DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 28, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Entity Registrant Name | CURO Group Holdings Corp. | ||
Entity Central Index Key | 0001711291 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Document Type | 10-K/A | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | true | ||
Amendment Description | On March 9, 2020, the SEC stopped accepting the INVEST taxonomy. On the day of our filing, our 10-K included the INVEST taxonomy, resulting in Exhibit 101 containing the XBRL Interactive Data File being omitted from the EDGAR filing. | ||
Entity Common Stock, Shares Outstanding | 40,733,957 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Public Float | $ 193,493,456 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 75,242 | $ 61,175 |
Restricted cash (includes restricted cash of consolidated VIEs of $17,427 and $12,840 as of December 31, 2019 and 2018, respectively) | 34,779 | 25,439 |
Gross loans receivable (includes loans of consolidated VIEs of $244,492 and $148,876 as of December 31, 2019 and 2018, respectively) | 665,828 | 571,531 |
Less: allowance for loan losses (includes allowance for losses of consolidated VIEs of $24,425 and $12,688 as of December 31, 2019 and 2018, respectively) | (106,835) | (73,997) |
Loans receivable, net | 558,993 | 497,534 |
Right of use asset - operating leases (Note 1 and Note 17) | 117,453 | |
Deferred tax assets | 5,055 | 1,534 |
Income taxes receivable | 11,426 | 16,741 |
Prepaid expenses and other | 35,890 | 43,588 |
Property and equipment, net | 70,811 | 76,750 |
Goodwill | 120,609 | 119,281 |
Other intangibles assets, net | 33,927 | 29,784 |
Other | 17,710 | 12,930 |
Assets from discontinued operations (Note 22) | 0 | 34,861 |
Total Assets | 1,081,895 | 919,617 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable and accrued liabilities (includes accounts payable and accrued liabilities of consolidated VIEs of $13,462 and $4,980 as of December 31, 2019 and 2018, respectively) | 60,083 | 49,146 |
Deferred revenue | 10,170 | 9,483 |
Lease liability - operating leases (Note 1 and Note 17) | 124,999 | |
Income taxes payable | 0 | 1,579 |
Accrued interest (includes accrued interest of consolidated VIEs of $871 and $831 as of December 31, 2019 and 2018, respectively) | 19,847 | 20,904 |
Liability for losses on CSO lender-owned consumer loans | 10,623 | 12,007 |
Deferred rent | 0 | 10,851 |
Debt (includes debt and issuance costs of consolidated VIEs of $115,243 and $3,022 and $111,335 and $3,856 as of December 31, 2019 and 2018, respectively) | 790,544 | 804,140 |
Subordinated stockholder debt | 0 | 2,196 |
Other long-term liabilities | 10,664 | 5,800 |
Deferred tax liabilities | 4,452 | 13,730 |
Liabilities from discontinued operations (Note 22) | 0 | 8,882 |
Total Liabilities | 1,031,382 | 938,718 |
Commitments and contingencies (Note 16) | ||
Stockholders' Equity | ||
Preferred stock - $0.001 par value; 25,000,000 shares authorized; no shares were issued | 0 | 0 |
Common stock - $0.001 par value; 225,000,000 shares authorized; 46,770,765 and 46,412,231 shares issued; and 41,156,224 and 46,412,231 shares outstanding at the respective period ends | 9 | 9 |
Treasury stock, at cost - 5,614,541 as of December 31, 2019 | (72,343) | 0 |
Paid-in capital | 68,087 | 60,015 |
Retained earnings (accumulated deficit) | 93,423 | (18,065) |
Accumulated other comprehensive loss | (38,663) | (61,060) |
Total Stockholders' Equity (Deficit) | 50,513 | (19,101) |
Total Liabilities and Stockholders' Equity (Deficit) | $ 1,081,895 | $ 919,617 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Restricted cash | $ 34,779 | $ 25,439 |
Total gross loans receivable | 665,828 | 571,531 |
Allowance for loan losses | 106,835 | 73,997 |
Accounts payable and accrued liabilities | 60,083 | 49,146 |
Accrued interest | 19,847 | 20,904 |
Long-term debt (excluding current maturities) | $ 790,544 | $ 804,140 |
Preferred stock par value (in usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred shares issued (in shares) | 0 | 0 |
Class A common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Class A common stock, authorized (in shares) | 225,000,000 | 225,000,000 |
Class A common stock, issued (in shares) | 46,770,765 | 46,412,231 |
Class A common stock, outstanding (in shares) | 41,156,224 | 46,412,231 |
Treasury stock (in shares) | 5,614,541 | |
Variable Interest Entity | ||
Restricted cash | $ 17,427 | $ 12,840 |
Total gross loans receivable | 244,492 | 148,876 |
Allowance for loan losses | 24,425 | 12,688 |
Accounts payable and accrued liabilities | 13,462 | 4,980 |
Accrued interest | 871 | 831 |
Long-term debt (excluding current maturities) | 115,243 | 111,335 |
Issuance costs | $ 3,022 | $ 3,856 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Revenue | $ 1,141,797 | $ 1,045,073 | $ 924,137 |
Provision for losses | 468,551 | 421,600 | 312,566 |
Net revenue | 673,246 | 623,473 | 611,571 |
Cost of providing services | |||
Salaries and benefits | 108,980 | 106,754 | 104,103 |
Occupancy | 55,987 | 53,684 | 53,568 |
Office | 23,187 | 26,533 | 19,703 |
Other costs of providing services | 53,078 | 51,669 | 52,469 |
Advertising | 53,398 | 59,363 | 46,563 |
Total cost of providing services | 294,630 | 298,003 | 276,406 |
Gross margin | 378,616 | 325,470 | 335,165 |
Operating expense | |||
Corporate, district and other expenses | 160,103 | 132,401 | 137,755 |
Interest expense | 69,763 | 84,382 | 82,696 |
Loss on extinguishment of debt | 0 | 90,569 | 12,458 |
Loss from equity method investment | 6,295 | 0 | 0 |
Total operating expense | 236,161 | 307,352 | 232,909 |
Income from continuing operations before income taxes | 142,455 | 18,118 | 102,256 |
Provision for income taxes | 38,557 | 1,659 | 41,647 |
Net income from continuing operations | 103,898 | 16,459 | 60,609 |
Loss from discontinued operations, before income taxes | (39,048) | (38,682) | (10,527) |
Income tax (benefit) expense related to disposition | (46,638) | (170) | 929 |
Net income (loss) from discontinued operations | 7,590 | (38,512) | (11,456) |
Net income (loss) | $ 111,488 | $ (22,053) | $ 49,153 |
Basic earnings (loss) per share: | |||
Continuing operations (in dollars per share) | $ 2.33 | $ 0.36 | $ 1.58 |
Discontinued operations (in dollars per share) | 0.17 | (0.84) | (0.30) |
Basic earnings per share (in dollars per share) | 2.50 | (0.48) | 1.28 |
Diluted earnings (loss) per share: | |||
Continuing operations (in dollars per share) | 2.26 | 0.34 | 1.54 |
Discontinued operations (in dollars per share) | 0.17 | (0.80) | (0.29) |
Diluted earnings per share (in dollars per share) | $ 2.43 | $ (0.46) | $ 1.25 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 44,685 | 45,815 | 38,351 |
Diluted (in shares) | 45,974 | 47,965 | 39,277 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 111,488 | $ (22,053) | $ 49,153 |
Other comprehensive income (loss): | |||
Cash flow hedges | 0 | ||
Cash flow hedges | 0 | 333 | |
Foreign currency translation adjustment, net of $0 tax in all periods | 22,397 | (18,121) | 16,713 |
Other comprehensive income (loss) | 22,397 | (18,121) | 17,046 |
Comprehensive income (loss) | $ 133,885 | $ (40,174) | $ 66,199 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation adjustment, tax effect | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Common Stock | Paid-in capital | Treasury Stock | Retained Earnings (Deficit) | AOCI | [1] | |
Balance, beginning period at Dec. 31, 2016 | $ 40,855 | $ 1 | $ (35,996) | $ 0 | $ 136,835 | $ (59,985) | ||
Balance, beginning period (in shares) at Dec. 31, 2016 | 37,894,752 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 49,153 | 49,153 | ||||||
Foreign currency translation adjustment | 16,713 | 16,713 | ||||||
Cash flow hedge expiration | 333 | 333 | ||||||
Initial Public Offering, Net Proceeds | 81,117 | $ 7 | 81,110 | |||||
Initial Public Offering, Net Proceeds (in shares) | 6,666,667 | |||||||
Dividends | (182,000) | (182,000) | ||||||
Share based compensation expense | $ 965 | 965 | ||||||
Proceeds from exercise of stock options (in shares) | 0 | |||||||
Balance, ending period at Dec. 31, 2017 | $ 7,136 | $ 8 | 46,079 | 0 | 3,988 | (42,939) | ||
Balance, ending period (in shares) at Dec. 31, 2017 | 44,561,419 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (22,053) | (22,053) | ||||||
Foreign currency translation adjustment | (18,121) | (18,121) | ||||||
Cash flow hedge expiration | 0 | |||||||
Initial Public Offering, Net Proceeds | 7,110 | $ 1 | 7,109 | |||||
Initial Public Offering, Net Proceeds (in shares) | 1,000,000 | |||||||
Share based compensation expense | 8,210 | 8,210 | ||||||
Proceeds from exercise of stock options | $ 559 | 559 | ||||||
Proceeds from exercise of stock options (in shares) | 500,924 | 500,924 | ||||||
Common stock issued for RSU's vesting, net of shares withheld and withholding paid for employee taxes | $ (1,942) | (1,942) | ||||||
Common stock issued for RSU's vesting, net of shares withheld and withholding paid for employee taxes (in shares) | 349,888 | |||||||
Balance, ending period at Dec. 31, 2018 | (19,101) | $ 9 | 60,015 | 0 | (18,065) | (61,060) | ||
Balance, ending period (in shares) at Dec. 31, 2018 | 46,412,231 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 111,488 | 111,488 | ||||||
Foreign currency translation adjustment | 22,397 | 22,397 | ||||||
Share based compensation expense | 10,323 | 10,323 | ||||||
Proceeds from exercise of stock options | $ 149 | 149 | ||||||
Proceeds from exercise of stock options (in shares) | 40,014 | 40,014 | ||||||
Repurchase of common stock | [2] | $ (72,343) | (72,343) | |||||
Repurchase of common stock (in shares) | [2] | (5,614,541) | ||||||
Common stock issued for RSU's vesting, net of shares withheld and withholding paid for employee taxes | (2,400) | (2,400) | ||||||
Common stock issued for RSU's vesting, net of shares withheld and withholding paid for employee taxes (in shares) | 318,520 | |||||||
Balance, ending period at Dec. 31, 2019 | $ 50,513 | $ 9 | $ 68,087 | $ (72,343) | $ 93,423 | $ (38,663) | ||
Balance, ending period (in shares) at Dec. 31, 2019 | 41,156,224 | |||||||
[1] | Accumulated other comprehensive income (loss) | |||||||
[2] | Includes the repurchase of 2,000,000 shares of common stock from FFL for $13.55 per share. See Note 23 - "Share Repurchase Program" for additional information. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - Affiliated Entity - Share Repurchase Agreement with FFL | 1 Months Ended |
Aug. 31, 2019$ / sharesshares | |
Total number of shares repurchased (in shares) | shares | 2,000,000 |
Average price paid per share (in dollars per share) | $ / shares | $ 13.55 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Cash flows from operating activities | |||
Net income from continuing operations | $ 103,898 | $ 16,459 | $ 60,609 |
Adjustments to reconcile net income to net cash provided by continuing operating activities: | |||
Depreciation and amortization | 18,630 | 18,337 | 18,185 |
Provision for losses | 468,551 | 421,600 | 312,566 |
Amortization of debt issuance costs and bond discount | 2,971 | 3,658 | 4,554 |
Deferred income taxes | (6,396) | 2,126 | 9,036 |
Loss on disposal of property and equipment | 85 | 889 | 2,278 |
Loss on extinguishment of debt | 0 | 90,569 | 12,458 |
Loss from equity method investment | 6,295 | 0 | 0 |
Share-based compensation expense | 10,323 | 8,210 | 965 |
Realized loss on cash flow hedge | 0 | 556 | 333 |
Changes in operating assets and liabilities: | |||
Accrued interest on loans receivable | (12,844) | (11,096) | (16,770) |
Prepaid expenses and other assets | 10,771 | (2,578) | (4,574) |
Accounts payable and accrued liabilities | 9,798 | (5,085) | 6,232 |
Deferred revenue | 527 | (1,630) | (682) |
Income taxes payable | 34,102 | 1,636 | 529 |
Income taxes receivable | 9,798 | (13,287) | 2,557 |
Other assets and liabilities | (5,374) | (6,708) | 16,962 |
Net cash provided by continuing operating activities | 651,135 | 523,656 | 425,238 |
Net cash (used in) provided by discontinued operating activities | (504) | 10,808 | 9,666 |
Net cash provided by continuing operating activities | 650,631 | 534,464 | 434,904 |
Cash flows from investing activities | |||
Purchase of property, equipment and software | (13,981) | (14,033) | (8,717) |
Loans receivable originated or acquired | (1,835,301) | (2,136,164) | (2,063,213) |
Loans receivable repaid | 1,327,190 | 1,558,201 | 1,660,440 |
Investments in Cognical Holdings, Inc. (Katapult, formerly known as Zibby) | (8,168) | (958) | (5,600) |
Net cash used in continuing investing activities | (530,260) | (592,954) | (417,090) |
Net cash used in discontinued investing activities | (14,213) | (27,891) | (15,761) |
Net cash used in investing activities | (544,473) | (620,845) | (432,851) |
Cash flows from financing activities | |||
Payments on 12.00% Senior Cash Pay Notes | 0 | 0 | (125,000) |
Payments on subordinated stockholder debt | (2,256) | 0 | 0 |
Debt issuance costs paid | (200) | (18,609) | (18,701) |
Payments of call premiums from early debt extinguishments | 0 | (69,650) | 0 |
Net proceeds from issuance of common stock | 0 | 11,167 | 81,117 |
Payments to net share settle restricted stock units vesting | (2,400) | (1,942) | 0 |
Proceeds from exercise of stock options | 149 | 559 | 0 |
Repurchase of common stock | (71,942) | 0 | 0 |
Dividends paid to stockholders | 0 | 0 | (182,000) |
Net cash (used in) provided by financing activities | (97,968) | 19,092 | (36,691) |
Effect of exchange rate changes on cash and restricted cash | 1,974 | (7,345) | 7,776 |
Net increase (decrease) in cash and restricted cash | 10,164 | (74,634) | (26,862) |
Cash and restricted cash at beginning of period | 99,857 | 174,491 | 201,353 |
Cash and restricted cash at end of period | 110,021 | 99,857 | 174,491 |
Less: Cash and restricted cash of discontinued operations at end of period | 0 | 13,243 | 12,460 |
Cash and restricted cash of continuing operations at end of period | 110,021 | 86,614 | 162,031 |
10.75% Senior Secured Notes | |||
Cash flows from financing activities | |||
Payments on Senior Secured Notes | 0 | 0 | (426,034) |
12.00% Senior Secured Notes | |||
Cash flows from financing activities | |||
Payments on Senior Secured Notes | 0 | (605,000) | 0 |
Proceeds from issuance of Senior Secured Notes | 0 | 0 | 601,054 |
Non-Recourse U.S. SPV Facility and ABL Facility | Line of Credit | |||
Cash flows from financing activities | |||
Proceeds from credit facilities | 0 | 17,000 | 60,130 |
Payments on credit facilities | 0 | (141,590) | (27,257) |
Non-Recourse Canada SPV Facility | Line of Credit | |||
Cash flows from financing activities | |||
Proceeds from credit facilities | 23,558 | 117,157 | 0 |
8.25% Senior Notes Due 2025 | |||
Cash flows from financing activities | |||
Proceeds from issuance of Senior Secured Notes | 0 | 690,000 | 0 |
Revolving Credit Facility | Non-Recourse Canada SPV Facility | |||
Cash flows from financing activities | |||
Payments on credit facilities | (24,877) | 0 | 0 |
Revolving Credit Facility | Senior Revolver | |||
Cash flows from financing activities | |||
Proceeds from credit facilities | 210,346 | 131,902 | 43,084 |
Payments on credit facilities | $ (230,346) | $ (111,902) | $ (43,084) |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) | Dec. 31, 2019 |
8.25% Senior Notes Due 2025 | |
Stated interest rate | 8.25% |
Senior Notes | 10.75% Senior Secured Notes | |
Stated interest rate | 10.75% |
Senior Notes | 12.00% Senior Cash Pay Notes | |
Stated interest rate | 12.00% |
Senior Notes | 12.00% Senior Secured Notes | |
Stated interest rate | 12.00% |
Senior Notes | 8.25% Senior Notes Due 2025 | |
Stated interest rate | 8.25% |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS Nature of Operations and Basis of Presentation The terms “CURO" and the “Company” refer to CURO Group Holdings Corp. and its direct and indirect subsidiaries as a combined entity, except where otherwise stated. The term "CFTC" refers to CURO Financial Technologies Corp., the Company's wholly-owned subsidiary, and its directly and indirectly owned subsidiaries as a consolidated entity, except where otherwise stated. CURO is a growth-oriented, technology-enabled, highly-diversified consumer finance company serving a wide range of underbanked consumers in the United States ("U.S."), Canada and, through February 25, 2019, the U.K. The Company has prepared the accompanying audited Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The Company qualifies as a smaller reporting company ("SRC") as defined by the Securities and Exchange Commission ("SEC"), which allows registrants to report information under scaled disclosure requirements. SRC status is determined on an annual basis as of the last business day of the most recently completed second fiscal quarter. Under these rules, the Company met the definition of an SRC as of June 30, 2019, and it will reevaluate as of June 30, 2020. U.K. Segment Financial Information Recast for Discontinued Operations On February 25, 2019, the Company placed its U.K. segment into administration, which resulted in treatment of the U.K. segment as discontinued operations for all periods presented. Throughout this report, current and prior period financial information is presented on a continuing operations basis, excluding the results and positions of the U.K. segment. See Note 22, "Discontinued Operations" for additional information. For a full recast of the 2018 Annual Report on Form 10-K on a discontinued operations basis, see the Company's Current Report on Form 8-K filed with the SEC on June 28, 2019. Initial Public Offering The Company completed an initial public offering ("IPO") in December 2017. Prior to the IPO, the Company effected a 36 -for-1 split of its common stock. CURO has retroactively adjusted all share and per share data for all periods presented to reflect the stock split as if the stock split had occurred at the beginning of the earliest period presented. See Note 13, "Stockholders' Equity" for additional information concerning the IPO and stock split. Principles of Consolidation The Consolidated Financial Statements include the accounts of CURO, its wholly-owned subsidiaries and Variable Interest Entities ("VIEs") that meet the requirements of consolidation. Intercompany transactions and balances have been eliminated in consolidation. Equity Investment in Unconsolidated Entity As of December 31, 2019, the Company owned a 43.8% investment in Cognical Holdings, Inc. ("Katapult", formerly known as Zibby), a private lease-to-own platform for online, brick and mortar and omni-channel retailers. Katapult provides customers with payment options in store or via the Katapult link on a retailer’s website. Customers approved under Katapult's terms can qualify for leases of merchandise with a purchase price ranging between $300 and $3,500 . Katapult strives to increase retailer sales by providing lease payment options for nonprime customers seeking to purchase furniture, appliances, electronics and other consumer durables. The Company records the equity method investment in "Other" assets on the Consolidated Balance Sheets. During the second and third quarters of 2019, Katapult completed an equity raising round through which the Company increased its investment to 43.8% , resulting in the accounting of the investment under the equity method. This round included additional investments from existing shareholders and investments by new investors and was considered indicative of the fair value of shares in Katapult. As the fair value was below the carrying value, the Company recognized a $3.7 million loss to adjust the Company's carrying value of Katapult. The carrying value was further reduced by $2.5 million , which represents the Company's pro rata share of Katapult's losses during the period in which the Company accounted for its investment in Katapult under the equity method of accounting. The Company holds immaterial warrants, subject to vesting restrictions, to purchase the common stock of Katapult and has also guaranteed to pay $5.5 million of certain notes, held by Katapult, to a third-party lender in the event of default by Katapult. See Note 12 - "Fair Value Measurements" for additional detail on Katapult's fair value considerations for the year ended December 31, 2019. Use of Estimates The preparation of Consolidated Financial Statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of revenues and expenses during the periods reported. Some of the significant estimates that the Company has made in the accompanying Consolidated Financial Statements include allowances for loan losses, certain assumptions related to goodwill and intangibles, accruals related to self-insurance, Credit Services Organization ("CSO") liability for losses and estimated tax liabilities. Actual results may differ from those estimates. Revenue Recognition CURO offers a broad range of consumer finance products including Unsecured Installment, Secured Installment, Open-End and Single-Pay loans. Revenue in the Consolidated Statements of Operations includes: interest income, finance charges, CSO fees, late fees, non-sufficient funds fees and other ancillary fees as permitted by applicable laws and pursuant to the customer agreements. Product offerings differ by jurisdiction and are governed by the laws in each separate jurisdiction. Installment loans include Secured Installment loans and Unsecured Installment loans. These loans are fully amortizing, with a fixed payment amount, which includes principal and accrued interest, due each period during the loan term. The loan terms for Installment loans can range up to 60 months depending on state or provincial regulations. The Company records revenue from Installment loans on a simple-interest basis. Accrued interest and fees are included in gross loans receivable in the Consolidated Balance Sheets as earned. CSO fees are recognized ratably over the term of the loan as earned. Open-End loans function much like a revolving line-of-credit, whereby the periodic payment is a fixed percentage of the customer’s outstanding loan balance, and there is no defined loan term. The Company records revenue from Open-End loans on a simple-interest basis. Accrued interest and fees are included in gross loans receivable in the Consolidated Balance Sheets. Single-Pay loans are primarily unsecured, short-term, small denomination loans, with a small portion being auto title loans, which allow a customer to obtain a loan using their car as collateral. Revenues from Single-Pay loan products are recognized each period on a constant-yield basis ratably over the term of each loan as earned. The Company defers recognition of the unearned fees the Company expects to collect based on the remaining term of the loan at the end of each reporting period. Check cashing fees, money order fees and other fees from ancillary products and services are generally recognized at the point-of-sale when the transaction is completed. The Company also earns revenue from the sale of credit protection insurance in the Canadian market, which are recognized ratably over the term of the loan. Cash and cash equivalents The Company considers deposits in banks and short-term investments with original maturities of 90 days or less as cash and cash equivalents. Restricted Cash The Company's restricted cash includes deposits in collateral accounts with financial institutions, consumer deposits related to prepaid cards and checking account programs, and funds related to loan facilities disclosed in Note 5, "Variable Interest Entities" . The following table provides a reconciliation of cash and restricted cash to amounts reported within the Consolidated Balance Sheets (in thousands): December 31, 2019 2018 2017 Cash and cash equivalents $ 75,242 $ 61,175 $ 153,483 Restricted cash (includes restricted cash of consolidated VIEs of $17,427 and $12,840 as of December 31, 2019 and 2018, respectively) 34,779 25,439 8,548 Total cash, cash equivalents and restricted cash from continuing operations 110,021 86,614 162,031 Cash and restricted cash from discontinued operations — 13,243 12,460 Total cash, cash equivalents and restricted cash used in the Statements of Cash Flows $ 110,021 $ 99,857 $ 174,491 Consumer Loans Receivable Consumer loans receivable are net of the allowance for loan losses and are comprised of Unsecured Installment, Secured Installment, Open-End and Single-Pay loans. Single-Pay loans are primarily comprised of payday loans and auto title loans. A payday loan transaction consists of providing a customer cash in exchange for the customer’s personal check or Automated Clearing House (“ACH”) authorization (in the aggregate amount of that cash plus a service fee), with an agreement to defer the presentment or deposit of that check or scheduled ACH withdrawal until the customer’s next payday, which is typically either two weeks or a month from the loan’s origination date. An auto title loan allows a customer to obtain a loan using the customer’s car as collateral for the loan, with a typical loan term of 30 days. Unsecured Installment, Secured Installment and Open-End loans require periodic payments of principal and interest. Installment loans are fully amortized loans with a fixed payment amount due each period during the term of the loan. Open-End loans function much like a revolving line-of-credit, whereby the periodic payment is a set percentage of the customer’s outstanding loan balance, and there is no defined loan term. The loan terms for Installment loans can range up to 60 months, depending on state regulations. Installment and Open-End loans are offered as both Secured auto title loans and as Unsecured loan products. The product offerings differ by jurisdiction and are governed by the laws in each separate jurisdiction. Current and Past-Due Loans Receivable CURO classifies loans receivable as either current or past-due. Single-Pay loans are considered past-due if a customer misses a scheduled payment, at which point the loan is charged-off to the allowance for loan losses. If a customer misses a scheduled payment for Installment and Open-End loans, the entire customer balance is classified as past-due. Installment and Open-End loans are charged-off when the loan has been contractually past-due for 90 consecutive days. All Unsecured and Secured Installment loans were impacted by a change in accounting estimate in the first quarter of 2017, while Open-End loans were impacted by the Q1 2019 Open-End Loss Recognition. These changes in accounting estimates are discussed immediately below. Q1 2019 Open-End Loss Recognition Change Effective January 1, 2019, the Company modified the timeframe over which it charges-off Open-End loans and made related refinements to its loss provisioning methodology. Prior to January 1, 2019, the Company deemed Open-End loans uncollectible and charged-off when a customer missed a scheduled payment and the loan was considered past-due. Because of the continued shift to Open-End loans in Canada and analysis of payment patterns on early-stage versus late-stage delinquencies, the Company revised its estimates and now consider Open-End loans uncollectible when the loan has been contractually past-due for 90 consecutive days. Consequently, past-due Open-End loans and related accrued interest now remain in loans receivable for 90 days before being charged off against the allowance for loan losses. All recoveries on charged-off loans are credited to the allowance for loan losses. Quarterly, the Company evaluates the adequacy of the allowance for loan losses compared to the related gross loans receivable balances that include accrued interest. The aforementioned change was treated as a change in accounting estimate for accounting purposes and applied prospectively beginning January 1, 2019, which the Company refers to throughout this Annual Report as the "Q1 2019 Open-End Loss Recognition Change". The change affects comparability to prior periods as follows: • Gross combined loans receivable : balances as of December 31, 2019 include $50.1 million of Open-End loans that are up to 90 days past-due with related accrued interest, while such balances for periods prior to March 31, 2019 do not include any past-due loans. • Revenues : for the year ended December 31, 2019, gross revenues include interest earned on past-due loan balances of approximately $49 million , while revenues in prior-year periods do not include comparable amounts. • Provision for Losses : prospectively from January 1, 2019, past-due, unpaid balances plus related accrued interest charge-off on day 91. Provision for losses is affected by NCOs (total charge-offs less total recoveries) plus changes to the Allowance for loan losses. Because NCOs prospectively include unpaid principal and up to 90 days of related accrued interest, NCO amounts and rates are higher and the Open-End Allowance for loan losses as a percentage of Open-End gross loans receivable is higher. The Open-End Allowance for loan losses as a percentage of Open-End gross loans receivable increased to 16.4% at December 31, 2019, compared to 9.6% at December 31, 2018. For Single-Pay loans, past-due loans are charged-off upon payment default and typically do not return to current for any subsequent payment activity. For Installment and Open-End loans, customers with payment delinquency of 90 consecutive days are charged off. Charged-off loans are never returned to current or performing and all subsequent activity is accounted for within recoveries in the Allowance for loan losses. If a past-due Installment loan customer makes payments sufficient to bring the account current for principal plus all accrued interest or fees pursuant to the original terms of the loan contract before becoming 90 consecutive days past-due, the underlying loan balance returns to current classification. Depending upon underlying state or provincial regulations, a borrower may be eligible for more than one outstanding loan. Allowance for Loan Losses The Company maintains an allowance for loan losses for loans and interest receivable at a level estimated to be adequate to absorb incurred losses based primarily on the Company's analysis of historical loss or charge-off rates for loans containing similar risk characteristics. The allowance for loan losses on the Company-Owned gross loans receivables reduces the outstanding gross loans receivables balance in the Consolidated Balance Sheets. The liability for estimated losses related to loans Guaranteed by the Company under CSO programs is reported in “Liability for losses on CSO lender-owned consumer loans” in the Consolidated Balance Sheets. Changes in either the allowance or the liability, net of charge-offs and recoveries, are recorded as “Provision for losses” in the Consolidated Statements of Operations. In addition to an analysis of historical loss and charge-off rates, the Company also considers delinquency trends and any macro-economic conditions that it believes may affect portfolio losses. If a loan is deemed to be uncollectible before it is fully reserved based on received information (e.g., receipt of customer bankruptcy notice or death), the Company charges off such loan at that time. Qualitative factors such as the impact of new loan products, changes to underwriting criteria or lending policies, new store development or entrance into new markets, changes in jurisdictional regulations or laws, recent credit trends and general economic conditions impact management’s judgment on the overall adequacy of the allowance for loan losses. Any recoveries on loans previously charged to the allowance are credited to the allowance when collected. Additionally, during the year ended December 31, 2018, the Company changed the estimated allowance for loan losses for Installment gross combined loans receivable. This was a prospective change in estimate affected by a change in accounting principle. Prior to the change in the estimate, the Company utilized historic collection experience by grouping accounts receivable aging for these products to assess losses inherent in the portfolio and incurred as of the balance sheet date. Given that the Company now has history on performance subsequent to the Q1 2017 Loss Recognition Change, the Company refined the estimation process to utilize charge-off and recovery rates and estimate losses inherent in the portfolio. Credit Services Organization Through the CSO programs, the Company acts as a CSO/credit access business ("CAB") on behalf of customers in accordance with applicable state laws. The Company currently offers loans through CSO programs in stores and online in the state of Texas. As a CSO, CURO earns revenue by charging the customer a fee ("CSO fee") for arranging an unrelated third-party to make a loan to that customer. When a customer executes an agreement with CURO under the CSO programs, the Company agrees, for a CSO fee payable to the Company by the customer, to provide certain services to the customer, one of which is to guarantee the customer’s obligation to repay the loan to the third-party lender. CSO fees are calculated based on the amount of the customer's outstanding loan. For CSO loans, each lender is responsible for providing the criteria by which the customer’s application is underwritten and, if approved, determining the amount of the customer loan. The Company is, in turn, responsible for assessing whether or not to guarantee the loan. This guarantee represents an obligation to purchase specific loans if they go in to default. Prior to May 2019, the Company operated as a CSO in Ohio. In July 2018, the Ohio legislature passed House Bill 123 which significantly limited permissible fees and other terms on short term loans in Ohio. As a result, the Company stopped operating as a CSO in Ohio in April 2019. CURO currently has relationships with three unaffiliated third-party lenders for CSO programs. The Company periodically evaluates the competitive terms of the unaffiliated third-party lender contracts and such evaluation may result in the transfer of volume and loan balances between lenders. The process does not require significant effort or resources outside the normal course of business and the Company believes the incremental cost of changing or acquiring new unaffiliated third-party lender relationships to be immaterial. As of December 31, 2019 , the maximum amount guaranteed by the Company under CSO programs was $62.7 million , compared to $66.9 million at December 31, 2018 . Should the Company be required to purchase any portion of the total amount of the loans guaranteed, the Company will attempt to recover some or all of the entire amount from the customers. CURO holds no collateral in respect of the guarantees. CURO estimates a liability for losses associated with the guaranty provided to the CSO lenders using assumptions and methodologies similar to the allowance for loan losses, which is recognized for the consumer loans. The liability for incurred losses on CSO loans guaranteed by the Company was $10.6 million and $12.0 million at December 31, 2019 and 2018 , respectively. CSO fees are calculated based on the amount of the customer’s outstanding loan. The Company complies with the applicable jurisdiction’s Credit Services Organization Act or a similar statue. These laws generally define the services that CURO can provide to consumers and require the Company to provide a contract to the customer outlining its services and related costs. For services provided under the CSO programs, the Company receives payments from customers on their scheduled loan repayment due dates. The CSO fee is earned ratably over the term of the loan as the customers make payments. If a loan is paid off early, no additional CSO fees are due or collected. The maximum CSO loan term is 180 days. During the years ended December 31, 2019 , 2018 and 2017, approximately 58.2% , 57.3% and 53.6% , respectively, of Unsecured Installment loans, and 54.3% , 54.5% and 53.6% , respectively, of Secured Installment loans originated under CSO programs were paid off prior to the original maturity date. The Company placed $6.2 million and $17.2 million in collateral accounts for the benefit of lenders at December 31, 2019 and December 31, 2018 , respectively, which is reflected in "Prepaid expenses and other" in the Consolidated Balance Sheets. The balances required to be maintained in these collateral accounts vary by lender, typically based on a percentage of the outstanding loan balances held by the lender. The percentage of outstanding loan balances required for collateral is negotiated between the Company and each such lender. Since CSO loans are made by a third-party lender, they are not included in the Company's Consolidated Balance Sheets as loans receivable. CSO fees receivable are included in “Prepaid expense and other” in the Consolidated Balance Sheets. The Company receives cash from customers for these fees on their scheduled loan repayment due dates. Income Taxes The Company utilizes the asset and liability method of accounting for income taxes as set forth in ASC 740. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. In determining the need for valuation allowances, the Company considers projected future taxable income and the availability of tax planning strategies. If in the future the Company determines that it would not be able to realize the recorded deferred tax assets, an increase in the valuation allowance would be recorded, decreasing earnings in the period in which such determination is made. The Company is subject to income taxes throughout the U.S. and Canada and, prior to deconsolidation of the U.K. subsidiaries, in the U.K. The Company recognizes the financial statement benefits for uncertain tax positions as set forth in ASC 740 only if it is more-likely-than-not to be sustained in the event of challenges by relevant taxing authorities based on the technical merit of each tax position. The amounts of uncertain tax positions recognized are the largest benefits that have a greater than 50 percent likelihood of being realized upon settlement with the relevant tax authorities. Variable Interest Entity As part of the Company's funding strategy and efforts to support the liquidity from sources other than the traditional capital market sources, the Company established a securitization program through Non-Recourse U.S. and Canada SPV Facilities. The Company entered into the Non-Recourse Canada SPV Facility during the third quarter of 2018 and fully extinguished the Non-Recourse U.S. SPV Facility during the fourth quarter of 2018. The Company transferred certain consumer loan receivables to a wholly-owned, bankruptcy-remote special purpose subsidiary (“VIE”) that issues term notes backed by the underlying consumer loan receivables which are serviced by another wholly-owned subsidiary. The Company has the ability to direct the activities of the VIE that most significantly impact the economic performance of the entities as the servicer of the securitized loan receivables. Additionally, CURO has the right to receive residual payments, which exposes the Company to the potential for significant losses and returns. Accordingly, the Company determined that they are the primary beneficiary of the VIE and are required to consolidate them. See Note 5, "Variable Interest Entities" for further discussion of the Company's VIEs. Derivatives As foreign currency exchange rates change, translation of the financial results of the Canadian operations into U.S. Dollars will be impacted. Operations in Canada represent a significant portion of total operations, and as a result, material changes in the currency exchange rates as between these two countries could have a significant impact on the Company's consolidated financial condition, results of operations or cash flows. From time-to-time, the Company may elect to purchase derivatives to hedge exposures that would qualify as a cash flow or fair value hedge. All other derivatives that are entered into for economic reasons are carried at fair value with the resulting change in fair value recorded the results of operations. As of December 31, 2019 and 2018, the Company had $112.2 million and $107.5 million , respectively, in variable interest rate debt outstanding related to the Non-Recourse Canada SPV Facility. In August 2018, the Company entered into a four -year C$175.0 million interest rate cap agreement with the Royal Bank of Canada that capped the related three-month CDOR rate at 4.50% beginning in September 2018. During the year ended December 31, 2019 and 2018, the three-month CDOR rate did not exceed 4.50% and did not have any impact on the Company's Statement of Operations. The Company records derivative instruments at fair value as either an asset or liability on the Consolidated Balance Sheet. Changes in the options intrinsic value, to the extent that they are effective as a hedge, are recorded in Other Comprehensive Income (Loss). For derivatives that qualify and have been designated as cash flow or fair value hedges for accounting purposes, the changes in fair value have no net impact on earnings, to the extent the derivative is considered perfectly effective in achieving offsetting changes in fair value or cash flows attributable to the risk being hedged, until the hedged item is recognized in earnings (commonly referred to as the “hedge accounting” method). Property and Equipment Property and equipment is carried at cost less accumulated depreciation and amortization, except for property and equipment accounted for as part of a business combination, which is carried at fair value as of the acquisition date less accumulated depreciation and amortization. Expenditures for significant additions and improvements are capitalized. Maintenance repairs and renewals, that do not materially add to the fixed asset's value or appreciably prolong its life, are charged to expense as incurred. Gains and losses on dispositions of property and equipment are included in results of operations. The estimated useful lives for furniture, fixtures and equipment are five to seven years. The estimated useful lives for leasehold improvements are the shorter of the estimated useful life of the asset, or the term of the lease, and can vary from one year to 15 years. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the depreciable or amortizable assets. Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination at the time of acquisition. In accordance with Accounting Standards Codification ("ASC") 350 Intangibles - Goodwill and Other ("ASC 350"), the Company performs impairment testing for goodwill and indefinite-lived intangible assets annually, as of October 1st, or whenever indicators of impairment exist. An impairment would occur if the carrying amount of a reporting unit exceeded the fair value of that reporting unit. These events or circumstances could include a significant change in the business climate, a change in strategic direction, legal factors, operating performance indicators, a change in the competitive environment, the sale or disposition of a significant portion of a reporting unit or economic outlook. The Company did not record any impairment losses on goodwill from continuing operations during the years ended December 31, 2019, 2018 and 2017. Goodwill The annual impairment review for goodwill consists of performing a qualitative assessment to determine whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount as a basis for determining whether or not further testing is required. The Company may elect to bypass the qualitative assessment and proceed directly to the two-step process, for any reporting unit, in any period. The Company can resume the qualitative assessment for any reporting unit in any subsequent period. If the Company determines, on the basis of qualitative factors, that it is more likely than not that the fair value of the reporting unit is less than the carrying amount, the Company will then apply a two-step process of (i) determining the fair value of the reporting unit and (ii) comparing it to the carrying value of the net assets allocated to the reporting unit. When performing the two-step process, if the fair value of the reporting unit exceeds it carrying value, no further analysis or write-down of goodwill is required. In the event the estimated fair value of a reporting unit is less than the carrying value, the Company would recognize an impairment loss equal to such excess, which could significantly and adversely impact reported results of operations and stockholders’ equity. During the fourth quarter of 2019, the Company performed a quantitative assessment for the U.S. and Canada reporting units. Management concluded that the estimated fair values of these two reporting units were greater than their respective carrying values. As such, no further analysis was required for these reporting units. Refer to Note 4, "Goodwill and Intangibles" for further information. During the fourth quarter of 2018, the Company performed the qualitative assessment for the U.S. and Canada reporting units. Management concluded that the estimated fair values of these two reporting units were greater than their respective carrying values. As such, no further analysis was required for these reporting units. Other Intangible Assets The Company's identifiable intangible assets, resulting from business combinations and internally developed capitalized software, consist of trade names, customer relationships and computer software. The Company applied the guidance under ASC 350, to software that is purchased or internally developed. Under ASC 350, eligible internal and external costs incurred for the development of computer software applications, as well as for upgrades and enhancements that result in additional functionality of the applications, are capitalized to "Other Intangible Assets, net of accumulated amortization" in the Consolidated Balance Sheets. Internal and external training and maintenance costs are charged to expense as incurred or over the related service period. When a software application is placed in service, the Company begins amortizing the related capitalized software costs using the straight-line method over its estimated useful life, which ranges from three to 10 years. The “Cash Money” trade name was determined to be an intangible asset with an indefinite life. Intangible assets with indefinite lives are not amortized, but instead are tested annually for impairment and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset might not be recoverable. Impairment of identifiable intangible assets with indefinite lives occurs when the fair value of the asset is less than its carrying amount. If deemed impaired, the asset’s carrying amount is reduced to its estimated fair value. No intangible impairments were recorded during the years ended December 31, 2019, 2018 or 2017. See Note 4, "Goodwill and Intangibles" for further information. The Company's finite lived intangible assets are amortized over their estimated economic benefit period, generally from three to 10 years. The Company reviews the intangible assets for impairment annually in the fourth quarter or whenever events or changes in circumstances have indicated that the carrying amoun |
PREPAID EXPENSES AND OTHER
PREPAID EXPENSES AND OTHER | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER | PREPAID EXPENSES AND OTHER Components of Prepaid expenses and other assets were as follows (in thousands): December 31, 2019 December 31, 2018 Settlements and collateral due from third-party lenders $ 6,156 $ 17,205 Fees receivable from customers under CSO programs 14,564 13,771 Prepaid expenses 4,546 6,456 Other assets 10,624 6,156 Total prepaid expenses and other $ 35,890 $ 43,588 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT The classification of property and equipment was as follows (in thousands): December 31, 2019 December 31, 2018 Leasehold improvements $ 134,574 $ 126,903 Furniture, fixtures and equipment 37,726 34,896 Property and equipment, gross 172,300 161,799 Accumulated depreciation and amortization (101,489 ) (85,049 ) Property and equipment, net $ 70,811 $ 76,750 Depreciation expense for continuing operations was $15.8 million , $15.6 million and $16.1 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. |
GOODWILL AND INTANGIBLES
GOODWILL AND INTANGIBLES | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLES | GOODWILL AND INTANGIBLES The Goodwill balance includes no accumulated impairment. The change in the carrying amount of Goodwill by operating segment for the years ended December 31, 2019 and 2018 was as follows (in thousands): U.S. Canada Total Goodwill at December 31, 2017 $ 91,131 $ 30,516 $ 121,647 Foreign currency translation - 2018 — (2,366 ) (2,366 ) Goodwill at December 31, 2018 91,131 28,150 119,281 Foreign currency translation - 2019 — 1,328 1,328 Goodwill at December 31, 2019 91,131 29,478 120,609 The Company tests goodwill at least annually for impairment (the Company has elected to annually test for potential impairment of goodwill on the first day of the fourth quarter) and more frequently if indicators are present or changes in circumstances suggest that impairment may exist. The indicators include, among others, declines in sales, earning or cash flows or the development of a material adverse change in business climate. The Company assesses goodwill for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment, referred to as a reporting unit. See Note 1, "Summary of Significant Accounting Policies and Nature of Operations" for additional detail on the Company's policy for assessing goodwill for impairment. Identifiable intangible assets consisted of the following: December 31, 2019 December 31, 2018 Weighted-Average Remaining Life (Years) Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Assets not subject to amortization Trade name — $ 22,357 $ — $ 22,357 $ 21,350 $ — $ 21,350 Assets subject to amortization Customer relationships — 8,982 (8,982 ) — 18,299 (17,643 ) 656 Computer software 9.2 26,328 (14,758 ) 11,570 24,051 (16,273 ) 7,778 Balance, end of year $ 57,667 $ (23,740 ) $ 33,927 $ 63,700 $ (33,916 ) $ 29,784 The Company's identifiable intangible assets are amortized using the straight-line method over the estimated remaining useful lives, except for the Cash Money trade name intangible asset that has a carrying amount of $22.4 million , which was determined to have an indefinite life and is not amortized. The estimated useful lives for the Company's other intangible assets range from 1 to 10 years. Aggregate amortization expense related to identifiable intangible assets was $2.9 million , $2.7 million and $2.4 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The following table outlines the estimated future amortization expense related to intangible assets held at December 31, 2019 for each of the following five fiscal years (in thousands): Year Ending December 31, 2020 $ 2,065 2021 1,508 2022 838 2023 519 2024 519 |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES In August 2018, the Company closed a second financing facility, the Non-Recourse Canada SPV facility, whereby certain loan receivables were sold to wholly-owned VIEs and additional debt was incurred through the ABL facility and the Non-Recourse Canada SPV facility that was collateralized by these underlying loan receivables (see Note 9, "Debt" for further discussion). The Company has determined that they are the primary beneficiary of the VIEs and are required to consolidate them. The Company includes the assets and liabilities related to the VIEs in the Consolidated Financial Statements. As required, CURO parenthetically discloses on the Consolidated Balance Sheets the VIEs’ assets that can only be used to settle the VIEs' obligations and liabilities if the VIEs’ creditors have no recourse against the Company's general credit. The carrying amounts of consolidated VIEs' assets and liabilities associated with the Company's special purpose subsidiaries were as follows (in thousands): December 31, 2019 December 31, 2018 Assets Restricted cash $ 17,427 $ 12,840 Loans receivable less allowance for loan losses 220,067 136,187 Total Assets $ 237,494 $ 149,027 Liabilities Accounts payable and accrued liabilities $ 13,462 $ 4,980 Deferred revenue 46 40 Accrued interest 871 831 Intercompany payable 69,639 44,330 Debt 112,221 107,479 Total Liabilities $ 196,239 $ 157,660 |
LOANS RECEIVABLE AND REVENUE
LOANS RECEIVABLE AND REVENUE | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
LOANS RECEIVABLE AND REVENUE | LOANS RECEIVABLE AND REVENUE Unsecured and Secured Installment revenue includes interest income and non-sufficient-funds or returned-items fees on late or defaulted payments on past-due loans (collectively, “late fees”). Late fees comprise less than 1.0% of Installment revenues. Open-End revenues include interest income on outstanding revolving balances and other usage or maintenance fees as permitted by underlying statutes. Single-Pay revenues represent deferred presentment or other fees as defined by the underlying state, provincial or national regulations. The following table summarizes revenue by product (in thousands): Year Ended December 31, 2019 2018 2017 Unsecured Installment $ 530,730 $ 523,282 $ 454,758 Secured Installment 110,513 110,677 100,981 Open-End 245,256 141,963 73,496 Single-Pay 191,449 218,992 255,170 Ancillary 63,849 50,159 39,732 Total revenue (1) $ 1,141,797 $ 1,045,073 $ 924,137 (1) Includes revenue from CSO programs of $281.6 million, $283.0 million and $256.1 million for the years ended December 31, 2019, 2018 and 2017, respectively. The following tables summarize loans receivable by product and the related delinquent loans receivable (in thousands): December 31, 2019 Single-Pay (1) Unsecured Installment Secured Installment Open-End Total Current loans receivable $ 81,447 $ 117,682 $ 70,565 $ 285,452 $ 555,146 Delinquent loans receivable — 43,100 17,510 50,072 110,682 Total loans receivable 81,447 160,782 88,075 335,524 665,828 Less: allowance for losses (5,869 ) (35,587 ) (10,305 ) (55,074 ) (106,835 ) Loans receivable, net $ 75,578 $ 125,195 $ 77,770 $ 280,450 $ 558,993 (1) Of the $81.4 million of Single-Pay receivables, $22.4 million relate to mandated extended payment options for certain Canada Single-Pay loans. December 31, 2019 Unsecured Installment Secured Installment Open-End Total Delinquent loans receivable 0-30 days past-due $ 15,369 $ 8,039 $ 21,823 $ 45,231 31-60 days past-due 12,403 4,885 13,191 30,479 61 + days past-due 15,328 4,586 15,058 34,972 Total delinquent loans receivable $ 43,100 $ 17,510 $ 50,072 $ 110,682 December 31, 2018 Single-Pay (1) Unsecured Installment Secured Installment Open-End Total Current loans receivable $ 80,823 $ 141,318 $ 75,583 $ 207,333 $ 505,057 Delinquent loans receivable — 49,085 17,389 — 66,474 Total loans receivable 80,823 190,403 92,972 207,333 571,531 Less: allowance for losses (4,189 ) (37,716 ) (12,191 ) (19,901 ) (73,997 ) Loans receivable, net $ 76,634 $ 152,687 $ 80,781 $ 187,432 $ 497,534 (1) Of the $80.8 million of Single-Pay receivables, $23.7 million relate to mandated extended payment options for certain Canada Single-Pay loans. December 31, 2018 Unsecured Installment Secured Installment Total Delinquent loans receivable 0-30 days past-due $ 17,848 $ 7,870 $ 25,718 31-60 days past-due 14,705 4,725 19,430 61 + days past-due 16,532 4,794 21,326 Total delinquent loans receivable $ 49,085 $ 17,389 $ 66,474 The following tables summarize loans guaranteed by the Company under CSO programs and the related delinquent receivables (in thousands): December 31, 2019 Unsecured Installment Secured Installment Total Current loans receivable guaranteed by the Company $ 61,840 $ 1,944 $ 63,784 Delinquent loans receivable guaranteed by the Company 12,477 392 12,869 Total loans receivable guaranteed by the Company 74,317 2,336 76,653 Less: Liability for losses on CSO lender-owned consumer loans (10,553 ) (70 ) (10,623 ) Loans receivable guaranteed by the Company, net $ 63,764 $ 2,266 $ 66,030 December 31, 2019 Unsecured Installment Secured Installment Total Delinquent loans receivable 0-30 days past-due $ 10,392 $ 326 $ 10,718 31-60 days past-due 1,256 40 1,296 61 + days past-due 829 26 855 Total delinquent loans receivable $ 12,477 $ 392 $ 12,869 December 31, 2018 Unsecured Installment Secured Installment Total Current loans receivable guaranteed by the Company $ 65,743 $ 2,504 $ 68,247 Delinquent loans receivable guaranteed by the Company 11,708 446 12,154 Total loans receivable guaranteed by the Company 77,451 2,950 80,401 Less: Liability for losses on CSO lender-owned consumer loans (11,582 ) (425 ) (12,007 ) Loans receivable guaranteed by the Company, net $ 65,869 $ 2,525 $ 68,394 December 31, 2018 Unsecured Installment Secured Installment Total Delinquent loans receivable 0-30 days past-due $ 9,684 $ 369 $ 10,053 31-60 days past-due 1,255 48 1,303 61 + days past-due 769 29 798 Total delinquent loans receivable $ 11,708 $ 446 $ 12,154 The following table summarizes activity in the allowance for loan losses (dollars in thousands): Year Ended December 31, 2019 Single-Pay Unsecured Installment Secured Installment Open-End Other Total Balance, beginning of period $ 4,189 $ 37,716 $ 12,191 $ 19,901 $ — $ 73,997 Charge-offs (155,250 ) (158,251 ) (47,195 ) (108,319 ) (5,445 ) (474,460 ) Recoveries 109,124 23,660 10,744 19,061 3,284 165,873 Net charge-offs (46,126 ) (134,591 ) (36,451 ) (89,258 ) (2,161 ) (308,587 ) Provision for losses 47,739 132,433 34,565 123,726 2,161 340,624 Effect of foreign currency translation 67 29 — 705 — 801 Balance, end of period $ 5,869 $ 35,587 $ 10,305 $ 55,074 $ — $ 106,835 Allowance for loan losses as a percentage of gross loan receivables 7.2 % 22.1 % 11.7 % 16.4 % N/A 16.0 % The following table summarizes activity in the liability for losses on CSO lender-owned consumer loans (in thousands): Year Ended December 31, 2019 Unsecured Installment Secured Installment Total Balance, beginning of period $ 11,582 $ 425 $ 12,007 Charge-offs (161,557 ) (3,610 ) (165,167 ) Recoveries 33,248 2,608 35,856 Net charge-offs (128,309 ) (1,002 ) (129,311 ) Provision for losses 127,280 647 127,927 Balance, end of period $ 10,553 $ 70 $ 10,623 The following table summarizes activity in the allowance for loan losses and the liability for losses on CSO lender-owned consumer loans, in total (in thousands): Year Ended December 31, 2019 Single-Pay Unsecured Installment Secured Installment Open-End Other Total Balance, beginning of period $ 4,189 $ 49,298 $ 12,616 $ 19,901 $ — $ 86,004 Charge-offs (155,250 ) (319,808 ) (50,805 ) (108,319 ) (5,445 ) (639,627 ) Recoveries 109,124 56,908 13,352 19,061 3,284 201,729 Net charge-offs (46,126 ) (262,900 ) (37,453 ) (89,258 ) (2,161 ) (437,898 ) Provision for losses 47,739 259,713 35,212 123,726 2,161 468,551 Effect of foreign currency translation 67 29 — 705 — 801 Balance, end of period $ 5,869 $ 46,140 $ 10,375 $ 55,074 $ — $ 117,458 The following table summarizes activity in the allowance for loan losses (dollars in thousands): Year Ended December 31, 2018 Single-Pay Unsecured Installment Secured Installment Open-End Other Total Balance, beginning of period $ 5,204 $ 39,025 $ 13,472 $ 6,426 $ — $ 64,127 Charge-offs (164,342 ) (141,963 ) (46,996 ) (113,150 ) (5,913 ) (472,364 ) Recoveries 115,118 20,175 10,041 41,457 3,603 190,394 Net charge-offs (49,224 ) (121,788 ) (36,955 ) (71,693 ) (2,310 ) (281,970 ) Provision for losses 48,575 120,469 35,674 86,299 2,310 293,327 Effect of foreign currency translation (366 ) 10 — (1,131 ) — (1,487 ) Balance, end of period $ 4,189 $ 37,716 $ 12,191 $ 19,901 $ — $ 73,997 Allowance for loan losses as a percentage of gross loan receivables 5.2 % 19.8 % 13.1 % 9.6 % N/A 12.9 % The following table summarizes activity in the liability for losses on CSO lender-owned consumer loans (in thousands): Year Ended December 31, 2018 Unsecured Installment Secured Installment Total Balance, beginning of period $ 17,073 $ 722 $ 17,795 Charge-offs (165,266 ) (4,469 ) (169,735 ) Recoveries 32,341 3,333 35,674 Net charge-offs (132,925 ) (1,136 ) (134,061 ) Provision for losses 127,434 839 128,273 Balance, end of period $ 11,582 $ 425 $ 12,007 The following table summarizes activity in the allowance for loan losses and the liability for losses on CSO lender-owned consumer loans, in total (in thousands): Year Ended December 31, 2018 Single-Pay Unsecured Installment Secured Installment Open-End Other Total Balance, beginning of period $ 5,204 $ 56,098 $ 14,194 $ 6,426 $ — $ 81,922 Charge-offs (164,342 ) (307,229 ) (51,465 ) (113,150 ) (5,913 ) (642,099 ) Recoveries 115,118 52,516 13,374 41,457 3,603 226,068 Net charge-offs (49,224 ) (254,713 ) (38,091 ) (71,693 ) (2,310 ) (416,031 ) Provision for losses 48,575 247,903 36,513 86,299 2,310 421,600 Effect of foreign currency translation (366 ) 10 — (1,131 ) — (1,487 ) Balance, end of period $ 4,189 $ 49,298 $ 12,616 $ 19,901 $ — $ 86,004 |
CREDIT SERVICES ORGANIZATION
CREDIT SERVICES ORGANIZATION | 12 Months Ended |
Dec. 31, 2019 | |
Guarantees [Abstract] | |
CREDIT SERVICES ORGANIZATION | CREDIT SERVICES ORGANIZATION The CSO fee receivables under CSO programs were $14.7 million and $14.3 million at December 31, 2019 and December 31, 2018 , respectively. The Company bears the risk of loss through its guarantee to purchase specific customer loans that are in default with the lenders. The terms of these loans range up to six months. See Note 1, "Significant Accounting Policies and Nature of Operations" for a description of its accounting policies. As of December 31, 2019 and December 31, 2018 , the maximum amount payable under all such guarantees was $62.7 million and $66.9 million , respectively. If the Company is required to pay any portion of the total amount of the loans it has guaranteed, it will attempt to recover some or the entire amount from the applicable customers. The Company holds no collateral in respect of the guarantees. The Company estimates a liability for losses associated with the guaranty provided to the CSO lenders using assumptions and methodologies similar to the Allowance for loan losses, which it recognizes for its consumer loans. Liability for incurred losses on CSO loans Guaranteed by the Company was $10.6 million and $12.0 million at December 31, 2019 and December 31, 2018 , respectively. The Company placed $6.2 million and $17.2 million in collateral accounts for the benefit of lenders at December 31, 2019 and December 31, 2018 , respectively, which is reflected in "Prepaid expenses and other" in the Consolidated Balance Sheets. The balances required to be maintained in these collateral accounts vary by lender, typically based on a percentage of the outstanding loan balances held by the lender. The percentage of outstanding loan balances required for collateral is negotiated between the Company and each such lender. Deferred revenue associated with the CSO program was immaterial for the years ended December 31, 2019, 2018, and 2017 and there were no costs to obtain or costs to fulfill capitalized under the program. See Note 6, "Loans Receivable and Revenue" for additional information related to loan balances and the revenue recognized under the program. |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Components of Accounts payable and accrued liabilities were as follows (in thousands): December 31, December 31, 2019 2018 Trade accounts payable $ 25,972 $ 24,463 Money orders payable 4,805 7,822 Accrued taxes, other than income taxes 295 944 Accrued payroll and fringe benefits 24,837 14,518 Other accrued liabilities 4,174 1,399 Total accounts payable and accrued liabilities $ 60,083 $ 49,146 |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Debt consisted of the following (in thousands): December 31, December 31, 2019 2018 8.25% Senior Secured Notes (due 2025) $ 678,323 $ 676,661 Non-Recourse Canada SPV Facility 112,221 107,479 Senior Revolver — 20,000 Debt $ 790,544 $ 804,140 8.25% Senior Secured Notes In August 2018, the Company issued $690.0 million of 8.25% Senior Secured Notes which mature on September 1, 2025 (" 8.25% Senior Secured Notes"). Interest on the notes is payable semiannually, in arrears, on March 1 and September 1. In connection with the 8.25% Senior Secured Notes, the balance of capitalized financing costs of $11.7 million , net of amortization, is included in the Consolidated Balance Sheets as a component of "Debt." These costs are amortized over the term of the 8.25% Senior Secured Notes as a component of interest expense. The proceeds of this issuance were used to (i) redeem the outstanding 12.00% Senior Secured Notes of CFTC, (ii) to repay a portion of the outstanding indebtedness under the five -year revolving credit facility of CURO Receivables Finance I, LLC, a wholly-owned subsidiary, which consisted of a term loan and revolving borrowing capacity, (iii) for general corporate purposes and (iv) to pay fees, expenses, premiums and accrued interest in connection therewith. 12.00% Senior Secured Notes In February and November 2017, CFTC issued $470.0 million and $135.0 million , respectively, of 12.00% Senior Secured Notes due March 1 2022 (" 12.00% Senior Secured Notes"). In connection with these 12.00% Senior Secured Notes, the Company capitalized financing costs of $18.3 million . These costs were amortized over the term of the 12.00% Senior Secured Notes as a component of interest expense. On March 7, 2018, CFTC redeemed $77.5 million of its 12.00% Senior Secured Notes using a portion of the proceeds from the Company's IPO, as required by the underlying indentures (the transaction whereby the 12.00% Senior Secured Notes were partially redeemed, the “Redemption”), at a price equal to 112.00% of the principal amount of the 12.00% Senior Secured Notes redeemed, plus accrued and unpaid interest paid thereon, to the date of Redemption. The Redemption price and the amortization of the corresponding portion of the capitalized financing costs resulted in a loss on Redemption of $11.7 million for the three months ended March 31, 2018. Following the Redemption, $527.5 million of the original outstanding principal amount of the 12.00% Senior Secured Notes remained outstanding. The Redemption was conducted pursuant to the Indenture governing the 12.00% Senior Secured Notes (the “Indenture”), dated as of February 15, 2017, by and among CFTC, the guarantors party thereto and TMI Trust Company, as trustee and collateral agent. The remainder of the 12.00% Senior Secured Notes were extinguished effective September 7, 2018 using proceeds from the 8.25% Senior Secured Notes as described above. The early extinguishment of the 12.00% Senior Secured Notes resulted in a pretax loss of $69.2 million during the year ended December 31, 2018. Non-Recourse Canada SPV Facility On August 2, 2018, CURO Canada Receivables Limited Partnership, a newly created, bankruptcy-remote special purpose vehicle (the “Canada SPV Borrower”) and a wholly-owned subsidiary, entered into a four -year revolving credit facility with Waterfall Asset Management, LLC that provides for C $175.0 million of initial borrowing capacity and the ability to expand such capacity up to C $250.0 million (“Non-Recourse Canada SPV Facility”). The loans bear interest at an annual rate of 6.75% plus the three-month CDOR. The Canada SPV Borrower also pays a 0.50% per annum commitment fee on the unused portion of the commitments. In April 2019, the facility's maturity date was extended one year , to 2023. As of December 31, 2019 , outstanding borrowings under the Non-Recourse Canada SPV Facility were $ 112.2 million , net of deferred financing costs of $3.0 million . For further information on the Non-Recourse Canada SPV, refer to Note 5, "Variable Interest Entities." Senior Revolver On September 1, 2017, the Company entered into a $25.0 million Senior Secured Revolving Loan Facility (the “Senior Revolver”). The terms of the Senior Revolver generally conform to the related provisions in the Indenture dated February 15, 2017 for the 12.00% Senior Secured Notes and complements the Company's other financing sources, while providing seasonal short-term liquidity. In February 2018, the Senior Revolver capacity was increased to $29.0 million as permitted by the Indenture to the 12.00% Senior Secured Notes, based upon consolidated tangible assets. Additionally, in November 2018, the Senior Revolver capacity was increased to $50.0 million , as permitted by the Indenture to the 8.25% Senior Secured Notes. The Senior Revolver is now syndicated with participation by four banks. Under the Senior Revolver, there is $50.0 million maximum availability, including up to $5.0 million of standby letters of credit, for a one -year term, renewable for successive terms following annual review. The current term expires June 30, 2020. The Senior Revolver accrues interest at the one -month LIBOR plus 5.00% (subject to a 5% overall minimum) and is repayable on demand. The terms of the Senior Revolver require that its outstanding balance be zero for at least 30 consecutive days in each calendar year. The Senior Revolver is guaranteed by all subsidiaries that guarantee the Company's 8.25% Senior Secured Notes and is secured by a lien on substantially all assets of CURO and the guarantor subsidiaries that is senior to the lien securing the Company's 8.25% Senior Secured Notes. Additionally, the negative covenants of the Senior Revolver generally conform to the related provisions in the Indenture for the 8.25% Senior Secured Notes. The revolver was undrawn at December 31, 2019 . The Senior Revolver contains various conditions to borrowing and affirmative, negative and financial maintenance covenants. Certain of the more significant covenants are (i) minimum eligible collateral value, (ii) consolidated interest coverage ratio and (iii) consolidated leverage ratio. The Senior Revolver also contains various events of default, the occurrence of which could result in termination of the lenders’ commitments to lend and the acceleration of all obligations under the Senior Revolver. Cash Money Revolving Credit Facility Cash Money Cheque Cashing, Inc., a Canadian subsidiary ("Cash Money"), maintains a C$10 million revolving credit facility with Royal Bank of Canada (the "Cash Money Revolving Credit Facility"), which provides short-term liquidity required to meet the working capital needs of the Company's Canadian operations. Aggregate draws under the revolving credit facility are limited to the lesser of: (i) the borrowing base, which is defined as a percentage of cash, deposits in transit and accounts receivable, and (ii) C$10 million . As of December 31, 2019 , the borrowing capacity under the Cash Money Revolving Credit Facility, which was C$9.9 million , net of C$0.1 million in outstanding stand-by-letters of credit. The Cash Money Revolving Credit Facility is collateralized by substantially all of Cash Money’s assets and contains various covenants that require, among other things, that the aggregate borrowings outstanding under the facility not exceed the borrowing base, as well as restrictions on the encumbrance of assets and the creation of indebtedness. Borrowings under the Cash Money Revolving Credit Facility bear interest per annum at the prime rate of a Canadian chartered bank plus 1.95% . The Cash Money Revolving Credit Facility was undrawn at December 31, 2019 and December 31, 2018 . Subordinated Stockholder Debt As part of the acquisition of Cash Money in 2011, the Company received indemnification for certain claims through issuance of an escrow note to the seller, bearing interest at 10.0% per annum with quarterly interest payments. This note matured and was paid during the second quarter of 2019. Non-Recourse U.S. SPV Facility In November 2016, CURO Receivables Finance I, LLC and a wholly-owned subsidiary entered into a five -year revolving credit facility with Victory Park Management, LLC and certain other lenders that provides for an $80.0 million term loan and $70.0 million revolving borrowing capacity that could expand over time (collectively, “Non-Recourse U.S. SPV Facility”). Borrowings under this facility bore interest at an annual rate of up to 12.00% plus the greater of (i) 1.0% per annum and (ii) the three-month LIBOR. The Company also paid a 0.50% per annum fee on the unused portion of the commitments. In connection with this facility, the capitalized financing costs at the time of extinguishment, as discussed below, were $5.3 million , net of amortization. These capitalized financing costs were included in the Consolidated Balance Sheets as a component of "Debt" and were amortized over the term of the Non-Recourse U.S. SPV Facility. On September 30, 2018, a portion of the proceeds from the 8.25% Senior Secured Notes were used to extinguish the revolver's balance of $42.4 million . In October 2018, the Company extinguished the remaining term loan balance of $80.0 million and made the final termination payment of $2.7 million , resulting in a loss on the extinguishment of debt of $9.7 million for the year ended December 31, 2018 . Ranking and Guarantees The 8.25% Senior Secured Notes rank senior in right of payment to all of the Company and the Company's guarantor entities’ existing and future subordinated indebtedness and equal in right of payment with all of the Company and the Company's guarantor entities’ existing and future senior indebtedness, including borrowings under revolving credit facilities. Pursuant to the Inter-creditor Agreement, these notes and the guarantees will be effectively subordinated to credit facilities and certain other indebtedness to the extent of the value of the assets securing such indebtedness and to liabilities of subsidiaries that are not guarantors. The 8.25% Senior Secured Notes are secured by liens on substantially all of the Company's and the guarantors’ assets, subject to certain exceptions. At any time prior to September 1, 2021, the Company may redeem (i) up to 40% of the aggregate principal amount of the notes at a price equal to 108.2% of the principal amount, plus accrued and unpaid interest, if any, to the applicable redemption date with the net proceeds to the Company of certain equity offerings; and (ii) some or all of the notes at a make-whole price. On or after September 1, 2021, the Company may redeem some or all of the Notes at a premium that will decrease over time, plus accrued and unpaid interest, if any, to the applicable date of redemption. The redemption price for the notes if redeemed during the 12 months beginning (i) September 1, 2021 is 104.1% , (ii) September 1, 2022 is 102.1% and (iii) on or after September 1, 2023 is 100.0% . Future Maturities of Debt Annual maturities of outstanding debt for each of the five years after December 31, 2019 are as follows (in thousands): Amount 2020 $ — 2021 — 2022 38,414 2023 76,829 2024 — Thereafter 690,000 Debt (before deferred financing costs and discounts) 805,243 Less: deferred financing costs and discounts 14,699 Debt, net $ 790,544 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION The 2010 Equity Incentive Plan (the “2010 Plan”) was originally approved by the Company's stockholders in November 2010, and amended in December 2013. The 2010 Plan provides for the issuance of up to 2,160,000 shares, subject to certain adjustment provisions, and provides for grants of stock options, restricted stock, and stock grants. Awards may be granted to employees, consultants and the Company's directors. In conjunction with approval of the 2017 Incentive Plan, no new awards will be granted under the 2010 Plan. The Company's stockholder-approved 2017 Incentive Plan provides for the issuance of up to 5.0 million shares, subject to certain adjustment provisions, which may be issued in the form of stock options, restricted stock awards, restricted stock units (“RSUs”), stock appreciation rights, performance awards and other awards that may be settled in or based on common stock. Awards may be granted to officers, employees, consultants and directors. The 2017 Incentive Plan provides that shares of common stock subject to awards granted become available for re-issuance if such awards expire, terminate, are canceled for any reason or are forfeited by the recipient. Stock Options Stock options are awards which allow the grantee to purchase shares of common stock at prices equal to the fair value at the date of grant. Stock options granted under the 2010 Plan typically vest at a rate of 20% per year over a 5 -year period, have a term of 10 years and are subject to limitations on transferability. The Company did no t grant stock option awards in 2019 or 2018. For the year ended December 31, 2017, the fair value of the options granted was calculated at each grant date using a Black-Scholes option-pricing model which assumed the following weighted average assumptions: expected volatility of 45.3% , expected term of 6.1 years , risk-free interest rate of 2.2% , and no expected dividends. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by individuals who receive equity awards, and subsequent events are not indicative of the reasonableness of the Company's original estimates of fair value. The Company has estimated the expected term of stock options using a formula considering the weighted average vesting term and the original contract term. The expected volatility is estimated based upon the historical volatility of publicly traded stocks from the Company's industry sector (the alternative financial services sector). The expected risk-free interest rate is based on an average of various U.S. Treasury rates based on the expected term of the awards. CURO's share-based compensation is measured at the grant date, based on the fair value of the award, which is recognized on a straight-line basis over the requisite service period. The Company accounts for forfeitures as they occur in accordance with the election provided under ASU 2016-09, Stock Compensation . See Note 1, "Summary of Significant Accounting Policies and Nature of Operations" for additional information on share-based compensation. The following table summarizes the Company's stock option activity for the years ended December 31, 2019 , 2018 and 2017 : Stock Options Weighted Average Exercise Price Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in millions) Outstanding at January 1, 2017 1,879,308 $ 2.73 4.6 $ 2.1 Granted 99,396 $ 8.86 $ 4.11 Exercised — $ — Forfeited (1,224 ) $ 3.39 Outstanding at December 31, 2017 1,977,480 $ 3.04 5.2 $ 21.8 Granted — $ — $ — Exercised (500,924 ) $ 1.46 $ 4.0 Forfeited (31,224 ) $ 4.03 $ 1.84 Outstanding at December 31, 2018 1,445,332 $ 3.56 3.7 $ 8.6 Granted — $ — Exercised (40,014 ) $ 3.71 $ 0.3 Forfeited (696 ) $ 8.86 $ 4.07 Outstanding at December 31, 2019 1,404,622 $ 3.56 2.6 $ 12.1 Options exercisable at December 31, 2019 1,226,422 $ 3.42 2.1 $ 10.7 Restricted Stock Units Grants of time-based RSUs are valued at the date of grant based on the closing market price of common stock and are expensed using the straight-line method over the service period. These RSUs are subject to time-based vesting and typically vest over a three -year period. Grants of market-based RSUs are valued using the Monte Carlo simulation pricing model. In March 2019, the Company awarded market-based RSUs designed to drive the performance of the management team toward achievement of key corporate objectives. The market-based RSUs vest after three years if the Company's total stockholder return over the three -year performance period meets a specified target relative to other companies in its selected peer group. Expense recognition for the market-based awards occurs over the service period using the straight-line method. Unvested shares of RSUs may be forfeited upon termination of employment depending on the circumstances of the termination, or failure to achieve the required performance condition, if applicable. A summary of the activity of time-based and market-based unvested RSUs for the years ended December 31, 2019 and 2018 is presented in the following table: Number of RSUs Weighted Average Grant Date Fair Value per Share Time-Based Market-Based January 1, 2017 — — $ — Granted 1,516,241 — $ 14.00 Vested — — $ — Forfeited — — $ — December 31, 2017 1,516,241 — $ 14.00 Granted 73,663 — $ 18.20 Vested (508,126 ) — $ 14.00 Forfeited (21,428 ) — $ 14.00 December 31, 2018 1,060,350 — $ 14.29 Granted 598,114 397,752 $ 10.08 Vested (514,552 ) — $ 14.21 Forfeited (82,159 ) (2,891 ) $ 13.71 December 31, 2019 1,061,753 394,861 $ 11.47 Share-based compensation expense, which includes compensation costs from stock options and RSUs, included in the Consolidated Statements of Operations as a component of "Corporate, district and other" expenses is summarized in the following table (in thousands): For the year ended, 2019 2018 2017 Pre-tax share-based compensation expense $ 10,323 $ 8,210 $ 965 Income tax benefit (2,632 ) (2,217 ) (386 ) Total share-based compensation expense, net of tax $ 7,691 $ 5,993 $ 579 As of December 31, 2019 , there was $13.1 million of unrecognized compensation cost related to stock options and RSUs, of which $10.3 million related to time-based RSUs and $2.5 million related to market-based RSUs. Total unrecognized compensation costs will be recognized over a weighted-average period of 1.6 years. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income before taxes and income tax expense (benefit) was comprised of the following: Year Ended December 31, (in thousands) 2019 2018 2017 Income (loss) before taxes: U.S. tax jurisdictions $ 119,241 $ 16,759 $ 67,771 Non-U.S. tax jurisdictions 23,214 1,359 34,485 Total income (loss) before taxes $ 142,455 $ 18,118 $ 102,256 Current tax provision (benefit) Federal $ 3,160 $ (7,983 ) $ 19,935 State 395 (1,518 ) 2,409 Foreign 930 7,748 10,542 Total current provision (benefit) 4,485 (1,753 ) 32,886 Deferred tax provision (benefit) Federal 22,978 7,471 6,283 State 5,145 631 2,647 Foreign 5,949 (4,690 ) (169 ) Total deferred tax provision (benefit) 34,072 3,412 8,761 Total provision for income taxes $ 38,557 $ 1,659 $ 41,647 The Tax Cuts and Jobs Act of 2017 (the "2017 Tax Act”) enacted various changes to the U.S. federal corporate tax law. Some of the most significant provisions impacting the Company include a reduced U.S. corporate income tax rate from 35% to 21% effective in 2018 and a one-time “deemed repatriation” tax on unremitted earnings accumulated in non-U.S. jurisdictions. Pursuant to ASC 740, Income Taxes , the Company recognized the effects of changes in tax laws and rates on deferred tax assets and liabilities. The total impact of the 2017 Tax Act was comprised of expense of $6.5 million related to the deemed repatriation of unremitted earnings of foreign subsidiaries ( $8.1 million provisional expense in 2017 and a benefit of $1.6 million in 2018) and a benefit of $4.2 million related to the remeasurement of the Company's net deferred tax liabilities arising from a lower U.S. corporate tax rate. The remaining provisions of the 2017 Tax Act are not expected to have a material impact on the Company's results of operations or financial condition. The benefit associated with the remeasurement of the Company's net deferred tax liabilities arising from a lower U.S. corporate tax rate will be recognized as cash benefits at varying times as related assets and liabilities impact current tax expense. As of December 31, 2019 , the Company had undistributed earnings of certain foreign subsidiaries of $181.3 million . The Company intends to reinvest its foreign earnings indefinitely in the non-U.S. operations and therefore have not provided for any non-U.S. withholding tax that would be assessed on dividend distributions. If the earnings of $181.3 million were distributed to the U.S., the Company would be subject to estimated Canadian withholding taxes of approximately $9.1 million . In the event the earnings were distributed to the U.S., the Company would adjust its income tax provision for the period and would determine the amount of foreign tax credit that would be available. The sources of deferred income tax assets (liabilities) are summarized as follows: Year Ended December 31, (in thousands) 2019 2018 Deferred tax assets related to: Accrued expenses and other reserves $ 2,092 $ 3,267 Lease liability 32,009 — Compensation accruals 6,354 4,954 Deferred revenue 461 78 Federal net operating loss and capital loss carryforwards 13,693 — State and provincial net operating loss carryforwards 3,228 1,611 Foreign net operating loss and capital loss carryforwards 4,754 3,592 Tax credit carryforwards 158 — Gross deferred tax assets 62,749 13,502 Less: Valuation allowance (8,328 ) (6,996 ) Net deferred tax assets $ 54,421 $ 6,506 Deferred tax liabilities related to: Property and equipment $ (3,339 ) $ (3,870 ) Right of use asset (29,251 ) — Goodwill and other intangible assets (14,986 ) (14,508 ) Prepaid expenses and other assets (628 ) (197 ) Loans receivable (5,614 ) (127 ) Gross deferred tax liabilities (53,818 ) (18,702 ) Net deferred tax liabilities $ 603 $ (12,196 ) Deferred tax assets and liabilities are included in the following line items in the Consolidated Balance Sheets: Year Ended December 31, (in thousands) 2019 2018 Net current deferred tax assets $ 5,055 $ 1,534 Net long-term deferred tax liabilities (4,452 ) (13,730 ) Net deferred tax liabilities $ 603 $ (12,196 ) Differences between the Company's effective income tax rate computed on net earnings or loss before income taxes and the statutory federal income tax rate were as follows (dollars in thousands): Year Ended December 31, 2019 2018 2017 Income tax expense using the statutory federal rate in effect $ 29,916 $ 3,805 $ 35,790 Tax effect of: Effects of foreign rates different than U.S. statutory rate (1,393 ) (65 ) (6,993 ) State, local and provincial income taxes, net of federal benefit 8,959 313 7,128 Tax credits (138 ) (116 ) (450 ) Nondeductible expenses 33 77 409 Valuation allowance 1,609 1,983 631 Deferred remeasurement — — 683 Repatriation tax — (1,610 ) 8,100 Deferred remeasurement due to the 2017 Tax Act — — (4,162 ) Share-based compensation 150 (2,944 ) — Other (579 ) 216 511 Total provision for income taxes $ 38,557 $ 1,659 $ 41,647 Effective income tax rate 27.1 % 8.4 % 40.7 % Statutory federal income tax rate 21.0 % 21.0 % 35.0 % At December 31, 2019 and December 31, 2018 , the Company had no reserves related to uncertain tax positions. The tax years 2016 through 2018 remain open to examination by the taxing authorities in the U.S. The tax years 2014 through 2018 remain open to examination by the taxing authorities in Canada. The Company expects no material change related to its current positions in recorded unrecognized income tax benefit liability in the next 12 months. The Company files income tax returns in U.S. federal and various state jurisdictions, Canada (including provinces). A summary of the valuation allowance was as follows (in thousands): Year Ended December 31, 2019 2018 2017 Balance at the beginning of year $ 6,996 $ 4,375 $ 3,717 Increase to balance charged as expense 1,609 1,983 631 Effect of foreign currency translation (277 ) 638 27 Balance at end of year $ 8,328 $ 6,996 $ 4,375 As of December 31, 2019 , the Company's deferred tax assets from foreign net operating loss carryforwards were approximately $6.1 million . The Canadian net operating loss carryforwards expire in varying amounts in 2033 through 2039. The Company does not expect to have taxable income in the near future in these jurisdictions. As of December 31, 2019 , the Company had a $6.1 million valuation allowance related to these foreign operating losses. As of December 31, 2019 , the Company's federal net operating loss carryforward deferred tax assets were approximately $13.7 million . The Company expects to have future federal taxable income in the United States and has not recorded a valuation allowance related to these domestic operating losses. As of December 31, 2019 , the Company had state net operating loss carryforward deferred tax assets of $1.9 million . These carryforwards expire in varying amounts in 2020 through 2040 and exist in states in which the Company may not have taxable income in the near future. The Company has recorded a valuation allowance of $0.5 million related to these state net operating losses. During the years ended December 31, 2019 , 2018 and 2017 , the Company did no t record any estimated interest or penalties. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The Company is required to use valuation techniques that are consistent with the market approach, income approach and/or cost approach. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability based on observable market data obtained from independent sources, or unobservable, meaning those that reflect the Company's own estimate about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. Accounting standards establish a three-level fair value hierarchy based upon the assumptions (inputs) used to price assets or liabilities. The hierarchy requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are listed below. Level 1 – Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has access to at the measurement date. Level 2 – Inputs include quoted market prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). Level 3 – Unobservable inputs reflecting the Company's own judgments about the assumptions market participants would use in pricing the asset or liability because limited market data exists. The Company develops these inputs based on the best information available, including its own data. Financial Assets and Liabilities Carried at Fair Value The table below presents the assets and liabilities that were carried at fair value on the Consolidated Balance Sheets at December 31, 2019 (in thousands): Estimated Fair Value Carrying Value December 31, Level 1 Level 2 Level 3 Total Financial assets: Cash Surrender Value of Life Insurance $ 6,171 $ 6,171 $ — $ — $ 6,171 Financial liabilities: Non-qualified deferred compensation plan $ 4,666 $ 4,666 $ — $ — $ 4,666 The table below presents the assets and liabilities that were carried at fair value on the Consolidated Balance Sheets at December 31, 2018 (in thousands): Estimated Fair Value Carrying Value December 31, Level 1 Level 2 Level 3 Total Financial assets: Cash Surrender Value of Life Insurance $ 4,790 $ 4,790 $ — $ — $ 4,790 Financial liabilities: (1) Non-qualified deferred compensation plan $ 3,639 $ 3,639 $ — $ — $ 3,639 Financial Assets and Liabilities Not Carried at Fair Value The table below presents the assets and liabilities that were not carried at fair value on the Consolidated Balance Sheets at December 31, 2019 (in thousands). Estimated Fair Value Carrying Value December 31, Level 1 Level 2 Level 3 December 31, 2019 Financial assets: Cash $ 75,242 $ 75,242 $ — $ — $ 75,242 Restricted cash 34,779 34,779 — — 34,779 Loans receivable, net 558,993 — — 558,993 558,993 Equity method investment 10,068 — — 10,068 10,068 Financial liabilities: Liability for losses on CSO lender-owned consumer loans $ 10,623 $ — $ — $ 10,623 $ 10,623 8.25% Senior Secured Notes 678,323 — 596,924 — 596,924 Non-Recourse Canada SPV facility 112,221 — — 115,243 115,243 The table below presents the assets and liabilities that were not carried at fair value on the Consolidated Balance Sheets at December 31, 2018 (in thousands). Estimated Fair Value Carrying Value December 31, Level 1 Level 2 Level 3 December 31, 2018 Financial assets: Cash $ 61,175 $ 61,175 $ — $ — $ 61,175 Restricted cash 25,439 25,439 — — 25,439 Loans receivable, net 497,534 — — 497,534 497,534 Equity method investment 6,558 — — 6,558 6,558 Financial liabilities: Liability for losses on CSO lender-owned consumer loans $ 12,007 $ — $ — $ 12,007 $ 12,007 8.25% Senior Secured Notes 676,661 — 531,179 — 531,179 Non-Recourse Canada SPV facility 107,479 — — 111,335 111,335 Senior Revolver 20,000 — — 20,000 20,000 Loans receivable are carried on the Consolidated Balance Sheets net of the Allowance for estimated loan losses. The unobservable inputs used to calculate the carrying values include quantitative factors, such as current default trends. Also considered in evaluating the accuracy of the models are changes to the loan portfolio mix, the impact of new loan products, changes to underwriting criteria or lending policies, new store development or entrance into new markets, changes in jurisdictional regulations or laws, recent credit trends and general economic conditions. The carrying value of loans receivable approximates their fair value. Refer to Note 6, "Loans Receivable and Revenue" for additional information. During 2019, Katapult completed an equity raising round at a value per share less than the value per share raised in prior raises. This round included additional investments from existing shareholders and investments by new investors and is considered indicative of the fair value of shares in Katapult. Accordingly, the Company recognized a $3.7 million loss on the investment to adjust it to market value. As of December 31, 2019 , the Company owned approximately 43.8% of the outstanding shares of Katapult. Refer to Note 1, "Summary of Significant Accounting Policies and Nature of Operations, " for additional information on the Company's investment in Katapult. In connection with the Company's CSO programs, the accounting for which is discussed in detail in Note 1, "Summary of Significant Accounting Policies and Nature of Operations, " the Company guarantees consumer loan payment obligations to unrelated third-party lenders for loans that the Company arranges for consumers on the third-party lenders’ behalf. The Company is required to purchase from the lender defaulted loans that it has guaranteed. Refer to Note 6, "Loans Receivable and Revenue" for additional information. The 8.25% Senior Secured Notes fair value level was transferred from Level 3, as previously reported, to Level 2 for the years ended December 31, 2019 and 2018. Upon management's review of the inputs, the Level 2 disclosure is appropriate given the limited trading activity in this public (observable) market. The fair values of the Non-Recourse Canada SPV facility and the Senior Revolver were based on the cash needed for their respective final settlement. Refer to Note 9, "Debt" for additional information. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY In connection with the completion of its IPO in 2017, the Company entered into the Amended and Restated Investors Rights Agreement with certain of its existing stockholders, including the original founders of the Company ("Founder Holders") and Freidman Fleisher & Lowe Capital Partners II, L.P. and its affiliated funds, (collectively, the “FFL Funds”), whom the Company collectively refers to as the "principal holders." Pursuant to this Amended and Restated Investors Rights Agreement, the Company agreed to register the sale of shares of its common stock held by the principal holders under certain circumstances. On December 6, 2017 the Company effected a 36 -for-1 split of its common stock, and on December 11, 2017, the Company increased the authorized number of shares of its common stock to 250 million , consisting of 225 million shares of common stock, with a par value of $0.001 per share, and 25 million shares of preferred stock, with a par value of $0.001 per share. All share and per share data have been retroactively adjusted for all periods presented to reflect the stock split as if the stock split had occurred at the beginning of the earliest period presented. The Company completed its IPO of 6,666,667 shares of common stock on December 11, 2017, at a price of $14.00 per share, which provided net proceeds of $81.1 million . On December 7, 2017, the Company's stock began trading on the New York Stock Exchange ("NYSE") under the symbol "CURO." On January 5, 2018, the underwriters exercised their option to purchase additional shares at the IPO price, less the underwriting discount, which provided additional proceeds of $13.1 million . On March 7, 2018, the Company used a portion of the IPO net proceeds to redeem $77.5 million of the 12.00% Senior Secured Notes due 2022, together with related fees, expenses, premiums and accrued interest. In February 2017, CFTC paid the Company a $130.1 million dividend to fund the redemption of the 12.00% Senior Cash Pay Notes. The Company paid dividends to its stockholders of $28.0 million in May 2017, $8.5 million in August 2017 and $5.5 million in October 2017. In connection with the issuance of $135.0 million of additional 12.00% Senior Secured Notes on November 2, 2017, CFTC paid a cash dividend in the amount of $140.0 million to us, and the Company declared a dividend of $140.0 million , which was paid to its stockholders on November 2, 2017. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION Supplemental cash flow information was as follows (in thousands): Year Ended December 31, 2019 2018 2017 Cash paid for: Interest $ 69,134 $ 84,823 $ 60,054 Income taxes, net of refunds 2,355 16,311 26,863 Non-cash investing activities: Property and equipment accrued in accounts payable 631 1,718 1,631 |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING Segment information is prepared on the same basis that the Company's Chief Operating Decision Maker ("CODM") reviews financial information for operational decision-making purposes, including revenues, net revenue, gross margin, segment operating income and other items. The Company has two reportable operating segments: the U.S. and Canada. U.S. As of December 31, 2019 , the Company operated a total of 214 U.S. retail locations and has an online presence in 27 states. The Company provides Single-Pay loans, Installment loans and Open-End loans, vehicle title loans, check cashing, money transfer services, reloadable prepaid debit cards and a number of other ancillary financial products and services to its customers in the U.S. Canada. As of December 31, 2019 , the Company operated a total of 202 stores across seven Canadian provinces and territories and has an online presence in five provinces. The Company provides Single-Pay loans, Installment loans and Open-End loans, check cashing, money transfer services, foreign currency exchange, reloadable prepaid debit cards, and a number of other ancillary financial products and services to its customers in Canada. Management’s evaluation of segment performance utilizes gross margin and operating profit before the allocation of interest expense and professional services. The following reporting segment results reflect this basis for evaluation and were determined in accordance with the same accounting principles used in the Consolidated Financial Statements. The following table presents summarized financial information concerning the Company's reportable segments (in thousands): Year Ended December 31, 2019 2018 2017 Revenues by segment: (1) U.S. $ 913,506 $ 853,141 $ 737,729 Canada 228,291 191,932 186,408 Consolidated revenue $ 1,141,797 $ 1,045,073 $ 924,137 Net revenues by segment: U.S. $ 521,401 $ 504,530 $ 470,238 Canada 151,845 118,943 141,333 Consolidated net revenue $ 673,246 $ 623,473 $ 611,571 Gross margin by segment: U.S. $ 302,952 $ 284,828 $ 267,215 Canada 75,664 40,642 67,950 Consolidated gross margin $ 378,616 $ 325,470 $ 335,165 Segment operating income (loss): U.S. $ 99,152 $ 1,117 $ 51,459 Canada 43,303 17,001 50,797 Consolidated operating profit $ 142,455 $ 18,118 $ 102,256 Expenditures for long-lived assets by segment: U.S. $ 12,733 $ 11,105 $ 7,406 Canada 1,879 2,928 1,311 Consolidated expenditures for long-lived assets $ 14,612 $ 14,033 $ 8,717 (1) For revenue by product, see Note 6, "Loans Receivable and Revenue." The following table provides the proportion of gross loans receivable by segment (in thousands): December 31, December 31, U.S. $ 363,453 $ 361,473 Canada 302,375 210,058 Total gross loans receivable $ 665,828 $ 571,531 The following table presents the Company's net long-lived assets, comprised of property and equipment, by segment. These amounts are aggregated on a legal entity basis and do not necessarily reflect where the asset is physically located (in thousands): December 31, 2019 December 31, 2018 U.S. $ 43,618 $ 47,918 Canada 27,193 28,832 Total $ 70,811 $ 76,750 The chief operating decision maker does not review assets by segment for purposes of allocating resources or decision-making purposes; therefore, total assets by segment are not disclosed. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Securities Litigation On December 5, 2018, a putative securities fraud class action lawsuit was filed against the Company and its chief executive officer, chief financial officer and chief operating officer in the United States District Court for the District of Kansas, captioned Yellowdog Partners, LP v. CURO Group Holdings Corp., Donald F. Gayhardt, William Baker and Roger W. Dean , Civil Action No. 18-2662. On May 31, 2019, plaintiffs filed a consolidated complaint naming Doug Rippel, Chad Faulkner, Mike McKnight, Friedman Fleischer & Lowe Capital Partners II, L.P., FFL Executive Partners II, L.P., and FFL Parallel Fund II, L.P. as additional defendants. The complaint alleges that the Company and the individual defendants violated Section 10(b) of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and that certain defendants also violated Section 20(a) of the Exchange Act as "control persons" of CURO. Plaintiffs purport to bring these claims on behalf of a class of investors who purchased Company common stock between April 27, 2018 and October 24, 2018. Plaintiffs allege generally that, during the putative class period, the Company made misleading statements and omitted material information regarding its efforts to transition the Canadian inventory of products from Single-Pay loans to Open-End loans. Plaintiffs assert that the Company and the individual defendants made these misstatements and omissions to keep the stock price high. Plaintiffs seek unspecified damages and other relief. While the Company is vigorously contesting this lawsuit, it cannot determine the final resolution or when it might be resolved. In addition to the expenses incurred in defending this litigation and any damages that may be awarded in the event of an adverse ruling, management’s efforts and attention may be diverted from the ordinary business operations to address these claims. Regardless of the outcome, this litigation may have a material adverse impact on results because of defense costs, including costs related to indemnification obligations, diversion of resources and other factors. In 2019, the Company accrued $2.5 million in costs related to the litigation. During the first quarter of 2019, the Company received an inquiry from the SEC regarding the Company's public disclosures surrounding its efforts to transition the Canadian inventory of products from Single-Pay loans to Open-End loans. City of Austin The Company was cited in July 2016 by the City of Austin, Texas for alleged violations of the Austin ordinance addressing products offered by CSOs. The Austin ordinance regulates aspects of products offered under the Company's credit access bureau ("CAB") program, including loan sizes and repayment terms. The Company believes that: (i) the Austin ordinance (similar to its counterparts elsewhere in Texas) conflicts with Texas state law and (ii) in any event, the Company's product complies with the ordinance, when the ordinance is properly construed. The Austin Municipal Court agreed with the Company's position that the ordinance conflicts with Texas law and, accordingly, did not address the second argument. In September 2017, the Travis County Court reversed the Municipal Court’s decision and remanded the case for further proceedings. To date, a hearing and trial on the merits have not been scheduled. The Company does not anticipate having a final determination of the lawfulness of its CAB program under the Austin ordinance (and similar ordinances in other Texas cities) in the near future. A final adverse decision could potentially result in material monetary liability in Austin and elsewhere in Texas, and would force the Company to restructure the loans it originates in Austin and elsewhere in Texas. Other Legal Matters The Company is a defendant in certain litigation matters encountered from time-to-time in the ordinary course of business. Certain of these matters may be covered to an extent by insurance. While it is difficult to predict the outcome of any particular proceeding, the Company does not believe the result of any of these matters will have a material adverse effect on the Company's business, results of operations or financial condition. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | LEASES Operating leases entered into by the Company are primarily for retail stores in certain U.S. states and Canadian provinces. Leases classified as finance are immaterial to the Company as of December 31, 2019. Operating leases expire at various times through 2030. The Company determines if an arrangement is a lease at inception. Operating leases are included in "Right of use asset - operating leases" and "Lease liability - operating leases" on the Consolidated Balance Sheets. Typically, a contract is or contains a lease if it conveys the right to control the use of an identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. To determine whether a contract conveys the right to control the use of an identified asset for a period of time, an entity shall assess whether, throughout the period of use, the customer has both (a) the right to obtain substantially all of the economic benefits from use of the identified asset and (b) the right to direct the use of the identified asset. If the customer has the right to control the use of an identified asset for only a portion of the term of the contract, the contract contains a lease for that portion of the term. The Company recognizes ROU assets and lease liabilities based on the present value of lease payments over the lease term at commencement date. The rate implicit in the Company's leases typically are not readily determinable. As a result, the Company uses its estimated incremental borrowing rate, as allowed by ASC 842, in determining the present value of lease payments. The incremental borrowing rate is based on internal and external information available at the lease commencement date and is determined using a portfolio approach (i.e. using the weighted average terms of all leases in the Company's portfolio). This rate is the theoretical rate the Company would pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term as that of the portfolio. The Company uses quoted interest rates obtained from financial institutions as an input, adjusted for Company specific factors, to derive the incremental borrowing rate as the discount rate for the leases. As new leases are added each period, the Company evaluates whether the incremental borrowing rate has changed. If the incremental borrowing rate has changed, the Company will apply the rate to new leases if not doing so would result in a material difference to the ROU asset and lease liability presented on the balance sheet. The majority of the leases have an original term of five years with two five -year renewal options. The consumer price index is used in determining future lease payments and for purposes of calculating operating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Most of the leases have escalation clauses and certain leases also require payment of period costs, including maintenance, insurance and property taxes. Some of the leases are with related parties and have terms similar to the non-related party leases. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. The following table summarizes the operating lease costs for the year ended December 31, 2019 (in thousands): Year Ended Operating lease costs: Third-Party $ 30,479 Related-Party 3,464 Total (1) $ 33,943 (1) Includes immaterial variable lease costs. During the year ended December 31, 2019 , cash paid for amounts included in the measurement of the liabilities and the operating cash flows were $34.9 million . ROU assets obtained in exchange for lease liabilities were $15.8 million . The following table summarizes the aggregate operating lease maturities that the Company is contractually obligated to make under operating leases as of December 31, 2019 (in thousands): Third-Party Related-Party Total 2020 $ 30,965 $ 3,754 $ 34,719 2021 27,520 3,773 31,293 2022 24,497 3,667 28,164 2023 19,574 1,322 20,896 2024 14,657 967 15,624 Thereafter 36,170 3,536 39,706 Total 153,383 17,019 170,402 Less: Imputed interest (41,237 ) (4,167 ) (45,404 ) Operating lease liabilities $ 112,146 $ 12,852 $ 124,998 There are no material leases subsequent to the balance sheet date. As of December 31, 2019 , the weighted average remaining lease term was 6.1 years, and the weighted average operating discount rate used to determine the operating lease liability remained 10.3% . The discount rates applied to each lease reflect the Company's estimated incremental borrowing rate. This includes an assessment of our credit position to determine the rate that the Company would have to pay to borrow, on a collateralized basis for similar terms. In accordance with the prior guidance, ASC 840, Leases , the future minimum lease payments by fiscal year as determined prior to the adoption of ASC 842, Leases , as disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2018 , were as follows (in thousands): Third Party Related Party Total 2019 $ 24,211 $ 3,330 $ 27,541 2020 20,547 3,285 23,832 2021 17,301 3,324 20,625 2022 14,558 3,322 17,880 2023 10,269 705 10,974 Thereafter 13,446 730 14,176 Total (1) $ 100,332 $ 14,696 $ 115,028 (1) Future minimum lease payments exclude the U.K. as all U.K. subsidiaries were placed into administration effective February 25, 2019. Rent expense on unrelated third-party leases for the years ended December 31, 2018 and 2017 was $22.4 million and $22.1 million , respectively; and for related party leases was $3.5 million and $3.3 million , respectively. |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED-PARTY TRANSACTIONS | RELATED-PARTY TRANSACTIONS The Company has historically used Ad Astra Recovery Services, Inc. (“Ad Astra”), which is owned by the Founder Holders, as its third-party collection services for U.S. operations. The Company acquired Ad Astra on January 3, 2020. See Note 24 - "Subsequent Events" for further information. Generally, once loans are between 91 and 121 days delinquent, the Company referred them to Ad Astra for collections and Ad Astra earned a commission fee equal to 30% of any amounts successfully recovered. Payments collected by Ad Astra on the Company's behalf and commissions payable to Ad Astra were net settled on a one -month lag. The net amount receivable from Ad Astra at December 31, 2019 , 2018 and 2017 was $1.4 million , $1.1 million and $0.7 million , respectively. These amounts are included in “Prepaid expenses and other” in the Consolidated Balance Sheets. The commission expense paid to Ad Astra for the years ended December 31, 2019 , 2018 and 2017 was $15.5 million , $13.8 million and $12.4 million , respectively, and is included in “Other costs of providing services” in the Consolidated Statements of Operations. The Company has entered into several operating lease agreements for its corporate office, collection office and stores in which the Company operates, with several real estate entities that are related through common ownership. These operating leases are discussed in Note 17 - "Leases." |
