Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 29, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Enova International, Inc. | |
Entity Central Index Key | 0001529864 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Title of 12(b) Security | Common Stock, $.00001 par value per share | |
Trading Symbol | ENVA | |
Name of Exchange of which registered | NYSE | |
Entity Common Stock, Shares Outstanding | 36,751,592 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity File Number | 1-35503 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 45-3190813 | |
Entity Address, Address Line One | 175 West Jackson Blvd. | |
Entity Address, City or Town | Chicago | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60604 | |
City Area Code | 312 | |
Local Phone Number | 568-4200 | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | |
Assets | ||||
Cash and cash equivalents | [1] | $ 324,328 | $ 297,273 | $ 161,076 |
Restricted cash | [1] | 49,879 | 71,927 | 42,742 |
Loans and finance receivables at fair value | [1] | 1,230,711 | 1,241,506 | 1,093,207 |
Income taxes receivable | 35,487 | |||
Other receivables and prepaid expenses | [1] | 41,630 | 40,301 | 33,530 |
Property and equipment, net | 78,899 | 79,417 | 56,216 | |
Operating lease right-of-use assets | 39,159 | 40,123 | 19,981 | |
Goodwill | 279,275 | 267,974 | 267,868 | |
Intangible assets, net | 41,155 | 26,008 | 1,918 | |
Other assets | [1] | 48,606 | 43,546 | 21,276 |
Total assets | 2,133,642 | 2,108,075 | 1,733,301 | |
Liabilities and Stockholders’ Equity | ||||
Accounts payable and accrued expenses | [1] | 108,982 | 124,071 | 95,893 |
Operating lease liabilities | 66,090 | 67,956 | 35,783 | |
Income taxes currently payable | 17,378 | 2,624 | ||
Deferred tax liabilities, net | 61,070 | 48,129 | 71,679 | |
Affiliate note payable | 3,000 | |||
Long-term debt | [1] | 874,514 | 946,461 | 1,091,732 |
Total liabilities | 1,128,034 | 1,189,241 | 1,295,087 | |
Commitments and contingencies (Note 8) | ||||
Stockholders’ equity: | ||||
Common stock, $0.00001 par value, 250,000,000 shares authorized, 42,862,788, 36,112,268 and 41,936,784 shares issued and 36,598,693, 31,007,899 and 35,762,926 outstanding as of March 31, 2021 and 2020 and December 31, 2020, respectively | 0 | 0 | 0 | |
Preferred stock, $0.00001 par value, 25,000,000 shares authorized, no shares issued and outstanding | ||||
Additional paid in capital | 203,765 | 187,981 | 67,440 | |
Retained earnings | 925,386 | 849,466 | 477,082 | |
Accumulated other comprehensive loss | (8,498) | (6,898) | (7,807) | |
Treasury stock, at cost (6,264,095, 5,104,369 and 6,173,858 shares as of March 31, 2021 and 2020 and December 31, 2020, respectively) | (115,787) | (113,201) | (98,501) | |
Total Enova International, Inc. stockholders’ equity | 1,004,866 | 917,348 | 438,214 | |
Noncontrolling interest | 742 | 1,486 | ||
Total stockholders’ equity | 1,005,608 | 918,834 | 438,214 | |
Total liabilities and stockholders’ equity | $ 2,133,642 | $ 2,108,075 | $ 1,733,301 | |
[1] | Includes amounts in wholly owned, bankruptcy-remote special purpose subsidiaries (“VIEs”) presented separately in the table below. |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Statement Of Financial Position [Abstract] | |||
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 | 42,862,788 | 41,936,784 | 36,112,268 |
Common stock, shares outstanding | 36,598,693 | 35,762,926 | 31,007,899 |
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 | 6,264,095 | 6,173,858 | 5,104,369 |
CONSOLIDATED BALANCE SHEETS (Co
CONSOLIDATED BALANCE SHEETS (Consolidated VIEs) (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | |
Assets of consolidated VIEs, included in total assets above | ||||
Cash and cash equivalents | [1] | $ 324,328 | $ 297,273 | $ 161,076 |
Restricted cash | [1] | 49,879 | 71,927 | 42,742 |
Loans and finance receivables at fair value | [1] | 1,230,711 | 1,241,506 | 1,093,207 |
Other receivables and prepaid expenses | [1] | 41,630 | 40,301 | 33,530 |
Other assets | [1] | 48,606 | 43,546 | 21,276 |
Total assets | 2,133,642 | 2,108,075 | 1,733,301 | |
Liabilities of consolidated VIEs, included in total liabilities above | ||||
Accounts payable and accrued expenses | [1] | 108,982 | 124,071 | 95,893 |
Affiliate note payable | 3,000 | |||
Long-term debt | [1] | 874,514 | 946,461 | 1,091,732 |
Total liabilities | 1,128,034 | 1,189,241 | 1,295,087 | |
Variable Interest Entity, Primary Beneficiary | ||||
Assets of consolidated VIEs, included in total assets above | ||||
Cash and cash equivalents | 1,484 | 420 | 525 | |
Restricted cash | 40,254 | 64,811 | 37,802 | |
Loans and finance receivables at fair value | 348,402 | 528,877 | 508,276 | |
Other receivables and prepaid expenses | 5,458 | 4,827 | 4,744 | |
Other assets | 1,062 | 1,639 | 2,333 | |
Total assets | 396,660 | 600,574 | 553,680 | |
Liabilities of consolidated VIEs, included in total liabilities above | ||||
Accounts payable and accrued expenses | 2,448 | 3,056 | 2,790 | |
Affiliate note payable | 3,708 | 4,065 | ||
Long-term debt | 154,608 | 329,855 | 371,393 | |
Total liabilities | $ 160,764 | $ 336,976 | $ 374,183 | |
[1] | Includes amounts in wholly owned, bankruptcy-remote special purpose subsidiaries (“VIEs”) presented separately in the table below. |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Revenue | $ 259,444 | $ 362,252 |
Change in Fair Value | (21,078) | (235,719) |
Net Revenue | 238,366 | 126,533 |
Expenses | ||
Marketing | 28,568 | 34,558 |
Operations and technology | 35,627 | 31,266 |
General and administrative | 44,089 | 27,951 |
Depreciation and amortization | 6,627 | 3,670 |
Total Expenses | 114,911 | 97,445 |
Income from Operations | 123,455 | 29,088 |
Interest expense, net | (19,914) | (20,381) |
Foreign currency transaction (loss) gain | (34) | 41 |
Loss on early extinguishment of debt | (378) | |
Equity method investment income | 558 | |
Income before Income Taxes | 103,687 | 8,748 |
Provision for income taxes | 27,716 | 3,000 |
Net income from continuing operations before noncontrolling interest | 75,971 | 5,748 |
Less: Net income attributable to noncontrolling interest | 51 | |
Net income from continuing operations | 75,920 | 5,748 |
Net loss from discontinued operations | (288) | |
Net income attributable to Enova International, Inc. | $ 75,920 | $ 5,460 |
Earnings (loss) per common share – basic: | ||
Continuing operations | $ 2.10 | $ 0.18 |
Discontinued operations | (0.01) | |
Earnings (loss) per common share – basic | 2.10 | 0.17 |
Earnings (loss) per common share – diluted: | ||
Continuing operations | 2.03 | 0.18 |
Discontinued operations | (0.01) | |
Earnings (loss) per common share – diluted | $ 2.03 | $ 0.17 |
Weighted average common shares outstanding: | ||
Basic | 36,109 | 32,337 |
Diluted | 37,487 | 32,833 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income including noncontrolling interest | $ 75,971 | $ 5,460 | |
Other comprehensive loss, net of tax: | |||
Foreign currency translation loss | [1] | (1,330) | (4,741) |
Ownership change in noncontrolling interest | (270) | ||
Total other comprehensive loss, net of tax | (1,600) | (4,741) | |
Comprehensive Income | 74,371 | 719 | |
Net income attributable to noncontrolling interest | (51) | ||
Foreign currency translation loss attributable to noncontrolling interests | (7) | ||
Ownership change in noncontrolling interest | 802 | ||
Comprehensive income attributable to the noncontrolling interest | 744 | ||
Comprehensive income attributable to Enova International, Inc. | $ 75,115 | $ 719 | |
[1] | Net of tax benefit of $525 and $1,461 for the three months ended March 31, 2021 and 2020, respectively. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Tax benefit (provision) of foreign currency translation (loss) gain | $ 525 | $ 1,461 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid in Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Treasury Stock | Total Enova International, Inc. Stockholders'Equity | Total Enova International, Inc. Stockholders'EquityCumulative Effect, Period of Adoption, Adjustment | Noncontrolling Interest |
Balance at Dec. 31, 2019 | $ 376,613 | $ 98,941 | $ 63,791 | $ 372,681 | $ 98,941 | $ (3,066) | $ (56,793) | $ 376,613 | $ 98,941 | ||
Balance, in shares at Dec. 31, 2019 | 35,765,000 | (2,790,000) | |||||||||
Stock-based compensation expense | 3,460 | 3,460 | 3,460 | ||||||||
Shares issued for vested RSUs, in shares | 331,000 | ||||||||||
Shares issued for stock option exercises | 189 | 189 | 189 | ||||||||
Shares issued for stock option exercises, in shares | 16,000 | ||||||||||
Net income attributable to Enova International, Inc. | 5,460 | 5,460 | 5,460 | ||||||||
Foreign currency translation (loss) gain, net of tax | (4,741) | (4,741) | (4,741) | ||||||||
Purchases of treasury shares, at cost | (41,708) | $ (41,708) | (41,708) | ||||||||
Purchases of treasury shares, at cost, in shares | (2,314,000) | ||||||||||
Balance at Mar. 31, 2020 | $ 438,214 | 67,440 | 477,082 | (7,807) | $ (98,501) | 438,214 | |||||
Balance, in shares at Mar. 31, 2020 | 36,112,268 | 36,112,000 | (5,104,000) | ||||||||
Balance at Dec. 31, 2020 | $ 918,834 | 187,981 | 849,466 | (6,898) | $ (113,201) | 917,348 | $ 1,486 | ||||
Balance, in shares at Dec. 31, 2020 | 41,936,784 | 41,937,000 | (6,174,000) | ||||||||
Stock-based compensation expense | $ 5,804 | 5,804 | 5,804 | ||||||||
Shares issued for vested RSUs, in shares | 534,000 | ||||||||||
Shares issued for stock option exercises | 8,908 | 8,908 | 8,908 | ||||||||
Shares issued for stock option exercises, in shares | 392,000 | ||||||||||
Net income attributable to Enova International, Inc. | 75,920 | 75,920 | 75,920 | ||||||||
Foreign currency translation (loss) gain, net of tax | (1,323) | (1,330) | (1,330) | 7 | |||||||
Purchases of treasury shares, at cost | (2,586) | $ (2,586) | (2,586) | ||||||||
Purchases of treasury shares, at cost, in shares | (90,000) | ||||||||||
Ownership change in noncontrolling interest | 1,072 | (270) | 802 | (802) | |||||||
Net income attributable to noncontrolling interest | 51 | 51 | |||||||||
Balance at Mar. 31, 2021 | $ 1,005,608 | $ 203,765 | $ 925,386 | $ (8,498) | $ (115,787) | $ 1,004,866 | $ 742 | ||||
Balance, in shares at Mar. 31, 2021 | 42,862,788 | 42,863,000 | (6,264,000) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash Flows from Operating Activities | ||
Net income before noncontrolling interest | $ 75,971 | $ 5,460 |
Add: net loss from discontinued operations | 288 | |
Net income from continuing operations | 75,971 | 5,748 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 6,627 | 3,670 |
Amortization of deferred loan costs and debt discount | 1,914 | 1,643 |
Change in fair value | 21,078 | 235,719 |
Stock-based compensation expense | 5,804 | 3,460 |
Loss on early extinguishment of debt | 378 | |
Operating leases, net | (900) | (340) |
Deferred income taxes, net | 13,442 | (3,212) |
Changes in operating assets and liabilities: | ||
Finance and service charges on loans and finance receivables | (255) | 31,686 |
Other receivables and prepaid expenses and other assets | 550 | (2,865) |
Accounts payable and accrued expenses | (21,929) | (28,814) |
Current income taxes | 14,348 | 6,107 |
Cash flows from operating activities - continuing operations | 117,028 | 252,802 |
Cash flows from operating activities - discontinued operations | (288) | |
Net cash provided by operating activities | 117,028 | 252,514 |
Cash Flows from Investing Activities | ||
Loans and finance receivables originated or acquired | (444,947) | (397,460) |
Loans and finance receivables repaid | 435,932 | 219,275 |
Acquisitions, net of cash acquired | (28,358) | (3,597) |
Purchases of property and equipment | (7,106) | (5,156) |
Other investing activities | 25 | 57 |
Cash flows from investing activities - continuing operations | (44,454) | (186,881) |
Net cash used in investing activities | (44,454) | (186,881) |
Cash Flows from Financing Activities | ||
Borrowings under revolving line of credit | 102,000 | 100,250 |
Repayments under revolving line of credit | (67,000) | |
Borrowings under securitization facilities | 5,161 | 119,200 |
Repayments under securitization facilities | (181,139) | (53,224) |
Debt issuance costs paid | (372) | |
Proceeds from exercise of stock options | 8,908 | 189 |
