Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 28, 2019 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | Enova International, Inc. | |
Entity Central Index Key | 0001529864 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Title of 12(b) Security | Common Stock, $.00001 par value per share | |
Trading Symbol | ENVA | |
Name of Exchange of which registered | NYSE | |
Entity Common Stock, Shares Outstanding | 33,770,368 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity File Number | 1-35503 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 45-3190813 | |
Entity Address, Address Line One | 175 West Jackson Blvd. | |
Entity Address, City or Town | Chicago | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60604 | |
City Area Code | 312 | |
Local Phone Number | 568-4200 | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | |
Assets | ||||
Cash and cash equivalents | [1] | $ 69,945 | $ 52,917 | $ 164,122 |
Restricted cash | [1] | 20,719 | 24,342 | 20,897 |
Loans and finance receivables, net | [1] | 1,001,154 | 859,946 | 838,783 |
Income taxes receivable | 12,727 | 28,914 | 45,639 | |
Other receivables and prepaid expenses | [1] | 39,549 | 29,983 | 25,699 |
Property and equipment, net | 54,951 | 49,553 | 48,514 | |
Operating lease right-of-use assets | 20,260 | |||
Goodwill | 267,013 | 267,013 | 267,013 | |
Intangible assets, net | 2,452 | 3,255 | 3,523 | |
Other assets | [1] | 11,907 | 12,262 | 12,078 |
Total assets | 1,500,677 | 1,328,185 | 1,426,268 | |
Liabilities and Stockholders' Equity | ||||
Accounts payable and accrued expenses | [1] | 122,212 | 89,317 | 76,188 |
Operating lease liabilities | 36,770 | |||
Deferred tax liabilities, net | 33,980 | 33,171 | 46,321 | |
Long-term debt | [1] | 873,744 | 857,929 | 951,091 |
Total liabilities | 1,066,706 | 980,417 | 1,073,600 | |
Commitments and contingencies (Note 9) | ||||
Stockholders' equity: | ||||
Common stock, $0.00001 par value, 250,000,000 shares authorized, 35,751,763, 34,764,648 and 34,856,553 shares issued and 33,988,030, 34,274,785 and 33,584,606 outstanding as of September 30, 2019 and 2018 and December 31, 2018, respectively | 0 | 0 | 0 | |
Preferred stock, $0.00001 par value, 25,000,000 shares authorized, no shares issued and outstanding | ||||
Additional paid in capital | 61,477 | 48,175 | 44,657 | |
Retained earnings | 423,234 | 336,415 | 327,744 | |
Accumulated other comprehensive loss | (17,158) | (13,805) | (12,468) | |
Treasury stock, at cost (1,763,733, 489,863 and 1,271,947 shares as of September 30, 2019 and 2018 and December 31, 2018, respectively) | (33,582) | (23,017) | (7,265) | |
Total stockholders' equity | 433,971 | 347,768 | 352,668 | |
Total liabilities and stockholders' equity | $ 1,500,677 | $ 1,328,185 | $ 1,426,268 | |
[1] | Includes amounts in wholly owned, bankruptcy-remote special purpose subsidiaries (“VIEs”) presented separately in the table below. |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Statement Of Financial Position [Abstract] | |||
Common stock, par value per share | $ 0.00001 | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 250,000,000 | 250,000,000 | 250,000,000 |
Common stock, shares issued | 35,751,763 | 34,856,553 | 34,764,648 |
Common stock, shares outstanding | 33,988,030 | 33,584,606 | 34,274,785 |
Preferred stock, par value per share | $ 0.00001 | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Treasury stock, shares | 1,763,733 | 1,271,947 | 489,863 |
CONSOLIDATED BALANCE SHEETS (Co
CONSOLIDATED BALANCE SHEETS (Consolidated VIEs) (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | |
Assets of consolidated VIEs, included in total assets above | ||||
Cash and cash equivalents | [1] | $ 69,945 | $ 52,917 | $ 164,122 |
Restricted cash | [1] | 20,719 | 24,342 | 20,897 |
Loans and finance receivables, net | [1] | 1,001,154 | 859,946 | 838,783 |
Other receivables and prepaid expenses | [1] | 39,549 | 29,983 | 25,699 |
Other assets | [1] | 11,907 | 12,262 | 12,078 |
Liabilities of consolidated VIEs, included in total liabilities above | ||||
Accounts payable and accrued expenses | [1] | 122,212 | 89,317 | 76,188 |
Long-term debt | [1] | 873,744 | 857,929 | 951,091 |
Variable Interest Entity, Primary Beneficiary | ||||
Assets of consolidated VIEs, included in total assets above | ||||
Cash and cash equivalents | 420 | 210 | 120 | |
Restricted cash | 18,618 | 22,168 | 18,678 | |
Loans and finance receivables, net | 340,034 | 318,961 | 291,673 | |
Other receivables and prepaid expenses | 9,236 | 2,712 | 2,381 | |
Other assets | 2,346 | 2,544 | 2,228 | |
Total assets | 370,654 | 346,595 | 315,080 | |
Liabilities of consolidated VIEs, included in total liabilities above | ||||
Accounts payable and accrued expenses | 3,300 | 3,087 | 2,514 | |
Long-term debt | 234,666 | 223,368 | 224,559 | |
Total liabilities | $ 237,966 | $ 226,455 | $ 227,073 | |
[1] | Includes amounts in wholly owned, bankruptcy-remote special purpose subsidiaries (“VIEs”) presented separately in the table below. |
CONSOLIDATED BALANCE SHEETS (_3
CONSOLIDATED BALANCE SHEETS (Consolidated VIEs) (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Allowance for losses | $ 172,384 | $ 163,308 | $ 151,585 |
Variable Interest Entity, Primary Beneficiary | |||
Allowance for losses | $ 34,509 | $ 27,255 | $ 28,096 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenue | $ 329,513 | $ 293,879 | $ 908,396 | $ 801,478 |
Cost of Revenue | 171,266 | 163,763 | 448,608 | 393,810 |
Gross Profit | 158,247 | 130,116 | 459,788 | 407,668 |
Expenses | ||||
Marketing | 36,993 | 36,011 | 92,559 | 93,133 |
Operations and technology | 34,310 | 28,260 | 96,321 | 80,993 |
General and administrative | 28,787 | 24,360 | 87,236 | 79,576 |
Depreciation and amortization | 3,716 | 3,688 | 11,842 | 11,363 |
Total Expenses | 103,806 | 92,319 | 287,958 | 265,065 |
Income from Operations | 54,441 | 37,797 | 171,830 | 142,603 |
Interest expense, net | (18,232) | (20,244) | (55,847) | (59,272) |
Foreign currency transaction (loss) gain | (12) | 27 | (193) | (2,265) |
Loss on early extinguishment of debt | (12,469) | (2,321) | (17,179) | |
Income before Income Taxes | 36,197 | 5,111 | 113,469 | 63,887 |
Provision for (benefit from) income taxes | 9,112 | (10,193) | 26,304 | 2,460 |
Net Income | $ 27,085 | $ 15,304 | $ 87,165 | $ 61,427 |
Earnings per common share: | ||||
Basic | $ 0.80 | $ 0.45 | $ 2.58 | $ 1.81 |
Diluted | $ 0.78 | $ 0.43 | $ 2.53 | $ 1.75 |
Weighted average common shares outstanding: | ||||
Basic | 33,997 | 34,168 | 33,770 | 33,938 |
Diluted | 34,577 | 35,665 | 34,492 | 35,200 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Statement Of Income And Comprehensive Income [Abstract] | |||||
Net Income | $ 27,085 | $ 15,304 | $ 87,165 | $ 61,427 | |
Other comprehensive loss, net of tax: | |||||
Foreign currency translation loss | [1] | (2,384) | (1,563) | (3,353) | (3,760) |
Reclassification of certain deferred tax effects | (1,622) | ||||
Total other comprehensive loss, net of tax | (2,384) | (1,563) | (3,353) | (5,382) | |
Comprehensive Income | $ 24,701 | $ 13,741 | $ 83,812 | $ 56,045 | |
[1] | Net of tax benefit of $966 and $456 for the three months ended September 30, 2019 and 2018, respectively and $933 and $766 for the nine months ended September 30, 2019 and 2018, respectively. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Tax benefit of foreign currency translation loss | $ 966 | $ 456 | $ 933 | $ 766 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | ||
Balance at Dec. 31, 2017 | $ 281,687 | $ 29,781 | $ 264,695 | $ (7,086) | $ (5,703) | |||
Balance, in shares at Dec. 31, 2017 | 33,933,000 | (428,000) | ||||||
Stock-based compensation expense | 8,149 | 8,149 | ||||||
Shares issued for vested RSUs, in shares | 513,000 | |||||||
Shares issued for stock option exercises | 6,727 | 6,727 | ||||||
Shares issued for stock option exercises, in shares | 319,000 | |||||||
Net income | 61,427 | 61,427 | ||||||
Foreign currency translation loss, net of tax | (3,760) | [1] | (3,760) | |||||
Purchases of treasury shares, at cost | (1,562) | $ (1,562) | ||||||
Purchases of treasury shares, at cost, in shares | (62,000) | |||||||
Reclassification of certain deferred tax effects | 1,622 | 1,622 | (1,622) | [2] | ||||
Balance at Sep. 30, 2018 | $ 352,668 | 44,657 | 327,744 | (12,468) | $ (7,265) | |||
Balance, in shares at Sep. 30, 2018 | 34,764,648 | 34,765,000 | (490,000) | |||||
Balance at Jun. 30, 2018 | $ 333,645 | 39,335 | 312,440 | (10,905) | $ (7,225) | |||
Balance, in shares at Jun. 30, 2018 | 34,634,000 | (489,000) | ||||||
Stock-based compensation expense | 2,882 | 2,882 | ||||||
Shares issued for vested RSUs, in shares | 9,000 | |||||||
Shares issued for stock option exercises | 2,440 | 2,440 | ||||||
Shares issued for stock option exercises, in shares | 122,000 | |||||||
Net income | 15,304 | 15,304 | ||||||
Foreign currency translation loss, net of tax | (1,563) | [1] | (1,563) | |||||
Purchases of treasury shares, at cost | (40) | $ (40) | ||||||
Purchases of treasury shares, at cost, in shares | (1,000) | |||||||
Balance at Sep. 30, 2018 | $ 352,668 | 44,657 | 327,744 | (12,468) | $ (7,265) | |||
Balance, in shares at Sep. 30, 2018 | 34,764,648 | 34,765,000 | (490,000) | |||||
Balance at Dec. 31, 2018 | $ 347,768 | 48,175 | 336,415 | (13,805) | $ (23,017) | |||
Balance, in shares at Dec. 31, 2018 | 34,856,553 | 34,857,000 | (1,272,000) | |||||
Stock-based compensation expense | $ 9,784 | 9,784 | ||||||
Shares issued for vested RSUs, in shares | 534,000 | |||||||
Shares issued for stock option exercises | 3,518 | 3,518 | ||||||
Shares issued for stock option exercises, in shares | 361,000 | |||||||
Net income | 87,165 | 87,165 | ||||||
Foreign currency translation loss, net of tax | (3,353) | [1] | (3,353) | |||||
Purchases of treasury shares, at cost | (10,565) | $ (10,565) | ||||||
Purchases of treasury shares, at cost, in shares | (492,000) | |||||||
Cumulative effect of accounting change (Note 1) | (346) | (346) | ||||||
Balance at Sep. 30, 2019 | $ 433,971 | 61,477 | 423,234 | (17,158) | $ (33,582) | |||
Balance, in shares at Sep. 30, 2019 | 35,751,763 | 35,752,000 | (1,764,000) | |||||
Balance at Jun. 30, 2019 | $ 406,453 | 56,910 | 396,149 | (14,774) | $ (31,832) | |||
Balance, in shares at Jun. 30, 2019 | 35,671,000 | (1,682,000) | ||||||
Stock-based compensation expense | 3,387 | 3,387 | ||||||
Shares issued for vested RSUs, in shares | 10,000 | |||||||
Shares issued for stock option exercises | 1,180 | 1,180 | ||||||
Shares issued for stock option exercises, in shares | 71,000 | |||||||
Net income | 27,085 | 27,085 | ||||||
Foreign currency translation loss, net of tax | (2,384) | [1] | (2,384) | |||||
Purchases of treasury shares, at cost | (1,750) | $ (1,750) | ||||||
Purchases of treasury shares, at cost, in shares | (82,000) | |||||||
Balance at Sep. 30, 2019 | $ 433,971 | $ 61,477 | $ 423,234 | $ (17,158) | $ (33,582) | |||
Balance, in shares at Sep. 30, 2019 | 35,751,763 | 35,752,000 | (1,764,000) | |||||
[1] | Net of tax benefit of $966 and $456 for the three months ended September 30, 2019 and 2018, respectively and $933 and $766 for the nine months ended September 30, 2019 and 2018, respectively. | |||||||
[2] | Amount reclassified from accumulated other comprehensive loss represents stranded tax effects resulting from the newly enacted federal corporate income tax rate under the Tax Cuts and Jobs Act. The amount of the reclassification is the difference between the historical corporate income tax rate and the newly enacted 21 percent corporate income tax rate. These amounts were recorded to retained earnings on the consolidated balance sheets. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash Flows from Operating Activities | ||
Net Income | $ 87,165 | $ 61,427 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 11,842 | 11,363 |
Amortization of deferred loan costs and debt discount | 4,302 | 4,526 |
Cost of revenue | 448,608 | 393,810 |
Stock-based compensation expense | 9,784 | 8,149 |
Loss on early extinguishment of debt | 2,321 | 17,179 |
Operating leases, net | (1,135) | |
Lease termination and cease-use costs | 370 | |
Deferred income taxes, net | 1,817 | 34,894 |
Other | 55 | |
Changes in operating assets and liabilities: | ||
Finance and service charges on loans and finance receivables | (20,616) | (24,465) |
Other receivables and prepaid expenses | (9,000) | (2,285) |
Accounts payable and accrued expenses | 2,996 | 5,054 |
Current income taxes | 67,451 | (41,547) |
Net cash provided by operating activities | 605,905 | 468,160 |
Cash Flows from Investing Activities | ||
Loans and finance receivables originated or acquired | (1,412,055) | (1,277,958) |
Loans and finance receivables repaid | 841,523 | 772,020 |
Purchases of property and equipment | (16,459) | (11,303) |
Other investing activities | 4 | 93 |
Net cash used in investing activities | (586,987) | (517,148) |
Cash Flows from Financing Activities | ||
Borrowings under revolving line of credit | 235,049 | 109,000 |
Repayments under revolving line of credit | (232,049) | (109,000) |
Borrowings under securitization facilities | 122,800 | 162,413 |
Repayments under securitization facilities | (114,043) | (147,601) |
Issuance of senior notes | 375,000 | |
Repayments of senior notes | (228,514) | |
Debt issuance costs paid | (702) | (9,156) |
Debt prepayment penalty paid | (1,392) | (13,073) |
Payment of promissory note | (3,000) | |
Proceeds from exercise of stock options | 3,518 | 6,727 |
Treasury shares purchased | (10,565) | (1,562) |
Net cash provided by financing activities | 2,616 | 141,234 |
Effect of exchange rates on cash, cash equivalents and restricted cash | (8,129) | (5,371) |
Net increase in cash, cash equivalents and restricted cash | 13,405 | 86,875 |
Cash, cash equivalents and restricted cash at beginning of year | 77,259 | 98,144 |
Cash, cash equivalents and restricted cash at end of period | 90,664 | 185,019 |
Supplemental Disclosures | ||
Loans and finance receivables renewed | $ 201,207 | $ 282,486 |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 1. Significant Accounting Policies Nature of the Company The Company operates an internet-based lending platform to serve customers in need of cash to fulfill their financial responsibilities. Through a network of direct and indirect marketing channels, the Company offers funds to its customers through a variety of unsecured loan and finance receivable products. The business is operated primarily through the internet to provide convenient, fully-automated financial solutions to its customers. The Company originates, arranges, guarantees or purchases consumer loans and provides financing to small businesses through a line of credit account, installment loan or receivables purchase agreement product (“RPAs”). Consumer loans include short-term loans, line of credit accounts and installment loans. RPAs represent a right to receive future receivables from a small business. “Loans and finance receivables” include consumer loans, small business lines of credit, small business installment loans and RPAs. Basis of Presentation The consolidated financial statements of the Company reflect the historical results of operations and cash flows of the Company during each respective period. The consolidated financial statements include goodwill and intangible assets arising from businesses previously acquired. The financial information included herein may not be indicative of the consolidated financial position, operating results, changes in stockholders’ equity and cash flows of the Company in the future. Intercompany transactions are eliminated. The Company consolidates any variable interest entity (“VIE”) where it has been determined it is the primary beneficiary. The primary beneficiary is the entity which has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance as well as the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE. The consolidated financial statements presented as of September 30, 2019 and 2018 and for the three and nine-month periods ended September 30, 2019 and 2018 are unaudited but, in management’s opinion, include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for such interim periods. Operating results for the three and nine-month periods are not necessarily indicative of the results that may be expected for the full fiscal year. These consolidated financial statements and related notes should be read in conjunction with the Company’s audited consolidated financial statements as of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016 and related notes, which are included on Form 10-K filed with the SEC on February 27, 2019. Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the consolidated balance sheets (in thousands): September 30, 2019 2018 Cash and cash equivalents $ 69,945 $ 164,122 Restricted cash 20,719 20,897 Total cash, cash equivalents and restricted cash $ 90,664 $ 185,019 Reclassification of Accumulated Other Comprehensive Income to Net Income In May 2009 and October 2009, the Company began providing services in Australia and Canada under the brand name DollarsDirect. Due to the small size of the Australian and Canadian markets and our limited operations there, we decided to exit those markets in 2016 and reallocate our resources to our other existing businesses. As a result, we stopped originating loans in those countries and have wound down our loan portfolios. During the quarter ended March 31, 2018, the Company continued the liquidation process of the legal entities related to Australia and Canada and recorded a $2.3 million loss to “Foreign currency transaction loss” in the consolidated statements of income to recognize the cumulative translation adjustment balance that had been previously recorded to “Accumulated other comprehensive loss” on the consolidated balance sheets. Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016‑02, Leases (Topic 842) Leases (Topic 842): Targeted Improvements Leases (Topic 842): Codification Improvements Accounting Changes and Error Corrections The Company adopted ASU 2016‑02 and ASU 2019‑01 on January 1, 2019 and elected the optional transition method permitted by ASU 2018‑11. The Company elected the package of transition practical expedients, which allows it to not reassess whether any expired or existing contracts are or contain leases and to not reassess the lease classification for existing or expired leases. The Company also elected the practical expedient to not separate lease and associated non-lease components and the short-term lease exception. The following table sets forth the impact of adoption as of January 1, 2019 (in thousands): Increase (decrease) Assets Other receivables and prepaid expenses $ (35 ) Operating lease right-of-use assets 22,332 Total assets $ 22,297 Liabilities and Stockholders' Equity Accounts payable and accrued expenses $ (16,860 ) Operating lease liabilities 39,605 Deferred tax liabilities, net (102 ) Total liabilities 22,643 Stockholders' equity: Retained earnings (346 ) Total stockholders' equity (346 ) Total liabilities and stockholders' equity $ 22,297 Accounting Standards to be Adopted in Future Periods In August 2018, the FASB issued ASU 2018‑15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract In January 2017, the FASB issued ASU 2017‑04, Intangibles – Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment In June 2016, the FASB issued ASU 2016‑13, Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which provides subsequent amendments to the initial guidance in ASU 2016 ‑13. In May 2019, the FASB issued ASU 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Reli ef, which provides entities that have certain instruments within the scope of ASC 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost , with an option to irrevocably elect the fair value option in ASC 825-10, Financial Instruments—Overall , applied on an instrument-by-instrument basis for eligible instruments, upon adoption of ASU 2016-13. ASU 2016 ‑ 13 is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. The Company is evaluating its alternatives with respect to the available accounting methods under ASU 2016 ‑ 13, including the fair value option. If the fair value option is not utilized, adoption of ASU 2016-13 will increase the allowance for credit losses with a resulting negative adjustment to retained earnings on the date of adoption. |
