GSHD - Earnings call transcript Q2 2020 | Goosehead Insurance, Inc

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

Operator

Thank you for standing by. This is the conference operator. Welcome to the Goosehead Insurance’s Second Quarter 2020 Earnings Call.

As a reminder, all participants are in a listen-only mode and the conference is being recorded. [Operator Instructions] I would now like to turn the conference over to Dan Farrell, VP, Capital Markets. ahead. go Please

Dan Farrell

Financial good released Chairman and website Colby, us are may earnings found Colby, today and have be everyone Thank to also to access Chief afternoon. ir.gooseheadinsurance.com. this Executive at Jones, our Chief Mark and and Operating which Michael our By Officer Mark now, Chief should was you, announcement, Officer; With Officer. prior of on President which Goosehead; call,

accordance everyone cause implied formal to predict, are to forward-looking them. Before not management of I therefore, filings or the placed not other certain to Management expectations, that remarks, forward-looking would out except for we from We not intentions I that we subject discuss uses financial the that or any to statements, point non-GAAP remind disclaim in extent obligations applicable include which and part GAAP. in statements SEC Insurance. or are this future uncertainties our that today. Goosehead results with statements these difficult update revise of discussion to statements, measures call, facilitate like items those we of We impact estimates non-GAAP which be tax variations and discussion prepared our are and operating discussion based differences representative factors are any condition the performance certain undue to future actual capital expressed be may today financial required are other The and differ begin will detailed with our as planning, that business. of also to you amortization during of These operating of law. risks caused the potential position, and depreciation, evaluating our refer believe could assumptions, measures need various our to by uncertainties the comparisons that for to management in and our forward-looking projections on all monitoring not to and more when and the period-to-period measures performance, should could of excluding core guarantees from consider and statements. investors these by performance. results of recent useful materially reliance metrics We a forward-looking in financial are financial by structure, upon risks,

we use more of including non-GAAP earnings measures, most of information to release. today’s the reconciliations to our measures, regarding these refer financial For comparable GAAP measures you financial

after the and I’d company’s this to www.gooseheadinsurance.com. addition, over being shortly Investor call ends Jones. call will call available portion is In of Relations on the to be turn With the webcast Mark the like archives that, version CEO, at website

Mark Jones

XXXX Dan, as quarter for quarter the strategy outlook and well welcome around hand I’ll well for it technology update Officer, our call. and on to Thanks, as update second you Chief actions on earnings of the an then as over to investments results as our year. overview full I’ll to Mike Colby, an of human Operating capital our and COVID-XX. President some and provide our our

and CFO, will Colby, quarter Mark second our into on go results outlook. Our then detail greater

market are lens of leadership manage even lifetime. has and owners deeply long-term in senior Before second to because reviewing owners. of my majority our is of our up share global we our Every during philosophy this and are think has We during like management worth vast deliver their the like the member committed our which owners tied business to stock. term philosophy. potential, Adherence reaching collective team One, Goosehead long-term the full net business achieving through allowed results quarter, long pandemic. I exceptional for would view we to to us results a the

full our create This external value to drive focused. with particularly we we toward of we externally successful world create maniacally decisions value COVID-XX. while grapples focus are geared All been means others, two, are are for the and which potential. has our Number over because powerful long-term the

with or the agents wringing clients, are companies our market, approach paralysis technology by like lesser guiding at a who for hammer, a While everything investments business of different to and their were our objectives a worry experience for our a the we when results happen, with to with The way, in heavily greater universe, each so then testament this. This we a we with And hands degree, experiencing making technology, tech-enabled. our find center built and creating for many our to was the consumers, use three, others and our start were are things partners. and you’re a try business are better very And the which nail. looks than of includes is see it. client a

to disciplined economically focused, all all are connected investments input rational. And levels the and tech market. organization, Our people they of our incorporate from

highly sustained a book our Our human with actual and retentive leverages strong produces business, growth approach capital organic profitability. drives of

that free are with very investments you of immutable the follow Our the powerful client. start market always law and a

Now which competitive for results. turn platform tremendous I’m success. progress wherein, well strengthen our extend position Goosehead’s exceptional let of We quarter, demonstrate me future us and a continue we to with moat. and our second areas, differentiated in formidable, number very our pleased to quarter second made

