Regional Management (RM) Q4 2019 Earnings Call Transcript

Regional Management (RM 1.78%)
Q4 2019 Earnings Call
Feb 25, 2020, 5:00 p.m. ET

Contents:

• Prepared Remarks
• Questions and Answers
• Call Participants

Prepared Remarks:

Operator

Thank you for standing by. This is the conference operator. Welcome to the Regional Management fourth-quarter 2019 earnings conference call. [Operator instructions] I would now like to turn the conference over to Garrett Edson with ICR.

Please go ahead.

Garrett Edson -- ICR, Investor Relations

Thank you and good afternoon. By now, everyone should have access to our earnings announcement and supplemental presentation which was released prior to this call and which may also be found on our website at regionalmanagement.com. Before we begin our formal remarks, I will remind everyone that part of our discussion today may include forward-looking statements which are based on the expectations, estimates and projections of management as of today. The forward-looking statements in our discussion are subject to various assumptions, risks, uncertainties and other factors that are difficult to predict and that could cause actual results to differ materially from those expressed or implied in the forward-looking statements.

These statements are not guarantees of future performance and therefore, undue reliance should not be placed upon them. We refer all of you to our press release, presentation and recent filings with the SEC for a more detailed discussion of our forward-looking statements and the risks and uncertainties that could impact the future operating results and financial condition of Regional Management Corp. We disclaim any intentions or obligations to update or revise any forward-looking statements, except to the extent required by applicable law. I would now like to introduce Peter Knitzer, president and CEO of Regional Management Corp.

Peter Knitzer -- President and Chief Executive Officer

Thanks Garrett. And welcome to our fourth-quarter 2019 earnings call. I'm joined by Rob Beck, our chief financial officer, who will take you through the supplemental financial presentation available on our website. We closed 2019 with a record quarter, an appropriate capstone to a banner year.

In the fourth quarter, we posted diluted EPS of $1.38, an improvement of 53% over the fourth quarter of 2018. The full year of 2019, we generated diluted EPS of $3.8, a 30% increase from 2018. Our team achieved these strong results through consistent, sharp execution on our short- and long-term strategic objectives. We continue to enjoy the benefits of our hybrid strategy of growing receivables in our existing branches and expanding our branch footprint.

We grew finance receivables to $1.1 billion at year-end, and average receivables per branch up $3 million for the first time. This receivable growth generated a year-over-year revenue improvement of 17% in the fourth quarter. Throughout this period of significant growth, we've also maintained stable and predictable credit performance. Our net credit loss rate of 9.2% in the fourth quarter of 2019 was comparable to our loss rate of 9.1% in the prior-year period, and our year-end 30-day and 90-day delinquency rate decreased 50 basis points and 30 basis points, respectively, from the prior-year period.

We've also driven operating leverage while continuing to invest in our business. year over year, we improved our efficiency ratio by 200 basis points to 41.7%. We improved our operating expense ratio by 80 basis points to 15.3% in the fourth quarter. Looking ahead to 2020 and beyond, Regional's future is extremely bright with tremendous opportunity to enhance our customer experience to our top and bottom line and generate significant shareholder value.

For our customers, our goal is to provide best-in-class service whenever, wherever and however they choose to reach us. Our high customer satisfaction is a significant reason why we achieved double-digit growth in our finance receivables for 19 consecutive quarters on a year-over-year basis. Our branch operations remain fundamental to that success and growth. To that end, we opened eight net new branches in the fourth quarter, and we expect to open between 25 and 30 branches in 2020.

As Rob will explain in greater detail, we have significant capacity to fund our growth. We've also continued to make progress toward becoming a true omnichannel provider. We achieved another quarter of year-over-year increase and the percentage of new borrower originations generated by digital leads, with 22% of our new originations sourced through digital channels, up from 19% in the fourth quarter of 2018. As we discussed on our prior call, in 2020, we plan to make additional robust investments in our digital capabilities and technology infrastructure.

We believe that these investments are vital to support our growth, better serve our customers, drive efficiency and expand margins over time. As we've consistently noted, the credit profile of our customers remains healthy. Approximately 66% of our core loan portfolio has now passed our new scorecard underwriting criteria. And the scorecards are performing in line with our expectations.

We continue to believe that they will serve us well in any macroeconomic environment. In our press release, we described two first-quarter 2020 developments. First, as you know, we've transitioned to CECL accounting effective January 1. Rob will take you through the impact of the CECL transition shortly.