Loans and Finance Receivables,
Loans and Finance Receivables, Credit Quality Information and Allowances and Liabilities for Estimated Losses on Loans and Finance Receivables | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Loans and Finance Receivables, Credit Quality Information and Allowances and Liabilities for Estimated Losses on Loans and Finance Receivables | 2. Loans and Finance Receivables, Credit Quality Information and Allowances and Liabilities for Estimated Losses on Loans and Finance Receivables Revenue generated from the Company’s loans and finance receivables for the three and nine months ended September 30, 2019 and 2018 was as follows (dollars in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Short-term loans $ 34,844 $ 57,851 $ 117,891 $ 161,538 Line of credit accounts 146,362 98,666 361,515 256,633 Installment loans and RPAs 148,082 137,107 428,208 382,264 Total loans and finance receivables revenue 329,288 293,624 907,614 800,435 Other 225 255 782 1,043 Total revenue $ 329,513 $ 293,879 $ 908,396 $ 801,478 Current and Delinquent Loans and Finance Receivables The Company classifies its loans and finance receivables as either current or delinquent. Short-term loans are considered delinquent when payment of an amount due is not made as of the due date. If a line of credit account or installment loan customer misses one payment, that payment is considered delinquent and the balance of the loan is considered current. If a line of credit account or installment loan customer does not make two consecutive payments, the entire account or loan is classified as delinquent and placed on a non-accrual status. The Company allows for normal payment processing time before considering a loan delinquent but does not provide for any additional grace period. The Company does not accrue interest on delinquent loans and does not resume accrual of interest on a delinquent loan unless it is returned to current status. In addition, delinquent loans generally may not be renewed, and if, during its attempt to collect on a delinquent loan, the Company allows additional time for payment through a payment plan or a promise to pay, it is still considered delinquent. Generally, all payments received are first applied against accrued but unpaid interest and fees and then against the principal balance of the loan. Allowance and Liability for Estimated Losses on Loans and Finance Receivables The Company monitors the performance of its loan and finance receivable portfolios and maintains either an allowance or liability for estimated losses on loans and finance receivables (including revenue, fees and/or interest) at a level estimated to be adequate to absorb losses inherent in the portfolio. The allowance for losses on the Company’s owned loans and finance receivables reduces the outstanding loans and finance receivables balance in the consolidated balance sheets. The Company provides services related to third-party lenders’ short-term and installment consumer loan products by acting as a credit services organization or credit access business, which it refers to as its CSO programs, on behalf of consumers in accordance with applicable state laws. The liability for estimated losses related to loans guaranteed under its CSO programs is initially recorded at fair value and is included in “Accounts payable and accrued expenses” in the consolidated balance sheets. In determining the allowance or liability for estimated losses on loans and finance receivables, the Company applies a documented systematic methodology. In calculating the allowance or liability for receivable losses, outstanding loans and finance receivables are divided into discrete groups of short-term loans, line of credit accounts, installment loans and RPAs and are analyzed as current or delinquent. Increases in either the allowance or the liability, net of charge-offs and recoveries, are recorded as a “Cost of revenue” in the consolidated statements of income. The allowance or liability for short-term loans classified as current is based on historical loss rates adjusted for recent default trends for current loans. For delinquent short-term loans, the allowance or liability is based on a six-month rolling aver age of loss rates by stage of collection. For line of credit account, installment loan and RPA portfolios, the Company generally uses either a migration analysis or roll-rate based methodology to estimate losses inherent in the portfolio. The allowance or liability calculation under the migration analysis and roll-rate methodology is based on historical charge-off experience and the loss emergence period, which represents the average amount of time between the first occurrence of a loss event and the charge -off of a loan or RPA. The factors the Company considers to assess the adequacy of the allowance or liability include past due performance, historical behavior of monthly vintages, underwriting changes and recent trends in delinquency in the migration anal ysis. The roll-rate methodology is based on delinquency status, payment history and recency factors to estimate future charge-offs. The Company fully reserves for loans and finance receivables once the receivable or a portion of the receivable has been classified as delinquent for 60 consecutive days and generally charges off loans and finance receivables between 60 and 65 days delinquent. If a loan or finance receivable is deemed uncollectible before it is fully reserved, it is charged off at that point. Loans and finance receivables classified as delinquent generally have an age of one to 64 days from the date any portion of the receivable became delinquent, as defined above. Recoveries on loans and finance receivables previously charged to the allowance are credited to the allowance when collected. The components of Company-owned loans and finance receivables at September 30, 2019 and 2018 and December 31, 2018 were as follows (dollars in thousands): As of September 30, 2019 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Current receivables $ 22,628 $ 312,860 $ 738,466 $ 1,073,954 Delinquent receivables: Delinquent payment amounts (1) — 18,670 3,142 21,812 Receivables on non-accrual status 18,437 5,317 54,018 77,772 Total delinquent receivables 18,437 23,987 57,160 99,584 Total loans and finance receivables, gross 41,065 336,847 795,626 1,173,538 Less: Allowance for losses (11,488 ) (75,413 ) (85,483 ) (172,384 ) Loans and finance receivables, net $ 29,577 $ 261,434 $ 710,143 $ 1,001,154 As of September 30, 2018 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Current receivables $ 46,679 $ 203,960 $ 638,910 $ 889,549 Delinquent receivables: Delinquent payment amounts (1) — 10,270 2,531 12,801 Receivables on non-accrual status 31,829 2,394 53,795 88,018 Total delinquent receivables 31,829 12,664 56,326 100,819 Total loans and finance receivables, gross 78,508 216,624 695,236 990,368 Less: Allowance for losses (23,004 ) (41,478 ) (87,103 ) (151,585 ) Loans and finance receivables, net $ 55,504 $ 175,146 $ 608,133 $ 838,783 As of December 31, 2018 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Current receivables $ 37,558 $ 213,896 $ 672,538 $ 923,992 Delinquent receivables: Delinquent payment amounts (1) — 10,783 2,696 13,479 Receivables on non-accrual status 30,167 2,884 52,732 85,783 Total delinquent receivables 30,167 13,667 55,428 99,262 Total loans and finance receivables, gross 67,725 227,563 727,966 1,023,254 Less: Allowance for losses (21,420 ) (51,008 ) (90,880 ) (163,308 ) Loans and finance receivables, net $ 46,305 $ 176,555 $ 637,086 $ 859,946 (1) Represents the delinquent portion of installment loans and line of credit account balances for customers that have only missed one payment and RPA customers who have not delivered agreed upon receivables. See “Current and Delinquent Loans and Finance Receivables” above for additional information. Changes in the allowance for losses for the Company-owned loans and finance receivables and the liability for losses on the Company’s guarantees of third-party lender-owned loans during the three and nine months ended September 30, 2019 and 2018 were as follows (dollars in thousands): Three Months Ended September 30, 2019 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Allowance for losses for Company-owned loans and finance receivables: Balance at beginning of period $ 13,729 $ 51,419 $ 90,032 $ 155,180 Cost of revenue 12,195 83,755 75,339 171,289 Charge-offs (19,026 ) (66,186 ) (102,497 ) (187,709 ) Recoveries 4,716 6,425 23,297 34,438 Effect of foreign currency translation (126 ) — (688 ) (814 ) Balance at end of period $ 11,488 $ 75,413 $ 85,483 $ 172,384 Liability for third-party lender-owned loans: Balance at beginning of period $ 1,301 $ — $ 425 $ 1,726 (Decrease) increase in liability (99 ) — 76 (23 ) Balance at end of period $ 1,202 $ — $ 501 $ 1,703 Three Months Ended September 30, 2018 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Allowance for losses for Company-owned loans and finance receivables: Balance at beginning of period $ 18,861 $ 31,050 $ 71,873 $ 121,784 Cost of revenue 26,080 46,749 90,782 163,611 Charge-offs (27,906 ) (40,010 ) (90,090 ) (158,006 ) Recoveries 6,071 3,689 14,829 24,589 Effect of foreign currency translation (102 ) — (291 ) (393 ) Balance at end of period $ 23,004 $ 41,478 $ 87,103 $ 151,585 Liability for third-party lender-owned loans: Balance at beginning of period $ 1,883 $ — $ 209 $ 2,092 Increase in liability 94 — 58 152 Balance at end of period $ 1,977 $ — $ 267 $ 2,244 Nine Months Ended September 30, 2019 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Allowance for losses for Company-owned loans and finance receivables: Balance at beginning of period $ 21,420 $ 51,008 $ 90,880 $ 163,308 Cost of revenue 42,147 169,820 237,104 449,071 Charge-offs (67,587 ) (159,429 ) (306,674 ) (533,690 ) Recoveries 15,585 14,014 64,886 94,485 Effect of foreign currency translation (77 ) — (713 ) (790 ) Balance at end of period $ 11,488 $ 75,413 $ 85,483 $ 172,384 Liability for third-party lender-owned loans: Balance at beginning of period $ 1,964 $ — $ 202 $ 2,166 (Decrease) increase in liability (762 ) — 299 (463 ) Balance at end of period $ 1,202 $ — $ 501 $ 1,703 Nine Months Ended September 30, 2018 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Allowance for losses for Company-owned loans and finance receivables: Balance at beginning of period $ 19,917 $ 31,148 $ 71,979 $ 123,044 Cost of revenue 67,011 103,343 223,470 393,824 Charge-offs (82,006 ) (103,371 ) (251,040 ) (436,417 ) Recoveries 18,332 10,358 43,820 72,510 Effect of foreign currency translation (250 ) — (1,126 ) (1,376 ) Balance at end of period $ 23,004 $ 41,478 $ 87,103 $ 151,585 Liability for third-party lender-owned loans: Balance at beginning of period $ 2,105 $ — $ 153 $ 2,258 (Decrease) increase in liability (128 ) — 114 (14 ) Balance at end of period $ 1,977 $ — $ 267 $ 2,244 Guarantees of Consumer Loans In connection with its CSO programs, the Company guarantees consumer loan payment obligations to unrelated third-party lenders for short-term and installment loans and is required to purchase any defaulted loans it has guaranteed. The guarantee represents an obligation to purchase specific loans that go into default. As of September 30, 2019 and 2018 and December 31, 2018, the amount of consumer loans guaranteed by the Company was $23.6 million, $30.1 million and $29.7 million, respectively, representing amounts due under consumer loans originated by third-party lenders under the CSO programs. The estimated fair value of the liability for estimated losses on consumer loans guaranteed by the Company of $1.7 million, $2.2 million and $2.2 million, as of September 30, 2019 and 2018 and December 31, 2018, respectively, is included in “Accounts payable and accrued expenses” in the consolidated balance sheets. Bank Program Loans In order to leverage its online lending platform, the Company launched a program with a bank in 2016 to provide technology, marketing services, and loan servicing for near-prime unsecured consumer installment loans. Under the program, the Company received marketing and servicing fees while the bank received an origination fee. The bank had the ability to sell the loans it originated to the Company. In May 2018, as a result of a change in the law in Ohio, our bank partner suspended lending and the Company suspended purchasing loans through this program. The Company plans to continue and grow this program by adding new partners and expanding into additional states. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | 3. Leases The Company has operating leases primarily for its corporate headquarters, other offices located in the U.S. and the U.K. and certain equipment. The Company’s leases have remaining lease terms of less than one year to nine years. Certain leases include options to extend the leases for up to five years, while others include options to terminate the leases within one year. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company determines if an arrangement is an operating lease at inception. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. All other operating leases are recorded on the consolidated balance sheet with right-of-use assets representing the right to use the underlying asset for the lease term and lease liabilities representing the obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities , plus any lease payments made at or before the commencement date, less any lease incentives received. Lease expenses for the three and nine months ended September 30, 2019 were as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2019 Operating lease cost $ 1,553 $ 4,671 Operating lease impairment charge — 370 Variable lease cost 57 218 Short-term lease cost 42 133 Total lease cost $ 1,652 $ 5,392 Future minimum lease payments as of September 30, 2019 are as follows (in thousands): Year Amount 2019 $ 1,866 2020 7,383 2021 7,326 2022 7,018 2023 7,115 Thereafter 23,464 Total lease payments $ 54,172 Less: interest 17,402 Present value of lease liabilities $ 36,770 The weighted average remaining lease term and discount rate as of September 30, 2019 were as follows: September 30, 2019 Weighted average remaining lease term (years) Operating leases 7.4 Weighted average discount rate Operating leases 10.80 % Supplemental cash flow disclosures related to leases for the nine months ended September 30, 2019 were as follows (in thousands): Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 5,800 Right-of-use assets obtained in exchange for lease obligations Operating leases 25 |
Long-term Debt
