Delaware | 90-0934597 | |||||||
(State or other jurisdiction Of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
3527 North Ridge Road, Wichita, KS | 67205 | |||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common stock, $0.001 par value per share | CURO | New York Stock Exchange |
Large accelerated filer | ☐ | Accelerated filer | ☒ | |||||||||||
Non-accelerated filer | ☐ | |||||||||||||
Smaller reporting company | ☒ | Emerging growth company | ☐ |
Page | |||||||||||||||||||||||
Item 1. | Financial Statements (unaudited) | ||||||||||||||||||||||
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Term or abbreviation | Definition | |||||||
12.00% Senior Secured Notes | 12.00% Senior Secured Notes, issued in February and November 2017 for a total of $470.0 million due March 1, 2022, fully extinguished September 2018 | |||||||
2017 Final CFPB Rule | The final rule issued by the CFPB in 2017 in Payday, Vehicle Title and Certain high Cost Installment loans. | |||||||
2019 Proposed Rule | The subsequent CFPB rulemaking process which proposed to rescind the mandatory underwriting provisions of the 2017 Final CFPB Rule. | |||||||
2019 Form 10-K | Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on March 9, 2020. | |||||||
8.25% Senior Secured Notes | 8.25% Senior Secured Notes, issued in August 2018 for $690.0 million, which mature on September 1, 2025 | |||||||
Ad Astra | Ad Astra Recovery Services, Inc., our former exclusive provider of third-party collection services for the U.S. business that we acquired in January 2020 | |||||||
Adjusted EBITDA | EBITDA plus or minus certain non-cash and other adjusting items; Refer to "Supplemental Non-GAAP Financial Information" for additional details. | |||||||
Allowance coverage | Allowance for loan losses as a percentage of gross loans receivable | |||||||
AOCI | Accumulated Other Comprehensive Income (Loss) | |||||||
ASC | Accounting Standards Codification | |||||||
ASU | Accounting Standards Update | |||||||
Average gross loans receivable | Utilized to calculate product yield and NCO rates; calculated as average of beginning of quarter and end of quarter gross loans receivable | |||||||
Basis points | ||||||||
CAB | Credit access bureau | |||||||
CARES Act | Coronavirus Aid, Relief, and Economic Security Act | |||||||
Cash Money | Cash Money Cheque Cashing Inc., a Canadian subsidiary | |||||||
Cash Money Revolving Credit Facility | C$10.0 million revolving credit facility with Royal Bank of Canada | |||||||
CFPB | Consumer Financial Protection Bureau | |||||||
CFTC | CURO Financial Technologies Corp., a wholly-owned subsidiary of the Company | |||||||
CODM | Chief Operating Decision Maker | |||||||
Condensed Consolidated Financial Statements | The | |||||||
COVID-19 | An infectious disease caused by the 2019 novel coronavirus | |||||||
CSO | Credit services organization | |||||||
EBITDA | Earnings Before Interest, Taxes, Depreciation and Amortization | |||||||
Exchange Act | Securities Exchange Act of 1934, as amended | |||||||
FASB | Financial Accounting Standards Board | |||||||
FFL | Friedman Fleischer & Lowe Capital Partners II, L.P. and its affiliated investment funds, a related party to the Company | |||||||
Form 10-Q | Quarterly Report on Form 10-Q for the three and nine months period ended September 30, 2020 | |||||||
Gross Combined Loans Receivable | Gross loans receivable plus loans originated by third-party lenders which are Guaranteed by the Company | |||||||
Guaranteed by the Company | Loans originated by third-party lenders through CSO program which we guarantee but are not | |||||||
Katapult | ||||||||
NCO | Net charge-off; total charge-offs less total recoveries | |||||||
NOL | Net operating loss | |||||||
Non-Recourse Canada SPV Facility | A four-year revolving credit facility with Waterfall Asset Management, LLC with capacity up to C$250.0 million | |||||||
Non-Recourse U.S. SPV Facility | A | |||||||
OCCC | Texas Office of Consumer Credit Commissioner |
Term or abbreviation | Definition | |||||||
Right of use | ||||||||
RSU | Restricted Stock Unit | |||||||
SEC | Securities and Exchange Commission | |||||||
Senior Revolver | Senior Secured Revolving Loan Facility with borrowing capacity of $50.0 million | |||||||
The change from the second quarter of 2020 to the third quarter of 2020 | ||||||||
SRC | Smaller Reporting Company as defined by the SEC | |||||||
Stride Bank | In 2019, we partnered with Stride Bank, N.A. to launch a bank-sponsored Unsecured Installment loan originated by Stride Bank. We market and service loans on behalf of Stride Bank and the bank licenses our proprietary credit decisioning for Stride Bank's scoring and approval. | |||||||
Troubled Debt Restructuring. Debt restructuring in which a concession is granted to the borrower as a result of economic or legal reasons related to the borrower's financial difficulties. | ||||||||
U.K. Subsidiaries | Collectively, Curo Transatlantic Limited and SRC Transatlantic Limited | |||||||
U.S. | United States of America | |||||||
Generally accepted accounting principles in the United States | ||||||||
VIE | Variable Interest Entity; our wholly-owned, bankruptcy-remote special purpose |
March 31, 2020 | December 31, 2019 | September 30, 2020 | December 31, 2019 | |||||||||||||||
ASSETS | ASSETS | ASSETS | ||||||||||||||||
Cash | $ | 138,714 | $ | 75,242 | ||||||||||||||
Restricted cash (includes restricted cash of consolidated VIEs of $22,317 and $17,427 as of March 31, 2020 and December 31, 2019, respectively) | 41,527 | 34,779 | ||||||||||||||||
Gross loans receivable (includes loans of consolidated VIEs of $231,258 and $244,492 as of March 31, 2020 and December 31, 2019, respectively) | 564,437 | 665,828 | ||||||||||||||||
Less: allowance for loan losses (includes allowance for losses of consolidated VIEs of $27,421 and $24,425 as of March 31, 2020 and December 31, 2019, respectively) | (99,842 | ) | (106,835 | ) | ||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 207,071 | $ | 75,242 | |||||||||||||
Restricted cash (includes restricted cash of consolidated VIEs of $33,696 and $17,427 as of September 30, 2020 and December 31, 2019, respectively) | Restricted cash (includes restricted cash of consolidated VIEs of $33,696 and $17,427 as of September 30, 2020 and December 31, 2019, respectively) | 62,527 | 34,779 | |||||||||||||||
Gross loans receivable (includes loans of consolidated VIEs of $327,242 and $244,492 as of September 30, 2020 and December 31, 2019, respectively) | Gross loans receivable (includes loans of consolidated VIEs of $327,242 and $244,492 as of September 30, 2020 and December 31, 2019, respectively) | 497,442 | 665,828 | |||||||||||||||
Less: allowance for loan losses (includes allowance for losses of consolidated VIEs of $53,183 and $24,425 as of September 30, 2020 and December 31, 2019, respectively) | Less: allowance for loan losses (includes allowance for losses of consolidated VIEs of $53,183 and $24,425 as of September 30, 2020 and December 31, 2019, respectively) | (80,582) | (106,835) | |||||||||||||||
Loans receivable, net | 464,595 | 558,993 | Loans receivable, net | 416,860 | 558,993 | |||||||||||||
Income taxes receivable | 24,435 | 11,426 | Income taxes receivable | 35,214 | 11,426 | |||||||||||||
Prepaid expenses and other | 34,120 | 35,890 | ||||||||||||||||
Prepaid expenses and other (includes prepaid expenses and other of consolidated VIEs of $1,165 as of September 30, 2020) | Prepaid expenses and other (includes prepaid expenses and other of consolidated VIEs of $1,165 as of September 30, 2020) | 28,259 | 35,890 | |||||||||||||||
Property and equipment, net | 66,787 | 70,811 | Property and equipment, net | 61,681 | 70,811 | |||||||||||||
Investments | Investments | 23,908 | 10,068 | |||||||||||||||
Right of use asset - operating leases | 114,272 | 117,453 | Right of use asset - operating leases | 111,055 | 117,453 | |||||||||||||
Deferred tax assets | — | 5,055 | Deferred tax assets | 0 | 5,055 | |||||||||||||
Goodwill | 132,825 | 120,609 | Goodwill | 134,589 | 120,609 | |||||||||||||
Other intangibles, net | 33,944 | 33,927 | Other intangibles, net | 37,219 | 33,927 | |||||||||||||
Other assets | 15,547 | 17,710 | Other assets | 8,151 | 7,642 | |||||||||||||
Total Assets | $ | 1,066,766 | $ | 1,081,895 | Total Assets | $ | 1,126,534 | $ | 1,081,895 | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | LIABILITIES AND STOCKHOLDERS' EQUITY | LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||
Liabilities | Liabilities | |||||||||||||||||
Accounts payable and accrued liabilities (includes accounts payable and accrued liabilities of consolidated VIEs of $13,267 and $13,462 as of March 31, 2020 and December 31, 2019, respectively) | $ | 53,603 | $ | 60,083 | ||||||||||||||
Accounts payable and accrued liabilities (includes accounts payable and accrued liabilities of consolidated VIEs of $26,665 and $13,462 as of September 30, 2020 and December 31, 2019, respectively) | Accounts payable and accrued liabilities (includes accounts payable and accrued liabilities of consolidated VIEs of $26,665 and $13,462 as of September 30, 2020 and December 31, 2019, respectively) | $ | 51,747 | $ | 60,083 | |||||||||||||
Deferred revenue | 6,655 | 10,170 | Deferred revenue | 5,220 | 10,170 | |||||||||||||
Lease liability - operating leases | 121,715 | 124,999 | Lease liability - operating leases | 118,831 | 124,999 | |||||||||||||
Accrued interest (includes accrued interest of consolidated VIEs of $627 and $871 as of March 31, 2020 and December 31, 2019, respectively) | 5,392 | 19,847 | ||||||||||||||||
Accrued interest (includes accrued interest of consolidated VIEs of $983 and $871 as of September 30, 2020 and December 31, 2019, respectively) | Accrued interest (includes accrued interest of consolidated VIEs of $983 and $871 as of September 30, 2020 and December 31, 2019, respectively) | 5,728 | 19,847 | |||||||||||||||
Liability for losses on CSO lender-owned consumer loans | 9,189 | 10,623 | Liability for losses on CSO lender-owned consumer loans | 6,198 | 10,623 | |||||||||||||
Debt (includes debt and issuance costs of consolidated VIEs of $87,365 and $2,491 as of March 31, 2020 and $115,243 and $3,022 as of December 31, 2019, respectively) | 788,451 | 790,544 | ||||||||||||||||
Debt (includes debt and issuance costs of consolidated VIEs of $128,302 and $8,408 as of September 30, 2020 and $115,243 and $3,022 as of December 31, 2019, respectively) | Debt (includes debt and issuance costs of consolidated VIEs of $128,302 and $8,408 as of September 30, 2020 and $115,243 and $3,022 as of December 31, 2019, respectively) | 799,460 | 790,544 | |||||||||||||||
Other long-term liabilities | 9,095 | 10,664 | Other long-term liabilities | 13,376 | 10,664 | |||||||||||||
Deferred tax liabilities | 13,095 | 4,452 | Deferred tax liabilities | 13,421 | 4,452 | |||||||||||||
Total Liabilities | 1,007,195 | 1,031,382 | Total Liabilities | 1,013,981 | 1,031,382 | |||||||||||||
Commitments and contingencies (Note 13) | Commitments and contingencies (Note 13) | |||||||||||||||||
Stockholders' Equity | Stockholders' Equity | |||||||||||||||||
Preferred stock - $0.001 par value, 25,000,000 shares authorized; no shares were issued | — | — | ||||||||||||||||
Common stock - $0.001 par value; 225,000,000 shares authorized; 46,934,750 and 46,770,765 shares issued; and 40,779,447 and 41,156,224 shares outstanding at the respective period ends | 9 | 9 | ||||||||||||||||
Treasury stock, at cost - 6,155,303 and 5,614,541 shares as of the respective period ends | (77,852 | ) | (72,343 | ) | ||||||||||||||
Preferred stock - $0.001 par value, 25,000,000 shares authorized; 0 shares were issued | Preferred stock - $0.001 par value, 25,000,000 shares authorized; 0 shares were issued | 0 | 0 | |||||||||||||||
Common stock - $0.001 par value; 225,000,000 shares authorized; 47,040,416 and 46,770,765 shares issued; and 40,885,113 and 41,156,224 shares outstanding at the respective period ends | Common stock - $0.001 par value; 225,000,000 shares authorized; 47,040,416 and 46,770,765 shares issued; and 40,885,113 and 41,156,224 shares outstanding at the respective period ends | 9 | 9 | |||||||||||||||
Treasury stock, at cost - 6,155,303 and 5,614,541 shares at the respective period ends | Treasury stock, at cost - 6,155,303 and 5,614,541 shares at the respective period ends | (77,852) | (72,343) | |||||||||||||||
Paid-in capital | 70,798 | 68,087 | Paid-in capital | 77,468 | 68,087 | |||||||||||||
Retained earnings | 127,472 | 93,423 | Retained earnings | 157,932 | 93,423 | |||||||||||||
Accumulated other comprehensive loss | (60,856 | ) | (38,663 | ) | Accumulated other comprehensive loss | (45,004) | (38,663) | |||||||||||
Total Stockholders' Equity | 59,571 | 50,513 | Total Stockholders' Equity | 112,553 | 50,513 | |||||||||||||
Total Liabilities and Stockholders' Equity | $ | 1,066,766 | $ | 1,081,895 | Total Liabilities and Stockholders' Equity | $ | 1,126,534 | $ | 1,081,895 |
Three Months Ended March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||
Revenue | $ | 280,806 | $ | 277,939 | Revenue | $ | 182,003 | $ | 297,264 | $ | 645,318 | $ | 839,503 | |||||||||||||||||
Provision for losses | 113,536 | 102,385 | Provision for losses | 54,750 | 123,867 | 218,979 | 338,262 | |||||||||||||||||||||||
Net revenue | 167,270 | 175,554 | Net revenue | 127,253 | 173,397 | 426,339 | 501,241 | |||||||||||||||||||||||
Cost of providing services | Cost of providing services | |||||||||||||||||||||||||||||
Salaries and benefits | 26,007 | 28,701 | Salaries and benefits | 24,246 | 27,462 | 74,976 | 82,249 | |||||||||||||||||||||||
Occupancy | 14,016 | 14,237 | Occupancy | 13,878 | 14,036 | 40,937 | 42,205 | |||||||||||||||||||||||
Office | 5,674 | 5,113 | Office | 5,058 | 5,993 | 14,532 | 16,563 | |||||||||||||||||||||||
Other costs of providing services | 9,655 | 14,220 | Other costs of providing services | 6,076 | 12,843 | 23,732 | 39,917 | |||||||||||||||||||||||
Advertising | 12,219 | 7,786 | Advertising | 14,425 | 16,424 | 32,394 | 36,990 | |||||||||||||||||||||||
Total cost of providing services | 67,571 | 70,057 | Total cost of providing services | 63,683 | 76,758 | 186,571 | 217,924 | |||||||||||||||||||||||
Gross margin | 99,699 | 105,497 | Gross margin | 63,570 | 96,639 | 239,768 | 283,317 | |||||||||||||||||||||||
Operating expense | ||||||||||||||||||||||||||||||
Operating expense (income) | Operating expense (income) | |||||||||||||||||||||||||||||
Corporate, district and other expenses | 42,807 | 49,088 | Corporate, district and other expenses | 36,658 | 38,665 | 116,246 | 123,043 | |||||||||||||||||||||||
Interest expense | 17,324 | 17,690 | Interest expense | 18,383 | 17,364 | 54,018 | 52,077 | |||||||||||||||||||||||
Loss from equity method investment | 1,618 | — | ||||||||||||||||||||||||||||
(Income) loss from equity method investment | (Income) loss from equity method investment | (3,530) | 1,384 | (2,653) | 5,132 | |||||||||||||||||||||||||
Total operating expense | 61,749 | 66,778 | Total operating expense | 51,511 | 57,413 | 167,611 | 180,252 | |||||||||||||||||||||||
Income from continuing operations before income taxes | 37,950 | 38,719 | Income from continuing operations before income taxes | 12,059 | 39,226 | 72,157 | 103,065 | |||||||||||||||||||||||
Provision for income taxes | 1,937 | 10,046 | ||||||||||||||||||||||||||||
(Benefit) provision for income taxes | (Benefit) provision for income taxes | (822) | 11,239 | 2,183 | 28,738 | |||||||||||||||||||||||||
Net income from continuing operations | 36,013 | 28,673 | Net income from continuing operations | 12,881 | 27,987 | 69,974 | 74,327 | |||||||||||||||||||||||
Net income (loss) from discontinued operations, before income tax | 390 | (39,048 | ) | Net income (loss) from discontinued operations, before income tax | 0 | 0 | 1,714 | (39,048) | ||||||||||||||||||||||
Income tax expense (benefit) related to disposition | 98 | (47,423 | ) | Income tax expense (benefit) related to disposition | 0 | 598 | 429 | (45,991) | ||||||||||||||||||||||
Net income from discontinued operations | 292 | 8,375 | ||||||||||||||||||||||||||||
Net (loss) income from discontinued operations | Net (loss) income from discontinued operations | 0 | (598) | 1,285 | 6,943 | |||||||||||||||||||||||||
Net income | $ | 36,305 | $ | 37,048 | Net income | $ | 12,881 | $ | 27,389 | $ | 71,259 | $ | 81,270 | |||||||||||||||||
Basic earnings per share: | ||||||||||||||||||||||||||||||
Basic earnings (loss) per share: | Basic earnings (loss) per share: | |||||||||||||||||||||||||||||
Continuing operations | $ | 0.88 | $ | 0.62 | Continuing operations | $ | 0.32 | $ | 0.63 | $ | 1.71 | $ | 1.63 | |||||||||||||||||
Discontinued operations | 0.01 | 0.18 | Discontinued operations | 0 | (0.01) | 0.03 | 0.15 | |||||||||||||||||||||||
Basic earnings per share | $ | 0.89 | $ | 0.80 | Basic earnings per share | $ | 0.32 | $ | 0.62 | $ | 1.74 | $ | 1.78 | |||||||||||||||||
Diluted earnings per share: | ||||||||||||||||||||||||||||||
Diluted earnings (loss) per share: | Diluted earnings (loss) per share: | |||||||||||||||||||||||||||||
Continuing operations | $ | 0.86 | $ | 0.61 | Continuing operations | $ | 0.31 | $ | 0.61 | $ | 1.68 | $ | 1.59 | |||||||||||||||||
Discontinued operations | 0.01 | 0.18 | Discontinued operations | 0 | (0.01) | 0.03 | 0.15 | |||||||||||||||||||||||
Diluted earnings per share | $ | 0.87 | $ | 0.79 | Diluted earnings per share | $ | 0.31 | $ | 0.60 | $ | 1.71 | $ | 1.74 | |||||||||||||||||
Weighted average common shares outstanding: | Weighted average common shares outstanding: | |||||||||||||||||||||||||||||
Basic | 40,817 | 46,424 | Basic | 40,885 | 44,422 | 40,838 | 45,759 | |||||||||||||||||||||||
Diluted | 41,892 | 47,319 | Diluted | 41,775 | 46,010 | 41,660 | 46,887 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net income | $ | 12,881 | $ | 27,389 | $ | 71,259 | $ | 81,270 | |||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Foreign currency translation adjustment, net of $0 tax in all periods | 5,591 | (1,954) | (6,341) | 18,376 | |||||||||||||||||||
Other comprehensive income (loss) | 5,591 | (1,954) | (6,341) | 18,376 | |||||||||||||||||||
Comprehensive income | $ | 18,472 | $ | 25,435 | $ | 64,918 | $ | 99,646 |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Net income | $ | 36,305 | $ | 37,048 | |||
Other comprehensive (loss) income: | |||||||
Foreign currency translation adjustment, net of $0 tax in both periods | (22,193 | ) | 16,695 | ||||
Other comprehensive (loss) income | (22,193 | ) | 16,695 | ||||
Comprehensive income | $ | 14,112 | $ | 53,743 |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Cash flows from operating activities | |||||||||||
Net income from continuing operations | $ | 69,974 | $ | 74,327 | |||||||
Adjustments to reconcile net income to net cash provided by continuing operating activities: | |||||||||||
Depreciation and amortization | 13,312 | 14,180 | |||||||||
Provision for loan losses | 218,979 | 338,262 | |||||||||
Amortization of debt issuance costs and bond discount | 2,756 | 2,273 | |||||||||
Deferred income tax (benefit) expense | 14,187 | (3,147) | |||||||||
Loss on disposal of property and equipment | 145 | 47 | |||||||||
(Income) loss from equity method investment | (2,653) | 5,132 | |||||||||
Increase in cash surrender value of life insurance | (418) | 0 | |||||||||
Share-based compensation | 9,896 | 7,587 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accrued interest on loans receivable | 26,566 | (11,446) | |||||||||
Prepaid expenses and other assets | 7,362 | 14,275 | |||||||||
Other assets | 79 | (8,439) | |||||||||
Accounts payable and accrued liabilities | (10,439) | 13,596 | |||||||||
Deferred revenue | (4,843) | (533) | |||||||||
Income taxes payable | 0 | 25,117 | |||||||||
Income taxes receivable | (23,790) | 5,598 | |||||||||
Accrued interest | (14,092) | (15,303) | |||||||||
Other long-term liabilities | 2,725 | 2,767 | |||||||||
Net cash provided by continuing operating activities | 309,746 | 464,293 | |||||||||
Net cash provided by (used in) discontinued operating activities | 1,714 | (504) | |||||||||
Net cash provided by operating activities | 311,460 | 463,789 | |||||||||
Cash flows from investing activities | |||||||||||
Purchase of property and equipment | (7,401) | (8,667) | |||||||||
Loans receivable originated or acquired | (951,803) | (1,369,644) | |||||||||
Loans receivable repaid | 836,915 | 995,291 | |||||||||
Investments in Katapult | (11,187) | (8,168) | |||||||||
Acquisition of Ad Astra, net of acquiree's cash received | (14,418) | 0 | |||||||||
Net cash used in continuing investing activities | (147,894) | (391,188) | |||||||||
Net cash used in discontinued investing activities | 0 | (14,213) | |||||||||
Net cash used in investing activities | (147,894) | (405,401) | |||||||||
Cash flows from financing activities | |||||||||||
Proceeds from Non-Recourse U.S. SPV facility | 35,206 | 0 | |||||||||
Proceeds from Non-Recourse Canada SPV facility | 23,357 | 15,992 | |||||||||
Payments on Non-Recourse Canada SPV facility | (42,131) | (24,835) | |||||||||
Debt issuance costs paid | (6,991) | (198) | |||||||||
Proceeds from credit facilities | 69,853 | 179,811 | |||||||||
Payments on credit facilities | (69,853) | (174,811) | |||||||||
Payments on subordinated stockholder debt | 0 | (2,252) | |||||||||
Proceeds from exercise of stock options | 126 | 87 | |||||||||
Payments to net share settle restricted stock units vesting | (641) | (110) | |||||||||
