Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 28, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
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, $0.001 par value per share | |
Trading Symbol | CURO | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 41,249,956 | |
Entity Central Index Key | 0001711291 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 112,531 | $ 73,932 |
Restricted cash (includes restricted cash of consolidated VIEs of $75,298 and $52,277 as of June 30, 2023 and December 31, 2022, respectively) | 109,484 | 91,745 |
Gross loans receivable (includes loans of consolidated VIEs of $2,049,735 and $1,964,275 as of June 30, 2023 and December 31, 2022, respectively) | 2,139,865 | 2,087,833 |
Less: Allowance for credit losses (includes allowance for credit losses of consolidated VIEs of $257,506 and $108,451 as of June 30, 2023 and December 31, 2022, respectively) | (272,615) | (122,028) |
Loans receivable, net | 1,867,250 | 1,965,805 |
Income taxes receivable | 20,854 | 21,918 |
Prepaid expenses and other (includes prepaid expenses and other of consolidated VIEs of $15,702 and $12,908 as of June 30, 2023 and December 31, 2022, respectively) | 44,518 | 53,057 |
Property and equipment, net | 28,418 | 31,957 |
Investment in Katapult | 18,368 | 23,915 |
Right of use asset - operating leases | 56,021 | 61,197 |
Deferred tax assets (includes deferred tax assets of consolidated VIEs of $22,082 and $17,027 as of June 30, 2023 and December 31, 2022, respectively) | 54,102 | 49,893 |
Goodwill | 277,069 | 276,269 |
Intangibles, net | 133,947 | 123,677 |
Other assets | 22,275 | 15,828 |
Total Assets | 2,744,837 | 2,789,193 |
Liabilities | ||
Accounts payable and accrued liabilities (includes accounts payable and accrued liabilities of consolidated VIEs of $11,338 and $13,571 as of June 30, 2023 and December 31, 2022, respectively) | 78,343 | 73,827 |
Deferred revenue (includes deferred revenue of consolidated VIEs of $28 and $31 as of June 30, 2023 and December 31, 2022, respectively) | 36,793 | 32,259 |
Lease liability - operating leases | 56,585 | 62,847 |
Contingent consideration related to acquisition | 18,499 | 16,884 |
Income taxes payable | 788 | 0 |
Accrued interest (includes accrued interest of consolidated VIEs of $7,974 and $7,023 as of June 30, 2023 and December 31, 2022, respectively) | 39,306 | 38,460 |
Debt (includes debt and issuance costs of consolidated VIEs of $1,663,513 and $23,058 as of June 30, 2023 and $1,609,427 and $20,047 as of December 31, 2022, respectively) | 2,772,872 | 2,607,314 |
Other long-term liabilities | 10,016 | 11,736 |
Deferred tax liabilities | 8 | 0 |
Total Liabilities | 3,013,210 | 2,843,327 |
Commitments and contingencies (Note 7) | ||
Stockholders' (Deficit) 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; 50,840,136 and 50,216,165 shares issued; and 41,142,023 and 40,518,052 shares outstanding at the respective period ends | 23 | 23 |
Treasury stock, at cost - 9,698,113 shares | (136,832) | (136,832) |
Paid-in capital | 127,939 | 124,483 |
(Accumulated deficit)/retained earnings | (227,900) | 4,268 |
Accumulated other comprehensive loss | (31,603) | (46,076) |
Total Stockholders' Deficit | (268,373) | (54,134) |
Total Liabilities and Stockholders' (Deficit) Equity | $ 2,744,837 | $ 2,789,193 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Restricted cash | $ 109,484 | $ 91,745 |
Gross loans receivable | 2,139,865 | 2,087,833 |
Allowance for credit losses | 272,615 | 122,028 |
Prepaid expenses and other | 44,518 | 53,057 |
Deferred tax assets | 54,102 | 49,893 |
Accounts payable and accrued liabilities | 78,343 | 73,827 |
Deferred revenue | $ 36,793 | $ 32,259 |
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 |
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 225,000,000 | 225,000,000 |
Common stock, issued (in shares) | 50,840,136 | 50,216,165 |
Common stock, outstanding (in shares) | 41,142,023 | 40,518,052 |
Treasury stock (in shares) | 9,698,113 | |
Variable Interest Entity | ||
Restricted cash | $ 75,298 | $ 52,277 |
Gross loans receivable | 2,049,735 | 1,964,275 |
Allowance for credit losses | 257,506 | 108,451 |
Prepaid expenses and other | 15,702 | 12,908 |
Deferred tax assets | 22,082 | 17,027 |
Accounts payable and accrued liabilities | 11,338 | 13,571 |
Deferred revenue | 28 | 31 |
Accrued interest | 7,974 | 7,023 |
Debt | 1,663,513 | 1,609,427 |
Capitalized financing costs | $ 23,058 | $ 20,047 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue | ||||
Total revenue | $ 209,243 | $ 304,404 | $ 418,716 | $ 594,600 |
Provision for losses | 79,598 | 129,546 | 142,530 | 227,077 |
Net revenue | 129,645 | 174,858 | 276,186 | 367,523 |
Operating Expenses | ||||
Salaries and benefits | 61,346 | 82,427 | 126,151 | 162,156 |
Occupancy | 11,267 | 17,507 | 22,939 | 34,544 |
Advertising | 2,131 | 12,707 | 4,306 | 23,207 |
Direct operations | 15,466 | 20,293 | 28,558 | 40,567 |
Depreciation and amortization | 9,141 | 8,672 | 18,162 | 18,486 |
Other operating expense | 8,796 | 18,787 | 26,229 | 35,163 |
Total operating expenses | 108,147 | 160,393 | 226,345 | 314,123 |
Other expense (income) | ||||
Interest expense | 66,101 | 42,193 | 125,044 | 80,534 |
Loss (gain) from equity method investment | 2,134 | 1,328 | 5,547 | (256) |
Extinguishment or modification of debt costs | 8,864 | 0 | 8,864 | 0 |
Loss (gain) from equity method investment | 0 | 4,014 | 2,728 | 3,750 |
Gain on sale of business | 0 | 0 | 2,027 | 0 |
Miscellaneous expenses | 1,435 | 0 | 1,435 | 0 |
Total other expense | 78,534 | 47,535 | 145,645 | 84,028 |
Loss before income taxes | (57,036) | (33,070) | (95,804) | (30,628) |
Provision (benefit) for income taxes | 2,291 | (6,990) | 22,994 | (5,884) |
Net loss | $ (59,327) | $ (26,080) | $ (118,798) | $ (24,744) |
Basic loss per share: | ||||
Basic loss per share (in usd per share) | $ (1.45) | $ (0.65) | $ (2.91) | $ (0.61) |
Diluted loss per share (in usd per share) | $ (1.45) | $ (0.65) | $ (2.91) | $ (0.61) |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 41,002 | 40,376 | 40,893 | 40,372 |
Diluted (in shares) | 41,002 | 40,376 | 40,893 | 40,372 |
Interest and fees revenue | ||||
Revenue | ||||
Total revenue | $ 178,986 | $ 278,331 | $ 358,423 | $ 543,287 |
Insurance and other income | ||||
Revenue | ||||
Total revenue | $ 30,257 | $ 26,073 | $ 60,293 | $ 51,313 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (59,327) | $ (26,080) | $ (118,798) | $ (24,744) |
Other comprehensive income (loss), net of tax: | ||||
Change in derivative instruments designated as cash flow hedges, net of tax | 8,836 | 0 | 6,086 | 0 |
Foreign currency translation adjustment, net of tax | 8,357 | (10,520) | 8,387 | (3,887) |
Other comprehensive income (loss), net of tax | 17,193 | (10,520) | 14,473 | (3,887) |
Comprehensive loss | $ (42,134) | $ (36,600) | $ (104,325) | $ (28,631) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN (DEFICIT) EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Treasury Stock, at cost | Paid-in capital | Retained Earnings (Deficit) | Retained Earnings (Deficit) Cumulative Effect, Period of Adoption, Adjustment | AOCI |
Balance, beginning period (in shares) at Dec. 31, 2021 | 40,810,444 | |||||||
Balance, beginning period at Dec. 31, 2021 | $ 160,330 | $ 23 | $ (124,302) | $ 113,520 | $ 203,467 | $ (32,378) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 1,336 | 1,336 | ||||||
Other comprehensive income (loss), net of tax | 6,633 | 6,633 | ||||||
Dividends | (4,791) | (4,791) | ||||||
Share-based compensation expense | 4,093 | 4,093 | ||||||
Repurchase of common stock (in shares) | (824,477) | |||||||
Repurchase of common stock | (12,530) | (12,530) | ||||||
Net settlement of share-based awards (in shares) | 362,815 | |||||||
Net settlement of share-based awards | (2,284) | (2,284) | ||||||
Balance, ending period (in shares) at Mar. 31, 2022 | 40,348,782 | |||||||
Balance, ending period at Mar. 31, 2022 | 152,787 | $ 23 | (136,832) | 115,329 | 200,012 | (25,745) | ||
Balance, beginning period (in shares) at Dec. 31, 2021 | 40,810,444 | |||||||
Balance, beginning period at Dec. 31, 2021 | 160,330 | $ 23 | (124,302) | 113,520 | 203,467 | (32,378) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (24,744) | |||||||
Foreign currency translation adjustment, net of tax | (3,887) | |||||||
Other comprehensive income (loss), net of tax | (3,887) | |||||||
Balance, ending period (in shares) at Jun. 30, 2022 | 40,457,751 | |||||||
Balance, ending period at Jun. 30, 2022 | 115,580 | $ 23 | (136,832) | 119,156 | 169,498 | (36,265) | ||
Balance, beginning period (in shares) at Mar. 31, 2022 | 40,348,782 | |||||||
Balance, beginning period at Mar. 31, 2022 | 152,787 | $ 23 | (136,832) | 115,329 | 200,012 | (25,745) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (26,080) | (26,080) | ||||||
Foreign currency translation adjustment, net of tax | (10,520) | |||||||
Other comprehensive income (loss), net of tax | (10,520) | (10,520) | ||||||
Dividends | (4,434) | (4,434) | ||||||
Share-based compensation expense | 4,415 | 4,415 | ||||||
Common stock issued for RSU's vesting, net of shares withheld and withholding paid for employee taxes (in shares) | 108,969 | |||||||
Common stock issued for RSUs vesting, net of shares withheld and withholding paid for employee taxes | (588) | (588) | ||||||
Balance, ending period (in shares) at Jun. 30, 2022 | 40,457,751 | |||||||
Balance, ending period at Jun. 30, 2022 | 115,580 | $ 23 | (136,832) | 119,156 | 169,498 | (36,265) | ||
Balance, beginning period (in shares) at Dec. 31, 2022 | 40,518,052 | |||||||
Balance, beginning period at Dec. 31, 2022 | (54,134) | $ (113,019) | $ 23 | (136,832) | 124,483 | 4,268 | $ (113,019) | (46,076) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (59,471) | (59,471) | ||||||
Other comprehensive income (loss), net of tax | (2,720) | (2,720) | ||||||
Dividends | (326) | (326) | ||||||
Share-based compensation expense | 1,636 | 1,636 | ||||||
Net settlement of share-based awards (in shares) | 441,995 | |||||||
Net settlement of share-based awards | (782) | (782) | ||||||
Balance, ending period (in shares) at Mar. 31, 2023 | 40,960,047 | |||||||
Balance, ending period at Mar. 31, 2023 | $ (228,816) | $ 23 | (136,832) | 125,337 | (168,548) | (48,796) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 [Member] | |||||||
Balance, beginning period (in shares) at Dec. 31, 2022 | 40,518,052 | |||||||
Balance, beginning period at Dec. 31, 2022 | $ (54,134) | $ (113,019) | $ 23 | (136,832) | 124,483 | 4,268 | $ (113,019) | (46,076) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (118,798) | |||||||
Foreign currency translation adjustment, net of tax | 8,387 | |||||||
Other comprehensive income (loss), net of tax | 14,473 | |||||||
Balance, ending period (in shares) at Jun. 30, 2023 | 41,142,023 | |||||||
Balance, ending period at Jun. 30, 2023 | (268,373) | $ 23 | (136,832) | 127,939 | (227,900) | (31,603) | ||
Balance, beginning period (in shares) at Mar. 31, 2023 | 40,960,047 | |||||||
Balance, beginning period at Mar. 31, 2023 | (228,816) | $ 23 | (136,832) | 125,337 | (168,548) | (48,796) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (59,327) | (59,327) | ||||||
Foreign currency translation adjustment, net of tax | 8,357 | |||||||
Other comprehensive income (loss), net of tax | 17,193 | 17,193 | ||||||
Dividends | (25) | (25) | ||||||
Share-based compensation expense | 2,618 | 2,618 | ||||||
Net settlement of share-based awards (in shares) | 181,976 | |||||||
Net settlement of share-based awards | (16) | (16) | ||||||
Balance, ending period (in shares) at Jun. 30, 2023 | 41,142,023 | |||||||
Balance, ending period at Jun. 30, 2023 | $ (268,373) | $ 23 | $ (136,832) | $ 127,939 | $ (227,900) | $ (31,603) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (118,798) | $ (24,744) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 18,162 | 18,487 |
Provision for losses | 142,530 | 227,077 |
Amortization of debt issuance costs and bond discount | 8,799 | 4,302 |
Extinguishment or modification of debt costs | 8,864 | 0 |
Deferred income tax benefit | 17,489 | (679) |
(Gain) loss on disposal of property and equipment | (20) | 37 |
Loss (gain) from equity method investment | 5,547 | (256) |
Change in fair value of contingent consideration | 2,728 | 3,750 |
Share-based compensation | 4,254 | 8,509 |
Changes in operating assets and liabilities: | ||
Accrued interest on loans receivable | (35,060) | 10,677 |
Prepaid expenses and other assets | 8,004 | (16) |
Accounts payable and accrued liabilities | (5,835) | (36,460) |
Deferred revenue | 4,534 | 6,105 |
Income taxes payable | 778 | (979) |
Income taxes receivable | 1,064 | (14,739) |
Accrued interest | 846 | 730 |
Other long-term liabilities | (2,081) | (592) |
Net Cash Provided by (Used in) Operating Activities, Total | 61,805 | 201,209 |
Cash flows from investing activities: | ||
Purchase of property, equipment and software | (21,840) | (22,249) |
Loans receivable originated or acquired | (810,037) | (1,076,961) |
Loans receivable repaid | 737,285 | 613,718 |
Divestiture of Legacy U.S. Direct Lending Business, net of cash provided | (2,027) | 0 |
Net Cash Provided by (Used in) Investing Activities, Total | (96,619) | (485,492) |
Cash flows from financing activities | ||
Debt issuance costs paid | (27,722) | (587) |
Payments to net share settle equity awards | (798) | (2,872) |
Repurchase of common stock | 0 | (13,531) |
Dividends paid to stockholders | (351) | (9,226) |
Net cash provided by financing activities | 88,462 | 273,923 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 2,690 | 1,299 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 56,338 | (9,061) |
Cash, cash equivalents and restricted cash at beginning of period | 165,677 | 162,075 |
Cash, cash equivalents and restricted cash at end of period | 222,015 | 153,014 |
Supplemental Cash Flow Elements [Abstract] | ||
Cash and cash equivalents | 112,531 | 37,394 |
Restricted cash | 109,484 | 97,465 |
Total cash, cash equivalents and restricted cash used in the Statement of Cash Flows | 222,015 | 153,014 |
SPV and SPE Facilities | ||
Cash flows from financing activities | ||
Proceeds from credit facilities | 217,796 | 640,931 |
Payments on credit facilities | (215,463) | (340,903) |
Senior Revolver | ||
Cash flows from financing activities | ||
Proceeds from credit facilities | 155,000 | 69,304 |
Payments on credit facilities | $ (40,000) | $ (69,193) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Cash and cash equivalents | $ 112,531 | $ 37,394 |
Restricted cash | 109,484 | 97,465 |
Cash classified as held for sale | 0 | 18,155 |
Total cash, cash equivalents and restricted cash used in the Statement of Cash Flows | 222,015 | 153,014 |
Cash and cash equivalents | 10,240 | |
Restricted cash | 7,915 | |
Variable Interest Entity | ||
Restricted cash | $ 75,298 | $ 54,728 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS | 6 Months Ended |
Jun. 30, 2023 | |
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 tech-enabled, omni-channel consumer finance company serving customers in the U.S. and Canada 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. Basis of Presentation The Company has prepared the accompanying unaudited Condensed Consolidated Financial Statements in accordance with U.S. GAAP and the accounting policies described in its 2022 Form 10-K. Interim results of operations are not necessarily indicative of results that might be expected for future interim periods or for the year ending December 31, 2023. While certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted, the Company believes that the disclosures are adequate to enable a reasonable understanding of the information presented. Additionally, the Company qualifies as an SRC, which allows registrants to report information under scaled disclosure requirements. SRC status is determined on an annual basis as of June 30th. The Company met the definition of an SRC as of June 30, 2023 and will evaluate its status as of June 30, 2024. The unaudited Condensed Consolidated Financial Statements and the accompanying notes reflect adjustments of a normal and recurring nature, which are, in the opinion of management, necessary to present fairly the Company's results of operations, financial position and cash flows for the periods presented. Revised Presentation Beginning January 1, 2023, the Company began reporting "Insurance and other income" in place of the previously reported "Insurance premiums and commissions" and "Other revenue" line items in the unaudited Condensed Consolidated Statements of Operations. Prior period amounts have been reclassified to conform with current period presentation. Beginning September 30, 2022, the Company began reporting "Loss (gain) on change in fair value of contingent consideration" separately on the unaudited Condensed Consolidated Statements of Operations compared to historical presentation within Other operating expense. Prior period amounts have been reclassified to conform with current period presentation. Beginning January 1, 2023, the Company renamed the previously reported Allowance for loan losses to Allowance for credit losses on the unaudited Condensed Consolidated Statements of Operations. Prior period amounts have been reclassified to conform with current period presentation. Principles of Consolidation The unaudited Condensed Consolidated Financial Statements reflect the accounts of CURO and its direct and indirect subsidiaries, including First Heritage, which we acquired on July 13, 2022. Refer to Note 13, "Acquisitions and Divestiture" for further disclosures related to this acquisitions. Intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of the unaudited Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. Some estimates may also affect the reported amounts of revenues and expenses during the periods presented. Significant estimates that the Company made in the accompanying unaudited Condensed Consolidated Financial Statements include ACL, certain assumptions related to equity investments, goodwill and intangibles, accruals related to self-insurance, estimated tax liabilities and the accounting for acquisitions. Actual results may differ from those estimates. Allowance for Credit Losses The FASB has changed the impairment model for estimating credit losses on financial assets. The previous incurred loss impairment model required the recognition of credit losses when it was probable that a loss had been incurred. The incurred loss model was replaced by the CECL model, which requires entities to estimate the lifetime expected credit loss on financial instruments and to record an allowance to offset the amortized cost basis of the financial asset. The CECL model requires earlier recognition of credit losses as compared to the incurred loss approach. The Company adopted this standard effective January 1, 2023. The initial impact of adoption was a $100.0 million increase to accumulated deficit ($135.2 million increase to the ACL, net of $35.2 million in taxes). For the three months ended March 31, 2023, we recorded a valuation allowance against the U.S. DTAs. See Note 8 - Income Taxes for further information. As a result, the Company decreased the tax impact to Accumulated deficit by $13.0 million as a result of the valuation allowance for the three months ended March 31, 2023. As of adoption on January 1, 2023, the impact of CECL was recorded as a $113.0 million increase to Accumulated deficit ($135.2 million increase to the ACL, net of $22.2 million in taxes). The ACL on gross loans receivables reduces the outstanding gross loans receivables balance in the unaudited Condensed Consolidated Balance Sheets. After adoption, all changes in the ACL, net of charge-offs and recoveries, are recorded as “Provision for losses” in the unaudited Condensed Consolidated Statements of Operations. The ACL is based on an analysis of historical loss, charge-off rates and recoveries. The Company also considers delinquency trends, impact of new loan products, changes to underwriting criteria or lending policies, changes in jurisdictional regulations or laws, recent credit trends and reasonable and supportable economic forecasts, which cover the life of the loan. The Company will also adjust for quantitative and qualitative factors that are not fully reflected in the historical data. 