Treasury shares purchased | (2,586) | (41,708) |
Net cash (used in) provided by financing activities | (67,656) | 57,335 |
Effect of exchange rates on cash, cash equivalents and restricted cash | 89 | (114) |
Net increase in cash, cash equivalents and restricted cash | 5,007 | 122,854 |
Cash, cash equivalents and restricted cash at beginning of year | 369,200 | 80,964 |
Cash, cash equivalents and restricted cash at end of period | 374,207 | 203,818 |
Supplemental Disclosures | ||
Loans and finance receivables renewed | $ 45,111 | $ 22,281 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 1. Significant Accounting Policies Nature of the Company 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 installment loans and line of credit accounts. RPAs represent a right to receive future receivables from a small business. The Company also provides services related to third-party lenders’ consumer loan products by acting as a credit services organization or credit access business on behalf of consumers in accordance with applicable state laws (“CSO program”). Basis of Presentation The consolidated financial statements of the Company reflect the historical results of operations and cash flows of the Company during each respective period. The consolidated financial statements include goodwill and intangible assets arising from businesses previously acquired. The financial information included herein may not be indicative of the consolidated financial position, operating results, changes in stockholders’ equity and cash flows of the Company in the future. Intercompany transactions are eliminated. 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. On July 28, 2020, the Company and OnDeck Capital Inc. (“OnDeck”) entered into an Agreement and Plan of Merger (the “Merger Agreement”) among the Company, OnDeck and Energy Merger Sub, Inc., a wholly owned subsidiary of the Company (“Merger Sub”), pursuant to which, subject to the satisfaction or waiver of the conditions set forth therein, Merger Sub would merge with and into OnDeck, with OnDeck surviving as an indirect wholly owned subsidiary of the Company. On October 13, 2020, the Company and OnDeck completed the transaction following the approval of OnDeck’s stockholders and the satisfaction of all other closing conditions. The accompanying unaudited consolidated results of operations for the three months ended 2021 With the acquisition of OnDeck, the Company owns a controlling interest in On Deck Capital Australia PTY LTD (“OnDeck Australia”). The remaining interests are owned by an unrelated third party. We consolidate the financial position and results of operations of this entity under the voting interest model. The noncontrolling interest, which is presented as a separate component of consolidated equity, represents the minority owners’ proportionate share of the equity of the entity and is adjusted for the minority owners’ share of the earnings, losses, investments and distributions. The consolidated financial statements presented as of March 31, 2021 and 2020 and for the three-month periods ended March 31, 2021 and 2020 are unaudited but, in management’s opinion, include all adjustments necessary for a fair presentation of the results for such interim periods. Operating results for the three-month period are not necessarily indicative of the results that may be expected for the full fiscal year. Certain prior period amounts have been reclassified to conform to the current year presentation. With the acquisition of OnDeck, small business loans comprise a significantly larger portion of the Company’s overall loan portfolio. Where presented on a disaggregated basis, loans and finance receivables that were previously grouped as line of credit accounts and installment loans and RPAs, are now grouped at the consumer and small business levels as management has deemed these groupings to be more meaningful to users of the financial statements. These consolidated financial statements and related notes should be read in conjunction with the Company’s audited consolidated financial statements as of December 31, 2020 and 2019 and for the years ended December 31, 2020, 2019 and 2018 and related notes, which are included on Form 10-K filed with the SEC on February 26, 2021. Discontinued Operations Beginning in 2007, the Company provided services in the United Kingdom under various brands, including QuickQuid, Pounds to Pocket and On Stride. Due in part to the level of claim and legal settlement costs incurred in conducting our U.K. business and unsuccessful discussions with U.K regulators, on October 24, 2019, the Company announced its intent to exit the U.K. market. On October 25, 2019, Grant Thornton LLP, a licensed U.K. insolvency practitioner, was appointed as administrators (“Administrators”) to take control of management of the U.K. businesses. The effect of the U.K. businesses’ entry into administration was to place their management, affairs, business and property under the direct control of the Administrators. During the 2020 the Company recorded an impairment charge of $0.4 million ($0.3 million net of taxes) to write down a receivable on certain expenses incurred by the Company prior to administration that were deemed non-reimbursable by the Administrators. The Company entered into a service agreement with the Administrators under which the Company provides certain administrative, technical and other services in exchange for compensation by the Administrators. The agreement is scheduled to expire July 8, 2021 but with options to extend the term for three-month Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the consolidated balance sheets (in thousands): March 31, 2021 2020 Cash and cash equivalents $ 324,328 $ 161,076 Restricted cash 49,879 42,742 Total cash, cash equivalents and restricted cash $ 374,207 $ 203,818 Loans and Finance Receivables The Company utilizes the fair value option on its entire loan and finance receivable portfolio. As such, loans and finance receivables are carried at fair value in the consolidated balance sheet with changes in fair value recorded in the consolidated income statement. To derive the fair value, the Company generally utilizes discounted cash flow analyses that factor in estimated losses, prepayments, utilization rates and servicing costs over the estimated duration of the underlying assets. Loss, prepayment, utilization and servicing cost assumptions are determined using historical loss data and include appropriate consideration of recent trends and anticipated future performance. Future cash flows are discounted using a rate of return that the Company believes a market participant would require. Accrued and unpaid interest and fees are included in “Loans and finance receivables” in the consolidated balance sheets. Current and Delinquent Loans and Finance Receivables The Company classifies its loans and finance receivables as either current or delinquent. Excluding OnDeck loans and finance receivables, when a customer does not make a scheduled payment as of the due date, that payment is considered delinquent, and the remainder of the receivable balance is considered current. If the customer does not make two consecutive payments, the entire account or loan is classified as delinquent and placed on a non-accrual status. For the OnDeck portfolio, a loan is considered to be delinquent when the scheduled payments are one day past due. Loans are placed in nonaccrual status and the accrual of interest income is stopped on loans that are delinquent and non-paying. Loans are returned to accrual status if they are brought to non-delinquent status or have performed in accordance with the contractual terms for a reasonable period of time and, in the Company’s judgment, will continue to make periodic principal and interest payments as scheduled. The Company allows for normal payment processing time before considering a loan delinquent but does not provide for any additional grace period. Where permitted by law and as long as a loan is not considered delinquent, a customer may choose to renew or extend the due date on certain installment loans. In order to renew or extend a single-pay loan, a customer must agree to pay the current finance charge for the right to make a later payment of the outstanding principal balance plus an additional finance charge. In order to renew an installment loan, the customer enters into a new installment loan contract and agrees to pay the principal balance and finance charge in accordance with the terms of the new loan contract. If a single-pay loan is renewed, but the customer fails to pay that loan’s current finance charge as of the due date, the unpaid finance charge is classified as delinquent. In response to the COVID-19 pandemic, the Company enhanced the forbearance options on its loan products, offering additional relief to impacted customers with features such as payment deferrals without the incurrence of additional finance charges or late fees. If a loan is deemed to be current and the customer makes a deferral or payment modification, the loan is still deemed to be current until the next scheduled payment is missed. The Company generally charges off loans and finance receivables between 60 and 65 days delinquent. If a loan or finance receivable is deemed uncollectible prior to this, it is charged off at that point. For the OnDeck portfolio, the Company generally charges off a loan when it is probable that that it will be unable to collect all of the remaining principal payments, which is generally after 90 days of delinquency and 30 days of non-activity. 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 that were previously charged off are generally recognized when collected or sold. 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 CSO programs (“CSO fees”), revenue on RPAs, service charges, draw fees, minimum billing fees, purchase fees, origination fees, late fees and non-sufficient funds fees as permitted by applicable laws and pursuant to the agreement with the customer. Interest is generally recognized on an effective yield basis over the contractual term of the loan on installment loans, the estimated outstanding period of the draw on line of credit accounts, or the projected delivery term on RPAs. CSO fees are recognized over the term of the loan. Late and nonsufficient funds fees are recognized when assessed to the customer. Marketing Expenses Marketing expenses consist of digital costs, lead purchase costs and offline marketing costs such as television and direct mail advertising. All marketing expenses are expensed as incurred. Equity Method Investments With the acquisition of OnDeck, as discussed in Note 2, the Company records its interest in On Deck Capital Canada Holdings, Inc. (“OnDeck Canada”) On February 24, 2021 the Company contributed the platform-as-service business assumed in the OnDeck acquisition to Linear Financial Technologies Holding LLC (“Linear”) in exchange for ownership units in that entity. The Company records its interest in Linear under the equity method of accounting. As of March 31, 2021, the carrying value of the Company’s investment in Linear was $6.8 million, which the Company has included in “Other assets” on the consolidated balance sheets. Equity method income has been included in “Equity method investment income” in the consolidated income statements. Variable Interest Entities As part of the Company’s overall funding strategy and as part of its efforts to support its liquidity from varying sources, the Company has established a securitization program through several securitization facilities. The Company transfers certain loan receivables to VIEs, which issue notes backed by the underlying loan receivables and are serviced by another wholly-owned subsidiary of the Company. The cash flows from the loans held by the VIEs are used to repay obligations under the notes. 