Formatted Reports1.q4cdn.com/274414510/files/financial_statements/...President, Chief Executive...

Formatted Report

1-877-FACTSET www.callstreet.com

Total Pages: 23 Copyright © 2001-2019 FactSet CallStreet, LLC

07-Feb-2019

Masco Corp. (MAS)

Q4 2018 Earnings Call

Masco Corp. (MAS) Q4 2018 Earnings Call

Formatted Report 07-Feb-2019


2 Copyright © 2001-2019 FactSet CallStreet, LLC

CORPORATE PARTICIPANTS

David Chaika Vice President, Treasurer & Investor Relations

Keith J. Allman President, Chief Executive Officer & Director

John G. Sznewajs Chief Financial Officer & Vice President

......................................................................................................................................................................................................................................................

OTHER PARTICIPANTS

Kenneth R. Zener KeyBanc Capital Markets, Inc.

Michael Jason Rehaut JPMorgan Securities LLC

Michael Wood Nomura Instinet

Scott Schrier Citigroup Global Markets, Inc.

Justin Andrew Speer Zelman & Associates

Nishu Sood Deutsche Bank Securities, Inc.

Stephen Kim Evercore Group LLC

Michael Dahl RBC Capital Markets LLC

Matthew Bouley Barclays Capital, Inc.

Susan Maklari Credit Suisse Securities (USA) LLC

......................................................................................................................................................................................................................................................

MANAGEMENT DISCUSSION SECTION

David Chaika Vice President, Treasurer & Investor Relations

FINANCIAL MEASURES ................................................................................................................................................................................................

Our statements will also include non-GAAP financial measures

Our references to operating profit and EPS will be as-adjusted, unless otherwise noted

We reconcile these adjusted measurements to GAAP in our earnings release and presentation slides,

which are available on our website under Investor Relations ......................................................................................................................................................................................................................................................






Q4 FINANCIAL HIGHLIGHTS ................................................................................................................................................................................

Sales

Turning to slide 4, in Q4, our top line increased 11% excluding the impact of currency, driven by strong

growth in our North American plumbing operations, the benefit of our Kichler acquisition, and strong

growth in paint

o Excluding the impact of currency, acquisitions and divestitures, sales grew 5%

Operating Profit and Margins

Operating profit grew $58mm or 23% due to increased volume, continued cost control, and improved

price realization

o As a result, operating margins for the quarter expanded 150BPS to 15.4%

EPS and Share Repurchases

Our EPS increased 56% due to improved operating earnings, a lower tax rate, and lower share count

We repurchased 9.6mm shares for $300mm in the quarter, a significant increase in our repurchase

activity compared to prior quarters

We were pleased with our fourth quarter performance

FY2018 FINANCIAL HIGHLIGHTS ...................................................................................................................................................................

Turning to slide 5, for the full year of 2018, we overcame significant inflation and delivered strong sales,

operating profit, and EPS growth for the full year

This growth was driven by solid consumer demand, healthy end markets, and our continued focus on

executing our growth and capital allocation strategies to deliver shareholder value

Sales

Sales for 2018 increased 9%

Excluding the impact of currency, acquisitions, and divestitures, sales grew 5%

This growth was driven by record sales years for five of our business units:

o Behr Paint

o Delta Faucet

o Hansgrohe

o Watkins Wellness

o And Liberty Hardware

Operating Profit and EPS

Operating profit grew 6% despite significant inflationary headwinds, demonstrating our ability to manage

our costs and successfully implement price to offset raw material and other inflation

EPS increased 29% in 2018 due to a lower tax rate of 25%, increased operating earnings, lower share

count, and lower interest expense





SEGMENT HIGHLIGHTS ............................................................................................................................................................................................

Plumbing

Turning to our segments, Plumbing continued its strong performance in 2018

Delta gained share with its Brizo brand in showrooms, its opening price point Peerless brand at retail, and

we saw strength across all channels of distribution including:

o Wholesale

o Retail

o And e-commerce

Notably, Delta achieved a record year and successfully implemented a company-wide ERP system

Hansgrohe’s success was driven by growth in China and Germany, offsetting softer conditions in certain

other countries

Watkins, our leading spa business, had an outstanding year with strong performance in its core dealer

network and retail channel, and healthy sales of its aquatic fitness systems

Decorative Architectural Products

In our Decorative Architectural Products segment, the acquisition of Kichler Lighting early in the year

significantly increased sales

We’ve integrated Kichler into our Masco enterprise and we’ll continue to drive value in 2019 by leveraging

Kichler’s product portfolio with existing and new customers, realizing further operational improvements

and optimizing its brand and go-to-market capabilities

Our pro paint initiative grew high-single digits for the full year, and we continued to invest in this large

opportunity along with our partner, The Home Depot

o Pro paint now represents about 25% of our coatings revenue, and we expect to continue to drive

high-single digit growth in the pro paint market in 2019

In the DIY market, we are well-positioned with the leading brand, the highest quality products, and a great

team of people, and expect to continue to outgrow the DIY market in 2019

Cabinetry

Turning to Cabinetry, we returned to top line growth in 2018 with strong 7% growth excluding the

divestiture of Moores

Our repair and remodel cabinet business grew double digits in 2018, aided significantly by our new

program win with Menards

This growth, together with our business shift over the past several years, has resulted in 70% of our sales

in this segment now driven by the repair and remodel market, up from approximately 60% two years ago

Windows Business

In our Windows business, sales grew 1% for the full year excluding currency and our divestiture of Arrow

Fasteners

We achieved mid-single digit growth in our U.S. business, while our UK business was challenged with

lower demand

o We took action in the UK to restructure and right-size our operations during the year to match the

current level of demand





CASH FLOW AND BALANCE SHEET SUMMARY ..........................................................................................................................

From an overall Masco perspective, our strong growth generated over $800mm of FCF, for a more than

100% FCF conversion rate

Strong cash flow is a hallmark of Masco enabling us to drive shareholder value through reinvesting in the

business, selectively pursuing acquisitions with the right fit and return

o And returning cash to shareholders through share repurchases and dividends

Capital Deployment and Shareholders Return

We deployed nearly $1.5B of capital during the year, consistent with our balanced capital allocation

strategy

We returned $654mm to shareholders through share repurchases, we deployed $549mm for the

acquisition of Kichler Lighting, and we increased our dividend for the fifth consecutive year all while

reducing debt by $106mm

o With this debt reduction and continued earnings growth, we finished 2018 with a very strong

balance sheet

Our net debt-to-EBITDA at year end was approximately 1.7 times

RECOGNITION.........................................................................................................................................................................................................................

