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Condensed Consolidating Financial Statements
3 Months Ended
Mar. 31, 2016
Condensed Financial Information Of Parent Company Only Disclosure [Abstract]  
Condensed Consolidating Financial Statements

14.

Condensed Consolidating Financial Statements

The Company’s Notes are unconditionally guaranteed by certain of the Company’s subsidiaries (the “Guarantor Subsidiaries”) and are not secured by our other subsidiaries (the “Non-Guarantor Subsidiaries”). The Guarantor Subsidiaries are 100% owned, all guarantees are full and unconditional, and all guarantees are joint and several. As a result of the guarantee arrangements, we are required to present the following condensed consolidating financial statements.

The condensed consolidating financial statements reflect the investments in subsidiaries of the Company using the equity method of accounting. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions. Condensed consolidating financial statements of Enova International, Inc. (the “Parent”), its Guarantor Subsidiaries and Non-Guarantor Subsidiaries as of March 31, 2016 and December 31, 2015 and for the three months ended March 31, 2016 are shown on the following pages. Such statements as of and for the periods ended March 31, 2015 are not presented as the Parent has no independent assets or operations and the Non-Guarantor Subsidiaries were minor (as defined in Rule 3-10(h)(6) of Regulation S-X of the Securities Act, having total assets, stockholders’ equity, revenue, income (loss) before taxes and cash flows from operating activities of less than 3% of the Company’s corresponding consolidated amounts). Total assets, income (loss) before taxes and cash flows from operating activities for the Non-Guarantor Subsidiaries exceeded the 3% threshold for the three months ended March 31, 2016, and as a result, the present condensed consolidating financial statements are provided.

CONDENSED CONSOLIDATING BALANCE SHEETS

As of March 31, 2016

(dollars in thousands)

 

 

 

 

 

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

 

 

 

 

 

Parent

 

 

Subsidiaries

 

 

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

—

 

 

$

110,721

 

 

$

1,490

 

 

$

—

 

 

$

112,211

 

Restricted cash

 

 

—

 

 

 

7,191

 

 

 

13,717

 

 

 

—

 

 

 

20,908

 

Loans and finance receivables, net

 

 

—

 

 

 

285,172

 

 

 

143,030

 

 

 

—

 

 

 

428,202

 

Income taxes receivable

 

 

42,513

 

 

 

(35,073

)

 

 

(4

)

 

 

—

 

 

 

7,436

 

Other receivables and prepaid expenses

 

 

131

 

 

 

18,487

 

 

 

192

 

 

 

—

 

 

 

18,810

 

Property and equipment, net

 

 

—

 

 

 

45,404

 

 

 

336

 

 

 

—

 

 

 

45,740

 

Goodwill

 

 

—

 

 

 

267,012

 

 

 

—

 

 

 

—

 

 

 

267,012

 

Intangible assets, net

 

 

—

 

 

 

6,214

 

 

 

7

 

 

 

—

 

 

 

6,221

 

Investment in subsidiaries

 

 

248,576

 

 

 

13,769

 

 

 

—

 

 

 

(262,345

)

 

 

—

 

Intercompany receivable

 

 

426,183

 

 

 

—

 

 

 

—

 

 

 

(426,183

)

 

 

—

 

Other assets

 

 

767

 

 

 

7,869

 

 

 

—

 

 

 

—

 

 

 

8,636

 

Total assets

 

$

718,170

 

 

$

726,766

 

 

$

158,768

 

 

$

(688,528

)

 

$

915,176

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

16,349

 

 

$

56,572

 

 

$

1,357

 

 

$

—

 

 

$

74,278

 

Intercompany payables

 

 

—

 

 

 

384,495

 

 

 

41,688

 

 

 

(426,183

)

 

 

—

 

Deferred tax liabilities, net

 

 

—

 

 

 

29,146

 

 

 

(267

)

 

 

—

 

 

 

28,879

 

Long-term debt

 

 

484,216

 

 

 

—

 

 

 

110,198

 

 

 

—

 

 

 

594,414

 

Total liabilities

 

 

500,565

 

 

 

470,213

 

 

 

152,976

 

 

 

(426,183

)

 

 

697,571

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

217,605

 

 

 

256,553

 

 

 

5,792

 

 

 

(262,345

)

 

 

217,605

 

Total liabilities and stockholders' equity

 

$

718,170

 

 

$

726,766

 

