Elevate Credit announces strong second quarter earnings growth
Names Jason Harvison as Interim CEO
FORT WORTH, Texas–(BUSINESS WIRE)–Elevate Credit, Inc. (NYSE: ELVT) (“Elevate” or the “Company”), a leading tech-enabled provider of innovative and responsible online credit solutions for non-prime consumers, today announced results for the second quarter ended June 30, 2019. The Company grew year-over-year net income by approximately 87%, primarily due to improved credit quality and lower customer acquisition costs. Additionally, the Company announced the resignation of CEO Ken Rees. Jason Harvison has been named as interim CEO, and Saundra Schrock as Chairman of the Board of Directors. Ken Rees will remain on the Elevate Board.
“Elevate continues to deliver strong earnings growth as a result of new underwriting models and strategies that have significantly reduced both fraud and credit losses” said outgoing CEO Ken Rees. “We remain on track to double net income for the second straight year. On a personal note, I have decided now is a good time to step aside as CEO. I am very proud to have led Elevate during this period of growth and transformation alongside Jason Harvison and the rest of the incredible leadership team. I look forward to continuing to serve on the Elevate Board of Directors.”
“On behalf of the Board and the Company, I want to thank Ken for his contributions to Elevate’s success,” said Saundra Schrock, Chairman of the Board. “I am confident the leadership transition will be seamless. The world-class leadership at Elevate, led by interim CEO Jason Harvison, is well-positioned to achieve even greater levels of earnings growth and shareholder value.”
“I am honored to have the opportunity to lead Elevate and build on the successes of the past few years as a public company,” said interim CEO Jason Harvison. “Thus far in 2019, we have delivered excellent performance with net income significantly higher than all of 2018. In the second half of the year, we intend to continue our focus on building a strong foundation for measured growth, further improving credit quality, and delivering value to our shareholders.”
Second Quarter 2019 Financial Highlights1
- Net income: Net income for the three months ended June 30, 2019 totaled $5.8 million, up $2.7 million, or 87.1%, compared to $3.1 million in the second quarter of 2018. Fully diluted earnings per share for the second quarter of 2019 was $0.13, an increase from $0.07 per fully diluted share a year ago.
- Revenue: Revenues decreased 3.6% for the second quarter of 2019 totaling $177.8 million compared to $184.4 million for the second quarter of 2018 due to a decline in the effective APR of the combined loans receivable. Revenues less net charge-offs totaled $98.2 million for the second quarter of 2019, an increase of 6.0% from $92.6 million in the second quarter of 2018.
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__________________________ |
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1 Adjusted EBITDA, Adjusted EBITDA margin, combined loans receivable – principal, combined loans receivable, and combined loan loss reserve are non-GAAP financial measures. These terms are defined elsewhere in this release. Please see the schedules appearing later in this release for reconciliations of these non-GAAP measures to the most directly comparable GAAP measures. |
- Combined loans receivable – principal: Combined loans receivable – principal totaled $601.2 million, an increase of $11.7 million, or 2.0%, from $589.5 million for the prior-year quarter.
- Improving credit quality: The ending combined loan loss reserve, as a percentage of combined loans receivable, was 12.3%, lower than 12.9% reported for the prior-year period due to an improvement in credit quality and the continued maturation of the loan portfolio.
- Customer acquisition cost: The average customer acquisition cost was $229 in the second quarter of 2019, which is lower than the targeted range of $250-$300 and lower than $260 for the prior-year quarter. The total number of new customer loans decreased from approximately 85,000 in the second quarter of 2018 to 71,000 in the second quarter of 2019.
- Adjusted EBITDA margin: Adjusted EBITDA increased to $33.9 million, up 18.0% from $28.7 million in the second quarter of 2018. The Adjusted EBITDA margin for the second quarter of 2019 was 19.0%, up from 15.6% in the prior-year quarter.
Year-to-date 2019 Financial Highlights1
- Net income: Net income for the six months ended June 30, 2019 totaled $19.1 million, up $6.5 million, or 51.6%, compared to $12.6 million in the first half of 2018. Fully diluted earnings per share was $0.43, an increase from $0.29 fully diluted per share a year ago.
