Thank you, Carmen. Good afternoon. And welcome to our Quarterly Conference Call to Review our Sales and Earnings of the Fiscal 2019 First Quarter which ended April 29, 2018. We certainly appreciate your participation today. Paul Toms, our Chairman and CEO will join me for our prepared remarks. For the question-and-answer portion of the call, several of our other business unit heads will be available to take questions, including and Michael Delgatti, President of our Hooker Domestic Upholstery and Emerging Channel; HMI Co-Presidents Doug Townsend and Lee Boone; and Jeremy Hoff, President of Hooker branded Casegoods and Upholstery. During our call today, we may make forward-looking statements, which are subject to risks and uncertainties. A discussion of the factors that could cause our actual results to differ materially from management's expectations is contained in our press release and SEC filings for the fiscal 2019 first quarter results. Any forward-looking statements speak only as of today, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after today's call. This morning, we reported consolidated net sales of $142.9 million and net income of $7.2 million, or $0.61 per diluted share for our fiscal 2019 first quarter. For the quarter, consolidated net sales increased over 9% compared to a year ago, primarily due to increased sales in Hooker branded and all other segments that were partially offset by a decrease in sales in the Home Meridian segment. Earnings per share increased to $0.61 per share compared to $0.41 in the prior year. Now, Paul Toms, will comment on our first quarter results.

Thank you, Paul, and good afternoon, everyone. We were pleased that our strong top and bottom line performance for the quarter was driven by double-digit sales gains for Hooker branded Casegoods and imported Upholstery, which began in the fourth quarter of last year and strengthened into the first quarter of fiscal 2019. The inclusion of Shenandoah Furniture acquired last September and the first quarter results also boosted our year-over-year performance. The Shenandoah generated $9 million in sales for the quarter and contributed to profitability. Our gains were partially offset by 4.2% net sales decrease and lower operating profit in the Home Meridian segment during the quarter. The dip is attributable to short-term and temporary production and shipping delays from three major product vendors, following Chinese New Year and inventory cycling by a couple of large customers. These delays are already behind us as April shipments at HMI exceeded the prior year by almost 30%. However, it wasn't enough to recover for the quarter. Our robust performance on a consolidated basis, despite a week quarter for Home Meridian, validates our strategy to build a diverse portfolio companies, spanning multiple channels of distributions, products and price points. During the quarter, consolidated gross profit increased 13.6% or $3.8 million, and it also increase as a percentage of net sales from 21.5% to 22.4% over the prior year quarter, primarily due to increased gross profit in the all other segment due to the inclusion of Shenandoah. Gross profit increases in the Hooker branded segment are driven by 12% net sales increase at Hooker Casegoods and 30% increase at Hooker Upholstery. Overall, sales in the Hooker branded segment grew $5.3 million or 14.1% in the first quarter due to the brisk growth in both the business units that make up that segment. The 12% sales…

Thanks, Paul. Consolidated average selling price increased 5.8%, mostly due to increased Hooker branded average selling prices and Hooker branded increased share of consolidated sales. That was partially offset by a decrease of a little over 4% in unit volume. Unit volume decreased primarily due to 7% decrease in unit sales at Home Meridian whose sales tend to be higher volume but lower-priced units, and to a lesser extent, the absence of Homeware, which was shut last year. The inclusion of Shenandoah Furniture this quarter and increased sales at Hooker Casegoods and Hooker Upholstery helped offset some of the unit volume decrease. The Hooker Branded segment reported a unit volume increase of 12% with the average selling prices rising 2%, and both unit volume and ASC increased at Bradington-Young, which continues to make steady gains. As Paul noted earlier, consolidated gross profit increased $3.8 million in the quarter, mostly due to increased sales in the Hooker Branded segment and all other. We’re also pleased to report that we’ve seen margin improvement in our domestic upholstery operations after facing some pricing and efficiency challenges in Q4 of fiscal ’18. Consolidated selling and administrative expenses increased in absolute dollars but decreased slightly as a percentage of net sales. Investments in people and systems, particularly at HMI and higher compliance related costs, drove the increased spending but were able to better leverage fixed costs on the higher sales this quarter. Amortization of acquisition-related intangibles was higher in this year’s fiscal first quarter due to adding amortization of Shenandoah's intangibles from our acquisition of that business in the third quarter of last year. For these reasons, operating income for the fiscal 2019 first quarter was $9.4 million or 6.6% of net sales compared to $7.2 million or 5.5% of net sales in fiscal 2018 first quarter. Our balance sheet remains strong despite the use of cash and additional long-term debt incurred with acquired the Shenandoah business last year. At the end of the quarter, we had cash and cash equivalents of nearly $47 million available to provide the required working capital and to service our acquisition-related debt, which stood at $41.5 million as of the end of the quarter. We also have access to $28.5 million on our revolving credit facility and about $23 million of cash surrender value of company-owned life insurance, which gives us an additional financial flexibility. In today's earnings release, we also announced a quarterly dividend of $0.14 a share, which represents about 1.5% dividend yield. Now, I’ll turn the discussion back to Paul Toms for his outlook.

