Good morning and thank you for holding. Welcome to Conn's, Inc. conference call to discuss earnings for the fiscal quarter ended June 31, 2020. My name is Diego and I'll be your operator today. [Operator Instructions].
The company's earnings release dated September 3, 2020, 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 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 their 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 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.
Good morning and welcome to Conn's Second Quarter Fiscal Year 2021 Earnings Conference Call. I want to start today's call by updating you on our response to the COVID-19 crisis. Before turning the call over to Lee and George, who will provide additional details on the quarter and the actions we are taking to navigate the current economic and business landscape.
The economic environment remains extremely fluid as the pandemic continues to impact many communities across the country. We have adopted a conservative operating approach that we believe has positioned the company to successfully navigate these challenging market conditions. Overall, our second quarter results were better-than-expected given the unprecedented disruption the COVID-19 crisis has caused. Cash and third-party sales increased 51% compared to the same period in the prior fiscal year, reflecting our ability to capitalize on strong demand for home related products.
Applications in the second quarter also increased compared to the prior year, further demonstrating the demand for our products and credit offerings. Despite strong application performance, the underwriting changes that we put in place earlier this year in response to the COVID-19 crisis drove a 36% decline in sales financed through our in-house credit offering. At the onset of the pandemic, we responded quickly to adjust our credit operations and mitigate the potential impacts, high unemployment and economic uncertainty would have on our business. I believe recent trends speak to our conservative approach as well as the resiliency of our business model and the value of our essential home related products, diverse credit offerings and customer service capabilities.
The favorable credit performance, combined with proactive reductions in SG&A expenses had a positive impact on second quarter profitability and earnings increased nearly 13% to $0.70 per diluted share
Chairman, President & CEO
Executive Vice President & Chief Financial Officer
Executive Vice President & Chief Operating Officer
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