On Wednesday, DFC Global Corp (NASDAQ:DLLR) reported its fourth quarter earnings and discussed the following topics in its earnings conference call. Take a look.
Retail Consumer Loan Fees
Bob Ramsey – FBR Capital Markets & Co.: My first question has to do with the retail consumer loan fees. They were down sequentially and were little bit lighter than I was looking for. I am just curious, what are your thoughts on that line item this quarter and could you remind me how the seasonality might have affected it one way or the other?
Randy Underwood – EVP and CFO: I think they were pretty much in line with our expectations. Certainly in this quarter, the pound sterling and the Canadian money had a negative impact on our translated revenues as well as our operations. So, I don’t know you might have addressed the currency translation on those two large business units of ours that are retail business units, but I would suspect that might be the main reason.
Bob Ramsey – FBR Capital Markets & Co.: Obviously, you all have given guidance for next year that is – I guess the whole range is below where the consensus is right now. What do you think are maybe some of the bigger areas of difference between where you guys see the business going next year and where the Street has got you?
Randy Underwood – EVP and CFO: I am not sure I agree with you, I think the consensus is about $2.50 a share and we gave a range of $2.35 to $2.55.
Bob Ramsey – FBR Capital Markets & Co.: I thought I saw $2.60, maybe I saw a number that was not up to date.
Randy Underwood – EVP and CFO: I think you probably did Bob. We’re certainly bracketing I think just about everybody who has guidance out.
Bob Ramsey – FBR Capital Markets & Co.: What was the same-store sales growth out of the United Kingdom this quarter?
Randy Underwood – EVP and CFO: It was about 6% on a constant currency basis.
Bob Ramsey – FBR Capital Markets & Co.: And that I guess slowed as well relative to recent quarters. What you guys were seeing on the ground in the U.K. on the retail business?
Randy Underwood – EVP and CFO: What we continue to see in all of our business which is certainly a drag on constant dollar as well as converted dollar same-store sales is the continuing secular decline in check cashing, and that’s something we’ve all being seeing for several years, and that’s probably the biggest drag that we’ve seen not only in U.K. but in as I said all of our store based businesses, and certainly as we’ve spoken before, gold buying and the margins that come off of that are somewhat reduced presently over what they were historically if you compare them to say a year ago or so, but still very good product line for us and provide very good growth for us, but not comparable to where it was a year ago. I think that’s fair to comment throughout the sector as well.
Same-Store Growth in the U.K.
David Scharf – JMP Securities: I wanted to just follow-up on the last question regarding the same-store growth in the U.K., maybe slowing down from recent quarters because obviously the secular decline in check cashing isn’t a new development. I’m just curious with each passing month as you get more and more data and analytics become more and more refined around Internet lending is there any change relative to maybe your earlier expectations about rate of cannibalization of online lending to support traffic?
Jeffrey Weiss – Chairman and CEO: I don’t think so. Still to our surprise, there is very little overlap between our store customer and our Internet customer. Part of that also explains the higher loss rates on the Internet because these customers are new to the Company, so there still seems to be very, very little cannibalization.
David Scharf – JMP Securities: Along the same lines on Internet, this may seem like it’s coming out of list, but I’m going to ask anyway, a few weeks ago Green Dot, a prepaid company, obviously, U.S.-based, really out of nowhere discussed spending more on fraud prevention then it had in the past in their forward outlook. I think a week later Company Higher One deals with online bank accounts, talked about as they have gotten larger they have attract the attention of more hackers and they have invested more in fraud. Above and beyond the normal risk metrics and risk tolerance that you have to deal within online lending as Risicum and MEM and others gotten larger and more prominent, is there anything on the margin that tells you’re attracting more attention from fraudsters? Because it seems like the disparate companies all had one thing in common, they are saying they are showing up more and more on the radar screen as they get larger and I’m just curious if there is…
Jeffrey Weiss – Chairman and CEO: Obviously, with every business you are prone to incursion, it. I think one of the interesting aspects of our business is that the magnitude of the transaction is so small, so that if you do get a poor incursion it’s a – in the U.K. it’s a GBP 300 issue unlike cannibalizing a credit card list or getting access to a zillion bank accounts. That’s not to say that the (indiscernible) hasn’t been promulgated and in fact, UK regulators fined an online operator in the U.K. Oddly enough it has the effect of enhancing our competitive position. Because we are large, I think we can afford it and do spend and deploy much more sophisticated, extensive and expensive security mechanisms than small players can actually do. That said, I’m afraid to say more of a more tempting fate.