Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2016shares | |
Document and Entity Information | |
Entity Registrant Name | Community Choice Financial Inc. |
Entity Central Index Key | 1,528,061 |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2016 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 7,981,536 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 89,748 | $ 98,941 |
Restricted cash | 3,300 | 3,460 |
Finance receivables, net of allowance for loan losses of $15,200 and $20,552 | 101,258 | 119,704 |
Short-term investments, certificates of deposit | 400 | 1,115 |
Card related pre-funding and receivables | 1,702 | 1,674 |
Other current assets | 17,551 | 17,024 |
Total current assets | 213,959 | 241,918 |
Noncurrent Assets | ||
Finance receivables, net of allowance for loan losses of $3,102 and $3,340 | 7,967 | 8,797 |
Property, leasehold improvements and equipment, net | 40,154 | 46,085 |
Goodwill | 146,877 | 152,568 |
Other intangible assets | 1,336 | 1,913 |
Security deposits | 2,741 | 3,098 |
Deferred tax asset, net | 1,424 | 5,165 |
Total assets | 414,458 | 459,544 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 29,096 | 34,616 |
Money orders payable | 7,106 | 11,233 |
Accrued interest | 4,805 | 6,707 |
Current portion of capital lease obligation | 1,387 | 1,567 |
Current portion of line of credit, net of deferred issuance costs of $341 and $-0- | 31,359 | |
Current portion of related party Florida seller notes | 10,097 | |
Current portion of subsidiary notes payable, net of deferred issuance costs of $101 and $3 | 8,110 | 211 |
Deferred revenue | 2,759 | 3,154 |
Total current liabilities | 84,622 | 67,585 |
Noncurrent Liabilities | ||
Lease termination payable | 1,400 | 1,322 |
Capital lease obligation | 783 | 1,485 |
Stock repurchase obligation | 3,130 | |
Lines of credit, net of deferred issuance costs of $26 and $575 | 2,224 | 26,625 |
Subsidiary notes payable, net of deferred issuance costs of $951 and $434 | 40,565 | 35,506 |
Senior secured notes, net of deferred issuance costs of $3,522 and $5,803 | 250,905 | 347,913 |
Deferred revenue | 9,900 | |
Total liabilities | 390,399 | 483,566 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Preferred stock, par value $.01 per share, 3,000 shares authorized, no shares issued and outstanding | ||
Common stock, par value $.01 per share, 300,000 authorized shares and 7,982 outstanding shares at June 30, 2016 and 8,982 outstanding shares at December 31, 2015 | 90 | 90 |
Additional paid-in capital | 129,601 | 128,331 |
Retained deficit | (105,582) | (152,443) |
Treasury Stock | (50) | |
Total stockholders' equity (deficit) | 24,059 | (24,022) |
Total liabilities and stockholders' equity | $ 414,458 | $ 459,544 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Stockholders' equity | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 3,000 | 3,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 300,000 | 300,000 |
Common stock, shares outstanding | 7,982 | 8,982 |
Finance receivables, net | ||
Finance receivables current, allowance for loan losses (in dollars) | $ 15,200 | $ 20,552 |
Finance receivables noncurrent, allowance for loan losses (in dollars) | 3,102 | 3,340 |
Revolving Credit Facility | ||
Finance receivables, net | ||
Net of deferred issuance costs, current liabilities (in dollars) | 341 | 0 |
Net of deferred issuance costs, noncurrent liabilities (in dollars) | 26 | 575 |
Subsidiary Note payable | ||
Finance receivables, net | ||
Net of deferred issuance costs, current liabilities (in dollars) | 101 | 3 |
Net of deferred issuance costs, noncurrent liabilities (in dollars) | 951 | 434 |
Senior secured notes payable | ||
Finance receivables, net | ||
Net of deferred issuance costs, noncurrent liabilities (in dollars) | $ 3,522 | $ 5,803 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues: | ||||
Finance receivable fees | $ 57,952 | $ 80,410 | $ 121,836 | $ 163,029 |
Credit service fees | 21,170 | 25,547 | 43,273 | 52,934 |
Check cashing fees | 11,975 | 16,261 | 25,330 | 33,438 |
Card fees | 2,040 | 2,191 | 4,188 | 4,483 |
Other | 5,192 | 5,855 | 11,259 | 12,814 |
Total revenues | 98,329 | 130,264 | 205,886 | 266,698 |
Operating expenses: | ||||
Salaries and benefits | 17,069 | 20,575 | 35,348 | 41,136 |
Provision for loan losses | 30,272 | 51,916 | 56,747 | 91,826 |
Occupancy | 6,578 | 7,719 | 13,238 | 15,296 |
Advertising and marketing | 2,539 | 7,501 | 5,217 | 12,303 |
Lease termination | 1,101 | 826 | 1,101 | 826 |
Depreciation and amortization | 2,540 | 2,491 | 5,274 | 4,884 |
Other | 15,324 | 14,793 | 27,936 | 28,837 |
Total operating expenses | 75,423 | 105,821 | 144,861 | 195,108 |
Operating gross profit | 22,906 | 24,443 | 61,025 | 71,590 |
Operating expenses: | ||||
Corporate expenses | 22,801 | 21,702 | 44,386 | 42,521 |
Depreciation and amortization | 1,222 | 1,395 | 2,431 | 2,810 |
Interest expense, net | 10,847 | 15,151 | 22,310 | 29,359 |
Loss on sale of subsidiary | 1,569 | |||
Gain on debt extinguishment | (62,852) | |||
Market Value of Stock Repurchase Obligation | 1,020 | 1,010 | ||
Total corporate and other expenses | 34,870 | 39,268 | 7,844 | 75,700 |
Income (loss) from operations, before tax | (11,964) | (14,825) | 53,181 | (4,110) |
Provision (benefit) for income taxes | (3,024) | (5,911) | 6,320 | (1,639) |
Net income (loss) | $ (8,940) | $ (8,914) | $ 46,861 | $ (2,471) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - 6 months ended Jun. 30, 2016 - USD ($) | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Deficit | Total |
Balance at Dec. 31, 2015 | $ 90,000 | $ 128,331,000 | $ (152,443,000) | $ (24,022,000) | |
Balance (in shares) at Dec. 31, 2015 | 8,981,536 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Reacquired stock | $ (50) | (50,000) | |||
Reacquired stock (in shares) | (1,000,000) | ||||
Stock-based compensation expense | 1,270,000 | 1,270,000 | |||
Net income (loss) | 46,861,000 | 46,861,000 | |||
Balance at Jun. 30, 2016 | $ 90,000 | $ (50) | $ 129,601,000 | $ (105,582,000) | $ 24,059,000 |
Balance (in shares) at Jun. 30, 2016 | 7,981,536 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities | ||
Net income (loss) | $ 46,861 | $ (2,471) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 56,747 | 91,826 |
Loss on disposal of assets | 1,283 | 354 |
Gain on debt extinguishment | (62,852) | |
Loss on sale of subsidiary | 1,569 | |
Depreciation | 7,288 | 6,582 |
Amortization of note discount and deferred debt issuance costs | 1,280 | 1,471 |
Amortization of intangibles | 417 | 1,111 |
Deferred (benefit from) income taxes | 3,741 | (748) |
Change in fair value of stock repurchase obligation | 1,010 | |
Stock-based compensation | 1,270 | 372 |
Changes in assets and liabilities: | ||
Short term investments | 715 | |
Card related pre-funding and receivables | (28) | 59 |
Restricted cash | 160 | (896) |
Other assets | (2,581) | 1,408 |
Deferred revenue | 9,505 | (1,419) |
Accrued interest | (1,779) | 10 |
Money orders payable | (4,127) | 3,384 |
Lease termination payable | 78 | |
Accounts payable and accrued expenses | (5,273) | (4,776) |
Net cash provided by operating activities | 54,274 | 97,277 |
Cash flows from investing activities | ||
Net receivables originated | (42,058) | (81,480) |
Net acquired assets, net of cash | (296) | (810) |
Purchase of leasehold improvements and equipment | (4,904) | (11,624) |
Net cash used in investing activities | (47,258) | (93,914) |
Cash flows from financing activities | ||
Repurchase of senior secured notes | (36,437) | |
Proceeds from subsidiary note | 13,765 | 2,400 |
Payments on subsidiary note | (192) | (200) |
Payments on related party Florida seller notes | (1,500) | |
Payments on capital lease obligations | (717) | (998) |
Proceeds on lines of credit | 6,750 | 31,700 |
Debt issuance costs | 622 | (1,084) |
Net cash provided by (used in) financing activities | (16,209) | 30,318 |
Net increase (decrease) in cash and cash equivalents | (9,193) | 33,681 |
Cash and cash equivalents: | ||
Beginning | 98,941 | 77,734 |
Ending | $ 89,748 | $ 111,415 |
Ownership, Nature of Business,
Ownership, Nature of Business, and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Ownership, Nature of Business, and Significant Accounting Policies | |
Ownership, Nature of Business, and Significant Accounting Policies | Note 1. Ownership, Nature of Business, and Significant Accounting Policies Nature of business: Community Choice Financial Inc. (together with its consolidated subsidiaries, “CCFI” or “the Company”) was formed on April 6, 2011, under the laws of the State of Ohio. As of June 30, 2016, the Company owned and operated 466 retail locations in 15 states and is licensed to deliver similar financial services over the internet in 31 states. Through its network of retail locations and over the internet, the Company provides customers a variety of financial products and services, including secured and unsecured, short and medium-term consumer loans, check cashing, prepaid debit cards, and other services that address the specific needs of its individual customers. A summary of the Company’s significant accounting policies follows: Basis of presentation: The accompanying interim unaudited consolidated financial statements of the Company have been prepared in accordance with the instructions to Form 10-Q and accounting principles generally accepted in the United States (“GAAP”) for interim financial information. They do not include all information and footnotes required by GAAP for complete financial statements. Although management believes that the disclosures are adequate to prevent the information from being misleading, the interim unaudited consolidated financial statements should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2015, included in the Company’s Annual Report on Form 10-K filed with the Securities & Exchange Commission on March 30, 2016. In the opinion of the Company’s management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair statement of the Company’s financial condition, have been included. The results for any interim period are not necessarily indicative of results to be expected for the year ending December 31, 2016. Basis of consolidation: The accompanying consolidated financial statements include the accounts of CCFI. All significant intercompany accounts and transactions have been eliminated in consolidation. Reclassifications: Certain amounts reported in the consolidated financial statements for the three months and six months ended June 30, 2015, have been reclassified to conform to classifications presented in the consolidated financial statements for the three months and six months ended June 30, 2016, without affecting the previously reported net income or stockholders’ equity. Business segments: FASB Accounting Standards Codification (“ASC”) Topic 280 Segment Reporting requires that a public enterprise report a measure of segment profit or loss, certain specific revenue and expense items, segment assets, information about the way operating segments were determined and other items. The Company reports operating segments in accordance with FASB ASC Topic 280. Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in determining how to allocate resources and assess performance. The Company operates in two segments: Retail financial services and Internet financial services. Revenue recognition: Transactions include loans, credit service fees, check cashing, bill payment, money transfer, money order sales, and other miscellaneous products and services. The full amount of the check cashing fee is recognized as revenue at the time of the transaction. Fees and direct costs incurred for the origination of loans are deferred and amortized over the loan period using the interest method. The Company acts in an agency capacity regarding bill payment services, money transfers, card products, and money orders offered and sold at its branches. The Company records the net amount retained as revenue because the supplier is the primary obligor in the arrangement, the amount earned by the Company is fixed, and the supplier is determined to have the ultimate credit risk. Revenue on loans determined to be troubled debt restructurings are recognized at the impaired loans’ original interest rates until the impaired loans are charged off or paid by the customer. Credit service organization (“CSO”) fees are recognized over the arranged credit service period. Finance receivables: Finance receivables consist of short term and medium-term consumer loans. Short-term consumer loans can be unsecured or secured with a maturity up to ninety days. Unsecured short-term loan products typically range in principal from $100 to $1,000, with a maturity between fourteen and thirty days, and include a written agreement to defer the presentment of the customer’s personal check or preauthorized debit for the aggregate amount of the advance plus fees. This form of lending is based on applicable laws and regulations, which vary by state. State statutes vary from charging fees of 15% to 20%, to charging interest at 25% per annum plus origination fees. The customers repay the cash advance by making cash payments or allowing a check or preauthorized debit to be presented. Secured consumer loans with a maturity of ninety days or less are included in this category and represented 17.8% and 17.7% of short-term consumer loans at June 30, 2016 and December 31, 2015, respectively. Medium-term consumer loans can be unsecured or secured with a maturity greater than ninety days up to thirty-six months. Unsecured medium-term products typically range from $100 to $5,000, and are evidenced by a promissory note with a maturity between three and thirty-six months. These consumer loans vary in structure depending upon the applicable laws and regulations where they are offered. The medium-term consumer loans are payable in installments or provide for a line of credit with periodic payments. Secured consumer loans with a maturity greater than ninety days are included in this category and represented 13.2% and 13.7% of medium-term consumer loans at June 30, 2016, and December 31, 2015, respectively. Allowance for loan losses: Provisions for loan losses are charged to income in amounts sufficient to maintain an adequate allowance for loan losses and an adequate accrual for losses related to guaranteed loans processed for third-party lenders. The factors used in assessing the overall adequacy of the allowance for loan losses, the accrual for losses related to guaranteed loans made by third-party lenders and the resulting provision for loan losses include an evaluation by product by market based on historical loan loss experience and delinquency of certain medium-term consumer loans. The Company evaluates various qualitative factors that may or may not affect the computed initial estimate of the allowance for loan losses, by using internal valuation inputs including historical loan loss experience, delinquency, overall portfolio quality, and current economic conditions. For short term unsecured consumer loans, the Company’s policy is to charge off loans when they become past due. The Company’s policy dictates that, where a customer has provided a check or ACH authorization for presentment upon the maturity of a loan, if the customer has not paid off the loan by the due date, the Company will deposit the customer’s check or draft the customer’s bank account for the amount due. If the check or draft is returned as unpaid, all accrued fees and outstanding principal are charged-off as uncollectible. For short term secured loans, the Company’s policy requires that balances be charged off when accounts are thirty days past due. For medium term secured and unsecured consumer loans which have a term of one year or less, the Company’s policy requires that balances be charged off when accounts are sixty days past due. For medium term secured and unsecured consumer loans which have an initial maturity of greater than one year, the Company’s policy requires that balances be charged off when accounts are ninety-one days past due. In certain markets, the Company reduced interest rates and favorably changed payment terms for medium-term consumer loans to assist borrowers in avoiding default and to mitigate risk of loss. These reduced interest rates and changed payment terms were limited to loans that the Company believed the customer had the ability to pay in the foreseeable future. These loans were accounted for as troubled debt restructurings and represent the only loans considered impaired due to the nature of the Company’s charge-off policy. Recoveries of amounts previously charged off are recorded to the allowance for loan losses or the accrual for third-party losses in the period in which they are received. Change in accounting principle: As of January 1, 2016, the Company adopted new guidance related to the presentation of deferred debt issuance costs in its balance sheet. Under the new guidance, deferred debt issuance costs are reported as a direct deduction from the carrying amount of the related debt. Previously, deferred debt issuance costs were presented as a noncurrent asset. The new presentation requirements have been applied retrospectively and amounts reported in the December 2015 consolidated balance sheet have been adjusted to apply the new guidance. The change in accounting principle resulted in a reduction of noncurrent assets of $6,828, an increase in current assets of $13, a reduction of current liabilities of $3, and a reduction of noncurrent liabilities of $6,812 in the December 31, 2015 balance sheet. Fair value of financial instruments: Financial assets and liabilities measured at fair value are grouped in three levels. The levels prioritize the inputs used to measure the fair value of the assets or liabilities. These levels are: · Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities. · Level 2—Inputs other than quoted prices that are observable for assets and liabilities, either directly or indirectly. These inputs include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are less attractive. · Level 3—Unobservable inputs for assets and liabilities reflecting the reporting entity’s own assumptions. The Company follows the provisions of ASC 820-10, which applies to all assets and liabilities that are being measured and reported on a fair value basis. ASC 820-10 requires a disclosure that establishes a framework for measuring fair value within GAAP and expands the disclosure about fair value measurements. This standard enables a reader of consolidated financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. The standard requires that assets and liabilities carried at fair value be classified and disclosed in one of the three categories. In determining the appropriate levels, the Company performed a detailed analysis of the assets and liabilities that are subject to ASC 820-10. At each reporting period, all assets and liabilities for which the fair value measurement is based on significant unobservable inputs are classified as Level 3. The Company’s financial instruments consist primarily of cash and cash equivalents, finance receivables, short-term investments, and lines of credit. For all such instruments, other than senior secured notes, notes payable, and stock repurchase obligation at June 30, 2016, and December 31, 2015, the carrying amounts in the consolidated financial statements approximate their fair values. Finance receivables are short term in nature and are originated at prevailing market rates and lines of credit bear interest at current market rates. The fair value of finance receivables at June 30, 2016 and December 31, 2015 approximates carrying value and is measured using internal valuation inputs including historical loan loss experience, delinquency, overall portfolio quality, and current economic conditions. The fair value of the Company’s 10.75% senior secured notes due 2019 (the “2019 notes”) and the 12.75% senior secured notes due 2020 (the “2020 notes”) were determined based on market yield on trades of the 2019 notes at the end of the recent reporting period. The fair value of related party Florida seller notes payable was determined based on applicable market yields of similar debt and the fair value of the stock repurchase obligation was determined based on a probability-adjusted Black Scholes option valuation model. June 30, 2016 Carrying Amount Fair Value Level Financial assets: Cash and cash equivalents $ $ 1 Restricted cash 1 Finance receivables 3 Short-term investments, certificates of deposit 2 Financial liabilities: 10.75% Senior secured notes 1 12.75% Senior secured notes 2 Subsidiary Note payable 2 Lines of Credit 2 December 31, 2015 Carrying Amount Fair Value Level Financial assets: Cash and cash equivalents $ $ 1 Restricted cash 1 Finance receivables 3 Short-term investments, certificates of deposit 2 Financial liabilities: 10.75% Senior secured notes 1 12.75% Senior secured notes 2 Related party Florida seller notes 2 Subsidiary Note payable 2 Lines of Credit 2 Stock repurchase obligation 2 Treasury Stock: Treasury stock is reported at cost and consists of one million common shares at June 30, 2016. There were no shares held in treasury at December 31, 2015. Subsequent events: The Company has evaluated its subsequent events (events occurring after June 30, 2016) through the issuance date of August 1 2 , 2016. |
