Tupperware Brands Corporation (NYSE:TUP) Q1 2018 Earnings Conference Call Transcript

Apr 25, 2018 • 08:30 am ET


Tupperware Brands Corporation (NYSE:TUP) Q1 2018 Earnings Conference Call Transcript


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Hi, good morning. My name is Joshua, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Tupperware Brands Corporation First Quarter 2018 Earnings Conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions) Thank you.

I would like to turn the call over to Rick Goings, Chairman and CEO. You may begin your conference.

Rick Goings

Thanks, Joshua. Good morning, everyone. I'm in Orlando with Tricia Stitzel, our President and CEO-Elect; Mike Poteshman, our CFO; and James Hunt, the Head of IR. Along with our prepared remarks, it's on Slide 2, we have prepared these usual slides, including standard message with regard to forward-looking statements. I know most of you have already seen the release, and in a moment, I'm going to turn it over to Tricia and Mike to get into, not only the details of the quarter, our outlook, but also handle the bulk of questions and answers.

As announced in February, Tricia takes over as CEO, actually in just about two weeks, so this is going to be my last time participating in our earnings call as CEO. I do want to give you a brief overview of the quarter, and then I've got some words with regard to perspective of where this company is that I think are fitting at this time. As you see in the first quarter, it was a disappointment, down 2% in dollars, while local currency sales decreased 6%, which was below the low-end of our January guidance range of 3 points. Through our releases, we have shared with you the challenges we have continued to face in continental Europe as well as Brazil, India and Indonesia. Tricia and Michael will get more into those. There were, though, bright spots in our portfolio, most significantly, in China, the U.S., Canada, but also Russia, CIS, Malaysia, Singapore, as well in our Tupperware and Beauty businesses in South Africa and in Mexico.

Our adjusted EPS in Q1 was $0.91, that was below the low-end of January guidance range by $0.10, including a $0.06 hit from taxes, which is still to me seems to be a bouncing ball. We've just went through all the new tax regs yesterday, as well as a $0.01 benefit from foreign exchange versus our January guidance. Mike's going to amplify the details of the earnings and performance metrics, including the additional tax element that is impacting this P&L.

Let me point out that this tax item is not expected to impact cash flow, so no real impact with regard to our ability to support investment in the company and dividend and share repurchase. Now worth noting at this time though is, I've personally done more than 80 quarterly releases, and most of this management team has been together during that period of time since we spun this company off in 1996. Of those 80 releases, I am pleased