Good morning, and welcome to Conn's 2022 Investor Day event. I'm Melissa Allen, Conn's Vice President and Treasurer. Here with me today are Chandra Holt, President and Chief Executive Officer, Rodney Lastinger, President of Retail, TJ Fenton, Chief Credit Officer, George Bchara, Executive Vice President and Chief Financial Officer, and Norm Miller, Executive Chairman. Before we begin today, I'd like to take a moment to review our notice regarding forward-looking statements. This information is also included in our press release and in our presentation, both of which are available on Conn's investor relations website. During today's events, we will be making comments that are forward-looking, including expectations for fiscal years 2022 through 2025. Actual results may differ materially from those expressed or implied as a result of various risks, uncertainties, and other financially important factors, including those discussed in our risk factors, MD&A, and other sections of our annual report form 10-K on our SEC filings. Additionally, we'll be discussing certain non-GAAP financial measures. A reconciliation between GAAP and non-GAAP measures is included in the presentation appendix. Following our prepared remarks, we will host a Q&A session. Thank you for your participation in today's event. Now let me introduce you to Chandra Holt. Hello, everyone, and thank you for joining us for our 2022 Investor Day. While I wish we could be together in person, I want to welcome you to our first Investor Day since I joined the company as CEO and President last August. Since many of you are hearing from me for the first time, I want to share a bit about myself and the path that led me to Conn's. I've had the opportunity to spend the last 20 years of my career in retail, holding leadership roles in brick-and-mortar merchandising at Target, Walgreens, and Sam's Club before deciding to transition to the digital side of retail as COO of samsclub.com, and most recently, leading Walmart's multi-billion dollar U.S. e-commerce business. I joined Conn's because of the incredible opportunity I saw to leverage my experience across both brick-and-mortar and digital retail to drive the company's next phase of growth and long-term success. When I looked at the Conn's opportunity, I was initially impressed by the unique retail and credit value proposition and the strong balance sheet. I was also surprised and excited when I learned that all in-stock merchandise can receive next-day white glove delivery. This fulfillment capability is a unique and important competitive advantage within digital retail, and I believe our established infrastructure can be the foundation for a much larger e-commerce business. After nearly six months at Conn's, I am even more excited about the opportunity ahead. Despite the ongoing pandemic and the industry-wide supply chain disruptions, we are on track to deliver revenue growth and record earnings for our current fiscal year. These achievements have continued to build on the foundation for a new era at Conn's, and I am excited to share our refocused strategic growth plan and the opportunities we see to create significant value for our shareholders. I'd like to start today with an overview of the Conn's business. Conn's is a specialty retailer of home goods. We offer a large assortment of competitively priced brand-name home products with nearly 160 retail locations across 15 states. Our credit business also offers unmatched financing options across the credit spectrum. Our differentiated business model combines a strong retail organization with a best-in-class credit offering. This hybrid model is extremely difficult to replicate and allows us to offer a value proposition to our customers that is unlike any national, regional, or e-commerce retailer that I have seen. Our current customer base is largely made up of credit-constrained consumers that lack affordable financing options. Our retail and credit business model creates a strong value proposition by providing financial access for our core customers to purchase products for their home that they may not be able to purchase elsewhere. We also have a growing segment of customers that are choosing Conn's because of our fast and reliable shopping experience. This customer segment makes up a large part of the external market and represents a significant growth opportunity for us. The growth we have experienced over the last 12 months reflects the strong value proposition we provide customers across the entire credit spectrum. In fact, we generated nearly $1.6 billion of consolidated revenue and produced earnings of $4.19 per diluted share in the last twelve months. Our retail business contributed approximately 82% of our total revenue, and our credit business made up the remaining 18%, which is derived from the finance charges and other revenues generated from our $1.1 billion customer receivable portfolio. Within our retail business, we focus on large, durable, brand-name products for the home. Today, our core categories include appliances, furniture and mattresses, consumer electronics, and computers. Many of the products we sell create a logistical challenge for our comparable retailers due to their large cube and need for installation. Conn's fulfillment and logistics capabilities were one of the main reasons I was attracted to Conn's, and I believe our existing back-end infrastructure is a key component of our market differentiation that can support a much larger e-commerce business as we grow. Supporting our retail business is our credit segment, which offers customers best-in-class payment options. Just over 50% of our retail sales are financed through our in-house credit offering. Over the years, we've also added lease-to-own and private label credit card partners to round out our best-in-class payment offering. I think it's important to say a little bit about our history before we look at what's ahead. Conn's was founded in 1890 as a plumbing and heating company based in Beaumont, Texas, under the name Eastham Plumbing and Heating Company. In the 1930s, the company expanded to offer home appliances like refrigerators and gas ranges. In the 1960s, the Conn Credit Corporation was created to provide financing options to help our Texas customers finance essential home-related products during the boom and bust cycles of the oil and gas industry. In 2008, our expansion began to grow, and we grew our geographic presence across the South. In 2016, the company began investing in its infrastructure to successfully manage a period of hypergrowth and expansion. We enhanced our credit operation and developed new processes and systems while building a motivated and experienced senior leadership team to support the transition to a larger regional player. Today, we are a leading retailer and have become one of the largest appliance retailers in the country and one of the fastest-growing e-commerce companies in the categories that we sell. This year will mark the next phase of growth and transformation as we continue to modernize our approach in order to unlock the enormous potential of our differentiated value proposition. Now, let's take a look at our customer segments next. Our current business model is centered around a core customer in need of affordable finance access to purchase the products we sell. Our sophisticated credit business and best-in-class payment offerings differentiate us in the marketplace and attract these customers. To best serve and retain these core financial access customers, we've also built out two key capabilities, white glove next day delivery and an in-house product repair service. These two capabilities are industry-leading, difficult to replicate, and provide opportunities for future growth. These unique capabilities were initially created to protect our investment on the credit side of our business as it became clear that both purchase conversion and customer payment improved with fast delivery and quick, reliable in-house repair. White glove next day delivery maximizes conversion for high ticket credit purchases, while high quality in-home product repair protects payments for products purchased through the life of the loan. As I mentioned, we historically have focused on our core financial access customers. However, as the retail landscape has evolved and customers' preferences have changed, our established capabilities have allowed us to attract a second customer segment into our business. Our white glove next day delivery and market-leading in-house product repair service appeal to customers who value fast and reliable experience. They want the items they are shopping for to be in stock and be delivered to their homes quickly. They also want any issues with their purchase to be resolved quickly and correctly, which requires a local presence. Today, we believe our business is approximately 62% of our core financial access customers and 38% fast and reliable experience customers. Over the past year, sales for our fast and reliable experience customer segment have grown by approximately 21%, which is over twice as fast as the core financial access segment. Our plan is to continue to serve and focus on our core customers with our retail and credit offering while building out and improving capabilities that strengthen our value proposition for both segments. Two capabilities that we plan to improve are pricing and assortment. We are working towards providing a wider assortment of products and wider range of pricing options across categories. We believe that improvements in these two areas will not only help us attract more of our fast and reliable customer segment, but it will also strengthen our value proposition to our existing core financial access customers. Across both customer segments, we are reimagining what it means to do business with Conn's. We are working on our digital capabilities to help facilitate e-commerce transactions, unified commerce to help streamline interactions with Conn's across all channels and customer touch points, and rebranding the business to align our brand with a broader value proposition. I will get into more detail on our digital, unified commerce, and brand reinventions later this morning. I believe great companies are guided by purpose and culture that are aligned with our customers. As I mentioned, historically, we have relied on financial access as our core value proposition. While we believe financial access is still an incredibly important part of our value proposition, it needs to sit within a broader customer-centric framework that is focusing on meeting all our customers' needs, not just their financial needs. As we look towards the future and continue to make investments for growth, we will be guided by our new vision and mission. Our new vision is that everyone deserves a home they love. That vision is enabled by our mission to elevate home life to home love. To accomplish this, we will focus on three strategic priorities. First, we will strengthen our core retail experience. Second, we will continue to enhance our credit business. Third, we will accelerate e-commerce growth. Rodney Lastinger, our President of Retail, TJ Fenton, our Chief Credit Officer, and I will share more about each of these key pillars in a few moments. Executing against these three priorities will allow us to deepen our value proposition with our existing core customers, as well as our growing fast and reliable customer segment. By delivering on these strategic priorities, we can substantially grow our business within the next three years and beyond. We believe we can become a $2-$2.2 billion revenue company producing high single-digit EBIT margins. We also believe we can evolve our value proposition and better deliver on ESG expectations of modern-day corporations. I am personally very passionate about diversity in the workplace, and I am happy to report that the Conn's senior leadership team has grown from 20% diverse a year ago to 50% diverse today. Our priorities over the next three years are ambitious yet achievable. They are supported by the team we have in place