Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 03, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 2022 | ||
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 | 200 W Hubbard Street | ||
Entity Address, Address Line Two | 8th Floor | ||
Entity Address, City or Town | Chicago | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60654 | ||
City Area Code | 312 | ||
Local Phone Number | 470-2000 | ||
Title of 12(b) Security | Common stock, $0.001 par value per share | ||
Trading Symbol | CURO | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 130,153,179 | ||
Entity Common Stock, Shares Outstanding | 40,835,943 | ||
Documents Incorporated by Reference | Certain information required by Part III of this Annual Report on Form 10-K is incorporated herein by reference to the Proxy Statement for the registrant’s 2023 Annual Meeting of Stockholders, which is expected to be filed pursuant to Regulation 14A within 120 days after the end of the registrant’s fiscal year ended December 31, 2022. | ||
Entity Central Index Key | 0001711291 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY |
AUDIT INFORMATION
AUDIT INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Auditor Information [Abstract] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Chicago, IL |
Auditor Firm ID | 34 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 73,932 | $ 63,179 |
Restricted cash (includes restricted cash of consolidated VIEs of $52,277 and $57,155 as of December 31, 2022 and December 31, 2021, respectively) | 91,745 | 98,896 |
Gross loans receivable (includes loans of consolidated VIEs of $1,964,275 and $1,294,706 as of December 31, 2022 and December 31, 2021, respectively) | 2,087,833 | 1,548,318 |
Less: Allowance for loan losses (includes allowance for loan losses of consolidated VIEs of $108,451 and $66,618 as of December 31, 2022 and December 31, 2021, respectively) | (122,028) | (87,560) |
Loans receivable, net | 1,965,805 | 1,460,758 |
Income taxes receivable | 21,918 | 31,774 |
Prepaid expenses and other (includes prepaid expenses and other of consolidated VIEs of $12,908 and $— as of December 31, 2022 and December 31, 2021, respectively) | 53,057 | 42,038 |
Property and equipment, net | 31,957 | 54,635 |
Investment in Katapult | 23,915 | 27,900 |
Right of use asset - operating leases | 61,197 | 116,300 |
Deferred tax assets | 49,893 | 15,639 |
Goodwill | 276,269 | 429,792 |
Intangibles, net | 123,677 | 109,930 |
Other assets | 15,828 | 9,755 |
Total Assets | 2,789,193 | 2,460,596 |
Liabilities | ||
Accounts payable and accrued liabilities (includes accounts payable and accrued liabilities of consolidated VIEs of $13,571 and $9,886 as of December 31, 2022 and December 31, 2021, respectively) | 73,827 | 121,434 |
Deferred revenue | 32,259 | 21,649 |
Lease liability - operating leases | 62,847 | 122,431 |
Contingent consideration related to acquisition | 16,884 | 26,508 |
Income taxes payable | 0 | 680 |
Accrued interest (includes accrued interest of consolidated VIEs of $7,023 and $3,279 as of December 31, 2022 and December 31, 2021, respectively) | 38,460 | 34,974 |
Liability for losses on CSO lender-owned consumer loans | 0 | 6,908 |
Debt (includes debt and issuance costs of consolidated VIEs of $1,609,427 and $20,047 as of December 31, 2022 and $979,500 and $14,428 as of December 31, 2021, respectively) | 2,607,314 | 1,945,793 |
Other long-term liabilities | 11,736 | 13,845 |
Deferred tax liabilities | 0 | 6,044 |
Total Liabilities | 2,843,327 | 2,300,266 |
Commitments and contingencies (Note 7) | ||
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; 50,216,165 and 49,684,080 shares issued; and 40,518,052 and 40,810,444 shares outstanding at the respective period ends | 23 | 23 |
Treasury stock, at cost - 9,698,113 and 8,873,636 shares at the respective period ends | (136,832) | (124,302) |
Paid-in capital | 124,483 | 113,520 |
Retained earnings | 4,268 | 203,467 |
Accumulated other comprehensive loss | (46,076) | (32,378) |
Total Stockholders' (Deficit) Equity | (54,134) | 160,330 |
Total Liabilities and Stockholders' (Deficit) Equity | $ 2,789,193 | $ 2,460,596 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Restricted cash | $ 91,745 | $ 98,896 |
Gross loans receivable | 2,087,833 | 1,548,318 |
Allowance for loan losses | 122,028 | 87,560 |
Prepaid expenses and other | 53,057 | 42,038 |
Accounts payable and accrued liabilities | $ 73,827 | $ 121,434 |
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) | 50,216,165 | 49,684,080 |
Class A common stock, outstanding (in shares) | 40,518,052 | 40,810,444 |
Treasury stock (in shares) | 9,698,113 | 8,873,636 |
Variable Interest Entity | ||
Restricted cash | $ 52,277 | $ 57,155 |
Gross loans receivable | 1,964,275 | 1,294,706 |
Allowance for loan losses | 108,451 | 66,618 |
Prepaid expenses and other | 12,908 | 0 |
Accounts payable and accrued liabilities | 13,571 | 9,886 |
Accrued interest | 7,023 | 3,279 |
Debt | 1,609,427 | 979,500 |
Issuance costs | $ 20,047 | $ 14,428 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | |||
Total revenue | $ 1,025,918 | $ 817,843 | $ 847,396 |
Provision for losses | 400,325 | 245,668 | 288,811 |
Net revenue | 625,593 | 572,175 | 558,585 |
Operating Expenses | |||
Salaries and benefits | 281,636 | 237,109 | 196,817 |
Occupancy | 59,485 | 55,559 | 57,271 |
Advertising | 32,143 | 38,762 | 44,552 |
Direct operations | 64,128 | 60,056 | 46,893 |
Depreciation and amortization | 36,322 | 26,955 | 17,498 |
Other operating expense | 82,811 | 68,473 | 47,048 |
Total operating expenses | 556,525 | 486,914 | 410,079 |
Other expense (income) | |||
Interest expense | 185,661 | 97,334 | 72,709 |
Loss (income) from equity method investment | 3,985 | (3,658) | (4,546) |
Gain from equity method investment | 0 | (135,387) | 0 |
Goodwill impairment | 145,241 | 0 | 0 |
Loss on extinguishment of debt | 4,391 | 40,206 | 0 |
Gain on change in fair value of contingent consideration | (7,605) | 6,209 | 0 |
Gain on sale of business | (68,443) | 0 | 0 |
Total other expense (income) | 263,230 | 4,704 | 68,163 |
(Loss) income from continuing operations before income taxes | (194,162) | 80,557 | 80,343 |
(Benefit) provision for income taxes | (8,678) | 21,223 | 5,895 |
Net (loss) income from continuing operations | (185,484) | 59,334 | 74,448 |
Income from discontinued operations, before income taxes | 0 | 0 | 1,714 |
Income tax expense related to disposition | 0 | 0 | 429 |
Net income from discontinued operations | 0 | 0 | 1,285 |
Net (loss) income | $ (185,484) | $ 59,334 | $ 75,733 |
Basic (loss) earnings per share: | |||
Basic earnings per share, continuing operations (in usd per share) | $ (4.59) | $ 1.44 | $ 1.82 |
Basic earnings per share, discontinued operations (in usd per share) | 0 | 0 | 0.03 |
Basic earnings per share (in usd per share) | (4.59) | 1.44 | 1.85 |
Diluted (loss) earnings per share: | |||
Diluted earnings per share, continuing operations (in usd per share) | (4.59) | 1.38 | 1.77 |
Diluted earnings per share, discontinued operations (in usd per share) | 0 | 0 | 0.03 |
Diluted earnings per share (in usd per share) | $ (4.59) | $ 1.38 | $ 1.8 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 40,428 | 41,155 | 40,886 |
Diluted (in shares) | 40,428 | 43,143 | 42,091 |
Interest and fees revenue | |||
Revenue | |||
Total revenue | $ 905,407 | $ 743,735 | $ 788,188 |
Insurance premiums and commissions | |||
Revenue | |||
Total revenue | 88,490 | 49,411 | 35,553 |
Other revenue | |||
Revenue | |||
Total revenue | $ 32,021 | $ 24,697 | $ 23,655 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ (185,484) | $ 59,334 | $ 75,733 |
Other comprehensive (loss) income, net of tax: | |||
Change in derivative instruments designated as cash flow hedges, net of tax | 5,333 | 0 | 0 |
Foreign currency translation adjustment, net of tax | (19,031) | (2,246) | 8,531 |
Other comprehensive (loss) income, net of tax | (13,698) | (2,246) | 8,531 |
Comprehensive (loss) income | $ (199,182) | $ 57,088 | $ 84,264 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock, at cost | Paid-in capital | Retained Earnings (Deficit) | AOCI | [1] | |
Balance, beginning period (in shares) at Dec. 31, 2019 | 41,156,224 | |||||||
Balance, beginning period at Dec. 31, 2019 | $ 50,513 | $ 9 | $ (72,343) | $ 68,087 | $ 93,423 | $ (38,663) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 75,733 | 75,733 | ||||||
Foreign currency translation adjustment and other | 8,531 | 8,531 | ||||||
Other comprehensive loss, net of tax | 8,531 | |||||||
Dividends | (9,088) | (9,088) | ||||||
Share-based compensation | $ 12,910 | 12,910 | ||||||
Proceeds from exercise of stock options (in shares) | 274,510 | 274,510 | ||||||
Proceeds from exercise of stock options | $ 765 | 765 | ||||||
Repurchase of common stock (in shares) | (540,762) | |||||||
Repurchase of common stock | (5,509) | (5,509) | ||||||
Net settlement of share-based awards (in shares) | 480,532 | |||||||
Net settlement of share-based awards | (1,950) | (1,950) | ||||||
Balance, ending period at Dec. 31, 2020 | 131,905 | $ 9 | (77,852) | 79,812 | 160,068 | (30,132) | ||
Balance, ending period (in shares) at Dec. 31, 2020 | 41,370,504 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 59,334 | 59,334 | ||||||
Foreign currency translation adjustment and other | (2,246) | (2,246) | ||||||
Other comprehensive loss, net of tax | (2,246) | |||||||
Dividends | (15,935) | (15,935) | ||||||
Common stock issued for acquisition of Heights Finance (in shares) | 1,446,257 | |||||||
Common stock issued for acquisition of Heights Finance | 24,369 | $ 14 | 24,355 | |||||
Share-based compensation | $ 13,976 | 13,976 | ||||||
Proceeds from exercise of stock options (in shares) | 615,024 | 66,972 | ||||||
Proceeds from exercise of stock options | $ 272 | 272 | ||||||
Repurchase of common stock (in shares) | [2] | (2,718,333) | ||||||
Repurchase of common stock | [2] | (46,450) | (46,450) | |||||
Net settlement of share-based awards (in shares) | 645,044 | |||||||
Net settlement of share-based awards | (4,895) | (4,895) | ||||||
Balance, ending period at Dec. 31, 2021 | 160,330 | $ 23 | (124,302) | 113,520 | 203,467 | (32,378) | ||
Balance, ending period (in shares) at Dec. 31, 2021 | 40,810,444 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | (185,484) | (185,484) | ||||||
Foreign currency translation adjustment and other | (19,031) | |||||||
Other comprehensive loss, net of tax | (13,698) | (13,698) | ||||||
Dividends | (13,715) | (13,715) | ||||||
Share-based compensation | $ 13,957 | 13,957 | ||||||
Proceeds from exercise of stock options (in shares) | 0 | |||||||
Repurchase of common stock (in shares) | (824,477) | |||||||
Repurchase of common stock | $ (12,530) | (12,530) | ||||||
Common stock issued for RSU's vesting, net of shares withheld and withholding paid for employee taxes (in shares) | 532,085 | |||||||
Common stock issued for RSUs vesting, net of shares withheld and withholding paid for employee taxes | (2,994) | (2,994) | ||||||
Balance, ending period at Dec. 31, 2022 | $ (54,134) | $ 23 | $ (136,832) | $ 124,483 | $ 4,268 | $ (46,076) | ||
Balance, ending period (in shares) at Dec. 31, 2022 | 40,518,052 | |||||||
[1] (1) Accumulated other comprehensive income (loss) (2) Includes the repurchase of 500,000 shares of common stock from a related party for $18.10 per share. See Note 23, "Share Repurchase Program" for additional information. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - Affiliated Entity - Share Repurchase Agreement with Faulkner 2017 Dynasty Trust - $ / shares | 1 Months Ended | 12 Months Ended |
Nov. 30, 2021 | Dec. 31, 2021 | |
Repurchase of common stock from a related party (in shares) | 500,000 | 500,000 |
Repurchase of common stock from a related party (in usd per share) | $ 18.10 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | |||
Net (loss) income | $ (185,484) | $ 59,334 | $ 74,448 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 36,322 | 26,955 | 17,498 |
Provision for losses | 400,325 | 245,668 | 288,811 |
Amortization of debt issuance costs and bond discount | 11,315 | 6,871 | 3,935 |
Loss on extinguishment of debt | 4,391 | 40,206 | 0 |
Deferred income tax benefit | (38,254) | (18,297) | 11,691 |
Gain on sale of business | (68,443) | 0 | 0 |
Loss on disposal of property and equipment | 4,420 | 7,054 | 150 |
Loss from equity method investment | 3,985 | (3,658) | (4,546) |
Impairment loss (gain) from equity method investment | 0 | (135,387) | 0 |
Change in fair value of contingent consideration | (7,605) | 6,209 | 0 |
Share-based compensation | 13,957 | 13,976 | 12,910 |
Goodwill impairment | 145,241 | 0 | 0 |
Changes in operating assets and liabilities: | |||
Accrued interest on loans receivable | (37,257) | 8,751 | 23,714 |
Prepaid expenses and other assets | 15,003 | (6,053) | 8,058 |
Accounts payable and accrued liabilities | (46,624) | 43,832 | (11,876) |
Deferred revenue | 17,765 | 16,581 | (4,769) |
Income taxes payable | (9,088) | 678 | 0 |
Income taxes receivable | 17,892 | 3,829 | (20,603) |
Accrued interest | 3,624 | 13,069 | 264 |
Other long-term liabilities | 3,122 | (6,445) | 3,820 |
Net cash provided by continuing operating activities | 284,607 | 323,173 | 403,505 |
Net cash provided by (used in) discontinued operating activities | 0 | 0 | 1,714 |
Net cash provided by operating activities | 284,607 | 323,173 | 405,219 |
Cash flows from investing activities | |||
Purchase of property, equipment and software | (45,821) | (23,648) | (10,920) |
Loans receivable originated or acquired | (2,554,947) | (1,517,275) | (1,296,398) |
Loans receivable repaid | 1,664,851 | 928,302 | 1,079,437 |
Proceeds from Katapult | 136,879 | ||
Proceeds from Katapult | (12,757) | ||
Divestiture of Legacy U.S. Direct Lending Business, net of cash provided | 288,980 | 0 | 0 |
Net cash used in investing activities | (777,949) | (923,488) | (255,056) |
Cash flows from financing activities | |||
Debt issuance costs paid | (19,252) | (26,387) | (6,992) |
Payments of call premiums from early debt extinguishments | 0 | (31,250) | 0 |
Proceeds from exercise of stock options | 0 | 272 | 765 |
Payments to net share settle equity awards | (2,994) | (4,895) | (1,950) |
Repurchase of common stock | (12,530) | (45,448) | (5,908) |
Dividends paid to stockholders | (13,715) | (15,935) | (9,088) |
Net cash provided by financing activities | 501,062 | 491,291 | 7,329 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (4,118) | 2,991 | 595 |
Net increase in cash, cash equivalents and restricted cash | 3,602 | (106,033) | 158,087 |
Cash, cash equivalents and restricted cash at beginning of period | 162,075 | 268,108 | 110,021 |
Cash, cash equivalents and restricted cash at end of period | 165,677 | 162,075 | 268,108 |
Supplemental Cash Flow Elements [Abstract] | |||
Cash and cash equivalents | 73,932 | 63,179 | 213,343 |
Restricted cash | 91,745 | 98,896 | 54,765 |
Total cash, cash equivalents and restricted cash used in the Statement of Cash Flows | 165,677 | 162,075 | 268,108 |
Cash paid for: | |||
Interest | 162,365 | 81,536 | 69,212 |
Income taxes, net of refunds | 15,646 | 34,878 | 15,841 |
Non-cash investing activities: | |||
Property and equipment accrued in accounts payable | 444 | 883 | 861 |
SPV and SPE Facilities | |||
Cash flows from financing activities | |||
Proceeds from credit facilities | 1,724,600 | 549,511 | 73,037 |
Payments on credit facilities | (1,175,047) | (244,577) | (42,535) |
Senior Revolver | |||
Cash flows from financing activities | |||
Proceeds from credit facilities | 169,496 | 68,108 | 69,947 |
Payments on credit facilities | (169,496) | (68,108) | (69,947) |
Senior Secured Notes Due 2025 | |||
Cash flows from financing activities | |||
Extinguishment of 8.25% Senior Secured Notes | 0 | (690,000) | 0 |
Senior Secured Notes Due 2028 | |||
Cash flows from financing activities | |||
Proceeds from issuance of 7.50% Senior Secured Notes | 0 | 1,000,000 | 0 |
Ad Astra | |||
Cash flows from investing activities | |||
Payments to acquire businesses, net of cash acquired | 0 | 0 | (14,418) |
Flexiti | |||
Cash flows from investing activities | |||
Payments to acquire businesses, net of cash acquired | (91,203) | 0 | |
Heights Finance | |||
Cash flows from investing activities | |||
Payments to acquire businesses, net of cash acquired | 0 | (356,543) | 0 |
First Heritage SPV | |||
Cash flows from investing activities | |||
Payments to acquire businesses, net of cash acquired | $ (131,012) | $ 0 | $ 0 |
CONSOLIDATED STATEMENT OF CAS_2
CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jul. 31, 2021 | Dec. 31, 2020 | Aug. 31, 2018 |
Restricted cash | $ 91,745 | $ 98,896 | $ 54,765 | |||
Senior Secured Notes Due 2025 | Senior Notes | ||||||
Stated interest rate (as percent) | 8.25% | 8.25% | 8.25% | |||
Senior Secured Notes Due 2028 | Senior Notes | ||||||
Stated interest rate (as percent) | 7.50% | 7.50% | 7.50% | 7.50% | ||
Variable Interest Entity | ||||||
Restricted cash | $ 52,277 | $ 57,155 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS | NOTE 1 – 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 full-spectrum consumer credit lender serving U.S. and Canadian customers for over 25 years. Our roots in the consumer finance market run deep. We have worked diligently to provide customers a variety of convenient, easily accessible financial services. Our decades of alternative data power a hard-to-replicate underwriting and scoring engine, mitigating risk across the full spectrum of credit products. In the U.S., CURO operates under several principal brands, including "Covington Credit," "Heights Finance," "Quick Credit," "Southern Finance" and "First Heritage Credit." Until July 2022, CURO also operated under "Speedy Cash," "Rapid Cash" and "Avio Credit." As of December 31, 2022, our store network consisted of 496 U.S. retail locations across 13 states. In Canada, we operate under “Cash Money” and “LendDirect” direct lending brands and the "Flexiti" point-of-sale brand. As of December 31, 2022, we operated our direct lending and online services in eight Canadian provinces and one Canadian territory. Our point-of-sale operations are available at over 8,400 retail locations and over 3,500 merchant partners across 10 provinces and two territories. Following the acquisitions in 2022 and 2021, the Company reports Flexiti operations as the "Canada POS Lending" segment and First Heritage and Heights Finance operations within the U.S. Direct Lending segment throughout this 2022 Form 10-K. Refer to Note 1 3 , "Segment Reporting " for further information. The Company has prepared the accompanying audited Consolidated Financial Statements in accordance with U.S. GAAP. The Company will continue to take advantage of the scaled disclosure requirements permitted by the SEC as a Smaller Reporting Company (SRC) for the periods presented. SRC status is determined on an annual basis as of the last business day of the most recently completed second fiscal quarter. Under these rules, the Company met the definition of an SRC as of June 30, 2022 and has elected to continue to report as an SRC. The Company will reevaluate its status as of June 30, 2023. Revised Revenue Presentation Beginning in the first quarter of 2022, the Company started reporting "Interest and fees revenue," "Insurance premiums and commissions" and "Other revenue" in place of the previously reported "Revenue" line item in the Consolidated Statements of Operations. Prior period amounts have been reclassified to conform with current period presentation. Revised Operating Expense Presentation Beginning in the fourth quarter of 2021, the Company revised its presentation of operating expenses in the Consolidated Statement of Operations. Where applicable, prior period amounts have been reclassified to conform to the current period presentation. These changes had no impact on the Company's previously reported consolidated results of operations or financial position. U.K. Segment Financial Information Recast for Discontinued Operations On February 25, 2019, the Company placed its U.K. segment into administration, which resulted in treatment of the U.K. segment as discontinued operations for all periods presented. Throughout this report, financial information for all periods are presented on a continuing operations basis, excluding the results and positions of the U.K. segment. See Note 22, "Discontinued Operations" for additional information. Principles of Consolidation The Consolidated Financial Statements reflect the accounts of CURO and its direct and indirect subsidiaries, including the divestiture of the Legacy U.S.Direct Lending Business on July 8, 2022 and the acquisition of First Heritage on July 13, 2022. Refer to Note 14, "Acquisitions and Divestiture" for further disclosures related to these acquisitions. Intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of the 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 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 First Heritage, Heights Finance and Flexiti acquisitions. Actual results may differ from those estimates. Acquisitions First Heritage On July 13, 2022, CURO closed the acquisition of First Heritage, a consumer lender that provides near-prime installment loans along with customary opt-in insurance and other financial products, for a total purchase price of $140.0 million in cash. Heights Finance On December 27, 2021, CURO closed the acquisition of Heights Finance, a consumer finance company that provides Installment loans and offers customary opt-in insurance and other financial products, for a total purchase price of $360.0 million ($335.0 million in cash plus $25.0 million in stock). Flexiti On March 10, 2021, CURO closed its acquisition of Flexiti, a POS and BNPL provider based in Toronto, Ontario, in a transaction accounted for as a business combination, for a total purchase price of up to $122.5 million ($86.5 million in cash and up to $32.8 million in contingent cash consideration subject to future operating metrics). Ad Astra On January 3, 2020, the Company acquired 100% of the outstanding stock of Ad Astra, a related party, for $14.4 million, net of cash received. Prior to the acquisition, Ad Astra was 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. Ad Astra, now a wholly-owned subsidiary, is included in the Consolidated Financial Statements. Upon the sale of the Legacy U.S. Direct Lending Business in July 2022, Ad Astra continued to service these loans as part of the Transition Services Agreement with Community Choice Financial. In January 2023, the Company ceased operations of Ad Astra. Refer to Note 2 4, " Subsequent Ev ents " for further discussion on Ad Astra. Refer to Note 14,"Acquisitions and Divestiture" for further information regarding the acquisitions and Note 4 , " Goodwill and Intangibles " for the impact to the Company's goodwill balance as a result of the acquisitions. Divestiture Legacy U.S. Direct Lending Business On July 8, 2022, the Company completed the divestiture of its Legacy U.S. Direct Lending Business to Community Choice Financial, for total cash of $345.0 million, of which $35.0 million is payable over 12 months. The divestiture resulted in a gain of $68.4 million for the three and nine months ended September 30, 2022, which was recorded in "Gain on sale of business" on the Consolidated Statement of Operations. As a result of this sale, the Company no longer guarantees loans originated by third-party lenders through CSO programs. As such the Company's results of operations discussed in the following paragraphs only include the results from the CSO program through July 8, 2022. Note 14, "Acquisitions and Divestiture" for further information regarding the divestiture and Note 4 , "Goodwill" for the impact to the Company's goodwill balance as a result of the divestiture. Change in Accounting Principle Related to Equity Method Investment in Katapult CURO first invested in Katapult in 2017 and increased its investment in later years. Katapult is an e-commerce focused, FinTech company offering an innovative lease financing solution to consumers and enabling essential transactions at the merchant POS. The Company accounted for its investment in Katapult under the equity method of accounting as of December 31, 2022. Refer to Note 5 , "Fair Value Measurements" for further information 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. Impacts of COVID-19 As a result of COVID-19, our customers and their overall credit performance were impacted through the years ended December 31, 2022, 2021 and 2020. We have maintained our historical allowance approach, but have adjusted estimates for changes in past-due gross loans receivable due to market conditions. Revenue Recognition As a result of the sale of the Legacy U.S. Direct Lending Business on July 8, 2022, the Company no longer guarantees loans originated by third-party lenders through CSO programs. As such, the Company's results of operations discussed below only include the results from the CSO program through July 8, 2022. Refer to Note 14, "Acquisitions and Divestiture" for additional information. CURO offers a broad range of consumer finance products including Revolving LOC, Unsecured Installment, Secured Installment and Single-Pay loans. Revenue in the Consolidated Statements of Operations includes: interest income, Merchant Discount Revenue ("MDR"), finance charges, CSO fees, late fees, insurance protection fees, non-sufficient funds fees and other ancillary fees. Product offerings differ and are governed by laws in each jurisdiction. Revolving 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. Revolving LOC loans have a periodic payment that is a fixed percentage of the customer’s outstanding loan balance, and there is no defined loan term. The Company records revenue from Revolving LOC loans on a simple-interest basis. Accrued interest and fees are included in gross loans receivable in the Consolidated Balance Sheets. Installment revenue is comprised of both unsecured and secured installment revenue, which 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. Installment loans are fully amortizing, with a fixed payment amount, which includes principal and accrued interest, due each period during the loan term. The loan terms for Installment loans can range up to 60 months depending on state or provincial regulations. The Company records revenue from Installment loans on a simple-interest basis. Accrued interest and fees are included in gross loans receivable in the Consolidated Balance Sheets as earned. CSO fees are recognized ratably over the term of the loan as earned. Secured Installment loans are similar to Unsecured Installment loans but are secured by a clear vehicle title or security interest in the vehicle. Single-Pay loan revenue, a component of installment revenue, consists primarily of unsecured, short-term, small denomination loans, with a small portion being auto title loans, which allow a customer to obtain a loan using their car as collateral. Revenues from Single-Pay loan products are recognized under the Installment revenue product. Revenues are recognized each period on a constant-yield basis ratably over the term of each loan as earned. The Company defers recognition of the unearned fees the Company expects to collect based on the remaining term of the loan at the end of each reporting period. Insurance premiums, commissions and other revenue includes revenue from a number of financial products such as check cashing, demand deposit accounts, optional credit protection insurance and money transfer services. Check cashing fees, money order fees and other fees from ancillary products and services are generally recognized at the POS when the transaction is completed. The sale of credit protection insurance and additional insurance the Company now offers as a result of the acquisition of Heights Finance and First Heritage are recognized ratably over the term of the loan. The Company is required to maintain an actuarial determined reserve for Heights Finance insurance products due to its reinsurance activities. As of December 31, 2022, the reserve was $1.9 million and is reported in "Accounts payable and accrued liabilities" in the Consolidated Balance Sheet. Merchant Discount Revenue Following the acquisition of Flexiti, the Company recognizes MDR, which represents a fee charged to merchant partners to facilitate customer purchases at merchant locations. The fee is recorded as unearned revenue when received and recognized over the expected loan term. The amount of fees charged, or merchant discount, is generally deducted from the payment to the merchant at the time a customer enters into a POS transaction with the merchant. The merchant discount rate is individually negotiated between the Company and each merchant and is initially recorded as deferred revenue upon the completion of each POS transaction. Cash and cash equivalents The Company considers deposits in banks and short-term investments with original maturities of 90 days or less as cash and cash equivalents. Restricted Cash The Company's restricted cash includes deposits in collateral accounts with financial institutions, consumer deposits related to prepaid cards and checking account programs and funds related to loan facilities disclosed in Note 3 , "Variable Interest Entities." In connection with insurance products offered by Heights Finance, certain of the Company's cash is restricted by agreements with financial institutions to meet certain state licensing requirements as required under various reinsurance agreements. As of December 31, 2022, our restricted cash related balance included $21.4 million for the Heights Finance reinsurance program and $52.3 million held for funding facilities. See Note 3, "Variable Interest Entities" and Note 6, "Debt" for further discussion on these facilities. Consumer Loans Receivable Consumer loans receivable are net of the allowance for loan losses, unearned insurance, unearned interest and fees and unamortized fair value discount for acquired loans receivable and are comprised of Revolving LOC, Unsecured Installment, Secured Installment and Single-Pay loans. Revolving LOC loans are lines of credit without a specified maturity date. Revolving LOC loans require periodic payments of principal and interest that is a fixed percentage of the customer's outstanding loan balance. Customers in good standing may draw against their line of credit, repay with minimum, partial or full payments and redraw as needed. Unsecured Installment and Secured Installment loans are fully amortizing loans with a fixed payment amount due each period during the term of the loan. The loan terms for Unsecured Installment and Secured Installment loans can range up to 60 months, depending on state regulations. Secured Installment loans are typically collateralized by titled vehicles. Revolving LOC loans are primarily unsecured. The product offerings differ by jurisdiction and are governed by the laws in each jurisdiction. Single-Pay loans are primarily unsecured, short-term, small denomination loans, with a small portion being auto title loans, which allow a customer to obtain a loan using their car as collateral. A Single-Pay loan transaction consists of providing a customer cash in exchange for the customer’s personal check or ACH authorization (in the aggregate amount of that cash plus a service fee), with an agreement to defer the presentment or deposit of that check or scheduled ACH withdrawal until the customer’s next payday, which is typically either two weeks or a month from the loan’s origination date. An auto title loan allows a customer to obtain a loan using the customer’s car as collateral for the loan, with a typical loan term of 30 days. Single-Pay loans are classified as Installment loans. Current and Past-Due Loans Receivable CURO classifies loans receivable as either current or past due. Single-Pay loans are considered past-due if a customer misses a scheduled payment, at which point the loan is charged-off. If a U.S. Direct Lending customer misses a scheduled payment for Revolving LOC or Installment loans, the entire customer balance is classified as past-due and is charged-off when the loan has been contractually past-due for 180 consecutive days. If a Canada Direct Lending or Legacy U.S. Direct Lending customer misses a scheduled payment for Revolving LOC or Installment loans, the entire customer balance is classified as past-due and is charged-off when the loan has been contractually past-due for 90 consecutive days. Canada POS Lending loans historically were charged-off when the loan was contractually past due for 180 days. Beginning January 1, 2023, Canada Direct Lending loans will have the same charge-off policy as U.S. Direct Lending loans. All loan receivables charge-off when notice of customer bankruptcy or consumer proposal has been received. Allowance for Loan Losses The Company maintains an ALL for loans and interest receivable at a level estimated to be adequate to absorb incurred losses based primarily on the Company's analysis of historical loss or charge-off rates for loans containing similar risk characteristics. The ALL on gross loans receivables reduces the outstanding gross loans receivables balance in the Consolidated Balance Sheets. Changes in the ALL, net of charge-offs and recoveries, are recorded as “Provision for losses” in the Consolidated Statements of Operations. In addition to an analysis of historical loss and charge-off rates, the Company also considers delinquency trends and any macro-economic conditions that it believes may affect portfolio losses. If a loan is deemed to be uncollectible before it is fully reserved based on received information (e.g., receipt of customer bankruptcy notice or death), the Company charges off the loan at that time. Qualitative factors such as the impact of new loan products, changes to underwriting criteria or lending policies, new store development or entrance into new markets, changes in jurisdictional regulations or laws, recent credit trends and general economic conditions impact management’s judgment on the overall adequacy of the ALL. Any recoveries on loans previously charged to the ALL are credited to the ALL when collected. Troubled Debt Restructuring 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. 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 ALL 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. 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 remain on non-accrual status until payment or charged-off. Payments are applied initially to any outstanding past due loan balances prior to current loan balances. Not all past-due payments will bring a loan off non-accrual status. The Company's policy for determining past due status is consistent with the accounts receivable aging disclosure. Credit Services Organization As a result of the sale of the Legacy U.S. Direct Lending Business on July 8, 2022, the Company no longer guarantees loans originated by third-party lenders through CSO programs. Refer to Note 14, "Acquisitions and Divestiture" for additional information. The paragraphs below outline the Company's accounting for the CSO program through July 8, 2022, the date of the divestiture of the CSO program. Through the CSO programs, the Company acted as a CSO/CAB on behalf of customers in accordance with applicable state laws. The Company offered loans through CSO programs in stores and online in the state of Texas. As a CSO, CURO earned revenue by charging the customer a CSO fee for arranging an unrelated third-party to make a loan to that customer. When a customer executed an agreement with CURO under the CSO programs, the Company agreed, for a CSO fee payable to the Company by the customer, to provide certain services to the customer, one of which was to guarantee the customer’s obligation to repay the loan to the third-party lender. CSO fees were calculated based on the amount of the customer's outstanding loan. For CSO loans, each lender was responsible for providing the criteria by which the customer’s application was underwritten and, if approved, determining the amount of the customer loan. The Company was, in turn, responsible for assessing whether or not to guarantee the loan. This guarantee represented an obligation to purchase loans if they were charged-off. CURO estimated a liability for losses associated with the guaranty provided to the CSO lenders using assumptions and methodologies similar to the ALL, which was recognized for the consumer loans and included as "Liability for losses on CSO lender-owned consumer loans" on the Consolidated Balance Sheets. For services provided under the CSO programs, the Company received payments from customers on their scheduled loan repayment due dates. The CSO fee was earned ratably over the term of the loan as the customers made payments. If a loan was paid off early, no additional CSO fees were due or collected. Since CSO loans were made by a third-party lender, they were not included in the Company's Consolidated Balance Sheets as loans receivable. CSO fees receivable were included in “Prepaid expenses and other” in the Consolidated Balance Sheets. The Company received cash from customers for these fees on their scheduled loan repayment due dates. For additional information on CSO loans, refer to Note 20 , "Credit Services Organization." Variable Interest Entities As part of its funding strategy and efforts to support the liquidity from sources other than the traditional capital market sources, the Company established a securitization program through the Heights SPV, First Heritage SPV, Flexiti SPV, Flexiti Securitization and Canada SPV facilities. See Note 3 , "Variable Interest Entities" and Note 6 , "Debt" for further discussion on these facilities. The Company transfers certain consumer loan receivables to the VIEs that issues term notes backed by the underlying consumer loan receivables which are serviced by other wholly-owned subsidiaries. For each facility, the Company has the ability to direct the activities of the VIE that most significantly impact the economic performance of the entities as the servicer of the securitized loan receivables. Additionally, CURO has the right to receive residual payments, which exposes the Company to the potential for significant losses and returns. Accordingly, the Company determined that they are the primary beneficiary of the VIEs and are required to consolidate them. Derivatives As foreign currency exchange rates change, translation of the financial results of the Canadian operations into U.S. Dollars are impacted. Operations in Canada represent a significant portion of total operations, and material changes in the currency exchange rates as between these two countries could have a significant impact on the Company's consolidated financial condition, results of operations or cash flows. The Company may elect to purchase derivatives to hedge exposures that would qualify as a cash flow or fair value hedge. The Company records derivative instruments at fair value as either an asset or liability on the Consolidated Balance Sheet. Changes in the derivative instruments' intrinsic value, to the extent that they are effective as a hedge, are recorded in Other comprehensive income (loss). For derivatives that qualify and have been designated as cash flow or fair value hedges for accounting purposes, the changes in fair value have no net impact on earnings, to the extent the derivative is considered perfectly effective in achieving offsetting changes in fair value or cash flows attributable to the risk being hedged, until the hedged item is recognized in earnings (commonly referred to as the “hedge accounting” method). During the year ended December 31, 2022, the Company entered into interest rate swaps on both the Flexiti SPV and Flexiti Securitization facilities. See Note 6, "Debt" for further discussion on these facilities. Property and Equipment Property and equipment is carried at cost less accumulated depreciation and amortization, except for property and equipment accounted for as part of a business combination, which is carried at fair value as of the acquisition date less accumulated depreciation and amortization. Expenditures for significant additions and improvements are capitalized. Maintenance repairs and renewals, that do not materially add to the fixed asset's value or appreciably prolong its life, are charged to expense as incurred. Gains and losses on dispositions of property and equipment are included in results of operations. The estimated useful lives for furniture, fixtures and equipment are five years to seven years. The estimated useful lives for leasehold improvements can vary from five years to 15 years, not to exceed the remaining term of the lease. