Delaware | 90-0934597 | |
(State or other jurisdiction Of incorporation or organization) | (I.R.S. Employer Identification No.) | |
3527 North Ridge Road, Wichita, KS | 67205 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |
Non-accelerated filer | ☒ | (Do not check if a smaller reporting company) | ||
Smaller reporting company | ☐ | Emerging growth company | ☒ |
Page | |||||||
Item 1. | Financial Statements (unaudited) | ||||||
June 30, 2018 and December 31, 2017 | |||||||
Three and six months ended June 30, 2018 and 2017 | |||||||
Three and six months ended June 30, 2018 and 2017 | |||||||
Six months ended June 30, 2018 and 2017 | |||||||
Item 2. | |||||||
Item 3. | |||||||
Item 4. | |||||||
Item 1. | |||||||
Item 1A. | |||||||
Item 2. | |||||||
Item 3. | |||||||
Item 4. | |||||||
Item 5. | |||||||
Item 6. |
June 30, 2018 | December 31, 2017 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Cash | $ | 115,105 | $ | 162,374 | |||
Restricted cash (includes restricted cash of consolidated VIEs of $7,274 and $6,871 as of June 30, 2018 and December 31, 2017, respectively) | 12,448 | 12,117 | |||||
Gross loans receivable (includes loans of consolidated VIEs of $199,877 and $213,846 as of June 30, 2018 and December 31, 2017, respectively) | 444,627 | 432,837 | |||||
Less: allowance for loan losses (includes loans of consolidated VIEs of $28,545 and $46,140 as of June 30, 2018 and December 31, 2017, respectively) | (59,754 | ) | (69,568 | ) | |||
Loans receivable, net | 384,873 | 363,269 | |||||
Deferred income taxes | 3,697 | 772 | |||||
Income taxes receivable | 623 | 3,455 | |||||
Prepaid expenses and other | 36,297 | 42,512 | |||||
Property and equipment, net | 80,420 | 87,086 | |||||
Goodwill | 143,753 | 145,607 | |||||
Other intangibles, net of accumulated amortization of $42,382 and $41,156 as of June 30, 2018 and December 31, 2017, respectively) | 30,825 | 32,769 | |||||
Other | 12,809 | 9,770 | |||||
Total Assets | $ | 820,850 | $ | 859,731 | |||
LIABILITIES AND STOCKHOLDER’S EQUITY | |||||||
Accounts payable and accrued liabilities | $ | 53,557 | $ | 55,792 | |||
Deferred revenue | 10,548 | 11,984 | |||||
Income taxes payable | 5,475 | 4,120 | |||||
Accrued interest (includes accrued interest of consolidated VIEs of $1,237 and $1,266 as of June 30, 2018 and December 31, 2017, respectively) | 22,175 | 25,467 | |||||
Credit services organization guarantee liability | 11,619 | 17,795 | |||||
Deferred rent | 11,481 | 11,577 | |||||
Long-term debt (includes long-term debt and issuance costs of consolidated VIEs of $118,427 and $3,653 as of June 30, 2018 and $124,590 and $4,188 as of December 31, 2017, respectively) | 626,833 | 706,225 | |||||
Subordinated shareholder debt | 2,278 | 2,381 | |||||
Other long-term liabilities | 6,589 | 5,768 | |||||
Deferred tax liabilities | 17,446 | 11,486 | |||||
Total Liabilities | 768,001 | 852,595 | |||||
Commitments and contingencies | |||||||
Stockholder's Equity | |||||||
Preferred stock - $0.001 par value, 25,000,000 shares authorized; no shares were issued at either period end | — | — | |||||
Class A common stock - $0.001 par value; 225,000,000 shares authorized; 45,770,551 and 44,561,419 issued and outstanding as of June 30, 2018 and December 31, 2017, respectively) | 9 | 8 | |||||
Paid-in capital | 62,573 | 46,079 | |||||
Retained earnings | 43,254 | 3,988 | |||||
Accumulated other comprehensive loss | (52,987 | ) | (42,939 | ) | |||
Total Stockholders' Equity | 52,849 | 7,136 | |||||
Total Liabilities and Stockholders' Equity | $ | 820,850 | $ | 859,731 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenue | $ | 248,983 | $ | 216,944 | $ | 510,741 | $ | 441,524 | |||||||
Provision for losses | 91,986 | 65,446 | 173,017 | 127,182 | |||||||||||
Net revenue | 156,997 | 151,498 | 337,724 | 314,342 | |||||||||||
Cost of providing services | |||||||||||||||
Salaries and benefits | 26,907 | 26,300 | 53,826 | 52,733 | |||||||||||
Occupancy | 13,320 | 13,511 | 26,747 | 27,606 | |||||||||||
Office | 6,077 | 4,936 | 13,057 | 9,804 | |||||||||||
Other costs of providing services | 12,727 | 13,108 | 27,127 | 27,963 | |||||||||||
Advertising | 17,554 | 11,641 | 27,310 | 19,329 | |||||||||||
Total cost of providing services | 76,585 | 69,496 | 148,067 | 137,435 | |||||||||||
Gross margin | 80,412 | 82,002 | 189,657 | 176,907 | |||||||||||
Operating expense | |||||||||||||||
Corporate, district and other | 38,655 | 36,557 | 79,109 | 69,550 | |||||||||||
Interest expense | 20,465 | 18,484 | 42,814 | 41,850 | |||||||||||
Loss on extinguishment of debt | — | — | 11,683 | 12,458 | |||||||||||
Total operating expense | 59,120 | 55,041 | 133,606 | 123,858 | |||||||||||
Net income before income taxes | 21,292 | 26,961 | 56,051 | 53,049 | |||||||||||
Provision for income taxes | 5,317 | 10,619 | 16,784 | 20,069 | |||||||||||
Net income | $ | 15,975 | $ | 16,342 | $ | 39,267 | $ | 32,980 | |||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 45,650 | 37,895 | 45,578 | 37,895 | |||||||||||
Diluted | 47,996 | 38,987 | 47,757 | 38,983 | |||||||||||
Net income per common share: | |||||||||||||||
Basic earnings per share | $ | 0.35 | $ | 0.43 | $ | 0.86 | $ | 0.87 | |||||||
Diluted earnings per share: | $ | 0.33 | $ | 0.42 | $ | 0.82 | $ | 0.85 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income | $ | 15,975 | $ | 16,342 | $ | 39,267 | $ | 32,980 | |||||||
Other comprehensive income (loss): | |||||||||||||||
Cash flow hedges, net of $0 tax in all periods | (439 | ) | 375 | (385 | ) | 333 | |||||||||
Foreign currency translation adjustment, net of $0 tax in all periods | (6,752 | ) | 6,961 | (9,663 | ) | 9,751 | |||||||||
Other comprehensive income (loss) | (7,191 | ) | 7,336 | (10,048 | ) | 10,084 | |||||||||
Comprehensive income | $ | 8,784 | $ | 23,678 | $ | 29,219 | $ | 43,064 |
Six Months Ended June 30, | |||||||
2018 | 2017 | ||||||
Cash flows from operating activities | |||||||
Net income | $ | 39,267 | $ | 32,980 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 9,259 | 9,330 | |||||
Provision for loan losses | 173,017 | 127,182 | |||||
Amortization of debt issuance costs | 2,493 | 1,702 | |||||
Amortization of bond discount/(premium) | (376 | ) | 424 | ||||
Deferred income tax benefit | 3,199 | (653 | ) | ||||
Loss on disposal of property and equipment | 517 | 244 | |||||
Loss on extinguishment of debt | 11,683 | 12,458 | |||||
Call premium payment from debt extinguishment | (9,300 | ) | — | ||||
Increase in cash surrender value of life insurance | (2,223 | ) | (679 | ) | |||
Share-based compensation expense | 4,023 | 219 | |||||
Changes in operating assets and liabilities: | |||||||
Loans receivable | (206,147 | ) | (150,450 | ) | |||
Prepaid expenses and other assets | 6,092 | 2,974 | |||||
Accounts payable and accrued liabilities | (2,292 | ) | (6,146 | ) | |||
Deferred revenue | (1,215 | ) | (698 | ) | |||
Income taxes payable | 26,727 | 3,780 | |||||
Income taxes receivable | (18,436 | ) | 3,200 | ||||
Deferred rent | (31 | ) | 31 | ||||
Accrued Interest | (3,284 | ) | — | ||||
Other liabilities | 922 | 13,876 | |||||
Net cash provided by operating activities | 33,895 | 49,774 | |||||
Cash flows from investing activities | |||||||
Purchase of property, equipment and software | (3,055 | ) | (6,828 | ) | |||
Cash paid for Cognical Holdings preferred shares | (958 | ) | (4,975 | ) | |||
Changes in restricted cash | (411 | ) | (4,437 | ) | |||
Net cash used in investing activities | (4,424 | ) | (16,240 | ) | |||
Cash flows from financing activities | |||||||