Finance Receivables, Credit Qua
Finance Receivables, Credit Quality Information and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2016 | |
Finance Receivables, Credit Quality Information and Allowance for Loan Losses | |
Finance Receivables, Credit Quality Information and Allowance for Loan Losses | Note 2. Finance Receivables, Credit Quality Information and Allowance for Loan Losses Finance receivables representing amounts due from customers for advances at June 30, 2016, and December 31, 2015, consisted of the following: June 30, December 31, 2016 2015 Short-term consumer loans $ $ Medium-term consumer loans Gross receivables Unearned advance fees, net of deferred loan origination costs ) ) Finance receivables before allowance for loan losses Allowance for loan losses ) ) Finance receivables, net $ $ Finance receivables, net Current portion $ $ Non-current portion Total finance receivables, net $ $ Changes in the allowance for loan losses by product type for the three months ended June 30, 2016, are as follows: Allowance as Balance Balance Receivables a percentage 4/1/2016 Provision Charge-Offs Recoveries 6/30/2016 6/30/2016 of receivable Short-term consumer loans $ $ $ ) $ $ $ % Medium-term consumer loans ) % $ $ $ ) $ $ $ % The provision for loan losses for the three months ended June 30, 2016, also includes losses from returned items from check cashing of $1,412. The provision for short-term consumer loans of $10,968 is net of debt sales of $527 for the three months ended June 30, 2016. The provision for medium-term consumer loans of $10,357 is net of debt sales of $1,850 for the three months ended June 30, 2016. The Company evaluates all short-term and medium-term consumer loans collectively for impairment, except for medium-term loans that have been modified and classified as troubled debt restructurings, which are individually evaluated for impairment. In certain markets, the Company reduced interest rates and favorably changed payment terms for medium-term consumer loans to assist borrowers in avoiding default and to mitigate risk of loss. The provision and subsequent charge off related to these loans totaled $33 and is included in the provision for medium-term consumer loans for the three months ended June 30, 2016. For these loans evaluated for impairment, there were $391 of payment defaults during the three months ended June 30, 2016. The troubled debt restructurings during the three months ended June 30, 2016 are subject to an allowance of $18 with a net carrying value of $47 at June 30, 2016. Changes in the allowance for loan losses by product type for the six months ended June 30, 2016, are as follows: Allowance as Balance Balance Receivables a percentage 1/1/2016 Provision Charge-Offs Recoveries 6/30/2016 6/30/2016 of receivable Short-term consumer loans $ $ $ ) $ $ $ % Medium-term consumer loans ) % $ $ $ ) $ $ $ % The provision for loan losses for the six months ended June 30, 2016, also includes losses from returned items from check cashing of $2,977. The provision for short-term consumer loans of $18,699 is net of debt sales of $944 for the six months ended June 30, 2016. The provision for medium-term consumer loans of $22,335 is net of debt sales of $1,850 for the six months ended June 30, 2016. The Company evaluates all short-term and medium-term consumer loans collectively for impairment, except for medium-term loans that have been modified and classified as troubled debt restructurings, which are individually evaluated for impairment. In certain markets, the Company reduced interest rates and favorably changed payment terms for medium-term consumer loans to assist borrowers in avoiding default and to mitigate risk of loss. The provision and subsequent charge off related to these loans totaled $389 and is included in the provision for medium-term consumer loans for the six months ended June 30, 2016. For these loans evaluated for impairment, there were $768 of payment defaults during the six months ended June 30, 2016. The troubled debt restructurings during the six months ended June 30, 2016 are subject to an allowance of $114 with a net carrying value of $335 at June 30, 2016. Changes in the allowance for loan losses by product type for the three months ended June 30, 2015 are as follows: Allowance as Balance Balance Receivables a percentage 4/1/2015 Provision Charge-Offs Recoveries 6/30/2015 6/30/2015 of receivable Short-term consumer loans $ $ $ ) $ $ $ % Medium-term consumer loans ) % $ $ $ ) $ $ $ % The provision for loan losses for the three months ended June 30, 2015, also includes losses from returned items from check cashing of $2,283. The Company evaluates all short-term and medium-term consumer loans collectively for impairment, except for medium-term loans that have been modified and classified as troubled debt restructurings, which are individually evaluated for impairment. In certain markets, the Company reduced interest rates and favorably changed payment terms for medium-term consumer loans to assist borrowers in avoiding default and to mitigate risk of loss. The provision and subsequent charge off related to these loans totaled $163 and is included in the provision for medium-term consumer loans for the three months ended June 30, 2015. For these loans evaluated for impairment, there were $502 of payment defaults during the three months ended June 30, 2015. The troubled debt restructurings during the three months ended June 30, 2015 are subject to an allowance of $68 with a net carrying value of $182 at June 30, 2015. Changes in the allowance for loan losses by product type for the six months ended June 30, 2015 are as follows: Allowance as Balance Balance Receivables a percentage 1/1/2015 Provision Charge-Offs Recoveries 6/30/2015 6/30/2015 of receivable Short-term consumer loans $ $ $ ) $ $ $ % Medium-term consumer loans ) % $ $ $ ) $ $ $ % The provision for loan losses for the six months ended June 30, 2015, also includes losses from returned items from check cashing of $4,539. The provision for short-term consumer loans of $30,277 is net of debt sales of $631 for the six months ended June 30, 2015. The Company evaluates all short-term and medium-term consumer loans collectively for impairment, except for medium-term loans that have been modified and classified as troubled debt restructurings, which are individually evaluated for impairment. In certain markets, the Company reduced interest rates and favorably changed payment terms for medium-term consumer loans to assist borrowers in avoiding default and to mitigate risk of loss. The provision and subsequent charge off related to these loans totaled $667 and is included in the provision for medium-term consumer loans for the six months ended June 30, 2015. For these loans evaluated for impairment, there were $1,754 of payment defaults during the six months ended June 30, 2015. The troubled debt restructurings during the six months ended June 30, 2015 are subject to an allowance of $270 with a net carrying value of $652 at June 30, 2015. The Company has subsidiaries that facilitate third party lender loans. Changes in the accrual for third-party lender losses for the three months and six months ended June 30, 2016, and 2015 were as follows: Three months ended Six months ended June 30, June 30, 2016 2015 2016 2015 Balance, beginning of period $ $ $ $ Provision for loan losses Charge-offs, net ) ) ) ) Balance, end of period $ $ $ $ Total gross finance receivables for which the Company has recorded an accrual for third-party lender losses totaled $36,773 and $40,552 at June 30, 2016, and December 31, 2015, respectively, and the corresponding guaranteed consumer loans are disclosed as an off-balance sheet arrangement. The provision for third party lender losses of $7,535 and $12,736 for the three months and six months ended June 30, 2016 is net of debt sales of $109 and $460, respectively. The Company considers the near term repayment performance of finance receivables as its primary credit quality indicator. The Company performs credit checks through consumer reporting agencies on certain borrowers. If a third-party lender provides the advance, the applicable third-party lender decides whether to approve the loan and establishes all of the underwriting criteria and terms, conditions, and features of the customer’s loan agreement. The aging of receivables at June 30, 2016, and December 31, 2015, are as follows: June 30, 2016 December 31, 2015 Current finance receivables $ % $ % Past due finance receivables (1 - 30 days) Short-term consumer loans % % Medium-term consumer loans % % Total past due finance receivables (1 - 30 days) % % Past due finance receivables (31 - 60 days) Medium-term consumer loans % % Total past due finance receivables (31 - 60 days) % % Past due finance receivables (61 - 90 days) Medium-term consumer loans % % Total past due finance receivables (61 - 90 days) % % Total delinquent % % $ % $ % |
Related Party Transactions and
Related Party Transactions and Balances | 6 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions and Balances | |
Related Party Transactions and Balances | Note 3. Related Party Transactions and Balances Certain senior members of management have an interest in a vendor from which the Company purchases telecommunications services. Hardware and services were provided to the Company by the vendor at a reduced rate for the three months ended June 30, 2016 and 2015 were $958 and $233, and for the six months ended June 30, 2016 and 2015, were $1,746 and $373, respectively. If the Company were to source the services from another vendor, the overall cost of the services would likely increase. The Company has a consulting agreement with a related party for information technology consulting services. Consulting services provided to the Company for the three months ended June 30, 2016 and 2015, were $128 and $66 and for the six months ended June 30, 2016 and 2015, were $266 and $147, respectively. There were no additional significant new, or changes to existing, related party transactions during the six months ended June 30, 2016. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Other Intangible Assets | |
Goodwill and Other Intangible Assets | Note 4. Goodwill and Other Intangible Assets The Company performed a goodwill impairment test for the Retail services segment as required when a portion of a segment is sold. See the Sale of Subsidiary described in Note 10. The test resulted in no impairment of goodwill as of February 1, 2016. Intangible amortization expense for the three months ended June 30, 2016, and 2015 were $146 and $519, respectively, and for the six months ended June 30, 2016 and 2015 were $417 and $1,111, respectively. There were no additional significant changes to goodwill and other intangible assets during the six months ended June 30, 2016. |
Pledged Assets and Debt
Pledged Assets and Debt | 6 Months Ended |
Jun. 30, 2016 | |
Pledged Assets and Debt | |
Pledged Assets and Debt | Note 5. Pledged Assets and Debt Lines of credit at June 30, 2016 and December 31, 2015, consisted of the following: June 30, 2016 December 31, 2015 Deferred Deferred Issuance Net Issuance Net Principal Costs Principal Principal Costs Principal $7,000 Revolving credit, secured, prime plus 1.00% with 5.00% floor, due July 2017, collateralized by all of Insight Capital, LLC’s assets $ $ $ $ — $ — $ — $31,700 Revolving credit, secured, interest rate as defined below, due March 2017, collateralized by all Guarantor Company assets Less current maturities — — — Long-term portion $ $ $ $ $ $ The deferred issuance costs of $13 were greater than the carrying value of the $7,000 Revolving credit facility as of December 31, 2015 and is included in Other Current Assets on the Consolidated Balance Sheet. The interest rate is one-month LIBOR plus 14% with a 15% floor, and there is a make-whole payment if the revolving principal balance falls below 85% of the aggregate commitment on or before September 27, 2016. The 1-month LIBOR was 0.47% and 0.24% at June 30, 2016 and December 31, 2015, respectively, and the prime rate was 3.5% and 3.25% at June 30, 2016 and December 31, 2015, respectively. Senior secured notes payable at June 30, 2016, and December 31, 2015, consisted of the following: June 30, 2016 December 31, 2015 Deferred Deferred Issuance Net Issuance Net Principal Costs Principal Principal Costs Principal $395,000 Senior Note payable, 10.75 %, collateralized by all Guarantor Company assets, semi-annual interest payments with principal due April 2019 $ $ $ $ $ $ $25,000 Senior Note payable, 12.75 %, collateralized by all Guarantor Company assets, semi-annual interest payments with principal due May 2020 Less current maturities — — — — — — Long-term portion $ $ $ $ $ $ For the six months ended June 30, 2016, the Company repurchased $99,289 of our senior secured notes resulting in a $62,852 gain on debt extinguishment. The Company may continue to repurchase its outstanding debt, including in the open market through privately negotiated transactions, by exercising redemption rights, or otherwise and any such repurchases may be material. Non-guarantor notes payable at June 30, 2016, and December 31, 2015, consisted of the following related party Florida seller notes: June 30, 2016 December 31, 2015 Deferred Deferred Issuance Net Issuance Principal Costs Principal Principal Costs Principal $8,000 non-guarantor term note, secured, 10.00%, quarterly interest payments with principal due August 2016 $ — $ — $ — $ $ — $ $9,000 non-guarantor term note, secured, 10.00%, quarterly principal and interest payments due August 2016 — — — — — — — — Less current maturities — — — — Long-term portion $ — $ — $ — $ — $ — $ — As part of the consideration of the Company’s sale of its Buckeye Check Cashing of Florida II LLC (“Florida II”) subsidiary on January 31, 2016, the Company was released from its liability for the two previously outstanding non-guarantor notes payable totaling $10,097. The notes were incurred in connection with the Company’s initial acquisition of this entity. Subsidiary notes payable at June 30, 2016, and December 31, 2015, consisted of the following: June 30, 2016 December 31, 2015 Deferred Deferred Issuance Net Issuance Net Principal Costs Principal Principal Costs Principal $40,000 Note, secured, 16.5%, collateralized by acquired loans, due January 2018 $ $ $ $ $ $ $8,100 Note, secured, 18.5%, collateralized by acquired loans, due December 2016 — — — $1,425 Term note, secured, 4.25%, collateralized by financed asset, due July 2019 $1,165 Term note, secured, 4.5%, collateralized by financed asset, due May 2021 — — — $489 Term note, secured, 8.50%, collateralized by financed asset, due July 2016, paid in full June 2016 — — — — Less current maturities Long-term portion $ $ $ $ $ $ The January 2018 subsidiary note was amended on June 1, 2016 to increase the maximum credit facility to $40,000 and extend the maturity date to January 2018. The December 2016 subsidiary note was amended on April 20, 2016 to increase the maximum credit facility to $8,100. The proceeds from the subsidiary note were used by a non-guarantor subsidiary for consumer loan acquisitions from guarantor subsidiaries. On May 24, 2016, a guarantor subsidiary of the Company entered in to a $1,165 term note for the acquisition of a share of an airplane. There were no additional significant changes to pledged assets or debt during the six months ended June 30, 2016. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Accounts Payable and Accrued Liabilities | |
Accounts Payable and Accrued Liabilities | Note 6. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities at June 30, 2016, and December 31, 2015, consisted of the following: June 30, December 31, 2016 2015 Accounts payable $ $ Accrued payroll and compensated absences Wire transfers payable Accrual for third-party losses Unearned CSO Fees Deferred rent Bill payment Lease termination Federal and state tax — Other $ $ |
Operating and Capital Lease Com
Operating and Capital Lease Commitments and Total Rental Expense | 6 Months Ended |
Jun. 30, 2016 | |
Operating and Capital Lease Commitments and Total Rental Expense | |
