Fortune Brands Home & Security, Inc. (NYSE:FBHS) Q2 2019 Earnings Conference Call - Final Transcript

Aug 01, 2019 • 04:30 pm ET


Fortune Brands Home & Security, Inc. (NYSE:FBHS) Q2 2019 Earnings Conference Call - Final Transcript


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Good afternoon. My name is Jason, and I will be your conference operator today. At this time, I would like to welcome everyone to Fortune Brands Second Quarter 2019 Results 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 Mr. Brian Lantz, Senior Vice President of Communications and Corporate Administration. You may begin your conference call.

Brian Lantz

Good afternoon, everyone, and welcome to the Fortune Brands Home & Security quarterly investor conference call and webcast. We are pleased to be here today to provide an update on our progress during the second quarter of 2019. Hopefully, everyone has had a chance to review the news release issued earlier. The news release and the audio replay of the webcast of this call can be found in the investors section of our website.

I want to remind everyone that the forward-looking statements we make on the call today, either in our prepared remarks or in the associated question-and-answer session, are based on current expectations and our market outlook and are subject to certain risks and uncertainties that may cause actual results to differ materially from those currently anticipated. These risks are detailed in our various filings with the SEC such as our annual report on 10-K. The Company does not undertake to update or revise any forward-looking statements, which speak only to the time at which they are made.

Any references to operating profit, earnings per share or cash flow on today's call will focus on our results on a before charges and gains basis for continuing operations, with the exception of cash flow unless otherwise specified.

With me on the call today are Chris Klein, our Chief Executive Officer; Nick Fink, our President and Chief Operating Officer; and Pat Hallinan, our Chief Financial Officer. Following our prepared remarks, we've allowed some time to address questions that you may have.

I will now turn the call over to Chris.

Christopher Klein

Thank you, Brian, and thanks to everyone for joining us today. In the second quarter, our teams continued to execute at a high level in a soft market. I'm proud of the progress we have made, particularly in a market that looks as if it will now grow only in the 2% to 2.5% range in 2019. Although we anticipated a soft first half market, the market overall was softer than we expected in the second quarter, particularly in Canada. Despite the market, we're making solid progress on the business plans we communicated in February, which are centered on delivering shareholder value even through periods of more moderate market growth.

We have shown great discipline on capital expenses, and I'm very pleased with our progress in the first half of the year. By continuing to manage our businesses tightly with investments focused only on those areas needed to support new business and growth, we've put ourselves