Net proceeds from issuance of common stock | 12,431 | — | |||||
Proceeds from exercise of stock options | 39 | — | |||||
Proceeds from Non-Recourse U.S. SPV facility | 13,000 | 41,130 | |||||
Payments on Non-Recourse U.S. SPV facility | (19,163 | ) | (25,142 | ) | |||
Proceeds from issuance of 12.00% Senior Secured Notes | — | 461,329 | |||||
Payments on 10.75% Senior Secured Notes | — | (426,034 | ) | ||||
Payments on 12.00% Senior Secured Notes | (77,500 | ) | — | ||||
Payments on 12.00% Senior Cash Pay Notes | — | (125,000 | ) | ||||
Debt issuance costs paid | (168 | ) | (14,002 | ) | |||
Proceeds from credit facilities | 18,798 | — | |||||
Payments on credit facilities | (18,798 | ) | — | ||||
Dividends paid to stockholders | — | (28,000 | ) | ||||
Net cash used in financing activities | (71,361 | ) | (115,719 | ) | |||
Effect of exchange rate changes on cash | (5,379 | ) | 2,440 | ||||
Net decrease in cash | (47,269 | ) | (79,745 | ) | |||
Cash at beginning of period | 162,374 | 193,525 | |||||
Cash at end of period | $ | 115,105 | $ | 113,780 |
(in thousands) | June 30, 2018 | December 31, 2017 | |||||
Assets | |||||||
Restricted Cash | $ | 7,274 | $ | 6,871 | |||
Loans receivable less allowance for loan losses | 171,332 | 167,706 | |||||
Total Assets | $ | 178,606 | $ | 174,577 | |||
Liabilities | |||||||
Accounts payable and accrued liabilities | $ | 14 | $ | 12 | |||
Accrued interest | 1,237 | 1,266 | |||||
Long-term debt | 114,774 | 120,402 | |||||
Total Liabilities | $ | 116,025 | $ | 121,680 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(in thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Unsecured Installment | $ | 123,473 | $ | 105,149 | $ | 256,419 | $ | 214,580 | |||||||
Secured Installment | 25,777 | 23,173 | 52,633 | 46,842 | |||||||||||
Open-End | 27,222 | 15,805 | 54,445 | 33,712 | |||||||||||
Single-Pay | 61,602 | 63,241 | 125,307 | 127,031 | |||||||||||
Ancillary | 10,909 | 9,576 | 21,937 | 19,359 | |||||||||||
Total revenue | $ | 248,983 | $ | 216,944 | $ | 510,741 | $ | 441,524 |
June 30, 2018 | ||||||||||||||||
(in thousands) | Single-Pay | Unsecured Installment | Secured Installment | Open-End | Total | |||||||||||
Current loans receivable | $ | 89,574 | $ | 139,142 | $ | 69,788 | $ | 91,034 | $ | 389,538 | ||||||
Delinquent loans receivable | — | 40,272 | 14,817 | — | 55,089 | |||||||||||
Total loans receivable | 89,574 | 179,414 | 84,605 | 91,034 | 444,627 | |||||||||||
Less: allowance for losses | (4,372 | ) | (35,279 | ) | (10,386 | ) | (9,717 | ) | (59,754 | ) | ||||||
Loans receivable, net | $ | 85,202 | $ | 144,135 | $ | 74,219 | $ | 81,317 | $ | 384,873 |
June 30, 2018 | ||||||||||
(in thousands) | Unsecured Installment | Secured Installment | Total | |||||||
Delinquent loans receivable | ||||||||||
0-30 days past due | $ | 17,052 | $ | 7,551 | $ | 24,603 | ||||
31-60 days past due | 11,886 | 3,892 | 15,778 | |||||||
61-90 days past due | 11,334 | 3,374 | 14,708 | |||||||
Total delinquent loans receivable | $ | 40,272 | $ | 14,817 | $ | 55,089 |
December 31, 2017 | ||||||||||||||||
(in thousands) | Single-Pay | Unsecured Installment | Secured Installment | Open-End | Total | |||||||||||
Current loans receivable | $ | 99,400 | $ | 151,343 | $ | 73,165 | $ | 47,949 | $ | 371,857 | ||||||
Delinquent loans receivable | — | 44,963 | 16,017 | — | 60,980 | |||||||||||
Total loans receivable | 99,400 | 196,306 | 89,182 | 47,949 | 432,837 | |||||||||||
Less: allowance for losses | (5,916 | ) | (43,754 | ) | (13,472 | ) | (6,426 | ) | (69,568 | ) | ||||||
Loans receivable, net | $ | 93,484 | $ | 152,552 | $ | 75,710 | $ | 41,523 | $ | 363,269 |
December 31, 2017 | ||||||||||
(in thousands) | Unsecured Installment | Secured Installment | Total | |||||||
Delinquent loans receivable | ||||||||||
0-30 days past due | $ | 18,358 | $ | 8,116 | $ | 26,474 | ||||
31-60 days past due | 12,836 | 3,628 | 16,464 | |||||||
61-90 days past due | 13,769 | 4,273 | 18,042 | |||||||
Total delinquent loans receivable | $ | 44,963 | $ | 16,017 | $ | 60,980 |
June 30, 2018 | ||||||||||
(in thousands) | Unsecured Installment | Secured Installment | Total | |||||||
Current loans receivable guaranteed by the Company | $ | 56,055 | $ | 2,379 | $ | 58,434 | ||||
Delinquent loans receivable guaranteed by the Company | 10,318 | 428 | 10,746 | |||||||
Total loans receivable guaranteed by the Company | 66,373 | 2,807 | 69,180 | |||||||
Less: CSO guarantee liability | (11,193 | ) | (426 | ) | (11,619 | ) | ||||
Loans receivable guaranteed by the Company, net | $ | 55,180 | $ | 2,381 | $ | 57,561 |
June 30, 2018 | ||||||||||
(in thousands) | Unsecured Installment | Secured Installment | Total | |||||||
Delinquent loans receivable | ||||||||||
0-30 days past due | $ | 8,835 | $ | 362 | $ | 9,197 | ||||
31-60 days past due | 1,043 | 39 | 1,082 | |||||||
61-90 days past due | 440 | 27 | 467 | |||||||
Total delinquent loans receivable | $ | 10,318 | $ | 428 | $ | 10,746 |
December 31, 2017 | ||||||||||
(in thousands) | Unsecured Installment | Secured Installment | Total | |||||||
Current loans receivable guaranteed by the Company | $ | 62,676 | $ | 3,098 | $ | 65,774 | ||||
Delinquent loans receivable guaranteed by the Company | 12,480 | 537 | 13,017 | |||||||
Total loans receivable guaranteed by the Company | 75,156 | 3,635 | 78,791 | |||||||
Less: CSO guarantee liability | (17,073 | ) | (722 | ) | (17,795 | ) | ||||
Loans receivable guaranteed by the Company, net | $ | 58,083 | $ | 2,913 | $ | 60,996 |
December 31, 2017 | ||||||||||
(in thousands) | Unsecured Installment | Secured Installment | Total | |||||||
Delinquent loans receivable | ||||||||||
0-30 days past due | $ | 10,477 | $ | 459 | $ | 10,936 | ||||
31-60 days past due | 1,364 | 41 | 1,405 | |||||||
61-90 days past due | 639 | 37 | 676 | |||||||
Total delinquent loans receivable | $ | 12,480 | $ | 537 | $ | 13,017 |
Three Months Ended June 30, 2018 | ||||||||||||||||||
(in thousands) | Single-Pay | Unsecured Installment | Secured Installment | Open-End | Other | Total | ||||||||||||
Balance, beginning of period | $ | 4,485 | $ | 37,916 | $ | 11,639 | $ | 6,846 | $ | — | $ | 60,886 | ||||||
Charge-offs | (44,817 | ) | (36,102 | ) | (11,082 | ) | (23,807 | ) | (593 | ) | (116,401 | ) | ||||||
Recoveries | 30,274 | 6,368 | 2,296 | 11,883 | 40 | 50,861 | ||||||||||||
Net charge-offs | (14,543 | ) | (29,734 | ) | (8,786 | ) | (11,924 | ) | (553 | ) | (65,540 | ) | ||||||
Provision for losses | 14,527 | 27,434 | 7,533 | 14,848 | 553 | 64,895 | ||||||||||||
Effect of foreign currency translation | (97 | ) | (337 | ) | — | (53 | ) | — | (487 | ) | ||||||||
Balance, end of period | $ | 4,372 | $ | 35,279 | $ | 10,386 | $ | 9,717 | $ | — | $ | 59,754 | ||||||
Allowance for loan losses as a percentage of gross loan receivables | 4.9 | % | 19.7 | % | 12.3 | % | 10.7 | % | N/A | 13.4 | % |
Three Months Ended June 30, 2018 | |||||||||
(in thousands) | Unsecured Installment | Secured Installment | Total | ||||||
Balance, beginning of period | $ | 9,886 | $ | 526 | $ | 10,412 | |||
Charge-offs | (33,017 | ) | (993 | ) | (34,010 | ) | |||
Recoveries | 7,350 | 776 | 8,126 | ||||||
Net charge-offs | (25,667 | ) | (217 | ) | (25,884 | ) | |||
Provision for losses | 26,974 | 117 | 27,091 | ||||||
Balance, end of period | $ | 11,193 | $ | 426 | $ | 11,619 |
Three Months Ended June 30, 2018 | ||||||||||||||||||
(in thousands) | Single-Pay | Unsecured Installment | Secured Installment | Open-End | Other | Total | ||||||||||||
Balance, beginning of period | $ | 4,485 | $ | 47,802 | $ | 12,165 | $ | 6,846 | $ | — | $ | 71,298 | ||||||
