DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 3 Months Ended | |
Mar. 31, 2019 | May 03, 2019 | |
DOCUMENT AND ENTITY INFORMATION [Abstract] | ||
Entity Registrant Name | CURO GROUP HOLDINGS CORP. | |
Entity Central Index Key | 0001711291 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity common stock shares outstanding (in shares) | 46,442,628 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash | $ 82,859 | $ 61,175 |
Restricted cash (includes restricted cash of consolidated VIEs of $15,460 and $12,840 as of March 31, 2019 and December 31, 2018, respectively) | 34,319 | 25,439 |
Gross loans receivable (includes loans of consolidated VIEs of $180,631 and $148,876 as of March 31, 2019 and December 31, 2018, respectively) | 553,215 | 571,531 |
Less: allowance for loan losses (includes allowance for losses of consolidated VIEs of $22,764 and $12,688 as of March 31, 2019 and December 31, 2018, respectively) | (94,322) | (73,997) |
Loans receivable, net | 458,893 | 497,534 |
Right of use asset - operating leases (Note 1) | 135,405 | |
Deferred income taxes | 5,014 | 1,534 |
Income taxes receivable | 40,872 | 16,741 |
Prepaid expenses and other | 36,511 | 43,588 |
Property and equipment, net | 75,260 | 76,750 |
Goodwill | 119,878 | 119,281 |
Other intangibles, net of accumulated amortization of $35,662 and $34,576 as of March 31, 2019 and December 31, 2018, respectively | 29,968 | 29,784 |
Other | 15,151 | 12,930 |
Assets from discontinued operations (Note 15) | 0 | 34,861 |
Total Assets | 1,034,130 | 919,617 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable and accrued liabilities | 52,042 | 49,146 |
Deferred revenue | 7,851 | 9,483 |
Lease liability - operating leases (Note 1) | 143,412 | |
Income taxes payable | 4,425 | 1,579 |
Accrued interest (includes accrued interest of consolidated VIEs of $848 and $831 as of March 31, 2019 and December 31, 2018, respectively) | 5,593 | 20,904 |
Liability for losses on CSO lender-owned consumer loans | 8,662 | 12,007 |
Deferred rent | 10,851 | |
Long-term debt (includes long-term debt and issuance costs of consolidated VIEs of $92,718 and $3,803 as of March 31, 2019 and $111,335 and $3,856 as of December 31, 2018, respectively) | 766,068 | 804,140 |
Subordinated stockholder debt | 2,243 | 2,196 |
Other long-term liabilities | 6,686 | 5,800 |
Deferred tax liabilities | 404 | 13,730 |
Liabilities from discontinued operations (Note 15) | 0 | 8,882 |
Total Liabilities | 997,386 | 938,718 |
Commitments and contingencies (Note 13) | ||
Stockholders' Equity | ||
Preferred stock - $0.001 par value, 25,000,000 shares authorized; no shares were issued at either period end | 0 | 0 |
Common Stock - $0.001 par value; 225,000,000 shares authorized; 46,431,289 and 46,412,231 issued and outstanding as of March 31, 2019 and December 31, 2018, respectively | 9 | 9 |
Paid-in capital | 62,117 | 60,015 |
Retained earnings (accumulated deficit) | 18,983 | (18,065) |
Accumulated other comprehensive loss | (44,365) | (61,060) |
Total Stockholders' Equity | 36,744 | (19,101) |
Total Liabilities and Stockholders' Equity | $ 1,034,130 | $ 919,617 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Restricted cash | $ 34,319 | $ 25,439 |
Total gross loans receivable | 553,215 | 571,531 |
Allowance for losses | 94,322 | 73,997 |
Accrued interest | 5,593 | 20,904 |
Long-term debt (excluding current maturities) | 766,068 | 804,140 |
Other intangibles accumulated amortization | $ 35,662 | $ 34,576 |
Preferred stock par value (in usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred shares issued (in shares) | 0 | 0 |
Class A common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Class A common stock, authorized (in shares) | 225,000,000 | 225,000,000 |
Class A common stock, issued (in shares) | 46,431,289 | 46,412,231 |
Class A common stock, outstanding (in shares) | 46,431,289 | 46,412,231 |
Variable Interest Entity | ||
Accrued interest | $ 848 | $ 831 |
Restricted cash | 15,460 | 12,840 |
Restricted cash | 12,840 | |
Total gross loans receivable | 180,631 | 148,876 |
Allowance for losses | 22,764 | 12,688 |
Accrued interest | 831 | |
Long-term debt (excluding current maturities) | 92,718 | 111,335 |
Issuance costs | $ 3,803 | $ 3,856 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Revenue | $ 277,939 | $ 250,843 |
Provision for losses | 102,385 | 76,883 |
Net revenue | 175,554 | 173,960 |
Cost of providing services | ||
Salaries and benefits | 28,701 | 26,918 |
Occupancy | 14,237 | 13,427 |
Office | 5,113 | 6,453 |
Other costs of providing services | 14,220 | 13,431 |
Advertising | 7,786 | 7,885 |
Total cost of providing services | 70,057 | 68,114 |
Gross margin | 105,497 | 105,846 |
Operating expense | ||
Corporate, district and other expenses | 49,088 | 35,429 |
Interest expense | 17,690 | 22,354 |
Loss on extinguishment of debt | 0 | 11,683 |
Total operating expense | 66,778 | 69,466 |
Income from continuing operations before income taxes | 38,719 | 36,380 |
Provision for income taxes | 10,046 | 11,467 |
Net income from continuing operations | 28,673 | 24,913 |
Net income (loss) from discontinued operations | 8,375 | (1,621) |
Net income | $ 37,048 | $ 23,292 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 46,424 | 45,506 |
Diluted (in shares) | 47,319 | 47,416 |
Basic income (loss) per share: | ||
Continuing operations (in dollars per share) | $ 0.62 | $ 0.55 |
Discontinued operations (in dollars per share) | 0.18 | (0.04) |
Basic earnings per share (in dollars per share) | 0.80 | 0.51 |
Diluted income (loss) per share: | ||
Continuing operations (in dollars per share) | 0.61 | 0.53 |
Discontinued operations (in dollars per share) | 0.18 | (0.03) |
Diluted earnings per share (in dollars per share) | $ 0.79 | $ 0.50 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 37,048 | $ 23,292 |
Other comprehensive income (loss): | ||
Cash flow hedges, net of $0 tax in both periods | 0 | |
Cash flow hedges, net of $0 tax in both periods | 54 | |
Foreign currency translation adjustment, net of $0 tax in both periods | 16,695 | (2,910) |
Other comprehensive income (loss) | 16,695 | (2,856) |
Comprehensive income | $ 53,743 | $ 20,436 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Cash flow hedges, tax effect | $ 0 | |
Cash flow hedges, tax effect | $ 0 | |
Foreign currency translation adjustment, tax effect | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Cash flows from operating activities | |||
Net income from continuing operations | $ 28,673 | $ 24,913 | |
Adjustments to reconcile net income to net cash provided by continuing operating activities: | |||
Depreciation and amortization | 4,920 | 4,535 | |
Provision for losses | 102,385 | 76,883 | |
Amortization of debt issuance costs and bond (premium)/discount | 872 | 1,129 | |
Deferred income tax benefit | (10,343) | (1,094) | |
Loss on disposal of property and equipment | 991 | 478 | |
Loss on extinguishment of debt | 0 | 11,683 | |
Increase in cash surrender value of life insurance | (723) | (1,482) | |
Share-based compensation expense | 2,172 | 1,842 | |
Changes in operating assets and liabilities: | |||
Fees and service charges on loans receivable | 1,937 | 5,093 | |
Prepaid expenses and other assets | 9,938 | 9,820 | |
Other assets | (5,651) | (39) | |
Accounts payable and accrued liabilities | 2,326 | (3,172) | |
Deferred revenue | (1,709) | (1,709) | |
Income taxes payable | 29,562 | 19,629 | |
Income taxes receivable | (9,890) | (7,411) | |
Deferred rent | 0 | 280 | |
Accrued Interest | (15,329) | (19,084) | |
Other liabilities | 868 | 449 | |
Net cash provided by continuing operating activities | 140,999 | 122,743 | |
Net cash (used in) provided by discontinued operating activities | (504) | 1,411 | |
Net cash provided by operating activities | 140,495 | 124,154 | |
Cash flows from investing activities | |||
Purchase of property, equipment and software | (3,119) | (1,542) | |
Loans receivable originated or acquired | (420,568) | (500,501) | |
Loans receivable repaid | 355,621 | 444,148 | |
Investments in Cognical Holdings | (1,568) | (958) | |
Net cash used in continuing investing activities | (69,634) | (58,853) | |
Net cash used in discontinued investing activities | (14,213) | (3,782) | |
Net cash used in investing activities | (83,847) | (62,635) | |
Cash flows from financing activities | |||
Net proceeds from issuance of common stock | 0 | 13,135 | |
Payments on 12.00% Senior Secured Notes | (77,500) | ||
Debt issuance costs paid | (199) | (71) | |
Proceeds from exercise of stock options | 40 | 0 | |
Payments to net share settle restricted stock units vesting | (37) | 0 | |
Net cash used in financing activities | [1] | (41,265) | (83,255) |
Effect of exchange rate changes on cash and restricted cash | 1,938 | (4,360) | |
Net increase (decrease) in cash and restricted cash | 17,321 | (26,096) | |
Cash and restricted cash at beginning of period | 99,857 | 174,491 | |
Cash and restricted cash at end of period | 117,178 | 148,395 | |
Non-Recourse Canada SPV Facility | |||
Cash flows from financing activities | |||
Proceeds from credit facilities | 3,762 | ||
Payments on credit facilities | (24,831) | 0 | |
12% Senior Secured Notes | |||
Cash flows from financing activities | |||
Payments on 12.00% Senior Secured Notes | 0 | (77,500) | |
Senior Revolver | |||
Cash flows from financing activities | |||
Proceeds from credit facilities | 30,478 | ||
Payments on credit facilities | (50,478) | ||
Revolving Credit Facility | Non-Recourse U.S. SPV Facility | |||
Cash flows from financing activities | |||
Proceeds from credit facilities | 0 | 3,000 | |
Payments on credit facilities | 0 | (12,519) | |
Revolving Credit Facility | Non-Recourse Canada SPV Facility | |||
Cash flows from financing activities | |||
Proceeds from credit facilities | 3,762 | 0 | |
Revolving Credit Facility | Senior Revolver | Line of Credit | |||
Cash flows from financing activities | |||
Proceeds from credit facilities | 30,478 | 10,000 | |
Payments on credit facilities | $ (50,478) | $ (10,000) | |
[1] | (1) Financing activities include continuing operations only and were not impacted by discontinued operations |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - 12% Senior Secured Notes | Mar. 31, 2019 | Nov. 30, 2017 | Feb. 28, 2017 |
Stated interest rate (as percent) | 12.00% | ||
Senior Notes | |||
Stated interest rate (as percent) | 12.00% | 12.00% |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS Basis of Presentation The terms “CURO" and the “Company” refer to CURO Group Holdings Corp. and its directly and indirectly owned subsidiaries as a combined entity, except where otherwise stated. The term "CFTC" refers to CURO Financial Technologies Corp., a wholly-owned subsidiary, and its directly and indirectly owned subsidiaries as a consolidated entity, except where otherwise stated. The Company has prepared the accompanying unaudited Condensed Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (“US GAAP”), and with the accounting policies described in its Annual Report on Form 10-K for the year ended December 31, 2018 ("2018 Form 10-K"). Certain information and note disclosures normally included in annual financial statements prepared in accordance with US GAAP have been condensed or omitted, although the Company believes that the disclosures are adequate to enable a reasonable understanding of the information presented. The unaudited Condensed Consolidated Financial Statements and the accompanying notes reflect all adjustments, which are, in the opinion of management, necessary to present fairly the Company's results of operations, financial position and cash flows for the periods presented. On February 25, 2019, the Company's U.K. segment was placed into administration, which resulted in treatment of the segment as discontinued operations for all periods presented. Throughout this Quarterly Report on Form 10-Q ("Form 10-Q"), current and prior period financial information is presented as if the U.K. segment was excluded from continuing operations. For further information about the placement of the segment into administration, refer to "--Nature of Operations" below. The Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related Notes included in the 2018 Form 10-K. Interim results of operations are not necessarily indicative of results that may be expected for future interim periods or for the year ending December 31, 2019 . Principles of Consolidation The Condensed Consolidated Financial Statements include the accounts of CURO and its wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of Condensed Consolidated Financial Statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of revenues and expenses during the periods reported. Some of the significant estimates that the Company made in the accompanying Condensed Consolidated Financial Statements include allowances for loan losses, certain assumptions related to goodwill and intangibles, accruals related to self-insurance, credit services organization ("CSO") liability for losses and estimated tax liabilities. Actual results may differ from those estimates. Nature of Operations CURO is a growth-oriented, technology-enabled, highly-diversified consumer finance company serving a wide range of underbanked consumers in the United States ("U.S."), Canada, and, through February 25, 2019, the United Kingdom ("U.K."). U.K. Segment Placed into Administration On February 25, 2019, the Company announced that a proposed Scheme of Arrangement ("SOA"), as described in the Company's Current Report on Form 8-K filed January 31, 2019, would not be implemented. In accordance with the provisions of the U.K. Insolvency Act 1986 and as approved by the boards of directors of the Company’s U.K. subsidiaries, Curo Transatlantic Limited and SRC Transatlantic Limited (collectively, “the U.K. Subsidiaries”), insolvency practitioners from KPMG were appointed as administrators (“Administrators”) for the U.K. Subsidiaries. The effect of the U.K. Subsidiaries’ entry into administration was to place their management, affairs, business and property under the direct control of the Administrators. Accordingly, the Company deconsolidated the U.K. Subsidiaries as of February 25, 2019 and presented the U.K. Subsidiaries as Discontinued Operations for all periods presented in this Form 10-Q. Open-End Loss Recognition Effective January 1, 2019, the Company modified the timeframe for which it charges-off Open-End loans and made related refinements to its loss provisioning methodology. Prior to January 1, 2019, the Company deemed Open-End loans uncollectible and charged-off when a customer missed a scheduled payment, at which point the loan was considered past-due. Because of the continuing shift to Open-End loans in Canada and analysis of payment patterns on early-stage versus late-stage delinquencies, the Company revised its estimates and now consider Open-End loans uncollectible when the loan has been contractually past-due for 90 consecutive days. Consequently, past-due Open-End loans and related accrued interest now remain in loans receivable for 90 days before being charged-off against the allowance for loan losses. All recoveries on charged-off loans are credited to the allowance for loan losses when received. The Company evaluates the adequacy of the allowance for loan losses compared to the related gross loans receivable balances that include accrued interest. The aforementioned change was treated as a change in accounting estimate and applied prospectively effective January 1, 2019. The change affects comparability to prior periods as follows: • Gross combined loans receivable: balances as of March 31, 2019 include $32.4 million of Open-End loans that are up to 90 days past-due with related accrued interest, while such balances for prior periods do not include any past-due loans. • Revenues: for the quarter ended March 31, 2019, revenues include accrued interest on past-due loan balances of $8.9 million , while revenues in prior periods do not include comparable amounts. • Provision for Losses : effective January 1, 2019, past-due, unpaid balances plus related accrued interest charge off on day 91. Provision expense is affected by total charge-offs less total recoveries ("NCOs") plus changes to the required allowance for loan losses. Because NCOs now include unpaid principal and up to 90 days of related accrued interest, as compared to prior periods, NCO amounts and rates are higher and the required Open-End Allowance for loan losses as a percentage of Open-End gross loans receivable is higher. The Open-End Allowance for loan losses as a percentage of Open-End gross loans receivable rose from 9.6% as of December 31, 2018, to 19.5% as of March 31, 2019. Correction of an Immaterial Error in Previously-Issued Financial Statements During the year ended December 31, 2018, the Company corrected immaterial errors to its prior presentation of cash flows for loan originations and collections on principal. The Company determined that the historical presentation was in error by not conforming to US GAAP because it included outflows for loan originations and receipts on collections in Cash provided by operating activities rather than in Cash used in investing activities. Accordingly the Company corrected previously-filed financial statements by reclassifying cash outflows for loan originations and receipts on collections of principal of $56.4 million from net Cash provided by operating activities to net Cash used in investing activities for the three months ended March 31, 2018. Total cash flows for each period presented did not change. The Company concluded that the errors were immaterial to the unaudited Condensed Consolidated Financial Statements included in the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2018. The Company has revised its Condensed Consolidated Financial Statements for the three months ended March 31, 2018 presented in this Form 10-Q. A summary of the correction follows: (dollars in thousands) Three Months Ended March 31, 2018 As Reported: (1) Net cash provided by continuing operating activities $ 66,390 Net cash used in continuing investing activities (2,500 ) As Corrected: Net cash provided by continuing operating activities 122,743 Net cash used in continuing investing activities (58,853 ) (1) "As reported" balances include amounts from continuing operations historically presented within these captions. Recently Adopted Accounting Pronouncements ASU 2016-02 In February 2016, the Financial Accounting Standards Board ("FASB") established Topic 842, Leases, by issuing ASU No. 2016-02, which requires lessees to recognize leases on the balance sheet and disclose key information about leasing arrangements. The Company adopted ASU 2016-02 as of January 1, 2019, using the modified retrospective approach, which provides a method for recording existing leases at adoption and in comparative periods that approximates the results of a full retrospective approach. Adoption of the new standard resulted in the recording of right of use assets ("ROU assets") and additional operating lease liabilities ("lease liabilities") of $135.4 million and $143.4 million , respectively, as of March 31, 2019. Prepaid rent of $2.7 million and deferred liability of $10.9 million were included in ROU assets and lease liabilities, respectively. The standard did not materially impact the Company's consolidated net earnings. See Note 14 - "Leases" for additional information and disclosures required by Topic 842. ASU 2018-12 In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive income ("ASU 2018-02"), which permits the reclassification to retained earnings of disproportionate tax effects in accumulated other comprehensive income (loss) caused by the Tax Cuts and Jobs Act of 2017 ("2017 Tax Act"). The Company adopted ASU 2018-02 as of January 1, 2019, which did not have a material impact on the Condensed Consolidated Financial Statements. SEC Disclosure Update In the third quarter of 2018, the U.S. Securities and Exchange Commission ("SEC") adopted final rules under SEC Release No. 33-10532, Disclosure Update and Simplification , amending certain disclosure requirements that had become redundant, duplicative, overlapping, outdated or superseded. Other than the amendment's expanded disclosure requirement for interim financial statements to disclose both current and comparative quarter and year-to-date reconciliations of changes in stockholders' equity, it did not have a material impact on the Company's Condensed Consolidated Financial Statements or Notes thereto for the three months ended March 31, 2019 , nor is it expected to have a material impact on the Company's annual disclosures or financial statements. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES In August 2018, the Company closed on the Non-Recourse Canada SPV facility, whereby certain loan receivables were sold to wholly-owned, bankruptcy-remote special purposes subsidiaries ("VIEs") to collateralize debt incurred under the facility. As the Company is the primary beneficiary of the VIEs, the Company includes the assets and liabilities related to the VIEs in its Condensed Consolidated Financial Statements. As required, the Company parenthetically discloses on the Consolidated Balance Sheets the VIEs’ assets that can only be used to settle the VIEs' obligations and liabilities if the VIEs’ creditors have no recourse against the Company's general credit. The carrying amounts of consolidated VIEs' assets and liabilities associated with the VIE subsidiaries were as follows: (in thousands) March 31, 2019 December 31, 2018 Assets Restricted cash $ 15,460 $ 12,840 Gross loans receivable less allowance for loan losses 157,867 136,187 Total Assets $ 173,327 $ 149,027 Liabilities Accounts payable and accrued liabilities $ 9,717 $ 4,980 Deferred revenue 44 40 Accrued interest 848 831 Long-term debt 88,915 107,479 Total Liabilities $ 99,524 $ 113,330 |
LOANS RECEIVABLE AND REVENUE
LOANS RECEIVABLE AND REVENUE | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
LOANS RECEIVABLE AND REVENUE | LOANS RECEIVABLE AND REVENUE The following table summarizes revenue by product for the periods indicated: Three Months Ended March 31, (in thousands) 2019 2018 Unsecured Installment $ 135,778 $ 125,379 Secured Installment 27,477 26,856 Open-End 52,869 27,223 Single-Pay 46,761 60,357 Ancillary 15,054 11,028 Total revenue $ 277,939 $ 250,843 The following tables summarize Loans receivable by product and the related delinquent loans receivable at March 31, 2019: March 31, 2019 (in thousands) Single-Pay Unsecured Installment Secured Installment Open-End Total Current loans receivable $ 69,753 $ 120,915 $ 67,375 $ 208,346 $ 466,389 Delinquent loans receivable — 40,801 13,581 32,444 86,826 Total loans receivable 69,753 161,716 80,956 240,790 553,215 Less: allowance for losses (3,897 ) (33,666 ) (9,796 ) (46,963 ) (94,322 ) Loans receivable, net $ 65,856 $ 128,050 $ 71,160 $ 193,827 $ 458,893 March 31, 2019 (in thousands) Unsecured Installment Secured Installment Open-End Total Delinquent loans receivable 0-30 days past due $ 13,455 $ 6,001 $ 12,423 $ 31,879 31-60 days past due 11,757 3,555 9,432 24,744 61-90 days past due 15,589 4,025 10,589 30,203 Total delinquent loans receivable $ 40,801 $ 13,581 $ 32,444 $ 86,826 The following tables summarize Loans receivable by product and the related delinquent loans receivable at December 31, 2018: December 31, 2018 (in thousands) Single-Pay Unsecured Installment Secured Installment Open-End Total Current loans receivable $ 80,823 $ 141,316 $ 75,583 $ 207,333 $ 505,055 Delinquent loans receivable — 49,087 17,389 — 66,476 Total loans receivable 80,823 190,403 92,972 207,333 571,531 Less: allowance for losses (4,189 ) (37,716 ) (12,191 ) (19,901 ) (73,997 ) Loans receivable, net $ 76,634 $ 152,687 $ 80,781 $ 187,432 $ 497,534 December 31, 2018 (in thousands) Unsecured Installment Secured Installment Total Delinquent loans receivable 0-30 days past due $ 17,850 $ 7,870 $ 25,720 31-60 days past due 14,705 4,725 19,430 61-90 days past due 16,532 4,794 21,326 Total delinquent loans receivable $ 49,087 $ 17,389 $ 66,476 The following tables summarize loans guaranteed by the Company under CSO programs and the related delinquent receivables at March 31, 2019: March 31, 2019 (in thousands) Unsecured Installment Secured Installment Total Current loans receivable guaranteed by the Company $ 51,773 $ 1,847 $ 53,620 Delinquent loans receivable guaranteed by the Company 7,967 284 8,251 Total loans receivable guaranteed by the Company 59,740 2,131 61,871 Less: Liability for losses on CSO lender-owned consumer loans (8,584 ) (78 ) (8,662 ) Loans receivable guaranteed by the Company, net $ 51,156 $ 2,053 $ 53,209 March 31, 2019 (in thousands) Unsecured Installment Secured Installment Total Delinquent loans receivable 0-30 days past due $ 6,388 $ 228 $ 6,616 31-60 days past due 926 33 959 61-90 days past due 653 23 676 Total delinquent loans receivable $ 7,967 $ 284 $ 8,251 The following tables summarize loans guaranteed by the Company under CSO programs and the related delinquent receivables at December 31, 2018: December 31, 2018 (in thousands) Unsecured Installment Secured Installment Total Current loans receivable guaranteed by the Company $ 65,743 $ 2,504 $ 68,247 Delinquent loans receivable guaranteed by the Company 11,708 446 12,154 Total loans receivable guaranteed by the Company 77,451 2,950 80,401 Less: Liability for losses on CSO lender-owned consumer loans (11,582 ) (425 ) (12,007 ) Loans receivable guaranteed by the Company, net $ 65,869 $ 2,525 $ 68,394 December 31, 2018 (in thousands) Unsecured Installment Secured Installment Total Delinquent loans receivable 0-30 days past due $ 9,684 $ 369 $ 10,053 31-60 days past due 1,255 48 1,303 61-90 days past due 769 29 798 Total delinquent loans receivable $ 11,708 $ 446 $ 12,154 The following table summarizes activity in the allowance for loan losses during the three months ended March 31, 2019 : Three Months Ended March 31, 2019 (in thousands) Single-Pay Unsecured Installment Secured Installment Open-End Other Total Balance, beginning of period $ 4,189 $ 37,716 $ 12,191 $ 19,901 $ — $ 73,997 Charge-offs (36,521 ) (44,237 ) (12,671 ) (3,638 ) (1,351 ) (98,418 ) Recoveries 27,911 6,318 3,123 5,159 898 43,409 Net charge-offs (8,610 ) (37,919 ) (9,548 ) 1,521 (453 ) (55,009 ) Provision for losses 8,268 33,845 7,153 25,317 453 75,036 Effect of foreign currency translation 50 24 — 224 — 298 Balance, end of period $ 3,897 $ 33,666 $ 9,796 $ 46,963 $ — $ 94,322 Allowance for loan losses as a percentage of gross loan receivables 5.6 % 20.8 % 12.1 % 19.5 % N/A 17.0 % The following table summarizes activity in the liability for losses on CSO lender-owned consumer loans during the three months ended March 31, 2019 : Three Months Ended (in thousands) Unsecured Installment Secured Installment Total Balance, beginning of period $ 11,582 $ 425 $ 12,007 Charge-offs (40,980 ) (1,076 ) (42,056 ) Recoveries 10,560 802 11,362 Net charge-offs (30,420 ) (274 ) (30,694 ) Provision for losses 27,422 (73 ) 27,349 Balance, end of period $ 8,584 $ 78 $ 8,662 The following table summarizes activity in the allowance for loan losses and the liability for losses on CSO lender-owned consumer loans, in total, during the three months ended March 31, 2019 : Three Months Ended March 31, 2019 (in thousands) Single-Pay Unsecured Installment Secured Installment Open-End Other Total Balance, beginning of period $ 4,189 $ 49,298 $ 12,616 $ 19,901 $ — $ 86,004 Charge-offs (36,521 ) (85,217 ) (13,747 ) (3,638 ) (1,351 ) (140,474 ) Recoveries 27,911 16,878 3,925 5,159 898 54,771 Net charge-offs (8,610 ) (68,339 ) (9,822 ) 1,521 (453 ) (85,703 ) Provision for losses 8,268 61,267 7,080 25,317 453 102,385 Effect of foreign currency translation 50 24 — 224 — 298 Balance, end of period $ 3,897 $ 42,250 $ 9,874 $ 46,963 $ — $ 102,984 The following table summarizes activity in the allowance for loan losses during the three months ended March 31, 2018 : Three Months Ended March 31, 2018 (in thousands) Single-Pay Unsecured Installment Secured Installment Open-End Other Total Balance, beginning of period $ 5,204 $ 38,977 $ 13,472 $ 6,426 $ — $ 64,079 Charge-offs (44,336 ) (35,219 ) (11,485 ) (20,349 ) (667 ) (112,056 ) Recoveries 32,818 5,218 2,866 9,377 39 50,318 Net charge-offs (11,518 ) (30,001 ) (8,619 ) (10,972 ) (628 ) (61,738 ) Provision for losses 9,892 24,739 6,786 11,428 628 53,473 Effect of foreign currency translation (64 ) (77 ) — (36 ) — (177 ) Balance, end of period $ 3,514 $ 33,638 $ 11,639 $ 6,846 $ — $ 55,637 Allowance for loan losses as a percentage of gross loan receivables 5.7 % 25.8 % 16.6 % 15.2 % N/A 18.1 % The following table summarizes activity in the liability for losses on CSO lender-owned consumer loans during the three months ended March 31, 2018 : Three Months Ended March 31, 2018 (in thousands) Unsecured Installment Secured Installment Total Balance, beginning of period $ 17,073 $ 722 $ 17,795 Charge-offs (41,719 ) (1,219 ) (42,938 ) Recoveries 10,976 1,169 12,145 Net charge-offs (30,743 ) (50 ) (30,793 ) Provision for losses 23,556 (146 ) 23,410 Balance, end of period $ 9,886 $ 526 $ 10,412 The following table summarizes activity in the allowance for loan losses and the liability for losses on CSO lender-owned consumer loans, in total, during the three months ended March 31, 2018 : Three Months Ended March 31, 2018 (in thousands) Single-Pay Unsecured Installment Secured Installment Open-End Other Total Balance, beginning of period $ 5,204 $ 56,050 $ 14,194 $ 6,426 $ — $ 81,874 Charge-offs (44,336 ) (76,938 ) (12,704 ) (20,349 ) (667 ) (154,994 ) Recoveries 32,818 16,194 4,035 9,377 39 62,463 Net charge-offs (11,518 ) (60,744 ) (8,669 ) (10,972 ) (628 ) (92,531 ) Provision for losses 9,892 48,295 6,640 11,428 628 76,883 Effect of foreign currency translation (64 ) (77 ) — (36 ) — (177 ) Balance, end of period $ 3,514 $ 43,524 $ 12,165 $ 6,846 $ — $ 66,049 |
