DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 02, 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 | Jun. 30, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity common stock shares outstanding (in shares) | 45,267,762 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash | $ 92,297 | $ 61,175 |
Restricted cash (includes restricted cash of consolidated VIEs of $14,819 and $12,840 as of June 30, 2019 and December 31, 2018, respectively) | 33,712 | 25,439 |
Gross loans receivable (includes loans of consolidated VIEs of $215,309 and $148,876 as of June 30, 2019 and December 31, 2018, respectively) | 609,593 | 571,531 |
Less: allowance for loan losses (includes allowance for losses of consolidated VIEs of $25,188 and $12,688 as of June 30, 2019 and December 31, 2018, respectively) | (101,877) | (73,997) |
Loans receivable, net | 507,716 | 497,534 |
Right of use asset - operating leases (Note 1) | 140,982 | |
Deferred income taxes | 2,637 | 1,534 |
Income taxes receivable | 37,579 | 16,741 |
Prepaid expenses and other | 30,241 | 43,588 |
Property and equipment, net | 72,993 | 76,750 |
Goodwill | 120,450 | 119,281 |
Other intangibles, net of accumulated amortization | 30,657 | 29,784 |
Other | 16,091 | 12,930 |
Assets from discontinued operations (Note 15) | 0 | 34,861 |
Total Assets | 1,085,355 | 919,617 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable and accrued liabilities | 59,274 | 49,146 |
Deferred revenue | 8,712 | 9,483 |
Lease liability - operating leases (Note 1) | 148,843 | |
Income taxes payable | 0 | 1,579 |
Accrued interest (includes accrued interest of consolidated VIEs of $713 and $831 as of June 30, 2019 and December 31, 2018, respectively) | 19,690 | 20,904 |
Liability for losses on CSO lender-owned consumer loans | 9,504 | 12,007 |
Deferred rent | 0 | 10,851 |
Long-term debt (includes long-term debt and issuance costs of consolidated VIEs of $94,565 and $3,588 as of June 30, 2019 and $111,335 and $3,856 as of December 31, 2018, respectively) | 768,512 | 804,140 |
Subordinated stockholder debt | 0 | 2,196 |
Other long-term liabilities | 8,594 | 5,800 |
Deferred tax liabilities | 4,848 | 13,730 |
Liabilities from discontinued operations (Note 15) | 0 | 8,882 |
Total Liabilities | 1,027,977 | 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; 46,499,482 and 46,412,231 shares issued as of June 30, 2019 and December 31, 2018, respectively; and 46,255,282 and 46,412,231 shares outstanding as of June 30, 2019 and December 31, 2018, respectively | 9 | 9 |
Treasury stock, at cost - 244,200 shares as of June 30, 2019 | (2,507) | 0 |
Paid-in capital | 64,790 | 60,015 |
Retained earnings (accumulated deficit) | 35,816 | (18,065) |
Accumulated other comprehensive loss | (40,730) | (61,060) |
Total Stockholders' Equity | 57,378 | (19,101) |
Total Liabilities and Stockholders' Equity | $ 1,085,355 | $ 919,617 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Restricted cash | $ 33,712 | $ 25,439 |
Total gross loans receivable | 609,593 | 571,531 |
Allowance for losses | 101,877 | 73,997 |
Accrued interest | 19,690 | 20,904 |
Long-term debt | $ 768,512 | $ 804,140 |
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) | 46,499,482 | 46,412,231 |
Class A common stock, outstanding (in shares) | 46,255,282 | 46,412,231 |
Treasury stock (in shares) | 244,200 | |
Variable Interest Entity | ||
Restricted cash | $ 14,819 | $ 12,840 |
Restricted cash | 12,840 | |
Total gross loans receivable | 215,309 | 148,876 |
Allowance for losses | 25,188 | 12,688 |
Accrued interest | 713 | 831 |
Accrued interest | 831 | |
Long-term debt | 94,565 | 111,335 |
Issuance costs | $ 3,588 | $ 3,856 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||||
Revenue | $ 264,300 | $ 237,169 | $ 542,239 | $ 488,012 | ||
Provision for losses | 112,010 | 86,347 | 214,395 | 163,230 | ||
Net revenue | 152,290 | 150,822 | 327,844 | 324,782 | ||
Cost of providing services | ||||||
Salaries and benefits | 26,086 | 26,908 | 54,787 | 53,826 | ||
Occupancy | 13,932 | 13,320 | 28,169 | 26,747 | ||
Office | 5,457 | 5,532 | 10,570 | 11,985 | ||
Other costs of providing services | 12,854 | 12,601 | 27,074 | 26,032 | ||
Advertising | 12,780 | 15,113 | 20,566 | 22,998 | ||
Total cost of providing services | 71,109 | 73,474 | 141,166 | 141,588 | ||
Gross margin | 81,181 | 77,348 | 186,678 | 183,194 | ||
Operating expense | ||||||
Corporate, district and other expenses | 39,038 | 32,980 | 88,126 | 68,409 | ||
Interest expense | 17,023 | 20,472 | 34,713 | 42,826 | ||
Loss on extinguishment of debt | 0 | 0 | 0 | 11,683 | ||
Total operating expense | 56,061 | 53,452 | 122,839 | 122,918 | ||
Income from continuing operations before income taxes | 25,120 | 23,896 | 63,839 | 60,276 | ||
Provision for income taxes | 7,453 | 5,178 | 17,499 | 16,645 | ||
Net income from continuing operations | 17,667 | $ 28,673 | 18,718 | $ 24,913 | 46,340 | 43,631 |
Net (loss) income from discontinued operations, net of tax | (834) | $ 8,375 | (2,743) | $ (1,621) | 7,541 | (4,364) |
Net income | $ 16,833 | $ 15,975 | $ 53,881 | $ 39,267 | ||
Weighted average common shares outstanding: | ||||||
Basic (in shares) | 46,451 | 45,650 | 46,438 | 45,578 | ||
Diluted (in shares) | 47,107 | 47,996 | 47,335 | 47,757 | ||
Basic income (loss) per share: | ||||||
Continuing operations (in dollars per share) | $ 0.38 | $ 0.41 | $ 1 | $ 0.96 | ||
Discontinued operations (in dollars per share) | (0.02) | (0.06) | 0.16 | (0.10) | ||
Basic earnings per share (in dollars per share) | 0.36 | 0.35 | 1.16 | 0.86 | ||
Diluted income (loss) per share: | ||||||
Continuing operations (in dollars per share) | 0.38 | 0.39 | 0.98 | 0.92 | ||
Discontinued operations (in dollars per share) | (0.02) | (0.06) | 0.16 | (0.10) | ||
Diluted earnings per share (in dollars per share) | $ 0.36 | $ 0.33 | $ 1.14 | $ 0.82 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 16,833 | $ 15,975 | $ 53,881 | $ 39,267 |
Other comprehensive income (loss): | ||||
Cash flow hedges, net of $0 tax in both periods | 0 | 0 | ||
Cash flow hedges, net of $0 tax in both periods | (439) | (385) | ||
Foreign currency translation adjustment, net of $0 tax in both periods | 3,635 | (6,752) | 20,330 | (9,663) |
Other comprehensive income (loss) | 3,635 | (7,191) | 20,330 | (10,048) |
Comprehensive income | $ 20,468 | $ 8,784 | $ 74,211 | $ 29,219 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Cash flow hedges, tax effect | $ 0 | $ 0 | ||
Cash flow hedges, tax effect | $ 0 | $ 0 | ||
Foreign currency translation adjustment, tax effect | $ 0 | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | Mar. 07, 2018 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Cash flows from operating activities | |||||||||
Net income from continuing operations | $ 17,667 | $ 28,673 | $ 18,718 | $ 24,913 | $ 46,340 | $ 43,631 | |||
Adjustments to reconcile net income to net cash provided by continuing operating activities: | |||||||||
Depreciation and amortization | 9,571 | 9,005 | |||||||
Provision for losses | 112,010 | 86,347 | 214,395 | 163,230 | |||||
Amortization of debt issuance costs and bond (premium)/discount | 1,568 | 2,117 | |||||||
Deferred income tax (benefit) expense | (3,596) | 3,199 | |||||||
Loss on disposal of property and equipment | 1,834 | 517 | |||||||
Loss on extinguishment of debt | 0 | 0 | 0 | 11,683 | |||||
Increase in cash surrender value of life insurance | (991) | (2,223) | |||||||
Share-based compensation expense | 4,816 | 4,023 | |||||||
Changes in operating assets and liabilities: | |||||||||
Accrued fees and service charges on loans receivable | (1,171) | 2,928 | |||||||
Prepaid expenses and other assets | 16,344 | 5,853 | |||||||
Other assets | (3,790) | 0 | |||||||
Accounts payable and accrued liabilities | 9,527 | (2,080) | |||||||
Deferred revenue | (915) | (1,193) | |||||||
Income taxes payable | 25,123 | 26,727 | |||||||
Income taxes receivable | (8,253) | (18,436) | |||||||
Deferred rent | 0 | 127 | |||||||
Accrued Interest | (1,247) | (3,284) | |||||||
Other liabilities | 2,764 | 909 | |||||||
Net cash provided by continuing operating activities | 312,319 | 246,733 | |||||||
Net cash (used in) provided by discontinued operating activities | (504) | 5,458 | |||||||
Net cash provided by operating activities | 311,815 | 252,191 | |||||||
Cash flows from investing activities | |||||||||
Purchase of property, equipment and software | (6,164) | (2,957) | |||||||
Loans receivable originated or acquired | (879,081) | (1,063,072) | |||||||
Loans receivable repaid | 661,882 | 868,436 | |||||||
Investments in Cognical Holdings | (4,368) | (958) | |||||||
Net cash used in continuing investing activities | (227,731) | (198,551) | |||||||
Net cash used in discontinued investing activities | (14,213) | (14,349) | |||||||
Net cash used in investing activities | (241,944) | (212,900) | |||||||
Cash flows from financing activities | |||||||||
Net proceeds from issuance of common stock | 0 | 12,431 | |||||||
Payments on 12.00% Senior Secured Notes | (77,500) | ||||||||
Debt issuance costs paid | (198) | (168) | |||||||
Payments on subordinated stockholder debt | (2,245) | 0 | |||||||
Payments of call premiums from early debt extinguishments | 0 | (9,300) | |||||||
Proceeds from exercise of stock options | 27 | 39 | |||||||
Repurchase of common stock | (1,762) | 0 | |||||||
Net cash used in financing activities | [1] | (45,180) | (80,661) | ||||||
Effect of exchange rate changes on cash and restricted cash | 1,461 | (4,189) | |||||||
Net increase (decrease) in cash and restricted cash | 26,152 | (45,559) | |||||||
Cash and restricted cash at beginning of period | $ 99,857 | $ 174,491 | 99,857 | 174,491 | $ 174,491 | ||||
Cash and restricted cash at end of period | 126,009 | 128,932 | 126,009 | 128,932 | $ 99,857 | ||||
Less: Cash and restricted cash of discontinued operations at end of period | 0 | 12,460 | 0 | 12,460 | |||||
Cash and restricted cash of continuing operations at end of period | $ 126,009 | $ 116,472 | 126,009 | 116,472 | |||||
Non-Recourse U.S. SPV Facility | |||||||||
Cash flows from financing activities | |||||||||
Proceeds from credit facilities | 0 | ||||||||
Payments on credit facilities | 0 | ||||||||
Non-Recourse Canada SPV Facility | |||||||||
Cash flows from financing activities | |||||||||
Proceeds from credit facilities | 3,750 | ||||||||
Payments on credit facilities | (24,752) | ||||||||
12% Senior Secured Notes | Senior Notes | |||||||||
Adjustments to reconcile net income to net cash provided by continuing operating activities: | |||||||||
Loss on extinguishment of debt | $ 11,700 | ||||||||
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 | 68,002 | ||||||||
Payments on credit facilities | (88,002) | ||||||||
Revolving Credit Facility | Non-Recourse U.S. SPV Facility | |||||||||
Cash flows from financing activities | |||||||||
Proceeds from credit facilities | 0 | 13,000 | |||||||
Payments on credit facilities | 0 | (19,163) | |||||||
Revolving Credit Facility | Non-Recourse Canada SPV Facility | |||||||||
Cash flows from financing activities | |||||||||
Proceeds from credit facilities | 3,750 | 0 | |||||||
Payments on credit facilities | (24,752) | 0 | |||||||
Revolving Credit Facility | Senior Revolver | Line of Credit | |||||||||
Cash flows from financing activities | |||||||||
Proceeds from credit facilities | 68,002 | 18,798 | |||||||
Payments on credit facilities | $ (88,002) | $ (18,798) | |||||||
[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 | Dec. 31, 2018 | 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 | 6 Months Ended |
Jun. 30, 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 ("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 filed with the Securities and Exchange Commission (the "SEC") on March 18, 2019 ("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. Additionally, in September 2018, and subsequently expanded in June 2019, the SEC changed the definition of a smaller reporting company ("SRC"). The change in definition of an SRC would allow more registrants to qualify to report under scaled disclosure requirements. Under these rules, CURO meets the definition of an SRC as of June 30, 2019. The 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 United Kingdom ("U.K.") operations were 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. Equity Investment in Unconsolidated Entity In April 2019, as part of a broader capital structure reorganization by the investee company, the Company made an additional $2.8 million cash investment in Cognical Holdings, which operates under the Zibby brand. See Note 8 - "Financial Instruments" for additional detail on the adjustment to fair value for the quarter ended June 30, 2019. 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 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 and 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 considers 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. 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 for accounting purposes and applied prospectively effective January 1, 2019. The change affects comparability to prior periods as follows: • Gross combined loans receivable: balances as of June 30, 2019 include $35.4 million of Open-End loans that are up to 90 days past-due with related accrued interest, while such balances for periods prior to March 31, 2019 do not include any past due loans. • Revenues: for the three and six months ended June 30, 2019, gross revenues include interest earned on past-due loan balances of approximately $12 million and $21 million , respectively, while revenues in prior-year periods do not include comparable amounts. • Provision for Losses : prospectively, 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 Allowance for loan losses. Because NCOs prospectively include unpaid principal and up to 90 days of related accrued interest, NCO amounts and rates are higher and the 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 increased to 18.3% at June 30, 2019 , compared to 10.7% in the same prior-year period. Correction of Immaterial Errors 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 $48.2 million from net Cash provided by operating activities to net Cash used in investing activities for the six months ended June 30, 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 and six months ended June 30, 2018. The Company has revised its Condensed Consolidated Financial Statements for the six months ended June 30, 2018 presented in this Form 10-Q. A summary of the correction follows: (dollars in thousands) Six Months Ended June 30, 2018 As Reported: (1) Net cash provided by continuing operating activities $ 52,097 Net cash used in continuing investing activities (3,915 ) As Corrected: Net cash provided by continuing operating activities 246,733 Net cash used in continuing investing activities (198,551 ) (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") issued 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. Due to the adoption of the new standard, the right of use assets ("ROU assets") and additional operating lease liabilities ("lease liabilities") as of June 30, 2019 were $141.0 million and $148.8 million , respectively. 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. Recently Issued Accounting Pronouncements Not Yet Adopted Accounting Pronouncements Related to the Current Expected Credit Loss ("CECL") Standard ASU 2016-13 In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” and subsequent amendments to the guidance: ASU 2018-19 in November 2018, ASU 2019-04 in April 2019, and ASU 2019-05 in May 2019. The standard, as amended, changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard will replace the current “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. For available-for-sale debt securities, entities will be required to record allowances rather than reduce the carrying amount, as they currently do under the other-than-temporary impairment model. The standard also simplifies the accounting model for purchased credit-impaired debt securities and loans. The amendment will affect loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. ASU 2019-04 clarifies that equity instruments without readily determinable fair values for which an entity has elected the measurement alternative should be remeasured to fair value as of the date that an observable transaction occurred. ASU 2019-05 provides an option to irrevocably elect to measure certain individual financial assets at fair value instead of amortized cost. The amendments should be applied on either a prospective transition or modified-retrospective approach depending on the subtopic. As issued, this ASU 2016-13 is effective for annual periods beginning after December 15, 2019, and interim periods therein. Early adoption is permitted for annual periods beginning after December 15, 2018, and interim periods therein. The Company is evaluating its alternatives with respect to the available accounting methods under ASU 2016‑13, including the fair value option. If the fair value option is not utilized, adoption of ASU 2016-13 will increase the allowance for credit losses with a resulting negative adjustment to retained earnings on the date of adoption. Additionally, as disclosed below, the Company is evaluating the impact of the FASB's definition of a SRC to the adoption of ASU 2016-13. ASU 2019-05 In May 2019, the FASB issued ASU 2019-05, which amends ASU 2016-13 to allow companies to irrevocably elect, upon adoption of ASU 2016-13, the fair value option on financial instruments that (i) were previously recorded at amortized cost and (ii) are within the scope of ASC 326-203 if the instruments are eligible for the fair value option under ASC 825-10. The fair value option election does not apply to held-to-maturity debt securities. Entities are required to make this election on an instrument-by-instrument basis. ASU 2019-05’s amendments should be applied on a modified-retrospective basis by means of a cumulative-effect adjustment to the opening balance of retained earnings in the statement of financial position as of the date that an entity adopted the amendments in ASU 2016-13. For entities that have adopted ASU 2016-13, the amendments in ASU 2019-05 are effective for fiscal years beginning after December 15, 2019, including interim periods therein. An entity may early adopt the ASU in any interim period after its issuance if the entity has adopted ASU 2016-13. For all other entities, the effective date will be the same as the effective date for ASU 2016-13. We are currently evaluating the methods and impact of adopting this new standard on the Condensed Consolidated Financial Statements. ASU 2019-04 In May 2019, the FASB issued ASU 2019-04, which clarifies certain aspects of accounting for credit losses, hedging activities, and financial instruments. The ASU’s amendments apply to all entities within the scope of the affected guidance. Accrued interest - Amortized cost basis is defined in ASU 2016-13 as "the amount at which a financing receivable or investment is originated or acquired, adjusted for applicable accrued interest, accretion or amortization of premium, discount, and net deferred fees or costs, collection of cash, write-offs, foreign exchange, and fair value hedge accounting adjustments". To address stakeholders’ concerns that the inclusion of accrued interest in the definition of amortized cost basis could make application of the credit loss guidance operationally burdensome, ASU 2019-04 provides certain alternatives for the measurement of the allowance for credit losses (ALL) on accrued interest receivable (AIR). These measurement alternatives include (1) measuring an ALL on AIR separately, (2) electing to provide separate disclosure of the AIR component of amortized cost as a practical expedient, and (3) making accounting policy elections to simplify certain aspects of the presentation and measurement of such AIR. As issued, for entities that have adopted ASU 2016-13, the amendments in ASU 2019-04 related to ASU 2016-13 are effective for fiscal years beginning after December 15, 2019, and interim periods therein. ASU 2019-04’s amendments should be applied "on a modified-retrospective basis by means of a cumulative-effect adjustment to the opening retained earnings balance in the statement of financial position as of the date an entity adopted the amendments in ASU 2016-13." Certain disclosures are also required. For all other entities, the effective date will be the same as the effective date in ASU 2016-13. FASB Definition of a Smaller Reporting Company ("SRC") as related to the CECL standard and evaluation of the impact of the CECL standard On July 17, 2019, the FASB issued for a 30-day comment period a draft proposal that would reconsider its philosophy for establishing effective dates for major projects for certain classes of companies, including SRCs. Under current SEC definitions, CURO meets the definition of an SRC as of June 30, 2019. The proposed standard would defer required adoption of the CECL standard for SRCs until fiscal periods beginning after December 15, 2022. The Company will continue to monitor the standard setting activities of the FASB and evaluate their potential impact on the adoption of accounting standards such as ASU 2016-13 and ASU 2019-04. We are currently evaluating the methods and impact of adopting the CECL standard on the Condensed Consolidated Financial Statements. SEC Disclosure Update In August 2018, the 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 and six months ended June 30, 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 | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES In August 2018, the Company closed the Non-Recourse Canada SPV facility, whereby certain loan receivables were sold to wholly-owned, bankruptcy-remote special purpose subsidiaries ("VIEs") to collateralize debt incurred under the facility. As the Company is the primary beneficiary of the VIEs, it 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) June 30, 2019 December 31, 2018 Assets Restricted cash $ 14,819 $ 12,840 Gross loans receivable less allowance for loan losses 190,121 136,187 Total Assets $ 204,940 $ 149,027 Liabilities Accounts payable and accrued liabilities $ 15,020 $ 4,980 Deferred revenue 45 40 Accrued interest 713 831 Long-term debt 90,977 107,479 Total Liabilities $ 106,755 $ 113,330 |
LOANS RECEIVABLE AND REVENUE