Charge-offs | (44,817 | ) | (69,119 | ) | (12,075 | ) | (23,807 | ) | (593 | ) | (150,411 | ) | ||||||
Recoveries | 30,274 | 13,718 | 3,072 | 11,883 | 40 | 58,987 | ||||||||||||
Net charge-offs | (14,543 | ) | (55,401 | ) | (9,003 | ) | (11,924 | ) | (553 | ) | (91,424 | ) | ||||||
Provision for losses | 14,527 | 54,408 | 7,650 | 14,848 | 553 | 91,986 | ||||||||||||
Effect of foreign currency translation | (97 | ) | (337 | ) | — | (53 | ) | — | (487 | ) | ||||||||
Balance, end of period | $ | 4,372 | $ | 46,472 | $ | 10,812 | $ | 9,717 | $ | — | $ | 71,373 |
Three Months Ended June 30, 2017 | ||||||||||||||||||
(in thousands) | Single-Pay | Unsecured Installment | Secured Installment | Open-End | Other | Total | ||||||||||||
Balance, beginning of period | $ | 4,719 | $ | 42,040 | $ | 20,270 | $ | 4,572 | $ | — | $ | 71,601 | ||||||
Charge-offs | (44,020 | ) | (24,574 | ) | (6,941 | ) | (8,447 | ) | (1,261 | ) | (85,243 | ) | ||||||
Recoveries | 30,190 | 5,716 | 1,787 | 4,104 | 777 | 42,574 | ||||||||||||
Net charge-offs | (13,830 | ) | (18,858 | ) | (5,154 | ) | (4,343 | ) | (484 | ) | (42,669 | ) | ||||||
Provision for losses | 14,284 | 17,845 | 4,081 | 4,298 | 484 | 40,992 | ||||||||||||
Effect of foreign currency translation | 140 | 379 | (1 | ) | (4 | ) | — | 514 | ||||||||||
Balance, end of period | $ | 5,313 | $ | 41,406 | $ | 19,196 | $ | 4,523 | $ | — | $ | 70,438 | ||||||
Allowance for loan losses as a percentage of gross loan receivables | 5.8 | % | 26.5 | % | 25.2 | % | 16.9 | % | N/A | 20.1 | % |
Three Months Ended June 30, 2017 | ||||||||||||
(in thousands) | Single-Pay | Unsecured Installment | Secured Installment | Total | ||||||||
Balance, beginning of period | $ | 14 | $ | 18,482 | $ | 1,287 | $ | 19,783 | ||||
Charge-offs | (373 | ) | (33,166 | ) | (2,141 | ) | (35,680 | ) | ||||
Recoveries | 354 | 5,857 | 814 | 7,025 | ||||||||
Net charge-offs | (19 | ) | (27,309 | ) | (1,327 | ) | (28,655 | ) | ||||
Provision for losses | 5 | 23,575 | 874 | 24,454 | ||||||||
Balance, end of period | $ | — | $ | 14,748 | $ | 834 | $ | 15,582 |
Three Months Ended June 30, 2017 | ||||||||||||||||||
(in thousands) | Single-Pay | Unsecured Installment | Secured Installment | Open-End | Other | Total | ||||||||||||
Balance, beginning of period | $ | 4,733 | $ | 60,522 | $ | 21,557 | $ | 4,572 | $ | — | $ | 91,384 | ||||||
Charge-offs | (44,393 | ) | (57,740 | ) | (9,082 | ) | (8,447 | ) | (1,261 | ) | (120,923 | ) | ||||||
Recoveries | 30,544 | 11,573 | 2,601 | 4,104 | 777 | 49,599 | ||||||||||||
Net charge-offs | (13,849 | ) | (46,167 | ) | (6,481 | ) | (4,343 | ) | (484 | ) | (71,324 | ) | ||||||
Provision for losses | 14,289 | 41,420 | 4,955 | 4,298 | 484 | 65,446 | ||||||||||||
Effect of foreign currency translation | 140 | 379 | (1 | ) | (4 | ) | — | 514 | ||||||||||
Balance, end of period | $ | 5,313 | $ | 56,154 | $ | 20,030 | $ | 4,523 | $ | — | $ | 86,020 |
Six Months Ended June 30, 2018 | ||||||||||||||||||
(in thousands) | Single-Pay | Unsecured Installment | Secured Installment | Open-End | Other | Total | ||||||||||||
Balance, beginning of period | $ | 5,916 | $ | 43,754 | $ | 13,472 | $ | 6,426 | $ | — | $ | 69,568 | ||||||
Charge-offs | (92,524 | ) | (75,479 | ) | (22,567 | ) | (44,156 | ) | (1,268 | ) | (235,994 | ) | ||||||
Recoveries | 65,283 | 12,335 | 5,162 | 21,260 | 87 | 104,127 | ||||||||||||
Net charge-offs | (27,241 | ) | (63,144 | ) | (17,405 | ) | (22,896 | ) | (1,181 | ) | (131,867 | ) | ||||||
Provision for losses | 25,829 | 54,911 | 14,319 | 26,276 | 1,181 | 122,516 | ||||||||||||
Effect of foreign currency translation | (132 | ) | (242 | ) | — | (89 | ) | — | (463 | ) | ||||||||
Balance, end of period | $ | 4,372 | $ | 35,279 | $ | 10,386 | $ | 9,717 | $ | — | $ | 59,754 | ||||||
Allowance for loan losses as a percentage of gross loan receivables | 4.9 | % | 19.7 | % | 12.3 | % | 10.7 | % | N/A | 13.4 | % |
Six Months Ended June 30, 2018 | |||||||||
(in thousands) | Unsecured Installment | Secured Installment | Total | ||||||
Balance, beginning of period | $ | 17,073 | $ | 722 | $ | 17,795 | |||
Charge-offs | (74,736 | ) | (2,212 | ) | (76,948 | ) | |||
Recoveries | 18,326 | 1,945 | 20,271 | ||||||
Net charge-offs | (56,410 | ) | (267 | ) | (56,677 | ) | |||
Provision for losses | 50,530 | (29 | ) | 50,501 | |||||
Balance, end of period | $ | 11,193 | $ | 426 | $ | 11,619 |
Six Months Ended June 30, 2018 | ||||||||||||||||||
(in thousands) | Single-Pay | Unsecured Installment | Secured Installment | Open-End | Other | Total | ||||||||||||
Balance, beginning of period | $ | 5,916 | $ | 60,827 | $ | 14,194 | $ | 6,426 | $ | — | $ | 87,363 | ||||||
Charge-offs | (92,524 | ) | (150,215 | ) | (24,779 | ) | (44,156 | ) | (1,268 | ) | (312,942 | ) | ||||||
Recoveries | 65,283 | 30,661 | 7,107 | 21,260 | 87 | 124,398 | ||||||||||||
Net charge-offs | (27,241 | ) | (119,554 | ) | (17,672 | ) | (22,896 | ) | (1,181 | ) | (188,544 | ) | ||||||
Provision for losses | 25,829 | 105,441 | 14,290 | 26,276 | 1,181 | 173,017 | ||||||||||||
Effect of foreign currency translation | (132 | ) | (242 | ) | — | (89 | ) | — | (463 | ) | ||||||||
Balance, end of period | $ | 4,372 | $ | 46,472 | $ | 10,812 | $ | 9,717 | $ | — | $ | 71,373 |
Six Months Ended June 30, 2017 | ||||||||||||||||||
(in thousands) | Single-Pay | Unsecured Installment | Secured Installment | Open-End | Other | Total | ||||||||||||
Balance, beginning of period | $ | 5,501 | $ | 17,775 | $ | 10,737 | $ | 5,179 | $ | — | $ | 39,192 | ||||||
Charge-offs | (88,905 | ) | (24,574 | ) | (6,941 | ) | (17,676 | ) | (2,400 | ) | (140,496 | ) | ||||||
Recoveries | 63,341 | 10,634 | 4,815 | 9,457 | 1,529 | 89,776 | ||||||||||||
Net charge-offs | (25,564 | ) | (13,940 | ) | (2,126 | ) | (8,219 | ) | (871 | ) | (50,720 | ) | ||||||
Provision for losses | 25,178 | 37,154 | 10,585 | 7,563 | 871 | 81,351 | ||||||||||||
Effect of foreign currency translation | 198 | 417 | — | — | — | 615 | ||||||||||||
Balance, end of period | $ | 5,313 | $ | 41,406 | $ | 19,196 | $ | 4,523 | $ | — | $ | 70,438 | ||||||
Allowance for loan losses as a percentage of gross loan receivables | 5.8 | % | 26.5 | % | 25.2 | % | 16.9 | % | N/A | 20.1 | % |
Six Months Ended June 30, 2017 | ||||||||||||
(in thousands) | Single-Pay | Unsecured Installment | Secured Installment | Total | ||||||||
Balance, beginning of period | $ | 274 | $ | 15,630 | $ | 1,148 | $ | 17,052 | ||||
Charge-offs | (1,886 | ) | (61,122 | ) | (5,303 | ) | (68,311 | ) | ||||
Recoveries | 1,102 | 16,725 | 3,183 | 21,010 | ||||||||
Net charge-offs | (784 | ) | (44,397 | ) | (2,120 | ) | (47,301 | ) | ||||
Provision for losses | 510 | 43,515 | 1,806 | 45,831 | ||||||||
Balance, end of period | $ | — | $ | 14,748 | $ | 834 | $ | 15,582 |
Six Months Ended June 30, 2017 | ||||||||||||||||||
(in thousands) | Single-Pay | Unsecured Installment | Secured Installment | Open-End | Other | Total | ||||||||||||
Balance, beginning of period | $ | 5,775 | $ | 33,405 | $ | 11,885 | $ | 5,179 | $ | — | $ | 56,244 | ||||||
Charge-offs | (90,791 | ) | (85,696 | ) | (12,244 | ) | (17,676 | ) | (2,400 | ) | (208,807 | ) | ||||||
Recoveries | 64,443 | 27,359 | 7,998 | 9,457 | 1,529 | 110,786 | ||||||||||||
Net charge-offs | (26,348 | ) | (58,337 | ) | (4,246 | ) | (8,219 | ) | (871 | ) | (98,021 | ) | ||||||
Provision for losses | 25,688 | 80,669 | 12,391 | 7,563 | 871 | 127,182 | ||||||||||||
Effect of foreign currency translation | 198 | 417 | — | — | — | 615 | ||||||||||||
