Richelieu Hardware Ltd. Q2 2010 Earnings Conference Call Transcript - Thomson StreetEvents

Richelieu Hardware Ltd. Q2 2010 Earnings Conference Call Transcript

10 pages (4874 words) — Published Jul 08, 2010
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Abstract:

Final Transcript of RCH.TO earnings conference call or presentation, 8-Jul-10 2:30pm ET

  
Brief Excerpt:

...Anthony Zicha Scotia Capital - Analyst Shane Leech-Porter TD Securities - Analyst Benoit Caron National Bank Financial - Analyst...

  
Report Type:

Transcript

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Company:
Ticker
RCH.TO
Time
2:30pm ET
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The following is excerpted from the question-and-answer section of the transcript.

(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)

Question: Anthony Zicha - Scotia Capital - Analyst: Hi. Good afternoon, gentlemen. In terms of your EBITDA margins can you give us a good sense of how much expansion came from the boost in sales versus cost control initiatives? I want to get a sense of how sustainable the margins are moving forward.

Answer By: Richard Lord - Richelieu Hardware Ltd. - President, CEO


Question: Anthony Zicha - Scotia Capital - Analyst: Okay. And in terms of the US market, this is the first time we see strength in a while. Are we see any signs that the strength is sustainable moving into Q3. Are we losing momentum?

Answer By: Richard Lord - Richelieu Hardware Ltd. - President, CEO


Question: Anthony Zicha - Scotia Capital - Analyst: In terms of the product mix, are we seeing any continued shift to private label or are price points coming down?

Answer By: Richard Lord - Richelieu Hardware Ltd. - President, CEO


Question: Anthony Zicha - Scotia Capital - Analyst: One last question. What is the sales growth in eastern Canada versus western Canada.

Answer By: Richard Lord - Richelieu Hardware Ltd. - President, CEO


Question: Anthony Zicha - Scotia Capital - Analyst: Okay. Thank you very much, Richard.

Answer By: Richard Lord - Richelieu Hardware Ltd. - President, CEO


Question: Shane Leech-Porter - TD Securities - Analyst: Great. Thanks very much for taking my question. Hi. Congratulations on the great quarter. Just want to circle back on the margins again. Just so I am clear, you are thinking that more sustainable rate right now on an annual basis closer to 4%?

Answer By: Richard Lord - Richelieu Hardware Ltd. - President, CEO


Question: Shane Leech-Porter - TD Securities - Analyst: So with the strong margins this quarter, I know you mentioned the Canadian dollar, was that a large portion of it?

Answer By: Richard Lord - Richelieu Hardware Ltd. - President, CEO


Question: Shane Leech-Porter - TD Securities - Analyst: On the top line with the exceptional organic growth, I think I heard that Ontario was 17% or something. I am just trying to figure out if if there's anything in particular that really drove Q2 growth or again circling back from prior questions, trying to get a sense of how sustainable the growth is, how are things looking into next quarter.

Answer By: Richard Lord - Richelieu Hardware Ltd. - President, CEO


Question: Shane Leech-Porter - TD Securities - Analyst: I guess in Canada this low double digit organic growth, can we assume this is continuing going forward, at least in the next coming quarters?

Answer By: Richard Lord - Richelieu Hardware Ltd. - President, CEO


Question: Shane Leech-Porter - TD Securities - Analyst: Okay, and one last one before I circle back. On the acquisitions you expect to close later this year, I guess I am just trying to understand with the due diligence, is it fair for us to assume that they will close, can I put a probability on them closing near the end of August, September?

Answer By: Richard Lord - Richelieu Hardware Ltd. - President, CEO


Question: Shane Leech-Porter - TD Securities - Analyst: Okay. Thanks. I will circle back. Thank you.

Answer By: Richard Lord - Richelieu Hardware Ltd. - President, CEO


Question: Benoit Caron - National Bank Financial - Analyst: Yes. Thank you. Good afternoon, everyone. Richard ,just briefly, I was wondering can you update us on the internet sales portal and now the initiative is going, how up are you on the month and how is it tracking so far year-to-date.

Answer By: Richard Lord - Richelieu Hardware Ltd. - President, CEO


Question: Benoit Caron - National Bank Financial - Analyst: And when you make an acquisition considering that some product lines might not be totally harmonized with what you've got, how long does it take for you guys to integrate it with your internet sales portal?

Answer By: Richard Lord - Richelieu Hardware Ltd. - President, CEO


Question: Benoit Caron - National Bank Financial - Analyst: No more than that?

Answer By: Richard Lord - Richelieu Hardware Ltd. - President, CEO


Question: Benoit Caron - National Bank Financial - Analyst: Okay. Well, that's good. That's all I had. Keep up the good work. Thank you.