 

$

158,768

 

 

$

(688,528

)

 

$

915,176

 


CONDENSED CONSOLIDATING BALANCE SHEETS

As of December 31, 2015

(dollars in thousands)

 

 

 

 

 

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

 

 

 

 

 

Parent

 

 

Subsidiaries

 

 

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

—

 

 

$

40,927

 

 

$

1,139

 

 

$

—

 

 

$

42,066

 

Restricted cash

 

 

—

 

 

 

7,379

 

 

 

—

 

 

 

—

 

 

 

7,379

 

Loans and finance receivables, net

 

 

—

 

 

 

430,862

 

 

 

3,771

 

 

 

—

 

 

 

434,633

 

Income taxes receivable

 

 

37,201

 

 

 

(31,709

)

 

 

11

 

 

 

—

 

 

 

5,503

 

Other receivables and prepaid expenses

 

 

162

 

 

 

19,791

 

 

 

96

 

 

 

—

 

 

 

20,049

 

Property and equipment, net

 

 

—

 

 

 

47,821

 

 

 

234

 

 

 

—

 

 

 

48,055

 

Goodwill

 

 

—

 

 

 

267,008

 

 

 

—

 

 

 

—

 

 

 

267,008

 

Intangible assets, net

 

 

—

 

 

 

6,532

 

 

 

8

 

 

 

—

 

 

 

6,540

 

Investment in subsidiaries

 

 

233,632

 

 

 

14,177

 

 

 

—

 

 

 

(247,809

)

 

 

—

 

Intercompany receivable

 

 

480,112

 

 

 

—

 

 

 

794

 

 

 

(480,906

)

 

 

—

 

Other assets

 

 

2,284

 

 

 

7,020

 

 

 

—

 

 

 

—

 

 

 

9,304

 

Total assets

 

$

753,391

 

 

$

809,808

 

 

$

6,053

 

 

$

(728,715

)

 

$

840,537

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

5,514

 

 

$

66,220

 

 

$

407

 

 

$

—

 

 

$

72,141

 

Intercompany payables

 

 

—

 

 

 

480,906

 

 

 

—

 

 

 

(480,906

)

 

 

—

 

Deferred tax liabilities, net

 

 

—

 

 

 

20,562

 

 

 

(43

)

 

 

—

 

 

 

20,519

 

Long-term debt

 

 

541,909

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

541,909

 

Total liabilities

 

 

547,423

 

 

 

567,688

 

 

 

364

 

 

 

(480,906

)

 

 

634,569

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

205,968

 

 

 

242,120

 

 

 

5,689

 

 

 

(247,809

)

 

 

205,968

 

Total liabilities and stockholders' equity

 

$

753,391

 

 

$

809,808

 

 

$

6,053

 

 

$

(728,715

)

 

$

840,537

 


CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

For the Three Months Ended March 31, 2016

(in thousands)

 

 

 

 

 

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

 

 

 

 

 

Parent

 

 

Subsidiaries

 

 

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Revenue

 

$

—

 

 

$

173,136

 

 

$

2,206

 

 

$

(689

)

 

$

174,653

 

Cost of Revenue

 

 

—

 

 

 

66,445

 

 

 

3,132

 

 

 

—

 

 

 

69,577

 

Gross Profit

 

 

—

 

 

 

106,691

 

 

 

(926

)

 

 

(689

)

 

 

105,076

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketing

 

 

—

 

 

 

20,782

 

 

 

399

 

 

 

—

 

 

 

21,181

 

Operations and technology

 

 

—

 

 

 

19,183

 

 

 

951

 

 

 

—

 

 

 

20,134

 

General and administrative

 

 

43

 

 

 

27,442

 

 

 

1,129

 

 

 

(689

)

 

 

27,925

 

Depreciation and amortization

 

 

—

 

 

 

3,968

 

 

 

19

 

 

 

—

 

 

 

3,987

 

Total Expenses

 

 

43

 

 

 

71,375

 

 

 

2,498

 

 

 

(689

)

 

 

73,227

 

Income (Loss) from Operations

 

 

(43

)

 

 

35,316

 

 

 

(3,424

)

 

 

—

 

 

 

31,849

 

Interest expense, net

 

 

(13,272

)

 

 

425

 

 

 

(3,068

)

 

 

—

 

 

 

(15,915

)

Foreign currency transaction gain

 

 

