Conn's, Inc. (NASDAQ:CONN) Q2 2020 Earnings Conference Call Transcript

Sep 03, 2019 • 11:00 am ET

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Conn's, Inc. (NASDAQ:CONN) Q2 2020 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning and thank you for holding. Welcome to the Conn's Inc. Conference Call to discuss earnings for the fiscal quarter ended July 31, 2019. My name is Dana and I will be your operator today. During the presentation, all participants will be in a listen-only mode. After the speaker's remarks, you will be invited to participate in the question-and-answer session. As a reminder, this conference call is being recorded.

The Company's earnings release, dated September 3rd, 2019, was distributed before market opened this morning and can be accessed via the Company's Investor Relations website at ir.conns.com.

During today's call, management will discuss, among other financial performance measures, adjusted EBITDA, adjusted net income and adjusted earnings per diluted share. Please refer to the Company's earnings release that was issued today for a reconciliation of these non-GAAP measures to the most comparable GAAP measures. I must remind you that some of the statements made in this call are forward-looking statements within the meaning of the federal securities laws.

These forward-looking statements represent the Company's present expectations or beliefs concerning future events. The Company cautions that such statements are necessarily based on certain assumptions, which are subject to risks and uncertainties, which could cause actual results to differ materially from those indicated today. Your speakers today are Norm Miller, the Company's CEO; Lee Wright, the Company's COO and George Bchara, the Company's CFO.

I would now like to turn the conference call over to Mr. Miller. Please go ahead, sir.

Executive
Norman Miller

Good morning and welcome to Conn's Second Quarter of Fiscal Year 2020 Earnings Conference Call. I'll begin the call with a strategic overview. Then Lee will provide additional details on the quarter before turning the call over to George, who will complete our prepared remarks with additional comments on the financial results.

Our record second quarter earnings demonstrate our continued success executing on our strategic priorities, our strong operating performance across both our retail and credit segment and the demand for our unique value proposition. We are pursuing a compelling retail strategy that takes advantage of a large and stable addressable market, and we have invested in people, operations and systems to support our planned growth. As you may recall, last quarter we launched our new e-commerce platform, including the implementation of our upgraded website, which was a significant milestone for our Company. Conn's has created an end-to-end online solution, allowing our customer to transact with us entirely online, using any of our financing options.

I am also pleased to announce our planned expansion into the Florida market, another significant milestone in the 129-year history of our Company. Florida is a logical next step for our geographic expansion as it is contiguous to our existing footprint, is home to over 21 million people, and supports an attractive rate environment for our in-house credit offering. To support our future Florida locations, we recently executed a lease agreement for an over 400,000 square foot distribution center in Central Florida that will open in the next