LOANS RECEIVABLE AND REVENUE | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, (in thousands) 2019 2018 2019 2018 Unsecured Installment $ 122,112 $ 114,936 $ 257,890 $ 240,315 Secured Installment 26,076 25,777 53,553 52,633 Open-End 54,972 27,222 107,841 54,445 Single-Pay 45,528 58,325 92,289 118,682 Ancillary 15,612 10,909 30,666 21,937 Total revenue $ 264,300 $ 237,169 $ 542,239 $ 488,012 The following tables summarize Loans receivable by product and the related delinquent loans receivable at June 30, 2019: June 30, 2019 (in thousands) Single-Pay Unsecured Installment Secured Installment Open-End Total Current loans receivable $ 76,126 $ 126,685 $ 71,218 $ 247,915 $ 521,944 Delinquent loans receivable — 38,037 14,216 35,396 87,649 Total loans receivable 76,126 164,722 85,434 283,311 609,593 Less: allowance for losses (4,941 ) (35,223 ) (9,996 ) (51,717 ) (101,877 ) Loans receivable, net $ 71,185 $ 129,499 $ 75,438 $ 231,594 $ 507,716 June 30, 2019 (in thousands) Unsecured Installment Secured Installment Open-End Total Delinquent loans receivable 0-30 days past due $ 14,995 $ 7,096 $ 14,997 $ 37,088 31-60 days past due 11,176 3,358 9,455 23,989 61-90 days past due 11,866 3,762 10,944 26,572 Total delinquent loans receivable $ 38,037 $ 14,216 $ 35,396 $ 87,649 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 June 30, 2019: June 30, 2019 (in thousands) Unsecured Installment Secured Installment Total Current loans receivable guaranteed by the Company $ 54,968 $ 1,930 $ 56,898 Delinquent loans receivable guaranteed by the Company 10,087 354 10,441 Total loans receivable guaranteed by the Company 65,055 2,284 67,339 Less: Liability for losses on CSO lender-owned consumer loans (9,433 ) (71 ) (9,504 ) Loans receivable guaranteed by the Company, net $ 55,622 $ 2,213 $ 57,835 June 30, 2019 (in thousands) Unsecured Installment Secured Installment Total Delinquent loans receivable 0-30 days past due $ 8,511 $ 299 $ 8,810 31-60 days past due 1,052 37 1,089 61-90 days past due 524 18 542 Total delinquent loans receivable $ 10,087 $ 354 $ 10,441 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 June 30, 2019 : Three Months Ended June 30, 2019 (in thousands) Single-Pay Unsecured Installment Secured Installment Open-End Other Total Balance, beginning of period $ 3,897 $ 33,666 $ 9,796 $ 46,963 $ — $ 94,322 Charge-offs (35,759 ) (37,336 ) (10,295 ) (30,688 ) (1,342 ) (115,420 ) Recoveries 24,301 5,366 2,693 5,537 822 38,719 Net charge-offs (11,458 ) (31,970 ) (7,602 ) (25,151 ) (520 ) (76,701 ) Provision for losses 12,446 33,514 7,802 29,373 520 83,655 Effect of foreign currency translation 56 13 — 532 — 601 Balance, end of period $ 4,941 $ 35,223 $ 9,996 $ 51,717 $ — $ 101,877 Allowance for loan losses as a percentage of gross loan receivables 6.5 % 21.4 % 11.7 % 18.3 % N/A 16.7 % The following table summarizes activity in the liability for losses on CSO lender-owned consumer loans during the three months ended June 30, 2019 : Three Months Ended (in thousands) Unsecured Installment Secured Installment Total Balance, beginning of period $ 8,583 $ 78 $ 8,661 Charge-offs (34,564 ) (683 ) (35,247 ) Recoveries 7,078 657 7,735 Net charge-offs (27,486 ) (26 ) (27,512 ) Provision for losses 28,336 19 28,355 Balance, end of period $ 9,433 $ 71 $ 9,504 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 June 30, 2019 : Three Months Ended June 30, 2019 (in thousands) Single-Pay Unsecured Installment Secured Installment Open-End Other Total Balance, beginning of period $ 3,897 $ 42,249 $ 9,874 $ 46,963 $ — $ 102,983 Charge-offs (35,759 ) (71,900 ) (10,978 ) (30,688 ) (1,342 ) (150,667 ) Recoveries 24,301 12,444 3,350 5,537 822 46,454 Net charge-offs (11,458 ) (59,456 ) (7,628 ) (25,151 ) (520 ) (104,213 ) Provision for losses 12,446 61,850 7,821 29,373 520 112,010 Effect of foreign currency translation 56 13 — 532 — 601 Balance, end of period $ 4,941 $ 44,656 $ 10,067 $ 51,717 $ — $ 111,381 The following table summarizes activity in the allowance for loan losses during the three months ended June 30, 2018 : Three Months Ended June 30, 2018 (in thousands) Single-Pay Unsecured Installment Secured Installment Open-End Other Total Balance, beginning of period $ 3,514 $ 33,638 $ 11,639 $ 6,846 $ — $ 55,637 Charge-offs (41,242 ) (31,612 ) (11,082 ) (23,807 ) (593 ) (108,336 ) Recoveries 28,266 5,085 2,296 11,883 38 47,568 Net charge-offs (12,976 ) (26,527 ) (8,786 ) (11,924 ) (555 ) (60,768 ) Provision for losses 13,101 23,219 7,533 14,848 555 59,256 Effect of foreign currency translation (35 ) (39 ) — (53 ) — (127 ) Balance, end of period $ 3,604 $ 30,291 $ 10,386 $ 9,717 $ — $ 53,998 Allowance for loan losses as a percentage of gross loan receivables 4.3 % 18.9 % 12.3 % 10.7 % N/A 12.8 % The following table summarizes activity in the liability for losses on CSO lender-owned consumer loans during the three months ended June 30, 2018 : Three Months Ended June 30, 2018 (in thousands) Unsecured Installment Secured Installment Total Balance, beginning of period $ 9,886 $ 526 $ 10,412 Charge-offs (33,017 ) (993 ) (34,010 ) Recoveries 7,350 776 8,126 Net charge-offs (25,667 ) (217 ) (25,884 ) Provision for losses 26,974 117 27,091 Balance, end of period $ 11,193 $ 426 $ 11,619 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 June 30, 2018 : Three Months Ended June 30, 2018 (in thousands) Single-Pay Unsecured Installment Secured Installment Open-End Other Total Balance, beginning of period $ 3,514 $ 43,524 $ 12,165 $ 6,846 $ — $ 66,049 Charge-offs (41,242 ) (64,629 ) (12,075 ) (23,807 ) (593 ) (142,346 ) Recoveries 28,266 12,435 3,072 11,883 38 55,694 Net charge-offs (12,976 ) (52,194 ) (9,003 ) (11,924 ) (555 ) (86,652 ) Provision for losses 13,101 50,193 7,650 14,848 555 86,347 Effect of foreign currency translation (35 ) (39 ) — (53 ) — (127 ) Balance, end of period $ 3,604 $ 41,484 $ 10,812 $ 9,717 $ — $ 65,617 The following table summarizes activity in the allowance for loan losses during the six months ended June 30, 2019 : Six Months Ended June 30, 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 (72,280 ) (81,573 ) (22,966 ) (34,326 ) (2,693 ) (213,838 ) Recoveries 52,212 11,684 5,816 10,696 1,721 82,129 Net charge-offs (20,068 ) (69,889 ) (17,150 ) (23,630 ) (972 ) (131,709 ) Provision for losses 20,714 67,359 14,955 54,690 972 158,690 Effect of foreign currency translation 106 37 — 756 — 899 Balance, end of period $ 4,941 $ 35,223 $ 9,996 $ 51,717 $ — $ 101,877 Allowance for loan losses as a percentage of gross loan receivables 6.5 % 21.4 % 11.7 % 18.3 % N/A 16.7 % The following table summarizes activity in the liability for losses on CSO lender-owned consumer loans during the six months ended June 30, 2019 : Six Months Ended (in thousands) Unsecured Installment Secured Installment Total Balance, beginning of period $ 11,582 $ 425 $ 12,007 Charge-offs (75,545 ) (1,760 ) (77,305 ) Recoveries 17,638 1,459 19,097 Net charge-offs (57,907 ) (301 ) (58,208 ) Provision for losses 55,758 (53 ) 55,705 Balance, end of period $ 9,433 $ 71 $ 9,504 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 six months ended June 30, 2019 : Six Months Ended June 30, 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 (72,280 ) (157,118 ) (24,726 ) (34,326 ) (2,693 ) (291,143 ) Recoveries 52,212 29,322 7,275 10,696 1,721 101,226 Net charge-offs (20,068 ) (127,796 ) (17,451 ) (23,630 ) (972 ) (189,917 ) Provision for losses 20,714 123,117 14,902 54,690 972 214,395 Effect of foreign currency translation 106 37 — 756 — 899 Balance, end of period $ 4,941 $ 44,656 $ 10,067 $ 51,717 $ — $ 111,381 The following table summarizes activity in the allowance for loan losses during the six months ended June 30, 2018 : Six Months Ended June 30, 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 (85,578 ) (66,831 ) (22,567 ) (44,156 ) (1,268 ) (220,400 ) Recoveries 61,084 10,303 5,162 21,260 85 97,894 Net charge-offs (24,494 ) (56,528 ) (17,405 ) (22,896 ) (1,183 ) (122,506 ) Provision for losses 22,993 47,958 14,319 26,276 1,183 112,729 Effect of foreign currency translation (99 ) (116 ) — (89 ) — (304 ) Balance, end of period $ 3,604 $ 30,291 $ 10,386 $ 9,717 $ — $ 53,998 Allowance for loan losses as a percentage of gross loan receivables 4.3 % 18.9 % 12.3 % 10.7 % N/A 12.8 % The following table summarizes activity in the liability for losses on CSO lender-owned consumer loans during the six months ended June 30, 2018 : Six Months Ended (in thousands) Unsecured Installment Secured Installment Total Balance, beginning of period $ 17,073 $ 722 $ 17,795 Charge-offs (74,736 ) (2,212 ) (76,948 ) Recoveries 18,326 1,945 20,271 Net charge-offs (56,410 ) (267 ) (56,677 ) Provision for losses 50,530 (29 ) 50,501 Balance, end of period $ 11,193 $ 426 $ 11,619 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 six months ended June 30, 2018 : Six Months Ended June 30, 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 (85,578 ) (141,567 ) (24,779 ) (44,156 ) (1,268 ) (297,348 ) Recoveries 61,084 28,629 7,107 21,260 85 118,165 Net charge-offs (24,494 ) (112,938 ) (17,672 ) (22,896 ) (1,183 ) (179,183 ) Provision for losses 22,993 98,488 14,290 26,276 1,183 163,230 Effect of foreign currency translation (99 ) (116 ) — (89 ) — (304 ) Balance, end of period $ 3,604 $ 41,484 $ 10,812 $ 9,717 $ — $ 65,617 |
CREDIT SERVICES ORGANIZATION
CREDIT SERVICES ORGANIZATION | 6 Months Ended |
Jun. 30, 2019 | |
Guarantees [Abstract] | |
CREDIT SERVICES ORGANIZATION | CREDIT SERVICES ORGANIZATION The CSO fee receivable amounts under CSO programs were $12.0 million and $14.3 million at June 30, 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 with 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 June 30, 2019 and December 31, 2018 , the maximum amount payable under all such guarantees was $56.0 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 $9.5 million and $12.0 million at June 30, 2019 and December 31, 2018 , respectively. The Company placed $5.8 million and $17.2 million in collateral accounts for the benefit of lenders at June 30, 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 | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt consisted of the following: (in thousands) June 30, 2019 December 31, 2018 8.25% Senior Secured Notes (due 2025) $ 677,535 $ 676,661 Non-Recourse Canada SPV Facility 90,977 107,479 Senior Revolver — 20,000 Long-term debt $ 768,512 $ 804,140 8.25% Senior Secured Notes In August 2018, the Company issued $690.0 million of 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 a portion of 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 June 30, 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 early 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 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"). 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 , to 2023. As of June 30, 2019 , the Canada SPV Borrower was in full compliance with the covenants and other provisions of the Non-Recourse Canada SPV Facility. As of June 30, 2019 , outstanding borrowings under the Non-Recourse Canada SPV Facility were $91.0 million , net of deferred financing costs of $3.6 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 provided for an $80.0 million term loan and $70.0 million revolving borrowing capacity that could expand over time (collectively, “Non-Recourse U.S. SPV Facility”). Borrowings under this facility bore 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 paid a 0.50% per annum fee on the unused portion of the commitments. In connection with this facility, the capitalized financing costs at the time of extinguishment, as discussed below, were approximately $5.3 million , net of amortization. These capitalized financing costs were included in the Condensed Consolidated Balance Sheet as a component of "Long-term debt" and were 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 during 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 current term expires June 30, 2020. The Senior Revolver accrues interest at one -month LIBOR plus 5.00% (subject to a 5% overall 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. Additionally, the negative covenants of the Senior Revolver generally conform to the related provisions in the Indenture for the 8.25% Senior Secured Notes. The revolver was undrawn at June 30, 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 June 30, 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 June 30, 2019 , the borrowing capacity under the Cash Money Revolving Credit Facility, which was C$9.7 million , was reduced by C $0.3 million for outstanding 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 require, among other things, that the aggregate borrowings outstanding under the facility not exceed the borrowing base, as well as 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 June 30, 2019 and December 31, 2018. Subordinated Stockholder Debt As part of the acquisition of Cash Money in 2011, the Company received 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. The balance of this note was repaid in full as of June 30, 2019 . |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 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. Restricted Stock Units Grants of time-based RSUs are valued at the date of grant based on the value of our common stock and are expensed using the straight-line method over the service period. These RSUs are subject to time-based vesting and typically vest over a three -year period. In March 2019, the Company awarded market-based RSUs designed to drive the performance of the management team toward achievement of key corporate objectives. The market-based RSUs vest after three years depending upon the Company's total stockholder return over the three -year performance period relative to other companies in its selected peer group. These awards are valued using the Monte Carlo simulation pricing model. Expense recognition for the market-based awards occurs over the service period using the straight-line method. 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 market-based RSUs as of June 30, 2019 and changes during the six months ended June 30, 2019 are presented in the following table: Number of RSUs Time-Based Market-Based Weighted Average Grant Date Fair Value per Share December 31, 2018 1,060,350 — $ 14.29 Granted 579,540 394,755 10.07 Vested (83,481 ) — 15.59 Forfeited (68,778 ) — 14.05 June 30, 2019 1,487,631 394,755 $ 12.06 Share-based compensation expense for the three months ended June 30, 2019 and 2018 , which includes compensation costs from stock options and RSUs, was $2.6 million and $2.2 million , respectively, and during the six months ended June 30, 2019 and 2018 was $4.8 million and $4.0 million , respectively, and is included in the Condensed Consolidated Statements of Operations as a component of "Corporate, district and other expenses." As of June 30, 2019 , there was $18.5 million of total unrecognized compensation cost related to stock options and RSUs, of which $15.4 million related to stock options and time-based RSUs and $3.1 million related to market-based RSUs. Total unrecognized compensation costs will be recognized over a weighted-average period of 2.0 years . |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company's effective income tax rate from continuing operations was 27.4% and 27.6% for the six months ended June 30, 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 six months ended June 30, 2018. The Company recorded an estimated GILTI tax of $0.5 million and $0.6 million during the six months ended June 30, 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 $159.3 million were distributed to the U.S., the Company would be subject to Canadian withholding taxes of estimated $8.0 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 | 6 Months Ended |
Jun. 30, 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 June 30, 2019 : Estimated Fair Value (in thousands) Carrying Value June 30, Level 1 Level 2 Level 3 Total Financial assets: Cash $ 92,297 $ 92,297 $ — $ — $ 92,297 Restricted cash 33,712 33,712 — — 33,712 Loans receivable, net 507,716 — — 507,716 507,716 Investment in Cognical 7,178 — — 7,178 7,178 Financial liabilities: Liability for losses on CSO lender-owned consumer loans $ 9,504 $ — $ — $ 9,504 $ 9,504 8.25% Senior Secured Notes 677,535 — — 574,211 574,211 Non-Recourse Canada SPV facility 90,977 — — 94,565 94,565 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 Total 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. During the second quarter of 2019, Zibby completed an equity raising round at a value per share less than the value per share raised in prior raises. This round included additional investments from existing shareholders and investments by new investors and is considered indicative of the fair value of shares in Zibby. Accordingly, we recognized a $3.7 million impairment in our investment in Zibby to adjust it to market value. As of June 30, 2019, we owned approximately 30% of the outstanding shares of Zibby on a fully diluted basis. See Note 18 - "Subsequent Events" for information regarding additional investments in Zibby in July 2019. 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 | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 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 Net income from continuing operations — — — 18,718 — 18,718 Net loss from discontinued operations — — — (2,743 ) — (2,743 ) Foreign currency translation adjustment — — — — (6,754 ) (6,754 ) Cash flow hedge expiration — — — — (439 ) (439 ) Share based compensation expense — — 1,478 — — 1,478 Proceeds from exercise of stock options 209,132 — 39 — — 39 Common stock issued for RSU's vesting 49,994 — — — — — Balances at June 30, 2018 45,820,545 $ 9 $ 62,573 $ 43,255 $ (52,988 ) $ 52,849 (1) Accumulated other comprehensive income (loss) Common Stock Paid-in capital Treasury Stock 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 Net income from continuing operations — — — — 17,667 — 17,667 Net income from discontinued operations — — — — (834 ) — (834 ) Foreign currency translation adjustment — — — — — 3,635 3,635 Share based compensation expense — — 2,644 — — — 2,644 Proceeds from exercise of stock options 4,908 — 29 — — — 29 Purchase of shares under the stock repurchase program (244,200 ) — — (2,507 ) — — (2,507 ) Common stock issued for RSU's vesting, net of shares withheld and withholding paid for employee taxes 63,285 — — — — — — Balances at June 30, 2019 46,255,282 $ 9 $ 64,790 $ (2,507 ) $ 35,816 $ (40,730 ) $ 57,378 (1) Accumulated other comprehensive income (loss) |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 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 Six Months Ended 2019 2018 2019 2018 Net income from continuing operations $ 17,667 $ 18,718 $ 46,340 $ 43,631 Net income (loss) from discontinued operations, net of tax (834 ) (2,743 ) $ 7,541 $ (4,364 ) Net income $ 16,833 $ 15,975 $ 53,881 $ 39,267 Weighted average common shares - basic 46,451 45,650 46,438 45,578 Dilutive effect of stock options and restricted stock units 656 2,346 897 2,179 Weighted average common shares - diluted 47,107 47,996 47,335 47,757 Basic income (loss) per share: Continuing operations $ 0.38 $ 0.41 $ 1.00 $ 0.96 Discontinued operations (0.02 ) (0.06 ) 0.16 (0.10 ) Basic income per share $ 0.36 $ 0.35 $ 1.16 $ 0.86 Diluted income (loss) per share: Continuing operations $ 0.38 $ 0.39 $ 0.98 $ 0.92 Discontinued operations (0.02 ) (0.06 ) 0.16 (0.10 ) Diluted income per share $ 0.36 $ 0.33 $ 1.14 $ 0.82 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 and six months ended June 30, 2019 , there were 1.3 million and 1.2 million , respectively, of 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 and six months ended June 30, 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 | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION The following table provides supplemental cash flow information: Six Months Ended (dollars in thousands) 2019 2018 Cash paid for: Interest $ 34,678 $ 44,250 Income taxes 4,231 11,621 Non-cash investing activities: Property and equipment accrued in accounts payable $ 105 $ 595 |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Jun. 30, 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 Six Months Ended (dollars in thousands) 2019 2018 2019 2018 Revenues by segment: U.S. $ 210,046 $ 190,126 $ 436,165 $ 394,719 Canada 54,254 47,043 106,074 93,293 Consolidated revenue $ 264,300 $ 237,169 $ 542,239 $ 488,012 Gross margin by segment: U.S. $ 65,067 $ 64,048 $ 154,870 $ 155,392 Canada 16,114 13,300 31,808 27,802 Consolidated gross margin $ 81,181 $ 77,348 $ 186,678 $ 183,194 Segment operating income: U.S. $ 17,029 $ 15,362 $ 48,224 $ 42,194 Canada 8,091 8,534 15,615 18,082 Consolidated operating profit $ 25,120 $ 23,896 $ 63,839 $ 60,276 Expenditures for long-lived assets by segment: U.S. $ 2,568 $ 1,195 $ 4,998 $ 1,983 Canada 477 220 1,166 974 Consolidated expenditures for long-lived assets $ 3,045 $ 1,415 $ 6,164 $ 2,957 The following table provides gross loans receivable by segment: (dollars in thousands) June 30, December 31, U.S. $ 340,968 $ 361,473 Canada 268,625 210,058 Total gross loans receivable $ 609,593 $ 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) June 30, 2019 December 31, 2018 U.S. $ 44,209 $ 47,918 Canada 28,784 28,832 Total net long-lived assets $ 72,993 $ 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 | 6 Months Ended |
Jun. 30, 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. On May 31, 2019, plaintiffs filed a consolidated complaint naming Doug Rippel, Chad Faulkner, Mike McKnight, Friedman Fleischer & Lowe Capital Partners II, L.P., FFL Executive Partners II, L.P., and FFL Parallel Fund II, L.P. as additional defendants. The complaint alleges that the Company and the individual defendants violated Section 10(b) of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and that certain 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 April 27, 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. 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 | 6 Months Ended |
Jun. 30, 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 $17.0 million for the period ended June 30, 2019 . Some of the leases are with related parties and have terms similar to the non-related party leases previously described. Operating lease costs for unrelated third-party leases were $15.3 million and for related party leases were $1.7 million for the three months ended June 30, 2019 . During the six months ended June 30, 2019 , cash paid for amounts included in the measurement of the liabilities and the operating cash flows were $17.4 million . The following table summarizes the future minimum lease payments that the Company is contractually obligated to make under operating leases as of June 30, 2019: (in thousands) Third-Party Related-Party Total 2019 $ 15,517 $ 1,840 $ 17,357 2020 30,735 3,752 34,487 2021 30,344 3,852 34,196 2022 29,353 3,909 33,262 2023 25,280 3,616 28,896 Thereafter 44,277 10,883 55,160 Total 175,506 27,852 203,358 Less: Imputed interest (45,852 ) (8,663 ) (54,515 ) Operating lease liabilities $ 129,654 $ 19,189 $ 148,843 As of June 30, 2019, the weighted average remaining lease term was 6.3 years , and the weighted average operating discount rate used to determine the operating lease liability was 10.3% . |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 6 Months Ended |
Jun. 30, 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 classified them as Discontinued Operations for all periods presented. Revenue and expenses related to discontinued operations included activity prior to the deconsolidation of the U.K. Subsidiaries effective February 25, 2019. For the six months ended June 30, 2019, "Loss on disposition" of $39.4 million included the non-cash effect of eliminating assets and liabilities of the U.K. Subsidiaries as of the date of deconsolidation, as well as the effect of cumulative currency exchange rate differences on the U.S. investment in the U.K. In connection with the disposition of the U.K. Subsidiaries, the U.S. entity that owned the Company's interests in the U.K. Subsidiaries recognized a loss on investment. This loss resulted in an estimated U.S. federal and state income tax benefit of $46.6 million , which will be available to offset the Company's future U.S. federal and state income tax obligations. In the second quarter of 2019, the Company revised the estimate of the tax basis in the U.K. Subsidiaries, resulting in a $0.8 million reduction in the income tax benefit recorded in the first quarter of 2019. 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 Six Months Ended June 30, (in thousands) 2019 2018 2019 (1) 2018 Revenue $ — $ 11,814 $ 6,957 $ 22,729 Provision for losses — 5,639 1,703 9,787 Net revenue — 6,175 5,254 12,942 Cost of providing services Office — 545 246 1,073 Other costs of providing services — 125 61 1,094 Advertising — 2,441 775 4,312 Total cost of providing services — 3,111 1,082 6,479 Gross margin — 3,064 4,172 6,463 Operating expense (income) Corporate, district and other expenses — 5,675 3,810 10,700 Interest income — (7 ) (4 ) (12 ) Loss on disposition — — 39,414 — Total operating expense — 5,668 43,220 10,688 Pre-tax (loss) income from operations of discontinued operations — (2,604 ) (39,048 ) (4,225 ) Income tax expense (benefit) related to disposition 834 139 (46,589 ) 139 Net income (loss) from discontinued operations $ (834 ) $ (2,743 ) $ 7,541 $ (4,364 ) (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) June 30, 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 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: Six Months Ended June 30, (in thousands) 2019 (1) 2018 Net cash (used in) / provided by discontinued operating activities $ (504 ) $ 5,458 Net cash used in discontinued investing activities (14,213 ) (14,349 ) 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 | 6 Months Ended |
