Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 29, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-38315 | |
Entity Registrant Name | CURO GROUP HOLDINGS CORP. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 90-0934597 | |
Entity Address, Address Line One | 3615 North Ridge Road | |
Entity Address, City or Town | Wichita | |
Entity Address, State or Province | KS | |
Entity Address, Postal Zip Code | 67205 | |
City Area Code | 316 | |
Local Phone Number | 772-3801 | |
Title of 12(b) Security | Common stock, $0.001 par value per share | |
Trading Symbol | CURO | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 40,452,336 | |
Entity Central Index Key | 0001711291 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 205,785 | $ 213,343 |
Restricted cash (includes restricted cash of consolidated VIEs of $42,214 and $31,994 as of September 30, 2021 and December 31, 2020, respectively) | 66,168 | 54,765 |
Gross loans receivable (includes loans of consolidated VIEs of $700,834 and $360,431 as of September 30, 2021 and December 31, 2020, respectively) | 882,356 | 553,722 |
Less: Allowance for loan losses (includes allowance for loan losses of consolidated VIEs of $51,642 and $54,129 as of September 30, 2021 and December 31, 2020, respectively) | (72,543) | (86,162) |
Loans receivable, net | 809,813 | 467,560 |
Income taxes receivable | 23,806 | 32,062 |
Prepaid expenses and other (includes prepaid expenses and other of consolidated VIEs of $0 and $388 as of September 30, 2021 and December 31, 2020, respectively) | 31,558 | 27,994 |
Property and equipment, net | 48,001 | 59,749 |
Investments in Katapult | 14,919 | 27,370 |
Right of use asset - operating leases | 102,296 | 115,032 |
Deferred tax assets | 7,850 | 0 |
Goodwill | 175,973 | 136,091 |
Intangibles, net | 96,524 | 40,425 |
Other assets | 9,430 | 8,595 |
Total Assets | 1,592,123 | 1,182,986 |
Liabilities | ||
Accounts payable and accrued liabilities (includes accounts payable and accrued liabilities of consolidated VIEs of $6,840 and $34,055 as of September 30, 2021 and December 31, 2020, respectively) | 75,701 | 49,624 |
Deferred revenue | 15,243 | 5,394 |
Lease liability - operating leases | 108,655 | 122,648 |
Contingent consideration related to acquisition | 24,129 | 0 |
Accrued interest (includes accrued interest of consolidated VIEs of $1,418 and $1,147 as of September 30, 2021 and December 31, 2020, respectively) | 11,106 | 20,123 |
Liability for losses on CSO lender-owned consumer loans | 7,007 | 7,228 |
Debt (includes debt and issuance costs of consolidated VIEs of $407,214 and $9,749 as of September 30, 2021 and $147,427 and $7,766 as of December 31, 2020, respectively) | 1,131,998 | 819,661 |
Other long-term liabilities | 16,185 | 15,382 |
Deferred tax liabilities | 4,616 | 11,021 |
Total Liabilities | 1,394,640 | 1,051,081 |
Commitments and contingencies | ||
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; 47,961,467 and 47,525,807 shares issued; and 40,737,111 and 41,370,504 shares outstanding at the respective period ends | 9 | 9 |
Treasury stock, at cost - 7,224,356 and 6,155,303 shares at the respective period ends | (95,544) | (77,852) |
Paid-in capital | 88,408 | 79,812 |
Retained earnings | 236,784 | 160,068 |
Accumulated other comprehensive loss | (32,174) | (30,132) |
Total Stockholders' Equity | 197,483 | 131,905 |
Total Liabilities and Stockholders' Equity | $ 1,592,123 | $ 1,182,986 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Restricted cash | $ 66,168 | $ 54,765 |
Total gross loans receivable | 882,356 | 553,722 |
Less: allowance for losses | 72,543 | 86,162 |
Prepaid expenses and other | 31,558 | 27,994 |
Accounts payable and accrued liabilities | 75,701 | 49,624 |
Accrued interest | $ 11,106 | $ 20,123 |
Preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, 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) | 47,961,467 | 47,525,807 |
Class A common stock, outstanding (in shares) | 40,737,111 | 41,370,504 |
Treasury stock (in shares) | 7,224,356 | 6,155,303 |
Variable Interest Entity | ||
Restricted cash | $ 42,214 | $ 31,994 |
Total gross loans receivable | 700,834 | 360,431 |
Less: allowance for losses | 51,642 | 54,129 |
Prepaid expenses and other | 0 | 388 |
Accounts payable and accrued liabilities | 6,840 | 34,055 |
Accrued interest | 1,418 | 1,147 |
Debt | 407,214 | 147,427 |
Issuance costs | $ 9,749 | $ 7,766 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue | $ 209,280 | $ 182,003 | $ 593,524 | $ 645,318 |
Provision for losses | 70,718 | 54,750 | 152,028 | 218,979 |
Net revenue | 138,562 | 127,253 | 441,496 | 426,339 |
Cost of providing services | ||||
Salaries and benefits | 26,544 | 24,246 | 77,515 | 74,976 |
Occupancy and office | 20,762 | 18,936 | 56,811 | 55,469 |
Other costs of providing services | 7,635 | 6,076 | 21,759 | 23,732 |
Advertising | 9,697 | 14,425 | 24,824 | 32,394 |
Total cost of providing services | 64,638 | 63,683 | 180,909 | 186,571 |
Gross margin | 73,924 | 63,570 | 260,587 | 239,768 |
Operating expense (income) | ||||
Corporate, district and other expenses | 61,745 | 36,658 | 170,206 | 116,246 |
Interest expense | 25,805 | 18,383 | 68,784 | 54,018 |
Loss (income) from equity method investment | 1,582 | (3,530) | (676) | (2,653) |
Gain from equity method investment | 0 | 0 | (135,387) | 0 |
Total operating expense | 89,132 | 51,511 | 102,927 | 167,611 |
Other expense | ||||
Loss on extinguishment of debt | 40,206 | 0 | 40,206 | 0 |
Total other expense | 40,206 | 0 | 40,206 | 0 |
(Loss) income from continuing operations before income taxes | (55,414) | 12,059 | 117,454 | 72,157 |
(Benefit) provision for income taxes | (13,375) | (822) | 29,241 | 2,183 |
Net (loss) income from continuing operations | (42,039) | 12,881 | 88,213 | 69,974 |
Income from discontinued operations, before income tax | 0 | 0 | 0 | 1,714 |
Income tax expense related to disposition | 0 | 0 | 0 | 429 |
Net income from discontinued operations | 0 | 0 | 0 | 1,285 |
Net (loss) income | $ (42,039) | $ 12,881 | $ 88,213 | $ 71,259 |
Basic (loss) earnings per share: | ||||
Continuing operations (in usd per share) | $ (1.02) | $ 0.32 | $ 2.13 | $ 1.71 |
Discontinued operations (in usd per share) | 0 | 0 | 0 | 0.03 |
Basic (loss) earnings per share (in usd per share) | (1.02) | 0.32 | 2.13 | 1.74 |
Diluted (loss) earnings per share: | ||||
Continuing operations (in usd per share) | (1.02) | 0.31 | 2.03 | 1.68 |
Discontinued operations (in usd per share) | 0 | 0 | 0 | 0.03 |
Diluted (loss) earnings per share (in usd per share) | $ (1.02) | $ 0.31 | $ 2.03 | $ 1.71 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 41,220 | 40,885 | 41,459 | 40,838 |
Diluted (in shares) | 41,220 | 41,775 | 43,422 | 41,660 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (42,039) | $ 12,881 | $ 88,213 | $ 71,259 |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustment, net of tax | (10,611) | 5,591 | (2,042) | (6,341) |
Other comprehensive (loss) income | (10,611) | 5,591 | (2,042) | (6,341) |
Comprehensive (loss) income | $ (52,650) | $ 18,472 | $ 86,171 | $ 64,918 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | ||
Cash flows from operating activities | |||
Net income from continuing operations | $ 88,213 | $ 69,974 | |
Adjustments to reconcile net income to net cash provided by continuing operating activities: | |||
Depreciation and amortization | 19,685 | 13,312 | |
Provision for loan losses | 152,028 | 218,979 | |
Amortization of debt issuance costs and bond discount | 4,794 | 2,756 | |
Loss on extinguishment of debt | 40,206 | 0 | |
Deferred income tax (benefit) expense | (10,730) | 14,187 | |
Loss on disposal of property and equipment | 6,816 | 145 | |
Income from equity method investment | (676) | (2,653) | |
Gain from equity method investment | (135,387) | 0 | |
Change in fair value of contingent consideration | 3,825 | 0 | |
Share-based compensation | 10,148 | 9,896 | |
Changes in operating assets and liabilities: | |||
Accrued interest on loans receivable | 19,619 | 26,566 | |
Prepaid expenses and other assets | (2,989) | 7,362 | |
Accounts payable and accrued liabilities | 16,591 | (10,439) | |
Deferred revenue | 10,084 | (4,843) | |
Income taxes receivable | 8,270 | (23,790) | |
Accrued interest | (9,017) | (14,092) | |
Other long-term liabilities | (770) | 2,386 | |
Net cash provided by continuing operating activities | 220,710 | 309,746 | |
Net cash provided by discontinued operating activities | 0 | 1,714 | |
Net cash provided by operating activities | [1] | 220,710 | 311,460 |
Cash flows from investing activities | |||
Purchase of property, equipment and software | (14,924) | (7,401) | |
Loans receivable originated or acquired | (985,603) | (951,803) | |
Loans receivable repaid | 661,456 | 836,915 | |
Proceeds from (Investment in) Katapult | 146,878 | ||
Proceeds from (Investment in) Katapult | (11,187) | ||
Net cash used in continuing investing activities | [1] | (283,396) | (147,894) |
Cash flows from financing activities | |||
Debt issuance costs paid | (15,957) | (6,991) | |
Payments of call premiums from early debt extinguishments | (31,250) | 0 | |
Proceeds from exercise of stock options | 266 | 126 | |
Payments to net settle restricted stock units vesting | (1,818) | (641) | |
Repurchase of common stock | (17,191) | (5,908) | |
Dividends paid to stockholders | (11,497) | (6,750) | |
Net cash provided by (used in) continuing financing activities | [1] | 66,707 | (3,732) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (176) | (257) | |
Net increase in cash, cash equivalents and restricted cash | 3,845 | 159,577 | |
Cash, cash equivalents and restricted cash at beginning of period | 268,108 | 110,021 | |
Cash, cash equivalents and restricted cash at end of period | 271,953 | 269,598 | |
Supplemental Cash Flow Elements [Abstract] | |||
Cash and cash equivalents | 205,785 | 207,071 | |
Restricted cash | 66,168 | 62,527 | |
Total cash, cash equivalents and restricted cash used in the Statement of Cash Flows | 271,953 | 269,598 | |
8.25% Senior Secured Notes | |||
Cash flows from financing activities | |||
Extinguishment of 8.25% Senior Secured Notes | (690,000) | 0 | |
7.50% Senior Secured Notes | |||
Cash flows from financing activities | |||
Proceeds from credit facilities | 750,000 | 0 | |
Revolving Credit Facility | Non-Recourse Canada SPV And SPE Facilities | Line of Credit | |||
Cash flows from financing activities | |||
Proceeds from credit facilities | 93,307 | 58,563 | |
Payments on credit facilities | (9,153) | (42,131) | |
Revolving Credit Facility | Senior Revolver | Line of Credit | |||
Cash flows from financing activities | |||
Proceeds from credit facilities | 20,931 | 69,853 | |
Payments on credit facilities | (20,931) | (69,853) | |
Ad Astra | |||
Cash flows from investing activities | |||
Acquisition, net of cash received | 0 | (14,418) | |
Flexiti | |||
Cash flows from investing activities | |||
Acquisition, net of cash received | $ (91,203) | $ 0 | |
[1] | (1) Investing activities and Financing activities were not impacted by discontinued operations. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Restricted cash | $ 66,168 | $ 54,765 | $ 62,527 |
Variable Interest Entity | |||
Restricted cash | $ 42,214 | $ 31,994 | $ 33,696 |
8.25% Senior Secured Notes | |||
Stated interest rate | 8.25% | ||
7.50% Senior Secured Notes | |||
Stated interest rate | 7.50% |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS Nature of Operations 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 Company is a tech-enabled, omni-channel consumer finance company serving a full spectrum of non-prime consumers in the U.S and non-prime and prime consumers in Canada. Effective with its acquisition of Flexiti on March 10, 2021, CURO provides a BNPL solution for customers in Canada. Basis of Presentation The Company has prepared the accompanying unaudited Condensed Consolidated Financial Statements in accordance with U.S. GAAP and the accounting policies described in its 2020 Form 10-K. Interim results of operations are not necessarily indicative of results that might be expected for future interim periods or for the year ending December 31, 2021. Following the acquisition of Flexiti, the Company reports Flexiti operations as the "Canada POS Lending" segment throughout this Form 10-Q. Refer to Note 11, "Segment Reporting" for further information. While certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted, the Company believes that the disclosures are adequate to enable a reasonable understanding of the information presented. Additionally, the Company will continue to take advantage of the scaled disclosure requirements permitted by the SEC for. SRCs for the quarter-to-date and year-to-date periods presented. SRC status is determined on an annual basis as of the last business day of the most recently completed second fiscal quarter. The Company qualified as an SRC until June 30, 2021, but after that date, the Company no longer qualified as an SRC and thus will begin to report as a non-SRC beginning with the first quarter of 2022. The unaudited Condensed Consolidated Financial Statements and the accompanying notes reflect adjustments of a normal and recurring nature, which are, in the opinion of management, necessary to present fairly the Company's results of operations, financial position and cash flows for the periods presented. During the first quarter of 2021, the Company combined the previously separate "Occupancy" and "Office" line items into "Occupancy and office" in the unaudited Condensed Consolidated Statements of Operations as of September 30, 2021 and 2020. Principles of Consolidation The unaudited Condensed Consolidated Financial Statements reflect the accounts of CURO and its direct and indirect subsidiaries, including Flexiti, which was acquired on March 10, 2021, and Ad Astra, which was acquired on January 3, 2020. Refer to Note 15, "Acquisitions" for further disclosures related to these acquisitions. Intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of the unaudited Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions, including those impacted by COVID-19, that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. Some estimates may also affect the reported amounts of revenues and expenses during the periods presented. Significant estimates that the Company made in the accompanying unaudited Condensed Consolidated Financial Statements include ALL, certain assumptions related to equity investments, goodwill and intangibles, accruals related to self-insurance, CSO liability for losses, estimated tax liabilities and the accounting for the Flexiti acquisition. Actual results may differ from those estimates. Acquisition of Flexiti On March 10, 2021, CURO closed its acquisition of Flexiti, a POS and BNPL provider, in a transaction accounted for as a business combination. Flexiti is one of Canada's fastest-growing POS lenders, offering customers flexible payment plans at retailers that sell large-scale goods such as furniture, appliances, jewelry and electronics. Through its BNPL platform, customers can be approved instantly to shop with their FlexitiCard, which they can use online or in-store to make multiple purchases, within their credit limit, without needing to reapply. Refer to Note 15, "Acquisitions" for further information regarding the acquisition and Note 14, "Goodwill" for the impact to the Company's goodwill balance as a result of the acquisition. Change in Accounting Principle Related to Equity Method Investment in Katapult Katapult is an e-commerce focused, FinTech company offering an innovative lease financing solution to consumers and enabling essential transactions at the merchant POS. CURO first invested in Katapult in 2017 as the Company identified multiple catalysts for Katapult's future success: an innovative e-commerce POS business model, a focus on the large and under-penetrated non-prime financing market and a clear and compelling value proposition for merchants and consumers. The Company accounts for its investment in Katapult under the equity method of accounting as of September 30, 2021. Refer to Note 8, "Fair Value Measurements" for further disclosures regarding the accounting for the Company's investment in Katapult. Historically, the Company reported income and loss from its equity method investment in Katapult on a two-month reporting lag. The merger between Katapult and FinServ in June 2021 triggered a change in Katapult's control environment and reporting structure to coincide with SEC reporting requirements. As a result, during the first quarter of 2021 the Company applied a change in accounting principle to reflect the Company's share of Katapult's historical and ongoing results from a two-month reporting lag to a one-quarter reporting lag. The Company believes this change in accounting principle is preferable as it provides the Company with the ability to present the results of its equity method investment after Katapult’s results are publicly available and related internal controls have been completed. The Company has not retrospectively applied the change in accounting principle because the impact on the financial statements was immaterial for all periods presented. Continuing Impacts of COVID-19 The COVID-19 pandemic continues to cause significant uncertainty and impacts. Macroeconomic conditions, in general, and the Company's operations, specifically, have been significantly affected by COVID-19. Government responses to the pandemic, either through the form of mandated lockdowns or a variety of stimulus programs to mitigate the impact of the pandemic, suppressed loan demand in 2020 and into the first quarter of 2021. For details regarding the effect COVID-19 had on the Company's operations in 2020, the Company's response to mitigate the impact of the pandemic and the U.S. and Canadian federal and local responses to the pandemic, refer to the 2020 Form 10-K. During the second quarter of 2021, the runoff of additional federal stimulus programs in the U.S. resulted in the stabilization of the Company's U.S. loan portfolio and resulted in moderately higher NCO and past-due trends, though still at relatively low levels compared to pre-COVID-19 trends. For further information regarding the impact the pandemic had on loan balances as of September 30, 2021, refer to Note 3, "Loans Receivable and Revenue." Troubled Debt Restructuring If a borrower experiences financial difficulties, the Company may modify the terms of its loans receivable, known as TDRs. As a result of COVID-19 and the Company's response to provide relief for customers through its Customer Care Program, the Company began modifying loans that qualified as TDRs beginning in the second quarter of 2020. Refer to Note 3, "Loans Receivable and Revenue" for further information on TDRs as of and for the three and nine months ended September 30, 2021. Loans Receivable on a Non-Accrual Basis The Company may place loans receivable on non-accrual status due to statutory requirements or, if in management’s judgment, the timely collection of principal and interest becomes uncertain. After a loan is placed on non-accrual status, no further interest is accrued. Loans are not typically returned to accrual status and thus remain on non-accrual status until they are paid or charged-off. Payments are applied initially to any outstanding past due loan balances prior to current loan balances. The Company's policy for determining past due status is consistent with that of the Company's accrual loans, depending on the product. Refer to Note 3, "Loans Receivable and Revenue" for further information on non-accrual loans for the three and nine months ended September 30, 2021. 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 its 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. At September 30, 2021, the goodwill balance includes the amount recognized as a result of the acquisition of Flexiti. Refer to Note 15, "Acquisitions" for further information regarding the acquisition and Note 14, "Goodwill" for the impact to the Company's goodwill balance as a result of the acquisition. During the fourth quarter of 2020, the Company performed a quantitative assessment for the U.S. and Canada Direct Lending reporting units. Management concluded that the estimated fair values of these two reporting units were greater than their respective carrying values. During the three and nine months ended September 30, 2021, the Company did not identify triggering events that indicate an impairment existed and did not record an impairment related to goodwill. The Company has not yet completed its annual impairment review for goodwill, which is performed as of October 1. Refer to Note 14, "Goodwill" for further information. Recently Adopted Accounting Pronouncements ASU 2020-01 In January 2020, the FASB issued ASU 2020-01, Investments - Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) (ASU 2020-01). ASU 2020-01 clarifies the interaction of the accounting for equity securities under Topic 321, the accounting for equity method investments in Topic 323 and the accounting for certain forward contracts and purchased options in Topic 815. The Company adopted ASU 2020-01 as of January 1, 2021, which did not have a material impact on the unaudited Condensed 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 Topic 740. Additionally, the ASU clarifies and amends existing guidance to improve consistent application of its requirements. The Company adopted ASU 2019-12 as of January 1, 2021, which did not have a material impact on the Company's unaudited Condensed Consolidated Financial Statements. Recently Issued Accounting Pronouncements Not Yet Adopted 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, ASU 2019-10 and -11 in November 2019 and ASU 2020-02 in February 2020. The amended standard 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. 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 2019-10 amends the mandatory effective date for ASU 2016-13. As a result, ASU 2016-13 and related amendments are effective for fiscal years beginning after December 15, 2022 for entities that qualified as an SRC as of June 30, 2019, such as the Company. ASU 2016-13 and its amendments should be applied on either a prospective transition or modified-retrospective approach depending on the subtopic. Early adoption is permitted. 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 deferred the adoption of ASU 2016-13 as permitted under ASU 2019-10. The Company is currently assessing the impact that adoption of ASU 2016-13 will have on its financial statements. ASU 2020-04 and subsequent amendments In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides temporary optional expedients and exceptions to U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the upcoming market transition from LIBOR and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate. Entities can elect not to apply certain modification accounting requirements to contracts affected by this reference rate reform, if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. Entities also can elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform if certain criteria are met. The guidance is effective upon issuance and generally can be applied through December 31, 2022. The FASB also issued ASU 2021-01, Reference Rate Reform (Topic 848) : Scope in January 2021. It clarifies that certain optional expedients and exceptions in Topic 848 apply to derivatives that are affected by the discounting transition. The amendments in this ASU affect the guidance in ASU 2020-04 and are effective in the same timeframe as ASU 2020-04. The Company does not expect the adoption of these ASUs to have a material impact on its financial statements. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES As of September 30, 2021, the Company had three credit facilities whereby certain loans receivable were sold to VIEs to collateralize debt incurred under each facility. See Note 5, "Debt" for additional details on the Non-Recourse U.S. SPV Facility, entered into in April 2020, the Non-Recourse Canada SPV Facility, entered into in August 2018, and the Non-Recourse Flexiti SPE Facility, entered into concurrent with the Company's acquisition of Flexiti in March 2021. The Company has determined that it is the primary beneficiary of the VIEs and is required to consolidate them. The Company includes the assets and liabilities related to the VIEs in the unaudited Condensed Consolidated Financial Statements. The carrying amounts of consolidated VIEs' assets and liabilities were as follows (in thousands): September 30, December 31, Assets Restricted cash $ 42,214 $ 31,994 Loans receivable, net 649,192 306,302 Intercompany receivable (1) 84,811 15,382 Prepaid expenses and other — 388 Deferred tax assets 105 105 Total Assets $ 776,322 $ 354,171 Liabilities Accounts payable and accrued liabilities $ 6,840 $ 34,055 Deferred revenue 110 136 Accrued interest 1,418 1,147 Debt 397,465 139,661 Total Liabilities $ 405,833 $ 174,999 (1) Intercompany receivable VIE balances eliminate upon consolidation. |
LOANS RECEIVABLE AND REVENUE
LOANS RECEIVABLE AND REVENUE | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