Before turning to 2019, I’d like to thank our more than 26,000 employees, both here in North America

o As well as across the globe, for all of their efforts to help make 2018 another successful year for

Masco

2019 PROSPECTS ....................................................................................................................................................................................................................

Repair and Remodel Market

Now, turning to 2019, I’d like to share with you our view of the markets for the year

Consistent with many industry forecasters, we expect the repair and remodel market to grow in the mid-

single digit range in 2019, though slower than the rate of growth in 2018

New Construction and International Markets

For new construction, we are assuming a low-single digit growth rate due mainly to labor constraints and

affordability concerns, understanding that recent declines in mortgage rates could help alleviate some of

the affordability pressure

And for our International markets, principally Europe, we’re expecting a low-single digit growth

environment

Tariffs

With regards to tariffs, our assumption is that the List 3 Tariffs will increase to 25% on March 1

We previously shared with you that the impact of these tariffs on Masco is less than the raw material and

other inflation we effectively dealt with in 2018

As a reminder, the 25% tariffs represent approximately $150mm of annual inflation or approximately 2.7%

of cost of goods sold





o However, it remains to be seen what the impact these subsequent price increases will have on

consumer demand

Sales, Margins and EPS

Based on these assumptions, we expect:

o Sales growth in the range of 3% to 5% excluding currency

o Margins to be similar to 2018 as we offset tariffs with supply chain initiatives, other internal

productivity measures and price

o And EPS to be in the range of $2.60 to $2.80

Capital Deployment

With our strong balance sheet, we will continue our balanced capital allocation strategy and intend to

deploy approximately $600mm towards share repurchases in 2019 ......................................................................................................................................................................................................................................................

John G. Sznewajs Chief Financial Officer & Vice President

Q4 P&L RESULTS ...................................................................................................................................................................................................................

As Dave mentioned, most of my comments will focus on adjusted performance excluding the impact of

rationalization charges, the inventory step-up related to purchase accounting for the Kichler acquisition,

and other one-time items

Sales

Turning to slide 7, we finished the year strong

Fourth quarter sales increased 10% or 11% in local currency

o Excluding acquisitions and divestitures, sales increased 4% or 5% in local currency

Currency translation unfavorably impacted sales in the quarter by approximately $19mm

In local currency, North American sales increased 14% in the quarter or 6% excluding acquisitions and

divestitures

o In local currency, international sales matched prior year in the quarter and increased 2%

excluding our divestiture of Moores in Q4 2017

SG&A Operating Income and Margins

SG&A as a percent of sales decreased 190BPS to 16.9% in Q4 due to leverage on volume, lower

promotional spend, and cost containment

We delivered solid bottom line performance, as operating income increased 23% in the quarter and

margins expanded 150BPS to 15.4%

EPS

For Q4, our EPS increased 56% to $0.64

I would like to note, this performance was calculated based on a normalized tax rate of 25% vs. the

previously guided 26% tax rate





o This change in our tax rate was driven by the issuance of recent IRS regulatory guidance

regarding certain provisions of the new tax code

Due to this change, we have provided restated adjusted EPS numbers for each quarter of 2018 in the

appendix on slide 23

Fourth quarter EPS was favorably impacted more than expected by approximately $0.05, consisting of an

approximately $0.03 benefit from the pull-forward of sales in the Plumbing and Decorative segments,

$0.01 due to the lower normalized tax rate of 25%, and $0.01 due to the gain on an asset sale in the

Decorative segment

FY2018 P&L RESULTS......................................................................................................................................................................................................

Sales

Turning to the full year 2018, sales increased 9%

o Excluding the acquisitions and divestitures, full-year sales increased 5%

Currency translation favorably impacted the full-year results by $47mm

In local currency, North American sales increased 11% for the full year or 6% excluding acquisitions and

the Arrow divestiture

Our North American teams executed well, driving solid revenue growth, as our strong brands, innovative

products, and broad product assortment continued to resonate with designers and consumers

In local currency, international sales declined 2% for the full year or increased 1% excluding the Moores

divestiture

o While we experienced some international market softness in 2018, mainly in the UK, our

international Hansgrohe Plumbing business continued to drive growth

SG&A and Operating Income

Our SG&A as a percent of sales decreased 90BPS to 17.7% for the full year, as we continued to leverage

our volume and control our costs

Full-year operating income increased $67mm or 6%, with operating margins of 15.1%

EPS

Lastly, our EPS increased 29% to $2.50 for the full year

Compared to our prior 2018 EPS guidance, the $2.50 in EPS includes the aggregate $0.04 EPS benefit

of the sales pull-forward and the gain on the sale of the building in Q4, and $0.03 full-year EPS benefit

from the normalized tax rate of 25%, down from our previously guided 26% tax rate

o Our adjusted EPS calculation will continue to assume a 25% normalized tax rate for 2019

PLUMBING SEGMENT BUSINESS ....................................................................................................................................................................

Q4 Results

SALES

Turning to slide 8, our Plumbing segment had a strong finish to the year, and sales in the quarter

increased 6% excluding the impact of currency

o This was driven by strong growth in our faucet, shower, and spa businesses





Q4 benefited from approximately $10mm of pull-forward sales from Q1 of 2019, while currency negatively

impacted sales by approximately $16mm in the quarter

North American sales increased 8% in local currency, as we experienced strong demand from our

wholesale, retail, dealer, and e-commerce customers

o Additionally, our spa business continued to outperform by achieving a record fourth quarter with

its innovative new products and industry-leading brands

Our international sales in Q4 grew 3% in local currency, rebounding from a soft third quarter

Hansgrohe’s focus on key markets drove this performance, as they experienced strong growth in

Germany and China

OPERATING PROFIT

Operating profit in the quarter increased 11% due to incremental volume, lower spending, and a neutral

price/cost relationship

FY2018 Results

SALES

Turning to the full year 2018, sales increased 6% in local currency

This strong growth was driven by record years at Delta, Hansgrohe, and Watkins

North American sales grew 8% in local currency, as we experienced strong growth across all channels

and price points during the year

Our international Plumbing sales increased 2% in local currency, as Hansgrohe’s performance continued

to benefit from their investments in brand, design, and innovation

OPERATING PROFIT

Full-year operating profit grew 3% due to volume growth, partially offset by the price/cost lag we

experienced in the first three quarters of the year, mix, and other expenses such as ERP spending

Business Outlook

For 2019, we expect the Plumbing segment’s sales growth to be in the 3% to 5% range excluding

currency, with margins similar to 2018, as we implement price to offset the impacts of the proposed tariffs

o Also, given year-end currency exchange rates, we expect 2019 revenue will be unfavorably

impacted by approximately $65mm, principally in the first and second quarters

o This unfavorable currency exchange results in negative EPS impact of approximately $0.01 per

quarter in each of Q1 and Q2 2019

In addition, depreciation and amortization in this segment will approximate $20mm per quarter due to

increased capital investments in 2018

We also anticipate an additional $5mm of expense in Q1, as we will be exhibiting at ISH, the large

biennial European plumbing trade show





DECORATIVE ARCHITECTURAL PRODUCTS RESULTS ....................................................................................................