CREDIT SERVICES ORGANIZATION
CREDIT SERVICES ORGANIZATION | 3 Months Ended |
Mar. 31, 2019 | |
Guarantees [Abstract] | |
CREDIT SERVICES ORGANIZATION | CREDIT SERVICES ORGANIZATION The CSO fee receivable amounts under CSO programs were $11.0 million and $14.3 million at March 31, 2019 and December 31, 2018 , respectively. The Company bears the risk of loss through its guarantee to purchase specific customer loans that are in default from the lenders. The terms of these loans range from six to 18 months. See the 2018 Form 10-K for further details of the Company's accounting policy. As of March 31, 2019 and December 31, 2018 , the maximum amount payable under all such guarantees was $51.6 million and $66.9 million , respectively. If the Company is required to pay any portion of the total amount of the loans it has guaranteed, it will attempt to recover some or the entire amount from the applicable customers. The Company holds no collateral in respect of the guarantees. The Company estimates a liability for losses associated with the guaranty provided to the CSO lenders using assumptions and methodologies similar to the Allowance for loan losses, which it recognizes for its consumer loans. Liability for incurred losses on CSO loans Guaranteed by the Company was $8.7 million and $12.0 million at March 31, 2019 and December 31, 2018 , respectively. The Company placed $13.5 million and $17.2 million in collateral accounts for the benefit of lenders at March 31, 2019 and December 31, 2018 , respectively, which is reflected in "Prepaid expenses and other" in the Condensed Consolidated Balance Sheets. The balances required to be maintained in these collateral accounts vary by lender, typically based on a percentage of the outstanding loan balances held by the lender. The percentage of outstanding loan balances required for collateral is negotiated between the Company and each such lender. |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt consisted of the following: (in thousands) March 31, 2019 December 31, 2018 8.25% Senior Secured Notes (due 2025) $ 677,153 $ 676,661 Non-Recourse Canada SPV Facility 88,915 107,479 Senior Revolver — 20,000 Long-term debt $ 766,068 $ 804,140 8.25% Senior Secured Notes In August 2018, the Company issued 8.25% Senior Secured Notes which mature on September 1, 2025 (" 8.25% Senior Secured Notes"). Interest on the notes is payable semiannually, in arrears, on March 1 and September 1. In connection with the 8.25% Senior Secured Notes, the balance of capitalized financing costs of approximately $12.8 million , net of amortization, is included in the Condensed Consolidated Balance Sheets as a component of "Long-term debt." These costs are amortized over the term of the 8.25% Senior Secured Notes as a component of interest expense. The proceeds of this issuance were used (i) to redeem the outstanding 12.00% Senior Secured Notes of CFTC, (ii) to repay the outstanding indebtedness under the five -year revolving credit facility of CURO Receivables Finance I, LLC, a wholly-owned subsidiary ("CURO Receivables"), which consisted of a term loan and revolving borrowing capacity, (iii) for general corporate purposes and (iv) to pay fees, expenses, premiums and accrued interest in connection therewith. As of March 31, 2019 and December 31, 2018, the Company was in full compliance with the covenants and other provisions of the 8.25% Senior Secured Notes. 12.00% Senior Secured Notes In February and November 2017, CFTC issued $470.0 million and $135.0 million , respectively, of 12.00% Senior Secured Notes due March 1, 2022. In connection with these 12.00% Senior Secured Notes, the Company capitalized financing costs, of approximately $18.3 million . These costs were being amortized over the term of the 12.00% Senior Secured Notes as a component of interest expense. On March 7, 2018, CFTC redeemed $77.5 million of its 12.00% Senior Secured Notes using a portion of the proceeds from the Company's initial public offering as required by the underlying indenture (the transaction whereby the 12.00% Senior Secured Notes were partially redeemed, the “Redemption”), at a price equal to 112.00% of the principal amount of the 12.00% Senior Secured Notes redeemed, plus accrued and unpaid interest paid thereon, to the date of Redemption. The Redemption price and the amortization of a corresponding portion of the capitalized financing costs resulted in a loss on Redemption of $11.7 million for the three months ended March 31, 2018. Following the Redemption, $527.5 million of the original outstanding principal amount of the 12.00% Senior Secured Notes remained outstanding. The Redemption was conducted pursuant to the Indenture governing the 12.00% Senior Secured Notes (the “Indenture”), dated as of February 15, 2017, by and among CFTC, the guarantors party thereto and TMI Trust Company, as trustee and collateral agent. The remainder of the 12.00% Senior Secured Notes were extinguished effective September 7, 2018 using proceeds from the 8.25% Senior Secured Notes as described above. The extinguishment of the 12.00% Senior Secured Notes resulted in a pretax loss of $69.2 million during the year ended December 31, 2018. Non-Recourse Canada SPV Facility On August 2, 2018, CURO Canada Receivables Limited Partnership, a newly created, bankruptcy-remote special purpose vehicle (the "Canada SPV Borrower") and a wholly-owned subsidiary, entered into a four -year revolving credit facility with Waterfall Asset Management, LLC that provides for C$175.0 million of initial borrowing capacity and the ability to expand such capacity up to C$250.0 million ("Non-Recourse Canada SPV Facility"). The loans bear interest at an annual rate of 6.75% plus the three-month CDOR. The Canada SPV Borrower also pays a 0.50% per annum commitment fee on the unused portion of the commitments. In April 2019, the facility's maturity date was extended one year and now matures in 2023. As of March 31, 2019 , the Canada SPV Borrower was in full compliance with the covenants and other provisions of the Non-Recourse Canada SPV Facility. As of March 31, 2019 , outstanding borrowings under the Non-Recourse Canada SPV Facility were $88.9 million . For further information on the Non-Recourse Canada SPV, refer to Note 2, "Variable Interest Entities." Non-Recourse U.S. SPV Facility In November 2016, CURO Receivables and a wholly-owned subsidiary, entered into a five -year revolving credit facility with Victory Park Management, LLC and certain other lenders that provides for an $80.0 million term loan and $70.0 million revolving borrowing capacity that can expand over time (collectively, “Non-Recourse U.S. SPV Facility”). Borrowings under this facility bear interest at an annual rate of up to 12.00% plus the greater of (i) 1.0% per annum and (ii) the three-month LIBOR. The SPV Borrower also pays a 0.50% per annum commitment fee on the unused portion of the commitments. In connection with this facility, the balance of capitalized financing costs of approximately $5.3 million , net of amortization, was included in the Condensed Consolidated Balance Sheet as a component of "Long-term debt" and was being amortized over the term of the Non-Recourse U.S. SPV Facility. On September 30, 2018, a portion of the proceeds from the 8.25% Senior Secured Notes were used to extinguish the revolver's balance of $42.4 million . In October 2018, the Company extinguished the remaining term loan balance of $80.0 million and made the final termination payment of $2.7 million , resulting in a loss on the extinguishment of debt of $9.7 million for the year ended December 31, 2018. Senior Revolver On September 1, 2017, the Company entered into a $25.0 million Senior Secured Revolving Loan Facility (the “Senior Revolver”). The terms of the Senior Revolver generally conform to the related provisions in the Indenture dated February 15, 2017 for the 12.00% Senior Secured Notes and complements the Company's other financing sources, while providing seasonal short-term liquidity. In February 2018, the Senior Revolver capacity was increased to $29.0 million as permitted by the Indenture to the 12.00% Senior Secured Notes based upon consolidated tangible assets. Additionally, in November 2018, the Senior Revolver capacity was increased to $50.0 million as permitted by the Indenture to the 8.25% Senior Secured Notes. The Senior Revolver is now syndicated with participation by four banks. Under the Senior Revolver, there is $50.0 million maximum availability, including up to $5.0 million of standby letters of credit, for a one -year term, renewable for successive terms following annual review. The Senior Revolver accrues interest at the one -month LIBOR plus 5.00% (subject to a 5% overall rate minimum) and is repayable on demand. The terms of the Senior Revolver require that its outstanding balance be zero for at least 30 consecutive days in each calendar year. The Senior Revolver is guaranteed by all subsidiaries that guarantee the 8.25% Senior Secured Notes and is secured by a lien on substantially all assets of CURO and the guarantor subsidiaries that is senior to the lien securing the 8.25% Senior Secured Notes. The revolver was undrawn at March 31, 2019 . The Senior Revolver contains various conditions to borrowing and affirmative, negative and financial maintenance covenants. Certain of the more significant covenants are (i) minimum eligible collateral value, (ii) consolidated interest coverage ratio and (iii) consolidated leverage ratio. The Senior Revolver also contains various events of default, the occurrence of which could result in termination of the lenders’ commitments to lend and the acceleration of all obligations under the Senior Revolver. As of March 31, 2019 , the Company was in full compliance with the covenants and other provisions of the Senior Revolver. Cash Money Revolving Credit Facility Cash Money Cheque Cashing, Inc., a Canadian subsidiary ("Cash Money"), maintains a C $10.0 million revolving credit facility with Royal Bank of Canada (the "Cash Money Revolving Credit Facility"), which provides short-term liquidity required to meet the working capital needs of the Company's Canadian operations. Aggregate draws under the revolving credit facility are limited to the lesser of: (i) the borrowing base, which is defined as a percentage of cash, deposits in transit and accounts receivable, and (ii) C $10.0 million . As of March 31, 2019 , the borrowing capacity under the Cash Money Revolving Credit Facility was reduced by C $0.3 million in stand-by-letters of credit. The Cash Money Revolving Credit Facility is collateralized by substantially all of Cash Money’s assets and contains various covenants that include, among other things, that the aggregate borrowings outstanding under the facility not exceed the borrowing base, restrictions on the encumbrance of assets and the creation of indebtedness. Borrowings under the Cash Money Revolving Credit Facility bear interest (per annum) at the prime rate of a Canadian chartered bank plus 1.95% . The Cash Money Revolving Credit Facility was undrawn at March 31, 2019 and December 31, 2018. Subordinated Stockholder Debt As part of the acquisition of Cash Money in 2011, the Company was provided indemnification for certain claims through issuance of an escrow note to the seller. This note bears interest at 10.0% per annum, and quarterly interest payments are due until the note matures in May 2019. The balance of this note at March 31, 2019 and December 31, 2018 was $2.2 million . |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION The Company's stockholder-approved 2017 Incentive Plan provides for the issuance of up to 5.0 million shares, subject to certain adjustment provisions, which may be issued in the form of stock options, restricted stock awards, restricted stock units (“RSUs”), stock appreciation rights, performance awards and other awards that may be settled in or based upon common stock. Awards may be granted to officers, employees, consultants and directors. The 2017 Incentive Plan provides that shares of common stock subject to awards granted become available for re-issuance if such awards expire, terminate, are canceled for any reason or are forfeited by the recipient. In March 2019, the Company awarded performance-based RSUs that will vest if certain performance conditions are met by the Company. These RSUs were designed to drive the performance of the management team toward achievement of key corporate objectives and will only vest if the performance targets are met by March 14, 2022. Expense recognition for the performance awards, which was immaterial to the first quarter of 2019, commences if and when it is determined that attainment of the performance goal is probable. RSUs that have time-based vesting are typically valued at the date of grant based on the value of the Company's common stock and are expensed using the straight-line method over the service period. RSUs that require the achievement of a performance condition to vest are typically valued using the Monte Carlo simulation pricing model. Grants of RSUs do not confer full stockholder rights such as voting rights and cash dividends, but provide for additional dividend equivalent RSU awards in lieu of cash dividends. Unvested shares of RSUs may be forfeited upon termination of employment depending on the circumstances of the termination, or failure to achieve the required performance condition, if applicable. A summary of the status of time-based and performance-based RSUs as of March 31, 2019 and changes during the three months ended March 31, 2019 are presented in the following table: Number of RSUs Time-Based Performance-Based Weighted Average Grant Date Fair Value per Share December 31, 2018 1,060,350 — $ 14.29 Granted 434,272 394,752 9.93 Vested (17,406 ) — 15.94 Forfeited (68,778 ) — 14.05 March 31, 2019 1,408,438 394,752 $ 12.28 Share-based compensation expense during the three months ended March 31, 2019 and 2018 , which includes compensation costs from stock options and RSUs was $2.1 million and $1.8 million , respectively, and is included in the Condensed Consolidated Statements of Operations as a component of "Corporate, district and other" expense. As of March 31, 2019 , there was $20.4 million of total unrecognized compensation cost related to stock options and RSUs, of which $17.1 million related to stock options and time-based RSUs and $3.3 million related to performance-based RSUs. Total unrecognized compensation costs will be recognized over a weighted-average period of 2.2 years . |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company's effective income tax rate from continuing operations was 25.9% and 31.5% for the three months ended March 31, 2019 and 2018 , respectively. On December 22, 2017, the 2017 Tax Act became law, which reduced the statutory U.S. Federal corporate income tax rate from 35% to 21%, enacted a one-time “deemed repatriation” tax on unremitted earnings accumulated in non-U.S. jurisdictions and imposed a new minimum tax on global intangible low-taxed income ("GILTI"). The Company provided an estimate of the deemed repatriation tax as of December 31, 2017 and pursuant to further IRS guidance, the Company recorded an additional accrual of $1.2 million during the three months ended March 31, 2018. The Company recorded an estimated GILTI tax of $0.4 million and $0.6 million during the three months ended March 31, 2019 and 2018 , respectively. The Company intends to reinvest Canada earnings indefinitely in its Canadian operations and therefore has not provided for any non-U.S. withholding tax that would be assessed on dividend distributions. If the earnings of $165.8 million were distributed to the U.S., the Company would be subject to Canadian withholding taxes of estimated $8.3 million . In the event the earnings were distributed to the U.S., the Company would adjust the income tax provision for the applicable period and would determine the amount of foreign tax credit that would be available. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The Company is required to use valuation techniques that are consistent with the market approach, income approach and/or cost approach. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability based on observable market data obtained from independent sources, or unobservable, meaning those that reflect the Company's own estimate about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. Accounting standards establish a three-level fair value hierarchy based upon the assumptions (inputs) used to price assets or liabilities. The hierarchy requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are listed below. Level 1 – Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has access to at the measurement date. Level 2 – Inputs include quoted market prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). Level 3 – Unobservable inputs reflecting the Company's own judgments about the assumptions market participants would use in pricing the asset or liability since limited market data exists. The Company develops these inputs based on the best information available, including its own data. Financial Assets and Liabilities Not Carried at Fair Value The table below presents the assets and liabilities that were not carried at fair value on the Condensed Consolidated Balance Sheets at March 31, 2019 : Estimated Fair Value (in thousands) Carrying Value March 31, Level 1 Level 2 Level 3 March 31, 2019 Financial assets: Cash $ 82,859 $ 82,859 $ — $ — $ 82,859 Restricted cash 34,319 34,319 — — 34,319 Loans receivable, net 458,893 — — 458,893 458,893 Investment in Cognical 6,558 — — 6,558 6,558 Financial liabilities: Liability for losses on CSO lender-owned consumer loans $ 8,662 $ — $ — $ 8,662 $ 8,662 8.25% Senior Secured Notes 677,153 — — 580,659 580,659 Non-Recourse Canada SPV facility 88,915 — — 92,718 92,718 The table below presents the assets and liabilities that were not carried at fair value on the Condensed Consolidated Balance Sheets at December 31, 2018 : Estimated Fair Value (in thousands) Carrying Value December 31, Level 1 Level 2 Level 3 December 31, 2018 Financial assets: Cash $ 61,175 $ 61,175 $ — $ — $ 61,175 Restricted cash 25,439 25,439 — — 25,439 Loans receivable, net 497,534 — — 497,534 497,534 Investment in Cognical 6,558 — — 6,558 6,558 Financial liabilities: Liability for losses on CSO lender-owned consumer loans $ 12,007 $ — $ — $ 12,007 $ 12,007 8.25% Senior Secured notes 676,661 — — 531,179 531,179 Non-Recourse Canada SPV facility 107,479 — — 111,335 111,335 Senior Revolver 20,000 — — 20,000 20,000 Loans receivable are carried on the Condensed Consolidated Balance Sheets net of the Allowance for estimated loan losses. The unobservable inputs used to calculate the carrying values include quantitative factors, such as default trends. Also considered in evaluating the accuracy of the models are changes to the loan portfolio mix, the impact of new loan products, changes to underwriting criteria or lending policies, new store development or entrance into new markets, changes in jurisdictional regulations or laws, recent credit trends and general economic conditions. The carrying value of loans receivable approximates their fair value. In connection with CSO programs, the Company guarantees consumer loan payment obligations to unrelated third-party lenders for loans that the Company arranges for consumers on the third-party lenders’ behalf. The Company is required to purchase from the lender defaulted loans that it has guaranteed. The fair value of the 8.25% Senior Secured Notes was based on broker quotations. The fair values of the Non-Recourse Canada SPV facility and the Senior Revolver were based on the cash needed for their respective final settlements. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY In connection with the Company's initial public offering in December 2017, the underwriters had a 30 -day option to purchase up to an additional 1.0 million shares of the Company's common stock at the initial public offering price, less the underwriting discount for over-allotments, if any. The underwriters exercised this option and purchased 1.0 million shares on January 5, 2018 . The exercise of this option provided additional proceeds of $13.1 million . The following table summarizes the changes in stockholders' equity for the three months ended March 31, 2018 and 2019: Common Stock Paid-in capital Retained Earnings (Deficit) AOCI (1) Total Stockholders' Equity (dollars in thousands) Shares Outstanding Par Value Balances at December 31, 2017 44,561,419 $ 8 $ 46,079 $ 3,988 $ (42,939 ) $ 7,136 Net income from continuing operations — — — 24,913 — 24,913 Net loss from discontinued operations — — — (1,621 ) — (1,621 ) Foreign currency translation adjustment — — — — (2,910 ) (2,910 ) Cash flow hedge expiration — — — — 54 54 Share based compensation expense — — 1,842 — — 1,842 Initial Public Offering, Net Proceeds (underwriter shares) 1,000,000 1 13,135 — — 13,136 Balances at March 31, 2018 45,561,419 $ 9 $ 61,056 $ 27,280 $ (45,795 ) $ 42,550 (1) Accumulated other comprehensive income (loss) Common Stock Paid-in capital Retained Earnings (Deficit) AOCI (1) Total Stockholders' Equity (dollars in thousands) Shares Outstanding Par Value Balances at December 31, 2018 46,412,231 $ 9 $ 60,015 $ (18,065 ) $ (61,060 ) $ (19,101 ) Net income from continuing operations — — — 28,673 — 28,673 Net income from discontinued operations — — — 8,375 — 8,375 Foreign currency translation adjustment — — — — 16,695 16,695 Share based compensation expense — — 2,172 — — 2,172 Proceeds from exercise of stock options 7,888 — 40 — — 40 Common stock issued for RSU's vesting, net of shares withheld and withholding paid for employee taxes 11,170 — (110 ) — — (110 ) Balances at March 31, 2019 46,431,289 $ 9 $ 62,117 $ 18,983 $ (44,365 ) $ 36,744 (1) Accumulated other comprehensive income (loss) |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table presents the computation of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended 2019 2018 Net income from continuing operations $ 28,673 $ 24,913 Net income (loss) from discontinued operations, net of tax 8,375 (1,621 ) Net income $ 37,048 $ 23,292 Weighted average common shares - basic 46,424 45,506 Dilutive effect of stock options and restricted stock units 895 1,910 Weighted average common shares - diluted 47,319 47,416 Basic income (loss) per share: Continuing operations $ 0.62 $ 0.55 Discontinued operations 0.18 (0.04 ) Basic income per share $ 0.80 $ 0.51 Diluted income (loss) per share: Continuing operations $ 0.61 $ 0.53 Discontinued operations 0.18 (0.03 ) Diluted income per share $ 0.79 $ 0.50 Potential shares of common stock that would have the effect of increasing diluted earnings per share or decreasing diluted loss per share are considered to be anti-dilutive and as such, these shares are not included in calculating "Diluted earnings per share." For the three months ended March 31, 2019 , there were 1.4 million potential shares of common stock excluded from the calculation of diluted earnings per share because their effect was anti-dilutive. There was no effect for the three months ended March 31, 2018 . The Company utilizes the "control number" concept in the computation of Diluted earnings per share to determine whether potential common stock instruments are dilutive. The control number used is income from continuing operations. The control number concept requires that the same number of potentially dilutive securities applied in computing diluted earnings per share from continuing operations be applied to all other categories of income or loss, regardless of their anti-dilutive effect on such categories. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 3 Months Ended |
