DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 3 Months Ended | |
Mar. 31, 2020 | May 01, 2020 | |
DOCUMENT AND ENTITY INFORMATION [Abstract] | ||
Entity Registrant Name | CURO GROUP HOLDINGS CORP. | |
Entity Central Index Key | 0001711291 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity common stock shares outstanding (in shares) | 40,789,687 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash | $ 138,714 | $ 75,242 |
Restricted cash (includes restricted cash of consolidated VIEs of $22,317 and $17,427 as of March 31, 2020 and December 31, 2019, respectively) | 41,527 | 34,779 |
Gross loans receivable (includes loans of consolidated VIEs of $231,258 and $244,492 as of March 31, 2020 and December 31, 2019, respectively) | 564,437 | 665,828 |
Less: allowance for loan losses (includes allowance for losses of consolidated VIEs of $27,421 and $24,425 as of March 31, 2020 and December 31, 2019, respectively) | (99,842) | (106,835) |
Loans receivable, net | 464,595 | 558,993 |
Income taxes receivable | 24,435 | 11,426 |
Prepaid expenses and other | 34,120 | 35,890 |
Property and equipment, net | 66,787 | 70,811 |
Right of use asset - operating leases | 114,272 | 117,453 |
Deferred tax assets | 0 | 5,055 |
Goodwill | 132,825 | 120,609 |
Other intangibles, net | 33,944 | 33,927 |
Other assets | 15,547 | 17,710 |
Total Assets | 1,066,766 | 1,081,895 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable and accrued liabilities (includes accounts payable and accrued liabilities of consolidated VIEs of $13,267 and $13,462 as of March 31, 2020 and December 31, 2019, respectively) | 53,603 | 60,083 |
Deferred revenue | 6,655 | 10,170 |
Lease liability - operating leases | 121,715 | 124,999 |
Accrued interest (includes accrued interest of consolidated VIEs of $627 and $871 as of March 31, 2020 and December 31, 2019, respectively) | 5,392 | 19,847 |
Liability for losses on CSO lender-owned consumer loans | 9,189 | 10,623 |
Debt (includes debt and issuance costs of consolidated VIEs of $87,365 and $2,491 as of March 31, 2020 and $115,243 and $3,022 as of December 31, 2019, respectively) | 788,451 | 790,544 |
Other long-term liabilities | 9,095 | 10,664 |
Deferred tax liabilities | 13,095 | 4,452 |
Total Liabilities | 1,007,195 | 1,031,382 |
Commitments and contingencies (Note 13) | ||
Stockholders' Equity | ||
Preferred stock - $0.001 par value, 25,000,000 shares authorized; no shares were issued | 0 | 0 |
Common stock - $0.001 par value; 225,000,000 shares authorized; 46,934,750 and 46,770,765 shares issued; and 40,779,447 and 41,156,224 shares outstanding at the respective period ends | 9 | 9 |
Treasury stock, at cost - 6,155,303 and 5,614,541 shares as of the respective period ends | (77,852) | (72,343) |
Paid-in capital | 70,798 | 68,087 |
Retained earnings | 127,472 | 93,423 |
Accumulated other comprehensive loss | (60,856) | (38,663) |
Total Stockholders' Equity | 59,571 | 50,513 |
Total Liabilities and Stockholders' Equity | $ 1,066,766 | $ 1,081,895 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Restricted cash | $ 41,527 | $ 34,779 |
Total gross loans receivable | 564,437 | 665,828 |
Allowance for losses | 99,842 | 106,835 |
Accounts payable and accrued liabilities (includes accounts payable and accrued liabilities of consolidated VIEs of $13,267 and $13,462 as of March 31, 2020 and December 31, 2019, respectively) | 53,603 | 60,083 |
Accrued interest | 5,392 | 19,847 |
Debt | $ 788,451 | $ 790,544 |
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) | 46,934,750 | 46,770,765 |
Class A common stock, outstanding (in shares) | 40,779,447 | 41,156,224 |
Treasury stock (in shares) | 6,155,303 | 5,614,541 |
Variable Interest Entity | ||
Restricted cash | $ 22,317 | $ 17,427 |
Total gross loans receivable | 231,258 | 244,492 |
Allowance for losses | 27,421 | 24,425 |
Accounts payable and accrued liabilities (includes accounts payable and accrued liabilities of consolidated VIEs of $13,267 and $13,462 as of March 31, 2020 and December 31, 2019, respectively) | 13,267 | 13,462 |
Accrued interest | 627 | 871 |
Debt | 87,365 | 115,243 |
Issuance costs | $ 2,491 | $ 3,022 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Revenue | $ 280,806 | $ 277,939 |
Provision for losses | 113,536 | 102,385 |
Net revenue | 167,270 | 175,554 |
Cost of providing services | ||
Salaries and benefits | 26,007 | 28,701 |
Occupancy | 14,016 | 14,237 |
Office | 5,674 | 5,113 |
Other costs of providing services | 9,655 | 14,220 |
Advertising | 12,219 | 7,786 |
Total cost of providing services | 67,571 | 70,057 |
Gross margin | 99,699 | 105,497 |
Operating expense | ||
Corporate, district and other expenses | 42,807 | 49,088 |
Interest expense | 17,324 | 17,690 |
Loss from equity method investment | 1,618 | 0 |
Total operating expense | 61,749 | 66,778 |
Income from continuing operations before income taxes | 37,950 | 38,719 |
Provision for income taxes | 1,937 | 10,046 |
Net income from continuing operations | 36,013 | 28,673 |
Net income (loss) from discontinued operations, before income tax | 390 | (39,048) |
Income tax expense (benefit) related to disposition | 98 | (47,423) |
Net income from discontinued operations | 292 | 8,375 |
Net income | $ 36,305 | $ 37,048 |
Basic earnings per share: | ||
Continuing operations (in dollars per share) | $ 0.88 | $ 0.62 |
Discontinued operations (in dollars per share) | 0.01 | 0.18 |
Basic earnings per share (in dollars per share) | 0.89 | 0.80 |
Diluted earnings per share: | ||
Continuing operations (in dollars per share) | 0.86 | 0.61 |
Discontinued operations (in dollars per share) | 0.01 | 0.18 |
Diluted earnings per share (in dollars per share) | $ 0.87 | $ 0.79 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 40,817 | 46,424 |
Diluted (in shares) | 41,892 | 47,319 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 36,305 | $ 37,048 |
Other comprehensive (loss) income: | ||
Foreign currency translation adjustment, net of $0 tax in both periods | (22,193) | 16,695 |
Other comprehensive (loss) income | (22,193) | 16,695 |
Comprehensive income | $ 14,112 | $ 53,743 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustment, tax effect | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Cash flows from operating activities | |||
Net income from continuing operations | $ 36,013 | $ 28,673 | |
Adjustments to reconcile net income to net cash provided by continuing operating activities: | |||
Depreciation and amortization | 4,537 | 4,920 | |
Provision for losses | 113,536 | 102,385 | |
Amortization of debt issuance costs and bond discount | 688 | 872 | |
Deferred income tax (benefit) expense | 14,093 | (10,343) | |
Loss on disposal of property and equipment | 44 | 991 | |
Loss from equity method investment | 1,618 | 0 | |
Share-based compensation | 3,194 | 2,172 | |
Changes in operating assets and liabilities: | |||
Accrued interest on loans receivable | 16,671 | 1,937 | |
Prepaid expenses and other assets | 982 | 9,938 | |
Other assets | 332 | (6,374) | |
Accounts payable and accrued liabilities | (7,492) | 2,326 | |
Deferred revenue | (3,276) | (1,709) | |
Income taxes payable | 0 | 29,562 | |
Income taxes receivable | (13,134) | (9,890) | |
Accrued interest | (14,389) | (15,329) | |
Other liabilities | (1,548) | 868 | |
Net cash provided by continuing operating activities | 151,869 | 140,999 | |
Net cash provided by (used in) discontinued operating activities | 390 | (504) | |
Net cash provided by operating activities | 152,259 | 140,495 | |
Cash flows from investing activities | |||
Purchase of property, equipment and software | (3,658) | (3,119) | |
Loans receivable originated or acquired | (439,244) | (420,568) | |
Loans receivable repaid | 378,843 | 355,621 | |
Investments in Katapult | 0 | (1,568) | |
Acquisition of Ad Astra, net of acquiree's cash received | (14,418) | 0 | |
Net cash used in continuing investing activities | (78,477) | (69,634) | |
Net cash used in discontinued investing activities | 0 | (14,213) | |
Net cash used in investing activities | (78,477) | (83,847) | |
Cash flows from financing activities | |||
Debt issuance costs paid | (150) | (199) | |
Proceeds from exercise of stock options | 126 | 40 | |
Payments to net share settle restricted stock units vesting | (609) | (37) | |
Repurchase of common stock | (5,908) | 0 | |
Dividends paid to stockholders | (2,247) | 0 | |
Net cash (used in) provided by financing activities | [1] | (2,725) | (41,265) |
Effect of exchange rate changes on cash and restricted cash | (837) | 1,938 | |
Net increase in cash and restricted cash | 70,220 | 17,321 | |
Cash and restricted cash at beginning of period | 110,021 | 99,857 | |
Cash and restricted cash at end of period | 180,241 | 117,178 | |
Revolving Credit Facility | Non-Recourse Canada SPV Facility | |||
Cash flows from financing activities | |||
Proceeds from credit facilities | 23,560 | 3,762 | |
Payments on credit facilities | (42,497) | (24,831) | |
Revolving Credit Facility | Senior Revolver | Line of Credit | |||
Cash flows from financing activities | |||
Proceeds from credit facilities | 69,938 | 30,478 | |
Payments on credit facilities | $ (44,938) | $ (50,478) | |
[1] | (1) Financing activities were not impacted by discontinued operations |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Cash | $ 138,714 | $ 75,242 | $ 82,859 |
Restricted cash | 41,527 | 34,779 | 34,319 |
Total cash and restricted cash used in the Statements of Cash Flows | 180,241 | 110,021 | 117,178 |
Variable Interest Entity | |||
Restricted cash | $ 22,317 | $ 17,427 | $ 17,427 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS Nature of Operations and Basis of Presentation The terms “CURO" and the “Company” refer to CURO Group Holdings Corp. and its wholly-owned subsidiaries as a consolidated entity, except where otherwise stated. CURO is a growth-oriented, technology-enabled, highly-diversified consumer finance company serving a wide range of underbanked consumers in the U.S., Canada and, through February 25, 2019, the U.K. The Company has prepared the accompanying unaudited Condensed Consolidated Financial Statements in accordance with US GAAP, and with the accounting policies described in its 2019 Form 10-K filed with the SEC on March 9, 2020. Interim results of operations are not necessarily indicative of the results that might be expected for future interim periods or for the year ending December 31, 2020 . 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, the Company qualifies as an SRC as defined by the SEC, which allows registrants to report information under scaled disclosure requirements. SRC status is determined on an annual basis as of the last business day of the most recently completed second fiscal quarter. Under these rules, the Company met the definition of an SRC as of June 30, 2019, and it will reevaluate as of June 30, 2020. The Condensed Consolidated Financial Statements and the accompanying notes reflect all adjustments (consisting only of adjustments of a normal and recurring nature) 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. COVID-19 A novel strain of coronavirus, COVID-19, surfaced in late 2019 and has subsequently spread worldwide, including to the U.S. and Canada. On March 11, 2020, the World Health Organization categorized COVID-19 as a pandemic, and the President of the United States declared the COVID-19 outbreak a national emergency. Macroeconomic conditions, in general, and the Company's operations have been significantly affected by the COVID-19 pandemic and there are no reliable estimates of how long the pandemic will last or the scope or magnitude of its near-term or long-term impact. In response, various governmental bodies have issued decrees prohibiting certain businesses from continuing to operate and certain classes of workers from reporting to work. However, CURO's operations have been designated as essential financial services by federal guidelines and local regulations. As a provider of an essential service, the Company remains focused on protecting the health and wellbeing of its employees, customers and the communities in which it operates while assuring the continuity of its business operations. While CURO continues serving its customers through both store and online channels, store hours are reduced, enhanced cleaning protocols for all facilities are in place, and social distancing guidelines are in effect to aid in combating the spread of the pandemic. On March 27, 2020, the U.S. government enacted the CARES Act, which includes modifications to the limitation on business interest expense and net operating loss provisions, and provides a payment delay of employer payroll taxes during 2020 after the date of enactment. The Company expects to delay payment of employer payroll taxes otherwise due in 2020 with 50% due by December 31, 2021 and the remaining 50% by December 31, 2022. Refer to Note 7, "Income Taxes" for the CARES Act impact to the Company's provision for income taxes. In light of COVID-19, the Company also considered implications of the pandemic on its estimates and assumptions as of March 31, 2020. After review of the information available regarding conditions as of March 31, 2020, the Company increased its allowance for loan losses, as disclosed in Note 3, "Loans and Receivable and Revenue." The increase in volatility of foreign currency exchange rates between the U.S. dollar and Canadian dollar, as a result of COVID-19 and other factors such as oil price volatility, had a material impact on the Company's Condensed Consolidated Balance Sheet. Gross loans receivable in Canada decreased $26.5 million , or 8.7% , as a result of fluctuations in the foreign currency exchange rate from December 31, 2019 to March 31, 2020 between the U.S dollar and Canadian dollar. The effect of the COVID-19 pandemic will not be fully reflected in the Company's results of operations and overall financial performance until future periods. The extent of the impact of COVID-19 on the Company's business is highly uncertain and difficult to predict, as information is rapidly evolving with respect to the duration and severity of the pandemic. 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. Ad Astra Acquisition On January 3, 2020, the Company acquired 100% of the outstanding stock of Ad Astra, a related party, for total consideration of $14.4 million , net of cash received. Prior to the acquisition, Ad Astra was the Company's exclusive provider of third-party collection services for owned and managed loans in the U.S. that are in later-stage delinquency. Ad Astra, now a wholly-owned subsidiary, is included in the Condensed Consolidated Financial Statements. Prior to the acquisition, all costs related to Ad Astra were included in "Other costs of providing services." Following the acquisition, operating costs for Ad Astra are included within "Corporate, district and other expenses," consistent with presentation of other internal collection costs. See Note 17, "Acquisition" for further information. U.K. Segment Placed into Administration On February 25, 2019, the Company placed its U.K. segment into administration, which resulted in the treatment of the U.K. segment as discontinued operations for all periods presented. Throughout this Form 10-Q, current and prior period financial information is presented on a continuing operations basis, excluding the results and positions of the U.K. segment. See Note 15, "Discontinued Operations" for additional information. Equity Investment in Unconsolidated Entity The Company holds an equity investment in Katapult, a private lease-to-own platform for online, brick and mortar and omni-channel retailers. Katapult provides customers with payment options in store or via the Katapult link on a retailer's website. As of March 31, 2020 , the Company owned 42.5% of Katapult. The Company records the equity method investment in "Other assets" on the Condensed Consolidated Balance Sheets. See Note 8, "Fair Value Measurements" for additional detail on Katapult's fair value considerations. Use of Estimates The preparation of Condensed Consolidated Financial Statements in conformity with US GAAP requires management to make estimates and assumptions, such as those posed by COVID-19, 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 presented. 