Q4 Results

SALES

Turning to slide 9, the Decorative Architectural Products segment grew 30% in Q4

Excluding the acquisition of Kichler, sales grew 8%, as we experienced strong double-digit growth in our

core DIY products and high single-digit growth in pro

Behr’s strong DIY performance was aided by approximately $20mm of sales pulled forward from Q1 2019

due to increased year-end customer purchases to achieve incentives

OPERATING INCOME

Operating income increased 42% in the quarter, aided by the Kichler acquisition, increased volume, an

improvement in the price/cost relationship, cost control, and $4mm gain on the sale of a building

FY2018 Results

SALES

Full year sales grew 20%

o Excluding the acquisition of Kichler, sales grew 5%

The solid performance was driven by our Behr pro initiative as we achieved high-single digit growth and

continued to grow share with the pro

o While this pro growth is slightly lower than our previously guided double-digit growth expectation,

we are pleased with this performance considering the slowdown in the overall coatings market

Together with The Home Depot, we will continue to invest in and capitalize on this significant growth

opportunity

The solid sales growth in 2018 was also attributable to Liberty Hardware’s continued share gains from

successful new product introductions and program wins in the retail channel

OPERATING INCOME

Full year operating income increased 13%, principally due to the acquisition of Kichler, and improvement

in a – and improvement in the price/cost relationship and lower spending

Q1 2019 Guidance

For Q1 2019, we expect segment operating margins to be down approximately 200BPS

This margin erosion in Q1 is driven by:

o The $20mm of sales pulled forward into Q4 2018, both sequential and y-over-y commodity

inflation

o Additional investment in our pro paint initiative

o The full quarter impact of Kichler

o And an increase in depreciation and amortization to approximately $12mm per quarter





FY2019 Guidance

For the full year 2019, we expect sales growth in this segment to be in the 4% to 6% range including the

benefit of approximately two months from the Kichler acquisition

o And operating margins to be between 17% and 18%

CABINETRY BUSINESS ..................................................................................................................................................................................................

Q4 Results

Turning to slide 10, in the Cabinetry segment, excluding the Moores divestiture, sales increased 4% in Q4

and 7% for the full year

This solid performance was driven by our industry-leading brands, as we experienced double-digit growth

in our repair/remodel business in 2018

The Cardell program at Menards is performing well and we are pleased with its first year performance

o In addition, our new home construction business matched 2017

Segment profitability declined $1mm in the quarter and declined $8mm for the full year

Q4 performance was driven by increased logistics costs and mix, as we discussed on our third quarter

call

Full Year Profitability

Full year profitability was also impacted by logistics costs and mix in addition to the ramp-up costs related

to the Menards win

2019 Guidance

For 2019, we expect flat to low-single digit sales growth due to lower demand in the cabinet market

o And expect segment margins will be similar to 2018

WINDOWS BUSINESS RESULTS ........................................................................................................................................................................

Q4 Results

Turning to slide 11, in our Windows segment, sales decreased 1% in Q4 and declined 2% for the full year

o Excluding the sale of Arrow Fastener in Q2 2017 and FX, sales increased 1% for the full year

This performance was driven by Milgard, our leading Western U.S. Window business which grew low-

single digits in the quarter and mid-single digits for the full year

Milgard’s growth was due to favorable pricing and a positive mix shift toward our premium window and

door products

o This growth was partially offset by our UK window operation which continues to experience

market softness

Segment profitability in Q4 increased $4mm, but decreased $15mm for the full year

Fourth quarter profit (sic) [fourth quarter profit grew], due to favorable price/cost and mix

FY2018 Results

Full year performance was primarily driven by restructuring actions taken in the UK, and the increase in

Milgard’s warranty-related costs and inefficiencies in both the North American and UK operations





In Q1 2019, we will be implementing the ERP system at Milgard’s largest California facility

o As a result, we expect a modest operating loss due to lower volumes and the incremental ERP

costs in Q1

For full year, we expect low-single digit sales growth for this segment, excluding currency, with modest

margin improvement

BALANCE SHEET ..................................................................................................................................................................................................................

Turning to slide 12, our year-end balance sheet was strong with approximately $600mm of balance sheet

liquidity, as well as full availability of our $750mm revolving credit facility

Working Capital

Working capital as a percent of sales finished the year at 14%

While slightly higher due to the acquisition of Kichler, this performance continues to be some of the best

results in the industry

Shareholders Return

During 2018, we repurchased 18.6mm shares for approximately $654mm

We increased our quarterly dividend by 14% to $0.12 per share

We took further action in 2018 to strengthen our balance sheet by reducing debt by $106mm

o In addition, we now hold an investment-grade credit rating at Standard & Poor’s, Fitch, and

Moody’s

2019 GUIDANCE......................................................................................................................................................................................................................

Capital Allocation

Going into 2019, our disciplined capital allocation strategy is unchanged

We continue to prioritize investments in our businesses to drive organic growth

We will balance acquisitions with the right strategic fit and returns with share repurchases, and we will

maintain an appropriate dividend

We expect to deploy another $600mm for share repurchases in 2019 subject to market conditions

We are assuming a 290mm average share count for 2019

FCF

We generated $803mm of FCF in 2018, and expect to sustain our better than 100% FCF conversion rate

in 2019

EPS

Lastly, as Keith mentioned earlier, our 2019 EPS estimate is $2.60 to $2.80 per share

I’ve provided a lot of detail on our 2019 expected performance for each segment during my prepared

remarks.

o Please see slides 27 and 28 in the appendix of our earnings deck for a list of these assumptions ......................................................................................................................................................................................................................................................






2019 BUSINESS OUTLOOK .........................................................................................................................................................................................

Looking at 2019, while we believe that growth may moderate in 2019, the fundamentals of our business in

our core repair and remodel market are healthy

Consumer confidence and wages are growing

o This increases a consumer’s willingness to invest in their home

Home prices continue to appreciate

o This is highly correlated with repair and remodel spending

The age of the housing stock is increasing, with 50mm owned homes greater than 30 years old

o This drives increased remodeling spending

And household formations have steadily increased throughout 2018, driven by the millennial demographic

o This trend is projected to continue, fueling housing demand for the next decade

With our continued focus on executing our strategy, including investing in our leading brands, innovation

leadership, and operational excellence, coupled with our strong balance sheet and liquidity position, we

will continue to create shareholder value ......................................................................................................................................................................................................................................................