Mar. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION The following table provides supplemental cash flow information: Three Months Ended (dollars in thousands) 2019 2018 Cash paid for: Interest $ 32,195 $ 40,225 Income taxes 1,456 4,431 Non-cash investing activities: Property and equipment accrued in accounts payable $ 349 $ 317 |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING Segment information is prepared on the same basis that the Company's chief operating decision maker ("CODM") reviews financial information for operational decision making purposes. During the first quarter of 2019, the U.K. subsidiaries met discontinued operations criteria, resulting in two reportable operating segments: the U.S. and Canada. Management’s evaluation of performance utilizes gross margin and operating profit before the allocation of interest expense and professional services. The following reporting segment results reflect this basis for evaluation and were determined in accordance with the same accounting principles used in the Condensed Consolidated Financial Statements. The following table illustrates summarized financial information concerning reportable segments. Three Months Ended (dollars in thousands) 2019 2018 Revenues by segment: U.S. $ 226,119 $ 204,593 Canada 51,820 46,250 Consolidated revenue $ 277,939 $ 250,843 Gross margin by segment: U.S. $ 89,803 $ 91,344 Canada 15,694 14,502 Consolidated gross margin $ 105,497 $ 105,846 Segment operating income: U.S. $ 31,195 $ 26,832 Canada 7,524 9,548 Consolidated operating profit $ 38,719 $ 36,380 Expenditures for long-lived assets by segment: U.S. $ 2,430 $ 788 Canada 689 754 Consolidated expenditures for long-lived assets $ 3,119 $ 1,542 The following table provides gross loans receivable by segment: (dollars in thousands) March 31, December 31, U.S. $ 321,534 $ 361,473 Canada 231,681 210,058 Total gross loans receivable $ 553,215 $ 571,531 The following table provides net long-lived assets, comprised of property and equipment, by segment. These amounts are aggregated on a legal entity basis and do not necessarily reflect where the asset is physically located: (dollars in thousands) March 31, 2019 December 31, 2018 U.S. $ 46,360 $ 47,918 Canada 28,900 28,832 Total net long-lived assets $ 75,260 $ 76,750 The Company's CODM does not review assets by segment for purposes of allocating resources or decision-making purposes; therefore, total assets by segment are not disclosed. |
CONTINGENT LIABILITIES
CONTINGENT LIABILITIES | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENT LIABILITIES | CONTINGENT LIABILITIES Securities Litigation On December 5, 2018, a putative securities fraud class action lawsuit was filed against the Company and its chief executive officer, chief financial officer and chief operating officer in the United States District Court for the District of Kansas, captioned Yellowdog Partners, LP v. CURO Group Holdings Corp., Donald F. Gayhardt, William Baker and Roger W. Dean , Civil Action No. 18-2662. The complaint alleges that the Company and the individual defendants violated Section 10(b) of the Exchange Act and that the individual defendants also violated Section 20(a) of the Exchange Act as “control persons” of CURO. Plaintiffs purport to bring these claims on behalf of a class of investors who purchased Company common stock between July 31, 2018 and October 24, 2018. Plaintiffs allege generally that, during the putative class period, the Company made misleading statements and omitted material information regarding its efforts to transition the Canadian inventory of products from Single-Pay loans to Open-End loans. Plaintiffs assert that the Company and the individual defendants made these misstatements and omissions to keep the stock price high. Plaintiffs seek unspecified damages and other relief. While the Company is vigorously contesting this lawsuit, it cannot determine the final resolution or when it might be resolved. In addition to the expenses incurred in defending this litigation and any damages that may be awarded in the event of an adverse ruling, management’s efforts and attention may be diverted from the ordinary business operations to address these claims. Regardless of the outcome, this litigation may have a material adverse impact on results because of defense costs, including costs related to indemnification obligations, diversion of resources and other factors. Related to this securities litigation matter, the Company has also received an inquiry from the SEC regarding the Company's public disclosures surrounding its efforts to transition the Canadian inventory of products from Single-Pay loans to Open-End loans. City of Austin The Company was cited in July 2016 by the City of Austin, Texas for alleged violations of the Austin ordinance addressing products offered by CSOs. The Austin ordinance regulates aspects of products offered under the Company's credit access bureau ("CAB") program, including loan sizes and repayment terms. The Company believes that: (i) the Austin ordinance (similar to its counterparts elsewhere in Texas) conflicts with Texas state law and (ii) in any event, the Company's product complies with the ordinance, when the ordinance is properly construed. The Austin Municipal Court agreed with the Company's position that the ordinance conflicts with Texas law and, accordingly, did not address the second argument. In September 2017, the Travis County Court reversed the Municipal Court’s decision and remanded the case for further proceedings. To date, a hearing and trial on the merits have not been scheduled. The Company does not anticipate having a final determination of the lawfulness of its CAB program under the Austin ordinance (and similar ordinances in other Texas cities) in the near future. A final adverse decision could potentially result in material monetary liability in Austin and elsewhere in Texas, and would force the Company to restructure the loans it originates in Austin and elsewhere in Texas. Other Legal Matters The Company is a defendant in certain litigation matters encountered in the ordinary course of business. Certain of these matters may be covered to an extent by insurance. In the opinion of management, based upon the advice of legal counsel, the likelihood is remote that the impact of any of these pending litigation matters, either individually or in the aggregate, would have a material adverse effect on the Company's consolidated financial condition, results of operations or cash flows. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
LEASES | LEASES The Company entered into operating leases for the buildings in which it operates that expire at various times through 2040. The Company determines if an arrangement is a lease at inception. Operating leases are included in "Right of use asset - operating leases" and "Lease liability - operating leases" in the Condensed Consolidated Balance Sheets. The Company currently has finance leases which in the aggregate are immaterial and not presented in the Condensed Consolidated Balance Sheets. ROU assets and lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. As most of the Company’s leases do not provide an implicit rate of return, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The majority of the leases have an original term of five years with two , five -year renewal options. For purposes of calculating operating lease liabilities, lease terms may be deemed to include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Most of the leases have escalation clauses and several also require payment of certain period costs, including maintenance, insurance and property taxes. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company had operating lease costs of approximately $8.5 million for the period ended March 31, 2019 . Some of the leases are with related parties and have terms similar to the non-related party leases previously described. Operating lease costs on unrelated third-party leases was $7.6 million and for related party leases was $0.8 million for the three months ended March 31, 2019 . During the three months ended March 31, 2019 , cash paid for amounts included in the measurement of the liabilities and the operating cash flows was $8.6 million . The following table summarizes the future minimum lease payments that the Company is contractually obligated to make under operating leases as of March 31, 2019: (in thousands) Third-Party Related-Party Total 2019 $ 23,222 $ 2,764 $ 25,986 2020 30,338 3,773 34,111 2021 29,918 3,875 33,793 2022 28,906 3,743 32,649 2023 24,411 1,299 25,710 Thereafter 40,326 1,114 41,440 Total 177,121 16,568 193,689 Less: Imputed interest (46,823 ) (3,429 ) (50,252 ) Operating lease liabilities $ 130,298 $ 13,139 $ 143,437 As of March 31, 2019, the weighted average remaining lease term was 6.1 years , and the weighted average operating discount rate used to determine the operating lease liability was 10.3% . |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 3 Months Ended |
Mar. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS On February 25, 2019, in accordance with the provisions of the U.K. Insolvency Act 1986 and as approved by the boards of directors of the U.K. Subsidiaries, insolvency practitioners from KPMG were appointed as Administrators for the U.K. Subsidiaries. The effect of the U.K. Subsidiaries’ entry into administration was to place their management, affairs, business and property of the U.K. Subsidiaries under the direct control of the Administrators. Accordingly, the Company deconsolidated the U.K. Subsidiaries, which comprised the U.K. reportable operating segment, as of February 25, 2019 and are classified as Discontinued Operations for all periods presented. The following table presents financial results of the U.K. Subsidiaries, which meet the criteria of Discontinued Operations and, therefore, are excluded from the Company's results of continuing operations: Three Months Ended (in thousands) 2019 (1) 2018 Revenue $ 6,957 $ 10,915 Provision for losses 1,703 4,148 Net revenue 5,254 6,767 Cost of providing services Office 246 528 Other costs of providing services 61 969 Advertising 775 1,871 Total cost of providing services 1,082 3,368 Gross margin 4,172 3,399 Operating expense (income) Corporate, district and other 3,810 5,025 Interest income (4 ) (5 ) Total operating expense 3,806 5,020 Income (loss) from operations of discontinued operations 366 (1,621 ) Gain on disposal of discontinued operations, net of estimated income tax benefit of $47,423 8,009 — Income from discontinued operations $ 8,375 $ (1,621 ) (1) Includes U.K. Subsidiaries financial results from January 1, 2019 to February 25, 2019. The following table presents the aggregate carrying amounts of the assets and liabilities of the U.K. Subsidiaries: (in thousands) March 31, December 31, ASSETS Cash $ — $ 9,859 Restricted cash — 3,384 Gross loans receivable — 25,256 Less: allowance for loan losses — (5,387 ) Loans receivable, net — 19,869 Prepaid expenses and other — 1,482 Other — 267 Total assets classified as discontinued operations in the Condensed Consolidated Balance Sheets $ — $ 34,861 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable and accrued liabilities $ — $ 8,136 Deferred revenue — 180 Accrued interest — (5 ) Deferred rent — 149 Other long-term liabilities — 422 Total liabilities classified as discontinued operations in the Condensed Consolidated Balance Sheets $ — $ 8,882 The following table presents cash flows of the U.K. Subsidiaries: Three Months Ended (in thousands) 2019 (1) 2018 Net cash (used in) / provided by discontinued operating activities $ (504 ) $ 1,411 Net cash used in discontinued investing activities (14,213 ) (3,782 ) Net cash used in discontinued financing activities — — (1) Includes U.K. Subsidiaries financial results from January 1, 2019 to February 25, 2019. |
CONDENSED CONSOLIDATING FINANCI
CONDENSED CONSOLIDATING FINANCIAL INFORMATION | 3 Months Ended |
Mar. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED CONSOLIDATING FINANCIAL INFORMATION | CONDENSED CONSOLIDATING FINANCIAL INFORMATION In August 2018, CGHC issued $690.0 million of 8.25% Senior Secured Notes due September 1, 2025. The proceeds from issuance of the 8.25% Senior Secured Notes were used to extinguish the February and November 2017 12.00% Senior Secured Notes due March 1, 2022. The redemption was conducted pursuant to the indenture governing the 8.25% Senior Secured Notes. See Note 5, "Long-Term Debt, " for additional details. In August 2018, CURO Canada Receivables Limited Partnership, a newly created, bankruptcy-remote special purpose vehicle (the "Canada SPV Borrower") and a wholly-owned subsidiary, entered into a four -year revolving credit facility with Waterfall Asset Management, LLC that provided for C$175.0 million of initial borrowing capacity and the ability to expand such capacity up to C$250.0 million ("Non-Recourse Canada SPV Facility"). See Note 5. "Long-Term Debt" for additional details. In March 2018, CFTC redeemed $77.5 million of the 12.00% Senior Secured Notes at a price equal to 112.00% of the principal amount plus accrued and unpaid interest to the date of redemption. The redemption was conducted pursuant to the indenture governing the 12.00% Senior Secured Notes, dated as of February 15, 2017, by and among CFTC, the guarantors party thereto and TMI Trust Company, as trustee and collateral agent. Consistent with the terms of the Indenture, CFTC used a portion of the cash proceeds from the Company's initial public offering, to redeem the 12.00% Senior Secured Notes. In November 2017, CFTC issued $135.0 million aggregate principal amount of additional 12.00% Senior Secured Notes in a private offering exempt from the registration requirements of the Securities Act (the "Additional Notes Offering"). CFTC used the proceeds from the Additional Notes Offering, together with available cash, to (i) pay a cash dividend, in an amount of $140.0 million to the Company, CFTC’s sole stockholder, and ultimately the Company's stockholders and (ii) pay fees, expenses, premiums and accrued interest in connection with the Additional Notes Offering. CFTC received the consent of the holders of a majority of the outstanding principal amount of the current Senior Secured Notes to a one-time waiver with respect to the restrictions contained in Section 5.07(a) of the indenture governing the 12.00% Senior Secured Notes to permit the dividend. In February 2017, CFTC issued $470.0 million aggregate principal amount 12.00% Senior Secured Notes, the proceeds of which were used together with available cash, to (i) redeem the outstanding 10.75% Senior Secured Notes due 2018 of CURO Intermediate, (ii) redeem the outstanding 12.00% Senior Cash Pay Notes due 2017 and (iii) pay fees, expenses, premiums and accrued interest in connection with the offering. CFTC sold the Senior Secured Notes to qualified institutional buyers under Rule 144A of the Securities Act of 1933, as amended (the “Securities Act”) or outside the U.S. to non-U.S. persons in compliance with Regulation S of the Securities Act. The following condensed consolidating financing information, which has been prepared in accordance with the requirements for presentation of Rule 3-10(d) of Regulation S-X promulgated under the Securities Act, presents the condensed consolidating financial information separately for: (i) CURO as the issuer of the 8.25% Senior Secured Notes; (ii) The Company's subsidiary guarantors, which are comprised of its domestic subsidiaries, including CFTC as the issuer of the 12.00% Senior Secured Notes that were redeemed in August 2018, CURO Intermediate, and U.S. SPV as the issuer of the Non-Recourse U.S. SPV Facility that was extinguished in October 2018, and excluding Canada SPV (the “Subsidiary Guarantors”), on a consolidated basis, which are 100% owned by CURO, and which are guarantors of the 8.25% Senior Secured Notes issued in August 2018; (iii) The Company's other subsidiaries on a consolidated basis, which are not guarantors of the 8.25% Senior Secured Notes (the “Subsidiary Non-Guarantors”) (iv) Consolidating and eliminating entries representing adjustments to: a. eliminate intercompany transactions between or among us, the Subsidiary Guarantors and the Subsidiary Non-Guarantors; and b. eliminate the investments in subsidiaries; (v) The Company and its subsidiaries on a consolidated basis. Condensed Consolidating Balance Sheets March 31, 2019 (dollars in thousands) Subsidiary Guarantors Subsidiary Non-Guarantors Canada SPV CURO Eliminations CURO Assets: Cash $ 62,729 $ 20,130 $ — $ — $ — $ 82,859 Restricted cash 15,775 3,084 15,460 — — 34,319 Loans receivable, net 254,622 46,403 157,868 — — 458,893 Right of use asset - operating leases 74,840 60,565 — — — 135,405 Deferred income taxes (6,445 ) 5,014 — 6,445 — 5,014 Income taxes receivable — — — 40,872 — 40,872 Prepaid expenses and other 30,459 6,052 — — — 36,511 Property and equipment, net 46,360 28,900 — — — 75,260 Goodwill 91,131 28,747 — — — 119,878 Other intangibles, net 8,165 21,803 — — — 29,968 Intercompany receivable 74,174 — — — (74,174 ) — Investment in subsidiaries — — — (36,075 ) 36,075 — Other 14,473 678 — — — 15,151 Total assets $ 666,283 $ 221,376 $ 173,328 $ 11,242 $ (38,099 ) $ 1,034,130 Liabilities and Stockholders' equity: Accounts payable and accrued liabilities $ 39,420 $ 2,886 $ 9,717 $ 19 $ — $ 52,042 Deferred revenue 4,574 3,233 44 — — 7,851 Lease liability - operating leases 82,667 60,745 — — — 143,412 Income taxes payable (26,737 ) 4,425 — 26,737 — 4,425 Accrued interest 2 — 847 4,744 — 5,593 Payable to CURO Holdings Corp. 738,730 — — (738,730 ) — — CSO liability for losses 8,662 — — — — 8,662 Long-term debt (excluding current maturities) — — 88,915 677,153 — 766,068 Subordinated shareholder debt — 2,243 — — — 2,243 Intercompany payable — 337 73,837 — (74,174 ) — Other liabilities 5,942 744 — — — 6,686 Deferred tax liabilities (4,171 ) — — 4,575 — 404 Total liabilities 849,089 74,613 173,360 (25,502 ) (74,174 ) 997,386 Stockholder’s equity (182,806 ) 146,763 (32 ) 36,744 36,075 36,744 Total liabilities and stockholder’s equity $ 666,283 $ 221,376 $ 173,328 $ 11,242 $ (38,099 ) $ 1,034,130 December 31, 2018 (dollars in thousands) Subsidiary Subsidiary Canada SPV CURO Eliminations CURO Assets: Cash $ 42,403 $ 18,772 $ — $ — $ — $ 61,175 Restricted cash 9,993 2,606 12,840 — — 25,439 Loans receivable, net 304,542 56,805 136,187 — — 497,534 Deferred income taxes — 1,534 — — — 1,534 Income taxes receivable 7,190 — — 9,551 — 16,741 Prepaid expenses and other 37,866 5,722 — — — 43,588 Property and equipment, net 47,918 28,832 — — — 76,750 Goodwill 91,131 28,150 — — — 119,281 Other intangibles, net 8,418 21,366 — — — 29,784 Intercompany receivable 77,009 — — — (77,009 ) — Investment in subsidiaries — — — (101,665 ) 101,665 — Other 12,253 677 — — — 12,930 Assets from discontinued operations — 2,406 — — 32,455 34,861 Total assets $ 638,723 $ 166,870 $ 149,027 $ (92,114 ) $ 57,111 $ 919,617 Liabilities and Stockholder's equity: Accounts payable and accrued liabilities $ 38,240 $ 5,734 $ 4,980 $ 192 $ — $ 49,146 Deferred revenue 5,981 3,462 40 — — 9,483 Income taxes payable — 1,579 — — — 1,579 Accrued interest 149 — 831 19,924 — 20,904 Payable to CURO Holdings Corp. 768,345 — — (768,345 ) — — CSO liability for losses 12,007 — — — — 12,007 Deferred rent 9,559 1,292 — — — 10,851 Long-term debt 20,000 — 107,479 676,661 — 804,140 Subordinated shareholder debt — 2,196 — — — 2,196 Intercompany payable — 224 44,330 — (44,554 ) — Other liabilities 4,967 833 — — — 5,800 Deferred tax liabilities 15,175 — — (1,445 ) — 13,730 Liabilities from discontinued operations — 8,882 — — — 8,882 Total liabilities 874,423 24,202 157,660 (73,013 ) (44,554 ) 938,718 Stockholder’s equity (235,700 ) 142,668 (8,633 ) (19,101 ) 101,665 (19,101 ) Total liabilities and stockholder’s equity $ 638,723 $ 166,870 $ 149,027 $ (92,114 ) $ 57,111 $ 919,617 Condensed Consolidating Statements of Operations Three Months Ended March 31, 2019 (dollars in thousands) Subsidiary Subsidiary Canada SPV CURO Eliminations CURO Revenue $ 226,119 $ 26,774 $ 25,046 $ — $ — $ 277,939 Provision for losses 84,980 4,099 13,306 — — 102,385 Net revenue 141,139 22,675 11,740 — — 175,554 Cost of providing services: Salaries and benefits 19,951 8,750 — — — 28,701 Occupancy 8,010 6,227 — — — 14,237 Office 3,889 1,224 — — — 5,113 Other costs of providing services 13,132 1,088 — — — 14,220 Advertising 6,354 1,432 — — — 7,786 Total cost of providing services 51,336 18,721 — — — 70,057 Gross margin 89,803 3,954 11,740 — — 105,497 Operating (income) expense: Corporate, district and other 41,538 5,183 25 2,342 — 49,088 Intercompany management fee (3,403 ) 3,395 8 — — — Interest expense 290 71 2,891 14,438 — 17,690 Intercompany interest (income) expense (1,071 ) 1,071 — — — — Total operating expense 37,354 9,720 2,924 16,780 — 66,778 Income (loss) from continuing operations before income taxes 52,449 (5,766 ) 8,816 (16,780 ) — 38,719 Provision (benefit) for income tax expense 14,020 1,034 — (5,008 ) — 10,046 Net income (loss) from continuing operations 38,429 (6,800 ) 8,816 (11,772 ) — 28,673 Net loss on discontinued operations — 8,375 — — — 8,375 Net (loss) income 38,429 1,575 8,816 (11,772 ) — 37,048 Equity in net income (loss) of subsidiaries: CFTC — — — 48,820 (48,820 ) — Guarantor Subsidiaries 38,429 — — — (38,429 ) — Non-Guarantor Subsidiaries 1,575 — — — (1,575 ) — SPV Subs 8,816 — — — (8,816 ) — Net income (loss) attributable to CURO $ 87,249 $ 1,575 $ 8,816 $ 37,048 $ (97,640 ) $ 37,048 Three Months Ended March 31, 2018 (dollars in thousands) CFTC CURO Intermediate Subsidiary Guarantors Subsidiary Non-Guarantors SPV Subs Eliminations CFTC Consolidated CURO Eliminations CURO Consolidated Revenue $ — $ — $ 128,408 $ 46,250 $ 76,185 $ — $ 250,843 $ — $ — $ 250,843 Provision for losses — — 35,769 12,550 28,564 — 76,883 — — 76,883 Net revenue — — 92,639 33,700 47,621 — 173,960 — — 173,960 Cost of providing services: Salaries and benefits — — 18,018 8,900 — — 26,918 — — 26,918 Occupancy — — 7,646 5,781 — — 13,427 — — 13,427 Office — — 5,582 871 — — 6,453 — — 6,453 Other store operating expenses — — 12,030 920 481 — 13,431 — — 13,431 Advertising — — 5,159 2,726 — — 7,885 — — 7,885 Total cost of providing services — — 48,435 19,198 481 — 68,114 — — 68,114 Gross Margin — — 44,204 14,502 47,140 — 105,846 — — 105,846 Operating (income) expense: Corporate, district and other 448 7 27,992 4,897 30 — 33,374 2,055 — 35,429 Intercompany management fee — — (6,443 ) 3,035 3,408 — — — — — Interest expense 18,322 — (112 ) 57 4,087 — 22,354 — — 22,354 Intercompany interest (income) expense — (801 ) (79 ) 880 — — — — — — Loss on extinguishment of debt 11,683 — — — — — 11,683 — — 11,683 Total operating expense 30,453 (794 ) 21,358 8,869 7,525 — 67,411 2,055 — 69,466 (Loss) income from continuing operations before income taxes (30,453 ) 794 22,846 5,633 39,615 — 38,435 (2,055 ) — 36,380 (Benefit) provision for income tax expense (6,841 ) 18,497 (1,585 ) 1,929 — — 12,000 (533 ) — 11,467 Net (loss) income from continuing operations (23,612 ) (17,703 ) 24,431 3,704 39,615 — 26,435 (1,522 ) — 24,913 Net loss from discontinued operations — — — (1,621 ) — — (1,621 ) — — (1,621 ) Net (loss) income (23,612 ) (17,703 ) 24,431 2,083 39,615 — 24,814 (1,522 ) — 23,292 Equity in net income (loss) of subsidiaries: CFTC — — — — — — — 24,814 (24,814 ) — CURO Intermediate (17,703 ) — — — — 17,703 — — — — Guarantor Subsidiaries 24,431 — — — — (24,431 ) — — — — Non-Guarantor Subsidiaries 3,704 — — — — (3,704 ) — — — — SPV Subs 39,615 — — — — (39,615 ) — — — — Net income (loss) attributable to CURO $ 26,435 $ (17,703 ) $ 24,431 $ 2,083 $ 39,615 $ (50,047 ) $ 24,814 $ 23,292 $ (24,814 ) $ 23,292 Condensed Consolidating Statements of Cash Flows Three Months Ended March 31, 2019 (dollars in thousands) Subsidiary Guarantors Subsidiary Non-Guarantors Canada SPV CURO Eliminations CURO Consolidated Cash flows from operating activities Net cash provided by (used in) continuing operating activities $ 88,291 $ (1,574 ) $ 53,969 $ 67 $ 246 $ 140,999 Net cash used in discontinued operating activities — (504 ) — — — (504 ) Cash flows from investing activities: Purchase of property, equipment and software (2,430 ) (689 ) — — — (3,119 ) Investment in Cognical Holdings (1,568 ) — — — — (1,568 ) Originations of loans, net (38,226 ) 3,652 (30,373 ) — — (64,947 ) Net cash (used in) provided by continuing investing activities (42,224 ) 2,963 (30,373 ) — — (69,634 ) Net cash used in discontinued investing activities — (14,213 ) — — — (14,213 ) Cash flows from financing activities: Proceeds from Non-Recourse Canada SPV facility — — 3,762 — — 3,762 Payments on Non-Recourse Canada SPV facility — — (24,831 ) — — (24,831 ) Proceeds from revolving credit facilities 15,000 15,478 — — — 30,478 Payments on revolving credit facilities (35,000 ) (15,478 ) — — — (50,478 ) Payments to net share settle RSUs — — — (37 ) — (37 ) Proceeds from exercise of stock options 40 — — — — 40 Debt issuance costs paid — — (169 ) (30 ) — (199 ) Net cash used in provided by financing activities (1) (19,960 ) — (21,238 ) (67 ) — (41,265 ) Effect of exchange rate changes on cash and restricted cash — 1,922 262 — (246 ) 1,938 Net increase (decrease) in cash and restricted cash 26,107 (11,406 ) 2,620 — — 17,321 Cash and restricted cash at beginning of period 52,397 34,620 12,840 — — 99,857 Cash at end of period $ 78,504 $ 23,214 $ 15,460 $ — $ — $ 117,178 (1) Financing activities include continuing operations only and were not impacted by discontinued operations Three Months Ended March 31, 2018 (dollars in thousands) CFTC CURO Intermediate Subsidiary Guarantors Subsidiary Non-Guarantors SPV Subs Eliminations CFTC Consolidated CURO CURO Cash flows from operating activities Net cash provided (used) in continuing operating activities $ 87,829 $ — $ (5,956 ) $ 15,391 $ 29,225 $ 9,469 $ 135,958 $ (13,215 ) $ 122,743 Net cash provided by (used in) discontinued operating activities — — — 6,958 — (5,547 ) 1,411 — 1,411 Cash flows from investing activities: Purchase of property, equipment and software — — (788 ) (754 ) — — (1,542 ) — (1,542 ) Originations of loans, net — — (28,277 ) (13,767 ) (14,309 ) — (56,353 ) — (56,353 ) Investment in Cognical Holdings (958 ) — — — — — (958 ) — (958 ) Net cash (used in) provided by continuing operating activities (958 ) — (29,065 ) (14,521 ) (14,309 ) — (58,853 ) — (58,853 ) Net cash provided by (used in) discontinued investing activities — — — (3,782 ) — — (3,782 ) — (3,782 ) Cash flows from financing activities: Proceeds from Non-Recourse U.S. SPV facility — — — — 3,000 — 3,000 — 3,000 Payments on Non-Recourse U.S. SPV facility — — — — (12,519 ) — (12,519 ) — (12,519 ) Proceeds from revolving credit facilities 10,000 — — — — — 10,000 — 10,000 Payments on revolving credit facilities (10,000 ) — — — — — (10,000 ) — (10,000 ) Net proceeds from issuance of common stock — — — — — — — 13,135 13,135 Payments on 12.00% Senior Secured Notes (77,500 ) — — — — — (77,500 ) — (77,500 ) Payments of call premiums from early debt extinguishments (9,300 ) — — — — — (9,300 ) — (9,300 ) Debt issuance costs paid (71 ) — — — — — (71 ) — (71 ) Net cash (used in) provided by financing activities (1) (86,871 ) — — — (9,519 ) — (96,390 ) 13,135 (83,255 ) Effect of exchange rate changes on cash — — — (438 ) — (3,922 ) (4,360 ) — (4,360 ) Net (decrease) increase in cash and restricted cash — — (35,021 ) 3,608 5,397 — (26,016 ) (80 ) (26,096 ) Cash and restricted cash at beginning of period — — 119,056 48,484 6,871 — 174,411 80 174,491 Cash and restricted cash at end of period $ — $ — $ 84,035 $ 52,092 $ 12,268 $ — $ 148,395 $ — $ 148,395 (1) Financing activities included continuing operations only and were not impacted by discontinued. