Greetings, ladies and gentlemen, and welcome to the Hooker Furniture quarterly investor conference call reporting its operating results for the fourth period. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Paul Huckfeldt, Vice President, Finance and Chief Financial Officer for Hooker Furniture Corporation.

Thank you, Josh. Good afternoon and welcome to our quarterly conference call to review our results for the fiscal 2019 fourth quarter and full year, which ended on February 3, 2019. We certainly appreciate your participation today. Paul Toms, our Chairman and CEO; and Doug Townsend, Co-President of our Home Meridian division, will join me for prepared remarks. For the question-and-answer portion of the call, we also have several of our business units heads available to take questions as well, including Michael Delgatti, President of Hooker Furniture Domestic Upholstery and Emerging Channels; Lee Boone, Co-President of our Home Meridian division; Jeremy Hoff, President of our Hooker Branded segment; and Anne Jacobson, our Chief Administrative Officer. During our call, we may make forward-looking statements, which are subject to risks and uncertainties. A discussion of factors that could cause our actual results to differ materially from management's expectations is contained in our press release and SEC filing announcing our fiscal 2019 year-end results. Any forward-looking statement speaks 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. Last night, we reported consolidated net sales of $683.5 million and net income of $39.9 million or $3.38 per diluted share for our fiscal 2019 year ended February 3, 2019. For the year, net sales increased approximately 10% or $63 million compared to last year, and net income increased 41% or $11.6 million. Earnings per diluted share increased 40% from $2.42 a year ago. For the fiscal 2019 fourth quarter beginning October 29, 2018, and ending February 3, 2019, consolidated net sales were $200 million with net income of $14.7 million or $1.24 per diluted share. Net sales increased $25 million or approximately 14.2% compared to last year's fourth quarter, buoyed by net sales increases across both reportable segments and All Other. Net income increased 72.4% in the quarter. Now Paul Toms will comment on our fiscal 2019 and fourth quarter results.

Thank you, Paul, and good afternoon, everyone. Hooker Furniture performed extremely well during the year, growing sales and improving profitability in all segments and increasing sales in 9 of our 11 business units and 7 -- profits in 7 of the 11 business units. Our robust results were achieved despite several challenges. These included an unexpected 10% tariff on finished goods and component parts imported from China, implemented September 24, 2018, and management transition in the Home Meridian segment and several of our business units. We believe that our solid performance validates our strategy to diversify our corporate portfolio and focus our investments in products, programs and personnel around winning channels of distribution while keeping a strong presence in traditional channels. The fiscal 2019 sales increase was driven by organic growth as well as the addition of the full year sales from Shenandoah Furniture, which we acquired in September of 2017. Prior year results include only 4 months of earnings for Shenandoah Furniture. Excluding Shenandoah's full year impact on shipments, sales grew organically approximately 6%. Also favorably impacting sales, fiscal 2019 had 53 weeks while fiscal 2018 and '17 each had 52 weeks. The additional week in 2019 increased consolidated net sales by $13.4 million based on the average net sale shipping -- per shipping day. The 41% net income improvement for the year was favorably impacted by the Tax Cuts and Jobs Act of 2017. We were also pleased to report a 15.9% improvement in operating income for the year, with significant increases in both our Hooker Branded segment and All Other, which includes our domestically produced upholstery divisions and the H Contract furnishings division for senior living facilities. We finished the year with an especially strong fourth quarter. As Paul Huckfeldt mentioned, net sales increased $25 million or…

Thanks, Paul. In the Home Meridian segment, net sales in the fourth quarter were up 17% compared to last year, and operating profit for the quarter was up 22% over the prior year. For the full fiscal year, HMI sales were up $22.4 million, a 6% increase; and operating profit was $18.8 million, a $1 million higher than the prior year and flat as a percentage of sales. Fiscal year 2019 profitability was below expectations due to a combination of sales mix changes, investments to grow our business in advantaged channels, temporary sourcing disruptions from the China tariffs and a significant customer return in the fourth quarter. We ended the quarter with orders up 10.5% compared to the same period a year ago and backlog up 3.2%. Our mega account strategy continued to deliver strong results with sales to those customers up 10% for the year. Our mega accounts now represent over 70% of HMI's revenues. Advantaged channels of distribution now account for 47% of our business and continue to deliver greater sales growth than traditional channels, with business from advantaged channel customers up 28% and traditional channel customers down 4% on the year. While our sales with the traditional customer base are down overall, we feel this is temporary and that the channel will return to modest growth as we roll out new products and improve service levels. We continue to invest in our advantaged channel business with positive results. Our e-commerce sales were up 41% versus the prior year and remain our fastest-growing sales channel. We have focused our resources, including product development, content and image creation, data analysis, specialized warehousing, fulfillment and system support on the largest e-commerce players in furniture who see value in partnering with a company that has the foresight, infrastructure and expertise to…

