CLARCOR Inc. (NYSE:CLC) Q3 2016 Earnings Conference Call - Final Transcript

Sep 15, 2016 • 11:00 am ET

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CLARCOR Inc. (NYSE:CLC) Q3 2016 Earnings Conference Call - Final Transcript

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Operator
operator

Good morning, ladies and gentlemen and thank you for standing by. Welcome to the CLARCOR Inc. Third Quarter 2016 Earnings Conference Call. Today's conference call 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. Tom Lawrence. Please go ahead, Mr. Lawrence.

Executive
Tom Lawrence

Thank you. We appreciate your interest in joining us on CLARCOR's conference call to discuss results for the third quarter of 2016. By now, everyone should have received a copy of the news release that was distributed yesterday. If anyone does need a copy, it is available on CLARCOR's website at www.clarcor.com, or you can call Olivia Karvin (ph) at 615-244-1818, and she will send you a copy immediately.

Before I turn the call over to Chris Conway, CLARCOR's Chairman, President & CEO, I'll remind you that all statements made in the news release and during this conference call, other than statements of historical facts are forward-looking statements. These statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

(Forward-Looking Cautionary Statements)

Finally, we want to let people know that the information statements made during the call are made as of the date of the call, September 15, 2016. Those listening to any replay should understand that the passage of time by itself will diminish the quality of the statements. Also the contents of the call are the property of the company, and a replay or transmission of the call may be done only with the consent of CLARCOR.

It's now my pleasure to turn the call over to Chris Conway for his opening remarks.

Executive
Chris Conway

Thank you, Tom. Good morning and thank you for joining us today. With me are David Fallon, our CFO; and George Manor, our Corporate Controller. I'll open our discussion today with some brief remarks on the market environment and its effects on our business, then I will turn it over to David Fallon to review our financial results in more detail. After David's remarks, I'll review our outlook and our strategic initiatives before we open it up to questions.

We reported diluted earnings per share of $0.73 for the quarter after the close of trading yesterday. This compares to $0.72 for last year's third quarter and indicates good operational execution in spite of a decrease in net sales of 7% or $26.2 million. Many of the markets we faced remained challenged most significantly in our oil and gas related businesses and to a lesser extent, agriculture and industrial air markets. And we anticipate these challenges continuing through the fourth quarter, such that we are reducing the midpoint of our 2016 guidance to $2.60.

Despite the sluggish macroeconomic environment in which we find ourselves, we are making progress on a number of strategic fronts which we