Balance, end of period | $ | 5,313 | $ | 56,154 | $ | 20,030 | $ | 4,523 | $ | — | $ | 86,020 |
(in thousands) | June 30, 2018 | December 31, 2017 | ||||||
2017 Senior Secured Notes (due 2022) | $ | 512,136 | $ | 585,823 | ||||
Non-Recourse U.S. SPV Facility | 114,697 | 120,402 | ||||||
Senior Revolver | — | — | ||||||
Cash Money Revolving Credit Facility | — | — | ||||||
Long-term debt | $ | 626,833 | $ | 706,225 |
Units | Weighted Average Grant Date Fair Value | |||||
December 31, 2017 | 1,516,241 | $ | 14.00 | |||
Granted | 90,372 | 17.46 | ||||
Vested | (49,994 | ) | 14.20 | |||
Forfeited | — | — | ||||
June 30, 2018 | 1,556,619 | $ | 14.19 |
Estimated Fair Value | |||||||||||||||
(dollars in thousands) | Carrying Value June 30, 2018 | Level 1 | Level 2 | Level 3 | June 30, 2018 | ||||||||||
Financial assets: | |||||||||||||||
Cash | $ | 115,105 | $ | 115,105 | $ | — | $ | — | $ | 115,105 | |||||
Restricted cash | 12,448 | 12,448 | — | — | 12,448 | ||||||||||
Loans receivable, net | 384,873 | — | — | 384,873 | 384,873 | ||||||||||
Investment in Cognical | 6,600 | — | — | 6,600 | 6,600 | ||||||||||
Financial liabilities: | |||||||||||||||
Credit services organization guarantee liability | $ | 11,619 | $ | — | $ | — | $ | 11,619 | $ | 11,619 | |||||
Senior secured notes | 512,136 | — | — | 553,308 | 553,308 | ||||||||||
Non-Recourse U.S. SPV facility | 114,697 | — | — | 118,427 | 118,427 |
Estimated Fair Value | |||||||||||||||
(dollars in thousands) | Carrying Value December 31, 2017 | Level 1 | Level 2 | Level 3 | December 31, 2017 | ||||||||||
Financial assets: | |||||||||||||||
Cash | $ | 162,374 | $ | 162,374 | $ | — | $ | — | $ | 162,374 | |||||
Restricted cash | 12,117 | 12,117 | — | — | 12,117 | ||||||||||
Loans receivable, net | 363,269 | — | — | 363,269 | 363,269 | ||||||||||
Investment in Cognical | 5,600 | — | — | 5,600 | 5,600 | ||||||||||
Financial liabilities: | |||||||||||||||
Credit services organization guarantee liability | 17,795 | — | — | 17,795 | 17,795 | ||||||||||
2017 Senior Secured notes | 585,823 | — | — | 663,475 | 663,475 | ||||||||||
Non-Recourse U.S. SPV facility | 120,402 | — | — | 124,590 | 124,590 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Basic: (1) | |||||||||||||||
Net income | $ | 15,975 | $ | 16,342 | $ | 39,267 | $ | 32,980 | |||||||
Weight average common shares | 45,650 | 37,895 | 45,578 | 37,895 | |||||||||||
Basic earnings per share | $ | 0.35 | $ | 0.43 | $ | 0.86 | $ | 0.87 | |||||||
(1) We have adjusted the share and per share information to reflect the 36-to-1 split of our common stock, which occurred In November 2017. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Diluted: (1) | |||||||||||||||
Net income | $ | 15,975 | $ | 16,342 | $ | 39,267 | $ | 32,980 | |||||||
Weighted average common shares - basic | 45,650 | 37,895 | 45,578 | 37,895 | |||||||||||
Dilutive effect of stock options and restricted stock units | 2,346 | 1,092 | 2,179 | 1,088 | |||||||||||
Weighted average common shares - diluted | 47,996 | 38,987 | 47,757 | 38,983 | |||||||||||
Diluted earnings per share | $ | 0.33 | $ | 0.42 | $ | 0.82 | $ | 0.85 | |||||||
(1) We have adjusted the share and per share information to reflect the 36-to-1 split of our common stock, which occurred in November 2017. |
Six Months Ended June 30, | |||||||
(dollars in thousands) | 2018 | 2017 | |||||
Cash paid for: | |||||||
Interest | $ | 44,250 | $ | 25,788 | |||
Income taxes | 11,621 | 14,594 | |||||
Non-cash investing activities: | |||||||
Property and equipment accrued in accounts payable | $ | 595 | $ | 40 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(dollars in thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Revenues by segment: | |||||||||||||||
U.S. | $ | 190,126 | $ | 163,764 | $ | 394,719 | $ | 338,086 | |||||||
Canada | 47,043 | 43,595 | 93,293 | 85,161 | |||||||||||
U.K. | 11,814 | 9,585 | 22,729 | 18,277 | |||||||||||
Consolidated revenue | $ | 248,983 | $ | 216,944 | $ | 510,741 | $ | 441,524 | |||||||
Gross margin by segment: | |||||||||||||||
U.S. | $ | 64,048 | $ | 63,119 | $ | 155,392 | $ | 140,251 | |||||||
Canada | 13,300 | 15,962 | 27,802 | 30,262 | |||||||||||
U.K. | 3,064 | 2,921 | 6,463 | 6,394 | |||||||||||
Consolidated gross margin | $ | 80,412 | $ | 82,002 | $ | 189,657 | $ | 176,907 | |||||||
Expenditures for long-lived assets by segment: | |||||||||||||||
U.S. | $ | 1,195 | $ | 2,976 | $ | 1,983 | $ | 4,648 | |||||||
Canada | 220 | 61 | 974 | 1,352 | |||||||||||
U.K. | 31 | 698 | 98 | 828 | |||||||||||
Consolidated expenditures for long-lived assets | $ | 1,446 | $ | 3,735 | $ | 3,055 | $ | 6,828 |
(dollars in thousands) | June 30, 2018 | December 31, 2017 | |||||
U.S. | $ | 298,546 | $ | 308,696 | |||
Canada | 122,042 | 104,551 | |||||
U.K. | 24,039 | 19,590 | |||||
Total gross loans receivable | $ | 444,627 | $ | 432,837 |
(dollars in thousands) | June 30, 2018 | December 31, 2017 | |||||
U.S. | $ | 49,087 | $ | 52,627 | |||
Canada | 29,957 | 32,924 | |||||
U.K. | 1,376 | 1,535 | |||||
Total net long-lived assets | $ | 80,420 | $ | 87,086 |
(i) | CFTC as the issuer of the Senior Secured Notes; |
(ii) | CURO Intermediate as the issuer of the 10.75% senior secured notes that were redeemed in February 2017; |
(iii) | Our subsidiary guarantors, which are comprised of our domestic subsidiaries, excluding CFTC, SPV, and CURO Intermediate (the “Subsidiary Guarantors”), on a consolidated basis, which are 100% owned by CURO, and which are guarantors of the Senior Secured Notes issued in February 2017 and the 10.75% senior secured notes redeemed in February 2017; |
(iv) | Our other subsidiaries on a consolidated basis, which are not guarantors of the Senior Secured Notes (the “Subsidiary Non-Guarantors”) |
(v) | Consolidating and eliminating entries representing adjustments to: |
a. | eliminate intercompany transactions between or among us, the Subsidiary Guarantors and the Subsidiary Non-Guarantors; and |
b. | eliminate the investments in our subsidiaries; |
(vi) | Us and our subsidiaries on a consolidated basis. |
June 30, 2018 | ||||||||||||||||||||||||||||||
(dollars in thousands) | CFTC | CURO Intermediate | Subsidiary Guarantors | Subsidiary Non-Guarantors | SPV Subs | Eliminations | CFTC Consolidated | CURO | Eliminations | CURO Consolidated | ||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||
Cash | $ | — | $ | — | $ | 69,013 | $ | 46,092 | $ | — | $ | — | $ | 115,105 | $ | — | $ | — | $ | 115,105 | ||||||||||
Restricted cash | — | — | 1,679 | 3,495 | 7,274 | — | 12,448 | — | — | 12,448 | ||||||||||||||||||||
Loans receivable, net | — | — | 81,387 | 132,154 | 171,332 | — | 384,873 | — | — | 384,873 | ||||||||||||||||||||
Deferred income taxes | — | — | — | 3,697 | — | — | 3,697 | — | — | 3,697 | ||||||||||||||||||||
Income taxes receivable | — | — | — | 623 | — | — | 623 | — | — | 623 | ||||||||||||||||||||
Prepaid expenses and other | — | — | 32,921 | 3,376 | — | — | 36,297 | — | — | 36,297 | ||||||||||||||||||||
Property and equipment, net | — | — | 49,087 | 31,333 | — | — | 80,420 | — | — | 80,420 | ||||||||||||||||||||
Goodwill | — | — | 91,131 | 52,622 | — | — | 143,753 | — | — | 143,753 | ||||||||||||||||||||
Other intangibles, net | 15 | — | 4,582 | 26,228 | — | — | 30,825 | — | — | 30,825 | ||||||||||||||||||||
Intercompany receivable | — | 38,781 | 42,511 | (20,439 | ) | — | (60,853 | ) | — | — | — | — | ||||||||||||||||||
Investment in subsidiaries | 53,213 | 1,016,398 | — | — | — | (1,069,611 | ) | — | (52,249 | ) | 52,249 | — | ||||||||||||||||||
