Delaware | 90-0934597 | |||||||
(State or other jurisdiction Of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
3527 North Ridge Road, Wichita, KS | 67205 | |||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common stock, $0.001 par value per share | CURO | New York Stock Exchange |
Large accelerated filer | ☐ | Accelerated filer | ☒ | |||||||||||
Non-accelerated filer | ☐ | |||||||||||||
Smaller reporting company | ☒ | Emerging growth company | ☐ |
Page | ||||||||||||||||||||||||||||||||||||||||||||
Item 1. | Financial Statements (unaudited) | |||||||||||||||||||||||||||||||||||||||||||
June 30, | ||||||||||||||||||||||||||||||||||||||||||||
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Three and six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
Six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
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Item 6. | ||||||||||||||||||||||||||||||||||||||||||||
Term or abbreviation | Definition | |||||||
12.00% Senior Secured Notes | 12.00% Senior Secured Notes, issued in February and November 2017 for a total of $470.0 million due March 1, 2022, fully extinguished September 2018 | |||||||
2017 Final CFPB Rule | The final rule issued by the CFPB in 2017 in Payday, Vehicle Title and Certain high Cost Installment loans. | |||||||
2019 Proposed Rule | The subsequent CFPB rulemaking process which proposed to rescind the mandatory underwriting provisions of the 2017 Final CFPB Rule. | |||||||
2019 Form 10-K | Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on March 9, 2020. | |||||||
8.25% Senior Secured Notes | 8.25% Senior Secured Notes, issued in August 2018 for $690.0 million, which mature on September 1, 2025 | |||||||
Ad Astra | Ad Astra Recovery Services, Inc., our former provider of third-party collection services for the U.S. business that we acquired in January 2020 | |||||||
Adjusted EBITDA | EBITDA plus or minus certain non-cash and other adjusting items; Refer to "Supplemental Non-GAAP Financial Information" for additional details. | |||||||
Allowance coverage | Allowance for loan losses as a percentage of gross loans receivable | |||||||
AOCI | Accumulated Other Comprehensive Income (Loss) | |||||||
ASC | Accounting Standards Codification | |||||||
ASU | Accounting Standards Update | |||||||
Average gross loans receivable | Utilized to calculate product yield and NCO rates; calculated as average of beginning of quarter and end of quarter gross loans receivable | |||||||
Bps | Basis points | |||||||
CAB | Credit access bureau | |||||||
CARES Act | Coronavirus Aid, Relief, and Economic Security Act | |||||||
Cash Money | Cash Money Cheque Cashing Inc., a Canadian subsidiary | |||||||
Cash Money Revolving Credit Facility | C$10.0 million revolving credit facility with Royal Bank of Canada | |||||||
CECL | Current expected credit loss | |||||||
CFPB | Consumer Financial Protection Bureau | |||||||
CFTC | CURO Financial Technologies Corp., a wholly-owned subsidiary of the Company | |||||||
CODM | Chief Operating Decision Maker | |||||||
Condensed Consolidated Financial Statements | The unaudited condensed consolidated financial statements presented in this Form 10-Q | |||||||
COVID-19 | An infectious disease caused by the 2019 novel coronavirus | |||||||
CSO | Credit services organization | |||||||
EBITDA | Earnings Before Interest, Taxes, Depreciation and Amortization | |||||||
EPS | Earnings per share | |||||||
Exchange Act | Securities Exchange Act of 1934 | |||||||
FASB | Financial Accounting Standards Board | |||||||
FFL | Friedman Fleischer & Lowe Capital Partners II, L.P. and its affiliated investment funds, a related party to the Company | |||||||
Form 10-Q | Quarterly Report on Form 10-Q for the three and six months period ended June 30, 2020 | |||||||
Gross Combined Loans Receivable | Gross loans receivable plus loans originated by third-party lenders which are Guaranteed by the Company | |||||||
Guaranteed by the Company | Loans originated by third-party lenders through CSO program which we guarantee but are not include in the Condensed Consolidated Financial Statements | |||||||
Katapult | Cognical Holdings, Inc. (formerly known as Zibby), a private lease-to-own platform for online, brick and mortar and omni-channel retailers | |||||||
NCO | Net charge-off; total charge-offs less total recoveries | |||||||
NOL | Net operating loss | |||||||
Non-Recourse Canada SPV Facility | A four-year revolving credit facility with Waterfall Asset Management, LLC with capacity up to C$250.0 million | |||||||
Non-Recourse U.S. SPV Facility | A four year, asset-backed revolving credit facility with Atalaya Capital Management with capacity up to $200.0 million if certain conditions are met | |||||||
Term or abbreviation | Definition | |||||||
OCCC | Texas Office of Consumer Credit Commissioner | |||||||
ROU | Right of use | |||||||
RSU | Restricted Stock Unit | |||||||
SEC | Securities and Exchange Commission | |||||||
Senior Revolver | Senior Secured Revolving Loan Facility | |||||||
SRC | Smaller Reporting Company as defined by the SEC | |||||||
Stride Bank | In 2019, we partnered with Stride Bank, N.A. to launch a bank-sponsored Unsecured Installment loan originated by Stride Bank. We market and service loans on behalf of Stride Bank and the bank licenses our proprietary credit decisioning for Stride Bank's scoring and approval. | |||||||
TDR | Troubled Debt Restructuring. Debt restructuring in which a concession is granted to the borrower as a result of economic or legal reasons related to the borrower's financial difficulties. | |||||||
U.K. Subsidiaries | collectively, Curo Transatlantic Limited ("CTL") and SRC Transatlantic Limited | |||||||
U.S. | United States of America | |||||||
US GAAP | Generally accepted accounting principles in the United States | |||||||
VIE | Variable Interest Entity; our wholly-owned, bankruptcy-remote special purpose subsidiaries |
June 30, 2019 | December 31, 2018 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Cash | $ | 92,297 | $ | 61,175 | |||
Restricted cash (includes restricted cash of consolidated VIEs of $14,819 and $12,840 as of June 30, 2019 and December 31, 2018, respectively) | 33,712 | 25,439 | |||||
Gross loans receivable (includes loans of consolidated VIEs of $215,309 and $148,876 as of June 30, 2019 and December 31, 2018, respectively) | 609,593 | 571,531 | |||||
Less: allowance for loan losses (includes allowance for losses of consolidated VIEs of $25,188 and $12,688 as of June 30, 2019 and December 31, 2018, respectively) | (101,877 | ) | (73,997 | ) | |||
Loans receivable, net | 507,716 | 497,534 | |||||
Right of use asset - operating leases (Note 1) | 140,982 | — | |||||
Deferred income taxes | 2,637 | 1,534 | |||||
Income taxes receivable | 37,579 | 16,741 | |||||
Prepaid expenses and other | 30,241 | 43,588 | |||||
Property and equipment, net | 72,993 | 76,750 | |||||
Goodwill | 120,450 | 119,281 | |||||
Other intangibles, net of accumulated amortization | 30,657 | 29,784 | |||||
Other | 16,091 | 12,930 | |||||
Assets from discontinued operations (Note 15) | — | 34,861 | |||||
Total Assets | $ | 1,085,355 | $ | 919,617 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Accounts payable and accrued liabilities | $ | 59,274 | $ | 49,146 | |||
Deferred revenue | 8,712 | 9,483 | |||||
Lease liability - operating leases (Note 1) | 148,843 | — | |||||
Income taxes payable | — | 1,579 | |||||
Accrued interest (includes accrued interest of consolidated VIEs of $713 and $831 as of June 30, 2019 and December 31, 2018, respectively) | 19,690 | 20,904 | |||||
Liability for losses on CSO lender-owned consumer loans | 9,504 | 12,007 | |||||
Deferred rent | — | 10,851 | |||||
Long-term debt (includes long-term debt and issuance costs of consolidated VIEs of $94,565 and $3,588 as of June 30, 2019 and $111,335 and $3,856 as of December 31, 2018, respectively) | 768,512 | 804,140 | |||||
Subordinated stockholder debt | — | 2,196 | |||||
Other long-term liabilities | 8,594 | 5,800 | |||||
Deferred tax liabilities | 4,848 | 13,730 | |||||
Liabilities from discontinued operations (Note 15) | — | 8,882 | |||||
Total Liabilities | 1,027,977 | 938,718 | |||||
Commitments and contingencies (Note 13) | |||||||
Stockholders' Equity | |||||||
Preferred stock - $0.001 par value, 25,000,000 shares authorized; no shares were issued at either period end | — | — | |||||
Common stock - $0.001 par value; 225,000,000 shares authorized; 46,499,482 and 46,412,231 shares issued as of June 30, 2019 and December 31, 2018, respectively; and 46,255,282 and 46,412,231 shares outstanding as of June 30, 2019 and December 31, 2018, respectively | 9 | 9 | |||||
Treasury stock, at cost - 244,200 shares as of June 30, 2019 | (2,507 | ) | — | ||||
Paid-in capital | 64,790 | 60,015 | |||||
Retained earnings (accumulated deficit) | 35,816 | (18,065 | ) | ||||
Accumulated other comprehensive loss | (40,730 | ) | (61,060 | ) | |||
Total Stockholders' Equity | 57,378 | (19,101 | ) | ||||
Total Liabilities and Stockholders' Equity | $ | 1,085,355 | $ | 919,617 |
June 30, 2020 | December 31, 2019 | |||||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 269,342 | $ | 75,242 | ||||||||||||||||
Restricted cash (includes restricted cash of consolidated VIEs of $39,248 and $17,427 as of June 30, 2020 and December 31, 2019, respectively) | 63,274 | 34,779 | ||||||||||||||||||
Gross loans receivable (includes loans of consolidated VIEs of $290,828 and $244,492 as of June 30, 2020 and December 31, 2019, respectively) | 456,512 | 665,828 | ||||||||||||||||||
Less: allowance for loan losses (includes allowance for losses of consolidated VIEs of $47,988 and $24,425 as of June 30, 2020 and December 31, 2019, respectively) | (76,455) | (106,835) | ||||||||||||||||||
Loans receivable, net | 380,057 | 558,993 | ||||||||||||||||||
Income taxes receivable | 18,805 | 11,426 | ||||||||||||||||||
Prepaid expenses and other | 32,860 | 35,890 | ||||||||||||||||||
Property and equipment, net | 64,259 | 70,811 | ||||||||||||||||||
Right of use asset - operating leases | 111,860 | 117,453 | ||||||||||||||||||
Deferred tax assets | — | 5,055 | ||||||||||||||||||
Goodwill | 133,977 | 120,609 | ||||||||||||||||||
Other intangibles, net | 35,707 | 33,927 | ||||||||||||||||||
Other assets | 17,018 | 17,710 | ||||||||||||||||||
Total Assets | $ | 1,127,159 | $ | 1,081,895 | ||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||
Accounts payable and accrued liabilities (includes accounts payable and accrued liabilities of consolidated VIEs of $20,567 and $13,462 as of June 30, 2020 and December 31, 2019, respectively) | $ | 63,960 | $ | 60,083 | ||||||||||||||||
Deferred revenue | 4,974 | 10,170 | ||||||||||||||||||
Lease liability - operating leases | 119,767 | 124,999 | ||||||||||||||||||
Accrued interest (includes accrued interest of consolidated VIEs of $1,030 and $871 as of June 30, 2020 and December 31, 2019, respectively) | 20,005 | 19,847 | ||||||||||||||||||
Liability for losses on CSO lender-owned consumer loans | 5,164 | 10,623 | ||||||||||||||||||
Debt (includes debt and issuance costs of consolidated VIEs of $126,315 and $5,630 as of June 30, 2020 and $115,243 and $3,022 as of December 31, 2019, respectively) | 799,828 | 790,544 | ||||||||||||||||||
Other long-term liabilities | 11,461 | 10,664 | ||||||||||||||||||
Deferred tax liabilities | 9,058 | 4,452 | ||||||||||||||||||
Total Liabilities | 1,034,217 | 1,031,382 | ||||||||||||||||||
Commitments and contingencies (Note 13) | ||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||
Preferred stock - $0.001 par value, 25,000,000 shares authorized; 0 shares were issued | — | — | ||||||||||||||||||
Common stock - $0.001 par value; 225,000,000 shares authorized; 47,039,848 and 46,770,765 shares issued; and 40,884,545 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 | 74,079 | 68,087 | ||||||||||||||||||
Retained earnings | 147,301 | 93,423 | ||||||||||||||||||
Accumulated other comprehensive loss | (50,595) | (38,663) | ||||||||||||||||||
Total Stockholders' Equity | 92,942 | 50,513 | ||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 1,127,159 | $ | 1,081,895 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 264,300 | $ | 237,169 | $ | 542,239 | $ | 488,012 | Revenue | $ | 182,509 | $ | 264,300 | $ | 463,315 | $ | 542,239 | |||||||||||||||||||||||||||||||||
Provision for losses | 112,010 | 86,347 | 214,395 | 163,230 | Provision for losses | 50,693 | 112,010 | 164,229 | 214,395 | |||||||||||||||||||||||||||||||||||||||||
Net revenue | 152,290 | 150,822 | 327,844 | 324,782 | Net revenue | 131,816 | 152,290 | 299,086 | 327,844 | |||||||||||||||||||||||||||||||||||||||||
Cost of providing services | Cost of providing services | |||||||||||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | 26,086 | 26,908 | 54,787 | 53,826 | Salaries and benefits | 24,723 | 26,086 | 50,730 | 54,787 | |||||||||||||||||||||||||||||||||||||||||
Occupancy | 13,932 | 13,320 | 28,169 | 26,747 | Occupancy | 13,043 | 13,932 | 27,059 | 28,169 | |||||||||||||||||||||||||||||||||||||||||
Office | 5,457 | 5,532 | 10,570 | 11,985 | Office | 3,800 | 5,457 | 9,474 | 10,570 | |||||||||||||||||||||||||||||||||||||||||
Other costs of providing services | 12,854 | 12,601 | 27,074 | 26,032 | Other costs of providing services | 8,001 | 12,854 | 17,656 | 27,074 | |||||||||||||||||||||||||||||||||||||||||
Advertising | 12,780 | 15,113 | 20,566 | 22,998 | Advertising | 5,750 | 12,780 | 17,969 | 20,566 | |||||||||||||||||||||||||||||||||||||||||
Total cost of providing services | 71,109 | 73,474 | 141,166 | 141,588 | Total cost of providing services | 55,317 | 71,109 | 122,888 | 141,166 | |||||||||||||||||||||||||||||||||||||||||
Gross margin | 81,181 | 77,348 | 186,678 | 183,194 | Gross margin | 76,499 | 81,181 | 176,198 | 186,678 | |||||||||||||||||||||||||||||||||||||||||
Operating expense | Operating expense | |||||||||||||||||||||||||||||||||||||||||||||||||
Corporate, district and other expenses | 39,038 | 32,980 | 88,126 | 68,409 | Corporate, district and other expenses | 36,781 | 35,290 | 79,588 | 84,378 | |||||||||||||||||||||||||||||||||||||||||
Interest expense | 17,023 | 20,472 | 34,713 | 42,826 | Interest expense | 18,311 | 17,023 | 35,635 | 34,713 | |||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | — | — | — | 11,683 | ||||||||||||||||||||||||||||||||||||||||||||||
(Gain) loss from equity method investment | (Gain) loss from equity method investment | (741) | 3,748 | 877 | 3,748 | |||||||||||||||||||||||||||||||||||||||||||||
Total operating expense | 56,061 | 53,452 | 122,839 | 122,918 | Total operating expense | 54,351 | 56,061 | 116,100 | 122,839 | |||||||||||||||||||||||||||||||||||||||||
Income from continuing operations before income taxes | 25,120 | 23,896 | 63,839 | 60,276 | Income from continuing operations before income taxes | 22,148 | 25,120 | 60,098 | 63,839 | |||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | 7,453 | 5,178 | 17,499 | 16,645 | Provision for income taxes | 1,068 | 7,453 | 3,005 | 17,499 | |||||||||||||||||||||||||||||||||||||||||
Net income from continuing operations | 17,667 | 18,718 | 46,340 | 43,631 | Net income from continuing operations | 21,080 | 17,667 | 57,093 | 46,340 | |||||||||||||||||||||||||||||||||||||||||
Net (loss) income from discontinued operations, net of tax | (834 | ) | (2,743 | ) | 7,541 | (4,364 | ) | |||||||||||||||||||||||||||||||||||||||||||
Net income (loss) from discontinued operations, before income tax | Net income (loss) from discontinued operations, before income tax | 1,324 | — | 1,714 | (39,048) | |||||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) related to disposition | Income tax expense (benefit) related to disposition | 331 | 834 | $ | 429 | $ | (46,589) | |||||||||||||||||||||||||||||||||||||||||||
Net income (loss) from discontinued operations | Net income (loss) from discontinued operations | 993 | (834) | $ | 1,285 | $ | 7,541 | |||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 16,833 | $ | 15,975 | $ | 53,881 | $ | 39,267 | Net income | $ | 22,073 | $ | 16,833 | $ | 58,378 | $ | 53,881 | |||||||||||||||||||||||||||||||||
Basic earnings (loss) per share: | Basic earnings (loss) per share: | |||||||||||||||||||||||||||||||||||||||||||||||||
Continuing operations | Continuing operations | $ | 0.52 | $ | 0.38 | $ | 1.40 | $ | 1.00 | |||||||||||||||||||||||||||||||||||||||||
Discontinued operations | Discontinued operations | 0.02 | (0.02) | 0.03 | 0.16 | |||||||||||||||||||||||||||||||||||||||||||||
Basic earnings per share | Basic earnings per share | $ | 0.54 | $ | 0.36 | $ | 1.43 | $ | 1.16 | |||||||||||||||||||||||||||||||||||||||||
Diluted earnings (loss) per share: | Diluted earnings (loss) per share: | |||||||||||||||||||||||||||||||||||||||||||||||||
Continuing operations | Continuing operations | $ | 0.51 | $ | 0.38 | $ | 1.37 | $ | 0.98 | |||||||||||||||||||||||||||||||||||||||||
Discontinued operations | Discontinued operations | 0.02 | (0.02) | 0.03 | 0.16 | |||||||||||||||||||||||||||||||||||||||||||||
Diluted earnings per share | Diluted earnings per share | $ | 0.53 | $ | 0.36 | $ | 1.40 | $ | 1.14 | |||||||||||||||||||||||||||||||||||||||||
Weighted average common shares outstanding: | Weighted average common shares outstanding: | |||||||||||||||||||||||||||||||||||||||||||||||||
Basic | 46,451 | 45,650 | 46,438 | 45,578 | Basic | 40,810 | 46,451 | 40,814 | 46,438 | |||||||||||||||||||||||||||||||||||||||||
Diluted | 47,107 | 47,996 | 47,335 | 47,757 | Diluted | 41,545 | 47,107 | 41,686 | 47,335 | |||||||||||||||||||||||||||||||||||||||||
Basic income (loss) per share: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Continuing operations | $ | 0.38 | $ | 0.41 | $ | 1.00 | $ | 0.96 | ||||||||||||||||||||||||||||||||||||||||||
Discontinued operations | (0.02 | ) | (0.06 | ) | 0.16 | (0.10 | ) | |||||||||||||||||||||||||||||||||||||||||||
Basic income per share | $ | 0.36 | $ | 0.35 | $ | 1.16 | $ | 0.86 | ||||||||||||||||||||||||||||||||||||||||||
Diluted income (loss) per share: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Continuing operations | $ | 0.38 | $ | 0.39 | $ | 0.98 | $ | 0.92 | ||||||||||||||||||||||||||||||||||||||||||
Discontinued operations | (0.02 | ) | (0.06 | ) | 0.16 | (0.10 | ) | |||||||||||||||||||||||||||||||||||||||||||
Diluted income per share | $ | 0.36 | $ | 0.33 | $ | 1.14 | $ | 0.82 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Net income | $ | 22,073 | $ | 16,833 | $ | 58,378 | $ | 53,881 | |||||||||||||||||||||||||||
Other comprehensive (loss) income: | |||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of $0 tax in both periods | 10,261 | 3,635 | (11,932) | 20,330 | |||||||||||||||||||||||||||||||
Other comprehensive (loss) income | 10,261 | 3,635 | (11,932) | 20,330 | |||||||||||||||||||||||||||||||
Comprehensive income | $ | 32,334 | $ | 20,468 | $ | 46,446 | $ | 74,211 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income | $ | 16,833 | $ | 15,975 | $ | 53,881 | $ | 39,267 | |||||||
Other comprehensive income (loss): | |||||||||||||||
Cash flow hedges, net of $0 tax in both periods | — | (439 | ) | — | (385 | ) | |||||||||
Foreign currency translation adjustment, net of $0 tax in both periods | 3,635 | (6,752 | ) | 20,330 | (9,663 | ) | |||||||||
Other comprehensive income (loss) | 3,635 | (7,191 | ) | 20,330 | (10,048 | ) | |||||||||
Comprehensive income | $ | 20,468 | $ | 8,784 | $ | 74,211 | $ | 29,219 |
Six Months Ended June 30, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net income from continuing operations | $ | 57,093 | $ | 46,340 | ||||||||||||||||
Adjustments to reconcile net income to net cash provided by continuing operating activities: | ||||||||||||||||||||
Depreciation and amortization | 8,954 | 9,571 | ||||||||||||||||||
Provision for loan losses | 164,229 | 214,395 | ||||||||||||||||||
Amortization of debt issuance costs and bond discount | 1,600 | 1,568 | ||||||||||||||||||
Deferred income tax (benefit) expense | 9,861 | (3,596) | ||||||||||||||||||
Loss on disposal of property and equipment | 116 | 1,834 | ||||||||||||||||||
Loss from equity method investment | 877 | 3,748 | ||||||||||||||||||
Share-based compensation | 6,504 | 4,816 | ||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||
Accrued interest on loans receivable | 28,654 | (1,171) | ||||||||||||||||||
Prepaid expenses and other assets | 3,286 | 16,344 | ||||||||||||||||||
Other assets | 99 | (6,893) | ||||||||||||||||||
Accounts payable and accrued liabilities | 965 | 9,527 | ||||||||||||||||||
Deferred revenue | (5,040) | (915) | ||||||||||||||||||
Income taxes payable | — | 25,123 | ||||||||||||||||||
Income taxes receivable | (7,413) | (8,253) | ||||||||||||||||||
Accrued interest | 200 | (1,247) | ||||||||||||||||||
Other liabilities | 815 | 1,128 | ||||||||||||||||||
Net cash provided by continuing operating activities | 270,800 | 312,319 | ||||||||||||||||||
Net cash provided by (used in) discontinued operating activities | 1,714 | (504) | ||||||||||||||||||
Net cash provided by operating activities | 272,514 | 311,815 | ||||||||||||||||||
Cash flows from investing activities | ||||||||||||||||||||
Purchase of property and equipment | (4,724) | (6,164) | ||||||||||||||||||
Loans receivable originated or acquired | (648,044) | (879,081) | ||||||||||||||||||
Loans receivable repaid | 616,223 | 661,882 | ||||||||||||||||||
Investments in Katapult | — | (4,368) | ||||||||||||||||||
Acquisition of Ad Astra, net of acquiree's cash received | (14,418) | — | ||||||||||||||||||
Net cash used in continuing investing activities | (50,963) | (227,731) | ||||||||||||||||||
Net cash used in discontinued investing activities | — | (14,213) | ||||||||||||||||||
Net cash used in investing activities | (50,963) | (241,944) | ||||||||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Proceeds from Non-Recourse U.S. SPV facility | 35,206 | — | ||||||||||||||||||
Proceeds from Non-Recourse Canada SPV facility | 23,180 | 3,750 | ||||||||||||||||||
Payments on Non-Recourse Canada SPV facility | (41,812) | (24,752) | ||||||||||||||||||
Debt issuance costs paid | (3,531) | (198) | ||||||||||||||||||
Proceeds from credit facilities | 69,778 | 68,002 | ||||||||||||||||||
Payments on credit facilities | (69,778) | (88,002) | ||||||||||||||||||
Payments on subordinated stockholder debt | — | (2,245) | ||||||||||||||||||
Proceeds from exercise of stock options | 126 | 27 | ||||||||||||||||||
Payments to net share settle restricted stock units vesting | (638) | — | ||||||||||||||||||
Repurchase of common stock | (5,908) | (1,762) | ||||||||||||||||||
Dividends paid to stockholders | (4,500) | — | ||||||||||||||||||
Net cash provided by (used in) financing activities (1) | 2,123 | (45,180) | ||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,079) | 1,461 | ||||||||||||||||||
Net increase in cash, cash equivalents and restricted cash | 222,595 | 26,152 | ||||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 110,021 | 99,857 | ||||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 332,616 | $ | 126,009 | ||||||||||||||||
(1) Financing activities were not impacted by discontinued operations |