and the strategies we are putting into place. I look forward to checking in with all of you and sharing our progress as we continue this journey. Now, I'm going to turn it over to Rodney to share more about our retail plans. Thanks, Chandra. Hello, I'm Rodney Lastinger, the President of Retail at Conn's HomePlus. Before I get started, I want to take a moment to share my background. Prior to joining Conn's in 2019, I spent 18 years at Target Corporation with my most recent position as SVP of stores for their southern region, which was comprised of 565 stores and delivered over $21 billion in sales. Since joining Conn's in June 2019, my focus has been on strengthening the core business, primarily on fundamentals in retail and empowering our teams to focus on creating continual value for our customers. As we have seen over the last year, those teams have delivered some amazing results, and I'm thrilled to lead our retail operations during this exciting period of growth as we expand our brick-and-mortar presence and focus on growing our e-commerce operations. I want to begin my presentation today by reviewing our compelling value proposition that underpins a strong customer journey. Throughout our history, we have supported our customers and home lifestyles by providing them with high-quality brand products in their homes. Regardless of how our customers choose to shop with Conn's, we want to provide them with the best-in-class retail experience by offering a wider range of products at competitive prices. When a customer comes into one of our retail locations, they get greeted by a highly trained, skilled, commission-based sales associate. Our commission-based sales force is the foundation of our customer journey at Conn's, and we believe this will further expand our market differentiation in the coming years. Our sales associates build a relationship with our customers, assisting them with their purchases and financing needs. Unlike our competition, this relationship doesn't end at the point of sale. It continues through our market-leading next-day white glove delivery and expands through our world-class in-home sales and service teams. Our entire organization focuses on making every aspect of the customer journey successful, which is the way we achieve our mission to elevate home life to home love. Our value proposition begins with the amazing products that we sell to our customers. We are one of the only retailers that offer appliances, furniture, mattress, and consumer electronics under one roof. I believe we are extremely well-positioned to capitalize on the modern-day growing consumer's focus on home life. Currently, the majority of our merchandise falls in the better-best category, and we carry leading brands such as Sony, Samsung, LG, and GE. Over the past year, we've had a steadfast focus on not only refreshing and updating, but also expanding our product categories. We believe we have a huge opportunity to increase sales, attract additional customers, and strengthen our core retail experience by expanding our merchandise assortment in both the competitively good and premium categories. We also feel that as we grow our digital business, the transparency of our online assortment and pricing will make it a necessity and a requirement to grow this assortment. Now, I'm going to give you two examples of how we plan to expand our premium and good categories. First, let's talk about premium. We will continue to be a retailer of choice for our financial access customer. However, our recent financial results demonstrate we believe we have a meaningful opportunity to increase our addressable market and leverage our compelling white glove next day delivery capabilities to make ourselves more attractive to grow our fast and reliable customer segment. Using example of appliances, today, we focus mainly on better best in the category, and over the next year, we will further strengthen our core retail experience by expanding our assortment across categories into premium and special order products. This is a natural extension of our product assortment and deepens our vendor relationships. Today, we already have relationships with GE, LG, and Samsung. Throughout the coming quarters, we will offer premium lines such as GE's Café, LG Studio, and Samsung's Bespoke. Overall, we believe expanding premium segments supports a significant growth opportunity and further expands our customer value proposition. Through more choices, a wider range of prices, and the ability to special order, we can make Conn's an attractive retail solution for a broader base of customers. Now let's talk about good, which includes our private label business. We also have a meaningful opportunity to expand our offerings in the private label brands. Early in 2021, we launched our first private label brand, DreamSpot, in our mattress category. DreamSpot offers customers products at a good price, and we believe we can replicate this private label brand success to other products and categories in coming quarters. DreamSpot continues to exceed our expectations and is our number one selling mattress brand in both units and dollars. In our first year, we believe we can grow sales to over $25 million, which is a direct reflection of the brand's value. We believe we can continue to create market differentiation through our own brand and products, positioning better private label products at a good price. In addition to private label, we will use national brands to continue to expand opportunities to further build out our good offerings across all categories. As you can see, we provide our customers with a compelling assortment of products. However, this is just one component of a retail experience. It's critical to support our customers' journey with engaged sales associates. Our commission-based sales force is uniquely positioned to create a strong frontline experience for our customers. This experience drives our net promoter score well above the industry average. We are proud of our high NPS and the fact that we're able to generate a much more positive customer experience than our competitors. Our associates are highly incentivized to provide an experience based on the individual customer wants and needs. We will improve our in-home sales and service parts by our e-commerce integration next year, and it will align to unified commerce. This will allow associates to service and sell both through digital and brick-and-mortar channels. In addition, our best-in-class payment options support a powerful competitive differentiation, increasing our customers' buying power and capability to make a purchase decision. Now, let's take a look at how we get products to our customer's home through our market-leading delivery capabilities in more detail. We have created a unique and differentiated distribution infrastructure that specializes in delivering large, bulky products that we sell. In fact, nearly all customers' purchases receive next-day delivery, which is white glove delivery, which is unheard of by most other retailers. As a result, we believe our next-day white glove delivery capabilities create a unique value proposition to attract a more fast and reliable customer at Conn's. We believe we have significant opportunity to grow our business since our distribution network can provide next-day delivery to over 70% of the populations in the 15 states that we operate. This includes 97% of the population in our home state of Texas. The next-day delivery differentiation has been and will continue to be a success factor for us as customers decide to buy from us. We love when our customer journey ends with a successful delivery and installation of their products, and we deliver on our mission to elevate home life to home love. Our next-day delivery capability is made possible by our investments in distribution networks, strong inventory positions, supplier relationships, technology, and people. We currently have 11 distribution centers supporting an average of 14 stores. As you can see in this slide, our competitors have far less distribution centers supporting their stores, with DC-to-store ratios ranging from one to 20 all the way to one to 100. As a result, many of our competitors know that keeping a next-day promise is hard to do, and it requires significant investments in fixed cost and inventory, and they are all trying to fix the problem that we've already solved. In addition to our delivery capabilities, we also operate our own in-home service division across our local markets. Many retailers have done away with their in-home service divisions. However, Conn's customers enjoy reassurance and peace of mind knowing that we will service and repair the products that we sell. Just another engagement opportunity for us to connect with our customers along their journey. Our service and NPS has climbed to 70%. I am proud to say that our average repair time is seven days against the industry average of 14 days. With 95% of all service calls being performed in-home by a Conn's associate, we're able to control every aspect of the customer experience by delivering on speed and accuracy during the event. As the world becomes an increasingly digital place, we believe having a local presence within our markets is an important differentiator. This allows us to engage with our customers and support them. In addition, we believe our commission-based sales force empowers our customers to that further differentiates us from our competition. This includes advocating and supporting for our customers if and when they encounter a service problem after their purchase. As we transition into a unified retail model, customer support can come from our call centers and digital channels any time of day. The big difference with this model is that the customer can engage with a sales associate who helped them make a purchase to take care of any of their needs. That's right. If the customer wants to schedule a delivery, schedule service, make a return, or solve a problem with one point of contact, they can. They can go back to the person they trusted to make the purchase from in the first place. We give them that choice. This local, flexible experience is unlike most interactions customers are receiving from other retailers today, especially when companies are trying to become more digital. Since we are hosting today's investor presentation, we decided to put together a brief video that shows our customer journey. As you can see, we have created a powerful retail platform to support the entire life cycle of our customer's journey at Conn's. We believe we have significant opportunity to expand our footprint into new markets and geographies, leveraging our legacy of growth and transformation. Over the past 132 years, we have grown from one store in Beaumont, Texas, to 157 stores across 15 states today. We have a potential customer located in every city, state, and ZIP code across the country. We believe growing our store base provides us with a local presence to consistently deliver on our value proposition to a large, untapped addressable market. In addition, as competitors have stopped expanding and have closed locations, we are continuously looking for opportunities to serve our customer across the country. We believe we can accelerate new store growth because frankly, we've become pretty good at it over time. Over the last 10 years, we've added an average of 9 stores, which equates to about 9% annual growth rate. Over the next five years, we plan to add 15 additional stores. While we have focused on opening approximately 40,000 sq ft locations, last year, we began testing new and smaller format layouts. These smaller prototypes will blend the best of our in-store and digital capabilities and promote our emerging unified retail experience. We believe these similar layouts are highly efficient, requiring less capital to open and produce higher sales per square foot. In addition, they give us flexibility to open locations in more urban and rural markets in the future. As I mentioned earlier, we've become pretty good at opening stores. We have a