Lamb Weston Holdings, Inc. (NYSE:LW) Q4 2020 Earnings Conference Call - Final Transcript

Jul 28, 2020 • 10:00 am ET

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Lamb Weston Holdings, Inc. (NYSE:LW) Q4 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day and welcome to the Lamb Weston Fourth Quarter and Fiscal Year 2020 Earnings Call. Today's conference is being recorded. And at this time I'd like to turn the conference over to Mr. Dexter Congbalay, VP Investor Relations of Lamb Weston. Please go ahead sir.

Executive
Dexter Congbalay

Good morning and thank you for joining us for Lamb Weston's Fourth Quarter -- a second okay my screen just went blank pause Fourth Quarter and Fiscal 2020 Earnings Call. This morning we issued our earnings press release which is available on our website lambweston.com. Please note that during our remarks we will make some forward-looking statements about the company's expected performance. These statements are based on how we see things today. Actual results may differ materially due to risks and uncertainties. Please refer to the cautionary statements and risk factors contained in our SEC filings for more details on our forward-looking statements.

Some of today's remarks include non-GAAP financial measures. These non-GAAP financial measures should not be considered a replacement for and should be read together with our GAAP results. You can find the GAAP to non-GAAP reconciliations in our earnings release. With me today are; Tom Werner, our President and Chief Executive Officer; and Rob McNutt our Chief Financial Officer. Tom will provide an overview of the near-term demand environment as well as our efforts to manage through the COVID-19 pandemic crisis. Rob will then provide some details on our fourth quarter results, financial liquidity and trends we're seeing so far in the first quarter of fiscal '21.

With that let me now turn the call over to Tom.

Executive
Tom Werner

Thank you, Dexter. Good morning everyone and thank you for joining our call today. Before getting into our performance in the quarter, I want to thank the entire Lamb Weston team for their commitment to support our communities our customers and our consumers during these trying times, while keeping themselves and their colleagues safe. We should be proud of doing our part to help feed people around the world. It's their commitment and spirit of teamwork that makes me so honored to be part of this great company.

Now let me turn to the performance. The final months of fiscal 2020 were some of the most challenging in Lamb Weston's history. After starting to realize the impact of government efforts to control the spread of the coronavirus in China on our local operations in February, we saw a more severe effect on our overall business beginning in late March as governments in the U.S. and Europe took actions to try to slow the spread of the virus. These government restrictions on restaurants and other foodservice businesses abruptly and significantly reduced restaurant traffic and the demand for fries. In addition the initial drop in demand was so steep and quick that customers needed to adjust inventory levels which further reduced our shipments. As a result our sales and earnings fell in the fourth quarter.

Starting in May, U.S. demand for fries began to recover and