QUESTION AND ANSWER SECTION

Kenneth R. Zener KeyBanc Capital Markets, Inc. Q The 8% growth we saw in North America Plumbing, I was wondering if you could maybe expand on that a little bit.

And I’m just thinking of your Analyst Day in the past where you looked at faucets and shower heads, non-

decorative and other wellness, I just wanted to see how much dispersion there was between those different end

markets, if you could do that for the quarter and for the year just so we can get a sense of how those different

initiatives are working. ......................................................................................................................................................................................................................................................

Keith J. Allman President, Chief Executive Officer & Director A When you look at our North American plumbing market growth of 8%, we’re very pleased with that and we believe

that, that growth is higher than the overall market, so we think we are taking share there. So, we feel good about

that. When you think about our International Plumbing business, that’s an extremely diverse set of demands

spread over 135 countries, and it’s difficult to really nail down the market growth with that kind of aggregation. But

when you look at how Hansgrohe is performing, particularly in Central Europe, we’re happy with that. So, when

you look across the Plumbing group’s overall performance and where that growth was driven, there were some

good geographic dispersion, which we’re pleased with.

And then when you look further, as it relates to price point, we had some very good growth in the opening price

point driven the way we want it driven, meaning we launched new products to specifically address that price point:

the Peerless brand, for example; we’re seeing very good sales in our bathing and toilet categories, which tend to

be more opening or entry price point. But we also saw strong growth in our high-end brands of Axor and Brizo for

Delta and Hansgrohe, respectively. And we saw very good growth, as we talked in our prepared remarks, in our

spa business and our hot tub business. So, we’re seeing strong dispersed growth across both geographies, price





points, and across our full continuum of the portfolio. So, feel good about the growth and feel good about 2019 in

that segment. ......................................................................................................................................................................................................................................................

Kenneth R. Zener KeyBanc Capital Markets, Inc. Q Good. And then I was just looking at – the DIY paint seemed to grow – I mean grew low double digits. Was that

including the pull-forward, because I think there was some other commentary from some other producers about it

being kind of challenging, and it seems like you didn’t have the issue, if you could just expand on that? Thank you

very much. ......................................................................................................................................................................................................................................................

John G. Sznewajs Chief Financial Officer & Vice President A Ken, it’s John. No, first of all, the low-double digit growth rate does reflect or include the $20mm of sales that were

pulled forward out of Q1 and into Q4. So, yeah, that does help aid that growth rate a little bit. That said, we do

think that the overall coatings market in 2018 did slow a little bit. And so, we do feel like we’ve probably picked up

a little bit of share gain on the DIY side, not a ton. If you look at our overall growth rate for the full year, it was

definitely low-single digit. So, a little bit of tailwind there in Q4, but for the full year, low-single digit growth. ......................................................................................................................................................................................................................................................

Michael Jason Rehaut JPMorgan Securities LLC Q Congrats on the quarter and the year. The first question I had was, looking out to 2019, your sales growth outlook

of 3% to 5%. Obviously, by segment, you continue to execute a lot of market share gaining initiatives, such as pro

paint, your expansion in Plumbing et cetera. I was curious, it looked though that like the 3% to 5% was more of in

line with your market growth assumption. So, if that is indeed correct, I was just curious about how you think

about share gain opportunity in 2019 and if that’s reflected at all in your outlook. ......................................................................................................................................................................................................................................................

John G. Sznewajs Chief Financial Officer & Vice President A Mike, one of the things that did impact our guidance for the full year on the top line, the 3% to 5%, is effectively

we did have some of the pull-forward sales that impacted Q4. So, that $30mm we would have typically anticipated

hitting into 2019 pulled forward into 2018. But if you consider the markets that we are in, both the R&R market

which is growing kind of mid-single digit, 4% to 6% range, and kind of low-single digits for both new construction

and International, and if you consider the fact that, in particular, our Decorative Architectural segment we’ve got

growing low single digits. If you put that all together, there is some share gain baked in there. And so we do think

we’re growing ahead of markets. But overall, the markets are slowing a little bit for 2019. So I hope that captures

the essence of your question. ......................................................................................................................................................................................................................................................

Keith J. Allman President, Chief Executive Officer & Director A Mike, we’re seeing some good share gain opportunities to continue in our pro paint segment for sure. We have

real solid momentum in Plumbing and expect that to continue. And our offering as it relates to in-aisle service

product and brand, et cetera, we feel good about that in the DIY space. While that market is a little softer, we

believe it will be a little softer going into 2019. So there is share gain baked into our thinking. ......................................................................................................................................................................................................................................................

Michael Jason Rehaut JPMorgan Securities LLC Q





No, that’s good to hear. Thank you for that. I guess secondly, you mentioned that the List 3 25% tariffs are baked

into your outlook for the year, your EPS guidance. I just wanted to clarify that it still represents $150mm of

incremental headwind. And more broadly, if you could, just remind us of the overall outlook for incremental raw

material and tariff inflation in 2019 and how you expect to offset that between – if it’s possible to break it down

between price, productivity, and whatever other offsets you have. ......................................................................................................................................................................................................................................................

Keith J. Allman President, Chief Executive Officer & Director A That $150mm impact, Mike, is the right number, and we’ve talked about that before. Of course, there’s a

significant amount of moving parts and potential variability there. The 10% – does that stay, how much the 25%

goes in if everything – when it goes in, so I think it’s best to think about that as a very dynamic situation. And as

more certainty is revealed over time, we’ll be sure to share that with you and reflect that in our updates.

In terms of raws, without a doubt, tariff is the biggest uncertainty for 2019. We are assuming in our forecast that

the tariffs do jump up to 25% in March. When we look at other significant commodities, like copper and zinc, for

example, in plumbing, that has started to moderate in the back half of 2018. And we think that the level we’re at,

and we’re assuming that the level we are at in copper and zinc will continue into 2019, so there might be a

modest benefit there as we move on through the year.

In coatings, while TiO2 has moderated a bit, we are continuing to see significant pricing pressures in resins. And

in cabinets, plywood distribution and logistics, they remain elevated, but we think those are moderating. We think

those will hold where they are currently.

In terms of how we’re addressing it, certainly we’re making significant moves and decisions and doing a lot of

work on our supply chain. For example, we’ve reallocated, if you would, and moved over $30mm of plywood

purchases in our cabinet business to address countervailing duties and tariffs and the like. That’s just one

example. We’re looking at value engineering and cost out. We’re looking at productivity. We’re certainly looking at

other opportunities to move to other low-cost countries, and then price. And I think we’ve demonstrated the ability

to execute on all of those. ......................................................................................................................................................................................................................................................