First, team high-quality franchise sales corporate prior total playing over and recruiting XX% of headcount the agent most importantly, XX% to organization, a talent offense been aggressive with count growing has adding and year, and respectively. amount our our perhaps significant

client to out new Additionally, we technology to improve our expand continued and referral experiences. network partner the and agent rolled proprietary

the of during environment quarter. remained proud full deliver and service, to productivity both our level times, practices, which our of virtual high an on best During clients. back-office sales with these almost ability improve we our client I’m these allow our accomplishments and wallet entirely agents overall share extremely us the of drive of to laser-focused functions in unprecedented achieve operating

tools indicator our evident organization efforts these key reliable Our new of were regardless by of and uncertainty. and to strong revenue partner $XXX our a of quarter our XX% future our a were Total is growth quarter levels driven increase stable second premium a franchise is continued and premiums on in ago. business the strong agency Goosehead placed clients million, compared demonstrate are that of Approximately an focused XXXX, externally versus channel whole and most year XX% leading The XX% and partners, of turbulence of growth, premiums relentlessly growth. retention. the benefits technology business economic industry-leading utilizing to continued of high second in

important in mind continues revenue. renewal to keep the how more business the XX% of shift it convert Franchise and of to the on terms. on premiums mix our term As to a is XX% we In policy first earn Franchise Channel, Channel, to royalties

XX% our revenue see we XXX% client policy converts Given renewal. mechanical as growth rate, to approximately from retention a new

strong premium revenue growth spring-loads growth strong today tomorrow. So

our during a result of several over quarter Our the past revenue was years. growth efforts the

We bodes total ago franchises the last signed number royalty experience or growth. growth and year in a for account total with experienced of the than experience revenue for years our two We Franchises pipeline well only year. one of and quarter, agencies XX% but represented currently less significant with of impressive $X.X deliver EBITDA of revenues in with and top ended We increased the $XX.X XX% During while million, quarter an our an franchises, the up expanding line increased XX%. EBITDA increase quarter quarter, achieved were operating margin revenue year of this franchises XX%, of record core XX% organic quarter, while more X,XXX to XX%. XXX. while million future to from operating XX% signed of of franchises, the our

a XX% for years corporate circumstances. Corporate the fuel net ago expect We in franchises period. up to the of Channel truly remarkable many the feat a represented in the that was growth year The agent quarter increase our new count end XXX, Sales agents added come. under number powerful a of will of record XX agents at versus the quarter,

development Channel mentoring Corporate well this significant our quarter, a we The virtual we a the continued a Franchise for the to sales driving Texas, also technology six resources the began the for of Corporate our profitability helping offices plays and Metro-Houston the success and in coaching through testing and pilot Channel. The Channel expand area Franchise drive among is year, for Houston, months in as footprint participants. ground highlighted and During and practices office. in that and third in XXXX, Colorado best planning productivity Channel. training Charlotte, effort new Denver, Franchise of North a initial role our expanded Carolina in and the growth first XX% office being have as growth Last opened of program increase of

organization. Corporate to and Channel and Franchise Channels as our to success integrated as overall an manage in Corporate continue investments whole. integral are the We the Efforts one

in broader strong to quarter, across impactful talent addition In agent have recruiting we the the added organization.

stands currently individuals XX at at to XXXX. the team compared end XX recruiting Our of

we doubled than Over our road have team, systems our the more map. year, information progress is significant innovation which enabling technology on last development

a transitioned team online seamlessly quarter implemented our to virtual was to now client our fourth and are environment are of unrivaled Over clients. which to our XX% of a our provide meaningful average with Promoter clients is overall of on experience team of an on service insurance online having buying the and The Net the XXXX. positive service portal world-class impact Score show combination XX. service continuing service in using Our clients portal portal, as the the

been Net this able Scores X/X deliver than identify, industry higher Promoter our As practice. best level we’ve to a of while our service are extraordinary to that any of company are roughly cost reminder,

of his guidance enhance and comparative advantage. strengthen ongoing the in detail making and we’re platform provide his XXXX will Colby you strong platform investments of the more innovation our raising rigor to in with will year, for will first the going on technology client half the cover continue efforts our overall section. Additional are experience results details carrier on to Based of agent our further and and and remarks. competitive which forward we momentum, Mark current integration Mike proprietary projects the

excited announcing future also again, extremely Mark, this special prospects detail. a business. at We’re will I’m dividend, our for the time about which

we’ll turn making to continue half share the in want enabled market. and our us technology to We I growth grab with our that, deliver thank offense, our industry-leading Goosehead over efforts call on that staying Mike and over and personal And are first have the Colby. XXXX important lines shareholders. I’ll investments continue enormous our our of the needed the organic for entire team and partners to addressable referral for people of to the clients, incredible

