Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 30, 2017 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Enova International, Inc. | |
Entity Central Index Key | 1,529,864 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Trading Symbol | ENVA | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 33,464,780 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Assets | |||
Cash and cash equivalents | $ 110,054 | $ 39,934 | $ 45,681 |
Restricted cash and cash equivalents | 29,866 | 26,306 | 39,272 |
Loans and finance receivables, net | 637,736 | 561,550 | 542,865 |
Income taxes receivable | 9,319 | ||
Other receivables and prepaid expenses | 23,796 | 19,524 | 18,649 |
Property and equipment, net | 46,557 | 47,100 | 47,486 |
Goodwill | 267,015 | 267,010 | 267,012 |
Intangible assets, net | 4,593 | 5,404 | 5,675 |
Other assets | 10,842 | 11,051 | 8,439 |
Total assets | 1,139,778 | 977,879 | 975,079 |
Liabilities and Stockholders' Equity | |||
Accounts payable and accrued expenses | 78,897 | 71,671 | 85,433 |
Income taxes currently payable | 282 | 5,149 | |
Deferred tax liabilities, net | 20,681 | 14,316 | 16,233 |
Long-term debt | 765,395 | 649,911 | 635,179 |
Total liabilities | 864,973 | 736,180 | 741,994 |
Commitments and contingencies (Note 8) | |||
Stockholders' equity: | |||
Common stock, $0.00001 par value, 250,000,000 shares authorized, 33,828,668, 33,260,017 and 33,364,525 shares issued and 33,608,611, 33,214,594 and 33,293,100 outstanding as of September 30, 2017 and 2016 and December 31, 2016, respectively | 0 | 0 | 0 |
Preferred stock, $0.00001 par value, 25,000,000 shares authorized, no shares issued and outstanding | |||
Additional paid in capital | 26,749 | 18,446 | 16,338 |
Retained earnings | 257,812 | 235,455 | 226,741 |
Accumulated other comprehensive loss | (7,017) | (11,578) | (9,692) |
Treasury stock, at cost (220,057, 45,423 and 71,425 shares as of September 30, 2017 and 2016 and December 31, 2016, respectively) | (2,739) | (624) | (302) |
Total stockholders' equity | 274,805 | 241,699 | 233,085 |
Total liabilities and stockholders' equity | $ 1,139,778 | $ 977,879 | $ 975,079 |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Restricted cash and cash equivalents | $ 29,866 | $ 26,306 | $ 39,272 |
Loans and finance receivables, gross | 742,796 | 660,495 | 637,612 |
Allowance for loan losses | 105,060 | 98,945 | 94,747 |
Long-term debt | $ 186,533 | $ 165,419 | $ 136,953 |
Common stock, par value per share | $ 0.00001 | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 250,000,000 | 250,000,000 | 250,000,000 |
Common stock, shares issued | 33,828,668 | 33,364,525 | 33,260,017 |
Common stock, shares outstanding | 33,608,611 | 33,293,100 | 33,214,594 |
Preferred stock, par value per share | $ 0.00001 | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Treasury stock, shares | 220,057 | 71,425 | 45,423 |
Variable Interest Entity, Primary Beneficiary | |||
Restricted cash and cash equivalents | $ 22,161 | $ 19,468 | $ 18,119 |
Loans and finance receivables, gross | 296,478 | 234,497 | 191,534 |
Allowance for loan losses | 22,115 | 17,731 | 15,518 |
Long-term debt | 186,533 | 165,419 | 136,953 |
Unamortized debt issuance cost | $ 762 | $ 1,869 | $ 2,416 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Revenue | $ 217,878 | $ 195,943 | $ 600,045 | $ 543,131 |
Cost of Revenue | 107,341 | 95,391 | 269,087 | 230,421 |
Gross Profit | 110,537 | 100,552 | 330,958 | 312,710 |
Expenses | ||||
Marketing | 27,000 | 26,722 | 69,993 | 73,500 |
Operations and technology | 27,163 | 20,637 | 72,512 | 61,706 |
General and administrative | 25,164 | 21,307 | 77,105 | 76,747 |
Depreciation and amortization | 3,533 | 3,789 | 10,396 | 12,004 |
Total Expenses | 82,860 | 72,455 | 230,006 | 223,957 |
Income from Operations | 27,677 | 28,097 | 100,952 | 88,753 |
Interest expense, net | (18,292) | (16,117) | (52,526) | (48,058) |
Foreign currency transaction gain | 65 | 145 | 354 | 2,184 |
Loss on early extinguishment of debt | (14,927) | (14,927) | ||
(Loss) Income before Income Taxes | (5,477) | 12,125 | 33,853 | 42,879 |
(Benefit from) provision for income taxes | (2,109) | 4,288 | 11,496 | 16,991 |
Net (Loss) Income | $ (3,368) | $ 7,837 | $ 22,357 | $ 25,888 |
Net (loss) income per common share: | ||||
Basic | $ (0.10) | $ 0.24 | $ 0.67 | $ 0.78 |
Diluted | $ (0.10) | $ 0.23 | $ 0.66 | $ 0.78 |
Weighted average common shares outstanding: | ||||
Basic | 33,670 | 33,211 | 33,533 | 33,176 |
Diluted | 33,670 | 33,558 | 34,119 | 33,360 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Statement Of Income And Comprehensive Income [Abstract] | |||||
Net (Loss) Income | $ (3,368) | $ 7,837 | $ 22,357 | $ 25,888 | |
Other comprehensive gain (loss), net of tax: | |||||
Foreign currency translation gain (loss) | [1] | 2,052 | (1,245) | 4,561 | (5,070) |
Total other comprehensive gain (loss), net of tax | 2,052 | (1,245) | 4,561 | (5,070) | |
Comprehensive (Loss) Income | $ (1,316) | $ 6,592 | $ 26,918 | $ 20,818 | |
[1] | Net of tax (provision) benefit of $(1,161) and $707 for the three months ended September 30, 2017 and 2016, respectively, and $(2,578) and $2,860 for the nine months ended September 30, 2017 and 2016, respectively. |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Tax (provision) benefit of foreign currency translation (gain) loss | $ (1,161) | $ 707 | $ (2,578) | $ 2,860 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | |
Balance at Dec. 31, 2015 | $ 205,968 | $ 9,924 | $ 200,853 | $ (4,622) | $ (187) | ||
Balance, in shares at Dec. 31, 2015 | 33,151,000 | (29,000) | |||||
Stock-based compensation expense | 6,414 | 6,414 | |||||
Shares issued under stock-based plans | 109,000 | ||||||
Net income | 25,888 | 25,888 | |||||
Foreign currency translation gain (loss), net of tax | (5,070) | [1] | (5,070) | ||||
Purchases of treasury shares, at cost | (115) | $ (115) | |||||
Treasury Stock Shares Acquired | (16,000) | ||||||
Balance at Sep. 30, 2016 | $ 233,085 | 16,338 | 226,741 | (9,692) | $ (302) | ||
Balance, in shares at Sep. 30, 2016 | 33,260,017 | 33,260,000 | (45,000) | ||||
Balance at Dec. 31, 2016 | $ 241,699 | 18,446 | 235,455 | (11,578) | $ (624) | ||
Balance, in shares at Dec. 31, 2016 | 33,364,525 | 33,365,000 | (71,000) | ||||
Stock-based compensation expense | $ 8,303 | 8,303 | |||||
Shares issued under stock-based plans | 464,000 | ||||||
Net income | 22,357 | 22,357 | |||||
Foreign currency translation gain (loss), net of tax | 4,561 | [1] | 4,561 | ||||
Purchases of treasury shares, at cost | (2,115) | $ (2,115) | |||||
Treasury Stock Shares Acquired | (149,000) | ||||||
Balance at Sep. 30, 2017 | $ 274,805 | $ 26,749 | $ 257,812 | $ (7,017) | $ (2,739) | ||
Balance, in shares at Sep. 30, 2017 | 33,828,668 | 33,829,000 | (220,000) | ||||
[1] | Net of tax (provision) benefit of $(1,161) and $707 for the three months ended September 30, 2017 and 2016, respectively, and $(2,578) and $2,860 for the nine months ended September 30, 2017 and 2016, respectively. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash Flows from Operating Activities | ||
Net income | $ 22,357 | $ 25,888 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 10,396 | 12,004 |
Amortization of deferred loan costs and debt discount | 4,515 | 5,056 |
Cost of revenue | 269,087 | 230,421 |
Stock-based compensation expense | 8,303 | 6,414 |
Loss on early extinguishment of debt | 14,927 | |
Deferred income taxes, net | 3,802 | (1,364) |
Other | (151) | |
Changes in operating assets and liabilities: | ||
Finance and service charges on loans and finance receivables | (10,232) | (12,043) |
Other receivables and prepaid expenses | (3,290) | 1,700 |
Accounts payable and accrued expenses | 1,033 | 22,130 |
Current income taxes | (9,601) | 10,652 |
Net cash provided by operating activities | 311,297 | 300,707 |
Cash Flows from Investing Activities | ||
Loans and finance receivables originated or acquired | (998,333) | (987,255) |
Loans and finance receivables repaid | 672,474 | 651,865 |
Change in restricted cash | (3,030) | (32,776) |
Purchases of property and equipment | (10,804) | (11,466) |
Other investing activities | 1,798 | 72 |
Net cash used in investing activities | (337,895) | (379,560) |
Cash Flows from Financing Activities | ||
Borrowings under revolving line of credit | 30,000 | 45,000 |
Repayments under revolving line of credit | (30,000) | (88,400) |
Borrowings under securitization facility | 137,200 | 218,961 |
Repayments under securitization facility | (116,085) | (82,008) |
Issuance of senior notes | 250,000 | |
Repayments of senior notes | (155,000) | |
Debt issuance costs paid | (9,564) | (3,516) |
Debt prepayment penalty paid | (11,335) | |
Treasury shares purchased | (2,115) | (115) |
Net cash provided by financing activities | 93,101 | 89,922 |
Effect of exchange rates on cash | 3,617 | (7,454) |
Net increase in cash and cash equivalents | 70,120 | 3,615 |
Cash and cash equivalents at beginning of year | 39,934 | 42,066 |
Cash and cash equivalents at end of period | 110,054 | 45,681 |
Supplemental Disclosures | ||
Loans and finance receivables renewed | $ 234,258 | $ 238,696 |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 1. Significant Accounting Policies Basis of Presentation On September 7, 2011, Cash America International, Inc. (“Cash America,” now known as FirstCash, Inc. due to its merger with First Cash Financial Services, Inc. on September 1, 2016), formed a new company, Enova International, Inc. (the “Company”). On September 13, 2011, Cash America contributed to the Company all of the stock of its wholly-owned subsidiary, Enova Online Services, Inc., in exchange for 33 million shares of the Company’s common stock. The Company became an independent, publicly traded company on November 13, 2014 when Cash America completed the tax-free spin-off of approximately 80% of the outstanding shares of the Company to holders of Cash America’s common stock (the “Spin-off”). Cash America (and then First Cash) retained approximately 20% of the Company’s stock but completed the sale of its entire holding in the Company as of December 6, 2016. The consolidated financial statements of the Company reflect the historical results of operations and cash flows of the Company during each respective period. The financial statements include goodwill and intangible assets arising from businesses previously acquired. The Company operates an internet-based lending platform to serve customers in need of cash to fulfill their financial responsibilities. Through a network of direct and indirect marketing channels, the Company offers funds to its customers through a variety of unsecured loan and finance receivable products. The business is operated primarily through the internet to provide convenient, fully-automated financial solutions to its customers. The Company originates, arranges, guarantees or purchases consumer loans and provides financing to small businesses through a line of credit account, installment loan or receivables purchase agreement product (“RPAs”). Consumer loans include short-term loans, line of credit accounts and installment loans. RPAs represent a right to receive future receivables from a small business. “Loans and finance receivables” include consumer loans, small business lines of credit, small business installment loans and RPAs. The Company consolidates any variable interest entity (“VIE”) where it has been determined it is the primary beneficiary. The primary beneficiary is the entity which has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance as well as the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE. The financial statements presented as of September 30, 2017 and 2016 and for the three and nine-month periods ended September 30, 2017 and 2016 are unaudited but, in management’s opinion, include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for such interim periods. Operating results for three and nine-month periods are not necessarily indicative of the results that may be expected for the full fiscal year. These financial statements and related notes should be read in conjunction with the Company’s audited consolidated financial statements as of December 31, 2016 and 2015 and for the years ended December 31, 2016, 2015 and 2014 and related notes, which are included on Form 10-K filed with the SEC on February 24, 2017. Restricted Cash The Company includes funds to be used for future debt payments relating to its securitization transactions and escrow deposits in restricted cash and cash equivalents. Revenue Recognition The Company recognizes revenue based on the financing products and services it offers and on loans it acquires. “Revenue” in the consolidated statements of income includes: interest income, finance charges, fees for services provided through the Company’s credit services organization and credit access business programs (“CSO programs”) (“CSO fees”), revenue on RPAs, service charges, draw fees, minimum billing fees, purchase fees, late fees and non-sufficient funds fees as permitted by applicable laws and pursuant to the agreement with the customer. For short-term loans that the Company offers, interest and finance charges are recognized on an effective yield basis over the term of the loan. For line of credit accounts, interest is recognized over the reporting period based upon the balance outstanding and the contractual interest rate, draw fees are recognized on an effective yield basis over the estimated outstanding period of the draw, and minimum billing fees are recognized when assessed to the customer. For installment loans, interest is recognized on an effective yield basis over the term of the loan. For RPAs, revenue and purchase fees are recognized on an effective yield basis over the projected delivery term of the agreements and fees are recognized when assessed. CSO fees are recognized on an effective yield basis over the term of the loan. Late and nonsufficient funds fees are recognized when assessed to the customer. Direct costs associated with originating loans and purchasing RPAs, such as third-party customer acquisition costs, are deferred and amortized against revenue on an effective yield basis over the term of the loan or Goodwill Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination. In accordance with Accounting Standards Codification (“ASC”) 350, Goodwill, The Company first assesses qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. In assessing the qualitative factors, management considers relevant events and circumstances including but not limited to macroeconomic conditions, industry and market environment, overall financial performance of the Company, cash flow from operating activities, market capitalization and stock price. If the Company determines that the two-step quantitative impairment test is required, management uses the income approach to complete its annual goodwill assessment. The income approach uses future cash flows and estimated terminal values for the Company that are discounted using a market participant perspective to determine the fair value, which is then compared to the carrying value to determine if there is impairment. The income approach includes assumptions about revenue growth rates, operating margins and terminal growth rates discounted by an estimated weighted-average cost of capital derived from other publicly-traded companies that are similar but not identical from an operational and economic standpoint. The Company completed its annual assessment of goodwill as of June 30, 2017 based on qualitative factors and determined that the fair value of its goodwill exceeded carrying value, and, as a result, no impairment existed at that date. Although no goodwill impairment was noted, there can be no assurances that future goodwill impairments will not occur. Adopted In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Improvements to Employee Share-Based Payment Accounting In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) Accounting Standards to be Adopted in Future Periods In May 2017, the FASB issued ASU 2017-09, Compensation–Stock Compensation (Topic 718): Scope of Modification Accounting In January 2017, the FASB issued ASU 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets, Revenue from Contracts with Customers (Topic 606) In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) – Clarifying the Definition of a Business In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash Statement of Cash Flows, In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016‑01”), which requires that equity investments, except for those accounted for under the equity method or those that result in consolidation of the investee, be measured at fair value, with subsequent changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. ASU 2016-01 also impacts the presentation and disclosure requirements for financial instruments. ASU 2016-01 is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted only for certain provisions. The Company does not expect that the adoption of ASU 2016-01 will have a material effect on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. Deferral of the Effective Date Principal versus Agent Considerations (Reporting Revenue Gross versus Net) Identifying Performance Obligations and Licensing Narrow-Scope Improvements and Practical Expedients, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers The Company has completed its initial assessment of the guidance and determined its loan and finance receivables are excluded from the scope of ASU 2014-09. As a result of this scope exception, the Company has concluded the impact to the consolidated financial statements will not be material in the period of adoption and in future periods. The Company is finalizing its assessment of ASU 2014-09 and the impact on its financial statement disclosures Out-of-Period Adjustment In a review of marketing expenses related to the origination of loans, the Company determined during the quarter that certain amounts should be deferred over the life the corresponding loans. The Company recorded a reduction to revenue and marketing expense of $0.7 million and $1.9 million, respectively, in the third quarter of 2017 as an out-of-period adjustment related to amounts from prior periods previously recognized as expense. The Company believes this adjustment was not material to the current period or any previously issued financial statements. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | 2. Acquisitions On June 23, 2015, the Company completed the purchase of certain assets of a company operating as The Business Backer, LLC, which purchases discounted future accounts receivables from small businesses in the United States through RPAs, which provide working capital for small businesses. The total consideration of $26.4 million was comprised of $17.7 million in cash at closing, a $3.0 million promissory note (included in “Accounts payable and accrued expenses” in the consolidated balance sheets) and estimated contingent consideration of $5.7 million based on future earn-out opportunities. The contingent purchase consideration was recorded at its estimated fair value at the date of acquisition based upon the Company’s assessment of the probable earnings attributable to the business as defined in the purchase agreement. To the extent operating results exceed the Company’s estimate, additional contingent consideration would be due, however the total consideration paid may not exceed $71 million. The contingent purchase consideration is revalued each reporting period with changes in fair value of the contingent consideration obligations recognized as a gain or loss on fair value remeasurement in our consolidated statements of income. The fair value of the contingent purchase consideration was remeasured as of December 31, 2016 and a gain from the fair value remeasurement of $3.3 million was recognized. There was no change in fair value measurement of contingent consideration for the three and nine months ended September 30, 2017. This purchase was not material to the Company’s consolidated financial statements. The operating results of the purchased assets, which were not material, have been included in the Company’s consolidated financial statements from the date of acquisition. |
Loans and Finance Receivables,
Loans and Finance Receivables, Credit Quality Information and Allowances and Liabilities for Estimated Losses on Loans and Finance Receivables | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Loans and Finance Receivables, Credit Quality Information and Allowances and Liabilities for Estimated Losses on Loans and Finance Receivables | 3. Loans and Finance Receivables, Credit Quality Information and Allowances and Liabilities for Estimated Losses on Loans and Finance Receivables Revenue generated from the Company’s loans and finance receivables for the three and nine months ended September 30, 2017 and 2016 was as follows (dollars in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Short-term loans $ 49,875 $ 51,999 $ 144,074 $ 146,237 Line of credit accounts 68,889 59,090 187,172 158,338 Installment loans and RPAs 98,929 84,823 268,069 237,320 Total loans and finance receivables revenue 217,693 195,912 599,315 541,895 Other 185 31 730 1,236 Total revenue $ 217,878 $ 195,943 $ 600,045 $ 543,131 Current and Delinquent Loans and Finance Receivables The Company classifies its loans and finance receivables as either current or delinquent. Short-term loans are considered delinquent when payment of an amount due is not made as of the due date. If a line of credit account or installment loan customer misses one payment, that payment is considered delinquent and the balance of the loan is considered current. If a line of credit account or installment loan customer does not make two consecutive payments, the entire account or loan is classified as delinquent and placed on a non-accrual status. The Company allows for normal payment processing time before considering a loan delinquent but does not provide for any additional grace period. The Company does not accrue interest on delinquent loans and does not resume accrual of interest on a delinquent loan unless it is returned to current status. In addition, delinquent loans generally may not be renewed, and if, during its attempt to collect on a delinquent loan, the Company allows additional time for payment through a payment plan or a promise to pay, it is still considered delinquent. Generally, all payments received are first applied against accrued but unpaid interest and fees and then against the principal balance of the loan. Allowance and Liability for Estimated Losses on Loans and Finance Receivables The Company monitors the performance of its loan and finance receivable portfolios and maintains either an allowance or liability for estimated losses on loans and finance receivables (including revenue, fees and/or interest) at a level estimated to be adequate to absorb losses inherent in the portfolio. The allowance for losses on the Company’s owned loans and finance receivables reduces the outstanding loans and finance receivables balance in the consolidated balance sheets. The liability for estimated losses related to loans guaranteed under its CSO programs is initially recorded at fair value and is included in “Accounts payable and accrued expenses” in the consolidated balance sheets. In determining the allowance or liability for estimated losses on loans and finance receivables, the Company applies a documented systematic methodology. In calculating the allowance or liability for receivable losses, outstanding loans and finance receivables are divided into discrete groups of short-term loans, line of credit accounts, installment loans and RPAs and are analyzed as current or delinquent. Increases in either the allowance or the liability, net of charge-offs and recoveries, are recorded as a “Cost of revenue” in the consolidated statements of income. The allowance or liability for short-term loans classified as current is based on historical loss rates adjusted for recent default trends for current loans. For delinquent short-term loans, the allowance or liability is based on a six-month rolling average of loss rates by stage of collection. For line of credit account, installment loan and RPA portfolios, the Company generally uses either a migration analysis or roll-rate based methodology to estimate losses inherent in the portfolio. The allowance or liability calculation under the migration analysis and roll-rate methodology is based on historical charge-off experience and the loss emergence