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. The Company charges credit losses, including accrued interest, against the allowance when the account reaches 180 days contractually delinquent, subject to certain exceptions. Any recoveries on loans previously charged to the ACL are credited to the ACL when collected. The Company selected a static pool Probability of Default (“PD”) / Loss Given Default (“LGD”) / Exposure at Default ("EAD") model to estimate its base allowance for credit losses, in which the estimated loss is equal to the product of PD, LGD and EAD. Historical static pools of net loans receivables are tracked over the term of the pools to identify the probability of loss (PD) and the average size of losses, net of recoveries (LGD and EAD). As loans receivable are originated, provisions for credit losses are recorded in amounts sufficient to maintain an ACL at an adequate level to provide for estimated losses over the contractual term of the loan receivables. Subsequent changes to the contractual terms resulting from re-underwriting are not included in the loan receivable’s expected life. The Company uses its historical loss experience to forecast expected credit losses. Historical information about losses generally provides a basis for the estimate of expected credit losses. The Company also considers the need to adjust historical information to reflect the extent to which current conditions differ from the conditions that existed for the period over which historical information was evaluated. These adjustments to historical loss information may be qualitative or quantitative in nature. Reasonable and supportable macroeconomic forecasts are required for the Company’s ACL model. The projected change in creditworthiness is modeled using Congressional Budget Office data such as unemployment rate and personal income. The Company adjusts the historical loss experience by relevant qualitative factors for these expectations. Canada Loss Recognition Effective January 1, 2023, the Company modified the timeframe over which it charges-off loans within the Direct Lending brands in Canada and made related refinements to its loss provisioning methodology. Prior to January 1, 2023, the Company deemed the Direct Lending brands in Canada uncollectible and charged-off on day 91 past-due. As part of our policy alignment within the Direct Lending operating segment, the Company revised its estimates and now considers a loan issued by the Direct Lending brands in Canada loans uncollectible when they have been contractually past-due for more than 180 consecutive days. Consequently, such past-due loans and related accrued interest now remain in loans receivable for 180 days before being charged-off against the ACL. All recoveries on charged-off loans are credited to the ACL when received. The Company evaluates the adequacy of the ACL compared to the related gross loans receivable balances that include accrued interest. The aforementioned change was treated as a change in accounting estimate and applied prospectively effective January 1, 2023. The change affects comparability to prior periods as follows: • Gross loans receivable: balances as of June 30, 2023 include $20.9 million of the Direct Lending brands in Canada loans that are between 91 and 180 days past-due with related accrued interest, while such balances for prior periods do not include any loans that are between 91 and 180 days past-due. • Revenues: for the three and six month periods ended June 30, 2023, revenues include accrued interest on the Direct Lending brands in Canada loans between 91 and 180 days past-due of $0.3 million and $2.5 million respectively, while revenues in prior periods do not include any loans that are between 91 and 180 days past-due. • Provision for Losses: effective January 1, 2023, past-due, unpaid balances plus related accrued interest on the Direct Lending brands in Canada loans charge off on day 181. Provision expense is affected by NCOs plus changes to the required ACL. Because NCOs now include unpaid principal and up to 180 days of related accrued interest, as compared to prior periods, NCO amounts and rates are higher and the required ACL as a percentage of gross loans receivable is higher. The Company recognized $26.9 million and $36.7 million in charge offs related to the Direct Lending brands in Canada loans for the three and six months ended June 30, 2023 and, absent the policy change, would have recognized $28.2 million and $57.5 million for the three and six months ended June 30, 2023 in gross charge offs on those loans. Recently Issued Accounting Pronouncements Recently 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. As a result of the adoption of CECL on January 1, 2023, through a modified-retrospective approach, the Company recorded an increase to the ACL of $135.2 million and a corresponding one-time, cumulative reduction to retained earnings of $113.0 million (net of $22.2 million in taxes) in the unaudited Condensed Consolidated Balance Sheet as of January 1, 2023. The Company’s ACL increased from 5.8% to 12.6% as a percentage of the amortized cost basis on January 1, 2023. In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures , which removes the accounting guidance for troubled debt restructurings and requires entities to evaluate whether a modification provided to a customer results in a new loan or continuation of an existing loan. The amendments enhance existing disclosures and require new disclosures for receivables when there has been a modification in contractual cash flows due to a customer experiencing financial difficulties. Additionally, the amendments require disclosure of gross charge-off information by year of origination in the vintage disclosures. The Company adopted this guidance as of January 1, 2023 using the modified retrospective method. Adoption of this standard did not have a material impact on our unaudited Condensed Consolidated Financial Statements. As result of the adoption of ASU 2016-13, several of our significant accounting policies have changed to reflect the requirements of the new standard. See above for these updated significant accounting policies as of January 1, 2023. 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 . The adoption of ASU 2021-08 at January 1, 2023 did not have a material effect on the Company's unaudited Condensed Consolidated Financial Statements. |
LOANS RECEIVABLE AND REVENUE
LOANS RECEIVABLE AND REVENUE | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
LOANS RECEIVABLE AND REVENUE | NOTE 2 – LOANS RECEIVABLE AND REVENUE Effective with 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 presents activity from these loans in the below tables, based on historical practice and for comparability purposes. The following table summarizes revenue by product (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Revolving LOC $ 86,703 $ 96,583 $ 170,928 $ 187,606 Installment 92,283 181,748 187,495 355,681 Total interest and fees revenue 178,986 278,331 358,423 543,287 Insurance and other income 30,257 26,073 60,293 51,313 Total revenue $ 209,243 $ 304,404 $ 418,716 $ 594,600 June 30, 2023 Revolving LOC Installment Total Current loans receivable $ 1,256,338 $ 634,077 $ 1,890,415 1-30 days past-due 51,799 59,558 111,357 Delinquent: 31-60 days past-due 23,159 17,799 40,958 61-90 days past-due 15,969 12,464 28,433 91 + days past-due 37,887 30,815 68,702 Total delinquent loans receivable 77,015 61,078 138,093 Total loans receivable 1,385,152 754,713 2,139,865 Less: allowance for credit losses (187,973) (84,642) (272,615) Loans receivable, net $ 1,197,179 $ 670,071 $ 1,867,250 December 31, 2022 Revolving LOC Installment Total Current loans receivable $ 1,194,554 $ 649,262 $ 1,843,816 1-30 days past-due 46,956 76,709 123,665 Delinquent: 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 Delinquent loans receivable 43,005 77,347 120,352 Total loans receivable 1,284,515 803,318 2,087,833 Less: allowance for credit losses (78,815) (43,213) (122,028) Loans receivable, net $ 1,205,700 $ 760,105 $ 1,965,805 |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | NOTE 3 – VARIABLE INTEREST ENTITIES As of June 30, 2023, the Company had six credit facilities, whereby certain loans receivable were sold to 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 unaudited Condensed Consolidated Financial Statements. The assets of a VIE can be used only to settle liabilities of that VIE. Creditors (or beneficial interest holders) of the VIEs do not have recourse to the Company's general credit. The carrying amounts of consolidated VIEs' assets and liabilities were as follows (in thousands): June 30, December 31, Assets Restricted cash $ 75,298 $ 52,277 Loans receivable, net 1,792,229 1,855,824 Prepaid expenses and other 15,702 12,908 Deferred tax assets 22,082 17,027 Total Assets $ 1,905,311 $ 1,938,036 Liabilities Accounts payable and accrued liabilities $ 11,338 $ 13,571 Deferred revenue 28 31 Accrued interest 7,974 7,023 Income Taxes Payable 9,828 7,850 Debt 1,640,455 1,589,380 Total Liabilities $ 1,669,623 $ 1,617,855 |
GOODWILL
GOODWILL | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLES | NOTE 4 – GOODWILL Goodwill The change in the carrying amount of goodwill by reporting unit for the six months ended June 30, 2023 was as follows (in thousands): Direct Lending Canada POS Lending Total Goodwill at December 31, 2022 $ 276,269 $ — $ 276,269 Foreign currency translation 800 — 800 Goodwill at June 30, 2023 $ 277,069 $ — $ 277,069 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 potential indicators include, among various factors, declining sales, earnings or cash flows or the development of a material adverse change in business climate. The Company assesses goodwill for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment, referred to as a reporting unit. See Note 1, "Summary of Significant Accounting Policies and Nature of Operations" of the 2022 Form 10-K for additional information on the Company's policy for assessing goodwill for possible impairment. During the fourth quarter of 2022, the Company performed a quantitative assessment for each of its reporting units. Management utilized the income and the guideline public company approaches, in equal weightings, in determining a fair value for each of the three reporting units for purposes of testing goodwill. The income approach estimates fair value using the present value of future cash flows, whereas the guideline public company approach estimates fair value using the fair value of publicly traded businesses in a similar line of business. As a result, the Company recognized non-cash pre-tax impairment charges of $107.8 million on the Legacy 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 values of goodwill. Management concluded that the estimated fair value of the Canada Direct Lending reporting unit, now included in the Direct Lending reporting unit, was greater than its carrying value, as of the annual assessment date; as such, no impairment charge was required. In the three months ended March 31, 2023, the Company combined the Legacy U.S. Direct Lending and Canada Direct Lending reporting units into a single Direct Lending reporting unit. Refer to Note 12, " Segment Reporting " for further information. In the second quarter of 2023, the Company performed an interim review of triggering events for the Direct Lending reporting unit, which would indicate whether a quantitative or qualitative assessment of goodwill impairment was necessary. As a result of the interim triggering event review, the Company concluded an additional assessment was not necessary. Heights Acquisition The Company completed the acquisition of Heights on December 27, 2021. Provisional goodwill was estimated at $253.9 million, based on the preliminary valuation. The Company recorded $11.8 million of net adjustments during fiscal year 2022, resulting in a goodwill balance of $265.7 million as of December 31, 2022, excluding the impairment charge on the Legacy U.S. Direct Lending reporting unit, now included in the Direct Lending reporting unit, recorded in the fourth quarter of 2022. See Note 13,"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 during the year ended 2022 which was recorded in "Gain on sale of business" in the unaudited Consolidated Statement of Operations. The Company reduced the gain by $2.0 million for the six months ended June 30, 2023, based on expected uncollectible amounts. There was no change to the gain during the three months ended June 30, 2023. As part of the sale, $91.1 million of goodwill was written off. See Note 13,"Acquisitions and Divestiture" for more information related to the divestiture. First Heritage Acquisition On July 13, 2022, the Company 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 total purchase price of $140.0 million in cash. Provisional goodwill was recorded at $75.4 million, excluding the impairment charge on the Legacy U.S. Direct Lending reporting unit, now included in the Direct Lending reporting unit, recorded in the fourth quarter 2022. No adjustments were recorded during the measurement period which resulted in a final goodwill balance of $75.4 million. See Note 13, "Acquisitions and Divestiture" for more information related to the business combination. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2023 | |
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 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 judgments about the assumptions market participants would use in pricing the asset or liability as a result of limited market data. The Company develops these inputs based on the best information available, including its own data. Financial Assets and Liabilities Carried at Fair Value The table below presents the assets and liabilities that were carried at fair value on the unaudited Condensed Consolidated Balance Sheets at June 30, 2023 (in thousands): Estimated Fair Value Carrying Value June 30, Level 1 Level 2 Level 3 Total Financial assets: Cash Surrender Value of Life Insurance $ 5,931 $ 5,931 $ — $ — $ 5,931 Derivative asset 10,930 — 10,930 — 10,930 Financial liabilities: Non-qualified deferred compensation plan $ 4,372 $ 4,372 $ — $ — $ 4,372 Contingent consideration related to acquisition 18,499 — 18,499 — 18,499 The table below presents the assets and liabilities that were carried at fair value on the unaudited Condensed 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 asset 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 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 unaudited Condensed Consolidated Balance Sheets. The non-qualified deferred compensation plan offsetting liability is included in Accounts payable and accrued liabilities in the Company’s unaudited Condensed Consolidated Balance Sheets. Derivative Asset The Company uses interest rate swaps to help 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. During the year ended December 31, 2022, Flexiti entered into interest rate swaps with a counterparty to protect against the interest rate risk on the Flexiti Securitization variable-rate borrowing facility. Flexiti is required to hedge the variable interest rate aspect of the Flexiti SPV under the facility's credit agreement. The derivative asset is included in Other assets in the Company’s unaudited Condensed Consolidated Balance Sheet. For additional information on the interest rate swaps, refer to 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 was 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 through December 31, 2022. The contingent consideration measured at fair value using unobservable inputs was initially recorded as $20.6 million as of March 31, 2021. The Company paid $1.0 million of the liability based on results through March 31, 2022. At December 31, 2022, the liability recorded was the expected payment based on the actual risk adjusted-revenue and origination targets achieved during the measurement period (Level 3), which ended on March 31, 2023. This liability was changed to a Level 2 estimated fair value at March 31, 2023, because the liability was based on achieved results and no longer includes a forecast component. The liability recorded was $18.5 million as of June 30, 2023. On July 20, 2023, the Company settled the liability. The liability is included in Contingent consideration related to acquisition in the Company’s unaudited Condensed Consolidated Balance Sheet. For additional information on Flexiti and the related contingent consideration, refer to Note 13, "Acquisitions and Divestiture." Financial Assets and Liabilities Not Carried at Fair Value The table below presents the assets and liabilities that were not carried at fair value on the unaudited Condensed Consolidated Balance Sheets at June 30, 2023 (in thousands): Estimated Fair Value Carrying Value June 30, Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 112,531 $ 112,531 $ — $ — $ 112,531 Restricted cash 109,484 109,484 — — 109,484 Loans receivable, net 1,867,250 — — 1,867,250 1,867,250 Investment in Katapult 18,368 19,396 — — 19,396 Financial liabilities: 1.0L 18.00% Senior Secured Term Loan $ 148,249 $ — $ — $ 148,249 $ 148,249 1.5L 7.50% Senior Secured Notes 671,496 — 257,568 — 257,568 2.0L 7.50% Senior Secured Notes 312,672 — 70,688 — 70,688 Heights SPV 380,439 — — 387,185 387,185 First Heritage SPV 155,926 — — 159,473 159,473 Flexiti SPV 389,725 — — 394,018 394,018 Flexiti Securitization 394,975 — — 398,743 398,743 Canada SPV 249,377 — — 251,884 251,884 Canada SPV II 70,013 — — 72,210 72,210 The table below presents the assets and liabilities that were not carried at fair value on the unaudited Condensed Consolidated Balance Sheets at December 31, 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 Senior Revolver 35,000 — — 35,000 35,000 Loans Receivable, Net Loans receivable are carried on the unaudited Condensed Consolidated Balance Sheets net of the ACL. 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 macroeconomic conditions, including unemployment rate and customer income. The carrying value of loans receivable approximates their fair value. Refer to Note 2, "Loans Receivable and Revenue" for additional information. 1.0L 18.00% Senior Secured Term Loans, 1.5L 7.50% Senior Secured Notes, 2.0L 7.50% Senior Secured Notes, Heights SPV, First Heritage SPV, Flexiti SPV, Flexiti Securitization, Canada SPV, Canada SPV II and Senior Revolver The fair value disclosures for the 1.5L 7.50% Senior Secured Notes and 2.0L 7.50% Senior Secured Notes as of June 30, 2023 and the 7.50% Senior Secured Notes as of December 31, 2022 were based on observable market trading data. The fair values of the 1.0L 18.00% Senior Secured Term Loans, Heights SPV, First Heritage SPV, Flexiti SPV, Flexiti Securitization, Canada SPV, Canada SPV II and Senior Revolver were based on the cash needed for their respective final settlements. Refer to Note 6 , " Debt " for additional information. Investment in Katapult The table below presents the Company's investment in Katapult (in thousands): Investment in Katapult Balance at December 31, 2021 $ 27,900 Equity method income - Q1 2022 1,584 Balance at March 31, 2022 29,484 Equity method loss - Q2 2022 (1,328) Balance at June 30, 2022 28,156 Equity method loss - Q3 2022 (2,309) Balance at September 30, 2022 25,847 Equity method loss - Q4 2022 (1,932) Balance at December 31, 2022 23,915 Equity method loss - Q1 2023 (3,413) Balance at March 31, 2023 20,502 Equity method loss - Q2 2023 (2,134) Balance at June 30, 2023 $ 18,368 The Company has an equity method investment in Katapult and records its share of earnings and losses on a one-quarter reporting lag. The Company recorded a loss of $2.1 million and $5.5 million for the three and six ended June 30, 2023 respectively, based on its share of Katapult’s earnings. The equity method investment is presented within "Investment in Katapult" on the unaudited Condensed Consolidated Balance Sheets. The Company owns 23.4% of Katapult outstanding common stock as of June 30, 2023. |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | NOTE 6 – DEBT The Company's debt instruments and balances outstanding as of June 30, 2023 and December 31, 2022, including maturity date, effective interest rate and borrowing capacity, subject to borrowing base limitations, were as follows (dollars in thousands): Effective interest rate Outstanding as of Maturity Date Borrowing Capacity June 30, 2023 December 31, 2022 Corporate Debt: 1.0L 18.00% Senior Secured Term Loan August 2, 2027 18.00 % $ 167,495 $ — 1.5L 7.50% Senior Secured Notes August 1, 2028 7.50 % 682,298 — 2.0L 7.50% Senior Secured Notes August 1, 2028 7.50 % 317,702 — 7.5% Senior Secured Notes August 1, 2028 7.50 % — 1,000,000 Total corporate debt 1,167,495 1,000,000 Funding Debt: Heights SPV July 15, 2025 1-Mo SOFR + 4.71% $425.0 million $ 387,185 $ 400,758 First Heritage SPV July 13, 2025 1-Mo SOFR + 4.25% $225.0 million 159,473 182,751 Flexiti SPV (1) September 29, 2025 Weighted average interest rate (2)(3) 8.41% C$535.0 million 394,018 343,565 Flexiti Securitization (1) (4) December 9, 2025 1-Mo CDOR + 3.59% (3) C$526.5 million 398,743 387,759 Canada SPV (1) August 2, 2026 3-Mo CDOR + 6.00% C$400.0 million 251,884 294,594 Canada SPV II November 12, 2025 3-Mo CDOR + 8.00% C$110.0 million 72,210 — Senior Revolver (5) N/A 1-Mo SOFR + 5.00% $40.0 million — 35,000 Total funding debt $ 1,663,513 $ 1,644,427 Less: debt issuance costs (58,136) (37,113) Total Debt $ 2,772,872 $ 2,607,314 (1) Capacity amounts are denominated in Canadian dollars, whereas outstanding balances as of June 30, 2023 and December 31, 2022 are denominated in U.S. dollars. The exchange rate applied at June 30, 2023 was 0.7573 and the exchange rate at December 31, 2022 was 0.7365. (2) The weighted average interest rate does not include the impact of the amortization of deferred loan origination costs or debt discounts. (3) 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. (4) The effective rate is 7.09%. (5) On May 15, 2023, the Company utilized the proceeds from the $150.0 million 1.0L 18.00% Senior Secured Term Loan to pay off the Senior Revolver. Corporate Debt 1.0 Lien 18.00% Senior Secured Term Loan On May 15, 2023, the Company entered into a new $150.0 million first lien term loan, which matures on August 2, 2027. Interest is payable quarterly, in arrears, on March 31, June 30, September 30, and December 31, The principal loan balance and any unpaid accrued interest are due to the lender on the maturity date. The 1.0L 18.00% Senior Secured Term Loan are senior secured obligations of the Company and rank senior in right of payment to all of its existing and future unsecured senior debt. The 1.0L 18.00% Senior Secured Term Loan accrues interest at a rate of 18.0% per annum. The Company may elect to pay up to 12.00% per annum in kind during the first year following the closing and up to 9.00% per annum in kind thereafter. The Company elected to pay 12.00% interest in kind for the three month ended June 30, 2023. The 1.0L 18.00% Senior Secured Term Loan contains financial and other covenant requirements, including, but not limited to, financial covenants that require the Company to maintain certain liquidity levels. In connection with the 1.0L 18.00% Senior Secured Term Loan, financing costs of $19.2 million were capitalized, net of amortization, and included in the unaudited Condensed Consolidated Balance Sheets as a component of Debt. These costs are amortized over the term of the 1.0L 18.00% Senior Secured Term Loan as a component of IInterest expense. 