Six Months Ended June 30, | |||||||
2019 | 2018 | ||||||
Cash flows from operating activities | |||||||
Net income from continuing operations | $ | 46,340 | $ | 43,631 | |||
Adjustments to reconcile net income to net cash provided by continuing operating activities: | |||||||
Depreciation and amortization | 9,571 | 9,005 | |||||
Provision for loan losses | 214,395 | 163,230 | |||||
Amortization of debt issuance costs and bond (premium)/discount | 1,568 | 2,117 | |||||
Deferred income tax (benefit) expense | (3,596 | ) | 3,199 | ||||
Loss on disposal of property and equipment | 1,834 | 517 | |||||
Loss on extinguishment of debt | — | 11,683 | |||||
Increase in cash surrender value of life insurance | (991 | ) | (2,223 | ) | |||
Share-based compensation expense | 4,816 | 4,023 | |||||
Changes in operating assets and liabilities: | |||||||
Accrued fees and service charges on loans receivable | (1,171 | ) | 2,928 | ||||
Prepaid expenses and other assets | 16,344 | 5,853 | |||||
Other assets | (3,790 | ) | — | ||||
Accounts payable and accrued liabilities | 9,527 | (2,080 | ) | ||||
Deferred revenue | (915 | ) | (1,193 | ) | |||
Income taxes payable | 25,123 | 26,727 | |||||
Income taxes receivable | (8,253 | ) | (18,436 | ) | |||
Deferred rent | — | 127 | |||||
Accrued Interest | (1,247 | ) | (3,284 | ) | |||
Other liabilities | 2,764 | 909 | |||||
Net cash provided by continuing operating activities | 312,319 | 246,733 | |||||
Net cash (used in) provided by discontinued operating activities | (504 | ) | 5,458 | ||||
Net cash provided by operating activities | 311,815 | 252,191 | |||||
Cash flows from investing activities | |||||||
Purchase of property, equipment and software | (6,164 | ) | (2,957 | ) | |||
Loans receivable originated or acquired | (879,081 | ) | (1,063,072 | ) | |||
Loans receivable repaid | 661,882 | 868,436 | |||||
Investments in Cognical Holdings | (4,368 | ) | (958 | ) | |||
Net cash used in continuing investing activities | (227,731 | ) | (198,551 | ) | |||
Net cash used in discontinued investing activities | (14,213 | ) | (14,349 | ) | |||
Net cash used in investing activities | (241,944 | ) | (212,900 | ) | |||
Cash flows from financing activities | |||||||
Net proceeds from issuance of common stock | — | 12,431 | |||||
Proceeds from Non-Recourse U.S. SPV facility | — | 13,000 | |||||
Payments on Non-Recourse U.S. SPV facility | — | (19,163 | ) | ||||
Proceeds from Non-Recourse Canada SPV facility | 3,750 | — | |||||
Payments on Non-Recourse Canada SPV facility | (24,752 | ) | — | ||||
Payments on 12.00% Senior Secured Notes | — | (77,500 | ) | ||||
Debt issuance costs paid | (198 | ) | (168 | ) | |||
Proceeds from credit facilities | 68,002 | 18,798 | |||||
Payments on credit facilities | (88,002 | ) | (18,798 | ) | |||
Payments on subordinated stockholder debt | (2,245 | ) | — | ||||
Payments of call premiums from early debt extinguishments | — | (9,300 | ) | ||||
Proceeds from exercise of stock options | 27 | 39 | |||||
Repurchase of common stock | (1,762 | ) | — | ||||
Net cash used in financing activities (1) | (45,180 | ) | (80,661 | ) |
June 30, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
Cash and cash equivalents | $ | 269,342 | $ | 92,297 | ||||||||||||||||
Restricted cash (includes restricted cash of consolidated VIEs of $39,248 and $14,819 as of June 30, 2020 and June 30, 2019, respectively) | 63,274 | 33,712 | ||||||||||||||||||
Total cash, cash equivalents and restricted cash used in the Statement of Cash Flows | $ | 332,616 | $ | 126,009 | ||||||||||||||||
Effect of exchange rate changes on cash and restricted cash | 1,461 | (4,189 | ) | ||||
Net increase (decrease) in cash and restricted cash | 26,152 | (45,559 | ) | ||||
Cash and restricted cash at beginning of period | 99,857 | 174,491 | |||||
Cash and restricted cash at end of period | 126,009 | 128,932 | |||||
Less: Cash and restricted cash of discontinued operations at end of period | — | 12,460 | |||||
Cash and restricted cash of continuing operations at end of period | $ | 126,009 | $ | 116,472 | |||
(1) Financing activities include continuing operations only, and were not impacted by discontinued operations |
(dollars in thousands) | Six Months Ended June 30, 2018 | |||
As Reported:(1) | ||||
Net cash provided by continuing operating activities | $ | 52,097 | ||
Net cash used in continuing investing activities | (3,915 | ) | ||
As Corrected: | ||||
Net cash provided by continuing operating activities | 246,733 | |||
Net cash used in continuing investing activities | (198,551 | ) | ||
(1) "As reported" balances include amounts from continuing operations historically presented within these captions. |
June 30, 2020 | December 31, 2019 | |||||||||||||
Assets | ||||||||||||||
Restricted cash | $ | 39,248 | $ | 17,427 | ||||||||||
Loans receivable less allowance for loan losses | 242,840 | 220,067 | ||||||||||||
Prepaid expenses and other | 699 | — | ||||||||||||
Total Assets | $ | 282,787 | $ | 237,494 | ||||||||||
Liabilities | ||||||||||||||
Accounts payable and accrued liabilities | $ | 20,567 | $ | 13,462 | ||||||||||
Deferred revenue | 111 | 46 | ||||||||||||
Accrued interest | 1,030 | 871 | ||||||||||||
Intercompany payable | 57,836 | 69,639 | ||||||||||||
Debt | 120,685 | 112,221 | ||||||||||||
Total Liabilities | $ | 200,229 | $ | 196,239 |
(in thousands) | June 30, 2019 | December 31, 2018 | |||||
Assets | |||||||
Restricted cash | $ | 14,819 | $ | 12,840 | |||
Gross loans receivable less allowance for loan losses | 190,121 | 136,187 | |||||
Total Assets | $ | 204,940 | $ | 149,027 | |||
Liabilities | |||||||
Accounts payable and accrued liabilities | $ | 15,020 | $ | 4,980 | |||
Deferred revenue | 45 | 40 | |||||
Accrued interest | 713 | 831 | |||||
Long-term debt | 90,977 | 107,479 | |||||
Total Liabilities | $ | 106,755 | $ | 113,330 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Installment | $ | 70,429 | $ | 122,112 | $ | 192,838 | $ | 257,890 | ||||||||||||||||||||||||||||||||||||||||||
Secured Installment | 19,401 | 26,076 | 45,687 | 53,553 | ||||||||||||||||||||||||||||||||||||||||||||||
Open-End | 56,736 | 54,972 | 127,718 | 107,841 | ||||||||||||||||||||||||||||||||||||||||||||||
Single-Pay | 22,732 | 45,528 | 67,889 | 92,289 | ||||||||||||||||||||||||||||||||||||||||||||||
Ancillary | 13,211 | 15,612 | 29,183 | 30,666 | ||||||||||||||||||||||||||||||||||||||||||||||
Total revenue(1) | $ | 182,509 | $ | 264,300 | $ | 463,315 | $ | 542,239 | ||||||||||||||||||||||||||||||||||||||||||
(1) Includes revenue from CSO programs of $37.8 million and $63.6 million for the three months ended June 30, 2020 and 2019, respectively, and $105.8 million and $127.8 million for the six months ended June 30, 2020 and 2019, respectively. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
(in thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||
Unsecured Installment | $ | 122,112 | $ | 114,936 | $ | 257,890 | $ | 240,315 | ||||||
Secured Installment | 26,076 | 25,777 | 53,553 | 52,633 | ||||||||||
Open-End | 54,972 | 27,222 | 107,841 | 54,445 | ||||||||||
Single-Pay | 45,528 | 58,325 | 92,289 | 118,682 | ||||||||||
Ancillary | 15,612 | 10,909 | 30,666 | 21,937 | ||||||||||
Total revenue | $ | 264,300 | $ | 237,169 | $ | 542,239 | $ | 488,012 |
June 30, 2020 | ||||||||||||||||||||||||||||||||||||||
Single-Pay(1) | Unsecured Installment | Secured Installment | Open-End | Total | ||||||||||||||||||||||||||||||||||
Current loans receivable | $ | 36,130 | $ | 63,835 | $ | 44,675 | $ | 253,948 | $ | 398,588 | ||||||||||||||||||||||||||||
Delinquent loans receivable | — | 17,766 | 8,950 | 31,208 | 57,924 | |||||||||||||||||||||||||||||||||
Total loans receivable | 36,130 | 81,601 | 53,625 | 285,156 | 456,512 | |||||||||||||||||||||||||||||||||
Less: allowance for losses | (2,802) | (18,451) | (7,883) | (47,319) | (76,455) | |||||||||||||||||||||||||||||||||
Loans receivable, net | $ | 33,328 | $ | 63,150 | $ | 45,742 | $ | 237,837 | $ | 380,057 | ||||||||||||||||||||||||||||
(1) Of the $36.1 million of Single-Pay receivables, $8.1 million relate to mandated extended payment options for certain Canada Single-Pay loans. |
June 30, 2020 | ||||||||||||||||||||||||||
Unsecured Installment | Secured Installment | Open-End | Total | |||||||||||||||||||||||
Delinquent loans receivable | ||||||||||||||||||||||||||
0-30 days past due | $ | 5,207 | $ | 3,500 | $ | 11,743 | $ | 20,450 | ||||||||||||||||||
31-60 days past due | 3,825 | 2,157 | 7,225 | 13,207 | ||||||||||||||||||||||
61 + days past due | 8,734 | 3,293 | 12,240 | 24,267 | ||||||||||||||||||||||
Total delinquent loans receivable | $ | 17,766 | $ | 8,950 | $ | 31,208 | $ | 57,924 | ||||||||||||||||||
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. |
June 30, 2019 | ||||||||||||||||
(in thousands) | Single-Pay | Unsecured Installment | Secured Installment | Open-End | Total | |||||||||||
Current loans receivable | $ | 76,126 | $ | 126,685 | $ | 71,218 | $ | 247,915 | $ | 521,944 | ||||||
Delinquent loans receivable | — | 38,037 | 14,216 | 35,396 | 87,649 | |||||||||||
Total loans receivable | 76,126 | 164,722 | 85,434 | 283,311 | 609,593 | |||||||||||
Less: allowance for losses | (4,941 | ) | (35,223 | ) | (9,996 | ) | (51,717 | ) | (101,877 | ) | ||||||
Loans receivable, net | $ | 71,185 | $ | 129,499 | $ | 75,438 | $ | 231,594 | $ | 507,716 |
June 30, 2019 | |||||||||||||
(in thousands) | Unsecured Installment | Secured Installment | Open-End | Total | |||||||||
Delinquent loans receivable | |||||||||||||
0-30 days past due | $ | 14,995 | $ | 7,096 | $ | 14,997 | $ | 37,088 | |||||
31-60 days past due | 11,176 | 3,358 | 9,455 | 23,989 | |||||||||
61-90 days past due | 11,866 | 3,762 | 10,944 | 26,572 | |||||||||
Total delinquent loans receivable | $ | 38,037 | $ | 14,216 | $ | 35,396 | $ | 87,649 |
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 | ||||||||||||||||||
December 31, 2018 | ||||||||||||||||
(in thousands) | Single-Pay | Unsecured Installment | Secured Installment | Open-End | Total | |||||||||||
Current loans receivable | $ | 80,823 | $ | 141,316 | $ | 75,583 | $ | 207,333 | $ | 505,055 | ||||||
Delinquent loans receivable | — | 49,087 | 17,389 | — | 66,476 | |||||||||||
Total loans receivable | 80,823 | 190,403 | 92,972 | 207,333 | 571,531 | |||||||||||
Less: allowance for losses | (4,189 | ) | (37,716 | ) | (12,191 | ) | (19,901 | ) | (73,997 | ) | ||||||
Loans receivable, net | $ | 76,634 | $ | 152,687 | $ | 80,781 | $ | 187,432 | $ | 497,534 |
December 31, 2018 | ||||||||||
(in thousands) | Unsecured Installment | Secured Installment | Total | |||||||
Delinquent loans receivable | ||||||||||
0-30 days past due | $ | 17,850 | $ | 7,870 | $ | 25,720 | ||||
31-60 days past due | 14,705 | 4,725 | 19,430 | |||||||
61-90 days past due | 16,532 | 4,794 | 21,326 | |||||||
Total delinquent loans receivable | $ | 49,087 | $ | 17,389 | $ | 66,476 |
June 30, 2020 | ||||||||||||||||||||||||||
Unsecured Installment | Secured Installment | Total | ||||||||||||||||||||||||
Current loans receivable guaranteed by the Company | $ | 29,063 | $ | 887 | $ | 29,950 | ||||||||||||||||||||
Delinquent loans receivable guaranteed by the Company | 4,019 | 123 | 4,142 | |||||||||||||||||||||||
Total loans receivable guaranteed by the Company | 33,082 | 1,010 | 34,092 | |||||||||||||||||||||||
Less: Liability for losses on CSO lender-owned consumer loans | (5,128) | (36) | (5,164) | |||||||||||||||||||||||
Loans receivable guaranteed by the Company, net | $ | 27,954 | $ | 974 | $ | 28,928 |
June 30, 2020 | ||||||||||||||||||||
Unsecured Installment | Secured Installment | Total | ||||||||||||||||||
Delinquent loans receivable | ||||||||||||||||||||
0-30 days past due | $ | 3,411 | $ | 104 | $ | 3,515 | ||||||||||||||
31-60 days past due | 347 | 11 | 358 | |||||||||||||||||
61+ days past due | 261 | 8 | 269 | |||||||||||||||||
Total delinquent loans receivable | $ | 4,019 | $ | 123 | $ | 4,142 | ||||||||||||||
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 |
June 30, 2019 | ||||||||||
(in thousands) | Unsecured Installment | Secured Installment | Total | |||||||
Current loans receivable guaranteed by the Company | $ | 54,968 | $ | 1,930 | $ | 56,898 | ||||
Delinquent loans receivable guaranteed by the Company | 10,087 | 354 | 10,441 | |||||||
Total loans receivable guaranteed by the Company | 65,055 | 2,284 | 67,339 | |||||||
Less: Liability for losses on CSO lender-owned consumer loans | (9,433 | ) | (71 | ) | (9,504 | ) | ||||
Loans receivable guaranteed by the Company, net | $ | 55,622 | $ | 2,213 | $ | 57,835 |
June 30, 2019 | ||||||||||
(in thousands) | Unsecured Installment | Secured Installment | Total | |||||||
Delinquent loans receivable | ||||||||||
0-30 days past due | $ | 8,511 | $ | 299 | $ | 8,810 | ||||
31-60 days past due | 1,052 | 37 | 1,089 | |||||||
61-90 days past due | 524 | 18 | 542 | |||||||
Total delinquent loans receivable | $ | 10,087 | $ | 354 | $ | 10,441 |
December 31, 2018 | ||||||||||
(in thousands) | Unsecured Installment | Secured Installment | Total | |||||||
Current loans receivable guaranteed by the Company | $ | 65,743 | $ | 2,504 | $ | 68,247 | ||||
Delinquent loans receivable guaranteed by the Company | 11,708 | 446 | 12,154 | |||||||
Total loans receivable guaranteed by the Company | 77,451 | 2,950 | 80,401 | |||||||
Less: Liability for losses on CSO lender-owned consumer loans | (11,582 | ) | (425 | ) | (12,007 | ) | ||||
Loans receivable guaranteed by the Company, net | $ | 65,869 | $ | 2,525 | $ | 68,394 |
December 31, 2018 | ||||||||||
(in thousands) | Unsecured Installment | Secured Installment | Total | |||||||
Delinquent loans receivable | ||||||||||
0-30 days past due | $ | 9,684 | $ | 369 | $ | 10,053 | ||||
31-60 days past due | 1,255 | 48 | 1,303 | |||||||
61-90 days past due | 769 | 29 | 798 | |||||||
Total delinquent loans receivable | $ | 11,708 | $ | 446 | $ | 12,154 |
Three Months Ended June 30, 2019 | ||||||||||||||||||
(in thousands) | Single-Pay | Unsecured Installment | Secured Installment | Open-End | Other | Total | ||||||||||||
Balance, beginning of period | $ | 3,897 | $ | 33,666 | $ | 9,796 | $ | 46,963 | $ | — | $ | 94,322 | ||||||
Charge-offs | (35,759 | ) | (37,336 | ) | (10,295 | ) | (30,688 | ) | (1,342 | ) | (115,420 | ) | ||||||
Recoveries | 24,301 | 5,366 | 2,693 | 5,537 | 822 | 38,719 | ||||||||||||
Net charge-offs | (11,458 | ) | (31,970 | ) | (7,602 | ) | (25,151 | ) | (520 | ) | (76,701 | ) | ||||||
Provision for losses | 12,446 | 33,514 | 7,802 | 29,373 | 520 | 83,655 | ||||||||||||
Effect of foreign currency translation | 56 | 13 | — | 532 | — | 601 | ||||||||||||
Balance, end of period | $ | 4,941 | $ | 35,223 | $ | 9,996 | $ | 51,717 | $ | — | $ | 101,877 | ||||||
Allowance for loan losses as a percentage of gross loan receivables | 6.5 | % | 21.4 | % | 11.7 | % | 18.3 | % | N/A | 16.7 | % |
Three Months Ended June 30, 2019 | |||||||||
(in thousands) | Unsecured Installment | Secured Installment | Total | ||||||
Balance, beginning of period | $ | 8,583 | $ | 78 | $ | 8,661 | |||
Charge-offs | (34,564 | ) | (683 | ) | (35,247 | ) | |||
Recoveries | 7,078 | 657 | 7,735 | ||||||
Net charge-offs | (27,486 | ) | (26 | ) | (27,512 | ) | |||
Provision for losses | 28,336 | 19 | 28,355 | ||||||
Balance, end of period | $ | 9,433 | $ | 71 | $ | 9,504 |
Three Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||
Single-Pay | Unsecured Installment | Secured Installment | Open-End | Other | Total | ||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 4,693 | $ | 28,965 | $ | 9,726 | $ | 56,458 | $ | — | $ | 99,842 | |||||||||||||||||||||||
Charge-offs | (21,168) | (30,129) | (11,747) | (37,784) | (750) | (101,578) | |||||||||||||||||||||||||||||
Recoveries | 21,766 | 7,019 | 2,961 | 6,100 | 398 | 38,244 | |||||||||||||||||||||||||||||
Net charge-offs | 598 | (23,110) | (8,786) | (31,684) | (352) | (63,334) | |||||||||||||||||||||||||||||
Provision for losses | (2,588) | 12,584 | 6,943 | 21,341 | 352 | 38,632 | |||||||||||||||||||||||||||||
Effect of foreign currency translation | 99 | 12 | — | 1,204 | — | 1,315 | |||||||||||||||||||||||||||||
Balance, end of period | $ | 2,802 | $ | 18,451 | $ | 7,883 | $ | 47,319 | $ | — | $ | 76,455 | |||||||||||||||||||||||
Liability for losses on CSO lender-owned consumer loans: | |||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | — | $ | 9,142 | $ | 47 | $ | — | $ | — | $ | 9,189 | |||||||||||||||||||||||
Decrease in liability | — | 4,014 | 11 | — | — | 4,025 | |||||||||||||||||||||||||||||
Balance, end of period | $ | — | $ | 5,128 | $ | 36 | $ | — | $ | — | $ | 5,164 |
Three Months Ended June 30, 2019 | |||||||||||||||||||||||||||||||||||
Single-Pay | Unsecured Installment | Secured Installment | Open-End | Other | Total | ||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 3,897 | $ | 33,666 | $ | 9,796 | $ | 46,963 | $ | — | $ | 94,322 | |||||||||||||||||||||||
Charge-offs | (35,759) | (37,336) | (10,295) | (30,688) | (1,342) | (115,420) | |||||||||||||||||||||||||||||
Recoveries | 24,301 | 5,366 | 2,693 | 5,537 | 822 | 38,719 | |||||||||||||||||||||||||||||
Net charge-offs | (11,458) | (31,970) | (7,602) | (25,151) | (520) | (76,701) | |||||||||||||||||||||||||||||
Provision for losses | 12,446 | 33,514 | 7,802 | 29,373 | 520 | 83,655 | |||||||||||||||||||||||||||||
Effect of foreign currency translation | 56 | 13 | — | 532 | — | 601 | |||||||||||||||||||||||||||||
Balance, end of period | $ | 4,941 | $ | 35,223 | $ | 9,996 | $ | 51,717 | $ | — | $ | 101,877 | |||||||||||||||||||||||
Liability for losses on CSO lender-owned consumer loans: | |||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | — | $ | 8,583 | $ | 78 | $ | — | $ | — | $ | 8,661 | |||||||||||||||||||||||
Increase in liability | — | (850) | 7 | — | — | (843) | |||||||||||||||||||||||||||||
Balance, end of period | $ | — | $ | 9,433 | $ | 71 | $ | — | $ | — | $ | 9,504 |
Six Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||
Single-Pay | Unsecured Installment | Secured Installment | Open-End | Other | Total | ||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 5,869 | $ | 35,587 | $ | 10,305 | $ | 55,074 | $ | — | $ | 106,835 | |||||||||||||||||||||||
Charge-offs | (61,689) | (68,687) | (24,857) | (81,293) | (2,028) | (238,554) | |||||||||||||||||||||||||||||
Recoveries | 51,770 | 12,802 | 5,870 | 12,511 | 977 | 83,930 | |||||||||||||||||||||||||||||
Net charge-offs | (9,919) | (55,885) | (18,987) | (68,782) | (1,051) | (154,624) | |||||||||||||||||||||||||||||
Provision for losses | 7,051 | 38,766 | 16,565 | 62,332 | 1,051 | 125,765 | |||||||||||||||||||||||||||||
Effect of foreign currency translation | (199) | (17) | — | (1,305) | — | (1,521) | |||||||||||||||||||||||||||||
Balance, end of period | $ | 2,802 | $ | 18,451 | $ | 7,883 | $ | 47,319 | $ | — | $ | 76,455 | |||||||||||||||||||||||
Liability for losses on CSO lender-owned consumer loans: | |||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | — | $ | 10,553 | $ | 70 | $ | — | $ | — | $ | 10,623 | |||||||||||||||||||||||
Decrease in liability | — | 5,425 | 34 | — | — | 5,459 | |||||||||||||||||||||||||||||
Balance, end of period | $ | — | $ | 5,128 | $ | 36 | $ | — | $ | — | $ | 5,164 |
Six Months Ended June 30, 2019 | |||||||||||||||||||||||||||||||||||
Single-Pay | Unsecured Installment | Secured Installment | Open-End | Other | Total | ||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 4,189 | $ | 37,716 | $ | 12,191 | $ | 19,901 | $ | — | $ | 73,997 | |||||||||||||||||||||||
Charge-offs | (72,280) | (81,573) | (22,966) | (34,326) | (2,693) | (213,838) | |||||||||||||||||||||||||||||
Recoveries | 52,212 | 11,684 | 5,816 | 10,696 | 1,721 | 82,129 | |||||||||||||||||||||||||||||
Net charge-offs | (20,068) | (69,889) | (17,150) | (23,630) | (972) | (131,709) | |||||||||||||||||||||||||||||
Provision for losses | 20,714 | 67,359 | 14,955 | 54,690 | 972 | 158,690 | |||||||||||||||||||||||||||||
Effect of foreign currency translation | 106 | 37 | — | 756 | — | 899 | |||||||||||||||||||||||||||||
Balance, end of period | $ | 4,941 | $ | 35,223 | $ | 9,996 | $ | 51,717 | $ | — | $ | 101,877 | |||||||||||||||||||||||
Liability for losses on CSO lender-owned consumer loans: | |||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | — | $ | 11,582 | $ | 425 | $ | — | $ | — | $ | 12,007 | |||||||||||||||||||||||
Decrease (increase) in liability | — | 2,149 | 354 | — | — | 2,503 | |||||||||||||||||||||||||||||
Balance, end of period | $ | — | $ | 9,433 | $ | 71 | $ | — | $ | — | $ | 9,504 |
As of June 30, 2020 | ||||||||||||||||||||
Current TDR gross receivables | $ | 13,803 | ||||||||||||||||||
Delinquent TDR gross receivables | 6,534 | |||||||||||||||||||
Total TDR gross receivables | 20,337 | |||||||||||||||||||
Less: Impairment included in the allowance for loan losses | (9,043) | |||||||||||||||||||
Outstanding TDR receivables, net of impairment | $ | 11,294 |
Three Months Ended June 30, 2019 | ||||||||||||||||||
(in thousands) | Single-Pay | Unsecured Installment | Secured Installment | Open-End | Other | Total | ||||||||||||
Balance, beginning of period | $ | 3,897 | $ | 42,249 | $ | 9,874 | $ | 46,963 | $ | — | $ | 102,983 | ||||||
Charge-offs | (35,759 | ) | (71,900 | ) | (10,978 | ) | (30,688 | ) | (1,342 | ) | (150,667 | ) | ||||||
Recoveries | 24,301 | 12,444 | 3,350 | 5,537 | 822 | 46,454 | ||||||||||||
Net charge-offs | (11,458 | ) | (59,456 | ) | (7,628 | ) | (25,151 | ) | (520 | ) | (104,213 | ) | ||||||
Provision for losses | 12,446 | 61,850 | 7,821 | 29,373 | 520 | 112,010 | ||||||||||||
Effect of foreign currency translation | 56 | 13 | — | 532 | — | 601 | ||||||||||||
Balance, end of period | $ | 4,941 | $ | 44,656 | $ | 10,067 | $ | 51,717 | $ | — | $ | 111,381 |
Three and Six Months Ended June 30, 2020 | ||||||||||||||||||||
Pre-modification TDR loans receivable | $ | 24,069 | ||||||||||||||||||
Post-modification TDR loans receivable | 21,390 | |||||||||||||||||||
Total concessions included in gross charge-offs | $ | 2,679 |
Three Months Ended June 30, 2018 | ||||||||||||||||||
(in thousands) | Single-Pay | Unsecured Installment | Secured Installment | Open-End | Other | Total | ||||||||||||
Balance, beginning of period | $ | 3,514 | $ | 33,638 | $ | 11,639 | $ | 6,846 | $ | — | $ | 55,637 | ||||||
Charge-offs | (41,242 | ) | (31,612 | ) | (11,082 | ) | (23,807 | ) | (593 | ) | (108,336 | ) | ||||||
Recoveries | 28,266 | 5,085 | 2,296 | 11,883 | 38 | 47,568 | ||||||||||||
Net charge-offs | (12,976 | ) | (26,527 | ) | (8,786 | ) | (11,924 | ) | (555 | ) | (60,768 | ) | ||||||
Provision for losses | 13,101 | 23,219 | 7,533 | 14,848 | 555 | 59,256 | ||||||||||||
Effect of foreign currency translation | (35 | ) | (39 | ) | — | (53 | ) | — | (127 | ) | ||||||||
Balance, end of period | $ | 3,604 | $ | 30,291 | $ | 10,386 | $ | 9,717 | $ | — | $ | 53,998 | ||||||
Allowance for loan losses as a percentage of gross loan receivables | 4.3 | % | 18.9 | % | 12.3 | % | 10.7 | % | N/A | 12.8 | % |
Three Months Ended June 30, 2018 | |||||||||
(in thousands) | Unsecured Installment | Secured Installment | Total | ||||||
Balance, beginning of period | $ | 9,886 | $ | 526 | $ | 10,412 | |||