Michael Wood Nomura Instinet Q First question, I just wanted to ask for some more color on the DIY gallon growth, and if you have any point-of-

sale trends that you could share with us in Q4. It looks like, as you mentioned, you’ve outperformed the market.

And if you could, provide some more color in terms of what’s driving some of that relative strength. ......................................................................................................................................................................................................................................................

John G. Sznewajs Chief Financial Officer & Vice President A So, Mike, in terms of – we really can’t get into POS. That’s not ours. We can’t give you too much of a read-

through. That said, gallon growth was flat to low single digits in Q4, so that’s where we stand there. We feel good

about that overall, meaning that’s a combination of both pro and DIY. So we continue to grow the pro side. The

DIY has been a little bit sluggish, but that’s been the case all of 2018, so that’s not necessarily new news. ......................................................................................................................................................................................................................................................

Keith J. Allman President, Chief Executive Officer & Director A I think in terms of what’s driving that DIY growth in the aisle, it’s a number of things. There’s no one silver bullet

there. Certainly, a big driver of it is our strong partnership with The Home Depot and the work we’re doing in the





aisle to convert foot traffic to cash paying sales to the consumer. The brand of Behr is extremely strong in the DIY

space and well-known. Our service levels, both in the store and in terms of delivery, are extremely strong. So that

combination of brand and service and a continued steady innovation pipeline is all part of our success in DIY. ......................................................................................................................................................................................................................................................

Michael Wood Nomura Instinet Q Great. Then some other building product companies that have reported have seen some destocking in fourth

quarter, notably Europe and U.S. retail. Did you see that in any of your segments? ......................................................................................................................................................................................................................................................

Keith J. Allman President, Chief Executive Officer & Director A There’s always a fluctuation with inventories at our customers. We did see a little bit of destocking in plumbing

wholesale, where we’ve had tremendous success, and that did slow down in that channel little bit in Q4. So there

was a little bit of destocking there. But then, we also had significant pull-ahead volume, which would obviously

equate to restocking. We talked about that $30mm impact over and across paint and plumbing. So really we did

not see what I would characterize as, any material destocking in our channels. ......................................................................................................................................................................................................................................................

Scott Schrier Citigroup Global Markets, Inc. Q I’m wondering if you could talk a little bit about if there was any impact on margins this quarter that might have

come from you pushing price to offset tariffs, and then we has the tariff delays, so if there’s any lag there that

caused a little bit of a margin tailwind there.

And then understanding that’s pretty uncertain, if tariffs don’t materialize or things turn out to be better than what

we hoped for, can you speak to the elasticity of pricing that you might have for some of those price increases that

you’re putting through? ......................................................................................................................................................................................................................................................

John G. Sznewajs Chief Financial Officer & Vice President A Sure, Scott. As it relates to the impact in the quarter due to pricing related to tariffs on margin, specifically to your

question, recall that what we’re trying to do or what we’re pursuing with price when we pursue price to offset the

tariff impact is just to recover the dollar amount of the tariff. So there’s not any incremental margin as a result of

the tariff pricing that we’re putting into place. And if anything, because we’re only recovering the dollar value of the

tariff, there actually is a slight potential for margin to decline because of that. So really no margin benefit there. I

forget the second part of the question. ......................................................................................................................................................................................................................................................

Keith J. Allman President, Chief Executive Officer & Director A Elasticity. In terms of elasticity, Scott, that’s really difficult to nail down when you look at the environment that

we’re in. Typically, the elastic studies that we do and information we have is based on – in the constant

environment if a particular product line goes up or down. With this kind of broad-based inflation across our

markets, it’s difficult to really peg that down specifically, but we are expecting that there would be some pull-back

in terms of demand in the categories that are affected. ......................................................................................................................................................................................................................................................

Scott Schrier Citigroup Global Markets, Inc. Q





Got it. And then in the last couple of quarters, I believe that you’ve mentioned that you are seeing strong trends in

terms of your ticket sizes. I’m curious if you anticipate that continuing or consistent with your comments about

some moderation in 2019 you would expect to see some – even ticket sizes moderate in an environment where

you have some uncertainty. And if so, is that built into your guidance? ......................................................................................................................................................................................................................................................

Keith J. Allman President, Chief Executive Officer & Director A Mix is a good story for us, Scott. We’re seeing good high-end growth in our higher priced bigger ticket items. I

talked a little bit about it in terms of some very high-end shower systems at Hansgrohe continued to do well. Our

spa business had a record year this year. So the high-end’s very strong, and it continues to be strong for us and

we expect that continuing into 2019.

We’re also increasing our revenue and our growth rate in the opening price point or in the low-end, and that’s by

design where we’ve launched specific products. I talked about Peerless, we’ve talked about bathing and some of

our toilets and vitreous China products. So, we’re also seeing growth there, and I think that’s a good story when

you have that kind of bimodal dispersion in your growth. The market is strong and new entries and new

homeowners are forming households, driving some of that opening price point, and we have products to cover

that. And then there’s the move-up phenomenon, we have products on the high-end. Now, while our lower-end

products tend to be a little bit lower margin over time, we’ve done work to close that gap, but they are lower

margin. And when you factor it all in how we’re looking at 2019, we’re really not anticipating mix being a material

impact. ......................................................................................................................................................................................................................................................

Justin Andrew Speer Zelman & Associates Q I had a couple of questions. One, just the broader corporate level SG&A, the management in the quarter was

excellent. And I just wanted to understand how much of that is temporal in nature and how to think about SG&A

as a percentage of revenues on a go-forward basis embedded in your guidance? ......................................................................................................................................................................................................................................................

Keith J. Allman President, Chief Executive Officer & Director A A portion of that favorability in SG&A this year is what we talked about in terms of the gain on sale on the DAP

segment, so that was about $4mm. And we did lap some investments in Q4 of 2017 tied to some pretty significant

resets and program wins in decorative hardware with Liberty in the shower door program. So there was a bit of an

easy comp, if you would. We also had good cost control throughout the year, and we did push certain investments

into 2019 to mitigate inflationary pressures for example.

In 2019, we expect total SG&A for the company to be up slightly from 2018 as a percent of sales as we pick up

some of those investments that were pushed out to 2019. We’re going to continue to invest strategically for

growth, such as marketing spend in plumbing and additional headcounts in deco to support our pro initiative. ......................................................................................................................................................................................................................................................

Justin Andrew Speer Zelman & Associates Q Okay. And then the next question, it’s a two-part question, particularly as it pertains to the Plumbing business.

You’re looking for flat margins there. You included a 25% tariff. First question is, do you already have the price in

hand for that 25% tariff? And the second question is, how do margins for that business flex around a more

sanguine R&R market backdrop, let’s say, low single or flat as opposed to your 5% view? And how do they look

under a 10% or no-tariff scenario?