- Revenue: Revenues decreased 2.8% for the first half of 2019 totaling $367.3 million compared to $377.9 million for the first half of 2018 due to a decline in the effective APR of the combined loans receivable. Revenues less net charge-offs totaled $183.7 million for the first six months of 2019, down slightly from $184.1 million for the first six months of 2018.
- Customer acquisition cost: The average customer acquisition cost was $226 in the first half of 2019, which is lower than the targeted range of $250-$300 and lower than $276 for the first half of 2018. The total number of new customer loans decreased from approximately 155,000 in the first half of 2018 to 121,000 in the first half of 2019.
- Adjusted EBITDA margin: Adjusted EBITDA increased to $78.5 million, up 19.6% from $65.7 million in the first half of 2018. The Adjusted EBITDA margin for the first half of 2019 was 21.4%, up from 17.4% in the prior-year.
Liquidity and Capital Resources
The Company repaid $17.0 million in subordinated debt early during the second quarter of 2019. As previously disclosed in a press release issued on February 11, 2019, the Company announced amendments to the credit facilities for its four products with Victory Park Capital.
Additionally, the Company’s Board of Directors authorized a share repurchase program providing for the repurchase of up to $10 million of our common stock through July 31, 2024. Repurchases will be made in accordance with applicable securities laws from time-to-time in the open market and/or in privately negotiated transactions at our discretion, subject to market conditions and other factors. The stock buyback plan does not require the purchase of any minimum number of shares and may be implemented, modified, suspended or discontinued in whole or in part at any time without further notice. Any repurchased shares will be available for use in connection with equity plans and for other corporate purposes.
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__________________________ |
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1 Adjusted EBITDA, Adjusted EBITDA margin, combined loans receivable – principal and combined loans receivable are non-GAAP financial measures. These terms are defined elsewhere in this release. Please see the schedules appearing later in this release for reconciliations of these non-GAAP measures to the most directly comparable GAAP measures. |
Financial Outlook
The Company is revising the full year 2019 revenue guidance down while leaving the net income, diluted earnings per share and Adjusted EBITDA guidance unchanged. For the full year 2019, the Company expects total revenue of $750 million to $770 million, net income of $25 million to $30 million, or $0.55 to $0.65 in diluted earnings per share, and Adjusted EBITDA of $130 million to $140 million.
Conference Call
The Company will host a conference call to discuss its second quarter 2019 financial results on Monday, July 29th at 4:00pm Central Time / 5:00pm Eastern Time. Interested parties may access the conference call live over the phone by dialing 1-877-407-0792 (domestic) or 1-201-689-8263 (international) and requesting the Elevate Credit Second Quarter 2019 Earnings Conference Call. Participants are asked to dial in a few minutes prior to the call to register for the event. The conference call will also be webcast live through Elevate’s website at http://www.elevate.com/investors.
An audio replay of the conference call will be available approximately three hours after the conference call until 11:59 pm ET on August 12, 2019, and can be accessed by dialing 1-844-512-2921 (domestic) or 1-412-317-6671 (international), and providing the passcode 13692053, or by accessing Elevate’s website.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements contain words such as “may,” “will,” “might,” “expect,” “believe,” “anticipate,” “could,” “would,” “estimate,” “continue,” “pursue,” or the negative thereof or comparable terminology, and may include (without limitation) information regarding the Company’s expectations, goals or intentions regarding future performance. These statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “will,” “should,” “likely” and other words and terms of similar meaning. The forward-looking statements include statements regarding: our expectations of future financial performance including our outlook for full fiscal year 2019 (including all statements under the heading “Financial Outlook”); our potential to drive long-term earnings growth; our expectation of continued strong earnings through 2019 and that we will see the added benefit from new credit models and reduced cost of capital; and the Company’s targeted customer acquisition cost range of $250-$300. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. These risks and uncertainties include, but are not limited to: the Company’s limited operating history in an evolving industry; new laws and regulations in the consumer lending industry in many jurisdictions that could restrict the consumer lending products and services the Company offers, impose additional compliance costs on the Company, render the Company’s current operations unprofitable or even prohibit the Company’s current operations; scrutiny by regulators and payment processors of certain online lenders’ access to the Automated Clearing House system to disburse and collect loan proceeds and repayments; a lack of sufficient debt financing at acceptable prices or disruptions in the credit markets; the impact of competition in our industry and innovation by our competitors; our ability to prevent security breaches, disruption in service and comparable events that could compromise the personal and confidential information held in our data systems, reduce the attractiveness of our platform or adversely impact our ability to service loans; and other risks related to litigation, compliance and regulation. Additional factors that could cause actual results to differ are discussed under the heading “Risk Factors” and in other sections of the Company’s most recent Annual Report on Form 10-K, and in the Company’s other current and periodic reports filed from time to time with the SEC. All forward-looking statements in this press release are made as of the date hereof, based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement.