Second, in January, human error caused an isolated IT infrastructure event that resulted in an extended outage of our loan management system. During the outage, we continued to book convenience check loans and our branches remained open, serviced customers and accepted most forms of payment. However, during that time, we were unable to originate branch loans and process certain types of electronic payments. As a result, we're estimating that the outage will adversely impact net income by approximately $1.3 million in the first quarter of 2020 and by an additional $300,000 throughout the remainder of the year.

We resolved this technology issue. Our system has since been functioning normally, and we're confident that the issue won't occur again. Notwithstanding this development in the first quarter, the fundamentals of our business remained strong. We expect to continue our year-over-year double-digit receivable and revenue growth, and despite the earnings headwinds associated with the CECL transition, we expect modest year-over-year growth in our diluted EPS in 2020.

Following the CECL transition year, we look forward to returning to our year-over-year double-digit diluted EPS growth in 2021 and beyond. Finally, as a reminder, we completed our $25 million stock repurchase program in the fourth quarter of 2019, having repurchased a total of approximately 938,000 shares at a weighted average price of $26.65 per share. Our board of directors will continue to regularly evaluate our capital structure and opportunities to return additional capital to our shareholders. With that, I'll now turn the call over to Rob to provide additional color on our financials.

Rob Beck -- Chief Financial Officer

Thank you Peter. And hello everyone. We're extremely pleased with our fourth-quarter results. On Slide 3 of the supplemental presentation, we provide you with the highlights from the quarter.

As you can see, we generated fourth-quarter net income of $15.7 million, up 46% from the fourth quarter of 2018. Our 5.6% return on assets and 21.1% return on equity in the fourth quarter represent 100-basis-point and 540-basis-point improvement, respectively, from the prior-year period. These robust returns were driven by a 17.4% year-over-year increase in average finance receivables and our $63 million sequential growth in ending receivables which was just under the record pace that we set in the third quarter of 2019. This growth resulted in a 17% improvement in revenues over the prior-year period.

On a year-over-year basis, we've now grown revenues by double digits for 14 consecutive quarters. Our quarterly provision for credit losses rose $2.3 million or 9.9% year-over-year. The increase was a result of a $4 million of higher credit losses due to the growth of our portfolio partially offset by an improvement in the allowance that is attributable to the impact of our credit scorecards. Flipping to Slide 4.

Our core loan products grew 22% or $195 million compared to the prior-year period. Large loans grew 39% and now represent 55% of our total loan portfolio, while small loans grew 6% and make up 42% of our total portfolio. As a reminder, in the first quarter, we typically experience a reduction in the size of our total loan portfolio as loan demand softens and existing customers use bonuses and tax refunds to pay down loans. Turning to Slide 5.

Both interest and fee yield and total revenue yield declined 10 basis points from the prior-year period primarily due to the change in the mix of our product. In the first quarter, we expect interest and fee yield to be approximately 10 to 20 basis points lower than the prior-year period based on the ongoing change in the mix of our portfolio. It's also worth noting that as of December 31, 75% of our total portfolio has an APR at or below 36%. Moving on to Slide 6.

Our annualized net credit losses as a percentage of average finance receivables were 9.2% for the fourth quarter of 2019, an increase of 10 basis points from the prior-year period. The change in nonfile insurance business practice that we've discussed on prior calls accounted for a 10-basis-point increase in our loss rate. Flipping to Slide 7. Our allowance for credit losses as a percentage of finance receivables ticked down 20 basis points sequentially in the fourth quarter to 5.6%.

As you know, we implemented the new CECL accounting standard on January 1. As a result, we increased our reserve by $60 million and reduced our equity by approximately $46 million, net of $14 million in taxes. Our reserve rate increased from 5.6% on December 31 to 10.8% on January 1. Looking ahead, seasonal portfolio liquidation in the first quarter will result in a reserve release at the CECL reserve rate as of March 31.

Assuming current economic conditions, we expect our reserve rate to float between 10.4% and 11.2% throughout the remainder of 2020. As we've said consistently, CECL is strictly an accounting change. It doesn't present any challenges with respect to our debt covenants, funding of growth, cash flow of our operations or our ability to return capital to shareholders. We have more than adequate liquidity to fund and execute on our long-term strategies.

Turning to Slide 8. On the delinquency front, our 30-plus day and 90-plus day delinquency levels at December 31 stood at 7.2% and 3.2%, respectively. At the end of the first quarter, we expect our 30-plus day delinquency rate to be flat to the prior year, inclusive of an approximately 40 basis point adverse impact associated with the system outage. The system outage will result in approximately $650,000 increase to our first-quarter provision.