Charge-offs | (33,017 | ) | (993 | ) | (34,010 | ) | |||
Recoveries | 7,350 | 776 | 8,126 | ||||||
Net charge-offs | (25,667 | ) | (217 | ) | (25,884 | ) | |||
Provision for losses | 26,974 | 117 | 27,091 | ||||||
Balance, end of period | $ | 11,193 | $ | 426 | $ | 11,619 |
Three Months Ended June 30, 2018 | ||||||||||||||||||
(in thousands) | Single-Pay | Unsecured Installment | Secured Installment | Open-End | Other | Total | ||||||||||||
Balance, beginning of period | $ | 3,514 | $ | 43,524 | $ | 12,165 | $ | 6,846 | $ | — | $ | 66,049 | ||||||
Charge-offs | (41,242 | ) | (64,629 | ) | (12,075 | ) | (23,807 | ) | (593 | ) | (142,346 | ) | ||||||
Recoveries | 28,266 | 12,435 | 3,072 | 11,883 | 38 | 55,694 | ||||||||||||
Net charge-offs | (12,976 | ) | (52,194 | ) | (9,003 | ) | (11,924 | ) | (555 | ) | (86,652 | ) | ||||||
Provision for losses | 13,101 | 50,193 | 7,650 | 14,848 | 555 | 86,347 | ||||||||||||
Effect of foreign currency translation | (35 | ) | (39 | ) | — | (53 | ) | — | (127 | ) | ||||||||
Balance, end of period | $ | 3,604 | $ | 41,484 | $ | 10,812 | $ | 9,717 | $ | — | $ | 65,617 |
Six Months Ended June 30, 2019 | ||||||||||||||||||
(in thousands) | Single-Pay | Unsecured Installment | Secured Installment | Open-End | Other | Total | ||||||||||||
Balance, beginning of period | $ | 4,189 | $ | 37,716 | $ | 12,191 | $ | 19,901 | $ | — | $ | 73,997 | ||||||
Charge-offs | (72,280 | ) | (81,573 | ) | (22,966 | ) | (34,326 | ) | (2,693 | ) | (213,838 | ) | ||||||
Recoveries | 52,212 | 11,684 | 5,816 | 10,696 | 1,721 | 82,129 | ||||||||||||
Net charge-offs | (20,068 | ) | (69,889 | ) | (17,150 | ) | (23,630 | ) | (972 | ) | (131,709 | ) | ||||||
Provision for losses | 20,714 | 67,359 | 14,955 | 54,690 | 972 | 158,690 | ||||||||||||
Effect of foreign currency translation | 106 | 37 | — | 756 | — | 899 | ||||||||||||
Balance, end of period | $ | 4,941 | $ | 35,223 | $ | 9,996 | $ | 51,717 | $ | — | $ | 101,877 | ||||||
Allowance for loan losses as a percentage of gross loan receivables | 6.5 | % | 21.4 | % | 11.7 | % | 18.3 | % | N/A | 16.7 | % |
Six Months Ended June 30, 2019 | |||||||||
(in thousands) | Unsecured Installment | Secured Installment | Total | ||||||
Balance, beginning of period | $ | 11,582 | $ | 425 | $ | 12,007 | |||
Charge-offs | (75,545 | ) | (1,760 | ) | (77,305 | ) | |||
Recoveries | 17,638 | 1,459 | 19,097 | ||||||
Net charge-offs | (57,907 | ) | (301 | ) | (58,208 | ) | |||
Provision for losses | 55,758 | (53 | ) | 55,705 | |||||
Balance, end of period | $ | 9,433 | $ | 71 | $ | 9,504 |
Three and Six Months Ended June 30, 2020 | ||||||||||||||||||||||||||
Average outstanding TDR loans receivable (1) | $ | 20,864 | ||||||||||||||||||||||||
Interest income recognized | 4,396 | |||||||||||||||||||||||||
Number of TDR loans (2) | 21,512 | |||||||||||||||||||||||||
(1) As there were 0 TDRs prior to April 1, 2020, the average outstanding TDR loans receivable is calculated based on the amount immediately after the loan was classified as a TDR and the ending TDR balance as of June 30, 2020. | ||||||||||||||||||||||||||
(2) Presented in ones | ||||||||||||||||||||||||||
Six Months Ended June 30, 2019 | ||||||||||||||||||
(in thousands) | Single-Pay | Unsecured Installment | Secured Installment | Open-End | Other | Total | ||||||||||||
Balance, beginning of period | $ | 4,189 | $ | 49,298 | $ | 12,616 | $ | 19,901 | $ | — | $ | 86,004 | ||||||
Charge-offs | (72,280 | ) | (157,118 | ) | (24,726 | ) | (34,326 | ) | (2,693 | ) | (291,143 | ) | ||||||
Recoveries | 52,212 | 29,322 | 7,275 | 10,696 | 1,721 | 101,226 | ||||||||||||
Net charge-offs | (20,068 | ) | (127,796 | ) | (17,451 | ) | (23,630 | ) | (972 | ) | (189,917 | ) | ||||||
Provision for losses | 20,714 | 123,117 | 14,902 | 54,690 | 972 | 214,395 | ||||||||||||
Effect of foreign currency translation | 106 | 37 | — | 756 | — | 899 | ||||||||||||
Balance, end of period | $ | 4,941 | $ | 44,656 | $ | 10,067 | $ | 51,717 | $ | — | $ | 111,381 |
Six Months Ended June 30, 2018 | ||||||||||||||||||
(in thousands) | Single-Pay | Unsecured Installment | Secured Installment | Open-End | Other | Total | ||||||||||||
Balance, beginning of period | $ | 5,204 | $ | 38,977 | $ | 13,472 | $ | 6,426 | $ | — | $ | 64,079 | ||||||
Charge-offs | (85,578 | ) | (66,831 | ) | (22,567 | ) | (44,156 | ) | (1,268 | ) | (220,400 | ) | ||||||
Recoveries | 61,084 | 10,303 | 5,162 | 21,260 | 85 | 97,894 | ||||||||||||
Net charge-offs | (24,494 | ) | (56,528 | ) | (17,405 | ) | (22,896 | ) | (1,183 | ) | (122,506 | ) | ||||||
Provision for losses | 22,993 | 47,958 | 14,319 | 26,276 | 1,183 | 112,729 | ||||||||||||
Effect of foreign currency translation | (99 | ) | (116 | ) | — | (89 | ) | — | (304 | ) | ||||||||
Balance, end of period | $ | 3,604 | $ | 30,291 | $ | 10,386 | $ | 9,717 | $ | — | $ | 53,998 | ||||||
Allowance for loan losses as a percentage of gross loan receivables | 4.3 | % | 18.9 | % | 12.3 | % | 10.7 | % | N/A | 12.8 | % |
Six Months Ended June 30, 2018 | |||||||||
(in thousands) | Unsecured Installment | Secured Installment | Total | ||||||
Balance, beginning of period | $ | 17,073 | $ | 722 | $ | 17,795 | |||
Charge-offs | (74,736 | ) | (2,212 | ) | (76,948 | ) | |||
Recoveries | 18,326 | 1,945 | 20,271 | ||||||
Net charge-offs | (56,410 | ) | (267 | ) | (56,677 | ) | |||
Provision for losses | 50,530 | (29 | ) | 50,501 | |||||
Balance, end of period | $ | 11,193 | $ | 426 | $ | 11,619 |
Six Months Ended June 30, 2018 | ||||||||||||||||||
(in thousands) | Single-Pay | Unsecured Installment | Secured Installment | Open-End | Other | Total | ||||||||||||
Balance, beginning of period | $ | 5,204 | $ | 56,050 | $ | 14,194 | $ | 6,426 | $ | — | $ | 81,874 | ||||||
Charge-offs | (85,578 | ) | (141,567 | ) | (24,779 | ) | (44,156 | ) | (1,268 | ) | (297,348 | ) | ||||||
Recoveries | 61,084 | 28,629 | 7,107 | 21,260 | 85 | 118,165 | ||||||||||||
Net charge-offs | (24,494 | ) | (112,938 | ) | (17,672 | ) | (22,896 | ) | (1,183 | ) | (179,183 | ) | ||||||
Provision for losses | 22,993 | 98,488 | 14,290 | 26,276 | 1,183 | 163,230 | ||||||||||||
Effect of foreign currency translation | (99 | ) | (116 | ) | — | (89 | ) | — | (304 | ) | ||||||||
Balance, end of period | $ | 3,604 | $ | 41,484 | $ | 10,812 | $ | 9,717 | $ | — | $ | 65,617 |
(in thousands) | June 30, 2019 | December 31, 2018 | ||||||
8.25% Senior Secured Notes (due 2025) | $ | 677,535 | $ | 676,661 | ||||
Non-Recourse Canada SPV Facility | 90,977 | 107,479 | ||||||
Senior Revolver | — | 20,000 | ||||||
Long-term debt | $ | 768,512 | $ | 804,140 |
June 30, 2020 | December 31, 2019 | |||||||||||||
8.25% Senior Secured Notes (due 2025) | $ | 679,143 | $ | 678,323 | ||||||||||
Non-Recourse U.S. SPV Facility | 31,896 | — | ||||||||||||
Non-Recourse Canada SPV Facility | 88,789 | 112,221 | ||||||||||||
Debt | $ | 799,828 | $ | 790,544 |
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 | 679,413 | 368,539 | 10.42 | ||||||||||||||
Vested | (307,142) | — | 11.34 | ||||||||||||||
Forfeited | (24,025) | (4,687) | 11.99 | ||||||||||||||
June 30, 2020 | 1,409,999 | 758,713 | $ | 10.97 |
Number of RSUs | ||||||||
Time-Based | Market-Based | Weighted Average Grant Date Fair Value per Share | ||||||
December 31, 2018 | 1,060,350 | — | $ | 14.29 | ||||
Granted | 579,540 | 394,755 | 10.07 | |||||
Vested | (83,481 | ) | — | 15.59 | ||||
Forfeited | (68,778 | ) | — | 14.05 | ||||
June 30, 2019 | 1,487,631 | 394,755 | $ | 12.06 |
Estimated Fair Value | ||||||||||||||||||||||||||
Carrying Value June 30, 2020 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||
Cash Surrender Value of Life Insurance | $ | 6,409 | $ | 6,409 | $ | — | $ | — | $ | 6,409 | ||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||
Non-qualified deferred compensation plan | $ | 4,292 | $ | 4,292 | $ | — | $ | — | $ | 4,292 |
Estimated Fair Value | ||||||||||||||||||||||||||
Carrying Value December 31, 2019 | 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 | ||||||||||||||||
Estimated Fair Value | ||||||||||||||||||||||||||
Carrying Value June 30, 2020 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||
Cash and cash equivalents | $ | 269,342 | $ | 269,342 | $ | — | $ | — | $ | 269,342 | ||||||||||||||||
Restricted cash | 63,274 | 63,274 | — | — | 63,274 | |||||||||||||||||||||
Loans receivable, net | 380,057 | — | — | 380,057 | 380,057 | |||||||||||||||||||||
Equity method investment | 9,191 | — | — | 9,191 | 9,191 | |||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||
Liability for losses on CSO lender-owned consumer loans | $ | 5,164 | $ | — | $ | — | $ | 5,164 | $ | 5,164 | ||||||||||||||||
8.25% Senior Secured Notes | 679,143 | — | 543,111 | — | 543,111 | |||||||||||||||||||||
Non-Recourse U.S. SPV facility | 31,896 | — | — | 35,206 | 35,206 | |||||||||||||||||||||
Non-Recourse Canada SPV facility | 88,789 | — | — | 91,109 | 91,109 | |||||||||||||||||||||
Estimated Fair Value | |||||||||||||||
(in thousands) | Carrying Value June 30, 2019 | Level 1 | Level 2 | Level 3 | Total | ||||||||||
Financial assets: | |||||||||||||||
Cash | $ | 92,297 | $ | 92,297 | $ | — | $ | — | $ | 92,297 | |||||
Restricted cash | 33,712 | 33,712 | — | — | 33,712 | ||||||||||
Loans receivable, net | 507,716 | — | — | 507,716 | 507,716 | ||||||||||
Investment in Cognical | 7,178 | — | — | 7,178 | 7,178 | ||||||||||
Financial liabilities: | |||||||||||||||
Liability for losses on CSO lender-owned consumer loans | $ | 9,504 | $ | — | $ | — | $ | 9,504 | $ | 9,504 | |||||
8.25% Senior Secured Notes | 677,535 | — | — | 574,211 | 574,211 | ||||||||||
Non-Recourse Canada SPV facility | 90,977 | — | — | 94,565 | 94,565 |
Estimated Fair Value | ||||||||||||||||||||||||||
Carrying Value December 31, 2019 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||
Cash and cash equivalents | $ | 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 | |||||||||||||||||||||
Estimated Fair Value | |||||||||||||||
(in thousands) | Carrying Value December 31, 2018 | Level 1 | Level 2 | Level 3 | Total | ||||||||||
Financial assets: | |||||||||||||||
Cash | $ | 61,175 | $ | 61,175 | $ | — | $ | — | $ | 61,175 | |||||
Restricted cash | 25,439 | 25,439 | — | — | 25,439 | ||||||||||
Loans receivable, net | 497,534 | — | — | 497,534 | 497,534 | ||||||||||
Investment in Cognical | 6,558 | — | — | 6,558 | 6,558 | ||||||||||
Financial liabilities: | |||||||||||||||
Liability for losses on CSO lender-owned consumer loans | $ | 12,007 | $ | — | $ | — | $ | 12,007 | $ | 12,007 | |||||
8.25% Senior Secured notes | 676,661 | — | — | 531,179 | 531,179 | ||||||||||
Non-Recourse Canada SPV facility | 107,479 | — | — | 111,335 | 111,335 | ||||||||||
Senior Revolver | 20,000 | — | — | 20,000 | 20,000 |
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income from continuing operations | — | — | — | — | 21,080 | — | 21,080 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income from discontinued operations | — | — | — | — | 993 | — | 993 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | 10,261 | 10,261 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends | — | — | — | — | (2,244) | — | (2,244) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share based compensation expense | — | — | — | 3,310 | — | — | 3,310 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued for RSU's vesting, net of shares withheld and withholding paid for employee taxes | 105,098 | — | — | (29) | — | — | (29) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at June 30, 2020 | 40,884,545 | $ | 9 | $ | (77,852) | $ | 74,079 | $ | 147,301 | $ | (50,595) | $ | 92,942 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Accumulated other comprehensive income (loss) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Paid-in capital | Retained Earnings (Deficit) | AOCI (1) | Total Stockholders' Equity | ||||||||||||||||||
(dollars in thousands) | Shares Outstanding | Par Value | ||||||||||||||||||||
Balances at December 31, 2017 | 44,561,419 | $ | 8 | $ | 46,079 | $ | 3,988 | $ | (42,939 | ) | $ | 7,136 | ||||||||||
Net income from continuing operations | — | — | — | 24,913 | — | 24,913 | ||||||||||||||||
Net loss from discontinued operations | — | — | — | (1,621 | ) | — | (1,621 | ) | ||||||||||||||
Foreign currency translation adjustment | — | — | — | — | (2,910 | ) | (2,910 | ) | ||||||||||||||
Cash flow hedge expiration | — | — | — | — | 54 | 54 | ||||||||||||||||
Share based compensation expense | — | — | 1,842 | — | — | 1,842 | ||||||||||||||||
Initial Public Offering, Net Proceeds (underwriter shares) | 1,000,000 | 1 | 13,135 | — | — | 13,136 | ||||||||||||||||
Balances at March 31, 2018 | 45,561,419 | $ | 9 | $ | 61,056 | $ | 27,280 | $ | (45,795 | ) | $ | 42,550 | ||||||||||
Net income from continuing operations | — | — | — | 18,718 | — | 18,718 | ||||||||||||||||
Net loss from discontinued operations | — | — | — | (2,743 | ) | — | (2,743 | ) | ||||||||||||||
Foreign currency translation adjustment | — | — | — | — | (6,754 | ) | (6,754 | ) | ||||||||||||||
Cash flow hedge expiration | — | — | — | — | (439 | ) | (439 | ) | ||||||||||||||
Share based compensation expense | — | — | 1,478 | — | — | 1,478 | ||||||||||||||||
Proceeds from exercise of stock options | 209,132 | — | 39 | — | — | 39 | ||||||||||||||||
Common stock issued for RSU's vesting | 49,994 | — | — | — | — | — | ||||||||||||||||
Balances at June 30, 2018 | 45,820,545 | $ | 9 | $ | 62,573 | $ | 43,255 | $ | (52,988 | ) | $ | 52,849 | ||||||||||
(1) Accumulated other comprehensive income (loss) |
Common Stock | 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income from continuing operations | — | — | — | — | 17,667 | — | 17,667 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss from discontinued operations | — | — | — | — | (834) | — | (834) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | 3,635 | 3,635 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share based compensation expense | — | — | — | 2,644 | — | — | 2,644 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from exercise of stock options | 4,908 | — | — | 29 | — | — | 29 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | (244,200) | — | (2,507) | — | — | — | (2,507) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued for RSU's vesting, net of shares withheld and withholding paid for employee taxes | 63,285 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at June 30, 2019 | 46,255,282 | $ | 9 | $ | (2,507) | $ | 64,790 | $ | 35,816 | $ | (40,730) | $ | 57,378 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Accumulated other comprehensive income (loss) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Paid-in capital | Treasury Stock | Retained Earnings (Deficit) | AOCI (1) | Total Stockholders' Equity | |||||||||||||||||||||
(dollars in thousands) | Shares Outstanding | Par Value | ||||||||||||||||||||||||
Balances at December 31, 2018 | 46,412,231 | $ | 9 | $ | 60,015 | $ | — | $ | (18,065 | ) | $ | (61,060 | ) | $ | (19,101 | ) | ||||||||||
Net income from continuing operations | — | — | — | — | 28,673 | — | 28,673 | |||||||||||||||||||
Net income from discontinued operations | — | — | — | — | 8,375 | — | 8,375 | |||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | 16,695 | 16,695 | |||||||||||||||||||
Share based compensation expense | — | — | 2,172 | — | — | — | 2,172 | |||||||||||||||||||
Proceeds from exercise of stock options | 7,888 | — | 40 | — | — | — | 40 | |||||||||||||||||||
Common stock issued for RSU's vesting, net of shares withheld and withholding paid for employee taxes | 11,170 | — | (110 | ) | — | — | — | (110 | ) | |||||||||||||||||
Balances at March 31, 2019 | 46,431,289 | $ | 9 | $ | 62,117 | $ | — | $ | 18,983 | $ | (44,365 | ) | $ | 36,744 | ||||||||||||
Net income from continuing operations | — | — | — | — | 17,667 | — | 17,667 | |||||||||||||||||||
Net income from discontinued operations | — | — | — | — | (834 | ) | — | (834 | ) | |||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | 3,635 | 3,635 | |||||||||||||||||||
Share based compensation expense | — | — | 2,644 | — | — | — | 2,644 | |||||||||||||||||||
Proceeds from exercise of stock options | 4,908 | — | 29 | — | — | — | 29 | |||||||||||||||||||
Purchase of shares under the stock repurchase program | (244,200 | ) | — | — | (2,507 | ) | — | — | (2,507 | ) | ||||||||||||||||
Common stock issued for RSU's vesting, net of shares withheld and withholding paid for employee taxes | 63,285 | — | — | — | — | — | — | |||||||||||||||||||
Balances at June 30, 2019 | 46,255,282 | $ | 9 | $ | 64,790 | $ | (2,507 | ) | $ | 35,816 | $ | (40,730 | ) | $ | 57,378 | |||||||||||
(1) Accumulated other comprehensive income (loss) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Net income from continuing operations | $ | 21,080 | $ | 17,667 | $ | 57,093 | $ | 46,340 | |||||||||||||||||||||||||||
Net income (loss) from discontinued operations, net of tax | 993 | (834) | 1,285 | 7,541 | |||||||||||||||||||||||||||||||
Net income | $ | 22,073 | $ | 16,833 | $ | 58,378 | $ | 53,881 | |||||||||||||||||||||||||||
Weighted average common shares - basic | 40,810 | 46,451 | 40,814 | 46,438 | |||||||||||||||||||||||||||||||
Dilutive effect of stock options and restricted stock units | 735 | 656 | 872 | 897 | |||||||||||||||||||||||||||||||
Weighted average common shares - diluted | 41,545 | 47,107 | 41,686 | 47,335 | |||||||||||||||||||||||||||||||
Basic earnings (loss) per share: | |||||||||||||||||||||||||||||||||||
Continuing operations | $ | 0.52 | $ | 0.38 | $ | 1.40 | $ | 1.00 | |||||||||||||||||||||||||||
Discontinued operations | 0.02 | (0.02) | 0.03 | 0.16 | |||||||||||||||||||||||||||||||
Basic earnings per share | $ | 0.54 | $ | 0.36 | $ | 1.43 | $ | 1.16 | |||||||||||||||||||||||||||
Diluted earnings (loss) per share: | |||||||||||||||||||||||||||||||||||
Continuing operations | $ | 0.51 | $ | 0.38 | $ | 1.37 | $ | 0.98 | |||||||||||||||||||||||||||
Discontinued operations | 0.02 | (0.02) | 0.03 | 0.16 | |||||||||||||||||||||||||||||||
Diluted earnings per share | $ | 0.53 | $ | 0.36 | $ | 1.40 | $ | 1.14 | |||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income from continuing operations | $ | 17,667 | $ | 18,718 | $ | 46,340 | $ | 43,631 | |||||||
Net income (loss) from discontinued operations, net of tax | (834 | ) | (2,743 | ) | $ | 7,541 | $ | (4,364 | ) | ||||||
Net income | $ | 16,833 | $ | 15,975 | $ | 53,881 | $ | 39,267 | |||||||
Weighted average common shares - basic | 46,451 | 45,650 | 46,438 | 45,578 | |||||||||||
Dilutive effect of stock options and restricted stock units | 656 | 2,346 | 897 | 2,179 | |||||||||||
Weighted average common shares - diluted | 47,107 | 47,996 | 47,335 | 47,757 | |||||||||||
Basic income (loss) per share: | |||||||||||||||
Continuing operations | $ | 0.38 | $ | 0.41 | $ | 1.00 | $ | 0.96 | |||||||
Discontinued operations | (0.02 | ) | (0.06 | ) | 0.16 | (0.10 | ) | ||||||||
Basic income per share | $ | 0.36 | $ | 0.35 | $ | 1.16 | $ | 0.86 | |||||||
Diluted income (loss) per share: | |||||||||||||||
Continuing operations | $ | 0.38 | $ | 0.39 | $ | 0.98 | $ | 0.92 | |||||||
Discontinued operations | (0.02 | ) | (0.06 | ) | 0.16 | (0.10 | ) | ||||||||
Diluted income per share | $ | 0.36 | $ | 0.33 | $ | 1.14 | $ | 0.82 |
Six Months Ended June 30, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Cash paid for: | |||||||||||||||||
Interest | $ | 34,125 | $ | 34,678 | |||||||||||||
Income taxes, net of refunds | 1,133 | 4,231 | |||||||||||||||
Non-cash investing activities: | |||||||||||||||||
Property and equipment accrued in accounts payable and accrued liabilities | $ | 117 | $ | 105 |
Six Months Ended June 30, | |||||||
(dollars in thousands) | 2019 | 2018 | |||||
Cash paid for: | |||||||
Interest | $ | 34,678 | $ | 44,250 | |||
Income taxes | 4,231 | 11,621 | |||||
Non-cash investing activities: | |||||||
Property and equipment accrued in accounts payable | $ | 105 | $ | 595 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||
Revenues by segment: (1) | ||||||||||||||||||||||||||||||||||||||
U.S. | $ | 137,320 | $ | 210,046 | $ | 359,088 | $ | 436,165 | ||||||||||||||||||||||||||||||
Canada | 45,189 | 54,254 | 104,227 | 106,074 | ||||||||||||||||||||||||||||||||||
Consolidated revenue | $ | 182,509 | $ | 264,300 | $ | 463,315 | $ | 542,239 | ||||||||||||||||||||||||||||||
Net revenues by segment: | ||||||||||||||||||||||||||||||||||||||
U.S. | $ | 95,790 | $ | 117,494 | $ | 231,517 | $ | 258,633 | ||||||||||||||||||||||||||||||
Canada | 36,026 | 34,796 | $ | 67,569 | 69,211 | |||||||||||||||||||||||||||||||||
Consolidated net revenue | $ | 131,816 | $ | 152,290 | $ | 299,086 | $ | 327,844 | ||||||||||||||||||||||||||||||
Gross margin by segment: | ||||||||||||||||||||||||||||||||||||||
U.S. | $ | 56,860 | $ | 65,067 | $ | 144,400 | $ | 154,870 | ||||||||||||||||||||||||||||||
Canada | 19,639 | 16,114 | 31,798 | 31,808 | ||||||||||||||||||||||||||||||||||
Consolidated gross margin | $ | 76,499 | $ | 81,181 | $ | 176,198 | $ | 186,678 | ||||||||||||||||||||||||||||||
Segment operating income: | ||||||||||||||||||||||||||||||||||||||
U.S. | $ | 11,857 | $ | 17,029 | $ | 45,283 | $ | 48,224 | ||||||||||||||||||||||||||||||
Canada | 10,291 | 8,091 | 14,815 | 15,615 | ||||||||||||||||||||||||||||||||||
Consolidated operating income | $ | 22,148 | $ | 25,120 | $ | 60,098 | $ | 63,839 | ||||||||||||||||||||||||||||||
Expenditures for long-lived assets by segment: | ||||||||||||||||||||||||||||||||||||||
U.S. | $ | 248 | $ | 2,568 | $ | 4,528 | $ | 4,998 | ||||||||||||||||||||||||||||||
Canada | 144 | 477 | 697 | 1,166 | ||||||||||||||||||||||||||||||||||
Consolidated expenditures for long-lived assets | $ | 392 | $ | 3,045 | $ | 5,225 | $ | 6,164 | ||||||||||||||||||||||||||||||
(1) For revenue by product, see Note 3, "Loans Receivable and Revenue." |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(dollars in thousands) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Revenues by segment: | |||||||||||||||
U.S. | $ | 210,046 | $ | 190,126 | $ | 436,165 | $ | 394,719 | |||||||
Canada | 54,254 | 47,043 | 106,074 | 93,293 | |||||||||||
Consolidated revenue | $ | 264,300 | $ | 237,169 | $ | 542,239 | $ | 488,012 | |||||||
Gross margin by segment: | |||||||||||||||
U.S. | $ | 65,067 | $ | 64,048 | $ | 154,870 | $ | 155,392 | |||||||
Canada | 16,114 | 13,300 | 31,808 | 27,802 | |||||||||||
Consolidated gross margin | $ | 81,181 | $ | 77,348 | $ | 186,678 | $ | 183,194 | |||||||
Segment operating income: | |||||||||||||||
U.S. | $ | 17,029 | $ | 15,362 | $ | 48,224 | $ | 42,194 | |||||||
Canada | 8,091 | 8,534 | 15,615 | 18,082 | |||||||||||
Consolidated operating profit | $ | 25,120 | $ | 23,896 | $ | 63,839 | $ | 60,276 | |||||||
Expenditures for long-lived assets by segment: | |||||||||||||||
U.S. | $ | 2,568 | $ | 1,195 | $ | 4,998 | $ | 1,983 | |||||||
Canada | 477 | 220 | 1,166 | 974 | |||||||||||
Consolidated expenditures for long-lived assets | $ | 3,045 | $ | 1,415 | $ | 6,164 | $ | 2,957 |
June 30, 2020 | December 31, 2019 | |||||||||||||
U.S. | $ | 199,734 | $ | 363,453 | ||||||||||
Canada | 256,778 | 302,375 | ||||||||||||
Total gross loans receivable | $ | 456,512 | $ | 665,828 |