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. Adopted In November 2019, the Financial Accounting Standards Board (“FASB”) Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | 2. Acquisitions On July 28, 2020, the Company and OnDeck entered into an Agreement and Plan of Merger among the Company, OnDeck and Energy Merger Sub, Inc., a wholly owned subsidiary of the Company, pursuant to which, subject to the satisfaction or waiver of the conditions set forth therein, Energy Merger Sub, Inc. would merge with and into OnDeck, with OnDeck surviving as an indirect wholly owned subsidiary of the Company. On October 13, 2020, the Company and OnDeck completed the transaction following the approval of OnDeck’s stockholders and the satisfaction of all other closing conditions. The acquisition increases the scale and portfolio diversification of the Company. OnDeck offers a range of term loans and lines of credit customized for the needs of small business owners. Under the terms of the transaction, each holder of OnDeck common stock received $0.12 per share in cash and a fixed exchange ratio of 0.092 shares of the Company’s common stock for each OnDeck share they owned as of the acquisition date. As a result, the Company issued 5.6 million shares of common stock to OnDeck stockholders. Based on the closing share price of the Company as of October 12, 2020 of $18.74, the value of Company common stock and cash provided in exchange for OnDeck common stock was $111.5 million. In addition to the exchange of common stock, the consideration transferred also included the cancellation or replacement of certain equity awards of OnDeck employees in effect prior to the transaction valued at approximately $4.2 million. For additional information, see “Note 2. Acquisitions” of the Annual Report on Form 10-K for the year ended December 31, 2020. On March 19, 2021, the Company completed the purchase of Pangea Universal Holdings, Inc. (“PUH”), a Chicago-based payments platform offering mobile international money transfer services. In accordance with the terms of the transaction, PUH was merged into Pangea Transfer Company, LLC (“Pangea”) with the separate corporate existence of PUH thereupon ceasing and Pangea continuing as the surviving, wholly-owned subsidiary of the Company. Pangea serves the international money transfer market with a focus on Latin America and Asia. Customers have the option to transfer funds directly into bank accounts or have cash picked up from partners in minutes. The total consideration of $32.9 million consists of $30.0 million in cash and $2.9 million in loan forgiveness. The preliminary allocation of the purchase consideration includes $19.8 million and $11.3 million of intangible assets and goodwill, respectively, with all other assets acquired and liabilities assumed being nominal. The Company has not yet completed the process of estimating the fair value of assets acquired and liabilities assumed, including, but not limited to, intangible assets, certain tax-related balances and certain other assets and liabilities. The purchase price allocation is subject to change as the Company finalizes the analysis of the fair value as of the acquisition date. The final determination of the fair value of assets acquired and liabilities assumed will be completed within the twelve-month measurement period from the acquisition date as required by applicable accounting guidance. The operating results of Pangea are included in, but not material to, the Company’s consolidated financial statements from the date of acquisition. |
Loans and Finance Receivables
Loans and Finance Receivables | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Loans and Finance Receivables | 3 . Loans and Finance Receivables Revenue generated from the Company’s loans and finance receivables for the three months ended March 31, 2021 and 2020 was as follows (dollars in thousands): Three Months Ended March 31, 2021 2020 Consumer loans and finance receivables revenue $ 181,737 $ 335,900 Small business loans and finance receivables revenue 75,560 23,906 Total loans and finance receivables revenue 257,297 359,806 Other 2,147 2,446 Total revenue $ 259,444 $ 362,252 Loans and Finance Receivables at Fair Value The components of Company-owned loans and finance receivables at March 31, 2021 and 2020 and December 31, 2020 were as follows (dollars in thousands): As of March 31, 2021 Small Consumer Business Total Principal balance - accrual $ 493,553 $ 668,955 $ 1,162,508 Principal balance - non-accrual 29,617 27,723 57,340 Total principal balance 523,170 696,678 1,219,848 Loans and finance receivables at fair value - accrual 577,999 636,953 1,214,952 Loans and finance receivables at fair value - non-accrual 3,399 12,360 15,759 Loans and finance receivables at fair value 581,398 649,313 1,230,711 Difference between principal balance and fair value $ 58,228 $ (47,365 ) $ 10,863 As of March 31, 2020 Small Consumer Business Total Principal balance - accrual $ 801,084 $ 179,576 $ 980,660 Principal balance - non-accrual 76,419 4,329 80,748 Total principal balance 877,503 183,905 1,061,408 Loans and finance receivables at fair value - accrual 899,808 175,096 1,074,904 Loans and finance receivables at fair value - non-accrual 17,414 889 18,303 Loans and finance receivables at fair value $ 917,222 $ 175,985 $ 1,093,207 Difference between principal balance and fair value $ 39,719 $ (7,920 ) $ 31,799 As of December 31, 2020 Small Consumer Business Total Principal balance - accrual $ 547,015 $ 634,476 $ 1,181,491 Principal balance - non-accrual 29,389 52,254 81,643 Total principal balance 576,404 686,730 1,263,134 Loans and finance receivables at fair value - accrual 621,257 592,654 1,213,911 Loans and finance receivables at fair value - non-accrual 3,962 23,633 27,595 Loans and finance receivables at fair value $ 625,219 $ 616,287 $ 1,241,506 Difference between principal balance and fair value $ 48,815 $ (70,443 ) $ (21,628 ) As of March 31, 2021 and December 31, 2020, the aggregate fair value of loans and finance receivables that were 90 days or more past due was $7.2 million and $14.3 million, respectively, of which, $7.0 million and $14.1 million, respectively, was in non-accrual status. The aggregate unpaid principal balance for loans and finance receivables that were 90 days or more past due was $13.7 million and $33.9 million, respectively. There were no loans and finance receivables that were 90 days or more past due as of March 31, 2020. Changes in the fair value of Company-owned loans and finance receivables during the three months ended March 31, 2021 were as follows (dollars in thousands): Three Months Ended March 31, 2021 Small Consumer Business Total Balance at beginning of period $ 625,219 $ 616,287 $ 1,241,506 Originations or acquisitions 167,947 322,111 490,058 Interest and fees (1) 181,737 75,560 257,297 Repayments (367,075 ) (369,212 ) (736,287 ) Charge-offs, net (2) (36,408 ) (18,042 ) (54,450 ) Net change in fair value (2) 10,335 23,037 33,372 Effect of foreign currency translation (357 ) (428 ) (785 ) Balance at end of period $ 581,398 $ 649,313 $ 1,230,711 Three Months Ended March 31, 2020 Small Consumer Business Total Balance at beginning of period $ 1,015,798 $ 171,785 $ 1,187,583 Originations or acquisitions 343,306 76,435 419,741 Interest and fees (1) 335,900 23,906 359,806 Repayments (563,835 ) (71,147 ) (634,982 ) Charge-offs, net (2) (191,306 ) (11,918 ) (203,224 ) Net change in fair value (2) (19,419 ) (13,076 ) (32,495 ) Effect of foreign currency translation (3,222 ) — (3,222 ) Balance at end of period $ 917,222 $ 175,985 $ 1,093,207 (1) Included in “Revenue” in the consolidated statements of income. (2) Included in “Change in Fair Value” in the consolidated statements of income. Guarantees of Consumer Loans In connection with its CSO programs, the Company guarantees consumer loan payment obligations to unrelated third-party lenders for consumer 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 March 31, 2021 and 2020 and December 31, 2020 the consumer loans guaranteed by the Company had an estimated fair value of $7.2 million, $12.4 million and $10.3 million, respectively and an outstanding principal balance of $5.7 million, $10.3 million and $8.8 million, respectively. As of March 31, 2021 and 2020 and December 31, 2020, the amount of consumer loans, including principal, fees and interest, guaranteed by the Company were $6.8 million, $11.8 million and $10.2 million, respectively. These loans are not included in the consolidated balance sheets as the Company does not own the loans prior to default. |
Long-term Debt
Long-term Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Debt | 4 . Long-term debt The Company’s long-term debt instruments and balances outstanding as of March 31, 2021 and 2020 and December 31, 2020 were as follows (dollars in thousands): Weighted Outstanding average Borrowing March 31, December 31, Maturity date interest rate (8) capacity 2021 2020 2020 Funding Debt: 2018-1 Securitization Facility July 2023 (1 ) 5.00% $ 150,000 $ 32,774 $ 52,000 $ 39,901 2018-2 Securitization Facility October 2022 (2 ) 3.87% 26,850 26,850 110,000 49,519 2019-1 Securitization Facility February 2022 (3 ) — — — 50,000 30,000 2018-A Notes May 2026 7.37% 13,138 13,138 34,078 18,140 2019-A Notes June 2026 6.61% 55,252 55,252 127,798 68,782 OnDeck Account Receivables Trust 2013-1 May 2021 (4 ) — — — — 29,728 Receivable Assets of OnDeck December 2023 (5 ) 2.62% 100,000 — — 22,915 OnDeck Asset Funding II August 2022 (6 ) 3.12% 175,000 2,605 — 52,773 Other funding debt (9) Various (7 ) 4.54% 61,218 24,682 — 19,885 Total funding debt 5.50% $ 581,458 $ 155,301 $ 373,876 $ 331,643 Corporate Debt: 8.50% Senior Notes Due 2024 September 2024 8.50% $ 250,000 $ 250,000 $ 250,000 $ 250,000 8.50% Senior Notes Due 2025 September 2025 8.50% 375,000 375,000 375,000 375,000 Revolving line of credit June 2022 4.25% 125,000 (10 ) 102,000 105,250 — Other corporate debt April 2022 1.00% 795 795 — — Total corporate debt 7.90% $ 750,795 $ 727,795 $ 730,250 $ 625,000 Less: Long-term debt issuance costs $ (8,316 ) $ (12,382 ) $ (9,171 ) Less: Debt discounts (266 ) (12 ) (1,011 ) Total long-term debt $ 874,514 $ 1,091,732 $ 946,461 ( 1 ) The period during which new borrowings may be made under this facility expires in July 2021. ( 2 ) The period during which new borrowings may be made under this facility expired in October 2020. ( 3 ) The period during which new borrowings may be made under this facility expired in February 2021. This facility was repaid and terminated on February 25, 2021. ( 4 ) The period during which new borrowings may be made under this facility expired in October 2020. This facility was repaid and terminated on February 19, 2021. ( 5 ) The period during which new borrowings may be made under this facility expires in December 2022. ( 6 ) The period during which new borrowings may be made under this facility expires in August 2021. ( 7 ) The periods during which new borrowings may be made under the various agreements expire between June 2021 and March 2024. Maturity dates range from December 2021 through March 2024. ( 8 ) The weighted average interest rate is determined based on the rates and principal balances on March 31, 2021. It does not include the impact of the amortization of deferred loan origination costs or debt discounts associated with OnDeck purchase accounting. ( 9 ) These debt facilities support our operations in Australia and are denominated in Australian dollars. The total local currency borrowing capacity is AU$80.6 million, of which there is AU$32.5 million in principal outstanding at March 31, 2021. ( 1 0 ) We had an outstanding letter of credit under the Revolving line of credit of $0.5 million, $1.0 million and $1.0 million as of March 31, 2021 and 2020 and December 31, 2020, respectively. Weighted average interest rates on long-term debt were 8.61% and 8.15% during the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021 and 2020 and December 31, 2020, the Company was in compliance with all covenants and other requirements set forth in the prevailing long-term debt agreements. Recent Amendments to Debt Facilities On March 31, 2021, OnDeck Asset Funding II, LLC (“ODAF II”), a wholly-owned subsidiary of the Company, amended (the “ODAF II Amendment”) its asset-backed revolving debt facility (the “ODAF II Facility”) to modify the Credit Agreement, dated as of August 8, 2018, by and among ODAF II, as Borrower, the Lenders party thereto from time to time, Ares Agent Services, L.P., as Administrative Agent and Collateral Agent, and Wells Fargo Bank, N.A, as Paying Agent. The ODAF II Amendment extends the period during which an Enova Merger Change of Control (as defined in the ODAF II Facility) will not trigger any amortization event under the ODAF II Facility through June 30, 2021, and makes certain technical, definitional, conforming and other changes. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 5 . Income Taxes The Company’s effective tax rate for the three months ended March 31, 2021 was 26.7%, compared to 34.3% for the three months ended March 31, 2020. The decrease is primarily attributable to the significant increase in book operating income as compared to the prior year quarter and a lesser rate impact attributable to nondeductible executive and stock compensation and other nondeductible expenses. As of March 31, 2021, the balance of unrecognized tax benefits was $ 38.6 which is included in “Accounts payable and accrued expenses” on the consolidated balance sheet The Company had $53.5 million and $39.0 million of unrecognized tax benefits as of The Company’s U.S. tax returns are subject to examination by federal and state taxing authorities. The statute of limitations related to the Company’s consolidated Federal income tax returns is closed for all tax years up to and including 2016. However, the 2014 tax year is still open to the extent of the net operating loss that was carried back from the 2019 tax return. The years open to examination by state, local and foreign government authorities vary by jurisdiction, but the statute of limitation is generally three years from the date the tax return is filed. For jurisdictions that have generated net operating losses, carryovers may be subject to the statute of limitations applicable for the year those carryovers are utilized. In these cases, the period for which the losses may be adjusted will extend to conform with the statute of limitations for the year in which the losses are utilized. In most circumstances, this is expected to increase the length of time that the applicable taxing authority may examine the carryovers by one year or longer, in limited cases. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (“CARES”) Act was enacted and signed into U.S. law to provide economic relief to individuals and businesses facing economic hardship as a result of the COVID-19 pandemic. The Company deferred the timing of federal tax estimates and payroll taxes as permitted by the CARES Act and has availed itself of net operating loss carryback provisions |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 6 . Earnings Per Share Basic earnings per share is computed by dividing net 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 months ended March 31, 2021 and 2020 (in thousands, except per share amounts): Three Months Ended March 31, 2021 2020 Numerator: Net income from continuing operations $ 75,920 $ 5,748 Net loss from discontinued operations — (288 ) Net income $ 75,920 $ 5,460 Denominator: Total weighted average basic shares 36,109 32,337 Shares applicable to stock-based compensation 1,378 496 Total weighted average diluted shares 37,487 32,833 Earnings per common share – basic: Continuing operations $ 2.10 $ 0.18 Discontinued operations — (0.01 ) Earnings per common share – basic $ 2.10 $ 0.17 Earnings per common share – diluted: Continuing operations $ 2.03 $ 0.18 Discontinued operations — (0.01 ) Earnings per common share – diluted $ 2.03 $ 0.17 For the three months ended March 31, and |
Operating Segment Information
Operating Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Operating Segment Information | 7 . Operating Segment Information The Company provides online financial services to non-prime credit consumers and small businesses in the United States , Australia and Brazil single Geographic Information The following table presents the Company’s revenue by geographic region for the three months ended March 31, 2021 and 2020 (dollars in thousands): Three Months Ended March 31, 2021 2020 Revenue United States $ 254,866 $ 357,716 Other international countries 4,578 4,536 Total revenue $ 259,444 $ 362,252 The Company’s long-lived assets, which consist of the Company’s property and equipment, were $78.9 million, $56.2 million and $79.4 million at March 31, 2021 and 2020 and December 31, 2020, respectively. The operations for the Company’s 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 | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8 . Commitments and Contingencies Litigation On April 23, 2018, the Commonwealth of Virginia, through Attorney General Mark R. Herring, filed a lawsuit in the Circuit Court for the County of Fairfax, Virginia against NC Financial Solutions of Utah, LLC (“NC Utah”), a subsidiary of the Company. The lawsuit alleges violations of the Virginia Consumer Protection Act (“VCPA”) relating to NC Utah’s communications with customers, collections of certain payments, its loan agreements, and the rates it charged to Virginia borrowers. The plaintiff sought to enjoin NC Utah from continuing its then-existing lending practices in Virginia, and still seeks restitution, civil penalties, and costs and expenses in connection with the same. Due to a change in the law, NC Utah no longer lends to Virginia residents and the injunctive remedies sought against NC Utah’s lending practices are no longer applicable. Neither the likelihood of an unfavorable 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 carefully considered applicable Virginia law before NC Utah began lending in Virginia and, as a result, 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. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 9 . Related Party Transactions With the acquisition of OnDeck, the Company records its interest in OnDeck Canada under the equity method of accounting; as such, OnDeck Canada is deemed a related party. As of March 31, 2021 and December 31, 2020, the Company had a due from affiliate balance of $1.1 million and $1.2 million, respectively, related to OnDeck Canada that is primarily the result of labor and software charges from people and technology assets at the OnDeck parent company. On February 24, 2021 the Company contributed the platform-as-service business assumed in the OnDeck acquisition to Linear in exchange for ownership units in that entity. The Company records its interest in Linear under the equity method of accounting. As of March 31, 2021 the Company had a due to affiliate balance of $3.0 million to Linear that is primarily comprised of the remaining balances associated with the contribution and exchange. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 10 . Fair Value Measurements Recurring Fair Value Measurements The Company uses a hierarchical framework that prioritizes and ranks the market observability of inputs used in its fair value measurements. Market price observability is affected by a number of factors, including the type of asset or liability and the characteristics specific to the asset or liability being measured. Assets and liabilities with readily available, active, quoted market prices or for which fair value can be measured from actively quoted prices generally are deemed to have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. The Company classifies the inputs used to measure fair value into one of three levels as follows: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Inputs other than Level 1, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable. Level 3: Unobservable inputs for the asset or liability measured. Observable inputs are based on market data obtained from independent sources, while unobservable inputs are based on the Company’s market assumptions. Unobservable inputs require significant management judgment or estimation. In some cases, the inputs used to measure an asset or liability may fall into different levels of the fair value hierarchy. In those cases, the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level of input that is significant to the entire measurement. Such determination requires significant management judgment. During the three months ended March 31, 2021 and 2020, 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 March 31, 2021 and 2020 and December 31, 2020 are as follows (dollars in thousands): March 31, Fair Value Measurements Using 2021 Level 1 Level 2 Level 3 Financial assets: Consumer loans and finance receivables (1)(2) $ 581,398 $ — $ — $ 581,398 Small business loans and finance receivables (1)(2) 649,313 — — 649,313 Non-qualified savings plan assets (3) 4,839 4,839 — — Investment in trading security (4) 17,634 17,634 — — Total $ 1,253,184 $ 22,473 $ — $ 1,230,711 March 31, Fair Value Measurements Using 2020 Level 1 Level 2 Level 3 Financial assets: Consumer loans and finance receivables (1)(2) $ 917,222 $ — $ — $ 917,222 Small business loans and finance receivables (1) 175,985 — — 175,985 Non-qualified savings plan assets (3) 2,989 2,989 — — Investment in trading security (4) 9,729 9,729 — — Total $ 1,105,925 $ 12,718 $ — $ 1,093,207 December 31, Fair Value Measurements Using 2020 Level 1 Level 2 Level 3 Financial assets: Consumer loans and finance receivables (1)(2) $ 625,219 $ — $ — $ 625,219 Small business loans and finance receivables (1)(2) 616,287 — — 616,287 Non-qualified savings plan assets (3) 3,972 3,972 — — Investment in trading security (4) 19,273 19,273 — — Total $ 1,264,751 $ 23,245 $ — $ 1,241,506 (1) Consumer and small business loans and finance receivables are included in “Loans and finance receivables at fair value” in the consolidated balance sheets. (2) Consumer loans and finance receivables include $213.4 million, $508.3 million and $277.6 million in assets of consolidated VIEs as of March 31, 2021 and 2020 and December 31, 2020, respectively. Small business loans and finance receivables include $135.0 million and $251.3 million in assets of consolidated VIEs as of March 31, 2021 and December 31, 2020, respectively. (3) 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. (4) Investment in trading security is included in “Other assets” in the Company’s consolidated balance sheets. The Company primarily estimates the fair value of its loan and finance receivables portfolio using discounted cash flow models that have been internally developed. The models use inputs, such as estimated losses, prepayments, utilization rates, servicing costs and discount rates, that are unobservable but reflect the Company’s best estimates of the assumptions a market participant would use to calculate fair value. Certain unobservable inputs may, in isolation, have either a directionally consistent or opposite impact on the fair value of the financial instrument for a given change in that input. An increase to the net loss rate, prepayment rate, servicing cost, or discount rate would decrease the fair value of the Company’s loans and finance receivables. When multiple inputs are used within the valuation techniques for loans, a change in one input in a certain direction may be offset by an opposite change from another input. The fair value of the nonqualified savings plan assets was deemed Level 1 as they are publicly traded equity securities for which market prices of identical assets are readily observable. The fair value of the investment in trading security was deemed Level 1 as it is a publicly traded fund with active market pricing that is readily available. The Company had no liabilities measured at fair value on a recurring basis as of March 31, 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 March 31, Financial Assets and Liabilities Not Measured at Fair Value The Company’s financial assets and liabilities as of March 31, 2021 and 2020 and December 31, 2020 that are not measured at fair value in the consolidated balance sheets are as follows (dollars in thousands): Balance at March 31, Fair Value Measurements Using 2021 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 324,328 $ 324,328 $ — $ — Restricted cash (1) 49,879 49,879 — — Investment in unconsolidated investee (2) 6,918 — — 6,918 Total $ 381,125 $ 374,207 $ — $ 6,918 Financial liabilities: Revolving line of credit $ 102,000 $ — $ — $ 102,000 Securitization notes 155,035 — 156,584 — 8.50% senior notes due 2024 250,000 — 256,655 — 8.50% senior notes due 2025 375,000 — 389,940 — Other long-term debt 795 — — 795 Total $ 882,830 $ — $ 803,179 $ 102,795 Balance at March 31, Fair Value Measurements Using 2020 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 161,076 $ 161,076 $ — $ — Restricted cash (1) 42,742 42,742 — — Investment in unconsolidated investee (2) 6,918 — — 6,918 Total $ 210,736 $ 203,818 $ — $ 6,918 Financial liabilities: Revolving line of credit $ 105,250 $ — $ — $ 105,250 Securitization notes 373,864 — 358,465 — 8.50% senior notes due 2024 250,000 — 216,225 — 8.50% senior notes due 2025 375,000 — 315,926 — Total $ 1,104,114 $ — $ 890,616 $ 105,250 Balance at December 31, Fair Value Measurements Using 2020 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 297,273 $ 297,273 $ — $ — Restricted cash (1) 71,927 71,927 — — Investment in unconsolidated investee (2) 6,918 — — 6,918 Total $ 376,118 $ 369,200 $ — $ 6,918 Financial liabilities: Revolving line of credit $ — $ — $ — $ — Securitization notes 330,632 — 333,532 — 8.50% senior notes due 2024 250,000 — 247,680 — 8.50% senior notes due 2025 375,000 — 367,770 — Total $ 955,632 $ — $ 948,982 $ — (1) Restricted cash includes $40.3 million, $37.8 million and $64.8 million in assets of consolidated VIEs as of March 31, 2021 and 2020 and December 31, 2020, respectively. (2) Investment in unconsolidated investee is included in “Other assets” in the consolidated balance sheets. Cash and cash equivalents and restricted cash bear interest at market rates and have maturities of less than 90 days. The carrying amount of restricted cash and cash equivalents approximates fair value. 