Big Lots Inc. (NYSE:BIG) Q2 2019 Earnings Conference Call Transcript

Aug 30, 2019 • 08:00 am ET

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Big Lots Inc. (NYSE:BIG) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, welcome to the Big Lots' Second Quarter Conference Call. [Operator Instructions] A brief question-and-answer portion will follow the prepared remarks. [Operator Instructions]

At this time, I would like to introduce today's first speaker, Andy Regrut, Vice President of Investor Relations.

Executive
Andrew D. Regrut

Good morning. Thank you for joining us for our second quarter conference call. With me here today in Columbus are Bruce Thorn, our President and CEO; Lisa Bachmann, Executive Vice President, Chief Merchandising and Operating Officer; and Jonathan Ramsden, Executive Vice President, Chief Financial and Administrative Officer.

Before we get started, I'd like to remind you that any forward-looking statements we make on today's call involve risks and uncertainties and are subject to our safe harbor provisions, as stated in our press release and our SEC filings, and that actual results can differ materially from those described in our forward-looking statements.

All commentary today is focused on adjusted non-GAAP results. For the second quarter of fiscal 2019, this excludes after tax charges totaling $14.5 million or $0.37 per diluted share associated with the implementation of our strategic business transformation. Reconciliations of GAAP to non-GAAP adjusted earnings are available in today's press release.

This morning, Bruce, will start the call with a few opening comments. Lisa will discuss Q2 results from a merchandising perspective. Jonathan will review the financial highlights from the quarter and the outlook for fiscal 2019, and Bruce will complete our prepared remarks before taking your questions.

I'll now turn the call over to Bruce.

Executive
Bruce Thorn

Thank you, Andy, and good morning, everyone. Before we get started, I would like to take a moment to welcome Jonathan to the Big Lots family. He brings extensive and highly relevant experience to the role, and we're excited to have a leader with his breadth of knowledge as we transform and reposition our business for long-term success. I also want to extend my sincere gratitude and appreciation to Tim Johnson for his numerous contributions over 18 plus years with Big Lots. T.J. helped oversee the growth and professionalization of our finance function while also leading our real estate and asset protection teams. In addition, T.J. was instrumental in developing and fostering the Company's relationship with Nationwide Children's Hospital. We wish him the best as he embarks on a new chapter.

Turning back to our business, we'll talk more about the second quarter in near-term outlook in a moment. But before doing that, I want to take a few moments to review where we are on the transformational journey that we refer to as Operation North Star. While elements of this plan, such as the Store of the Future, have been in progress for some time, the last six to nine months have involved a tremendous effort across the entire organization to chart a new course for the Company. This effort has been supported by a world class consulting firm and began with extensive customer research to establish where we should play and how we can win. Since then, the transformation