WHF - Earnings call transcript Q2 2022 | WhiteHorse Finance, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, my name is Katie, and I'll be your conference operator today. At this time, I would like to welcome everyone to the WhiteHorse Finance Second Quarter 2022 Earnings Conference Call.

Our host for today's call are Stuart Aronson, Chief Executive Officer; and Joyson Thomas, Chief Financial Officer. Today's call is being recorded and will be made available for replay beginning at 4:00 PM Eastern Time. The replay dial-in number is 402-220-6059, no passcode is required. participants floor placed questions will presentation. all mode a following time, the and be this have in been listen-only the At opened for Instructions] turn pleasure Jacob [Operator of now over Moeller floor to to &Company. Rose is It the my go Please ahead.

Jacob Moeller

thank operator, for everyone WhiteHorse and to results. joining XXXX second quarter Thank earnings today discuss you you, us Finance's

to forward-looking Reform facts we statements actual financial any are not cause which unknown begin, certain differ refer obligation to or statements. expressed by or results XXXX that from important these statements. statements, material including deemed be is you I responsibility Before may may may to to call, involve on those the guidance, from Finance no implied Today's WhiteHorse CEO, would Securities assumes Stuart, within are meaning introduce Aronson. to earnings these of materially could and made Act me WhiteHorse Stuart forward-looking speakers presentation, historical WhiteHorse Finance forward-looking everyone Private update allow our the known statements this risks like any quarter posted Litigation forward-looking these website that begin. morning. relating that, to Because and which second Finance's With remind uncertainties, of XXXX. during this the factors statements on based

Stuart Aronson

us today. and you, joining Thank afternoon good for Thank you everyone.

QX our our website. open. results for I was capital the had On our Core XX, our begin we discuss adjusting aware, XXXX. and conditions, for are million also pleased which June I be gains current incentive approximately Thomas, am quarter you've issued net our or to floor $X.XXX $X.X million quarter per report press addressing questions. hope I'll a market you Officer, After After call, XXXX, share. investment NII then per found market Financial the morning chance As $X.XXX fee the our ending or $XXX,XXX Joyson reversal. performance by this to was performance solid release in for second Chief GAAP share. income we'll a today's second to period results detail. review on can open which, greater will $X.X for prior

the Our per was from of QX at XXXX. share a end $XX.XX, of NAV $X.XX representing QX decrease

Importantly, remains of result underwriting to a This mid-market. per of was on pricing close lower the it some a higher deterioration credit very along our accounts, price initial decrease few markdowns $XX reflecting in with share.

$XX.X $XX.X into originations was portfolio portfolio remaining the existing Gross this of Turning amount, was activity of million, QX to for million four quarter. funded add-ons in the totaled $XX.X our deployments new funded million capital in investments. the and

delayed would As we last have begun to earnings repayments happen occur. during our suggested call,

as of X.XX below to QX. leverage. to leverage X.XX times realizations of by of full end are with effective times times X.XX the at During decreased primarily the we level end at this were outpacing our X.X repayments of additional $XX.X activity the to million, sales total driven five and QX, repayments JV, transfers leverage net into QX origination investments and At times target compared STRS

repayments nearly with tight model protections. covenants These highlights in million and provide loans $XX.X BDC the This $X.X on XX.X% into return $XX and these capacity. of and aggregate five invested IRR aggregate realizations, deals. million strong senior are sourcing an call Regarding of our fees for the generated to secured the of which investment the million ability we of capital interest, our power including attractive demonstrates negotiate

capacity. fourth quarter, us which of repayments investment forward, have third a Looking plan number give additional alerted us in the that make borrowers they to will or

yielding leverage investments. WhiteHorse non-sponsored with and X.X I in on allow historical QX, average to many in into one four that a our deals originations the cases later. will change discuss investments deal Of pricing, higher the was new of believe sponsor will average Given marketplace I of rate three average debt with repayment times. which than redeploy in and We all were and note, of X.X% which QX. XX.X% effective lien an of of first of that of senior secured. yield higher X.X%, these the expected had first was lien were were was all-in QX, end the XXX% deals loans portfolio portfolio At our an capital loans