LOANS RECEIVABLE AND REVENUE | LOANS RECEIVABLE AND REVENUERevolving LOC revenues include interest income on outstanding revolving balances, MDR related to Canada POS Lending and other usage or maintenance fees as permitted by underlying statutes. 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, known as late fees. Late fees comprise less than 1% of Installment revenues. Single-Pay revenues represent deferred presentment or other fees as defined by the underlying state, provincial or national regulations. Ancillary revenue includes revenue from a number of ancillary financial products such as check cashing, proprietary general-purpose reloadable prepaid debit cards (Opt+), demand deposit accounts (Revolve Finance), credit protection insurance in the Canadian market, retail installment sales and money transfer services. The following table summarizes revenue by product (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Revolving LOC $ 78,262 $ 58,711 $ 209,033 $ 186,429 Unsecured Installment 72,056 67,408 213,233 260,328 Secured Installment 13,743 16,692 41,591 62,379 Single-Pay 26,568 25,084 75,298 92,973 Total Installment 112,367 109,184 330,122 415,680 Ancillary 18,651 14,108 54,369 43,209 Total revenue (1) $ 209,280 $ 182,003 $ 593,524 $ 645,318 (1) Includes revenue from CSO programs of $43.4 million and $36.7 million for the three months ended September 30, 2021 and 2020, respectively, and $119.7 million and $142.5 million for the nine months ended September 30, 2021 and 2020. The following tables summarize loans receivable by product and the related delinquent loans receivable (in thousands): September 30, 2021 Revolving LOC Unsecured Installment Secured Installment Single-Pay (1) Total Installment - Company Owned Total Current loans receivable $ 665,130 $ 61,852 $ 31,911 $ 40,331 $ 134,094 $ 799,224 Delinquent loans receivable 54,924 20,953 7,255 — 28,208 83,132 Total loans receivable 720,054 82,805 39,166 40,331 162,302 882,356 Less: allowance for losses (52,262) (14,330) (3,482) (2,469) (20,281) (72,543) Loans receivable, net $ 667,792 $ 68,475 $ 35,684 $ 37,862 $ 142,021 $ 809,813 (1) Of the $40.3 million of Single-Pay receivables, $11.1 million relate to mandated extended payment options for certain Canada Single-Pay loans. September 30, 2021 Revolving LOC Unsecured Installment Secured Installment Total Installment - Company Owned Total Delinquent loans receivable 0-30 days past due $ 27,449 $ 7,933 $ 3,667 $ 11,600 $ 39,049 31-60 days past due 12,721 5,914 1,876 7,790 20,511 61 + days past due 14,754 7,106 1,712 8,818 23,572 Total delinquent loans receivable $ 54,924 $ 20,953 $ 7,255 $ 28,208 $ 83,132 December 31, 2020 Revolving LOC Unsecured Installment Secured Installment Single-Pay (1) Total Installment - Company Owned Total Current loans receivable $ 321,105 $ 78,235 $ 40,358 $ 43,780 $ 162,373 $ 483,478 Delinquent loans receivable 37,779 24,190 8,275 — 32,465 70,244 Total loans receivable 358,884 102,425 48,633 43,780 194,838 553,722 Less: allowance for losses (51,958) (24,073) (7,047) (3,084) (34,204) (86,162) Loans receivable, net $ 306,926 $ 78,352 $ 41,586 $ 40,696 $ 160,634 $ 467,560 (1) Of the $43.8 million of Single-Pay receivables, $11.2 million relate to mandated extended payment options for certain Canada Single-Pay loans. December 31, 2020 Revolving LOC Unsecured Installment Secured Installment Total Installment - Company Owned Total Delinquent loans receivable 0-30 days past due $ 17,517 $ 10,361 $ 3,764 $ 14,125 $ 31,642 31-60 days past due 9,276 7,124 2,199 9,323 18,599 61 + days past due 10,986 6,705 2,312 9,017 20,003 Total delinquent loans receivable $ 37,779 $ 24,190 $ 8,275 $ 32,465 $ 70,244 The following tables summarize loans Guaranteed by the Company under CSO programs and the related delinquent receivables (in thousands): September 30, 2021 Unsecured Installment Secured Installment Total Installment - Guaranteed by the Company Current loans receivable Guaranteed by the Company $ 34,090 $ 740 $ 34,830 Delinquent loans receivable Guaranteed by the Company 8,385 207 8,592 Total loans receivable Guaranteed by the Company 42,475 947 43,422 Less: Liability for losses on CSO lender-owned consumer loans (6,973) (34) (7,007) Loans receivable Guaranteed by the Company, net $ 35,502 $ 913 $ 36,415 September 30, 2021 Unsecured Installment Secured Installment Total Installment - Guaranteed by the Company Delinquent loans receivable 0-30 days past due $ 6,798 $ 166 $ 6,964 31-60 days past due 1,247 35 1,282 61+ days past due 340 6 346 Total delinquent loans receivable $ 8,385 $ 207 $ 8,592 December 31, 2020 Unsecured Installment Secured Installment Total Installment - Guaranteed by the Company Current loans receivable Guaranteed by the Company $ 37,096 $ 775 $ 37,871 Delinquent loans receivable Guaranteed by the Company 6,079 155 6,234 Total loans receivable Guaranteed by the Company 43,175 930 44,105 Less: Liability for losses on CSO lender-owned consumer loans (7,160) (68) (7,228) Loans receivable Guaranteed by the Company, net $ 36,015 $ 862 $ 36,877 December 31, 2020 Unsecured Installment Secured Installment Total Installment - Guaranteed by the Company Delinquent loans receivable 0-30 days past due $ 5,435 $ 103 $ 5,538 31-60 days past due 490 37 527 61 + days past due 154 15 169 Total delinquent loans receivable $ 6,079 $ 155 $ 6,234 The following tables summarize activity in the ALL and the liability for losses on CSO lender-owned consumer loans in total (in thousands): Three Months Ended Revolving LOC Unsecured Installment Secured Installment Single-Pay Total Installment Other Total Allowance for loan losses: Balance, beginning of period $ 44,847 $ 16,701 $ 3,880 $ 2,432 $ 23,013 $ — $ 67,860 Charge-offs (27,974) (18,400) (4,252) (24,640) (47,292) (869) (76,135) Recoveries 8,564 4,811 1,996 18,493 25,300 401 34,265 Net charge-offs (19,410) (13,589) (2,256) (6,147) (21,992) (468) (41,870) Provision for losses 27,800 11,223 1,858 6,223 19,304 468 47,572 Effect of foreign currency translation (975) (5) — (39) (44) — (1,019) Balance, end of period $ 52,262 $ 14,330 $ 3,482 $ 2,469 $ 20,281 $ — $ 72,543 Liability for losses on CSO lender-owned consumer loans: Balance, beginning of period $ — $ 5,234 $ 31 $ — $ 5,265 $ — $ 5,265 Increase in liability — 1,739 3 — 1,742 — 1,742 Balance, end of period $ — $ 6,973 $ 34 $ — $ 7,007 $ — $ 7,007 Three Months Ended Revolving LOC Unsecured Installment Secured Installment Single-Pay Total Installment Other Total Allowance for loan losses: Balance, beginning of period $ 47,319 $ 18,798 $ 7,883 $ 2,802 $ 29,483 $ — $ 76,802 Charge-offs (22,781) (14,781) (6,648) (21,473) (42,902) (972) (66,655) Recoveries 4,618 5,186 2,635 17,034 24,855 498 29,971 Net charge-offs (18,163) (9,595) (4,013) (4,439) (18,047) (474) (36,684) Provision for losses 21,655 9,647 3,239 4,799 17,685 474 39,814 Effect of foreign currency translation 606 9 — 35 44 — 650 Balance, end of period $ 51,417 $ 18,859 $ 7,109 $ 3,197 $ 29,165 $ — $ 80,582 Liability for losses on CSO lender-owned consumer loans: Balance, beginning of period $ — $ 5,128 $ 36 $ — $ 5,164 $ — $ 5,164 Increase in liability — 1,002 32 — 1,034 — 1,034 Balance, end of period $ — $ 6,130 $ 68 $ — $ 6,198 $ — $ 6,198 Nine Months Ended Revolving LOC Unsecured Installment Secured Installment Single-Pay Total Installment Other Total Allowance for loan losses: Balance, beginning of period $ 51,958 $ 24,073 $ 7,047 $ 3,084 $ 34,204 $ — $ 86,162 Charge-offs (81,175) (58,337) (14,979) (68,680) (141,996) (2,525) (225,696) Recoveries 23,351 16,811 6,756 57,321 80,888 1,331 105,570 Net charge-offs (57,824) (41,526) (8,223) (11,359) (61,108) (1,194) (120,126) Provision for losses 58,274 31,782 4,658 10,743 47,183 1,194 106,651 Effect of foreign currency translation (146) 1 — 1 2 — (144) Balance, end of period $ 52,262 $ 14,330 $ 3,482 $ 2,469 $ 20,281 $ — $ 72,543 Liability for losses on CSO lender-owned consumer loans: Balance, beginning of period $ — $ 7,160 $ 68 $ — $ 7,228 $ — $ 7,228 Decrease in liability — (187) (34) — (221) — (221) Balance, end of period $ — $ 6,973 $ 34 $ — $ 7,007 $ — $ 7,007 Nine Months Ended Revolving LOC Unsecured Installment Secured Installment Single-Pay Total Installment Other Total Allowance for loan losses: Balance, beginning of period $ 55,074 $ 35,587 $ 10,305 $ 5,869 $ 51,761 $ — $ 106,835 Charge-offs (104,074) (83,468) (31,505) (83,162) (198,135) (3,000) (305,209) Recoveries 17,129 17,982 8,505 68,804 95,291 1,475 113,895 Net charge-offs (86,945) (65,486) (23,000) (14,358) (102,844) (1,525) (191,314) Provision for losses 83,987 48,766 19,804 11,850 80,420 1,525 165,932 Effect of foreign currency translation (699) (8) — (164) (172) — (871) Balance, end of period $ 51,417 $ 18,859 $ 7,109 $ 3,197 $ 29,165 $ — $ 80,582 Liability for losses on CSO lender-owned consumer loans: Balance, beginning of period $ — $ 10,553 $ 70 $ — $ 10,623 $ — $ 10,623 Decrease in liability — (4,423) (2) — (4,425) — (4,425) Balance, end of period $ — $ 6,130 $ 68 $ — $ 6,198 $ — $ 6,198 As of September 30, 2021, Revolving LOC and Installment loans classified as nonaccrual were $5.1 million and $6.1 million, respectively. As of December 31, 2020, Revolving LOC and Installment loans classified as nonaccrual were $4.4 million and $6.2 million, respectively. The Company's loans receivable inherently considers nonaccrual loans in its estimate of the ALL as delinquencies are a primary input into the Company's roll rate-based model. TDR Loans Receivable In certain circumstances, the Company modifies the terms of its loans receivable for borrowers. Under U.S. GAAP, a modification of loans receivable terms is considered a TDR if the borrower is experiencing financial difficulty and the Company grants a concession to the borrower it would not have otherwise granted under the terms of the original agreement. In response to COVID-19 in 2020, the Company established an enhanced Customer Care Program, which enables its team members to provide relief to customers in various ways, ranging from due date changes, interest or fee forgiveness, payment waivers or extended payment plans, depending on a customer’s individual circumstances. The Company modifies loans only if it believes the customer has the ability to pay under the restructured terms. The Company continues to accrue and collect interest on these loans in accordance with the restructured terms. The Company records its ALL related to TDRs by discounting the estimated cash flows associated with the respective TDR at the effective interest rate immediately after the loan modification and records any difference between the discounted cash flows and the carrying value as an allowance adjustment. A loan that has been classified as a TDR remains so classified until the loan is paid off or charged off. A TDR is charged off consistent with the Company's policies for the related loan product. For additional information on the Company's loss recognition policy, see the 2020 Form 10-K. The table below presents TDRs that are related to the Customer Care Program implemented in response to COVID-19, included in both gross loans receivable and the impairment included in the ALL (in thousands): As of September 30, 2021 As of Current TDR gross receivables $ 11,754 $ 13,563 Delinquent TDR gross receivables 4,196 6,309 Total TDR gross receivables 15,950 19,872 Less: Impairment included in the allowance for loan losses (2,829) (3,482) Less: Additional allowance (2,536) (4,497) Outstanding TDR receivables, net of impairment $ 10,585 $ 11,893 The tables below present loans modified and classified as TDRs during the periods presented (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Pre-modification TDR loans receivable $ 3,586 $ 9,007 $ 11,953 $ 37,948 Post-modification TDR loans receivable 3,182 8,186 10,654 34,195 Total concessions included in gross charge-offs $ 404 $ 821 $ 1,299 $ 3,753 There were $2.9 million and $5.1 million of loans classified as TDRs that were charged off and included as a reduction in the ALL during the three months ended September 30, 2021 and 2020, respectively, and $11.0 million and $6.0 million during the nine months ended September 30, 2021 and 2020, respectively. The Company had commitments to lend additional funds of approximately $2.1 million to customers with available and unfunded Revolving LOC loans classified as TDRs as of September 30, 2021. The table below presents the Company's average outstanding TDR loans receivable, interest income recognized on TDR loans and number of TDR loans for the periods presented (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Average outstanding TDR loans receivable $ 16,190 $ 20,484 $ 17,911 $ 21,011 Interest income recognized 4,155 6,510 14,277 10,907 Number of TDR loans 2,624 5,361 8,872 22,190 |
CREDIT SERVICES ORGANIZATION
CREDIT SERVICES ORGANIZATION | 9 Months Ended |
Sep. 30, 2021 | |
Guarantees [Abstract] | |
CREDIT SERVICES ORGANIZATION | CREDIT SERVICES ORGANIZATION The CSO fee receivables were $5.2 million and $5.0 million at September 30, 2021 and December 31, 2020, respectively, and are reflected in "Prepaid expenses and other" in the unaudited Condensed Consolidated Balance Sheets. The Company bears the risk of loss through its guarantee to purchase customer loans that are charged-off. The terms of these loans range up to six months. See Note 1, "Summary of Significant Accounting Policies and Nature of Operations" of the 2020 Form 10-K for further details of the Company's accounting policy. As of September 30, 2021 and December 31, 2020, the incremental maximum amount payable under all such guarantees was $35.3 million and $36.6 million, respectively. This liability is not included in the Company's unaudited Condensed Consolidated Balance Sheets. If the Company is required to pay any portion of the total amount of the loans it has guaranteed, it will attempt to recover the entire amount or a portion 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, which was $7.0 million and $7.2 million at September 30, 2021 and December 31, 2020, respectively. This liability is reflected in "Liability for losses on CSO lender-owned consumer loans" in the unaudited Condensed Consolidated Balance Sheets. Deferred revenue associated with the CSO program was immaterial as of September 30, 2021 and December 31, 2020, and there were no costs to obtain, or costs to fulfill, capitalized under the program. See Note 3, "Loans Receivable and Revenue" |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Debt consisted of the following (in thousands): September 30, 2021 December 31, 2020 7.50% Senior Secured Notes $ 734,533 $ — 8.25% Senior Secured Notes — 680,000 Non-Recourse U.S. SPV Facility 44,940 43,586 Non-Recourse Canada SPV Facility 96,821 96,075 Non-Recourse Flexiti SPE Facility 255,704 — Debt $ 1,131,998 $ 819,661 7.50% Senior Secured Notes In July 2021, the Company issued $750.0 million of 7.50% Senior Secured Notes which mature on August 1, 2028. Interest on the notes is payable semiannually, in arrears, on February 1 and August 1. In connection with the 7.50% Senior Secured Notes, financing costs of $15.5 million were capitalized, net of amortization, and included in the unaudited Condensed Consolidated Balance Sheets as a component of "Debt." These costs are amortized over the term of the 7.50% Senior Secured Notes as a component of interest expense. 8.25% Senior Secured Notes In August 2018, the Company issued $690.0 million of 8.25% Senior Secured Notes maturing on September 1, 2025. In connection with the 8.25% Senior Secured Notes, the Company capitalized financing costs of $13.9 million, which were being amortized over the term of the 8.25% Senior Secured Notes as a component of interest expense. During the third quarter of 2021, the 8.25% Senior Secured Notes were extinguished using proceeds from the 7.50% Senior Secured Notes described above. The early extinguishment of the 8.25% Senior Secured Notes resulted in a loss of $40.2 million. Non-Recourse U.S. SPV Facility In April 2020, CURO Receivables Finance II, LLC, a wholly-owned subsidiary of the Company, entered into the Non-Recourse U.S. SPV Facility with Midtown Madison Management LLC, as administrative agent, and Atalaya Asset Income Fund VI LP, as the initial lender. As of September 30, 2021, the Non-Recourse U.S. SPV Facility provided for $200.0 million of borrowing capacity. As of September 30, 2021, the effective interest rate on the Company's borrowings was one-month LIBOR plus 6.25%. The borrower pays the lenders a monthly commitment fee at an annual rate of 0.50% on the unused portion of the commitments. The Company is currently evaluating the impact of the upcoming transition from LIBOR to an alternative reference rate. As of September 30, 2021, outstanding borrowings under the Non-Recourse U.S. SPV Facility were $44.9 million, net of deferred financing costs of $4.5 million. For further information on the Non-Recourse U.S. SPV Facility, refer to Note 2, "Variable Interest Entities." The Non-Recourse U.S. SPV Facility matures on April 8, 2024. Non-Recourse Canada SPV Facility In August 2018, CURO Canada Receivables Limited Partnership, a wholly-owned subsidiary of the Company, entered into the Non-Recourse Canada SPV Facility with Waterfall Asset Management, LLC. The Non-Recourse Canada SPV Facility currently provides for C$175.0 million of borrowing capacity and the ability to expand such capacity up to C$250.0 million. As of September 30, 2021, the effective interest rate was three-month CDOR plus 6.75%. The borrower also pays a 0.50% per annum commitment fee on the unused portion of the commitments. The Non-Recourse Canada SPV Facility matures on September 2, 2023. As of September 30, 2021, outstanding borrowings under the Non-Recourse Canada SPV Facility were $96.8 million, net of deferred financing costs of $1.0 million. For further information on the Non-Recourse Canada SPV Facility, refer to Note 2, "Variable Interest Entities." Non-Recourse Flexiti SPE Facility In March 2021, concurrently with the acquisition of Flexiti, Flexiti Financing SPE Corp., a wholly-owned Canadian subsidiary of the Company, refinanced and increased its Non-Recourse Flexiti SPE Facility to C$500.0 million, with a maturity on March 10, 2024. As of September 30, 2021, the effective interest rate was three-month CDOR plus 4.40%. The borrower also pays a 0.50% to 1.00% per annum commitment fee on the unused portion of the commitments. As of September 30, 2021, outstanding borrowings under the Non-Recourse Flexiti SPE Facility were $255.7 million, net of deferred financing costs of $4.2 million. For further information on the Non-Recourse Flexiti SPE Facility, refer to Note 2, "Variable Interest Entities." Senior Revolver The Company maintains the Senior Revolver that provides $50.0 million of borrowing capacity, 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, 2022. The Senior Revolver accrues interest at one-month LIBOR plus 5.00%. The Senior Revolver is syndicated among four banks. The Company is currently evaluating the impact of the upcoming transition from LIBOR to an alternative reference rate. The Senior Revolver is guaranteed by all subsidiaries that guarantee the 7.50% Senior Secured Notes, and is secured by a lien on substantially all assets of CURO and the guarantor subsidiaries that are senior to the lien securing the 7.50% Senior Secured Notes. The revolver was undrawn at September 30, 2021 and December 31, 2020. Cash Money Revolving Credit Facility CURO Canada maintains the Cash Money Revolving Credit Facility, a C$10.0 million revolving credit facility with Royal Bank of Canada, which provides short-term liquidity for the Company's Canadian direct lending operations. As of September 30, 2021, the borrowing capacity under the Cash Money Revolving Credit Facility 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 CURO Canada’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 September 30, 2021 and December 31, 2020. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATIONThe Company's 2017 Incentive Plan provides for the issuance of up to 5 million shares, subject to certain adjustments, which may be issued in the form of stock options, restricted stock awards, RSUs, stock appreciation rights, performance awards or other awards. Grants issued to date under the plan 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, or are canceled, forfeited, settled in cash or otherwise terminated. RSUs As of September 30, 2021, the Company has granted three types of RSUs: time-based, market-based and, in connection with the Flexiti acquisition, performance-based. Grants of time-based RSUs are valued at the grant date based on the closing market price of the Company's common stock and are expensed using the straight-line method over the service period. Time-based RSUs typically vest over a three-year period. Grants of market-based RSUs are valued using the Monte Carlo simulation pricing model. The market-based RSUs granted to date 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 market-based RSUs occurs over the service period using the straight-line method. Upon closing of the Flexiti acquisition in March 2021, the Company granted performance-based RSUs to certain Flexiti employees. Grants of performance-based RSUs are valued at the grant date based on the closing market price of the Company's common stock. The performance-based RSUs vest over two years if Flexiti achieves specified internal targets, including revenue less NCOs and loan originations metrics. Expense recognition for performance-based RSUs occurs ratably over the service period if it is probable that the targets will be achieved as of each period end. If such results are not probable, no share-based compensation expense is recognized and any previously recognized share-based compensation expense is reversed. Unvested shares of RSUs generally are forfeited upon termination of employment, or failure to achieve the required performance condition, if applicable. A summary of the activity of time-based, market-based and performance-based unvested RSUs as of September 30, 2021 and changes during the nine months ended September 30, 2021 is presented in the following table: Number of RSUs Time-Based Market-Based Performance-Based Weighted Average December 31, 2020 1,012,792 758,713 — $ 10.26 Granted 1,089,372 299,053 253,310 15.34 Vested (489,858) — — 11.06 Forfeited (58,610) (51,032) — 11.22 September 30, 2021 1,553,696 1,006,734 253,310 $ 13.05 Share-based compensation expense for the three months ended September 30, 2021 and 2020, which includes compensation costs from stock options and RSUs, was $4.0 million and $3.4 million, respectively, and during the nine months ended September 30, 2021 and 2020 was $10.1 million and $9.9 million, respectively. Share-based compensation expense is included in the unaudited Condensed Consolidated Statements of Operations as a component of "Corporate, district and other expenses." |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company's effective income tax rate was 24.9% and 3.0% for the nine months ended September 30, 2021 and 2020, respectively. The effective income tax rate for the nine months ended September 30, 2021, was lower compared to the blended federal and state/provincial statutory rate of approximately 26%, primarily as a result of proportionally more net income in lower-tax rate jurisdictions, driven by the $146.9 million gain on the Katapult merger in the second quarter of 2021 and the $40.2 million loss on extinguishment of debt in the third quarter of 2021. Additionally, the effective tax rate also includes (i) the release of a valuation allowance of $0.4 million due to the Company's share of Katapult's income, (ii) tax benefits related to share-based compensation of $0.2 million, (iii) $1.3 million of tax expense related to the non-deductible transaction costs and the change in fair value of contingent consideration, (iv) $0.3 million tax expense of additional Texas accrual for 2020 due to the settlement of 2013 to 2019 Texas returns and (v) a tax benefit of $0.9 million for the recognition of the research and development tax credit. The lower effective income tax rate for the nine months ended September 30, 2020 was primarily due to a tax benefit from the CARES Act. The CARES Act, among other things, allows NOLs incurred in 2018, 2019 and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid Federal income taxes. The Company recorded an income tax |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2021 | |
