Provident Financial (NasdaqGS:PROV) FY 2025 Annual General Meeting November 20, 2025 02:00 PM ET Company ParticipantsNone - OperatorPeter Fan - SecretaryNone - Company RepresentativeDonavon Ternes - President and CEOConference Call ParticipantsNone - AnalystNoneHello and welcome to the Annual Meeting of shareholders of Provident Financial Holdings. Please note that today's meeting is being recorded. During the meeting, we will have a question-and-answer session. Shareholders and proxy holders can submit que ...

Financial Data and Key Metrics Changes - The company reported a total of 6,503,511 shares of common stock outstanding, with 5,736,174 shares present at the meeting, representing 88.20% of the total votes eligible to be cast [12] - The election results showed that Debbie H. Guthrie received 3,215,117 votes (60.67%), Kathy M. MacDougall received 3,217,063 votes (60.70%), and Matthew E. Webb received 3,216,572 votes (60.69%) [13] - The advisory vote on executive compensation received 2,796,098 votes in favor (52.75%) [14] Business Line Data and Key Metrics Changes - No specific data on business lines was provided in the meeting records Market Data and Key Metrics Changes - No specific market data was discussed in the meeting records Company Strategy and Development Direction and Industry Competition - The company appointed Deloitte & Touche, LLP as independent auditors for the fiscal year ending June 30, 2026, indicating a focus on maintaining strong governance and compliance [11] Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during the meeting Other Important Information - The meeting confirmed that a quorum was present, allowing for the election of directors and other business to proceed [16] - The results of the votes will be verified and disclosed in a Form 8-K filing with the Securities and Exchange Commission [15] Q&A Session Summary - No questions were raised during the Q&A session, and the meeting proceeded without any inquiries [12]

Financial Data and Key Metrics Changes - The preliminary voting results indicated that each of the eight nominees for director received at least 93% of the votes cast, confirming their election [12] - At least 94% of the voting power approved the compensation of named executive officers disclosed in the proxy statement [13] - The amended and restated 2005 employee stock purchase plan received at least 99% approval from the voting power [13] - The appointment of KPMG as the independent registered public accounting firm for fiscal 2026 was ratified with at least 95% approval [14] Business Line Data and Key Metrics Changes - No specific business line data or key metrics were discussed during the meeting Market Data and Key Metrics Changes - No specific market data or key metrics were discussed during the meeting Company Strategy and Development Direction and Industry Competition - The meeting did not provide detailed insights into the company's strategy or competitive landscape Management's Comments on Operating Environment and Future Outlook - Management indicated that forward-looking statements may be made in responses, and stockholders were advised to refer to risk factors associated with the business in SEC filings [15] Other Important Information - The meeting was conducted in a virtual-only format to enhance stockholder access [1] - A quorum was confirmed with over 302 million votes, representing more than 86% of the voting power [7] Q&A Session Summary Question: No questions were submitted regarding the proposals - No questions were submitted during the proposal discussion [11] Question: General Q&A session - No questions were submitted during the general Q&A session [16]