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 equity investments, goodwill and intangibles, accruals related to self-insurance, CSO liability for losses and estimated tax liabilities. Actual results may differ from those estimates. Goodwill The annual impairment review for goodwill, done on October 1, consists of performing a qualitative assessment to determine whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount as a basis for determining whether or not further testing is required. The Company may elect to bypass the qualitative assessment and proceed directly to the two-step process, for any reporting unit, in any period. The Company can resume the qualitative assessment for any reporting unit in any subsequent period. If the Company determines, on the basis of qualitative factors, that it is more likely than not that the fair value of the reporting unit is less than the carrying amount, the Company will then apply a two-step process of (i) determining the fair value of the reporting unit and (ii) comparing it to the carrying value of the net assets allocated to the reporting unit. When performing the two-step process, if the fair value of the reporting unit exceeds its carrying value, no further analysis or write-down of goodwill is required. In the event the estimated fair value of a reporting unit is less than the carrying value, the Company would recognize an impairment loss equal to such excess, which could significantly and adversely impact reported results of operations and stockholders’ equity. During the fourth quarter of 2019, the Company performed a quantitative assessment for the U.S. and Canada reporting units. Management concluded that the estimated fair values of these two reporting units were greater than their respective carrying values. Due to COVID-19, the Company determined that a goodwill impairment evaluation triggering event occurred during the three months ended March 31, 2020. After performing an interim review of impairment as of March 31, 2020, both reporting units continue to have estimated fair values greater than their respective carrying values. Refer to Note 16, "Goodwill" for further information. Recently Adopted Accounting Pronouncements ASU 2018-15 In August 2018, the FASB issued ASU 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract (“ASU 2018-15”). ASU 2018-15 requires implementation costs incurred by customers in cloud computing arrangements to be deferred over the non-cancellable term of the cloud computing arrangements plus any optional renewal periods (i) that are reasonably certain to be exercised by the customer or (ii) for which exercise of the renewal option is controlled by the cloud service provider. The Company adopted ASU 2018-15 on a prospective basis as of January 1, 2020. The adoption of ASU 2018-15 did not have a material impact on the unaudited Condensed Consolidated Financial Statements. ASU 2018-13 In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which amends ASC 820, Fair Value Measurement. ASU 2018-13 modifies the disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. The Company adopted ASU 2018-13 as of January 1, 2020, which did not have a material impact on the unaudited Condensed Consolidated Financial Statements. Recently Issued Accounting Pronouncements Not Yet Adopted 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, ASU 2019-05 in May 2019, ASU 2019-10 and 11 in November 2019, and ASU 2020-02 in February 2020. 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. ASU 2019-10 amends the mandatory effective date for ASU 2016-13. The amendments are effective for fiscal years beginning after December 15, 2022 for entities that are eligible to be defined by the SEC as a SRC, for which the Company qualifies. ASU 2019-11 provides clarity and improves the codification to ASU 2016-13. The amendments should be applied on either a prospective transition or modified-retrospective approach depending on the subtopic. As issued, 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. The Company does not expect to adopt ASU 2016-13 until at least January 1, 2021 as permitted under ASU 2019-10. The Company is currently assessing the impact the adoption of ASU 2016-13 will have on its Consolidated Financial Statements. ASU 2020-01 In January 2020, the FASB issued ASU 2020-01, Investments - Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) (ASU 2020-01). ASU 2020-01 clarifies the interaction of the accounting for equity securities under Topic 321, the accounting for equity method investments in Topic 323, and the accounting for certain forward contracts and purchased options in Topic 815. ASU 2020-01 is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The Company is currently assessing the impact the adoption of ASU 2020-01 will have on its Consolidated Financial Statements. ASU 2020-04 In March 2020, the FASB issued ASU 2020-04, “ Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ” This ASU provides temporary optional expedients and exceptions to US GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate. Entities can elect not to apply certain modification accounting requirements to contracts affected by this reference rate reform, if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. Entities can also elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met. The guidance is effective upon issuance and generally can be applied through December 31, 2022. The Company is currently assessing the impact the adoption of ASU 2020-04 will have on its Consolidated Financial Statements. ASU 2019-12 In December 2019, the FASB issued ASU 2019-12, “ Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, ” (Topic 740). The ASU intends to simplify various aspects related to accounting for income taxes and removes certain exceptions to the general principles in the standard. Additionally, the ASU clarifies and amends existing guidance to improve consistent application of its requirements. The amendments of the ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The adoption of ASU 2019-12 is not expected to have a material impact on the Company's Consolidated Financial Statements. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 3 Months Ended |
Mar. 31, 2020 | |
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 the wholly-owned VIE to collateralize debt incurred under the facility. See Note 5, "Debt" for additional details on the Non-Recourse Canada SPV facility. The Company has determined that it is the primary beneficiary of the VIE and is required to consolidate the entity. The Company includes the assets and liabilities related to the VIE in the unaudited Condensed Consolidated Balance Sheets. As required, CURO parenthetically discloses on the unaudited Condensed Consolidated Balance Sheets the VIE's assets that can only be used to settle the VIE's obligations and liabilities if the VIE's creditors have no recourse against the Company's general credit. The carrying amounts of consolidated VIE's assets and liabilities associated with the VIE subsidiary were as follows (in thousands): March 31, 2020 December 31, 2019 Assets Restricted cash $ 22,317 $ 17,427 Loans receivable less allowance for loan losses 203,837 220,067 Total Assets $ 226,154 $ 237,494 Liabilities Accounts payable and accrued liabilities $ 13,267 $ 13,462 Deferred revenue 39 46 Accrued interest 627 871 Intercompany payable 80,240 69,639 Debt 84,874 112,221 Total Liabilities $ 179,047 $ 196,239 On April 8, 2020, the Company entered into the Non-Recourse U.S. SPV Facility to provide financing for U.S. Unsecured Installment and Open-End receivables, including those generated under its technology, marketing and servicing relationship with Stride Bank. Refer to Note 19, "Subsequent Events" for additional details. |
LOANS RECEIVABLE AND REVENUE
LOANS RECEIVABLE AND REVENUE | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
LOANS RECEIVABLE AND REVENUE | LOANS RECEIVABLE AND REVENUE The COVID-19 pandemic has impacted customers, which has resulted in past-due gross loans receivable and gross combined loans receivables guaranteed by the Company, as a percentage of total gross combined loans receivable, to increase as of March 31, 2020 compared to December 31, 2019. Additionally, it has created uncertainty regarding the performance of net-charge offs over the loss-development period. The Company has maintained its historical allowance approach, but has adjusted future loss estimates for an increase in past-due gross loans receivable due to adverse market conditions at March 31, 2020 caused by COVID-19. The estimates and assumptions used to determine an appropriate allowance for loan losses and liability for losses on CSO lender-owned consumer loans are those that are available through the filing of this Form 10-Q and which are indicative of conditions occurring as of March 31, 2020. As a result of future loss estimates due to uncertainty caused by COVID-19, and the related impact to past due loans receivable as of March 31, 2020, CURO has determined an additional $12.0 million allowance for loan loss was required. The following table summarizes revenue by product (in thousands): Three Months Ended March 31, 2020 2019 Unsecured Installment $ 122,409 $ 135,778 Secured Installment 26,286 27,477 Open-End 70,982 52,869 Single-Pay 45,157 46,761 Ancillary 15,972 15,054 Total revenue (1) $ 280,806 $ 277,939 (1) Includes revenue from CSO programs of $68.1 million and $71.7 million for the three months ended March 31, 2020 and 2019, respectively. The following tables summarize loans receivable by product and the related delinquent loans receivable (in thousands): March 31, 2020 Single-Pay (1) Unsecured Installment Secured Installment Open-End Total Current loans receivable $ 54,728 $ 88,152 $ 57,284 $ 264,019 $ 464,183 Delinquent loans receivable — 34,966 15,301 49,987 100,254 Total loans receivable 54,728 123,118 72,585 314,006 564,437 Less: allowance for losses (4,693 ) (28,965 ) (9,726 ) (56,458 ) (99,842 ) Loans receivable, net $ 50,035 $ 94,153 $ 62,859 $ 257,548 $ 464,595 (1) Of the $54.7 million of Single-Pay receivables, $16.4 million relate to mandated extended payment options for certain Canada Single-Pay loans. March 31, 2020 Unsecured Installment Secured Installment Open-End Total Delinquent loans receivable 0-30 days past due $ 12,511 $ 7,168 $ 21,381 $ 41,060 31-60 days past due 9,566 3,991 12,390 25,947 61 + days past due 12,889 4,142 16,216 33,247 Total delinquent loans receivable $ 34,966 $ 15,301 $ 49,987 $ 100,254 December 31, 2019 Single-Pay (1) Unsecured Installment Secured Installment Open-End Total Current loans receivable $ 81,447 $ 117,682 $ 70,565 $ 285,452 $ 555,146 Delinquent loans receivable — 43,100 17,510 50,072 110,682 Total loans receivable 81,447 160,782 88,075 335,524 665,828 Less: allowance for losses (5,869 ) (35,587 ) (10,305 ) (55,074 ) (106,835 ) Loans receivable, net $ 75,578 $ 125,195 $ 77,770 $ 280,450 $ 558,993 (1) Of the $81.4 million of Single-Pay receivables, $22.4 million relate to mandated extended payment options for certain Canada Single-Pay loans. December 31, 2019 Unsecured Installment Secured Installment Open-End Total Delinquent loans receivable 0-30 days past due $ 15,369 $ 8,039 $ 21,823 $ 45,231 31-60 days past due 12,403 4,885 13,191 30,479 61 + days past due 15,328 4,586 15,058 34,972 Total delinquent loans receivable $ 43,100 $ 17,510 $ 50,072 $ 110,682 The following tables summarize loans guaranteed by the Company under CSO programs and the related delinquent receivables (in thousands): March 31, 2020 Unsecured Installment Secured Installment Total Current loans receivable guaranteed by the Company $ 44,865 $ 1,509 $ 46,374 Delinquent loans receivable guaranteed by the Company 9,232 311 9,543 Total loans receivable guaranteed by the Company 54,097 1,820 55,917 Less: Liability for losses on CSO lender-owned consumer loans (9,142 ) (47 ) (9,189 ) Loans receivable guaranteed by the Company, net $ 44,955 $ 1,773 $ 46,728 March 31, 2020 Unsecured Installment Secured Installment Total Delinquent loans receivable 0-30 days past due $ 7,589 $ 255 $ 7,844 31-60 days past due 939 32 971 61+ days past due 704 24 728 Total delinquent loans receivable $ 9,232 $ 311 $ 9,543 December 31, 2019 Unsecured Installment Secured Installment Total Current loans receivable guaranteed by the Company $ 61,840 $ 1,944 $ 63,784 Delinquent loans receivable guaranteed by the Company 12,477 392 12,869 Total loans receivable guaranteed by the Company 74,317 2,336 76,653 Less: Liability for losses on CSO lender-owned consumer loans (10,553 ) (70 ) (10,623 ) Loans receivable guaranteed by the Company, net $ 63,764 $ 2,266 $ 66,030 December 31, 2019 Unsecured Installment Secured Installment Total Delinquent loans receivable 0-30 days past due $ 10,392 $ 326 $ 10,718 31-60 days past due 1,256 40 1,296 61 + days past due 829 26 855 Total delinquent loans receivable $ 12,477 $ 392 $ 12,869 The following table summarizes activity in the allowance for loan losses (in thousands): Three Months Ended March 31, 2020 Single-Pay Unsecured Installment Secured Installment Open-End Other Total Balance, beginning of period $ 5,869 $ 35,587 $ 10,305 $ 55,074 $ — $ 106,835 Charge-offs (40,521 ) (38,558 ) (13,110 ) (43,509 ) (1,279 ) (136,977 ) Recoveries 30,004 5,783 2,909 6,411 575 45,682 Net charge-offs (10,517 ) (32,775 ) (10,201 ) (37,098 ) (704 ) (91,295 ) Provision for losses 9,639 26,182 9,622 40,991 704 87,138 Effect of foreign currency translation (298 ) (29 ) — (2,509 ) — (2,836 ) Balance, end of period $ 4,693 $ 28,965 $ 9,726 $ 56,458 $ — $ 99,842 Allowance for loan losses as a percentage of gross loan receivables 8.6 % 23.5 % 13.4 % 18.0 % N/A 17.7 % The following table summarizes activity in the liability for losses on CSO lender-owned consumer loans (in thousands): Three Months Ended March 31, 2020 Unsecured Installment Secured Installment Total Balance, beginning of period $ 10,553 $ 70 $ 10,623 Charge-offs (41,511 ) (862 ) (42,373 ) Recoveries 13,762 779 14,541 Net charge-offs (27,749 ) (83 ) (27,832 ) Provision for losses 26,338 60 26,398 Balance, end of period $ 9,142 $ 47 $ 9,189 The following table summarizes activity in the allowance for loan losses and the liability for losses on CSO lender-owned consumer loans in total (in thousands): Three Months Ended March 31, 2020 Single-Pay Unsecured Installment Secured Installment Open-End Other Total Balance, beginning of period $ 5,869 $ 46,140 $ 10,375 $ 55,074 $ — $ 117,458 Charge-offs (40,521 ) (80,069 ) (13,972 ) (43,509 ) (1,279 ) (179,350 ) Recoveries 30,004 19,545 3,688 6,411 575 60,223 Net charge-offs (10,517 ) (60,524 ) (10,284 ) (37,098 ) (704 ) (119,127 ) Provision for losses 9,639 52,520 9,682 40,991 704 113,536 Effect of foreign currency translation (298 ) (29 ) — (2,509 ) — (2,836 ) Balance, end of period $ 4,693 $ 38,107 $ 9,773 $ 56,458 $ — $ 109,031 The following table summarizes activity in the allowance for loan losses (in thousands): Three Months Ended March 31, 2019 Single-Pay Unsecured Installment Secured Installment Open-End Other Total Balance, beginning of period $ 4,189 $ 37,716 $ 12,191 $ 19,901 $ — $ 73,997 Charge-offs (36,521 ) (44,237 ) (12,671 ) (3,638 ) (1,351 ) (98,418 ) Recoveries 27,911 6,318 3,123 5,159 898 43,409 Net charge-offs (8,610 ) (37,919 ) (9,548 ) 1,521 (453 ) (55,009 ) Provision for losses 8,268 33,845 7,153 25,317 453 75,036 Effect of foreign currency translation 50 24 — 224 — 298 Balance, end of period $ 3,897 $ 33,666 $ 9,796 $ 46,963 $ — $ 94,322 Allowance for loan losses as a percentage of gross loan receivables 5.6 % 20.8 % 12.1 % 19.5 % N/A 17.0 % The following table summarizes activity in the liability for losses on CSO lender-owned consumer loans (in thousands): Three Months Ended March 31, 2019 Unsecured Installment Secured Installment Total Balance, beginning of period $ 11,582 $ 425 $ 12,007 Charge-offs (40,980 ) (1,076 ) (42,056 ) Recoveries 10,560 802 11,362 Net charge-offs (30,420 ) (274 ) (30,694 ) Provision for losses 27,422 (73 ) 27,349 Balance, end of period $ 8,584 $ 78 $ 8,662 The following table summarizes activity in the allowance for loan losses and the liability for losses on CSO lender-owned consumer loans, a non-GAAP metric, in total (in thousands): Three Months Ended March 31, 2019 Single-Pay Unsecured Installment Secured Installment Open-End Other Total Balance, beginning of period $ 4,189 $ 49,298 $ 12,616 $ 19,901 $ — $ 86,004 Charge-offs (36,521 ) (85,217 ) (13,747 ) (3,638 ) (1,351 ) (140,474 ) Recoveries 27,911 16,878 3,925 5,159 898 54,771 Net charge-offs (8,610 ) (68,339 ) (9,822 ) 1,521 (453 ) (85,703 ) Provision for losses 8,268 61,267 7,080 25,317 453 102,385 Effect of foreign currency translation 50 24 — 224 — 298 Balance, end of period $ 3,897 $ 42,250 $ 9,874 $ 46,963 $ — $ 102,984 |
CREDIT SERVICES ORGANIZATION
CREDIT SERVICES ORGANIZATION | 3 Months Ended |
Mar. 31, 2020 | |
Guarantees [Abstract] | |