About Elevate
Elevate (NYSE: ELVT), together with its bank partners, has originated $7.4 billion in non-prime credit to more than 2.3 million non-prime consumers to date and has saved its customers more than $5.6 billion versus the cost of payday loans. Its responsible, tech-enabled online credit solutions provide immediate relief to customers today and help them build a brighter financial future. The company is committed to rewarding borrowers’ good financial behavior with features like interest rates that can go down over time, free financial training and free credit monitoring. Elevate’s suite of groundbreaking credit products includes RISE, Elastic, Sunny and Today Card. For more information, please visit http://www.elevate.com.
|
Elevate Credit, Inc. and Subsidiaries |
||||||||||||||||
|
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
(Dollars in thousands, except share and per share amounts) |
2019 |
|
2018 |
|
2019 |
|
2018 |
|||||||||
|
Revenues |
|
$ |
177,760 |
|
|
$ |
184,377 |
|
|
$ |
367,264 |
|
|
$ |
377,914 |
|
|
Cost of sales: |
|
|
|
|
|
|
|
|
||||||||
|
Provision for loan losses |
|
78,025 |
|
|
88,598 |
|
|
165,456 |
|
|
180,740 |
|
||||
|
Direct marketing costs |
|
16,194 |
|
|
22,180 |
|
|
27,348 |
|
|
42,875 |
|
||||
|
Other cost of sales |
|
8,562 |
|
|
6,566 |
|
|
13,622 |
|
|
12,895 |
|
||||
|
Total cost of sales |
|
102,781 |
|
|
117,344 |
|
|
206,426 |
|
|
236,510 |
|
||||
|
Gross profit |
|
74,979 |
|
|
67,033 |
|
|
160,838 |
|
|
141,404 |
|
||||
|
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
|
Compensation and benefits |
|
25,638 |
|
|
23,380 |
|
|
51,348 |
|
|
45,807 |
|
||||
|
Professional services |
|
8,860 |
|
|
8,374 |
|
|
18,559 |
|
|
16,686 |
|
||||
|
Selling and marketing |
|
2,205 |
|
|
2,403 |
|
|
4,051 |
|
|
5,355 |
|
||||
|
Occupancy and equipment |
|
5,179 |
|
|
4,630 |
|
|
10,231 |
|
|
8,749 |
|
||||
|
Depreciation and amortization |
|
4,324 |
|
|
2,962 |
|
|
8,590 |
|
|
5,677 |
|
||||
|
Other |
|
1,710 |
|
|
1,568 |
|
|
3,017 |
|
|
2,785 |
|
||||
|
Total operating expenses |
|
47,916 |
|
|
43,317 |
|
|
95,796 |
|
|
85,059 |
|
||||
|
Operating income |
|
27,063 |
|
|
23,716 |
|
|
65,042 |
|
|
56,345 |
|
||||
|
Other expense: |
|
|
|
|
|
|
|
|
||||||||
|
Net interest expense |
|
(17,947 |
) |
|
(19,263 |
) |
|
(37,166 |
) |
|
(38,476 |
) |
||||
|
Foreign currency transaction loss |
|
(710 |
) |
|
(1,231 |
) |
|
(97 |
) |
|
(475 |
) |
||||
|
Non-operating loss |
|
— |
|
|
— |
|
|
— |
|
|
(38 |
) |
||||
|
Total other expense |
|
(18,657 |
) |
|
(20,494 |
) |
|
(37,263 |
) |
|
(38,989 |
) |
||||
|
Income before taxes |
|
8,406 |
|
|
3,222 |
|
|
27,779 |
|
|
17,356 |
|
||||
|
Income tax expense |
|
2,634 |
|
|
94 |
|
|
8,649 |
|
|
4,745 |
|
||||
|
Net income |
|
$ |
5,772 |
|
|
$ |
3,128 |
|
|
$ |
19,130 |
|
|
$ |
12,611 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Basic income per share |