Financial Data and Key Metrics Changes - Copa Holdings achieved a net profit of $173 million, or $4.20 per share, representing an 18.7% increase year-over-year [10] - Operating income reached $212 million, with an operating margin of 23.2%, up 2.9 percentage points year-over-year [10] - Unit cost (CASM) decreased by 2.7% to $0.085, while CASM excluding fuel decreased by 0.8% to $0.056 [10][11] - Cash and investments totaled $1.3 billion, representing 38% of the last 12-month revenues [11] Business Line Data and Key Metrics Changes - Capacity in Available Seat Miles (ASMs) increased by 5.8% compared to Q3 2024 [5] - Load factor increased by 1.8 percentage points to 88% [5] - Passenger yields decreased by 2.6% year-over-year [5] Market Data and Key Metrics Changes - Copa Airlines maintained an on-time performance of 89.7% and a flight completion factor of 99.8% [6] - The company started flights to new destinations in Argentina and plans to expand services to Mexico and the Dominican Republic [7] Company Strategy and Development Direction - The company focuses on maintaining a strong balance sheet, low unit costs, and a passenger-friendly product [9] - Future capacity growth is projected at approximately 8% for 2025, with expectations of 11%-13% for 2026 [12] - The company plans to add eight more 737 MAX 8s in 2026, ending the year with a total fleet of 132 aircraft [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future performance driven by healthy demand in the region and a strong business model [9] - The company noted that demand remains healthy despite macroeconomic volatility in Latin America [44] - Management highlighted that the competitive environment remains challenging but emphasized their competitive advantages [55] Other Important Information - The company will make its fourth dividend payment of $1.61 per share on December 15th [11] - An investor day is scheduled for December 11th at the New York Stock Exchange [13] Q&A Session Summary Question: Update on loyalty program and credit card renewal - Management confirmed a renewal of the Visa agreement and noted over 30% growth year-over-year in the loyalty program [16][17] Question: Clarification on growth projections for 2025 - Management indicated that half of the projected growth comes from backloaded aircraft, with the remainder from adding frequencies and new destinations [18] Question: Insights on unit revenue trends with increased growth - Management acknowledged that most growth comes from high-demand routes, suggesting less impact on unit revenues [25] Question: Competitive landscape and potential IPOs in the region - Management stated that competition has been a constant factor and emphasized their focus on maintaining competitive advantages [55][56] Question: Update on hedging policy - Management confirmed no changes to the hedging strategy, stating satisfaction with the current approach [72] Question: Densification plan status - Management reported that half of the planned densification has been completed, with the remainder expected in 2026 [77]

Financial Data and Key Metrics Changes - Total revenues increased by 36.7% year-over-year, reaching MXN 20.3 billion [4][5] - Same-store sales grew by 17.9%, driven by improvements in the value proposition [4][5] - EBITDA reported a loss of MXN 404 million, but excluding non-cash share-based payments, EBITDA increased by 43.6% to a positive MXN 1.2 billion [4][5] Business Line Data and Key Metrics Changes - The company opened 131 net new stores in the quarter, totaling 3,162 stores, with 390 stores opened in the first nine months of 2025 compared to 346 in the same period last year [4][5] - Cash flow generated by operating activities reached MXN 3 billion, a 30% increase year-on-year [5] Market Data and Key Metrics Changes - The gap versus ANTAD continues to increase, now almost 17 percentage points [6] - The company is one of the fastest-growing retailers globally, with significant room for expansion in Mexico, targeting a total of 14,000 stores [10] Company Strategy and Development Direction - The company focuses on continuous improvement of its value proposition, which is driving same-store sales growth [10] - There is a strong emphasis on talent investment as a key success factor, with a high talent density within the team [11] - The company plans to continue expanding its store network and product offerings while maintaining operational efficiency [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong sales growth, driven by product improvements and a robust pipeline [45] - The company anticipates that margins will improve over time due to better purchasing terms and logistics efficiency [14][15] - Management noted that the competitive landscape remains strong but healthy, with no significant changes in competition [37] Other Important Information - The company has a net cash position of approximately MXN 1.1 billion and $151 million in short-term deposits [5] - Share-based compensation has been a key driver of attracting talent and aligning interests with shareholders [11] Q&A Session Summary Question: Comments on gross margin and market share - Management indicated that margins will improve as purchasing costs decrease and logistics efficiency increases, with a focus on enhancing the value proposition [14][15] Question: Maturation of new store vintages - New store vintages are maturing faster than expected, leading to improved returns on invested capital [23][24] Question: Sales expenses and regional performance - Management expects more favorable comparisons for sales expenses in the next quarter and noted consistent performance across regions [29][32] Question: Product development and customer journey - The customer journey typically starts with basic goods, leading to increased basket sizes as customers try new products [57][60] Question: Interest from larger players - Management stated there has been no significant interest from larger national or international players regarding a potential acquisition [86]