dedicated new store opening team that is tenured, diverse, and collaborative. In addition, ahead of each store opening, our teams plans out every aspect from marketing to leadership, down to utilities. We leave nothing left to chance. Many things must be done to make a new store successful. However, three components must be executed flawlessly. First, we determine markets with demographics that support our stores and digital offerings. Second, we implement a unique go-to-market plan that allows us to quickly scale our stores by leveraging marketing dollars to create immediate brand awareness. Finally, when we go to market, our sales associate and marketing teams must execute and educate to make sure our customers know our next day delivery, our broad assortment with great prices, and world-class payment options create an undeniable value proposition. Let's talk about the economics of new stores. They're actually quite attractive. The average new store generates approximately $5-$7 million in its first year in sales, annualized. Stores reach maturity quickly within three to four years, producing an average of about $8-$9 million in annual sales. Buildings require about $1 million in net capital and $300,000 in SG&A expense. The initial investment is recovered in one to three years, and stores break even or become profitable at about $4 million in annual sales. This helps us achieve an impressive payback in under three years. Our current footprint aligns well with changing demographics in the U.S. As people are migrating to many states where we operate, looking at net migration from July 2020 to July 2021, we operate in eight of the 10 stores that are experiencing population growth at a rapid rate. In fact, our home state of Texas has experienced the second-highest population growth, and we think with people moving to the states that we operate in, it's gonna create a strong tailwind for us. In closing, I wanna stress that we have developed a compelling, differentiated, high-performing retail model that we believe is extremely scalable. Our best-in-class payment options provide our customers with buying power to purchase high-quality, durable products for their home. In addition, our emerging unified commerce strategy is well-positioned for the future of retail and will support our store and e-commerce operations for years to come. Our unique competitive advantages of white glove next-day delivery and industry-leading service will continue to attract and delight our customers to return. Everyone may say it, but we really mean it here. We have the best team in retail. We are proud of our performance year-to-date, and we're excited about the growth that's to come. Thank you for your time, and I'll now turn the presentation over to TJ to review our credit segment. Thanks, Rodney. Nice job. Good morning. I'm glad to join you this morning. It's fun to get out from behind my keyboard and my calculator and get to talk to all of you for a few minutes about some of the fun things I've been able to accomplish in the last 18 months here at Conn's. I've enjoyed merging my 25-year credit background with the retail environment. Most recently, I came from OneMain, the leading subprime lender in the United States, where I was able to manage portfolio risk, pricing, and revenue management. I'm grateful for the support of our senior leadership team here at Conn's through Norm as the previous CEO and now Chandra as the current CEO, as I've been able to oversee some significant investments in talent, technology, and data. Those investments have allowed us to upgrade the underwriting process, the custom scores we use within our underwriting, as well as the offers that we use and have been able to generate some nice growth over the last year and set the stage for improvements, both the near and long-term. I'm excited to be able to share some of those things with you today. As we do that, I'll kind of focus my remarks in four key areas. The first, I'll give you an overview of our current payment options. Second, we'll walk through our recent in-house credit portfolio trends. Third, we'll talk about some strategic opportunities for the future. Lastly, I wanna leverage and talk about how those opportunities can be enhanced with our digital platform as we help improve credit in the future. Today, we offer four payment types. The first is cash or a customer's own personal credit card. That's currently about 20% of our business, and that is trending well up versus two years ago. Our private label credit card is a financing option that a consumer has, and it's currently 18% of our business, which is essentially flat over the last two years. Third is our in-house financing. That's at 51% today, and that's strategically been lowered from where we were two years ago. Then lastly is our lease-to-own product. The lease-to-own product currently stands at about 9%, but that is trending well up versus two years ago. These four payment options are critical, but especially the three financing options the consumer has, as those that wide spectrum of credit opportunities helps us and is core to our business. If you look at just the in-house portfolio, that gives us a competitive advantage because with our competitive core in-house portfolio, it enables us to take a return that a third-party financier might incorporate into their price and reinvest that into our customer. By reinvesting that with our customer, it helps our customers expand their buying power, and it increases their ability to buy more products from Conn's. If you look at our in-house portfolio and some key stats, those would include a $1.1 billion portfolio balance, roughly a 22% net yield, a 9.6% loss rate, which those two components enable us to target a break-even spread of roughly 1,000 basis points. What's also important when you have an in-house financing portfolio is your compliance. What I'm excited about is our multiple levels of defense associated with our compliance. You can see that our board is involved all the way down to our frontline analysts, and we're all eager to make sure that by being compliant, we really get to take care of our customer, as Chandra mentioned in her opening remarks. If you talk about the portfolio in itself, you'll see over the last 12-24 months that there's been some changes in our portfolio. If you look at our FICO distribution, you will see that it has shifted, and we've shifted that upmarket. We've done that strategically as we've looked to try and improve the credit quality within our program. Looking at the FICO score, you can see that the Q3 FY 2020 score is roughly eight points higher than the Q3 FY 2022 score. That's important, and we like FICO, and it gives a nice overall health or view of the health of our portfolio. However, what we really use is a custom score in order to determine the creditworthiness of our customer. There's a good correlation between FICO and our custom score, but that custom score does a significantly better job of rank ordering risk for our in-house customers. The score, while it's continuous, which you'll see on this slide, is that we've categorized it into four groups: A, B, C, and D, with A being the lowest risk and D being the highest risk. There's two delineations on this page. The first you will see is during the onset of COVID, we began to significantly reduce the D-risk as a percentage of the originations that we were doing. As a result, between Q4 of 2020 and Q4 of 2021, there was a 68% drop in our risk grade D origination volume. This drop did have a negative impact on our sales during that time period, but it enabled us to adjust our underwriting strategy and appropriately account for the worsening credit trends observed due to COVID. During that same time period, about Q1, Q2 of FY 2021, we started looking at how we might be able to increase our better credit quality customers. As a result, we started testing how we could make sure our approval rates were maximized for those better customers, how we could better assign lines, how we could use promotional rates to drive growth amongst that group. You can see that testing results, we started to implement those, and that's the second line on the chart. During that time period of Q3 of FY 2021 to Q3 of FY 2022, you'll see our risk grade A population increased by 109%. You'll also see in those two most recent fiscal quarters that that's driven a significant amount of growth within our in-house credit portfolio. Just as a reference point, so you understand how important that is, a risk grade A customer, the losses are the bad rates double as you go between an A and a B, and it doubles again to a C, and again to a D. As an example, if our year one loss rates for a risk grade A customer is 1.2%, we would expect risk grade B to come in at 2.4%. Further cause for optimism is if you look, the portfolio, about 80% of our current portfolio was originated under those tighter, underwriting standards. As a result, risk grade D has declined by 46% if you compare January 2020 versus October 2021. That's a really nice piece because on the opposite side of that, we've had a 67% improvement of our risk grade A volume during that same time period. Another couple of key metrics that we utilize to understand the health of the portfolio. The first is our 60+ delinquency, and the second is a metric of the percentage of our portfolio that has been through re-age. Just as a reminder, 60+ is the portion of our portfolio that is currently 60+ days delinquent. The re-age is a measure of our portfolio of those individuals and those accounts that have taken advantage of a borrower assistance program that we have that provides a concession to the customer and improves their delinquency. The 60-plus delinquency chart has two spikes. The first spike occurred during COVID, where I was talking about we recognized it and we needed to tighten. The second spike had to do with the fact that we changed our re-age policy. By changing our re-age policy, we limited the amount of times that a customer could be re-aged or take advantage of that borrower assistance program. As a result, it did cause a second bubble in 60-plus, but that was to be expected, and it's improved the overall health of the portfolio. The change in re-age policy has lowered those accounts that have experienced or taken advantage of that program from 31% to 18%, and that's expected to continue to improve throughout FY 2022. This change in underwriting strategy, credit quality, and re-age percentage create a lot of optimism for me as we observe the impacts of stimulus ending and our typical seasonal movements in 60+ over the last few months. Spread. Spread is a measure of the delta between the net yield and the net loss rate. Over the last two months, excuse me, 12 months, you'll see that our spread has improved due to improving losses and improving net yield. I mentioned in the first that we were using 0% and we have had used testing to determine how we could grow our better credit quality. Well, that'll have an impact on spreads in the future, right? As we'll have lower net yields, but the cool side of that is that it will also generate lower net losses through the use of those promotional rates. However, we still expect to receive 1,000 basis points in spread that we have traditionally seen. We'll just get there in a slightly different way. Let's talk about the new stuff and the exciting things that are to come. If you take our portfolio, we like to break it into three segments. Our core segment, which is really where the majority of our revenue comes from, and it's that 550-600 segment. This segment is an important piece to us because it's a key segment where we still think we have opportunities to improve that. Secondarily, there's the 660 segment. Here you'll see we're a little underweight versus the market, and we'll talk about some ideas that we have to help improve that. Lastly is our less than 550 segment. This segment has seen some dramatic and significant gains due to the fact we've implemented a couple of new LTO partners. I still think there's opportunities to improve