Jun. 30, 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 June 30, 2019 (dollars in thousands) Subsidiary Guarantors Subsidiary Non-Guarantors Canada SPV CURO Eliminations CURO Assets: Cash $ 68,354 $ 23,943 $ — $ — $ — $ 92,297 Restricted cash 16,198 2,695 14,819 — — 33,712 Loans receivable, net 269,298 48,297 190,121 — — 507,716 Right of use asset - operating leases 79,000 61,982 — — — 140,982 Deferred income taxes (7,848 ) — — 10,485 — 2,637 Income taxes receivable (470 ) 6,395 — 31,654 — 37,579 Prepaid expenses and other 23,038 7,203 — — — 30,241 Property and equipment, net 44,209 28,784 — — — 72,993 Goodwill 91,131 29,319 — — — 120,450 Other intangibles, net 8,420 22,237 — — — 30,657 Intercompany receivable 107,251 — — — (107,251 ) — Investment in subsidiaries — — — (1,515 ) 1,515 — Other 15,401 690 — — — 16,091 Total assets $ 713,982 $ 231,545 $ 204,940 $ 40,624 $ (105,736 ) $ 1,085,355 Liabilities and Stockholders' equity: Accounts payable and accrued liabilities $ 44,667 $ (1,166 ) $ 15,020 $ 753 $ — $ 59,274 Deferred revenue 5,237 3,430 45 — — 8,712 Lease liability - operating leases 86,685 62,158 — — — 148,843 Income taxes payable (18,731 ) — — 18,731 — — Accrued interest 2 — 713 18,975 — 19,690 Payable to CURO Holdings Corp. 736,920 — — (736,920 ) — — CSO liability for losses 9,504 — — — — 9,504 Long-term debt — — 90,976 677,536 — 768,512 Intercompany payable — 20,002 87,249 — (107,251 ) — Other liabilities 7,999 595 — — — 8,594 Deferred tax liabilities (4,171 ) 4,848 — 4,171 — 4,848 Total liabilities 868,112 89,867 194,003 (16,754 ) (107,251 ) 1,027,977 Stockholder’s equity (154,130 ) 141,678 10,937 57,378 1,515 57,378 Total liabilities and stockholder’s equity $ 713,982 $ 231,545 $ 204,940 $ 40,624 $ (105,736 ) $ 1,085,355 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 June 30, 2019 (dollars in thousands) Subsidiary Subsidiary Canada SPV CURO Eliminations CURO Revenue $ 210,046 $ 28,162 $ 26,092 $ — $ — $ 264,300 Provision for losses 92,552 6,344 13,114 — — 112,010 Net revenue 117,494 21,818 12,978 — — 152,290 Cost of providing services: Salaries and benefits 17,422 8,664 — — — 26,086 Occupancy 8,033 5,899 — — — 13,932 Office 4,004 1,453 — — — 5,457 Other costs of providing services 11,789 1,065 — — — 12,854 Advertising 11,179 1,601 — — — 12,780 Total cost of providing services 52,427 18,682 — — — 71,109 Gross margin 65,067 3,136 12,978 — — 81,181 Operating (income) expense: Corporate, district and other expenses 30,766 6,422 (781 ) 2,631 — 39,038 Intercompany management fee (3,237 ) 3,229 8 — — — Interest expense 27 7 2,375 14,614 — 17,023 Intercompany interest (income) expense (1,513 ) 890 623 — — — Total operating expense 26,043 10,548 2,225 17,245 — 56,061 Income (loss) from continuing operations before income taxes 39,024 (7,412 ) 10,753 (17,245 ) — 25,120 Provision (benefit) for income tax expense 9,591 1,094 — (3,232 ) — 7,453 Net income (loss) from continuing operations 29,433 (8,506 ) 10,753 (14,013 ) — 17,667 Net loss on discontinued operations — (834 ) — — — (834 ) Net (loss) income 29,433 (9,340 ) 10,753 (14,013 ) — 16,833 Equity in net income (loss) of subsidiaries: CFTC — — — 30,846 (30,846 ) — Guarantor Subsidiaries 29,433 — — — (29,433 ) — Non-Guarantor Subsidiaries (9,340 ) — — — 9,340 — SPV Subs 10,753 — — — (10,753 ) — Net income (loss) attributable to CURO $ 60,279 $ (9,340 ) $ 10,753 $ 16,833 $ (61,692 ) $ 16,833 Three Months Ended June 30, 2018 (dollars in thousands) CFTC CURO Intermediate Subsidiary Guarantors Subsidiary Non-Guarantors SPV Subs Eliminations CFTC Consolidated CURO Eliminations CURO Consolidated Revenue $ — $ — $ 118,034 $ 47,043 $ 72,092 $ — $ 237,169 $ — $ — $ 237,169 Provision for losses — — 46,320 14,360 25,667 — 86,347 — — 86,347 Net revenue — — 71,714 32,683 46,425 — 150,822 — — 150,822 Cost of providing services: Salaries and benefits — — 18,070 8,838 — — 26,908 — — 26,908 Occupancy — — 7,643 5,677 — — 13,320 — — 13,320 Office — — 4,247 1,285 — — 5,532 — — 5,532 Other store operating expenses — — 11,254 881 466 — 12,601 — — 12,601 Advertising — — 12,409 2,704 — — 15,113 — — 15,113 Total cost of providing services — — 53,623 19,385 466 — 73,474 — — 73,474 Gross Margin — — 18,091 13,298 45,959 — 77,348 — — 77,348 Operating (income) expense: Corporate, district and other expenses 458 18 25,383 4,759 46 — 30,664 2,316 — 32,980 Intercompany management fee — — (6,920 ) 3,281 3,639 — — — — — Interest expense 16,585 — (60 ) 7 3,940 — 20,472 — — 20,472 Intercompany interest (income) expense — (904 ) (180 ) 1,084 — — — — — — Loss on extinguishment of debt — — — — — — — — — — Total operating expense 17,043 (886 ) 18,223 9,131 7,625 — 51,136 2,316 — 53,452 (Loss) income from continuing operations before income taxes (17,043 ) 886 (132 ) 4,167 38,334 — 26,212 (2,316 ) — 23,896 (Benefit) provision for income tax expense (5,418 ) 13,668 (4,458 ) 1,962 — — 5,754 (576 ) — 5,178 Net (loss) income from continuing operations (11,625 ) (12,782 ) 4,326 2,205 38,334 — 20,458 (1,740 ) — 18,718 Net loss from discontinued operations — — — (2,743 ) — — (2,743 ) — — (2,743 ) Net (loss) income (11,625 ) (12,782 ) 4,326 (538 ) 38,334 — 17,715 (1,740 ) — 15,975 Equity in net income (loss) of subsidiaries: CFTC — — — — — — — 20,458 (20,458 ) — CURO Intermediate (12,782 ) — — — — 12,782 — — — — Guarantor Subsidiaries 4,326 — — — — (4,326 ) — — — — Non-Guarantor Subsidiaries 2,205 — — — — (2,205 ) — — — — SPV Subs 38,334 — — — — (38,334 ) — — — — Net income (loss) attributable to CURO $ 20,458 $ (12,782 ) $ 4,326 $ (538 ) $ 38,334 $ (32,083 ) $ 17,715 $ 18,718 $ (20,458 ) $ 15,975 Six Months Ended June 30, 2019 (dollars in thousands) Subsidiary Subsidiary Canada SPV CURO Eliminations CURO Revenue $ 436,165 $ 54,936 $ 51,138 $ — $ — $ 542,239 Provision for losses 177,532 10,443 26,420 — — 214,395 Net revenue 258,633 44,493 24,718 — — 327,844 Cost of providing services: Salaries and benefits 37,373 17,414 — — — 54,787 Occupancy 16,043 12,126 — — — 28,169 Office 7,893 2,677 — — — 10,570 Other costs of providing services 24,921 2,153 — — — 27,074 Advertising 17,533 3,033 — — — 20,566 Total cost of providing services 103,763 37,403 — — — 141,166 Gross margin 154,870 7,090 24,718 — — 186,678 Operating (income) expense: Corporate, district and other expenses 72,304 11,604 (755 ) 4,973 — 88,126 Intercompany management fee (6,300 ) 6,284 16 — — — Interest expense 317 79 5,265 29,052 — 34,713 Intercompany interest (income) expense (2,393 ) 1,770 623 — — — Total operating expense 63,928 19,737 5,149 34,025 — 122,839 Income (loss) from continuing operations before income taxes 90,942 (12,647 ) 19,569 (34,025 ) — 63,839 Provision (benefit) for income tax expense 23,610 2,129 — (8,240 ) — 17,499 Net income (loss) from continuing operations 67,332 (14,776 ) 19,569 (25,785 ) — 46,340 Net loss on discontinued operations — 7,541 — — — 7,541 Net (loss) income 67,332 (7,235 ) 19,569 (25,785 ) — 53,881 Equity in net income (loss) of subsidiaries: CFTC — — — 79,666 (79,666 ) — Guarantor Subsidiaries 67,332 — — — (67,332 ) — Non-Guarantor Subsidiaries (7,235 ) — — — 7,235 — SPV Subs 19,569 — — — (19,569 ) — Net income (loss) attributable to CURO $ 146,998 $ (7,235 ) $ 19,569 $ 53,881 $ (159,332 ) $ 53,881 Six Months Ended June 30, 2018 (dollars in thousands) CFTC CURO Intermediate Subsidiary Guarantors Subsidiary Non-Guarantors SPV Subs Eliminations CFTC Consolidated CURO Eliminations CURO Consolidated Revenue $ — $ — $ 246,442 $ 93,293 $ 148,277 $ — $ 488,012 $ — $ — $ 488,012 Provision for losses — — 82,089 26,910 54,231 — 163,230 — — 163,230 Net revenue — — 164,353 66,383 94,046 — 324,782 — — 324,782 Cost of providing services: Salaries and benefits — — 36,089 17,737 — — 53,826 — — 53,826 Occupancy — — 15,289 11,458 — — 26,747 — — 26,747 Office — — 9,830 2,155 — — 11,985 — — 11,985 Other store operating expenses — — 23,284 1,801 947 — 26,032 — — 26,032 Advertising — — 17,568 5,430 — — 22,998 — — 22,998 Total cost of providing services — — 102,060 38,581 947 — 141,588 — — 141,588 Gross Margin — — 62,293 27,802 93,099 — 183,194 — — 183,194 Operating (income) expense: Corporate, district and other expenses 906 25 53,375 9,656 76 — 64,038 4,371 — 68,409 Intercompany management fee — — (13,822 ) 6,775 7,047 — — — — — Interest expense 34,907 — (172 ) 64 8,027 — 42,826 — — 42,826 Intercompany interest (income) expense — (1,784 ) (259 ) 2,043 — — — — — — Loss on extinguishment of debt 11,683 — — — — — 11,683 — — 11,683 Total operating expense 47,496 (1,759 ) 39,122 18,538 15,150 — 118,547 4,371 — 122,918 (Loss) income from continuing operations before income taxes (47,496 ) 1,759 23,171 9,264 77,949 — 64,647 (4,371 ) — 60,276 (Benefit) provision for income tax expense (12,259 ) 32,165 (6,043 ) 3,891 — — 17,754 (1,109 ) — 16,645 Net (loss) income from continuing operations (35,237 ) (30,406 ) 29,214 5,373 77,949 — 46,893 (3,262 ) — 43,631 Net loss from discontinued operations — — — (4,364 ) — — (4,364 ) — — (4,364 ) Net (loss) income (35,237 ) (30,406 ) 29,214 1,009 77,949 — 42,529 (3,262 ) — 39,267 Equity in net income (loss) of subsidiaries: CFTC — — — — — — — 42,529 (42,529 ) — CURO Intermediate (30,406 ) — — — — 30,406 — — — — Guarantor Subsidiaries 29,214 — — — — (29,214 ) — — — — Non-Guarantor Subsidiaries 1,009 — — — — (1,009 ) — — — — SPV Subs 77,949 — — — — (77,949 ) — — — — Net income (loss) attributable to CURO $ 42,529 $ (30,406 ) $ 29,214 $ 1,009 $ 77,949 $ (77,766 ) $ 42,529 $ 39,267 $ (42,529 ) $ 39,267 Condensed Consolidating Statements of Cash Flows Six Months Ended June 30, 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 $ 204,323 $ 10,929 $ 93,690 $ 1,833 $ 1,544 $ 312,319 Net cash used in discontinued operating activities — (504 ) — — — (504 ) Cash flows from investing activities: Purchase of property, equipment and software (4,998 ) (1,166 ) — — — (6,164 ) Investment in Cognical Holdings (4,368 ) — — — — (4,368 ) Originations of loans, net (142,871 ) (3,227 ) (71,101 ) — — (217,199 ) Net cash (used in) provided by continuing investing activities (152,237 ) (4,393 ) (71,101 ) — — (227,731 ) Net cash used in discontinued investing activities — (14,213 ) — — — (14,213 ) Cash flows from financing activities: Proceeds from Non-Recourse U.S. SPV facility — — — — — — Payments on Non-Recourse U.S. SPV facility — — — — — — Proceeds from Non-Recourse Canada SPV facility — — 3,750 — — 3,750 Payments on Non-Recourse Canada SPV facility — — (24,752 ) — — (24,752 ) Proceeds from revolving credit facilities 30,000 38,002 — — — 68,002 Payments on revolving credit facilities (50,000 ) (38,002 ) — — — (88,002 ) Payments on subordinated stockholder debt — (2,245 ) — — — (2,245 ) Proceeds from exercise of stock options 69 — — (42 ) — 27 Debt issuance costs paid — — (169 ) (29 ) — (198 ) Repurchase of common stock — — — (1,762 ) — (1,762 ) Net cash used in provided by financing activities (1) (19,931 ) (2,245 ) (21,171 ) (1,833 ) — (45,180 ) Effect of exchange rate changes on cash and restricted cash — 2,444 561 — (1,544 ) 1,461 Net increase (decrease) in cash and restricted cash 32,155 (7,982 ) 1,979 — — 26,152 Cash and restricted cash at beginning of period 52,397 34,620 12,840 — — 99,857 Cash at end of period $ 84,552 $ 26,638 $ 14,819 $ — $ — $ 126,009 (1) Financing activities include continuing operations only and were not impacted by discontinued operations Six Months Ended June 30, 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 $ 87,848 $ — $ 38,259 $ 53,104 $ 67,767 $ 12,305 $ 259,283 $ (12,550 ) $ 246,733 Net cash provided by (used in) discontinued operating activities — — — 14,225 — (8,767 ) 5,458 — 5,458 Net cash provided by (used in) operating activities 87,848 — 38,259 67,329 67,767 3,538 264,741 (12,550 ) 252,191 Cash flows from investing activities: Purchase of property, equipment and software — — (1,983 ) (974 ) — — (2,957 ) — (2,957 ) Originations of loans, net — — (84,640 ) (48,795 ) (61,201 ) — (194,636 ) — (194,636 ) Investment in Cognical Holdings (958 ) — — — — — (958 ) — (958 ) Net cash (used in) provided by continuing investing activities (958 ) — (86,623 ) (49,769 ) (61,201 ) — (198,551 ) — (198,551 ) Net cash provided by (used in) discontinued investing activities — — — (14,349 ) — — (14,349 ) — (14,349 ) Net cash provided by (used in) investing activities (958 ) — (86,623 ) (64,118 ) (61,201 ) — (212,900 ) — (212,900 ) Cash flows from financing activities: Proceeds from Non-Recourse U.S. SPV facility — — — — 13,000 — 13,000 — 13,000 Payments on Non-Recourse U.S. SPV facility — — — — (19,163 ) — (19,163 ) — (19,163 ) Proceeds from revolving credit facilities 10,000 — — 8,798 — — 18,798 — 18,798 Payments on revolving credit facilities (10,000 ) — — (8,798 ) — — (18,798 ) — (18,798 ) Net proceeds from issuance of common stock — — — — — — — 12,431 12,431 Proceeds from exercise of stock options — — — — — — — 39 39 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 (90 ) — — (78 ) — — (168 ) — (168 ) Net cash (used in) provided by financing activities (1) (86,890 ) — — (78 ) (6,163 ) — (93,131 ) 12,470 (80,661 ) Effect of exchange rate changes on cash — — — (651 ) — (3,538 ) (4,189 ) — (4,189 ) Net (decrease) increase in cash and restricted cash — — (48,364 ) 2,482 403 — (45,479 ) (80 ) (45,559 ) 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 — — 70,692 50,966 7,274 — 128,932 — 128,932 Less: Cash and restricted cash at end of period of Discontinued Operations — — — 12,460 — — 12,460 — 12,460 Cash and restricted cash at end of period of Continuing Operations $ — $ — $ 70,692 $ 38,506 $ 7,274 $ — $ 116,472 $ — $ 116,472 |
SHARE REPURCHASE PROGRAM
SHARE REPURCHASE PROGRAM | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
SHARE REPURCHASE PROGRAM | 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, which commenced June 2019, 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. Under this program, the Company has repurchased 244,200 shares of common stock through June 30, 2019 . The table below summarizes share repurchase activity during the three and six months ended June 30, 2019 : Six Months Ended June 30, (in thousands, except per share amounts and number of share amounts) 2019 Total number of shares repurchased 244,200 Average price paid per share $ 10.26 Total value of shares repurchased $ 2,507 Total authorized repurchase amount $ 50,000 Total value of shares repurchased 2,507 Total remaining authorized repurchase amount $ 47,493 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Cognical Investment During July 2019, as part of the broader capital structure reorganization by the investee company described in Note 1 - "Summary of Significant Accounting Policies and Nature of Operations" and Note 8 - "Financial Instruments" , the Company purchased 10,695,187 additional preferred shares of Zibby for $4.0 million . As a result of this transaction, the Company's fully-diluted ownership in Zibby increased to 42.3% . Share Repurchase Program The Company repurchased 989,500 shares from July 1, 2019 through August 2, 2019: July 1 - August 2 (in thousands, except per share amounts and number of share amounts) 2019 Total number of shares repurchased 989,500 Average price paid per share $ 10.85 Total value of shares repurchased $ 10,731 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS (Policies) | 6 Months Ended |
Jun. 30, 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 ("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 filed with the Securities and Exchange Commission (the "SEC") on March 18, 2019 ("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. Additionally, in September 2018, and subsequently expanded in June 2019, the SEC changed the definition of a smaller reporting company ("SRC"). The change in definition of an SRC would allow more registrants to qualify to report under scaled disclosure requirements. Under these rules, CURO meets the definition of an SRC as of June 30, 2019. The 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 United Kingdom ("U.K.") operations were 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") issued 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. Due to the adoption of the new standard, the right of use assets ("ROU assets") and additional operating lease liabilities ("lease liabilities") as of June 30, 2019 were $141.0 million and $148.8 million , respectively. 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. Recently Issued Accounting Pronouncements Not Yet Adopted Accounting Pronouncements Related to the Current Expected Credit Loss ("CECL") Standard ASU 2016-13 In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” and subsequent amendments to the guidance: ASU 2018-19 in November 2018, ASU 2019-04 in April 2019, and ASU 2019-05 in May 2019. The standard, as amended, changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard will replace the current “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. For available-for-sale debt securities, entities will be required to record allowances rather than reduce the carrying amount, as they currently do under the other-than-temporary impairment model. The standard also simplifies the accounting model for purchased credit-impaired debt securities and loans. The amendment will affect loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. ASU 2019-04 clarifies that equity instruments without readily determinable fair values for which an entity has elected the measurement alternative should be remeasured to fair value as of the date that an observable transaction occurred. ASU 2019-05 provides an option to irrevocably elect to measure certain individual financial assets at fair value instead of amortized cost. The amendments should be applied on either a prospective transition or modified-retrospective approach depending on the subtopic. As issued, this ASU 2016-13 is effective for annual periods beginning after December 15, 2019, and interim periods therein. Early adoption is permitted for annual periods beginning after December 15, 2018, and interim periods therein. The Company is evaluating its alternatives with respect to the available accounting methods under ASU 2016‑13, including the fair value option. If the fair value option is not utilized, adoption of ASU 2016-13 will increase the allowance for credit losses with a resulting negative adjustment to retained earnings on the date of adoption. Additionally, as disclosed below, the Company is evaluating the impact of the FASB's definition of a SRC to the adoption of ASU 2016-13. ASU 2019-05 In May 2019, the FASB issued ASU 2019-05, which amends ASU 2016-13 to allow companies to irrevocably elect, upon adoption of ASU 2016-13, the fair value option on financial instruments that (i) were previously recorded at amortized cost and (ii) are within the scope of ASC 326-203 if the instruments are eligible for the fair value option under ASC 825-10. The fair value option election does not apply to held-to-maturity debt securities. Entities are required to make this election on an instrument-by-instrument basis. ASU 2019-05’s amendments should be applied on a modified-retrospective basis by means of a cumulative-effect adjustment to the opening balance of retained earnings in the statement of financial position as of the date that an entity adopted the amendments in ASU 2016-13. For entities that have adopted ASU 2016-13, the amendments in ASU 2019-05 are effective for fiscal years beginning after December 15, 2019, including interim periods therein. An entity may early adopt the ASU in any interim period after its issuance if the entity has adopted ASU 2016-13. For all other entities, the effective date will be the same as the effective date for ASU 2016-13. We are currently evaluating the methods and impact of adopting this new standard on the Condensed Consolidated Financial Statements. ASU 2019-04 In May 2019, the FASB issued ASU 2019-04, which clarifies certain aspects of accounting for credit losses, hedging activities, and financial instruments. The ASU’s amendments apply to all entities within the scope of the affected guidance. Accrued interest - Amortized cost basis is defined in ASU 2016-13 as "the amount at which a financing receivable or investment is originated or acquired, adjusted for applicable accrued interest, accretion or amortization of premium, discount, and net deferred fees or costs, collection of cash, write-offs, foreign exchange, and fair value hedge accounting adjustments". To address stakeholders’ concerns that the inclusion of accrued interest in the definition of amortized cost basis could make application of the credit loss guidance operationally burdensome, ASU 2019-04 provides certain alternatives for the measurement of the allowance for credit losses (ALL) on accrued interest receivable (AIR). These measurement alternatives include (1) measuring an ALL on AIR separately, (2) electing to provide separate disclosure of the AIR component of amortized cost as a practical expedient, and (3) making accounting policy elections to simplify certain aspects of the presentation and measurement of such AIR. As issued, for entities that have adopted ASU 2016-13, the amendments in ASU 2019-04 related to ASU 2016-13 are effective for fiscal years beginning after December 15, 2019, and interim periods therein. ASU 2019-04’s amendments should be applied "on a modified-retrospective basis by means of a cumulative-effect adjustment to the opening retained earnings balance in the statement of financial position as of the date an entity adopted the amendments in ASU 2016-13." Certain disclosures are also required. For all other entities, the effective date will be the same as the effective date in ASU 2016-13. FASB Definition of a Smaller Reporting Company ("SRC") as related to the CECL standard and evaluation of the impact of the CECL standard On July 17, 2019, the FASB issued for a 30-day comment period a draft proposal that would reconsider its philosophy for establishing effective dates for major projects for certain classes of companies, including SRCs. Under current SEC definitions, CURO meets the definition of an SRC as of June 30, 2019. The proposed standard would defer required adoption of the CECL standard for SRCs until fiscal periods beginning after December 15, 2022. The Company will continue to monitor the standard setting activities of the FASB and evaluate their potential impact on the adoption of accounting standards such as ASU 2016-13 and ASU 2019-04. We are currently evaluating the methods and impact of adopting the CECL standard on the Condensed Consolidated Financial Statements. SEC Disclosure Update In August 2018, the 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 and six months ended June 30, 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, it 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. |