Financial Data and Key Metrics Changes - Total revenues increased by 36.7% year-over-year, reaching MXN 20.3 billion [4][5] - Same-store sales grew by 17.9% [4][5] - Cash flow generated by operating activities reached MXN 3 billion, a 30% increase year-on-year [5] - EBITDA reported a loss of MXN 404 million, but excluding non-cash share-based payments, EBITDA increased by 43.6% to a positive MXN 1.2 billion [4][5][8] Business Line Data and Key Metrics Changes - The company opened 131 net new stores in the quarter, totaling 3,162 stores, and opened two distribution centers, bringing the total to 18 [4] - In the first nine months of 2025, 390 stores were opened compared to 346 in the same period last year [5] Market Data and Key Metrics Changes - The gap in same-store sales growth compared to Antad has increased to almost 17 percentage points [6] Company Strategy and Development Direction - The company aims to expand to no less than 14,000 stores in Mexico, indicating significant growth potential [10] - Continuous improvement in product quality and pricing is driving same-store sales growth [10] - The company is focused on talent investment as a key success factor [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong sales growth, driven by product improvements and market penetration [45] - The company is optimistic about future product innovations and their impact on sales [50] Other Important Information - The company has a robust plan for talent development to support future expansion [72] - Management noted that they do not anticipate any significant changes in the competitive landscape as they expand [37] Q&A Session Summary Question: Comments on gross margin and market share - Management indicated that as the company scales, commercial margins will improve due to lower purchasing costs and increased logistics efficiency [14][15] Question: Maturation of new store vintages - New store vintages are maturing faster than expected, leading to improved returns on invested capital [23][24] Question: Sales expenses and regional performance - Management expects more favorable comparisons on sales expenses in the next quarter and noted consistent performance across regions [28][30][32] Question: Product development and customer journey - The customer journey typically starts with basic goods, leading to increased basket sizes over time as customers gain trust in the brand [57][59] Question: Interest from larger players - Management stated there has been no significant interest from larger national or international players regarding a potential acquisition [86]

Financial Data and Key Metrics Changes - Copa Holdings achieved a net profit of $173 million, or $4.20 per share, representing an 18.7% increase year-over-year [10] - Operating income reached $212 million, with an operating margin of 23.2%, up 2.9 percentage points year-over-year [10] - Unit revenues (RASM) increased by 1% to 11.1 cents, while unit costs (CASM) decreased by 2.7% to 8.5 cents [6][10] Business Line Data and Key Metrics Changes - Capacity in Available Seat Miles (ASMs) increased by 5.8% compared to Q3 2024, with a load factor of 88%, up 1.8 percentage points [5] - Passenger yields decreased by 2.6% year-over-year [5] - The operational performance included an on-time performance of 89.7% and a flight completion factor of 99.8% [6] Market Data and Key Metrics Changes - The company noted a healthy demand environment in Latin America, with load factors holding up despite increased capacity [45] - Brazil's market is recovering slowly, with improved load factors and pricing, while Argentina's market remains strong but competitive due to increased capacity [45][70] Company Strategy and Development Direction - The company plans to strengthen its position as a connecting hub in the Americas, with new routes and fleet expansion [7][9] - Copa Holdings anticipates adding eight more 737 MAX 8s in 2026, ending the year with a total projected fleet of 132 aircraft [8] - The focus remains on maintaining low unit costs and delivering strong financial results through disciplined execution [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future performance, reaffirming guidance for an operating margin between 22%-23% for 2025 [12] - The company highlighted that demand remains healthy, with expectations for continued growth in the coming years [49][50] - Management acknowledged potential volatility in fuel prices but maintained a positive outlook on margins and profitability [32][72] Other Important Information - The company will make its fourth dividend payment of $1.61 per share on December 15th [11] - An investor day is scheduled for December 11th at the New York Stock Exchange [13] Q&A Session Summary Question: Could you talk about the timing and nature of the Copa and credit card renewal? - The renewal of the Visa agreement occurred in Q3, contributing to a 30% year-over-year growth in the loyalty program [16][17] Question: What are the growth projections for next year? - The projected growth of 11%-13% in ASMs is primarily driven by the full-year effect of backloaded aircraft and increased frequencies to current destinations [18] Question: How do you view unit revenue trends with the expected growth? - Management indicated that the impact on unit revenues should be less than expected due to adding frequencies in high-demand routes [25] Question: What is the current competitive environment in the region? - The company has faced increased competition, particularly in Argentina and Brazil, but remains confident in its competitive advantages [55][70] Question: How does the company plan to address potential fuel price volatility? - Management does not plan to change its hedging strategy, as it has been effective in the past [72] Question: Can you provide an update on the densification plan? - Approximately half of the planned densification has been completed, with further plans for 2026 [77] Question: How much conservatism is built into your guidance? - Management is comfortable with the narrowed guidance for operating margins between 22%-23% [82]