period, which represents the average amount of time between the first occurrence of a loss event and the charge-off of a loan or RPA. The factors the Company considers to assess the adequacy of the allowance or liability include past due performance, historical behavior of monthly vintages, underwriting changes and recent trends in delinquency in the migration analysis. The roll-rate methodology is based on delinquency status, payment history and recency factors to estimate future charge-offs. The Company fully reserves for loans and finance receivables once the receivable or a portion of the receivable has been classified as delinquent for 60 consecutive days and generally charges off loans and finance receivables between 60 – 65 days delinquent. If a loan or finance receivable is deemed uncollectible before it is fully reserved, it is charged off at that point. Loans and finance receivables classified as delinquent generally have an age of one to 64 days from the date any portion of the receivable became delinquent, as defined above. Recoveries on loans and finance receivables previously charged to the allowance are credited to the allowance when collected. The components of Company-owned loans and finance receivables at September 30, 2017 and 2016 and December 31, 2016 were as follows (dollars in thousands): As of September 30, 2017 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Current receivables $ 40,588 $ 146,891 $ 480,522 $ 668,001 Delinquent receivables: Delinquent payment amounts (1) — 5,913 3,382 9,295 Receivables on non-accrual status 27,131 1,885 36,484 65,500 Total delinquent receivables 27,131 7,798 39,866 74,795 Total loans and finance receivables, gross 67,719 154,689 520,388 742,796 Less: Allowance for losses (19,161 ) (26,810 ) (59,089 ) (105,060 ) Loans and finance receivables, net $ 48,558 $ 127,879 $ 461,299 $ 637,736 As of September 30, 2016 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Current receivables $ 35,815 $ 120,951 $ 412,010 $ 568,776 Delinquent receivables: Delinquent payment amounts (1) — 4,975 1,721 6,696 Receivables on non-accrual status 24,310 6,462 31,368 62,140 Total delinquent receivables 24,310 11,437 33,089 68,836 Total loans and finance receivables, gross 60,125 132,388 445,099 637,612 Less: Allowance for losses (17,726 ) (26,795 ) (50,226 ) (94,747 ) Loans and finance receivables, net $ 42,399 $ 105,593 $ 394,873 $ 542,865 As of December 31, 2016 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Current receivables $ 35,516 $ 130,576 $ 413,638 $ 579,730 Delinquent receivables: Delinquent payment amounts (1) — 4,560 2,110 6,670 Receivables on non-accrual status 27,489 9,047 37,559 74,095 Total delinquent receivables 27,489 13,607 39,669 80,765 Total loans and finance receivables, gross 63,005 144,183 453,307 660,495 Less: Allowance for losses (17,770 ) (26,594 ) (54,581 ) (98,945 ) Loans and finance receivables, net $ 45,235 $ 117,589 $ 398,726 $ 561,550 (1) Represents the delinquent portion of installment loans and line of credit account balances for customers that have only missed one payment and RPA customers who have not delivered agreed upon receivables. See “Current and Delinquent Loans and Finance Receivables” above for additional information. Changes in the allowance for losses for the Company-owned loans and finance receivables and the liability for losses on the Company’s guarantees of third-party lender-owned loans during the three and nine months ended September 30, 2017 and 2016 were as follows (dollars in thousands): Three Months Ended September 30, 2017 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Allowance for losses for Company-owned loans and finance receivables: Balance at beginning of period $ 15,688 $ 22,847 $ 45,304 $ 83,839 Cost of revenue 23,724 23,439 60,102 107,265 Charge-offs (25,521 ) (22,708 ) (57,228 ) (105,457 ) Recoveries 5,082 3,232 10,630 18,944 Effect of foreign currency translation 188 — 281 469 Balance at end of period $ 19,161 $ 26,810 $ 59,089 $ 105,060 Liability for third-party lender-owned loans: Balance at beginning of period $ 1,761 $ — $ 180 $ 1,941 Increase (decrease) in liability 125 — (49 ) 76 Balance at end of period $ 1,886 $ — $ 131 $ 2,017 Three Months Ended September 30, 2016 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Allowance for losses for Company-owned loans and finance receivables: Balance at beginning of period $ 13,354 $ 18,029 $ 42,437 $ 73,820 Cost of revenue 20,464 29,739 45,293 95,496 Charge-offs (21,301 ) (24,639 ) (44,804 ) (90,744 ) Recoveries 5,345 3,666 7,421 16,432 Effect of foreign currency translation (136 ) — (121 ) (257 ) Balance at end of period $ 17,726 $ 26,795 $ 50,226 $ 94,747 Liability for third-party lender-owned loans: Balance at beginning of period $ 1,392 $ — $ 441 $ 1,833 Increase (decrease) in liability 66 — (172 ) (106 ) Balance at end of period $ 1,458 $ — $ 269 $ 1,727 Nine Months Ended September 30, 2017 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Allowance for losses for Company-owned loans and finance receivables: Balance at beginning of period $ 17,770 $ 26,594 $ 54,581 $ 98,945 Cost of revenue 55,865 63,138 150,063 269,066 Charge-offs (70,962 ) (73,252 ) (177,002 ) (321,216 ) Recoveries 16,009 10,330 30,782 57,121 Effect of foreign currency translation 479 — 665 1,144 Balance at end of period $ 19,161 $ 26,810 $ 59,089 $ 105,060 Liability for third-party lender-owned loans: Balance at beginning of period $ 1,716 $ — $ 280 $ 1,996 Increase (decrease) in liability 170 — (149 ) 21 Balance at end of period $ 1,886 $ — $ 131 $ 2,017 Nine Months Ended September 30, 2016 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Allowance for losses for Company-owned loans and finance receivables: Balance at beginning of period $ 14,652 $ 15,727 $ 36,943 $ 67,322 Cost of revenue 47,860 63,461 119,128 230,449 Charge-offs (59,664 ) (63,236 ) (127,473 ) (250,373 ) Recoveries 15,448 10,843 21,217 47,508 Effect of foreign currency translation (570 ) — 411 (159 ) Balance at end of period $ 17,726 $ 26,795 $ 50,226 $ 94,747 Liability for third-party lender-owned loans: Balance at beginning of period $ 1,298 $ — $ 458 $ 1,756 Increase (decrease) in liability 160 — (189 ) (29 ) Balance at end of period $ 1,458 $ — $ 269 $ 1,727 Guarantees of Consumer Loans In connection with its CSO programs, the Company guarantees consumer loan payment obligations to unrelated third-party lenders for short-term and installment loans and is required to purchase any defaulted loans it has guaranteed. The guarantee represents an obligation to purchase specific loans that go into default. As of September 30, 2017 and 2016 and December 31, 2016, the amount of consumer loans guaranteed by the Company was $28.9 million, $29.7 million and $32.2 million, respectively, representing amounts due under consumer loans originated by third-party lenders under the CSO programs. The estimated fair value of the liability for estimated losses on consumer loans guaranteed by the Company of $2.0 million, $1.7 million and $2.0 million, as of September 30, 2017 and 2016 and December 31, 2016, respectively, is included in “Accounts payable and accrued expenses” in the consolidated balance sheets. Bank Program Loans In order to leverage its online lending platform, the Company launched a program with a bank in 2016 to provide technology, marketing services, and loan servicing for near-prime unsecured consumer installment loans. Under the program, the Company receives marketing and servicing fees while the bank receives an origination fee. The bank has the ability to sell the loans it originates to the Company. The Company does not guarantee the performance of the loans originated by the bank. |
Investment in Unconsolidated In
Investment in Unconsolidated Investee | 9 Months Ended |
Sep. 30, 2017 | |
Investments All Other Investments [Abstract] | |
Investment in Unconsolidated Investee | 4. Investment in Unconsolidated Investee The Company records an investment in the preferred stock of a privately-held developing financial services entity under the cost method. The carrying value of the Company’s investment in this unconsolidated investee was $6.7 million as of September 30, 2017 and 2016 and December 31, 2016, and was held in “Other assets” in the Company’s consolidated balance sheets. The Company evaluates this investment for impairment if an event occurs or circumstances change that would more likely than not reduce the fair value of the investment below carrying value. Based on the Company’s evaluation of this investment at September 30, 2017, the Company determined that an impairment loss was not probable at that date. |
Long-term Debt
Long-term Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-term Debt | 5. Long-term debt The Company’s long-term debt instruments and balances outstanding as of September 30, 2017 and 2016 and December 31, 2016 were as follows (dollars in thousands): September 30, December 31, 2017 2016 2016 Securitization notes $ 186,533 $ 136,953 $ 165,419 Revolving line of credit — 15,000 — 9.75% senior notes due 2021 342,407 495,427 495,622 8.50% senior notes due 2024 250,000 — — Subtotal 778,940 647,380 661,041 Less: Long-term debt issuance costs (13,545 ) (12,201 ) (11,130 ) Total long-term debt $ 765,395 $ 635,179 $ 649,911 8.50% Senior Unsecured Notes Due 2024 On September 1, 2017, the Company issued and sold $250.0 million in aggregate principal amount of 8.50% Senior Notes due 2024 (the “2024 Senior Notes”). The 2024 Senior Notes were sold to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) and outside the United States pursuant to Regulation S under the Securities Act. The 2024 Senior Notes bear interest at a rate of 8.50% annually on the principal amount payable semi-annually in arrears on March 1 and September 1 of each year, beginning on March 1, 2018. The 2024 Senior Notes were sold at a price of 100%. The 2024 Senior Notes will mature on September 1, 2024. The 2024 Senior Notes are unsecured debt obligations of the Company, and are unconditionally guaranteed by certain of the Company’s domestic subsidiaries. The 2024 Senior Notes are redeemable at the Company’s option, in whole or in part, (i) at any time prior to September 1, 2020 at 100% of the aggregate principal amount of 2024 Senior Notes redeemed plus the applicable “make whole” premium specified in the indenture that governs the Company’s 2024 Notes (the "2024 Senior Notes Indenture"), plus accrued and unpaid interest, if any, to the redemption date and (ii) at any time on or after September 1, 2020 at the premium, if any, specified in the 2024 Senior Notes Indenture that will decrease over time, plus accrued and unpaid interest, if any, to the redemption date. In addition, prior to September 1, 2020, at its option, the Company may redeem up to 40% of the aggregate principal amount of the 2024 Senior Notes at a redemption price of 108.5% of the aggregate principal amount of 2024 Senior Notes redeemed, plus accrued and unpaid interest, if any, to the redemption date, with the proceeds of certain equity offerings as described in the 2024 Senior Notes Indenture. The 2024 Senior Notes and the related guarantees have not been and will not be registered under the Securities Act, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities or blue sky laws and foreign securities laws. In connection with the issuance of the 2024 Senior Notes, the Company incurred approximately $7.6 million of issuance costs, which primarily consisted of underwriting fees, legal and other professional expenses. The Company used the net proceeds of the 2024 Senior Notes offering to retire a portion of its outstanding 9.75% senior notes due 2021, to pay the related accrued interest, premiums, fees and expenses associated therewith and for general corporate purposes, which may include working capital and future repurchases of its outstanding debt securities. As of September 30, 2017, the carrying amount of the 2024 Senior Notes was $242.5 million, which includes unamortized issuance costs of $7.5 million. The total interest expense recognized was $1.9 million for the nine months ended September 30, 2017. Consumer Loan Securitization 2016-1 Facility On January 15, 2016, the Company and certain of its subsidiaries entered into a receivables securitization (as amended, the “2016‑1 Securitization Facility”) with certain purchasers, Jefferies Funding LLC, as administrative agent (the “Administrative Agent”) and Bankers Trust Company, as indenture trustee and securities intermediary (the “Indenture Trustee”). The 2016‑1 Securitization Facility securitizes unsecured consumer installment loans (“Receivables”) that have been, or will be, originated or acquired under the Company’s NetCredit brand and that meet specified eligibility criteria. Under the 2016‑1 Securitization Facility, Receivables are sold to EFR 2016‑1, LLC, a wholly-owned special purpose subsidiary (the “Issuer”), and serviced by another subsidiary. The Issuer issued an initial term note of $107.4 million (the “Initial Term Note”), which was secured by $134 million in unsecured consumer loans, and variable funding notes (the “Variable Funding Notes”) with an aggregate availability of $20 million per month; the 2016‑1 Securitization Facility was amended to increase the availability to $40 million until December 31, 2016, and $30 million thereafter, as discussed below. As described below, the Issuer has issued and will subsequently issue term notes (the “Term Notes” and, together with the Initial Term Note and the Variable Funding Notes, the “Securitization Notes”). The maximum principal amount of the Securitization Notes that may be outstanding at any time under the 2016‑1 Securitization Facility was limited to $175 million; the 2016‑1 Securitization Facility was amended to increase the maximum principal amount to $275 million, as discussed below. At the end of each month during the nine-month revolving period, the Receivables funded by the Variable Funding Notes have been and will be refinanced through the creation of two Term Notes, which Term Notes have been and will be issued to the holders of the Variable Funding Notes. The non-recourse Securitization Notes mature at various dates, the latest of which will be October 15, 2020 (the “Final Maturity Date”). The 2016‑1 Securitization Facility has been amended to extend the revolving period to October 2017 and the latest maturity to October 2021, as discussed below. The Securitization Notes are issued pursuant to an indenture, dated as of January 15, 2016 (the “Closing Date”). The Securitization Notes bear interest at an annual rate equal to the one month London Interbank Offered Rate (“LIBOR”) (subject to a floor of 1%) plus 7.75%, which rate was initially 8.75%. In addition, the Issuer paid certain customary upfront closing fees and will pay customary annual commitment and other fees to the purchasers under the 2016‑1 Securitization Facility. The Issuer is permitted to voluntarily prepay any outstanding Securitization Notes, subject to an optional redemption premium. Interest and principal payments on outstanding Securitization Notes are made monthly. Any remaining amounts outstanding will be payable no later than the Final Maturity Date. All amounts due under the Securitization Notes are secured by all of the Issuer’s assets, which include the Receivables transferred to the Issuer, related rights under the Receivables, specified bank accounts, and certain other related collateral. The 2016‑1 Securitization Facility documents contain customary provisions for securitizations, including: representations and warranties as to the eligibility of the Receivables and other matters; indemnification for specified losses not including losses due to the inability of consumers to repay their loans; covenants regarding special purpose entity matters and other subjects; and default and termination provisions which provide for the acceleration of the Securitization Notes under the 2016‑1 Securitization Facility in circumstances including, but not limited to, failure to make payments when due, servicer defaults, certain insolvency events, breaches of representations, warranties or covenants, failure to maintain the security interest in the receivables, defaults under other material indebtedness and certain regulatory matters. The agreements evidencing the 2016‑1 Facility, all dated as of the Closing Date, include (i) an Indenture between the Issuer and the Indenture Trustee, (ii) a Note Purchase Agreement among the Issuer, NetCredit Loan Services, LLC (f/k/a Enova Lending Services, LLC), as the Master Servicer, the Administrative Agent and certain purchasers, and (iii) a Receivables Purchase Agreement between the Company and Enova Finance 5, LLC. On July 26, 2016, the Company and certain of its subsidiaries entered into a First Omnibus Amendment (the “First Amendment”) of the 2016‑1 Facility that was established on the Closing Date, pursuant to various agreements with certain purchasers, the Administrative Agent and the Indenture Trustee. The First Amendment effected a variety of minor technical changes to the Indenture, the Note Purchase Agreement, the Receivables Purchase Agreement and the servicing agreement for the 2016‑1 Facility. These changes included revised procedures under the Note Purchase Agreement for the disbursement to the Issuer of proceeds from draws under the Variable Funding Notes and clarification of modifications that the servicer is permitted to effect to the terms of the Receivables that have been transferred into the EFR 2016‑1 Facility. On August 17, 2016, the Company and one of its subsidiaries entered into an Amendment to the Receivables Purchase Agreement. This amendment modified an eligibility criterion for Receivables that the Company sells under the Agreement. On September 12, 2016, the Company and certain of its subsidiaries entered into a Second Omnibus Amendment (the “Second Amendment”) to amend the Indenture and the Receivables Purchase Agreement. The Second Amendment authorized the Company to include in the 2016‑1 Facility Receivables originated by a state-chartered bank and acquired by a subsidiary of the Company from that bank, and it adjusted the Investment Pool Cumulative Net Loss Trigger for the Initial Term Note Investment Pool (as such terms are defined in the Indenture), which was the seasoned pool of receivables securitized under the 2016‑1 Facility on the Closing Date. On October 20, 2016, the Company and certain of its subsidiaries entered into a Third Amendment and Limited Waiver (the “Third Amendment”) to amend the Indenture and Receivables Purchase Agreement. The Third Amendment increased the maximum principal amount of the 2016‑1 Facility to $275 million, increased the Variable Funding Notes maximum principal amount to $40 million until December 31, 2016, and $30 million thereafter, and extended the revolving period of the facility to October 2017. The Third Amendment also adjusted the Note Interest Rate on Term Notes issued after, and amounts outstanding under the Variable Funding Notes after, the date of the Third Amendment (as such terms are defined in the Indenture). The weighted average interest rate on such adjusted Notes is 9.5%. On November 14, 2016, the Company and certain of its subsidiaries entered into a Fourth Amendment (the “Fourth Amendment”) to amend the Indenture and Receivables Purchase Agreement. The Fourth Amendment adjusted the Investment Pool Cumulative Delinquency Trigger (as such term is defined in the Indenture), with an effective date of October 31, 2016. On December 14, 2016, the Company and certain of its subsidiaries entered into a Fifth Amendment (the “Fifth Amendment”) to amend the Indenture and Receivables Purchase Agreement. The Fifth Amendment adjusted the Investment Pool Cumulative Delinquency Trigger (as such term is defined in the Indenture) for the Initial Term Notes, with an effective date of November 30, 2016, expanded the categories of Receivables that could be financed through the 2016‑1 Facility and made certain other minor changes. These changes provide the Company with additional flexibility under the 2016‑1 Facility. As of September 30, 2017 and 2016, the carrying amount of the 2016‑1 Securitization Facility was $173.7 million and $134.5 million, respectively, which included unamortized issuance costs of $0.8 million and $2.4 million, respectively. The issuance costs are being amortized to interest expense over a period of four years. The total interest expense recognized was $11.4 million and $9.5 million of which $1.1 million and $2.6 million represented the non-cash amortization of the issuance costs for the nine months ended September 30, 2017 and 2016, respectively. 2016‑2 Facility On December 1, 2016, the Company and certain of its subsidiaries entered into a receivables securitization (the “2016‑2 Facility”) with Redpoint Capital Asset Funding, LLC, as lender (the “Lender”). The 2016‑2 Facility securitizes unsecured consumer installment loans (“Redpoint Receivables”) that have been and will be originated or acquired under the Company’s NetCredit brand by several of the Company’s subsidiaries (the “Originators”) and that meet specified eligibility criteria, including that the annual percentage rate for each securitized consumer loan is greater than or equal to 90%. Under the 2016‑2 Facility, Redpoint Receivables are sold to a wholly-owned special purpose subsidiary of the Company (the “Debtor”) and serviced by another subsidiary of the Company. The Debtor has issued a revolving note with an initial maximum principal balance of $20.0 million (the “Initial Facility Size”), which is required to be secured by $25.0 million in unsecured consumer loans. The Initial Facility Size may be increased under the 2016‑2 Facility to $40 million. The 2016‑2 Facility is non-recourse to the Company and matures on December 1, 2019. The 2016‑2 Facility is governed by a loan and security agreement, dated as of December 1, 2016, between the Lender and the Debtor. The 2016‑2 Facility bears interest at a rate per annum equal to LIBOR (subject to a floor) plus an applicable margin, which rate per annum was initially 12.50%. In addition, the Debtor paid certain customary upfront closing fees to the Lender. Interest payments on the 2016‑2 Facility will be made monthly. Subject to certain exceptions, the Debtor is not permitted to prepay the 2016‑2 Facility prior to October 1, 2018. Following such date, the Debtor is permitted to voluntarily prepay the 2016‑2 Facility without penalty. Any remaining amounts outstanding will be payable no later than December 1, 2019. All amounts due under the 2016‑2 Facility are secured by all of the Debtor’s assets, which include the Redpoint Receivables transferred to the Debtor, related rights under the Redpoint Receivables, a bank account and certain other related collateral. The 2016‑2 Facility documents contain customary provisions for securitizations, including: representations and warranties as to the eligibility of the Redpoint Receivables and other matters; indemnification for specified losses not including losses due to the inability of consumers to repay the related Receivables; and default and termination provisions which provide for the acceleration of the 2016‑2 Facility in circumstances including, but not limited to, failure to make payments when due, certain insolvency events, breaches of representations, warranties or covenants, failure to maintain the security interest in the receivables and defaults under other material indebtedness of the Debtor. As of September 30, 2017, the carrying amount of the 2016‑2 Facility was $12.1 million. In connection with the issuance of the 2016‑2 Facility, the Company incurred debt issuance costs of approximately $0.2 million. The unamortized balance of these costs as of September 30, 2017 is included in “Other assets” in the consolidated balance sheets. These costs are being amortized to interest expense over a period of 36 months, the term of the 2016‑2 Facility. The total interest expense recognized was $1.4 million for the nine months ended September 30, 2017. Revolving Credit Facilities On May 14, 2014, the Company and certain of its subsidiaries as guarantors entered into a credit agreement among the Company, the guarantors, Jefferies Finance LLC as administrative agent and Jefferies Group LLC as lender (the “2014 Credit Agreement”). The 2014 Credit Agreement was terminated on June 30, 2017. The Company had no outstanding borrowings under the 2014 Credit Agreement as of September 30, 2016 and December 31, 2016. The 2014 Credit Agreement also included a sub-limit of up to $20.0 million for standby or commercial letters of credit. In the event that an amount was paid by the issuing bank under a letter of credit, it would have been due and payable by the Company on demand. The Company had outstanding letters of credit under the 2014 Credit Agreement of $6.6 million as of each of September 30, 2016 and December 31, 2016. In connection with the issuance of the 2014 Credit Agreement, as amended, the Company incurred debt issuance costs of approximately $1.6 million, which primarily consisted of underwriting fees and legal expenses. The unamortized balance of these costs was included in “Other assets” in the consolidated balance sheets. These costs were amortized to interest expense over a period of 37 months, the term of the 2014 Credit Agreement. On June 30, 2017, the Company and certain of its operating subsidiaries entered into an asset-backed secured revolving credit agreement with a syndicate of banks including TBK Bank, SSB (“TBK”), as Administrative Agent and Collateral Agent, Jefferies Finance LLC and TBK as Joint Lead Arrangers and Joint Lead Bookrunners, and Green Bank, N.A., as Lender (the “2017 Credit Agreement”). The 2017 Credit Agreement is secured by domestic receivables and replaced the 2014 Credit Agreement. The borrowing limit in the 2017 Credit Agreement increased to $40 million from $35 million in the 2014 Credit Agreement, and its maturity date is May 1, 2020. The Company had no outstanding borrowings under the 2017 Credit Agreement as of September 30, 2017. The 2017 Credit Agreement provides for a revolving credit line with interest on borrowings under the facility at prime rate plus 1.00%. In addition, the 2017 Credit Agreement provides for payment of a commitment fee calculated with respect to the unused portion of the line, and ranges from 0.30% per annum to 0.50% per annum depending on usage. A portion of the revolving credit facility, up to a maximum of $20 million, is available for the issuance of letters of credit. The Company had outstanding letters of credit under the 2017 Credit Agreement of $8.0 million as of September 30, 2017. The 2017 Credit Agreement provides for certain prepayment penalties if it is terminated on or before its first and second anniversary date, subject to certain exceptions. The 2017 Credit Agreement contains certain limitations on the incurrence of additional indebtedness, investments, the attachment of liens to the Company’s property, the amount of dividends and other distributions, fundamental changes to the Company or its business and certain other activities of the Company. The 2017 Credit Agreement contains standard financial covenants for a facility of this type based on a leverage ratio and a fixed charge coverage ratio. The 2017 Credit Agreement also provides for customary affirmative covenants, including financial reporting requirements, and certain events of default, including payment defaults, covenant defaults and other customary defaults. In connection with the issuance of the 2017 Credit Agreement, as amended, the Company incurred debt issuance costs of approximately $2.0 million, which primarily consisted of underwriting fees and legal expenses. The unamortized balance of these costs as of September 30, 2017 is included in “Other assets” in the consolidated balance sheets. These costs are being amortized to interest expense over a period of 34 months, the term of the 2017 Credit Agreement. 