CREDIT SERVICES ORGANIZATION | CREDIT SERVICES ORGANIZATION The CSO fee receivables under CSO programs were $6.8 million and $14.7 million at March 31, 2020 and December 31, 2019 , respectively, and are reflected in "Prepaid expenses and other" in the unaudited Condensed Consolidated Balance Sheets. 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 up to six months. See the 2019 Form 10-K for further details of the Company's accounting policy. As of March 31, 2020 and December 31, 2019 , the incremental maximum amount payable under all such guarantees was $45.7 million and $62.7 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 $9.2 million and $10.6 million at March 31, 2020 and December 31, 2019 , respectively. The Company placed $5.7 million and $6.2 million in collateral accounts for the benefit of lenders at March 31, 2020 and December 31, 2019 , respectively, which is reflected in "Prepaid expenses and other" in the unaudited 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. Deferred revenue associated with the CSO program was immaterial as of March 31, 2020 and December 31, 2019 and there were no costs to obtain, or costs to fulfill, capitalized under the program. See Note 3, "Loans Receivable and Revenue" for additional information related to loan balances and the revenue recognized under the program. |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Debt consisted of the following (in thousands): March 31, 2020 December 31, 2019 8.25% Senior Secured Notes (due 2025) $ 678,727 $ 678,323 Non-Recourse Canada SPV Facility 84,724 112,221 Senior Revolver 25,000 — Debt $ 788,451 $ 790,544 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. 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 $11.3 million , net of amortization, is included in the unaudited Condensed Consolidated Balance Sheets as a component of "Debt." These costs are amortized over the term of the 8.25% Senior Secured Notes as a component of interest expense. The Company used the proceeds of this issuance (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, 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. 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 September 2, 2023. As of March 31, 2020 , outstanding borrowings under the Non-Recourse Canada SPV Facility were $84.7 million , net of deferred financing costs of $2.6 million . For further information on the Non-Recourse Canada SPV, refer to Note 2, "Variable Interest Entities." Senior Revolver On September 1, 2017, the Company entered into the Senior Revolver with $25.0 million of capacity. 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 has been extended to June 30, 2021. The Senior Revolver accrues interest at one -month LIBOR plus 5.00% (subject to a 5% overall minimum). The terms of the Senior Revolver also 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 had an outstanding balance of $25.0 million at March 31, 2020 . 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. Cash Money Revolving Credit Facility Cash Money Cheque Cashing, Inc., a Canadian subsidiary ("Cash Money"), maintains a C $10.0 million revolving credit facility with Royal Bank of Canada (the "Cash Money Revolving Credit Facility"), which provides short-term liquidity required to meet the working capital needs of the Company's Canadian operations. Aggregate draws under the revolving credit facility are limited to the lesser of: (i) the borrowing base, which is defined as a percentage of cash, deposits in transit and accounts receivable, and (ii) C $10.0 million . As of March 31, 2020 , the borrowing capacity under the Cash Money Revolving Credit Facility, which was C$9.9 million , net of C $0.1 million in 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 March 31, 2020 and December 31, 2019. Non-Recourse U.S. SPV Facility Refer to Note 19, "Subsequent Events" for additional information regarding a new Asset-Backed Revolving Credit Facility entered into on April 8, 2020. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [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, RSUs, stock appreciation rights, performance awards and other awards that may be settled in or based on 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 closing market price of 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. Grants of market-based RSUs are valued using the Monte Carlo simulation pricing model. The market-based RSUs vest after three years if the Company's total stockholder return over the three -year performance period meets a specified target relative to other companies in its selected peer group. Expense recognition for the market-based awards occurs over the service period using the straight-line method. 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 activity of time-based and market-based unvested RSUs as of March 31, 2020 and changes during the three months ended March 31, 2020 are presented in the following table: Number of RSUs Time-Based Market-Based Weighted Average Grant Date Fair Value per Share December 31, 2019 1,061,753 394,861 $ 11.47 Granted 571,773 368,539 10.55 Vested (197,859 ) — 11.39 Forfeited (12,756 ) (2,613 ) 12.07 March 31, 2020 1,422,911 760,787 $ 11.08 Share-based compensation expense for the three months ended March 31, 2020 and 2019 , which includes compensation costs from stock options and RSUs, was $3.2 million and $2.2 million , respectively, and is included in the unaudited Condensed Consolidated Statements of Operations as a component of "Corporate, district and other expenses." As of March 31, 2020 , there was $19.6 million of total unrecognized compensation cost related to stock options and RSUs, of which $13.8 million related to time-based RSUs and $5.6 million related to market-based RSUs. Total unrecognized compensation costs will be recognized over a weighted-average period of 2.1 years . |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company's effective income tax rate was 5.1% and 25.9% for the three months ended March 31, 2020 and 2019 , respectively. The decrease in effective income tax rate was primarily due to a tax benefit from the CARES Act, which was enacted by the U.S. Federal government on March 27, 2020 in response to the COVID-19 pandemic. The CARES Act, among other things, allows NOLs incurred in 2018, 2019 and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously-paid Federal income taxes. In the first quarter of 2020, the Company recorded an income tax benefit of $9.1 million related to the carry-back NOL from tax years 2018 and 2019, which will offset income earned in years prior to tax reform and generate a refund of previously paid taxes at 35%. In addition, losses from the Company's equity method investment in Katapult are not tax deductible, thus increasing the March 31, 2020 effective tax rate. 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 $153.8 million were distributed to the U.S., the Company would be subject to Canadian withholding taxes of an estimated $7.7 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. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS 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 Carried at Fair Value The table below presents the assets and liabilities that were carried at fair value on the unaudited Condensed Consolidated Balance Sheets at March 31, 2020 (in thousands): Estimated Fair Value Carrying Value March 31, Level 1 Level 2 Level 3 Total Financial assets: Cash Surrender Value of Life Insurance $ 5,696 $ 5,696 $ — $ — $ 5,696 Financial liabilities: Non-qualified deferred compensation plan $ 3,818 $ 3,818 $ — $ — $ 3,818 The table below presents the assets and liabilities that were carried at fair value on the unaudited Condensed Consolidated Balance Sheets at December 31, 2019 (in thousands): Estimated Fair Value Carrying Value December 31, Level 1 Level 2 Level 3 Total Financial assets: Cash Surrender Value of Life Insurance $ 6,171 $ 6,171 $ — $ — $ 6,171 Financial liabilities: Non-qualified deferred compensation plan $ 4,666 $ 4,666 $ — $ — $ 4,666 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 unaudited Condensed Consolidated Balance Sheets at March 31, 2020 (in thousands): Estimated Fair Value Carrying Value March 31, Level 1 Level 2 Level 3 Total Financial assets: Cash $ 138,714 $ 138,714 $ — $ — $ 138,714 Restricted cash 41,527 41,527 — — 41,527 Loans receivable, net 464,595 — — 464,595 464,595 Equity method investment 8,450 — — 8,450 8,450 Financial liabilities: Liability for losses on CSO lender-owned consumer loans $ 9,189 $ — $ — $ 9,189 $ 9,189 8.25% Senior Secured Notes 678,727 — 478,503 — 478,503 Non-Recourse Canada SPV facility 84,724 — — 87,365 87,365 Senior Revolver 25,000 — — 25,000 25,000 The table below presents the assets and liabilities that were not carried at fair value on the unaudited Condensed Consolidated Balance Sheets at December 31, 2019 (in thousands): Estimated Fair Value Carrying Value December 31, Level 1 Level 2 Level 3 Total Financial assets: Cash $ 75,242 $ 75,242 $ — $ — $ 75,242 Restricted cash 34,779 34,779 — — 34,779 Loans receivable, net 558,993 — — 558,993 558,993 Equity method investment 10,068 — — 10,068 10,068 Financial liabilities: Liability for losses on CSO lender-owned consumer loans $ 10,623 $ — $ — $ 10,623 $ 10,623 8.25% Senior Secured Notes 678,323 — 596,924 — 596,924 Non-Recourse Canada SPV facility 112,221 — — 115,243 115,243 Loans receivable are carried on the unaudited Condensed Consolidated Balance Sheets net of the Allowance for loan losses. The unobservable inputs used to calculate the carrying values include quantitative factors, such as current 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. Refer to Note 3, "Loans Receivable and Revenue" for additional information. During 2019, Katapult completed an incremental equity 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 was considered indicative of the fair value of shares in Katapult. Accordingly, the Company recognized a $3.7 million loss on its investment to adjust it to market value. As of March 31, 2020 , the Company owned approximately 42.5% of the outstanding shares of Katapult. 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. Refer to Note 3, "Loans Receivable and Revenue" for additional information. The 8.25% Senior Secured Notes fair value disclosure was based on broker quotations. The fair values of the Non-Recourse Canada SPV facility and the Senior Revolver were based on the cash needed for their respective final settlements. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY The following table summarizes the changes in stockholders' equity for the three months ended March 31, 2020 and 2019 (in thousands): Common Stock Treasury Stock Paid-in capital Retained Earnings (Deficit) AOCI (1) Total Stockholders' Equity Shares Outstanding Par Value Balances at December 31, 2019 41,156,224 $ 9 $ (72,343 ) $ 68,087 $ 93,423 $ (38,663 ) $ 50,513 Net income from continuing operations — — — — 36,013 — 36,013 Net income from discontinued operations — — — — 292 — 292 Foreign currency translation adjustment — — — — — (22,193 ) (22,193 ) Dividends — — — — (2,256 ) — — (2,256 ) Share based compensation expense — — — 3,194 — — 3,194 Proceeds from exercise of stock options 42,094 — — 126 — — 126 Repurchase of common stock (540,762 ) — (5,509 ) — — — (5,509 ) Common stock issued for RSU's vesting, net of shares withheld and withholding paid for employee taxes 121,891 — — (609 ) — — (609 ) Balances at March 31, 2020 40,779,447 $ 9 $ (77,852 ) $ 70,798 $ 127,472 $ (60,856 ) $ 59,571 (1) Accumulated other comprehensive income (loss) Common Stock Treasury Stock Paid-in capital Retained Earnings (Deficit) AOCI (1) Total Stockholders' Equity (Deficit) Shares Outstanding Par Value Balances at December 31, 2018 46,412,231 $ 9 $ — $ 60,015 $ (18,065 ) $ (61,060 ) $ (19,101 ) Net income from continuing operations — — — — 28,673 — 28,673 Net income from discontinued operations — — — — 8,375 — 8,375 Foreign currency translation adjustment — — — — — 16,695 16,695 Share based compensation expense — — — 2,172 — — 2,172 Proceeds from exercise of stock options 7,888 — — 40 — — 40 Common stock issued for RSU's vesting, net of shares withheld and withholding paid for employee taxes 11,170 — — (110 ) — — (110 ) Balances at March 31, 2019 46,431,289 $ 9 $ — $ 62,117 $ 18,983 $ (44,365 ) $ 36,744 (1) Accumulated other comprehensive income (loss) Dividend On February 5, 2020, the Company's Board of Directors announced the initiation of a dividend program and declared its first cash dividend of $0.055 per share. A dividend of $2.2 million was paid on March 2, 2020 to stockholders of record as of the close of business on February 18, 2020. Subsequently, on April 30, 2020, the Company's Board of Directors declared a dividend. See Note 19, "Subsequent Events" for more information. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2020 | |
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 2020 2019 Net income from continuing operations $ 36,013 $ 28,673 Net income from discontinued operations, net of tax 292 8,375 Net income $ 36,305 $ 37,048 Weighted average common shares - basic 40,817 46,424 Dilutive effect of stock options and restricted stock units 1,075 895 Weighted average common shares - diluted 41,892 47,319 Basic earnings per share: Continuing operations $ 0.88 $ 0.62 Discontinued operations 0.01 0.18 Basic earnings per share $ 0.89 $ 0.80 Diluted earnings per share: Continuing operations $ 0.86 $ 0.61 Discontinued operations 0.01 0.18 Diluted earnings per share $ 0.87 $ 0.79 Potential shares of common stock that would have the effect of increasing diluted earnings per share or decreasing diluted loss per share are considered to be anti-dilutive and as such, these shares are not included in calculating "Diluted earnings per share." For the three months ended March 31, 2020 and March 31, 2019 , there were 1.3 million and 1.4 million , respectively, of potential shares of common stock excluded from the calculation of Diluted earnings per share because their effect was anti-dilutive. The Company utilizes the "control number" concept in the computation of Diluted earnings per share to determine whether potential common stock instruments are dilutive. The control number used is income from continuing operations. The control number concept requires that the same number of potentially dilutive securities applied in computing Diluted earnings per share from continuing operations be applied to all other categories of income or loss, regardless of their anti-dilutive effect on such categories. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION The following table provides supplemental cash flow information (in thousands): Three Months Ended 2020 2019 Cash paid for: Interest $ 31,184 $ 32,195 Income taxes, net of refunds 1,065 1,456 Non-cash investing activities: Property and equipment accrued in accounts payable $ 869 $ 349 |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2020 | |
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, including revenues, net revenue, gross margin, segment operating income and other items. U.S. As of March 31, 2020 , the Company operated a total of 214 U.S. retail locations and has an online presence in 27 states. The Company provides Single-Pay loans, Installment loans and Open-End loans, vehicle title loans, check cashing, money transfer services, reloadable prepaid debit cards and a number of other ancillary financial products and services to its customers in the U.S. As disclosed in Note 17, "Acquisition," the acquisition of Ad Astra closed during the three months ended March 31, 2020. The results of Ad Astra are included within the U.S. reporting segment. Canada. As of March 31, 2020 , the Company operated a total of 202 stores across seven Canadian provinces and territories and has an online presence in five provinces. The Company provides Single-Pay loans, Installment loans and Open-End loans, check cashing, money transfer services, foreign currency exchange, reloadable prepaid debit cards and a number of other ancillary financial products and services to its customers in Canada. The following table illustrates summarized financial information concerning reportable segments (in thousands): Three Months Ended 2020 2019 Revenues by segment: (1) U.S. $ 221,768 $ 226,119 Canada 59,038 51,820 Consolidated revenue $ 280,806 $ 277,939 Net revenues by segment: U.S. $ 135,727 $ 141,139 Canada 31,543 34,415 Consolidated net revenue $ 167,270 $ 175,554 Gross margin by segment: U.S. $ 87,540 $ 89,803 Canada 12,159 15,694 Consolidated gross margin $ 99,699 $ 105,497 Segment operating income (loss): U.S. $ 33,426 $ 31,195 Canada 4,524 7,524 Consolidated operating profit $ 37,950 $ 38,719 Expenditures for long-lived assets by segment: U.S. $ 4,280 $ 2,430 Canada 553 689 Consolidated expenditures for long-lived assets $ 4,833 $ 3,119 (1) For revenue by product, see Note 3, "Loans Receivable and Revenue." The following table provides the proportion of gross loans receivable by segment (in thousands): March 31, December 31, U.S. $ 288,127 $ 363,453 Canada 276,310 302,375 Total gross loans receivable $ 564,437 $ 665,828 The following table represents the Company's 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 (in thousands): March 31, 2020 December 31, 2019 U.S. $ 42,536 $ 43,618 Canada 24,251 27,193 Total net long-lived assets $ 66,787 $ 70,811 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. |