Operating and Capital Lease Commitments and Total Rental Expense | Note 7. Operating and Capital Lease Commitments and Total Rental Expense Rental expense, including common area maintenance and real estate tax expense, totaled $6,997 and $8,047 for the three months ended June 30, 2016, and 2015, and $14,051 and $15,956 for the six months ended June 30, 2016 and 2015, respectively. Lease termination expense totaled $1,101 and $826 for the three months and six months ended June 30, 2016, and 2015, respectively. There were no additional significant changes to operating and capital lease commitments during the six months ended June 30, 2016. |
Concentrations of Credit Risks
Concentrations of Credit Risks | 6 Months Ended |
Jun. 30, 2016 | |
Concentrations of Credit Risks | |
Concentrations of Credit Risks | Note 8. Concentrations of Credit Risks The Company’s portfolio of finance receivables is comprised of loan agreements with customers living in thirty-four states and consequently such customers’ ability to honor their contracts may be affected by economic conditions in those states. Additionally, the Company is subject to regulation by federal and state governments that affect the products and services provided by the Company. To the extent that laws and regulations are passed that affect the Company’s ability to offer loans or similar products in any of the states in which it operates, the Company’s financial position could be adversely affected. The following table summarizes the allocation of the portfolio balance by state at June 30, 2016 and December 31, 2015: June 30, 2016 December 31, 2015 Balance Percentage of Balance Percentage of State Outstanding Total Outstanding Outstanding Total Outstanding Alabama $ % $ % Arizona California Florida Virginia Other retail segment states Other internet segment states Total $ % $ % The other retail segment states are: Illinois, Indiana, Kansas, Kentucky, Michigan, Missouri, Ohio, Oregon, Tennessee, and Utah. The other internet segment states are: Alabama, Alaska, California, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Kansas, Louisiana, Maine, Minnesota, Mississippi, Missouri, Nevada, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin, and Wyoming. In the third quarter of 2015, the Company ceased all international operations in order to focus on its domestic operations. In certain markets, the Company offers a CSO product to assist consumers in obtaining credit with unaffiliated third-party lenders. Total gross finance receivables for which the Company has recorded an accrual for third-party lender losses totaled $36,773 and $40,552 at June 30, 2016, and December 31, 2015, respectively, and the corresponding guaranteed consumer loans are disclosed as an off-balance sheet arrangement. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Contingencies | |
Contingencies | Note 9. Contingencies From time-to-time the Company is a defendant in various lawsuits and administrative proceedings wherein certain amounts are claimed or violations of law or regulations are asserted. In the opinion of the Company’s management, these claims are without substantial merit and should not result in judgments which in the aggregate would have a material adverse effect on the Company’s financial statements. |
Sale of Subsidiary
Sale of Subsidiary | 6 Months Ended |
Jun. 30, 2016 | |
Sale of Subsidiary | |
Sale of Subsidiary | Note 10. Sale of Subsidiary On February 1, 2016, Buckeye Check Cashing of Florida, Inc., a wholly-owned subsidiary of CCFI, completed the sale of the membership interests of Florida II to Buckeye Check Cashing of Florida III, LLC (“Buyer”). Florida II most recently operated 43 stores in the South Florida market and was part of the Company’s Retail financial service operating segment. Florida II was an unrestricted subsidiary under the Company’s outstanding senior secured debt instruments. The consideration for the sale of Florida II included the following: · 1,000,000 shares of common stock of the Company held by Check Cashing USA Holdings, Inc., an affiliate of the Buyer, were assigned to the Company and recorded as treasury stock of $50. In addition, stock repurchase rights associated with the shares were cancelled, resulting in the elimination of a stock repurchase obligation of $3,130. · The Company was released from liability for two promissory notes totaling $10,112 that were incurred in connection with the Company’s original acquisition of Florida II (the “related party Florida seller notes”). In connection with the sale, the Company has also provided the Buyer with a short-term $6,000 line of credit, substantially all of which was drawn by the Buyer as part of, or concurrent with, the sale. As a result of uncertainties associated with repayment of the line of credit, the Company also recognized a $3,000 loan loss reserve that has been included in the loss on sale of Florida II. The Company recognized a pre-tax loss of $1,569 on the sale of Florida II, including the goodwill of $5,691 allocated to the Florida II transaction based on relative fair value. The difference between the pre-tax loss of $1,569 and tax loss of $24,062 on the sale of Florida II reflects the difference in GAAP and tax treatment of goodwill associated with an individual acquisition. |
Business Combination
Business Combination | 6 Months Ended |
Jun. 30, 2016 | |
Business Combination | |
Business Combination | Note 11. Business Combination On May 18, 2016, Buckeye Check Cashing of Florida, Inc. (“BCC Florida”), a wholly-owned subsidiary of CCFI, re-acquired five south Florida retail locations, previously owned by Florida II, from the subsequent purchaser of Florida II, as described in Note 10. BCC Florida agreed to accept the assets of the five retail locations in exchange for satisfying the Buyer’s remaining obligation of the line of credit from the sale of Florida II, which had a balance of $4,821. The transaction resulted in a pre-tax gain of $296 which is included with corporate expenses on the consolidated statement of operations. |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Jun. 30, 2016 | |
Stock Based Compensation | |
Stock Based Compensation | Note 12. Stock Based Compensation On May 16, 2016, the Company cancelled 1,270,106 options and re-issued 1,243,299 options with a per share exercise price of $2.25 with 1,233,499 options vesting immediately and 9,800 options vesting on specific dates defined in the award agreements. The following weighted average assumptions were used by the Company for awards re-issued during the six months ended June 30, 2016: Risk-free interest rate % Dividend yield % Expected volatility % Expected term (years) Weighted average fair value of options granted $ For the six months ended June 30, 2016 and 2015, the Company recorded stock-based compensation costs in the amount of $1,270 and $372, respectively. As of June 30, 2016 and December 31, 2015, unrecognized stock-based compensation costs to be recognized over future periods approximated $44 and $942, respectively. At June 30, 2016, the remaining unrecognized compensation expense is $44 for certain awards that vest over the requisite service period. The remaining compensation expense of $44 is expected to be recognized over a weighted-average period of 1.25 years. The total income tax benefit recognized in the income statement for the stock-based compensation arrangements was $508 and $149 for the six months ended June 30, 2016 and 2015, respectively. Stock option activity for the six months ended June 30, 2016 is as follows (these amounts have not been rounded in thousands): Weighted-Average Aggregate Exercise Price Weighted-Average Intrinsic Shares (actual per share price) Remaining Contractual Term Value (thousands) Outstanding at December 31, 2015 $ N/A Granted N/A Exercised — — — N/A Forfeited or expired — — N/A Outstanding at June 30, 2016 $ N/A Exercisable at June 30, 2016 $ $ — Vested or expected to vest at June 30, 2016 $ $ — As of June 30, 2016, there are 24,150 un-vested stock options with a weighted-average fair value at grant date of $0.89. |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2016 | |
Business Segments | |
Business Segments | Note 13. Business Segments The Company has elected to organize and report on its operations as two operating segments: Retail financial services and Internet financial services. The following tables present summarized financial information for the Company’s segments: As of and for the three months ended June 30, 2016 Retail % of Internet % of Unallocated % of Financial Services Revenue Financial Services Revenue (Income) Expenses Consolidated Revenue Total Assets $ $ $ — $ Goodwill — — Other Intangible Assets — Total Revenues $ % $ % $ — $ % Provision for Loan Losses % % — % Other Operating Expenses % % — % Operating Gross Profit % % — % Interest Expense, net % % — % Depreciation and Amortization % % — % Other Corporate Expenses (a) — — — — % Income (loss) from Operations, before tax % % ) ) )% (a) Represents expenses not associated directly with operations that are not allocated between reportable segments. Therefore, the Company has elected to disclose other corporate expenses as unallocated. There were no intersegment revenues for the three months ended June 30, 2016. As of and for the six months ended June 30, 2016 Retail % of Internet % of Unallocated % of Financial Services Revenue Financial Services Revenue (Income) Expenses Consolidated Revenue Total Assets $ $ $ — $ Goodwill — — Other Intangible Assets — Total Revenues $ % $ % $ — $ % Provision for Loan Losses % % — % Other Operating Expenses % % — % Operating Gross Profit % % — % Interest Expense, net % % — % Depreciation and Amortization % % — % Loss on Sale of Subsidiary % — — — % Gain on Debt Extinguishment (a) — — — — ) ) )% Other Corporate Expenses (a) — — — — % Income from Operations, before tax % % % (a) Represents income and expenses not associated directly with operations that are not allocated between reportable segments. Therefore, the Company has elected to disclose the gain on debt extinguishment and all other corporate expenses as unallocated. There were no intersegment revenues for the six months ended June 30, 2016. As of and for the three months ended June 30, 2015 Retail % of Internet % of Unallocated % of Financial Services Revenue Financial Services Revenue (Income) Expenses Consolidated Revenue Total Assets $ $ $ — $ Goodwill — — Other Intangible Assets — Total Revenues $ % $ % $ — $ % Provision for Loan Losses % % — % Other Operating Expenses % % — % Operating Gross Profit % % — % Interest Expense, net % % — % Depreciation and Amortization % % — % Market Value of Stock Repurchase Obligation % — — — % Other Corporate Expenses (a) — — — — % Income (loss) from Operations, before tax % ) )% ) ) )% (a) Represents expenses not associated directly with operations that are not allocated between reportable segments. Therefore, the Company has elected to disclose all other corporate expenses as unallocated. Intersegment revenues of $697 for the three months ended June 30, 2015, have been eliminated. As of and for the six months ended June 30, 2015 Retail % of Internet % of Unallocated % of Financial Services Revenue Financial Services Revenue (Income) Expenses Consolidated Revenue Total Assets $ $ $ — $ Goodwill — — Other Intangible Assets — Total Revenues $ % $ % $ — $ % Provision for Loan Losses % % — % Other Operating Expenses % % — % Operating Gross Profit % % — % Interest Expense, net % % — % Depreciation and Amortization % % — % Market Value of Stock Repurchase Obligation % — — — % Other Corporate Expenses (a) — — — — % Income (loss) from Operations, before tax % % ) ) )% (a) Represents expenses not associated directly with operations that are not allocated between reportable segments. Therefore, the Company has elected to disclose all other corporate expenses as unallocated. Intersegment revenues of $1,237 for the six months ended June 30, 2015, have been eliminated. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Taxes | |
Income Taxes | Note 14. Income Taxes The Company files a consolidated federal income tax return. The Company files consolidated or separate state income tax returns as permitted by the individual states in which it operates. The differences between our effective rate and U.S. statutory rate is primarily due to non-deductible expenses, state taxes and changes in valuation allowance. The Company had unrecognized tax benefits of $191 at June 30, 2016 and $-0- at December 31, 2015. At June 30, 2016, the Company had gross deferred tax assets of $32,280 and a net deferred tax asset of $1,424. At December 31, 2015, the Company had gross deferred tax assets of $46,441 and a net deferred tax asset of $1,565. A valuation allowance of $30,856 and $41,276 was recognized at June 30, 2016 and December 31, 2015, respectively, to reduce the deferred tax assets to the amount that was more likely than not expected to be realized. In evaluating whether a valuation allowance was needed for the deferred tax assets, the Company considered the ability to carry net operating losses back to prior periods, reversing taxable temporary differences, and estimates of future taxable income. There have been no credits or net operating losses that have expired. In addition, the Company’s projections of future taxable income are expected to result in the realization of the remaining deferred tax assets. The projections were evaluated in light of past operating results and considered the risks associated with future taxable income related to macroeconomic conditions in the markets in which the Company operates, regulatory developments and cost containment. The Company will continue to evaluate the need for a valuation allowance against deferred tax assets in future periods and will adjust the allowance as necessary if it determines that it is not more likely than not that some or all of the deferred tax assets are expected to be realized. The Company’s 2013 and 2014 federal income tax returns are currently under examination by the Internal Revenue Service (“IRS”). It expects the audit of its 2013 and 2014 federal income tax returns to be completed within the next three months. It is reasonably possible that the amount of the unrecognized tax benefits could change during that time; however, the Company does not anticipate that the liability will be materially different than the amount currently reserved. |
Transactions with Variable Inte
Transactions with Variable Interest Entities | 6 Months Ended |
Jun. 30, 2016 | |
Transactions with Variable Interest Entities | |
Transactions with Variable Interest Entities | Note 15. Transactions with Variable Interest Entities The Company has limited agency agreements with unaffiliated third-party lenders. The agreements govern the terms by which the Company refers customers to that lender, on a non-exclusive basis, for a possible extension of credit, processes loan applications and commits to reimburse the lender for any loans or related fees that were not collected from such customers. As of June 30, 2016, and December 31, 2015, the outstanding amount of active consumer loans guaranteed by the Company, which represents the Company’s maximum exposure, was $36,773 and $40,552, respectively. This obligation is recorded as a current liability on the Company’s consolidated balance sheet. The accrual for third party lender losses related to these obligations totaled $3,274 and $2,610 as of June 30, 2016 and December 31, 2015, respectively. The Company has determined that the lenders are VIEs but that the Company is not the primary beneficiary of the VIEs. Therefore, the Company has not consolidated either lender. The Company provided a $6,000 temporary line of credit to the Buyer of Florida II as part of the consideration. The line of credit is a form of subordinated financial support that represents a variable interest in Florida II. The Company did not have the power to direct of the activities that most significantly impact the performance of Florida II, therefore, the Company has determined that it is not the primary beneficiary of Florida II and did not consolidate Florida II. The remaining obligation was satisfied in May 2016 as part of the transaction described in Note 11. |
Supplemental Guarantor Informat
Supplemental Guarantor Information | 6 Months Ended |
Jun. 30, 2016 | |
Supplemental Guarantor Information | |
Supplemental Guarantor Information | Note 16. Supplemental Guarantor Information The 2019 notes and the 2020 notes contain various covenants that, subject to certain exceptions defined in the indentures governing the notes (the “Indentures”), limit the Company’s ability to, among other things, engage in certain transactions with affiliates, pay dividends or distributions, redeem or repurchase capital stock, incur or assume liens or additional debt, and consolidate or merge with or into another entity or sell substantially all of its assets. The Company has optional redemption features on the 2019 notes and the 2020 notes prior to their maturity which, depending on the date of the redemption, would require premiums to be paid in addition to all principal and interest due. The 2019 notes and 2020 notes are guaranteed by all of the Company’s guarantor subsidiaries existing as of April 29, 2011 (the date the Company issued the 2019 notes) and any subsequent guarantor subsidiaries that guarantee the Company’s indebtedness or the indebtedness of any other subsidiary guarantor (the “Subsidiary Guarantors”), in accordance with the Indentures. The Company is a holding company and has no independent assets or operations of its own. The guarantees under the 2019 notes and 2020 notes are full, unconditional, and joint and several. There are no restrictions on the ability of the Company or any of the Subsidiary Guarantors to obtain funds from its restricted subsidiaries by dividend or loan, except for net worth requirements of certain states in which the Company operates and certain requirements relating to the Company’s Alabama subsidiary, Insight Capital, LLC, as a result of its separate revolving credit facility (the “Alabama Revolving Credit Agreement”). Certain Subsidiary Guarantors are required to maintain net worth ranging from $5 to $1,000. The total net worth requirements of these Subsidiary Guarantors is $6.75 million. The Indentures contain certain affirmative and negative covenants applicable to the Company and its Subsidiary Guarantors, including restrictions on their ability to incur additional indebtedness, consummate certain asset sales, make investments in certain entities that create liens on their assets, enter into certain affiliate transactions and make certain restricted payments, including restrictions on the Company’s ability to pay dividends on, or repurchase, its common stock. As long as the $7,000 Alabama Revolving Credit Agreement remains outstanding, the guarantee provided by Insight Capital, LLC is secured on a second-priority basis by the shared Alabama collateral held by such subsidiary. As a result, any obligations under the Alabama Revolving Credit Agreement must first be satisfied before the Alabama subsidiary can make any payments with respect to the 2019 notes and 2020 notes. |