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the depreciable or amortizable assets. Business Combination Accounting Business combination accounting requires that the Company determines the fair value of all assets acquired, including identifiable intangible assets, liabilities assumed and contingent consideration issued in a business combination. The cost of the acquisition is allocated to these assets and liabilities in amounts equal to the estimated fair value of each asset and liability as of the acquisition date, and any remaining acquisition cost is classified as goodwill. This allocation process requires extensive use of estimates and assumptions, including estimates of future cash flows to be generated by the acquired assets. The Company engages third-party appraisal firms to assist in fair value determination when appropriate. The acquisitions may also include contingent consideration, or earn-out provisions, which provide for additional consideration to be paid to the seller if certain conditions are met in the future. These earn-out provisions are estimated and recognized at fair value at the acquisition date based on projected earnings or other financial metrics over specified future periods. These estimates are reviewed during each subsequent reporting period and adjusted based upon actual results. Acquisition-related costs for potential and completed acquisitions are expensed as incurred and included in "Other operating expense" in the Consolidated Statements of Operations. Goodwill is initially valued based on the excess of the purchase price of a business combination over the fair value of the acquired net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Intangible assets other than goodwill are initially valued at fair value. When appropriate, the Company utilizes independent valuation experts to advise and assist in determining the fair value of the identified intangible assets acquired in connection with a business acquisition and in determining appropriate amortization methods and periods for those intangible assets. Any contingent consideration included as part of the purchase is recognized at its fair value on the acquisition date. Goodwill and Intangible Assets Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination at the time of acquisition. In accordance with ASC 350, Intangibles - Goodwill and Other ("ASC 350"), the Company performs impairment testing for goodwill and indefinite-lived intangible assets annually, as of October 1st, or whenever indicators of impairment exist. An impairment would occur if the carrying amount of a reporting unit exceeded the fair value of that reporting unit. These events or circumstances could include a significant change in the business climate, a change in strategic direction, legal factors, operating performance indicators, a change in the competitive environment, the sale or disposition of a significant portion of a reporting unit or economic outlook. The Company recorded an impairment loss on goodwill for the U.S. Direct Lending and Canada POS Lending reporting units during the year-ended December 31, 2022. No impairment was recorded on the Canada Direct Lending during the year-ended December 31, 2022 or any reporting unit for the year ended December 31, 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. Management uses both the income approach and market approach to complete its annual goodwill valuation. The income approach uses future cash flows and estimated terminal values for the Company that are discounted using a market participant perspective to determine the fair value. The income approach includes assumptions about revenue growth rates, operating margins and terminal growth rates discounted by an estimated weighted-average cost of capital. The market approach calculates the fair value of the invested capital based on the Company’s market capitalization and a comparison to guideline public companies multiples. When performing the two-step process, if the fair value of the reporting unit exceeds it carrying value, no further analysis or write-down of goodwill is required. In the event the estimated fair value of a reporting unit is less than the carrying value, the Company would recognize an impairment loss equal to such excess, which could significantly and adversely impact |
LOANS RECEIVABLE AND REVENUE
LOANS RECEIVABLE AND REVENUE | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
LOANS RECEIVABLE AND REVENUE | NOTE 2 – LOANS RECEIVABLE AND REVENUE As a result of the sale of the Legacy U.S. Direct Lending Business on July 8, 2022, the Company no longer guarantees loans originated by third-party lenders through CSO programs. The Company will continue to present these loans in the tables that follow based on historical practice and for comparability purposes. The following table summarizes revenue by product (in thousands): For the Year Ended December 31, 2022 2021 2020 Revolving LOC $ 345,813 $ 294,591 $ 249,502 Installment 559,594 449,144 538,685 Total interest and fees revenue 905,407 743,735 788,187 Insurance premiums and commissions 88,490 49,410 35,553 Other revenue 32,021 24,698 23,655 Total revenue (1) $ 1,025,918 $ 817,843 $ 847,396 (1) Includes revenue from CSO programs of $101.2 million, $167.1 million and $185.5 million for the years ended December 31, 2022, 2021 and 2020, respectively. December 31, 2022 Revolving LOC Installment (1) Total Current loans receivable $ 1,194,554 $ 649,262 $ 1,843,816 1-30 days past-due 46,956 76,709 123,665 31-60 days past-due 17,677 21,480 39,157 61-90 days past-due 12,190 14,143 26,333 91 + days past-due 13,138 41,724 54,862 Total delinquent loans receivable 43,005 77,347 120,352 Total loans receivable 1,284,515 803,318 2,087,833 Less: allowance for losses (78,815) (43,213) (122,028) Loans receivable, net $ 1,205,700 $ 760,105 $ 1,965,805 (1) Of the $803.3 million of installment receivables, $12.7 million relate to mandated extended payment options for certain Canada Single-Pay loans. December 31, 2021 Revolving LOC Installment - Company Owned (1) Total Current loans receivable $ 843,379 $ 512,207 $ 1,355,586 1-30 days past-due 35,657 58,373 94,030 31-60 days past-due 15,452 21,185 36,637 61-90 days past-due 13,397 17,146 30,543 91 + days past-due 6,228 25,294 31,522 Delinquent loans receivable 35,077 63,625 98,702 Total loans receivable 914,113 634,205 1,548,318 Less: allowance for losses (68,140) (19,420) (87,560) Loans receivable, net $ 845,973 $ 614,785 $ 1,460,758 (1) Of the $42.5 million of Single-Pay receivables, $11.3 million relate to mandated extended payment options for certain Canada Single-Pay loans. The following tables summarize loans Guaranteed by the Company under CSO programs and the related delinquent receivables (in thousands): December 31, 2021 Total Installment - Guaranteed by the Company Current loans receivable Guaranteed by the Company $ 38,102 1-30 days past-due 6,795 Delinquent loans receivable Guaranteed by the Company 1,420 Total loans receivable Guaranteed by the Company 46,317 Less: Liability for losses on CSO lender-owned consumer loans (6,908) Loans receivable Guaranteed by the Company, net $ 39,409 December 31, 2021 Total Installment - Guaranteed by the Company Delinquent loans receivable 31-60 days past-due $ 1,031 61-90 days past-due 285 91 + days past-due 104 Total delinquent loans receivable $ 1,420 The following tables summarize activity in the ALL and the liability for losses on CSO lender-owned consumer loans in total (in thousands): For the Year Ended Revolving LOC Installment Other Total Allowance for loan losses: Balance, beginning of period $ 68,140 $ 19,420 $ — $ 87,560 Charge-offs (162,587) (221,197) (11,443) (395,227) Recoveries 27,976 85,033 1,401 114,410 Net charge-offs (134,611) (136,164) (10,042) (280,817) Provision for losses 166,414 173,810 10,042 350,266 Divestiture (2) (13,555) (13,691) — (27,246) Effect of foreign currency translation (7,573) (162) — (7,735) Balance, end of period $ 78,815 $ 43,213 $ — $ 122,028 Liability for losses on CSO lender-owned consumer loans: (1) Balance, beginning of period $ — $ 6,908 $ — $ 6,908 Decrease in liability — (1,280) — (1,280) Divestiture (2) — (5,628) — (5,628) Balance, end of period $ — $ — $ — $ — (1) All balances in connection with the CSO programs were disposed of on July 8, 2022 upon the divestiture of the Legacy U.S. Direct Lending Business. (2) Write off of the ALL or liability for losses on CSO lender-owned consumer loans related to loan balance sold or guarantees transferred from the Company on July 8, 2022 upon the divestiture of the Legacy U.S. Direct Lending Business. For the Year Ended Revolving LOC Installment Other Total Allowance for loan losses: Balance, beginning of period $ 51,958 $ 34,204 $ — $ 86,162 Charge-offs (114,827) (191,734) (3,911) (310,472) Recoveries 29,454 107,147 1,810 138,411 Net charge-offs (85,373) (84,587) (2,101) (172,061) Provision for losses 102,457 69,766 2,101 174,324 Effect of foreign currency translation (902) 37 — (865) Balance, end of period $ 68,140 $ 19,420 $ — $ 87,560 Liability for losses on CSO lender-owned consumer loans: Balance, beginning of period $ — $ 7,228 $ — $ 7,228 Decrease in liability — $ (320) — $ (320) Balance, end of period $ — $ 6,908 $ — $ 6,908 As of December 31, 2022, Revolving LOC and Installment loans classified as non-accrual were $5.3 million and $54.6 million, respectively. As of December 31, 2021, Revolving LOC and Installment loans classified as non-accrual were $5.9 million and $41.4 million, respectively. The Company inherently considers non-accrual loans in its estimate of the ALL. TDR Loans Receivable 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 December 31, 2022 As of December 31, 2021 Current TDR gross receivables $ 10,169 $ 11,580 Delinquent TDR gross receivables 2,635 5,066 Total TDR gross receivables 12,804 16,646 Less: Impairment included in the allowance for loan losses (2,691) (3,632) Less: Additional allowance (660) (2,212) Outstanding TDR receivables, net of impairment $ 9,453 $ 10,802 The tables below present loans modified and classified as TDRs during the periods presented (in thousands): For the Year Ended December 31, 2022 2021 2020 Pre-modification TDR loans receivable $ 9,030 $ 16,255 $ 38,930 Post-modification TDR loans receivable 8,702 14,538 34,252 Total concessions included in gross charge-offs $ 328 $ 1,717 $ 4,678 There were $5.4 million and $14.0 million of loans classified as TDRs that were charged off and included as a reduction in the ALL during the year ended December 31, 2022 and 2021, respectively. The Company had commitments to lend additional funds of $1.4 million to customers with available and unfunded Revolving LOC loans classified as TDRs as of December 31, 2022. 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): For the Year Ended December 31, 2022 2021 2020 Average outstanding TDR loans receivable $ 11,065 $ 18,259 $ 20,631 Interest income recognized 5,320 18,328 17,074 Number of TDR loans 3,531 11,693 27,082 |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | NOTE 3 – VARIABLE INTEREST ENTITIES As of December 31, 2022, the Company had five credit facilities, whereby certain loans receivable were sold to wholly-owned VIEs to collateralize debt incurred under each facility. See Note 6 , "Debt " for additional details on each facility. 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 Consolidated Financial Statements. The carrying amounts of consolidated VIEs' assets and liabilities were as follows (in thousands): December 31, December 31, Assets Restricted cash $ 52,277 $ 57,155 Loans receivable, net 1,855,824 1,228,088 Prepaid expenses and other 12,908 — Deferred tax assets 17,027 — Total Assets $ 1,938,036 $ 1,285,243 Liabilities Accounts payable and accrued liabilities $ 13,571 $ 9,886 Deferred revenue 31 106 Deferred tax liability — 269 Accrued interest 7,023 3,279 Income taxes payable 7,850 — Debt, net 1,589,380 965,072 Total Liabilities $ 1,617,855 $ 978,612 |
GOODWILL AND INTANGIBLES
GOODWILL AND INTANGIBLES | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLES | NOTE 4 – GOODWILL AND INTANGIBLES Goodwill The Goodwill balance includes impairments recorded on the U.S. Direct Lending and Canada POS Lending reporting units in the fourth quarter of 2022. The change in the carrying amount of Goodwill by operating segment, known as reporting unit for goodwill testing purposes, for the years ended December 31, 2022 and 2021, was as follows (in thousands): U.S. Direct Lending Canada Direct Lending Canada POS Lending Total Goodwill at December 31, 2020 $ 105,922 $ 30,169 $ — $ 136,091 Foreign currency translation — (64) (515) (579) Measurement period adjustment — — (4,478) (4,478) Acquisition (Note 14) 253,857 — 44,901 298,758 Goodwill at December 31, 2021 359,779 30,105 39,908 429,792 Foreign currency translation — (1,847) (2,494) (4,341) Measurement period adjustment 11,825 — — 11,825 Divestiture (Note 14) (91,131) — — (91,131) Acquisition (Note 14) 75,365 — — 75,365 Goodwill Impairment Charge (107,827) — (37,414) (145,241) Goodwill at December 31, 2022 $ 248,011 $ 28,258 $ — $ 276,269 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" for additional information on the Company's policy for assessing goodwill for impairment. During the fourth quarter of 2022, the Company performed a quantitative assessment for each of its reporting units. Management considered the income approach and the guideline public company approach in determining a fair value for each of the three reporting units for purposes of testing the goodwill. Management utilized both the income approach and guideline public company approach equally weighted at 50% to estimate fair value. The income approach estimates fair value using the present value of future cash flows and the guideline public company approach estimates fair value using the fair value of publicly traded businesses in a similar line of business. Management determined that the fair value of each of the U.S. Direct Lending and Canada POS Lending reporting units were less than their respective carrying values. As a result, the Company recognized a non-cash pre-tax impairment charge of $107.8 million on the U.S. Direct Lending reporting unit and $37.4 million on the Canada POS Lending reporting unit during the year ended December 31, 2022 to write down the carrying value of goodwill. The non-cash impairment charge is included in Goodwill impairment in the Consolidated Statements of Operations for the year ended December 31, 2022. Management concluded that the estimated fair value of the Canada Direct Lending reporting unit was greater than its carrying value, as of the annual assessment date. As such, no impairment was required on the Canada Direct Lending reporting unit. The Company performed a qualitative assessment for its reporting units as of December 31, 2022. As a result of the earlier triggering event review, the Company concluded an additional assessment was not necessary and did not record an additional impairment loss during the quarter ended December 31, 2022. Flexiti Acquisition The Company completed the acquisition of Flexiti on March 10, 2021, resulting in $39.9 million of goodwill as of December 31, 2021, based on the excess of the purchase price over the fair value of the acquired net assets. Goodwill of $39.9 million was net of $4.5 million of adjustments upon the conclusion of the measurement period, and a $0.5 million of foreign currency translation impact as of December 31, 2021. See Note 14, "Acquisitions and Divestiture" for more information related to the business combination. Heights Finance Acquisition The Company completed the acquisition of Heights Finance on December 27, 2021. Provisional goodwill was estimated at $253.9 million, based on the preliminary valuation. The Company recorded a net $11.8 million of adjustments during the fiscal year 2022, resulting in a goodwill balance of $265.7 million, as of December 31, 2022 upon the conclusion of the measurement period. See Note 14, "Acquisitions and Divestiture" for more information related to the business combination. Legacy U.S. Direct Lending Business Divestiture On July 8, 2022 the Company completed the divestiture of its Legacy U.S. Direct Lending Business to Community Choice Financial, for total sale proceeds of $349.2 million, net of working capital adjustments, comprised of $314.2 million of cash received at close and $35.0 million in cash payable in monthly installment payments over the subsequent 12 months. The divestiture resulted in a gain of $68.4 million in the three and nine months ended September 30, 2022, which was recorded in "Gain on sale of business" on the Consolidated Statement of Operations. As part of the sale, $91.1 million of goodwill was written off. See Note 14,"Acquisitions and Divestiture" for more information related to the divestiture. First Heritage Acquisition On July 13, 2022, CURO closed the acquisition of First Heritage, a consumer lender that provides near-prime installment loans along with customary opt-in insurance and other financial products for a total purchase price of $140.0 million in cash. Provisional goodwill was recorded at $75.4 million.See Note 14, "Acquisitions and Divestiture" for more information related to the business combination. Intangibles Identifiable intangible assets consisted of the following: December 31, 2022 December 31, 2021 Weighted-Average Remaining Life (Years) Gross Accumulated Net Gross Accumulated Net Assets not subject to amortization Trade name — $ 21,432 $ — $ 21,432 $ 22,832 $ — $ 22,832 Assets subject to amortization Merchant relationships 3.3 18,265 (6,610) 11,655 19,459 (3,151) 16,308 Customer relationships 2.4 18,005 (5,957) 12,048 20,285 (10,295) 9,990 Computer software (1) 5.4 101,899 (30,833) 71,066 81,844 (25,453) 56,391 Trade name 11.6 8,411 (935) 7,476 4,621 (212) 4,409 Balance, end of year $ 168,012 $ (44,335) $ 123,677 $ 149,041 $ (39,111) $ 109,930 (1) Includes internally developed software, of $60.6 million and $44.7 million, net, as of December 31, 2022 and 2021, respectively. The Company's identifiable intangible assets are amortized using the straight-line method over the estimated remaining useful lives, except for the Cash Money trade name intangible asset that has a carrying amount of $21.4 million, which was determined to have an indefinite life and is not amortized. The estimated useful lives for the Company's other intangible assets range from one The following table outlines the estimated amortization expense related to intangible assets held at December 31, 2022 for each of the next five years (in thousands): Year Ending December 31, 2023 $ 23,817 2024 21,859 2025 16,947 2026 6,158 2027 4,252 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 5 – 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 inputs, 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 Consolidated Balance Sheets at December 31, 2022 (in thousands): Estimated Fair Value Carrying Value December 31, Level 1 Level 2 Level 3 Total Financial assets: Cash Surrender Value of Life Insurance $ 7,591 $ 7,591 $ — $ — $ 7,591 Derivative assets 7,458 — 7,458 — 7,458 Financial liabilities: Non-qualified deferred compensation plan $ 5,149 $ 5,149 $ — $ — 5,149 Contingent consideration related to acquisition 16,884 — — 16,884 16,884 Derivative Assets The Company uses interest rate swaps to manage interest rate risk exposure on variable rate debt. The Company typically classifies these derivatives as Level 2, given that significant inputs can be observed in a liquid market and the model itself does not require significant judgment. These derivative assets are included in other assets Note 6 , "Debt ." 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 decreased from the initial measurement of $20.6 million as of March 31, 2021 to $16.9 million as of December 31, 2022. The Company paid $1.0 million of contingent consideration in July 2022. For additional information on Flexiti and the related contingent consideration, refer to Note 14, "Acquisitions and Divestiture." Cash Surrender Value of Life Insurance and Non-qualified deferred compensation plan The cash surrender value of life insurance is included in “Other assets” in the Company’s Consolidated Balance Sheets. The non-qualified deferred compensation plan offsetting liability is included in “Accounts payable and accrued liabilities” in the Company’s Consolidated Balance Sheets. The table below presents the assets and liabilities that were carried at fair value on the Consolidated Balance Sheets at December 31, 2021 (in thousands): Estimated Fair Value Carrying Value December 31, Level 1 Level 2 Level 3 Total Financial assets: Cash Surrender Value of Life Insurance $ 8,242 $ 8,242 $ — $ — $ 8,242 Financial liabilities: Non-qualified deferred compensation plan $ 5,109 $ 5,109 $ — $ — $ 5,109 Contingent consideration related to acquisition 26,508 — — 26,508 26,508 Financial Assets and Liabilities Not Carried at Fair Value The table below presents the assets and liabilities that were not carried at fair value on the Consolidated Balance Sheets at December 31, 2022 (in thousands): Estimated Fair Value Carrying Value December 31, Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 73,932 $ 73,932 $ — $ — $ 73,932 Restricted cash 91,745 91,745 — — 91,745 Loans receivable, net 1,965,805 — — 1,965,805 1,965,805 Investment in Katapult 23,915 20,624 — — 20,624 Financial liabilities: 7.50% Senior Secured Notes $ 982,934 $ — $ 466,500 $ — $ 466,500 Heights SPV 393,181 — — 393,181 393,181 First Heritage SPV 178,622 — — 182,751 182,751 Flexiti SPV 339,651 — — 343,565 343,565 Flexiti Securitization 385,054 — — 387,759 387,759 Canada SPV 292,872 — — 294,594 294,594 The table below presents the assets and liabilities that were not carried at fair value on the Consolidated Balance Sheets at December 31, 2021 (in thousands): Estimated Fair Value Carrying Value December 31, Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 63,179 $ 63,179 $ — $ — $ 63,179 Restricted cash 98,896 98,896 — — 98,896 Loans receivable, net 1,460,758 — — 1,460,758 1,460,758 Investment in Katapult 27,900 72,627 — — 72,627 Financial liabilities: Liability for losses on CSO lender-owned consumer loans (1) $ 6,908 $ — $ — $ 6,908 $ 6,908 7.50% Senior Secured Notes 980,721 — 1,005,700 — 1,005,700 U.S. SPV (1) 45,392 — — 49,456 49,456 Canada SPV 157,813 — — 160,533 160,533 Flexiti SPV 172,739 — — 176,625 176,625 Flexiti Securitization 239,128 — — 242,886 242,886 Heights Finance SPV 350,000 — — 350,000 350,000 (1) Liabilities were disposed of when we completed the divestiture of the Legacy U.S. Direct Lending Business on July 8, 2022. Loans Receivable, Net Loans receivable are carried on the 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 2 , "Loans Receivable and Revenue" for additional information. CSO Program Following the sale of the Legacy U.S. Direct Lending Business on July 8, 2022, the Company no longer guarantees loans originated by third-party lenders through CSO programs. The Company will continue to present these loans in the tables that follow based on historical practice and for comparability purposes. Refer to Note 14, "Acquisitions and Divestiture" for additional information. In connection with CSO programs, the Company guaranteed consumer loan payment obligations to unrelated third-party lenders for loans that the Company arranged for consumers on the third-party lenders’ behalf. The Company was required to purchase from the lender charged-off loans that it had guaranteed. Refer to Note 2 , "Loans Receivable and Revenue" and Note 20 , Credit Services Organization" for additional information. All balances in connection with the CSO programs were disposed of with the completion of the divestiture of the Legacy U.S. Direct Lending Business on July 8, 2022. 7.50% Senior Secured Notes, Heights SPV, First Heritage SPV, Flexiti SPV, Flexiti Securitization, Canada SPV, Curo Canada Revolving Credit Facility and Senior Revolver (U.S. SPV and Heights Finance SPV extinguished during the third quarter of 2022) The fair value disclosures for the 7.50% Senior Secured Notes as of December 31, 2022 and December 31, 2021 were based on observable market trading data. The fair values of the Heights SPV, First Heritage SPV, Flexiti SPV, Flexiti Securitization, Canada SPV, Curo Canada Revolving Credit Facility and Senior Revolver 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 income 4,546 — 4,546 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 Purchases of common stock 1,570 — 1,570 Balance at December 31, 2020 7,762 19,609 27,371 Equity method income 3,658 — 3,658 Conversion of investment (2) 6,481 (19,609) (13,128) Purchases of common stock 9,999 — 9,999 Balance at December 31, 2021 27,900 — 27,900 Equity method loss (3,985) — (3,985) Balance at December 31, 2022 $ 23,915 $ — $ 23,915 (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. The Company began investing in Katapult in 2017 and increased its investment through multiple private placement acquisitions. 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 $1.9 million for the three months ended December 31, 2022 based on its share of Katapult’s earnings. During the fourth quarter of 2021, the Company purchased an additional 2.6 million shares of common stock of Katapult for an aggregate purchase price of $10.0 million. 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). 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 eight board of director seats for Katapult. Both the equity method investment and the previously recognized investment measured at cost minus impairment are presented within "Investment in Katapult" on the Consolidated Balance Sheets. The Company owns 19.5% of Katapult on a fully diluted basis assuming full pay-out of earn-out shares as of December 31, 2022, and 18.2% excluding pay-out of earn-out shares. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | NOTE 6 – DEBT As of September 30, 2022, the Company transitioned all variable rate debt facilities utilizing LIBOR to SOFR. Refer to Note 1, "Summary of Significant Accounting Policies and Nature of Operations" for additional details on the transition from LIBOR. The Company's debt instruments and balances outstanding as of December 31, 2022 and December 31, 2021, including maturity date, effective interest rate and borrowing capacity, were as follows (dollars in thousands): Effective interest rate Outstanding as of Maturity Date Borrowing Capacity December 31, 2022 December 31, 2021 Corporate Debt: 7.50% Senior Secured Notes August 1, 2028 7.50 % $ 1,000,000 $ 1,000,000 Total corporate debt 1,000,000 1,000,000 Funding Debt: Heights SPV July 15, 2025 1-Mo SOFR + 4.25% $425.0 million $ 400,758 $ — First Heritage SPV July 13, 2025 1-Mo SOFR + 4.25% $225.0 million 182,751 — Flexiti SPV (1) September 29, 2025 Weighted average interest rate (4)(7) 8.33% C$535.0 million 343,565 176,625 Flexiti Securitization (1) (5) December 9, 2025 1-Mo CDOR + 3.59% (7) C$526.5 million 387,759 242,886 Canada SPV (1) August 2, 2026 3-Mo CDOR + 6.00% C$400.0 million 294,594 160,533 Heights Finance SPV (3) N/A (3) 1-Mo LIBOR + 5.25% $350.0 million — 350,000 U.S. SPV (2) N/A (2) 1-Mo LIBOR + 6.25% $200.0 million — 49,456 Curo Canada Revolving Credit Facility (1)(6) On-demand Canada Prime Rate + 1.95% C$5.0 million — — Senior Revolver August 31, 2023 1-Mo SOFR + 5.00% $40.0 million 35,000 — Total funding debt $ 1,644,427 $ 979,500 Less: debt issuance costs (37,113) (33,707) Total Debt $ 2,607,314 $ 1,945,793 (1) Capacity amounts are denominated in Canadian dollars, whereas outstanding balances as of December 31, 2022 and December 31, 2021 are denominated in U.S. dollars. The exchange rate applied at December 31, 2022 was 0.7365 and the exchange rate at December 31, 2021 was 0.7846. (2) The U.S. SPV was extinguished on July 8, 2022 upon the divestiture of the Legacy U.S. Direct lending Business. (3) The Heights Finance SPV was extinguished on July 15, 2022 and replaced as of July 15, 2022 with Heights SPV. (4) The weighted average interest rate does not include the impact of the amortization of deferred loan origination costs or debt discounts. (5) The effective rate is 7.09%. (6) On December 21, 2022, the maximum amount of the CURO Canada Revolving Credit Facility was reduced from C$10.0 million to C$5.0 million, and the facility was cancelled on January 6, 2023. (7) Swapped to fixed rate via interest rate swap hedging arrangement entered into on July 7, 2022 for Flexiti Securitization and October 11, 2022 for Flexiti SPV. Corporate Debt 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 December 2021, the Company issued an additional $250.0 million of 7.50% Senior Secured Notes, also maturing on August 1, 2028, to fund the acquisition of Heights Finance. Refer to Note 14, "Acquisitions and Divestiture " for additional details. In connection with the 7.50% Senior Secured Notes, financing costs of $17.1 million were capitalized, net of amortization, and included in the 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 as a component of interest expense over its term. 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. Funding Debt As of December 31, 2022, the Company had five credit facilities whereby loans receivable were sold to wholly-owned VIEs to collateralize debt incurred under each facility. These facilities are the (i) Heights SPV, (ii) First Heritage SPV, (iii) Canada SPV, (iv) Flexiti SPV and (v) Flexiti Securitization. For further information on these facilities, refer to Note 3 , "Variable Interest Entities" . Heights SPV On July 15, 2022, we entered into a new $425.0 million non-recourse revolving warehouse facility to replace the incumbent lender's facility and finance future loans originated by Heights Finance. The effective interest rate is 1-month SOFR plus 4.25%. The Company also pays a 0.50% per annum commitment fee on the unused portion of the commitments. The warehouse revolving period matures on July 15, 2025. First Heritage SPV On July 13, 2022, concurrently with the closing of the First Heritage acquisition, the Company entered into a $225.0 million non-recourse revolving warehouse facility to replace the incumbent lender's facility and finance future loans originated by First Heritage. The effective interest rate is 1-month SOFR plus 4.25%. The Company also pays a 0.50% per annum commitment fee on the unused portion of the commitments. The warehouse revolving period matures on July 13, 2025. Flexiti SPV On September 29, 2022, Flexiti refinanced and increased its Flexiti SPV in order to increase the borrowing capacity from C$500.0 million to C$535.0 million and extend its maturity to September 29, 2025. As of December 31, 2022, the weighted average interest rate was 8.33%. Flexiti also pays a 0.50% per annum commitment fee on the unused portion of the commitments. All other material terms of the revolving warehouse credit facility remain unchanged. The early extinguishment of the Flexiti SPV resulted in a loss of $0.7 million. Flexiti Securitization In December 2021, Flexiti Securitization Limited Partnership, a wholly-owned Canadian subsidiary of the Company, entered into the Flexiti Securitization. The facility provides for C$526.5 million with a maturity of December 9, 2025. As of December 31, 2022, the effective interest was one-month CDOR plus 3.59%. Canada SPV In August 2018, CURO Canada Receivables Limited Partnership, a wholly-owned subsidiary of the Company, entered into the Canada SPV. During the fourth quarter of 2021 and first quarter of 2022, the Company amended the existing credit facility to, among other things, (i) increase the borrowing capacity from C$175.0 million to C$400.0 million, (ii) reduce borrowing costs and (iii) extend the initial maturity date by three years, to August 2, 2026.. The effective interest rate was 3-month CDOR plus 6.00%. The borrower also pays a 0.50% per annum commitment fee on the unused portion of the commitments. Heights Finance SPV In December 2021, the Company acquired Heights Finance, including the Heights Finance SPV. Heights Finance entered into the Heights Finance SPV in December 2019 with a total revolving commitment of $350.0 million. The interest rate on the facility is one-month LIBOR plus 5.25%. The Heights Finance SPV was scheduled to mature on December 31, 2024. The Heights Finance SPV was extinguished on July 15, 2022, using proceeds from the new $425.0 million non-recourse revolving warehouse facility, "Heights SPV," as described above. The early extinguishment of the Heights Finance SPV resulted in a loss of $0.6 million. U.S. SPV In April 2020, CURO Receivables Finance II, LLC, a wholly-owned subsidiary of the Company, entered into the U.S. SPV, which provided for $200.0 million of borrowing capacity with an effective interest rate on the Company's borrowings of 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 U.S. SPV was scheduled to mature on April 8, 2024. The U.S. SPV was extinguished on July 8, 2022 upon the completion of the divestiture of our Legacy U.S. Direct Lending Business to Community Choice Financial. The early extinguishment of the U.S. SPV resulted in a loss of $3.1 million. Senior Revolver The Company maintains the Senior Revolver that provides $40.0 million of borrowing capacity, including up to $4.0 million of standby letters of credit, for a one-year term, renewable for successive terms following annual review. The current term expires August 31, 2023. The Senior Revolver accrues interest at one-month SOFR plus 5.00%. Curo Canada Revolving Credit Facility Curo Canada maintains the Curo Canada Revolving Credit Facility, formerly known as the Cash Money Revolving Credit Facility, which provides short-term liquidity for the Company's Canadian direct lending operations. The Curo Canada 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 Curo Canada Revolving Credit Facility bear interest per annum at the prime rate of a Canadian chartered bank plus 1.95%. On December 21, 2022 the borrowing capacity under the Curo Canada Revolving Credit Facility was reduced from C$10.0 million to C$5.0 million, and the facility was cancelled on January 6, 2023. For additional information on Flexiti and the related contingent consideration, refer to Note 24 , " Subsequent Events . " Derivative Instruments and Hedging Activities During the year ended December 31, 2022, the Company entered into interest rate swaps to manage interest rate risk on variable rate debt. The Company designated these risk management derivatives as qualifying cash flow hedges under hedge accounting. The derivative assets are included in other assets on our Consolidated Balance Sheet and changes in the fair value of derivatives are recorded as a component of Accumulated other comprehensive income (“AOCI”). During the year ended December 31, 2022, the hedges were assessed as effective and as such there was no impact to earnings. However, for cash flow hedges during periods in which the forecasted transactions impact earnings, those amounts are reclassified into earnings in the same period during which the forecasted transactions impact earnings and presented in the same line item in the Consolidated Statements of Income as the earnings effect of the hedged items and reflected in operating activities on the Statement of Cash Flows. Interest Rate Swap on Flexiti SPV In accordance with the terms of the Flexiti SPV, on October 11, 2022, Flexiti entered into an interest rate swap to protect against the interest risk on the C$390.0 million, variable rate portion of the borrowing facility, with a notional amount of C$390.0 million. As of December 31, 2022, a $0.8 million interest rate swap is included in Other assets Interest Rate Swap on Flexiti Securitization In accordance with the terms of the Flexiti Securitization, on July 7, 2022, Flexiti entered into an interest rate swap to protect against the interest risk on the C$526.5 million, variable rate, borrowing facility, with a notional amount of C$526.5 million. As a result of the swap, the effective interest rate is 7.09%. As of December 31, 2022, a $6.6 million interest rate swap is included in other assets Ranking and Guarantees The 7.50% Senior Secured Notes rank senior in right of payment to all of the Company's and its guarantor entities’ existing and future subordinated indebtedness and equal in right of payment with all of the Company's and its guarantor entities’ existing and future senior indebtedness, including borrowings under revolving credit facilities. Pursuant to the Inter-creditor Agreement, these notes and the guarantees will be effectively subordinated to credit facilities and certain other indebtedness to the extent of the value of the assets securing such indebtedness and to liabilities of subsidiaries that are not guarantors. The 7.50% Senior Secured Notes are secured by liens on substantially all of the Company's and the guarantors’ assets, subject to certain exceptions. At any time prior to August 1, 2024, the Company may redeem (i) up to 40% of the aggregate principal amount of the notes at a price equal to 107.5% of the principal amount, plus accrued and unpaid interest, if any, to the applicable redemption date with the net proceeds to the Company of certain equity offerings; and (ii) some or all of the Notes at a make-whole price. On or after August 1, 2024, the Company may redeem some or all of the Notes at a premium that will decrease over time, plus accrued and unpaid interest, if any, to the applicable date of redemption. The redemption price for the Notes if redeemed during the 12 months beginning (i) August 1, 2024 is 103.8%, (ii) August 1, 2025 is 101.9% and (iii) on or after August 1, 2026 is 100.0%. Future Maturities of Debt Annual maturities of outstanding debt for each of the five years after December 31, 2022 are as follows (in thousands): Amount 2023 $ 35,000 2024 — 2025 1,314,833 2026 294,594 2027 — Thereafter 1,000,000 Debt (before deferred financing costs and discounts) 2,644,427 Less: deferred financing costs and discounts 37,113 Debt, net $ 2,607,314 |