Going forward, all else being equal, we expect to see overall improved delinquency and credit loss performance, as a larger percentage of our portfolio, is underwritten by our custom scorecards. Turning to Slide 9 and 10. G&A expenses of $40.9 million in the fourth quarter of 2019 were $4.3 million higher than the prior-year period, in line with our expectations. Expenses associated with de novo branches opened since December 31, 2018, accounting for $600,000 of the year-over-year increase in operating expenses, while incremental expenses necessary to support loan growth in existing branches accounted for an additional $1 million.

However, even with our ongoing investments in digital capabilities, de novo expansion and the corresponding account growth, we continue to perform very well in managing our expenses, as evidenced by the significant improvements in our operating expense and efficiency ratios. In the first quarter, we expect G&A expense to be about $7.7 million to $7.9 million higher year-over-year, inclusive of approximately $800,000 of expenses associated with the system outage. Most of the G&A expense increase is related to higher branch operations expense and home office investment necessary to support our loan growth and de novo plans. We expect that our efficiency ratio and operating expense ratio will increase by 75 basis points and 30 basis points, respectively, compared to the prior-year period, with all the increase attributable to the system outages expenses.

Turning to Slide 11. Interest expense of $10.3 million was $600,000 higher in the fourth quarter of 2019 than the prior-year period primarily driven by larger long-term debt amounts outstanding due to strong growth in finance receivables. Our fourth-quarter interest expense as a percentage of average finance receivable improved 30 basis points sequentially to 3.8% primarily due to reductions in the Fed funds rate. We expect that our interest expense rate in the first quarter will be flat sequentially.

As shown on Slide 12, our funding profile remains strong, aided by the $130 million asset-backed securitization that we completed in October of 2019 which added fixed-rate funding at a weighted average coupon rate of 3.17%, our best execution to date. On Slide 13, you can see that as of December 31, we had $369 million of available funding and 51% of our outstanding long-term debt was at a fixed rate. Our fourth quarter funded debt-to-equity ratio was 2.7 to 1. Slide 14 illustrates our strong same-store sales growth and the importance of our de novo expansion strategy.

In our branches, more than one year old, same-store sales were up 16.7% in the fourth quarter of 2019 compared to 13.7% in the prior-year period primarily due to record receivable growth over the past three quarters. Our most mature branches, those opened for more than five years, continue to grow at double-digit rates. Our branches benefit from digitally sourced originations which are an increasing part of our new loan growth, as shown on Slide 15. As a reminder, these loans, while sourced digitally, are fully underwritten in our branches.

We plan to continue to make significant investments in our digital capabilities which drive growth, improve the customer experience and generate both front-end and back-end efficiencies. That concludes my remarks. I'll now turn the call back to Peter to wrap up.

Peter Knitzer -- President and Chief Executive Officer

Thanks Rob. It was an outstanding fourth quarter and a great end to the year. I'm grateful for all the hard work of our team members and their commitment to our customers. In 2019, we generated strong returns that we invested in our business and returned to our shareholders.

We've developed a resilient business model that is capable of supporting sustained growth well into the future. As we look to 2020, our growth strategy remains firmly intact. We plan to increase our finance receivables within our existing branches and open 25 to 30 new branches. We'll also continue to invest in our digital capabilities and technology infrastructure in order to drive growth and provide for an even better experience for our customers and team members.

With continued successful execution of our strategies, we'll expand our market share and generate additional value for our shareholders. Thank you again for your time and interest. I'll now open the call for questions. Operator, would you please open the lines.

Questions & Answers:

Operator

[Operator instructions] Our first question is from David Scharf with JMP Securities. Please go ahead.

David Scharf -- JMP Securities -- Analyst

Hi. Yeah, good afternoon. Thanks for taking my questions and terrific end to the year. Peter, I was wondering a couple of things.

First, I wanted to just get a better handle on the digital sourcing. I know, I think on the last quarter, you sort of called it out in your presentation for the first time. Can you remind me, is most of this direct to consumer, consumers going to the Regional's website because of the solicitation. Or is this almost exclusively through kind of third parties as channel partners?

Peter Knitzer -- President and Chief Executive Officer

David, hi. It's primarily through third-party lead generators. But we also get a fair number of customers or prospects going directly to our website where we prequalify them and direct them to the branches if they meet our prequalification criteria. And we've seen nice growth in that arena, up to 22% in the fourth quarter of this year -- of 2019.

