Select Interior Concepts, Inc (NASDAQ:SIC) Q1 2020 Earnings Conference Call - Final Transcript

May 21, 2020 • 09:00 am ET


Select Interior Concepts, Inc (NASDAQ:SIC) Q1 2020 Earnings Conference Call - Final Transcript


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Greetings, and welcome to the Select Interior Concepts 2020 First Quarter Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions]

I would now turn the call over to your host, Mr. Nadeem Moiz, CFO. Thank you, and you may begin, Mr. Moiz.

Nadeem Moiz

Thank you, operator. Good morning, everyone, and welcome to our first quarter 2020 financial results conference call. Joining me on the call today is Ty Johnson, the Chief Executive Officer.

During our discussion today, we'll be referring to our earnings presentation, which is available on the Investors section of our website. I will start with Slide 2, where I'd like to remind everyone that any forward-looking statements contained in this presentation or commented on today, are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially because of issues and unknowns that need to be considered in evaluating our financial outlook and operating performance. Please see our recent SEC filings, which identify the principal risks and unknowns that could affect future performance. We assume no obligation to update publicly any forward-looking statements. Specific conditions, issues and unknown factors that may represent forward-looking statements are noted in detail on the slide.

In addition, we will be discussing or providing certain non-GAAP financial measures today, including adjusted EBITDA and adjusted EBITDA margins. Please see the appendix for a reconciliation of these non-GAAP measures to their most directly comparable GAAP measure.

I would now like to turn the call over to Ty Johnson, beginning on Slide 3.

Tyrone Johnson

Thanks, Nadeem. Good morning, everyone, and thank you for joining us today. I will provide an update on our business and COVID-19 response, Nadeem will follow with a review of our financials.

Since our last earnings call in early March, we have seen many economies around the nation effectively shut down for weeks or months, and now begin to partially reopen. The unprecedented COVID-19 situation has created a great deal of uncertainty. But as you leave this call today, I want you to feel assured that Select Interior Concepts is well-situated to effectively navigate the evolving industry landscape. We have a high-quality business, a talented group of employees, and sufficient financial resources to effectively navigate the downturn. The strategic investments in recent years to expand our footprint, broaden our product offerings, and enhance our online tools have strengthened our position to win into the recovery.

During the first quarter, we focused on strengthening our platform to reach further into the sizable addressable market in both our installation and distribution businesses. We continue to execute our multifaceted strategy to grow faster than our markets, cross-sell products and integrate acquired businesses. The progress was evident in our meaningful volume gains throughout most of the quarter, despite a late March deceleration in activity related to COVID-19.

First quarter sales of $134.4 million, declined 2% compared to the prior year. As we have identified