COMMITMENTS AND CONTENGENCIES
COMMITMENTS AND CONTENGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 7 – 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 directors and officers 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. The case was resolved in 2020 for $9.0 million, of which the first $2.5 million was paid by the Company and the remainder paid by the Company's insurance carriers. For the year ended December 31, 2022, there was no further expense related to this litigation. In June and July 2020, three shareholder derivative lawsuits were filed in the United States District Court for the District of Delaware ("Court") against the Company, certain of its directors and officers, and in two of the three lawsuits, a large stockholder. Plaintiffs generally alleged 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. On October 27, 2022, the Court granted final approval of the parties' settlement and dismissed the case with prejudice. The terms of the settlement provided for the implementation of certain corporate governance reforms and a payment of $345,000 in attorneys’ fees and expenses to plaintiffs’ counsel, which was paid by the Company's insurers, and included no admission of liability or wrongdoing by the Company. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 8 – INCOME TAXES Income before taxes and income tax expense (benefit) was comprised of the following (in thousands): Year Ended December 31, 2022 2021 2020 (Loss) income before taxes U.S. $ (140,463) $ 86,106 $ 59,741 Non-U.S. (53,697) (5,549) 20,602 (Loss) income from continuing operations before taxes $ (194,160) $ 80,557 $ 80,343 Current provision (benefit) Federal $ 16,254 $ 21,549 $ (14,585) State 3,783 4,553 5,959 Foreign 9,120 13,639 3,925 Current provision (benefit) $ 29,157 $ 39,741 $ (4,701) Deferred tax (benefit) provision Federal $ (19,691) $ (5,022) $ 14,949 State (1,873) 154 (1,247) Foreign (16,271) (13,650) (3,106) Deferred tax (benefit) provision $ (37,835) $ (18,518) $ 10,596 (Benefit) provision for income taxes $ (8,678) $ 21,223 $ 5,895 Differences between the Company's effective income tax rate computed on net earnings or loss before income taxes and the statutory federal income tax rate were as follows (dollars in thousands): Year Ended December 31, 2022 2021 2020 Income tax (benefit) expense using the statutory federal rate in effect $ (40,774) $ 16,917 $ 16,872 Tax effect of: Effects of foreign rates different than U.S. statutory rate 3,222 518 (1,236) State, local and provincial income taxes, net of federal benefit (2,635) 3,359 6,619 Tax credits (678) (802) (3,188) Nondeductible expenses 1,801 1,090 564 Valuation allowance 1,349 (275) (2,686) Prior year income tax re-determination (602) — — Share-based compensation 132 (705) 1,119 Gain on sale of business 8,484 — — Impairment of Goodwill 22,369 — — Federal NOL carryback — — (11,251) Prior year basis adjustment — — (659) Change in fair value of contingent consideration (1,187) 944 — Other (159) 177 (259) Total (benefit) provision for income taxes $ (8,678) $ 21,223 $ 5,895 Effective income tax rate 4.5 % 26.3 % 7.3 % Statutory federal income tax rate 21.0 % 21.0 % 21.0 % On March 27, 2020, the CARES Act was enacted in response to the COVID-19 pandemic, which, among other things, allowed U.S. federal 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 income taxes. In 2020, the Company recorded an income tax benefit of $11.3 million due to the differential in income tax rates related to the carryback of NOLs from tax years 2018 and 2019 to years with a higher statutory tax rate. The Company's major tax jurisdictions are U.S. federal, various states and Canada (including provinces). In the U.S., the tax years 2018 through 2021 remain open to examination by the taxing authorities as well as tax years 2013 through 2017 to the extent of refund claims resulting from 2018 and 2019 NOL carrybacks. The tax years 2016 through 2021 remain open to examination by the taxing authorities in Canada. As of December 31, 2022, the Company is under income tax examinations in the U.S. by the Internal Revenue Service for tax years 2018 and 2019, in Canada by the Canadian Revenue Agency for tax years ending June 30, 2017 through June 30, 2018 and in Canada by Alberta Treasury Board and Finance for tax years ending December 31, 2018 and December 31, 2019. The total amount of gross unrecognized tax benefits was $2.0 million and $0.3 million at December 31, 2022 and 2021, respectively. The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate is $2.0 million at December 31, 2022. The Company expects no material change related to its current positions in recorded unrecognized income tax (benefit) liability in the next 12 months. The Company classifies interest and penalties related to income taxes as other expenses. The Company did not record any interest or penalties related to unrecognized tax benefits during each of the years ended December 31, 2022 and 2021. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands): Year Ended December 31, 2022 2021 Balance at the beginning of year $ 250 $ 1,100 Additions for tax positions related to prior years 1,648 125 Additions for tax positions related to the current year 60 125 Settlements with taxing authorities — (1,100) Balance at end of year $ 1,958 $ 250 The sources of deferred income tax assets (liabilities) are summarized as follows (in thousands): Year Ended December 31, 2022 2021 Deferred tax assets related to: Loans receivable $ 9,913 $ — Accrued expenses and other reserves 7,309 2,960 Lease liability 16,055 26,777 Compensation accruals 6,826 5,845 Deferred revenue 1,811 204 State and provincial NOL carryforwards 18,560 15,547 Foreign NOL and capital loss carryforwards 21,378 17,090 Tax credit carryforwards 3,872 3,905 Gross deferred tax assets 85,724 72,328 Less: Valuation allowance (9,719) (7,732) Net deferred tax assets $ 76,005 $ 64,596 Deferred tax liabilities related to: Property and equipment $ (2,820) $ (14,950) Right of use asset (15,648) (25,304) Goodwill and other intangible assets (2,730) (9,914) Prepaid expenses and other assets (3,055) (466) Hedge accounting (1,859) — Loans receivable — (4,367) Gross deferred tax liabilities (26,112) (55,001) Net deferred tax assets $ 49,893 $ 9,595 Deferred tax assets and liabilities are included in the following line items in the Consolidated Balance Sheets (in thousands): Year Ended December 31, 2022 2021 Deferred tax assets $ 49,893 $ 15,639 Deferred tax liabilities — (6,044) Net deferred tax assets $ 49,893 $ 9,595 As of December 31, 2022, the Company had undistributed earnings of certain foreign subsidiaries of $255.2 million. The Company intends to reinvest its foreign earnings indefinitely in the non-U.S. operations and therefore has not provided for any non-U.S. withholding tax that would be assessed on dividend distributions. If the earnings of $255.2 million were distributed to the U.S., the Company would be subject to estimated Canadian withholding taxes of approximately $12.8 million. The determination of the U.S. state income taxes upon a potential foreign earnings distribution is impractical. In the event the earnings were distributed to the U.S., the Company would adjust its income tax provision for the period and would determine the amount of foreign tax credit that would be available. A summary of the valuation allowance was as follows (in thousands): Year Ended December 31, 2022 2021 2020 Balance at the beginning of year $ 7,732 $ 5,695 $ 8,328 Increase (decrease) to balance charged as expense 1,349 (275) (2,686) Increase to balance charged to opening balance sheet of the acquisition 1,044 1,873 — (Decrease) to balance for the divestiture (542) — — Increase (decrease) to balance charged to Other comprehensive income 136 392 (378) Effect of foreign currency translation — 47 431 Balance at end of year $ 9,719 $ 7,732 $ 5,695 In general, management believes that the realization of its deferred tax assets is more likely than not based on the expectations of future taxable income; therefore, there was no deferred tax valuation allowance at December 31, 2022, 2021 or 2020 with the exception of the tax benefits from certain carryovers of state and foreign losses and Foreign Tax Credits ("FTC"). As of December 31, 2022, the Company's deferred tax assets from Canadian federal and provincial NOL carryforwards were approximately $34.8 million. The Canadian NOL carryforwards expire in varying amounts between 2033 and 2042. During the tax year ended December 31, 2020, the Company concluded that a planning strategy is prudent and feasible and that it will be implemented if needed to prevent Canadian NOLs from expiring. As such, the Company released a $4.6 million valuation allowance related to these NOLs and had no valuation allowance related to these NOLs as of December 31, 2020. Relying on this tax strategy for most of its Canadian NOLs, as of December 31, 2022, the Company had a valuation allowance of $1.2 million for NOLs without a feasible tax planning strategy. As of December 31, 2022, the Company's deferred tax assets from Canadian capital losses were $1.7 million. These losses can be carried forward indefinitely, however, the Company does not have material sources of generating capital gains, therefore, a full valuation allowance has been recorded against these losses. As of December 31, 2022, the Company had state NOL carryforward deferred tax assets of $3.5 million. These carryforwards expire in varying amounts between 2033 and 2042. The Company has recorded a valuation allowance of $3.2 million related to the NOLs generated in states in which the Company may not have taxable income in the near future. For the year ended December 31, 2021, the Company recorded a deferred tax asset of $3.0 million related to FTC carryovers from prior years with a corresponding full valuation allowance, as the Company determined the FTC carryover will expire prior to utilization. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 9 – EARNINGS PER SHARE The following table presents the computation of basic and diluted earnings per share (in thousands, except per share amounts): For the Year Ended 2022 2021 2020 Net (loss) income from continuing operations $ (185,484) $ 59,334 $ 74,448 Net income from discontinued operations, net of tax — — 1,285 Net income $ (185,484) $ 59,334 $ 75,733 Weighted average common shares - basic 40,428 41,155 40,886 Dilutive effect of stock options and restricted stock units — 1,988 1,205 Weighted average common shares - diluted 40,428 43,143 42,091 (Loss) earnings per share: Continuing operations $ (4.59) $ 1.44 $ 1.82 Discontinued operations — — 0.03 Basic (loss) earnings per share $ (4.59) $ 1.44 $ 1.85 Diluted (loss) earnings per share: Continuing Operations $ (4.59) $ 1.38 $ 1.77 Discontinued operations — — 0.03 Diluted (loss) earnings per share $ (4.59) $ 1.38 $ 1.80 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 year ended December 31, 2022, 2021 and 2020 there were 2.8 million, 0.2 million and 0.8 million of potential shares of common stock excluded from the calculation of diluted earnings per share because their effect was anti-dilutive. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 10 – SHARE BASED COMPENSATION The 2010 Equity Incentive Plan provided for the issuance of up to 2.16 million shares, subject to certain adjustment provisions, in the form of stock options, restricted stock and stock grants. In connection with approval of the 2017 Incentive Plan, no new awards were granted under the 2010 Equity Incentive Plan. See Note 1, "Summary of Significant Accounting Policies and Nature of Operations" for additional information on share-based compensation. Stock Options Stock options are awards which allow the grantee to purchase shares of common stock at prices equal to the fair value at the date of grant. Stock options typically vest at a rate of 20% per year over a 5-year period, have a term of 10 years and are subject to limitations on transferability. The Company did not grant stock option awards under the 2017 Incentive Plan in 2022, 2021 or 2020. At the time of grant, the Company uses the Black-Scholes option pricing model to determine the fair value of stock options. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by individuals who receive equity awards, and subsequent events are not indicative of the reasonableness of the Company's original estimates of fair value. The Company has estimated the expected term of stock options using a formula considering the weighted average vesting term and the original contract term. The expected volatility is estimated based upon the historical volatility of publicly traded stocks from the Company's industry sector (the alternative financial services sector). The expected risk-free interest rate is based on an average of various U.S. Treasury rates based on the expected term of the awards. The following table summarizes the Company's stock option activity for the years ended December 31, 2022, 2021 and 2020: Stock Options Weighted Average Exercise Price Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in millions) Outstanding at Outstanding at January 1, 2020 1,404,622 $ 3.56 2.6 $ 12.1 Granted — $ — $ — Exercised (274,510) $ 2.79 $ 3.2 Forfeited — $ — $ — Outstanding at December 31, 2020 1,130,112 $ 3.74 2.6 $ 12.0 Granted — $ — $ — Exercised (615,024) $ 2.83 $ 8.1 Forfeited — $ — $ — Outstanding at December 31, 2021 515,088 $ 4.83 4.2 $ 5.8 Granted — $ — $ — Exercised — $ — $ — Forfeited — $ — $ — Outstanding at December 31, 2022 515,088 $ 4.83 3.2 $ (0.7) Options exercisable at December 31, 2022 515,088 $ 4.83 3.2 $ (0.7) RSUs As of December 31, 2022, the Company has granted three types of RSUs: time-based, market-based and performance-based. Grants of time-based RSUs are valued at the date of grant 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 or four-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 the market-based RSUs occurs over the service period using the straight-line method. The Company granted performance-based RSUs to certain Flexiti employees following the closing of the acquisition. 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 ending in March 2023 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 for the years ended December 31, 2022, 2021 and 2020 are presented in the following table: Number of RSUs Weighted Average Time-Based Market-Based Performance-Based January 1, 2020 1,061,753 394,861 — $ 11.47 Granted 694,213 368,539 — $ 10.40 Vested (716,268) — — $ 12.86 Forfeited (26,906) (4,687) — $ 11.89 December 31, 2020 1,012,792 758,713 — $ 10.26 Granted 1,238,564 299,053 253,310 $ 15.51 Vested (494,790) — — $ 11.04 Forfeited (80,638) (51,032) — $ 11.46 December 31, 2021 1,675,928 1,006,734 253,310 $ 13.27 Granted 1,649,980 1,422,886 — $ 9.75 Vested (785,751) — (7,568) $ 13.80 Forfeited (444,088) (701,258) (101,252) $ 11.90 December 31, 2022 2,096,069 1,728,362 144,490 $ 10.87 Share-based compensation expense, which includes compensation costs from stock options and RSUs, included in the Consolidated Statements of Operations as a component of "Salaries and benefits" is summarized in the following table (in thousands): For the year ended, 2022 2021 2020 Pre-tax share-based compensation expense $ 13,957 $ 13,976 $ 12,910 Income tax benefit (3,283) (4,475) (1,164) Total share-based compensation expense, net of tax $ 10,674 $ 9,501 $ 11,746 As of December 31, 2022, there was $22.2 million of unrecognized compensation cost related to RSUs. Total unrecognized compensation costs will be recognized over a weighted-average period of 1.9 years. There was no unrecognized compensation cost related to stock options. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
LEASES | NOTE 11 – LEASES Leases entered into by the Company are primarily for retail stores in certain U.S. states and Canadian provinces. Leases classified as finance leases were immaterial to the Company as of December 31, 2022. Operating leases expire at various times through 2033. Operating leases are included in "Right of use asset - operating leases" and "Lease liability - operating leases" in the Consolidated Balance Sheets. Operating lease costs are included in "Occupancy" in the Consolidated Statement of Operations. The majority of leases have an original term up to five years plus renewal options under similar terms. The following table summarizes the operating lease costs and other information for the years ended December 31, 2022, 2021 and 2020 (in thousands): Year Ended December 31, 2022 2021 2020 Operating lease costs: Third-Party $ 32,538 $ 31,197 $ 30,828 Related-Party 2,282 3,394 3,386 Total operating lease costs (1) $ 34,820 $ 34,591 $ 34,214 Cash paid for amounts included in the measurement of operating lease liabilities $ 28,414 $ 36,235 $ 34,651 ROU assets (divested) obtained $ (24,749) $ 9,682 $ 18,847 Weighted average remaining lease term - Operating leases 4.4 years 4.9 years 5.7 years Weighted average discount rate - Operating leases 7.8 % 8.3 % 9.9 % (1) Includes immaterial variable lease costs. The following table summarizes the aggregate operating lease payments that the Company is contractually obligated to make under operating leases as of December 31, 2022 (in thousands): Third-Party Related-Party Total 2023 $ 24,323 $ 616 $ 24,939 2024 17,433 632 18,065 2025 11,813 649 12,462 2026 6,686 667 7,353 2027 4,265 685 4,950 Thereafter 8,139 993 9,132 Total 72,659 4,242 76,901 Less: Imputed interest (12,878) (1,176) (14,054) Operating lease liabilities $ 59,781 $ 3,066 $ 62,847 There were no material leases entered into subsequent to the balance sheet date. |
DIVIDENDS
DIVIDENDS | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 12 – DIVIDENDS Dividend Program In February 2020, the Company initiated a dividend program which provided a quarterly dividend of $0.055 per share ($0.22 per share annualized). In May 2021, the Company increased its quarterly dividend to $0.11 per share. The table below summarizes the Company's quarterly dividends for the years ended December 31, 2022 and 2021. Dividends Paid Date of declaration Stockholders of record Date paid Dividend per share (in thousands) Q1 2022 February 4, 2022 February 18, 2022 March 1, 2022 $ 0.11 $ 4,517 Q2 2022 April 28, 2022 May 10, 2022 May 23, 2022 $ 0.11 $ 4,440 Q3 2022 August 3, 2022 August 15, 2022 August 26, 2022 $ 0.11 $ 4,453 Dividends Paid Date of declaration Stockholders of record 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 $ 0.11 $ 4,580 Q3 2021 July 28, 2021 August 9, 2021 August 19, 2021 $ 0.11 $ 4,556 Q4 2021 October 27, 2021 November 12, 2021 November 22, 2021 $ 0.11 $ 4,453 In October 2022, the Company's Board of Directors suspended the quarterly dividend. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 13 – 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. As of December 31, 2022, the Company has renamed the "U.S." reportable segment to the "U.S. Direct Lending" reportable segment. U.S. Direct Lending. As of December 31, 2022, the Company operated over 490 U.S. retail locations in 13 states. The Company provides secured and unsecured installment loan products to near-prime and non-prime consumers as well as credit insurance and other ancillary financial products. Canada Direct Lending. As of December 31, 2022, the Company operated nearly 150 stores across eight Canadian provinces and had an online presence in eight provinces and one territory. The Company provides Revolving LOC and Installment loans, which include Single-Pay loans, optional credit protection 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. Canada POS Lending. As of December 31, 2022, the Company served Canadian customers through POS financing available at over 8,400 retail locations and over 3,500 merchant partners across 10 provinces and two territories. The Company provides Revolving LOC loans and a number of other ancillary financial products. Results of operations for the year ended December 31, 2021 for Canada POS Lending represent results from the date of Flexiti's acquisition, March 10, 2021, through December 31, 2021. The following table illustrates summarized financial information concerning reportable segments (in thousands): For the Year Ended 2022 2021 2020 Revenues by segment: (1) U.S. Direct Lending $ 615,722 $ 525,962 $ 638,524 Canada Direct Lending 303,750 257,039 208,872 Canada POS Lending 106,446 34,842 — Consolidated revenue $ 1,025,918 $ 817,843 $ 847,396 Net revenues by segment: U.S. Direct Lending $ 375,144 $ 359,929 $ 408,360 Canada Direct Lending 189,183 202,042 150,225 Canada POS Lending 61,266 10,204 — Consolidated net revenue $ 625,593 $ 572,175 $ 558,585 Segment (loss) income before income taxes: U.S. Direct Lending $ (175,350) $ 47,517 $ 34,172 Canada Direct Lending 51,163 88,731 46,171 Canada POS Lending (69,975) (55,691) — Consolidated (loss) income before income taxes $ (194,162) $ 80,557 $ 80,343 Expenditures for long-lived assets by segment: U.S. Direct Lending $ 18,173 $ 13,450 $ 10,079 Canada Direct Lending 6,768 2,238 639 Canada POS Lending 20,880 7,891 — Consolidated expenditures for long-lived assets $ 45,821 $ 23,579 $ 10,718 (1) For revenue by product, see Note 2 , "Loans Receivable and Revenue." The following table provides the proportion of gross loans receivable by segment (in thousands): December 31, December 31, U.S. Direct Lending $ 773,380 $ 661,945 Canada Direct Lending 481,015 427,197 Canada POS Lending 833,438 459,176 Total gross loans receivable $ 2,087,833 $ 1,548,318 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): December 31, December 31, U.S. Direct Lending $ 13,993 $ 32,753 Canada Direct Lending 15,239 21,072 Canada POS Lending 2,725 810 Total net long-lived assets $ 31,957 $ 54,635 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. |
ACQUISITIONS AND DIVESTITURE
ACQUISITIONS AND DIVESTITURE | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS AND DIVESTITURE | NOTE 14 – ACQUISITIONS AND DIVESTITURE ACQUISITIONS First Heritage On July 13, 2022, we completed the acquisition of First Heritage, a consumer lender that provides near-prime installment loans along with customary opt-in insurance and other financial products, for a purchase price of $140.0 million in cash, subject to certain customary working capital and other adjustments. The Company began consolidating the financial results of First Heritage in the Consolidated Financial Statements on July 13, 2022 within the U.S. Direct Lending operating segment. 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-K 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. As of December 31, 2022, the areas that remain primarily relate to the valuation of certain loans receivables, intangible assets and certain tax-related balances. Amounts acquired on July 13, 2022 Assets Cash and cash equivalents $ 31,396 Restricted cash 1,933 Gross loans receivable (1) 218,011 Prepaid expenses and other 1,285 Property and equipment 345 Right-of-use assets 4,241 Intangibles, net 10,670 Total assets $ 267,880 Liabilities Accounts payable and accrued liabilities $ 4,270 Lease liabilities 4,241 Debt 170,392 Total liabilities 178,904 Net assets acquired 88,976 Total consideration paid 164,341 Goodwill $ 75,365 (1) The gross contractual loans receivables as of July 13, 2022 were $236.1 million, of which the Company estimates $18.1 million will not be collected. The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (dollars in thousands): Fair Value Useful Life Trade name $ 3,790 10.0 years Customer relationships 6,880 3.5 years Total identified intangible assets $ 10,670 Goodwill of $75.4 million represents the excess of the consideration paid over the fair value of the net tangible and intangible assets acquired. The goodwill was primarily attributable to expected synergies created with the Company’s future product offerings and the value of the combined workforce. Goodwill from this transaction is deductible for income tax purposes. The Company incurred costs related to this acquisition of $10.1 million that were recorded in "Other operating expense" in the U.S. Direct Lending operating segment in the accompanying Consolidated Statement of Operations for the year ended December 31, 2022. Heights Finance On December 27, 2021, the Company acquired 100% of the outstanding stock of Heights Finance for $360.0 million, consisting of $335.0 million in cash and $25.0 million of our common stock. Heights Finance is a consumer finance company that provides secured and unsecured Installment loans to near-prime and non-prime consumers, and offers customary opt-in insurance and other financial products across 390 branches in 11 U.S. states. The Company began consolidating the financial results of Heights Finance in the Consolidated Financial Statements on December 27, 2021 within the U.S. Direct Lending operating segment. For additional information, see Note 15, "Acquisitions" of the 2021 Form 10-K. As of December 31, 2021, the Company completed the determination of the fair values of the acquired identifiable assets and liabilities. During the year ended December 31, 2022, the Company recorded measurement period adjustments that increased goodwill by $11.8 million. The measurement period adjustment related to the fair value of the loan portfolio and would have resulted in $7.7 million of incremental interest and fee revenue during the three months ended March 31, 2022 and no impact on the 12 months ended December 31, 2022. The Company recorded a measurement period adjustment in the fourth quarter of 2022 that decreased goodwill by $3.5 million related to the final true-up of deferred tax balances after the pre-acquisition income tax returns were filed in October 2022. The Company made these measurement period adjustments to reflect the correct deferred tax balances that existed as of the acquisition date and not from events subsequent to such date. Additionally, in the fourth quarter of 2022, a measurement period adjustment was recorded related to tax filings for pre-acquisition activity which resulted in $4.2 million of income tax receivables and an increase to accounts payable for the same amount. As of December 31, 2022, the Company completed the determination of the fair values of the acquired identifiable assets and liabilities. Amounts acquired on December 27, 2021 Measurement period adjustments Amounts acquired on December 27, 2021 (as adjusted) Assets Cash and cash equivalents $ 13,564 $ — $ 13,564 Restricted cash 33,630 — 33,630 Gross loans receivable (1) 471,630 (15,379) 456,251 Income tax receivable 3,526 4,209 7,735 Prepaid expenses and other 7,410 — 7,410 Property and equipment 4,748 — 4,748 Right-of-use assets 16,111 — 16,111 Intangibles, net 11,900 — 11,900 Deferred tax asset — 2,477 2,477 Other assets 98 — 98 Total assets $ 562,617 $ (8,693) $ 553,924 Liabilities Accounts payable and accrued liabilities $ 19,186 $ 4,209 $ 23,395 Lease liabilities 16,315 — 16,315 Deferred tax liability 1,077 (1,077) — Accrued interest on debt 1,781 — 1,781 Debt 350,000 — 350,000 Total liabilities $ 388,359 $ 3,132 $ 391,491 Net assets acquired $ 174,258 $ (11,825) $ 162,433 Total consideration paid 428,115 428,115 Goodwill $ 253,857 $ 265,682 (1) The gross contractual loans receivables as of December 27, 2021 were $485.4 million, of which the Company estimates $29.1 million will not be collected. 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 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 provides the Company capability and scale opportunity in Canada’s credit card and POS financing markets. The Company began consolidating the financial results of Flexiti in the Consolidated Financial Statements on March 10, 2021. Flexiti generated $34.8 million of revenue and incurred $50.9 million of operating expenses during the period March 10 through December 31, 2021. This 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 their estimates of fair value available. The following table presents the purchase price allocation recorded in the Company’s 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. During the year ended December 31, 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 first quarter of 2021 when the Company acquired Flexiti. 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 December 31, 2021, the Company completed the determination of the fair values of the acquired identifiable assets and liabilities. 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 December 31, 2022, the estimated value of the contingent cash consideration increased to $16.9 million. Refer to Note 5, "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 ending July 2023. Refer to Note 11, "Share-based Compensation" for further information related to these RSUs. The Company incurred costs related to this acquisition of $3.3 million that were recorded in "Other operating expense" in the U.S. Direct Lending segment in the accompanying Consolidated Statement of Operations for the year ended December 31, 2022. Ad Astra On January 3, 2020, the Company acquired 100% of the outstanding stock of Ad Astra, a related party, 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 Legacy U.S. Direct Lending Business that are in later-stage delinquency. The Company began consolidating the financial results of this acquisition in Consolidated Financial Statements on January 3, 2020. Prior to the acquisition, and for the year ended December 31, 2019, Ad Astra incurred $15.5 million of costs that were reflected in "Direct operations," consistent with the presentation of other internal collection costs. Subsequent to the acquisition, Ad Astra incurred $10.0 million and $9.6 million of operating expense during the years ended December 31, 2021 and 2020, respectively. 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 their estimates of fair value available. During March 2020, the Company completed the determination of the fair values of the acquired identifiable assets and liabilities. 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. In January 2023, the Company ceased operations of Ad Astra. Legacy U.S. Direct Lending Business On July 8, 2022, the Company completed the divestiture of its Legacy U.S. Direct Lending Business to Community Choice Financial, for total sale proceeds of $349.2 million, net of working capital adjustments, comprised of $314.2 million of cash received at close and $35.0 million in cash payable in monthly installment payments over the subsequent 12 months. The divestiture resulted in a gain of $68.4 million for the year ended December 31, 2022, which was recorded in "Gain on sale of business" on the Consolidated Statement of Operations. Per ASC 205, the sale of the business is not classified as discontinued operations in the Company’s operations or financial results. The following table presents the amounts attributable to each category recorded in the Company’s Consolidated Balance Sheet as of the date of divestiture of the Legacy U.S. Direct Lending Business (in thousands): July 8, 2022 Assets Cash, cash equivalents and restricted cash $ 21,292 Loans receivable 162,147 Right of use asset 39,326 Goodwill 91,131 Other assets (1) 30,690 Total assets $ 344,586 Liabilities Accounts payable and accrued liabilities $ (8,947) Right of use liability (43,433) Liability for losses on CSO lender-owned consumer loans (5,628) Other long term liabilities (2) (5,815) Total liabilities (63,823) Net assets sold 280,763 Total proceeds 349,207 Total pretax gain on sale of business $ 68,444 (1) Includes income tax receivable, property and equipment, intangibles, deferred tax assets and other assets. (2) Includes deferred revenue, income taxes payable, deferred tax liability and other long-term liabilities The Legacy U.S. Direct Lending Business had pre-tax net income of $60.7 million year ended December 31, 2022 and $140.2 million for the year ended December 31, 2021. Pre-tax net income is comprised of net revenue and expenses directly related to the Legacy U.S. Direct Lending Business, which does not include certain costs recorded in the U.S. Direct Lending operating segment that are not classified as disposed of, such as interest expense on the 7.50% Senior Secured Notes and certain corporate expenses. |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED-PARTY TRANSACTIONS | NOTE 15 – RELATED PARTY TRANSACTIONS In November 2021, the Company entered into a Share Repurchase Agreement with a trust advised by a director and greater than 10% owner of the Company. See Note 23 , "Share Repurchase Program " for further information. The Company has historically used Ad Astra as its third-party collection service for the Legacy U.S. Direct Lending Business. The Company acquired Ad Astra from the Company's founders on January 3, 2020. See Note 1 4 - "Acquisitions and Divestiture " for further information. Prior to the acquisition, the Company generally referred loans that were between 91 and 121 days delinquent to Ad Astra for collections and Ad Astra earned a commission fee equal to 30% of any amounts successfully recovered. The Company ceased Ad Astra operations in January 2023. The Company historically entered into several lease agreements for its corporate office and stores in which the Company operated, with several real estate entities that are owned by one or more of the founders of the Company. These leases are discussed in Note 1 1 , "Leases." |
PREPAID EXPENSES AND OTHER
PREPAID EXPENSES AND OTHER | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER | NOTE 16 – PREPAID EXPENSES AND OTHER Components of Prepaid expenses and other assets were as follows (in thousands): December 31, 2022 December 31, 2021 Settlements and collateral due from third-party lenders (1) $ — $ 5,465 Fees receivable from customers under CSO programs (1) — 8,412 Prepaid expenses 13,963 16,243 Other assets 39,094 11,918 Total prepaid expenses and other $ 53,057 $ 42,038 (1) All balances in connection with the CSO programs were disposed of on July 8, 2022 upon the completion of the divestiture of the Legacy U.S. Direct Lending Business. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 17 – PROPERTY AND EQUIPMENT The classification of property and equipment was as follows (in thousands): December 31, 2022 December 31, 2021 Leasehold improvements $ 52,031 $ 122,049 Furniture, fixtures and equipment 44,019 43,276 Property and equipment, gross 96,050 165,325 Accumulated depreciation and amortization (64,093) (110,690) Property and equipment, net $ 31,957 $ 54,635 |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | NOTE 18 – ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Components of Accounts payable and accrued liabilities were as follows (in thousands): December 31, 2022 December 31, 2021 Trade accounts payable $ 14,100 $ 43,094 Money orders payable 2,112 3,460 Accrued taxes, other than income taxes 1,248 1,053 Accrued payroll and fringe benefits 16,487 41,658 Other accrued liabilities 39,880 32,169 Total accounts payable and accrued liabilities $ 73,827 $ 121,434 |
BENEFIT PLANS
BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
BENEFIT PLANS | NOTE 19 – BENEFIT PLANS In 2015, the Company instituted a nonqualified deferred compensation plan that provides certain employees with the opportunity to elect to defer base salary and performance-based compensation, which, upon such election, will be credited to the participant’s deferred compensation account. Participant contributions are fully vested at all times. Each deferred compensation account is invested in one or more investment funds made available by the Company and selected by the participant. The Company may make discretionary contributions to the individual deferred compensation accounts, with the amount, if any, determined annually by the Company. The Company's contributions vest over three years. Each vested deferred compensation account will be paid out in either a lump sum or annual installments over a five In 2013, the Company instituted a Registered Retirement Savings Plan (“RRSP”) which covers all Canadian employees. The Company matches the employee contribution at a rate of 50% of the first 6% of compensation contributed to the RRSP. Employee contributions vest immediately. Employer contributions vest 50% after one year and 100% after two years. In March 2021, the Company acquired Flexiti and instituted a RRSP which covers all full-time, permanent Canadian employees. For contact center employees, the Company matches the employee contribution at a rate of 50% of the first 6%of compensation contributed to the RRSP. For corporate employees, the Company matches the employee contribution at a rate of 100% of the first 6% of compensation contributed to the RRSP. Employee contributions vest immediately. Employer contributions vest 100% after one year of plan membership. The Company's combined contributions to these two RRSPs were $0.5 million, $0.4 million and $0.3 million as of December 31, 2022, 2021 and 2020, respectively. In 2010, the Company instituted a 401(k) retirement savings plan which covers all U.S. employees. Employees may voluntarily contribute up to 90% of their compensation to the 401(k) plan. The Company matches the employee contribution at a rate of 50% of the first 6% of compensation contributed to the plan. Employer contributions vest one-third for each of the first three years of employment until fully vested after three years of employment. The Company also provides a 401(k) plan covering all full-time employees, whereby employees can invest their gross pay up to 90% of their compensation by the 401(k) plan. The Company makes a matching contribution in an amount equal to: (i) 100% of the first 3% of an employee’s gross income contributed to the plan, plus (ii) 50% of the next 2% of an employee’s amount of the employee contributions that exceed 3% of gross pay but that do not exceed 5% of gross pay. The Company's combined contributions to these three plans were $3.0 million, $1.7 million and $1.7 million for the years ended December 31, 2022, 2021 and 2020, respectively. The Company owns life insurance policies on plan beneficiaries as an informal funding vehicle to meet future benefit obligations. These policies are recorded at their cash surrender value and are included in other assets. Income generated from policies is recorded in "Salaries and benefits" on the Consolidated Statement of Operations. Refer to Note 5 , " Fair Value Measurements " for additional information. |