Financial Data and Key Metrics Changes - For calendar Q3, the company reported GAAP net income of $0.11 per share and net investment income of $0.23 per share, with a weighted average GAAP yield for the CLO portfolio at 15.5% [9][10] - The NAV as of September 30th was $5.99 per share, with cash and cash equivalents totaling $20.1 million, resulting in a NAV-based total return for the quarter of 9.6% annualized [13][21] Business Line Data and Key Metrics Changes - The CLO portfolio increased by 20% to $380 million, with new purchases totaling $116 million, of which 62% was in CLO debt and 38% in CLO equity [11][12] - CLO equity represented 51% of total CLO holdings, down from 53% at the beginning of the quarter, while European CLO investments accounted for 14%, roughly unchanged quarter-over-quarter [11][12] Market Data and Key Metrics Changes - The credit markets rallied during the third calendar quarter, supported by a dovish shift from the Federal Reserve, leading to tightened corporate credit and CLO spreads [4][5] - In the U.S. leveraged loan market, lower quality CCC-rated loans fell several points amid default concerns, while single B-rated loans advanced due to sustained CLO demand [10] Company Strategy and Development Direction - The company is focusing on increasing its portfolio allocation to mezzanine debt to gain more attractive yields while reducing exposure to new issue equity [6][7] - The strategy emphasizes active trading to capitalize on mispricings and manage risk effectively, with a preference for secondary market acquisitions over new issues [6][16] Management's Comments on Operating Environment and Future Outlook - Management noted that volatility and credit dispersion remain defining features of the corporate credit markets, with concerns about idiosyncratic volatility highlighted by recent bankruptcies [19][20] - The company expects elevated repricing activity and ongoing credit dispersion to create opportunities for outperformance through active portfolio management [23] Other Important Information - The company increased its credit hedge portfolio to approximately $90 million by the end of the quarter, equating to about 40% of its NAV, to provide downside protection [21] - Following the quarter end, the synthetic short position in credit hedges reached over $150 million in high-yield equivalents [21] Q&A Session Summary Question: What drove the increase in credit hedges from the end of September to the end of October? - The increase was primarily due to the growth in portfolio size and leverage, ensuring liquidity during market downturns [26][27] Question: Was the decrease in the CLO portfolio a more cautious view on credits? - The decrease was not necessarily a reflection of a cautious view but may have been due to distributions and markdowns in prices during the quarterly payment date [30][31] Question: Can you discuss the appetite for leverage and potential unsecured debt issuance? - The company is close to being fully invested and could potentially increase leverage to around $400 million, constrained by regulatory restrictions [40][41] Question: What are the predictions for CLO supply next year? - Predictions are uncertain, but there may be more reset and refinancing activities rather than new issues, depending on loan supply and market conditions [44][46] Question: How does AI impact the CLO market? - AI will affect the loan market, creating winners and losers, which raises concerns about credit dispersion and overall portfolio performance [48][50]

