Blue Nile Inc. (NASDAQ:NILE) Q4 2015 Earnings Conference Call - Final Transcript

Feb 11, 2016 • 08:30 am ET


Blue Nile Inc. (NASDAQ:NILE) Q4 2015 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen. My name is Jennifer, and I will be your host operator on this call. Your lines will be placed on a listen-only mode. At the end of the presentation management will be available for questions. [Operator Instructions]

At this time, I would like to introduce Nancy Shipp, Director of Investor Relations of Blue Nile.

Nancy Shipp

Good morning, and thank you for joining us on our conference call today to review our fourth quarter and full year 2015 financial results. With me today are Harvey Kanter, President and Chief Executive Officer; and David Binder, Chief Financial Officer. Both will be available for Q&A following today's prepared remarks.

Before we begin, I would like to remind you that we will make forward-looking statements during this call regarding the company's future performance. These statements are only predictions based upon assumptions that are believed to be reasonable at the time they are made, and are subject to significant risks and uncertainties. You should not rely on these forward-looking statements as representing our views in the future and we undertake no obligation to publicly update or revise these statements. Our actual results may differ materially and adversely from any forward-looking statements discussed on this call. Our quarterly reports on Form 10-Q, our annual reports on Form 10-K and other forms on file with the SEC, identify important risk factors and uncertainties that you should consider when making an investment decision regarding Blue Nile, and that may affect whether our forward-looking statements prove to be correct.

Also, please note that during the course of this conference call we may discuss certain non-GAAP financial measures as we review the company's performance. We will discuss non-GAAP free cash flow, which is defined as net cash provided by or used in operating activities or operating cash flow less outflows for purchases of fixed assets including internal use software and website development.

We will discuss international sales on a constant exchange rate basis and we will also discuss non-GAAP adjusted EBITDA, which is defined as earnings before interest and other income, taxes, depreciation and amortization adjusted to exclude the effects of stock-based compensation expense.

Please refer to the Investor Relations section of our website to obtain a copy of our earnings release, which contains reconciliation of non-GAAP measures to the nearest comparable GAAP measures.

Now, I would like to turn the call over to Harvey, our President and CEO. Harvey?

Harvey Kanter

Good morning, and welcome to Blue Nile's fourth quarter 2015 earnings conference call. Today we announced fourth quarter sales of $150 million, a decrease of 4.8%. When taking into account the 53-week in 2014, this was a decrease of 1%. On an EPS basis, we delivered $0.43 per share, an increase of 5%; and on an annual basis the company delivered $480 million, an EPS of $0.90 a share, an increase of 13%. While revenue in the quarter decreased and we are experiencing broad economic macro challenges, we did grow profitability for the fifth straight quarter. In