CREDIT SERVICE ORGANIZATION
CREDIT SERVICE ORGANIZATION | 12 Months Ended |
Dec. 31, 2022 | |
Guarantees [Abstract] | |
CREDIT SERVICE ORGANIZATION | NOTE 20 – CREDIT SERVICE ORGANIZATION As a result of the sale of the Legacy U.S. Direct Lending Business on July 8, 2022, the Company no longer guarantees loans originated by third-party lenders through CSO programs. The Company will continue to present these loans in the paragraphs that follow based on historical practice and for comparability purposes. Refer to Note 14, "Acquisitions and Divestiture" for additional information. The CSO fee receivables balance was $5.2 million at December 31, 2021 and is reflected in "Prepaid expenses and other" in the Consolidated Balance Sheets. The Company bore the risk of loss through its guarantee to purchase customer loans that were charged-off. The terms of these loans ranged up to six months. See Note 1, "Summary of Significant Accounting Policies and Nature of Operations" for further details of the Company's accounting policy. As of December 31, 2021, the incremental maximum amount payable under all such guarantees was $38.4 million. This liability is not included in the Company's Consolidated Balance Sheets. The Company held no collateral in respect of the guarantees. The Company estimated a liability for losses associated with the guaranty provided to the CSO lenders, which was $6.9 million at December 31, 2021. This liability is reflected in "Liability for losses on CSO lender-owned consumer loans" in the Consolidated Balance Sheets. The Company placed $5.5 million in collateral accounts for the benefit of lenders for the year ended December 31, 2021 which is reflected in "Prepaid expenses and other" in the Consolidated Balance Sheets. The balances required to be maintained in these collateral accounts varied by lender, typically based on a percentage of the outstanding loan balances held by the lender. The percentage of outstanding loan balances required for collateral was negotiated between the Company and each lender. Deferred revenue associated with the CSO program was immaterial as of December 31, 2021 and there were no costs to obtain, or costs to fulfill, capitalized under the program. See Note 2 , "Loans Receivable and Revenue" |
RESTRUCTURING AND STORE CLOSURE
RESTRUCTURING AND STORE CLOSURES | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
OTHER CHARGES | NOTE 21 – RESTRUCTURING AND STORE CLOSURES 2022 Restructuring On October 5, 2022, our Board of Directors approved restructuring actions to reduce operating expenses through store closures and headcount reductions in both the U.S. and Canada, and the elimination of duplicative corporate office functions in the U.S. Both the workforce reduction and store closures were aimed at reducing duplicative corporate functions and stores with overlapping customer populations as a result of our acquisitions of Heights Finance in December of 2021 and First Heritage in July of 2022. For the year ended December 31, 2022, we incurred $16.0 million of expense related to our restructuring actions, of which $7.9 million relates to employee termination benefits resulting from the workforce reduction of approximately 150 employees, and $8.2 million in lease abandonment costs resulting from the closure of 89 stores in the U.S. and Canada. The following table shows the total restructuring costs incurred during the year ended December 31, 2022 (in thousands): Employee Termination Benefits Lease Exit Costs Total Restructuring Costs Salaries and Benefits $ 6,601 $ — $ 6,601 Direct Operations 1,266 — 1,266 Other Operating Expense — 8,171 8,171 Total $ 7,867 $ 8,171 $ 16,038 The following table shows the total amount incurred and liability, which is recorded in accounts payables and other accrued liabilities in the Consolidated Balance Sheets, for restructuring-related costs as of December 31, 2022: Total Restructuring Costs Accrued restructuring costs as of October 5, 2022 $ — Restructuring costs incurred during the year ended December 31, 2022 $ 16,038 Amount paid during the year ended December 31, 2022 $ (11,292) Accrued restructuring costs as of December 31, 2022 $ 4,746 2021 Store Closures The Company closed or did not renew leases for 49 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 stores 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 $12.7 million of total one-time charges associated with the U.S. Direct Lending store closures during the year ended December 31, 2021 as follows: (in thousands) Year Ended December 31, 2021 (1) Store closure costs Severance and employee costs $ 3,943 Lease termination costs 1,710 Net accelerated depreciation and write-off of ROU assets and lease liabilities 7,064 Total store closure costs $ 12,717 (1) During the year ended December 31, 2021, the Consolidated Statement of Operations included $3.9 million of store closure costs recorded within "Salaries and benefits" and $8.7 million recorded within "Other operating expense." |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | NOTE 22 – DISCONTINUED OPERATIONS On February 25, 2019, in accordance with the provisions of the U.K. Insolvency Act 1986 and as approved by the Boards of Directors of the U.K. Subsidiaries, insolvency practitioners from KPMG were appointed as Administrators for the U.K. Subsidiaries. The effect of the U.K. Subsidiaries’ entry into administration was to place their management, affairs, business and property of the U.K. Subsidiaries under the direct control of the Administrators. Accordingly, the Company deconsolidated the U.K. Subsidiaries, which comprised the U.K. reportable operating segment, as of February 25, 2019 and classified them as Discontinued Operations for all periods presented. The following table presents the results of operations of the U.K. Subsidiaries, which meet the criteria of Discontinued Operations and, therefore, are excluded from the Company's results of continuing operations (in thousands): For the Year Ended December 31, 2020 Revenue $ — Provision for losses — Net revenue — Cost of providing services Advertising — Non-advertising costs of providing services — Total cost of providing services — Gross margin — Operating expense (income) Corporate, district and other expenses — Interest income — Gain on disposition (1,714) Total operating income (1,714) Pre-tax income from operations of discontinued operations 1,714 Income tax expense related to disposition 429 Net income from discontinued operations $ 1,285 For the years ended December 31, 2022 and 2021, the Consolidated Statements of Operations were not impacted by the U.K. Subsidiaries as there was no activity during those periods. As of December 31, 2022 and 2021, the Consolidated Balance Sheets were not impacted by the U.K. Subsidiaries as all balances were written off when the U.K. segment entered into administration during the first quarter of 2019. The following table presents cash flows of the U.K. Subsidiaries (in thousands): 2020 Net cash provided by discontinued operating activities $ 1,714 Net cash used in discontinued investing activities — Net cash used in discontinued financing activities — For the years ended December 31, 2022 and 2021, the Consolidated Statements of Cash Flows were not impacted by the U.K. Subsidiaries as there was no activity during those periods. |
SHARE REPURCHASE PROGRAM
SHARE REPURCHASE PROGRAM | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
SHARE REPURCHASE PROGRAM | NOTE 23 – SHARE REPURCHASE PROGRAM In February 2022, the Company's Board of Directors authorized a new share repurchase program for the repurchase of up to $25.0 million of CURO common stock. There were no repurchases under this program as of December 31, 2022. Repurchases are at the Company's discretion and can continue until completed or terminated. The Company expects any repurchases to be made from time-to-time in the open market and/or in privately negotiated transactions at the Company's discretion, subject to market conditions and other factors. Any repurchased shares will be available for use in connection with equity plans and for other corporate purposes. In May 2021, the Company's Board of Directors authorized a share repurchase program for up to $50.0 million of its common stock. The program commenced in June 2021 and was completed in February 2022. The table below summarizes share repurchase activity in the $50.0 million repurchase program during the years ended December 31, 2022 and December 31, 2021 (in thousands, except for per share amounts and number of share amounts): For the Year Ended December 31, 2022 For the Year Ended December 31, 2021 Total number of shares repurchased 824,477 2,218,333 Average price paid per share $ 15.20 $ 16.86 Total value of shares repurchased $ 12,530 $ 37,400 In November 2021, the Company entered into a Share Repurchase Agreement with the Leah M. Faulkner 2017 Dynasty Trust ("Seller"), a Trust advised by a Director and greater than 10% owner of the Company. Pursuant to the Share Repurchase Agreement, the Company repurchased 500,000 shares of its common stock, par value $0.001 per share, owned by the Seller, in a private transaction at a purchase price equal to $18.10 per share of common stock. This transaction occurred outside of the share repurchase program authorized in May 2021. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 24 – SUBSEQUENT EVENTS Curo Canada Revolving Credit Facility On January 6, 2023, the C$5 million Curo Canada Revolving Credit Facility was cancelled in its entirety. Ad Astra — Ceased Operations We utilized Ad Astra as our debt collector for delinquent loans originated by Legacy U.S. Direct Lending Business. Loans were typically assigned to Ad Astra after 91 days without a scheduled payment. Upon the sale of the Legacy U.S. Direct Lending Business in July 2022, Ad Astra continued to service these loans as part of the Transition Services Agreement with Community Choice Financial. In January 2023, the Company ceased Ad Astra's operations. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
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 full-spectrum consumer credit lender serving U.S. and Canadian customers for over 25 years. Our roots in the consumer finance market run deep. We have worked diligently to provide customers a variety of convenient, easily accessible financial services. Our decades of alternative data power a hard-to-replicate underwriting and scoring engine, mitigating risk across the full spectrum of credit products. In the U.S., CURO operates under several principal brands, including "Covington Credit," "Heights Finance," "Quick Credit," "Southern Finance" and "First Heritage Credit." Until July 2022, CURO also operated under "Speedy Cash," "Rapid Cash" and "Avio Credit." As of December 31, 2022, our store network consisted of 496 U.S. retail locations across 13 states. In Canada, we operate under “Cash Money” and “LendDirect” direct lending brands and the "Flexiti" point-of-sale brand. As of December 31, 2022, we operated our direct lending and online services in eight Canadian provinces and one Canadian territory. Our point-of-sale operations are available at over 8,400 retail locations and over 3,500 merchant partners across 10 provinces and two territories. Following the acquisitions in 2022 and 2021, the Company reports Flexiti operations as the "Canada POS Lending" segment and First Heritage and Heights Finance operations within the U.S. Direct Lending segment throughout this 2022 Form 10-K. Refer to Note 1 3 , "Segment Reporting " for further information. The Company has prepared the accompanying audited Consolidated Financial Statements in accordance with U.S. GAAP. The Company will continue to take advantage of the scaled disclosure requirements permitted by the SEC as a Smaller Reporting Company (SRC) for the periods presented. SRC status is determined on an annual basis as of the last business day of the most recently completed second fiscal quarter. Under these rules, the Company met the definition of an SRC as of June 30, 2022 and has elected to continue to report as an SRC. The Company will reevaluate its status as of June 30, 2023. Revised Revenue Presentation Beginning in the first quarter of 2022, the Company started reporting "Interest and fees revenue," "Insurance premiums and commissions" and "Other revenue" in place of the previously reported "Revenue" line item in the Consolidated Statements of Operations. Prior period amounts have been reclassified to conform with current period presentation. Revised Operating Expense Presentation Beginning in the fourth quarter of 2021, the Company revised its presentation of operating expenses in the Consolidated Statement of Operations. Where applicable, prior period amounts have been reclassified to conform to the current period presentation. These changes had no impact on the Company's previously reported consolidated results of operations or financial position. U.K. Segment Financial Information Recast for Discontinued Operations On February 25, 2019, the Company placed its U.K. segment into administration, which resulted in treatment of the U.K. segment as discontinued operations for all periods presented. Throughout this report, financial information for all periods are presented on a continuing operations basis, excluding the results and positions of the U.K. segment. See Note 22, "Discontinued Operations" |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements reflect the accounts of CURO and its direct and indirect subsidiaries, including the divestiture of the Legacy U.S.Direct Lending Business on July 8, 2022 and the acquisition of First Heritage on July 13, 2022. Refer to Note 14, "Acquisitions and Divestiture" for further disclosures related to these acquisitions. Intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the 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 |
Revenue Recognition | Revenue Recognition As a result of the sale of the Legacy U.S. Direct Lending Business on July 8, 2022, the Company no longer guarantees loans originated by third-party lenders through CSO programs. As such, the Company's results of operations discussed below only include the results from the CSO program through July 8, 2022. Refer to Note 14, "Acquisitions and Divestiture" for additional information. CURO offers a broad range of consumer finance products including Revolving LOC, Unsecured Installment, Secured Installment and Single-Pay loans. Revenue in the Consolidated Statements of Operations includes: interest income, Merchant Discount Revenue ("MDR"), finance charges, CSO fees, late fees, insurance protection fees, non-sufficient funds fees and other ancillary fees. Product offerings differ and are governed by laws in each jurisdiction. Revolving 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. Revolving LOC loans have a periodic payment that is a fixed percentage of the customer’s outstanding loan balance, and there is no defined loan term. The Company records revenue from Revolving LOC loans on a simple-interest basis. Accrued interest and fees are included in gross loans receivable in the Consolidated Balance Sheets. Installment revenue is comprised of both unsecured and secured installment revenue, which 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. Installment loans are fully amortizing, with a fixed payment amount, which includes principal and accrued interest, due each period during the loan term. The loan terms for Installment loans can range up to 60 months depending on state or provincial regulations. The Company records revenue from Installment loans on a simple-interest basis. Accrued interest and fees are included in gross loans receivable in the Consolidated Balance Sheets as earned. CSO fees are recognized ratably over the term of the loan as earned. Secured Installment loans are similar to Unsecured Installment loans but are secured by a clear vehicle title or security interest in the vehicle. Single-Pay loan revenue, a component of installment revenue, consists primarily of unsecured, short-term, small denomination loans, with a small portion being auto title loans, which allow a customer to obtain a loan using their car as collateral. Revenues from Single-Pay loan products are recognized under the Installment revenue product. Revenues are recognized each period on a constant-yield basis ratably over the term of each loan as earned. The Company defers recognition of the unearned fees the Company expects to collect based on the remaining term of the loan at the end of each reporting period. Insurance premiums, commissions and other revenue includes revenue from a number of financial products such as check cashing, demand deposit accounts, optional credit protection insurance and money transfer services. Check cashing fees, money order fees and other fees from ancillary products and services are generally recognized at the POS when the transaction is completed. The sale of credit protection insurance and additional insurance the Company now offers as a result of the acquisition of Heights Finance and First Heritage are recognized ratably over the term of the loan. The Company is required to maintain an actuarial determined reserve for Heights Finance insurance products due to its reinsurance activities. As of December 31, 2022, the reserve was $1.9 million and is reported in "Accounts payable and accrued liabilities" in the Consolidated Balance Sheet. Merchant Discount Revenue Following the acquisition of Flexiti, the Company recognizes MDR, which represents a fee charged to merchant partners to facilitate customer purchases at merchant locations. The fee is recorded as unearned revenue when received and recognized over the expected loan term. The amount of fees charged, or merchant discount, is generally deducted from the payment to the merchant at the time a customer enters into a POS transaction with the merchant. The merchant discount rate is individually |
Cash and cash equivalents and Restricted Cash | Cash and cash equivalents The Company considers deposits in banks and short-term investments with original maturities of 90 days or less as cash and cash equivalents. Restricted Cash The Company's restricted cash includes deposits in collateral accounts with financial institutions, consumer deposits related to prepaid cards and checking account programs and funds related to loan facilities disclosed in Note 3 , "Variable Interest Entities." In connection with insurance products offered by Heights Finance, certain of the Company's cash is restricted by agreements with financial institutions to meet certain state licensing requirements as required under various reinsurance agreements. As of December 31, 2022, our restricted cash related balance included $21.4 million for the Heights Finance reinsurance program and $52.3 million held for funding facilities. See Note 3, "Variable Interest Entities" and Note 6, "Debt" for further discussion on these facilities. |
Consumer Loans Receivable, Current and Past-Due Loans Receivable, Allowance for Loan Losses, and Credit Services Organization | Consumer Loans Receivable Consumer loans receivable are net of the allowance for loan losses, unearned insurance, unearned interest and fees and unamortized fair value discount for acquired loans receivable and are comprised of Revolving LOC, Unsecured Installment, Secured Installment and Single-Pay loans. Revolving LOC loans are lines of credit without a specified maturity date. Revolving LOC loans require periodic payments of principal and interest that is a fixed percentage of the customer's outstanding loan balance. Customers in good standing may draw against their line of credit, repay with minimum, partial or full payments and redraw as needed. Unsecured Installment and Secured Installment loans are fully amortizing loans with a fixed payment amount due each period during the term of the loan. The loan terms for Unsecured Installment and Secured Installment loans can range up to 60 months, depending on state regulations. Secured Installment loans are typically collateralized by titled vehicles. Revolving LOC loans are primarily unsecured. The product offerings differ by jurisdiction and are governed by the laws in each jurisdiction. Single-Pay loans are primarily unsecured, short-term, small denomination loans, with a small portion being auto title loans, which allow a customer to obtain a loan using their car as collateral. A Single-Pay loan transaction consists of providing a customer cash in exchange for the customer’s personal check or ACH authorization (in the aggregate amount of that cash plus a service fee), with an agreement to defer the presentment or deposit of that check or scheduled ACH withdrawal until the customer’s next payday, which is typically either two weeks or a month from the loan’s origination date. An auto title loan allows a customer to obtain a loan using the customer’s car as collateral for the loan, with a typical loan term of 30 days. Single-Pay loans are classified as Installment loans. Current and Past-Due Loans Receivable CURO classifies loans receivable as either current or past due. Single-Pay loans are considered past-due if a customer misses a scheduled payment, at which point the loan is charged-off. If a U.S. Direct Lending customer misses a scheduled payment for Revolving LOC or Installment loans, the entire customer balance is classified as past-due and is charged-off when the loan has been contractually past-due for 180 consecutive days. If a Canada Direct Lending or Legacy U.S. Direct Lending customer misses a scheduled payment for Revolving LOC or Installment loans, the entire customer balance is classified as past-due and is charged-off when the loan has been contractually past-due for 90 consecutive days. Canada POS Lending loans historically were charged-off when the loan was contractually past due for 180 days. Beginning January 1, 2023, Canada Direct Lending loans will have the same charge-off policy as U.S. Direct Lending loans. All loan receivables charge-off when notice of customer bankruptcy or consumer proposal has been received. Allowance for Loan Losses The Company maintains an ALL for loans and interest receivable at a level estimated to be adequate to absorb incurred losses based primarily on the Company's analysis of historical loss or charge-off rates for loans containing similar risk characteristics. The ALL on gross loans receivables reduces the outstanding gross loans receivables balance in the Consolidated Balance Sheets. Changes in the ALL, net of charge-offs and recoveries, are recorded as “Provision for losses” in the Consolidated Statements of Operations. In addition to an analysis of historical loss and charge-off rates, the Company also considers delinquency trends and any macro-economic conditions that it believes may affect portfolio losses. If a loan is deemed to be uncollectible before it is fully reserved based on received information (e.g., receipt of customer bankruptcy notice or death), the Company charges off the loan at that time. Qualitative factors such as the impact of new loan products, changes to underwriting criteria or lending policies, new store development or entrance into new markets, changes in jurisdictional regulations or laws, recent credit trends and general economic conditions impact management’s judgment on the overall adequacy of the ALL. Any recoveries on loans previously charged to the ALL are credited to the ALL when collected. Troubled Debt Restructuring 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. 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 ALL 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. 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 remain on non-accrual status until payment or charged-off. Payments are applied initially to any outstanding past due loan balances prior to current loan balances. Not all past-due payments will bring a loan off non-accrual status. The Company's policy for determining past due status is consistent with the accounts receivable aging disclosure. Credit Services Organization As a result of the sale of the Legacy U.S. Direct Lending Business on July 8, 2022, the Company no longer guarantees loans originated by third-party lenders through CSO programs. Refer to Note 14, "Acquisitions and Divestiture" for additional information. The paragraphs below outline the Company's accounting for the CSO program through July 8, 2022, the date of the divestiture of the CSO program. Through the CSO programs, the Company acted as a CSO/CAB on behalf of customers in accordance with applicable state laws. The Company offered loans through CSO programs in stores and online in the state of Texas. As a CSO, CURO earned revenue by charging the customer a CSO fee for arranging an unrelated third-party to make a loan to that customer. When a customer executed an agreement with CURO under the CSO programs, the Company agreed, for a CSO fee payable to the Company by the customer, to provide certain services to the customer, one of which was to guarantee the customer’s obligation to repay the loan to the third-party lender. CSO fees were calculated based on the amount of the customer's outstanding loan. For CSO loans, each lender was responsible for providing the criteria by which the customer’s application was underwritten and, if approved, determining the amount of the customer loan. The Company was, in turn, responsible for assessing whether or not to guarantee the loan. This guarantee represented an obligation to purchase loans if they were charged-off. CURO estimated a liability for losses associated with the guaranty provided to the CSO lenders using assumptions and methodologies similar to the ALL, which was recognized for the consumer loans and included as "Liability for losses on CSO lender-owned consumer loans" on the Consolidated Balance Sheets. For services provided under the CSO programs, the Company received payments from customers on their scheduled loan repayment due dates. The CSO fee was earned ratably over the term of the loan as the customers made payments. If a loan was paid off early, no additional CSO fees were due or collected. Since CSO loans were made by a third-party lender, they were not included in the Company's Consolidated Balance Sheets as loans receivable. CSO fees receivable were included in “Prepaid expenses and other” in the Consolidated Balance Sheets. The Company received cash from customers for these fees on their scheduled loan repayment due dates. For additional information on CSO loans, refer to Note 20 , "Credit Services Organization." |
Variable Interest Entities | Variable Interest Entities As part of its funding strategy and efforts to support the liquidity from sources other than the traditional capital market sources, the Company established a securitization program through the Heights SPV, First Heritage SPV, Flexiti SPV, Flexiti Securitization and Canada SPV facilities. See Note 3 , "Variable Interest Entities" and Note 6 , "Debt" for further discussion on these facilities. The Company transfers certain consumer loan receivables to the VIEs that issues term notes backed by the underlying consumer loan receivables which are serviced by other wholly-owned subsidiaries. For each facility, the Company has the ability to direct the activities of the VIE that most significantly impact the economic performance of the entities as the servicer of the securitized loan receivables. Additionally, CURO has the right to receive residual payments, which exposes the Company to the potential for significant losses and returns. Accordingly, the Company determined that they are the primary beneficiary of the VIEs and are required to consolidate them. |
Derivatives | DerivativesAs foreign currency exchange rates change, translation of the financial results of the Canadian operations into U.S. Dollars are impacted. Operations in Canada represent a significant portion of total operations, and material changes in the currency exchange rates as between these two countries could have a significant impact on the Company's consolidated financial condition, results of operations or cash flows. The Company may elect to purchase derivatives to hedge exposures that would qualify as a cash flow or fair value hedge. The Company records derivative instruments at fair value as either an asset or liability on the Consolidated Balance Sheet. Changes in the derivative instruments' intrinsic value, to the extent that they are effective as a hedge, are recorded in Other comprehensive income (loss). For derivatives that qualify and have been designated as cash flow or fair value hedges for accounting purposes, the changes in fair value have no net impact on earnings, to the extent the derivative is considered perfectly effective in achieving offsetting changes in fair value or cash flows attributable to the risk being hedged, until the hedged item is recognized in earnings (commonly referred to as the “hedge accounting” method). During the year ended December 31, 2022, the Company entered into interest rate swaps on both the Flexiti SPV and Flexiti Securitization facilities. |
Property and Equipment | Property and Equipment Property and equipment is carried at cost less accumulated depreciation and amortization, except for property and equipment accounted for as part of a business combination, which is carried at fair value as of the acquisition date less accumulated depreciation and amortization. Expenditures for significant additions and improvements are capitalized. Maintenance repairs and renewals, that do not materially add to the fixed asset's value or appreciably prolong its life, are charged to expense as incurred. Gains and losses on dispositions of property and equipment are included in results of operations. The estimated useful lives for furniture, fixtures and equipment are five years to seven years. The estimated useful lives for leasehold improvements can vary from five years to 15 years, not to exceed the remaining term of the lease. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the depreciable or amortizable assets. |
Business Combination Accounting | Business Combination Accounting Business combination accounting requires that the Company determines the fair value of all assets acquired, including identifiable intangible assets, liabilities assumed and contingent consideration issued in a business combination. The cost of the acquisition is allocated to these assets and liabilities in amounts equal to the estimated fair value of each asset and liability as of the acquisition date, and any remaining acquisition cost is classified as goodwill. This allocation process requires extensive use of estimates and assumptions, including estimates of future cash flows to be generated by the acquired assets. The Company engages third-party appraisal firms to assist in fair value determination when appropriate. The acquisitions may also include contingent consideration, or earn-out provisions, which provide for additional consideration to be paid to the seller if certain conditions are met in the future. These earn-out provisions are estimated and recognized at fair value at the acquisition date based on projected earnings or other financial metrics over specified future periods. These estimates are reviewed during each subsequent reporting period and adjusted based upon actual results. Acquisition-related costs for potential and completed acquisitions are expensed as incurred and included in "Other operating expense" in the Consolidated Statements of Operations. Goodwill is initially valued based on the excess of the purchase price of a business combination over the fair value of the acquired net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Intangible assets other than goodwill are initially valued at fair value. When appropriate, the Company utilizes independent valuation experts to advise and assist in determining the fair value of the identified intangible assets acquired in connection with a business acquisition and in determining appropriate amortization methods and periods for those intangible assets. Any contingent consideration included as part of the purchase is recognized at its fair value on the acquisition date. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination at the time of acquisition. In accordance with ASC 350, Intangibles - Goodwill and Other ("ASC 350"), the Company performs impairment testing for goodwill and indefinite-lived intangible assets annually, as of October 1st, or whenever indicators of impairment exist. An impairment would occur if the carrying amount of a reporting unit exceeded the fair value of that reporting unit. These events or circumstances could include a significant change in the business climate, a change in strategic direction, legal factors, operating performance indicators, a change in the competitive environment, the sale or disposition of a significant portion of a reporting unit or economic outlook. The Company recorded an impairment loss on goodwill for the U.S. Direct Lending and Canada POS Lending reporting units during the year-ended December 31, 2022. No impairment was recorded on the Canada Direct Lending during the year-ended December 31, 2022 or any reporting unit for the year ended December 31, 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. Management uses both the income approach and market approach to complete its annual goodwill valuation. The income approach uses future cash flows and estimated terminal values for the Company that are discounted using a market participant perspective to determine the fair value. The income approach includes assumptions about revenue growth rates, operating margins and terminal growth rates discounted by an estimated weighted-average cost of capital. The market approach calculates the fair value of the invested capital based on the Company’s market capitalization and a comparison to guideline public companies multiples. When performing the two-step process, if the fair value of the reporting unit exceeds it carrying value, no further analysis or write-down of goodwill is required. In the event the estimated fair value of a reporting unit is less than the carrying value, the Company would recognize an impairment loss equal to such excess, which could significantly and adversely impact reported results of operations and stockholders’ equity. See Note 4 , "Goodwill " for additional information. Intangible Assets The Company's identifiable intangible assets, resulting from business combinations and internally developed capitalized software, consist of trade names, developed technology, merchant relationships, customer relationships and computer software. See Note 14, "Acquisitions and Divestiture" for additional information on intangible assets resulting from business combinations. The Company applied the guidance under ASC 350 to software that is purchased or internally developed. Under ASC 350, eligible internal and external costs incurred for the development of computer software applications, as well as for upgrades and enhancements that result in additional functionality of the applications, are capitalized to "Intangibles, net" in the Consolidated Balance Sheets. Internal and external training and maintenance costs are charged to expense as incurred or over the related service period. When a software application is placed in service, the Company begins amortizing the related capitalized software costs using the straight-line method over its estimated useful life, which ranges from three The “Cash Money” trade name was determined to be an intangible asset with an indefinite life. Intangible assets with indefinite lives are not amortized, but instead are tested annually for impairment and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset might not be recoverable. Impairment of identifiable intangible assets with indefinite lives occurs when the fair value of the asset is less than its carrying amount. If deemed impaired, the asset’s carrying amount is reduced to its estimated fair value. No indefinite life intangible impairments were recorded during the years ended December 31, 2022, 2021 or 2020. See Note 4 , "Goodwill and Intangibles " for further information. The Company's finite lived intangible assets are amortized over their estimated economic benefit period, generally from three Note 4 , "Goodwill and Intangibles" |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs consist of debt issuance costs incurred in obtaining financing. These costs are presented in the Consolidated Balance Sheets as a direct reduction from the carrying amount of associated debt, consistent with discounts or premiums. The effective interest rate method is used to amortize the deferred financing costs over the life of the Senior Secured Notes and the straight-line method is used to amortize the deferred financing costs of the SPV facilities. See Note 6 , "Debt" |
Fair Value Measurements | Fair Value Measurements The Company determines fair value measurements of financial and non-financial assets and liabilities in accordance with FASB ASC 820, Fair Value Measurements and Disclosures . This guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (also referred to as an exit price). This guidance also establishes a framework for measuring fair value and expands disclosures about fair value measurements. The standard applies whenever other standards require (or permit) assets or liabilities to be measured at fair value. See Note 5 , “Fair Value Measurements” |
