CLARCOR Inc. (NYSE:CLC) Q4 2015 Earnings Conference Call - Final Transcript

Jan 14, 2016 • 11:00 am ET


CLARCOR Inc. (NYSE:CLC) Q4 2015 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the CLARCOR Inc. Fourth Quarter 2015 Earnings Conference Call. Today's conference is being recorded. At this time, all participants are in a listen-only mode. Following the presentation we will conduct a question-and-answer session, instructions will be provided at that time for you to queue up for questions.It is now my pleasure to turn the conference over to Mr. Van Mol of DVL Seigenthaler. Please go ahead, Mr. Van Mol.

John Van Mol

Thank you. We appreciate your interest in joining us on CLARCOR's conference call to discuss results for the fourth quarter of 2015. By now everyone should have received a copy of the news release that was distributed yesterday, anyone does need a copy, it is available on CLARCOR's website at or you can call Catherine Barrette at 615-244-1818 and she will send you a copy immediately.(Forward-Looking Cautionary Statements)It's now my pleasure to turn the call over to Chris Conway for his opening remarks. Mr. Conway?

Christopher L. Conway

Thank you. Good morning, and thank you for joining us today. With me are David Fallon, our Chief Financial Officer and David Janicek, our Corporate Controller.

We had a challenging fourth quarter, but as we turn the corner on 2015 and look to 2016, I'm optimistic about a number of things. I'll give a brief overview of our results and spend a few minutes discussing our market outlook and what we're doing to strengthen CLARCOR during these challenging times by building on foundations we laid this past year. Then I'll turn it over to David Fallon to review our financial results in more detail and discuss our guidance.

We reported diluted earnings per share of $0.67 for the quarter and $2.67 for the full year after the close of trading yesterday. As noted in our press release, our full year 2015 results contained restructuring cost and the impact from disposition of JL Clark. When adjusted for these charges, 2015's non-GAAP adjusted EPS for the quarter was $0.74 versus non-GAAP EPS of $0.84 in the fourth quarter of 2014. Full year non-GAAP EPS was $2.65 compared to 2014's $2.91 non-GAAP figure, a 9% decrease. David Fallon will spend a little more time on this in a moment.

As I said, 2015 was a challenging but foundation building year for CLARCOR. Despite the macroeconomic headwinds we faced in many of our markets, sales expanded 3% when adjusted for changes in average foreign exchange rates. We achieved these results as we continue to invest in and successfully execute upon our long-term strategic growth initiatives. For example, this was the first year following our acquisition of total Filter Resources, which is now part of our PECOFacet business. This acquisition helped to offset lower natural gas filtration system sales leading to flat sales overall for oil and gas business in Q4 adjusted for foreign exchange.

We met the Filter Resource acquisition objectives set for the first year, and the business is now integrated into PECOFacet. As a result,