7.50% Senior Secured Notes, 1.5L 7.50% Senior Secured Notes and 2.0L 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. Refer to Note 13, "Acquisitions and Divestiture " for additional details. On May 15, 2023, the Company closed on an exchange agreement with approximately 68.2% of the 7.50% Senior Secured Notes holders, who agreed to exchange approximately $682.3 million aggregate principal amount of the 7.50% Senior Secured Notes for approximately $682.3 million of 1.5L 7.50% Senior Secured Notes due August 1, 2028. The 1.5L 7.50% Senior Secured Notes retain all the same terms and conditions of the 7.50% Senior Secured Notes except that they rank senior in lien priority to the remaining $317.7 million 2.0L 7.50% Senior Secured Notes. The 1.5L 7.50% Senior Secured Notes rank junior in right of payment to all existing and future secured debt of senior lien priority, the 1.0L 18.00% Senior Secured Term Loan, and are senior in right of payment to all other existing and future senior debt. No incremental Deferred Financing Costs were incurred in relation to the exchange of the 1.5L 7.50% Senior Secured Notes. The 2.0L 7.50% Senior Secured Notes have a maturity of August 1, 2028. Interest on the notes is payable semiannually, in arrears, on February 1 and August 1. The principal amount of the 2.0L 7.50% Senior Secured Notes is $317.7 million. The 2.0L 7.50% Senior Secured Notes rank junior in right of payment to all existing and future secured debt of senior lien priority, the 1.0L 18.00% Senior Secured Term Loan and 1.5L 7.50% Senior Secured Notes, and are senior in right of payment to all other existing and future senior debt. The 2.0L 7.50% Senior Secured Notes retain all other terms and conditions of the 7.50% Senior Secured Notes. In connection with the 7.50% Senior Secured Notes, financing costs of $15.8 million were capitalized, net of amortization, and included in the unaudited Condensed Consolidated Balance Sheets as a component of Debt. These costs are amortized over the term of the 7.50% Senior Secured Notes as a component of IInterest expense. Funding Debt Note 3, "Variable Interest Entities." Assets transferred to each SPV are legally isolated from the Company and its affiliates, as well as the claims of the Company’s and its affiliates’ creditors. Further, the assets of each SPV are owned by such SPV and are not available to satisfy the debts or other obligations of the Company or any of its affiliates. These debts are supported by the expected cash flows from the underlying collateralized finance receivables. Advances on the funding debt are determined based on the contractually agreed upon advance rates. Under the terms of each SPV credit facility, the effective advance rates vary from stated advanced rates based on certain performance metrics and eligibility requirements of pledged loan. Collections on these finance receivables are remitted to restricted cash collection accounts, which totaled $75.3 million and $52.3 million as of June 30, 2023 and December 31, 2022, respectively. The increase in restricted cash is based on the contractual requirements of the SPVs related to the total value and performance of the underlying collateralized finance receivables. Heights SPV On July 15, 2022, the Company entered into a $425.0 million non-recourse revolving warehouse facility to replace the incumbent lender's facility and finance future loans originated by Heights. The effective interest rate was 1-month SOFR plus 4.25% until May 15, 2023 when it increased to 1-month SOFR plus 4.71% at June 30, 2023. 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 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 June 30, 2023, the weighted average interest rate was 8.41%. 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. 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 June 30, 2023, the effective interest was one-month CDOR plus 3.59%. Canada SPV In August 2018, as amended in the fourth quarter of 2021 and first quarter of 2022, CURO Canada Receivables Limited Partnership, a wholly-owned subsidiary of the Company, entered into the Canada SPV. 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. Canada SPV II On May 15, 2023, the Company closed on a new C$110.0 million non-recourse revolving warehouse facility to finance loans in Canada. The facility includes a C$40.0 million accordion that is triggered at the lenders' discretion. The effective interest is three-month CDOR plus 8.00%. The Company also pays a 0.50% per annum commitment fee on the unused portion of the commitments. The warehouse revolving period will mature in November 2025. Senior Revolver The Company maintained the Senior Revolver that provided $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 most recent term expired August 31, 2023. The Senior Revolver accrued interest at one-month SOFR plus 5.00%. On May 15, 2023, the Company fully paid off the outstanding borrowings of $40.3 million of principal and accrued interest Senior Revolver using proceeds from the 1.0L 18.0% Senior Secured Term Loan described above. The early extinguishment of the Senior Revolver resulted in a loss of $0.1 million. Curo Canada Revolving Credit Facility Curo Canada maintained the Curo Canada Revolving Credit Facility, which provided short-term liquidity for the Company's Canadian direct lending operations. 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. On May 15, 2023, the Company executed the Third Supplemental Indenture, which amends the underlying indenture to, among other things, eliminate or amend substantially all of the restrictive covenants contained in the indenture other than those related to the payment of principal and interest. The Company incurred fees of $3.2 million, net of amortization, related to the debt covenant amendments. These fees were capitalized, and included in the unaudited Condensed Consolidated Balance Sheets as a component of Debt. These costs are amortized over the term of the SPV facilities as a component of Interest expense. Derivative Instruments and Hedging Activities During 2022, the Company entered into interest rate swaps to help manage interest rate risk on certain variable-rate debt facilities. The Company designated these risk management derivatives as qualifying cash flow hedges under hedge accounting. The derivative assets are included in Other assets on the unaudited Condensed Consolidated Balance Sheet and changes in the fair value of derivatives are recorded as a component of AOCI. The effectiveness of the hedges are assessed at least quarterly and were assessed as effective, as of and for the period ended June 30, 2023, 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. Additionally, they are presented in the same line item in the unaudited Condensed Consolidated Statements of Operations as the earnings effect of the hedged items and reflected in operating activities on the unaudited Condensed 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 due September 29, 2025 on the C$425.0 million, variable-rate portion of the borrowing facility, with a notional amount of C$425.0 million. As of June 30, 2023, a $4.7 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 due December 9, 2025 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 June 30, 2023, a $10.9 million interest rate swap is included in Other assets |
COMMITMENTS AND CONTENGENCIES
COMMITMENTS AND CONTENGENCIES | 6 Months Ended |
Jun. 30, 2023 | |
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 $345.0 thousand 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 | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 8 – INCOME TAXES The Company's effective income tax rate was (24.0)% and 19.2% for the six months ended June 30, 2023 and 2022, respectively. The effective income tax rate for the six months ended June 30, 2023 was lower than the blended federal and state/provincial statutory rate of approximately 26.0%, primarily as a result of recording a valuation allowance against U.S. deferred tax assets ("DTAs") of $43.5 million and lost tax benefits related to share-based compensation of $1.6 million. The effective income tax rate for the six months ended June 30, 2022, was lower than the blended federal and state/provincial statutory rate of approximately 26.0%, primarily as a result of proportionally more loss in lower rate jurisdictions combined with lost tax benefits related to share-based compensation of $0.8 million, officers’ compensation of $0.7 million, non-deductible transaction costs of $0.3 million and change in fair value of contingent consideration of $1.0 million. For the six months ended June 30, 2023, we continued to evaluate evidence to estimate whether sufficient future sources of income will be generated to permit the use of the existing DTAs in the U.S. During the first quarter of 2023, we determined that negative evidence outweighs the positive evidence of our ability to realize the U.S. DTAs. On this basis, we recorded a valuation allowance of $56.5 million against the U.S. DTAs, including $43.5 million recorded as Provision for income taxes and $13.0 million in Accumulated deficit related to the adoption of CECL. The Company intends to reinvest Canada earnings indefinitely in its Canadian operations and therefore has not provided for any non-U.S. withholding tax that would be assessed on dividend distributions. If the accumulated earnings in Canada of $223.5 million were distributed to the U.S. legal entities, the Company would be subject to Canadian withholding taxes of an estimated $11.2 million. The determination of the U.S. state income taxes upon a potential foreign earnings distribution is impractical. In the event the earnings are distributed to the U.S. legal entities, the Company will adjust the income tax provision for the applicable period and determine the amount of foreign tax credit that would be available. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2023 | |
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): Three Months Ended Six Months Ended 2023 2022 2023 2022 Net loss $ (59,327) $ (26,080) $ (118,798) $ (24,744) Weighted average common shares - basic 41,002 40,376 40,893 40,372 Weighted average common shares - diluted 41,002 40,376 40,893 40,372 Loss per share: Basic loss per share $ (1.45) $ (0.65) $ (2.91) $ (0.61) Diluted loss per share $ (1.45) $ (0.65) $ (2.91) $ (0.61) Potential shares of common stock that would have the effect of increasing diluted earnings per share or decreasing diluted loss per share are considered to be anti-dilutive; therefore, these shares are not included in calculating diluted earnings per share. For the three and six months ended June 30, 2023, there were 4.8 million and 4.4 million, respectively, and for the three and six months ended June 30, 2022, there were 3.1 million and 2.2 million, respectively, of potential shares of common stock excluded from the calculation of diluted earnings per share because their effect was anti-dilutive. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
LEASES | NOTE 10 – 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 June 30, 2023. 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 unaudited Condensed Consolidated Balance Sheets. Operating lease costs are included in "Occupancy" in the unaudited Condensed Consolidated Statement of Operations. The majority of leases have an original term up to five years plus renewal options under similar terms. During the first quarter of 2023, the Company recorded a $7.5 million expense for lease abandonment costs related to restructuring actions, with no further restructuring costs incurred during the three months ended June 30, 2023. For further information, refer to Note 1 4 , "Restructuring. " The following table summarizes the operating lease costs and other information for the three and six months ended June 30, 2023 and 2022 (dollars in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Operating lease costs: Third-Party $ 5,749 $ 9,574 $ 12,358 $ 19,053 Related-Party 157 827 314 1,654 Total operating lease costs $ 5,906 $ 10,401 $ 12,672 $ 20,707 Cash paid for amounts included in the measurement of operating lease liabilities $ 13,072 $ 21,581 ROU assets obtained $ 5,274 $ 6,398 Weighted average remaining lease term - Operating leases 4.3 years 4.7 years Weighted average discount rate - Operating leases 8.3 % 7.8 % The following table summarizes the aggregate operating lease payments that the Company was contractually obligated to make under operating leases as of June 30, 2023 (in thousands): Third-Party Related-Party Total Remainder of 2023 $ 11,644 $ 313 $ 11,957 2024 18,614 634 19,248 2025 13,050 651 13,701 2026 7,199 669 7,868 2027 4,554 687 5,241 2028 2,661 668 3,329 Thereafter 6,120 326 6,446 Total 63,842 3,948 67,790 Less: Imputed interest (10,182) (1,023) (11,205) Operating lease liabilities $ 53,660 $ 2,925 $ 56,585 There were no material leases entered into subsequent to the balance sheet date. |
DIVIDENDS
DIVIDENDS | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
DIVIDENDS | NOTE 11 – DIVIDENDS Dividend Program In October 2022, the Company's Board of Directors suspended its previously authorized quarterly dividend of $0.11 per share ($0.44 per share annualized). There were no dividends paid in the six months ended June 30, 2023 , except those related to previously declared dividends on RSUs vested during the six months ended June 30, 2023 |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 12 – SEGMENT REPORTING Segment information is prepared on the same basis that the Company's CODM reviews financial information for operational decision making purposes, including gross revenues, net revenue, gross margin, segment operating income and other items. During the first quarter of 2023, the Company's Chief Executive Officer, who is also the CODM, changed the manner in which he reviews financial information for purposes of assessing business performance, managing the business and allocating resources. In conjunction with this change, the Company realigned its segment structure resulting in the Company having two operating segments: Direct Lending and Canada POS Lending. Direct Lending. The Direct Lending operating segment represents the majority of net revenue and gross profit. This operating segment represents the Revolving LOC, secured and unsecured installment and single-pay loan products, together with the credit protection and other insurance products and other ancillary sales in the U.S. and Canada, which historically was comprised of the U.S. Direct Lending and Canada Direct Lending operating segments. The U.S. and Canada have similar economic and operating characteristics, including the nature of products and services offered, operating procedures and risks, customer bases and shared corporate resources, which led the CODM to conclude that these separate segments combine to form one operating segment. As of June 30, 2023, the Company operated over 490 U.S. retail locations in 13 states. As of June 30, 2023, the Company operated nearly 150 stores across eight Canadian provinces and had an online presence in eight provinces and one territory. Canada POS Lending. As of June 30, 2023, the Company served Canadian customers through POS financing available at over 8,800 retail locations and over 3,700 merchant partners across 10 provinces and two territories. The Company provides Revolving LOC loans and a number of other ancillary financial products. All prior period amounts related to the segment realignment have been retrospectively reclassified throughout to conform to the new presentation. Three Months Ended Six Months Ended 2023 2022 2023 2022 Revenues by segment: (1) Direct Lending $ 167,016 $ 281,251 $ 336,384 $ 551,138 Canada POS Lending 42,227 23,153 82,332 43,462 Consolidated revenue $ 209,243 $ 304,404 $ 418,716 $ 594,600 Net revenues by segment: Direct Lending $ 103,261 $ 157,667 $ 224,265 $ 338,737 Canada POS Lending 26,384 17,191 51,921 28,786 Consolidated net revenue $ 129,645 $ 174,858 $ 276,186 $ 367,523 Segment (loss) before income taxes: Direct Lending $ (50,917) $ (21,596) $ (82,549) $ (8,619) Canada POS Lending (6,119) (11,474) (13,255) (22,009) Consolidated (loss) before income taxes $ (57,036) $ (33,070) $ (95,804) $ (30,628) Expenditures for long-lived assets by segment: Direct Lending $ 5,257 $ 4,670 $ 9,114 $ 11,985 Canada POS Lending 6,556 6,040 12,726 10,264 Consolidated expenditures for long-lived assets $ 11,813 $ 10,710 $ 21,840 $ 22,249 (1) For revenue by product, see Note 2, "Loans Receivable and Revenue." The following table presents the proportion of gross loans receivable by segment (in thousands): June 30, December 31, Direct Lending $ 1,227,615 $ 1,254,395 Canada POS Lending 912,250 833,438 Total gross loans receivable $ 2,139,865 $ 2,087,833 Geographic Data The following table presents total revenues by geographic region: Three Months Ended Six Months Ended 2023 2022 2023 2022 U.S. $ 89,400 $ 205,711 $ 181,825 $ 404,110 Canada 119,843 98,693 236,891 190,490 Total revenue $ 209,243 $ 304,404 $ 418,716 $ 594,600 The following table presents the proportion of gross loans receivable by geographic region: June 30, December 31, U.S. $ 718,586 $ 773,380 Canada 1,421,279 1,314,453 Total gross loans receivable $ 2,139,865 $ 2,087,833 The following table presents the Company's net long-lived assets, comprised of property and equipment, by geographic region. These amounts are aggregated on a legal entity basis and do not necessarily reflect where the asset is physically located (in thousands): June 30, December 31, U.S. $ 11,430 $ 29,232 Canada 16,988 2,725 Total net long-lived assets $ 28,418 $ 31,957 The CODM does not review total 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 | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS AND DIVESTITURE | NOTE 13 – ACQUISITIONS AND DIVESTITURE ACQUISITIONS First Heritage On July 13, 2022, the Company 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 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 unaudited Condensed Consolidated Financial Statements on July 13, 2022 within the Direct Lending operating segment. 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 acquired assets and liabilities assumed are provisional based on the preliminary fair value estimates as of the acquisition date. The values assigned to the assets acquired and liabilities assumed are based on preliminary estimates of fair value available as of the date of this Form 10-Q and may be adjusted during the measurement period of up to 12 months from the date of acquisition as further information becomes available. Any changes in the fair values of the assets acquired and liabilities assumed during the measurement period may result in adjustments to goodwill. As of June 30, 2023, the Company completed the determination of the fair values of the acquired identifiable assets and liabilities. 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. Heights On December 27, 2021, the Company acquired 100% of the outstanding stock of Heights for $360.0 million, consisting of $335.0 million in cash and $25.0 million of the Company's common stock. Heights 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 in the unaudited Condensed Consolidated Financial Statements on December 27, 2021 within the Direct Lending operating segment. 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 year 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. 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 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 unaudited Condensed Consolidated Statement of Operations. Per ASC 205 : Presentation of Financial Statements , the sale of the business is not classified as discontinued operations in the Company’s operations or financial results. The Company reduced the gain by $2.0 million in the six months ended June 30, 2023 based on expected uncollectible amounts. There was no change to this calculation in the three months ended June 30, 2023. The following table presents the amounts attributable to each category recorded in the Company’s unaudited Condensed Consolidated Balance Sheet as of the date of divestiture of the Legacy U.S. Direct Lending Business, as adjusted (in thousands): Amounts divested of on July 8, 2022 Subsequent adjustments Amounts divested of on July 8, 2022 (as adjusted) Assets Cash, cash equivalents and restricted cash $ 21,292 $ — $ 21,292 Loans receivable 162,147 — 162,147 Right of use asset 39,326 — 39,326 Goodwill 91,131 — 91,131 Other assets (1) 30,690 (2,027) 28,663 Total assets $ 344,586 $ (2,027) $ 342,559 Liabilities Accounts payable and accrued liabilities $ (8,947) $ — $ (8,947) Right of use liability (43,433) — (43,433) Liability for losses on CSO lender-owned consumer loans (5,628) — (5,628) Other long term liabilities (2) (5,815) — (5,815) Total liabilities $ (63,823) $ — $ (63,823) Net assets sold $ 280,763 $ 280,763 Total proceeds 349,207 (2,027) 347,180 Total pretax gain on sale of business $ 68,444 $ 66,417 (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$21.3 million and $57.1 million for the three and six months ended June 30, 2022, respectively. 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 Legacy 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. |
RESTRUCTURING
RESTRUCTURING | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | NOTE 14 – RESTRUCTURING On October 5, 2022, the Company's 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 the acquisitions of Heights in December of 2021 and First Heritage in July of 2022. For the year ended December 31, 2022, the Company incurred $16.0 million of expense related to our restructuring actions, of which $7.9 million related to employee termination benefits resulting from the workforce reduction of approximately 150 employees, and $8.2 million related to lease abandonment costs resulting from the closure of 89 stores in the U.S. and Canada. For the six months ended June 30, 2023, the Company incurred an additional $10.0 million of expense related to our restructuring actions, of which $2.5 million related to employee termination benefits, and $7.5 million related to lease abandonment costs resulting from the closure of stores in the U.S. and Canada. There were no restructuring costs incurred during the three months ended June 30, 2023. The following table shows the total restructuring costs incurred during the six months ended June 30, 2023, (in thousands): Six months ended June 30, 2023 Employee Termination Benefits Lease Exit Costs Total Restructuring Costs Salaries and Benefits $ 1,517 $ — $ 1,517 Other Operating Expense 958 7,481 8,439 Total $ 2,475 $ 7,481 $ 9,956 The following table shows the total amount incurred and liability, which is recorded in accounts payables and other accrued liabilities in the unaudited Condensed Consolidated Balance Sheets, for restructuring-related costs as of June 30, 2023: Accrued restructuring costs as of December 31, 2022 $ 4,746 Restructuring costs incurred during the three months ended March 31, 2023 9,956 Amount paid during the three months ended March 31, 2023 (4,641) Accrued restructuring costs as of March 31, 2023 $ 10,061 Restructuring costs incurred during the three months ended June 30, 2023 — Amount paid during the three months ended June 30, 2023 (2,904) Accrued restructuring costs as of June 30, 2023 $ 7,157 |