Concentration Risk | Concentration Risk Financial instruments that potentially subject the Company to concentrations of credit risk primarily consist of its loans receivable. Direct Lending operations in the U.S. and Canada are subject to concentration risk at the state and province level. To the extent that laws and regulations are passed that affect the manner in which the Company conducts business in a heavily concentrated market, its financial condition, results of operations and cash flows could be adversely affected. Additionally, the Company's ability to meet its financial obligations could be negatively impacted. Revenues originated in Ontario and Texas represented approximately 29.2% and 15.3%, respectively, of the Company's consolidated revenues for the year ended December 31, 2022 and 20.2% and 21.0% , respectively, for the year ended December 31, 2021. Revenues originated in Texas, California and Ontario represented approximately 22.6%, 13.6% and 16.6%, respectively, of the Company's consolidated revenues for the year ended December 31, 2020. Following the acquisition of Heights Finance and First Heritage, which accounted for approximately $769.0 million of gross loans receivable as of December 31, 2022, the Company operates in new U.S. markets, primarily the southern and eastern states. Receivables originated in Ontario, Tennessee and Texas represented approximately 14.8%, 6.2% and 3.0%, respectively, of the Company's consolidated receivables for the year ended December 31, 2022. The Company operates its Canada POS Lending operations with various merchant partners. The Company entered into a merchant relationship with LFL in the third quarter of 2021. The revenue contribution from LFL represented approximately 5.9% of the Company's consolidated revenues for the year ended December 31, 2022 and 26.7% of the Company's consolidated receivables as of year ended December 31, 2022. The Company holds cash at major financial institutions that often exceed FDIC insured limits. The Company manages its concentration risk by maintaining cash deposits in high quality financial institutions and by periodically evaluating the credit quality of the financial institutions holding such deposits. Historically, the Company has not experienced any losses due to such cash concentration. |
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 December 31, 2022. Operating leases expire at various times through 2033. Operating leases are included in "Right of use asset - operating leases" and "Lease liability - operating leases" on the 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 rate implicit in the Company's leases typically are not readily determinable. As a result, the Company uses its estimated incremental borrowing rate, as allowed by ASC 842, 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 leases in the Company's portfolio). This rate is the theoretical rate the Company would pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term as that of the portfolio. The Company uses quoted interest rates obtained from financial institutions as an input, adjusted for Company-specific factors, to derive the incremental borrowing rate as the discount rate for the leases. As new leases are added each period, the Company evaluates whether the incremental borrowing rate has changed. If the incremental borrowing rate has changed, the Company will apply the rate to new leases if not doing so would result in a material difference to the ROU asset and lease liability presented on the Consolidated Balance Sheets. The majority of the leases have an original term up to five years plus renewal options for additional similar terms. The Consumer Price Index is used in determining future lease payments and for purposes of calculating operating lease liabilities. Lease terms may 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 Consolidated Balance Sheets. Some of the leases are with related parties and have terms similar to the non-related party leases. See Note 15 , " R elated Party Transactions " for further information. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. For additional information related to the Company's leases, refer to Note 1 1 , "Leases." |
Advertising Costs | Advertising —Advertising costs are expensed as incurred. |
Share-Based Compensation | Share-Based Compensation CURO accounts for share-based compensation expense for awards to employees and directors at the estimated fair value on the grant date. The Company determines the fair value of stock option grants using the Black-Scholes option pricing model, which requires CURO to make several assumptions including, but not limited to, the risk-free interest rate and the expected volatility of publicly traded stocks in the financial services industry. The expected option term is calculated using the average of the vesting period and the original contractual term. For RSUs, the value of the award is calculated using the closing market price of the common stock on the grant date for time-based and performance-based RSUs, and using the Monte Carlo simulation pricing model for the market-based RSUs. The Company recognizes the estimated fair value of share-based awards as compensation expense on a straight-line basis over the vesting period. The Company accounts for forfeitures as they occur for all share-based awards. In accordance with ASC 718, Compensation - Stock Compensation , the Company may choose, upon vesting of employees' RSUs, to return shares of common stock underlying the vested RSUs to the Company in satisfaction of employees' tax withholding obligations (collectively, "net-share settlements") rather than requiring shares of common stock to be sold on the open market to satisfy these tax withholding obligations. The total number of shares of common stock returned to the Company is based on the closing price of the Company's common stock on the applicable vesting date. These net-share settlements reduced the number of shares of common stock that would have otherwise been outstanding on the open market, and the cash CURO paid to satisfy the employee portion of the tax withholding obligations are reflected as a reduction to "Paid-in capital" in the Company's Consolidated Balance Sheets and Consolidated Statements of Changes in Equity. |
Income Taxes | Income Taxes A deferred tax asset or liability is recognized for the anticipated future tax consequences of temporary differences between the tax basis of assets or liabilities and their reported amounts in the financial statements and for operating loss and tax credit carryforwards. A valuation allowance is provided when, in the opinion of management, it is more likely than not that some portion or all of a deferred tax asset will not be realized. Realization of the deferred tax assets is dependent on the Company's ability to generate sufficient future taxable income and, if necessary, execution of tax planning strategies. In the event CURO determines that future taxable income, taking into consideration tax planning strategies, may not generate sufficient taxable income to fully realize net deferred tax assets, the Company may be required to establish or increase valuation allowances by a charge to income tax expense in the period such a determination is made, which may have a material impact on the Consolidated Statements of Operations. The Company measures deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which they expect those temporary differences to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date and it may have a material impact on the Consolidated Statements of Operations. CURO follows accounting guidance which prescribes a comprehensive model for how companies should recognize, measure, present and disclose in their financial statements unrecognized tax benefits for tax positions taken or expected to be taken on a tax return. Under this guidance, tax positions are initially recognized in the financial statements when it is more likely than not that the position will be sustained upon examination by the tax authorities. Such tax positions are initially and subsequently measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and all relevant facts. Application of this guidance requires numerous estimates based on available information. The Company considers many factors when evaluating and estimating tax positions and tax benefits, and the recognized tax positions and tax benefits may not accurately anticipate actual outcomes. As the Company obtains additional information, they may need to adjust the recognized tax positions and tax benefits. For additional information related to unrecognized tax benefits, see Note 8 , "Income Taxes." |
Foreign Currency Translation | Foreign Currency Translation The Canadian dollar is considered the functional currency for operations in Canada. All balance sheet accounts are translated into U.S. dollars at the exchange rate in effect at each balance sheet date. The Statements of Operations are translated at the average rates of exchange during each period. The Company has determined that certain intercompany balances are long-term in nature, and therefore, currency translation adjustments related to those accounts are recorded as a component of "Accumulated other comprehensive income (loss)" in the Statements of Stockholders' Equity. For intercompany balances that are settled on a regular basis, currency translation adjustments related to those accounts are recorded as a component of "Other operating expense" in the Consolidated Statements of Operations. |
Legal and Other Commitments and Contingencies | Legal and Other Commitments and Contingencies The Company is subject to litigation in the normal course of its business. The Company applies the provisions as defined in the guidance related to accounting for contingencies in determining the recognition and measurement of expense recognition associated with legal claims against the Company. Management uses guidance from internal and external legal counsel on the potential outcome of litigation in determining the need to record liabilities for potential losses and the disclosure of pending legal claims. Refer to Note 7 , " Commitments and Contingencies " for further information. |
Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements Not Yet Adopted ASU 2016-13 and subsequent amendments 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, ASU 2020-02 in February 2020 and ASU 2022-02 in March 2022. The amended standard changes how entities measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard replaces the current “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost and affects 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 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. The Company adopted ASU 2016-13 and the related ASUs effective January 1, 2023. Based on the December 31, 2022 loan portfolio and current expectations, the Company estimates the impact of the adoption, through a modified-retrospective approach, to cause an increase to the allowance for credit losses of $135 million and a corresponding one-time, cumulative reduction to retained earnings of $100 million (net of $35 million in taxes) in the consolidated balance sheet as of January 1, 2023. 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 SOFR. Entities can elect to not 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 FASB has recently extended the adoption date to December 31, 2024. The FASB also issued ASU 2021-01, Reference Rate Reform (Topic 848) : Scope in January 2021, which 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. As of September 30, 2022, the Company has transitioned all debt facilities from LIBOR to SOFR. ASU 2021-08 In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , which requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities in accordance with ASC 606, Revenue from Contracts with Customers . ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, and early adoption is permitted. While the Company is continuing to assess the timing of adoption and the potential impacts of ASU 2021-08, it does not expect ASU 2021-08 will have a material effect on its 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 inputs, 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). |
LOANS RECEIVABLE AND REVENUE (T
LOANS RECEIVABLE AND REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Summary of Revenue by Product | The following table summarizes revenue by product (in thousands): For the Year Ended December 31, 2022 2021 2020 Revolving LOC $ 345,813 $ 294,591 $ 249,502 Installment 559,594 449,144 538,685 Total interest and fees revenue 905,407 743,735 788,187 Insurance premiums and commissions 88,490 49,410 35,553 Other revenue 32,021 24,698 23,655 Total revenue (1) $ 1,025,918 $ 817,843 $ 847,396 (1) Includes revenue from CSO programs of $101.2 million, $167.1 million and $185.5 million for the years ended December 31, 2022, 2021 and 2020, respectively. |
Summary of Loans Receivable by Product and Related Delinquent Loans | December 31, 2022 Revolving LOC Installment (1) Total Current loans receivable $ 1,194,554 $ 649,262 $ 1,843,816 1-30 days past-due 46,956 76,709 123,665 31-60 days past-due 17,677 21,480 39,157 61-90 days past-due 12,190 14,143 26,333 91 + days past-due 13,138 41,724 54,862 Total delinquent loans receivable 43,005 77,347 120,352 Total loans receivable 1,284,515 803,318 2,087,833 Less: allowance for losses (78,815) (43,213) (122,028) Loans receivable, net $ 1,205,700 $ 760,105 $ 1,965,805 (1) Of the $803.3 million of installment receivables, $12.7 million relate to mandated extended payment options for certain Canada Single-Pay loans. December 31, 2021 Revolving LOC Installment - Company Owned (1) Total Current loans receivable $ 843,379 $ 512,207 $ 1,355,586 1-30 days past-due 35,657 58,373 94,030 31-60 days past-due 15,452 21,185 36,637 61-90 days past-due 13,397 17,146 30,543 91 + days past-due 6,228 25,294 31,522 Delinquent loans receivable 35,077 63,625 98,702 Total loans receivable 914,113 634,205 1,548,318 Less: allowance for losses (68,140) (19,420) (87,560) Loans receivable, net $ 845,973 $ 614,785 $ 1,460,758 (1) Of the $42.5 million of Single-Pay receivables, $11.3 million relate to mandated extended payment options for certain Canada Single-Pay loans. The following tables summarize loans Guaranteed by the Company under CSO programs and the related delinquent receivables (in thousands): December 31, 2021 Total Installment - Guaranteed by the Company Current loans receivable Guaranteed by the Company $ 38,102 1-30 days past-due 6,795 Delinquent loans receivable Guaranteed by the Company 1,420 Total loans receivable Guaranteed by the Company 46,317 Less: Liability for losses on CSO lender-owned consumer loans (6,908) Loans receivable Guaranteed by the Company, net $ 39,409 December 31, 2021 Total Installment - Guaranteed by the Company Delinquent loans receivable 31-60 days past-due $ 1,031 61-90 days past-due 285 91 + days past-due 104 Total delinquent loans receivable $ 1,420 |
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): For the Year Ended Revolving LOC Installment Other Total Allowance for loan losses: Balance, beginning of period $ 68,140 $ 19,420 $ — $ 87,560 Charge-offs (162,587) (221,197) (11,443) (395,227) Recoveries 27,976 85,033 1,401 114,410 Net charge-offs (134,611) (136,164) (10,042) (280,817) Provision for losses 166,414 173,810 10,042 350,266 Divestiture (2) (13,555) (13,691) — (27,246) Effect of foreign currency translation (7,573) (162) — (7,735) Balance, end of period $ 78,815 $ 43,213 $ — $ 122,028 Liability for losses on CSO lender-owned consumer loans: (1) Balance, beginning of period $ — $ 6,908 $ — $ 6,908 Decrease in liability — (1,280) — (1,280) Divestiture (2) — (5,628) — (5,628) Balance, end of period $ — $ — $ — $ — (1) All balances in connection with the CSO programs were disposed of on July 8, 2022 upon the divestiture of the Legacy U.S. Direct Lending Business. (2) Write off of the ALL or liability for losses on CSO lender-owned consumer loans related to loan balance sold or guarantees transferred from the Company on July 8, 2022 upon the divestiture of the Legacy U.S. Direct Lending Business. For the Year Ended Revolving LOC Installment Other Total Allowance for loan losses: Balance, beginning of period $ 51,958 $ 34,204 $ — $ 86,162 Charge-offs (114,827) (191,734) (3,911) (310,472) Recoveries 29,454 107,147 1,810 138,411 Net charge-offs (85,373) (84,587) (2,101) (172,061) Provision for losses 102,457 69,766 2,101 174,324 Effect of foreign currency translation (902) 37 — (865) Balance, end of period $ 68,140 $ 19,420 $ — $ 87,560 Liability for losses on CSO lender-owned consumer loans: Balance, beginning of period $ — $ 7,228 $ — $ 7,228 Decrease in liability — $ (320) — $ (320) Balance, end of period $ — $ 6,908 $ — $ 6,908 |
Summary of Outstanding TDR Receivables | 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 December 31, 2022 As of December 31, 2021 Current TDR gross receivables $ 10,169 $ 11,580 Delinquent TDR gross receivables 2,635 5,066 Total TDR gross receivables 12,804 16,646 Less: Impairment included in the allowance for loan losses (2,691) (3,632) Less: Additional allowance (660) (2,212) Outstanding TDR receivables, net of impairment $ 9,453 $ 10,802 The tables below present loans modified and classified as TDRs during the periods presented (in thousands): For the Year Ended December 31, 2022 2021 2020 Pre-modification TDR loans receivable $ 9,030 $ 16,255 $ 38,930 Post-modification TDR loans receivable 8,702 14,538 34,252 Total concessions included in gross charge-offs $ 328 $ 1,717 $ 4,678 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): For the Year Ended December 31, 2022 2021 2020 Average outstanding TDR loans receivable $ 11,065 $ 18,259 $ 20,631 Interest income recognized 5,320 18,328 17,074 Number of TDR loans 3,531 11,693 27,082 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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): December 31, December 31, Assets Restricted cash $ 52,277 $ 57,155 Loans receivable, net 1,855,824 1,228,088 Prepaid expenses and other 12,908 — Deferred tax assets 17,027 — Total Assets $ 1,938,036 $ 1,285,243 Liabilities Accounts payable and accrued liabilities $ 13,571 $ 9,886 Deferred revenue 31 106 Deferred tax liability — 269 Accrued interest 7,023 3,279 Income taxes payable 7,850 — Debt, net 1,589,380 965,072 Total Liabilities $ 1,617,855 $ 978,612 |
GOODWILL AND INTANGIBLES (Table
GOODWILL AND INTANGIBLES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The change in the carrying amount of Goodwill by operating segment, known as reporting unit for goodwill testing purposes, for the years ended December 31, 2022 and 2021, was as follows (in thousands): U.S. Direct Lending Canada Direct Lending Canada POS Lending Total Goodwill at December 31, 2020 $ 105,922 $ 30,169 $ — $ 136,091 Foreign currency translation — (64) (515) (579) Measurement period adjustment — — (4,478) (4,478) Acquisition (Note 14) 253,857 — 44,901 298,758 Goodwill at December 31, 2021 359,779 30,105 39,908 429,792 Foreign currency translation — (1,847) (2,494) (4,341) Measurement period adjustment 11,825 — — 11,825 Divestiture (Note 14) (91,131) — — (91,131) Acquisition (Note 14) 75,365 — — 75,365 Goodwill Impairment Charge (107,827) — (37,414) (145,241) Goodwill at December 31, 2022 $ 248,011 $ 28,258 $ — $ 276,269 |
Schedule of Identifiable Intangible Assets | Identifiable intangible assets consisted of the following: December 31, 2022 December 31, 2021 Weighted-Average Remaining Life (Years) Gross Accumulated Net Gross Accumulated Net Assets not subject to amortization Trade name — $ 21,432 $ — $ 21,432 $ 22,832 $ — $ 22,832 Assets subject to amortization Merchant relationships 3.3 18,265 (6,610) 11,655 19,459 (3,151) 16,308 Customer relationships 2.4 18,005 (5,957) 12,048 20,285 (10,295) 9,990 Computer software (1) 5.4 101,899 (30,833) 71,066 81,844 (25,453) 56,391 Trade name 11.6 8,411 (935) 7,476 4,621 (212) 4,409 Balance, end of year $ 168,012 $ (44,335) $ 123,677 $ 149,041 $ (39,111) $ 109,930 (1) Includes internally developed software, of $60.6 million and $44.7 million, net, as of December 31, 2022 and 2021, respectively. |
Schedule of Future Amortization Expense Related to Intangible Assets | The following table outlines the estimated amortization expense related to intangible assets held at December 31, 2022 for each of the next five years (in thousands): Year Ending December 31, 2023 $ 23,817 2024 21,859 2025 16,947 2026 6,158 2027 4,252 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Carried at Fair Value | The table below presents the assets and liabilities that were carried at fair value on the Consolidated Balance Sheets at December 31, 2022 (in thousands): Estimated Fair Value Carrying Value December 31, Level 1 Level 2 Level 3 Total Financial assets: Cash Surrender Value of Life Insurance $ 7,591 $ 7,591 $ — $ — $ 7,591 Derivative assets 7,458 — 7,458 — 7,458 Financial liabilities: Non-qualified deferred compensation plan $ 5,149 $ 5,149 $ — $ — 5,149 Contingent consideration related to acquisition 16,884 — — 16,884 16,884 The table below presents the assets and liabilities that were carried at fair value on the Consolidated Balance Sheets at December 31, 2021 (in thousands): Estimated Fair Value Carrying Value December 31, Level 1 Level 2 Level 3 Total Financial assets: Cash Surrender Value of Life Insurance $ 8,242 $ 8,242 $ — $ — $ 8,242 Financial liabilities: Non-qualified deferred compensation plan $ 5,109 $ 5,109 $ — $ — $ 5,109 Contingent consideration related to acquisition 26,508 — — 26,508 26,508 |
Summary of Assets and Liabilities Not Carried at Fair Value | The table below presents the assets and liabilities that were not carried at fair value on the Consolidated Balance Sheets at December 31, 2022 (in thousands): Estimated Fair Value Carrying Value December 31, Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 73,932 $ 73,932 $ — $ — $ 73,932 Restricted cash 91,745 91,745 — — 91,745 Loans receivable, net 1,965,805 — — 1,965,805 1,965,805 Investment in Katapult 23,915 20,624 — — 20,624 Financial liabilities: 7.50% Senior Secured Notes $ 982,934 $ — $ 466,500 $ — $ 466,500 Heights SPV 393,181 — — 393,181 393,181 First Heritage SPV 178,622 — — 182,751 182,751 Flexiti SPV 339,651 — — 343,565 343,565 Flexiti Securitization 385,054 — — 387,759 387,759 Canada SPV 292,872 — — 294,594 294,594 The table below presents the assets and liabilities that were not carried at fair value on the Consolidated Balance Sheets at December 31, 2021 (in thousands): Estimated Fair Value Carrying Value December 31, Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 63,179 $ 63,179 $ — $ — $ 63,179 Restricted cash 98,896 98,896 — — 98,896 Loans receivable, net 1,460,758 — — 1,460,758 1,460,758 Investment in Katapult 27,900 72,627 — — 72,627 Financial liabilities: Liability for losses on CSO lender-owned consumer loans (1) $ 6,908 $ — $ — $ 6,908 $ 6,908 7.50% Senior Secured Notes 980,721 — 1,005,700 — 1,005,700 U.S. SPV (1) 45,392 — — 49,456 49,456 Canada SPV 157,813 — — 160,533 160,533 Flexiti SPV 172,739 — — 176,625 176,625 Flexiti Securitization 239,128 — — 242,886 242,886 Heights Finance SPV 350,000 — — 350,000 350,000 (1) Liabilities were disposed of when we completed the divestiture of the Legacy U.S. Direct Lending Business on July 8, 2022. |
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 income 4,546 — 4,546 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 Purchases of common stock 1,570 — 1,570 Balance at December 31, 2020 7,762 19,609 27,371 Equity method income 3,658 — 3,658 Conversion of investment (2) 6,481 (19,609) (13,128) Purchases of common stock 9,999 — 9,999 Balance at December 31, 2021 27,900 — 27,900 Equity method loss (3,985) — (3,985) Balance at December 31, 2022 $ 23,915 $ — $ 23,915 (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. |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The Company's debt instruments and balances outstanding as of December 31, 2022 and December 31, 2021, including maturity date, effective interest rate and borrowing capacity, were as follows (dollars in thousands): Effective interest rate Outstanding as of Maturity Date Borrowing Capacity December 31, 2022 December 31, 2021 Corporate Debt: 7.50% Senior Secured Notes August 1, 2028 7.50 % $ 1,000,000 $ 1,000,000 Total corporate debt 1,000,000 1,000,000 Funding Debt: Heights SPV July 15, 2025 1-Mo SOFR + 4.25% $425.0 million $ 400,758 $ — First Heritage SPV July 13, 2025 1-Mo SOFR + 4.25% $225.0 million 182,751 — Flexiti SPV (1) September 29, 2025 Weighted average interest rate (4)(7) 8.33% C$535.0 million 343,565 176,625 Flexiti Securitization (1) (5) December 9, 2025 1-Mo CDOR + 3.59% (7) C$526.5 million 387,759 242,886 Canada SPV (1) August 2, 2026 3-Mo CDOR + 6.00% C$400.0 million 294,594 160,533 Heights Finance SPV (3) N/A (3) 1-Mo LIBOR + 5.25% $350.0 million — 350,000 U.S. SPV (2) N/A (2) 1-Mo LIBOR + 6.25% $200.0 million — 49,456 Curo Canada Revolving Credit Facility (1)(6) On-demand Canada Prime Rate + 1.95% C$5.0 million — — Senior Revolver August 31, 2023 1-Mo SOFR + 5.00% $40.0 million 35,000 — Total funding debt $ 1,644,427 $ 979,500 Less: debt issuance costs (37,113) (33,707) Total Debt $ 2,607,314 $ 1,945,793 (1) Capacity amounts are denominated in Canadian dollars, whereas outstanding balances as of December 31, 2022 and December 31, 2021 are denominated in U.S. dollars. The exchange rate applied at December 31, 2022 was 0.7365 and the exchange rate at December 31, 2021 was 0.7846. (2) The U.S. SPV was extinguished on July 8, 2022 upon the divestiture of the Legacy U.S. Direct lending Business. (3) The Heights Finance SPV was extinguished on July 15, 2022 and replaced as of July 15, 2022 with Heights SPV. (4) The weighted average interest rate does not include the impact of the amortization of deferred loan origination costs or debt discounts. (5) The effective rate is 7.09%. (6) On December 21, 2022, the maximum amount of the CURO Canada Revolving Credit Facility was reduced from C$10.0 million to C$5.0 million, and the facility was cancelled on January 6, 2023. (7) Swapped to fixed rate via interest rate swap hedging arrangement entered into on July 7, 2022 for Flexiti Securitization and October 11, 2022 for Flexiti SPV. |
Future Maturities of Long-Term Debt | Annual maturities of outstanding debt for each of the five years after December 31, 2022 are as follows (in thousands): Amount 2023 $ 35,000 2024 — 2025 1,314,833 2026 294,594 2027 — Thereafter 1,000,000 Debt (before deferred financing costs and discounts) 2,644,427 Less: deferred financing costs and discounts 37,113 Debt, net $ 2,607,314 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) | Income before taxes and income tax expense (benefit) was comprised of the following (in thousands): Year Ended December 31, 2022 2021 2020 (Loss) income before taxes U.S. $ (140,463) $ 86,106 $ 59,741 Non-U.S. (53,697) (5,549) 20,602 (Loss) income from continuing operations before taxes $ (194,160) $ 80,557 $ 80,343 Current provision (benefit) Federal $ 16,254 $ 21,549 $ (14,585) State 3,783 4,553 5,959 Foreign 9,120 13,639 3,925 Current provision (benefit) $ 29,157 $ 39,741 $ (4,701) Deferred tax (benefit) provision Federal $ (19,691) $ (5,022) $ 14,949 State (1,873) 154 (1,247) Foreign (16,271) (13,650) (3,106) Deferred tax (benefit) provision $ (37,835) $ (18,518) $ 10,596 (Benefit) provision for income taxes $ (8,678) $ 21,223 $ 5,895 |
Schedule of Effective Tax Rate | Differences between the Company's effective income tax rate computed on net earnings or loss before income taxes and the statutory federal income tax rate were as follows (dollars in thousands): Year Ended December 31, 2022 2021 2020 Income tax (benefit) expense using the statutory federal rate in effect $ (40,774) $ 16,917 $ 16,872 Tax effect of: Effects of foreign rates different than U.S. statutory rate 3,222 518 (1,236) State, local and provincial income taxes, net of federal benefit (2,635) 3,359 6,619 Tax credits (678) (802) (3,188) Nondeductible expenses 1,801 1,090 564 Valuation allowance 1,349 (275) (2,686) Prior year income tax re-determination (602) — — Share-based compensation 132 (705) 1,119 Gain on sale of business 8,484 — — Impairment of Goodwill 22,369 — — Federal NOL carryback — — (11,251) Prior year basis adjustment — — (659) Change in fair value of contingent consideration (1,187) 944 — Other (159) 177 (259) Total (benefit) provision for income taxes $ (8,678) $ 21,223 $ 5,895 Effective income tax rate 4.5 % 26.3 % 7.3 % Statutory federal income tax rate 21.0 % 21.0 % 21.0 % |
Summary of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands): Year Ended December 31, 2022 2021 Balance at the beginning of year $ 250 $ 1,100 Additions for tax positions related to prior years 1,648 125 Additions for tax positions related to the current year 60 125 Settlements with taxing authorities — (1,100) Balance at end of year $ 1,958 $ 250 |
Schedule of Deferred Income Tax Assets (Liabilities) | The sources of deferred income tax assets (liabilities) are summarized as follows (in thousands): Year Ended December 31, 2022 2021 Deferred tax assets related to: Loans receivable $ 9,913 $ — Accrued expenses and other reserves 7,309 2,960 Lease liability 16,055 26,777 Compensation accruals 6,826 5,845 Deferred revenue 1,811 204 State and provincial NOL carryforwards 18,560 15,547 Foreign NOL and capital loss carryforwards 21,378 17,090 Tax credit carryforwards 3,872 3,905 Gross deferred tax assets 85,724 72,328 Less: Valuation allowance (9,719) (7,732) Net deferred tax assets $ 76,005 $ 64,596 Deferred tax liabilities related to: Property and equipment $ (2,820) $ (14,950) Right of use asset (15,648) (25,304) Goodwill and other intangible assets (2,730) (9,914) Prepaid expenses and other assets (3,055) (466) Hedge accounting (1,859) — Loans receivable — (4,367) Gross deferred tax liabilities (26,112) (55,001) Net deferred tax assets $ 49,893 $ 9,595 Deferred tax assets and liabilities are included in the following line items in the Consolidated Balance Sheets (in thousands): Year Ended December 31, 2022 2021 Deferred tax assets $ 49,893 $ 15,639 Deferred tax liabilities — (6,044) Net deferred tax assets $ 49,893 $ 9,595 |
Summary of Valuation Allowance | A summary of the valuation allowance was as follows (in thousands): Year Ended December 31, 2022 2021 2020 Balance at the beginning of year $ 7,732 $ 5,695 $ 8,328 Increase (decrease) to balance charged as expense 1,349 (275) (2,686) Increase to balance charged to opening balance sheet of the acquisition 1,044 1,873 — (Decrease) to balance for the divestiture (542) — — Increase (decrease) to balance charged to Other comprehensive income 136 392 (378) Effect of foreign currency translation — 47 431 Balance at end of year $ 9,719 $ 7,732 $ 5,695 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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): For the Year Ended 2022 2021 2020 Net (loss) income from continuing operations $ (185,484) $ 59,334 $ 74,448 Net income from discontinued operations, net of tax — — 1,285 Net income $ (185,484) $ 59,334 $ 75,733 Weighted average common shares - basic 40,428 41,155 40,886 Dilutive effect of stock options and restricted stock units — 1,988 1,205 Weighted average common shares - diluted 40,428 43,143 42,091 (Loss) earnings per share: Continuing operations $ (4.59) $ 1.44 $ 1.82 Discontinued operations — — 0.03 Basic (loss) earnings per share $ (4.59) $ 1.44 $ 1.85 Diluted (loss) earnings per share: Continuing Operations $ (4.59) $ 1.38 $ 1.77 Discontinued operations — — 0.03 Diluted (loss) earnings per share $ (4.59) $ 1.38 $ 1.80 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | The following table summarizes the Company's stock option activity for the years ended December 31, 2022, 2021 and 2020: Stock Options Weighted Average Exercise Price Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in millions) Outstanding at Outstanding at January 1, 2020 1,404,622 $ 3.56 2.6 $ 12.1 Granted — $ — $ — Exercised (274,510) $ 2.79 $ 3.2 Forfeited — $ — $ — Outstanding at December 31, 2020 1,130,112 $ 3.74 2.6 $ 12.0 Granted — $ — $ — Exercised (615,024) $ 2.83 $ 8.1 Forfeited — $ — $ — Outstanding at December 31, 2021 515,088 $ 4.83 4.2 $ 5.8 Granted — $ — $ — Exercised — $ — $ — Forfeited — $ — $ — Outstanding at December 31, 2022 515,088 $ 4.83 3.2 $ (0.7) Options exercisable at December 31, 2022 515,088 $ 4.83 3.2 $ (0.7) |
Schedule of Restricted Stock Activity | A summary of the activity of time-based, market-based and performance-based unvested RSUs for the years ended December 31, 2022, 2021 and 2020 are presented in the following table: Number of RSUs Weighted Average Time-Based Market-Based Performance-Based January 1, 2020 1,061,753 394,861 — $ 11.47 Granted 694,213 368,539 — $ 10.40 Vested (716,268) — — $ 12.86 Forfeited (26,906) (4,687) — $ 11.89 December 31, 2020 1,012,792 758,713 — $ 10.26 Granted 1,238,564 299,053 253,310 $ 15.51 Vested (494,790) — — $ 11.04 Forfeited (80,638) (51,032) — $ 11.46 December 31, 2021 1,675,928 1,006,734 253,310 $ 13.27 Granted 1,649,980 1,422,886 — $ 9.75 Vested (785,751) — (7,568) $ 13.80 Forfeited (444,088) (701,258) (101,252) $ 11.90 December 31, 2022 2,096,069 1,728,362 144,490 $ 10.87 |
Share-based Compensation Expense | Share-based compensation expense, which includes compensation costs from stock options and RSUs, included in the Consolidated Statements of Operations as a component of "Salaries and benefits" is summarized in the following table (in thousands): For the year ended, 2022 2021 2020 Pre-tax share-based compensation expense $ 13,957 $ 13,976 $ 12,910 Income tax benefit (3,283) (4,475) (1,164) Total share-based compensation expense, net of tax $ 10,674 $ 9,501 $ 11,746 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Summary of Operating Lease Costs | The following table summarizes the operating lease costs and other information for the years ended December 31, 2022, 2021 and 2020 (in thousands): Year Ended December 31, 2022 2021 2020 Operating lease costs: Third-Party $ 32,538 $ 31,197 $ 30,828 Related-Party 2,282 3,394 3,386 Total operating lease costs (1) $ 34,820 $ 34,591 $ 34,214 Cash paid for amounts included in the measurement of operating lease liabilities $ 28,414 $ 36,235 $ 34,651 ROU assets (divested) obtained $ (24,749) $ 9,682 $ 18,847 Weighted average remaining lease term - Operating leases 4.4 years 4.9 years 5.7 years Weighted average discount rate - Operating leases 7.8 % 8.3 % 9.9 % (1) Includes immaterial variable lease costs. |
Summary of Future Minimum Lease Payments, ASC 842 | The following table summarizes the aggregate operating lease payments that the Company is contractually obligated to make under operating leases as of December 31, 2022 (in thousands): Third-Party Related-Party Total 2023 $ 24,323 $ 616 $ 24,939 2024 17,433 632 18,065 2025 11,813 649 12,462 2026 6,686 667 7,353 2027 4,265 685 4,950 Thereafter 8,139 993 9,132 Total 72,659 4,242 76,901 Less: Imputed interest (12,878) (1,176) (14,054) Operating lease liabilities $ 59,781 $ 3,066 $ 62,847 |
DIVIDENDS (Tables)
DIVIDENDS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Dividends | The table below summarizes the Company's quarterly dividends for the years ended December 31, 2022 and 2021. Dividends Paid Date of declaration Stockholders of record Date paid Dividend per share (in thousands) Q1 2022 February 4, 2022 February 18, 2022 March 1, 2022 $ 0.11 $ 4,517 Q2 2022 April 28, 2022 May 10, 2022 May 23, 2022 $ 0.11 $ 4,440 Q3 2022 August 3, 2022 August 15, 2022 August 26, 2022 $ 0.11 $ 4,453 Dividends Paid Date of declaration Stockholders of record 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 $ 0.11 $ 4,580 Q3 2021 July 28, 2021 August 9, 2021 August 19, 2021 $ 0.11 $ 4,556 Q4 2021 October 27, 2021 November 12, 2021 November 22, 2021 $ 0.11 $ 4,453 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Summary of Financial Information by Segment | The following table illustrates summarized financial information concerning reportable segments (in thousands): For the Year Ended 2022 2021 2020 Revenues by segment: (1) U.S. Direct Lending $ 615,722 $ 525,962 $ 638,524 Canada Direct Lending 303,750 257,039 208,872 Canada POS Lending 106,446 34,842 — Consolidated revenue $ 1,025,918 $ 817,843 $ 847,396 Net revenues by segment: U.S. Direct Lending $ 375,144 $ 359,929 $ 408,360 Canada Direct Lending 189,183 202,042 150,225 Canada POS Lending 61,266 10,204 — Consolidated net revenue $ 625,593 $ 572,175 $ 558,585 Segment (loss) income before income taxes: U.S. Direct Lending $ (175,350) $ 47,517 $ 34,172 Canada Direct Lending 51,163 88,731 46,171 Canada POS Lending (69,975) (55,691) — Consolidated (loss) income before income taxes $ (194,162) $ 80,557 $ 80,343 Expenditures for long-lived assets by segment: U.S. Direct Lending $ 18,173 $ 13,450 $ 10,079 Canada Direct Lending 6,768 2,238 639 Canada POS Lending 20,880 7,891 — Consolidated expenditures for long-lived assets $ 45,821 $ 23,579 $ 10,718 (1) For revenue by product, see Note 2 , "Loans Receivable and Revenue." The following table provides the proportion of gross loans receivable by segment (in thousands): December 31, December 31, U.S. Direct Lending $ 773,380 $ 661,945 Canada Direct Lending 481,015 427,197 Canada POS Lending 833,438 459,176 Total gross loans receivable $ 2,087,833 $ 1,548,318 |
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): December 31, December 31, U.S. Direct Lending $ 13,993 $ 32,753 Canada Direct Lending 15,239 21,072 Canada POS Lending 2,725 810 Total net long-lived assets $ 31,957 $ 54,635 |
ACQUISITIONS AND DIVESTITURE (T
ACQUISITIONS AND DIVESTITURE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Assets Acquired and Liabilities Assumed | Amounts acquired on July 13, 2022 Assets Cash and cash equivalents $ 31,396 Restricted cash 1,933 Gross loans receivable (1) 218,011 Prepaid expenses and other 1,285 Property and equipment 345 Right-of-use assets 4,241 Intangibles, net 10,670 Total assets $ 267,880 Liabilities Accounts payable and accrued liabilities $ 4,270 Lease liabilities 4,241 Debt 170,392 Total liabilities 178,904 Net assets acquired 88,976 Total consideration paid 164,341 Goodwill $ 75,365 (1) The gross contractual loans receivables as of July 13, 2022 were $236.1 million, of which the Company estimates $18.1 million will not be collected. Amounts acquired on December 27, 2021 Measurement period adjustments Amounts acquired on December 27, 2021 (as adjusted) Assets Cash and cash equivalents $ 13,564 $ — $ 13,564 Restricted cash 33,630 — 33,630 Gross loans receivable (1) 471,630 (15,379) 456,251 Income tax receivable 3,526 4,209 7,735 Prepaid expenses and other 7,410 — 7,410 Property and equipment 4,748 — 4,748 Right-of-use assets 16,111 — 16,111 Intangibles, net 11,900 — 11,900 Deferred tax asset — 2,477 2,477 Other assets 98 — 98 Total assets $ 562,617 $ (8,693) $ 553,924 Liabilities Accounts payable and accrued liabilities $ 19,186 $ 4,209 $ 23,395 Lease liabilities 16,315 — 16,315 Deferred tax liability 1,077 (1,077) — Accrued interest on debt 1,781 — 1,781 Debt 350,000 — 350,000 Total liabilities $ 388,359 $ 3,132 $ 391,491 Net assets acquired $ 174,258 $ (11,825) $ 162,433 Total consideration paid 428,115 428,115 Goodwill $ 253,857 $ 265,682 (1) The gross contractual loans receivables as of December 27, 2021 were $485.4 million, of which the Company estimates $29.1 million will not be collected. The following table presents the purchase price allocation recorded in the Company’s 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 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 |
