Q2 2020 Elevate Credit Inc Earnings Call
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Good afternoon, and welcome to elevate credit second quarter 2020 earnings call Today's conference is being recorded.
This time like to turn the conference over to Mr., Daniel Ray Director of Public Affairs. Please go ahead.
Good afternoon extra joining us on elevate second quarter 2020, <unk> earnings conference call earlier today, we issued a press release with our second quarter results.
Copy of the releases are available on our website at <unk> Dot Com slash investors today's call is being webcast as accompanied by a slide presentation, which is also available on our web site. Please refer now to slide to 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 on our press release issued today, including impacts related to covert 19, and our most recent annual report on form 10-K, and other filings we make the SEC. Please note that all forward looking statements speak only as of the data this call and we disclaim any obligation to update.
These forward looking statements.
During our call today, we will 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 had been furnished to the FCC and are available on our website at elevate stuck on slash investors we didnt.
Not provided 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, our President and Chief Executive Officer, Jason Harvest, and and Chief Financial Officer, Chris Lewis I will now turn the call over to Jason.
Hello, everyone and thank you for joining our second quarter 2020 earnings conference call.
To begin today's call some high level observations since we last spoke.
As you'll recall during our first quarter call in April required that uncertainty and a specific focus on potential credit losses for our sector.
As we noted at the time would have reiterated sets we have been closely monitoring early credit quality indicators and implemented underwriting changes to address credit risk associated with our originations during the economic crisis created by the code knocking pandemic.
Consistent with our proactive approach credit quality has been very healthy further aided by federal stimulus actions and most encouraging but most encouragingly by responsible behavior consumers.
We acted quickly to establish three separate teams across the following critical responsibility as summarized on slide four.
First our team on our operations second a team for customers and third a team focused on credit and risk management.
For my overview, I'm going to focus primarily on customers and credit.
First with regards to our customers we believe it over the past four months our relationship with our brand customers has grown to closes in the history of the company.
What I mean by that is we have increased connectivity connectivity, both as it relates to service for existing customers and other underwriting for new customers.
As you know elevate AD market, leading customer system tools pre cobot, and we along with the bench, we support rolled out additional relief from the pandemic hit.
The number of customers of deferred payments has leveled off from the high that the start of the pandemic.
At quarter end, approximately 13% in a combined notes receivable principal had deferred payments.
For those coming off a payment deferral, we've seen positive payment performance for customers and this is very encouraging.
As a new customers they are still uncertainty regarding new loan originations, but not for the reasons many with bank from where we stand today given the significant government stimulus programs that have been provided the consumers we do not see the seasonal loan demand that we normally would see at this time of year to put it simply this past quarter seem very similar to what we experience every tax refunds, even during the first quarter.
Sure.
Our point this out to emphasize that our growth will be a function of customer loan demand more than risk aversion.
To be clear, we have added additional risk parameters and are very focused on bank level data as we consider new originations along with the banks, we support over the second half a year.
That said the bigger I noted our view is not credit worthiness, but has that customer loan demand, especially at the second wave a stimulus programs are currently under discussion amongst legislators.
Turning now to slide five let me give a quick high level update on credit.
The short story here is the credit quality has been relatively strong throughout covance today.
Chris will speak more in detail, but at a high level seamless support has helped and we have seen that show up with some encouraging behaviors from customers as well.
In general Nonprime borrowers have historically exhibited less credit credit worthiness volatility in downturns compare to prime borrowers based on what Weve observed and know about the visitor borrowers. The current environment is proving to be similar.
Two things to note on these charts first measurability and database business for Nonprime consumers only marginally deteriorated in March and to a lesser degrees in April and May or June we saw the air returned to pre code levels, which we view as a very positive side lease of the credit quality.
Second as we speak about we can loan demand in the resilience of Nonprime consumers, we see a decrease in a number of response that have more depth and savings.
This trend only seems to continue in June as you can see here nonprime consumers are spending cash widely and paying down debt, which again gives a lot of comfort on the credit quality of existing book.
So before I review the quarter's results, let me try to summarize our takeaways here.
First credit quality remains very strong as a result, elevate drove growth high profitability for the quarter, which will touch on an amendment.
But you can certainly our business is being driven more by demand softness and credit quality, which again would probably not the base case assumption our investors have at the onset of Cowen.
We'll speak to how we're managing the business against the backdrop of later in the call, but in summary, elevate is well positioned to grow when the market permits and the generating strong profits a stable credit in the meantime.