(dollars in thousands) | June 30, 2019 | December 31, 2018 | |||||
U.S. | $ | 340,968 | $ | 361,473 | |||
Canada | 268,625 | 210,058 | |||||
Total gross loans receivable | $ | 609,593 | $ | 571,531 |
June 30, 2020 | December 31, 2019 | |||||||||||||
U.S. | $ | 39,974 | $ | 43,618 | ||||||||||
Canada | 24,285 | 27,193 | ||||||||||||
Total net long-lived assets | $ | 64,259 | $ | 70,811 |
(dollars in thousands) | June 30, 2019 | December 31, 2018 | |||||
U.S. | $ | 44,209 | $ | 47,918 | |||
Canada | 28,784 | 28,832 | |||||
Total net long-lived assets | $ | 72,993 | $ | 76,750 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Operating lease costs: | |||||||||||||||||||||||
Third-Party | $ | 7,576 | $ | 7,608 | $ | 15,221 | $ | 15,246 | |||||||||||||||
Related-Party | 845 | 865 | 1,691 | 1,741 | |||||||||||||||||||
Total operating lease costs | $ | 8,421 | $ | 8,473 | $ | 16,912 | $ | 16,987 | |||||||||||||||
Operating cash flow - Operating leases | $ | 16,545 | $ | 17,420 | |||||||||||||||||||
New ROU assets - Operating leases | $ | 6,922 | $ | 9,468 | |||||||||||||||||||
Weighted average remaining lease term - Operating leases | 6.1 years | 6.3 years | |||||||||||||||||||||
Weighted average discount rate - Operating leases | 10.3 | % | 10.3 | % |
Third-Party | Related-Party | Total | ||||||||||||||||||
Remainder of 2020 | $ | 15,334 | $ | 1,839 | $ | 17,173 | ||||||||||||||
2021 | 28,475 | 3,763 | 32,238 | |||||||||||||||||
2022 | 25,638 | 3,663 | 29,301 | |||||||||||||||||
2023 | 20,836 | 1,319 | 22,155 | |||||||||||||||||
2024 | 15,911 | 964 | 16,875 | |||||||||||||||||
2025 | 11,492 | 864 | 12,356 | |||||||||||||||||
Thereafter | 30,676 | 2,661 | 33,337 | |||||||||||||||||
Total | 148,362 | 15,073 | 163,435 | |||||||||||||||||
Less: Imputed interest | (40,146) | (3,522) | (43,668) | |||||||||||||||||
Operating lease liabilities | $ | 108,216 | $ | 11,551 | $ | 119,767 | ||||||||||||||
(in thousands) | Third-Party | Related-Party | Total | ||||||||
2019 | $ | 15,517 | $ | 1,840 | $ | 17,357 | |||||
2020 | 30,735 | 3,752 | 34,487 | ||||||||
2021 | 30,344 | 3,852 | 34,196 | ||||||||
2022 | 29,353 | 3,909 | 33,262 | ||||||||
2023 | 25,280 | 3,616 | 28,896 | ||||||||
Thereafter | 44,277 | 10,883 | 55,160 | ||||||||
Total | 175,506 | 27,852 | 203,358 | ||||||||
Less: Imputed interest | (45,852 | ) | (8,663 | ) | (54,515 | ) | |||||
Operating lease liabilities | $ | 129,654 | $ | 19,189 | $ | 148,843 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 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 | (1,324) | — | (1,714) | 39,414 | ||||||||||||||||||||||||||||||||||||||||||||||
Total operating (income) expense | (1,324) | — | (1,714) | 43,220 | ||||||||||||||||||||||||||||||||||||||||||||||
Pre-tax income (loss) from operations of discontinued operations | 1,324 | — | 1,714 | (39,048) | ||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) related to disposition | 331 | 834 | 429 | (46,589) | ||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) from discontinued operations | $ | 993 | $ | (834) | $ | 1,285 | $ | 7,541 | ||||||||||||||||||||||||||||||||||||||||||
(1) Includes U.K. Subsidiaries financial results from January 1, 2019 to February 25, 2019. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(in thousands) | 2019 | 2018 | 2019(1) | 2018 | |||||||||||
Revenue | $ | — | $ | 11,814 | $ | 6,957 | $ | 22,729 | |||||||
Provision for losses | — | 5,639 | 1,703 | 9,787 | |||||||||||
Net revenue | — | 6,175 | 5,254 | 12,942 | |||||||||||
Cost of providing services | |||||||||||||||
Office | — | 545 | 246 | 1,073 | |||||||||||
Other costs of providing services | — | 125 | 61 | 1,094 | |||||||||||
Advertising | — | 2,441 | 775 | 4,312 | |||||||||||
Total cost of providing services | — | 3,111 | 1,082 | 6,479 | |||||||||||
Gross margin | — | 3,064 | 4,172 | 6,463 | |||||||||||
Operating expense (income) | |||||||||||||||
Corporate, district and other expenses | — | 5,675 | 3,810 | 10,700 | |||||||||||
Interest income | — | (7 | ) | (4 | ) | (12 | ) | ||||||||
Loss on disposition | — | — | 39,414 | — | |||||||||||
Total operating expense | — | 5,668 | 43,220 | 10,688 | |||||||||||
Pre-tax (loss) income from operations of discontinued operations | — | (2,604 | ) | (39,048 | ) | (4,225 | ) | ||||||||
Income tax expense (benefit) related to disposition | 834 | 139 | (46,589 | ) | 139 | ||||||||||
Net income (loss) from discontinued operations | $ | (834 | ) | $ | (2,743 | ) | $ | 7,541 | $ | (4,364 | ) | ||||
(1) Includes U.K. Subsidiaries financial results from January 1, 2019 to February 25, 2019. |
(in thousands) | June 30, 2019 | December 31, 2018 | ||||
ASSETS | ||||||
Cash | $ | — | $ | 9,859 | ||
Restricted cash | — | 3,384 | ||||
Gross loans receivable | — | 25,256 | ||||
Less: allowance for loan losses | — | (5,387 | ) | |||
Loans receivable, net | — | 19,869 | ||||
Prepaid expenses and other | — | 1,482 | ||||
Other | — | 267 | ||||
Total assets classified as discontinued operations in the Condensed Consolidated Balance Sheets | $ | — | $ | 34,861 | ||
LIABILITIES | ||||||
Accounts payable and accrued liabilities | $ | — | $ | 8,136 | ||
Deferred revenue | — | 180 | ||||
Accrued interest | — | (5 | ) | |||
Deferred rent | — | 149 | ||||
Other long-term liabilities | — | 422 | ||||
Total liabilities classified as discontinued operations in the Condensed Consolidated Balance Sheets | $ | — | $ | 8,882 |
Six Months Ended June 30, | |||||||||||||||||
2020 | 2019(1) | ||||||||||||||||
Net cash provided by (used in) discontinued operating activities | $ | 1,714 | $ | (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. |
Six Months Ended June 30, | |||||||
(in thousands) | 2019(1) | 2018 | |||||
Net cash (used in) / provided by discontinued operating activities | $ | (504 | ) | $ | 5,458 | ||
Net cash used in discontinued investing activities | (14,213 | ) | (14,349 | ) | |||
Net cash used in discontinued financing activities | — | — | |||||
(1) Includes U.K. Subsidiaries financial results from January 1, 2019 to February 25, 2019. |
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 | — | (1,423) | (1,423) | ||||||||||||||
Goodwill at June 30, 2020 | $ | 105,922 | $ | 28,055 | $ | 133,977 |
(in thousands) | Amounts acquired on January 3, 2020 | ||||
Cash consideration transferred: | $ | 17,811 | |||
3,360 | ||||
465 | ||||
358 | ||||
1,101 | ||||
14,791 | ||||
235 | |||||
Operating lease liabilities | (235) | ||||
Total | $ | 17,811 |
June 30, 2019 | ||||||||||||||||||
(dollars in thousands) | Subsidiary Guarantors | Subsidiary Non-Guarantors | Canada SPV | CURO | Eliminations | CURO Consolidated | ||||||||||||
Assets: | ||||||||||||||||||
Cash | $ | 68,354 | $ | 23,943 | $ | — | $ | — | $ | — | $ | 92,297 | ||||||
Restricted cash | 16,198 | 2,695 | 14,819 | — | — | 33,712 | ||||||||||||
Loans receivable, net | 269,298 | 48,297 | 190,121 | — | — | 507,716 | ||||||||||||
Right of use asset - operating leases | 79,000 | 61,982 | — | — | — | 140,982 | ||||||||||||
Deferred income taxes | (7,848 | ) | — | — | 10,485 | — | 2,637 | |||||||||||
Income taxes receivable | (470 | ) | 6,395 | — | 31,654 | — | 37,579 | |||||||||||
Prepaid expenses and other | 23,038 | 7,203 | — | — | — | 30,241 | ||||||||||||
Property and equipment, net | 44,209 | 28,784 | — | — | — | 72,993 | ||||||||||||
Goodwill | 91,131 | 29,319 | — | — | — | 120,450 | ||||||||||||
Other intangibles, net | 8,420 | 22,237 | — | — | — | 30,657 | ||||||||||||
Intercompany receivable | 107,251 | — | — | — | (107,251 | ) | — | |||||||||||
Investment in subsidiaries | — | — | — | (1,515 | ) | 1,515 | — | |||||||||||
Other | 15,401 | 690 | — | — | — | 16,091 | ||||||||||||
Total assets | $ | 713,982 | $ | 231,545 | $ | 204,940 | $ | 40,624 | $ | (105,736 | ) | $ | 1,085,355 | |||||
Liabilities and Stockholders' equity: | ||||||||||||||||||
Accounts payable and accrued liabilities | $ | 44,667 | $ | (1,166 | ) | $ | 15,020 | $ | 753 | $ | — | $ | 59,274 | |||||
Deferred revenue | 5,237 | 3,430 | 45 | — | — | 8,712 | ||||||||||||
Lease liability - operating leases | 86,685 | 62,158 | — | — | — | 148,843 | ||||||||||||
Income taxes payable | (18,731 | ) | — | — | 18,731 | — | — | |||||||||||
Accrued interest | 2 | — | 713 | 18,975 | — | 19,690 | ||||||||||||
Payable to CURO Holdings Corp. | 736,920 | — | — | (736,920 | ) | — | — | |||||||||||
CSO liability for losses | 9,504 | — | — | — | — | 9,504 | ||||||||||||
Long-term debt | — | — | 90,976 | 677,536 | — | 768,512 | ||||||||||||
Intercompany payable | — | 20,002 | 87,249 | — | (107,251 | ) | — | |||||||||||
Other liabilities | 7,999 | 595 | — | — | — | 8,594 | ||||||||||||
Deferred tax liabilities | (4,171 | ) | 4,848 | — | 4,171 | — | 4,848 | |||||||||||
Total liabilities | 868,112 | 89,867 | 194,003 | (16,754 | ) | (107,251 | ) | 1,027,977 | ||||||||||
Stockholder’s equity | (154,130 | ) | 141,678 | 10,937 | 57,378 | 1,515 | 57,378 | |||||||||||
Total liabilities and stockholder’s equity | $ | 713,982 | $ | 231,545 | $ | 204,940 | $ | 40,624 | $ | (105,736 | ) | $ | 1,085,355 |
December 31, 2018 | ||||||||||||||||||
(dollars in thousands) | Subsidiary Guarantors | Subsidiary Non-Guarantors | Canada SPV | CURO | Eliminations | CURO Consolidated | ||||||||||||
Assets: | ||||||||||||||||||
Cash | $ | 42,403 | $ | 18,772 | $ | — | $ | — | $ | — | $ | 61,175 | ||||||
Restricted cash | 9,993 | 2,606 | 12,840 | — | — | 25,439 | ||||||||||||
Loans receivable, net | 304,542 | 56,805 | 136,187 | — | — | 497,534 | ||||||||||||
Deferred income taxes | — | 1,534 | — | — | — | 1,534 | ||||||||||||
Income taxes receivable | 7,190 | — | — | 9,551 | — | 16,741 | ||||||||||||
Prepaid expenses and other | 37,866 | 5,722 | — | — | — | 43,588 | ||||||||||||
Property and equipment, net | 47,918 | 28,832 | — | — | — | 76,750 | ||||||||||||
Goodwill | 91,131 | 28,150 | — | — | — | 119,281 | ||||||||||||
Other intangibles, net | 8,418 | 21,366 | — | — | — | 29,784 | ||||||||||||
Intercompany receivable | 77,009 | — | — | — | (77,009 | ) | — | |||||||||||
Investment in subsidiaries | — | — | — | (101,665 | ) | 101,665 | — | |||||||||||
Other | 12,253 | 677 | — | — | — | 12,930 | ||||||||||||
Assets from discontinued operations | — | 2,406 | — | — | 32,455 | 34,861 | ||||||||||||
Total assets | $ | 638,723 | $ | 166,870 | $ | 149,027 | $ | (92,114 | ) | $ | 57,111 | $ | 919,617 | |||||
Liabilities and Stockholder's equity: | ||||||||||||||||||
Accounts payable and accrued liabilities | $ | 38,240 | $ | 5,734 | $ | 4,980 | $ | 192 | $ | — | $ | 49,146 | ||||||
Deferred revenue | 5,981 | 3,462 | 40 | — | — | 9,483 | ||||||||||||
Income taxes payable | — | 1,579 | — | — | — | 1,579 | ||||||||||||
Accrued interest | 149 | — | 831 | 19,924 | — | 20,904 | ||||||||||||
Payable to CURO Holdings Corp. | 768,345 | — | — | (768,345 | ) | — | — | |||||||||||
CSO liability for losses | 12,007 | — | — | — | — | 12,007 | ||||||||||||
Deferred rent | 9,559 | 1,292 | — | — | — | 10,851 | ||||||||||||
Long-term debt | 20,000 | — | 107,479 | 676,661 | — | 804,140 | ||||||||||||
Subordinated shareholder debt | — | 2,196 | — | — | — | 2,196 | ||||||||||||
Intercompany payable | — | 224 | 44,330 | — | (44,554 | ) | — | |||||||||||
Other liabilities | 4,967 | 833 | — | — | — | 5,800 | ||||||||||||
Deferred tax liabilities | 15,175 | — | — | (1,445 | ) | — | 13,730 | |||||||||||
Liabilities from discontinued operations | — | 8,882 | — | — | — | 8,882 | ||||||||||||
Total liabilities | 874,423 | 24,202 | 157,660 | (73,013 | ) | (44,554 | ) | 938,718 | ||||||||||
Stockholder’s equity | (235,700 | ) | 142,668 | (8,633 | ) | (19,101 | ) | 101,665 | (19,101 | ) | ||||||||
Total liabilities and stockholder’s equity | $ | 638,723 | $ | 166,870 | $ | 149,027 | $ | (92,114 | ) | $ | 57,111 | $ | 919,617 |
Three Months Ended June 30, 2019 | ||||||||||||||||||
(dollars in thousands) | Subsidiary Guarantors | Subsidiary Non-Guarantors | Canada SPV | CURO | Eliminations | CURO Consolidated | ||||||||||||
Revenue | $ | 210,046 | $ | 28,162 | $ | 26,092 | $ | — | $ | — | $ | 264,300 | ||||||
Provision for losses | 92,552 | 6,344 | 13,114 | — | — | 112,010 | ||||||||||||
Net revenue | 117,494 | 21,818 | 12,978 | — | — | 152,290 | ||||||||||||
Cost of providing services: | ||||||||||||||||||
Salaries and benefits | 17,422 | 8,664 | — | — | — | 26,086 | ||||||||||||
Occupancy | 8,033 | 5,899 | — | — | — | 13,932 | ||||||||||||
Office | 4,004 | 1,453 | — | — | — | 5,457 | ||||||||||||
Other costs of providing services | 11,789 | 1,065 | — | — | — | 12,854 | ||||||||||||
Advertising | 11,179 | 1,601 | — | — | — | 12,780 | ||||||||||||
Total cost of providing services | 52,427 | 18,682 | — | — | — | 71,109 | ||||||||||||
Gross margin | 65,067 | 3,136 | 12,978 | — | — | 81,181 | ||||||||||||
Operating (income) expense: | ||||||||||||||||||
Corporate, district and other expenses | 30,766 | 6,422 | (781 | ) | 2,631 | — | 39,038 | |||||||||||
Intercompany management fee | (3,237 | ) | 3,229 | 8 | — | — | — | |||||||||||
Interest expense | 27 | 7 | 2,375 | 14,614 | — | 17,023 | ||||||||||||
Intercompany interest (income) expense | (1,513 | ) | 890 | 623 | — | — | — | |||||||||||
Total operating expense | 26,043 | 10,548 | 2,225 | 17,245 | — | 56,061 | ||||||||||||
Income (loss) from continuing operations before income taxes | 39,024 | (7,412 | ) | 10,753 | (17,245 | ) | — | 25,120 | ||||||||||
Provision (benefit) for income tax expense | 9,591 | 1,094 | — | (3,232 | ) | — | 7,453 | |||||||||||
Net income (loss) from continuing operations | 29,433 | (8,506 | ) | 10,753 | (14,013 | ) | — | 17,667 | ||||||||||
Net loss on discontinued operations | — | (834 | ) | — | — | — | (834 | ) | ||||||||||
Net (loss) income | 29,433 | (9,340 | ) | 10,753 | (14,013 | ) | — | 16,833 | ||||||||||
Equity in net income (loss) of subsidiaries: | ||||||||||||||||||
CFTC | — | — | — | 30,846 | (30,846 | ) | — | |||||||||||
Guarantor Subsidiaries | 29,433 | — | — | — | (29,433 | ) | — | |||||||||||
Non-Guarantor Subsidiaries | (9,340 | ) | — | — | — | 9,340 | — | |||||||||||
SPV Subs | 10,753 | — | — | — | (10,753 | ) | — | |||||||||||
Net income (loss) attributable to CURO | $ | 60,279 | $ | (9,340 | ) | $ | 10,753 | $ | 16,833 | $ | (61,692 | ) | $ | 16,833 |
Three Months Ended June 30, 2018 | ||||||||||||||||||||||||||||||
(dollars in thousands) | CFTC | CURO Intermediate | Subsidiary Guarantors | Subsidiary Non-Guarantors | SPV Subs | Eliminations | CFTC Consolidated | CURO | Eliminations | CURO Consolidated | ||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 118,034 | $ | 47,043 | $ | 72,092 | $ | — | $ | 237,169 | $ | — | $ | — | $ | 237,169 | ||||||||||
Provision for losses | — | — | 46,320 | 14,360 | 25,667 | — | 86,347 | — | — | 86,347 | ||||||||||||||||||||
Net revenue | — | — | 71,714 | 32,683 | 46,425 | — | 150,822 | — | — | 150,822 | ||||||||||||||||||||
Cost of providing services: | ||||||||||||||||||||||||||||||
Salaries and benefits | — | — | 18,070 | 8,838 | — | — | 26,908 | — | — | 26,908 | ||||||||||||||||||||
Occupancy | — | — | 7,643 | 5,677 | — | — | 13,320 | — | — | 13,320 | ||||||||||||||||||||
Office | — | — | 4,247 | 1,285 | — | — | 5,532 | — | — | 5,532 | ||||||||||||||||||||
Other store operating expenses | — | — | 11,254 | 881 | 466 | — | 12,601 | — | — | 12,601 | ||||||||||||||||||||
Advertising | — | — | 12,409 | 2,704 | — | — | 15,113 | — | — | 15,113 | ||||||||||||||||||||
Total cost of providing services | — | — | 53,623 | 19,385 | 466 | — | 73,474 | — | — | 73,474 | ||||||||||||||||||||
Gross Margin | — | — | 18,091 | 13,298 | 45,959 | — | 77,348 | — | — | 77,348 | ||||||||||||||||||||
Operating (income) expense: | ||||||||||||||||||||||||||||||
Corporate, district and other expenses | 458 | 18 | 25,383 | 4,759 | 46 | — | 30,664 | 2,316 | — | 32,980 | ||||||||||||||||||||
Intercompany management fee | — | — | (6,920 | ) | 3,281 | 3,639 | — | — | — | — | — | |||||||||||||||||||
Interest expense | 16,585 | — | (60 | ) | 7 | 3,940 | — | 20,472 | — | — | 20,472 | |||||||||||||||||||
Intercompany interest (income) expense | — | (904 | ) | (180 | ) | 1,084 | — | — | — | — | — | — | ||||||||||||||||||
Loss on extinguishment of debt | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Total operating expense | 17,043 | (886 | ) | 18,223 | 9,131 | 7,625 | — | 51,136 | 2,316 | — | 53,452 | |||||||||||||||||||
(Loss) income from continuing operations before income taxes | (17,043 | ) | 886 | (132 | ) | 4,167 | 38,334 | — | 26,212 | (2,316 | ) | — | 23,896 | |||||||||||||||||
(Benefit) provision for income tax expense | (5,418 | ) | 13,668 | (4,458 | ) | 1,962 | — | — | 5,754 | (576 | ) | — | 5,178 | |||||||||||||||||
Net (loss) income from continuing operations | (11,625 | ) | (12,782 | ) | 4,326 | 2,205 | 38,334 | — | 20,458 | (1,740 | ) | — | 18,718 | |||||||||||||||||
Net loss from discontinued operations | — | — | — | (2,743 | ) | — | — | (2,743 | ) | — | — | (2,743 | ) | |||||||||||||||||
Net (loss) income | (11,625 | ) | (12,782 | ) | 4,326 | (538 | ) | 38,334 | — | 17,715 | (1,740 | ) | — | 15,975 | ||||||||||||||||
Equity in net income (loss) of subsidiaries: | ||||||||||||||||||||||||||||||
CFTC | — | — | — | — | — | — | — | 20,458 | (20,458 | ) | — | |||||||||||||||||||
CURO Intermediate | (12,782 | ) | — | — | — | — | 12,782 | — | — | — | — | |||||||||||||||||||
Guarantor Subsidiaries | 4,326 | — | — | — | — | (4,326 | ) | — | — | — | — | |||||||||||||||||||
Non-Guarantor Subsidiaries | 2,205 | — | — | — | — | (2,205 | ) | — | — | — | — | |||||||||||||||||||
SPV Subs | 38,334 | — | — | — | — | (38,334 | ) | — | — | — | — | |||||||||||||||||||
Net income (loss) attributable to CURO | $ | 20,458 | $ | (12,782 | ) | $ | 4,326 | $ | (538 | ) | $ | 38,334 | $ | (32,083 | ) | $ | 17,715 | $ | 18,718 | $ | (20,458 | ) | $ | 15,975 |
Six Months Ended June 30, 2019 | ||||||||||||||||||
(dollars in thousands) | Subsidiary Guarantors | Subsidiary Non-Guarantors | Canada SPV | CURO | Eliminations | CURO Consolidated | ||||||||||||
Revenue | $ | 436,165 | $ | 54,936 | $ | 51,138 | $ | — | $ | — | $ | 542,239 | ||||||
Provision for losses | 177,532 | 10,443 | 26,420 | — | — | 214,395 | ||||||||||||
Net revenue | 258,633 | 44,493 | 24,718 | — | — | 327,844 | ||||||||||||
Cost of providing services: | ||||||||||||||||||
Salaries and benefits | 37,373 | 17,414 | — | — | — | 54,787 | ||||||||||||
Occupancy | 16,043 | 12,126 | — | — | — | 28,169 | ||||||||||||
Office | 7,893 | 2,677 | — | — | — | 10,570 | ||||||||||||
Other costs of providing services | 24,921 | 2,153 | — | — | — | 27,074 | ||||||||||||
Advertising | 17,533 | 3,033 | — | — | — | 20,566 | ||||||||||||
Total cost of providing services | 103,763 | 37,403 | — | — | — | 141,166 | ||||||||||||
Gross margin | 154,870 | 7,090 | 24,718 | — | — | 186,678 | ||||||||||||
Operating (income) expense: | ||||||||||||||||||
Corporate, district and other expenses | 72,304 | 11,604 | (755 | ) | 4,973 | — | 88,126 | |||||||||||
Intercompany management fee | (6,300 | ) | 6,284 | 16 | — | — | — | |||||||||||
Interest expense | 317 | 79 | 5,265 | 29,052 | — | 34,713 | ||||||||||||
Intercompany interest (income) expense | (2,393 | ) | 1,770 | 623 | — | — | — | |||||||||||
Total operating expense | 63,928 | 19,737 | 5,149 | 34,025 | — | 122,839 | ||||||||||||
Income (loss) from continuing operations before income taxes | 90,942 | (12,647 | ) | 19,569 | (34,025 | ) | — | 63,839 | ||||||||||
Provision (benefit) for income tax expense | 23,610 | 2,129 | — | (8,240 | ) | — | 17,499 | |||||||||||
Net income (loss) from continuing operations | 67,332 | (14,776 | ) | 19,569 | (25,785 | ) | — | 46,340 | ||||||||||
Net loss on discontinued operations | — | 7,541 | — | — | — | 7,541 | ||||||||||||
Net (loss) income | 67,332 | (7,235 | ) | 19,569 | (25,785 | ) | — | 53,881 | ||||||||||
Equity in net income (loss) of subsidiaries: | ||||||||||||||||||
CFTC | — | — | — | 79,666 | (79,666 | ) | — | |||||||||||
Guarantor Subsidiaries | 67,332 | — | — | — | (67,332 | ) | — | |||||||||||
Non-Guarantor Subsidiaries | (7,235 | ) | — | — | — | 7,235 | — | |||||||||||
SPV Subs | 19,569 | — | — | — | (19,569 | ) | — | |||||||||||
Net income (loss) attributable to CURO | $ | 146,998 | $ | (7,235 | ) | $ | 19,569 | $ | 53,881 | $ | (159,332 | ) | $ | 53,881 |
Six Months Ended June 30, 2018 | ||||||||||||||||||||||||||||||
(dollars in thousands) | CFTC | CURO Intermediate | Subsidiary Guarantors | Subsidiary Non-Guarantors | SPV Subs | Eliminations | CFTC Consolidated | CURO | Eliminations | CURO Consolidated | ||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 246,442 | $ | 93,293 | $ | 148,277 | $ | — | $ | 488,012 | $ | — | $ | — | $ | 488,012 | ||||||||||
Provision for losses | — | — | 82,089 | 26,910 | 54,231 | — | 163,230 | — | — | 163,230 | ||||||||||||||||||||
Net revenue | — | — | 164,353 | 66,383 | 94,046 | — | 324,782 | — | — | 324,782 | ||||||||||||||||||||
Cost of providing services: | ||||||||||||||||||||||||||||||
Salaries and benefits | — | — | 36,089 | 17,737 | — | — | 53,826 | — | — | 53,826 | ||||||||||||||||||||
Occupancy | — | — | 15,289 | 11,458 | — | — | 26,747 | — | — | 26,747 | ||||||||||||||||||||
Office | — | — | 9,830 | 2,155 | — | — | 11,985 | — | — | 11,985 | ||||||||||||||||||||
Other store operating expenses | — | — | 23,284 | 1,801 | 947 | — | 26,032 | — | — | 26,032 | ||||||||||||||||||||
Advertising | — | — | 17,568 | 5,430 | — | — | 22,998 | — | — | 22,998 | ||||||||||||||||||||
Total cost of providing services | — | — | 102,060 | 38,581 | 947 | — | 141,588 | — | — | 141,588 | ||||||||||||||||||||
Gross Margin | — | — | 62,293 | 27,802 | 93,099 | — | 183,194 | — | — | 183,194 | ||||||||||||||||||||
Operating (income) expense: | ||||||||||||||||||||||||||||||
Corporate, district and other expenses | 906 | 25 | 53,375 | 9,656 | 76 | — | 64,038 | 4,371 | — | 68,409 | ||||||||||||||||||||
Intercompany management fee | — | — | (13,822 | ) | 6,775 | 7,047 | — | — | — | — | — | |||||||||||||||||||
Interest expense | 34,907 | — | (172 | ) | 64 | 8,027 | — | 42,826 | — | — | 42,826 | |||||||||||||||||||
Intercompany interest (income) expense | — | (1,784 | ) | (259 | ) | 2,043 | — | — | — | — | — | — | ||||||||||||||||||
Loss on extinguishment of debt | 11,683 | — | — | — | — | — | 11,683 | — | — | 11,683 | ||||||||||||||||||||
Total operating expense | 47,496 | (1,759 | ) | 39,122 | 18,538 | 15,150 | — | 118,547 | 4,371 | — | 122,918 | |||||||||||||||||||
(Loss) income from continuing operations before income taxes | (47,496 | ) | 1,759 | 23,171 | 9,264 | 77,949 | — | 64,647 | (4,371 | ) | — | 60,276 | ||||||||||||||||||
(Benefit) provision for income tax expense | (12,259 | ) | 32,165 | (6,043 | ) | 3,891 | — | — | 17,754 | (1,109 | ) | — | 16,645 | |||||||||||||||||
Net (loss) income from continuing operations | (35,237 | ) | (30,406 | ) | 29,214 | 5,373 | 77,949 | — | 46,893 | (3,262 | ) | — | 43,631 | |||||||||||||||||
Net loss from discontinued operations | — | — | — | (4,364 | ) | — | — | (4,364 | ) | — | — | (4,364 | ) | |||||||||||||||||
Net (loss) income | (35,237 | ) | (30,406 | ) | 29,214 | 1,009 | 77,949 | — | 42,529 | (3,262 | ) | — | 39,267 | |||||||||||||||||
Equity in net income (loss) of subsidiaries: | ||||||||||||||||||||||||||||||