Repurchase of common stock | (5,908) | (52,172) | |||||||||
Dividends paid to stockholders | (6,750) | 0 | |||||||||
Net cash used in financing activities (1) | (3,732) | (58,488) | |||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (257) | 1,204 | |||||||||
Net increase in cash, cash equivalents and restricted cash | 159,577 | 1,104 | |||||||||
Cash, cash equivalents and restricted cash at beginning of period | 110,021 | 99,857 | |||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 269,598 | $ | 100,961 | |||||||
(1) Financing activities were not impacted by discontinued operations |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Cash flows from operating activities | |||||||
Net income from continuing operations | $ | 36,013 | $ | 28,673 | |||
Adjustments to reconcile net income to net cash provided by continuing operating activities: | |||||||
Depreciation and amortization | 4,537 | 4,920 | |||||
Provision for loan losses | 113,536 | 102,385 | |||||
Amortization of debt issuance costs and bond discount | 688 | 872 | |||||
Deferred income tax (benefit) expense | 14,093 | (10,343 | ) | ||||
Loss on disposal of property and equipment | 44 | 991 | |||||
Loss from equity method investment | 1,618 | — | |||||
Share-based compensation | 3,194 | 2,172 | |||||
Changes in operating assets and liabilities: | |||||||
Accrued interest on loans receivable | 16,671 | 1,937 | |||||
Prepaid expenses and other assets | 982 | 9,938 | |||||
Other assets | 332 | (6,374 | ) | ||||
Accounts payable and accrued liabilities | (7,492 | ) | 2,326 | ||||
Deferred revenue | (3,276 | ) | (1,709 | ) | |||
Income taxes payable | — | 29,562 | |||||
Income taxes receivable | (13,134 | ) | (9,890 | ) | |||
Accrued interest | (14,389 | ) | (15,329 | ) | |||
Other liabilities | (1,548 | ) | 868 | ||||
Net cash provided by continuing operating activities | 151,869 | 140,999 | |||||
Net cash provided by (used in) discontinued operating activities | 390 | (504 | ) | ||||
Net cash provided by operating activities | 152,259 | 140,495 | |||||
Cash flows from investing activities | |||||||
Purchase of property, equipment and software | (3,658 | ) | (3,119 | ) | |||
Loans receivable originated or acquired | (439,244 | ) | (420,568 | ) | |||
Loans receivable repaid | 378,843 | 355,621 | |||||
Investments in Katapult | — | (1,568 | ) | ||||
Acquisition of Ad Astra, net of acquiree's cash received | (14,418 | ) | — | ||||
Net cash used in continuing investing activities | (78,477 | ) | (69,634 | ) | |||
Net cash used in discontinued investing activities | — | (14,213 | ) | ||||
Net cash used in investing activities | (78,477 | ) | (83,847 | ) | |||
Cash flows from financing activities | |||||||
Proceeds from Non-Recourse Canada SPV facility | 23,560 | 3,762 | |||||
Payments on Non-Recourse Canada SPV facility | (42,497 | ) | (24,831 | ) | |||
Debt issuance costs paid | (150 | ) | (199 | ) | |||
Proceeds from credit facilities | 69,938 | 30,478 | |||||
Payments on credit facilities | (44,938 | ) | (50,478 | ) | |||
Proceeds from exercise of stock options | 126 | 40 | |||||
Payments to net share settle restricted stock units vesting | (609 | ) | (37 | ) | |||
Repurchase of common stock | (5,908 | ) | — | ||||
Dividends paid to stockholders | (2,247 | ) | — | ||||
Net cash used in financing activities (1) | (2,725 | ) | (41,265 | ) | |||
Effect of exchange rate changes on cash and restricted cash | (837 | ) | 1,938 | ||||
Net increase in cash and restricted cash | 70,220 | 17,321 | |||||
Cash and restricted cash at beginning of period | 110,021 | 99,857 | |||||
Cash and restricted cash at end of period | 180,241 | 117,178 | |||||
(1) Financing activities were not impacted by discontinued operations |
September 30, | ||||||||||||||
2020 | 2019 | |||||||||||||
Cash and cash equivalents | $ | 207,071 | $ | 62,207 | ||||||||||
Restricted cash (includes restricted cash of consolidated VIEs of $33,696 and $21,897 as of September 30, 2020 and September 30, 2019, respectively) | 62,527 | 38,754 | ||||||||||||
Total cash, cash equivalents and restricted cash used in the Statement of Cash Flows | $ | 269,598 | $ | 100,961 | ||||||||||
March 31, | ||||||||
2020 | 2019 | |||||||
Cash | $ | 138,714 | $ | 82,859 | ||||
Restricted cash (includes restricted cash of consolidated VIEs of $22,317 and $15,460 as of March 31, 2020 and March 31, 2019, respectively) | 41,527 | 34,319 | ||||||
Total cash and restricted cash used in the Statements of Cash Flows | 180,241 | 117,178 |
September 30, 2020 | December 31, 2019 | |||||||||||||
Assets | ||||||||||||||
Restricted cash | $ | 33,696 | $ | 17,427 | ||||||||||
Loans receivable less allowance for loan losses | 274,059 | 220,067 | ||||||||||||
Prepaid expenses and other | 1,165 | 0 | ||||||||||||
Deferred tax assets | 100 | 0 | ||||||||||||
Total Assets | $ | 309,020 | $ | 237,494 | ||||||||||
Liabilities | ||||||||||||||
Accounts payable and accrued liabilities | $ | 26,665 | $ | 13,462 | ||||||||||
Deferred revenue | 137 | 46 | ||||||||||||
Accrued interest | 983 | 871 | ||||||||||||
Intercompany payable | 35,181 | 69,639 | ||||||||||||
Debt | 119,894 | 112,221 | ||||||||||||
Total Liabilities | $ | 182,860 | $ | 196,239 |
March 31, 2020 | December 31, 2019 | |||||||
Assets | ||||||||
Restricted cash | $ | 22,317 | $ | 17,427 | ||||
Loans receivable less allowance for loan losses | 203,837 | 220,067 | ||||||
Total Assets | $ | 226,154 | $ | 237,494 | ||||
Liabilities | ||||||||
Accounts payable and accrued liabilities | $ | 13,267 | $ | 13,462 | ||||
Deferred revenue | 39 | 46 | ||||||
Accrued interest | 627 | 871 | ||||||
Intercompany payable | 80,240 | 69,639 | ||||||
Debt | 84,874 | 112,221 | ||||||
Total Liabilities | $ | 179,047 | $ | 196,239 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Unsecured Installment | $ | 67,408 | $ | 137,233 | $ | 260,328 | $ | 395,119 | ||||||||||||||||||
Secured Installment | 16,692 | 28,270 | 62,379 | 81,823 | ||||||||||||||||||||||
Open-End | 58,711 | 66,120 | 186,429 | 173,961 | ||||||||||||||||||||||
Single-Pay | 25,084 | 49,312 | 92,973 | 141,605 | ||||||||||||||||||||||
Ancillary | 14,108 | 16,329 | 43,209 | 46,995 | ||||||||||||||||||||||
Total revenue(1) | $ | 182,003 | $ | 297,264 | $ | 645,318 | $ | 839,503 | ||||||||||||||||||
(1) Includes revenue from CSO programs of $36.7 million and $72.8 million for the three months ended September 30, 2020 and 2019, respectively, and $142.5 million and $199.9 million for the nine months ended September 30, 2020 and 2019, respectively. |
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
Unsecured Installment | $ | 122,409 | $ | 135,778 | ||||
Secured Installment | 26,286 | 27,477 | ||||||
Open-End | 70,982 | 52,869 | ||||||
Single-Pay | 45,157 | 46,761 | ||||||
Ancillary | 15,972 | 15,054 | ||||||
Total revenue(1) | $ | 280,806 | $ | 277,939 | ||||
(1) Includes revenue from CSO programs of $68.1 million and $71.7 million for the three months ended March 31, 2020 and 2019, respectively. |
September 30, 2020 | ||||||||||||||||||||
Single-Pay(1) | Unsecured Installment | Secured Installment | Open-End | Total | ||||||||||||||||
Current loans receivable | $ | 41,274 | $ | 67,017 | $ | 41,433 | $ | 290,427 | $ | 440,151 | ||||||||||
Delinquent loans receivable | 0 | 17,942 | 7,542 | 31,807 | 57,291 | |||||||||||||||
Total loans receivable | 41,274 | 84,959 | 48,975 | 322,234 | 497,442 | |||||||||||||||
Less: allowance for losses | (3,197) | (18,859) | (7,109) | (51,417) | (80,582) | |||||||||||||||
Loans receivable, net | $ | 38,077 | $ | 66,100 | $ | 41,866 | $ | 270,817 | $ | 416,860 | ||||||||||
(1) Of the $41.3 million of Single-Pay receivables, $10.1 million relate to mandated extended payment options for certain Canada Single-Pay loans. |
March 31, 2020 | ||||||||||||||||
Single-Pay(1) | Unsecured Installment | Secured Installment | Open-End | Total | ||||||||||||
Current loans receivable | $ | 54,728 | $ | 88,152 | $ | 57,284 | $ | 264,019 | $ | 464,183 | ||||||
Delinquent loans receivable | — | 34,966 | 15,301 | 49,987 | 100,254 | |||||||||||
Total loans receivable | 54,728 | 123,118 | 72,585 | 314,006 | 564,437 | |||||||||||
Less: allowance for losses | (4,693 | ) | (28,965 | ) | (9,726 | ) | (56,458 | ) | (99,842 | ) | ||||||
Loans receivable, net | $ | 50,035 | $ | 94,153 | $ | 62,859 | $ | 257,548 | $ | 464,595 | ||||||
(1) Of the $54.7 million of Single-Pay receivables, $16.4 million relate to mandated extended payment options for certain Canada Single-Pay loans. |
September 30, 2020 | |||||||||||||||||
Unsecured Installment | Secured Installment | Open-End | Total | ||||||||||||||
Delinquent loans receivable | |||||||||||||||||
0-30 days past due | $ | 7,098 | $ | 3,576 | $ | 14,988 | $ | 25,662 | |||||||||
31-60 days past due | 4,758 | 1,883 | 7,505 | 14,146 | |||||||||||||
61 + days past due | 6,086 | 2,083 | 9,314 | 17,483 | |||||||||||||
Total delinquent loans receivable | $ | 17,942 | $ | 7,542 | $ | 31,807 | $ | 57,291 | |||||||||
December 31, 2019 | ||||||||||||||||||||
Single-Pay(1) | Unsecured Installment | Secured Installment | Open-End | Total | ||||||||||||||||
Current loans receivable | $ | 81,447 | $ | 117,682 | $ | 70,565 | $ | 285,452 | $ | 555,146 | ||||||||||
Delinquent loans receivable | 0 | 43,100 | 17,510 | 50,072 | 110,682 | |||||||||||||||
Total loans receivable | 81,447 | 160,782 | 88,075 | 335,524 | 665,828 | |||||||||||||||
Less: allowance for losses | (5,869) | (35,587) | (10,305) | (55,074) | (106,835) | |||||||||||||||
Loans receivable, net | $ | 75,578 | $ | 125,195 | $ | 77,770 | $ | 280,450 | $ | 558,993 | ||||||||||
(1) Of the $81.4 million of Single-Pay receivables, $22.4 million relate to mandated extended payment options for certain Canada Single-Pay loans. |
March 31, 2020 | |||||||||||||
Unsecured Installment | Secured Installment | Open-End | Total | ||||||||||
Delinquent loans receivable | |||||||||||||
0-30 days past due | $ | 12,511 | $ | 7,168 | $ | 21,381 | $ | 41,060 | |||||
31-60 days past due | 9,566 | 3,991 | 12,390 | 25,947 | |||||||||
61 + days past due | 12,889 | 4,142 | 16,216 | 33,247 | |||||||||
Total delinquent loans receivable | $ | 34,966 | $ | 15,301 | $ | 49,987 | $ | 100,254 |
December 31, 2019 | |||||||||||||||||
Unsecured Installment | Secured Installment | Open-End | Total | ||||||||||||||
Delinquent loans receivable | |||||||||||||||||
0-30 days past due | $ | 15,369 | $ | 8,039 | $ | 21,823 | $ | 45,231 | |||||||||
31-60 days past due | 12,403 | 4,885 | 13,191 | 30,479 | |||||||||||||
61 + days past due | 15,328 | 4,586 | 15,058 | 34,972 | |||||||||||||
Total delinquent loans receivable | $ | 43,100 | $ | 17,510 | $ | 50,072 | $ | 110,682 | |||||||||
December 31, 2019 | ||||||||||||||||
Single-Pay(1) | Unsecured Installment | Secured Installment | Open-End | Total | ||||||||||||
Current loans receivable | $ | 81,447 | $ | 117,682 | $ | 70,565 | $ | 285,452 | $ | 555,146 | ||||||
Delinquent loans receivable | — | 43,100 | 17,510 | 50,072 | 110,682 | |||||||||||
Total loans receivable | 81,447 | 160,782 | 88,075 | 335,524 | 665,828 | |||||||||||
Less: allowance for losses | (5,869 | ) | (35,587 | ) | (10,305 | ) | (55,074 | ) | (106,835 | ) | ||||||
Loans receivable, net | $ | 75,578 | $ | 125,195 | $ | 77,770 | $ | 280,450 | $ | 558,993 | ||||||
(1) Of the $81.4 million of Single-Pay receivables, $22.4 million relate to mandated extended payment options for certain Canada Single-Pay loans. |
December 31, 2019 | |||||||||||||
Unsecured Installment | Secured Installment | Open-End | Total | ||||||||||
Delinquent loans receivable | |||||||||||||
0-30 days past due | $ | 15,369 | $ | 8,039 | $ | 21,823 | $ | 45,231 | |||||
31-60 days past due | 12,403 | 4,885 | 13,191 | 30,479 | |||||||||
61 + days past due | 15,328 | 4,586 | 15,058 | 34,972 | |||||||||
Total delinquent loans receivable | $ | 43,100 | $ | 17,510 | $ | 50,072 | $ | 110,682 |
September 30, 2020 | ||||||||||||||||||||
Unsecured Installment | Secured Installment | Total | ||||||||||||||||||
Current loans receivable Guaranteed by the Company | $ | 32,869 | $ | 786 | $ | 33,655 | ||||||||||||||
Delinquent loans receivable Guaranteed by the Company | 5,953 | 160 | 6,113 | |||||||||||||||||
Total loans receivable Guaranteed by the Company | 38,822 | 946 | 39,768 | |||||||||||||||||
Less: Liability for losses on CSO lender-owned consumer loans | (6,130) | (68) | (6,198) | |||||||||||||||||
Loans receivable Guaranteed by the Company, net | $ | 32,692 | $ | 878 | $ | 33,570 |
March 31, 2020 | ||||||||||
Unsecured Installment | Secured Installment | Total | ||||||||
Current loans receivable guaranteed by the Company | $ | 44,865 | $ | 1,509 | $ | 46,374 | ||||
Delinquent loans receivable guaranteed by the Company | 9,232 | 311 | 9,543 | |||||||
Total loans receivable guaranteed by the Company | 54,097 | 1,820 | 55,917 | |||||||
Less: Liability for losses on CSO lender-owned consumer loans | (9,142 | ) | (47 | ) | (9,189 | ) | ||||
Loans receivable guaranteed by the Company, net | $ | 44,955 | $ | 1,773 | $ | 46,728 |
September 30, 2020 | ||||||||||||||
Unsecured Installment | Secured Installment | Total | ||||||||||||
Delinquent loans receivable | ||||||||||||||
0-30 days past due | $ | 5,404 | $ | 111 | $ | 5,515 | ||||||||
31-60 days past due | 433 | 9 | 442 | |||||||||||
61+ days past due | 116 | 40 | 156 | |||||||||||
Total delinquent loans receivable | $ | 5,953 | $ | 160 | $ | 6,113 | ||||||||
December 31, 2019 | ||||||||||||||||||||
Unsecured Installment | Secured Installment | Total | ||||||||||||||||||
Current loans receivable Guaranteed by the Company | $ | 61,840 | $ | 1,944 | $ | 63,784 | ||||||||||||||
Delinquent loans receivable Guaranteed by the Company | 12,477 | 392 | 12,869 | |||||||||||||||||
Total loans receivable Guaranteed by the Company | 74,317 | 2,336 | 76,653 | |||||||||||||||||
Less: Liability for losses on CSO lender-owned consumer loans | (10,553) | (70) | (10,623) | |||||||||||||||||
Loans receivable Guaranteed by the Company, net | $ | 63,764 | $ | 2,266 | $ | 66,030 |
December 31, 2019 | ||||||||||||||
Unsecured Installment | Secured Installment | Total | ||||||||||||
Delinquent loans receivable | ||||||||||||||
0-30 days past due | $ | 10,392 | $ | 326 | $ | 10,718 | ||||||||
31-60 days past due | 1,256 | 40 | 1,296 | |||||||||||
61 + days past due | 829 | 26 | 855 | |||||||||||
Total delinquent loans receivable | $ | 12,477 | $ | 392 | $ | 12,869 |
March 31, 2020 | ||||||||||
Unsecured Installment | Secured Installment | Total | ||||||||
Delinquent loans receivable | ||||||||||
0-30 days past due | $ | 7,589 | $ | 255 | $ | 7,844 | ||||
31-60 days past due | 939 | 32 | 971 | |||||||
61+ days past due | 704 | 24 | 728 | |||||||
Total delinquent loans receivable | $ | 9,232 | $ | 311 | $ | 9,543 |
December 31, 2019 | ||||||||||
Unsecured Installment | Secured Installment | Total | ||||||||
Current loans receivable guaranteed by the Company | $ | 61,840 | $ | 1,944 | $ | 63,784 | ||||
Delinquent loans receivable guaranteed by the Company | 12,477 | 392 | 12,869 | |||||||
Total loans receivable guaranteed by the Company | 74,317 | 2,336 | 76,653 | |||||||
Less: Liability for losses on CSO lender-owned consumer loans | (10,553 | ) | (70 | ) | (10,623 | ) | ||||
Loans receivable guaranteed by the Company, net | $ | 63,764 | $ | 2,266 | $ | 66,030 |
December 31, 2019 | ||||||||||
Unsecured Installment | Secured Installment | Total | ||||||||
Delinquent loans receivable | ||||||||||
0-30 days past due | $ | 10,392 | $ | 326 | $ | 10,718 | ||||
31-60 days past due | 1,256 | 40 | 1,296 | |||||||
61 + days past due | 829 | 26 | 855 | |||||||
Total delinquent loans receivable | $ | 12,477 | $ | 392 | $ | 12,869 |
Three Months Ended March 31, 2020 | ||||||||||||||||||
Single-Pay | Unsecured Installment | Secured Installment | Open-End | Other | Total | |||||||||||||
Balance, beginning of period | $ | 5,869 | $ | 35,587 | $ | 10,305 | $ | 55,074 | $ | — | $ | 106,835 | ||||||
Charge-offs | (40,521 | ) | (38,558 | ) | (13,110 | ) | (43,509 | ) | (1,279 | ) | (136,977 | ) | ||||||
Recoveries | 30,004 | 5,783 | 2,909 | 6,411 | 575 | 45,682 | ||||||||||||
Net charge-offs | (10,517 | ) | (32,775 | ) | (10,201 | ) | (37,098 | ) | (704 | ) | (91,295 | ) | ||||||
Provision for losses | 9,639 | 26,182 | 9,622 | 40,991 | 704 | 87,138 | ||||||||||||
Effect of foreign currency translation | (298 | ) | (29 | ) | — | (2,509 | ) | — | (2,836 | ) | ||||||||
Balance, end of period | $ | 4,693 | $ | 28,965 | $ | 9,726 | $ | 56,458 | $ | — | $ | 99,842 | ||||||
Allowance for loan losses as a percentage of gross loan receivables | 8.6 | % | 23.5 | % | 13.4 | % | 18.0 | % | N/A | 17.7 | % |
Three Months Ended March 31, 2020 | |||||||||
Unsecured Installment | Secured Installment | Total | |||||||
Balance, beginning of period | $ | 10,553 | $ | 70 | $ | 10,623 | |||
Charge-offs | (41,511 | ) | (862 | ) | (42,373 | ) | |||
Recoveries | 13,762 | 779 | 14,541 | ||||||
Net charge-offs | (27,749 | ) | (83 | ) | (27,832 | ) | |||
Provision for losses | 26,338 | 60 | 26,398 | ||||||
Balance, end of period | $ | 9,142 | $ | 47 | $ | 9,189 |
Three Months Ended September 30, 2020 | ||||||||||||||||||||
Single-Pay | Unsecured Installment | Secured Installment | Open-End | Other | Total | |||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||
Balance, beginning of period | $ | 2,802 | $ | 18,798 | $ | 7,883 | $ | 47,319 | $ | 0 | $ | 76,802 | ||||||||
Charge-offs | (21,473) | (14,781) | (6,648) | (22,781) | (972) | (66,655) | ||||||||||||||
Recoveries | 17,034 | 5,186 | 2,635 | 4,618 | 498 | 29,971 | ||||||||||||||
Net charge-offs | (4,439) | (9,595) | (4,013) | (18,163) | (474) | (36,684) | ||||||||||||||
Provision for losses | 4,799 | 9,647 | 3,239 | 21,655 | 474 | 39,814 | ||||||||||||||
Effect of foreign currency translation | 35 | 9 | 0 | 606 | 0 | 650 | ||||||||||||||
Balance, end of period | $ | 3,197 | $ | 18,859 | $ | 7,109 | $ | 51,417 | $ | 0 | $ | 80,582 | ||||||||
Liability for losses on CSO lender-owned consumer loans: | ||||||||||||||||||||
Balance, beginning of period | $ | 0 | $ | 5,128 | $ | 36 | $ | 0 | $ | 0 | $ | 5,164 | ||||||||
Increase in liability | 0 | (1,002) | (32) | 0 | 0 | (1,034) | ||||||||||||||
Balance, end of period | $ | — | $ | 6,130 | $ | 68 | $ | 0 | $ | 0 | $ | 6,198 |
Three Months Ended March 31, 2020 | ||||||||||||||||||
Single-Pay | Unsecured Installment | Secured Installment | Open-End | Other | Total | |||||||||||||
Balance, beginning of period | $ | 5,869 | $ | 46,140 | $ | 10,375 | $ | 55,074 | $ | — | $ | 117,458 | ||||||
Charge-offs | (40,521 | ) | (80,069 | ) | (13,972 | ) | (43,509 | ) | (1,279 | ) | (179,350 | ) | ||||||
Recoveries | 30,004 | 19,545 | 3,688 | 6,411 | 575 | 60,223 | ||||||||||||
Net charge-offs | (10,517 | ) | (60,524 | ) | (10,284 | ) | (37,098 | ) | (704 | ) | (119,127 | ) | ||||||
Provision for losses | 9,639 | 52,520 | 9,682 | 40,991 | 704 | 113,536 | ||||||||||||
Effect of foreign currency translation | (298 | ) | (29 | ) | — | (2,509 | ) | — | (2,836 | ) | ||||||||
Balance, end of period | $ | 4,693 | $ | 38,107 | $ | 9,773 | $ | 56,458 | $ | — | $ | 109,031 |
Three Months Ended September 30, 2019 | ||||||||||||||||||||
Single-Pay | Unsecured Installment | Secured Installment | Open-End | Other | Total | |||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||
Balance, beginning of period | $ | 4,941 | $ | 35,223 | $ | 9,996 | $ | 51,717 | $ | 0 | $ | 101,877 | ||||||||
Charge-offs | (40,512) | (34,252) | (10,592) | (31,993) | (1,382) | (118,731) | ||||||||||||||
Recoveries | 26,599 | 5,279 | 2,445 | 3,791 | 845 | 38,959 | ||||||||||||||
Net charge-offs | (13,913) | (28,973) | (8,147) | (28,202) | (537) | (79,772) | ||||||||||||||
Provision for losses | 14,736 | 31,891 | 8,514 | 31,220 | 537 | 86,898 | ||||||||||||||
Effect of foreign currency translation | (102) | (14) | 0 | (502) | 0 | (618) | ||||||||||||||
Balance, end of period | $ | 5,662 | $ | 38,127 | $ | 10,363 | $ | 54,233 | $ | 0 | $ | 108,385 | ||||||||
Liability for losses on CSO lender-owned consumer loans: | ||||||||||||||||||||
Balance, beginning of period | $ | 0 | $ | 9,433 | $ | 71 | $ | 0 | $ | 0 | $ | 9,504 | ||||||||
(Increase) / decrease in liability | 0 | (748) | 3 | 0 | 0 | (745) | ||||||||||||||
Balance, end of period | $ | 0 | $ | 10,181 | $ | 68 | $ | 0 | $ | 0 | $ | 10,249 |
Three Months Ended March 31, 2019 | ||||||||||||||||||
Single-Pay | Unsecured Installment | Secured Installment | Open-End | Other | Total | |||||||||||||
Balance, beginning of period | $ | 4,189 | $ | 37,716 | $ | 12,191 | $ | 19,901 | $ | — | $ | 73,997 | ||||||
Charge-offs | (36,521 | ) | (44,237 | ) | (12,671 | ) | (3,638 | ) | (1,351 | ) | (98,418 | ) | ||||||
Recoveries | 27,911 | 6,318 | 3,123 | 5,159 | 898 | 43,409 | ||||||||||||
Net charge-offs | (8,610 | ) | (37,919 | ) | (9,548 | ) | 1,521 | (453 | ) | (55,009 | ) | |||||||
Provision for losses | 8,268 | 33,845 | 7,153 | 25,317 | 453 | 75,036 | ||||||||||||
Effect of foreign currency translation | 50 | 24 | — | 224 | — | 298 | ||||||||||||
Balance, end of period | $ | 3,897 | $ | 33,666 | $ | 9,796 | $ | 46,963 | $ | — | $ | 94,322 | ||||||
Allowance for loan losses as a percentage of gross loan receivables | 5.6 | % | 20.8 | % | 12.1 | % | 19.5 | % | N/A | 17.0 | % |
Three Months Ended March 31, 2019 | |||||||||
Unsecured Installment | Secured Installment | Total | |||||||
Balance, beginning of period | $ | 11,582 | $ | 425 | $ | 12,007 | |||
Charge-offs | (40,980 | ) | (1,076 | ) | (42,056 | ) | |||
Recoveries | 10,560 | 802 | 11,362 | ||||||
