Elevate Credit, Inc. (NYSE:ELVT) Q3 2019 Earnings Conference Call - Final Transcript

Nov 04, 2019 • 05:00 pm ET


Elevate Credit, Inc. (NYSE:ELVT) Q3 2019 Earnings Conference Call - Final Transcript


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Greetings. Welcome to Elevate Third Quarter 2019 Earnings Call. [Operator Instructions]

I will now turn the conference over to your host, Daniel Rhea, Communications Manager. Thank you. You may begin.

Daniel Rhea

Good afternoon and thanks for joining us on Elevate's third quarter 2019 earnings conference call. Earlier today, we issued a press release with our third 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 as of 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 Interim Chief Executive Officer, Jason Harvison; and Chief Financial Officer, Chris Lutes.

I will now turn the call over to Jason.

Jason Harvison

Good afternoon and thanks for joining us on our third quarter earnings call. As you saw in our release, we are proud to report another quarter of strong profitability with adjusted EBITDA growth of 57%, which resulted in a record margin for Q3 of 15%. Year-to-date, our net income has grown over 185% and we ended Q3 with diluted earnings per share of $0.11.

In my remarks today, I've planned to give color on the key drivers of our profitability, but also to update you on our pace of originations which as you know have been consciously moderated this year in conjunction with the deployment of our new credit models. Lastly, I will provide a few key business updates. Before I do though, let me first reiterate our mission here at Elevate, which is to be the most trusted and preferred credit provider to the new middle class. I want to start the call here because the drivers of our profitability and our growth both stem from a very real need for non-prime credit definitely in the consumer space daily.

We believe our products are well positioned to continue to meet this vast and underserved market. To be clear, we have certainly changed