With that let's turn to slide six of our presentation.
Elbit reported a strong quarter from a profitability perspective, but clearly our revenue trajectory for 2020 will be lower the reasons I just discussed.
Revenue in the quarter told at $118 million, which represents a decrease of 22% compared to second quarter last year.
Over the course of the first half the year, we experienced normal seasonal paydown of loans as borrowers utilize our tax refunds.
As mentioned, we also had the effect of additional seamless capital in the system, which significantly cut for loan demand we would normally seen.
As you can see from our press release loan originations to new customers for the second quarter totaled just over 2800 loans across all three U.S. products, which is now 94% from the 40 more loans, we along with the banks we support originated over the same period last year as a result.
Environmental receivable principal at the quarter end stood at $413.7 million, which is down 25% compared to the same point last year.
Credit performance of existing book of loans remain strong today and drove very solid profitability.
Profit growth in the quarter was largely driven by low marketing expense. In addition to the decrease in net charge offs and total loan provision expense.
Additionally, we implemented or operating expense reduction plan given the decrease in revenues, we will touch on these actions in a moment, but the end result drove adjusted earnings of $17 million were 40 cents per share, which is more than double last year's second quarter.
Similarly, adjusted EBITDA increased 31% to 45 million, which represent the margin of 38% up over 50 points from a year ago.
Clearly our business model benefits on the bottom line from a lack of provisioning for new loan originations, but also what are equal weight through diligent work and hard decisions made by our team over the last 90 days.
We note again that are fully online platform and ability to quickly shift is a key strength elevate in that regard.
With that let's turn to slide seven and it's got the number the actions taken over the quarter.
First as announced on June 29, we made it difficult decision to cease operations, the United Kingdom and plays our UK operations in administration.
As we noted in a voiced over the past year certain regulatory environment ultimately made operating the business untenable.
As you'll recall, we made the decision to slower Sony originations last year, given the lack of clarity regarding how regulators would manage customer affordability compliance.
That combined with the impact to cope with resulted in a very low loan portfolio to cannot sustain profitable operations going forward.
Is it, particularly frustrating outcome for UK borrowers given the lack responsible responsible credit options that will be available in the UK market.
In terms of the financial impact in closing the UK operations, we recognize a $7.5 million after tax charge in discontinued operations in the second quarter 2020.
With that said, let's turn to one of the most difficult decisions, we've ever made which resulted from cowen not team.
As I posted in my letter on July eight we took action to reduce our newest workforce and lot of our expectation of lower revenues over the remainder of 2020.
Specifically elevate reduced head count by 17% eliminate all bonuses for all employees and reduce executive salaries in board compensation.
Additionally, the company has renegotiated various vendor contracts all of the aim to rightsize our expense base for the environment and protect our returns.
Chris will expand on the financial impact of these actions later in the call by locked to state clearly that we were very embedded to the hard work of all employees and while these decisions are always difficult. We firmly believe that with the right wants to ensure elevates sizable opportunity to grow and move forward.
Now, let me give some high level comments on a continuing suspension of earning guidance for 2020.
As you saw in a press release the uncertainty of the current loan demand environment makes forecasting our financial results challenging as a result, we continue to spend our usual guidance.
As we noted in our release, we are working diligently diligently with the banks, we support to determine timing and parameters to originate new loans and Dakota knocking environment.
The banks, who support from along with our core offerings are committed to ensuring ability to repay as a parameter to reenter the market skill.
That said the environment remains highly opaque mainly due to the loan demand dynamics I mentioned earlier.
However, we believe elevate is poised to lean into growth when demand dictates given some of the early marketing campaign test we have been running.
Similarly, while we have better visibility of the credit performance of existing borrowers. We note that the second half a 2020 holds uncertainty as well depending on the trajectory of endemic and whether there are additional quarantine restrictions put in place.
The touch briefly on the potential of a second stimulus, we anticipate loan demand staying lower for the second half a 2020 in that scenario, while credit quality trends would approve grain unchanged with that let me turn the call over to Chris to discuss financials in more detail.
Thanks, Jason and good afternoon, everybody is Jason highlighted looking back over the past 90 days, our credit quality has done much better than expected. The large amount of stimulus provided by the government along with prudent consumer spending behaviors that had the equivalent of a second CAC seasonality period for us, resulting in lower loan balances in revenue.
The higher profit margins.
Turning to slide eight combined loans receivable principal totaled 414 million at June Thirtyth, 2020 down 25% from a year ago.