that, and there's also things that we need to do to make sure to maintain the success that we've seen in the past. In Chandra and Rodney's remarks, they both talked about product assortment, good, better, best, and the ability to special order, right? It's really important, and I'd like to kind of show you how there's interconnects between that and the credit business. As an example, if I come in as a customer and I'm not eligible for our core credit segment, but I'm only eligible for that less than 550, that LTO offer, which typically comes with an average line of $1,500. Well, if I don't have products available that are $1,500, the customer can't buy anything. It's really important that I have a nice product set in the good product categories that utilizes the buying power associated with that segment. Conversely, the greater than 660 segment typically has larger buying power. They have the ability to purchase more. If our product assortment is only tailored to the less than $550 segment and it doesn't carry with it some of the nicer pieces or some of the more expensive lines, that customer leaves unfulfilled, and they may take their spending power elsewhere. It's very important for us to interact between the credit side of the business and what Rodney does from the purchasing side of the business. That adds a lot of power to our program by connecting those two. The core segment, how could we improve the core segment? The first thing is that we need to improve our offer set from a financial perspective, the offers that we give a customer. As an example, today, we rely primarily on a 0% offer or a non-risk-based priced offer. Giving customers access to credit with more of a promotional set, i.e., a fixed rate offer, or being able to extend their terms for a better quality customer will definitely help us satisfy that payment-sensitive customer need and help them utilize all of their buying power. Second, you know, we've upgraded our data and our analytic tools pretty dramatically. When I first got here, we had access to hundreds of attributes from a credit perspective over a handful of months of history. Today, it's fun because we have thousands of attributes over years of history. As a data person or as an analytic person, that means a lot to me and my team 'cause we're able to use that to develop out new scores, new models that help us improve what we can do as a company. The third one is something that has been historically valuable, but I think it becomes even more valuable in the future as Chandra talks to you about e-commerce, and that is our fraud tool set. We've been able to upgrade and implement multiple new fraud models as well as some new fraud tools that makes us more accurate in identifying a customer and making sure that we don't have losses due to fraud. Lastly, our ability to to utilize that new data and turn it into systems and tools. I was excited about the team that I had when we arrived here, but we've also made investments and expanded that team, expanded the skill sets. Those skills, empowered by the new tools and data that we've brought in, will make it really exciting, right? Just as an example, one of the significant upgrades that we began developing when I got here was a new custom score. I'm proud to say that today we utilize that new machine learning, custom score that utilizes hundreds of attributes, as well as both traditional bureau and alternative data. Statistically, that score is roughly 40%-50% more effective at determining future defaults than FICO, and it's 25%-30% more effective than our previous custom score. All of that makes me really excited about the team that we have here at Conn's, as well as the tools that we have as we continue to develop in the future. Our next segment is the 660+ customer. In this segment, we partner with a private label credit card, and the private label credit card makes up about 67% of the revenue in this segment. Here, more than any other segment, improving the offer strategy is really critical. This customer is not only looking for a wide assortment of products, but they're also looking for the best financing deals possible. In order to strengthen this segment, we believe there's two key things that we need to do. The first one is strengthen that relationship with our private label credit card company. They have the ability to deliver a purchasing product line and promotional rate that is attractive to this segment. Second is improving our ability to identifying this group and serve them with offers that are attractive and competitive within the marketplace. If you look at what's going on in the competitive marketplace and what's going on with our customer base, what you're gonna see is customers below 660 are different than those that are above 660. If you take Conn's in-house market or in-house financing, it's really market leading below 620, competitive from 620 to 660, but we're less than competitive above 660 from an APR standpoint. This demonstrates that as credit quality improves, APR becomes increasingly important to our customer segments. The development of our credit offer engine will enable us, and our in-house financing to be risk-based priced, meaning that our APR will differ based on credit quality, and it enables us to become more competitive in that 660+ segment. It'll also enable us to introduce new promotional offers, like I'd mentioned, around fixed rates, which can also provide attractive financing for our core business segment, and help Conn's improve its yield. The less than 550 segment. I mentioned that we had two new LTOs and that we had strategically lowered the percentage of our business coming from the in-house portfolio. As we tightened our credit, that enabled us to then have customers that the in-house product wouldn't work for. However, with the LTOs, that's why, if you'll notice, they currently account for 70% of the segment, but that wasn't true in the past. The development of those new partners is a very critical component, as we go forward because of our credit tightening and the way we've shifted business in that lower credit scoring customer. Keys to the future in this segment include improving the application rate for the customers that don't apply for the in-house financing and helping them understand the opportunity they have with our lease-to-own program and getting a higher percentage of those customers to apply for the lease-to-own program. If we can lower our fraud rates in that segment, it helps improve the loss performance for our LTO partners, which enables them to have a better approval rate. That's another key. You know, a good example of how we could also go at improving the loss performance associated with those customers is a recent work that we did with one of those LTO partners, where we went through and we tried to understand what products people that were more likely to go bad were purchasing, more importantly, what combination of products. As we did that, we identified areas that we could eliminate by, on the con side, creating policies that disallowed or made those products or that combination of products ineligible for purchase. By doing that, it specifically helped improve the performance of the LTO loss rates. Additionally, we've been working with them to develop their own custom scores, just like Conn's in-house has, but to develop custom scores for our LTO programs. Lastly, it's something that's not super sexy, actually. It's just digging in and being diligent about that less than 560 segment. We have to be disciplined and live within the details. While that's not fancy, that ongoing effort and continued focus will help us to continue to develop out and to manage it, appropriately manage the segment. That's a key to being successful with that customer. Lastly, I wanna talk about how we can interact with our digital business, right? About two-thirds of our applications originate on the web. Those two-thirds are important to us, and so we have to be better and do a good job with them, those customers. What we did here is I broke it into three key areas of focus. The first is digital ID verification. If you go back historically, all of our applications that were poor credit risk were manually verified. That manual verification created slowness in our process because it had to be reviewed for credit, then sent to a manual unit, approved, and then sent back to the store. By doing a digital ID verification, we're able to automatically confirm the identity for not only the poor credit, but all of our customers, which improves my fraud. Secondarily, we can use that information that we verified to pre-populate the application, making it even easier for our customers to apply. Second, by creating a singular pre-qualification application, it enables us to check all of the products that a customer is eligible for, not just the in-house program or the private label credit card. That's important because if you remember, I was mentioning that we don't get all of those customers that are declined to apply for the LTO. By creating a singular application that's pre-qualified, we don't impact the customer's credit, but what we do do is, through a single pull, tell the customer everything that they're eligible for. This enables them to understand their buying power, their buying options, and as they go through the purchase journey with Rodney's team or online, they're able to see exactly what they can do with one pre-qualification. This one we're excited about. We've created the wireframes, we've done some user acceptance testing, and we're currently in the process of building that. The third group is evaluating the offers associated with our payment options. I previously mentioned the efforts surrounding the credit offer engine. Online, it will be critical to develop a user experience that is clear and concise. When we give more offers, the customer has to understand those offers. They have to be able to understand how they can utilize them, understand the pros and the negatives associated with them such that they can make their best decision. A great example of that is when we were doing our testing that I'd mentioned previously about using promotional rates. Our best credit quality, that A risk grade customer, the test results identified the fact that if we gave them that 0% offer versus if we didn't, we were able to increase sales roughly 35%. More importantly, for me, I was able to decrease the losses by almost 40% associated with those A risk grade customers. While it's cliché, this emphasizes to me the importance of the old adage, the right customer needs the right offer. While my time at Conn's has been short, I'm excited about what both the credit team and Conn's have accomplished together. I look forward to the future success that I believe we will have as we continue to develop the initiatives that I've been discussing. At this point, I'd like to turn it over to Chandra, and she'll continue the conversation regarding e-commerce. Chandra? Thanks, TJ. Our credit segment is a critical part of our business, and you and your team are an important part of our success. Our third strategic priority is accelerating our e-commerce growth and digital experience. Transforming digital commerce is a passion of mine and one of the reasons why I came to Conn's. When I was doing my due diligence at Conn's, I had the opportunity to tour a distribution center with Norm Miller, who was the sitting CEO at the time. I immediately realized that Conn's had the making of a leading e-commerce business, but hadn't yet realized the assets already established. While we are still in the early innings of our digital transformation, we are making fast progress and have exciting plans in place to rapidly expand our e-commerce business. Today, I'll talk about where we are today in e-commerce, where we can go, and how we can get there. Our current e-commerce business has generated $58 million of sales over the last 12 months and is on track to generate $70 million this fiscal year, which is up significantly from the $26 million last fiscal year and only $3 million just