Other | 6,608 | — | 5,230 | 971 | — | — | 12,809 | — | — | 12,809 | ||||||||||||||||||||
Total assets | $ | 59,836 | $ | 1,055,179 | $ | 377,541 | $ | 280,152 | $ | 178,606 | $ | (1,130,464 | ) | $ | 820,850 | $ | (52,249 | ) | $ | 52,249 | $ | 820,850 | ||||||||
Liabilities and Stockholder's equity: | ||||||||||||||||||||||||||||||
Accounts payable and accrued liabilities | $ | 2,334 | $ | 9 | $ | 35,755 | $ | 15,288 | $ | 14 | $ | — | $ | 53,400 | $ | 157 | $ | — | $ | 53,557 | ||||||||||
Deferred revenue | — | — | 5,488 | 5,081 | (21 | ) | — | 10,548 | — | — | 10,548 | |||||||||||||||||||
Income taxes payable | (64,622 | ) | 96,958 | (22,534 | ) | — | — | — | 9,802 | (4,327 | ) | — | 5,475 | |||||||||||||||||
Accrued interest | 20,946 | — | — | (8 | ) | 1,237 | — | 22,175 | — | — | 22,175 | |||||||||||||||||||
Payable to CURO Holdings Corp. | 38,847 | — | 62,081 | — | — | — | 100,928 | (100,928 | ) | — | — | |||||||||||||||||||
CSO guarantee liability | — | — | 11,619 | — | — | — | 11,619 | — | — | 11,619 | ||||||||||||||||||||
Deferred rent | — | — | 9,772 | 1,709 | — | — | 11,481 | — | — | 11,481 | ||||||||||||||||||||
Long-term debt (excluding current maturities) | 512,135 | — | — | (76 | ) | 114,774 | — | 626,833 | — | — | 626,833 | |||||||||||||||||||
Subordinated shareholder debt | — | — | — | 2,278 | — | — | 2,278 | — | — | 2,278 | ||||||||||||||||||||
Intercompany payable | (395,121 | ) | 895,349 | (347,983 | ) | 60,853 | (152,245 | ) | (60,853 | ) | — | — | — | — | ||||||||||||||||
Other long-term liabilities | — | — | 5,095 | 1,494 | — | — | 6,589 | — | — | 6,589 | ||||||||||||||||||||
Deferred tax liabilities | (2,434 | ) | 9,650 | 2,534 | 7,696 | — | — | 17,446 | — | — | 17,446 | |||||||||||||||||||
Total liabilities | 112,085 | 1,001,966 | (238,173 | ) | 94,315 | (36,241 | ) | (60,853 | ) | 873,099 | (105,098 | ) | — | 768,001 | ||||||||||||||||
Stockholder’s equity | (52,249 | ) | 53,213 | 615,714 | 185,837 | 214,847 | (1,069,611 | ) | (52,249 | ) | 52,849 | 52,249 | 52,849 | |||||||||||||||||
Total liabilities and stockholder’s equity | $ | 59,836 | $ | 1,055,179 | $ | 377,541 | $ | 280,152 | $ | 178,606 | $ | (1,130,464 | ) | $ | 820,850 | $ | (52,249 | ) | $ | 52,249 | $ | 820,850 |
December 31, 2017 | ||||||||||||||||||||||||||||||
(dollars in thousands) | CFTC | CURO Intermediate | Subsidiary Guarantors | Subsidiary Non-Guarantors | SPV Subs | Eliminations | CFTC Consolidated | CURO | Eliminations | CURO Consolidated | ||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||
Cash | $ | — | $ | — | $ | 117,379 | $ | 44,915 | $ | — | $ | — | $ | 162,294 | $ | 80 | $ | — | $ | 162,374 | ||||||||||
Restricted cash | — | — | 1,677 | 3,569 | 6,871 | — | 12,117 | — | — | 12,117 | ||||||||||||||||||||
Loans receivable, net | — | — | 84,912 | 110,651 | 167,706 | — | 363,269 | — | — | 363,269 | ||||||||||||||||||||
Deferred income taxes | — | 2,154 | (4,646 | ) | 3,502 | — | — | 1,010 | (238 | ) | — | 772 | ||||||||||||||||||
Income taxes receivable | — | — | — | — | — | — | — | 3,455 | — | 3,455 | ||||||||||||||||||||
Prepaid expenses and other | — | — | 38,277 | 3,353 | — | — | 41,630 | 882 | — | 42,512 | ||||||||||||||||||||
Property and equipment, net | — | — | 52,627 | 34,459 | — | — | 87,086 | — | — | 87,086 | ||||||||||||||||||||
Goodwill | — | — | 91,131 | 54,476 | — | — | 145,607 | — | — | 145,607 | ||||||||||||||||||||
Other intangibles, net | 16 | — | 5,418 | 27,335 | — | — | 32,769 | — | — | 32,769 | ||||||||||||||||||||
Intercompany receivable | — | 37,877 | 33,062 | (30,588 | ) | — | (40,351 | ) | — | — | — | — | ||||||||||||||||||
Investment in subsidiaries | (14,504 | ) | 899,371 | — | — | — | (884,867 | ) | — | (84,889 | ) | 84,889 | — | |||||||||||||||||
Other | 5,713 | — | 3,017 | 1,040 | — | — | 9,770 | — | — | 9,770 | ||||||||||||||||||||
Total assets | $ | (8,775 | ) | $ | 939,402 | $ | 422,854 | $ | 252,712 | $ | 174,577 | $ | (925,218 | ) | $ | 855,552 | $ | (80,710 | ) | $ | 84,889 | $ | 859,731 | |||||||
Liabilities and Stockholder's equity: | ||||||||||||||||||||||||||||||
Accounts payable and accrued liabilities | $ | 2,606 | $ | 13 | $ | 35,753 | $ | 15,954 | $ | 12 | $ | — | $ | 54,338 | $ | 1,454 | $ | — | $ | 55,792 | ||||||||||
Deferred revenue | — | — | 6,529 | 5,455 | — | — | 11,984 | — | — | 11,984 | ||||||||||||||||||||
Income taxes payable | (49,738 | ) | 70,231 | (18,450 | ) | 2,077 | — | — | 4,120 | — | — | 4,120 | ||||||||||||||||||
Accrued interest | 24,201 | — | — | — | 1,266 | — | 25,467 | — | — | 25,467 | ||||||||||||||||||||
Payable to CURO Holdings Corp. | 184,348 | — | (95,048 | ) | — | — | — | 89,300 | (89,300 | ) | — | — | ||||||||||||||||||
CSO guarantee liability | — | — | 17,795 | — | — | — | 17,795 | — | — | 17,795 | ||||||||||||||||||||
Deferred rent | — | — | 9,896 | 1,681 | — | — | 11,577 | — | — | 11,577 | ||||||||||||||||||||
Long-term debt | 585,823 | — | — | — | 120,402 | — | 706,225 | — | — | 706,225 | ||||||||||||||||||||
Subordinated shareholder debt | — | — | — | 2,381 | — | — | 2,381 | — | — | 2,381 | ||||||||||||||||||||
Intercompany payable | (668,536 | ) | 876,869 | (124,332 | ) | 40,351 | (84,001 | ) | (40,351 | ) | — | — | — | — | ||||||||||||||||
Other long-term liabilities | — | — | 3,969 | 1,799 | — | — | 5,768 | — | — | 5,768 | ||||||||||||||||||||
Deferred tax liabilities | (2,590 | ) | 6,793 | (143 | ) | 7,426 | — | — | 11,486 | — | — | 11,486 | ||||||||||||||||||
Total liabilities | 76,114 | 953,906 | (164,031 | ) | 77,124 | 37,679 | (40,351 | ) | 940,441 | (87,846 | ) | — | 852,595 | |||||||||||||||||
Stockholder’s equity | (84,889 | ) | (14,504 | ) | 586,885 | 175,588 | 136,898 | (884,867 | ) | (84,889 | ) | 7,136 | 84,889 | 7,136 | ||||||||||||||||
Total liabilities and stockholder’s equity | $ | (8,775 | ) | $ | 939,402 | $ | 422,854 | $ | 252,712 | $ | 174,577 | $ | (925,218 | ) | $ | 855,552 | $ | (80,710 | ) | $ | 84,889 | $ | 859,731 |
Three Months Ended June 30, 2018 | ||||||||||||||||||||||||||||||
(dollars in thousands) | CFTC | CURO Intermediate | Subsidiary Guarantors | Subsidiary Non-Guarantors | SPV Subs | Eliminations | CFTC Consolidated | CURO | Eliminations | CURO Consolidated | ||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 118,034 | $ | 58,857 | $ | 72,092 | $ | 248,983 | $ | — | $ | — | $ | 248,983 | ||||||||||||
Provision for losses | — | — | 46,320 | 19,999 | 25,667 | 91,986 | — | — | 91,986 | |||||||||||||||||||||
Net revenue | — | — | 71,714 | 38,858 | 46,425 | — | 156,997 | — | — | 156,997 | ||||||||||||||||||||
Cost of providing services: | ||||||||||||||||||||||||||||||
Salaries and benefits | — | — | 18,070 | 8,837 | — | — | 26,907 | — | — | 26,907 | ||||||||||||||||||||
Occupancy | — | — | 7,643 | 5,677 | — | — | 13,320 | — | — | 13,320 | ||||||||||||||||||||
Office | — | — | 4,247 | 1,830 | — | — | 6,077 | — | — | 6,077 | ||||||||||||||||||||
Other costs of providing services | — | — | 11,254 | 1,007 | 466 | — | 12,727 | — | — | 12,727 | ||||||||||||||||||||
Advertising | — | — | 12,409 | 5,145 | — | — | 17,554 | — | — | 17,554 | ||||||||||||||||||||
Total cost of providing services | — | — | 53,623 | 22,496 | 466 | — | 76,585 | — | — | 76,585 | ||||||||||||||||||||
Gross margin | — | — | 18,091 | 16,362 | 45,959 | — | 80,412 | — | — | 80,412 | ||||||||||||||||||||
Operating (income) expense: | ||||||||||||||||||||||||||||||
Corporate, district and other | 458 | 18 | 25,383 | 10,434 | 46 | — | 36,339 | 2,316 | — | 38,655 | ||||||||||||||||||||
Intercompany management fee | — | — | (6,920 | ) | 3,281 | 3,639 | — | — | — | — | — | |||||||||||||||||||