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 judgment about the assumptions market participants would use in pricing the asset or liability based on the best information available for the specific 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 as a result of limited market data. 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 unaudited Condensed Consolidated Balance Sheets at September 30, 2021 (in thousands): Estimated Fair Value Carrying Value September 30, Level 1 Level 2 Level 3 Total Financial assets: Cash Surrender Value of Life Insurance $ 7,994 $ 7,994 $ — $ — $ 7,994 Financial liabilities: Non-qualified deferred compensation plan $ 4,945 $ 4,945 $ — $ — $ 4,945 Contingent consideration related to acquisition 24,129 — — 24,129 24,129 Contingent consideration related to acquisition In connection with the acquisition of Flexiti during the first quarter of 2021, the Company recorded a liability for contingent consideration based on the achievement of revenue less NCOs and loan origination targets over the two years following closing of the acquisition that could result in additional cash consideration up to $32.8 million to Flexiti's former stockholders. The fair value of the liability is estimated using the option-based income approach using a Monte Carlo simulation model discounted back to the reporting date. The significant unobservable inputs (Level 3) used to estimate the fair value included the expected future tax benefits associated with the acquisition, the probability that the risk adjusted-revenue and origination targets will be achieved and discount rates. The contingent consideration measured at fair value using unobservable inputs increased from the initial measurement of $20.6 million as of March 31, 2021 to $24.1 million as of September 30, 2021. For additional information on Flexiti and the related contingent consideration, refer to Note 15, "Acquisitions." The table below presents the assets and liabilities that were carried at fair value on the unaudited Condensed Consolidated Balance Sheets at December 31, 2020 (in thousands): Estimated Fair Value Carrying Value December 31, Level 1 Level 2 Level 3 Total Financial assets: Cash Surrender Value of Life Insurance $ 7,140 $ 7,140 $ — $ — $ 7,140 Financial liabilities: Non-qualified deferred compensation plan $ 4,690 $ 4,690 $ — $ — $ 4,690 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 unaudited Condensed Consolidated Balance Sheets at September 30, 2021 (in thousands): Estimated Fair Value Carrying Value September 30, Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 205,785 $ 205,785 $ — $ — $ 205,785 Restricted cash 66,168 66,168 — — 66,168 Loans receivable, net 809,813 — — 809,813 809,813 Financial liabilities: Liability for losses on CSO lender-owned consumer loans $ 7,007 $ — $ — $ 7,007 $ 7,007 7.50% Senior Secured Notes 734,533 — 757,650 — 757,650 Non-Recourse U.S. SPV facility 44,940 — — 49,456 49,456 Non-Recourse Canada SPV facility 96,821 — — 97,818 97,818 Non-Recourse Flexiti SPE facility 255,704 — — 259,940 259,940 The table below presents the assets and liabilities that were not carried at fair value on the unaudited Condensed Consolidated Balance Sheets at December 31, 2020 (in thousands): Estimated Fair Value Carrying Value December 31, Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 213,343 $ 213,343 $ — $ — $ 213,343 Restricted cash 54,765 54,765 — — 54,765 Loans receivable, net 467,560 — — 467,560 467,560 Financial liabilities: Liability for losses on CSO lender-owned consumer loans $ 7,228 $ — $ — $ 7,228 $ 7,228 8.25% Senior Secured Notes 680,000 — 646,000 — 646,000 Non-Recourse U.S. SPV facility 43,586 — — 49,456 49,456 Non-Recourse Canada SPV facility 96,075 — — 97,971 97,971 Loans Receivable, Net Loans receivable are carried on the unaudited Condensed Consolidated Balance Sheets net of the ALL. 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 3, "Loans Receivable and Revenue" for additional information. Loans receivable acquired as part of the Flexiti acquisition, which represent $82.3 million of the $809.8 million, are carried at gross contractual balance less unamortized fair value discount and ALL. For additional information on the determination of the fair value discount, refer to Note 15, "Acquisitions." CSO Program In connection with CSO programs, 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 charged-off loans that it has guaranteed. Refer to Note 3, "Loans Receivable and Revenue" and Note 4, Credit Services Organization" for additional information. 7.50% Senior Secured Notes, 8.25% Senior Secured Notes, Non-Recourse U.S. Facility, Non-Recourse Canada SPV Facility and Non-Recourse Flexiti SPE Facility The fair value disclosure for the 7.50% Senior Secured Notes as of September 30, 2021 and 8.25% Senior Secured Notes as of December 31, 2020 were based on observable market trading data. The fair values of the Non-Recourse U.S. SPV Facility, Non-Recourse Canada SPV Facility and Non-Recourse Flexiti SPE Facility were based on the cash needed for their respective final settlements. Investment in Katapult The table below presents the Company's investment in Katapult (in thousands): Equity Method Investment Measurement Alternative (1) Total Investment in Katapult Balance at December 31, 2019 $ 10,068 $ — $ 10,068 Equity method (loss) - Q1 2020 (1,618) — (1,618) Balance at March 31, 2020 8,450 — 8,450 Equity method income - Q2 2020 741 741 Balance at June 30, 2020 9,191 — 9,191 Equity method income - Q3 2020 3,530 — 3,530 Accounting policy change for certain securities from equity method investment to measurement alternative (12,452) 12,452 — Purchases of common stock warrants and preferred shares 4,030 7,157 11,187 Balance at September 30, 2020 4,299 19,609 23,908 Equity method income - Q4 2020 1,893 — 1,893 Purchases of common stock 1,570 — 1,570 Balance at December 31, 2020 7,762 19,609 27,371 Equity method income - Q1 2021 546 — 546 Balance at March 31, 2021 8,308 19,609 27,917 Equity method income - Q2 2021 1,712 — 1,712 Conversion of investment (2) 6,481 (19,609) (13,128) Balance at June 30, 2021 16,501 — 16,501 Equity method loss - Q3 2021 (1,582) $ — (1,582) Balance at September 30, 2021 $ 14,919 $ — $ 14,919 Classification as of December 31, 2020 Level 3, not carried at fair value Level 3, carried at measurement alternative Classification as of September 30, 2021 Level 3, not carried at fair value N/A (1) The Company elected to measure this equity security without a readily determinable fair value equal to its cost minus impairment. If the Company identifies an observable price change in orderly transactions for same or similar investment in Katapult, it will measure the equity security at fair value as of the date that the observable transaction occurred. (2) On June 9, 2021, Katapult completed its merger with FinServ. Immediately prior to the merger, the Company first converted all of its preferred stock and exercised all common stock warrants, and then exchanged all shares of Katapult common stock for $146.9 million in cash and 18.9 million shares of common stock in the resulting public company, Katapult (NASDAQ: KPLT). The Company's entire investment in Katapult is now accounted for under the equity method of accounting. The Company recorded a related net gain of $135.4 million on its equity method investment in Katapult, based on the pro rata cost basis of the investment and the discharge of the guarantee provided during the second quarter of 2021. Prior to September 2020, the Company owned 42.5% of the outstanding shares (excluding unexercised options) of Katapult, comprised of multiple classes of equity, including preferred stock and certain common stock warrants, which met the accounting criteria for in-substance common stock at the time of their acquisition. This financial asset was not carried at fair value. The Company accounted for this investment under the equity method, and recognized a proportionate share of Katapult’s income or loss on a two-month lag. In September 2020, the Company acquired common stock warrants and preferred shares of Katapult from existing shareholders for $11.2 million in cash. This transaction resulted in the reevaluation of the accounting for all of the Company’s holdings in Katapult. The Company determined that its holdings of certain common stock warrants qualified as in-substance common stock and were required to be accounted for using the equity method. The Company’s holdings in preferred stock and certain other common stock warrants did not meet the criteria for in-substance common stock and therefore were carried at cost minus impairment under the measurement alternative. As a result, the Company (i) reclassified $12.5 million from an equity method investment to cost minus impairment under the measurement alternative, (ii) recorded a purchase of common stock warrants for $4.0 million determined to be in-substance common stock within its equity method investment and (iii) recorded a purchase of preferred stock for $7.2 million that was accounted for under the measurement alternative. In October and November 2020, the Company acquired common stock of Katapult from existing shareholders for an aggregate $1.6 million. The Company recorded this purchase within its equity method investment. During the first quarter of 2021, the Company changed the two-month reporting lag to a one-quarter reporting lag, as discussed in Note 1, "Summary of Significant Accounting Policies and Nature of Operations." The Company recorded a loss of $1.6 million for the three months ended September 30, 2021 and income of $0.7 million for the nine months ended September 30, 2021, based on its share of Katapult’s earnings for the respective periods. On June 9, 2021, Katapult completed its merger with FinServ. As a result, the Company received $146.9 million in cash and 18.9 million shares of common stock of the resulting public company, Katapult (NASDAQ: KPLT), which are subject to a six-month trading restriction. The Company recorded a related net gain of $135.4 million on its equity method investment in Katapult during the second quarter of 2021. Additionally, as part of the merger, CURO received 3.0 million earn-out warrants and holds two of the seven board of director seats for Katapult. For further information regarding the merger between Katapult and FinServ and its impact on CURO, refer to the description immediately following the table above. Both the equity method investment and the previously recognized investment measured at cost minus impairment are presented within "Investments in Katapult" on the unaudited Condensed Consolidated Balance Sheet. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY The following table summarizes the changes in stockholders' equity for the three and nine months ended September 30, 2021 and 2020 (in thousands, except Common Stock data): Common Stock Treasury Stock, at cost Paid-in capital Retained Earnings (Deficit) AOCI (1) Total Stockholders' Equity Shares Outstanding Par Value Balance at December 31, 2020 41,370,504 $ 9 $ (77,852) $ 79,812 $ 160,068 $ (30,132) $ 131,905 Net income from continuing operations — — — — 25,735 — 25,735 Foreign currency translation adjustment — — — — — 3,855 3,855 Dividends — — — — (2,368) — (2,368) Share based compensation expense — — — 2,683 — — 2,683 Proceeds from exercise of stock options 15,852 — — 48 — — 48 Common stock issued for RSUs vesting, net of shares withheld and withholding paid for employee taxes 237,423 — — (1,668) — — (1,668) Balance at March 31, 2021 41,623,779 $ 9 $ (77,852) $ 80,875 $ 183,435 $ (26,277) $ 160,190 Net income from continuing operations — — — — 104,517 — 104,517 Foreign currency translation adjustment — — — — — 4,714 4,714 Dividends — — — — (4,582) — (4,582) Share based compensation expense — — — 3,467 — — 3,467 Proceeds from exercise of stock options 43,920 — — 191 — — 191 Repurchase of common stock (104,487) — (1,752) — — — (1,752) Common stock issued for RSUs vesting, net of shares withheld and withholding paid for employee taxes 116,329 — — (43) — — (43) Balance at June 30, 2021 41,679,541 $ 9 $ (79,604) $ 84,490 $ 283,370 $ (21,563) $ 266,702 Net loss from continuing operations — — — — (42,039) — (42,039) Foreign currency translation adjustment — — — — — (10,611) (10,611) Dividends — — — — (4,547) — (4,547) Share based compensation expense — — — 3,998 — — 3,998 Proceeds from exercise of stock options 7,200 — — 27 — — 27 Repurchase of common stock (964,566) — (15,940) — — — (15,940) Common stock issued for RSUs vesting, net of shares withheld and withholding paid for employee taxes 14,936 — — (107) — — (107) Balance at September 30 2021 40,737,111 $ 9 $ (95,544) $ 88,408 $ 236,784 $ (32,174) $ 197,483 (1) Accumulated other comprehensive income (loss) Common Stock Treasury Stock, at cost Paid-in capital Retained Earnings (Deficit) AOCI (1) Total Stockholders' Equity Shares Outstanding Par Value Balance at December 31, 2019 41,156,224 $ 9 $ (72,343) $ 68,087 $ 93,423 $ (38,663) $ 50,513 Net income from continuing operations — — — — 36,013 — 36,013 Net income from discontinued operations — — — — 292 — 292 Foreign currency translation adjustment — — — — — (22,193) (22,193) Dividends — — — — (2,256) — (2,256) Share based compensation expense — — — 3,194 — — 3,194 Proceeds from exercise of stock options 42,094 — — 126 — — 126 Repurchase of common stock (540,762) — (5,509) — — — (5,509) Common stock issued for RSUs vesting, net of shares withheld and withholding paid for employee taxes 121,891 — — (609) — — (609) Balance at March 31, 2020 40,779,447 $ 9 $ (77,852) $ 70,798 $ 127,472 $ (60,856) $ 59,571 Net income from continuing operations — — — — 21,080 — 21,080 Net income from discontinued operations — — — — 993 — 993 Foreign currency translation adjustment — — — — — 10,261 10,261 Dividends — — — — (2,244) — (2,244) Share based compensation expense — — — 3,310 — — 3,310 Common stock issued for RSUs vesting, net of shares withheld and withholding paid for employee taxes 105,098 — — (29) — — (29) Balances at June 30, 2020 40,884,545 $ 9 $ (77,852) $ 74,079 $ 147,301 $ (50,595) $ 92,942 Net income from continuing operations — — — — 12,881 — 12,881 Foreign currency translation adjustment — — — — — 5,591 5,591 Dividends — — — — (2,250) — (2,250) Share based compensation expense — — — 3,392 — — 3,392 Common stock issued for RSUs vesting, net of shares withheld and withholding paid for employee taxes 568 — — (3) — — (3) Balance at September 30, 2020 40,885,113 $ 9 $ (77,852) $ 77,468 $ 157,932 $ (45,004) $ 112,553 (1) Accumulated other comprehensive income (loss) Dividends The table below summarizes the Company's quarterly dividends for 2021. Dividends Paid Date of declaration Record date Date paid Dividend per share (in thousands) Q1 2021 January 29, 2021 February 16, 2021 March 2, 2021 $ 0.055 $ 2,284 Q2 2021 May 3, 2021 May 14, 2021 May 27, 2021 $ 0.110 $ 4,580 Q3 2021 July 28, 2021 August 9, 2021 August 19, 2021 $ 0.110 $ 4,556 In October 2021, the Company's Board of Directors declared a dividend under the program of $0.11 per share. See Note 18, "Subsequent Events" |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table presents the computation of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Net income from continuing operations $ (42,039) $ 12,881 $ 88,213 $ 69,974 Net income from discontinued operations, net of tax — — — 1,285 Net income $ (42,039) $ 12,881 $ 88,213 $ 71,259 Weighted average common shares - basic 41,220 40,885 41,459 40,838 Dilutive effect of stock options and restricted stock units — 890 1,963 822 Weighted average common shares - diluted 41,220 41,775 43,422 41,660 Basic earnings per share: Continuing operations $ (1.02) $ 0.32 $ 2.13 $ 1.71 Discontinued operations — — — 0.03 Basic earnings per share $ (1.02) $ 0.32 $ 2.13 $ 1.74 Diluted earnings per share: Continuing operations $ (1.02) $ 0.31 $ 2.03 $ 1.68 Discontinued operations — — — 0.03 Diluted earnings per share $ (1.02) $ 0.31 $ 2.03 $ 1.71 Potential shares of common stock that would have the effect of increasing diluted earnings per share or decreasing diluted loss per share are considered to be anti-dilutive; therefore, these shares are not included in calculating diluted earnings per share. For the three and nine months ended September 30, 2021, there were 0.1 million and 0.1 million, respectively, and for the three and nine months ended September 30, 2020 , there were 1.7 million and 1.3 million, respectively, of potential shares of common stock excluded from the calculation of diluted earnings per share because their effect was anti-dilutive. |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING Segment information is prepared on the same basis that the Company's CODM reviews financial information for operational decision making purposes, including revenues, net revenue, gross margin, segment operating income and other items. On March 10, 2021, the Company acquired Flexiti, as described in Note 14, "Goodwill" and Note 15, "Acquisitions." Under ASC 280, Segment Reporting , Flexiti met the definition of a separate reportable segment. In conjunction with the acquisition, the Company made required disclosures for Flexiti as a separate reportable segment known as "Canada POS Lending," further described below. The Company also renamed the "Canada" reportable segment to the "Canada Direct Lending" reportable segment. Reportable Segments U.S. As of September 30, 2021, the Company operated a total of 160 U.S. retail locations and had an online presence in 27 states. Refer to Note 17, "Store Closures" for additional details related to recent store closures. The Company provides Revolving LOC loans and Installment loans, which include Single-Pay and 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. As disclosed in Note 15, "Acquisitions," the acquisition of Ad Astra closed in January 2020. The results of Ad Astra are included within the U.S. reporting segment. Canada Direct Lending. As of September 30, 2021, the Company operated a total of 201 stores across eight Canadian provinces and territories and had an online presence in seven provinces. The Company provides Revolving LOC loans and Installment loans, which include Single-Pay loans, insurance products to Revolving LOC and Installment loan customers, 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. Canada POS Lending. As of September 30, 2021, the Company served Canadian customers through POS financing available at approximately 7,400 retail locations and online with nearly 2,350 merchant partners across 10 provinces and two territories. The Company provides Revolving LOC loans and a number of other ancillary financial products to its customers in Canada. Results of operations for the nine months ended September 30, 2021 from Canada POS Lending represent results from the date of Flexiti's acquisition, March 10, 2021, through September 30, 2021. The following table illustrates summarized financial information concerning reportable segments (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Revenues by segment: (1) U.S. $ 131,674 $ 132,848 $ 386,960 $ 491,936 Canada Direct Lending 66,190 49,155 186,510 153,382 Canada POS Lending 11,416 — 20,054 — Consolidated revenue $ 209,280 $ 182,003 $ 593,524 $ 645,318 Net revenues by segment: U.S. $ 83,244 $ 89,363 $ 278,852 $ 320,880 Canada Direct Lending 52,187 37,890 154,717 105,459 Canada POS Lending 3,131 — 7,927 — Consolidated net revenue $ 138,562 $ 127,253 $ 441,496 $ 426,339 Gross margin by segment: U.S. $ 39,228 $ 43,384 $ 157,614 $ 187,784 Canada Direct Lending 32,188 20,186 96,271 51,984 Canada POS Lending 2,508 — 6,702 — Consolidated gross margin $ 73,924 $ 63,570 $ 260,587 $ 239,768 Segment operating (loss) income: U.S. $ (62,099) $ (696) $ 75,909 $ 44,587 Canada Direct Lending 23,744 12,755 71,334 27,570 Canada POS Lending (17,059) — (29,789) — Consolidated operating income $ (55,414) $ 12,059 $ 117,454 $ 72,157 Expenditures for long-lived assets by segment: U.S. $ 4,402 $ 2,273 $ 9,226 $ 6,801 Canada Direct Lending 481 67 991 764 Canada POS Lending 2,603 — 5,134 — Consolidated expenditures for long-lived assets $ 7,486 $ 2,340 $ 15,351 $ 7,565 (1) For revenue by product, see Note 3, "Loans Receivable and Revenue." The following table provides the proportion of gross loans receivable by segment (in thousands): September 30, December 31, U.S. $ 189,183 $ 223,451 Canada Direct Lending 390,824 330,271 Canada POS Lending 302,349 — Total gross loans receivable $ 882,356 $ 553,722 The following table represents 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): September 30, December 31, U.S. $ 26,333 $ 36,258 Canada Direct Lending 21,076 23,491 Canada POS Lending 592 — Total net long-lived assets $ 48,001 $ 59,749 The Company's CODM 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 CONTENGENCIES
COMMITMENTS AND CONTENGENCIES | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTENGENCIES | COMMITMENTS AND CONTINGENCIES Securities Litigation and Enforcement In 2018, a putative securities fraud class action lawsuit was filed against the Company and certain of its officers and directors and other related parties 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 (the "Yellowdog Action"). The suit alleged the Company made misleading statements and omitted material information regarding the Company's efforts to transition the Canadian inventory of products from Installment loans to Revolving LOC loans. On December 18, 2020, the Court granted final approval of a $9.0 million settlement and dismissed the case with prejudice. The Company's directors' and officers' insurance policy required the Company to pay the first $2.5 million in fees and settlement and the insurance carriers paid the remaining amounts. For the three and nine months ended September 30, 2021, there was no further expense related to the litigation. In June and July 2020, three shareholder derivative lawsuits were filed in the United States District Court for the District of Delaware against the Company, certain of its directors and officers, and in two of the three lawsuits, a large stockholder. Plaintiffs generally allege the same underlying facts of the Yellowdog Action. In July 2021, the derivative lawsuits were voluntarily dismissed and Plaintiffs refiled two cases in the United States District Court for the District of Kansas. While the Company is vigorously contesting these derivative lawsuits, it cannot determine the timing or nature of their ultimate resolution. The Company does not expect that these derivative lawsuits will have a material adverse impact on the Company's results of operations or financial condition. City of Austin The Company was cited in July 2016 by the City of Austin, Texas for alleged violations of an Austin ordinance addressing products offered by CSOs, which regulates aspects of products offered under the Company's CAB program. 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 this ordinance, when the ordinance is properly construed. In 2017, the Austin Municipal Court agreed with the Company's position that this 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. On May 15, 2020, the City of Austin proposed a second ordinance that became effective June 1, 2020, and implemented restrictions on CSO transactions and revised certain definitions included in the original Austin ordinance. These revisions potentially affect the foundation upon which the Company's previous arguments in municipal court were based. The City of Austin notified the Company that it would begin auditing stores beginning in January 2021. In addition, the Company created and launched a new product during the second quarter of 2021. The city has since deferred these audits, and the Company is in discussions with the City to determine a potential resolution to the outstanding matters. On January 27, 2021, the City of Dallas adopted an ordinance identical to the second ordinance in the City of Austin. Given the change that the Company has made in its products in response to these ordinances, the Company does not anticipate that the CAB program’s past operations will result in material monetary liability in Austin or elsewhere in Texas at this time. Delisle and Kato Class Action Lawsuits In August of 2018, a class action lawsuit, Delisle v. Speedy Cash , was filed against Speedy Cash, a wholly-owned subsidiary of the Company, in the Southern District of California. The complaint alleged that Speedy Cash charged unconscionable interest rates on loans of $2,500 or above, in violation of consumer protection statutes, and sought restitution and public injunctive relief. In October 2018, Speedy Cash filed a motion to compel arbitration and stay proceedings. The District Court denied the motion. On July 2, 2021, the California District Court granted the parties’ joint motion to dismiss and the case was dismissed in its entirety with prejudice as to Plaintiffs’ individual claims and without prejudice as to the claims of the putative class members. On September 3, 2021, a putative class action lawsuit, Kato v. Speedy Cash , was filed against Speedy Cash in the Superior Court of Los Angeles County, alleging similar facts as in Delisle . On October 14th, 2021, the case was removed to the United States District Court for the Central District of California. While Speedy Cash is vigorously contesting this lawsuit, it is too early to determine the final outcome, when it will be resolved, or whether it may be material. 