The Michaels Companies, Inc. (NASDAQ:MIK) Q2 2019 Earnings Conference Call Transcript

Sep 04, 2019 • 09:00 am ET

Previous

The Michaels Companies, Inc. (NASDAQ:MIK) Q2 2019 Earnings Conference Call Transcript

Share
Close

Loading Event

Loading Transcript

Presentation
Operator
Operator

Good morning. My name is Carey, and I will be your conference operator today. At this time, we'd like to welcome everyone to The Michaels Companies [Phonetic] Second Quarter Earnings Conference call. [Operator Instructions] Thank you.

And now I'd like to turn the call over to your host, Elaine Locke, Vice president of Investor Relations and Treasurer. Ms. Locke, you may begin the conference.

Executive
Elaine Locke

Thank you, Carey. Good morning, and thank you for joining us today. Earlier this morning, we released our financial results for the second quarter of fiscal 2019. A copy of the press release and a few related slides are available in the Investor Relations section of our website at www.michaels.com.

Before we begin our discussion, let me remind you that today's press release and the presentations made by our executives on this call may constitute forward-looking statements and are made pursuant to and within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 as amended. While these statements address plans or events, which we expect will or may occur in the future, a number of factors, as set forth in our SEC filings and press releases, could cause actual results to differ materially from our expectations. We refer you to and specifically incorporate the cautionary and risk statements contained in today's press release and in our SEC filings. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of today, September 4th, 2019. We have no obligation to update or revise our forward-looking statements, except as required by law, and you should not expect us to do so.

On today's call, we will reference non-GAAP financial measures, including adjusted operating income, adjusted net income and adjusted diluted earnings per share, all adjusted for restructuring charges, primarily related to the Aaron Brothers and Pat Catan store closures, severance charges related to the departure of our former CEO, a write-off of an investment in a liquidated business, losses on early extinguishment of debt and refinancing costs, interest paid on our 2020 senior subordinated notes during a period between the issuance of our 2027 senior notes and the redemption of our 2020 senior subordinated notes and tax adjustments related to the 2017 Tax Act as applicable. A reconciliation of these measures to the corresponding GAAP measures are detailed in today's earnings release. We'll begin this morning with prepared remarks from Mark Cosby, Interim CEO; and Denise Paulonis, CFO. Following our prepared remarks, we will open the call for questions.

Now I'd like to introduce Mark Cosby for some initial comments. Mark?

Executive
Mark Cosby

Thank you, Elaine, and good morning, everyone. This morning we reported results for the second quarter that were above the guidance range we provided on our last earnings call. Comp store sales were positive 0.3%, adjusted operating income was $75 million and adjusted diluted earnings per share was $0.19. In the last call, I said our number one goal is to improve our sales performance and