Keith J. Allman President, Chief Executive Officer & Director A I think in terms of do we have price in hand for the 25? No, we do not. We obviously had significant conversations

and pricing actions. For the 10%, we feel we’re with a combination of the price and the cost-outs that we’ve driven

there, we’re in good shape on the 10%. But more conversations would be required for sure should we see this go

to 25%. Justin, could you repeat that second part of your question for me? ......................................................................................................................................................................................................................................................

John G. Sznewajs Chief Financial Officer & Vice President A It’s on margin flex in a low-growth environment vs. a no-tariff scenario. So, Justin, as I think about that, assuming

that commodities are constant, so let’s put that initially, we don’t have any commodity impact. I would say that we

should see some modest margin expansion just given our leverage on incremental volume, and so that should

help us out. And to the extent that the tariffs don’t go into effect and that has a good impact or a favorable impact

on consumer demand, we would typically see incremental margins off of volume in this segment in the high 20%

to 30% range. So we should see some again some modest margin expansion in that scenario as well. ......................................................................................................................................................................................................................................................

Justin Andrew Speer Zelman & Associates Q But in a flat world assuming a 25% tariff does go into fruition, that would potentially risk your guidance since

you’re looking for modest growth there? ......................................................................................................................................................................................................................................................

John G. Sznewajs Chief Financial Officer & Vice President A It could have a little bit of an impact on it only because with 25% tariffs, we are going to be – again, the same

answer I gave a couple of minutes ago, we won’t be getting the dollar impact of that recovery on those tariffs. So

that, if anything, could present a little bit of a headwind to margins in that scenario, Justin. ......................................................................................................................................................................................................................................................

Justin Andrew Speer Zelman & Associates Q Thank you. ......................................................................................................................................................................................................................................................

Keith J. Allman President, Chief Executive Officer & Director A I think I may have heard you say something along the lines of the 25% tariff risking our guidance. Just to be clear,

we have incorporated into our guidance the expectation of 25% on March 1. ......................................................................................................................................................................................................................................................

Nishu Sood Deutsche Bank Securities, Inc. Q I wanted to ask first about the assumed moderation in demand that you’re baking into your 2019 forecast. So, on

the housing side, we clearly have some indicators that housing has slowed down. And I imagine you would expect

that to begin to impact some of your businesses in the next quarter or two. On the R&R side, the assumed

slowdown, is that something you’ve seen already in Q4, or are you just assuming that it happens given the

slowdown on the new side? ......................................................................................................................................................................................................................................................





Keith J. Allman President, Chief Executive Officer & Director A We did see a little bit of a slowdown in Q4. I think in our coatings business, we saw it a little bit. I talked a little bit

about our Plumbing business in the trade and wholesale, so there’s little bit of slowness there. ......................................................................................................................................................................................................................................................

Nishu Sood Deutsche Bank Securities, Inc. Q Got it, got it. ......................................................................................................................................................................................................................................................

John G. Sznewajs Chief Financial Officer & Vice President A And, Nishu, I would also say that we saw a little bit of slowdown in our cabinets and to a degree our Windows

business. We grew low-single digit for Q4 in Windows, grew mid-single digits for the full year there. ......................................................................................................................................................................................................................................................

Nishu Sood Deutsche Bank Securities, Inc. Q Got it. Just shifting gears to cabinets and Other Specialty. In terms of the kind of margin turnaround there, kind of

getting those back to double-digit. Low-single digit revenue growth there seems pretty good given their greater

exposure to new construction. On the margin side though, we’re expecting flat for the year. They have less, I

would imagine, tariff impact based on your tables there and less commodities as well. So, why only flat? When

can we expect further improvement in margins on those two businesses? ......................................................................................................................................................................................................................................................

Keith J. Allman President, Chief Executive Officer & Director A When you look at cabinets, we had a full year margin north of 9% and when you compare that to the competition,

we think we’re doing pretty good there. We’ve got certainly some good dropdown that can come from that. We

also experienced some inflation in plywood that we’ve dealt with. There’s still little bit more of that that could be a

drag on margins.

In terms of our Windows business, we’ve got ERP spend that we’re going to continue to make into the quarter,

which, our experience shows us, will have an impact on both the top line as well as the actual expense of that

ERP system. So when you combine those things together, that’s what’s really led to our guidance as it relates to

margin. ......................................................................................................................................................................................................................................................

Stephen Kim Evercore Group LLC Q Good quarter. I wanted to follow up on the cabinet conversation a little bit. Menards, I think you had indicated that

it was going to be running at a run rate of about $80mm or so on an annualized basis by the end of this year – or

the end of last year. I am guessing that maybe you recognized about half of that in 2018. And if that were to be

the case, that would suggest that Menards alone would add about 400BPS to your sales next year. But you’ve

guided 0% to 3%. And so, I’m kind of wondering if you could talk about what you’re seeing in the market

environment that underlies that guidance. Or is there anything that you’re seeing in terms of the sales

environment that is depressing things that is worth calling out, whether it be regionally or price point-wise or

anything like that? ......................................................................................................................................................................................................................................................





John G. Sznewajs Chief Financial Officer & Vice President A So, Stephen, with respect to the Menards business, while we won’t break out specific customer sales, we’re

probably doing a little bit better than that $40mm run rate that you suggested. So, the impact for 2019 is good as

you’ve laid out there.

That said, as we go into 2019 and as we consider a little bit of the deceleration we saw in 2018 and the impact of

the tariffs and the pricing, particularly on a big-ticket item like cabinetry, we do expect to see a little bit more of a

market slowdown in Cabinetry going into 2019, and so that definitely weighs on our forecast for 2019.

That said, even though we did see some of this deceleration, we do expect just some modest growth in this

because we have seen nice growth on the R&R side of our business, and we’ve gotten back to flat sales for our

new construction business. So, not a lot of growth, but we do see a little bit of deceleration in that area for 2019. ......................................................................................................................................................................................................................................................

Stephen Kim Evercore Group LLC Q Okay, that’s helpful. But just to clarify, you’re expecting some modest growth excluding or in addition to the

Menards win? ......................................................................................................................................................................................................................................................

John G. Sznewajs Chief Financial Officer & Vice President A Given the fact that we’ve baked in some headwinds, given the tariffs and the deceleration – or the overall market

demand, I’d say, it’d be kind of flat to very low-single digit growth ex-Menards. ......................................................................................................................................................................................................................................................

Stephen Kim Evercore Group LLC Q Ex-Menards? Okay, got it. And then you talked about the outlook for housing starts I think being kind of low-single

digit growth for the year. At this point, that seems like it’s reasonably conservative, but also there’s a lot that’s still

up in the air in terms of what the housing market’s going to do as we just enter the spring selling season this

week.