2017 and 2020 CFPB Final Payday, Vehicle Title and Certain High-Cost Loans Rules (collectively, the "CFPB Rules") The payment provisions of the CFPB Rules apply to short-term consumer loans (i.e., loans with terms of 45 days or less), longer-term balloon payment loans (i.e., any payments more than twice the size of other payments) and to longer-term loans with (i) annual percentage rates exceeding 36% and (ii) lender access to the consumer’s account, whether by ACH, card payment, check or otherwise (i.e., a “leveraged payment mechanism”). The payment provisions of the CFPB Rules generally prohibit lenders from seeking payment, without explicit borrower reauthorization, when two consecutive payments have failed due to insufficient funds; and, also require a series of prescribed notices for initial payments and “unusual” payments (e.g., amount, payment date or payment modality), and a consumer rights notice after two consecutive payment attempts have failed due to insufficient funds. The 2017 Final CFPB Rule was originally scheduled to go into effect by August 2019. However, in April 2018, the CFSA and the Consumer Service Alliance of Texas, two industry trade groups (collectively, “Plaintiffs”), brought a lawsuit against the CFPB in a federal district court in Texas which resulted in a court-ordered stay of the CFPB Rules. In August 2020, both the Plaintiffs and the CFPB agreed to a briefing schedule related to their cross-motions for summary judgment. On August 31, 2021, the U.S. District Court granted the CFPB’s motion for summary judgment and denied the Plaintiffs’ motion for summary judgment, and ordered compliance with the CFPB Rules 286 days from the date of the Order. Following the Court’s August 31, 2021 Order, Plaintiffs filed a Notice of Appeal with the Fifth Circuit. Plaintiffs also filed a Motion for Stay Pending Appeal, asking to stay the compliance date until after their appeal is fully and finally resolved. On October 14, 2021, in its unanimous decision, the Fifth Circuit granted the motion by Plaintiffs to extend the compliance date until 286 days after resolution of their appeal. We cannot provide assurance that Plaintiffs will prevail at the appellate level. In the event Plaintiffs are unsuccessful at the appellate level, compliance with the payment provisions of the CFPB Rules would require significant modifications to our payment, customer notification and compliance systems and will create delays in initiating consumer-authorized automated collection attempts when payments we initiate are unsuccessful. These modifications would increase the Company’s costs and reduce revenues. Accordingly, unless the payment provisions are declared invalid, they may have a material adverse effect on our results of operations. Other Legal Matters |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | LEASES Leases entered into by the Company are primarily for retail stores in certain U.S. states and Canadian provinces. Upon entering into an agreement, the Company determines if an arrangement is a lease. Typically, a contract constitutes 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, the Company must assess whether, throughout the period of use, the customer has both (i) the right to obtain substantially all of the economic benefits from use of the identified asset and (ii) 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. Leases classified as finance were immaterial to the Company as of September 30, 2021. Operating leases expire at various times through 2032. Operating leases are included in "Right of use asset - operating leases" and "Lease liability - operating leases" in the unaudited Condensed Consolidated Balance Sheets. The Company recognizes ROU assets and lease liabilities based on the present value of lease payments over the lease term at commencement date. The interest rates 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, Leases , 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 outstanding leases). 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 lease 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 leases have an original term of five years plus two five-year renewal options. The Consumer Price Index is generally 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. The Company has 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 unaudited Condensed Consolidated Balance Sheets. 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 and other information for the three and nine months ended September 30, 2021 and September 30, 2020 (dollars in thousands): Three Months Ended Nine Months Ended September 30, 2021 2020 2021 2020 Operating lease costs: Third-Party $ 8,043 $ 8,567 $ 24,604 $ 22,947 Related-Party 551 6 1,649 2,538 Total operating lease costs $ 8,594 $ 8,573 $ 26,253 $ 25,485 Operating cash flow - Operating leases $ 26,556 $ 25,329 New ROU assets - Operating leases $ 9,893 $ 10,885 Weighted average remaining lease term - Operating leases 5.3 years 6.0 years Weighted average discount rate - Operating leases 9.1 % 10.1 % The following table summarizes the aggregate operating lease payments that the Company was contractually obligated to make under operating leases as of September 30, 2021 (in thousands): Third-Party Related-Party Total Remainder of 2021 $ 8,250 $ 646 $ 8,896 2022 31,419 2,468 33,887 2023 26,202 551 26,753 2024 20,594 174 20,768 2025 14,856 54 14,910 2026 10,778 50 10,828 Thereafter 22,347 — 22,347 Total 134,446 3,943 138,389 Less: Imputed interest (29,394) (340) (29,734) Operating lease liabilities $ 105,052 $ 3,603 $ 108,655 There were no material leases entered into subsequent to the balance sheet date. |
GOODWILL
GOODWILL | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL The change in the carrying amount of goodwill by operating segment for the nine months ended September 30, 2021 was as follows (in thousands): U.S. Canada Direct Lending Canada POS Lending Total Goodwill at December 31, 2020 $ 105,922 $ 30,169 $ — $ 136,091 Acquisition (Note 15) — — 44,901 44,901 Foreign currency translation — (48) (491) (539) Measurement period adjustment — — (4,480) (4,480) Goodwill at September 30, 2021 $ 105,922 $ 30,121 $ 39,930 $ 175,973 The Company tests goodwill at least annually for potential impairment, as of October 1, 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" of the 2020 Form 10-K for additional information on the Company's policy for assessing goodwill for impairment. In the third quarter of 2021, the Company performed an interim review of triggering events for each reporting unit, which would indicate whether a quantitative or qualitative assessment of goodwill impairment was necessary. As a result of the interim triggering event review, the Company concluded an additional assessment was not necessary and did not record an impairment loss during the three months ended September 30, 2021. Flexiti Acquisition The Company completed the acquisition of Flexiti on March 10, 2021. Provisional goodwill was estimated at $44.9 million, based on the preliminary valuation. The Company recorded an additional $4.5 million in net assets acquired during 2021 as part of the measurement period, which caused a decrease in the provisional goodwill to be $39.9 million, net of the foreign currency translation impact, as of September 30, 2021, based on the excess of the purchase price of the business combination over the fair value of the acquired net assets. See Note 15, "Acquisitions" |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONS Flexiti On March 10, 2021, the Company acquired 100% of the outstanding stock of Flexiti. The fair value of total consideration paid was $86.5 million in cash, $6.3 million in debt costs in conjunction with the acquisition and $20.6 million in contingent cash consideration subject to future operating metrics, including revenue less NCOs and loan originations. Flexiti provides POS financing solution to retailers across Canada and will provide the Company capability and scale opportunity in Canada’s credit card and POS financing markets. It enhances the Company's long-term growth and financial and risk profiles, and allows access to the full spectrum of Canadian consumers by adding an established private label credit card platform and POS financing capabilities. The Company now reaches consumers in Canada through all the ways they access credit, directly both in-store and online, via credit cards or at the POS. The Company began consolidating the financial results of Flexiti in the unaudited Condensed Consolidated Financial Statements on March 10, 2021. Flexiti contributed $3.1 million of net revenue and incurred $19.6 million of operating expenses during the three months ended September 30, 2021, and contributed $7.9 million of net revenue and incurred $36.5 million of operating expenses during the nine months ended September 30, 2021. This transaction has been accounted for using the acquisition method of accounting, which requires that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. The Company was the acquirer for purposes of accounting for the business combination. The values assigned to the acquired assets and liabilities assumed are provisional based on the preliminary fair value estimates as of the acquisition date. The values assigned to the assets acquired and liabilities assumed are based on preliminary estimates of fair value available as of the date of this Form 10-Q and may be adjusted during the measurement period of up to 12 months from the date of acquisition as further information becomes available. Any changes in the fair values of the assets acquired and liabilities assumed during the measurement period may result in adjustments to goodwill. The following table presents the preliminary purchase price allocation recorded in the Company’s Condensed Consolidated Balance Sheet as of the date of acquisition (in thousands): Amounts acquired on March 10, 2021 Measurement period adjustments Amounts acquired on March 10, 2021 (as adjusted) Assets Cash and cash equivalents $ 1,267 $ — $ 1,267 Gross loans receivable (1) 196,138 — 196,138 Prepaid expenses and other 687 — 687 Property and equipment 460 — 460 Right-of-use assets 616 — 616 Intangibles 50,876 3,572 54,448 Deferred tax assets 2,741 908 3,649 Total assets $ 252,785 $ 4,480 $ 257,265 Liabilities Accounts payable and accrued liabilities $ 9,356 $ — $ 9,356 Credit facilities 174,367 — 174,367 Lease liabilities 616 — 616 Total liabilities $ 184,339 $ — $ 184,339 Net assets acquired $ 68,446 $ 4,480 $ 72,926 Total consideration paid 113,347 113,347 Goodwill $ 44,901 $ (4,480) $ 40,421 (1) The gross contractual loans receivables as of March 10, 2021 were $208.6 million, of which the Company estimates $12.5 million will not be collected. We are in the process of refining the valuation of acquired assets and liabilities, including goodwill, and expect to finalize the purchase price allocation prior to March 31, 2022. During the nine months ended September 30, 2021, the Company recorded a cumulative net measurement period adjustment that decreased goodwill by $4.5 million. The measurement period adjustment would have resulted in an insignificant increase in amortization expense related to the merchant relationships intangible asset during the three months ended March 31, 2021. The Company made these measurement period adjustments to reflect facts and circumstances that existed as of the acquisition date and did not result from intervening events subsequent to such date. As of September 30, 2021, the primary areas that remain preliminary relate to the valuation of certain loans receivable, intangible assets and certain tax-related balances. The following table sets forth the components of identifiable intangible assets acquired, as adjusted for measurement period adjustments, and their estimated useful lives as of the date of acquisition (dollars in thousands): Fair Value Useful Life Developed technology $ 31,827 5.0 years Merchant relationships 19,684 5.0 years Customer relationships 2,937 3.0 years Total identified intangible assets $ 54,448 Goodwill of $40.4 million represents the excess of the consideration paid over the fair value of the net tangible and intangible assets acquired. The goodwill was primarily attributed to expected synergies created with the Company’s future product offerings and the value of the combined workforce. Goodwill and the intangibles from this transaction are not deductible for Canadian income tax purposes because this was a stock acquisition. In connection with the acquisition, the Company recognized contingent cash consideration of $20.6 million as of the acquisition date. The contingent consideration is based on Flexiti achieving certain operating metrics from April 1, 2021 through March 31, 2023, including revenue less NCOs and loan originations. Cash consideration can range from zero to $32.8 million over the period. As of September 30, 2021, the estimated value of the contingent cash consideration increased to $24.1 million. Refer to Note 8, "Fair Value Measurements" for additional information regarding fair value inputs related to the contingent cash consideration. In connection with the acquisition, the Company also granted RSUs to certain Flexiti employees who joined the Company, with grant-date fair value totaling approximately $8.1 million. Of that total, $4.0 million relates to RSU contingent consideration structured similar to the contingent cash consideration described above. All RSU grants to Flexiti employees will be ratably recognized as stock-based compensation over the requisite service period of two years. Refer to Note 6, "Share-based Compensation" for further information related to these RSUs. The Company incurred costs related to this acquisition of $3.4 million that were recorded in Corporate, district and other expenses in the U.S. segment in the accompanying unaudited Condensed Consolidated Statement of Operations for the nine months ended September 30, 2021. Ad Astra On January 3, 2020, the Company acquired 100% of the outstanding stock of Ad Astra, a related party at the time, for $14.4 million, net of cash received. Prior to the acquisition, Ad Astra had been the Company's exclusive provider of third-party collection services for owned and managed loans in the U.S. that are in later-stage delinquency. The Company began consolidating the financial results of this acquisition in the unaudited Condensed Consolidated Financial Statements on January 3, 2020. Subsequent to the acquisition, operating costs for Ad Astra are included within "Corporate, district and other expenses," consistent with presentation of other internal collection costs. Ad Astra incurred $2.6 million of operating expense during the nine months ended September 30, 2021. The transaction was accounted for using the acquisition method of accounting, which requires that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. The Company was the acquirer for purposes of accounting for the business combination. The values assigned to the assets acquired and liabilities assumed were based on estimates of fair value, which the Company completed based on the information available in March 2020. The following table summarizes the allocation of the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: (in thousands) Amounts acquired on January 3, 2020 Assets Cash and cash equivalents $ 3,360 Accounts receivable 465 Property and equipment 358 Intangible assets 1,101 Goodwill 14,791 Operating lease asset 235 Total assets $ 20,310 Liabilities Accounts payable and accrued liabilities $ 2,264 Operating lease liabilities 235 Total liabilities $ 2,499 Total cash consideration transferred $ 17,811 Goodwill of $14.8 million represents the excess over the fair value of the net tangible and intangible assets acquired. The goodwill was primarily attributed to expected synergies created through cost and process efficiencies in the collections process. The total estimated tax-deductible Goodwill as a result of this transaction is $15.4 million. |
SHARE REPURCHASE PROGRAM
SHARE REPURCHASE PROGRAM | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
SHARE REPURCHASE PROGRAM | SHARE REPURCHASE PROGRAM In May 2021, the Company's Board of Directors authorized a new share repurchase program for up to $50.0 million of its common stock. The table below summarizes share repurchase activity during the three and nine months ended September 30, 2021 (in thousands, except for per share amounts and number of share amounts): Three Months Ended Nine Months Ended Total number of shares repurchased 964,566 1,069,053 Average price paid per share $ 16.53 $ 16.55 Total value of shares repurchased $ 15,940 $ 17,692 Total authorized repurchase amount for the period presented $ 48,248 $ 50,000 Total value of shares repurchased $ 15,940 $ 17,692 Total remaining authorized repurchase amount $ 32,308 $ 32,308 Refer to Note 18, "Subsequent Events" for repurchases during October 2021. |
STORE CLOSURES
STORE CLOSURES | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
STORE CLOSURES | STORE CLOSURES The Company closed or did not renew leases for 49 certain U.S. stores in Illinois (8), Oregon (2), Colorado (2), Washington (1), Texas (31), California (2), Louisiana (1), Nevada (1) and Tennessee (1), of which 19 and 30 closed in the second and third quarters of 2021, respectively. The Company exited Illinois entirely given that state's legislative changes that effectively eliminated the Company's product offerings. The store closure decisions in other states were made after extensive analysis and in response to ongoing migration of customer transactions toward the online channel and the impact of COVID-19 on store traffic and profitability. The Company incurred $5.7 million and $11.4 million of total one-time charges associated with the U.S. store closures for the three and nine months ended September 30, 2021, respectively, as follows: (in thousands) Three Months Ended September 30, 2021 (1) Nine Months Ended September 30, 2021 (2) Store closure costs Severance and employee costs $ 2,714 $ 3,655 Lease termination costs 453 1,018 Net accelerated depreciation and write-off of ROU assets and lease liabilities 2,484 6,741 Total store closure costs $ 5,651 $ 11,414 (1) During the three months ended September 30, 2021, $0.7 million and $4.9 million of store closure costs were recorded within "Corporate, district and other expenses" and within "Cost of providing services," respectively, on the Statement of Operations. (2) During the nine months ended September 30, 2021, the Statement of Operations included $5.7 million of store closure costs recorded within "Corporate, district and other expenses" and $5.7 million recorded within "Cost of providing services." |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Share Repurchase Program In October 2021, the Company repurchased 286,629 shares from October 1, 2021 through October 29, 2021 under the share repurchase program initiated in May 2021, as further discussed in Note 16, "Share Repurchase Program." The total value of shares repurchased was $5.3 million at an average price per share of $18.33. Dividend |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company has prepared the accompanying unaudited Condensed Consolidated Financial Statements in accordance with U.S. GAAP and the accounting policies described in its 2020 Form 10-K. Interim results of operations are not necessarily indicative of results that might be expected for future interim periods or for the year ending December 31, 2021. Following the acquisition of Flexiti, the Company reports Flexiti operations as the "Canada POS Lending" segment throughout this Form 10-Q. Refer to Note 11, "Segment Reporting" for further information. While certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted, the Company believes that the disclosures are adequate to enable a reasonable understanding of the information presented. Additionally, the Company will continue to take advantage of the scaled disclosure requirements permitted by the SEC for. SRCs for the quarter-to-date and year-to-date periods presented. SRC status is determined on an annual basis as of the last business day of the most recently completed second fiscal quarter. The Company qualified as an SRC until June 30, 2021, but after that date, the Company no longer qualified as an SRC and thus will begin to report as a non-SRC beginning with the first quarter of 2022. |
Principles of Consolidation | Principles of Consolidation The unaudited Condensed Consolidated Financial Statements reflect the accounts of CURO and its direct and indirect subsidiaries, including Flexiti, which was acquired on March 10, 2021, and Ad Astra, which was acquired on January 3, 2020. Refer to Note 15, "Acquisitions" for further disclosures related to these acquisitions. Intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of EstimatesThe preparation of the unaudited Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions, including those impacted by COVID-19, that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. Some estimates may also affect the reported amounts of revenues and expenses during the periods presented. Significant estimates that the Company made in the accompanying unaudited Condensed Consolidated Financial Statements include ALL, certain assumptions related to equity investments, goodwill and intangibles, accruals related to self-insurance, CSO liability for losses, estimated tax liabilities and the accounting for the Flexiti acquisition. Actual results may differ from those estimates. |
Acquisition of Flexiti | Acquisition of FlexitiOn March 10, 2021, CURO closed its acquisition of Flexiti, a POS and BNPL provider, in a transaction accounted for as a business combination. Flexiti is one of Canada's fastest-growing POS lenders, offering customers flexible payment plans at retailers that sell large-scale goods such as furniture, appliances, jewelry and electronics. Through its BNPL platform, customers can be approved instantly to shop with their FlexitiCard, which they can use online or in-store to make multiple purchases, within their credit limit, without needing to reapply. |
Change in Accounting Principle Related to Equity Method Investment in Katapult | Change in Accounting Principle Related to Equity Method Investment in Katapult Katapult is an e-commerce focused, FinTech company offering an innovative lease financing solution to consumers and enabling essential transactions at the merchant POS. CURO first invested in Katapult in 2017 as the Company identified multiple catalysts for Katapult's future success: an innovative e-commerce POS business model, a focus on the large and under-penetrated non-prime financing market and a clear and compelling value proposition for merchants and consumers. The Company accounts for its investment in Katapult under the equity method of accounting as of September 30, 2021. Refer to Note 8, "Fair Value Measurements" for further disclosures regarding the accounting for the Company's investment in Katapult. Historically, the Company reported income and loss from its equity method investment in Katapult on a two-month reporting lag. The merger between Katapult and FinServ in June 2021 triggered a change in Katapult's control environment and reporting structure to coincide with SEC reporting requirements. As a result, during the first quarter of 2021 the Company applied a change in accounting principle to reflect the Company's share of Katapult's historical and ongoing results from a two-month reporting lag to a one-quarter reporting lag. The Company believes this change in accounting principle is preferable as it provides the Company with the ability to present the results of its equity method investment after Katapult’s results are publicly available and related internal controls have been completed. The Company has not retrospectively applied the change in accounting principle because the impact on the financial statements was immaterial for all periods presented. |
Troubled Debt Restructuring | Troubled Debt RestructuringIf a borrower experiences financial difficulties, the Company may modify the terms of its loans receivable, known as TDRs. As a result of COVID-19 and the Company's response to provide relief for customers through its Customer Care Program, the Company began modifying loans that qualified as TDRs beginning in the second quarter of 2020. |
Loans Receivable on a Non-Accrual Basis | Loans Receivable on a Non-Accrual BasisThe Company may place loans receivable on non-accrual status due to statutory requirements or, if in management’s judgment, the timely collection of principal and interest becomes uncertain. After a loan is placed on non-accrual status, no further interest is accrued. Loans are not typically returned to accrual status and thus remain on non-accrual status until they are paid or charged-off. Payments are applied initially to any outstanding past due loan balances prior to current loan balances. The Company's policy for determining past due status is consistent with that of the Company's accrual loans, depending on the product. |