9.75% Senior Unsecured Notes Due 2021 On May 30, 2014, the Company issued and sold $500.0 million in aggregate principal amount of 9.75% Senior Notes due 2021 (the “2021 Senior Notes”). The 2021 Senior Notes bear interest at a rate of 9.75% annually on the principal amount payable semi-annually in arrears on June 1 and December 1 of each year, beginning on December 1, 2014. The 2021 Senior Notes were sold at a discount of the principal amount to yield 10.0% to maturity and will mature on June 1, 2021. During the three months ended September 30, 2017, the Company repurchased $155.0 million principal amount of the 2021 Senior Notes for aggregate cash consideration of $166.3 million plus accrued interest. In connection with these purchases, the Company recorded a loss on extinguishment of debt of approximately $14.9 million ($9.2 million net of tax), which is included in “Loss on early extinguishment of debt” in the consolidated statements of income. As of September 30, 2017 and 2016, the carrying amount of the 2021 Senior Notes was $337.1 million and $485.6 million, respectively, which included an unamortized discount of $2.6 million and $4.6 million, respectively, and unamortized issuance costs of $5.3 million and $9.8 million, respectively. The discount and issuance costs are being amortized to interest expense over a period of seven years, through the maturity date of June 1, 2021. The total interest expense recognized for the nine months ended September 30, 2017 Weighted-average interest rates on long-term debt were 10.58% and 10.75% during the nine months ended September 30, 2017 and 2016, respectively. As of September 30, 2017 and 2016 and |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 6. Earnings Per Share Basic earnings per share is computed by dividing net (loss) income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by giving effect to the potential dilution that could occur if securities or other contracts to issue common shares were exercised and converted into common shares during the period. Restricted stock units issued under the Company’s stock-based employee compensation plans are included in diluted shares upon the granting of the awards even though the vesting of shares will occur over time. The following table sets forth the reconciliation of numerators and denominators of basic and diluted earnings per share computations for the three and nine months ended September 30, 2017 and 2016 (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Numerator: Net (loss) income $ (3,368 ) $ 7,837 $ 22,357 $ 25,888 Denominator: Total weighted average basic shares 33,670 33,211 33,533 33,176 Shares applicable to stock-based compensation — 347 586 184 Total weighted average diluted shares 33,670 33,558 34,119 33,360 Earnings per share: Net (loss) income per share – basic $ (0.10 ) $ 0.24 $ 0.67 $ 0.78 Net (loss) income per share – diluted $ (0.10 ) $ 0.23 $ 0.66 $ 0.78 For the three months ended September 30, 2017 and 2016 September 30, 2017 and 2016 |
Operating Segment Information
Operating Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Operating Segment Information | 7. Operating Segment Information The Company provides online financial services to alternative credit consumers and small businesses in the United States, United Kingdom and Brazil and has one reportable segment, which is composed of the Company’s domestic and international operations and corporate services. Corporate services primarily includes personnel, occupancy and other operating expenses for shared functions, such as executive management, technology, analytics, business development, legal and licensing, compliance, risk management, internal audit, human resources, payroll, treasury, finance, accounting, and tax. Corporate Services assets primarily include: corporate property and equipment, nonqualified savings plan assets, marketable securities, restricted cash and prepaid expenses. The following tables present information on the Company’s domestic, international operations and corporate services as of and for the three and nine months ended September 30, 2017 and 2016 (dollars in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Revenue Domestic $ 181,584 $ 165,330 $ 504,326 $ 449,100 International 36,294 30,613 95,719 94,031 Total revenue $ 217,878 $ 195,943 $ 600,045 $ 543,131 Income (Loss) from operations Domestic $ 55,767 $ 44,015 $ 176,402 $ 148,717 International (1,983 ) 5,659 3,939 16,136 Corporate services (26,107 ) (21,577 ) (79,389 ) (76,100 ) Total income from operations $ 27,677 $ 28,097 $ 100,952 $ 88,753 Depreciation and amortization Domestic $ 1,634 $ 1,385 $ 4,692 $ 4,552 International 396 409 1,136 1,813 Corporate services 1,503 1,995 4,568 5,639 Total depreciation and amortization $ 3,533 $ 3,789 $ 10,396 $ 12,004 Expenditures for property and equipment Domestic $ 2,231 $ 2,395 $ 4,271 $ 5,425 International 1,281 1,043 3,401 2,489 Corporate services 1,991 379 3,132 3,552 Total expenditures for property and equipment $ 5,503 $ 3,817 $ 10,804 $ 11,466 September 30, 2017 2016 Property and equipment, net Domestic $ 22,541 $ 19,259 International 7,106 5,094 Corporate services 16,910 23,133 Total property and equipment, net $ 46,557 $ 47,486 Assets Domestic $ 899,495 $ 823,737 International 126,583 98,842 Corporate services 113,700 52,500 Total assets $ 1,139,778 $ 975,079 Geographic Information The following table presents the Company’s revenue by geographic region for the three and nine months ended September 30, 2017 and 2016 (dollars in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Revenue United States $ 181,584 $ 165,330 $ 504,326 $ 449,100 United Kingdom 30,679 26,793 82,528 78,882 Other international countries 5,615 3,820 13,191 15,149 Total revenue $ 217,878 $ 195,943 $ 600,045 $ 543,131 The Company’s long-lived assets, which consist of the Company’s property and equipment, were $46.6 million and $47.5 million at September 30, 2017 and 2016, respectively. The operations for the Company’s domestic and international businesses are primarily located within the United States, and the value of any long-lived assets located outside of the United States is immaterial. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies Litigation On March 8, 2013, Flemming Kristensen, on behalf of himself and others similarly situated, filed a purported class action lawsuit in the U.S. District Court of Nevada against the Company and other unaffiliated lenders and lead providers. The lawsuit alleges that the lead provider defendants sent unauthorized text messages to consumers on behalf of the Company and the other lender defendants in violation of the Telephone Consumer Protection Act. The complaint seeks class certification, statutory damages, an injunction against “wireless spam activities,” and attorneys’ fees and costs. The Company filed an answer to the complaint denying all liability. On March 26, 2014, the Court granted class certification. On July 20, 2015, the court granted the Company’s motion for summary judgment, denied Plaintiff’s motion for summary judgment and, on July 21, 2015, entered judgment in favor of the Company. Plaintiff filed a motion for reconsideration, which was denied. On May 3, 2016, Plaintiff filed a notice of appeal of the order granting summary judgment for the Company, the judgment in favor of the company, and the order denying Plaintiff’s motion to reconsider. Appellate briefing is now complete, and the court has heard oral arguments. Neither the likelihood of an unfavorable appellate decision nor the ultimate liability, if any, with respect to this matter can be determined at this time, and the Company is currently unable to estimate a range of reasonably possible losses, as defined by ASC 450-20-20, Contingencies–Loss Contingencies–Glossary, for this litigation. The Company believes that the Plaintiff’s claims in the complaint are without merit and intends to vigorously defend this lawsuit. The Company is also involved in certain routine legal proceedings, claims and litigation matters encountered in the ordinary course of its business. Certain of these matters may be covered to an extent by insurance or by indemnification agreements with third parties. The Company has recorded accruals in its consolidated financial statements for those matters in which it is probable that it has incurred a loss and the amount of the loss, or range of loss, can be reasonably estimated. In the opinion of management, the resolution of these matters will not have a material adverse effect on the Company’s financial position, results of operations or liquidity. Headquarters Relocation During 2014 the Company accelerated the lease expiration date for approximately 86,000 rentable square feet at its prior headquarters office space effective June 30, 2015. The Company relocated to its current headquarters in 2015 and recognized an expense of $3.7 million which was included as “General and administrative expense” and consisted of a lease exit liability of $2.9 million for the remaining lease payments, net of estimated sublease income of $1.7 million, and $0.8 million for the removal of property and restoration costs related to the prior headquarters lease. The Company did not incur further material costs related to the relocation. The following table is a summary of the exit and disposal activity and liability balances as a result of the headquarters relocation for the nine months ended September 30, 2017 and the twelve months ended December 31, 2016 (in thousands): Lease Termination Costs Other Exit Costs Total Balance at January 1, 2016 $ 1,425 $ 204 $ 1,629 Payments (1,132 ) — (1,132 ) Adjustments 344 (69 ) 275 Balance at December 31, 2016 $ 637 $ 135 $ 772 Balance at January 1, 2017 $ 637 $ 135 $ 772 Payments (554 ) (9 ) (563 ) Adjustments (83 ) (126 ) (209 ) Balance at September 30, 2017 $ — $ — $ — |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 9 . Derivative Instruments The Company has periodically used derivative instruments to manage risk from changes in market conditions that may affect the Company’s financial performance. The Company has primarily used derivative instruments to manage its primary market risks, which are interest rate risk and foreign currency exchange rate risk. The Company has periodically used forward currency exchange contracts to minimize the effects of foreign currency risk in the United Kingdom. The forward currency exchange contracts are non-designated derivatives. Any gain or loss resulting from these contracts is recorded as income or loss and is included in “Foreign currency transaction gain” in the Company’s consolidated statements of income. As of September 30, 2017, the Company did not manage its exposure to risk from foreign currency exchange rate fluctuations through the use of forward currency exchange contracts in the United Kingdom or Brazil. The Company had no outstanding derivative instruments as of September 30, 2017 and 2016 and December 31, 2016. There were no effects of derivative instruments on the consolidated results of operations and accumulated other comprehensive income (“AOCI”) for the three months ended September 30, 2017 and 2016. The following table presents information on the effect of derivative instruments on the consolidated results of operations and accumulated other comprehensive income for the nine months ended September 30, 2017 and 2016 (dollars in thousands): Gains (Losses) Gains (Losses) Recognized in Gains (Losses) Reclassified From Income Recognized in AOCI AOCI into Income Nine Months Ended Nine Months Ended Nine Months Ended September 30, September 30, September 30, 2017 2016 2017 2016 2017 2016 Non-designated derivatives: Forward currency exchange contracts (1) $ — $ 3,020 $ — $ — $ — $ — Total $ — $ 3,020 $ — $ — $ — $ — (1) The gains (losses) on these derivatives substantially offset the (losses) gains on the economically hedged portion of the foreign intercompany balances. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 10. Related Party Transactions A current officer of the Company has an ongoing ownership interest in the small business from which the Company acquired certain assets and assumed certain liabilities in June 2015 (see Note 2 for additional information). In the normal course of business, the Company attains certain customer relationships from the small business by entering into transactions with the customers to provide additional RPA financing. In these transactions, the Company satisfies the customer’s existing RPA balance with the small business which terminates such customer’s responsibilities to the small business. During the nine months ended September 30, 2017 the Company did not attain any relationships through these transactions with the small business. During the nine months ended September 30, 2016, the Company paid $0.4 million to the small business to satisfy customers’ existing RPA balances. Pursuant to the acquisition, a subsidiary of the Company issued a promissory note to the small business in the amount of $3.0 million (the “Promissory Note”) and granted the company an opportunity to earn certain contingent purchase consideration (see Note 2 for additional information), both of which are guaranteed by the Company. The Promissory Note accrues interest at a rate of 4.0% per annum and will mature on June 23, 2018. During the nine months ended September 30, 2017 and 2016, the Company incurred interest expense of $95 thousand and $91 thousand, respectively, related to the Promissory Note. In addition, as a condition precedent to the acquisition, a subsidiary of the Company executed a Transition Services Agreement with the small business from which the Company acquired certain assets whereby it agreed to provide certain transition services to the business for three years following the acquisition. During the nine months ended September 30, 2017 and 2016, the Company was paid $24 thousand and $27 thousand, respectively, for such services. The Company and Cash America entered into an agreement in conjunction with the Spin-off for the Company to administer the consumer loan underwriting model utilized by Cash America’s Retail Services Division in exchange for a fee per transaction paid to the Company as well as the reimbursement of the Company’s direct third-party costs incurred in providing the service. The Company received $0.6 million and $0.7 million for the nine months ended September 30, 2017 and 2016, respectively, pursuant to this agreement. Since May 30, 2014, amounts due from or due to Cash America or FirstCash have been settled a month in arrears. The balance due from FirstCash of $0.1 million as of September 30, 2017 and 2016 December 31, 2016, respectively, |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2017 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | 11. Variable Interest Entities As part of the Company’s overall funding strategy and as part of its efforts to support its liquidity from sources other than its traditional capital market sources, the Company has established a securitization program through the 2016-1 and 2016-2 Securitization Facilities. The Company transferred certain consumer loan receivables to wholly owned, bankruptcy-remote special purpose subsidiaries (VIEs), which issue term notes backed by the underlying consumer loan receivables and are serviced by another wholly owned subsidiary. The Company is required to evaluate the VIEs for consolidation. The Company has the ability to direct the activities of the VIEs that most significantly impact the economic performance of the entities as the servicer of the securitized loan receivables. Additionally, the Company has the right to receive residual payments, which expose it to potentially significant losses and returns. Accordingly, the Company determined it is the primary beneficiary of the VIEs and is required to consolidate them. The assets and liabilities related to the VIEs are included in the Company’s consolidated financial statements and are accounted for as secured borrowings. The Company parenthetically discloses on its consolidated balance sheets the VIE’s assets that can only be used to settle the VIE’s obligations and the VIE liabilities if the VIE’s creditors have no recourse against the Company’s general credit. The carrying amounts of consolidated VIE assets and liabilities associated with the Company’s securitization entities were as follows (dollars in thousands): September 30, December 31, 2017 2016 2016 Assets Cash and cash equivalents $ — $ 105 $ — Restricted cash and cash equivalents 22,161 18,119 19,468 Loans and finance receivables, net 274,363 176,016 216,766 Other receivables and prepaid expenses — 3 3 Other assets 2,056 — 2,459 Total assets $ 298,580 $ 194,243 $ 238,696 Liabilities Accounts payable and accrued expenses $ 1,793 $ 991 $ 1,350 Long-term debt 185,771 134,537 163,550 Total liabilities $ 187,564 $ 135,528 $ 164,900 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 12. Fair Value Measurements Recurring Fair Value Measurements In accordance with ASC 820, Fair Value Measurements and Disclosures, certain of the Company’s assets and liabilities, which are carried at fair value, are classified in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. During the nine months ended September 30, 2017 and 2016, there were no transfers of assets or liabilities in or out of Level 1, Level 2 or Level 3 fair value measurements. It is the Company’s policy to value any transfers between levels of the fair value hierarchy based on end of period fair values. The Company’s financial assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2017 and 2016 and December 31, 2016 are as follows (dollars in thousands): September 30, Fair Value Measurements Using 2017 Level 1 Level 2 Level 3 Financial assets (liabilities): Non-qualified savings plan assets (1) $ 1,443 $ 1,443 $ — $ — Contingent consideration (2,358 ) — — (2,358 ) Total $ (915 ) $ 1,443 $ — $ (2,358 ) September 30, Fair Value Measurements Using 2016 Level 1 Level 2 Level 3 Financial assets (liabilities): Non-qualified savings plan assets (1) $ 1,528 $ 1,528 $ — $ — Contingent consideration (5,658 ) — — (5,658 ) Total $ (4,130 ) $ 1,528 $ — $ (5,658 ) December 31, Fair Value Measurements Using 2016 Level 1 Level 2 Level 3 Financial assets (liabilities): Non-qualified savings plan assets (1) $ 1,590 $ 1,590 $ — $ — Contingent consideration (2,358 ) — — (2,358 ) Total $ (768 ) $ 1,590 $ — $ (2,358 ) (1) The non-qualified savings plan assets are included in “Other receivables and prepaid expenses” in the Company’s consolidated balance sheets and have an offsetting liability of equal amount, which is included in “Accounts payable and accrued expenses” in the Company’s consolidated balance sheets. The Company determined the fair value of the liability for the contingent consideration based on a probability-weighted discounted cash flow analysis. This analysis reflects the contractual terms of the purchase agreement and utilizes assumptions with regard to future earnings, probabilities of achieving such future earnings, the timing of expected payments and a discount rate. Significant increases with respect to assumptions as to future earnings and probabilities of achieving such future earnings would result in a higher fair value measurement while an increase in the discount rate would result in a lower fair value measurement. The fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement as defined in the fair value hierarchy. The changes in the fair value of the contingent consideration, which is Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Contingent consideration Total Balance at December 31, 2015 $ 5,658 $ 5,658 Adjustments — — Balance at September 30, 2016 $ 5,658 $ 5,658 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Contingent consideration Total Balance at December 31, 2016 $ 2,358 $ 2,358 Adjustments — — Balance at September 30, 2017 $ 2,358 $ 2,358 Fair Value Measurements on a Non-Recurring Basis The Company measures non-financial assets and liabilities such as property and equipment and intangible assets at fair value on a non-recurring basis or when events or circumstances indicate that the carrying amount of the assets may be impaired. At September 30, 2017 and 2016 and December 31, 2016 Financial Assets and Liabilities Not Measured at Fair Value The Company’s financial assets and liabilities as of September 30, 2017 and 2016 and December 31, 2016 that are not measured at fair value in the consolidated balance sheets are as follows (dollars in thousands): Balance at September 30, Fair Value Measurements Using 2017 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 110,054 $ 110,054 $ — $ — Short-term loans and line of credit accounts, net (1) 176,437 — — 176,437 Installment loans and RPAs, net (1)(4) 461,299 — — 496,377 Restricted cash (5) 29,866 29,866 — — Investment in unconsolidated investee (2)(3) 6,703 — — 6,703 Total $ 784,359 $ 139,920 $ — $ 679,517 Financial liabilities: Liability for estimated losses on consumer loans guaranteed by the Company $ 2,017 $ — $ — $ 2,017 Promissory note 3,000 — — 3,245 Securitization Notes 186,533 — 189,005 — 9.75% senior notes due 2021 