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Share Repurchase Program In April 2019, the Company's Board of Directors authorized a share repurchase program providing for the repurchase of up to $50.0 million of its common stock. The repurchase program will continue until completed or terminated. CURO expects the purchases to be made from time-to-time in the open market, in privately negotiated transactions, or both, at the Company's discretion and subject to market conditions and other factors. Any repurchased shares will be available for use in connection with equity plans or other corporate purposes. Cognical Investment In April 2019, as part of a broader capital structure reorganization, the Company made an additional $2.8 million cash investment in Cognical Holdings, which operates under the Zibby brand. This funding round is expected to remain open through June 11, 2019. As a result of its investments in Cognical as well as Cognical’s overall reorganization, the Company expects to own a 30% to 35% interest in its outstanding shares, dependent upon total new capital contributed by other investors. When the funding round is completed, the Company expects to have financial information to determine the fair market value of its investments in Cognical Holdings. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The terms “CURO" and the “Company” refer to CURO Group Holdings Corp. and its directly and indirectly owned subsidiaries as a combined entity, except where otherwise stated. The term "CFTC" refers to CURO Financial Technologies Corp., a wholly-owned subsidiary, and its directly and indirectly owned subsidiaries as a consolidated entity, except where otherwise stated. The Company has prepared the accompanying unaudited Condensed Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (“US GAAP”), and with the accounting policies described in its Annual Report on Form 10-K for the year ended December 31, 2018 ("2018 Form 10-K"). Certain information and note disclosures normally included in annual financial statements prepared in accordance with US GAAP have been condensed or omitted, although the Company believes that the disclosures are adequate to enable a reasonable understanding of the information presented. The unaudited Condensed Consolidated Financial Statements and the accompanying notes reflect all adjustments, which are, in the opinion of management, necessary to present fairly the Company's results of operations, financial position and cash flows for the periods presented. On February 25, 2019, the Company's U.K. segment was placed into administration, which resulted in treatment of the segment as discontinued operations for all periods presented. Throughout this Quarterly Report on Form 10-Q ("Form 10-Q"), current and prior period financial information is presented as if the U.K. segment was excluded from continuing operations. For further information about the placement of the segment into administration, refer to "--Nature of Operations" below. The Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related Notes included in the 2018 Form 10-K. Interim results of operations are not necessarily indicative of results that may be expected for future interim periods or for the year ending December 31, 2019 . |
Principles of Consolidation | Principles of Consolidation The Condensed Consolidated Financial Statements include the accounts of CURO and its wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of Condensed Consolidated Financial Statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of revenues and expenses during the periods reported. Some of the significant estimates that the Company made in the accompanying Condensed Consolidated Financial Statements include allowances for loan losses, certain assumptions related to goodwill and intangibles, accruals related to self-insurance, credit services organization ("CSO") liability for losses and estimated tax liabilities. Actual results may differ from those estimates |
U.K. Segment Placed into Administration | U.K. Segment Placed into Administration On February 25, 2019, the Company announced that a proposed Scheme of Arrangement ("SOA"), as described in the Company's Current Report on Form 8-K filed January 31, 2019, would not be implemented. In accordance with the provisions of the U.K. Insolvency Act 1986 and as approved by the boards of directors of the Company’s U.K. subsidiaries, Curo Transatlantic Limited and SRC Transatlantic Limited (collectively, “the U.K. Subsidiaries”), insolvency practitioners from KPMG were appointed as administrators (“Administrators”) for the U.K. Subsidiaries. The effect of the U.K. Subsidiaries’ entry into administration was to place their management, affairs, business and property under the direct control of the Administrators. Accordingly, the Company deconsolidated the U.K. Subsidiaries as of February 25, 2019 and presented the U.K. Subsidiaries as Discontinued Operations for all periods presented in this Form 10-Q. |
Recently Adopted and Issued Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements ASU 2016-02 In February 2016, the Financial Accounting Standards Board ("FASB") established Topic 842, Leases, by issuing ASU No. 2016-02, which requires lessees to recognize leases on the balance sheet and disclose key information about leasing arrangements. The Company adopted ASU 2016-02 as of January 1, 2019, using the modified retrospective approach, which provides a method for recording existing leases at adoption and in comparative periods that approximates the results of a full retrospective approach. Adoption of the new standard resulted in the recording of right of use assets ("ROU assets") and additional operating lease liabilities ("lease liabilities") of $135.4 million and $143.4 million , respectively, as of March 31, 2019. Prepaid rent of $2.7 million and deferred liability of $10.9 million were included in ROU assets and lease liabilities, respectively. The standard did not materially impact the Company's consolidated net earnings. See Note 14 - "Leases" for additional information and disclosures required by Topic 842. ASU 2018-12 In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive income ("ASU 2018-02"), which permits the reclassification to retained earnings of disproportionate tax effects in accumulated other comprehensive income (loss) caused by the Tax Cuts and Jobs Act of 2017 ("2017 Tax Act"). The Company adopted ASU 2018-02 as of January 1, 2019, which did not have a material impact on the Condensed Consolidated Financial Statements. SEC Disclosure Update In the third quarter of 2018, the U.S. Securities and Exchange Commission ("SEC") adopted final rules under SEC Release No. 33-10532, Disclosure Update and Simplification , amending certain disclosure requirements that had become redundant, duplicative, overlapping, outdated or superseded. Other than the amendment's expanded disclosure requirement for interim financial statements to disclose both current and comparative quarter and year-to-date reconciliations of changes in stockholders' equity, it did not have a material impact on the Company's Condensed Consolidated Financial Statements or Notes thereto for the three months ended March 31, 2019 , nor is it expected to have a material impact on the Company's annual disclosures or financial statements. |
Variable Interest Entity | As the Company is the primary beneficiary of the VIEs, the Company includes the assets and liabilities related to the VIEs in its Condensed Consolidated Financial Statements. As required, the Company parenthetically discloses on the Consolidated Balance Sheets the VIEs’ assets that can only be used to settle the VIEs' obligations and liabilities if the VIEs’ creditors have no recourse against the Company's general credit. The carrying amount |
Fair Value of Financial Instruments | Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The Company is required to use valuation techniques that are consistent with the market approach, income approach and/or cost approach. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability based on observable market data obtained from independent sources, or unobservable, meaning those that reflect the Company's own estimate about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. Accounting standards establish a three-level fair value hierarchy based upon the assumptions (inputs) used to price assets or liabilities. The hierarchy requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are listed below. Level 1 – Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has access to at the measurement date. Level 2 – Inputs include quoted market prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). Level 3 – Unobservable inputs reflecting the Company's own judgments about the assumptions market participants would use in pricing the asset or liability since limited market data exists. The Company develops these inputs based on the best information available, including its own data. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Impact of the Correction | The Company has revised its Condensed Consolidated Financial Statements for the three months ended March 31, 2018 presented in this Form 10-Q. A summary of the correction follows: (dollars in thousands) Three Months Ended March 31, 2018 As Reported: (1) Net cash provided by continuing operating activities $ 66,390 Net cash used in continuing investing activities (2,500 ) As Corrected: Net cash provided by continuing operating activities 122,743 Net cash used in continuing investing activities (58,853 ) (1) "As reported" balances include amounts from continuing operations historically presented within these captions. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of the Carrying Amounts of Consolidated VIEs' Assets and Liabilities | The carrying amounts of consolidated VIEs' assets and liabilities associated with the VIE subsidiaries were as follows: (in thousands) March 31, 2019 December 31, 2018 Assets Restricted cash $ 15,460 $ 12,840 Gross loans receivable less allowance for loan losses 157,867 136,187 Total Assets $ 173,327 $ 149,027 Liabilities Accounts payable and accrued liabilities $ 9,717 $ 4,980 Deferred revenue 44 40 Accrued interest 848 831 Long-term debt 88,915 107,479 Total Liabilities $ 99,524 $ 113,330 |
LOANS RECEIVABLE AND REVENUE (T
LOANS RECEIVABLE AND REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Summary of Revenue by Product | The following table summarizes revenue by product for the periods indicated: Three Months Ended March 31, (in thousands) 2019 2018 Unsecured Installment $ 135,778 $ 125,379 Secured Installment 27,477 26,856 Open-End 52,869 27,223 Single-Pay 46,761 60,357 Ancillary 15,054 11,028 Total revenue $ 277,939 $ 250,843 |
Summary of Loans Receivable by Product and Related Delinquent Loans | The following tables summarize Loans receivable by product and the related delinquent loans receivable at March 31, 2019: March 31, 2019 (in thousands) Single-Pay Unsecured Installment Secured Installment Open-End Total Current loans receivable $ 69,753 $ 120,915 $ 67,375 $ 208,346 $ 466,389 Delinquent loans receivable — 40,801 13,581 32,444 86,826 Total loans receivable 69,753 161,716 80,956 240,790 553,215 Less: allowance for losses (3,897 ) (33,666 ) (9,796 ) (46,963 ) (94,322 ) Loans receivable, net $ 65,856 $ 128,050 $ 71,160 $ 193,827 $ 458,893 March 31, 2019 (in thousands) Unsecured Installment Secured Installment Open-End Total Delinquent loans receivable 0-30 days past due $ 13,455 $ 6,001 $ 12,423 $ 31,879 31-60 days past due 11,757 3,555 9,432 24,744 61-90 days past due 15,589 4,025 10,589 30,203 Total delinquent loans receivable $ 40,801 $ 13,581 $ 32,444 $ 86,826 The following tables summarize Loans receivable by product and the related delinquent loans receivable at December 31, 2018: December 31, 2018 (in thousands) Single-Pay Unsecured Installment Secured Installment Open-End Total Current loans receivable $ 80,823 $ 141,316 $ 75,583 $ 207,333 $ 505,055 Delinquent loans receivable — 49,087 17,389 — 66,476 Total loans receivable 80,823 190,403 92,972 207,333 571,531 Less: allowance for losses (4,189 ) (37,716 ) (12,191 ) (19,901 ) (73,997 ) Loans receivable, net $ 76,634 $ 152,687 $ 80,781 $ 187,432 $ 497,534 December 31, 2018 (in thousands) Unsecured Installment Secured Installment Total Delinquent loans receivable 0-30 days past due $ 17,850 $ 7,870 $ 25,720 31-60 days past due 14,705 4,725 19,430 61-90 days past due 16,532 4,794 21,326 Total delinquent loans receivable $ 49,087 $ 17,389 $ 66,476 The following tables summarize loans guaranteed by the Company under CSO programs and the related delinquent receivables at March 31, 2019: March 31, 2019 (in thousands) Unsecured Installment Secured Installment Total Current loans receivable guaranteed by the Company $ 51,773 $ 1,847 $ 53,620 Delinquent loans receivable guaranteed by the Company 7,967 284 8,251 Total loans receivable guaranteed by the Company 59,740 2,131 61,871 Less: Liability for losses on CSO lender-owned consumer loans (8,584 ) (78 ) (8,662 ) Loans receivable guaranteed by the Company, net $ 51,156 $ 2,053 $ 53,209 March 31, 2019 (in thousands) Unsecured Installment Secured Installment Total Delinquent loans receivable 0-30 days past due $ 6,388 $ 228 $ 6,616 31-60 days past due 926 33 959 61-90 days past due 653 23 676 Total delinquent loans receivable $ 7,967 $ 284 $ 8,251 The following tables summarize loans guaranteed by the Company under CSO programs and the related delinquent receivables at December 31, 2018: December 31, 2018 (in thousands) Unsecured Installment Secured Installment Total Current loans receivable guaranteed by the Company $ 65,743 $ 2,504 $ 68,247 Delinquent loans receivable guaranteed by the Company 11,708 446 12,154 Total loans receivable guaranteed by the Company 77,451 2,950 80,401 Less: Liability for losses on CSO lender-owned consumer loans (11,582 ) (425 ) (12,007 ) Loans receivable guaranteed by the Company, net $ 65,869 $ 2,525 $ 68,394 December 31, 2018 (in thousands) Unsecured Installment Secured Installment Total Delinquent loans receivable 0-30 days past due $ 9,684 $ 369 $ 10,053 31-60 days past due 1,255 48 1,303 61-90 days past due 769 29 798 Total delinquent loans receivable $ 11,708 $ 446 $ 12,154 |
Summary of the Activity in the Allowance for Loan Losses | The following table summarizes activity in the allowance for loan losses during the three months ended March 31, 2018 : Three Months Ended March 31, 2018 (in thousands) Single-Pay Unsecured Installment Secured Installment Open-End Other Total Balance, beginning of period $ 5,204 $ 38,977 $ 13,472 $ 6,426 $ — $ 64,079 Charge-offs (44,336 ) (35,219 ) (11,485 ) (20,349 ) (667 ) (112,056 ) Recoveries 32,818 5,218 2,866 9,377 39 50,318 Net charge-offs (11,518 ) (30,001 ) (8,619 ) (10,972 ) (628 ) (61,738 ) Provision for losses 9,892 24,739 6,786 11,428 628 53,473 Effect of foreign currency translation (64 ) (77 ) — (36 ) — (177 ) Balance, end of period $ 3,514 $ 33,638 $ 11,639 $ 6,846 $ — $ 55,637 Allowance for loan losses as a percentage of gross loan receivables 5.7 % 25.8 % 16.6 % 15.2 % N/A 18.1 % The following table summarizes activity in the allowance for loan losses during the three months ended March 31, 2019 : Three Months Ended March 31, 2019 (in thousands) Single-Pay Unsecured Installment Secured Installment Open-End Other Total Balance, beginning of period $ 4,189 $ 37,716 $ 12,191 $ 19,901 $ — $ 73,997 Charge-offs (36,521 ) (44,237 ) (12,671 ) (3,638 ) (1,351 ) (98,418 ) Recoveries 27,911 6,318 3,123 5,159 898 43,409 Net charge-offs (8,610 ) (37,919 ) (9,548 ) 1,521 (453 ) (55,009 ) Provision for losses 8,268 33,845 7,153 25,317 453 75,036 Effect of foreign currency translation 50 24 — 224 — 298 Balance, end of period $ 3,897 $ 33,666 $ 9,796 $ 46,963 $ — $ 94,322 Allowance for loan losses as a percentage of gross loan receivables 5.6 % 20.8 % 12.1 % 19.5 % N/A 17.0 % |
Summary of Activity in Credit Services Organization Guarantee Liability | The following table summarizes activity in the liability for losses on CSO lender-owned consumer loans during the three months ended March 31, 2019 : Three Months Ended (in thousands) Unsecured Installment Secured Installment Total Balance, beginning of period $ 11,582 $ 425 $ 12,007 Charge-offs (40,980 ) (1,076 ) (42,056 ) Recoveries 10,560 802 11,362 Net charge-offs (30,420 ) (274 ) (30,694 ) Provision for losses 27,422 (73 ) 27,349 Balance, end of period $ 8,584 $ 78 $ 8,662 The following table summarizes activity in the liability for losses on CSO lender-owned consumer loans during the three months ended March 31, 2018 : Three Months Ended March 31, 2018 (in thousands) Unsecured Installment Secured Installment Total Balance, beginning of period $ 17,073 $ 722 $ 17,795 Charge-offs (41,719 ) (1,219 ) (42,938 ) Recoveries 10,976 1,169 12,145 Net charge-offs (30,743 ) (50 ) (30,793 ) Provision for losses 23,556 (146 ) 23,410 Balance, end of period $ 9,886 $ 526 $ 10,412 |
Summary of Activity in Allowance for Loan Losses, Credit Services Organization Guarantee Liability | The following table summarizes activity in the allowance for loan losses and the liability for losses on CSO lender-owned consumer loans, in total, during the three months ended March 31, 2018 : Three Months Ended March 31, 2018 (in thousands) Single-Pay Unsecured Installment Secured Installment Open-End Other Total Balance, beginning of period $ 5,204 $ 56,050 $ 14,194 $ 6,426 $ — $ 81,874 Charge-offs (44,336 ) (76,938 ) (12,704 ) (20,349 ) (667 ) (154,994 ) Recoveries 32,818 16,194 4,035 9,377 39 62,463 Net charge-offs (11,518 ) (60,744 ) (8,669 ) (10,972 ) (628 ) (92,531 ) Provision for losses 9,892 48,295 6,640 11,428 628 76,883 Effect of foreign currency translation (64 ) (77 ) — (36 ) — (177 ) Balance, end of period $ 3,514 $ 43,524 $ 12,165 $ 6,846 $ — $ 66,049 The following table summarizes activity in the allowance for loan losses and the liability for losses on CSO lender-owned consumer loans, in total, during the three months ended March 31, 2019 : Three Months Ended March 31, 2019 (in thousands) Single-Pay Unsecured Installment Secured Installment Open-End Other Total Balance, beginning of period $ 4,189 $ 49,298 $ 12,616 $ 19,901 $ — $ 86,004 Charge-offs (36,521 ) (85,217 ) (13,747 ) (3,638 ) (1,351 ) (140,474 ) Recoveries 27,911 16,878 3,925 5,159 898 54,771 Net charge-offs (8,610 ) (68,339 ) (9,822 ) 1,521 (453 ) (85,703 ) Provision for losses 8,268 61,267 7,080 25,317 453 102,385 Effect of foreign currency translation 50 24 — 224 — 298 Balance, end of period $ 3,897 $ 42,250 $ 9,874 $ 46,963 $ — $ 102,984 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt consisted of the following: (in thousands) March 31, 2019 December 31, 2018 8.25% Senior Secured Notes (due 2025) $ 677,153 $ 676,661 Non-Recourse Canada SPV Facility 88,915 107,479 Senior Revolver — 20,000 Long-term debt $ 766,068 $ 804,140 |
SHARE-BASED COMPENSATION Tables
SHARE-BASED COMPENSATION Tables (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Restricted Stock Activity | A summary of the status of time-based and performance-based RSUs as of March 31, 2019 and changes during the three months ended March 31, 2019 are presented in the following table: Number of RSUs Time-Based Performance-Based Weighted Average Grant Date Fair Value per Share December 31, 2018 1,060,350 — $ 14.29 Granted 434,272 394,752 9.93 Vested (17,406 ) — 15.94 Forfeited (68,778 ) — 14.05 March 31, 2019 1,408,438 394,752 $ 12.28 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Not Measured At Fair Value | The table below presents the assets and liabilities that were not carried at fair value on the Condensed Consolidated Balance Sheets at March 31, 2019 : Estimated Fair Value (in thousands) Carrying Value March 31, Level 1 Level 2 Level 3 March 31, 2019 Financial assets: Cash $ 82,859 $ 82,859 $ — $ — $ 82,859 Restricted cash 34,319 34,319 — — 34,319 Loans receivable, net 458,893 — — 458,893 458,893 Investment in Cognical 6,558 — — 6,558 6,558 Financial liabilities: Liability for losses on CSO lender-owned consumer loans $ 8,662 $ — $ — $ 8,662 $ 8,662 8.25% Senior Secured Notes 677,153 — — 580,659 580,659 Non-Recourse Canada SPV facility 88,915 — — 92,718 92,718 The table below presents the assets and liabilities that were not carried at fair value on the Condensed Consolidated Balance Sheets at December 31, 2018 : Estimated Fair Value (in thousands) Carrying Value December 31, Level 1 Level 2 Level 3 December 31, 2018 Financial assets: Cash $ 61,175 $ 61,175 $ — $ — $ 61,175 Restricted cash 25,439 25,439 — — 25,439 Loans receivable, net 497,534 — — 497,534 497,534 Investment in Cognical 6,558 — — 6,558 6,558 Financial liabilities: Liability for losses on CSO lender-owned consumer loans $ 12,007 $ — $ — $ 12,007 $ 12,007 8.25% Senior Secured notes 676,661 — — 531,179 531,179 Non-Recourse Canada SPV facility 107,479 — — 111,335 111,335 Senior Revolver 20,000 — — 20,000 20,000 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of Stockholders Equity | The following table summarizes the changes in stockholders' equity for the three months ended March 31, 2018 and 2019: Common Stock Paid-in capital Retained Earnings (Deficit) AOCI (1) Total Stockholders' Equity (dollars in thousands) Shares Outstanding Par Value Balances at December 31, 2017 44,561,419 $ 8 $ 46,079 $ 3,988 $ (42,939 ) $ 7,136 Net income from continuing operations — — — 24,913 — 24,913 Net loss from discontinued operations — — — (1,621 ) — (1,621 ) Foreign currency translation adjustment — — — — (2,910 ) (2,910 ) Cash flow hedge expiration — — — — 54 54 Share based compensation expense — — 1,842 — — 1,842 Initial Public Offering, Net Proceeds (underwriter shares) 1,000,000 1 13,135 — — 13,136 Balances at March 31, 2018 45,561,419 $ 9 $ 61,056 $ 27,280 $ (45,795 ) $ 42,550 (1) Accumulated other comprehensive income (loss) Common Stock Paid-in capital Retained Earnings (Deficit) AOCI (1) Total Stockholders' Equity (dollars in thousands) Shares Outstanding Par Value Balances at December 31, 2018 46,412,231 $ 9 $ 60,015 $ (18,065 ) $ (61,060 ) $ (19,101 ) Net income from continuing operations — — — 28,673 — 28,673 Net income from discontinued operations — — — 8,375 — 8,375 Foreign currency translation adjustment — — — — 16,695 16,695 Share based compensation expense — — 2,172 — — 2,172 Proceeds from exercise of stock options 7,888 — 40 — — 40 Common stock issued for RSU's vesting, net of shares withheld and withholding paid for employee taxes 11,170 — (110 ) — — (110 ) Balances at March 31, 2019 46,431,289 $ 9 $ 62,117 $ 18,983 $ (44,365 ) $ 36,744 (1) Accumulated other comprehensive income (loss) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the computation of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended 2019 2018 Net income from continuing operations $ 28,673 $ 24,913 Net income (loss) from discontinued operations, net of tax 8,375 (1,621 ) Net income $ 37,048 $ 23,292 Weighted average common shares - basic 46,424 45,506 Dilutive effect of stock options and restricted stock units 895 1,910 Weighted average common shares - diluted 47,319 47,416 Basic income (loss) per share: Continuing operations $ 0.62 $ 0.55 Discontinued operations 0.18 (0.04 ) Basic income per share $ 0.80 $ 0.51 Diluted income (loss) per share: Continuing operations $ 0.61 $ 0.53 Discontinued operations 0.18 (0.03 ) Diluted income per share $ 0.79 $ 0.50 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | The following table provides supplemental cash flow information: Three Months Ended (dollars in thousands) 2019 2018 Cash paid for: Interest $ 32,195 $ 40,225 Income taxes 1,456 4,431 Non-cash investing activities: Property and equipment accrued in accounts payable $ 349 $ 317 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of Financial Information by Segment | The following table illustrates summarized financial information concerning reportable segments. Three Months Ended (dollars in thousands) 2019 2018 Revenues by segment: U.S. $ 226,119 $ 204,593 Canada 51,820 46,250 Consolidated revenue $ 277,939 $ 250,843 Gross margin by segment: U.S. $ 89,803 $ 91,344 Canada 15,694 14,502 Consolidated gross margin $ 105,497 $ 105,846 Segment operating income: U.S. $ 31,195 $ 26,832 Canada 7,524 9,548 Consolidated operating profit $ 38,719 $ 36,380 Expenditures for long-lived assets by segment: U.S. $ 2,430 $ 788 Canada 689 754 Consolidated expenditures for long-lived assets $ 3,119 $ 1,542 The following table provides gross loans receivable by segment: (dollars in thousands) March 31, December 31, U.S. $ 321,534 $ 361,473 Canada 231,681 210,058 Total gross loans receivable $ 553,215 $ 571,531 |
