Sally Beauty Holdings Inc. (NYSE:SBH) Q3 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 08:30 am ET

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Sally Beauty Holdings Inc. (NYSE:SBH) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

[Technical Issues] [Operator Instructions]

I would now like to turn the conference over to Mr. Jeff Harkins. Please go ahead.

Executive
Jeff Harkins

Thank you. Good morning, everyone, and welcome to the Sally Beauty Holdings Third Quarter Earnings Conference Call. Before we begin, I will remind everyone that we have made a presentation available for today's call that can be viewed from the link provided on our investor site at sallybeautyholdings.com/investorrelations. In addition, given the impact of COVID-19 and consistent with our recent disclosures, we will be providing limited supplemental disclosure for some operating and financial metrics for the months of April, May and June within the quarter.

I would also like to remind you that certain comments, including matters such as forecasted financial information, contracts or business and trend information made during this call may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended.

Many of these forward-looking statements can be identified by the use of words such as believe, project, expect, can, may, estimate, should, plan, target, intend, could, will, would, anticipate, potential, confident, optimistic and similar words or phrases. These statements are subject to a number of factors that could cause actual results to differ materially from expectations. Those factors are described in Sally Beauty Holdings' filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K. The Company does not undertake any obligation to publicly update or revise its forward-looking statements. The Company has provided a detailed explanation and reconciliations of its adjusting items and non-GAAP financial measures in its earnings press release and on its website.

With me on the call today are Chris Brickman, President and Chief Executive Officer; Aaron Alt, President of Sally Beauty Supply and Chief Financial Officer; and Marlo Cormier, Senior Vice President of Finance and Chief Accounting Officer. Chris will start by offering thoughts on our third quarter as well as why Sally Beauty Holdings is uniquely positioned to take advantage of consumer trends, respond with agility to the COVID environment and generate cash. Aaron will then discuss our third quarter consolidated and segment financial results, touch on our liquidity and provide some perspective on our fourth quarter. Finally, Chris, Marlo, Aaron and I will be available for your questions.

Now, I'd like to turn the call over to Chris.

Executive
Christian A. Brickman

Thank you, Jeff, and good morning, everyone. What an incredible couple of months it has been. On our last earnings call, we spent time highlighting our aggressive response to the COVID-19 pandemic, the successes earlier in the second quarter on our transformation initiatives and the positive comps our business experienced prior to the onset of COVID.

During that May call, we also highlighted our views of changes to consumer behavior, the recession-resistant nature of our categories in our company and our aggressive efforts to reduce cash burn and to tap additional sources of liquidity. Since our last earnings call,