And so I was curious if you see upside to this housing starts figure that you laid out of low-single digit growth, is

there anything about your strategy that would change? And are there any particular segments that we should be

expecting you would be able to generate outsized sales or profit growth as a result of housing starts specifically? ......................................................................................................................................................................................................................................................

Keith J. Allman President, Chief Executive Officer & Director A If rates start to go down a little bit, then obviously that could be an upside for us. In terms, Stephen, of your direct

question, if we see upside in our guidance, I would say no. I think we’ve put our guidance right where we think it

would be and where we expect to come out based on what we know now.

With regards to our specific strategy and would we change anything in our strategy should there be an increase in

housing demand, no, not really. We’ve got our capacities in a good spot where we need to fulfill the demand.

We’ve purposefully moved our portfolio to a less cyclical, higher-margin, more stable state because we think

that’s the right thing to do for shareholder value. We talked a little bit about doing that in our cabinet business,

how we shifted it now to close to 70% of our business coming from repair and remodeling rather than new





construction. Obviously, going back, we spun off our services businesses, and we’re continuing to drive our Paint

and Plumbing business and our Lighting business particularly into the R&R space. So that’s our strategy. We

think that strategy is sound and it’s working. So I would not say that we would have any material strategic change

should we see housing pick up in 2019. ......................................................................................................................................................................................................................................................

John G. Sznewajs Chief Financial Officer & Vice President A And, Stephen, I’d just remind you that housing as a percent of our total revenue is now down to about 15%. So it’s

really, to add to Keith’s point, because of the strategic repositioning that we’ve done over the years, it’s really a

very minor impact to the overall part of our sales or our business. ......................................................................................................................................................................................................................................................

Michael Dahl RBC Capital Markets LLC Q I wanted to just go back to some of the commentary around sales and thinking about the cadence of things. You

guys have called out a couple things that are idiosyncratic about the pull-forward in the Paint and Plumbing

segments with respect to the impact on Q1. You pointed out some margin headwinds in Q1. But I guess at a

higher level, when we think about that 3% to 5% organic sales growth, how should we think about that playing out

Q1-Q2 vs. H2? ......................................................................................................................................................................................................................................................

Keith J. Allman President, Chief Executive Officer & Director A We’ve talked about some of the pressure that we’re seeing in Q1 as it relates to margin and also on top line with

the pull-forward that we experienced in Paint and Plumbing, so that would be a factor on Q1. When we look at

that from H1 to H2, we certainly will see a pickup in Q2 as those first quarter headwinds don’t exist with regards to

the pull-forward, and then H2 to be somewhat similar to H1. So we’re maybe a little bit stronger in the back half,

but really pulling out the effect of the pull-forward out of Q1 into Q4 of 2018, really not a significant change beyond

that. ......................................................................................................................................................................................................................................................

Michael Dahl RBC Capital Markets LLC Q Okay, got it. And then my follow-up question, just looking at the Decorative segment in particular with respect to

the 2019 guidance, I was hoping to drill down on Kichler a bit more because clearly that’s a business that has

potentially outsized exposure from a tariff standpoint. You’ve expressed some conservatism broadly speaking

around what potential demand impacts could be should the 25% go into effect. So I guess on Kichler specifically,

what are you guys embedding from a growth and margin standpoint to the extent you can give us a little more

detail there? ......................................................................................................................................................................................................................................................

Keith J. Allman President, Chief Executive Officer & Director A I won’t break it down into specific details for Kichler. But in terms of speaking more in general terms, you may

recall, we had 10 months of Kichler in 2018, starting basically in March. So we’ll have the full quarter in Q1 of

Kichler. And just on face value, Kichler, that would be a margin drag as Kichler’s margins are lower than the

average in the segment, but particularly in Q1. That’s seasonally a weaker quarter for Kichler. So that will put

some drag on the segment as we look at the performance in Q1, and that’s part of our guidance, some of our

prepared remarks with regards to margin in that segment.





Very happy we continue to build out the team down in Kichler, have an outstanding leader that’s demonstrated

performance across a number of our businesses and a number of functions. As I interact with the dealerships and

get more exposure to our customers, I’m really seeing a strong brand, and I’m also seeing an opportunity for us to

bring some of our MOS [Masco Operating System] operational skills and some of our purchasing power to that

area. We have an outstanding ability and opportunity to bring e-business capabilities to that business. So we’re

very happy with the Kichler acquisition. And we’re going to continue to drive performance throughout the year,

understanding that given the full year – or full quarter ownership of Kichler and the fact that Q1 is a seasonally

weaker quarter, that will be a little bit of a margin drag on the segment. ......................................................................................................................................................................................................................................................

John G. Sznewajs Chief Financial Officer & Vice President A Mike, maybe just to add on to Keith’s comment just a bit, if you think about how we look at the Lighting business

and what we talked about when we acquired the business, we really don’t see the fundamental market for lighting

shifting dramatically from when we initially talked about it. It should grow at the same rate as the overall R&R

market, in that mid-single-digit, 4% to 6% range, as you might call it.

That said, you raised the point about the tariffs and the tariff impacts. Could that have a little bit of a headwind on

that? Yes, that could, without a doubt. So something we need to look at and see how the tariffs actually roll out

and see how that plays. ......................................................................................................................................................................................................................................................

Matthew Bouley Barclays Capital, Inc. Q I just wanted to follow up on the discussion earlier around how you would flex margins depending on different

market assumptions. Because you gave a point estimate for both Plumbing and cabinets margins in 2019 in light

of obviously a lot of moving pieces around tariffs and commodities. So I guess just what gives you confidence in

such precise estimates? And then, would you be able to give, I guess, a more specific range or a bracket around

those margin estimates? Thank you. ......................................................................................................................................................................................................................................................

Keith J. Allman President, Chief Executive Officer & Director A I think the specificity comes from being able to identify the pull-forward, for example. I think that’s a significant bit

of it. We wanted to get some more detail in those segments because there were so many moving parts. I think

historically, we understand how those businesses operate. And the effect of Kichler as it relates to a seasonally

slower point in time and the fact that we own it three out of three months instead of one out of three months there.

So that was straight math, and we wanted to make sure that we talked about that so we could be more precise in

that specific quarter.

With regards to more detail, I think we’ve laid out the detail that we’re prepared to lay out with regards to our

margin performance for the year. And with respect to the impact of tariff, which is obviously the big moving piece

here that we’re talking about, that would have – if those were to go away, that would move us up towards the

higher part of our range, and we’ll leave it at that, and we’ll provide more detail as we get more certainty around

the number or the dates, et cetera. ......................................................................................................................................................................................................................................................