|
$ |
0.13 |
|
|
$ |
0.07 |
|
|
$ |
0.44 |
|
|
$ |
0.30 |
|
|
Diluted income per share |
|
$ |
0.13 |
|
|
$ |
0.07 |
|
|
$ |
0.43 |
|
|
$ |
0.29 |
|
|
Basic weighted average shares outstanding |
|
43,681,159 |
|
|
42,561,403 |
|
|
43,514,862 |
|
|
42,386,660 |
|
||||
|
Diluted weighted average shares outstanding |
|
44,291,816 |
|
|
44,239,007 |
|
|
44,142,947 |
|
|
43,937,066 |
|
||||
|
Elevate Credit, Inc. and Subsidiaries |
||||||||
|
(Dollars in thousands) |
|
June 30, 2019 |
|
December 31, 2018 |
||||
|
ASSETS |
|
|
|
|
||||
|
Cash and cash equivalents* |
|
$ |
63,399 |
|
|
$ |
58,313 |
|
|
Restricted cash. |
|
2,491 |
|
|
2,591 |
|
||
|
Loans receivable, net of allowance for loan losses of $75,896 and $91,608, respectively* |
|
535,405 |
|
|
561,694 |
|
||
|
Prepaid expenses and other assets* |
|
11,990 |
|
|
11,418 |
|
||
|
Operating lease right of use assets |
|
11,858 |
|
|
— |
|
||
|
Receivable from CSO lenders |
|
10,246 |
|
|
16,183 |
|
||
|
Receivable from payment processors* |
|
27,129 |
|
|
21,716 |
|
||
|
Deferred tax assets, net |
|
13,605 |
|
|
21,628 |
|
||
|
Property and equipment, net |
|
47,629 |
|
|
41,579 |
|
||
|
Goodwill |
|
16,027 |
|
|
16,027 |
|
||
|
Intangible assets, net |
|
1,462 |
|
|
1,712 |
|
||
|
Derivative assets, net* |
|
— |
|
|
412 |
|
||
|
Total assets |
|
$ |
741,241 |
|
|
$ |
753,273 |
|
|
|
|
|
|
|
||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
|
Accounts payable and accrued liabilities* |
|
$ |
41,445 |
|
|
$ |
44,950 |
|
|
Operating lease liabilities |
|
16,160 |
|
|
— |
|
||
|
State and other taxes payable |
|
1,222 |
|
|
681 |
|
||
|
Deferred revenue* |
|
15,246 |
|
|
28,261 |
|
||
|
Notes payable, net* |
|
527,237 |
|
|
562,590 |
|
||
|
Total liabilities |
|
601,310 |
|
|
636,482 |
|
||
|
COMMITMENTS, CONTINGENCIES AND GUARANTEES |
|
|
|
|
||||
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
|
Preferred stock |
|
— |
|
|
— |
|
||
|
Common stock |
|
18 |
|
|
18 |
|
||
|
Additional paid-in capital |
|
187,521 |
|
|
183,244 |
|
||
|
Accumulated deficit |
|
(47,395 |
) |
|
(66,525 |
) |
||
|
Accumulated other comprehensive income (loss) |
|
(213 |
) |
|
54 |
|
||
|
Total stockholders’ equity |
|
139,931 |
|
|
116,791 |
|
||
|
Total liabilities and stockholders’ equity |
|
$ |
741,241 |
|
|
$ |
753,273 |
|
| * These balances include certain assets and liabilities of variable interest entities (“VIEs”) that can only be used to settle the liabilities of that respective VIE. All assets of the Company are pledged as security for the Company’s outstanding debt, including debt held by the VIEs. |
Non-GAAP Financial Measures
This press release and the attached financial tables contain certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA margin, combined loans receivable – principal, combined loans receivable and combined loan loss reserve.