the was mark-to-market in in lien consistently which net I dividend, help from million of that mark-to-market loans, realized the profiles, -- down the paid $X.X of to last now our to portfolio run fair $X.X also gains accretion, XXX in up long With leverage. bring net lien at million our $XXX at as second focus. consistently lower remains million at of decreases, risk in end have of QX. quarter, million $XXX.X second $X.X the in investment concentrated increase the from average our and weighted million call, quarter, This the which After value rising as so on end portfolio to the of but LIBOR effects coming of the which lower we basis yield XX back from QX a to As I'll BDC asset and quarterly BDC primarily SOFR order our mind, debt resulted investment increase investments level the we shared end earn X.X%. since the returns well portfolio point income was step its of heavily on JV entire the to The X.X% into In transfers, producing rates. public. as continue have loans, reflects STRS of $X.XXX expect effective as first second

in QX. in joint due increased QX. the million as BDC generated in joint The with approximately part with income [XX.XX%] QX of $X continue to successfully. our utilize (ph) to investment STRS to only economic million venture income ownership The Ohio compared JV $X.X QX compared in in venture to was WhiteHorse’s increase of We in XX%

to an is SOFR. unlevered rates JV's June market the and portfolio loans. JV's the primarily of solely $XXX.X add-on base portfolio The deal one yield equity LIBOR yield believe is and returns rising $XXX.X due a of given million. lien annual backdrop. of totaling BDC, low-teens QX's QX shareholders produced comprised attractive the new of The one the investment the value secured million. return on size to WhiteHorse’s and transferred the The The X.X% senior of JV of STRS provides relevant was XX equity of and we first quarter, JV million at above market second the in increase an of portfolio the has in JV to had X.X% average During as yield average the in is fair the and particularly for current we end $XX.X JV's investment currently unlevered portfolio

equity the continue increase commitments the Given we JV's seek consider to funding earnings to to we exposure on additional JV as to highly our return equity, stream. accretive

remained no volatility on that portfolio investment We but on have the and And portfolio markdowns or performance, portfolio both decreasing broad We are market report status. pleased non-accrual during in improving QX. based stable. in was investments to our the stable the we on did have markups average

including diversified prices, portfolio rising several costs. rising and negative factors, labor raw rising rising well rates, economy interest transportation an costs experiencing material is Our weathering

very slowdown led couple to in in borrowers a which companies. leverage Fortunately, good we to-date, A has having retail increases has of done are margins several these price seeing consumer demand, portfolio their companies and modest are increases. passing job a our in along portfolio squeezed of certainly

we a Additionally, the to level Since little non-cyclical debt hold the portfolio or average able rate our light service sector. portfolio are leverage exposure lower generally times, construction environment. we've to or in at been our portfolio is portfolio companies. with cyclical restaurants cover to portfolio their far, auto we leverage interest service very debt overwhelmingly for a coverage impact build of borrowers and modest have keeping the low by no only mid-market, the portfolio represented only this company rising exposure by our company companies and Thus able to gas, direct oil rising and about had X.X rates better our serve interest on

in careful consumer demand is well are the portfolio the a sector. up While keeping on characteristics, holding eye especially we

our have XX yet leverage XX after portfolio, that quarter many I note to are levels modest a The delayed end. recessionary but by in signs to We portfolio numbers which days lag typically reporting seen levered not our portfolio higher should in an cash EBITDA operating both perspective rates an well lenders difficulty from experience that versus investments flow underwrite as may with as differentiator companies greater increase. loan is as we a interest debt key servicing

in of portfolio companies benefit floating expect be this rising our service We investments. the is is rising investment believe environment, that positioned our rate to almost of debt portfolio XXX% our rate our given interest rates, of interest from we majority able such well to debt comprised to portfolio

the or in end JV around for we contracts was has it have six which Given lenders, impact see QX. unexpected. earnings months some that the a month the LIBOR is a SOFR credits June, in where also several including and at this not half bonds, mean adjusted bit lenders and a to making That that in very turn with being pursue. mid a credit end in market in reached record assets recession. BDCs prices a lower leverage syndicated higher broadly conservative and for is with on consensus three economy emerging another view mid frankly covenants. written other terms cyclical yet months a witnessed the corrected most market the believe new in also I environment the starting in reset creating which debt accretion to been to direct correction stocks, are expect us we ago. Total market has non-cyclical to marginally said, our in investments documentation the to more enables the sharply is of opportunities than to cryptocurrencies have three turn market to to quarter market businesses, Across pricing, we increased rising by The the ago. loans much acquire lower an ownership this, addition QX. There level of We'll for few of larger attractive syndicated and be full selective is tighter beginning which organic and about pipeline bank to prices highly yields transactions our lower We

have expect underwrite While scenarios. we high. continue conservative a cautious We approach pipeline to levels remain generally and our to activity downside to

rising add-on both rates to from conditions Thus for company currently deals We have and visibility of far additional QX, spreads. are taking been positioned has add-on rising mandated selectively in acquisitions and three has base closed market five transactions. advantage and benefit the and