Interest expense | 16,585 | — | (60 | ) | — | 3,940 | — | 20,465 | — | — | 20,465 | |||||||||||||||||||
Loss on extinguishment of debt | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Intercompany interest (income) expense | — | (904 | ) | (180 | ) | 1,084 | — | — | — | — | — | — | ||||||||||||||||||
Total operating expense | 17,043 | (886 | ) | 18,223 | 14,799 | 7,625 | — | 56,804 | 2,316 | — | 59,120 | |||||||||||||||||||
Net income (loss) before income taxes | (17,043 | ) | 886 | (132 | ) | 1,563 | 38,334 | — | 23,608 | (2,316 | ) | — | 21,292 | |||||||||||||||||
Provision for income tax expense (benefit) | (5,418 | ) | 13,668 | (4,458 | ) | 2,101 | — | — | 5,893 | (576 | ) | — | 5,317 | |||||||||||||||||
Net income (loss) | (11,625 | ) | (12,782 | ) | 4,326 | (538 | ) | 38,334 | — | 17,715 | (1,740 | ) | — | 15,975 | ||||||||||||||||
Equity in net income (loss) of subsidiaries: | ||||||||||||||||||||||||||||||
CFTC | — | — | — | — | — | — | — | 17,715 | (17,715 | ) | — | |||||||||||||||||||
CURO Intermediate | (12,782 | ) | — | — | — | — | 12,782 | — | — | — | — | |||||||||||||||||||
Guarantor Subsidiaries | 4,326 | — | — | — | — | (4,326 | ) | — | — | — | — | |||||||||||||||||||
Non-Guarantor Subsidiaries | (538 | ) | — | — | — | — | 538 | — | — | — | — | |||||||||||||||||||
SPV Subs | 38,334 | — | — | — | — | (38,334 | ) | — | — | — | — | |||||||||||||||||||
Net income (loss) attributable to CURO | $ | 17,715 | $ | (12,782 | ) | $ | 4,326 | $ | (538 | ) | $ | 38,334 | $ | (29,340 | ) | $ | 17,715 | $ | 15,975 | $ | (17,715 | ) | $ | 15,975 |
Three Months Ended June 30, 2017 | ||||||||||||||||||||||||||||||
(dollars in thousands) | CFTC | CURO Intermediate | Subsidiary Guarantors | Subsidiary Non-Guarantors | SPV Subs | Eliminations | CFTC Consolidated | CURO | Eliminations | CURO Consolidated | ||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 102,189 | $ | 53,180 | $ | 61,575 | $ | — | $ | 216,944 | $ | — | $ | — | $ | 216,944 | ||||||||||
Provision for losses | — | — | 36,079 | 13,489 | 15,878 | — | 65,446 | — | — | 65,446 | ||||||||||||||||||||
Net revenue | — | — | 66,110 | 39,691 | 45,697 | — | 151,498 | — | — | 151,498 | ||||||||||||||||||||
Cost of providing services: | ||||||||||||||||||||||||||||||
Salaries and benefits | — | — | 17,736 | 8,564 | — | — | 26,300 | — | — | 26,300 | ||||||||||||||||||||
Occupancy | — | — | 7,791 | 5,720 | — | — | 13,511 | — | — | 13,511 | ||||||||||||||||||||
Office | — | — | 3,721 | 1,215 | — | — | 4,936 | — | — | 4,936 | ||||||||||||||||||||
Other store operating expenses | — | — | 11,513 | 1,566 | 29 | — | 13,108 | — | — | 13,108 | ||||||||||||||||||||
Advertising | — | — | 7,898 | 3,743 | — | — | 11,641 | — | — | 11,641 | ||||||||||||||||||||
Total cost of providing services | — | — | 48,659 | 20,808 | 29 | — | 69,496 | — | — | 69,496 | ||||||||||||||||||||
Gross Margin | — | — | 17,451 | 18,883 | 45,668 | — | 82,002 | — | — | 82,002 | ||||||||||||||||||||
Operating (income) expense: | ||||||||||||||||||||||||||||||
Corporate, district and other | 2,447 | (78 | ) | 21,484 | 8,563 | 4,067 | — | 36,483 | 74 | — | 36,557 | |||||||||||||||||||
Intercompany management fee | — | — | (3,865 | ) | 3,865 | — | — | — | — | — | — | |||||||||||||||||||
Interest expense | 15,174 | — | — | 61 | 3,249 | — | 18,484 | — | — | 18,484 | ||||||||||||||||||||
Intercompany interest (income) expense | — | (1,042 | ) | 1,691 | 1,207 | (1,856 | ) | — | — | — | — | — | ||||||||||||||||||
Total operating expense | 17,621 | (1,120 | ) | 19,310 | 13,696 | 5,460 | — | 54,967 | 74 | — | 55,041 | |||||||||||||||||||
Net (loss) income before income taxes | (17,621 | ) | 1,120 | (1,859 | ) | 5,187 | 40,208 | — | 27,035 | (74 | ) | — | 26,961 | |||||||||||||||||
Provision for income tax (benefit) expense | (6,166 | ) | 17,560 | (3,072 | ) | 2,389 | — | — | 10,711 | (92 | ) | — | 10,619 | |||||||||||||||||
Net income (loss) | (11,455 | ) | (16,440 | ) | 1,213 | 2,798 | 40,208 | — | 16,324 | 18 | — | 16,342 | ||||||||||||||||||
Equity in net income (loss) of subsidiaries: | ||||||||||||||||||||||||||||||
CFTC | — | — | — | — | — | — | — | 16,324 | (16,324 | ) | — | |||||||||||||||||||
CURO Intermediate | (16,440 | ) | — | — | — | — | 16,440 | — | — | — | — | |||||||||||||||||||
Guarantor Subsidiaries | 1,213 | — | — | — | — | (1,213 | ) | — | — | — | — | |||||||||||||||||||
Non-Guarantor Subsidiaries | 2,798 | — | — | — | — | (2,798 | ) | — | — | — | — | |||||||||||||||||||
SPV Subs | 40,208 | — | — | — | — | (40,208 | ) | — | — | — | — | |||||||||||||||||||
Net income (loss) attributable to CURO | $ | 16,324 | $ | (16,440 | ) | $ | 1,213 | $ | 2,798 | $ | 40,208 | $ | (27,779 | ) | $ | 16,324 | $ | 16,342 | $ | (16,324 | ) | $ | 16,342 |
Six Months Ended June 30, 2018 | ||||||||||||||||||||||||||||||
(dollars in thousands) | CFTC | CURO Intermediate | Subsidiary Guarantors | Subsidiary Non-Guarantors | SPV Subs | Eliminations | CFTC Consolidated | CURO | Eliminations | CURO Consolidated | ||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 246,442 | $ | 116,022 | $ | 148,277 | $ | 510,741 | $ | — | $ | — | $ | 510,741 | ||||||||||||
Provision for losses | — | — | 82,089 | 36,697 | 54,231 | 173,017 | — | — | 173,017 | |||||||||||||||||||||
Net revenue | — | — | 164,353 | 79,325 | 94,046 | — | 337,724 | — | — | 337,724 | ||||||||||||||||||||
Cost of providing services: | ||||||||||||||||||||||||||||||
Salaries and benefits | — | — | 36,089 | 17,737 | — | — | 53,826 | — | — | 53,826 | ||||||||||||||||||||
Occupancy | — | — | 15,289 | 11,458 | — | — | 26,747 | — | — | 26,747 | ||||||||||||||||||||
Office | — | — | 9,830 | 3,227 | — | — | 13,057 | — | — | 13,057 | ||||||||||||||||||||
Other costs of providing services | — | — | 23,284 | 2,896 | 947 | — | 27,127 | — | — | 27,127 | ||||||||||||||||||||
Advertising | — | — | 17,568 | 9,742 | — | — | 27,310 | — | — | 27,310 | ||||||||||||||||||||
Total cost of providing services | — | — | 102,060 | 45,060 | 947 | — | 148,067 | — | — | 148,067 | ||||||||||||||||||||
Gross margin | — | — | 62,293 | 34,265 | 93,099 | — | 189,657 | — | — | 189,657 | ||||||||||||||||||||
Operating (income) expense: | ||||||||||||||||||||||||||||||
Corporate, district and other | 906 | 25 | 53,375 | 20,356 | 76 | — | 74,738 | 4,371 | — | 79,109 | ||||||||||||||||||||
Intercompany management fee | — | — | (13,822 | ) | 6,775 | 7,047 | — | — | — | — | — | |||||||||||||||||||
Interest expense | 34,907 | — | (172 | ) | 52 | 8,027 | — | 42,814 | — | — | 42,814 | |||||||||||||||||||
Loss on extinguishment of debt | 11,683 | — | — | — | — | — | 11,683 | — | — | 11,683 | ||||||||||||||||||||
Intercompany interest (income) expense | — | (1,784 | ) | (259 | ) | 2,043 | — | — | — | — | — | — | ||||||||||||||||||
Total operating expense | 47,496 | (1,759 | ) | 39,122 | 29,226 | 15,150 | — | 129,235 | 4,371 | — | 133,606 | |||||||||||||||||||
Net income (loss) before income taxes | (47,496 | ) | 1,759 | 23,171 | 5,039 | 77,949 | — | 60,422 | (4,371 | ) | — | 56,051 | ||||||||||||||||||
Provision for income tax expense (benefit) | (12,259 | ) | 32,165 | (6,043 | ) | 4,030 | — | — | 17,893 | (1,109 | ) | — | 16,784 | |||||||||||||||||
Net income (loss) | (35,237 | ) | (30,406 | ) | 29,214 | 1,009 | 77,949 | — | 42,529 | (3,262 | ) | — | 39,267 | |||||||||||||||||
Equity in net income (loss) of subsidiaries: | ||||||||||||||||||||||||||||||
CFTC | — | — | — | — | — | — | — | 42,529 | (42,529 | ) | — | |||||||||||||||||||