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) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Impact of the Correction | The Company has revised its Condensed Consolidated Financial Statements for the six months ended June 30, 2018 presented in this Form 10-Q. A summary of the correction follows: (dollars in thousands) Six Months Ended June 30, 2018 As Reported: (1) Net cash provided by continuing operating activities $ 52,097 Net cash used in continuing investing activities (3,915 ) As Corrected: Net cash provided by continuing operating activities 246,733 Net cash used in continuing investing activities (198,551 ) (1) "As reported" balances include amounts from continuing operations historically presented within these captions. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 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) June 30, 2019 December 31, 2018 Assets Restricted cash $ 14,819 $ 12,840 Gross loans receivable less allowance for loan losses 190,121 136,187 Total Assets $ 204,940 $ 149,027 Liabilities Accounts payable and accrued liabilities $ 15,020 $ 4,980 Deferred revenue 45 40 Accrued interest 713 831 Long-term debt 90,977 107,479 Total Liabilities $ 106,755 $ 113,330 |
LOANS RECEIVABLE AND REVENUE (T
LOANS RECEIVABLE AND REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Summary of Revenue by Product | The following table summarizes revenue by product for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2019 2018 2019 2018 Unsecured Installment $ 122,112 $ 114,936 $ 257,890 $ 240,315 Secured Installment 26,076 25,777 53,553 52,633 Open-End 54,972 27,222 107,841 54,445 Single-Pay 45,528 58,325 92,289 118,682 Ancillary 15,612 10,909 30,666 21,937 Total revenue $ 264,300 $ 237,169 $ 542,239 $ 488,012 |
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 June 30, 2019: June 30, 2019 (in thousands) Single-Pay Unsecured Installment Secured Installment Open-End Total Current loans receivable $ 76,126 $ 126,685 $ 71,218 $ 247,915 $ 521,944 Delinquent loans receivable — 38,037 14,216 35,396 87,649 Total loans receivable 76,126 164,722 85,434 283,311 609,593 Less: allowance for losses (4,941 ) (35,223 ) (9,996 ) (51,717 ) (101,877 ) Loans receivable, net $ 71,185 $ 129,499 $ 75,438 $ 231,594 $ 507,716 June 30, 2019 (in thousands) Unsecured Installment Secured Installment Open-End Total Delinquent loans receivable 0-30 days past due $ 14,995 $ 7,096 $ 14,997 $ 37,088 31-60 days past due 11,176 3,358 9,455 23,989 61-90 days past due 11,866 3,762 10,944 26,572 Total delinquent loans receivable $ 38,037 $ 14,216 $ 35,396 $ 87,649 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 June 30, 2019: June 30, 2019 (in thousands) Unsecured Installment Secured Installment Total Current loans receivable guaranteed by the Company $ 54,968 $ 1,930 $ 56,898 Delinquent loans receivable guaranteed by the Company 10,087 354 10,441 Total loans receivable guaranteed by the Company 65,055 2,284 67,339 Less: Liability for losses on CSO lender-owned consumer loans (9,433 ) (71 ) (9,504 ) Loans receivable guaranteed by the Company, net $ 55,622 $ 2,213 $ 57,835 June 30, 2019 (in thousands) Unsecured Installment Secured Installment Total Delinquent loans receivable 0-30 days past due $ 8,511 $ 299 $ 8,810 31-60 days past due 1,052 37 1,089 61-90 days past due 524 18 542 Total delinquent loans receivable $ 10,087 $ 354 $ 10,441 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 June 30, 2018 : Three Months Ended June 30, 2018 (in thousands) Single-Pay Unsecured Installment Secured Installment Open-End Other Total Balance, beginning of period $ 3,514 $ 33,638 $ 11,639 $ 6,846 $ — $ 55,637 Charge-offs (41,242 ) (31,612 ) (11,082 ) (23,807 ) (593 ) (108,336 ) Recoveries 28,266 5,085 2,296 11,883 38 47,568 Net charge-offs (12,976 ) (26,527 ) (8,786 ) (11,924 ) (555 ) (60,768 ) Provision for losses 13,101 23,219 7,533 14,848 555 59,256 Effect of foreign currency translation (35 ) (39 ) — (53 ) — (127 ) Balance, end of period $ 3,604 $ 30,291 $ 10,386 $ 9,717 $ — $ 53,998 Allowance for loan losses as a percentage of gross loan receivables 4.3 % 18.9 % 12.3 % 10.7 % N/A 12.8 % The following table summarizes activity in the allowance for loan losses during the six months ended June 30, 2019 : Six Months Ended June 30, 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 (72,280 ) (81,573 ) (22,966 ) (34,326 ) (2,693 ) (213,838 ) Recoveries 52,212 11,684 5,816 10,696 1,721 82,129 Net charge-offs (20,068 ) (69,889 ) (17,150 ) (23,630 ) (972 ) (131,709 ) Provision for losses 20,714 67,359 14,955 54,690 972 158,690 Effect of foreign currency translation 106 37 — 756 — 899 Balance, end of period $ 4,941 $ 35,223 $ 9,996 $ 51,717 $ — $ 101,877 Allowance for loan losses as a percentage of gross loan receivables 6.5 % 21.4 % 11.7 % 18.3 % N/A 16.7 % The following table summarizes activity in the allowance for loan losses during the three months ended June 30, 2019 : Three Months Ended June 30, 2019 (in thousands) Single-Pay Unsecured Installment Secured Installment Open-End Other Total Balance, beginning of period $ 3,897 $ 33,666 $ 9,796 $ 46,963 $ — $ 94,322 Charge-offs (35,759 ) (37,336 ) (10,295 ) (30,688 ) (1,342 ) (115,420 ) Recoveries 24,301 5,366 2,693 5,537 822 38,719 Net charge-offs (11,458 ) (31,970 ) (7,602 ) (25,151 ) (520 ) (76,701 ) Provision for losses 12,446 33,514 7,802 29,373 520 83,655 Effect of foreign currency translation 56 13 — 532 — 601 Balance, end of period $ 4,941 $ 35,223 $ 9,996 $ 51,717 $ — $ 101,877 Allowance for loan losses as a percentage of gross loan receivables 6.5 % 21.4 % 11.7 % 18.3 % N/A 16.7 % The following table summarizes activity in the allowance for loan losses during the six months ended June 30, 2018 : Six Months Ended June 30, 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 (85,578 ) (66,831 ) (22,567 ) (44,156 ) (1,268 ) (220,400 ) Recoveries 61,084 10,303 5,162 21,260 85 97,894 Net charge-offs (24,494 ) (56,528 ) (17,405 ) (22,896 ) (1,183 ) (122,506 ) Provision for losses 22,993 47,958 14,319 26,276 1,183 112,729 Effect of foreign currency translation (99 ) (116 ) — (89 ) — (304 ) Balance, end of period $ 3,604 $ 30,291 $ 10,386 $ 9,717 $ — $ 53,998 Allowance for loan losses as a percentage of gross loan receivables 4.3 % 18.9 % 12.3 % 10.7 % N/A 12.8 % |
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 six months ended June 30, 2019 : Six Months Ended (in thousands) Unsecured Installment Secured Installment Total Balance, beginning of period $ 11,582 $ 425 $ 12,007 Charge-offs (75,545 ) (1,760 ) (77,305 ) Recoveries 17,638 1,459 19,097 Net charge-offs (57,907 ) (301 ) (58,208 ) Provision for losses 55,758 (53 ) 55,705 Balance, end of period $ 9,433 $ 71 $ 9,504 The following table summarizes activity in the liability for losses on CSO lender-owned consumer loans during the three months ended June 30, 2019 : Three Months Ended (in thousands) Unsecured Installment Secured Installment Total Balance, beginning of period $ 8,583 $ 78 $ 8,661 Charge-offs (34,564 ) (683 ) (35,247 ) Recoveries 7,078 657 7,735 Net charge-offs (27,486 ) (26 ) (27,512 ) Provision for losses 28,336 19 28,355 Balance, end of period $ 9,433 $ 71 $ 9,504 The following table summarizes activity in the liability for losses on CSO lender-owned consumer loans during the three months ended June 30, 2018 : Three Months Ended June 30, 2018 (in thousands) Unsecured Installment Secured Installment Total Balance, beginning of period $ 9,886 $ 526 $ 10,412 Charge-offs (33,017 ) (993 ) (34,010 ) Recoveries 7,350 776 8,126 Net charge-offs (25,667 ) (217 ) (25,884 ) Provision for losses 26,974 117 27,091 Balance, end of period $ 11,193 $ 426 $ 11,619 The following table summarizes activity in the liability for losses on CSO lender-owned consumer loans during the six months ended June 30, 2018 : Six Months Ended (in thousands) Unsecured Installment Secured Installment Total Balance, beginning of period $ 17,073 $ 722 $ 17,795 Charge-offs (74,736 ) (2,212 ) (76,948 ) Recoveries 18,326 1,945 20,271 Net charge-offs (56,410 ) (267 ) (56,677 ) Provision for losses 50,530 (29 ) 50,501 Balance, end of period $ 11,193 $ 426 $ 11,619 |
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 six months ended June 30, 2018 : Six Months Ended June 30, 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 (85,578 ) (141,567 ) (24,779 ) (44,156 ) (1,268 ) (297,348 ) Recoveries 61,084 28,629 7,107 21,260 85 118,165 Net charge-offs (24,494 ) (112,938 ) (17,672 ) (22,896 ) (1,183 ) (179,183 ) Provision for losses 22,993 98,488 14,290 26,276 1,183 163,230 Effect of foreign currency translation (99 ) (116 ) — (89 ) — (304 ) Balance, end of period $ 3,604 $ 41,484 $ 10,812 $ 9,717 $ — $ 65,617 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 June 30, 2019 : Three Months Ended June 30, 2019 (in thousands) Single-Pay Unsecured Installment Secured Installment Open-End Other Total Balance, beginning of period $ 3,897 $ 42,249 $ 9,874 $ 46,963 $ — $ 102,983 Charge-offs (35,759 ) (71,900 ) (10,978 ) (30,688 ) (1,342 ) (150,667 ) Recoveries 24,301 12,444 3,350 5,537 822 46,454 Net charge-offs (11,458 ) (59,456 ) (7,628 ) (25,151 ) (520 ) (104,213 ) Provision for losses 12,446 61,850 7,821 29,373 520 112,010 Effect of foreign currency translation 56 13 — 532 — 601 Balance, end of period $ 4,941 $ 44,656 $ 10,067 $ 51,717 $ — $ 111,381 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 June 30, 2018 : Three Months Ended June 30, 2018 (in thousands) Single-Pay Unsecured Installment Secured Installment Open-End Other Total Balance, beginning of period $ 3,514 $ 43,524 $ 12,165 $ 6,846 $ — $ 66,049 Charge-offs (41,242 ) (64,629 ) (12,075 ) (23,807 ) (593 ) (142,346 ) Recoveries 28,266 12,435 3,072 11,883 38 55,694 Net charge-offs (12,976 ) (52,194 ) (9,003 ) (11,924 ) (555 ) (86,652 ) Provision for losses 13,101 50,193 7,650 14,848 555 86,347 Effect of foreign currency translation (35 ) (39 ) — (53 ) — (127 ) Balance, end of period $ 3,604 $ 41,484 $ 10,812 $ 9,717 $ — $ 65,617 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 six months ended June 30, 2019 : Six Months Ended June 30, 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 (72,280 ) (157,118 ) (24,726 ) (34,326 ) (2,693 ) (291,143 ) Recoveries 52,212 29,322 7,275 10,696 1,721 101,226 Net charge-offs (20,068 ) (127,796 ) (17,451 ) (23,630 ) (972 ) (189,917 ) Provision for losses 20,714 123,117 14,902 54,690 972 214,395 Effect of foreign currency translation 106 37 — 756 — 899 Balance, end of period $ 4,941 $ 44,656 $ 10,067 $ 51,717 $ — $ 111,381 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt consisted of the following: (in thousands) June 30, 2019 December 31, 2018 8.25% Senior Secured Notes (due 2025) $ 677,535 $ 676,661 Non-Recourse Canada SPV Facility 90,977 107,479 Senior Revolver — 20,000 Long-term debt $ 768,512 $ 804,140 |
SHARE-BASED COMPENSATION Tables
SHARE-BASED COMPENSATION Tables (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Restricted Stock Activity | A summary of the status of time-based and market-based RSUs as of June 30, 2019 and changes during the six months ended June 30, 2019 are presented in the following table: Number of RSUs Time-Based Market-Based Weighted Average Grant Date Fair Value per Share December 31, 2018 1,060,350 — $ 14.29 Granted 579,540 394,755 10.07 Vested (83,481 ) — 15.59 Forfeited (68,778 ) — 14.05 June 30, 2019 1,487,631 394,755 $ 12.06 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2019 : Estimated Fair Value (in thousands) Carrying Value June 30, Level 1 Level 2 Level 3 Total Financial assets: Cash $ 92,297 $ 92,297 $ — $ — $ 92,297 Restricted cash 33,712 33,712 — — 33,712 Loans receivable, net 507,716 — — 507,716 507,716 Investment in Cognical 7,178 — — 7,178 7,178 Financial liabilities: Liability for losses on CSO lender-owned consumer loans $ 9,504 $ — $ — $ 9,504 $ 9,504 8.25% Senior Secured Notes 677,535 — — 574,211 574,211 Non-Recourse Canada SPV facility 90,977 — — 94,565 94,565 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 Total 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) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of Stockholders Equity | The following table summarizes the changes in stockholders' equity for the three and six months ended June 30, 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 Net income from continuing operations — — — 18,718 — 18,718 Net loss from discontinued operations — — — (2,743 ) — (2,743 ) Foreign currency translation adjustment — — — — (6,754 ) (6,754 ) Cash flow hedge expiration — — — — (439 ) (439 ) Share based compensation expense — — 1,478 — — 1,478 Proceeds from exercise of stock options 209,132 — 39 — — 39 Common stock issued for RSU's vesting 49,994 — — — — — Balances at June 30, 2018 45,820,545 $ 9 $ 62,573 $ 43,255 $ (52,988 ) $ 52,849 (1) Accumulated other comprehensive income (loss) Common Stock Paid-in capital Treasury Stock 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 Net income from continuing operations — — — — 17,667 — 17,667 Net income from discontinued operations — — — — (834 ) — (834 ) Foreign currency translation adjustment — — — — — 3,635 3,635 Share based compensation expense — — 2,644 — — — 2,644 Proceeds from exercise of stock options 4,908 — 29 — — — 29 Purchase of shares under the stock repurchase program (244,200 ) — — (2,507 ) — — (2,507 ) Common stock issued for RSU's vesting, net of shares withheld and withholding paid for employee taxes 63,285 — — — — — — Balances at June 30, 2019 46,255,282 $ 9 $ 64,790 $ (2,507 ) $ 35,816 $ (40,730 ) $ 57,378 (1) Accumulated other comprehensive income (loss) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 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 Six Months Ended 2019 2018 2019 2018 Net income from continuing operations $ 17,667 $ 18,718 $ 46,340 $ 43,631 Net income (loss) from discontinued operations, net of tax (834 ) (2,743 ) $ 7,541 $ (4,364 ) Net income $ 16,833 $ 15,975 $ 53,881 $ 39,267 Weighted average common shares - basic 46,451 45,650 46,438 45,578 Dilutive effect of stock options and restricted stock units 656 2,346 897 2,179 Weighted average common shares - diluted 47,107 47,996 47,335 47,757 Basic income (loss) per share: Continuing operations $ 0.38 $ 0.41 $ 1.00 $ 0.96 Discontinued operations (0.02 ) (0.06 ) 0.16 (0.10 ) Basic income per share $ 0.36 $ 0.35 $ 1.16 $ 0.86 Diluted income (loss) per share: Continuing operations $ 0.38 $ 0.39 $ 0.98 $ 0.92 Discontinued operations (0.02 ) (0.06 ) 0.16 (0.10 ) Diluted income per share $ 0.36 $ 0.33 $ 1.14 $ 0.82 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | The following table provides supplemental cash flow information: Six Months Ended (dollars in thousands) 2019 2018 Cash paid for: Interest $ 34,678 $ 44,250 Income taxes 4,231 11,621 Non-cash investing activities: Property and equipment accrued in accounts payable $ 105 $ 595 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Summary of Financial Information by Segment | The following table illustrates summarized financial information concerning reportable segments. Three Months Ended Six Months Ended (dollars in thousands) 2019 2018 2019 2018 Revenues by segment: U.S. $ 210,046 $ 190,126 $ 436,165 $ 394,719 Canada 54,254 47,043 106,074 93,293 Consolidated revenue $ 264,300 $ 237,169 $ 542,239 $ 488,012 Gross margin by segment: U.S. $ 65,067 $ 64,048 $ 154,870 $ 155,392 Canada 16,114 13,300 31,808 27,802 Consolidated gross margin $ 81,181 $ 77,348 $ 186,678 $ 183,194 Segment operating income: U.S. $ 17,029 $ 15,362 $ 48,224 $ 42,194 Canada 8,091 8,534 15,615 18,082 Consolidated operating profit $ 25,120 $ 23,896 $ 63,839 $ 60,276 Expenditures for long-lived assets by segment: U.S. $ 2,568 $ 1,195 $ 4,998 $ 1,983 Canada 477 220 1,166 974 Consolidated expenditures for long-lived assets $ 3,045 $ 1,415 $ 6,164 $ 2,957 The following table provides gross loans receivable by segment: (dollars in thousands) June 30, December 31, U.S. $ 340,968 $ 361,473 Canada 268,625 210,058 Total gross loans receivable $ 609,593 $ 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) June 30, 2019 December 31, 2018 U.S. $ 44,209 $ 47,918 Canada 28,784 28,832 Total net long-lived assets $ 72,993 $ 76,750 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2019: (in thousands) Third-Party Related-Party Total 2019 $ 15,517 $ 1,840 $ 17,357 2020 30,735 3,752 34,487 2021 30,344 3,852 34,196 2022 29,353 3,909 33,262 2023 25,280 3,616 28,896 Thereafter 44,277 10,883 55,160 Total 175,506 27,852 203,358 Less: Imputed interest (45,852 ) (8,663 ) (54,515 ) Operating lease liabilities $ 129,654 $ 19,189 $ 148,843 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 6 Months Ended |
Jun. 30, 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 Six Months Ended June 30, (in thousands) 2019 2018 2019 (1) 2018 Revenue $ — $ 11,814 $ 6,957 $ 22,729 Provision for losses — 5,639 1,703 9,787 Net revenue — 6,175 5,254 12,942 Cost of providing services Office — 545 246 1,073 Other costs of providing services — 125 61 1,094 Advertising — 2,441 775 4,312 Total cost of providing services — 3,111 1,082 6,479 Gross margin — 3,064 4,172 6,463 Operating expense (income) Corporate, district and other expenses — 5,675 3,810 10,700 Interest income — (7 ) (4 ) (12 ) Loss on disposition — — 39,414 — Total operating expense — 5,668 43,220 10,688 Pre-tax (loss) income from operations of discontinued operations — (2,604 ) (39,048 ) (4,225 ) Income tax expense (benefit) related to disposition 834 139 (46,589 ) 139 Net income (loss) from discontinued operations $ (834 ) $ (2,743 ) $ 7,541 $ (4,364 ) (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) June 30, 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 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: Six Months Ended June 30, (in thousands) 2019 (1) 2018 Net cash (used in) / provided by discontinued operating activities $ (504 ) $ 5,458 Net cash used in discontinued investing activities (14,213 ) (14,349 ) 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) | 6 Months Ended |
Jun. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets June 30, 2019 (dollars in thousands) Subsidiary Guarantors Subsidiary Non-Guarantors Canada SPV CURO Eliminations CURO Assets: Cash $ 68,354 $ 23,943 $ — $ — $ — $ 92,297 Restricted cash 16,198 2,695 14,819 — — 33,712 Loans receivable, net 269,298 48,297 190,121 — — 507,716 Right of use asset - operating leases 79,000 61,982 — — — 140,982 Deferred income taxes (7,848 ) — — 10,485 — 2,637 Income taxes receivable (470 ) 6,395 — 31,654 — 37,579 Prepaid expenses and other 23,038 7,203 — — — 30,241 Property and equipment, net 44,209 28,784 — — — 72,993 Goodwill 91,131 29,319 — — — 120,450 Other intangibles, net 8,420 22,237 — — — 30,657 Intercompany receivable 107,251 — — — (107,251 ) — Investment in subsidiaries — — — (1,515 ) 1,515 — Other 15,401 690 — — — 16,091 Total assets $ 713,982 $ 231,545 $ 204,940 $ 40,624 $ (105,736 ) $ 1,085,355 Liabilities and Stockholders' equity: Accounts payable and accrued liabilities $ 44,667 $ (1,166 ) $ 15,020 $ 753 $ — $ 59,274 Deferred revenue 5,237 3,430 45 — — 8,712 Lease liability - operating leases 86,685 62,158 — — — 148,843 Income taxes payable (18,731 ) — — 18,731 — — Accrued interest 2 — 713 18,975 — 19,690 Payable to CURO Holdings Corp. 736,920 — — (736,920 ) — — CSO liability for losses 9,504 — — — — 9,504 Long-term debt — — 90,976 677,536 — 768,512 Intercompany payable — 20,002 87,249 — (107,251 ) — Other liabilities 7,999 595 — — — 8,594 Deferred tax liabilities (4,171 ) 4,848 — 4,171 — 4,848 Total liabilities 868,112 89,867 194,003 (16,754 ) (107,251 ) 1,027,977 Stockholder’s equity (154,130 ) 141,678 10,937 57,378 1,515 57,378 Total liabilities and stockholder’s equity $ 713,982 $ 231,545 $ 204,940 $ 40,624 $ (105,736 ) $ 1,085,355 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 June 30, 2019 (dollars in thousands) Subsidiary Subsidiary Canada SPV CURO Eliminations CURO Revenue $ 210,046 $ 28,162 $ 26,092 $ — $ — $ 264,300 Provision for losses 92,552 6,344 13,114 — — 112,010 Net revenue 117,494 21,818 12,978 — — 152,290 Cost of providing services: Salaries and benefits 17,422 8,664 — — — 26,086 Occupancy 8,033 5,899 — — — 13,932 Office 4,004 1,453 — — — 5,457 Other costs of providing services 11,789 1,065 — — — 12,854 Advertising 11,179 1,601 — — — 12,780 Total cost of providing services 52,427 18,682 — — — 71,109 Gross margin 65,067 3,136 12,978 — — 81,181 Operating (income) expense: Corporate, district and other expenses 30,766 6,422 (781 ) 2,631 — 39,038 Intercompany management fee (3,237 ) 3,229 8 — — — Interest expense 27 7 2,375 14,614 — 17,023 Intercompany interest (income) expense (1,513 ) 890 623 — — — Total operating expense 26,043 10,548 2,225 17,245 — 56,061 Income (loss) from continuing operations before income taxes 39,024 (7,412 ) 10,753 (17,245 ) — 25,120 Provision (benefit) for income tax expense 9,591 1,094 — (3,232 ) — 7,453 Net income (loss) from continuing operations 29,433 (8,506 ) 10,753 (14,013 ) — 17,667 Net loss on discontinued operations — (834 ) — — — (834 ) Net (loss) income 29,433 (9,340 ) 10,753 (14,013 ) — 16,833 Equity in net income (loss) of subsidiaries: CFTC — — — 30,846 (30,846 ) — Guarantor Subsidiaries 29,433 — — — (29,433 ) — Non-Guarantor Subsidiaries (9,340 ) — — — 9,340 — SPV Subs 10,753 — — — (10,753 ) — Net income (loss) attributable to CURO $ 60,279 $ (9,340 ) $ 10,753 $ 16,833 $ (61,692 ) $ 16,833 Three Months Ended June 30, 2018 (dollars in thousands) CFTC CURO Intermediate Subsidiary Guarantors Subsidiary Non-Guarantors SPV Subs Eliminations CFTC Consolidated CURO Eliminations CURO Consolidated Revenue $ — $ — $ 118,034 $ 47,043 $ 72,092 $ — $ 237,169 $ — $ — $ 237,169 Provision for losses — — 46,320 14,360 25,667 — 86,347 — — 86,347 Net revenue — — 71,714 32,683 46,425 — 150,822 — — 150,822 Cost of providing services: Salaries and benefits — — 18,070 8,838 — — 26,908 — — 26,908 Occupancy — — 7,643 5,677 — — 13,320 — — 13,320 Office — — 4,247 1,285 — — 5,532 — — 5,532 Other store operating expenses — — 11,254 881 466 — 12,601 — — 12,601 Advertising — — 12,409 2,704 — — 15,113 — — 15,113 Total cost of providing services — — 53,623 19,385 466 — 73,474 — — 73,474 Gross Margin — — 18,091 13,298 45,959 — 77,348 — — 77,348 Operating (income) expense: Corporate, district and other expenses 458 18 25,383 4,759 46 — 30,664 2,316 — 32,980 Intercompany management fee — — (6,920 ) 3,281 3,639 — — — — — Interest expense 16,585 — (60 ) 7 3,940 — 20,472 — — 20,472 Intercompany interest (income) expense — (904 ) (180 ) 1,084 — — — — — — Loss on extinguishment of debt — — — — — — — — — — Total operating expense 17,043 (886 ) 18,223 9,131 7,625 — 51,136 2,316 — 53,452 (Loss) income from continuing operations before income taxes (17,043 ) 886 (132 ) 4,167 38,334 — 26,212 (2,316 ) — 23,896 (Benefit) provision for income tax expense (5,418 ) 13,668 (4,458 ) 1,962 — — 5,754 (576 ) — 5,178 Net (loss) income from continuing operations (11,625 ) (12,782 ) 4,326 2,205 38,334 — 20,458 (1,740 ) — 18,718 Net loss from discontinued operations — — — (2,743 ) — — (2,743 ) — — (2,743 ) Net (loss) income (11,625 ) (12,782 ) 4,326 (538 ) 38,334 — 17,715 (1,740 ) — 15,975 Equity in net income (loss) of subsidiaries: CFTC — — — — — — — 20,458 (20,458 ) — CURO Intermediate (12,782 ) — — — — 12,782 — — — — Guarantor Subsidiaries 4,326 — — — — (4,326 ) — — — — Non-Guarantor Subsidiaries 2,205 — — — — (2,205 ) — — — — SPV Subs 38,334 — — — — (38,334 ) — — — — Net income (loss) attributable to CURO $ 20,458 $ (12,782 ) $ 4,326 $ (538 ) $ 38,334 $ (32,083 ) $ 17,715 $ 18,718 $ (20,458 ) $ 15,975 Six Months Ended June 30, 2019 (dollars in thousands) Subsidiary Subsidiary Canada SPV CURO Eliminations CURO Revenue $ 436,165 $ 54,936 $ 51,138 $ — $ — $ 542,239 Provision for losses 177,532 10,443 26,420 — — 214,395 Net revenue 258,633 44,493 24,718 — — 327,844 Cost of providing services: Salaries and benefits 37,373 17,414 — — — 54,787 Occupancy 16,043 12,126 — — — 28,169 Office 7,893 2,677 — — — 10,570 Other costs of providing services 24,921 2,153 — — — 27,074 Advertising 17,533 3,033 — — — 20,566 Total cost of providing services 103,763 37,403 — — — 141,166 Gross margin 154,870 7,090 24,718 — — 186,678 Operating (income) expense: Corporate, district and other expenses 72,304 11,604 (755 ) 4,973 — 88,126 Intercompany management fee (6,300 ) 6,284 16 — — — Interest expense 317 79 5,265 29,052 — 34,713 Intercompany interest (income) expense (2,393 ) 1,770 623 — — — Total operating expense 63,928 19,737 5,149 34,025 — 122,839 Income (loss) from continuing operations before income taxes 90,942 (12,647 ) 19,569 (34,025 ) — 63,839 Provision (benefit) for income tax expense 23,610 2,129 — (8,240 ) — 17,499 Net income (loss) from continuing operations 67,332 (14,776 ) 19,569 (25,785 ) — 46,340 Net loss on discontinued operations — 7,541 — — — 7,541 Net (loss) income 67,332 (7,235 ) 19,569 (25,785 ) — 53,881 Equity in net income (loss) of subsidiaries: CFTC — — — 79,666 (79,666 ) — Guarantor Subsidiaries 67,332 — — — (67,332 ) — Non-Guarantor Subsidiaries (7,235 ) — — — 7,235 — SPV Subs 19,569 — — — (19,569 ) — Net income (loss) attributable to CURO $ 146,998 $ (7,235 ) $ 19,569 $ 53,881 $ (159,332 ) $ 53,881 Six Months Ended June 30, 2018 (dollars in thousands) CFTC CURO Intermediate Subsidiary Guarantors Subsidiary Non-Guarantors SPV Subs Eliminations CFTC Consolidated CURO Eliminations CURO Consolidated Revenue $ — $ — $ 246,442 $ 93,293 $ 148,277 $ — $ 488,012 $ — $ — $ 488,012 Provision for losses — — 82,089 26,910 54,231 — 163,230 — — 163,230 Net revenue — — 164,353 66,383 94,046 — 324,782 — — 324,782 Cost of providing services: Salaries and benefits — — 36,089 17,737 — — 53,826 — — 53,826 Occupancy — — 15,289 11,458 — — 26,747 — — 26,747 Office — — 9,830 2,155 — — 11,985 — — 11,985 Other store operating expenses — — 23,284 1,801 947 — 26,032 — — 26,032 Advertising — — 17,568 5,430 — — 22,998 — — 22,998 Total cost of providing services — — 102,060 38,581 947 — 141,588 — — 141,588 Gross Margin — — 62,293 27,802 93,099 — 183,194 — — 183,194 Operating (income) expense: Corporate, district and other expenses 906 25 53,375 9,656 76 — 64,038 4,371 — 68,409 Intercompany management fee — — (13,822 ) 6,775 7,047 — — — — — Interest expense 34,907 — (172 ) 64 8,027 — 42,826 — — 42,826 Intercompany interest (income) expense — (1,784 ) (259 ) 2,043 — — — — — — Loss on extinguishment of debt 11,683 — — — — — 11,683 — — 11,683 Total operating expense 47,496 (1,759 ) 39,122 18,538 15,150 — 118,547 4,371 — 122,918 (Loss) income from continuing operations before income taxes (47,496 ) 1,759 23,171 9,264 77,949 — 64,647 (4,371 ) — 60,276 (Benefit) provision for income tax expense (12,259 ) 32,165 (6,043 ) 3,891 — — 17,754 (1,109 ) — 16,645 Net (loss) income from continuing operations (35,237 ) (30,406 ) 29,214 5,373 77,949 — 46,893 (3,262 ) — 43,631 Net loss from discontinued operations — — — (4,364 ) — — (4,364 ) — — (4,364 ) Net (loss) income (35,237 ) (30,406 ) 29,214 1,009 77,949 — 42,529 (3,262 ) — 39,267 Equity in net income (loss) of subsidiaries: CFTC — — — — — — — 42,529 (42,529 ) — CURO Intermediate (30,406 ) — — — — 30,406 — — — — Guarantor Subsidiaries 29,214 — — — — (29,214 ) — — — — Non-Guarantor Subsidiaries 1,009 — — — — (1,009 ) — — — — SPV Subs 77,949 — — — — (77,949 ) — — — — Net income (loss) attributable to CURO $ 42,529 $ (30,406 ) $ 29,214 $ 1,009 $ 77,949 $ (77,766 ) $ 42,529 $ 39,267 $ (42,529 ) $ 39,267 |
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows Six Months Ended June 30, 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 $ 204,323 $ 10,929 $ 93,690 $ 1,833 $ 1,544 $ 312,319 Net cash used in discontinued operating activities — (504 ) — — — (504 ) Cash flows from investing activities: Purchase of property, equipment and software (4,998 ) (1,166 ) — — — (6,164 ) Investment in Cognical Holdings (4,368 ) — — — — (4,368 ) Originations of loans, net (142,871 ) (3,227 ) (71,101 ) — — (217,199 ) Net cash (used in) provided by continuing investing activities (152,237 ) (4,393 ) (71,101 ) — — (227,731 ) Net cash used in discontinued investing activities — (14,213 ) — — — (14,213 ) Cash flows from financing activities: Proceeds from Non-Recourse U.S. SPV facility — — — — — — Payments on Non-Recourse U.S. SPV facility — — — — — — Proceeds from Non-Recourse Canada SPV facility — — 3,750 — — 3,750 Payments on Non-Recourse Canada SPV facility — — (24,752 ) — — (24,752 ) Proceeds from revolving credit facilities 30,000 38,002 — — — 68,002 Payments on revolving credit facilities (50,000 ) (38,002 ) — — — (88,002 ) Payments on subordinated stockholder debt — (2,245 ) — — — (2,245 ) Proceeds from exercise of stock options 69 — — (42 ) — 27 Debt issuance costs paid — — (169 ) (29 ) — (198 ) Repurchase of common stock — — — (1,762 ) — (1,762 ) Net cash used in provided by financing activities (1) (19,931 ) (2,245 ) (21,171 ) (1,833 ) — (45,180 ) Effect of exchange rate changes on cash and restricted cash — 2,444 561 — (1,544 ) 1,461 Net increase (decrease) in cash and restricted cash 32,155 (7,982 ) 1,979 — — 26,152 Cash and restricted cash at beginning of period 52,397 34,620 12,840 — — 99,857 Cash at end of period $ 84,552 $ 26,638 $ 14,819 $ — $ — $ 126,009 (1) Financing activities include continuing operations only and were not impacted by discontinued operations Six Months Ended June 30, 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 $ 87,848 $ — $ 38,259 $ 53,104 $ 67,767 $ 12,305 $ 259,283 $ (12,550 ) $ 246,733 Net cash provided by (used in) discontinued operating activities — — — 14,225 — (8,767 ) 5,458 — 5,458 Net cash provided by (used in) operating activities 87,848 — 38,259 67,329 67,767 3,538 264,741 (12,550 ) 252,191 Cash flows from investing activities: Purchase of property, equipment and software — — (1,983 ) (974 ) — — (2,957 ) — (2,957 ) Originations of loans, net — — (84,640 ) (48,795 ) (61,201 ) — (194,636 ) — (194,636 ) Investment in Cognical Holdings (958 ) — — — — — (958 ) — (958 ) Net cash (used in) provided by continuing investing activities (958 ) — (86,623 ) (49,769 ) (61,201 ) — (198,551 ) — (198,551 ) Net cash provided by (used in) discontinued investing activities — — — (14,349 ) — — (14,349 ) — (14,349 ) Net cash provided by (used in) investing activities (958 ) — (86,623 ) (64,118 ) (61,201 ) — (212,900 ) — (212,900 ) Cash flows from financing activities: Proceeds from Non-Recourse U.S. SPV facility — — — — 13,000 — 13,000 — 13,000 Payments on Non-Recourse U.S. SPV facility — — — — (19,163 ) — (19,163 ) — (19,163 ) Proceeds from revolving credit facilities 10,000 — — 8,798 — — 18,798 — 18,798 Payments on revolving credit facilities (10,000 ) — — (8,798 ) — — (18,798 ) — (18,798 ) Net proceeds from issuance of common stock — — — — — — — 12,431 12,431 Proceeds from exercise of stock options — — — — — — — 39 39 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 (90 ) — — (78 ) — — (168 ) — (168 ) Net cash (used in) provided by financing activities (1) (86,890 ) — — (78 ) (6,163 ) — (93,131 ) 12,470 (80,661 ) Effect of exchange rate changes on cash — — — (651 ) — (3,538 ) (4,189 ) — (4,189 ) Net (decrease) increase in cash and restricted cash — — (48,364 ) 2,482 403 — (45,479 ) (80 ) (45,559 ) 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 — — 70,692 50,966 7,274 — 128,932 — 128,932 Less: Cash and restricted cash at end of period of Discontinued Operations — — — 12,460 — — 12,460 — 12,460 Cash and restricted cash at end of period of Continuing Operations $ — $ — $ 70,692 $ 38,506 $ 7,274 $ — $ 116,472 $ — $ 116,472 |
SHARE REPURCHASE PROGRAM (Table
SHARE REPURCHASE PROGRAM (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of Share Repurchase Program | The table below summarizes share repurchase activity during the three and six months ended June 30, 2019 : Six Months Ended June 30, (in thousands, except per share amounts and number of share amounts) 2019 Total number of shares repurchased 244,200 Average price paid per share $ 10.26 Total value of shares repurchased $ 2,507 Total authorized repurchase amount $ 50,000 Total value of shares repurchased 2,507 Total remaining authorized repurchase amount $ 47,493 The Company repurchased 989,500 shares from July 1, 2019 through August 2, 2019: July 1 - August 2 (in thousands, except per share amounts and number of share amounts) 2019 Total number of shares repurchased 989,500 Average price paid per share $ 10.85 Total value of shares repurchased $ 10,731 |
SUBSEQUENT EVENTS (Tables)
SUBSEQUENT EVENTS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Schedule of Share Repurchase Program | The table below summarizes share repurchase activity during the three and six months ended June 30, 2019 : Six Months Ended June 30, (in thousands, except per share amounts and number of share amounts) 2019 Total number of shares repurchased 244,200 Average price paid per share $ 10.26 Total value of shares repurchased $ 2,507 Total authorized repurchase amount $ 50,000 Total value of shares repurchased 2,507 Total remaining authorized repurchase amount $ 47,493 The Company repurchased 989,500 shares from July 1, 2019 through August 2, 2019: July 1 - August 2 (in thousands, except per share amounts and number of share amounts) 2019 Total number of shares repurchased 989,500 Average price paid per share $ 10.85 Total value of shares repurchased $ 10,731 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Gross combined loans receivable, 90 days past-due | $ 87,649 | $ 87,649 | $ 66,476 | |||
Net cash provided by operating activities | (312,319) | $ (246,733) | ||||
Net cash used in investing activities | 227,731 | 198,551 | ||||
Right of use asset - operating leases | 140,982 | 140,982 | ||||
Lease liability - operating leases | 148,843 | 148,843 | ||||
Accounting Standards Update 2016-02 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Right of use asset - operating leases | 141,000 | 141,000 | ||||
Lease liability - operating leases | 148,800 | 148,800 | ||||
Operating lease asset, prepaid rent | 2,700 | 2,700 | ||||
Operating lease liability, deferred | $ 10,900 | $ 10,900 | ||||
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 | (48,200) | |||||
Net cash used in investing activities | $ 48,200 | |||||
Credit Concentration Risk | Allowance for Losses on Finance Receivables | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Concentration risk, percentage | 16.70% | 12.80% | 16.70% | 12.80% | ||
Consumer Portfolio Segment | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Gross combined loans receivable, 90 days past-due | $ 87,649 | $ 87,649 | 66,476 | |||
Consumer Portfolio Segment | Open-End | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Gross combined loans receivable, 90 days past-due | 35,396 | 35,396 | $ 0 | |||
Interest earned on past-due loan balances | $ 12,000 | $ 21,000 | ||||
Consumer Portfolio Segment | Open-End | Credit Concentration Risk | Allowance for Losses on Finance Receivables | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Concentration risk, percentage | 18.30% | 10.70% | 18.30% | 10.70% | ||
Cognical Holdings, Inc. (Zibby) | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Payments to acquire equity method investments | $ 2,800 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS - Schedule of Impact of Correction (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net cash provided by continuing operating activities | $ 312,319 | $ 246,733 |
Net cash used in continuing investing activities | $ (227,731) | (198,551) |
Previously Reported | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net cash provided by continuing operating activities | 52,097 | |
Net cash used in continuing investing activities | $ (3,915) |
VARIABLE INTEREST ENTITIES - Ca
VARIABLE INTEREST ENTITIES - Carrying Amounts of Consolidated VIE Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Total Assets | $ 1,085,355 | $ 919,617 |
Liabilities | ||
Total Liabilities | 1,027,977 | 938,718 |
Variable Interest Entity | ||
ASSETS | ||
Restricted cash | 14,819 | 12,840 |
Gross loans receivable less allowance for loan losses | 190,121 | 136,187 |
Total Assets | 204,940 | 149,027 |
Liabilities | ||
Accounts payable and accrued liabilities | 15,020 | 4,980 |
Deferred revenue | 45 | 40 |
Accrued interest | 713 | 831 |
Long-term debt | 90,977 | 107,479 |
Total Liabilities | $ 106,755 | $ 113,330 |
LOANS RECEIVABLE AND REVENUE -
LOANS RECEIVABLE AND REVENUE - Revenue by Product (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue from External Customer [Line Items] | ||||
Revenue | $ 264,300 | $ 237,169 | $ 542,239 | $ 488,012 |
Consumer Portfolio Segment | Unsecured Installment | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 122,112 | 114,936 | 257,890 | 240,315 |
Consumer Portfolio Segment | Secured Installment | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 26,076 | 25,777 | 53,553 | 52,633 |
Consumer Portfolio Segment | Open-End | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 54,972 | 27,222 | 107,841 | 54,445 |
Consumer Portfolio Segment | Single-Pay | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 45,528 | 58,325 | 92,289 | 118,682 |
Ancillary | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | $ 15,612 | $ 10,909 | $ 30,666 | $ 21,937 |
LOANS RECEIVABLE AND REVENUE _2
LOANS RECEIVABLE AND REVENUE - Loans Receivable by Product and Delinquency (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Current loans receivable | $ 521,944 | $ 505,055 | ||||
Delinquent loans receivable | 87,649 | 66,476 | ||||
Total loans receivable | 609,593 | 571,531 | ||||
Less: allowance for losses | (101,877) | $ (94,322) | (73,997) | $ (53,998) | $ (55,637) | $ (64,079) |
Loans receivable, net | 507,716 | 497,534 | ||||
Consumer Portfolio Segment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Delinquent loans receivable | 87,649 | 66,476 | ||||
Consumer Portfolio Segment | Single-Pay | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Current loans receivable | 76,126 | 80,823 | ||||
Delinquent loans receivable | 0 | 0 | ||||
Total loans receivable | 76,126 | 80,823 | ||||
Less: allowance for losses | (4,941) | (3,897) | (4,189) | (3,604) | (3,514) | (5,204) |
Loans receivable, net | 71,185 | 76,634 | ||||
Consumer Portfolio Segment | Unsecured Installment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Current loans receivable | 126,685 | 141,316 | ||||
Delinquent loans receivable | 38,037 | 49,087 | ||||
Total loans receivable | 164,722 | 190,403 | ||||
Less: allowance for losses | (35,223) | (33,666) | (37,716) | (30,291) | (33,638) | (38,977) |
Loans receivable, net | 129,499 | 152,687 | ||||
Consumer Portfolio Segment | Secured Installment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Current loans receivable | 71,218 | 75,583 | ||||
Delinquent loans receivable | 14,216 | 17,389 | ||||
Total loans receivable | 85,434 | 92,972 | ||||
Less: allowance for losses | (9,996) | (9,796) | (12,191) | (10,386) | (11,639) | (13,472) |
Loans receivable, net | 75,438 | 80,781 | ||||
Consumer Portfolio Segment | Open-End | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Current loans receivable | 247,915 | 207,333 | ||||
Delinquent loans receivable | 35,396 | 0 | ||||
Total loans receivable | 283,311 | 207,333 | ||||
Less: allowance for losses | (51,717) | $ (46,963) | (19,901) | $ (9,717) | $ (6,846) | $ (6,426) |
Loans receivable, net | $ 231,594 | $ 187,432 |
LOANS RECEIVABLE AND REVENUE _3
LOANS RECEIVABLE AND REVENUE - Delinquent Loans - Aging Analysis (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | $ 87,649 | $ 66,476 |
Consumer Portfolio Segment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 87,649 | 66,476 |
Consumer Portfolio Segment | 0-30 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 37,088 | 25,720 |
Consumer Portfolio Segment | 31-60 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 23,989 | 19,430 |
Consumer Portfolio Segment | 61-90 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 26,572 | 21,326 |
Consumer Portfolio Segment | Unsecured Installment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 38,037 | 49,087 |
Consumer Portfolio Segment | Unsecured Installment | 0-30 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 14,995 | 17,850 |
Consumer Portfolio Segment | Unsecured Installment | 31-60 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 11,176 | 14,705 |
Consumer Portfolio Segment | Unsecured Installment | 61-90 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 11,866 | 16,532 |
Consumer Portfolio Segment | Secured Installment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 14,216 | 17,389 |
Consumer Portfolio Segment | Secured Installment | 0-30 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 7,096 | 7,870 |
Consumer Portfolio Segment | Secured Installment | 31-60 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 3,358 | 4,725 |
Consumer Portfolio Segment | Secured Installment | 61-90 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 3,762 | 4,794 |
Consumer Portfolio Segment | Open-End | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 35,396 | $ 0 |
Consumer Portfolio Segment | Open-End | 0-30 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 14,997 | |
Consumer Portfolio Segment | Open-End | 31-60 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 9,455 | |
Consumer Portfolio Segment | Open-End | 61-90 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | $ 10,944 |
LOANS RECEIVABLE AND REVENUE _4
LOANS RECEIVABLE AND REVENUE - Loans Receivable by Product, Credit Services Organization (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Current loans receivable guaranteed by the Company | $ 56,898 | $ 68,247 | ||||
Delinquent loans receivable guaranteed by the Company | 10,441 | 12,154 | ||||
Total loans receivable guaranteed by the Company | 67,339 | 80,401 | ||||
Less: Liability for losses on CSO lender-owned consumer loans | (9,504) | $ (8,661) | (12,007) | $ (11,619) | $ (10,412) | $ (17,795) |
Loans receivable guaranteed by the Company, net | 57,835 | 68,394 | ||||
Consumer Portfolio Segment | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Delinquent loans receivable guaranteed by the Company | 10,441 | 12,154 | ||||
Consumer Portfolio Segment | Unsecured Installment | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Current loans receivable guaranteed by the Company | 54,968 | 65,743 | ||||
Delinquent loans receivable guaranteed by the Company | 10,087 | 11,708 | ||||
Total loans receivable guaranteed by the Company | 65,055 | 77,451 | ||||
Less: Liability for losses on CSO lender-owned consumer loans | (9,433) | (8,583) | (11,582) | (11,193) | (9,886) | (17,073) |
Loans receivable guaranteed by the Company, net | 55,622 | 65,869 | ||||
Consumer Portfolio Segment | Secured Installment | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Current loans receivable guaranteed by the Company | 1,930 | 2,504 | ||||
Delinquent loans receivable guaranteed by the Company | 354 | 446 | ||||
Total loans receivable guaranteed by the Company | 2,284 | 2,950 | ||||
Less: Liability for losses on CSO lender-owned consumer loans | (71) | $ (78) | (425) | $ (426) | $ (526) | $ (722) |
Loans receivable guaranteed by the Company, net | $ 2,213 | $ 2,525 |
LOANS RECEIVABLE AND REVENUE _5
LOANS RECEIVABLE AND REVENUE - Delinquent Loans, Credit Services Organization - Aging Analysis (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | $ 10,441 | $ 12,154 |
Consumer Portfolio Segment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 10,441 | 12,154 |
Consumer Portfolio Segment | 0-30 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 8,810 | 10,053 |
Consumer Portfolio Segment | 31-60 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 1,089 | 1,303 |
Consumer Portfolio Segment | 61-90 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 542 | 798 |
Consumer Portfolio Segment | Unsecured Installment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 10,087 | 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 | 8,511 | 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 | 1,052 | 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 | 524 | 769 |
Consumer Portfolio Segment | Secured Installment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 354 | 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 | 299 | 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 | 37 | 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 | $ 18 | $ 29 |
LOANS RECEIVABLE AND REVENUE _6
LOANS RECEIVABLE AND REVENUE - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance, beginning of period | $ 94,322 | $ 55,637 | $ 73,997 | $ 64,079 |
Charge-offs | (115,420) | (108,336) | (213,838) | (220,400) |
Recoveries | 38,719 | 47,568 | 82,129 | 97,894 |
Net charge-offs | (76,701) | (60,768) | (131,709) | (122,506) |
Provision for losses | 83,655 | 59,256 | 158,690 | 112,729 |
Effect of foreign currency translation | 601 | (127) | 899 | (304) |
Balance, end of period | $ 101,877 | $ 53,998 | $ 101,877 | $ 53,998 |
Allowance for Losses on Finance Receivables | Credit Concentration Risk | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Concentration risk, percentage | 16.70% | 12.80% | 16.70% | 12.80% |
Consumer Portfolio Segment | Single-Pay | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance, beginning of period | $ 3,897 | $ 3,514 | $ 4,189 | $ 5,204 |
Charge-offs | (35,759) | (41,242) | (72,280) | (85,578) |
Recoveries | 24,301 | 28,266 | 52,212 | 61,084 |
Net charge-offs | (11,458) | (12,976) | (20,068) | (24,494) |
Provision for losses | 12,446 | 13,101 | 20,714 | 22,993 |
Effect of foreign currency translation | 56 | (35) | 106 | (99) |
Balance, end of period | $ 4,941 | $ 3,604 | $ 4,941 | $ 3,604 |
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 | 6.50% | 4.30% | 6.50% | 4.30% |
Consumer Portfolio Segment | Unsecured Installment | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance, beginning of period | $ 33,666 | $ 33,638 | $ 37,716 | $ 38,977 |
Charge-offs | (37,336) | (31,612) | (81,573) | (66,831) |
Recoveries | 5,366 | 5,085 | 11,684 | 10,303 |
Net charge-offs | (31,970) | (26,527) | (69,889) | (56,528) |
Provision for losses | 33,514 | 23,219 | 67,359 | 47,958 |
Effect of foreign currency translation | 13 | (39) | 37 | (116) |
Balance, end of period | $ 35,223 | $ 30,291 | $ 35,223 | $ 30,291 |
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 | 21.40% | 18.90% | 21.40% | 18.90% |
Consumer Portfolio Segment | Secured Installment | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance, beginning of period | $ 9,796 | $ 11,639 | $ 12,191 | $ 13,472 |
Charge-offs | (10,295) | (11,082) | (22,966) | (22,567) |
Recoveries | 2,693 | 2,296 | 5,816 | 5,162 |
Net charge-offs | (7,602) | (8,786) | (17,150) | (17,405) |
Provision for losses | 7,802 | 7,533 | 14,955 | 14,319 |
Effect of foreign currency translation | 0 | 0 | 0 | 0 |
Balance, end of period | $ 9,996 | $ 10,386 | $ 9,996 | $ 10,386 |