Net charge-offs | (30,420 | ) | (274 | ) | (30,694 | ) | |||
Provision for losses | 27,422 | (73 | ) | 27,349 | |||||
Balance, end of period | $ | 8,584 | $ | 78 | $ | 8,662 |
Nine Months Ended September 30, 2020 | ||||||||||||||||||||
Single-Pay | Unsecured Installment | Secured Installment | Open-End | Other | Total | |||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||
Balance, beginning of period | $ | 5,869 | $ | 35,587 | $ | 10,305 | $ | 55,074 | $ | 0 | $ | 106,835 | ||||||||
Charge-offs | (83,162) | (83,468) | (31,505) | (104,074) | (3,000) | (305,209) | ||||||||||||||
Recoveries | 68,804 | 17,982 | 8,505 | 17,129 | 1,475 | 113,895 | ||||||||||||||
Net charge-offs | (14,358) | (65,486) | (23,000) | (86,945) | (1,525) | (191,314) | ||||||||||||||
Provision for losses | 11,850 | 48,766 | 19,804 | 83,987 | 1,525 | 165,932 | ||||||||||||||
Effect of foreign currency translation | (164) | (8) | 0 | (699) | 0 | (871) | ||||||||||||||
Balance, end of period | $ | 3,197 | $ | 18,859 | $ | 7,109 | $ | 51,417 | $ | 0 | $ | 80,582 | ||||||||
Liability for losses on CSO lender-owned consumer loans: | ||||||||||||||||||||
Balance, beginning of period | $ | 0 | $ | 10,553 | $ | 70 | $ | 0 | $ | 0 | $ | 10,623 | ||||||||
Decrease in liability | 0 | 4,423 | 2 | 0 | 0 | 4,425 | ||||||||||||||
Balance, end of period | $ | 0 | $ | 6,130 | $ | 68 | $ | 0 | $ | 0 | $ | 6,198 |
Nine Months Ended September 30, 2019 | ||||||||||||||||||||
Single-Pay | Unsecured Installment | Secured Installment | Open-End | Other | Total | |||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||
Balance, beginning of period | $ | 4,189 | $ | 37,716 | $ | 12,191 | $ | 19,901 | $ | 0 | $ | 73,997 | ||||||||
Charge-offs | (112,792) | (115,825) | (33,558) | (66,319) | (4,075) | (332,569) | ||||||||||||||
Recoveries | 78,811 | 16,963 | 8,261 | 14,487 | 2,565 | 121,087 | ||||||||||||||
Net charge-offs | (33,981) | (98,862) | (25,297) | (51,832) | (1,510) | (211,482) | ||||||||||||||
Provision for losses | 35,450 | 99,250 | 23,469 | 85,910 | 1,510 | 245,589 | ||||||||||||||
Effect of foreign currency translation | 4 | 23 | 0 | 254 | 0 | 281 | ||||||||||||||
Balance, end of period | $ | 5,662 | $ | 38,127 | $ | 10,363 | $ | 54,233 | $ | 0 | $ | 108,385 | ||||||||
Liability for losses on CSO lender-owned consumer loans: | ||||||||||||||||||||
Balance, beginning of period | $ | 0 | $ | 11,582 | $ | 425 | $ | 0 | $ | 0 | $ | 12,007 | ||||||||
Decrease in liability | 0 | 1,401 | 357 | 0 | 0 | 1,758 | ||||||||||||||
Balance, end of period | $ | 0 | $ | 10,181 | $ | 68 | $ | 0 | $ | 0 | $ | 10,249 |
As of September 30, 2020 | ||||||||||||||||||||
Current TDR gross receivables | $ | 14,085 | ||||||||||||||||||
Delinquent TDR gross receivables | 6,547 | |||||||||||||||||||
Total TDR gross receivables | 20,632 | |||||||||||||||||||
Less: Impairment included in the allowance for loan losses | (6,622) | |||||||||||||||||||
Less: Additional allowance | (2,086) | |||||||||||||||||||
Outstanding TDR receivables, net of impairment | $ | 11,924 |
Three Months Ended March 31, 2019 | ||||||||||||||||||
Single-Pay | Unsecured Installment | Secured Installment | Open-End | Other | Total | |||||||||||||
Balance, beginning of period | $ | 4,189 | $ | 49,298 | $ | 12,616 | $ | 19,901 | $ | — | $ | 86,004 | ||||||
Charge-offs | (36,521 | ) | (85,217 | ) | (13,747 | ) | (3,638 | ) | (1,351 | ) | (140,474 | ) | ||||||
Recoveries | 27,911 | 16,878 | 3,925 | 5,159 | 898 | 54,771 | ||||||||||||
Net charge-offs | (8,610 | ) | (68,339 | ) | (9,822 | ) | 1,521 | (453 | ) | (85,703 | ) | |||||||
Provision for losses | 8,268 | 61,267 | 7,080 | 25,317 | 453 | 102,385 | ||||||||||||
Effect of foreign currency translation | 50 | 24 | — | 224 | — | 298 | ||||||||||||
Balance, end of period | $ | 3,897 | $ | 42,250 | $ | 9,874 | $ | 46,963 | $ | — | $ | 102,984 |
Three Months Ended September 30, 2020 | Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||
Pre-modification TDR loans receivable | $ | 9,007 | $ | 37,948 | ||||||||||||||||||||||
Post-modification TDR loans receivable | 8,186 | 34,195 | ||||||||||||||||||||||||
Total concessions included in gross charge-offs | $ | 821 | $ | 3,753 |
Three Months Ended September 30, 2020 | Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||
Average outstanding TDR loans receivable (1) | $ | 20,484 | $ | 21,011 | ||||||||||||||||||||||
Interest income recognized | 6,510 | 10,907 | ||||||||||||||||||||||||
Number of TDR loans | 5,361 | 22,190 | ||||||||||||||||||||||||
(1) For the three months ended September 30, 2020, the average is calculated using a simple average of the ending TDR balance as of June 30, 2020 and September 30, 2020. For the nine months ended September 30, 2020, the average is calculated based on the amount immediately after the loan was classified as a TDR and the ending TDR balance as of September 30, 2020 as there were 0 TDRs prior to April 1, 2020. | ||||||||||||||||||||||||||
September 30, 2020 | December 31, 2019 | |||||||||||||
8.25% Senior Secured Notes | $ | 679,566 | $ | 678,323 | ||||||||||
Non-Recourse U.S. SPV Facility | 28,884 | 0 | ||||||||||||
Non-Recourse Canada SPV Facility | 91,010 | 112,221 | ||||||||||||
Debt | $ | 799,460 | $ | 790,544 |
March 31, 2020 | December 31, 2019 | |||||||
8.25% Senior Secured Notes (due 2025) | $ | 678,727 | $ | 678,323 | ||||
Non-Recourse Canada SPV Facility | 84,724 | 112,221 | ||||||
Senior Revolver | 25,000 | — | ||||||
Debt | $ | 788,451 | $ | 790,544 |
Number of RSUs | ||||||||||||||
Time-Based | Market-Based | Weighted Average Grant Date Fair Value per Share | ||||||||||||
December 31, 2019 | 1,061,753 | 394,861 | $ | 11.47 | ||||||||||
Granted | 679,413 | 368,539 | 10.42 | |||||||||||
Vested | (308,140) | 0 | 11.34 | |||||||||||
Forfeited | (24,025) | (4,687) | 11.99 | |||||||||||
September 30, 2020 | 1,409,001 | 758,713 | $ | 10.97 |
Number of RSUs | ||||||||
Time-Based | Market-Based | Weighted Average Grant Date Fair Value per Share | ||||||
December 31, 2019 | 1,061,753 | 394,861 | $ | 11.47 | ||||
Granted | 571,773 | 368,539 | 10.55 | |||||
Vested | (197,859 | ) | — | 11.39 | ||||
Forfeited | (12,756 | ) | (2,613 | ) | 12.07 | |||
March 31, 2020 | 1,422,911 | 760,787 | $ | 11.08 |
Estimated Fair Value | |||||||||||||||||
Carrying Value September 30, 2020 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Financial assets: | |||||||||||||||||
Cash Surrender Value of Life Insurance | $ | 6,757 | $ | 6,757 | $ | 0 | $ | 0 | $ | 6,757 | |||||||
Financial liabilities: | |||||||||||||||||
Non-qualified deferred compensation plan | $ | 4,474 | $ | 4,474 | $ | 0 | $ | 0 | $ | 4,474 |
Estimated Fair Value | |||||||||||||||
Carrying Value March 31, 2020 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Financial assets: | |||||||||||||||
Cash Surrender Value of Life Insurance | $ | 5,696 | $ | 5,696 | $ | — | $ | — | $ | 5,696 | |||||
Financial liabilities: | |||||||||||||||
Non-qualified deferred compensation plan | $ | 3,818 | $ | 3,818 | $ | — | $ | — | $ | 3,818 |
Estimated Fair Value | |||||||||||||||||
Carrying Value December 31, 2019 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Financial assets: | |||||||||||||||||
Cash Surrender Value of Life Insurance | $ | 6,171 | $ | 6,171 | $ | 0 | $ | 0 | $ | 6,171 | |||||||
Financial liabilities: | |||||||||||||||||
Non-qualified deferred compensation plan | $ | 4,666 | $ | 4,666 | $ | 0 | $ | 0 | $ | 4,666 | |||||||
Estimated Fair Value | |||||||||||||||
Carrying Value December 31, 2019 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Financial assets: | |||||||||||||||
Cash Surrender Value of Life Insurance | $ | 6,171 | $ | 6,171 | $ | — | $ | — | $ | 6,171 | |||||
Financial liabilities: | |||||||||||||||
Non-qualified deferred compensation plan | $ | 4,666 | $ | 4,666 | $ | — | $ | — | $ | 4,666 |
Estimated Fair Value | |||||||||||||||||
Carrying Value September 30, 2020 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents | $ | 207,071 | $ | 207,071 | $ | 0 | $ | 0 | $ | 207,071 | |||||||
Restricted cash | 62,527 | 62,527 | 0 | 0 | 62,527 | ||||||||||||
Loans receivable, net | 416,860 | 0 | 0 | 416,860 | 416,860 | ||||||||||||
Financial liabilities: | |||||||||||||||||
Liability for losses on CSO lender-owned consumer loans | $ | 6,198 | $ | 0 | $ | 0 | $ | 6,198 | $ | 6,198 | |||||||
8.25% Senior Secured Notes | 679,566 | 0 | 569,137 | 0 | 569,137 | ||||||||||||
Non-Recourse U.S. SPV facility | 28,884 | 0 | 0 | 35,206 | 35,206 | ||||||||||||
Non-Recourse Canada SPV facility | 91,010 | 0 | 0 | 93,096 | 93,096 | ||||||||||||
Estimated Fair Value | |||||||||||||||
Carrying Value March 31, 2020 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Financial assets: | |||||||||||||||
Cash | $ | 138,714 | $ | 138,714 | $ | — | $ | — | $ | 138,714 | |||||
Restricted cash | 41,527 | 41,527 | — | — | 41,527 | ||||||||||
Loans receivable, net | 464,595 | — | — | 464,595 | 464,595 | ||||||||||
Equity method investment | 8,450 | — | — | 8,450 | 8,450 | ||||||||||
Financial liabilities: | |||||||||||||||
Liability for losses on CSO lender-owned consumer loans | $ | 9,189 | $ | — | $ | — | $ | 9,189 | $ | 9,189 | |||||
8.25% Senior Secured Notes | 678,727 | — | 478,503 | — | 478,503 | ||||||||||
Non-Recourse Canada SPV facility | 84,724 | — | — | 87,365 | 87,365 | ||||||||||
Senior Revolver | 25,000 | — | — | 25,000 | 25,000 |
Estimated Fair Value | |||||||||||||||||
Carrying Value December 31, 2019 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents | $ | 75,242 | $ | 75,242 | $ | 0 | $ | 0 | $ | 75,242 | |||||||
Restricted cash | 34,779 | 34,779 | 0 | 0 | 34,779 | ||||||||||||
Loans receivable, net | 558,993 | 0 | 0 | 558,993 | 558,993 | ||||||||||||
Financial liabilities: | |||||||||||||||||
Liability for losses on CSO lender-owned consumer loans | $ | 10,623 | $ | 0 | $ | 0 | $ | 10,623 | $ | 10,623 | |||||||
8.25% Senior Secured Notes | 678,323 | 0 | 596,924 | 0 | 596,924 | ||||||||||||
Non-Recourse Canada SPV facility | 112,221 | 0 | 0 | 115,243 | 115,243 | ||||||||||||
Estimated Fair Value | |||||||||||||||
Carrying Value December 31, 2019 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Financial assets: | |||||||||||||||
Cash | $ | 75,242 | $ | 75,242 | $ | — | $ | — | $ | 75,242 | |||||
Restricted cash | 34,779 | 34,779 | — | — | 34,779 | ||||||||||
Loans receivable, net | 558,993 | — | — | 558,993 | 558,993 | ||||||||||
Equity method investment | 10,068 | — | — | 10,068 | 10,068 | ||||||||||
Financial liabilities: | |||||||||||||||
Liability for losses on CSO lender-owned consumer loans | $ | 10,623 | $ | — | $ | — | $ | 10,623 | $ | 10,623 | |||||
8.25% Senior Secured Notes | 678,323 | — | 596,924 | — | 596,924 | ||||||||||
Non-Recourse Canada SPV facility | 112,221 | — | — | 115,243 | 115,243 |
Equity Method Investment | Measurement Alternative (1) | |||||||||||||
Balance at December 31, 2019 | $ | 10,068 | $ | — | ||||||||||
Equity method (loss) - Q1 2020 | (1,618) | — | ||||||||||||
Balance at March 31, 2020 | 8,450 | — | ||||||||||||
Equity method income - Q2 2020 | 741 | |||||||||||||
Balance at June 30, 2020 | 9,191 | 0 | ||||||||||||
Equity method income - Q3 2020 | 3,530 | 0 | ||||||||||||
Accounting policy change for certain securities from equity method investment to cost less impairment | (12,452) | 12,452 | ||||||||||||
Purchases of common stock warrants and preferred shares | 4,030 | 7,157 | ||||||||||||
Balance at September 30, 2020 | $ | 4,299 | $ | 19,609 | ||||||||||
Classification as of December 31, 2019 | Level 3, not carried at fair value | N/A | ||||||||||||
Classification as of September 30, 2020 | Level 3, not carried at fair value | Level 3, carried at fair value | ||||||||||||
(1) The Company elected to measure this equity security without a readily determinable fair value that does not qualify for the practical expedient to estimate fair value at its cost minus impairment. If the Company identifies an observable price changes in orderly transactions for the identical or a similar investment of the same issuer, it will measure the equity security at fair value as of the date that the observable transaction occurred. |
Common Stock | Treasury Stock | Paid-in capital | Retained Earnings (Deficit) | AOCI (1) | Total Stockholders' Equity | Common Stock | Treasury Stock, at cost | Paid-in capital | Retained Earnings (Deficit) | AOCI (1) | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares Outstanding | Par Value | Shares Outstanding | Par Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2019 | 41,156,224 | $ | 9 | $ | (72,343 | ) | $ | 68,087 | $ | 93,423 | $ | (38,663 | ) | $ | 50,513 | Balances at December 31, 2019 | 41,156,224 | $ | 9 | $ | (72,343) | $ | 68,087 | $ | 93,423 | $ | (38,663) | $ | 50,513 | |||||||||||||||||||||||||||||||||||||||
Net income from continuing operations | — | — | — | — | 36,013 | — | 36,013 | Net income from continuing operations | — | — | — | — | 36,013 | — | 36,013 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income from discontinued operations | — | — | — | — | 292 | — | 292 | Net income from discontinued operations | — | — | — | — | 292 | — | 292 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | (22,193 | ) | (22,193 | ) | Foreign currency translation adjustment | — | — | — | — | — | (22,193) | (22,193) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends | — | — | — | — | (2,256 | ) | — | — | (2,256 | ) | Dividends | — | — | — | — | (2,256) | — | — | (2,256) | |||||||||||||||||||||||||||||||||||||||||||||||||
Share based compensation expense | — | — | — | 3,194 | — | — | 3,194 | Share based compensation expense | — | — | — | 3,194 | — | — | 3,194 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from exercise of stock options | 42,094 | — | — | 126 | — | — | 126 | Proceeds from exercise of stock options | 42,094 | — | — | 126 | — | — | 126 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | (540,762 | ) | — | (5,509 | ) | — | — | — | (5,509 | ) | Repurchase of common stock | (540,762) | — | (5,509) | — | — | — | (5,509) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued for RSU's vesting, net of shares withheld and withholding paid for employee taxes | 121,891 | — | — | (609 | ) | — | — | (609 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued for RSUs vesting, net of shares withheld and withholding paid for employee taxes | Common stock issued for RSUs vesting, net of shares withheld and withholding paid for employee taxes | 121,891 | — | — | (609) | — | — | (609) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2020 | 40,779,447 | $ | 9 | $ | (77,852 | ) | $ | 70,798 | $ | 127,472 | $ | (60,856 | ) | $ | 59,571 | Balances at March 31, 2020 | 40,779,447 | $ | 9 | $ | (77,852) | $ | 70,798 | $ | 127,472 | $ | (60,856) | $ | 59,571 | |||||||||||||||||||||||||||||||||||||||
Net income from continuing operations | Net income from continuing operations | — | — | — | — | 21,080 | — | 21,080 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income from discontinued operations | Net income from discontinued operations | — | — | — | — | 993 | — | 993 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | Foreign currency translation adjustment | — | — | — | — | — | 10,261 | 10,261 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends | Dividends | — | — | — | — | (2,244) | — | (2,244) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share based compensation expense | Share based compensation expense | — | — | — | 3,310 | — | — | 3,310 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued for RSUs vesting, net of shares withheld and withholding paid for employee taxes | Common stock issued for RSUs vesting, net of shares withheld and withholding paid for employee taxes | 105,098 | — | — | (29) | — | — | (29) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at June 30, 2020 | Balances at June 30, 2020 | 40,884,545 | $ | 9 | $ | (77,852) | $ | 74,079 | $ | 147,301 | $ | (50,595) | $ | 92,942 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income from continuing operations | Net income from continuing operations | — | — | — | — | 12,881 | — | 12,881 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | Foreign currency translation adjustment | — | — | — | — | — | 5,591 | 5,591 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends | Dividends | — | — | — | — | (2,250) | — | (2,250) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share based compensation expense | Share based compensation expense | — | — | — | 3,392 | — | — | 3,392 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued for RSUs vesting, net of shares withheld and withholding paid for employee taxes | Common stock issued for RSUs vesting, net of shares withheld and withholding paid for employee taxes | 568 | — | — | (3) | — | — | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | Balance at September 30, 2020 | 40,885,113 | $ | 9 | $ | (77,852) | $ | 77,468 | $ | 157,932 | $ | (45,004) | $ | 112,553 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Accumulated other comprehensive income (loss) | (1) Accumulated other comprehensive income (loss) | (1) Accumulated other comprehensive income (loss) |
Common Stock | Treasury Stock | Paid-in capital | Retained Earnings (Deficit) | AOCI (1) | Total Stockholders' Equity (Deficit) | |||||||||||||||||||||
Shares Outstanding | Par Value | |||||||||||||||||||||||||
Balances at December 31, 2018 | 46,412,231 | $ | 9 | $ | — | $ | 60,015 | $ | (18,065 | ) | $ | (61,060 | ) | $ | (19,101 | ) | ||||||||||
Net income from continuing operations | — | — | — | — | 28,673 | — | 28,673 | |||||||||||||||||||
Net income from discontinued operations | — | — | — | — | 8,375 | — | 8,375 | |||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | 16,695 | 16,695 | |||||||||||||||||||
Share based compensation expense | — | — | — | 2,172 | — | — | 2,172 | |||||||||||||||||||
Proceeds from exercise of stock options | 7,888 | — | — | 40 | — | — | 40 | |||||||||||||||||||
Common stock issued for RSU's vesting, net of shares withheld and withholding paid for employee taxes | 11,170 | — | — | (110 | ) | — | — | (110 | ) | |||||||||||||||||
Balances at March 31, 2019 | 46,431,289 | $ | 9 | $ | — | $ | 62,117 | $ | 18,983 | $ | (44,365 | ) | $ | 36,744 | ||||||||||||
(1) Accumulated other comprehensive income (loss) |
Common Stock | Treasury Stock, at cost | Paid-in capital | Retained Earnings (Deficit) | AOCI (1) | Total Stockholders' Equity (Deficit) | ||||||||||||||||||||||||||||||||||||
Shares Outstanding | Par Value | ||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2018 | 46,412,231 | $ | 9 | $ | 0 | $ | 60,015 | $ | (18,065) | $ | (61,060) | $ | (19,101) | ||||||||||||||||||||||||||||
Net income from continuing operations | — | — | — | — | 28,673 | — | 28,673 | ||||||||||||||||||||||||||||||||||
Net income from discontinued operations | — | — | — | — | 8,375 | — | 8,375 | ||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | 16,695 | 16,695 | ||||||||||||||||||||||||||||||||||
Share based compensation expense | — | — | — | 2,172 | — | — | 2,172 | ||||||||||||||||||||||||||||||||||
Proceeds from exercise of stock options | 7,888 | — | — | 40 | — | — | 40 | ||||||||||||||||||||||||||||||||||
Common stock issued for RSUs vesting, net of shares withheld and withholding paid for employee taxes | 11,170 | — | — | (110) | — | — | (110) | ||||||||||||||||||||||||||||||||||
Balances at March 31, 2019 | 46,431,289 | $ | 9 | $ | 0 | $ | 62,117 | $ | 18,983 | $ | (44,365) | $ | 36,744 | ||||||||||||||||||||||||||||
Net income from continuing operations | — | — | — | — | 17,667 | — | 17,667 | ||||||||||||||||||||||||||||||||||
Net loss from discontinued operations | — | — | — | — | (834) | — | (834) | ||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | 3,635 | 3,635 | ||||||||||||||||||||||||||||||||||
Share based compensation expense | — | — | — | 2,644 | — | — | 2,644 | ||||||||||||||||||||||||||||||||||
Proceeds from exercise of stock options | 4,908 | — | — | 29 | — | — | 29 | ||||||||||||||||||||||||||||||||||
Repurchase of common stock | (244,200) | — | (2,507) | — | — | — | (2,507) | ||||||||||||||||||||||||||||||||||
Common stock issued for RSUs vesting, net of shares withheld and withholding paid for employee taxes | 63,285 | — | — | — | — | — | 0 | ||||||||||||||||||||||||||||||||||
Balances at June 30, 2019 | 46,255,282 | $ | 9 | $ | (2,507) | $ | 64,790 | $ | 35,816 | $ | (40,730) | $ | 57,378 | ||||||||||||||||||||||||||||
Net income from continuing operations | — | — | — | — | 27,987 | — | 27,987 | ||||||||||||||||||||||||||||||||||
Net loss from discontinued operations | — | — | — | — | (598) | — | (598) | ||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | (1,954) | (1,954) | ||||||||||||||||||||||||||||||||||
Share based compensation expense | — | — | — | 2,771 | — | — | 2,771 | ||||||||||||||||||||||||||||||||||
Proceeds from exercise of stock options | 3,924 | — | — | 18 | — | — | 18 | ||||||||||||||||||||||||||||||||||
Repurchase of common stock (2) | (3,912,041) | — | (50,557) | — | — | — | (50,557) | ||||||||||||||||||||||||||||||||||
Balances at September 30, 2019 | 42,347,165 | $ | 9 | $ | (53,064) | $ | 67,579 | $ | 63,205 | $ | (42,684) | $ | 35,045 | ||||||||||||||||||||||||||||
(1) Accumulated other comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||||
(2) Includes the repurchase of 2.0 million shares of common stock from FFL for $13.55 per share. See Note 18, "Share Repurchase Program" for additional information. |
