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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Christopher Lutes

over to Jason, I would like to take a minute to say how much I've enjoyed working with Ken over these past 13 years. It's not often a CEO and CFO can last that long together. In fact, I think only my wife has put up with me for a longer period of time. I've appreciated the time we have spent, along with Jason, building this company. I wish them the best, and glad he's staying on our Board. I'm also very pleased with Jason being named the Interim CEO and hope it becomes a permanent title.

With that, let me turn the call back over to Jason.

Jason Harvison

Thanks, Chris. And before we get to your questions, let me wrap up our remarks on two topics. First, on Slide 9, I'd like to give the quick backdrop of where we stand today in 2019 relative to our strategic priorities. As you know, we amended our credit facility with VPC earlier this year to improve our funding costs and drive additional profit to the bottom line.

Next, as we've noted, we have fully deployed our enhanced credit models, but also, as we mentioned, plan to pace originations and continue to prioritize credit quality. Looking ahead to the second half of 2019 and into 2020, we believe that our new credit platform will scale and benefit more broadly from further penetration across marketing channels.

Lastly, in the UK, as Chris mentioned, we continue to monitor the regulatory situation and expect our balances to remain relatively flat there until we know more.

With that as a segue, let me turn to Slide 10 to discuss some incremental regulatory news, which I'm sure you've all seen. As you know, in California, a piece of legislation named AB 539 continues to move ahead. In summary, the proposal would limit the amount of interest that can be charged on loans from $2,500 to $10,000. So what does this mean for Elevate?

As you know, we believe our product diversity serves as a competitive advantage, and similar to our recent experience in Ohio, we expect to be able to continue to serve California consumers via our bank sponsors that are not subject to the same proposed state level rate limitations. We'll stay tuned here clearly, but believe we are well positioned.

With that, I would like to again reiterate my excitement for Elevate moving forward. The combination of strong credit, margin improvements and measured growth will allow us to show tremendous value to shareholders now and in the future.

With that, I'll turn the call over for questions.