Supplemental Condensed Consolid
Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information | 6 Months Ended |
Jun. 30, 2016 | |
Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information | |
Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information | Note 17. Supplemental Condensed Consolidating Guarantor and Non- Guarantor Financial Information The following presents the condensed consolidating guarantor financial information as of June 30, 2016, and December 31, 2015, and for the six months ended June 30, 2016, and 2015, for the subsidiaries of the Company that serve as guarantors of the 2019 notes and the 2020 notes, and for the subsidiaries that do not serve as a guarantor. The non-guarantor subsidiaries are Florida II, CCFI Funding LLC, CCFI Funding II LLC, Direct Financial Solutions of UK Limited and its subsidiary Cash Central UK Limited, Direct Financial Solutions of Canada, Inc and its subsidiaries DFS-CC Financial Services LLC, DFS-CC Financial Services (Calgary) LLC and DFS-CC Financial Services (Toronto) LLC, and Direct Financial Solutions of Australia Pty Ltd and its subsidiary Cash Central of Australia Pty Ltd. Each of the Company’s guarantor subsidiaries are 100% owned by the Company or its subsidiaries, and all guarantees are full, unconditional, and joint and several. Of the entities under “Non-Guarantor Subsidiaries” in the tables below, Florida II, CCFI Funding, and CCFI Funding II are “Unrestricted Subsidiaries” as defined in the Indentures. Buckeye Check Cashing of Florida II, LLC was acquired on July 31, 2012 and was sold on February 1, 2016, CCFI Funding was created on December 20, 2013, and CCFI Funding II was established on September 19, 2014. Refer to the “Non-Guarantor Subsidiaries” columns in the following condensed consolidating schedules. Florida II is not included in the June 30, 2016 Balance Sheet as the entity was sold on February 1, 2016, and is included in the Statement of Operations for only the month ended January 31, 2016. The remainder of the entities included under “non-Guarantor Subsidiaries” in the tables below are “Restricted Subsidiaries” as defined in the Indentures governing the 2019 notes and the 2020 notes and, for the periods specified, did not have material assets, liabilities, revenue or expenses. The supplemental guarantor information required by GAAP distinguishes between non-guarantor and guarantor financial information based on the legal entities and the guarantor requirements contained in the Indentures governing the 2019 notes, 2020 notes, and the Company’s revolving credit agreement. ASC 350-20, Intangibles — Goodwill and Other, however, requires that goodwill be allocated to reporting units irrespective of which legal entity the goodwill is associated with. When a portion of a reporting unit is sold, goodwill is allocated to the business disposed of based on the relative fair values of the business sold and the retained portion of the reporting unit. The sale of Florida II results in a reduction of goodwill of $5,691 for the Company’s Retail services segment, with the remaining goodwill of approximately $25,344 allocated to Florida II’s guarantor parent. The book loss on the sale of Florida II is $1,569 whereas the tax loss on the sale of Florida II is $24,062. For tax purposes, all of the goodwill associated with the original Florida II acquisition is written off, which reflects the difference in the book and tax treatment of goodwill associated with an individual acquisition. Community Choice Financial Inc. and Subsidiaries Condensed Consolidating Balance Sheet (unaudited) June 30, 2016 Community Guarantor Non-Guarantor Choice Financial Subsidiaries Subsidiaries Eliminations Consolidated Assets Current Assets Cash and cash equivalents $ — $ $ $ — $ Restricted cash — — — Finance receivables, net — — Short-term investments, certificates of deposit — — — Card related pre-funding and receivables — — — Other current assets — ) Total current assets — ) Noncurrent Assets Investment in Subsidiaries — — ) — Finance receivables, net — — — Leasehold improvements and equipment, net — — — Goodwill — — — Other intangible assets — — — Security deposits — — — Deferred tax asset, net — — — Total assets $ $ $ $ ) $ Liabilities and Stockholders’ Equity Current Liabilities Accounts payable and accrued liabilities $ — $ $ ) $ ) $ Money orders payable — — — Accrued interest ) Current portion of capital lease obligation — — — Current portion of lines of credit — — Current portion of subsidiary note payable — — CCFI funding notes — — ) — Deferred revenue — — — Total current liabilities ) Noncurrent Liabilities Lease termination payable — — — Capital lease obligation — — — Lines of credit — — — Subsidiary note payable — — Senior secured notes — — — Deferred Revenue — — — Total liabilities ) Stockholders’ Equity ) Total liabilities and stockholders’ equity $ $ $ $ ) $ Community Choice Financial Inc. and Subsidiaries Condensed Consolidating Balance Sheet December 31, 2015 Community Guarantor Non-Guarantor Choice Financial Subsidiaries Subsidiaries Eliminations Consolidated Assets Current Assets Cash and cash equivalents $ — $ $ $ — $ Restricted cash — — — Finance receivables, net — — Short-term investments, certificates of deposit — — — Card related pre-funding and receivables — — — Other current assets — ) Total current assets — ) Noncurrent Assets Investment in Subsidiaries — ) — Finance receivables, net — — — Leasehold improvements and equipment, net — — Goodwill — — Other intangible assets — — Security deposits — — Deferred tax asset, net — — — Total assets $ $ $ $ ) $ Liabilities and Stockholders’ Equity Current Liabilities Accounts payable and accrued liabilities $ — $ $ $ ) $ Money orders payable — — Accrued interest ) Current portion of capital lease obligation — — Current portion of related party Florida seller notes — — — Current portion of subsidiary note payable — — — CCFI funding notes — — ) — Deferred revenue — — — Total current liabilities ) Noncurrent Liabilities Accrued liabilities — — — — — Lease termination payable — — Capital lease obligation — — Stock repurchase obligation — — — Lines of credit — — — Subsidiary note payable — — Senior secured notes — — — Total liabilities ) Stockholders’ Equity (Deficit) ) ) ) Total liabilities and stockholders’ equity $ $ $ $ ) $ Community Choice Financial Inc. and Subsidiaries Condensed Consolidating Statements of Income (unaudited) Six Months Ended June 30, 2016 Community Guarantor Non-Guarantor Choice Financial Subsidiaries Subsidiaries Eliminations Consolidated Revenues: Finance receivable fees $ — $ $ $ — $ Credit service fees — — — Check cashing fees — — Card fees — — Dividend — — ) — Other — ) Total revenues — ) Operating expenses: Salaries and benefits — — Provision for loan losses — — Occupancy — ) Advertising and marketing — — Lease termination — — Depreciation and amortization — — Other — — Total operating expenses — ) Operating gross profit — ) Corporate expenses — — Intercompany management fee — ) — — Depreciation and amortization — — Interest expense, net ) Interest expense allocation ) — — — Loss on sale of subsidiary — — — Gain on debt extinguishment ) — — — ) Total corporate and other expenses ) ) Income (loss) before income taxes ) ) Provision (benefit) for income taxes ) ) Net income (loss) $ $ ) $ $ ) $ Community Choice Financial Inc. and Subsidiaries Condensed Consolidating Statements of Income (unaudited) Six Months Ended June 30, 2015 Community Guarantor Non-Guarantor Choice Financial Subsidiaries Subsidiaries Eliminations Consolidated Revenues: Finance receivable fees $ — $ $ $ — $ Credit service fees — — — Check cashing fees — ) Card fees — — Dividend — — ) — Other — ) Total revenues — ) Operating expenses: Salaries and benefits — — Provision for loan losses — — Occupancy — — Advertising and marketing — ) Lease termination costs — — Depreciation and amortization — — Other — ) Total operating expenses — ) Operating gross profit — ) Corporate expenses — ) Intercompany management fee — ) — — Depreciation and amortization — — Interest expense, net ) Interest expense allocation ) — — Market value of stock repurchase obligation — — — Total corporate and other expenses — ) Income (loss) before income taxes — ) ) ) Provision (benefit) for income taxes — ) ) ) Net income (loss) $ — $ ) $ $ ) $ ) Community Choice Financial Inc. and Subsidiaries Condensed Consolidating Statement of Cash Flows (unaudited) Six Months Ended June 30, 2016 Community Guarantor Non-Guarantor Choice Financial Subsidiaries Subsidiaries Consolidated Net cash provided by operating activities $ $ $ $ Cash flows from investing activities Net receivables originated — ) ) ) Net acquired assets, net of cash — ) — ) Purchase of leasehold improvements and equipment — ) ) ) Net cash used in investing activities — ) ) ) Cash flows from financing activities Repurchase of senior secured notes ) — — ) Proceeds from subsidiary note — Payments on subsidiary note — ) — ) Proceeds on CCFI Funding Notes — ) — Payments on capital lease obligations — ) ) ) Proceeds on lines of credit — Debt issuance costs ) ) Net cash provided by (used in) financing activities ) ) Net increase in cash and cash equivalents — ) ) Cash and cash equivalents: Beginning — Ending $ — $ $ $ Community Choice Financial Inc. and Subsidiaries Condensed Consolidating Statement of Cash Flows (unaudited) Six Months Ended June 30, 2015 Community Guarantor Non-Guarantor Choice Financial Subsidiaries Subsidiaries Consolidated Net cash provided by operating activities $ $ $ $ Cash flows from investing activities Net receivables originated — ) ) ) Net acquired assets, net of cash — ) — ) Purchase of leasehold improvements and equipment — ) ) ) Net cash used in investing activities — ) ) ) Cash flows from financing activities Proceeds from subsidiary note — — Payments on subsidiary note — ) — ) Payments on related party Florida seller notes — — ) ) Payments on capital lease obligations, net — ) ) ) Proceeds from lines of credit — — Intercompany activities ) — — Debt issuance costs ) ) ) ) Net cash provided by (used in) financing activities ) Net increase in cash and cash equivalents — Cash and cash equivalents: Beginning — Ending $ — $ $ $ |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events | |
Subsequent Events | Note 18. Subsequent Events On June 30, 2016, Community Choice Financial Inc.’s indirect subsidiaries, Checksmart Financial Company, Cash Central of Mississippi, LLC, Buckeye Check Cashing of Alabama, LLC, Buckeye Check Cashing of Arizona, Inc., and Buckeye Check Cashing, Inc., entered into a swap transaction with QC Holdings, Inc., and QC Financial Services, Inc. (collectively “QC”). As part of the transaction, the Company acquired QC Financial Services of California, Inc., which operates sixty retail locations, and thirty-eight retail locations in Ohio, Mississippi, Arizona and Alabama from QC. These new stores will be accounted for by us as an acquisition. Also as part of the transaction, the Company sold to QC, Buckeye Check Cashing of Illinois LLC, Buckeye Check Cashing of Kansas LLC, Buckeye Title Loans of Kansas LLC, Buckeye Check Cashing of Missouri LLC, Buckeye Title Loans of Missouri LLC, Buckeye Check Cashing of Utah, Inc., and Buckeye Title Loans of Utah LLC, and the thirty-three retail locations operated by these entities. Other than the transfer of the equity interests and assets, the transaction did not provide for the payment or receipt of any other consideration by the Company or by QC, other than customary post-closing adjustments. In entering into the transaction, the Company and QC each concluded that the net value of the equity interests and other assets received by QC are substantially equal to the net value of the equity interests and other assets received by the Company. The carrying value of the assets acquired by QC from the Company was $28,035. The transaction was consummated effective at 12:01:00 a.m. on July 1, 2016. The fair market value of the assets acquired or disposed of has not yet been determined. Please see the Form 8-K filed with the Securities and Exchange Commission on July 7, 2016 for more details. |
Ownership, Nature of Business25
Ownership, Nature of Business, and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Ownership, Nature of Business, and Significant Accounting Policies | |
Basis of presentation | Basis of presentation: The accompanying interim unaudited consolidated financial statements of the Company have been prepared in accordance with the instructions to Form 10-Q and accounting principles generally accepted in the United States (“GAAP”) for interim financial information. They do not include all information and footnotes required by GAAP for complete financial statements. Although management believes that the disclosures are adequate to prevent the information from being misleading, the interim unaudited consolidated financial statements should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2015, included in the Company’s Annual Report on Form 10-K filed with the Securities & Exchange Commission on March 30, 2016. In the opinion of the Company’s management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair statement of the Company’s financial condition, have been included. The results for any interim period are not necessarily indicative of results to be expected for the year ending December 31, 2016. |
Basis of consolidation | Basis of consolidation: The accompanying consolidated financial statements include the accounts of CCFI. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Reclassifications | Reclassifications: Certain amounts reported in the consolidated financial statements for the three months and six months ended June 30, 2015, have been reclassified to conform to classifications presented in the consolidated financial statements for the three months and six months ended June 30, 2016, without affecting the previously reported net income or stockholders’ equity. |
Business segments | Business segments: FASB Accounting Standards Codification (“ASC”) Topic 280 Segment Reporting requires that a public enterprise report a measure of segment profit or loss, certain specific revenue and expense items, segment assets, information about the way operating segments were determined and other items. The Company reports operating segments in accordance with FASB ASC Topic 280. Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in determining how to allocate resources and assess performance. The Company operates in two segments: Retail financial services and Internet financial services. |
Revenue recognition | Revenue recognition: Transactions include loans, credit service fees, check cashing, bill payment, money transfer, money order sales, and other miscellaneous products and services. The full amount of the check cashing fee is recognized as revenue at the time of the transaction. Fees and direct costs incurred for the origination of loans are deferred and amortized over the loan period using the interest method. The Company acts in an agency capacity regarding bill payment services, money transfers, card products, and money orders offered and sold at its branches. The Company records the net amount retained as revenue because the supplier is the primary obligor in the arrangement, the amount earned by the Company is fixed, and the supplier is determined to have the ultimate credit risk. Revenue on loans determined to be troubled debt restructurings are recognized at the impaired loans’ original interest rates until the impaired loans are charged off or paid by the customer. Credit service organization (“CSO”) fees are recognized over the arranged credit service period. |
Finance receivables | Finance receivables: Finance receivables consist of short term and medium-term consumer loans. Short-term consumer loans can be unsecured or secured with a maturity up to ninety days. Unsecured short-term loan products typically range in principal from $100 to $1,000, with a maturity between fourteen and thirty days, and include a written agreement to defer the presentment of the customer’s personal check or preauthorized debit for the aggregate amount of the advance plus fees. This form of lending is based on applicable laws and regulations, which vary by state. State statutes vary from charging fees of 15% to 20%, to charging interest at 25% per annum plus origination fees. The customers repay the cash advance by making cash payments or allowing a check or preauthorized debit to be presented. Secured consumer loans with a maturity of ninety days or less are included in this category and represented 17.8% and 17.7% of short-term consumer loans at June 30, 2016 and December 31, 2015, respectively. Medium-term consumer loans can be unsecured or secured with a maturity greater than ninety days up to thirty-six months. Unsecured medium-term products typically range from $100 to $5,000, and are evidenced by a promissory note with a maturity between three and thirty-six months. These consumer loans vary in structure depending upon the applicable laws and regulations where they are offered. The medium-term consumer loans are payable in installments or provide for a line of credit with periodic payments. Secured consumer loans with a maturity greater than ninety days are included in this category and represented 13.2% and 13.7% of medium-term consumer loans at June 30, 2016, and December 31, 2015, respectively. |