three years ago. This growth is the result of our initial investment in modernizing our digital experience, and we still have significant opportunity ahead of us. To understand our growth opportunity, we've looked at e-commerce penetration rates for our categories in the broader retail market to better understand what our potential is. Within appliances, our e-commerce penetration is around 6%, with the market at 34%. Within furniture, our penetration is closer to 3% with a market penetration of 38%. Our electronics penetration is 4% with a broader market rate over 50%. We believe we can close the gap from our current penetration to align closer to the penetration rates of our markets, which creates an opportunity for us to grow annual e-commerce sales to over $300 million by fiscal 2025. If we were fully penetrated, we believe the market opportunity is over $500 million. As we think about achieving our full potential, we've broken down the core components of our e-commerce revenue into traffic, conversion, and order value. Our current website traffic is strong and growing with over 25 million visitors currently shopping our website each year. On the other end of the equation, average order value is also strong at $930, reflecting our high-ticket assortment, but also has upside as we develop digital capabilities to increase units per transaction. Our biggest opportunity is our conversion rate. Conversion rates have improved over time. However, at 22 basis points are still well below industry norms. We believe we can grow conversion to 150 basis points, which will be the main driver of achieving $300 million in e-commerce revenue. In order to grow our conversion rate, we will focus on three main areas. First, our product value proposition. Second, our distribution capabilities. Third, our digital experience. First, we're working to maximize our product value proposition by broadening our range of assortment and pricing, as Rodney talked about earlier. We believe this will drive 50% of our conversion improvement. An example of this is special order appliances. Today, we offer the standard-depth Samsung side-by-side Family Hub refrigerator in stainless steel and black stainless steel. As we add special order items to our online assortment, we will be able to add counter-depth option for the refrigerator in both colors as well. Another example is the GFW850 series front-load washer and dryer we carry in sapphire blue. It's the set that I have at my house, and it's fantastic. When we add special order items, we can add additional colors such as white for this particular washer and dryer set. Second, we're ensuring our best-in-class distribution is better conveyed to our customers. We believe this is 25% of our conversion opportunity. Currently, there is low awareness about our next-day delivery capability, and we will do a better job marketing and showcasing this capability to our customers. We will also improve our distribution capability by removing friction from the customer journey. An example of this is providing the customer the opportunity to schedule delivery in the checkout page of their digital transaction instead of having Conn's call them to schedule delivery after their online transaction is complete. Third, we're continuing to build out a better digital experience, which we think is the remaining quarter of our conversion opportunity. We will improve everything from search and browse functionality to the content of our category and item pages, to our checkout experience, to the simplification of our credit application process that TJ described, to how we use digital marketing to drive higher quality traffic. Some specific examples of improvements we are making include faster and more personalized homepage and browse journeys, improving our search engine and personalization with AI, utilizing augmented reality and 3D to help customers virtually understand how a product fits in his or her home, and providing faster checkout options by adding additional mobile payments and digital wallets. We also recently attracted a new chief technology officer and are in the process of building out product and engineering teams that will be critical to delivering our desired digital experience. We also have an opportunity to improve the overall customer experience, both in-store and online, with unified commerce. Unified commerce is what I see as the next evolution of digital retail. If you go back 15 years and look at the evolution of brick-and-mortar retailers into e-commerce, retailers started with a multi-channel model. They had lots of brick-and-mortar stores, and they added on a website with their brand name. To support the commerce done on the website, they built out separate operating systems and supply chains and often people organizations. As a customer, you likely experience different assortments, different pricing and promotions, and you may not have been able to return an item you purchased online in a store. Seeing the customer experience gaps with multi-channel retailing, retailers have evolved into an omni-channel model where there are still different systems and supply chains, but the systems started talking to each other and people organizations started to merge as well. Assortment started to overlap more, pricing and promotions started to match more often, and you can now return items purchased online into a store. Unified commerce is when a retailer operates both the store and the e-commerce business on the same platform and the customer experience is seamless. I believe we can jump from a largely multi-channel retailer to a unified commerce retailer and leapfrog many of our retail competitors. You may be wondering what the difference is from a customer's perspective between omni-channel and unified commerce. Let me give you an example. Let's say you are shopping in a store for groceries and you realize the scent of laundry detergent you want is out of stock in-store, but in stock online. As you are checking out, you ask the cashier to add the detergent to your order. The cashier would probably give you a funny look and then tell you to go on the website or the app and order it online. At Conn's, our vision is to have unified commerce. If you are shopping in the store for a sofa and you see lamps online that are not in the store, our sales associates will gladly add those lamps to your order. Why is Conn's able to make this leap? Conn's is uniquely positioned to deliver on unified commerce because our back-end supply chain is the same for both stores and e-commerce, and the front-end POS interface is already digital. Through unified commerce, our digital strategy will enhance our entire business model with improvements both online and in-store. Our in-store sales associates will have additional digital tools to support customer product selection, expanded assortment options, and streamline the checkout process. As a recap, we've shared our priorities for continuing to strengthen our core retail experience. We've discussed the opportunities to continue to enhance our credit business and to accelerate our e-commerce growth in the near future. We are very excited about the opportunities ahead of us, and we are confident this strategy will unlock more value to more customers in the years ahead. Over the past few months, as our enhanced strategy came together, we reflected a lot as a team on where we've been, where we are today, and where we're going. We also spent time researching whether the Conn's brand would allow us to connect with our growing customer base in a way that conveys where we are headed as we become a more modern, nimble, and accessible brand with a broader customer appeal. Ultimately, at this inflection point in our company's history, we decided that introducing a new brand identity would be a strategic accelerator to support our growth and enable our transformation. Rebranding will better position us to bring to life our new value proposition, helping our customers create a home they love by bringing them the best products at the best prices faster than anyone else with affordable payment options. I am truly excited to share that this work is already underway, and I look forward to being able to share more with you in the year ahead. To summarize, by delivering on our three strategic priorities and aligning our brand to the opportunities ahead of us, we are setting our sights on becoming a $2 billion-plus retailer, delivering strong profitability. Throughout our rich history, we've always been focused on helping our customers create a home they love. The new vision for our future and the strategy we presented today to get us there is going to allow us to build on our strong foundation to create a modern, nimble, customer-centric company with a much broader value proposition. By leveraging and building on our unique strengths, we have the opportunity to unlock unprecedented growth and a very bright future. Now, I'm excited to hand it over to George Bchara to share our financials. Thank you, Chandra, and good morning, everyone. I'm George Bchara, Conn's Chief Financial Officer, and I've been at Conn's for just over five years, following several years at a large regional bank, and before that, PwC. As you've heard throughout today's presentation, we believe we have developed a compelling strategic growth plan that leverages our assets and capabilities to drive sustainable growth and profitability for years to come. As we look forward, we also believe we will benefit from several macro tailwinds, including a strong housing market, a systemic shift in how people view their homes, and a footprint in markets that are experiencing the highest levels of population migration. Our three-year strategy reflects a more balanced value proposition, relying more heavily on cash and third-party finance sales than prior periods of growth. It is also underpinned by our sophisticated credit platform and reflects our decision to target a higher credit quality consumer. As a result, we believe that our in-house credit offering will remain between 50% and 60% of total retail sales going forward, compared to approximately 70% prior to the pandemic, which allows us to grow while taking less on-balance sheet risk. We believe we are well positioned for controlled revenue and profitability growth, which we expect will reduce the volatility of our business and drive shareholder returns. With this perspective in mind, I wanna start my presentation by looking at our retail's recent success and how our strong financial position supports our three-year growth plan. Since fiscal year 2020, retail sales have increased at a 5% compound annual growth rate, driven by a combination of same-store sales and new store growth. In addition, on a two-year basis, same-store sales are up almost 10% year-to-date. We've generated this growth while improving credit quality, increasing our addressable market, and relying less on our in-house financing program. This successful shift has resulted in a $191 million increase in cash and higher credit quality customers, which we tend to refer to as our fast and reliable customer segment, as our retail value proposition of high quality name brand products, white glove next day delivery, and in-house service resonates with customers who don't rely on our in-house financing. At the same time, while customers that need our in-house financing remain the cornerstone of our business, we have reduced our on-balance sheet exposure by decreasing loan originations by $141 million as we have shifted towards a higher credit quality customer, even within our in-house financing program. We are encouraged by the continued growth we are seeing across our payment types, even as we lap the significant growth we experienced last year in cash, credit card, and third-party finance sales. Year-to-date, cash, credit card, and third-party finance sales have increased approximately 30% year-over-year after increasing over 30% the previous year. We believe this continued strength indicates that our value proposition is successfully resonating with customers across a