Summary of Long-lived Assets by Geographic Region | The following table provides net long-lived assets, comprised of property and equipment, by segment. These amounts are aggregated on a legal entity basis and do not necessarily reflect where the asset is physically located: (dollars in thousands) March 31, 2019 December 31, 2018 U.S. $ 46,360 $ 47,918 Canada 28,900 28,832 Total net long-lived assets $ 75,260 $ 76,750 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Summary of Future Minimum Lease Payments | The following table summarizes the future minimum lease payments that the Company is contractually obligated to make under operating leases as of March 31, 2019: (in thousands) Third-Party Related-Party Total 2019 $ 23,222 $ 2,764 $ 25,986 2020 30,338 3,773 34,111 2021 29,918 3,875 33,793 2022 28,906 3,743 32,649 2023 24,411 1,299 25,710 Thereafter 40,326 1,114 41,440 Total 177,121 16,568 193,689 Less: Imputed interest (46,823 ) (3,429 ) (50,252 ) Operating lease liabilities $ 130,298 $ 13,139 $ 143,437 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued operations aggregate carrying amounts of the assets and liabilities | The following table presents financial results of the U.K. Subsidiaries, which meet the criteria of Discontinued Operations and, therefore, are excluded from the Company's results of continuing operations: Three Months Ended (in thousands) 2019 (1) 2018 Revenue $ 6,957 $ 10,915 Provision for losses 1,703 4,148 Net revenue 5,254 6,767 Cost of providing services Office 246 528 Other costs of providing services 61 969 Advertising 775 1,871 Total cost of providing services 1,082 3,368 Gross margin 4,172 3,399 Operating expense (income) Corporate, district and other 3,810 5,025 Interest income (4 ) (5 ) Total operating expense 3,806 5,020 Income (loss) from operations of discontinued operations 366 (1,621 ) Gain on disposal of discontinued operations, net of estimated income tax benefit of $47,423 8,009 — Income from discontinued operations $ 8,375 $ (1,621 ) (1) Includes U.K. Subsidiaries financial results from January 1, 2019 to February 25, 2019. The following table presents the aggregate carrying amounts of the assets and liabilities of the U.K. Subsidiaries: (in thousands) March 31, December 31, ASSETS Cash $ — $ 9,859 Restricted cash — 3,384 Gross loans receivable — 25,256 Less: allowance for loan losses — (5,387 ) Loans receivable, net — 19,869 Prepaid expenses and other — 1,482 Other — 267 Total assets classified as discontinued operations in the Condensed Consolidated Balance Sheets $ — $ 34,861 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable and accrued liabilities $ — $ 8,136 Deferred revenue — 180 Accrued interest — (5 ) Deferred rent — 149 Other long-term liabilities — 422 Total liabilities classified as discontinued operations in the Condensed Consolidated Balance Sheets $ — $ 8,882 The following table presents cash flows of the U.K. Subsidiaries: Three Months Ended (in thousands) 2019 (1) 2018 Net cash (used in) / provided by discontinued operating activities $ (504 ) $ 1,411 Net cash used in discontinued investing activities (14,213 ) (3,782 ) Net cash used in discontinued financing activities — — (1) Includes U.K. Subsidiaries financial results from January 1, 2019 to February 25, 2019. |
CONDENSED CONSOLIDATING FINAN_2
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets March 31, 2019 (dollars in thousands) Subsidiary Guarantors Subsidiary Non-Guarantors Canada SPV CURO Eliminations CURO Assets: Cash $ 62,729 $ 20,130 $ — $ — $ — $ 82,859 Restricted cash 15,775 3,084 15,460 — — 34,319 Loans receivable, net 254,622 46,403 157,868 — — 458,893 Right of use asset - operating leases 74,840 60,565 — — — 135,405 Deferred income taxes (6,445 ) 5,014 — 6,445 — 5,014 Income taxes receivable — — — 40,872 — 40,872 Prepaid expenses and other 30,459 6,052 — — — 36,511 Property and equipment, net 46,360 28,900 — — — 75,260 Goodwill 91,131 28,747 — — — 119,878 Other intangibles, net 8,165 21,803 — — — 29,968 Intercompany receivable 74,174 — — — (74,174 ) — Investment in subsidiaries — — — (36,075 ) 36,075 — Other 14,473 678 — — — 15,151 Total assets $ 666,283 $ 221,376 $ 173,328 $ 11,242 $ (38,099 ) $ 1,034,130 Liabilities and Stockholders' equity: Accounts payable and accrued liabilities $ 39,420 $ 2,886 $ 9,717 $ 19 $ — $ 52,042 Deferred revenue 4,574 3,233 44 — — 7,851 Lease liability - operating leases 82,667 60,745 — — — 143,412 Income taxes payable (26,737 ) 4,425 — 26,737 — 4,425 Accrued interest 2 — 847 4,744 — 5,593 Payable to CURO Holdings Corp. 738,730 — — (738,730 ) — — CSO liability for losses 8,662 — — — — 8,662 Long-term debt (excluding current maturities) — — 88,915 677,153 — 766,068 Subordinated shareholder debt — 2,243 — — — 2,243 Intercompany payable — 337 73,837 — (74,174 ) — Other liabilities 5,942 744 — — — 6,686 Deferred tax liabilities (4,171 ) — — 4,575 — 404 Total liabilities 849,089 74,613 173,360 (25,502 ) (74,174 ) 997,386 Stockholder’s equity (182,806 ) 146,763 (32 ) 36,744 36,075 36,744 Total liabilities and stockholder’s equity $ 666,283 $ 221,376 $ 173,328 $ 11,242 $ (38,099 ) $ 1,034,130 December 31, 2018 (dollars in thousands) Subsidiary Subsidiary Canada SPV CURO Eliminations CURO Assets: Cash $ 42,403 $ 18,772 $ — $ — $ — $ 61,175 Restricted cash 9,993 2,606 12,840 — — 25,439 Loans receivable, net 304,542 56,805 136,187 — — 497,534 Deferred income taxes — 1,534 — — — 1,534 Income taxes receivable 7,190 — — 9,551 — 16,741 Prepaid expenses and other 37,866 5,722 — — — 43,588 Property and equipment, net 47,918 28,832 — — — 76,750 Goodwill 91,131 28,150 — — — 119,281 Other intangibles, net 8,418 21,366 — — — 29,784 Intercompany receivable 77,009 — — — (77,009 ) — Investment in subsidiaries — — — (101,665 ) 101,665 — Other 12,253 677 — — — 12,930 Assets from discontinued operations — 2,406 — — 32,455 34,861 Total assets $ 638,723 $ 166,870 $ 149,027 $ (92,114 ) $ 57,111 $ 919,617 Liabilities and Stockholder's equity: Accounts payable and accrued liabilities $ 38,240 $ 5,734 $ 4,980 $ 192 $ — $ 49,146 Deferred revenue 5,981 3,462 40 — — 9,483 Income taxes payable — 1,579 — — — 1,579 Accrued interest 149 — 831 19,924 — 20,904 Payable to CURO Holdings Corp. 768,345 — — (768,345 ) — — CSO liability for losses 12,007 — — — — 12,007 Deferred rent 9,559 1,292 — — — 10,851 Long-term debt 20,000 — 107,479 676,661 — 804,140 Subordinated shareholder debt — 2,196 — — — 2,196 Intercompany payable — 224 44,330 — (44,554 ) — Other liabilities 4,967 833 — — — 5,800 Deferred tax liabilities 15,175 — — (1,445 ) — 13,730 Liabilities from discontinued operations — 8,882 — — — 8,882 Total liabilities 874,423 24,202 157,660 (73,013 ) (44,554 ) 938,718 Stockholder’s equity (235,700 ) 142,668 (8,633 ) (19,101 ) 101,665 (19,101 ) Total liabilities and stockholder’s equity $ 638,723 $ 166,870 $ 149,027 $ (92,114 ) $ 57,111 $ 919,617 |
Condensed Consolidating Statements of Operations | Condensed Consolidating Statements of Operations Three Months Ended March 31, 2019 (dollars in thousands) Subsidiary Subsidiary Canada SPV CURO Eliminations CURO Revenue $ 226,119 $ 26,774 $ 25,046 $ — $ — $ 277,939 Provision for losses 84,980 4,099 13,306 — — 102,385 Net revenue 141,139 22,675 11,740 — — 175,554 Cost of providing services: Salaries and benefits 19,951 8,750 — — — 28,701 Occupancy 8,010 6,227 — — — 14,237 Office 3,889 1,224 — — — 5,113 Other costs of providing services 13,132 1,088 — — — 14,220 Advertising 6,354 1,432 — — — 7,786 Total cost of providing services 51,336 18,721 — — — 70,057 Gross margin 89,803 3,954 11,740 — — 105,497 Operating (income) expense: Corporate, district and other 41,538 5,183 25 2,342 — 49,088 Intercompany management fee (3,403 ) 3,395 8 — — — Interest expense 290 71 2,891 14,438 — 17,690 Intercompany interest (income) expense (1,071 ) 1,071 — — — — Total operating expense 37,354 9,720 2,924 16,780 — 66,778 Income (loss) from continuing operations before income taxes 52,449 (5,766 ) 8,816 (16,780 ) — 38,719 Provision (benefit) for income tax expense 14,020 1,034 — (5,008 ) — 10,046 Net income (loss) from continuing operations 38,429 (6,800 ) 8,816 (11,772 ) — 28,673 Net loss on discontinued operations — 8,375 — — — 8,375 Net (loss) income 38,429 1,575 8,816 (11,772 ) — 37,048 Equity in net income (loss) of subsidiaries: CFTC — — — 48,820 (48,820 ) — Guarantor Subsidiaries 38,429 — — — (38,429 ) — Non-Guarantor Subsidiaries 1,575 — — — (1,575 ) — SPV Subs 8,816 — — — (8,816 ) — Net income (loss) attributable to CURO $ 87,249 $ 1,575 $ 8,816 $ 37,048 $ (97,640 ) $ 37,048 Three Months Ended March 31, 2018 (dollars in thousands) CFTC CURO Intermediate Subsidiary Guarantors Subsidiary Non-Guarantors SPV Subs Eliminations CFTC Consolidated CURO Eliminations CURO Consolidated Revenue $ — $ — $ 128,408 $ 46,250 $ 76,185 $ — $ 250,843 $ — $ — $ 250,843 Provision for losses — — 35,769 12,550 28,564 — 76,883 — — 76,883 Net revenue — — 92,639 33,700 47,621 — 173,960 — — 173,960 Cost of providing services: Salaries and benefits — — 18,018 8,900 — — 26,918 — — 26,918 Occupancy — — 7,646 5,781 — — 13,427 — — 13,427 Office — — 5,582 871 — — 6,453 — — 6,453 Other store operating expenses — — 12,030 920 481 — 13,431 — — 13,431 Advertising — — 5,159 2,726 — — 7,885 — — 7,885 Total cost of providing services — — 48,435 19,198 481 — 68,114 — — 68,114 Gross Margin — — 44,204 14,502 47,140 — 105,846 — — 105,846 Operating (income) expense: Corporate, district and other 448 7 27,992 4,897 30 — 33,374 2,055 — 35,429 Intercompany management fee — — (6,443 ) 3,035 3,408 — — — — — Interest expense 18,322 — (112 ) 57 4,087 — 22,354 — — 22,354 Intercompany interest (income) expense — (801 ) (79 ) 880 — — — — — — Loss on extinguishment of debt 11,683 — — — — — 11,683 — — 11,683 Total operating expense 30,453 (794 ) 21,358 8,869 7,525 — 67,411 2,055 — 69,466 (Loss) income from continuing operations before income taxes (30,453 ) 794 22,846 5,633 39,615 — 38,435 (2,055 ) — 36,380 (Benefit) provision for income tax expense (6,841 ) 18,497 (1,585 ) 1,929 — — 12,000 (533 ) — 11,467 Net (loss) income from continuing operations (23,612 ) (17,703 ) 24,431 3,704 39,615 — 26,435 (1,522 ) — 24,913 Net loss from discontinued operations — — — (1,621 ) — — (1,621 ) — — (1,621 ) Net (loss) income (23,612 ) (17,703 ) 24,431 2,083 39,615 — 24,814 (1,522 ) — 23,292 Equity in net income (loss) of subsidiaries: CFTC — — — — — — — 24,814 (24,814 ) — CURO Intermediate (17,703 ) — — — — 17,703 — — — — Guarantor Subsidiaries 24,431 — — — — (24,431 ) — — — — Non-Guarantor Subsidiaries 3,704 — — — — (3,704 ) — — — — SPV Subs 39,615 — — — — (39,615 ) — — — — Net income (loss) attributable to CURO $ 26,435 $ (17,703 ) $ 24,431 $ 2,083 $ 39,615 $ (50,047 ) $ 24,814 $ 23,292 $ (24,814 ) $ 23,292 |
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows Three Months Ended March 31, 2019 (dollars in thousands) Subsidiary Guarantors Subsidiary Non-Guarantors Canada SPV CURO Eliminations CURO Consolidated Cash flows from operating activities Net cash provided by (used in) continuing operating activities $ 88,291 $ (1,574 ) $ 53,969 $ 67 $ 246 $ 140,999 Net cash used in discontinued operating activities — (504 ) — — — (504 ) Cash flows from investing activities: Purchase of property, equipment and software (2,430 ) (689 ) — — — (3,119 ) Investment in Cognical Holdings (1,568 ) — — — — (1,568 ) Originations of loans, net (38,226 ) 3,652 (30,373 ) — — (64,947 ) Net cash (used in) provided by continuing investing activities (42,224 ) 2,963 (30,373 ) — — (69,634 ) Net cash used in discontinued investing activities — (14,213 ) — — — (14,213 ) Cash flows from financing activities: Proceeds from Non-Recourse Canada SPV facility — — 3,762 — — 3,762 Payments on Non-Recourse Canada SPV facility — — (24,831 ) — — (24,831 ) Proceeds from revolving credit facilities 15,000 15,478 — — — 30,478 Payments on revolving credit facilities (35,000 ) (15,478 ) — — — (50,478 ) Payments to net share settle RSUs — — — (37 ) — (37 ) Proceeds from exercise of stock options 40 — — — — 40 Debt issuance costs paid — — (169 ) (30 ) — (199 ) Net cash used in provided by financing activities (1) (19,960 ) — (21,238 ) (67 ) — (41,265 ) Effect of exchange rate changes on cash and restricted cash — 1,922 262 — (246 ) 1,938 Net increase (decrease) in cash and restricted cash 26,107 (11,406 ) 2,620 — — 17,321 Cash and restricted cash at beginning of period 52,397 34,620 12,840 — — 99,857 Cash at end of period $ 78,504 $ 23,214 $ 15,460 $ — $ — $ 117,178 (1) Financing activities include continuing operations only and were not impacted by discontinued operations Three Months Ended March 31, 2018 (dollars in thousands) CFTC CURO Intermediate Subsidiary Guarantors Subsidiary Non-Guarantors SPV Subs Eliminations CFTC Consolidated CURO CURO Cash flows from operating activities Net cash provided (used) in continuing operating activities $ 87,829 $ — $ (5,956 ) $ 15,391 $ 29,225 $ 9,469 $ 135,958 $ (13,215 ) $ 122,743 Net cash provided by (used in) discontinued operating activities — — — 6,958 — (5,547 ) 1,411 — 1,411 Cash flows from investing activities: Purchase of property, equipment and software — — (788 ) (754 ) — — (1,542 ) — (1,542 ) Originations of loans, net — — (28,277 ) (13,767 ) (14,309 ) — (56,353 ) — (56,353 ) Investment in Cognical Holdings (958 ) — — — — — (958 ) — (958 ) Net cash (used in) provided by continuing operating activities (958 ) — (29,065 ) (14,521 ) (14,309 ) — (58,853 ) — (58,853 ) Net cash provided by (used in) discontinued investing activities — — — (3,782 ) — — (3,782 ) — (3,782 ) Cash flows from financing activities: Proceeds from Non-Recourse U.S. SPV facility — — — — 3,000 — 3,000 — 3,000 Payments on Non-Recourse U.S. SPV facility — — — — (12,519 ) — (12,519 ) — (12,519 ) Proceeds from revolving credit facilities 10,000 — — — — — 10,000 — 10,000 Payments on revolving credit facilities (10,000 ) — — — — — (10,000 ) — (10,000 ) Net proceeds from issuance of common stock — — — — — — — 13,135 13,135 Payments on 12.00% Senior Secured Notes (77,500 ) — — — — — (77,500 ) — (77,500 ) Payments of call premiums from early debt extinguishments (9,300 ) — — — — — (9,300 ) — (9,300 ) Debt issuance costs paid (71 ) — — — — — (71 ) — (71 ) Net cash (used in) provided by financing activities (1) (86,871 ) — — — (9,519 ) — (96,390 ) 13,135 (83,255 ) Effect of exchange rate changes on cash — — — (438 ) — (3,922 ) (4,360 ) — (4,360 ) Net (decrease) increase in cash and restricted cash — — (35,021 ) 3,608 5,397 — (26,016 ) (80 ) (26,096 ) Cash and restricted cash at beginning of period — — 119,056 48,484 6,871 — 174,411 80 174,491 Cash and restricted cash at end of period $ — $ — $ 84,035 $ 52,092 $ 12,268 $ — $ 148,395 $ — $ 148,395 (1) Financing activities included continuing operations only and were not impacted by discontinued. |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Jan. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Gross combined loans receivable, 90 days past-due | $ 86,826 | $ 66,476 | ||
Net cash provided by operating activities | (140,999) | $ (122,743) | ||
Net cash used in investing activities | 69,634 | $ 58,853 | ||
Right of use asset - operating leases | 135,405 | |||
Lease liability - operating leases | 143,412 | |||
Accounting Standards Update 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Right of use asset - operating leases | $ 135,400 | |||
Lease liability - operating leases | 143,400 | |||
Operating lease asset, prepaid rent | 2,700 | |||
Operating lease liability, deferred | $ 10,900 | |||
Consumer Portfolio Segment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Gross combined loans receivable, 90 days past-due | 86,826 | 66,476 | ||
Open-End | Consumer Portfolio Segment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Gross combined loans receivable, 90 days past-due | 32,444 | $ 0 | ||
Accrued interest on past-due loan balances | $ 8,900 | |||
Credit Concentration Risk | Allowance for Losses on Finance Receivables | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Concentration risk, percentage | 17.00% | 18.10% | ||
Credit Concentration Risk | Allowance for Losses on Finance Receivables | Open-End | Consumer Portfolio Segment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Concentration risk, percentage | 19.50% | 15.20% | 9.60% | |
Restatement Adjustment | Error Correction Of Prior Presentation Of Cash Flows For Loan Originations And Collections On Principal | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net cash provided by operating activities | $ (56,400) | |||
Net cash used in investing activities | $ 56,400 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS - Schedule of Impact of Correction (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net cash provided by continuing operating activities | $ 140,999 | $ 122,743 |
Net cash used in continuing investing activities | $ (69,634) | (58,853) |
Previously Reported | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net cash provided by continuing operating activities | 66,390 | |
Net cash used in continuing investing activities | $ (2,500) |
VARIABLE INTEREST ENTITIES - Ca
VARIABLE INTEREST ENTITIES - Carrying Amounts of Consolidated VIE Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Total Assets | $ 1,034,130 | $ 919,617 |
Liabilities | ||
Total Liabilities | 997,386 | 938,718 |
Variable Interest Entity | ||
ASSETS | ||
Restricted cash | 15,460 | 12,840 |
Gross loans receivable less allowance for loan losses | 157,867 | 136,187 |
Total Assets | 173,327 | 149,027 |
Liabilities | ||
Accounts payable and accrued liabilities | 9,717 | 4,980 |
Deferred revenue | 44 | 40 |
Accrued interest | 848 | 831 |
Long-term debt | 88,915 | 107,479 |
Total Liabilities | $ 99,524 | $ 113,330 |
LOANS RECEIVABLE AND REVENUE -
LOANS RECEIVABLE AND REVENUE - Revenue by Product (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue from External Customer [Line Items] | ||
Revenue | $ 277,939 | $ 250,843 |
Consumer Portfolio Segment | Unsecured Installment | ||
Revenue from External Customer [Line Items] | ||
Revenue | 135,778 | 125,379 |
Consumer Portfolio Segment | Secured Installment | ||
Revenue from External Customer [Line Items] | ||
Revenue | 27,477 | 26,856 |
Consumer Portfolio Segment | Open-End | ||
Revenue from External Customer [Line Items] | ||
Revenue | 52,869 | 27,223 |
Consumer Portfolio Segment | Single-Pay | ||
Revenue from External Customer [Line Items] | ||
Revenue | 46,761 | 60,357 |
Ancillary | ||
Revenue from External Customer [Line Items] | ||
Revenue | $ 15,054 | $ 11,028 |
LOANS RECEIVABLE AND REVENUE _2
LOANS RECEIVABLE AND REVENUE - Loans Receivable by Product and Delinquency (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Current loans receivable | $ 466,389 | $ 505,055 | ||
Delinquent loans receivable | 86,826 | 66,476 | ||
Total loans receivable | 553,215 | 571,531 | ||
Less: allowance for losses | (94,322) | (73,997) | $ (55,637) | $ (64,079) |
Loans receivable, net | 458,893 | 497,534 | ||
Consumer Portfolio Segment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Delinquent loans receivable | 86,826 | 66,476 | ||
Consumer Portfolio Segment | Single-Pay | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Current loans receivable | 69,753 | 80,823 | ||
Delinquent loans receivable | 0 | 0 | ||
Total loans receivable | 69,753 | 80,823 | ||
Less: allowance for losses | (3,897) | (4,189) | (3,514) | (5,204) |
Loans receivable, net | 65,856 | 76,634 | ||
Consumer Portfolio Segment | Unsecured Installment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Current loans receivable | 120,915 | 141,316 | ||
Delinquent loans receivable | 40,801 | 49,087 | ||
Total loans receivable | 161,716 | 190,403 | ||
Less: allowance for losses | (33,666) | (37,716) | (33,638) | (38,977) |
Loans receivable, net | 128,050 | 152,687 | ||
Consumer Portfolio Segment | Secured Installment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Current loans receivable | 67,375 | 75,583 | ||
Delinquent loans receivable | 13,581 | 17,389 | ||
Total loans receivable | 80,956 | 92,972 | ||
Less: allowance for losses | (9,796) | (12,191) | (11,639) | (13,472) |
Loans receivable, net | 71,160 | 80,781 | ||
Consumer Portfolio Segment | Open-End | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Current loans receivable | 208,346 | 207,333 | ||
Delinquent loans receivable | 32,444 | 0 | ||
Total loans receivable | 240,790 | 207,333 | ||
Less: allowance for losses | (46,963) | (19,901) | $ (6,846) | $ (6,426) |
Loans receivable, net | $ 193,827 | $ 187,432 |
LOANS RECEIVABLE AND REVENUE _3
LOANS RECEIVABLE AND REVENUE - Delinquent Loans - Aging Analysis (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | $ 86,826 | $ 66,476 |
Consumer Portfolio Segment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 86,826 | 66,476 |
Consumer Portfolio Segment | 0-30 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 31,879 | 25,720 |
Consumer Portfolio Segment | 31-60 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 24,744 | 19,430 |
Consumer Portfolio Segment | 61-90 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 30,203 | 21,326 |
Consumer Portfolio Segment | Unsecured Installment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 40,801 | 49,087 |
Consumer Portfolio Segment | Unsecured Installment | 0-30 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 13,455 | 17,850 |
Consumer Portfolio Segment | Unsecured Installment | 31-60 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 11,757 | 14,705 |
Consumer Portfolio Segment | Unsecured Installment | 61-90 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 15,589 | 16,532 |
Consumer Portfolio Segment | Secured Installment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 13,581 | 17,389 |
Consumer Portfolio Segment | Secured Installment | 0-30 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 6,001 | 7,870 |
Consumer Portfolio Segment | Secured Installment | 31-60 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 3,555 | 4,725 |
Consumer Portfolio Segment | Secured Installment | 61-90 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 4,025 | 4,794 |
Consumer Portfolio Segment | Open-End | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 32,444 | $ 0 |
Consumer Portfolio Segment | Open-End | 0-30 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 12,423 | |
Consumer Portfolio Segment | Open-End | 31-60 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 9,432 | |
Consumer Portfolio Segment | Open-End | 61-90 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | $ 10,589 |
LOANS RECEIVABLE AND REVENUE _4
LOANS RECEIVABLE AND REVENUE - Loans Receivable by Product, Credit Services Organization (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Current loans receivable guaranteed by the Company | $ 53,620 | $ 68,247 | ||
Delinquent loans receivable guaranteed by the Company | 8,251 | 12,154 | ||
Total loans receivable guaranteed by the Company | 61,871 | 80,401 | ||
Less: Liability for losses on CSO lender-owned consumer loans | (8,662) | (12,007) | $ (10,412) | $ (17,795) |
Loans receivable guaranteed by the Company, net | 53,209 | 68,394 | ||
Consumer Portfolio Segment | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Delinquent loans receivable guaranteed by the Company | 8,251 | 12,154 | ||
Consumer Portfolio Segment | Unsecured Installment | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Current loans receivable guaranteed by the Company | 51,773 | 65,743 | ||
Delinquent loans receivable guaranteed by the Company | 7,967 | 11,708 | ||
Total loans receivable guaranteed by the Company | 59,740 | 77,451 | ||
Less: Liability for losses on CSO lender-owned consumer loans | (8,584) | (11,582) | (9,886) | (17,073) |
Loans receivable guaranteed by the Company, net | 51,156 | 65,869 | ||
Consumer Portfolio Segment | Secured Installment | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Current loans receivable guaranteed by the Company | 1,847 | 2,504 | ||
Delinquent loans receivable guaranteed by the Company | 284 | 446 | ||
Total loans receivable guaranteed by the Company | 2,131 | 2,950 | ||
Less: Liability for losses on CSO lender-owned consumer loans | (78) | (425) | $ (526) | $ (722) |
Loans receivable guaranteed by the Company, net | $ 2,053 | $ 2,525 |
LOANS RECEIVABLE AND REVENUE _5
LOANS RECEIVABLE AND REVENUE - Delinquent Loans, Credit Services Organization - Aging Analysis (Details) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | $ 8,251 | $ 12,154 |
Consumer Portfolio Segment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 8,251 | 12,154 |
Consumer Portfolio Segment | 0-30 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 6,616 | 10,053 |
Consumer Portfolio Segment | 31-60 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 959 | 1,303 |
Consumer Portfolio Segment | 61-90 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 676 | 798 |
Consumer Portfolio Segment | Unsecured Installment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 7,967 | 11,708 |
Consumer Portfolio Segment | Unsecured Installment | 0-30 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 6,388 | 9,684 |