COMMITMENTS AND CONTENGENCIES
COMMITMENTS AND CONTENGENCIES | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTENGENCIES | COMMITMENTS AND CONTENGENCIES 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. During the first quarter of 2019, the Company 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 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 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 from time-to-time in the ordinary course of business. Certain of these matters may be covered to an extent by insurance. While it is difficult to predict the outcome of any particular proceeding, the Company does not believe the result of any of these matters will have a material adverse effect on the Company's business, results of operations or financial condition. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | LEASES Operating leases entered into by the Company are primarily for retail stores in certain U.S. states and Canadian provinces. Leases classified as finance are immaterial to the Company as of March 31, 2020 . Operating leases expire at various times through 2032. 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" on the Consolidated Balance Sheets. Typically, a contract is or contains a lease if it conveys the right to control the use of an identified property, plant or equipment (an identified asset) for a period of time in exchange for consideration. To determine whether a contract conveys the right to control the use of an identified asset for a period of time, an entity shall assess whether, throughout the period of use, the customer has both (i) the right to obtain substantially all of the economic benefits from use of the identified asset and (ii) the right to direct the use of the identified asset. If the customer has the right to control the use of an identified asset for only a portion of the term of the contract, the contract contains a lease for that portion of the term. The Company recognizes ROU assets and lease liabilities based on the present value of lease payments over the lease term at commencement date. The rate implicit in the Company's leases typically are not readily determinable. As a result, the Company uses its estimated incremental borrowing rate, as allowed by ASC 842, in determining the present value of lease payments. The incremental borrowing rate is based on internal and external information available at the lease commencement date and is determined using a portfolio approach (i.e. using the weighted average terms of all leases in the Company's portfolio). This rate is the theoretical rate the Company would pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term as that of the portfolio. The Company uses quoted interest rates obtained from financial institutions as an input, adjusted for Company specific factors, to derive the incremental borrowing rate as the discount rate for the leases. As new leases are added each period, the Company evaluates whether the incremental borrowing rate has changed. If the incremental borrowing rate has changed, the Company will apply the rate to new leases if not doing so would result in a material difference to the ROU asset and lease liability presented on the balance sheet. The majority of the leases have an original term of five years with two five -year renewal options. The consumer price index is used in determining future lease payments and for purposes of calculating operating lease liabilities, lease terms 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 certain leases also require payment of period costs, including maintenance, insurance and property taxes. Some of the leases are with related parties and have terms similar to the non-related party leases. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. The following table summarizes the operating lease costs and other information for the three months ended March 31, 2020 and March 31, 2019 (in thousands): Three Months Ended March 31, 2020 2019 Operating lease costs: Third-Party $ 7,626 $ 7,621 Related-Party 864 847 Total operating lease costs $ 8,490 $ 8,468 Operating cash flow - Operating leases $ 8,433 $ 8,615 New ROU assets - Operating leases $ 5,647 $ — Weighted average remaining lease term - Operating leases 6.3 years 6.1 years Weighted average discount rate - Operating leases 10.3 % 10.3 % The following table summarizes the aggregate operating lease maturities that the Company is contractually obligated to make under operating leases as of March 31, 2020 (in thousands): Third-Party Related-Party Total Remainder of 2020 $ 22,437 $ 2,809 $ 25,246 2021 27,464 3,767 31,231 2022 24,640 3,661 28,301 2023 19,995 1,316 21,311 2024 15,343 962 16,305 2025 11,178 861 12,039 Thereafter 30,416 2,655 33,071 Total 151,473 16,031 167,504 Less: Imputed interest (41,963 ) (3,826 ) (45,789 ) Operating lease liabilities $ 109,510 $ 12,205 $ 121,715 As a result of the COVID-19 pandemic that began during the three months ended March 31, 2020, CURO reviewed ROU assets for indicators of impairment. Under US GAAP, the model used to review ROU assets for impairment is consistent to that used for other long-lived assets, such as fixed assets. In applying the appropriate guidance, the Company noted there was no indicators of impairment as of March 31, 2020 related to its ROU assets. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 3 Months Ended |
Mar. 31, 2020 | |
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. The following table presents the results of operations of the U.K. Subsidiaries, which meet the criteria of Discontinued Operations and, therefore, are excluded from the Company's results of continuing operations (in thousands): Three Months Ended 2020 2019 (1) Revenue $ — $ 6,957 Provision for losses — 1,703 Net revenue — 5,254 Cost of providing services Office — 246 Other costs of providing services — 61 Advertising — 775 Total cost of providing services — 1,082 Gross margin — 4,172 Operating (income) expense Corporate, district and other expenses — 3,810 Interest income — (4 ) (Gain) loss on disposition (390 ) 39,414 Total operating (income) expense (390 ) 43,220 Pre-tax income (loss) from operations of discontinued operations 390 (39,048 ) Income tax expense (benefit) related to disposition 98 (47,423 ) Net income from discontinued operations $ 292 $ 8,375 (1) Includes U.K. Subsidiaries financial results from January 1, 2019 to February 25, 2019. Revenue and expenses related to discontinued operations included activity prior to the deconsolidation of the U.K. subsidiaries effective February 25, 2019. For the three months ended March 31, 2019, "(Gain) 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 $47.4 million as of March 31, 2019, to be applied against future income tax obligations. Subsequently, in 2019, the Company revised the estimated U.S. Federal and state income tax benefit to $46.6 million . During the three months ended March 31, 2020, the Company received $0.4 million of disbursements from the Administrator related to the wind-down of the U.K. Subsidiaries. As of March 31, 2020 and December 31, 2019 , the unaudited Condensed Consolidated Balance Sheets were not impacted by the U.K. Subsidiaries as all balances were written off when the U.K. segment entered into administration during the first quarter of 2019. The following table presents cash flows of the U.K. Subsidiaries (in thousands): Three Months Ended 2020 2019 (1) Net cash provided by (used in) discontinued operating activities $ 390 $ (504 ) Net cash used in discontinued investing activities — (14,213 ) Net cash used in discontinued financing activities — — (1) Includes U.K. Subsidiaries financial results from January 1, 2019 to February 25, 2019. |
GOODWILL
GOODWILL | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL The change in the carrying amount of Goodwill by operating segment for the three months ended March 31, 2020 was as follows (in thousands): U.S. Canada Total Goodwill at December 31, 2019 $ 91,131 $ 29,478 $ 120,609 Acquisition (Note 17) 14,791 — 14,791 Foreign currency translation — (2,575 ) (2,575 ) Goodwill at March 31, 2020 105,922 26,903 132,825 The Company tests goodwill at least annually for impairment (the Company has elected to annually test for potential impairment of goodwill on October 1) and more frequently if indicators are present or changes in circumstances suggest that impairment may exist. The indicators include, among others, declines in sales, earning or cash flows or the development of a material adverse change in business climate. The Company assesses goodwill for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment, referred to as a reporting unit. See Note 1, "Summary of Significant Accounting Policies and Nature of Operations" of the 2019 Form 10-K filed with the SEC on March 9, 2020, for additional information on the Company's policy for assessing goodwill for impairment. U.S. and Canada Reporting Units During the three months ended March 31, 2020, the Company determined a triggering event had occurred for the U.S. and Canada reporting units as a result of COVID-19. The global crisis caused by the pandemic drove significant declines in macroeconomic market conditions and altered the assumptions used in the Company's forecast for both reporting units. After performing an interim review, the Company concluded that the fair value of each reporting unit was in excess of its respective carrying value. Ad Astra Acquisition The Company completed the acquisition of Ad Astra on January 3, 2020. Goodwill of $14.8 million was recorded on the U.S. reporting unit during the three months ended March 31, 2020, based on the excess of the purchase price of the business combination over the fair value of the acquired net assets. See Note 17, "Acquisition" for more information related to the business combination. |
ACQUISITION
ACQUISITION | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
ACQUISITION | ACQUISITION On January 3, 2020, the Company acquired 100% of the outstanding stock of Ad Astra, a related party, for total consideration of $14.4 million , net of cash received. Prior to the acquisition, Ad Astra was the Company's exclusive provider of third-party collection services for owned and managed loans in the U.S. that are in later-stage delinquency. The Company began consolidating the financial results of this acquisition in the unaudited Condensed Consolidated Financial Statements on January 3, 2020. For the three months ended March 31, 2019, prior to the acquisition, $4.7 million of costs related to Ad Astra were included in "Other costs of providing services." Subsequent to the acquisition, operating costs for Ad Astra are included within "Corporate, district and other expenses," consistent with presentation of other internal collection costs. Ad Astra incurred $3.5 million of operating expense during the three months ended March 31, 2020. The transaction has been accounted for using the acquisition method of accounting, which requires that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. The Company was the acquirer for purposes of accounting for the business combination. The values assigned to the assets acquired and liabilities assumed are based on their estimates of fair value available as of March 31, 2020. As of March 31, 2020, the Company completed the determination of the fair values of the acquired identifiable assets and liabilities based on the information available. The following table summarizes the allocation of the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: (in thousands) Amounts acquired on January 3, 2020 Cash consideration transferred: $ 17,811 Cash and cash equivalents 3,360 Accounts receivable 465 Property and equipment 358 Intangible assets 1,101 Goodwill 14,791 Operating lease asset 235 Accounts payable and accrued liabilities (2,264 ) Operating lease liabilities (235 ) Total $ 17,811 Goodwill of $14.8 million represents the excess over the fair value of the net tangible and intangible assets acquired. Goodwill is not deductible for income tax purposes. |
SHARE REPURCHASE PROGRAM
SHARE REPURCHASE PROGRAM | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
SHARE REPURCHASE PROGRAM | SHARE REPURCHASE PROGRAM In February 2020, the Company's Board of Directors authorized a new share repurchase program for up to $25.0 million of its common stock. Under the program, shares were repurchased in the open market or in privately negotiated transactions at times and amounts considered appropriate by CURO. Due to uncertainty caused by COVID-19, the Board suspended the program on March 15, 2020. There were no material purchases in the program during the three months ended March 31, 2020 . 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, was completed in February 2020. Under this program, the Company repurchased 455,255 shares of its common stock at an average price of $10.45 per share for total consideration of $4.8 million during the three months ended March 31, 2020 . Purchases under the program were 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 are available for use in connection with equity plans or other corporate purposes. Separately, in August 2019, the Company entered into a Share Repurchase Agreement (the “Share Repurchase Agreement”) with FFL, a related party. Pursuant to the Share Repurchase Agreement, the Company repurchased 2,000,000 shares of its common stock, par value $0.001 per share, owned by FFL, in a private transaction at a purchase price equal to $13.55 per share of Common Stock. The purchase price was determined by using the Company's closing common stock price on August 29, 2019 of $13.97 , less a discount of 3.0% . This transaction occurred outside of the share repurchase program authorized in April 2019. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS New Non-Recourse U.S. SPV Facility On April 8, 2020, the Company entered into a Non-Recourse U.S. SPV Facility to provide financing for U.S. Unsecured Installment and Open-End receivables, including those generated under its technology, marketing and servicing relationship with Stride Bank. The Non-Recourse U.S. SPV Facility provides for $100.0 million of borrowing capacity, subject to the borrowing base of eligible collateral and certain other conditions. Concurrent with the closing, the Company drew $35.2 million on the facility. Dividend On April 30, 2020, the Company's Board of Directors declared a dividend under its previously announced dividend program, of $0.055 per share to be paid on May 27, 2020 to stockholders of record as of the close of business on May 13, 2020. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS Nature of Operations and Basis of Presentation The terms “CURO" and the “Company” refer to CURO Group Holdings Corp. and its wholly-owned subsidiaries as a consolidated entity, except where otherwise stated. CURO is a growth-oriented, technology-enabled, highly-diversified consumer finance company serving a wide range of underbanked consumers in the U.S., Canada and, through February 25, 2019, the U.K. The Company has prepared the accompanying unaudited Condensed Consolidated Financial Statements in accordance with US GAAP, and with the accounting policies described in its 2019 Form 10-K filed with the SEC on March 9, 2020. Interim results of operations are not necessarily indicative of the results that might be expected for future interim periods or for the year ending December 31, 2020 . 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, the Company qualifies as an SRC as defined by the SEC, which allows registrants to report information under scaled disclosure requirements. SRC status is determined on an annual basis as of the last business day of the most recently completed second fiscal quarter. Under these rules, the Company met the definition of an SRC as of June 30, 2019, and it will reevaluate as of June 30, 2020. |
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, such as those posed by COVID-19, 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 presented. 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 equity investments, goodwill and intangibles, accruals related to self-insurance, CSO liability for losses and estimated tax liabilities. Actual results may differ from those estimates. |
