Fortune Brands Home & Security, Inc. (NYSE:FBHS) Q2 2020 Earnings Conference Call - Final Transcript

Jul 29, 2020 • 04:30 pm ET


Fortune Brands Home & Security, Inc. (NYSE:FBHS) Q2 2020 Earnings Conference Call - Final Transcript


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Good afternoon. My name is Jason, and I will be your conference operator today. At this time, I would like to welcome everyone to the Fortune Brands Second Quarter 2020 Earnings Conference Call. [Operator Instructions] Thank you.

I would now like to turn the call over to Mr. Brian Lantz, Senior Vice President of Communications and Corporate Administration. You may begin your conference call.

Brian Lantz

Good afternoon, everyone, and welcome to the Fortune Brands Home & Security's Second Quarter 2020 Investor Conference Call and Webcast. Hopefully, everyone has had a chance to review the news release issued earlier. The news release and the audio replay of the webcast of this call can be found in the Investors section of our website. I want to remind everyone that the forward-looking statements we make on the call today, either in our prepared remarks or in the associated question-and-answer session, are based on current expectations and the market outlook and are subject to certain risks and uncertainties that may cause actual results to differ materially from those currently anticipated.

These risks are detailed in our various filings with the SEC, such as our annual report on 10-K and our most recent 10-Q. The company does not undertake to update or revise any forward-looking statements, which speak only to the time at which they are made. Any references to operating profit, earnings per share or cash flow on today's call will focus on our results on a before charges and gains basis unless otherwise specified. With me on the call today are Nick Fink, our Chief Executive Officer; and Pat Hallinan, our Chief Financial Officer. Following our prepared remarks, we will allow some time to address questions that you may have.

I will now turn the call over to Nick.

Nicholas Fink

Thank you, Brian, and thanks to everyone for joining us today. We hope you and your loved ones are all staying safe during these extraordinary and challenging times. I'm very pleased that we delivered strong sales and profit results through a historically turbulent quarter. Against the backdrop of a relatively resilient housing market, excellent operational execution by our teams resulted in our businesses operating at a high level of efficiency in the face of enormous headwinds. First of all, I want to thank all of our dedicated team members who worked so hard in such a challenging environment to keep our people safe and our facilities open. I'm inspired by the care our employees are showing for each other and within our operations. I'm also proud that we've been able to continue to serve our customers with essential products as families sheltered at home.

As the shelter-in-place orders took hold, we saw a noticeable shift in consumer behavior towards home purchase and home improvement that I will discuss in more detail. Given the varying impact of the shutdowns on our channel and supply chains, we saw strength in some parts of our product offerings, ahead of expectations, while other parts performed as we had anticipated.