So nice progress. We're investing in digital. We will continue to invest in digital so that we can serve our customers however whenever they want to be served by us.

David Scharf -- JMP Securities -- Analyst

Got it. And I know you had mentioned, regardless of the channel, you're doing the underwriting yourself at the branch level. But is the -- should we be thinking about the customer acquisition costs changing, either higher or lower as the mix of third-party source business increases?

Peter Knitzer -- President and Chief Executive Officer

Great question. What we do David is we optimize all of our marketing spend such that for the last dollar that we spend we make sure it's as efficient as it can be. So on the margin, we are not spending more money on digital or mail, etc., just to push dollars that way. We're looking at the best investment of our marketing dollars and then applying them accordingly.

David Scharf -- JMP Securities -- Analyst

Got it. OK. And then one follow-up, I'll get back in queue. The revenue upside, at least relative to our forecast, was almost entirely related to a stronger yield on the large loans, that was -- looking back at my notes from last quarter, maybe as a follow-up call and I think you had commented that the 29% yield would probably represent a high watermark.

We had kind of interpret that to mean it might be coming down a little bit if it stayed up there. Is there anything -- is it just geographic mix? I mean, is there anything on the pricing environment or just the geographic mix and state pricing regulations that could potentially take that yield even higher or is this a good place to keep it?

Peter Knitzer -- President and Chief Executive Officer

I think it's a pretty good place to keep it. Overall, for the portfolio, you'll see our yields continue to drop as we drive more of our customers to large loans. That's been going on, as you know, for quite some time. But we've been able to maintain our overall yield on our large loans.

And that's not state-specific because our average APR for our large loans is in the 30% range. And that's well below the states in which we operate.

David Scharf -- JMP Securities -- Analyst

Got it. Great. Thank you.

Peter Knitzer -- President and Chief Executive Officer

Thanks David.

Operator

The next question is from Sanjay Sakhrani with KBW. Please go ahead.

Steven Kwok -- KBW -- Analyst

Hi. This is actually Steven Kwok filling in for Sanjay. Thanks for taking my questions. The first one just around outage of the loan management system.

I guess, from a first-quarter perspective, how should we think about the impact to the loan growth. Because as we look back at last year, your loan growth was quite strong throughout the whole year. Any impact that we should think about for the first quarter and then for the rest of the year as well?

Peter Knitzer -- President and Chief Executive Officer

So in terms of loan growth, the customers who we couldn't open loans in the branches for a period of time took all their names, kept a log, reached out to them and have seen a nice rebound in our overall receivable growth since then. So any of the business that we didn't service during that period we're seeing come back. And we don't feel that this will be a long-term issue for the balance of the year. And as demonstrated by our strong growth in 2019, we think we'll be on a good trajectory for the balance of 2020.

Rob Beck -- Chief Financial Officer

Steven this is Rob. Just to remind you from my comments that we do normally experience seasonal liquidation in the first quarter related to bonuses and tax refunds. So you should expect to see that to continue this in the first quarter of '20.

Peter Knitzer -- President and Chief Executive Officer

Yeah. Good point Rob. Because as you know, Steven, that seasonally, we have some liquidation in our first quarter, but that's a natural occurrence of the business.

Steven Kwok -- KBW -- Analyst

Yeah. Yeah. We tend to look at it on a year-over-year basis that strips out kind of the seasonality there. And as a follow-up around the CECL provisions.

You mentioned that the reserve rate going forward should flow between 10.4% to 11.2%. Can you talk about seasonality? How we should think about which periods will be the high points and which periods will be low points of the reserve rate?

Rob Beck -- Chief Financial Officer

Yeah. And so that's kind of the guidance we gave previously is that range. Obviously, the 10.8% one-time reserve that we took on January 1 is comfortably in between that range. I think as you look going forward, what we will do as we see seasonality come through the CECL calculation is we will look to make some qualitative adjustments so that we mitigate some of the seasonal swings.

So that's something that we'll be providing more information on as we get through the year.

Steven Kwok -- KBW -- Analyst

Got it. Great. Thanks for taking my question.

Rob Beck -- Chief Financial Officer

Thanks Steven.

Operator

The next question is from Vincent Kendrick with Stephens. Please go ahead.