Finite-Lived Intangible Assets Acquired as Part of Business Combination | The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (dollars in thousands): Fair Value Useful Life Trade name $ 3,790 10.0 years Customer relationships 6,880 3.5 years Total identified intangible assets $ 10,670 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 |
Schedule of Assets and Liabilities Held-for-Sale | The following table presents the amounts attributable to each category recorded in the Company’s Consolidated Balance Sheet as of the date of divestiture of the Legacy U.S. Direct Lending Business (in thousands): July 8, 2022 Assets Cash, cash equivalents and restricted cash $ 21,292 Loans receivable 162,147 Right of use asset 39,326 Goodwill 91,131 Other assets (1) 30,690 Total assets $ 344,586 Liabilities Accounts payable and accrued liabilities $ (8,947) Right of use liability (43,433) Liability for losses on CSO lender-owned consumer loans (5,628) Other long term liabilities (2) (5,815) Total liabilities (63,823) Net assets sold 280,763 Total proceeds 349,207 Total pretax gain on sale of business $ 68,444 (1) Includes income tax receivable, property and equipment, intangibles, deferred tax assets and other assets. (2) Includes deferred revenue, income taxes payable, deferred tax liability and other long-term liabilities The following table presents the results of operations of the U.K. Subsidiaries, which meet the criteria of Discontinued Operations and, therefore, are excluded from the Company's results of continuing operations (in thousands): For the Year Ended December 31, 2020 Revenue $ — Provision for losses — Net revenue — Cost of providing services Advertising — Non-advertising costs of providing services — Total cost of providing services — Gross margin — Operating expense (income) Corporate, district and other expenses — Interest income — Gain on disposition (1,714) Total operating income (1,714) Pre-tax income from operations of discontinued operations 1,714 Income tax expense related to disposition 429 Net income from discontinued operations $ 1,285 The following table presents cash flows of the U.K. Subsidiaries (in thousands): 2020 Net cash provided by discontinued operating activities $ 1,714 Net cash used in discontinued investing activities — Net cash used in discontinued financing activities — |
PREPAID EXPENSES AND OTHER (Tab
PREPAID EXPENSES AND OTHER (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Components of Prepaid Expenses and Other Assets | Components of Prepaid expenses and other assets were as follows (in thousands): December 31, 2022 December 31, 2021 Settlements and collateral due from third-party lenders (1) $ — $ 5,465 Fees receivable from customers under CSO programs (1) — 8,412 Prepaid expenses 13,963 16,243 Other assets 39,094 11,918 Total prepaid expenses and other $ 53,057 $ 42,038 (1) All balances in connection with the CSO programs were disposed of on July 8, 2022 upon the completion of the divestiture of the Legacy U.S. Direct Lending Business. |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Classification of Property and Equipment | The classification of property and equipment was as follows (in thousands): December 31, 2022 December 31, 2021 Leasehold improvements $ 52,031 $ 122,049 Furniture, fixtures and equipment 44,019 43,276 Property and equipment, gross 96,050 165,325 Accumulated depreciation and amortization (64,093) (110,690) Property and equipment, net $ 31,957 $ 54,635 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Components of Accounts Payable and Accrued Liabilities | Components of Accounts payable and accrued liabilities were as follows (in thousands): December 31, 2022 December 31, 2021 Trade accounts payable $ 14,100 $ 43,094 Money orders payable 2,112 3,460 Accrued taxes, other than income taxes 1,248 1,053 Accrued payroll and fringe benefits 16,487 41,658 Other accrued liabilities 39,880 32,169 Total accounts payable and accrued liabilities $ 73,827 $ 121,434 |
RESTRUCTURING AND STORE CLOSU_2
RESTRUCTURING AND STORE CLOSURES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Costs | The following table shows the total restructuring costs incurred during the year ended December 31, 2022 (in thousands): Employee Termination Benefits Lease Exit Costs Total Restructuring Costs Salaries and Benefits $ 6,601 $ — $ 6,601 Direct Operations 1,266 — 1,266 Other Operating Expense — 8,171 8,171 Total $ 7,867 $ 8,171 $ 16,038 The Company incurred $12.7 million of total one-time charges associated with the U.S. Direct Lending store closures during the year ended December 31, 2021 as follows: (in thousands) Year Ended December 31, 2021 (1) Store closure costs Severance and employee costs $ 3,943 Lease termination costs 1,710 Net accelerated depreciation and write-off of ROU assets and lease liabilities 7,064 Total store closure costs $ 12,717 (1) During the year ended December 31, 2021, the Consolidated Statement of Operations included $3.9 million of store closure costs recorded within "Salaries and benefits" and $8.7 million recorded within "Other operating expense." |
Activity of the Restructuring Reserve | The following table shows the total amount incurred and liability, which is recorded in accounts payables and other accrued liabilities in the Consolidated Balance Sheets, for restructuring-related costs as of December 31, 2022: Total Restructuring Costs Accrued restructuring costs as of October 5, 2022 $ — Restructuring costs incurred during the year ended December 31, 2022 $ 16,038 Amount paid during the year ended December 31, 2022 $ (11,292) Accrued restructuring costs as of December 31, 2022 $ 4,746 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | The following table presents the amounts attributable to each category recorded in the Company’s Consolidated Balance Sheet as of the date of divestiture of the Legacy U.S. Direct Lending Business (in thousands): July 8, 2022 Assets Cash, cash equivalents and restricted cash $ 21,292 Loans receivable 162,147 Right of use asset 39,326 Goodwill 91,131 Other assets (1) 30,690 Total assets $ 344,586 Liabilities Accounts payable and accrued liabilities $ (8,947) Right of use liability (43,433) Liability for losses on CSO lender-owned consumer loans (5,628) Other long term liabilities (2) (5,815) Total liabilities (63,823) Net assets sold 280,763 Total proceeds 349,207 Total pretax gain on sale of business $ 68,444 (1) Includes income tax receivable, property and equipment, intangibles, deferred tax assets and other assets. (2) Includes deferred revenue, income taxes payable, deferred tax liability and other long-term liabilities The following table presents the results of operations of the U.K. Subsidiaries, which meet the criteria of Discontinued Operations and, therefore, are excluded from the Company's results of continuing operations (in thousands): For the Year Ended December 31, 2020 Revenue $ — Provision for losses — Net revenue — Cost of providing services Advertising — Non-advertising costs of providing services — Total cost of providing services — Gross margin — Operating expense (income) Corporate, district and other expenses — Interest income — Gain on disposition (1,714) Total operating income (1,714) Pre-tax income from operations of discontinued operations 1,714 Income tax expense related to disposition 429 Net income from discontinued operations $ 1,285 The following table presents cash flows of the U.K. Subsidiaries (in thousands): 2020 Net cash provided by discontinued operating activities $ 1,714 Net cash used in discontinued investing activities — Net cash used in discontinued financing activities — |
SHARE REPURCHASE PROGRAM (Table
SHARE REPURCHASE PROGRAM (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Share Repurchase Program | The table below summarizes share repurchase activity in the $50.0 million repurchase program during the years ended December 31, 2022 and December 31, 2021 (in thousands, except for per share amounts and number of share amounts): For the Year Ended December 31, 2022 For the Year Ended December 31, 2021 Total number of shares repurchased 824,477 2,218,333 Average price paid per share $ 15.20 $ 16.86 Total value of shares repurchased $ 12,530 $ 37,400 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||
Jan. 01, 2023 USD ($) | Jul. 13, 2022 USD ($) | Jul. 08, 2022 USD ($) | May 18, 2022 USD ($) | Dec. 27, 2021 USD ($) | Jun. 01, 2021 | Mar. 10, 2021 USD ($) | Jan. 03, 2020 USD ($) | Jul. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Mar. 31, 2021 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 location | Dec. 31, 2022 state | Dec. 31, 2022 province | Dec. 31, 2022 partner | Dec. 31, 2022 territory | Dec. 31, 2022 | Dec. 31, 2022 store | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Number of retail locations | location | 496 | ||||||||||||||||||||||
Contingent consideration related to acquisition | $ 20,600,000 | $ 26,508,000 | $ 16,884,000 | ||||||||||||||||||||
Gain on sale of business | $ 68,400,000 | $ 68,400,000 | $ 68,443,000 | 0 | $ 0 | ||||||||||||||||||
Loans receivable, expected term | 60 months | ||||||||||||||||||||||
Insurance products reserves | 1,900,000 | ||||||||||||||||||||||
Restricted cash | 98,896,000 | 54,765,000 | 91,745,000 | ||||||||||||||||||||
Intangible impairments, indefinite-lived | $ 0 | 0 | 0 | ||||||||||||||||||||
Intangible impairments, finite-lived | $ 0 | 0 | 0 | ||||||||||||||||||||
Operating lease original term of contract | 5 years | ||||||||||||||||||||||
Allowance for loan losses | 87,560,000 | 122,028,000 | |||||||||||||||||||||
Decrease in retained earnings | (203,467,000) | (4,268,000) | |||||||||||||||||||||
(Benefit) provision for income taxes | $ (8,678,000) | 21,223,000 | $ 5,895,000 | ||||||||||||||||||||
Cumulative Effect, Period of Adoption, Adjustment | Forecast | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Allowance for loan losses | $ 135,000,000 | ||||||||||||||||||||||
Decrease in retained earnings | 100,000,000 | ||||||||||||||||||||||
(Benefit) provision for income taxes | $ 35,000,000 | ||||||||||||||||||||||
Previous Lag Period | Katapult | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Lag period | 2 months | 2 months | |||||||||||||||||||||
Current Lag Period | Katapult | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Lag period | 3 months | ||||||||||||||||||||||
Revenue Benchmark | Merchant Concentration Risk | LFL | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Concentration risk, percentage | 5.90% | ||||||||||||||||||||||
Consolidated Receivables Benchmark | Merchant Concentration Risk | LFL | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Concentration risk, percentage | 26.70% | ||||||||||||||||||||||
Maximum | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Intangible asset, useful life | 10 years | ||||||||||||||||||||||
Maximum | Computer software | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Intangible asset, useful life | 10 years | ||||||||||||||||||||||
Maximum | Furniture, fixtures and equipment | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Property and equipment, estimated useful life | 7 years | ||||||||||||||||||||||
Maximum | Leasehold improvements | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Property and equipment, estimated useful life | 15 years | ||||||||||||||||||||||
Minimum | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Intangible asset, useful life | 3 years | ||||||||||||||||||||||
Minimum | Computer software | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Intangible asset, useful life | 3 years | ||||||||||||||||||||||
Minimum | Furniture, fixtures and equipment | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Property and equipment, estimated useful life | 5 years | ||||||||||||||||||||||
Minimum | Leasehold improvements | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Property and equipment, estimated useful life | 5 years | ||||||||||||||||||||||
Consumer Portfolio Segment | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Allowance for loan losses | $ 87,560,000 | 122,028,000 | |||||||||||||||||||||
Consumer Portfolio Segment | Auto Title Loan | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Loans receivable, expected term | 30 days | ||||||||||||||||||||||
Consumer Portfolio Segment | Installment [Member] | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Late fees, percent of revenue (less than) (as a percent) | 1% | ||||||||||||||||||||||
Heights' Insurance Program | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Restricted cash | 21,400,000 | ||||||||||||||||||||||
U.S. SPV, Canada SPV, Flexiti SPV, Flexiti Securitization, Heights Finance SPC, Heights SPV and First Heritage SPV | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Restricted cash | 52,300,000 | ||||||||||||||||||||||
Canada | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Number of territories with online presence | territory | 1 | ||||||||||||||||||||||
Texas | Revenue Benchmark | Geographic Concentration Risk | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Concentration risk, percentage | 15.30% | 21% | 22.60% | ||||||||||||||||||||
Texas | Loans Receivable Benchmark | Geographic Concentration Risk | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Concentration risk, percentage | 3% | ||||||||||||||||||||||
ONTARIO | Revenue Benchmark | Geographic Concentration Risk | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Concentration risk, percentage | 29.20% | 20.20% | 16.60% | ||||||||||||||||||||
ONTARIO | Loans Receivable Benchmark | Geographic Concentration Risk | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Concentration risk, percentage | 14.80% | ||||||||||||||||||||||
California | Revenue Benchmark | Geographic Concentration Risk | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Concentration risk, percentage | 13.60% | ||||||||||||||||||||||
Tennessee | Loans Receivable Benchmark | Geographic Concentration Risk | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Concentration risk, percentage | 6.20% | ||||||||||||||||||||||
Canada POS Lending | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Number of retail locations | store | 8,400 | ||||||||||||||||||||||
Number of merchant partners | partner | 3,500 | ||||||||||||||||||||||
Number of geographical locations | 10 | 2 | |||||||||||||||||||||
U.S. Direct Lending | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Number of retail locations | store | 490 | ||||||||||||||||||||||
Number of states/provinces with online presence | state | 13 | ||||||||||||||||||||||
Canada Direct Lending | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Number of states/provinces with online presence | province | 8 | ||||||||||||||||||||||
Discontinued Operations, Disposed of by Sale | U.S. Legacy Direct Lending Business | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Divestiture sales price | $ 345,000,000 | ||||||||||||||||||||||
Additional proceeds from divestiture of businesses | $ 35,000,000 | ||||||||||||||||||||||
Total cash consideration from divestiture, payment terms | 12 months | ||||||||||||||||||||||
Gain on sale of business | $ 68,444,000 | $ 68,400,000 | $ 68,400,000 | $ 68,400,000 | |||||||||||||||||||
First Heritage SPV | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Total cash consideration transferred | $ 140,000,000 | $ 140,000,000 | |||||||||||||||||||||
Payments to acquire businesses, net of cash acquired | 131,012,000 | $ 0 | $ 0 | ||||||||||||||||||||
Heights SPV | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Total cash consideration transferred | $ 360,000,000 | ||||||||||||||||||||||
Payments to acquire businesses, net of cash acquired | 335,000,000 | ||||||||||||||||||||||
Business combination, consideration transferred, equity interests issued and issuable | $ 25,000,000 | ||||||||||||||||||||||
Equity interests acquired (as a percentage) | 100% | ||||||||||||||||||||||
Flexiti | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Total cash consideration transferred | $ 122,500,000 | ||||||||||||||||||||||
Payments to acquire businesses, gross | 86,500,000 | ||||||||||||||||||||||
Payments to acquire businesses, net of cash acquired | $ 1,000,000 | 91,203,000 | 0 | ||||||||||||||||||||
Business combination, consideration transferred, equity interests issued and issuable | 8,100,000 | ||||||||||||||||||||||
Contingent consideration related to acquisition | $ 20,600,000 | 16,900,000 | |||||||||||||||||||||
Equity interests acquired (as a percentage) | 100% | ||||||||||||||||||||||
Flexiti | Maximum | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Contingent consideration related to acquisition | $ 32,800,000 | ||||||||||||||||||||||
Flexiti | Minimum | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Contingent consideration related to acquisition | $ 0 | ||||||||||||||||||||||
Ad Astra | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Total cash consideration transferred | $ 17,811,000 | ||||||||||||||||||||||
Payments to acquire businesses, net of cash acquired | $ 14,400,000 | $ 0 | $ 0 | $ 14,418,000 | |||||||||||||||||||
Equity interests acquired (as a percentage) | 100% | ||||||||||||||||||||||
Heights and First Heritage | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Loans receivable | $ 769,000,000 |
LOANS RECEIVABLE AND REVENUE -
LOANS RECEIVABLE AND REVENUE - Revenue by Product (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from External Customer [Line Items] | |||
Total revenue | $ 1,025,918 | $ 817,843 | $ 847,396 |
Credit Services Organization Programs | |||
Revenue from External Customer [Line Items] | |||
Total revenue | 101,200 | 167,100 | 185,500 |
Consumer Portfolio Segment | |||
Revenue from External Customer [Line Items] | |||
Total revenue | 905,407 | 743,735 | 788,187 |
Consumer Portfolio Segment | Revolving LOC | |||
Revenue from External Customer [Line Items] | |||
Total revenue | 345,813 | 294,591 | 249,502 |
Consumer Portfolio Segment | Installment | |||
Revenue from External Customer [Line Items] | |||
Total revenue | 559,594 | 449,144 | 538,685 |
Unallocated Financing Receivables | Insurance premiums and commissions | |||
Revenue from External Customer [Line Items] | |||
Total revenue | 88,490 | 49,410 | 35,553 |
Unallocated Financing Receivables | Other revenue | |||
Revenue from External Customer [Line Items] | |||
Total revenue | $ 32,021 | $ 24,698 | $ 23,655 |
LOANS RECEIVABLE AND REVENUE _2
LOANS RECEIVABLE AND REVENUE - Loans Receivable by Product and Delinquency (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | $ 2,087,833 | $ 1,548,318 | |
Less: allowance for losses | (122,028) | (87,560) | |
Loans receivable, net | 1,965,805 | 1,460,758 | |
Total revenue | 1,025,918 | 817,843 | $ 847,396 |
Consumer Portfolio Segment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | 2,087,833 | 1,548,318 | |
Less: allowance for losses | (122,028) | (87,560) | |
Loans receivable, net | 1,965,805 | 1,460,758 | |
Total revenue | 905,407 | 743,735 | 788,187 |
Consumer Portfolio Segment | Current loans receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | 1,843,816 | 1,355,586 | |
Consumer Portfolio Segment | 1-30 days past-due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | 123,665 | 94,030 | |
Consumer Portfolio Segment | Total delinquent loans receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | 120,352 | 98,702 | |
Consumer Portfolio Segment | Revolving LOC | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | 1,284,515 | 914,113 | |
Less: allowance for losses | (78,815) | (68,140) | |
Loans receivable, net | 1,205,700 | 845,973 | |
Total revenue | 345,813 | 294,591 | $ 249,502 |
Consumer Portfolio Segment | Revolving LOC | Current loans receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | 1,194,554 | 843,379 | |
Consumer Portfolio Segment | Revolving LOC | 1-30 days past-due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | 46,956 | 35,657 | |
Consumer Portfolio Segment | Revolving LOC | Total delinquent loans receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | 43,005 | 35,077 | |
Consumer Portfolio Segment | Installment Company Owned | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | 803,318 | 634,205 | |
Less: allowance for losses | (43,213) | (19,420) | |
Loans receivable, net | 760,105 | 614,785 | |
Consumer Portfolio Segment | Installment Company Owned | Current loans receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | 649,262 | 512,207 | |
Consumer Portfolio Segment | Installment Company Owned | 1-30 days past-due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | 76,709 | 58,373 | |
Consumer Portfolio Segment | Installment Company Owned | Total delinquent loans receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | 77,347 | 63,625 | |
Consumer Portfolio Segment | Single-Pay | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | 42,500 | ||
Consumer Portfolio Segment | Single-Pay | Canada | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | $ 12,700 | $ 11,300 |
LOANS RECEIVABLE AND REVENUE _3
LOANS RECEIVABLE AND REVENUE - Delinquent Loans - Aging Analysis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | $ 2,087,833 | $ 1,548,318 |
Less: allowance for losses | (122,028) | (87,560) |
Loans receivable, net | 1,965,805 | 1,460,758 |
Consumer Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 2,087,833 | 1,548,318 |
Less: allowance for losses | (122,028) | (87,560) |
Loans receivable, net | 1,965,805 | 1,460,758 |
Consumer Portfolio Segment | Total delinquent loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 120,352 | 98,702 |
Consumer Portfolio Segment | 1-30 days past-due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 123,665 | 94,030 |
Consumer Portfolio Segment | 31-60 days past-due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 39,157 | 36,637 |
Consumer Portfolio Segment | 61-90 days past-due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 26,333 | 30,543 |
Consumer Portfolio Segment | 91 + days past-due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 54,862 | 31,522 |
Consumer Portfolio Segment | Current loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 1,843,816 | 1,355,586 |
Consumer Portfolio Segment | Revolving LOC | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 1,284,515 | 914,113 |
Less: allowance for losses | (78,815) | (68,140) |
Loans receivable, net | 1,205,700 | 845,973 |
Consumer Portfolio Segment | Revolving LOC | Total delinquent loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 43,005 | 35,077 |
Consumer Portfolio Segment | Revolving LOC | 1-30 days past-due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 46,956 | 35,657 |
Consumer Portfolio Segment | Revolving LOC | 31-60 days past-due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 17,677 | 15,452 |
Consumer Portfolio Segment | Revolving LOC | 61-90 days past-due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 12,190 | 13,397 |
Consumer Portfolio Segment | Revolving LOC | 91 + days past-due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 13,138 | 6,228 |
Consumer Portfolio Segment | Revolving LOC | Current loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 1,194,554 | 843,379 |
Consumer Portfolio Segment | Installment Company Owned | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 803,318 | 634,205 |
Less: allowance for losses | (43,213) | (19,420) |
Loans receivable, net | 760,105 | 614,785 |
Consumer Portfolio Segment | Installment Company Owned | Total delinquent loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 77,347 | 63,625 |
Consumer Portfolio Segment | Installment Company Owned | 1-30 days past-due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 76,709 | 58,373 |
Consumer Portfolio Segment | Installment Company Owned | 31-60 days past-due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 21,480 | 21,185 |
Consumer Portfolio Segment | Installment Company Owned | 61-90 days past-due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 14,143 | 17,146 |
Consumer Portfolio Segment | Installment Company Owned | 91 + days past-due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 41,724 | 25,294 |
Consumer Portfolio Segment | Installment Company Owned | Current loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | $ 649,262 | $ 512,207 |
LOANS RECEIVABLE AND REVENUE _4
LOANS RECEIVABLE AND REVENUE - Loans Receivable by Product, Credit Services Organization (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Less: Liability for losses on CSO lender-owned consumer loans | $ 0 | $ (6,908) | |
Consumer Portfolio Segment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Current loans receivable Guaranteed by the Company | 38,102 | ||
Total loans receivable Guaranteed by the Company | 46,317 | ||
Less: Liability for losses on CSO lender-owned consumer loans | $ 0 | (6,908) | $ (7,228) |
Loans receivable Guaranteed by the Company, net | 39,409 | ||
Consumer Portfolio Segment | Total delinquent loans receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Delinquent loans receivable Guaranteed by the Company | 1,420 | ||
Consumer Portfolio Segment | 1-30 days past-due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Delinquent loans receivable Guaranteed by the Company | $ 6,795 |
LOANS RECEIVABLE AND REVENUE _5
LOANS RECEIVABLE AND REVENUE - Delinquent Loans, Credit Services Organization - Aging Analysis (Details) - Consumer Portfolio Segment $ in Thousands | Dec. 31, 2021 USD ($) |
Total delinquent loans receivable | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Delinquent loans receivable | $ 1,420 |
31-60 days past-due | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Delinquent loans receivable | 1,031 |
61-90 days past-due | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Delinquent loans receivable | 285 |
91 + days past-due | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Delinquent loans receivable | $ 104 |
LOANS RECEIVABLE AND REVENUE _6
LOANS RECEIVABLE AND REVENUE - Allowance For Doubtful Accounts - CSO Guarantee Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for loan losses: | |||
Provision for losses | $ 400,325 | $ 245,668 | $ 288,811 |
Liability for losses on CSO lender-owned consumer loans: | |||
Liability for losses on CSO lender-owned consumer loans, balance, beginning of period | 6,908 | ||
Liability for losses on CSO lender-owned consumer loans, balance, end of period | 0 | 6,908 | |
Consumer Portfolio Segment | |||
Allowance for loan losses: | |||
Allowance for loan losses, balance, beginning of period | 87,560 | 86,162 | |
Charge-offs | (395,227) | (310,472) | |
Recoveries | 114,410 | 138,411 | |
Net charge-offs | (280,817) | (172,061) | |
Provision for losses | 350,266 | 174,324 | |
Divestiture | (27,246) | ||
Effect of foreign currency translation | (7,735) | (865) | |
Allowance for loan losses, balance, end of period | 122,028 | 87,560 | 86,162 |
Liability for losses on CSO lender-owned consumer loans: | |||
Liability for losses on CSO lender-owned consumer loans, balance, beginning of period | 6,908 | 7,228 | |
Decrease in liability | (1,280) | (320) | |
Divestiture | (5,628) | ||
Liability for losses on CSO lender-owned consumer loans, balance, end of period | 0 | 6,908 | 7,228 |
Consumer Portfolio Segment | Revolving LOC | |||
Allowance for loan losses: | |||
Allowance for loan losses, balance, beginning of period | 68,140 | 51,958 | |
Charge-offs | (162,587) | (114,827) | |
Recoveries | 27,976 | 29,454 | |
Net charge-offs | (134,611) | (85,373) | |
Provision for losses | 166,414 | 102,457 | |
Divestiture | (13,555) | ||
Effect of foreign currency translation | (7,573) | (902) | |
Allowance for loan losses, balance, end of period | 78,815 | 68,140 | 51,958 |
Liability for losses on CSO lender-owned consumer loans: | |||
Liability for losses on CSO lender-owned consumer loans, balance, beginning of period | 0 | 0 | |
Decrease in liability | 0 | 0 | |
Divestiture | 0 | ||
Liability for losses on CSO lender-owned consumer loans, balance, end of period | 0 | 0 | 0 |
Consumer Portfolio Segment | Installment | |||
Allowance for loan losses: | |||
Allowance for loan losses, balance, beginning of period | 19,420 | 34,204 | |
Charge-offs | (221,197) | (191,734) | |
Recoveries | 85,033 | 107,147 | |
Net charge-offs | (136,164) | (84,587) | |
Provision for losses | 173,810 | 69,766 | |
Divestiture | (13,691) | ||
Effect of foreign currency translation | (162) | 37 | |
Allowance for loan losses, balance, end of period | 43,213 | 19,420 | 34,204 |
Liability for losses on CSO lender-owned consumer loans: | |||
Liability for losses on CSO lender-owned consumer loans, balance, beginning of period | 6,908 | 7,228 | |
Decrease in liability | (1,280) | (320) | |
Divestiture | (5,628) | ||
Liability for losses on CSO lender-owned consumer loans, balance, end of period | 0 | 6,908 | 7,228 |
Consumer Portfolio Segment | Other | |||
Allowance for loan losses: | |||
Allowance for loan losses, balance, beginning of period | 0 | 0 | |
Charge-offs | (11,443) | (3,911) | |
Recoveries | 1,401 | 1,810 | |
Net charge-offs | (10,042) | (2,101) | |
Provision for losses | 10,042 | 2,101 | |
Divestiture | 0 | ||
Effect of foreign currency translation | 0 | 0 | |
Allowance for loan losses, balance, end of period | 0 | 0 | 0 |
Liability for losses on CSO lender-owned consumer loans: | |||
Liability for losses on CSO lender-owned consumer loans, balance, beginning of period | 0 | 0 | |
Decrease in liability | 0 | 0 | |
Divestiture | 0 | ||
Liability for losses on CSO lender-owned consumer loans, balance, end of period | $ 0 | $ 0 | $ 0 |
LOANS RECEIVABLE AND REVENUE _7
LOANS RECEIVABLE AND REVENUE - TDR Loans Receivable (Details) - Consumer Portfolio Segment - Credit Services Organization Programs - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDR gross receivables | $ 12,804 | $ 16,646 |
Less: Impairment included in the allowance for loan losses | (2,691) | (3,632) |
Less: Additional allowance | (660) | (2,212) |
Outstanding TDR receivables, net of impairment | 9,453 | 10,802 |
Current TDR gross receivables | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Current TDR gross receivables | 10,169 | 11,580 |
Delinquent TDR gross receivables | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Delinquent TDR gross receivables | $ 2,635 | $ 5,066 |
LOANS RECEIVABLE AND REVENUE _8
LOANS RECEIVABLE AND REVENUE - New Loans Modified and Classified as TDRs (Details) - Consumer Portfolio Segment - Credit Services Organization Programs - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Pre-modification TDR loans receivable | $ 9,030 | $ 16,255 | $ 38,930 |
Post-modification TDR loans receivable | 8,702 | 14,538 | 34,252 |
Total concessions included in gross charge-offs | $ 328 | $ 1,717 | $ 4,678 |
LOANS RECEIVABLE AND REVENUE _9
LOANS RECEIVABLE AND REVENUE - Outstanding TDR Loans Receivable and Interest Income (Details) - Credit Services Organization Programs - Consumer Portfolio Segment $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | Dec. 31, 2020 USD ($) loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Average outstanding TDR loans receivable | $ 11,065 | $ 18,259 | $ 20,631 |
Interest income recognized | $ 5,320 | $ 18,328 | $ 17,074 |
Number of TDR loans | loan | 3,531 | 11,693 | 27,082 |
LOANS RECEIVABLE AND REVENUE_10
LOANS RECEIVABLE AND REVENUE - Narrative (Details) - Consumer Portfolio Segment - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Credit Services Organization Programs | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDRs that were charged off | $ 5.4 | $ 14 |
Installment [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Loans classified as nonaccrual | 54.6 | 41.4 |
Revolving LOC | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Loans classified as nonaccrual | 5.3 | $ 5.9 |
Open-End | Credit Services Organization Programs | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Commitment to lend additional funds | $ 1.4 |
VARIABLE INTEREST ENTITIES - Ca
VARIABLE INTEREST ENTITIES - Carrying Amounts of Consolidated VIE Assets and Liabilities (Details) $ in Thousands | Dec. 31, 2022 USD ($) facility | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) |
Variable Interest Entity [Line Items] | |||
Number of credit facilities held | facility | 5 | ||
Assets | |||
Restricted cash | $ 91,745 | $ 98,896 | $ 54,765 |
Loans receivable, net | 1,965,805 | 1,460,758 | |
Prepaid expenses and other | 53,057 | 42,038 | |
Deferred tax assets | 49,893 | 15,639 | |
Total Assets | 2,789,193 | 2,460,596 | |
Liabilities | |||
Accounts payable and accrued liabilities | 73,827 | 121,434 | |
Deferred revenue | 32,259 | 21,649 | |
Deferred tax liability | 0 | 6,044 | |
Accrued interest | 38,460 | 34,974 | |
Debt, net | 2,607,314 | 1,945,793 | |
Total Liabilities | $ 2,843,327 | 2,300,266 | |
Variable Interest Entity | |||
Variable Interest Entity [Line Items] | |||
Number of credit facilities held | facility | 5 | ||
Assets | |||
Restricted cash | $ 52,277 | 57,155 | |
Loans receivable, net | 1,855,824 | 1,228,088 | |
Prepaid expenses and other | 12,908 | 0 | |
Deferred tax assets | 17,027 | 0 | |
Total Assets | 1,938,036 | 1,285,243 | |
Liabilities | |||
Accounts payable and accrued liabilities | 13,571 | 9,886 | |
Deferred revenue | 31 | 106 | |
Deferred tax liability | 0 | 269 | |
Accrued interest | 7,023 | 3,279 | |
Income taxes payable | 7,850 | 0 | |
Debt, net | 1,589,380 | 965,072 | |
Total Liabilities | $ 1,617,855 | $ 978,612 |
GOODWILL AND INTANGIBLES - Sche
GOODWILL AND INTANGIBLES - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jul. 13, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | $ 429,792 | $ 136,091 | ||
Foreign currency translation | (4,341) | (579) | ||
Measurement period adjustment | 11,825 | (4,478) | ||
Divestiture (Note 14) | (91,131) | |||
Acquisition (Note 14) | 75,365 | 298,758 | ||
Goodwill impairment | (145,241) | 0 | $ 0 | |
Goodwill, ending Balance | 276,269 | 429,792 | 136,091 | |
U.S. Direct Lending | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | 359,779 | 105,922 | ||
Foreign currency translation | 0 | 0 | ||
Measurement period adjustment | 11,825 | 0 | ||
Divestiture (Note 14) | (91,131) | |||
Acquisition (Note 14) | $ 75,400 | 75,365 | 253,857 | |
Goodwill impairment | (107,827) | |||
Goodwill, ending Balance | 248,011 | 359,779 | 105,922 | |
Canada Direct Lending | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | 30,105 | 30,169 | ||
Foreign currency translation | (1,847) | (64) | ||
Measurement period adjustment | 0 | 0 | ||
Divestiture (Note 14) | 0 | |||
Acquisition (Note 14) | 0 | 0 | ||
Goodwill impairment | 0 | |||
Goodwill, ending Balance | 28,258 | 30,105 | 30,169 | |
Canada POS Lending | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | 39,908 | 0 | ||
Foreign currency translation | (2,494) | (515) | ||
Measurement period adjustment | 0 | (4,478) | ||
Divestiture (Note 14) | 0 | |||
Acquisition (Note 14) | 0 | 44,901 | ||
Goodwill impairment | (37,414) | |||
Goodwill, ending Balance | $ 0 | $ 39,908 | $ 0 |
GOODWILL AND INTANGIBLES - Iden
GOODWILL AND INTANGIBLES - Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Assets subject to amortization | ||
Gross Carrying Amount | $ 168,012 | $ 149,041 |
Accumulated Amortization | (44,335) | (39,111) |
Net | $ 123,677 | 109,930 |
Merchant relationships | ||
Assets subject to amortization | ||
Weighted-Average Remaining Life (Years) | 3 years 3 months 18 days | |
Gross Carrying Amount | $ 18,265 | 19,459 |
Accumulated Amortization | (6,610) | (3,151) |
Net | $ 11,655 | 16,308 |
Customer relationships | ||
Assets subject to amortization | ||
Weighted-Average Remaining Life (Years) | 2 years 4 months 24 days | |
Gross Carrying Amount | $ 18,005 | 20,285 |
Accumulated Amortization | (5,957) | (10,295) |
Net | $ 12,048 | 9,990 |
Computer software | ||
Assets subject to amortization | ||
Weighted-Average Remaining Life (Years) | 5 years 4 months 24 days | |
Gross Carrying Amount | $ 101,899 | 81,844 |
Accumulated Amortization | (30,833) | (25,453) |
Net | $ 71,066 | 56,391 |
Trade name | ||
Assets subject to amortization | ||
Weighted-Average Remaining Life (Years) | 11 years 7 months 6 days | |
Gross Carrying Amount | $ 8,411 | 4,621 |
Accumulated Amortization | (935) | (212) |
Net | 7,476 | 4,409 |
Software Development | ||
Assets subject to amortization | ||
Gross Carrying Amount | 60,600 | 44,700 |
Trade name | ||
Assets not subject to amortization | ||
Gross Carrying Amount | $ 21,432 | $ 22,832 |
GOODWILL AND INTANGIBLES - Esti
GOODWILL AND INTANGIBLES - Estimated Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 23,817 |
2024 | 21,859 |
2025 | 16,947 |
2026 | 6,158 |
2027 | $ 4,252 |
GOODWILL AND INTANGIBLES - Narr
GOODWILL AND INTANGIBLES - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 10 Months Ended | 12 Months Ended | |||||||||
Jul. 13, 2022 USD ($) | Jul. 08, 2022 USD ($) | May 18, 2022 USD ($) | Dec. 27, 2021 USD ($) | Mar. 10, 2021 USD ($) | Dec. 31, 2022 USD ($) Unit | Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Number of reporting units | Unit | 3 | ||||||||||||
Goodwill impairment | $ 145,241 | $ 0 | $ 0 | ||||||||||
Goodwill | $ 276,269 | $ 429,792 | $ 276,269 | 276,269 | 429,792 | 136,091 | |||||||
Measurement period adjustment | (11,825) | 4,478 | |||||||||||
Foreign currency translation | 4,341 | 579 | |||||||||||
Provisional goodwill | 75,365 | 298,758 | |||||||||||
Total proceeds | 288,980 | 0 | 0 | ||||||||||
Gain on sale of business | $ 68,400 | $ 68,400 | 68,443 | 0 | 0 | ||||||||
Amortization expense | 22,800 | 13,800 | 3,000 | ||||||||||
Discontinued Operations, Disposed of by Sale | U.S. Legacy Direct Lending Business | |||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Additional proceeds from divestiture of businesses | $ 35,000 | ||||||||||||
Total proceeds | 349,207 | ||||||||||||
Cash received at close of divestiture of business | 314,200 | ||||||||||||
Gain on sale of business | $ 68,444 | $ 68,400 | $ 68,400 | $ 68,400 | |||||||||
Minimum | |||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Intangible asset, useful life | 3 years | ||||||||||||
