Owens Corning (NYSE:OC) Q2 2020 Earnings Conference Call - Final Transcript

Jul 29, 2020 • 09:00 am ET


Owens Corning (NYSE:OC) Q2 2020 Earnings Conference Call - Final Transcript


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Good day, and welcome to the Owens Corning Second Quarter 2020 Earnings Conference Call. [Operator Instructions]Please note this event is being recorded.

I would now like to turn the conference over to Scott Cripps, Vice President, Investor Relations. Please go ahead.

Scott Cripps

Thank you, and good morning, everyone. Thank you for taking the time to join us for today's conference call and review of our business results for the second quarter 2020. Joining us today are Brian Chambers, Owens Corning's Chairman and Chief Executive Officer; and Prith Gandhi, our Interim Chief Financial Officer. [Operator Instructions]

Earlier this morning, we issued a news release and filed a 10-Q that detailed our financial results for the second quarter 2020. For the purposes of our discussion today, we have prepared presentation slides that summarize our performance and results, and we will refer to these slides during the call. You can access the earnings press release, Form 10-Q and presentation slides at our website, owenscorning.com. Refer to the Investors link under the Corporate section of our home page.

A transcript and recording of this call and the supporting slides will be available on our website for future reference. Please reference slide two before we begin, where we offer a couple of reminders. First, today's remarks will include forward-looking statements based on our current forecasts and estimates of future events. These statements are subject to risks, uncertainties and other factors that could cause our actual results to differ materially. We undertake no obligation to update these statements beyond what is required under the applicable securities laws. Please refer to the cautionary statements and the risk factors identified in our SEC filings for a more detailed explanation of the inherent risks and uncertainties affecting such forward-looking statements. Second, the presentation slides and today's remarks contain non-GAAP financial measures. Explanations and reconciliations of non-GAAP to GAAP measures may be found in the text and financial tables of our earnings press release and presentation, both of which are available on owenscorning.com.

Adjusted EBIT is our primary measure of period-over-period comparisons, and we believe it's a meaningful measure for investors to compare our results. Consistent with our historical practice, we have excluded certain items that we believe are not representative of our ongoing operations when calculating adjusted EBIT and adjusted earnings. We adjust our effective tax rate to remove the effect of quarter-to-quarter fluctuations, which have the potential to be significant in arriving at adjusted earnings and adjusted earnings per share. We also use free cash flow and free cash flow conversion of adjusted earnings as measures helpful to investors to evaluate the company's ability to generate cash and utilize that cash to pursue opportunities that enhance shareholder value. For those of you following along with our slide presentation, we'll begin on slide four. And now opening remarks from our Chairman and CEO, Brian Chambers, who will be followed by interim CFO, Prith Gandhi.

And then Brian will cover our outlook before our Q&A session. Brian?

Brian D. Chambers

Thanks, Scott. Good morning, everyone,