Allowance for loan losses | Allowance for loan losses: Provisions for loan losses are charged to income in amounts sufficient to maintain an adequate allowance for loan losses and an adequate accrual for losses related to guaranteed loans processed for third-party lenders. The factors used in assessing the overall adequacy of the allowance for loan losses, the accrual for losses related to guaranteed loans made by third-party lenders and the resulting provision for loan losses include an evaluation by product by market based on historical loan loss experience and delinquency of certain medium-term consumer loans. The Company evaluates various qualitative factors that may or may not affect the computed initial estimate of the allowance for loan losses, by using internal valuation inputs including historical loan loss experience, delinquency, overall portfolio quality, and current economic conditions. For short term unsecured consumer loans, the Company’s policy is to charge off loans when they become past due. The Company’s policy dictates that, where a customer has provided a check or ACH authorization for presentment upon the maturity of a loan, if the customer has not paid off the loan by the due date, the Company will deposit the customer’s check or draft the customer’s bank account for the amount due. If the check or draft is returned as unpaid, all accrued fees and outstanding principal are charged-off as uncollectible. For short term secured loans, the Company’s policy requires that balances be charged off when accounts are thirty days past due. For medium term secured and unsecured consumer loans which have a term of one year or less, the Company’s policy requires that balances be charged off when accounts are sixty days past due. For medium term secured and unsecured consumer loans which have an initial maturity of greater than one year, the Company’s policy requires that balances be charged off when accounts are ninety-one days past due. In certain markets, the Company reduced interest rates and favorably changed payment terms for medium-term consumer loans to assist borrowers in avoiding default and to mitigate risk of loss. These reduced interest rates and changed payment terms were limited to loans that the Company believed the customer had the ability to pay in the foreseeable future. These loans were accounted for as troubled debt restructurings and represent the only loans considered impaired due to the nature of the Company’s charge-off policy. Recoveries of amounts previously charged off are recorded to the allowance for loan losses or the accrual for third-party losses in the period in which they are received. |
Change in accounting principle | Change in accounting principle: As of January 1, 2016, the Company adopted new guidance related to the presentation of deferred debt issuance costs in its balance sheet. Under the new guidance, deferred debt issuance costs are reported as a direct deduction from the carrying amount of the related debt. Previously, deferred debt issuance costs were presented as a noncurrent asset. The new presentation requirements have been applied retrospectively and amounts reported in the December 2015 consolidated balance sheet have been adjusted to apply the new guidance. The change in accounting principle resulted in a reduction of noncurrent assets of $6,828, an increase in current assets of $13, a reduction of current liabilities of $3, and a reduction of noncurrent liabilities of $6,812 in the December 31, 2015 balance sheet. |
Fair value of financial instruments | Fair value of financial instruments: Financial assets and liabilities measured at fair value are grouped in three levels. The levels prioritize the inputs used to measure the fair value of the assets or liabilities. These levels are: · Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities. · Level 2—Inputs other than quoted prices that are observable for assets and liabilities, either directly or indirectly. These inputs include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are less attractive. · Level 3—Unobservable inputs for assets and liabilities reflecting the reporting entity’s own assumptions. The Company follows the provisions of ASC 820-10, which applies to all assets and liabilities that are being measured and reported on a fair value basis. ASC 820-10 requires a disclosure that establishes a framework for measuring fair value within GAAP and expands the disclosure about fair value measurements. This standard enables a reader of consolidated financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. The standard requires that assets and liabilities carried at fair value be classified and disclosed in one of the three categories. In determining the appropriate levels, the Company performed a detailed analysis of the assets and liabilities that are subject to ASC 820-10. At each reporting period, all assets and liabilities for which the fair value measurement is based on significant unobservable inputs are classified as Level 3. The Company’s financial instruments consist primarily of cash and cash equivalents, finance receivables, short-term investments, and lines of credit. For all such instruments, other than senior secured notes, notes payable, and stock repurchase obligation at June 30, 2016, and December 31, 2015, the carrying amounts in the consolidated financial statements approximate their fair values. Finance receivables are short term in nature and are originated at prevailing market rates and lines of credit bear interest at current market rates. The fair value of finance receivables at June 30, 2016 and December 31, 2015 approximates carrying value and is measured using internal valuation inputs including historical loan loss experience, delinquency, overall portfolio quality, and current economic conditions. The fair value of the Company’s 10.75% senior secured notes due 2019 (the “2019 notes”) and the 12.75% senior secured notes due 2020 (the “2020 notes”) were determined based on market yield on trades of the 2019 notes at the end of the recent reporting period. The fair value of related party Florida seller notes payable was determined based on applicable market yields of similar debt and the fair value of the stock repurchase obligation was determined based on a probability-adjusted Black Scholes option valuation model. June 30, 2016 Carrying Amount Fair Value Level Financial assets: Cash and cash equivalents $ $ 1 Restricted cash 1 Finance receivables 3 Short-term investments, certificates of deposit 2 Financial liabilities: 10.75% Senior secured notes 1 12.75% Senior secured notes 2 Subsidiary Note payable 2 Lines of Credit 2 December 31, 2015 Carrying Amount Fair Value Level Financial assets: Cash and cash equivalents $ $ 1 Restricted cash 1 Finance receivables 3 Short-term investments, certificates of deposit 2 Financial liabilities: 10.75% Senior secured notes 1 12.75% Senior secured notes 2 Related party Florida seller notes 2 Subsidiary Note payable 2 Lines of Credit 2 Stock repurchase obligation 2 |
Treasury stock | Treasury Stock: Treasury stock is reported at cost and consists of one million common shares at June 30, 2016. There were no shares held in treasury at December 31, 2015. |
Subsequent events | Subsequent events: The Company has evaluated its subsequent events (events occurring after June 30, 2016) through the issuance date of August 12, 2016. |
Ownership, Nature of Business26
Ownership, Nature of Business, and Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Ownership, Nature of Business, and Significant Accounting Policies | |
Schedule of estimated fair values of financial instruments | June 30, 2016 Carrying Amount Fair Value Level Financial assets: Cash and cash equivalents $ $ 1 Restricted cash 1 Finance receivables 3 Short-term investments, certificates of deposit 2 Financial liabilities: 10.75% Senior secured notes 1 12.75% Senior secured notes 2 Subsidiary Note payable 2 Lines of Credit 2 December 31, 2015 Carrying Amount Fair Value Level Financial assets: Cash and cash equivalents $ $ 1 Restricted cash 1 Finance receivables 3 Short-term investments, certificates of deposit 2 Financial liabilities: 10.75% Senior secured notes 1 12.75% Senior secured notes 2 Related party Florida seller notes 2 Subsidiary Note payable 2 Lines of Credit 2 Stock repurchase obligation 2 |
Finance Receivables, Credit Q27
Finance Receivables, Credit Quality Information and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Finance Receivables, Credit Quality Information and Allowance for Loan Losses | |
Schedule of finance receivables representing amounts due from customers for advances | June 30, December 31, 2016 2015 Short-term consumer loans $ $ Medium-term consumer loans Gross receivables Unearned advance fees, net of deferred loan origination costs ) ) Finance receivables before allowance for loan losses Allowance for loan losses ) ) Finance receivables, net $ $ Finance receivables, net Current portion $ $ Non-current portion Total finance receivables, net $ $ |
Schedule of changes in the allowance for loan losses by product type | Changes in the allowance for loan losses by product type for the three months ended June 30, 2016, are as follows: Allowance as Balance Balance Receivables a percentage 4/1/2016 Provision Charge-Offs Recoveries 6/30/2016 6/30/2016 of receivable Short-term consumer loans $ $ $ ) $ $ $ % Medium-term consumer loans ) % $ $ $ ) $ $ $ % Changes in the allowance for loan losses by product type for the six months ended June 30, 2016, are as follows: Allowance as Balance Balance Receivables a percentage 1/1/2016 Provision Charge-Offs Recoveries 6/30/2016 6/30/2016 of receivable Short-term consumer loans $ $ $ ) $ $ $ % Medium-term consumer loans ) % $ $ $ ) $ $ $ % Changes in the allowance for loan losses by product type for the three months ended June 30, 2015 are as follows: Allowance as Balance Balance Receivables a percentage 4/1/2015 Provision Charge-Offs Recoveries 6/30/2015 6/30/2015 of receivable Short-term consumer loans $ $ $ ) $ $ $ % Medium-term consumer loans ) % $ $ $ ) $ $ $ % Changes in the allowance for loan losses by product type for the six months ended June 30, 2015 are as follows: Allowance as Balance Balance Receivables a percentage 1/1/2015 Provision Charge-Offs Recoveries 6/30/2015 6/30/2015 of receivable Short-term consumer loans $ $ $ ) $ $ $ % Medium-term consumer loans ) % $ $ $ ) $ $ $ % |
Schedule of changes in the accrual for third-party lender losses | Three months ended Six months ended June 30, June 30, 2016 2015 2016 2015 Balance, beginning of period $ $ $ $ Provision for loan losses Charge-offs, net ) ) ) ) Balance, end of period $ $ $ $ |
Schedule of aging of receivables | June 30, 2016 December 31, 2015 Current finance receivables $ % $ % Past due finance receivables (1 - 30 days) Short-term consumer loans % % Medium-term consumer loans % % Total past due finance receivables (1 - 30 days) % % Past due finance receivables (31 - 60 days) Medium-term consumer loans % % Total past due finance receivables (31 - 60 days) % % Past due finance receivables (61 - 90 days) Medium-term consumer loans % % Total past due finance receivables (61 - 90 days) % % Total delinquent % % $ % $ % |
Pledged Assets and Debt (Tables
Pledged Assets and Debt (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Pledged Assets and Debt | |
Schedule of lines of credit | June 30, 2016 December 31, 2015 Deferred Deferred Issuance Net Issuance Net Principal Costs Principal Principal Costs Principal $7,000 Revolving credit, secured, prime plus 1.00% with 5.00% floor, due July 2017, collateralized by all of Insight Capital, LLC’s assets $ $ $ $ — $ — $ — $31,700 Revolving credit, secured, interest rate as defined below, due March 2017, collateralized by all Guarantor Company assets Less current maturities — — — Long-term portion $ $ $ $ $ $ |
Schedule of senior secured notes payable | June 30, 2016 December 31, 2015 Deferred Deferred Issuance Net Issuance Net Principal Costs Principal Principal Costs Principal $395,000 Senior Note payable, 10.75 %, collateralized by all Guarantor Company assets, semi-annual interest payments with principal due April 2019 $ $ $ $ $ $ $25,000 Senior Note payable, 12.75 %, collateralized by all Guarantor Company assets, semi-annual interest payments with principal due May 2020 Less current maturities — — — — — — Long-term portion $ $ $ $ $ $ |
Schedule of non-guarantor related party Florida seller notes payable | June 30, 2016 December 31, 2015 Deferred Deferred Issuance Net Issuance Principal Costs Principal Principal Costs Principal $8,000 non-guarantor term note, secured, 10.00%, quarterly interest payments with principal due August 2016 $ — $ — $ — $ $ — $ $9,000 non-guarantor term note, secured, 10.00%, quarterly principal and interest payments due August 2016 — — — — — — — — Less current maturities — — — — Long-term portion $ — $ — $ — $ — $ — $ — |
Schedule of subsidiary note payable | June 30, 2016 December 31, 2015 Deferred Deferred Issuance Net Issuance Net Principal Costs Principal Principal Costs Principal $40,000 Note, secured, 16.5%, collateralized by acquired loans, due January 2018 $ $ $ $ $ $ $8,100 Note, secured, 18.5%, collateralized by acquired loans, due December 2016 — — — $1,425 Term note, secured, 4.25%, collateralized by financed asset, due July 2019 $1,165 Term note, secured, 4.5%, collateralized by financed asset, due May 2021 — — — $489 Term note, secured, 8.50%, collateralized by financed asset, due July 2016, paid in full June 2016 — — — — Less current maturities Long-term portion $ $ $ $ $ $ |
Accounts Payable and Accrued 29
Accounts Payable and Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Accounts Payable and Accrued Liabilities | |
Schedule of accounts payable and accrued liabilities | June 30, December 31, 2016 2015 Accounts payable $ $ Accrued payroll and compensated absences Wire transfers payable Accrual for third-party losses Unearned CSO Fees Deferred rent Bill payment Lease termination Federal and state tax — Other $ $ |
Concentrations of Credit Risks
Concentrations of Credit Risks (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Concentrations of Credit Risks | |
Summary of allocation of portfolio balance by state | June 30, 2016 December 31, 2015 Balance Percentage of Balance Percentage of State Outstanding Total Outstanding Outstanding Total Outstanding Alabama $ % $ % Arizona California Florida Virginia Other retail segment states Other internet segment states Total $ % $ % |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Stock Based Compensation | |
Schedule of weighted average assumptions used for awards granted | The following weighted average assumptions were used by the Company for awards re-issued during the six months ended June 30, 2016: Risk-free interest rate % Dividend yield % Expected volatility % Expected term (years) Weighted average fair value of options granted $ |
Schedule of stock option activity | Stock option activity for the six months ended June 30, 2016 is as follows (these amounts have not been rounded in thousands): Weighted-Average Aggregate Exercise Price Weighted-Average Intrinsic Shares (actual per share price) Remaining Contractual Term Value (thousands) Outstanding at December 31, 2015 $ N/A Granted N/A Exercised — — — N/A Forfeited or expired — — N/A Outstanding at June 30, 2016 $ N/A Exercisable at June 30, 2016 $ $ — Vested or expected to vest at June 30, 2016 $ $ — |
Business Segment (Tables)
Business Segment (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Business Segments | |
Summary of financial information of segments | As of and for the three months ended June 30, 2016 Retail % of Internet % of Unallocated % of Financial Services Revenue Financial Services Revenue (Income) Expenses Consolidated Revenue Total Assets $ $ $ — $ Goodwill — — Other Intangible Assets — Total Revenues $ % $ % $ — $ % Provision for Loan Losses % % — % Other Operating Expenses % % — % Operating Gross Profit % % — % Interest Expense, net % % — % Depreciation and Amortization % % — % Other Corporate Expenses (a) — — — — % Income (loss) from Operations, before tax % % ) ) )% (a) Represents expenses not associated directly with operations that are not allocated between reportable segments. Therefore, the Company has elected to disclose other corporate expenses as unallocated. As of and for the six months ended June 30, 2016 Retail % of Internet % of Unallocated % of Financial Services Revenue Financial Services Revenue (Income) Expenses Consolidated Revenue Total Assets $ $ $ — $ Goodwill — — Other Intangible Assets — Total Revenues $ % $ % $ — $ % Provision for Loan Losses % % — % Other Operating Expenses % % — % Operating Gross Profit % % — % Interest Expense, net % % — % Depreciation and Amortization % % — % Loss on Sale of Subsidiary % — — — % Gain on Debt Extinguishment (a) — — — — ) ) )% Other Corporate Expenses (a) — — — — % Income from Operations, before tax % % % (a) Represents income and expenses not associated directly with operations that are not allocated between reportable segments. Therefore, the Company has elected to disclose the gain on debt extinguishment and all other corporate expenses as unallocated. As of and for the three months ended June 30, 2015 Retail % of Internet % of Unallocated % of Financial Services Revenue Financial Services Revenue (Income) Expenses Consolidated Revenue Total Assets $ $ $ — $ Goodwill — — Other Intangible Assets — Total Revenues $ % $ % $ — $ % Provision for Loan Losses % % — % Other Operating Expenses % % — % Operating Gross Profit % % — % Interest Expense, net % % — % Depreciation and Amortization % % — % Market Value of Stock Repurchase Obligation % — — — % Other Corporate Expenses (a) — — — — % Income (loss) from Operations, before tax % ) )% ) ) )% (a) Represents expenses not associated directly with operations that are not allocated between reportable segments. Therefore, the Company has elected to disclose all other corporate expenses as unallocated. As of and for the six months ended June 30, 2015 Retail % of Internet % of Unallocated % of Financial Services Revenue Financial Services Revenue (Income) Expenses Consolidated Revenue Total Assets $ $ $ — $ Goodwill — — Other Intangible Assets — Total Revenues $ % $ % $ — $ % Provision for Loan Losses % % — % Other Operating Expenses % % — % Operating Gross Profit % % — % Interest Expense, net % % — % Depreciation and Amortization % % — % Market Value of Stock Repurchase Obligation % — — — % Other Corporate Expenses (a) — — — — % Income (loss) from Operations, before tax % % ) ) )% (a) Represents expenses not associated directly with operations that are not allocated between reportable segments. Therefore, the Company has elected to disclose all other corporate expenses as unallocated. |
Supplemental Condensed Consol33
Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information | |