CFTC | — | — | — | — | — | — | — | 42,529 | (42,529 | ) | — | |||||||||||||||||||
CURO Intermediate | (30,406 | ) | — | — | — | — | 30,406 | — | — | — | — | |||||||||||||||||||
Guarantor Subsidiaries | 29,214 | — | — | — | — | (29,214 | ) | — | — | — | — | |||||||||||||||||||
Non-Guarantor Subsidiaries | 1,009 | — | — | — | — | (1,009 | ) | — | — | — | — | |||||||||||||||||||
SPV Subs | 77,949 | — | — | — | — | (77,949 | ) | — | — | — | — | |||||||||||||||||||
Net income (loss) attributable to CURO | $ | 42,529 | $ | (30,406 | ) | $ | 29,214 | $ | 1,009 | $ | 77,949 | $ | (77,766 | ) | $ | 42,529 | $ | 39,267 | $ | (42,529 | ) | $ | 39,267 |
Six Months Ended June 30, 2019 | ||||||||||||||||||
(dollars in thousands) | Subsidiary Guarantors | Subsidiary Non-Guarantors | Canada SPV | CURO | Eliminations | CURO Consolidated | ||||||||||||
Cash flows from operating activities | ||||||||||||||||||
Net cash provided by (used in) continuing operating activities | $ | 204,323 | $ | 10,929 | $ | 93,690 | $ | 1,833 | $ | 1,544 | $ | 312,319 | ||||||
Net cash used in discontinued operating activities | — | (504 | ) | — | — | — | (504 | ) | ||||||||||
Cash flows from investing activities: | ||||||||||||||||||
Purchase of property, equipment and software | (4,998 | ) | (1,166 | ) | — | — | — | (6,164 | ) | |||||||||
Investment in Cognical Holdings | (4,368 | ) | — | — | — | — | (4,368 | ) | ||||||||||
Originations of loans, net | (142,871 | ) | (3,227 | ) | (71,101 | ) | — | — | (217,199 | ) | ||||||||
Net cash (used in) provided by continuing investing activities | (152,237 | ) | (4,393 | ) | (71,101 | ) | — | — | (227,731 | ) | ||||||||
Net cash used in discontinued investing activities | — | (14,213 | ) | — | — | — | (14,213 | ) | ||||||||||
Cash flows from financing activities: | ||||||||||||||||||
Proceeds from Non-Recourse U.S. SPV facility | — | — | — | — | — | — | ||||||||||||
Payments on Non-Recourse U.S. SPV facility | — | — | — | — | — | — | ||||||||||||
Proceeds from Non-Recourse Canada SPV facility | — | — | 3,750 | — | — | 3,750 | ||||||||||||
Payments on Non-Recourse Canada SPV facility | — | — | (24,752 | ) | — | — | (24,752 | ) | ||||||||||
Proceeds from revolving credit facilities | 30,000 | 38,002 | — | — | — | 68,002 | ||||||||||||
Payments on revolving credit facilities | (50,000 | ) | (38,002 | ) | — | — | — | (88,002 | ) | |||||||||
Payments on subordinated stockholder debt | — | (2,245 | ) | — | — | — | (2,245 | ) | ||||||||||
Proceeds from exercise of stock options | 69 | — | — | (42 | ) | — | 27 | |||||||||||
Debt issuance costs paid | — | — | (169 | ) | (29 | ) | — | (198 | ) | |||||||||
Repurchase of common stock | — | — | — | (1,762 | ) | — | (1,762 | ) | ||||||||||
Net cash used in provided by financing activities (1) | (19,931 | ) | (2,245 | ) | (21,171 | ) | (1,833 | ) | — | (45,180 | ) | |||||||
Effect of exchange rate changes on cash and restricted cash | — | 2,444 | 561 | — | (1,544 | ) | 1,461 | |||||||||||
Net increase (decrease) in cash and restricted cash | 32,155 | (7,982 | ) | 1,979 | — | — | 26,152 | |||||||||||
Cash and restricted cash at beginning of period | 52,397 | 34,620 | 12,840 | — | — | 99,857 | ||||||||||||
Cash at end of period | $ | 84,552 | $ | 26,638 | $ | 14,819 | $ | — | $ | — | $ | 126,009 | ||||||
(1) Financing activities include continuing operations only and were not impacted by discontinued operations |
Six Months Ended June 30, 2018 | |||||||||||||||||||||||||||
(dollars in thousands) | CFTC | CURO Intermediate | Subsidiary Guarantors | Subsidiary Non-Guarantors | SPV Subs | Eliminations | CFTC Consolidated | CURO | CURO Consolidated | ||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||||||
Net cash provided (used) in continuing operating activities | $ | 87,848 | $ | — | $ | 38,259 | $ | 53,104 | $ | 67,767 | $ | 12,305 | $ | 259,283 | $ | (12,550 | ) | $ | 246,733 | ||||||||
Net cash provided by (used in) discontinued operating activities | — | — | — | 14,225 | — | (8,767 | ) | 5,458 | — | 5,458 | |||||||||||||||||
Net cash provided by (used in) operating activities | 87,848 | — | 38,259 | 67,329 | 67,767 | 3,538 | 264,741 | (12,550 | ) | 252,191 | |||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||||
Purchase of property, equipment and software | — | — | (1,983 | ) | (974 | ) | — | — | (2,957 | ) | — | (2,957 | ) | ||||||||||||||
Originations of loans, net | — | — | (84,640 | ) | (48,795 | ) | (61,201 | ) | — | (194,636 | ) | — | (194,636 | ) | |||||||||||||
Investment in Cognical Holdings | (958 | ) | — | — | — | — | — | (958 | ) | — | (958 | ) | |||||||||||||||
Net cash (used in) provided by continuing investing activities | (958 | ) | — | (86,623 | ) | (49,769 | ) | (61,201 | ) | — | (198,551 | ) | — | (198,551 | ) | ||||||||||||
Net cash provided by (used in) discontinued investing activities | — | — | — | (14,349 | ) | — | — | (14,349 | ) | — | (14,349 | ) | |||||||||||||||
Net cash provided by (used in) investing activities | (958 | ) | — | (86,623 | ) | (64,118 | ) | (61,201 | ) | — | (212,900 | ) | — | (212,900 | ) | ||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||||
Proceeds from Non-Recourse U.S. SPV facility | — | — | — | — | 13,000 | — | 13,000 | — | 13,000 | ||||||||||||||||||
Payments on Non-Recourse U.S. SPV facility | — | — | — | — | (19,163 | ) | — | (19,163 | ) | — | (19,163 | ) | |||||||||||||||
Proceeds from revolving credit facilities | 10,000 | — | — | 8,798 | — | — | 18,798 | — | 18,798 | ||||||||||||||||||
Payments on revolving credit facilities | (10,000 | ) | — | — | (8,798 | ) | — | — | (18,798 | ) | — | (18,798 | ) | ||||||||||||||
Net proceeds from issuance of common stock | — | — | — | — | — | — | — | 12,431 | 12,431 | ||||||||||||||||||
Proceeds from exercise of stock options | — | — | — | — | — | — | — | 39 | 39 | ||||||||||||||||||
Payments on 12.00% Senior Secured Notes | (77,500 | ) | — | — | — | — | — | (77,500 | ) | — | (77,500 | ) | |||||||||||||||
Payments of call premiums from early debt extinguishments | (9,300 | ) | — | — | — | — | — | (9,300 | ) | — | (9,300 | ) | |||||||||||||||
Debt issuance costs paid | (90 | ) | — | — | (78 | ) | — | — | (168 | ) | — | (168 | ) | ||||||||||||||
Net cash (used in) provided by financing activities (1) | (86,890 | ) | — | — | (78 | ) | (6,163 | ) | — | (93,131 | ) | 12,470 | (80,661 | ) | |||||||||||||
Effect of exchange rate changes on cash | — | — | — | (651 | ) | — | (3,538 | ) | (4,189 | ) | — | (4,189 | ) | ||||||||||||||
Net (decrease) increase in cash and restricted cash | — | — | (48,364 | ) | 2,482 | 403 | — | (45,479 | ) | (80 | ) | (45,559 | ) | ||||||||||||||
Cash and restricted cash at beginning of period | — | — | 119,056 | 48,484 | 6,871 | — | 174,411 | 80 | 174,491 | ||||||||||||||||||
Cash and restricted cash at end of period | — | — | 70,692 | 50,966 | 7,274 | — | 128,932 | — | 128,932 | ||||||||||||||||||
Less: Cash and restricted cash at end of period of Discontinued Operations | — | — | — | 12,460 | — | — | 12,460 | — | 12,460 | ||||||||||||||||||
Cash and restricted cash at end of period of Continuing Operations | $ | — | $ | — | $ | 70,692 | $ | 38,506 | $ | 7,274 | $ | — | $ | 116,472 | $ | — | $ | 116,472 | |||||||||
Six Months Ended June 30, | ||||
(in thousands, except per share amounts and number of share amounts) | 2019 | |||
Total number of shares repurchased | 244,200 | |||
Average price paid per share | $ | 10.26 | ||
Total value of shares repurchased | $ | 2,507 | ||
Total authorized repurchase amount | $ | 50,000 | ||
Total value of shares repurchased | 2,507 | |||
Total remaining authorized repurchase amount | $ | 47,493 |
July 1 - August 2 | ||||
(in thousands, except per share amounts and number of share amounts) | 2019 | |||
Total number of shares repurchased | 989,500 | |||
Average price paid per share | $ | 10.85 | ||
Total value of shares repurchased | $ | 10,731 |
For the Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
June 30, 2020 | June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||
U.S. | Canada | Total | U.S. | Canada | Total | |||||||||||||||||||||||||||||||||||||||
Unsecured Installment | $ | 69,143 | $ | 1,286 | $ | 70,429 | $ | 120,482 | $ | 1,630 | $ | 122,112 | ||||||||||||||||||||||||||||||||
Secured Installment | 19,401 | — | 19,401 | 26,076 | — | 26,076 | ||||||||||||||||||||||||||||||||||||||
Open-End | 30,917 | 25,819 | 56,736 | 32,318 | 22,654 | 54,972 | ||||||||||||||||||||||||||||||||||||||
Single-Pay | 14,317 | 8,415 | 22,732 | 26,425 | 19,103 | 45,528 | ||||||||||||||||||||||||||||||||||||||
Ancillary | 3,542 | 9,669 | 13,211 | 4,745 | 10,867 | 15,612 | ||||||||||||||||||||||||||||||||||||||
Total revenue | $ | 137,320 | $ | 45,189 | $ | 182,509 | $ | 210,046 | $ | 54,254 | $ | 264,300 |
For the Three Months Ended | ||||||||||||||||||||
June 30, 2019 | June 30, 2018 | |||||||||||||||||||
(in thousands, unaudited) | U.S. | Canada | Total | U.S. | Canada | Total | ||||||||||||||
Unsecured Installment | $ | 120,482 | $ | 1,630 | $ | 122,112 | $ | 111,244 | $ | 3,692 | $ | 114,936 | ||||||||
Secured Installment | 26,076 | — | 26,076 | 25,777 | — | 25,777 | ||||||||||||||
Open-End | 32,318 | 22,654 | 54,972 | 23,261 | 3,961 | 27,222 | ||||||||||||||
Single-Pay | 26,425 | 19,103 | 45,528 | 24,978 | 33,347 | 58,325 | ||||||||||||||
Ancillary | 4,745 | 10,867 | 15,612 | 4,866 | 6,043 | 10,909 | ||||||||||||||
Total revenue | $ | 210,046 | $ | 54,254 | $ | 264,300 | $ | 190,126 | $ | 47,043 | $ | 237,169 |
For the Six Months Ended | ||||||||||||||||||||
June 30, 2019 | June 30, 2018 | |||||||||||||||||||
(in thousands, unaudited) | U.S. | Canada | Total | U.S. | Canada | Total | ||||||||||||||
Unsecured Installment | $ | 254,485 | $ | 3,405 | $ | 257,890 | $ | 231,720 | $ | 8,595 | $ | 240,315 | ||||||||
Secured Installment | 53,553 | — | 53,553 | 52,633 | — | 52,633 | ||||||||||||||
Open-End | 64,911 | 42,930 | 107,841 | 49,095 | 5,350 | 54,445 | ||||||||||||||
Single-Pay | 53,593 | 38,696 | 92,289 | 51,043 | 67,639 | 118,682 | ||||||||||||||
Ancillary | 9,623 | 21,043 | 30,666 | 10,228 | 11,709 | 21,937 | ||||||||||||||
Total revenue | $ | 436,165 | $ | 106,074 | $ | 542,239 | $ | 394,719 | $ | 93,293 | $ | 488,012 |
For the Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
June 30, 2020 | June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||
U.S. | Canada | Total | U.S. | Canada | Total | |||||||||||||||||||||||||||||||||||||||
Unsecured Installment | $ | 189,972 | $ | 2,866 | $ | 192,838 | $ | 254,485 | $ | 3,405 | $ | 257,890 | ||||||||||||||||||||||||||||||||
Secured Installment | 45,687 | — | 45,687 | 53,553 | — | 53,553 | ||||||||||||||||||||||||||||||||||||||
Open-End | 72,907 | 54,811 | 127,718 | 64,911 | 42,930 | 107,841 | ||||||||||||||||||||||||||||||||||||||
Single-Pay | 42,471 | 25,418 | 67,889 | 53,593 | 38,696 | 92,289 | ||||||||||||||||||||||||||||||||||||||
Ancillary | 8,051 | 21,132 | 29,183 | 9,623 | 21,043 | 30,666 | ||||||||||||||||||||||||||||||||||||||
Total revenue | $ | 359,088 | $ | 104,227 | $ | 463,315 | $ | 436,165 | $ | 106,074 | $ | 542,239 |
As of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2020 | March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company Owned gross loans receivable | $ | 456.5 | $ | 564.4 | $ | 665.8 | $ | 657.6 | $ | 609.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross loans receivable Guaranteed by the Company | 34.1 | 55.9 | 76.7 | 73.1 | 67.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross combined loans receivable (1) | $ | 490.6 | $ | 620.3 | $ | 742.5 | $ | 730.7 | $ | 676.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) See "Non-GAAP Financial Measures" below for definition and additional information. |
2019 | 2018 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands, unaudited) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | (dollars in thousands, unaudited) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Installment loans: | Unsecured Installment loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue - Company Owned | $ | 59,814 | $ | 65,542 | $ | 69,748 | $ | 64,146 | $ | 54,868 | Revenue - Company Owned | $ | 33,405 | $ | 55,569 | $ | 63,428 | $ | 65,809 | $ | 59,814 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for losses - Company Owned | 33,514 | 33,845 | 39,565 | 32,946 | 23,219 | Provision for losses - Company Owned | 12,932 | 26,182 | 33,183 | 31,891 | 33,514 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenue - Company Owned | $ | 26,300 | $ | 31,697 | $ | 30,183 | $ | 31,200 | $ | 31,649 | Net revenue - Company Owned | $ | 20,473 | $ | 29,387 | $ | 30,245 | $ | 33,918 | $ | 26,300 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net charge-offs - Company Owned | $ | 31,970 | $ | 37,919 | $ | 37,951 | $ | 27,308 | $ | 26,527 | Net charge-offs - Company Owned | $ | 23,110 | $ | 32,775 | $ | 35,729 | $ | 28,973 | $ | 31,970 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue - Guaranteed by the Company | $ | 62,298 | $ | 70,236 | $ | 75,559 | $ | 73,514 | $ | 60,069 | Revenue - Guaranteed by the Company | $ | 37,024 | $ | 66,840 | $ | 72,183 | $ | 71,424 | $ | 62,298 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for losses - Guaranteed by the Company | 28,336 | 27,422 | 37,352 | 39,552 | 26,974 | Provision for losses - Guaranteed by the Company | 11,418 | 26,338 | 34,858 | 36,664 | 28,336 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenue - Guaranteed by the Company | $ | 33,962 | $ | 42,814 | $ | 38,207 | $ | 33,962 | $ | 33,095 | Net revenue - Guaranteed by the Company | $ | 25,606 | $ | 40,502 | $ | 37,325 | $ | 34,760 | $ | 33,962 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net charge-offs - Guaranteed by the Company | $ | 27,486 | $ | 30,421 | $ | 38,522 | $ | 37,995 | $ | 25,667 | Net charge-offs - Guaranteed by the Company | $ | 15,432 | $ | 27,749 | $ | 34,486 | $ | 35,916 | $ | 27,486 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Installment gross combined loans receivable: | Unsecured Installment gross combined loans receivable: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company Owned | $ | 164,722 | $ | 161,716 | $ | 190,403 | $ | 185,130 | $ | 160,285 | Company Owned | $ | 81,601 | $ | 123,118 | $ | 160,782 | $ | 174,489 | $ | 164,722 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guaranteed by the Company (1)(2) | 65,055 | 59,740 | 77,451 | 75,807 | 66,351 | Guaranteed by the Company (1)(2) | 33,082 | 54,097 | 74,317 | 70,704 | 65,055 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Installment gross combined loans receivable (1)(2) | $ | 229,777 | $ | 221,456 | $ | 267,854 | $ | 260,937 | $ | 226,636 | Unsecured Installment gross combined loans receivable (1)(2) | $ | 114,683 | $ | 177,215 | $ | 235,099 | $ | 245,193 | $ | 229,777 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average gross loans receivable: | Average gross loans receivable: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Unsecured Installment gross loans receivable - Company Owned | $ | 163,219 | $ | 176,060 | $ | 187,767 | $ | 172,708 | $ | 158,121 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Unsecured Installment gross loans receivable - Guaranteed by the Company | $ | 62,398 | $ | 68,596 | $ | 76,629 | $ | 71,079 | $ | 60,342 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Unsecured Installment gross loans receivable - Company Owned (3) | Average Unsecured Installment gross loans receivable - Company Owned (3) | $ | 102,360 | $ | 141,950 | $ | 167,636 | $ | 169,606 | $ | 163,219 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Unsecured Installment gross loans receivable - Guaranteed by the Company (3) | Average Unsecured Installment gross loans receivable - Guaranteed by the Company (3) | $ | 43,590 | $ | 64,207 | $ | 72,511 | $ | 67,880 | $ | 62,398 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses and CSO liability for losses: | Allowance for loan losses and CSO liability for losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Installment Allowance for loan losses (3) | $ | 35,223 | $ | 33,666 | $ | 37,716 | $ | 36,160 | $ | 30,291 | Unsecured Installment Allowance for loan losses (3) | $ | 18,451 | $ | 28,965 | $ | 35,587 | $ | 38,127 | $ | 35,223 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Installment CSO liability for losses (3) | $ | 9,433 | $ | 8,584 | $ | 11,582 | $ | 12,750 | $ | 11,193 | Unsecured Installment CSO liability for losses (3) | $ | 5,128 | $ | 9,142 | $ | 10,553 | $ | 10,181 | $ | 9,433 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Installment Allowance for loan losses as a percentage of Unsecured Installment gross loans receivable | 21.4 | % | 20.8 | % | 19.8 | % | 19.5 | % | 18.9 | % | Unsecured Installment Allowance for loan losses as a percentage of Unsecured Installment gross loans receivable | 22.6 | % | 23.5 | % | 22.1 | % | 21.9 | % | 21.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Installment CSO liability for losses as a percentage of Unsecured Installment gross loans guaranteed by the Company | 14.5 | % | 14.4 | % | 15.0 | % | 16.8 | % | 16.9 | % | Unsecured Installment CSO liability for losses as a percentage of Unsecured Installment gross loans guaranteed by the Company | 15.5 | % | 16.9 | % | 14.2 | % | 14.4 | % | 14.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Installment past-due balances: | Unsecured Installment past-due balances: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Installment gross loans receivable | $ | 38,037 | $ | 40,801 | $ | 49,087 | $ | 49,637 | $ | 36,125 | Unsecured Installment gross loans receivable | $ | 17,766 | $ | 34,966 | $ | 43,100 | $ | 46,537 | $ | 38,037 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Installment gross loans guaranteed by the Company | $ | 10,087 | $ | 7,967 | $ | 11,708 | $ | 12,120 | $ | 10,319 | Unsecured Installment gross loans guaranteed by the Company | $ | 4,019 | $ | 9,232 | $ | 12,477 | $ | 11,842 | $ | 10,087 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Past-due Unsecured Installment gross loans receivable -- percentage (2) | 23.1 | % | 25.2 | % | 25.8 | % | 26.8 | % | 22.5 | % | Past-due Unsecured Installment gross loans receivable -- percentage (2) | 21.8 | % | 28.4 | % | 26.8 | % | 26.7 | % | 23.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Past-due Unsecured Installment gross loans guaranteed by the Company -- percentage (2) | 15.5 | % | 13.3 | % | 15.1 | % | 16.0 | % | 15.6 | % | Past-due Unsecured Installment gross loans guaranteed by the Company -- percentage (2) | 12.1 | % | 17.1 | % | 16.8 | % | 16.7 | % | 15.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Installment other information: | Unsecured Installment other information: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Originations - Company Owned | $ | 102,792 | $ | 78,515 | $ | 114,182 | $ | 121,415 | $ | 114,038 | Originations - Company Owned | $ | 24,444 | $ | 55,941 | $ | 87,080 | $ | 107,275 | $ | 102,792 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Originations - Guaranteed by the Company (1) | $ | 80,445 | $ | 68,899 | $ | 89,319 | $ | 91,828 | $ | 84,082 | Originations - Guaranteed by the Company (1) | $ | 33,700 | $ | 64,836 | $ | 91,004 | $ | 89,644 | $ | 80,445 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Installment ratios: | Unsecured Installment ratios: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision as a percentage of gross loans receivable - Company Owned | 20.3 | % | 20.9 | % | 20.8 | % | 17.8 | % | 14.5 | % | Provision as a percentage of gross loans receivable - Company Owned | 15.8 | % | 21.3 | % | 20.6 | % | 18.3 | % | 20.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision as a percentage of gross loans receivable - Guaranteed by the Company | 43.6 | % | 45.9 | % | 48.2 | % | 52.2 | % | 40.7 | % | Provision as a percentage of gross loans receivable - Guaranteed by the Company | 34.5 | % | 48.7 | % | 46.9 | % | 51.9 | % | 43.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Includes loans originated by third-party lenders through CSO programs, which are not included in the Condensed Consolidated Financial Statements. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Non-GAAP measure - Refer to "Non-GAAP Financial Measures" for further details. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(3) Allowance for loan losses is reported as a contra-asset reducing gross loans receivable while the CSO liability for losses is reported as a liability on the Condensed Consolidated Balance Sheets. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Includes loans originated by third-party lenders through CSO programs, which are not included in our unaudited Condensed Consolidated Financial Statements. | (1) Includes loans originated by third-party lenders through CSO programs, which are not included in our unaudited Condensed Consolidated Financial Statements. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Non-GAAP measure. For a description of each non-GAAP metric, see "Non-GAAP Financial Measures." | (2) Non-GAAP measure. For a description of each non-GAAP metric, see "Non-GAAP Financial Measures." | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(3) We calculate Average gross loans receivable, which we utilize to calculate product yield and NCO rates, as average of beginning of quarter and end of quarter gross loans receivable. | (3) We calculate Average gross loans receivable, which we utilize to calculate product yield and NCO rates, as average of beginning of quarter and end of quarter gross loans receivable. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(4) We report Allowance for loan losses as a contra-asset reducing gross loans receivable and the CSO liability for losses as a liability on our unaudited Condensed Consolidated Balance Sheets. | (4) We report Allowance for loan losses as a contra-asset reducing gross loans receivable and the CSO liability for losses as a liability on our unaudited Condensed Consolidated Balance Sheets. |