Goodwill | 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 its 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. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements ASU 2020-01 In January 2020, the FASB issued ASU 2020-01, Investments - Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) (ASU 2020-01). ASU 2020-01 clarifies the interaction of the accounting for equity securities under Topic 321, the accounting for equity method investments in Topic 323 and the accounting for certain forward contracts and purchased options in Topic 815. The Company adopted ASU 2020-01 as of January 1, 2021, which did not have a material impact on the unaudited Condensed 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 Topic 740. Additionally, the ASU clarifies and amends existing guidance to improve consistent application of its requirements. The Company adopted ASU 2019-12 as of January 1, 2021, which did not have a material impact on the Company's unaudited Condensed Consolidated Financial Statements. Recently Issued Accounting Pronouncements Not Yet Adopted 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, ASU 2019-10 and -11 in November 2019 and ASU 2020-02 in February 2020. The amended standard 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. 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 2019-10 amends the mandatory effective date for ASU 2016-13. As a result, ASU 2016-13 and related amendments are effective for fiscal years beginning after December 15, 2022 for entities that qualified as an SRC as of June 30, 2019, such as the Company. ASU 2016-13 and its amendments should be applied on either a prospective transition or modified-retrospective approach depending on the subtopic. Early adoption is permitted. 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 deferred the adoption of ASU 2016-13 as permitted under ASU 2019-10. The Company is currently assessing the impact that adoption of ASU 2016-13 will have on its financial statements. ASU 2020-04 and subsequent amendments In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides temporary optional expedients and exceptions to U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the upcoming market transition from LIBOR and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate. Entities can elect not to apply certain modification accounting requirements to contracts affected by this reference rate reform, if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. Entities also can elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform if certain criteria are met. The guidance is effective upon issuance and generally can be applied through December 31, 2022. The FASB also issued ASU 2021-01, Reference Rate Reform (Topic 848) : Scope in January 2021. It clarifies that certain optional expedients and exceptions in Topic 848 apply to derivatives that are affected by the discounting transition. The amendments in this ASU affect the guidance in ASU 2020-04 and are effective in the same timeframe as ASU 2020-04. The Company does not expect the adoption of these ASUs to have a material impact on its financial statements. |
Variable Interest Entities | The Company has determined that it is the primary beneficiary of the VIEs and is required to consolidate them. The Company includes the assets and liabilities related to the VIEs in the unaudited Condensed Consolidated Financial Statements. |
Fair Value of Financial Instruments | 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 judgment about the assumptions market participants would use in pricing the asset or liability based on the best information available for the specific 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). |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 were as follows (in thousands): September 30, December 31, Assets Restricted cash $ 42,214 $ 31,994 Loans receivable, net 649,192 306,302 Intercompany receivable (1) 84,811 15,382 Prepaid expenses and other — 388 Deferred tax assets 105 105 Total Assets $ 776,322 $ 354,171 Liabilities Accounts payable and accrued liabilities $ 6,840 $ 34,055 Deferred revenue 110 136 Accrued interest 1,418 1,147 Debt 397,465 139,661 Total Liabilities $ 405,833 $ 174,999 (1) Intercompany receivable VIE balances eliminate upon consolidation. |
LOANS RECEIVABLE AND REVENUE (T
LOANS RECEIVABLE AND REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Summary of Revenue by Product | The following table summarizes revenue by product (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Revolving LOC $ 78,262 $ 58,711 $ 209,033 $ 186,429 Unsecured Installment 72,056 67,408 213,233 260,328 Secured Installment 13,743 16,692 41,591 62,379 Single-Pay 26,568 25,084 75,298 92,973 Total Installment 112,367 109,184 330,122 415,680 Ancillary 18,651 14,108 54,369 43,209 Total revenue (1) $ 209,280 $ 182,003 $ 593,524 $ 645,318 (1) Includes revenue from CSO programs of $43.4 million and $36.7 million for the three months ended September 30, 2021 and 2020, respectively, and $119.7 million and $142.5 million for the nine months ended September 30, 2021 and 2020. |
Summary of Loans Receivable by Product and Related Delinquent Loans | The following tables summarize loans receivable by product and the related delinquent loans receivable (in thousands): September 30, 2021 Revolving LOC Unsecured Installment Secured Installment Single-Pay (1) Total Installment - Company Owned Total Current loans receivable $ 665,130 $ 61,852 $ 31,911 $ 40,331 $ 134,094 $ 799,224 Delinquent loans receivable 54,924 20,953 7,255 — 28,208 83,132 Total loans receivable 720,054 82,805 39,166 40,331 162,302 882,356 Less: allowance for losses (52,262) (14,330) (3,482) (2,469) (20,281) (72,543) Loans receivable, net $ 667,792 $ 68,475 $ 35,684 $ 37,862 $ 142,021 $ 809,813 (1) Of the $40.3 million of Single-Pay receivables, $11.1 million relate to mandated extended payment options for certain Canada Single-Pay loans. September 30, 2021 Revolving LOC Unsecured Installment Secured Installment Total Installment - Company Owned Total Delinquent loans receivable 0-30 days past due $ 27,449 $ 7,933 $ 3,667 $ 11,600 $ 39,049 31-60 days past due 12,721 5,914 1,876 7,790 20,511 61 + days past due 14,754 7,106 1,712 8,818 23,572 Total delinquent loans receivable $ 54,924 $ 20,953 $ 7,255 $ 28,208 $ 83,132 December 31, 2020 Revolving LOC Unsecured Installment Secured Installment Single-Pay (1) Total Installment - Company Owned Total Current loans receivable $ 321,105 $ 78,235 $ 40,358 $ 43,780 $ 162,373 $ 483,478 Delinquent loans receivable 37,779 24,190 8,275 — 32,465 70,244 Total loans receivable 358,884 102,425 48,633 43,780 194,838 553,722 Less: allowance for losses (51,958) (24,073) (7,047) (3,084) (34,204) (86,162) Loans receivable, net $ 306,926 $ 78,352 $ 41,586 $ 40,696 $ 160,634 $ 467,560 (1) Of the $43.8 million of Single-Pay receivables, $11.2 million relate to mandated extended payment options for certain Canada Single-Pay loans. December 31, 2020 Revolving LOC Unsecured Installment Secured Installment Total Installment - Company Owned Total Delinquent loans receivable 0-30 days past due $ 17,517 $ 10,361 $ 3,764 $ 14,125 $ 31,642 31-60 days past due 9,276 7,124 2,199 9,323 18,599 61 + days past due 10,986 6,705 2,312 9,017 20,003 Total delinquent loans receivable $ 37,779 $ 24,190 $ 8,275 $ 32,465 $ 70,244 The following tables summarize loans Guaranteed by the Company under CSO programs and the related delinquent receivables (in thousands): September 30, 2021 Unsecured Installment Secured Installment Total Installment - Guaranteed by the Company Current loans receivable Guaranteed by the Company $ 34,090 $ 740 $ 34,830 Delinquent loans receivable Guaranteed by the Company 8,385 207 8,592 Total loans receivable Guaranteed by the Company 42,475 947 43,422 Less: Liability for losses on CSO lender-owned consumer loans (6,973) (34) (7,007) Loans receivable Guaranteed by the Company, net $ 35,502 $ 913 $ 36,415 September 30, 2021 Unsecured Installment Secured Installment Total Installment - Guaranteed by the Company Delinquent loans receivable 0-30 days past due $ 6,798 $ 166 $ 6,964 31-60 days past due 1,247 35 1,282 61+ days past due 340 6 346 Total delinquent loans receivable $ 8,385 $ 207 $ 8,592 December 31, 2020 Unsecured Installment Secured Installment Total Installment - Guaranteed by the Company Current loans receivable Guaranteed by the Company $ 37,096 $ 775 $ 37,871 Delinquent loans receivable Guaranteed by the Company 6,079 155 6,234 Total loans receivable Guaranteed by the Company 43,175 930 44,105 Less: Liability for losses on CSO lender-owned consumer loans (7,160) (68) (7,228) Loans receivable Guaranteed by the Company, net $ 36,015 $ 862 $ 36,877 December 31, 2020 Unsecured Installment Secured Installment Total Installment - Guaranteed by the Company Delinquent loans receivable 0-30 days past due $ 5,435 $ 103 $ 5,538 31-60 days past due 490 37 527 61 + days past due 154 15 169 Total delinquent loans receivable $ 6,079 $ 155 $ 6,234 |
Summary of Activity in Allowance for Loan Losses, Credit Services Organization Guarantee Liability | The following tables summarize activity in the ALL and the liability for losses on CSO lender-owned consumer loans in total (in thousands): Three Months Ended Revolving LOC Unsecured Installment Secured Installment Single-Pay Total Installment Other Total Allowance for loan losses: Balance, beginning of period $ 44,847 $ 16,701 $ 3,880 $ 2,432 $ 23,013 $ — $ 67,860 Charge-offs (27,974) (18,400) (4,252) (24,640) (47,292) (869) (76,135) Recoveries 8,564 4,811 1,996 18,493 25,300 401 34,265 Net charge-offs (19,410) (13,589) (2,256) (6,147) (21,992) (468) (41,870) Provision for losses 27,800 11,223 1,858 6,223 19,304 468 47,572 Effect of foreign currency translation (975) (5) — (39) (44) — (1,019) Balance, end of period $ 52,262 $ 14,330 $ 3,482 $ 2,469 $ 20,281 $ — $ 72,543 Liability for losses on CSO lender-owned consumer loans: Balance, beginning of period $ — $ 5,234 $ 31 $ — $ 5,265 $ — $ 5,265 Increase in liability — 1,739 3 — 1,742 — 1,742 Balance, end of period $ — $ 6,973 $ 34 $ — $ 7,007 $ — $ 7,007 Three Months Ended Revolving LOC Unsecured Installment Secured Installment Single-Pay Total Installment Other Total Allowance for loan losses: Balance, beginning of period $ 47,319 $ 18,798 $ 7,883 $ 2,802 $ 29,483 $ — $ 76,802 Charge-offs (22,781) (14,781) (6,648) (21,473) (42,902) (972) (66,655) Recoveries 4,618 5,186 2,635 17,034 24,855 498 29,971 Net charge-offs (18,163) (9,595) (4,013) (4,439) (18,047) (474) (36,684) Provision for losses 21,655 9,647 3,239 4,799 17,685 474 39,814 Effect of foreign currency translation 606 9 — 35 44 — 650 Balance, end of period $ 51,417 $ 18,859 $ 7,109 $ 3,197 $ 29,165 $ — $ 80,582 Liability for losses on CSO lender-owned consumer loans: Balance, beginning of period $ — $ 5,128 $ 36 $ — $ 5,164 $ — $ 5,164 Increase in liability — 1,002 32 — 1,034 — 1,034 Balance, end of period $ — $ 6,130 $ 68 $ — $ 6,198 $ — $ 6,198 Nine Months Ended Revolving LOC Unsecured Installment Secured Installment Single-Pay Total Installment Other Total Allowance for loan losses: Balance, beginning of period $ 51,958 $ 24,073 $ 7,047 $ 3,084 $ 34,204 $ — $ 86,162 Charge-offs (81,175) (58,337) (14,979) (68,680) (141,996) (2,525) (225,696) Recoveries 23,351 16,811 6,756 57,321 80,888 1,331 105,570 Net charge-offs (57,824) (41,526) (8,223) (11,359) (61,108) (1,194) (120,126) Provision for losses 58,274 31,782 4,658 10,743 47,183 1,194 106,651 Effect of foreign currency translation (146) 1 — 1 2 — (144) Balance, end of period $ 52,262 $ 14,330 $ 3,482 $ 2,469 $ 20,281 $ — $ 72,543 Liability for losses on CSO lender-owned consumer loans: Balance, beginning of period $ — $ 7,160 $ 68 $ — $ 7,228 $ — $ 7,228 Decrease in liability — (187) (34) — (221) — (221) Balance, end of period $ — $ 6,973 $ 34 $ — $ 7,007 $ — $ 7,007 Nine Months Ended Revolving LOC Unsecured Installment Secured Installment Single-Pay Total Installment Other Total Allowance for loan losses: Balance, beginning of period $ 55,074 $ 35,587 $ 10,305 $ 5,869 $ 51,761 $ — $ 106,835 Charge-offs (104,074) (83,468) (31,505) (83,162) (198,135) (3,000) (305,209) Recoveries 17,129 17,982 8,505 68,804 95,291 1,475 113,895 Net charge-offs (86,945) (65,486) (23,000) (14,358) (102,844) (1,525) (191,314) Provision for losses 83,987 48,766 19,804 11,850 80,420 1,525 165,932 Effect of foreign currency translation (699) (8) — (164) (172) — (871) Balance, end of period $ 51,417 $ 18,859 $ 7,109 $ 3,197 $ 29,165 $ — $ 80,582 Liability for losses on CSO lender-owned consumer loans: Balance, beginning of period $ — $ 10,553 $ 70 $ — $ 10,623 $ — $ 10,623 Decrease in liability — (4,423) (2) — (4,425) — (4,425) Balance, end of period $ — $ 6,130 $ 68 $ — $ 6,198 $ — $ 6,198 |
Financing Receivable, Troubled Debt Restructuring | The table below presents TDRs that are related to the Customer Care Program implemented in response to COVID-19, included in both gross loans receivable and the impairment included in the ALL (in thousands): As of September 30, 2021 As of Current TDR gross receivables $ 11,754 $ 13,563 Delinquent TDR gross receivables 4,196 6,309 Total TDR gross receivables 15,950 19,872 Less: Impairment included in the allowance for loan losses (2,829) (3,482) Less: Additional allowance (2,536) (4,497) Outstanding TDR receivables, net of impairment $ 10,585 $ 11,893 The tables below present loans modified and classified as TDRs during the periods presented (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Pre-modification TDR loans receivable $ 3,586 $ 9,007 $ 11,953 $ 37,948 Post-modification TDR loans receivable 3,182 8,186 10,654 34,195 Total concessions included in gross charge-offs $ 404 $ 821 $ 1,299 $ 3,753 The table below presents the Company's average outstanding TDR loans receivable, interest income recognized on TDR loans and number of TDR loans for the periods presented (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Average outstanding TDR loans receivable $ 16,190 $ 20,484 $ 17,911 $ 21,011 Interest income recognized 4,155 6,510 14,277 10,907 Number of TDR loans 2,624 5,361 8,872 22,190 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Debt consisted of the following (in thousands): September 30, 2021 December 31, 2020 7.50% Senior Secured Notes $ 734,533 $ — 8.25% Senior Secured Notes — 680,000 Non-Recourse U.S. SPV Facility 44,940 43,586 Non-Recourse Canada SPV Facility 96,821 96,075 Non-Recourse Flexiti SPE Facility 255,704 — Debt $ 1,131,998 $ 819,661 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Activity | A summary of the activity of time-based, market-based and performance-based unvested RSUs as of September 30, 2021 and changes during the nine months ended September 30, 2021 is presented in the following table: Number of RSUs Time-Based Market-Based Performance-Based Weighted Average December 31, 2020 1,012,792 758,713 — $ 10.26 Granted 1,089,372 299,053 253,310 15.34 Vested (489,858) — — 11.06 Forfeited (58,610) (51,032) — 11.22 September 30, 2021 1,553,696 1,006,734 253,310 $ 13.05 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Not Measured at Fair Value | The table below presents the assets and liabilities that were carried at fair value on the unaudited Condensed Consolidated Balance Sheets at September 30, 2021 (in thousands): Estimated Fair Value Carrying Value September 30, Level 1 Level 2 Level 3 Total Financial assets: Cash Surrender Value of Life Insurance $ 7,994 $ 7,994 $ — $ — $ 7,994 Financial liabilities: Non-qualified deferred compensation plan $ 4,945 $ 4,945 $ — $ — $ 4,945 Contingent consideration related to acquisition 24,129 — — 24,129 24,129 The table below presents the assets and liabilities that were carried at fair value on the unaudited Condensed Consolidated Balance Sheets at December 31, 2020 (in thousands): Estimated Fair Value Carrying Value December 31, Level 1 Level 2 Level 3 Total Financial assets: Cash Surrender Value of Life Insurance $ 7,140 $ 7,140 $ — $ — $ 7,140 Financial liabilities: Non-qualified deferred compensation plan $ 4,690 $ 4,690 $ — $ — $ 4,690 The table below presents the assets and liabilities that were not carried at fair value on the unaudited Condensed Consolidated Balance Sheets at September 30, 2021 (in thousands): Estimated Fair Value Carrying Value September 30, Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 205,785 $ 205,785 $ — $ — $ 205,785 Restricted cash 66,168 66,168 — — 66,168 Loans receivable, net 809,813 — — 809,813 809,813 Financial liabilities: Liability for losses on CSO lender-owned consumer loans $ 7,007 $ — $ — $ 7,007 $ 7,007 7.50% Senior Secured Notes 734,533 — 757,650 — 757,650 Non-Recourse U.S. SPV facility 44,940 — — 49,456 49,456 Non-Recourse Canada SPV facility 96,821 — — 97,818 97,818 Non-Recourse Flexiti SPE facility 255,704 — — 259,940 259,940 The table below presents the assets and liabilities that were not carried at fair value on the unaudited Condensed Consolidated Balance Sheets at December 31, 2020 (in thousands): Estimated Fair Value Carrying Value December 31, Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 213,343 $ 213,343 $ — $ — $ 213,343 Restricted cash 54,765 54,765 — — 54,765 Loans receivable, net 467,560 — — 467,560 467,560 Financial liabilities: Liability for losses on CSO lender-owned consumer loans $ 7,228 $ — $ — $ 7,228 $ 7,228 8.25% Senior Secured Notes 680,000 — 646,000 — 646,000 Non-Recourse U.S. SPV facility 43,586 — — 49,456 49,456 Non-Recourse Canada SPV facility 96,075 — — 97,971 97,971 |
Summary of Equity Method Investments | The table below presents the Company's investment in Katapult (in thousands): Equity Method Investment Measurement Alternative (1) Total Investment in Katapult Balance at December 31, 2019 $ 10,068 $ — $ 10,068 Equity method (loss) - Q1 2020 (1,618) — (1,618) Balance at March 31, 2020 8,450 — 8,450 Equity method income - Q2 2020 741 741 Balance at June 30, 2020 9,191 — 9,191 Equity method income - Q3 2020 3,530 — 3,530 Accounting policy change for certain securities from equity method investment to measurement alternative (12,452) 12,452 — Purchases of common stock warrants and preferred shares 4,030 7,157 11,187 Balance at September 30, 2020 4,299 19,609 23,908 Equity method income - Q4 2020 1,893 — 1,893 Purchases of common stock 1,570 — 1,570 Balance at December 31, 2020 7,762 19,609 27,371 Equity method income - Q1 2021 546 — 546 Balance at March 31, 2021 8,308 19,609 27,917 Equity method income - Q2 2021 1,712 — 1,712 Conversion of investment (2) 6,481 (19,609) (13,128) Balance at June 30, 2021 16,501 — 16,501 Equity method loss - Q3 2021 (1,582) $ — (1,582) Balance at September 30, 2021 $ 14,919 $ — $ 14,919 Classification as of December 31, 2020 Level 3, not carried at fair value Level 3, carried at measurement alternative Classification as of September 30, 2021 Level 3, not carried at fair value N/A (1) The Company elected to measure this equity security without a readily determinable fair value equal to its cost minus impairment. If the Company identifies an observable price change in orderly transactions for same or similar investment in Katapult, it will measure the equity security at fair value as of the date that the observable transaction occurred. (2) On June 9, 2021, Katapult completed its merger with FinServ. Immediately prior to the merger, the Company first converted all of its preferred stock and exercised all common stock warrants, and then exchanged all shares of Katapult common stock for $146.9 million in cash and 18.9 million shares of common stock in the resulting public company, Katapult (NASDAQ: KPLT). The Company's entire investment in Katapult is now accounted for under the equity method of accounting. The Company recorded a related net gain of $135.4 million on its equity method investment in Katapult, based on the pro rata cost basis of the investment and the discharge of the guarantee provided during the second quarter of 2021. |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of Stockholders Equity | The following table summarizes the changes in stockholders' equity for the three and nine months ended September 30, 2021 and 2020 (in thousands, except Common Stock data): Common Stock Treasury Stock, at cost Paid-in capital Retained Earnings (Deficit) AOCI (1) Total Stockholders' Equity Shares Outstanding Par Value Balance at December 31, 2020 41,370,504 $ 9 $ (77,852) $ 79,812 $ 160,068 $ (30,132) $ 131,905 Net income from continuing operations — — — — 25,735 — 25,735 Foreign currency translation adjustment — — — — — 3,855 3,855 Dividends — — — — (2,368) — (2,368) Share based compensation expense — — — 2,683 — — 2,683 Proceeds from exercise of stock options 15,852 — — 48 — — 48 Common stock issued for RSUs vesting, net of shares withheld and withholding paid for employee taxes 237,423 — — (1,668) — — (1,668) Balance at March 31, 2021 41,623,779 $ 9 $ (77,852) $ 80,875 $ 183,435 $ (26,277) $ 160,190 Net income from continuing operations — — — — 104,517 — 104,517 Foreign currency translation adjustment — — — — — 4,714 4,714 Dividends — — — — (4,582) — (4,582) Share based compensation expense — — — 3,467 — — 3,467 Proceeds from exercise of stock options 43,920 — — 191 — — 191 Repurchase of common stock (104,487) — (1,752) — — — (1,752) Common stock issued for RSUs vesting, net of shares withheld and withholding paid for employee taxes 116,329 — — (43) — — (43) Balance at June 30, 2021 41,679,541 $ 9 $ (79,604) $ 84,490 $ 283,370 $ (21,563) $ 266,702 Net loss from continuing operations — — — — (42,039) — (42,039) Foreign currency translation adjustment — — — — — (10,611) (10,611) Dividends — — — — (4,547) — (4,547) Share based compensation expense — — — 3,998 — — 3,998 Proceeds from exercise of stock options 7,200 — — 27 — — 27 Repurchase of common stock (964,566) — (15,940) — — — (15,940) Common stock issued for RSUs vesting, net of shares withheld and withholding paid for employee taxes 14,936 — — (107) — — (107) Balance at September 30 2021 40,737,111 $ 9 $ (95,544) $ 88,408 $ 236,784 $ (32,174) $ 197,483 (1) Accumulated other comprehensive income (loss) Common Stock Treasury Stock, at cost Paid-in capital Retained Earnings (Deficit) AOCI (1) Total Stockholders' Equity Shares Outstanding Par Value Balance at December 31, 2019 41,156,224 $ 9 $ (72,343) $ 68,087 $ 93,423 $ (38,663) $ 50,513 Net income from continuing operations — — — — 36,013 — 36,013 Net income from discontinued operations — — — — 292 — 292 Foreign currency translation adjustment — — — — — (22,193) (22,193) Dividends — — — — (2,256) — (2,256) Share based compensation expense — — — 3,194 — — 3,194 Proceeds from exercise of stock options 42,094 — — 126 — — 126 Repurchase of common stock (540,762) — (5,509) — — — (5,509) Common stock issued for RSUs vesting, net of shares withheld and withholding paid for employee taxes 121,891 — — (609) — — (609) Balance at March 31, 2020 40,779,447 $ 9 $ (77,852) $ 70,798 $ 127,472 $ (60,856) $ 59,571 Net income from continuing operations — — — — 21,080 — 21,080 Net income from discontinued operations — — — — 993 — 993 Foreign currency translation adjustment — — — — — 10,261 10,261 Dividends — — — — (2,244) — (2,244) Share based compensation expense — — — 3,310 — — 3,310 Common stock issued for RSUs vesting, net of shares withheld and withholding paid for employee taxes 105,098 — — (29) — — (29) Balances at June 30, 2020 40,884,545 $ 9 $ (77,852) $ 74,079 $ 147,301 $ (50,595) $ 92,942 Net income from continuing operations — — — — 12,881 — 12,881 Foreign currency translation adjustment — — — — — 5,591 5,591 Dividends — — — — (2,250) — (2,250) Share based compensation expense — — — 3,392 — — 3,392 Common stock issued for RSUs vesting, net of shares withheld and withholding paid for employee taxes 568 — — (3) — — (3) Balance at September 30, 2020 40,885,113 $ 9 $ (77,852) $ 77,468 $ 157,932 $ (45,004) $ 112,553 (1) Accumulated other comprehensive income (loss) |