These amounts exclude the UK sunny loan balances, which are now part of discontinued operations.
At the product level rise loan balances totaled 241 million at the end of the second quarter 2020 down 65 million or 21% from 306 million a year ago, Our rights, California loan portfolio accounted for over a third of that decreases the portfolio in that state dropped to 28 million at the ended the second quarter of 2020 a deal.
Increased from 50 million a year ago, we expect the majority of that loan portfolio to continue to pay down over the second half of 2020.
Elastic loan balances at June Thirtyth, 2020 totaled 165 million down roughly $79 million from a year ago elastic as the product most impacted by cobot as customer multi drug activity or line utilization continues to be surprisingly low.
Idle customers those with no active balance have increased from 24% pretended to approximately 37% to June Thirtyth 2020.
Staying on this slide while revenue for the first half of 2020 was down only 10% from the first half of 2019 Q2, 2020 revenue totaled 118 million down 22% from the second quarter 2019. The decline in revenue was evenly split between rise on elastic for the rise product revenue decreased 15.
Million or 17% in the second quarter of 2020 versus year ago, a majority of the drop in revenue for rise related to a decline in the effective PR the rise product, which declined from 126% in the second quarter, 2019% to 110% in the second quarter 2020.
The MTR was impacted by both the lack of new customer loans, which typically have a higher PR than more seasoned customers as well as the impact of adjusting the effective day PR for customers that have suffered payments on their loan balances for elastic most of the decline in revenue resulted from the decrease in loan balances I just discussed.
Looking at the bottom of this slide both adjusted EBITDA and adjusted earnings are up on a year over year basis, we'll topline revenue was down year over year. Our gross profit in operating income for the second quarter, 2020 increased 6 million and $10 million, respectively from year ago.
Despite initial concerns related to cobot credit quality is remains solid resulting in much lower net charge offs in total loan loss provision versus the prior year quarter.
Additionally, we recently implemented an operating cost reduction plan, which resulted in operating expenses for the second quarter of 2020 to be $4 million lower than the second quarter of 2019.
Combined this resulted in adjusted EBITDA totaling 45 million for the second quarter 2020 up 31% from the prior year quarter.
Adjusted earnings for the second quarter, 2020 totaled $17 million or 40 cents per fully diluted share compared to 8 million or 19 cents per fully diluted share a year ago.
Net income for Q2 2020, including the loss from UK discontinued operations totaled $9 million or 20 cents per fully diluted share compared to $6 million or 13 cents per fully diluted share a year ago.
Adjusted earnings for the first half of 2020 totaled 28 million exceeding adjusted earnings of 26 million for all 2019.
Turning to slide nine the cumulative loss rate as a percentage of loan originations for the 2019 vintage continues to be the lowest ever with the new generation of risk scores and strategies that were rolled out in 2019, performing much better than the 2018 vintage which remained relatively flat with the 2017 vintage.
We have not seen cobot materially impact any of these vintages so far this year.
On this slide we also showed a customer acquisition cost there were minimal new customers loans and marketing expense in the second quarter of 2020.
When customer loan demand picks up again in future quarters, we expect our cap to continue to trend between 250 in $300.
Slide 10 shows the adjusted EBITDA margin, which was 38% for the second quarter of 2020 up from 23% for Q2 2019.
Not reflected in this margin is the decrease in the cost of funds for the debt facilities. As you recall, we amended the debt facilities over a year ago, but the full impact was not reflected in quarterly results until the third quarter of 2019 interest expense as a percentage of revenue drop from 11% in the second quarter of 2019% to 10% in the second quarter.
2020, and the overall effective cost of funds for the second quarter of 2020 was 10%.
As Jason previously mentioned as we disclosed in an 8-K filing our UK operations was placed in New administration on June 29, 2020, which is the UK form of bankruptcy.
All the current year in prior year UK numbers in our press release are now disclosed as discontinued operations.
At July 30, Onest 2020, the remaining UK debt is down to approximately 5 million British pounds, and we believe the remaining UK assets to be liquidated will cover the remaining debt.
We do not expect to receive any remaining UK cash flows is that we'll be reserve for the unsecured creditors and affordability claims were able to recorded deferred tax benefit totaling approximately $24 million related to the loss in our investment in the UK, we do not expect to collect on this until 2022 at the earliest.