SHARE REPURCHASE PROGRAM
SHARE REPURCHASE PROGRAM | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
SHARE REPURCHASE PROGRAM | NOTE 15 – 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 its common stock. In March 2023, the Board of Directors terminated the program. There were no repurchases under this program. 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 Company repurchased 824,477 shares of common stock under the plan at an average price of $15.20 for a total cost of $12.5 million during the six months ended June 30, 2022. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 16 – SUBSEQUENT EVENTSOn August 2, 2023, the Company entered into a Share Purchase Agreement (the “SPA”) with Questrade Financial Group Inc. (“Buyer”) pursuant to which the Buyer agreed to purchase all of the issued and outstanding equity interests of FLX Holding Corp. ("Flexiti Holding") for a purchase price of approximately C$55.0 million, subject to an adjustment based on Flexiti Holding's certain tangible book value and certain other adjustments, as provided in the SPA. Flexiti Holding constitutes the entirety of the Company’s Canada POS Lending Segment. The Company expects to close the transaction during the third quarter of 2023, subject to agreed customary closing conditions, including receipt of required regulatory approvals. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company has prepared the accompanying unaudited Condensed Consolidated Financial Statements in accordance with U.S. GAAP and the accounting policies described in its 2022 Form 10-K. Interim results of operations are not necessarily indicative of results that might be expected for future interim periods or for the year ending December 31, 2023. While certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted, the Company believes that the disclosures are adequate to enable a reasonable understanding of the information presented. Additionally, the Company qualifies as an SRC, which allows registrants to report information under scaled disclosure requirements. SRC status is determined on an annual basis as of June 30th. The Company met the definition of an SRC as of June 30, 2023 and will evaluate its status as of June 30, 2024. |
Revised Presentation | Revised Presentation Beginning January 1, 2023, the Company began reporting "Insurance and other income" in place of the previously reported "Insurance premiums and commissions" and "Other revenue" line items in the unaudited Condensed Consolidated Statements of Operations. Prior period amounts have been reclassified to conform with current period presentation. Beginning September 30, 2022, the Company began reporting "Loss (gain) on change in fair value of contingent consideration" separately on the unaudited Condensed Consolidated Statements of Operations compared to historical presentation within Other operating expense. Prior period amounts have been reclassified to conform with current period presentation. |
Principles of Consolidation | Principles of Consolidation The unaudited Condensed Consolidated Financial Statements reflect the accounts of CURO and its direct and indirect subsidiaries, including First Heritage, which we acquired on July 13, 2022. Refer to Note 13, "Acquisitions and Divestiture" for further disclosures related to this acquisitions. Intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of EstimatesThe preparation of the unaudited Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. Some estimates may also affect the reported amounts of revenues and expenses during the periods presented. Significant estimates that the Company made in the accompanying unaudited Condensed Consolidated Financial Statements include ACL, certain assumptions related to equity investments, goodwill and intangibles, accruals related to self-insurance, estimated tax liabilities and the accounting for acquisitions. Actual results may differ from those estimates. |
Allowance for Credit Losses | Allowance for Credit Losses The FASB has changed the impairment model for estimating credit losses on financial assets. The previous incurred loss impairment model required the recognition of credit losses when it was probable that a loss had been incurred. The incurred loss model was replaced by the CECL model, which requires entities to estimate the lifetime expected credit loss on financial instruments and to record an allowance to offset the amortized cost basis of the financial asset. The CECL model requires earlier recognition of credit losses as compared to the incurred loss approach. The Company adopted this standard effective January 1, 2023. The initial impact of adoption was a $100.0 million increase to accumulated deficit ($135.2 million increase to the ACL, net of $35.2 million in taxes). For the three months ended March 31, 2023, we recorded a valuation allowance against the U.S. DTAs. See Note 8 - Income Taxes for further information. As a result, the Company decreased the tax impact to Accumulated deficit by $13.0 million as a result of the valuation allowance for the three months ended March 31, 2023. As of adoption on January 1, 2023, the impact of CECL was recorded as a $113.0 million increase to Accumulated deficit ($135.2 million increase to the ACL, net of $22.2 million in taxes). The ACL on gross loans receivables reduces the outstanding gross loans receivables balance in the unaudited Condensed Consolidated Balance Sheets. After adoption, all changes in the ACL, net of charge-offs and recoveries, are recorded as “Provision for losses” in the unaudited Condensed Consolidated Statements of Operations. The ACL is based on an analysis of historical loss, charge-off rates and recoveries. The Company also considers delinquency trends, impact of new loan products, changes to underwriting criteria or lending policies, changes in jurisdictional regulations or laws, recent credit trends and reasonable and supportable economic forecasts, which cover the life of the loan. The Company will also adjust for quantitative and qualitative factors that are not fully reflected in the historical data. 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. The Company charges credit losses, including accrued interest, against the allowance when the account reaches 180 days contractually delinquent, subject to certain exceptions. Any recoveries on loans previously charged to the ACL are credited to the ACL when collected. The Company selected a static pool Probability of Default (“PD”) / Loss Given Default (“LGD”) / Exposure at Default ("EAD") model to estimate its base allowance for credit losses, in which the estimated loss is equal to the product of PD, LGD and EAD. Historical static pools of net loans receivables are tracked over the term of the pools to identify the probability of loss (PD) and the average size of losses, net of recoveries (LGD and EAD). As loans receivable are originated, provisions for credit losses are recorded in amounts sufficient to maintain an ACL at an adequate level to provide for estimated losses over the contractual term of the loan receivables. Subsequent changes to the contractual terms resulting from re-underwriting are not included in the loan receivable’s expected life. The Company uses its historical loss experience to forecast expected credit losses. Historical information about losses generally provides a basis for the estimate of expected credit losses. The Company also considers the need to adjust historical information to reflect the extent to which current conditions differ from the conditions that existed for the period over which historical information was evaluated. These adjustments to historical loss information may be qualitative or quantitative in nature. Reasonable and supportable macroeconomic forecasts are required for the Company’s ACL model. The projected change in creditworthiness is modeled using Congressional Budget Office data such as unemployment rate and personal income. The Company adjusts the historical loss experience by relevant qualitative factors for these expectations. Canada Loss Recognition Effective January 1, 2023, the Company modified the timeframe over which it charges-off loans within the Direct Lending brands in Canada and made related refinements to its loss provisioning methodology. Prior to January 1, 2023, the Company deemed the Direct Lending brands in Canada uncollectible and charged-off on day 91 past-due. As part of our policy alignment within the Direct Lending operating segment, the Company revised its estimates and now considers a loan issued by the Direct Lending brands in Canada loans uncollectible when they have been contractually past-due for more than 180 consecutive days. Consequently, such past-due loans and related accrued interest now remain in loans receivable for 180 days before being charged-off against the ACL. All recoveries on charged-off loans are credited to the ACL when received. The Company evaluates the adequacy of the ACL compared to the related gross loans receivable balances that include accrued interest. The aforementioned change was treated as a change in accounting estimate and applied prospectively effective January 1, 2023. The change affects comparability to prior periods as follows: • Gross loans receivable: balances as of June 30, 2023 include $20.9 million of the Direct Lending brands in Canada loans that are between 91 and 180 days past-due with related accrued interest, while such balances for prior periods do not include any loans that are between 91 and 180 days past-due. • Revenues: for the three and six month periods ended June 30, 2023, revenues include accrued interest on the Direct Lending brands in Canada loans between 91 and 180 days past-due of $0.3 million and $2.5 million respectively, while revenues in prior periods do not include any loans that are between 91 and 180 days past-due. |
Recently Issued Accounting Pronouncements Recently Adopted | Recently Issued Accounting Pronouncements Recently 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. As a result of the adoption of CECL on January 1, 2023, through a modified-retrospective approach, the Company recorded an increase to the ACL of $135.2 million and a corresponding one-time, cumulative reduction to retained earnings of $113.0 million (net of $22.2 million in taxes) in the unaudited Condensed Consolidated Balance Sheet as of January 1, 2023. The Company’s ACL increased from 5.8% to 12.6% as a percentage of the amortized cost basis on January 1, 2023. In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures , which removes the accounting guidance for troubled debt restructurings and requires entities to evaluate whether a modification provided to a customer results in a new loan or continuation of an existing loan. The amendments enhance existing disclosures and require new disclosures for receivables when there has been a modification in contractual cash flows due to a customer experiencing financial difficulties. Additionally, the amendments require disclosure of gross charge-off information by year of origination in the vintage disclosures. The Company adopted this guidance as of January 1, 2023 using the modified retrospective method. Adoption of this standard did not have a material impact on our unaudited Condensed Consolidated Financial Statements. As result of the adoption of ASU 2016-13, several of our significant accounting policies have changed to reflect the requirements of the new standard. See above for these updated significant accounting policies as of January 1, 2023. 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 . The adoption of ASU 2021-08 at January 1, 2023 did not have a material effect on the Company's unaudited Condensed Consolidated Financial Statements. |
Variable Interest Entities | The Company has determined that it is the primary beneficiary of the VIEs and is required to consolidate them. The Company includes the assets and liabilities related to the VIEs in the unaudited Condensed Consolidated Financial Statements. The assets of a VIE can be used only to settle liabilities of that VIE. Creditors (or beneficial interest holders) of the VIEs do not have recourse to the Company's general credit. |
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 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) | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Summary of Revenue by Product | The following table summarizes revenue by product (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Revolving LOC $ 86,703 $ 96,583 $ 170,928 $ 187,606 Installment 92,283 181,748 187,495 355,681 Total interest and fees revenue 178,986 278,331 358,423 543,287 Insurance and other income 30,257 26,073 60,293 51,313 Total revenue $ 209,243 $ 304,404 $ 418,716 $ 594,600 |
Summary of Loans Receivable by Product and Related Delinquent Loans | The following tables summarize loans receivable by product and the related delinquent loans receivable (in thousands): June 30, 2023 Revolving LOC Installment Total Current loans receivable $ 1,256,338 $ 634,077 $ 1,890,415 1-30 days past-due 51,799 59,558 111,357 Delinquent: 31-60 days past-due 23,159 17,799 40,958 61-90 days past-due 15,969 12,464 28,433 91 + days past-due 37,887 30,815 68,702 Total delinquent loans receivable 77,015 61,078 138,093 Total loans receivable 1,385,152 754,713 2,139,865 Less: allowance for credit losses (187,973) (84,642) (272,615) Loans receivable, net $ 1,197,179 $ 670,071 $ 1,867,250 December 31, 2022 Revolving LOC Installment Total Current loans receivable $ 1,194,554 $ 649,262 $ 1,843,816 1-30 days past-due 46,956 76,709 123,665 Delinquent: 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 Delinquent loans receivable 43,005 77,347 120,352 Total loans receivable 1,284,515 803,318 2,087,833 Less: allowance for credit losses (78,815) (43,213) (122,028) Loans receivable, net $ 1,205,700 $ 760,105 $ 1,965,805 June 30, 2023 31-60 days past-due 61-90 days past-due 91 + days past-due Total past due 90 or more days delinquent and accruing Total non-accruing (1) Revolving LOC $ 23,159 $ 15,969 $ 37,887 $ 77,015 $ 22,551 $ 17,805 Installment 17,799 12,464 30,815 61,078 2,554 32,046 Total delinquent loans $ 40,958 $ 28,433 $ 68,702 $ 138,093 $ 25,105 $ 49,851 Percentage of total loan receivables 1.9 % 1.3 % 3.2 % 6.5 % 1.2 % 2.3 % (1) The gross interest income that was recognized related to non-accruing loans was $0.9 million and $5.7 million for the three and six months ended June 30, 2023. |
Summary of Activity in Allowance for Loan Losses, Credit Services Organization Guarantee Liability | The following tables summarize activity in the ACL (in thousands) for the three and six months ended June 30, 2023, including the impact of the adoption of ASU 2016-13 as discussed in Note 1 , " Summary of Significant Accounting Policies and Nature of Operations ": Three Months Ended Revolving LOC Installment Other Total Allowance for credit losses: Balance, beginning of period $ 175,101 $ 84,858 $ — $ 259,959 Charge-offs (40,600) (45,400) (1,644) (87,644) Recoveries 7,814 9,929 149 17,892 Net charge-offs (32,786) (35,471) (1,495) (69,752) Provision for losses 42,932 35,171 1,495 79,598 Effect of foreign currency translation 2,726 84 — 2,810 Balance, end of period $ 187,973 $ 84,642 $ — $ 272,615 Six Months Ended Revolving LOC Installment Other Total Allowance for credit losses: Balance, beginning of period, prior to adoption of ASU 2016-13 $ 78,815 $ 43,213 $ — $ 122,028 Impact of adoption of ASU 2016-13 83,646 51,566 — 135,212 Balance, January 1, 2023 162,461 94,779 — 257,240 Charge-offs (64,872) (96,920) (3,644) (165,436) Recoveries 14,133 20,371 464 34,968 Net charge-offs (50,739) (76,549) (3,180) (130,468) Provision for losses 73,039 66,311 3,180 142,530 Effect of foreign currency translation 3,212 101 — 3,313 Balance, end of period $ 187,973 $ 84,642 $ — $ 272,615 The following table presents an analysis of the activity in the ACL and the liability for losses on CSO lender-owned consumer loans (in thousands) for the three and six months ended June 30, 2022, prior to the adoption of ASU 2016-13, as defined by the accounting guidance in effect at that time: Three Months Ended Revolving LOC Installment Other Total Allowance for credit losses: Balance, beginning of period $ 71,325 $ 26,843 $ 1,390 $ 99,558 Charge-offs (42,706) (67,713) (4,498) (114,917) Recoveries 8,761 27,823 480 37,064 Net charge-offs (33,945) (39,890) (4,018) (77,853) Provision for losses 40,435 58,172 2,628 101,235 Effect of foreign currency translation (2,687) (68) — (2,755) Balance, end of period $ 75,128 $ 45,057 $ — $ 120,185 Liability for losses on CSO lender-owned consumer loans (1) : Balance, beginning of period $ — $ 7,166 $ — $ 7,166 Decrease in liability — 917 — 917 Balance, end of period $ — $ 8,083 $ — $ 8,083 (1) The CSO program guarantee liability was classified as Held for Sale. Six Months Ended Revolving LOC Installment Other Total Allowance for credit losses: Balance, beginning of period $ 68,140 $ 19,420 $ — $ 87,560 Charge-offs (85,093) (126,922) (6,311) (218,326) Recoveries 16,776 58,736 1,033 76,545 Net charge-offs (68,317) (68,186) (5,278) (141,781) Provision for losses 77,882 93,858 5,278 177,018 Effect of foreign currency translation (2,577) (35) — (2,612) Balance, end of period $ 75,128 $ 45,057 $ — $ 120,185 Liability for losses on CSO lender-owned consumer loans (1) : Balance, beginning of period $ — $ 6,908 $ — $ 6,908 Decrease in liability — 1,175 — 1,175 Balance, end of period $ — $ 8,083 $ — $ 8,083 (1) The CSO program guarantee liability was classified as Held for Sale. |
Schedule of Credit Quality Indicators | The tables below presents key credit quality indicators, by origination year for installment loans, as of and for the three and six months ended June 30, 2023 (in thousands): Gross loans receivables by origination year, as of June 30, 2023 Delinquent Current 1-30 days past-due 31-60 days past-due 61-90 days past-due 91+ days past due Total Delinquent Total Loans Receivable Revolving LOC $ 1,256,338 $ 51,799 $ 23,159 $ 15,969 $ 37,887 $ 77,015 $ 1,385,152 Installment loans 2023 $ 339,302 $ 23,445 $ 6,223 $ 3,754 $ 3,964 $ 13,941 $ 376,688 2022 237,504 26,211 8,683 6,761 21,533 36,977 300,692 2021 51,770 8,724 2,587 1,807 4,684 9,078 69,572 2020 4,692 1,087 270 121 380 771 6,550 2019 448 82 22 14 46 82 612 Prior 361 9 14 7 208 229 599 Total installment loans $ 634,077 $ 59,558 $ 17,799 $ 12,464 $ 30,815 $ 61,078 $ 754,713 Total loans receivables $ 1,890,415 $ 111,357 $ 40,958 $ 28,433 $ 68,702 $ 138,093 $ 2,139,865 Activity by origination year Three Months Ended Six Months Ended Gross charge offs Gross recoveries Net charge-offs Gross charge offs Gross recoveries Net charge-offs Revolving LOC $ (40,600) $ 7,814 $ (32,786) $ (64,872) $ 14,133 $ (50,739) Installment loans 2023 $ (10,090) $ 5,607 $ (4,483) $ (17,108) $ 9,069 $ (8,039) 2022 (30,088) 1,161 (28,927) (63,625) 4,549 (59,076) 2021 (4,508) 1,055 (3,453) (14,320) 2,210 (12,110) 2020 (373) 457 84 (1,180) 1,052 (128) 2019 (38) 458 420 (116) 1,019 903 Prior (303) 1,191 888 (571) 2,472 1,901 Total installment loans $ (45,400) $ 9,929 $ (35,471) $ (96,920) $ 20,371 $ (76,549) Total loans receivables $ (86,000) $ 17,743 $ (68,257) $ (161,792) $ 34,504 $ (127,288) |
Summary of Subsequent Defaults | The following table presents the type, number and amount of loans to customers experiencing financial difficulty that modified their loans between January 1, 2023 and June 30, 2023, and experienced a payment default as evidenced by a charged-off loan during the period presented (dollars in thousands): Three Months Ended Six Months Ended Number of Accounts defaulted (charged-off) Value of accounts defaulted (charged-off) Number of Accounts defaulted (charged-off) Value of accounts defaulted (charged-off) Revolving LOC 169 $ 266 1,949 $ 269 Installment 21 192 176 247 Total defaults 190 $ 458 2,125 $ 516 |
Summary of Outstanding TDR Receivables | The following table provides information on the financial effect of the loan modifications to customers experiencing financial difficulty in the period during the period presented (in thousands): Three Months Ended Six Months Ended Amount % of Loan Receivables Amount % of Loan Receivables Revolving LOC modifications Principal / accrued interest forgiven $ 760 — % $ 1,307 0.1 % Weighted average interest rate reduction 23.23 % 23.23 % Installment modifications Principal / accrued interest forgiven 1 — % 46 — % Total principal/ accrued interest modifications $ 761 — % $ 1,353 0.1 % The following table provides information on the performance of loans modified to customers experiencing financial difficulty which have been modified subsequent to January 1, 2023 and remain outstanding at June 30, 2023 (in thousands): Amortized Cost Basis, as of June 30, 2023 Delinquent Current 1-30 days past-due 31-60 days past-due 61-90 days past-due 91+ days past-due Total delinquent Revolving LOC $ 22,853 $ 4,106 $ 2,124 $ 1,564 $ 3,283 $ 6,971 Installment 35 22 11 17 94 122 Total delinquent modified loans $ 22,888 $ 4,128 $ 2,135 $ 1,581 $ 3,377 $ 7,093 Percentage of total loan receivables 1.1 % 0.2 % 0.1 % 0.1 % 0.2 % 0.3 % The table below presents TDRs that are related to the Company's Customer Care Program implemented in response to COVID-19, included in both gross loans receivable and the impairment included in the ACL (in thousands) as of June 30, 2022: As of June 30, 2022 Current TDR gross receivables $ 13,686 Delinquent TDR gross receivables 5,214 Total TDR gross receivables 18,900 Less: Impairment included in the allowance for credit losses (4,777) Less: Additional allowance (1,353) Outstanding TDR receivables, net of impairment $ 12,770 The tables below present loans modified and classified as TDRs during the periods presented (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2022 Pre-modification TDR loans receivable $ 4,390 $ 7,254 Post-modification TDR loans receivable 4,046 6,404 Total concessions included in gross charge-offs $ 344 $ 850 The table below presents the Company's average outstanding TDR loans receivable, interest income recognized on TDR loans and number of TDR loans for the periods presented (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2022 Average outstanding TDR loans receivable $ 17,773 $ 17,397 Interest income recognized $ 3,991 $ 8,026 Number of TDR loans 2,773 6,197 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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): June 30, December 31, Assets Restricted cash $ 75,298 $ 52,277 Loans receivable, net 1,792,229 1,855,824 Prepaid expenses and other 15,702 12,908 Deferred tax assets 22,082 17,027 Total Assets $ 1,905,311 $ 1,938,036 Liabilities Accounts payable and accrued liabilities $ 11,338 $ 13,571 Deferred revenue 28 31 Accrued interest 7,974 7,023 Income Taxes Payable 9,828 7,850 Debt 1,640,455 1,589,380 Total Liabilities $ 1,669,623 $ 1,617,855 |