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. The Company measures the fair value of its revolving line of credit using Level 3 inputs. The Company considered the fair value of its other long-term debt and the timing of expected payment(s). The fair values of the Company’s Securitization Notes and senior notes are estimated based on quoted prices in markets that are not active, which are deemed Level 2 inputs. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 11 . Subsequent Events Subsequent events have been reviewed through the date these financial statements were available to be issued. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements of the Company reflect the historical results of operations and cash flows of the Company during each respective period. The consolidated financial statements include goodwill and intangible assets arising from businesses previously acquired. The financial information included herein may not be indicative of the consolidated financial position, operating results, changes in stockholders’ equity and cash flows of the Company in the future. Intercompany transactions are eliminated. 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. On July 28, 2020, the Company and OnDeck Capital Inc. (“OnDeck”) entered into an Agreement and Plan of Merger (the “Merger Agreement”) among the Company, OnDeck and Energy Merger Sub, Inc., a wholly owned subsidiary of the Company (“Merger Sub”), pursuant to which, subject to the satisfaction or waiver of the conditions set forth therein, Merger Sub would merge with and into OnDeck, with OnDeck surviving as an indirect wholly owned subsidiary of the Company. On October 13, 2020, the Company and OnDeck completed the transaction following the approval of OnDeck’s stockholders and the satisfaction of all other closing conditions. The accompanying unaudited consolidated results of operations for the three months ended 2021 With the acquisition of OnDeck, the Company owns a controlling interest in On Deck Capital Australia PTY LTD (“OnDeck Australia”). The remaining interests are owned by an unrelated third party. We consolidate the financial position and results of operations of this entity under the voting interest model. The noncontrolling interest, which is presented as a separate component of consolidated equity, represents the minority owners’ proportionate share of the equity of the entity and is adjusted for the minority owners’ share of the earnings, losses, investments and distributions. The consolidated financial statements presented as of March 31, 2021 and 2020 and for the three-month periods ended March 31, 2021 and 2020 are unaudited but, in management’s opinion, include all adjustments necessary for a fair presentation of the results for such interim periods. Operating results for the three-month period are not necessarily indicative of the results that may be expected for the full fiscal year. Certain prior period amounts have been reclassified to conform to the current year presentation. With the acquisition of OnDeck, small business loans comprise a significantly larger portion of the Company’s overall loan portfolio. Where presented on a disaggregated basis, loans and finance receivables that were previously grouped as line of credit accounts and installment loans and RPAs, are now grouped at the consumer and small business levels as management has deemed these groupings to be more meaningful to users of the financial statements. These consolidated financial statements and related notes should be read in conjunction with the Company’s audited consolidated financial statements as of December 31, 2020 and 2019 and for the years ended December 31, 2020, 2019 and 2018 and related notes, which are included on Form 10-K filed with the SEC on February 26, 2021. |
Discontinued Operations | Discontinued Operations Beginning in 2007, the Company provided services in the United Kingdom under various brands, including QuickQuid, Pounds to Pocket and On Stride. Due in part to the level of claim and legal settlement costs incurred in conducting our U.K. business and unsuccessful discussions with U.K regulators, on October 24, 2019, the Company announced its intent to exit the U.K. market. On October 25, 2019, Grant Thornton LLP, a licensed U.K. insolvency practitioner, was appointed as administrators (“Administrators”) to take control of management of the U.K. businesses. The effect of the U.K. businesses’ entry into administration was to place their management, affairs, business and property under the direct control of the Administrators. During the 2020 the Company recorded an impairment charge of $0.4 million ($0.3 million net of taxes) to write down a receivable on certain expenses incurred by the Company prior to administration that were deemed non-reimbursable by the Administrators. The Company entered into a service agreement with the Administrators under which the Company provides certain administrative, technical and other services in exchange for compensation by the Administrators. The agreement is scheduled to expire July 8, 2021 but with options to extend the term for three-month |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the consolidated balance sheets (in thousands): March 31, 2021 2020 Cash and cash equivalents $ 324,328 $ 161,076 Restricted cash 49,879 42,742 Total cash, cash equivalents and restricted cash $ 374,207 $ 203,818 |
Loans and Finance Receivables | Loans and Finance Receivables The Company utilizes the fair value option on its entire loan and finance receivable portfolio. As such, loans and finance receivables are carried at fair value in the consolidated balance sheet with changes in fair value recorded in the consolidated income statement. To derive the fair value, the Company generally utilizes discounted cash flow analyses that factor in estimated losses, prepayments, utilization rates and servicing costs over the estimated duration of the underlying assets. Loss, prepayment, utilization and servicing cost assumptions are determined using historical loss data and include appropriate consideration of recent trends and anticipated future performance. Future cash flows are discounted using a rate of return that the Company believes a market participant would require. Accrued and unpaid interest and fees are included in “Loans and finance receivables” in the consolidated balance sheets. |
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. Excluding OnDeck loans and finance receivables, when a customer does not make a scheduled payment as of the due date, that payment is considered delinquent, and the remainder of the receivable balance is considered current. If the customer does not make two consecutive payments, the entire account or loan is classified as delinquent and placed on a non-accrual status. For the OnDeck portfolio, a loan is considered to be delinquent when the scheduled payments are one day past due. Loans are placed in nonaccrual status and the accrual of interest income is stopped on loans that are delinquent and non-paying. Loans are returned to accrual status if they are brought to non-delinquent status or have performed in accordance with the contractual terms for a reasonable period of time and, in the Company’s judgment, will continue to make periodic principal and interest payments as scheduled. The Company allows for normal payment processing time before considering a loan delinquent but does not provide for any additional grace period. Where permitted by law and as long as a loan is not considered delinquent, a customer may choose to renew or extend the due date on certain installment loans. In order to renew or extend a single-pay loan, a customer must agree to pay the current finance charge for the right to make a later payment of the outstanding principal balance plus an additional finance charge. In order to renew an installment loan, the customer enters into a new installment loan contract and agrees to pay the principal balance and finance charge in accordance with the terms of the new loan contract. If a single-pay loan is renewed, but the customer fails to pay that loan’s current finance charge as of the due date, the unpaid finance charge is classified as delinquent. In response to the COVID-19 pandemic, the Company enhanced the forbearance options on its loan products, offering additional relief to impacted customers with features such as payment deferrals without the incurrence of additional finance charges or late fees. If a loan is deemed to be current and the customer makes a deferral or payment modification, the loan is still deemed to be current until the next scheduled payment is missed. The Company generally charges off loans and finance receivables between 60 and 65 days delinquent. If a loan or finance receivable is deemed uncollectible prior to this, it is charged off at that point. For the OnDeck portfolio, the Company generally charges off a loan when it is probable that that it will be unable to collect all of the remaining principal payments, which is generally after 90 days of delinquency and 30 days of non-activity. 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 that were previously charged off are generally recognized when collected or sold. |
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 CSO programs (“CSO fees”), revenue on RPAs, service charges, draw fees, minimum billing fees, purchase fees, origination fees, late fees and non-sufficient funds fees as permitted by applicable laws and pursuant to the agreement with the customer. Interest is generally recognized on an effective yield basis over the contractual term of the loan on installment loans, the estimated outstanding period of the draw on line of credit accounts, or the projected delivery term on RPAs. CSO fees are recognized over the term of the loan. Late and nonsufficient funds fees are recognized when assessed to the customer. |
Marketing Expenses | Marketing Expenses Marketing expenses consist of digital costs, lead purchase costs and offline marketing costs such as television and direct mail advertising. All marketing expenses are expensed as incurred. |
Equity Method Investments | Equity Method Investments With the acquisition of OnDeck, as discussed in Note 2, the Company records its interest in On Deck Capital Canada Holdings, Inc. (“OnDeck Canada”) On February 24, 2021 the Company contributed the platform-as-service business assumed in the OnDeck acquisition to Linear Financial Technologies Holding LLC (“Linear”) in exchange for ownership units in that entity. The Company records its interest in Linear under the equity method of accounting. As of March 31, 2021, the carrying value of the Company’s investment in Linear was $6.8 million, which the Company has included in “Other assets” on the consolidated balance sheets. Equity method income has been included in “Equity method investment income” in the consolidated income statements. |
