Hanesbrands Inc. (NYSE:HBI) Q4 2018 Earnings Conference Call Transcript

Feb 07, 2019 • 08:30 am ET


Hanesbrands Inc. (NYSE:HBI) Q4 2018 Earnings Conference Call Transcript


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Good day, ladies and gentlemen, and welcome to the Hanesbrands Fourth Quarter 2018 Earnings Conference Call. At this time all participants are on a listen only mode. (Operator Instructions) As a reminder today's conference is being recorded.

I'd now like to introduce your host for today's conference Mr. T.C. Robillard, Chief Investor Relations Officer. Sir please go ahead.

Thomas C. Robillard

Good day, everyone, and welcome to the Hanesbrand's quarterly investor conference call and webcast. We're pleased to be here today to provide an update on our progress after the fourth quarter of 2018. Hopefully everyone has had a chance to review the news release we issued earlier today. The news release updated FAQ document and the replay of this call can be found in the Investors section of our hanes.com website.

On the call today we may make forward looking statements either in our prepared remarks or on the associated question and answer session. These statements are based on current expectations or beliefs and are subject to certain risks and uncertainties that may cause actual results to differ materially. These risks are detailed in our various filings with the SEC and may be found on our website as well as in our news releases.

The Company does not undertake to update or revise any forward looking statements which speak only to the time at which they are made. Unless otherwise noted, today's references to our consolidated financial results as well as our 2019 guidance represent continuing operations and exclude all acquisition, integration and other action related charges and expenses. Additional information including a reconciliation of these and other non-GAAP performance measures to GAAP can be found in today's press release.

With me on the call today are Gerald Evans, our Chief Executive Officer; and Barry Hytinen, our Chief Financial Officer. In today's call Gerald and Barry will provide some brief remarks and then we'll open it up to your questions.

I will now turn the call over to Gerald.

Gerald W. Evans

Thank you, T.C. We are very pleased with our fourth quarter performance including strong organic revenue growth, significant cash flow generation and reduced leverage. Our three growth initiatives Champion, Consumer Direct and International delivered stronger than expected results in the quarter. And our US Innerwear business saw meaningful improvement from the third quarter with revenue and profit results that were in line with our guidance. This growing momentum across our business delivered our best fourth quarter performance in four years. And as we look into 2019, we're well-positioned to accelerate our operating cash flow growth as well as bring our leverage back within our long term range.

At our Investor Day, we spoke about how we've diversified our business and increased our global scale to provide a path to significantly grow our cash flow and generate higher shareholder returns over the next several years. Our strong fourth quarter results and our 2019 operating cash flow outlook, underscore the progress we are making toward achieving the goals we laid out in May.

For the quarter,