HanesBrands Inc. (HBI) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen, and welcome to the Hanesbrands Inc. Virtual Shareholder Meeting. At this time, the meeting will begin. And it is my pleasure to turn the floor over to your host, Gerald Evans. Sir, the floor is yours.

Good morning. I'm Gerald Evans, Chief Executive Officer of Hanesbrands Inc. It's my pleasure to welcome you to our 2020 Annual Meeting of Stockholders. This year, we're hosting our meeting via the Internet in a virtual format due to the public health and safety concerns resulting from the COVID-19 pandemic. And since we're in different states and time zones, our Chairman, Ronald Nelson, has asked me to chair the meeting today. Thank you for joining us via the web portal. We appreciate your support of Hanesbrands. I'll start the formal business of this meeting by introducing Joia Johnson, our Chief Administrative Officer, General Counsel and Corporate Secretary, who will serve as Secretary of this meeting. To continue the introductions, I'd like to recognize the other directors joining us today: Ron Nelson, our Chairman of the Board; Geralyn Breig; Bobby Griffin; James Johnson; Franck Moison; Robert Moran; David Singer; and Ann Ziegler. In addition to myself and Joia Johnson, our executive officers joining us today are Howard Upchurch, Group President, Innerwear Americas; Jon Ram, Group President, Global Activewear; Mike Faircloth, Group President, Global Operations, American Casualwear and E-commerce; David Bortolussi, Group President, International Innerwear; and Scott Lewis, Interim Chief Financial Officer and Chief Accounting Officer. We're also joined today by Robert Vallejo of PricewaterhouseCoopers, the independent registered public accounting firm for Hanesbrands. The meeting will now come to order. Our first action in the general order of business will be to review the motions to be considered, then we'll vote on those motions. After the voting, we'll receive a reporting on the voting results, which will include the formal business of the meeting. We'll then adjourn the meeting and provide time for general questions. You may submit your questions in the designated field on the web portal. Out of consideration for others, please limit yourself to one question. Though we may not be able to answer every question, we will do our best to provide a response to as many as possible. Please note that this meeting is being recorded. So to begin, I'll ask Joia Johnson to introduce our inspector of election, who will confirm that notice of this meeting was properly given and attest to the presence of a quorum.

Thank you, Mr. Evans. [ Victor Latessa ] has been appointed as our independent inspector of election to ascertain the number of shares outstanding and the voting power of each, determine the shares represented at the meeting and the validity of the proxies and ballots, count all votes and determine the results of the voting. I have received [ Mr. Latessa's ] written oath of office as inspector and he has presented me with evidence that notice of this meeting was properly given to all stockholders of record as of the close of business on the record date. [ Mr. Latessa ], have you determined whether a quorum is present at this meeting?

I have determined that there are stockholders represented at this meeting, holding common stock representing at least a majority of the votes entitled to be cast at this meeting, which is sufficient for a quorum and for transacting the business of this meeting.

Thank you. Mr. Evans, I find that a quorum is present for the purpose of conducting business at this meeting. All holders of record of the company's common stock as of the close of business on February 18, 2020, are entitled to vote at this meeting on all business to come before the meeting.

Thank you. The items to be considered at this meeting are the items set forth in detail in the notice of the 2020 Annual Meeting of Stockholders and proxy statement of the company and mailed or made available to stockholders of the company on or about March 16, 2020. The first item of business on our agenda is to elect 8 directors to serve until the 2021 Annual Meeting of Stockholders or until their respective successors shall have been elected and qualified. Geralyn Breig, Bobby Griffin, James Johnson, Franck Moison, Robert Moran, Ronald Nelson, Ann Ziegler and I have been nominated to serve as directors. Ms. Johnson has advised me that there were no nominations by stockholders that were submitted to the company prior to this meeting in accordance with the bylaws. Therefore, I declare the nominations closed. The second item on our agenda is to ratify the appointment of PricewaterhouseCoopers LLP as the company's independent registered public accounting firm for the 2020 fiscal year. The third item on our agenda is to approve on an advisory basis executive compensation as disclosed in the proxy statement for the company's 2020 annual meeting. And the fourth item on our agenda is to approve the Hanesbrands Inc. 2020 Omnibus Incentive Plan. Are there any questions at this time pertaining to these issues? Ms. Johnson, may we open the polls?

Yes. I now declare the polls for this meeting to be open. If there's any stockholder present who has not authorized a proxy to vote and wishes to vote at this time or who wishes to revoke a proxy previously submitted, you may do so by clicking on the voting button on the web portal and following the instructions there. Stockholders who have sent in proxies or voted via telephone or the Internet and do not want to change their vote do not need to take any further action. After the votes have been cast and the polls closed, the inspector will announce the preliminary results. [Voting]

Now that everyone has had the opportunity to vote, I announce that the polls for this meeting are closed. [ Mr. Latessa ], will you report the results of the vote?

On the motion for the election of directors, a majority of the votes cast at this meeting were cast in favor of the election of Geralyn Breig, Gerald Evans, Bobby Griffin, James Johnson, Franck Moison, Robert Moran, Ronald Nelson and Ann Ziegler. On the motion for the ratification of the appointment of PricewaterhouseCoopers LLP as the company's independent registered public accounting firm for the 2020 fiscal year, a majority of the votes cast at this meeting were cast in favor of ratification. On the motion for the approval on an advisory basis of executive compensation as disclosed in the proxy statement for this meeting, a majority of the votes cast at this meeting approved Hanesbrands' executive compensation as disclosed in the proxy statement for this meeting. On the motion for approval of the Hanesbrands Inc. 2020 Omnibus Incentive Plan, a majority of the votes cast at this meeting were cast in favor of approval of the Hanesbrands Inc. 2020 Omnibus Incentive Plan.

Thank you. I declare that the proposed slate of directors has been duly elected. The appointment of PricewaterhouseCoopers as our independent registered public accounting firm for the 2020 fiscal year has been duly ratified. Hanesbrands' executive compensation has been approved by an advisory vote and the Hanesbrands Inc. 2020 Omnibus Incentive Plan has been approved. I hereby direct the results of the voting to be incorporated into the minutes of this meeting. The business for which this meeting has been held is now complete. I declare the meeting formally adjourned. With the formalities of the meeting now handled, I'd like to acknowledge a director who will be retiring this year, David Singer. I want to thank David for his dedicated service to the company since 2014. Now I'd like to open the meeting for a few questions for a -- for the next few minutes. Please note we will attempt to answer as many questions as time allows, but only questions that are germane to this meeting will be addressed. Seeing no questions, we'll now move to adjourn the meeting. Thank you for your time, and thank you for joining us today.

Thank you, ladies and gentlemen. This does conclude today's shareholder meeting. Thank you for your participation, and have a wonderful day.