Minimum | Customer relationships and computer software | |||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Intangible asset, useful life | 1 year | ||||||||||||
Maximum | |||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Intangible asset, useful life | 10 years | ||||||||||||
Maximum | Customer relationships and computer software | |||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Intangible asset, useful life | 15 years | ||||||||||||
Cash Money Trade Name | |||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Gross Carrying Amount | 21,400 | 21,400 | $ 21,400 | ||||||||||
Canada POS Lending | |||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Goodwill impairment | 37,414 | ||||||||||||
Goodwill | 0 | 39,908 | 0 | 0 | 39,908 | 0 | |||||||
Measurement period adjustment | 0 | 4,478 | |||||||||||
Foreign currency translation | 2,494 | 515 | |||||||||||
Provisional goodwill | 0 | 44,901 | |||||||||||
U.S. Direct Lending | |||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Goodwill impairment | 107,827 | ||||||||||||
Goodwill | 248,011 | 359,779 | 248,011 | 248,011 | 359,779 | $ 105,922 | |||||||
Measurement period adjustment | (11,825) | 0 | |||||||||||
Foreign currency translation | 0 | 0 | |||||||||||
Provisional goodwill | $ 75,400 | 75,365 | 253,857 | ||||||||||
Goodwill written off | 91,100 | ||||||||||||
Flexiti | |||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Goodwill | $ 44,901 | 40,400 | 40,421 | 40,400 | 40,400 | 40,421 | |||||||
Measurement period adjustment | 4,480 | (4,500) | |||||||||||
Total cash consideration transferred | $ 122,500 | ||||||||||||
Flexiti | Canada POS Lending | |||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Goodwill | $ 39,900 | 39,900 | |||||||||||
Measurement period adjustment | 4,500 | ||||||||||||
Foreign currency translation | $ 500 | ||||||||||||
Heights SPV | |||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Goodwill | $ 253,857 | 265,682 | 265,682 | 265,682 | |||||||||
Measurement period adjustment | (3,500) | 11,825 | (11,800) | ||||||||||
Total cash consideration transferred | 360,000 | ||||||||||||
Heights SPV | U.S. Direct Lending | |||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Provisional goodwill | $ 253,900 | ||||||||||||
First Heritage SPV | |||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Goodwill | 75,365 | ||||||||||||
Total cash consideration transferred | $ 140,000 | $ 140,000 | |||||||||||
Heights Finance | U.S. Direct Lending | |||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Goodwill | $ 265,700 | $ 265,700 | $ 265,700 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Thousands, shares in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Jun. 09, 2021 USD ($) boardSeat shares | Jun. 01, 2021 | Jul. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) shares | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Mar. 10, 2021 USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||
Contingent consideration related to acquisition | $ 16,884 | $ 26,508 | $ 20,600 | $ 16,884 | $ 26,508 | ||||||
Gain from equity method investment | 0 | 135,387 | $ 0 | ||||||||
Number of seats held | boardSeat | 2 | ||||||||||
Total number of seats | boardSeat | 8 | ||||||||||
Equity Method Investment | |||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||
Equity method income (loss) | $ (3,985) | $ 3,658 | 4,546 | ||||||||
Katapult | |||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||
Additional shares acquired | shares | 2.6 | ||||||||||
Purchase of additional securities | $ 10,000 | ||||||||||
Cash received from equity method investment | $ 146,900 | ||||||||||
Sale of stock, number of shares issued in transaction (in shares) | shares | 18.9 | ||||||||||
Gain from equity method investment | $ 135,400 | ||||||||||
Earn-out warrants received from merger (in shares) | shares | 3 | ||||||||||
Ownership percentage | 19.50% | 19.50% | |||||||||
Ownership percentage excluding earn out shares | 0.182 | 0.182 | |||||||||
Katapult | Current Lag Period | |||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||
Lag period | 3 months | ||||||||||
Katapult | Previous Lag Period | |||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||
Lag period | 2 months | 2 months | |||||||||
Senior Notes | Senior Secured Notes | |||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||
Stated interest rate (as percent) | 7.50% | 7.50% | 7.50% | 7.50% | |||||||
Fair Value, Measurements, Nonrecurring | Equity Method Investment | |||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||
Equity method income (loss) | $ (1,900) | $ (3,985) | $ 3,658 | 4,546 | |||||||
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 | $ 16,900 | 16,900 | $ 20,600 | ||||||||
First payment to acquire business | $ 1,000 | $ 91,203 | $ 0 |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of Assets and Liabilities Carried at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Financial liabilities: | |||
Contingent consideration related to acquisition | $ 16,884 | $ 26,508 | $ 20,600 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | ||
Fair Value, Measurements, Recurring | Reported Value Measurement | |||
Financial assets: | |||
Cash Surrender Value of Life Insurance | $ 7,591 | 8,242 | |
Interest rate swap | 7,458 | ||
Financial liabilities: | |||
Non-qualified deferred compensation plan | 5,149 | 5,109 | |
Contingent consideration related to acquisition | 16,884 | 26,508 | |
Fair Value, Measurements, Recurring | Estimated Fair Value | |||
Financial assets: | |||
Cash Surrender Value of Life Insurance | 7,591 | 8,242 | |
Interest rate swap | 7,458 | ||
Financial liabilities: | |||
Non-qualified deferred compensation plan | 5,149 | 5,109 | |
Contingent consideration related to acquisition | 16,884 | 26,508 | |
Fair Value, Measurements, Recurring | Estimated Fair Value | Level 1 | |||
Financial assets: | |||
Cash Surrender Value of Life Insurance | 7,591 | 8,242 | |
Interest rate swap | 0 | ||
Financial liabilities: | |||
Non-qualified deferred compensation plan | 5,149 | 5,109 | |
Contingent consideration related to acquisition | 0 | 0 | |
Fair Value, Measurements, Recurring | Estimated Fair Value | Level 2 | |||
Financial assets: | |||
Cash Surrender Value of Life Insurance | 0 | 0 | |
Interest rate swap | 7,458 | ||
Financial liabilities: | |||
Non-qualified deferred compensation plan | 0 | 0 | |
Contingent consideration related to acquisition | 0 | 0 | |
Fair Value, Measurements, Recurring | Estimated Fair Value | Level 3 | |||
Financial assets: | |||
Cash Surrender Value of Life Insurance | 0 | 0 | |
Interest rate swap | 0 | ||
Financial liabilities: | |||
Non-qualified deferred compensation plan | 0 | 0 | |
Contingent consideration related to acquisition | $ 16,884 | $ 26,508 |
FAIR VALUE MEASUREMENTS - Sum_2
FAIR VALUE MEASUREMENTS - Summary of Assets and Liabilities Not Carried at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Financial assets: | |||
Restricted cash | $ 91,745 | $ 98,896 | $ 54,765 |
Senior Secured Notes | Senior Notes | |||
Financial liabilities: | |||
Stated interest rate (as percent) | 7.50% | 7.50% | |
Fair Value, Measurements, Nonrecurring | Reported Value Measurement | |||
Financial assets: | |||
Cash and cash equivalents | $ 73,932 | $ 63,179 | |
Restricted cash | 91,745 | 98,896 | |
Loans receivable | 1,965,805 | 1,460,758 | |
Balance, ending period | 23,915 | 27,900 | |
Financial liabilities: | |||
Liability for losses on CSO lender-owned consumer loans | 6,908 | ||
Fair Value, Measurements, Nonrecurring | Reported Value Measurement | Senior Secured Notes | Senior Notes | |||
Financial liabilities: | |||
Debt | 982,934 | 980,721 | |
Fair Value, Measurements, Nonrecurring | Reported Value Measurement | U.S. SPV | |||
Financial liabilities: | |||
Debt | 45,392 | ||
Fair Value, Measurements, Nonrecurring | Reported Value Measurement | Heights SPV | |||
Financial liabilities: | |||
Debt | 393,181 | ||
Fair Value, Measurements, Nonrecurring | Reported Value Measurement | First Heritage SPV | |||
Financial liabilities: | |||
Debt | 178,622 | ||
Fair Value, Measurements, Nonrecurring | Reported Value Measurement | Canada SPV | |||
Financial liabilities: | |||
Debt | 292,872 | 157,813 | |
Fair Value, Measurements, Nonrecurring | Reported Value Measurement | Flexiti SPV | |||
Financial liabilities: | |||
Debt | 339,651 | 172,739 | |
Fair Value, Measurements, Nonrecurring | Reported Value Measurement | Flexiti Securitization | |||
Financial liabilities: | |||
Debt | 385,054 | 239,128 | |
Fair Value, Measurements, Nonrecurring | Reported Value Measurement | Heights Finance SPV | |||
Financial liabilities: | |||
Debt | 350,000 | ||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | |||
Financial assets: | |||
Cash and cash equivalents | 73,932 | 63,179 | |
Restricted cash | 91,745 | 98,896 | |
Loans receivable | 1,965,805 | 1,460,758 | |
Balance, ending period | 20,624 | 72,627 | |
Financial liabilities: | |||
Liability for losses on CSO lender-owned consumer loans | 6,908 | ||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Senior Secured Notes | Senior Notes | |||
Financial liabilities: | |||
Debt | 466,500 | 1,005,700 | |
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | U.S. SPV | |||
Financial liabilities: | |||
Debt | 49,456 | ||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Heights SPV | |||
Financial liabilities: | |||
Debt | 393,181 | ||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Canada SPV | |||
Financial liabilities: | |||
Debt | 294,594 | 160,533 | |
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Flexiti SPV | |||
Financial liabilities: | |||
Debt | 343,565 | 176,625 | |
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Flexiti Securitization | |||
Financial liabilities: | |||
Debt | 387,759 | 242,886 | |
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Heights Finance SPV | |||
Financial liabilities: | |||
Debt | 350,000 | ||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 1 | |||
Financial assets: | |||
Cash and cash equivalents | 73,932 | 63,179 | |
Restricted cash | 91,745 | 98,896 | |
Loans receivable | 0 | 0 | |
Balance, ending period | 20,624 | 72,627 | |
Financial liabilities: | |||
Liability for losses on CSO lender-owned consumer loans | 0 | ||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 1 | Senior Secured Notes | Senior Notes | |||
Financial liabilities: | |||
Debt | 0 | 0 | |
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 1 | U.S. SPV | |||
Financial liabilities: | |||
Debt | 0 | ||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 1 | Heights SPV | |||
Financial liabilities: | |||
Debt | 0 | ||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 1 | First Heritage SPV | |||
Financial liabilities: | |||
Debt | 0 | ||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 1 | Canada SPV | |||
Financial liabilities: | |||
Debt | 0 | 0 | |
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 1 | Flexiti SPV | |||
Financial liabilities: | |||
Debt | 0 | 0 | |
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 1 | Flexiti Securitization | |||
Financial liabilities: | |||
Debt | 0 | 0 | |
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 1 | Heights Finance SPV | |||
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 | 0 | 0 | |
Balance, ending period | 0 | 0 | |
Financial liabilities: | |||
Liability for losses on CSO lender-owned consumer loans | 0 | ||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 2 | Senior Secured Notes | Senior Notes | |||
Financial liabilities: | |||
Debt | 466,500 | 1,005,700 | |
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 2 | U.S. SPV | |||
Financial liabilities: | |||
Debt | 0 | ||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 2 | Heights SPV | |||
Financial liabilities: | |||
Debt | 0 | ||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 2 | First Heritage SPV | |||
Financial liabilities: | |||
Debt | 0 | ||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 2 | Canada SPV | |||
Financial liabilities: | |||
Debt | 0 | 0 | |
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 2 | Flexiti SPV | |||
Financial liabilities: | |||
Debt | 0 | 0 | |
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 2 | Flexiti Securitization | |||
Financial liabilities: | |||
Debt | 0 | 0 | |
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 2 | Heights Finance SPV | |||
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 | 1,965,805 | 1,460,758 | |
Balance, ending period | 0 | 0 | |
Financial liabilities: | |||
Liability for losses on CSO lender-owned consumer loans | 6,908 | ||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 3 | Senior Secured Notes | Senior Notes | |||
Financial liabilities: | |||
Debt | 0 | 0 | |
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 3 | U.S. SPV | |||
Financial liabilities: | |||
Debt | 49,456 | ||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 3 | Heights SPV | |||
Financial liabilities: | |||
Debt | 393,181 | ||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 3 | First Heritage SPV | |||
Financial liabilities: | |||
Debt | 182,751 | ||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 3 | Canada SPV | |||
Financial liabilities: | |||
Debt | 294,594 | 160,533 | |
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 3 | Flexiti SPV | |||
Financial liabilities: | |||
Debt | 343,565 | 176,625 | |
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 3 | Flexiti Securitization | |||
Financial liabilities: | |||
Debt | $ 387,759 | 242,886 | |
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 3 | Heights Finance SPV | |||
Financial liabilities: | |||
Debt | $ 350,000 |
FAIR VALUE MEASUREMENTS - Inves
FAIR VALUE MEASUREMENTS - Investment in Katapult (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 12 Months Ended | ||||
Jun. 09, 2021 | Dec. 31, 2022 | Jun. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Gain from equity method investment | $ 0 | $ 135,387 | $ 0 | |||
Katapult | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Proceeds from Katapult | $ 146,900 | |||||
Sale of stock, number of shares issued in transaction (in shares) | 18.9 | |||||
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 | 27,900 | 27,371 | 10,068 | |||
Equity method income (loss) | (3,985) | 3,658 | 4,546 | |||
Accounting policy change for certain securities from equity method investment to measurement alternative | 0 | |||||
Conversion of investment | (13,128) | |||||
Ending balance | $ 23,915 | 23,915 | 27,900 | 27,371 | ||
Equity Method Investment | Common Stock Warrants and Preferred Shares | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Purchases | 11,187 | |||||
Equity Method Investment | Common Stock | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Purchases | 9,999 | 1,570 | ||||
Equity Method Investment | Fair Value, Measurements, Nonrecurring | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Beginning balance | 27,900 | 7,762 | 10,068 | |||
Equity method income (loss) | (1,900) | (3,985) | 3,658 | 4,546 | ||
Accounting policy change for certain securities from equity method investment to measurement alternative | (12,452) | |||||
Conversion of investment | 6,481 | |||||
Ending balance | 23,915 | 23,915 | 27,900 | 7,762 | ||
Equity Method Investment | Fair Value, Measurements, Nonrecurring | Common Stock Warrants and Preferred Shares | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Purchases | 4,030 | |||||
Equity Method Investment | Fair Value, Measurements, Nonrecurring | Common Stock | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Purchases | 9,999 | 1,570 | ||||
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 | 0 | |||
Equity method income (loss) | 0 | 0 | 0 | |||
Accounting policy change for certain securities from equity method investment to measurement alternative | 12,452 | |||||
Conversion of investment | (19,609) | |||||
Ending balance | $ 0 | $ 0 | 0 | 19,609 | ||
Equity Method Investment | Fair Value, Measurements, Recurring | Common Stock Warrants and Preferred Shares | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Purchases | 7,157 | |||||
Equity Method Investment | Fair Value, Measurements, Recurring | Common Stock | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Purchases | $ 0 | $ 0 |
DEBT - Schedule of Long Term De
DEBT - Schedule of Long Term Debt (Details) $ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||||||
Apr. 30, 2020 CAD ($) | Dec. 31, 2019 | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CAD ($) | Dec. 21, 2022 CAD ($) | Dec. 20, 2022 CAD ($) | Oct. 11, 2022 CAD ($) | Sep. 29, 2022 CAD ($) | Sep. 28, 2022 CAD ($) | Jul. 15, 2022 USD ($) | Jul. 07, 2022 CAD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CAD ($) | Sep. 30, 2021 | Jul. 31, 2021 USD ($) | Aug. 31, 2018 CAD ($) | |
Debt Instrument [Line Items] | ||||||||||||||||
Total funding debt | $ 2,644,427 | |||||||||||||||
Less: debt issuance costs | (37,113) | $ (33,707) | ||||||||||||||
Total Debt | $ 2,607,314 | $ 1,945,793 | ||||||||||||||
Exchange rate | 0.7365 | 0.7365 | 0.7846 | 0.7846 | ||||||||||||
Heights SPV | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Basis spread (as percent) | 4.25% | |||||||||||||||
First Heritage SPV | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Basis spread (as percent) | 4.25% | |||||||||||||||
Flexiti SPV | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Weighted average interest rate | 8.33% | 8.33% | ||||||||||||||
Flexiti Securitization | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum effective interest rate (as percent) | 7.09% | |||||||||||||||
Flexiti Securitization | Canadian Dollar Offered Rate (CDOR) | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Basis spread (as percent) | 3.59% | |||||||||||||||
Canada SPV | Canadian Dollar Offered Rate (CDOR) | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Basis spread (as percent) | 6% | |||||||||||||||
Heights Finance SPV | Basis Spread Scenario One | London Interbank Offered Rate (LIBOR) | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Basis spread (as percent) | 5.25% | 5.25% | ||||||||||||||
U.S. SPV | Basis Spread Scenario One | London Interbank Offered Rate (LIBOR) | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Basis spread (as percent) | 6.25% | 6.25% | ||||||||||||||
Curo Canada Revolving Credit Facility | Prime Rate | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Basis spread (as percent) | 1.95% | |||||||||||||||
Senior Revolver | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Basis spread (as percent) | 5% | |||||||||||||||
Senior Revolver | London Interbank Offered Rate (LIBOR) | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Basis spread (as percent) | 5% | |||||||||||||||
Revolving Credit Facility | Flexiti SPV | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Borrowing Capacity | $ 390,000 | $ 535,000 | $ 500,000 | |||||||||||||
Revolving Credit Facility | Flexiti Securitization | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Borrowing Capacity | $ 526,500 | |||||||||||||||
Revolving Credit Facility | Canada SPV | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Borrowing Capacity | $ 400,000 | |||||||||||||||
Revolving Credit Facility | Heights Finance SPV | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Borrowing Capacity | $ 350,000 | |||||||||||||||
Revolving Credit Facility | U.S. SPV | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Borrowing Capacity | $ 200,000 | |||||||||||||||
Revolving Credit Facility | Curo Canada Revolving Credit Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Borrowing Capacity | $ 10,000 | |||||||||||||||
Senior Notes | Senior Secured Notes Due 2028 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Stated interest rate (as percent) | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% | ||||||||||
Total funding debt | $ 1,000,000 | $ 1,000,000 | ||||||||||||||
Less: debt issuance costs | $ (17,100) | |||||||||||||||
Corporate Debt | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Total funding debt | 1,000,000 | 1,000,000 | ||||||||||||||
Line of Credit | Revolving Credit Facility | Heights SPV | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Borrowing Capacity | 425,000 | |||||||||||||||
Total funding debt | 400,758 | 0 | ||||||||||||||
Line of Credit | Revolving Credit Facility | First Heritage SPV | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Borrowing Capacity | 225,000 | |||||||||||||||
Total funding debt | 182,751 | 0 | ||||||||||||||
Line of Credit | Revolving Credit Facility | Flexiti SPV | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Borrowing Capacity | $ 535,000 | |||||||||||||||
Total funding debt | 343,565 | 176,625 | ||||||||||||||
Line of Credit | Revolving Credit Facility | Flexiti Securitization | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Borrowing Capacity | 526,500 | $ 526,500 | ||||||||||||||
Total funding debt | 387,759 | 242,886 | ||||||||||||||
Line of Credit | Revolving Credit Facility | Canada SPV | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Borrowing Capacity | 400,000 | $ 175,000 | ||||||||||||||
Total funding debt | 294,594 | 160,533 | ||||||||||||||
Line of Credit | Revolving Credit Facility | Heights Finance SPV | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Borrowing Capacity | 350,000 | $ 425,000 | ||||||||||||||
Total funding debt | 0 | 350,000 | ||||||||||||||
Line of Credit | Revolving Credit Facility | U.S. SPV | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Borrowing Capacity | 200,000 | |||||||||||||||
Total funding debt | 0 | $ 49,456 | ||||||||||||||
Line of Credit | Revolving Credit Facility | Curo Canada Revolving Credit Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Borrowing Capacity | $ 5,000 | $ 5,000 | $ 10,000 | |||||||||||||
Total funding debt | 0 | 0 | ||||||||||||||
Line of Credit | Revolving Credit Facility | Senior Revolver | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Borrowing Capacity | 40,000 | |||||||||||||||
Total funding debt | 35,000 | 0 | ||||||||||||||
Funding Debt | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Total funding debt | $ 1,644,427 | $ 979,500 |
DEBT - Senior Secured Notes (De
DEBT - Senior Secured Notes (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Jul. 15, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2022 USD ($) facility | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jul. 31, 2021 USD ($) | Aug. 31, 2018 USD ($) | |
Line of Credit Facility [Line Items] | |||||||
Capitalized financing costs | $ 37,113 | $ 33,707 | |||||
Loss on extinguishment of debt | $ 600 | $ 4,391 | $ 40,206 | $ 0 | |||
Number of credit facilities held | facility | 5 | ||||||
Senior Notes | Senior Secured Notes Due 2028 | |||||||
Line of Credit Facility [Line Items] | |||||||
Stated interest rate (as percent) | 7.50% | 7.50% | 7.50% | 7.50% | |||
Debt instrument, face amount | $ 250,000 | $ 750,000 | |||||
Capitalized financing costs | $ 17,100 | ||||||
Senior Notes | Senior Secured Notes Due 2025 | |||||||
Line of Credit Facility [Line Items] | |||||||
Stated interest rate (as percent) | 8.25% | 8.25% | 8.25% | ||||
Debt instrument, face amount | $ 690,000 | ||||||
Capitalized financing costs | $ 13,900 | ||||||
Loss on extinguishment of debt | $ 40,200 |
DEBT - Heights SPV (Details)
DEBT - Heights SPV (Details) - Heights SPV - Line of Credit - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Jul. 15, 2022 | |
Debt Instrument [Line Items] | ||
Commitment fee (as percent) | 0.50% | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity | $ 425 | |
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Debt Instrument [Line Items] | ||
Maximum effective interest rate (as percent) | 4.25% |
DEBT - First Heritage SPV (Deta
DEBT - First Heritage SPV (Details) - First Heritage SPV - Line of Credit - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Jul. 13, 2022 | |
Debt Instrument [Line Items] | ||
Commitment fee (as percent) | 0.50% | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity | $ 225 | |
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Debt Instrument [Line Items] | ||
Maximum effective interest rate (as percent) | 4.25% |
DEBT - Flexiti SPV (Details)
DEBT - Flexiti SPV (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||||||
Jul. 15, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 CAD ($) | Oct. 11, 2022 CAD ($) | Sep. 29, 2022 CAD ($) | Sep. 28, 2022 CAD ($) | |
Debt Instrument [Line Items] | ||||||||
Loss on extinguishment of debt | $ 600 | $ 4,391 | $ 40,206 | $ 0 | ||||
Flexiti SPV | ||||||||
Debt Instrument [Line Items] | ||||||||
Weighted average interest rate | 8.33% | |||||||
Flexiti SPV | Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fee (as percent) | 0.50% | |||||||
Loss on extinguishment of debt | $ 700 | |||||||
Revolving Credit Facility | Flexiti SPV | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowing Capacity | $ 390 | $ 535 | $ 500 | |||||
Revolving Credit Facility | Flexiti SPV | Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowing Capacity | $ 535 |
DEBT - Flexiti Securitization (
DEBT - Flexiti Securitization (Details) - Flexiti Securitization - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jul. 07, 2022 | Dec. 31, 2021 | |
Canadian Dollar Offered Rate (CDOR) | |||
Debt Instrument [Line Items] | |||
Basis spread (as percent) | 3.59% | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Borrowing Capacity | $ 526.5 | ||
Revolving Credit Facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Borrowing Capacity | $ 526.5 | $ 526.5 |
DEBT - Canada SPV (Details)
DEBT - Canada SPV (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 31, 2022 | Aug. 31, 2018 | |
Line of Credit Facility [Line Items] | |||
Line of credit facility, maturity, extension term (in years) | 3 years | ||
Canada SPV | Canadian Dollar Offered Rate (CDOR) | |||
Line of Credit Facility [Line Items] | |||
Basis spread (as percent) | 6% | ||
Canada SPV | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Borrowing Capacity | $ 400 | ||
Line of Credit | Canada SPV | |||
Line of Credit Facility [Line Items] | |||
Commitment fee (as percent) | 0.50% | ||
Line of Credit | Canada SPV | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Borrowing Capacity | $ 400 | $ 175 |
DEBT - Heights Finance SPV (Det
DEBT - Heights Finance SPV (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jul. 15, 2022 | Dec. 31, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||||
Loss on extinguishment of debt | $ 600 | $ 4,391 | $ 40,206 | $ 0 | |
Heights Finance SPV | Basis Spread Scenario One | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Basis spread (as percent) | 5.25% | 5.25% | |||
Revolving Credit Facility | Heights Finance SPV | |||||
Debt Instrument [Line Items] | |||||
Borrowing Capacity | $ 350,000 | ||||
Revolving Credit Facility | Heights Finance SPV | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Borrowing Capacity | $ 425,000 | $ 350,000 |
DEBT - U.S. SPV (Details)
DEBT - U.S. SPV (Details) $ in Thousands, $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Jul. 15, 2022 USD ($) | Jul. 08, 2022 USD ($) | Apr. 30, 2020 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 CAD ($) | |
Debt Instrument [Line Items] | |||||||
Loss on extinguishment of debt | $ 600 | $ 4,391 | $ 40,206 | $ 0 | |||
U.S. SPV | Basis Spread Scenario One | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread (as percent) | 6.25% | 6.25% | |||||
U.S. SPV | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee (as percent) | 0.50% | ||||||
Revolving Credit Facility | U.S. SPV | |||||||
Debt Instrument [Line Items] | |||||||
Borrowing Capacity | $ 200 | ||||||
Loss on extinguishment of debt | $ 3,100 | ||||||
Revolving Credit Facility | U.S. SPV | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Borrowing Capacity | $ 200 |
DEBT - Senior Revolver (Details
DEBT - Senior Revolver (Details) - Senior Revolver $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
London Interbank Offered Rate (LIBOR) | |
Debt Instrument [Line Items] | |
Basis spread (as percent) | 5% |
Line of Credit | Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Borrowing Capacity | $ 40 |
Line of Credit | Letter of Credit | |
Debt Instrument [Line Items] | |
Borrowing Capacity | $ 4 |
Debt instrument, term | 1 year |
DEBT - Curo Canada Revolving Cr
DEBT - Curo Canada Revolving Credit Facility (Details) - CURO Canada Revolving Credit Facility - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 21, 2022 | Dec. 20, 2022 | |
Prime Rate | |||
Debt Instrument [Line Items] | |||
Basis spread (as percent) | 1.95% | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Borrowing Capacity | $ 10 | ||
Revolving Credit Facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Borrowing Capacity | $ 5 | $ 5 | $ 10 |
DEBT - Derivative Instruments a
DEBT - Derivative Instruments and Hedging Activities (Details) $ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) | Oct. 11, 2022 CAD ($) | Sep. 29, 2022 CAD ($) | Sep. 28, 2022 CAD ($) | Jul. 07, 2022 CAD ($) | |
Debt Instrument [Line Items] | |||||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | ||||
Flexiti SPV | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Borrowing Capacity | $ 390 | $ 535 | $ 500 | ||
Interest rate swap, notional amount | $ 390 | ||||
Flexiti SPV | Interest Rate Swap | |||||
Debt Instrument [Line Items] | |||||
Gain on interest rate swap | $ 0.6 | ||||
Flexiti SPV | Interest Rate Swap | Designated as Hedging Instrument | |||||
Debt Instrument [Line Items] | |||||
Interest rate swap | $ 0.8 | ||||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | ||||
Flexiti Securitization | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Borrowing Capacity | $ 526.5 | ||||
Interest rate swap, notional amount | $ 526.5 | ||||
Flexiti Securitization | Interest Rate Swap | |||||
Debt Instrument [Line Items] | |||||
Gain on interest rate swap | $ 6.6 | ||||
Flexiti Securitization | Interest Rate Swap | Designated as Hedging Instrument | |||||
Debt Instrument [Line Items] | |||||
Interest rate swap | $ 6.6 | ||||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets |
DEBT - Ranking and Guarantees (
DEBT - Ranking and Guarantees (Details) - Senior Secured Notes Due 2025 - Senior Notes | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Aug. 31, 2018 | |
Debt Instrument [Line Items] | ||||
Stated interest rate (as percent) | 8.25% | 8.25% | 8.25% | |
Debt Instrument, Redemption, Period One | ||||
Debt Instrument [Line Items] | ||||
Redemption price as a percent of principal redeemed (as percent) | 40% | |||
Redemption price, percentage (as percent) | 107.50% | |||
Debt Instrument, Redemption, Period Two | ||||
Debt Instrument [Line Items] | ||||
Redemption price, percentage (as percent) | 103.80% | |||
Debt Instrument, Redemption, Period Three | ||||
Debt Instrument [Line Items] | ||||
Redemption price, percentage (as percent) | 101.90% | |||
Debt Instrument, Redemption, Period Four | ||||
Debt Instrument [Line Items] | ||||
Redemption price, percentage (as percent) | 100% |
DEBT - Future Maturities of Deb
DEBT - Future Maturities of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
2023 | $ 35,000 | |
2024 | 0 | |
2025 | 1,314,833 | |
2026 | 294,594 | |
2027 | 0 | |
Thereafter | 1,000,000 | |
Debt (before deferred financing costs and discounts) | 2,644,427 | |
Less: deferred financing costs and discounts | 37,113 | |
Debt, net | $ 2,607,314 | $ 1,945,793 |
COMMITMENTS AND CONTENGENCIES (
COMMITMENTS AND CONTENGENCIES (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Oct. 27, 2022 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) | Jul. 31, 2020 lawsuit | |
Loss Contingencies [Line Items] | ||||
Litigation settlement amount | $ 9,000 | |||
Insurance retention | $ 2,500 | |||
Litigation expense incurred | $ 0 | |||
Legal fees paid by insurers | $ 345 | |||
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 |
INCOME TAXES - Income Tax Expen
INCOME TAXES - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
(Loss) income before taxes | |||
U.S. | $ (140,463) | $ 86,106 | $ 59,741 |
Non-U.S. | (53,697) | (5,549) | 20,602 |
(Loss) income from continuing operations before taxes | (194,160) | 80,557 | 80,343 |
Current provision (benefit) | |||
Federal | 16,254 | 21,549 | (14,585) |
State | 3,783 | 4,553 | 5,959 |
Foreign | 9,120 | 13,639 | 3,925 |
Current provision (benefit) | 29,157 | 39,741 | (4,701) |
Deferred tax (benefit) provision | |||
Federal | (19,691) | (5,022) | 14,949 |
State | (1,873) | 154 | (1,247) |
Foreign | (16,271) | (13,650) | (3,106) |
Deferred tax (benefit) provision | (37,835) | (18,518) | 10,596 |
(Benefit) provision for income taxes | $ (8,678) | $ 21,223 | $ 5,895 |
INCOME TAXES - Effective Tax Ra
INCOME TAXES - Effective Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income tax (benefit) expense using the statutory federal rate in effect | $ (40,774) | $ 16,917 | $ 16,872 |
Tax effect of: | |||
Effects of foreign rates different than U.S. statutory rate | 3,222 | 518 | (1,236) |
State, local and provincial income taxes, net of federal benefit | (2,635) | 3,359 | 6,619 |
Tax credits | (678) | (802) | (3,188) |
Nondeductible expenses | 1,801 | 1,090 | 564 |
Valuation allowance | 1,349 | (275) | (2,686) |
Prior year income tax re-determination | (602) | 0 | 0 |
Share-based compensation | 132 | (705) | 1,119 |
Gain on sale of business | 8,484 | 0 | 0 |
Impairment of Goodwill | 22,369 | 0 | 0 |
Federal NOL carryback | 0 | 0 | (11,251) |
Prior year basis adjustment | 0 | 0 | (659) |
Change in fair value of contingent consideration | (1,187) | 944 | 0 |
Other | (159) | 177 | (259) |
(Benefit) provision for income taxes | $ (8,678) | $ 21,223 | $ 5,895 |
Effective income tax rate (as percent) | 4.50% | 26.30% | 7.30% |
Statutory federal income tax rate (as percent) | 21% | 21% | 21% |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2020 | Dec. 31, 2021 | |
Income Tax Contingency [Line Items] | |||
Income tax benefit from CARES Act | $ (11,300) | ||
Unrecognized tax benefits | $ 1,958 | 1,100 | $ 250 |
Unrecognized tax benefits that would impact effective tax rate | 2,000 | ||
Undistributed foreign earnings | 255,200 | ||
Deferred tax assets, tax credit carryforwards, foreign | $ 3,000 | ||
Foreign | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards | 34,800 | ||
Operating loss carryforwards, valuation allowance | 1,200 | $ 4,600 | |
State | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards | 3,500 | ||
Operating loss carryforwards, valuation allowance | 3,200 | ||
Canada Revenue Agency | |||
Income Tax Contingency [Line Items] | |||
Deferred tax assets, capital loss carryforwards | 1,700 | ||
Canada Revenue Agency | Pro forma | |||
Income Tax Contingency [Line Items] | |||
Expected tax if earnings were distributed to the U.S. | $ 12,800 |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at the beginning of year | $ 250 | $ 1,100 |
Additions for tax positions related to prior years | 1,648 | 125 |
Additions for tax positions related to the current year | 60 | 125 |
Settlements with taxing authorities | 0 | (1,100) |
Balance at end of year | $ 1,958 | $ 250 |
INCOME TAXES - Deferred Income
INCOME TAXES - Deferred Income Tax Assets and Liabilities Sources (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets related to: | ||||
Loans receivable | $ 9,913 | $ 0 | ||
Accrued expenses and other reserves | 7,309 | 2,960 | ||
Lease liability | 16,055 | 26,777 | ||
Compensation accruals | 6,826 | 5,845 | ||
Deferred revenue | 1,811 | 204 | ||
State and provincial NOL carryforwards | 18,560 | 15,547 | ||
Foreign NOL and capital loss carryforwards | 21,378 | 17,090 | ||
Tax credit carryforwards | 3,872 | 3,905 | ||
Gross deferred tax assets | 85,724 | 72,328 | ||
Less: Valuation allowance | (9,719) | (7,732) | $ (5,695) | $ (8,328) |
Net deferred tax assets | 76,005 | 64,596 | ||
Deferred tax liabilities related to: | ||||
Property and equipment | (2,820) | (14,950) | ||
Right of use asset | (15,648) | (25,304) | ||
Goodwill and other intangible assets | (2,730) | (9,914) | ||
Prepaid expenses and other assets | (3,055) | (466) | ||
Hedge accounting | (1,859) | 0 | ||
Loans receivable | 0 | (4,367) | ||
Gross deferred tax liabilities | (26,112) | (55,001) | ||
Net deferred tax assets | $ 49,893 | $ 9,595 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets | $ 49,893 | $ 15,639 |
Deferred tax liabilities | 0 | (6,044) |
Net deferred tax assets | $ 49,893 | $ 9,595 |
INCOME TAXES - Valuation Allowa
INCOME TAXES - Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Tax Assets, Valuation Allowance [Roll Forward] | |||
Balance at the beginning of year | $ 7,732 | $ 5,695 | $ 8,328 |
Increase (decrease) to balance charged as expense | 1,349 | (275) | (2,686) |
Increase to balance charged to opening balance sheet of the acquisition | 1,044 | 1,873 | 0 |
(Decrease) to balance for the divestiture | (542) | 0 | 0 |
Increase (decrease) to balance charged to Other comprehensive income | 136 | 392 | (378) |
Effect of foreign currency translation | 0 | 47 | 431 |
Balance at end of year | $ 9,719 | $ 7,732 | $ 5,695 |
EARNINGS PER SHARE - Summary of
EARNINGS PER SHARE - Summary of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Net (loss) income from continuing operations | $ (185,484) | $ 59,334 | $ 74,448 |
Net income from discontinued operations | 0 | 0 | 1,285 |
Net income | $ (185,484) | $ 59,334 | $ 75,733 |
Weight average common shares - basic (in shares) | 40,428 | 41,155 | 40,886 |
Dilutive effect of stock options and restricted stock units (in shares) | 0 | 1,988 | 1,205 |
Weighted average common shares - diluted (in shares) | 40,428 | 43,143 | 42,091 |
(Loss) earnings per share: | |||
Basic earnings per share, continuing operations (in usd per share) | $ (4.59) | $ 1.44 | $ 1.82 |
Basic earnings per share, discontinued operations (in usd per share) | 0 | 0 | 0.03 |
Basic earnings per share (in usd per share) | (4.59) | 1.44 | 1.85 |
Diluted (loss) earnings per share: | |||
Diluted earnings per share, continuing operations (in usd per share) | (4.59) | 1.38 | 1.77 |
Diluted earnings per share, discontinued operations (in usd per share) | 0 | 0 | 0.03 |
Diluted earnings per share (in usd per share) | $ (4.59) | $ 1.38 | $ 1.8 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2.8 | 0.2 | 0.8 |
SHARE-BASED COMPENSATION - Narr
SHARE-BASED COMPENSATION - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2017 | Dec. 31, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock option grants in period (in shares) | 0 | 0 | 0 | |||
Unrecognized compensation costs | $ 22.2 | $ 22.2 | ||||
Compensation cost not yet recognized, period for recognition | 1 year 10 months 24 days | |||||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting rights (as percent) | 20% | |||||