BENEFIT PLANS
BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
BENEFIT PLANS | BENEFIT PLANS In conjunction with its IPO, the Company approved the 2017 Employee Stock Purchase Plan ("ESPP") that provides certain of its employees the opportunity to purchase shares of its common stock through separate offerings that may vary in terms. The Company has provided for the issuance of up to 2,500,000 shares to be utilized in the ESPP. Although approved, the Company has not authorized employees to purchase shares under the ESPP. In 2015, the Company instituted a nonqualified deferred compensation plan that provides certain of its employees with the opportunity to elect to defer base salary and performance-based compensation, which, upon such election, will be credited to the participant’s deferred compensation account. Participant contributions are fully vested at all times. Each deferred compensation account will be invested in one or more investment funds made available by the Company and selected by the participant. The Company may make discretionary contributions to the individual deferred compensation accounts, with the amount, if any, determined annually by us. The Company's contributions vest over three years . Each vested deferred compensation account will be paid out in a lump sum either upon a participant’s separation from service or a future date chosen by the participant at the time of enrollment. The amount deferred under this plan totaled $4.7 million , $3.6 million and $3.3 million as of December 31, 2019 , 2018 and 2017 , respectively, and was recorded in "Other long-term liabilities" on the Consolidated Statement of Operations. In 2013, the Company instituted a Registered Retirement Savings Plan (“RRSP”) which covers all Canadian employees. The Company matches the employee contribution at a rate of 50% of the first 6% of compensation contributed to the RRSP. Employee contributions vest immediately. Employer contributions vest 50% after one year and 100% after two years. The Company's contributions to the RRSP were $0.3 million , $0.2 million and $0.2 million as of December 31, 2019 , 2018 and 2017 , respectively. In 2010, the Company instituted a 401(k) retirement savings plan which covers all U.S. employees. Employees may voluntarily contribute up to 90% of their compensation, as defined, to the 401(k) plan. The Company matches the employee contribution at a rate of 50% of the first 6% of compensation contributed to the plan. Employee contributions vest immediately. Employer contributions vest one-third for each of the first three years of employment until fully vested after three years of employment. The Company's contributions to the plan were $1.5 million , $1.4 million and $1.3 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The Company owns life insurance policies on plan beneficiaries as an informal funding vehicle to meet future benefit obligations. These policies are recorded at their cash surrender value and are included in other assets. Income generated from policies is recorded in "Corporate, district and other expenses" on the Consolidated Statement of Operations. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following presents the computation of basic and diluted earnings per share (in thousands, except per share amounts): Year Ended December 31, 2019 2018 2017 (1) Net income from continuing operations $ 103,898 $ 16,459 $ 60,609 Income (loss) from discontinued operations, net of tax 7,590 (38,512 ) (11,456 ) Net income (loss) $ 111,488 $ (22,053 ) $ 49,153 Weighted average common shares - basic 44,685 45,815 38,351 Dilutive effect of stock options and restricted stock units 1,289 2,150 926 Weighted average common shares - diluted 45,974 47,965 39,277 Basic earnings (loss) per share: Continuing operations $ 2.33 $ 0.36 $ 1.58 Discontinued operations 0.17 (0.84 ) (0.30 ) Basic earnings (loss) per share $ 2.50 $ (0.48 ) $ 1.28 Diluted earnings (loss) per share: Continuing operations $ 2.26 $ 0.34 $ 1.54 Discontinued operations 0.17 (0.80 ) (0.29 ) Diluted earnings (loss) per share $ 2.43 $ (0.46 ) $ 1.25 (1) The per share information has been adjusted to give effect to the 36-to-1 stock split of the Company's common stock which was effective December 6, 2017. Potential common shares that would have the effect of increasing diluted earnings per share or decreasing diluted loss per share are considered to be anti-dilutive and as such, these shares are not included in calculating diluted earnings per share. For the year ended December 31, 2019 , there were 0.4 million of potential shares of common stock excluded from the calculation of Diluted earnings per share because their effect was anti-dilutive. There was no effect for the years ended December 31, 2018 and 2017. The Company utilizes the "control number" concept in the computation of Diluted earnings per share to determine whether potential common stock instruments are dilutive. The control number used is income from continuing operations. The control number concept requires that the same number of potentially dilutive securities applied in computing diluted earnings per share from continuing operations be applied to all other categories of income or loss, regardless of their anti-dilutive effect on such categories. |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | QUARTERLY FINANCIAL DATA (UNAUDITED) The following is a summary of the quarterly results of operations for the years ended December 31, 2019 and 2018 (dollars in thousands, except per share amounts): 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 277,939 $ 264,300 $ 297,264 $ 302,294 Provision for losses 102,385 112,010 123,867 130,289 Net revenue $ 175,554 $ 152,290 $ 173,397 $ 172,005 Total cost of providing services $ 70,057 $ 71,109 $ 76,758 $ 76,706 Gross margin $ 105,497 $ 81,181 $ 96,639 $ 95,299 Net income from continuing operations 28,673 17,667 27,987 29,571 Net income (loss) from discontinued operations, net of tax $ 8,375 $ (834 ) $ (598 ) $ 647 Net income $ 37,048 $ 16,833 $ 27,389 $ 30,218 Basic income (loss) per share: Continuing operations $ 0.62 $ 0.38 $ 0.63 $ 0.71 Discontinued operations 0.18 (0.02 ) (0.01 ) 0.02 Basic income per share $ 0.80 $ 0.36 $ 0.62 $ 0.73 Diluted income (loss) per share: Continuing operations $ 0.61 $ 0.38 $ 0.61 $ 0.68 Discontinued operations 0.18 (0.02 ) (0.01 ) 0.01 Diluted income per share $ 0.79 $ 0.36 $ 0.60 $ 0.69 Basic weighted average shares outstanding 46,424 46,451 44,422 41,500 Diluted weighted average shares outstanding 47,319 47,107 46,010 43,243 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 250,843 $ 237,169 $ 269,482 $ 287,579 Provision for losses 76,883 86,347 127,692 130,678 Net revenue $ 173,960 $ 150,822 $ 141,790 $ 156,901 Total cost of providing services $ 68,114 $ 73,474 $ 81,196 $ 75,219 Gross margin $ 105,846 $ 77,348 $ 60,594 $ 81,682 Net income (loss) from continuing operations 24,913 18,718 (42,590 ) 15,418 Net loss from discontinued operations, net of tax $ (1,621 ) $ (2,743 ) $ (4,432 ) $ (29,716 ) Net income (loss) $ 23,292 $ 15,975 $ (47,022 ) $ (14,298 ) Basic income (loss) per share: Continuing operations $ 0.55 $ 0.41 $ (0.93 ) $ 0.33 Discontinued operations (0.04 ) (0.06 ) (0.10 ) (0.64 ) Basic income (loss) per share $ 0.51 $ 0.35 $ (1.03 ) $ (0.31 ) Diluted income (loss) per share: Continuing operations $ 0.53 $ 0.39 $ (0.93 ) $ 0.32 Discontinued operations (0.03 ) (0.06 ) (0.10 ) (0.62 ) Diluted income (loss) per share $ 0.50 $ 0.33 $ (1.03 ) $ (0.30 ) Basic weighted average shares outstanding 45,506 45,650 45,853 46,158 Diluted weighted average shares outstanding 47,416 47,996 45,853 47,773 The Company's operations are subject to seasonal fluctuations. Typically, the Company's cost of revenue, which represents loan loss provision, is lowest as a percentage of revenue in the first quarter of each year. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS On February 25, 2019, in accordance with the provisions of the U.K. Insolvency Act 1986 and as approved by the Boards of Directors of the U.K. Subsidiaries, insolvency practitioners from KPMG were appointed as Administrators for the U.K. Subsidiaries. The effect of the U.K. Subsidiaries’ entry into administration was to place their management, affairs, business and property of the U.K. Subsidiaries under the direct control of the Administrators. Accordingly, the Company deconsolidated the U.K. Subsidiaries, which comprised the U.K. reportable operating segment, as of February 25, 2019. The Company reported the historical results of operations and financial position of the U.K. reportable operating segment as discontinued operations in the Consolidated Financial Statements for all periods presented. The following table presents the results from the discontinued operations of the U.K. Subsidiaries included in the Consolidated Statement of Operations (in thousands): For the Year Ended December 31, 2019 2018 2017 Revenue $ 6,957 $ 49,238 $ 39,496 Provision for losses 1,703 21,632 13,660 Net revenue 5,254 27,606 25,836 Cost of providing services Advertising 775 8,970 5,495 Non-advertising costs of providing services 307 3,209 6,269 Total cost of providing services 1,082 12,179 11,764 Gross margin 4,172 15,427 14,072 Operating expense (income) Corporate, district and other 3,810 31,639 17,218 Interest income (4 ) (26 ) (12 ) Restructuring costs — — 7,393 Goodwill impairment — 22,496 — Loss on disposition 39,414 — — Total operating expense 43,220 54,109 24,599 Loss from operations of discontinued operations before income taxes (39,048 ) (38,682 ) (10,527 ) (Benefit) / provision for income tax (46,638 ) (170 ) 929 Income (loss) from discontinued operations $ 7,590 $ (38,512 ) $ (11,456 ) The effective tax rate for the year ending December 31, 2019 was 119.4% , and primarily relates to the worthlessness of the U.K. stock resulting in a U.S. tax benefit. The following table presents the aggregate carrying amounts of the assets and liabilities of the discontinued operations of the U.K. Subsidiaries (in thousands): December 31, December 31, ASSETS Cash $ — $ 9,859 Restricted cash — 3,384 Gross loans receivable — 25,256 Less: allowance for loan losses — (5,387 ) Loans receivable, net — 19,869 Prepaid expenses and other — 1,482 Other — 267 Total assets classified as discontinued operations in the Consolidated Balance Sheets $ — $ 34,861 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable and accrued liabilities $ — $ 8,136 Deferred revenue — 180 Accrued interest — (5 ) Deferred rent — 149 Other long-term liabilities — 422 Total liabilities classified as discontinued operations in the Consolidated Balance Sheets $ — $ 8,882 The following table presents cash flows of the discontinued operations of the U.K. Subsidiaries (in thousands): Year Ended December 31, 2019 2018 2017 Net cash (used in) provided by discontinued operating activities $ (504 ) $ 10,808 $ 9,666 Net cash used in discontinued investing activities (14,213 ) (27,891 ) (15,761 ) Net cash used in discontinued financing activities — — — |
SHARE REPURCHASE PROGRAM
SHARE REPURCHASE PROGRAM | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
SHARE REPURCHASE PROGRAM | SHARE REPURCHASE PROGRAM In April 2019, the Board of Directors authorized a share repurchase program providing for the repurchase of up to $50.0 million of its common stock. As discussed below, the repurchase program, which commenced in June 2019, was completed in February 2020. Purchases under the program were required to be made from time-to-time in the open market, in privately negotiated transactions, or both, at the Company's discretion and subject to market conditions and other factors. Any repurchased shares are available for use in connection with equity plans or other corporate purposes. The table below summarizes share repurchase activity during the year ended December 31, 2019 (in thousands, except for per share amounts and number of share amounts): Year Ended December 31, 2019 Total number of shares repurchased 3,614,541 Average price paid per share $ 12.52 Total value of shares repurchased $ 45,241 Total authorized repurchase amount for the period presented $ 50,000 Total value of shares repurchased 45,241 Total remaining authorized repurchase amount $ 4,759 As previously mentioned, the Company completed the $50.0 million share repurchase program in February 2020. Also in February 2020, the Company's Board of Directors authorized an additional share repurchase program providing for the repurchase of up to $25.0 million of its common stock. See Note 24, "Subsequent Events" for additional details. Separately, in August 2019, the Company entered into a Share Repurchase Agreement (the “Share Repurchase Agreement”) with FFL, a related party to the Company. Pursuant to the Share Repurchase Agreement, the Company repurchased 2,000,000 shares of its common stock, par value $0.001 per share, owned by FFL, in a private transaction at a purchase price equal to $13.55 per share of common stock. This transaction occurred outside of the share repurchase program authorized in April 2019. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Acquisition In December 2019, the Company entered into a Stock Purchase Agreement to acquire Ad Astra (the "Acquisition") for a base purchase price of $15.8 million . Ad Astra, a related party, discussed further in Note 18 - "Related Party Transactions" , provides account servicing and recovery and served as the Company's exclusive third-party servicer prior to the acquisition. The transaction was subject to customary adjustments for net-working capital, cash and debt, and closed on January 3, 2020 for total cash of $17.8 million . Ad Astra will be consolidated and included in the Condensed Consolidated Financial Statements beginning in the first quarter of 2020. The Acquisition will be accounted for as a business combination, subject to the provisions of ASC 805-10-50, Business Combinations. Due to the timing of the Acquisition, the Company is currently in process of completing the initial purchase accounting and has not made all of the remaining disclosures required by ASC 805 Business Combinations , such as the fair value of assets acquired and supplemental pro forma information, which will be disclosed in subsequent filings upon the completion of the initial purchase accounting. Share Repurchase Programs The Company completed the $50.0 million share repurchase program announced in April 2019 by repurchasing 455,255 remaining shares between January 1, 2020 through February 5, 2020, as disclosed below (in thousands, except per share and number of share amounts): January 1 - February 5 2020 Total number of shares repurchased 455,255 Average price paid per share $ 10.45 Total value of shares repurchased $ 4,759 On February 5, 2020, the Company's Board of Directors announced the authorization of a new share repurchase program for up to $25.0 million of its common stock. The share repurchase program will continue until completed or terminated. Under the program, shares may be repurchased in the open market or in privately negotiated transactions at times and amounts considered appropriate by CURO. The Company repurchased 51,302 shares between February 24, 2020 through March 6, 2020 (in thousands, except per share amounts and number of share amounts): February 24 - March 6 2020 Total number of shares repurchased 51,302 Average price paid per share $ 9.75 Total value of shares repurchased $ 500 Dividend On February 5, 2020, the Company's Board of Directors announced the initiation of a dividend program and declared its first quarterly cash dividend of $0.055 per share ( $0.22 per share annualized). The dividend was paid on March 2, 2020 to stockholders of record as of the close of business on February 18, 2020. New Credit Facility On February 4, 2020, the Company executed a non-binding letter of intent for an additional $200.0 million Non-Recourse Revolving Credit Facility to fund growing U.S. portfolios. The facility would have a 90% advance rate with a 5.75% LIBOR spread. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation The terms “CURO" and the “Company” refer to CURO Group Holdings Corp. and its direct and indirect subsidiaries as a combined entity, except where otherwise stated. The term "CFTC" refers to CURO Financial Technologies Corp., the Company's wholly-owned subsidiary, and its directly and indirectly owned subsidiaries as a consolidated entity, except where otherwise stated. CURO is a growth-oriented, technology-enabled, highly-diversified consumer finance company serving a wide range of underbanked consumers in the United States ("U.S."), Canada and, through February 25, 2019, the U.K. The Company has prepared the accompanying audited Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The Company qualifies as a smaller reporting company ("SRC") as defined by the Securities and Exchange Commission ("SEC"), which allows registrants to report information under scaled disclosure requirements. SRC status is determined on an annual basis as of the last business day of the most recently completed second fiscal quarter. Under these rules, the Company met the definition of an SRC as of June 30, 2019, and it will reevaluate as of June 30, 2020. U.K. Segment Financial Information Recast for Discontinued Operations On February 25, 2019, the Company placed its U.K. segment into administration, which resulted in treatment of the U.K. segment as discontinued operations for all periods presented. Throughout this report, current and prior period financial information is presented on a continuing operations basis, excluding the results and positions of the U.K. segment. See Note 22, "Discontinued Operations" for additional information. For a full recast of the 2018 Annual Report on Form 10-K on a discontinued operations basis, see the Company's Current Report on Form 8-K filed with the SEC on June 28, 2019. Initial Public Offering The Company completed an initial public offering ("IPO") in December 2017. Prior to the IPO, the Company effected a 36 -for-1 split of its common stock. CURO has retroactively adjusted all share and per share data for all periods presented to reflect the stock split as if the stock split had occurred at the beginning of the earliest period presented. See Note 13, "Stockholders' Equity" for additional information concerning the IPO and stock split. |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of CURO, its wholly-owned subsidiaries and Variable Interest Entities ("VIEs") that meet the requirements of consolidation. Intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of Consolidated Financial Statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of revenues and expenses during the periods reported. Some of the significant estimates that the Company has made in the accompanying Consolidated Financial Statements include allowances for loan losses, certain assumptions related to goodwill and intangibles, accruals related to self-insurance, Credit Services Organization ("CSO") liability for losses and estimated tax liabilities. Actual results may differ from those estimates. |
Revenue Recognition | Revenue Recognition CURO offers a broad range of consumer finance products including Unsecured Installment, Secured Installment, Open-End and Single-Pay loans. Revenue in the Consolidated Statements of Operations includes: interest income, finance charges, CSO fees, late fees, non-sufficient funds fees and other ancillary fees as permitted by applicable laws and pursuant to the customer agreements. Product offerings differ by jurisdiction and are governed by the laws in each separate jurisdiction. Installment loans include Secured Installment loans and Unsecured Installment loans. These loans are fully amortizing, with a fixed payment amount, which includes principal and accrued interest, due each period during the loan term. The loan terms for Installment loans can range up to 60 months depending on state or provincial regulations. The Company records revenue from Installment loans on a simple-interest basis. Accrued interest and fees are included in gross loans receivable in the Consolidated Balance Sheets as earned. CSO fees are recognized ratably over the term of the loan as earned. Open-End loans function much like a revolving line-of-credit, whereby the periodic payment is a fixed percentage of the customer’s outstanding loan balance, and there is no defined loan term. The Company records revenue from Open-End loans on a simple-interest basis. Accrued interest and fees are included in gross loans receivable in the Consolidated Balance Sheets. Single-Pay loans are primarily unsecured, short-term, small denomination loans, with a small portion being auto title loans, which allow a customer to obtain a loan using their car as collateral. Revenues from Single-Pay loan products are recognized each period on a constant-yield basis ratably over the term of each loan as earned. The Company defers recognition of the unearned fees the Company expects to collect based on the remaining term of the loan at the end of each reporting period. Check cashing fees, money order fees and other fees from ancillary products and services are generally recognized at the point-of-sale when the transaction is completed. The Company also earns revenue from the sale of credit protection insurance in the Canadian market, which are recognized ratably over the term of the loan. |
Cash and cash equivalents, and Restricted cash | Cash and cash equivalents The Company considers deposits in banks and short-term investments with original maturities of 90 days or less as cash and cash equivalents. Restricted Cash The Company's restricted cash includes deposits in collateral accounts with financial institutions, consumer deposits related to prepaid cards and checking account programs, and funds related to loan facilities disclosed in Note 5, "Variable Interest Entities" . |
Consumer Loans Receivable, Current and Past-Due Loans Receivable, Allowance for Loan Losses, and Credit Services Organization | Consumer Loans Receivable Consumer loans receivable are net of the allowance for loan losses and are comprised of Unsecured Installment, Secured Installment, Open-End and Single-Pay loans. Single-Pay loans are primarily comprised of payday loans and auto title loans. A payday loan transaction consists of providing a customer cash in exchange for the customer’s personal check or Automated Clearing House (“ACH”) authorization (in the aggregate amount of that cash plus a service fee), with an agreement to defer the presentment or deposit of that check or scheduled ACH withdrawal until the customer’s next payday, which is typically either two weeks or a month from the loan’s origination date. An auto title loan allows a customer to obtain a loan using the customer’s car as collateral for the loan, with a typical loan term of 30 days. Unsecured Installment, Secured Installment and Open-End loans require periodic payments of principal and interest. Installment loans are fully amortized loans with a fixed payment amount due each period during the term of the loan. Open-End loans function much like a revolving line-of-credit, whereby the periodic payment is a set percentage of the customer’s outstanding loan balance, and there is no defined loan term. The loan terms for Installment loans can range up to 60 months, depending on state regulations. Installment and Open-End loans are offered as both Secured auto title loans and as Unsecured loan products. The product offerings differ by jurisdiction and are governed by the laws in each separate jurisdiction. Current and Past-Due Loans Receivable CURO classifies loans receivable as either current or past-due. Single-Pay loans are considered past-due if a customer misses a scheduled payment, at which point the loan is charged-off to the allowance for loan losses. If a customer misses a scheduled payment for Installment and Open-End loans, the entire customer balance is classified as past-due. Installment and Open-End loans are charged-off when the loan has been contractually past-due for 90 consecutive days. All Unsecured and Secured Installment loans were impacted by a change in accounting estimate in the first quarter of 2017, while Open-End loans were impacted by the Q1 2019 Open-End Loss Recognition. These changes in accounting estimates are discussed immediately below. Q1 2019 Open-End Loss Recognition Change Effective January 1, 2019, the Company modified the timeframe over which it charges-off Open-End loans and made related refinements to its loss provisioning methodology. Prior to January 1, 2019, the Company deemed Open-End loans uncollectible and charged-off when a customer missed a scheduled payment and the loan was considered past-due. Because of the continued shift to Open-End loans in Canada and analysis of payment patterns on early-stage versus late-stage delinquencies, the Company revised its estimates and now consider Open-End loans uncollectible when the loan has been contractually past-due for 90 consecutive days. Consequently, past-due Open-End loans and related accrued interest now remain in loans receivable for 90 days before being charged off against the allowance for loan losses. All recoveries on charged-off loans are credited to the allowance for loan losses. Quarterly, the Company evaluates the adequacy of the allowance for loan losses compared to the related gross loans receivable balances that include accrued interest. The aforementioned change was treated as a change in accounting estimate for accounting purposes and applied prospectively beginning January 1, 2019, which the Company refers to throughout this Annual Report as the "Q1 2019 Open-End Loss Recognition Change". The change affects comparability to prior periods as follows: • Gross combined loans receivable : balances as of December 31, 2019 include $50.1 million of Open-End loans that are up to 90 days past-due with related accrued interest, while such balances for periods prior to March 31, 2019 do not include any past-due loans. • Revenues : for the year ended December 31, 2019, gross revenues include interest earned on past-due loan balances of approximately $49 million , while revenues in prior-year periods do not include comparable amounts. • Provision for Losses : prospectively from January 1, 2019, past-due, unpaid balances plus related accrued interest charge-off on day 91. Provision for losses is affected by NCOs (total charge-offs less total recoveries) plus changes to the Allowance for loan losses. Because NCOs prospectively include unpaid principal and up to 90 days of related accrued interest, NCO amounts and rates are higher and the Open-End Allowance for loan losses as a percentage of Open-End gross loans receivable is higher. The Open-End Allowance for loan losses as a percentage of Open-End gross loans receivable increased to 16.4% at December 31, 2019, compared to 9.6% at December 31, 2018. For Single-Pay loans, past-due loans are charged-off upon payment default and typically do not return to current for any subsequent payment activity. For Installment and Open-End loans, customers with payment delinquency of 90 consecutive days are charged off. Charged-off loans are never returned to current or performing and all subsequent activity is accounted for within recoveries in the Allowance for loan losses. If a past-due Installment loan customer makes payments sufficient to bring the account current for principal plus all accrued interest or fees pursuant to the original terms of the loan contract before becoming 90 consecutive days past-due, the underlying loan balance returns to current classification. Depending upon underlying state or provincial regulations, a borrower may be eligible for more than one outstanding loan. Allowance for Loan Losses The Company maintains an allowance for loan losses for loans and interest receivable at a level estimated to be adequate to absorb incurred losses based primarily on the Company's analysis of historical loss or charge-off rates for loans containing similar risk characteristics. The allowance for loan losses on the Company-Owned gross loans receivables reduces the outstanding gross loans receivables balance in the Consolidated Balance Sheets. The liability for estimated losses related to loans Guaranteed by the Company under CSO programs is reported in “Liability for losses on CSO lender-owned consumer loans” in the Consolidated Balance Sheets. Changes in either the allowance or the liability, net of charge-offs and recoveries, are recorded as “Provision for losses” in the Consolidated Statements of Operations. In addition to an analysis of historical loss and charge-off rates, the Company also considers delinquency trends and any macro-economic conditions that it believes may affect portfolio losses. If a loan is deemed to be uncollectible before it is fully reserved based on received information (e.g., receipt of customer bankruptcy notice or death), the Company charges off such loan at that time. Qualitative factors such as the impact of new loan products, changes to underwriting criteria or lending policies, new store development or entrance into new markets, changes in jurisdictional regulations or laws, recent credit trends and general economic conditions impact management’s judgment on the overall adequacy of the allowance for loan losses. Any recoveries on loans previously charged to the allowance are credited to the allowance when collected. Additionally, during the year ended December 31, 2018, the Company changed the estimated allowance for loan losses for Installment gross combined loans receivable. This was a prospective change in estimate affected by a change in accounting principle. Prior to the change in the estimate, the Company utilized historic collection experience by grouping accounts receivable aging for these products to assess losses inherent in the portfolio and incurred as of the balance sheet date. Given that the Company now has history on performance subsequent to the Q1 2017 Loss Recognition Change, the Company refined the estimation process to utilize charge-off and recovery rates and estimate losses inherent in the portfolio. Credit Services Organization Through the CSO programs, the Company acts as a CSO/credit access business ("CAB") on behalf of customers in accordance with applicable state laws. The Company currently offers loans through CSO programs in stores and online in the state of Texas. As a CSO, CURO earns revenue by charging the customer a fee ("CSO fee") for arranging an unrelated third-party to make a loan to that customer. When a customer executes an agreement with CURO under the CSO programs, the Company agrees, for a CSO fee payable to the Company by the customer, to provide certain services to the customer, one of which is to guarantee the customer’s obligation to repay the loan to the third-party lender. CSO fees are calculated based on the amount of the customer's outstanding loan. For CSO loans, each lender is responsible for providing the criteria by which the customer’s application is underwritten and, if approved, determining the amount of the customer loan. The Company is, in turn, responsible for assessing whether or not to guarantee the loan. This guarantee represents an obligation to purchase specific loans if they go in to default. Prior to May 2019, the Company operated as a CSO in Ohio. In July 2018, the Ohio legislature passed House Bill 123 which significantly limited permissible fees and other terms on short term loans in Ohio. As a result, the Company stopped operating as a CSO in Ohio in April 2019. CURO currently has relationships with three unaffiliated third-party lenders for CSO programs. The Company periodically evaluates the competitive terms of the unaffiliated third-party lender contracts and such evaluation may result in the transfer of volume and loan balances between lenders. The process does not require significant effort or resources outside the normal course of business and the Company believes the incremental cost of changing or acquiring new unaffiliated third-party lender relationships to be immaterial. As of December 31, 2019 , the maximum amount guaranteed by the Company under CSO programs was $62.7 million , compared to $66.9 million at December 31, 2018 . Should the Company be required to purchase any portion of the total amount of the loans guaranteed, the Company will attempt to recover some or all of the entire amount from the customers. CURO holds no collateral in respect of the guarantees. CURO estimates a liability for losses associated with the guaranty provided to the CSO lenders using assumptions and methodologies similar to the allowance for loan losses, which is recognized for the consumer loans. The liability for incurred losses on CSO loans guaranteed by the Company was $10.6 million and $12.0 million at December 31, 2019 and 2018 , respectively. CSO fees are calculated based on the amount of the customer’s outstanding loan. The Company complies with the applicable jurisdiction’s Credit Services Organization Act or a similar statue. These laws generally define the services that CURO can provide to consumers and require the Company to provide a contract to the customer outlining its services and related costs. For services provided under the CSO programs, the Company receives payments from customers on their scheduled loan repayment due dates. The CSO fee is earned ratably over the term of the loan as the customers make payments. If a loan is paid off early, no additional CSO fees are due or collected. The maximum CSO loan term is 180 days. During the years ended December 31, 2019 , 2018 and 2017, approximately 58.2% , 57.3% and 53.6% , respectively, of Unsecured Installment loans, and 54.3% , 54.5% and 53.6% , respectively, of Secured Installment loans originated under CSO programs were paid off prior to the original maturity date. The Company placed $6.2 million and $17.2 million in collateral accounts for the benefit of lenders at December 31, 2019 and December 31, 2018 , respectively, which is reflected in "Prepaid expenses and other" in the Consolidated Balance Sheets. The balances required to be maintained in these collateral accounts vary by lender, typically based on a percentage of the outstanding loan balances held by the lender. The percentage of outstanding loan balances required for collateral is negotiated between the Company and each such lender. Since CSO loans are made by a third-party lender, they are not included in the Company's Consolidated Balance Sheets as loans receivable. CSO fees receivable are included in “Prepaid expense and other” in the Consolidated Balance Sheets. The Company receives cash from customers for these fees on their scheduled loan repayment due dates. |