342,407 — 363,796 — 8.50% senior notes due 2024 250,000 — 252,000 — Total $ 783,957 $ — $ 804,801 $ 5,262 Balance at September 30, Fair Value Measurements Using 2016 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 45,681 $ 45,681 $ — $ — Short-term loans and line of credit accounts, net (1) 147,992 — — 147,992 Installment loans and RPAs, net (1)(4) 394,873 — — 448,111 Restricted cash (5) 39,272 39,272 — — Investment in unconsolidated investee (2)(3) 6,703 — — 6,703 Total $ 634,521 $ 84,953 $ — $ 602,806 Financial liabilities: Liability for estimated losses on consumer loans guaranteed by the Company $ 1,727 $ — $ — $ 1,727 Promissory note 3,000 — — 3,076 Credit agreement borrowings 15,000 — — 15,000 Securitization Notes 136,953 — 139,911 — 9.75% senior notes due 2021 495,427 — 455,875 — Total $ 652,107 $ — $ 595,786 $ 19,803 Balance at December 31, Fair Value Measurements Using 2016 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 39,934 $ 39,934 $ — $ — Short-term loans and line of credit accounts, net (1) 162,824 — — 162,824 Installment loans and RPAs, net (1)(4) 398,726 — — 430,895 Restricted cash (5) 26,306 26,306 — — Investment in unconsolidated investee (2)(3) 6,703 — — 6,703 Total $ 634,493 $ 66,240 $ — $ 600,422 Financial liabilities: Liability for estimated losses on consumer loans guaranteed by the Company $ 1,996 $ — $ — $ 1,996 Promissory note 3,000 — — 3,111 Securitization Notes 165,419 — 168,216 — 9.75% senior notes due 2021 495,622 — 495,940 — Total $ 666,037 $ — $ 664,156 $ 5,107 (1) Short-term loans, line of credit accounts, installment loans and RPAs are included in “Loans and finance receivables, net” in the consolidated balance sheets. (2) Investment in unconsolidated investee is included in “Other assets” in the consolidated balance sheets. (3) See Note 4 for additional information related to the investment in unconsolidated investee. (4) Installment loan and RPAs, net include $274.4 million, $176.0 million and $216.8 million in net assets of consolidated VIEs as of September 30, 2017 and 2016 and December 31, 2016, respectively. (5) Restricted cash includes $22.2 million, $18.1 million and $19.5 million in assets of consolidated VIEs as of September 30, 2017 and 2016 and December 31, 2016, respectively. Cash and cash equivalents and restricted cash bear interest at market rates and have original maturities of less than 90 days. The carrying amount of restricted cash and cash equivalents approximates fair value. Short-term loans, line of credit accounts, installment loans and RPAs are carried in the consolidated balance sheet net of the allowance for estimated losses, which is calculated by applying historical loss rates combined with recent default trends to the gross receivable balance. Short-term loans and line of credit accounts have relatively short maturity periods that are generally 12 months or less. The unobservable inputs used to calculate the fair value of these receivables include historical loss rates, recent default trends and estimated remaining loan term; therefore, the carrying value approximates the fair value. The fair value of installment loans and RPAs is estimated using discounted cash flow analyses, which consider interest rates on loans and discounts offered for receivables with similar terms to customers with similar credit quality, the timing of expected payments, estimated customer default rates and/or valuations of comparable portfolios. As of September 30, 2017 and 2016 and December 31, 2016, the fair value of the Company’s installment loans and RPAs was greater than the carrying value of these loans and finance receivables. Unsecured installment loans typically have terms between two and 60 months. RPAs typically have estimated delivery terms between six and 18 months. The Company measures the fair value of its investment in unconsolidated investee using Level 3 inputs. Because the unconsolidated investee is a private company and financial information is limited, the Company estimates the fair value based on the best available information at the measurement date. As of September 30, 2017 and 2016 and December 31, 2016 the Company estimated the fair value of its investment to be approximately equal to the book value. In connection with its CSO programs, the Company guarantees consumer loan payment obligations to unrelated third-party lenders for short-term and installment loans the Company arranges for consumers on the third-party lenders’ behalf and is required to purchase any defaulted loans it has guaranteed. The estimated fair value of the liability for estimated losses on consumer loans guaranteed by the Company was $2.0 million, $1.7 million and $2.0 million as of September 30, 2017 and 2016 and December 31, 2016, respectively. The Company measures the fair value of its liability for third-party lender-owned consumer loans under Level 3 inputs. The fair value of these liabilities is calculated by applying historical loss rates combined with recent default trends to the gross consumer loan balance. The unobservable inputs used to calculate the fair value of these loans include historical loss rates, recent default trends and estimated remaining loan terms; therefore, the carrying value of these liabilities approximates the fair value. The Company measures the fair value of the Promissory Note using Level 3 inputs. The fair value of the Promissory Note is estimated using a discounted cash flow analysis. As of September 30, 2017 and 2016 and December 31, 2016, the Promissory Note had a higher fair value than the carrying value. The Company measures the fair value of its Securitization Notes using Level 2 inputs. The fair value of the Company’s Securitization Notes is estimated based on quoted prices in markets that are not active. As of , the Company’s Securitization Notes had a higher fair value than the carrying value. The Company measures the fair value of its 9.75% senior notes due 2021 using Level 2 inputs. The fair value of the Company’s 9.75% senior notes due 2021 is estimated based on quoted prices in markets that are not active. As of , the Company’s 9.75% due 2021 had a higher fair value than the carrying value. , The Company measures the fair value of its 8.50% senior notes due 2024 using Level 2 inputs. The fair value of the Company’s 8.50% senior notes due 2024 is estimated based on quoted prices in markets that are not active. As of the Company’s 8.50% s due 2024 had a higher fair value than the carrying value. |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 9 Months Ended |
Sep. 30, 2017 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Financial Statements | 13. Condensed Consolidating Financial Statements The Company’s Senior Notes are unconditionally guaranteed by certain of the Company’s subsidiaries (the “Guarantor Subsidiaries”) and are not secured by its other subsidiaries (the “Non-Guarantor Subsidiaries”). The Guarantor Subsidiaries are 100% owned, all guarantees are full and unconditional, and all guarantees are joint and several. As a result of the guarantee arrangements, the Company is required, in accordance with Rule 3-10 of Regulation S-X, to present the following condensed consolidating financial statements. The condensed consolidating financial statements reflect the investments in subsidiaries of the Company using the equity method of accounting. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions. Condensed consolidating financial statements of Enova International, Inc. (the “Parent”), its Guarantor Subsidiaries and Non-Guarantor Subsidiaries as of September 30, 2017 and 2016 and December 31, 2016 and for the periods ended September 30, 2017 and 2016 are shown on the following pages. CONDENSED CONSOLIDATING BALANCE SHEETS As of September 30, 2017 (dollars in thousands) Guarantor Non-Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ 54,055 $ 50,996 $ 5,003 $ — $ 110,054 Restricted cash — 7,705 22,161 — 29,866 Loans and finance receivables, net — 351,627 286,109 — 637,736 Income taxes receivable 105,140 (95,852 ) 31 — 9,319 Other receivables and prepaid expenses 245 21,271 2,280 — 23,796 Property and equipment, net — 45,925 632 — 46,557 Goodwill — 267,015 — — 267,015 Intangible assets, net — 4,593 — — 4,593 Investment in subsidiaries 362,991 45,924 — (408,915 ) — Intercompany receivable 343,514 — — (343,514 ) — Other assets 1,826 6,960 2,056 — 10,842 Total assets $ 867,771 $ 706,164 $ 318,272 $ (752,429 ) $ 1,139,778 Liabilities and Stockholders' Equity Accounts payable and accrued expenses $ 13,795 $ 62,348 $ 2,754 $ — $ 78,897 Intercompany payables — 252,154 91,360 (343,514 ) — Deferred tax liabilities, net (453 ) 21,634 (500 ) — 20,681 Long-term debt 579,624 — 185,771 — 765,395 Total liabilities 592,966 336,136 279,385 (343,514 ) 864,973 Commitments and contingencies Stockholders' equity 274,805 370,028 38,887 (408,915 ) 274,805 Total liabilities and stockholders' equity $ 867,771 $ 706,164 $ 318,272 $ (752,429 ) $ 1,139,778 CONDENSED CONSOLIDATING BALANCE SHEETS As of September 30, 2016 (dollars in thousands) Guarantor Non-Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ — $ 43,127 $ 2,554 $ — $ 45,681 Restricted cash — 21,152 18,120 — 39,272 Loans and finance receivables, net — 358,142 184,723 — 542,865 Income taxes receivable — — — — — Other receivables and prepaid expenses 141 18,222 286 — 18,649 Property and equipment, net — 47,050 436 — 47,486 Goodwill — 267,012 — — 267,012 Intangible assets, net — 5,670 5 — 5,675 Investment in subsidiaries 278,999 22,358 — (301,357 ) — Intercompany receivable 413,472 — — (413,472 ) — Other assets 460 7,979 — — 8,439 Total assets $ 693,072 $ 790,712 $ 206,124 $ (714,829 ) $ 975,079 Liabilities and Stockholders' Equity Accounts payable and accrued expenses $ 16,386 $ 67,931 $ 1,116 $ — $ 85,433 Intercompany payables — 357,650 55,826 (413,476 ) — Income taxes currently payable (56,364 ) 61,521 (8 ) — 5,149 Deferred tax liabilities, net (677 ) 17,394 (484 ) — 16,233 Long-term debt 500,642 — 134,537 — 635,179 Total liabilities 459,987 504,496 190,987 (413,476 ) 741,994 Commitments and contingencies Stockholders' equity 233,085 286,216 15,137 (301,353 ) 233,085 Total liabilities and stockholders' equity $ 693,072 $ 790,712 $ 206,124 $ (714,829 ) $ 975,079 CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2016 (dollars in thousands) Guarantor Non-Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ — $ 36,057 $ 3,877 $ — $ 39,934 Restricted cash — 6,838 19,468 — 26,306 Loans and finance receivables, net — 335,160 226,390 — 561,550 Other receivables and prepaid expenses 127 19,095 302 — 19,524 Property and equipment, net — 46,507 593 — 47,100 Goodwill — 267,010 — — 267,010 Intangible assets, net — 5,400 4 — 5,404 Investment in subsidiaries 294,646 25,131 — (319,777 ) — Intercompany receivable 363,942 — — (363,942 ) — Other assets 597 7,995 2,459 — 11,051 Total assets $ 659,312 $ 749,193 $ 253,093 $ (683,719 ) $ 977,879 Liabilities and Stockholders' Equity Accounts payable and accrued expenses $ 4,310 $ 65,714 $ 1,647 $ — $ 71,671 Intercompany payables — 295,763 68,179 (363,942 ) — Income taxes currently payable (72,704 ) 73,006 (20 ) — 282 Deferred tax liabilities, net (354 ) 15,156 (486 ) — 14,316 Long-term debt 486,361 — 163,550 — 649,911 Total liabilities 417,613 449,639 232,870 (363,942 ) 736,180 Commitments and contingencies Stockholders' equity 241,699 299,554 20,223 (319,777 ) 241,699 Total liabilities and stockholders' equity $ 659,312 $ 749,193 $ 253,093 $ (683,719 ) $ 977,879 CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended September 30, 2017 (in thousands) Guarantor Non-Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Revenue $ — $ 178,908 $ 40,374 $ (1,404 ) $ 217,878 Cost of Revenue — 79,349 27,992 — 107,341 Gross Profit — 99,559 12,382 (1,404 ) 110,537 Expenses Marketing — 26,423 577 — 27,000 Operations and technology — 22,911 4,252 — 27,163 General and administrative 131 25,746 691 (1,404 ) 25,164 Depreciation and amortization — 3,486 47 — 3,533 Total Expenses 131 78,566 5,567 (1,404 ) 82,860 (Loss) Income from Operations (131 ) 20,993 6,815 — 27,677 Interest expense, net (14,238 ) (33 ) (4,021 ) — (18,292 ) Foreign currency transaction gain 65 — — — 65 Loss on early extinguishment of debt (14,927 ) — — — (14,927 ) (Loss) Income before Income Taxes and Equity in Net Earnings of Subsidiaries (29,231 ) 20,960 2,794 — (5,477 ) (Benefit from) provision for income taxes (9,760 ) 6,746 905 — (2,109 ) (Loss) Income before Equity in Net Earnings of Subsidiaries (19,471 ) 14,214 1,889 — (3,368 ) Net earnings of subsidiaries 16,103 1,889 — (17,992 ) — Net (Loss) Income $ (3,368 ) $ 16,103 $ 1,889 $ (17,992 ) $ (3,368 ) Other comprehensive gain (loss), net of tax: Foreign currency translation gain (loss) 2,052 1,304 749 (2,053 ) 2,052 Total other comprehensive gain (loss), net of tax 2,052 1,304 749 (2,053 ) 2,052 Comprehensive (Loss) Income $ (1,316 ) $ 17,407 $ 2,638 $ (20,045 ) $ (1,316 ) CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended September 30, 2016 (in thousands) Guarantor Non-Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Revenue $ — $ 170,288 $ 24,157 $ 1,498 $ 195,943 Cost of Revenue — 78,283 17,108 — 95,391 Gross Profit — 92,005 7,049 1,498 100,552 Expenses Marketing — 26,348 374 — 26,722 Operations and technology — 19,505 1,132 — 20,637 General and administrative 37 18,539 1,233 1,498 21,307 Depreciation and amortization — 3,761 28 — 3,789 Total Expenses 37 68,153 2,767 1,498 72,455 (Loss) Income from Operations (37 ) 23,852 4,282 — 28,097 Interest expense, net (13,342 ) (123 ) (2,652 ) — (16,117 ) Foreign currency transaction gain 145 — — — 145 (Loss) Income before Income Taxes and Equity in Net Earnings of Subsidiaries (13,234 ) 23,729 1,630 — 12,125 (Benefit from) provision for income taxes (4,832 ) 8,451 669 — 4,288 (Loss) Income before Equity in Net Earnings of Subsidiaries (8,402 ) 15,278 961 — 7,837 Net earnings of subsidiaries 16,239 961 — (17,200 ) — Net Income (Loss) $ 7,837 $ 16,239 $ 961 $ (17,200 ) $ 7,837 Other comprehensive (loss) gain, net of tax: Foreign currency translation (loss) gain (1,245 ) (1,084 ) (160 ) 1,244 (1,245 ) Total other comprehensive (loss) gain, net of tax (1,245 ) (1,084 ) (160 ) 1,244 (1,245 ) Comprehensive Income (Loss) $ 6,592 $ 15,155 $ 801 $ (15,956 ) $ 6,592 CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Nine Months Ended September 30, 2017 (in thousands) Guarantor Non-Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Revenue $ — $ 497,081 $ 106,902 $ (3,938 ) $ 600,045 Cost of Revenue — 197,281 71,806 — 269,087 Gross Profit — 299,800 35,096 (3,938 ) 330,958 Expenses Marketing — 68,686 1,307 — 69,993 Operations and technology — 65,090 7,422 — 72,512 General and administrative 265 76,060 4,718 (3,938 ) 77,105 Depreciation and amortization — 10,261 135 — 10,396 Total Expenses 265 220,097 13,582 (3,938 ) 230,006 (Loss) Income from Operations (265 ) 79,703 21,514 — 100,952 Interest expense, net (40,780 ) (97 ) (11,649 ) — (52,526 ) Foreign currency transaction gain 349 5 — — 354 Loss on early extinguishment of debt (14,927 ) — — — (14,927 ) (Loss) Income before Income Taxes and Equity in Net Earnings of Subsidiaries (55,623 ) 79,611 9,865 — 33,853 (Benefit from) provision for income taxes (18,889 ) 27,034 3,351 — 11,496 (Loss) Income before Equity in Net Earnings of Subsidiaries (36,734 ) 52,577 6,514 — 22,357 Net earnings of subsidiaries 59,091 6,514 — (65,605 ) — Net Income (Loss) $ 22,357 $ 59,091 $ 6,514 $ (65,605 ) $ 22,357 Other comprehensive gain (loss), net of tax: Foreign currency translation gain (loss) 4,561 4,197 365 (4,562 ) 4,561 Total other comprehensive gain (loss), net of tax 4,561 4,197 365 (4,562 ) 4,561 Comprehensive Income (Loss) $ 26,918 $ 63,288 $ 6,879 $ (70,167 ) $ 26,918 CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Nine Months Ended September 30, 2016 (in thousands) Guarantor Non-Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Revenue $ — $ 478,434 $ 64,697 $ — $ 543,131 Cost of Revenue — 182,729 47,692 — 230,421 Gross Profit — 295,705 17,005 — 312,710 Expenses Marketing — 72,488 1,012 — 73,500 Operations and technology — 58,642 3,064 — 61,706 General and administrative 185 72,867 3,695 — 76,747 Depreciation and amortization — 11,936 68 — 12,004 Total Expenses 185 215,933 7,839 — 223,957 (Loss) Income from Operations (185 ) 79,772 9,166 — 88,753 Interest (expense) income, net (39,793 ) 613 (8,878 ) — (48,058 ) Foreign currency transaction gain 2,184 — — — 2,184 (Loss) Income before Income Taxes and Equity in Net Earnings of Subsidiaries (37,794 ) 80,385 288 — 42,879 (Benefit from) provision for income taxes (14,977 ) 31,853 115 — 16,991 (Loss) Income before Equity in Net Earnings of Subsidiaries (22,817 ) 48,532 173 — 25,888 Net earnings of subsidiaries 48,705 173 — (48,878 ) — Net Income (Loss) $ 25,888 $ 48,705 $ 173 $ (48,878 ) $ 25,888 Other comprehensive (loss) gain, net of tax: Foreign currency translation (loss) gain (5,070 ) (6,342 ) 1,270 5,072 (5,070 ) Total other comprehensive (loss) gain, net of tax (5,070 ) (6,342 ) 1,270 5,072 (5,070 ) Comprehensive Income (Loss) $ 20,818 $ 42,363 $ 1,443 $ (43,806 ) $ 20,818 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Nine Months Ended September 30, 2017 (in thousands) Guarantor Non-Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Cash Flows from Operating Activities $ (17,931 ) $ 346,948 $ (8,712 ) $ (9,008 ) $ 311,297 Cash Flows from Investing Activities Loans and finance receivables originated or acquired — (974,211 ) (24,122 ) — (998,333 ) Securitized loans transferred — 201,518 (201,518 ) — — Loans and finance receivables repaid — 467,011 205,463 — 672,474 Change in restricted cash — (337 ) (2,693 ) — (3,030 ) Purchases of property and equipment — (10,651 ) (153 ) — (10,804 ) Capital contributions to subsidiaries — (11,785 ) — 11,785 — Other investing activities — 1,798 — — 1,798 Net cash (used in) provided by investing activities — (326,657 ) (23,023 ) 11,785 (337,895 ) Cash Flows from Financing Activities (Payments for) proceeds from member's equity — (9,008 ) 11,785 (2,777 ) — Debt issuance costs paid (9,564 ) — — — (9,564 ) Debt prepayment penalty (11,335 ) — — — (11,335 ) Treasury shares purchased (2,115 ) — — — (2,115 ) Issuance of Senior Notes 250,000 — — — 250,000 Repayments of Senior Notes (155,000 ) — — — (155,000 ) Borrowings under revolving line of credit 30,000 — — — 30,000 Repayments under revolving line of credit, net (30,000 ) — — — (30,000 ) Borrowings under securitization facility — — 137,200 — 137,200 Repayments under securitization facility — — (116,085 ) — (116,085 ) Net cash provided by (used in) financing activities 71,986 (9,008 ) 32,900 (2,777 ) 93,101 Effect of exchange rates on cash — 3,656 (39 ) — 3,617 Net increase in cash and cash equivalents 54,055 14,939 1,126 — 70,120 Cash and cash equivalents at beginning of year — 36,057 3,877 — 39,934 Cash and cash equivalents at end of period $ 54,055 $ 50,996 $ 5,003 $ — $ 110,054 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Nine Months Ended September 30, 2016 (in thousands) Guarantor Non-Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Cash Flows from Operating Activities $ 87,477 $ 216,799 $ 40,569 $ (44,138 ) $ 300,707 Cash Flows from Investing Activities Loans and finance receivables originated or acquired — (976,614 ) (10,641 ) — (987,255 ) Securitized loans transferred — 278,076 (278,076 ) — — Loans and finance receivables repaid — 525,636 126,229 — 651,865 Change in restricted cash — (14,656 ) (18,120 ) — (32,776 ) Purchases of property and equipment — (11,262 ) (204 ) — (11,466 ) Capital contributions to subsidiaries (43,962 ) (8,005 ) — 51,967 — Other investing activities — 72 — — 72 Net cash (used in) provided by investing activities (43,962 ) (206,753 ) (180,812 ) 51,967 (379,560 ) Cash Flows from Financing Activities (Payments for) proceeds from member's equity — (176 ) 8,005 (7,829 ) — Debt issuance costs paid — — (3,516 ) — (3,516 ) Treasury shares purchased (115 ) — — — (115 ) Borrowings under revolving line of credit 45,000 — — — 45,000 Repayments under revolving line of credit (88,400 ) — — — (88,400 ) Borrowings under securitization facility — — 218,961 — 218,961 Repayments under securitization facility — — (82,008 ) — (82,008 ) Net cash (used in) provided by financing activities (43,515 ) (176 ) 141,442 (7,829 ) 89,922 Effect of exchange rates on cash — (7,670 ) 216 — (7,454 ) Net increase in cash and cash equivalents — 2,200 1,415 — 3,615 Cash and cash equivalents at beginning of year — 40,927 1,139 — 42,066 Cash and cash equivalents at end of period $ — $ 43,127 $ 2,554 $ — $ 45,681 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events Subsequent events have been reviewed through the date these financial statements were available to be issued. Amendment of 2016-1 Securitization Facility On October 20, 2017, the Company and certain of its subsidiaries amended and restated the 2016‑1 Securitization Facility (the “Amended Facility”). The counterparties to the Amended Facility included certain purchasers, the Administrative Agent and the Indenture Trustee. The Amended Facility relates to Receivables that have been and will be originated or acquired under the Company’s NetCredit brand by the Originators and that meet specified eligibility criteria. Under the Amended Facility, additional Receivables may be sold to the Issuer and serviced by another subsidiary of the Company. In connection with the amendment and restatement, all of the outstanding notes issued by the Issuer prior to the Closing Date were redeemed and the Issuer issued an initial term note with an initial principal amount of $181.1 million (the “2017 Initial Term Note”) and variable funding notes (the “2017 Variable Funding Notes”) with an aggregate committed availability of $75 million per quarter with an option to increase the commitment to $90 million with the consent of the holders of the 2017 Variable Funding Notes. As described below, the Issuer will subsequently issue term notes (the “2017 Term Notes”) and, together with the 2017 Initial Term Note and the 2017 Variable Funding Notes, (the “2017 Securitization Notes”) at the end of each calendar quarter. The maximum principal amount of the 2017 Securitization Notes that may be outstanding at any time under the Amended Facility is $275 million. On each of January 2, 2018, April 2, 2018, July 2, 2018, October 1, 2018, December 31, 2018 and April 1, 2019, the Receivables financed under the 2017 Variable Funding Notes will be allocated to a 2017 Term Note, which 2017 Term Note will be issued to the holders of the 2017 Variable Funding Notes and the 2017 Variable Funding Note on such date will be reduced to zero. The 2017 Securitization Notes are non-recourse to the Company and mature at various dates, the latest of which will be April 15, 2021 (the “2017 Final Maturity Date”). The 2017 Securitization Notes are issued pursuant to an amended and restated indenture, dated as of the Closing Date, between the Issuer and the Indenture Trustee. The 2017 Securitization Notes bear interest at a rate per annum equal to One-Month LIBOR (subject to a floor) plus 7.50%. In addition, the Issuer paid certain customary upfront closing fees to the Administrative Agent and will pay customary annual commitment and other fees to the purchasers under the Amended Facility. Subject to certain exceptions, the Issuer is not permitted to prepay or redeem any of the 2017 Securitization Notes prior to April 15, 2019 except for a one-time prepayment of the 2017 Securitization Notes related to a removal of Receivables in an amount no greater than $100 million. Following such date, the Issuer is permitted to voluntarily prepay any of the 2017 Securitization Notes, subject to an optional redemption premium. Interest and principal payments on the 2017 Securitization Notes will be made monthly. Any remaining amounts outstanding will be payable no later than the 2017 Final Maturity Date. All amounts due under the 2017 Securitization Notes are secured by all of the Issuer’s assets, which include the Receivables transferred to the Issuer, related rights under the Receivables, specified bank accounts and certain other related collateral. The Amended Facility documents contain customary provisions for securitizations, including: representations and warranties as to the eligibility of the Receivables and other matters; indemnification for specified losses not including losses due to the inability of consumers to repay their loans; covenants regarding special purpose entity matters and other subjects; and default and termination provisions which provide for the acceleration of the 2017 Securitization Notes under the Amended Facility in circumstances including, but not limited to, failure to make payments when due, servicer defaults, certain insolvency events, breaches of representations, warranties or covenants, failure to maintain the security interest in the receivables, and defaults under other material indebtedness. On October 26, 2017, the Issuer and the Indenture Trustee amended the Amended Facility to permit a holder of a 2017 Term Note or the 2017 Initial Term Note to exchange its notes for notes with an alternative structure with terms not materially different to the Issuer than the exchanged Term Notes or Initial Term Notes. |