Long-term Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | 4. Long-term debt The Company’s long-term debt instruments and balances outstanding as of September 30, 2019 and 2018 and December 31, 2018 were as follows (dollars in thousands): September 30, December 31, 2019 2018 2018 Securitization notes $ 236,052 $ 226,218 $ 227,288 Revolving line of credit 25,000 — 22,000 9.75% senior notes due 2021 — 115,821 — 8.50% senior notes due 2024 250,000 250,000 250,000 8.50% senior notes due 2025 375,000 375,000 375,000 Subtotal 886,052 967,039 874,288 Less: Long-term debt issuance costs (12,308 ) (15,948 ) (16,359 ) Total long-term debt $ 873,744 $ 951,091 $ 857,929 Weighted average interest rates on long-term debt were 8.74% and 9.80% during the nine months ended September 30, 2019 and 2018, respectively. As of September 30, 2019 and 2018 and December 31, 2018, the Company was in compliance with all covenants and other requirements set forth in the prevailing long-term debt agreements. 8.50% Senior Unsecured Notes Due 2025 On September 19, 2018, the Company issued and sold $375.0 million in aggregate principal amount of 8.50% Senior Notes due 2025 (the “2025 Senior Notes”). The 2025 Senior Notes were sold to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) and outside the United States pursuant to Regulation S under the Securities Act. The 2025 Senior Notes bear interest at a rate of 8.50% annually on the principal amount payable semi-annually in arrears on March 15 and September 15 of each year, beginning on March 15, 2019. The 2025 Senior Notes were sold at a price of 100%. The 2025 Senior Notes will mature on September 15, 2025. The 2025 Senior Notes are unsecured debt obligations of the Company, and are unconditionally guaranteed by certain of the Company’s domestic subsidiaries. The 2025 Senior Notes are redeemable at the Company’s option, in whole or in part, (i) at any time prior to September 15, 2021 at 100% of the aggregate principal amount of 2025 Senior Notes redeemed plus the applicable “make whole” premium specified in the indenture that governs the Company’s 2025 Notes (the “2025 Senior Notes Indenture”), plus accrued and unpaid interest, if any, to the redemption date and (ii) at any time on or after September 15, 2021 at the premium, if any, specified in the 2025 Senior Notes Indenture that will decrease over time, plus accrued and unpaid interest, if any, to the redemption date. In addition, prior to September 15, 2021, at its option, the Company may redeem up to 40% of the aggregate principal amount of the 2025 Senior Notes at a redemption price of 108.5% of the aggregate principal amount of 2025 Senior Notes redeemed, plus accrued and unpaid interest, if any, to the redemption date, with the proceeds of certain equity offerings as described in the 2025 Senior Notes Indenture. The 2025 Senior Notes and the related guarantees have not been and will not be registered under the Securities Act, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities or blue sky laws and foreign securities laws. The Company used a portion of the net proceeds of the 2025 Senior Notes offering to retire $295.0 million of the remaining outstanding 9.75% senior notes due 2021 (the “2021 Senior Notes) and pay the related accrued interest, premiums, fees and expenses associated therewith. The remaining amount was used for general corporate purposes. 8.50% Senior Unsecured Notes Due 2024 On September 1, 2017, the Company issued and sold $250.0 million in aggregate principal amount of 8.50% Senior Notes due 2024 (the “2024 Senior Notes”). The 2024 Senior Notes were sold to qualified institutional buyers in accordance with Rule 144A under the Securities Act and outside the United States pursuant to Regulation S under the Securities Act. The 2024 Senior Notes bear interest at a rate of 8.50% annually on the principal amount payable semi-annually in arrears on March 1 and September 1 of each year, beginning on March 1, 2018. The 2024 Senior Notes were sold at a price of 100%. The 2024 Senior Notes will mature on September 1, 2024. The 2024 Senior Notes are unsecured debt obligations of the Company, and are unconditionally guaranteed by certain of its domestic subsidiaries. The 2024 Senior Notes are redeemable at the Company’s option, in whole or in part, (i) at any time prior to September 1, 2020 at 100% of the aggregate principal amount of 2024 Senior Notes redeemed plus the applicable “make whole” premium specified in the indenture that governs the Company’s 2024 Notes (the “2024 Senior Notes Indenture”), plus accrued and unpaid interest, if any, to the redemption date and (ii) at any time on or after September 1, 2020 at the premium, if any, specified in the 2024 Senior Notes Indenture that will decrease over time, plus accrued and unpaid interest, if any, to the redemption date. In addition, prior to September 1, 2020, at its option, the Company may redeem up to 40% of the aggregate principal amount of the 2024 Senior Notes at a redemption price of 108.5% of the aggregate principal amount of 2024 Senior Notes redeemed, plus accrued and unpaid interest, if any, to the redemption date, with the proceeds of certain equity offerings as described in the 2024 Senior Notes Indenture. The 2024 Senior Notes and the related guarantees have not been and will not be registered under the Securities Act, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities or blue sky laws and foreign securities laws. The Company used the net proceeds of the 2024 Senior Notes offering to retire a portion of the 2021 Senior Notes, to pay the related accrued interest, premiums, fees and expenses associated therewith and for general corporate purposes. Consumer Loan Securitizations 2019‑1 Facility On February 25, 2019 (the “2019‑1 Closing Date”), the Company and several of its subsidiaries entered into a receivables securitization (the “2019‑1 Facility”) with PCAM Credit II, LLC, as lender (the “2019‑1 Lender”). The 2019‑1 Lender is an affiliate of Park Cities Asset Management, LLC. The 2019‑1 Facility finances Securitization Receivables that have been and will be originated or acquired under the Company’s NetCredit and CashNetUSA brands by several of the Company’s subsidiaries and that meet specified eligibility criteria. Under the 2019‑1 Facility, eligible Securitization Receivables are sold to a wholly-owned subsidiary of the Company (the “2019‑1 Debtor”) and serviced by another subsidiary of the Company. The 2019‑1 2019‑1 2019‑1 2019‑1 2019‑1 As of September 30, 2019, the total outstanding amount of the 2019‑1 Facility was $12.8 million. The 2019‑1 2019‑1 2019‑1 2019‑1 2019‑1 2019‑1 2019‑1 2019‑1 2019‑1 2019‑1 2019‑1 2019‑1 All amounts due under the 2019 ‑1 Facility are secured by all of the 2019 ‑1 Debtor’s assets, which include the eligible Securiti zation Receivables transferred to the 2019 ‑1 Debtor, related rights under the eligible Securitization Receivables, a bank account and certain other related collateral. The Company has issued a limited indemnity to the 2019 ‑1 Lender for certain “bad acts,” and the Company has agreed for the benefit of the 2019 ‑1 Lender to meet certain ongoing financial performance covenants. The 2019‑1 2019‑1 2019‑1 2018‑A Notes On October 31, 2018 (the “2018‑A Closing Date”), the Company issued $95,000,000 Class A Asset Backed Notes (the “2018-A Class A Notes”) and $30,400,000 Class B Asset Backed Notes (the “2018-A Class B Notes” and, collectively with the 2018-A Class A Notes, the “2018‑A Notes”), through an indirect subsidiary. The 2018-A Class A Notes bear interest at 4.20% and the 2018-A Class B Notes bear interest at 7.37%. The 2018‑A Notes are backed by a pool of unsecured consumer installment loans (“Securitization Receivables”) and represent obligations of the issuer only. The 2018‑A Notes are not guaranteed by the Company. Under the 2018‑A Notes, Securitization Receivables are sold to a wholly-owned subsidiary of the Company and serviced by another subsidiary of the Company. As of September 30, 2019 and December 31, 2018, the total outstanding amount of the 2018‑A Notes was $50.9 million and $111.4 million, respectively. The net proceeds of the offering of the 2018‑A Notes on the 2018‑A Closing Date were used to acquire the Securitization Receivables from the Company, fund a reserve account and pay fees and expenses incurred in connection with the transaction. The 2018 ‑ ‑ 2018‑2 Facility On October 23, 2018, the Company and several of its subsidiaries entered into a receivables funding agreement (the “2018 ‑ ‑ ‑ ‑ ‑ The 2018 ‑ ‑ As of September 30, 2019 and December 31, 2018, the total outstanding amount of the 2018‑2 Facility was $80.0 million and $25.0 million, respectively The 2018 ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ All amounts due under the 2018 ‑ ‑ ‑ The 2018 ‑ 2 Facility documents contain customary provisions for securitiza tions, including: representations and warranties as to the eligibility of the Securitization Receivables and other matters; indemnification for specified losses not including losses due to the inability of consumers to repay their loans; covenants regardin g special purpose entity matters; and default and termination provisions that provide for the acceleration of the 2018 ‑ 2 Facility in circumstances including, but not limited to, failure to make payments when due, servicer defaults, certain insolvency event s, breaches of representations, warranties or covenants, failure to maintain the security interest in the Securitization Receivables and defaults under other material indebtedness of the 2018 ‑ 2 Debtor. 2018‑1 Facility On July 23, 2018, the Company and several of its subsidiaries entered into a receivables funding agreement (the “2018‑1 Facility”) with Pacific Western Bank, as lender (the “2018‑1 Lender”). The 2018‑1 Facility collateralizes Securitization Receivables that have been and will be originated or acquired under the Company’s NetCredit brand by several of its subsidiaries and that meet specified eligibility criteria in exchange for a revolving note. Under the 2018‑1 Facility, Securitization Receivables are sold to a wholly-owned subsidiary of the Company (the “2018‑1 Debtor”) and serviced by another subsidiary of the Company. The 2018‑1 Debtor has issued a revolving note with an initial maximum principal balance of $150.0 million, which is required to be secured by 1.25 times the drawn amount in eligible Securitization Receivables. The 2018‑1 Facility is non-recourse to the Company and matures on July 22, 2023. As of September 30, 2019 and 2018 and December 31, 2018, the total outstanding amount of the 2018‑1 Facility was $91.0 million, $46.6 million and $36.0 million, respectively. The 2018 ‑ ‑ ‑ ‑ ‑ ‑ ‑ All amounts due under the 2018 ‑ ‑ ‑ The 2018 ‑ ‑ ‑ 2016‑1 Facility On January 15, 2016, the Company and certain of its subsidiaries entered into a receivables securitization (as amended, the “2016 ‑ ‑ ‑ ‑ ‑ ‑ Subject to certain exceptions, the 2016 ‑ As of September 30, 2018 and December 31, 2018, the carrying amount of the 2016-1 Facility was $162.9 million and $54.9 million, respectively. 2016‑2 Facility On December 1, 2016, the Company and certain of its subsidiaries entered into a receivables securitization (the “2016‑2 Facility”) with Redpoint Capital Asset Funding, LLC, as lender. The 2016‑2 Facility securitized Securitization Receivables that were originated or acquired under the Company’s NetCredit brand by several of the Company’s subsidiaries and that met specified eligibility criteria, including that the annual percentage rate for each securitized consumer loan was greater than or equal to 90%. Under the 2016‑2 Facility, Securitization Receivables are sold to a wholly-owned subsidiary of the Company and serviced by another subsidiary of the Company. In October 2018, the 2016 2 Facility was repaid in full and there is no remaining amount available to be borrowed. As of , the carrying amount of the 2016 2 Facility was $15.1 million. Revolving Credit Facility On June 30, 2017, the Company and certain of its operating subsidiaries entered into a secured revolving credit agreement with a syndicate of banks including TBK Bank, SSB (“TBK”), as administrative agent and collateral agent, Jefferies Finance LLC and TBK as Joint Lead Arrangers and joint lead bookrunners, and Veritex Community Bank (as successor in interest to Green Bank, N.A.), as lender (as amended the “Credit Agreement”). On April 13, 2018 and October 5, 2018, the Credit Agreement was amended to include Pacific Western Bank and Axos Bank, respectively, as lenders in the syndicate of lenders. Additionally, on July 1, 2019 the Credit Agreement was amended to, amongst other changes, extend the maturity date to June 30, 2022 from May 1, 2020 and increase the advance rate to 65% from 53%. The Credit Agreement is secured by domestic receivables. The borrowing limit in the Credit Agreement, as amended, is $125 million and its maturity date is June 30, 2022. The Company had outstanding borrowings under the Credit Agreement of $25.0 million and $22.0 million as of September 30, 2019 and December 31, 2018, respectively. There were no outstanding borrowings under the Credit Agreement as of September 30, 2018. The Credit Agreement provides for a revolving credit line with interest on borrowings under the facility at prime rate plus 1.00%. In addition, the Credit Agreement provides for payment of a commitment fee calculated with respect to the unused portion of the line, and ranges from 0.30% per annum to 0.50% per annum depending on usage. A portion of the revolving credit facility, up to a maximum of $20 million, is available for the issuance of letters of credit. The Company had outstanding letters of credit under the Credit Agreement of $1.2 million, $3.6 million and $1.6 million as of September 30, 2019 and 2018 and December 31, 2018, respectively. The Credit Agreement provides for certain prepayment penalties if it is terminated on or before its first and second anniversary date, subject to certain exceptions. The Credit Agreement contains certain limitations on the incurrence of additional indebtedness, investments, the attachment of liens to the Company’s property, the amount of dividends and other distributions, fundamental changes to the Company or its business and certain other activities of the Company. The Credit Agreement contains standard financial covenants for a facility of this type based on a leverage ratio and a fixed charge coverage ratio. The Credit Agreement also provides for customary affirmative covenants, including financial reporting requirements, and certain events of default, including payment defaults, covenant defaults and other customary defaults. 9.75% Senior Unsecured Notes Due 2021 On May 30, 2014, the Company issued and sold $500.0 million in aggregate principal amount of 9.75% Senior Notes due 2021. The 2021 Senior Notes bore interest at a rate of 9.75% annually on the principal amount payable semi-annually in arrears on June 1 and December 1 of each year, beginning on December 1, 2014. The 2021 Senior Notes were sold at a discount of the principal amount to yield 10.0% to maturity and would have matured on June 1, 2021. During the year ended December 31, 2018 the Company repurchased the remaining $345.0 million of principal amount of the 2021 Senior Notes, which included $228.5 million principal amount of the 2021 Senior Notes for aggregate cash consideration of $241.6 million plus accrued interest during the nine months ended September 30, 2018. During the nine months ended September 30, 2018 the Company recorded a loss on extinguishment of debt of approximately $17.2 million ($13.6 million net of tax), which is included in “Loss on early extinguishment of debt” in the consolidated statements of income. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 5. Income Taxes The Company’s effective tax rate for the nine months ended September 30, 2019 was 23.2%, compared to 3.9% for the nine months ended September 30, 2018. The increase is primarily attributable to tax benefits recorded in 2018 related to the acceleration of deductions on the loan portfolio and fixed assets coupled with the overall decrease in the federal tax rate from 35 % to 21 % resulting from the Tax Cu ts and Jobs Act. As of September 30, 2019, the balance of unrecognized tax benefits was $ 51.3 ($50.3 million net of the federal benefit of state matters), which is included in “Accounts payable and accrued expenses” on the consolidated balance sheet The Company had $13.9 million and $13.3 million of unrecognized tax benefits as of The Company During the third quarter of 2019, an IRS examination began in connection with the Company’s 2017 tax return and related carryback claim. The Company’s U.S. tax returns are subject to examination by federal and state taxing authorities. The statute of limitations related to the Company’s consolidated Federal income tax returns is closed for all tax years up to and including 2013. The years open to examination by state, local and foreign government authorities vary by jurisdiction, but the statute of limitation is generally three years from the date the tax return is filed. For jurisdictions that have generated net operating losses, carryovers may be subject to the statute of limitations applicable for the year those carryovers are utilized. In these cases, the period for which the losses may be adjusted will extend to conform with the statute of limitations for the year in which the losses are utilized. In most circumstances, this is expected to increase the length of time that the applicable taxing authority may examine the carryovers by one year or longer, in limited cases. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 6. Accumulated Other Comprehensive Loss The following tables set forth the components of accumulated other comprehensive loss, net of tax for the three and nine months ended September 30, 2019 and 2018 (in thousands): Foreign currency translation loss Total Balance at June 30, 2018 $ (10,905 ) $ (10,905 ) Other comprehensive loss, before reclassifications and tax (2,019 ) (2,019 ) Tax impact 456 456 Balance at September 30, 2018 $ (12,468 ) $ (12,468 ) Balance at June 30, 2019 $ (14,774 ) $ (14,774 ) Other comprehensive loss, before reclassifications and tax (3,350 ) (3,350 ) Tax impact 966 966 Balance at September 30, 2019 $ (17,158 ) $ (17,158 ) Foreign currency translation gain (loss) Total Balance at December 31, 2017 $ (7,086 ) $ (7,086 ) Other comprehensive loss, before reclassifications and tax (6,869 ) (6,869 ) Tax impact 1,547 1,547 Australia and Canada liquidation (1) 2,343 2,343 Tax impact (781 ) (781 ) Reclassification of certain deferred tax effects (2) (1,622 ) (1,622 ) Balance at September 30, 2018 $ (12,468 ) $ (12,468 ) Balance at December 31, 2018 $ (13,805 ) $ (13,805 ) Other comprehensive loss, before reclassifications and tax (4,286 ) (4,286 ) Tax impact 933 933 Balance at September 30, 2019 $ (17,158 ) $ (17,158 ) (1) Amount reclassified from accumulated other comprehensive loss represents the realization of foreign currency translation losses on the Company’s Australia and Canada businesses for the nine months ended September 30, 2018. These amounts were recorded in “Foreign currency transaction loss” on the consolidated statements of income. See Note 1 for additional information. (2) Amount reclassified from accumulated other comprehensive loss represents stranded tax effects resulting from the newly enacted federal corporate income tax rate under the Tax Cuts and Jobs Act. The amount of the reclassification is the difference between the historical corporate income tax rate and the newly enacted 21 percent corporate income tax rate. These amounts were recorded to retained earnings on the consolidated balance sheets. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 7. Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by giving effect to the potential dilution that could occur if securities or other contracts to issue common shares were exercised and converted into common shares during the period. Restricted stock units issued under the Company’s stock-based employee compensation plans are included in diluted shares upon the granting of the awards even though the vesting of shares will occur over time. The following table sets forth the reconciliation of numerators and denominators of basic and diluted earnings per share computations for the three and nine months ended September 30, 2019 and 2018 (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Numerator: Net income $ 27,085 $ 15,304 $ 87,165 $ 61,427 Denominator: Total weighted average basic shares 33,997 34,168 33,770 33,938 Shares applicable to stock-based compensation 580 1,497 722 1,262 Total weighted average diluted shares 34,577 35,665 34,492 35,200 Earnings per share: Net income per share – basic $ 0.80 $ 0.45 $ 2.58 $ 1.81 Net income per share – diluted $ 0.78 $ 0.43 $ 2.53 $ 1.75 For the three months ended September 30, and September 30, of common stock underlying restricted stock units, respectively, were excluded from the calculation of diluted net income per share becau se their effect would have been antidilutive. |
