Navient Corporation (NASDAQ:NAVI) Q1 2024 Earnings Conference Call April 24, 2024 8:00 AM ET

Company Participants

Jen Earyes – Vice President-Investor Relations
David Yowan – Chief Executive Officer
Joe Fisher – Chief Financial Officer

Conference Call Participants

Steven Kwok – KBW
Melissa Wedel – JPMorgan

Operator

Good day and welcome to the Navient’s First Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] As a reminder, this call may be recorded.

I would now like to turn the call over to Jen Earyes, Vice President of Investor Relations. Please go ahead.

Jen Earyes

Hello, good morning and welcome to Navient’s earnings call for the first quarter of 2024. With me today are David Yowan, Navient’s CEO; and Joe Fisher, Navient’s CFO. After the prepared remarks, we will open up the call for questions. A presentation accompanies today’s discussion, which you can find on navient.com/investors. Before we begin, keep in mind our discussion will contain predictions, expectations, forward-looking statements, and other information about our business that is based on management’s current expectations as of the date of this presentation. Actual results in the future may be materially different from those discussed here. This could be due to a variety of factors.

Listeners should refer to the discussion of those factors on the company’s Form 10-K and other filings with the SEC. During this conference call, we will refer to non-GAAP financial measures, including core earnings, adjusted tangible equity ratio, and various other non-GAAP financial measures that are derived from core earnings. Our GAAP results, description of our non-GAAP financial measures, and the reconciliation of core earnings to GAAP results can be found beginning on Page 15 of Navient’s first quarter 2024 earnings release, which is posted on our website.

Thank you and I now will turn the call over to Dave.

David Yowan

Thanks, Jen. Good morning, everyone. Thank you for joining the call and for your interest in Navient. Let me begin by providing an update on our progress against the three strategic actions we announced in January. We’ve begun to implement these actions and have made significant progress in a short period of time to deliver on the overall expense reductions within the timelines we described during our Q4 earnings call. As a reminder, the three strategic actions we’re pursuing are: one, adopting a variable cost outsourced servicing model, two, exploring strategic options for the business processing division including divestiture; and three, streamlining shared services infrastructure and corporate footprint. These actions are intended to significantly reduce the expense base and simplify the company. They should increase the amount of net cash flows from our loan portfolios and increase the visibility and returns around growth initiatives.