Income Taxes | Income Taxes The Company utilizes the asset and liability method of accounting for income taxes as set forth in ASC 740. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. In determining the need for valuation allowances, the Company considers projected future taxable income and the availability of tax planning strategies. If in the future the Company determines that it would not be able to realize the recorded deferred tax assets, an increase in the valuation allowance would be recorded, decreasing earnings in the period in which such determination is made. The Company is subject to income taxes throughout the U.S. and Canada and, prior to deconsolidation of the U.K. subsidiaries, in the U.K. The Company recognizes the financial statement benefits for uncertain tax positions as set forth in ASC 740 only if it is more-likely-than-not to be sustained in the event of challenges by relevant taxing authorities based on the technical merit of each tax position. The amounts of uncertain tax positions recognized are the largest benefits that have a greater than 50 percent likelihood of being realized upon settlement with the relevant tax authorities. Income Taxes A deferred tax asset or liability is recognized for the anticipated future tax consequences of temporary differences between the tax basis of assets or liabilities and their reported amounts in the financial statements and for operating loss and tax credit carryforwards. A valuation allowance is provided when, in the opinion of management, it is more likely than not that some portion or all of a deferred tax asset will not be realized. Realization of the deferred tax assets is dependent on the Company's ability to generate sufficient future taxable income and, if necessary, execution of tax planning strategies. In the event CURO determines that future taxable income, taking into consideration tax planning strategies, may not generate sufficient taxable income to fully realize net deferred tax assets, the Company may be required to establish or increase valuation allowances by a charge to income tax expense in the period such a determination is made, which may have a material impact on the Consolidated Statements of Operations. The Company measures deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which they expect those temporary differences to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date and it may have a material impact on the Consolidated Statements of Operations. CURO follows accounting guidance which prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under this guidance, tax positions are initially recognized in the financial statements when it is more likely than not that the position will be sustained upon examination by the tax authorities. Such tax positions are initially and subsequently measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and all relevant facts. Application of this guidance requires numerous estimates based on available information. The Company considers many factors when evaluating and estimating tax positions and tax benefits, and the recognized tax positions and tax benefits may not accurately anticipate actual outcomes. As the Company obtains additional information, they may need to adjust the recognized tax positions and tax benefits. |
Variable Interest Entity | Variable Interest Entity As part of the Company's funding strategy and efforts to support the liquidity from sources other than the traditional capital market sources, the Company established a securitization program through Non-Recourse U.S. and Canada SPV Facilities. The Company entered into the Non-Recourse Canada SPV Facility during the third quarter of 2018 and fully extinguished the Non-Recourse U.S. SPV Facility during the fourth quarter of 2018. The Company transferred certain consumer loan receivables to a wholly-owned, bankruptcy-remote special purpose subsidiary (“VIE”) that issues term notes backed by the underlying consumer loan receivables which are serviced by another wholly-owned subsidiary. The Company has the ability to direct the activities of the VIE that most significantly impact the economic performance of the entities as the servicer of the securitized loan receivables. Additionally, CURO has the right to receive residual payments, which exposes the Company to the potential for significant losses and returns. Accordingly, the Company determined that they are the primary beneficiary of the VIE and are required to consolidate them. See Note 5, "Variable Interest Entities" for further discussion of the Company's VIEs. |
Derivatives | Derivatives As foreign currency exchange rates change, translation of the financial results of the Canadian operations into U.S. Dollars will be impacted. Operations in Canada represent a significant portion of total operations, and as a result, material changes in the currency exchange rates as between these two countries could have a significant impact on the Company's consolidated financial condition, results of operations or cash flows. From time-to-time, the Company may elect to purchase derivatives to hedge exposures that would qualify as a cash flow or fair value hedge. All other derivatives that are entered into for economic reasons are carried at fair value with the resulting change in fair value recorded the results of operations. As of December 31, 2019 and 2018, the Company had $112.2 million and $107.5 million , respectively, in variable interest rate debt outstanding related to the Non-Recourse Canada SPV Facility. In August 2018, the Company entered into a four -year C$175.0 million interest rate cap agreement with the Royal Bank of Canada that capped the related three-month CDOR rate at 4.50% beginning in September 2018. During the year ended December 31, 2019 and 2018, the three-month CDOR rate did not exceed 4.50% and did not have any impact on the Company's Statement of Operations. The Company records derivative instruments at fair value as either an asset or liability on the Consolidated Balance Sheet. Changes in the options intrinsic value, to the extent that they are effective as a hedge, are recorded in Other Comprehensive Income (Loss). For derivatives that qualify and have been designated as cash flow or fair value hedges for accounting purposes, the changes in fair value have no net impact on earnings, to the extent the derivative is considered perfectly effective in achieving offsetting changes in fair value or cash flows attributable to the risk being hedged, until the hedged item is recognized in earnings (commonly referred to as the “hedge accounting” method). |
Property and Equipment | Property and Equipment Property and equipment is carried at cost less accumulated depreciation and amortization, except for property and equipment accounted for as part of a business combination, which is carried at fair value as of the acquisition date less accumulated depreciation and amortization. Expenditures for significant additions and improvements are capitalized. Maintenance repairs and renewals, that do not materially add to the fixed asset's value or appreciably prolong its life, are charged to expense as incurred. Gains and losses on dispositions of property and equipment are included in results of operations. The estimated useful lives for furniture, fixtures and equipment are five to seven years. The estimated useful lives for leasehold improvements are the shorter of the estimated useful life of the asset, or the term of the lease, and can vary from one year to 15 years. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the depreciable or amortizable assets. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination at the time of acquisition. In accordance with Accounting Standards Codification ("ASC") 350 Intangibles - Goodwill and Other ("ASC 350"), the Company performs impairment testing for goodwill and indefinite-lived intangible assets annually, as of October 1st, or whenever indicators of impairment exist. An impairment would occur if the carrying amount of a reporting unit exceeded the fair value of that reporting unit. These events or circumstances could include a significant change in the business climate, a change in strategic direction, legal factors, operating performance indicators, a change in the competitive environment, the sale or disposition of a significant portion of a reporting unit or economic outlook. The Company did not record any impairment losses on goodwill from continuing operations during the years ended December 31, 2019, 2018 and 2017. Goodwill The annual impairment review for goodwill consists of performing a qualitative assessment to determine whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount as a basis for determining whether or not further testing is required. The Company may elect to bypass the qualitative assessment and proceed directly to the two-step process, for any reporting unit, in any period. The Company can resume the qualitative assessment for any reporting unit in any subsequent period. If the Company determines, on the basis of qualitative factors, that it is more likely than not that the fair value of the reporting unit is less than the carrying amount, the Company will then apply a two-step process of (i) determining the fair value of the reporting unit and (ii) comparing it to the carrying value of the net assets allocated to the reporting unit. When performing the two-step process, if the fair value of the reporting unit exceeds it carrying value, no further analysis or write-down of goodwill is required. In the event the estimated fair value of a reporting unit is less than the carrying value, the Company would recognize an impairment loss equal to such excess, which could significantly and adversely impact reported results of operations and stockholders’ equity. During the fourth quarter of 2019, the Company performed a quantitative assessment for the U.S. and Canada reporting units. Management concluded that the estimated fair values of these two reporting units were greater than their respective carrying values. As such, no further analysis was required for these reporting units. Refer to Note 4, "Goodwill and Intangibles" for further information. During the fourth quarter of 2018, the Company performed the qualitative assessment for the U.S. and Canada reporting units. Management concluded that the estimated fair values of these two reporting units were greater than their respective carrying values. As such, no further analysis was required for these reporting units. Other Intangible Assets The Company's identifiable intangible assets, resulting from business combinations and internally developed capitalized software, consist of trade names, customer relationships and computer software. The Company applied the guidance under ASC 350, to software that is purchased or internally developed. Under ASC 350, eligible internal and external costs incurred for the development of computer software applications, as well as for upgrades and enhancements that result in additional functionality of the applications, are capitalized to "Other Intangible Assets, net of accumulated amortization" in the Consolidated Balance Sheets. Internal and external training and maintenance costs are charged to expense as incurred or over the related service period. When a software application is placed in service, the Company begins amortizing the related capitalized software costs using the straight-line method over its estimated useful life, which ranges from three to 10 years. The “Cash Money” trade name was determined to be an intangible asset with an indefinite life. Intangible assets with indefinite lives are not amortized, but instead are tested annually for impairment and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset might not be recoverable. Impairment of identifiable intangible assets with indefinite lives occurs when the fair value of the asset is less than its carrying amount. If deemed impaired, the asset’s carrying amount is reduced to its estimated fair value. No intangible impairments were recorded during the years ended December 31, 2019, 2018 or 2017. See Note 4, "Goodwill and Intangibles" for further information. The Company's finite lived intangible assets are amortized over their estimated economic benefit period, generally from three to 10 years. The Company reviews the intangible assets for impairment annually in the fourth quarter or whenever events or changes in circumstances have indicated that the carrying amount of these assets might not be recoverable. If the Company were to determine that events and circumstances warrant a change to the estimate of an identifiable intangible asset’s remaining useful life, then the remaining carrying amount of the identifiable intangible asset would be amortized prospectively over that revised remaining useful life. Additionally, information resulting from the annual assessment, or other events and circumstances, may indicate that the carrying value of one or more identifiable intangible assets is not recoverable which would result in recognition of an impairment charge. There were no changes in events or circumstances related to the Company's continuing operations that caused the Company to review the finite lived intangible assets for impairment for the years ended December 31, 2019, 2018 or 2017. Additionally, no impairments were recorded during the years ended December 31, 2019, 2018 or 2017. See Note 4, "Goodwill and Intangibles" for further information. |
Business Combination Accounting | Business Combination Accounting CURO has acquired businesses in the past, and may acquire additional businesses in the future. Business combination accounting requires that the Company determines the fair value of all assets acquired, including identifiable intangible assets, liabilities assumed and contingent consideration issued in a business combination. The cost of the acquisition is allocated to these assets and liabilities in amounts equal to the estimated fair value of each asset and liability as of the acquisition date, and any remaining acquisition cost is classified as goodwill. This allocation process requires extensive use of estimates and assumptions, including estimates of future cash flows to be generated by the acquired assets. The Company engages third-party appraisal firms to assist in fair value determination when appropriate. The acquisitions may also include contingent consideration, or earn-out provisions, which provide for additional consideration to be paid to the seller if certain conditions are met in the future. These earn-out provisions are estimated and recognized at fair value at the acquisition date based on projected earnings or other financial metrics over specified future periods. These estimates are reviewed during each subsequent reporting period and adjusted based upon actual results. Acquisition-related costs for potential and completed acquisitions are expensed as incurred and included in "Corporate, district and other expenses" in the Consolidated Statements of Operations. Goodwill is initially valued based on the excess of the purchase price of a business combination over the fair value of the acquired net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Intangible assets other than goodwill are initially valued at fair value. When appropriate, the Company utilizes independent valuation experts to advise and assist in determining the fair value of the identified intangible assets acquired in connection with a business acquisition and in determining appropriate amortization methods and periods for those intangible assets. Any contingent consideration included as part of the purchase is recognized at its fair value on the acquisition date. |
Deferred Financing Charges | Deferred Financing Costs Deferred financing costs consist of debt issuance costs incurred in obtaining financing. These costs are presented in the Consolidated Balance Sheets as a direct reduction from the carrying amount of associated debt, consistent with discounts or premiums. The effective interest rate method is used to amortize the deferred financing costs over the life of the Senior Secured Notes and the straight-line method is used to amortize the deferred financing costs of the Non-Recourse SPV facilities. See Note 9, "Debt" for additional details on the Company's capital resources. |
Fair Value Measurements | Fair Value Measurements The Company determines fair value measurements of financial and non-financial assets and liabilities in accordance with FASB ASC 820, Fair Value Measurements and Disclosures . This guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (also referred to as an exit price). This guidance also establishes a framework for measuring fair value and expands disclosures about fair value measurements. The standard applies whenever other standards require (or permit) assets or liabilities to be measured at fair value. |
Concentration Risk | Concentration Risk Financial instruments that potentially subject the Company to concentrations of credit risk primarily consist of its loans receivable. Concentrations of credit risk with respect to loans receivable are limited due to the large number of customers comprising the Company's customer base. Revenues originated in Texas, California and Ontario represented approximately 24.6% , 18.4% and 13.6% , respectively, of the Company's consolidated revenues for the year ended December 31, 2019 . Revenues originated in Texas, California and Ontario represented approximately 26.0% , 19.2% and 11.5% , respectively, of the Company's consolidated revenues for the year ended December 31, 2018 . To the extent that laws and regulations are passed that affect the manner in which the Company conducts business in any one of those markets, its financial condition, results of operations and cash flows could be adversely affected. Additionally, the Company's ability to meet its financial obligations could be negatively impacted. The Company holds cash at major financial institutions that often exceed FDIC insured limits. The Company manages its concentration risk by placing cash deposits in high quality financial institutions and by periodically evaluating the credit quality of the financial institutions holding such deposits. Historically, the Company has not experienced any losses due to such cash concentration. |
Operating Leases | Operating Leases The Company has entered into operating leases for store locations and corporate offices, some of which contain provisions for future rent increases or periods in which rent payments are reduced (abated). As of January 1, 2019, the Company adopted ASU 2016-02, Leases ("Topic 842") which requires leases to be recognized on the balance sheet with the present value of lease payments over the lease term at the commencement date to be expensed. See "Recently Adopted Accounting Pronouncements", below, and Note 17, "Leases" for required disclosures by Topic 842. Prior to January 1, 2019, in accordance with US GAAP, the Company recorded monthly rent expense equal to the total of the payments due over the lease term, divided by the number of months of the lease term. The difference between rent expense recorded and the amount paid was charged to "Deferred rent" in the Consolidated Balance Sheets. |
Advertising Costs | Advertising Costs —Advertising costs are expensed as incurred. Advertising Costs Advertising costs are expensed as incurred. |
Share-Based Compensation | Share-Based Compensation CURO accounts for share-based compensation expense for awards to employees and directors at the estimated fair value on the grant date. The Company determines the fair value of stock option grants using the Black-Scholes option pricing model, which requires CURO to make several assumptions including, but not limited to, the risk-free interest rate and the expected volatility of publicly-traded stocks in the financial services industry. The expected option term is calculated using the average of the vesting period and the original contractual term. For restricted stock units ("RSUs"), the value of the award is calculated using the closing market price of the common stock on the grant date for time-based RSUs and using the Monte Carlo simulation pricing model for the market-based RSUs. The Company recognizes the estimated fair value of share-based awards as compensation expense on a straight-line basis over the vesting period. The Company accounts for forfeitures as they occur for all share-based awards. In accordance with ASC 718, Compensation - Stock Compensation , the Company may choose, upon vesting of employees' RSUs, to return shares of common stock underlying the vested RSUs to the Company in satisfaction of employees' tax withholding obligations (collectively, "net-share settlements") rather than requiring shares of common stock to be sold on the open market to satisfy these tax withholding obligations. The total number of shares of common stock returned to the Company is based on the closing price of the Company's common stock on the applicable vesting date. These net-share settlements reduced the number of shares of common stock that would have otherwise been outstanding on the open market, and the cash CURO paid to satisfy the employee portion of the tax withholding obligations are reflected as a reduction to "Paid-in capital" in the Company's Consolidated Balance Sheets and Consolidated Statements of Changes in Equity. |
Foreign Currency Translation | Foreign Currency Translation The Canadian dollar is considered the functional currency for operations in Canada. All balance sheet accounts are translated into U.S. dollars ("USD") at the exchange rate in effect at each Balance Sheet date. The Statements of Operations are translated at the average rates of exchange during each period. The Company has determined that certain intercompany balances are long-term in nature, and therefore, currency translation adjustments related to those accounts are recorded as a component of "Accumulated other comprehensive (loss)" in the Statements of Stockholders' Equity. For intercompany balances that are settled on a regular basis, currency translation adjustments related to those accounts are recorded as a component of "Corporate, district and other expenses" in the Consolidated Statements of Operations. |
Legal and Other Commitments and Contingencies | Legal and Other Commitments and Contingencies The Company is subject to litigation in the normal course of its business. The Company applies the provisions as defined in the guidance related to accounting for contingencies in determining the recognition and measurement of expense recognition associated with legal claims against the Company. Management uses guidance from internal and external legal counsel on the potential outcome of litigation in determining the need to record liabilities for potential losses and the disclosure of pending legal claims. |
Recently Adopted and Issued Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements ASU 2016-02 In February 2016, the Financial Accounting Standards Board ("FASB") established Topic 842, Leases , by issuing ASU No. 2016-02, which requires lessees to recognize leases on the balance sheet and disclose key information about leasing arrangements. The Company adopted the standard as of January 1, 2019 using the modified retrospective method, also known as the transition relief method, permitted under ASU 2018-11, which allows companies to retain the comparative prior period presentation method in the period of adoption. The Company elected the package of practical expedients permitted under the transition guidance which, among other things, permits companies to not reassess prior conclusions on lease identification, lease classification and initial direct costs. Under the practical expedient package, the Company also elected to combine lease and non-lease components and to exclude short-term leases, defined as having an initial term of 12 months or less, from the Consolidated Balance Sheets. The Company did not elect the hindsight practical expedient. As of December 31, 2019 , the Company held right of use assets ("ROU assets") and operating lease liabilities ("lease liabilities") of $117.5 million and $125.0 million , respectively. Prepaid rent of $2.7 million and deferred rent of $10.9 million were included in ROU assets and lease liabilities, respectively, at the time of adoption. See Note 17 - "Leases" for additional information and disclosures required by Topic 842. ASU 2018-02 In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive income ("ASU 2018-02"), which permits the reclassification to retained earnings of disproportionate tax effects in accumulated other comprehensive income (loss) caused by the Tax Cuts and Jobs Act of 2017 ("2017 Tax Act"). The Company adopted ASU 2018-02 as of January 1, 2019, which did not have a material impact on the Consolidated Financial Statements. Recently Issued Accounting Pronouncements Not Yet Adopted Accounting Pronouncements Related to the Current Expected Credit Loss ("CECL") Standard ASU 2016-13 In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” and subsequent amendments to the guidance: ASU 2018-19 in November 2018, ASU 2019-04 in April 2019, ASU 2019-05 in May 2019, and ASU 2019-10 and ASU 2019-11 in November 2019. The standard, as amended, changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard will replace the current “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. For available-for-sale debt securities, entities will be required to record allowances rather than reduce the carrying amount, as they currently do under the other-than-temporary impairment model. The standard also simplifies the accounting model for purchased credit-impaired debt securities and loans. The amendment will affect loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. ASU 2019-04 clarifies that equity instruments without readily determinable fair values for which an entity has elected the measurement alternative should be remeasured to fair value as of the date that an observable transaction occurred. ASU 2019-05 provides an option to irrevocably elect to measure certain individual financial assets at fair value instead of amortized cost. ASU 2019-10 amends the mandatory effective date for ASU 2016-13. The amendments are effective for fiscal years beginning after December 15, 2022 for entities that are eligible to be defined by the SEC as a SRC, for which the Company qualifies. ASU 2019-11 provides clarity and improves the codification to ASU 2016-13. The amendments should be applied on either a prospective transition or modified-retrospective approach depending on the subtopic. As issued, ASU 2016-13 is effective for annual periods beginning after December 15, 2019, and interim periods therein. Early adoption is permitted for annual periods beginning after December 15, 2018, and interim periods therein. The Company is evaluating its alternatives with respect to the available accounting methods under ASU 2016‑13, including the fair value option. If the fair value option is not utilized, adoption of ASU 2016-13 will increase the allowance for credit losses with a resulting negative adjustment to retained earnings on the date of adoption. The Company expects to defer the adoption of ASU 2016-13 until at least January 1, 2021 as permitted under ASU 2019-10. The Company is currently assessing the impact the adoption of ASU 2016-13 will have on the Consolidated Financial Statements. ASU 2019-12 In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” (Topic 740). The ASU intends to simplify various aspects related to accounting for income taxes and removes certain exceptions to the general principles in the standard. Additionally, the ASU clarifies and amends existing guidance to improve consistent application of its requirements. The amendments of the ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The adoption of ASU 2019-12 is not expected to have a material impact on the Consolidated Financial Statements. ASU 2018-15 In August 2018, the FASB issued ASU 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract (“ASU 2018-15”). ASU 2018-15 requires implementation costs incurred by customers in cloud computing arrangements to be deferred over the noncancellable term of the cloud computing arrangements plus any optional renewal periods (i) that are reasonably certain to be exercised by the customer or (ii) for which exercise of the renewal option is controlled by the cloud service provider. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. The standard can be adopted either using the prospective or retrospective transition approach. The Company is currently assessing the impact that adoption of ASU 2018-15 will have on the Consolidated Financial Statements. ASU 2018-13 In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which amends ASC 820, Fair Value Measurement . ASU 2018-13 modifies the disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. The provisions of ASU 2018-13 are effective for all entities for fiscal years beginning after December 15, 2019, and interim periods therein. Early adoption is permitted. An entity is permitted to early adopt any removed or modified disclosures upon issuance of ASU 2018-13 and delay adoption of the additional disclosures until their effective date. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. The adoption of ASU 2018-13 is not expected to have a material impact on the Consolidated Financial Statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Cash | The following table provides a reconciliation of cash and restricted cash to amounts reported within the Consolidated Balance Sheets (in thousands): December 31, 2019 2018 2017 Cash and cash equivalents $ 75,242 $ 61,175 $ 153,483 Restricted cash (includes restricted cash of consolidated VIEs of $17,427 and $12,840 as of December 31, 2019 and 2018, respectively) 34,779 25,439 8,548 Total cash, cash equivalents and restricted cash from continuing operations 110,021 86,614 162,031 Cash and restricted cash from discontinued operations — 13,243 12,460 Total cash, cash equivalents and restricted cash used in the Statements of Cash Flows $ 110,021 $ 99,857 $ 174,491 |
Schedule of Restricted Cash | The following table provides a reconciliation of cash and restricted cash to amounts reported within the Consolidated Balance Sheets (in thousands): December 31, 2019 2018 2017 Cash and cash equivalents $ 75,242 $ 61,175 $ 153,483 Restricted cash (includes restricted cash of consolidated VIEs of $17,427 and $12,840 as of December 31, 2019 and 2018, respectively) 34,779 25,439 8,548 Total cash, cash equivalents and restricted cash from continuing operations 110,021 86,614 162,031 Cash and restricted cash from discontinued operations — 13,243 12,460 Total cash, cash equivalents and restricted cash used in the Statements of Cash Flows $ 110,021 $ 99,857 $ 174,491 |
PREPAID EXPENSES AND OTHER (Tab
PREPAID EXPENSES AND OTHER (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Components of Prepaid Expenses and Other Assets | Components of Prepaid expenses and other assets were as follows (in thousands): December 31, 2019 December 31, 2018 Settlements and collateral due from third-party lenders $ 6,156 $ 17,205 Fees receivable from customers under CSO programs 14,564 13,771 Prepaid expenses 4,546 6,456 Other assets 10,624 6,156 Total prepaid expenses and other $ 35,890 $ 43,588 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Classification of Property and Equipment | The classification of property and equipment was as follows (in thousands): December 31, 2019 December 31, 2018 Leasehold improvements $ 134,574 $ 126,903 Furniture, fixtures and equipment 37,726 34,896 Property and equipment, gross 172,300 161,799 Accumulated depreciation and amortization (101,489 ) (85,049 ) Property and equipment, net $ 70,811 $ 76,750 |
GOODWILL AND INTANGIBLES (Table
GOODWILL AND INTANGIBLES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Change in the Carrying Amount of Goodwill | The change in the carrying amount of Goodwill by operating segment for the years ended December 31, 2019 and 2018 was as follows (in thousands): U.S. Canada Total Goodwill at December 31, 2017 $ 91,131 $ 30,516 $ 121,647 Foreign currency translation - 2018 — (2,366 ) (2,366 ) Goodwill at December 31, 2018 91,131 28,150 119,281 Foreign currency translation - 2019 — 1,328 1,328 Goodwill at December 31, 2019 91,131 29,478 120,609 |
Identifiable Intangible Assets, Finite-Lived | Identifiable intangible assets consisted of the following: December 31, 2019 December 31, 2018 Weighted-Average Remaining Life (Years) Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Assets not subject to amortization Trade name — $ 22,357 $ — $ 22,357 $ 21,350 $ — $ 21,350 Assets subject to amortization Customer relationships — 8,982 (8,982 ) — 18,299 (17,643 ) 656 Computer software 9.2 26,328 (14,758 ) 11,570 24,051 (16,273 ) 7,778 Balance, end of year $ 57,667 $ (23,740 ) $ 33,927 $ 63,700 $ (33,916 ) $ 29,784 |
Identifiable Intangible Assets, Indefinite-Lived | Identifiable intangible assets consisted of the following: December 31, 2019 December 31, 2018 Weighted-Average Remaining Life (Years) Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Assets not subject to amortization Trade name — $ 22,357 $ — $ 22,357 $ 21,350 $ — $ 21,350 Assets subject to amortization Customer relationships — 8,982 (8,982 ) — 18,299 (17,643 ) 656 Computer software 9.2 26,328 (14,758 ) 11,570 24,051 (16,273 ) 7,778 Balance, end of year $ 57,667 $ (23,740 ) $ 33,927 $ 63,700 $ (33,916 ) $ 29,784 |