Significant Accounting Polici23
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation On September 7, 2011, Cash America International, Inc. (“Cash America,” now known as FirstCash, Inc. due to its merger with First Cash Financial Services, Inc. on September 1, 2016), formed a new company, Enova International, Inc. (the “Company”). On September 13, 2011, Cash America contributed to the Company all of the stock of its wholly-owned subsidiary, Enova Online Services, Inc., in exchange for 33 million shares of the Company’s common stock. The Company became an independent, publicly traded company on November 13, 2014 when Cash America completed the tax-free spin-off of approximately 80% of the outstanding shares of the Company to holders of Cash America’s common stock (the “Spin-off”). Cash America (and then First Cash) retained approximately 20% of the Company’s stock but completed the sale of its entire holding in the Company as of December 6, 2016. The consolidated financial statements of the Company reflect the historical results of operations and cash flows of the Company during each respective period. The financial statements include goodwill and intangible assets arising from businesses previously acquired. The Company operates an internet-based lending platform to serve customers in need of cash to fulfill their financial responsibilities. Through a network of direct and indirect marketing channels, the Company offers funds to its customers through a variety of unsecured loan and finance receivable products. The business is operated primarily through the internet to provide convenient, fully-automated financial solutions to its customers. The Company originates, arranges, guarantees or purchases consumer loans and provides financing to small businesses through a line of credit account, installment loan or receivables purchase agreement product (“RPAs”). Consumer loans include short-term loans, line of credit accounts and installment loans. RPAs represent a right to receive future receivables from a small business. “Loans and finance receivables” include consumer loans, small business lines of credit, small business installment loans and RPAs. The Company consolidates any variable interest entity (“VIE”) where it has been determined it is the primary beneficiary. The primary beneficiary is the entity which has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance as well as the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE. The financial statements presented as of September 30, 2017 and 2016 and for the three and nine-month periods ended September 30, 2017 and 2016 are unaudited but, in management’s opinion, include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for such interim periods. Operating results for three and nine-month periods are not necessarily indicative of the results that may be expected for the full fiscal year. These financial statements and related notes should be read in conjunction with the Company’s audited consolidated financial statements as of December 31, 2016 and 2015 and for the years ended December 31, 2016, 2015 and 2014 and related notes, which are included on Form 10-K filed with the SEC on February 24, 2017. |
Restricted Cash | Restricted Cash The Company includes funds to be used for future debt payments relating to its securitization transactions and escrow deposits in restricted cash and cash equivalents. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue based on the financing products and services it offers and on loans it acquires. “Revenue” in the consolidated statements of income includes: interest income, finance charges, fees for services provided through the Company’s credit services organization and credit access business programs (“CSO programs”) (“CSO fees”), revenue on RPAs, service charges, draw fees, minimum billing fees, purchase fees, late fees and non-sufficient funds fees as permitted by applicable laws and pursuant to the agreement with the customer. For short-term loans that the Company offers, interest and finance charges are recognized on an effective yield basis over the term of the loan. For line of credit accounts, interest is recognized over the reporting period based upon the balance outstanding and the contractual interest rate, draw fees are recognized on an effective yield basis over the estimated outstanding period of the draw, and minimum billing fees are recognized when assessed to the customer. For installment loans, interest is recognized on an effective yield basis over the term of the loan. For RPAs, revenue and purchase fees are recognized on an effective yield basis over the projected delivery term of the agreements and fees are recognized when assessed. CSO fees are recognized on an effective yield basis over the term of the loan. Late and nonsufficient funds fees are recognized when assessed to the customer. Direct costs associated with originating loans and purchasing RPAs, such as third-party customer acquisition costs, are deferred and amortized against revenue on an effective yield basis over the term of the loan or |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination. In accordance with Accounting Standards Codification (“ASC”) 350, Goodwill, The Company first assesses qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. In assessing the qualitative factors, management considers relevant events and circumstances including but not limited to macroeconomic conditions, industry and market environment, overall financial performance of the Company, cash flow from operating activities, market capitalization and stock price. If the Company determines that the two-step quantitative impairment test is required, management uses the income approach to complete its annual goodwill assessment. The income approach uses future cash flows and estimated terminal values for the Company that are discounted using a market participant perspective to determine the fair value, which is then compared to the carrying value to determine if there is impairment. The income approach includes assumptions about revenue growth rates, operating margins and terminal growth rates discounted by an estimated weighted-average cost of capital derived from other publicly-traded companies that are similar but not identical from an operational and economic standpoint. The Company completed its annual assessment of goodwill as of June 30, 2017 based on qualitative factors and determined that the fair value of its goodwill exceeded carrying value, and, as a result, no impairment existed at that date. Although no goodwill impairment was noted, there can be no assurances that future goodwill impairments will not occur. |
Adopted Accounting Standards | Adopted In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Improvements to Employee Share-Based Payment Accounting In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) Accounting Standards to be Adopted in Future Periods In May 2017, the FASB issued ASU 2017-09, Compensation–Stock Compensation (Topic 718): Scope of Modification Accounting In January 2017, the FASB issued ASU 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets, Revenue from Contracts with Customers (Topic 606) In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) – Clarifying the Definition of a Business In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash Statement of Cash Flows, In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016‑01”), which requires that equity investments, except for those accounted for under the equity method or those that result in consolidation of the investee, be measured at fair value, with subsequent changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. ASU 2016-01 also impacts the presentation and disclosure requirements for financial instruments. ASU 2016-01 is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted only for certain provisions. The Company does not expect that the adoption of ASU 2016-01 will have a material effect on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. Deferral of the Effective Date Principal versus Agent Considerations (Reporting Revenue Gross versus Net) Identifying Performance Obligations and Licensing Narrow-Scope Improvements and Practical Expedients, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers The Company has completed its initial assessment of the guidance and determined its loan and finance receivables are excluded from the scope of ASU 2014-09. As a result of this scope exception, the Company has concluded the impact to the consolidated financial statements will not be material in the period of adoption and in future periods. The Company is finalizing its assessment of ASU 2014-09 and the impact on its financial statement disclosures |
Out-of-Period Adjustment | Out-of-Period Adjustment In a review of marketing expenses related to the origination of loans, the Company determined during the quarter that certain amounts should be deferred over the life the corresponding loans. The Company recorded a reduction to revenue and marketing expense of $0.7 million and $1.9 million, respectively, in the third quarter of 2017 as an out-of-period adjustment related to amounts from prior periods previously recognized as expense. The Company believes this adjustment was not material to the current period or any previously issued financial statements. |
Current and Delinquent Loans and Finance Receivables | Current and Delinquent Loans and Finance Receivables The Company classifies its loans and finance receivables as either current or delinquent. Short-term loans are considered delinquent when payment of an amount due is not made as of the due date. If a line of credit account or installment loan customer misses one payment, that payment is considered delinquent and the balance of the loan is considered current. If a line of credit account or installment loan customer does not make two consecutive payments, the entire account or loan is classified as delinquent and placed on a non-accrual status. The Company allows for normal payment processing time before considering a loan delinquent but does not provide for any additional grace period. The Company does not accrue interest on delinquent loans and does not resume accrual of interest on a delinquent loan unless it is returned to current status. In addition, delinquent loans generally may not be renewed, and if, during its attempt to collect on a delinquent loan, the Company allows additional time for payment through a payment plan or a promise to pay, it is still considered delinquent. Generally, all payments received are first applied against accrued but unpaid interest and fees and then against the principal balance of the loan. |
Allowance and Liability for Estimated Losses on Loans and Finance Receivables | Allowance and Liability for Estimated Losses on Loans and Finance Receivables The Company monitors the performance of its loan and finance receivable portfolios and maintains either an allowance or liability for estimated losses on loans and finance receivables (including revenue, fees and/or interest) at a level estimated to be adequate to absorb losses inherent in the portfolio. The allowance for losses on the Company’s owned loans and finance receivables reduces the outstanding loans and finance receivables balance in the consolidated balance sheets. The liability for estimated losses related to loans guaranteed under its CSO programs is initially recorded at fair value and is included in “Accounts payable and accrued expenses” in the consolidated balance sheets. In determining the allowance or liability for estimated losses on loans and finance receivables, the Company applies a documented systematic methodology. In calculating the allowance or liability for receivable losses, outstanding loans and finance receivables are divided into discrete groups of short-term loans, line of credit accounts, installment loans and RPAs and are analyzed as current or delinquent. Increases in either the allowance or the liability, net of charge-offs and recoveries, are recorded as a “Cost of revenue” in the consolidated statements of income. The allowance or liability for short-term loans classified as current is based on historical loss rates adjusted for recent default trends for current loans. For delinquent short-term loans, the allowance or liability is based on a six-month rolling average of loss rates by stage of collection. For line of credit account, installment loan and RPA portfolios, the Company generally uses either a migration analysis or roll-rate based methodology to estimate losses inherent in the portfolio. The allowance or liability calculation under the migration analysis and roll-rate methodology is based on historical charge-off experience and the loss emergence period, which represents the average amount of time between the first occurrence of a loss event and the charge-off of a loan or RPA. The factors the Company considers to assess the adequacy of the allowance or liability include past due performance, historical behavior of monthly vintages, underwriting changes and recent trends in delinquency in the migration analysis. The roll-rate methodology is based on delinquency status, payment history and recency factors to estimate future charge-offs. The Company fully reserves for loans and finance receivables once the receivable or a portion of the receivable has been classified as delinquent for 60 consecutive days and generally charges off loans and finance receivables between 60 – 65 days delinquent. If a loan or finance receivable is deemed uncollectible before it is fully reserved, it is charged off at that point. Loans and finance receivables classified as delinquent generally have an age of one to 64 days from the date any portion of the receivable became delinquent, as defined above. Recoveries on loans and finance receivables previously charged to the allowance are credited to the allowance when collected. |
Derivative Instruments Policy | The Company has periodically used forward currency exchange contracts to minimize the effects of foreign currency risk in the United Kingdom. The forward currency exchange contracts are non-designated derivatives. Any gain or loss resulting from these contracts is recorded as income or loss and is included in “Foreign currency transaction gain” in the Company’s consolidated statements of income. As of September 30, 2017, the Company did not manage its exposure to risk from foreign currency exchange rate fluctuations through the use of forward currency exchange contracts in the United Kingdom or Brazil. |
Loans and Finance Receivables24
Loans and Finance Receivables, Credit Quality Information and Allowances and Liabilities for Estimated Losses on Loans and Finance Receivables (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Schedule of Revenue Generated from Loans and Finance Receivables | Revenue generated from the Company’s loans and finance receivables for the three and nine months ended September 30, 2017 and 2016 was as follows (dollars in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Short-term loans $ 49,875 $ 51,999 $ 144,074 $ 146,237 Line of credit accounts 68,889 59,090 187,172 158,338 Installment loans and RPAs 98,929 84,823 268,069 237,320 Total loans and finance receivables revenue 217,693 195,912 599,315 541,895 Other 185 31 730 1,236 Total revenue $ 217,878 $ 195,943 $ 600,045 $ 543,131 |
Components of Company-Owned Loans and Finance Receivables | The components of Company-owned loans and finance receivables at September 30, 2017 and 2016 and December 31, 2016 were as follows (dollars in thousands): As of September 30, 2017 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Current receivables $ 40,588 $ 146,891 $ 480,522 $ 668,001 Delinquent receivables: Delinquent payment amounts (1) — 5,913 3,382 9,295 Receivables on non-accrual status 27,131 1,885 36,484 65,500 Total delinquent receivables 27,131 7,798 39,866 74,795 Total loans and finance receivables, gross 67,719 154,689 520,388 742,796 Less: Allowance for losses (19,161 ) (26,810 ) (59,089 ) (105,060 ) Loans and finance receivables, net $ 48,558 $ 127,879 $ 461,299 $ 637,736 As of September 30, 2016 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Current receivables $ 35,815 $ 120,951 $ 412,010 $ 568,776 Delinquent receivables: Delinquent payment amounts (1) — 4,975 1,721 6,696 Receivables on non-accrual status 24,310 6,462 31,368 62,140 Total delinquent receivables 24,310 11,437 33,089 68,836 Total loans and finance receivables, gross 60,125 132,388 445,099 637,612 Less: Allowance for losses (17,726 ) (26,795 ) (50,226 ) (94,747 ) Loans and finance receivables, net $ 42,399 $ 105,593 $ 394,873 $ 542,865 As of December 31, 2016 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Current receivables $ 35,516 $ 130,576 $ 413,638 $ 579,730 Delinquent receivables: Delinquent payment amounts (1) — 4,560 2,110 6,670 Receivables on non-accrual status 27,489 9,047 37,559 74,095 Total delinquent receivables 27,489 13,607 39,669 80,765 Total loans and finance receivables, gross 63,005 144,183 453,307 660,495 Less: Allowance for losses (17,770 ) (26,594 ) (54,581 ) (98,945 ) Loans and finance receivables, net $ 45,235 $ 117,589 $ 398,726 $ 561,550 (1) Represents the delinquent portion of installment loans and line of credit account balances for customers that have only missed one payment and RPA customers who have not delivered agreed upon receivables. See “Current and Delinquent Loans and Finance Receivables” above for additional information. |
Schedule of Changes in Allowance for Losses | Changes in the allowance for losses for the Company-owned loans and finance receivables and the liability for losses on the Company’s guarantees of third-party lender-owned loans during the three and nine months ended September 30, 2017 and 2016 were as follows (dollars in thousands): Three Months Ended September 30, 2017 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Allowance for losses for Company-owned loans and finance receivables: Balance at beginning of period $ 15,688 $ 22,847 $ 45,304 $ 83,839 Cost of revenue 23,724 23,439 60,102 107,265 Charge-offs (25,521 ) (22,708 ) (57,228 ) (105,457 ) Recoveries 5,082 3,232 10,630 18,944 Effect of foreign currency translation 188 — 281 469 Balance at end of period $ 19,161 $ 26,810 $ 59,089 $ 105,060 Liability for third-party lender-owned loans: Balance at beginning of period $ 1,761 $ — $ 180 $ 1,941 Increase (decrease) in liability 125 — (49 ) 76 Balance at end of period $ 1,886 $ — $ 131 $ 2,017 Three Months Ended September 30, 2016 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Allowance for losses for Company-owned loans and finance receivables: Balance at beginning of period $ 13,354 $ 18,029 $ 42,437 $ 73,820 Cost of revenue 20,464 29,739 45,293 95,496 Charge-offs (21,301 ) (24,639 ) (44,804 ) (90,744 ) Recoveries 5,345 3,666 7,421 16,432 Effect of foreign currency translation (136 ) — (121 ) (257 ) Balance at end of period $ 17,726 $ 26,795 $ 50,226 $ 94,747 Liability for third-party lender-owned loans: Balance at beginning of period $ 1,392 $ — $ 441 $ 1,833 Increase (decrease) in liability 66 — (172 ) (106 ) Balance at end of period $ 1,458 $ — $ 269 $ 1,727 Nine Months Ended September 30, 2017 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Allowance for losses for Company-owned loans and finance receivables: Balance at beginning of period $ 17,770 $ 26,594 $ 54,581 $ 98,945 Cost of revenue 55,865 63,138 150,063 269,066 Charge-offs (70,962 ) (73,252 ) (177,002 ) (321,216 ) Recoveries 16,009 10,330 30,782 57,121 Effect of foreign currency translation 479 — 665 1,144 Balance at end of period $ 19,161 $ 26,810 $ 59,089 $ 105,060 Liability for third-party lender-owned loans: Balance at beginning of period $ 1,716 $ — $ 280 $ 1,996 Increase (decrease) in liability 170 — (149 ) 21 Balance at end of period $ 1,886 $ — $ 131 $ 2,017 Nine Months Ended September 30, 2016 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Allowance for losses for Company-owned loans and finance receivables: Balance at beginning of period $ 14,652 $ 15,727 $ 36,943 $ 67,322 Cost of revenue 47,860 63,461 119,128 230,449 Charge-offs (59,664 ) (63,236 ) (127,473 ) (250,373 ) Recoveries 15,448 10,843 21,217 47,508 Effect of foreign currency translation (570 ) — 411 (159 ) Balance at end of period $ 17,726 $ 26,795 $ 50,226 $ 94,747 Liability for third-party lender-owned loans: Balance at beginning of period $ 1,298 $ — $ 458 $ 1,756 Increase (decrease) in liability 160 — (189 ) (29 ) Balance at end of period $ 1,458 $ — $ 269 $ 1,727 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt Instruments and Balances Outstanding | The Company’s long-term debt instruments and balances outstanding as of September 30, 2017 and 2016 and December 31, 2016 were as follows (dollars in thousands): September 30, December 31, 2017 2016 2016 Securitization notes $ 186,533 $ 136,953 $ 165,419 Revolving line of credit — 15,000 — 9.75% senior notes due 2021 342,407 495,427 495,622 8.50% senior notes due 2024 250,000 — — Subtotal 778,940 647,380 661,041 Less: Long-term debt issuance costs (13,545 ) (12,201 ) (11,130 ) Total long-term debt $ 765,395 $ 635,179 $ 649,911 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Numerators and Denominators of Basic and Diluted Earnings per Share Computations | The following table sets forth the reconciliation of numerators and denominators of basic and diluted earnings per share computations for the three and nine months ended September 30, 2017 and 2016 (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Numerator: Net (loss) income $ (3,368 ) $ 7,837 $ 22,357 $ 25,888 Denominator: Total weighted average basic shares 33,670 33,211 33,533 33,176 Shares applicable to stock-based compensation — 347 586 184 Total weighted average diluted shares 33,670 33,558 34,119 33,360 Earnings per share: Net (loss) income per share – basic $ (0.10 ) $ 0.24 $ 0.67 $ 0.78 Net (loss) income per share – diluted $ (0.10 ) $ 0.23 $ 0.66 $ 0.78 |
Operating Segment Information (
Operating Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Summary of Domestic, International Operations and Corporate Services | The following tables present information on the Company’s domestic, international operations and corporate services as of and for the three and nine months ended September 30, 2017 and 2016 (dollars in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Revenue Domestic $ 181,584 $ 165,330 $ 504,326 $ 449,100 International 36,294 30,613 95,719 94,031 Total revenue $ 217,878 $ 195,943 $ 600,045 $ 543,131 Income (Loss) from operations Domestic $ 55,767 $ 44,015 $ 176,402 $ 148,717 International (1,983 ) 5,659 3,939 16,136 Corporate services (26,107 ) (21,577 ) (79,389 ) (76,100 ) Total income from operations $ 27,677 $ 28,097 $ 100,952 $ 88,753 Depreciation and amortization Domestic $ 1,634 $ 1,385 $ 4,692 $ 4,552 International 396 409 1,136 1,813 Corporate services 1,503 1,995 4,568 5,639 Total depreciation and amortization $ 3,533 $ 3,789 $ 10,396 $ 12,004 Expenditures for property and equipment Domestic $ 2,231 $ 2,395 $ 4,271 $ 5,425 International 1,281 1,043 3,401 2,489 Corporate services 1,991 379 3,132 3,552 Total expenditures for property and equipment $ 5,503 $ 3,817 $ 10,804 $ 11,466 September 30, 2017 2016 Property and equipment, net Domestic $ 22,541 $ 19,259 International 7,106 5,094 Corporate services 16,910 23,133 Total property and equipment, net $ 46,557 $ 47,486 Assets Domestic $ 899,495 $ 823,737 International 126,583 98,842 Corporate services 113,700 52,500 Total assets $ 1,139,778 $ 975,079 |