Financial Data and Key Metrics Changes - The meeting reported that over 302 million votes were represented, exceeding 86% of the voting power as of the record date [7] - Preliminary voting results indicated that each of the eight director nominees received at least 93% of the votes cast [12] - The compensation of named executive officers was approved by at least 94% of the voting power [13] Business Line Data and Key Metrics Changes - No specific business line data or key metrics were discussed during the meeting [11][16] Market Data and Key Metrics Changes - No specific market data or key metrics were provided during the meeting [11][16] Company Strategy and Development Direction and Industry Competition - The company did not provide detailed comments on strategy or competitive positioning during the meeting [11][16] Management's Comments on Operating Environment and Future Outlook - Management indicated that forward-looking statements may be made in responses, with a reference to risk factors associated with the business [15] Other Important Information - The meeting was conducted in a virtual-only format to enhance stockholder access [1] - The proposals included the election of directors, approval of executive compensation, amendment of the employee stock purchase plan, and ratification of KPMG as the independent auditor for fiscal 2026 [9][14] Summary of Q&A Session Questions and Answers Question: No questions were submitted regarding the proposals - The meeting noted that no questions were submitted during the proposal discussion [11] Question: No general questions were submitted - The general Q&A session also had no questions submitted by stockholders [16]

Financial Data and Key Metrics Changes - Copa Holdings achieved a net profit of $173 million, or $4.20 per share, representing an 18.7% increase year-over-year compared to $146 million, or $3.50 per share in Q3 2024 [9] - Operating income reached $212 million, a 22.2% increase year-over-year, with an operating margin of 23.2%, up 2.9 percentage points from the previous year [9][10] - Unit cost (CASM) decreased by 2.7% year-over-year to $0.085, while CASM excluding fuel decreased by 0.8% to $0.056 [9][10] Business Line Data and Key Metrics Changes - Capacity in Available Seat Miles (ASMs) increased by 5.8% compared to Q3 2024, with a load factor increase of 1.8 percentage points to 88% [4] - Passenger yields decreased by 2.6% year-over-year, while unit revenues (RASM) increased by 1% to 11.1 cents [4][5] Market Data and Key Metrics Changes - Copa Airlines maintained an on-time performance of 89.7% and a flight completion factor of 99.8%, positioning itself among the best in the industry [5] - The company started flights to new destinations in Argentina and plans to expand services to Mexico and the Dominican Republic [5] Company Strategy and Development Direction - The company focuses on maintaining a strong balance sheet, low unit costs, and a passenger-friendly product, which are seen as pillars for consistent growth and profitability [7] - Copa Holdings anticipates adding eight more 737 MAX 8 aircraft in 2026, projecting a total fleet of 132 aircraft by the end of that year [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future performance, driven by healthy demand in the region and a strong business model [7] - The company reaffirmed its guidance for 2025, narrowing the operating margin range to 22%-23% and projecting full-year capacity growth of approximately 8% [11] Other Important Information - The company will make its fourth dividend payment of the year of $1.61 per share on December 15th to shareholders of record as of December 1st [10] - The investor day is scheduled for December 11th at the New York Stock Exchange [12] Q&A Session Summary Question: Discussion on Copa's credit card renewal and loyalty program - Management noted a renewal of the Visa agreement during Q3, contributing to a 30% year-over-year growth in the loyalty program [14][16] Question: Clarification on growth projections for 2025 - Half of the projected 11%-13% ASM growth for 2025 is attributed to the full-year effect of backloaded aircraft, with the remainder coming from increased frequencies and new destinations [17] Question: Insights on unit revenue trends with increased growth - Management indicated that most growth comes from high-demand routes, suggesting less impact on unit revenues than typically expected with double-digit ASM growth [20] Question: Update on Copa's hedging policy - Management confirmed that there are no plans to change the current hedging strategy, which has been effective for the company [72] Question: Update on the densification plan - Approximately half of the planned densification has been completed, with the remaining expected to be done in 2026 [76]