2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands, unaudited) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Installment loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 19,401 | $ | 26,286 | $ | 28,690 | $ | 28,270 | $ | 26,076 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for losses | 7,238 | 9,682 | 11,492 | 8,819 | 7,821 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenue | $ | 12,163 | $ | 16,604 | $ | 17,198 | $ | 19,451 | $ | 18,255 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net charge-offs | $ | 9,092 | $ | 10,284 | $ | 11,548 | $ | 8,455 | $ | 7,630 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Installment gross combined loan balances: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Installment gross combined loans receivable (1)(2) | $ | 54,635 | $ | 74,405 | $ | 90,411 | $ | 92,478 | $ | 87,718 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Secured Installment gross combined loans receivable (3) | $ | 64,520 | $ | 82,408 | $ | 91,445 | $ | 90,098 | $ | 85,403 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Installment Allowance for loan losses and CSO liability for losses (4) | $ | 7,919 | $ | 9,773 | $ | 10,375 | $ | 10,431 | $ | 10,067 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Installment Allowance for loan losses and CSO liability for losses as a percentage of Secured Installment gross combined loans receivable | 14.5 | % | 13.1 | % | 11.5 | % | 11.3 | % | 11.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Installment past-due balances: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Installment past-due gross loans receivable and gross loans guaranteed by the Company | $ | 9,072 | $ | 15,612 | $ | 17,902 | $ | 17,645 | $ | 14,570 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Past-due Secured Installment gross loans receivable and gross loans guaranteed by the Company -- percentage (1)(2) | 16.6 | % | 21.0 | % | 19.8 | % | 19.1 | % | 16.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Installment other information: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Originations (2) | $ | 11,242 | $ | 20,990 | $ | 40,961 | $ | 45,990 | $ | 49,051 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Installment ratios: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision as a percentage of gross combined loans receivable | 13.2 | % | 13.0 | % | 12.7 | % | 9.5 | % | 8.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Non-GAAP measure. For a description of each non-GAAP metric, see "Non-GAAP Financial Measures." | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Includes loans originated by third-party lenders through CSO programs, which are not included in our unaudited Condensed Consolidated Financial Statements. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(3) We calculate Average gross loans receivable, which we utilize to calculate product yield and NCO rates, as beginning of quarter and end of quarter gross loans receivable. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(4) We report Allowance for loan losses as a contra-asset reducing gross loans receivable and the CSO liability for losses as a liability on our unaudited Condensed Consolidated Balance Sheets. |
2019 | 2018 | |||||||||||||||
(dollars in thousands, unaudited) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | |||||||||||
Secured Installment loans: | ||||||||||||||||
Revenue | $ | 26,076 | $ | 27,477 | $ | 29,482 | $ | 28,562 | $ | 25,777 | ||||||
Provision for losses | 7,821 | 7,080 | 12,035 | 10,188 | 7,650 | |||||||||||
Net revenue | $ | 18,255 | $ | 20,397 | $ | 17,447 | $ | 18,374 | $ | 18,127 | ||||||
Net charge-offs | $ | 7,630 | $ | 9,822 | $ | 11,132 | $ | 9,285 | $ | 9,003 | ||||||
Secured Installment gross combined loan balances: | ||||||||||||||||
Secured Installment gross combined loans receivable (1)(2) | $ | 87,718 | $ | 83,087 | $ | 95,922 | $ | 94,194 | $ | 87,434 | ||||||
Average Secured Installment gross combined loans receivable | $ | 85,403 | $ | 89,505 | $ | 95,058 | $ | 90,814 | $ | 84,984 | ||||||
Secured Installment Allowance for loan losses and CSO liability for losses (2) | $ | 10,067 | $ | 9,874 | $ | 12,616 | $ | 11,714 | $ | 10,812 | ||||||
Secured Installment Allowance for loan losses and CSO liability for losses as a percentage of Secured Installment gross combined loans receivable | 11.5 | % | 11.9 | % | 13.2 | % | 12.4 | % | 12.4 | % | ||||||
Secured Installment past-due balances: | ||||||||||||||||
Secured Installment past-due gross loans receivable and gross loans guaranteed by the Company | $ | 14,570 | $ | 13,866 | $ | 17,835 | $ | 17,754 | $ | 15,246 | ||||||
Past-due Secured Installment gross loans receivable and gross loans guaranteed by the Company -- percentage (1) | 16.6 | % | 16.7 | % | 18.6 | % | 18.8 | % | 17.4 | % | ||||||
Secured Installment other information: | ||||||||||||||||
Originations (3) | $ | 49,051 | $ | 33,490 | $ | 49,217 | $ | 51,742 | $ | 53,597 | ||||||
Secured Installment ratios: | ||||||||||||||||
Provision as a percentage of gross combined loans receivable | 8.9 | % | 8.5 | % | 12.5 | % | 10.8 | % | 8.7 | % | ||||||
(1) Non-GAAP measure - Refer to "Non-GAAP Financial Measures" for further details. | ||||||||||||||||
(2) Allowance for loan losses is reported as a contra-asset reducing gross loans receivable while the CSO liability for losses is reported as a liability on the Condensed Consolidated Balance Sheets. | ||||||||||||||||
(3) Includes loans originated by third-party lenders through CSO programs, which are not included in the Condensed Consolidated Financial Statements. |
2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands, unaudited) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Open-End loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 56,736 | $ | 70,982 | $ | 71,295 | $ | 66,120 | $ | 54,972 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for losses | 21,341 | 40,991 | 37,816 | 31,220 | 29,373 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenue | $ | 35,395 | $ | 29,991 | $ | 33,479 | $ | 34,900 | $ | 25,599 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net charge-offs (1) | $ | 31,684 | $ | 37,098 | $ | 37,426 | $ | 28,202 | $ | 25,151 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Open-End gross loan balances: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Open-End gross loans receivable | $ | 285,156 | $ | 314,006 | $ | 335,524 | $ | 314,971 | $ | 283,311 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Open-End gross loans receivable (1) | $ | 299,581 | $ | 324,765 | $ | 325,248 | $ | 299,141 | $ | 262,051 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Open-End allowance for loan losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | $ | 47,319 | $ | 56,458 | $ | 55,074 | $ | 54,233 | $ | 51,717 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Open-End Allowance for loan losses as a percentage of Open-End gross loans receivable | 16.6 | % | 18.0 | % | 16.4 | % | 17.2 | % | 18.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Open-End past-due balances: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Open-End past-due gross loans receivable | $ | 31,208 | $ | 49,987 | $ | 50,072 | $ | 46,053 | $ | 35,395 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Past-due Open-End gross loans receivable - percentage | 10.9 | % | 15.9 | % | 14.9 | % | 14.6 | % | 12.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) We calculate Average gross loans receivable, which we utilize to calculate product yield and NCO rates, as average of beginning of quarter and end of quarter gross loans receivable. |
2019 | 2018 | |||||||||||||||
(dollars in thousands, unaudited) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | |||||||||||
Open-End loans: | ||||||||||||||||
Revenue | $ | 54,972 | $ | 52,869 | $ | 47,228 | $ | 40,290 | $ | 27,222 | ||||||
Provision for losses | 29,373 | 25,317 | 28,337 | 31,686 | 14,848 | |||||||||||
Net revenue | $ | 25,599 | $ | 27,552 | $ | 18,891 | $ | 8,604 | $ | 12,374 | ||||||
Net charge-offs (1) | $ | 25,151 | $ | (1,521 | ) | $ | 25,218 | $ | 23,579 | $ | 11,924 | |||||
Open-End gross loan balances: | ||||||||||||||||
Open-End gross loans receivable | $ | 283,311 | $ | 240,790 | $ | 207,333 | $ | 184,067 | $ | 91,033 | ||||||
Average Open-End gross loans receivable | $ | 262,051 | $ | 224,062 | $ | 195,700 | $ | 137,550 | $ | 71,299 | ||||||
Open-End allowance for loan losses: | ||||||||||||||||
Allowance for loan losses | $ | 51,717 | $ | 46,963 | $ | 19,901 | $ | 18,013 | $ | 9,717 | ||||||
Open-End Allowance for loan losses as a percentage of Open-End gross loans receivable | 18.3 | % | 19.5 | % | 9.6 | % | 9.8 | % | 10.7 | % | ||||||
Open-End past-due balances: | ||||||||||||||||
Open-End past-due gross loans receivable | $ | 35,395 | $ | 32,444 | $ | — | $ | — | $ | — | ||||||
Past-due Open-End gross loans receivable - percentage | 12.5 | % | 13.5 | % | — | % | — | % | — | % | ||||||
(1) Excluding the impact of the Q1 2019 Open-End Loss Recognition Change, NCOs for the first quarter 2019 were $31,788. |
Pro Forma | 2019 | |||||||||||||||||||||||||||||||
(dollars in thousands, unaudited) | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||||||||||||||||||||
Open-End loans: | ||||||||||||||||||||||||||||||||
Pro Forma Net charge-offs | $ | 38,748 | $ | 29,762 | $ | 29,648 | $ | 31,788 | ||||||||||||||||||||||||
Open-End gross loan balances: | ||||||||||||||||||||||||||||||||
Open-End gross loans receivable | $ | 335,524 | $ | 314,971 | $ | 283,311 | $ | 240,790 | ||||||||||||||||||||||||
Pro Forma Average Open-End gross loans receivable (1) | $ | 325,248 | $ | 299,141 | $ | 262,051 | $ | 245,096 | ||||||||||||||||||||||||
Pro Forma Net-charge offs as a percentage of average gross loans receivable | 11.9 | % | 9.9 | % | 11.3 | % | 13.0 | % | ||||||||||||||||||||||||
(1) We calculate Average gross loans receivable, which we utilize to calculate product yield and NCO rates, as average of beginning of quarter and end of quarter gross loans receivable. | ||||||||||||||||||||||||||||||||
Pro Forma | 2019 | 2019 | |||||
(dollars in thousands, unaudited) | Second Quarter | First Quarter | |||||
Open-End loans: | |||||||
Revenue | $ | 54,972 | $ | 52,869 | |||
Provision for losses | 29,373 | 25,317 | |||||
Net revenue | $ | 25,599 | $ | 27,552 | |||
Net charge-offs | $ | 29,648 | $ | 31,788 | |||
Open-End gross loan balances: | |||||||
Open-End gross loans receivable | $ | 283,311 | $ | 240,790 | |||
Average Open-End gross loans receivable | $ | 262,051 | $ | 245,096 | |||
Net-charge offs as a percentage of average gross loans receivable | 11.3 | % | 13.0 | % | |||
Open-End allowance for loan losses: | |||||||
Allowance for loan losses | $ | 51,717 | $ | 46,963 | |||
Open-End Allowance for loan losses as a percentage of Open-End gross loans receivable | 18.3 | % | 19.5 | % | |||
Open-End past-due balances: | |||||||
Open-End past-due gross loans receivable | $ | 35,395 | $ | 32,444 | |||
Past-due Open-End gross loans receivable - percentage | 12.5 | % | 13.5 | % |
2019 | 2018 | |||||||||||||||
(dollars in thousands, unaudited) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | |||||||||||
Single-pay loans: | ||||||||||||||||
Revenue | $ | 45,528 | $ | 46,761 | $ | 49,696 | $ | 50,614 | $ | 58,325 | ||||||
Provision for losses | 12,446 | 8,268 | 12,825 | 12,757 | 13,101 | |||||||||||
Net revenue | $ | 33,082 | $ | 38,493 | $ | 36,871 | $ | 37,857 | $ | 45,224 | ||||||
Net charge-offs | $ | 11,458 | $ | 8,610 | $ | 11,838 | $ | 12,892 | $ | 12,976 | ||||||
Single-Pay gross loan balances: | ||||||||||||||||
Single-Pay gross loans receivable | $ | 76,126 | $ | 69,753 | $ | 80,823 | $ | 77,390 | $ | 84,665 | ||||||
Average Single-Pay gross loans receivable | $ | 72,940 | $ | 75,288 | $ | 79,107 | $ | 81,028 | $ | 83,353 | ||||||
Single-Pay Allowance for loan losses | $ | 4,941 | $ | 3,897 | $ | 4,189 | $ | 3,293 | $ | 3,604 | ||||||
Single-Pay Allowance for loan losses as a percentage of Single-Pay gross loans receivable | 6.5 | % | 5.6 | % | 5.2 | % | 4.3 | % | 4.3 | % |
As of | |||||||||||||||
(in millions, unaudited) | June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | ||||||||||
Company Owned gross loans receivable | $ | 609.6 | $ | 553.2 | $ | 571.5 | $ | 537.8 | $ | 420.6 | |||||
Gross loans receivable Guaranteed by the Company | 67.3 | 61.9 | 80.4 | 78.8 | 69.2 | ||||||||||
Gross combined loans receivable (1) | $ | 676.9 | $ | 615.1 | $ | 651.9 | $ | 616.6 | $ | 489.8 | |||||
(1) See "Non-GAAP Financial Measures" below for definition and additional information. |
2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands, unaudited) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Single-pay loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 22,732 | $ | 45,157 | $ | 49,844 | $ | 49,312 | $ | 45,528 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for losses | (2,588) | 9,639 | 12,289 | 14,736 | 12,446 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenue | $ | 25,320 | $ | 35,518 | $ | 37,555 | $ | 34,576 | $ | 33,082 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net charge-offs | $ | (598) | $ | 10,517 | $ | 12,145 | $ | 13,913 | $ | 11,458 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Single-Pay gross loan balances: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Single-Pay gross loans receivable | $ | 36,130 | $ | 54,728 | $ | 81,447 | $ | 78,039 | $ | 76,126 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Single-Pay gross loans receivable (1) | $ | 45,429 | $ | 68,088 | $ | 78,787 | $ | 77,083 | $ | 72,940 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Single-Pay Allowance for loan losses | $ | 2,802 | $ | 4,693 | $ | 5,869 | $ | 5,662 | $ | 4,941 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Single-Pay Allowance for loan losses as a percentage of Single-Pay gross loans receivable | 7.8 | % | 8.6 | % | 7.2 | % | 7.3 | % | 6.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) We calculate Average gross loans receivable, which we utilize to calculate product yield and NCO rates, as average of beginning of quarter and end of quarter gross loans receivable. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2020 | Six Months Ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands, unaudited) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | Change $ | Change % | 2019 | 2018 | Change $ | Change % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Change $ | Change % | 2020 | 2019 | Change $ | Change % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 264,300 | $ | 237,169 | $ | 27,131 | 11.4 | % | $ | 542,239 | $ | 488,012 | $ | 54,227 | 11.1 | % | $ | 182,509 | $ | 264,300 | $ | (81,791) | (30.9) | % | $ | 463,315 | $ | 542,239 | $ | (78,924) | (14.6) | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Provision for losses | 112,010 | 86,347 | 25,663 | 29.7 | % | 214,395 | 163,230 | 51,165 | 31.3 | % | Provision for losses | 50,693 | 112,010 | (61,317) | (54.7) | % | 164,229 | 214,395 | (50,166) | (23.4) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenue | 152,290 | 150,822 | 1,468 | 1.0 | % | 327,844 | 324,782 | 3,062 | 0.9 | % | Net revenue | 131,816 | 152,290 | (20,474) | (13.4) | % | 299,086 | 327,844 | (28,758) | (8.8) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Advertising costs | 12,780 | 15,113 | (2,333 | ) | (15.4 | )% | 20,566 | 22,998 | (2,432 | ) | (10.6 | )% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Advertising | Advertising | 5,750 | 12,780 | (7,030) | (55.0) | % | 17,969 | 20,566 | (2,597) | (12.6) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-advertising costs of providing services | 58,329 | 58,361 | (32 | ) | (0.1 | )% | 120,600 | 118,590 | 2,010 | 1.7 | % | Non-advertising costs of providing services | 49,567 | 58,329 | (8,762) | (15.0) | % | 104,919 | 120,600 | (15,681) | (13.0) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total cost of providing services | 71,109 | 73,474 | (2,365 | ) | (3.2 | )% | 141,166 | 141,588 | (422 | ) | (0.3 | )% | Total cost of providing services | 55,317 | 71,109 | (15,792) | (22.2) | % | 122,888 | 141,166 | (18,278) | (12.9) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross margin | 81,181 | 77,348 | 3,833 | 5.0 | % | 186,678 | 183,194 | 3,484 | 1.9 | % | Gross margin | 76,499 | 81,181 | (4,682) | (5.8) | % | 176,198 | 186,678 | (10,480) | (5.6) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expense | Operating expense | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate, district and other expenses | 39,038 | 32,980 | 6,058 | 18.4 | % | 88,126 | 68,409 | 19,717 | 28.8 | % | Corporate, district and other expenses | 36,781 | 35,290 | 1,491 | 4.2 | % | 79,588 | 84,378 | (4,790) | (5.7) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 17,023 | 20,472 | (3,449 | ) | (16.8 | )% | 34,713 | 42,826 | (8,113 | ) | (18.9 | )% | Interest expense | 18,311 | 17,023 | 1,288 | 7.6 | % | 35,635 | 34,713 | 922 | 2.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | — | — | — | # | — | 11,683 | (11,683 | ) | # | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Gain) loss from equity method investment | (Gain) loss from equity method investment | (741) | 3,748 | (4,489) | # | 877 | 3,748 | (2,871) | (76.6) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total operating expense | 56,061 | 53,452 | 2,609 | 4.9 | % | 122,839 | 122,918 | (79 | ) | (0.1 | )% | Total operating expense | 54,351 | 56,061 | (1,710) | (3.1) | % | 116,100 | 122,839 | (6,739) | (5.5) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income from continuing operations before income taxes | 25,120 | 23,896 | 1,224 | 5.1 | % | 63,839 | 60,276 | 3,563 | 5.9 | % | Income from continuing operations before income taxes | 22,148 | 25,120 | (2,972) | (11.8) | % | 60,098 | 63,839 | (3,741) | (5.9) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | 7,453 | 5,178 | 2,275 | 43.9 | % | 17,499 | 16,645 | 854 | 5.1 | % | Provision for income taxes | 1,068 | 7,453 | (6,385) | (85.7) | % | 3,005 | 17,499 | (14,494) | (82.8) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income from continuing operations | 17,667 | 18,718 | (1,051 | ) | (5.6 | )% | 46,340 | 43,631 | 2,709 | 6.2 | % | Net income from continuing operations | 21,080 | 17,667 | 3,413 | 19.3 | % | 57,093 | 46,340 | 10,753 | 23.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) from discontinued operations, net of tax | (834 | ) | (2,743 | ) | 1,909 | (69.6 | )% | 7,541 | (4,364 | ) | 11,905 | # | Net income (loss) from discontinued operations, net of tax | 993 | (834) | 1,827 | # | 1,285 | 7,541 | (6,256) | (83.0) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 16,833 | $ | 15,975 | $ | 858 | 5.4 | % | $ | 53,881 | $ | 39,267 | $ | 14,614 | 37.2 | % | Net income | $ | 22,073 | $ | 16,833 | $ | 5,240 | 31.1 | % | $ | 58,378 | $ | 53,881 | $ | 4,497 | 8.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||
# - Variance greater than 100% or not meaningful | # - Variance greater than 100% or not meaningful |
U.S. Segment Results | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Change $ | Change % | 2020 | 2019 | Change $ | Change % | |||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 137,320 | $ | 210,046 | $ | (72,726) | (34.6) | % | $ | 359,088 | $ | 436,165 | $ | (77,077) | (17.7) | % | ||||||||||||||||||||||||||||||||||||||||
Provision for losses | 41,530 | 92,552 | (51,022) | (55.1) | % | 127,571 | 177,532 | (49,961) | (28.1) | % | ||||||||||||||||||||||||||||||||||||||||||||||
Net revenue | 95,790 | 117,494 | (21,704) | (18.5) | % | 231,517 | 258,633 | (27,116) | (10.5) | % | ||||||||||||||||||||||||||||||||||||||||||||||
Advertising | 5,269 | 11,179 | (5,910) | (52.9) | % | 16,214 | 17,533 | (1,319) | (7.5) | % | ||||||||||||||||||||||||||||||||||||||||||||||
Non-advertising costs of providing services | 33,661 | 41,248 | (7,587) | (18.4) | % | 70,903 | 86,230 | (15,327) | (17.8) | % | ||||||||||||||||||||||||||||||||||||||||||||||
Total cost of providing services | 38,930 | 52,427 | (13,497) | (25.7) | % | 87,117 | 103,763 | (16,646) | (16.0) | % | ||||||||||||||||||||||||||||||||||||||||||||||
Gross margin | 56,860 | 65,067 | (8,207) | (12.6) | % | 144,400 | 154,870 | (10,470) | (6.8) | % | ||||||||||||||||||||||||||||||||||||||||||||||
Corporate, district and other expenses | 29,631 | 29,649 | (18) | (0.1) | % | 67,281 | 73,529 | (6,248) | (8.5) | % | ||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 16,113 | 14,641 | 1,472 | 10.1 | % | 30,959 | 29,369 | 1,590 | 5.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||
(Gain) loss from equity method investment | (741) | 3,748 | (4,489) | # | 877 | 3,748 | (2,871) | (76.6) | ||||||||||||||||||||||||||||||||||||||||||||||||
Total operating expense | 45,003 | 48,038 | (3,035) | (6.3) | % | 99,117 | 106,646 | (7,529) | (7.1) | % | ||||||||||||||||||||||||||||||||||||||||||||||
Segment operating income | 11,857 | 17,029 | (5,172) | (30.4) | % | 45,283 | 48,224 | (2,941) | (6.1) | |||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 16,113 | 14,641 | 1,472 | 10.1 | % | 30,959 | 29,369 | 1,590 | 5.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 3,309 | 3,437 | (128) | (3.7) | % | 6,686 | 7,163 | (477) | (6.7) | % | ||||||||||||||||||||||||||||||||||||||||||||||
EBITDA(1) | 31,279 | 35,107 | (3,828) | (10.9) | % | 82,928 | 84,756 | (1,828) | (2.2) | |||||||||||||||||||||||||||||||||||||||||||||||
Legal and other costs | 938 | — | 938 | 2,087 | 1,617 | 470 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other adjustments | 305 | (143) | 448 | 164 | (248) | 412 | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.K. related costs | — | 679 | (679) | — | 8,496 | (8,496) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | 3,310 | 2,644 | 666 | 6,504 | 4,816 | 1,688 | ||||||||||||||||||||||||||||||||||||||||||||||||||
(Gain) loss from equity method investment | (741) | 3,748 | (4,489) | 877 | 3,748 | (2,871) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA(1) | $ | 35,091 | $ | 42,035 | $ | (6,944) | (16.5) | % | $ | 92,560 | $ | 103,185 | $ | (10,625) | (10.3) | % | ||||||||||||||||||||||||||||||||||||||||
(1) These are non-GAAP metrics. For a description and reconciliation of each Non-GAAP metric, see "Supplemental Non-GAAP Financial Information." | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
# - Variance greater than 100% or not meaningful. |
U.S. Segment Results | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
(dollars in thousands, unaudited) | 2019 | 2018 | Change $ | Change % | 2019 | 2018 | Change $ | Change % | |||||||||||||||
Revenue | $ | 210,046 | $ | 190,126 | $ | 19,920 | 10.5 | % | $ | 436,165 | $ | 394,719 | $ | 41,446 | 10.5 | % | |||||||
Provision for losses | 92,552 | 71,987 | 20,565 | 28.6 | % | 177,532 | 136,320 | 41,212 | 30.2 | % | |||||||||||||
Net revenue | 117,494 | 118,139 | (645 | ) | (0.5 | )% | 258,633 | 258,399 | 234 | 0.1 | % | ||||||||||||
Advertising costs | 11,179 | 12,409 | (1,230 | ) | (9.9 | )% | 17,533 | 17,568 | (35 | ) | (0.2 | )% | |||||||||||
Non-advertising costs of providing services | 41,248 | 41,682 | (434 | ) | (1.0 | )% | 86,230 | 85,439 | 791 | 0.9 | % | ||||||||||||
Total cost of providing services | 52,427 | 54,091 | (1,664 | ) | (3.1 | )% | 103,763 | 103,007 | 756 | 0.7 | % | ||||||||||||
Gross margin | 65,067 | 64,048 | 1,019 | 1.6 | % | 154,870 | 155,392 | (522 | ) | (0.3 | )% | ||||||||||||
Corporate, district and other expenses | 33,397 | 28,221 | 5,176 | 18.3 | % | 77,277 | 58,753 | 18,524 | 31.5 | % | |||||||||||||
Interest expense | 14,641 | 20,465 | (5,824 | ) | (28.5 | )% | 29,369 | 42,762 | (13,393 | ) | (31.3 | )% | |||||||||||
Loss on extinguishment of debt | — | — | — | # | — | 11,683 | (11,683 | ) | # | ||||||||||||||
Total operating expense | 48,038 | 48,686 | (648 | ) | (1.3 | )% | 106,646 | 113,198 | (6,552 | ) | (5.8 | )% | |||||||||||
Segment operating income | 17,029 | 15,362 | 1,667 | 10.9 | % | 48,224 | 42,194 | 6,030 | 14.3 | % | |||||||||||||
Interest expense | 14,641 | 20,465 | (5,824 | ) | (28.5 | )% | 29,369 | 42,762 | (13,393 | ) | (31.3 | )% | |||||||||||
Depreciation and amortization | 3,437 | 3,379 | 58 | 1.7 | % | 7,163 | 6,786 | 377 | 5.6 | % | |||||||||||||
EBITDA | 35,107 | 39,206 | (4,099 | ) | (10.5 | )% | 84,756 | 91,742 | (6,986 | ) | (7.6 | )% | |||||||||||
