Herman Miller Inc. (NASDAQ:MLHR) Q3 2016 Earnings Conference Call - Final Transcript

Mar 17, 2016 • 09:30 am ET

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Herman Miller Inc. (NASDAQ:MLHR) Q3 2016 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, everyone, and welcome to Herman Miller Incorporated Third Quarter Fiscal Year 2016 Earnings Results Conference Call. This call is being recorded. This presentation will include forward looking statements that involve risks and uncertainties that could cause actual results to differ materially from those into forward looking statements. These risks and uncertainties include those risk factors discussed in the company's reports on form 10-K, and 10-Q and other reports filed with the Securities and Exchange Commission.

Today's presentation will be hosted by Mr. Brian Walker, President and CEO; Mr. Jeff Stutz, Executive Vice-President and CFO;Mr. John McPhee, Executive Vice-President Consumer and President Design Within Reach; and Mr. Kevin Veltman, Vice President, Investor Relations and Treasurer. Mr. Walker will open the call with brief remarks, followed by a more detailed presentation of the financials by Mr. Stutz and Mr. Veltman. We will then open the call to your questions. We will limit today's call to 60 minutes and ask the callers to limit their questions to allow time for all to participate.

At this time, I would like to begin the presentation by turning the call over to Mr. Walker, please go ahead.

Executive
Brian Walker

Good morning, everyone, and thank you for joining us. I'll begin the call today by sharing my thoughts and our performance in the overall direction of the business, and then I'll turn it over to Jeff and Kevin to cover third quarter financials in more detail. We also have John McPhee, the President of Design Within Reach, joining us for the Q&A portion of the call to offer his perspective on the Consumer segment and the opportunities we see for growth and improvement in that business.

As we announced yesterday, despite headwinds in the global economy and recent volatility in the stock market, we delivered strong financial results this quarter, highlighted by organic sales growth of nearly 6% and adjusted earnings per share up 24% from the same quarter a year ago. We are especially encouraged by the performance of our North American business segment where our focused effort investments over the past year continue to drive improved top line growth and operating leverage. This represents a significant turnaround from where our business in North America was running just a year ago, and as encouraging as our numbers are, I'm even more proud of what it says about the character and culture of our people.

We do a lot of things well at Herman Miller, but like any business, we face issues and challenges. I believe the best companies are the ones who standup and own their problems and then rally around a solution. We did exactly that a year ago and it's what you should expect from us now and in the future. To be sure, today we faced some clear challenges ranging from macroeconomic pressures to unique issues within our business.

With that said, our results this quarter prove that on the whole, we are executing well on our strategy of delivering inspiring designs through a