Adjusted EBITDA and Adjusted EBITDA margin
In addition to net income determined in accordance with GAAP, Elevate uses certain non-GAAP measures such as “Adjusted EBITDA” and “Adjusted EBITDA margin” in assessing its operating performance. Elevate believes these non-GAAP measures are appropriate measures to be used in evaluating the performance of its business.
Elevate defines Adjusted EBITDA as net income excluding the impact of income tax expense, non-operating loss, foreign currency transaction loss associated with our UK operations, net interest expense, share-based compensation expense and depreciation and amortization expense. Elevate defines Adjusted EBITDA margin as Adjusted EBITDA divided by revenue.
Management believes that Adjusted EBITDA and Adjusted EBITDA margin are useful supplemental measures to assist management and investors in analyzing the operating performance of the business and provide greater transparency into the results of operations of our core business. Management uses this non-GAAP financial measure frequently in its decision-making because it provides supplemental information that facilitates internal comparisons to the historical operating performance of prior periods and gives an additional indication of Elevate’s core operating performance. Elevate includes this non-GAAP financial measure in its earnings announcement in order to provide transparency to its investors and enable investors to better compare its operating performance with the operating performance of its competitors.
Adjusted EBITDA and Adjusted EBITDA margin should not be considered as alternatives to net income or any other performance measure derived in accordance with GAAP. Management’s use of Adjusted EBITDA and Adjusted EBITDA margin has limitations as an analytical tool, and investors should not consider it in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. Some of these limitations are:
- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect expected cash capital expenditure requirements for such replacements or for new capital assets;
- Adjusted EBITDA does not reflect changes in, or cash requirements for, the Company’s working capital needs; and
- Adjusted EBITDA does not reflect interest associated with notes payable used for funding customer loans, for other corporate purposes or tax payments that may represent a reduction in cash available to the Company.
Additionally, Elevate’s definition of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.
The Company’s Adjusted EBITDA guidance does not include certain charges and costs. The adjustments in future periods are generally expected to be similar to the kinds of charges and costs excluded from Adjusted EBITDA in prior periods. The Company is not able to provide a reconciliation of the Company’s non-GAAP financial guidance to the corresponding GAAP measure without unreasonable effort because of the uncertainty and variability of the nature and amount of these future charges and costs.
The following table presents a reconciliation of Adjusted EBITDA and Adjusted EBITDA margin to Elevate’s net income for the three and six months ended June 30, 2019 and 2018:
|
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