Matthew Bouley Barclays Capital, Inc. Q Okay, I appreciate that detail. Thank you. And then just the margin guidance, specifically for Decorative,

understanding the larger impacts in Q1, it still suggest that you’re expecting a lower margin y-over-y from Q2 to





Q4. So, is there any additional color on why that may be in light of oil prices obviously moving lower? I guess, how

much of that would be the Kichler headwind from tariffs? Is mix of pro a meaningful part of that, just any additional

color on why the conservatism on margins there? Thank you. ......................................................................................................................................................................................................................................................

Keith J. Allman President, Chief Executive Officer & Director A Sure. Well, Kichler is a big mover there with the – that we’ve already talked about. We do expect some

price/commodity headwind in H1 2019. We are going to continue to invest in hub stores and pro reps. And recall

that we don’t anniversary our 2018 pro rep additions until Q3. So, when you look at Kichler, you look at what we

expect to be commodity headwinds, particularly in the resin area that we’ll be facing early in the year, we look at

our growth investments in hub stores and pro reps and the fact that we don’t anniversary some of those additions

we made in 2018 until late in the year, those all combined to put our guidance in that 17% to 18% range. ......................................................................................................................................................................................................................................................

John G. Sznewajs Chief Financial Officer & Vice President A The one other thing I would add to that list of items that Keith just called out is our depreciation and amortization

in the segment. I called that out in my prepared remarks, will be up compared to what we’ve experienced

historically, Matthew. So that’s another margin headwind a little bit. But from an EBITDA perspective, we’re

probably EBITDA – no impact on EBITDA whatsoever. ......................................................................................................................................................................................................................................................

Susan Maklari Credit Suisse Securities (USA) LLC Q My first question is just around, you’ve done a fair amount of work on the working capital side over the last year or

so, how much more do you think you can do there, and how should we think about that potentially adding to some

of the cash generation that you expect? ......................................................................................................................................................................................................................................................

John G. Sznewajs Chief Financial Officer & Vice President A Certainly. You’re right, Susan. Thank you for noticing the fact that we’ve been working on our working capital.

Indeed the businesses have been working hard at it. It has actually elevated a little bit from where we’ve been

historically. A large part of that has to do with the Kichler acquisition as they carry higher working capital than

most of our businesses – core businesses typically have done.

That said, we are working with the Kichler team. They know that they see opportunity to reduce their working

capital in their business. So that could be a little bit of a tailwind for us going forward. And as you may know, we

have all of our businesses focused on working capital. So, while we’re happy with what we’ve posted so far, we

always strive to get better than where we’ve been. So, I think there’s an opportunity to grind out a little bit better

working capital as we go into 2019.

That said, the one thing that will be a bit of a headwind for us in working capital is the tariffs, because the tariffs

you have to pay the government in very short period of time. I believe it’s seven days. And so, that will impact our

working capital a little bit as we go into 2019. ......................................................................................................................................................................................................................................................

Susan Maklari Credit Suisse Securities (USA) LLC Q Okay. And then my next question is just – now that Kichler is integrated, how are you thinking about M&A going

forward? Can you give us any color on what you’ve been seeing in terms of the pipeline there?





Keith J. Allman President, Chief Executive Officer & Director A We have not changed our strategy in M&A. Our pipeline remains solid. We are focused on identifying spaces, if

you will, that we think have good fundamental growth and tailwinds and good pricing power, and then we identify

specific targets and then start our cultivation activity, and we have a pipeline process. And I’m pleased with the

level of the pipeline. We really are not changing our strategy. We have a strong balance sheet that affords us the

ability to do the kind of deals that we want to do, as well as allocate capital on a balanced approach towards

share repurchases, dividends and, of course, we’re going to continue to fund our brand and innovation in new our

existing core business. So, we like what we’re seeing, and we’re going to continue to drive it, and when we are

ready to announce a deal, we’ll do that.

Disclaimer

The information herein is based on sources we believe to be reliable but is not guaranteed by us and does not purport to be a complete or error-free statement or summary of the available data.

As such, we do not warrant, endorse or guarantee the completeness, accuracy, integrity, or timeliness of the information. You must evaluate, and bear all risks associated with, the use of any

information provided hereunder, including any reliance on the accuracy, completeness, safety or usefulness of such information. This information is not intended to be used as the primary basis

of investment decisions. It should not be construed as advice designed to meet the particular investment needs of any investor. This report is published solely for information purposes, and is

not to be construed as financial or other advice or as an offer to sell or the solicitation of an offer to buy any security in any state where such an offer or solicitation would be illegal. Any

information expressed herein on this date is subject to change without notice. Any opinions or assertions contained in this information do not represent the opinions or beliefs of FactSet

CallStreet, LLC. FactSet CallStreet, LLC, or one or more of its employees, including the writer of this report, may have a position in any of the securities discussed herein.

THE INFORMATION PROVIDED TO YOU HEREUNDER IS PROVIDED "AS IS," AND TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, FactSet CallStreet, LLC AND ITS

LICENSORS, BUSINESS ASSOCIATES AND SUPPLIERS DISCLAIM ALL WARRANTIES WITH RESPECT TO THE SAME, EXPRESS, IMPLIED AND STATUTORY, INCLUDING WITHOUT

LIMITATION ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, ACCURACY, COMPLETENESS, AND NON-INFRINGEMENT. TO THE

MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, NEITHER FACTSET CALLSTREET, LLC NOR ITS OFFICERS, MEMBERS, DIRECTORS, PARTNERS, AFFILIATES, BUSINESS

ASSOCIATES, LICENSORS OR SUPPLIERS WILL BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, INCLUDING WITHOUT

LIMITATION DAMAGES FOR LOST PROFITS OR REVENUES, GOODWILL, WORK STOPPAGE, SECURITY BREACHES, VIRUSES, COMPUTER FAILURE OR MALFUNCTION, USE,

DATA OR OTHER INTANGIBLE LOSSES OR COMMERCIAL DAMAGES, EVEN IF ANY OF SUCH PARTIES IS ADVISED OF THE POSSIBILITY OF SUCH LOSSES, ARISING UNDER OR

IN CONNECTION WITH THE INFORMATION PROVIDED HEREIN OR ANY OTHER SUBJECT MATTER HEREOF.

The contents and appearance of this report are Copyrighted FactSet CallStreet, LLC 2019 CallStreet and FactSet CallStreet, LLC are trademarks and service marks of FactSet CallStreet, LLC.

All other trademarks mentioned are trademarks of their respective companies. All rights reserved.

Date post:	04-Feb-2020
Category:	Documents
Upload:	others
View:	1 times
Download:	0 times

Formatted Reports1.q4cdn.com/274414510/files/financial_statements/...President, Chief Executive...

Documents