Goodwill | Goodwill The annual impairment review for goodwill, done on October 1, consists of performing a qualitative assessment to determine whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount as a basis for determining whether or not further testing is required. The Company may elect to bypass the qualitative assessment and proceed directly to the two-step process, for any reporting unit, in any period. The Company can resume the qualitative assessment for any reporting unit in any subsequent period. If the Company determines, on the basis of qualitative factors, that it is more likely than not that the fair value of the reporting unit is less than the carrying amount, the Company will then apply a two-step process of (i) determining the fair value of the reporting unit and (ii) comparing it to the carrying value of the net assets allocated to the reporting unit. When performing the two-step process, if the fair value of the reporting unit exceeds its carrying value, no further analysis or write-down of goodwill is required. In the event the estimated fair value of a reporting unit is less than the carrying value, the Company would recognize an impairment loss equal to such excess, which could significantly and adversely impact reported results of operations and stockholders’ equity. During the fourth quarter of 2019, the Company performed a quantitative assessment for the U.S. and Canada reporting units. Management concluded that the estimated fair values of these two reporting units were greater than their respective carrying values. Due to COVID-19, the Company determined that a goodwill impairment evaluation triggering event occurred during the three months ended March 31, 2020. After performing an interim review of impairment as of March 31, 2020, both reporting units continue to have estimated fair values greater than their respective carrying values. Refer to Note 16, "Goodwill" for further information. |
Recently Adopted and Issued Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements ASU 2018-15 In August 2018, the FASB issued ASU 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract (“ASU 2018-15”). ASU 2018-15 requires implementation costs incurred by customers in cloud computing arrangements to be deferred over the non-cancellable term of the cloud computing arrangements plus any optional renewal periods (i) that are reasonably certain to be exercised by the customer or (ii) for which exercise of the renewal option is controlled by the cloud service provider. The Company adopted ASU 2018-15 on a prospective basis as of January 1, 2020. The adoption of ASU 2018-15 did not have a material impact on the unaudited Condensed Consolidated Financial Statements. ASU 2018-13 In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which amends ASC 820, Fair Value Measurement. ASU 2018-13 modifies the disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. The Company adopted ASU 2018-13 as of January 1, 2020, which did not have a material impact on the unaudited Condensed Consolidated Financial Statements. Recently Issued Accounting Pronouncements Not Yet Adopted 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, ASU 2019-05 in May 2019, ASU 2019-10 and 11 in November 2019, and ASU 2020-02 in February 2020. 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. ASU 2019-10 amends the mandatory effective date for ASU 2016-13. The amendments are effective for fiscal years beginning after December 15, 2022 for entities that are eligible to be defined by the SEC as a SRC, for which the Company qualifies. ASU 2019-11 provides clarity and improves the codification to ASU 2016-13. The amendments should be applied on either a prospective transition or modified-retrospective approach depending on the subtopic. As issued, 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. The Company does not expect to adopt ASU 2016-13 until at least January 1, 2021 as permitted under ASU 2019-10. The Company is currently assessing the impact the adoption of ASU 2016-13 will have on its Consolidated Financial Statements. ASU 2020-01 In January 2020, the FASB issued ASU 2020-01, Investments - Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) (ASU 2020-01). ASU 2020-01 clarifies the interaction of the accounting for equity securities under Topic 321, the accounting for equity method investments in Topic 323, and the accounting for certain forward contracts and purchased options in Topic 815. ASU 2020-01 is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The Company is currently assessing the impact the adoption of ASU 2020-01 will have on its Consolidated Financial Statements. ASU 2020-04 In March 2020, the FASB issued ASU 2020-04, “ Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ” This ASU provides temporary optional expedients and exceptions to US GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate. Entities can elect not to apply certain modification accounting requirements to contracts affected by this reference rate reform, if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. Entities can also elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met. The guidance is effective upon issuance and generally can be applied through December 31, 2022. The Company is currently assessing the impact the adoption of ASU 2020-04 will have on its Consolidated Financial Statements. ASU 2019-12 In December 2019, the FASB issued ASU 2019-12, “ Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, ” (Topic 740). The ASU intends to simplify various aspects related to accounting for income taxes and removes certain exceptions to the general principles in the standard. Additionally, the ASU clarifies and amends existing guidance to improve consistent application of its requirements. The amendments of the ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The adoption of ASU 2019-12 is not expected to have a material impact on the Company's Consolidated Financial Statements. |
Variable Interest Entity | The Company has determined that it is the primary beneficiary of the VIE and is required to consolidate the entity. The Company includes the assets and liabilities related to the VIE in the unaudited Condensed Consolidated Balance Sheets. As required, CURO parenthetically discloses on the unaudited Condensed Consolidated Balance Sheets the VIE's assets that can only be used to settle the VIE's obligations and liabilities if the VIE's 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. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of the Carrying Amounts of Consolidated VIEs' Assets and Liabilities | The carrying amounts of consolidated VIE's assets and liabilities associated with the VIE subsidiary were as follows (in thousands): March 31, 2020 December 31, 2019 Assets Restricted cash $ 22,317 $ 17,427 Loans receivable less allowance for loan losses 203,837 220,067 Total Assets $ 226,154 $ 237,494 Liabilities Accounts payable and accrued liabilities $ 13,267 $ 13,462 Deferred revenue 39 46 Accrued interest 627 871 Intercompany payable 80,240 69,639 Debt 84,874 112,221 Total Liabilities $ 179,047 $ 196,239 On April 8, 2020, the Company entered into the Non-Recourse U.S. SPV Facility to provide financing for U.S. Unsecured Installment and Open-End receivables, including those generated under its technology, marketing and servicing relationship with Stride Bank. Refer to Note 19, "Subsequent Events" for additional details. |
LOANS RECEIVABLE AND REVENUE (T
LOANS RECEIVABLE AND REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Summary of Revenue by Product | The following table summarizes revenue by product (in thousands): Three Months Ended March 31, 2020 2019 Unsecured Installment $ 122,409 $ 135,778 Secured Installment 26,286 27,477 Open-End 70,982 52,869 Single-Pay 45,157 46,761 Ancillary 15,972 15,054 Total revenue (1) $ 280,806 $ 277,939 (1) Includes revenue from CSO programs of $68.1 million and $71.7 million for the three months ended March 31, 2020 and 2019, respectively. |
Summary of Loans Receivable by Product and Related Delinquent Loans | The following tables summarize loans receivable by product and the related delinquent loans receivable (in thousands): March 31, 2020 Single-Pay (1) Unsecured Installment Secured Installment Open-End Total Current loans receivable $ 54,728 $ 88,152 $ 57,284 $ 264,019 $ 464,183 Delinquent loans receivable — 34,966 15,301 49,987 100,254 Total loans receivable 54,728 123,118 72,585 314,006 564,437 Less: allowance for losses (4,693 ) (28,965 ) (9,726 ) (56,458 ) (99,842 ) Loans receivable, net $ 50,035 $ 94,153 $ 62,859 $ 257,548 $ 464,595 (1) Of the $54.7 million of Single-Pay receivables, $16.4 million relate to mandated extended payment options for certain Canada Single-Pay loans. March 31, 2020 Unsecured Installment Secured Installment Open-End Total Delinquent loans receivable 0-30 days past due $ 12,511 $ 7,168 $ 21,381 $ 41,060 31-60 days past due 9,566 3,991 12,390 25,947 61 + days past due 12,889 4,142 16,216 33,247 Total delinquent loans receivable $ 34,966 $ 15,301 $ 49,987 $ 100,254 December 31, 2019 Single-Pay (1) Unsecured Installment Secured Installment Open-End Total Current loans receivable $ 81,447 $ 117,682 $ 70,565 $ 285,452 $ 555,146 Delinquent loans receivable — 43,100 17,510 50,072 110,682 Total loans receivable 81,447 160,782 88,075 335,524 665,828 Less: allowance for losses (5,869 ) (35,587 ) (10,305 ) (55,074 ) (106,835 ) Loans receivable, net $ 75,578 $ 125,195 $ 77,770 $ 280,450 $ 558,993 (1) Of the $81.4 million of Single-Pay receivables, $22.4 million relate to mandated extended payment options for certain Canada Single-Pay loans. December 31, 2019 Unsecured Installment Secured Installment Open-End Total Delinquent loans receivable 0-30 days past due $ 15,369 $ 8,039 $ 21,823 $ 45,231 31-60 days past due 12,403 4,885 13,191 30,479 61 + days past due 15,328 4,586 15,058 34,972 Total delinquent loans receivable $ 43,100 $ 17,510 $ 50,072 $ 110,682 The following tables summarize loans guaranteed by the Company under CSO programs and the related delinquent receivables (in thousands): March 31, 2020 Unsecured Installment Secured Installment Total Current loans receivable guaranteed by the Company $ 44,865 $ 1,509 $ 46,374 Delinquent loans receivable guaranteed by the Company 9,232 311 9,543 Total loans receivable guaranteed by the Company 54,097 1,820 55,917 Less: Liability for losses on CSO lender-owned consumer loans (9,142 ) (47 ) (9,189 ) Loans receivable guaranteed by the Company, net $ 44,955 $ 1,773 $ 46,728 March 31, 2020 Unsecured Installment Secured Installment Total Delinquent loans receivable 0-30 days past due $ 7,589 $ 255 $ 7,844 31-60 days past due 939 32 971 61+ days past due 704 24 728 Total delinquent loans receivable $ 9,232 $ 311 $ 9,543 December 31, 2019 Unsecured Installment Secured Installment Total Current loans receivable guaranteed by the Company $ 61,840 $ 1,944 $ 63,784 Delinquent loans receivable guaranteed by the Company 12,477 392 12,869 Total loans receivable guaranteed by the Company 74,317 2,336 76,653 Less: Liability for losses on CSO lender-owned consumer loans (10,553 ) (70 ) (10,623 ) Loans receivable guaranteed by the Company, net $ 63,764 $ 2,266 $ 66,030 December 31, 2019 Unsecured Installment Secured Installment Total Delinquent loans receivable 0-30 days past due $ 10,392 $ 326 $ 10,718 31-60 days past due 1,256 40 1,296 61 + days past due 829 26 855 Total delinquent loans receivable $ 12,477 $ 392 $ 12,869 |
Summary of the Activity in the Allowance for Loan Losses | The following table summarizes activity in the allowance for loan losses (in thousands): Three Months Ended March 31, 2020 Single-Pay Unsecured Installment Secured Installment Open-End Other Total Balance, beginning of period $ 5,869 $ 35,587 $ 10,305 $ 55,074 $ — $ 106,835 Charge-offs (40,521 ) (38,558 ) (13,110 ) (43,509 ) (1,279 ) (136,977 ) Recoveries 30,004 5,783 2,909 6,411 575 45,682 Net charge-offs (10,517 ) (32,775 ) (10,201 ) (37,098 ) (704 ) (91,295 ) Provision for losses 9,639 26,182 9,622 40,991 704 87,138 Effect of foreign currency translation (298 ) (29 ) — (2,509 ) — (2,836 ) Balance, end of period $ 4,693 $ 28,965 $ 9,726 $ 56,458 $ — $ 99,842 Allowance for loan losses as a percentage of gross loan receivables 8.6 % 23.5 % 13.4 % 18.0 % N/A 17.7 % The following table summarizes activity in the allowance for loan losses (in thousands): Three Months Ended March 31, 2019 Single-Pay Unsecured Installment Secured Installment Open-End Other Total Balance, beginning of period $ 4,189 $ 37,716 $ 12,191 $ 19,901 $ — $ 73,997 Charge-offs (36,521 ) (44,237 ) (12,671 ) (3,638 ) (1,351 ) (98,418 ) Recoveries 27,911 6,318 3,123 5,159 898 43,409 Net charge-offs (8,610 ) (37,919 ) (9,548 ) 1,521 (453 ) (55,009 ) Provision for losses 8,268 33,845 7,153 25,317 453 75,036 Effect of foreign currency translation 50 24 — 224 — 298 Balance, end of period $ 3,897 $ 33,666 $ 9,796 $ 46,963 $ — $ 94,322 Allowance for loan losses as a percentage of gross loan receivables 5.6 % 20.8 % 12.1 % 19.5 % N/A 17.0 % |
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 (in thousands): Three Months Ended March 31, 2020 Unsecured Installment Secured Installment Total Balance, beginning of period $ 10,553 $ 70 $ 10,623 Charge-offs (41,511 ) (862 ) (42,373 ) Recoveries 13,762 779 14,541 Net charge-offs (27,749 ) (83 ) (27,832 ) Provision for losses 26,338 60 26,398 Balance, end of period $ 9,142 $ 47 $ 9,189 The following table summarizes activity in the liability for losses on CSO lender-owned consumer loans (in thousands): Three Months Ended March 31, 2019 Unsecured Installment Secured Installment Total Balance, beginning of period $ 11,582 $ 425 $ 12,007 Charge-offs (40,980 ) (1,076 ) (42,056 ) Recoveries 10,560 802 11,362 Net charge-offs (30,420 ) (274 ) (30,694 ) Provision for losses 27,422 (73 ) 27,349 Balance, end of period $ 8,584 $ 78 $ 8,662 |
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 (in thousands): Three Months Ended March 31, 2020 Single-Pay Unsecured Installment Secured Installment Open-End Other Total Balance, beginning of period $ 5,869 $ 46,140 $ 10,375 $ 55,074 $ — $ 117,458 Charge-offs (40,521 ) (80,069 ) (13,972 ) (43,509 ) (1,279 ) (179,350 ) Recoveries 30,004 19,545 3,688 6,411 575 60,223 Net charge-offs (10,517 ) (60,524 ) (10,284 ) (37,098 ) (704 ) (119,127 ) Provision for losses 9,639 52,520 9,682 40,991 704 113,536 Effect of foreign currency translation (298 ) (29 ) — (2,509 ) — (2,836 ) Balance, end of period $ 4,693 $ 38,107 $ 9,773 $ 56,458 $ — $ 109,031 The following table summarizes activity in the allowance for loan losses and the liability for losses on CSO lender-owned consumer loans, a non-GAAP metric, in total (in thousands): Three Months Ended March 31, 2019 Single-Pay Unsecured Installment Secured Installment Open-End Other Total Balance, beginning of period $ 4,189 $ 49,298 $ 12,616 $ 19,901 $ — $ 86,004 Charge-offs (36,521 ) (85,217 ) (13,747 ) (3,638 ) (1,351 ) (140,474 ) Recoveries 27,911 16,878 3,925 5,159 898 54,771 Net charge-offs (8,610 ) (68,339 ) (9,822 ) 1,521 (453 ) (85,703 ) Provision for losses 8,268 61,267 7,080 25,317 453 102,385 Effect of foreign currency translation 50 24 — 224 — 298 Balance, end of period $ 3,897 $ 42,250 $ 9,874 $ 46,963 $ — $ 102,984 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | ebt consisted of the following (in thousands): March 31, 2020 December 31, 2019 8.25% Senior Secured Notes (due 2025) $ 678,727 $ 678,323 Non-Recourse Canada SPV Facility 84,724 112,221 Senior Revolver 25,000 — Debt $ 788,451 $ 790,544 |
SHARE-BASED COMPENSATION Tables
