Hanesbrands Inc.

Ladies and gentlemen, thank you for standing by, and welcome to the Haynes Brand's fourth quarter 2020 earnings conference call. At this time, all participant lines are in listen-only mode, so if you require operator assistance, please press star, then zero. After the presentation, there will be a question and answer session. To ask a question during the session, you will need to press star, then one. Please be advised that today's conference may be recorded. I'd now like to turn the conference over to your host today, Mr. T.C. Robillard, Chief Investor Relations Officer. Please go ahead.

Good day, everyone, and welcome to the Haynes Brands quarterly investor conference call and webcast. We are pleased to be here today to provide an update on our progress after the fourth quarter of 2020. Hopefully, everyone has had a chance to review the news release we issued earlier today. The news release, updated FAQ document, and the replay of this call can be found in the investor section of our Haynes.com website. On the call today, we may make forward-looking statements, either in our prepared remarks or in the associated question and answer session. These statements are based on current expectations or beliefs and are subject to certain risks and uncertainties that may cause actual results to differ materially. These risks include those related to the impact of the COVID-19 pandemic and measures taken by governmental or regulatory authorities to combat the pandemic on our business and operations, as well as the business and operations of the consumer, our customers, suppliers, business partners, and labor force. These risks also include those detailed in our various filings with the SEC, which may be found on our website, as well as in our news releases. The company does not undertake to update or revise any forward-looking statements, which speak only to the time at which they are made. Unless otherwise noted, today's references to our consolidated financial results and guidance exclude all restructuring and other action-related charges. The use of the term PPE relates to our personal protection garment business, including face masks, face coverings, and gowns. Also, please note that unless otherwise stated, all prior year comparisons are to 2019 results that have been rebased to reflect the exited C-9 program at Target and the DKNY Intimates License. Additional information, including a reconciliation of these and other non-GAAP performance measures to GAAP, can be found in today's press release. With me on the call today are Steve Bradsbys, our Chief Executive Officer, and Scott Lewis, our Chief Accounting Officer and Interim Chief Financial Officer. For today's call, Steve and Scott will provide some brief remarks, and then we'll open it up to your questions. I will now turn the call over to Steve. Thank you, TC.

Good morning, everyone, and welcome. It's hard to believe it has been a year since the pandemic began, and I hope you and your families are staying safe and healthy. To that end, I want to begin by thanking the entire Hanes Brands team around the world for its ongoing dedication, hard work, and focus on safety and service. I'm extremely proud of how much the team has accomplished over the past year, especially under such challenging circumstances. I'm excited to speak with you today to provide an update on the progress we've made since our last call. We're going to center the conversation on two main topics. First, our execution and the financial results in the fourth quarter that drove a strong finish to the year. Second, is the launch of our multi-year growth strategy, which we're calling our full potential plan. That's being developed out of the strategic assessment I outlined last quarter. First, in terms of the fourth quarter, we delivered solid results as revenue, operating profit, earnings per share, and operating cash flow all came in above our expectations. despite the increasingly unpredictable environment. We experienced strong consumer demand for our brands and products around the world, which drove market share gains in a number of categories, including U.S. basics and U.S. instruments. We also saw revenue momentum continue to build across our three largest businesses. In U.S. Interware, we delivered another quarter of above-category growth, with sales, excluding PPE, increasing 16 percent over prior year. We're also pleased with the global performance of our Champion brand during the quarter. On a constant currency basis, global Champion sales increased 11% over prior year. And outside of the COVID challenge sports and college licensing business, global sales were up 18% in the quarter. In the international, along with Champion's strong performance, constant currency sales in our Australian innerwear business increased 8% over prior year. Now, turning to the second topic. We've made significant progress on our growth strategy. Since our last call, we've defined our growth drivers. We've identified the strategic initiatives needed to unlock growth and improve productivity, and we began the early implementation of our full potential plan. It was clear from our analysis of the business that simplification is critical to our future growth. It will make us faster, it will lower costs, and it will focus resources. Specific actions that we've initiated over the past few months as we began to implement our full potential plan include portfolio streamlining and SKU rationalization. I'd like to briefly touch on both of these. First, we're streamlining our portfolio to increase our business focus and improve future returns. Specifically, we're exploring strategic alternatives for our European interware business. While we are in the very early stages, we're committed to being transparent and will provide updates as we move through the process. We're also moving on from PPE. It's encouraging to see that COVID vaccines are rolling out around the world. As a result, this rollout along with slowing retail orders and a flood of competitive offerings have dramatically reduced our future sales opportunities. Therefore, we do not view PPE as a future growth opportunity for the company. The second action we've taken to simplify our business is rationalizing our SKUs. Based on the inventory review that we discussed on our last call, we're removing 20% of our SKUs while also implementing a formal product lifecycle management process. This will heighten our product design and consumer focus, as well as streamline our product offerings, which in turn should lower costs, improve in-stocks, and drive sales of higher volume, higher margin SKUs. As a result of these actions, we've made the difficult but important decision to write down our entire PPE inventory-related balance. as well as the inventory tied to our SKU rationalization. Scott will provide more detail on this during his review of our financial results. As I mentioned last quarter, our goal is to become a consumer-centric growth company, one that generates higher and more consistent revenue growth while also delivering higher levels of profitability over time. Our full potential plan is the blueprint to accomplish this goal. As you can see, we are moving forward with purpose and with urgency. We've already taken action, and we're focused on executing our full potential plan. I look forward to sharing more details about this shortly, but first I will turn the call over to Scott for a review of our results and our first quarter guidance. Scott?