United States securities and exchange commission logo
March 10, 2021
William R. McCamey
Chief Financial Officer
Atlanticus Holdings Corporation
Five Concourse Parkway,
Suite 300
Atlanta, Georgia 30328
Re: Atlanticus Holdings
Corporation
Form 10-Q for the
Quarterly Period ended September 30, 2020
Filed on November
13, 2020
File No. 000-53717
Dear Mr. McCamey:
We have reviewed your January 15, 2021 response to our comment
letter and have the
following comments. In some of our comments, we may ask you to provide
us with information
so we may better understand your disclosure.
Please respond to these comments within ten business days by
providing the requested
information or advise us as soon as possible when you will respond. If
you do not believe our
comments apply to your facts and circumstances, please tell us why in
your response.
After reviewing your response to these comments, we may have
additional
comments. Unless we note otherwise, our references to prior comments are
to comments in our
December 17, 2020 letter.
Form 10-Q for the Quarterly Period ended September 30, 2020
Item 2. Management s Discussion and Analysis of Financial Condition
and Results of
Operations
Definitions of Financial Operating and Statistical Measures, page 39
1. We note from your
response to comment 1 and your disclosure on page 30 that you
elected the fair value
option to account for certain loans receivable associated with your
point-of-sale and
direct-to-consumer platform that are acquired on or after January 1,
2020. We also note you
make material adjustments to eliminate the impact of fair value
option accounting in
your calculation of total yield and managed receivables which are
used in your
calculation of the total yield ratio, combined gross charge-off ratio, percent
of loans 30 or more
days past due, percent of loans 60 or more days past due, and percent
William R. McCamey
Atlanticus Holdings Corporation
March 10, 2021
Page 2
of loans 90 or more days past due. Therefore, we consider these to be
non-GAAP
measures as defined by Regulation G and Item 10(e) of Regulation S-K
as they are not
required by GAAP or Commission Rules. Please revise future filings to
comply with all
of the requirements of Item 10(e) of Regulation S-K, including clearly
labeling the total
yield, managed receivables, total yield ratio, combined gross
charge-off ratio, percent of
loans 30 or more days past due, percent of loans 60 or more days past
due, and percent of
loans 90 or more days past due as a non-GAAP measures, reconciling
each of the
components of these non-GAAP measures to the most directly comparable
GAAP
measure, and disclosing how you use these non-GAAP measures
internally, and why such
information is useful. Please provide us with your proposed revised
disclosures in your
response based on the most recent period presented.
2. We note your disclosure of the percent of loans 30 or more days past
due, percent of loans
60 or more days past due, and percent of loans 90 or more days past
due. In light of the
fact that these percentages are based on loans accounted for at
amortized cost, as well as
loans for which you have elected the fair value option, please revise
future filings to show
the components of this ratio, separately breaking out the numerator of
each ratio between
loans at amortized cost, and loans for which the fair value option was
elected.
3. Please revise future filings to change the name of the combined
gross charge-off ratio to
combined net charge-off ratio to more accurately describe its content.
4. Please revise future filings to indicate that the total yield ratio
and combined net charge-
off ratio are presented on an annualized basis, as applicable.
You may contact Becky Chow, Staff Accountant, at (202) 551-6524, or
William
Schroeder, Staff Accountant, at (202) 551-3294 with any other questions.
FirstName LastNameWilliam R. McCamey Sincerely,
Comapany NameAtlanticus Holdings Corporation
Division of
Corporation Finance
March 10, 2021 Page 2 Office of
Finance
FirstName LastName