SHARE-BASED COMPENSATION Tables (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Activity | A summary of the activity of time-based and market-based unvested RSUs as of March 31, 2020 and changes during the three months ended March 31, 2020 are presented in the following table: Number of RSUs Time-Based Market-Based Weighted Average Grant Date Fair Value per Share December 31, 2019 1,061,753 394,861 $ 11.47 Granted 571,773 368,539 10.55 Vested (197,859 ) — 11.39 Forfeited (12,756 ) (2,613 ) 12.07 March 31, 2020 1,422,911 760,787 $ 11.08 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 unaudited Condensed Consolidated Balance Sheets at March 31, 2020 (in thousands): Estimated Fair Value Carrying Value March 31, Level 1 Level 2 Level 3 Total Financial assets: Cash $ 138,714 $ 138,714 $ — $ — $ 138,714 Restricted cash 41,527 41,527 — — 41,527 Loans receivable, net 464,595 — — 464,595 464,595 Equity method investment 8,450 — — 8,450 8,450 Financial liabilities: Liability for losses on CSO lender-owned consumer loans $ 9,189 $ — $ — $ 9,189 $ 9,189 8.25% Senior Secured Notes 678,727 — 478,503 — 478,503 Non-Recourse Canada SPV facility 84,724 — — 87,365 87,365 Senior Revolver 25,000 — — 25,000 25,000 The table below presents the assets and liabilities that were not carried at fair value on the unaudited Condensed Consolidated Balance Sheets at December 31, 2019 (in thousands): Estimated Fair Value Carrying Value December 31, Level 1 Level 2 Level 3 Total Financial assets: Cash $ 75,242 $ 75,242 $ — $ — $ 75,242 Restricted cash 34,779 34,779 — — 34,779 Loans receivable, net 558,993 — — 558,993 558,993 Equity method investment 10,068 — — 10,068 10,068 Financial liabilities: Liability for losses on CSO lender-owned consumer loans $ 10,623 $ — $ — $ 10,623 $ 10,623 8.25% Senior Secured Notes 678,323 — 596,924 — 596,924 Non-Recourse Canada SPV facility 112,221 — — 115,243 115,243 The table below presents the assets and liabilities that were carried at fair value on the unaudited Condensed Consolidated Balance Sheets at March 31, 2020 (in thousands): Estimated Fair Value Carrying Value March 31, Level 1 Level 2 Level 3 Total Financial assets: Cash Surrender Value of Life Insurance $ 5,696 $ 5,696 $ — $ — $ 5,696 Financial liabilities: Non-qualified deferred compensation plan $ 3,818 $ 3,818 $ — $ — $ 3,818 The table below presents the assets and liabilities that were carried at fair value on the unaudited Condensed Consolidated Balance Sheets at December 31, 2019 (in thousands): Estimated Fair Value Carrying Value December 31, Level 1 Level 2 Level 3 Total Financial assets: Cash Surrender Value of Life Insurance $ 6,171 $ 6,171 $ — $ — $ 6,171 Financial liabilities: Non-qualified deferred compensation plan $ 4,666 $ 4,666 $ — $ — $ 4,666 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of Stockholders Equity | The following table summarizes the changes in stockholders' equity for the three months ended March 31, 2020 and 2019 (in thousands): Common Stock Treasury Stock Paid-in capital Retained Earnings (Deficit) AOCI (1) Total Stockholders' Equity Shares Outstanding Par Value Balances at December 31, 2019 41,156,224 $ 9 $ (72,343 ) $ 68,087 $ 93,423 $ (38,663 ) $ 50,513 Net income from continuing operations — — — — 36,013 — 36,013 Net income from discontinued operations — — — — 292 — 292 Foreign currency translation adjustment — — — — — (22,193 ) (22,193 ) Dividends — — — — (2,256 ) — — (2,256 ) Share based compensation expense — — — 3,194 — — 3,194 Proceeds from exercise of stock options 42,094 — — 126 — — 126 Repurchase of common stock (540,762 ) — (5,509 ) — — — (5,509 ) Common stock issued for RSU's vesting, net of shares withheld and withholding paid for employee taxes 121,891 — — (609 ) — — (609 ) Balances at March 31, 2020 40,779,447 $ 9 $ (77,852 ) $ 70,798 $ 127,472 $ (60,856 ) $ 59,571 (1) Accumulated other comprehensive income (loss) Common Stock Treasury Stock Paid-in capital Retained Earnings (Deficit) AOCI (1) Total Stockholders' Equity (Deficit) Shares Outstanding Par Value Balances at December 31, 2018 46,412,231 $ 9 $ — $ 60,015 $ (18,065 ) $ (61,060 ) $ (19,101 ) Net income from continuing operations — — — — 28,673 — 28,673 Net income from discontinued operations — — — — 8,375 — 8,375 Foreign currency translation adjustment — — — — — 16,695 16,695 Share based compensation expense — — — 2,172 — — 2,172 Proceeds from exercise of stock options 7,888 — — 40 — — 40 Common stock issued for RSU's vesting, net of shares withheld and withholding paid for employee taxes 11,170 — — (110 ) — — (110 ) Balances at March 31, 2019 46,431,289 $ 9 $ — $ 62,117 $ 18,983 $ (44,365 ) $ 36,744 (1) Accumulated other comprehensive income (loss) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 2020 2019 Net income from continuing operations $ 36,013 $ 28,673 Net income from discontinued operations, net of tax 292 8,375 Net income $ 36,305 $ 37,048 Weighted average common shares - basic 40,817 46,424 Dilutive effect of stock options and restricted stock units 1,075 895 Weighted average common shares - diluted 41,892 47,319 Basic earnings per share: Continuing operations $ 0.88 $ 0.62 Discontinued operations 0.01 0.18 Basic earnings per share $ 0.89 $ 0.80 Diluted earnings per share: Continuing operations $ 0.86 $ 0.61 Discontinued operations 0.01 0.18 Diluted earnings per share $ 0.87 $ 0.79 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | The following table provides supplemental cash flow information (in thousands): Three Months Ended 2020 2019 Cash paid for: Interest $ 31,184 $ 32,195 Income taxes, net of refunds 1,065 1,456 Non-cash investing activities: Property and equipment accrued in accounts payable $ 869 $ 349 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Summary of Financial Information by Segment | The following table illustrates summarized financial information concerning reportable segments (in thousands): Three Months Ended 2020 2019 Revenues by segment: (1) U.S. $ 221,768 $ 226,119 Canada 59,038 51,820 Consolidated revenue $ 280,806 $ 277,939 Net revenues by segment: U.S. $ 135,727 $ 141,139 Canada 31,543 34,415 Consolidated net revenue $ 167,270 $ 175,554 Gross margin by segment: U.S. $ 87,540 $ 89,803 Canada 12,159 15,694 Consolidated gross margin $ 99,699 $ 105,497 Segment operating income (loss): U.S. $ 33,426 $ 31,195 Canada 4,524 7,524 Consolidated operating profit $ 37,950 $ 38,719 Expenditures for long-lived assets by segment: U.S. $ 4,280 $ 2,430 Canada 553 689 Consolidated expenditures for long-lived assets $ 4,833 $ 3,119 (1) For revenue by product, see Note 3, "Loans Receivable and Revenue." The following table provides the proportion of gross loans receivable by segment (in thousands): March 31, December 31, U.S. $ 288,127 $ 363,453 Canada 276,310 302,375 Total gross loans receivable $ 564,437 $ 665,828 |
Summary of Long-lived Assets by Geographic Region | The following table represents the Company's 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 (in thousands): March 31, 2020 December 31, 2019 U.S. $ 42,536 $ 43,618 Canada 24,251 27,193 Total net long-lived assets $ 66,787 $ 70,811 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Summary of Operating Lease Costs | The following table summarizes the operating lease costs and other information for the three months ended March 31, 2020 and March 31, 2019 (in thousands): Three Months Ended March 31, 2020 2019 Operating lease costs: Third-Party $ 7,626 $ 7,621 Related-Party 864 847 Total operating lease costs $ 8,490 $ 8,468 Operating cash flow - Operating leases $ 8,433 $ 8,615 New ROU assets - Operating leases $ 5,647 $ — Weighted average remaining lease term - Operating leases 6.3 years 6.1 years Weighted average discount rate - Operating leases 10.3 % 10.3 % |
Summary of Future Minimum Lease Payments, ASC 842 | The following table summarizes the aggregate operating lease maturities that the Company is contractually obligated to make under operating leases as of March 31, 2020 (in thousands): Third-Party Related-Party Total Remainder of 2020 $ 22,437 $ 2,809 $ 25,246 2021 27,464 3,767 31,231 2022 24,640 3,661 28,301 2023 19,995 1,316 21,311 2024 15,343 962 16,305 2025 11,178 861 12,039 Thereafter 30,416 2,655 33,071 Total 151,473 16,031 167,504 Less: Imputed interest (41,963 ) (3,826 ) (45,789 ) Operating lease liabilities $ 109,510 $ 12,205 $ 121,715 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | The following table presents cash flows of the U.K. Subsidiaries (in thousands): Three Months Ended 2020 2019 (1) Net cash provided by (used in) discontinued operating activities $ 390 $ (504 ) Net cash used in discontinued investing activities — (14,213 ) Net cash used in discontinued financing activities — — (1) Includes U.K. Subsidiaries financial results from January 1, 2019 to February 25, 2019. The following table presents the results of operations of the U.K. Subsidiaries, which meet the criteria of Discontinued Operations and, therefore, are excluded from the Company's results of continuing operations (in thousands): Three Months Ended 2020 2019 (1) Revenue $ — $ 6,957 Provision for losses — 1,703 Net revenue — 5,254 Cost of providing services Office — 246 Other costs of providing services — 61 Advertising — 775 Total cost of providing services — 1,082 Gross margin — 4,172 Operating (income) expense Corporate, district and other expenses — 3,810 Interest income — (4 ) (Gain) loss on disposition (390 ) 39,414 Total operating (income) expense (390 ) 43,220 Pre-tax income (loss) from operations of discontinued operations 390 (39,048 ) Income tax expense (benefit) related to disposition 98 (47,423 ) Net income from discontinued operations $ 292 $ 8,375 (1) Includes U.K. Subsidiaries financial results from January 1, 2019 to February 25, 2019. |
GOODWILL (Tables)
GOODWILL (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The change in the carrying amount of Goodwill by operating segment for the three months ended March 31, 2020 was as follows (in thousands): U.S. Canada Total Goodwill at December 31, 2019 $ 91,131 $ 29,478 $ 120,609 Acquisition (Note 17) 14,791 — 14,791 Foreign currency translation — (2,575 ) (2,575 ) Goodwill at March 31, 2020 105,922 26,903 132,825 |
ACQUISITION (Tables)
ACQUISITION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the allocation of the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: (in thousands) Amounts acquired on January 3, 2020 Cash consideration transferred: $ 17,811 Cash and cash equivalents 3,360 Accounts receivable 465 Property and equipment 358 Intangible assets 1,101 Goodwill 14,791 Operating lease asset 235 Accounts payable and accrued liabilities (2,264 ) Operating lease liabilities (235 ) Total $ 17,811 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS - Narrative (Details) $ in Thousands | Jan. 03, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019reporting_unit | Mar. 31, 2019USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Decrease in gross loans receivable | $ 26,500 | |||
Decrease in gross loans receivable, percent | 8.70% | |||
Acquisition of Ad Astra, net of cash received | $ 14,418 | $ 0 | ||
Number of reporting units | reporting_unit | 2 | |||
Katapult | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Ownership percentage | 42.50% | |||
Ad Astra | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Equity interests acquired | 100.00% | |||
Acquisition of Ad Astra, net of cash received | $ 14,400 |
VARIABLE INTEREST ENTITIES - Ca
VARIABLE INTEREST ENTITIES - Carrying Amounts of Consolidated VIE Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Total Assets | $ 1,066,766 | $ 1,081,895 |
Liabilities | ||
Total Liabilities | 1,007,195 | 1,031,382 |
Variable Interest Entity | ||
ASSETS | ||
Restricted cash | 22,317 | 17,427 |
Loans receivable less allowance for loan losses | 203,837 | 220,067 |
Total Assets | 226,154 | 237,494 |
Liabilities | ||
Accounts payable and accrued liabilities | 13,267 | 13,462 |
Deferred revenue | 39 | 46 |
Accrued interest | 627 | 871 |
Intercompany payable | 80,240 | 69,639 |
Debt | 84,874 | 112,221 |
Total Liabilities | $ 179,047 | $ 196,239 |
LOANS RECEIVABLE AND REVENUE -
LOANS RECEIVABLE AND REVENUE - Revenue by Product (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Receivables [Abstract] | ||
Additional allowance for loan loss due to COVID-19 | $ 12,000 | |
Revenue from External Customer [Line Items] | ||
Revenue | 280,806 | $ 277,939 |
Consumer Portfolio Segment | Unsecured Installment | ||
Revenue from External Customer [Line Items] | ||
Revenue | 122,409 | 135,778 |
Consumer Portfolio Segment | Secured Installment | ||
Revenue from External Customer [Line Items] | ||
Revenue | 26,286 | 27,477 |
Consumer Portfolio Segment | Open-End | ||
Revenue from External Customer [Line Items] | ||
Revenue | 70,982 | 52,869 |
Consumer Portfolio Segment | Single-Pay | ||
Revenue from External Customer [Line Items] | ||
Revenue | 45,157 | 46,761 |
Ancillary | ||
Revenue from External Customer [Line Items] | ||
Revenue | 15,972 | 15,054 |
Credit Services Organization Programs | ||
Revenue from External Customer [Line Items] | ||
Revenue | $ 68,100 | $ 71,700 |
LOANS RECEIVABLE AND REVENUE _2
LOANS RECEIVABLE AND REVENUE - Loans Receivable by Product and Delinquency (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Current loans receivable | $ 464,183 | $ 555,146 | ||
Delinquent loans receivable | 100,254 | 110,682 | ||
Total loans receivable | 564,437 | 665,828 | ||
Less: allowance for losses | (99,842) | (106,835) | $ (94,322) | $ (73,997) |
Loans receivable, net | 464,595 | 558,993 | ||
Consumer Portfolio Segment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Delinquent loans receivable | 100,254 | 110,682 | ||
Consumer Portfolio Segment | Single-Pay | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Current loans receivable | 54,728 | 81,447 | ||
Delinquent loans receivable | 0 | 0 | ||
Total loans receivable | 54,728 | 81,447 | ||
Less: allowance for losses | (4,693) | (5,869) | (3,897) | (4,189) |
Loans receivable, net | 50,035 | 75,578 | ||
Consumer Portfolio Segment | Unsecured Installment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Current loans receivable | 88,152 | 117,682 | ||
Delinquent loans receivable | 34,966 | 43,100 | ||
Total loans receivable | 123,118 | 160,782 | ||
Less: allowance for losses | (28,965) | (35,587) | (33,666) | (37,716) |
Loans receivable, net | 94,153 | 125,195 | ||
Consumer Portfolio Segment | Secured Installment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Current loans receivable | 57,284 | 70,565 | ||
Delinquent loans receivable | 15,301 | 17,510 | ||
Total loans receivable | 72,585 | 88,075 | ||
Less: allowance for losses | (9,726) | (10,305) | (9,796) | (12,191) |
Loans receivable, net | 62,859 | 77,770 | ||
Consumer Portfolio Segment | Open-End | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Current loans receivable | 264,019 | 285,452 | ||
Delinquent loans receivable | 49,987 | 50,072 | ||
Total loans receivable | 314,006 | 335,524 | ||
Less: allowance for losses | (56,458) | (55,074) | $ (46,963) | $ (19,901) |
Loans receivable, net | 257,548 | 280,450 | ||
CANADA | Consumer Portfolio Segment | Single-Pay | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans receivable | $ 16,400 | $ 22,400 |
LOANS RECEIVABLE AND REVENUE _3
LOANS RECEIVABLE AND REVENUE - Delinquent Loans - Aging Analysis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | $ 100,254 | $ 110,682 |
Consumer Portfolio Segment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 100,254 | 110,682 |
Consumer Portfolio Segment | 0-30 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 41,060 | 45,231 |
Consumer Portfolio Segment | 31-60 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 25,947 | 30,479 |
Consumer Portfolio Segment | 61 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 33,247 | 34,972 |
Consumer Portfolio Segment | Unsecured Installment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 34,966 | 43,100 |
Consumer Portfolio Segment | Unsecured Installment | 0-30 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 12,511 | 15,369 |
Consumer Portfolio Segment | Unsecured Installment | 31-60 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 9,566 | 12,403 |
Consumer Portfolio Segment | Unsecured Installment | 61 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 12,889 | 15,328 |
Consumer Portfolio Segment | Secured Installment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 15,301 | 17,510 |
Consumer Portfolio Segment | Secured Installment | 0-30 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 7,168 | 8,039 |
Consumer Portfolio Segment | Secured Installment | 31-60 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 3,991 | 4,885 |
Consumer Portfolio Segment | Secured Installment | 61 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 4,142 | 4,586 |
Consumer Portfolio Segment | Open-End | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 49,987 | 50,072 |
Consumer Portfolio Segment | Open-End | 0-30 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 21,381 | 21,823 |
Consumer Portfolio Segment | Open-End | 31-60 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 12,390 | 13,191 |
Consumer Portfolio Segment | Open-End | 61 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | $ 16,216 | $ 15,058 |
LOANS RECEIVABLE AND REVENUE _4
LOANS RECEIVABLE AND REVENUE - Loans Receivable by Product, Credit Services Organization (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Current loans receivable guaranteed by the Company | $ 46,374 | $ 63,784 | ||
Delinquent loans receivable guaranteed by the Company | 9,543 | 12,869 | ||
Total loans receivable guaranteed by the Company | 55,917 | 76,653 | ||
Less: Liability for losses on CSO lender-owned consumer loans | (9,189) | (10,623) | $ (8,662) | $ (12,007) |
Loans receivable guaranteed by the Company, net | 46,728 | 66,030 | ||
Consumer Portfolio Segment | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Delinquent loans receivable guaranteed by the Company | 9,543 | 12,869 | ||
Consumer Portfolio Segment | Unsecured Installment | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Current loans receivable guaranteed by the Company | 44,865 | 61,840 | ||
Delinquent loans receivable guaranteed by the Company | 9,232 | 12,477 | ||
Total loans receivable guaranteed by the Company | 54,097 | 74,317 | ||
Less: Liability for losses on CSO lender-owned consumer loans | (9,142) | (10,553) | (8,584) | (11,582) |
Loans receivable guaranteed by the Company, net | 44,955 | 63,764 | ||