(Dollars in thousands) |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
|
Net income |
|
$ |
5,772 |
|
|
$ |
3,128 |
|
|
$ |
19,130 |
|
|
$ |
12,611 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
||||||||
|
Net interest expense |
|
17,947 |
|
|
19,263 |
|
|
37,166 |
|
|
38,476 |
|
||||
|
Share-based compensation |
|
2,476 |
|
|
2,010 |
|
|
4,911 |
|
|
3,647 |
|
||||
|
Foreign currency transaction loss |
|
710 |
|
|
1,231 |
|
|
97 |
|
|
475 |
|
||||
|
Depreciation and amortization |
|
4,324 |
|
|
2,962 |
|
|
8,590 |
|
|
5,677 |
|
||||
|
Non-operating loss |
|
— |
|
|
— |
|
|
— |
|
|
38 |
|
||||
|
Income tax expense |
|
2,634 |
|
|
94 |
|
|
8,649 |
|
|
4,745 |
|
||||
|
Adjusted EBITDA |
|
$ |
33,863 |
|
|
$ |
28,688 |
|
|
$ |
78,543 |
|
|
$ |
65,669 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted EBITDA margin |
|
19.0 |
% |
|
15.6 |
% |
|
21.4 |
% |
|
17.4 |
% |
||||
Supplemental Schedules
|
Revenue by Product |
||||||||||||||||||||
|
|
|
Three Months Ended June 30, 2019 |
||||||||||||||||||
|
(Dollars in thousands) |
|
Rise (US)(1) |
|
Elastic (US)(2) |
|
Total Domestic |
|
Sunny (UK) |
|
Total |
||||||||||
|
|
|
|
||||||||||||||||||
|
Average combined loans receivable – principal(3) |
|
$ |
287,073 |
|
|
$ |
243,691 |
|
|
$ |
530,764 |
|
|
$ |
50,173 |
|
|
$ |
580,937 |
|
|
Effective APR |
|
126 |
% |
|
98 |
% |
|
113 |
% |
|
219 |
% |
|
122 |
% |
|||||
|
Finance charges |
|
$ |
90,384 |
|
|
$ |
59,317 |
|
|
$ |
149,701 |
|
|
$ |
27,330 |
|
|
$ |
177,031 |
|
|
Other |
|
387 |
|
|
288 |
|
|
675 |
|
|
54 |
|
|
729 |
|
|||||
|
Total revenue |
|
$ |
90,771 |
|
|
$ |
59,605 |
|
|
$ |
150,376 |
|
|
$ |
27,384 |
|
|
$ |
177,760 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
Three Months Ended June 30, 2018 |
||||||||||||||||||
|
(Dollars in thousands) |
|
Rise (US)(1) |
|
Elastic (US) |
|
Total Domestic |
|
Sunny (UK) |
|
Total |
||||||||||
|
|
|
|
||||||||||||||||||
|
Average combined loans receivable – principal(3) |
|
$ |
277,281 |
|
|
$ |
244,583 |
|
|
$ |
521,864 |
|
|
$ |
52,092 |
|
|
$ |
573,956 |
|
|
Effective APR |
|
137 |
% |
|
97 |
% |
|
118 |
% |
|
226 |
% |
|
128 |
% |
|||||
|
Finance charges |
|
$ |
94,716 |
|
|
$ |
59,298 |
|
|
$ |
154,014 |
|
|
$ |
29,380 |
|
|
$ |
183,394 |
|
|
Other |
|
435 |
|
|
460 |
|
|
895 |
|
|
88 |
|
|
983 |
|
|||||
|
Total revenue |
|
$ |
95,151 |
|
|
$ |
59,758 |
|
|
$ |
154,909 |
|
|
$ |
29,468 |
|
|
$ |
184,377 |
|
|
(1) |
Includes loans originated by third-party lenders through the CSO programs, which are not included in the Company’s condensed consolidated financial statements. |
|
(2) |
Includes immaterial balances related to the Today Card, which expanded its test launch in November 2018. |
|
(3) |
Average combined loans receivable – principal is calculated using daily principal balances. See the “Combined Loan Information” section for a reconciliation of this non-GAAP measure to the most comparable GAAP measure. |
|
Revenue by Product, Continued |
||||||||||||||||||||
|
|
|
Six Months Ended June 30, 2019 |
||||||||||||||||||
|
(Dollars in thousands) |
|
Rise (US)(1) |
|
Elastic (US)(2) |
|
Total Domestic |
|
Sunny (UK) |
|
Total |
||||||||||
|
|
|
|
||||||||||||||||||
|
Average combined loans receivable – principal(3) |