Dividends Paid | |||||||||||||||||
Date of declaration | Stockholders of record | Date paid | Dividend per share | (in thousands) | |||||||||||||
Q1 2020 | February 5, 2020 | February 18, 2020 | March 2, 2020 | $ | 0.055 | $ | 2,247 | ||||||||||
Q2 2020 | April 30, 2020 | May 13, 2020 | May 27, 2020 | $ | 0.055 | $ | 2,243 | ||||||||||
Q3 2020 | August 3, 2020 | August 13, 2020 | August 24, 2020 | $ | 0.055 | $ | 2,249 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net income from continuing operations | $ | 12,881 | $ | 27,987 | $ | 69,974 | $ | 74,327 | |||||||||||||||
Net income (loss) from discontinued operations, net of tax | 0 | (598) | 1,285 | 6,943 | |||||||||||||||||||
Net income | $ | 12,881 | $ | 27,389 | $ | 71,259 | $ | 81,270 | |||||||||||||||
Weighted average common shares - basic | 40,885 | 44,422 | 40,838 | 45,759 | |||||||||||||||||||
Dilutive effect of stock options and restricted stock units | 890 | 1,588 | 822 | 1,128 | |||||||||||||||||||
Weighted average common shares - diluted | 41,775 | 46,010 | 41,660 | 46,887 | |||||||||||||||||||
Basic earnings (loss) per share: | |||||||||||||||||||||||
Continuing operations | $ | 0.32 | $ | 0.63 | $ | 1.71 | $ | 1.63 | |||||||||||||||
Discontinued operations | 0 | (0.01) | 0.03 | 0.15 | |||||||||||||||||||
Basic earnings per share | $ | 0.32 | $ | 0.62 | $ | 1.74 | $ | 1.78 | |||||||||||||||
Diluted earnings (loss) per share: | |||||||||||||||||||||||
Continuing operations | $ | 0.31 | $ | 0.61 | $ | 1.68 | $ | 1.59 | |||||||||||||||
Discontinued operations | 0 | (0.01) | 0.03 | 0.15 | |||||||||||||||||||
Diluted earnings per share | $ | 0.31 | $ | 0.60 | $ | 1.71 | $ | 1.74 | |||||||||||||||
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Net income from continuing operations | $ | 36,013 | $ | 28,673 | |||
Net income from discontinued operations, net of tax | 292 | 8,375 | |||||
Net income | $ | 36,305 | $ | 37,048 | |||
Weighted average common shares - basic | 40,817 | 46,424 | |||||
Dilutive effect of stock options and restricted stock units | 1,075 | 895 | |||||
Weighted average common shares - diluted | 41,892 | 47,319 | |||||
Basic earnings per share: | |||||||
Continuing operations | $ | 0.88 | $ | 0.62 | |||
Discontinued operations | 0.01 | 0.18 | |||||
Basic earnings per share | $ | 0.89 | $ | 0.80 | |||
Diluted earnings per share: | |||||||
Continuing operations | $ | 0.86 | $ | 0.61 | |||
Discontinued operations | 0.01 | 0.18 | |||||
Diluted earnings per share | $ | 0.87 | $ | 0.79 |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Cash paid for: | |||||||
Interest | $ | 31,184 | $ | 32,195 | |||
Income taxes, net of refunds | 1,065 | 1,456 | |||||
Non-cash investing activities: | |||||||
Property and equipment accrued in accounts payable | $ | 869 | $ | 349 |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Cash paid for: | |||||||||||
Interest | $ | 65,807 | $ | 65,627 | |||||||
Income taxes, net of refunds | 13,034 | 2,029 | |||||||||
Non-cash investing activities: | |||||||||||
Property and equipment accrued in accounts payable and accrued liabilities | $ | 466 | $ | 604 |
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
Revenues by segment: (1) | ||||||||
U.S. | $ | 221,768 | $ | 226,119 | ||||
Canada | 59,038 | 51,820 | ||||||
Consolidated revenue | $ | 280,806 | $ | 277,939 | ||||
Net revenues by segment: | ||||||||
U.S. | $ | 135,727 | $ | 141,139 | ||||
Canada | 31,543 | 34,415 | ||||||
Consolidated net revenue | $ | 167,270 | $ | 175,554 | ||||
Gross margin by segment: | ||||||||
U.S. | $ | 87,540 | $ | 89,803 | ||||
Canada | 12,159 | 15,694 | ||||||
Consolidated gross margin | $ | 99,699 | $ | 105,497 | ||||
Segment operating income (loss): | ||||||||
U.S. | $ | 33,426 | $ | 31,195 | ||||
Canada | 4,524 | 7,524 | ||||||
Consolidated operating profit | $ | 37,950 | $ | 38,719 | ||||
Expenditures for long-lived assets by segment: | ||||||||
U.S. | $ | 4,280 | $ | 2,430 | ||||
Canada | 553 | 689 | ||||||
Consolidated expenditures for long-lived assets | $ | 4,833 | $ | 3,119 | ||||
(1) For revenue by product, see Note 3, "Loans Receivable and Revenue." |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Revenues by segment: (1) | ||||||||||||||||||||||||||
U.S. | $ | 132,848 | $ | 237,069 | $ | 491,936 | $ | 673,234 | ||||||||||||||||||
Canada | 49,155 | 60,195 | 153,382 | 166,269 | ||||||||||||||||||||||
Consolidated revenue | $ | 182,003 | $ | 297,264 | $ | 645,318 | $ | 839,503 | ||||||||||||||||||
Net revenues by segment: | ||||||||||||||||||||||||||
U.S. | $ | 89,363 | $ | 134,072 | $ | 320,880 | $ | 392,705 | ||||||||||||||||||
Canada | 37,890 | 39,325 | $ | 105,459 | 108,536 | |||||||||||||||||||||
Consolidated net revenue | $ | 127,253 | $ | 173,397 | $ | 426,339 | $ | 501,241 | ||||||||||||||||||
Gross margin by segment: | ||||||||||||||||||||||||||
U.S. | $ | 43,384 | $ | 77,250 | $ | 187,784 | $ | 232,120 | ||||||||||||||||||
Canada | 20,186 | 19,389 | 51,984 | 51,197 | ||||||||||||||||||||||
Consolidated gross margin | $ | 63,570 | $ | 96,639 | $ | 239,768 | $ | 283,317 | ||||||||||||||||||
Segment operating (loss) income: | ||||||||||||||||||||||||||
U.S. | $ | (696) | $ | 28,092 | $ | 44,587 | $ | 76,316 | ||||||||||||||||||
Canada | 12,755 | 11,134 | 27,570 | 26,749 | ||||||||||||||||||||||
Consolidated operating income | $ | 12,059 | $ | 39,226 | $ | 72,157 | $ | 103,065 | ||||||||||||||||||
Expenditures for long-lived assets by segment: | ||||||||||||||||||||||||||
U.S. | $ | 2,273 | $ | 2,890 | $ | 6,801 | $ | 7,888 | ||||||||||||||||||
Canada | 67 | 216 | 764 | 1,382 | ||||||||||||||||||||||
Consolidated expenditures for long-lived assets | $ | 2,340 | $ | 3,106 | $ | 7,565 | $ | 9,270 | ||||||||||||||||||
(1) For revenue by product, see Note 3, "Loans Receivable and Revenue." |
September 30, 2020 | December 31, 2019 | |||||||||||||
U.S. | $ | 205,296 | $ | 363,453 | ||||||||||
Canada | 292,146 | 302,375 | ||||||||||||
Total gross loans receivable | $ | 497,442 | $ | 665,828 |
March 31, 2020 | December 31, 2019 | |||||||
U.S. | $ | 288,127 | $ | 363,453 | ||||
Canada | 276,310 | 302,375 | ||||||
Total gross loans receivable | $ | 564,437 | $ | 665,828 |
September 30, 2020 | December 31, 2019 | |||||||||||||
U.S. | $ | 38,047 | $ | 43,618 | ||||||||||
Canada | 23,634 | 27,193 | ||||||||||||
Total net long-lived assets | $ | 61,681 | $ | 70,811 |
March 31, 2020 | December 31, 2019 | |||||||
U.S. | $ | 42,536 | $ | 43,618 | ||||
Canada | 24,251 | 27,193 | ||||||
Total net long-lived assets | $ | 66,787 | $ | 70,811 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||
Operating lease costs: | |||||||||||||||||
Third-Party | $ | 8,567 | $ | 7,687 | $ | 22,947 | $ | 23,000 | |||||||||
Related-Party | 6 | 865 | 2,538 | 2,595 | |||||||||||||
Total operating lease costs | $ | 8,573 | $ | 8,552 | $ | 25,485 | $ | 25,595 | |||||||||
Operating cash flow - Operating leases | $ | 25,329 | $ | 26,001 | |||||||||||||
New ROU assets - Operating leases | $ | 10,885 | $ | 11,088 | |||||||||||||
Weighted average remaining lease term - Operating leases | 6.0 years | 6.3 years | |||||||||||||||
Weighted average discount rate - Operating leases | 10.1 | % | 10.3 | % |
Three Months Ended March 31, | ||||||
2020 | 2019 | |||||
Operating lease costs: | ||||||
Third-Party | $ | 7,626 | $ | 7,621 | ||
Related-Party | 864 | 847 | ||||
Total operating lease costs | $ | 8,490 | $ | 8,468 | ||
Operating cash flow - Operating leases | $ | 8,433 | $ | 8,615 | ||
New ROU assets - Operating leases | $ | 5,647 | $ | — | ||
Weighted average remaining lease term - Operating leases | 6.3 years | 6.1 years | ||||
Weighted average discount rate - Operating leases | 10.3 | % | 10.3 | % |
Third-Party | Related-Party | Total | ||||||||||||||||||
Remainder of 2020 | $ | 7,795 | $ | 926 | $ | 8,721 | ||||||||||||||
2021 | 29,593 | 3,768 | 33,361 | |||||||||||||||||
2022 | 26,682 | 3,665 | 30,347 | |||||||||||||||||
2023 | 21,803 | 1,320 | 23,123 | |||||||||||||||||
2024 | 16,799 | 965 | 17,764 | |||||||||||||||||
2025 | 12,227 | 865 | 13,092 | |||||||||||||||||
Thereafter | 31,155 | 2,665 | 33,820 | |||||||||||||||||
Total | 146,054 | 14,174 | 160,228 | |||||||||||||||||
Less: Imputed interest | (38,189) | (3,208) | (41,397) | |||||||||||||||||
Operating lease liabilities | $ | 107,865 | $ | 10,966 | $ | 118,831 | ||||||||||||||
Third-Party | Related-Party | Total | ||||||||||
Remainder of 2020 | $ | 22,437 | $ | 2,809 | $ | 25,246 | ||||||
2021 | 27,464 | 3,767 | 31,231 | |||||||||
2022 | 24,640 | 3,661 | 28,301 | |||||||||
2023 | 19,995 | 1,316 | 21,311 | |||||||||
2024 | 15,343 | 962 | 16,305 | |||||||||
2025 | 11,178 | 861 | 12,039 | |||||||||
Thereafter | 30,416 | 2,655 | 33,071 | |||||||||
Total | 151,473 | 16,031 | 167,504 | |||||||||
Less: Imputed interest | (41,963 | ) | (3,826 | ) | (45,789 | ) | ||||||
Operating lease liabilities | $ | 109,510 | $ | 12,205 | $ | 121,715 |
Three Months Ended March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
2020 | 2019(1) | 2020 | 2019 | 2020 | 2019(1) | |||||||||||||||||||||||||||||
Revenue | $ | — | $ | 6,957 | Revenue | $ | 0 | $ | 0 | $ | 0 | $ | 6,957 | |||||||||||||||||||||
Provision for losses | �� | 1,703 | Provision for losses | 0 | 0 | 0 | 1,703 | |||||||||||||||||||||||||||
Net revenue | — | 5,254 | Net revenue | 0 | 0 | 0 | 5,254 | |||||||||||||||||||||||||||
Cost of providing services | ||||||||||||||||||||||||||||||||||
Office | — | 246 | ||||||||||||||||||||||||||||||||
Other costs of providing services | — | 61 | ||||||||||||||||||||||||||||||||
Advertising | — | 775 | ||||||||||||||||||||||||||||||||
Total cost of providing services | — | 1,082 | Total cost of providing services | 0 | 0 | 0 | 1,082 | |||||||||||||||||||||||||||
Gross margin | — | 4,172 | Gross margin | 0 | 0 | 0 | 4,172 | |||||||||||||||||||||||||||
Operating (income) expense | Operating (income) expense | |||||||||||||||||||||||||||||||||
Corporate, district and other expenses | — | 3,810 | Corporate, district and other expenses | 0 | 0 | 0 | 3,806 | |||||||||||||||||||||||||||
Interest income | — | (4 | ) | |||||||||||||||||||||||||||||||
(Gain) loss on disposition | (390 | ) | 39,414 | (Gain) loss on disposition | 0 | 0 | (1,714) | 39,414 | ||||||||||||||||||||||||||
Total operating (income) expense | (390 | ) | 43,220 | Total operating (income) expense | 0 | 0 | (1,714) | 43,220 | ||||||||||||||||||||||||||
Pre-tax income (loss) from operations of discontinued operations | 390 | (39,048 | ) | Pre-tax income (loss) from operations of discontinued operations | 0 | 0 | 1,714 | (39,048) | ||||||||||||||||||||||||||
Income tax expense (benefit) related to disposition | 98 | (47,423 | ) | Income tax expense (benefit) related to disposition | 0 | 598 | 429 | (45,991) | ||||||||||||||||||||||||||
Net income from discontinued operations | $ | 292 | $ | 8,375 | ||||||||||||||||||||||||||||||
Net income (loss) from discontinued operations | Net income (loss) from discontinued operations | $ | 0 | $ | (598) | $ | 1,285 | $ | 6,943 | |||||||||||||||||||||||||
(1) Includes U.K. Subsidiaries financial results from January 1, 2019 to February 25, 2019. | (1) Includes U.K. Subsidiaries financial results from January 1, 2019 to February 25, 2019. | (1) Includes U.K. Subsidiaries financial results from January 1, 2019 to February 25, 2019. |
Nine Months Ended September 30, | |||||||||||
2020 | 2019(1) | ||||||||||
Net cash provided by (used in) discontinued operating activities | $ | 1,714 | $ | (504) | |||||||
Net cash used in discontinued investing activities | 0 | (14,213) | |||||||||
Net cash used in discontinued financing activities | 0 | 0 | |||||||||
(1) Includes U.K. Subsidiaries financial results from January 1, 2019 to February 25, 2019. |
Three Months Ended March 31, | |||||||
2020 | 2019(1) | ||||||
Net cash provided by (used in) discontinued operating activities | $ | 390 | $ | (504 | ) | ||
Net cash used in discontinued investing activities | — | (14,213 | ) | ||||
Net cash used in discontinued financing activities | — | — | |||||
(1) Includes U.K. Subsidiaries financial results from January 1, 2019 to February 25, 2019. |
U.S. | Canada | Total | |||||||||||||||
Goodwill at December 31, 2019 | $ | 91,131 | $ | 29,478 | $ | 120,609 | |||||||||||
Acquisition (Note 17) | 14,791 | 0 | 14,791 | ||||||||||||||
Foreign currency translation | 0 | (811) | (811) | ||||||||||||||
Goodwill at September 30, 2020 | $ | 105,922 | $ | 28,667 | $ | 134,589 |
U.S. | Canada | Total | |||||||||
Goodwill at December 31, 2019 | $ | 91,131 | $ | 29,478 | $ | 120,609 | |||||
Acquisition (Note 17) | 14,791 | — | 14,791 | ||||||||
Foreign currency translation | — | (2,575 | ) | (2,575 | ) | ||||||
Goodwill at March 31, 2020 | 105,922 | 26,903 | 132,825 |
(in thousands) | Amounts acquired on January 3, 2020 | ||||
Cash consideration transferred: | $ | 17,811 | |||
Cash and cash equivalents | 3,360 | ||||
Accounts receivable | 465 | ||||
Property and equipment | 358 | ||||
Intangible assets | 1,101 | ||||
Goodwill | 14,791 | ||||
Operating lease asset | 235 | ||||
Accounts payable and accrued liabilities | (2,264) | ||||
Operating lease liabilities | (235) | ||||
Total | $ | 17,811 |
(in thousands) | Amounts acquired on January 3, 2020 | ||
Cash consideration transferred: | $ | 17,811 | |
Cash and cash equivalents | 3,360 | ||
Accounts receivable | 465 | ||
Property and equipment | 358 | ||
Intangible assets | 1,101 | ||
Goodwill | 14,791 | ||
Operating lease asset | 235 | ||
Accounts payable and accrued liabilities | (2,264 | ) | |
Operating lease liabilities | (235 | ) | |
Total | $ | 17,811 |
For the Three Months Ended | ||||||||||||||||||||||||||
September 30, 2020 | September 30, 2019 | |||||||||||||||||||||||||
U.S. | Canada | Total | U.S. | Canada | Total | |||||||||||||||||||||
Unsecured Installment | $ | 66,204 | $ | 1,204 | $ | 67,408 | $ | 135,541 | $ | 1,692 | $ | 137,233 | ||||||||||||||
Secured Installment | 16,692 | — | 16,692 | 28,270 | — | 28,270 | ||||||||||||||||||||
Open-End | 30,431 | 28,280 | 58,711 | 39,605 | 26,515 | 66,120 | ||||||||||||||||||||
Single-Pay | 16,050 | 9,034 | 25,084 | 29,140 | 20,172 | 49,312 | ||||||||||||||||||||
Ancillary | 3,471 | 10,637 | 14,108 | 4,513 | 11,816 | 16,329 | ||||||||||||||||||||
Total revenue | $ | 132,848 | $ | 49,155 | $ | 182,003 | $ | 237,069 | $ | 60,195 | $ | 297,264 |
For the Three Months Ended | ||||||||||||||||||||
March 31, 2020 | March 31, 2019 | |||||||||||||||||||
U.S. | Canada | Total | U.S. | Canada | Total | |||||||||||||||
Unsecured Installment | $ | 120,829 | $ | 1,580 | $ | 122,409 | $ | 134,003 | $ | 1,775 | $ | 135,778 | ||||||||
Secured Installment | 26,286 | — | 26,286 | 27,477 | — | 27,477 | ||||||||||||||
Open-End | 41,990 | 28,992 | 70,982 | 32,593 | 20,276 | 52,869 | ||||||||||||||
Single-Pay | 28,154 | 17,003 | 45,157 | 27,168 | 19,593 | 46,761 | ||||||||||||||
Ancillary | 4,509 | 11,463 | 15,972 | 4,878 | 10,176 | 15,054 | ||||||||||||||
Total revenue | $ | 221,768 | $ | 59,038 | $ | 280,806 | $ | 226,119 | $ | 51,820 | $ | 277,939 |
For the Nine Months Ended | ||||||||||||||||||||||||||
September 30, 2020 | September 30, 2019 | |||||||||||||||||||||||||
U.S. | Canada | Total | U.S. | Canada | Total | |||||||||||||||||||||
Unsecured Installment | $ | 256,258 | $ | 4,070 | $ | 260,328 | $ | 390,026 | $ | 5,093 | $ | 395,119 | ||||||||||||||
Secured Installment | 62,379 | — | 62,379 | 81,823 | — | 81,823 | ||||||||||||||||||||
Open-End | 103,338 | 83,091 | 186,429 | 104,516 | 69,445 | 173,961 | ||||||||||||||||||||
Single-Pay | 58,521 | 34,452 | 92,973 | 82,733 | 58,872 | 141,605 | ||||||||||||||||||||
Ancillary | 11,440 | 31,769 | 43,209 | 14,136 | 32,859 | 46,995 | ||||||||||||||||||||
Total revenue | $ | 491,936 | $ | 153,382 | $ | 645,318 | $ | 673,234 | $ | 166,269 | $ | 839,503 |
As of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company Owned gross loans receivable | $ | 497.4 | $ | 456.5 | $ | 564.4 | $ | 665.8 | $ | 657.6 | |||||||||||||||||||||||||||||||||||||||||||||||||
Gross loans receivable Guaranteed by the Company | 39.8 | 34.1 | 55.9 | 76.7 | 73.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross combined loans receivable (1) | $ | 537.2 | $ | 490.6 | $ | 620.3 | $ | 742.5 | $ | 730.7 | |||||||||||||||||||||||||||||||||||||||||||||||||
(1) See "Non-GAAP Financial Measures" below for definition and additional information. |
As of | |||||||||||||||
March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||
Company Owned gross loans receivable | $ | 564.4 | $ | 665.8 | $ | 657.6 | $ | 609.6 | $ | 553.2 | |||||
Gross loans receivable Guaranteed by the Company | 55.9 | 76.7 | 73.1 | 67.3 | 61.9 | ||||||||||
Gross combined loans receivable (1) | $ | 620.3 | $ | 742.5 | $ | 730.7 | $ | 676.9 | $ | 615.1 | |||||
(1) See "Non-GAAP Financial Measures" below for definition and additional information. |
2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands, unaudited) | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | |||||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Installment loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue - Company Owned | $ | 31,168 | $ | 33,405 | $ | 55,569 | $ | 63,428 | $ | 65,809 | ||||||||||||||||||||||||||||||||||||||||||||||
Provision for losses - Company Owned | 9,647 | 12,932 | 26,182 | 33,183 | 31,891 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenue - Company Owned | $ | 21,521 | $ | 20,473 | $ | 29,387 | $ | 30,245 | $ | 33,918 | ||||||||||||||||||||||||||||||||||||||||||||||
Net charge-offs - Company Owned | $ | 9,595 | $ | 23,110 | $ | 32,775 | $ | 35,729 | $ | 28,973 | ||||||||||||||||||||||||||||||||||||||||||||||
Revenue - Guaranteed by the Company (1) | $ | 36,240 | $ | 37,024 | $ | 66,840 | $ | 72,183 | $ | 71,424 | ||||||||||||||||||||||||||||||||||||||||||||||
Provision for losses - Guaranteed by the Company (1) | 14,884 | 11,418 | 26,338 | 34,858 | 36,664 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenue - Guaranteed by the Company (1) | $ | 21,356 | $ | 25,606 | $ | 40,502 | $ | 37,325 | $ | 34,760 | ||||||||||||||||||||||||||||||||||||||||||||||
Net charge-offs - Guaranteed by the Company (1) | $ | 13,882 | $ | 15,432 | $ | 27,749 | $ | 34,486 | $ | 35,916 | ||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Installment gross combined loans receivable: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company Owned | $ | 84,959 | $ | 81,601 | $ | 123,118 | $ | 160,782 | $ | 174,489 | ||||||||||||||||||||||||||||||||||||||||||||||
Guaranteed by the Company (1) | 38,822 | 33,082 | 54,097 | 74,317 | 70,704 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Installment gross combined loans receivable (1)(2) | $ | 123,781 | $ | 114,683 | $ | 177,215 | $ | 235,099 | $ | 245,193 | ||||||||||||||||||||||||||||||||||||||||||||||
Average gross loans receivable: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Unsecured Installment gross loans receivable - Company Owned (3) | $ | 83,280 | $ | 102,360 | $ | 141,950 | $ | 167,636 | $ | 169,606 | ||||||||||||||||||||||||||||||||||||||||||||||
Average Unsecured Installment gross loans receivable - Guaranteed by the Company (1)(3) | $ | 35,952 | $ | 43,590 | $ | 64,207 | $ | 72,511 | $ | 67,880 | ||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses and CSO liability for losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Installment Allowance for loan losses (4) | $ | 18,859 | $ | 18,451 | $ | 28,965 | $ | 35,587 | $ | 38,127 | ||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Installment CSO liability for losses (1)(4) | $ | 6,130 | $ | 5,128 | $ | 9,142 | $ | 10,553 | $ | 10,181 | ||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Installment Allowance for loan losses as a percentage of Unsecured Installment gross loans receivable | 22.2 | % | 22.6 | % | 23.5 | % | 22.1 | % | 21.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Installment CSO liability for losses as a percentage of Unsecured Installment gross loans Guaranteed by the Company (1) | 15.8 | % | 15.5 | % | 16.9 | % | 14.2 | % | 14.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Installment past-due balances: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Installment gross loans receivable - Company Owned | $ | 17,942 | $ | 17,766 | $ | 34,966 | $ | 43,100 | $ | 46,537 | ||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Installment gross loans - Guaranteed by the Company (1) | $ | 5,953 | $ | 4,019 | $ | 9,232 | $ | 12,477 | $ | 11,842 | ||||||||||||||||||||||||||||||||||||||||||||||
Past-due Unsecured Installment Company Owned gross loans receivable -- percentage | 21.1 | % | 21.8 | % | 28.4 | % | 26.8 | % | 26.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Past-due Unsecured Installment gross loans Guaranteed by the Company -- percentage (1) | 15.3 | % | 12.1 | % | 17.1 | % | 16.8 | % | 16.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Installment other information: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Originations - Company Owned | $ | 49,833 | $ | 24,444 | $ | 55,941 | $ | 87,080 | $ | 107,275 | ||||||||||||||||||||||||||||||||||||||||||||||
Originations - Guaranteed by the Company (1) | $ | 51,433 | $ | 33,700 | $ | 64,836 | $ | 91,004 | $ | 89,644 | ||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Installment ratios: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NCO rate - Company Owned (5) | 11.5 | % | 22.6 | % | 23.1 | % | 21.3 | % | 17.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||