Estimated Future Amortization Expense Related to Intangible Assets Held | The following table outlines the estimated future amortization expense related to intangible assets held at December 31, 2019 for each of the following five fiscal years (in thousands): Year Ending December 31, 2020 $ 2,065 2021 1,508 2022 838 2023 519 2024 519 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of the Carrying Amounts of Consolidated VIEs' Assets and Liabilities | The carrying amounts of consolidated VIEs' assets and liabilities associated with the Company's special purpose subsidiaries were as follows (in thousands): December 31, 2019 December 31, 2018 Assets Restricted cash $ 17,427 $ 12,840 Loans receivable less allowance for loan losses 220,067 136,187 Total Assets $ 237,494 $ 149,027 Liabilities Accounts payable and accrued liabilities $ 13,462 $ 4,980 Deferred revenue 46 40 Accrued interest 871 831 Intercompany payable 69,639 44,330 Debt 112,221 107,479 Total Liabilities $ 196,239 $ 157,660 |
LOANS RECEIVABLE AND REVENUE (T
LOANS RECEIVABLE AND REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Summary of Revenue by Product | The following table summarizes revenue by product (in thousands): Year Ended December 31, 2019 2018 2017 Unsecured Installment $ 530,730 $ 523,282 $ 454,758 Secured Installment 110,513 110,677 100,981 Open-End 245,256 141,963 73,496 Single-Pay 191,449 218,992 255,170 Ancillary 63,849 50,159 39,732 Total revenue (1) $ 1,141,797 $ 1,045,073 $ 924,137 (1) Includes revenue from CSO programs of $281.6 million, $283.0 million and $256.1 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Summary of Loans Receivable by Product and Related Delinquent Loans | The following tables summarize loans guaranteed by the Company under CSO programs and the related delinquent receivables (in thousands): December 31, 2019 Unsecured Installment Secured Installment Total Current loans receivable guaranteed by the Company $ 61,840 $ 1,944 $ 63,784 Delinquent loans receivable guaranteed by the Company 12,477 392 12,869 Total loans receivable guaranteed by the Company 74,317 2,336 76,653 Less: Liability for losses on CSO lender-owned consumer loans (10,553 ) (70 ) (10,623 ) Loans receivable guaranteed by the Company, net $ 63,764 $ 2,266 $ 66,030 December 31, 2019 Unsecured Installment Secured Installment Total Delinquent loans receivable 0-30 days past-due $ 10,392 $ 326 $ 10,718 31-60 days past-due 1,256 40 1,296 61 + days past-due 829 26 855 Total delinquent loans receivable $ 12,477 $ 392 $ 12,869 December 31, 2018 Unsecured Installment Secured Installment Total Current loans receivable guaranteed by the Company $ 65,743 $ 2,504 $ 68,247 Delinquent loans receivable guaranteed by the Company 11,708 446 12,154 Total loans receivable guaranteed by the Company 77,451 2,950 80,401 Less: Liability for losses on CSO lender-owned consumer loans (11,582 ) (425 ) (12,007 ) Loans receivable guaranteed by the Company, net $ 65,869 $ 2,525 $ 68,394 December 31, 2018 Unsecured Installment Secured Installment Total Delinquent loans receivable 0-30 days past-due $ 9,684 $ 369 $ 10,053 31-60 days past-due 1,255 48 1,303 61 + days past-due 769 29 798 Total delinquent loans receivable $ 11,708 $ 446 $ 12,154 The following tables summarize loans receivable by product and the related delinquent loans receivable (in thousands): December 31, 2019 Single-Pay (1) Unsecured Installment Secured Installment Open-End Total Current loans receivable $ 81,447 $ 117,682 $ 70,565 $ 285,452 $ 555,146 Delinquent loans receivable — 43,100 17,510 50,072 110,682 Total loans receivable 81,447 160,782 88,075 335,524 665,828 Less: allowance for losses (5,869 ) (35,587 ) (10,305 ) (55,074 ) (106,835 ) Loans receivable, net $ 75,578 $ 125,195 $ 77,770 $ 280,450 $ 558,993 (1) Of the $81.4 million of Single-Pay receivables, $22.4 million relate to mandated extended payment options for certain Canada Single-Pay loans. December 31, 2019 Unsecured Installment Secured Installment Open-End Total Delinquent loans receivable 0-30 days past-due $ 15,369 $ 8,039 $ 21,823 $ 45,231 31-60 days past-due 12,403 4,885 13,191 30,479 61 + days past-due 15,328 4,586 15,058 34,972 Total delinquent loans receivable $ 43,100 $ 17,510 $ 50,072 $ 110,682 December 31, 2018 Single-Pay (1) Unsecured Installment Secured Installment Open-End Total Current loans receivable $ 80,823 $ 141,318 $ 75,583 $ 207,333 $ 505,057 Delinquent loans receivable — 49,085 17,389 — 66,474 Total loans receivable 80,823 190,403 92,972 207,333 571,531 Less: allowance for losses (4,189 ) (37,716 ) (12,191 ) (19,901 ) (73,997 ) Loans receivable, net $ 76,634 $ 152,687 $ 80,781 $ 187,432 $ 497,534 (1) Of the $80.8 million of Single-Pay receivables, $23.7 million relate to mandated extended payment options for certain Canada Single-Pay loans. December 31, 2018 Unsecured Installment Secured Installment Total Delinquent loans receivable 0-30 days past-due $ 17,848 $ 7,870 $ 25,718 31-60 days past-due 14,705 4,725 19,430 61 + days past-due 16,532 4,794 21,326 Total delinquent loans receivable $ 49,085 $ 17,389 $ 66,474 |
Summary of the Activity in the Allowance for Loan Losses | The following table summarizes activity in the allowance for loan losses (dollars in thousands): Year Ended December 31, 2018 Single-Pay Unsecured Installment Secured Installment Open-End Other Total Balance, beginning of period $ 5,204 $ 39,025 $ 13,472 $ 6,426 $ — $ 64,127 Charge-offs (164,342 ) (141,963 ) (46,996 ) (113,150 ) (5,913 ) (472,364 ) Recoveries 115,118 20,175 10,041 41,457 3,603 190,394 Net charge-offs (49,224 ) (121,788 ) (36,955 ) (71,693 ) (2,310 ) (281,970 ) Provision for losses 48,575 120,469 35,674 86,299 2,310 293,327 Effect of foreign currency translation (366 ) 10 — (1,131 ) — (1,487 ) Balance, end of period $ 4,189 $ 37,716 $ 12,191 $ 19,901 $ — $ 73,997 Allowance for loan losses as a percentage of gross loan receivables 5.2 % 19.8 % 13.1 % 9.6 % N/A 12.9 % The following table summarizes activity in the allowance for loan losses (dollars in thousands): Year Ended December 31, 2019 Single-Pay Unsecured Installment Secured Installment Open-End Other Total Balance, beginning of period $ 4,189 $ 37,716 $ 12,191 $ 19,901 $ — $ 73,997 Charge-offs (155,250 ) (158,251 ) (47,195 ) (108,319 ) (5,445 ) (474,460 ) Recoveries 109,124 23,660 10,744 19,061 3,284 165,873 Net charge-offs (46,126 ) (134,591 ) (36,451 ) (89,258 ) (2,161 ) (308,587 ) Provision for losses 47,739 132,433 34,565 123,726 2,161 340,624 Effect of foreign currency translation 67 29 — 705 — 801 Balance, end of period $ 5,869 $ 35,587 $ 10,305 $ 55,074 $ — $ 106,835 Allowance for loan losses as a percentage of gross loan receivables 7.2 % 22.1 % 11.7 % 16.4 % N/A 16.0 % |
Summary of Activity in Credit Services Organization Guarantee Liability | The following table summarizes activity in the liability for losses on CSO lender-owned consumer loans (in thousands): Year Ended December 31, 2019 Unsecured Installment Secured Installment Total Balance, beginning of period $ 11,582 $ 425 $ 12,007 Charge-offs (161,557 ) (3,610 ) (165,167 ) Recoveries 33,248 2,608 35,856 Net charge-offs (128,309 ) (1,002 ) (129,311 ) Provision for losses 127,280 647 127,927 Balance, end of period $ 10,553 $ 70 $ 10,623 The following table summarizes activity in the liability for losses on CSO lender-owned consumer loans (in thousands): Year Ended December 31, 2018 Unsecured Installment Secured Installment Total Balance, beginning of period $ 17,073 $ 722 $ 17,795 Charge-offs (165,266 ) (4,469 ) (169,735 ) Recoveries 32,341 3,333 35,674 Net charge-offs (132,925 ) (1,136 ) (134,061 ) Provision for losses 127,434 839 128,273 Balance, end of period $ 11,582 $ 425 $ 12,007 |
Summary of Activity in Allowance for Loan Losses, Credit Services Organization Guarantee Liability | The following table summarizes activity in the allowance for loan losses and the liability for losses on CSO lender-owned consumer loans, in total (in thousands): Year Ended December 31, 2019 Single-Pay Unsecured Installment Secured Installment Open-End Other Total Balance, beginning of period $ 4,189 $ 49,298 $ 12,616 $ 19,901 $ — $ 86,004 Charge-offs (155,250 ) (319,808 ) (50,805 ) (108,319 ) (5,445 ) (639,627 ) Recoveries 109,124 56,908 13,352 19,061 3,284 201,729 Net charge-offs (46,126 ) (262,900 ) (37,453 ) (89,258 ) (2,161 ) (437,898 ) Provision for losses 47,739 259,713 35,212 123,726 2,161 468,551 Effect of foreign currency translation 67 29 — 705 — 801 Balance, end of period $ 5,869 $ 46,140 $ 10,375 $ 55,074 $ — $ 117,458 The following table summarizes activity in the allowance for loan losses and the liability for losses on CSO lender-owned consumer loans, in total (in thousands): Year Ended December 31, 2018 Single-Pay Unsecured Installment Secured Installment Open-End Other Total Balance, beginning of period $ 5,204 $ 56,098 $ 14,194 $ 6,426 $ — $ 81,922 Charge-offs (164,342 ) (307,229 ) (51,465 ) (113,150 ) (5,913 ) (642,099 ) Recoveries 115,118 52,516 13,374 41,457 3,603 226,068 Net charge-offs (49,224 ) (254,713 ) (38,091 ) (71,693 ) (2,310 ) (416,031 ) Provision for losses 48,575 247,903 36,513 86,299 2,310 421,600 Effect of foreign currency translation (366 ) 10 — (1,131 ) — (1,487 ) Balance, end of period $ 4,189 $ 49,298 $ 12,616 $ 19,901 $ — $ 86,004 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Components of Accounts Payable and Accrued Liabilities | Components of Accounts payable and accrued liabilities were as follows (in thousands): December 31, December 31, 2019 2018 Trade accounts payable $ 25,972 $ 24,463 Money orders payable 4,805 7,822 Accrued taxes, other than income taxes 295 944 Accrued payroll and fringe benefits 24,837 14,518 Other accrued liabilities 4,174 1,399 Total accounts payable and accrued liabilities $ 60,083 $ 49,146 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Debt consisted of the following (in thousands): December 31, December 31, 2019 2018 8.25% Senior Secured Notes (due 2025) $ 678,323 $ 676,661 Non-Recourse Canada SPV Facility 112,221 107,479 Senior Revolver — 20,000 Debt $ 790,544 $ 804,140 |
Future Maturities of Long-Term Debt | Annual maturities of outstanding debt for each of the five years after December 31, 2019 are as follows (in thousands): Amount 2020 $ — 2021 — 2022 38,414 2023 76,829 2024 — Thereafter 690,000 Debt (before deferred financing costs and discounts) 805,243 Less: deferred financing costs and discounts 14,699 Debt, net $ 790,544 |
SHARE-BASED COMPENSATION Tables
SHARE-BASED COMPENSATION Tables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | The following table summarizes the Company's stock option activity for the years ended December 31, 2019 , 2018 and 2017 : Stock Options Weighted Average Exercise Price Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in millions) Outstanding at January 1, 2017 1,879,308 $ 2.73 4.6 $ 2.1 Granted 99,396 $ 8.86 $ 4.11 Exercised — $ — Forfeited (1,224 ) $ 3.39 Outstanding at December 31, 2017 1,977,480 $ 3.04 5.2 $ 21.8 Granted — $ — $ — Exercised (500,924 ) $ 1.46 $ 4.0 Forfeited (31,224 ) $ 4.03 $ 1.84 Outstanding at December 31, 2018 1,445,332 $ 3.56 3.7 $ 8.6 Granted — $ — Exercised (40,014 ) $ 3.71 $ 0.3 Forfeited (696 ) $ 8.86 $ 4.07 Outstanding at December 31, 2019 1,404,622 $ 3.56 2.6 $ 12.1 Options exercisable at December 31, 2019 1,226,422 $ 3.42 2.1 $ 10.7 |
Schedule of Restricted Stock Activity | A summary of the activity of time-based and market-based unvested RSUs for the years ended December 31, 2019 and 2018 is presented in the following table: Number of RSUs Weighted Average Grant Date Fair Value per Share Time-Based Market-Based January 1, 2017 — — $ — Granted 1,516,241 — $ 14.00 Vested — — $ — Forfeited — — $ — December 31, 2017 1,516,241 — $ 14.00 Granted 73,663 — $ 18.20 Vested (508,126 ) — $ 14.00 Forfeited (21,428 ) — $ 14.00 December 31, 2018 1,060,350 — $ 14.29 Granted 598,114 397,752 $ 10.08 Vested (514,552 ) — $ 14.21 Forfeited (82,159 ) (2,891 ) $ 13.71 December 31, 2019 1,061,753 394,861 $ 11.47 |
Share-based Compensation Expense | Share-based compensation expense, which includes compensation costs from stock options and RSUs, included in the Consolidated Statements of Operations as a component of "Corporate, district and other" expenses is summarized in the following table (in thousands): For the year ended, 2019 2018 2017 Pre-tax share-based compensation expense $ 10,323 $ 8,210 $ 965 Income tax benefit (2,632 ) (2,217 ) (386 ) Total share-based compensation expense, net of tax $ 7,691 $ 5,993 $ 579 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) | Income before taxes and income tax expense (benefit) was comprised of the following: Year Ended December 31, (in thousands) 2019 2018 2017 Income (loss) before taxes: U.S. tax jurisdictions $ 119,241 $ 16,759 $ 67,771 Non-U.S. tax jurisdictions 23,214 1,359 34,485 Total income (loss) before taxes $ 142,455 $ 18,118 $ 102,256 Current tax provision (benefit) Federal $ 3,160 $ (7,983 ) $ 19,935 State 395 (1,518 ) 2,409 Foreign 930 7,748 10,542 Total current provision (benefit) 4,485 (1,753 ) 32,886 Deferred tax provision (benefit) Federal 22,978 7,471 6,283 State 5,145 631 2,647 Foreign 5,949 (4,690 ) (169 ) Total deferred tax provision (benefit) 34,072 3,412 8,761 Total provision for income taxes $ 38,557 $ 1,659 $ 41,647 |
Schedule of Deferred Income Tax Assets (Liabilities) | The sources of deferred income tax assets (liabilities) are summarized as follows: Year Ended December 31, (in thousands) 2019 2018 Deferred tax assets related to: Accrued expenses and other reserves $ 2,092 $ 3,267 Lease liability 32,009 — Compensation accruals 6,354 4,954 Deferred revenue 461 78 Federal net operating loss and capital loss carryforwards 13,693 — State and provincial net operating loss carryforwards 3,228 1,611 Foreign net operating loss and capital loss carryforwards 4,754 3,592 Tax credit carryforwards 158 — Gross deferred tax assets 62,749 13,502 Less: Valuation allowance (8,328 ) (6,996 ) Net deferred tax assets $ 54,421 $ 6,506 Deferred tax liabilities related to: Property and equipment $ (3,339 ) $ (3,870 ) Right of use asset (29,251 ) — Goodwill and other intangible assets (14,986 ) (14,508 ) Prepaid expenses and other assets (628 ) (197 ) Loans receivable (5,614 ) (127 ) Gross deferred tax liabilities (53,818 ) (18,702 ) Net deferred tax liabilities $ 603 $ (12,196 ) Deferred tax assets and liabilities are included in the following line items in the Consolidated Balance Sheets: Year Ended December 31, (in thousands) 2019 2018 Net current deferred tax assets $ 5,055 $ 1,534 Net long-term deferred tax liabilities (4,452 ) (13,730 ) Net deferred tax liabilities $ 603 $ (12,196 ) |
Schedule of Effective Tax Rate | Differences between the Company's effective income tax rate computed on net earnings or loss before income taxes and the statutory federal income tax rate were as follows (dollars in thousands): Year Ended December 31, 2019 2018 2017 Income tax expense using the statutory federal rate in effect $ 29,916 $ 3,805 $ 35,790 Tax effect of: Effects of foreign rates different than U.S. statutory rate (1,393 ) (65 ) (6,993 ) State, local and provincial income taxes, net of federal benefit 8,959 313 7,128 Tax credits (138 ) (116 ) (450 ) Nondeductible expenses 33 77 409 Valuation allowance 1,609 1,983 631 Deferred remeasurement — — 683 Repatriation tax — (1,610 ) 8,100 Deferred remeasurement due to the 2017 Tax Act — — (4,162 ) Share-based compensation 150 (2,944 ) — Other (579 ) 216 511 Total provision for income taxes $ 38,557 $ 1,659 $ 41,647 Effective income tax rate 27.1 % 8.4 % 40.7 % Statutory federal income tax rate 21.0 % 21.0 % 35.0 % |
Summary of Valuation Allowance | A summary of the valuation allowance was as follows (in thousands): Year Ended December 31, 2019 2018 2017 Balance at the beginning of year $ 6,996 $ 4,375 $ 3,717 Increase to balance charged as expense 1,609 1,983 631 Effect of foreign currency translation (277 ) 638 27 Balance at end of year $ 8,328 $ 6,996 $ 4,375 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Not Measured At Fair Value | The table below presents the assets and liabilities that were not carried at fair value on the Consolidated Balance Sheets at December 31, 2019 (in thousands). Estimated Fair Value Carrying Value December 31, Level 1 Level 2 Level 3 December 31, 2019 Financial assets: Cash $ 75,242 $ 75,242 $ — $ — $ 75,242 Restricted cash 34,779 34,779 — — 34,779 Loans receivable, net 558,993 — — 558,993 558,993 Equity method investment 10,068 — — 10,068 10,068 Financial liabilities: Liability for losses on CSO lender-owned consumer loans $ 10,623 $ — $ — $ 10,623 $ 10,623 8.25% Senior Secured Notes 678,323 — 596,924 — 596,924 Non-Recourse Canada SPV facility 112,221 — — 115,243 115,243 The table below presents the assets and liabilities that were not carried at fair value on the Consolidated Balance Sheets at December 31, 2018 (in thousands). Estimated Fair Value Carrying Value December 31, Level 1 Level 2 Level 3 December 31, 2018 Financial assets: Cash $ 61,175 $ 61,175 $ — $ — $ 61,175 Restricted cash 25,439 25,439 — — 25,439 Loans receivable, net 497,534 — — 497,534 497,534 Equity method investment 6,558 — — 6,558 6,558 Financial liabilities: Liability for losses on CSO lender-owned consumer loans $ 12,007 $ — $ — $ 12,007 $ 12,007 8.25% Senior Secured Notes 676,661 — 531,179 — 531,179 Non-Recourse Canada SPV facility 107,479 — — 111,335 111,335 Senior Revolver 20,000 — — 20,000 20,000 The table below presents the assets and liabilities that were carried at fair value on the Consolidated Balance Sheets at December 31, 2019 (in thousands): Estimated Fair Value Carrying Value December 31, Level 1 Level 2 Level 3 Total Financial assets: Cash Surrender Value of Life Insurance $ 6,171 $ 6,171 $ — $ — $ 6,171 Financial liabilities: Non-qualified deferred compensation plan $ 4,666 $ 4,666 $ — $ — $ 4,666 The table below presents the assets and liabilities that were carried at fair value on the Consolidated Balance Sheets at December 31, 2018 (in thousands): Estimated Fair Value Carrying Value December 31, Level 1 Level 2 Level 3 Total Financial assets: Cash Surrender Value of Life Insurance $ 4,790 $ 4,790 $ — $ — $ 4,790 Financial liabilities: (1) Non-qualified deferred compensation plan $ 3,639 $ 3,639 $ — $ — $ 3,639 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | Supplemental cash flow information was as follows (in thousands): Year Ended December 31, 2019 2018 2017 Cash paid for: Interest $ 69,134 $ 84,823 $ 60,054 Income taxes, net of refunds 2,355 16,311 26,863 Non-cash investing activities: Property and equipment accrued in accounts payable 631 1,718 1,631 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of Financial Information by Segment | The following table presents summarized financial information concerning the Company's reportable segments (in thousands): Year Ended December 31, 2019 2018 2017 Revenues by segment: (1) U.S. $ 913,506 $ 853,141 $ 737,729 Canada 228,291 191,932 186,408 Consolidated revenue $ 1,141,797 $ 1,045,073 $ 924,137 Net revenues by segment: U.S. $ 521,401 $ 504,530 $ 470,238 Canada 151,845 118,943 141,333 Consolidated net revenue $ 673,246 $ 623,473 $ 611,571 Gross margin by segment: U.S. $ 302,952 $ 284,828 $ 267,215 Canada 75,664 40,642 67,950 Consolidated gross margin $ 378,616 $ 325,470 $ 335,165 Segment operating income (loss): U.S. $ 99,152 $ 1,117 $ 51,459 Canada 43,303 17,001 50,797 Consolidated operating profit $ 142,455 $ 18,118 $ 102,256 Expenditures for long-lived assets by segment: U.S. $ 12,733 $ 11,105 $ 7,406 Canada 1,879 2,928 1,311 Consolidated expenditures for long-lived assets $ 14,612 $ 14,033 $ 8,717 (1) For revenue by product, see Note 6, "Loans Receivable and Revenue." The following table provides the proportion of gross loans receivable by segment (in thousands): December 31, December 31, U.S. $ 363,453 $ 361,473 Canada 302,375 210,058 Total gross loans receivable $ 665,828 $ 571,531 |
Summary of Long-lived Assets by Geographic Region | The following table presents the Company's net long-lived assets, comprised of property and equipment, by segment. These amounts are aggregated on a legal entity basis and do not necessarily reflect where the asset is physically located (in thousands): December 31, 2019 December 31, 2018 U.S. $ 43,618 $ 47,918 Canada 27,193 28,832 Total $ 70,811 $ 76,750 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Summary of Operating Lease Costs | The following table summarizes the operating lease costs for the year ended December 31, 2019 (in thousands): Year Ended Operating lease costs: Third-Party $ 30,479 Related-Party 3,464 Total (1) $ 33,943 (1) Includes immaterial variable lease costs. |
Summary of Future Minimum Lease Payments, ASC 842 | The following table summarizes the aggregate operating lease maturities that the Company is contractually obligated to make under operating leases as of December 31, 2019 (in thousands): Third-Party Related-Party Total 2020 $ 30,965 $ 3,754 $ 34,719 2021 27,520 3,773 31,293 2022 24,497 3,667 28,164 2023 19,574 1,322 20,896 2024 14,657 967 15,624 Thereafter 36,170 3,536 39,706 Total 153,383 17,019 170,402 Less: Imputed interest (41,237 ) (4,167 ) (45,404 ) Operating lease liabilities $ 112,146 $ 12,852 $ 124,998 |
Summary of Future Minimum Lease Payments, ASC 840 | In accordance with the prior guidance, ASC 840, Leases , the future minimum lease payments by fiscal year as determined prior to the adoption of ASC 842, Leases , as disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2018 , were as follows (in thousands): Third Party Related Party Total 2019 $ 24,211 $ 3,330 $ 27,541 2020 20,547 3,285 23,832 2021 17,301 3,324 20,625 2022 14,558 3,322 17,880 2023 10,269 705 10,974 Thereafter 13,446 730 14,176 Total (1) $ 100,332 $ 14,696 $ 115,028 (1) Future minimum lease payments exclude the U.K. as all U.K. subsidiaries were placed into administration effective February 25, 2019. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following presents the computation of basic and diluted earnings per share (in thousands, except per share amounts): Year Ended December 31, 2019 2018 2017 (1) Net income from continuing operations $ 103,898 $ 16,459 $ 60,609 Income (loss) from discontinued operations, net of tax 7,590 (38,512 ) (11,456 ) Net income (loss) $ 111,488 $ (22,053 ) $ 49,153 Weighted average common shares - basic 44,685 45,815 38,351 Dilutive effect of stock options and restricted stock units 1,289 2,150 926 Weighted average common shares - diluted 45,974 47,965 39,277 Basic earnings (loss) per share: Continuing operations $ 2.33 $ 0.36 $ 1.58 Discontinued operations 0.17 (0.84 ) (0.30 ) Basic earnings (loss) per share $ 2.50 $ (0.48 ) $ 1.28 Diluted earnings (loss) per share: Continuing operations $ 2.26 $ 0.34 $ 1.54 Discontinued operations 0.17 (0.80 ) (0.29 ) Diluted earnings (loss) per share $ 2.43 $ (0.46 ) $ 1.25 (1) The per share information has been adjusted to give effect to the 36-to-1 stock split of the Company's common stock which was effective December 6, 2017. |
QUARTERLY FINANCIAL DATA (UNA_2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | The following is a summary of the quarterly results of operations for the years ended December 31, 2019 and 2018 (dollars in thousands, except per share amounts): 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 277,939 $ 264,300 $ 297,264 $ 302,294 Provision for losses 102,385 112,010 123,867 130,289 Net revenue $ 175,554 $ 152,290 $ 173,397 $ 172,005 Total cost of providing services $ 70,057 $ 71,109 $ 76,758 $ 76,706 Gross margin $ 105,497 $ 81,181 $ 96,639 $ 95,299 Net income from continuing operations 28,673 17,667 27,987 29,571 Net income (loss) from discontinued operations, net of tax $ 8,375 $ (834 ) $ (598 ) $ 647 Net income $ 37,048 $ 16,833 $ 27,389 $ 30,218 Basic income (loss) per share: Continuing operations $ 0.62 $ 0.38 $ 0.63 $ 0.71 Discontinued operations 0.18 (0.02 ) (0.01 ) 0.02 Basic income per share $ 0.80 $ 0.36 $ 0.62 $ 0.73 Diluted income (loss) per share: Continuing operations $ 0.61 $ 0.38 $ 0.61 $ 0.68 Discontinued operations 0.18 (0.02 ) (0.01 ) 0.01 Diluted income per share $ 0.79 $ 0.36 $ 0.60 $ 0.69 Basic weighted average shares outstanding 46,424 46,451 44,422 41,500 Diluted weighted average shares outstanding 47,319 47,107 46,010 43,243 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 250,843 $ 237,169 $ 269,482 $ 287,579 Provision for losses 76,883 86,347 127,692 130,678 Net revenue $ 173,960 $ 150,822 $ 141,790 $ 156,901 Total cost of providing services $ 68,114 $ 73,474 $ 81,196 $ 75,219 Gross margin $ 105,846 $ 77,348 $ 60,594 $ 81,682 Net income (loss) from continuing operations 24,913 18,718 (42,590 ) 15,418 Net loss from discontinued operations, net of tax $ (1,621 ) $ (2,743 ) $ (4,432 ) $ (29,716 ) Net income (loss) $ 23,292 $ 15,975 $ (47,022 ) $ (14,298 ) Basic income (loss) per share: Continuing operations $ 0.55 $ 0.41 $ (0.93 ) $ 0.33 Discontinued operations (0.04 ) (0.06 ) (0.10 ) (0.64 ) Basic income (loss) per share $ 0.51 $ 0.35 $ (1.03 ) $ (0.31 ) Diluted income (loss) per share: Continuing operations $ 0.53 $ 0.39 $ (0.93 ) $ 0.32 Discontinued operations (0.03 ) (0.06 ) (0.10 ) (0.62 ) Diluted income (loss) per share $ 0.50 $ 0.33 $ (1.03 ) $ (0.30 ) Basic weighted average shares outstanding 45,506 45,650 45,853 46,158 Diluted weighted average shares outstanding 47,416 47,996 45,853 47,773 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued operations aggregate carrying amounts of the assets and liabilities | The following table presents the results from the discontinued operations of the U.K. Subsidiaries included in the Consolidated Statement of Operations (in thousands): For the Year Ended December 31, 2019 2018 2017 Revenue $ 6,957 $ 49,238 $ 39,496 Provision for losses 1,703 21,632 13,660 Net revenue 5,254 27,606 25,836 Cost of providing services Advertising 775 8,970 5,495 Non-advertising costs of providing services 307 3,209 6,269 Total cost of providing services 1,082 12,179 11,764 Gross margin 4,172 15,427 14,072 Operating expense (income) Corporate, district and other 3,810 31,639 17,218 Interest income (4 ) (26 ) (12 ) Restructuring costs — — 7,393 Goodwill impairment — 22,496 — Loss on disposition 39,414 — — Total operating expense 43,220 54,109 24,599 Loss from operations of discontinued operations before income taxes (39,048 ) (38,682 ) (10,527 ) (Benefit) / provision for income tax (46,638 ) (170 ) 929 Income (loss) from discontinued operations $ 7,590 $ (38,512 ) $ (11,456 ) The effective tax rate for the year ending December 31, 2019 was 119.4% , and primarily relates to the worthlessness of the U.K. stock resulting in a U.S. tax benefit. The following table presents the aggregate carrying amounts of the assets and liabilities of the discontinued operations of the U.K. Subsidiaries (in thousands): December 31, December 31, ASSETS Cash $ — $ 9,859 Restricted cash — 3,384 Gross loans receivable — 25,256 Less: allowance for loan losses — (5,387 ) Loans receivable, net — 19,869 Prepaid expenses and other — 1,482 Other — 267 Total assets classified as discontinued operations in the Consolidated Balance Sheets $ — $ 34,861 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable and accrued liabilities $ — $ 8,136 Deferred revenue — 180 Accrued interest — (5 ) Deferred rent — 149 Other long-term liabilities — 422 Total liabilities classified as discontinued operations in the Consolidated Balance Sheets $ — $ 8,882 The following table presents cash flows of the discontinued operations of the U.K. Subsidiaries (in thousands): Year Ended December 31, 2019 2018 2017 Net cash (used in) provided by discontinued operating activities $ (504 ) $ 10,808 $ 9,666 Net cash used in discontinued investing activities (14,213 ) (27,891 ) (15,761 ) Net cash used in discontinued financing activities — — — |
SHARE REPURCHASE PROGRAM (Table
SHARE REPURCHASE PROGRAM (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Share Repurchase Program | The table below summarizes share repurchase activity during the year ended December 31, 2019 (in thousands, except for per share amounts and number of share amounts): Year Ended December 31, 2019 Total number of shares repurchased 3,614,541 Average price paid per share $ 12.52 Total value of shares repurchased $ 45,241 Total authorized repurchase amount for the period presented $ 50,000 Total value of shares repurchased 45,241 Total remaining authorized repurchase amount $ 4,759 The Company completed the $50.0 million share repurchase program announced in April 2019 by repurchasing 455,255 remaining shares between January 1, 2020 through February 5, 2020, as disclosed below (in thousands, except per share and number of share amounts): January 1 - February 5 2020 Total number of shares repurchased 455,255 Average price paid per share $ 10.45 Total value of shares repurchased $ 4,759 On February 5, 2020, the Company's Board of Directors announced the authorization of a new share repurchase program for up to $25.0 million of its common stock. The share repurchase program will continue until completed or terminated. Under the program, shares may be repurchased in the open market or in privately negotiated transactions at times and amounts considered appropriate by CURO. The Company repurchased 51,302 shares between February 24, 2020 through March 6, 2020 (in thousands, except per share amounts and number of share amounts): February 24 - March 6 2020 Total number of shares repurchased 51,302 Average price paid per share $ 9.75 Total value of shares repurchased $ 500 |
SUBSEQUENT EVENTS (Tables)
SUBSEQUENT EVENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Schedule of Share Repurchase Program | The table below summarizes share repurchase activity during the year ended December 31, 2019 (in thousands, except for per share amounts and number of share amounts): Year Ended December 31, 2019 Total number of shares repurchased 3,614,541 Average price paid per share $ 12.52 Total value of shares repurchased $ 45,241 Total authorized repurchase amount for the period presented $ 50,000 Total value of shares repurchased 45,241 Total remaining authorized repurchase amount $ 4,759 The Company completed the $50.0 million share repurchase program announced in April 2019 by repurchasing 455,255 remaining shares between January 1, 2020 through February 5, 2020, as disclosed below (in thousands, except per share and number of share amounts): January 1 - February 5 2020 Total number of shares repurchased 455,255 Average price paid per share $ 10.45 Total value of shares repurchased $ 4,759 On February 5, 2020, the Company's Board of Directors announced the authorization of a new share repurchase program for up to $25.0 million of its common stock. The share repurchase program will continue until completed or terminated. Under the program, shares may be repurchased in the open market or in privately negotiated transactions at times and amounts considered appropriate by CURO. The Company repurchased 51,302 shares between February 24, 2020 through March 6, 2020 (in thousands, except per share amounts and number of share amounts): February 24 - March 6 2020 Total number of shares repurchased 51,302 Average price paid per share $ 9.75 Total value of shares repurchased $ 500 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS - Narrative (Details) | Aug. 02, 2018CAD ($) | Dec. 06, 2017 | Nov. 30, 2017 | Aug. 31, 2018CAD ($) | Dec. 31, 2019USD ($)lenderreporting_unit | Dec. 31, 2018USD ($)reporting_unit | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)lender | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) | Sep. 30, 2018 |
Debt Instrument [Line Items] | ||||||||||||
Stock split conversion ratio | 36 | 36 | ||||||||||
Loans receivable, expected term | 60 months | |||||||||||
Delinquent loans receivable | $ 110,682,000 | $ 66,474,000 | $ 110,682,000 | $ 66,474,000 | ||||||||
CSO guarantee liability | 10,623,000 | 12,007,000 | 10,623,000 | 12,007,000 | $ 17,795,000 | |||||||
Debt | $ 790,544,000 | $ 804,140,000 | 790,544,000 | 804,140,000 | ||||||||
Number of reporting units | reporting_unit | 2 | 2 | ||||||||||
Intangible impairments, indefinite lived | 0 | 0 | 0 | |||||||||
Intangible impairments, definite lived | 0 | 0 | 0 | |||||||||
Right of use asset - operating leases | $ 117,453,000 | 117,453,000 | ||||||||||
Lease liability - operating leases | $ 124,999,000 | $ 124,999,000 | ||||||||||
Accounting Standards Update 2016-02 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Prepaid rent | $ 2,700,000 | |||||||||||
Deferred rent | $ 10,900,000 | |||||||||||
Credit Services Organization Programs | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of unaffiliated third-party lenders for CSO programs | lender | 3 | 3 | ||||||||||
CSO guarantee liability | $ 10,600,000 | $ 12,000,000 | $ 10,600,000 | 12,000,000 | ||||||||
Amounts placed in collateral accounts | 6,200,000 | 17,200,000 | 6,200,000 | 17,200,000 | ||||||||
Credit Services Organization Programs | Financial Guarantee | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Guarantor obligations, maximum exposure, undiscounted | 62,700,000 | 66,900,000 | $ 62,700,000 | 66,900,000 | ||||||||
Consumer Portfolio Segment | Auto Title Loan | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Loans receivable, expected term | 30 days | |||||||||||
Consumer Portfolio Segment | Open-End | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Delinquent loans receivable | 50,072,000 | 0 | $ 50,072,000 | 0 | ||||||||
Interest earned on past-due loan balances | 49,000,000 | |||||||||||
Consumer Portfolio Segment | Unsecured Installment | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Delinquent loans receivable | 43,100,000 | 49,085,000 | 43,100,000 | 49,085,000 | ||||||||
CSO guarantee liability | 10,553,000 | 11,582,000 | $ 10,553,000 | $ 11,582,000 | $ 17,073,000 | |||||||
Consumer Portfolio Segment | Unsecured Installment | Credit Services Organization Programs | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Loans receivable loans paid off prior to maturity date under CSO program | 58.20% | 57.30% | 53.60% | |||||||||
Consumer Portfolio Segment | Secured Installment | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Delinquent loans receivable | 17,510,000 | 17,389,000 | $ 17,510,000 | $ 17,389,000 | ||||||||
CSO guarantee liability | $ 70,000 | 425,000 | $ 70,000 | $ 425,000 | $ 722,000 | |||||||
Consumer Portfolio Segment | Secured Installment | Credit Services Organization Programs | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Loans receivable loans paid off prior to maturity date under CSO program | 54.30% | 54.50% | 53.60% | |||||||||
Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated useful life, finite-lived intangible assets | 3 years | |||||||||||
Minimum | Computer software | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated useful life, finite-lived intangible assets | 3 years | |||||||||||
Minimum | Furniture, fixtures and equipment | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated useful lives | 5 years | |||||||||||
Minimum | Leasehold improvements | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated useful lives | 1 year | |||||||||||
Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated useful life, finite-lived intangible assets | 10 years | |||||||||||
Maximum | Computer software | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated useful life, finite-lived intangible assets | 10 years | |||||||||||
Maximum | Furniture, fixtures and equipment | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated useful lives | 7 years | |||||||||||
Maximum | Leasehold improvements | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated useful lives | 15 years | |||||||||||
