Financial Data and Key Metrics Changes - Total revenue increased by 8.7% despite average selling prices declining by 90 basis points [18] - Interest income rose by 5.1%, driven by overall receivables growth of $31 million year-over-year and a 50 basis point increase in the portfolio's weighted average interest rate [19] - Net charge-offs as a percentage of average finance receivables improved to 6.1% from 6.8% in the prior year quarter [26] - The allowance for credit losses as a percentage of finance receivables decreased to 24.31% from 25.74% a year ago [27] - SG&A expense increased by $2.9 million, or 6.7%, primarily due to acquisitions and higher stock compensation [31] Business Line Data and Key Metrics Changes - Sales volumes were up 13.2% for the quarter, attributed to improved execution and an earlier launch of the annual tax season promotion [21] - Gross margin improved to 35.7% from 34.2%, driven by vehicle procurement and disposal initiatives [23] - Collections increased by 5.2% over last year, with the monthly average total collected per active customer rising to $568 from $540 [29] Market Data and Key Metrics Changes - Delinquencies increased by 40 basis points to 3.7% at quarter end, influenced by winter weather impacts [30] - The application volume was up over 3.5%, indicating stronger demand from consumers [79] Company Strategy and Development Direction - The company is focused on improving and diversifying its balance sheet by adding new capital and lenders, as well as enhancing its securitization program [9] - A new Vice President of Capital Markets and Treasury was hired to support the growing ABS platform and capital market strategy [13] - The company aims to provide affordable financial solutions for vehicle ownership and exceptional service to customers under financial pressure [36] Management's Comments on Operating Environment and Future Outlook - The management highlighted the challenging environment for customers due to inflation, higher used car prices, and elevated interest rates [9] - The company is optimistic about its position heading into the strong fourth quarter and spring selling season, with increased inventory and refined marketing strategies [38] - Management remains cautious about the macro environment but believes that the company's foundational improvements will lead to future growth [40] Other Important Information - The company completed an extension and upsizing of its ABL facility to $350 million, maturing in March 2027 [10] - The sixth ABS transaction was completed in January, totaling $200 million and was more than 10 times oversubscribed [11] Q&A Session Summary Question: Update on unit recovery and underwriting trends - Management indicated that underwriting has been cautiously relaxed, with current volumes expected to be down 6% to 8% compared to fiscal year '23 [46][47] Question: Impact of weather on delinquencies - Management acknowledged the difficulty in isolating weather impacts but noted that delinquencies have trended back down quickly [49] Question: Timing and ramp-up of acquisitions - The company closed on a dealership in December and two larger dealerships in June, expecting to add over 5,000 accounts in the next 18 to 24 months [52] Question: Provisioning benefits and consumer stress - Management believes most benefits are from improved underwriting practices rather than an overall improvement in consumer conditions [58][59] Question: Update on application pool and tax season - Management reported a slower start to tax season but noted stronger demand and improved application volume, indicating positive consumer behavior [74][79]