NCO rate - Guaranteed by the Company (1)(5) | 38.6 | % | 35.4 | % | 43.2 | % | 47.6 | % | 52.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||
(1) Includes loans originated by third-party lenders through CSO programs, which are not included in our unaudited Condensed Consolidated Financial Statements. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Non-GAAP measure. For a description of each non-GAAP metric, see "Non-GAAP Financial Measures." | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(3) We calculate Average gross loans receivable, which we utilize to calculate product yield and NCO rates, as average of beginning of quarter and end of quarter gross loans receivable. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(4) We report Allowance for loan losses as a contra-asset reducing gross loans receivable and the CSO liability for losses as a liability on our unaudited Condensed Consolidated Balance Sheets. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(5) We calculate NCO rate as NCOs divided by Average gross loans receivables. |
2020 | 2019 | |||||||||||||||
(dollars in thousands, unaudited) | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||||||
Unsecured Installment loans: | ||||||||||||||||
Revenue - Company Owned | $ | 55,569 | $ | 63,428 | $ | 65,809 | $ | 59,814 | $ | 65,542 | ||||||
Provision for losses - Company Owned | 26,182 | 33,183 | 31,891 | 33,514 | 33,845 | |||||||||||
Net revenue - Company Owned | $ | 29,387 | $ | 30,245 | $ | 33,918 | $ | 26,300 | $ | 31,697 | ||||||
Net charge-offs - Company Owned | $ | 32,775 | $ | 35,729 | $ | 28,973 | $ | 31,970 | $ | 37,919 | ||||||
Revenue - Guaranteed by the Company | $ | 66,840 | $ | 72,183 | $ | 71,424 | $ | 62,298 | $ | 70,236 | ||||||
Provision for losses - Guaranteed by the Company | 26,338 | 34,858 | 36,664 | 28,336 | 27,422 | |||||||||||
Net revenue - Guaranteed by the Company | $ | 40,502 | $ | 37,325 | $ | 34,760 | $ | 33,962 | $ | 42,814 | ||||||
Net charge-offs - Guaranteed by the Company | $ | 27,749 | $ | 34,486 | $ | 35,916 | $ | 27,486 | $ | 30,421 | ||||||
Unsecured Installment gross combined loans receivable: | ||||||||||||||||
Company Owned | $ | 123,118 | $ | 160,782 | $ | 174,489 | $ | 164,722 | $ | 161,716 | ||||||
Guaranteed by the Company (1)(2) | 54,097 | 74,317 | 70,704 | 65,055 | 59,740 | |||||||||||
Unsecured Installment gross combined loans receivable (1)(2) | $ | 177,215 | $ | 235,099 | $ | 245,193 | $ | 229,777 | $ | 221,456 | ||||||
Average gross loans receivable: | ||||||||||||||||
Average Unsecured Installment gross loans receivable - Company Owned (3) | $ | 141,950 | $ | 167,636 | $ | 169,606 | $ | 163,219 | $ | 176,060 | ||||||
Average Unsecured Installment gross loans receivable - Guaranteed by the Company (3) | $ | 64,207 | $ | 72,511 | $ | 67,880 | $ | 62,398 | $ | 68,596 | ||||||
Allowance for loan losses and CSO liability for losses: | ||||||||||||||||
Unsecured Installment Allowance for loan losses (3) | $ | 28,965 | $ | 35,587 | $ | 38,127 | $ | 35,223 | $ | 33,666 | ||||||
Unsecured Installment CSO liability for losses (3) | $ | 9,142 | $ | 10,553 | $ | 10,181 | $ | 9,433 | $ | 8,583 | ||||||
Unsecured Installment Allowance for loan losses as a percentage of Unsecured Installment gross loans receivable | 23.5 | % | 22.1 | % | 21.9 | % | 21.4 | % | 20.8 | % | ||||||
Unsecured Installment CSO liability for losses as a percentage of Unsecured Installment gross loans guaranteed by the Company | 16.9 | % | 14.2 | % | 14.4 | % | 14.5 | % | 14.4 | % | ||||||
Unsecured Installment past-due balances: | ||||||||||||||||
Unsecured Installment gross loans receivable | $ | 34,966 | $ | 43,100 | $ | 46,537 | $ | 38,037 | $ | 40,801 | ||||||
Unsecured Installment gross loans guaranteed by the Company | $ | 9,232 | $ | 12,477 | $ | 11,842 | $ | 10,087 | $ | 7,967 | ||||||
Past-due Unsecured Installment gross loans receivable -- percentage (2) | 28.4 | % | 26.8 | % | 26.7 | % | 23.1 | % | 25.2 | % | ||||||
Past-due Unsecured Installment gross loans guaranteed by the Company -- percentage (2) | 17.1 | % | 16.8 | % | 16.7 | % | 15.5 | % | 13.3 | % | ||||||
Unsecured Installment other information: | ||||||||||||||||
Originations - Company Owned | $ | 55,941 | $ | 87,080 | $ | 107,275 | $ | 102,792 | $ | 78,515 | ||||||
Originations - Guaranteed by the Company (1) | $ | 64,836 | $ | 91,004 | $ | 89,644 | $ | 80,445 | $ | 68,899 | ||||||
Unsecured Installment ratios: | ||||||||||||||||
Provision as a percentage of gross loans receivable - Company Owned | 21.3 | % | 20.6 | % | 18.3 | % | 20.3 | % | 20.9 | % | ||||||
Provision as a percentage of gross loans receivable - Guaranteed by the Company | 48.7 | % | 46.9 | % | 51.9 | % | 43.6 | % | 45.9 | % | ||||||
(1) Includes loans originated by third-party lenders through CSO programs, which are not included in our unaudited Condensed Consolidated Financial Statements. | ||||||||||||||||
(2) Non-GAAP measure. For a description of each non-GAAP metric, see "Non-GAAP Financial Measures." | ||||||||||||||||
(3) We calculate Average gross loans receivable, which we utilize to calculate product yield and NCO rates, as average of beginning of quarter and end of quarter gross loans receivable. | ||||||||||||||||
(4) We report Allowance for loan losses as a contra-asset reducing gross loans receivable and the CSO liability for losses as a liability on our unaudited Condensed Consolidated Balance Sheets. |
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands, unaudited) | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Installment loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 16,692 | $ | 19,401 | $ | 26,286 | $ | 28,690 | $ | 28,270 | |||||||||||||||||||||||||||||||||||||||||||||||||
Provision for losses | 3,291 | 7,238 | 9,682 | 11,492 | 8,819 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenue | $ | 13,401 | $ | 12,163 | $ | 16,604 | $ | 17,198 | $ | 19,451 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net charge-offs | $ | 4,033 | $ | 9,092 | $ | 10,284 | $ | 11,548 | $ | 8,455 | |||||||||||||||||||||||||||||||||||||||||||||||||
Secured Installment gross combined loan balances: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Installment gross combined loans receivable (1)(2) | $ | 49,921 | $ | 54,635 | $ | 74,405 | $ | 90,411 | $ | 92,478 | |||||||||||||||||||||||||||||||||||||||||||||||||
Average Secured Installment gross combined loans receivable (3) | $ | 52,278 | $ | 64,520 | $ | 82,408 | $ | 91,445 | $ | 90,098 | |||||||||||||||||||||||||||||||||||||||||||||||||
Secured Installment Allowance for loan losses and CSO liability for losses (4) | $ | 7,177 | $ | 7,919 | $ | 9,773 | $ | 10,375 | $ | 10,431 | |||||||||||||||||||||||||||||||||||||||||||||||||
Secured Installment Allowance for loan losses and CSO liability for losses as a percentage of Secured Installment gross combined loans receivable (1) | 14.4 | % | 14.5 | % | 13.1 | % | 11.5 | % | 11.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Secured Installment past-due balances: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Installment past-due gross combined loans receivable (1)(2) | $ | 7,703 | $ | 9,072 | $ | 15,612 | $ | 17,902 | $ | 17,645 | |||||||||||||||||||||||||||||||||||||||||||||||||
Past-due Secured Installment gross combined loans receivable -- percentage (1) | 15.4 | % | 16.6 | % | 21.0 | % | 19.8 | % | 19.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Secured Installment other information: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Originations (2) | $ | 19,216 | $ | 11,242 | $ | 20,990 | $ | 40,961 | $ | 45,990 | |||||||||||||||||||||||||||||||||||||||||||||||||
Secured Installment ratios: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NCO Rate (5) | 7.7 | % | 14.1 | % | 12.5 | % | 12.6 | % | 9.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
(1) Non-GAAP measure. For a description of each non-GAAP metric, see "Non-GAAP Financial Measures." | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Includes loans originated by third-party lenders through CSO programs, which are not included in our unaudited Condensed Consolidated Financial Statements. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(3) We calculate Average gross loans receivable, which we utilize to calculate product yield and NCO rates, as beginning of quarter and end of quarter gross loans receivable. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(4) We report Allowance for loan losses as a contra-asset reducing gross loans receivable and the CSO liability for losses as a liability on our unaudited Condensed Consolidated Balance Sheets. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(5) We calculate NCO rate as NCOs divided by Average gross loans receivables. |
2020 | 2019 | |||||||||||||||
(dollars in thousands, unaudited) | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||||||
Secured Installment loans: | ||||||||||||||||
Revenue | $ | 26,286 | $ | 28,690 | $ | 28,270 | $ | 26,076 | $ | 27,477 | ||||||
Provision for losses | 9,682 | 11,492 | 8,819 | 7,821 | 7,080 | |||||||||||
Net revenue | $ | 16,604 | $ | 17,198 | $ | 19,451 | $ | 18,255 | $ | 20,397 | ||||||
Net charge-offs | $ | 10,284 | $ | 11,548 | $ | 8,455 | $ | 7,630 | $ | 9,822 | ||||||
Secured Installment gross combined loan balances: | ||||||||||||||||
Secured Installment gross combined loans receivable (1)(2) | $ | 74,405 | $ | 90,411 | $ | 92,478 | $ | 87,718 | $ | 83,087 | ||||||
Average Secured Installment gross combined loans receivable (3) | $ | 82,408 | $ | 91,445 | $ | 90,098 | $ | 85,403 | $ | 89,505 | ||||||
Secured Installment Allowance for loan losses and CSO liability for losses (4) | $ | 9,773 | $ | 10,375 | $ | 10,431 | $ | 10,067 | $ | 9,874 | ||||||
Secured Installment Allowance for loan losses and CSO liability for losses as a percentage of Secured Installment gross combined loans receivable | 13.1 | % | 11.5 | % | 11.3 | % | 11.5 | % | 11.9 | % | ||||||
Secured Installment past-due balances: | ||||||||||||||||
Secured Installment past-due gross loans receivable and gross loans guaranteed by the Company | $ | 15,612 | $ | 17,902 | $ | 17,645 | $ | 14,570 | $ | 13,866 | ||||||
Past-due Secured Installment gross loans receivable and gross loans guaranteed by the Company -- percentage (1)(2) | 21.0 | % | 19.8 | % | 19.1 | % | 16.6 | % | 16.7 | % | ||||||
Secured Installment other information: | ||||||||||||||||
Originations (2) | $ | 20,990 | $ | 40,961 | $ | 45,990 | $ | 49,051 | $ | 33,490 | ||||||
Secured Installment ratios: | ||||||||||||||||
Provision as a percentage of gross combined loans receivable | 13.0 | % | 12.7 | % | 9.5 | % | 8.9 | % | 8.5 | % | ||||||
(1) Non-GAAP measure. For a description of each non-GAAP metric, see "Non-GAAP Financial Measures." | ||||||||||||||||
(2) Includes loans originated by third-party lenders through CSO programs, which are not included in our unaudited Condensed Consolidated Financial Statements. | ||||||||||||||||
(3) We calculate Average gross loans receivable, which we utilize to calculate product yield and NCO rates, as beginning of quarter and end of quarter gross loans receivable. | ||||||||||||||||
(4) We report Allowance for loan losses as a contra-asset reducing gross loans receivable and the CSO liability for losses as a liability on our unaudited Condensed Consolidated Balance Sheets. |
2020 | 2019 | |||||||||||||||
(dollars in thousands, unaudited) | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||||||
Open-End loans: | ||||||||||||||||
Revenue | $ | 70,982 | $ | 71,295 | $ | 66,120 | $ | 54,972 | $ | 52,869 | ||||||
Provision for losses | 40,991 | 37,816 | 31,220 | 29,373 | 25,317 | |||||||||||
Net revenue | $ | 29,991 | $ | 33,479 | $ | 34,900 | $ | 25,599 | $ | 27,552 | ||||||
Net charge-offs (1) | $ | 37,098 | $ | 37,426 | $ | 28,202 | $ | 25,151 | $ | (1,521 | ) | |||||
Open-End gross loan balances: | ||||||||||||||||
Open-End gross loans receivable | $ | 314,006 | $ | 335,524 | $ | 314,971 | $ | 283,311 | $ | 240,790 | ||||||
Average Open-End gross loans receivable (1) | $ | 324,765 | $ | 325,248 | $ | 299,141 | $ | 262,051 | $ | 224,062 | ||||||
Open-End allowance for loan losses: | ||||||||||||||||
Allowance for loan losses | $ | 56,458 | $ | 55,074 | $ | 54,233 | $ | 51,717 | $ | 46,963 | ||||||
Open-End Allowance for loan losses as a percentage of Open-End gross loans receivable | 18.0 | % | 16.4 | % | 17.2 | % | 18.3 | % | 19.5 | % | ||||||
Open-End past-due balances: | ||||||||||||||||
Open-End past-due gross loans receivable | $ | 49,987 | $ | 50,072 | $ | 46,053 | $ | 35,395 | $ | 32,444 | ||||||
Past-due Open-End gross loans receivable - percentage | 15.9 | % | 14.9 | % | 14.6 | % | 12.5 | % | 13.5 | % | ||||||
(1) We calculate Average gross loans receivable, which we utilize to calculate product yield and NCO rates, as average of beginning of quarter and end of quarter gross loans receivable. |
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands, unaudited) | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | ||||||||||||||||||||||||||||||||||||||||||||||||
Open-End loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 58,711 | $ | 56,736 | $ | 70,982 | $ | 71,295 | $ | 66,120 | |||||||||||||||||||||||||||||||||||||||||||
Provision for losses | 21,655 | 21,341 | 40,991 | 37,816 | 31,220 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net revenue | $ | 37,056 | $ | 35,395 | $ | 29,991 | $ | 33,479 | $ | 34,900 | |||||||||||||||||||||||||||||||||||||||||||
Net charge-offs | $ | 18,163 | $ | 31,684 | $ | 37,098 | $ | 37,426 | $ | 28,202 | |||||||||||||||||||||||||||||||||||||||||||
Open-End gross loan balances: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Open-End gross loans receivable | $ | 322,234 | $ | 285,156 | $ | 314,006 | $ | 335,524 | $ | 314,971 | |||||||||||||||||||||||||||||||||||||||||||
Average Open-End gross loans receivable (1) | $ | 303,695 | $ | 299,581 | $ | 324,765 | $ | 325,248 | $ | 299,141 | |||||||||||||||||||||||||||||||||||||||||||
Open-End allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | $ | 51,417 | $ | 47,319 | $ | 56,458 | $ | 55,074 | $ | 54,233 | |||||||||||||||||||||||||||||||||||||||||||
Open-End Allowance for loan losses as a percentage of Open-End gross loans receivable | 16.0 | % | 16.6 | % | 18.0 | % | 16.4 | % | 17.2 | % | |||||||||||||||||||||||||||||||||||||||||||
Open-End past-due balances: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Open-End past-due gross loans receivable | $ | 31,807 | $ | 31,208 | $ | 49,987 | $ | 50,072 | $ | 46,053 | |||||||||||||||||||||||||||||||||||||||||||
Past-due Open-End gross loans receivable - percentage | 9.9 | % | 10.9 | % | 15.9 | % | 14.9 | % | 14.6 | % | |||||||||||||||||||||||||||||||||||||||||||
Open-End ratios: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
NCO rate (2) | 6.0 | % | 10.6 | % | 11.4 | % | 11.5 | % | 9.4 | % | |||||||||||||||||||||||||||||||||||||||||||
(1) We calculate Average gross loans receivable, which we utilize to calculate product yield and NCO rates, as average of beginning of quarter and end of quarter gross loans receivable. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) We calculate NCO rate as NCOs divided by Average gross loans receivables. |
Pro Forma | 2019 | ||||||||||||||||
(dollars in thousands, unaudited) | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||||||||
Open-End loans: | |||||||||||||||||
Pro Forma NCOs | $ | 38,748 | $ | 29,762 | $ | 29,648 | $ | 31,788 | |||||||||
Open-End gross loan balances: | |||||||||||||||||
Open-End gross loans receivable | $ | 335,524 | $ | 314,971 | $ | 283,311 | $ | 240,790 | |||||||||
Pro Forma Average Open-End gross loans receivable (1) | $ | 325,248 | $ | 299,141 | $ | 262,051 | $ | 245,096 | |||||||||
Pro Forma NCO rate (2) | 11.9 | % | 9.9 | % | 11.3 | % | 13.0 | % | |||||||||
(1) We calculate Average gross loans receivable, which we utilize to calculate product yield and NCO rates, as average of beginning of quarter and end of quarter gross loans receivable. | |||||||||||||||||
(2) We calculate NCO rate as NCOs divided by Average gross loans receivables. |
Pro Forma | 2019 | ||||||||||||
(dollars in thousands, unaudited) | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||||
Open-End loans: | |||||||||||||
Pro Forma Net charge-offs | $ | 38,748 | $ | 29,762 | $ | 29,648 | $ | 31,788 | |||||
Open-End gross loan balances: | |||||||||||||
Open-End gross loans receivable | $ | 335,524 | $ | 314,971 | $ | 283,311 | $ | 240,790 | |||||
Pro Forma Average Open-End gross loans receivable (1) | $ | 325,248 | $ | 299,141 | $ | 262,051 | $ | 245,096 | |||||
Pro Forma Net-charge offs as a percentage of average gross loans receivable | 11.9 | % | 9.9 | % | 11.3 | % | 13.0 | % | |||||
(1) We calculate Average gross loans receivable, which we utilize to calculate product yield and NCO rates, as average of beginning of quarter and end of quarter gross loans receivable. |
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands, unaudited) | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | ||||||||||||||||||||||||||||||||||||||||||||||||
Single-pay loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 25,084 | $ | 22,732 | $ | 45,157 | $ | 49,844 | $ | 49,312 | |||||||||||||||||||||||||||||||||||||||||||
Provision for losses | 4,799 | (2,588) | 9,639 | 12,289 | 14,736 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net revenue | $ | 20,285 | $ | 25,320 | $ | 35,518 | $ | 37,555 | $ | 34,576 | |||||||||||||||||||||||||||||||||||||||||||
Net charge-offs | $ | 4,439 | $ | (598) | $ | 10,517 | $ | 12,145 | $ | 13,913 | |||||||||||||||||||||||||||||||||||||||||||
Single-Pay gross loan balances: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Single-Pay gross loans receivable | $ | 41,274 | $ | 36,130 | $ | 54,728 | $ | 81,447 | $ | 78,039 | |||||||||||||||||||||||||||||||||||||||||||
Average Single-Pay gross loans receivable (1) | $ | 38,702 | $ | 45,429 | $ | 68,088 | $ | 78,787 | $ | 77,083 | |||||||||||||||||||||||||||||||||||||||||||
Single-Pay Allowance for loan losses | $ | 3,197 | $ | 2,802 | $ | 4,693 | $ | 5,869 | $ | 5,662 | |||||||||||||||||||||||||||||||||||||||||||
Single-Pay Allowance for loan losses as a percentage of Single-Pay gross loans receivable | 7.7 | % | 7.8 | % | 8.6 | % | 7.2 | % | 7.3 | % | |||||||||||||||||||||||||||||||||||||||||||
NCO rate (2) | 11.5 | % | (1.3) | % | 15.4 | % | 15.4 | % | 18.0 | % | |||||||||||||||||||||||||||||||||||||||||||
(1) We calculate Average gross loans receivable, which we utilize to calculate product yield and NCO rates, as average of beginning of quarter and end of quarter gross loans receivable. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) We calculate NCO rate as NCOs divided by Average gross loans receivables. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||
(dollars in thousands, unaudited) | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||||||
Single-pay loans: | ||||||||||||||||
Revenue | $ | 45,157 | $ | 49,844 | $ | 49,312 | $ | 45,528 | $ | 46,761 | ||||||
Provision for losses | 9,639 | 12,289 | 14,736 | 12,446 | 8,268 | |||||||||||
Net revenue | $ | 35,518 | $ | 37,555 | $ | 34,576 | $ | 33,082 | $ | 38,493 | ||||||
Net charge-offs | $ | 10,517 | $ | 12,145 | $ | 13,913 | $ | 11,458 | $ | 8,610 | ||||||
Single-Pay gross loan balances: | ||||||||||||||||
Single-Pay gross loans receivable | $ | 54,728 | $ | 81,447 | $ | 78,039 | $ | 76,126 | $ | 69,753 | ||||||
Average Single-Pay gross loans receivable (1) | $ | 68,088 | $ | 78,787 | $ | 77,083 | $ | 72,940 | $ | 75,288 | ||||||
Single-Pay Allowance for loan losses | $ | 4,693 | $ | 5,869 | $ | 5,662 | $ | 4,941 | $ | 3,897 | ||||||
Single-Pay Allowance for loan losses as a percentage of Single-Pay gross loans receivable | 8.6 | % | 7.2 | % | 7.3 | % | 6.5 | % | 5.6 | % | ||||||
(1) We calculate Average gross loans receivable, which we utilize to calculate product yield and NCO rates, as average of beginning of quarter and end of quarter gross loans receivable. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2020 | 2019 | Change $ | Change % | 2020 | 2019 | Change $ | Change % | ||||||||||||||||||||||
Revenue | $ | 182,003 | $ | 297,264 | $ | (115,261) | (38.8) | % | $ | 645,318 | $ | 839,503 | $ | (194,185) | (23.1) | % | |||||||||||||
Provision for losses | 54,750 | 123,867 | (69,117) | (55.8) | % | 218,979 | 338,262 | (119,283) | (35.3) | % | |||||||||||||||||||
Net revenue | 127,253 | 173,397 | (46,144) | (26.6) | % | 426,339 | 501,241 | (74,902) | (14.9) | % | |||||||||||||||||||
Advertising | 14,425 | 16,424 | (1,999) | (12.2) | % | 32,394 | 36,990 | (4,596) | (12.4) | % | |||||||||||||||||||
Non-advertising costs of providing services | 49,258 | 60,334 | (11,076) | (18.4) | % | 154,177 | 180,934 | (26,757) | (14.8) | % | |||||||||||||||||||
Total cost of providing services | 63,683 | 76,758 | (13,075) | (17.0) | % | 186,571 | 217,924 | (31,353) | (14.4) | % | |||||||||||||||||||
Gross margin | 63,570 | 96,639 | (33,069) | (34.2) | % | 239,768 | 283,317 | (43,549) | (15.4) | % | |||||||||||||||||||
Operating expense | |||||||||||||||||||||||||||||
Corporate, district and other expenses | 36,658 | 38,665 | (2,007) | (5.2) | % | 116,246 | 123,043 | (6,797) | (5.5) | % | |||||||||||||||||||
Interest expense | 18,383 | 17,364 | 1,019 | 5.9 | % | 54,018 | 52,077 | 1,941 | 3.7 | % | |||||||||||||||||||
(Income) loss from equity method investment | (3,530) | 1,384 | (4,914) | # | (2,653) | 5,132 | (7,785) | # | |||||||||||||||||||||