Maximum | Consumer Portfolio Segment | Installment Loans | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Loans receivable, expected term | 60 months | |||||||||||
Texas | Maximum | Credit Services Organization Programs | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Loans receivable, expected term | 180 days | |||||||||||
Credit Concentration Risk | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Concentration risk, percentage | 16.00% | 12.90% | ||||||||||
Credit Concentration Risk | Consumer Portfolio Segment | Open-End | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Concentration risk, percentage | 16.40% | 9.60% | ||||||||||
Credit Concentration Risk | Consumer Portfolio Segment | Secured Installment | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Concentration risk, percentage | 11.70% | 13.10% | ||||||||||
Credit Concentration Risk | Allowance For Loan Losses | Consumer Portfolio Segment | Open-End | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Concentration risk, percentage | 16.40% | 9.60% | ||||||||||
Credit Concentration Risk | Allowance For Loan Losses | Consumer Portfolio Segment | Unsecured Installment | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Concentration risk, percentage | 22.10% | 19.80% | ||||||||||
Geographic Concentration Risk | Revenue Benchmark | Texas | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Concentration risk, percentage | 24.60% | 26.00% | ||||||||||
Geographic Concentration Risk | Revenue Benchmark | California | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Concentration risk, percentage | 18.40% | 19.20% | ||||||||||
Geographic Concentration Risk | Revenue Benchmark | Ontario | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Concentration risk, percentage | 13.60% | 11.50% | ||||||||||
Katapult | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Ownership percentage | 43.80% | 43.80% | 43.80% | |||||||||
Loss on investment | $ 3,700,000 | $ 2,500,000 | ||||||||||
Amount of obligations guaranteed to be paid | $ 5,500,000 | 5,500,000 | ||||||||||
Katapult | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Contract pricing | 300 | |||||||||||
Katapult | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Contract pricing | 3,500 | |||||||||||
Revolving Credit Facility | Non-Recourse Canada SPV Facility | Line of Credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt | $ 112,221,000 | $ 107,479,000 | $ 112,221,000 | $ 107,479,000 | ||||||||
Debt instrument, term | 4 years | 4 years | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 175,000,000 | $ 175,000,000 | ||||||||||
CDOR | Revolving Credit Facility | Non-Recourse Canada SPV Facility | Line of Credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS - Cash and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 75,242 | $ 61,175 | $ 153,483 | |
Restricted cash (includes restricted cash of consolidated VIEs of $17,427 and $12,840 as of December 31, 2019 and 2018, respectively) | 34,779 | 25,439 | 8,548 | |
Total cash, cash equivalents and restricted cash from continuing operations | 110,021 | 86,614 | 162,031 | |
Cash and restricted cash from discontinued operations | 0 | 13,243 | 12,460 | |
Total cash, cash equivalents and restricted cash used in the Statements of Cash Flows | 110,021 | 99,857 | $ 174,491 | $ 201,353 |
Variable Interest Entity | ||||
Cash and Cash Equivalents [Line Items] | ||||
Restricted cash (includes restricted cash of consolidated VIEs of $17,427 and $12,840 as of December 31, 2019 and 2018, respectively) | $ 17,427 | $ 12,840 |
PREPAID EXPENSES AND OTHER (Det
PREPAID EXPENSES AND OTHER (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Settlements and collateral due from third-party lenders | $ 6,156 | $ 17,205 |
Fees receivable from customers under CSO programs | 14,564 | 13,771 |
Prepaid expenses | 4,546 | 6,456 |
Other assets | 10,624 | 6,156 |
Total prepaid expenses and other | $ 35,890 | $ 43,588 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 172,300 | $ 161,799 | |
Accumulated depreciation and amortization | (101,489) | (85,049) | |
Property and equipment, net | 70,811 | 76,750 | |
Depreciation expense | 15,800 | 15,600 | $ 16,100 |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 134,574 | 126,903 | |
Furniture, fixtures and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 37,726 | $ 34,896 |
GOODWILL AND INTANGIBLES - Narr
GOODWILL AND INTANGIBLES - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Accumulated impairment | $ 0 | ||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 2,900,000 | $ 2,700,000 | $ 2,400,000 |
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life, finite-lived intangible assets | 3 years | ||
Minimum | Customer relationships and computer software | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life, finite-lived intangible assets | 1 year | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life, finite-lived intangible assets | 10 years | ||
Maximum | Customer relationships and computer software | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life, finite-lived intangible assets | 10 years | ||
Cash Money Trade Name | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Carrying value of indefinite-lived intangible asset | $ 22,400,000 |
GOODWILL AND INTANGIBLES - Good
GOODWILL AND INTANGIBLES - Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Goodwill | $ 119,281 | $ 121,647 |
Foreign currency translation | 1,328 | (2,366) |
Goodwill | 120,609 | 119,281 |
U.S. | ||
Goodwill [Roll Forward] | ||
Goodwill | 91,131 | 91,131 |
Foreign currency translation | 0 | 0 |
Goodwill | 91,131 | 91,131 |
Canada | ||
Goodwill [Roll Forward] | ||
Goodwill | 28,150 | 30,516 |
Foreign currency translation | 1,328 | (2,366) |
Goodwill | $ 29,478 | $ 28,150 |
GOODWILL AND INTANGIBLES - Iden
GOODWILL AND INTANGIBLES - Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 57,667 | $ 63,700 |
Accumulated Amortization | (23,740) | (33,916) |
Net | 33,927 | 29,784 |
Trade name | ||
Schedule of Intangible Assets [Line Items] | ||
Carrying value of indefinite-lived intangible asset | $ 22,357 | 21,350 |
Customer relationships | ||
Schedule of Intangible Assets [Line Items] | ||
Weighted-Average Remaining Life | 0 years | |
Gross Carrying Amount | $ 8,982 | 18,299 |
Accumulated Amortization | (8,982) | (17,643) |
Net | $ 0 | 656 |
Computer software | ||
Schedule of Intangible Assets [Line Items] | ||
Weighted-Average Remaining Life | 9 years 2 months 12 days | |
Gross Carrying Amount | $ 26,328 | 24,051 |
Accumulated Amortization | (14,758) | (16,273) |
Net | $ 11,570 | $ 7,778 |
GOODWILL AND INTANGIBLES - Esti
GOODWILL AND INTANGIBLES - Estimated future amortization expense (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 2,065 |
2021 | 1,508 |
2022 | 838 |
2023 | 519 |
2024 | $ 519 |
VARIABLE INTEREST ENTITIES - Ca
VARIABLE INTEREST ENTITIES - Carrying Amounts of Consolidated VIE Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Total Assets | $ 1,081,895 | $ 919,617 |
Liabilities | ||
Total Liabilities | 1,031,382 | 938,718 |
Variable Interest Entity | ||
Assets: | ||
Restricted cash | 17,427 | 12,840 |
Loans receivable less allowance for loan losses | 220,067 | 136,187 |
Total Assets | 237,494 | 149,027 |
Liabilities | ||
Accounts payable and accrued liabilities | 13,462 | 4,980 |
Deferred revenue | 46 | 40 |
Accrued interest | 871 | 831 |
Intercompany payable | 69,639 | 44,330 |
Debt | 112,221 | 107,479 |
Total Liabilities | $ 196,239 | $ 157,660 |
LOANS RECEIVABLE AND REVENUE -
LOANS RECEIVABLE AND REVENUE - Narrative (Details) | Dec. 31, 2019 |
Consumer Portfolio Segment | Installment Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Late fees, percent of revenue (less than) (as percent) | 1.00% |
LOANS RECEIVABLE AND REVENUE _2
LOANS RECEIVABLE AND REVENUE - Revenue by Product (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from External Customer [Line Items] | |||||||||||
Revenue | $ 302,294 | $ 297,264 | $ 264,300 | $ 277,939 | $ 287,579 | $ 269,482 | $ 237,169 | $ 250,843 | $ 1,141,797 | $ 1,045,073 | $ 924,137 |
Consumer Portfolio Segment | Unsecured Installment | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 530,730 | 523,282 | 454,758 | ||||||||
Consumer Portfolio Segment | Secured Installment | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 110,513 | 110,677 | 100,981 | ||||||||
Consumer Portfolio Segment | Open-End | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 245,256 | 141,963 | 73,496 | ||||||||
Consumer Portfolio Segment | Single-Pay | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 191,449 | 218,992 | 255,170 | ||||||||
Ancillary | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 63,849 | 50,159 | 39,732 | ||||||||
Credit Services Organization Programs | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | $ 289,300 | $ 291,500 | $ 265,200 |
LOANS RECEIVABLE AND REVENUE _3
LOANS RECEIVABLE AND REVENUE - Loans Receivable by Product and Delinquency (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Current loans receivable | $ 555,146 | $ 505,057 | |
Delinquent loans receivable | 110,682 | 66,474 | |
Total loans receivable | 665,828 | 571,531 | |
Less: allowance for losses | (106,835) | (73,997) | $ (64,127) |
Loans receivable, net | 558,993 | 497,534 | |
Consumer Portfolio Segment | Single-Pay | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Current loans receivable | 81,447 | 80,823 | |
Delinquent loans receivable | 0 | 0 | |
Total loans receivable | 81,447 | 80,823 | |
Less: allowance for losses | (5,869) | (4,189) | (5,204) |
Loans receivable, net | 75,578 | 76,634 | |
Consumer Portfolio Segment | Unsecured Installment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Current loans receivable | 117,682 | 141,318 | |
Delinquent loans receivable | 43,100 | 49,085 | |
Total loans receivable | 160,782 | 190,403 | |
Less: allowance for losses | (35,587) | (37,716) | (39,025) |
Loans receivable, net | 125,195 | 152,687 | |
Consumer Portfolio Segment | Secured Installment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Current loans receivable | 70,565 | 75,583 | |
Delinquent loans receivable | 17,510 | 17,389 | |
Total loans receivable | 88,075 | 92,972 | |
Less: allowance for losses | (10,305) | (12,191) | (13,472) |
Loans receivable, net | 77,770 | 80,781 | |
Consumer Portfolio Segment | Open-End | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Current loans receivable | 285,452 | 207,333 | |
Delinquent loans receivable | 50,072 | 0 | |
Total loans receivable | 335,524 | 207,333 | |
Less: allowance for losses | (55,074) | (19,901) | $ (6,426) |
Loans receivable, net | 280,450 | 187,432 | |
Canada | Consumer Portfolio Segment | Single-Pay | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | $ 22,400 | $ 23,700 |
LOANS RECEIVABLE AND REVENUE _4
LOANS RECEIVABLE AND REVENUE - Delinquent Loans - Aging Analysis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | $ 110,682 | $ 66,474 |
0-30 days past-due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 45,231 | 25,718 |
31-60 days past-due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 30,479 | 19,430 |
61 days past-due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 34,972 | 21,326 |
Consumer Portfolio Segment | Unsecured Installment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 43,100 | 49,085 |
Consumer Portfolio Segment | Unsecured Installment | 0-30 days past-due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 15,369 | 17,848 |
Consumer Portfolio Segment | Unsecured Installment | 31-60 days past-due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 12,403 | 14,705 |
Consumer Portfolio Segment | Unsecured Installment | 61 days past-due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 15,328 | 16,532 |
Consumer Portfolio Segment | Secured Installment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 17,510 | 17,389 |
Consumer Portfolio Segment | Secured Installment | 0-30 days past-due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 8,039 | 7,870 |
Consumer Portfolio Segment | Secured Installment | 31-60 days past-due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 4,885 | 4,725 |
Consumer Portfolio Segment | Secured Installment | 61 days past-due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 4,586 | 4,794 |
Consumer Portfolio Segment | Open-End | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 50,072 | $ 0 |
Consumer Portfolio Segment | Open-End | 0-30 days past-due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 21,823 | |
Consumer Portfolio Segment | Open-End | 31-60 days past-due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | 13,191 | |
Consumer Portfolio Segment | Open-End | 61 days past-due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable | $ 15,058 |
LOANS RECEIVABLE AND REVENUE _5
LOANS RECEIVABLE AND REVENUE - Loans Receivable by Product, Credit Services Organization (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Current loans receivable guaranteed by the Company | $ 63,784 | $ 68,247 | |
Delinquent loans receivable guaranteed by the Company | 12,869 | 12,154 | |
Total loans receivable guaranteed by the Company | 76,653 | 80,401 | |
Less: Liability for losses on CSO lender-owned consumer loans | (10,623) | (12,007) | $ (17,795) |
Loans receivable guaranteed by the Company, net | 66,030 | 68,394 | |
Consumer Portfolio Segment | Unsecured Installment | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Current loans receivable guaranteed by the Company | 61,840 | 65,743 | |
Delinquent loans receivable guaranteed by the Company | 12,477 | 11,708 | |
Total loans receivable guaranteed by the Company | 74,317 | 77,451 | |
Less: Liability for losses on CSO lender-owned consumer loans | (10,553) | (11,582) | (17,073) |
Loans receivable guaranteed by the Company, net | 63,764 | 65,869 | |
Consumer Portfolio Segment | Secured Installment | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Current loans receivable guaranteed by the Company | 1,944 | 2,504 | |
Delinquent loans receivable guaranteed by the Company | 392 | 446 | |
Total loans receivable guaranteed by the Company | 2,336 | 2,950 | |
Less: Liability for losses on CSO lender-owned consumer loans | (70) | (425) | $ (722) |
Loans receivable guaranteed by the Company, net | $ 2,266 | $ 2,525 |
LOANS RECEIVABLE AND REVENUE _6
LOANS RECEIVABLE AND REVENUE - Delinquent Loans, Credit Services Organization - Aging Analysis (Details) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | $ 12,869 | $ 12,154 |
0-30 days past-due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 10,718 | 10,053 |
31-60 days past-due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 1,296 | 1,303 |
61 days past-due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 855 | 798 |
Consumer Portfolio Segment | Unsecured Installment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 12,477 | 11,708 |
Consumer Portfolio Segment | Unsecured Installment | 0-30 days past-due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 10,392 | 9,684 |
Consumer Portfolio Segment | Unsecured Installment | 31-60 days past-due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 1,256 | 1,255 |
Consumer Portfolio Segment | Unsecured Installment | 61 days past-due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 829 | 769 |
Consumer Portfolio Segment | Secured Installment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 392 | 446 |
Consumer Portfolio Segment | Secured Installment | 0-30 days past-due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 326 | 369 |
Consumer Portfolio Segment | Secured Installment | 31-60 days past-due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | 40 | 48 |
Consumer Portfolio Segment | Secured Installment | 61 days past-due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Delinquent loans receivable guaranteed by the Company | $ 26 | $ 29 |
LOANS RECEIVABLE AND REVENUE _7
LOANS RECEIVABLE AND REVENUE - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | $ 73,997 | $ 64,127 |
Charge-offs | (474,460) | (472,364) |
Recoveries | 165,873 | 190,394 |
Net charge-offs | (308,587) | (281,970) |
Provision for losses | 340,624 | 293,327 |
Effect of foreign currency translation | 801 | (1,487) |
Balance, end of period | $ 106,835 | $ 73,997 |
Credit Concentration Risk | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Concentration risk, percentage | 16.00% | 12.90% |
Consumer Portfolio Segment | Single-Pay | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | $ 4,189 | $ 5,204 |
Charge-offs | (155,250) | (164,342) |
Recoveries | 109,124 | 115,118 |
Net charge-offs | (46,126) | (49,224) |
Provision for losses | 47,739 | 48,575 |
Effect of foreign currency translation | 67 | (366) |
Balance, end of period | $ 5,869 | $ 4,189 |
Consumer Portfolio Segment | Single-Pay | Allowance For Loan Losses | Credit Concentration Risk | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Concentration risk, percentage | 7.20% | 5.20% |
Consumer Portfolio Segment | Unsecured Installment | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | $ 37,716 | $ 39,025 |
Charge-offs | (158,251) | (141,963) |
Recoveries | 23,660 | 20,175 |
Net charge-offs | (134,591) | (121,788) |
Provision for losses | 132,433 | 120,469 |
Effect of foreign currency translation | 29 | 10 |
Balance, end of period | $ 35,587 | $ 37,716 |
Consumer Portfolio Segment | Unsecured Installment | Allowance For Loan Losses | Credit Concentration Risk | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Concentration risk, percentage | 22.10% | 19.80% |
Consumer Portfolio Segment | Secured Installment | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | $ 12,191 | $ 13,472 |
Charge-offs | (47,195) | (46,996) |
Recoveries | 10,744 | 10,041 |
Net charge-offs | (36,451) | (36,955) |
Provision for losses | 34,565 | 35,674 |
Effect of foreign currency translation | 0 | 0 |
Balance, end of period | $ 10,305 | $ 12,191 |
Consumer Portfolio Segment | Secured Installment | Credit Concentration Risk | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Concentration risk, percentage | 11.70% | 13.10% |
Consumer Portfolio Segment | Open-End | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | $ 19,901 | $ 6,426 |
Charge-offs | (108,319) | (113,150) |
Recoveries | 19,061 | 41,457 |
Net charge-offs | (89,258) | (71,693) |
Provision for losses | 123,726 | 86,299 |
Effect of foreign currency translation | 705 | (1,131) |
Balance, end of period | $ 55,074 | $ 19,901 |
Consumer Portfolio Segment | Open-End | Credit Concentration Risk | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Concentration risk, percentage | 16.40% | 9.60% |
Consumer Portfolio Segment | Open-End | Allowance For Loan Losses | Credit Concentration Risk | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Concentration risk, percentage | 16.40% | 9.60% |
Consumer Portfolio Segment | Other | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | $ 0 | $ 0 |
Charge-offs | (5,445) | (5,913) |
Recoveries | 3,284 | 3,603 |
Net charge-offs | (2,161) | (2,310) |
Provision for losses | 2,161 | 2,310 |
Effect of foreign currency translation | 0 | 0 |
Balance, end of period | $ 0 | $ 0 |
LOANS RECEIVABLE AND REVENUE _8
LOANS RECEIVABLE AND REVENUE - Liability for Losses on CSO Lender-Owned Consumer Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Guarantor Obligations [Roll Forward] | ||
Balance, beginning of period | $ 12,007 | $ 17,795 |
Charge-offs | (165,167) | (169,735) |
Recoveries | 35,856 | 35,674 |
Net charge-offs | (129,311) | (134,061) |
Provision for losses | 127,927 | 128,273 |
Balance, end of period | 10,623 | 12,007 |
Consumer Portfolio Segment | Unsecured Installment | ||
Guarantor Obligations [Roll Forward] | ||
Balance, beginning of period | 11,582 | 17,073 |
Charge-offs | (161,557) | (165,266) |
Recoveries | 33,248 | 32,341 |
Net charge-offs | (128,309) | (132,925) |
Provision for losses | 127,280 | 127,434 |
Balance, end of period | 10,553 | 11,582 |
Consumer Portfolio Segment | Secured Installment | ||
Guarantor Obligations [Roll Forward] | ||
Balance, beginning of period | 425 | 722 |
Charge-offs | (3,610) | (4,469) |
Recoveries | 2,608 | 3,333 |
Net charge-offs | (1,002) | (1,136) |
Provision for losses | 647 | 839 |
Balance, end of period | $ 70 | $ 425 |
LOANS RECEIVABLE AND REVENUE _9
LOANS RECEIVABLE AND REVENUE - Allowance For Doubtful Accounts, CSO Guarantee Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Losses And Guarantor Obligations [Roll Forward] | |||||||||||
Balance, beginning of period | $ 86,004 | $ 81,922 | $ 86,004 | $ 81,922 | |||||||
Charge-offs | (639,627) | (642,099) | |||||||||
Recoveries | 201,729 | 226,068 | |||||||||
Net charge-offs | (437,898) | (416,031) | |||||||||
Provision for losses | $ 130,289 | $ 123,867 | $ 112,010 | 102,385 | $ 130,678 | $ 127,692 | $ 86,347 | 76,883 | 468,551 | 421,600 | $ 312,566 |
Effect of foreign currency translation | 801 | (1,487) | |||||||||
Balance, end of period | 117,458 | 86,004 | 117,458 | 86,004 | 81,922 | ||||||
Consumer Portfolio Segment | Single-Pay | |||||||||||
Financing Receivable, Allowance for Credit Losses And Guarantor Obligations [Roll Forward] | |||||||||||
Balance, beginning of period | 4,189 | 5,204 | 4,189 | 5,204 | |||||||
Charge-offs | (155,250) | (164,342) | |||||||||
Recoveries | 109,124 | 115,118 | |||||||||
Net charge-offs | (46,126) | (49,224) | |||||||||
Provision for losses | 47,739 | 48,575 | |||||||||
Effect of foreign currency translation | 67 | (366) | |||||||||
Balance, end of period | 5,869 | 4,189 | 5,869 | 4,189 | 5,204 | ||||||
Consumer Portfolio Segment | Unsecured Installment | |||||||||||
Financing Receivable, Allowance for Credit Losses And Guarantor Obligations [Roll Forward] | |||||||||||
Balance, beginning of period | 49,298 | 56,098 | 49,298 | 56,098 | |||||||
Charge-offs | (319,808) | (307,229) | |||||||||
Recoveries | 56,908 | 52,516 | |||||||||
Net charge-offs | (262,900) | (254,713) | |||||||||
Provision for losses | 259,713 | 247,903 | |||||||||
Effect of foreign currency translation | 29 | 10 | |||||||||
Balance, end of period | 46,140 | 49,298 | 46,140 | 49,298 | 56,098 | ||||||
Consumer Portfolio Segment | Secured Installment | |||||||||||
Financing Receivable, Allowance for Credit Losses And Guarantor Obligations [Roll Forward] | |||||||||||
Balance, beginning of period | 12,616 | 14,194 | 12,616 | 14,194 | |||||||
Charge-offs | (50,805) | (51,465) | |||||||||
Recoveries | 13,352 | 13,374 | |||||||||
Net charge-offs | (37,453) | (38,091) | |||||||||
Provision for losses | 35,212 | 36,513 | |||||||||
Effect of foreign currency translation | 0 | 0 | |||||||||
Balance, end of period | 10,375 | 12,616 | 10,375 | 12,616 | 14,194 | ||||||
Consumer Portfolio Segment | Open-End | |||||||||||
Financing Receivable, Allowance for Credit Losses And Guarantor Obligations [Roll Forward] | |||||||||||
Balance, beginning of period | 19,901 | 6,426 | 19,901 | 6,426 | |||||||
Charge-offs | (108,319) | (113,150) | |||||||||
Recoveries | 19,061 | 41,457 | |||||||||
Net charge-offs | (89,258) | (71,693) | |||||||||
Provision for losses | 123,726 | 86,299 | |||||||||
Effect of foreign currency translation | 705 | (1,131) | |||||||||
Balance, end of period | 55,074 | 19,901 | 55,074 | 19,901 | 6,426 | ||||||
Consumer Portfolio Segment | Other | |||||||||||
Financing Receivable, Allowance for Credit Losses And Guarantor Obligations [Roll Forward] | |||||||||||
Balance, beginning of period | $ 0 | $ 0 | 0 | 0 | |||||||
Charge-offs | (5,445) | (5,913) | |||||||||
Recoveries | 3,284 | 3,603 | |||||||||
Net charge-offs | (2,161) | (2,310) | |||||||||
Provision for losses | 2,161 | 2,310 | |||||||||
Effect of foreign currency translation | 0 | 0 | |||||||||
Balance, end of period | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
CREDIT SERVICES ORGANIZATION (D
CREDIT SERVICES ORGANIZATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Liability for losses on CSO lender-owned consumer loans | $ 10,623 | $ 12,007 | $ 17,795 |
Credit Services Organization Programs | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Credit services organization, fees receivable | 14,700 | 14,300 | |
Liability for losses on CSO lender-owned consumer loans | 10,600 | 12,000 | |
Amounts placed in collateral accounts | $ 6,200 | 17,200 | |
Credit Services Organization Programs | Maximum | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
CSO program loan terms | 6 months | ||
Credit Services Organization Programs | Financial Guarantee | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Guarantor obligations, maximum exposure, undiscounted | $ 62,700 | $ 66,900 |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Trade accounts payable | $ 25,972 | $ 24,463 |
Money orders payable | 4,805 | 7,822 |
Accrued taxes, other than income taxes | 295 | 944 |
Accrued payroll and fringe benefits | 24,837 | 14,518 |
Other accrued liabilities | 4,174 | 1,399 |
Total accounts payable and accrued liabilities | $ 60,083 | $ 49,146 |
DEBT - Schedule of Long Term De
DEBT - Schedule of Long Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Aug. 31, 2018 |
Debt Instrument [Line Items] | ||||
Debt | $ 790,544 | $ 804,140 | ||
8.25% Senior Notes Due 2025 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 8.25% | |||
Senior Notes | 8.25% Senior Notes Due 2025 | ||||
Debt Instrument [Line Items] | ||||
Debt | $ 678,323 | 676,661 | ||
Stated interest rate | 8.25% | 8.25% | 8.25% | |
Line of Credit | Revolving Credit Facility | Non-Recourse Canada SPV Facility | ||||
Debt Instrument [Line Items] | ||||
Debt | $ 112,221 | 107,479 | ||
Line of Credit | Revolving Credit Facility | Senior Revolver | ||||
Debt Instrument [Line Items] | ||||
Debt | $ 0 | $ 20,000 |
DEBT - Senior Secured Notes (De
DEBT - Senior Secured Notes (Details) - USD ($) | Mar. 07, 2018 | Aug. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 02, 2018 | Sep. 30, 2018 | Nov. 30, 2017 | Feb. 28, 2017 |
Line of Credit Facility [Line Items] | |||||||||
Loss on extinguishment of debt | $ 0 | $ 90,569,000 | $ 12,458,000 | ||||||
Debt | $ 790,544,000 | 804,140,000 | |||||||
8.25% Senior Notes Due 2025 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Stated interest rate | 8.25% | ||||||||
Senior Notes | 8.25% Senior Notes Due 2025 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Stated interest rate | 8.25% | 8.25% | 8.25% | ||||||
Debt instrument, face amount | $ 690,000,000 | ||||||||
Debt issuance costs capitalized | $ 11,700,000 | ||||||||
Debt instrument, term | 5 years | ||||||||
Loss on extinguishment of debt | 69,200,000 | ||||||||
Debt | $ 678,323,000 | $ 676,661,000 | |||||||
Senior Notes | 12.00% Senior Secured Notes | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Stated interest rate | 12.00% | 12.00% | 12.00% | ||||||
Debt instrument, face amount | $ 135,000,000 | $ 135,000,000 | $ 470,000,000 | ||||||
Debt issuance costs capitalized | $ 18,300,000 | ||||||||
Amount of redemption | $ 77,500,000 | ||||||||
Redemption price, percentage of redemption amount (as percent) | 112.00% | ||||||||
Loss on extinguishment of debt | $ 11,700,000 | ||||||||
Debt | $ 527,500,000 |
DEBT - Non-Recourse Canada SPV
DEBT - Non-Recourse Canada SPV Facility (Details) $ in Thousands | Aug. 02, 2018CAD ($) | Apr. 30, 2019 | Aug. 31, 2018CAD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Line of Credit Facility [Line Items] | |||||
Debt | $ 790,544 | $ 804,140 | |||
Line of Credit | Non-Recourse Canada SPV Facility | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, term | 4 years | 4 years | |||
Line of credit facility, maximum borrowing capacity | $ 175,000,000 | $ 175,000,000 | |||
Credit facility, expansion capacity | $ 250,000,000 | ||||
Commitment fee on unused portion | 0.50% | ||||
Debt instrument, extended term | 1 year | ||||
Debt | 112,221 | $ 107,479 | |||
Debt issuance costs capitalized | $ 3,000 | ||||
Line of Credit | Non-Recourse Canada SPV Facility | Revolving Credit Facility | CDOR | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread | 6.75% |
DEBT - Senior Revolver (Details
DEBT - Senior Revolver (Details) | 1 Months Ended | ||||||||
Nov. 30, 2018USD ($) | Aug. 31, 2018 | Nov. 30, 2016 | Dec. 31, 2019lender | Nov. 02, 2018 | Sep. 30, 2018 | Feb. 28, 2018USD ($) | Nov. 30, 2017 | Sep. 01, 2017USD ($) | |
8.25% Senior Notes Due 2025 | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 8.25% | ||||||||
Line of Credit | Senior Revolver | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 5.00% | ||||||||
Line of Credit | Senior Revolver | London Interbank Offered Rate (LIBOR) | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread | 5.00% | ||||||||
Line of Credit | Revolving Credit Facility | Senior Revolver | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | $ 29,000,000 | $ 25,000,000 | ||||||
Number of banks participating in syndicated credit facility | lender | 4 | ||||||||
Outstanding balance requirement for calendar year | $ 0 | ||||||||
Number of days to maintain outstanding balance requirement | 30 days | ||||||||
Line of Credit | Letter of Credit | Senior Revolver | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 5,000,000 | ||||||||
Debt instrument, term | 1 year | ||||||||
Senior Notes | 8.25% Senior Notes Due 2025 | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 8.25% | 8.25% | 8.25% | ||||||
Debt instrument, term | 5 years | ||||||||
Senior Notes | 12.00% Senior Secured Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 12.00% | 12.00% | 12.00% |
DEBT - Cash Money Revolving Cre
DEBT - Cash Money Revolving Credit Facility (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019CAD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Debt Instrument [Line Items] | |||
Debt | $ 790,544 | $ 804,140 | |
Revolving Credit Facility | Line of Credit | Cash Money Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 10,000,000 | ||
Line of credit facility, remaining borrowing capacity | $ 9,900,000 | ||
Revolving Credit Facility | Line of Credit | Cash Money Revolving Credit Facility | Prime Rate | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.95% | ||
Standby Letters of Credit | Line of Credit | Cash Money Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Debt | $ 100,000 |
DEBT - Subordinated Stockholder
DEBT - Subordinated Stockholder Debt (Details) | Dec. 31, 2011 |
Subordinated Debt | Subordinated Stockholder Debt | |
Debt Instrument [Line Items] | |
Stated interest rate | 10.00% |
DEBT - Non-Recourse U.S. SPV Fa
DEBT - Non-Recourse U.S. SPV Facility (Details) - USD ($) | Oct. 26, 2018 | Oct. 31, 2018 | Sep. 30, 2018 | Aug. 31, 2018 | Nov. 30, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||||||||
Loss on extinguishment of debt | $ 0 | $ 90,569,000 | $ 12,458,000 | |||||
8.25% Senior Notes Due 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 8.25% | |||||||
Line of Credit and Secured Debt | Non-Recourse U.S. SPV Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, term | 5 years | |||||||
Senior Notes | Non-Recourse U.S. SPV Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 80,000,000 | |||||||
Senior Notes | 8.25% Senior Notes Due 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, term | 5 years | |||||||
Debt issuance costs capitalized | $ 11,700,000 | |||||||
Stated interest rate | 8.25% | 8.25% | 8.25% | |||||
Loss on extinguishment of debt | 69,200,000 | |||||||
Line of Credit | Non-Recourse U.S. SPV Facility | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | 70,000,000 | |||||||
Debt issuance costs capitalized | $ 5,300,000 | |||||||
Extinguishment of debt | $ 42,400,000 | |||||||
Secured Debt | Non-Recourse U.S. SPV Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum effective interest rate | 12.00% | |||||||
Commitment fee on unused portion | 0.50% | |||||||
Extinguishment of debt | $ 2,700,000 | $ 80,000,000 | ||||||
Loss on extinguishment of debt | $ 9,700,000 | |||||||
Secured Debt | Non-Recourse U.S. SPV Facility | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread | 1.00% |
DEBT - Ranking and Guarantees (
DEBT - Ranking and Guarantees (Details) - 8.25% Senior Notes Due 2025 | 12 Months Ended | ||
Dec. 31, 2019 | Sep. 30, 2018 | Aug. 31, 2018 | |
Debt Instrument [Line Items] | |||
Stated interest rate | 8.25% | ||
Senior Notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 8.25% | 8.25% | 8.25% |
Senior Notes | Prior to September 1, 2021 | |||
Debt Instrument [Line Items] | |||
Redemption price as percent of principal redeemed (as percent) | 40.00% | ||
Redemption price, percentage (as percent) | 108.20% | ||
Senior Notes | 12 months beginning September 1, 2021 | |||
Debt Instrument [Line Items] | |||
Redemption price, percentage (as percent) | 104.10% | ||
Senior Notes | 12 months beginning September 1, 2022 | |||
Debt Instrument [Line Items] | |||
Redemption price, percentage (as percent) | 102.10% | ||
Senior Notes | 12 months beginning September 1, 2023 and thereafter | |||
Debt Instrument [Line Items] | |||
Redemption price, percentage (as percent) | 100.00% |
DEBT - Future Maturities of Lon
DEBT - Future Maturities of Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
2020 | $ 0 | |
2021 | 0 | |
2022 | 38,414 | |
2023 | 76,829 | |
2024 | 0 | |
Thereafter | 690,000 | |
Debt (before deferred financing costs and discounts) | 805,243 | |
Less: deferred financing costs and discounts | 14,699 | |
Debt, net | $ 790,544 | $ 804,140 |
SHARE-BASED COMPENSATION - Addi
SHARE-BASED COMPENSATION - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 08, 2017 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock option grants in period (in shares) | 0 | 0 | 99,396 | ||
Share-based compensation expense | $ 10,323 | $ 8,210 | $ 965 | ||
Unrecognized compensation costs | $ 13,100 | ||||
Compensation cost not yet recognized, period for recognition | 1 year 7 months 6 days | ||||
2010 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | 2,160,000 | ||||
2017 Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | 5,000,000 | ||||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting rights (as percent) | 20.00% | ||||
Vesting period | 5 years | ||||
Term of award | 10 years | ||||
Expected volatility (as percent) | 45.30% | ||||
Expected term | 6 years 1 month 6 days | ||||
Risk-free interest rate (as percent) | 2.20% | ||||
Expected dividend yield (as percent) | 0.00% | ||||
Time-Based | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation costs | $ 10,300 | ||||
Market-Based | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Unrecognized compensation costs | $ 2,500 |
SHARE-BASED COMPENSATION - Stoc
SHARE-BASED COMPENSATION - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock Options | ||||
Beginning balance (in shares) | 1,445,332 | 1,977,480 | 1,879,308 | |
Granted (in shares) | 0 | 0 | 99,396 | |
Exercised (in shares) | (40,014) | (500,924) | 0 | |
Forfeited (in shares) | (696) | (31,224) | (1,224) | |
Ending balance (in shares) | 1,404,622 | 1,445,332 | 1,977,480 | 1,879,308 |
Weighted Average Exercise Price | ||||
Beginning balance (in usd per share) | $ 3.56 | $ 3.04 | $ 2.73 | |
Granted (in usd per share) | 0 | 0 | 8.86 | |
Exercised (in usd per share) | 3.71 | 1.46 | 0 | |
Forfeited (in usd per share) | 8.86 | 4.03 | 3.39 | |
Ending balance (in usd per share) | $ 3.56 | 3.56 | 3.04 | $ 2.73 |
Options exercisable (in shares) | 1,226,422 | |||
Options exercisable, weighted average exercise price (in usd per share) | $ 3.42 | |||
Options granted, weighted average grant date fair value (in usd per share) | 0 | $ 4.11 | ||
Options forfeited, weighted average grant date fair value (in usd per share) | $ 4.07 | $ 1.84 | ||
Options outstanding, weighted average remaining contractual term | 2 years 7 months 1 day | 3 years 8 months 1 day | 5 years 2 months 12 days | 4 years 7 months 6 days |
Options exercisable, weighted average remaining contractual term | 2 years 1 month 6 days | |||
Options outstanding, intrinsic value | $ 12.1 | $ 8.6 | $ 21.8 | $ 2.1 |
Options exercised, intrinsic value | 0.3 | $ 4 | ||