While we don't have a slide let me spend a minute discussing the loan loss reserve methodology and how the reserve is determined for customers that are using payment flexibility tools to Jason discussed such as deferring loan payments.
We did not have to adopt Cecil at the beginning of the year. So the loan loss reserve methodology has remained unchanged in the first half of 2020 watts factors are calculated by product and by delinquency status and considers historical data such as the number of successful payments of customers made.
For customers that have deferred payments the loans do not continue to age is past do other payment is in deferral status, but this bucket of loan balances is monitored separately to determine if additional loan loss reserves are needed. In addition to reserves generated under the normal methodology.
Additionally, the effective hbr for rise installment loans is lowered to account for the longer duration of the loans and interest continues to accrued during the deferral at that lower effective PR.
For elastic lines of credit no fees accrued during that to payment deferral period at June Thirtyth, 2020 loan balances with deferred payments totaled $51 million or 13% of combine loans receivable principle.
Now, let me discuss the remainder of fiscal year 2020, while we're not providing revenue adjusted EBITDA or net income guidance for the remainder of this year due to uncertainty caused by coded and the next round of stimulus. We can provide some high level thoughts the biggest uncertainty from our perspective is when consumer loan demand picks up again.
Impacts forecasted revenue loan loss provisioning and marketing expense for the year.
Assuming this latest round of stimulus impacts us consumers in a manner similar to last quarter customer loan originations loss provisioning and marketing expense would be down materially in the third quarter of 2020 compared to a year ago.
Loan originations would probably be at 50% of prior year levels at best in the fourth quarter of 2020.
As a result loan balances and revenue in the second half of 2020 would be down versus year ago.
We expect loss rates in the second half of 2020 to continue to trend around 20% of historical loan originations are roughly half of quarterly revenue.
Operating expense levels for Q3 in Q4, 2020 will be down approximately 20% from the first quarter 2020 due to the operating expense reduction plan that we recently implemented which included a reduction in us employees of approximately 17%.
Turning to liquidity and capital one of the positives of our business model is the short term nature of the loans Q1 in the early part of Q2 every year as the seasonal slow period for loan growth due to loan paydowns, resulting from customer tax refunds.
Cobot did not impact our normal tax seasonality and during the first half of 2020 $88 million. The VPC debt was repaid 104 million, including the discontinued UK operations on June Thirtyth 2020, there was over 160 million of cash on our balance sheet.
Most of this cash supports the DTC debt outstanding that totaled 440 million at the end of the second quarter of 2020.
We chose not to prepay early 18 million of sub debt that matures in the first quarter 2021.
All other debt facilities have a maturity of January 2024.
Our relationship with the primary lender victory Park capital remains strong we have worked with them for 10 years going back to our predecessor company.
Giving the current economic environment loan originations to customers is minimal so there's no need for additional debt for the next few quarters all debt facilities weren't compliance with their covenants at June Thirtyth 2020.
Lastly, I would like to briefly discuss the common stock repurchase plan authorized by our board in February of 2020.
We believe this use of capital at the current stock valuation is compelling from a return on capital perspective.
During the first half of 2020, we repurchased $8 million of common shares under this repurchase program in accordance with our existing Tenbfive. One plan, we have $17 million and remaining availability under this plan, which we anticipate using in the second half of 2000 27 million in Q3 and 10 million in Q4.
With that let me turn the call back over to Jason.
Thank you again to all of our employees investors and analysts for listening today.
As I said in the past elevate was purpose built for lead the market responsible products for consumers with limited access to enrich traditional banks and credit card offerings as.
As you know that needed only more pronounced and Tom distress as traditional channels quotes off even further for lower credit borrowers on that point I'll wrap up by saying elevate remains very well positioned to help this new growing population of Americans reach a good today and better tomorrow.
And with that we'll open up for questions.
Thank you if you'd like to ask a question. Please stand by pressing star want to new telephone keypad.
Good evening Speakerphone, please make sure that you're being function is turned off that leaves signal to reach our equipment within that a star one could like Tom's question.
We'll take our first question from Maciora with Credit Suisse. Please go ahead.
Great.
I guess.
Good day.
Yeah, Chris you had talked a little bit about the level of originations that you're expecting in the third fourth quarters.
Just wondering if you kind of flush that out a little bit just go through like what what it would be I thought I occurred.
I thought I heard case and say that.
But your point partners, we're going to work on the ability to repay I assume that but something that we've always been doing so.
Maybe just talk a little bit about the significance of that.
Steve.