Summary of Company's Revenue by Geographical Region | The following table presents the Company’s revenue by geographic region for the three and nine months ended September 30, 2017 and 2016 (dollars in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Revenue United States $ 181,584 $ 165,330 $ 504,326 $ 449,100 United Kingdom 30,679 26,793 82,528 78,882 Other international countries 5,615 3,820 13,191 15,149 Total revenue $ 217,878 $ 195,943 $ 600,045 $ 543,131 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Exit and Disposal Activity and Liability Balances | The following table is a summary of the exit and disposal activity and liability balances as a result of the headquarters relocation for the nine months ended September 30, 2017 and the twelve months ended December 31, 2016 (in thousands): Lease Termination Costs Other Exit Costs Total Balance at January 1, 2016 $ 1,425 $ 204 $ 1,629 Payments (1,132 ) — (1,132 ) Adjustments 344 (69 ) 275 Balance at December 31, 2016 $ 637 $ 135 $ 772 Balance at January 1, 2017 $ 637 $ 135 $ 772 Payments (554 ) (9 ) (563 ) Adjustments (83 ) (126 ) (209 ) Balance at September 30, 2017 $ — $ — $ — |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Effect Of Derivative Instruments | The following table presents information on the effect of derivative instruments on the consolidated results of operations and accumulated other comprehensive income for the nine months ended September 30, 2017 and 2016 (dollars in thousands): Gains (Losses) Gains (Losses) Recognized in Gains (Losses) Reclassified From Income Recognized in AOCI AOCI into Income Nine Months Ended Nine Months Ended Nine Months Ended September 30, September 30, September 30, 2017 2016 2017 2016 2017 2016 Non-designated derivatives: Forward currency exchange contracts (1) $ — $ 3,020 $ — $ — $ — $ — Total $ — $ 3,020 $ — $ — $ — $ — (1) The gains (losses) on these derivatives substantially offset the (losses) gains on the economically hedged portion of the foreign intercompany balances. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Variable Interest Entities [Abstract] | |
Summary of Carrying Amounts of Consolidated VIE Assets and Liabilities | The carrying amounts of consolidated VIE assets and liabilities associated with the Company’s securitization entities were as follows (dollars in thousands): September 30, December 31, 2017 2016 2016 Assets Cash and cash equivalents $ — $ 105 $ — Restricted cash and cash equivalents 22,161 18,119 19,468 Loans and finance receivables, net 274,363 176,016 216,766 Other receivables and prepaid expenses — 3 3 Other assets 2,056 — 2,459 Total assets $ 298,580 $ 194,243 $ 238,696 Liabilities Accounts payable and accrued expenses $ 1,793 $ 991 $ 1,350 Long-term debt 185,771 134,537 163,550 Total liabilities $ 187,564 $ 135,528 $ 164,900 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Assets and Liabilities Measured on Recurring Basis | The Company’s financial assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2017 and 2016 and December 31, 2016 are as follows (dollars in thousands): September 30, Fair Value Measurements Using 2017 Level 1 Level 2 Level 3 Financial assets (liabilities): Non-qualified savings plan assets (1) $ 1,443 $ 1,443 $ — $ — Contingent consideration (2,358 ) — — (2,358 ) Total $ (915 ) $ 1,443 $ — $ (2,358 ) September 30, Fair Value Measurements Using 2016 Level 1 Level 2 Level 3 Financial assets (liabilities): Non-qualified savings plan assets (1) $ 1,528 $ 1,528 $ — $ — Contingent consideration (5,658 ) — — (5,658 ) Total $ (4,130 ) $ 1,528 $ — $ (5,658 ) December 31, Fair Value Measurements Using 2016 Level 1 Level 2 Level 3 Financial assets (liabilities): Non-qualified savings plan assets (1) $ 1,590 $ 1,590 $ — $ — Contingent consideration (2,358 ) — — (2,358 ) Total $ (768 ) $ 1,590 $ — $ (2,358 ) (1) The non-qualified savings plan assets are included in “Other receivables and prepaid expenses” in the Company’s consolidated balance sheets and have an offsetting liability of equal amount, which is included in “Accounts payable and accrued expenses” in the Company’s consolidated balance sheets. |
Fair Value Measurement for Contingent Consideration | The changes in the fair value of the contingent consideration, which is Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Contingent consideration Total Balance at December 31, 2015 $ 5,658 $ 5,658 Adjustments — — Balance at September 30, 2016 $ 5,658 $ 5,658 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Contingent consideration Total Balance at December 31, 2016 $ 2,358 $ 2,358 Adjustments — — Balance at September 30, 2017 $ 2,358 $ 2,358 |
Financial Assets and Liabilities Not Measured at Fair Value | The Company’s financial assets and liabilities as of September 30, 2017 and 2016 and December 31, 2016 that are not measured at fair value in the consolidated balance sheets are as follows (dollars in thousands): Balance at September 30, Fair Value Measurements Using 2017 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 110,054 $ 110,054 $ — $ — Short-term loans and line of credit accounts, net (1) 176,437 — — 176,437 Installment loans and RPAs, net (1)(4) 461,299 — — 496,377 Restricted cash (5) 29,866 29,866 — — Investment in unconsolidated investee (2)(3) 6,703 — — 6,703 Total $ 784,359 $ 139,920 $ — $ 679,517 Financial liabilities: Liability for estimated losses on consumer loans guaranteed by the Company $ 2,017 $ — $ — $ 2,017 Promissory note 3,000 — — 3,245 Securitization Notes 186,533 — 189,005 — 9.75% senior notes due 2021 342,407 — 363,796 — 8.50% senior notes due 2024 250,000 — 252,000 — Total $ 783,957 $ — $ 804,801 $ 5,262 Balance at September 30, Fair Value Measurements Using 2016 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 45,681 $ 45,681 $ — $ — Short-term loans and line of credit accounts, net (1) 147,992 — — 147,992 Installment loans and RPAs, net (1)(4) 394,873 — — 448,111 Restricted cash (5) 39,272 39,272 — — Investment in unconsolidated investee (2)(3) 6,703 — — 6,703 Total $ 634,521 $ 84,953 $ — $ 602,806 Financial liabilities: Liability for estimated losses on consumer loans guaranteed by the Company $ 1,727 $ — $ — $ 1,727 Promissory note 3,000 — — 3,076 Credit agreement borrowings 15,000 — — 15,000 Securitization Notes 136,953 — 139,911 — 9.75% senior notes due 2021 495,427 — 455,875 — Total $ 652,107 $ — $ 595,786 $ 19,803 Balance at December 31, Fair Value Measurements Using 2016 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 39,934 $ 39,934 $ — $ — Short-term loans and line of credit accounts, net (1) 162,824 — — 162,824 Installment loans and RPAs, net (1)(4) 398,726 — — 430,895 Restricted cash (5) 26,306 26,306 — — Investment in unconsolidated investee (2)(3) 6,703 — — 6,703 Total $ 634,493 $ 66,240 $ — $ 600,422 Financial liabilities: Liability for estimated losses on consumer loans guaranteed by the Company $ 1,996 $ — $ — $ 1,996 Promissory note 3,000 — — 3,111 Securitization Notes 165,419 — 168,216 — 9.75% senior notes due 2021 495,622 — 495,940 — Total $ 666,037 $ — $ 664,156 $ 5,107 (1) Short-term loans, line of credit accounts, installment loans and RPAs are included in “Loans and finance receivables, net” in the consolidated balance sheets. (2) Investment in unconsolidated investee is included in “Other assets” in the consolidated balance sheets. (3) See Note 4 for additional information related to the investment in unconsolidated investee. (4) Installment loan and RPAs, net include $274.4 million, $176.0 million and $216.8 million in net assets of consolidated VIEs as of September 30, 2017 and 2016 and December 31, 2016, respectively. (5) Restricted cash includes $22.2 million, $18.1 million and $19.5 million in assets of consolidated VIEs as of September 30, 2017 and 2016 and December 31, 2016, respectively. |
Condensed Consolidating Finan32
Condensed Consolidating Financial Statements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEETS As of September 30, 2017 (dollars in thousands) Guarantor Non-Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ 54,055 $ 50,996 $ 5,003 $ — $ 110,054 Restricted cash — 7,705 22,161 — 29,866 Loans and finance receivables, net — 351,627 286,109 — 637,736 Income taxes receivable 105,140 (95,852 ) 31 — 9,319 Other receivables and prepaid expenses 245 21,271 2,280 — 23,796 Property and equipment, net — 45,925 632 — 46,557 Goodwill — 267,015 — — 267,015 Intangible assets, net — 4,593 — — 4,593 Investment in subsidiaries 362,991 45,924 — (408,915 ) — Intercompany receivable 343,514 — — (343,514 ) — Other assets 1,826 6,960 2,056 — 10,842 Total assets $ 867,771 $ 706,164 $ 318,272 $ (752,429 ) $ 1,139,778 Liabilities and Stockholders' Equity Accounts payable and accrued expenses $ 13,795 $ 62,348 $ 2,754 $ — $ 78,897 Intercompany payables — 252,154 91,360 (343,514 ) — Deferred tax liabilities, net (453 ) 21,634 (500 ) — 20,681 Long-term debt 579,624 — 185,771 — 765,395 Total liabilities 592,966 336,136 279,385 (343,514 ) 864,973 Commitments and contingencies Stockholders' equity 274,805 370,028 38,887 (408,915 ) 274,805 Total liabilities and stockholders' equity $ 867,771 $ 706,164 $ 318,272 $ (752,429 ) $ 1,139,778 CONDENSED CONSOLIDATING BALANCE SHEETS As of September 30, 2016 (dollars in thousands) Guarantor Non-Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ — $ 43,127 $ 2,554 $ — $ 45,681 Restricted cash — 21,152 18,120 — 39,272 Loans and finance receivables, net — 358,142 184,723 — 542,865 Income taxes receivable — — — — — Other receivables and prepaid expenses 141 18,222 286 — 18,649 Property and equipment, net — 47,050 436 — 47,486 Goodwill — 267,012 — — 267,012 Intangible assets, net — 5,670 5 — 5,675 Investment in subsidiaries 278,999 22,358 — (301,357 ) — Intercompany receivable 413,472 — — (413,472 ) — Other assets 460 7,979 — — 8,439 Total assets $ 693,072 $ 790,712 $ 206,124 $ (714,829 ) $ 975,079 Liabilities and Stockholders' Equity Accounts payable and accrued expenses $ 16,386 $ 67,931 $ 1,116 $ — $ 85,433 Intercompany payables — 357,650 55,826 (413,476 ) — Income taxes currently payable (56,364 ) 61,521 (8 ) — 5,149 Deferred tax liabilities, net (677 ) 17,394 (484 ) — 16,233 Long-term debt 500,642 — 134,537 — 635,179 Total liabilities 459,987 504,496 190,987 (413,476 ) 741,994 Commitments and contingencies Stockholders' equity 233,085 286,216 15,137 (301,353 ) 233,085 Total liabilities and stockholders' equity $ 693,072 $ 790,712 $ 206,124 $ (714,829 ) $ 975,079 CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2016 (dollars in thousands) Guarantor Non-Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ — $ 36,057 $ 3,877 $ — $ 39,934 Restricted cash — 6,838 19,468 — 26,306 Loans and finance receivables, net — 335,160 226,390 — 561,550 Other receivables and prepaid expenses 127 19,095 302 — 19,524 Property and equipment, net — 46,507 593 — 47,100 Goodwill — 267,010 — — 267,010 Intangible assets, net — 5,400 4 — 5,404 Investment in subsidiaries 294,646 25,131 — (319,777 ) — Intercompany receivable 363,942 — — (363,942 ) — Other assets 597 7,995 2,459 — 11,051 Total assets $ 659,312 $ 749,193 $ 253,093 $ (683,719 ) $ 977,879 Liabilities and Stockholders' Equity Accounts payable and accrued expenses $ 4,310 $ 65,714 $ 1,647 $ — $ 71,671 Intercompany payables — 295,763 68,179 (363,942 ) — Income taxes currently payable (72,704 ) 73,006 (20 ) — 282 Deferred tax liabilities, net (354 ) 15,156 (486 ) — 14,316 Long-term debt 486,361 — 163,550 — 649,911 Total liabilities 417,613 449,639 232,870 (363,942 ) 736,180 Commitments and contingencies Stockholders' equity 241,699 299,554 20,223 (319,777 ) 241,699 Total liabilities and stockholders' equity $ 659,312 $ 749,193 $ 253,093 $ (683,719 ) $ 977,879 |
Condensed Consolidating Statements of Income and Comprehensive Income | CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended September 30, 2017 (in thousands) Guarantor Non-Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Revenue $ — $ 178,908 $ 40,374 $ (1,404 ) $ 217,878 Cost of Revenue — 79,349 27,992 — 107,341 Gross Profit — 99,559 12,382 (1,404 ) 110,537 Expenses Marketing — 26,423 577 — 27,000 Operations and technology — 22,911 4,252 — 27,163 General and administrative 131 25,746 691 (1,404 ) 25,164 Depreciation and amortization — 3,486 47 — 3,533 Total Expenses 131 78,566 5,567 (1,404 ) 82,860 (Loss) Income from Operations (131 ) 20,993 6,815 — 27,677 Interest expense, net (14,238 ) (33 ) (4,021 ) — (18,292 ) Foreign currency transaction gain 65 — — — 65 Loss on early extinguishment of debt (14,927 ) — — — (14,927 ) (Loss) Income before Income Taxes and Equity in Net Earnings of Subsidiaries (29,231 ) 20,960 2,794 — (5,477 ) (Benefit from) provision for income taxes (9,760 ) 6,746 905 — (2,109 ) (Loss) Income before Equity in Net Earnings of Subsidiaries (19,471 ) 14,214 1,889 — (3,368 ) Net earnings of subsidiaries 16,103 1,889 — (17,992 ) — Net (Loss) Income $ (3,368 ) $ 16,103 $ 1,889 $ (17,992 ) $ (3,368 ) Other comprehensive gain (loss), net of tax: Foreign currency translation gain (loss) 2,052 1,304 749 (2,053 ) 2,052 Total other comprehensive gain (loss), net of tax 2,052 1,304 749 (2,053 ) 2,052 Comprehensive (Loss) Income $ (1,316 ) $ 17,407 $ 2,638 $ (20,045 ) $ (1,316 ) CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended September 30, 2016 (in thousands) Guarantor Non-Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Revenue $ — $ 170,288 $ 24,157 $ 1,498 $ 195,943 Cost of Revenue — 78,283 17,108 — 95,391 Gross Profit — 92,005 7,049 1,498 100,552 Expenses Marketing — 26,348 374 — 26,722 Operations and technology — 19,505 1,132 — 20,637 General and administrative 37 18,539 1,233 1,498 21,307 Depreciation and amortization — 3,761 28 — 3,789 Total Expenses 37 68,153 2,767 1,498 72,455 (Loss) Income from Operations (37 ) 23,852 4,282 — 28,097 Interest expense, net (13,342 ) (123 ) (2,652 ) — (16,117 ) Foreign currency transaction gain 145 — — — 145 (Loss) Income before Income Taxes and Equity in Net Earnings of Subsidiaries (13,234 ) 23,729 1,630 — 12,125 (Benefit from) provision for income taxes (4,832 ) 8,451 669 — 4,288 (Loss) Income before Equity in Net Earnings of Subsidiaries (8,402 ) 15,278 961 — 7,837 Net earnings of subsidiaries 16,239 961 — (17,200 ) — Net Income (Loss) $ 7,837 $ 16,239 $ 961 $ (17,200 ) $ 7,837 Other comprehensive (loss) gain, net of tax: Foreign currency translation (loss) gain (1,245 ) (1,084 ) (160 ) 1,244 (1,245 ) Total other comprehensive (loss) gain, net of tax (1,245 ) (1,084 ) (160 ) 1,244 (1,245 ) Comprehensive Income (Loss) $ 6,592 $ 15,155 $ 801 $ (15,956 ) $ 6,592 CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Nine Months Ended September 30, 2017 (in thousands) Guarantor Non-Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Revenue $ — $ 497,081 $ 106,902 $ (3,938 ) $ 600,045 Cost of Revenue — 197,281 71,806 — 269,087 Gross Profit — 299,800 35,096 (3,938 ) 330,958 Expenses Marketing — 68,686 1,307 — 69,993 Operations and technology — 65,090 7,422 — 72,512 General and administrative 265 76,060 4,718 (3,938 ) 77,105 Depreciation and amortization — 10,261 135 — 10,396 Total Expenses 265 220,097 13,582 (3,938 ) 230,006 (Loss) Income from Operations (265 ) 79,703 21,514 — 100,952 Interest expense, net (40,780 ) (97 ) (11,649 ) — (52,526 ) Foreign currency transaction gain 349 5 — — 354 Loss on early extinguishment of debt (14,927 ) — — — (14,927 ) (Loss) Income before Income Taxes and Equity in Net Earnings of Subsidiaries (55,623 ) 79,611 9,865 — 33,853 (Benefit from) provision for income taxes (18,889 ) 27,034 3,351 — 11,496 (Loss) Income before Equity in Net Earnings of Subsidiaries (36,734 ) 52,577 6,514 — 22,357 Net earnings of subsidiaries 59,091 6,514 — (65,605 ) — Net Income (Loss) $ 22,357 $ 59,091 $ 6,514 $ (65,605 ) $ 22,357 Other comprehensive gain (loss), net of tax: Foreign currency translation gain (loss) 4,561 4,197 365 (4,562 ) 4,561 Total other comprehensive gain (loss), net of tax 4,561 4,197 365 (4,562 ) 4,561 Comprehensive Income (Loss) $ 26,918 $ 63,288 $ 6,879 $ (70,167 ) $ 26,918 CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Nine Months Ended September 30, 2016 (in thousands) Guarantor Non-Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Revenue $ — $ 478,434 $ 64,697 $ — $ 543,131 Cost of Revenue — 182,729 47,692 — 230,421 Gross Profit — 295,705 17,005 — 312,710 Expenses Marketing — 72,488 1,012 — 73,500 Operations and technology — 58,642 3,064 — 61,706 General and administrative 185 72,867 3,695 — 76,747 Depreciation and amortization — 11,936 68 — 12,004 Total Expenses 185 215,933 7,839 — 223,957 (Loss) Income from Operations (185 ) 79,772 9,166 — 88,753 Interest (expense) income, net (39,793 ) 613 (8,878 ) — (48,058 ) Foreign currency transaction gain 2,184 — — — 2,184 (Loss) Income before Income Taxes and Equity in Net Earnings of Subsidiaries (37,794 ) 80,385 288 — 42,879 (Benefit from) provision for income taxes (14,977 ) 31,853 115 — 16,991 (Loss) Income before Equity in Net Earnings of Subsidiaries (22,817 ) 48,532 173 — 25,888 Net earnings of subsidiaries 48,705 173 — (48,878 ) — Net Income (Loss) $ 25,888 $ 48,705 $ 173 $ (48,878 ) $ 25,888 Other comprehensive (loss) gain, net of tax: Foreign currency translation (loss) gain (5,070 ) (6,342 ) 1,270 5,072 (5,070 ) Total other comprehensive (loss) gain, net of tax (5,070 ) (6,342 ) 1,270 5,072 (5,070 ) Comprehensive Income (Loss) $ 20,818 $ 42,363 $ 1,443 $ (43,806 ) $ 20,818 |
Condensed Consolidating Statements of Cash Flows | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Nine Months Ended September 30, 2017 (in thousands) Guarantor Non-Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Cash Flows from Operating Activities $ (17,931 ) $ 346,948 $ (8,712 ) $ (9,008 ) $ 311,297 Cash Flows from Investing Activities Loans and finance receivables originated or acquired — (974,211 ) (24,122 ) — (998,333 ) Securitized loans transferred — 201,518 (201,518 ) — — Loans and finance receivables repaid — 467,011 205,463 — 672,474 Change in restricted cash — (337 ) (2,693 ) — (3,030 ) Purchases of property and equipment — (10,651 ) (153 ) — (10,804 ) Capital contributions to subsidiaries — (11,785 ) — 11,785 — Other investing activities — 1,798 — — 1,798 Net cash (used in) provided by investing activities — (326,657 ) (23,023 ) 11,785 (337,895 ) Cash Flows from Financing Activities (Payments for) proceeds from member's equity — (9,008 ) 11,785 (2,777 ) — Debt issuance costs paid (9,564 ) — — — (9,564 ) Debt prepayment penalty (11,335 ) — — — (11,335 ) Treasury shares purchased (2,115 ) — — — (2,115 ) Issuance of Senior Notes 250,000 — — — 250,000 Repayments of Senior Notes (155,000 ) — — — (155,000 ) Borrowings under revolving line of credit 30,000 — — — 30,000 Repayments under revolving line of credit, net (30,000 ) — — — (30,000 ) Borrowings under securitization facility — — 137,200 — 137,200 Repayments under securitization facility — — (116,085 ) — (116,085 ) Net cash provided by (used in) financing activities 71,986 (9,008 ) 32,900 (2,777 ) 93,101 Effect of exchange rates on cash — 3,656 (39 ) — 3,617 Net increase in cash and cash equivalents 54,055 14,939 1,126 — 70,120 Cash and cash equivalents at beginning of year — 36,057 3,877 — 39,934 Cash and cash equivalents at end of period $ 54,055 $ 50,996 $ 5,003 $ — $ 110,054 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Nine Months Ended September 30, 2016 (in thousands) Guarantor Non-Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Cash Flows from Operating Activities $ 87,477 $ 216,799 $ 40,569 $ (44,138 ) $ 300,707 Cash Flows from Investing Activities Loans and finance receivables originated or acquired — (976,614 ) (10,641 ) — (987,255 ) Securitized loans transferred — 278,076 (278,076 ) — — Loans and finance receivables repaid — 525,636 126,229 — 651,865 Change in restricted cash — (14,656 ) (18,120 ) — (32,776 ) Purchases of property and equipment — (11,262 ) (204 ) — (11,466 ) Capital contributions to subsidiaries (43,962 ) (8,005 ) — 51,967 — Other investing activities — 72 — — 72 Net cash (used in) provided by investing activities (43,962 ) (206,753 ) (180,812 ) 51,967 (379,560 ) Cash Flows from Financing Activities (Payments for) proceeds from member's equity — (176 ) 8,005 (7,829 ) — Debt issuance costs paid — — (3,516 ) — (3,516 ) Treasury shares purchased (115 ) — — — (115 ) Borrowings under revolving line of credit 45,000 — — — 45,000 Repayments under revolving line of credit (88,400 ) — — — (88,400 ) Borrowings under securitization facility — — 218,961 — 218,961 Repayments under securitization facility — — (82,008 ) — (82,008 ) Net cash (used in) provided by financing activities (43,515 ) (176 ) 141,442 (7,829 ) 89,922 Effect of exchange rates on cash — (7,670 ) 216 — (7,454 ) Net increase in cash and cash equivalents — 2,200 1,415 — 3,615 Cash and cash equivalents at beginning of year — 40,927 1,139 — 42,066 Cash and cash equivalents at end of period $ — $ 43,127 $ 2,554 $ — $ 45,681 |
Significant Accounting Polici33
Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 06, 2016 | Sep. 30, 2016 | Nov. 13, 2014 | Sep. 13, 2011 | |
Significant Accounting Policies [Line Items] | |||||||
Common stock, shares issued | 33,828,668 | 33,364,525 | 33,260,017 | ||||
Spin off percentage | 80.00% | ||||||
Goodwill impairment loss | $ 0 | ||||||
Reduction to revenue | $ (700,000) | ||||||
Reduction to marketing expense | $ (1,900,000) | ||||||
FirstCash | |||||||
Significant Accounting Policies [Line Items] | |||||||
Retained percentage of stock after spin-off | 20.00% | ||||||
Cash America International Inc. | |||||||
Significant Accounting Policies [Line Items] | |||||||
Common stock, shares issued | 33,000,000 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) | Jun. 23, 2015 | Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||||||
Date of acquisition | Jun. 23, 2015 | |||||
Business acquisition, asset acquired | $ 26,400,000 | |||||
Business acquisition, payment in cash | 17,700,000 | |||||
Business Combination, promissory note | 3,000,000 | |||||
Estimated contingent consideration payable | 5,700,000 | $ 2,358,000 | $ 2,358,000 | $ 5,658,000 | $ 2,358,000 | $ 5,658,000 |
Change fair value measurement contingent consideration | $ 0 | $ 0 | $ 0 | $ 3,300,000 | ||
Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Total consideration paid | $ 71,000,000 |
Loans and Finance Receivables35
Loans and Finance Receivables, Credit Quality Information and Allowances and Liabilities for Estimated Losses on Loans and Finance Receivables - Schedule of Revenue Generated from Loans and Finance Receivables (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accounts Notes And Loans Receivable [Line Items] | ||||
Total loans and finance receivables revenue | $ 217,693 | $ 195,912 | $ 599,315 | $ 541,895 |
Other | 185 | 31 | 730 | 1,236 |
Total revenue | 217,878 | 195,943 | 600,045 | 543,131 |
Short-term Loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total loans and finance receivables revenue | 49,875 | 51,999 | 144,074 | 146,237 |
Line of Credit Accounts | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total loans and finance receivables revenue | 68,889 | 59,090 | 187,172 | 158,338 |
Installment Loans and RPAs | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total loans and finance receivables revenue | $ 98,929 | $ 84,823 | $ 268,069 | $ 237,320 |
Loans and Finance Receivables36
Loans and Finance Receivables, Credit Quality Information and Allowances and Liabilities for Estimated Losses on Loans and Finance Receivables - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | |
Accounts Notes And Loans Receivable [Line Items] | |||
Days for delinquent loans to be charged off | 60 days | ||
Active consumer loans owned by third-party lenders | $ 28.9 | $ 32.2 | $ 29.7 |
Accrual for losses on consumer loan guaranty obligations | $ 2 | $ 2 | $ 1.7 |
Minimum | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Days for delinquent loans to be charged off | 60 days | ||
Delinquent loans expiry period (in days) | 1 day | ||
Maximum | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Days for delinquent loans to be charged off | 65 days | ||
Delinquent loans expiry period (in days) | 64 days |
Loans and Finance Receivables37
Loans and Finance Receivables, Credit Quality Information and Allowances and Liabilities for Estimated Losses on Loans and Finance Receivables - Components of Company-Owned Loans and Finance Receivables (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | |
Accounts Notes And Loans Receivable [Line Items] | |||||||
Current receivables | $ 668,001 | $ 579,730 | $ 568,776 | ||||
Delinquent payment amounts | [1] | 9,295 | 6,670 | 6,696 | |||
Receivables on non-accrual status | 65,500 | 74,095 | 62,140 | ||||
Total delinquent receivables | 74,795 | 80,765 | 68,836 | ||||
Total loans and finance receivables, gross | 742,796 | 660,495 | 637,612 | ||||