Operating Segment Information
Operating Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Operating Segment Information | 8. Operating Segment Information The Company provides online financial services to non-prime credit consumers and small businesses in the United States, United Kingdom, and Brazil and has one reportable segment, which is composed of the Company’s domestic and international operations and corporate services. The Company has aggregated all components of its business into a single operating segment based on the similarities of the economic characteristics, the nature of the products and services, the nature of the production and distribution methods, the shared technology platforms, the type of customer and the nature of the regulatory environment. The following tables present information on the Company’s domestic, international operations and corporate services as of and for the three and nine months ended September 30, 2019 and 2018 (dollars in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Revenue Domestic $ 300,609 $ 251,054 $ 812,802 $ 677,658 International 28,904 42,825 95,594 123,820 Total revenue $ 329,513 $ 293,879 $ 908,396 $ 801,478 Income (loss) from operations Domestic $ 84,855 $ 63,409 $ 277,936 $ 223,351 International (1,842 ) 513 (16,400 ) 3,301 Corporate services (28,572 ) (26,125 ) (89,706 ) (84,049 ) Total income from operations $ 54,441 $ 37,797 $ 171,830 $ 142,603 Depreciation and amortization Domestic $ 1,908 $ 1,800 $ 6,062 $ 5,555 International 416 358 1,224 1,101 Corporate services 1,392 1,530 4,556 4,707 Total depreciation and amortization $ 3,716 $ 3,688 $ 11,842 $ 11,363 Expenditures for property and equipment Domestic $ 3,550 $ 1,927 $ 8,811 $ 6,131 International 1,178 1,186 3,491 3,140 Corporate services 824 1,125 4,157 2,032 Total expenditures for property and equipment $ 5,552 $ 4,238 $ 16,459 $ 11,303 September 30, 2019 2018 Property and equipment, net Domestic $ 27,593 $ 19,360 International 7,125 9,056 Corporate services 20,233 20,098 Total property and equipment, net $ 54,951 $ 48,514 Assets Domestic $ 1,291,611 $ 1,079,652 International 125,228 138,217 Corporate services 83,838 208,399 Total assets $ 1,500,677 $ 1,426,268 Geographic Information The following table presents the Company’s revenue by geographic region for the three and nine months ended September 30, 2019 and 2018 (dollars in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Revenue United States $ 300,609 $ 251,054 $ 812,802 $ 677,658 United Kingdom 23,900 36,564 78,901 105,563 Other international countries 5,004 6,261 16,693 18,257 Total revenue $ 329,513 $ 293,879 $ 908,396 $ 801,478 The Company’s long-lived assets, which consist of the Company’s property and equipment, were $55.0 million and $48.5 million at September 30, 2019 and 2018, respectively. The operations for the Company’s domestic and international businesses are primarily located within the United States, and the value of any long-lived assets located outside of the United States is immaterial. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Litigation On April 23, 2018, the Commonwealth of Virginia, through Attorney General Mark R. Herring, filed a lawsuit in the Circuit Court for the County of Fairfax, Virginia against NC Financial Solutions of Utah, LLC (“NC Utah”), a subsidiary of the Company. The lawsuit alleges violations of the Virginia Consumer Protection Act (“VCPA”) relating to NC Utah’s communications with customers, collections of certain payments, its loan agreements, and the rates it charged to Virginia borrowers. The plaintiff is seeking to enjoin NC Utah from continuing its current lending practices in Virginia, restitution, civil penalties, and costs and expenses in connection with the same. Neither the likelihood of an unfavorable decision nor the ultimate liability, if any, with respect to this matter can be determined at this time, and the Company is currently unable to estimate a range of reasonably possible losses, as defined by ASC 450-20-20, Contingencies–Loss Contingencies–Glossary, The Company is also involved in certain routine legal proceedings, claims and litigation matters encountered in the ordinary course of its business. Certain of these matters may be covered to an extent by insurance or by indemnification agreements with third parties. The Company has recorded accruals in its consolidated financial statements for those matters in which it is probable that it has incurred a loss and the amount of the loss, or range of loss, can be reasonably estimated. In the opinion of management, the resolution of these matters will not have a material adverse effect on the Company’s financial position, results of operations or liquidity. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 10 . Derivative Instruments The Company periodically uses derivative instruments to manage risk from changes in market conditions that may affect the Company’s financial performance. The Company has primarily used derivative instruments to manage its primary market risks, which are interest rate risk and foreign currency exchange rate risk. The Company has periodically used forward currency exchange contracts to minimize the effects of foreign currency risk in the United Kingdom and Brazil. The forward currency exchange contracts are non-designated derivatives. Any gain or loss resulting from these contracts is recorded as income or loss and is included in “Foreign currency transaction loss” in the Company’s consolidated statements of income. As of September 30, 2019, the Company did not manage its exposure to risk from foreign currency exchange rate fluctuations through the use of forward currency exchange contracts in the United Kingdom or Brazil. The Company had no outstanding derivative instruments as of September 30, 2019 and 2018 and December 31, 2018. The following table presents information on the effect of derivative instruments on the consolidated results of operations and accumulated other comprehensive income (“AOCI”) for the nine months ended September 30, 2019 and 2018 (dollars in thousands): Gains (Losses) Gains (Losses) Recognized in Gains (Losses) Reclassified From Income Recognized in AOCI AOCI into Income Nine Months Ended Nine Months Ended Nine Months Ended September 30, September 30, September 30, 2019 2018 2019 2018 2019 2018 Non-designated derivatives: Forward currency exchange contracts (1) $ — $ 243 $ — $ — $ — $ — Total $ — $ 243 $ — $ — $ — $ — (1) The gains (losses) on these derivatives substantially offset the (losses) gains on the economically hedged portion of the foreign intercompany balances. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 11. Related Party Transactions The Company has an agreement for direct mail production and fulfillment services with a marketing services company where David Fisher, the Company’s Chief Executive Officer and Chairman of the Board, also serves as a member of the marketing services company’s board of directors. During the nine months ended September 30, 2019 and 2018, the Company incurred $10.5 million and $8.2 million, respectively, in expenses related to these services. As of September 30, 2019 and 2018 and December 31, 2018, the Company owed the agency $4.4 million, $1.4 million and $2.5 million, respectively, related to services provided, which was included in “Accounts payable and accrued expenses” in the consolidated balance sheets. The Company believes that the transaction described above has been provided on terms no less favorable to the Company than could have been negotiated with non-affiliated third parties. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2019 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | 12. Variable Interest Entities As part of the Company’s overall funding strategy and as part of its efforts to support its liquidity from sources other than its traditional capital market sources, the Company has established a securitization program through several securitization facilities. The Company transferred certain consumer loan receivables to VIEs which issue notes backed by the underlying consumer loan receivables and are serviced by another wholly owned subsidiary of the Company. The cash flows from the loans held by the VIEs are used to repay obligations under the notes. The Company is required to evaluate the VIEs for consolidation. The Company has the ability to direct the activities of the VIEs that most significantly impact the economic performance of the entities as the servicer of the securitized loan receivables. Additionally, the Company has the right to receive residual payments, which expose it to potentially significant losses and returns. Accordingly, the Company determined it is the primary beneficiary of the VIEs and is required to consolidate them. The assets and liabilities related to the VIEs are included in the Company’s consolidated financial statements and are accounted for as secured borrowings. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 13. Fair Value Measurements Recurring Fair Value Measurements In accordance with ASC 820, Fair Value Measurements and Disclosures, Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. During the three and nine months ended September 30, 2019 and 2018, there were no transfers of assets or liabilities in or out of Level 1, Level 2 or Level 3 fair value measurements. It is the Company’s policy to value any transfers between levels of the fair value hierarchy based on end of period fair values. The Company’s financial assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2019 and 2018 and December 31, 2018 are as follows (dollars in thousands): September 30, Fair Value Measurements Using 2019 Level 1 Level 2 Level 3 Financial assets: Non-qualified savings plan assets (1) $ 2,873 $ 2,873 $ — $ — Total $ 2,873 $ 2,873 $ — $ — September 30, Fair Value Measurements Using 2018 Level 1 Level 2 Level 3 Financial assets: Non-qualified savings plan assets (1) $ 2,214 $ 2,214 $ — $ — Total $ 2,214 $ 2,214 $ — $ — December 31, Fair Value Measurements Using 2018 Level 1 Level 2 Level 3 Financial assets: Non-qualified savings plan assets (1) $ 2,052 $ 2,052 $ — $ — Total $ 2,052 $ 2,052 $ — $ — (1) The non-qualified savings plan assets are included in “Other receivables and prepaid expenses” in the Company’s consolidated balance sheets and have an offsetting liability of equal amount, which is included in “Accounts payable and accrued expenses” in the Company’s consolidated balance sheets. Fair Value Measurements on a Non-Recurring Basis The Company measures non-financial assets and liabilities such as property and equipment and intangible assets at fair value on a non-recurring basis or when events or circumstances indicate that the carrying amount of the assets may be impaired. At September 30, Financial Assets and Liabilities Not Measured at Fair Value The Company’s financial assets and liabilities as of September 30, 2019 and 2018 and December 31, 2018 that are not measured at fair value in the consolidated balance sheets are as follows (dollars in thousands): Balance at September 30, Fair Value Measurements Using 2019 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 69,945 $ 69,945 $ — $ — Short-term loans and line of credit accounts, net (1) 291,011 — — 291,011 Installment loans and RPAs, net (1)(3) 710,143 — — 747,496 Restricted cash (4) 20,719 20,719 — — Investment in unconsolidated investee (2) 6,703 — — 6,703 Total $ 1,098,521 $ 90,664 $ — $ 1,045,210 Financial liabilities: Liability for estimated losses on consumer loans guaranteed by the Company $ 1,703 $ — $ — $ 1,703 Revolving line of credit 25,000 — — 25,000 Securitization notes 236,052 — 236,668 — 8.50% senior notes due 2024 250,000 — 235,065 — 8.50% senior notes due 2025 375,000 — 343,665 — Total $ 887,755 $ — $ 815,398 $ 26,703 Balance at September 30, Fair Value Measurements Using 2018 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 164,122 $ 164,122 $ — $ — Short-term loans and line of credit accounts, net (1) 230,650 — — 230,650 Installment loans and RPAs, net (1)(3) 608,133 — — 637,880 Restricted cash (4) 20,897 20,897 — — Investment in unconsolidated investee (2) 6,703 — — 6,703 Total $ 1,030,505 $ 185,019 $ — $ 875,233 Financial liabilities: Liability for estimated losses on consumer loans guaranteed by the Company $ 2,244 $ — $ — $ 2,244 Securitization notes 226,218 — 228,819 — 9.75% senior notes due 2021 115,821 — 121,657 — 8.50% senior notes due 2024 250,000 — 253,125 — 8.50% senior notes due 2025 375,000 — 371,250 — Total $ 969,283 $ — $ 974,851 $ 2,244 Balance at December 31, Fair Value Measurements Using 2018 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 52,917 $ 52,917 $ — $ — Short-term loans and line of credit accounts, net (1) 222,860 — — 222,860 Installment loans and RPAs, net (1)(3) 637,086 — — 670,888 Restricted cash (4) 24,342 24,342 — — Investment in unconsolidated investee (2) 6,703 — — 6,703 Total $ 943,908 $ 77,259 $ — $ 900,451 Financial liabilities: Liability for estimated losses on consumer loans guaranteed by the Company $ 2,166 $ — $ — $ 2,166 Revolving line of credit 22,000 — — 22,000 Securitization notes 227,288 — 225,474 — 8.50% senior notes due 2024 250,000 — 212,500 — 8.50% senior notes due 2025 375,000 — 306,563 — Total $ 876,454 $ — $ 744,537 $ 24,166 (1) Short-term loans, line of credit accounts, installment loans and RPAs are included in “Loans and finance receivables, net” in the consolidated balance sheets. (2) Investment in unconsolidated investee is included in “Other assets” in the consolidated balance sheets. (3) Installment loan and RPAs, net include $340.0 million, $291.7 million and $319.0 million in net assets of consolidated VIEs as of September 30, 2019 and 2018 and December 31, 2018, respectively. (4) Restricted cash includes $18.6 million, $18.7 million and $22.2 million in assets of consolidated VIEs as of September 30, 2019 and 2018 and December 31, 2018, respectively. Cash and cash equivalents and restricted cash bear interest at market rates and have maturities of less than 90 days. The carrying amount of restricted cash and cash equivalents approximates fair value. Short-term loans, line of credit accounts, installment loans and RPAs are carried in the consolidated balance sheet net of the allowance for estimated losses, which is calculated by applying historical loss rates combined with recent default trends to the gross receivable balance. Short-term loans and line of credit accounts have relatively short maturity periods that are generally 12 months The Company measures the fair value of its investment in unconsolidated investee using Level 3 inputs. Because the unconsolidated investee is a private company and financial information is limited, the Company estimates the fair value based on the best available information at the measurement date. In connection with its CSO programs, the Company guarantees consumer loan payment obligations to unrelated third-party lenders for short-term and installment loans the Company arranges for consumers on the third-party lenders’ behalf and is required to purchase any defaulted loans it has guaranteed. The Company measures the fair value of its liability for third-party lender-owned consumer loans under Level 3 inputs. The fair value of these liabilities is calculated by applying historical loss rates combined with recent default trends to the gross consumer loan balance. The unobservable inputs used to calculate the fair value of these loans include historical loss rates, recent default trends and estimated remaining loan terms; therefore, the carrying value of these liabilities approximates the fair value. The Company measures the fair value of its revolving line of credit using Level 3 inputs. The Company considered the fair value of its other long-term debt and the timing of expected payment(s). The fair values of the Company’s Securitization Notes and senior notes are estimated based on quoted prices in markets that are not active, which are deemed Level 2 inputs. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events Subsequent events have been reviewed through the date these financial statements were available to be issued. 2019-A Notes On October 17, 2019 (the “2019-A Closing Date”), the Company issued $138,888,000 Class A Asset Backed Notes (the “2019-A Class A Notes”), $44,445,000 Class B Asset Backed Notes (the “2019-A Class B Notes”), and $16,667,000 Class C Asset Backed Notes (the “2019-A Class C Notes” and, collectively with the 2019-A Class A Notes and the 2019-A Class B Notes, the “2019-A Notes”), through an indirect subsidiary. The 2019-A Class A Notes bear interest at 3.96%, the 2019-A Class B Notes bear interest at 6.17%, and the 2019-A Class C Notes bear interest at 7.62%. The 2019-A Notes are backed by a pool of Securitization Receivables and represent obligations of the issuer only. The 2019-A Notes are not be guaranteed by the Company. Under the 2019‑A Notes, Securitization Receivables are sold to a wholly-owned subsidiary of the Company and serviced by another subsidiary of the Company. The net proceeds of the offering of the 2019-A Notes on the 2019-A Closing Date were used to acquire the Securitization Receivables from the Company, fund a reserve account and pay fees and expenses incurred in connection with the transaction. The amount of Securitization Receivables sold to the issuer on the 2019-A Closing Date was approximately $200.0 million. Additional Securitization Receivables totaling approximately $22.2 million are expected to be sold to the issuer by January 17, 2020. The 2019-A Notes were offered only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to certain persons outside of the United States in compliance with Regulation S under the Securities Act. The 2019-A Notes have not been registered under the Securities Act, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from the Securities Act and applicable state securities or blue sky laws and foreign securities laws. Exit of the U.K. Market On October 24, 2019, the Company announced that it intends to exit the U.K. market in the three months ended December 31, 2019. On October 25, 2019, a licensed U.K. insolvency practitioner was appointed as administrator to take control of management of the U.K. business. The Company expects to record a one-time after-tax charge of approximately $74.0 million, including one-time cash charges of approximately $43.0 million to support cessation of U.K. lending activities. The Company plans on deconsolidating its U.K. businesses and presenting them as discontinued operations beginning with the Annual Report on Form 10‑K for the year ended December 31, 2019. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements of the Company reflect the historical results of operations and cash flows of the Company during each respective period. The consolidated financial statements include goodwill and intangible assets arising from businesses previously acquired. The financial information included herein may not be indicative of the consolidated financial position, operating results, changes in stockholders’ equity and cash flows of the Company in the future. Intercompany transactions are eliminated. The Company consolidates any variable interest entity (“VIE”) where it has been determined it is the primary beneficiary. The primary beneficiary is the entity which has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance as well as the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE. The consolidated financial statements presented as of September 30, 2019 and 2018 and for the three and nine-month periods ended September 30, 2019 and 2018 are unaudited but, in management’s opinion, include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for such interim periods. Operating results for the three and nine-month periods are not necessarily indicative of the results that may be expected for the full fiscal year. These consolidated financial statements and related notes should be read in conjunction with the Company’s audited consolidated financial statements as of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016 and related notes, which are included on Form 10-K filed with the SEC on February 27, 2019. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the consolidated balance sheets (in thousands): September 30, 2019 2018 Cash and cash equivalents $ 69,945 $ 164,122 Restricted cash 20,719 20,897 Total cash, cash equivalents and restricted cash $ 90,664 $ 185,019 |
Reclassification of Accumulated Other Comprehensive Income to Net Income | Reclassification of Accumulated Other Comprehensive Income to Net Income In May 2009 and October 2009, the Company began providing services in Australia and Canada under the brand name DollarsDirect. Due to the small size of the Australian and Canadian markets and our limited operations there, we decided to exit those markets in 2016 and reallocate our resources to our other existing businesses. As a result, we stopped originating loans in those countries and have wound down our loan portfolios. During the quarter ended March 31, 2018, the Company continued the liquidation process of the legal entities related to Australia and Canada and recorded a $2.3 million loss to “Foreign currency transaction loss” in the consolidated statements of income to recognize the cumulative translation adjustment balance that had been previously recorded to “Accumulated other comprehensive loss” on the consolidated balance sheets. |
Adopted Accounting Standards | Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016‑02, Leases (Topic 842) Leases (Topic 842): Targeted Improvements Leases (Topic 842): Codification Improvements Accounting Changes and Error Corrections The Company adopted ASU 2016‑02 and ASU 2019‑01 on January 1, 2019 and elected the optional transition method permitted by ASU 2018‑11. The Company elected the package of transition practical expedients, which allows it to not reassess whether any expired or existing contracts are or contain leases and to not reassess the lease classification for existing or expired leases. The Company also elected the practical expedient to not separate lease and associated non-lease components and the short-term lease exception. The following table sets forth the impact of adoption as of January 1, 2019 (in thousands): Increase (decrease) Assets Other receivables and prepaid expenses $ (35 ) Operating lease right-of-use assets 22,332 Total assets $ 22,297 Liabilities and Stockholders' Equity Accounts payable and accrued expenses $ (16,860 ) Operating lease liabilities 39,605 Deferred tax liabilities, net (102 ) Total liabilities 22,643 Stockholders' equity: Retained earnings (346 ) Total stockholders' equity (346 ) Total liabilities and stockholders' equity $ 22,297 Accounting Standards to be Adopted in Future Periods In August 2018, the FASB issued ASU 2018‑15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract In January 2017, the FASB issued ASU 2017‑04, Intangibles – Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment In June 2016, the FASB issued ASU 2016‑13, Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which provides subsequent amendments to the initial guidance in ASU 2016 ‑13. In May 2019, the FASB issued ASU 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Reli ef, which provides entities that have certain instruments within the scope of ASC 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost , with an option to irrevocably elect the fair value option in ASC 825-10, Financial Instruments—Overall , applied on an instrument-by-instrument basis for eligible instruments, upon adoption of ASU 2016-13. ASU 2016 ‑ 13 is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. The Company is evaluating its alternatives with respect to the available accounting methods under ASU 2016 ‑ 13, including the fair value option. If the fair value option is not utilized, adoption of ASU 2016-13 will increase the allowance for credit losses with a resulting negative adjustment to retained earnings on the date of adoption. |
Current and Delinquent Loans and Finance Receivables | Current and Delinquent Loans and Finance Receivables The Company classifies its loans and finance receivables as either current or delinquent. Short-term loans are considered delinquent when payment of an amount due is not made as of the due date. If a line of credit account or installment loan customer misses one payment, that payment is considered delinquent and the balance of the loan is considered current. If a line of credit account or installment loan customer does not make two consecutive payments, the entire account or loan is classified as delinquent and placed on a non-accrual status. The Company allows for normal payment processing time before considering a loan delinquent but does not provide for any additional grace period. The Company does not accrue interest on delinquent loans and does not resume accrual of interest on a delinquent loan unless it is returned to current status. In addition, delinquent loans generally may not be renewed, and if, during its attempt to collect on a delinquent loan, the Company allows additional time for payment through a payment plan or a promise to pay, it is still considered delinquent. Generally, all payments received are first applied against accrued but unpaid interest and fees and then against the principal balance of the loan. |
Allowance and Liability for Estimated Losses on Loans and Finance Receivables | Allowance and Liability for Estimated Losses on Loans and Finance Receivables The Company monitors the performance of its loan and finance receivable portfolios and maintains either an allowance or liability for estimated losses on loans and finance receivables (including revenue, fees and/or interest) at a level estimated to be adequate to absorb losses inherent in the portfolio. The allowance for losses on the Company’s owned loans and finance receivables reduces the outstanding loans and finance receivables balance in the consolidated balance sheets. The Company provides services related to third-party lenders’ short-term and installment consumer loan products by acting as a credit services organization or credit access business, which it refers to as its CSO programs, on behalf of consumers in accordance with applicable state laws. The liability for estimated losses related to loans guaranteed under its CSO programs is initially recorded at fair value and is included in “Accounts payable and accrued expenses” in the consolidated balance sheets. In determining the allowance or liability for estimated losses on loans and finance receivables, the Company applies a documented systematic methodology. In calculating the allowance or liability for receivable losses, outstanding loans and finance receivables are divided into discrete groups of short-term loans, line of credit accounts, installment loans and RPAs and are analyzed as current or delinquent. Increases in either the allowance or the liability, net of charge-offs and recoveries, are recorded as a “Cost of revenue” in the consolidated statements of income. The allowance or liability for short-term loans classified as current is based on historical loss rates adjusted for recent default trends for current loans. For delinquent short-term loans, the allowance or liability is based on a six-month rolling aver age of loss rates by stage of collection. For line of credit account, installment loan and RPA portfolios, the Company generally uses either a migration analysis or roll-rate based methodology to estimate losses inherent in the portfolio. The allowance or liability calculation under the migration analysis and roll-rate methodology is based on historical charge-off experience and the loss emergence period, which represents the average amount of time between the first occurrence of a loss event and the charge -off of a loan or RPA. The factors the Company considers to assess the adequacy of the allowance or liability include past due performance, historical behavior of monthly vintages, underwriting changes and recent trends in delinquency in the migration anal ysis. The roll-rate methodology is based on delinquency status, payment history and recency factors to estimate future charge-offs. The Company fully reserves for loans and finance receivables once the receivable or a portion of the receivable has been classified as delinquent for 60 consecutive days and generally charges off loans and finance receivables between 60 and 65 days delinquent. If a loan or finance receivable is deemed uncollectible before it is fully reserved, it is charged off at that point. Loans and finance receivables classified as delinquent generally have an age of one to 64 days from the date any portion of the receivable became delinquent, as defined above. Recoveries on loans and finance receivables previously charged to the allowance are credited to the allowance when collected. |
Derivative Instruments Policy | The Company has periodically used forward currency exchange contracts to minimize the effects of foreign currency risk in the United Kingdom and Brazil. The forward currency exchange contracts are non-designated derivatives. Any gain or loss resulting from these contracts is recorded as income or loss and is included in “Foreign currency transaction loss” in the Company’s consolidated statements of income. As of September 30, 2019, the Company did not manage its exposure to risk from foreign currency exchange rate fluctuations through the use of forward currency exchange contracts in the United Kingdom or Brazil. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the consolidated balance sheets (in thousands): September 30, 2019 2018 Cash and cash equivalents $ 69,945 $ 164,122 Restricted cash 20,719 20,897 Total cash, cash equivalents and restricted cash $ 90,664 $ 185,019 |
Summary of Impact of Adoption ASU 2016-02 | Increase (decrease) Assets Other receivables and prepaid expenses $ (35 ) Operating lease right-of-use assets 22,332 Total assets $ 22,297 Liabilities and Stockholders' Equity Accounts payable and accrued expenses $ (16,860 ) Operating lease liabilities 39,605 Deferred tax liabilities, net (102 ) Total liabilities 22,643 Stockholders' equity: Retained earnings (346 ) Total stockholders' equity (346 ) Total liabilities and stockholders' equity $ 22,297 |
Loans and Finance Receivables_2
Loans and Finance Receivables, Credit Quality Information and Allowances and Liabilities for Estimated Losses on Loans and Finance Receivables (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Schedule of Revenue Generated from Loans and Finance Receivables | Revenue generated from the Company’s loans and finance receivables for the three and nine months ended September 30, 2019 and 2018 was as follows (dollars in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Short-term loans $ 34,844 $ 57,851 $ 117,891 $ 161,538 Line of credit accounts 146,362 98,666 361,515 256,633 Installment loans and RPAs 148,082 137,107 428,208 382,264 Total loans and finance receivables revenue 329,288 293,624 907,614 800,435 Other 225 255 782 1,043 Total revenue $ 329,513 $ 293,879 $ 908,396 $ 801,478 |
Components of Company-Owned Loans and Finance Receivables | The components of Company-owned loans and finance receivables at September 30, 2019 and 2018 and December 31, 2018 were as follows (dollars in thousands): As of September 30, 2019 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Current receivables $ 22,628 $ 312,860 $ 738,466 $ 1,073,954 Delinquent receivables: Delinquent payment amounts (1) — 18,670 3,142 21,812 Receivables on non-accrual status 18,437 5,317 54,018 77,772 Total delinquent receivables 18,437 23,987 57,160 99,584 Total loans and finance receivables, gross 41,065 336,847 795,626 1,173,538 Less: Allowance for losses (11,488 ) (75,413 ) (85,483 ) (172,384 ) Loans and finance receivables, net $ 29,577 $ 261,434 $ 710,143 $ 1,001,154 As of September 30, 2018 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Current receivables $ 46,679 $ 203,960 $ 638,910 $ 889,549 Delinquent receivables: Delinquent payment amounts (1) — 10,270 2,531 12,801 Receivables on non-accrual status 31,829 2,394 53,795 88,018 Total delinquent receivables 31,829 12,664 56,326 100,819 Total loans and finance receivables, gross 78,508 216,624 695,236 990,368 Less: Allowance for losses (23,004 ) (41,478 ) (87,103 ) (151,585 ) Loans and finance receivables, net $ 55,504 $ 175,146 $ 608,133 $ 838,783 As of December 31, 2018 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Current receivables $ 37,558 $ 213,896 $ 672,538 $ 923,992 Delinquent receivables: Delinquent payment amounts (1) — 10,783 2,696 13,479 Receivables on non-accrual status 30,167 2,884 52,732 85,783 Total delinquent receivables 30,167 13,667 55,428 99,262 Total loans and finance receivables, gross 67,725 227,563 727,966 1,023,254 Less: Allowance for losses (21,420 ) (51,008 ) (90,880 ) (163,308 ) Loans and finance receivables, net $ 46,305 $ 176,555 $ 637,086 $ 859,946 (1) Represents the delinquent portion of installment loans and line of credit account balances for customers that have only missed one payment and RPA customers who have not delivered agreed upon receivables. See “Current and Delinquent Loans and Finance Receivables” above for additional information. |