Michael Colby

Thanks, Mark, call. on the to everyone hello and

three XXXX, surrounding create our a This demonstrated seamless our we’ve for the three, was our areas. development Over road the acquisition to technology see in transition response our One, progress operating of half to and advantage development strategy pandemic; our virtual areas. these in within substantial elaborate COVID-XX team. map; I’ll continued several key on competitive business. talent the continued environment first on two, to technology new investment

response COVID-XX our First, the to pandemic.

As mentioned partners. all all earnings functions business virtual new on mid-March. onboarding and transitioned to new and business development and our in we franchise marketing for new and employees operations includes call, efforts, first back-office efforts and activity, quarter service sales recruiting client environment corporate This a

As in entire of continues the we this continue strong date, across and our to business. operate results environment virtual this team performance to see

key Our all indicators year, agent for both team channels, and onboarding delivered has of including the beginning client at sales retention. or business recruiting outperformed new productivity set the and internal in expectations our performance

investment and Additionally, we’ve qualitative a team our which cloud-based or as remarkably our cross-selling partner the testament solution technology expectations tool, to years referral provides NPS meet such business exceed and as and and is percentages. on talented complete marketing This voice of our continuity. infrastructure, agile such our been able in to metrics,

safe so stable partner sources to our to and team back provider our proud our to to and continue team, this a will to requirements. employer crisis. referral to our very do together and when time look offices recommendations it’s government forward We’re of our in agents CDC clients service and We follow during bringing be to

current strong progress continued Next, map, our technology we have on uninterrupted to environment. the make by development road

effectively across on engage clients our in tools efficiency the we and margin experience and agents allow our discussed, the improving we market, we them provide improving to is to which business. them driving in focused technology compete creating way investment the that provide we’ve the to As strategy opportunity the our by

a flood intuitive our allow Over the and online. foundational to engagement results experience deployment lines, agents rating carrier required This mile such of from enhancements with year. development our to this progress very directly flood opportunities "issue capabilities have we’ve will and simple and comparative to been insurance the clients landlords. agents big complete to continued new to our integration with this and integration. that Early policy this as to year, accomplish and experience" last We’ve provide on build tool on efforts rating includes and XX% also omnichannel our sales components property insurance a client made encouraging, additional to us insurance course efforts for of the product flood up more provide insurance platform

a also rating to As insurance provide flood process reminder, advantages. but a allows creating more important more coverage provide streamlined this clients, of retention our to substantial us

course we’ve intuitive year, of out client-facing rolled of enhancements have to that over for the our the portal the clients made user. the our portal make and Over more XX%

experience. allows on their carrier to effort important is an and us robust an allow provide service our back-end progress on terms to self-service that purchase clients made capabilities. integrations we’ve Additionally, that provide more and This enhanced us engage

portal. XX our Mark NPS the As earlier, on for clients engaging mentioned is

be areas and throughout which we on feedback are year, are based of the important overwhelmingly more should development smaller the agents from that the enhancements One not overlooked of make clients.

one not platform. year, enhancements new experience, features cumulative to these technology overall effect already enhancements and to rolled releases the close we’ve is version that there’s out our Through the of material this multiple very While X,XXX powerful. user to is

and XXX% us technology we The opportunities team, the to months. capabilities employment and of Lastly, for grown created offense by having size new has with development XX environment play the development of in entire investments addition the accelerated courage and further our current our prior the And enhance team of made their team over proud them. the the echo delivered talent. extraordinary challenging to in most They adaptability uncertainty. I’d couldn’t thank to we have more commitment face developer excellence, Mark’s high-quality results environment, in demonstrating and for like our sentiment of be

committed to financial color turn Our provide over team have I’ll that, to on space. capabilities Mark our call our goal in and our of remain to their industry demonstrated enthusiastically unmatched remains leadership With the performance. Colby that