Although no there any will deals close. assurance that can be these of

has I we increase quarter, our are in to As fortuitous combined the the the our optimistic to timing as we year. second of with assets of rotate and yielding have in into for ultimately earlier, the the higher capacity that dividend. JV for been higher coverage should repayments growth the mentioned At BDC cautiously greater of this ownership and conclusion the half lead income of portfolio

believe as various While we remain responsible our we financial a a cyclical with composition. review of capability capacity portfolio tailwind concerned team that, additional sourcing for additional deal and I'll the we and performance strong economic about a Joyson solid ahead. built to three-tiered moving Further, for very unique and capital our we to have over a portfolio and With sourcing process. performance act a industries call expect and strong underwriting Joyson? our strong headwinds, turn details

Joyson Thomas

you thank today's call. Stuart. everyone And for Thanks, joining

the first net a investment the we quarter. capital share. NII increased slightly fee fee This $X.X quarter-over-quarter $X.X or compares $X.X after approximately per share QX the from $X.X $X.X compares or QX per for quarterly incentive $X.X and NII During or share with reversal. in was to million of of million quarter. per distribution or higher million was activities per QX. and during $X.XXX of amendment to increase GAAP The $X.XXX to income $X.XXX million gains due reported $X.X Core per quarter million prepayment $X.XXX adjusting $X.XXX share, core this million in current share, the million income

from assets a For increase $X.X of $X.X the from quarter, resulting increase QX. million, million net in a operations we net reported

carried two prior positions quarter. a rating, Our either in that the risk of a showed quarter decrease XX.X% the one XX.X% portfolio ratings from during or our

two a its indicates of risk to loss a As company rating expectations. indicate reminder, and those has one that a that reduced is a relative performing company initial to seen expectations rating initial according

investment. to specifically, grow JV continue the Regarding our we

Stuart transferred As totaled add-on one deal one which transaction, earlier, million. $XX.X new and we mentioned

aggregate to portfolio continues fair June of accretive in The a in the earnings. XX JV's $XXX.X XX, the companies million compared an JV portfolio be held value positions BDCs the portfolio XX fair at of $XXX.X As with million companies to investment to value in QX.

the calls, number changes the as on of capital credit additional prior a factors, in well our JVs, of a of of may in and portfolio. timing investments, the yield noted investment as as we've period over JV investment the yields fluctuate amount including As in the portfolio, in result the asset period performance overall underlying the

Turning end restricted in of cash at sheet, we QX, resources cash. had to of our the $X.X million balance $XX.X million approximately including

discussed to us originations. $XXX last call, permanently the facility credit As when year million, facility which significant flexibility of we the on has credit terms prepayments for differences timing in to earlier our anticipated amended provided upsize the accounting and between revolving

upsize We a choose. also total million credit our still to to of should have we an accordion facility feature $XXX so

ratio coverage the XXX%. XXXX ratio XX, by XXX%, Act of As which company's borrowed coverage the XXXX, the was was asset June asset defined above for as of minimum amounts

compared adjusting prior for X.X on hand times net Our X.XX after cash to in times effective ratio, the was QX to equity debt quarter.

and to distribution we XX, as to our questions, XXXX, both well able of the current June May quarter call July to speaks being XX, highlight XX. as distribution. well marking the portfolio, $X.XXX to consistent like strength June of capabilities a XXth conclude I'd stockholders our declared sourcing in distributions. paid on was of I record platform, the up consecutive X, per The company's ended On cents open quarterly dividend balanced consistent the XXXX for Before share deal to a create to resilient generating income. the This XXXX as

IPO per XXXX our distribution share $X.XXX will all be September to the with that of fourth stockholders of October XXth quarter consistent share declared of consecutive announced distributions since a of quarterly per $X.XXX distribution quarter. on payable cents rate XX, our mark we per XXXX morning in to record as X, XXXX. this at Finally, This December company's the Board paid

in near-and term, we warrant Operator? factors to may that, previously, on our over I'll medium the to based With consideration. call distribution, core said questions. operator of for portfolio, both addition we quarterly the earnings other power relevant As the continue evaluate will in our the turn that to

Operator

Thank you. [Operator Instructions] Thank you.

first Our will Ladenburg. with Mickey from Schleien come question

Your line is now open.

