Elevate Credit, Inc. (NYSE:ELVT) Q2 2019 Earnings Conference Call - Final Transcript

Jul 29, 2019 • 05:00 pm ET


Elevate Credit, Inc. (NYSE:ELVT) Q2 2019 Earnings Conference Call - Final Transcript


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Greetings, and welcome to the Elevate Credit Second Quarter 2019 Earnings Call. [Operator Instructions]

I would now like to turn the conference over to our host, Daniel Rhea, Manager of Communications for Elevate Credit. Thank you. You may begin.

Daniel Rhea

Good afternoon, and thanks for joining us on Elevate's Second Quarter 2019 Earnings Conference Call. Earlier today, we issued a press release with our second quarter results. A copy of the release is available on our website at elevate.com/investors. Today's call is being webcast and is accompanied by a slide presentation, which is also available on our website. Please refer now to Slide 2 of that presentation.

Our remarks and answers will include forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements are subject to risks that could cause actual results to be materially different from those expressed or implied by such forward-looking statements. These risks include, among others, matters that we have described in our press release issued today, our most recent quarterly report on Form 10-Q and other filings we make with the SEC.

Please note that all forward-looking statements speak only to the date of this call, and we disclaim any obligation to update these forward-looking statements. During our call today, we'll make reference to non-GAAP financial measures. For a complete reconciliation of historical non-GAAP to GAAP financial measures, please refer to our press release issued today and our slide presentation, both of which have been furnished to the SEC and are available on our website at elevate.com/investors. We do not provide a reconciliation of forward-looking non-GAAP financial measures due to our inability to project special charges and certain expenses.

Joining me on the call today are outgoing CEO, Ken Rees; Interim CEO, Jason Harvison; and CFO, Chris Lutes. I will now turn the call over to Ken.

Kenneth Rees

Good afternoon, and thanks for listening in to our second quarter conference call. I'm very pleased to report another strong quarter of earnings growth. Thus far in 2019, we've already delivered over $19 million in net income or $0.43 per fully diluted share, and we are reaffirming our full year guidance for $25 million to $30 million in net income. This will be more than double the net income we delivered in 2018.

Elevate's bottom line performance was driven by excellent credit quality and very low rates of fraud across all of our products. Additionally, our customer acquisition costs have remained better than target level. In short, the business is performing extremely well. This is why I believe now is a good time for me to step down as CEO. I'm very proud of our financial accomplishments since our launch in 2014. But I'm even proud of the leadership team here at Elevate. They're all seasoned and dedicated professionals that have been instrumental in the rapid growth of the company and in generating solid profitability over the past two years.

In particular, Jason Harvison, who's been named Interim CEO, has proven that he can lead