Schedule of Changes in Allowance for Losses | Changes in the allowance for losses for the Company-owned loans and finance receivables and the liability for losses on the Company’s guarantees of third-party lender-owned loans during the three and nine months ended September 30, 2019 and 2018 were as follows (dollars in thousands): Three Months Ended September 30, 2019 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Allowance for losses for Company-owned loans and finance receivables: Balance at beginning of period $ 13,729 $ 51,419 $ 90,032 $ 155,180 Cost of revenue 12,195 83,755 75,339 171,289 Charge-offs (19,026 ) (66,186 ) (102,497 ) (187,709 ) Recoveries 4,716 6,425 23,297 34,438 Effect of foreign currency translation (126 ) — (688 ) (814 ) Balance at end of period $ 11,488 $ 75,413 $ 85,483 $ 172,384 Liability for third-party lender-owned loans: Balance at beginning of period $ 1,301 $ — $ 425 $ 1,726 (Decrease) increase in liability (99 ) — 76 (23 ) Balance at end of period $ 1,202 $ — $ 501 $ 1,703 Three Months Ended September 30, 2018 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Allowance for losses for Company-owned loans and finance receivables: Balance at beginning of period $ 18,861 $ 31,050 $ 71,873 $ 121,784 Cost of revenue 26,080 46,749 90,782 163,611 Charge-offs (27,906 ) (40,010 ) (90,090 ) (158,006 ) Recoveries 6,071 3,689 14,829 24,589 Effect of foreign currency translation (102 ) — (291 ) (393 ) Balance at end of period $ 23,004 $ 41,478 $ 87,103 $ 151,585 Liability for third-party lender-owned loans: Balance at beginning of period $ 1,883 $ — $ 209 $ 2,092 Increase in liability 94 — 58 152 Balance at end of period $ 1,977 $ — $ 267 $ 2,244 Nine Months Ended September 30, 2019 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Allowance for losses for Company-owned loans and finance receivables: Balance at beginning of period $ 21,420 $ 51,008 $ 90,880 $ 163,308 Cost of revenue 42,147 169,820 237,104 449,071 Charge-offs (67,587 ) (159,429 ) (306,674 ) (533,690 ) Recoveries 15,585 14,014 64,886 94,485 Effect of foreign currency translation (77 ) — (713 ) (790 ) Balance at end of period $ 11,488 $ 75,413 $ 85,483 $ 172,384 Liability for third-party lender-owned loans: Balance at beginning of period $ 1,964 $ — $ 202 $ 2,166 (Decrease) increase in liability (762 ) — 299 (463 ) Balance at end of period $ 1,202 $ — $ 501 $ 1,703 Nine Months Ended September 30, 2018 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Allowance for losses for Company-owned loans and finance receivables: Balance at beginning of period $ 19,917 $ 31,148 $ 71,979 $ 123,044 Cost of revenue 67,011 103,343 223,470 393,824 Charge-offs (82,006 ) (103,371 ) (251,040 ) (436,417 ) Recoveries 18,332 10,358 43,820 72,510 Effect of foreign currency translation (250 ) — (1,126 ) (1,376 ) Balance at end of period $ 23,004 $ 41,478 $ 87,103 $ 151,585 Liability for third-party lender-owned loans: Balance at beginning of period $ 2,105 $ — $ 153 $ 2,258 (Decrease) increase in liability (128 ) — 114 (14 ) Balance at end of period $ 1,977 $ — $ 267 $ 2,244 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lease Expenses | Lease expenses for the three and nine months ended September 30, 2019 were as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2019 Operating lease cost $ 1,553 $ 4,671 Operating lease impairment charge — 370 Variable lease cost 57 218 Short-term lease cost 42 133 Total lease cost $ 1,652 $ 5,392 |
Future Minimum Lease Payments | Future minimum lease payments as of September 30, 2019 are as follows (in thousands): Year Amount 2019 $ 1,866 2020 7,383 2021 7,326 2022 7,018 2023 7,115 Thereafter 23,464 Total lease payments $ 54,172 Less: interest 17,402 Present value of lease liabilities $ 36,770 |
Weighted Average Remaining Lease Term and Discount Rate | The weighted average remaining lease term and discount rate as of September 30, 2019 were as follows: September 30, 2019 Weighted average remaining lease term (years) Operating leases 7.4 Weighted average discount rate Operating leases 10.80 % |
Supplemental Cash Flow Disclosures Related to Leases | Supplemental cash flow disclosures related to leases for the nine months ended September 30, 2019 were as follows (in thousands): Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 5,800 Right-of-use assets obtained in exchange for lease obligations Operating leases 25 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt Instruments and Balances Outstanding | The Company’s long-term debt instruments and balances outstanding as of September 30, 2019 and 2018 and December 31, 2018 were as follows (dollars in thousands): September 30, December 31, 2019 2018 2018 Securitization notes $ 236,052 $ 226,218 $ 227,288 Revolving line of credit 25,000 — 22,000 9.75% senior notes due 2021 — 115,821 — 8.50% senior notes due 2024 250,000 250,000 250,000 8.50% senior notes due 2025 375,000 375,000 375,000 Subtotal 886,052 967,039 874,288 Less: Long-term debt issuance costs (12,308 ) (15,948 ) (16,359 ) Total long-term debt $ 873,744 $ 951,091 $ 857,929 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Income (Loss), Net of Tax | The following tables set forth the components of accumulated other comprehensive loss, net of tax for the three and nine months ended September 30, 2019 and 2018 (in thousands): Foreign currency translation loss Total Balance at June 30, 2018 $ (10,905 ) $ (10,905 ) Other comprehensive loss, before reclassifications and tax (2,019 ) (2,019 ) Tax impact 456 456 Balance at September 30, 2018 $ (12,468 ) $ (12,468 ) Balance at June 30, 2019 $ (14,774 ) $ (14,774 ) Other comprehensive loss, before reclassifications and tax (3,350 ) (3,350 ) Tax impact 966 966 Balance at September 30, 2019 $ (17,158 ) $ (17,158 ) Foreign currency translation gain (loss) Total Balance at December 31, 2017 $ (7,086 ) $ (7,086 ) Other comprehensive loss, before reclassifications and tax (6,869 ) (6,869 ) Tax impact 1,547 1,547 Australia and Canada liquidation (1) 2,343 2,343 Tax impact (781 ) (781 ) Reclassification of certain deferred tax effects (2) (1,622 ) (1,622 ) Balance at September 30, 2018 $ (12,468 ) $ (12,468 ) Balance at December 31, 2018 $ (13,805 ) $ (13,805 ) Other comprehensive loss, before reclassifications and tax (4,286 ) (4,286 ) Tax impact 933 933 Balance at September 30, 2019 $ (17,158 ) $ (17,158 ) (1) Amount reclassified from accumulated other comprehensive loss represents the realization of foreign currency translation losses on the Company’s Australia and Canada businesses for the nine months ended September 30, 2018. These amounts were recorded in “Foreign currency transaction loss” on the consolidated statements of income. See Note 1 for additional information. (2) Amount reclassified from accumulated other comprehensive loss represents stranded tax effects resulting from the newly enacted federal corporate income tax rate under the Tax Cuts and Jobs Act. The amount of the reclassification is the difference between the historical corporate income tax rate and the newly enacted 21 percent corporate income tax rate. These amounts were recorded to retained earnings on the consolidated balance sheets. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Numerators and Denominators of Basic and Diluted Earnings per Share Computations | The following table sets forth the reconciliation of numerators and denominators of basic and diluted earnings per share computations for the three and nine months ended September 30, 2019 and 2018 (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Numerator: Net income $ 27,085 $ 15,304 $ 87,165 $ 61,427 Denominator: Total weighted average basic shares 33,997 34,168 33,770 33,938 Shares applicable to stock-based compensation 580 1,497 722 1,262 Total weighted average diluted shares 34,577 35,665 34,492 35,200 Earnings per share: Net income per share – basic $ 0.80 $ 0.45 $ 2.58 $ 1.81 Net income per share – diluted $ 0.78 $ 0.43 $ 2.53 $ 1.75 |
Operating Segment Information (
Operating Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Summary of Domestic, International Operations and Corporate Services | The following tables present information on the Company’s domestic, international operations and corporate services as of and for the three and nine months ended September 30, 2019 and 2018 (dollars in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Revenue Domestic $ 300,609 $ 251,054 $ 812,802 $ 677,658 International 28,904 42,825 95,594 123,820 Total revenue $ 329,513 $ 293,879 $ 908,396 $ 801,478 Income (loss) from operations Domestic $ 84,855 $ 63,409 $ 277,936 $ 223,351 International (1,842 ) 513 (16,400 ) 3,301 Corporate services (28,572 ) (26,125 ) (89,706 ) (84,049 ) Total income from operations $ 54,441 $ 37,797 $ 171,830 $ 142,603 Depreciation and amortization Domestic $ 1,908 $ 1,800 $ 6,062 $ 5,555 International 416 358 1,224 1,101 Corporate services 1,392 1,530 4,556 4,707 Total depreciation and amortization $ 3,716 $ 3,688 $ 11,842 $ 11,363 Expenditures for property and equipment Domestic $ 3,550 $ 1,927 $ 8,811 $ 6,131 International 1,178 1,186 3,491 3,140 Corporate services 824 1,125 4,157 2,032 Total expenditures for property and equipment $ 5,552 $ 4,238 $ 16,459 $ 11,303 September 30, 2019 2018 Property and equipment, net Domestic $ 27,593 $ 19,360 International 7,125 9,056 Corporate services 20,233 20,098 Total property and equipment, net $ 54,951 $ 48,514 Assets Domestic $ 1,291,611 $ 1,079,652 International 125,228 138,217 Corporate services 83,838 208,399 Total assets $ 1,500,677 $ 1,426,268 |
Summary of Company's Revenue by Geographical Region | The following table presents the Company’s revenue by geographic region for the three and nine months ended September 30, 2019 and 2018 (dollars in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Revenue United States $ 300,609 $ 251,054 $ 812,802 $ 677,658 United Kingdom 23,900 36,564 78,901 105,563 Other international countries 5,004 6,261 16,693 18,257 Total revenue $ 329,513 $ 293,879 $ 908,396 $ 801,478 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Effect Of Derivative Instruments | The following table presents information on the effect of derivative instruments on the consolidated results of operations and accumulated other comprehensive income (“AOCI”) for the nine months ended September 30, 2019 and 2018 (dollars in thousands): Gains (Losses) Gains (Losses) Recognized in Gains (Losses) Reclassified From Income Recognized in AOCI AOCI into Income Nine Months Ended Nine Months Ended Nine Months Ended September 30, September 30, September 30, 2019 2018 2019 2018 2019 2018 Non-designated derivatives: Forward currency exchange contracts (1) $ — $ 243 $ — $ — $ — $ — Total $ — $ 243 $ — $ — $ — $ — (1) The gains (losses) on these derivatives substantially offset the (losses) gains on the economically hedged portion of the foreign intercompany balances. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Assets and Liabilities Measured on Recurring Basis | The Company’s financial assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2019 and 2018 and December 31, 2018 are as follows (dollars in thousands): September 30, Fair Value Measurements Using 2019 Level 1 Level 2 Level 3 Financial assets: Non-qualified savings plan assets (1) $ 2,873 $ 2,873 $ — $ — Total $ 2,873 $ 2,873 $ — $ — September 30, Fair Value Measurements Using 2018 Level 1 Level 2 Level 3 Financial assets: Non-qualified savings plan assets (1) $ 2,214 $ 2,214 $ — $ — Total $ 2,214 $ 2,214 $ — $ — December 31, Fair Value Measurements Using 2018 Level 1 Level 2 Level 3 Financial assets: Non-qualified savings plan assets (1) $ 2,052 $ 2,052 $ — $ — Total $ 2,052 $ 2,052 $ — $ — (1) The non-qualified savings plan assets are included in “Other receivables and prepaid expenses” in the Company’s consolidated balance sheets and have an offsetting liability of equal amount, which is included in “Accounts payable and accrued expenses” in the Company’s consolidated balance sheets. |
Financial Assets and Liabilities Not Measured at Fair Value | The Company’s financial assets and liabilities as of September 30, 2019 and 2018 and December 31, 2018 that are not measured at fair value in the consolidated balance sheets are as follows (dollars in thousands): Balance at September 30, Fair Value Measurements Using 2019 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 69,945 $ 69,945 $ — $ — Short-term loans and line of credit accounts, net (1) 291,011 — — 291,011 Installment loans and RPAs, net (1)(3) 710,143 — — 747,496 Restricted cash (4) 20,719 20,719 — — Investment in unconsolidated investee (2) 6,703 — — 6,703 Total $ 1,098,521 $ 90,664 $ — $ 1,045,210 Financial liabilities: Liability for estimated losses on consumer loans guaranteed by the Company $ 1,703 $ — $ — $ 1,703 Revolving line of credit 25,000 — — 25,000 Securitization notes 236,052 — 236,668 — 8.50% senior notes due 2024 250,000 — 235,065 — 8.50% senior notes due 2025 375,000 — 343,665 — Total $ 887,755 $ — $ 815,398 $ 26,703 Balance at September 30, Fair Value Measurements Using 2018 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 164,122 $ 164,122 $ — $ — Short-term loans and line of credit accounts, net (1) 230,650 — — 230,650 Installment loans and RPAs, net (1)(3) 608,133 — — 637,880 Restricted cash (4) 20,897 20,897 — — Investment in unconsolidated investee (2) 6,703 — — 6,703 Total $ 1,030,505 $ 185,019 $ — $ 875,233 Financial liabilities: Liability for estimated losses on consumer loans guaranteed by the Company $ 2,244 $ — $ — $ 2,244 Securitization notes 226,218 — 228,819 — 9.75% senior notes due 2021 115,821 — 121,657 — 8.50% senior notes due 2024 250,000 — 253,125 — 8.50% senior notes due 2025 375,000 — 371,250 — Total $ 969,283 $ — $ 974,851 $ 2,244 Balance at December 31, Fair Value Measurements Using 2018 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 52,917 $ 52,917 $ — $ — Short-term loans and line of credit accounts, net (1) 222,860 — — 222,860 Installment loans and RPAs, net (1)(3) 637,086 — — 670,888 Restricted cash (4) 24,342 24,342 — — Investment in unconsolidated investee (2) 6,703 — — 6,703 Total $ 943,908 $ 77,259 $ — $ 900,451 Financial liabilities: Liability for estimated losses on consumer loans guaranteed by the Company $ 2,166 $ — $ — $ 2,166 Revolving line of credit 22,000 — — 22,000 Securitization notes 227,288 — 225,474 — 8.50% senior notes due 2024 250,000 — 212,500 — 8.50% senior notes due 2025 375,000 — 306,563 — Total $ 876,454 $ — $ 744,537 $ 24,166 (1) Short-term loans, line of credit accounts, installment loans and RPAs are included in “Loans and finance receivables, net” in the consolidated balance sheets. (2) Investment in unconsolidated investee is included in “Other assets” in the consolidated balance sheets. (3) Installment loan and RPAs, net include $340.0 million, $291.7 million and $319.0 million in net assets of consolidated VIEs as of September 30, 2019 and 2018 and December 31, 2018, respectively. (4) Restricted cash includes $18.6 million, $18.7 million and $22.2 million in assets of consolidated VIEs as of September 30, 2019 and 2018 and December 31, 2018, respectively. |
Significant Accounting Polici_4
Significant Accounting Policies - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||||
Cash and cash equivalents | [1] | $ 69,945 | $ 52,917 | $ 164,122 | |
Restricted cash | [1] | 20,719 | 24,342 | 20,897 | |
Total cash, cash equivalents and restricted cash | $ 90,664 | $ 77,259 | $ 185,019 | $ 98,144 | |
[1] | Includes amounts in wholly owned, bankruptcy-remote special purpose subsidiaries (“VIEs”) presented separately in the table below. |
Significant Accounting Polici_5
Significant Accounting Policies - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Australia and Canada | |
Significant Accounting Policies [Line Items] | |
Foreign currency translation loss | $ 2.3 |
Significant Accounting Polici_6
Significant Accounting Policies -Summary of Impact of Adoption ASU 2016-02 (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Assets | |||||||
Other receivables and prepaid expenses | [1] | $ 39,549 | $ 29,983 | $ 25,699 | |||
Operating lease right-of-use assets | 20,260 | ||||||
Total assets | 1,500,677 | 1,328,185 | 1,426,268 | ||||
Liabilities and Stockholders' Equity | |||||||
Accounts payable and accrued expenses | [1] | 122,212 | 89,317 | 76,188 | |||
Operating lease liabilities | 36,770 | ||||||
Deferred tax liabilities, net | 33,980 | 33,171 | 46,321 | ||||
Total liabilities | 1,066,706 | 980,417 | 1,073,600 | ||||
Stockholders' equity: | |||||||
Retained earnings | (423,234) | (336,415) | (327,744) | ||||
Total stockholders' equity | (433,971) | $ (406,453) | (347,768) | (352,668) | $ (333,645) | $ (281,687) | |
Total liabilities and stockholders' equity | 1,500,677 | $ 1,328,185 | $ 1,426,268 | ||||
ASU 2016-02 | Adjustments | |||||||
Assets | |||||||
Other receivables and prepaid expenses | (35) | ||||||
Operating lease right-of-use assets | 22,332 | ||||||
Total assets | 22,297 | ||||||
Liabilities and Stockholders' Equity | |||||||
Accounts payable and accrued expenses | (16,860) | ||||||
Operating lease liabilities | 39,605 | ||||||
Deferred tax liabilities, net | (102) | ||||||
Total liabilities | 22,643 | ||||||
Stockholders' equity: | |||||||
Retained earnings | (346) | ||||||
Total stockholders' equity | (346) | ||||||
Total liabilities and stockholders' equity | $ 22,297 | ||||||
[1] | Includes amounts in wholly owned, bankruptcy-remote special purpose subsidiaries (“VIEs”) presented separately in the table below. |
Loans and Finance Receivables_3
Loans and Finance Receivables, Credit Quality Information and Allowances and Liabilities for Estimated Losses on Loans and Finance Receivables - Schedule of Revenue Generated from Loans and Finance Receivables (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accounts Notes And Loans Receivable [Line Items] | ||||
Total loans and finance receivables revenue | $ 329,288 | $ 293,624 | $ 907,614 | $ 800,435 |
Other | 225 | 255 | 782 | 1,043 |
Total revenue | 329,513 | 293,879 | 908,396 | 801,478 |
Short-term Loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total loans and finance receivables revenue | 34,844 | 57,851 | 117,891 | 161,538 |
Line of Credit Accounts | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total loans and finance receivables revenue | 146,362 | 98,666 | 361,515 | 256,633 |
Installment Loans and RPAs | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total loans and finance receivables revenue | $ 148,082 | $ 137,107 | $ 428,208 | $ 382,264 |
