Global Self Storage, Inc. (NASDAQ:SELF) Q1 2020 Earnings Conference Call - Final Transcript

Dec 04, 2019 • 06:49 am ET


Global Self Storage, Inc. (NASDAQ:SELF) Q1 2020 Earnings Conference Call - Final Transcript


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Good morning, my name is Rob, and I will be your conference operator today. I would like to welcome everyone to the HNI Corporation Third Quarter Fiscal 2019 Conference Call. [Operator Instructions]. Thank you, Mr. Herring, you may begin your conference.

Jack Herring

Thank you, good morning. I'm Jack Herring, Treasurer and Director of Investor Relations for HNI Corporation. Thank you for joining us to discuss our third quarter fiscal 2019 results. Here with me are Jeff Lorenger, President and CEO, and Marshall Bridges, Senior Vice President and CFO.

Copies of our financial news release, earnings presentation, and non-GAAP reconciliations are posted on our website. Statements made during this call that are not strictly historical facts are forward-looking statements, which are subject to known and unknown risk. Actual results could differ materially. The earnings presentation posted on our website includes additional factors that could affect actual results. The Corporation assumes no obligation to update any forward-looking statements made during the call.

I'm pleased to turn the call over to Mr. Jeff Lorenger.

Jeffrey Lorenger

Good morning. We will see our assessment of the third quarter and provide some thoughts on our outlook for the rest of the year. We'll then open up the call for questions. Our teams delivered strong results in the third quarter, we grew earnings per share 20% and generated our highest quarterly operating profit since 2015.

We did this while continuing to confront dynamic market conditions and inflationary pressures. We continue to see [Phonetic] a range of demand conditions. Our supplies-driven office furniture business is showing increased stability, unlike the first six months of the year, we did not see major demand volatility in the third quarter, that market continues to evolve, but our trajectory is improving. One of the primary drivers of improvement is our e-commerce efforts, which continue to gain momentum, and drive profit.

In our contract business, we drove strong third quarter growth with organic sales up 12%, given our second-quarter order momentum and ending backlog, we expect it that level of growth. In the mid-August time-frame, we saw small-to-mid-size project demand soften. This area of the market began seeing delays at it above normal rate. The delays appear to be a reaction of macroeconomic uncertainty, customers' taking a wait and see approach. Our win rate in this area continues to improve, indicating we are competing well. Large projects and day-to-day business have remained relatively strong. In total, we are seeing -- we are still expecting fourth quarter contract growth, but it will be at a lower than previously expected.

In Hearth, we had a solid quarter. Hearth profit increased 8% on sales growth of 1%. Growth in new construction was partially offset by a small decline in retail products. Both of these businesses are showing positive recent trends. In new construction, we have seen three consecutive months of housing permit growth after eight months of decline. And our retail business in the -- is in the midst of its seasonal ramp up and generating growth. In summary,