GOODWILL (Tables)
GOODWILL (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The change in the carrying amount of goodwill by reporting unit for the six months ended June 30, 2023 was as follows (in thousands): Direct Lending Canada POS Lending Total Goodwill at December 31, 2022 $ 276,269 $ — $ 276,269 Foreign currency translation 800 — 800 Goodwill at June 30, 2023 $ 277,069 $ — $ 277,069 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 unaudited Condensed Consolidated Balance Sheets at June 30, 2023 (in thousands): Estimated Fair Value Carrying Value June 30, Level 1 Level 2 Level 3 Total Financial assets: Cash Surrender Value of Life Insurance $ 5,931 $ 5,931 $ — $ — $ 5,931 Derivative asset 10,930 — 10,930 — 10,930 Financial liabilities: Non-qualified deferred compensation plan $ 4,372 $ 4,372 $ — $ — $ 4,372 Contingent consideration related to acquisition 18,499 — 18,499 — 18,499 The table below presents the assets and liabilities that were carried at fair value on the unaudited Condensed 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 asset 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 |
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 unaudited Condensed Consolidated Balance Sheets at June 30, 2023 (in thousands): Estimated Fair Value Carrying Value June 30, Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 112,531 $ 112,531 $ — $ — $ 112,531 Restricted cash 109,484 109,484 — — 109,484 Loans receivable, net 1,867,250 — — 1,867,250 1,867,250 Investment in Katapult 18,368 19,396 — — 19,396 Financial liabilities: 1.0L 18.00% Senior Secured Term Loan $ 148,249 $ — $ — $ 148,249 $ 148,249 1.5L 7.50% Senior Secured Notes 671,496 — 257,568 — 257,568 2.0L 7.50% Senior Secured Notes 312,672 — 70,688 — 70,688 Heights SPV 380,439 — — 387,185 387,185 First Heritage SPV 155,926 — — 159,473 159,473 Flexiti SPV 389,725 — — 394,018 394,018 Flexiti Securitization 394,975 — — 398,743 398,743 Canada SPV 249,377 — — 251,884 251,884 Canada SPV II 70,013 — — 72,210 72,210 The table below presents the assets and liabilities that were not carried at fair value on the unaudited Condensed Consolidated Balance Sheets at December 31, 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 Senior Revolver 35,000 — — 35,000 35,000 |
Summary of Equity Method Investments | The table below presents the Company's investment in Katapult (in thousands): Investment in Katapult Balance at December 31, 2021 $ 27,900 Equity method income - Q1 2022 1,584 Balance at March 31, 2022 29,484 Equity method loss - Q2 2022 (1,328) Balance at June 30, 2022 28,156 Equity method loss - Q3 2022 (2,309) Balance at September 30, 2022 25,847 Equity method loss - Q4 2022 (1,932) Balance at December 31, 2022 23,915 Equity method loss - Q1 2023 (3,413) Balance at March 31, 2023 20,502 Equity method loss - Q2 2023 (2,134) Balance at June 30, 2023 $ 18,368 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The Company's debt instruments and balances outstanding as of June 30, 2023 and December 31, 2022, including maturity date, effective interest rate and borrowing capacity, subject to borrowing base limitations, were as follows (dollars in thousands): Effective interest rate Outstanding as of Maturity Date Borrowing Capacity June 30, 2023 December 31, 2022 Corporate Debt: 1.0L 18.00% Senior Secured Term Loan August 2, 2027 18.00 % $ 167,495 $ — 1.5L 7.50% Senior Secured Notes August 1, 2028 7.50 % 682,298 — 2.0L 7.50% Senior Secured Notes August 1, 2028 7.50 % 317,702 — 7.5% Senior Secured Notes August 1, 2028 7.50 % — 1,000,000 Total corporate debt 1,167,495 1,000,000 Funding Debt: Heights SPV July 15, 2025 1-Mo SOFR + 4.71% $425.0 million $ 387,185 $ 400,758 First Heritage SPV July 13, 2025 1-Mo SOFR + 4.25% $225.0 million 159,473 182,751 Flexiti SPV (1) September 29, 2025 Weighted average interest rate (2)(3) 8.41% C$535.0 million 394,018 343,565 Flexiti Securitization (1) (4) December 9, 2025 1-Mo CDOR + 3.59% (3) C$526.5 million 398,743 387,759 Canada SPV (1) August 2, 2026 3-Mo CDOR + 6.00% C$400.0 million 251,884 294,594 Canada SPV II November 12, 2025 3-Mo CDOR + 8.00% C$110.0 million 72,210 — Senior Revolver (5) N/A 1-Mo SOFR + 5.00% $40.0 million — 35,000 Total funding debt $ 1,663,513 $ 1,644,427 Less: debt issuance costs (58,136) (37,113) Total Debt $ 2,772,872 $ 2,607,314 (1) Capacity amounts are denominated in Canadian dollars, whereas outstanding balances as of June 30, 2023 and December 31, 2022 are denominated in U.S. dollars. The exchange rate applied at June 30, 2023 was 0.7573 and the exchange rate at December 31, 2022 was 0.7365. (2) The weighted average interest rate does not include the impact of the amortization of deferred loan origination costs or debt discounts. (3) 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. (4) The effective rate is 7.09%. (5) On May 15, 2023, the Company utilized the proceeds from the $150.0 million 1.0L 18.00% Senior Secured Term Loan to pay off the Senior Revolver. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the computation of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended Six Months Ended 2023 2022 2023 2022 Net loss $ (59,327) $ (26,080) $ (118,798) $ (24,744) Weighted average common shares - basic 41,002 40,376 40,893 40,372 Weighted average common shares - diluted 41,002 40,376 40,893 40,372 Loss per share: Basic loss per share $ (1.45) $ (0.65) $ (2.91) $ (0.61) Diluted loss per share $ (1.45) $ (0.65) $ (2.91) $ (0.61) |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Summary of Operating Lease Costs | The following table summarizes the operating lease costs and other information for the three and six months ended June 30, 2023 and 2022 (dollars in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Operating lease costs: Third-Party $ 5,749 $ 9,574 $ 12,358 $ 19,053 Related-Party 157 827 314 1,654 Total operating lease costs $ 5,906 $ 10,401 $ 12,672 $ 20,707 Cash paid for amounts included in the measurement of operating lease liabilities $ 13,072 $ 21,581 ROU assets obtained $ 5,274 $ 6,398 Weighted average remaining lease term - Operating leases 4.3 years 4.7 years Weighted average discount rate - Operating leases 8.3 % 7.8 % |
Summary of Future Minimum Lease Payments | The following table summarizes the aggregate operating lease payments that the Company was contractually obligated to make under operating leases as of June 30, 2023 (in thousands): Third-Party Related-Party Total Remainder of 2023 $ 11,644 $ 313 $ 11,957 2024 18,614 634 19,248 2025 13,050 651 13,701 2026 7,199 669 7,868 2027 4,554 687 5,241 2028 2,661 668 3,329 Thereafter 6,120 326 6,446 Total 63,842 3,948 67,790 Less: Imputed interest (10,182) (1,023) (11,205) Operating lease liabilities $ 53,660 $ 2,925 $ 56,585 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Summary of Financial Information by Segment | The following table illustrates summarized financial information concerning reportable segments (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Revenues by segment: (1) Direct Lending $ 167,016 $ 281,251 $ 336,384 $ 551,138 Canada POS Lending 42,227 23,153 82,332 43,462 Consolidated revenue $ 209,243 $ 304,404 $ 418,716 $ 594,600 Net revenues by segment: Direct Lending $ 103,261 $ 157,667 $ 224,265 $ 338,737 Canada POS Lending 26,384 17,191 51,921 28,786 Consolidated net revenue $ 129,645 $ 174,858 $ 276,186 $ 367,523 Segment (loss) before income taxes: Direct Lending $ (50,917) $ (21,596) $ (82,549) $ (8,619) Canada POS Lending (6,119) (11,474) (13,255) (22,009) Consolidated (loss) before income taxes $ (57,036) $ (33,070) $ (95,804) $ (30,628) Expenditures for long-lived assets by segment: Direct Lending $ 5,257 $ 4,670 $ 9,114 $ 11,985 Canada POS Lending 6,556 6,040 12,726 10,264 Consolidated expenditures for long-lived assets $ 11,813 $ 10,710 $ 21,840 $ 22,249 (1) For revenue by product, see Note 2, "Loans Receivable and Revenue." The following table presents the proportion of gross loans receivable by segment (in thousands): June 30, December 31, Direct Lending $ 1,227,615 $ 1,254,395 Canada POS Lending 912,250 833,438 Total gross loans receivable $ 2,139,865 $ 2,087,833 The following table presents total revenues by geographic region: Three Months Ended Six Months Ended 2023 2022 2023 2022 U.S. $ 89,400 $ 205,711 $ 181,825 $ 404,110 Canada 119,843 98,693 236,891 190,490 Total revenue $ 209,243 $ 304,404 $ 418,716 $ 594,600 The following table presents the proportion of gross loans receivable by geographic region: June 30, December 31, U.S. $ 718,586 $ 773,380 Canada 1,421,279 1,314,453 Total gross loans receivable $ 2,139,865 $ 2,087,833 |
Summary of Long-lived Assets by Geographic Region | The following table presents the Company's net long-lived assets, comprised of property and equipment, by geographic region. These amounts are aggregated on a legal entity basis and do not necessarily reflect where the asset is physically located (in thousands): June 30, December 31, U.S. $ 11,430 $ 29,232 Canada 16,988 2,725 Total net long-lived assets $ 28,418 $ 31,957 |
ACQUISITIONS AND DIVESTITURE (T
ACQUISITIONS AND DIVESTITURE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Assets Acquired and Liabilities Assumed | The following table presents the preliminary purchase price allocation recorded in the Company’s unaudited Condensed Consolidated Balance Sheet as of the date of acquisition (in thousands): 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. |
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 |
Schedule of Assets and Liabilities Held-for-Sale | The following table presents the amounts attributable to each category recorded in the Company’s unaudited Condensed Consolidated Balance Sheet as of the date of divestiture of the Legacy U.S. Direct Lending Business, as adjusted (in thousands): Amounts divested of on July 8, 2022 Subsequent adjustments Amounts divested of on July 8, 2022 (as adjusted) Assets Cash, cash equivalents and restricted cash $ 21,292 $ — $ 21,292 Loans receivable 162,147 — 162,147 Right of use asset 39,326 — 39,326 Goodwill 91,131 — 91,131 Other assets (1) 30,690 (2,027) 28,663 Total assets $ 344,586 $ (2,027) $ 342,559 Liabilities Accounts payable and accrued liabilities $ (8,947) $ — $ (8,947) Right of use liability (43,433) — (43,433) Liability for losses on CSO lender-owned consumer loans (5,628) — (5,628) Other long term liabilities (2) (5,815) — (5,815) Total liabilities $ (63,823) $ — $ (63,823) Net assets sold $ 280,763 $ 280,763 Total proceeds 349,207 (2,027) 347,180 Total pretax gain on sale of business $ 68,444 $ 66,417 (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 |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Costs | The following table shows the total restructuring costs incurred during the six months ended June 30, 2023, (in thousands): Six months ended June 30, 2023 Employee Termination Benefits Lease Exit Costs Total Restructuring Costs Salaries and Benefits $ 1,517 $ — $ 1,517 Other Operating Expense 958 7,481 8,439 Total $ 2,475 $ 7,481 $ 9,956 |
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 unaudited Condensed Consolidated Balance Sheets, for restructuring-related costs as of June 30, 2023: Accrued restructuring costs as of December 31, 2022 $ 4,746 Restructuring costs incurred during the three months ended March 31, 2023 9,956 Amount paid during the three months ended March 31, 2023 (4,641) Accrued restructuring costs as of March 31, 2023 $ 10,061 Restructuring costs incurred during the three months ended June 30, 2023 — Amount paid during the three months ended June 30, 2023 (2,904) Accrued restructuring costs as of June 30, 2023 $ 7,157 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jan. 01, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Mar. 31, 2022 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative reduction to retained earnings | $ 227,900 | $ 227,900 | $ (4,268) | ||||
Allowance for credit losses | 272,615 | 272,615 | 122,028 | ||||
Provision (benefit) for income taxes | 2,291 | $ (6,990) | 22,994 | $ (5,884) | |||
Loans receivable 91-180 days past due | 2,139,865 | 2,139,865 | $ 2,087,833 | ||||
Total revenue | 209,243 | 304,404 | 418,716 | 594,600 | |||
Allowance for credit loss, percent of amortized cost basis | 5.80% | 12.60% | |||||
Interest and fees revenue | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Total revenue | 178,986 | 278,331 | 358,423 | 543,287 | |||
Canada | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Loans receivable 91-180 days past due | 1,421,279 | 1,421,279 | $ 1,314,453 | ||||
Direct Lending | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Loans receivable 91-180 days past due | 1,227,615 | 1,227,615 | 1,254,395 | ||||
Consumer Portfolio Segment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit losses | 272,615 | 272,615 | 122,028 | $ 259,959 | |||
Loans receivable 91-180 days past due | 2,139,865 | 2,139,865 | 2,087,833 | ||||
Charge-offs | 87,644 | 165,436 | |||||
Consumer Portfolio Segment | Direct Lending | Canada | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Charge-offs | 26,900 | 36,700 | |||||
Consumer Portfolio Segment | Direct Lending | Canada | Pro forma | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Charge-offs | 28,200 | 57,500 | |||||
91 + days past-due | Consumer Portfolio Segment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Loans receivable 91-180 days past due | 68,702 | 68,702 | 54,862 | ||||
Financial Asset Aging, 91-180 Days Past Due | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Loans receivable 91-180 days past due | 20,900 | $ 0 | $ 20,900 | 0 | |||
Financial Asset Aging, 91-180 Days Past Due | Direct Lending | Canada | Interest and fees revenue | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Total revenue | 300 | $ 2,500 | |||||
Cumulative Effect, Period of Adoption, Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative reduction to retained earnings | $ 113,000 | ||||||
Allowance for credit losses | 135,200 | ||||||
Provision (benefit) for income taxes | 22,200 | $ 13,000 | |||||
Cumulative Effect, Period of Adoption, Adjustment | Pro forma | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative reduction to retained earnings | 100,000 | ||||||
Allowance for credit losses | 135,200 | ||||||
Provision (benefit) for income taxes | $ 35,200 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Consumer Portfolio Segment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit losses | $ 135,212 |
LOANS RECEIVABLE AND REVENUE -
LOANS RECEIVABLE AND REVENUE - Revenue by Product (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue from External Customer [Line Items] | ||||
Total revenue | $ 209,243 | $ 304,404 | $ 418,716 | $ 594,600 |
Consumer Portfolio Segment | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 178,986 | 278,331 | 358,423 | 543,287 |
Consumer Portfolio Segment | Revolving LOC | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 86,703 | 96,583 | 170,928 | 187,606 |
Consumer Portfolio Segment | Installment | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 92,283 | 181,748 | 187,495 | 355,681 |
Unallocated Financing Receivables | Insurance and other income | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | $ 30,257 | $ 26,073 | $ 60,293 | $ 51,313 |
LOANS RECEIVABLE AND REVENUE _2
LOANS RECEIVABLE AND REVENUE - Delinquent Loans - Aging Analysis (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | $ 2,139,865 | $ 2,087,833 | |
Less: allowance for credit losses | (272,615) | (122,028) | |
Loans receivable, net | 1,867,250 | 1,965,805 | |
Consumer Portfolio Segment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | 2,139,865 | 2,087,833 | |
Less: allowance for credit losses | (272,615) | (122,028) | $ (259,959) |
Loans receivable, net | 1,867,250 | 1,965,805 | |
Consumer Portfolio Segment | Delinquent loans receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | 138,093 | 120,352 | |
Consumer Portfolio Segment | 1-30 days past-due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | 111,357 | 123,665 | |
Consumer Portfolio Segment | 31-60 days past-due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | 40,958 | 39,157 | |
Consumer Portfolio Segment | 61-90 days past-due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | 28,433 | 26,333 | |
Consumer Portfolio Segment | 91 + days past-due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | 68,702 | 54,862 | |
Consumer Portfolio Segment | Current loans receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | 1,890,415 | 1,843,816 | |
Consumer Portfolio Segment | Revolving LOC | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | 1,385,152 | 1,284,515 | |
Less: allowance for credit losses | (187,973) | (78,815) | $ (175,101) |
Loans receivable, net | 1,197,179 | 1,205,700 | |
Consumer Portfolio Segment | Revolving LOC | Delinquent loans receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | 77,015 | 43,005 | |
Consumer Portfolio Segment | Revolving LOC | 1-30 days past-due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | 51,799 | 46,956 | |
Consumer Portfolio Segment | Revolving LOC | 31-60 days past-due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | 23,159 | 17,677 | |
Consumer Portfolio Segment | Revolving LOC | 61-90 days past-due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | 15,969 | 12,190 | |
Consumer Portfolio Segment | Revolving LOC | 91 + days past-due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | 37,887 | 13,138 | |
Consumer Portfolio Segment | Revolving LOC | Current loans receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | 1,256,338 | 1,194,554 | |
Consumer Portfolio Segment | Installment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | 754,713 | 803,318 | |
Less: allowance for credit losses | (84,642) | (43,213) | |
Loans receivable, net | 670,071 | 760,105 | |
Consumer Portfolio Segment | Installment | Delinquent loans receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | 61,078 | 77,347 | |
Consumer Portfolio Segment | Installment | 1-30 days past-due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | 59,558 | 76,709 | |
Consumer Portfolio Segment | Installment | 31-60 days past-due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | 21,480 | ||
Consumer Portfolio Segment | Installment | 61-90 days past-due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | 14,143 | ||
Consumer Portfolio Segment | Installment | 91 + days past-due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | 41,724 | ||
Consumer Portfolio Segment | Installment | Current loans receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans receivable | $ 634,077 | $ 649,262 |
LOANS RECEIVABLE AND REVENUE _3
LOANS RECEIVABLE AND REVENUE - Allowance For Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Allowance for credit losses: | ||||
Allowance for credit losses, beginning of period | $ 122,028 | |||
Allowance for credit losses, end of period | $ 272,615 | 272,615 | ||
Allowance for credit losses: | ||||
Provision for losses | 79,598 | $ 129,546 | 142,530 | $ 227,077 |
Consumer Portfolio Segment | ||||
Allowance for credit losses: | ||||
Allowance for credit losses, beginning of period | 259,959 | 122,028 | ||
Charge-offs | (87,644) | (165,436) | ||
Recoveries | 17,892 | 34,968 | ||
Net charge-offs | (69,752) | (130,468) | ||
Provision for losses | 79,598 | 142,530 | ||
Effect of foreign currency translation | 2,810 | 3,313 | ||
Allowance for credit losses, end of period | 272,615 | 272,615 | ||
Allowance for credit losses: | ||||
Allowance for credit losses, balance, beginning of period | 99,558 | 87,560 | ||
Charge-offs | (114,917) | (218,326) | ||
Recoveries | 37,064 | 76,545 | ||
Net charge-offs | (77,853) | (141,781) | ||
Provision for losses | 101,235 | 177,018 | ||
Effect of foreign currency translation | (2,755) | (2,612) | ||
Allowance for credit losses, balance, end of period | 120,185 | 120,185 | ||
Liability for losses on CSO lender-owned consumer loans: | ||||
Liability for losses on CSO lender-owned consumer loans, balance, beginning of period | 7,166 | 6,908 | ||
Decrease in liability | 917 | 1,175 | ||
Liability for losses on CSO lender-owned consumer loans, balance, end of period | 8,083 | 8,083 | ||
Consumer Portfolio Segment | Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for credit losses: | ||||
Allowance for credit losses, beginning of period | 135,212 | |||
Consumer Portfolio Segment | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Allowance for credit losses: | ||||
Allowance for credit losses, beginning of period | 257,240 | |||
Consumer Portfolio Segment | Revolving LOC | ||||
Allowance for credit losses: | ||||
Allowance for credit losses, beginning of period | 175,101 | 78,815 | ||
Charge-offs | (40,600) | (64,872) | ||
Recoveries | 7,814 | 14,133 | ||
Net charge-offs | (32,786) | (50,739) | ||
Provision for losses | 42,932 | 73,039 | ||
Effect of foreign currency translation | 2,726 | 3,212 | ||
Allowance for credit losses, end of period | 187,973 | 187,973 | ||
Allowance for credit losses: | ||||
Allowance for credit losses, balance, beginning of period | 71,325 | 68,140 | ||
Charge-offs | (42,706) | (85,093) | ||
Recoveries | 8,761 | 16,776 | ||
Net charge-offs | (33,945) | (68,317) | ||
Provision for losses | 40,435 | 77,882 | ||
Effect of foreign currency translation | (2,687) | (2,577) | ||
Allowance for credit losses, balance, end of period | 75,128 | 75,128 | ||
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 | ||