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 | 11.70% | 12.30% | 11.70% | 12.30% |
Consumer Portfolio Segment | Open-End | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance, beginning of period | $ 46,963 | $ 6,846 | $ 19,901 | $ 6,426 |
Charge-offs | (30,688) | (23,807) | (34,326) | (44,156) |
Recoveries | 5,537 | 11,883 | 10,696 | 21,260 |
Net charge-offs | (25,151) | (11,924) | (23,630) | (22,896) |
Provision for losses | 29,373 | 14,848 | 54,690 | 26,276 |
Effect of foreign currency translation | 532 | (53) | 756 | (89) |
Balance, end of period | $ 51,717 | $ 9,717 | $ 51,717 | $ 9,717 |
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 | 18.30% | 10.70% | 18.30% | 10.70% |
Consumer Portfolio Segment | Other | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance, beginning of period | $ 0 | $ 0 | $ 0 | $ 0 |
Charge-offs | (1,342) | (593) | (2,693) | (1,268) |
Recoveries | 822 | 38 | 1,721 | 85 |
Net charge-offs | (520) | (555) | (972) | (1,183) |
Provision for losses | 520 | 555 | 972 | 1,183 |
Effect of foreign currency translation | 0 | 0 | 0 | 0 |
Balance, end of period | $ 0 | $ 0 | $ 0 | $ 0 |
LOANS RECEIVABLE AND REVENUE _7
LOANS RECEIVABLE AND REVENUE - CSO Guarantee Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Guarantor Obligations [Roll Forward] | ||||
Balance, beginning of period | $ 8,661 | $ 10,412 | $ 12,007 | $ 17,795 |
Charge-offs | (35,247) | (34,010) | (77,305) | (76,948) |
Recoveries | 7,735 | 8,126 | 19,097 | 20,271 |
Net charge-offs | (27,512) | (25,884) | (58,208) | (56,677) |
Provision for losses | 28,355 | 27,091 | 55,705 | 50,501 |
Balance, end of period | 9,504 | 11,619 | 9,504 | 11,619 |
Consumer Portfolio Segment | Unsecured Installment | ||||
Guarantor Obligations [Roll Forward] | ||||
Balance, beginning of period | 8,583 | 9,886 | 11,582 | 17,073 |
Charge-offs | (34,564) | (33,017) | (75,545) | (74,736) |
Recoveries | 7,078 | 7,350 | 17,638 | 18,326 |
Net charge-offs | (27,486) | (25,667) | (57,907) | (56,410) |
Provision for losses | 28,336 | 26,974 | 55,758 | 50,530 |
Balance, end of period | 9,433 | 11,193 | 9,433 | 11,193 |
Consumer Portfolio Segment | Secured Installment | ||||
Guarantor Obligations [Roll Forward] | ||||
Balance, beginning of period | 78 | 526 | 425 | 722 |
Charge-offs | (683) | (993) | (1,760) | (2,212) |
Recoveries | 657 | 776 | 1,459 | 1,945 |
Net charge-offs | (26) | (217) | (301) | (267) |
Provision for losses | 19 | 117 | (53) | (29) |
Balance, end of period | $ 71 | $ 426 | $ 71 | $ 426 |
LOANS RECEIVABLE AND REVENUE _8
LOANS RECEIVABLE AND REVENUE - Allowance For Doubtful Accounts - CSO Guarantee Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Financing Receivable, Allowance for Credit Losses And Guarantor Obligations [Roll Forward] | ||||
Balance, beginning of period | $ 102,983 | $ 66,049 | $ 86,004 | $ 81,874 |
Charge-offs | (150,667) | (142,346) | (291,143) | (297,348) |
Recoveries | 46,454 | 55,694 | 101,226 | 118,165 |
Net charge-offs | (104,213) | (86,652) | (189,917) | (179,183) |
Provision for losses | 112,010 | 86,347 | 214,395 | 163,230 |
Effect of foreign currency translation | 601 | (127) | 899 | (304) |
Balance, end of period | 111,381 | 65,617 | 111,381 | 65,617 |
Consumer Portfolio Segment | Single-Pay | ||||
Financing Receivable, Allowance for Credit Losses And Guarantor Obligations [Roll Forward] | ||||
Balance, beginning of period | 3,897 | 3,514 | 4,189 | 5,204 |
Charge-offs | (35,759) | (41,242) | (72,280) | (85,578) |
Recoveries | 24,301 | 28,266 | 52,212 | 61,084 |
Net charge-offs | (11,458) | (12,976) | (20,068) | (24,494) |
Provision for losses | 12,446 | 13,101 | 20,714 | 22,993 |
Effect of foreign currency translation | 56 | (35) | 106 | (99) |
Balance, end of period | 4,941 | 3,604 | 4,941 | 3,604 |
Consumer Portfolio Segment | Unsecured Installment | ||||
Financing Receivable, Allowance for Credit Losses And Guarantor Obligations [Roll Forward] | ||||
Balance, beginning of period | 42,249 | 43,524 | 49,298 | 56,050 |
Charge-offs | (71,900) | (64,629) | (157,118) | (141,567) |
Recoveries | 12,444 | 12,435 | 29,322 | 28,629 |
Net charge-offs | (59,456) | (52,194) | (127,796) | (112,938) |
Provision for losses | 61,850 | 50,193 | 123,117 | 98,488 |
Effect of foreign currency translation | 13 | (39) | 37 | (116) |
Balance, end of period | 44,656 | 41,484 | 44,656 | 41,484 |
Consumer Portfolio Segment | Secured Installment | ||||
Financing Receivable, Allowance for Credit Losses And Guarantor Obligations [Roll Forward] | ||||
Balance, beginning of period | 9,874 | 12,165 | 12,616 | 14,194 |
Charge-offs | (10,978) | (12,075) | (24,726) | (24,779) |
Recoveries | 3,350 | 3,072 | 7,275 | 7,107 |
Net charge-offs | (7,628) | (9,003) | (17,451) | (17,672) |
Provision for losses | 7,821 | 7,650 | 14,902 | 14,290 |
Effect of foreign currency translation | 0 | 0 | 0 | 0 |
Balance, end of period | 10,067 | 10,812 | 10,067 | 10,812 |
Consumer Portfolio Segment | Open-End | ||||
Financing Receivable, Allowance for Credit Losses And Guarantor Obligations [Roll Forward] | ||||
Balance, beginning of period | 46,963 | 6,846 | 19,901 | 6,426 |
Charge-offs | (30,688) | (23,807) | (34,326) | (44,156) |
Recoveries | 5,537 | 11,883 | 10,696 | 21,260 |
Net charge-offs | (25,151) | (11,924) | (23,630) | (22,896) |
Provision for losses | 29,373 | 14,848 | 54,690 | 26,276 |
Effect of foreign currency translation | 532 | (53) | 756 | (89) |
Balance, end of period | 51,717 | 9,717 | 51,717 | 9,717 |
Consumer Portfolio Segment | Other | ||||
Financing Receivable, Allowance for Credit Losses And Guarantor Obligations [Roll Forward] | ||||
Balance, beginning of period | 0 | 0 | 0 | 0 |
Charge-offs | (1,342) | (593) | (2,693) | (1,268) |
Recoveries | 822 | 38 | 1,721 | 85 |
Net charge-offs | (520) | (555) | (972) | (1,183) |
Provision for losses | 520 | 555 | 972 | 1,183 |
Effect of foreign currency translation | 0 | 0 | 0 | 0 |
Balance, end of period | $ 0 | $ 0 | $ 0 | $ 0 |
CREDIT SERVICES ORGANIZATION (D
CREDIT SERVICES ORGANIZATION (Details) - USD ($) $ in Thousands | 6 Months Ended | |||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Credit services organization, fees receivable | $ 12,000 | $ 14,300 | ||||
Guarantor obligations, maximum exposure, undiscounted | 56,000 | 66,900 | ||||
Liability for losses on CSO lender-owned consumer loans | 9,504 | $ 8,661 | 12,007 | $ 11,619 | $ 10,412 | $ 17,795 |
Amounts placed in collateral accounts | $ 5,800 | $ 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 | Jun. 30, 2019 | Dec. 31, 2018 | Aug. 31, 2018 | Aug. 02, 2018 |
Debt Instrument [Line Items] | ||||
Long-term debt | $ 768,512 | $ 804,140 | ||
Senior Notes | 8.25% Senior Secured Notes (due 2025) | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 677,535 | $ 676,661 | ||
Stated interest rate (as percent) | 8.25% | 8.25% | 8.25% | |
Line of Credit | Revolving Credit Facility | Non-Recourse Canada SPV Facility | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 90,977 | $ 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 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 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 | $ 0 | $ 0 | $ 11,683,000 | ||||||
Long-term debt | $ 768,512,000 | $ 768,512,000 | $ 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 instrument, face amount | $ 690,000,000 | |||||||||
Debt issuance costs capitalized | $ 12,800,000 | |||||||||
Debt instrument, term | 5 years | |||||||||
Loss on extinguishment of debt | $ 69,200,000 | |||||||||
Long-term debt | $ 677,535,000 | $ 677,535,000 | $ 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 instrument, face amount | $ 135,000,000 | $ 470,000,000 | ||||||||
Debt issuance costs capitalized | $ 18,300,000 | |||||||||
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 ($) | Apr. 30, 2019 | Aug. 31, 2018CAD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Line of Credit Facility [Line Items] | |||||
Long-term debt | $ 768,512 | $ 804,140 | |||
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% | ||||
Debt instrument, extended term | 1 year | ||||
Long-term debt | 90,977 | $ 107,479 | |||
Deferred financing costs | $ 3,600 |
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 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Aug. 31, 2018 |
Debt Instrument [Line Items] | |||||||||||
Loss on extinguishment of debt | $ 0 | $ 0 | $ 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 ($) | Nov. 30, 2016 | Jun. 30, 2019lender | Dec. 31, 2018 | Aug. 31, 2018 | Feb. 28, 2018USD ($) | 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% | |||||||
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 - CAD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 29, 2019 | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 9,700,000 | $ 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) | Jun. 30, 2019 |
Subordinated Debt | Subordinated Shareholder Debt | |
Debt Instrument [Line Items] | |
Stated interest rate (as percent) | 10.00% |
SHARE-BASED COMPENSATION - Addi
SHARE-BASED COMPENSATION - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 2.6 | $ 2.2 | $ 4.8 | $ 4 | |
Unrecognized compensation costs | $ 18.5 | $ 18.5 | |||
Compensation cost not yet recognized, period for recognition | 2 years | ||||
2017 Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | 5,000,000 | 5,000,000 | |||
Time-Based | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Unrecognized compensation costs | $ 15.4 | $ 15.4 | |||
Market-Based | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Performance period of stockholder return | 3 years | ||||
Unrecognized compensation costs | $ 3.1 | $ 3.1 |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summary of RSUs and PSUs (Details) | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Time-Based | |
Number of Shares | |
Outstanding, beginning of period (in shares) | 1,060,350 |
Granted (in shares) | 579,540 |
Vested (in shares) | (83,481) |
Forfeited (in shares) | (68,778) |
Outstanding, end of period (in shares) | 1,487,631 |
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 | 10.07 |
Weighted average grant date fair value, vested (USD per share) | $ / shares | 15.59 |
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 | $ 12.06 |
Market-Based | |
Number of Shares | |
Outstanding, beginning of period (in shares) | 0 |
Granted (in shares) | 394,755 |
Vested (in shares) | 0 |
Forfeited (in shares) | 0 |
Outstanding, end of period (in shares) | 394,755 |
Weighted Average Grant Date Fair Value per Share | |
Weighted average grant date fair value, granted (USD per share) | $ / shares | $ 10.07 |
Weighted average grant date fair value, end of period (USD per share) | $ / shares | $ 12.06 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Contingency [Line Items] | |||||
Effective income tax rate (as percent) | 27.40% | 27.60% | |||
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) | $ 0.5 | $ 0.6 | |||
Undistributed foreign earnings | $ 159.3 | $ 159.3 | |||
Canada Revenue Agency | Pro forma | |||||
Income Tax Contingency [Line Items] | |||||
Expected tax if earnings were distributed to the U.S. | $ 8 |
FINANCIAL INSTRUMENTS - Summary
FINANCIAL INSTRUMENTS - Summary of Assets and Liabilities Not Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Aug. 31, 2018 |
Financial assets: | |||
Restricted cash | $ 33,712 | $ 25,439 | |
Carrying Value | |||
Financial assets: | |||
Cash | 92,297 | 61,175 | |
Restricted cash | 33,712 | 25,439 | |
Loans receivable, net | 507,716 | 497,534 | |
Investment in Cognical | 7,178 | 6,558 | |
Financial liabilities: | |||
Liability for losses on CSO lender-owned consumer loans | 9,504 | 12,007 | |
Carrying Value | 8.25% Senior Secured Notes (due 2025) | |||
Financial liabilities: | |||
Debt | 677,535 | 676,661 | |
Carrying Value | Non-Recourse Canada SPV Facility | |||
Financial liabilities: | |||
Debt | 90,977 | 107,479 | |
Carrying Value | Senior Revolver | |||
Financial liabilities: | |||
Debt | 20,000 | ||
Estimated Fair Value | |||
Financial assets: | |||
Cash | 92,297 | 61,175 | |
Restricted cash | 33,712 | 25,439 | |
Loans receivable, net | 507,716 | 497,534 | |
Investment in Cognical | 7,178 | 6,558 | |
Financial liabilities: | |||
Liability for losses on CSO lender-owned consumer loans | 9,504 | 12,007 | |
Estimated Fair Value | 8.25% Senior Secured Notes (due 2025) | |||
Financial liabilities: | |||
Debt | 574,211 | 531,179 | |
Estimated Fair Value | Non-Recourse Canada SPV Facility | |||
Financial liabilities: | |||
Debt | 94,565 | 111,335 | |
Estimated Fair Value | Senior Revolver | |||
Financial liabilities: | |||
Debt | 20,000 | ||
Estimated Fair Value | Level 1 | |||
Financial assets: | |||
Cash | 92,297 | 61,175 | |
Restricted cash | 33,712 | 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 | 507,716 | 497,534 | |
Investment in Cognical | 7,178 | 6,558 | |
Financial liabilities: | |||
Liability for losses on CSO lender-owned consumer loans | 9,504 | 12,007 | |
Estimated Fair Value | Level 3 | 8.25% Senior Secured Notes (due 2025) | |||
Financial liabilities: | |||
Debt | 574,211 | 531,179 | |
Estimated Fair Value | Level 3 | Non-Recourse Canada SPV Facility | |||
Financial liabilities: | |||
Debt | $ 94,565 | 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% |
FINANCIAL INSTRUMENTS - Narrati
FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2018 | Aug. 31, 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% |
Cognical Holdings, Inc. (Zibby) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Impairment recognized | $ 3.7 | ||
Ownership percentage | 30.00% |
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 | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance, beginning period | $ 36,744 | $ (19,101) | $ 42,550 | $ 7,136 | $ (19,101) | $ 7,136 |
Net income from continuing operations | 17,667 | 28,673 | 18,718 | 24,913 | 46,340 | 43,631 |
Net (loss) income from discontinued operations, net of tax | (834) | 8,375 | (2,743) | (1,621) | 7,541 | (4,364) |
Foreign currency translation adjustment | 3,635 | 16,695 | (6,752) | (2,910) | $ 20,330 | (9,663) |
Foreign currency translation adjustment | (6,754) | |||||
Cash flow hedge expiration | (439) | 54 | (385) | |||
Share based compensation expense | 2,644 | 2,172 | 1,478 | 1,842 | ||
Initial Public Offering, Net Proceeds (underwriter shares) | 13,136 | |||||
Proceeds from exercise of stock options | 29 | 40 | 39 | |||
Purchase of shares under the stock repurchase program (in shares) | (244,200) | |||||
Purchase of shares under the stock repurchase program | (2,507) | $ (2,507) | ||||
Common stock issued for RSU's vesting, net of shares withheld and withholding paid for employee taxes | 0 | (110) | 0 | |||
Balance, ending period | $ 57,378 | $ 36,744 | $ 52,849 | $ 42,550 | $ 57,378 | $ 52,849 |
Common Stock | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance, beginning period (in shares) | 46,431,289 | 46,412,231 | 45,561,419 | 44,561,419 | 46,412,231 | 44,561,419 |
Balance, beginning period | $ 9 | $ 9 | $ 9 | $ 8 | $ 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) | 4,908 | 7,888 | 209,132 | |||
Purchase of shares under the stock repurchase program (in shares) | (244,200) | |||||
Common stock issued for RSU's vesting, net of shares withheld and withholding paid for employee taxes (in shares) | 63,285 | 11,170 | 49,994 | |||
Balance, ending period (in shares) | 46,255,282 | 46,431,289 | 45,820,545 | 45,561,419 | 46,255,282 | 45,820,545 |
Balance, ending period | $ 9 | $ 9 | $ 9 | $ 9 | $ 9 | $ 9 |
Paid-in capital | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance, beginning period | 62,117 | 60,015 | 61,056 | 46,079 | 60,015 | 46,079 |
Share based compensation expense | 2,644 | 2,172 | 1,478 | 1,842 | ||
Initial Public Offering, Net Proceeds (underwriter shares) | 13,135 | |||||
Proceeds from exercise of stock options | 29 | 40 | 39 | |||
Common stock issued for RSU's vesting, net of shares withheld and withholding paid for employee taxes | (110) | |||||
Balance, ending period | 64,790 | 62,117 | 62,573 | 61,056 | 64,790 | 62,573 |
Treasury Stock | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance, beginning period | 0 | 0 | 0 | |||
Purchase of shares under the stock repurchase program | (2,507) | |||||
Balance, ending period | (2,507) | 0 | (2,507) | |||
Retained Earnings (Deficit) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance, beginning period | 18,983 | (18,065) | 27,280 | 3,988 | (18,065) | 3,988 |
Net income from continuing operations | 17,667 | 28,673 | 18,718 | 24,913 | ||
Net (loss) income from discontinued operations, net of tax | (834) | 8,375 | (2,743) | (1,621) | ||
Balance, ending period | 35,816 | 18,983 | 43,255 | 27,280 | 35,816 | 43,255 |
AOCI | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance, beginning period | (44,365) | (61,060) | (45,795) | (42,939) | (61,060) | (42,939) |
Foreign currency translation adjustment | 3,635 | 16,695 | (2,910) | |||
Foreign currency translation adjustment | (6,754) | |||||
Cash flow hedge expiration | (439) | 54 | ||||
Balance, ending period | $ (40,730) | $ (44,365) | $ (52,988) | $ (45,795) | $ (40,730) | $ (52,988) |
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 | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||||
Net income from continuing operations | $ 17,667 | $ 28,673 | $ 18,718 | $ 24,913 | $ 46,340 | $ 43,631 |
Net (loss) income from discontinued operations, net of tax | (834) | $ 8,375 | (2,743) | $ (1,621) | 7,541 | (4,364) |
Net income | $ 16,833 | $ 15,975 | $ 53,881 | $ 39,267 | ||
Weight average common shares - basic (in shares) | 46,451 | 45,650 | 46,438 | 45,578 | ||
Dilutive effect of stock options and restricted stock units (in shares) | 656 | 2,346 | 897 | 2,179 | ||
Weighted average common shares - diluted (in shares) | 47,107 | 47,996 | 47,335 | 47,757 | ||
Basic income (loss) per share: | ||||||
Continuing operations (in dollars per share) | $ 0.38 | $ 0.41 | $ 1 | $ 0.96 | ||
Discontinued operations (in dollars per share) | (0.02) | (0.06) | 0.16 | (0.10) | ||
Basic earnings per share (in dollars per share) | 0.36 | 0.35 | 1.16 | 0.86 | ||
Diluted income (loss) per share: | ||||||
Continuing operations (in dollars per share) | 0.38 | 0.39 | 0.98 | 0.92 | ||
Discontinued operations (in dollars per share) | (0.02) | (0.06) | 0.16 | (0.10) | ||
Diluted earnings per share (in dollars per share) | $ 0.36 | $ 0.33 | $ 1.14 | $ 0.82 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,300,000 | 0 | 1,200,000 | 0 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash paid for: | ||
Interest | $ 34,678 | $ 44,250 |
Income taxes | 4,231 | 11,621 |
Non-cash investing activities: | ||
Property and equipment accrued in accounts payable | $ 105 | $ 595 |
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 | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Consolidated revenue | $ 264,300 | $ 237,169 | $ 542,239 | $ 488,012 | |
Consolidated gross margin | 81,181 | 77,348 | 186,678 | 183,194 | |
Consolidated operating profit | 25,120 | 23,896 | 63,839 | 60,276 | |
Consolidated expenditures for long-lived assets | 3,045 | 1,415 | 6,164 | 2,957 | |
Total gross loans receivable | 609,593 | 609,593 | $ 571,531 | ||
U.S. | |||||
Segment Reporting Information [Line Items] | |||||
Consolidated revenue | 210,046 | 190,126 | 436,165 | 394,719 | |
Consolidated gross margin | 65,067 | 64,048 | 154,870 | 155,392 | |
Consolidated operating profit | 17,029 | 15,362 | 48,224 | 42,194 | |
Consolidated expenditures for long-lived assets | 2,568 | 1,195 | 4,998 | 1,983 | |
Total gross loans receivable | 340,968 | 340,968 | 361,473 | ||
Canada | |||||
Segment Reporting Information [Line Items] | |||||
Consolidated revenue | 54,254 | 47,043 | 106,074 | 93,293 | |
Consolidated gross margin | 16,114 | 13,300 | 31,808 | 27,802 | |
Consolidated operating profit | 8,091 | 8,534 | 15,615 | 18,082 | |
Consolidated expenditures for long-lived assets | 477 | $ 220 | 1,166 | $ 974 | |
Total gross loans receivable | $ 268,625 | $ 268,625 | $ 210,058 |
SEGMENT REPORTING - Summary o_2
SEGMENT REPORTING - Summary of Long-lived Assets by Geographical Region (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net long-lived assets | $ 72,993 | $ 76,750 |
U.S. | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net long-lived assets | 44,209 | 47,918 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net long-lived assets | $ 28,784 | $ 28,832 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Millions | 3 Months Ended |
Jun. 30, 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 | $ 17 |
Operating lease payments | $ 17.4 |
Weighted average remaining lease term | 6 years 3 months 6 days |
Weighted average operating discount rate | 10.30% |
Third-Party | |
Operating lease cost | $ 15.3 |
Related-Party | |
Operating lease cost | $ 1.7 |
LEASES - Schedule of Future Min
LEASES - Schedule of Future Minimum Lease Payments (Details) $ in Thousands | Jun. 30, 2019USD ($) |
2019 | $ 17,357 |
2020 | 34,487 |
2021 | 34,196 |
2022 | 33,262 |
2023 | 28,896 |
Thereafter | 55,160 |
Total | 203,358 |
Less: Imputed interest | (54,515) |
Operating lease liabilities | 148,843 |
Third-Party | |
2019 | 15,517 |
2020 | 30,735 |
2021 | 30,344 |
2022 | 29,353 |
2023 | 25,280 |
Thereafter | 44,277 |
Total | 175,506 |
Less: Imputed interest | (45,852) |
Operating lease liabilities | 129,654 |
Related-Party | |
2019 | 1,840 |
2020 | 3,752 |
2021 | 3,852 |
2022 | 3,909 |
2023 | 3,616 |
Thereafter | 10,883 |
Total | 27,852 |
Less: Imputed interest | (8,663) |
Operating lease liabilities | $ 19,189 |
DISCONTINUED OPERATIONS - Narra
DISCONTINUED OPERATIONS - Narrative (Details) - U.K. Segment - Discontinued Operations, Disposed of by Means Other than Sale - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loss on disposition | $ 0 | $ 0 | $ 39,414 | $ 0 |
Income tax expense (benefit) related to disposition | $ 834 | $ 139 | $ (46,589) | $ 139 |
DISCONTINUED OPERATIONS - Sched
DISCONTINUED OPERATIONS - Schedules of Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Income Statement Disclosures | |||||||
Net income (loss) from discontinued operations | $ (834) | $ 8,375 | $ (2,743) | $ (1,621) | $ 7,541 | $ (4,364) | |
ASSETS | |||||||
Total assets classified as discontinued operations in the Condensed Consolidated Balance Sheets | 0 | 0 | $ 34,861 | ||||
LIABILITIES | |||||||
Total liabilities classified as discontinued operations in the Condensed Consolidated Balance Sheets | 0 | 0 | 8,882 | ||||
Cash Flow Disclosures | |||||||
Net cash (used in) provided by discontinued operating activities | (504) | 5,458 | |||||
Net cash used in discontinued investing activities | (14,213) | (14,349) | |||||
U.K. Segment | Discontinued Operations, Disposed of by Means Other than Sale | |||||||
Income Statement Disclosures | |||||||
Revenue | 0 | 11,814 | 6,957 | 22,729 | |||
Provision for losses | 0 | 5,639 | 1,703 | 9,787 | |||
Net revenue | 0 | 6,175 | 5,254 | 12,942 | |||
Office | 0 | 545 | 246 | 1,073 | |||
Other costs of providing services | 0 | 125 | 61 | 1,094 | |||
Advertising | 0 | 2,441 | 775 | 4,312 | |||
Cost of providing services | 0 | 3,111 | 1,082 | 6,479 | |||
Gross margin | 0 | 3,064 | 4,172 | 6,463 | |||
Corporate, district and other expenses | 0 | 5,675 | 3,810 | 10,700 | |||
Interest income | 0 | (7) | (4) | (12) | |||
Loss on disposition | 0 | 0 | 39,414 | 0 | |||
Total operating expense | 0 | 5,668 | 43,220 | 10,688 | |||
Pre-tax (loss) income from operations of discontinued operations | 0 | (2,604) | (39,048) | (4,225) | |||
Income tax expense (benefit) related to disposition | 834 | 139 | (46,589) | 139 | |||
Net income (loss) from discontinued operations | (834) | $ (2,743) | 7,541 | (4,364) | |||