Total operating expense | 51,511 | 57,413 | (5,902) | (10.3) | % | 167,611 | 180,252 | (12,641) | (7.0) | % | |||||||||||||||||||
Income from continuing operations before income taxes | 12,059 | 39,226 | (27,167) | (69.3) | % | 72,157 | 103,065 | (30,908) | (30.0) | % | |||||||||||||||||||
(Benefit) provision for income taxes | (822) | 11,239 | (12,061) | # | 2,183 | 28,738 | (26,555) | (92.4) | % | ||||||||||||||||||||
Net income from continuing operations | 12,881 | 27,987 | (15,106) | (54.0) | % | 69,974 | 74,327 | (4,353) | (5.9) | % | |||||||||||||||||||
Net income (loss) from discontinued operations, net of tax | — | (598) | 598 | # | 1,285 | 6,943 | (5,658) | (81.5) | % | ||||||||||||||||||||
Net income | $ | 12,881 | $ | 27,389 | $ | (14,508) | (53.0) | % | $ | 71,259 | $ | 81,270 | $ | (10,011) | (12.3) | % | |||||||||||||
# - Variance greater than 100% or not meaningful |
Three Months Ended March 31, | |||||||||||
2020 | 2019 | Change $ | Change % | ||||||||
Revenue | $ | 280,806 | $ | 277,939 | $ | 2,867 | 1.0 | % | |||
Provision for losses | 113,536 | 102,385 | 11,151 | 10.9 | % | ||||||
Net revenue | 167,270 | 175,554 | (8,284 | ) | (4.7 | )% | |||||
Advertising costs | 12,219 | 7,786 | 4,433 | 56.9 | % | ||||||
Non-advertising costs of providing services | 55,352 | 62,271 | (6,919 | ) | (11.1 | )% | |||||
Total cost of providing services | 67,571 | 70,057 | (2,486 | ) | (3.5 | )% | |||||
Gross margin | 99,699 | 105,497 | (5,798 | ) | (5.5 | )% | |||||
Operating expense | |||||||||||
Corporate, district and other expenses | 42,807 | 49,088 | (6,281 | ) | (12.8 | )% | |||||
Interest expense | 17,324 | 17,690 | (366 | ) | (2.1 | )% | |||||
Loss from equity method investment | 1,618 | — | 1,618 | # | |||||||
Total operating expense | 61,749 | 66,778 | (5,029 | ) | (7.5 | )% | |||||
Income from continuing operations before income taxes | 37,950 | 38,719 | (769 | ) | (2.0 | )% | |||||
Provision for income taxes | 1,937 | 10,046 | (8,109 | ) | (80.7 | )% | |||||
Net income from continuing operations | 36,013 | 28,673 | 7,340 | 25.6 | % | ||||||
Net income from discontinued operations, net of tax | 292 | 8,375 | (8,083 | ) | (96.5 | )% | |||||
Net income | $ | 36,305 | $ | 37,048 | $ | (743 | ) | (2.0 | )% | ||
# - Variance greater than 100% or not meaningful |
U.S. Segment Results | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2020 | 2019 | Change $ | Change % | 2020 | 2019 | Change $ | Change % | ||||||||||||||||||||||
Revenue | $ | 132,848 | $ | 237,069 | $ | (104,221) | (44.0) | % | $ | 491,936 | $ | 673,234 | $ | (181,298) | (26.9) | % | |||||||||||||
Provision for losses | 43,485 | 102,997 | (59,512) | (57.8) | % | 171,056 | 280,529 | (109,473) | (39.0) | % | |||||||||||||||||||
Net revenue | 89,363 | 134,072 | (44,709) | (33.3) | % | 320,880 | 392,705 | (71,825) | (18.3) | % | |||||||||||||||||||
Advertising | 13,405 | 14,186 | (781) | (5.5) | % | 29,619 | 31,719 | (2,100) | (6.6) | % | |||||||||||||||||||
Non-advertising costs of providing services | 32,574 | 42,636 | (10,062) | (23.6) | % | 103,477 | 128,866 | (25,389) | (19.7) | % | |||||||||||||||||||
Total cost of providing services | 45,979 | 56,822 | (10,843) | (19.1) | % | 133,096 | 160,585 | (27,489) | (17.1) | % | |||||||||||||||||||
Gross margin | 43,384 | 77,250 | (33,866) | (43.8) | % | 187,784 | 232,120 | (44,336) | (19.1) | % | |||||||||||||||||||
Corporate, district and other expenses | 31,503 | 32,897 | (1,394) | (4.2) | % | 98,784 | 106,426 | (7,642) | (7.2) | % | |||||||||||||||||||
Interest expense | 16,107 | 14,877 | 1,230 | 8.3 | % | 47,066 | 44,246 | 2,820 | 6.4 | % | |||||||||||||||||||
(Income) loss from equity method investment | (3,530) | 1,384 | (4,914) | # | (2,653) | 5,132 | (7,785) | # | |||||||||||||||||||||
Total operating expense | 44,080 | 49,158 | (5,078) | (10.3) | % | 143,197 | 155,804 | (12,607) | (8.1) | % | |||||||||||||||||||
Segment operating (loss) income | (696) | 28,092 | (28,788) | # | 44,587 | 76,316 | (31,729) | (41.6) | |||||||||||||||||||||
Interest expense | 16,107 | 14,877 | 1,230 | 8.3 | % | 47,066 | 44,246 | 2,820 | 6.4 | % | |||||||||||||||||||
Depreciation and amortization | 3,228 | 3,390 | (162) | (4.8) | % | 9,914 | 10,553 | (639) | (6.1) | % | |||||||||||||||||||
EBITDA(1) | 18,639 | 46,359 | (27,720) | (59.8) | % | 101,567 | 131,115 | (29,548) | (22.5) | ||||||||||||||||||||
Legal and related costs | 1,415 | 870 | 545 | 3,502 | 2,487 | 1,015 | |||||||||||||||||||||||
Other adjustments | (105) | 42 | (147) | 59 | (206) | 265 | |||||||||||||||||||||||
U.K. related costs | — | 348 | (348) | — | 8,844 | (8,844) | |||||||||||||||||||||||
Share-based compensation | 3,392 | 2,771 | 621 | 9,896 | 7,587 | 2,309 | |||||||||||||||||||||||
(Income) loss from equity method investment | (3,530) | 1,384 | (4,914) | (2,653) | 5,132 | (7,785) | |||||||||||||||||||||||
Adjusted EBITDA(1) | $ | 19,811 | $ | 51,774 | $ | (31,963) | (61.7) | % | $ | 112,371 | $ | 154,959 | $ | (42,588) | (27.5) | % | |||||||||||||
(1) These are non-GAAP metrics. For a description and reconciliation of each Non-GAAP metric, see "Supplemental Non-GAAP Financial Information." | |||||||||||||||||||||||||||||
# - Variance greater than 100% or not meaningful. |
U.S. Segment Results | Three Months Ended March 31, | ||||||||||
2020 | 2019 | Change $ | Change % | ||||||||
Revenue | $ | 221,768 | $ | 226,119 | $ | (4,351 | ) | (1.9 | )% | ||
Provision for losses | 86,041 | 84,980 | 1,061 | 1.2 | % | ||||||
Net revenue | 135,727 | 141,139 | (5,412 | ) | (3.8 | )% | |||||
Advertising costs | 10,945 | 6,354 | 4,591 | 72.3 | % | ||||||
Non-advertising costs of providing services | 37,242 | 44,982 | (7,740 | ) | (17.2 | )% | |||||
Total cost of providing services | 48,187 | 51,336 | (3,149 | ) | (6.1 | )% | |||||
Gross margin | 87,540 | 89,803 | (2,263 | ) | (2.5 | )% | |||||
Corporate, district and other expenses | 37,650 | 43,880 | (6,230 | ) | (14.2 | )% | |||||
Interest expense | 14,846 | 14,728 | 118 | 0.8 | % | ||||||
Loss from equity method investment | 1,618 | — | 1,618 | # | |||||||
Total operating expense | 54,114 | 58,608 | (4,494 | ) | (7.7 | )% | |||||
Segment operating income | 33,426 | 31,195 | 2,231 | 7.2 | % | ||||||
Interest expense | 14,846 | 14,728 | 118 | 0.8 | % | ||||||
Depreciation and amortization | 3,377 | 3,726 | (349 | ) | (9.4 | )% | |||||
EBITDA | 51,649 | 49,649 | 2,000 | 4.0 | % | ||||||
Legal and other costs | 1,149 | 1,617 | (468 | ) | |||||||
Other adjustments | (141 | ) | (105 | ) | (36 | ) | |||||
U.K. related costs | — | 7,817 | (7,817 | ) | |||||||
Share-based compensation | 3,194 | 2,172 | 1,022 | ||||||||
Loss from equity method investment | 1,618 | — | 1,618 | ||||||||
Adjusted EBITDA | $ | 57,469 | $ | 61,150 | $ | (3,681 | ) | (6.0 | )% | ||
# - Variance greater than 100% or not meaningful. |
Canada Segment Results | Three Months Ended March 31, | ||||||||||
2020 | 2019 | Change $ | Change % | ||||||||
Revenue | $ | 59,038 | $ | 51,820 | $ | 7,218 | 13.9 | % | |||
Provision for losses | 27,495 | 17,405 | 10,090 | 58.0 | % | ||||||
Net revenue | 31,543 | 34,415 | (2,872 | ) | (8.3 | )% | |||||
Advertising costs | 1,274 | 1,432 | (158 | ) | (11.0 | )% | |||||
Non-advertising costs of providing services | 18,110 | 17,289 | 821 | 4.7 | % | ||||||
Total cost of providing services | 19,384 | 18,721 | 663 | 3.5 | % | ||||||
Gross margin | 12,159 | 15,694 | (3,535 | ) | (22.5 | )% | |||||
Corporate, district and other expenses | 5,157 | 5,208 | (51 | ) | (1.0 | )% | |||||
Interest expense | 2,478 | 2,962 | (484 | ) | (16.3 | )% | |||||
Total operating expense | 7,635 | 8,170 | (535 | ) | (6.5 | )% | |||||
Segment operating income (loss) | 4,524 | 7,524 | (3,000 | ) | (39.9 | )% | |||||
Interest expense | 2,478 | 2,962 | (484 | ) | (16.3 | )% | |||||
Depreciation and amortization | 1,160 | 1,194 | (34 | ) | (2.8 | )% | |||||
EBITDA | 8,162 | 11,680 | (3,518 | ) | (30.1 | )% | |||||
Legal and other costs | — | 135 | (135 | ) | |||||||
Other adjustments | 156 | (111 | ) | 267 | |||||||
Adjusted EBITDA | $ | 8,318 | $ | 11,704 | $ | (3,386 | ) | (28.9 | )% | ||
# - Change greater than 100% or not meaningful. |
Canada Segment Results | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2020 | 2019 | Change $ | Change % | 2020 | 2019 | Change $ | Change % | ||||||||||||||||||||||
Revenue | $ | 49,155 | $ | 60,195 | $ | (11,040) | (18.3) | % | $ | 153,382 | $ | 166,269 | $ | (12,887) | (7.8) | % | |||||||||||||
Provision for losses | 11,265 | 20,870 | (9,605) | (46.0) | % | 47,923 | 57,733 | (9,810) | (17.0) | % | |||||||||||||||||||
Net revenue | 37,890 | 39,325 | (1,435) | (3.6) | % | 105,459 | 108,536 | (3,077) | (2.8) | % | |||||||||||||||||||
Advertising | 1,020 | 2,238 | (1,218) | (54.4) | % | 2,775 | 5,271 | (2,496) | (47.4) | % | |||||||||||||||||||
Non-advertising costs of providing services | 16,684 | 17,698 | (1,014) | (5.7) | % | 50,700 | 52,068 | (1,368) | (2.6) | % | |||||||||||||||||||
Total cost of providing services | 17,704 | 19,936 | (2,232) | (11.2) | % | 53,475 | 57,339 | (3,864) | (6.7) | % | |||||||||||||||||||
Gross margin | 20,186 | 19,389 | 797 | 4.1 | % | 51,984 | 51,197 | 787 | 1.5 | % | |||||||||||||||||||
Corporate, district and other expenses | 5,155 | 5,768 | (613) | (10.6) | % | 17,462 | 16,617 | 845 | 5.1 | % | |||||||||||||||||||
Interest expense | 2,276 | 2,487 | (211) | (8.5) | % | 6,952 | 7,831 | (879) | (11.2) | % | |||||||||||||||||||
Total operating expense | 7,431 | 8,255 | (824) | (10.0) | % | 24,414 | 24,448 | (34) | (0.1) | % | |||||||||||||||||||
Segment operating income | 12,755 | 11,134 | 1,621 | 14.6 | % | 27,570 | 26,749 | 821 | 3.1 | % | |||||||||||||||||||
Interest expense | 2,276 | 2,487 | (211) | (8.5) | % | 6,952 | 7,831 | (879) | (11.2) | % | |||||||||||||||||||
Depreciation and amortization | 1,130 | 1,219 | (89) | (7.3) | % | 3,398 | 3,627 | (229) | (6.3) | % | |||||||||||||||||||
EBITDA(1) | 16,161 | 14,840 | 1,321 | 8.9 | % | 37,920 | 38,207 | (287) | (0.8) | % | |||||||||||||||||||
Legal and related costs | — | — | — | — | 135 | (135) | |||||||||||||||||||||||
Canada GST adjustment | — | — | — | 2,160 | — | 2,160 | |||||||||||||||||||||||
Other adjustments | 143 | 441 | (298) | 580 | 297 | 283 | |||||||||||||||||||||||
Adjusted EBITDA(1) | $ | 16,304 | $ | 15,281 | $ | 1,023 | 6.7 | % | $ | 40,660 | $ | 38,639 | $ | 2,021 | 5.2 | % | |||||||||||||
(1) These are non-GAAP metrics. For a description and reconciliation of each Non-GAAP metric, see "Supplemental Non-GAAP Financial Information." | |||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2020 | 2019 | Change $ | Change % | 2020 | 2019 | Change $ | Change % | ||||||||||||||||||||||
Net income from continuing operations | $ | 12,881 | $ | 27,987 | $ | (15,106) | (54.0) | % | $ | 69,974 | $ | 74,327 | $ | (4,353) | (5.9) | ||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Legal and related costs (1) | 1,415 | 870 | 3,502 | 2,622 | |||||||||||||||||||||||||
U.K. related costs (2) | — | 348 | — | 8,844 | |||||||||||||||||||||||||
(Income) loss from equity method investment (3) | (3,530) | 1,384 | (2,653) | 5,132 | |||||||||||||||||||||||||
Share-based compensation (4) | 3,392 | 2,771 | 9,896 | 7,587 | |||||||||||||||||||||||||
Intangible asset amortization | 750 | 751 | 2,246 | 2,308 | |||||||||||||||||||||||||
Canada GST adjustment (5) | — | — | 2,160 | — | |||||||||||||||||||||||||
Income tax valuations (6) | — | — | (3,472) | — | |||||||||||||||||||||||||
Impact of tax law changes (7) | (2,137) | — | (11,251) | — | |||||||||||||||||||||||||
Cumulative tax effect of adjustments (8) | (1,445) | (1,232) | (4,630) | (5,554) | |||||||||||||||||||||||||
Adjusted Net Income | $ | 11,326 | $ | 32,879 | $ | (21,553) | (65.6) | % | $ | 65,772 | $ | 95,266 | $ | (29,494) | (31.0) | % | |||||||||||||
Net income from continuing operations | $ | 12,881 | $ | 27,987 | $ | 69,974 | $ | 74,327 | |||||||||||||||||||||
Diluted Weighted Average Shares Outstanding | 41,775 | 46,010 | 41,660 | 46,887 | |||||||||||||||||||||||||
Diluted Earnings per Share from continuing operations | $ | 0.31 | $ | 0.61 | $ | (0.30) | (49.2) | % | $ | 1.68 | $ | 1.59 | $ | 0.09 | 5.7 | ||||||||||||||
Per Share impact of adjustments to Net income | (0.04) | 0.10 | (0.10) | 0.44 | |||||||||||||||||||||||||
Adjusted Diluted Earnings per Share | $ | 0.27 | $ | 0.71 | $ | (0.44) | (62.0) | % | $ | 1.58 | $ | 2.03 | $ | (0.45) | (22.2) | % | |||||||||||||
Note: Footnotes follow Reconciliation of Adjusted EBITDA table immediately below. |
Three Months Ended March 31, | |||||||||||
2020 | 2019 | Change $ | Change % | ||||||||
Net income from continuing operations | $ | 36,013 | $ | 28,673 | $ | 7,340 | 25.6 | % | |||
Adjustments: | |||||||||||
Legal and related costs (1) | 1,149 | 1,752 | |||||||||
U.K. related costs (2) | — | 7,817 | |||||||||
Loss from equity method investment (3) | 1,618 | — | |||||||||
Share-based compensation (4) | 3,194 | 2,172 | |||||||||
Intangible asset amortization | 737 | 796 | |||||||||
Impact of tax law changes (5) | (9,114 | ) | — | ||||||||
Cumulative tax effect of adjustments (6) | (1,321 | ) | (3,260 | ) | |||||||
Adjusted Net Income | $ | 32,276 | $ | 37,950 | $ | (5,674 | ) | (15.0 | )% | ||
Net income from continuing operations | $ | 36,013 | $ | 28,673 | |||||||
Diluted Weighted Average Shares Outstanding | 41,892 | 47,319 | |||||||||
Diluted Earnings per Share from continuing operations | $ | 0.86 | $ | 0.61 | $ | 0.25 | 41.0 | % | |||
Per Share impact of adjustments to Net income | (0.09 | ) | 0.19 | ||||||||
Adjusted Diluted Earnings per Share | $ | 0.77 | $ | 0.80 | $ | (0.03 | ) | (3.8 | )% | ||
Note: Footnotes follow Reconciliation of Adjusted EBITDA table immediately below. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2020 | 2019 | Change $ | Change % | 2020 | 2019 | Change $ | Change % | ||||||||||||||||||||||
Net income from continuing operations | $ | 12,881 | $ | 27,987 | $ | (15,106) | (54.0) | % | $ | 69,974 | $ | 74,327 | $ | (4,353) | (5.9) | ||||||||||||||
(Benefit) provision for income taxes | (822) | 11,239 | (12,061) | # | 2,183 | 28,738 | (26,555) | (92.4) | |||||||||||||||||||||
Interest expense | 18,383 | 17,364 | 1,019 | 5.9 | % | 54,018 | 52,077 | 1,941 | 3.7 | ||||||||||||||||||||
Depreciation and amortization | 4,358 | 4,609 | (251) | (5.4) | % | 13,312 | 14,180 | (868) | (6.1) | % | |||||||||||||||||||
EBITDA | 34,800 | 61,199 | (26,399) | (43.1) | % | 139,487 | 169,322 | (29,835) | (17.6) | ||||||||||||||||||||
Legal and related costs (1) | 1,415 | 870 | 3,502 | 2,622 | |||||||||||||||||||||||||
U.K. related costs (2) | — | 348 | — | 8,844 | |||||||||||||||||||||||||
(Income) loss from equity method investment (3) | (3,530) | 1,384 | (2,653) | 5,132 | |||||||||||||||||||||||||
Share-based compensation (4) | 3,392 | 2,771 | 9,896 | 7,587 | |||||||||||||||||||||||||
Canada GST adjustment (5) | — | — | 2,160 | — | |||||||||||||||||||||||||
Other adjustments (9) | 38 | 483 | 639 | 91 | |||||||||||||||||||||||||
Adjusted EBITDA | $ | 36,115 | $ | 67,055 | $ | (30,940) | (46.1) | % | $ | 153,031 | $ | 193,598 | $ | (40,567) | (21.0) | % | |||||||||||||
Adjusted EBITDA Margin | 19.8 | % | 22.6 | % | 23.7 | 23.1 | % | ||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2020 | 2019 | Change $ | Change % | ||||||||
Net income from continuing operations | $ | 36,013 | $ | 28,673 | $ | 7,340 | 25.6 | % | |||
Provision for income taxes | 1,937 | 10,046 | (8,109 | ) | (80.7 | )% | |||||
Interest expense | 17,324 | 17,690 | (366 | ) | (2.1 | )% | |||||
Depreciation and amortization | 4,537 | 4,920 | (383 | ) | (7.8 | )% | |||||
EBITDA | 59,811 | 61,329 | (1,518 | ) | (2.5 | )% | |||||
Legal and related costs (1) | 1,149 | 1,752 | |||||||||
U.K. related costs (2) | — | 7,817 | |||||||||
Loss from equity method investment (3) | 1,618 | — | |||||||||
Share-based compensation (4) | 3,194 | 2,172 | |||||||||
Other adjustments (7) | 15 | (216 | ) | ||||||||
Adjusted EBITDA | $ | 65,787 | $ | 72,854 | $ | (7,067 | ) | (9.7 | )% | ||
Adjusted EBITDA Margin | 23.4 | % | 26.2 | % |
(1) | Legal and Legal and | ||||
(2) | U.K. related costs of | ||||
(3) | The The loss from equity method investment for the nine months ended September 30, 2019 of $5.1 million includes (i) our share of the estimated U.S. GAAP net loss of | ||||
(4) | |||||
(5) | We received a Notice of Adjustment from Canadian tax authority auditors in the second quarter 2020 | ||||
(6) | During the nine months ended September 30, 2020, a Texas court ruling related to the apportionment of income to the state for another company resulted in a change in estimate regarding the realization of a tax benefit previously taken. Accordingly, we recorded a $1.1 million liability for our estimated exposure related to this position. Also in the nine months ended September 30, 2020, we released a $4.6 million valuation allowance related to NOLs | ||||
(7) | For the nine months ended September 30, 2020, | ||||
Cumulative tax effect of adjustments included in Reconciliation of Net income from continuing operations to EBITDA and Adjusted EBITDA table is calculated using the estimated incremental tax rate by country. | |||||
Other adjustments primarily include the intercompany |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | 2020 | 2019 | $ Change | % Change | ||||||||||||||||||||||||||||
Average Exchange Rates for the Canadian Dollar | $ | 0.7504 | $ | 0.7576 | ($0.0072) | (1.0) | % | $ | 0.7391 | $ | 0.7526 | ($0.0135) | (1.8) | % | |||||||||||||||||||||
Average Exchange Rates | ||||||||||||
Three Months Ended March 31, | Change | |||||||||||
2020 | 2019 | $ | % | |||||||||
Canadian Dollar | $ | 0.7456 | $ | 0.7525 | ($0.0069 | ) | (0.9 | )% |
September 30, | December 31, | Change | |||||||||||||||
2020 | 2019 | $ | % | ||||||||||||||
Exchange Rate for the Canadian Dollar | $ | 0.7472 | $ | 0.7683 | ($0.0211) | (2.7) | % | ||||||||||
Exchange Rate as of | ||||||||||||
March 31, | December 31, | Change | ||||||||||
2020 | 2019 | $ | % | |||||||||
Canadian Dollar | $ | 0.7012 | $ | 0.7683 | ($0.0671 | ) | (8.7 | )% |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | 2020 | 2019 | $ Change | % Change | |||||||||||||||||||||||||||||||
Canada – constant currency basis: | ||||||||||||||||||||||||||||||||||||||
Revenues | $ | 49,618 | $ | 60,195 | $ | (10,577) | (17.6) | % | $ | 156,026 | $ | 166,269 | $ | (10,243) | (6.2) | % | ||||||||||||||||||||||
Gross Margin | 20,365 | 19,389 | 976 | 5.0 | % | 52,861 | 51,197 | 1,664 | 3.3 | % | ||||||||||||||||||||||||||||
Three Months Ended March 31, | Change | ||||||||||||||
(in thousands, unaudited) | 2020 | 2019 | $ | % | |||||||||||
Canada – constant currency basis: | |||||||||||||||
Revenues | $ | 59,563 | $ | 51,820 | $ | 7,743 | 14.9 | % | |||||||
Gross Margin | 12,090 | 15,694 | (3,604 | ) | (23.0 | )% |
September 30, | December 31, | Change | |||||||||||||||||||||
2020 | 2019 | $ | % | ||||||||||||||||||||
Canada – constant currency basis: | |||||||||||||||||||||||
Gross loans receivable | $ | 300,409 | $ | 302,375 | $ | (1,966) | (0.7) | % | |||||||||||||||
March 31, | December 31, | Change | ||||||||||||
(in thousands, unaudited) | 2020 | 2019 | $ | % | ||||||||||
Canada – constant currency basis: | ||||||||||||||
Gross loans receivable | $ | 302,762 | $ | 302,376 | $ | 386 | 0.1 | % |
Capacity | Interest Rate | Maturity | Counter-parties | Balance as of September 30, 2020 | ||||||||||||||||
Non-Recourse Canada SPV Facility (1) | C$175.0 million | 3-Mo CDOR + 6.75% | September 2, 2023 | Waterfall Asset Management | $ | 91,010 | ||||||||||||||
Senior Secured Revolving Credit Facility | $50.0 million | 1-Mo LIBOR + 5.00% | June 30, 2021 | BayCoast Bank; Stride Bank; Hancock-Whitney Bank; Metropolitan Commercial Bank | — | |||||||||||||||
Non-Recourse U.S. SPV Facility | $200.0 million | 1-Mo LIBOR + 6.25(2) | April 8, 2024 | Atalaya Capital Management | 28,884 | |||||||||||||||
Cash Money Revolving Credit Facility (1) | C$10.0 million | Canada Prime Rate +1.95% | On-demand | Royal Bank of Canada | — | |||||||||||||||
8.25% Senior Secured Notes (due 2025) | $690.0 million | 8.25% | September 1, 2025 | 679,566 | ||||||||||||||||
(1) Capacity amounts are denominated in Canadian dollars, while outstanding balances as of September 30, 2020 are denominated in U.S. dollars. | ||||||||||||||||||||
(2) The Non-Recourse U.S. SPV Facility initially provided for $100.0 million of borrowing capacity and, on July 31, 2020, additional commitments were obtained increasing capacity to $200.0 million. As a result of the increase in commitments, interest now accrues at an annual rate of one-month LIBOR (with a floor of 1.65%) plus the lesser of (a) 6.95% and (b) the sum of (i) 6.25% on balances up to $145.5 million and (ii) 9.75% on balances greater than $145.5 million. |
Capacity | Interest Rate | Maturity | Counter-parties | Balance as of March 31, 2020 | ||||
Non-Recourse Canada SPV Facility (1) | C$175.0 million | 3-Mo CDOR + 6.75% | September 2, 2023 | Waterfall Asset Management | $ | 84,724 | ||
Senior Secured Revolving Credit Facility | $50.0 million | 1-Mo LIBOR + 5.00% | June 30, 2021 | BayCoast Bank; Stride Bank; Hancock-Whitney Bank; Metropolitan Commercial Bank | 25,000 | |||
Non-Recourse U.S. SPV Facility (2) | $100.0 million | 1-Mo LIBOR + 5.75% or 9.75%(3) | April 8, 2024 | Atalaya Capital Management | — | |||
Cash Money Revolving Credit Facility (1) | C$10.0 million | Canada Prime Rate +1.95% | On-demand | Royal Bank of Canada | — | |||
8.25% Senior Secured Notes (due 2025) | $690.0 million | 8.25% | September 1, 2025 | $ | 678,727 | |||