Loans and Finance Receivables_4
Loans and Finance Receivables, Credit Quality Information and Allowances and Liabilities for Estimated Losses on Loans and Finance Receivables - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | |
Accounts Notes And Loans Receivable [Line Items] | |||
Days for delinquent loans to be charged off | 60 days | ||
Active consumer loans owned by third-party lenders | $ 23.6 | $ 29.7 | $ 30.1 |
Accrual for losses on consumer loan guaranty obligations | $ 1.7 | $ 2.2 | $ 2.2 |
Minimum | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Days for delinquent loans to be charged off | 60 days | ||
Delinquent loans expiry period (in days) | 1 day | ||
Maximum | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Days for delinquent loans to be charged off | 65 days | ||
Delinquent loans expiry period (in days) | 64 days |
Loans and Finance Receivables_5
Loans and Finance Receivables, Credit Quality Information and Allowances and Liabilities for Estimated Losses on Loans and Finance Receivables - Components of Company-Owned Loans and Finance Receivables (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Accounts Notes And Loans Receivable [Line Items] | |||||||
Current receivables | $ 1,073,954 | $ 923,992 | $ 889,549 | ||||
Delinquent payment amounts | [1] | 21,812 | 13,479 | 12,801 | |||
Receivables on non-accrual status | 77,772 | 85,783 | 88,018 | ||||
Total delinquent receivables | 99,584 | 99,262 | 100,819 | ||||
Total loans and finance receivables, gross | 1,173,538 | 1,023,254 | 990,368 | ||||
Less: Allowance for losses | (172,384) | $ (155,180) | (163,308) | (151,585) | $ (121,784) | $ (123,044) | |
Loans and finance receivables, net | [2] | 1,001,154 | 859,946 | 838,783 | |||
Short-term Loans | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Current receivables | 22,628 | 37,558 | 46,679 | ||||
Receivables on non-accrual status | 18,437 | 30,167 | 31,829 | ||||
Total delinquent receivables | 18,437 | 30,167 | 31,829 | ||||
Total loans and finance receivables, gross | 41,065 | 67,725 | 78,508 | ||||
Less: Allowance for losses | (11,488) | (13,729) | (21,420) | (23,004) | (18,861) | (19,917) | |
Loans and finance receivables, net | 29,577 | 46,305 | 55,504 | ||||
Line of Credit Accounts | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Current receivables | 312,860 | 213,896 | 203,960 | ||||
Delinquent payment amounts | [1] | 18,670 | 10,783 | 10,270 | |||
Receivables on non-accrual status | 5,317 | 2,884 | 2,394 | ||||
Total delinquent receivables | 23,987 | 13,667 | 12,664 | ||||
Total loans and finance receivables, gross | 336,847 | 227,563 | 216,624 | ||||
Less: Allowance for losses | (75,413) | (51,419) | (51,008) | (41,478) | (31,050) | (31,148) | |
Loans and finance receivables, net | 261,434 | 176,555 | 175,146 | ||||
Installment Loans and RPAs | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Current receivables | 738,466 | 672,538 | 638,910 | ||||
Delinquent payment amounts | [1] | 3,142 | 2,696 | 2,531 | |||
Receivables on non-accrual status | 54,018 | 52,732 | 53,795 | ||||
Total delinquent receivables | 57,160 | 55,428 | 56,326 | ||||
Total loans and finance receivables, gross | 795,626 | 727,966 | 695,236 | ||||
Less: Allowance for losses | (85,483) | $ (90,032) | (90,880) | (87,103) | $ (71,873) | $ (71,979) | |
Loans and finance receivables, net | $ 710,143 | $ 637,086 | $ 608,133 | ||||
[1] | Represents the delinquent portion of installment loans and line of credit account balances for customers that have only missed one payment and RPA customers who have not delivered agreed upon receivables. See “Current and Delinquent Loans and Finance Receivables” above for additional information. | ||||||
[2] | Includes amounts in wholly owned, bankruptcy-remote special purpose subsidiaries (“VIEs”) presented separately in the table below. |
Loans and Finance Receivables_6
Loans and Finance Receivables, Credit Quality Information and Allowances and Liabilities for Estimated Losses on Loans and Finance Receivables - Schedule of Changes in Allowance for Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Allowance for losses for Company-owned loans and finance receivables | ||||
Balance at beginning of period | $ 155,180 | $ 121,784 | $ 163,308 | $ 123,044 |
Cost of revenue | 171,289 | 163,611 | 449,071 | 393,824 |
Charge-offs | (187,709) | (158,006) | (533,690) | (436,417) |
Recoveries | 34,438 | 24,589 | 94,485 | 72,510 |
Effect of foreign currency translation | (814) | (393) | (790) | (1,376) |
Balance at end of period | 172,384 | 151,585 | 172,384 | 151,585 |
Liability for third-party lender-owned loans | ||||
Balance at beginning of period | 1,726 | 2,092 | 2,166 | 2,258 |
(Decrease) increase in liability | (23) | 152 | (463) | (14) |
Balance at end of period | 1,703 | 2,244 | 1,703 | 2,244 |
Short-term Loans | ||||
Allowance for losses for Company-owned loans and finance receivables | ||||
Balance at beginning of period | 13,729 | 18,861 | 21,420 | 19,917 |
Cost of revenue | 12,195 | 26,080 | 42,147 | 67,011 |
Charge-offs | (19,026) | (27,906) | (67,587) | (82,006) |
Recoveries | 4,716 | 6,071 | 15,585 | 18,332 |
Effect of foreign currency translation | (126) | (102) | (77) | (250) |
Balance at end of period | 11,488 | 23,004 | 11,488 | 23,004 |
Liability for third-party lender-owned loans | ||||
Balance at beginning of period | 1,301 | 1,883 | 1,964 | 2,105 |
(Decrease) increase in liability | (99) | 94 | (762) | (128) |
Balance at end of period | 1,202 | 1,977 | 1,202 | 1,977 |
Line of Credit Accounts | ||||
Allowance for losses for Company-owned loans and finance receivables | ||||
Balance at beginning of period | 51,419 | 31,050 | 51,008 | 31,148 |
Cost of revenue | 83,755 | 46,749 | 169,820 | 103,343 |
Charge-offs | (66,186) | (40,010) | (159,429) | (103,371) |
Recoveries | 6,425 | 3,689 | 14,014 | 10,358 |
Balance at end of period | 75,413 | 41,478 | 75,413 | 41,478 |
Installment Loans and RPAs | ||||
Allowance for losses for Company-owned loans and finance receivables | ||||
Balance at beginning of period | 90,032 | 71,873 | 90,880 | 71,979 |
Cost of revenue | 75,339 | 90,782 | 237,104 | 223,470 |
Charge-offs | (102,497) | (90,090) | (306,674) | (251,040) |
Recoveries | 23,297 | 14,829 | 64,886 | 43,820 |
Effect of foreign currency translation | (688) | (291) | (713) | (1,126) |
Balance at end of period | 85,483 | 87,103 | 85,483 | 87,103 |
Liability for third-party lender-owned loans | ||||
Balance at beginning of period | 425 | 209 | 202 | 153 |
(Decrease) increase in liability | 76 | 58 | 299 | 114 |
Balance at end of period | $ 501 | $ 267 | $ 501 | $ 267 |
Leases - Additional Information
Leases - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2019 | |
Lessee Lease Description [Line Items] | |
Option to extend, existence, operating lease | true |
Option to extend, description, operating lease | Certain leases include options to extend the leases for up to five years |
Option to terminate, existence, operating lease | true |
Option to terminate, description, operating lease | while others include options to terminate the leases within one year |
Option to terminate, operating lease, term | 1 year |
Minimum | |
Lessee Lease Description [Line Items] | |
Operating leases, remaining lease term | 1 year |
Maximum | |
Lessee Lease Description [Line Items] | |
Operating leases, remaining lease term | 9 years |
Option to extend, operating lease, term | 5 years |
Leases - Lease Expenses (Detail
Leases - Lease Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 1,553 | $ 4,671 |
Operating lease impairment charge | 370 | |
Variable lease cost | 57 | 218 |
Short-term lease cost | 42 | 133 |
Total lease cost | $ 1,652 | $ 5,392 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 1,866 |
2020 | 7,383 |
2021 | 7,326 |
2022 | 7,018 |
2023 | 7,115 |
Thereafter | 23,464 |
Total lease payments | 54,172 |
Less: interest | 17,402 |
Present value of lease liabilities | $ 36,770 |
Leases - Weighted Average Remai
Leases - Weighted Average Remaining Lease Term and Discount Rate (Detail) | Sep. 30, 2019 |
Weighted average remaining lease term (years) | |
Operating leases | 7 years 4 months 24 days |
Weighted average discount rate | |
Operating leases | 10.80% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Disclosures Related to Leases (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities | |
Operating cash flows from operating leases | $ 5,800 |
Right-of-use assets obtained in exchange for lease obligations | |
Operating leases | $ 25 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt Instruments and Balances Outstanding (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | |
Debt Instrument [Line Items] | ||||
Securitization notes | $ 236,052 | $ 227,288 | $ 226,218 | |
Subtotal | 886,052 | 874,288 | 967,039 | |
Less: Long-term debt issuance costs | (12,308) | (16,359) | (15,948) | |
Total long-term debt | [1] | 873,744 | 857,929 | 951,091 |
Revolving Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Revolving line of credit | 25,000 | 22,000 | ||
9.75% Senior Notes Due 2021 | ||||
Debt Instrument [Line Items] | ||||
Senior notes | 115,821 | |||
8.50% Senior Notes Due 2024 | ||||
Debt Instrument [Line Items] | ||||
Senior notes | 250,000 | 250,000 | 250,000 | |
8.50% Senior Notes Due 2025 | ||||
Debt Instrument [Line Items] | ||||
Senior notes | $ 375,000 | $ 375,000 | $ 375,000 | |
[1] | Includes amounts in wholly owned, bankruptcy-remote special purpose subsidiaries (“VIEs”) presented separately in the table below. |
Long-term Debt - Summary of L_2
Long-term Debt - Summary of Long-Term Debt Instruments and Balances Outstanding (Parenthetical) (Detail) | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Sep. 19, 2018 | Sep. 01, 2017 | May 30, 2014 | |
9.75% Senior Notes Due 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate | 9.75% | 9.75% | 9.75% | |||
Debt instrument, maturity date | Jun. 1, 2021 | Jun. 1, 2021 | ||||
8.50% Senior Notes Due 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate | 8.50% | 8.50% | 8.50% | 8.50% | ||
Debt instrument, maturity date | Sep. 1, 2024 | Sep. 1, 2024 | Sep. 1, 2024 | |||
8.50% Senior Notes Due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate | 8.50% | 8.50% | 8.50% | 8.50% | ||
Debt instrument, maturity date | Sep. 15, 2025 | Sep. 15, 2025 | Sep. 15, 2025 |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Detail) - USD ($) | Jul. 01, 2019 | Feb. 25, 2019 | Oct. 23, 2018 | Sep. 19, 2018 | Jul. 23, 2018 | Oct. 20, 2017 | Sep. 01, 2017 | Dec. 01, 2016 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Oct. 31, 2018 | May 30, 2014 |
Debt Instrument [Line Items] | ||||||||||||||
Weighted average interest rates | 9.80% | 8.74% | 9.80% | |||||||||||
Securitization notes | $ 226,218,000 | $ 236,052,000 | $ 226,218,000 | $ 227,288,000 | ||||||||||
Loss on early extinguishment of debt | $ 12,469,000 | $ 2,321,000 | $ 17,179,000 | |||||||||||
8.50% Senior Unsecured Notes Due 2025 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 375,000,000 | |||||||||||||
Debt instrument, maturity date | Sep. 15, 2025 | Sep. 15, 2025 | Sep. 15, 2025 | |||||||||||
Debt instrument, interest rate | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | |||||||||
Debt instrument, payment terms | The 2025 Senior Notes bear interest at a rate of 8.50% annually on the principal amount payable semi-annually in arrears on March 15 and September 15 of each year, beginning on March 15, 2019. | |||||||||||||
Debt instrument, percentage of sale price | 100.00% | |||||||||||||
Notes redemption, description | The 2025 Senior Notes are redeemable at the Company’s option, in whole or in part, (i) at any time prior to September 15, 2021 at 100% of the aggregate principal amount of 2025 Senior Notes redeemed plus the applicable “make whole” premium specified in the indenture that governs the Company’s 2025 Notes (the “2025 Senior Notes Indenture”), plus accrued and unpaid interest, if any, to the redemption date and (ii) at any time on or after September 15, 2021 at the premium, if any, specified in the 2025 Senior Notes Indenture that will decrease over time, plus accrued and unpaid interest, if any, to the redemption date. | |||||||||||||
Note redeem rate | 100.00% | |||||||||||||
8.50% Senior Unsecured Notes Due 2025 | $375.0 million 8.50% Senior Unsecured Notes Redemption, Under Additional Option Available | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Note redeem rate | 108.50% | |||||||||||||
Percentage of notes principal redeemable | 40.00% | |||||||||||||
9.75% Senior Unsecured Notes Due 2021 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 500,000,000 | |||||||||||||
Debt instrument, maturity date | Jun. 1, 2021 | Jun. 1, 2021 | ||||||||||||
Debt instrument, interest rate | 9.75% | 9.75% | 9.75% | 9.75% | ||||||||||
Debt instrument, repurchase of principal amount | $ 295,000,000 | $ 228,500,000 | $ 345,000,000 | |||||||||||
Debt instrument, effective percentage | 10.00% | |||||||||||||
Aggregate cash consideration paid for repurchase of principal amount with accrued interest | $ 241,600,000 | |||||||||||||
Loss on early extinguishment of debt | 17,200,000 | |||||||||||||
Loss on early extinguishment of debt, net of tax | $ 13,600,000 | |||||||||||||
8.50% Senior Unsecured Notes Due 2024 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 250,000,000 | |||||||||||||
Debt instrument, maturity date | Sep. 1, 2024 | Sep. 1, 2024 | Sep. 1, 2024 | |||||||||||
Debt instrument, interest rate | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | |||||||||
Debt instrument, payment terms | The 2024 Senior Notes bear interest at a rate of 8.50% annually on the principal amount payable semi-annually in arrears on March 1 and September 1 of each year, beginning on March 1, 2018. | |||||||||||||
Debt instrument, percentage of sale price | 100.00% | |||||||||||||
Notes redemption, description | The 2024 Senior Notes are redeemable at the Company’s option, in whole or in part, (i) at any time prior to September 1, 2020 at 100% of the aggregate principal amount of 2024 Senior Notes redeemed plus the applicable “make whole” premium specified in the indenture that governs the Company’s 2024 Notes (the “2024 Senior Notes Indenture”), plus accrued and unpaid interest, if any, to the redemption date and (ii) at any time on or after September 1, 2020 at the premium, if any, specified in the 2024 Senior Notes Indenture that will decrease over time, plus accrued and unpaid interest, if any, to the redemption date. | |||||||||||||
Note redeem rate | 100.00% | |||||||||||||
8.50% Senior Unsecured Notes Due 2024 | $250.0 million 8.50% Senior Unsecured Notes Redemption, Under Additional Option Available | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Note redeem rate | 108.50% | |||||||||||||
Percentage of notes principal redeemable | 40.00% | |||||||||||||
2019-1 Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 50,000,000 | |||||||||||||
Debt instrument maturity term | 3 years | |||||||||||||
Securitization notes | $ 12,800,000 | |||||||||||||
2019-1 Facility | LIBOR | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, effective percentage | 9.75% | |||||||||||||
Debt instrument, frequency of periodic payment | monthly | |||||||||||||
2019-1 Facility | PCAM Credit II, LLC | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 75,000,000 | |||||||||||||
2019-1 Facility | Initial Term Note | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | 30,000,000 | |||||||||||||
2019-1 Facility | Initial Term Note | PCAM Credit II, LLC | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | 50,000,000 | |||||||||||||
2019-1 Facility | Revolving Note | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | 20,000,000 | |||||||||||||
2019-1 Facility | Revolving Note | PCAM Credit II, LLC | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 25,000,000 | |||||||||||||
2018-A Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Securitization notes | $ 50,900,000 | $ 111,400,000 | ||||||||||||
2018-A Notes | Class A Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 95,000,000 | |||||||||||||
Debt instrument, interest rate | 4.20% | |||||||||||||
2018-A Notes | Class B Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 30,400,000 | |||||||||||||
Debt instrument, interest rate | 7.37% | |||||||||||||
2018-2 Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 150,000,000 | |||||||||||||
Debt instrument, maturity date | Oct. 23, 2022 | |||||||||||||
Securitization notes | $ 80,000,000 | 25,000,000 | ||||||||||||
2018-2 Facility | LIBOR | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, effective percentage | 3.75% | |||||||||||||
Debt instrument, frequency of periodic payment | monthly | |||||||||||||
2018-1 Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 150,000,000 | |||||||||||||
Debt instrument, maturity date | Jul. 22, 2023 | |||||||||||||
Securitization notes | $ 46,600,000 | $ 91,000,000 | $ 46,600,000 | 36,000,000 | ||||||||||
2018-1 Facility | LIBOR | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, effective percentage | 4.00% | |||||||||||||
Debt instrument, frequency of periodic payment | monthly | |||||||||||||
2016-1 Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Securitization notes | 162,900,000 | 162,900,000 | 54,900,000 | |||||||||||
Maximum principal amount of securitization facility | $ 275,000,000 | |||||||||||||
Maturity period of revolving facility | 2019-04 | |||||||||||||
2016-1 Facility | Maximum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Aggregate availability of variable funding notes | $ 90,000,000 | |||||||||||||
2016-1 Facility | Minimum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Aggregate availability of variable funding notes | 75,000,000 | |||||||||||||
2016-1 Facility | Initial Term Note | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 181,100,000 | |||||||||||||
2016-2 Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Securitization notes | 15,100,000 | 15,100,000 | ||||||||||||
Annual percentage rate for securitized consumer loan | 90.00% | |||||||||||||
