Select Interior Concepts, Inc (NASDAQ:SIC) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 09:00 am ET

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Select Interior Concepts, Inc (NASDAQ:SIC) Q2 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you. [Operator Instructions] We'll take our first question from Alex Rygiel with B Riley.

Analyst
Alex Rygiel

Good morning Bill and Nadeem.

Executive
Bill Varner

Good morning Alex.

Analyst
Alex Rygiel

Bill, I just want to welcome you to the conference call and to select and wish you the best of luck. In your opening remarks, you mentioned you're more excited today than the day before you started. Anything in particular that kind of stands out that makes you more excited today?

Executive
Bill Varner

Yes, I would say the growth prospects for both businesses are much higher than what I had anticipated in my early evaluations of the business.

Analyst
Alex Rygiel

And are those growth prospects -- are they organic growth prospects or are they acquisitive growth prospects?

Executive
Bill Varner

No Alex, both. I think, organically. there is significant room to grow. Both with the locations we currently have as well as opening up new facilities organically in key markets in that demographic smile that I mentioned. But in addition to that, there are other opportunities for us to grow in what I would call the white space that we have in that demographic smile through acquisition to accelerate growth.

Analyst
Alex Rygiel

And understanding that in your first 60 days, you probably spent an enormous amount of time focusing internally on the people and the business itself, but have you had an opportunity to talk to some of the customers, and what are the customers saying today about the macro environment?

Executive
Bill Varner

Yes, quite frankly due to pandemic situation, it's been very difficult for me to communicate directly with customers. So, what I've attempted to do is to stay as connected as -- I'm sure most people here on the phone are leading as much as I can and maintaining the pulse of what's going on in the marketplace combined we're talking with the thought leaders within our own business continue to determine what they are saying directly in their day-to-day communications.

Analyst
Alex Rygiel

And lastly, your playbook sounds very exciting. I suspect the Board of Directors is on board with that as well. But, any thoughts on sort of the Board of Directors sort of priorities or do they seem to fall in line with yours as well.

Executive
Bill Varner

No, I think they're, I think they're clearly in line. I had a extensive call with them most recently to share with them my first 60 days and I found the Board to be incredibly supportive and excited, quite frankly, about the prospects for the company and combined with the new people that we're bringing into the business and the changes that we will be effecting.

Analyst
Alex Rygiel

Very helpful. Maybe can you remind us how your business lags building permits and construction starts and how we should incorporate that lag into our modeling for third quarter and fourth quarter?

Executive
Nadeem Moiz

Sure, Alex. As you know, in particular on building starts and permits, that really starts impacting the RDS business because that's really where the single-family focus is. And as you know, we're in the back end of the construction cycle. So typically, we're