(1) Capacity amounts are denominated in Canadian dollars, while outstanding balances as of March 31, 2020 are denominated in U.S. dollars. | ||||||||
(2) We entered into the Non-Recourse U.S. SPV Facility on April 8, 2020, and drew $35.2 million on the facility at such time. | ||||||||
(3) The Non-Recourse U.S. SPV Facility provides for $100.0 million of borrowing capacity and, subject to obtaining additional commitments thereunder, the ability to expand such capacity up to $200.0 million. Prior to the increase in commitments, interest accrues at an annual rate of one-month LIBOR plus 9.75% and after the increase in commitments, one-month LIBOR plus 5.75%. |
September 30, 2020 | |||||||||||||||||||||||
(dollars in thousands) | CURO | Subsidiary Guarantors | U.S. SPV | Canada SPV | Subsidiary Non-Guarantors | Eliminations | CURO Consolidated | ||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 148,530 | $ | — | $ | — | $ | 58,541 | $ | — | $ | 207,071 | |||||||||
Restricted cash | — | 25,797 | 9,179 | 24,517 | 3,034 | — | 62,527 | ||||||||||||||||
Loans receivable, net | — | 102,858 | 55,376 | 218,683 | 39,943 | — | 416,860 | ||||||||||||||||
Income taxes receivable | 57,303 | (24,444) | — | — | 2,355 | — | 35,214 | ||||||||||||||||
Prepaid expenses and other | — | 20,028 | 455 | 710 | 7,066 | — | 28,259 | ||||||||||||||||
Property and equipment, net | — | 38,047 | — | — | 23,634 | — | 61,681 | ||||||||||||||||
Investments | — | 23,908 | — | — | — | — | 23,908 | ||||||||||||||||
Right of use asset - operating leases | — | 71,632 | — | — | 39,423 | — | 111,055 | ||||||||||||||||
Deferred tax assets | 18,245 | (18,245) | — | — | — | — | — | ||||||||||||||||
Goodwill | — | 105,922 | — | — | 28,667 | — | 134,589 | ||||||||||||||||
Other intangibles, net | — | 15,477 | — | — | 21,742 | — | 37,219 | ||||||||||||||||
Intercompany receivable | — | 154,020 | — | — | — | (154,020) | — | ||||||||||||||||
Investment in subsidiaries | 160,797 | — | — | — | — | (160,797) | — | ||||||||||||||||
Other assets | — | 7,488 | — | — | 663 | — | 8,151 | ||||||||||||||||
Total assets | $ | 236,345 | $ | 671,018 | $ | 65,010 | $ | 243,910 | $ | 225,068 | $ | (314,817) | $ | 1,126,534 | |||||||||
Liabilities and Stockholders' equity (deficit): | |||||||||||||||||||||||
Accounts payable and accrued liabilities | $ | (52) | $ | 40,921 | $ | — | $ | 26,665 | $ | (15,787) | $ | — | $ | 51,747 | |||||||||
Deferred revenue | — | 3,367 | 105 | 32 | 1,716 | — | 5,220 | ||||||||||||||||
Lease liability - operating leases | — | 79,439 | — | — | 39,392 | — | 118,831 | ||||||||||||||||
Income taxes payable | (8,164) | 8,164 | — | — | — | — | — | ||||||||||||||||
Accrued interest | 4,745 | — | 300 | 683 | — | — | 5,728 | ||||||||||||||||
Liability for losses on CSO lender-owned consumer loans | — | 6,198 | — | — | — | — | 6,198 | ||||||||||||||||
Debt | 679,566 | — | 28,884 | 91,010 | — | — | 799,460 | ||||||||||||||||
Intercompany payable | — | 2,330 | (2,330) | 37,511 | 116,509 | (154,020) | — | ||||||||||||||||
Payable to CURO Holdings Corp. | (565,230) | 565,230 | — | — | — | — | — | ||||||||||||||||
Other long-term liabilities | — | 13,311 | — | — | 65 | — | 13,376 | ||||||||||||||||
Deferred tax liabilities | 12,927 | — | — | (100) | 594 | — | 13,421 | ||||||||||||||||
Total liabilities | 123,792 | 718,960 | 26,959 | 155,801 | 142,489 | (154,020) | 1,013,981 | ||||||||||||||||
Stockholders' equity (deficit) | 112,553 | (47,942) | 38,051 | 88,109 | 82,579 | (160,797) | 112,553 | ||||||||||||||||
Total liabilities and stockholders' equity (deficit) | $ | 236,345 | $ | 671,018 | $ | 65,010 | $ | 243,910 | $ | 225,068 | $ | (314,817) | $ | 1,126,534 |
March 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | CURO | Subsidiary Guarantors | Canada SPV | Subsidiary Non-Guarantors | Eliminations | CURO Consolidated | (dollars in thousands) | CURO | Subsidiary Guarantors | Canada SPV | Subsidiary Non-Guarantors | Eliminations | CURO Consolidated | ||||||||||||||||||||||||||||
Assets: | Assets: | ||||||||||||||||||||||||||||||||||||||||
Cash | $ | — | $ | 107,208 | $ | — | $ | 31,506 | $ | — | $ | 138,714 | |||||||||||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | — | $ | 44,727 | $ | — | $ | 30,515 | $ | — | $ | 75,242 | ||||||||||||||||||||||||||||
Restricted cash | — | 17,069 | 22,317 | 2,141 | — | 41,527 | Restricted cash | — | 14,958 | 17,427 | 2,394 | — | 34,779 | ||||||||||||||||||||||||||||
Loans receivable, net | — | 221,408 | 203,837 | 39,350 | — | 464,595 | Loans receivable, net | — | 286,881 | 220,067 | 52,045 | — | 558,993 | ||||||||||||||||||||||||||||
Right of use asset - operating leases | — | 76,528 | — | 37,744 | — | 114,272 | |||||||||||||||||||||||||||||||||||
Deferred income taxes | 13,190 | (13,190 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||||
Income taxes receivable | 47,236 | (24,444 | ) | — | 1,643 | — | 24,435 | Income taxes receivable | 19,690 | (8,987) | — | 723 | — | 11,426 | |||||||||||||||||||||||||||
Prepaid expenses and other | — | 26,008 | — | 8,112 | — | 34,120 | Prepaid expenses and other | — | 26,623 | — | 9,267 | — | 35,890 | ||||||||||||||||||||||||||||
Property and equipment, net | — | 42,536 | — | 24,251 | — | 66,787 | Property and equipment, net | — | 43,618 | — | 27,193 | — | 70,811 | ||||||||||||||||||||||||||||
Investments | Investments | — | 10,068 | — | — | — | 10,068 | ||||||||||||||||||||||||||||||||||
Right of use asset - operating leases | Right of use asset - operating leases | — | 74,845 | — | 42,608 | — | 117,453 | ||||||||||||||||||||||||||||||||||
Deferred tax asset | Deferred tax asset | 8,561 | (3,506) | — | — | — | 5,055 | ||||||||||||||||||||||||||||||||||
Goodwill | — | 105,922 | — | 26,903 | — | 132,825 | Goodwill | — | 91,131 | — | 29,478 | — | 120,609 | ||||||||||||||||||||||||||||
Other intangibles, net | — | 13,540 | — | 20,404 | — | 33,944 | Other intangibles, net | — | 11,569 | — | 22,358 | — | 33,927 | ||||||||||||||||||||||||||||
Intercompany receivable | — | 135,608 | — | — | (135,608 | ) | — | Intercompany receivable | — | 113,599 | — | — | (113,599) | — | |||||||||||||||||||||||||||
Investment in subsidiaries | 91,206 | — | — | — | (91,206 | ) | — | Investment in subsidiaries | 84,514 | — | — | — | (84,514) | — | |||||||||||||||||||||||||||
Other assets | — | 14,910 | — | 637 | — | 15,547 | Other assets | — | 6,938 | — | 704 | — | 7,642 | ||||||||||||||||||||||||||||
Total assets | $ | 151,632 | $ | 723,103 | $ | 226,154 | $ | 192,691 | $ | (226,814 | ) | $ | 1,066,766 | Total assets | $ | 112,765 | $ | 712,464 | $ | 237,494 | $ | 217,285 | $ | (198,113) | $ | 1,081,895 | |||||||||||||||
Liabilities and Stockholders' equity (deficit): | |||||||||||||||||||||||||||||||||||||||||
Liabilities and Stockholder's equity (deficit): | Liabilities and Stockholder's equity (deficit): | ||||||||||||||||||||||||||||||||||||||||
Accounts payable and accrued liabilities | $ | (2 | ) | $ | 43,133 | $ | 13,267 | $ | (2,795 | ) | $ | — | $ | 53,603 | Accounts payable and accrued liabilities | $ | 465 | $ | 48,333 | $ | 13,462 | $ | (2,177) | $ | — | $ | 60,083 | ||||||||||||||
Deferred revenue | — | 4,427 | 39 | 2,189 | — | 6,655 | Deferred revenue | — | 6,828 | 46 | 3,296 | — | 10,170 | ||||||||||||||||||||||||||||
Lease liability - operating leases | — | 84,135 | — | 37,580 | — | 121,715 | Lease liability - operating leases | — | 82,593 | — | 42,406 | — | 124,999 | ||||||||||||||||||||||||||||
Accrued interest | 4,744 | 21 | 627 | — | — | 5,392 | Accrued interest | 18,975 | 1 | 871 | — | — | 19,847 | ||||||||||||||||||||||||||||
Payable to CURO Holdings Corp. | (600,336 | ) | 600,336 | — | — | — | — | Payable to CURO Holdings Corp. | (635,511) | 635,511 | — | — | — | — | |||||||||||||||||||||||||||
CSO liability for losses | — | 9,189 | — | — | — | 9,189 | |||||||||||||||||||||||||||||||||||
Liability for losses on CSO lender-owned consumer loans | Liability for losses on CSO lender-owned consumer loans | — | 10,623 | — | — | — | 10,623 | ||||||||||||||||||||||||||||||||||
Debt | 678,727 | 24,850 | 84,874 | — | — | 788,451 | Debt | 678,323 | — | 112,221 | — | — | 790,544 | ||||||||||||||||||||||||||||
Intercompany payable | — | — | 80,240 | 55,368 | (135,608 | ) | — | Intercompany payable | — | — | 69,639 | 43,960 | (113,599) | — | |||||||||||||||||||||||||||
Other liabilities | — | 8,932 | — | 163 | — | 9,095 | Other liabilities | — | 10,285 | — | 379 | — | 10,664 | ||||||||||||||||||||||||||||
Deferred tax liabilities | 8,928 | — | — | 4,167 | — | 13,095 | |||||||||||||||||||||||||||||||||||
Liabilities from discontinued operations | Liabilities from discontinued operations | — | — | — | 4,452 | — | 4,452 | ||||||||||||||||||||||||||||||||||
Total liabilities | 92,061 | 775,023 | 179,047 | 96,672 | (135,608 | ) | 1,007,195 | Total liabilities | 62,252 | 794,174 | 196,239 | 92,316 | (113,599) | 1,031,382 | |||||||||||||||||||||||||||
Stockholders' equity (deficit) | 59,571 | (51,920 | ) | 47,107 | 96,019 | (91,206 | ) | 59,571 | Stockholders' equity (deficit) | 50,513 | (81,710) | 41,255 | 124,969 | (84,514) | 50,513 | ||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 151,632 | $ | 723,103 | $ | 226,154 | $ | 192,691 | $ | (226,814 | ) | $ | 1,066,766 | ||||||||||||||||||||||||||||
Total liabilities and stockholders' equity (deficit) | Total liabilities and stockholders' equity (deficit) | $ | 112,765 | $ | 712,464 | $ | 237,494 | $ | 217,285 | $ | (198,113) | $ | 1,081,895 |
December 31, 2019 | ||||||||||||||||||
(dollars in thousands) | CURO | Subsidiary Guarantors | Canada SPV | Subsidiary Non-Guarantors | Eliminations | CURO Consolidated | ||||||||||||
Assets: | ||||||||||||||||||
Cash | $ | — | $ | 44,727 | $ | — | $ | 30,515 | $ | — | $ | 75,242 | ||||||
Restricted cash | — | 14,958 | 17,427 | 2,394 | — | 34,779 | ||||||||||||
Loans receivable, net | — | 286,881 | 220,067 | 52,045 | — | 558,993 | ||||||||||||
Right of use asset - operating leases | — | 74,845 | — | 42,608 | — | 117,453 | ||||||||||||
Deferred tax asset | 8,561 | (3,506 | ) | — | — | — | 5,055 | |||||||||||
Income taxes receivable | 19,690 | (8,987 | ) | — | 723 | — | 11,426 | |||||||||||
Prepaid expenses and other | — | 26,623 | — | 9,267 | — | 35,890 | ||||||||||||
Property and equipment, net | — | 43,618 | — | 27,193 | — | 70,811 | ||||||||||||
Goodwill | — | 91,131 | — | 29,478 | — | 120,609 | ||||||||||||
Other intangibles, net | — | 11,569 | — | 22,358 | — | 33,927 | ||||||||||||
Intercompany receivable | — | 113,599 | — | — | (113,599 | ) | — | |||||||||||
Investment in subsidiaries | 84,514 | — | — | — | (84,514 | ) | — | |||||||||||
Other assets | — | 17,006 | — | 704 | — | 17,710 | ||||||||||||
Total assets | $ | 112,765 | $ | 712,464 | $ | 237,494 | $ | 217,285 | $ | (198,113 | ) | $ | 1,081,895 | |||||
Liabilities and Stockholder's equity: | ||||||||||||||||||
Accounts payable and accrued liabilities | $ | 465 | $ | 48,333 | $ | 13,462 | $ | (2,177 | ) | $ | — | $ | 60,083 | |||||
Deferred revenue | — | 6,828 | 46 | 3,296 | — | 10,170 | ||||||||||||
Lease liability - operating leases | — | 82,593 | — | 42,406 | — | 124,999 | ||||||||||||
Accrued interest | 18,975 | 1 | 871 | — | — | 19,847 | ||||||||||||
Payable to CURO Holdings Corp. | (635,511 | ) | 635,511 | — | — | — | — | |||||||||||
CSO liability for losses | — | 10,623 | — | — | — | 10,623 | ||||||||||||
Debt | 678,323 | — | 112,221 | — | — | 790,544 | ||||||||||||
Intercompany payable | — | — | 69,639 | 43,960 | (113,599 | ) | — | |||||||||||
Other liabilities | — | 10,285 | — | 379 | — | 10,664 | ||||||||||||
Liabilities from discontinued operations | — | — | — | 4,452 | — | 4,452 | ||||||||||||
Total liabilities | (73,013 | ) | 794,174 | 196,239 | 142,668 | (113,599 | ) | 1,031,382 | ||||||||||
Stockholders' equity | 50,513 | (81,710 | ) | 41,255 | $ | 124,969 | (84,514 | ) | 50,513 | |||||||||
Total liabilities and stockholders' equity | $ | (92,114 | ) | $ | 712,464 | $ | 237,494 | $ | 267,637 | $ | (198,113 | ) | $ | 1,081,895 |
Three Months Ended September 30, 2020 | |||||||||||||||||||||||
(dollars in thousands) | CURO | Subsidiary Guarantors | U.S. SPV | Canada SPV | Subsidiary Non-Guarantors | Eliminations | CURO Consolidated | ||||||||||||||||
Revenue | $ | — | $ | 89,212 | $ | 43,636 | $ | 32,936 | $ | 16,219 | $ | — | $ | 182,003 | |||||||||
Provision for losses | — | 24,016 | 19,469 | 9,191 | 2,074 | — | 54,750 | ||||||||||||||||
Net revenue | — | 65,196 | 24,167 | 23,745 | 14,145 | — | 127,253 | ||||||||||||||||
Cost of providing services: | |||||||||||||||||||||||
Salaries and benefits | — | 16,075 | — | — | 8,171 | — | 24,246 | ||||||||||||||||
Occupancy | — | 7,896 | — | — | 5,982 | — | 13,878 | ||||||||||||||||
Office | — | 3,858 | — | — | 1,200 | — | 5,058 | ||||||||||||||||
Other costs of providing services | — | 4,745 | — | — | 1,331 | — | 6,076 | ||||||||||||||||
Advertising | — | 13,405 | — | — | 1,020 | — | 14,425 | ||||||||||||||||
Total cost of providing services | — | 45,979 | — | — | 17,704 | — | 63,683 | ||||||||||||||||
Gross margin | — | 19,217 | 24,167 | 23,745 | (3,559) | — | 63,570 | ||||||||||||||||
Operating expense (income): | |||||||||||||||||||||||
Corporate, district and other expenses | 3,558 | 27,836 | 109 | 139 | 5,016 | — | 36,658 | ||||||||||||||||
Intercompany management fee | — | (3,995) | — | 1,209 | 2,786 | — | — | ||||||||||||||||
Interest expense (income) | 14,653 | 29 | 1,425 | 2,356 | (80) | — | 18,383 | ||||||||||||||||
Income from equity method investment | — | (3,530) | — | — | — | — | (3,530) | ||||||||||||||||
Intercompany interest (income) expense | — | (5,090) | — | 560 | 4,530 | — | — | ||||||||||||||||
Total operating expense | 18,211 | 15,250 | 1,534 | 4,264 | 12,252 | — | 51,511 | ||||||||||||||||
(Loss) income from continuing operations before income taxes | (18,211) | 3,967 | 22,633 | 19,481 | (15,811) | — | 12,059 | ||||||||||||||||
(Benefit) provision for income taxes | (10,189) | 8,346 | — | (101) | 1,122 | — | (822) | ||||||||||||||||
Net (loss) income from continuing operations | (8,022) | (4,379) | 22,633 | 19,582 | (16,933) | — | 12,881 | ||||||||||||||||
Net income on discontinued operations | — | — | — | — | — | — | — | ||||||||||||||||
Net (loss) income | (8,022) | (4,379) | 22,633 | 19,582 | (16,933) | — | 12,881 | ||||||||||||||||
Equity in net income (loss) of subsidiaries: | |||||||||||||||||||||||
CFTC | 20,903 | — | — | — | — | (20,903) | — | ||||||||||||||||
Guarantor Subsidiaries | — | (4,379) | — | — | — | 4,379 | — | ||||||||||||||||
Non-Guarantor Subsidiaries | — | (16,933) | — | — | — | 16,933 | — | ||||||||||||||||
U.S. SPV | — | 22,633 | — | — | — | (22,633) | — | ||||||||||||||||
Canada SPV | — | 19,582 | — | — | — | (19,582) | — | ||||||||||||||||
Net income (loss) attributable to CURO | $ | 12,881 | $ | 16,524 | $ | 22,633 | $ | 19,582 | $ | (16,933) | $ | (41,806) | $ | 12,881 |
Three Months Ended March 31, 2020 | Three Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||
(dollars in thousands) | CURO | Subsidiary Guarantors | Canada SPV | Subsidiary Non-Guarantors | Eliminations | CURO Consolidated | (dollars in thousands) | CURO | Subsidiary Guarantors | Canada SPV | Subsidiary Non-Guarantors | Eliminations | CURO Consolidated | |||||||||||||||||||||||||
Revenue | $ | — | $ | 221,768 | $ | 34,026 | $ | 25,012 | $ | — | $ | 280,806 | Revenue | $ | — | $ | 237,069 | $ | 30,211 | $ | 29,984 | $ | — | $ | 297,264 | |||||||||||||
Provision for losses | — | 86,041 | 19,732 | 7,763 | — | 113,536 | Provision for losses | — | 102,997 | 13,679 | 7,191 | — | 123,867 | |||||||||||||||||||||||||
Net revenue | — | 135,727 | 14,294 | 17,249 | — | 167,270 | Net revenue | — | 134,072 | 16,532 | 22,793 | — | 173,397 | |||||||||||||||||||||||||
Cost of providing services: | Cost of providing services: | |||||||||||||||||||||||||||||||||||||
Salaries and benefits | — | 16,912 | — | 9,095 | — | 26,007 | Salaries and benefits | — | 18,301 | — | 9,161 | — | 27,462 | |||||||||||||||||||||||||
Occupancy | — | 7,825 | — | 6,191 | — | 14,016 | Occupancy | — | 8,249 | — | 5,787 | — | 14,036 | |||||||||||||||||||||||||
Office | — | 4,301 | — | 1,373 | — | 5,674 | Office | — | 4,611 | — | 1,382 | — | 5,993 | |||||||||||||||||||||||||
Other costs of providing services | — | 8,204 | — | 1,451 | — | 9,655 | Other costs of providing services | — | 11,475 | — | 1,368 | — | 12,843 | |||||||||||||||||||||||||
Advertising | — | 10,945 | — | 1,274 | — | 12,219 | Advertising | — | 14,186 | — | 2,238 | — | 16,424 | |||||||||||||||||||||||||
Total cost of providing services | — | 48,187 | — | 19,384 | — | 67,571 | Total cost of providing services | — | 56,822 | — | 19,936 | — | 76,758 | |||||||||||||||||||||||||
Gross margin | — | 87,540 | 14,294 | (2,135 | ) | — | 99,699 | Gross margin | — | 77,250 | 16,532 | 2,857 | — | 96,639 | ||||||||||||||||||||||||
Operating expense (income): | ||||||||||||||||||||||||||||||||||||||
Operating (income) expense: | Operating (income) expense: | |||||||||||||||||||||||||||||||||||||
Corporate, district and other expenses | 3,395 | 34,255 | 174 | 4,983 | — | 42,807 | Corporate, district and other expenses | 2,967 | 29,930 | 472 | 5,296 | — | 38,665 | |||||||||||||||||||||||||
Intercompany management fee | — | (3,800 | ) | 730 | 3,070 | — | — | Intercompany management fee | — | (3,276) | 8 | 3,268 | — | — | ||||||||||||||||||||||||
Interest expense | 14,636 | 210 | 2,620 | (142 | ) | — | 17,324 | Interest expense | 14,619 | 258 | 2,463 | 24 | — | 17,364 | ||||||||||||||||||||||||
Loss from equity method investment | — | 1,618 | — | — | — | 1,618 | Loss from equity method investment | — | 1,384 | — | — | — | 1,384 | |||||||||||||||||||||||||
Intercompany interest (income) expense | — | (1,441 | ) | 550 | 891 | — | — | Intercompany interest (income) expense | — | (1,462) | 569 | 893 | — | — | ||||||||||||||||||||||||
Total operating expense | 18,031 | 30,842 | 4,074 | 8,802 | — | 61,749 | Total operating expense | 17,586 | 26,834 | 3,512 | 9,481 | — | 57,413 | |||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | (18,031 | ) | 56,698 | 10,220 | (10,937 | ) | — | 37,950 | Income (loss) from continuing operations before income taxes | (17,586) | 50,416 | 13,020 | (6,624) | — | 39,226 | |||||||||||||||||||||||
Provision (benefit) for income tax expense | (23,247 | ) | 24,998 | — | 186 | — | 1,937 | |||||||||||||||||||||||||||||||
Net income (loss) from continuing operations | 5,216 | 31,700 | 10,220 | (11,123 | ) | — | 36,013 | |||||||||||||||||||||||||||||||
Discontinued operations: | ||||||||||||||||||||||||||||||||||||||
Net income on discontinued operations | — | — | — | 292 | — | 292 | ||||||||||||||||||||||||||||||||
Net income (loss) | 5,216 | 31,700 | 10,220 | (10,831 | ) | — | 36,305 | |||||||||||||||||||||||||||||||
(Benefit) provision for income taxes | (Benefit) provision for income taxes | (4,447) | 13,700 | — | 1,986 | — | 11,239 | |||||||||||||||||||||||||||||||
Net (loss) income from continuing operations | Net (loss) income from continuing operations | (13,139) | 36,716 | 13,020 | (8,610) | — | 27,987 | |||||||||||||||||||||||||||||||
Net loss on discontinued operations | Net loss on discontinued operations | — | — | — | (598) | — | (598) | |||||||||||||||||||||||||||||||
Net (loss) income | Net (loss) income | (13,139) | 36,716 | 13,020 | (9,208) | — | 27,389 | |||||||||||||||||||||||||||||||
Equity in net income (loss) of subsidiaries: | Equity in net income (loss) of subsidiaries: | |||||||||||||||||||||||||||||||||||||
CFTC | 31,089 | — | — | — | (31,089 | ) | — | CFTC | 40,528 | — | — | — | (40,528) | — | ||||||||||||||||||||||||
Guarantor Subsidiaries | — | 31,700 | — | — | (31,700 | ) | — | Guarantor Subsidiaries | — | 36,716 | — | — | (36,716) | — | ||||||||||||||||||||||||
Non-Guarantor Subsidiaries | — | (10,831 | ) | — | — | 10,831 | — | Non-Guarantor Subsidiaries | — | (9,208) | — | — | 9,208 | — | ||||||||||||||||||||||||
SPV Subs | 10,220 | — | — | (10,220 | ) | — | ||||||||||||||||||||||||||||||||
Canada SPV | Canada SPV | — | 13,020 | — | (13,020) | — | ||||||||||||||||||||||||||||||||
Net income (loss) attributable to CURO | $ | 36,305 | $ | 62,789 | $ | 10,220 | $ | (10,831 | ) | $ | (62,178 | ) | $ | 36,305 | Net income (loss) attributable to CURO | $ | 27,389 | $ | 77,244 | $ | 13,020 | $ | (9,208) | $ | (81,056) | $ | 27,389 |
Three Months Ended March 31, 2019 | Nine Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | CURO | Subsidiary Guarantors | Canada SPV | Subsidiary Non-Guarantors | Eliminations | CURO Consolidated | (dollars in thousands) | CURO | Subsidiary Guarantors | U.S. SPV | Canada SPV | Subsidiary Non-Guarantors | Eliminations | CURO Consolidated | |||||||||||||||||||||||||||
Revenue | $ | — | $ | 226,119 | $ | 25,046 | $ | 26,774 | $ | — | $ | 277,939 | Revenue | $ | — | $ | 408,465 | $ | 83,471 | $ | 97,334 | $ | 56,048 | $ | — | $ | 645,318 | ||||||||||||||
Provision for losses | — | 84,980 | 13,306 | 4,099 | — | 102,385 | Provision for losses | — | 128,409 | 42,647 | 38,167 | 9,756 | — | 218,979 | |||||||||||||||||||||||||||
Net revenue | — | 141,139 | 11,740 | 22,675 | — | 175,554 | Net revenue | — | 280,056 | 40,824 | 59,167 | 46,292 | — | 426,339 | |||||||||||||||||||||||||||
Cost of providing services: | Cost of providing services: | ||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | — | 19,951 | — | 8,750 | — | 28,701 | Salaries and benefits | — | 49,650 | — | — | 25,326 | — | 74,976 | |||||||||||||||||||||||||||
Occupancy | — | 8,010 | — | 6,227 | — | 14,237 | Occupancy | — | 23,307 | — | — | 17,630 | — | 40,937 | |||||||||||||||||||||||||||