Loss on extinguishment of debt | — | — | — | — | 11,683 | (11,683 | ) | ||||||||||||||||
Restructuring costs | — | — | — | 1,617 | — | 1,617 | |||||||||||||||||
Other adjustments | (143 | ) | (66 | ) | (77 | ) | (248 | ) | (125 | ) | (123 | ) | |||||||||||
U.K. related costs | 679 | — | 679 | 8,496 | — | 8,496 | |||||||||||||||||
Share-based cash and non-cash compensation | 2,644 | 2,181 | 463 | 4,816 | 4,023 | 793 | |||||||||||||||||
Impairment of equity method | 3,748 | — | 3,748 | 3,748 | 3,748 | ||||||||||||||||||
Adjusted EBITDA | $ | 42,035 | $ | 41,321 | $ | 714 | 1.7 | % | $ | 103,185 | $ | 107,323 | $ | (4,138 | ) | (3.9 | )% | ||||||
# - Change greater than 100% or not meaningful. |
Canada Segment Results | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Change $ | Change % | 2020 | 2019 | Change $ | Change % | |||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 45,189 | $ | 54,254 | $ | (9,065) | (16.7) | % | $ | 104,227 | $ | 106,074 | $ | (1,847) | (1.7) | % | ||||||||||||||||||||||||||||||||||||||||
Provision for losses | 9,163 | 19,458 | (10,295) | (52.9) | % | 36,658 | 36,863 | (205) | (0.6) | % | ||||||||||||||||||||||||||||||||||||||||||||||
Net revenue | 36,026 | 34,796 | 1,230 | 3.5 | % | 67,569 | 69,211 | (1,642) | (2.4) | % | ||||||||||||||||||||||||||||||||||||||||||||||
Advertising | 481 | 1,601 | (1,120) | (70.0) | % | 1,755 | 3,033 | (1,278) | (42.1) | % | ||||||||||||||||||||||||||||||||||||||||||||||
Non-advertising costs of providing services | 15,906 | 17,081 | (1,175) | (6.9) | % | 34,016 | 34,370 | (354) | (1.0) | % | ||||||||||||||||||||||||||||||||||||||||||||||
Total cost of providing services | 16,387 | 18,682 | (2,295) | (12.3) | % | 35,771 | 37,403 | (1,632) | (4.4) | % | ||||||||||||||||||||||||||||||||||||||||||||||
Gross margin | 19,639 | 16,114 | 3,525 | 21.9 | % | 31,798 | 31,808 | (10) | — | % | ||||||||||||||||||||||||||||||||||||||||||||||
Corporate, district and other expenses | 7,150 | 5,641 | 1,509 | 26.8 | % | 12,307 | 10,849 | 1,458 | 13.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 2,198 | 2,382 | (184) | (7.7) | % | 4,676 | 5,344 | (668) | (12.5) | % | ||||||||||||||||||||||||||||||||||||||||||||||
Total operating expense | 9,348 | 8,023 | 1,325 | 16.5 | % | 16,983 | 16,193 | 790 | 4.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Segment operating income | 10,291 | 8,091 | 2,200 | 27.2 | % | 14,815 | 15,615 | (800) | (5.1) | % | ||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 2,198 | 2,382 | (184) | (7.7) | % | 4,676 | 5,344 | (668) | (12.5) | % | ||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 1,108 | 1,214 | (106) | (8.7) | % | 2,268 | 2,408 | (140) | (5.8) | % | ||||||||||||||||||||||||||||||||||||||||||||||
EBITDA(1) | 13,597 | 11,687 | 1,910 | 16.3 | % | 21,759 | 23,367 | (1,608) | (6.9) | % | ||||||||||||||||||||||||||||||||||||||||||||||
Legal and other costs | — | — | — | — | 135 | (135) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Canada GST adjustment | 2,160 | — | 2,160 | 2,160 | — | 2,160 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other adjustments | 281 | (33) | 314 | 437 | (144) | 581 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA(1) | $ | 16,038 | $ | 11,654 | $ | 4,384 | 37.6 | % | $ | 24,356 | $ | 23,358 | $ | 998 | 4.3 | % | ||||||||||||||||||||||||||||||||||||||||
(1) These are non-GAAP metrics. For a description and reconciliation of each Non-GAAP metric, see "Supplemental Non-GAAP Financial Information." | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Canada Segment Results | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
(dollars in thousands, unaudited) | 2019 | 2018 | Change $ | Change % | 2019 | 2018 | Change $ | Change % | |||||||||||||||
Revenue | $ | 54,254 | $ | 47,043 | $ | 7,211 | 15.3 | % | $ | 106,074 | $ | 93,293 | $ | 12,781 | 13.7 | % | |||||||
Provision for losses | 19,458 | 14,360 | 5,098 | 35.5 | % | 36,863 | 26,910 | 9,953 | 37.0 | % | |||||||||||||
Net revenue | 34,796 | 32,683 | 2,113 | 6.5 | % | 69,211 | 66,383 | 2,828 | 4.3 | % | |||||||||||||
Advertising costs | 1,601 | 2,704 | (1,103 | ) | (40.8 | )% | 3,033 | 5,430 | (2,397 | ) | (44.1 | )% | |||||||||||
Non-advertising costs of providing services | 17,081 | 16,679 | 402 | 2.4 | % | 34,370 | 33,151 | 1,219 | 3.7 | % | |||||||||||||
Total cost of providing services | 18,682 | 19,383 | (701 | ) | (3.6 | )% | 37,403 | 38,581 | (1,178 | ) | (3.1 | )% | |||||||||||
Gross margin | 16,114 | 13,300 | 2,814 | 21.2 | % | 31,808 | 27,802 | 4,006 | 14.4 | % | |||||||||||||
Corporate, district and other expenses | 5,641 | 4,759 | 882 | 18.5 | % | 10,849 | 9,656 | 1,193 | 12.4 | % | |||||||||||||
Interest expense | 2,382 | 7 | 2,375 | # | 5,344 | 64 | 5,280 | # | |||||||||||||||
Total operating expense | 8,023 | 4,766 | 3,257 | 68.3 | % | 16,193 | 9,720 | 6,473 | 66.6 | % | |||||||||||||
Segment operating income | 8,091 | 8,534 | (443 | ) | (5.2 | )% | 15,615 | 18,082 | (2,467 | ) | (13.6 | )% | |||||||||||
Interest expense | 2,382 | 7 | 2,375 | # | 5,344 | 64 | 5,280 | # | |||||||||||||||
Depreciation and amortization | 1,214 | 1,091 | 123 | 11.3 | % | 2,408 | 2,219 | 189 | 8.5 | % | |||||||||||||
EBITDA | 11,687 | 9,632 | 2,055 | 21.3 | % | 23,367 | 20,365 | 3,002 | 14.7 | % | |||||||||||||
Restructuring costs | — | — | — | 135 | — | 135 | |||||||||||||||||
Other adjustments | (33 | ) | 157 | (190 | ) | (144 | ) | 173 | (317 | ) | |||||||||||||
Adjusted EBITDA | $ | 11,654 | $ | 9,789 | $ | 1,865 | 19.1 | % | $ | 23,358 | $ | 20,538 | $ | 2,820 | 13.7 | % | |||||||
# - Change greater than 100% or not meaningful. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Change $ | Change % | 2020 | 2019 | Change $ | Change % | ||||||||||||||||||||||||||||||||||||||||
Net income from continuing operations | $ | 21,080 | $ | 17,667 | $ | 3,413 | 19.3 | % | $ | 57,093 | $ | 46,340 | $ | 10,753 | 23.2 | ||||||||||||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||
Legal and related costs (1) | 938 | — | 2,087 | 1,752 | |||||||||||||||||||||||||||||||||||||||||||
U.K. related costs (2) | — | 679 | — | 8,496 | |||||||||||||||||||||||||||||||||||||||||||
(Gain) loss from equity method investment (3) | (741) | 3,748 | 877 | 3,748 | |||||||||||||||||||||||||||||||||||||||||||
Share-based compensation (4) | 3,310 | 2,644 | 6,504 | 4,816 | |||||||||||||||||||||||||||||||||||||||||||
Intangible asset amortization | 759 | 761 | 1,496 | 1,557 | |||||||||||||||||||||||||||||||||||||||||||
Canada GST adjustment (5) | 2,160 | — | 2,160 | — | |||||||||||||||||||||||||||||||||||||||||||
Income tax valuations (6) | (3,472) | — | (3,472) | — | |||||||||||||||||||||||||||||||||||||||||||
Impact of tax law changes (7) | — | — | (9,114) | — | |||||||||||||||||||||||||||||||||||||||||||
Cumulative tax effect of adjustments (8) | (1,864) | (1,062) | (3,185) | (4,322) | |||||||||||||||||||||||||||||||||||||||||||
Adjusted Net Income | $ | 22,170 | $ | 24,437 | $ | (2,267) | (9.3) | % | $ | 54,446 | $ | 62,387 | $ | (7,941) | (12.7) | % | |||||||||||||||||||||||||||||||
Net income from continuing operations | $ | 21,080 | $ | 17,667 | $ | 57,093 | $ | 46,340 | |||||||||||||||||||||||||||||||||||||||
Diluted Weighted Average Shares Outstanding | 41,545 | 47,107 | 41,686 | 47,335 | |||||||||||||||||||||||||||||||||||||||||||
Diluted Earnings per Share from continuing operations | $ | 0.51 | $ | 0.38 | $ | 0.13 | 34.2 | % | $ | 1.37 | $ | 0.98 | $ | 0.39 | 39.8 | ||||||||||||||||||||||||||||||||
Per Share impact of adjustments to Net income | 0.02 | 0.14 | (0.06) | 0.34 | |||||||||||||||||||||||||||||||||||||||||||
Adjusted Diluted Earnings per Share | $ | 0.53 | $ | 0.52 | $ | 0.01 | 1.9 | % | $ | 1.31 | $ | 1.32 | $ | (0.01) | (0.8) | % | |||||||||||||||||||||||||||||||
Note: Footnotes follow Reconciliation of Adjusted EBITDA table immediately below. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in thousands except per share data, unaudited) | 2019 | 2018 | Change $ | Change % | 2019 | 2018 | Change $ | Change % | |||||||||||||||
Net income from continuing operations | $ | 17,667 | $ | 18,718 | $ | (1,051 | ) | (5.6 | )% | $ | 46,340 | $ | 43,631 | $ | 2,709 | 6.2 | % | ||||||
Adjustments: | |||||||||||||||||||||||
Loss on extinguishment of debt (1) | — | — | — | 11,683 | |||||||||||||||||||
Restructuring costs (2) | — | — | 1,752 | — | |||||||||||||||||||
U.K. related costs (3) | 679 | — | 8,496 | — | |||||||||||||||||||
Impairment of equity method investment (4) | 3,748 | — | 3,748 | — | |||||||||||||||||||
Share-based cash and non-cash compensation (5) | 2,644 | 2,181 | 4,816 | 4,023 | |||||||||||||||||||
Intangible asset amortization | 761 | 640 | 1,557 | 1,303 | |||||||||||||||||||
Impact of tax law changes (6) | — | — | — | 1,800 | |||||||||||||||||||
Cumulative tax effect of adjustments | (1,062 | ) | (705 | ) | (4,322 | ) | (4,394 | ) | |||||||||||||||
Adjusted Net Income | $ | 24,437 | $ | 20,834 | $ | 3,603 | 17.3 | % | $ | 62,387 | $ | 58,046 | $ | 4,341 | 7.5 | % | |||||||
Net income from continuing operations | $ | 17,667 | $ | 18,718 | $ | 46,340 | $ | 43,631 | |||||||||||||||
Diluted Weighted Average Shares Outstanding | 47,107 | 47,996 | 47,335 | 47,757 | |||||||||||||||||||
Diluted Earnings per Share from continuing operations | $ | 0.38 | $ | 0.39 | $ | (0.01 | ) | (2.6 | )% | $ | 0.98 | $ | 0.92 | $ | 0.06 | 6.5 | % | ||||||
Per Share impact of adjustments to Net Income | 0.14 | 0.04 | 0.34 | 0.29 | |||||||||||||||||||
Adjusted Diluted Earnings per Share | $ | 0.52 | $ | 0.43 | $ | 0.09 | 20.9 | % | $ | 1.32 | $ | 1.21 | $ | 0.11 | 9.1 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Change $ | Change % | 2020 | 2019 | Change $ | Change % | ||||||||||||||||||||||||||||||||||||||||
Net income from continuing operations | $ | 21,080 | $ | 17,667 | $ | 3,413 | 19.3 | % | $ | 57,093 | $ | 46,340 | $ | 10,753 | 23.2 | ||||||||||||||||||||||||||||||||
Provision for income taxes | 1,068 | 7,453 | (6,385) | (85.7) | % | 3,005 | 17,499 | (14,494) | (82.8) | ||||||||||||||||||||||||||||||||||||||
Interest expense | 18,311 | 17,023 | 1,288 | 7.6 | % | 35,635 | 34,713 | 922 | 2.7 | ||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 4,417 | 4,651 | (234) | (5.0) | % | 8,954 | 9,571 | (617) | (6.4) | % | |||||||||||||||||||||||||||||||||||||
EBITDA | 44,876 | 46,794 | (1,918) | (4.1) | % | 104,687 | 108,123 | (3,436) | (3.2) | ||||||||||||||||||||||||||||||||||||||
Legal and related costs (1) | 938 | — | 2,087 | 1,752 | |||||||||||||||||||||||||||||||||||||||||||
U.K. related costs (2) | — | 679 | — | 8,496 | |||||||||||||||||||||||||||||||||||||||||||
(Gain) loss from equity method investment (3) | (741) | 3,748 | 877 | 3,748 | |||||||||||||||||||||||||||||||||||||||||||
Share-based compensation (4) | 3,310 | 2,644 | 6,504 | 4,816 | |||||||||||||||||||||||||||||||||||||||||||
Canada GST adjustment (5) | 2,160 | — | 2,160 | — | |||||||||||||||||||||||||||||||||||||||||||
Other adjustments (9) | 586 | (176) | 601 | (392) | |||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 51,129 | $ | 53,689 | $ | (2,560) | (4.8) | % | $ | 116,916 | $ | 126,543 | $ | (9,627) | (7.6) | % | |||||||||||||||||||||||||||||||
Adjusted EBITDA Margin | 28.0 | % | 20.3 | % | 25.2 | 23.3 | % | ||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in thousands, except per share data, unaudited) | 2019 | 2018 | Change $ | Change % | 2019 | 2018 | Change $ | Change % | |||||||||||||||
Net income from continuing operations | $ | 17,667 | $ | 18,718 | $ | (1,051 | ) | (5.6 | )% | $ | 46,340 | $ | 43,631 | $ | 2,709 | # | |||||||
Provision for income taxes | 7,453 | 5,178 | 2,275 | 43.9 | % | 17,499 | 16,645 | 854 | 5.1 | % | |||||||||||||
Interest expense | 17,023 | 20,472 | (3,449 | ) | (16.8 | )% | 34,713 | 42,826 | (8,113 | ) | (18.9 | )% | |||||||||||
Depreciation and amortization | 4,651 | 4,470 | 181 | 4.0 | % | 9,571 | 9,005 | 566 | 6.3 | % | |||||||||||||
EBITDA | 46,794 | 48,838 | (2,044 | ) | (4.2 | )% | 108,123 | 112,107 | (3,984 | ) | (3.6 | )% | |||||||||||
Loss on extinguishment of debt (1) | — | — | — | 11,683 | |||||||||||||||||||
Restructuring costs (2) | — | — | 1,752 | — | |||||||||||||||||||
U.K. related costs (3) | 679 | — | 8,496 | — | |||||||||||||||||||
Impairment of equity method investment (4) | 3,748 | — | 3,748 | — | |||||||||||||||||||
Share-based cash and non-cash compensation (5) | 2,644 | 2,181 | 4,816 | 4,023 | |||||||||||||||||||
Other adjustments (7) | (176 | ) | 91 | (392 | ) | 48 | |||||||||||||||||
Adjusted EBITDA | $ | 53,689 | $ | 51,110 | $ | 2,579 | 5.0 | % | $ | 126,543 | $ | 127,861 | $ | (1,318 | ) | (1.0 | )% | ||||||
Adjusted EBITDA Margin | 20.3 | % | 21.6 | % | 23.3 | % | 26.2 | % |
(1) | |||||
Legal and other costs of $1.8 million for the six months ended June 30, 2019 were due to eliminating 121 positions in North America. The store employee reductions | |||||
(2) | U.K. related costs of $8.5 million for the six months ended June 30, 2019 relate to placing the U.K. subsidiaries into administration on February 25, 2019, which included $7.6 million to obtain consent from the holders of the 8.25% Senior Secured Notes to deconsolidate the U.K. Segment and $0.9 million for other costs. | ||||
(3) | The Loss from equity method investment for the six months ended June 30, 2020 of $0.9 million includes our share of the estimated GAAP net loss of Katapult. As of June 30, 2020, we owned 42.5% of the outstanding shares of Katapult. The Loss from equity method investment for the six months ended June 30, 2019 of $3.7 million represented the market value adjustment recognized during the second quarter of 2019 as a result of an equity raising round from April through July of 2019 | ||||
We approved the adoption of share-based compensation plans during 2010 and 2017 for key members of senior management. The estimated fair value of share-based awards is recognized as non-cash compensation expense on a straight-line basis over the vesting period. | |||||
(5) | We received a | ||||
(6) | In the second quarter of 2020, a Texas court ruling related to the apportionment of income to the state for another company resulted in a change in estimate regarding the realization of a tax benefit previously taken. Accordingly, we recorded a $1.1 million liability for our estimated exposure related to this position. Also in the second quarter of 2020, we released a $4.6 million valuation allowance related to NOLs for certain entities in Canada. | ||||
(7) | On March 27, 2020, the CARES Act was enacted by the U.S. Federal government 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 | ||||
Cumulative tax effect of adjustments included in Reconciliation of Net income from continuing operations to EBITDA and Adjusted EBITDA table is calculated using the estimated incremental tax rate by country. | |||||
(9) | Other adjustments primarily include |
Average Exchange Rates | |||||||||||||||||||||||
Three Months Ended June 30, | Change | ||||||||||||||||||||||
2020 | 2019 | $ | % | ||||||||||||||||||||
Canadian Dollar | $ | 0.7215 | $ | 0.7477 | ($0.0262) | (3.5) | % | ||||||||||||||||
Average Exchange Rates | ||||||||||||
Three Months Ended June 30, | Change | |||||||||||
2019 | 2018 | $ | % | |||||||||
Canadian Dollar | $ | 0.7477 | $ | 0.7749 | ($0.0272 | ) | (3.5 | )% |
Average Exchange Rates | ||||||||||||
Six Months Ended June 30, | Change | |||||||||||
2019 | 2018 | $ | % | |||||||||
Canadian Dollar | $ | 0.7501 | $ | 0.7831 | ($0.0330 | ) | (4.2 | )% |
Average Exchange Rates | |||||||||||||||||||||||
Six Months Ended June 30, | Change | ||||||||||||||||||||||
2020 | 2019 | $ | % | ||||||||||||||||||||
Canadian Dollar | $ | 0.7335 | $ | 0.7501 | ($0.0166) | (2.2) | % |
Exchange Rate as of | |||||||||||||||||||||||
June 30, | December 31, | Change | |||||||||||||||||||||
2020 | 2019 | $ | % | ||||||||||||||||||||
Canadian Dollar | $ | 0.7312 | $ | 0.7683 | ($0.0371) | (4.8) | % | ||||||||||||||||
Three Months Ended June 30, | Change | |||||||||||||||||||||||||||||||||||||
(in thousands, unaudited) | 2020 | 2019 | $ | % | ||||||||||||||||||||||||||||||||||
Canada – constant currency basis: | ||||||||||||||||||||||||||||||||||||||
Revenues | $ | 46,858 | $ | 54,254 | $ | (7,396) | (13.6) | % | ||||||||||||||||||||||||||||||
Gross Margin | $ | 20,406 | $ | 16,114 | $ | 4,292 | 26.6 | % | ||||||||||||||||||||||||||||||
Three Months Ended June 30, | Change | |||||||||||||||
(dollars in thousands, unaudited) | 2019 | 2018 | $ | % | ||||||||||||
Canada – constant currency basis: | ||||||||||||||||
Revenues | $ | 56,224 | $ | 47,043 | $ | 9,181 | 19.5 | % | ||||||||
Gross Margin | 16,691 | 13,300 | 3,391 | 25.5 | % |
Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||||||||||
(in thousands, unaudited) | 2020 | 2019 | $ | % | ||||||||||||||||||||||||||||||||||
Canada – constant currency basis: | ||||||||||||||||||||||||||||||||||||||
Revenues | $ | 106,382 | $ | 106,074 | $ | 308 | 0.3 | % | ||||||||||||||||||||||||||||||
Gross Margin | $ | 32,523 | $ | 31,808 | $ | 715 | 2.2 | % | ||||||||||||||||||||||||||||||
Six Months Ended June 30, | Change | |||||||||||||||
(dollars in thousands, unaudited) | 2019 | 2018 | $ | % | ||||||||||||
Canada – constant currency basis: | ||||||||||||||||
Revenues | $ | 110,754 | $ | 93,293 | $ | 17,461 | 18.7 | % | ||||||||
Gross Margin | 33,211 | 27,802 | 5,409 | 19.5 | % |
June 30, | December 31, | Change | ||||||||||||||||||||||||||||||
(in thousands, unaudited) | 2020 | 2019 | $ | % | ||||||||||||||||||||||||||||
Canada – constant currency basis: | ||||||||||||||||||||||||||||||||
Gross loans receivable | $ | 269,802 | $ | 302,376 | $ | (32,574) | (10.8) | % | ||||||||||||||||||||||||
Capacity | Interest Rate | Maturity | Counter-parties | Balance as of June 30, 2020 | ||||||||||||||||||||||||||||||||||
Non-Recourse Canada SPV Facility (1) | C$175.0 million | 3-Mo CDOR + 6.75% | September 2, 2023 | Waterfall Asset Management | $ | 88,789 | ||||||||||||||||||||||||||||||||
Senior Secured Revolving Credit Facility | $50.0 million | 1-Mo LIBOR + 5.00% | June 30, 2021 | BayCoast Bank; Stride Bank; Hancock-Whitney Bank; Metropolitan Commercial Bank | — | |||||||||||||||||||||||||||||||||
Non-Recourse U.S. SPV Facility | $200.0 million | 1-Mo LIBOR + 6.25(2) | April 8, 2024 | Atalaya Capital Management | 31,896 | |||||||||||||||||||||||||||||||||
Cash Money Revolving Credit Facility (1) | C$10.0 million | Canada Prime Rate +1.95% | On-demand | Royal Bank of Canada | — | |||||||||||||||||||||||||||||||||
8.25% Senior Secured Notes (due 2025) | $690.0 million | 8.25% | September 1, 2025 | $ | 679,143 | |||||||||||||||||||||||||||||||||
(1) Capacity amounts are denominated in Canadian dollars, while outstanding balances as of June 30, 2020 are denominated in U.S. dollars. | ||||||||||||||||||||||||||||||||||||||
(2) The Non-Recourse U.S. SPV Facility initially provided for $100.0 million of borrowing capacity and, on July 31, 2020, additional commitments were obtained increasing capacity to $200.0 million. As a result of the increase in commitments, interest now accrues at an annual rate of one-month LIBOR (with a floor of 1.65%) plus 6.25% on balances up to $145.5 million. Balances over that amount accrue interest at an annual rate of one-month LIBOR (with a floor of 1.65%) plus 9.75%. |
June 30, | December 31, | |||||
(dollars in thousands) | 2019 | 2018 | ||||
8.25% Senior Secured Notes (due 2025) | $ | 677,535 | $ | 676,661 | ||
Non-Recourse Canada SPV Facility | 90,977 | 107,479 | ||||
Senior Revolver | — | 20,000 | ||||
Long-term debt | $ | 768,512 | $ | 804,140 |
June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | CURO | Subsidiary Guarantors | U.S. SPV | Canada SPV | Subsidiary Non-Guarantors | Eliminations | CURO Consolidated | ||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 193,605 | $ | — | $ | — | $ | 75,737 | $ | — | $ | 269,342 | |||||||||||||||||||||||||||
Restricted cash | — | 21,142 | 16,455 | 22,793 | 2,884 | — | 63,274 | ||||||||||||||||||||||||||||||||||
Loans receivable, net | — | 105,903 | 47,925 | 194,915 | 31,314 | — | 380,057 | ||||||||||||||||||||||||||||||||||
Income taxes receivable | 42,755 | (24,444) | — | — | 494 | — | 18,805 | ||||||||||||||||||||||||||||||||||
Prepaid expenses and other | — | 24,616 | — | 699 | 7,545 | — | 32,860 | ||||||||||||||||||||||||||||||||||
Property and equipment, net | — | 39,974 | — | — | 24,285 | — | 64,259 | ||||||||||||||||||||||||||||||||||
Right of use asset - operating leases | — | 73,402 | — | — | 38,458 | — | 111,860 | ||||||||||||||||||||||||||||||||||
Deferred tax assets | 14,230 | (14,230) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Goodwill | — | 105,922 | — | — | 28,055 | — | 133,977 | ||||||||||||||||||||||||||||||||||
Other intangibles, net | — | 14,429 | — | — | 21,278 | — | 35,707 | ||||||||||||||||||||||||||||||||||
Intercompany receivable | — | 142,884 | — | — | — | (142,884) | — | ||||||||||||||||||||||||||||||||||
Investment in subsidiaries | 136,508 | — | — | — | — | (136,508) | — | ||||||||||||||||||||||||||||||||||
Other assets | — | 16,366 | — | — | 652 | — | 17,018 | ||||||||||||||||||||||||||||||||||
Total assets | $ | 193,493 | $ | 699,569 | $ | 64,380 | $ | 218,407 | $ | 230,702 | $ | (279,392) | $ | 1,127,159 | |||||||||||||||||||||||||||
Liabilities and Stockholders' equity (deficit): | |||||||||||||||||||||||||||||||||||||||||
Accounts payable and accrued liabilities | $ | (15) | $ | 49,273 | $ | 240 | $ | 20,327 | $ | (5,865) | $ | — | $ | 63,960 | |||||||||||||||||||||||||||
Deferred revenue | — | 3,202 | 77 | 34 | 1,661 | — | 4,974 | ||||||||||||||||||||||||||||||||||
Lease liability - operating leases | — | 81,314 | — | — | 38,453 | — | 119,767 | ||||||||||||||||||||||||||||||||||
Income taxes payable | (6,796) | 6,796 | — | — | — | — | |||||||||||||||||||||||||||||||||||
Accrued interest | 18,975 | — | 362 | 668 | — | — | 20,005 | ||||||||||||||||||||||||||||||||||
Liability for losses on CSO lender-owned consumer loans | — | 5,164 | — | — | — | — | 5,164 | ||||||||||||||||||||||||||||||||||
Debt | 679,143 | — | 31,896 | 88,789 | — | — | 799,828 | ||||||||||||||||||||||||||||||||||
Intercompany payable | — | (16,393) | 16,393 | 41,443 | 101,441 | (142,884) | — | ||||||||||||||||||||||||||||||||||
Payable to CURO Holdings Corp. | (600,167) | 600,167 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Other long-term liabilities | — | 11,402 | — | — | 59 | — | 11,461 | ||||||||||||||||||||||||||||||||||
Deferred tax liabilities | 9,411 | — | — | — | (353) | — | 9,058 | ||||||||||||||||||||||||||||||||||
Total liabilities | 100,551 | 740,925 | 48,968 | 151,261 | 135,396 | (142,884) | 1,034,217 | ||||||||||||||||||||||||||||||||||
Stockholders' equity (deficit) | 92,942 | (41,356) | 15,412 | 67,146 | 95,306 | (136,508) | 92,942 | ||||||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity (deficit) | $ | 193,493 | $ | 699,569 | $ | 64,380 | $ | 218,407 | $ | 230,702 | $ | (279,392) | $ | 1,127,159 |
December 31, 2019 | ||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | CURO | Subsidiary Guarantors | Canada SPV | Subsidiary Non-Guarantors | Eliminations | CURO Consolidated | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 44,727 | $ | — | $ | 30,515 | $ | — | $ | 75,242 | ||||||||||||||||||||||||||