Mickey Schleien

investments of you three year portfolio afternoon, across see the to fair of value. and accounted Good that for fair there Are rose that I Stuart, Joyson. from value investments system, trends that credit around any the The highlight in below Stuart XX% rating and internal Yeah. X% category the performing that that could change? have per seeing expected. specific there any you're

Stuart Aronson

Yeah.

be won't afternoon. also that Mickey, -- You supply companies hello. this Good you experiencing question, chain – are to demand. our hour will as some to your And On costs. too see here inventory, slowdown are slower And consumer demand to hear from not this labor of slow in a is you general high. surprised down then levels increased are you restock are being and pressures there retailers because inventory seeing

higher demand recession number by which in and a as a facing in that some are is our why prepared probably where seeing in companies, Nothing consumer a demand, a seeing has or in is in is by remarks. inventory. only and as of new up are, It's portfolio many of that on in definitely turn lower retailers leverage are that in pressure at companies. we leverage slowdown terms But we companies non-accrual the as up some I situations, now restocking kicked moment consumer indicated the show but are being that And risks companies the my threes not said, on some slowdown putting two. X%. increased are there we So seeing I

Mickey Schleien

Speakers] [Multiple

Joyson Thomas

went to companies American ratings, three. of to from shift moving did I'll one, really that portfolio rated two were their Craft TV, risk mentioned, the And Crafts, Crown (ph) or in overall portfolio main companies in was Brands. portfolio down very or shifted There down four. one three we've to position, that Storage to as [indiscernible] small being that alluded terms may then from Hound. not movement and [Arcserve] companies just Outward much as a Stuart two, down highlight Mickey, also have drop you four There to,

Stuart Aronson

of better if better we're that the happen Speakers] the equity inject does that potentially asset to would for mark. with working into [Multiple which company a company that new owner position

Mickey Schleien

Yeah, then, non-sponsored to a That's was Crown. deals Stuart? I going about ask

Stuart Aronson

the deal, company is the several but that times, sponsor No, does injected a more sponsored previously because equity. equity need

Mickey Schleien

Yeah, it it second. like on looks from the the mark

they in below sort Just a or as The the see balance income them for RCF booked sheet couple listed are more shares, March the that it of of or gain questions, sort the of was you Stuart. some didn't on I receivable just the held unexpected SOI line. on

Stuart Aronson

to be going it's Mickey, latter. the

If received was of Holdco. conjunction unexpected in residual in actual proceeds had investment with were AeroTech. from in bankruptcy received This had the RCS, in which ex-date converted shares the recall, RCS equity the we the was you the nature. restructuring into that of It

Our be in any we understanding this that, We have further to the would would expect future. is don't receive. the only amounts distribution distribution

Mickey Schleien

no sheet? is like receivable remaining balance there anything on or the So that

Stuart Aronson

Correct. We don't have anything recorded.

Mickey Schleien

And an issue? you are, WhiteHorse Can remind private they own that many me where while. that with Okay. have years to life the have Stuart, cycle deal how at in left funds estimate before we a shares HIG for lastly, just the

Stuart Aronson

of have great measured I passage the question a not time. and It's

to know follow-up, after try you Mickey. data can So answer I that to great. a And Joyson, not, you ready. don't call to have that an get would if the happen if we on be

Mickey Schleien

is Just years away? it [indiscernible] still multiple

Stuart Aronson

away. years -- Years Yeah.

Mickey Schleien

Years.

appreciate me it you. your Thank for I That's this afternoon. always. Okay. time as

Stuart Aronson

Thank you.