Answer By: Richard Lord - Richelieu Hardware Ltd. - President, CEO


Question: Shane Leech-Porter - TD Securities - Analyst: Okay. Thank you. I just had a few more follow up questions. Again on the acquisitions, these companies, do they have lower margins than your legacy operations? Are these --

Answer By: Richard Lord - Richelieu Hardware Ltd. - President, CEO


Question: Shane Leech-Porter - TD Securities - Analyst: Okay. And these are expected to be paid for with cash on hand, versus using debt?

Answer By: Richard Lord - Richelieu Hardware Ltd. - President, CEO


Question: Shane Leech-Porter - TD Securities - Analyst: With these do you feel your plate is full for this year or do you think --

Answer By: Richard Lord - Richelieu Hardware Ltd. - President, CEO


Question: Shane Leech-Porter - TD Securities - Analyst: Of course. As far as more acquisitions this year, do you think that these three would be pretty much it, or is there other stuff? ¬2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by

Answer By: Richard Lord - Richelieu Hardware Ltd. - President, CEO


Question: Shane Leech-Porter - TD Securities - Analyst: Fair enough. Last couple, can you provide the typical break down of sales manufacturers.

Answer By: Richard Lord - Richelieu Hardware Ltd. - President, CEO


Question: Shane Leech-Porter - TD Securities - Analyst: Great. Just lastly I saw in the press release you had a retirement allowance for yourself. Just trying to understand, I don't know how to ask but is a succession process, can I read into that succession process is under way or is there anything you are willing to talk about there?

Answer By: Richard Lord - Richelieu Hardware Ltd. - President, CEO


Question: Shane Leech-Porter - TD Securities - Analyst: Perfect. Thanks very much. That's all I had.

Answer By: Richard Lord - Richelieu Hardware Ltd. - President, CEO

Answer By: Richard Lord - Richelieu Hardware Ltd. - President, CEO

Table Of Contents

Richelieu Hardware Ltd Q3 2011 Earnings Conference Call Transcript – 2011-10-06 – $54.00 – Final Transcript of RCH.TO earnings conference call or presentation 6-Oct-11 6:30pm GMT

Richelieu Hardware Ltd Q2 2011 Earnings Conference Call Transcript – 2011-07-07 – $54.00 – Final Transcript of RCH.TO earnings conference call or presentation 7-Jul-11 6:30pm GMT

Richelieu Hardware Ltd Q1 2011 Earnings Conference Call Transcript – 2011-03-31 – $54.00 – Final Transcript of RCH.TO earnings conference call or presentation, 31-Mar-11 3:00pm ET

Richelieu Hardware Ltd. Q4 2010 Earnings Conference Call Transcript – 2011-01-27 – $54.00 – Final Transcript of RCH.TO earnings conference call or presentation, 27-Jan-11 2:30pm ET

Richelieu Hardware Ltd. Q3 2010 Earnings Conference Call Transcript – 2010-09-30 – $54.00 – Final Transcript of RCH.TO earnings conference call or presentation, 30-Sep-10 2:30pm ET

Richelieu Hardware Ltd. Q1 2010 Earnings Conference Call Transcript – 2010-03-25 – $54.00 – Final Transcript of RCH.TO earnings conference call or presentation, 25-Mar-10 3:00pm ET

Richelieu Hardware Ltd. Q4 2009 Earnings Conference Call Transcript – 2010-01-28 – $54.00 – Final Transcript of RCH.TO earnings conference call or presentation, 28-Jan-10 2:30pm ET

Richelieu Hardware Ltd. Q3 2009 Earnings Conference Call Transcript – 2009-10-01 – $54.00 – Final Transcript of RCH.TO earnings conference call or presentation, 1-Oct-09 2:30pm ET

Richelieu Hardware Ltd. Q2 2009 Earnings Conference Call Transcript – 2009-07-09 – $54.00 – Final Transcript of RCH.TO earnings conference call or presentation, 9-Jul-09 2:30pm ET

Richelieu Hardware Ltd. Q1 2009 Earnings Conference Call Transcript – 2009-03-26 – $54.00 – Final Transcript of RCH.TO earnings conference call or presentation, 26-Mar-09 3:00pm ET

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Thomson StreetEvents. "Richelieu Hardware Ltd. Q2 2010 Earnings Conference Call Transcript" Jul 08, 2010. Alacra Store. Sep 01, 2014. <http://www.alacrastore.com/thomson-streetevents-transcripts/Q2-2010-Richelieu-Hardware-Ltd-Earnings-Conference-Call-T3191173>
  
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