World Acceptance Corporation

Good morning and welcome to World Acceptance Corporation's second quarter fiscal 2027 earnings conference call. This call is being recorded. At this time, all participants have been placed in a listen-only mode. 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, statements other than those of historical fact, as well as those identified by words anticipate, estimate, intend, planned, expect, believe, may, will, and should, or any variation of the foregoing and similar expressions. are forward looking statements. Additional information regarding forward looking statements and any factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward looking statements. are included in the paragraph discussing forward-looking statements in today's earnings press release and in the risk factors section of the corporation's most recent Form 10-K for the fiscal year ended March 31, 2026 and subsequent reports filed with or furnished to the SEC from time to time. The corporation does not undertake any obligation to update any forward-looking statements it makes. At this time, it is my pleasure to turn the floor over to your host, John Calmes, President and Chief Executive Officer. Please go ahead.

Thank you. Good morning, and thank you for joining our fiscal 2027 second quarter earnings call. We are pleased with our second quarter results, and more importantly, we believe we are well positioned for the remainder of fiscal 2027. This quarter reflects steady progress against our core priorities. Growing the loan portfolio responsibly, improving credit quality, and maintaining a disciplined approach to expenses. We achieved adjusted earnings per share of $1.92 for the second quarter. Earnings benefited from a 3.2% increase in revenue as well as a 7.7% decrease in provision expense. Importantly, our credit quality continued to improve. We saw improvement in delinquency on both the front end and back end. Most notably, front end delinquency decreased from 20% to 18.9%. These trends reinforce our confidence in the health of the portfolio and the strength of our underwriting. On expenses, we saw improvement in our G&A expense, and we expect to maintain this disciplined approach to expenses going forward. At this time, Tobin Turner, our Chief Operating Officer, and I would like to open up to any questions you may have.

Thank you. We will now begin the question and answer session. To ask a question, you may press star, then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star and then 2. At this time, we will pause momentarily to assemble our roster. The first question will come from Kyle Joseph with Stevens. Please go ahead.