CURO Intermediate | (30,406 | ) | — | — | — | — | 30,406 | — | — | — | — | |||||||||||||||||||
Guarantor Subsidiaries | 29,214 | — | — | — | — | (29,214 | ) | — | — | — | — | |||||||||||||||||||
Non-Guarantor Subsidiaries | 1,009 | — | — | — | — | (1,009 | ) | — | — | — | — | |||||||||||||||||||
SPV Subs | 77,949 | — | — | — | — | (77,949 | ) | — | — | — | — | |||||||||||||||||||
Net income (loss) attributable to CURO | $ | 42,529 | $ | (30,406 | ) | $ | 29,214 | $ | 1,009 | $ | 77,949 | $ | (77,766 | ) | $ | 42,529 | $ | 39,267 | $ | (42,529 | ) | $ | 39,267 |
Six Months Ended June 30, 2017 | ||||||||||||||||||||||||||||||
(dollars in thousands) | CFTC | CURO Intermediate | Subsidiary Guarantors | Subsidiary Non-Guarantors | SPV Subs | Eliminations | CFTC Consolidated | CURO | Eliminations | CURO Consolidated | ||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 214,312 | $ | 103,438 | $ | 123,774 | $ | — | $ | 441,524 | $ | — | $ | — | $ | 441,524 | ||||||||||
Provision for losses | — | — | 64,136 | 26,030 | 37,016 | — | 127,182 | — | — | 127,182 | ||||||||||||||||||||
Net revenue | — | — | 150,176 | 77,408 | 86,758 | — | 314,342 | — | — | 314,342 | ||||||||||||||||||||
Cost of providing services: | ||||||||||||||||||||||||||||||
Salaries and benefits | — | — | 35,589 | 17,144 | — | — | 52,733 | — | — | 52,733 | ||||||||||||||||||||
Occupancy | — | — | 15,936 | 11,670 | — | — | 27,606 | — | — | 27,606 | ||||||||||||||||||||
Office | — | — | 7,486 | 2,318 | — | — | 9,804 | — | — | 9,804 | ||||||||||||||||||||
Other store operating expenses | — | — | 25,015 | 2,884 | 64 | — | 27,963 | — | — | 27,963 | ||||||||||||||||||||
Advertising | — | — | 12,592 | 6,737 | — | — | 19,329 | — | — | 19,329 | ||||||||||||||||||||
Total cost of providing services | — | — | 96,618 | 40,753 | 64 | — | 137,435 | — | — | 137,435 | ||||||||||||||||||||
Gross Margin | — | — | 53,558 | 36,655 | 86,694 | — | 176,907 | — | — | 176,907 | ||||||||||||||||||||
Operating (income) expense: | ||||||||||||||||||||||||||||||
Corporate, district and other | 2,977 | (70 | ) | 43,787 | 16,507 | 4,181 | — | 67,382 | 2,168 | — | 69,550 | |||||||||||||||||||
Intercompany management fee | — | — | (6,809 | ) | 6,809 | — | — | — | — | — | — | |||||||||||||||||||
Interest expense | 22,456 | 9,613 | 1 | 82 | 6,388 | — | 38,540 | 3,310 | — | 41,850 | ||||||||||||||||||||
Intercompany interest (income) expense | — | (2,190 | ) | (330 | ) | 2,520 | — | — | — | — | — | — | ||||||||||||||||||
Loss on extinguishment of debt | — | 11,884 | — | — | — | — | 11,884 | 574 | — | 12,458 | ||||||||||||||||||||
Total operating expense | 25,433 | 19,237 | 36,649 | 25,918 | 10,569 | — | 117,806 | 6,052 | — | 123,858 | ||||||||||||||||||||
Net (loss) income before income taxes | (25,433 | ) | (19,237 | ) | 16,909 | 10,737 | 76,125 | — | 59,101 | (6,052 | ) | — | 53,049 | |||||||||||||||||
Provision for income tax (benefit) expense | (10,126 | ) | 34,172 | (6,047 | ) | 4,433 | — | — | 22,432 | (2,363 | ) | — | 20,069 | |||||||||||||||||
Net income (loss) | (15,307 | ) | (53,409 | ) | 22,956 | 6,304 | 76,125 | — | 36,669 | (3,689 | ) | — | 32,980 | |||||||||||||||||
Equity in net income (loss) of subsidiaries: | ||||||||||||||||||||||||||||||
CFTC | — | — | — | — | — | — | — | 36,669 | (36,669 | ) | — | |||||||||||||||||||
CURO Intermediate | (53,409 | ) | — | — | — | — | 53,409 | — | — | — | — | |||||||||||||||||||
Guarantor Subsidiaries | 22,956 | — | — | — | — | (22,956 | ) | — | — | — | — | |||||||||||||||||||
Non-Guarantor Subsidiaries | 6,304 | — | — | — | — | (6,304 | ) | — | — | — | — | |||||||||||||||||||
SPV Subs | 76,125 | — | — | — | — | (76,125 | ) | — | — | — | — | |||||||||||||||||||
Net income (loss) attributable to CURO | $ | 36,669 | $ | (53,409 | ) | $ | 22,956 | $ | 6,304 | $ | 76,125 | $ | (51,976 | ) | $ | 36,669 | $ | 32,980 | $ | (36,669 | ) | $ | 32,980 |
Six Months Ended June 30, 2018 | ||||||||||||||||||||||||||||||
(dollars in thousands) | CFTC | CURO Intermediate | Subsidiary Guarantors | Subsidiary Non-Guarantors | SPV Subs | Eliminations | CFTC Consolidated | CURO | Eliminations | CURO Consolidated | ||||||||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||||||||||||
Net cash provided (used) | $ | 78,548 | $ | — | $ | (46,381 | ) | $ | 4,174 | $ | 6,566 | $ | 3,538 | $ | 46,445 | $ | (12,550 | ) | $ | — | $ | 33,895 | ||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||
Purchase of property, equipment and software | — | — | (1,983 | ) | (1,072 | ) | — | — | (3,055 | ) | — | — | (3,055 | ) | ||||||||||||||||
Cash paid for Cognical Holdings preferred shares | (958 | ) | — | — | — | — | — | (958 | ) | — | — | (958 | ) | |||||||||||||||||
Change in restricted cash | — | — | (2 | ) | (6 | ) | (403 | ) | — | (411 | ) | — | — | (411 | ) | |||||||||||||||
Net cash used | (958 | ) | — | (1,985 | ) | (1,078 | ) | (403 | ) | — | (4,424 | ) | — | — | (4,424 | ) | ||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||
Proceeds from Non-Recourse U.S. SPV facility | — | — | — | — | 13,000 | — | 13,000 | — | — | 13,000 | ||||||||||||||||||||
Payments on Non-Recourse U.S. SPV facility | — | — | — | — | (19,163 | ) | — | (19,163 | ) | — | — | (19,163 | ) | |||||||||||||||||
Proceeds from revolving credit facilities | 10,000 | — | — | 8,798 | — | — | 18,798 | — | — | 18,798 | ||||||||||||||||||||
Payments on revolving credit facilities | (10,000 | ) | — | — | (8,798 | ) | — | — | (18,798 | ) | — | — | (18,798 | ) | ||||||||||||||||
Proceeds from issuance of common stock | — | — | — | — | — | — | — | 12,431 | — | 12,431 | ||||||||||||||||||||
Proceeds from exercise of stock options | — | — | — | — | — | — | — | 39 | — | 39 | ||||||||||||||||||||
Payments on 12.00% Senior Secured Notes | (77,500 | ) | — | — | — | — | — | (77,500 | ) | — | — | (77,500 | ) | |||||||||||||||||
Debt issuance costs paid | (90 | ) | — | — | (78 | ) | — | — | (168 | ) | — | — | (168 | ) | ||||||||||||||||
Net cash provided (used) | (77,590 | ) | — | — | (78 | ) | (6,163 | ) | — | (83,831 | ) | 12,470 | — | (71,361 | ) | |||||||||||||||
Effect of exchange rate changes on cash | — | — | — | (1,841 | ) | — | (3,538 | ) | (5,379 | ) | — | — | (5,379 | ) | ||||||||||||||||
Net increase (decrease) in cash | — | — | (48,366 | ) | 1,177 | — | — | (47,189 | ) | (80 | ) | — | (47,269 | ) | ||||||||||||||||
Cash at beginning of period | — | — | 117,379 | 44,915 | — | — | 162,294 | 80 | — | 162,374 | ||||||||||||||||||||
Cash at end of period | $ | — | $ | — | $ | 69,013 | $ | 46,092 | $ | — | $ | — | $ | 115,105 | $ | — | $ | — | $ | 115,105 |
Six Months Ended June 30, 2017 | ||||||||||||||||||||||||||||||
(dollars in thousands) | CFTC | CURO Intermediate | Subsidiary Guarantors | Subsidiary Non-Guarantors | SPV Subs | Eliminations | CFTC Consolidated | CURO | Eliminations | CURO Consolidated | ||||||||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||||||||||||
Net cash (used) provided | $ | (284,269 | ) | $ | 424,080 | $ | (55,496 | ) | $ | (17,605 | ) | $ | (11,422 | ) | $ | (431 | ) | $ | 54,857 | $ | (5,083 | ) | $ | — | $ | 49,774 | ||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||
Purchase of property, equipment and software | — | — | (4,648 | ) | (2,180 | ) | — | — | (6,828 | ) | — | — | (6,828 | ) | ||||||||||||||||
Cash paid for Cognical investment | (4,975 | ) | — | — | — | — | — | (4,975 | ) | — | — | (4,975 | ) | |||||||||||||||||
Change in restricted cash | — | — | 8 | 121 | (4,566 | ) | — | (4,437 | ) | — | — | (4,437 | ) | |||||||||||||||||
