ACCO Brands Corporation (NYSE:ACCO) Q2 2020 Earnings Conference Call - Final Transcript

Jul 29, 2020 • 08:30 am ET

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ACCO Brands Corporation (NYSE:ACCO) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Q2 2020 ACCO Brands Corp Earnings Conference Call. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Christine Hanneman, Senior Director of Investor Relations. Please go ahead, ma'am.

Executive
Christine Hanneman

Good morning. This is Christine Hanneman, Senior Director of Investor Relations. Welcome to ACCO Brands second quarter 2020 conference call. Speaking on the call today are Boris Elisman, Chairman, President and Chief Executive Officer of ACCO Brands Corporation; and Neal Fenwick, Executive Vice President and Chief Financial Officer.

Slides that accompany this call have been posted to the Investor Relations section of accobrands.com. When speaking about our results, we may refer to adjusted results. Adjusted results exclude transaction, integration and restructuring costs and reflect an adjusted tax rate. Schedules of adjusted results and other non-GAAP financial measures and a reconciliation of these measures to the most directly comparable GAAP measures are in the earnings release and slides that accompany this call. Due to the inherent difficulty in forecasting and quantifying certain amounts, we do not reconcile our forward-looking adjusted earnings per share, free cash flow, net leverage ratio or adjusted tax rate guidance.

Forward-looking statements made during the call, including statements concerning the impacts of the COVID-19 pandemic on the company, are based on the beliefs and assumptions of management based on information available to us at the time the statements are made. Our forward-looking statements are subject to risks and uncertainties and our actual results could differ materially. Among the factors that could cause our results to differ materially from our forward-looking statements is the scope and duration of the COVID-19 pandemic, government actions and third-party responses to it and the consequences for the global economy as well as the regional and local economies in which we operate, uncertainties regarding our geographies, distribution channels and consumer behavior will evolve over time in response to the pandemic and its impact on our business, operations, results of operations, financial condition and liquidity.

Please refer to our earnings release and SEC filings for an explanation of certain of these risk factors and assumptions. Our forward-looking statements are made as of today and we assume no obligation to update them going forward. Following our prepared remarks, we will hold a Q&A session.

Now, I will turn the call over to Boris Elisman.

Executive
Boris Elisman

Good morning, everyone. Thank you for joining us. I will spend a few minutes with you in the second quarter results. Most of my time will be used for an update on the impact of COVID-19 on our business, actions taken in response and implications for the second half. Neal will follow me with more color and details on the second quarter and provide additional comments on our cost reductions, balance sheet and expected use of cash in 2020. Then we'll take your questions.

Second quarter sales were down 29% to $367 million at the upper end of our guidance. Our adjusted EPS was $0.12, significantly