WRLD - Earnings call transcript Q2 2019 | World Acceptance Corporation

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Operator

Good morning, and welcome to the World Acceptance Corporation-sponsored Second Quarter Press Release Conference Call. This call is being recorded. [Operator Instructions] Before we begin, the corporation has requested that I make the following announcement. The comments made during this conference call may contain certain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 that represent the Corporation's expectations and beliefs concerning future events. Such forward-looking statements are about matters that are inherently subject to risks and uncertainties. any of words as expect, forward-looking anticipate, will should those identified as believe, statements. than foregoing and the the by estimate, or other historical expressions well fact those may, and Statements similar of are variation intend, plan,

or undertake earnings XXXX, or in from Additional results today's to update implied host, the statements release and forward-looking any any to subsequent are and At statements Chad included with filed in paragraph forward-looking the statements the XX, section it cause forward-looking President Officer. time or from time, pleasure discussing sir. The Please Risk in differ regarding SEC year fiscal most time. of to any factors my makes. such to it information is could furnished and over in the your the the Prashad, not ended go Executive forward-looking ahead, for obligation that recent March press and actual to this performance expectations turn expressed to Factors XX-K reports Form does floor statements the Chief Corporation's Corporation

Chad Prashad

go you all we CEO and review this Well, for questions. Good Chad is few Prashad, trust President ahead open well as chance questions. the as morning up a any give this a World morning. we'll Acceptance. At more I and you've time, financials that This released to had to of guys are minutes script. the

Operator

now first ahead, of take Please question our from you. sir. Caintic Thank Stephens. Instructions] We Vincent go will [Operator

Vincent Caintic

guys. thanks Hey,

was that you a give maybe those growth provisions of new and little continue the that us the you just a on the perhaps, given were of bit how you that the losses that, And just as new explain sense be we saw to growth are trend that that if of credit should maybe And about but level a talked strong of growth -- You is a trend customers, then, I expecting bit if can elevated the experiencing. if kind scripts higher, if further? could result wondering growing. saw bit? new you a prepared an that for with

Chad Prashad

Yes.

faster, what improvements a in a to our contributing the us into up our operational so can and and fair about. are to analytics of of in stores that customers tremendously see growth. we've year over number the there amount Mostly, So you're customers applications talking or customer factors begin improvements Also, so. new made contributing last receive is which allow faster are new processing you year-over-year, marketing

month, large provisions that are unusually XX On a of a Johnny of with an let things One the that provision is, just the going XX, quarter. became we there chime but have the second, due on are in on this due. of couple Roughly had we side, for roughly accounts pick the which XX, the month. I'll their first to amount and date, their they -- we've sorry, increases extensions customers due allow payment on -- who number date the are payment the payment of which first to requesting them payment want a be during doubling

which and the September due is Sunday. with year, are XX this XX fell of month, So who month a number August end the of that at the on in the the what customers days July having resulted days, having

Johnny and the on can the to October payments XX have we large on notice more unusually did due, specifically of been amount due XX just speak XX coming in September. on that an XX were thing is that. at provisions, would that recently past in and one accounts So of And

John Calmes

Right.

past X to due we of at delinquency, especially XX days early sort an so of in our X so really mentioned, -- end had Chad the in September. that as to So uptick --

So at was XX.X% last bucket XX compared XX.X% when at to year. September of to to look XX due delinquencies, due September past days XX we

So be allowed when through that out for. at number to flows needs our sits a that higher model, it

expected, in XX.X% And week to the increase October, year. payments we in dropped week of back funded of month end the October. so first the saw the of a That's of during we the last of As delinquency that compared significant October. as XX.X% October of down following, to end at

And year. that customers our new those versus rates similar QX, it rates years that essentially the we line, better get rate When now, right at mean, company was in the did in fact, is several proportion recent you I that loss some of second increase of as growing in when when even back those charge-off October years. some -- are are well happened years. of than in substantially to but you the of of previous improved from as in So, you in a -- September have larger lot last QX portfolio mentioned -- our we years quarters

still the they're performing looking performance. And line So how comfortable of in performance originations on vintage. that they're performing we're portfolio, we're the and those and with past at with

function weakness. don't dropping to credit of we having achieve is We're So quality similar quality better is credit growth. not and there just more or is The believe a growth.