ASSETS | |||||||
Cash | 0 | 0 | 9,859 | ||||
Restricted cash | 0 | 0 | 3,384 | ||||
Gross loans receivable | 0 | 0 | 25,256 | ||||
Less: allowance for loan losses | 0 | 0 | (5,387) | ||||
Loans receivable, net | 0 | 0 | 19,869 | ||||
Prepaid expenses and other | 0 | 0 | 1,482 | ||||
Other | 0 | 0 | 267 | ||||
Total assets classified as discontinued operations in the Condensed Consolidated Balance Sheets | 0 | 0 | 34,861 | ||||
LIABILITIES | |||||||
Accounts payable and accrued liabilities | 0 | 0 | 8,136 | ||||
Deferred revenue | 0 | 0 | 180 | ||||
Accrued interest | 0 | 0 | (5) | ||||
Deferred rent | 0 | 0 | 149 | ||||
Other long-term liabilities | 0 | 0 | 422 | ||||
Total liabilities classified as discontinued operations in the Condensed Consolidated Balance Sheets | $ 0 | 0 | $ 8,882 | ||||
Cash Flow Disclosures | |||||||
Net cash (used in) provided by discontinued operating activities | (504) | 5,458 | |||||
Net cash used in discontinued investing activities | (14,213) | (14,349) | |||||
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, 2018USD ($) | Mar. 31, 2018USD ($) | Nov. 30, 2017USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Aug. 31, 2018CAD ($) | Feb. 28, 2017USD ($) |
Debt Instrument [Line Items] | ||||||||||
Long-term debt | $ 768,512,000 | $ 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] | ||||||||||
Debt instrument, face amount | $ 135,000,000 | $ 470,000,000 | ||||||||
Stated interest rate (as percent) | 12.00% | 12.00% | ||||||||
Notice of redemption, amount | $ 77,500,000 | |||||||||
Redemption price, percentage (as percent) | 112.00% | |||||||||
Long-term debt | $ 527,500,000 | |||||||||
8.25% Senior Secured Notes | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 690,000,000 | |||||||||
Stated interest rate (as percent) | 8.25% | 8.25% | 8.25% | 8.25% | ||||||
Debt instrument, term | 5 years | |||||||||
Long-term debt | $ 677,535,000 | $ 676,661,000 | ||||||||
Non-Recourse Canada SPV Facility | Revolving Credit Facility | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate (as percent) | 6.75% | |||||||||
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 | ||||||||
Long-term debt | $ 90,977,000 | $ 107,479,000 | ||||||||
CFTC | 12% Senior Secured Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate (as percent) | 12.00% | |||||||||
Line of credit facility, maximum borrowing capacity | $ 470,000,000 | |||||||||
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 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Assets: | ||||||
Cash | $ 92,297 | $ 61,175 | ||||
Restricted cash | 33,712 | 25,439 | ||||
Loans receivable, net | 507,716 | 497,534 | ||||
Right of use asset - operating leases | 140,982 | |||||
Deferred income taxes | 2,637 | 1,534 | ||||
Income taxes receivable | 37,579 | 16,741 | ||||
Prepaid expenses and other | 30,241 | 43,588 | ||||
Property and equipment, net | 72,993 | 76,750 | ||||
Goodwill | 120,450 | 119,281 | ||||
Other intangibles, net | 30,657 | 29,784 | ||||
Intercompany receivable | 0 | 0 | ||||
Investment in subsidiaries | 0 | 0 | ||||
Other | 16,091 | 12,930 | ||||
Assets from discontinued operations | 0 | 34,861 | ||||
Total Assets | 1,085,355 | 919,617 | ||||
Liabilities and Stockholders' equity: | ||||||
Accounts payable and accrued liabilities | 59,274 | 49,146 | ||||
Deferred revenue | 8,712 | 9,483 | ||||
Lease liability - operating leases | 148,843 | |||||
Income taxes payable | 0 | 1,579 | ||||
Accrued interest | 19,690 | 20,904 | ||||
Payable to CURO Holdings Corp. | 0 | 0 | ||||
CSO liability for losses | 9,504 | $ 8,661 | 12,007 | $ 11,619 | $ 10,412 | $ 17,795 |
Deferred rent | 0 | 10,851 | ||||
Long-term debt | 768,512 | 804,140 | ||||
Subordinated stockholder debt | 0 | 2,196 | ||||
Intercompany payable | 0 | 0 | ||||
Other long-term liabilities | 8,594 | 5,800 | ||||
Deferred tax liabilities | 4,848 | 13,730 | ||||
Liabilities from discontinued operations | 0 | 8,882 | ||||
Total Liabilities | 1,027,977 | 938,718 | ||||
Stockholder’s equity | 57,378 | $ 36,744 | (19,101) | $ 52,849 | $ 42,550 | $ 7,136 |
Total Liabilities and Stockholders' Equity | 1,085,355 | 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 | (107,251) | (77,009) | ||||
Investment in subsidiaries | 1,515 | 101,665 | ||||
Other | 0 | 0 | ||||
Assets from discontinued operations | 32,455 | |||||
Total Assets | (105,736) | 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 | 0 | 0 | ||||
Subordinated stockholder debt | 0 | |||||
Intercompany payable | (107,251) | (44,554) | ||||
Other long-term liabilities | 0 | 0 | ||||
Deferred tax liabilities | 0 | 0 | ||||
Liabilities from discontinued operations | 0 | |||||
Total Liabilities | (107,251) | (44,554) | ||||
Stockholder’s equity | 1,515 | 101,665 | ||||
Total Liabilities and Stockholders' Equity | (105,736) | 57,111 | ||||
Subsidiary Guarantors | Reportable Legal Entities | ||||||
Assets: | ||||||
Cash | 68,354 | 42,403 | ||||
Restricted cash | 16,198 | 9,993 | ||||
Loans receivable, net | 269,298 | 304,542 | ||||
Right of use asset - operating leases | 79,000 | |||||
Deferred income taxes | (7,848) | 0 | ||||
Income taxes receivable | (470) | 7,190 | ||||
Prepaid expenses and other | 23,038 | 37,866 | ||||
Property and equipment, net | 44,209 | 47,918 | ||||
Goodwill | 91,131 | 91,131 | ||||
Other intangibles, net | 8,420 | 8,418 | ||||
Intercompany receivable | 107,251 | 77,009 | ||||
Investment in subsidiaries | 0 | 0 | ||||
Other | 15,401 | 12,253 | ||||
Assets from discontinued operations | 0 | |||||
Total Assets | 713,982 | 638,723 | ||||
Liabilities and Stockholders' equity: | ||||||
Accounts payable and accrued liabilities | 44,667 | 38,240 | ||||
Deferred revenue | 5,237 | 5,981 | ||||
Lease liability - operating leases | 86,685 | |||||
Income taxes payable | (18,731) | 0 | ||||
Accrued interest | 2 | 149 | ||||
Payable to CURO Holdings Corp. | 736,920 | 768,345 | ||||
CSO liability for losses | 9,504 | 12,007 | ||||
Deferred rent | 9,559 | |||||
Long-term debt | 0 | 20,000 | ||||
Subordinated stockholder debt | 0 | |||||
Intercompany payable | 0 | 0 | ||||
Other long-term liabilities | 7,999 | 4,967 | ||||
Deferred tax liabilities | (4,171) | 15,175 | ||||
Liabilities from discontinued operations | 0 | |||||
Total Liabilities | 868,112 | 874,423 | ||||
Stockholder’s equity | (154,130) | (235,700) | ||||
Total Liabilities and Stockholders' Equity | 713,982 | 638,723 | ||||
Subsidiary Non-Guarantors | Reportable Legal Entities | ||||||
Assets: | ||||||
Cash | 23,943 | 18,772 | ||||
Restricted cash | 2,695 | 2,606 | ||||
Loans receivable, net | 48,297 | 56,805 | ||||
Right of use asset - operating leases | 61,982 | |||||
Deferred income taxes | 0 | 1,534 | ||||
Income taxes receivable | 6,395 | 0 | ||||
Prepaid expenses and other | 7,203 | 5,722 | ||||
Property and equipment, net | 28,784 | 28,832 | ||||
Goodwill | 29,319 | 28,150 | ||||
Other intangibles, net | 22,237 | 21,366 | ||||
Intercompany receivable | 0 | 0 | ||||
Investment in subsidiaries | 0 | 0 | ||||
Other | 690 | 677 | ||||
Assets from discontinued operations | 2,406 | |||||
Total Assets | 231,545 | 166,870 | ||||
Liabilities and Stockholders' equity: | ||||||
Accounts payable and accrued liabilities | (1,166) | 5,734 | ||||
Deferred revenue | 3,430 | 3,462 | ||||
Lease liability - operating leases | 62,158 | |||||
Income taxes payable | 0 | 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 | 0 | 0 | ||||
Subordinated stockholder debt | 2,196 | |||||
Intercompany payable | 20,002 | 224 | ||||
Other long-term liabilities | 595 | 833 | ||||
Deferred tax liabilities | 4,848 | 0 | ||||
Liabilities from discontinued operations | 8,882 | |||||
Total Liabilities | 89,867 | 24,202 | ||||
Stockholder’s equity | 141,678 | 142,668 | ||||
Total Liabilities and Stockholders' Equity | 231,545 | 166,870 | ||||
Canada SPV | Reportable Legal Entities | ||||||
Assets: | ||||||
Cash | 0 | 0 | ||||
Restricted cash | 14,819 | 12,840 | ||||
Loans receivable, net | 190,121 | 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 | 204,940 | 149,027 | ||||
Liabilities and Stockholders' equity: | ||||||
Accounts payable and accrued liabilities | 15,020 | 4,980 | ||||
Deferred revenue | 45 | 40 | ||||
Lease liability - operating leases | 0 | |||||
Income taxes payable | 0 | 0 | ||||
Accrued interest | 713 | 831 | ||||
Payable to CURO Holdings Corp. | 0 | 0 | ||||
CSO liability for losses | 0 | 0 | ||||
Deferred rent | 0 | |||||
Long-term debt | 90,976 | 107,479 | ||||
Subordinated stockholder debt | 0 | |||||
Intercompany payable | 87,249 | 44,330 | ||||
Other long-term liabilities | 0 | 0 | ||||
Deferred tax liabilities | 0 | 0 | ||||
Liabilities from discontinued operations | 0 | |||||
Total Liabilities | 194,003 | 157,660 | ||||
Stockholder’s equity | 10,937 | (8,633) | ||||
Total Liabilities and Stockholders' Equity | 204,940 | 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 | 10,485 | 0 | ||||
Income taxes receivable | 31,654 | 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 | (1,515) | (101,665) | ||||
Other | 0 | 0 | ||||
Assets from discontinued operations | 0 | |||||
Total Assets | 40,624 | (92,114) | ||||
Liabilities and Stockholders' equity: | ||||||
Accounts payable and accrued liabilities | 753 | 192 | ||||
Deferred revenue | 0 | 0 | ||||
Lease liability - operating leases | 0 | |||||
Income taxes payable | 18,731 | 0 | ||||
Accrued interest | 18,975 | 19,924 | ||||
Payable to CURO Holdings Corp. | (736,920) | (768,345) | ||||
CSO liability for losses | 0 | 0 | ||||
Deferred rent | 0 | |||||
Long-term debt | 677,536 | 676,661 | ||||
Subordinated stockholder debt | 0 | |||||
Intercompany payable | 0 | 0 | ||||
Other long-term liabilities | 0 | 0 | ||||
Deferred tax liabilities | 4,171 | (1,445) | ||||
Liabilities from discontinued operations | 0 | |||||
Total Liabilities | (16,754) | (73,013) | ||||
Stockholder’s equity | 57,378 | (19,101) | ||||
Total Liabilities and Stockholders' Equity | $ 40,624 | $ (92,114) |
CONDENSED CONSOLIDATING FINAN_5
CONDENSED CONSOLIDATING FINANCIAL INFORMATION - Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Condensed Income Statements, Captions [Line Items] | ||||||
Revenue | $ 264,300 | $ 237,169 | $ 542,239 | $ 488,012 | ||
Provision for losses | 112,010 | 86,347 | 214,395 | 163,230 | ||
Net revenue | 152,290 | 150,822 | 327,844 | 324,782 | ||
Cost of providing services | ||||||
Salaries and benefits | 26,086 | 26,908 | 54,787 | 53,826 | ||
Occupancy | 13,932 | 13,320 | 28,169 | 26,747 | ||
Office | 5,457 | 5,532 | 10,570 | 11,985 | ||
Other store operating expenses | 12,854 | 12,601 | 27,074 | 26,032 | ||
Advertising | 12,780 | 15,113 | 20,566 | 22,998 | ||
Total cost of providing services | 71,109 | 73,474 | 141,166 | 141,588 | ||
Gross margin | 81,181 | 77,348 | 186,678 | 183,194 | ||
Operating (income) expense: | ||||||
Corporate, district and other expenses | 39,038 | 32,980 | 88,126 | 68,409 | ||
Intercompany management fee | 0 | 0 | 0 | 0 | ||
Interest expense | 17,023 | 20,472 | 34,713 | 42,826 | ||
Intercompany interest (income) expense | 0 | 0 | 0 | 0 | ||
Loss on extinguishment of debt | 0 | 0 | 0 | 11,683 | ||
Total operating expense | 56,061 | 53,452 | 122,839 | 122,918 | ||
Income from continuing operations before income taxes | 25,120 | 23,896 | 63,839 | 60,276 | ||
Provision for income taxes | 7,453 | 5,178 | 17,499 | 16,645 | ||
Net income from continuing operations | 17,667 | $ 28,673 | 18,718 | $ 24,913 | 46,340 | 43,631 |
Net (loss) income from discontinued operations, net of tax | (834) | $ 8,375 | (2,743) | $ (1,621) | 7,541 | (4,364) |
Net income | 16,833 | 15,975 | 53,881 | 39,267 | ||
Equity in net income (loss) of subsidiaries | 16,833 | 15,975 | 53,881 | 39,267 | ||
CFTC | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | 0 | 0 | ||
CURO Intermediate | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | ||||
Subsidiary Guarantors | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | 0 | 0 | ||
Subsidiary Non-Guarantors | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | 0 | 0 | ||
SPV Subs | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | 0 | 0 | ||
Subsidiaries | ||||||
Condensed Income Statements, Captions [Line Items] | ||||||
Revenue | 237,169 | 488,012 | ||||
Provision for losses | 86,347 | 163,230 | ||||
Net revenue | 150,822 | 324,782 | ||||
Cost of providing services | ||||||
Salaries and benefits | 26,908 | 53,826 | ||||
Occupancy | 13,320 | 26,747 | ||||
Office | 5,532 | 11,985 | ||||
Other store operating expenses | 12,601 | 26,032 | ||||
Advertising | 15,113 | 22,998 | ||||
Total cost of providing services | 73,474 | 141,588 | ||||
Gross margin | 77,348 | 183,194 | ||||
Operating (income) expense: | ||||||
Corporate, district and other expenses | 30,664 | 64,038 | ||||
Intercompany management fee | 0 | 0 | ||||
Interest expense | 20,472 | 42,826 | ||||
Intercompany interest (income) expense | 0 | 0 | ||||
Loss on extinguishment of debt | 0 | 11,683 | ||||
Total operating expense | 51,136 | 118,547 | ||||
Income from continuing operations before income taxes | 26,212 | 64,647 | ||||
Provision for income taxes | 5,754 | 17,754 | ||||
Net income from continuing operations | 20,458 | 46,893 | ||||
Net (loss) income from discontinued operations, net of tax | (2,743) | (4,364) | ||||
Net income | 17,715 | 42,529 | ||||
Equity in net income (loss) of subsidiaries | 17,715 | 42,529 | ||||
Subsidiaries | CFTC | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | ||||
Subsidiaries | CURO Intermediate | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | ||||
Subsidiaries | Subsidiary Guarantors | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | ||||
Subsidiaries | Subsidiary Non-Guarantors | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | ||||
Subsidiaries | SPV Subs | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | ||||
CURO | ||||||
Condensed Income Statements, Captions [Line Items] | ||||||
Revenue | 0 | 0 | 0 | 0 | ||
Provision for losses | 0 | 0 | 0 | 0 | ||
Net revenue | 0 | 0 | 0 | 0 | ||
Cost of providing services | ||||||
Salaries and benefits | 0 | 0 | 0 | 0 | ||
Occupancy | 0 | 0 | 0 | 0 | ||
Office | 0 | 0 | 0 | 0 | ||
Other store operating expenses | 0 | 0 | 0 | 0 | ||
Advertising | 0 | 0 | 0 | 0 | ||
Total cost of providing services | 0 | 0 | 0 | 0 | ||
Gross margin | 0 | 0 | 0 | 0 | ||
Operating (income) expense: | ||||||
Corporate, district and other expenses | 2,631 | 2,316 | 4,973 | 4,371 | ||
Intercompany management fee | 0 | 0 | 0 | 0 | ||
Interest expense | 14,614 | 0 | 29,052 | 0 | ||
Intercompany interest (income) expense | 0 | 0 | 0 | 0 | ||
Loss on extinguishment of debt | 0 | 0 | ||||
Total operating expense | 17,245 | 2,316 | 34,025 | 4,371 | ||
Income from continuing operations before income taxes | (17,245) | (2,316) | (34,025) | (4,371) | ||
Provision for income taxes | (3,232) | (576) | (8,240) | (1,109) | ||
Net income from continuing operations | (14,013) | (1,740) | (25,785) | (3,262) | ||
Net (loss) income from discontinued operations, net of tax | 0 | 0 | 0 | 0 | ||
Net income | (14,013) | (1,740) | (25,785) | (3,262) | ||
Equity in net income (loss) of subsidiaries | 16,833 | 18,718 | 53,881 | 39,267 | ||
CURO | CFTC | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 30,846 | 20,458 | 79,666 | 42,529 | ||
CURO | CURO Intermediate | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | ||||
CURO | Subsidiary Guarantors | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | 0 | 0 | ||
CURO | Subsidiary Non-Guarantors | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | 0 | 0 | ||
CURO | SPV Subs | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | 0 | 0 | ||
Reportable Legal Entities | Subsidiary Guarantors | ||||||
Condensed Income Statements, Captions [Line Items] | ||||||
Revenue | 210,046 | 118,034 | 436,165 | 246,442 | ||
Provision for losses | 92,552 | 46,320 | 177,532 | 82,089 | ||
Net revenue | 117,494 | 71,714 | 258,633 | 164,353 | ||
Cost of providing services | ||||||
Salaries and benefits | 17,422 | 18,070 | 37,373 | 36,089 | ||
Occupancy | 8,033 | 7,643 | 16,043 | 15,289 | ||
Office | 4,004 | 4,247 | 7,893 | 9,830 | ||
Other store operating expenses | 11,789 | 11,254 | 24,921 | 23,284 | ||
Advertising | 11,179 | 12,409 | 17,533 | 17,568 | ||
Total cost of providing services | 52,427 | 53,623 | 103,763 | 102,060 | ||
Gross margin | 65,067 | 18,091 | 154,870 | 62,293 | ||
Operating (income) expense: | ||||||
Corporate, district and other expenses | 30,766 | 25,383 | 72,304 | 53,375 | ||
Intercompany management fee | (3,237) | (6,920) | (6,300) | (13,822) | ||
Interest expense | 27 | (60) | 317 | (172) | ||
Intercompany interest (income) expense | (1,513) | (180) | (2,393) | (259) | ||
Loss on extinguishment of debt | 0 | 0 | ||||
Total operating expense | 26,043 | 18,223 | 63,928 | 39,122 | ||
Income from continuing operations before income taxes | 39,024 | (132) | 90,942 | 23,171 | ||
Provision for income taxes | 9,591 | (4,458) | 23,610 | (6,043) | ||
Net income from continuing operations | 29,433 | 4,326 | 67,332 | 29,214 | ||
Net (loss) income from discontinued operations, net of tax | 0 | 0 | 0 | 0 | ||
Net income | 29,433 | 4,326 | 67,332 | 29,214 | ||
Equity in net income (loss) of subsidiaries | 60,279 | 4,326 | 146,998 | 29,214 | ||
Reportable Legal Entities | Subsidiary Guarantors | CFTC | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | 0 | 0 | ||
Reportable Legal Entities | Subsidiary Guarantors | CURO Intermediate | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | ||||
Reportable Legal Entities | Subsidiary Guarantors | Subsidiary Guarantors | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 29,433 | 0 | 67,332 | 0 | ||
Reportable Legal Entities | Subsidiary Guarantors | Subsidiary Non-Guarantors | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | (9,340) | 0 | (7,235) | 0 | ||
Reportable Legal Entities | Subsidiary Guarantors | SPV Subs | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 10,753 | 0 | 19,569 | 0 | ||
Reportable Legal Entities | Subsidiary Non-Guarantors | ||||||
Condensed Income Statements, Captions [Line Items] | ||||||
Revenue | 28,162 | 47,043 | 54,936 | 93,293 | ||
Provision for losses | 6,344 | 14,360 | 10,443 | 26,910 | ||
Net revenue | 21,818 | 32,683 | 44,493 | 66,383 | ||
Cost of providing services | ||||||
Salaries and benefits | 8,664 | 8,838 | 17,414 | 17,737 | ||
Occupancy | 5,899 | 5,677 | 12,126 | 11,458 | ||
Office | 1,453 | 1,285 | 2,677 | 2,155 | ||
Other store operating expenses | 1,065 | 881 | 2,153 | 1,801 | ||
Advertising | 1,601 | 2,704 | 3,033 | 5,430 | ||
Total cost of providing services | 18,682 | 19,385 | 37,403 | 38,581 | ||
Gross margin | 3,136 | 13,298 | 7,090 | 27,802 | ||
Operating (income) expense: | ||||||
Corporate, district and other expenses | 6,422 | 4,759 | 11,604 | 9,656 | ||
Intercompany management fee | 3,229 | 3,281 | 6,284 | 6,775 | ||
Interest expense | 7 | 7 | 79 | 64 | ||
Intercompany interest (income) expense | 890 | 1,084 | 1,770 | 2,043 | ||
Loss on extinguishment of debt | 0 | 0 | ||||
Total operating expense | 10,548 | 9,131 | 19,737 | 18,538 | ||
Income from continuing operations before income taxes | (7,412) | 4,167 | (12,647) | 9,264 | ||
Provision for income taxes | 1,094 | 1,962 | 2,129 | 3,891 | ||
Net income from continuing operations | (8,506) | 2,205 | (14,776) | 5,373 | ||
Net (loss) income from discontinued operations, net of tax | (834) | (2,743) | 7,541 | (4,364) | ||
Net income | (9,340) | (538) | (7,235) | 1,009 | ||
Equity in net income (loss) of subsidiaries | (9,340) | (538) | (7,235) | 1,009 | ||
Reportable Legal Entities | Subsidiary Non-Guarantors | CFTC | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | 0 | 0 | ||
Reportable Legal Entities | Subsidiary Non-Guarantors | CURO Intermediate | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | ||||
Reportable Legal Entities | Subsidiary Non-Guarantors | Subsidiary Guarantors | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | 0 | 0 | ||
Reportable Legal Entities | Subsidiary Non-Guarantors | Subsidiary Non-Guarantors | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | 0 | 0 | ||
Reportable Legal Entities | Subsidiary Non-Guarantors | SPV Subs | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | 0 | 0 | ||
Reportable Legal Entities | Canada SPV | ||||||
Condensed Income Statements, Captions [Line Items] | ||||||
Revenue | 26,092 | 51,138 | ||||
Provision for losses | 13,114 | 26,420 | ||||
Net revenue | 12,978 | 24,718 | ||||
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 | 12,978 | 24,718 | ||||
Operating (income) expense: | ||||||
Corporate, district and other expenses | (781) | (755) | ||||
Intercompany management fee | 8 | 16 | ||||
Interest expense | 2,375 | 5,265 | ||||
Intercompany interest (income) expense | 623 | 623 | ||||
Total operating expense | 2,225 | 5,149 | ||||
Income from continuing operations before income taxes | 10,753 | 19,569 | ||||
Provision for income taxes | 0 | 0 | ||||
Net income from continuing operations | 10,753 | 19,569 | ||||
Net (loss) income from discontinued operations, net of tax | 0 | 0 | ||||
Net income | 10,753 | 19,569 | ||||
Equity in net income (loss) of subsidiaries | 10,753 | 19,569 | ||||
Reportable Legal Entities | Canada SPV | CFTC | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | ||||
Reportable Legal Entities | Canada SPV | Subsidiary Guarantors | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | ||||
Reportable Legal Entities | Canada SPV | Subsidiary Non-Guarantors | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | ||||
Reportable Legal Entities | Canada SPV | SPV Subs | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | ||||
Reportable Legal Entities | SPV Subs | ||||||
Condensed Income Statements, Captions [Line Items] | ||||||
Revenue | 72,092 | 148,277 | ||||
Provision for losses | 25,667 | 54,231 | ||||
Net revenue | 46,425 | 94,046 | ||||
Cost of providing services | ||||||
Salaries and benefits | 0 | 0 | ||||
Occupancy | 0 | 0 | ||||
Office | 0 | 0 | ||||
Other store operating expenses | 466 | 947 | ||||
Advertising | 0 | 0 | ||||
Total cost of providing services | 466 | 947 | ||||
Gross margin | 45,959 | 93,099 | ||||
Operating (income) expense: | ||||||
Corporate, district and other expenses | 46 | 76 | ||||
Intercompany management fee | 3,639 | 7,047 | ||||
Interest expense | 3,940 | 8,027 | ||||
Intercompany interest (income) expense | 0 | 0 | ||||
Loss on extinguishment of debt | 0 | 0 | ||||
Total operating expense | 7,625 | 15,150 | ||||
Income from continuing operations before income taxes | 38,334 | 77,949 | ||||
Provision for income taxes | 0 | 0 | ||||
Net income from continuing operations | 38,334 | 77,949 | ||||
Net (loss) income from discontinued operations, net of tax | 0 | 0 | ||||
Net income | 38,334 | 77,949 | ||||
Equity in net income (loss) of subsidiaries | 38,334 | 77,949 | ||||
Reportable Legal Entities | SPV Subs | CFTC | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | ||||
Reportable Legal Entities | SPV Subs | CURO Intermediate | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | ||||
Reportable Legal Entities | SPV Subs | Subsidiary Guarantors | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | ||||
Reportable Legal Entities | SPV Subs | Subsidiary Non-Guarantors | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | ||||
Reportable Legal Entities | SPV Subs | SPV Subs | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | ||||
Eliminations | ||||||
Condensed Income Statements, Captions [Line Items] | ||||||
Revenue | 0 | 0 | 0 | 0 | ||
Provision for losses | 0 | 0 | 0 | 0 | ||
Net revenue | 0 | 0 | 0 | 0 | ||
Cost of providing services | ||||||