Mark Colby

Mike, good Thanks, afternoon the call. and to everyone on

ASC XXXX to my discussed as results release. XXXX, supplemental for our on provided of second XXXX has earnings accounting ASC second if A accounting quarter as XXX against schedule purposes, comments XXX. comparability a quarter in XXX For our the recognized been under will reconciliation be ASC

XX% from Franchise shift revenue continued faster-growing mix towards implies our The convert future year Channel. ongoing future total over retention premiums, in new growth an XX% time, quarter our This ancillary had ago. XXX,XXX increased XX% At Franchise leading of by of agent after business For of growth, driven $XX and written Franchise of renewal the second $XXX in XXXX, important growth to increased indicator at and royalty million. which policies one core revenue included of premiums XX% increasing year quarter million. as business $XXX renewals. the a million to fees one, rates, embedded XX% the generation premium premiums for Corporate end, we XX% increase new strong to our force, segment growth productivity in and to being from to growth This is continued significant premium Channel high business

well positions $XX.X quarter increase Our growth prior XXXX, long-term the period, million million. ASC rapid XX% year-over-year the grew XXX, an in million policies revenues QX to under compared and were success. core consistent for and for $XX.X revenues XX%. reported to of $XX.X million XX% if in $XX.X us to Revenues premiums both increased In and year

now the of a and from franchises, to this franchises, our franchises our increase reported XX% of continued compared prior if sustained an operating with of up under Channel year XX% strong ago, an build franchises year continued channel. productivity of During operating driven business high We’ve renewal within higher we ago. total fees $XX.X from second expansion end up generated X,XXX combined results new increase had the operating with franchises one XXX quarter, XX% At from national a on XX% year of royalty growth ASC Franchise revenues strategy year ago. the in retention. XX% million, plus in and our second by the core total quarter, levels XXX, to from the of represent Non-Texas

very continuing and which at pipeline XX, recruiting strong. remains our are currently to Franchise We grow team, our stands

continues candidates outside with resonate also proposition value Our insurance the franchise to from industry.

an of was quarter increase the driven of XX% increase recruiting the to take million agents revenues ago reported of will XX% from XXX, period, core of further to in the our assist If continue increase to end are and an Corporate our under the XXX, year levels second at the Corporate by continued invest ASC quarter, were in and momentum team We ago in high an growth headcount quarter. retention. of our planned excited from advantage sales Channel the year second $XX.X growth. of

a the large has are the because historically recruiting had for onboarding, Corporate onboard Channel, candidates. and to recruit of As sales months exceptional successfully our our and reminder, our little of on impact summer volumes largest ability college for Corporate COVID

corporate virtually, for For most the June trained per during revenue their set example, our agent agent month. class, training who a record

We continue agents sales invest our virtual agents via program. our to through of Franchise in coach our Corporate success the also

$X.X coaching helped million XX% $X.X agents reported to was in versus This adjusted As commissions contingent gains, growth If agents, higher mentioned, and opportunities paths coaching Adjusted career having productivity being but Corporate ago retention compared with under only participants. highly million of in margin leveraged for our for productivity Mark revenue, year driven quarter prior quarter EBITDA the attractive an core EBITDA being management. by XXX, and ASC to the improvement. million, was the year. increase more successful strong $X.X both our additional franchisees a a XX% Franchise and leading from area our of Corporate for franchisees virtually investment, impacts increase among is drive the not

the basis. on has short-term to that we term, gradual and business leverage manage As quarterly to on the growth. for see should investments We focus do but improvement have maximizing moderating impact margin term, a are over a longer continue reminder, on growth over operating long will the our profits and not margin make we future continuing natural business near-term

the the and outlook full XXXX accounting growth Total in organic of $XXX ASC to the with and and to the we on range end $X be August million, June between June, under XX, premiums written balance term of revenues unused XXXX high XX% the note payable million to had the an revenue line as XXXX, our billion and and $XX.X the the drew total of the of range. and XX% $XX.X the the its representing of and growth of on the end million. of are half will business June XX% of outstanding cash million of Based $XX.X payable, bringing of organic balance our loan In XXX on close of on the to or holders representing for revenue. Directors are share, $X.XX cash written approved between equivalents the confidence XX% for range range. which billion, million XX, platform, low As on the million company of totaled of million down of $X.XX high record of premiums end special a expected remaining on business Board $XX.X year of placed XXXX. our XX, and first end of year cash low the XXXX, $XXX be our per of dividend raising credit as company term paid August expected to Today, the are be $XX all respect Total strength on on XX, now results XXXX through XXXX.