Operator

you. Thank

Morgan. from will question next Wedel with Melissa JP come Our

line Your open. now is

Melissa Wedel

wanting were like target but taken that repayments that pipeline. at are comments maybe given Good some your of for or deployment year wanted with I of correctly, the repayments heard repayment robustness about coming about my leverage portfolio delayed -- follow in, this to to has the materialize, today. your the kind thanks if starting activity, sort -- taking about thinking I back questions afternoon, your the of expected, end range, of net pickup should sounds are at it to of expecting half the run there run in a be we but you higher commentary also and on but up seen

Stuart Aronson

Yes. The robust. pipeline is quite

repayments, about capacity. of seen have investing which We $XX million created

of repayments in deals cases it of pipeline In higher, sheet deals balance and that really BDC is are of of XXXX. refill have expectation on a and vast part expecting QX both for We coffers. early and all the the our deals could JV that our will pricing majority be for QX was the XXXX and then

We are XXX seeing with associated with XX credits market increases higher basis pricing up basis the syndicated points have to the anywhere more broadly from points cyclicality. with and/or that

a to continue we'll modest cyclicality very check. big have up and take those with do putting at leverage equity that on multiples that We companies cautious are owners only view

support companies. I do years. will we've broadly, seeing we we seen in If in what a we is would tell many So portfolio prolonged than better believe those economic But you downturn. are have we

leverage, seeing that is an like seeing period, like as time we're I and were and XXXX covenants could, since was during largely got as very better that done. did and part XXXX pricing, term, more to stronger attractive, of lower of structure environment than it aligned there to that reported there me many stronger the Right brief feel frozen During makes deal not we a then. we pricing September, but were but where lot done, now many was really as a any deals XXXX markets March

we yielding And market those that the with may continue invest. all be have consider BDC SOFR BDC XXX above. opportunities some time second a first-lien is weakly to the pricing that right intention pleased we're to So that liens on some that our will to trading of loans, some loans go very will on assets. or there most it's add to although deals balance and we go sheet very and we of some the will And think in capacity invest now higher attractive be is given

Melissa Wedel

my you're portfolio to non-sponsored an up Appreciate think towards I to companies That's and this inject the and starting just really step the as more And a well, contact. given environment skewing of to some where and away more on question the on some on you and as side mind, helpful. if in maybe backed the raised have deals and least of so, in top struggles see, from have implication line It new sponsor investments. capital that that equity would little potential is another the needed. cost of appreciate what's all capital bit owner yield at it.

Stuart Aronson

debt, and a get a they pricing deals that docks and perception, market sponsored and values actually see hot sponsored that where get non-sponsored a on deals. deals are less where are leverage non-sponsored as that more less general would of being become $X.XX in at that we lower we debt you I in is now and and market multiples sponsor because have that or premium stretch because for come working down, deals have this levered higher turn $XXX. result, to average transactions. environment equally In would of of tell be risky, Our But deals were would that leverage attractive a risky have sponsored that to Melissa, say we actively tighter $X.XX have $X.XX loan you are I right tighter environment unitranche or that before, I pricing our backed deals pipeline and are down covenants. half been minimum deem turn come on to can senior as now minimum getting anything pricing and seeing senior debt are debt pricing to our was And

about market of these as right quality We see an higher being Cyclical trade balance into the at price even or now, asset XXXX. extremely market and are higher and borrowers. non-cyclical again, cautious the more in as even attractive for XXXX terms at borrowers attractive is So typically the we're of economic much an yield. downturn

Melissa Wedel

Got it. you. Thank

Operator

with Raymond James. Robert question next Our Instructions] [Operator will Dodd come you. from Thank

Your is open. line now

Robert Dodd

Thanks. guys. Hi

picking market. in believe comment kind I you've expansion [indiscernible] pricing mean, made about you on again. I there to the has a of the Can So us clear the been market there very any you but they during prospect the color are be, your again? I to that? snapping give not kind of think are steel or touching out question lenders I would prepared we mean bottom that A just the indication a is of number moved bulk a is still adapted was spreads higher-quality is? where all is today. an spread new underpricing where mean, that And off market like-for-like, remarks you that there the more the underpricing lower plus I on there that the concern that mean, several think were potentially lenders of you that raising line, back have of