Options exercisable, intrinsic value | $ 10.7 |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summary of Restricted Stock Units (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Time-Based | |||
Restricted Stock Units | |||
Outstanding, beginning of period (in shares) | 1,060,350 | 1,516,241 | 0 |
Granted (in shares) | 598,114 | 73,663 | 1,516,241 |
Vested (in shares) | (514,552) | (508,126) | 0 |
Forfeited (in shares) | (82,159) | (21,428) | 0 |
Outstanding, end of period (in shares) | 1,061,753 | 1,060,350 | 1,516,241 |
Weighted Average Grant Date Fair Value | |||
Weighted average grant date fair value, beginning of period (in usd per share) | $ 14.29 | $ 14 | $ 0 |
Weighted average grant date fair value, granted (in usd per share) | 10.08 | 18.20 | 14 |
Weighted average grant date fair value, vested (in usd per share) | 14.21 | 14 | 0 |
Weighted average grant date fair value, forfeited (in usd per share) | 13.71 | 14 | 0 |
Weighted average grant date fair value, end of period (in usd per share) | $ 11.47 | $ 14.29 | $ 14 |
Market-Based | |||
Restricted Stock Units | |||
Outstanding, beginning of period (in shares) | 0 | 0 | 0 |
Granted (in shares) | 397,752 | 0 | 0 |
Vested (in shares) | 0 | 0 | 0 |
Forfeited (in shares) | (2,891) | 0 | 0 |
Outstanding, end of period (in shares) | 394,861 | 0 | 0 |
SHARE-BASED COMPENSATION - Shar
SHARE-BASED COMPENSATION - Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Pre-tax share-based compensation expense | $ 10,323 | $ 8,210 | $ 965 |
Income tax benefit | (2,632) | (2,217) | (386) |
Total share-based compensation expense, net of tax | $ 7,691 | $ 5,993 | $ 579 |
INCOME TAXES - Income Tax Expen
INCOME TAXES - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income (loss) before taxes: | |||
U.S. tax jurisdictions | $ 119,241 | $ 16,759 | $ 67,771 |
Non-U.S. tax jurisdictions | 23,214 | 1,359 | 34,485 |
Income from continuing operations before income taxes | 142,455 | 18,118 | 102,256 |
Current tax provision (benefit) | |||
Federal | 3,160 | (7,983) | 19,935 |
State | 395 | (1,518) | 2,409 |
Foreign | 930 | 7,748 | 10,542 |
Total current provision (benefit) | 4,485 | (1,753) | 32,886 |
Deferred tax provision (benefit) | |||
Federal | 22,978 | 7,471 | 6,283 |
State | 5,145 | 631 | 2,647 |
Foreign | 5,949 | (4,690) | (169) |
Total deferred tax provision (benefit) | 34,072 | 3,412 | 8,761 |
Total provision for income taxes | $ 38,557 | $ 1,659 | $ 41,647 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | 12 Months Ended | 24 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2016 | |
Income Tax Contingency [Line Items] | |||||
Transition tax expense (benefit) related to the deemed repatriation of unremitted earnings of foreign subsidiaries | $ (1,600,000) | $ 8,100,000 | $ 6,500,000 | ||
Tax benefit related to remeasurement of net deferred tax liabilities | 4,200,000 | ||||
Undistributed foreign earnings | $ 181,300,000 | ||||
Unrecognized tax benefits | 0 | 0 | 0 | ||
Federal net operating loss and capital loss carryforwards | 13,693,000 | 0 | 0 | ||
Deferred tax assets, valuation allowance | 8,328,000 | 6,996,000 | 4,375,000 | $ 6,996,000 | $ 3,717,000 |
Penalties and interest recorded | 0 | $ 0 | $ 0 | ||
Foreign | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carryforwards | 6,100,000 | ||||
Operating loss carryforwards, valuation allowance | 6,100,000 | ||||
State | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carryforwards | 1,900,000 | ||||
Operating loss carryforwards, valuation allowance | 500,000 | ||||
Canada Revenue Agency | Pro forma | |||||
Income Tax Contingency [Line Items] | |||||
Expected tax if earnings were distributed to the U.S. | $ 9,100,000 |
INCOME TAXES - Deferred Income
INCOME TAXES - Deferred Income Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets related to: | ||||
Accrued expenses and other reserves | $ 2,092 | $ 3,267 | ||
Lease liability | 32,009 | |||
Compensation accruals | 6,354 | 4,954 | ||
Deferred revenue | 461 | 78 | ||
Federal net operating loss and capital loss carryforwards | 13,693 | 0 | ||
State and provincial net operating loss carryforwards | 3,228 | 1,611 | ||
Foreign net operating loss and capital loss carryforwards | 4,754 | 3,592 | ||
Tax credit carryforwards | 158 | 0 | ||
Gross deferred tax assets | 62,749 | 13,502 | ||
Less: Valuation allowance | (8,328) | (6,996) | $ (4,375) | $ (3,717) |
Net deferred tax assets | 54,421 | 6,506 | ||
Deferred tax liabilities related to: | ||||
Property and equipment | (3,339) | (3,870) | ||
Right of use asset | (29,251) | |||
Goodwill and other intangible assets | (14,986) | (14,508) | ||
Prepaid expenses and other assets | (628) | (197) | ||
Loans receivable | (5,614) | (127) | ||
Gross deferred tax liabilities | (53,818) | (18,702) | ||
Net deferred tax liabilities | $ 603 | |||
Net deferred tax liabilities | $ (12,196) |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Net current deferred tax assets | $ 5,055 | $ 1,534 |
Net long-term deferred tax liabilities | (4,452) | (13,730) |
Net deferred tax liabilities | $ 603 | |
Net deferred tax liabilities | $ (12,196) |
INCOME TAXES - Effective Tax Ra
INCOME TAXES - Effective Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense using the statutory federal rate in effect | $ 29,916 | $ 3,805 | $ 35,790 |
Tax effect of: | |||
Effects of foreign rates different than U.S. statutory rate | (1,393) | (65) | (6,993) |
State, local and provincial income taxes, net of federal benefit | 8,959 | 313 | 7,128 |
Tax credits | (138) | (116) | (450) |
Nondeductible expenses | 33 | 77 | 409 |
Valuation allowance | 1,609 | 1,983 | 631 |
Deferred remeasurement | 0 | 0 | 683 |
Repatriation tax | 0 | (1,610) | 8,100 |
Deferred remeasurement due to the 2017 Tax Act | 0 | 0 | (4,162) |
Share-based compensation | 150 | (2,944) | 0 |
Other | (579) | 216 | 511 |
Total provision for income taxes | $ 38,557 | $ 1,659 | $ 41,647 |
Effective income tax rate (as percent) | 27.10% | 8.40% | 40.70% |
Statutory federal income tax rate (as percent) | 21.00% | 21.00% | 35.00% |
INCOME TAXES - Valuation Allowa
INCOME TAXES - Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred Tax Assets, Valuation Allowance [Roll Forward] | |||
Balance at the beginning of year | $ 6,996 | $ 4,375 | $ 3,717 |
Increase to balance charged as expense | 1,609 | 1,983 | 631 |
Effect of foreign currency translation | (277) | 638 | 27 |
Balance at end of year | $ 8,328 | $ 6,996 | $ 4,375 |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of Assets and Liabilities Not Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financial assets: | |||
Restricted cash | $ 34,779 | $ 25,439 | $ 8,548 |
Fair Value, Recurring | Carrying Value | |||
Financial assets: | |||
Cash Surrender Value of Life Insurance | 6,171 | 4,790 | |
Financial liabilities: | |||
Non-qualified deferred compensation plan | 4,666 | 3,639 | |
Fair Value, Recurring | Estimated Fair Value | |||
Financial assets: | |||
Cash Surrender Value of Life Insurance | 6,171 | 4,790 | |
Financial liabilities: | |||
Non-qualified deferred compensation plan | 4,666 | 3,639 | |
Fair Value, Recurring | Estimated Fair Value | Level 1 | |||
Financial assets: | |||
Cash Surrender Value of Life Insurance | 6,171 | 4,790 | |
Financial liabilities: | |||
Non-qualified deferred compensation plan | 4,666 | 3,639 | |
Fair Value, Recurring | Estimated Fair Value | Level 2 | |||
Financial assets: | |||
Cash Surrender Value of Life Insurance | 0 | 0 | |
Financial liabilities: | |||
Non-qualified deferred compensation plan | 0 | 0 | |
Fair Value, Recurring | Estimated Fair Value | Level 3 | |||
Financial assets: | |||
Cash Surrender Value of Life Insurance | 0 | 0 | |
Financial liabilities: | |||
Non-qualified deferred compensation plan | 0 | 0 | |
Fair Value, Nonrecurring | Carrying Value | |||
Financial assets: | |||
Cash | 75,242 | 61,175 | |
Restricted cash | 34,779 | 25,439 | |
Loans receivable, net | 558,993 | 497,534 | |
Equity method investment | 10,068 | 6,558 | |
Financial liabilities: | |||
Liability for losses on CSO lender-owned consumer loans | 10,623 | 12,007 | |
Fair Value, Nonrecurring | Carrying Value | 8.25% Senior Notes Due 2025 | |||
Financial liabilities: | |||
Debt | 678,323 | 676,661 | |
Fair Value, Nonrecurring | Carrying Value | Non-Recourse Canada SPV Facility | |||
Financial liabilities: | |||
Debt | 112,221 | 107,479 | |
Fair Value, Nonrecurring | Carrying Value | Senior Revolver | |||
Financial liabilities: | |||
Debt | 20,000 | ||
Fair Value, Nonrecurring | Estimated Fair Value | |||
Financial assets: | |||
Cash | 75,242 | 61,175 | |
Restricted cash | 34,779 | 25,439 | |
Loans receivable, net | 558,993 | 497,534 | |
Equity method investment | 10,068 | 6,558 | |
Financial liabilities: | |||
Liability for losses on CSO lender-owned consumer loans | 10,623 | 12,007 | |
Fair Value, Nonrecurring | Estimated Fair Value | 8.25% Senior Notes Due 2025 | |||
Financial liabilities: | |||
Debt | 596,924 | 531,179 | |
Fair Value, Nonrecurring | Estimated Fair Value | Non-Recourse Canada SPV Facility | |||
Financial liabilities: | |||
Debt | 115,243 | 111,335 | |
Fair Value, Nonrecurring | Estimated Fair Value | Senior Revolver | |||
Financial liabilities: | |||
Debt | 20,000 | ||
Fair Value, Nonrecurring | Estimated Fair Value | Level 1 | |||
Financial assets: | |||
Cash | 75,242 | 61,175 | |
Restricted cash | 34,779 | 25,439 | |
Loans receivable, net | 0 | 0 | |
Equity method investment | 0 | 0 | |
Financial liabilities: | |||
Liability for losses on CSO lender-owned consumer loans | 0 | 0 | |
Fair Value, Nonrecurring | Estimated Fair Value | Level 1 | 8.25% Senior Notes Due 2025 | |||
Financial liabilities: | |||
Debt | 0 | 0 | |
Fair Value, Nonrecurring | Estimated Fair Value | Level 1 | Non-Recourse Canada SPV Facility | |||
Financial liabilities: | |||
Debt | 0 | 0 | |
Fair Value, Nonrecurring | Estimated Fair Value | Level 1 | Senior Revolver | |||
Financial liabilities: | |||
Debt | 0 | ||
Fair Value, Nonrecurring | Estimated Fair Value | Level 2 | |||
Financial assets: | |||
Cash | 0 | 0 | |
Restricted cash | 0 | 0 | |
Loans receivable, net | 0 | 0 | |
Equity method investment | 0 | 0 | |
Financial liabilities: | |||
Liability for losses on CSO lender-owned consumer loans | 0 | 0 | |
Fair Value, Nonrecurring | Estimated Fair Value | Level 2 | 8.25% Senior Notes Due 2025 | |||
Financial liabilities: | |||
Debt | 596,924 | 531,179 | |
Fair Value, Nonrecurring | Estimated Fair Value | Level 2 | Non-Recourse Canada SPV Facility | |||
Financial liabilities: | |||
Debt | 0 | 0 | |
Fair Value, Nonrecurring | Estimated Fair Value | Level 2 | Senior Revolver | |||
Financial liabilities: | |||
Debt | 0 | ||
Fair Value, Nonrecurring | Estimated Fair Value | Level 3 | |||
Financial assets: | |||
Cash | 0 | 0 | |
Restricted cash | 0 | 0 | |
Loans receivable, net | 558,993 | 497,534 | |
Equity method investment | 10,068 | 6,558 | |
Financial liabilities: | |||
Liability for losses on CSO lender-owned consumer loans | 10,623 | 12,007 | |
Fair Value, Nonrecurring | Estimated Fair Value | Level 3 | 8.25% Senior Notes Due 2025 | |||
Financial liabilities: | |||
Debt | 0 | 0 | |
Fair Value, Nonrecurring | Estimated Fair Value | Level 3 | Non-Recourse Canada SPV Facility | |||
Financial liabilities: | |||
Debt | $ 115,243 | 111,335 | |
Fair Value, Nonrecurring | Estimated Fair Value | Level 3 | Senior Revolver | |||
Financial liabilities: | |||
Debt | $ 20,000 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2019 | Sep. 30, 2018 | Aug. 31, 2018 | |
8.25% Senior Notes Due 2025 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Stated interest rate | 8.25% | |||
8.25% Senior Notes Due 2025 | Senior Notes | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Stated interest rate | 8.25% | 8.25% | 8.25% | |
Katapult | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loss on investment | $ 3.7 | $ 2.5 | ||
Ownership percentage | 43.80% | 43.80% |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) | Mar. 07, 2018USD ($) | Jan. 05, 2018USD ($) | Dec. 11, 2017USD ($)$ / sharesshares | Dec. 06, 2017 | Nov. 30, 2017USD ($) | Nov. 02, 2017USD ($) | Oct. 31, 2017USD ($) | Aug. 31, 2017USD ($) | May 31, 2017USD ($) | Feb. 28, 2017USD ($) | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($) | Feb. 29, 2020$ / shares | Feb. 05, 2020$ / shares | Nov. 02, 2018USD ($) | Dec. 07, 2017$ / shares |
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||
Stock split conversion ratio | 36 | 36 | |||||||||||||||
Common stock and preferred stock, authorized (in shares) | shares | 250,000,000 | ||||||||||||||||
Common stock, authorized (in shares) | shares | 225,000,000 | 225,000,000 | 225,000,000 | ||||||||||||||
Common stock, par value (in usd per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||||||||
Preferred stock, shares authorized (in shares) | shares | 25,000,000 | 25,000,000 | 25,000,000 | ||||||||||||||
Preferred stock par value (in usd per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||||||||
Proceeds from IPO | $ 81,100,000 | ||||||||||||||||
Net proceeds from issuance of common stock | $ 77,500,000 | $ 0 | $ 11,167,000 | $ 81,117,000 | |||||||||||||
Proceeds from dividends received | $ 140,000,000 | $ 130,100,000 | |||||||||||||||
Dividends paid to stockholders | $ 140,000,000 | $ 5,500,000 | $ 8,500,000 | $ 28,000,000 | $ 0 | $ 0 | $ 182,000,000 | ||||||||||
12.00% Senior Secured Notes | Senior Notes | |||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 135,000,000 | $ 470,000,000 | $ 135,000,000 | ||||||||||||||
Stated interest rate | 12.00% | 12.00% | 12.00% | ||||||||||||||
IPO | |||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||
Number of shares issued via sale of stock (in shares) | shares | 6,666,667 | ||||||||||||||||
Sale price (in usd per share) | $ / shares | $ 14 | ||||||||||||||||
Over-Allotment Option | |||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||
Net proceeds from issuance of common stock | $ 13,100,000 | ||||||||||||||||
Subsequent event | |||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||
Dividend payable (in dollars per share) | $ / shares | $ 0.055 | $ 0.055 | |||||||||||||||
Dividend payable, annualized (in dollars per share) | $ / shares | $ 0.22 | $ 0.22 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash paid for: | |||
Interest | $ 69,134 | $ 84,823 | $ 60,054 |
Income taxes, net of refunds | 2,355 | 16,311 | 26,863 |
Non-cash investing activities: | |||
Property and equipment accrued in accounts payable | $ 631 | $ 1,718 | $ 1,631 |
SEGMENT REPORTING - Narrative (
SEGMENT REPORTING - Narrative (Details) | 12 Months Ended |
Dec. 31, 2019statesegmentstore | |
Segment Reporting Information [Line Items] | |
Number of operating segments | segment | 2 |
Number of reportable segments | segment | 2 |
United States | |
Segment Reporting Information [Line Items] | |
Number of stores | store | 214 |
United States | Online Products | |
Segment Reporting Information [Line Items] | |
Number of states in which entity operates | 27 |
Canada | Retail Products | |
Segment Reporting Information [Line Items] | |
Number of stores | store | 202 |
Number of states in which entity operates | 7 |
Canada | Online Products | |
Segment Reporting Information [Line Items] | |
Number of states in which entity operates | 5 |
SEGMENT REPORTING - Summary of
SEGMENT REPORTING - Summary of Financial Information by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 302,294 | $ 297,264 | $ 264,300 | $ 277,939 | $ 287,579 | $ 269,482 | $ 237,169 | $ 250,843 | $ 1,141,797 | $ 1,045,073 | $ 924,137 |
Net revenues | 172,005 | 173,397 | 152,290 | 175,554 | 156,901 | 141,790 | 150,822 | 173,960 | 673,246 | 623,473 | 611,571 |
Consolidated gross margin | 95,299 | $ 96,639 | $ 81,181 | $ 105,497 | 81,682 | $ 60,594 | $ 77,348 | $ 105,846 | 378,616 | 325,470 | 335,165 |
Consolidated operating profit | 142,455 | 18,118 | 102,256 | ||||||||
Consolidated expenditures for long-lived assets | 14,612 | 14,033 | 8,717 | ||||||||
Total gross loans receivable | 665,828 | 571,531 | 665,828 | 571,531 | |||||||
U.S. | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 913,506 | 853,141 | 737,729 | ||||||||
Net revenues | 521,401 | 504,530 | 470,238 | ||||||||
Consolidated gross margin | 302,952 | 284,828 | 267,215 | ||||||||
Consolidated operating profit | 99,152 | 1,117 | 51,459 | ||||||||
Consolidated expenditures for long-lived assets | 12,733 | 11,105 | 7,406 | ||||||||
Total gross loans receivable | 363,453 | 361,473 | 363,453 | 361,473 | |||||||
Canada | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 228,291 | 191,932 | 186,408 | ||||||||
Net revenues | 151,845 | 118,943 | 141,333 | ||||||||
Consolidated gross margin | 75,664 | 40,642 | 67,950 | ||||||||
Consolidated operating profit | 43,303 | 17,001 | 50,797 | ||||||||
Consolidated expenditures for long-lived assets | 1,879 | 2,928 | $ 1,311 | ||||||||
Total gross loans receivable | $ 302,375 | $ 210,058 | $ 302,375 | $ 210,058 |
SEGMENT REPORTING - Summary o_2
SEGMENT REPORTING - Summary of Long-lived Assets by Geographical Region (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net long-lived assets | $ 70,811 | $ 76,750 |
U.S. | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net long-lived assets | 43,618 | 47,918 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net long-lived assets | $ 27,193 | $ 28,832 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | Dec. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Accrual for costs related to litigation | $ 2.5 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)options | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Operating lease original term of contract | 5 years | ||
Number of renewal terms | options | 2 | ||
Operating lease renewal term | 5 years | ||
Operating lease payments | $ 34.9 | ||
ROU assets obtained in exchange for lease liabilities | $ 15.8 | ||
Weighted average remaining lease term | 6 years 1 month 10 days | ||
Weighted average operating discount rate | 10.30% | ||
Third-Party | |||
Lessee, Lease, Description [Line Items] | |||
Rent expense | $ 22.4 | $ 22.1 | |
Related-Party | |||
Lessee, Lease, Description [Line Items] | |||
Rent expense | $ 3.5 | $ 3.3 |
LEASES - Summary of Operating L
LEASES - Summary of Operating Lease Costs (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Operating lease cost | $ 33,943 |
Third-Party | |
Lessee, Lease, Description [Line Items] | |
Operating lease cost | 30,479 |
Related-Party | |
Lessee, Lease, Description [Line Items] | |
Operating lease cost | $ 3,464 |
LEASES - Schedule of Future Min
LEASES - Schedule of Future Minimum Lease Payments, ASC 842 (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |
2020 | $ 34,719 |
2021 | 31,293 |
2022 | 28,164 |
2023 | 20,896 |
2024 | 15,624 |
Thereafter | 39,706 |
Total | 170,402 |
Less: Imputed interest | (45,404) |
Operating lease liabilities | 124,998 |
Third-Party | |
Lessee, Lease, Description [Line Items] | |
2020 | 30,965 |
2021 | 27,520 |
2022 | 24,497 |
2023 | 19,574 |
2024 | 14,657 |
Thereafter | 36,170 |
Total | 153,383 |
Less: Imputed interest | (41,237) |
Operating lease liabilities | 112,146 |
Related-Party | |
Lessee, Lease, Description [Line Items] | |
2020 | 3,754 |
2021 | 3,773 |
2022 | 3,667 |
2023 | 1,322 |
2024 | 967 |
Thereafter | 3,536 |
Total | 17,019 |
Less: Imputed interest | (4,167) |
Operating lease liabilities | $ 12,852 |
LEASES - Schedule of Future M_2
LEASES - Schedule of Future Minimum Lease Payments, ASC 840 (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Lessee, Lease, Description [Line Items] | |
2019 | $ 27,541 |
2020 | 23,832 |
2021 | 20,625 |
2022 | 17,880 |
2023 | 10,974 |
Thereafter | 14,176 |
Total | 115,028 |
Third-Party | |
Lessee, Lease, Description [Line Items] | |
2019 | 24,211 |
2020 | 20,547 |
2021 | 17,301 |
2022 | 14,558 |
2023 | 10,269 |
Thereafter | 13,446 |
Total | 100,332 |
Related-Party | |
Lessee, Lease, Description [Line Items] | |
2019 | 3,330 |
2020 | 3,285 |
2021 | 3,324 |
2022 | 3,322 |
2023 | 705 |
Thereafter | 730 |
Total | $ 14,696 |
RELATED-PARTY TRANSACTIONS (Det
RELATED-PARTY TRANSACTIONS (Details) - Affiliated Entity - Ad Astra - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commissions | |||
Related Party Transaction [Line Items] | |||
Related party transaction, rate (as percent) | 30.00% | ||
Settlement period | 1 month | ||
Prepaid expenses and other | $ 1.4 | $ 1.1 | $ 0.7 |
Other costs of providing services | $ 15.5 | $ 13.8 | $ 12.4 |
Minimum | |||
Related Party Transaction [Line Items] | |||
Period of delinquency for referral to related party for collection | 91 days | ||
Maximum | |||
Related Party Transaction [Line Items] | |||
Period of delinquency for referral to related party for collection | 121 days |
BENEFIT PLANS (Details)
BENEFIT PLANS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Deferred compensation plan, vesting period of employer contributions | 3 years | ||
Amount of deferred compensation plan liability | $ 4.7 | $ 3.6 | $ 3.3 |
Registered Retirement Savings Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percent of employer's match (as percent) | 50.00% | ||
Percent of employees compensation (as percent) | 6.00% | ||
Contributions | $ 0.3 | 0.2 | 0.2 |
401(k) Retirement Savings Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percent of employer's match (as percent) | 50.00% | ||
Percent of employees compensation (as percent) | 6.00% | ||
Vesting rights (as percent) | 33.33% | ||
Contributions | $ 1.5 | $ 1.4 | $ 1.3 |
Maximum employee contribution (as percent) | 90.00% | ||
2018 Employee Stock Purchase Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Number of shares authorized (in shares) | 2,500,000 | ||
After One Year | Registered Retirement Savings Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Vesting rights (as percent) | 50.00% | ||
After Two Years | Registered Retirement Savings Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Vesting rights (as percent) | 100.00% |
EARNINGS PER SHARE - Summary of
EARNINGS PER SHARE - Summary of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net income from continuing operations | $ 29,571 | $ 27,987 | $ 17,667 | $ 28,673 | $ 15,418 | $ (42,590) | $ 18,718 | $ 24,913 | $ 103,898 | $ 16,459 | $ 60,609 |
Net (loss) income from discontinued operations, before income tax | 647 | (598) | (834) | 8,375 | (29,716) | (4,432) | (2,743) | (1,621) | 7,590 | (38,512) | (11,456) |
Net income (loss) | $ 30,218 | $ 27,389 | $ 16,833 | $ 37,048 | $ (14,298) | $ (47,022) | $ 15,975 | $ 23,292 | $ 111,488 | $ (22,053) | $ 49,153 |
Weighted average common shares - basic (in shares) | 41,500 | 44,422 | 46,451 | 46,424 | 46,158 | 45,853 | 45,650 | 45,506 | 44,685 | 45,815 | 38,351 |
Dilutive effect of stock options and restricted stock units (in shares) | 1,289 | 2,150 | 926 | ||||||||
Weighted average common shares - diluted (in shares) | 43,243 | 46,010 | 47,107 | 47,319 | 47,773 | 45,853 | 47,996 | 47,416 | 45,974 | 47,965 | 39,277 |
Basic earnings (loss) per share: | |||||||||||
Continuing operations (in dollars per share) | $ 0.71 | $ 0.63 | $ 0.38 | $ 0.62 | $ 0.33 | $ (0.93) | $ 0.41 | $ 0.55 | $ 2.33 | $ 0.36 | $ 1.58 |
Discontinued operations (in dollars per share) | 0.02 | (0.01) | (0.02) | 0.18 | (0.64) | (0.10) | (0.06) | (0.04) | 0.17 | (0.84) | (0.30) |
Basic earnings per share (in dollars per share) | 0.73 | 0.62 | 0.36 | 0.80 | (0.31) | (1.03) | 0.35 | 0.51 | 2.50 | (0.48) | 1.28 |
Diluted earnings (loss) per share: | |||||||||||
Continuing operations (in dollars per share) | 0.68 | 0.61 | 0.38 | 0.61 | 0.32 | (0.93) | 0.39 | 0.53 | 2.26 | 0.34 | 1.54 |
Discontinued operations (in dollars per share) | 0.01 | (0.01) | (0.02) | 0.18 | (0.62) | (0.10) | (0.06) | (0.03) | 0.17 | (0.80) | (0.29) |
Diluted earnings per share (in dollars per share) | $ 0.69 | $ 0.60 | $ 0.36 | $ 0.79 | $ (0.30) | $ (1.03) | $ 0.33 | $ 0.50 | $ 2.43 | $ (0.46) | $ 1.25 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0.4 | 0 | 0 |
QUARTERLY FINANCIAL DATA (UNA_3
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 302,294 | $ 297,264 | $ 264,300 | $ 277,939 | $ 287,579 | $ 269,482 | $ 237,169 | $ 250,843 | $ 1,141,797 | $ 1,045,073 | $ 924,137 |
Provision for losses | 130,289 | 123,867 | 112,010 | 102,385 | 130,678 | 127,692 | 86,347 | 76,883 | 468,551 | 421,600 | 312,566 |
Net revenue | 172,005 | 173,397 | 152,290 | 175,554 | 156,901 | 141,790 | 150,822 | 173,960 | 673,246 | 623,473 | 611,571 |
Total cost of providing services | 76,706 | 76,758 | 71,109 | 70,057 | 75,219 | 81,196 | 73,474 | 68,114 | 294,630 | 298,003 | 276,406 |
Gross margin | 95,299 | 96,639 | 81,181 | 105,497 | 81,682 | 60,594 | 77,348 | 105,846 | 378,616 | 325,470 | 335,165 |
Net income from continuing operations | 29,571 | 27,987 | 17,667 | 28,673 | 15,418 | (42,590) | 18,718 | 24,913 | 103,898 | 16,459 | 60,609 |
Net income (loss) from discontinued operations, net of tax | 647 | (598) | (834) | 8,375 | (29,716) | (4,432) | (2,743) | (1,621) | 7,590 | (38,512) | (11,456) |
Net income | $ 30,218 | $ 27,389 | $ 16,833 | $ 37,048 | $ (14,298) | $ (47,022) | $ 15,975 | $ 23,292 | $ 111,488 | $ (22,053) | $ 49,153 |
Continuing operations (in dollars per share) | $ 0.71 | $ 0.63 | $ 0.38 | $ 0.62 | $ 0.33 | $ (0.93) | $ 0.41 | $ 0.55 | $ 2.33 | $ 0.36 | $ 1.58 |
Discontinued operations (in dollars per share) | 0.02 | (0.01) | (0.02) | 0.18 | (0.64) | (0.10) | (0.06) | (0.04) | 0.17 | (0.84) | (0.30) |
Basic earnings per share (in dollars per share) | 0.73 | 0.62 | 0.36 | 0.80 | (0.31) | (1.03) | 0.35 | 0.51 | 2.50 | (0.48) | 1.28 |
Continuing operations (in dollars per share) | 0.68 | 0.61 | 0.38 | 0.61 | 0.32 | (0.93) | 0.39 | 0.53 | 2.26 | 0.34 | 1.54 |
Discontinued operations (in dollars per share) | 0.01 | (0.01) | (0.02) | 0.18 | (0.62) | (0.10) | (0.06) | (0.03) | 0.17 | (0.80) | (0.29) |
Diluted earnings per share (in dollars per share) | $ 0.69 | $ 0.60 | $ 0.36 | $ 0.79 | $ (0.30) | $ (1.03) | $ 0.33 | $ 0.50 | $ 2.43 | $ (0.46) | $ 1.25 |
Weighted average common shares - basic (in shares) | 41,500 | 44,422 | 46,451 | 46,424 | 46,158 | 45,853 | 45,650 | 45,506 | 44,685 | 45,815 | 38,351 |
Weighted average common shares - diluted (in shares) | 43,243 | 46,010 | 47,107 | 47,319 | 47,773 | 45,853 | 47,996 | 47,416 | 45,974 | 47,965 | 39,277 |
DISCONTINUED OPERATIONS - Narra
DISCONTINUED OPERATIONS - Narrative (Details) | 12 Months Ended |
Dec. 31, 2019 | |
U.K. Segment | Discontinued Operations, Disposed of by Means Other than Sale | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Effective tax rate | 119.40% |
SHARE REPURCHASE PROGRAM (Detai
SHARE REPURCHASE PROGRAM (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||
Mar. 06, 2020 | Feb. 05, 2020 | Aug. 31, 2019 | Dec. 31, 2019 | Apr. 30, 2019 | Dec. 31, 2018 | Dec. 11, 2017 | ||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Total value of shares repurchased | [1] | $ 72,343,000 | ||||||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Repurchase Program, 2019 | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Total authorized repurchase amount for the period presented | $ 50,000,000 | $ 50,000,000 | ||||||
Total number of shares repurchased (in shares) | 3,614,541 | |||||||
Average price paid per share (in dollars per share) | $ 12.52 | |||||||
Total value of shares repurchased | $ 45,241,000 | |||||||
Remaining authorized repurchase amount | $ 4,759,000 | |||||||
Share Repurchase Agreement with FFL | Affiliated Entity | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Total number of shares repurchased (in shares) | 2,000,000 | |||||||
Average price paid per share (in dollars per share) | $ 13.55 | |||||||
Common stock, par value (in usd per share) | $ 0.001 | |||||||
Subsequent event | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Total number of shares repurchased (in shares) | 455,255 | |||||||
Subsequent event | Repurchase Program, 2019 | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Total number of shares repurchased (in shares) | 455,255 | |||||||
Average price paid per share (in dollars per share) | $ 10.45 | |||||||
Total value of shares repurchased | $ 4,759,000 | |||||||
Subsequent event | Repurchase Program, 2020 | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Total authorized repurchase amount for the period presented | $ 25,000,000 | |||||||
Total number of shares repurchased (in shares) | 51,302 | |||||||
Average price paid per share (in dollars per share) | $ 9.75 | |||||||
Total value of shares repurchased | $ 500,000 | |||||||
[1] | Includes the repurchase of 2,000,000 shares of common stock from FFL for $13.55 per share. See Note 23 - "Share Repurchase Program" for additional information. |
DISCONTINUED OPERATIONS - Sched
DISCONTINUED OPERATIONS - Schedules of Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating expense (income) | |||||||||||
Loss from operations of discontinued operations before income taxes | $ (39,048) | $ (38,682) | $ (10,527) | ||||||||
(Benefit) / provision for income tax | (46,638) | (170) | 929 | ||||||||
Net income (loss) from discontinued operations | $ 647 | $ (598) | $ (834) | $ 8,375 | $ (29,716) | $ (4,432) | $ (2,743) | $ (1,621) | 7,590 | (38,512) | (11,456) |
ASSETS | |||||||||||
Total assets classified as discontinued operations in the Consolidated Balance Sheets | 0 | 34,861 | 0 | 34,861 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Total liabilities classified as discontinued operations in the Consolidated Balance Sheets | 0 | 8,882 | 0 | 8,882 | |||||||
Cash Flow Disclosures | |||||||||||
Net cash (used in) provided by discontinued operating activities | (504) | 10,808 | 9,666 | ||||||||
Net cash used in discontinued investing activities | (14,213) | (27,891) | (15,761) | ||||||||
U.K. Segment | Discontinued Operations, Disposed of by Means Other than Sale | |||||||||||
Income Statement Disclosures | |||||||||||
Revenue | 6,957 | 49,238 | 39,496 | ||||||||
Provision for losses | 1,703 | 21,632 | 13,660 | ||||||||
Net revenue | 5,254 | 27,606 | 25,836 | ||||||||
Cost of providing services | |||||||||||
Advertising | 775 | 8,970 | 5,495 | ||||||||
Non-advertising costs of providing services | 307 | 3,209 | 6,269 | ||||||||
Total cost of providing services | 1,082 | 12,179 | 11,764 | ||||||||
Gross margin | 4,172 | 15,427 | 14,072 | ||||||||
Operating expense (income) | |||||||||||
Corporate, district and other | 3,810 | 31,639 | 17,218 | ||||||||
Interest income | (4) | (26) | (12) | ||||||||
Restructuring costs | 0 | 0 | 7,393 | ||||||||
Goodwill impairment | 0 | 22,496 | 0 | ||||||||
Loss on disposition | 39,414 | 0 | 0 | ||||||||
Total operating expense | 43,220 | 54,109 | 24,599 | ||||||||
Loss from operations of discontinued operations before income taxes | (39,048) | (38,682) | (10,527) | ||||||||
(Benefit) / provision for income tax | (46,638) | (170) | 929 | ||||||||
Net income (loss) from discontinued operations | 7,590 | (38,512) | (11,456) | ||||||||
ASSETS | |||||||||||
Cash | 0 | 9,859 | 0 | 9,859 | |||||||
Restricted cash | 0 | 3,384 | 0 | 3,384 | |||||||
Gross loans receivable | 0 | 25,256 | 0 | 25,256 | |||||||
Less: allowance for loan losses | 0 | (5,387) | 0 | (5,387) | |||||||
Loans receivable, net | 0 | 19,869 | 0 | 19,869 | |||||||
Prepaid expenses and other | 0 | 1,482 | 0 | 1,482 | |||||||
Other | 0 | 267 | 0 | 267 | |||||||
Total assets classified as discontinued operations in the Consolidated Balance Sheets | 0 | 34,861 | 0 | 34,861 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Accounts payable and accrued liabilities | 0 | 8,136 | 0 | 8,136 | |||||||
Deferred revenue | 0 | 180 | 0 | 180 | |||||||
Accrued interest | 0 | (5) | 0 | (5) | |||||||
Deferred rent | 0 | 149 | 0 | 149 | |||||||
Other long-term liabilities | 0 | 422 | 0 | 422 | |||||||
Total liabilities classified as discontinued operations in the Consolidated Balance Sheets | $ 0 | $ 8,882 | 0 | 8,882 | |||||||
Cash Flow Disclosures | |||||||||||
Net cash (used in) provided by discontinued operating activities | (504) | 10,808 | 9,666 | ||||||||
Net cash used in discontinued investing activities | (14,213) | (27,891) | (15,761) | ||||||||
Net cash used in discontinued financing activities | $ 0 | $ 0 | $ 0 |
SUBSEQUENT EVENTS - Narrative (
SUBSEQUENT EVENTS - Narrative (Details) - USD ($) | Feb. 04, 2020 | Jan. 03, 2020 | Mar. 06, 2020 | Feb. 05, 2020 | Dec. 31, 2019 | Dec. 31, 2019 | Feb. 29, 2020 | Apr. 30, 2019 | |
Subsequent Event [Line Items] | |||||||||
Total value of shares repurchased | [1] | $ 72,343,000 | |||||||
Subsequent event | |||||||||
Subsequent Event [Line Items] | |||||||||
Total number of shares repurchased (in shares) | 455,255 | ||||||||
Dividend payable (in dollars per share) | $ 0.055 | $ 0.055 | |||||||
Dividend payable, annualized (in dollars per share) | $ 0.22 | $ 0.22 | |||||||
Ad Astra | |||||||||
Subsequent Event [Line Items] | |||||||||
Acquisition price | $ 15,800,000 | ||||||||
Ad Astra | Subsequent event | |||||||||
Subsequent Event [Line Items] | |||||||||
Acquisition price | $ 17,800,000 | ||||||||
Repurchase Program, 2019 | |||||||||
Subsequent Event [Line Items] | |||||||||
Total authorized repurchase amount for the period presented | $ 50,000,000 | $ 50,000,000 | $ 50,000,000 | ||||||
Total number of shares repurchased (in shares) | 3,614,541 | ||||||||
Average price paid per share (in dollars per share) | $ 12.52 | ||||||||
Total value of shares repurchased | $ 45,241,000 | ||||||||
Repurchase Program, 2019 | Subsequent event | |||||||||
Subsequent Event [Line Items] | |||||||||
Total number of shares repurchased (in shares) | 455,255 | ||||||||
Average price paid per share (in dollars per share) | $ 10.45 | ||||||||
Total value of shares repurchased | $ 4,759,000 | ||||||||
Repurchase Program, 2020 | Subsequent event | |||||||||
Subsequent Event [Line Items] | |||||||||
Total authorized repurchase amount for the period presented | $ 25,000,000 | ||||||||
Total number of shares repurchased (in shares) | 51,302 | ||||||||
Average price paid per share (in dollars per share) | $ 9.75 | ||||||||
Total value of shares repurchased | $ 500,000 | ||||||||
Non-Recourse Revolving Credit Facility | Line of Credit | Revolving Credit Facility | Subsequent event | |||||||||
Subsequent Event [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 200,000,000 | ||||||||
Advance rate | 90.00% | ||||||||
London Interbank Offered Rate (LIBOR) | Non-Recourse Revolving Credit Facility | Line of Credit | Revolving Credit Facility | Subsequent event | |||||||||
Subsequent Event [Line Items] | |||||||||
Basis spread | 5.75% | ||||||||
[1] | Includes the repurchase of 2,000,000 shares of common stock from FFL for $13.55 per share. See Note 23 - "Share Repurchase Program" for additional information. |
SUBSEQUENT EVENTS - Schedule of
SUBSEQUENT EVENTS - Schedule of Share Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Mar. 06, 2020 | Feb. 05, 2020 | Dec. 31, 2019 | ||
Subsequent Event [Line Items] | ||||
Total value of shares repurchased | [1] | $ 72,343 | ||
Subsequent event | ||||
Subsequent Event [Line Items] | ||||
Total number of shares repurchased (in shares) | 455,255 | |||
Repurchase Program, 2019 | ||||
Subsequent Event [Line Items] | ||||
Total number of shares repurchased (in shares) | 3,614,541 | |||
Average price paid per share (in dollars per share) | $ 12.52 | |||
Total value of shares repurchased | $ 45,241 | |||
Repurchase Program, 2019 | Subsequent event | ||||
Subsequent Event [Line Items] | ||||
Total number of shares repurchased (in shares) | 455,255 | |||
Average price paid per share (in dollars per share) | $ 10.45 | |||
Total value of shares repurchased | $ 4,759 | |||
Repurchase Program, 2020 | Subsequent event | ||||
Subsequent Event [Line Items] | ||||
Total number of shares repurchased (in shares) | 51,302 | |||
Average price paid per share (in dollars per share) | $ 9.75 | |||
Total value of shares repurchased | $ 500 | |||
[1] | Includes the repurchase of 2,000,000 shares of common stock from FFL for $13.55 per share. See Note 23 - "Share Repurchase Program" for additional information. |