Franchise Group, Inc. (NASDAQ:FRG) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 08:30 am ET

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Franchise Group, Inc. (NASDAQ:FRG) 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 Franchise Group's Second Quarter Conference Call. [Operator Instructions]

I would now like to hand the conference over to your host, Andrew Kaminsky, Executive Vice President and Chief Administrative Officer of Franchise Group.

Executive
Andrew F. Kaminsky

Thank you, Hilda. Good morning and thank you for joining our conference call. I'm on the call with Brian Kahn, Franchise Group's President and CEO; and Eric Seeton, Franchise Group's CFO. Before getting started, I'd like to mention that certain matters discussed on this call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other provisions of the federal securities laws. These forward-looking statements are based on management's current expectations and are not guarantees of future performance. Actual results could differ materially from those expressed in or implied by the forward-looking statements.

The forward-looking statements are made as of the date of this call and except as required by law, Franchise Group assumes no obligation to update or revise them. Investors are cautioned not to place undue reliance on these forward-looking statements. For more detailed discussion of these and other risks and uncertainties that could cause Franchise Group's actual results to differ materially from those indicated in the forward-looking statements, please see our Form 10-KT for the fiscal year end, December 28, 2019 and other filings we make with the SEC.

The financial measures discussed today include non-GAAP measures that we believe investors focus on in comparing results between periods and among peer companies. Please see our earnings release and the news and events section of our website at franchisegrp.com for reconciliation of non-GAAP financial measures to GAAP measures.

Non-GAAP financial information should not be considered in isolation from as a substitute for or superior to GAAP financial information, but included because management believes that it provides meaningful supplemental information regarding our operating results when assessing our business and is useful to investors for informational and comparative purposes. The non-

GAAP financial measures the Company uses have limitations and may differ from those used by other companies.

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

Executive
Brian R. Kahn

Thanks, Andrew. Good morning and thank you for joining us today. I will briefly walk you through the highlights of the second quarter and current trends in our markets and businesses before turning the call over to Eric to discuss our second quarter results and then we will be happy to answer questions.

Despite the pandemic Franchise Group's overall financial performance has remained strong. Since we closed on our most recent acquisition of American Freight February, our cash flow has allowed us to retire over $70 million of debt and pay over $17 million of dividends and distributions to our shareholders. Thanks to the strong financial performance of our current brands, our shareholders have further supported us and our pursuit of additional businesses through a recent underwritten public equity raise of approximately $106 million through an upside following offering of common