Consumer Portfolio Segment | Unsecured Installment | 31-60 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 926 | 1,255 |
Consumer Portfolio Segment | Unsecured Installment | 61-90 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 653 | 769 |
Consumer Portfolio Segment | Secured Installment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 284 | 446 |
Consumer Portfolio Segment | Secured Installment | 0-30 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 228 | 369 |
Consumer Portfolio Segment | Secured Installment | 31-60 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 33 | 48 |
Consumer Portfolio Segment | Secured Installment | 61-90 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | $ 23 | $ 29 |
LOANS RECEIVABLE AND REVENUE _6
LOANS RECEIVABLE AND REVENUE - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of period | $ 73,997 | $ 64,079 | $ 64,079 |
Charge-offs | (98,418) | (112,056) | |
Recoveries | 43,409 | 50,318 | |
Net charge-offs | (55,009) | (61,738) | |
Provision for losses | 75,036 | 53,473 | |
Effect of foreign currency translation | 298 | (177) | |
Balance, end of period | $ 94,322 | $ 55,637 | 73,997 |
Allowance for Losses on Finance Receivables | Credit Concentration Risk | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Concentration risk, percentage | 17.00% | 18.10% | |
Consumer Portfolio Segment | Single-Pay | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of period | $ 4,189 | $ 5,204 | 5,204 |
Charge-offs | (36,521) | (44,336) | |
Recoveries | 27,911 | 32,818 | |
Net charge-offs | (8,610) | (11,518) | |
Provision for losses | 8,268 | 9,892 | |
Effect of foreign currency translation | 50 | (64) | |
Balance, end of period | $ 3,897 | $ 3,514 | 4,189 |
Consumer Portfolio Segment | Single-Pay | Allowance for Losses on Finance Receivables | Credit Concentration Risk | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Concentration risk, percentage | 5.60% | 5.70% | |
Consumer Portfolio Segment | Unsecured Installment | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of period | $ 37,716 | $ 38,977 | 38,977 |
Charge-offs | (44,237) | (35,219) | |
Recoveries | 6,318 | 5,218 | |
Net charge-offs | (37,919) | (30,001) | |
Provision for losses | 33,845 | 24,739 | |
Effect of foreign currency translation | 24 | (77) | |
Balance, end of period | $ 33,666 | $ 33,638 | 37,716 |
Consumer Portfolio Segment | Unsecured Installment | Allowance for Losses on Finance Receivables | Credit Concentration Risk | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Concentration risk, percentage | 20.80% | 25.80% | |
Consumer Portfolio Segment | Secured Installment | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of period | $ 12,191 | $ 13,472 | 13,472 |
Charge-offs | (12,671) | (11,485) | |
Recoveries | 3,123 | 2,866 | |
Net charge-offs | (9,548) | (8,619) | |
Provision for losses | 7,153 | 6,786 | |
Effect of foreign currency translation | 0 | 0 | |
Balance, end of period | $ 9,796 | $ 11,639 | 12,191 |
Consumer Portfolio Segment | Secured Installment | Allowance for Losses on Finance Receivables | Credit Concentration Risk | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Concentration risk, percentage | 12.10% | 16.60% | |
Consumer Portfolio Segment | Open-End | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of period | $ 19,901 | $ 6,426 | 6,426 |
Charge-offs | (3,638) | (20,349) | |
Recoveries | 5,159 | 9,377 | |
Net charge-offs | 1,521 | (10,972) | |
Provision for losses | 25,317 | 11,428 | |
Effect of foreign currency translation | 224 | (36) | |
Balance, end of period | $ 46,963 | $ 6,846 | $ 19,901 |
Consumer Portfolio Segment | Open-End | Allowance for Losses on Finance Receivables | Credit Concentration Risk | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Concentration risk, percentage | 19.50% | 15.20% | 9.60% |
Consumer Portfolio Segment | Other | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of period | $ 0 | $ 0 | $ 0 |
Charge-offs | (1,351) | (667) | |
Recoveries | 898 | 39 | |
Net charge-offs | (453) | (628) | |
Provision for losses | 453 | 628 | |
Effect of foreign currency translation | 0 | 0 | |
Balance, end of period | $ 0 | $ 0 | $ 0 |
LOANS RECEIVABLE AND REVENUE _7
LOANS RECEIVABLE AND REVENUE - CSO Guarantee Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Guarantor Obligations [Roll Forward] | ||
Balance, beginning of period | $ 12,007 | $ 17,795 |
Charge-offs | (42,056) | (42,938) |
Recoveries | 11,362 | 12,145 |
Net charge-offs | (30,694) | (30,793) |
Provision for losses | 27,349 | 23,410 |
Balance, end of period | 8,662 | 10,412 |
Consumer Portfolio Segment | Unsecured Installment | ||
Guarantor Obligations [Roll Forward] | ||
Balance, beginning of period | 11,582 | 17,073 |
Charge-offs | (40,980) | (41,719) |
Recoveries | 10,560 | 10,976 |
Net charge-offs | (30,420) | (30,743) |
Provision for losses | 27,422 | 23,556 |
Balance, end of period | 8,584 | 9,886 |
Consumer Portfolio Segment | Secured Installment | ||
Guarantor Obligations [Roll Forward] | ||
Balance, beginning of period | 425 | 722 |
Charge-offs | (1,076) | (1,219) |
Recoveries | 802 | 1,169 |
Net charge-offs | (274) | (50) |
Provision for losses | (73) | 146 |
Balance, end of period | $ 78 | $ 526 |
LOANS RECEIVABLE AND REVENUE _8
LOANS RECEIVABLE AND REVENUE - Allowance For Doubtful Accounts - CSO Guarantee Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Financing Receivable, Allowance for Credit Losses And Guarantor Obligations [Roll Forward] | ||
Balance, beginning of period | $ 86,004 | $ 81,874 |
Charge-offs | (140,474) | (154,994) |
Recoveries | 54,771 | 62,463 |
Net charge-offs | (85,703) | (92,531) |
Provision for losses | 102,385 | 76,883 |
Effect of foreign currency translation | 298 | (177) |
Balance, end of period | 102,984 | 66,049 |
Consumer Portfolio Segment | Single-Pay | ||
Financing Receivable, Allowance for Credit Losses And Guarantor Obligations [Roll Forward] | ||
Balance, beginning of period | 4,189 | 5,204 |
Charge-offs | (36,521) | (44,336) |
Recoveries | 27,911 | 32,818 |
Net charge-offs | (8,610) | (11,518) |
Provision for losses | 8,268 | 9,892 |
Effect of foreign currency translation | 50 | (64) |
Balance, end of period | 3,897 | 3,514 |
Consumer Portfolio Segment | Unsecured Installment | ||
Financing Receivable, Allowance for Credit Losses And Guarantor Obligations [Roll Forward] | ||
Balance, beginning of period | 49,298 | 56,050 |
Charge-offs | (85,217) | (76,938) |
Recoveries | 16,878 | 16,194 |
Net charge-offs | (68,339) | (60,744) |
Provision for losses | 61,267 | 48,295 |
Effect of foreign currency translation | 24 | (77) |
Balance, end of period | 42,250 | 43,524 |
Consumer Portfolio Segment | Secured Installment | ||
Financing Receivable, Allowance for Credit Losses And Guarantor Obligations [Roll Forward] | ||
Balance, beginning of period | 12,616 | 14,194 |
Charge-offs | (13,747) | (12,704) |
Recoveries | 3,925 | 4,035 |
Net charge-offs | (9,822) | (8,669) |
Provision for losses | 7,080 | 6,640 |
Effect of foreign currency translation | 0 | 0 |
Balance, end of period | 9,874 | 12,165 |
Consumer Portfolio Segment | Open-End | ||
Financing Receivable, Allowance for Credit Losses And Guarantor Obligations [Roll Forward] | ||
Balance, beginning of period | 19,901 | 6,426 |
Charge-offs | (3,638) | (20,349) |
Recoveries | 5,159 | 9,377 |
Net charge-offs | 1,521 | (10,972) |
Provision for losses | 25,317 | 11,428 |
Effect of foreign currency translation | 224 | (36) |
Balance, end of period | 46,963 | 6,846 |
Consumer Portfolio Segment | Other | ||
Financing Receivable, Allowance for Credit Losses And Guarantor Obligations [Roll Forward] | ||
Balance, beginning of period | 0 | 0 |
Charge-offs | (1,351) | (667) |
Recoveries | 898 | 39 |
Net charge-offs | (453) | (628) |
Provision for losses | 453 | 628 |
Effect of foreign currency translation | 0 | 0 |
Balance, end of period | $ 0 | $ 0 |
CREDIT SERVICES ORGANIZATION (D
CREDIT SERVICES ORGANIZATION (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Credit services organization, fees receivable | $ 11,000 | $ 14,300 | ||
Guarantor obligations, maximum exposure, undiscounted | 51,600 | 66,900 | ||
Liability for losses on CSO lender-owned consumer loans | 8,662 | 12,007 | $ 10,412 | $ 17,795 |
Amounts placed in collateral accounts | $ 13,500 | $ 17,200 | ||
Minimum | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
CSO program loan terms | 6 months | |||
Maximum | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
CSO program loan terms | 18 months |
LONG-TERM DEBT - Schedule of Lo
LONG-TERM DEBT - Schedule of Long Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Aug. 31, 2018 | Aug. 13, 2018 | Aug. 02, 2018 |
Debt Instrument [Line Items] | |||||
Long-term debt | $ 766,068 | $ 804,140 | |||
Senior Notes | 8.25% Senior Secured Notes (due 2025) | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 677,153 | $ 676,661 | |||
Stated interest rate (as percent) | 8.25% | 8.25% | 8.25% | 8.25% | |
Line of Credit | Revolving Credit Facility | Non-Recourse Canada SPV Facility | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 88,915 | $ 107,479 | |||
Stated interest rate (as percent) | 6.75% | ||||
Line of Credit | Revolving Credit Facility | Senior Revolver | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 0 | $ 20,000 |
LONG-TERM DEBT - Senior Secured
LONG-TERM DEBT - Senior Secured Notes (Details) - USD ($) | Aug. 13, 2018 | Mar. 07, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Aug. 31, 2018 | Nov. 30, 2017 | Feb. 28, 2017 |
Line of Credit Facility [Line Items] | ||||||||
Loss on extinguishment of debt | $ 0 | $ 11,683,000 | ||||||
Long-term debt | $ 766,068,000 | $ 804,140,000 | ||||||
12% Senior Secured Notes | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Stated interest rate (as percent) | 12.00% | |||||||
Senior Notes | 8.25% Senior Secured Notes | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Stated interest rate (as percent) | 8.25% | 8.25% | 8.25% | 8.25% | ||||
Debt issuance costs capitalized | $ 12,800,000 | |||||||
Debt instrument, term | 5 years | |||||||
Debt instrument, face amount | $ 690,000,000 | |||||||
Loss on extinguishment of debt | $ 69,200,000 | |||||||
Long-term debt | $ 677,153,000 | 676,661,000 | ||||||
Senior Notes | 12% Senior Secured Notes | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Stated interest rate (as percent) | 12.00% | 12.00% | ||||||
Debt issuance costs capitalized | $ 18,300,000 | |||||||
Debt instrument, face amount | $ 135,000,000 | $ 470,000,000 | ||||||
Notice of redemption, amount | $ 77,500,000 | |||||||
Redemption price, percentage of redemption amount (as percent) | 112.00% | |||||||
Loss on extinguishment of debt | $ 11,700,000 | |||||||
Long-term debt | $ 527,500,000 |
LONG-TERM DEBT - Non-Recourse C
LONG-TERM DEBT - Non-Recourse Canada SPV Facility (Details) $ in Thousands | Aug. 02, 2018CAD ($) | Apr. 30, 2019 | Aug. 31, 2018CAD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) |
Line of Credit Facility [Line Items] | ||||||
Long-term debt | $ 766,068 | $ 804,140 | ||||
Non-Recourse Canada SPV Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Payments on credit facilities | 24,831 | $ 0 | ||||
Line of Credit | Non-Recourse Canada SPV Facility | Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, term | 4 years | 4 years | ||||
Line of credit facility, initial borrowing capacity | $ 175,000,000 | $ 175,000,000 | ||||
Credit facility, expansion capacity | $ 250,000,000 | $ 250,000,000 | ||||
Stated interest rate (as percent) | 6.75% | |||||
Commitment fee (as percent) | 0.50% | |||||
Long-term debt | $ 88,915 | $ 107,479 | ||||
Subsequent Event | Line of Credit | Non-Recourse Canada SPV Facility | Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, extended term | 1 year |
LONG-TERM DEBT - Non-Recourse U
LONG-TERM DEBT - Non-Recourse U.S. SPV Facility (Details) - USD ($) | Oct. 26, 2018 | Aug. 13, 2018 | Oct. 31, 2018 | Sep. 30, 2018 | Nov. 30, 2016 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Aug. 31, 2018 |
Debt Instrument [Line Items] | |||||||||
Loss on extinguishment of debt | $ 0 | $ 11,683,000 | |||||||
Line of Credit and Secured Debt | Non-Recourse U.S. SPV Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, term | 5 years | ||||||||
Line of Credit | Non-Recourse U.S. SPV Facility | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 70,000,000 | ||||||||
Debt issuance costs capitalized | 5,300,000 | ||||||||
Extinguishment of debt | $ 42,400,000 | ||||||||
Secured Debt | Non-Recourse U.S. SPV Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 80,000,000 | ||||||||
Maximum effective interest rate (as percent) | 12.00% | ||||||||
Commitment fee (as percent) | 0.50% | ||||||||
Extinguishment of debt | $ 2,700,000 | $ 80,000,000 | |||||||
Loss on extinguishment of debt | $ 9,700,000 | ||||||||
Secured Debt | Non-Recourse U.S. SPV Facility | London Interbank Offered Rate (LIBOR) | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread (as percent) | 1.00% | ||||||||
Senior Notes | 8.25% Senior Secured Notes (due 2025) | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, term | 5 years | ||||||||
Debt issuance costs capitalized | $ 12,800,000 | ||||||||
Stated interest rate (as percent) | 8.25% | 8.25% | 8.25% | 8.25% | |||||
Loss on extinguishment of debt | $ 69,200,000 |
LONG-TERM DEBT - Senior Revolve
LONG-TERM DEBT - Senior Revolver (Details) | Aug. 13, 2018 | Nov. 30, 2018USD ($) | Nov. 30, 2016 | Mar. 31, 2019lender | Dec. 31, 2018 | Aug. 31, 2018 | Feb. 28, 2018USD ($) | Nov. 30, 2017 | Sep. 30, 2017USD ($) | Feb. 28, 2017 |
12% Senior Secured Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate (as percent) | 12.00% | |||||||||
Line of Credit | Revolving Credit Facility | Senior Revolver | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | $ 29,000,000 | $ 25,000,000 | |||||||
Number of banks | lender | 4 | |||||||||
Covenant terms, oustanding balance requirement for calendar year | $ 0 | |||||||||
Covenant terms, outstanding balance requirement, minimum number of days | 30 days | |||||||||
Line of Credit | Letter of Credit | Senior Revolver | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 5,000,000 | |||||||||
Debt instrument, term | 1 year | |||||||||
Senior Notes | 12% Senior Secured Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate (as percent) | 12.00% | 12.00% | ||||||||
Senior Notes | 8.25% Senior Secured Notes (due 2025) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate (as percent) | 8.25% | 8.25% | 8.25% | 8.25% | ||||||
Debt instrument, term | 5 years | |||||||||
London Interbank Offered Rate (LIBOR) | Line of Credit | Senior Revolver | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread (as percent) | 5.00% | |||||||||
Minimum | London Interbank Offered Rate (LIBOR) | Line of Credit | Senior Revolver | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread (as percent) | 5.00% |
LONG-TERM DEBT - Cash Money Rev
LONG-TERM DEBT - Cash Money Revolving Credit Facility (Details) - Line of Credit - Cash Money Revolving Credit Facility | 3 Months Ended |
Mar. 31, 2019CAD ($) | |
Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 10,000,000 |
Revolving Credit Facility | Prime Rate | |
Debt Instrument [Line Items] | |
Basis spread (as percent) | 1.95% |
Standby Letters of Credit | |
Debt Instrument [Line Items] | |
Reduction in borrowing capacity | $ 300,000 |
LONG-TERM DEBT - Subordinated S
LONG-TERM DEBT - Subordinated Stockholder Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Subordinated stockholder debt | $ 2,243 | $ 2,196 |
Subordinated Debt | Subordinated Shareholder Debt | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as percent) | 10.00% | |
Subordinated stockholder debt | $ 2,200 | $ 2,200 |
SHARE-BASED COMPENSATION - Addi
SHARE-BASED COMPENSATION - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 2.1 | $ 1.8 |
Unrecognized compensation costs | $ 20.4 | |
Compensation cost not yet recognized, period for recognition | 2 years 2 months 24 days | |
2017 Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized (in shares) | 5,000,000 | |
Time-Based | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation costs | $ 17.1 | |
Performance-Based | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation costs | $ 3.3 |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summary of RSUs and PSUs (Details) | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Time-Based | |
Number of Shares | |
Outstanding, beginning of period (in shares) | 1,060,350 |
Granted (in shares) | 434,272 |
Vested (in shares) | (17,406) |
Forfeited (in shares) | (68,778) |
Outstanding, end of period (in shares) | 1,408,438 |
Weighted Average Grant Date Fair Value per Share | |
Weighted average grant date fair value, beginning of period (USD per share) | $ / shares | $ 14.29 |
Weighted average grant date fair value, granted (USD per share) | $ / shares | 9.93 |
Weighted average grant date fair value, vested (USD per share) | $ / shares | 15.94 |
Weighted average grant date fair value, forfeited (USD per share) | $ / shares | 14.05 |
Weighted average grant date fair value, end of period (USD per share) | $ / shares | $ 12.28 |
Performance-Based | |
Number of Shares | |
Outstanding, beginning of period (in shares) | 0 |
Granted (in shares) | 394,752 |
Vested (in shares) | 0 |
Forfeited (in shares) | 0 |
Outstanding, end of period (in shares) | 394,752 |
Weighted Average Grant Date Fair Value per Share | |
Weighted average grant date fair value, granted (USD per share) | $ / shares | $ 9.93 |
Weighted average grant date fair value, end of period (USD per share) | $ / shares | $ 12.28 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Contingency [Line Items] | ||
Effective income tax rate (as percent) | 25.90% | 31.50% |
Tax Cuts and Jobs Act of 2017, incomplete accounting, transition tax for accumulated foreign earnings, additional amounts, provisional income tax expense | $ 1.2 | |
Tax Cuts and Jobs Act of 2017, global intangible low-taxed income, provisional income tax expense (reversal) | $ 0.4 | $ 0.6 |
Undistributed foreign earnings | 165.8 | |
Canada Revenue Agency | Pro forma | ||
Income Tax Contingency [Line Items] | ||
Expected tax if earnings were distributed to the U.S. | $ 8.3 |
FINANCIAL INSTRUMENTS - Summary
FINANCIAL INSTRUMENTS - Summary of Assets and Liabilities Not Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Aug. 31, 2018 | Aug. 13, 2018 |
Financial assets: | ||||
Restricted cash | $ 34,319 | $ 25,439 | ||
Carrying Value | ||||
Financial assets: | ||||
Cash | 82,859 | 61,175 | ||
Restricted cash | 34,319 | 25,439 | ||
Loans receivable, net | 458,893 | 497,534 | ||
Investment in Cognical | 6,558 | 6,558 | ||
Financial liabilities: | ||||
Liability for losses on CSO lender-owned consumer loans | 8,662 | 12,007 | ||
Carrying Value | 8.25% Senior Secured Notes (due 2025) | ||||
Financial liabilities: | ||||
Debt | 677,153 | 676,661 | ||
Carrying Value | Non-Recourse Canada SPV Facility | ||||
Financial liabilities: | ||||
Debt | 88,915 | 107,479 | ||
Carrying Value | Senior Revolver | ||||
Financial liabilities: | ||||
Debt | 20,000 | |||
Estimated Fair Value | ||||
Financial assets: | ||||
Cash | 82,859 | 61,175 | ||
Restricted cash | 34,319 | 25,439 | ||
Loans receivable, net | 458,893 | 497,534 | ||
Investment in Cognical | 6,558 | 6,558 | ||
Financial liabilities: | ||||
Liability for losses on CSO lender-owned consumer loans | 8,662 | 12,007 | ||
Estimated Fair Value | 8.25% Senior Secured Notes (due 2025) | ||||
Financial liabilities: | ||||
Debt | 580,659 | 531,179 | ||
Estimated Fair Value | Non-Recourse Canada SPV Facility | ||||
Financial liabilities: | ||||
Debt | 92,718 | 111,335 | ||
Estimated Fair Value | Senior Revolver | ||||
Financial liabilities: | ||||
Debt | 20,000 | |||
Estimated Fair Value | Level 1 | ||||
Financial assets: | ||||
Cash | 82,859 | 61,175 | ||
Restricted cash | 34,319 | 25,439 | ||
Loans receivable, net | 0 | 0 | ||
Investment in Cognical | 0 | 0 | ||
Financial liabilities: | ||||
Liability for losses on CSO lender-owned consumer loans | 0 | 0 | ||
Estimated Fair Value | Level 1 | 8.25% Senior Secured Notes (due 2025) | ||||
Financial liabilities: | ||||
Debt | 0 | 0 | ||
Estimated Fair Value | Level 1 | Non-Recourse Canada SPV Facility | ||||
Financial liabilities: | ||||
Debt | 0 | 0 | ||
Estimated Fair Value | Level 1 | Senior Revolver | ||||
Financial liabilities: | ||||
Debt | 0 | |||
Estimated Fair Value | Level 2 | ||||
Financial assets: | ||||
Cash | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Loans receivable, net | 0 | 0 | ||
Investment in Cognical | 0 | 0 | ||
Financial liabilities: | ||||
Liability for losses on CSO lender-owned consumer loans | 0 | 0 | ||
Estimated Fair Value | Level 2 | 8.25% Senior Secured Notes (due 2025) | ||||
Financial liabilities: | ||||
Debt | 0 | 0 | ||
Estimated Fair Value | Level 2 | Non-Recourse Canada SPV Facility | ||||
Financial liabilities: | ||||
Debt | 0 | 0 | ||
Estimated Fair Value | Level 2 | Senior Revolver | ||||
Financial liabilities: | ||||
Debt | 0 | |||
Estimated Fair Value | Level 3 | ||||
Financial assets: | ||||
Cash | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Loans receivable, net | 458,893 | 497,534 | ||
Investment in Cognical | 6,558 | 6,558 | ||
Financial liabilities: | ||||
Liability for losses on CSO lender-owned consumer loans | 8,662 | 12,007 | ||
Estimated Fair Value | Level 3 | 8.25% Senior Secured Notes (due 2025) | ||||
Financial liabilities: | ||||
Debt | 580,659 | 531,179 | ||
Estimated Fair Value | Level 3 | Non-Recourse Canada SPV Facility | ||||
Financial liabilities: | ||||
Debt | $ 92,718 | 111,335 | ||
Estimated Fair Value | Level 3 | Senior Revolver | ||||
Financial liabilities: | ||||
Debt | $ 20,000 | |||
Senior Notes | 8.25% Senior Secured Notes (due 2025) | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Stated interest rate (as percent) | 8.25% | 8.25% | 8.25% | 8.25% |
FINANCIAL INSTRUMENTS - Narrati
FINANCIAL INSTRUMENTS - Narrative (Details) | Mar. 31, 2019 | Dec. 31, 2018 | Aug. 31, 2018 | Aug. 13, 2018 |
Senior Notes | 8.25% Senior Secured Notes | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Stated interest rate (as percent) | 8.25% | 8.25% | 8.25% | 8.25% |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) - Over-allotment option $ in Millions | Jan. 05, 2018USD ($)shares |
Subsidiary, Sale of Stock [Line Items] | |
Number of shares issued via sale of stock (in shares) | shares | 1,000,000 |
Proceeds received for the sale of stock | $ | $ 13.1 |
STOCKHOLDERS' EQUITY - Schedule
STOCKHOLDERS' EQUITY - Schedule of Stockholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, beginning period | $ (19,101) | $ 7,136 |
Net income from continuing operations | 28,673 | 24,913 |
Net income (loss) from discontinued operations | 8,375 | (1,621) |
Foreign currency translation adjustment | 16,695 | (2,910) |
Cash flow hedge expiration | 54 | |
Share based compensation expense | 2,172 | 1,842 |
Initial Public Offering, Net Proceeds (underwriter shares) | 13,136 | |
Proceeds from exercise of stock options | 40 | |
Common stock issued for RSU's vesting, net of shares withheld and withholding paid for employee taxes | (110) | |
Balance, ending period | $ 36,744 | $ 42,550 |
Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, beginning period (in shares) | 46,412,231 | 44,561,419 |
Balance, beginning period | $ 9 | $ 8 |
Initial Public Offering, Net Proceeds (underwriter shares) (in shares) | 1,000,000 | |
Initial Public Offering, Net Proceeds (underwriter shares) | $ 1 | |
Proceeds from exercise of stock options (in shares) | 7,888 | |
Common stock issued for RSU's vesting, net of shares withheld and withholding paid for employee taxes (in shares) | 11,170 | |
Balance, ending period (in shares) | 46,431,289 | 45,561,419 |
Balance, ending period | $ 9 | $ 9 |
Paid-in capital | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, beginning period | 60,015 | 46,079 |
Share based compensation expense | 2,172 | 1,842 |
Initial Public Offering, Net Proceeds (underwriter shares) | 13,135 | |
Proceeds from exercise of stock options | 40 | |
Common stock issued for RSU's vesting, net of shares withheld and withholding paid for employee taxes | (110) | |
Balance, ending period | 62,117 | 61,056 |
Retained Earnings (Deficit) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, beginning period | (18,065) | 3,988 |
Net income from continuing operations | 28,673 | 24,913 |
Net income (loss) from discontinued operations | 8,375 | (1,621) |
Balance, ending period | 18,983 | 27,280 |
AOCI | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, beginning period | (61,060) | (42,939) |
Foreign currency translation adjustment | 16,695 | (2,910) |
Cash flow hedge expiration | 54 | |
Balance, ending period | $ (44,365) | $ (45,795) |
EARNINGS PER SHARE - Summary of
EARNINGS PER SHARE - Summary of Basic Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net income from continuing operations | $ 28,673 | $ 24,913 |
Net income (loss) from discontinued operations | 8,375 | (1,621) |
Net income | $ 37,048 | $ 23,292 |
Weight average common shares - basic (in shares) | 46,424 | 45,506 |
Dilutive effect of stock options and restricted stock units (in shares) | 895 | 1,910 |
Weighted average common shares - diluted (in shares) | 47,319 | 47,416 |
Basic income (loss) per share: | ||
Continuing operations (in dollars per share) | $ 0.62 | $ 0.55 |
Discontinued operations (in dollars per share) | 0.18 | (0.04) |
Basic earnings per share (in dollars per share) | 0.80 | 0.51 |
Diluted income (loss) per share: | ||
Continuing operations (in dollars per share) | 0.61 | 0.53 |
Discontinued operations (in dollars per share) | 0.18 | (0.03) |
Diluted earnings per share (in dollars per share) | $ 0.79 | $ 0.50 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,400,000 | 0 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash paid for: | ||
Interest | $ 32,195 | $ 40,225 |
Income taxes | 1,456 | 4,431 |
Non-cash investing activities: | ||
Property and equipment accrued in accounts payable | $ 349 | $ 317 |
SEGMENT REPORTING - Narrative (
SEGMENT REPORTING - Narrative (Details) | 3 Months Ended |
Mar. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Number of operating segments | 2 |
SEGMENT REPORTING - Summary of