Liability for losses on CSO lender-owned consumer loans, balance, end of period | 0 | 0 | ||
Consumer Portfolio Segment | Revolving LOC | Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for credit losses: | ||||
Allowance for credit losses, beginning of period | 83,646 | |||
Consumer Portfolio Segment | Revolving LOC | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Allowance for credit losses: | ||||
Allowance for credit losses, beginning of period | 162,461 | |||
Consumer Portfolio Segment | Installment | ||||
Allowance for credit losses: | ||||
Allowance for credit losses, beginning of period | 84,858 | 43,213 | ||
Charge-offs | (45,400) | (96,920) | ||
Recoveries | 9,929 | 20,371 | ||
Net charge-offs | (35,471) | (76,549) | ||
Provision for losses | 35,171 | 66,311 | ||
Effect of foreign currency translation | 84 | 101 | ||
Allowance for credit losses, end of period | 84,642 | 84,642 | ||
Allowance for credit losses: | ||||
Allowance for credit losses, balance, beginning of period | 26,843 | 19,420 | ||
Charge-offs | (67,713) | (126,922) | ||
Recoveries | 27,823 | 58,736 | ||
Net charge-offs | (39,890) | (68,186) | ||
Provision for losses | 58,172 | 93,858 | ||
Effect of foreign currency translation | (68) | (35) | ||
Allowance for credit losses, balance, end of period | 45,057 | 45,057 | ||
Liability for losses on CSO lender-owned consumer loans: | ||||
Liability for losses on CSO lender-owned consumer loans, balance, beginning of period | 7,166 | 6,908 | ||
Decrease in liability | 917 | 1,175 | ||
Liability for losses on CSO lender-owned consumer loans, balance, end of period | 8,083 | 8,083 | ||
Consumer Portfolio Segment | Installment | Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for credit losses: | ||||
Allowance for credit losses, beginning of period | 51,566 | |||
Consumer Portfolio Segment | Installment | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Allowance for credit losses: | ||||
Allowance for credit losses, beginning of period | 94,779 | |||
Consumer Portfolio Segment | Other | ||||
Allowance for credit losses: | ||||
Allowance for credit losses, beginning of period | 0 | 0 | ||
Charge-offs | (1,644) | (3,644) | ||
Recoveries | 149 | 464 | ||
Net charge-offs | (1,495) | (3,180) | ||
Provision for losses | 1,495 | 3,180 | ||
Effect of foreign currency translation | 0 | 0 | ||
Allowance for credit losses, end of period | $ 0 | 0 | ||
Allowance for credit losses: | ||||
Allowance for credit losses, balance, beginning of period | 1,390 | 0 | ||
Charge-offs | (4,498) | (6,311) | ||
Recoveries | 480 | 1,033 | ||
Net charge-offs | (4,018) | (5,278) | ||
Provision for losses | 2,628 | 5,278 | ||
Effect of foreign currency translation | 0 | 0 | ||
Allowance for credit losses, balance, end of period | 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 | ||
Liability for losses on CSO lender-owned consumer loans, balance, end of period | $ 0 | $ 0 | ||
Consumer Portfolio Segment | Other | Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for credit losses: | ||||
Allowance for credit losses, beginning of period | 0 | |||
Consumer Portfolio Segment | Other | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Allowance for credit losses: | ||||
Allowance for credit losses, beginning of period | $ 0 |
LOANS RECEIVABLE AND REVENUE _4
LOANS RECEIVABLE AND REVENUE - Schedule of Credit Quality Indicators (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans receivable | $ 2,139,865 | $ 2,139,865 | $ 2,087,833 |
Consumer Portfolio Segment | |||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans receivable | 2,139,865 | 2,139,865 | 2,087,833 |
Gross charge offs | |||
Gross charge offs | (87,644) | (165,436) | |
Gross recoveries | |||
Gross recoveries | 17,892 | 34,968 | |
Net charge-offs | |||
Net charge-offs | (69,752) | (130,468) | |
Consumer Portfolio Segment | Current | |||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans receivable | 1,890,415 | 1,890,415 | 1,843,816 |
Consumer Portfolio Segment | 1-30 days past-due | |||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans receivable | 111,357 | 111,357 | 123,665 |
Consumer Portfolio Segment | 31-60 days past-due | |||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans receivable | 40,958 | 40,958 | 39,157 |
Consumer Portfolio Segment | 61-90 days past-due | |||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans receivable | 28,433 | 28,433 | 26,333 |
Consumer Portfolio Segment | 91 + days past-due | |||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans receivable | 68,702 | 68,702 | 54,862 |
Consumer Portfolio Segment | Delinquent loans receivable | |||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans receivable | 138,093 | 138,093 | 120,352 |
Consumer Portfolio Segment | Revolving LOC | |||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans receivable | 1,385,152 | 1,385,152 | 1,284,515 |
Gross charge offs | |||
Gross charge offs | (40,600) | (64,872) | |
Gross recoveries | |||
Gross recoveries | 7,814 | 14,133 | |
Net charge-offs | |||
Net charge-offs | (32,786) | (50,739) | |
Consumer Portfolio Segment | Revolving LOC | Current | |||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans receivable | 1,256,338 | 1,256,338 | 1,194,554 |
Consumer Portfolio Segment | Revolving LOC | 1-30 days past-due | |||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans receivable | 51,799 | 51,799 | 46,956 |
Consumer Portfolio Segment | Revolving LOC | 31-60 days past-due | |||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans receivable | 23,159 | 23,159 | 17,677 |
Consumer Portfolio Segment | Revolving LOC | 61-90 days past-due | |||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans receivable | 15,969 | 15,969 | 12,190 |
Consumer Portfolio Segment | Revolving LOC | 91 + days past-due | |||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans receivable | 37,887 | 37,887 | 13,138 |
Consumer Portfolio Segment | Revolving LOC | Delinquent loans receivable | |||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans receivable | 77,015 | 77,015 | $ 43,005 |
Consumer Portfolio Segment | Installment | |||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 376,688 | 376,688 | |
2022 | 300,692 | 300,692 | |
2021 | 69,572 | 69,572 | |
2020 | 6,550 | 6,550 | |
2019 | 612 | 612 | |
Prior | 599 | 599 | |
Total loans receivable | 754,713 | 754,713 | |
Gross charge offs | |||
2023 | (10,090) | (17,108) | |
2022 | (30,088) | (63,625) | |
2021 | (4,508) | (14,320) | |
2020 | (373) | (1,180) | |
2019 | (38) | (116) | |
Prior | (303) | (571) | |
Gross charge offs | (45,400) | (96,920) | |
Gross recoveries | |||
2023 | 5,607 | 9,069 | |
2022 | 1,161 | 4,549 | |
2021 | 1,055 | 2,210 | |
2020 | 457 | 1,052 | |
2019 | 458 | 1,019 | |
Prior | 1,191 | 2,472 | |
Gross recoveries | 9,929 | 20,371 | |
Net charge-offs | |||
2023 | (4,483) | (8,039) | |
2022 | (28,927) | (59,076) | |
2021 | (3,453) | (12,110) | |
2020 | 84 | (128) | |
2019 | 420 | 903 | |
Prior | 888 | 1,901 | |
Net charge-offs | (35,471) | (76,549) | |
Consumer Portfolio Segment | Installment | Current | |||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 339,302 | 339,302 | |
2022 | 237,504 | 237,504 | |
2021 | 51,770 | 51,770 | |
2020 | 4,692 | 4,692 | |
2019 | 448 | 448 | |
Prior | 361 | 361 | |
Total loans receivable | 634,077 | 634,077 | |
Consumer Portfolio Segment | Installment | 1-30 days past-due | |||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 23,445 | 23,445 | |
2022 | 26,211 | 26,211 | |
2021 | 8,724 | 8,724 | |
2020 | 1,087 | 1,087 | |
2019 | 82 | 82 | |
Prior | 9 | 9 | |
Total loans receivable | 59,558 | 59,558 | |
Consumer Portfolio Segment | Installment | 31-60 days past-due | |||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 6,223 | 6,223 | |
2022 | 8,683 | 8,683 | |
2021 | 2,587 | 2,587 | |
2020 | 270 | 270 | |
2019 | 22 | 22 | |
Prior | 14 | 14 | |
Total loans receivable | 17,799 | 17,799 | |
Consumer Portfolio Segment | Installment | 61-90 days past-due | |||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 3,754 | 3,754 | |
2022 | 6,761 | 6,761 | |
2021 | 1,807 | 1,807 | |
2020 | 121 | 121 | |
2019 | 14 | 14 | |
Prior | 7 | 7 | |
Total loans receivable | 12,464 | 12,464 | |
Consumer Portfolio Segment | Installment | 91 + days past-due | |||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 3,964 | 3,964 | |
2022 | 21,533 | 21,533 | |
2021 | 4,684 | 4,684 | |
2020 | 380 | 380 | |
2019 | 46 | 46 | |
Prior | 208 | 208 | |
Total loans receivable | 30,815 | 30,815 | |
Consumer Portfolio Segment | Installment | Delinquent loans receivable | |||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 13,941 | 13,941 | |
2022 | 36,977 | 36,977 | |
2021 | 9,078 | 9,078 | |
2020 | 771 | 771 | |
2019 | 82 | 82 | |
Prior | 229 | 229 | |
Total loans receivable | 61,078 | 61,078 | |
Consumer Portfolio Segment | Installment and Revolving LOC | |||
Gross charge offs | |||
Gross charge offs | (86,000) | (161,792) | |
Gross recoveries | |||
Gross recoveries | 17,743 | 34,504 | |
Net charge-offs | |||
Net charge-offs | $ (68,257) | $ (127,288) |
LOANS RECEIVABLE AND REVENUE _5
LOANS RECEIVABLE AND REVENUE - Narrative (Details) - Consumer Portfolio Segment - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2022 | |
Credit Services Organization Programs | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
TDRs that were charged off | $ 3.1 | $ 6.7 | |
Installment | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Loans classified as nonaccrual | $ 54.6 | ||
Revolving LOC | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Loans classified as nonaccrual | $ 5.3 |
LOANS RECEIVABLE AND REVENUE _6
LOANS RECEIVABLE AND REVENUE - Delinquent and Non-Accrual Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Financing Receivable, Past Due [Line Items] | |||||
Total loans receivable | $ 2,139,865 | $ 2,139,865 | $ 2,087,833 | ||
Gross interest income | 209,243 | $ 304,404 | 418,716 | $ 594,600 | |
Interest and fees revenue | |||||
Financing Receivable, Past Due [Line Items] | |||||
Gross interest income | 178,986 | $ 278,331 | 358,423 | $ 543,287 | |
Consumer Portfolio Segment | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans receivable | 2,139,865 | 2,139,865 | 2,087,833 | ||
Consumer Portfolio Segment | 31-60 days past-due | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans receivable | $ 40,958 | $ 40,958 | 39,157 | ||
Percentage of total loan receivables, past due | 1.90% | 1.90% | |||
Consumer Portfolio Segment | 61-90 days past-due | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans receivable | $ 28,433 | $ 28,433 | 26,333 | ||
Percentage of total loan receivables, past due | 1.30% | 1.30% | |||
Consumer Portfolio Segment | 91 + days past-due | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans receivable | $ 68,702 | $ 68,702 | 54,862 | ||
Percentage of total loan receivables, past due | 3.20% | 3.20% | |||
Consumer Portfolio Segment | Total past due | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans receivable | $ 138,093 | $ 138,093 | 120,352 | ||
90 or more days delinquent and accruing | 25,105 | 25,105 | |||
Total non-accruing | $ 49,851 | $ 49,851 | |||
Percentage of total loan receivables, past due | 6.50% | 6.50% | |||
Percentage of total loan receivable, 90 days of more delinquent and accruing | 1.20% | 1.20% | |||
Percentage of total loan receivables, non accruing | 2.30% | 2.30% | |||
Consumer Portfolio Segment | Total past due | Interest and fees revenue | |||||
Financing Receivable, Past Due [Line Items] | |||||
Gross interest income | $ 900 | $ 5,700 | |||
Consumer Portfolio Segment | Revolving LOC | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans receivable | 1,385,152 | 1,385,152 | 1,284,515 | ||
Total non-accruing | 5,300 | ||||
Consumer Portfolio Segment | Revolving LOC | 31-60 days past-due | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans receivable | 23,159 | 23,159 | 17,677 | ||
Consumer Portfolio Segment | Revolving LOC | 61-90 days past-due | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans receivable | 15,969 | 15,969 | 12,190 | ||
Consumer Portfolio Segment | Revolving LOC | 91 + days past-due | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans receivable | 37,887 | 37,887 | 13,138 | ||
Consumer Portfolio Segment | Revolving LOC | Total past due | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans receivable | 77,015 | 77,015 | 43,005 | ||
90 or more days delinquent and accruing | 22,551 | 22,551 | |||
Total non-accruing | 17,805 | 17,805 | |||
Consumer Portfolio Segment | Installment | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total non-accruing | $ 54,600 | ||||
Consumer Portfolio Segment | Installment | 31-60 days past-due | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans receivable | 17,799 | 17,799 | |||
Consumer Portfolio Segment | Installment | 61-90 days past-due | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans receivable | 12,464 | 12,464 | |||
Consumer Portfolio Segment | Installment | 91 + days past-due | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans receivable | 30,815 | 30,815 | |||
Consumer Portfolio Segment | Installment | Total past due | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total loans receivable | 61,078 | 61,078 | |||
90 or more days delinquent and accruing | 2,554 | 2,554 | |||
Total non-accruing | $ 32,046 | $ 32,046 |
LOANS RECEIVABLE AND REVENUE _7
LOANS RECEIVABLE AND REVENUE - Loan Modifications (Details) - Consumer Portfolio Segment $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) Rate | Jun. 30, 2023 USD ($) | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amount | $ 761 | $ 1,353 | ||
Percentage of total loan receivables | 0.10% | 0.30% | ||
Total delinquent modified loans | 7,093 | 7,093 | $ 7,093 | $ 7,093 |
Current | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Percentage of total loan receivables | 1.10% | |||
Total delinquent modified loans | 22,888 | 22,888 | 22,888 | $ 22,888 |
1-30 days past-due | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Percentage of total loan receivables | 0.20% | |||
Total delinquent modified loans | 4,128 | 4,128 | 4,128 | $ 4,128 |
31-60 days past-due | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Percentage of total loan receivables | 0.10% | |||
Total delinquent modified loans | 2,135 | 2,135 | 2,135 | $ 2,135 |
61-90 days past-due | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Percentage of total loan receivables | 0.10% | |||
Total delinquent modified loans | 1,581 | 1,581 | 1,581 | $ 1,581 |
91 + days past-due | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Percentage of total loan receivables | 0.20% | |||
Total delinquent modified loans | 3,377 | 3,377 | 3,377 | $ 3,377 |
Revolving LOC | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total delinquent modified loans | 6,971 | 6,971 | $ 6,971 | $ 6,971 |
Revolving LOC | Principal / accrued interest forgiven | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amount | $ 760 | 1,307 | ||
Percentage of total loan receivables | Rate | 0.10% | |||
Revolving LOC | Weighted average interest rate reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amount | 23.23% | 23.23% | ||
Percentage of total loan receivables | ||||
Revolving LOC | Current | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total delinquent modified loans | $ 22,853 | 22,853 | $ 22,853 | $ 22,853 |
Revolving LOC | 1-30 days past-due | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total delinquent modified loans | 4,106 | 4,106 | 4,106 | 4,106 |
Revolving LOC | 31-60 days past-due | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total delinquent modified loans | 2,124 | 2,124 | 2,124 | 2,124 |
Revolving LOC | 61-90 days past-due | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total delinquent modified loans | 1,564 | 1,564 | 1,564 | 1,564 |
Revolving LOC | 91 + days past-due | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total delinquent modified loans | 3,283 | 3,283 | 3,283 | 3,283 |
Installment | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total delinquent modified loans | 122 | 122 | 122 | 122 |
Installment | Principal / accrued interest forgiven | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amount | 1 | 46 | ||
Installment | Current | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total delinquent modified loans | 35 | 35 | 35 | 35 |
Installment | 1-30 days past-due | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total delinquent modified loans | 22 | 22 | 22 | 22 |
Installment | 31-60 days past-due | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total delinquent modified loans | 11 | 11 | 11 | 11 |
Installment | 61-90 days past-due | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total delinquent modified loans | 17 | 17 | 17 | 17 |
Installment | 91 + days past-due | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total delinquent modified loans | $ 94 | $ 94 | $ 94 | $ 94 |
LOANS RECEIVABLE AND REVENUE _8
LOANS RECEIVABLE AND REVENUE - Payment Defaults (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 USD ($) contract | Jun. 30, 2023 USD ($) contract | |
Revolving LOC | Consumer Portfolio Segment | ||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||
Number of Accounts defaulted (charged-off) | contract | 169 | 1,949 |
Value of accounts defaulted (charged-off) | $ | $ 266 | $ 269 |
Installment | Consumer Portfolio Segment | ||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||
Number of Accounts defaulted (charged-off) | contract | 21 | 176 |
Value of accounts defaulted (charged-off) | $ | $ 192 | $ 247 |
Consumer Portfolio Segment | ||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||
Number of Accounts defaulted (charged-off) | contract | 190 | 2,125 |
Value of accounts defaulted (charged-off) | $ | $ 458 | $ 516 |
LOANS RECEIVABLE AND REVENUE _9
LOANS RECEIVABLE AND REVENUE - Troubled Debt Restructurings (Prior to 2023) (Details) - Consumer Portfolio Segment - Credit Services Organization Programs $ in Thousands | Jun. 30, 2022 USD ($) |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total TDR gross receivables | $ 18,900 |
Less: Impairment included in the allowance for credit losses | (4,777) |
Less: Additional allowance | (1,353) |
Outstanding TDR receivables, net of impairment | 12,770 |
Current | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total TDR gross receivables | 13,686 |
Total past due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total TDR gross receivables | $ 5,214 |
LOANS RECEIVABLE AND REVENUE_10
LOANS RECEIVABLE AND REVENUE - New Loans Modified and Classified as TDRs (Details) - Consumer Portfolio Segment - Credit Services Organization Programs - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Pre-modification TDR loans receivable | $ 4,390 | $ 7,254 |
Post-modification TDR loans receivable | 4,046 | 6,404 |
Total concessions included in gross charge-offs | $ 344 | $ 850 |
LOANS RECEIVABLE AND REVENUE_11
LOANS RECEIVABLE AND REVENUE - Outstanding TDR Loans Receivable and Interest Income (Details) - Consumer Portfolio Segment - Credit Services Organization Programs $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 USD ($) loan | Jun. 30, 2022 USD ($) loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Average outstanding TDR loans receivable | $ 17,773 | $ 17,397 |
Interest income recognized | $ 3,991 | $ 8,026 |
Number of TDR loans | loan | 2,773,000 | 6,197 |
VARIABLE INTEREST ENTITIES - Ca
VARIABLE INTEREST ENTITIES - Carrying Amounts of Consolidated VIE Assets and Liabilities (Details) $ in Thousands | Jun. 30, 2023 USD ($) facility | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) |
Variable Interest Entity [Line Items] | |||
Number of credit facilities held | facility | 6 | ||
Assets | |||
Restricted cash | $ 109,484 | $ 91,745 | $ 97,465 |
Loans receivable, net | 1,867,250 | 1,965,805 | |
Prepaid expenses and other | 44,518 | 53,057 | |
Deferred tax assets | 54,102 | 49,893 | |
Total Assets | 2,744,837 | 2,789,193 | |
Liabilities | |||
Accounts payable and accrued liabilities | 78,343 | 73,827 | |
Deferred revenue | 36,793 | 32,259 | |
Accrued interest | 39,306 | 38,460 | |
Debt | 2,772,872 | 2,607,314 | |
Total Liabilities | $ 3,013,210 | 2,843,327 | |
Variable Interest Entity | |||
Variable Interest Entity [Line Items] | |||
Number of credit facilities held | facility | 6 | ||
Assets | |||
Restricted cash | $ 75,298 | 52,277 | $ 54,728 |
Loans receivable, net | 1,792,229 | 1,855,824 | |
Prepaid expenses and other | 15,702 | 12,908 | |
Deferred tax assets | 22,082 | 17,027 | |
Total Assets | 1,905,311 | 1,938,036 | |
Liabilities | |||
Accounts payable and accrued liabilities | 11,338 | 13,571 | |
Deferred revenue | 28 | 31 | |
Accrued interest | 7,974 | 7,023 | |
Income Taxes Payable | 9,828 | 7,850 | |
Debt | 1,640,455 | 1,589,380 | |
Total Liabilities | $ 1,669,623 | $ 1,617,855 |
GOODWILL - Schedule of Goodwill
GOODWILL - Schedule of Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 276,269 |
Foreign currency translation | 800 |
Goodwill, ending balance | 277,069 |
Direct Lending | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 276,269 |
Foreign currency translation | 800 |
Goodwill, ending balance | 277,069 |
Canada POS Lending | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 0 |
Foreign currency translation | 0 |
Goodwill, ending balance | $ 0 |
GOODWILL - Narrative (Details)
GOODWILL - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | 18 Months Ended | |||||||
Mar. 31, 2023 USD ($) | Jul. 13, 2022 USD ($) | Jul. 08, 2022 USD ($) | Dec. 27, 2021 USD ($) | Jun. 30, 2023 USD ($) reportingUnit | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) reportingUnit | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2023 USD ($) | |
Goodwill [Line Items] | |||||||||||
Number of reporting units | reportingUnit | 1,000 | 3 | |||||||||
Goodwill | $ 277,069 | $ 276,269 | $ 277,069 | $ 276,269 | $ 277,069 | ||||||
Total proceeds | (2,027) | $ 0 | |||||||||
Gain on sale of business | 0 | $ 0 | (2,027) | $ 0 | |||||||
Discontinued Operations, Disposed of by Sale | U.S. Legacy Direct Lending Business | |||||||||||
Goodwill [Line Items] | |||||||||||
Total proceeds | $ 347,180 | $ 349,207 | |||||||||
Cash received at close of divestiture of business | 314,200 | ||||||||||
Gain on sale of business | $ 66,417 | 68,444 | 0 | (2,000) | 68,400 | ||||||