Salaries and benefits | 0 | 0 | 0 | 0 | ||
Occupancy | 0 | 0 | 0 | 0 | ||
Office | 0 | 0 | 0 | 0 | ||
Other store operating expenses | 0 | 0 | 0 | 0 | ||
Advertising | 0 | 0 | 0 | 0 | ||
Total cost of providing services | 0 | 0 | 0 | 0 | ||
Gross margin | 0 | 0 | 0 | 0 | ||
Operating (income) expense: | ||||||
Corporate, district and other expenses | 0 | 0 | 0 | 0 | ||
Intercompany management fee | 0 | 0 | 0 | 0 | ||
Interest expense | 0 | 0 | 0 | 0 | ||
Intercompany interest (income) expense | 0 | 0 | 0 | 0 | ||
Loss on extinguishment of debt | 0 | 0 | ||||
Total operating expense | 0 | 0 | 0 | 0 | ||
Income from continuing operations before income taxes | 0 | 0 | 0 | 0 | ||
Provision for income taxes | 0 | 0 | 0 | 0 | ||
Net income from continuing operations | 0 | 0 | 0 | 0 | ||
Net (loss) income from discontinued operations, net of tax | 0 | 0 | 0 | 0 | ||
Net income | 0 | 0 | 0 | 0 | ||
Equity in net income (loss) of subsidiaries | (61,692) | (20,458) | (159,332) | (42,529) | ||
Eliminations | CFTC | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | (30,846) | (20,458) | (79,666) | (42,529) | ||
Eliminations | CURO Intermediate | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | ||||
Eliminations | Subsidiary Guarantors | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | (29,433) | 0 | (67,332) | 0 | ||
Eliminations | Subsidiary Non-Guarantors | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 9,340 | 0 | 7,235 | 0 | ||
Eliminations | SPV Subs | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | $ (10,753) | 0 | $ (19,569) | 0 | ||
Eliminations | Subsidiaries | ||||||
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 | ||||
Interest expense | 0 | 0 | ||||
Intercompany interest (income) expense | 0 | 0 | ||||
Loss on extinguishment of debt | 0 | 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 (loss) income from discontinued operations, net of tax | 0 | 0 | ||||
Net income | 0 | 0 | ||||
Equity in net income (loss) of subsidiaries | (32,083) | (77,766) | ||||
Eliminations | Subsidiaries | CFTC | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | ||||
Eliminations | Subsidiaries | CURO Intermediate | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 12,782 | 30,406 | ||||
Eliminations | Subsidiaries | Subsidiary Guarantors | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | (4,326) | (29,214) | ||||
Eliminations | Subsidiaries | Subsidiary Non-Guarantors | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | (2,205) | (1,009) | ||||
Eliminations | Subsidiaries | SPV Subs | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | (38,334) | (77,949) | ||||
CFTC | Reportable Legal Entities | Subsidiary Issuer | ||||||
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 | 458 | 906 | ||||
Intercompany management fee | 0 | 0 | ||||
Interest expense | 16,585 | 34,907 | ||||
Intercompany interest (income) expense | 0 | 0 | ||||
Loss on extinguishment of debt | 0 | 11,683 | ||||
Total operating expense | 17,043 | 47,496 | ||||
Income from continuing operations before income taxes | (17,043) | (47,496) | ||||
Provision for income taxes | (5,418) | (12,259) | ||||
Net income from continuing operations | (11,625) | (35,237) | ||||
Net (loss) income from discontinued operations, net of tax | 0 | 0 | ||||
Net income | (11,625) | (35,237) | ||||
Equity in net income (loss) of subsidiaries | 20,458 | 42,529 | ||||
CFTC | Reportable Legal Entities | Subsidiary Issuer | CFTC | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | ||||
CFTC | Reportable Legal Entities | Subsidiary Issuer | CURO Intermediate | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | (12,782) | (30,406) | ||||
CFTC | Reportable Legal Entities | Subsidiary Issuer | Subsidiary Guarantors | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 4,326 | 29,214 | ||||
CFTC | Reportable Legal Entities | Subsidiary Issuer | Subsidiary Non-Guarantors | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 2,205 | 1,009 | ||||
CFTC | Reportable Legal Entities | Subsidiary Issuer | SPV Subs | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 38,334 | 77,949 | ||||
CURO Intermediate | Reportable Legal Entities | Subsidiary Issuer | ||||||
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 | 18 | 25 | ||||
Intercompany management fee | 0 | 0 | ||||
Interest expense | 0 | 0 | ||||
Intercompany interest (income) expense | (904) | (1,784) | ||||
Loss on extinguishment of debt | 0 | 0 | ||||
Total operating expense | (886) | (1,759) | ||||
Income from continuing operations before income taxes | 886 | 1,759 | ||||
Provision for income taxes | 13,668 | 32,165 | ||||
Net income from continuing operations | (12,782) | (30,406) | ||||
Net (loss) income from discontinued operations, net of tax | 0 | 0 | ||||
Net income | (12,782) | (30,406) | ||||
Equity in net income (loss) of subsidiaries | (12,782) | (30,406) | ||||
CURO Intermediate | Reportable Legal Entities | Subsidiary Issuer | CFTC | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | ||||
CURO Intermediate | Reportable Legal Entities | Subsidiary Issuer | CURO Intermediate | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | ||||
CURO Intermediate | Reportable Legal Entities | Subsidiary Issuer | Subsidiary Guarantors | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | ||||
CURO Intermediate | Reportable Legal Entities | Subsidiary Issuer | Subsidiary Non-Guarantors | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | 0 | 0 | ||||
CURO Intermediate | Reportable Legal Entities | Subsidiary Issuer | SPV Subs | ||||||
Operating (income) expense: | ||||||
Equity in net income (loss) of subsidiaries | $ 0 | $ 0 |
CONDENSED CONSOLIDATING FINAN_6
CONDENSED CONSOLIDATING FINANCIAL INFORMATION - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Aug. 02, 2018 | ||
Cash flows from operating activities | ||||
Net cash provided by (used in) continuing operating activities | $ 312,319 | $ 246,733 | ||
Net cash (used in) provided by discontinued operating activities | (504) | 5,458 | ||
Net cash provided by operating activities | 311,815 | 252,191 | ||
Cash flows from investing activities | ||||
Purchase of property, equipment and software | (6,164) | (2,957) | ||
Investment in Cognical Holdings | (4,368) | (958) | ||
Originations of loans, net | (217,199) | (194,636) | ||
Net cash used in continuing investing activities | (227,731) | (198,551) | ||
Net cash used in discontinued investing activities | (14,213) | (14,349) | ||
Net cash used in investing activities | (241,944) | (212,900) | ||
Cash flows from financing activities | ||||
Payments on subordinated stockholder debt | (2,245) | 0 | ||
Net proceeds from issuance of common stock | 0 | 12,431 | ||
Proceeds from exercise of stock options | 27 | 39 | ||
Payments on 12.00% Senior Secured Notes | (77,500) | |||
Payments of call premiums from early debt extinguishments | 0 | (9,300) | ||
Debt issuance costs paid | (198) | (168) | ||
Repurchase of common stock | (1,762) | 0 | ||
Net cash used in financing activities | [1] | (45,180) | (80,661) | |
Effect of exchange rate changes on cash and restricted cash | 1,461 | (4,189) | ||
Net increase (decrease) in cash and restricted cash | 26,152 | (45,559) | ||
Cash and restricted cash at beginning of period | 99,857 | 174,491 | ||
Cash and restricted cash at end of period | 126,009 | 128,932 | ||
Less: Cash and restricted cash of discontinued operations at end of period | 0 | 12,460 | ||
Cash and restricted cash of continuing operations at end of period | 126,009 | 116,472 | ||
Non-Recourse U.S. SPV Facility | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 0 | |||
Payments on credit facilities | 0 | |||
Non-Recourse Canada SPV Facility | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 3,750 | |||
Payments on credit facilities | (24,752) | |||
Senior Revolver | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 68,002 | |||
Payments on credit facilities | (88,002) | |||
Revolving Credit Facility | Non-Recourse U.S. SPV Facility | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 0 | 13,000 | ||
Payments on credit facilities | 0 | (19,163) | ||
Revolving Credit Facility | Non-Recourse Canada SPV Facility | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 3,750 | 0 | ||
Payments on credit facilities | (24,752) | 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 | 68,002 | 18,798 | ||
Payments on credit facilities | (88,002) | (18,798) | ||
Eliminations | ||||
Cash flows from operating activities | ||||
Net cash provided by (used in) continuing operating activities | 1,544 | |||
Net cash (used in) provided by discontinued operating activities | 0 | |||
Cash flows from investing activities | ||||
Purchase of property, equipment and software | 0 | |||
Investment in Cognical Holdings | 0 | |||
Originations of loans, net | 0 | |||
Net cash used in continuing investing activities | 0 | |||
Net cash used in discontinued investing activities | 0 | |||
Cash flows from financing activities | ||||
Payments on subordinated stockholder debt | 0 | |||
Proceeds from exercise of stock options | 0 | |||
Debt issuance costs paid | 0 | |||
Repurchase of common stock | 0 | |||
Net cash used in financing activities | 0 | |||
Effect of exchange rate changes on cash and restricted cash | (1,544) | |||
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 U.S. SPV Facility | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 0 | |||
Payments on credit facilities | 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 | 204,323 | 38,259 | ||
Net cash (used in) provided by discontinued operating activities | 0 | 0 | ||
Net cash provided by operating activities | 38,259 | |||
Cash flows from investing activities | ||||
Purchase of property, equipment and software | (4,998) | (1,983) | ||
Investment in Cognical Holdings | (4,368) | 0 | ||
Originations of loans, net | (142,871) | (84,640) | ||
Net cash used in continuing investing activities | (152,237) | (86,623) | ||
Net cash used in discontinued investing activities | 0 | 0 | ||
Net cash used in investing activities | (86,623) | |||
Cash flows from financing activities | ||||
Payments on subordinated stockholder debt | 0 | |||
Net proceeds from issuance of common stock | 0 | |||
Proceeds from exercise of stock options | 69 | 0 | ||
Payments on 12.00% Senior Secured Notes | 0 | |||
Payments of call premiums from early debt extinguishments | 0 | |||
Debt issuance costs paid | 0 | 0 | ||
Repurchase of common stock | 0 | |||
Net cash used in financing activities | (19,931) | 0 | ||
Effect of exchange rate changes on cash and restricted cash | 0 | 0 | ||
Net increase (decrease) in cash and restricted cash | 32,155 | (48,364) | ||
Cash and restricted cash at beginning of period | 52,397 | 119,056 | ||
Cash and restricted cash at end of period | 84,552 | 70,692 | ||
Less: Cash and restricted cash of discontinued operations at end of period | 0 | |||
Cash and restricted cash of continuing operations at end of period | 70,692 | |||
Subsidiary Guarantors | Reportable Legal Entities | 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 | 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 | 30,000 | |||
Payments on credit facilities | (50,000) | |||
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 | 10,929 | 53,104 | ||
Net cash (used in) provided by discontinued operating activities | (504) | 14,225 | ||
Net cash provided by operating activities | 67,329 | |||
Cash flows from investing activities | ||||
Purchase of property, equipment and software | (1,166) | (974) | ||
Investment in Cognical Holdings | 0 | 0 | ||
Originations of loans, net | (3,227) | (48,795) | ||
Net cash used in continuing investing activities | (4,393) | (49,769) | ||
Net cash used in discontinued investing activities | (14,213) | (14,349) | ||
Net cash used in investing activities | (64,118) | |||
Cash flows from financing activities | ||||
Payments on subordinated stockholder debt | (2,245) | |||
Net proceeds from issuance of common stock | 0 | |||
Proceeds from exercise of stock options | 0 | 0 | ||
Payments on 12.00% Senior Secured Notes | 0 | |||
Payments of call premiums from early debt extinguishments | 0 | |||
Debt issuance costs paid | 0 | (78) | ||
Repurchase of common stock | 0 | |||
Net cash used in financing activities | (2,245) | (78) | ||
Effect of exchange rate changes on cash and restricted cash | 2,444 | (651) | ||
Net increase (decrease) in cash and restricted cash | (7,982) | 2,482 | ||
Cash and restricted cash at beginning of period | 34,620 | 48,484 | ||
Cash and restricted cash at end of period | 26,638 | 50,966 | ||
Less: Cash and restricted cash of discontinued operations at end of period | 12,460 | |||
Cash and restricted cash of continuing operations at end of period | 38,506 | |||
Subsidiary Non-Guarantors | Reportable Legal Entities | 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 | 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 | 38,002 | |||
Payments on credit facilities | (38,002) | |||
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 | 8,798 | |||
Payments on credit facilities | (8,798) | |||
SPV Subs | Reportable Legal Entities | ||||
Cash flows from operating activities | ||||
Net cash provided by (used in) continuing operating activities | 67,767 | |||
Net cash (used in) provided by discontinued operating activities | 0 | |||
Net cash provided by operating activities | 67,767 | |||
Cash flows from investing activities | ||||
Purchase of property, equipment and software | 0 | |||
Investment in Cognical Holdings | 0 | |||
Originations of loans, net | (61,201) | |||
Net cash used in continuing investing activities | (61,201) | |||
Net cash used in discontinued investing activities | 0 | |||
Net cash used in investing activities | (61,201) | |||
Cash flows from financing activities | ||||
Net proceeds from issuance of common stock | 0 | |||
Proceeds from exercise of stock options | 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 | (6,163) | |||
Effect of exchange rate changes on cash and restricted cash | 0 | |||
Net increase (decrease) in cash and restricted cash | 403 | |||
Cash and restricted cash at beginning of period | 6,871 | |||
Cash and restricted cash at end of period | 7,274 | |||
Less: Cash and restricted cash of discontinued operations at end of period | 0 | |||
Cash and restricted cash of continuing operations at end of period | 7,274 | |||
SPV Subs | Reportable Legal Entities | Revolving Credit Facility | Non-Recourse U.S. SPV Facility | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 13,000 | |||
Payments on credit facilities | (19,163) | |||
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 | 93,690 | |||
Net cash (used in) provided by discontinued operating activities | 0 | |||
Cash flows from investing activities | ||||
Purchase of property, equipment and software | 0 | |||
Investment in Cognical Holdings | 0 | |||
Originations of loans, net | (71,101) | |||
Net cash used in continuing investing activities | (71,101) | |||
Net cash used in discontinued investing activities | 0 | |||
Cash flows from financing activities | ||||
Payments on subordinated stockholder debt | 0 | |||
Proceeds from exercise of stock options | 0 | |||
Debt issuance costs paid | (169) | |||
Repurchase of common stock | 0 | |||
Net cash used in financing activities | (21,171) | |||
Effect of exchange rate changes on cash and restricted cash | 561 | |||
Net increase (decrease) in cash and restricted cash | 1,979 | |||
Cash and restricted cash at beginning of period | 12,840 | |||
Cash and restricted cash at end of period | 14,819 | |||
Canada SPV | Reportable Legal Entities | Non-Recourse U.S. SPV Facility | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 0 | |||
Payments on credit facilities | 0 | |||
Canada SPV | Reportable Legal Entities | Non-Recourse Canada SPV Facility | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 3,750 | |||
Payments on credit facilities | (24,752) | |||
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 | 259,283 | |||
Net cash (used in) provided by discontinued operating activities | 5,458 | |||
Net cash provided by operating activities | 264,741 | |||
Cash flows from investing activities | ||||
Purchase of property, equipment and software | (2,957) | |||
Investment in Cognical Holdings | (958) | |||
Originations of loans, net | (194,636) | |||
Net cash used in continuing investing activities | (198,551) | |||
Net cash used in discontinued investing activities | (14,349) | |||
Net cash used in investing activities | (212,900) | |||
Cash flows from financing activities | ||||
Net proceeds from issuance of common stock | 0 | |||
Proceeds from exercise of stock options | 0 | |||
Payments on 12.00% Senior Secured Notes | (77,500) | |||
Payments of call premiums from early debt extinguishments | (9,300) | |||
Debt issuance costs paid | (168) | |||
Net cash used in financing activities | (93,131) | |||
Effect of exchange rate changes on cash and restricted cash | (4,189) | |||
Net increase (decrease) in cash and restricted cash | (45,479) | |||
Cash and restricted cash at beginning of period | 174,411 | |||
Cash and restricted cash at end of period | 128,932 | |||
Less: Cash and restricted cash of discontinued operations at end of period | 12,460 | |||
Cash and restricted cash of continuing operations at end of period | 116,472 | |||
Subsidiaries | Revolving Credit Facility | Non-Recourse U.S. SPV Facility | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 13,000 | |||
Payments on credit facilities | (19,163) | |||
Subsidiaries | Revolving Credit Facility | Senior Revolver | Line of Credit | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 18,798 | |||
Payments on credit facilities | (18,798) | |||
Subsidiaries | Eliminations | ||||
Cash flows from operating activities | ||||
Net cash provided by (used in) continuing operating activities | 12,305 | |||
Net cash (used in) provided by discontinued operating activities | (8,767) | |||
Net cash provided by operating activities | 3,538 | |||
Cash flows from investing activities | ||||
Purchase of property, equipment and software | 0 | |||
Investment in Cognical Holdings | 0 | |||
Originations of loans, net | 0 | |||
Net cash used in continuing investing activities | 0 | |||
Net cash used in discontinued investing activities | 0 | |||
Net cash used in investing activities | 0 | |||
Cash flows from financing activities | ||||
Net proceeds from issuance of common stock | 0 | |||
Proceeds from exercise of stock options | 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 | (3,538) | |||
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 | |||
Less: Cash and restricted cash of discontinued operations at end of period | 0 | |||
Cash and restricted cash of continuing operations 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 | 1,833 | (12,550) | ||
Net cash (used in) provided by discontinued operating activities | 0 | 0 | ||
Net cash provided by operating activities | (12,550) | |||
Cash flows from investing activities | ||||
Purchase of property, equipment and software | 0 | 0 | ||
Investment in Cognical Holdings | 0 | 0 | ||
Originations of loans, net | 0 | 0 | ||
Net cash used in continuing investing activities | 0 | 0 | ||
Net cash used in discontinued investing activities | 0 | 0 | ||
Net cash used in investing activities | 0 | |||
Cash flows from financing activities | ||||
Payments on subordinated stockholder debt | 0 | |||
Net proceeds from issuance of common stock | 12,431 | |||
Proceeds from exercise of stock options | (42) | 39 | ||
Payments on 12.00% Senior Secured Notes | 0 | |||
Payments of call premiums from early debt extinguishments | 0 | |||
Debt issuance costs paid | (29) | 0 | ||
Repurchase of common stock | (1,762) | |||
Net cash used in financing activities | (1,833) | 12,470 | ||
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 | ||
Less: Cash and restricted cash of discontinued operations at end of period | 0 | |||
Cash and restricted cash of continuing operations at end of period | 0 | |||
CURO | Non-Recourse U.S. SPV Facility | ||||
Cash flows from financing activities | ||||
Proceeds from credit facilities | 0 | |||
Payments on credit facilities | 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 | 87,848 | |||
Net cash (used in) provided by discontinued operating activities | 0 | |||
Net cash provided by operating activities | 87,848 | |||
Cash flows from investing activities | ||||
Purchase of property, equipment and software | 0 | |||
Investment in Cognical Holdings | (958) | |||
Originations of loans, net | 0 | |||
Net cash used in continuing investing activities | (958) | |||
Net cash used in discontinued investing activities | 0 | |||
Net cash used in investing activities | (958) | |||
Cash flows from financing activities | ||||
Net proceeds from issuance of common stock | 0 | |||
Proceeds from exercise of stock options | 0 | |||
Payments on 12.00% Senior Secured Notes | (77,500) | |||
Payments of call premiums from early debt extinguishments | (9,300) | |||
Debt issuance costs paid | (90) | |||
Net cash used in financing activities | (86,890) | |||
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 | |||
Less: Cash and restricted cash of discontinued operations at end of period | 0 | |||
Cash and restricted cash of continuing operations 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 | |||
Net cash provided by operating activities | 0 | |||
Cash flows from investing activities | ||||
Purchase of property, equipment and software | 0 | |||
Investment in Cognical Holdings | 0 | |||
Originations of loans, net | 0 | |||
Net cash used in continuing investing activities | 0 | |||
Net cash used in discontinued investing activities | 0 | |||
Net cash used in investing activities | 0 | |||
Cash flows from financing activities | ||||
Net proceeds from issuance of common stock | 0 | |||
Proceeds from exercise of stock options | 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 | |||
Less: Cash and restricted cash of discontinued operations at end of period | 0 | |||
Cash and restricted cash of continuing operations 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 |
SHARE REPURCHASE PROGRAM (Detai
SHARE REPURCHASE PROGRAM (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Apr. 30, 2019 | |
Equity [Abstract] | |||
Total authorized repurchase amount | $ 50,000,000 | $ 50,000,000 | $ 50,000,000 |
Total number of shares repurchased (in shares) | 244,200 | ||
Average price paid per share (in dollars per share) | $ 10.26 | ||
Total value of shares repurchased | 2,507,000 | $ 2,507,000 | |
Total remaining authorized repurchase amount | $ 47,493,000 | $ 47,493,000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Aug. 02, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2019 | |
Subsequent Event [Line Items] | |||||
Total number of shares repurchased (in shares) | 244,200 | ||||
Average price paid per share (in dollars per share) | $ 10.26 | ||||
Total value of shares repurchased | $ 2,507 | $ 2,507 | |||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Total number of shares repurchased (in shares) | 989,500 | ||||
Average price paid per share (in dollars per share) | $ 10.85 | ||||
Total value of shares repurchased | $ 10,731 | ||||
Cognical Holdings, Inc. (Zibby) | |||||
Subsequent Event [Line Items] | |||||
Payments to acquire equity method investments | $ 2,800 | ||||
Ownership percentage | 30.00% | 30.00% | |||
Cognical Holdings, Inc. (Zibby) | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Additional shares purchased (in shares) | 10,695,187 | ||||
Payments to acquire equity method investments | $ 4,000 | ||||
Ownership percentage | 42.30% |