La-Z-Boy Incorporated (NYSE:LZB) Q4 2020 Earnings Conference Call - Final Transcript

Jun 24, 2020 • 08:30 am ET


La-Z-Boy Incorporated (NYSE:LZB) Q4 2020 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, and welcome to your La-Z-Boy Fiscal 2020 Full Year and Fourth Quarter Conference Call. [Operator Instructions]. And the floor will be opened for questions following the presentation.

At this time, it is my pleasure to turn the floor over to Kathy Liebmann. Please go ahead.

Kathy Liebmann

Thank you, Kristie and good morning. Thank you for joining us to discuss our fiscal 2020 fourth quarter and full year results. With us this morning are Kurt Darrow, La-Z-Boy's Chairman, President and Chief Executive Officer; and Melinda Whittington, CFO.

Kurt will begin and close the call, and Melinda will speak to the financials midway through. We'll then open the call to questions. Slides will accompany this presentation, and you may view them through our webcast link, which will be available for one year. And a telephone replay of the call will be available for one week beginning this afternoon.

Before we begin the presentation, I would like to remind you that some statements made in today's call include forward-looking statements about La-Z-Boy's future performance. Although we believe these statements to be reasonable, our actual results could differ materially. The most significant risk factors that could affect our future results are described in our annual report on Form 10-K. We encourage you to review those risk factors as well as other key information detailed in our SEC filings. Also, our earnings release is available under the News and Events tab on the Investor Relations page of our website, and it includes reconciliations of certain non-GAAP measures, which are also included as an appendix at the end of our conference call slide deck.

With that, I will now turn the call over to Kurt Darrow, La-Z-Boy's Chairman, President and Chief Executive Officer. Kurt?

Kurt L. Darrow

Thank you, Kathy, and good morning everyone. Following yesterday's close of market, we reported our fiscal 2020 fourth quarter and full year results. Fiscal '20 was indeed a tale of two cities.

Our performance through the first ten months of the year was one of the best in our Company's history, with strong retail results, great product introductions and supply chain excellence, all translating into solid sales and earnings growth. However, all of that changed in March when the COVID-19 pandemic and related retail closure forced us to cease production, close our own stores, and wait for the economy to reopen. Now, given our philosophy of fiscal conservatism, we entered the crisis with a strong balance sheet, which positioned us to successfully move through this uncertain period. With the health, safety and well-being of our employees, customers and communities our top priority, we responded quickly and rolled out an action plan on March 29th, that included a series of elements essential to ensure La-Z-Boy not only weathers the unprecedented storm, but emerges with strength.

In addition to temporary plant and store closes, our COVID-19 action plan included a temporary furloughing 70% of our workforce, eliminating all non-essential operating expenses, significantly reducing capital expenditures, suspending the June dividend and share