Hostess Brands, Inc. (NASDAQ:TWNK) Q4 2017 Earnings Conference Call - Preliminary Transcript

Feb 28, 2018 • 04:30 pm ET


Hostess Brands, Inc. (NASDAQ:TWNK) Q4 2017 Earnings Conference Call - Preliminary Transcript


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Greetings and welcome to the Hostess Brands Fourth Quarter 2017 Earnings Conference Call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would like to turn the conference over to your host Katie Turner, please go ahead.

Katie Turner

Thank you. Good afternoon and welcome to the Hostess Brands Fourth Quarter and Full Year 2017 Earnings Conference Call. By now everyone should have access to the earnings release for the period ended December 31,2017. That went out this afternoon at approximately 4:05pm Eastern time. If you've not received a release, it's available on Hostesse's website at This call is being webcast and a replay will be available on the company's website. Hostess would like to remind you that today's discussion will include a number of forward looking statements. If you will refer to Hostess's earnings release as well as the company's most recent SEC filings, you will see a discussion of the factors that could cause the company's actual results to differ materially from these forward looking statements. Please remember that the company undertakes no obligation to update or revise these forward looking statements.

The company will make a number of references to non-GAAP financial measures. The company believes these measures provide investors with a useful perspective on the underlying growth trends of the business and has included in this earnings release a full reconciliation of non-GAAP financial measures to the most comparable GAAP measures. Hostess has also supplemented its earnings release with unaudited pro forma financial information for the quarter and year ended December 31,2016, giving us back to the November 2016 business combination as if it occurred on January 1, 2016. All references to the results for the quarter and year ended December 31, 2016 preferred assess on audited pro forma results. In addition, growth rates quoted for ISP are based upon 2016 net revenue including periods prior to the company's acquisition of superior takes part of [inaudible].

Lastly in the fourth quarter hostess reassesses segment reporting, and company now includes Hostess Branded bread products, and frozen retail and sweet baked goods. Previously these were included in other with [inaudible] bakery. Inso bakery is now reported separately. Now I'd like to turn the call over to Hostess's CEO Bill Toler.

Bill Toler

Thanks, Katie. Good afternoon and thank you for joining us today. I'll begin our discussion with a brief overview of the fourth quarter the key business highlights. Dean Metropoulos, our executive chairman will review our recent acquisition and enables us an expansion of our breakfast strategy. And finally, Tom Peterson, our CFO greater detail on our financial results and guidance for fiscal 2018. Then we'll open up the call for questions. We were very pleased with our strong finished 2017 our innovation pipeline fuelled our financial results for the quarter and drove our record total SPGs we think good market share for the year. In addition, we