Variable Interest Entities | Variable Interest Entities As part of the Company’s overall funding strategy and as part of its efforts to support its liquidity from varying sources, the Company has established a securitization program through several securitization facilities. The Company transfers certain loan receivables to VIEs, which issue notes backed by the underlying loan receivables and are serviced by another wholly-owned subsidiary of the Company. The cash flows from the loans held by the VIEs are used to repay obligations under the notes. 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. |
Adopted Accounting Standards | Adopted In November 2019, the Financial Accounting Standards Board (“FASB”) Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the consolidated balance sheets (in thousands): March 31, 2021 2020 Cash and cash equivalents $ 324,328 $ 161,076 Restricted cash 49,879 42,742 Total cash, cash equivalents and restricted cash $ 374,207 $ 203,818 |
Loans and Finance Receivables (
Loans and Finance Receivables (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Schedule of Revenue Generated from Loans and Finance Receivables | Revenue generated from the Company’s loans and finance receivables for the three months ended March 31, 2021 and 2020 was as follows (dollars in thousands): Three Months Ended March 31, 2021 2020 Consumer loans and finance receivables revenue $ 181,737 $ 335,900 Small business loans and finance receivables revenue 75,560 23,906 Total loans and finance receivables revenue 257,297 359,806 Other 2,147 2,446 Total revenue $ 259,444 $ 362,252 |
Components of Company-owned Loans and Finance Receivables at Fair Value | The components of Company-owned loans and finance receivables at March 31, 2021 and 2020 and December 31, 2020 were as follows (dollars in thousands): As of March 31, 2021 Small Consumer Business Total Principal balance - accrual $ 493,553 $ 668,955 $ 1,162,508 Principal balance - non-accrual 29,617 27,723 57,340 Total principal balance 523,170 696,678 1,219,848 Loans and finance receivables at fair value - accrual 577,999 636,953 1,214,952 Loans and finance receivables at fair value - non-accrual 3,399 12,360 15,759 Loans and finance receivables at fair value 581,398 649,313 1,230,711 Difference between principal balance and fair value $ 58,228 $ (47,365 ) $ 10,863 As of March 31, 2020 Small Consumer Business Total Principal balance - accrual $ 801,084 $ 179,576 $ 980,660 Principal balance - non-accrual 76,419 4,329 80,748 Total principal balance 877,503 183,905 1,061,408 Loans and finance receivables at fair value - accrual 899,808 175,096 1,074,904 Loans and finance receivables at fair value - non-accrual 17,414 889 18,303 Loans and finance receivables at fair value $ 917,222 $ 175,985 $ 1,093,207 Difference between principal balance and fair value $ 39,719 $ (7,920 ) $ 31,799 As of December 31, 2020 Small Consumer Business Total Principal balance - accrual $ 547,015 $ 634,476 $ 1,181,491 Principal balance - non-accrual 29,389 52,254 81,643 Total principal balance 576,404 686,730 1,263,134 Loans and finance receivables at fair value - accrual 621,257 592,654 1,213,911 Loans and finance receivables at fair value - non-accrual 3,962 23,633 27,595 Loans and finance receivables at fair value $ 625,219 $ 616,287 $ 1,241,506 Difference between principal balance and fair value $ 48,815 $ (70,443 ) $ (21,628 ) |
Schedule of Changes in Fair Value of Company-owned Loans and Finance Receivables | Changes in the fair value of Company-owned loans and finance receivables during the three months ended March 31, 2021 were as follows (dollars in thousands): Three Months Ended March 31, 2021 Small Consumer Business Total Balance at beginning of period $ 625,219 $ 616,287 $ 1,241,506 Originations or acquisitions 167,947 322,111 490,058 Interest and fees (1) 181,737 75,560 257,297 Repayments (367,075 ) (369,212 ) (736,287 ) Charge-offs, net (2) (36,408 ) (18,042 ) (54,450 ) Net change in fair value (2) 10,335 23,037 33,372 Effect of foreign currency translation (357 ) (428 ) (785 ) Balance at end of period $ 581,398 $ 649,313 $ 1,230,711 Three Months Ended March 31, 2020 Small Consumer Business Total Balance at beginning of period $ 1,015,798 $ 171,785 $ 1,187,583 Originations or acquisitions 343,306 76,435 419,741 Interest and fees (1) 335,900 23,906 359,806 Repayments (563,835 ) (71,147 ) (634,982 ) Charge-offs, net (2) (191,306 ) (11,918 ) (203,224 ) Net change in fair value (2) (19,419 ) (13,076 ) (32,495 ) Effect of foreign currency translation (3,222 ) — (3,222 ) Balance at end of period $ 917,222 $ 175,985 $ 1,093,207 (1) Included in “Revenue” in the consolidated statements of income. (2) Included in “Change in Fair Value” in the consolidated statements of income. |
Long-term Debt (Tables)
Long-term Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt Instruments and Balances Outstanding | The Company’s long-term debt instruments and balances outstanding as of March 31, 2021 and 2020 and December 31, 2020 were as follows (dollars in thousands): Weighted Outstanding average Borrowing March 31, December 31, Maturity date interest rate (8) capacity 2021 2020 2020 Funding Debt: 2018-1 Securitization Facility July 2023 (1 ) 5.00% $ 150,000 $ 32,774 $ 52,000 $ 39,901 2018-2 Securitization Facility October 2022 (2 ) 3.87% 26,850 26,850 110,000 49,519 2019-1 Securitization Facility February 2022 (3 ) — — — 50,000 30,000 2018-A Notes May 2026 7.37% 13,138 13,138 34,078 18,140 2019-A Notes June 2026 6.61% 55,252 55,252 127,798 68,782 OnDeck Account Receivables Trust 2013-1 May 2021 (4 ) — — — — 29,728 Receivable Assets of OnDeck December 2023 (5 ) 2.62% 100,000 — — 22,915 OnDeck Asset Funding II August 2022 (6 ) 3.12% 175,000 2,605 — 52,773 Other funding debt (9) Various (7 ) 4.54% 61,218 24,682 — 19,885 Total funding debt 5.50% $ 581,458 $ 155,301 $ 373,876 $ 331,643 Corporate Debt: 8.50% Senior Notes Due 2024 September 2024 8.50% $ 250,000 $ 250,000 $ 250,000 $ 250,000 8.50% Senior Notes Due 2025 September 2025 8.50% 375,000 375,000 375,000 375,000 Revolving line of credit June 2022 4.25% 125,000 (10 ) 102,000 105,250 — Other corporate debt April 2022 1.00% 795 795 — — Total corporate debt 7.90% $ 750,795 $ 727,795 $ 730,250 $ 625,000 Less: Long-term debt issuance costs $ (8,316 ) $ (12,382 ) $ (9,171 ) Less: Debt discounts (266 ) (12 ) (1,011 ) Total long-term debt $ 874,514 $ 1,091,732 $ 946,461 ( 1 ) The period during which new borrowings may be made under this facility expires in July 2021. ( 2 ) The period during which new borrowings may be made under this facility expired in October 2020. ( 3 ) The period during which new borrowings may be made under this facility expired in February 2021. This facility was repaid and terminated on February 25, 2021. ( 4 ) The period during which new borrowings may be made under this facility expired in October 2020. This facility was repaid and terminated on February 19, 2021. ( 5 ) The period during which new borrowings may be made under this facility expires in December 2022. ( 6 ) The period during which new borrowings may be made under this facility expires in August 2021. ( 7 ) The periods during which new borrowings may be made under the various agreements expire between June 2021 and March 2024. Maturity dates range from December 2021 through March 2024. ( 8 ) The weighted average interest rate is determined based on the rates and principal balances on March 31, 2021. It does not include the impact of the amortization of deferred loan origination costs or debt discounts associated with OnDeck purchase accounting. ( 9 ) These debt facilities support our operations in Australia and are denominated in Australian dollars. The total local currency borrowing capacity is AU$80.6 million, of which there is AU$32.5 million in principal outstanding at March 31, 2021. ( 1 0 ) We had an outstanding letter of credit under the Revolving line of credit of $0.5 million, $1.0 million and $1.0 million as of March 31, 2021 and 2020 and December 31, 2020, respectively. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 months ended March 31, 2021 and 2020 (in thousands, except per share amounts): Three Months Ended March 31, 2021 2020 Numerator: Net income from continuing operations $ 75,920 $ 5,748 Net loss from discontinued operations — (288 ) Net income $ 75,920 $ 5,460 Denominator: Total weighted average basic shares 36,109 32,337 Shares applicable to stock-based compensation 1,378 496 Total weighted average diluted shares 37,487 32,833 Earnings per common share – basic: Continuing operations $ 2.10 $ 0.18 Discontinued operations — (0.01 ) Earnings per common share – basic $ 2.10 $ 0.17 Earnings per common share – diluted: Continuing operations $ 2.03 $ 0.18 Discontinued operations — (0.01 ) Earnings per common share – diluted $ 2.03 $ 0.17 |
Operating Segment Information (
Operating Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary of Company's Revenue by Geographical Region | The following table presents the Company’s revenue by geographic region for the three months ended March 31, 2021 and 2020 (dollars in thousands): Three Months Ended March 31, 2021 2020 Revenue United States $ 254,866 $ 357,716 Other international countries 4,578 4,536 Total revenue $ 259,444 $ 362,252 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 and 2020 and December 31, 2020 are as follows (dollars in thousands): March 31, Fair Value Measurements Using 2021 Level 1 Level 2 Level 3 Financial assets: Consumer loans and finance receivables (1)(2) $ 581,398 $ — $ — $ 581,398 Small business loans and finance receivables (1)(2) 649,313 — — 649,313 Non-qualified savings plan assets (3) 4,839 4,839 — — Investment in trading security (4) 17,634 17,634 — — Total $ 1,253,184 $ 22,473 $ — $ 1,230,711 March 31, Fair Value Measurements Using 2020 Level 1 Level 2 Level 3 Financial assets: Consumer loans and finance receivables (1)(2) $ 917,222 $ — $ — $ 917,222 Small business loans and finance receivables (1) 175,985 — — 175,985 Non-qualified savings plan assets (3) 2,989 2,989 — — Investment in trading security (4) 9,729 9,729 — — Total $ 1,105,925 $ 12,718 $ — $ 1,093,207 December 31, Fair Value Measurements Using 2020 Level 1 Level 2 Level 3 Financial assets: Consumer loans and finance receivables (1)(2) $ 625,219 $ — $ — $ 625,219 Small business loans and finance receivables (1)(2) 616,287 — — 616,287 Non-qualified savings plan assets (3) 3,972 3,972 — — Investment in trading security (4) 19,273 19,273 — — Total $ 1,264,751 $ 23,245 $ — $ 1,241,506 (1) Consumer and small business loans and finance receivables are included in “Loans and finance receivables at fair value” in the consolidated balance sheets. (2) Consumer loans and finance receivables include $213.4 million, $508.3 million and $277.6 million in assets of consolidated VIEs as of March 31, 2021 and 2020 and December 31, 2020, respectively. Small business loans and finance receivables include $135.0 million and $251.3 million in assets of consolidated VIEs as of March 31, 2021 and December 31, 2020, respectively. (3) 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. (4) Investment in trading security is included in “Other assets” in the Company’s consolidated balance sheets. |