Restricted cash | — | 14,958 | 17,427 | 2,394 | — | 34,779 | ||||||||||||||||||||||||||||||||
Loans receivable, net | — | 286,881 | 220,067 | 52,045 | — | 558,993 | ||||||||||||||||||||||||||||||||
Right of use asset - operating leases | — | 74,845 | — | 42,608 | — | 117,453 | ||||||||||||||||||||||||||||||||
Deferred tax asset | 8,561 | (3,506) | — | — | — | 5,055 | ||||||||||||||||||||||||||||||||
Income taxes receivable | 19,690 | (8,987) | — | 723 | — | 11,426 | ||||||||||||||||||||||||||||||||
Prepaid expenses and other | — | 26,623 | — | 9,267 | — | 35,890 | ||||||||||||||||||||||||||||||||
Property and equipment, net | — | 43,618 | — | 27,193 | — | 70,811 | ||||||||||||||||||||||||||||||||
Goodwill | — | 91,131 | — | 29,478 | — | 120,609 | ||||||||||||||||||||||||||||||||
Other intangibles, net | — | 11,569 | — | 22,358 | — | 33,927 | ||||||||||||||||||||||||||||||||
Intercompany receivable | — | 113,599 | — | — | (113,599) | — | ||||||||||||||||||||||||||||||||
Investment in subsidiaries | 84,514 | — | — | — | (84,514) | — | ||||||||||||||||||||||||||||||||
Other assets | — | 17,006 | — | 704 | — | 17,710 | ||||||||||||||||||||||||||||||||
Total assets | $ | 112,765 | $ | 712,464 | $ | 237,494 | $ | 217,285 | $ | (198,113) | $ | 1,081,895 | ||||||||||||||||||||||||||
Liabilities and Stockholder's equity (deficit): | ||||||||||||||||||||||||||||||||||||||
Accounts payable and accrued liabilities | $ | 465 | $ | 48,333 | $ | 13,462 | $ | (2,177) | $ | — | $ | 60,083 | ||||||||||||||||||||||||||
Deferred revenue | — | 6,828 | 46 | 3,296 | — | 10,170 | ||||||||||||||||||||||||||||||||
Lease liability - operating leases | — | 82,593 | — | 42,406 | — | 124,999 | ||||||||||||||||||||||||||||||||
Accrued interest | 18,975 | 1 | 871 | — | — | 19,847 | ||||||||||||||||||||||||||||||||
Payable to CURO Holdings Corp. | (635,511) | 635,511 | — | — | — | — | ||||||||||||||||||||||||||||||||
CSO liability for losses | — | 10,623 | — | — | — | 10,623 | ||||||||||||||||||||||||||||||||
Debt | 678,323 | — | 112,221 | — | — | 790,544 | ||||||||||||||||||||||||||||||||
Intercompany payable | — | — | 69,639 | 43,960 | (113,599) | — | ||||||||||||||||||||||||||||||||
Other liabilities | — | 10,285 | — | 379 | — | 10,664 | ||||||||||||||||||||||||||||||||
Liabilities from discontinued operations | — | — | — | 4,452 | — | 4,452 | ||||||||||||||||||||||||||||||||
Total liabilities | 62,252 | 794,174 | 196,239 | 92,316 | (113,599) | 1,031,382 | ||||||||||||||||||||||||||||||||
Stockholders' equity (deficit) | 50,513 | (81,710) | 41,255 | 124,969 | (84,514) | 50,513 | ||||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity (deficit) | $ | 112,765 | $ | 712,464 | $ | 237,494 | $ | 217,285 | $ | (198,113) | $ | 1,081,895 |
Three Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | CURO | Subsidiary Guarantors | U.S. SPV | Canada SPV | Subsidiary Non-Guarantors | Eliminations | CURO Consolidated | ||||||||||||||||||||||||||||||||||
Revenue | $ | — | $ | 97,485 | $ | 39,835 | $ | 30,372 | $ | 14,817 | $ | — | $ | 182,509 | |||||||||||||||||||||||||||
Provision for losses | — | 18,352 | 23,178 | 9,244 | (81) | — | 50,693 | ||||||||||||||||||||||||||||||||||
Net revenue | — | 79,133 | 16,657 | 21,128 | 14,898 | — | 131,816 | ||||||||||||||||||||||||||||||||||
Cost of providing services: | |||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | — | 16,663 | — | — | 8,060 | — | 24,723 | ||||||||||||||||||||||||||||||||||
Occupancy | — | 7,586 | — | — | 5,457 | — | 13,043 | ||||||||||||||||||||||||||||||||||
Office | — | 2,777 | — | — | 1,023 | — | 3,800 | ||||||||||||||||||||||||||||||||||
Other costs of providing services | — | 6,635 | — | — | 1,366 | — | 8,001 | ||||||||||||||||||||||||||||||||||
Advertising | — | 5,269 | — | — | 481 | — | 5,750 | ||||||||||||||||||||||||||||||||||
Total cost of providing services | — | 38,930 | — | — | 16,387 | — | 55,317 | ||||||||||||||||||||||||||||||||||
Gross margin | — | 40,203 | 16,657 | 21,128 | (1,489) | — | 76,499 | ||||||||||||||||||||||||||||||||||
Operating expense (income): | |||||||||||||||||||||||||||||||||||||||||
Corporate, district and other expenses | 3,398 | 26,197 | 37 | 104 | 7,045 | — | 36,781 | ||||||||||||||||||||||||||||||||||
Intercompany management fee | — | (3,345) | — | 645 | 2,700 | — | — | ||||||||||||||||||||||||||||||||||
Interest expense | 14,647 | 258 | 1,208 | 2,112 | 86 | — | 18,311 | ||||||||||||||||||||||||||||||||||
Gain from equity method investment | — | (741) | — | — | — | — | (741) | ||||||||||||||||||||||||||||||||||
Intercompany interest (income) expense | — | (1,442) | — | 533 | 909 | — | — | ||||||||||||||||||||||||||||||||||
Total operating expense | 18,045 | 20,927 | 1,245 | 3,394 | 10,740 | — | 54,351 | ||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | (18,045) | 19,276 | 15,412 | 17,734 | (12,229) | — | 22,148 | ||||||||||||||||||||||||||||||||||
Provision (benefit) for income tax expense | (2,872) | 7,504 | — | — | (3,564) | — | 1,068 | ||||||||||||||||||||||||||||||||||
Net income (loss) from continuing operations | (15,173) | 11,772 | 15,412 | 17,734 | (8,665) | — | 21,080 | ||||||||||||||||||||||||||||||||||
Net income on discontinued operations | — | — | — | — | 993 | — | 993 | ||||||||||||||||||||||||||||||||||
Net income (loss) | (15,173) | 11,772 | 15,412 | 17,734 | (7,672) | — | 22,073 | ||||||||||||||||||||||||||||||||||
Equity in net income (loss) of subsidiaries: | |||||||||||||||||||||||||||||||||||||||||
CFTC | 37,246 | — | — | — | — | (37,246) | — | ||||||||||||||||||||||||||||||||||
Guarantor Subsidiaries | — | 11,772 | — | — | — | (11,772) | — | ||||||||||||||||||||||||||||||||||
Non-Guarantor Subsidiaries | — | (7,672) | — | — | — | 7,672 | — | ||||||||||||||||||||||||||||||||||
U.S. SPV | — | 15,412 | — | — | — | (15,412) | — | ||||||||||||||||||||||||||||||||||
Canada SPV | — | 17,734 | — | — | — | (17,734) | — | ||||||||||||||||||||||||||||||||||
Net income (loss) attributable to CURO | $ | 22,073 | $ | 49,018 | $ | 15,412 | $ | 17,734 | $ | (7,672) | $ | (74,492) | $ | 22,073 |
Three Months Ended June 30, 2019 | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | CURO | Subsidiary Guarantors | Canada SPV | Subsidiary Non-Guarantors | Eliminations | CURO Consolidated | |||||||||||||||||||||||||||||
Revenue | $ | — | $ | 210,046 | $ | 26,092 | $ | 28,162 | $ | — | $ | 264,300 | |||||||||||||||||||||||
Provision for losses | — | 92,552 | 13,114 | 6,344 | — | 112,010 | |||||||||||||||||||||||||||||
Net revenue | — | 117,494 | 12,978 | 21,818 | — | 152,290 | |||||||||||||||||||||||||||||
Cost of providing services: | |||||||||||||||||||||||||||||||||||
Salaries and benefits | — | 17,422 | — | 8,664 | — | 26,086 | |||||||||||||||||||||||||||||
Occupancy | — | 8,033 | — | 5,899 | — | 13,932 | |||||||||||||||||||||||||||||
Office | — | 4,004 | — | 1,453 | — | 5,457 | |||||||||||||||||||||||||||||
Other costs of providing services | — | 11,789 | — | 1,065 | — | 12,854 | |||||||||||||||||||||||||||||
Advertising | — | 11,179 | — | 1,601 | — | 12,780 | |||||||||||||||||||||||||||||
Total cost of providing services | — | 52,427 | — | 18,682 | — | 71,109 | |||||||||||||||||||||||||||||
Gross margin | — | 65,067 | 12,978 | 3,136 | — | 81,181 | |||||||||||||||||||||||||||||
Operating (income) expense: | |||||||||||||||||||||||||||||||||||
Corporate, district and other expenses | 2,631 | 30,766 | (781) | 6,422 | — | 39,038 | |||||||||||||||||||||||||||||
Intercompany management fee | — | (3,237) | 8 | 3,229 | — | — | |||||||||||||||||||||||||||||
Interest expense | 14,614 | 27 | 2,375 | 7 | — | 17,023 | |||||||||||||||||||||||||||||
Intercompany interest (income) expense | — | (1,513) | 623 | 890 | — | — | |||||||||||||||||||||||||||||
Total operating expense | 17,245 | 26,043 | 2,225 | 10,548 | — | 56,061 | |||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | (17,245) | 39,024 | 10,753 | (7,412) | — | 25,120 | |||||||||||||||||||||||||||||
Provision (benefit) for income tax expense | (3,232) | 9,591 | — | 1,094 | — | 7,453 | |||||||||||||||||||||||||||||
Net (loss) income from continuing operations | (14,013) | 29,433 | 10,753 | (8,506) | — | 17,667 | |||||||||||||||||||||||||||||
Net loss on discontinued operations | — | — | — | (834) | — | (834) | |||||||||||||||||||||||||||||
Net (loss) income | (14,013) | 29,433 | 10,753 | (9,340) | — | 16,833 | |||||||||||||||||||||||||||||
Equity in net income (loss) of subsidiaries: | |||||||||||||||||||||||||||||||||||
CFTC | 30,846 | — | — | — | (30,846) | — | |||||||||||||||||||||||||||||
Guarantor Subsidiaries | — | 29,433 | — | — | (29,433) | — | |||||||||||||||||||||||||||||
Non-Guarantor Subsidiaries | — | (9,340) | — | — | 9,340 | — | |||||||||||||||||||||||||||||
Canada SPV | — | 10,753 | — | (10,753) | — | ||||||||||||||||||||||||||||||
Net income (loss) attributable to CURO | $ | 16,833 | $ | 60,279 | $ | 10,753 | $ | (9,340) | $ | (61,692) | $ | 16,833 |
Six Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | CURO | Subsidiary Guarantors | U.S. SPV | Canada SPV | Subsidiary Non-Guarantors | Eliminations | CURO Consolidated | ||||||||||||||||||||||||||||||||||
Revenue | $ | — | $ | 319,253 | $ | 39,835 | $ | 64,398 | $ | 39,829 | $ | — | $ | 463,315 | |||||||||||||||||||||||||||
Provision for losses | — | 104,393 | 23,178 | 28,976 | 7,682 | — | 164,229 | ||||||||||||||||||||||||||||||||||
Net revenue | — | 214,860 | 16,657 | 35,422 | 32,147 | — | 299,086 | ||||||||||||||||||||||||||||||||||
Cost of providing services: | |||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | — | 33,575 | — | — | 17,155 | — | 50,730 | ||||||||||||||||||||||||||||||||||
Occupancy | — | 15,411 | — | — | 11,648 | — | 27,059 | ||||||||||||||||||||||||||||||||||
Office | — | 7,077 | — | — | 2,397 | — | 9,474 | ||||||||||||||||||||||||||||||||||
Other costs of providing services | — | 14,840 | — | — | 2,816 | — | 17,656 | ||||||||||||||||||||||||||||||||||
Advertising | — | 16,214 | — | — | 1,755 | — | 17,969 | ||||||||||||||||||||||||||||||||||
Total cost of providing services | — | 87,117 | — | — | 35,771 | — | 122,888 | ||||||||||||||||||||||||||||||||||
Gross margin | — | 127,743 | 16,657 | 35,422 | (3,624) | — | 176,198 | ||||||||||||||||||||||||||||||||||
Operating expense (income): | |||||||||||||||||||||||||||||||||||||||||
Corporate, district and other expenses | 6,791 | 60,453 | 37 | 278 | 12,029 | — | 79,588 | ||||||||||||||||||||||||||||||||||
Intercompany management fee | — | (7,144) | — | 1,375 | 5,769 | — | — | ||||||||||||||||||||||||||||||||||
Interest expense | 29,284 | 467 | 1,208 | 4,733 | (57) | — | 35,635 | ||||||||||||||||||||||||||||||||||
Loss from equity method investment | — | 877 | — | — | — | — | 877 | ||||||||||||||||||||||||||||||||||
Intercompany interest (income) expense | — | (2,883) | — | 1,083 | 1,800 | — | — | ||||||||||||||||||||||||||||||||||
Total operating expense | 36,075 | 51,770 | 1,245 | 7,469 | 19,541 | — | 116,100 | ||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | (36,075) | 75,973 | 15,412 | 27,953 | (23,165) | — | 60,098 | ||||||||||||||||||||||||||||||||||
Provision (benefit) for income tax expense | (26,119) | 32,502 | — | — | (3,378) | — | 3,005 | ||||||||||||||||||||||||||||||||||
Net income (loss) from continuing operations | (9,956) | 43,471 | 15,412 | 27,953 | (19,787) | — | 57,093 | ||||||||||||||||||||||||||||||||||
Net income on discontinued operations | — | — | — | — | 1,285 | — | 1,285 | ||||||||||||||||||||||||||||||||||
Net income (loss) | (9,956) | 43,471 | 15,412 | 27,953 | (18,502) | — | 58,378 | ||||||||||||||||||||||||||||||||||
Equity in net income (loss) of subsidiaries: | |||||||||||||||||||||||||||||||||||||||||
CFTC | 68,334 | — | — | — | — | (68,334) | — | ||||||||||||||||||||||||||||||||||
Guarantor Subsidiaries | — | 43,471 | — | — | — | (43,471) | — | ||||||||||||||||||||||||||||||||||
Non-Guarantor Subsidiaries | — | (18,502) | — | — | — | 18,502 | — | ||||||||||||||||||||||||||||||||||
U.S. SPV | — | 15,412 | — | — | — | (15,412) | — | ||||||||||||||||||||||||||||||||||
Canada SPV | — | 27,953 | — | — | — | (27,953) | — | ||||||||||||||||||||||||||||||||||
Net income (loss) attributable to CURO | $ | 58,378 | $ | 111,805 | $ | 15,412 | $ | 27,953 | $ | (18,502) | $ | (136,668) | $ | 58,378 |
Six Months Ended June 30, 2019 | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | CURO | Subsidiary Guarantors | Canada SPV | Subsidiary Non-Guarantors | Eliminations | CURO Consolidated | |||||||||||||||||||||||||||||
Revenue | $ | — | $ | 436,165 | $ | 51,138 | $ | 54,936 | $ | — | $ | 542,239 | |||||||||||||||||||||||
Provision for losses | — | 177,532 | 26,420 | 10,443 | — | 214,395 | |||||||||||||||||||||||||||||
Net revenue | — | 258,633 | 24,718 | 44,493 | — | 327,844 | |||||||||||||||||||||||||||||
Cost of providing services: | |||||||||||||||||||||||||||||||||||
Salaries and benefits | — | 37,373 | — | 17,414 | — | 54,787 | |||||||||||||||||||||||||||||
Occupancy | — | 16,043 | — | 12,126 | — | 28,169 | |||||||||||||||||||||||||||||
Office | — | 7,893 | — | 2,677 | — | 10,570 | |||||||||||||||||||||||||||||
Other costs of providing services | — | 24,921 | — | 2,153 | — | 27,074 | |||||||||||||||||||||||||||||
Advertising | — | 17,533 | — | 3,033 | — | 20,566 | |||||||||||||||||||||||||||||
Total cost of providing services | — | 103,763 | — | 37,403 | — | 141,166 | |||||||||||||||||||||||||||||
Gross margin | — | 154,870 | 24,718 | 7,090 | — | 186,678 | |||||||||||||||||||||||||||||
Operating expense (income): | |||||||||||||||||||||||||||||||||||
Corporate, district and other expenses | 4,973 | 72,304 | (755) | 11,604 | — | 88,126 | |||||||||||||||||||||||||||||
Intercompany management fee | — | (6,300) | 16 | 6,284 | — | — | |||||||||||||||||||||||||||||
Interest expense | 29,052 | 317 | 5,265 | 79 | — | 34,713 | |||||||||||||||||||||||||||||
Intercompany interest (income) expense | — | (2,393) | 623 | 1,770 | — | — | |||||||||||||||||||||||||||||
Total operating expense | 34,025 | 63,928 | 5,149 | 19,737 | — | 122,839 | |||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | (34,025) | 90,942 | 19,569 | (12,647) | — | 63,839 | |||||||||||||||||||||||||||||
Provision (benefit) for income tax expense | (8,240) | 23,610 | — | 2,129 | — | 17,499 | |||||||||||||||||||||||||||||
Net (loss) income from continuing operations | (25,785) | 67,332 | 19,569 | (14,776) | — | 46,340 | |||||||||||||||||||||||||||||
Net income on discontinued operations | — | — | — | 7,541 | — | 7,541 | |||||||||||||||||||||||||||||
Net (loss) income | (25,785) | 67,332 | 19,569 | (7,235) | — | 53,881 | |||||||||||||||||||||||||||||
Equity in net income (loss) of subsidiaries: | |||||||||||||||||||||||||||||||||||
CFTC | 79,666 | — | — | — | (79,666) | — | |||||||||||||||||||||||||||||
Guarantor Subsidiaries | — | 67,332 | — | — | (67,332) | — | |||||||||||||||||||||||||||||
Non-Guarantor Subsidiaries | — | (7,235) | — | — | 7,235 | — | |||||||||||||||||||||||||||||
Canada SPV | 19,569 | — | — | (19,569) | — | ||||||||||||||||||||||||||||||
Net income (loss) attributable to CURO | $ | 53,881 | $ | 146,998 | $ | 19,569 | $ | (7,235) | $ | (159,332) | $ | 53,881 |
Six Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | CURO | Subsidiary Guarantors | U.S. SPV | Canada SPV | Subsidiary Non-Guarantors | Eliminations | CURO Consolidated | ||||||||||||||||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||||||||||||||||||||
Net cash provided by continuing operating activities | $ | 6,546 | $ | 146,503 | $ | 41,569 | $ | 39,603 | $ | 38,099 | $ | (1,520) | $ | 270,800 | |||||||||||||||||||||||||||
Net cash used in discontinued operating activities | — | — | — | — | 1,714 | — | 1,714 | ||||||||||||||||||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||||||||||||||||||
Purchase of property and equipment | — | (4,240) | — | — | (484) | — | (4,724) | ||||||||||||||||||||||||||||||||||
Originations of loans, net | — | 31,591 | (56,789) | (14,746) | 8,123 | — | (31,821) | ||||||||||||||||||||||||||||||||||
Acquisition of Ad Astra, net of acquiree's cash received | — | (14,418) | — | — | — | — | (14,418) | ||||||||||||||||||||||||||||||||||
Net cash provided by (used in) continuing investing activities | — | 12,933 | (56,789) | (14,746) | 7,639 | — | (50,963) | ||||||||||||||||||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||||||||||||||||||
Proceeds from Non-Recourse Canada SPV facility | — | — | — | 23,180 | — | — | 23,180 | ||||||||||||||||||||||||||||||||||
Payments on Non-Recourse Canada SPV facility | — | — | — | (41,812) | — | — | (41,812) | ||||||||||||||||||||||||||||||||||
Proceeds from Non-Recourse U.S. SPV facility | — | — | 35,206 | — | — | — | 35,206 | ||||||||||||||||||||||||||||||||||
Proceeds from credit facilities | — | 60,000 | — | — | 9,778 | — | 69,778 | ||||||||||||||||||||||||||||||||||
Payments on credit facilities | — | (60,000) | — | — | (9,778) | — | (69,778) | ||||||||||||||||||||||||||||||||||
Payments to net share settle RSUs | (638) | — | — | — | — | — | (638) | ||||||||||||||||||||||||||||||||||
Proceeds from exercise of stock options | — | 126 | — | — | — | — | 126 | ||||||||||||||||||||||||||||||||||
Debt issuance costs paid | — | — | (3,531) | — | — | — | (3,531) | ||||||||||||||||||||||||||||||||||
Repurchase of common stock | (5,908) | — | — | — | — | — | (5,908) | ||||||||||||||||||||||||||||||||||
Dividends paid to CURO Group Holdings Corp. | 4,500 | (4,500) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Dividends paid to stockholders | (4,500) | — | — | — | — | — | (4,500) | ||||||||||||||||||||||||||||||||||
Net cash (used in) provided by financing activities (1) | (6,546) | (4,374) | 31,675 | (18,632) | — | — | 2,123 | ||||||||||||||||||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | — | — | — | (859) | (1,740) | 1,520 | (1,079) | ||||||||||||||||||||||||||||||||||
Net increase in cash, cash equivalents and restricted cash | — | 155,062 | 16,455 | 5,366 | 45,712 | — | 222,595 | ||||||||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | — | 59,685 | — | 17,427 | 32,909 | — | 110,021 | ||||||||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | — | $ | 214,747 | $ | 16,455 | $ | 22,793 | $ | 78,621 | $ | — | $ | 332,616 | |||||||||||||||||||||||||||
Six Months Ended June 30, 2019 | ||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | CURO | Subsidiary Guarantors | Canada SPV | Subsidiary Non-Guarantors | Eliminations | CURO Consolidated | ||||||||||||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||||||||||||||||
Net cash provided by continuing operating activities | $ | 1,833 | $ | 204,323 | $ | 93,690 | $ | 10,929 | $ | 1,544 | $ | 312,319 | ||||||||||||||||||||||||||
Net cash used in discontinued operating activities | — | — | — | (504) | — | (504) | ||||||||||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||||||
Purchase of property and equipment | — | (4,998) | — | (1,166) | — | (6,164) | ||||||||||||||||||||||||||||||||
Originations of loans, net | — | (142,871) | (71,101) | (3,227) | — | (217,199) | ||||||||||||||||||||||||||||||||
Cash paid for Katapult investment | — | (4,368) | — | — | — | (4,368) | ||||||||||||||||||||||||||||||||
Net cash used in continuing investing activities | — | (152,237) | (71,101) | (4,393) | — | (227,731) | ||||||||||||||||||||||||||||||||
Net cash used in discontinued investing activities | — | — | — | (14,213) | — | (14,213) | ||||||||||||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||||||||||
Proceeds from Non-Recourse Canada SPV facility | — | — | 3,750 | — | — | 3,750 | ||||||||||||||||||||||||||||||||
Payments on Non-Recourse Canada SPV facility | — | — | (24,752) | — | — | (24,752) | ||||||||||||||||||||||||||||||||
Proceeds from credit facilities | — | 30,000 | — | 38,002 | — | 68,002 | ||||||||||||||||||||||||||||||||
Payments on credit facilities | — | (50,000) | — | (38,002) | — | (88,002) | ||||||||||||||||||||||||||||||||
Payments on subordinated stockholder debt | — | — | — | (2,245) | — | (2,245) | ||||||||||||||||||||||||||||||||
Proceeds from exercise of stock options | (42) | 69 | — | — | — | 27 | ||||||||||||||||||||||||||||||||
Debt issuance costs paid | (29) | — | (169) | — | — | (198) | ||||||||||||||||||||||||||||||||
Repurchase of common stock | (1,762) | — | — | — | — | (1,762) | ||||||||||||||||||||||||||||||||
Net cash used in provided by financing activities (1) | (1,833) | (19,931) | (21,171) | (2,245) | — | (45,180) | ||||||||||||||||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | — | — | 561 | 2,444 | (1,544) | 1,461 | ||||||||||||||||||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | — | 32,155 | 1,979 | (7,982) | — | 26,152 | ||||||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | — | 52,397 | 12,840 | 34,620 | — | 99,857 | ||||||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | — | $ | 84,552 | $ | 14,819 | $ | 26,638 | $ | — | $ | 126,009 | ||||||||||||||||||||||||||
(1) Financing activities include continuing operations only and were not impacted by discontinued operations. |
Six Months Ended June 30, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
Net cash provided by continuing operating activities | $ | 270,800 | $ | 312,319 | ||||||||||||||||
Net cash used in continuing investing activities | (50,963) | (227,731) | ||||||||||||||||||
Net cash provided by (used in) continuing financing activities | 2,123 | (45,180) | ||||||||||||||||||
Six Months Ended June 30, | ||||||||
(dollars in thousands) | 2019 | 2018 | ||||||
Net cash provided by continuing operating activities | $ | 312,319 | $ | 246,733 | ||||
Net cash used in continuing investing activities | (227,731 | ) | (198,551 | ) | ||||
Net cash used in continuing financing activities | (45,180 | ) | (80,661 | ) |
(in thousands) | June 30, 2020 | Percent of Total | December 31, 2019 | Percent of Total | |||||||||||||
U.S. | $ | 105,922 | 79.1 | % | $ | 91,131 | 75.6 | % | |||||||||
Canada | 28,055 | 20.9 | % | 29,478 | 24.4 | % | |||||||||||
Total Goodwill | $ | 133,977 | $ | 120,609 |
Period | Total Number of Shares Purchased(1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Dollar Value of Shares that may yet be Purchased under the Plans or Programs(2) (In milions) | ||||||
April 2019 | 2,790 | $ | 12.14 | — | $ | — | ||||
May 2019 | — | — | — | |||||||
June 2019 | — | — | 244,200 | 47.5 | ||||||
Total | 2,790 | $ | 12.14 | 244,200 | $ | 47.5 | ||||
(1) Represents shares withheld from employees as tax payments for shares issued under our stock-based compensation plans. See Note 11, "Share-Based Compensation" of the Notes to Consolidated Financial Statements for additional details on our stock-based compensation plans. | ||||||||||
(2) As of the end of the period. |
Exhibit no. | Exhibit Description | |||||||
10.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
101 | The following unaudited financial information from the Company's Quarterly Report on Form 10-Q for the period ended June 30, | |||||||
By: | /s/ Roger Dean | ||||||||||
Roger Dean | |||||||||||
Executive |