Less: Allowance for losses | (105,060) | $ (83,839) | (98,945) | (94,747) | $ (73,820) | $ (67,322) | |
Loans and finance receivables, net | 637,736 | 561,550 | 542,865 | ||||
Short-term Loans | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Current receivables | 40,588 | 35,516 | 35,815 | ||||
Receivables on non-accrual status | 27,131 | 27,489 | 24,310 | ||||
Total delinquent receivables | 27,131 | 27,489 | 24,310 | ||||
Total loans and finance receivables, gross | 67,719 | 63,005 | 60,125 | ||||
Less: Allowance for losses | (19,161) | (15,688) | (17,770) | (17,726) | (13,354) | (14,652) | |
Loans and finance receivables, net | 48,558 | 45,235 | 42,399 | ||||
Line of Credit Accounts | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Current receivables | 146,891 | 130,576 | 120,951 | ||||
Delinquent payment amounts | [1] | 5,913 | 4,560 | 4,975 | |||
Receivables on non-accrual status | 1,885 | 9,047 | 6,462 | ||||
Total delinquent receivables | 7,798 | 13,607 | 11,437 | ||||
Total loans and finance receivables, gross | 154,689 | 144,183 | 132,388 | ||||
Less: Allowance for losses | (26,810) | (22,847) | (26,594) | (26,795) | (18,029) | (15,727) | |
Loans and finance receivables, net | 127,879 | 117,589 | 105,593 | ||||
Installment Loans and RPAs | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Current receivables | 480,522 | 413,638 | 412,010 | ||||
Delinquent payment amounts | [1] | 3,382 | 2,110 | 1,721 | |||
Receivables on non-accrual status | 36,484 | 37,559 | 31,368 | ||||
Total delinquent receivables | 39,866 | 39,669 | 33,089 | ||||
Total loans and finance receivables, gross | 520,388 | 453,307 | 445,099 | ||||
Less: Allowance for losses | (59,089) | $ (45,304) | (54,581) | (50,226) | $ (42,437) | $ (36,943) | |
Loans and finance receivables, net | $ 461,299 | $ 398,726 | $ 394,873 | ||||
[1] | Represents the delinquent portion of installment loans and line of credit account balances for customers that have only missed one payment and RPA customers who have not delivered agreed upon receivables. See “Current and Delinquent Loans and Finance Receivables” above for additional information. |
Loans and Finance Receivables38
Loans and Finance Receivables, Credit Quality Information and Allowances and Liabilities for Estimated Losses on Loans and Finance Receivables - Schedule of Changes in Allowance for Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Allowance for losses for Company-owned loans and finance receivables | ||||
Balance at beginning of period | $ 83,839 | $ 73,820 | $ 98,945 | $ 67,322 |
Cost of revenue | 107,265 | 95,496 | 269,066 | 230,449 |
Charge-offs | (105,457) | (90,744) | (321,216) | (250,373) |
Recoveries | 18,944 | 16,432 | 57,121 | 47,508 |
Effect of foreign currency translation | 469 | (257) | 1,144 | (159) |
Balance at end of period | 105,060 | 94,747 | 105,060 | 94,747 |
Liability for third-party lender-owned loans | ||||
Balance at beginning of period | 1,941 | 1,833 | 1,996 | 1,756 |
Increase (decrease) in liability | 76 | (106) | 21 | (29) |
Balance at end of period | 2,017 | 1,727 | 2,017 | 1,727 |
Short-term Loans | ||||
Allowance for losses for Company-owned loans and finance receivables | ||||
Balance at beginning of period | 15,688 | 13,354 | 17,770 | 14,652 |
Cost of revenue | 23,724 | 20,464 | 55,865 | 47,860 |
Charge-offs | (25,521) | (21,301) | (70,962) | (59,664) |
Recoveries | 5,082 | 5,345 | 16,009 | 15,448 |
Effect of foreign currency translation | 188 | (136) | 479 | (570) |
Balance at end of period | 19,161 | 17,726 | 19,161 | 17,726 |
Liability for third-party lender-owned loans | ||||
Balance at beginning of period | 1,761 | 1,392 | 1,716 | 1,298 |
Increase (decrease) in liability | 125 | 66 | 170 | 160 |
Balance at end of period | 1,886 | 1,458 | 1,886 | 1,458 |
Line of Credit Accounts | ||||
Allowance for losses for Company-owned loans and finance receivables | ||||
Balance at beginning of period | 22,847 | 18,029 | 26,594 | 15,727 |
Cost of revenue | 23,439 | 29,739 | 63,138 | 63,461 |
Charge-offs | (22,708) | (24,639) | (73,252) | (63,236) |
Recoveries | 3,232 | 3,666 | 10,330 | 10,843 |
Balance at end of period | 26,810 | 26,795 | 26,810 | 26,795 |
Installment Loans and RPAs | ||||
Allowance for losses for Company-owned loans and finance receivables | ||||
Balance at beginning of period | 45,304 | 42,437 | 54,581 | 36,943 |
Cost of revenue | 60,102 | 45,293 | 150,063 | 119,128 |
Charge-offs | (57,228) | (44,804) | (177,002) | (127,473) |
Recoveries | 10,630 | 7,421 | 30,782 | 21,217 |
Effect of foreign currency translation | 281 | (121) | 665 | 411 |
Balance at end of period | 59,089 | 50,226 | 59,089 | 50,226 |
Liability for third-party lender-owned loans | ||||
Balance at beginning of period | 180 | 441 | 280 | 458 |
Increase (decrease) in liability | (49) | (172) | (149) | (189) |
Balance at end of period | $ 131 | $ 269 | $ 131 | $ 269 |
Investment in Unconsolidated 39
Investment in Unconsolidated Investee - Additional information (Detail) - USD ($) | 9 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | |
Investments All Other Investments [Abstract] | |||
Cost method investments | $ 6,700,000 | $ 6,700,000 | $ 6,700,000 |
Investment impairment | $ 0 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt Instruments and Balances Outstanding (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Debt Instrument [Line Items] | |||
Securitization notes | $ 186,533 | $ 165,419 | $ 136,953 |
Subtotal | 778,940 | 661,041 | 647,380 |
Less: Long-term debt issuance costs | (13,545) | (11,130) | (12,201) |
Total long-term debt | 765,395 | 649,911 | 635,179 |
9.75% Senior Notes Due 2021 | |||
Debt Instrument [Line Items] | |||
Senior notes | 342,407 | $ 495,622 | 495,427 |
8.50% Senior Notes Due 2024 | |||
Debt Instrument [Line Items] | |||
Senior notes | $ 250,000 | ||
Revolving Line of Credit | |||
Debt Instrument [Line Items] | |||
Revolving line of credit | $ 15,000 |
Long-Term Debt - Summary of L41
Long-Term Debt - Summary of Long-Term Debt Instruments and Balances Outstanding (Parenthetical) (Detail) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Sep. 01, 2017 | May 30, 2014 | |
9.75% Senior Notes Due 2021 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 9.75% | 9.75% | 9.75% | 9.75% | |
Debt instrument, maturity date | Jun. 1, 2021 | Jun. 1, 2021 | Jun. 1, 2021 | ||
8.50% Senior Notes Due 2024 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 8.50% | 8.50% | |||
Debt instrument, maturity date | Sep. 1, 2024 |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Detail) - USD ($) | Dec. 01, 2016 | Oct. 20, 2016 | Jan. 15, 2016 | Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Sep. 01, 2017 | May 30, 2014 |
Debt Instrument [Line Items] | |||||||||
Aggregate availability of variable funding notes | $ 20,000,000 | ||||||||
Maximum principal amount of securitization notes outstanding | $ 175,000,000 | ||||||||
Carrying amount of securitization notes | $ 186,533,000 | $ 186,533,000 | $ 136,953,000 | $ 165,419,000 | |||||
Loss on early extinguishment of debt | $ 14,927,000 | $ 14,927,000 | |||||||
Revolving Line of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Revolving line of credit | 15,000,000 | ||||||||
8.50% Senior Unsecured Notes Due 2024 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 250,000,000 | ||||||||
Debt instrument, maturity date | Sep. 1, 2024 | ||||||||
Debt instrument, interest rate | 8.50% | 8.50% | 8.50% | ||||||
Debt instrument, payment terms | The 2024 Senior Notes bear interest at a rate of 8.50% annually on the principal amount payable semi-annually in arrears on March 1 and September 1 of each year, beginning on March 1, 2018. | ||||||||
Debt instrument, percentage of sale price | 100.00% | ||||||||
Notes redemption, description | The 2024 Senior Notes are redeemable at the Company’s option, in whole or in part, (i) at any time prior to September 1, 2020 at 100% of the aggregate principal amount of 2024 Senior Notes redeemed plus the applicable “make whole” premium specified in the indenture that governs the Company’s 2024 Notes (the "2024 Senior Notes Indenture"), plus accrued and unpaid interest, if any, to the redemption date and (ii) at any time on or after September 1, 2020 at the premium, if any, specified in the 2024 Senior Notes Indenture that will decrease over time, plus accrued and unpaid interest, if any, to the redemption date. | ||||||||
Note redeem rate | 100.00% | ||||||||
Unamortized debt issuance cost | $ 7,500,000 | $ 7,500,000 | |||||||
Interest expense recognized | 1,900,000 | ||||||||
Debt issuance cost | 7,600,000 | 7,600,000 | |||||||
Carrying amount of senior notes | 242,500,000 | $ 242,500,000 | |||||||
8.50% Senior Unsecured Notes Due 2024 | $250.0 million 8.50% Senior Unsecured Notes Redemption, Under Additional Option Available | |||||||||
Debt Instrument [Line Items] | |||||||||
Note redeem rate | 108.50% | ||||||||
Percentage of notes principal redeemable | 40.00% | ||||||||
2016-1 Securitization Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, revolving period | 9 months | ||||||||
Debt instrument, maturity date | Oct. 15, 2020 | ||||||||
Debt instrument, amended revolving period | 2017-10 | ||||||||
Debt instrument, amended latest period | 2021-10 | ||||||||
Securitization Notes issued pursuant to an indenture, date | Jan. 15, 2016 | ||||||||
Maximum principal amount of securitization facility | $ 275,000,000 | ||||||||
Variable funding note maximum principal amount | 40,000,000 | ||||||||
Variable funding note maximum principal amount thereafter | $ 30,000,000 | ||||||||
Extended Maturity period of revolving facility | 2017-10 | ||||||||
Weighted average interest rate | 9.50% | ||||||||
Carrying amount of securitization notes | 173,700,000 | $ 173,700,000 | 134,500,000 | ||||||
Unamortized debt issuance cost | 800,000 | 800,000 | 2,400,000 | ||||||
Interest expense recognized | 11,400,000 | 9,500,000 | |||||||
Non-cash amortization of debt issuance costs | $ 1,100,000 | 2,600,000 | |||||||
Debt issuance cost, amortization period | 4 years | ||||||||
2016-1 Securitization Facility | Agent's Base Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, interest rate | 1.00% | ||||||||
2016-1 Securitization Facility | Prime Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 7.75% | ||||||||
2016-1 Securitization Facility | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, effective percentage | 8.75% | ||||||||
2016-2 Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Carrying amount of securitization notes | 12,100,000 | $ 12,100,000 | |||||||
Interest expense recognized | $ 1,400,000 | ||||||||
Debt issuance cost, amortization period | 36 months | ||||||||
Date at Issuer not permitted to prepay or redeem any outstanding securitization notes prior | Oct. 1, 2018 | ||||||||
Debt issuance cost | 200,000 | $ 200,000 | |||||||
2016-2 Facility | Redpoint Capital Asset Funding, LLC | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Annual percentage rate for securitized consumer loan | 90.00% | ||||||||
2016-2 Facility | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, effective percentage | 12.50% | ||||||||
2014 Revolving Credit Facility Due 2017 | Jefferies Group, LLC | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | 35,000,000 | $ 35,000,000 | |||||||
2014 Revolving Credit Facility Due 2017 | Jefferies Group, LLC | Unsecured Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt issuance cost, amortization period | 37 months | ||||||||
Debt issuance cost | 1,600,000 | $ 1,600,000 | |||||||
Credit agreement, maturity date | Jun. 30, 2017 | ||||||||
Revolving line of credit | $ 0 | $ 0 | |||||||
2017 Revolving Credit Facility Due 2020 | Green Bank, N.A. | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt issuance cost, amortization period | 34 months | ||||||||
Debt issuance cost | 2,000,000 | $ 2,000,000 | |||||||
Credit agreement, maturity date | May 1, 2020 | ||||||||
Revolving line of credit | 0 | $ 0 | |||||||
Maximum borrowing capacity | 40,000,000 | 40,000,000 | |||||||
2017 Revolving Credit Facility Due 2020 | Green Bank, N.A. | Letters of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | 20,000,000 | 20,000,000 | |||||||
Borrowings outstanding under credit agreement | $ 8,000,000 | $ 8,000,000 | |||||||
2017 Revolving Credit Facility Due 2020 | Green Bank, N.A. | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Commitment fee percentage | 0.30% | ||||||||
2017 Revolving Credit Facility Due 2020 | Green Bank, N.A. | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Commitment fee percentage | 0.50% | ||||||||
2017 Revolving Credit Facility Due 2020 | Prime Rate | Green Bank, N.A. | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 1.00% | ||||||||
9.75% Senior Unsecured Notes Due 2021 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 500,000,000 | ||||||||
Debt instrument, maturity date | Jun. 1, 2021 | Jun. 1, 2021 | Jun. 1, 2021 | ||||||
Debt instrument, interest rate | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | ||||
Debt instrument, effective percentage | 10.00% | ||||||||
Unamortized debt issuance cost | $ 5,300,000 | $ 5,300,000 | $ 9,800,000 | ||||||
Interest expense recognized | 38,000,000 | 38,700,000 | |||||||
Non-cash amortization of debt issuance costs | $ 1,500,000 | 1,600,000 | |||||||
Debt issuance cost, amortization period | 7 years | ||||||||
Carrying amount of senior notes | 337,100,000 | $ 337,100,000 | 485,600,000 | ||||||
Debt instrument, repurchase of principal amount | 155,000,000 | 155,000,000 | |||||||
Aggregate cash consideration paid for repurchase of principal amount with accrued interest | 166,300,000 | ||||||||
Loss on early extinguishment of debt | 14,900,000 | ||||||||
Loss on early extinguishment of debt, net of tax | 9,200,000 | ||||||||
Debt instrument unamortized discount | $ 2,600,000 | 2,600,000 | 4,600,000 | ||||||
Non-cash amortization discount | $ 600,000 | $ 600,000 | |||||||
Weighted average interest rates | 10.58% | 10.58% | 10.75% | ||||||
Initial Term Note | 2016-1 Securitization Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 107,400,000 | ||||||||
Unsecured consumer loans | $ 134,000,000 | ||||||||
Revolving Note | 2016-2 Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 20,000,000 | ||||||||
Unsecured consumer loans | $ 25,000,000 | ||||||||
Debt instrument, maturity date | Dec. 1, 2019 | ||||||||
Expected increase in maximum principal balance | $ 40,000,000 | ||||||||
Enova Standby And Letter Of Credit | Revolving Line of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 20,000,000 | ||||||||
Borrowings outstanding under credit agreement | $ 6,600,000 | $ 6,600,000 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Numerators and Denominators of Basic and Diluted Earnings per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Numerator: | ||||
Net (loss) income | $ (3,368) | $ 7,837 | $ 22,357 | $ 25,888 |
Weighted average common shares outstanding: | ||||
Total weighted average basic shares | 33,670 | 33,211 | 33,533 | 33,176 |
Shares applicable to stock-based compensation | 347 | 586 | 184 | |
Total weighted average diluted shares | 33,670 | 33,558 | 34,119 | 33,360 |
Earnings Per Share: | ||||
Net (loss) income per share – basic | $ (0.10) | $ 0.24 | $ 0.67 | $ 0.78 |
Net (loss) income per share – diluted | $ (0.10) | $ 0.23 | $ 0.66 | $ 0.78 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock options not included in computation of diluted net (loss) income per share | 2,138,180 | 1,467,202 | 1,552,045 | 1,783,073 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock options not included in computation of diluted net (loss) income per share | 1,592,937 | 343,663 | 242,677 | 520,688 |
Operating Segment Information -
Operating Segment Information - Additional Information (Detail) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2017USD ($)Segment | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segment | Segment | 1 | ||
Property and equipment, net | $ | $ 46,557 | $ 47,100 | $ 47,486 |
Operating Segment Information46
Operating Segment Information - Summary of Domestic, International Operations and Corporate Services (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Revenues [Abstract] | |||||
Revenue | $ 217,878 | $ 195,943 | $ 600,045 | $ 543,131 | |
Income (Loss) from operations [Abstract] | |||||
Income from operations | 27,677 | 28,097 | 100,952 | 88,753 | |
Depreciation and amortization [Abstract] | |||||
Depreciation and amortization | 3,533 | 3,789 | 10,396 | 12,004 | |
Expenditures for property and equipment [Abstract] | |||||
Expenditures for property and equipment | 5,503 | 3,817 | 10,804 | 11,466 | |
Property and equipment, net [Abstract] | |||||
Property and equipment, net | 46,557 | 47,486 | 46,557 | 47,486 | $ 47,100 |
Assets | |||||
Assets | 1,139,778 | 975,079 | 1,139,778 | 975,079 | $ 977,879 |
Domestic | |||||
Revenues [Abstract] | |||||
Revenue | 181,584 | 165,330 | 504,326 | 449,100 | |
Income (Loss) from operations [Abstract] | |||||
Income from operations | 55,767 | 44,015 | 176,402 | 148,717 | |
Depreciation and amortization [Abstract] | |||||
Depreciation and amortization | 1,634 | 1,385 | 4,692 | 4,552 | |
Expenditures for property and equipment [Abstract] | |||||
Expenditures for property and equipment | 2,231 | 2,395 | 4,271 | 5,425 | |
Property and equipment, net [Abstract] | |||||
Property and equipment, net | 22,541 | 19,259 | 22,541 | 19,259 | |
Assets | |||||
Assets | 899,495 | 823,737 | 899,495 | 823,737 | |
International | |||||
Revenues [Abstract] | |||||
Revenue | 36,294 | 30,613 | 95,719 | 94,031 | |
Income (Loss) from operations [Abstract] | |||||
Income from operations | (1,983) | 5,659 | 3,939 | 16,136 | |
Depreciation and amortization [Abstract] | |||||
Depreciation and amortization | 396 | 409 | 1,136 | 1,813 | |
Expenditures for property and equipment [Abstract] | |||||
Expenditures for property and equipment | 1,281 | 1,043 | 3,401 | 2,489 | |
Property and equipment, net [Abstract] | |||||
Property and equipment, net | 7,106 | 5,094 | 7,106 | 5,094 | |
Assets | |||||
Assets | 126,583 | 98,842 | 126,583 | 98,842 | |
Corporate Services | |||||
Income (Loss) from operations [Abstract] | |||||
Income from operations | (26,107) | (21,577) | (79,389) | (76,100) | |
Depreciation and amortization [Abstract] | |||||
Depreciation and amortization | 1,503 | 1,995 | 4,568 | 5,639 | |
Expenditures for property and equipment [Abstract] | |||||
Expenditures for property and equipment | 1,991 | 379 | 3,132 | 3,552 | |
Property and equipment, net [Abstract] | |||||
Property and equipment, net | 16,910 | 23,133 | 16,910 | 23,133 | |
Assets | |||||
Assets | $ 113,700 | $ 52,500 | $ 113,700 | $ 52,500 |
Operating Segment Information47
Operating Segment Information - Summary of Company's Revenue by Geographical Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues [Abstract] | ||||
Revenue | $ 217,878 | $ 195,943 | $ 600,045 | $ 543,131 |
United States | ||||
Revenues [Abstract] | ||||
Revenue | 181,584 | 165,330 | 504,326 | 449,100 |
United Kingdom | ||||
Revenues [Abstract] | ||||
Revenue | 30,679 | 26,793 | 82,528 | 78,882 |
Other International Countries | ||||
Revenues [Abstract] | ||||
Revenue | $ 5,615 | $ 3,820 | $ 13,191 | $ 15,149 |
Commitments and Contingencies -
Commitments and Contingencies - Additional information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($) | Jun. 30, 2015ft² | |
Commitments And Contingencies [Line Items] | ||
Leased area | ft² | 86,000 | |
Estimated sublease income | $ 1.7 | |
Lease Termination Costs and Other Exit Costs | ||
Commitments And Contingencies [Line Items] | ||
Expense related to lease termination penalty | 3.7 | |
Lease Termination Costs | ||
Commitments And Contingencies [Line Items] | ||
Expense related to lease termination penalty | 2.9 | |
Other Exit Costs | ||
Commitments And Contingencies [Line Items] | ||
Expense related to lease termination penalty | $ 0.8 |
Commitments and Contingencies49
Commitments and Contingencies - Exit and Disposal Activity and Liability Balances (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Lease Termination Costs | ||
Commitments And Contingencies [Line Items] | ||
Beginning Balance | $ 637 | $ 1,425 |
Payments | (554) | (1,132) |
Adjustments | (83) | 344 |
Ending Balance | 637 | |
Other Exit Costs | ||
Commitments And Contingencies [Line Items] | ||
Beginning Balance | 135 | 204 |
Payments | (9) | |
Adjustments | (126) | (69) |
Ending Balance | 135 | |
Lease Termination Costs and Other Exit Costs | ||
Commitments And Contingencies [Line Items] | ||
Beginning Balance | 772 | 1,629 |
Payments | (563) | (1,132) |
Adjustments | $ (209) | 275 |
Ending Balance | $ 772 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |||
Outstanding derivative instruments | $ 0 | $ 0 | $ 0 |
Derivative Instruments - Effect
Derivative Instruments - Effect of Derivative Instruments on the Consolidated Results of Operations and Accumulated other Comprehensive Income (Detail) - Non-Designated Derivatives $ in Thousands | 9 Months Ended | |
Sep. 30, 2016USD ($) | ||
Derivative Instruments Gain Loss [Line Items] | ||
Gains (Losses) Recognized in Income | $ 3,020 | |
Forward Currency Exchange Contracts | ||
Derivative Instruments Gain Loss [Line Items] | ||
Gains (Losses) Recognized in Income | $ 3,020 | [1] |
[1] | The gains (losses) on these derivatives substantially offset the (losses) gains on the economically hedged portion of the foreign intercompany balances. |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Jun. 23, 2015 | |
Related Party Transaction [Line Items] | ||||
Business Combination, promissory note | $ 3,000 | |||
Small Business | ||||
Related Party Transaction [Line Items] | ||||
Business Combination, promissory note | $ 3,000 | |||
Promissory note maturity date | Jun. 23, 2018 | |||
Interest expense related to promissory note | $ 95 | $ 91 | ||
Transition services agreement fee income | $ 24 | 27 | ||
Debt instrument, interest rate | 4.00% | |||
Transition services agreement period | 3 years | |||
Cash America | ||||
Related Party Transaction [Line Items] | ||||
Consumer loans reimbursement amount | $ 600 | 700 | ||
FirstCash | ||||
Related Party Transaction [Line Items] | ||||
Related party payable, net | $ 100 | 100 | $ 100 | |
RPAs | Small Business | ||||
Related Party Transaction [Line Items] | ||||
Paid RPAs, amount | $ 400 |
Variable Interest Entities - Su
Variable Interest Entities - Summary of Carrying Amounts of Consolidated VIE Assets and Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Assets | ||||
Cash and cash equivalents | $ 110,054 | $ 39,934 | $ 45,681 | $ 42,066 |
Restricted cash and cash equivalents | 29,866 | 26,306 | 39,272 | |
Loans and finance receivables, net | 637,736 | 561,550 | 542,865 | |
Other receivables and prepaid expenses | 23,796 | 19,524 | 18,649 | |
Other assets | 10,842 | 11,051 | 8,439 | |
Liabilities | ||||
Accounts payable and accrued expenses | 78,897 | 71,671 | 85,433 | |
Long-term debt | 765,395 | 649,911 | 635,179 | |
Variable Interest Entity, Primary Beneficiary | ||||
Assets | ||||
Cash and cash equivalents | 105 | |||
Restricted cash and cash equivalents | 22,161 | 19,468 | 18,119 | |
Loans and finance receivables, net | 274,363 | 216,766 | 176,016 | |
Other receivables and prepaid expenses | 3 | 3 | ||
Other assets | 2,056 | 2,459 | ||
Total assets | 298,580 | 238,696 | 194,243 | |
Liabilities | ||||
Accounts payable and accrued expenses | 1,793 | 1,350 | 991 | |
Long-term debt | 185,771 | 163,550 | 134,537 | |
Total liabilities | $ 187,564 | $ 164,900 | $ 135,528 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Sep. 01, 2017 | May 30, 2014 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Transfer of Liabilities, amount | $ 0 | $ 0 | |||
Transfer of assets, amount | 0 | 0 | |||
Assets fair value non-recurring | 0 | 0 | $ 0 | ||
Liabilities fair value non-recurring | 0 | 0 | 0 | ||
Accrual for losses on consumer loan guaranty obligations | $ 2,000,000 | $ 1,700,000 | $ 2,000,000 | ||
9.75% Senior Notes Due 2021 | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Term of loan | 7 years | ||||
Debt instrument, interest rate | 9.75% | 9.75% | 9.75% | 9.75% | |
Debt instrument, maturity date | Jun. 1, 2021 | Jun. 1, 2021 | Jun. 1, 2021 | ||
8.50% Senior Notes Due 2024 | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Debt instrument, interest rate | 8.50% | 8.50% | |||
Debt instrument, maturity date | Sep. 1, 2024 | ||||
Maximum | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalent maturity period | 90 days | ||||
Maximum | Short-term Loans | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Term of loan | 12 months | ||||