larger addressable market than before the pandemic. The strategic shift in how our retail sales are financed has impacted several aspects of our financial results. On the retail side of the business, it has resulted in lower retail gross margins. Conn's in-house finance sales have a higher attachment rate of highly profitable repair service agreements. As we finance less of our sales with our in-house offering, sales of repair service agreements have declined by approximately 20% since fiscal year 2020. In addition, we have modified our assortment to offer a wider range of price points appealing to a broader spectrum of customers. For example, as TJ mentioned, LTO customers often receive lower approval amounts than customers who are approved for our in-house financing, and we have leaned into this customer segment by assorting more products with a price point that fits within a typical LTO approval. The in-house RSA decline and assortment changes make up approximately 80% of the decline in retail gross margin and are a direct impact of our strategic decision to rely less heavily on our in-house financing. Finally, the industry-wide supply chain challenges and higher international freight costs that we've talked about over the last several quarters have also contributed to the reduction in retail gross margin. However, the lower retail gross margin was coupled with higher credit segment income driven by a smaller, higher credit quality loan portfolio. Credit segment operating income has increased by $83 million since fiscal year 2020, and we have produced six consecutive quarters of positive credit segment operating income. This was driven by a decline in our provision for bad debts as a result of a smaller portfolio balance consisting of higher quality, better performing receivables. I would also note that part of this improvement was driven by a reduction in the allowance for bad debts as a result of a declining loan portfolio. As the portfolio begins to grow, we will see this benefit reversed in the future. As you can see, we are pursuing a larger addressable market, and this shift has resulted in lower retail gross margin, a smaller, higher credit quality loan portfolio, and more sales opportunities. I'm encouraged that we have been able to grow revenue and improve overall profitability, demonstrating the strength of our scalable financial model. Importantly, strong top line growth and favorable portfolio performance has driven a significant expansion in profitability. Earnings have increased over 130% from $1.82 per diluted share in fiscal year 2020 to $4.19 per diluted share for the last 12 months. As you look at our earnings over the last 12 months, it is important to note that our recent results reflect the benefit from the decline in the allowance for bad debts that I just mentioned. Our operating performance has also positively impacted our balance sheet. Significant operating cash flow as a result of a strong portfolio performance, combined with a shift towards more cash, credit card, and third-party finance sales, has resulted in a meaningful improvement in our balance sheet. Net debt as a percent of our portfolio balance has declined from approximately 59% at January 31, 2020 to approximately 38% at October 31, 2021. In addition, we've experienced a significant reduction in our cost of funds. Earlier this fiscal year, we redeemed the remaining balance of our high yield notes using existing sources of liquidity. We also continue to benefit from a mature ABS program. Our most recent transaction that was completed in November represented the lowest all-in cost of funds we've experienced since reentering the ABS market in 2015. As a result of these actions, our annual interest expense has declined 47% from $59 million for fiscal year 2020 to $31 million for the last twelve months. We believe that the ABS market remains an attractive source of capital for us to finance our business, and we have demonstrated that we can successfully access this market in different environments. Continued deleveraging and better ABS pricing has not only driven a reduction in our effective interest rate, but also provided us with significant flexibility to invest in our business and return capital to shareholders, which we are doing through our recently announced $150 million share buyback. Overall, the strategic decision to originate higher credit quality customers and better leverage our LTO partners has fundamentally de-risked our business, allowed us to refocus our growth strategy, and created arguably the strongest balance sheet and capital position in our 132-year history. I'm extremely pleased with the progress we have made strengthening our balance sheet, which has created a strong financial platform to support our future growth initiatives. We believe we've established attractive but achievable financial targets and expect consolidated revenues to grow between 30% and 40% in three years to approximately $2-$2.2 billion. This equates to 9%-12% compound annual growth rate from consolidated revenues over the last 12 months. Overall, we believe this long-term growth rate compares favorably to similar retailers as well as the industry as a whole. Next year, we expect our credit segment revenues to be below this long-term goal as we continue to offer more cash option promotional product as we shift up the credit spectrum in our in-house financing program. Our revenue growth assumptions are aligned with our strategic growth initiatives that we outlined in today's presentation. To achieve our three-year revenue target really only requires us to deliver e-commerce and new store growth. We believe e-commerce penetration rate can grow from approximately 6% in Q3 of fiscal year 2022 to 20% of total revenue, which equates to over $235 million of growth in annual revenue by fiscal year 2025. We will do this primarily by improving conversion, as Chandra discussed. In addition, we believe we can add over $140 million of additional revenue to our retail business by fiscal year 2025, largely from new store expansion, which Rodney shared in his remarks. We believe we can combine these revenue growth goals with an EBIT margin of high single digits by fiscal year 2025. Our financial model is highly leverageable, and we believe we have a clear path to achieve this profitability goal by fiscal year 2025. It is important to note that strong EBIT margin over the trailing twelve months was positively impacted by the change in the allowance as a result of a shrinking and improving portfolio. This contributed 6.3% to our trailing 12-month EBIT margin, and we don't expect this benefit to continue in the future. As we think about the path to high single-digit EBIT margin, there are several gives and takes that are important to highlight. We expect retail margins to remain in the mid-30s% range as a result of less of our sales financed through our in-house credit offering and the assortment and pricing changes to target the non-Conn's finance customer, particularly the fast and reliable customer segment. In addition, over time, we expect higher e-commerce sales to pressure retail gross margin. We also believe there are opportunities across the business to improve profitability. First, higher revenues, primarily growth in e-commerce sales, will produce higher operating leverage. Fixed operating costs represent approximately 50% of our cost structure today. In fact, we are currently generating operating leverage in the retail segment as our retail segment operating margin expanded 80 basis points year-over-year during the third quarter, even as our retail gross margin declined by 140 basis points. On a consolidated basis, our SG&A expense has deleveraged primarily driven by the decline in finance charges and other revenues as a result of the strategic shift to originate less on balance sheet. As our portfolio begins to grow, we expect to leverage the operating expenses in our credit segment. Lastly, we believe there are additional opportunities to increase credit segment profitability, as TJ reviewed in his comments. Maintaining a strong liquidity and flexible capital structure allows us to accelerate our investments in initiatives that support our business model, drive growth, and generate compelling returns. We've had success investing capital in the business through investments in new stores, which generate relatively short payback and investing in technology to support our e-commerce growth. Over the next three years, we believe we have opportunities to continue to invest capital into the business by opening new stores, expanding our distribution network to support those stores and our e-commerce sales, and increasing our technology spend to unlock our e-commerce growth potential. Another benefit of our enhanced credit strategy and generating more sales off balance sheet is the reduced capital requirements to support portfolio growth. As a result, we have a capital allocation strategy that was unobtainable several years ago. Our capital allocation framework includes three priorities. Supporting organic growth initiatives, pursuing capability-driven acquisition opportunities, and returning capital to shareholders, which we are currently doing through our share buyback that was announced in December. I hope you can see from our presentations today that Conn's has an exciting path forward. We have developed a strategic plan that leverages our assets and capabilities, a more balanced customer value proposition, and our unique and differentiated business model. We are focused on reducing the volatility that has impacted our historical financial results while investing in our future to drive sustainable and profitable growth. We believe this performance will drive shareholder returns. Finally, I hope you recognize that Conn's has assembled a talented, motivated, and dedicated team of experienced leaders. Our members are our greatest assets, and I am proud of the success we have accomplished together. Before we begin the question and answer session, I wanna turn the presentation over to Norm Miller, our Executive Chairman, who will share a perspective from the board. Thank you, George. Good morning, everyone. I'm Norm Miller, Conn's Executive Chairman. It's an exciting time at Conn's. On behalf of my fellow directors, I am pleased to represent the board and share our perspective on the company's direction. Before assuming the role of Executive Chairman, I led Conn's as Chief Executive Officer for over six years. When I assumed the role, I saw a company with significant potential if the right infrastructure was assembled to support our enormous and untapped market opportunity. During my tenure as Chief Executive Officer, we successfully turned around our financial results, we built a disciplined and sophisticated credit platform, and refocused our retail strategy and assembled a best-in-class leadership team, all while driving record profitability. With a strong and compelling platform in place, it was time for me to step back from my operational duties and hand the company over to a new leader with the right skill set to drive the next phase of the company's growth and capitalize on the enormous opportunities ahead of us. Since joining the company as Chief Executive Officer in August 2021, Chandra Holt has worked with the team enhancing our strategic growth plan, aligning our winning culture around a common set of goals, expanding our e-commerce capabilities, and positioning the company for long-term success. We have a leadership team that possesses the necessary skills to deliver on Conn's promising future. As the COVID-19 pandemic continues to impact many aspects of our business, our ability to navigate this fluid environment is a direct result of our customer value proposition and the strength of our platform. In fact, our business has been tested multiple times over the past 132-year history, and resiliency and innovation are woven into our DNA. We believe we are emerging from the COVID pandemic stronger and better positioned to compete, as we have demonstrated many times throughout our long