Vincent Caintic

but where where And mean large be that's reserve sense a Does would one kind helpful. quantify And delinquencies any this piece that? there back that in you would that if on come can expect you in helpful. of is October. really That's That September, release Okay. high that quarter?

John Calmes

-- month of still only one it's it's right. quarter, the Yes,

quarter, asset but So be project could I of case. to the in what's want do not that my too the much

Vincent Caintic

Okay, sense. makes

seeing is, there. last what out competitive environment, you're the just on Just one just my

just that you're good of might customers. the small with that So are I'm into of heard you've and space, higher with kind some wondering -- the generally have got you growth what Heard seeing new banks competition? APR getting dollar,

Chad Prashad

Yes.

this On also awareness. see competition quality range the competition side, increased we increases customers of one do we that So into credit higher the serve.

internet more use more we're with using different So themselves find, and source types educate the about loans. just seeing and of customers to of

So But but installment are we been more general, believe competitive From we're educated helpful, and and loan ago. entering a that's who would space could environment, consumers the customer what we find we perspective. in it's from than have now to to to believe we that. lead highest customers other hurt is years more what going are several competitors at entered a that just no our probably growth area other reason believe significantly this -- really -- is And see that have going entered us new now. customers we all-time right even growth as record to growth

Vincent Caintic

Thanks Okay, great. very much.

Operator

our Joseph go ahead. take Kyle Jefferies. of [Operator Instructions] We from question will Please now next

Kyle Joseph

the growth of taking morning, on wanted the question good is customers? for question. portfolio just can the you But my preference you Or my to If customers thanks best Hey, and I yield. for about pockets specific us? guys -- guys and terms the of larger products? Are looking they where for quantify what's seeing new new primarily sort of lower-yielding loans? balance, in the

Chad Prashad

the still lot far -- area new of Average in range. our the $X,XXX. increases so customer still have still. haven't amounts the in been customer increasing customer increases loan seen So, $X,XXX are our in a We small-dollar $X,XXX, above mostly area

then, over perspective, consistent And very that from say, years. the or So Johnny? last, the four yield five remains we'll

John Calmes

Yes.

keep point can, customers. customers as customers right, we on them I think riskiest smallest to as are possibly our So the been we new because always has loan find to new

want And loss that -- and over to the customers So we'll them we'll loans willingness generally, given as lower-yielding we the perform time. pay, minimize the larger, increase demonstrate those to fall. into

in new you've some good customer to In that now have good had in yield increases seen the of that, but see lower-yielding reduced have vintage the So, general, that customer space increased and some demonstrated a we growth, did into where states, drop in larger -- of we're fine as the We've due in right. an result of growth of in rates we -- they performance. advanced we pockets years that growing rates. as good sort some been demand uptick spread, customers older just several

Chad Prashad

say portfolio. Yes. that We dropped of the X% represented just It rates. we

So small. it's rather

Kyle Joseph

state just looks about in you And really color. obviously, with of growth your about sales sorry? new versus -- between store That's good ongoing balance opportunities also loan helpful builds talk a can you the sales. acquisition. seeing same-store are new your small a like into growth Okay, But growth, pickup -- got expanded guys a forward, going then, it. or same-store It you thinking same-store

Chad Prashad

sure. Yes,

in. major growth be state we're in did on overall just portfolio same-store flesh metric an overall, states So next increase growth our we the as be increasing same-store over a as But it's stores, focus or footprint out the continuing as increasing several already geographically we're our our that whether focus thinking. will can in to increasing new is of Part our as years. the expanding will we of much

Kyle Joseph

And last quarter. helpful. one then sense it That's for me But Mexico you expect the just question be? sale, can your you missed for given and tax it. a give if us where to rate modeling I Got apologies

John Calmes

Sure.

So, rate XX%. tax around to expect be going forward, we the

Kyle Joseph

lot That's questions. perfect. a helpful. Thanks Okay, my answering for

Operator

remarks. further are any Mr. or [Operator conference Prashad back to like Instructions] I'd no questions for over at closing It appears time. now to additional there the this turn

Chad Prashad

you. think you questions to quarter. experienced look next to the forward good here look the years. and we've growth quarter We today seeing and next I continue really appreciate a over Thank this several quarter forward in

Operator

quarterly participation. teleconference Thank for This you the call. Corporation World Acceptance your concludes

now may disconnect. You

World Acceptance (WRLD) 2 Nov 182019 Q2 Earnings call transcript