1,568

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,568

 

Income (Loss) before Income Taxes and Equity in Net Earnings of Subsidiaries

 

 

(11,747

)

 

 

35,741

 

 

 

(6,492

)

 

 

—

 

 

 

17,502

 

Provision for income taxes

 

 

(5,127

)

 

 

15,600

 

 

 

(2,834

)

 

 

—

 

 

 

7,639

 

Income (loss) before Equity in Net Earnings of Subsidiaries

 

 

(6,620

)

 

 

20,141

 

 

 

(3,658

)

 

 

—

 

 

 

9,863

 

Net earnings of subsidiaries

 

 

16,483

 

 

 

(3,658

)

 

 

—

 

 

 

(12,825

)

 

 

—

 

Net Income (Loss)

 

$

9,863

 

 

$

16,483

 

 

$

(3,658

)

 

$

(12,825

)

 

$

9,863

 

Other comprehensive (loss) gain, net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation (loss) gain

 

 

(136

)

 

 

(648

)

 

 

511

 

 

 

137

 

 

 

(136

)

Total other comprehensive (loss) gain, net of tax

 

 

(136

)

 

 

(648

)

 

 

511

 

 

 

137

 

 

 

(136

)

Comprehensive Income (Loss)

 

$

9,727

 

 

$

15,835

 

 

$

(3,147

)

 

$

(12,688

)

 

$

9,727

 


CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

For the Three Months Ended March 31, 2016

(in thousands)

 

 

 

 

 

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

 

 

 

 

 

Parent

 

 

Subsidiaries

 

 

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Cash Flows from Operating Activities

 

$

75,286

 

 

$

(3,466

)

 

$

39,942

 

 

$

(13,170

)

 

$

98,592

 

Cash Flows from Investing Activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and finance receivables originated or acquired

 

 

—

 

 

 

(138,592

)

 

 

(138,255

)

 

 

—

 

 

 

(276,847

)

Loans and finance receivables repaid

 

 

—

 

 

 

212,682

 

 

 

(1,505

)

 

 

—

 

 

 

211,177

 

Change in restricted cash

 

 

—

 

 

 

—

 

 

 

(13,717

)

 

 

—

 

 

 

(13,717

)

Purchases of property and equipment

 

 

—

 

 

 

(2,140

)

 

 

(90

)

 

 

—

 

 

 

(2,230

)

Capital contributions to subsidiaries

 

 

(16,828

)

 

 

(3,250

)

 

 

—

 

 

 

20,078

 

 

 

—

 

Other investing activities

 

 

—

 

 

 

58

 

 

 

—

 

 

 

—

 

 

 

58

 

Net cash used in investing activities

 

 

(16,828

)

 

 

68,758

 

 

 

(153,567

)

 

 

20,078

 

 

 

(81,559

)

Cash Flows from Financing Activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payments for (proceeds from) member's equity

 

 

—

 

 

 

3,658

 

 

 

3,250

 

 

 

(6,908

)

 

 

—

 

Debt issuance costs paid

 

 

—

 

 

 

—

 

 

 

(3,271

)

 

 

—

 

 

 

(3,271

)

Treasury shares purchased

 

 

(58

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(58

)

Borrowings under revolving line of credit

 

 

10,000

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

10,000

 

Repayments under revolving line of credit

 

 

(68,400

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(68,400

)

Borrowings under securitization facility

 

 

—

 

 

 

—

 

 

 

135,061

 

 

 

—

 

 

 

135,061

 

Repayments under securitization facility

 

 

—

 

 

 

—

 

 

 

(21,148

)

 

 

—

 

 

 

(21,148

)

Net cash provided by (used in) financing activities

 

 

(58,458

)

 

 

3,658

 

 

 

113,892

 

 

 

(6,908

)

 

 

52,184

 

Effect of exchange rates on cash

 

 

—

 

 

 

844

 

 

 

84

 

 

 

—

 

 

 

928

 

Net decrease in cash and cash equivalents

 

 

—

 

 

 

69,794

 

 

 

351

 

 

 

—

 

 

 

70,145

 

Cash and cash equivalents at beginning of year

 

 

—

 

 

 

40,927

 

 

 

1,139

 

 

 

—

 

 

 

42,066

 

Cash and cash equivalents at end of period

 

$

—

 

 

$

110,721

 

 

$

1,490

 

 

$

—

 

 

$

112,211