Schedule of condensed consolidating balance sheet | Condensed Consolidating Balance Sheet (unaudited) June 30, 2016 Community Guarantor Non-Guarantor Choice Financial Subsidiaries Subsidiaries Eliminations Consolidated Assets Current Assets Cash and cash equivalents $ — $ $ $ — $ Restricted cash — — — Finance receivables, net — — Short-term investments, certificates of deposit — — — Card related pre-funding and receivables — — — Other current assets — ) Total current assets — ) Noncurrent Assets Investment in Subsidiaries — — ) — Finance receivables, net — — — Leasehold improvements and equipment, net — — — Goodwill — — — Other intangible assets — — — Security deposits — — — Deferred tax asset, net — — — Total assets $ $ $ $ ) $ Liabilities and Stockholders’ Equity Current Liabilities Accounts payable and accrued liabilities $ — $ $ ) $ ) $ Money orders payable — — — Accrued interest ) Current portion of capital lease obligation — — — Current portion of lines of credit — — Current portion of subsidiary note payable — — CCFI funding notes — — ) — Deferred revenue — — — Total current liabilities ) Noncurrent Liabilities Lease termination payable — — — Capital lease obligation — — — Lines of credit — — — Subsidiary note payable — — Senior secured notes — — — Deferred Revenue — — — Total liabilities ) Stockholders’ Equity ) Total liabilities and stockholders’ equity $ $ $ $ ) $ Community Choice Financial Inc. and Subsidiaries Condensed Consolidating Balance Sheet December 31, 2015 Community Guarantor Non-Guarantor Choice Financial Subsidiaries Subsidiaries Eliminations Consolidated Assets Current Assets Cash and cash equivalents $ — $ $ $ — $ Restricted cash — — — Finance receivables, net — — Short-term investments, certificates of deposit — — — Card related pre-funding and receivables — — — Other current assets — ) Total current assets — ) Noncurrent Assets Investment in Subsidiaries — ) — Finance receivables, net — — — Leasehold improvements and equipment, net — — Goodwill — — Other intangible assets — — Security deposits — — Deferred tax asset, net — — — Total assets $ $ $ $ ) $ Liabilities and Stockholders’ Equity Current Liabilities Accounts payable and accrued liabilities $ — $ $ $ ) $ Money orders payable — — Accrued interest ) Current portion of capital lease obligation — — Current portion of related party Florida seller notes — — — Current portion of subsidiary note payable — — — CCFI funding notes — — ) — Deferred revenue — — — Total current liabilities ) Noncurrent Liabilities Accrued liabilities — — — — — Lease termination payable — — Capital lease obligation — — Stock repurchase obligation — — — Lines of credit — — — Subsidiary note payable — — Senior secured notes — — — Total liabilities ) Stockholders’ Equity (Deficit) ) ) ) Total liabilities and stockholders’ equity $ $ $ $ ) $ |
Schedule of condensed consolidating statements of income | Condensed Consolidating Statements of Income (unaudited) Six Months Ended June 30, 2016 Community Guarantor Non-Guarantor Choice Financial Subsidiaries Subsidiaries Eliminations Consolidated Revenues: Finance receivable fees $ — $ $ $ — $ Credit service fees — — — Check cashing fees — — Card fees — — Dividend — — ) — Other — ) Total revenues — ) Operating expenses: Salaries and benefits — — Provision for loan losses — — Occupancy — ) Advertising and marketing — — Lease termination — — Depreciation and amortization — — Other — — Total operating expenses — ) Operating gross profit — ) Corporate expenses — — Intercompany management fee — ) — — Depreciation and amortization — — Interest expense, net ) Interest expense allocation ) — — — Loss on sale of subsidiary — — — Gain on debt extinguishment ) — — — ) Total corporate and other expenses ) ) Income (loss) before income taxes ) ) Provision (benefit) for income taxes ) ) Net income (loss) $ $ ) $ $ ) $ Community Choice Financial Inc. and Subsidiaries Condensed Consolidating Statements of Income (unaudited) Six Months Ended June 30, 2015 Community Guarantor Non-Guarantor Choice Financial Subsidiaries Subsidiaries Eliminations Consolidated Revenues: Finance receivable fees $ — $ $ $ — $ Credit service fees — — — Check cashing fees — ) Card fees — — Dividend — — ) — Other — ) Total revenues — ) Operating expenses: Salaries and benefits — — Provision for loan losses — — Occupancy — — Advertising and marketing — ) Lease termination costs — — Depreciation and amortization — — Other — ) Total operating expenses — ) Operating gross profit — ) Corporate expenses — ) Intercompany management fee — ) — — Depreciation and amortization — — Interest expense, net ) Interest expense allocation ) — — Market value of stock repurchase obligation — — — Total corporate and other expenses — ) Income (loss) before income taxes — ) ) ) Provision (benefit) for income taxes — ) ) ) Net income (loss) $ — $ ) $ $ ) $ ) |
Schedule of condensed consolidating statement of cash flows | Condensed Consolidating Statement of Cash Flows (unaudited) Six Months Ended June 30, 2016 Community Guarantor Non-Guarantor Choice Financial Subsidiaries Subsidiaries Consolidated Net cash provided by operating activities $ $ $ $ Cash flows from investing activities Net receivables originated — ) ) ) Net acquired assets, net of cash — ) — ) Purchase of leasehold improvements and equipment — ) ) ) Net cash used in investing activities — ) ) ) Cash flows from financing activities Repurchase of senior secured notes ) — — ) Proceeds from subsidiary note — Payments on subsidiary note — ) — ) Proceeds on CCFI Funding Notes — ) — Payments on capital lease obligations — ) ) ) Proceeds on lines of credit — Debt issuance costs ) ) Net cash provided by (used in) financing activities ) ) Net increase in cash and cash equivalents — ) ) Cash and cash equivalents: Beginning — Ending $ — $ $ $ Community Choice Financial Inc. and Subsidiaries Condensed Consolidating Statement of Cash Flows (unaudited) Six Months Ended June 30, 2015 Community Guarantor Non-Guarantor Choice Financial Subsidiaries Subsidiaries Consolidated Net cash provided by operating activities $ $ $ $ Cash flows from investing activities Net receivables originated — ) ) ) Net acquired assets, net of cash — ) — ) Purchase of leasehold improvements and equipment — ) ) ) Net cash used in investing activities — ) ) ) Cash flows from financing activities Proceeds from subsidiary note — — Payments on subsidiary note — ) — ) Payments on related party Florida seller notes — — ) ) Payments on capital lease obligations, net — ) ) ) Proceeds from lines of credit — — Intercompany activities ) — — Debt issuance costs ) ) ) ) Net cash provided by (used in) financing activities ) Net increase in cash and cash equivalents — Cash and cash equivalents: Beginning — Ending $ — $ $ $ |
Ownership, Nature of Business34
Ownership, Nature of Business, and Significant Accounting Policies (Details) | 6 Months Ended |
Jun. 30, 2016segmentstatelocation | |
Nature of business | |
Number of retail locations owned and operated | location | 466 |
Number of states in which stores are operated | 15 |
Number of states in which the Company had an internet presence | 31 |
Business Segments | |
Number of operating segments | segment | 2 |
Ownership, Nature of Business35
Ownership, Nature of Business, and Significant Accounting Policies - Financing Receivables (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Secured short term loan | ||
Finance receivables | ||
Period of past due when accounts are required to be charged-off | 30 days | |
Medium term loans up to one year | ||
Finance receivables | ||
Maturity period of loan, for loan balances to be charged-off when accounts are past due by stipulated period | 1 year | |
Period of past due when accounts are required to be charged-off | 60 days | |
Medium term loans greater than one year | ||
Finance receivables | ||
Maturity period of loan, for loan balances to be charged-off when accounts are past due by stipulated period | 1 year | |
Maximum | Medium term loans greater than one year | ||
Finance receivables | ||
Period of past due when accounts are required to be charged-off | 91 days | |
Consumer Borrower | Secured short term loan | ||
Finance receivables | ||
Fee per $.1 borrowed (as a percent) | 17.80% | 17.70% |
Consumer Borrower | Unsecured short term loan | ||
Finance receivables | ||
Interest rate on loan products (as a percent) | 25.00% | |
Consumer Borrower | Secured Medium Term Loan | ||
Finance receivables | ||
Maturity period of promissory note | 90 days | |
Fee per $.1 borrowed (as a percent) | 13.20% | 13.70% |
Consumer Borrower | Minimum | Secured short term loan | ||
Finance receivables | ||
Maturity period of promissory note | 90 days | |
Consumer Borrower | Minimum | Unsecured short term loan | ||
Finance receivables | ||
Consumer loan products | $ 100 | |
Maturity period of promissory note | 14 days | |
Fee per $.1 borrowed (as a percent) | 15.00% | |
Consumer Borrower | Minimum | Medium-term consumer loans | ||
Finance receivables | ||
Maturity period of promissory note | 90 days | |
Consumer Borrower | Minimum | Unsecured Medium Term Loan | ||
Finance receivables | ||
Consumer loan products | $ 100 | |
Maturity period of promissory note | 3 months | |
Consumer Borrower | Maximum | Short-term consumer loans | ||
Finance receivables | ||
Maturity period of promissory note | 90 days | |
Consumer Borrower | Maximum | Unsecured short term loan | ||
Finance receivables | ||
Consumer loan products | $ 1,000 | |
Maturity period of promissory note | 30 days | |
Fee per $.1 borrowed (as a percent) | 20.00% | |
Consumer Borrower | Maximum | Medium-term consumer loans | ||
Finance receivables | ||
Maturity period of promissory note | 36 months | |
Consumer Borrower | Maximum | Unsecured Medium Term Loan | ||
Finance receivables | ||
Consumer loan products | $ 5,000 | |
Maturity period of promissory note | 36 months |
Ownership, Nature of Business36
Ownership, Nature of Business, and Significant Accounting Policies - Change in accounting principle (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Reclassifications: | ||
Current assets | $ 213,959 | $ 241,918 |
Current liabilities | $ 84,622 | 67,585 |
Adjustment | ||
Reclassifications: | ||
Noncurrent assets | (6,828) | |
Current assets | 13 | |
Current liabilities | (3) | |
Noncurrent liabilities | $ (6,812) |
Ownership, Nature of Business37
Ownership, Nature of Business, and Significant Accounting Policies - Estimated fair values of financial instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financial assets: | ||
Restricted cash | $ 3,300 | $ 3,460 |
Short-term investments, certificates of deposit | $ 400 | 1,115 |
Financial liabilities: | ||
Stock repurchase obligation | $ 3,130 | |
Treasury stock. | ||
Shares held in treasury stock | 1,000,000 | 0 |
Level 1 | Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | $ 89,748 | $ 98,941 |
Restricted cash | 3,300 | 3,460 |
Level 1 | Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 89,748 | 98,941 |
Restricted cash | 3,300 | 3,460 |
Level 2 | Carrying Amount | ||
Financial assets: | ||
Short-term investments, certificates of deposit | 400 | 1,115 |
Financial liabilities: | ||
Lines of Credit | 33,950 | 27,200 |
Stock repurchase obligation | 3,130 | |
Level 2 | Fair Value | ||
Financial assets: | ||
Short-term investments, certificates of deposit | 400 | 1,115 |
Financial liabilities: | ||
Lines of Credit | 33,950 | 27,200 |
Stock repurchase obligation | 3,130 | |
Level 3 | Carrying Amount | ||
Financial assets: | ||
Finance receivables | 109,225 | 128,501 |
Level 3 | Fair Value | ||
Financial assets: | ||
Finance receivables | $ 109,225 | $ 128,501 |
10.75% senior secured notes due 2019 | ||
Estimated fair values of financial instruments | ||
Interest rate (as a percent) | 10.75% | 10.75% |
10.75% senior secured notes due 2019 | Level 1 | Carrying Amount | ||
Financial liabilities: | ||
Notes payable | $ 241,927 | $ 328,716 |
10.75% senior secured notes due 2019 | Level 1 | Fair Value | ||
Financial liabilities: | ||
Notes payable | $ 98,585 | $ 77,248 |
12.75% senior secured notes due 2020 | ||
Estimated fair values of financial instruments | ||
Interest rate (as a percent) | 12.75% | 12.75% |
12.75% senior secured notes due 2020 | Level 2 | Carrying Amount | ||
Financial liabilities: | ||
Notes payable | $ 12,500 | $ 25,000 |
12.75% senior secured notes due 2020 | Level 2 | Fair Value | ||
Financial liabilities: | ||
Notes payable | 6,041 | 9,063 |
Related party Florida seller notes | Level 2 | Carrying Amount | ||
Financial liabilities: | ||
Notes payable | 10,097 | |
Related party Florida seller notes | Level 2 | Fair Value | ||
Financial liabilities: | ||
Notes payable | 10,097 | |
Subsidiary Note payable | Level 2 | Carrying Amount | ||
Financial liabilities: | ||
Notes payable | 49,727 | 36,154 |
Subsidiary Note payable | Level 2 | Fair Value | ||
Financial liabilities: | ||
Notes payable | $ 49,727 | $ 36,154 |
Finance Receivables, Credit Q38
Finance Receivables, Credit Quality Information and Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Finance Receivables, Credit Quality Information and Allowance for Loan Losses | ||||||
Finance receivables, net | $ 109,225 | $ 128,501 | ||||
Consumer Borrower | ||||||
Finance Receivables, Credit Quality Information and Allowance for Loan Losses | ||||||
Gross receivables | 129,689 | 155,296 | $ 181,420 | |||
Unearned advance fees, net of deferred loan origination costs | (2,162) | (2,903) | ||||
Finance receivables before allowance for loan losses | 127,527 | 152,393 | ||||
Allowance for loan losses | (18,302) | $ (19,282) | (23,892) | (29,283) | $ (25,758) | $ (30,363) |
Finance receivables, net | 109,225 | 128,501 | ||||
Short-term consumer loans | Consumer Borrower | ||||||
Finance Receivables, Credit Quality Information and Allowance for Loan Losses | ||||||
Gross receivables | 64,479 | 76,631 | 86,431 | |||
Allowance for loan losses | (2,761) | (2,838) | (3,676) | (4,462) | (4,024) | (5,141) |
Medium-term consumer loans | Consumer Borrower | ||||||
Finance Receivables, Credit Quality Information and Allowance for Loan Losses | ||||||
Gross receivables | 65,210 | 78,665 | 94,989 | |||
Allowance for loan losses | $ (15,541) | $ (16,444) | $ (20,216) | $ (24,821) | $ (21,734) | $ (25,222) |
Finance Receivables, Credit Q39
Finance Receivables, Credit Quality Information and Allowance for Loan Losses - Finance receivables (net), current and non-current portion (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Finance receivables, net | ||
Finance receivables, net Current portion | $ 101,258 | $ 119,704 |
Finance receivables, net Non-current portion | 7,967 | 8,797 |
Finance receivables, net | $ 109,225 | $ 128,501 |
Finance Receivables, Credit Q40
Finance Receivables, Credit Quality Information and Allowance for Loan Losses - Changes in the allowance for the loan losses by product type (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Changes in the allowance for the loan losses by product type | |||||
Allowance for TDR's | $ 30,272 | $ 51,916 | $ 56,747 | $ 91,826 | |
Third party lender | |||||
Changes in the allowance for the loan losses by product type | |||||
Balance at the beginning of the period | 2,216 | 3,103 | 2,610 | 4,434 | |
Provision | 7,535 | 9,354 | 12,736 | 17,328 | |
Charge-offs | (6,477) | (9,428) | (12,072) | (18,733) | |
Balance at the end of the period | 3,274 | 3,029 | 3,274 | 3,029 | |
Debt Sales | 109 | 460 | |||
Total gross finance receivables for which accrual for third-party lender losses has been recorded | 36,773 | 36,773 | $ 40,552 | ||
Consumer Borrower | |||||
Changes in the allowance for the loan losses by product type | |||||
Balance at the beginning of the period | 19,282 | 25,758 | 23,892 | 30,363 | |
Provision | 21,325 | 40,279 | 41,034 | 69,959 | |
Charge-offs | (40,989) | (57,550) | (85,887) | (117,297) | |
Recoveries | 18,684 | 20,796 | 39,263 | 46,258 | |
Balance at the end of the period | 18,302 | 29,283 | 18,302 | 29,283 | |
Total Finance receivables at the end of the period | $ 129,689 | $ 181,420 | $ 129,689 | $ 181,420 | 155,296 |
Allowance as a percentage of receivable | 14.11% | 16.14% | 14.11% | 16.14% | |
Troubled debt restructuring | |||||
Changes in the allowance for the loan losses by product type | |||||
Allowance for TDR's | $ 18 | $ 68 | $ 114 | $ 270 | |
Net carrying value of TDR's | 47 | 182 | 335 | 652 | |
Short-term consumer loans | Consumer Borrower | |||||
Changes in the allowance for the loan losses by product type | |||||
Balance at the beginning of the period | 2,838 | 4,024 | 3,676 | 5,141 | |
Provision | 10,968 | 18,635 | 18,699 | 30,277 | |
Charge-offs | (26,600) | (37,156) | (53,518) | (72,717) | |
Recoveries | 15,555 | 18,959 | 33,904 | 41,761 | |
Balance at the end of the period | 2,761 | 4,462 | 2,761 | 4,462 | |
Total Finance receivables at the end of the period | $ 64,479 | $ 86,431 | $ 64,479 | $ 86,431 | 76,631 |
Allowance as a percentage of receivable | 4.28% | 5.16% | 4.28% | 5.16% | |
Debt Sales | $ 527 | $ 944 | $ 631 | ||
Medium-term consumer loans | Consumer Borrower | |||||
Changes in the allowance for the loan losses by product type | |||||
Balance at the beginning of the period | 16,444 | $ 21,734 | 20,216 | 25,222 | |
Provision | 10,357 | 21,644 | 22,335 | 39,682 | |
Charge-offs | (14,389) | (20,394) | (32,369) | (44,580) | |
Recoveries | 3,129 | 1,837 | 5,359 | 4,497 | |
Balance at the end of the period | 15,541 | 24,821 | 15,541 | 24,821 | |
Total Finance receivables at the end of the period | $ 65,210 | $ 94,989 | $ 65,210 | $ 94,989 | $ 78,665 |
Allowance as a percentage of receivable | 23.83% | 26.13% | 23.83% | 26.13% | |
Debt Sales | $ 1,850 | $ 1,850 | |||
Medium-term consumer loans | Troubled debt restructuring | Consumer Borrower | |||||
Changes in the allowance for the loan losses by product type | |||||
Provision and write off | 33 | $ 163 | 389 | $ 667 | |
Payment defaults for loans evaluated for impairment | 391 | 502 | 768 | 1,754 | |
Check cashing | Consumer Borrower | |||||
Changes in the allowance for the loan losses by product type | |||||
Provision | $ 1,412 | $ 2,283 | $ 2,977 | $ 4,539 |
Finance Receivables, Credit Q41
Finance Receivables, Credit Quality Information and Allowance for Loan Losses - Aging of receivables (Details) - Consumer Borrower - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Aging of receivables | |||
Current finance receivables | $ 117,763 | $ 138,346 | |
Current finance receivables (as a percent) | 90.90% | 89.10% | |
Past due finance receivables | |||
Total past due finance receivables (1 - 30 days) | $ 7,551 | $ 10,701 | |
Total past due finance receivables (1 - 30 days) (as a percent) | 5.80% | 6.90% | |
Total past due finance receivables (31 - 60 days) | $ 2,394 | $ 3,225 | |
Total past due finance receivables (31 - 60 days) (as a percent) | 1.80% | 2.10% | |
Total past due finance receivables (61 - 90 days) | $ 1,981 | $ 3,024 | |
Total past due finance receivables (61 - 90 days) (as a percent) | 1.50% | 1.90% | |
Total delinquent | $ 11,926 | $ 16,950 | |
Total delinquent (as a percent) | 9.10% | 10.90% | |
Gross receivables | $ 129,689 | $ 155,296 | $ 181,420 |
Gross receivables (as a percent) | 100.00% | 100.00% | |
Short-term consumer loans | |||
Past due finance receivables | |||
Total past due finance receivables (1 - 30 days) | $ 945 | $ 1,268 | |
Total past due finance receivables (1 - 30 days) (as a percent) | 0.70% | 0.80% | |
Gross receivables | $ 64,479 | $ 76,631 | 86,431 |
Medium-term consumer loans | |||
Past due finance receivables | |||
Total past due finance receivables (1 - 30 days) | $ 6,606 | $ 9,433 | |
Total past due finance receivables (1 - 30 days) (as a percent) | 5.10% | 6.10% | |
Total past due finance receivables (31 - 60 days) | $ 2,394 | $ 3,225 | |
Total past due finance receivables (31 - 60 days) (as a percent) | 1.80% | 2.10% | |
Total past due finance receivables (61 - 90 days) | $ 1,981 | $ 3,024 | |
