Conn's, Inc. (NASDAQ:CONN) Q2 2021 Earnings Conference Call - Final Transcript
Sep 03, 2020 • 11:00 am ET
over the prior fiscal year period. In addition, we produced robust operating cash flow during the quarter and our balance sheet and liquidity position remains strong. Considering the disruption caused by the COVID-19 crisis and what we expect to be lasting changes in consumer buying habits, we are accelerating and increasing investments in our digital and omnichannel capabilities. We now plan to open between 7 and 9 new stores this fiscal year, which is down from the 14 showrooms opened last fiscal year.
We also expect to open between 8 and 10 showrooms next fiscal year, primarily in the Florida market in order to leverage our Lakeland distribution center that is scheduled to open in January 2021. We believe the digital investments we are pursuing in conjunction with more targeted new store growth, will enhance our competitiveness through the COVID-19 crisis and expand our market-leading value proposition to more customers in the future. As you can see, we continue to focus on successfully navigating the COVID-19 crisis while investing in our business to support the significant growth opportunities we believe we have in the future.
I want to personally thank all of our associates for their continued dedication during this challenging period. On behalf of everyone at Conn's, we remain committed to helping our customers and communities in this time of need. So with this overview, let me turn the call over to Lee, who will provide more details on our second quarter operating results and the specific actions we are taking to respond to the COVID-19 crisis. Thanks, Norm. I'll start my prepared remarks with a quick update on the recent impacts of Hurricane Laura, which made landfall in Louisiana on August 27. Prior the hurricane's landfall, we closed certain showrooms to allow our employees time to evacuate from the path of the storm. All affected showrooms are now reopened and we are focused on supporting our local communities as they start the rebuilding process.
We do not expect Hurricane Laura to have a meaningful impact on our third quarter financial results. So with this update, let's look at our second quarter credit segment performance in more detail. We believe that the prudent underwriting changes we implemented in mid-March have positioned us to successfully navigate the impacts of the COVID-19 crisis. For example, the balance of customer accounts, 60-plus days past due has declined approximately 32% since the beginning of the fiscal year, which we believe will lead to sequentially lower charge-offs for the remainder of this fiscal year.
We expect continued improvements in overall credit trends as newer originations benefit from higher FICO scores and a higher mix of existing customers. In addition, we are seeing a larger population of higher quality applicants as other prime and near prime lenders have tightened their underwriting standards. Strong cash repayments on outstanding loans within our portfolio exceeded typical seasonal trends normally experienced in the second quarter.
In fact, we experienced the best second quarter cash payment rate within our portfolio