Financial Assets and Liabilities Not Measured at Fair Value | The Company’s financial assets and liabilities as of March 31, 2021 and 2020 and December 31, 2020 that are not measured at fair value in the consolidated balance sheets are as follows (dollars in thousands): Balance at March 31, Fair Value Measurements Using 2021 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 324,328 $ 324,328 $ — $ — Restricted cash (1) 49,879 49,879 — — Investment in unconsolidated investee (2) 6,918 — — 6,918 Total $ 381,125 $ 374,207 $ — $ 6,918 Financial liabilities: Revolving line of credit $ 102,000 $ — $ — $ 102,000 Securitization notes 155,035 — 156,584 — 8.50% senior notes due 2024 250,000 — 256,655 — 8.50% senior notes due 2025 375,000 — 389,940 — Other long-term debt 795 — — 795 Total $ 882,830 $ — $ 803,179 $ 102,795 Balance at March 31, Fair Value Measurements Using 2020 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 161,076 $ 161,076 $ — $ — Restricted cash (1) 42,742 42,742 — — Investment in unconsolidated investee (2) 6,918 — — 6,918 Total $ 210,736 $ 203,818 $ — $ 6,918 Financial liabilities: Revolving line of credit $ 105,250 $ — $ — $ 105,250 Securitization notes 373,864 — 358,465 — 8.50% senior notes due 2024 250,000 — 216,225 — 8.50% senior notes due 2025 375,000 — 315,926 — Total $ 1,104,114 $ — $ 890,616 $ 105,250 Balance at December 31, Fair Value Measurements Using 2020 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 297,273 $ 297,273 $ — $ — Restricted cash (1) 71,927 71,927 — — Investment in unconsolidated investee (2) 6,918 — — 6,918 Total $ 376,118 $ 369,200 $ — $ 6,918 Financial liabilities: Revolving line of credit $ — $ — $ — $ — Securitization notes 330,632 — 333,532 — 8.50% senior notes due 2024 250,000 — 247,680 — 8.50% senior notes due 2025 375,000 — 367,770 — Total $ 955,632 $ — $ 948,982 $ — (1) Restricted cash includes $40.3 million, $37.8 million and $64.8 million in assets of consolidated VIEs as of March 31, 2021 and 2020 and December 31, 2020, respectively. (2) Investment in unconsolidated investee is included in “Other assets” in the consolidated balance sheets. |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Significant Accounting Policies [Line Items] | |||
Revenue | $ 259,444 | $ 362,252 | |
ASU 2019-12 | |||
Significant Accounting Policies [Line Items] | |||
Change in accounting principle, accounting standards update, adopted [true false] | true | ||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2021 | ||
Change in accounting principle, accounting standards update, immaterial effect [true false] | true | ||
Other Assets | On Deck Capital Incorporation | |||
Significant Accounting Policies [Line Items] | |||
Carrying value of investment | $ 11,400 | $ 10,500 | |
Other Assets | Linear | |||
Significant Accounting Policies [Line Items] | |||
Carrying value of investment | $ 6,800 | ||
Minimum | |||
Significant Accounting Policies [Line Items] | |||
Days for delinquent loans to be charged off | 60 days | ||
Delinquent loans expiry period (in days) | 1 day | ||
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Days for delinquent loans to be charged off | 65 days | ||
Delinquent loans expiry period (in days) | 64 days | ||
U.K. Business | |||
Significant Accounting Policies [Line Items] | |||
Agreement, scheduled expiration date | July 8, 2021 | ||
Options to extend term | 3 months | ||
Revenue | $ 700 | 1,900 | |
Administrative fee due | $ 1,200 | 1,000 | $ 900 |
Discontinued Operations | |||
Significant Accounting Policies [Line Items] | |||
Impairment charges | 400 | ||
Impairment charges, net of tax | $ 300 |
Significant Accounting Polici_5
Significant Accounting Policies - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||||
Cash and cash equivalents | [1] | $ 324,328 | $ 297,273 | $ 161,076 | |
Restricted cash | [1] | 49,879 | 71,927 | 42,742 | |
Total cash, cash equivalents and restricted cash | $ 374,207 | $ 369,200 | $ 203,818 | $ 80,964 | |
[1] | Includes amounts in wholly owned, bankruptcy-remote special purpose subsidiaries (“VIEs”) presented separately in the table below. |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Mar. 19, 2021 | Oct. 12, 2020 | Jul. 28, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 279,275 | $ 267,974 | $ 267,868 | |||
On Deck Capital Incorporation | ||||||
Business Acquisition [Line Items] | ||||||
Merger agreement date | Jul. 28, 2020 | |||||
Business acquisition, transaction completed date | Oct. 13, 2020 | |||||
Business acquisition per share price to be received by shareholders | $ 18.74 | $ 0.12 | ||||
Business acquisition number of common shares issuable for each common stock held by shareholders | 0.092 | |||||
Acquisition of OnDeck, shares | 5,600,000 | |||||
Business acquisition, value of common stock and cash provided in exchange | $ 111,500 | |||||
Business acquisition, cancellation or replacement of certain equity awards | $ 4,200 | |||||
Pangea Universal Holdings | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition, value of common stock and cash provided in exchange | $ 32,900 | |||||
Cash paid | 30,000 | |||||
Loan forgiveness | 2,900 | |||||
Purchase Consideration, Intangible assets | 19,800 | |||||
Goodwill | $ 11,300 |
Loans and Finance Receivables -
Loans and Finance Receivables - Schedule of Revenue Generated from Loans and Finance Receivables (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans and finance receivables revenue | [1] | $ 257,297 | $ 359,806 |
Other | 2,147 | 2,446 | |
Total revenue | 259,444 | 362,252 | |
Consumer Loans and Finance Receivables Revenue | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans and finance receivables revenue | 181,737 | 335,900 | |
Small Business Loans and Finance Receivables Revenue | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans and finance receivables revenue | $ 75,560 | $ 23,906 | |
[1] | Included in “Revenue” in the consolidated statements of income. |
Loans and Finance Receivables_2
Loans and Finance Receivables - Components of Company-owned Loans and Finance Receivables At Fair Value (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Principal balance - accrual | $ 1,162,508 | $ 1,181,491 | $ 980,660 | ||||
Principal balance - non-accrual | 57,340 | 81,643 | 80,748 | ||||
Total principal balance | 1,219,848 | 1,263,134 | 1,061,408 | ||||
Loans and finance receivables at fair value - accrual | 1,214,952 | 1,213,911 | 1,074,904 | ||||
Loans and finance receivables at fair value - non-accrual | 15,759 | 27,595 | 18,303 | ||||
Loans and finance receivables at fair value | 1,230,711 | [1] | 1,241,506 | [1] | 1,093,207 | [1] | $ 1,187,583 |
Difference between principal balance and fair value | 10,863 | (21,628) | 31,799 | ||||
Consumer | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Principal balance - accrual | 493,553 | 547,015 | 801,084 | ||||
Principal balance - non-accrual | 29,617 | 29,389 | 76,419 | ||||
Total principal balance | 523,170 | 576,404 | 877,503 | ||||
Loans and finance receivables at fair value - accrual | 577,999 | 621,257 | 899,808 | ||||
Loans and finance receivables at fair value - non-accrual | 3,399 | 3,962 | 17,414 | ||||
Loans and finance receivables at fair value | 581,398 | 625,219 | 917,222 | 1,015,798 | |||
Difference between principal balance and fair value | 58,228 | 48,815 | 39,719 | ||||
Small Business | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Principal balance - accrual | 668,955 | 634,476 | 179,576 | ||||
Principal balance - non-accrual | 27,723 | 52,254 | 4,329 | ||||
Total principal balance | 696,678 | 686,730 | 183,905 | ||||
Loans and finance receivables at fair value - accrual | 636,953 | 592,654 | 175,096 | ||||
Loans and finance receivables at fair value - non-accrual | 12,360 | 23,633 | 889 | ||||
Loans and finance receivables at fair value | 649,313 | 616,287 | 175,985 | $ 171,785 | |||
Difference between principal balance and fair value | $ (47,365) | $ (70,443) | $ (7,920) | ||||
[1] | Includes amounts in wholly owned, bankruptcy-remote special purpose subsidiaries (“VIEs”) presented separately in the table below. |
Loans and Finance Receivables_3
Loans and Finance Receivables - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Accounts Notes And Loans Receivable [Line Items] | |||
Active consumer loans owned by third-party lenders | $ 6.8 | $ 10.2 | $ 11.8 |
Accrual for losses on consumer loan guaranty obligations | 7.2 | 10.3 | 12.4 |
Accrual for third party lender owned consumer loans, outstanding principle amount | 5.7 | 8.8 | 10.3 |
Financial Asset, Equal to or Greater than 90 Days Past Due | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Aggregate fair value of loans and finance receivables that are 90 days or more past due | 7.2 | 14.3 | $ 0 |
Aggregate fair value of loans and finance receivables in non-accrual status | 7 | 14.1 | |
Aggregate unpaid principal balance for loans and finance receivables that are 90 days or more past due | $ 13.7 | $ 33.9 |
Loans and Finance Receivables_4
Loans and Finance Receivables - Schedule of Changes in Fair Value of Company-owned Loans and Finance Receivables (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | |||
Accounts Notes And Loans Receivable [Line Items] | ||||
Balance at beginning of period | $ 1,241,506 | [1] | $ 1,187,583 | |
Originations or acquisitions | 490,058 | 419,741 | ||
Interest and fees | [2] | 257,297 | 359,806 | |
Repayments | (736,287) | (634,982) | ||
Charge-offs, net | [3] | (54,450) | (203,224) | |
Net change in fair value | [3] | 33,372 | (32,495) | |
Effect of foreign currency translation | (785) | (3,222) | ||
Balance at end of period | [1] | 1,230,711 | 1,093,207 | |
Consumer | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Balance at beginning of period | 625,219 | 1,015,798 | ||
Originations or acquisitions | 167,947 | 343,306 | ||
Interest and fees | [2] | 181,737 | 335,900 | |
Repayments | (367,075) | (563,835) | ||
Charge-offs, net | [3] | (36,408) | (191,306) | |
Net change in fair value | [3] | 10,335 | (19,419) | |
Effect of foreign currency translation | (357) | (3,222) | ||
Balance at end of period | 581,398 | 917,222 | ||
Small Business | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Balance at beginning of period | 616,287 | 171,785 | ||
Originations or acquisitions | 322,111 | 76,435 | ||
Interest and fees | [2] | 75,560 | 23,906 | |
Repayments | (369,212) | (71,147) | ||
Charge-offs, net | [3] | (18,042) | (11,918) | |
Net change in fair value | [3] | 23,037 | (13,076) | |
Effect of foreign currency translation | (428) | |||
Balance at end of period | $ 649,313 | $ 175,985 | ||
[1] | Includes amounts in wholly owned, bankruptcy-remote special purpose subsidiaries (“VIEs”) presented separately in the table below. | |||
[2] | Included in “Revenue” in the consolidated statements of income. | |||
[3] | Included in “Change in Fair Value” in the consolidated statements of income. |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt Instruments and Balances Outstanding (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | ||
Debt Instrument [Line Items] | ||||
Weighted average interest rate | 8.61% | 8.15% | ||
Less: Long-term debt issuance costs | $ (8,316) | $ (9,171) | $ (12,382) | |
Less: Debt discounts | (266) | (1,011) | (12) | |
Total long-term debt | [1] | $ 874,514 | 946,461 | 1,091,732 |
Funding Debt | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate | [2] | 5.50% | ||
Borrowing capacity | $ 581,458 | |||
Total debt, outstanding | $ 155,301 | 331,643 | 373,876 | |
Funding Debt | 2018-1 Securitization Facility | ||||
Debt Instrument [Line Items] | ||||
Maturity date | [3] | 2023-07 | ||
Weighted average interest rate | [2] | 5.00% | ||
Borrowing capacity | $ 150,000 | |||
Total debt, outstanding | $ 32,774 | 39,901 | 52,000 | |
Funding Debt | 2018-2 Securitization Facility | ||||
Debt Instrument [Line Items] | ||||
Maturity date | [4] | 2022-10 | ||
Weighted average interest rate | [2] | 3.87% | ||
Borrowing capacity | $ 26,850 | |||
Total debt, outstanding | $ 26,850 | 49,519 | 110,000 | |
Funding Debt | 2019-1 Securitization Facility | ||||
Debt Instrument [Line Items] | ||||
Maturity date | [5] | 2022-02 | ||
Total debt, outstanding | 30,000 | 50,000 | ||
Funding Debt | 2018-A Notes | ||||
Debt Instrument [Line Items] | ||||
Maturity date | 2026-05 | |||
Weighted average interest rate | [2] | 7.37% | ||
Borrowing capacity | $ 13,138 | |||
Total debt, outstanding | $ 13,138 | 18,140 | 34,078 | |
Funding Debt | 2019-A Notes | ||||
Debt Instrument [Line Items] | ||||
Maturity date | 2026-06 | |||
Weighted average interest rate | [2] | 6.61% | ||
Borrowing capacity | $ 55,252 | |||
Total debt, outstanding | $ 55,252 | 68,782 | 127,798 | |
Funding Debt | OnDeck Account Receivables Trust 2013-1 | ||||
Debt Instrument [Line Items] | ||||
Maturity date | [6] | 2021-05 | ||
Total debt, outstanding | 29,728 | |||
Funding Debt | Receivable Assets of OnDeck | ||||
Debt Instrument [Line Items] | ||||
Maturity date | [7] | 2023-12 | ||
Weighted average interest rate | [2] | 2.62% | ||
Borrowing capacity | $ 100,000 | |||