SEGMENT REPORTING - Summary of Financial Information by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Consolidated revenue | $ 277,939 | $ 250,843 | |
Consolidated gross margin | 105,497 | 105,846 | |
Consolidated operating profit | 38,719 | 36,380 | |
Consolidated expenditures for long-lived assets | 3,119 | 1,542 | |
Total gross loans receivable | 553,215 | $ 571,531 | |
U.S. | |||
Segment Reporting Information [Line Items] | |||
Consolidated revenue | 226,119 | 204,593 | |
Consolidated gross margin | 89,803 | 91,344 | |
Consolidated operating profit | 31,195 | 26,832 | |
Consolidated expenditures for long-lived assets | 2,430 | 788 | |
Total gross loans receivable | 321,534 | 361,473 | |
Canada | |||
Segment Reporting Information [Line Items] | |||
Consolidated revenue | 51,820 | 46,250 | |
Consolidated gross margin | 15,694 | 14,502 | |
Consolidated operating profit | 7,524 | 9,548 | |
Consolidated expenditures for long-lived assets | 689 | $ 754 | |
Total gross loans receivable | $ 231,681 | $ 210,058 |
SEGMENT REPORTING - Summary o_2
SEGMENT REPORTING - Summary of Long-lived Assets by Geographical Region (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net long-lived assets | $ 75,260 | $ 76,750 |
U.S. | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net long-lived assets | 46,360 | 47,918 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net long-lived assets | $ 28,900 | $ 28,832 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($)renewal_option | |
Operating lease original term of contract | 5 years |
Number of renewal terms | renewal_option | 2 |
Operating lease renewal term | 5 years |
Operating lease cost | $ 8.5 |
Operating lease payments | $ 8.6 |
Weighted average remaining lease term | 6 years 1 month 6 days |
Weighted average operating discount rate | 10.30% |
Third-Party | |
Operating lease cost | $ 7.6 |
Related-Party | |
Operating lease cost | $ 0.8 |
LEASES - Schedule of Future Min
LEASES - Schedule of Future Minimum Lease Payments (Details) $ in Thousands | Mar. 31, 2019USD ($) |
2019 | $ 25,986 |
2020 | 34,111 |
2021 | 33,793 |
2022 | 32,649 |
2023 | 25,710 |
Thereafter | 41,440 |
Total | 193,689 |
Less: Imputed interest | (50,252) |
Operating lease liabilities | 143,437 |
Third-Party | |
2019 | 23,222 |
2020 | 30,338 |
2021 | 29,918 |
2022 | 28,906 |
2023 | 24,411 |
Thereafter | 40,326 |
Total | 177,121 |
Less: Imputed interest | (46,823) |
Operating lease liabilities | 130,298 |
Related-Party | |
2019 | 2,764 |
2020 | 3,773 |
2021 | 3,875 |
2022 | 3,743 |
2023 | 1,299 |
Thereafter | 1,114 |
Total | 16,568 |
Less: Imputed interest | (3,429) |
Operating lease liabilities | $ 13,139 |
DISCONTINUED OPERATIONS - Sched
DISCONTINUED OPERATIONS - Schedules of Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Income Statement Disclosures | |||
Income from discontinued operations | $ 8,375 | $ (1,621) | |
Tax benefit from gain on disposal of discontinued operations | 47,423 | ||
ASSETS | |||
Assets from discontinued operations | 0 | $ 34,861 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Liabilities from discontinued operations | 0 | 8,882 | |
Cash Flow Disclosures | |||
Net cash (used in) provided by discontinued operating activities | (504) | 1,411 | |
Net cash used in discontinued investing activities | (14,213) | (3,782) | |
U.K. Segment | Discontinued Operations, Disposed of by Means Other than Sale | |||
Income Statement Disclosures | |||
Revenue | 6,957 | 10,915 | |
Provision for losses | 1,703 | 4,148 | |
Net revenue | 5,254 | 6,767 | |
Office | 246 | 528 | |
Other costs of providing services | 61 | 969 | |
Advertising | 775 | 1,871 | |
Cost of providing services | 1,082 | 3,368 | |
Gross margin | 4,172 | 3,399 | |
Corporate, district and other | 3,810 | 5,025 | |
Interest income | (4) | (5) | |
Total operating expense | 3,806 | 5,020 | |
Income (loss) from operations of discontinued operations | 366 | (1,621) | |
Gain on disposal of discontinued operations, net of estimated income tax benefit of $47,423 | 8,009 | 0 | |
Income from discontinued operations | 8,375 | (1,621) | |
ASSETS | |||
Cash | 0 | 9,859 | |
Restricted cash | 0 | 3,384 | |
Gross loans receivable | 0 | 25,256 | |
Less: allowance for loan losses | 0 | (5,387) | |
Loans receivable, net | 0 | 19,869 | |
Prepaid expenses and other | 0 | 1,482 | |
Other | 0 | 267 | |
Assets from discontinued operations | 0 | 34,861 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Accounts payable and accrued liabilities | 0 | 8,136 | |
Deferred revenue | 0 | 180 | |
Accrued interest | 0 | (5) | |
Deferred rent | 0 | 149 | |
Other long-term liabilities | 0 | 422 | |
Liabilities from discontinued operations | 0 | $ 8,882 | |
Cash Flow Disclosures | |||
Net cash (used in) provided by discontinued operating activities | (504) | 1,411 | |
Net cash used in discontinued investing activities | (14,213) | (3,782) | |
Net cash used in discontinued financing activities | $ 0 | $ 0 |
CONDENSED CONSOLIDATING FINAN_3
CONDENSED CONSOLIDATING FINANCIAL INFORMATION - Additional Information (Details) | Aug. 13, 2018 | Aug. 02, 2018CAD ($) | Mar. 07, 2018USD ($) | Aug. 31, 2018CAD ($) | Mar. 31, 2018USD ($) | Nov. 30, 2017USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Aug. 31, 2018USD ($) | Feb. 28, 2017USD ($) |
Debt Instrument [Line Items] | ||||||||||
Long-term debt | $ 766,068,000 | $ 804,140,000 | ||||||||
12% Senior Secured Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate (as percent) | 12.00% | |||||||||
12% Senior Secured Notes | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate (as percent) | 12.00% | 12.00% | ||||||||
Notice of redemption, amount | $ 77,500,000 | |||||||||
Redemption price, percentage (as percent) | 112.00% | |||||||||
Debt instrument, face amount | $ 135,000,000 | $ 470,000,000 | ||||||||
Long-term debt | $ 527,500,000 | |||||||||
8.25% Senior Secured Notes | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate (as percent) | 8.25% | 8.25% | 8.25% | 8.25% | 8.25% | |||||
Debt instrument, face amount | $ 690,000,000 | |||||||||
Long-term debt | $ 677,153,000 | $ 676,661,000 | ||||||||
Debt instrument, term | 5 years | |||||||||
Non-Recourse Canada SPV Facility | Revolving Credit Facility | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate (as percent) | 6.75% | |||||||||
Long-term debt | $ 88,915,000 | $ 107,479,000 | ||||||||
Debt instrument, term | 4 years | 4 years | ||||||||
Line of credit facility, initial borrowing capacity | $ 175,000,000 | $ 175,000,000 | ||||||||
Credit facility, expansion capacity | $ 250,000,000 | $ 250,000,000 | ||||||||
CFTC | 12% Senior Secured Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 470,000,000 | |||||||||
Stated interest rate (as percent) | 12.00% | |||||||||
CFTC | 12% Senior Secured Notes | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notice of redemption, amount | $ 77,500,000 | |||||||||
Redemption price, percentage (as percent) | 112.00% | |||||||||
CFTC | 12% Senior Secured Notes | Additional Notes Offering | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | 135,000,000 | |||||||||
Dividends paid to CURO Group Holdings Corp. | $ 140,000,000 | |||||||||
CFTC | 10.75% Senior Secured Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate (as percent) | 10.75% | |||||||||
CFTC | Payments on 12.00% Senior Secured Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate (as percent) | 12.00% |
CONDENSED CONSOLIDATING FINAN_4
CONDENSED CONSOLIDATING FINANCIAL INFORMATION - Balance Sheets (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Assets: | ||||
Cash | $ 82,859 | $ 61,175 | ||
Restricted cash | 34,319 | 25,439 | ||
Loans receivable, net | 458,893 | 497,534 | ||
Right of use asset - operating leases | 135,405 | |||
Deferred income taxes | 5,014 | 1,534 | ||
Income taxes receivable | 40,872 | 16,741 | ||
Prepaid expenses and other | 36,511 | 43,588 | ||
Property and equipment, net | 75,260 | 76,750 | ||
Goodwill | 119,878 | 119,281 | ||
Other intangibles, net | 29,968 | 29,784 | ||
Intercompany receivable | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Other | 15,151 | 12,930 | ||
Assets from discontinued operations | 0 | 34,861 | ||
Total Assets | 1,034,130 | 919,617 | ||
Liabilities and Stockholders' equity: | ||||
Accounts payable and accrued liabilities | 52,042 | 49,146 | ||
Deferred revenue | 7,851 | 9,483 | ||
Lease liability - operating leases | 143,412 | |||
Income taxes payable | 4,425 | 1,579 | ||
Accrued interest | 5,593 | 20,904 | ||
Payable to CURO Holdings Corp. | 0 | 0 | ||
CSO liability for losses | 8,662 | 12,007 | $ 10,412 | $ 17,795 |
Deferred rent | 10,851 | |||
Long-term debt (excluding current maturities) | 766,068 | 804,140 | ||
Subordinated stockholder debt | 2,243 | 2,196 | ||
Intercompany payable | 0 | 0 | ||
Other long-term liabilities | 6,686 | 5,800 | ||
Deferred tax liabilities | 404 | 13,730 | ||
Liabilities from discontinued operations | 0 | 8,882 | ||
Total Liabilities | 997,386 | 938,718 | ||
Stockholder’s equity | 36,744 | (19,101) | $ 42,550 | $ 7,136 |
Total Liabilities and Stockholders' Equity | 1,034,130 | 919,617 | ||
Eliminations | ||||
Assets: | ||||
Cash | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Loans receivable, net | 0 | 0 | ||
Right of use asset - operating leases | 0 | |||
Deferred income taxes | 0 | 0 | ||
Income taxes receivable | 0 | 0 | ||
Prepaid expenses and other | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangibles, net | 0 | 0 | ||
Intercompany receivable | (74,174) | (77,009) | ||
Investment in subsidiaries | 36,075 | 101,665 | ||
Other | 0 | 0 | ||
Assets from discontinued operations | 32,455 | |||
Total Assets | (38,099) | 57,111 | ||
Liabilities and Stockholders' equity: | ||||
Accounts payable and accrued liabilities | 0 | 0 | ||
Deferred revenue | 0 | 0 | ||
Lease liability - operating leases | 0 | |||
Income taxes payable | 0 | 0 | ||
Accrued interest | 0 | 0 | ||
Payable to CURO Holdings Corp. | 0 | 0 | ||
CSO liability for losses | 0 | 0 | ||
Deferred rent | 0 | |||
Long-term debt (excluding current maturities) | 0 | 0 | ||
Subordinated stockholder debt | 0 | 0 | ||
Intercompany payable | (74,174) | (44,554) | ||
Other long-term liabilities | 0 | 0 | ||
Deferred tax liabilities | 0 | 0 | ||
Liabilities from discontinued operations | 0 | |||
Total Liabilities | (74,174) | (44,554) | ||
Stockholder’s equity | 36,075 | 101,665 | ||
Total Liabilities and Stockholders' Equity | (38,099) | 57,111 | ||
Subsidiary Guarantors | Reportable Legal Entities | ||||
Assets: | ||||
Cash | 62,729 | 42,403 | ||
Restricted cash | 15,775 | 9,993 | ||
Loans receivable, net | 254,622 | 304,542 | ||
Right of use asset - operating leases | 74,840 | |||
Deferred income taxes | (6,445) | 0 | ||
Income taxes receivable | 0 | 7,190 | ||
Prepaid expenses and other | 30,459 | 37,866 | ||
Property and equipment, net | 46,360 | 47,918 | ||
Goodwill | 91,131 | 91,131 | ||
Other intangibles, net | 8,165 | 8,418 | ||
Intercompany receivable | 74,174 | 77,009 | ||
Investment in subsidiaries | 0 | 0 | ||
Other | 14,473 | 12,253 | ||
Assets from discontinued operations | 0 | |||
Total Assets | 666,283 | 638,723 | ||
Liabilities and Stockholders' equity: | ||||
Accounts payable and accrued liabilities | 39,420 | 38,240 | ||
Deferred revenue | 4,574 | 5,981 | ||
Lease liability - operating leases | 82,667 | |||
Income taxes payable | (26,737) | 0 | ||
Accrued interest | 2 | 149 | ||
Payable to CURO Holdings Corp. | 738,730 | 768,345 | ||
CSO liability for losses | 8,662 | 12,007 | ||
Deferred rent | 9,559 | |||
Long-term debt (excluding current maturities) | 0 | 20,000 | ||
Subordinated stockholder debt | 0 | 0 | ||
Intercompany payable | 0 | 0 | ||
Other long-term liabilities | 5,942 | 4,967 | ||
Deferred tax liabilities | (4,171) | 15,175 | ||
Liabilities from discontinued operations | 0 | |||
Total Liabilities | 849,089 | 874,423 | ||
Stockholder’s equity | (182,806) | (235,700) | ||
Total Liabilities and Stockholders' Equity | 666,283 | 638,723 | ||
Subsidiary Non-Guarantors | Reportable Legal Entities | ||||
Assets: | ||||
Cash | 20,130 | 18,772 | ||
Restricted cash | 3,084 | 2,606 | ||
Loans receivable, net | 46,403 | 56,805 | ||
Right of use asset - operating leases | 60,565 | |||
Deferred income taxes | 5,014 | 1,534 | ||
Income taxes receivable | 0 | 0 | ||
Prepaid expenses and other | 6,052 | 5,722 | ||
Property and equipment, net | 28,900 | 28,832 | ||
Goodwill | 28,747 | 28,150 | ||
Other intangibles, net | 21,803 | 21,366 | ||
Intercompany receivable | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Other | 678 | 677 | ||
Assets from discontinued operations | 2,406 | |||
Total Assets | 221,376 | 166,870 | ||
Liabilities and Stockholders' equity: | ||||
Accounts payable and accrued liabilities | 2,886 | 5,734 | ||
Deferred revenue | 3,233 | 3,462 | ||
Lease liability - operating leases | 60,745 | |||
Income taxes payable | 4,425 | 1,579 | ||
Accrued interest | 0 | 0 | ||
Payable to CURO Holdings Corp. | 0 | 0 | ||
CSO liability for losses | 0 | 0 | ||
Deferred rent | 1,292 | |||
Long-term debt (excluding current maturities) | 0 | 0 | ||
Subordinated stockholder debt | 2,243 | 2,196 | ||
Intercompany payable | 337 | 224 | ||
Other long-term liabilities | 744 | 833 | ||
Deferred tax liabilities | 0 | 0 | ||
Liabilities from discontinued operations | 8,882 | |||
Total Liabilities | 74,613 | 24,202 | ||
Stockholder’s equity | 146,763 | 142,668 | ||
Total Liabilities and Stockholders' Equity | 221,376 | 166,870 | ||
Canada SPV | Reportable Legal Entities | ||||
Assets: | ||||
Cash | 0 | 0 | ||
Restricted cash | 15,460 | 12,840 | ||
Loans receivable, net | 157,868 | 136,187 | ||
Right of use asset - operating leases | 0 | |||
Deferred income taxes | 0 | 0 | ||
Income taxes receivable | 0 | 0 | ||
Prepaid expenses and other | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangibles, net | 0 | 0 | ||
Intercompany receivable | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Other | 0 | 0 | ||
Assets from discontinued operations | 0 | |||
Total Assets | 173,328 | 149,027 | ||
Liabilities and Stockholders' equity: | ||||
Accounts payable and accrued liabilities | 9,717 | 4,980 | ||
Deferred revenue | 44 | 40 | ||
Lease liability - operating leases | 0 | |||
Income taxes payable | 0 | 0 | ||
Accrued interest | 847 | 831 | ||
Payable to CURO Holdings Corp. | 0 | 0 | ||
CSO liability for losses | 0 | 0 | ||
Deferred rent | 0 | |||
Long-term debt (excluding current maturities) | 88,915 | 107,479 | ||
Subordinated stockholder debt | 0 | 0 | ||
Intercompany payable | 73,837 | 44,330 | ||
Other long-term liabilities | 0 | 0 | ||
Deferred tax liabilities | 0 | 0 | ||
Liabilities from discontinued operations | 0 | |||
Total Liabilities | 173,360 | 157,660 | ||
Stockholder’s equity | (32) | (8,633) | ||
Total Liabilities and Stockholders' Equity | 173,328 | 149,027 | ||
CURO | ||||
Assets: | ||||
Cash | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Loans receivable, net | 0 | 0 | ||
Right of use asset - operating leases | 0 | |||
Deferred income taxes | 6,445 | 0 | ||
Income taxes receivable | 40,872 | 9,551 | ||
Prepaid expenses and other | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangibles, net | 0 | 0 | ||
Intercompany receivable | 0 | 0 | ||
Investment in subsidiaries | (36,075) | (101,665) | ||
Other | 0 | 0 | ||
Assets from discontinued operations | 0 | |||
Total Assets | 11,242 | (92,114) | ||
Liabilities and Stockholders' equity: | ||||
Accounts payable and accrued liabilities | 19 | 192 | ||
Deferred revenue | 0 | 0 | ||
Lease liability - operating leases | 0 | |||
Income taxes payable | 26,737 | 0 | ||
Accrued interest | 4,744 | 19,924 | ||
Payable to CURO Holdings Corp. | (738,730) | (768,345) | ||
CSO liability for losses | 0 | 0 | ||
Deferred rent | 0 | |||
Long-term debt (excluding current maturities) | 677,153 | 676,661 | ||
Subordinated stockholder debt | 0 | 0 | ||
Intercompany payable | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Deferred tax liabilities | 4,575 | (1,445) | ||
Liabilities from discontinued operations | 0 | |||
Total Liabilities | (25,502) | (73,013) | ||
Stockholder’s equity | 36,744 | (19,101) | ||
Total Liabilities and Stockholders' Equity | $ 11,242 | $ (92,114) |
CONDENSED CONSOLIDATING FINAN_5
CONDENSED CONSOLIDATING FINANCIAL INFORMATION - Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Condensed Income Statements, Captions [Line Items] | ||
Revenue | $ 277,939 | $ 250,843 |
Provision for losses | 102,385 | 76,883 |
Net revenue | 175,554 | 173,960 |
Cost of providing services | ||
Salaries and benefits | 28,701 | 26,918 |
Occupancy | 14,237 | 13,427 |
Office | 5,113 | 6,453 |
Other store operating expenses | 14,220 | 13,431 |
Advertising | 7,786 | 7,885 |
Total cost of providing services | 70,057 | 68,114 |
Gross margin | 105,497 | 105,846 |
Operating (income) expense: | ||
Corporate, district and other expenses | 49,088 | 35,429 |
Intercompany management fee | 0 | 0 |
Interest expense | 17,690 | 22,354 |
Intercompany interest (income) expense | 0 | 0 |
Loss on extinguishment of debt | 0 | 11,683 |
Total operating expense | 66,778 | 69,466 |
Income from continuing operations before income taxes | 38,719 | 36,380 |
Provision for income taxes | 10,046 | 11,467 |
Net income from continuing operations | 28,673 | 24,913 |
Net income (loss) from discontinued operations | 8,375 | (1,621) |
Net income | 37,048 | 23,292 |
Equity in net income (loss) of subsidiaries | 37,048 | 23,292 |
CFTC | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | 0 |
CURO Intermediate | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | |
Subsidiary Guarantors | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | 0 |
Subsidiary Non-Guarantors | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | 0 |
SPV Subs | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | 0 |
Subsidiaries | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenue | 250,843 | |
Provision for losses | 76,883 | |
Net revenue | 173,960 | |
Cost of providing services | ||
Salaries and benefits | 26,918 | |
Occupancy | 13,427 | |
Office | 6,453 | |
Other store operating expenses | 13,431 | |
Advertising | 7,885 | |
Total cost of providing services | 68,114 | |
Gross margin | 105,846 | |
Operating (income) expense: | ||
Corporate, district and other expenses | 33,374 | |
Intercompany management fee | 0 | |
Interest expense | 22,354 | |
Intercompany interest (income) expense | 0 | |
Loss on extinguishment of debt | 11,683 | |
Total operating expense | 67,411 | |
Income from continuing operations before income taxes | 38,435 | |
Provision for income taxes | 12,000 | |
Net income from continuing operations | 26,435 | |
Net income (loss) from discontinued operations | (1,621) | |
Net income | 24,814 | |
Equity in net income (loss) of subsidiaries | 24,814 | |
Subsidiaries | CFTC | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | |
Subsidiaries | CURO Intermediate | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | |
Subsidiaries | Subsidiary Guarantors | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | |
Subsidiaries | Subsidiary Non-Guarantors | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | |
Subsidiaries | SPV Subs | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | |
CURO | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenue | 0 | 0 |
Provision for losses | 0 | 0 |
Net revenue | 0 | 0 |
Cost of providing services | ||
Salaries and benefits | 0 | 0 |
Occupancy | 0 | 0 |
Office | 0 | 0 |
Other store operating expenses | 0 | 0 |
Advertising | 0 | 0 |
Total cost of providing services | 0 | 0 |
Gross margin | 0 | 0 |
Operating (income) expense: | ||
Corporate, district and other expenses | 2,342 | 2,055 |
Intercompany management fee | 0 | 0 |
Interest expense | 14,438 | 0 |
Intercompany interest (income) expense | 0 | 0 |
Loss on extinguishment of debt | 0 | |
Total operating expense | 16,780 | 2,055 |
Income from continuing operations before income taxes | (16,780) | (2,055) |
Provision for income taxes | (5,008) | (533) |
Net income from continuing operations | (11,772) | (1,522) |
Net income (loss) from discontinued operations | 0 | 0 |
Net income | (11,772) | (1,522) |
Equity in net income (loss) of subsidiaries | 37,048 | 23,292 |
CURO | CFTC | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 48,820 | 24,814 |
CURO | CURO Intermediate | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | |
CURO | Subsidiary Guarantors | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | 0 |
CURO | Subsidiary Non-Guarantors | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | 0 |
CURO | SPV Subs | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | 0 |
Reportable Legal Entities | Subsidiary Guarantors | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenue | 226,119 | 128,408 |
Provision for losses | 84,980 | 35,769 |
Net revenue | 141,139 | 92,639 |
Cost of providing services | ||
Salaries and benefits | 19,951 | 18,018 |
Occupancy | 8,010 | 7,646 |
Office | 3,889 | 5,582 |
Other store operating expenses | 13,132 | 12,030 |
Advertising | 6,354 | 5,159 |
Total cost of providing services | 51,336 | 48,435 |
Gross margin | 89,803 | 44,204 |
Operating (income) expense: | ||
Corporate, district and other expenses | 41,538 | 27,992 |
Intercompany management fee | (3,403) | (6,443) |
Interest expense | 290 | (112) |
Intercompany interest (income) expense | (1,071) | (79) |
Loss on extinguishment of debt | 0 | |
Total operating expense | 37,354 | 21,358 |
Income from continuing operations before income taxes | 52,449 | 22,846 |
Provision for income taxes | 14,020 | (1,585) |
Net income from continuing operations | 38,429 | 24,431 |
Net income (loss) from discontinued operations | 0 | 0 |
Net income | 38,429 | 24,431 |
Equity in net income (loss) of subsidiaries | 87,249 | 24,431 |
Reportable Legal Entities | Subsidiary Guarantors | CFTC | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | 0 |
Reportable Legal Entities | Subsidiary Guarantors | CURO Intermediate | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | |
Reportable Legal Entities | Subsidiary Guarantors | Subsidiary Guarantors | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 38,429 | 0 |
Reportable Legal Entities | Subsidiary Guarantors | Subsidiary Non-Guarantors | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 1,575 | 0 |
Reportable Legal Entities | Subsidiary Guarantors | SPV Subs | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 8,816 | 0 |
Reportable Legal Entities | Subsidiary Non-Guarantors | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenue | 26,774 | 46,250 |
Provision for losses | 4,099 | 12,550 |
Net revenue | 22,675 | 33,700 |
Cost of providing services | ||
Salaries and benefits | 8,750 | 8,900 |
Occupancy | 6,227 | 5,781 |
Office | 1,224 | 871 |
Other store operating expenses | 1,088 | 920 |
Advertising | 1,432 | 2,726 |
Total cost of providing services | 18,721 | 19,198 |
Gross margin | 3,954 | 14,502 |
Operating (income) expense: | ||
Corporate, district and other expenses | 5,183 | 4,897 |
Intercompany management fee | 3,395 | 3,035 |
Interest expense | 71 | 57 |
Intercompany interest (income) expense | 1,071 | 880 |
Loss on extinguishment of debt | 0 | |
Total operating expense | 9,720 | 8,869 |
Income from continuing operations before income taxes | (5,766) | 5,633 |
Provision for income taxes | 1,034 | 1,929 |
Net income from continuing operations | (6,800) | 3,704 |
Net income (loss) from discontinued operations | 8,375 | (1,621) |
Net income | 1,575 | 2,083 |
Equity in net income (loss) of subsidiaries | 1,575 | 2,083 |
Reportable Legal Entities | Subsidiary Non-Guarantors | CFTC | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | 0 |
Reportable Legal Entities | Subsidiary Non-Guarantors | CURO Intermediate | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | |
Reportable Legal Entities | Subsidiary Non-Guarantors | Subsidiary Guarantors | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | 0 |
Reportable Legal Entities | Subsidiary Non-Guarantors | Subsidiary Non-Guarantors | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | 0 |
Reportable Legal Entities | Subsidiary Non-Guarantors | SPV Subs | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | 0 |
Reportable Legal Entities | Canada SPV | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenue | 25,046 | |
Provision for losses | 13,306 | |
Net revenue | 11,740 | |
Cost of providing services | ||
Salaries and benefits | 0 | |
Occupancy | 0 | |
Office | 0 | |
Other store operating expenses | 0 | |
Advertising | 0 | |
Total cost of providing services | 0 | |
Gross margin | 11,740 | |
Operating (income) expense: | ||
Corporate, district and other expenses | 25 | |
Intercompany management fee | 8 | |
Interest expense | 2,891 | |
Intercompany interest (income) expense | 0 | |
Total operating expense | 2,924 | |
Income from continuing operations before income taxes | 8,816 | |
Provision for income taxes | 0 | |
Net income from continuing operations | 8,816 | |
Net income (loss) from discontinued operations | 0 | |
Net income | 8,816 | |
Equity in net income (loss) of subsidiaries | 8,816 | |
Reportable Legal Entities | Canada SPV | CFTC | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | |
Reportable Legal Entities | Canada SPV | Subsidiary Guarantors | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | |
Reportable Legal Entities | Canada SPV | Subsidiary Non-Guarantors | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | |
Reportable Legal Entities | Canada SPV | SPV Subs | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | |
Reportable Legal Entities | SPV Subs | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenue | 76,185 | |
Provision for losses | 28,564 | |
Net revenue | 47,621 | |
Cost of providing services | ||
Salaries and benefits | 0 | |
Occupancy | 0 | |
Office | 0 | |
Other store operating expenses | 481 | |
Advertising | 0 | |
Total cost of providing services | 481 | |
Gross margin | 47,140 | |
Operating (income) expense: | ||
Corporate, district and other expenses | 30 | |
Intercompany management fee | 3,408 | |
Interest expense | 4,087 | |
Intercompany interest (income) expense | 0 | |
Loss on extinguishment of debt | 0 | |
Total operating expense | 7,525 | |
Income from continuing operations before income taxes | 39,615 | |
Provision for income taxes | 0 | |