results can opposed that estimate our reminder, remains overly easily As will as believe estimate most an companies, achieved. actual be deliver, unlike an a to we of we guidance conservative

trends current economic growth, are positioned believe remain we We we well to and of times business, and the in even uncertainty. deliver our during consistent pleased sizable with

Q&A. have we if now for the would may We listening, will open and I monitor will closely that, for and the continue lines up Operator? update COVID thank any everyone like on business, we With to our situation and impacts provide it to an will necessary.

Operator

line Thank open. Mark you. is from Dwelle question Dwelle, your Instructions] Capital [Operator Mark Markets. is Our RBC first with

Mark Dwelle

when constrained Yes, first on I’m that other the a of these. of never was a you policies and that in I the considerations. in good surprised recession factor the anything just I business had, by second was first. changing behavior that seeing Maybe, quarter get terms cancellation of Obviously, question. customer policies first go had kind I’m condition one quarter? in might afternoon. to really really or question general Are have

Michael Colby

in Mark, consumer this we Mike No, is Colby. haven’t notable. that’s any change seen behavior

that and who relief all in national premium helping the helping that think some a keep the force to need are doing big are policies really I rebate with carriers, those carriers, of lot of of customers it. the – and providing type rebates

in we seen the change haven’t So behavior.

I as which see of honestly did per really think quarter, at look June for May and us the early lead decline, rebounded our housing the in flow part agent. we we some activity

it’s also group. the we’ve So think worth – and reminding I

Our kind share U.S., market involvement in – is home also in terms of so but new small the in premiums in of total sales. as our

see a in housing in we data. activity, decline you do have a where situation dramatic and the So sudden

have where the can part the momentum we our saw to of that’s back on backfilling into to activating new place tools the We the the which good lead half flow, really new relationships, quarter, refocus early taking in quarter. what led of and that into the definitely quarter efforts and we

Mark Dwelle

That’s helpful.

questions of just one related to in actually You the housing anticipated my general. market other

– to at length, over discussed technology you Turning some initiatives. the the some of

anything accelerate there in any is – you that or program business near charge absorb that growth just IT over term? or the as of ordinary you’ll the the within contemplated – the there, uptick is that Just expense

Mark Colby

won’t like big it our our and Yes, there fast spend... in it’s technology opposed be a but an function increase revenue is step in uptick expense, as how to total growing,

Mark Jones

It’s it? isn’t proportional,

Mark Colby

and through programmers big that making we’ve to a either make the to we’re that technology or and revenue internal hiring we’re towards Proportional started these push developers investments, consultants hiring.

we them, P&L run through in both most cases, of our So immediately.

continue normal huge kind course up continue business investments of our us and step these of to I don’t to each expect of year. any for again, increase. function It’s spend So kind

Mark Jones

sorry, some us up created really a that’s the for environment yes, environment pick some has The – talent. Mark, to opportunities created high-quality

position So offense to we’re and as arose. they play be opportunities a to of advantage take in those fortunate

Mark Dwelle

makes were related particular in and travel context, Definitely work in guess with the the environment I associated expense or of there entertainment just sense. the then similar things to the change a reduced other savings in And any quarter quarter? somewhat course perhaps the over

Mark Colby

We some quarter, we of and travel have Franchise quarter. of where right, during sales we from more was definitely team No saw kind where meeting reallocation mileage agents. spend expenses any during our no the visiting from out didn’t All going shops. our with to flights done employees the potential going virtually that

that taking rather repurposed However, cross-selling just for and to of incentives we accepting things. our those and service to sorts that increase and generation certain team referral than it,

it wanted we definitely we saw reinvest to useful, So and would be some thought that we where results. good

Michael Colby

and the to important throughout around we engaged, months where the doing we’re really people things that virtually, that the Primarily very incentives spend. quarter, Yes. to working it’s engaged Mark, that keep keep that’s weeks, of people repurposed

Mark Dwelle

sense. appreciate I’ll the Makes the answers. I queue. Thanks. re-join

Operator

from Shields open open. KBW. your Shields, [Operator now. your moment, Shields, Instructions] Meyer question is with next line is The line One please.Meyer is Meyer

Meyer Shields

you hear Can Hi. me?