Thanks, Paul. Retail business in the first quarter can best be described as choppy. Overall, incoming orders vary by business unit, but generally exceeded shipments. Economic trends are favorable to the furniture industry and we entered the second quarter with a good bit of momentum. Given the positive economic indicators and the diverse nature of our companies, products, price points and distribution channels, we’re strongly positioned and expect to continue to outperform the industry. This ends the formal part of our discussion. And at this time, I’ll turn the call back over to our operator for questions.

Thank you [Operator Instructions]. Our first question comes from the line of Anthony Lebiedzinski with Sidoti and Company. Your line is open.

I do have a few questions just about each of these segments. I guess, first starting off with the Hooker Casegoods. Just wondering how much of the growth came from sales to what you call emerging channels of distribution?

Anthony that’s a good question, and I don’t have that information at my fingertips. And the Hooker Casegoods segment, emerging channels are pretty broad, it includes ecommerce, interior design, international and also contract. And so I am going to guess that probably collectively that’s around 25% of our business or so, and probably in the last quarter's growth was in the 25% to 30% range in those channels.

And as far as Hooker Upholstery, so clearly nice job within that segment. Is there more room to improve in terms of expansion of price points, styles and sourcing that you talked about?

We have Jeremy Hoff with us who has been the head of that division for about the last nine months. So I’ll ask him to respond to that.

I would say as there is a lot of upside, a lot of potential for growth, we’ve had a good portion of our growth in other categories from recliners to home office chairs. And we’ve had a lot of traction in the motion category, as well as stationary, which are going to be some higher transaction dollars, which is going to lead to substantial growth potential for us in the future.

And then what about power motion specifically, what are you seeing there?

It’s become really all about power from our standpoint. The industry is a very high percentage towards power in the motion category. So the past two markets, we've been heavily introducing power in all categories that it relates to.

And then moving on to HMI. So just wondering what was the timing of the factory fire that you called out in the press release?

Anthony, this Doug Townsend. We actually had two fires and one was in February and the other was in March at two different major factories.

And so as far as the three major vendors that you called out having disruptions. So just wondering, were they a significant portion of your overall sales coming from those three vendors?

Luckily, they were all major vendors, really large. And so while they had fires, they are big factories with 3,000, 4,000, 5,000 people each and so, they've got multiple finishing lines. And they weren’t devastating fire, so to speak, and nobody was hurt at any of these fires, thank god. So there was delay as they moved production around and tried to re-create some parts that got burned and things like that, and that affected both February, March and a little bit in April. But those factories, for the most part, are 95% plus recovered at this point.

And so it sounds like at this point based on the comments that you've made in the press release and during the call so far that HMI’s issues have been resolved. Is that fair to say?

Related to those big issues, yes.

And then as far as the all other segment. Just curious, when would you expect Sam Moore to operate at full efficiency and profitability?

Well, they are steadily improving as Paul alluded to in terms of profitability, starting to regain momentum in terms of sales orders, making particularly good progress with their key accounts. So I expect Sam Moore to make continuing progress through the balance of the year.

And as far as Shenandoah, has there been any cross-selling between Shenandoah and the legacy piece of the business, or is that something that you think you could do? And so just wondering if there is an opportunity there?

Generally, Shenandoah has been focused on their primary lifestyle customers. However, we are in the process of developing an upholstery program that will target the interior design channel, it will actually be sold to a channel exclusively. And the launch of that program will be the October market.

And lastly couple of other items I think, I guess these will be more for Paul Huckfeldt. So there was a $2 million provision on the cash flow statement for doubtful accounts. Can you just explain what happened there?

That's just a change in account -- in accruals. We cycle through -- HMI has a pretty high level of accrued allowances for some of their big customers like I think some of the major customers that require a lot of allowances throughout the sales cycle. And actually it was an improvement, wasn't it? And so we improved, because we took some of those balances down as we reduced the AR balances in some of those…

Okay, so I misread that. Okay, got it. All right. And then lastly as far as the tax rate, it came in a little bit lower than we expected. Just wondering how should I think about the tax rate going forward?

I would use the same tax rate for the rest of the year. It came in a little lower. The life insurance again tweaked it down a little bit. So I would use that rate for the rest of the year.

Thank you. And our next question comes from the line of Mitchell Brivic with Tygh Capital. Your line is now open.

I wanted to explore the hospitality segment of Home Meridian. Historically, what percentage of Home Meridian sales has come from hospitality?

It was approximate about 5% last year and growing.

And then how about the most recent quarter, what percentage was it?

It was a little less than, about 3.5%.

And then you mentioned that you’ve seen some nice orders in that category. Would we start to see the benefit of that in Q2, or is predominantly going to benefit Q3 and Q4?

It will benefit Q2 for sure. We have backlog for those shipments and those orders are in production now. And we expected to continue in Q3 for sure and hopefully in Q4, but we can’t see Q4 yet.

Thank you. And I’m not showing any further questions in the queue. I would like to turn the call back to Paul Toms for his final remarks.

All right. We really don't have anything else to comment on. We appreciate everybody joining us today. We’re glad to bring a good quarter and we’re looking forward to post another good quarter next -- and the next quarter, the second quarter, and we’ll be back with you probably late August. Thank you for joining us today.

And with that, ladies and gentlemen, we thank you for participating in today's conference. This concludes the program and you may all disconnect. Have a wonderful day.