Yes. Most of this is Jason ill take a first added this and locus follow up off today.
Yes, so we're at right now with our core portfolios and also the before portfolios that are banks support is that we're looking at additional credit information that we can help underlie consumers from both.
Broad perspective, and also from a cash flow perspective, and we rolled out models in 2019, a big component that was bank transaction data, so being able to the cash inflows and outflows out of consumer bank accounts and I think that provides.
In the banks to support a lot of great insights on how to underwrite consumers and what their current position is and how those balances are trending.
So as we go forward to wrap up 2021 to 2021, I think youll based on traditional bureaus have a little bit stagnant data because of the way people reporting back deferred balances I think casual information is going to be the most critical which I think thats going to be a key component for our underwriting into the bank, who support and we will.
To put out both for our portfolio of in the banks.
Some other marketing initiatives it won't be back at the levels. We did back to Q3 Q4 last year, but we're going to make sure. We had some six in the fire to see when the demand comes back measure that performance and be very disciplined on how we believe in to that demand, but when the demand is there in the performance is ride I think we've shown in the past we have the capability.
You too.
New board and serve Nonprime consumable responsible loan and this is Chris as we look out and try and kind of forecast into the second half of the year, It's certainly a little bit difficult until we know the level of stimulus that the government might put out with the second round, but in a generally I.
Backed loan balances to continue to decline during Q3, I mean, I don't think we've hit a trough yet although I think the decline in Q3 will probably be much less dramatic than what we saw from the end of Q1 to the into Q2.
And then what I noted in my high level thoughts is that I think Jason and I are hopeful that we might be able to see an uptick in originations in Q4 kind of the normal Q4 seasonality, but right now if I was guessing you would probably in the best case, probably you origination volume will be about half of what it was in Q.
For a year ago is kind of how I'm thinking about it right now so but if it is half.
Volume a year ago in Q4, we would expect to see loan balances start to increase in Q4 versus the end of Q3.
Got it since that's very helpful and crystal to comment that you've made about about.
It was about credit losses, or physician that said would be half of revenue and get that that was the.
It would be charge offs as a percentage of half of them on revenue, which is kind of our the midpoint of our typical metric at 45% to 55%.
Realistically will probably turn the little bit lower but I think 50%. So a good conservative Mark and then at losses as a percentage of originations would be roughly 20% kind of inline with what were historically seeing on our loss curves that we disclose.
Right and in that scenario in the third quarter, where you would be having a decline in balances and credit performing like if it were to perform like it is now would we expect the reserve to come down or because just yes, the balances will be lower yes, okay perfect. Thanks, Yeah.
Thank you and once again at Starwood, if you'd like to ask a question.
Well hear next from Eric Wasserstrom TBS.
Right.
As much.
No.
On.
I'm now on that last point Chris.
Kind of walk us through that sort of things a little bit, but the key wins and.
The loan balances from sounds like obviously below.
But I will point.
Do you know movies.
Liberalization or maybe even though.
Section.
Yeah, I mean, what we've seen through July is the loan balances continued to decline at the end of July versus where we ended June thirtyth, but the rate was significantly lower.
I think right now what we're seeing is to be specific I think both portfolios paid down roughly $10 million.
On a net basis, so loan balances dropped about 20 million July 30, Onest versus June Thirtyth, that's a much lower rate of decline than what we saw in the second quarter Khuzami originations are picking up their nowhere near what they were in Q3, a year ago, both but we are starting to see some customer loan demand come back.
But I would expect that right now to probably continue because right now this would be in the Q3 period. Our typical lasts the historically is when we would see the last kind of bit of loan growth would be here in early August with the typical back to school seasonality and even that's somewhat muted this year with so many.
Kids, probably staying home rather than going back in person. So I would expect loan balances to continue to decline through the end of the third quarter, but then in the fourth quarter I think Jason the nai and might be a little bit optimistic, but probably in the best case, we would assume that.
Origination volume would be about half of what it was in the fourth quarter, a year ago, but even at that lower rate. It would still be that would be the inflection point, where probably beginning in October you'd see loan balances start to increase. So therefore, hopefully Q3 would be the trough for revenue and loan balances and then.
Q4, you would see an uptick in revenue and in loan balances through the end of the year.
I hope that dodging the question.
Yeah, no absolutely very clearly within Q.
I know you've had to make them some very difficult choices around.
We sizing your cost structure.
What.
What level of of loan balances contemplated in your current run rate expense.