Total past due finance receivables (61 - 90 days) (as a percent) | 1.50% | 1.90% | |
Gross receivables | $ 65,210 | $ 78,665 | $ 94,989 |
Related Party Transactions an42
Related Party Transactions and Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Related party with which entity has entered into information technology services agreement | ||||
Related party transactions and balances | ||||
Expenses incurred from transactions with related party | $ 128 | $ 66 | $ 266 | $ 147 |
Telecommunications vendor | Certain senior members of management | ||||
Related party transactions and balances | ||||
Expenses incurred from transactions with related party | $ 958 | $ 233 | $ 1,746 | $ 373 |
Goodwill and Other Intangible43
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Feb. 01, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 |
Goodwill and Other Intangible Assets | |||||
Goodwill impairment | $ 0 | ||||
Amortization expense on implied intangible assets | $ 146 | $ 519 | $ 417 | $ 1,111 |
Pledged Assets and Debt - Line
Pledged Assets and Debt - Line of Credit Facility (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Line of Credit Facility | ||
Current portion of lines of credit | $ 31,359 | |
Long-term portion | 2,224 | $ 26,625 |
Revolving Credit Facility | ||
Line of Credit Facility | ||
Long term debt, Principal | 33,950 | 27,200 |
Long-term portion, Principal | 2,250 | 27,200 |
Less current maturities, Principal | 31,700 | |
Less current maturities, Deferred Issuance costs | 341 | 0 |
Total, Deferred Issuance costs | 367 | 575 |
Long-term portion, Deferred Issuance costs | 26 | 575 |
Line of credit | 33,583 | 26,625 |
Current portion of lines of credit | 31,359 | |
Long-term portion | $ 2,224 | 26,625 |
Target utilization required of aggregate commitment below which a make whole payment is due (as a percent) | 85.00% | |
Revolving Credit Facility | Revolving credit, secured, due July 2017 | ||
Line of Credit Facility | ||
Maximum borrowing capacity | $ 7,000 | |
Long term debt, Principal | 2,250 | |
Total, Deferred Issuance costs | 26 | |
Line of credit | 2,224 | |
Revolving Credit Facility | Revolving credit due March 2017 | ||
Line of Credit Facility | ||
Maximum borrowing capacity | 31,700 | |
Long term debt, Principal | 31,700 | 27,200 |
Total, Deferred Issuance costs | 341 | 575 |
Line of credit | $ 31,359 | 26,625 |
Revolving Credit Facility | Other current assets | ||
Line of Credit Facility | ||
Total, Deferred Issuance costs | 13 | |
Line of credit | $ 7,000 | |
Prime rate | ||
Line of Credit Facility | ||
Interest rate at the end of period (as a percent) | 3.50% | 3.25% |
Prime rate | Revolving Credit Facility | Revolving credit, secured, due July 2017 | ||
Line of Credit Facility | ||
Margin (as a percent) | 1.00% | |
Variable interest rate base floor (as a percent) | 5.00% | |
1-Month LIBOR | ||
Line of Credit Facility | ||
Variable rate basis | 1-month LIBOR | 1-month LIBOR |
Interest rate at the end of period (as a percent) | 0.47% | 0.24% |
1-Month LIBOR | Revolving Credit Facility | ||
Line of Credit Facility | ||
Margin (as a percent) | 14.00% | |
Variable interest rate base floor (as a percent) | 15.00% |
Pledged Assets and Debt - Senio
Pledged Assets and Debt - Senior secure notes payable (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Senior notes payable | ||
Long-term portion | $ 250,905 | $ 347,913 |
Gain on Debt Extinguishment | 62,852 | |
Senior secured notes payable | ||
Senior notes payable | ||
Long term debt, Principal | 254,427 | 353,716 |
Long-term portion, Principal | 254,427 | 353,716 |
Total, Deferred Issuance costs | 3,522 | 5,803 |
Long-term portion, Deferred Issuance costs | 3,522 | 5,803 |
Senior notes | 250,905 | 347,913 |
Long-term portion | 250,905 | 347,913 |
Repurchase of Senior secured notes | 99,289 | |
Gain on Debt Extinguishment | 62,852 | |
Senior secured notes payable | 10.75% senior secured notes due 2019 | ||
Senior notes payable | ||
Long term debt, Principal | 241,927 | 328,716 |
Total, Deferred Issuance costs | 3,258 | 5,207 |
Senior notes | 238,669 | 323,509 |
Face amount of debt | $ 395,000 | |
Interest rate (as a percent) | 10.75% | |
Senior secured notes payable | 12.75% senior secured notes due 2020 | ||
Senior notes payable | ||
Long term debt, Principal | $ 12,500 | 25,000 |
Total, Deferred Issuance costs | 264 | 596 |
Senior notes | 12,236 | $ 24,404 |
Face amount of debt | $ 25,000 | |
Interest rate (as a percent) | 12.75% |
Pledged Assets and Debt - Non-g
Pledged Assets and Debt - Non-guarantor notes payable (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jan. 31, 2016 | Dec. 31, 2015 |
Debt | |||
Less: current maturities | $ 10,097 | ||
Florida acquisition | Related party notes payable | Non-Guarantor Subsidiaries | |||
Debt | |||
Long term debt, Principal | 10,097 | ||
Note Payable | $ (10,097) | 10,097 | |
Less: current maturities | 10,097 | ||
Florida acquisition | Related party notes payable | Non-Guarantor Subsidiaries | 10% first secured notes | |||
Debt | |||
Face amount of debt | $ 8,000 | ||
Interest rate (as a percent) | 10.00% | ||
Long term debt, Principal | 7,905 | ||
Note Payable | 7,905 | ||
Florida acquisition | Related party notes payable | Non-Guarantor Subsidiaries | 10% second secured notes | |||
Debt | |||
Face amount of debt | $ 9,000 | ||
Interest rate (as a percent) | 10.00% | ||
Long term debt, Principal | 2,192 | ||
Note Payable | $ 2,192 |
Pledged Assets and Debt - Subsi
Pledged Assets and Debt - Subsidiary notes payable (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 01, 2016 | May 24, 2016 | Apr. 20, 2016 | Dec. 31, 2015 |
Debt | |||||
Less current maturities | $ 8,110 | $ 211 | |||
Long-term portion | 40,565 | 35,506 | |||
Subsidiary Note payable | |||||
Debt | |||||
Long term debt, Principal | 49,727 | 36,154 | |||
Less current maturities, Principal | 8,211 | 214 | |||
Long-term portion, Principal | 41,516 | 35,940 | |||
Total, Deferred Issuance costs | 1,052 | 437 | |||
Less current maturities, Deferred Issuance costs | 101 | 3 | |||
Long-term portion, Deferred Issuance costs | 951 | 434 | |||
Subsidiary notes payable | 48,675 | 35,717 | |||
Less current maturities | 8,110 | 211 | |||
Long-term portion | 40,565 | 35,506 | |||
Subsidiary Note payable | Term note, secured, due January 2018 | |||||
Debt | |||||
Long term debt, Principal | 39,500 | 35,000 | |||
Total, Deferred Issuance costs | 922 | 425 | |||
Subsidiary notes payable | 38,578 | 34,575 | |||
Face amount of debt | $ 40,000 | ||||
Interest rate (as a percent) | 16.50% | ||||
Subsidiary Note payable | Term Note, secured, due December 2016 | |||||
Debt | |||||
Long term debt, Principal | $ 8,100 | ||||
Total, Deferred Issuance costs | 99 | ||||
Subsidiary notes payable | 8,001 | ||||
Face amount of debt | $ 8,100 | ||||
Interest rate (as a percent) | 18.50% | ||||
Subsidiary Note payable | Term note, secured, due July 2019 | |||||
Debt | |||||
Long term debt, Principal | $ 967 | 995 | |||
Total, Deferred Issuance costs | 10 | 12 | |||
Subsidiary notes payable | 957 | 983 | |||
Face amount of debt | $ 1,425 | ||||
Interest rate (as a percent) | 4.25% | ||||
Subsidiary Note payable | Term Note, secured, due May 2021 | |||||
Debt | |||||
Long term debt, Principal | $ 1,160 | ||||
Total, Deferred Issuance costs | 21 | ||||
Subsidiary notes payable | 1,139 | ||||
Face amount of debt | $ 1,165 | $ 1,165 | |||
Interest rate (as a percent) | 4.50% | ||||
Subsidiary Note payable | Term Note, secured, due July 2016 | |||||
Debt | |||||
Long term debt, Principal | 159 | ||||
Subsidiary notes payable | $ 159 | ||||
Face amount of debt | $ 489 | ||||
Interest rate (as a percent) | 8.50% | ||||
Maximum | Subsidiary Note payable | Term note, secured, due January 2018 | |||||
Debt | |||||
Face amount of debt | $ 40,000 | ||||
Maximum | Subsidiary Note payable | Term Note, secured, due December 2016 | |||||
Debt | |||||
Face amount of debt | $ 8,100 |
Accounts Payable and Accrued 48
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Accounts Payable and Accrued Liabilities | ||
Accounts payable | $ 2,558 | $ 4,403 |
Accrued payroll and compensated absences | 6,227 | 7,673 |
Wire transfers payable | 1,457 | 1,795 |
Accrual for third-party losses | 3,274 | 2,610 |
Unearned CSO fees | 4,558 | 4,990 |
Deferred rent | 1,058 | 1,229 |
Bill payment | 1,777 | 4,611 |
Lease termination | 1,554 | 1,180 |
Federal and state tax | 2,190 | |
Other | 4,443 | 6,125 |
Accounts payable and accrued liabilities | $ 29,096 | $ 34,616 |
Operating and Capital Lease C49
Operating and Capital Lease Commitments and Total Rental Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Operating and Capital Lease Commitments and Total Rental Expense | ||||
Rental expense, including maintenance and real estate tax expense | $ 6,997 | $ 8,047 | $ 14,051 | $ 15,956 |
Lease termination | $ 1,101 | $ 826 | $ 1,101 | $ 826 |
Concentrations of Credit Risk50
Concentrations of Credit Risks (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016USD ($)item | Dec. 31, 2015USD ($) | |
Finance receivables | ||
Concentration of credit risks | ||
Number of states in which customers are living | item | 34 | |
Finance receivables | Geographic concentration risk | ||
Concentration of credit risks | ||
Balance Outstanding | $ 129,689 | $ 155,296 |
Percentage of Total Outstanding | 100.00% | 100.00% |
Finance receivables | Geographic concentration risk | Alabama | ||
Concentration of credit risks | ||
Balance Outstanding | $ 14,129 | $ 16,375 |
Percentage of Total Outstanding | 10.90% | 10.60% |
Finance receivables | Geographic concentration risk | Arizona | ||
Concentration of credit risks | ||
Balance Outstanding | $ 10,871 | $ 14,137 |
Percentage of Total Outstanding | 8.40% | 9.10% |
Finance receivables | Geographic concentration risk | California | ||
Concentration of credit risks | ||
Balance Outstanding | $ 51,029 | $ 56,586 |
Percentage of Total Outstanding | 39.30% | 36.40% |
Finance receivables | Geographic concentration risk | Florida | ||
Concentration of credit risks | ||
Balance Outstanding | $ 4,012 | $ 8,052 |
Percentage of Total Outstanding | 3.10% | 5.20% |
Finance receivables | Geographic concentration risk | Virginia | ||
Concentration of credit risks | ||
Balance Outstanding | $ 12,557 | $ 14,726 |
Percentage of Total Outstanding | 9.70% | 9.40% |
Finance receivables | Geographic concentration risk | Other retail segment states | ||
Concentration of credit risks | ||
Balance Outstanding | $ 23,497 | $ 25,412 |
Percentage of Total Outstanding | 18.10% | 16.40% |
Finance receivables | Geographic concentration risk | Other internet segment states | ||
Concentration of credit risks | ||
Balance Outstanding | $ 13,594 | $ 20,008 |
Percentage of Total Outstanding | 10.50% | 12.90% |
Third party lender | ||
Concentration of credit risks | ||
Total gross finance receivables for which accrual for third-party lender losses has been recorded | $ 36,773 | $ 40,552 |
Sale of Subsidiary (Details)
Sale of Subsidiary (Details) $ in Thousands | Feb. 01, 2016USD ($)storeitemshares | Jun. 30, 2016USD ($)location |
Sale of Subsidiary | ||
Number of stores | location | 466 | |
Treasury stock | $ 50 | |
Disposal Group Disposed Of By Sale Not Discontinued Operations | Florida II | ||
Sale of Subsidiary | ||
Consideration for disposal (in shares) | shares | 1,000,000 | |
Treasury stock | $ 50 | |
Stock repurchase obligation | $ 3,130 | |
Number of promissory notes | item | 2 | |
Consideration in form of clearing outstanding debt | $ 10,112 | |
Pre-tax loss on sale of subsidiary | 1,569 | |
Goodwill written-off | 5,691 | |
Tax loss on sale | $ 24,062 | |
Disposal Group Disposed Of By Sale Not Discontinued Operations | Florida II | Retail Financial Services | ||
Sale of Subsidiary | ||
Number of stores | store | 43 | |
Disposal Group Disposed Of By Sale Not Discontinued Operations | Florida II | Revolving Credit Facility | ||
Sale of Subsidiary | ||
Maximum borrowing capacity | $ 6,000 | |
Loan loss reserve | $ 3,000 |
Business Combination (Details)
Business Combination (Details) - Florida II $ in Thousands | May 18, 2016USD ($)location |
Number of retail locations acquired | location | 5 |
Consideration in form of clearing outstanding debt | $ 4,821 |
Pretax gain | $ 296 |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Options (Details) - Stock options - $ / shares | May 16, 2016 | Jun. 30, 2016 |
Stock based compensation | ||
Number of options cancelled | 1,270,106 | |
Options re-issued | 1,243,299 | 1,243,299 |
Exercisable at the end of the period (in dollars per share) | $ 2.25 | $ 2.41 |
Vested (in shares) | 1,233,499 | |
Vesting on specific dates defined in the award agreements (in shares) | 9,800 |
Stock Based Compensation - Weig
Stock Based Compensation - Weighted Average Assumptions (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Weighted average assumptions for options grants | |||
Risk-free interest rate (as a percent) | 1.30% | ||
Dividend yield (as a percent) | 0.00% | ||
Expected volatility (as a percent) | 65.00% | ||
Expected term | 5 years | ||
Weighted average fair value of options granted (in dollars per share) | $ 1.23 | ||
Additional disclosure | |||
Stock-based compensation costs | $ 1,270 | $ 372 | |
Unrecognized stock-based compensation costs to be recognized over future periods | 44 | $ 942 | |
Remaining unrecognized compensation expenses to be recognized for awards that vest over the requisite period | $ 44 | ||
Weighted average period over remaining unrecognized compensation expenses to be recognized for awards that vest over the requisite period | 1 year 3 months | ||
Income tax benefit recognized in the consolidated statements of operations for share-based compensation arrangements | $ 508 | $ 149 |
Stock Based Compensation - (Det
Stock Based Compensation - (Details) - Stock options - $ / shares | May 16, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Shares | |||
Outstanding at the beginning of the period (in shares) | 1,662,614 | ||
Granted (in shares) | 1,243,299 | 1,243,299 | |
Forfeited or expired (in shares) | 1,614,652 | ||
Outstanding at the end of the period (in shares) | 1,291,261 | 1,662,614 | |
Exercisable at the end of the period (in shares) | 1,267,111 | ||
Vested or expected to vest at the end of the period (in shares) | 1,291,261 | ||
Weighted-Average Exercise Price (actual per share price) | |||
Outstanding at the beginning of the period (in dollars per share) | $ 7.54 | ||
Granted (in dollars per share) | 2.25 | ||
Outstanding at the end of the period (in dollars per share) | 2.40 | $ 7.54 | |
Exercisable at the end of the period (in dollars per share) | $ 2.25 | 2.41 | |
Vested or expected to vest at the end of the period (in dollars per share) | $ 2.40 | ||
Weighted-Average Remaining Contractual Term | |||
Weighted-Average Remaining Contractual Term | 9 years 9 months 18 days | 4 years 9 months 18 days | |
Granted | 9 years 9 months 18 days | ||
Exercisable at the end of the period | 9 years 9 months 18 days | ||
Vested or expected to vest at the end of the period | 9 years 9 months 18 days | ||
Un-vested award (in shares) | 24,150 | ||
Weighted-average fair value at grant date (in dollars per share) | $ 0.89 |
Business Segments (Details)
Business Segments (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)segment | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Business segment | |||||
Number of operating segments | segment | 2 | ||||
Total Assets | $ 414,458 | $ 607,305 | $ 414,458 | $ 607,305 | $ 459,544 |
Goodwill | 146,877 | 221,667 | 146,877 | 221,667 | 152,568 |
Other Intangible Assets | 1,336 | 2,569 | 1,336 | 2,569 | $ 1,913 |
Total Revenues | $ 98,329 | $ 130,264 | $ 205,886 | $ 266,698 | |
Total Revenues, % of Revenue | 100.00% | 100.00% | 100.00% | 100.00% | |
Provision for loan losses | $ 30,272 | $ 51,916 | $ 56,747 | $ 91,826 | |
Provision for Loan Losses, % of Revenue | 30.80% | 39.90% | 27.60% | 34.40% | |
Other Operating Expenses | $ 45,151 | $ 53,905 | $ 88,114 | $ 103,282 | |
Other Operating Expenses, % of Revenue | 45.90% | 41.30% | 42.80% | 38.80% | |
Operating Gross Profit | $ 22,906 | $ 24,443 | $ 61,025 | $ 71,590 | |
Operating Gross Profit, % of Revenue | 23.30% | 18.80% | 29.60% | 26.80% | |
Interest Expense, net | $ 10,847 | $ 15,151 | $ 22,310 | $ 29,359 | |
Interest Expense, net, % of Revenue | 11.00% | 11.60% | 10.80% | 11.00% | |
Depreciation and Amortization | $ 1,222 | $ 1,395 | $ 2,431 | $ 2,810 | |
Depreciation and Amortization, % of Revenue | 1.20% | 1.10% | 1.20% | 1.10% | |
Loss on sale of subsidiary | $ 1,569 | ||||
Loss on sale of subsidiary, % of Revenue | 0.80% | ||||
Market Value of Stock Repurchase Obligation | $ 1,020 | $ 1,010 | |||
Market Value of Stock Repurchase Obligation , % of Revenue | 0.80% | 0.40% | |||
Gain on Debt Extinguishment | $ (62,852) | ||||
Gain on Debt Extinguishment, % of Revenue | (30.50%) | ||||
Other Corporate Expenses | $ 22,801 | $ 21,702 | $ 44,386 | $ 42,521 | |
Other corporate Expenses, % of Revenue | 23.20% | 16.70% | 21.60% | 15.90% | |
Income (loss) from operations, before tax | $ (11,964) | $ (14,825) | $ 53,181 | $ (4,110) | |
Income from Operations, before tax, % of Revenue | (12.20%) | (11.40%) | 58.80% | (1.50%) | |
Unallocated (Income) Expenses | |||||
Business segment | |||||
Gain on Debt Extinguishment | $ (62,852) | ||||
Other Corporate Expenses | $ 22,801 | $ 21,702 | 44,386 | $ 42,521 | |
Income (loss) from operations, before tax | (22,801) | (21,702) | 18,466 | (42,521) | |
Intersegment elimination | |||||
Business segment | |||||
Total Revenues | 0 | 697 | 0 | 1,237 | |
Retail Financial Services | |||||
Business segment | |||||
Total Assets | 336,767 | 524,703 | 336,767 | 524,703 | |
Goodwill | 146,877 | 221,667 | 146,877 | 221,667 | |
Other Intangible Assets | 286 | 1,058 | 286 | 1,058 | |
Total Revenues | $ 74,326 | $ 97,145 | $ 155,695 | $ 200,527 | |
Total Revenues, % of Revenue | 100.00% | 100.00% | 100.00% | 100.00% | |
Provision for loan losses | $ 17,112 | $ 29,555 | $ 29,677 | $ 51,039 | |
Provision for Loan Losses, % of Revenue | 23.00% | 30.50% | 19.10% | 25.50% | |
Other Operating Expenses | $ 41,316 | $ 46,661 | $ 80,054 | $ 90,718 | |
Other Operating Expenses, % of Revenue | 55.60% | 48.00% | 51.40% | 45.20% | |
Operating Gross Profit | $ 15,898 | $ 20,929 | $ 45,964 | $ 58,770 | |
Operating Gross Profit, % of Revenue | 21.40% | 21.50% | 29.50% | 29.30% | |
Interest Expense, net | $ 6,720 | $ 10,041 | $ 14,034 | $ 19,333 | |
Interest Expense, net, % of Revenue | 9.00% | 10.30% | 9.00% | 9.60% | |
Depreciation and Amortization | $ 1,008 | $ 1,109 | $ 1,975 | $ 2,240 | |
Depreciation and Amortization, % of Revenue | 1.40% | 1.10% | 1.30% | 1.10% | |
Loss on sale of subsidiary | $ 1,569 | ||||
Loss on sale of subsidiary, % of Revenue | 1.00% | ||||
Market Value of Stock Repurchase Obligation | $ 1,020 | $ 1,010 | |||
Market Value of Stock Repurchase Obligation , % of Revenue | 1.00% | 0.50% | |||