Maximum | Line of Credit Accounts | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Term of loan | 12 months | ||||
Maximum | Installment Loans and RPAs | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Term of loan | 60 months | ||||
Maximum | RPAs | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Estimated delivery term | 18 months | ||||
Minimum | Installment Loans and RPAs | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Term of loan | 2 months | ||||
Minimum | RPAs | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Estimated delivery term | 6 months |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | Jun. 23, 2015 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Contingent consideration | $ (2,358) | $ (2,358) | $ (5,658) | $ (5,658) | $ (5,700) | |
Level 3 | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Contingent consideration | (2,358) | (2,358) | (5,658) | $ (5,658) | ||
Fair Value, Measurements, Recurring | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Non-qualified savings plan assets | [1] | 1,443 | 1,590 | 1,528 | ||
Contingent consideration | (2,358) | (2,358) | (5,658) | |||
Total | (915) | (768) | (4,130) | |||
Fair Value, Measurements, Recurring | Level 1 | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Non-qualified savings plan assets | [1] | 1,443 | 1,590 | 1,528 | ||
Total | 1,443 | 1,590 | 1,528 | |||
Fair Value, Measurements, Recurring | Level 3 | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Contingent consideration | (2,358) | (2,358) | (5,658) | |||
Total | $ (2,358) | $ (2,358) | $ (5,658) | |||
[1] | The non-qualified savings plan assets are included in “Other receivables and prepaid expenses” in the Company’s consolidated balance sheets and have an offsetting liability of equal amount, which is included in “Accounts payable and accrued expenses” in the Company’s consolidated balance sheets. |
Fair Value Measurements - Fai56
Fair Value Measurements - Fair Value Measurement for Contingent Consideration (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Contingent consideration, Beginning balance | $ 2,358,000 | $ 5,658,000 | $ 5,658,000 | |
Contingent consideration, Adjustments | $ 0 | 0 | 0 | 3,300,000 |
Contingent consideration, Ending balance | 2,358,000 | 2,358,000 | 5,658,000 | 2,358,000 |
Level 3 | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Contingent consideration, Beginning balance | 2,358,000 | 5,658,000 | 5,658,000 | |
Contingent consideration, Adjustments | 0 | 0 | ||
Contingent consideration, Ending balance | $ 2,358,000 | $ 2,358,000 | $ 5,658,000 | $ 2,358,000 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Not Measured at Fair Value (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | |
Financial liabilities: | |||||||
Liability for estimated losses on consumer loans guaranteed by the Company | $ 2,017 | $ 1,941 | $ 1,996 | $ 1,727 | $ 1,833 | $ 1,756 | |
Carrying Value | |||||||
Financial assets: | |||||||
Cash and cash equivalents | 110,054 | 39,934 | 45,681 | ||||
Short-term loans and line of credit accounts, net | [1] | 176,437 | 162,824 | 147,992 | |||
Installment loans and RPAs, net | [1],[2] | 461,299 | 398,726 | 394,873 | |||
Restricted cash | [3] | 29,866 | 26,306 | 39,272 | |||
Investment in unconsolidated investee | [4],[5] | 6,703 | 6,703 | 6,703 | |||
Total | 784,359 | 634,493 | 634,521 | ||||
Financial liabilities: | |||||||
Liability for estimated losses on consumer loans guaranteed by the Company | 2,017 | 1,996 | 1,727 | ||||
Promissory note | 3,000 | 3,000 | 3,000 | ||||
Credit agreement borrowings | 15,000 | ||||||
Securitization Notes | 186,533 | 165,419 | 136,953 | ||||
Total | 783,957 | 666,037 | 652,107 | ||||
Carrying Value | 9.75% Senior Notes Due 2021 | |||||||
Financial liabilities: | |||||||
Senior notes | 342,407 | 495,622 | 495,427 | ||||
Carrying Value | 8.50% Senior Notes Due 2024 | |||||||
Financial liabilities: | |||||||
Senior notes | 250,000 | ||||||
Level 1 | Estimated Fair Value | |||||||
Financial assets: | |||||||
Cash and cash equivalents | 110,054 | 39,934 | 45,681 | ||||
Restricted cash | [3] | 29,866 | 26,306 | 39,272 | |||
Total | 139,920 | 66,240 | 84,953 | ||||
Level 2 | Estimated Fair Value | |||||||
Financial liabilities: | |||||||
Securitization Notes | 189,005 | 168,216 | 139,911 | ||||
Total | 804,801 | 664,156 | 595,786 | ||||
Level 2 | Estimated Fair Value | 9.75% Senior Notes Due 2021 | |||||||
Financial liabilities: | |||||||
Senior notes | 363,796 | 495,940 | 455,875 | ||||
Level 2 | Estimated Fair Value | 8.50% Senior Notes Due 2024 | |||||||
Financial liabilities: | |||||||
Senior notes | 252,000 | ||||||
Level 3 | Estimated Fair Value | |||||||
Financial assets: | |||||||
Short-term loans and line of credit accounts, net | [1] | 176,437 | 162,824 | 147,992 | |||
Installment loans and RPAs, net | [1],[2] | 496,377 | 430,895 | 448,111 | |||
Investment in unconsolidated investee | [4],[5] | 6,703 | 6,703 | 6,703 | |||
Total | 679,517 | 600,422 | 602,806 | ||||
Financial liabilities: | |||||||
Liability for estimated losses on consumer loans guaranteed by the Company | 2,017 | 1,996 | 1,727 | ||||
Promissory note | 3,245 | 3,111 | 3,076 | ||||
Credit agreement borrowings | 15,000 | ||||||
Total | $ 5,262 | $ 5,107 | $ 19,803 | ||||
[1] | Short-term loans, line of credit accounts, installment loans and RPAs are included in “Loans and finance receivables, net” in the consolidated balance sheets. | ||||||
[2] | Installment loan and RPAs, net include $274.4 million, $176.0 million and $216.8 million in net assets of consolidated VIEs as of September 30, 2017 and 2016 and December 31, 2016, respectively. | ||||||
[3] | Restricted cash includes $22.2 million, $18.1 million and $19.5 million in assets of consolidated VIEs as of September 30, 2017 and 2016 and December 31, 2016, respectively. | ||||||
[4] | Investment in unconsolidated investee is included in “Other assets” in the consolidated balance sheets. | ||||||
[5] | See Note 4 for additional information related to the investment in unconsolidated investee. |
Fair Value Measurements - Fin58
Fair Value Measurements - Financial Assets and Liabilities Not Measured at Fair Value (Parenthetical) (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Sep. 01, 2017 | May 30, 2014 | |
Variable Interest Entity, Primary Beneficiary | |||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||||
Installment loans and RPAs, net | $ 274.4 | $ 176 | $ 216.8 | ||
Restricted cash | $ 22.2 | $ 18.1 | $ 19.5 | ||
9.75% Senior Notes Due 2021 | |||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||||
Debt instrument, interest rate | 9.75% | 9.75% | 9.75% | 9.75% | |
Debt instrument, maturity date | Jun. 1, 2021 | Jun. 1, 2021 | Jun. 1, 2021 | ||
8.50% Senior Notes Due 2024 | |||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||||
Debt instrument, interest rate | 8.50% | 8.50% | |||
Debt instrument, maturity date | Sep. 1, 2024 |
Condensed Consolidating Finan59
Condensed Consolidating Financial Statements - Additional Information (Detail) | Sep. 30, 2017 |
Guarantor Subsidiaries | |
Condensed Financial Statements Captions [Line Items] | |
Percentage of ownership | 100.00% |
Condensed Consolidating Finan60
Condensed Consolidating Financial Statements - Condensed Consolidating Balance Sheets - (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Assets | ||||
Cash and cash equivalents | $ 110,054 | $ 39,934 | $ 45,681 | $ 42,066 |
Restricted cash | 29,866 | 26,306 | 39,272 | |
Loans and finance receivables, net | 637,736 | 561,550 | 542,865 | |
Income taxes receivable | 9,319 | |||
Other receivables and prepaid expenses | 23,796 | 19,524 | 18,649 | |
Property and equipment, net | 46,557 | 47,100 | 47,486 | |
Goodwill | 267,015 | 267,010 | 267,012 | |
Intangible assets, net | 4,593 | 5,404 | 5,675 | |
Other assets | 10,842 | 11,051 | 8,439 | |
Total assets | 1,139,778 | 977,879 | 975,079 | |
Liabilities and Stockholders' Equity | ||||
Accounts payable and accrued expenses | 78,897 | 71,671 | 85,433 | |
Income taxes currently payable | 282 | 5,149 | ||
Deferred tax liabilities, net | 20,681 | 14,316 | 16,233 | |
Long-term debt | 765,395 | 649,911 | 635,179 | |
Total liabilities | 864,973 | 736,180 | 741,994 | |
Commitments and contingencies | ||||
Stockholders' equity | 274,805 | 241,699 | 233,085 | 205,968 |
Total liabilities and stockholders' equity | 1,139,778 | 977,879 | 975,079 | |
Parent | ||||
Assets | ||||
Cash and cash equivalents | 54,055 | |||
Income taxes receivable | 105,140 | |||
Other receivables and prepaid expenses | 245 | 127 | 141 | |
Investment in subsidiaries | 362,991 | 294,646 | 278,999 | |
Intercompany receivable | 343,514 | 363,942 | 413,472 | |
Other assets | 1,826 | 597 | 460 | |
Total assets | 867,771 | 659,312 | 693,072 | |
Liabilities and Stockholders' Equity | ||||
Accounts payable and accrued expenses | 13,795 | 4,310 | 16,386 | |
Income taxes currently payable | (72,704) | (56,364) | ||
Deferred tax liabilities, net | (453) | (354) | (677) | |
Long-term debt | 579,624 | 486,361 | 500,642 | |
Total liabilities | 592,966 | 417,613 | 459,987 | |
Commitments and contingencies | ||||
Stockholders' equity | 274,805 | 241,699 | 233,085 | |
Total liabilities and stockholders' equity | 867,771 | 659,312 | 693,072 | |
Guarantor Subsidiaries | ||||
Assets | ||||
Cash and cash equivalents | 50,996 | 36,057 | 43,127 | 40,927 |
Restricted cash | 7,705 | 6,838 | 21,152 | |
Loans and finance receivables, net | 351,627 | 335,160 | 358,142 | |
Income taxes receivable | (95,852) | |||
Other receivables and prepaid expenses | 21,271 | 19,095 | 18,222 | |
Property and equipment, net | 45,925 | 46,507 | 47,050 | |
Goodwill | 267,015 | 267,010 | 267,012 | |
Intangible assets, net | 4,593 | 5,400 | 5,670 | |
Investment in subsidiaries | 45,924 | 25,131 | 22,358 | |
Other assets | 6,960 | 7,995 | 7,979 | |
Total assets | 706,164 | 749,193 | 790,712 | |
Liabilities and Stockholders' Equity | ||||
Accounts payable and accrued expenses | 62,348 | 65,714 | 67,931 | |
Intercompany payables | 252,154 | 295,763 | 357,650 | |
Income taxes currently payable | 73,006 | 61,521 | ||
Deferred tax liabilities, net | 21,634 | 15,156 | 17,394 | |
Total liabilities | 336,136 | 449,639 | 504,496 | |
Commitments and contingencies | ||||
Stockholders' equity | 370,028 | 299,554 | 286,216 | |
Total liabilities and stockholders' equity | 706,164 | 749,193 | 790,712 | |
Non-Guarantor Subsidiaries | ||||
Assets | ||||
Cash and cash equivalents | 5,003 | 3,877 | 2,554 | $ 1,139 |
Restricted cash | 22,161 | 19,468 | 18,120 | |
Loans and finance receivables, net | 286,109 | 226,390 | 184,723 | |
Income taxes receivable | 31 | |||
Other receivables and prepaid expenses | 2,280 | 302 | 286 | |
Property and equipment, net | 632 | 593 | 436 | |
Intangible assets, net | 4 | 5 | ||
Other assets | 2,056 | 2,459 | ||
Total assets | 318,272 | 253,093 | 206,124 | |
Liabilities and Stockholders' Equity | ||||
Accounts payable and accrued expenses | 2,754 | 1,647 | 1,116 | |
Intercompany payables | 91,360 | 68,179 | 55,826 | |
Income taxes currently payable | (20) | (8) | ||
Deferred tax liabilities, net | (500) | (486) | (484) | |
Long-term debt | 185,771 | 163,550 | 134,537 | |
Total liabilities | 279,385 | 232,870 | 190,987 | |
Commitments and contingencies | ||||
Stockholders' equity | 38,887 | 20,223 | 15,137 | |
Total liabilities and stockholders' equity | 318,272 | 253,093 | 206,124 | |
Eliminations | ||||
Assets | ||||
Investment in subsidiaries | (408,915) | (319,777) | (301,357) | |
Intercompany receivable | (343,514) | (363,942) | (413,472) | |
Total assets | (752,429) | (683,719) | (714,829) | |
Liabilities and Stockholders' Equity | ||||
Intercompany payables | (343,514) | (363,942) | (413,476) | |
Total liabilities | (343,514) | (363,942) | (413,476) | |
Commitments and contingencies | ||||
Stockholders' equity | (408,915) | (319,777) | (301,353) | |
Total liabilities and stockholders' equity | $ (752,429) | $ (683,719) | $ (714,829) |
Condensed Consolidating Finan61
Condensed Consolidating Financial Statements - Condensed Consolidating Statements of Income and Comprehensive Income - (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Condensed Financial Statements Captions [Line Items] | |||||
Revenue | $ 217,878 | $ 195,943 | $ 600,045 | $ 543,131 | |
Cost of Revenue | 107,341 | 95,391 | 269,087 | 230,421 | |
Gross Profit | 110,537 | 100,552 | 330,958 | 312,710 | |
Expenses | |||||
Marketing | 27,000 | 26,722 | 69,993 | 73,500 | |
Operations and technology | 27,163 | 20,637 | 72,512 | 61,706 | |
General and administrative | 25,164 | 21,307 | 77,105 | 76,747 | |
Depreciation and amortization | 3,533 | 3,789 | 10,396 | 12,004 | |
Total Expenses | 82,860 | 72,455 | 230,006 | 223,957 | |
Income from Operations | 27,677 | 28,097 | 100,952 | 88,753 | |
Interest (expense) income, net | (18,292) | (16,117) | (52,526) | (48,058) | |
Foreign currency transaction gain | 65 | 145 | 354 | 2,184 | |
Loss on early extinguishment of debt | (14,927) | (14,927) | |||
(Loss) Income before Income Taxes | (5,477) | 12,125 | 33,853 | 42,879 | |
(Benefit from) provision for income taxes | (2,109) | 4,288 | 11,496 | 16,991 | |
(Loss) Income before Equity in Net Earnings of Subsidiaries | (3,368) | 7,837 | 22,357 | 25,888 | |
Net (Loss) Income | (3,368) | 7,837 | 22,357 | 25,888 | |
Other comprehensive gain (loss), net of tax: | |||||
Foreign currency translation gain (loss) | [1] | 2,052 | (1,245) | 4,561 | (5,070) |
Total other comprehensive gain (loss), net of tax | 2,052 | (1,245) | 4,561 | (5,070) | |
Comprehensive (Loss) Income | (1,316) | 6,592 | 26,918 | 20,818 | |
Parent | |||||
Expenses | |||||
General and administrative | 131 | 37 | 265 | 185 | |
Total Expenses | 131 | 37 | 265 | 185 | |
Income from Operations | (131) | (37) | (265) | (185) | |
Interest (expense) income, net | (14,238) | (13,342) | (40,780) | (39,793) | |
Foreign currency transaction gain | 65 | 145 | 349 | 2,184 | |
Loss on early extinguishment of debt | (14,927) | (14,927) | |||
(Loss) Income before Income Taxes | (29,231) | (13,234) | (55,623) | (37,794) | |
(Benefit from) provision for income taxes | (9,760) | (4,832) | (18,889) | (14,977) | |
(Loss) Income before Equity in Net Earnings of Subsidiaries | (19,471) | (8,402) | (36,734) | (22,817) | |
Net earnings of subsidiaries | 16,103 | 16,239 | 59,091 | 48,705 | |
Net (Loss) Income | (3,368) | 7,837 | 22,357 | 25,888 | |
Other comprehensive gain (loss), net of tax: | |||||
Foreign currency translation gain (loss) | 2,052 | (1,245) | 4,561 | (5,070) | |
Total other comprehensive gain (loss), net of tax | 2,052 | (1,245) | 4,561 | (5,070) | |
Comprehensive (Loss) Income | (1,316) | 6,592 | 26,918 | 20,818 | |
Guarantor Subsidiaries | |||||
Condensed Financial Statements Captions [Line Items] | |||||
Revenue | 178,908 | 170,288 | 497,081 | 478,434 | |
Cost of Revenue | 79,349 | 78,283 | 197,281 | 182,729 | |
Gross Profit | 99,559 | 92,005 | 299,800 | 295,705 | |
Expenses | |||||
Marketing | 26,423 | 26,348 | 68,686 | 72,488 | |
Operations and technology | 22,911 | 19,505 | 65,090 | 58,642 | |
General and administrative | 25,746 | 18,539 | 76,060 | 72,867 | |
Depreciation and amortization | 3,486 | 3,761 | 10,261 | 11,936 | |
Total Expenses | 78,566 | 68,153 | 220,097 | 215,933 | |
Income from Operations | 20,993 | 23,852 | 79,703 | 79,772 | |
Interest (expense) income, net | (33) | (123) | (97) | 613 | |
Foreign currency transaction gain | 5 | ||||
(Loss) Income before Income Taxes | 20,960 | 23,729 | 79,611 | 80,385 | |
(Benefit from) provision for income taxes | 6,746 | 8,451 | 27,034 | 31,853 | |
(Loss) Income before Equity in Net Earnings of Subsidiaries | 14,214 | 15,278 | 52,577 | 48,532 | |
Net earnings of subsidiaries | 1,889 | 961 | 6,514 | 173 | |
Net (Loss) Income | 16,103 | 16,239 | 59,091 | 48,705 | |
Other comprehensive gain (loss), net of tax: | |||||
Foreign currency translation gain (loss) | 1,304 | (1,084) | 4,197 | (6,342) | |
Total other comprehensive gain (loss), net of tax | 1,304 | (1,084) | 4,197 | (6,342) | |
Comprehensive (Loss) Income | 17,407 | 15,155 | 63,288 | 42,363 | |
Non-Guarantor Subsidiaries | |||||
Condensed Financial Statements Captions [Line Items] | |||||
Revenue | 40,374 | 24,157 | 106,902 | 64,697 | |
Cost of Revenue | 27,992 | 17,108 | 71,806 | 47,692 | |
Gross Profit | 12,382 | 7,049 | 35,096 | 17,005 | |
Expenses | |||||
Marketing | 577 | 374 | 1,307 | 1,012 | |
Operations and technology | 4,252 | 1,132 | 7,422 | 3,064 | |
General and administrative | 691 | 1,233 | 4,718 | 3,695 | |
Depreciation and amortization | 47 | 28 | 135 | 68 | |
Total Expenses | 5,567 | 2,767 | 13,582 | 7,839 | |
Income from Operations | 6,815 | 4,282 | 21,514 | 9,166 | |
Interest (expense) income, net | (4,021) | (2,652) | (11,649) | (8,878) | |
(Loss) Income before Income Taxes | 2,794 | 1,630 | 9,865 | 288 | |
(Benefit from) provision for income taxes | 905 | 669 | 3,351 | 115 | |
(Loss) Income before Equity in Net Earnings of Subsidiaries | 1,889 | 961 | 6,514 | 173 | |
Net (Loss) Income | 1,889 | 961 | 6,514 | 173 | |
Other comprehensive gain (loss), net of tax: | |||||
Foreign currency translation gain (loss) | 749 | (160) | 365 | 1,270 | |
Total other comprehensive gain (loss), net of tax | 749 | (160) | 365 | 1,270 | |
Comprehensive (Loss) Income | 2,638 | 801 | 6,879 | 1,443 | |
Eliminations | |||||
Condensed Financial Statements Captions [Line Items] | |||||
Revenue | (1,404) | 1,498 | (3,938) | ||
Gross Profit | (1,404) | 1,498 | (3,938) | ||
Expenses | |||||
General and administrative | (1,404) | 1,498 | (3,938) | ||
Total Expenses | (1,404) | 1,498 | (3,938) | ||
Net earnings of subsidiaries | (17,992) | (17,200) | (65,605) | (48,878) | |
Net (Loss) Income | (17,992) | (17,200) | (65,605) | (48,878) | |
Other comprehensive gain (loss), net of tax: | |||||
Foreign currency translation gain (loss) | (2,053) | 1,244 | (4,562) | 5,072 | |
Total other comprehensive gain (loss), net of tax | (2,053) | 1,244 | (4,562) | 5,072 | |
Comprehensive (Loss) Income | $ (20,045) | $ (15,956) | $ (70,167) | $ (43,806) | |
[1] | Net of tax (provision) benefit of $(1,161) and $707 for the three months ended September 30, 2017 and 2016, respectively, and $(2,578) and $2,860 for the nine months ended September 30, 2017 and 2016, respectively. |
Condensed Consolidating Finan62
Condensed Consolidating Financial Statements - Condensed Consolidating Statements of Cash Flows - (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Condensed Cash Flow Statements Captions [Line Items] | ||||
Cash Flows from Operating Activities | $ 311,297 | $ 300,707 | ||
Cash Flows from Investing Activities | ||||
Loans and finance receivables originated or acquired | (998,333) | (987,255) | ||
Loans and finance receivables repaid | 672,474 | 651,865 | ||
Change in restricted cash | (3,030) | (32,776) | ||
Purchases of property and equipment | $ (5,503) | $ (3,817) | (10,804) | (11,466) |
Other investing activities | 1,798 | 72 | ||
Net cash used in investing activities | (337,895) | (379,560) | ||
Cash Flows from Financing Activities | ||||
Debt issuance costs paid | (9,564) | (3,516) | ||
Debt prepayment penalty | (11,335) | |||
Treasury shares purchased | (2,115) | (115) | ||
Issuance of senior notes | 250,000 | |||
Repayments of senior notes | (155,000) | |||
Borrowings under revolving line of credit | 30,000 | 45,000 | ||
Repayments under revolving line of credit | (30,000) | (88,400) | ||
Borrowings under securitization facility | 137,200 | 218,961 | ||
Repayments under securitization facility | (116,085) | (82,008) | ||
Net cash provided by financing activities | 93,101 | 89,922 | ||
Effect of exchange rates on cash | 3,617 | (7,454) | ||
Net increase in cash and cash equivalents | 70,120 | 3,615 | ||
Cash and cash equivalents at beginning of year | 39,934 | 42,066 | ||
Cash and cash equivalents at end of period | 110,054 | 45,681 | 110,054 | 45,681 |
Parent | ||||
Condensed Cash Flow Statements Captions [Line Items] | ||||
Cash Flows from Operating Activities | (17,931) | 87,477 | ||
Cash Flows from Investing Activities | ||||
Capital contributions to subsidiaries | (43,962) | |||
Net cash used in investing activities | (43,962) | |||
Cash Flows from Financing Activities | ||||
Debt issuance costs paid | (9,564) | |||
Debt prepayment penalty | (11,335) | |||
Treasury shares purchased | (2,115) | (115) | ||
Issuance of senior notes | 250,000 | |||
Repayments of senior notes | (155,000) | |||
Borrowings under revolving line of credit | 30,000 | 45,000 | ||
Repayments under revolving line of credit | (30,000) | (88,400) | ||
Net cash provided by financing activities | 71,986 | (43,515) | ||
Net increase in cash and cash equivalents | 54,055 | |||
Cash and cash equivalents at end of period | 54,055 | 54,055 | ||
Guarantor Subsidiaries | ||||
Condensed Cash Flow Statements Captions [Line Items] | ||||
Cash Flows from Operating Activities | 346,948 | 216,799 | ||
Cash Flows from Investing Activities | ||||
Loans and finance receivables originated or acquired | (974,211) | (976,614) | ||
Securitized loans transferred | 201,518 | 278,076 | ||
Loans and finance receivables repaid | 467,011 | 525,636 | ||
Change in restricted cash | (337) | (14,656) | ||
Purchases of property and equipment | (10,651) | (11,262) | ||
Capital contributions to subsidiaries | (11,785) | (8,005) | ||
Other investing activities | 1,798 | 72 | ||
Net cash used in investing activities | (326,657) | (206,753) | ||
Cash Flows from Financing Activities | ||||
(Payments for) proceeds from member's equity | (9,008) | (176) | ||
Net cash provided by financing activities | (9,008) | (176) | ||
Effect of exchange rates on cash | 3,656 | (7,670) | ||
Net increase in cash and cash equivalents | 14,939 | 2,200 | ||
Cash and cash equivalents at beginning of year | 36,057 | 40,927 | ||
Cash and cash equivalents at end of period | 50,996 | 43,127 | 50,996 | 43,127 |
Non-Guarantor Subsidiaries | ||||
Condensed Cash Flow Statements Captions [Line Items] | ||||
Cash Flows from Operating Activities | (8,712) | 40,569 | ||
Cash Flows from Investing Activities | ||||
Loans and finance receivables originated or acquired | (24,122) | (10,641) | ||
Securitized loans transferred | (201,518) | (278,076) | ||
Loans and finance receivables repaid | 205,463 | 126,229 | ||
Change in restricted cash | (2,693) | (18,120) | ||
Purchases of property and equipment | (153) | (204) | ||
Net cash used in investing activities | (23,023) | (180,812) | ||
Cash Flows from Financing Activities | ||||
(Payments for) proceeds from member's equity | 11,785 | 8,005 | ||
Debt issuance costs paid | (3,516) | |||
Borrowings under securitization facility | 137,200 | 218,961 | ||
Repayments under securitization facility | (116,085) | (82,008) | ||
Net cash provided by financing activities | 32,900 | 141,442 | ||
Effect of exchange rates on cash | (39) | 216 | ||
Net increase in cash and cash equivalents | 1,126 | 1,415 | ||
Cash and cash equivalents at beginning of year | 3,877 | 1,139 | ||
Cash and cash equivalents at end of period | $ 5,003 | $ 2,554 | 5,003 | 2,554 |
Eliminations | ||||
Condensed Cash Flow Statements Captions [Line Items] | ||||
Cash Flows from Operating Activities | (9,008) | (44,138) | ||
Cash Flows from Investing Activities | ||||
Capital contributions to subsidiaries | 11,785 | 51,967 | ||
Net cash used in investing activities | 11,785 | 51,967 | ||
Cash Flows from Financing Activities | ||||
(Payments for) proceeds from member's equity | (2,777) | (7,829) | ||
Net cash provided by financing activities | $ (2,777) | $ (7,829) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | Oct. 20, 2017 | Jan. 15, 2016 |
Subsequent Event [Line Items] | ||
Aggregate availability of variable funding notes | $ 20,000,000 | |
Maximum principal amount of securitization notes outstanding | $ 175,000,000 | |
Subsequent Event | 2017 Securitization Notes | ||
Subsequent Event [Line Items] | ||
Outstanding principal amount | $ 226,400,000 | |
Maximum principal amount of securitization notes outstanding | $ 275,000,000 | |
Debt instrument, basis spread on variable rate | 7.50% | |
Maximum one-time prepayment amount | $ 100,000,000 | |
Subsequent Event | 2017 Securitization Notes | Initial Term Note | ||
Subsequent Event [Line Items] | ||
Debt instrument, face amount | 181,100,000 | |
Subsequent Event | 2017 Securitization Notes | Minimum [Member] | ||
Subsequent Event [Line Items] | ||
Aggregate availability of variable funding notes | 75,000,000 | |
Subsequent Event | 2017 Securitization Notes | Maximum | ||
Subsequent Event [Line Items] | ||
Aggregate availability of variable funding notes | $ 90,000,000 |