Goodwill written off | $ 91,100 | ||||||||||
Heights SPV | |||||||||||
Goodwill [Line Items] | |||||||||||
Measurement period adjustment | 3,500 | 11,800 | (11,825) | ||||||||
Goodwill | $ 253,857 | 265,682 | 265,700 | 265,682 | 265,700 | 265,682 | |||||
Consideration transferred in business acquisition | 360,000 | ||||||||||
Heights SPV | U.S. Direct Lending | |||||||||||
Goodwill [Line Items] | |||||||||||
Goodwill acquired during period | $ 253,900 | ||||||||||
First Heritage SPV | |||||||||||
Goodwill [Line Items] | |||||||||||
Goodwill acquired during period | $ 75,400 | ||||||||||
Goodwill | 75,365 | 75,400 | 75,400 | 75,400 | |||||||
Consideration transferred in business acquisition | $ 140,000 | ||||||||||
U.S. Direct Lending | |||||||||||
Goodwill [Line Items] | |||||||||||
Goodwill, Impairment Loss | 107,800 | ||||||||||
Canada POS Lending | |||||||||||
Goodwill [Line Items] | |||||||||||
Goodwill, Impairment Loss | 37,400 | ||||||||||
Goodwill | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of Assets and Liabilities Carried at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Mar. 31, 2021 |
Financial liabilities: | |||
Contingent consideration related to acquisition | $ 18,499 | $ 16,884 | $ 20,600 |
Fair Value, Measurements, Recurring | Reported Value Measurement | |||
Financial assets: | |||
Cash Surrender Value of Life Insurance | 5,931 | 7,591 | |
Derivative asset | 10,930 | 7,458 | |
Financial liabilities: | |||
Non-qualified deferred compensation plan | 4,372 | 5,149 | |
Contingent consideration related to acquisition | 18,499 | 16,884 | |
Fair Value, Measurements, Recurring | Estimated Fair Value | |||
Financial assets: | |||
Cash Surrender Value of Life Insurance | 5,931 | 7,591 | |
Derivative asset | 10,930 | 7,458 | |
Financial liabilities: | |||
Non-qualified deferred compensation plan | 4,372 | 5,149 | |
Contingent consideration related to acquisition | 18,499 | 16,884 | |
Fair Value, Measurements, Recurring | Estimated Fair Value | Level 1 | |||
Financial assets: | |||
Cash Surrender Value of Life Insurance | 5,931 | 7,591 | |
Derivative asset | 0 | 0 | |
Financial liabilities: | |||
Non-qualified deferred compensation plan | 4,372 | 5,149 | |
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 | |
Derivative asset | 10,930 | 7,458 | |
Financial liabilities: | |||
Non-qualified deferred compensation plan | 0 | 0 | |
Contingent consideration related to acquisition | 18,499 | 0 | |
Fair Value, Measurements, Recurring | Estimated Fair Value | Level 3 | |||
Financial assets: | |||
Cash Surrender Value of Life Insurance | 0 | 0 | |
Derivative asset | 0 | 0 | |
Financial liabilities: | |||
Non-qualified deferred compensation plan | 0 | 0 | |
Contingent consideration related to acquisition | $ 0 | $ 16,884 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2023 | May 15, 2023 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||
Contingent consideration related to acquisition | $ 18,499 | $ 16,884 | $ 20,600 | $ 18,499 | ||||||
Equity Method Investment | ||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||
Equity method loss | $ 2,134 | $ 3,413 | $ 1,932 | $ 2,309 | $ 1,328 | $ (1,584) | $ 5,500 | |||
Katapult | ||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||
Ownership percentage | 23.40% | 23.40% | ||||||||
Katapult | Current Lag Period | ||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||
Lag period | 3 months | |||||||||
Senior Notes | 1.0L 18.00% Senior Secured Term Loan | ||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||
Stated interest rate (as a percent) | 18% | 18% | 18% | 18% | ||||||
Total funding debt | $ 167,495 | $ 0 | $ 167,495 | $ 150,000 | ||||||
Senior Notes | 1.5L 7.50% Senior Secured Notes | ||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||
Stated interest rate (as a percent) | 7.50% | 7.50% | ||||||||
Total funding debt | $ 682,298 | 0 | $ 682,298 | |||||||
Senior Notes | 2.0L 7.50% Senior Secured Notes | ||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||
Stated interest rate (as a percent) | 7.50% | 7.50% | ||||||||
Total funding debt | $ 317,702 | $ 0 | $ 317,702 | |||||||
Flexiti | ||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||
Contingent consideration measurement period | 2 years | |||||||||
Contingent consideration, maximum amount | $ 32,800 | |||||||||
First payment to acquire business | $ 1,000 |
FAIR VALUE MEASUREMENTS - Sum_2
FAIR VALUE MEASUREMENTS - Summary of Assets and Liabilities Not Carried at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | May 15, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Jul. 31, 2021 |
Financial assets: | ||||||
Restricted cash | $ 109,484 | $ 91,745 | $ 97,465 | |||
1.0L 18.00% Senior Secured Term Loan | Senior Notes | ||||||
Financial liabilities: | ||||||
Stated interest rate (as a percent) | 18% | 18% | 18% | |||
1.5L 7.50% Senior Secured Notes | Senior Notes | ||||||
Financial liabilities: | ||||||
Stated interest rate (as a percent) | 7.50% | |||||
2.0L 7.50% Senior Secured Notes | Senior Notes | ||||||
Financial liabilities: | ||||||
Stated interest rate (as a percent) | 7.50% | |||||
7.5% Senior Secured Notes | Senior Notes | ||||||
Financial liabilities: | ||||||
Stated interest rate (as a percent) | 7.50% | 7.50% | 7.50% | 7.50% | ||
Fair Value, Measurements, Nonrecurring | Reported Value Measurement | ||||||
Financial assets: | ||||||
Cash and cash equivalents | $ 112,531 | $ 73,932 | ||||
Restricted cash | 109,484 | 91,745 | ||||
Loans receivable, net | 1,867,250 | 1,965,805 | ||||
Investment in Katapult | 18,368 | 23,915 | ||||
Fair Value, Measurements, Nonrecurring | Reported Value Measurement | 1.0L 18.00% Senior Secured Term Loan | Senior Notes | ||||||
Financial liabilities: | ||||||
Debt | 148,249 | |||||
Fair Value, Measurements, Nonrecurring | Reported Value Measurement | 1.5L 7.50% Senior Secured Notes | Senior Notes | ||||||
Financial liabilities: | ||||||
Debt | 671,496 | |||||
Fair Value, Measurements, Nonrecurring | Reported Value Measurement | 2.0L 7.50% Senior Secured Notes | Senior Notes | ||||||
Financial liabilities: | ||||||
Debt | 312,672 | |||||
Fair Value, Measurements, Nonrecurring | Reported Value Measurement | Heights SPV | ||||||
Financial liabilities: | ||||||
Debt | 380,439 | 393,181 | ||||
Fair Value, Measurements, Nonrecurring | Reported Value Measurement | First Heritage SPV | ||||||
Financial liabilities: | ||||||
Debt | 155,926 | 178,622 | ||||
Fair Value, Measurements, Nonrecurring | Reported Value Measurement | Flexiti SPV | ||||||
Financial liabilities: | ||||||
Debt | 389,725 | 339,651 | ||||
Fair Value, Measurements, Nonrecurring | Reported Value Measurement | Flexiti Securitization | ||||||
Financial liabilities: | ||||||
Debt | 394,975 | 385,054 | ||||
Fair Value, Measurements, Nonrecurring | Reported Value Measurement | Canada SPV | ||||||
Financial liabilities: | ||||||
Debt | 249,377 | 292,872 | ||||
Fair Value, Measurements, Nonrecurring | Reported Value Measurement | Canada SPV II | ||||||
Financial liabilities: | ||||||
Debt | 70,013 | |||||
Fair Value, Measurements, Nonrecurring | Reported Value Measurement | Senior Revolver | ||||||
Financial liabilities: | ||||||
Debt | 35,000 | |||||
Fair Value, Measurements, Nonrecurring | Reported Value Measurement | 7.5% Senior Secured Notes | Senior Notes | ||||||
Financial liabilities: | ||||||
Debt | 982,934 | |||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 112,531 | 73,932 | ||||
Restricted cash | 109,484 | 91,745 | ||||
Loans receivable, net | 1,867,250 | 1,965,805 | ||||
Investment in Katapult | 19,396 | 20,624 | ||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | 1.0L 18.00% Senior Secured Term Loan | Senior Notes | ||||||
Financial liabilities: | ||||||
Debt | 148,249 | |||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | 1.5L 7.50% Senior Secured Notes | Senior Notes | ||||||
Financial liabilities: | ||||||
Debt | 257,568 | |||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | 2.0L 7.50% Senior Secured Notes | Senior Notes | ||||||
Financial liabilities: | ||||||
Debt | 70,688 | |||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Heights SPV | ||||||
Financial liabilities: | ||||||
Debt | 387,185 | 393,181 | ||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Flexiti SPV | ||||||
Financial liabilities: | ||||||
Debt | 394,018 | 343,565 | ||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Flexiti Securitization | ||||||
Financial liabilities: | ||||||
Debt | 398,743 | 387,759 | ||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Canada SPV | ||||||
Financial liabilities: | ||||||
Debt | 251,884 | 294,594 | ||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Canada SPV II | ||||||
Financial liabilities: | ||||||
Debt | 72,210 | |||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Senior Revolver | ||||||
Financial liabilities: | ||||||
Debt | 35,000 | |||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | 7.5% Senior Secured Notes | Senior Notes | ||||||
Financial liabilities: | ||||||
Debt | 466,500 | |||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 1 | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 112,531 | 73,932 | ||||
Restricted cash | 109,484 | 91,745 | ||||
Loans receivable, net | 0 | 0 | ||||
Investment in Katapult | 19,396 | 20,624 | ||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 1 | 1.0L 18.00% Senior Secured Term Loan | Senior Notes | ||||||
Financial liabilities: | ||||||
Debt | 0 | |||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 1 | 1.5L 7.50% Senior Secured Notes | Senior Notes | ||||||
Financial liabilities: | ||||||
Debt | 0 | |||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 1 | 2.0L 7.50% Senior Secured Notes | Senior Notes | ||||||
Financial liabilities: | ||||||
Debt | 0 | |||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 1 | Heights SPV | ||||||
Financial liabilities: | ||||||
Debt | 0 | 0 | ||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 1 | First Heritage 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 | Canada SPV | ||||||
Financial liabilities: | ||||||
Debt | 0 | 0 | ||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 1 | Canada SPV II | ||||||
Financial liabilities: | ||||||
Debt | 0 | |||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 1 | Senior Revolver | ||||||
Financial liabilities: | ||||||
Debt | 0 | |||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 1 | 7.5% Senior Secured Notes | Senior Notes | ||||||
Financial liabilities: | ||||||
Debt | 0 | |||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 2 | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Restricted cash | 0 | 0 | ||||
Loans receivable, net | 0 | 0 | ||||
Investment in Katapult | 0 | 0 | ||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 2 | 1.0L 18.00% Senior Secured Term Loan | Senior Notes | ||||||
Financial liabilities: | ||||||
Debt | 0 | |||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 2 | 1.5L 7.50% Senior Secured Notes | Senior Notes | ||||||
Financial liabilities: | ||||||
Debt | 257,568 | |||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 2 | 2.0L 7.50% Senior Secured Notes | Senior Notes | ||||||
Financial liabilities: | ||||||
Debt | 70,688 | |||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 2 | Heights SPV | ||||||
Financial liabilities: | ||||||
Debt | 0 | 0 | ||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 2 | First Heritage 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 | Canada SPV | ||||||
Financial liabilities: | ||||||
Debt | 0 | 0 | ||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 2 | Canada SPV II | ||||||
Financial liabilities: | ||||||
Debt | 0 | |||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 2 | Senior Revolver | ||||||
Financial liabilities: | ||||||
Debt | 0 | |||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 2 | 7.5% Senior Secured Notes | Senior Notes | ||||||
Financial liabilities: | ||||||
Debt | 466,500 | |||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 3 | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Restricted cash | 0 | 0 | ||||
Loans receivable, net | 1,867,250 | 1,965,805 | ||||
Investment in Katapult | 0 | 0 | ||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 3 | 1.0L 18.00% Senior Secured Term Loan | Senior Notes | ||||||
Financial liabilities: | ||||||
Debt | 148,249 | |||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 3 | 1.5L 7.50% Senior Secured Notes | Senior Notes | ||||||
Financial liabilities: | ||||||
Debt | 0 | |||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 3 | 2.0L 7.50% Senior Secured Notes | Senior Notes | ||||||
Financial liabilities: | ||||||
Debt | 0 | |||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 3 | Heights SPV | ||||||
Financial liabilities: | ||||||
Debt | 387,185 | 393,181 | ||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 3 | First Heritage SPV | ||||||
Financial liabilities: | ||||||
Debt | 159,473 | 182,751 | ||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 3 | Flexiti SPV | ||||||
Financial liabilities: | ||||||
Debt | 394,018 | 343,565 | ||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 3 | Flexiti Securitization | ||||||
Financial liabilities: | ||||||
Debt | 398,743 | 387,759 | ||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 3 | Canada SPV | ||||||
Financial liabilities: | ||||||
Debt | 251,884 | 294,594 | ||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 3 | Canada SPV II | ||||||
Financial liabilities: | ||||||
Debt | $ 72,210 | |||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 3 | Senior Revolver | ||||||
Financial liabilities: | ||||||
Debt | 35,000 | |||||
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Level 3 | 7.5% Senior Secured Notes | Senior Notes | ||||||
Financial liabilities: | ||||||
Debt | $ 0 |
FAIR VALUE MEASUREMENTS - Inves
FAIR VALUE MEASUREMENTS - Investment in Katapult (Details) - Equity Method Investment - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||
Beginning balance | $ 20,502 | $ 23,915 | $ 25,847 | $ 28,156 | $ 29,484 | $ 27,900 | $ 23,915 |
Equity method income (loss) | (2,134) | (3,413) | (1,932) | (2,309) | (1,328) | 1,584 | (5,500) |
Ending balance | $ 18,368 | $ 20,502 | $ 23,915 | $ 25,847 | $ 28,156 | $ 29,484 | $ 18,368 |
DEBT - Schedule of Long Term De
DEBT - Schedule of Long Term Debt (Details) $ in Thousands, $ in Thousands | 6 Months Ended | |||||||||||
May 15, 2023 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2023 CAD ($) | May 15, 2023 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CAD ($) | Oct. 11, 2022 CAD ($) | Sep. 29, 2022 CAD ($) | Sep. 28, 2022 CAD ($) | Jul. 07, 2022 CAD ($) | Dec. 31, 2021 CAD ($) | Jul. 31, 2021 | |
Debt Instrument [Line Items] | ||||||||||||
Less: debt issuance costs | $ (58,136) | $ (37,113) | ||||||||||
Total Debt | $ 2,772,872 | $ 2,607,314 | ||||||||||
Exchange rate | 0.7573 | 0.7573 | 0.7365 | 0.7365 | ||||||||
Heights SPV | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread (as percent) | 4.71% | |||||||||||
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 | 8.41% | 8.41% | ||||||||||
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% | |||||||||||
Canada SPV II | Canadian Dollar Offered Rate (CDOR) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread (as percent) | 8% | |||||||||||
Senior Revolver | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread (as percent) | 5% | |||||||||||
Revolving Credit Facility | Flexiti SPV | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Borrowing Capacity | $ 425,000 | $ 535,000 | $ 500,000 | |||||||||
Revolving Credit Facility | Flexiti Securitization | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Borrowing Capacity | $ 526,500 | |||||||||||
Senior Notes | 1.0L 18.00% Senior Secured Term Loan | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Stated interest rate (as a percent) | 18% | 18% | 18% | 18% | 18% | 18% | ||||||
Total funding debt | $ 150,000 | $ 167,495 | $ 0 | |||||||||
Senior Notes | 1.5L 7.50% Senior Secured Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Stated interest rate (as a percent) | 7.50% | 7.50% | ||||||||||
Total funding debt | $ 682,298 | 0 | ||||||||||
Senior Notes | 2.0L 7.50% Senior Secured Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Stated interest rate (as a percent) | 7.50% | 7.50% | ||||||||||
Total funding debt | $ 317,702 | $ 0 | ||||||||||
Senior Notes | 7.5% Senior Secured Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Stated interest rate (as a percent) | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% | ||||||
Total funding debt | $ 0 | $ 1,000,000 | ||||||||||
Corporate Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total funding debt | 1,167,495 | 1,000,000 | ||||||||||
Line of Credit | Revolving Credit Facility | 1.0L 18.00% Senior Secured Term Loan | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Borrowing Capacity | 150,000 | |||||||||||
Line of Credit | Revolving Credit Facility | Heights SPV | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Borrowing Capacity | 425,000 | |||||||||||
Total funding debt | 387,185 | 400,758 | ||||||||||
Line of Credit | Revolving Credit Facility | First Heritage SPV | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Borrowing Capacity | 225,000 | |||||||||||
Total funding debt | 159,473 | 182,751 | ||||||||||
Line of Credit | Revolving Credit Facility | Flexiti SPV | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Borrowing Capacity | $ 535,000 | |||||||||||
Total funding debt | 394,018 | 343,565 | ||||||||||
Line of Credit | Revolving Credit Facility | Flexiti Securitization | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Borrowing Capacity | 526,500 | $ 526,500 | ||||||||||
Total funding debt | 398,743 | 387,759 | ||||||||||
Line of Credit | Revolving Credit Facility | Canada SPV | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Borrowing Capacity | 400,000 | |||||||||||
Total funding debt | 251,884 | $ 294,594 | ||||||||||
Line of Credit | Revolving Credit Facility | Canada SPV II | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Borrowing Capacity | 110,000 | |||||||||||
Total funding debt | $ 72,210 | $ 0 | ||||||||||
Line of Credit | Revolving Credit Facility | Senior Revolver | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Borrowing Capacity | 40,000 | |||||||||||
Total funding debt | $ 40,300 | 0 | 35,000 | |||||||||
Line of Credit | Revolving Credit Facility | Canada SPV Non-Recourse Revolving Warehouse Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Borrowing Capacity | $ 110,000 | |||||||||||
Line of Credit | Revolving Credit Facility | Canada SPV Non-Recourse Revolving Warehouse Facility | Canadian Dollar Offered Rate (CDOR) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread (as percent) | 8% | |||||||||||
Funding Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total funding debt | $ 1,663,513 | $ 1,644,427 |
DEBT - Corporate and Funding De
DEBT - Corporate and Funding Debt (Details) $ in Thousands | May 15, 2023 USD ($) | May 15, 2024 | Jun. 30, 2023 USD ($) facility | May 09, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jul. 31, 2021 USD ($) |
Line of Credit Facility [Line Items] | ||||||||
Number of credit facilities held | facility | 6 | |||||||
Restricted cash | $ 109,484 | $ 91,745 | $ 97,465 | |||||
Variable Interest Entity | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Capitalized financing costs | $ 23,058 | 20,047 | ||||||
Number of credit facilities held | facility | 6 | |||||||
Restricted cash | $ 75,298 | $ 52,277 | $ 54,728 | |||||
Senior Notes | 1.0L 18.00% Senior Secured Term Loan | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Stated interest rate (as a percent) | 18% | 18% | 18% | |||||
Senior Notes | 7.5% Senior Secured Notes | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Stated interest rate (as a percent) | 7.50% | 7.50% | 7.50% | 7.50% | ||||
Capitalized financing costs | $ 15,800 | |||||||
Debt instrument, face amount | $ 250,000 | $ 750,000 | ||||||
Senior Notes | 1.5L 7.50% Senior Secured Notes | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Stated interest rate (as a percent) | 7.50% | |||||||
Aggregate principal amount exchanged | $ 682,300 | |||||||
Existing holders (as a percent) | 0.682 | |||||||
Notes received in debt exchange, amount | $ 682,300 | |||||||
Senior Notes | 2.0L 7.50% Senior Secured Notes | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Stated interest rate (as a percent) | 7.50% | |||||||
Debt instrument, face amount | $ 317,700 | |||||||
Line of Credit | 1.0L 18.00% Senior Secured Term Loan | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Paid in kind interest rate (as a percent) | 12% | 12% | ||||||
Capitalized financing costs | $ 19,200 | |||||||
Borrowing Capacity | $ 150,000 | |||||||
Line of Credit | 1.0L 18.00% Senior Secured Term Loan | Revolving Credit Facility | Forecast | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Paid in kind interest rate (as a percent) | 9% |
DEBT - Heights SPV (Details)
DEBT - Heights SPV (Details) - Heights SPV - Line of Credit - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jul. 15, 2022 | |
Debt Instrument [Line Items] | ||
Commitment fee (as percent) | 0.50% | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity | $ 425 |
DEBT - First Heritage SPV (Deta
DEBT - First Heritage SPV (Details) - First Heritage SPV - Line of Credit - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | 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) - Flexiti SPV - CAD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2023 | Oct. 11, 2022 | Sep. 29, 2022 | Sep. 28, 2022 | |
Debt Instrument [Line Items] | ||||
Weighted average interest rate | 8.41% | |||
Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Commitment fee (as percent) | 0.50% | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Borrowing Capacity | $ 425 | $ 535 | $ 500 | |
Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Borrowing Capacity | $ 535 |
DEBT - Flexiti Securitization (
DEBT - Flexiti Securitization (Details) - Flexiti Securitization - CAD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2023 | 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) - Canada SPV $ in Millions | 6 Months Ended |
Jun. 30, 2023 CAD ($) | |
Canadian Dollar Offered Rate (CDOR) | |