Total debt, outstanding | 22,915 | |||
Funding Debt | OnDeck Asset Funding II | ||||
Debt Instrument [Line Items] | ||||
Maturity date | [8] | 2022-08 | ||
Weighted average interest rate | [2] | 3.12% | ||
Borrowing capacity | $ 175,000 | |||
Total debt, outstanding | $ 2,605 | 52,773 | ||
Funding Debt | Other Funding Debt | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate | [2],[9] | 4.54% | ||
Borrowing capacity | [9] | $ 61,218 | ||
Total debt, outstanding | $ 24,682 | 19,885 | ||
Corporate Debt | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate | [2] | 7.90% | ||
Borrowing capacity | $ 750,795 | |||
Total corporate debt | $ 727,795 | 625,000 | 730,250 | |
Corporate Debt | Revolving Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Maturity date | 2022-06 | |||
Weighted average interest rate | [2] | 4.25% | ||
Borrowing capacity | [10] | $ 125,000 | ||
Revolving line of credit | $ 102,000 | 105,250 | ||
Corporate Debt | 8.50% Senior Notes Due 2024 | ||||
Debt Instrument [Line Items] | ||||
Maturity date | 2024-09 | |||
Weighted average interest rate | [2] | 8.50% | ||
Borrowing capacity | $ 250,000 | |||
Senior Notes | $ 250,000 | 250,000 | 250,000 | |
Corporate Debt | 8.50% Senior Notes Due 2025 | ||||
Debt Instrument [Line Items] | ||||
Maturity date | 2025-09 | |||
Weighted average interest rate | [2] | 8.50% | ||
Borrowing capacity | $ 375,000 | |||
Senior Notes | $ 375,000 | $ 375,000 | $ 375,000 | |
Corporate Debt | Other Corporate Debt | ||||
Debt Instrument [Line Items] | ||||
Maturity date | 2022-04 | |||
Weighted average interest rate | [2] | 1.00% | ||
Borrowing capacity | $ 795 | |||
Total debt, outstanding | $ 795 | |||
[1] | Includes amounts in wholly owned, bankruptcy-remote special purpose subsidiaries (“VIEs”) presented separately in the table below. | |||
[2] | The weighted average interest rate is determined based on the rates and principal balances on March 31, 2021. It does not include the impact of the amortization of deferred loan origination costs or debt discounts associated with OnDeck purchase accounting. | |||
[3] | The period during which new borrowings may be made under this facility expires in July 2021. | |||
[4] | The period during which new borrowings may be made under this facility expired in October 2020. | |||
[5] | The period during which new borrowings may be made under this facility expired in February 2021. This facility was repaid and terminated on February 25, 2021. | |||
[6] | The period during which new borrowings may be made under this facility expired in October 2020. This facility was repaid and terminated on February 19, 2021. | |||
[7] | The period during which new borrowings may be made under this facility expires in December 2022. | |||
[8] | The period during which new borrowings may be made under this facility expires in August 2021. | |||
[9] | These debt facilities support our operations in Australia and are denominated in Australian dollars. The total local currency borrowing capacity is AU$80.6 million, of which there is AU$32.5 million in principal outstanding at March 31, 2021 | |||
[10] | We had an outstanding letter of credit under the Revolving line of credit of $0.5 million, $1.0 million and $1.0 million as of March 31, 2021 and 2020 and December 31, 2020, respectively. |
Long-term Debt - Summary of L_2
Long-term Debt - Summary of Long-Term Debt Instruments and Balances Outstanding (Parenthetical) (Detail) $ in Millions, $ in Millions | Mar. 31, 2021USD ($) | Mar. 31, 2021AUD ($) | Dec. 31, 2020USD ($) | Mar. 31, 2020USD ($) |
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding amount | $ 0.5 | $ 1 | $ 1 | |
Local Currency Borrowing Capacity | ||||
Debt Instrument [Line Items] | ||||
Borrowing capacity | $ 80.6 | |||
Principal outstanding | $ 32.5 |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Detail) | Mar. 31, 2021 | Mar. 31, 2020 |
Debt Disclosure [Abstract] | ||
Weighted average interest rates | 8.61% | 8.15% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Income Tax Contingency [Line Items] | |||
Effective tax rate | 26.70% | 34.30% | |
Unrecognized tax benefits | $ 38.6 | $ 53.5 | $ 39 |
Unrecognized tax benefits that would affect the effective tax rate | $ 10.9 | ||
State Local And Foreign Jurisdiction Tax Authority | |||
Income Tax Contingency [Line Items] | |||
Statute of limitation period | 3 years |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Reconciliation of Numerators and Denominators of Basic and Diluted Earnings per Share Computations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator: | ||
Net income from continuing operations | $ 75,920 | $ 5,748 |
Net loss from discontinued operations | (288) | |
Net income attributable to Enova International, Inc. | $ 75,920 | $ 5,460 |
Denominator: | ||
Total weighted average basic shares | 36,109 | 32,337 |
Shares applicable to stock-based compensation | 1,378 | 496 |
Total weighted average diluted shares | 37,487 | 32,833 |
Earnings per common share – basic: | ||
Continuing operations | $ 2.10 | $ 0.18 |
Discontinued operations | (0.01) | |
Earnings (loss) per common share – basic | 2.10 | 0.17 |
Earnings per common share – diluted: | ||
Continuing operations | 2.03 | 0.18 |
Discontinued operations | (0.01) | |
Earnings (loss) per common share – diluted | $ 2.03 | $ 0.17 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock options not included in computation of diluted earnings per share | 20,945 | 1,757,937 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock options not included in computation of diluted earnings per share | 80,047 | 351,368 |
Operating Segment Information -
Operating Segment Information - Additional Information (Detail) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021USD ($)Segment | Dec. 31, 2020USD ($) | Mar. 31, 2020USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segment | 1 | ||
Number of operating segment | 1 | ||
Property and equipment, net | $ | $ 78,899 | $ 79,417 | $ 56,216 |
Operating Segment Information_2
Operating Segment Information - Summary of Company's Revenue by Geographical Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue [Abstract] | ||
Revenue | $ 259,444 | $ 362,252 |
United States | ||
Revenue [Abstract] | ||
Revenue | 254,866 | 357,716 |
Other International Countries | ||
Revenue [Abstract] | ||
Revenue | $ 4,578 | $ 4,536 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Related Party Transactions [Abstract] | ||
Due from affiliate balance | $ 1.1 | $ 1.2 |
Due to affiliate balance | $ 3 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
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 | |
Maximum | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Cash and cash equivalent maturity period | 90 days | ||
Fair Value, Measurements, Recurring | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Liabilities fair value recurring | $ 0 | 0 | $ 0 |
Fair Value Measurements Nonrecurring | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Liabilities fair value recurring | 0 | 0 | 0 |
Assets fair value non-recurring | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Assets and Liabilities Measured on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Consumer loans and finance receivables | [1],[2] | $ 581,398 | $ 625,219 | $ 917,222 | ||
Small business loans and finance receivables | [1] | 649,313 | [2] | 616,287 | [2] | 175,985 |
Non-qualified savings plan assets | [3] | 4,839 | 3,972 | 2,989 | ||
Investment in trading security | [4] | 17,634 | 19,273 | 9,729 | ||
Total | 1,253,184 | 1,264,751 | 1,105,925 | |||
Level 1 | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Non-qualified savings plan assets | [3] | 4,839 | 3,972 | 2,989 | ||
Investment in trading security | [4] | 17,634 | 19,273 | 9,729 | ||
Total | 22,473 | 23,245 | 12,718 | |||
Level 3 | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Consumer loans and finance receivables | [1],[2] | 581,398 | 625,219 | 917,222 | ||
Small business loans and finance receivables | [1] | 649,313 | [2] | 616,287 | [2] | 175,985 |
Total | $ 1,230,711 | $ 1,241,506 | $ 1,093,207 | |||
[1] | Consumer and small business loans and finance receivables are included in “Loans and finance receivables at fair value” in the consolidated balance sheets. | |||||
[2] | Consumer loans and finance receivables include $213.4 million, $508.3 million and $277.6 million in assets of consolidated VIEs as of March 31, 2021 and 2020 and December 31, 2020, respectively. Small business loans and finance receivables include $135.0 million and $251.3 million in assets of consolidated VIEs as of March 31, 2021 and December 31, 2020, respectively. | |||||
[3] | The non-qualified savings plan assets are included in “Other receivables and prepaid expenses” in the Company’s consolidated balance sheets and have an offsetting liability of equal amount, which is included in “Accounts payable and accrued expenses” in the Company’s consolidated balance sheets. | |||||
[4] | Investment in trading security is included in “Other assets” in the Company’s consolidated balance sheets. |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured on Recurring Basis (Parenthetical) (Detail) - Variable Interest Entity, Primary Beneficiary - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Consumer loans and finance receivables | $ 213.4 | $ 277.6 | $ 508.3 |
Small business loans and finance receivables | $ 135 | $ 251.3 |
Fair Value Measurements - Fin_2
Fair Value Measurements - Financial Assets and Liabilities Not Measured at Fair Value (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | |
Carrying Value | ||||
Financial assets: | ||||
Cash and cash equivalents | $ 324,328 | $ 297,273 | $ 161,076 | |
Restricted cash | [1] | 49,879 | 71,927 | 42,742 |
Investment in unconsolidated investee | [2] | 6,918 | 6,918 | 6,918 |
Total | 381,125 | 376,118 | 210,736 | |
Financial liabilities: | ||||
Revolving line of credit | 102,000 | 105,250 | ||
Securitization notes | 155,035 | 330,632 | 373,864 | |
Other long-term debt | 795 | |||
Total | 882,830 | 955,632 | 1,104,114 | |
Carrying Value | 8.50% Senior Notes Due 2024 | ||||
Financial liabilities: | ||||
Senior notes | 250,000 | 250,000 | 250,000 | |
Carrying Value | 8.50% Senior Notes Due 2025 | ||||
Financial liabilities: | ||||
Senior notes | 375,000 | 375,000 | 375,000 | |
Level 1 | Estimated Fair Value | ||||
Financial assets: | ||||
Cash and cash equivalents | 324,328 | 297,273 | 161,076 | |
Restricted cash | [1] | 49,879 | 71,927 | 42,742 |
Total | 374,207 | 369,200 | 203,818 | |
Level 2 | Estimated Fair Value | ||||
Financial liabilities: | ||||
Securitization notes | 156,584 | 333,532 | 358,465 | |
Total | 803,179 | 948,982 | 890,616 | |
Level 2 | Estimated Fair Value | 8.50% Senior Notes Due 2024 | ||||
Financial liabilities: | ||||
Senior notes | 256,655 | 247,680 | 216,225 | |
Level 2 | Estimated Fair Value | 8.50% Senior Notes Due 2025 | ||||
Financial liabilities: | ||||
Senior notes | 389,940 | 367,770 | 315,926 | |
Level 3 | Estimated Fair Value | ||||
Financial assets: | ||||
Investment in unconsolidated investee | [2] | 6,918 | 6,918 | 6,918 |
Total | 6,918 | $ 6,918 | 6,918 | |
Financial liabilities: | ||||
Revolving line of credit | 102,000 | 105,250 | ||
Other long-term debt | 795 | |||
Total | $ 102,795 | $ 105,250 | ||
[1] | Restricted cash includes $40.3 million, $37.8 million and $64.8 million in assets of consolidated VIEs as of March 31, 2021 and 2020 and December 31, 2020, respectively. | |||
[2] | Investment in unconsolidated investee is included in “Other assets” in the consolidated balance sheets. |
Fair Value Measurements - Fin_3
Fair Value Measurements - Financial Assets and Liabilities Not Measured at Fair Value (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Variable Interest Entity, Primary Beneficiary | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Restricted cash | $ 40.3 | $ 37.8 | $ 64.8 |
8.50% Senior Notes Due 2024 | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Debt instrument, interest rate | 8.50% | 8.50% | 8.50% |
Debt instrument, maturity period | 2024 | 2024 | 2024 |
8.50% Senior Notes Due 2025 | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Debt instrument, interest rate | 8.50% | 8.50% | 8.50% |
Debt instrument, maturity period | 2025 | 2025 | 2025 |