Schedule of Dividends | The table below summarizes the Company's quarterly dividends for 2021. Dividends Paid Date of declaration Record date Date paid Dividend per share (in thousands) Q1 2021 January 29, 2021 February 16, 2021 March 2, 2021 $ 0.055 $ 2,284 Q2 2021 May 3, 2021 May 14, 2021 May 27, 2021 $ 0.110 $ 4,580 Q3 2021 July 28, 2021 August 9, 2021 August 19, 2021 $ 0.110 $ 4,556 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the computation of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Net income from continuing operations $ (42,039) $ 12,881 $ 88,213 $ 69,974 Net income from discontinued operations, net of tax — — — 1,285 Net income $ (42,039) $ 12,881 $ 88,213 $ 71,259 Weighted average common shares - basic 41,220 40,885 41,459 40,838 Dilutive effect of stock options and restricted stock units — 890 1,963 822 Weighted average common shares - diluted 41,220 41,775 43,422 41,660 Basic earnings per share: Continuing operations $ (1.02) $ 0.32 $ 2.13 $ 1.71 Discontinued operations — — — 0.03 Basic earnings per share $ (1.02) $ 0.32 $ 2.13 $ 1.74 Diluted earnings per share: Continuing operations $ (1.02) $ 0.31 $ 2.03 $ 1.68 Discontinued operations — — — 0.03 Diluted earnings per share $ (1.02) $ 0.31 $ 2.03 $ 1.71 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Summary of Financial Information by Segment | The following table illustrates summarized financial information concerning reportable segments (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Revenues by segment: (1) U.S. $ 131,674 $ 132,848 $ 386,960 $ 491,936 Canada Direct Lending 66,190 49,155 186,510 153,382 Canada POS Lending 11,416 — 20,054 — Consolidated revenue $ 209,280 $ 182,003 $ 593,524 $ 645,318 Net revenues by segment: U.S. $ 83,244 $ 89,363 $ 278,852 $ 320,880 Canada Direct Lending 52,187 37,890 154,717 105,459 Canada POS Lending 3,131 — 7,927 — Consolidated net revenue $ 138,562 $ 127,253 $ 441,496 $ 426,339 Gross margin by segment: U.S. $ 39,228 $ 43,384 $ 157,614 $ 187,784 Canada Direct Lending 32,188 20,186 96,271 51,984 Canada POS Lending 2,508 — 6,702 — Consolidated gross margin $ 73,924 $ 63,570 $ 260,587 $ 239,768 Segment operating (loss) income: U.S. $ (62,099) $ (696) $ 75,909 $ 44,587 Canada Direct Lending 23,744 12,755 71,334 27,570 Canada POS Lending (17,059) — (29,789) — Consolidated operating income $ (55,414) $ 12,059 $ 117,454 $ 72,157 Expenditures for long-lived assets by segment: U.S. $ 4,402 $ 2,273 $ 9,226 $ 6,801 Canada Direct Lending 481 67 991 764 Canada POS Lending 2,603 — 5,134 — Consolidated expenditures for long-lived assets $ 7,486 $ 2,340 $ 15,351 $ 7,565 (1) For revenue by product, see Note 3, "Loans Receivable and Revenue." The following table provides the proportion of gross loans receivable by segment (in thousands): September 30, December 31, U.S. $ 189,183 $ 223,451 Canada Direct Lending 390,824 330,271 Canada POS Lending 302,349 — Total gross loans receivable $ 882,356 $ 553,722 |
Summary of Long-lived Assets by Geographic Region | The following table represents 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): September 30, December 31, U.S. $ 26,333 $ 36,258 Canada Direct Lending 21,076 23,491 Canada POS Lending 592 — Total net long-lived assets $ 48,001 $ 59,749 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Summary of Operating Lease Costs | The following table summarizes the operating lease costs and other information for the three and nine months ended September 30, 2021 and September 30, 2020 (dollars in thousands): Three Months Ended Nine Months Ended September 30, 2021 2020 2021 2020 Operating lease costs: Third-Party $ 8,043 $ 8,567 $ 24,604 $ 22,947 Related-Party 551 6 1,649 2,538 Total operating lease costs $ 8,594 $ 8,573 $ 26,253 $ 25,485 Operating cash flow - Operating leases $ 26,556 $ 25,329 New ROU assets - Operating leases $ 9,893 $ 10,885 Weighted average remaining lease term - Operating leases 5.3 years 6.0 years Weighted average discount rate - Operating leases 9.1 % 10.1 % |
Summary of Future Minimum Lease Payments, ASC 842 | The following table summarizes the aggregate operating lease payments that the Company was contractually obligated to make under operating leases as of September 30, 2021 (in thousands): Third-Party Related-Party Total Remainder of 2021 $ 8,250 $ 646 $ 8,896 2022 31,419 2,468 33,887 2023 26,202 551 26,753 2024 20,594 174 20,768 2025 14,856 54 14,910 2026 10,778 50 10,828 Thereafter 22,347 — 22,347 Total 134,446 3,943 138,389 Less: Imputed interest (29,394) (340) (29,734) Operating lease liabilities $ 105,052 $ 3,603 $ 108,655 |
GOODWILL (Tables)
GOODWILL (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The change in the carrying amount of goodwill by operating segment for the nine months ended September 30, 2021 was as follows (in thousands): U.S. Canada Direct Lending Canada POS Lending Total Goodwill at December 31, 2020 $ 105,922 $ 30,169 $ — $ 136,091 Acquisition (Note 15) — — 44,901 44,901 Foreign currency translation — (48) (491) (539) Measurement period adjustment — — (4,480) (4,480) Goodwill at September 30, 2021 $ 105,922 $ 30,121 $ 39,930 $ 175,973 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table presents the preliminary purchase price allocation recorded in the Company’s Condensed Consolidated Balance Sheet as of the date of acquisition (in thousands): Amounts acquired on March 10, 2021 Measurement period adjustments Amounts acquired on March 10, 2021 (as adjusted) Assets Cash and cash equivalents $ 1,267 $ — $ 1,267 Gross loans receivable (1) 196,138 — 196,138 Prepaid expenses and other 687 — 687 Property and equipment 460 — 460 Right-of-use assets 616 — 616 Intangibles 50,876 3,572 54,448 Deferred tax assets 2,741 908 3,649 Total assets $ 252,785 $ 4,480 $ 257,265 Liabilities Accounts payable and accrued liabilities $ 9,356 $ — $ 9,356 Credit facilities 174,367 — 174,367 Lease liabilities 616 — 616 Total liabilities $ 184,339 $ — $ 184,339 Net assets acquired $ 68,446 $ 4,480 $ 72,926 Total consideration paid 113,347 113,347 Goodwill $ 44,901 $ (4,480) $ 40,421 (1) The gross contractual loans receivables as of March 10, 2021 were $208.6 million, of which the Company estimates $12.5 million will not be collected. The following table sets forth the components of identifiable intangible assets acquired, as adjusted for measurement period adjustments, and their estimated useful lives as of the date of acquisition (dollars in thousands): Fair Value Useful Life Developed technology $ 31,827 5.0 years Merchant relationships 19,684 5.0 years Customer relationships 2,937 3.0 years Total identified intangible assets $ 54,448 The following table summarizes the allocation of the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: (in thousands) Amounts acquired on January 3, 2020 Assets Cash and cash equivalents $ 3,360 Accounts receivable 465 Property and equipment 358 Intangible assets 1,101 Goodwill 14,791 Operating lease asset 235 Total assets $ 20,310 Liabilities Accounts payable and accrued liabilities $ 2,264 Operating lease liabilities 235 Total liabilities $ 2,499 Total cash consideration transferred $ 17,811 |
SHARE REPURCHASE PROGRAM (Table
SHARE REPURCHASE PROGRAM (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of Share Repurchase Program | The table below summarizes share repurchase activity during the three and nine months ended September 30, 2021 (in thousands, except for per share amounts and number of share amounts): Three Months Ended Nine Months Ended Total number of shares repurchased 964,566 1,069,053 Average price paid per share $ 16.53 $ 16.55 Total value of shares repurchased $ 15,940 $ 17,692 Total authorized repurchase amount for the period presented $ 48,248 $ 50,000 Total value of shares repurchased $ 15,940 $ 17,692 Total remaining authorized repurchase amount $ 32,308 $ 32,308 |
STORE CLOSURES (Tables)
STORE CLOSURES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Store Closure | The Company incurred $5.7 million and $11.4 million of total one-time charges associated with the U.S. store closures for the three and nine months ended September 30, 2021, respectively, as follows: (in thousands) Three Months Ended September 30, 2021 (1) Nine Months Ended September 30, 2021 (2) Store closure costs Severance and employee costs $ 2,714 $ 3,655 Lease termination costs 453 1,018 Net accelerated depreciation and write-off of ROU assets and lease liabilities 2,484 6,741 Total store closure costs $ 5,651 $ 11,414 (1) During the three months ended September 30, 2021, $0.7 million and $4.9 million of store closure costs were recorded within "Corporate, district and other expenses" and within "Cost of providing services," respectively, on the Statement of Operations. (2) During the nine months ended September 30, 2021, the Statement of Operations included $5.7 million of store closure costs recorded within "Corporate, district and other expenses" and $5.7 million recorded within "Cost of providing services." |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS (Details) | 3 Months Ended | 8 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($) | Mar. 31, 2021 | Dec. 31, 2020reporting_unit | Aug. 31, 2020 | Sep. 30, 2021USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Number of reporting units | reporting_unit | 2 | ||||
Loss on impairment of goodwill | $ | $ 0 | $ 0 | |||
Katapult | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Lag period | 2 months | 2 months |
VARIABLE INTEREST ENTITIES - Ca
VARIABLE INTEREST ENTITIES - Carrying Amounts of Consolidated VIE Assets and Liabilities (Details) $ in Thousands | Sep. 30, 2021USD ($)facility | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) |
Assets | |||
Restricted cash | $ 66,168 | $ 54,765 | $ 62,527 |
Loans receivable, net | 809,813 | 467,560 | |
Prepaid expenses and other | 31,558 | 27,994 | |
Deferred tax assets | 7,850 | 0 | |
Total Assets | 1,592,123 | 1,182,986 | |
Liabilities | |||
Accounts payable and accrued liabilities | 75,701 | 49,624 | |
Deferred revenue | 15,243 | 5,394 | |
Accrued interest | 11,106 | 20,123 | |
Debt | 1,131,998 | 819,661 | |
Total Liabilities | $ 1,394,640 | 1,051,081 | |
Variable Interest Entity | |||
Variable Interest Entity [Line Items] | |||
Number of credit facilities held | facility | 3 | ||
Assets | |||
Restricted cash | $ 42,214 | 31,994 | $ 33,696 |
Loans receivable, net | 649,192 | 306,302 | |
Intercompany receivable | 84,811 | 15,382 | |
Prepaid expenses and other | 0 | 388 | |
Deferred tax assets | 105 | 105 | |
Total Assets | 776,322 | 354,171 | |
Liabilities | |||
Accounts payable and accrued liabilities | 6,840 | 34,055 | |
Deferred revenue | 110 | 136 | |
Accrued interest | 1,418 | 1,147 | |
Debt | 397,465 | 139,661 | |
Total Liabilities | $ 405,833 | $ 174,999 |
LOANS RECEIVABLE AND REVENUE -
LOANS RECEIVABLE AND REVENUE - Narrative (Details) - Consumer Portfolio Segment - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Credit Services Organization Programs | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
TDRs that were charged off | $ 2.9 | $ 5.1 | $ 11 | $ 6 | |
Installment | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Percent of revenues | 1.00% | 1.00% | |||
Loans classified as nonaccrual | $ 5.1 | $ 5.1 | $ 4.4 | ||
Revolving LOC | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Loans classified as nonaccrual | 6.1 | 6.1 | $ 6.2 | ||
Revolving LOC | Credit Services Organization Programs | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Commitment to lend additional funds | $ 2.1 | $ 2.1 |
LOANS RECEIVABLE AND REVENUE _2
LOANS RECEIVABLE AND REVENUE - Revenue by Product (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue from External Customer [Line Items] | ||||
Revenue | $ 209,280 | $ 182,003 | $ 593,524 | $ 645,318 |
Credit Services Organization Programs | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 43,400 | 36,700 | 119,700 | 142,500 |
Consumer Portfolio Segment | Revolving LOC | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 78,262 | 58,711 | 209,033 | 186,429 |
Consumer Portfolio Segment | Total Installment | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 112,367 | 109,184 | 330,122 | 415,680 |
Consumer Portfolio Segment | Unsecured Installment | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 72,056 | 67,408 | 213,233 | 260,328 |
Consumer Portfolio Segment | Secured Installment | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 13,743 | 16,692 | 41,591 | 62,379 |
Consumer Portfolio Segment | Single-Pay | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 26,568 | 25,084 | 75,298 | 92,973 |
Ancillary | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | $ 18,651 | $ 14,108 | $ 54,369 | $ 43,209 |
LOANS RECEIVABLE AND REVENUE _3
LOANS RECEIVABLE AND REVENUE - Loans Receivable by Product and Delinquency (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | $ 882,356 | $ 553,722 |
Less: allowance for losses | (72,543) | (86,162) |
Loans receivable, net | 809,813 | 467,560 |
Current loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 799,224 | 483,478 |
Delinquent loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 83,132 | 70,244 |
Consumer Portfolio Segment | Delinquent loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 83,132 | 70,244 |
Consumer Portfolio Segment | Revolving LOC | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 720,054 | 358,884 |
Less: allowance for losses | (52,262) | (51,958) |
Loans receivable, net | 667,792 | 306,926 |
Consumer Portfolio Segment | Revolving LOC | Current loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 665,130 | 321,105 |
Consumer Portfolio Segment | Revolving LOC | Delinquent loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 54,924 | 37,779 |
Consumer Portfolio Segment | Total Installment - Company Owned | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 162,302 | 194,838 |
Less: allowance for losses | (20,281) | (34,204) |
Loans receivable, net | 142,021 | 160,634 |
Consumer Portfolio Segment | Total Installment - Company Owned | Current loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 134,094 | 162,373 |
Consumer Portfolio Segment | Total Installment - Company Owned | Delinquent loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 28,208 | 32,465 |
Consumer Portfolio Segment | Unsecured Installment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 82,805 | 102,425 |
Less: allowance for losses | (14,330) | (24,073) |
Loans receivable, net | 68,475 | 78,352 |
Consumer Portfolio Segment | Unsecured Installment | Current loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 61,852 | 78,235 |
Consumer Portfolio Segment | Unsecured Installment | Delinquent loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 20,953 | 24,190 |
Consumer Portfolio Segment | Secured Installment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 39,166 | 48,633 |
Less: allowance for losses | (3,482) | (7,047) |
Loans receivable, net | 35,684 | 41,586 |
Consumer Portfolio Segment | Secured Installment | Current loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 31,911 | 40,358 |
Consumer Portfolio Segment | Secured Installment | Delinquent loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 7,255 | 8,275 |
Consumer Portfolio Segment | Single-Pay | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 40,331 | 43,780 |
Less: allowance for losses | (2,469) | (3,084) |
Loans receivable, net | 37,862 | 40,696 |
Consumer Portfolio Segment | Single-Pay | Current loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 40,331 | 43,780 |
Consumer Portfolio Segment | Single-Pay | Delinquent loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 0 | 0 |
Consumer Portfolio Segment | Single-Pay | Canada | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | $ 11,100 | $ 11,200 |
LOANS RECEIVABLE AND REVENUE _4
LOANS RECEIVABLE AND REVENUE - Delinquent Loans - Aging Analysis (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | $ 882,356 | $ 553,722 |
Delinquent loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 83,132 | 70,244 |
Consumer Portfolio Segment | Delinquent loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 83,132 | 70,244 |
Consumer Portfolio Segment | 0-30 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 39,049 | 31,642 |
Consumer Portfolio Segment | 31-60 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 20,511 | 18,599 |
Consumer Portfolio Segment | 61 + days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 23,572 | 20,003 |
Consumer Portfolio Segment | Revolving LOC | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 720,054 | 358,884 |
Consumer Portfolio Segment | Revolving LOC | Delinquent loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 54,924 | 37,779 |
Consumer Portfolio Segment | Revolving LOC | 0-30 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 27,449 | 17,517 |
Consumer Portfolio Segment | Revolving LOC | 31-60 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 12,721 | 9,276 |
Consumer Portfolio Segment | Revolving LOC | 61 + days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 14,754 | 10,986 |
Consumer Portfolio Segment | Total Installment - Company Owned | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 162,302 | 194,838 |
Consumer Portfolio Segment | Total Installment - Company Owned | Delinquent loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 28,208 | 32,465 |
Consumer Portfolio Segment | Total Installment - Company Owned | 0-30 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 11,600 | 14,125 |
Consumer Portfolio Segment | Total Installment - Company Owned | 31-60 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 7,790 | 9,323 |
Consumer Portfolio Segment | Total Installment - Company Owned | 61 + days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 8,818 | 9,017 |
Consumer Portfolio Segment | Unsecured Installment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 82,805 | 102,425 |
Consumer Portfolio Segment | Unsecured Installment | Delinquent loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 20,953 | 24,190 |
Consumer Portfolio Segment | Unsecured Installment | 0-30 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 7,933 | 10,361 |
Consumer Portfolio Segment | Unsecured Installment | 31-60 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 5,914 | 7,124 |
Consumer Portfolio Segment | Unsecured Installment | 61 + days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 7,106 | 6,705 |
Consumer Portfolio Segment | Secured Installment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 39,166 | 48,633 |
Consumer Portfolio Segment | Secured Installment | Delinquent loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 7,255 | 8,275 |
Consumer Portfolio Segment | Secured Installment | 0-30 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 3,667 | 3,764 |
Consumer Portfolio Segment | Secured Installment | 31-60 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 1,876 | 2,199 |
Consumer Portfolio Segment | Secured Installment | 61 + days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | $ 1,712 | $ 2,312 |
LOANS RECEIVABLE AND REVENUE _5
LOANS RECEIVABLE AND REVENUE - Loans Receivable by Product, Credit Services Organization (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Current loans receivable Guaranteed by the Company | $ 34,830 | $ 37,871 | ||||
Delinquent loans receivable Guaranteed by the Company | 8,592 | 6,234 | ||||
Total loans receivable Guaranteed by the Company | 43,422 | 44,105 | ||||
Less: Liability for losses on CSO lender-owned consumer loans | (7,007) | (7,228) | ||||
Loans receivable Guaranteed by the Company, net | 36,415 | 36,877 | ||||
Consumer Portfolio Segment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Less: Liability for losses on CSO lender-owned consumer loans | (7,007) | $ (5,265) | (7,228) | $ (6,198) | $ (5,164) | $ (10,623) |
Consumer Portfolio Segment | Unsecured Installment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Current loans receivable Guaranteed by the Company | 34,090 | 37,096 | ||||
Delinquent loans receivable Guaranteed by the Company | 8,385 | 6,079 | ||||
Total loans receivable Guaranteed by the Company | 42,475 | 43,175 | ||||
Less: Liability for losses on CSO lender-owned consumer loans | (6,973) | (5,234) | (7,160) | (6,130) | (5,128) | (10,553) |
Loans receivable Guaranteed by the Company, net | 35,502 | 36,015 | ||||
Consumer Portfolio Segment | Secured Installment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Current loans receivable Guaranteed by the Company | 740 | 775 | ||||
Delinquent loans receivable Guaranteed by the Company | 207 | 155 | ||||
Total loans receivable Guaranteed by the Company | 947 | 930 | ||||
Less: Liability for losses on CSO lender-owned consumer loans | (34) | $ (31) | (68) | $ (68) | $ (36) | $ (70) |
Loans receivable Guaranteed by the Company, net | $ 913 | $ 862 |
LOANS RECEIVABLE AND REVENUE _6
LOANS RECEIVABLE AND REVENUE - Delinquent Loans, Credit Services Organization - Aging Analysis (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable Guaranteed by the Company | $ 43,422 | $ 44,105 |
Consumer Portfolio Segment | Delinquent loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable Guaranteed by the Company | 8,592 | 6,234 |
Consumer Portfolio Segment | 0-30 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable Guaranteed by the Company | 6,964 | 5,538 |
Consumer Portfolio Segment | 31-60 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable Guaranteed by the Company | 1,282 | 527 |
Consumer Portfolio Segment | 61 + days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable Guaranteed by the Company | 346 | 169 |
Consumer Portfolio Segment | Unsecured Installment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable Guaranteed by the Company | 42,475 | 43,175 |
Consumer Portfolio Segment | Unsecured Installment | Delinquent loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable Guaranteed by the Company | 8,385 | 6,079 |
Consumer Portfolio Segment | Unsecured Installment | 0-30 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable Guaranteed by the Company | 6,798 | 5,435 |
Consumer Portfolio Segment | Unsecured Installment | 31-60 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable Guaranteed by the Company | 1,247 | 490 |
Consumer Portfolio Segment | Unsecured Installment | 61 + days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable Guaranteed by the Company | 340 | 154 |
Consumer Portfolio Segment | Secured Installment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable Guaranteed by the Company | 947 | 930 |
Consumer Portfolio Segment | Secured Installment | Delinquent loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable Guaranteed by the Company | 207 | 155 |
Consumer Portfolio Segment | Secured Installment | 0-30 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable Guaranteed by the Company | 166 | 103 |
Consumer Portfolio Segment | Secured Installment | 31-60 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable Guaranteed by the Company | 35 | 37 |
Consumer Portfolio Segment | Secured Installment | 61 + days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable Guaranteed by the Company | $ 6 | $ 15 |
LOANS RECEIVABLE AND REVENUE _7
LOANS RECEIVABLE AND REVENUE - Allowance For Doubtful Accounts - CSO Guarantee Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Allowance for loan losses: | ||||
Provision for loan losses | $ 70,718 | $ 54,750 | $ 152,028 | $ 218,979 |
Liability for losses on CSO lender-owned consumer loans: | ||||
Balance, beginning of period | 7,228 | |||
Balance, end of period | 7,007 | 7,007 | ||
Consumer Portfolio Segment | ||||
Allowance for loan losses: | ||||
Balance, beginning of period | 67,860 | 76,802 | 86,162 | 106,835 |
Charge-offs | (76,135) | (66,655) | (225,696) | (305,209) |
Recoveries | 34,265 | 29,971 | 105,570 | 113,895 |
Net charge-offs | (41,870) | (36,684) | (120,126) | (191,314) |
Provision for loan losses | 47,572 | 39,814 | 106,651 | 165,932 |
Effect of foreign currency translation | (1,019) | 650 | (144) | (871) |
Balance, end of period | 72,543 | 80,582 | 72,543 | 80,582 |
Liability for losses on CSO lender-owned consumer loans: | ||||
Balance, beginning of period | 5,265 | 5,164 | 7,228 | 10,623 |
Increase (decrease) in liability | 1,742 | 1,034 | (221) | (4,425) |
Balance, end of period | 7,007 | 6,198 | 7,007 | 6,198 |
Consumer Portfolio Segment | Revolving LOC | ||||
Allowance for loan losses: | ||||
Balance, beginning of period | 44,847 | 47,319 | 51,958 | 55,074 |
Charge-offs | (27,974) | (22,781) | (81,175) | (104,074) |
Recoveries | 8,564 | 4,618 | 23,351 | 17,129 |
Net charge-offs | (19,410) | (18,163) | (57,824) | (86,945) |
Provision for loan losses | 27,800 | 21,655 | 58,274 | 83,987 |
Effect of foreign currency translation | (975) | 606 | (146) | (699) |
Balance, end of period | 52,262 | 51,417 | 52,262 | 51,417 |
Liability for losses on CSO lender-owned consumer loans: | ||||
Balance, beginning of period | 0 | 0 | 0 | 0 |
Increase (decrease) in liability | 0 | 0 | 0 | 0 |
Balance, end of period | 0 | 0 | 0 | 0 |
Consumer Portfolio Segment | Total Installment | ||||
Allowance for loan losses: | ||||
Balance, beginning of period | 23,013 | 29,483 | 34,204 | 51,761 |
Charge-offs | (47,292) | (42,902) | (141,996) | (198,135) |
Recoveries | 25,300 | 24,855 | 80,888 | 95,291 |
Net charge-offs | (21,992) | (18,047) | (61,108) | (102,844) |
Provision for loan losses | 19,304 | 17,685 | 47,183 | 80,420 |
Effect of foreign currency translation | (44) | 44 | 2 | (172) |
Balance, end of period | 20,281 | 29,165 | 20,281 | 29,165 |
Liability for losses on CSO lender-owned consumer loans: | ||||
Balance, beginning of period | 5,265 | 5,164 | 7,228 | 10,623 |
Increase (decrease) in liability | 1,742 | 1,034 | (221) | (4,425) |
Balance, end of period | 7,007 | 6,198 | 7,007 | 6,198 |
Consumer Portfolio Segment | Unsecured Installment | ||||
Allowance for loan losses: | ||||
Balance, beginning of period | 16,701 | 18,798 | 24,073 | 35,587 |
Charge-offs | (18,400) | (14,781) | (58,337) | (83,468) |
Recoveries | 4,811 | 5,186 | 16,811 | 17,982 |
Net charge-offs | (13,589) | (9,595) | (41,526) | (65,486) |
Provision for loan losses | 11,223 | 9,647 | 31,782 | 48,766 |
Effect of foreign currency translation | (5) | 9 | 1 | (8) |
Balance, end of period | 14,330 | 18,859 | 14,330 | 18,859 |
Liability for losses on CSO lender-owned consumer loans: | ||||
Balance, beginning of period | 5,234 | 5,128 | 7,160 | 10,553 |
Increase (decrease) in liability | 1,739 | 1,002 | (187) | (4,423) |
Balance, end of period | 6,973 | 6,130 | 6,973 | 6,130 |