Income (loss) from operations, before tax | $ 8,170 | $ 8,759 | $ 28,386 | $ 36,187 | |
Income from Operations, before tax, % of Revenue | 11.00% | 9.00% | 18.20% | 18.00% | |
Internet Financial Services | |||||
Business segment | |||||
Total Assets | $ 77,691 | $ 82,602 | $ 77,691 | $ 82,602 | |
Other Intangible Assets | 1,050 | 1,511 | 1,050 | 1,511 | |
Total Revenues | $ 24,003 | $ 33,119 | $ 50,191 | $ 66,171 | |
Total Revenues, % of Revenue | 100.00% | 100.00% | 100.00% | 100.00% | |
Provision for loan losses | $ 13,160 | $ 22,361 | $ 27,070 | $ 40,787 | |
Provision for Loan Losses, % of Revenue | 54.80% | 67.60% | 53.90% | 61.70% | |
Other Operating Expenses | $ 3,835 | $ 7,244 | $ 8,060 | $ 12,564 | |
Other Operating Expenses, % of Revenue | 16.00% | 21.90% | 16.10% | 19.00% | |
Operating Gross Profit | $ 7,008 | $ 3,514 | $ 15,061 | $ 12,820 | |
Operating Gross Profit, % of Revenue | 29.20% | 10.50% | 30.00% | 19.30% | |
Interest Expense, net | $ 4,127 | $ 5,110 | $ 8,276 | $ 10,026 | |
Interest Expense, net, % of Revenue | 17.20% | 15.40% | 16.50% | 15.20% | |
Depreciation and Amortization | $ 214 | $ 286 | $ 456 | $ 570 | |
Depreciation and Amortization, % of Revenue | 0.90% | 0.90% | 0.90% | 0.90% | |
Income (loss) from operations, before tax | $ 2,667 | $ (1,882) | $ 6,329 | $ 2,224 | |
Income from Operations, before tax, % of Revenue | 11.10% | (5.70%) | 12.60% | 3.40% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Income Taxes | ||
Liability recorded for unrecognized tax benefits | $ 191 | $ 0 |
Gross deferred tax assets | 32,280 | 46,441 |
Net deferred tax asset | 1,424 | 1,565 |
Valuation allowance | $ 30,856 | $ 41,276 |
Transactions with Variable In58
Transactions with Variable Interest Entities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Feb. 01, 2016 | Dec. 31, 2015 |
Variable Interest Entities | |||
Accrued maximum exposure on third party consumer loans | $ 36,773 | $ 40,552 | |
Accrual for third-party losses | $ 3,274 | $ 2,610 | |
Disposal Group Disposed Of By Sale Not Discontinued Operations | Florida II | Revolving Credit Facility | |||
Variable Interest Entities | |||
Maximum borrowing capacity | $ 6,000 |
Supplemental Guarantor Inform59
Supplemental Guarantor Information (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
CCFI | |
Supplemental guarantor information | |
Independent assets | $ 0 |
Independent operations | 0 |
Alabama revolving credit facility | |
Supplemental guarantor information | |
Maximum borrowing capacity | 7,000,000 |
Financial guarantee | Guarantor Subsidiaries | 2019 and 2020 Notes | |
Supplemental guarantor information | |
Total net worth requirements | 6,750,000 |
Financial guarantee | Guarantor Subsidiaries | Minimum | 2019 and 2020 Notes | |
Supplemental guarantor information | |
Net worth required to be maintained | 5,000 |
Financial guarantee | Guarantor Subsidiaries | Maximum | 2019 and 2020 Notes | |
Supplemental guarantor information | |
Net worth required to be maintained | $ 1,000,000 |
Supplemental Condensed Consol60
Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information (Details) | Jun. 30, 2016 |
Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information | |
Ownership interest (as a percent) | 100.00% |
Supplemental Condensed Consol61
Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Disposal Group (Details) - USD ($) $ in Thousands | Feb. 01, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Goodwill - Disposal Group | ||||
Goodwill | $ 146,877 | $ 152,568 | $ 221,667 | |
Disposal Group Disposed Of By Sale Not Discontinued Operations | Florida II | ||||
Goodwill - Disposal Group | ||||
Goodwill written-off | $ 5,691 | |||
Goodwill | 25,344 | |||
Loss on sale - Disposal Group | ||||
Pre-tax loss on sale of subsidiary | 1,569 | |||
Tax loss on sale | $ 24,062 |
Supplemental Condensed Consol62
Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Current Assets | |||
Cash and cash equivalents | $ 89,748 | $ 98,941 | |
Restricted cash | 3,300 | 3,460 | |
Finance receivables, net | 101,258 | 119,704 | |
Short-term investments, certificates of deposit | 400 | 1,115 | |
Card related pre-funding and receivables | 1,702 | 1,674 | |
Other current assets | 17,551 | 17,024 | |
Total current assets | 213,959 | 241,918 | |
Noncurrent Assets | |||
Finance receivables, net | 7,967 | 8,797 | |
Leasehold improvements and equipment, net | 40,154 | 46,085 | |
Goodwill | 146,877 | 152,568 | $ 221,667 |
Other intangible assets | 1,336 | 1,913 | 2,569 |
Security deposits | 2,741 | 3,098 | |
Deferred tax asset, net | 1,424 | 5,165 | |
Total assets | 414,458 | 459,544 | $ 607,305 |
Current Liabilities | |||
Accounts payable and accrued liabilities | 29,096 | 34,616 | |
Money orders payable | 7,106 | 11,233 | |
Accrued interest | 4,805 | 6,707 | |
Current portion of capital lease obligation | 1,387 | 1,567 | |
Current portion of lines of credit | 31,359 | ||
Current portion of related party Florida seller notes | 10,097 | ||
Current portion of subsidiary note payable | 8,110 | 211 | |
Deferred revenue | 2,759 | 3,154 | |
Total current liabilities | 84,622 | 67,585 | |
Noncurrent Liabilities | |||
Lease termination payable | 1,400 | 1,322 | |
Capital lease obligation | 783 | 1,485 | |
Stock repurchase obligation | 3,130 | ||
Lines of credit | 2,224 | 26,625 | |
Subsidiary notes payable | 40,565 | 35,506 | |
Senior secured notes | 250,905 | 347,913 | |
Deferred Revenue | 9,900 | ||
Total liabilities | 390,399 | 483,566 | |
Stockholders' Equity (Deficit) | |||
Total stockholders' equity (deficit) | 24,059 | (24,022) | |
Total liabilities and stockholders' equity | 414,458 | 459,544 | |
Reportable legal entities | Community Choice Financial | |||
Noncurrent Assets | |||
Investment in Subsidiaries | 347,308 | 378,548 | |
Total assets | 347,308 | 378,548 | |
Current Liabilities | |||
Accrued interest | 4,600 | 6,420 | |
Current portion of lines of credit | 31,359 | ||
Total current liabilities | 35,959 | 6,420 | |
Noncurrent Liabilities | |||
Lines of credit | 26,625 | ||
Senior secured notes | 250,905 | 347,913 | |
Total liabilities | 286,864 | 380,958 | |
Stockholders' Equity (Deficit) | |||
Total stockholders' equity (deficit) | 60,444 | (2,410) | |
Total liabilities and stockholders' equity | 347,308 | 378,548 | |
Reportable legal entities | Guarantor Subsidiaries | |||
Current Assets | |||
Cash and cash equivalents | 51,898 | 69,986 | |
Restricted cash | 3,300 | 3,460 | |
Finance receivables, net | 79,227 | 96,088 | |
Short-term investments, certificates of deposit | 400 | 1,115 | |
Card related pre-funding and receivables | 1,702 | 1,674 | |
Other current assets | 25,984 | 33,292 | |
Total current assets | 162,511 | 205,615 | |
Noncurrent Assets | |||
Investment in Subsidiaries | 17,156 | ||
Finance receivables, net | 7,967 | 8,797 | |
Leasehold improvements and equipment, net | 40,154 | 43,300 | |
Goodwill | 146,877 | 121,533 | |
Other intangible assets | 1,336 | 1,748 | |
Security deposits | 2,741 | 2,943 | |
Deferred tax asset, net | 1,424 | 5,165 | |
Total assets | 363,010 | 406,257 | |
Current Liabilities | |||
Accounts payable and accrued liabilities | 30,935 | 35,612 | |
Money orders payable | 7,106 | 10,486 | |
Accrued interest | 526 | 6 | |
Current portion of capital lease obligation | 1,387 | 1,447 | |
Current portion of subsidiary note payable | 109 | 211 | |
Deferred revenue | 2,759 | 3,154 | |
Total current liabilities | 42,822 | 50,916 | |
Noncurrent Liabilities | |||
Lease termination payable | 1,400 | 1,266 | |
Capital lease obligation | 783 | 1,430 | |
Lines of credit | 2,224 | ||
Subsidiary notes payable | 1,987 | 931 | |
Deferred Revenue | 9,900 | ||
Total liabilities | 59,116 | 54,543 | |
Stockholders' Equity (Deficit) | |||
Total stockholders' equity (deficit) | 303,894 | 351,714 | |
Total liabilities and stockholders' equity | 363,010 | 406,257 | |
Reportable legal entities | Non-Guarantor Subsidiaries | |||
Current Assets | |||
Cash and cash equivalents | 37,850 | 28,955 | |
Finance receivables, net | 22,031 | 23,616 | |
Other current assets | 1,827 | 2,661 | |
Total current assets | 61,708 | 55,232 | |
Noncurrent Assets | |||
Leasehold improvements and equipment, net | 2,785 | ||
Goodwill | 31,035 | ||
Other intangible assets | 165 | ||
Security deposits | 155 | ||
Total assets | 61,708 | 89,372 | |
Current Liabilities | |||
Accounts payable and accrued liabilities | (67) | 11,012 | |
Money orders payable | 747 | ||
Accrued interest | 2,314 | 1,849 | |
Current portion of capital lease obligation | 120 | ||
Current portion of related party Florida seller notes | 10,097 | ||
Current portion of subsidiary note payable | 8,001 | ||
CCFI funding notes | 5,853 | 5,353 | |
Total current liabilities | 16,101 | 29,178 | |
Noncurrent Liabilities | |||
Lease termination payable | 56 | ||
Capital lease obligation | 55 | ||
Stock repurchase obligation | 3,130 | ||
Subsidiary notes payable | 38,578 | 34,575 | |
Total liabilities | 54,679 | 66,994 | |
Stockholders' Equity (Deficit) | |||
Total stockholders' equity (deficit) | 7,029 | 22,378 | |
Total liabilities and stockholders' equity | 61,708 | 89,372 | |
Eliminations | |||
Current Assets | |||
Other current assets | (10,260) | (18,929) | |
Total current assets | (10,260) | (18,929) | |
Noncurrent Assets | |||
Investment in Subsidiaries | (347,308) | (395,704) | |
Total assets | (357,568) | (414,633) | |
Current Liabilities | |||
Accounts payable and accrued liabilities | (1,772) | (12,008) | |
Accrued interest | (2,635) | (1,568) | |
CCFI funding notes | (5,853) | (5,353) | |
Total current liabilities | (10,260) | (18,929) | |
Noncurrent Liabilities | |||
Total liabilities | (10,260) | (18,929) | |
Stockholders' Equity (Deficit) | |||
Total stockholders' equity (deficit) | (347,308) | (395,704) | |
Total liabilities and stockholders' equity | $ (357,568) | $ (414,633) |
Supplemental Condensed Consol63
Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues: | ||||
Finance receivable fees | $ 57,952 | $ 80,410 | $ 121,836 | $ 163,029 |
Credit service fees | 21,170 | 25,547 | 43,273 | 52,934 |
Check cashing fees | 11,975 | 16,261 | 25,330 | 33,438 |
Card fees | 2,040 | 2,191 | 4,188 | 4,483 |
Other | 5,192 | 5,855 | 11,259 | 12,814 |
Total revenues | 98,329 | 130,264 | 205,886 | 266,698 |
Operating expenses: | ||||
Salaries and benefits | 17,069 | 20,575 | 35,348 | 41,136 |
Provision for loan losses | 30,272 | 51,916 | 56,747 | 91,826 |
Occupancy | 6,578 | 7,719 | 13,238 | 15,296 |
Advertising and marketing | 2,539 | 7,501 | 5,217 | 12,303 |
Lease termination | 1,101 | 826 | 1,101 | 826 |
Depreciation and amortization | 2,540 | 2,491 | 5,274 | 4,884 |
Other | 15,324 | 14,793 | 27,936 | 28,837 |
Total operating expenses | 75,423 | 105,821 | 144,861 | 195,108 |
Operating gross profit | 22,906 | 24,443 | 61,025 | 71,590 |
Corporate expenses | 22,801 | 21,702 | 44,386 | 42,521 |
Depreciation and amortization | 1,222 | 1,395 | 2,431 | 2,810 |
Interest expense, net | 10,847 | 15,151 | 22,310 | 29,359 |
Market Value of Stock Repurchase Obligation | 1,020 | 1,010 | ||
Loss on sale of subsidiary | 1,569 | |||
Gain on debt extinguishment | (62,852) | |||
Total corporate and other expenses | 34,870 | 39,268 | 7,844 | 75,700 |
Income before income taxes | (11,964) | (14,825) | 53,181 | (4,110) |
Provision (benefit) for income taxes | (3,024) | (5,911) | 6,320 | (1,639) |
Net income (loss) | $ (8,940) | $ (8,914) | 46,861 | (2,471) |
Reportable legal entities | Community Choice Financial | ||||
Operating expenses: | ||||
Interest expense, net | 17,996 | 25,239 | ||
Interest expense allocation | (17,996) | (25,239) | ||
Gain on debt extinguishment | (62,852) | |||
Total corporate and other expenses | (62,852) | |||
Income before income taxes | 62,852 | |||
Provision (benefit) for income taxes | 7,469 | |||
Net income (loss) | 55,383 | |||
Reportable legal entities | Guarantor Subsidiaries | ||||
Revenues: | ||||
Finance receivable fees | 93,282 | 124,451 | ||
Credit service fees | 43,273 | 52,934 | ||
Check cashing fees | 24,785 | 30,893 | ||
Card fees | 4,150 | 4,213 | ||
Dividend | 3,000 | 10,000 | ||
Other | 11,541 | 13,087 | ||
Total revenues | 180,031 | 235,578 | ||
Operating expenses: | ||||
Salaries and benefits | 34,735 | 37,740 | ||
Provision for loan losses | 39,337 | 72,065 | ||
Occupancy | 12,998 | 13,531 | ||
Advertising and marketing | 5,213 | 13,099 | ||
Lease termination | 1,097 | 788 | ||
Depreciation and amortization | 5,196 | 4,405 | ||
Other | 27,436 | 31,235 | ||
Total operating expenses | 126,012 | 172,863 | ||
Operating gross profit | 54,019 | 62,715 | ||
Corporate expenses | 44,061 | 41,711 | ||
Intercompany management fee | (1,381) | (1,794) | ||
Depreciation and amortization | 2,423 | 2,390 | ||
Interest expense, net | 442 | 949 | ||
Interest expense allocation | 17,996 | 23,878 | ||
Loss on sale of subsidiary | 1,569 | |||
Total corporate and other expenses | 65,110 | 67,134 | ||
Income before income taxes | (11,091) | (4,419) | ||
Provision (benefit) for income taxes | (1,318) | (1,763) | ||
Net income (loss) | (9,773) | (2,656) | ||
Reportable legal entities | Non-Guarantor Subsidiaries | ||||
Revenues: | ||||
Finance receivable fees | 28,554 | 38,578 | ||
Check cashing fees | 545 | 7,145 | ||
Card fees | 38 | 270 | ||
Other | 297 | 1,616 | ||
Total revenues | 29,434 | 47,609 | ||
Operating expenses: | ||||
Salaries and benefits | 613 | 3,396 | ||
Provision for loan losses | 17,410 | 19,761 | ||
Occupancy | 251 | 1,765 | ||
Advertising and marketing | 4 | 441 | ||
Lease termination | 4 | 38 | ||
Depreciation and amortization | 78 | 479 | ||
Other | 500 | 2,202 | ||
Total operating expenses | 18,860 | 28,082 | ||
Operating gross profit | 10,574 | 19,527 | ||
Corporate expenses | 325 | 931 | ||
Intercompany management fee | 1,381 | 1,794 | ||
Depreciation and amortization | 8 | 420 | ||
Interest expense, net | 4,440 | 3,702 | ||
Interest expense allocation | 1,361 | |||
Market Value of Stock Repurchase Obligation | 1,010 | |||
Total corporate and other expenses | 6,154 | 9,218 | ||
Income before income taxes | 4,420 | 10,309 | ||
Provision (benefit) for income taxes | 525 | 4,111 | ||
Net income (loss) | 3,895 | 6,198 | ||
Eliminations | ||||
Revenues: | ||||
Check cashing fees | (4,600) | |||
Dividend | (3,000) | (10,000) | ||
Other | (579) | (1,889) | ||
Total revenues | (3,579) | (16,489) | ||
Operating expenses: | ||||
Occupancy | (11) | |||
Advertising and marketing | (1,237) | |||
Other | (4,600) | |||
Total operating expenses | (11) | (5,837) | ||
Operating gross profit | (3,568) | (10,652) | ||
Corporate expenses | (121) | |||
Interest expense, net | (568) | (531) | ||
Total corporate and other expenses | (568) | (652) | ||
Income before income taxes | (3,000) | (10,000) | ||
Provision (benefit) for income taxes | (356) | (3,987) | ||
Net income (loss) | $ (2,644) | $ (6,013) |
Supplemental Condensed Consol64
Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Condensed Consolidating Statement of Cash Flows | ||
Net cash provided by (used in) operating activities | $ 54,274 | $ 97,277 |
Cash flows from investing activities | ||
Net receivables originated | (42,058) | (81,480) |
Net acquired assets, net of cash | (296) | (810) |
Purchase of leasehold improvements and equipment | (4,904) | (11,624) |
Net cash used in investing activities | (47,258) | (93,914) |
Cash flows from financing activities | ||
Repurchase of senior secured notes | (36,437) | |
Proceeds from subsidiary note | 13,765 | 2,400 |
Payments on subsidiary note | (192) | (200) |
Payments on related party Florida seller notes | (1,500) | |
Payments on capital lease obligations, net | (717) | (998) |
Proceeds from lines of credit | 6,750 | 31,700 |
Debt issuance costs | 622 | (1,084) |
Net cash provided by (used in) financing activities | (16,209) | 30,318 |
Net increase (decrease) in cash and cash equivalents | (9,193) | 33,681 |
Cash and cash equivalents: | ||
Beginning | 98,941 | 77,734 |
Ending | 89,748 | 111,415 |
Reportable legal entities | Community Choice Financial | ||
Condensed Consolidating Statement of Cash Flows | ||
Net cash provided by (used in) operating activities | 30,283 | 1,157 |
Cash flows from financing activities | ||
Repurchase of senior secured notes | (36,437) | |
Proceeds from lines of credit | 4,500 | 31,700 |
Intercompany activities | (31,985) | |
Debt issuance costs | 1,654 | (872) |
Net cash provided by (used in) financing activities | (30,283) | (1,157) |
Reportable legal entities | Guarantor Subsidiaries | ||
Condensed Consolidating Statement of Cash Flows | ||
Net cash provided by (used in) operating activities | 3,252 | 61,545 |
Cash flows from investing activities | ||
Net receivables originated | (20,100) | (64,021) |
Net acquired assets, net of cash | (296) | (810) |
Purchase of leasehold improvements and equipment | (4,895) | (11,114) |
Net cash used in investing activities | (25,291) | (75,945) |
Cash flows from financing activities | ||
Proceeds from subsidiary note | 1,165 | |
Payments on subsidiary note | (192) | (200) |
Proceeds on CCFI Funding Notes | (500) | |
Payments on capital lease obligations, net | (707) | (946) |
Proceeds from lines of credit | 2,250 | |
Intercompany activities | 31,985 | |
Debt issuance costs | (46) | (144) |
Net cash provided by (used in) financing activities | 1,970 | 30,695 |
Net increase (decrease) in cash and cash equivalents | (20,069) | 16,295 |
Cash and cash equivalents: | ||
Beginning | 69,986 | 63,372 |
Ending | 49,917 | 79,667 |
Reportable legal entities | Non-Guarantor Subsidiaries | ||
Condensed Consolidating Statement of Cash Flows | ||
Net cash provided by (used in) operating activities | 20,739 | 34,575 |
Cash flows from investing activities | ||
Net receivables originated | (21,958) | (17,459) |
Purchase of leasehold improvements and equipment | (9) | (510) |
Net cash used in investing activities | (21,967) | (17,969) |
Cash flows from financing activities | ||
Proceeds from subsidiary note | 12,600 | 2,400 |
Proceeds on CCFI Funding Notes | 500 | |
Payments on related party Florida seller notes | (1,500) | |
Payments on capital lease obligations, net | (10) | (52) |
Debt issuance costs | (986) | (68) |
Net cash provided by (used in) financing activities | 12,104 | 780 |
Net increase (decrease) in cash and cash equivalents | 10,876 | 17,386 |
Cash and cash equivalents: | ||
Beginning | 28,955 | 14,362 |
Ending | $ 39,831 | $ 31,748 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | Jul. 01, 2016USD ($) | Jun. 30, 2016location |
QC | ||
Subsequent Events | ||
Number of retail locations acquired | 38 | |
Number of retail location acquired with payment of consideration | 33 | |
QC Financial Services of California, Inc | ||
Subsequent Events | ||
Number of retail locations acquired | 60 | |
Subsequent Event | QC | ||
Subsequent Events | ||
Purchase price | $ | $ 28,035 |