Securitization notes remaining amount available to be borrowed | $ 0 | |||||||||||||
Revolving Credit Facility Due 2022 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Credit agreement, maturity date | Jun. 30, 2022 | May 1, 2020 | ||||||||||||
Credit agreement, advance rate | 65.00% | 53.00% | ||||||||||||
Credit agreement, description | Additionally, on July 1, 2019 the Credit Agreement was amended to, amongst other changes, extend the maturity date to June 30, 2022 from May 1, 2020 and increase the advance rate to 65% from 53%. | |||||||||||||
Maximum borrowing capacity | $ 125,000,000 | |||||||||||||
Revolving line of credit | 0 | $ 25,000,000 | 0 | 22,000,000 | ||||||||||
Revolving Credit Facility Due 2022 | Letters of Credit | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing capacity | 20,000,000 | |||||||||||||
Borrowings outstanding under credit agreement | $ 3,600,000 | $ 1,200,000 | $ 3,600,000 | $ 1,600,000 | ||||||||||
Revolving Credit Facility Due 2022 | Maximum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Commitment fee percentage | 0.50% | |||||||||||||
Revolving Credit Facility Due 2022 | Minimum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Commitment fee percentage | 0.30% | |||||||||||||
Revolving Credit Facility Due 2022 | Prime Rate | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, basis spread on variable rate | 1.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | |
Income Tax Contingency [Line Items] | |||||
Effective tax rate | 23.20% | 3.90% | |||
Federal statutory rate | 21.00% | 35.00% | |||
Unrecognized tax benefits | $ 51.3 | $ 13.9 | $ 13.3 | ||
Effective income tax rate reconciliation at federal benefit of state matters, Amount | 50.3 | ||||
Unrecognized tax benefits that would affect the effective tax rate | $ 15.1 | ||||
Internal Revenue Service (IRS) | |||||
Income Tax Contingency [Line Items] | |||||
Income tax refunds received | $ 45.7 | ||||
State Local And Foreign Jurisdiction Tax Authority | |||||
Income Tax Contingency [Line Items] | |||||
Statute of limitation period | 3 years |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Components of Accumulated Other Comprehensive Loss, Net of Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Balance | $ 406,453 | $ 333,645 | $ 347,768 | $ 281,687 | |
Other comprehensive loss, before reclassifications and tax | (3,350) | (2,019) | (4,286) | (6,869) | |
Tax impact | 966 | 456 | 933 | 1,547 | |
Australia and Canada liquidation | [1] | 2,343 | |||
Tax impact | (781) | ||||
Reclassification of certain deferred tax effects | 1,622 | ||||
Balance | 433,971 | 352,668 | 433,971 | 352,668 | |
Foreign Currency Translation Gain (Loss) | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Balance | (14,774) | (10,905) | (13,805) | (7,086) | |
Other comprehensive loss, before reclassifications and tax | (3,350) | (2,019) | (4,286) | (6,869) | |
Tax impact | 966 | 456 | 933 | 1,547 | |
Australia and Canada liquidation | [1] | 2,343 | |||
Tax impact | (781) | ||||
Reclassification of certain deferred tax effects | [2] | (1,622) | |||
Balance | (17,158) | (12,468) | (17,158) | (12,468) | |
Accumulated Other Comprehensive Loss | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Balance | (14,774) | (10,905) | (13,805) | (7,086) | |
Other comprehensive loss, before reclassifications and tax | (2,019) | (6,869) | |||
Reclassification of certain deferred tax effects | [2] | (1,622) | |||
Balance | $ (17,158) | $ (12,468) | $ (17,158) | $ (12,468) | |
[1] | Amount reclassified from accumulated other comprehensive loss represents the realization of foreign currency translation losses on the Company’s Australia and Canada businesses for the nine months ended September 30, 2018. These amounts were recorded in “Foreign currency transaction loss” on the consolidated statements of income. See Note 1 for additional information. | ||||
[2] | Amount reclassified from accumulated other comprehensive loss represents stranded tax effects resulting from the newly enacted federal corporate income tax rate under the Tax Cuts and Jobs Act. The amount of the reclassification is the difference between the historical corporate income tax rate and the newly enacted 21 percent corporate income tax rate. These amounts were recorded to retained earnings on the consolidated balance sheets. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Schedule of Components of Accumulated Other Comprehensive Loss, Net of Tax (Parenthetical) (Detail) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2017 | |
Equity [Abstract] | ||
Corporate income tax rate | 21.00% | 35.00% |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Reconciliation of Numerators and Denominators of Basic and Diluted Earnings per Share Computations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Numerator: | ||||
Net Income | $ 27,085 | $ 15,304 | $ 87,165 | $ 61,427 |
Denominator: | ||||
Total weighted average basic shares | 33,997 | 34,168 | 33,770 | 33,938 |
Shares applicable to stock-based compensation | 580 | 1,497 | 722 | 1,262 |
Total weighted average diluted shares | 34,577 | 35,665 | 34,492 | 35,200 |
Earnings Per Share: | ||||
Net income per share – basic | $ 0.80 | $ 0.45 | $ 2.58 | $ 1.81 |
Net income per share – diluted | $ 0.78 | $ 0.43 | $ 2.53 | $ 1.75 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock options not included in computation of diluted earnings per share | 834,158 | 18,213 | 813,076 | 403,319 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock options not included in computation of diluted earnings per share | 7,229 | 3,558 | 13,829 | 100,698 |
Operating Segment Information -
Operating Segment Information - Additional Information (Detail) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019USD ($)Segment | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segment | 1 | ||
Number of operating segment | 1 | ||
Property and equipment, net | $ | $ 54,951 | $ 49,553 | $ 48,514 |
Operating Segment Information_2
Operating Segment Information - Summary of Domestic, International Operations and Corporate Services (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Revenues [Abstract] | |||||
Revenue | $ 329,513 | $ 293,879 | $ 908,396 | $ 801,478 | |
Income (loss) from operations [Abstract] | |||||
Income (loss) from operations | 54,441 | 37,797 | 171,830 | 142,603 | |
Depreciation and amortization [Abstract] | |||||
Depreciation and amortization | 3,716 | 3,688 | 11,842 | 11,363 | |
Expenditures for property and equipment [Abstract] | |||||
Expenditures for property and equipment | 5,552 | 4,238 | 16,459 | 11,303 | |
Property and equipment, net [Abstract] | |||||
Property and equipment, net | 54,951 | 48,514 | 54,951 | 48,514 | $ 49,553 |
Assets | |||||
Assets | 1,500,677 | 1,426,268 | 1,500,677 | 1,426,268 | $ 1,328,185 |
Domestic | |||||
Revenues [Abstract] | |||||
Revenue | 300,609 | 251,054 | 812,802 | 677,658 | |
Income (loss) from operations [Abstract] | |||||
Income (loss) from operations | 84,855 | 63,409 | 277,936 | 223,351 | |
Depreciation and amortization [Abstract] | |||||
Depreciation and amortization | 1,908 | 1,800 | 6,062 | 5,555 | |
Expenditures for property and equipment [Abstract] | |||||
Expenditures for property and equipment | 3,550 | 1,927 | 8,811 | 6,131 | |
Property and equipment, net [Abstract] | |||||
Property and equipment, net | 27,593 | 19,360 | 27,593 | 19,360 | |
Assets | |||||
Assets | 1,291,611 | 1,079,652 | 1,291,611 | 1,079,652 | |
International | |||||
Revenues [Abstract] | |||||
Revenue | 28,904 | 42,825 | 95,594 | 123,820 | |
Income (loss) from operations [Abstract] | |||||
Income (loss) from operations | (1,842) | 513 | (16,400) | 3,301 | |
Depreciation and amortization [Abstract] | |||||
Depreciation and amortization | 416 | 358 | 1,224 | 1,101 | |
Expenditures for property and equipment [Abstract] | |||||
Expenditures for property and equipment | 1,178 | 1,186 | 3,491 | 3,140 | |
Property and equipment, net [Abstract] | |||||
Property and equipment, net | 7,125 | 9,056 | 7,125 | 9,056 | |
Assets | |||||
Assets | 125,228 | 138,217 | 125,228 | 138,217 | |
Corporate Services | |||||
Income (loss) from operations [Abstract] | |||||
Income (loss) from operations | (28,572) | (26,125) | (89,706) | (84,049) | |
Depreciation and amortization [Abstract] | |||||
Depreciation and amortization | 1,392 | 1,530 | 4,556 | 4,707 | |
Expenditures for property and equipment [Abstract] | |||||
Expenditures for property and equipment | 824 | 1,125 | 4,157 | 2,032 | |
Property and equipment, net [Abstract] | |||||
Property and equipment, net | 20,233 | 20,098 | 20,233 | 20,098 | |
Assets | |||||
Assets | $ 83,838 | $ 208,399 | $ 83,838 | $ 208,399 |
Operating Segment Information_3
Operating Segment Information - Summary of Company's Revenue by Geographical Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues [Abstract] | ||||
Revenue | $ 329,513 | $ 293,879 | $ 908,396 | $ 801,478 |
United States | ||||
Revenues [Abstract] | ||||
Revenue | 300,609 | 251,054 | 812,802 | 677,658 |
United Kingdom | ||||
Revenues [Abstract] | ||||
Revenue | 23,900 | 36,564 | 78,901 | 105,563 |
Other International Countries | ||||
Revenues [Abstract] | ||||
Revenue | $ 5,004 | $ 6,261 | $ 16,693 | $ 18,257 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |||
Outstanding derivative instruments | $ 0 | $ 0 | $ 0 |
Derivative Instruments - Effect
Derivative Instruments - Effect of Derivative Instruments on the Consolidated Results of Operations and Accumulated other Comprehensive Income (Detail) - Non-Designated Derivatives $ in Thousands | 9 Months Ended | |
Sep. 30, 2018USD ($) | ||
Derivative Instruments Gain Loss [Line Items] | ||
Gains (Losses) Recognized in Income | $ 243 | |
Forward Currency Exchange Contracts | ||
Derivative Instruments Gain Loss [Line Items] | ||
Gains (Losses) Recognized in Income | $ 243 | [1] |
[1] | The gains (losses) on these derivatives substantially offset the (losses) gains on the economically hedged portion of the foreign intercompany balances. |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - Marketing Agency - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Amount expenses incurred to related party | $ 10.5 | $ 8.2 | |
Accounts Payable and Accrued Expenses | |||
Related Party Transaction [Line Items] | |||
Due to related party | $ 4.4 | $ 1.4 | $ 2.5 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Transfer of Liabilities, amount | $ 0 | $ 0 | $ 0 | $ 0 | |
Transfer of assets, amount | 0 | 0 | $ 0 | 0 | |
Maximum | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalent maturity period | 90 days | ||||
Maximum | Short-term Loans | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Term of loan | 12 months | ||||
Maximum | Line of Credit Accounts | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Term of loan | 12 months | ||||
Maximum | Installment Loans and RPAs | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Term of loan | 60 months | ||||
Maximum | RPAs | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Estimated delivery term | 18 months | ||||
Minimum | Installment Loans and RPAs | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Term of loan | 2 months | ||||
Minimum | RPAs | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Estimated delivery term | 6 months | ||||
Fair Value Measurements Nonrecurring Member | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Assets fair value non-recurring | 0 | 0 | $ 0 | 0 | $ 0 |
Liabilities fair value non-recurring | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Assets and Liabilities Measured on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Non-qualified savings plan assets | [1] | $ 2,873 | $ 2,052 | $ 2,214 |
Total | 2,873 | 2,052 | 2,214 | |
Level 1 | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Non-qualified savings plan assets | [1] | 2,873 | 2,052 | 2,214 |
Total | $ 2,873 | $ 2,052 | $ 2,214 | |
[1] | The non-qualified savings plan assets are included in “Other receivables and prepaid expenses” in the Company’s consolidated balance sheets and have an offsetting liability of equal amount, which is included in “Accounts payable and accrued expenses” in the Company’s consolidated balance sheets. |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Not Measured at Fair Value (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Financial liabilities: | |||||||
Liability for estimated losses on consumer loans guaranteed by the Company | $ 1,703 | $ 1,726 | $ 2,166 | $ 2,244 | $ 2,092 | $ 2,258 | |
Carrying Value | |||||||
Financial assets: | |||||||
Cash and cash equivalents | 69,945 | 52,917 | 164,122 | ||||
Short-term loans and line of credit accounts, net | [1] | 291,011 | 222,860 | 230,650 | |||
Installment loans and RPAs, net | [1],[2] | 710,143 | 637,086 | 608,133 | |||
Restricted cash | [3] | 20,719 | 24,342 | 20,897 | |||
Investment in unconsolidated investee | [4] | 6,703 | 6,703 | 6,703 | |||
Total | 1,098,521 | 943,908 | 1,030,505 | ||||
Financial liabilities: | |||||||
Liability for estimated losses on consumer loans guaranteed by the Company | 1,703 | 2,166 | 2,244 | ||||
Revolving line of credit | 25,000 | 22,000 | |||||
Securitization notes | 236,052 | 227,288 | 226,218 | ||||
Total | 887,755 | 876,454 | 969,283 | ||||
Carrying Value | 8.50% Senior Notes Due 2024 | |||||||
Financial liabilities: | |||||||
Senior notes | 250,000 | 250,000 | 250,000 | ||||
Carrying Value | 8.50% Senior Notes Due 2025 | |||||||
Financial liabilities: | |||||||
Senior notes | 375,000 | 375,000 | 375,000 | ||||
Carrying Value | 9.75% Senior Notes Due 2021 | |||||||
Financial liabilities: | |||||||
Senior notes | 115,821 | ||||||
Level 1 | Estimated Fair Value | |||||||
Financial assets: | |||||||
Cash and cash equivalents | 69,945 | 52,917 | 164,122 | ||||
Restricted cash | [3] | 20,719 | 24,342 | 20,897 | |||
Total | 90,664 | 77,259 | 185,019 | ||||
Level 2 | Estimated Fair Value | |||||||
Financial liabilities: | |||||||
Securitization notes | 236,668 | 225,474 | 228,819 | ||||
Total | 815,398 | 744,537 | 974,851 | ||||
Level 2 | Estimated Fair Value | 8.50% Senior Notes Due 2024 | |||||||
Financial liabilities: | |||||||
Senior notes | 235,065 | 212,500 | 253,125 | ||||
Level 2 | Estimated Fair Value | 8.50% Senior Notes Due 2025 | |||||||
Financial liabilities: | |||||||
Senior notes | 343,665 | 306,563 | 371,250 | ||||
Level 2 | Estimated Fair Value | 9.75% Senior Notes Due 2021 | |||||||
Financial liabilities: | |||||||
Senior notes | 121,657 | ||||||
Level 3 | Estimated Fair Value | |||||||
Financial assets: | |||||||
Short-term loans and line of credit accounts, net | [1] | 291,011 | 222,860 | 230,650 | |||
Installment loans and RPAs, net | [1],[2] | 747,496 | 670,888 | 637,880 | |||
Investment in unconsolidated investee | [4] | 6,703 | 6,703 | 6,703 | |||
Total | 1,045,210 | 900,451 | 875,233 | ||||
Financial liabilities: | |||||||
Liability for estimated losses on consumer loans guaranteed by the Company | 1,703 | 2,166 | 2,244 | ||||
Revolving line of credit | 25,000 | 22,000 | |||||
Total | $ 26,703 | $ 24,166 | $ 2,244 | ||||
[1] | Short-term loans, line of credit accounts, installment loans and RPAs are included in “Loans and finance receivables, net” in the consolidated balance sheets. | ||||||
[2] | Installment loan and RPAs, net include $340.0 million, $291.7 million and $319.0 million in net assets of consolidated VIEs as of September 30, 2019 and 2018 and December 31, 2018, respectively. | ||||||
[3] | Restricted cash includes $18.6 million, $18.7 million and $22.2 million in assets of consolidated VIEs as of September 30, 2019 and 2018 and December 31, 2018, respectively. | ||||||
[4] | Investment in unconsolidated investee is included in “Other assets” in the consolidated balance sheets. |
Fair Value Measurements - Fin_2
Fair Value Measurements - Financial Assets and Liabilities Not Measured at Fair Value (Parenthetical) (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Sep. 19, 2018 | Sep. 01, 2017 | May 30, 2014 | |
Variable Interest Entity, Primary Beneficiary | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Installment loans and RPAs, net | $ 340 | $ 291.7 | $ 319 | |||
Restricted cash | $ 18.6 | $ 18.7 | $ 22.2 | |||
8.50% Senior Notes Due 2024 | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Debt instrument, interest rate | 8.50% | 8.50% | 8.50% | 8.50% | ||
Debt instrument, maturity date | Sep. 1, 2024 | Sep. 1, 2024 | Sep. 1, 2024 | |||
8.50% Senior Notes Due 2025 | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Debt instrument, interest rate | 8.50% | 8.50% | 8.50% | 8.50% | ||
Debt instrument, maturity date | Sep. 15, 2025 | Sep. 15, 2025 | Sep. 15, 2025 | |||
9.75% Senior Notes Due 2021 | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Debt instrument, interest rate | 9.75% | 9.75% | 9.75% | |||
Debt instrument, maturity date | Jun. 1, 2021 | Jun. 1, 2021 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | Oct. 17, 2019 | Jan. 17, 2020 | Oct. 24, 2019 |
2019-A Notes | Forecast | |||
Subsequent Event [Line Items] | |||
Sale of additional securitization receivables | $ 22,200,000 | ||
Subsequent Event | United Kingdom | |||
Subsequent Event [Line Items] | |||
Lending activities, expected one-time exit charge, after tax | $ 74,000,000 | ||
Lending activities, expected one-time exit cash charges | $ 43,000,000 | ||
Subsequent Event | 2019-A Notes | |||
Subsequent Event [Line Items] | |||
Sale of securitization receivables | $ 200,000,000 | ||
Subsequent Event | 2019-A Notes | Class A Notes | |||
Subsequent Event [Line Items] | |||
Debt instrument, face amount | $ 138,888,000 | ||
Debt instrument, interest rate | 3.96% | ||
Subsequent Event | 2019-A Notes | Class B Notes | |||
Subsequent Event [Line Items] | |||
Debt instrument, face amount | $ 44,445,000 | ||
Debt instrument, interest rate | 6.17% | ||
Subsequent Event | 2019-A Notes | Class C Notes | |||
Subsequent Event [Line Items] | |||
Debt instrument, face amount | $ 16,667,000 | ||
Debt instrument, interest rate | 7.62% |