The Michaels Companies, Inc. (NASDAQ:MIK) Q4 2017 Earnings Conference Call - Final Transcript

Mar 22, 2018 • 09:00 am ET

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The Michaels Companies, Inc. (NASDAQ:MIK) Q4 2017 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning. My name is Phil and I will be your conference operator today. At this time, we would like to welcome everyone to the Michaels Company's Fourth Quarter Earnings Conference Call. [Operator Instructions]

Now, I'd like to turn the call over to your host, Kiley Rawlins, Vice President of Investor Relations and Communications. Ms. Rawlins, you may begin the conference.

Executive
Kiley F. Rawlins

Thank you, Phil. Good morning everyone and thank you for joining us today. Earlier this morning, we released our fourth quarter and fiscal 2017 financial results. A copy of the press release is available in the Investor Relations section of our website at www.michaels.com.

Before we begin our discussion, let me remind you that today's press release and the presentations made by our executives on this call may constitute forward-looking statements and are made pursuant to and within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. While these statements address plans or events, which we expect will or may occur in the future, a number of factors as set forth in our SEC filings and press releases could cause actual results to differ materially from our expectations.

We refer you to and specifically incorporate the cautionary and risk statements contained in today's press release and in our SEC filings. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of today, March 22nd, 2018. We have no obligation to update or revise our forward-looking statements except as required by law, and you should not expect us to do so.

On today's call, we will reference non-GAAP financial measures, including adjusted EBITDA as defined in our credit agreement, adjusted operating income, adjusted net income and adjusted diluted earnings per share. A reconciliation of these measures to the corresponding GAAP measures are detailed in today's earnings release.

We'll begin this morning with highlights from Chuck Rubin, Chairman and CEO, and then Denise Paulonis, our CFO, will review our financial results and outlook in more detail. Following our prepared remarks, we will open the call for questions. As this is our year-end call, our prepared comments will take longer than usual to help us accommodate as many question as possible, please let yourself to one question and then queue for any follow-up questions. Thank you.

And now I'll turn the call over to Chuck Rubin. Chuck?

Executive
Carl S. Rubin

Thank you, Kiley. Good morning everyone. I want to start this morning with a review of our fourth quarter results, highlight what we accomplished in 2017 and then discuss our priorities for 2018. As expected, we continue to build momentum in the fourth quarter. Total sales for the quarter increased to 8% to $1.9 billion inclusive of the extra week. Comp store sales increased 2.5%, driven by increases in both average ticket and customers transactions and adjusted diluted earnings per share increased 24% to $1.19. Denise will discuss the quarters financials in more detail later in the call.

Our Q4 results