Net income from continuing operations | 39,615 | |
Net income (loss) from discontinued operations | 0 | |
Net income | 39,615 | |
Equity in net income (loss) of subsidiaries | 39,615 | |
Reportable Legal Entities | SPV Subs | CFTC | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | |
Reportable Legal Entities | SPV Subs | CURO Intermediate | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | |
Reportable Legal Entities | SPV Subs | Subsidiary Guarantors | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | |
Reportable Legal Entities | SPV Subs | Subsidiary Non-Guarantors | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | |
Reportable Legal Entities | SPV Subs | SPV Subs | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | |
Eliminations | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenue | 0 | 0 |
Provision for losses | 0 | 0 |
Net revenue | 0 | 0 |
Cost of providing services | ||
Salaries and benefits | 0 | 0 |
Occupancy | 0 | 0 |
Office | 0 | 0 |
Other store operating expenses | 0 | 0 |
Advertising | 0 | 0 |
Total cost of providing services | 0 | 0 |
Gross margin | 0 | 0 |
Operating (income) expense: | ||
Corporate, district and other expenses | 0 | 0 |
Intercompany management fee | 0 | 0 |
Interest expense | 0 | 0 |
Intercompany interest (income) expense | 0 | 0 |
Loss on extinguishment of debt | 0 | |
Total operating expense | 0 | 0 |
Income from continuing operations before income taxes | 0 | 0 |
Provision for income taxes | 0 | 0 |
Net income from continuing operations | 0 | 0 |
Net income (loss) from discontinued operations | 0 | 0 |
Net income | 0 | 0 |
Equity in net income (loss) of subsidiaries | (97,640) | (24,814) |
Eliminations | CFTC | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | (48,820) | (24,814) |
Eliminations | CURO Intermediate | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | |
Eliminations | Subsidiary Guarantors | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | (38,429) | 0 |
Eliminations | Subsidiary Non-Guarantors | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | (1,575) | 0 |
Eliminations | SPV Subs | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | $ (8,816) | 0 |
Eliminations | Subsidiaries | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenue | 0 | |
Provision for losses | 0 | |
Net revenue | 0 | |
Cost of providing services | ||
Salaries and benefits | 0 | |
Occupancy | 0 | |
Office | 0 | |
Other store operating expenses | 0 | |
Advertising | 0 | |
Total cost of providing services | 0 | |
Gross margin | 0 | |
Operating (income) expense: | ||
Corporate, district and other expenses | 0 | |
Intercompany management fee | 0 | |
Interest expense | 0 | |
Intercompany interest (income) expense | 0 | |
Loss on extinguishment of debt | 0 | |
Total operating expense | 0 | |
Income from continuing operations before income taxes | 0 | |
Provision for income taxes | 0 | |
Net income from continuing operations | 0 | |
Net income (loss) from discontinued operations | 0 | |
Net income | 0 | |
Equity in net income (loss) of subsidiaries | (50,047) | |
Eliminations | Subsidiaries | CFTC | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | |
Eliminations | Subsidiaries | CURO Intermediate | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 17,703 | |
Eliminations | Subsidiaries | Subsidiary Guarantors | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | (24,431) | |
Eliminations | Subsidiaries | Subsidiary Non-Guarantors | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | (3,704) | |
Eliminations | Subsidiaries | SPV Subs | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | (39,615) | |
CFTC | Reportable Legal Entities | Subsidiary Issuer | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenue | 0 | |
Provision for losses | 0 | |
Net revenue | 0 | |
Cost of providing services | ||
Salaries and benefits | 0 | |
Occupancy | 0 | |
Office | 0 | |
Other store operating expenses | 0 | |
Advertising | 0 | |
Total cost of providing services | 0 | |
Gross margin | 0 | |
Operating (income) expense: | ||
Corporate, district and other expenses | 448 | |
Intercompany management fee | 0 | |
Interest expense | 18,322 | |
Intercompany interest (income) expense | 0 | |
Loss on extinguishment of debt | 11,683 | |
Total operating expense | 30,453 | |
Income from continuing operations before income taxes | (30,453) | |
Provision for income taxes | (6,841) | |
Net income from continuing operations | (23,612) | |
Net income (loss) from discontinued operations | 0 | |
Net income | (23,612) | |
Equity in net income (loss) of subsidiaries | 26,435 | |
CFTC | Reportable Legal Entities | Subsidiary Issuer | CFTC | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | |
CFTC | Reportable Legal Entities | Subsidiary Issuer | CURO Intermediate | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | (17,703) | |
CFTC | Reportable Legal Entities | Subsidiary Issuer | Subsidiary Guarantors | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 24,431 | |
CFTC | Reportable Legal Entities | Subsidiary Issuer | Subsidiary Non-Guarantors | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 3,704 | |
CFTC | Reportable Legal Entities | Subsidiary Issuer | SPV Subs | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 39,615 | |
CURO Intermediate | Reportable Legal Entities | Subsidiary Issuer | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenue | 0 | |
Provision for losses | 0 | |
Net revenue | 0 | |
Cost of providing services | ||
Salaries and benefits | 0 | |
Occupancy | 0 | |
Office | 0 | |
Other store operating expenses | 0 | |
Advertising | 0 | |
Total cost of providing services | 0 | |
Gross margin | 0 | |
Operating (income) expense: | ||
Corporate, district and other expenses | 7 | |
Intercompany management fee | 0 | |
Interest expense | 0 | |
Intercompany interest (income) expense | (801) | |
Loss on extinguishment of debt | 0 | |
Total operating expense | (794) | |
Income from continuing operations before income taxes | 794 | |
Provision for income taxes | 18,497 | |
Net income from continuing operations | (17,703) | |
Net income (loss) from discontinued operations | 0 | |
Net income | (17,703) | |
Equity in net income (loss) of subsidiaries | (17,703) | |
CURO Intermediate | Reportable Legal Entities | Subsidiary Issuer | CFTC | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | |
CURO Intermediate | Reportable Legal Entities | Subsidiary Issuer | CURO Intermediate | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | |
CURO Intermediate | Reportable Legal Entities | Subsidiary Issuer | Subsidiary Guarantors | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | |
CURO Intermediate | Reportable Legal Entities | Subsidiary Issuer | Subsidiary Non-Guarantors | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | 0 | |
CURO Intermediate | Reportable Legal Entities | Subsidiary Issuer | SPV Subs | ||
Operating (income) expense: | ||
Equity in net income (loss) of subsidiaries | $ 0 |
CONDENSED CONSOLIDATING FINAN_6
CONDENSED CONSOLIDATING FINANCIAL INFORMATION - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Aug. 02, 2018 | ||
Cash flows from operating activities | ||||
Net cash provided by (used in) continuing operating activities | $ 140,999 | $ 122,743 | ||
Net cash (used in) provided by discontinued operating activities | (504) | 1,411 | ||
Cash flows from investing activities | ||||
Purchase of property, equipment and software | (3,119) | (1,542) | ||
Originations of loans, net | (64,947) | (56,353) | ||
Investment in Cognical Holdings | (1,568) | (958) | ||
Net cash used in continuing investing activities | (69,634) | (58,853) | ||
Net cash used in discontinued investing activities | (14,213) | (3,782) | ||
Cash flows from financing activities | ||||
Payments to net share settle RSUs | (37) | |||
Net proceeds from issuance of common stock | 0 | 13,135 | ||
Payments on 12.00% Senior Secured Notes | (77,500) | |||
Proceeds from exercise of stock options | 40 | 0 | ||
Payments of call premiums from early debt extinguishments | (9,300) | |||
Debt issuance costs paid | (199) | (71) | ||
Net cash used in financing activities | [1] | (41,265) | (83,255) | |
Effect of exchange rate changes on cash and restricted cash | 1,938 | (4,360) | ||
Net increase (decrease) in cash and restricted cash | 17,321 | (26,096) | ||
Cash and restricted cash at beginning of period | 99,857 | 174,491 | ||
Cash and restricted cash at end of period | 117,178 | 148,395 | ||
Non-Recourse Canada SPV Facility | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 3,762 | |||
Payments on credit facilities | (24,831) | 0 | ||
Senior Revolver | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 30,478 | |||
Payments on credit facilities | (50,478) | |||
Revolving Credit Facility | Non-Recourse U.S. SPV Facility | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 0 | 3,000 | ||
Payments on credit facilities | 0 | (12,519) | ||
Revolving Credit Facility | Non-Recourse Canada SPV Facility | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 3,762 | 0 | ||
Revolving Credit Facility | Non-Recourse Canada SPV Facility | Line of Credit | ||||
Cash flows from financing activities | ||||
Stated interest rate (as percent) | 6.75% | |||
Revolving Credit Facility | Senior Revolver | Line of Credit | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 30,478 | 10,000 | ||
Payments on credit facilities | (50,478) | (10,000) | ||
Eliminations | ||||
Cash flows from operating activities | ||||
Net cash provided by (used in) continuing operating activities | 246 | |||
Net cash (used in) provided by discontinued operating activities | 0 | |||
Cash flows from investing activities | ||||
Purchase of property, equipment and software | 0 | |||
Originations of loans, net | 0 | |||
Investment in Cognical Holdings | 0 | |||
Net cash used in continuing investing activities | 0 | |||
Net cash used in discontinued investing activities | 0 | |||
Cash flows from financing activities | ||||
Payments to net share settle RSUs | 0 | |||
Proceeds from exercise of stock options | 0 | |||
Debt issuance costs paid | 0 | |||
Net cash used in financing activities | 0 | |||
Effect of exchange rate changes on cash and restricted cash | (246) | |||
Net increase (decrease) in cash and restricted cash | 0 | |||
Cash and restricted cash at beginning of period | 0 | |||
Cash and restricted cash at end of period | 0 | |||
Eliminations | Non-Recourse Canada SPV Facility | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 0 | |||
Payments on credit facilities | 0 | |||
Eliminations | Senior Revolver | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 0 | |||
Payments on credit facilities | 0 | |||
Subsidiary Guarantors | Reportable Legal Entities | ||||
Cash flows from operating activities | ||||
Net cash provided by (used in) continuing operating activities | 88,291 | (5,956) | ||
Net cash (used in) provided by discontinued operating activities | 0 | 0 | ||
Cash flows from investing activities | ||||
Purchase of property, equipment and software | (2,430) | (788) | ||
Originations of loans, net | (38,226) | (28,277) | ||
Investment in Cognical Holdings | (1,568) | 0 | ||
Net cash used in continuing investing activities | (42,224) | (29,065) | ||
Net cash used in discontinued investing activities | 0 | 0 | ||
Cash flows from financing activities | ||||
Payments to net share settle RSUs | 0 | |||
Net proceeds from issuance of common stock | 0 | |||
Payments on 12.00% Senior Secured Notes | 0 | |||
Proceeds from exercise of stock options | 40 | |||
Payments of call premiums from early debt extinguishments | 0 | |||
Debt issuance costs paid | 0 | 0 | ||
Net cash used in financing activities | (19,960) | 0 | ||
Effect of exchange rate changes on cash and restricted cash | 0 | 0 | ||
Net increase (decrease) in cash and restricted cash | 26,107 | (35,021) | ||
Cash and restricted cash at beginning of period | 52,397 | 119,056 | ||
Cash and restricted cash at end of period | 78,504 | 84,035 | ||
Subsidiary Guarantors | Reportable Legal Entities | Non-Recourse Canada SPV Facility | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 0 | |||
Payments on credit facilities | 0 | |||
Subsidiary Guarantors | Reportable Legal Entities | Senior Revolver | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 15,000 | |||
Payments on credit facilities | (35,000) | |||
Subsidiary Guarantors | Reportable Legal Entities | Revolving Credit Facility | Non-Recourse U.S. SPV Facility | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 0 | |||
Payments on credit facilities | 0 | |||
Subsidiary Guarantors | Reportable Legal Entities | Revolving Credit Facility | Senior Revolver | Line of Credit | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 0 | |||
Payments on credit facilities | 0 | |||
Subsidiary Non-Guarantors | Reportable Legal Entities | ||||
Cash flows from operating activities | ||||
Net cash provided by (used in) continuing operating activities | (1,574) | 15,391 | ||
Net cash (used in) provided by discontinued operating activities | (504) | 6,958 | ||
Cash flows from investing activities | ||||
Purchase of property, equipment and software | (689) | (754) | ||
Originations of loans, net | 3,652 | (13,767) | ||
Investment in Cognical Holdings | 0 | 0 | ||
Net cash used in continuing investing activities | 2,963 | (14,521) | ||
Net cash used in discontinued investing activities | (14,213) | (3,782) | ||
Cash flows from financing activities | ||||
Payments to net share settle RSUs | 0 | |||
Net proceeds from issuance of common stock | 0 | |||
Payments on 12.00% Senior Secured Notes | 0 | |||
Proceeds from exercise of stock options | 0 | |||
Payments of call premiums from early debt extinguishments | 0 | |||
Debt issuance costs paid | 0 | 0 | ||
Net cash used in financing activities | 0 | 0 | ||
Effect of exchange rate changes on cash and restricted cash | 1,922 | (438) | ||
Net increase (decrease) in cash and restricted cash | (11,406) | 3,608 | ||
Cash and restricted cash at beginning of period | 34,620 | 48,484 | ||
Cash and restricted cash at end of period | 23,214 | 52,092 | ||
Subsidiary Non-Guarantors | Reportable Legal Entities | Non-Recourse Canada SPV Facility | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 0 | |||
Payments on credit facilities | 0 | |||
Subsidiary Non-Guarantors | Reportable Legal Entities | Senior Revolver | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 15,478 | |||
Payments on credit facilities | (15,478) | |||
Subsidiary Non-Guarantors | Reportable Legal Entities | Revolving Credit Facility | Non-Recourse U.S. SPV Facility | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 0 | |||
Payments on credit facilities | 0 | |||
Subsidiary Non-Guarantors | Reportable Legal Entities | Revolving Credit Facility | Senior Revolver | Line of Credit | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 0 | |||
Payments on credit facilities | 0 | |||
SPV Subs | Reportable Legal Entities | ||||
Cash flows from operating activities | ||||
Net cash provided by (used in) continuing operating activities | 29,225 | |||
Net cash (used in) provided by discontinued operating activities | 0 | |||
Cash flows from investing activities | ||||
Purchase of property, equipment and software | 0 | |||
Originations of loans, net | (14,309) | |||
Investment in Cognical Holdings | 0 | |||
Net cash used in continuing investing activities | (14,309) | |||
Net cash used in discontinued investing activities | 0 | |||
Cash flows from financing activities | ||||
Net proceeds from issuance of common stock | 0 | |||
Payments on 12.00% Senior Secured Notes | 0 | |||
Payments of call premiums from early debt extinguishments | 0 | |||
Debt issuance costs paid | 0 | |||
Net cash used in financing activities | (9,519) | |||
Effect of exchange rate changes on cash and restricted cash | 0 | |||
Net increase (decrease) in cash and restricted cash | 5,397 | |||
Cash and restricted cash at beginning of period | 6,871 | |||
Cash and restricted cash at end of period | 12,268 | |||
SPV Subs | Reportable Legal Entities | Revolving Credit Facility | Non-Recourse U.S. SPV Facility | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 3,000 | |||
Payments on credit facilities | (12,519) | |||
SPV Subs | Reportable Legal Entities | Revolving Credit Facility | Senior Revolver | Line of Credit | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 0 | |||
Payments on credit facilities | 0 | |||
Canada SPV | Reportable Legal Entities | ||||
Cash flows from operating activities | ||||
Net cash provided by (used in) continuing operating activities | 53,969 | |||
Net cash (used in) provided by discontinued operating activities | 0 | |||
Cash flows from investing activities | ||||
Purchase of property, equipment and software | 0 | |||
Originations of loans, net | (30,373) | |||
Investment in Cognical Holdings | 0 | |||
Net cash used in continuing investing activities | (30,373) | |||
Net cash used in discontinued investing activities | 0 | |||
Cash flows from financing activities | ||||
Payments to net share settle RSUs | 0 | |||
Proceeds from exercise of stock options | 0 | |||
Debt issuance costs paid | (169) | |||
Net cash used in financing activities | (21,238) | |||
Effect of exchange rate changes on cash and restricted cash | 262 | |||
Net increase (decrease) in cash and restricted cash | 2,620 | |||
Cash and restricted cash at beginning of period | 12,840 | |||
Cash and restricted cash at end of period | 15,460 | |||
Canada SPV | Reportable Legal Entities | Non-Recourse Canada SPV Facility | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 3,762 | |||
Payments on credit facilities | (24,831) | |||
Canada SPV | Reportable Legal Entities | Senior Revolver | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 0 | |||
Payments on credit facilities | 0 | |||
Subsidiaries | ||||
Cash flows from operating activities | ||||
Net cash provided by (used in) continuing operating activities | 135,958 | |||
Net cash (used in) provided by discontinued operating activities | 1,411 | |||
Cash flows from investing activities | ||||
Purchase of property, equipment and software | (1,542) | |||
Originations of loans, net | (56,353) | |||
Investment in Cognical Holdings | (958) | |||
Net cash used in continuing investing activities | (58,853) | |||
Net cash used in discontinued investing activities | (3,782) | |||
Cash flows from financing activities | ||||
Net proceeds from issuance of common stock | 0 | |||
Payments on 12.00% Senior Secured Notes | (77,500) | |||
Payments of call premiums from early debt extinguishments | (9,300) | |||
Debt issuance costs paid | (71) | |||
Net cash used in financing activities | (96,390) | |||
Effect of exchange rate changes on cash and restricted cash | (4,360) | |||
Net increase (decrease) in cash and restricted cash | (26,016) | |||
Cash and restricted cash at beginning of period | 174,411 | |||
Cash and restricted cash at end of period | 148,395 | |||
Subsidiaries | Revolving Credit Facility | Non-Recourse U.S. SPV Facility | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 3,000 | |||
Payments on credit facilities | (12,519) | |||
Subsidiaries | Revolving Credit Facility | Senior Revolver | Line of Credit | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 10,000 | |||
Payments on credit facilities | (10,000) | |||
Subsidiaries | Eliminations | ||||
Cash flows from operating activities | ||||
Net cash provided by (used in) continuing operating activities | 9,469 | |||
Net cash (used in) provided by discontinued operating activities | (5,547) | |||
Cash flows from investing activities | ||||
Purchase of property, equipment and software | 0 | |||
Originations of loans, net | 0 | |||
Investment in Cognical Holdings | 0 | |||
Net cash used in continuing investing activities | 0 | |||
Net cash used in discontinued investing activities | 0 | |||
Cash flows from financing activities | ||||
Net proceeds from issuance of common stock | 0 | |||
Payments on 12.00% Senior Secured Notes | 0 | |||
Payments of call premiums from early debt extinguishments | 0 | |||
Debt issuance costs paid | 0 | |||
Net cash used in financing activities | 0 | |||
Effect of exchange rate changes on cash and restricted cash | (3,922) | |||
Net increase (decrease) in cash and restricted cash | 0 | |||
Cash and restricted cash at beginning of period | 0 | |||
Cash and restricted cash at end of period | 0 | |||
Subsidiaries | Eliminations | Revolving Credit Facility | Non-Recourse U.S. SPV Facility | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 0 | |||
Payments on credit facilities | 0 | |||
Subsidiaries | Eliminations | Revolving Credit Facility | Senior Revolver | Line of Credit | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 0 | |||
Payments on credit facilities | 0 | |||
CURO | ||||
Cash flows from operating activities | ||||
Net cash provided by (used in) continuing operating activities | 67 | (13,215) | ||
Net cash (used in) provided by discontinued operating activities | 0 | 0 | ||
Cash flows from investing activities | ||||
Purchase of property, equipment and software | 0 | 0 | ||
Originations of loans, net | 0 | 0 | ||
Investment in Cognical Holdings | 0 | 0 | ||
Net cash used in continuing investing activities | 0 | 0 | ||
Net cash used in discontinued investing activities | 0 | 0 | ||
Cash flows from financing activities | ||||
Payments to net share settle RSUs | (37) | |||
Net proceeds from issuance of common stock | 13,135 | |||
Payments on 12.00% Senior Secured Notes | 0 | |||
Proceeds from exercise of stock options | 0 | |||
Payments of call premiums from early debt extinguishments | 0 | |||
Debt issuance costs paid | (30) | 0 | ||
Net cash used in financing activities | (67) | 13,135 | ||
Effect of exchange rate changes on cash and restricted cash | 0 | 0 | ||
Net increase (decrease) in cash and restricted cash | 0 | (80) | ||
Cash and restricted cash at beginning of period | 0 | 80 | ||
Cash and restricted cash at end of period | 0 | 0 | ||
CURO | Non-Recourse Canada SPV Facility | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 0 | |||
Payments on credit facilities | 0 | |||
CURO | Senior Revolver | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 0 | |||
Payments on credit facilities | $ 0 | |||
CURO | Revolving Credit Facility | Non-Recourse U.S. SPV Facility | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 0 | |||
Payments on credit facilities | 0 | |||
CURO | Revolving Credit Facility | Senior Revolver | Line of Credit | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 0 | |||
Payments on credit facilities | 0 | |||
CFTC | Subsidiary Issuer | Reportable Legal Entities | ||||
Cash flows from operating activities | ||||
Net cash provided by (used in) continuing operating activities | 87,829 | |||
Net cash (used in) provided by discontinued operating activities | 0 | |||
Cash flows from investing activities | ||||
Purchase of property, equipment and software | 0 | |||
Originations of loans, net | 0 | |||
Investment in Cognical Holdings | (958) | |||
Net cash used in continuing investing activities | (958) | |||
Net cash used in discontinued investing activities | 0 | |||
Cash flows from financing activities | ||||
Net proceeds from issuance of common stock | 0 | |||
Payments on 12.00% Senior Secured Notes | (77,500) | |||
Payments of call premiums from early debt extinguishments | (9,300) | |||
Debt issuance costs paid | (71) | |||
Net cash used in financing activities | (86,871) | |||
Effect of exchange rate changes on cash and restricted cash | 0 | |||
Net increase (decrease) in cash and restricted cash | 0 | |||
Cash and restricted cash at beginning of period | 0 | |||
Cash and restricted cash at end of period | 0 | |||
CFTC | Subsidiary Issuer | Reportable Legal Entities | Revolving Credit Facility | Non-Recourse U.S. SPV Facility | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 0 | |||
Payments on credit facilities | 0 | |||
CFTC | Subsidiary Issuer | Reportable Legal Entities | Revolving Credit Facility | Senior Revolver | Line of Credit | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 10,000 | |||
Payments on credit facilities | (10,000) | |||
CURO Intermediate | Subsidiary Issuer | Reportable Legal Entities | ||||
Cash flows from operating activities | ||||
Net cash provided by (used in) continuing operating activities | 0 | |||
Net cash (used in) provided by discontinued operating activities | 0 | |||
Cash flows from investing activities | ||||
Purchase of property, equipment and software | 0 | |||
Originations of loans, net | 0 | |||
Investment in Cognical Holdings | 0 | |||
Net cash used in continuing investing activities | 0 | |||
Net cash used in discontinued investing activities | 0 | |||
Cash flows from financing activities | ||||
Net proceeds from issuance of common stock | 0 | |||
Payments on 12.00% Senior Secured Notes | 0 | |||
Payments of call premiums from early debt extinguishments | 0 | |||
Debt issuance costs paid | 0 | |||
Net cash used in financing activities | 0 | |||
Effect of exchange rate changes on cash and restricted cash | 0 | |||
Net increase (decrease) in cash and restricted cash | 0 | |||
Cash and restricted cash at beginning of period | 0 | |||
Cash and restricted cash at end of period | 0 | |||
CURO Intermediate | Subsidiary Issuer | Reportable Legal Entities | Revolving Credit Facility | Non-Recourse U.S. SPV Facility | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 0 | |||
Payments on credit facilities | 0 | |||
CURO Intermediate | Subsidiary Issuer | Reportable Legal Entities | Revolving Credit Facility | Senior Revolver | Line of Credit | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 0 | |||
Payments on credit facilities | $ 0 | |||
[1] | (1) Financing activities include continuing operations only and were not impacted by discontinued operations |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event | 1 Months Ended |
Apr. 30, 2019USD ($) | |
Subsequent Event [Line Items] | |
Authorized repurchase amount | $ 50,000,000 |
Cognical Holdings, Inc. | Minimum | |
Subsequent Event [Line Items] | |
Ownership percentage | 30.00% |
Cognical Holdings, Inc. | Maximum | |
Subsequent Event [Line Items] | |
Ownership percentage | 35.00% |
Cognical Holdings, Inc. | |
Subsequent Event [Line Items] | |
Additional cash investment | $ 2,800,000 |