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
Executive
Nadeem Moiz

getting in month five of a six month build cycle. As we've seen housing starts and permit activity tick up in May, June, we would expect to see that coming in the four to five months out from that. That's typically the lag that we see. The second data point I would share with you is what we have seen as orders have gone up, we've seen our traffic go up and we've seen that pretty much in line with the magnitude that we'd seen on permitting an order activity. So those are all very positive trends for us.

Analyst
Alex Rygiel

Very helpful. And then as it relates to Momentum Design, are there any data points you could provide to us that could indicate the early successes, I don't know if it's number of customers or number of homes worked on or geographies that you rolled this out in but random data points you can provide to us about Momentum?

Executive
Nadeem Moiz

We absolutely look -- it's the customer -- number of customers has definitely expanded where it's very targeted launch at this point. We started with a soft launch late last year, very successful. We're in discussions with some very names that you would know, we are in month five and six and some of the other customers that have already launched this. It's just the possibilities are really quite significant in our ability to capitalize on a fully integrated back-end model, which is seamlessly integrated to online portals of builders and as you know end consumers are getting more and more accustomed to buying online, including homes and the builders are pushing their traffic towards the online portals in light of the current pandemic.

So this is a great, great, great solution for us and the way we think about this is vis-a-vis by our competitive set. And as you know, it's a fairly fragmented market that have not made been less in technology, have not tested this, we believe that this is going to be a huge opportunity for us to continue growing faster than the market growth rate, and be quite successful and being, having a very sticky sort of the business, which is other aspect of this. Once you are fully integrated into our back-end, it's really difficult to displace this. So we're thinking of this as a strategic technology game changer for us. And we haven't really seen much out in the market within the competitive set.

Analyst
Alex Rygiel

Thank you, Nadeem and welcome aboard Bill.

Executive
Bill Varner

Thank you again.

Operator
Operator

[Operator Instructions] And next we're going to go to at Keith Hughes with SunTrust [Phonetic].

Analyst
Keith Hughes

Thank you. two questions, first, a big question, -- big picture question for Bill, you had discussed a lot of back-office infrastructure work totally to get that my question more is on the integration between the two segments, specifically, what kind of synergies, can you pull, what areas, what would these businesses and look like a couple of years down the road, if this is successful?