history. Supporting Chandra is a team of highly motivated, experienced leaders with the necessary retail and credit skills to manage our unique business model. Today, you heard presentations from Rodney, TJ, and George, all who are key members of an extremely strong leadership team. In addition, over 4,500 dedicated associates work across our stores, distribution centers, call centers, and our corporate office. I am proud to report that we have made tremendous progress improving the diversity of our organization to better reflect the makeup of our communities. Currently, over 70% of all of our employees are people of color and over 40% are female. In addition, nearly 60% of people in management roles are people of color and over 30% are female. We are committed to diversity at every level of the organization. Our diversity reflects our customers and communities and helps us create an optimal environment for everyone. Diversity, equity, and inclusion is a crucial and transformational component of our workplace as well as within our society. Conn's is committed to initiatives that promote opportunities for all. Our board is comprised of a committed and experienced group of executives representing backgrounds across a range of relevant industries. Board oversight at Conn's extends beyond typical review of corporate items like strategy, budget, and governance to additional areas including credit risk and compliance. I am impressed by the board's high level of engagement and strong desire to create value for our shareholders. As you can see from today's presentations, Chandra and the leadership team have developed a compelling strategic growth plan. We believe this plan positions the company for growth and profitability over the next three years, while also laying the foundation to capitalize on opportunities well into the future. Building an innovative and fast-growing e-commerce organization while expanding our strong value proposition to more customers are just some of the efforts underway to transform Conn's into a modern and best-in-class unified retailer. The board is aligned with management's approach, and we are confident the growth strategies underway, combined with our compelling value proposition and favorable market backdrop, can enable Conn's to become a two-plus billion-dollar revenue, highly profitable company in the next three years. Reflecting our confidence in the future, in December 2021, the board authorized a $150 million share repurchase program, which represented approximately 30% of Conn's market cap when the buyback was announced. We are committed to creating value for our shareholders by continuing to prioritize capital allocation initiatives that support our growth strategies, maintain flexibility to pursue inorganic opportunities, and return excess capital to shareholders through our share repurchase program. On behalf of my fellow board members, I want to use this opportunity to thank the entire Conn's team for their hard work and dedication. As a significant Conn's shareholder myself, I am encouraged by the direction we are headed and confident in our position to create considerable value for our shareholders in the coming years. I also want to thank everyone for participating in today's presentation and spending your time to learn more about our great company and our exciting path ahead. Thank you. Thank you, Norm. In closing, the results from the past year and what we've shared today in terms of our vision for the future wouldn't be possible without the dedication and resilience of our over 4,500 employees. I want to thank all of them for their commitment to our company, our customers, and our local communities. Finally, I want to thank all of you for joining us today. We appreciate your interest in Conn's, and I look forward to sharing our success with you in the future. Now, in a few minutes, we'll open it up for our question and answer session. Welcome to Conn's Investor Day Q&A session. While the team is assembling, I'd like to provide a few important updates. Today's Q&A session will be a 20-minute session. Participants may submit questions by typing them directly into the Q&A box located under the video window. Questions will be anonymous and will be read aloud so that all participants can hear the question. With that, we'd like to kick off the Q&A session. Our first question of the day is: Are there any risks going beyond your core customer group? No. Our plan is to continue to strengthen our value proposition for our core financial access customer segment. One of our strategic priorities is enhancing our credit business, which will directly strengthen that value proposition for that core customer. The new initiatives and the initiatives that we're improving, the capabilities that we're building, while they will attract our faster-growing fast and reliable segment, they will also reinforce and strengthen our value proposition for our core segment, so we don't see any risk. Our second question of the day is: historically, periods of growth have caused credit issues. How is this time different? I'll take that one. This is a question that I get, I ask myself a lot, and that I've been asked, right? I think it boils back to some of the things I talked about in my presentation. The biggest thing that gives me comfort in that is our change in our credit spectrum. The things I talked about are in regards to the FICO score shifting up, but more importantly, our custom score to where we're booking more of that A credit quality customer. That's huge. Secondarily, the things we've done in the portfolio to help make sure that we're prudently using our borrower assistance programs and we're making sure that the portfolio is healthy. Those statistics around 60+ in re-age, I think, are also very beneficial. Those combined with the investments we've made around new custom scores, investments we've made around our systems, investments we've made around the data that we have. Then the most important thing to me is the investments in the talent. We took the talent we had, and we've made more investments, and that's gonna help us make sure that we stay pretty locked up and that we're able to monitor that and make sure that it doesn't create a credit issue in the future. Our next question is: what is the cadence, and how should we think about revenue and profitability over the next three years? Yeah. First of all, we're really excited by the opportunities we have to grow revenue and profitability over the next three years. On the revenue side, we're focused on achieving the $2 billion-$2.2 billion target in three years, which it's hard to predict, you know, what's gonna happen in any one particular year, but we're really focused on that long-term target. On the profitability side, you know, I think we talked about the high single-digit target over the next three years. I think it's important to think about first where we're starting, right, which is, you know, a little over 11% EBIT margin over the last 12 months. Over 6% of that was determined or generated by the change in the allowance. We're really starting from a mid-single-digit EBIT margin with a path towards high-single-digit EBIT margin over three years. As I outlined in some of the prepared remarks, there's really three factors that we're focused on, right? The first is retail gross margin. We expect to see some pressure on retail gross margin as we expand our assortment and grow the e-commerce business, but we think that's gonna land in the mid-30% range, you know, over the three-year period. On SG&A, we expect to leverage the fixed cost basis that we have with growth in revenue, specifically the growth that we expect to see on the e-commerce side of the house. On the credit side, you know, we continue to target either at or above 1,000 basis points of spread in the credit segment, but believe that there are opportunities to actually improve profitability in the credit side of the house that TJ mentioned. Our next question is: The smaller store concept is really exciting. Can you provide more information? Sure, yeah. I'll take this one. Our traditional format is about 40,000 sq ft. We have roughly, you know, 150-some-odd stores of that size. I said the flexible formats that we're building for the future range from about 20-25,000 sq ft. What makes them interesting to us is we actually put about 70% of the SKUs in those stores that fit into our traditional 40,000 sq ft boxes. Those 70% of SKUs actually generate about 90% of sales for the larger box. What we've seen in the first year is these smaller format stores can actually produce close to the range that we gave you earlier in our larger legacy stores. We also think that's gonna be a huge win for us as we look at expanding into urban and rural markets. Our next question is why just focus on growing e-commerce versus opening stores? At a high level, we want our customers to be able to shop with us however they choose, whether that's in store or online. As we look at growing the business, and especially as we look at expanding into new markets, we know having a distribution center that's close to our customers is critical to delivering on our value proposition, so we can get our customers next day delivery and the in-house service repair. You know, as we look at expansion, we have to look at the best way to support the distribution center with demand and what's the best way to generate that demand. The combination of stores and e-commerce seems to be the best combination right now. On top of that, stores are still a very good return on invested capital, and so stores will continue to be core and essential to our business model going forward. Our next question is: Can you provide additional detail on the three key revenue opportunities and how you plan to achieve this goal? Sure. I'll take that one. I would really break them down into two key revenue opportunities. The first is e-commerce, and you know, we've got a path to grow our e-commerce business from 6% of sales that it is today to approximately 20%. We talked about that a lot in the presentation, you know, driven primarily by increases in conversion on the front end of the platform because we already have the backend distribution network built. That's one, you know, really big and key opportunity to grow revenue. The other is the geographic expansion. You know, one of the things that is different about our geographic expansion today compared to prior years is the fact that we're that less of our retail sales are financed on balance sheet, which means that, you know, we have opportunities to grow our geographic expansion while taking less on balance sheet risk. As you heard from Rodney in his prepared remarks, you know, we've got a playbook and experience in growing geographically and opening new stores that is predicated over the last 10 years, and we're optimistic that we can continue to do that for the future. Our next question is: Are there other opportunities to expand your private label offerings? Yeah, no, that's actually a great question. You know, we feel like we have a meaningful opportunity to grow our private label business, and we saw that last year when we launched DreamSpot. I shared with you earlier in the prepared remarks. I mean, we're extremely excited about DreamSpot. It's producing tremendous sales, and our customers really love the value for the price. Where you'll see us move naturally next would be to an expanded assortment through case goods and upholstery furniture. Furniture is where we're gonna start the next journey on private label, and you'll see us move forward through other categories where it makes sense. Our next question is: Can you provide more information on Conn's risk grades? Can you say that one more time, Melissa? Sure. Can you provide more information on Conn's risk grades? Yeah. The risk grades, we talked about that in my presentation a little bit. It's something that we spent a lot of time developing and then testing. What it really boils back to is our custom score. The custom score is a machine learning-based model that uses both traditional