Unknown speaker

I also wanted to follow up on the system outage. So I appreciate the guidance you gave for the first quarter and the rest of the year and you gave also some guidance about the provision hit and so on. Is this something that -- so you gave first quarter, does it largely get complete in terms of impact by the second quarter or is it something that continues to trail for the rest of the year?

Peter Knitzer -- President and Chief Executive Officer

Yeah. I mean, the amount of impact is the last three quarters in total is $300,000 of net income. So we don't view this as significant for the balance of the year.

Unknown speaker

OK. So probably like mostly building that into the second quarter then. And is it largely provisions or is there -- like, if you could separate out the different impacts to your income statement?

Rob Beck -- Chief Financial Officer

Yeah. So it's largely on the revenue line. From a credit standpoint, you would expect that either the NCL impact or the reserving that's required will all happen in the first quarter. So what you see throughout the rest of the year that $300,000 Peter mentioned is really just some lost yield on some of the shortfall in volume during the -- that happened during the outage but a pretty de minimis amount.

Unknown speaker

OK. That makes sense. So very helpful. Second question I have to ask given the way the market's reacting, but any impact that you could foresee from a coronavirus pandemic to your business? And particularly, I think one thing investors have been asking is just the -- when people take out loans, what are they used for? I'm guessing it's not for travel, but if you could describe what most of the usage of loan originations afford that help.

Thank you.

Peter Knitzer -- President and Chief Executive Officer

I'll take the second part of the question first. Our customers use their funds from the loans for household expenses, for medical expenses or unforeseen needs that they have. And as you know, they treat it often like a line of credit where they pay it down and then they renew and they need more cash. In terms of potential outbreak of the coronavirus obviously the health and well-being of both our customers and our team members are paramount.

But among other things that we are doing is we're developing plans to allow our team members to work remotely to centralize certain servicing operations and to adjust our marketing efforts. We take this quite seriously and we will respond accordingly depending upon geography and severity. But we don't want to put our team members at risk. At the same token, we want to make sure that we service our customers the way they need to be serviced even if it's remotely if a particular area has been hit.

Unknown speaker

Great. Very helpful. Thank you.

Peter Knitzer -- President and Chief Executive Officer

Thank you.

Operator

[Operator instructions] The next question is from Bill Dezellem with Tieton Capital. Please go ahead.

Bill Dezellem -- Tieton Capital -- Analyst

Thank you. I have three unrelated questions, please. First of all, relative to the system outage, I'll just go ahead and pile on here. How long did that last?

Peter Knitzer -- President and Chief Executive Officer

It lasted seven -- approximately seven business days Bill.

Bill Dezellem -- Tieton Capital -- Analyst

Great. Thank you. And then secondarily, in the auto loan business, what is your longest dated maturity and would that equate to the very longest event if that business would exist?

Rob Beck -- Chief Financial Officer

Yeah. I mean, we have $10 million left in our portfolio, and that's decreasing $2 million roughly per month. But there's going to be a tail on this. So as far as we're concerned, by the end of this year, it will pretty much be gone.

So we don't see any issues with the rest of the liquidation of the portfolio.

Bill Dezellem -- Tieton Capital -- Analyst

And do you happen to know what the -- what this -- maturity date is on the furthest out loan?

Peter Knitzer -- President and Chief Executive Officer

I think it -- I don't know that, yeah.

Bill Dezellem -- Tieton Capital -- Analyst

No worries at all. And then lastly, would you talk about your ability to grow the loans per branch now that you've crossed that $3 million mark. I mean, I find it interesting that the older branches are still growing at 15%. But with that in mind, how are you thinking about this?

Peter Knitzer -- President and Chief Executive Officer

Well, a lot of the growth that we've generated is from our large loans, and that's increased our receivables per branch, and we're continuing our strategy of bringing customers in with a small loan and then migrating those or graduating those for better creditworthy customers and have demonstrated an ability to repay into larger loans. We think there's a lot of upside remaining in our existing branches to grow that well beyond $3 million. Having said that, we also believe that our de novo branches are a good source of receivable growth and revenue growth. As we've said before, a new branch breaks even relatively quickly under a year, and the payback is under two years.

Under CECL, that's going to change a little bit. Rob, do you have that off top of your head?

Rob Beck -- Chief Financial Officer

Yes. So I think from an overall payback or breakeven standpoint, typically, we would pay back in under a year and breakeven in under two years. And with CECL, it on average adds roughly six months to those metrics.

Peter Knitzer -- President and Chief Executive Officer

But again, it doesn't change the underlying cash flows of our business. And it's just -- it's a reserve issue that we're going to have to build as part of CECL.

