Hooker Furniture Corp. (NASDAQ:HOFT) Q3 2018 Earnings Conference Call Transcript

Dec 06, 2018 • 02:00 pm ET

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Hooker Furniture Corp. (NASDAQ:HOFT) Q3 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Greeting, ladies and gentlemen, and welcome to the Hooker Furniture Quarterly Investor Conference Call. Reporting its Operating Results for the Fiscal 2019 Third Quarter First Nine Months. All participants are in a listen-only mode. A brief question-and-answer will follow the formal presentation. (Operator Instructions) As a reminder, this call is being is recorded.

It is now my pleasure to introduce your host, Paul Huckfeldt, VP of Finance and CFO for Hooker Furniture Corporation. Sir, you may begin.

Executive
Paul Huckfeldt

Thank you, Valerie. Good afternoon, and welcome to our quarterly conference call to review our sales and earnings for the fiscal 2019 third quarter which ended October 28, 2018. We appreciate your attention this afternoon.

Paul Toms, our Chairman and CEO will join me for our prepared remarks, for the question-and-answer portion of the call, we have several of our business unit heads available to take questions including Michael Delgatti, President of Hooker Domestic Upholstery and Emerging Channel; HMI, Co-Presidents, Doug Townsend and Lee Boone; Jeremy Hoff, President of our Hooker Branded segment; and Anne Jacobsen, our Chief Administrative Officer.

(Forward-Looking Cautionary Statements)

This morning, we reported consolidated net sales of $171.5 million and net income of $9.3 million, or $0.79 per diluted share for our fiscal 2019 third quarter, which ended on October 28. For the quarter, consolidated net sales increased 8.6% compared to a year ago, with increases in each of our three segments.

Diluted earnings per share increased to $0.79 per share compared to $0.61 a share in the prior year quarter.

Now, Paul Toms will comment on our second (ph) quarter results.

Executive
Paul Toms

Thank you, Paul, and good afternoon, everyone.

We are pleased to report increased revenues across all three of our business segments during the quarter. Consolidated sales were up nearly 9% and consolidated net income was up more than 29%. The efforts we are making to focus on winning channels of distribution by benefiting all segments of our business. The Hooker Branded segment led the way in our quarterly sales and income gains with both Hooker Casegoods and Hooker Upholstery reporting solid sales increases and a corresponding increase in profitability. At Home Meridian, profitability performance is improving and most of the business units are growing with some growing dramatically. In the All Other segment which includes our domestic Upholstery operations and H contract, sales growth are nearly 29% for the quarter was driven mainly by the inclusion of Shenandoah's net sales and a 10% sales increase at Bradington-Young.

Now taken a closer look at each of our segments, I will begin with the Hooker Branded segment. During the second quarter of this year, you may remember that sales in the Hooker Branded segment were essentially flat, following four consecutive quarters of year-over-year sales growth. The segment strongly rebound at this quarter with a 9% year-over-year improvement in both the Casegoods and Upholstery Divisions. The increases were driven by our focus on winning channels of distribution, strong product lines and in-stock positions on our best-sellers.

We also had a good