Line of Credit Facility [Line Items] | |
Basis spread (as percent) | 6% |
Line of Credit | |
Line of Credit Facility [Line Items] | |
Commitment fee (as percent) | 0.50% |
Line of Credit | Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Borrowing Capacity | $ 400 |
DEBT - Canada SPV II (Details)
DEBT - Canada SPV II (Details) - Canada SPV Non-Recourse Revolving Warehouse Facility - Line of Credit $ in Millions | May 15, 2023 CAD ($) |
Line of Credit Facility [Line Items] | |
Commitment fee (as percent) | 0.50% |
Revolving Credit Facility | |
Debt Disclosure [Abstract] | |
Borrowing Capacity | $ 110 |
Line of Credit Facility [Line Items] | |
Borrowing Capacity | 110 |
Accordion feature amount | $ 40 |
Revolving Credit Facility | Canadian Dollar Offered Rate (CDOR) | |
Line of Credit Facility [Line Items] | |
Basis spread (as percent) | 8% |
DEBT - Senior Revolver (Details
DEBT - Senior Revolver (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
May 15, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||||||
Extinguishment or modification of debt costs | $ 8,864 | $ 0 | $ 8,864 | $ 0 | ||
Senior Revolver | ||||||
Debt Instrument [Line Items] | ||||||
Extinguishment or modification of debt costs | $ 100 | |||||
Senior Revolver | Secured Overnight Financing Rate (SOFR) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread (as percent) | 5% | |||||
Senior Revolver | Line of Credit | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Borrowing Capacity | 40,000 | $ 40,000 | ||||
Total funding debt | 40,300 | 0 | 0 | $ 35,000 | ||
Senior Revolver | Line of Credit | Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Borrowing Capacity | 4,000 | $ 4,000 | ||||
Debt instrument, term | 1 year | |||||
1.0L 18.00% Senior Secured Term Loan | Line of Credit | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Borrowing Capacity | 150,000 | |||||
1.0L 18.00% Senior Secured Term Loan | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Total funding debt | $ 150,000 | $ 167,495 | $ 167,495 | $ 0 | ||
Stated interest rate (as a percent) | 18% | 18% | 18% | 18% |
DEBT - Curo Canada Revolving Cr
DEBT - Curo Canada Revolving Credit Facility (Details) - CURO Canada Revolving Credit Facility - Revolving Credit Facility - Line of Credit $ in Millions, $ in Millions | May 15, 2023 USD ($) | Dec. 21, 2022 CAD ($) | Dec. 20, 2022 CAD ($) |
Debt Instrument [Line Items] | |||
Borrowing Capacity | $ 5 | $ 10 | |
Capitalized financing costs | $ 3.2 |
DEBT - Derivative Instruments a
DEBT - Derivative Instruments and Hedging Activities (Details) $ in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Oct. 11, 2022 CAD ($) | Sep. 29, 2022 CAD ($) | Sep. 28, 2022 CAD ($) | Jul. 07, 2022 CAD ($) | |
Flexiti SPV | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Borrowing Capacity | $ 425 | $ 535 | $ 500 | |||
Interest rate swap, notional amount | $ 425 | |||||
Flexiti SPV | Interest Rate Swap | ||||||
Debt Instrument [Line Items] | ||||||
Gain recognized in other comprehensive income | $ 3.8 | $ 2.9 | ||||
Flexiti SPV | Interest Rate Swap | Designated as Hedging Instrument | ||||||
Debt Instrument [Line Items] | ||||||
Derivative asset | $ 4.7 | $ 4.7 | ||||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | Other long-term liabilities | ||||
Flexiti Securitization | ||||||
Debt Instrument [Line Items] | ||||||
Maximum effective interest rate (as percent) | 7.09% | |||||
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 recognized in other comprehensive income | $ 5 | $ 3.2 | ||||
Flexiti Securitization | Interest Rate Swap | Designated as Hedging Instrument | ||||||
Debt Instrument [Line Items] | ||||||
Derivative asset | $ 10.9 | $ 10.9 | ||||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
COMMITMENTS AND CONTENGENCIES (
COMMITMENTS AND CONTENGENCIES (Details) | 1 Months Ended | 12 Months Ended | |||
Oct. 27, 2022 USD ($) | Jul. 31, 2021 lawsuit | Dec. 31, 2022 USD ($) | Dec. 31, 2020 USD ($) | Jul. 31, 2020 lawsuit | |
Loss Contingencies [Line Items] | |||||
Litigation settlement amount | $ 9,000,000 | ||||
Insurance retention | $ 2,500,000 | ||||
Litigation expense incurred | $ 0 | ||||
Legal fees paid by insurers | $ 345,000 | ||||
Shareholder Derivative Lawsuits | |||||
Loss Contingencies [Line Items] | |||||
Number of lawsuits | lawsuit | 3 | ||||
Number of lawsuits refiled | lawsuit | 2 | ||||
Shareholder Derivative Lawsuits With FFL Defendants | |||||
Loss Contingencies [Line Items] | |||||
Number of lawsuits | lawsuit | 2 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | |
Income Tax Contingency [Line Items] | |||
Effective income tax rate (as percent) | (24.00%) | 19.20% | |
Federal and state/provincial statutory rates | 26% | 26% | |
Valuation allowance | $ 43.5 | $ 56.5 | |
Tax benefit related to share-based compensation | 1.6 | $ 0.8 | |
Tax rate reconciliation, officers' compensation adjustment | 0.7 | ||
Tax expense related to nondeductible transaction costs | 0.3 | ||
Tax rate reconciliation, tax contingency, amount | $ 1 | ||
Undistributed foreign earnings | 223.5 | ||
Retained Earnings (Deficit) | |||
Income Tax Contingency [Line Items] | |||
Valuation allowance | 13 | ||
Income Tax Expense (Benefit) | |||
Income Tax Contingency [Line Items] | |||
Valuation allowance | $ 43.5 | ||
Pro forma | Canada Revenue Agency | |||
Income Tax Contingency [Line Items] | |||
Expected tax if earnings were distributed to the U.S. | $ 11.2 |
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 | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||||||
Net loss | $ (59,327) | $ (59,471) | $ (26,080) | $ 1,336 | $ (118,798) | $ (24,744) |
Weighted average common shares - basic (in shares) | 41,002 | 40,376 | 40,893 | 40,372 | ||
Weighted average common shares - diluted (in shares) | 41,002 | 40,376 | 40,893 | 40,372 | ||
Loss per share: | ||||||
Basic loss per share (in usd per share) | $ (1.45) | $ (0.65) | $ (2.91) | $ (0.61) | ||
Diluted loss per share (in usd per share) | $ (1.45) | $ (0.65) | $ (2.91) | $ (0.61) |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 3.1 | 4.8 | 2.2 | 4.4 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Lessee, Lease, Description [Line Items] | ||||
Operating lease original term of contract | 5 years | 5 years | ||
Restructuring costs incurred during the period | $ 0 | $ 9,956 | $ 9,956 | $ 16,000 |
Lease Exit Costs | ||||
Lessee, Lease, Description [Line Items] | ||||
Restructuring costs incurred during the period | $ 0 | $ 7,500 | $ 7,481 | $ 8,200 |
LEASES - Summary of Operating L
LEASES - Summary of Operating Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Operating lease costs: | ||||
Operating lease cost | $ 5,906 | $ 10,401 | $ 12,672 | $ 20,707 |
Cash paid for amounts included in the measurement of operating lease liabilities | 13,072 | 21,581 | ||
ROU assets obtained | $ 5,274 | $ 6,398 | ||
Weighted average remaining lease term - Operating leases | 4 years 3 months 18 days | 4 years 8 months 12 days | 4 years 3 months 18 days | 4 years 8 months 12 days |
Weighted average discount rate - Operating leases | 8.30% | 7.80% | 8.30% | 7.80% |
Third-Party | ||||
Operating lease costs: | ||||
Operating lease cost | $ 5,749 | $ 9,574 | $ 12,358 | $ 19,053 |
Related-Party | ||||
Operating lease costs: | ||||
Operating lease cost | $ 157 | $ 827 | $ 314 | $ 1,654 |
LEASES - Schedule of Future Min
LEASES - Schedule of Future Minimum Lease Payments (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Lessee, Lease, Description [Line Items] | |
Remainder of 2023 | $ 11,957 |
2024 | 19,248 |
2025 | 13,701 |
2026 | 7,868 |
2027 | 5,241 |
2028 | 3,329 |
Thereafter | 6,446 |
Total | 67,790 |
Less: Imputed interest | (11,205) |
Operating lease liabilities | 56,585 |
Third-Party | |
Lessee, Lease, Description [Line Items] | |
Remainder of 2023 | 11,644 |
2024 | 18,614 |
2025 | 13,050 |
2026 | 7,199 |
2027 | 4,554 |
2028 | 2,661 |
Thereafter | 6,120 |
Total | 63,842 |
Less: Imputed interest | (10,182) |
Operating lease liabilities | 53,660 |
Related-Party | |
Lessee, Lease, Description [Line Items] | |
Remainder of 2023 | 313 |
2024 | 634 |
2025 | 651 |
2026 | 669 |
2027 | 687 |
2028 | 668 |
Thereafter | 326 |
Total | 3,948 |
Less: Imputed interest | (1,023) |
Operating lease liabilities | $ 2,925 |
DIVIDENDS (Details)
DIVIDENDS (Details) | Oct. 31, 2022 $ / shares |
Equity [Abstract] | |
Quarterly cash dividend (in usd per share) | $ 0.11 |
Dividends payable, annualized amount (in usd per share) | $ 0.44 |
SEGMENT REPORTING - Narrative (
SEGMENT REPORTING - Narrative (Details) - 6 months ended Jun. 30, 2023 | store Segment | state | province | territory | partner |
Segment Reporting Information [Line Items] | |||||
Number of operating segments | Segment | 2 | ||||
Canada | |||||
Segment Reporting Information [Line Items] | |||||
Number of territories with online presence | territory | 1 | ||||
Direct Lending | |||||
Segment Reporting Information [Line Items] | |||||
Number of operating segments | Segment | 1 | ||||
Direct Lending | Canada | |||||
Segment Reporting Information [Line Items] | |||||
Number of states/provinces with online presence | province | 8 | ||||
Number of stores | 150 | ||||
Number of states/provinces with retail locations | province | 8 | ||||
Direct Lending | U.S. | |||||
Segment Reporting Information [Line Items] | |||||
Number of retail locations | 490 | ||||
Number of states/provinces with online presence | state | 13 | ||||
Canada POS Lending | |||||
Segment Reporting Information [Line Items] | |||||
Number of retail locations | 8,800 | ||||
Number of merchant partners | partner | 3,700 | ||||
Number of geographical locations | 10 | 2 |
SEGMENT REPORTING - Summary of
SEGMENT REPORTING - Summary of Financial Information by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Revenues by segment: | |||||
Consolidated revenue | $ 209,243 | $ 304,404 | $ 418,716 | $ 594,600 | |
Net revenues by segment: | |||||
Consolidated net revenue | 129,645 | 174,858 | 276,186 | 367,523 | |
Segment (loss) before income taxes: | |||||
Consolidated (loss) before income taxes | (57,036) | (33,070) | (95,804) | (30,628) | |
Expenditures for long-lived assets by segment: | |||||
Consolidated expenditures for long-lived assets | 11,813 | 10,710 | 21,840 | 22,249 | |
Total loans receivable | 2,139,865 | 2,139,865 | $ 2,087,833 | ||
Direct Lending | |||||
Revenues by segment: | |||||
Consolidated revenue | 167,016 | 281,251 | 336,384 | 551,138 | |
Net revenues by segment: | |||||
Consolidated net revenue | 103,261 | 157,667 | 224,265 | 338,737 | |
Segment (loss) before income taxes: | |||||
Consolidated (loss) before income taxes | (50,917) | (21,596) | (82,549) | (8,619) | |
Expenditures for long-lived assets by segment: | |||||
Consolidated expenditures for long-lived assets | 5,257 | 4,670 | 9,114 | 11,985 | |
Total loans receivable | 1,227,615 | 1,227,615 | 1,254,395 | ||
Canada POS Lending | |||||
Revenues by segment: | |||||
Consolidated revenue | 42,227 | 23,153 | 82,332 | 43,462 | |
Net revenues by segment: | |||||
Consolidated net revenue | 26,384 | 17,191 | 51,921 | 28,786 | |
Segment (loss) before income taxes: | |||||
Consolidated (loss) before income taxes | (6,119) | (11,474) | (13,255) | (22,009) | |
Expenditures for long-lived assets by segment: | |||||
Consolidated expenditures for long-lived assets | 6,556 | $ 6,040 | 12,726 | $ 10,264 | |
Total loans receivable | $ 912,250 | $ 912,250 | $ 833,438 |
SEGMENT REPORTING - Summary o_2
SEGMENT REPORTING - Summary of Financial Information by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||||
Total revenue | $ 209,243 | $ 304,404 | $ 418,716 | $ 594,600 | |
Total loans receivable | 2,139,865 | 2,139,865 | $ 2,087,833 | ||
U.S. | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 89,400 | 205,711 | 181,825 | 404,110 | |
Total loans receivable | 718,586 | 718,586 | 773,380 | ||
Canada | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 119,843 | 98,693 | 236,891 | 190,490 | |
Total loans receivable | 1,421,279 | 1,421,279 | 1,314,453 | ||
Direct Lending | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 167,016 | 281,251 | 336,384 | 551,138 | |
Total loans receivable | 1,227,615 | 1,227,615 | 1,254,395 | ||
Canada POS Lending | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 42,227 | $ 23,153 | 82,332 | $ 43,462 | |
Total loans receivable | $ 912,250 | $ 912,250 | $ 833,438 |
SEGMENT REPORTING - Summary o_3
SEGMENT REPORTING - Summary of Long-lived Assets by Geographical Region (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net long-lived assets | $ 28,418 | $ 31,957 |
U.S. | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net long-lived assets | 11,430 | 29,232 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net long-lived assets | $ 16,988 | $ 2,725 |
ACQUISITIONS AND DIVESTITURE -
ACQUISITIONS AND DIVESTITURE - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | 18 Months Ended | ||||||||||||
Mar. 31, 2023 USD ($) | Jul. 13, 2022 USD ($) | Jul. 08, 2022 USD ($) | Dec. 27, 2021 USD ($) state branch | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2021 | Jul. 31, 2021 | Mar. 31, 2021 USD ($) | |
Business Acquisition [Line Items] | ||||||||||||||||
Goodwill | $ 277,069 | $ 276,269 | $ 277,069 | $ 277,069 | $ 276,269 | $ 277,069 | ||||||||||
Interest and fee revenue | $ 7,700 | 0 | ||||||||||||||
Contingent consideration related to acquisition | 18,499 | $ 16,884 | 18,499 | $ 18,499 | $ 16,884 | $ 18,499 | $ 20,600 | |||||||||
Total revenue | 209,243 | $ 304,404 | 418,716 | $ 594,600 | ||||||||||||
Operating expenses | (78,534) | (47,535) | (145,645) | (84,028) | ||||||||||||
Total proceeds | (2,027) | 0 | ||||||||||||||
Gain on sale of business | 0 | 0 | (2,027) | 0 | ||||||||||||
Consolidated (loss) before income taxes | $ (57,036) | (33,070) | $ (95,804) | (30,628) | ||||||||||||
7.5% Senior Secured Notes | Senior Notes | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Stated interest rate (as a 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] | ||||||||||||||||
Consolidated (loss) before income taxes | $ 21,300 | $ 57,100 | ||||||||||||||
Discontinued Operations, Disposed of by Sale | U.S. Legacy Direct Lending Business | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Total proceeds | $ 347,180 | $ 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 | $ 66,417 | $ 68,444 | $ 0 | $ (2,000) | $ 68,400 | |||||||||||
Reduction of gain on divestiture | 0 | 2,000 | $ (2,027) | |||||||||||||
First Heritage SPV | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Consideration transferred in business acquisition | $ 140,000 | |||||||||||||||
Goodwill | $ 75,365 | 75,400 | 75,400 | 75,400 | $ 75,400 | |||||||||||
Heights SPV | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Consideration transferred in business acquisition | $ 360,000 | |||||||||||||||
Goodwill | $ 253,857 | $ 265,682 | $ 265,700 | $ 265,682 | $ 265,682 | 265,700 | 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 | $ 11,800 | (11,825) | |||||||||||||
Accounts payable and accrued liabilities, measurement period adjustments | 4,200 | 4,209 | ||||||||||||||
Measurement period adjustment, income tax receivable | $ 4,200 | $ 4,209 |
ACQUISITIONS AND DIVESTITURE _2
ACQUISITIONS AND DIVESTITURE - Schedule of Assets Acquired and Liabilities Assumed - First Heritage Credit (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jul. 13, 2022 |
Liabilities | |||
Goodwill | $ 277,069 | $ 276,269 | |
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 | $ 75,400 | 75,365 | |
Gross contractual loans receivable | 236,100 | ||
Estimate of gross contractual loans that will not be collected | $ 18,100 |
ACQUISITIONS AND DIVESTITURE _3
ACQUISITIONS AND DIVESTITURE - Components of Identifiable Intangible Assets - First Heritage Credit (Details) - First Heritage SPV $ in Thousands | Jul. 13, 2022 USD ($) |
Business Acquisition [Line Items] | |
Fair Value | $ 10,670 |
Trade name | |
Business Acquisition [Line Items] | |
Fair Value | $ 3,790 |
Useful Life | 10 years |
Customer relationships | |
Business Acquisition [Line Items] | |
Fair Value | $ 6,880 |
Useful Life | 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 | 18 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2022 | Jun. 30, 2023 | Dec. 27, 2021 | |
Liabilities | ||||
Goodwill | $ 276,269 | $ 276,269 | $ 277,069 | |
Heights SPV | ||||
Assets | ||||
Cash and cash equivalents | 13,564 | $ 13,564 | ||
Restricted cash | 33,630 | 33,630 | ||
Gross loans receivable | 456,251 | 471,630 | ||
Gross loans receivable, measurement period adjustments | (15,379) | |||
Income tax receivable | 7,735 | 3,526 | ||
Income tax receivable, measurement period adjustments | 4,200 | 4,209 | ||
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 | 0 | ||
Deferred tax asset, measurement period adjustment | 2,477 | |||
Other assets | 98 | 98 | ||
Total assets | 553,924 | 562,617 | ||
Total assets | (8,693) | |||
Liabilities | ||||
Accounts payable and accrued liabilities | 23,395 | 19,186 | ||
Accounts payable and accrued liabilities, measurement period adjustments | 4,200 | 4,209 | ||
Lease liabilities | 16,315 | 16,315 | ||
Deferred tax liability | 0 | 1,077 | ||
Deferred tax liability, measurement period adjustments | (1,077) | |||
Accrued interest on debt | 1,781 | 1,781 | ||
Debt | 350,000 | 350,000 | ||
Total liabilities | 391,491 | 388,359 | ||
Total liabilities | 3,132 | |||
Net assets acquired | 162,433 | 174,258 | ||
Net assets acquired, purchase accounting adjustments | 3,500 | 11,800 | (11,825) | |
Total consideration paid | 428,115 | 428,115 | ||
Goodwill | $ 265,700 | $ 265,700 | $ 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 and Liabilities Divestiture - Legacy U.S. Direct Lending Business (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Mar. 31, 2023 | Jul. 08, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | |
Assets | ||||||||
Cash, cash equivalents and restricted cash | $ 10,240 | $ 10,240 | ||||||
Liabilities | ||||||||
Total proceeds | $ (2,027) | 0 | ||||||
Total pretax gain on sale of business | $ 0 | $ 0 | (2,027) | $ 0 | ||||
Discontinued Operations, Disposed of by Sale | U.S. Legacy Direct Lending Business | ||||||||
Assets | ||||||||
Cash, cash equivalents and restricted cash | $ 21,292 | 21,292 | 21,292 | $ 21,292 | ||||
Loans receivable | 162,147 | 162,147 | 162,147 | 162,147 | ||||
Right of use asset | 39,326 | 39,326 | 39,326 | 39,326 | ||||
Goodwill | 91,131 | 91,131 | 91,131 | 91,131 | ||||
Other assets | 30,690 | 28,663 | 28,663 | 28,663 | ||||
Other assets, subsequent adjustments | 0 | 2,000 | (2,027) | |||||
Total assets | 344,586 | 342,559 | 342,559 | 342,559 | ||||
Total assets, subsequent adjustments | (2,027) | |||||||
Liabilities | ||||||||
Accounts payable and accrued liabilities | (8,947) | (8,947) | (8,947) | (8,947) | ||||
Right of use liability | (43,433) | (43,433) | (43,433) | (43,433) | ||||
Liability for losses on CSO lender-owned consumer loans | (5,628) | (5,628) | (5,628) | (5,628) | ||||
Other long term liabilities | (5,815) | (5,815) | (5,815) | (5,815) | ||||
Total liabilities | (63,823) | (63,823) | (63,823) | (63,823) | ||||
Net assets sold | 280,763 | 280,763 | 280,763 | 280,763 | ||||
Total proceeds | $ 347,180 | 349,207 | ||||||
Total proceeds, subsequent adjustments | (2,027) | |||||||
Total pretax gain on sale of business, subsequent adjustments | ||||||||
Total pretax gain on sale of business | $ 66,417 | $ 68,444 | $ 0 | $ (2,000) | $ 68,400 |
RESTRUCTURING - Narrative (Deta
RESTRUCTURING - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) store contract | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 0 | $ 9,956 | $ 9,956 | $ 16,000 |
Workforce reduction, number of employees | contract | 150 | |||
UNITED STATES AND CANADA | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of stores closed | store | 89 | |||
Employee Termination Benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 2,475 | $ 7,900 | ||
Lease Exit Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 0 | $ 7,500 | $ 7,481 | $ 8,200 |
RESTRUCTURING - Restructuring C
RESTRUCTURING - Restructuring Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 0 | $ 9,956 | $ 9,956 | $ 16,000 |
Salaries and Benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1,517 | |||
Other Operating Expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 8,439 | |||
Employee Termination Benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 2,475 | 7,900 | ||
Employee Termination Benefits | Salaries and Benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1,517 | |||
Employee Termination Benefits | Other Operating Expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 958 | |||
Lease Exit Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 0 | $ 7,500 | 7,481 | $ 8,200 |
Lease Exit Costs | Salaries and Benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0 | |||
Lease Exit Costs | Other Operating Expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 7,481 |
RESTRUCTURING - Accrued Restruc
RESTRUCTURING - Accrued Restructuring Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Restructuring Reserve [Roll Forward] | ||||
Accrued restructuring costs, beginning balance | $ 10,061 | $ 4,746 | $ 4,746 | |
Restructuring costs incurred during the period | 0 | 9,956 | 9,956 | $ 16,000 |
Amount paid during the period | (2,904) | (4,641) | ||
Accrued restructuring costs, ending balance | $ 7,157 | $ 10,061 | $ 7,157 | $ 4,746 |
SHARE REPURCHASE PROGRAM (Detai
SHARE REPURCHASE PROGRAM (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Jun. 30, 2022 | Feb. 28, 2022 | May 31, 2021 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Total authorized repurchase amount for the period presented | $ 50,000 | |||
Total value of shares repurchased | $ 12,530 | |||
Repurchase Program, 2022 | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Total authorized repurchase amount for the period presented | $ 25,000 | |||
Repurchase Program, 2021 | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Total number of shares repurchased (in shares) | 824,477 | |||
Average price paid per share (in usd per share) | $ 15.20 | |||
Total value of shares repurchased | $ 12,500 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Millions | Aug. 02, 2023 CAD ($) |
Forecast | FLX Holding Corporation | |
Subsequent Event [Line Items] | |
Divestiture sales price | $ 55 |