Consumer Portfolio Segment | Secured Installment | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Current loans receivable guaranteed by the Company | 1,509 | 1,944 | ||
Delinquent loans receivable guaranteed by the Company | 311 | 392 | ||
Total loans receivable guaranteed by the Company | 1,820 | 2,336 | ||
Less: Liability for losses on CSO lender-owned consumer loans | (47) | (70) | $ (78) | $ (425) |
Loans receivable guaranteed by the Company, net | $ 1,773 | $ 2,266 |
LOANS RECEIVABLE AND REVENUE _5
LOANS RECEIVABLE AND REVENUE - Delinquent Loans, Credit Services Organization - Aging Analysis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | $ 9,543 | $ 12,869 |
Consumer Portfolio Segment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 9,543 | 12,869 |
Consumer Portfolio Segment | 0-30 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 7,844 | 10,718 |
Consumer Portfolio Segment | 31-60 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 971 | 1,296 |
Consumer Portfolio Segment | 61 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 728 | 855 |
Consumer Portfolio Segment | Unsecured Installment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 9,232 | 12,477 |
Consumer Portfolio Segment | Unsecured Installment | 0-30 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 7,589 | 10,392 |
Consumer Portfolio Segment | Unsecured Installment | 31-60 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 939 | 1,256 |
Consumer Portfolio Segment | Unsecured Installment | 61 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 704 | 829 |
Consumer Portfolio Segment | Secured Installment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 311 | 392 |
Consumer Portfolio Segment | Secured Installment | 0-30 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 255 | 326 |
Consumer Portfolio Segment | Secured Installment | 31-60 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 32 | 40 |
Consumer Portfolio Segment | Secured Installment | 61 days past due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | $ 24 | $ 26 |
LOANS RECEIVABLE AND REVENUE _6
LOANS RECEIVABLE AND REVENUE - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | $ 106,835 | $ 73,997 |
Charge-offs | (136,977) | (98,418) |
Recoveries | 45,682 | 43,409 |
Net charge-offs | (91,295) | (55,009) |
Provision for losses | 87,138 | 75,036 |
Effect of foreign currency translation | (2,836) | 298 |
Balance, end of period | $ 99,842 | $ 94,322 |
Allowance for Losses on Finance Receivables | Credit Concentration Risk | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Concentration risk, percentage | 17.70% | 17.00% |
Consumer Portfolio Segment | Single-Pay | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | $ 5,869 | $ 4,189 |
Charge-offs | (40,521) | (36,521) |
Recoveries | 30,004 | 27,911 |
Net charge-offs | (10,517) | (8,610) |
Provision for losses | 9,639 | 8,268 |
Effect of foreign currency translation | (298) | 50 |
Balance, end of period | $ 4,693 | $ 3,897 |
Consumer Portfolio Segment | Single-Pay | Allowance for Losses on Finance Receivables | Credit Concentration Risk | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Concentration risk, percentage | 8.60% | 5.60% |
Consumer Portfolio Segment | Unsecured Installment | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | $ 35,587 | $ 37,716 |
Charge-offs | (38,558) | (44,237) |
Recoveries | 5,783 | 6,318 |
Net charge-offs | (32,775) | (37,919) |
Provision for losses | 26,182 | 33,845 |
Effect of foreign currency translation | (29) | 24 |
Balance, end of period | $ 28,965 | $ 33,666 |
Consumer Portfolio Segment | Unsecured Installment | Allowance for Losses on Finance Receivables | Credit Concentration Risk | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Concentration risk, percentage | 23.50% | 20.80% |
Consumer Portfolio Segment | Secured Installment | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | $ 10,305 | $ 12,191 |
Charge-offs | (13,110) | (12,671) |
Recoveries | 2,909 | 3,123 |
Net charge-offs | (10,201) | (9,548) |
Provision for losses | 9,622 | 7,153 |
Effect of foreign currency translation | 0 | 0 |
Balance, end of period | $ 9,726 | $ 9,796 |
Consumer Portfolio Segment | Secured Installment | Allowance for Losses on Finance Receivables | Credit Concentration Risk | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Concentration risk, percentage | 13.40% | 12.10% |
Consumer Portfolio Segment | Open-End | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | $ 55,074 | $ 19,901 |
Charge-offs | (43,509) | (3,638) |
Recoveries | 6,411 | 5,159 |
Net charge-offs | (37,098) | 1,521 |
Provision for losses | 40,991 | 25,317 |
Effect of foreign currency translation | (2,509) | 224 |
Balance, end of period | $ 56,458 | $ 46,963 |
Consumer Portfolio Segment | Open-End | Allowance for Losses on Finance Receivables | Credit Concentration Risk | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Concentration risk, percentage | 18.00% | 19.50% |
Consumer Portfolio Segment | Other | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | $ 0 | $ 0 |
Charge-offs | (1,279) | (1,351) |
Recoveries | 575 | 898 |
Net charge-offs | (704) | (453) |
Provision for losses | 704 | 453 |
Effect of foreign currency translation | 0 | 0 |
Balance, end of period | $ 0 | $ 0 |
LOANS RECEIVABLE AND REVENUE _7
LOANS RECEIVABLE AND REVENUE - CSO Guarantee Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Guarantor Obligations [Roll Forward] | ||
Balance, beginning of period | $ 10,623 | $ 12,007 |
Charge-offs | (42,373) | (42,056) |
Recoveries | 14,541 | 11,362 |
Net charge-offs | (27,832) | (30,694) |
Provision for losses | 26,398 | 27,349 |
Balance, end of period | 9,189 | 8,662 |
Consumer Portfolio Segment | Unsecured Installment | ||
Guarantor Obligations [Roll Forward] | ||
Balance, beginning of period | 10,553 | 11,582 |
Charge-offs | (41,511) | (40,980) |
Recoveries | 13,762 | 10,560 |
Net charge-offs | (27,749) | (30,420) |
Provision for losses | 26,338 | 27,422 |
Balance, end of period | 9,142 | 8,584 |
Consumer Portfolio Segment | Secured Installment | ||
Guarantor Obligations [Roll Forward] | ||
Balance, beginning of period | 70 | 425 |
Charge-offs | (862) | (1,076) |
Recoveries | 779 | 802 |
Net charge-offs | (83) | (274) |
Provision for losses | 60 | (73) |
Balance, end of period | $ 47 | $ 78 |
LOANS RECEIVABLE AND REVENUE _8
LOANS RECEIVABLE AND REVENUE - Allowance For Doubtful Accounts - CSO Guarantee Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Financing Receivable, Allowance for Credit Losses And Guarantor Obligations [Roll Forward] | ||
Balance, beginning of period | $ 117,458 | $ 86,004 |
Charge-offs | (179,350) | (140,474) |
Recoveries | 60,223 | 54,771 |
Net charge-offs | (119,127) | (85,703) |
Provision for losses | 113,536 | 102,385 |
Effect of foreign currency translation | (2,836) | 298 |
Balance, end of period | 109,031 | 102,984 |
Consumer Portfolio Segment | Single-Pay | ||
Financing Receivable, Allowance for Credit Losses And Guarantor Obligations [Roll Forward] | ||
Balance, beginning of period | 5,869 | 4,189 |
Charge-offs | (40,521) | (36,521) |
Recoveries | 30,004 | 27,911 |
Net charge-offs | (10,517) | (8,610) |
Provision for losses | 9,639 | 8,268 |
Effect of foreign currency translation | (298) | 50 |
Balance, end of period | 4,693 | 3,897 |
Consumer Portfolio Segment | Unsecured Installment | ||
Financing Receivable, Allowance for Credit Losses And Guarantor Obligations [Roll Forward] | ||
Balance, beginning of period | 46,140 | 49,298 |
Charge-offs | (80,069) | (85,217) |
Recoveries | 19,545 | 16,878 |
Net charge-offs | (60,524) | (68,339) |
Provision for losses | 52,520 | 61,267 |
Effect of foreign currency translation | (29) | 24 |
Balance, end of period | 38,107 | 42,250 |
Consumer Portfolio Segment | Secured Installment | ||
Financing Receivable, Allowance for Credit Losses And Guarantor Obligations [Roll Forward] | ||
Balance, beginning of period | 10,375 | 12,616 |
Charge-offs | (13,972) | (13,747) |
Recoveries | 3,688 | 3,925 |
Net charge-offs | (10,284) | (9,822) |
Provision for losses | 9,682 | 7,080 |
Effect of foreign currency translation | 0 | 0 |
Balance, end of period | 9,773 | 9,874 |
Consumer Portfolio Segment | Open-End | ||
Financing Receivable, Allowance for Credit Losses And Guarantor Obligations [Roll Forward] | ||
Balance, beginning of period | 55,074 | 19,901 |
Charge-offs | (43,509) | (3,638) |
Recoveries | 6,411 | 5,159 |
Net charge-offs | (37,098) | 1,521 |
Provision for losses | 40,991 | 25,317 |
Effect of foreign currency translation | (2,509) | 224 |
Balance, end of period | 56,458 | 46,963 |
Consumer Portfolio Segment | Other | ||
Financing Receivable, Allowance for Credit Losses And Guarantor Obligations [Roll Forward] | ||
Balance, beginning of period | 0 | 0 |
Charge-offs | (1,279) | (1,351) |
Recoveries | 575 | 898 |
Net charge-offs | (704) | (453) |
Provision for losses | 704 | 453 |
Effect of foreign currency translation | 0 | 0 |
Balance, end of period | $ 0 | $ 0 |
CREDIT SERVICES ORGANIZATION (D
CREDIT SERVICES ORGANIZATION (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Credit services organization, fees receivable | $ 6,800 | $ 14,700 | ||
Guarantor obligations, maximum exposure, undiscounted | 45,700 | 62,700 | ||
Liability for losses on CSO lender-owned consumer loans | 9,189 | 10,623 | $ 8,662 | $ 12,007 |
Amounts placed in collateral accounts | $ 5,700 | $ 6,200 | ||
Maximum | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
CSO program loan terms | 6 months |
DEBT - Schedule of Long Term De
DEBT - Schedule of Long Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Aug. 31, 2018 | Aug. 02, 2018 |
Debt Instrument [Line Items] | ||||
Debt | $ 788,451 | $ 790,544 | ||
Senior Notes | 8.25% Senior Secured Notes (due 2025) | ||||
Debt Instrument [Line Items] | ||||
Debt | $ 678,727 | $ 678,323 | ||
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] | ||||
Debt | $ 84,724 | $ 112,221 | ||
Stated interest rate (as percent) | 6.75% | |||
Line of Credit | Revolving Credit Facility | Senior Revolver | ||||
Debt Instrument [Line Items] | ||||
Debt | $ 25,000 | $ 0 |
DEBT - Senior Secured Notes (De
DEBT - Senior Secured Notes (Details) - Senior Notes - USD ($) | Aug. 13, 2018 | Mar. 31, 2020 | Dec. 31, 2019 | Aug. 31, 2018 | Nov. 30, 2017 |
8.25% Senior Secured Notes | |||||
Line of Credit Facility [Line Items] | |||||
Stated interest rate (as percent) | 8.25% | 8.25% | 8.25% | ||
Debt instrument, face amount | $ 690,000,000 | ||||
Debt issuance costs capitalized | $ 11,300,000 | ||||
Debt instrument, term | 5 years | ||||
12% Senior Secured Notes | |||||
Line of Credit Facility [Line Items] | |||||
Stated interest rate (as percent) | 12.00% |
DEBT - Non-Recourse Canada SPV
DEBT - Non-Recourse Canada SPV Facility (Details) $ in Thousands | Aug. 02, 2018CAD ($) | Apr. 30, 2019 | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Line of Credit Facility [Line Items] | ||||
Debt | $ 788,451 | $ 790,544 | ||
Line of Credit | Non-Recourse Canada SPV Facility | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, term | 4 years | |||
Line of credit facility, initial borrowing capacity | $ 175,000,000 | |||
Credit facility, expansion capacity | $ 250,000,000 | |||
Stated interest rate (as percent) | 6.75% | |||
Commitment fee (as percent) | 0.50% | |||
Debt instrument, extended term | 1 year | |||
Debt | 84,724 | $ 112,221 | ||
Deferred financing costs | $ 2,600 |
DEBT - Senior Revolver (Details
DEBT - Senior Revolver (Details) | Aug. 13, 2018 | Nov. 30, 2018USD ($) | Nov. 30, 2016 | Mar. 31, 2020lender | Dec. 31, 2019 | Aug. 31, 2018 | Nov. 30, 2017 | Sep. 01, 2017USD ($) |
Line of Credit | Revolving Credit Facility | Senior Revolver | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | $ 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% | |||||||
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% |
DEBT - Cash Money Revolving Cre
DEBT - Cash Money Revolving Credit Facility (Details) - Line of Credit - Cash Money Revolving Credit Facility - CAD ($) | 3 Months Ended | |
Mar. 31, 2020 | Jun. 29, 2019 | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 9,900,000 | $ 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 | $ 100,000 |
SHARE-BASED COMPENSATION - Addi
SHARE-BASED COMPENSATION - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 3.2 | $ 2.2 | |
Unrecognized compensation costs | $ 19.6 | ||
Compensation cost not yet recognized, period for recognition | 2 years 1 month 6 days | ||
2017 Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 5,000,000 | ||
Time-Based | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Unrecognized compensation costs | $ 13.8 | ||
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 | $ 5.6 |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summary of RSUs and PSUs (Details) | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Time-Based | |
Number of Shares | |
Outstanding, beginning of period (in shares) | 1,061,753 |
Granted (in shares) | 571,773 |
Vested (in shares) | (197,859) |
Forfeited (in shares) | (12,756) |
Outstanding, end of period (in shares) | 1,422,911 |
Weighted Average Grant Date Fair Value per Share | |
Weighted average grant date fair value, beginning of period (USD per share) | $ / shares | $ 11.47 |
Weighted average grant date fair value, granted (USD per share) | $ / shares | 10.55 |
Weighted average grant date fair value, vested (USD per share) | $ / shares | 11.39 |
Weighted average grant date fair value, forfeited (USD per share) | $ / shares | 12.07 |
Weighted average grant date fair value, end of period (USD per share) | $ / shares | $ 11.08 |
Market-Based | |
Number of Shares | |
Outstanding, beginning of period (in shares) | 394,861 |
Granted (in shares) | 368,539 |
Vested (in shares) | 0 |
Forfeited (in shares) | (2,613) |
Outstanding, end of period (in shares) | 760,787 |
Weighted Average Grant Date Fair Value per Share | |
Weighted average grant date fair value, beginning of period (USD per share) | $ / shares | $ 11.47 |
Weighted average grant date fair value, granted (USD per share) | $ / shares | 10.55 |
Weighted average grant date fair value, forfeited (USD per share) | $ / shares | 12.07 |
Weighted average grant date fair value, end of period (USD per share) | $ / shares | $ 11.08 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Contingency [Line Items] | ||
Effective income tax rate (as percent) | 5.10% | 25.90% |
Income tax benefit from CARES Act | $ 9.1 | |
Undistributed foreign earnings | 153.8 | |
Canada Revenue Agency | Pro forma | ||
Income Tax Contingency [Line Items] | ||
Expected tax if earnings were distributed to the U.S. | $ 7.7 |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of Assets and Liabilities Not Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Aug. 31, 2018 |
Financial assets: | ||||
Restricted cash | $ 41,527 | $ 34,779 | $ 34,319 | |
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% | |
Fair Value, Measurements, Recurring | Carrying Value | ||||
Financial assets: | ||||
Cash Surrender Value of Life Insurance | $ 5,696 | $ 6,171 | ||
Financial liabilities: | ||||
Non-qualified deferred compensation plan | 3,818 | 4,666 | ||
Fair Value, Measurements, Recurring | Estimated Fair Value | ||||
Financial assets: | ||||
Cash Surrender Value of Life Insurance | 5,696 | 6,171 | ||
Financial liabilities: | ||||
Non-qualified deferred compensation plan | 3,818 | 4,666 | ||
Fair Value, Measurements, Recurring | Estimated Fair Value | Level 1 | ||||
Financial assets: | ||||
Cash Surrender Value of Life Insurance | 5,696 | 6,171 | ||
Financial liabilities: | ||||
Non-qualified deferred compensation plan | 3,818 | 4,666 | ||
Fair Value, Measurements, Recurring | Estimated Fair Value | Level 2 | ||||
Financial assets: | ||||
Cash Surrender Value of Life Insurance | 0 | 0 | ||
Financial liabilities: | ||||
Non-qualified deferred compensation plan | 0 | 0 | ||
Fair Value, Measurements, Recurring | Estimated Fair Value | Level 3 | ||||
Financial assets: | ||||
Cash Surrender Value of Life Insurance | 0 | 0 | ||
Financial liabilities: | ||||
Non-qualified deferred compensation plan | 0 | 0 | ||
Fair Value, Measurements, Nonrecurring | Carrying Value | ||||
Financial assets: | ||||
Cash | 138,714 | 75,242 | ||
Restricted cash | 41,527 | 34,779 | ||
Loans receivable, net | 464,595 | 558,993 | ||
Equity method investment | 8,450 | 10,068 | ||
Financial liabilities: | ||||
Liability for losses on CSO lender-owned consumer loans | 9,189 | 10,623 | ||
Fair Value, Measurements, Nonrecurring | Carrying Value | 8.25% Senior Secured Notes (due 2025) | ||||
Financial liabilities: | ||||
Debt | 678,727 | 678,323 | ||
Fair Value, Measurements, Nonrecurring | Carrying Value | Non-Recourse Canada SPV Facility | ||||
Financial liabilities: | ||||
Debt | 84,724 | 112,221 | ||
Fair Value, Measurements, Nonrecurring | Carrying Value | Senior Revolver | ||||