bureau and alternative data. It's a continuous score, but then as we talk about that both internally with some of the senior leaders and we talk about that externally with some investors, right? We cluster those into those risk grades, and each risk grade is designed such that we have a predicted bad rate. As you go from an A to a B, it doubles those bad, the expected bad rate, if you will, doubles. When we implement that inside of our scores and what we add, the way we actually use it in our underwriting, we utilize that continuous score, and we're a lot more granular than that. We're pretty excited about it just because of the testing that we've done and the results, and it provided a tremendous lift over our prior custom score. It was about a 30% lift, and it's a tremendous lift over FICO, which was almost 50%. Those are huge benefits for us, as we utilize inside of our underwriting. It makes us so that, back to that first question I was asked, I'm more confident that we'll be able to handle credit changes if they come, and we're making the right decision on those applications that we get. Our next question is: E-commerce is a large opportunity for growth, and you seem to have a powerful platform. Can you provide more information on the opportunities you have to get to $300 million in e-commerce sales over the next three years? Sure. I can take that one. Yes, e-commerce is a really big opportunity for us. As I said earlier today, you know, you've got traffic, which we've got strong traffic. It's growing, and I think it will continue to grow, especially as we expand into new markets. You've got average order value, which is on the higher end, you know, for us because we have high ticket items, but we think we can do even better there, you know, as we build digital capabilities to add units per transaction. Our big opportunity is in conversion. Conversion really starts with the traffic that you generate for the site and the quality of that traffic. We have an opportunity to improve our search engine optimization, so we're getting higher quality traffic that converts at a higher rate. Once you get the customers to the site, you need to make sure you have what they're looking for. Everything that Rodney talked about with how we're gonna expand the assortment will be critical. Right now, our assortment online is directly reflective of what we have in the store. When people shop online, they expect an extended assortment. That's what our merchant team is working on now. You need to have the right prices and various price ranges to make sure you're meeting the customer demand. Once a customer finds the item that they're looking for at the right price, they wanna understand how it's gonna get to them. Right now, we have next day delivery, which I think is one of our best kept secrets, and we wanna be famous for next day white glove delivery. We need to do a better job communicating both on the site and in external marketing of that next day delivery capability with the installation. Finally, one of our, you know, bigger opportunities around conversion is the site itself and the digital experience. If you look at where Conn's was just three years ago, only $3 million in e-commerce sales, a lot of that was because there was a lack of a functional front end from an e-commerce standpoint. While we've made investments and it's showing it's producing a lot of growth in e-commerce, we still have a long way to go to get to the digital experience that we want to have. We have a very robust tech roadmap that breaks down every point of the customer journey and figures out where are we today, where do we want to be, and what investments do we need to get there. We feel, you know, very bullish about our e-commerce opportunity and our ability to drive that going forward. Our next question is: what investments are needed to transform Conn's into a unified retailer? I can take that one. We're very excited about unified commerce because it'll help our overall business. It'll help our online business. It'll help our sales associates in store convert more and more of our store traffic into sales. From an investment standpoint, the great thing about unified commerce for Conn's is that almost half of the work is already complete because our back end is shared between online and stores. Our supply chain is the same for stores and online, so we've kinda checked the box on that one a little bit. Where we need to invest is on the front end and getting a unified front end that both the stores and e-commerce can operate off of which we're working against with our tech roadmap. You know, as we've set out to grow e-commerce, we have increased our CapEx for e-commerce. If you look back over the past three years, we're investing about $10 million in CapEx, and last year, we invested just north of $20 million. Our plan is to continue to invest at that higher rate until we get to a place where we feel great about our digital experience and we land unified commerce. Our next question is: What level of profitability are you targeting for the credit segment? You want me to take that? Go ahead. Okay. We talked about in my presentation, it's about 1,000 basis points is our continued target, right? We also laid out the three segments from a financial perspective, where we're talking about the less than 550, the 550 to 660, and the 660 plus. I think as we go through and optimize those segments, specifically that core segment, which is really where the 1,000 basis points come from, we're gonna be able to improve the profitability of Conn's in general. Then inside the credit portfolios, we focus on that core segment and we do things around the offer engine that I mentioned, and we do things to hone in on giving those customers the right offer, that we're gonna be able to improve profitability. George, anything you'd add? Yeah, I would just add that, over the last couple years, we've seen a decline in the portfolio balance that's been quite significant. We've deleveraged on some of the fixed costs in the credit segment that as we start to grow the receivable balance over the next three years, we'll leverage fixed cost in the credit segment. As a follow-up to this question, how does a rising rate environment impact Conn's? Yeah. Obviously we have some floating rate debt on our balance sheet. We have some exposure to rising interest rates environment. I would tell you that if you look at our business today and the leverage in our business today compared to, you know, just two or three years ago, as a percentage of the portfolio balance, it's significantly less. You know, on the one hand, we're less exposed to rate movements than we were, you know, a few years ago, but we also have a significant portion of our debt that's termed out on the ABS market. You know, we've got some exposure but also have mitigating factors for, you know, the impact of rising rates. Our next question is, what do you have to do to get your assortment aligned with both your payment options as well as your e-commerce strategy? I can take that one. When you look at our payment options, they span the credit spectrum. When you look at our assortment, our assortment, as Rodney mentioned earlier, is very focused in the center. What we need to do with our assortment is round out the tails. I think TJ, in your earlier comments, he talked about the lease-to-own finance option. If somebody is qualifying for lease to own and they only are qualified for $1,500 and they're looking for a refrigerator and we don't have one that's less than $1,500, then we're not gonna be able to convert that sale. Making sure that we extend our assortment, especially now that we have e-commerce, and you can do that without investing a lot of inventory, so that we're able to provide customers with the products that they're looking for. Ronnie, I don't know if you wanna add anything about assortment expansion. Yeah. I mean, like Chandra mentioned, I mean, we're really focused on better, best, and we know we have opportunities in the premium category. We also have opportunities in the good category. Like I've talked about earlier in the presentation, we are gonna expand and use private label to leverage ourselves into the good category, but we're also gonna use national brands as well. I do believe, through an assortment built online, we can use our sales associates in-store to really leverage and be able to touch all customers throughout all the credit segments. Our next question is: can you provide more information on your rebranding strategy and timeline? Yeah. We're very excited about rebranding. You know, if this meeting was, you know, fast-forward to six months from now, we'd probably have more information. We're still, you know, in the early innings. We're in the research and discovery phase. We know our current brand, you know, resonates very strongly with our core customer. As we broaden that value proposition, we also need our brand to be able to extend a little bit further. Right now we're in the early phases. We're learning, we're figuring out what our strategy is. Our plan is to do some type of rebranding initiative this fiscal year. Our next question is: How unique are Conn's payment options versus other competitor offers? I'll work on answering that one. If you go out and you look at the competitors, I think a lot of the retail competitors have the opportunity from a credit card perspective. Many of them have also started to add the LTO payment option that sits out there. If you think back to the three financial segments that I talked about being core to Conn's, we also have a 660 option that involves a private label credit card. We're a little under market on that one, so we talked about opportunities to improve that, right? We definitely have that as a feature functionality. Then we're doing very well and over-indexing in that less than 550 segment. What that leaves versus a lot of the traditional retailers is where we get a core portion of our business. It's almost 50%. Almost 51% comes out of that core segment. In that segment, right, we have the opportunity to take the dollars that we would make if we were a finance company, and we reinvest those back into our customers. It expands their buying power, it enables them to buy and become loyal with the Conn's brand, and I think that's a huge key differentiator for us as we go forward and try and drive our growth and our sales by offering that full spectrum of credit payment options versus just focusing on the in-house or just on the card and leaving some gaps. This next question will be our last question of the day. Conn's growth story is really exciting. How many stores do you think the country can support in the future? You know, I can take this one. I think if you want to talk about retail strategy first, and the real estate strategy that layers into it, lately we've actually been focused on markets, not necessarily just locations and stores. When we look at market, we bring everyone to the table across the retail divisions to say, "Where should the distribution center be located to service all of our guest needs, not just in store, but digital guest needs?" I think that's something we found success in. When I talk about the three things that we have to do to really create success when we go to market. I think to answer the question, the big focus that we look at is what does that digital capability look like, but then where do stores need to be to leverage to service our customers' needs, both from a sales and a servicing perspective. Like Chandra mentioned, next day delivery is a key component of our value proposition. And really, we think we can get to 500+ stores in the long run over time. Great. That concludes our Q&A session. I just wanted to close by thanking all of you for joining us today, even though it was virtual. Hopefully, we're able to communicate what the new vision for Conn's is and get everyone excited, as excited as we are about the business. With that, well, we'll close the meeting, and we look forward to keeping everyone, you know, up to date on our progress going forward. Thank you.