Q: Please comment on earnings; thanks
5i Research Answer:
EPS of $4.32 beat estimates of $4.13; revenue of $383M missed estimates of $387M. EBITDA of $177M beat estimates by 3.4%. Revenue rose 19%. Originations rose 16% to $839M. Loan portfolio was $4.39B, up 28%. Return on equity was 25.7% down from 26.6% last year. Funding capacity is $1.8B. Charge offs were 9.2%, up slightly from 8.8%, but credit quality remains high overall. Average loan rate was 29.3%. There was growth in new customers which bodes well for the future. The CEO transition should be OK. Mr. Ingram as interim CEO was CEO for 17 years, and will be fully capable while a permanent CEO is sought. We are comfortable with these numbers.