|
$ |
288,941 |
|
|
$ |
254,980 |
|
|
$ |
543,921 |
|
|
$ |
51,254 |
|
|
$ |
595,174 |
|
|
Effective APR |
|
129 |
% |
|
98 |
% |
|
115 |
% |
|
223 |
% |
|
124 |
% |
|||||
|
Finance charges |
|
$ |
185,269 |
|
|
$ |
124,050 |
|
|
$ |
309,319 |
|
|
$ |
56,701 |
|
|
$ |
366,020 |
|
|
Other |
|
738 |
|
|
384 |
|
|
1,122 |
|
|
122 |
|
|
1,244 |
|
|||||
|
Total revenue |
|
$ |
186,007 |
|
|
$ |
124,434 |
|
|
$ |
310,441 |
|
|
$ |
56,823 |
|
|
$ |
367,264 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
Six Months Ended June 30, 2018 |
||||||||||||||||||
|
(Dollars in thousands) |
|
Rise (US)(1) |
|
Elastic (US) |
|
Total Domestic |
|
Sunny (UK) |
|
Total |
||||||||||
|
|
|
|
||||||||||||||||||
|
Average combined loans receivable – principal(3) |
|
$ |
289,565 |
|
|
$ |
244,980 |
|
|
$ |
534,545 |
|
|
$ |
51,970 |
|
|
$ |
586,515 |
|
|
Effective APR |
|
138 |
% |
|
97 |
% |
|
119 |
% |
|
231 |
% |
|
129 |
% |
|||||
|
Finance charges |
|
$ |
197,924 |
|
|
$ |
118,201 |
|
|
$ |
316,125 |
|
|
$ |
59,527 |
|
|
$ |
375,652 |
|
|
Other |
|
1,265 |
|
|
825 |
|
|
2,090 |
|
|
172 |
|
|
2,262 |
|
|||||
|
Total revenue |
|
$ |
199,189 |
|
|
$ |
119,026 |
|
|
$ |
318,215 |
|
|
$ |
59,699 |
|
|
$ |
377,914 |
|
|
(1) |
Includes loans originated by third-party lenders through the CSO programs, which are not included in the Company’s condensed consolidated financial statements. |
|
(2) |
Includes immaterial balances related to the Today Card, which expanded its test launch in November 2018. |
|
(3) |
Average combined loans receivable – principal is calculated using daily principal balances. See the “Combined Loan Information” section for a reconciliation of this non-GAAP measure to the most comparable GAAP measure. |
|
Loan Loss Reserve by Product |
||||||||||||||||||||
|
|
|
Three Months Ended June 30, 2019 |
||||||||||||||||||
|
(Dollars in thousands) |
|
Rise (US) |
|
Elastic (US)(1) |
|
Total Domestic |
|
Sunny (UK) |
|
Total |
||||||||||
|
|
|
|
||||||||||||||||||
|
Combined loan loss reserve(2): |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Beginning balance |
|
$ |
39,350 |
|
|
$ |
28,341 |
|
|
$ |
67,691 |
|
|
$ |
12,008 |
|
|
$ |
79,699 |
|
|
Net charge-offs |
|
(40,970 |
) |
|
(27,130 |
) |
|
(68,100 |
) |
|
(11,509 |
) |
|
(79,609 |
) |
|||||
|
Provision for loan losses |
|
43,013 |
|
|
25,268 |
|
|
68,281 |
|
|
9,744 |
|
|
78,025 |
|
|||||
|
Effect of foreign currency |
|
— |
|
|
— |
|
|
— |
|
|
(236 |
) |
|
(236 |
) |
|||||
|
Ending balance |
|
$ |
41,393 |
|
|
$ |
26,479 |
|
|
$ |
67,872 |
|
|
$ |
10,007 |
|
|
$ |
77,879 |
|
|
Combined loans receivable(2)(3) |
|
$ |
324,620 |
|
|
$ |
258,200 |
|
|
$ |
582,820 |
|
|
$ |
51,852 |
|
|
$ |
634,672 |
|
|
Combined loan loss reserve as a percentage of ending combined loans receivable |
|
13 |
% |
|
10 |
% |
|
12 |
% |
|
19 |
% |
|
12 |
% |
|||||
|
Net charge-offs as a percentage of revenues |
|
45 |
% |
|
46 |
% |
|
45 |
% |
|
42 |
% |
|
45 |
% |
|||||
|
Provision for loan losses as a percentage of revenues |
|
47 |
% |
|
42 |
% |
|
45 |
% |
|
36 |
% |
|
44 |
% |
|||||
Contacts
Investor Relations:
Solebury Trout
Sloan Bohlen, (817) 928-1646
[email protected]
or
Media Inquiries:
Vested
Ishviene Arora, (917) 765-8720
[email protected]