What what level of loan balances are low are kind of correlated in our op expense I really view it probably more different way I've I've always depend on auto it's kind of correlated now that our APC ours are roughly 100% on average across the portfolio, but typically.
Jason and I'd like to kind of measure the efficiency ratio, which would be opex as a percentage of revenue in a good scale period with good revenue growth, we would be typically targeting a 20% efficiency ratio clearly in this type of environment. Your op expense as a percentage of ratios going to run well north of that probably in.
To the high Twentys, maybe even low 30% range as a percentage of revenue, but our margins are able our profit margins are able to maintain kind of being stable or increasing because your marketing expense as a percentage of revenue, which is roughly 10% when we're in growth mode.
Is much lower.
As well as the loss provision in much lower so kind of roundabout way of saying that I would expect our opex levels to probably right now what we've kind of proactively tried to forecast out is keeping our opex somewhere in the high 20 to low 30% range and therefore, our profit margins won't be squeeze that mark shippers.
Revenues continued to decline in Q3.
Got it right.
From from.
In terms of.
As into the cadence as expected losses.
How how does the loss close look too.
As you may be some of the milestones.
Around the business in the federal stimulus.
And with unemployment benefits in that kind of thing was the lowest smooth curve or does it take more the shipments will have like a step function.
I think it's going to continue to be a smooth curve I mean, what we're seeing so far.
Even at even if there was no second round the stimulus I mean, there's certainly some level of exposure. Both let me quantify a couple of things that arent in the press release I think at the end of June we disclose that our deferred loan balances or customers that had the head with loan balances the deferred payments it was roughly 55.
Point 7 million or about 12.5% of the portfolio at the end of July that a declined to just under 43 million.
Or roughly I think about 11% of outstanding. So you can see that the the level of deferred is definitely decreasing the abatement.
And we continue to see even through the end of July and what we've seen the last couple of months is the customers that due to per payments typically have a roughly about a 70% success rate.
Drilling, saying about 30% that are rolling and eventually potentially going delinquent and cure rates on those that role or go delinquent are typically standards. So we're not seeing a large uptick in losses. In fact, there's the potential to Q3 loss rates could be in a much lower than what we've typically seen and I think the one thing that Jason on iron.
Most excited about is that these tools that we rolled out I mean, we've been working on him really for the course of the past year, we didnt necessarily warm out in response to coded and these are tools payment flexibility tools that are going to continue to exist postcode. Because we think it's the right thing from a customer standpoint to be able to offer our customer.
Moves into the flexibility to defer a payment or to enter into a payment plan etcetera. So I think longer term Jason higher excited about the potential does these tools can have in potentially helping lower those loss curves and can further yeah. Eric. This is Jason is to expand on that just a little bit of Chris was saying.
Yes, they will begin to co without I think we had some of the most flexible products either but we offer to our banks.
To support offer for consumers to navigate through another financial risk at the might come along while they will.
Using more of the products and going through those were able to expand along pretty quickly I think the team did a great job of building that additional flexibility going into the products and programs and I think we've been able to match all the way for consumers a habit flexibility based on the news that they're looking for to see positive outcomes and you haven't seen consumer.
Yes.
Overall use these lease program was a pharma programs as Chris said, what's been about 12% to 15%.
You are seeing consumers also be very successful as the use of programs coming out of normal getting back on track, which is exactly what we won soon do through.
The last 90 120 days, but it's Chris is also saying I think it's it's also something that we see is going to be a key.
The key feature within the programs that we offer on a go forward basis. So the consumers have that flexibility that they need additional time to pay that there for them to use and take advantage over to more additional costs. So I think it's actually a really all silver lining looks a lot on now do that would continue to continue to provide additional flexibility to the number of uncertain.
Thanks for taking my question.
Thank you and that does conclude today's question answer session.
The conference back over to management for any additional for closing remarks.
Sure.
Just want to say thanks to everyone on the call today, both investors analysts board members employers appreciate all the support for these are profitable at times.
Listen are extremely happy with the way the teams performed over the last 920 days.
And serving the Nonprime consumer we're excited about what we can do on a go forward basis and be prepared.
To serve the consumer on a go forward basis, although responsible as I think we're set up a great success as we look into the last half of the 2021 to 2021.
And I look forward to talking over by about the Q3 results in two months. So thanks, so much hope everyone safe and healthy and appreciate the support ticket.
Thank you and that does conclude today's conference. Thank you for your participation you may now disconnect.
No.
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And.