Cardinal Health, Inc. (NYSE:CAH) Q1 2018 Earnings Conference Call - Preliminary Transcript

May 03, 2018 • 08:30 am ET


Cardinal Health, Inc. (NYSE:CAH) Q1 2018 Earnings Conference Call - Preliminary Transcript


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Good day, ladies and gentlemen, and welcome to the Tempur Sealy First Quarter 2018 Earnings Conference Call. (Operator Instructions) I would now like to introduce your host for today's conference call, Ms. Aubrey Moore. You may begin, ma'am.

Aubrey Moore

Thank you, operator. Good morning, everyone, and thank you for participating in today's call. Joining me in our Lexington headquarters are Scott Thompson, Chairman, President and CEO; and Bhaskar Rao, Executive Vice President and Chief Financial Officer. After prepared remarks, we will open the call for questions.

Forward-looking statements that we make during this call are made pursuant to the Safe Harbor provisions of the Private Securities and Litigation Reform Act of 1995. Investors are cautioned that these forward-looking statements, including the company's expectations regarding sales, earnings, net income, and adjusted EBITDA, and anticipated performance for 2018 and subsequent periods, involve uncertainties. Actual results may differ due to a variety of factors that could adversely affect the company's business.

The factors that could cause actual results to differ materially from those identified include economic, regulatory, competitive, operating, and other factors discussed in the press release issued today.

These factors are also discussed in the company's SEC filings, including but not limited to, Annual Reports on the Form 10-K, the company's Quarterly Reports on 10-Q under the headings Special Note Regarding Forward-Looking Statements and/or Risk Factors. Any forward-looking statement speaks only as of the date on which it is made. The company undertakes no obligation to update any forward-looking statements.

This morning's commentary will include non-GAAP financial information. The press release contains reconciliations of these non-GAAP financial information to the most directly comparable GAAP information, except as otherwise discussed in the press release as well as information regarding the methodology used in our constant currency presentations. We have posted the press release on the company's investor website at and have also filed it with the SEC.

Our comments will supplement the detailed information provided in the press release.

And now, with that introduction, it is my pleasure to turn the call over to Scott.

Scott L. Thompson

Thank you, Aubrey. Good morning, and thank you for joining us on our 2018 first quarter earnings call. In a few minutes Bhaskar will review our quarterly financial performance with you in detail. I would like to reflect on the progress the team has made in resetting the foundation of the company following the termination of our supply agreement with Mattress Firm approximately a year ago. I'm very proud of what's been accomplished as an organization in the face of an unexpected challenge.

While there's still more work to be done, I'd like to highlight four key items. First highlight is that we are making progress balancing our distribution model. Our primary focus will always be third-party retail distribution as the vast majority of consumers still prefer to try out mattresses in well-run local stores before purchasing. However, with the termination of our supply agreement with Mattress Firm, our domestic doors declined by 3,500 locations, leaving us gaps in