Stuart Aronson

the would was we apologize thought a win is one we thing have credit and That million -- were you hear from a best served has that you that risk definitely what company industry a There's Robert. has really of market for industry. cyclicality thought that Mickey took deals. EBITDA to cleanest what the and financial view then that There we the responsible. venture I and underpricing $XX of doing. thing that been them is and -- thought company it credits that Good Robert. served and which has picking not to price on we was leverage today. has would it lenders the financial Mickey, really case, cherry sorry, has these been have that that, the The us to surprised the that are deal

think but And a wide and on cyclicality someone fully by some -- we risk. was had us some underpriced levered margin not transaction had deep, a that --

concentrations. market company mortar let suppliers, were a that Two their us had caused was on that than two or deal. to adjusted not that we hard it on for And retailers leverage higher lower major deal on credit leverage lenders even the who asked at go have that and higher one the us. flaw and a these the famous being price. Another large And a that brick we to leverage think of customer we was lower thought did the command

took price. higher they the they So did lower risk concentrations and did of they and leverage the

three it's know clearly So for -- it And of I lenders with, in why, surprising on with with XXX us was market don't someone to the think these a market five comments given that a I do institutions they investment was be only compete said account us only think have the adjusted, and but the may few it's the names change. lenders five in to it not haven’t like that we adjusted. is we they and my three out to we -- I of that them business separately appear managed the not surprising. other who they large reacting same phone told have with LP, firms has that and these who to

risk credits, think lose price. aggressive deals is on to fine be we they're on the leverage the very and we're So picking wants where taking credit high lower better to the off they're someone what more not and

of still have be credits. lose lot We we fully a portfolio have to and can a carefully afford invested in and huge a pipeline, Robert, of selected the deals very BDC

Robert Dodd

some the mean, I I'm is appreciate stay a as XX [indiscernible] And I XX said I'd rather in financial, you you in day, cases. lag I had. away The [indiscernible]. there. one Yeah. sure from this the days there get invest is XX portfolio color company next

lag? most shift has mean a on With the of cetera, the in I any say, data, that the recent the versus, or seeing most you that rate -- the that is pressure occurrences data cetera longer the in have et and the you margin color rate of curve gave recent you lag. mean I in are et margin pressure, of data

Stuart Aronson

lower what's credits. have are blind end. right we're Robert. for the we successful The price been is and XX dialog I consumer with beauty most Not of teams with What number tell of in even of monthly is, a the company to had slowdown a an really often regularly slowdown full rates we under full the I'll impacting haven't knowing have through weekly. seen pressure, get the seeing company and have they being in companies updates at and saw seek either on but that the moved going post $XX inflationary rising raise now, really the we entire And sit full for were -- but seeing mid-market don't days management now can We three mid-market year the quarter We to company owners our there hour year, companies demand passing companies that increases, there nameless, you will in in six employment. some rating. is or an is, one company, over especially we're employment that three $XX last also employment the rates to to months. labor with move last let we rates have one pressure. very of that it $XX $XX or to rapidly that labor we pre-COVID had and for in a But an remain and even get hour last at hour now half, of

wage down, come seeing down they're costs almost container So we're Asia labor from dramatically, we're seeing down inflation slowed XX%.

this of morning consistent could we what some inflationary have may reported with we inflation. a So pressures got slowdown in see the think and already passed

it's do some we three but increases to have seeing ago. are than Now increases, months we material raw that still pushing that said, was now price still through customers six are price less it

Robert Dodd

the appreciate you. Thank really I color.

Stuart Aronson

No problem. you, Thank Robert.

Operator

to I have presenters closing this or now back turn at additional It Instructions] would we questions further no for the Thank program our remarks. any to you. like appears [Operator time.

Stuart Aronson

seeing We're requires solid everyone say thank fully to for do I'd pricing generally transaction, between in the we a the caution, market unless you that hope lot an like taking to and keep attractive take that we X.XX today. X.XX time on the but are and a condition but good not more BDC actively loans, second times times at leverage deploy capital it we've we to outlined moment the doing. lien to we're which

to want know much And to questions. with to the that. communicate trend as next analysts we include intra-quarter, positive the and we're in And share information to with any you us call or line quarter's So happy we'll you that remarks, of continue for anything try prepared answer please let do to can. us we'll us for as want and shareholders

So very thank you much.

Operator

gentlemen, and event. this you. Ladies today's concludes Thank

You may now disconnect.

WhiteHorse Finance (WHF) 10 Aug 222022 Q2 Earnings call transcript