Office | — | 3,889 | — | 1,224 | — | 5,113 | Office | — | 10,935 | — | — | 3,597 | — | 14,532 | |||||||||||||||||||||||||||
Other costs of providing services | — | 13,132 | — | 1,088 | — | 14,220 | Other costs of providing services | — | 19,585 | — | — | 4,147 | — | 23,732 | |||||||||||||||||||||||||||
Advertising | — | 6,354 | — | 1,432 | — | 7,786 | Advertising | — | 29,619 | — | — | 2,775 | — | 32,394 | |||||||||||||||||||||||||||
Total cost of providing services | — | 51,336 | — | 18,721 | — | 70,057 | Total cost of providing services | — | 133,096 | — | — | 53,475 | — | 186,571 | |||||||||||||||||||||||||||
Gross margin | — | 89,803 | 11,740 | 3,954 | — | 105,497 | Gross margin | — | 146,960 | 40,824 | 59,167 | (7,183) | — | 239,768 | |||||||||||||||||||||||||||
Operating expense (income): | Operating expense (income): | ||||||||||||||||||||||||||||||||||||||||
Corporate, district and other expenses | 2,342 | 41,538 | 25 | 5,183 | — | 49,088 | Corporate, district and other expenses | 10,350 | 88,289 | 145 | 416 | 17,046 | — | 116,246 | |||||||||||||||||||||||||||
Intercompany management fee | — | (3,403 | ) | 8 | 3,395 | — | — | Intercompany management fee | — | (11,139) | — | 2,584 | 8,555 | — | — | ||||||||||||||||||||||||||
Interest expense | 14,438 | 290 | 2,891 | 71 | — | 17,690 | Interest expense | 43,937 | 496 | 2,633 | 7,089 | (137) | — | 54,018 | |||||||||||||||||||||||||||
Income from equity method investment | Income from equity method investment | — | (2,653) | — | — | — | — | (2,653) | |||||||||||||||||||||||||||||||||
Intercompany interest (income) expense | — | (1,071 | ) | — | 1,071 | — | — | Intercompany interest (income) expense | — | (7,973) | — | 1,643 | 6,330 | — | — | ||||||||||||||||||||||||||
Total operating expense | 16,780 | 37,354 | 2,924 | 9,720 | — | 66,778 | Total operating expense | 54,287 | 67,020 | 2,778 | 11,732 | 31,794 | — | 167,611 | |||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | (16,780 | ) | 52,449 | 8,816 | (5,766 | ) | — | 38,719 | Income (loss) from continuing operations before income taxes | (54,287) | 79,940 | 38,046 | 47,435 | (38,977) | — | 72,157 | |||||||||||||||||||||||||
Provision (benefit) for income tax expense | (5,008 | ) | 14,020 | — | 1,034 | — | 10,046 | ||||||||||||||||||||||||||||||||||
Net (loss) income from continuing operations | (11,772 | ) | 38,429 | 8,816 | (6,800 | ) | — | 28,673 | |||||||||||||||||||||||||||||||||
Discontinued operations: | |||||||||||||||||||||||||||||||||||||||||
Net loss on discontinued operations | — | — | — | 8,375 | — | 8,375 | |||||||||||||||||||||||||||||||||||
Net (loss) income | (11,772 | ) | 38,429 | 8,816 | 1,575 | — | 37,048 | ||||||||||||||||||||||||||||||||||
(Benefit) provision for income taxes | (Benefit) provision for income taxes | (36,308) | 40,848 | — | (101) | (2,256) | — | 2,183 | |||||||||||||||||||||||||||||||||
Net income (loss) from continuing operations | Net income (loss) from continuing operations | (17,979) | 39,092 | 38,046 | 47,536 | (36,721) | — | 69,974 | |||||||||||||||||||||||||||||||||
Net income on discontinued operations | Net income on discontinued operations | — | — | — | — | 1,285 | — | 1,285 | |||||||||||||||||||||||||||||||||
Net income (loss) | Net income (loss) | (17,979) | 39,092 | 38,046 | 47,536 | (35,436) | — | 71,259 | |||||||||||||||||||||||||||||||||
Equity in net income (loss) of subsidiaries: | Equity in net income (loss) of subsidiaries: | ||||||||||||||||||||||||||||||||||||||||
CFTC | 48,820 | — | — | — | (48,820 | ) | — | CFTC | 89,238 | — | — | — | — | (89,238) | — | ||||||||||||||||||||||||||
Guarantor Subsidiaries | — | 38,429 | — | — | (38,429 | ) | — | Guarantor Subsidiaries | — | 39,092 | — | — | — | (39,092) | — | ||||||||||||||||||||||||||
Non-Guarantor Subsidiaries | — | 1,575 | — | — | (1,575 | ) | — | Non-Guarantor Subsidiaries | — | (35,436) | — | — | — | 35,436 | — | ||||||||||||||||||||||||||
SPV Subs | — | 8,816 | — | (8,816 | ) | — | |||||||||||||||||||||||||||||||||||
U.S. SPV | U.S. SPV | — | 38,046 | — | — | — | (38,046) | — | |||||||||||||||||||||||||||||||||
Canada SPV | Canada SPV | — | 47,536 | — | — | — | (47,536) | — | |||||||||||||||||||||||||||||||||
Net income (loss) attributable to CURO | $ | 37,048 | $ | 87,249 | $ | 8,816 | $ | 1,575 | $ | (97,640 | ) | $ | 37,048 | Net income (loss) attributable to CURO | $ | 71,259 | $ | 128,330 | $ | 38,046 | $ | 47,536 | $ | (35,436) | $ | (178,476) | $ | 71,259 |
Nine Months Ended September 30, 2019 | ||||||||||||||||||||
(dollars in thousands) | CURO | Subsidiary Guarantors | Canada SPV | Subsidiary Non-Guarantors | Eliminations | CURO Consolidated | ||||||||||||||
Revenue | $ | — | $ | 673,234 | $ | 81,349 | $ | 84,920 | $ | — | $ | 839,503 | ||||||||
Provision for losses | — | 280,529 | 40,099 | 17,634 | — | 338,262 | ||||||||||||||
Net revenue | — | 392,705 | 41,250 | 67,286 | — | 501,241 | ||||||||||||||
Cost of providing services: | ||||||||||||||||||||
Salaries and benefits | — | 55,675 | — | 26,574 | — | 82,249 | ||||||||||||||
Occupancy | — | 24,292 | — | 17,913 | — | 42,205 | ||||||||||||||
Office | — | 12,504 | — | 4,059 | — | 16,563 | ||||||||||||||
Other costs of providing services | — | 36,395 | — | 3,522 | — | 39,917 | ||||||||||||||
Advertising | — | 31,719 | — | 5,271 | — | 36,990 | ||||||||||||||
Total cost of providing services | — | 160,585 | — | 57,339 | — | 217,924 | ||||||||||||||
Gross margin | — | 232,120 | 41,250 | 9,947 | — | 283,317 | ||||||||||||||
Operating expense (income): | ||||||||||||||||||||
Corporate, district and other expenses | 7,940 | 98,486 | (283) | 16,900 | — | 123,043 | ||||||||||||||
Intercompany management fee | — | (9,576) | 23 | 9,553 | — | — | ||||||||||||||
Interest expense | 43,671 | 575 | 7,728 | 103 | — | 52,077 | ||||||||||||||
Loss from equity method investment | — | 5,132 | — | — | — | 5,132 | ||||||||||||||
Intercompany interest (income) expense | — | (3,855) | 1,192 | 2,663 | — | — | ||||||||||||||
Total operating expense | 51,611 | 90,762 | 8,660 | 29,219 | — | 180,252 | ||||||||||||||
Income (loss) from continuing operations before income taxes | (51,611) | 141,358 | 32,590 | (19,272) | — | 103,065 | ||||||||||||||
(Benefit) provision for income taxes | (12,686) | 37,309 | — | 4,115 | — | 28,738 | ||||||||||||||
Net (loss) income from continuing operations | (38,925) | 104,049 | 32,590 | (23,387) | — | 74,327 | ||||||||||||||
Net income on discontinued operations | — | — | — | 6,943 | — | 6,943 | ||||||||||||||
Net (loss) income | (38,925) | 104,049 | 32,590 | (16,444) | — | 81,270 | ||||||||||||||
Equity in net income (loss) of subsidiaries: | ||||||||||||||||||||
CFTC | 120,195 | — | — | — | (120,195) | — | ||||||||||||||
Guarantor Subsidiaries | — | 104,049 | — | — | (104,049) | — | ||||||||||||||
Non-Guarantor Subsidiaries | — | (16,444) | — | — | 16,444 | — | ||||||||||||||
Canada SPV | 32,590 | — | — | (32,590) | — | |||||||||||||||
Net income (loss) attributable to CURO | $ | 81,270 | $ | 224,244 | $ | 32,590 | $ | (16,444) | $ | (240,390) | $ | 81,270 |
Nine Months Ended September 30, 2020 | |||||||||||||||||||||||
(dollars in thousands) | CURO | Subsidiary Guarantors | U.S. SPV | Canada SPV | Subsidiary Non-Guarantors | Eliminations | CURO Consolidated | ||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net cash provided by continuing operating activities | $ | 6,549 | $ | 143,190 | $ | 62,286 | $ | 69,115 | $ | 29,333 | $ | (727) | $ | 309,746 | |||||||||
Net cash used in discontinued operating activities | — | — | — | — | 1,714 | — | 1,714 | ||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Purchase of property and equipment | — | (6,875) | — | — | (526) | — | (7,401) | ||||||||||||||||
Originations of loans, net | — | 10,556 | (81,322) | (42,854) | (1,268) | — | (114,888) | ||||||||||||||||
Investments in Katapult | — | (11,187) | — | — | — | — | (11,187) | ||||||||||||||||
Acquisition of Ad Astra, net of acquiree's cash received | — | (14,418) | — | — | — | — | (14,418) | ||||||||||||||||
Net cash provided by (used in) continuing investing activities | — | (21,924) | (81,322) | (42,854) | (1,794) | — | (147,894) | ||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Proceeds from Non-Recourse Canada SPV facility | — | — | — | 23,357 | — | — | 23,357 | ||||||||||||||||
Payments on Non-Recourse Canada SPV facility | — | — | — | (42,131) | — | — | (42,131) | ||||||||||||||||
Proceeds from Non-Recourse U.S. SPV facility | — | — | 35,206 | — | — | — | 35,206 | ||||||||||||||||
Proceeds from credit facilities | — | 60,000 | — | — | 9,853 | — | 69,853 | ||||||||||||||||
Payments on credit facilities | — | (60,000) | — | — | (9,853) | — | (69,853) | ||||||||||||||||
Payments to net share settle RSUs | (641) | — | — | — | — | — | (641) | ||||||||||||||||
Proceeds from exercise of stock options | — | 126 | — | — | — | — | 126 | ||||||||||||||||
Debt issuance costs paid | — | — | (6,991) | — | — | — | (6,991) | ||||||||||||||||
Repurchase of common stock | (5,908) | — | — | — | — | — | (5,908) | ||||||||||||||||
Dividends paid to CURO Group Holdings Corp. | 6,750 | (6,750) | — | — | — | — | — | ||||||||||||||||
Dividends paid to stockholders | (6,750) | — | — | — | — | — | (6,750) | ||||||||||||||||
Net cash (used in) provided by financing activities (1) | (6,549) | (6,624) | 28,215 | (18,774) | — | — | (3,732) | ||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | — | — | — | (397) | (587) | 727 | (257) | ||||||||||||||||
Net increase in cash, cash equivalents and restricted cash | — | 114,642 | 9,179 | 7,090 | 28,666 | — | 159,577 | ||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | — | 59,685 | — | 17,427 | 32,909 | — | 110,021 | ||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | — | $ | 174,327 | $ | 9,179 | $ | 24,517 | $ | 61,575 | $ | — | $ | 269,598 | |||||||||
Three months ended March 31, 2020 | Nine Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||
(dollars in thousands) | CURO | Subsidiary Guarantors | Canada SPV | Subsidiary Non-Guarantors | Eliminations | CURO Consolidated | (dollars in thousands) | CURO | Subsidiary Guarantors | Canada SPV | Subsidiary Non-Guarantors | Eliminations | CURO Consolidated | |||||||||||||||||||||||||
Cash flows from operating activities: | Cash flows from operating activities: | |||||||||||||||||||||||||||||||||||||
Net cash provided by continuing operating activities | $ | 6,517 | $ | 89,412 | $ | 48,035 | $ | 12,102 | $ | (4,197 | ) | $ | 151,869 | Net cash provided by continuing operating activities | $ | 52,311 | $ | 273,564 | $ | 119,898 | $ | 17,201 | $ | 1,319 | $ | 464,293 | ||||||||||||
Net cash used in discontinued operating activities | — | — | — | 390 | — | 390 | Net cash used in discontinued operating activities | — | — | — | (504) | — | (504) | |||||||||||||||||||||||||
Cash flows from investing activities: | Cash flows from investing activities: | |||||||||||||||||||||||||||||||||||||
Purchase of property, equipment and software | — | (3,237 | ) | — | (421 | ) | — | (3,658 | ) | |||||||||||||||||||||||||||||
Purchase of property and equipment | Purchase of property and equipment | — | (7,351) | — | (1,316) | — | (8,667) | |||||||||||||||||||||||||||||||
Originations of loans, net | — | (29,894 | ) | (22,280 | ) | (8,227 | ) | — | (60,401 | ) | Originations of loans, net | — | (261,073) | (102,238) | (11,042) | — | (374,353) | |||||||||||||||||||||
Acquisition of Ad Astra, net of acquiree's cash received | — | (14,418 | ) | — | — | — | (14,418 | ) | ||||||||||||||||||||||||||||||
Investments in Katapult | Investments in Katapult | — | (8,168) | — | — | — | (8,168) | |||||||||||||||||||||||||||||||
Net cash used in continuing investing activities | — | (47,549 | ) | (22,280 | ) | (8,648 | ) | — | (78,477 | ) | Net cash used in continuing investing activities | — | (276,592) | (102,238) | (12,358) | — | (391,188) | |||||||||||||||||||||
Net cash used in discontinued investing activities | Net cash used in discontinued investing activities | — | — | — | (14,213) | — | (14,213) | |||||||||||||||||||||||||||||||
Cash flows from financing activities: | Cash flows from financing activities: | |||||||||||||||||||||||||||||||||||||
Proceeds from Non-Recourse Canada SPV facility | — | — | 23,560 | — | — | 23,560 | Proceeds from Non-Recourse Canada SPV facility | — | — | 15,992 | — | — | 15,992 | |||||||||||||||||||||||||
Payments on Non-Recourse Canada SPV facility | — | — | (42,497 | ) | — | — | (42,497 | ) | Payments on Non-Recourse Canada SPV facility | — | — | (24,835) | — | — | (24,835) | |||||||||||||||||||||||
Proceeds from credit facilities | — | 60,000 | — | 9,938 | — | 69,938 | Proceeds from credit facilities | — | 120,000 | — | 59,811 | — | 179,811 | |||||||||||||||||||||||||
Payments on credit facilities | — | (35,000 | ) | — | (9,938 | ) | — | (44,938 | ) | Payments on credit facilities | — | (115,000) | — | (59,811) | — | (174,811) | ||||||||||||||||||||||
Payments on subordinated stockholder debt | Payments on subordinated stockholder debt | — | — | — | (2,252) | — | (2,252) | |||||||||||||||||||||||||||||||
Proceeds from exercise of stock options | Proceeds from exercise of stock options | — | 87 | — | — | — | 87 | |||||||||||||||||||||||||||||||
Payments to net share settle RSUs | (609 | ) | — | — | — | — | (609 | ) | Payments to net share settle RSUs | (110) | — | — | — | — | (110) | |||||||||||||||||||||||
Proceeds from exercise of stock options | — | 126 | — | — | — | 126 | ||||||||||||||||||||||||||||||||
Debt issuance costs paid | — | (150 | ) | — | — | — | (150 | ) | Debt issuance costs paid | (29) | — | (169) | — | — | (198) | |||||||||||||||||||||||
Repurchase of common stock | (5,908 | ) | — | — | — | — | (5,908 | ) | Repurchase of common stock | (52,172) | — | — | — | — | (52,172) | |||||||||||||||||||||||
Dividends paid to CURO Group Holdings Corp. | 2,247 | (2,247 | ) | — | — | — | — | |||||||||||||||||||||||||||||||
Dividends paid to stockholders | (2,247 | ) | — | — | — | — | (2,247 | ) | ||||||||||||||||||||||||||||||
Net cash (used in) provided by financing activities (1) | (6,517 | ) | 22,729 | (18,937 | ) | — | — | (2,725 | ) | |||||||||||||||||||||||||||||
Net cash used in provided by financing activities (1) | Net cash used in provided by financing activities (1) | (52,311) | 5,087 | (9,012) | (2,252) | — | (58,488) | |||||||||||||||||||||||||||||||
Effect of exchange rate changes on cash and restricted cash | — | — | (1,928 | ) | (3,106 | ) | 4,197 | (837 | ) | |||||||||||||||||||||||||||||
Net increase in cash and restricted cash | — | 64,592 | 4,890 | 738 | — | 70,220 | ||||||||||||||||||||||||||||||||
Cash and restricted cash at beginning of period | — | 59,685 | 17,427 | 32,909 | — | 110,021 | ||||||||||||||||||||||||||||||||
Cash at end of period | $ | — | $ | 124,277 | $ | 22,317 | $ | 33,647 | $ | — | $ | 180,241 | ||||||||||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | Effect of exchange rate changes on cash, cash equivalents and restricted cash | — | — | 409 | 2,114 | (1,319) | 1,204 | |||||||||||||||||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | Net increase (decrease) in cash, cash equivalents and restricted cash | — | 2,059 | 9,057 | (10,012) | — | 1,104 | |||||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | Cash, cash equivalents and restricted cash at beginning of period | — | 52,397 | 12,840 | 34,620 | — | 99,857 | |||||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | Cash, cash equivalents and restricted cash at end of period | $ | — | $ | 54,456 | $ | 21,897 | $ | 24,608 | $ | — | $ | 100,961 | |||||||||||||||||||||||||
(1) Financing activities include continuing operations only and were not impacted by discontinued operations. | (1) Financing activities include continuing operations only and were not impacted by discontinued operations. |
Three months ended March 31, 2019 | ||||||||||||||||||
(dollars in thousands) | CURO | Subsidiary Guarantors | Canada SPV | Subsidiary Non-Guarantors | Eliminations | CURO Consolidated | ||||||||||||
Cash flows from operating activities: | ||||||||||||||||||
Net cash provided by continuing operating activities | $ | 67 | $ | 88,291 | $ | 53,969 | $ | (1,574 | ) | $ | 246 | $ | 140,999 | |||||
Net cash used in discontinued operating activities | — | — | — | (504 | ) | — | (504 | ) | ||||||||||
Cash flows from investing activities: | ||||||||||||||||||
Purchase of property, equipment and software | — | (2,430 | ) | — | (689 | ) | — | (3,119 | ) | |||||||||
Originations of loans, net | — | (38,226 | ) | (30,373 | ) | 3,652 | — | (64,947 | ) | |||||||||
Cash paid for Katapult investment | — | (1,568 | ) | — | — | — | (1,568 | ) | ||||||||||
Net cash used in continuing investing activities | — | (42,224 | ) | (30,373 | ) | 2,963 | — | (69,634 | ) | |||||||||
Net cash used in discontinued investing activities | — | — | — | (14,213 | ) | — | (14,213 | ) | ||||||||||
Cash flows from financing activities: | ||||||||||||||||||
Proceeds from Non-Recourse Canada SPV facility | — | — | 3,762 | — | — | 3,762 | ||||||||||||
Payments on Non-Recourse Canada SPV facility | — | — | (24,831 | ) | — | — | (24,831 | ) | ||||||||||
Proceeds from credit facilities | — | 15,000 | — | 15,478 | — | 30,478 | ||||||||||||
Payments on credit facilities | — | (35,000 | ) | — | (15,478 | ) | — | (50,478 | ) | |||||||||
Payments to net share settle RSUs | (37 | ) | — | — | — | — | (37 | ) | ||||||||||
Proceeds from exercise of stock options | — | 40 | — | — | — | 40 | ||||||||||||
Debt issuance costs paid | (30 | ) | — | (169 | ) | — | — | (199 | ) | |||||||||
Net cash used in provided by financing activities (1) | (67 | ) | (19,960 | ) | (21,238 | ) | — | — | (41,265 | ) | ||||||||
Effect of exchange rate changes on cash and restricted cash | — | — | 262 | 1,922 | (246 | ) | 1,938 | |||||||||||
Net increase (decrease) in cash and restricted cash | — | 26,107 | 2,620 | (11,406 | ) | — | 17,321 | |||||||||||
Cash and restricted cash at beginning of period | — | 52,397 | 12,840 | 34,620 | — | 99,857 | ||||||||||||
Cash at end of period | $ | — | $ | 78,504 | $ | 15,460 | $ | 23,214 | $ | — | $ | 117,178 | ||||||
(1) Financing activities include continuing operations only and were not impacted by discontinued operations. |
Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | |||||||||||||
Net cash provided by operating activities from continuing operations | $ | 309,746 | $ | 464,293 | ||||||||||
Net cash used in investing activities from continuing operations | (147,894) | (391,188) | ||||||||||||
Net cash used in financing activities from continuing operations | (3,732) | (58,488) | ||||||||||||
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
Net cash provided by continuing operating activities | $ | 151,869 | $ | 140,999 | ||||
Net cash used in continuing investing activities | (78,477 | ) | (69,634 | ) | ||||
Net cash used in continuing financing activities | (2,725 | ) | (41,265 | ) |
(in thousands) | March 31, 2020 | Percent of Total | December 31, 2019 | Percent of Total | |||||||
U.S. | $ | 105,922 | 79.7 | % | $ | 91,131 | 75.6 | % | |||
Canada | 26,903 | 20.3 | % | 29,478 | 24.4 | % | |||||
Total Goodwill | $ | 132,825 | $ | 120,609 |
(in thousands) | September 30, 2020 | Percent of Total | December 31, 2019 | Percent of Total | |||||||||||||
U.S. | $ | 105,922 | 78.7 | % | $ | 91,131 | 75.6 | % | |||||||||
Canada | 28,667 | 21.3 | % | 29,478 | 24.4 | % | |||||||||||
Total Goodwill | $ | 134,589 | $ | 120,609 |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Dollar Value of Shares that may yet be Purchased under the Plans or Programs(1) (In millions) | ||||||
January 2020 | 408,059 | $ | 10.53 | 397,500 | $ | 0.6 | ||||
February 2020 | 85,695 | 10.11 | 81,544 | 24.8 | ||||||
March 2020 | 122,976 | 6.87 | 61,718 | — | ||||||
Total | 616,730 | $ | 9.74 | 540,762 | $ | — | ||||
(1) Includes shares withheld from employees as tax payments for shares issued under our stock-based compensation plans. See Note 6, "Share-Based Compensation" of the Notes to unaudited Consolidated Financial Statements for additional details on our stock-based compensation plans. | ||||||||||
(2) As of the end of the period. |
Exhibit no. | Exhibit Description | Filed/Incorporated by Reference from Form | Incorporated by Reference from Exhibit Number | Filing Date | |||||||||||||
3.1 | 10-Q | 10.1 | 8/5/2020 | ||||||||||||||
3.2 | 8-K | 3.2 | 12/11/17 | ||||||||||||||
4.1 | S-1 | 4.1 | 11/28/17 | ||||||||||||||
4.2 | S-1 | 4.2 | 11/28/17 | ||||||||||||||
4.3 | S-1 | 4.3 | 10/24/17 | ||||||||||||||
4.4 | 10-K | 4.4 | 3/9/20 | ||||||||||||||
31.1 | Filed herewith | ||||||||||||||||
31.2 | Filed herewith | ||||||||||||||||
32.1 | Filed herewith | ||||||||||||||||
101 | The following unaudited financial information from the Company's Quarterly Report on Form 10-Q for the period ended September 30, 2020, filed with the SEC on November 4, 2020, formatted in Extensible Business Reporting Language (“XBRL”) includes: (i) Condensed Consolidated Balance Sheets at September 30, 2020 and December 31, 2019, (ii) Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2020 and 2019, (iii) Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2020 and 2019, (iv) Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2020 and 2019, and (v) Notes to Condensed Consolidated Financial Statements* | Filed herewith | |||||||||||||||
By: | /s/ Roger Dean | ||||||||||
Roger Dean | |||||||||||
Executive Vice President and Chief Financial Officer |