Term of award | 10 years | |||||
Vesting period | 5 years | |||||
Market-Based | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
Market-Based | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
Market-Based | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 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) | 9,000,000 | |||||
2010 Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized (in shares) | 2,160,000 |
SHARE-BASED COMPENSATION - Stoc
SHARE-BASED COMPENSATION - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock Options | ||||
Beginning balance (in shares) | 515,088 | 1,130,112 | 1,404,622 | |
Granted (in shares) | 0 | 0 | 0 | |
Exercised (in shares) | 0 | (615,024) | (274,510) | |
Forfeited (in shares) | 0 | 0 | 0 | |
Ending balance (in shares) | 515,088 | 515,088 | 1,130,112 | 1,404,622 |
Weighted Average Exercise Price | ||||
Beginning balance (in usd per share) | $ 4.83 | $ 3.74 | $ 3.56 | |
Granted (in usd per share) | 0 | 0 | 0 | |
Exercised (in usd per share) | 0 | 2.83 | 2.79 | |
Forfeited (in usd per share) | 0 | 0 | 0 | |
Ending balance (in usd per share) | $ 4.83 | 4.83 | 3.74 | $ 3.56 |
Options exercisable (in shares) | 515,088 | |||
Options exercisable, weighted average exercise price (in usd per share) | $ 4.83 | |||
Options forfeited, weighted average grant date fair value (in usd per share) | $ 0 | $ 0 | $ 0 | |
Options outstanding, weighted average remaining contractual term | 3 years 2 months 12 days | 4 years 2 months 12 days | 2 years 7 months 6 days | 2 years 7 months 6 days |
Options exercisable, weighted average remaining contractual term | 3 years 2 months 12 days | |||
Options outstanding, intrinsic value | $ (0.7) | $ 5.8 | $ 12 | $ 12.1 |
Options exercised, intrinsic value | $ 8.1 | $ 3.2 | ||
Options exercisable, intrinsic value | $ (0.7) |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summary of Restricted Stock Units (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Time-Based | |||
Number of Shares | |||
Outstanding, beginning of period (in shares) | 1,675,928 | 1,012,792 | 1,061,753 |
Granted (in shares) | 1,649,980 | 1,238,564 | 694,213 |
Vested (in shares) | (785,751) | (494,790) | (716,268) |
Forfeited (in shares) | (444,088) | (80,638) | (26,906) |
Outstanding, end of period (in shares) | 2,096,069 | 1,675,928 | 1,012,792 |
Weighted Average Grant Date Fair Value per Share | |||
Weighted average grant date fair value, beginning of period (in usd per share) | $ 13.27 | $ 10.26 | $ 11.47 |
Weighted average grant date fair value, end of period (in usd per share) | 10.87 | 13.27 | 10.26 |
Weighted average grant date fair value, granted (in usd per share) | 9.75 | 15.51 | 10.4 |
Weighted average grant date fair value, vested (in usd per share) | 13.8 | 11.04 | 12.86 |
Weighted average grant date fair value, forfeited (in usd per share) | $ 11.9 | $ 11.46 | $ 11.89 |
Market-Based | |||
Number of Shares | |||
Outstanding, beginning of period (in shares) | 1,006,734 | 758,713 | 394,861 |
Granted (in shares) | 1,422,886 | 299,053 | 368,539 |
Vested (in shares) | 0 | 0 | 0 |
Forfeited (in shares) | (701,258) | (51,032) | (4,687) |
Outstanding, end of period (in shares) | 1,728,362 | 1,006,734 | 758,713 |
Performance-Based | |||
Number of Shares | |||
Outstanding, beginning of period (in shares) | 253,310 | 0 | 0 |
Granted (in shares) | 0 | 253,310 | 0 |
Vested (in shares) | (7,568) | 0 | 0 |
Forfeited (in shares) | (101,252) | 0 | 0 |
Outstanding, end of period (in shares) | 144,490 | 253,310 | 0 |
SHARE-BASED COMPENSATION - Shar
SHARE-BASED COMPENSATION - Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Payment Arrangement [Abstract] | |||
Pre-tax share-based compensation expense | $ 13,957 | $ 13,976 | $ 12,910 |
Income tax benefit | (3,283) | (4,475) | (1,164) |
Total share-based compensation expense, net of tax | $ 10,674 | $ 9,501 | $ 11,746 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | Dec. 31, 2022 |
Leases [Abstract] | |
Operating lease original term of contract | 5 years |
LEASES - Summary of Operating L
LEASES - Summary of Operating Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating lease costs: | |||
Operating lease cost | $ 34,820 | $ 34,591 | $ 34,214 |
Cash paid for amounts included in the measurement of operating lease liabilities | 28,414 | 36,235 | 34,651 |
ROU assets (divested) obtained | $ (24,749) | $ 9,682 | $ 18,847 |
Weighted average remaining lease term - Operating leases | 4 years 4 months 24 days | 4 years 10 months 24 days | 5 years 8 months 12 days |
Weighted average discount rate - Operating leases | 7.80% | 8.30% | 9.90% |
Third-Party | |||
Operating lease costs: | |||
Operating lease cost | $ 32,538 | $ 31,197 | $ 30,828 |
Related-Party | |||
Operating lease costs: | |||
Operating lease cost | $ 2,282 | $ 3,394 | $ 3,386 |
LEASES - Schedule of Future Min
LEASES - Schedule of Future Minimum Lease Payments, ASC 842 (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Lessee, Lease, Description [Line Items] | |
2023 | $ 24,939 |
2024 | 18,065 |
2025 | 12,462 |
2026 | 7,353 |
2027 | 4,950 |
Thereafter | 9,132 |
Total | 76,901 |
Less: Imputed interest | (14,054) |
Operating lease liabilities | 62,847 |
Third-Party | |
Lessee, Lease, Description [Line Items] | |
2023 | 24,323 |
2024 | 17,433 |
2025 | 11,813 |
2026 | 6,686 |
2027 | 4,265 |
Thereafter | 8,139 |
Total | 72,659 |
Less: Imputed interest | (12,878) |
Operating lease liabilities | 59,781 |
Related-Party | |
Lessee, Lease, Description [Line Items] | |
2023 | 616 |
2024 | 632 |
2025 | 649 |
2026 | 667 |
2027 | 685 |
Thereafter | 993 |
Total | 4,242 |
Less: Imputed interest | (1,176) |
Operating lease liabilities | $ 3,066 |
DIVIDENDS - Narrative (Details)
DIVIDENDS - Narrative (Details) - $ / shares | Aug. 03, 2022 | Apr. 28, 2022 | Feb. 04, 2022 | Oct. 27, 2021 | Jul. 28, 2021 | May 31, 2021 | May 03, 2021 | Jan. 29, 2021 | Feb. 29, 2020 |
Equity [Abstract] | |||||||||
Quarterly cash dividend (in usd per share) | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.055 | $ 0.055 |
Dividends payable, annualized amount (in usd per share) | $ 0.22 |
DIVIDENDS - Schedule of Dividen
DIVIDENDS - Schedule of Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||||||||||||||
Aug. 26, 2022 | May 23, 2022 | Mar. 01, 2022 | Nov. 22, 2021 | Aug. 19, 2021 | May 27, 2021 | Mar. 02, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Aug. 03, 2022 | Apr. 28, 2022 | Feb. 04, 2022 | Oct. 27, 2021 | Jul. 28, 2021 | May 31, 2021 | May 03, 2021 | Jan. 29, 2021 | Feb. 29, 2020 | |
Equity [Abstract] | |||||||||||||||||||
Quarterly cash dividend (in usd per share) | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.055 | $ 0.055 | ||||||||||
Dividends Paid | $ 4,453 | $ 4,440 | $ 4,517 | $ 4,453 | $ 4,556 | $ 4,580 | $ 2,284 | $ 13,715 | $ 15,935 | $ 9,088 |
SEGMENT REPORTING - Narrative (
SEGMENT REPORTING - Narrative (Details) - Dec. 31, 2022 | location | state | province | partner | territory | store |
Segment Reporting Information [Line Items] | ||||||
Number of retail locations | location | 496 | |||||
Canada | ||||||
Segment Reporting Information [Line Items] | ||||||
Number of territories with online presence | territory | 1 | |||||
U.S. Direct Lending | ||||||
Segment Reporting Information [Line Items] | ||||||
Number of retail locations | 490 | |||||
Number of states/provinces with online presence | state | 13 | |||||
Canada Direct Lending | ||||||
Segment Reporting Information [Line Items] | ||||||
Number of states/provinces with online presence | province | 8 | |||||
Number of states/provinces with retail locations | province | 8 | |||||
Number of Stores | 150 | |||||
Canada POS Lending | ||||||
Segment Reporting Information [Line Items] | ||||||
Number of retail locations | 8,400 | |||||
Number of merchant partners | partner | 3,500 | |||||
Number of geographical locations | 10 | 2 |
SEGMENT REPORTING - Summary of
SEGMENT REPORTING - Summary of Financial Information by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues by segment: | |||
Consolidated revenue | $ 1,025,918 | $ 817,843 | $ 847,396 |
Net revenues by segment: | |||
Consolidated net revenue | 625,593 | 572,175 | 558,585 |
Segment (loss) income before income taxes: | |||
Consolidated (loss) income before income taxes | (194,162) | 80,557 | 80,343 |
Property, Plant and Equipment [Abstract] | |||
Consolidated expenditures for long-lived assets | 45,821 | 23,579 | 10,718 |
Total gross loans receivable | 2,087,833 | 1,548,318 | |
U.S. Direct Lending | |||
Revenues by segment: | |||
Consolidated revenue | 615,722 | 525,962 | 638,524 |
Net revenues by segment: | |||
Consolidated net revenue | 375,144 | 359,929 | 408,360 |
Segment (loss) income before income taxes: | |||
Consolidated (loss) income before income taxes | (175,350) | 47,517 | 34,172 |
Property, Plant and Equipment [Abstract] | |||
Consolidated expenditures for long-lived assets | 18,173 | 13,450 | 10,079 |
Total gross loans receivable | 773,380 | 661,945 | |
Canada Direct Lending | |||
Revenues by segment: | |||
Consolidated revenue | 303,750 | 257,039 | 208,872 |
Net revenues by segment: | |||
Consolidated net revenue | 189,183 | 202,042 | 150,225 |
Segment (loss) income before income taxes: | |||
Consolidated (loss) income before income taxes | 51,163 | 88,731 | 46,171 |
Property, Plant and Equipment [Abstract] | |||
Consolidated expenditures for long-lived assets | 6,768 | 2,238 | 639 |
Total gross loans receivable | 481,015 | 427,197 | |
Canada POS Lending | |||
Revenues by segment: | |||
Consolidated revenue | 106,446 | 34,842 | 0 |
Net revenues by segment: | |||
Consolidated net revenue | 61,266 | 10,204 | 0 |
Segment (loss) income before income taxes: | |||
Consolidated (loss) income before income taxes | (69,975) | (55,691) | 0 |
Property, Plant and Equipment [Abstract] | |||
Consolidated expenditures for long-lived assets | 20,880 | 7,891 | $ 0 |
Total gross loans receivable | $ 833,438 | $ 459,176 |
SEGMENT REPORTING - Summary o_2
SEGMENT REPORTING - Summary of Long-lived Assets by Geographical Region (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net long-lived assets | $ 31,957 | $ 54,635 |
U.S. Direct Lending | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net long-lived assets | 13,993 | 32,753 |
Canada Direct Lending | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net long-lived assets | 15,239 | 21,072 |
Canada POS Lending | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net long-lived assets | $ 2,725 | $ 810 |
ACQUISITIONS AND DIVESTITURE -
ACQUISITIONS AND DIVESTITURE - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 10 Months Ended | 12 Months Ended | ||||||||||||||||
Jul. 13, 2022 USD ($) | Jul. 08, 2022 USD ($) | May 18, 2022 USD ($) | Dec. 27, 2021 USD ($) state branch | Mar. 10, 2021 USD ($) | Jan. 03, 2020 USD ($) | Jul. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Sep. 30, 2021 | Jul. 31, 2021 | Mar. 31, 2021 USD ($) | |
Business Acquisition [Line Items] | |||||||||||||||||||||
Goodwill | $ 276,269 | $ 429,792 | $ 429,792 | $ 276,269 | $ 276,269 | $ 429,792 | $ 136,091 | ||||||||||||||
Measurement period adjustment | 11,825 | (4,478) | |||||||||||||||||||
Interest and fee revenue | $ 7,700 | ||||||||||||||||||||
Contingent consideration related to acquisition | $ 16,884 | $ 26,508 | $ 26,508 | $ 16,884 | 16,884 | 26,508 | $ 20,600 | ||||||||||||||
Total revenue | 1,025,918 | 817,843 | 847,396 | ||||||||||||||||||
Operating expenses | (263,230) | (4,704) | (68,163) | ||||||||||||||||||
Incurred costs with acquisition | 82,811 | 68,473 | 47,048 | ||||||||||||||||||
Total proceeds | 288,980 | 0 | 0 | ||||||||||||||||||
Gain on sale of business | $ 68,400 | $ 68,400 | 68,443 | 0 | 0 | ||||||||||||||||
(Loss) income from continuing operations before income taxes | $ (194,162) | $ 80,557 | 80,343 | ||||||||||||||||||
Senior Secured Notes Due 2028 | Senior Notes | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Stated interest rate (as percent) | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% | |||||||||||||
U.S. Legacy Direct Lending Business | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
(Loss) income from continuing operations before income taxes | $ 60,700 | $ 140,200 | |||||||||||||||||||
Discontinued Operations, Disposed of by Sale | U.S. Legacy Direct Lending Business | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Total proceeds | $ 349,207 | ||||||||||||||||||||
Cash received at close of divestiture of business | 314,200 | ||||||||||||||||||||
Additional proceeds from divestiture of businesses | 35,000 | ||||||||||||||||||||
Gain on sale of business | $ 68,444 | $ 68,400 | $ 68,400 | 68,400 | |||||||||||||||||
Flexiti | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Total cash consideration transferred | $ 122,500 | ||||||||||||||||||||
Goodwill | $ 44,901 | $ 40,400 | $ 40,421 | $ 40,421 | $ 40,400 | 40,400 | 40,421 | ||||||||||||||
Business acquisition, incurred costs related to this acquisition | 3,300 | 3,300 | 3,300 | ||||||||||||||||||
Equity interests acquired (as a percentage) | 100% | ||||||||||||||||||||
Payments to acquire businesses, net of cash acquired | $ 1,000 | 91,203 | 0 | ||||||||||||||||||
Business combination, consideration transferred, equity interests issued and issuable | $ 8,100 | ||||||||||||||||||||
Measurement period adjustment | $ (4,480) | 4,500 | |||||||||||||||||||
Payments to acquire businesses, gross | 86,500 | ||||||||||||||||||||
Debt costs in conjunction with the acquisition | 6,300 | ||||||||||||||||||||
Contingent consideration related to acquisition | 20,600 | 16,900 | 16,900 | 16,900 | |||||||||||||||||
Total revenue | 34,800 | ||||||||||||||||||||
Operating expenses | $ 50,900 | ||||||||||||||||||||
Consideration transferred related to RSU contingent consideration | $ 4,000 | ||||||||||||||||||||
RSU grants, requisite service period | 2 years | ||||||||||||||||||||
Flexiti | Maximum | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Contingent consideration related to acquisition | $ 32,800 | ||||||||||||||||||||
Flexiti | Minimum | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Contingent consideration related to acquisition | $ 0 | ||||||||||||||||||||
Heights SPV | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Total cash consideration transferred | $ 360,000 | ||||||||||||||||||||
Goodwill | $ 253,857 | 265,682 | 265,682 | 265,682 | |||||||||||||||||
Equity interests acquired (as a percentage) | 100% | ||||||||||||||||||||
Payments to acquire businesses, net of cash acquired | $ 335,000 | ||||||||||||||||||||
Business combination, consideration transferred, equity interests issued and issuable | $ 25,000 | ||||||||||||||||||||
Number of branches | branch | 390 | ||||||||||||||||||||
Number of states in which entity operates | state | 11 | ||||||||||||||||||||
Measurement period adjustment | 3,500 | (11,825) | 11,800 | ||||||||||||||||||
Measurement period adjustment, income tax receivable | 4,200 | 4,209 | |||||||||||||||||||
Measurement period adjustment, accounts payable | 4,200 | 4,209 | |||||||||||||||||||
First Heritage SPV | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Total cash consideration transferred | $ 140,000 | $ 140,000 | |||||||||||||||||||
Goodwill | $ 75,365 | ||||||||||||||||||||
Business acquisition, incurred costs related to this acquisition | $ 10,100 | $ 10,100 | 10,100 | ||||||||||||||||||
Payments to acquire businesses, net of cash acquired | 131,012 | 0 | 0 | ||||||||||||||||||
Ad Astra | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Total cash consideration transferred | $ 17,811 | ||||||||||||||||||||
Goodwill | $ 14,791 | ||||||||||||||||||||
Equity interests acquired (as a percentage) | 100% | ||||||||||||||||||||
Payments to acquire businesses, net of cash acquired | $ 14,400 | $ 0 | 0 | 14,418 | |||||||||||||||||
Operating expenses | $ 10,000 | $ 9,600 | |||||||||||||||||||
Incurred costs with acquisition | $ 15,500 | ||||||||||||||||||||
Goodwill, estimated amount tax-deductible | $ 15,400 |
ACQUISITIONS AND DIVESTITURE _2
ACQUISITIONS AND DIVESTITURE - Schedule of Assets Acquired and Liabilities Assumed - First Heritage Credit (Details) - USD ($) $ in Thousands | 3 Months Ended | 10 Months Ended | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Jul. 13, 2022 | Dec. 27, 2021 | Mar. 10, 2021 | Dec. 31, 2020 | |
Liabilities | |||||||
Goodwill | $ 276,269 | $ 429,792 | $ 276,269 | $ 136,091 | |||
First Heritage SPV | |||||||
Assets | |||||||
Cash and cash equivalents | $ 31,396 | ||||||
Restricted cash | 1,933 | ||||||
Gross loans receivable | 218,011 | ||||||
Prepaid expenses and other | 1,285 | ||||||
Property and equipment | 345 | ||||||
Right-of-use assets | 4,241 | ||||||
Intangibles, net | 10,670 | ||||||
Total assets | 267,880 | ||||||
Liabilities | |||||||
Accounts payable and accrued liabilities | 4,270 | ||||||
Lease liabilities | 4,241 | ||||||
Debt | 170,392 | ||||||
Total liabilities | 178,904 | ||||||
Net assets acquired | 88,976 | ||||||
Total consideration paid | 164,341 | ||||||
Goodwill | 75,365 | ||||||
Gross contractual loans receivable | 236,100 | ||||||
Estimate of gross contractual loans that will not be collected | $ 18,100 | ||||||
Heights SPV | |||||||
Assets | |||||||
Cash and cash equivalents | 13,564 | 13,564 | $ 13,564 | ||||
Restricted cash | 33,630 | 33,630 | 33,630 | ||||
Gross loans receivable | 456,251 | 456,251 | 471,630 | ||||
Measurement period adjustment, accounts payable | 4,200 | 4,209 | |||||
Prepaid expenses and other | 7,410 | 7,410 | 7,410 | ||||
Property and equipment | 4,748 | 4,748 | 4,748 | ||||
Right-of-use assets | 16,111 | 16,111 | 16,111 | ||||
Intangibles, net | 11,900 | 11,900 | 11,900 | ||||
Total assets | 553,924 | 553,924 | 562,617 | ||||
Measurement period adjustment, income tax receivable | 4,200 | 4,209 | |||||
Liabilities | |||||||
Accounts payable and accrued liabilities | 23,395 | 23,395 | 19,186 | ||||
Lease liabilities | 16,315 | 16,315 | 16,315 | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Deferred Tax Liabilities | (1,077) | ||||||
Debt | 350,000 | 350,000 | 350,000 | ||||
Total liabilities | 391,491 | 391,491 | 388,359 | ||||
Net assets acquired | 162,433 | 162,433 | 174,258 | ||||
Total consideration paid | 428,115 | 428,115 | 428,115 | ||||
Goodwill | 265,682 | 265,682 | 253,857 | ||||
Gross contractual loans receivable | 485,400 | ||||||
Estimate of gross contractual loans that will not be collected | 29,100 | ||||||
Deferred tax assets, measurement period adjustment | 2,477 | ||||||
Deferred tax assets | 2,477 | 2,477 | $ 0 | ||||
Flexiti | |||||||
Assets | |||||||
Cash and cash equivalents | 1,267 | $ 1,267 | |||||
Gross loans receivable | 196,138 | 196,138 | |||||
Prepaid expenses and other | 687 | 687 | |||||
Property and equipment | 460 | 460 | |||||
Right-of-use assets | 616 | 616 | |||||
Intangibles, net | 54,448 | 54,448 | 54,448 | 50,876 | |||
Total assets | 257,265 | 252,785 | |||||
Liabilities | |||||||
Accounts payable and accrued liabilities | 9,356 | 9,356 | |||||
Lease liabilities | 616 | 616 | |||||
Total liabilities | 184,339 | 184,339 | |||||
Net assets acquired | 72,926 | 68,446 | |||||
Total consideration paid | 113,347 | 113,347 | |||||
Goodwill | $ 40,400 | 40,421 | $ 40,400 | 44,901 | |||
Gross contractual loans receivable | 208,600 | ||||||
Estimate of gross contractual loans that will not be collected | 12,500 | ||||||
Deferred tax assets, measurement period adjustment | 908 | ||||||
Deferred tax assets | $ 3,649 | $ 2,741 |
ACQUISITIONS AND DIVESTITURE _3
ACQUISITIONS AND DIVESTITURE - Components of Identifiable Intangible Assets - First Heritage Credit (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 13, 2022 | Dec. 31, 2022 | |
Trade name | ||
Business Acquisition [Line Items] | ||
Useful Life (in years) | 11 years 7 months 6 days | |
Customer relationships | ||
Business Acquisition [Line Items] | ||
Useful Life (in years) | 2 years 4 months 24 days | |
First Heritage SPV | ||
Business Acquisition [Line Items] | ||
Fair Value | $ 10,670 | |
First Heritage SPV | Trade name | ||
Business Acquisition [Line Items] | ||
Fair Value | $ 3,790 | |
Useful Life (in years) | 10 years | |
First Heritage SPV | Customer relationships | ||
Business Acquisition [Line Items] | ||
Fair Value | $ 6,880 | |
Useful Life (in years) | 3 years 6 months |
ACQUISITIONS AND DIVESTITURE _4
ACQUISITIONS AND DIVESTITURE - Schedule of Assets Acquired and Liabilities Assumed - Heights (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 27, 2021 | Dec. 31, 2020 | |
Liabilities | ||||||
Measurement period adjustment | $ 11,825 | $ (4,478) | ||||
Goodwill | $ 276,269 | $ 276,269 | 276,269 | $ 429,792 | $ 136,091 | |
Heights SPV | ||||||
Assets | ||||||
Cash and cash equivalents | 13,564 | 13,564 | 13,564 | $ 13,564 | ||
Restricted cash | 33,630 | 33,630 | 33,630 | 33,630 | ||
Gross loans receivable | 456,251 | 456,251 | 456,251 | 471,630 | ||
Gross loans receivable, measurement period adjustments | (15,379) | |||||
Income tax receivable | 7,735 | 7,735 | 7,735 | 3,526 | ||
Prepaid expenses and other | 7,410 | 7,410 | 7,410 | 7,410 | ||
Property and equipment | 4,748 | 4,748 | 4,748 | 4,748 | ||
Right-of-use assets | 16,111 | 16,111 | 16,111 | 16,111 | ||
Intangibles, net | 11,900 | 11,900 | 11,900 | 11,900 | ||
Other assets | 98 | 98 | 98 | 98 | ||
Total assets | 553,924 | 553,924 | 553,924 | 562,617 | ||
Total assets, measurement period adjustments | (8,693) | |||||
Liabilities | ||||||
Accounts payable and accrued liabilities | 23,395 | 23,395 | 23,395 | 19,186 | ||
Lease liabilities | 16,315 | 16,315 | 16,315 | 16,315 | ||
Deferred tax liability | 0 | 0 | 0 | 1,077 | ||
Accrued interest on debt | 1,781 | 1,781 | 1,781 | 1,781 | ||
Debt | 350,000 | 350,000 | 350,000 | 350,000 | ||
Total liabilities | 391,491 | 391,491 | 391,491 | 388,359 | ||
Total liabilities, measurement period adjustments | 3,132 | |||||
Net assets acquired | 162,433 | 162,433 | 162,433 | 174,258 | ||
Measurement period adjustment | 3,500 | (11,825) | 11,800 | |||
Total consideration paid | 428,115 | 428,115 | 428,115 | 428,115 | ||
Goodwill | $ 265,682 | $ 265,682 | $ 265,682 | 253,857 | ||
Gross contractual loans receivable | 485,400 | |||||
Estimate of gross contractual loans that will not be collected | $ 29,100 |
ACQUISITIONS AND DIVESTITURE _5
ACQUISITIONS AND DIVESTITURE - Schedule of Assets Acquired and Liabilities Assumed - Flexiti (Details) - USD ($) $ in Thousands | 10 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 10, 2021 | Dec. 31, 2020 | |
Liabilities | |||||
Goodwill | $ 429,792 | $ 276,269 | $ 429,792 | $ 136,091 | |
Measurement period adjustment | 11,825 | (4,478) | |||
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, net | 54,448 | 54,448 | 54,448 | 50,876 | |
Intangibles, measurement period adjustments | 3,572 | ||||
Deferred tax assets | 3,649 | 3,649 | 2,741 | ||
Deferred tax assets, measurement period adjustment | 908 | ||||
Total assets | 257,265 | 257,265 | 252,785 | ||
Total assets, measurement period adjustments | 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 | 72,926 | 72,926 | 68,446 | ||
Net assets acquired, measurement period adjustments | 4,480 | ||||
Total consideration paid | 113,347 | 113,347 | 113,347 | ||
Goodwill | 40,421 | $ 40,400 | 40,421 | 44,901 | |
Measurement period adjustment | $ (4,480) | $ 4,500 | |||
Gross contractual loans receivable | 208,600 | ||||
Estimate of gross contractual loans that will not be collected | $ 12,500 |
ACQUISITIONS AND DIVESTITURE _6
ACQUISITIONS AND DIVESTITURE - Components of Identifiable Intangible Assets - Flexiti (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Mar. 10, 2021 | |
Merchant relationships | |||
Business Acquisition [Line Items] | |||
Useful Life (in years) | 3 years 3 months 18 days | ||
Customer relationships | |||
Business Acquisition [Line Items] | |||
Useful Life (in years) | 2 years 4 months 24 days | ||
Flexiti | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 54,448 | $ 54,448 | $ 50,876 |
Flexiti | Developed technology | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 31,827 | ||
Useful Life (in years) | 5 years | ||
Flexiti | Merchant relationships | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 19,684 | ||
Useful Life (in years) | 5 years | ||
Flexiti | Customer relationships | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 2,937 | ||
Useful Life (in years) | 3 years |
ACQUISITIONS AND DIVESTITURE _7
ACQUISITIONS AND DIVESTITURE - Schedule of Assets Acquired and Liabilities Assumed - Ad Astra (Details) - USD ($) $ in Thousands | Jan. 03, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||||
Goodwill | $ 276,269 | $ 429,792 | $ 136,091 | |
Ad Astra | ||||
Assets | ||||
Cash and cash equivalents | $ 3,360 | |||
Accounts receivable | 465 | |||
Property and equipment | 358 | |||
Intangibles, net | 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 |
ACQUISITIONS AND DIVESTITURE _8
ACQUISITIONS AND DIVESTITURE - Schedule of Assets and Liabilities Divestiture - Legacy U.S. Direct Lending Business (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jul. 08, 2022 | Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Liabilities | ||||||
Total proceeds | $ 288,980 | $ 0 | $ 0 | |||
Total pretax gain on sale of business | $ 68,400 | $ 68,400 | 68,443 | $ 0 | $ 0 | |
Discontinued Operations, Disposed of by Sale | U.S. Legacy Direct Lending Business | ||||||
Assets | ||||||
Cash, cash equivalents and restricted cash | $ 21,292 | |||||
Loans receivable | 162,147 | |||||
Right of use asset | 39,326 | |||||
Goodwill | 91,131 | |||||
Other assets | 30,690 | |||||
Total assets | 344,586 | |||||
Liabilities | ||||||
Accounts payable and accrued liabilities | (8,947) | |||||
Right of use liability | (43,433) | |||||
Liability for losses on CSO lender-owned consumer loans | (5,628) | |||||
Other long term liabilities | (5,815) | |||||
Total liabilities | (63,823) | |||||
Net assets sold | 280,763 | |||||
Total proceeds | 349,207 | |||||
Total pretax gain on sale of business | $ 68,444 | $ 68,400 | $ 68,400 | $ 68,400 |
RELATED-PARTY TRANSACTIONS (Det
RELATED-PARTY TRANSACTIONS (Details) - Affiliated Entity - Ad Astra | 12 Months Ended |
Dec. 31, 2022 | |
Commissions | |
Related Party Transaction [Line Items] | |
Related party transaction, rate (as percent) | 30% |
Minimum | |
Related Party Transaction [Line Items] | |
Period of delinquency for referral to related party for collection | 91 days |
Maximum | |
Related Party Transaction [Line Items] | |
Period of delinquency for referral to related party for collection | 121 days |
PREPAID EXPENSES AND OTHER (Det
PREPAID EXPENSES AND OTHER (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Settlements and collateral due from third-party lenders | $ 0 | $ 5,465 |
Fees receivable from customers under CSO programs | 0 | 8,412 |
Prepaid expenses | 13,963 | 16,243 |
Other assets | 39,094 | 11,918 |
Total prepaid expenses and other | $ 53,057 | $ 42,038 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 96,050 | $ 165,325 | |
Accumulated depreciation and amortization | (64,093) | (110,690) | |
Property and equipment, net | 31,957 | 54,635 | |
Depreciation expense | 13,500 | 13,200 | $ 14,500 |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 52,031 | 122,049 | |
Furniture, fixtures and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 44,019 | $ 43,276 |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Trade accounts payable | $ 14,100 | $ 43,094 |
Money orders payable | 2,112 | 3,460 |
Accrued taxes, other than income taxes | 1,248 | 1,053 |
Accrued payroll and fringe benefits | 16,487 | 41,658 |
Other accrued liabilities | 39,880 | 32,169 |
Total accounts payable and accrued liabilities | $ 73,827 | $ 121,434 |
BENEFIT PLANS (Details)
BENEFIT PLANS (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) contract | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Deferred compensation plan, vesting period of employer contributions | 3 years | ||
Amount of deferred compensation plan liability | $ 5.1 | $ 5.1 | $ 4.7 |
Deferred Compensation Agreement, Period One | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Deferred Compensation Arrangement With Individual, Employer Contributions, Vested Payment Period | 5 years | ||
Deferred Compensation Agreement, Period Two | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Deferred Compensation Arrangement With Individual, Employer Contributions, Vested Payment Period | 10 years | ||
Registered Retirement Savings Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percent of employer's match (as percent) | 50% | ||
Defined Contribution Plan, Number of Plans | contract | 2 | ||
2021 Registered Retirement Savings Plan | Contact Center Employees | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percent of employer's match (as percent) | 50% | ||
2021 Registered Retirement Savings Plan | Corporate Employees | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percent of employer's match (as percent) | 100% | ||
401(k) Retirement Savings Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Contribution Plan, Number of Plans | contract | 3 | ||
Registered Retirement Savings Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percent of employees compensation (as percent) | 6% | ||
Contributions | $ 0.5 | 0.4 | 0.3 |
Registered Retirement Savings Plan | After One Year | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Deferred compensation plan, vesting period of employer contributions | 1 year | ||
Vesting rights (as percent) | 50% | ||
Registered Retirement Savings Plan | After Two Years | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Deferred compensation plan, vesting period of employer contributions | 2 years | ||
Vesting rights (as percent) | 100% | ||
401(k) Retirement Savings Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percent of employer's match (as percent) | 50% | ||
Percent of employees compensation (as percent) | 6% | ||
Vesting rights (as percent) | 33.33% | ||
Contributions | $ 3 | $ 1.7 | $ 1.7 |
Maximum employee contribution (as percent) | 90% | ||
Employment period | 3 years | ||
401(k) Retirement Savings Plan - Heights | Tier 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percent of employer's match (as percent) | 100% | ||
Percent of employees compensation (as percent) | 3% | ||
401(k) Retirement Savings Plan - Heights | Tier 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percent of employer's match (as percent) | 50% | ||
Percent of employees compensation (as percent) | 2% | ||
2021 Registered Retirement Savings Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Deferred compensation plan, vesting period of employer contributions | 1 year | ||
Vesting rights (as percent) | 100% | ||
2021 Registered Retirement Savings Plan | Contact Center Employees | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percent of employees compensation (as percent) | 6% | ||
2021 Registered Retirement Savings Plan | Corporate Employees | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percent of employees compensation (as percent) | 6% |
CREDIT SERVICE ORGANIZATION (De
CREDIT SERVICE ORGANIZATION (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Credit services organization, fees receivable | $ 5.2 | |
Guarantor obligations, maximum exposure, undiscounted | 38.4 | |
Liability for losses on lender-owned consumer loans | 6.9 | |
Amounts placed in collateral accounts | $ 5.5 | |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
CSO program loan terms | 6 months |
RESTRUCTURING AND STORE CLOSU_3
RESTRUCTURING AND STORE CLOSURES - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 USD ($) | Sep. 30, 2021 store | Jun. 30, 2021 store | Dec. 31, 2022 USD ($) contract store | Dec. 31, 2021 USD ($) store | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ | $ 16,038 | $ 16,000 | $ 12,717 | ||
Workforce reduction, number of employees | contract | 150 | ||||
Employee Termination Benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ | 7,867 | $ 7,900 | |||
Lease Exit Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ | $ 8,171 | $ 8,200 | |||
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 | ||||
UNITED STATES AND CANADA | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of stores closed | 89 |
RESTRUCTURING AND STORE CLOSU_4
RESTRUCTURING AND STORE CLOSURES - Restructuring Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 16,038 | $ 16,000 | $ 12,717 |
Salaries and Benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 6,601 | ||
Direct Operations | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 1,266 | $ 8,700 | |
Other Operating Expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 8,171 | ||
Employee Termination Benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 7,867 | 7,900 | |
Employee Termination Benefits | Salaries and Benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 6,601 | ||
Employee Termination Benefits | Direct Operations | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 1,266 | ||
Employee Termination Benefits | Other Operating Expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | ||
Lease Exit Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 8,171 | $ 8,200 | |
Lease Exit Costs | Salaries and Benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | ||
Lease Exit Costs | Direct Operations | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | ||
Lease Exit Costs | Other Operating Expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 8,171 |
RESTRUCTURING AND STORE CLOSU_5
RESTRUCTURING AND STORE CLOSURES - Accrued Restructuring Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Reserve [Roll Forward] | |||
Accrued restructuring costs, beginning balance | $ 0 | ||
Restructuring costs incurred during the year ended December 31, 2022 | 16,038 | $ 16,000 | $ 12,717 |
Amount paid during the year ended December 31, 2022 | 11,292 | ||
Accrued restructuring costs, ending balance | $ 4,746 | $ 4,746 |
RESTRUCTURING AND STORE CLOSU_6
RESTRUCTURING AND STORE CLOSURES - Store Closures (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Store closure costs | |||
Total store closure costs | $ 16,038 | $ 16,000 | $ 12,717 |
Severance and employee costs | 3,943 | ||
Lease termination costs | 1,710 | ||
Net accelerated depreciation and write-off of ROU assets and lease liabilities | 7,064 | ||
Corporate, district and other expenses | |||
Store closure costs | |||
Total store closure costs | 3,900 | ||
Direct Operations | |||
Store closure costs | |||
Total store closure costs | $ 1,266 | $ 8,700 |
DISCONTINUED OPERATIONS - Sched
DISCONTINUED OPERATIONS - Schedules of Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating expense (income) | |||
Pre-tax income from operations of discontinued operations | $ 0 | $ 0 | $ 1,714 |
Income tax expense related to disposition | 0 | 0 | 429 |
Net income from discontinued operations | 0 | 0 | 1,285 |
Cash Flow Disclosures | |||
Net cash provided by discontinued operating activities | $ 0 | $ 0 | 1,714 |
U.K. Segment | Discontinued Operations, Disposed of by Means Other than Sale | |||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||
Revenue | 0 | ||
Provision for losses | 0 | ||
Net revenue | 0 | ||
Cost of providing services | |||
Advertising | 0 | ||
Non-advertising costs of providing services | 0 | ||
Total cost of providing services | 0 | ||
Gross margin | 0 | ||
Operating expense (income) | |||
Corporate, district and other expenses | 0 | ||
Interest income | 0 | ||
Gain on disposition | (1,714) | ||
Total operating income | (1,714) | ||
Pre-tax income from operations of discontinued operations | 1,714 | ||
Income tax expense related to disposition | 429 | ||
Net income from discontinued operations | 1,285 | ||
Cash Flow Disclosures | |||
Net cash provided by discontinued operating activities | 1,714 | ||
Net cash used in discontinued investing activities | 0 | ||
Net cash used in discontinued financing activities | $ 0 |
SHARE REPURCHASE PROGRAM - Narr
SHARE REPURCHASE PROGRAM - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Nov. 30, 2021 | Dec. 31, 2022 | Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Feb. 28, 2022 | May 31, 2021 | Feb. 29, 2020 | |
Equity, Class of Treasury Stock [Line Items] | ||||||||
Class A common stock, par value (in usd per share) | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Repurchase Program, 2022 | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Total authorized repurchase amount for the period presented | $ 25,000,000 | |||||||
Repurchase Program, 2021 | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Total authorized repurchase amount for the period presented | $ 50,000,000 | $ 50,000,000 | $ 50,000,000 | |||||
Total number of shares repurchased (in shares) | 824,477 | 2,218,333 | ||||||
Repurchase of common stock from a related party (in usd per share) | $ 15.20 | $ 18.10 | $ 16.86 | |||||
Share Repurchase Agreement with Faulkner 2017 Dynasty Trust | Affiliated Entity | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Class A common stock, par value (in usd per share) | $ 0.001 | |||||||
Total number of shares repurchased (in shares) | 500,000 | 500,000 | ||||||
Repurchase of common stock from a related party (in usd per share) | $ 18.10 | |||||||
Repurchase Program, 2020 | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Total authorized repurchase amount for the period presented | $ 25,000,000 |
SHARE REPURCHASE PROGRAM - Sche
SHARE REPURCHASE PROGRAM - Schedule of Share Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2022 | Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | [1] | Dec. 31, 2020 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Total value of shares repurchased | $ 12,530 | $ 46,450 | $ 5,509 | |||
Repurchase Program, 2021 | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Total number of shares repurchased (in shares) | 824,477 | 2,218,333 | ||||
Repurchase of common stock from a related party (in usd per share) | $ 15.20 | $ 18.10 | $ 16.86 | |||
Total value of shares repurchased | $ 12,530 | $ 37,400 | ||||
[1] (2) Includes the repurchase of 500,000 shares of common stock from a related party for $18.10 per share. See Note 23, "Share Repurchase Program" for additional information. |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Revolving Credit Facility - CURO Canada Revolving Credit Facility - CAD ($) $ in Millions | Jan. 06, 2023 | Dec. 31, 2022 | Dec. 21, 2022 | Dec. 20, 2022 |
Subsequent Event [Line Items] | ||||
Line of credit facility, maximum borrowing capacity, cancelled | $ 10 | |||
Line of Credit | ||||
Subsequent Event [Line Items] | ||||
Line of credit facility, maximum borrowing capacity, cancelled | $ 5 | $ 5 | $ 10 | |
Subsequent Event | Line of Credit | ||||
Subsequent Event [Line Items] | ||||
Line of credit facility, maximum borrowing capacity, cancelled | $ 5 |