Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of David Burtzlaff - Stephens, Inc.
David Burtzlaff - Stephens, Inc
Great quarter here. I have got a few questions. First, on the loss rate, are you seeing any change in your new customers that may bring that loss rate down?
Dan Tonissen
I do not believe that there has been any impact from that. In fact, when you think about it David, our initial defaults were down significantly the last year and typically that is not something you see with new customers and I said in my remarks earlier most of that is from the focus that we have in the store of working with the customer courtesy calls on very working to get demand on a few days.
David Burtzlaff - Stephens, Inc
Okay. And then, with respect to the Pawn loan balances, did you see those declines later in the quarter than when they normally would and as a result under the bottom happens later in the quarter and has it recovered all the way at quarter end?
Dan Tonissen
Typically, the loan balances due decline faster. As you, near the end of the quarter because of the tax reflects.
Joe Rotunda
Yes, but if you look at the seasonal pattern during the quarter David, and I think that is your question. I would not say there was a significant change from what we have seen in the past years.
David Burtzlaff - Stephens, Inc
Okay. And then did you say you have title loans on the 138 stores now?
Joe Rotunda
A hundred and thirty six.
David Burtzlaff - Stephens, Inc
So, that is all. I mean, you ramped that up a lot faster than what you had indicated before because I thought on the last call, you said you have about 100 stores by year-end.
Joe Rotunda
That is correct. We were pleased with the roll up. We have it fairly well-systemized as well. There is very little for the associate to do and the system is able and with limited information being put in to be able to obtain a low value based on the value of the car as well as the income of the customer.
David Burtzlaff - Stephens, Inc
Okay. Then, last question: on the guidance of the $1.50 to $1.52 does that include the two said charge in the first quarter for the stock option grant?
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