Financial liabilities: | ||||
Debt | 25,000 | |||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | ||||
Financial assets: | ||||
Cash | 138,714 | 75,242 | ||
Restricted cash | 41,527 | 34,779 | ||
Loans receivable, net | 464,595 | 558,993 | ||
Equity method investment | 8,450 | 10,068 | ||
Financial liabilities: | ||||
Liability for losses on CSO lender-owned consumer loans | 9,189 | 10,623 | ||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | 8.25% Senior Secured Notes (due 2025) | ||||
Financial liabilities: | ||||
Debt | 478,503 | 596,924 | ||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Non-Recourse Canada SPV Facility | ||||
Financial liabilities: | ||||
Debt | 87,365 | 115,243 | ||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Senior Revolver | ||||
Financial liabilities: | ||||
Debt | 25,000 | |||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 1 | ||||
Financial assets: | ||||
Cash | 138,714 | 75,242 | ||
Restricted cash | 41,527 | 34,779 | ||
Loans receivable, net | 0 | 0 | ||
Equity method investment | 0 | 0 | ||
Financial liabilities: | ||||
Liability for losses on CSO lender-owned consumer loans | 0 | 0 | ||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 1 | 8.25% Senior Secured Notes (due 2025) | ||||
Financial liabilities: | ||||
Debt | 0 | 0 | ||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 1 | Non-Recourse Canada SPV Facility | ||||
Financial liabilities: | ||||
Debt | 0 | 0 | ||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 1 | Senior Revolver | ||||
Financial liabilities: | ||||
Debt | 0 | |||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 2 | ||||
Financial assets: | ||||
Cash | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Loans receivable, net | 0 | 0 | ||
Equity method investment | 0 | 0 | ||
Financial liabilities: | ||||
Liability for losses on CSO lender-owned consumer loans | 0 | 0 | ||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 2 | 8.25% Senior Secured Notes (due 2025) | ||||
Financial liabilities: | ||||
Debt | 478,503 | 596,924 | ||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 2 | Non-Recourse Canada SPV Facility | ||||
Financial liabilities: | ||||
Debt | 0 | 0 | ||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 2 | Senior Revolver | ||||
Financial liabilities: | ||||
Debt | 0 | |||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 3 | ||||
Financial assets: | ||||
Cash | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Loans receivable, net | 464,595 | 558,993 | ||
Equity method investment | 8,450 | 10,068 | ||
Financial liabilities: | ||||
Liability for losses on CSO lender-owned consumer loans | 9,189 | 10,623 | ||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 3 | 8.25% Senior Secured Notes (due 2025) | ||||
Financial liabilities: | ||||
Debt | 0 | 0 | ||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 3 | Non-Recourse Canada SPV Facility | ||||
Financial liabilities: | ||||
Debt | 87,365 | $ 115,243 | ||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 3 | Senior Revolver | ||||
Financial liabilities: | ||||
Debt | $ 25,000 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 31, 2020 | 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% |
Katapult | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Impairment recognized | $ 3.7 | ||
Ownership percentage | 42.50% |
STOCKHOLDERS' EQUITY - Schedule
STOCKHOLDERS' EQUITY - Schedule of Stockholders' Equity (Details) - USD ($) $ in Thousands | Mar. 02, 2020 | Mar. 31, 2020 | Mar. 31, 2019 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance, beginning period | $ 50,513 | $ (19,101) | |
Net income from continuing operations | 36,013 | 28,673 | |
Net income from discontinued operations | 292 | 8,375 | |
Foreign currency translation adjustment | (22,193) | 16,695 | |
Dividends | $ (2,200) | (2,256) | |
Share based compensation expense | 3,194 | 2,172 | |
Proceeds from exercise of stock options | $ 126 | 40 | |
Repurchase of common stock (in shares) | (540,762) | ||
Repurchase of common stock | $ (5,509) | ||
Common stock issued for RSU's vesting, net of shares withheld and withholding paid for employee taxes | (609) | (110) | |
Balance, ending period | $ 59,571 | $ 36,744 | |
Common Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance, beginning period (in shares) | 41,156,224 | 46,412,231 | |
Balance, beginning period | $ 9 | $ 9 | |
Proceeds from exercise of stock options (in shares) | 42,094 | 7,888 | |
Common stock issued for RSU's vesting, net of shares withheld and withholding paid for employee taxes (in shares) | 121,891 | 11,170 | |
Balance, ending period (in shares) | 40,779,447 | 46,431,289 | |
Balance, ending period | $ 9 | $ 9 | |
Treasury Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance, beginning period | (72,343) | 0 | |
Repurchase of common stock | (5,509) | ||
Balance, ending period | (77,852) | 0 | |
Paid-in capital | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance, beginning period | 68,087 | 60,015 | |
Share based compensation expense | 3,194 | 2,172 | |
Proceeds from exercise of stock options | 126 | 40 | |
Common stock issued for RSU's vesting, net of shares withheld and withholding paid for employee taxes | (609) | (110) | |
Balance, ending period | 70,798 | 62,117 | |
Retained Earnings (Deficit) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance, beginning period | 93,423 | (18,065) | |
Net income from continuing operations | 36,013 | 28,673 | |
Net income from discontinued operations | 292 | 8,375 | |
Dividends | (2,256) | ||
Balance, ending period | 127,472 | 18,983 | |
AOCI | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance, beginning period | (38,663) | (61,060) | |
Foreign currency translation adjustment | (22,193) | 16,695 | |
Balance, ending period | $ (60,856) | $ (44,365) |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 02, 2020 | Mar. 31, 2020 | Feb. 05, 2020 |
Equity [Abstract] | |||
Quarterly cash dividend (in dollars per share) | $ 0.055 | ||
Dividends paid | $ 2,200 | $ 2,256 |
EARNINGS PER SHARE - Summary of
EARNINGS PER SHARE - Summary of Basic Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net income from continuing operations | $ 36,013 | $ 28,673 |
Net income from discontinued operations | 292 | 8,375 |
Net income | $ 36,305 | $ 37,048 |
Weight average common shares - basic (in shares) | 40,817 | 46,424 |
Dilutive effect of stock options and restricted stock units (in shares) | 1,075 | 895 |
Weighted average common shares - diluted (in shares) | 41,892 | 47,319 |
Basic earnings per share: | ||
Continuing operations (in dollars per share) | $ 0.88 | $ 0.62 |
Discontinued operations (in dollars per share) | 0.01 | 0.18 |
Basic earnings per share (in dollars per share) | 0.89 | 0.80 |
Diluted earnings per share: | ||
Continuing operations (in dollars per share) | 0.86 | 0.61 |
Discontinued operations (in dollars per share) | 0.01 | 0.18 |
Diluted earnings per share (in dollars per share) | $ 0.87 | $ 0.79 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1.3 | 1.4 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash paid for: | ||
Interest | $ 31,184 | $ 32,195 |
Income taxes, net of refunds | 1,065 | 1,456 |
Non-cash investing activities: | ||
Property and equipment accrued in accounts payable | $ 869 | $ 349 |
SEGMENT REPORTING - Narrative (
SEGMENT REPORTING - Narrative (Details) | Mar. 31, 2020statestoreprovince |
U.S. | |
Segment Reporting Information [Line Items] | |
Number of retail locations | store | 214 |
Number of states/provinces with online presence | state | 27 |
Canada | |
Segment Reporting Information [Line Items] | |
Number of retail locations | store | 202 |
Number of states/provinces with retail locations | province | 7 |
Number of states/provinces with online presence | province | 5 |
SEGMENT REPORTING - Summary of
SEGMENT REPORTING - Summary of Financial Information by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Consolidated revenue | $ 280,806 | $ 277,939 | |
Consolidated net revenue | 167,270 | 175,554 | |
Consolidated gross margin | 99,699 | 105,497 | |
Consolidated operating profit | 37,950 | 38,719 | |
Consolidated expenditures for long-lived assets | 4,833 | 3,119 | |
Total gross loans receivable | 564,437 | $ 665,828 | |
U.S. | |||
Segment Reporting Information [Line Items] | |||
Consolidated revenue | 221,768 | 226,119 | |
Consolidated net revenue | 135,727 | 141,139 | |
Consolidated gross margin | 87,540 | 89,803 | |
Consolidated operating profit | 33,426 | 31,195 | |
Consolidated expenditures for long-lived assets | 4,280 | 2,430 | |
Total gross loans receivable | 288,127 | 363,453 | |
Canada | |||
Segment Reporting Information [Line Items] | |||
Consolidated revenue | 59,038 | 51,820 | |
Consolidated net revenue | 31,543 | 34,415 | |
Consolidated gross margin | 12,159 | 15,694 | |
Consolidated operating profit | 4,524 | 7,524 | |
Consolidated expenditures for long-lived assets | 553 | $ 689 | |
Total gross loans receivable | $ 276,310 | $ 302,375 |
SEGMENT REPORTING - Summary o_2
SEGMENT REPORTING - Summary of Long-lived Assets by Geographical Region (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net long-lived assets | $ 66,787 | $ 70,811 |
U.S. | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net long-lived assets | 42,536 | 43,618 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net long-lived assets | $ 24,251 | $ 27,193 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | Mar. 31, 2020renewal_option |
Lessee, Lease, Description [Line Items] | |
Operating lease original term of contract | 5 years |
Number of renewal terms | 2 |
Operating lease renewal term | 5 years |
LEASES - Summary of Operating L
LEASES - Summary of Operating Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | $ 8,490 | $ 8,468 |
Operating lease payments | 8,433 | 8,615 |
ROU assets obtained in exchange for lease liabilities | $ 5,647 | $ 0 |
Weighted average remaining lease term | 6 years 3 months 6 days | 6 years 1 month 6 days |
Weighted average operating discount rate | 10.30% | 10.30% |
Third-Party | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | $ 7,626 | $ 7,621 |
Related-Party | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | $ 864 | $ 847 |
LEASES - Schedule of Future Min
LEASES - Schedule of Future Minimum Lease Payments, ASC 842 (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Lessee, Lease, Description [Line Items] | |
Remainder of 2020 | $ 25,246 |
2021 | 31,231 |
2022 | 28,301 |
2023 | 21,311 |
2024 | 16,305 |
2025 | 12,039 |
Thereafter | 33,071 |
Total | 167,504 |
Less: Imputed interest | (45,789) |
Operating lease liabilities | 121,715 |
Third-Party | |
Lessee, Lease, Description [Line Items] | |
Remainder of 2020 | 22,437 |
2021 | 27,464 |
2022 | 24,640 |
2023 | 19,995 |
2024 | 15,343 |
2025 | 11,178 |
Thereafter | 30,416 |
Total | 151,473 |
Less: Imputed interest | (41,963) |
Operating lease liabilities | 109,510 |
Related-Party | |
Lessee, Lease, Description [Line Items] | |
Remainder of 2020 | 2,809 |
2021 | 3,767 |
2022 | 3,661 |
2023 | 1,316 |
2024 | 962 |
2025 | 861 |
Thereafter | 2,655 |
Total | 16,031 |
Less: Imputed interest | (3,826) |
Operating lease liabilities | $ 12,205 |
DISCONTINUED OPERATIONS - Narra
DISCONTINUED OPERATIONS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income tax benefit related to disposition | $ (98) | $ 47,423 | |
U.K. Segment | Discontinued Operations, Disposed of by Means Other than Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
(Gain) loss on disposition | (390) | 39,414 | |
Income tax benefit related to disposition | $ (98) | $ 46,600 | $ 47,423 |
DISCONTINUED OPERATIONS - Sched
DISCONTINUED OPERATIONS - Schedules of Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | |
Income Statement Disclosures | |||
Pre-tax income (loss) from operations of discontinued operations | $ 390 | $ (39,048) | |
Income tax expense (benefit) related to disposition | 98 | (47,423) | |
Net income from discontinued operations | 292 | 8,375 | |
Cash Flow Disclosures | |||
Net cash provided by (used in) discontinued operating activities | 390 | (504) | |
Net cash used in discontinued investing activities | 0 | (14,213) | |
U.K. Segment | Discontinued Operations, Disposed of by Means Other than Sale | |||
Income Statement Disclosures | |||
Revenue | 0 | 6,957 | |
Provision for losses | 0 | 1,703 | |
Net revenue | 0 | 5,254 | |
Office | 0 | 246 | |
Other costs of providing services | 0 | 61 | |
Advertising | 0 | 775 | |
Cost of providing services | 0 | 1,082 | |
Gross margin | 0 | 4,172 | |
Corporate, district and other expenses | 0 | 3,810 | |
Interest income | 0 | (4) | |
(Gain) loss on disposition | (390) | 39,414 | |
Total operating (income) expense | (390) | 43,220 | |
Pre-tax income (loss) from operations of discontinued operations | 390 | (39,048) | |
Income tax expense (benefit) related to disposition | 98 | $ (46,600) | (47,423) |
Net income from discontinued operations | 292 | 8,375 | |
Cash Flow Disclosures | |||
Net cash provided by (used in) discontinued operating activities | 390 | (504) | |
Net cash used in discontinued investing activities | 0 | (14,213) | |
Net cash used in discontinued financing activities | $ 0 | $ 0 |
GOODWILL (Details)
GOODWILL (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 120,609 |
Acquisition | 14,791 |
Foreign currency translation | (2,575) |
Goodwill, ending balance | 132,825 |
U.S. | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 91,131 |
Acquisition | 14,791 |
Foreign currency translation | 0 |
Goodwill, ending balance | 105,922 |
Canada | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 29,478 |
Acquisition | 0 |
Foreign currency translation | (2,575) |
Goodwill, ending balance | $ 26,903 |
ACQUISITION - Narrative (Detail
ACQUISITION - Narrative (Details) - USD ($) $ in Thousands | Jan. 03, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Acquisition of Ad Astra, net of cash received | $ 14,418 | $ 0 | ||
Other costs of providing services | 9,655 | 14,220 | ||
Operating expense | (61,749) | (66,778) | ||
Goodwill | $ 14,800 | 132,825 | $ 120,609 | |
Ad Astra | ||||
Business Acquisition [Line Items] | ||||
Equity interests acquired | 100.00% | |||
Acquisition of Ad Astra, net of cash received | $ 14,400 | |||
Other costs of providing services | $ 4,700 | |||
Operating expense | $ (3,500) | |||
Goodwill | $ 14,791 |
ACQUISITION - Schedule of Asset
ACQUISITION - Schedule of Assets and Liabilities Acquired and Assumed (Details) - USD ($) $ in Thousands | Jan. 03, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||
Goodwill | $ 14,800 | $ 132,825 | $ 120,609 |
Ad Astra | |||
Business Acquisition [Line Items] | |||
Cash consideration transferred: | 17,811 | ||
Cash and cash equivalents | 3,360 | ||
Accounts receivable | 465 | ||
Property and equipment | 358 | ||
Intangible assets | 1,101 | ||
Goodwill | 14,791 | ||
Operating lease asset | 235 | ||
Accounts payable and accrued liabilities | (2,264) | ||
Operating lease liabilities | (235) | ||
Total | $ 17,811 |
SHARE REPURCHASE PROGRAM (Detai
SHARE REPURCHASE PROGRAM (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Aug. 31, 2019 | Mar. 31, 2020 | Feb. 29, 2020 | Dec. 31, 2019 | Aug. 29, 2019 | Apr. 30, 2019 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Total number of shares repurchased (in shares) | 540,762 | |||||
Total value of shares repurchased | $ 5,509,000 | |||||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 | ||||
Repurchase Program, 2020 | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Total authorized repurchase amount for the period presented | $ 25,000,000 | |||||
Repurchase Program, 2019 | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Total authorized repurchase amount for the period presented | $ 50,000,000 | |||||
Total number of shares repurchased (in shares) | 455,255 | |||||
Average price paid per share (in dollars per share) | $ 10.45 | |||||
Total value of shares repurchased | $ 4,800,000 | |||||
Share Repurchase Agreement with FFL | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Closing common stock price (in usd per share) | $ 13.97 | |||||
Discount | 3.00% | |||||
Share Repurchase Agreement with FFL | Affiliated Entity | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Total number of shares repurchased (in shares) | 2,000,000 | |||||
Average price paid per share (in dollars per share) | $ 13.55 | |||||
Common stock, par value (in usd per share) | $ 0.001 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 08, 2020 | Apr. 30, 2020 | Feb. 05, 2020 |
Subsequent Event [Line Items] | |||
Quarterly cash dividend (in dollars per share) | $ 0.055 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Quarterly cash dividend (in dollars per share) | $ 0.055 | ||
Non-Recourse U.S. SPV Facility | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 100 | ||
Proceeds from credit facilities | $ 35.2 |