Mark Jones

How doing? you Meyer. Yes. are Hey,

Meyer Shields

well. Good are you? How

Mark Jones

Very well.

Meyer Shields

recruitment? Is of the in The numbers stepped quick compensation line and growth other couple equity or function picture of quarter. of the question any bigger items a a in terms Two up then base of that issues.

Mark Colby

going kind think team. there award our some IPO reevaluate. idea Director we something awarded to we at those of year. stock the And about Managing be options, every to is options that It’s years every stock we that two you the when How it’s no. No, not

options want vesting to the those We people to to went think type to driving. we here, our the of reason mean, keep them for tool. folks. the schedules opportunities I we keep the out those new to great time motivated award As extend of public it’s is a whole them keep vest, start to it’s

Director what And re-up our the so that’s of for team. kind stock Managing It’s just of options was. a it

Meyer Shields

Okay.

same back for go the levels to two we So the next should quarters?

Mark Colby

No, more. this no. at we in some for will be perpetuity level – It until award

Meyer Shields

Okay.

right? So this is quarterly, the [indiscernible]

Mark Jones

We the right. Black-Scholes quarterly. expense over take valuation, expense the quarterly period, vesting We

Meyer Shields

Got it.

to Also Contingent was But know That a tough at that as should Okay. current or be here? quarter of helpful. could predict. proceeding Commission. we function that look profitability I

Mark Colby

Yes.

in the think a I past a this you So we quarter. asked to would we’ve book And have talked Commissions from ago, months lot Contingent expected about of perspective wouldn’t have me how quarterly Commissions. Contingent if of three

data Commissions. very the on from in been those loss we that Commissions driven ratio conservative getting still has felt something on However, so we’ve carriers QX been being very booking that the and Contingent comfortable are the positive Contingent

of ratios looking very we’re And so expect yes, XXX, QX, But aren’t of I lot really loss say, in ton Contingent due wouldn’t are to. to normal good. think year, a a obligated I auto I would in it but is any Commissions People COVID. our driving,

some expect as continue Contingent throughout anything we QX. And some updated positive guys Commissions book But we’ll year. keep results the if And decided now we to in changes. so you

Meyer Shields

come into little Okay. dig to from bit that Fantastic. want And recruiting a I then of other agents industries.

from What to is the this you performance their How – question. trying of I’m way legacy are of different side? them? learning from to the terms think In ask right agent

Michael Colby

Yes. is Meyer, this Mike.

set different components of the challenges when that’s insurance recruiting industry. think But a the with you’re fundamentals, candidly, presented easy the part. from You’re teaching outside I the

unwind. – apt these having of come the getting a slower way lot don’t and process into you’ve a and folks if burned our slower they’re adopting the bad is really habits more done So more fully coachable. a see Whereas, you’re the decade, it’s they we that if a need tools to kind have really you’re And lot the these be the working really and change embrace available. to business they habits, in industry think bad really I a in is outside to of its in make out opportunity for to totality that system what of that recruits system I the

So the of that really talent pool a opportunity broaden well for us. very as And it as our just traditional we encouraging look outside does at agents.

Meyer Shields

any or But of there basis any is I that read you don’t growth seeing – and available? on a individual don’t terms month-to-month I On a on in are regions have people economic are like basis, a month-to-month shutdowns. great know – Okay. difference

Michael Colby

far I’m regions? as as sorry, recruiting the candidates in different

Meyer Shields

Yes.

Michael Colby

to No. across of mean, the I a recruiters where recruiter focused. not seeing one the be disadvantaged be would any are be – region recruiting one in region. really a pool we’re would I in healthy country. mean, our And region, another compared any growth seeing we’re recruiter function a

Meyer Shields

and great helpful results. Okay, fantastic. Very

Michael Colby

Thank you.

Operator

the Mark This closing concludes to conference Jones today’s to question-and-answer over back session. for remarks. now turn like any I’d

Mark Jones

to like everybody for have good I thank the just us. Thanks. rest you hope participating with day. of We’d Good day. rest And

Operator

concludes This day. participating, and call. pleasant a Thank you conference today’s have for

Goosehead Insurance (GSHD) 31 Jul 202020 Q2 Earnings call transcript