Thank you, Doug. The All Other category in our segment financial statements includes our domestic upholstery operations, Bradington-Young, Sam Moore and Shenandoah Furniture, along with H Contract. We reported a sales increase of $28.6 million or 32.3%, primarily driven by the inclusion of Shenandoah's full year sales, and to a lesser extent, due to steady sales growth at Bradington-Young and H Contract. In fiscal 2019, Bradington-Young orders and net sales increased by 7.2% and 8.2% respectively, due to increased demand for its luxury motion upholstery. At the recent High Point Furniture Market, we introduced a merchandising program called [ Lux Living ], which we expect to increase luxury motion sales further. This program allows consumers to choose between motion, stationary or sleeper sofas and select their style, cover and arm type through special order. Each contract continued to grow with orders up over 12% for the year and backlog up 73% compared to prior year-end. Recently, H Contract successfully introduced a dining room chair program, which is a top category in both the senior living and the retirement center furnishings industry. The increases in those 2 divisions were partially offset by decreased sales at Sam Moore. However, thanks to cost reductions and better-controlled operating expenses, operating margins improved for the year. Sam Moore also enjoyed a lot of momentum at the High Point Furniture Market, where we introduced a very well-received program called [ Loft Living ], a group of 18 sofas, sectionals and swivel chairs in soft modern styles, allowing the consumer to special order these pieces with their choice of arm styles and covers. At this time, I'd like to turn the call back over to Paul Huckfeldt, who will elaborate further on our quarterly results.

Thank you, Paul. Consolidated average selling prices increased almost 3% mostly due to higher average selling prices at Home Meridian and in All Other. Most of the change in ASP was the result of product and customer mix. Unit volume increased 3.5% on a consolidated basis, but there were significant changes between segments, again, driven by product and customer mix as well as the significant sales increase in Hooker Branded segment. In All Other, the inclusion of Shenandoah Furniture this quarter and increased sales of higher-priced Bradington-Young luxury motion products helped offset decreased sales at Sam Moore. Consolidated gross profit increased $12.2 million to $147 million for fiscal 2019 but decreased slightly as a percentage of net sales. Hooker Branded segment gross profit increased both in absolute terms and as a percentage of net sales due to higher net sales and a favorable customer mix, partially offset by higher freight costs and a $500,000 casualty loss at one of our warehouses earlier this year. Gross profit declined as a percent of net sales at Home Meridian due to a greater mix of lower-margin sales programs as well as higher product costs attributable to the imposition of tariffs on certain Chinese products. Gross margin increased in All Other primarily due to the inclusion of the full year of Shenandoah's results as well as moderately lower direct labor and material costs in our other domestic upholstery units. Consolidated SG&A expenses increased $4.6 million but declined as a percentage of net sales as we were able to leverage our fixed costs over a larger sales base in fiscal '19. The addition of the full year of Shenandoah's operations, higher selling expenses on higher sales volume, higher employee benefits costs and the cost of investments in people and systems drove increased spending, which more…

Thanks, Paul. Fiscal 2019 was a year of many changes and adaptations, some planned and others unplanned. As we look back over the year, we're particularly gratified about 4 areas for accomplishment: First was a successful navigation of the 10% tariff on furniture and component parts imported from China implemented last fall. The situation had impacted about 40% of our corporate-wide shipments during the fourth quarter. We were able to mitigate much of the impact through small price increases to our customers without compromising the quality and service they expect. We also appreciate the cooperation of our supply partners, the understanding of our customers and the adaptation of our management teams for this unexpected situation. Second was our navigation of leadership transitions, including the new co-presidents at HMI after the retirement of George Revington, and several other leadership transitions at the division, president and executive level. Additionally, we intentionally invested in outside leadership development programs and in promoting collaboration between our various business units. Third, we successfully integrated Shenandoah Furniture into our operations this year. Finally, we strengthened our balance sheet, paid down debt, some ahead of schedule; while making $5 million in capital investments, investing in programs, systems, people and product line extensions. During the year, we launched comprehensive initiatives to better serve the winning and growing channels of distribution we've identified. For example, for the international channel, we introduced bedroom groups specifically designed for that market, both in Vietnam in March at the recently concluded High Point Furniture Market. At Home Meridian, we invested in software to facilitate e-commerce deliveries, and in inventory and systems to better service all of our customers. Last fall, we launched 2 programs to address interior designers: Design Pro, a paid membership program providing features and benefits to interior designers; and MARQ, a…

[Operator Instructions] And I'm not showing any further questions at this time. I would now like to turn the call back over to Paul Toms for any further remarks.

We don't have any additional remarks. I appreciate everybody joining us for the call today. We're proud to report the results from the fourth quarter and for the full year fiscal 2019. We look forward to being back with you in about 2 months to report results for the first quarter. Thank you for joining us.

Thank you. Ladies and gentlemen, thank you for participating in today's conference. This does conclude today's program and you may all disconnect. Everyone, have a wonderful day.