Tempur Sealy International Inc. (NYSE:TPX) Q4 2019 Earnings Conference Call - Final Transcript

Feb 13, 2020 • 08:00 am ET


Tempur Sealy International Inc. (NYSE:TPX) Q4 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the Tempur Sealy Fourth Quarter 2019 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

[Operator Instructions] I would now like to hand the conference over to your speaker today, Aubrey Moore of Investor Relations.

Thank you. Please go ahead ma'am.

Aubrey Moore

Thank you, operator. Good morning, everyone, and thank you for participating in today's call. Joining me in our Lexington headquarters are Scott Thompson, Chairman, President and CEO; and Bhaskar Rao, Executive Vice President and Chief Financial Officer. After prepared remarks, we will open the call for Q&A.

Forward-looking statements that we make during this call are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that these forward-looking statements, including the Company's expectations regarding sales, earnings, net income, and adjusted EBITDA and anticipated performance for 2020 and subsequent periods involve uncertainties. Actual results may differ due to a variety of factors that could adversely affect the Company's business.

These factors that could cause actual results to differ materially from those identified include economic, regulatory, competitive, operating and other factors discussed in the press release issued today. These factors are also discussed in the Company's SEC filings, including, but not limited, to annual reports on Form 10-K and the Company's quarterly reports on Form 10-Q under the headings Special Note Regarding Forward-Looking Statements and/or Risk Factors. Any forward-looking statements speaks only as of the date on which it is made. The Company undertakes no obligation to update any forward-looking statements.

This morning's commentary will include non-GAAP financial information. The press release contains reconciliations of this non-GAAP financial information to the most directly comparable GAAP information, except as otherwise discussed in the press release, as well as information regarding the methodology used in our constant currency presentations.

We have posted the press release on the company's investor website at Investor.tempursealy.com and have also filed it with the SEC. Our comments will supplement the detailed information provided in the press release.

And now, with that introduction, it's my pleasure to turn the call over to Scott.

Scott L. Thompson

Thank you, Aubrey. Good morning and thank you for joining us on our 2019 fourth quarter and full year earnings call. I will start with comments on the quarter's record operating performance; then Bhaskar will review our quarterly and full-year financial performance with you in more detail; finally, I will conclude with an overview of our long-term corporate initiatives and our update on current trends.

The fourth quarter of 2019 was outstanding. The best fourth quarter in the Company's history. It was a record fourth quarter for sales, adjusted EBITDA and free cash flow. As compared to last year both sales and pro forma earnings grew double digit, and our leverage ratio declined by 1 full turn to 2.9 times. Simultaneously, we've been repurchasing $50 million of common stock each quarter, starting with the third quarter of last year.

Both our