Rob Beck -- Chief Financial Officer

Yes. I mean, the returns from a discounted cash flow basis, IRR basis are still very strong, even though you're accelerating the reserve upfront for CECL.

Bill Dezellem -- Tieton Capital -- Analyst

OK. Thank you both.

Rob Beck -- Chief Financial Officer

Thank you Bill.

Operator

The next question is from John Rowan with Janney. Please go ahead.

John Rowan -- Janney, Montgomery, Scott -- Analyst

Good afternoon guys.

Rob Beck -- Chief Financial Officer

Hi John.

John Rowan -- Janney, Montgomery, Scott -- Analyst

On CECL, I mean, you have a seasonal business, right? So let's just assume that allowance is relatively flat throughout the year. Does it create more earnings volatility within the year because of the paydown in the loan portfolio in 1Q?

Rob Beck -- Chief Financial Officer

Yeah. So in terms of liquidation impact, as you see that seasonal paydown, you will see a release on the reserve line that at year-end, we're at a 5.6% LLR under the incurred loss model. Obviously, we're not forecasting what our CECL number will be on March 31, but the one-time building at 10.8%. So as you liquidate some of the portfolio in the first quarter, you will be releasing CECL at that higher rate.

John Rowan -- Janney, Montgomery, Scott -- Analyst

OK. So I mean presumably then, as we change the models and build in seasonality, it's more seasonal, right? More earnings go toward the periods in which there is a payoff and less earnings for the year go to periods where there is loan building is how I will...

Peter Knitzer -- President and Chief Executive Officer

Yeah, exactly. So as you get a liquidation, you'll see a boost in earnings. And as you build the portfolio aggressively, you'll have that effectively a forward -- bringing forward of reserves versus the traditional model. But as I said earlier...

John Rowan -- Janney, Montgomery, Scott -- Analyst

OK. Then a few housekeeping items. Can you just repeat the guidance you gave for 2020 earnings growth and G&A expense?

Peter Knitzer -- President and Chief Executive Officer

So we haven't given earnings growth guidance thus far. And we don't give guidance on that. But Rob, you gave...

Rob Beck -- Chief Financial Officer

Well, we've given some guidance on the first quarter. And I think...

John Rowan -- Janney, Montgomery, Scott -- Analyst

I thought you said that there was going to be low single-digit growth rate. And then post 2021, you'd be back to double-digit growth.

Peter Knitzer -- President and Chief Executive Officer

So -- yes. So we did say there will be modest full-year EPS growth this year in 2020. And that's, as you would imagine, this first year of comparable period -- comp periods with CECL obviously reduces that percentage growth. And then we expect to return to the double-digit growth rates in 2021.

John Rowan -- Janney, Montgomery, Scott -- Analyst

OK. And then what was the G&A guidance?

Rob Beck -- Chief Financial Officer

We didn't give any G&A guidance for the full year. But for the first quarter, we said that it would be up $7.7 million to $7.9 million versus prior year.

John Rowan -- Janney, Montgomery, Scott -- Analyst

Versus the prior-year first quarter?

Peter Knitzer -- President and Chief Executive Officer

Yeah, yeah.

John Rowan -- Janney, Montgomery, Scott -- Analyst

OK. Thank you very much.

Peter Knitzer -- President and Chief Executive Officer

And just that includes the $800,000 impact of the outage as well as FAS 91 which is a little bit -- we can't defer as much with the liquidation during the first quarter.

John Rowan -- Janney, Montgomery, Scott -- Analyst

OK. Thank you.

Peter Knitzer -- President and Chief Executive Officer

Thank you.

Operator

This concludes the question-and-answer session. I would now like to turn the conference back over to Peter Knitzer for any closing remarks.

Peter Knitzer -- President and Chief Executive Officer

I just want to thank everybody for your interest today, and we look forward to speaking with you on our next earnings call, if not sooner. Thanks so much everybody. Bye now.

Operator

[Operator signoff]

Duration: 36 minutes

Call participants:

Garrett Edson -- ICR, Investor Relations

Peter Knitzer -- President and Chief Executive Officer

Rob Beck -- Chief Financial Officer

David Scharf -- JMP Securities -- Analyst

Steven Kwok -- KBW -- Analyst

Unknown speaker

Bill Dezellem -- Tieton Capital -- Analyst

John Rowan -- Janney, Montgomery, Scott -- Analyst

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