Consumer Portfolio Segment | Secured Installment | ||||
Allowance for loan losses: | ||||
Balance, beginning of period | 3,880 | 7,883 | 7,047 | 10,305 |
Charge-offs | (4,252) | (6,648) | (14,979) | (31,505) |
Recoveries | 1,996 | 2,635 | 6,756 | 8,505 |
Net charge-offs | (2,256) | (4,013) | (8,223) | (23,000) |
Provision for loan losses | 1,858 | 3,239 | 4,658 | 19,804 |
Effect of foreign currency translation | 0 | 0 | 0 | 0 |
Balance, end of period | 3,482 | 7,109 | 3,482 | 7,109 |
Liability for losses on CSO lender-owned consumer loans: | ||||
Balance, beginning of period | 31 | 36 | 68 | 70 |
Increase (decrease) in liability | 3 | 32 | (34) | (2) |
Balance, end of period | 34 | 68 | 34 | 68 |
Consumer Portfolio Segment | Single-Pay | ||||
Allowance for loan losses: | ||||
Balance, beginning of period | 2,432 | 2,802 | 3,084 | 5,869 |
Charge-offs | (24,640) | (21,473) | (68,680) | (83,162) |
Recoveries | 18,493 | 17,034 | 57,321 | 68,804 |
Net charge-offs | (6,147) | (4,439) | (11,359) | (14,358) |
Provision for loan losses | 6,223 | 4,799 | 10,743 | 11,850 |
Effect of foreign currency translation | (39) | 35 | 1 | (164) |
Balance, end of period | 2,469 | 3,197 | 2,469 | 3,197 |
Liability for losses on CSO lender-owned consumer loans: | ||||
Balance, beginning of period | 0 | 0 | 0 | 0 |
Increase (decrease) in liability | 0 | 0 | 0 | 0 |
Balance, end of period | 0 | 0 | 0 | 0 |
Consumer Portfolio Segment | Other | ||||
Allowance for loan losses: | ||||
Balance, beginning of period | 0 | 0 | 0 | 0 |
Charge-offs | (869) | (972) | (2,525) | (3,000) |
Recoveries | 401 | 498 | 1,331 | 1,475 |
Net charge-offs | (468) | (474) | (1,194) | (1,525) |
Provision for loan losses | 468 | 474 | 1,194 | 1,525 |
Effect of foreign currency translation | 0 | 0 | 0 | 0 |
Balance, end of period | 0 | 0 | 0 | 0 |
Liability for losses on CSO lender-owned consumer loans: | ||||
Balance, beginning of period | 0 | 0 | 0 | 0 |
Increase (decrease) in liability | 0 | 0 | 0 | 0 |
Balance, end of period | $ 0 | $ 0 | $ 0 | $ 0 |
LOANS RECEIVABLE AND REVENUE _8
LOANS RECEIVABLE AND REVENUE - TDR Loans Receivable (Details) - Consumer Portfolio Segment - Credit Services Organization Programs - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDR gross receivables | $ 15,950 | $ 19,872 |
Less: Impairment included in the allowance for loan losses | (2,829) | (3,482) |
Less: Additional allowance | (2,536) | (4,497) |
Outstanding TDR receivables, net of impairment | 10,585 | 11,893 |
Current loans receivable | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDR gross receivables | 11,754 | 13,563 |
Delinquent loans receivable | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDR gross receivables | $ 4,196 | $ 6,309 |
LOANS RECEIVABLE AND REVENUE _9
LOANS RECEIVABLE AND REVENUE - New Loans Modified and Classified as TDRs (Details) - Consumer Portfolio Segment - Credit Services Organization Programs - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Pre-modification TDR loans receivable | $ 3,586 | $ 9,007 | $ 11,953 | $ 37,948 |
Post-modification TDR loans receivable | 3,182 | 8,186 | 10,654 | 34,195 |
Total concessions included in gross charge-offs | $ 404 | $ 821 | $ 1,299 | $ 3,753 |
LOANS RECEIVABLE AND REVENUE_10
LOANS RECEIVABLE AND REVENUE - Outstanding TDR Loans Receivable and Interest Income (Details) - Credit Services Organization Programs - Consumer Portfolio Segment $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)contract | Sep. 30, 2020USD ($)contract | Sep. 30, 2021USD ($)contract | Sep. 30, 2020USD ($)contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Average outstanding TDR loans receivable | $ 16,190 | $ 20,484 | $ 17,911 | $ 21,011 |
Interest income recognized | $ 4,155 | $ 6,510 | $ 14,277 | $ 10,907 |
Number of TDR loans | contract | 2,624 | 5,361 | 8,872 | 22,190 |
CREDIT SERVICES ORGANIZATION (D
CREDIT SERVICES ORGANIZATION (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Credit services organization, fees receivable | $ 5,200 | $ 5,000 |
Guarantor obligations, maximum exposure, undiscounted | 35,300 | 36,600 |
Liability for losses on CSO lender-owned consumer loans | 7,007 | 7,228 |
Amounts placed in collateral accounts | $ 5,100 | $ 5,500 |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
CSO program loan terms | 6 months |
DEBT - Schedule of Long Term De
DEBT - Schedule of Long Term Debt (Details) $ in Thousands, $ in Millions | Sep. 30, 2021USD ($) | Sep. 30, 2021CAD ($) | Jul. 31, 2021 | Dec. 31, 2020USD ($) | Aug. 31, 2018 |
Debt Instrument [Line Items] | |||||
Debt | $ 1,131,998 | $ 819,661 | |||
7.50% Senior Secured Notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 7.50% | 7.50% | |||
8.25% Senior Secured Notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 8.25% | 8.25% | |||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 7.50% | ||||
Senior Notes | 7.50% Senior Secured Notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 7.50% | 7.50% | 7.50% | ||
Debt | $ 734,533 | $ 0 | |||
Senior Notes | 8.25% Senior Secured Notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 8.25% | 8.25% | 8.25% | 8.25% | |
Debt | $ 0 | $ 680,000 | |||
Line of Credit | Non-Recourse U.S. SPV facility | |||||
Debt Instrument [Line Items] | |||||
Debt | 44,900 | ||||
Line of Credit | Revolving Credit Facility | Non-Recourse U.S. SPV facility | |||||
Debt Instrument [Line Items] | |||||
Debt | 44,940 | 43,586 | |||
Line of Credit | Revolving Credit Facility | Non-Recourse Canada SPV Facility | |||||
Debt Instrument [Line Items] | |||||
Debt | 96,821 | $ 96.8 | 96,075 | ||
Line of Credit | Revolving Credit Facility | Non-Recourse Flexiti SPE Facility | |||||
Debt Instrument [Line Items] | |||||
Debt | $ 255,704 | $ 0 |
DEBT - Senior Secured Notes (De
DEBT - Senior Secured Notes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jul. 31, 2021 | Dec. 31, 2020 | Aug. 31, 2018 | |
Line of Credit Facility [Line Items] | |||||||
Loss on extinguishment of debt | $ 40,206 | $ 0 | $ 40,206 | $ 0 | |||
7.50% Senior Secured Notes | |||||||
Line of Credit Facility [Line Items] | |||||||
Stated interest rate | 7.50% | 7.50% | |||||
8.25% Senior Secured Notes | |||||||
Line of Credit Facility [Line Items] | |||||||
Stated interest rate | 8.25% | 8.25% | |||||
Senior Notes | |||||||
Line of Credit Facility [Line Items] | |||||||
Stated interest rate | 7.50% | ||||||
Senior Notes | 7.50% Senior Secured Notes | |||||||
Line of Credit Facility [Line Items] | |||||||
Stated interest rate | 7.50% | 7.50% | 7.50% | ||||
Debt instrument, face amount | $ 750,000 | ||||||
Capitalized financing costs | $ 15,500 | ||||||
Loss on extinguishment of debt | $ 40,200 | ||||||
Senior Notes | 8.25% Senior Secured Notes | |||||||
Line of Credit Facility [Line Items] | |||||||
Stated interest rate | 8.25% | 8.25% | 8.25% | 8.25% | |||
Debt instrument, face amount | $ 690,000 | ||||||
Capitalized financing costs | $ 13,900 |
DEBT - Non-Recourse U.S. SPV Fa
DEBT - Non-Recourse U.S. SPV Facility (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Debt | $ 1,131,998 | $ 819,661 |
Non-Recourse U.S. SPV facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Debt | 44,900 | |
Deferred financing costs | 4,500 | |
Non-Recourse U.S. SPV facility | Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Line of credit facility, borrowing capacity | $ 200,000 | |
Commitment fee (as percent) | 0.50% | |
Debt | $ 44,940 | $ 43,586 |
Non-Recourse U.S. SPV facility | Revolving Credit Facility | Line of Credit | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Basis spread | 6.25% |
DEBT - Non-Recourse Canada SPV
DEBT - Non-Recourse Canada SPV Facility (Details) $ in Thousands, $ in Millions | Sep. 30, 2021USD ($) | Sep. 30, 2021CAD ($) | Dec. 31, 2020USD ($) | Aug. 31, 2018CAD ($) |
Line of Credit Facility [Line Items] | ||||
Debt | $ 1,131,998 | $ 819,661 | ||
Line of Credit | Non-Recourse Canada SPV Facility | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 175 | |||
Credit facility, expansion capacity | $ 250 | |||
Commitment fee on unused portion | 0.50% | |||
Debt | $ 96,821 | $ 96.8 | $ 96,075 | |
Deferred financing costs | $ 1,000 | |||
Line of Credit | Non-Recourse Canada SPV Facility | Revolving Credit Facility | Canadian Dollar Offered Rate (CDOR) | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread | 6.75% |
DEBT - Non-Recourse Flexiti SPE
DEBT - Non-Recourse Flexiti SPE Facility (Details) $ in Thousands, $ in Millions | Sep. 30, 2021USD ($) | Mar. 31, 2021CAD ($) | Dec. 31, 2020USD ($) |
Debt Instrument [Line Items] | |||
Debt | $ 1,131,998 | $ 819,661 | |
Revolving Credit Facility | Non-Recourse Flexiti SPE Facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Debt | 255,704 | $ 0 | |
Deferred financing costs | $ 4,200 | ||
Revolving Credit Facility | Non-Recourse Flexiti SPE Facility | Line of Credit | Minimum | |||
Debt Instrument [Line Items] | |||
Commitment fee on unused portion | 0.50% | ||
Revolving Credit Facility | Non-Recourse Flexiti SPE Facility | Line of Credit | Maximum | |||
Debt Instrument [Line Items] | |||
Commitment fee on unused portion | 1.00% | ||
Revolving Credit Facility | Non-Recourse Flexiti SPE Facility | Line of Credit | Class A Borrowings | |||
Debt Instrument [Line Items] | |||
Line of credit facility, borrowing capacity | $ 500 | ||
Revolving Credit Facility | Non-Recourse Flexiti SPE Facility | Line of Credit | Canadian Dollar Offered Rate (CDOR) | |||
Debt Instrument [Line Items] | |||
Basis spread | 4.40% |
DEBT - Senior Revolver (Details
DEBT - Senior Revolver (Details) $ in Millions | Sep. 30, 2021USD ($)lender | Sep. 30, 2021USD ($)lender | Jul. 31, 2021 |
7.50% Senior Secured Notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 7.50% | 7.50% | |
Line of Credit | Revolving Credit Facility | Senior Revolver | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 50 | $ 50 | |
Number of banks | lender | 4 | 4 | |
Line of Credit | Revolving Credit Facility | Senior Revolver | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread | 5.00% | ||
Line of Credit | Letter of Credit | Senior Revolver | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 5 | $ 5 | |
Debt instrument, term | 1 year | ||
Senior Notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 7.50% | ||
Senior Notes | 7.50% Senior Secured Notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 7.50% | 7.50% | 7.50% |
DEBT - Cash Money Revolving Cre
DEBT - Cash Money Revolving Credit Facility (Details) - Line of Credit - Cash Money Revolving Credit Facility $ in Millions | Sep. 30, 2021CAD ($) |
Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 10 |
Line of credit facility, remaining borrowing capacity | $ 9.9 |
Revolving Credit Facility | Prime Rate | |
Debt Instrument [Line Items] | |
Basis spread | 1.95% |
Standby Letters of Credit | |
Debt Instrument [Line Items] | |
Outstanding letters of credit | $ 0.1 |
SHARE-BASED COMPENSATION - Narr
SHARE-BASED COMPENSATION - Narrative (Details) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)typeshares | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)typeshares | Sep. 30, 2020USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 4 | $ 3.4 | $ 10.1 | $ 9.9 |
Unrecognized compensation costs | $ 24.7 | $ 24.7 | ||
Compensation cost not yet recognized, period for recognition | 1 year 10 months 24 days | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of award types | type | 3 | 3 | ||
Time-Based | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Market-Based | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Performance period of stockholder return | 3 years | |||
Performance-Based | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 2 years | |||
2017 Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | shares | 5 | 5 |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summary of RSUs and PSUs (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Time-Based | ||
Number of Shares | ||
Outstanding, beginning of period (in shares) | 1,012,792 | |
Granted (in shares) | 1,089,372 | |
Vested (in shares) | (489,858) | |
Forfeited (in shares) | (58,610) | |
Outstanding, end of period (in shares) | 1,553,696 | |
Weighted Average Grant Date Fair Value per Share | ||
Weighted average grant date fair value, outstanding (in usd per share) | $ 13.05 | $ 10.26 |
Weighted average grant date fair value, granted (in usd per share) | 15.34 | |
Weighted average grant date fair value, vested (in usd per share) | 11.06 | |
Weighted average grant date fair value, forfeited (in usd per share) | $ 11.22 | |
Market-Based | ||
Number of Shares | ||
Outstanding, beginning of period (in shares) | 758,713 | |
Granted (in shares) | 299,053 | |
Vested (in shares) | 0 | |
Forfeited (in shares) | (51,032) | |
Outstanding, end of period (in shares) | 1,006,734 | |
Weighted Average Grant Date Fair Value per Share | ||
Weighted average grant date fair value, outstanding (in usd per share) | $ 13.05 | 10.26 |
Weighted average grant date fair value, granted (in usd per share) | 15.34 | |
Weighted average grant date fair value, vested (in usd per share) | 11.06 | |
Weighted average grant date fair value, forfeited (in usd per share) | $ 11.22 | |
Performance-Based | ||
Number of Shares | ||
Outstanding, beginning of period (in shares) | 0 | |
Granted (in shares) | 253,310 | |
Vested (in shares) | 0 | |
Forfeited (in shares) | 0 | |
Outstanding, end of period (in shares) | 253,310 | |
Weighted Average Grant Date Fair Value per Share | ||
Weighted average grant date fair value, outstanding (in usd per share) | $ 13.05 | $ 10.26 |
Weighted average grant date fair value, granted (in usd per share) | 15.34 | |
Weighted average grant date fair value, vested (in usd per share) | 11.06 | |
Weighted average grant date fair value, forfeited (in usd per share) | $ 11.22 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Contingency [Line Items] | ||||||
Effective income tax rate (as percent) | 24.90% | 3.00% | ||||
Federal and state/provincial statutory rates | 26.00% | |||||
Gain (loss) on equity method transaction | $ (40.2) | $ 146.9 | ||||
Release of valuation allowance | $ (0.4) | |||||
Tax benefit related to share-based compensation | 0.2 | |||||
Tax expense related to nondeductible transaction costs | 1.3 | |||||
Additional accrual | 0.3 | |||||
Recognition of research and development tax credit | 0.9 | |||||
Income tax benefit from CARES Act | 9.1 | |||||
Income tax benefit from utilization of NOLs in certain entities in Canada | $ 0.6 | $ 4.6 | ||||
Tax positions reserve | $ 1.1 | |||||
Undistributed foreign earnings | $ 222.7 | 222.7 | ||||
Canada Revenue Agency | Pro forma | ||||||
Income Tax Contingency [Line Items] | ||||||
Expected tax if earnings were distributed to the U.S. | $ 11.1 |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of Assets and Liabilities Measured and Not Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jul. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Aug. 31, 2018 |
Financial assets: | |||||
Restricted cash | $ 66,168 | $ 54,765 | $ 62,527 | ||
Financial liabilities: | |||||
Contingent consideration related to acquisition | $ 24,129 | $ 0 | |||
Senior Notes | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Stated interest rate | 7.50% | ||||
7.50% Senior Secured Notes | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Stated interest rate | 7.50% | ||||
7.50% Senior Secured Notes | Senior Notes | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Stated interest rate | 7.50% | 7.50% | |||
8.25% Senior Secured Notes | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Stated interest rate | 8.25% | ||||
8.25% Senior Secured Notes | Senior Notes | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Stated interest rate | 8.25% | 8.25% | 8.25% | ||
Fair Value, Measurements, Recurring | Measurement period adjustments | |||||
Financial assets: | |||||
Cash Surrender Value of Life Insurance | $ 7,994 | $ 7,140 | |||
Financial liabilities: | |||||
Non-qualified deferred compensation plan | 4,945 | 4,690 | |||
Contingent consideration related to acquisition | 24,129 | ||||
Fair Value, Measurements, Recurring | Estimated Fair Value | |||||
Financial assets: | |||||
Cash Surrender Value of Life Insurance | 7,994 | 7,140 | |||
Financial liabilities: | |||||
Non-qualified deferred compensation plan | 4,945 | 4,690 | |||
Contingent consideration related to acquisition | 24,129 | ||||
Fair Value, Measurements, Recurring | Estimated Fair Value | Level 1 | |||||
Financial assets: | |||||
Cash Surrender Value of Life Insurance | 7,994 | 7,140 | |||
Financial liabilities: | |||||
Non-qualified deferred compensation plan | 4,945 | 4,690 | |||
Contingent consideration related to acquisition | 0 | ||||
Fair Value, Measurements, 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 | |||
Contingent consideration related to acquisition | 0 | ||||
Fair Value, Measurements, 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 | |||
Contingent consideration related to acquisition | 24,129 | ||||
Fair Value, Measurements, Nonrecurring | Measurement period adjustments | |||||
Financial assets: | |||||
Cash and cash equivalents | 205,785 | 213,343 | |||
Restricted cash | 66,168 | 54,765 | |||
Loans receivable, net | 809,813 | 467,560 | |||
Financial liabilities: | |||||
Liability for losses on CSO lender-owned consumer loans | 7,007 | 7,228 | |||
Fair Value, Measurements, Nonrecurring | Measurement period adjustments | 7.50% Senior Secured Notes | Senior Notes | |||||
Financial liabilities: | |||||
Debt | 734,533 | ||||
Fair Value, Measurements, Nonrecurring | Measurement period adjustments | 8.25% Senior Secured Notes | Senior Notes | |||||
Financial liabilities: | |||||
Debt | 680,000 | ||||
Fair Value, Measurements, Nonrecurring | Measurement period adjustments | Non-Recourse U.S. SPV facility | |||||
Financial liabilities: | |||||
Debt | 44,940 | 43,586 | |||
Fair Value, Measurements, Nonrecurring | Measurement period adjustments | Non-Recourse Canada SPV Facility | |||||
Financial liabilities: | |||||
Debt | 96,821 | 96,075 | |||
Fair Value, Measurements, Nonrecurring | Measurement period adjustments | Non-Recourse Flexiti SPE Facility | |||||
Financial liabilities: | |||||
Debt | 255,704 | ||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | |||||
Financial assets: | |||||
Cash and cash equivalents | 205,785 | 213,343 | |||
Restricted cash | 66,168 | 54,765 | |||
Loans receivable, net | 809,813 | 467,560 | |||
Financial liabilities: | |||||
Liability for losses on CSO lender-owned consumer loans | 7,007 | 7,228 | |||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | 7.50% Senior Secured Notes | Senior Notes | |||||
Financial liabilities: | |||||
Debt | 757,650 | ||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | 8.25% Senior Secured Notes | Senior Notes | |||||
Financial liabilities: | |||||
Debt | 646,000 | ||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Non-Recourse U.S. SPV facility | |||||
Financial liabilities: | |||||
Debt | 49,456 | 49,456 | |||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Non-Recourse Canada SPV Facility | |||||
Financial liabilities: | |||||
Debt | 97,818 | 97,971 | |||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Non-Recourse Flexiti SPE Facility | |||||
Financial liabilities: | |||||
Debt | 259,940 | ||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 1 | |||||
Financial assets: | |||||
Cash and cash equivalents | 205,785 | 213,343 | |||
Restricted cash | 66,168 | 54,765 | |||
Loans receivable, net | 0 | 0 | |||
Financial liabilities: | |||||
Liability for losses on CSO lender-owned consumer loans | 0 | 0 | |||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 1 | 7.50% Senior Secured Notes | Senior Notes | |||||
Financial liabilities: | |||||
Debt | 0 | ||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 1 | 8.25% Senior Secured Notes | Senior Notes | |||||
Financial liabilities: | |||||
Debt | 0 | ||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 1 | Non-Recourse U.S. SPV facility | |||||
Financial liabilities: | |||||
Debt | 0 | 0 | |||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 1 | Non-Recourse Canada SPV Facility | |||||
Financial liabilities: | |||||
Debt | 0 | 0 | |||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 1 | Non-Recourse Flexiti SPE Facility | |||||
Financial liabilities: | |||||
Debt | 0 | ||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 2 | |||||
Financial assets: | |||||
Cash and cash equivalents | 0 | 0 | |||
Restricted cash | 0 | 0 | |||
Loans receivable, net | 0 | 0 | |||
Financial liabilities: | |||||
Liability for losses on CSO lender-owned consumer loans | 0 | 0 | |||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 2 | 7.50% Senior Secured Notes | Senior Notes | |||||
Financial liabilities: | |||||
Debt | 757,650 | ||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 2 | 8.25% Senior Secured Notes | Senior Notes | |||||
Financial liabilities: | |||||
Debt | 646,000 | ||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 2 | Non-Recourse U.S. SPV facility | |||||
Financial liabilities: | |||||
Debt | 0 | 0 | |||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 2 | Non-Recourse Canada SPV Facility | |||||
Financial liabilities: | |||||
Debt | 0 | 0 | |||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 2 | Non-Recourse Flexiti SPE Facility | |||||
Financial liabilities: | |||||
Debt | 0 | ||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 3 | |||||
Financial assets: | |||||
Cash and cash equivalents | 0 | 0 | |||
Restricted cash | 0 | 0 | |||
Loans receivable, net | 809,813 | 467,560 | |||
Financial liabilities: | |||||
Liability for losses on CSO lender-owned consumer loans | 7,007 | 7,228 | |||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 3 | 7.50% Senior Secured Notes | Senior Notes | |||||
Financial liabilities: | |||||
Debt | 0 | ||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 3 | 8.25% Senior Secured Notes | Senior Notes | |||||
Financial liabilities: | |||||
Debt | 0 | ||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 3 | Non-Recourse U.S. SPV facility | |||||
Financial liabilities: | |||||
Debt | 49,456 | 49,456 | |||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 3 | Non-Recourse Canada SPV Facility | |||||
Financial liabilities: | |||||
Debt | 97,818 | $ 97,971 | |||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 3 | Non-Recourse Flexiti SPE Facility | |||||
Financial liabilities: | |||||
Debt | $ 259,940 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Thousands | Jun. 09, 2021USD ($)board_seatshares | Sep. 30, 2020USD ($) | Nov. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Sep. 30, 2020USD ($) | Aug. 31, 2020 | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Jul. 31, 2021 | Mar. 10, 2021USD ($) | Dec. 31, 2020USD ($) | Aug. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||
Contingent consideration related to acquisition | $ 24,129 | $ 24,129 | $ 0 | ||||||||||
Purchase of additional securities | $ 11,187 | ||||||||||||
Purchase of additional shares not accounted for as equity method investments | $ 7,200 | ||||||||||||
Income (loss) from equity method investment | $ (1,582) | $ 3,530 | 676 | 2,653 | |||||||||
Gain from equity method investment | $ 135,387 | $ 0 | |||||||||||
Number of seats held | board_seat | 2 | ||||||||||||
Number of seats | board_seat | 7 | ||||||||||||
Katapult | |||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||
Ownership percentage | 19.30% | 42.50% | 19.30% | ||||||||||
Lag period | 2 months | 2 months | |||||||||||
Purchase of investment in Katapult | 11,200 | ||||||||||||
Reclassification of financial asset not carried at fair value to financial asset carried at fair value | 12,500 | ||||||||||||
Purchase of additional securities | $ 4,000 | $ 1,600 | |||||||||||
Cash received from equity method investment | $ 146,900 | ||||||||||||
Sale of stock, number of shares issued in transaction (in shares) | shares | 18,900,000 | ||||||||||||
Trading restriction period | 6 months | ||||||||||||
Gain from equity method investment | $ 135,400 | ||||||||||||
Earn-out warrants received from merger (in shares) | shares | 3,000,000 | ||||||||||||
7.50% Senior Secured Notes | |||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||
Stated interest rate | 7.50% | 7.50% | |||||||||||
8.25% Senior Secured Notes | |||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||
Stated interest rate | 8.25% | 8.25% | |||||||||||
Senior Notes | |||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||
Stated interest rate | 7.50% | ||||||||||||
Senior Notes | 7.50% Senior Secured Notes | |||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||
Stated interest rate | 7.50% | 7.50% | 7.50% | ||||||||||
Senior Notes | 8.25% Senior Secured Notes | |||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||
Stated interest rate | 8.25% | 8.25% | 8.25% | 8.25% | |||||||||
Measurement period adjustments | Fair Value, Measurements, Nonrecurring | |||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||
Loans receivable, net | $ 809,813 | $ 809,813 | $ 467,560 | ||||||||||
Flexiti | |||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||
Contingent consideration measurement period | 2 years | ||||||||||||
Contingent consideration, maximum amount | $ 32,800 | ||||||||||||
Contingent consideration related to acquisition | 24,100 | $ 20,600 | 24,100 | $ 20,600 | |||||||||
Loans receivable, net | $ 82,300 | $ 82,300 |
FAIR VALUE MEASUREMENTS - Inves
FAIR VALUE MEASUREMENTS - Investment in Katapult (Details) - USD ($) $ in Thousands | Jun. 09, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||||
Gain from equity method investment | $ 135,387 | $ 0 | ||||||||
Katapult | ||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||||
Proceeds from (Investment in) Katapult | $ 146,900 | |||||||||
Sale of stock, number of shares issued in transaction (in shares) | 18,900,000 | |||||||||
Gain from equity method investment | $ 135,400 | |||||||||
Equity Method Investment | ||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||||
Beginning balance | $ 16,501 | $ 27,917 | $ 27,371 | $ 23,908 | $ 9,191 | $ 8,450 | $ 10,068 | 27,371 | 10,068 | |
Equity method income (loss) | (1,582) | 1,712 | 546 | 1,893 | 3,530 | 741 | (1,618) | |||
Accounting policy change for certain securities from equity method investment to measurement alternative | 0 | |||||||||
Purchases of common stock warrants and preferred shares | 1,570 | 11,187 | ||||||||
Conversion of investment | (13,128) | |||||||||
Ending balance | 14,919 | 16,501 | 27,917 | 27,371 | 23,908 | 9,191 | 8,450 | 14,919 | 23,908 | |
Equity Method Investment | Fair Value, Measurements, Nonrecurring | ||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||||
Beginning balance | 16,501 | 8,308 | 7,762 | 4,299 | 9,191 | 8,450 | 10,068 | 7,762 | 10,068 | |
Equity method income (loss) | (1,582) | 1,712 | 546 | 1,893 | 3,530 | 741 | (1,618) | |||
Accounting policy change for certain securities from equity method investment to measurement alternative | (12,452) | |||||||||
Purchases of common stock warrants and preferred shares | 1,570 | 4,030 | ||||||||
Conversion of investment | 6,481 | |||||||||
Ending balance | 14,919 | 16,501 | 8,308 | 7,762 | 4,299 | 9,191 | $ 8,450 | 14,919 | 4,299 | |
Equity Method Investment | Fair Value, Measurements, Recurring | ||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||||
Beginning balance | 0 | 19,609 | 19,609 | 19,609 | 0 | 19,609 | ||||
Equity method income (loss) | 0 | 0 | 0 | 0 | 0 | |||||
Accounting policy change for certain securities from equity method investment to measurement alternative | 12,452 | |||||||||
Purchases of common stock warrants and preferred shares | 0 | 7,157 | ||||||||
Conversion of investment | (19,609) | |||||||||
Ending balance | $ 0 | $ 0 | $ 19,609 | $ 19,609 | $ 19,609 | $ 0 | $ 0 | $ 19,609 |
STOCKHOLDERS' EQUITY - Schedule
STOCKHOLDERS' EQUITY - Schedule of Stockholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance, beginning period | $ 266,702 | $ 160,190 | $ 131,905 | $ 92,942 | $ 59,571 | $ 50,513 | $ 131,905 | $ 50,513 |
Net income (loss) from continuing operations | (42,039) | 104,517 | 25,735 | 12,881 | 88,213 | 71,259 | ||
Net income from continuing operations | (42,039) | 12,881 | 21,080 | 36,013 | 88,213 | 69,974 | ||
Net income from discontinued operations | 0 | 0 | 993 | 292 | 0 | 1,285 | ||
Foreign currency translation adjustment | (10,611) | 4,714 | 3,855 | 5,591 | 10,261 | (22,193) | (2,042) | (6,341) |
Dividends | (4,547) | (4,582) | (2,368) | (2,250) | (2,244) | (2,256) | ||
Share based compensation expense | 3,998 | 3,467 | 2,683 | 3,392 | 3,310 | 3,194 | ||
Proceeds from exercise of stock options | 27 | 191 | 48 | 126 | ||||
Repurchase of common stock | (15,940) | (1,752) | (5,509) | |||||
Common stock issued for RSUs vesting, net of shares withheld and withholding paid for employee taxes | (107) | (43) | (1,668) | (3) | (29) | (609) | ||
Balance, ending period | $ 197,483 | $ 266,702 | $ 160,190 | $ 112,553 | $ 92,942 | $ 59,571 | $ 197,483 | $ 112,553 |
Common Stock | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance, beginning period (in shares) | 41,679,541 | 41,623,779 | 41,370,504 | 40,884,545 | 40,779,447 | 41,156,224 | 41,370,504 | 41,156,224 |
Balance, beginning period | $ 9 | $ 9 | $ 9 | $ 9 | $ 9 | $ 9 | $ 9 | $ 9 |
Proceeds from exercise of stock options (in shares) | 7,200 | 43,920 | 15,852 | 42,094 | ||||
Repurchase of common stock (in shares) | (964,566) | (104,487) | (540,762) | |||||
Common stock issued for RSU's vesting, net of shares withheld and withholding paid for employee taxes (in shares) | 14,936 | 116,329 | 237,423 | 568 | 105,098 | 121,891 | ||
Balance, ending period (in shares) | 40,737,111 | 41,679,541 | 41,623,779 | 40,885,113 | 40,884,545 | 40,779,447 | 40,737,111 | 40,885,113 |
Balance, ending period | $ 9 | $ 9 | $ 9 | $ 9 | $ 9 | $ 9 | $ 9 | $ 9 |
Treasury Stock, at cost | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance, beginning period | (79,604) | (77,852) | (77,852) | (77,852) | (77,852) | (72,343) | (77,852) | (72,343) |
Repurchase of common stock | (15,940) | (1,752) | (5,509) | |||||
Balance, ending period | (95,544) | (79,604) | (77,852) | (77,852) | (77,852) | (77,852) | (95,544) | (77,852) |
Paid-in capital | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance, beginning period | 84,490 | 80,875 | 79,812 | 74,079 | 70,798 | 68,087 | 79,812 | 68,087 |
Share based compensation expense | 3,998 | 3,467 | 2,683 | 3,392 | 3,310 | 3,194 | ||
Proceeds from exercise of stock options | 27 | 191 | 48 | 126 | ||||
Common stock issued for RSUs vesting, net of shares withheld and withholding paid for employee taxes | (107) | (43) | (1,668) | (3) | (29) | (609) | ||
Balance, ending period | 88,408 | 84,490 | 80,875 | 77,468 | 74,079 | 70,798 | 88,408 | 77,468 |
Retained Earnings (Deficit) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance, beginning period | 283,370 | 183,435 | 160,068 | 147,301 | 127,472 | 93,423 | 160,068 | 93,423 |
Net income (loss) from continuing operations | (42,039) | 104,517 | 25,735 | |||||
Net income from continuing operations | 12,881 | 21,080 | 36,013 | |||||
Net income from discontinued operations | 993 | 292 | ||||||
Dividends | (4,547) | (4,582) | (2,368) | (2,250) | (2,244) | (2,256) | ||
Balance, ending period | 236,784 | 283,370 | 183,435 | 157,932 | 147,301 | 127,472 | 236,784 | 157,932 |
AOCI | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance, beginning period | (21,563) | (26,277) | (30,132) | (50,595) | (60,856) | (38,663) | (30,132) | (38,663) |
Foreign currency translation adjustment | (10,611) | 4,714 | 3,855 | 5,591 | 10,261 | (22,193) | ||
Balance, ending period | $ (32,174) | $ (21,563) | $ (26,277) | $ (45,004) | $ (50,595) | $ (60,856) | $ (32,174) | $ (45,004) |
STOCKHOLDERS' EQUITY - Schedu_2
STOCKHOLDERS' EQUITY - Schedule of Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 19, 2021 | May 27, 2021 | Mar. 02, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Jul. 28, 2021 | May 03, 2021 | Jan. 29, 2021 |
Equity [Abstract] | ||||||||
Dividend per share (in usd per share) | $ 0.110 | $ 0.110 | $ 0.055 | |||||
Dividends Paid | $ 4,556 | $ 4,580 | $ 2,284 | $ 11,497 | $ 6,750 |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) - $ / shares | Oct. 31, 2021 | Jul. 28, 2021 | May 03, 2021 | Jan. 29, 2021 |
Subsequent Event [Line Items] | ||||
Quarterly cash dividend (in usd per share) | $ 0.110 | $ 0.110 | $ 0.055 | |
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Quarterly cash dividend (in usd per share) | $ 0.11 |
EARNINGS PER SHARE - Summary of
EARNINGS PER SHARE - Summary of Basic Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||||||
Net income from continuing operations | $ (42,039) | $ 12,881 | $ 21,080 | $ 36,013 | $ 88,213 | $ 69,974 | ||
Net income from discontinued operations, net of tax | 0 | 0 | $ 993 | $ 292 | 0 | 1,285 | ||
Net (loss) income | $ (42,039) | $ 104,517 | $ 25,735 | $ 12,881 | $ 88,213 | $ 71,259 | ||
Weight average common shares - basic (in shares) | 41,220 | 40,885 | 41,459 | 40,838 | ||||
Dilutive effect of stock options and restricted stock units (in shares) | 0 | 890 | 1,963 | 822 | ||||
Weighted average common shares - diluted (in shares) | 41,220 | 41,775 | 43,422 | 41,660 | ||||
Basic earnings per share: | ||||||||
Continuing operations (in usd per share) | $ (1.02) | $ 0.32 | $ 2.13 | $ 1.71 | ||||
Discontinued operations (in usd per share) | 0 | 0 | 0 | 0.03 | ||||
Basic (loss) earnings per share (in usd per share) | (1.02) | 0.32 | 2.13 | 1.74 | ||||
Diluted earnings per share: | ||||||||
Continuing operations (in usd per share) | (1.02) | 0.31 | 2.03 | 1.68 | ||||
Discontinued operations (in usd per share) | 0 | 0 | 0 | 0.03 | ||||
Diluted (loss) earnings per share (in usd per share) | $ (1.02) | $ 0.31 | $ 2.03 | $ 1.71 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0.1 | 1.7 | 0.1 | 1.3 |
SEGMENT REPORTING - Narrative (
SEGMENT REPORTING - Narrative (Details) - Sep. 30, 2021 | store | state | province | partner | territory |
U.S. | |||||
Segment Reporting Information [Line Items] | |||||
Number of retail locations | 160 | ||||
Number of states/provinces with online presence | state | 27 | ||||
Canada Direct Lending | |||||
Segment Reporting Information [Line Items] | |||||
Number of retail locations | 201 | ||||
Number of states/provinces with online presence | province | 7 | ||||
Number of states/provinces with retail locations | province | 8 | ||||
Canada POS Lending | |||||
Segment Reporting Information [Line Items] | |||||
Number of retail locations | 7,400 | ||||
Number of merchant partners | partner | 2,350 | ||||
Number of geographical locations | 10 | 2 |
SEGMENT REPORTING - Summary of
SEGMENT REPORTING - Summary of Financial Information by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||||
Consolidated revenue | $ 209,280 | $ 182,003 | $ 593,524 | $ 645,318 | |
Consolidated net revenue | 138,562 | 127,253 | 441,496 | 426,339 | |
Consolidated gross margin | 73,924 | 63,570 | 260,587 | 239,768 | |
Consolidated operating income | (55,414) | 12,059 | 117,454 | 72,157 | |
Consolidated expenditures for long-lived assets | 7,486 | 2,340 | 15,351 | 7,565 | |
Total gross loans receivable | 882,356 | 882,356 | $ 553,722 | ||
U.S. | |||||
Segment Reporting Information [Line Items] | |||||
Consolidated revenue | 131,674 | 132,848 | 386,960 | 491,936 | |
Consolidated net revenue | 83,244 | 89,363 | 278,852 | 320,880 | |
Consolidated gross margin | 39,228 | 43,384 | 157,614 | 187,784 | |
Consolidated operating income | (62,099) | (696) | 75,909 | 44,587 | |
Consolidated expenditures for long-lived assets | 4,402 | 2,273 | 9,226 | 6,801 | |
Total gross loans receivable | 189,183 | 189,183 | 223,451 | ||
Canada Direct Lending | |||||
Segment Reporting Information [Line Items] | |||||
Consolidated revenue | 66,190 | 49,155 | 186,510 | 153,382 | |
Consolidated net revenue | 52,187 | 37,890 | 154,717 | 105,459 | |
Consolidated gross margin | 32,188 | 20,186 | 96,271 | 51,984 | |
Consolidated operating income | 23,744 | 12,755 | 71,334 | 27,570 | |
Consolidated expenditures for long-lived assets | 481 | 67 | 991 | 764 | |
Total gross loans receivable | 390,824 | 390,824 | 330,271 | ||
Canada POS Lending | |||||
Segment Reporting Information [Line Items] | |||||
Consolidated revenue | 11,416 | 0 | 20,054 | 0 | |
Consolidated net revenue | 3,131 | 0 | 7,927 | 0 | |
Consolidated gross margin | 2,508 | 0 | 6,702 | 0 | |
Consolidated operating income | (17,059) | 0 | (29,789) | 0 | |
Consolidated expenditures for long-lived assets | 2,603 | $ 0 | 5,134 | $ 0 | |
Total gross loans receivable | $ 302,349 | $ 302,349 | $ 0 |
SEGMENT REPORTING - Summary o_2
SEGMENT REPORTING - Summary of Long-lived Assets by Geographical Region (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net long-lived assets | $ 48,001 | $ 59,749 |
U.S. | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net long-lived assets | 26,333 | 36,258 |
Canada Direct Lending | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net long-lived assets | 21,076 | 23,491 |
Canada POS Lending | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net long-lived assets | $ 592 | $ 0 |
COMMITMENTS AND CONTENGENCIES (
COMMITMENTS AND CONTENGENCIES (Details) | Dec. 18, 2020USD ($) | Aug. 31, 2018USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2021USD ($) | Jul. 31, 2020lawsuit |
Loss Contingencies [Line Items] | |||||
Litigation settlement amount | $ 9,000,000 | ||||
Insurance retention | $ 2,500,000 | ||||
Litigation expense incurred | $ 0 | $ 0 | |||
Shareholder Derivative Lawsuits | |||||
Loss Contingencies [Line Items] | |||||
Number of lawsuits | lawsuit | 3 | ||||
Shareholder Derivative Lawsuits With FFL Defendants | |||||
Loss Contingencies [Line Items] | |||||
Number of lawsuits | lawsuit | 2 | ||||
Delisle V. Speedy Cash | |||||
Loss Contingencies [Line Items] | |||||
Loan threshold | $ 2,500 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | Sep. 30, 2021option |
Leases [Abstract] | |
Operating lease original term of contract | 5 years |
Number of renewal terms | 2 |
Operating lease renewal term | 5 years |
LEASES - Summary of Operating L
LEASES - Summary of Operating Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Lessee, Lease, Description [Line Items] | ||||
Operating lease cost | $ 8,594 | $ 8,573 | $ 26,253 | $ 25,485 |
Operating cash flow - Operating leases | 26,556 | 25,329 | ||
New ROU assets - Operating leases | $ 9,893 | $ 10,885 | ||
Weighted average remaining lease term - Operating leases | 5 years 3 months 18 days | 6 years | 5 years 3 months 18 days | 6 years |
Weighted average discount rate - Operating leases | 9.10% | 10.10% | 9.10% | 10.10% |
Third-Party | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease cost | $ 8,043 | $ 8,567 | $ 24,604 | $ 22,947 |
Related-Party | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease cost | $ 551 | $ 6 | $ 1,649 | $ 2,538 |
LEASES - Schedule of Future Min
LEASES - Schedule of Future Minimum Lease Payments, ASC 842 (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Lessee, Lease, Description [Line Items] | |
Remainder of 2021 | $ 8,896 |
2022 | 33,887 |
2023 | 26,753 |
2024 | 20,768 |
2025 | 14,910 |
2026 | 10,828 |
Thereafter | 22,347 |
Total | 138,389 |
Less: Imputed interest | (29,734) |
Operating lease liabilities | 108,655 |
Third-Party | |
Lessee, Lease, Description [Line Items] | |
Remainder of 2021 | 8,250 |
2022 | 31,419 |
2023 | 26,202 |
2024 | 20,594 |
2025 | 14,856 |
2026 | 10,778 |
Thereafter | 22,347 |
Total | 134,446 |
Less: Imputed interest | (29,394) |
Operating lease liabilities | 105,052 |
Related-Party | |
Lessee, Lease, Description [Line Items] | |
Remainder of 2021 | 646 |
2022 | 2,468 |
2023 | 551 |
2024 | 174 |
2025 | 54 |
2026 | 50 |
Thereafter | 0 |
Total | 3,943 |
Less: Imputed interest | (340) |
Operating lease liabilities | $ 3,603 |
GOODWILL - Schedule of Goodwill
GOODWILL - Schedule of Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 136,091 |
Acquisition | 44,901 |
Foreign currency translation | (539) |
Measurement period adjustment | (4,480) |
Goodwill, ending balance | 175,973 |
U.S. | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 105,922 |
Acquisition | 0 |
Foreign currency translation | 0 |
Measurement period adjustment | 0 |
Goodwill, ending balance | 105,922 |
Canada Direct Lending | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 30,169 |
Acquisition | 0 |
Foreign currency translation | (48) |
Measurement period adjustment | 0 |
Goodwill, ending balance | 30,121 |
Canada POS Lending | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 0 |
Acquisition | 44,901 |
Foreign currency translation | (491) |
Measurement period adjustment | (4,480) |
Goodwill, ending balance | $ 39,930 |
GOODWILL - Narrative (Details)
GOODWILL - Narrative (Details) - USD ($) | Mar. 10, 2021 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | |||||
Loss on impairment of goodwill | $ 0 | $ 0 | |||
Acquisition | 44,901,000 | ||||
Measurement period adjustment | (4,480,000) | ||||
Goodwill | 175,973,000 | $ 175,973,000 | 175,973,000 | $ 136,091,000 | |
Canada POS Lending | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Acquisition | 44,901,000 | ||||
Measurement period adjustment | (4,480,000) | ||||
Goodwill | 39,930,000 | 39,930,000 | 39,930,000 | $ 0 | |
Flexiti | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Acquisition | $ 44,900,000 | ||||
Measurement period adjustment | (4,480,000) | (4,500,000) | |||
Goodwill | $ 44,901,000 | $ 40,421,000 | $ 40,421,000 | $ 40,421,000 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) - USD ($) $ in Thousands | Mar. 10, 2021 | Jan. 03, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||||||||
Contingent consideration related to acquisition | $ 24,129 | $ 24,129 | $ 24,129 | $ 0 | |||||
Consolidated net revenue | 138,562 | $ 127,253 | 441,496 | $ 426,339 | |||||
Operating expense | (89,132) | $ (51,511) | (102,927) | (167,611) | |||||
Goodwill increase (decrease) | (4,480) | ||||||||
Goodwill | 175,973 | 175,973 | 175,973 | $ 136,091 | |||||
Flexiti | |||||||||
Business Acquisition [Line Items] | |||||||||
Equity interests acquired | 100.00% | ||||||||
Payments to acquire businesses, gross | $ 86,500 | ||||||||
Debt costs in conjunction with the acquisition | 6,300 | ||||||||
Contingent consideration related to acquisition | 20,600 | 24,100 | 24,100 | 24,100 | $ 20,600 | ||||
Consolidated net revenue | 3,100 | 7,900 | |||||||
Operating expense | 19,600 | 36,500 | |||||||
Goodwill increase (decrease) | (4,480) | (4,500) | |||||||
Goodwill | 44,901 | 40,421 | 40,421 | 40,421 | |||||
Business combination, consideration transferred, equity interests issued and issuable | 8,100 | ||||||||
Business combination, consideration transferred, equity interests issued relates to RSU contingent consideration | $ 4,000 | ||||||||
Business acquisition, service period term | 2 years | ||||||||
Business acquisition, incurred costs related to this acquisition | $ 3,400 | $ 3,400 | 3,400 | ||||||
Payments to acquire businesses, net of cash acquired | 91,203 | 0 | |||||||
Flexiti | Minimum | |||||||||
Business Acquisition [Line Items] | |||||||||
Contingent consideration related to acquisition | $ 0 | ||||||||
Flexiti | Maximum | |||||||||
Business Acquisition [Line Items] | |||||||||
Contingent consideration related to acquisition | $ 32,800 | ||||||||
Ad Astra | |||||||||
Business Acquisition [Line Items] | |||||||||
Equity interests acquired | 100.00% | ||||||||
Operating expense | 2,600 | ||||||||
Goodwill | $ 14,791 | ||||||||
Payments to acquire businesses, net of cash acquired | 14,400 | $ 0 | $ 14,418 | ||||||
Goodwill, estimated amount tax-deductible | $ 15,400 |
ACQUISITIONS - Schedule of Reco
ACQUISITIONS - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed - Flexiti (Details) - USD ($) $ in Thousands | Mar. 10, 2021 | Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Liabilities | ||||
Goodwill | $ 175,973 | $ 175,973 | $ 136,091 | |
Goodwill | (4,480) | |||
Flexiti | ||||
ASSETS | ||||
Cash and cash equivalents | $ 1,267 | 1,267 | 1,267 | |
Gross loans receivable | 196,138 | 196,138 | 196,138 | |
Prepaid expenses and other | 687 | 687 | 687 | |
Property and equipment | 460 | 460 | 460 | |
Right-of-use assets | 616 | 616 | 616 | |
Intangibles | 50,876 | 54,448 | 54,448 | |
Intangibles | 3,572 | |||
Deferred tax assets | 2,741 | 3,649 | 3,649 | |
Deferred tax assets | 908 | |||
Total assets | 252,785 | 257,265 | 257,265 | |
Total assets | 4,480 | |||
Liabilities | ||||
Accounts payable and accrued liabilities | 9,356 | 9,356 | 9,356 | |
Credit facilities | 174,367 | 174,367 | 174,367 | |
Lease liabilities | 616 | 616 | 616 | |
Total liabilities | 184,339 | 184,339 | 184,339 | |
Net assets acquired | 68,446 | 72,926 | 72,926 | |
Net assets acquired | 4,480 | |||
Total consideration paid | 113,347 | |||
Goodwill | 44,901 | 40,421 | 40,421 | |
Goodwill | $ (4,480) | $ (4,500) | ||
Gross contractual loans receivable | 208,600 | |||
Estimate of gross contractual loans that will not be collected | $ 12,500 |
ACQUISITIONS - Components of Id
ACQUISITIONS - Components of Identifiable Intangible Assets (Details) - Flexiti - USD ($) $ in Thousands | 7 Months Ended | |
Sep. 30, 2021 | Mar. 10, 2021 | |
Business Acquisition [Line Items] | ||
Intangible assets | $ 54,448 | $ 50,876 |
Developed technology | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 31,827 | |
Useful Life | 5 years | |
Merchant relationships | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 19,684 | |
Useful Life | 5 years | |
Customer relationships | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 2,937 | |
Useful Life | 3 years |
ACQUISITIONS - Schedule of Re_2
ACQUISITIONS - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed - Ad Astra (Details) - USD ($) $ in Thousands | Jan. 03, 2020 | Sep. 30, 2021 | Dec. 31, 2020 |
ASSETS | |||
Goodwill | $ 175,973 | $ 136,091 | |
Ad Astra | |||
ASSETS | |||
Cash and cash equivalents | $ 3,360 | ||
Accounts receivable | 465 | ||
Property and equipment | 358 | ||
Intangible assets | 1,101 | ||
Goodwill | 14,791 | ||
Operating lease asset | 235 | ||
Total assets | 20,310 | ||
Liabilities | |||
Accounts payable and accrued liabilities | 2,264 | ||
Operating lease liabilities | 235 | ||
Total liabilities | 2,499 | ||
Total cash consideration transferred | $ 17,811 |
SHARE REPURCHASE PROGRAM - Narr
SHARE REPURCHASE PROGRAM - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | May 07, 2021 | Dec. 31, 2020 |
Repurchase Program, 2021 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total authorized repurchase amount for the period presented | $ 48,248 | $ 50,000 | $ 50,000 |
SHARE REPURCHASE PROGRAM - Sche
SHARE REPURCHASE PROGRAM - Schedule of Share Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2020 | Sep. 30, 2021 | May 07, 2021 | Dec. 31, 2020 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Total value of shares repurchased | $ 15,940 | $ 1,752 | $ 5,509 | |||
Repurchase Program, 2021 | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Total number of shares repurchased (in shares) | 964,566 | 1,069,053 | ||||
Average price paid per share (in usd per share) | $ 16.53 | $ 16.55 | ||||
Total value of shares repurchased | $ 15,940 | $ 17,692 | ||||
Total authorized repurchase amount for the period presented | $ 48,248 | $ 50,000 | $ 50,000 | |||
Total remaining authorized repurchase amount | $ 32,308 | $ 32,308 |
STORE CLOSURES - Narrative (Det
STORE CLOSURES - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021USD ($)store | Jun. 30, 2021store | Sep. 30, 2021USD ($)store | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ | $ 5,651 | $ 11,414 | |
US | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of stores closed | 30 | 19 | 49 |
Illinois | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of stores closed | 8 | ||
Oregon | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of stores closed | 2 | ||
Colorado | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of stores closed | 2 | ||
Washington | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of stores closed | 1 | ||
Texas | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of stores closed | 31 | ||
California | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of stores closed | 2 | ||
Louisiana | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of stores closed | 1 | ||
Nevada | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of stores closed | 1 | ||
Tennessee | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of stores closed | 1 |
STORE CLOSURES - Schedule of Re
STORE CLOSURES - Schedule of Restructuring Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Store closure costs | ||
Severance and employee costs | $ 2,714 | $ 3,655 |
Lease termination costs | 453 | 1,018 |
Net accelerated depreciation and write-off of ROU assets and lease liabilities | 2,484 | 6,741 |
Total store closure costs | 5,651 | 11,414 |
Corporate, district and other expenses | ||
Store closure costs | ||
Total store closure costs | 700 | 5,700 |
Cost of providing services | ||
Store closure costs | ||
Total store closure costs | $ 4,900 | $ 5,700 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Oct. 29, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2020 | Sep. 30, 2021 | Oct. 31, 2021 | Jul. 28, 2021 | May 03, 2021 | Jan. 29, 2021 | |
Subsequent Event [Line Items] | |||||||||
Total value of shares repurchased | $ 15,940 | $ 1,752 | $ 5,509 | ||||||
Quarterly cash dividend (in usd per share) | $ 0.110 | $ 0.110 | $ 0.055 | ||||||
Repurchase Program, 2021 | |||||||||
Subsequent Event [Line Items] | |||||||||
Total number of shares repurchased (in shares) | 964,566 | 1,069,053 | |||||||
Total value of shares repurchased | $ 15,940 | $ 17,692 | |||||||
Average price paid per share (in usd per share) | $ 16.53 | $ 16.55 | |||||||
Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Quarterly cash dividend (in usd per share) | $ 0.11 | ||||||||
Subsequent Event | Repurchase Program, 2021 | |||||||||
Subsequent Event [Line Items] | |||||||||
Total number of shares repurchased (in shares) | 286,629 | ||||||||
Total value of shares repurchased | $ 5,300 | ||||||||
Average price paid per share (in usd per share) | $ 18.33 |