Net cash used | (4,975 | ) | — | (4,640 | ) | (2,059 | ) | (4,566 | ) | — | (16,240 | ) | — | — | (16,240 | ) | ||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||
Proceeds from Non-Recourse U.S. SPV facility and ABL facility | — | — | — | — | 41,130 | — | 41,130 | — | — | 41,130 | ||||||||||||||||||||
Payments on Non-Recourse U.S. SPV facility and ABL facility | — | — | — | — | (25,142 | ) | — | (25,142 | ) | — | — | (25,142 | ) | |||||||||||||||||
Proceeds from issuance of 12.00% Senior Secured Notes | 461,329 | — | — | — | — | — | 461,329 | — | — | 461,329 | ||||||||||||||||||||
Payments on 10.75% Senior Secured Notes | — | (426,034 | ) | — | — | — | — | (426,034 | ) | — | — | (426,034 | ) | |||||||||||||||||
Payments on 12.00% Senior Cash Pay Notes | — | — | — | — | — | — | — | (125,000 | ) | — | (125,000 | ) | ||||||||||||||||||
Dividends (paid) received | (158,083 | ) | — | — | — | — | — | (158,083 | ) | 130,083 | — | (28,000 | ) | |||||||||||||||||
Debt issuance costs paid | (14,002 | ) | — | — | — | — | — | (14,002 | ) | — | — | (14,002 | ) | |||||||||||||||||
Net cash provided (used) | 289,244 | (426,034 | ) | — | — | 15,988 | — | (120,802 | ) | 5,083 | — | (115,719 | ) | |||||||||||||||||
Effect of exchange rate changes on cash | — | — | — | 2,009 | — | 431 | 2,440 | — | — | 2,440 | ||||||||||||||||||||
Net decrease in cash | — | (1,954 | ) | (60,136 | ) | (17,655 | ) | — | — | (79,745 | ) | — | — | (79,745 | ) | |||||||||||||||
Cash at beginning of period | — | 1,954 | 127,712 | 63,779 | — | — | 193,445 | 80 | — | 193,525 | ||||||||||||||||||||
Cash at end of period | $ | — | $ | — | $ | 67,576 | $ | 46,124 | $ | — | $ | — | $ | 113,700 | $ | 80 | $ | — | $ | 113,780 |
Three Months Ended | ||||||||||||||||||||||||||
June 30, 2018 | June 30, 2017 | |||||||||||||||||||||||||
(in thousands) | U.S. | Canada | U.K. | Total | U.S. | Canada | U.K. | Total | ||||||||||||||||||
Unsecured Installment | $ | 111,244 | $ | 3,692 | $ | 8,537 | $ | 123,473 | $ | 94,897 | $ | 4,223 | $ | 6,029 | $ | 105,149 | ||||||||||
Secured Installment | 25,777 | — | — | 25,777 | 23,173 | — | — | 23,173 | ||||||||||||||||||
Open-End | 23,261 | 3,961 | — | 27,222 | 15,805 | — | — | 15,805 | ||||||||||||||||||
Single-Pay | 24,978 | 33,347 | 3,277 | 61,602 | 24,881 | 34,947 | 3,413 | 63,241 | ||||||||||||||||||
Ancillary | 4,866 | 6,043 | — | 10,909 | 5,008 | 4,425 | 143 | 9,576 | ||||||||||||||||||
Total revenue | $ | 190,126 | $ | 47,043 | $ | 11,814 | $ | 248,983 | $ | 163,764 | $ | 43,595 | $ | 9,585 | $ | 216,944 |
Six Months Ended | ||||||||||||||||||||||||||
June 30, 2018 | June 30, 2017 | |||||||||||||||||||||||||
(in thousands) | U.S. | Canada | U.K. | Total | U.S. | Canada | U.K. | Total | ||||||||||||||||||
Unsecured Installment | $ | 231,720 | $ | 8,595 | $ | 16,104 | $ | 256,419 | $ | 195,651 | $ | 7,643 | $ | 11,286 | $ | 214,580 | ||||||||||
Secured Installment | 52,633 | — | — | 52,633 | 46,842 | — | — | 46,842 | ||||||||||||||||||
Open-End | 49,095 | 5,350 | — | 54,445 | 33,712 | — | — | 33,712 | ||||||||||||||||||
Single-Pay | 51,043 | 67,639 | 6,625 | 125,307 | 51,208 | 69,126 | 6,697 | 127,031 | ||||||||||||||||||
Ancillary | 10,228 | 11,709 | — | 21,937 | 10,673 | 8,392 | 294 | 19,359 | ||||||||||||||||||
Total revenue | $ | 394,719 | $ | 93,293 | $ | 22,729 | $ | 510,741 | $ | 338,086 | $ | 85,161 | $ | 18,277 | $ | 441,524 |
2018 | 2017 | |||||||||||||||
(dollars in thousands, unaudited) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | |||||||||||
Unsecured Installment loans: | ||||||||||||||||
Revenue - Company Owned | $ | 63,404 | $ | 66,004 | $ | 67,800 | $ | 61,653 | $ | 52,550 | ||||||
Provision for losses - Company Owned | 27,434 | 27,477 | 29,917 | 29,079 | 17,845 | |||||||||||
Net revenue - Company Owned | $ | 35,970 | $ | 38,527 | $ | 37,883 | $ | 32,574 | $ | 34,705 | ||||||
Net charge-offs - Company Owned | $ | 29,734 | $ | 33,410 | $ | 32,894 | $ | 23,858 | $ | 18,858 | ||||||
Revenue - Guaranteed by the Company | $ | 60,069 | $ | 66,942 | $ | 69,078 | $ | 67,132 | $ | 52,599 | ||||||
Provision for losses - Guaranteed by the Company | 26,974 | 23,556 | 32,915 | 36,212 | 23,575 | |||||||||||
Net revenue - Guaranteed by the Company | $ | 33,095 | $ | 43,386 | $ | 36,163 | $ | 30,920 | $ | 29,024 | ||||||
Net charge-offs - Guaranteed by the Company | $ | 25,667 | $ | 30,743 | $ | 31,898 | $ | 34,904 | $ | 27,309 | ||||||
Unsecured Installment gross combined loans receivable: | ||||||||||||||||
Company Owned | $ | 179,414 | $ | 171,432 | $ | 196,306 | $ | 181,831 | $ | 156,075 | ||||||
Guaranteed by the Company(1)(2) | 66,351 | 54,332 | 75,156 | 67,438 | 58,289 | |||||||||||
Unsecured Installment gross combined loans receivable(1)(2) | $ | 245,765 | $ | 225,764 | $ | 271,462 | $ | 249,269 | $ | 214,364 | ||||||
Unsecured Installment Allowance for loan losses(3) | $ | 35,277 | $ | 37,916 | $ | 43,755 | $ | 46,938 | $ | 41,406 | ||||||
Unsecured Installment CSO guarantee liability(3) | $ | 11,193 | $ | 9,886 | $ | 17,072 | $ | 16,056 | $ | 14,748 | ||||||
Unsecured Installment Allowance for loan losses as a percentage of Unsecured Installment gross loans receivable | 19.7 | % | 22.1 | % | 22.3 | % | 25.8 | % | 26.5 | % | ||||||
Unsecured Installment CSO guarantee liability as a percentage of Unsecured Installment gross loans guaranteed by the Company | 16.9 | % | 18.2 | % | 22.7 | % | 23.8 | % | 25.3 | % | ||||||
Unsecured Installment past-due balances: | ||||||||||||||||
Unsecured Installment gross loans receivable | $ | 40,272 | $ | 39,273 | $ | 44,963 | $ | 41,353 | $ | 33,534 | ||||||
Unsecured Installment gross loans guaranteed by the Company | $ | 10,319 | $ | 8,410 | $ | 12,480 | $ | 10,462 | $ | 8,204 | ||||||
Past-due Unsecured Installment gross loans receivable -- percentage(2) | 22.4 | % | 22.9 | % | 22.9 | % | 22.7 | % | 21.5 | % | ||||||
Past-due Unsecured Installment gross loans guaranteed by the Company -- percentage(2) | 15.6 | % | 15.5 | % | 16.6 | % | 15.5 | % | 14.1 | % | ||||||
Unsecured Installment other information: | ||||||||||||||||
Originations - Company Owned | $ | 128,146 | $ | 99,418 | $ | 135,284 | $ | 137,618 | $ | 119,636 | ||||||
Originations - Guaranteed by the Company(1) | $ | 84,082 | $ | 60,593 | $ | 82,326 | $ | 83,680 | $ | 68,338 | ||||||
Unsecured Installment ratios: | ||||||||||||||||
Provision as a percentage of originations - Company Owned | 21.4 | % | 27.6 | % | 22.1 | % | 21.1 | % | 14.9 | % | ||||||
Provision as a percentage of gross loans receivable - Company Owned | 15.3 | % | 16.0 | % | 15.2 | % | 16.0 | % | 11.4 | % | ||||||
Provision as a percentage of originations - Guaranteed by the Company | 32.1 | % | 38.9 | % | 40.0 | % | 43.3 | % | 34.5 | % | ||||||
Provision as a percentage of gross loans receivable - Guaranteed by the Company | 40.7 | % | 43.4 | % | 43.8 | % | 53.7 | % | 40.4 | % | ||||||
(1) Includes loans originated by third-party lenders through CSO programs, which are not included in our consolidated financial statements. | ||||||||||||||||
(2) Non-GAAP measure. | ||||||||||||||||
(3) Allowance for loan losses is reported as a contra-asset reducing gross loans receivable while the CSO guarantee liability is reported as a liability on our Condensed Consolidated Balance Sheets. |
2018 | 2017 | |||||||||||||||
(dollars in thousands, unaudited) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | |||||||||||
Secured Installment loans: | ||||||||||||||||
Revenue | $ | 25,777 | $ | 26,856 | $ | 27,732 | $ | 26,407 | $ | 23,173 | ||||||
Provision for losses | 7,650 | 6,640 | 10,051 | 6,512 | 4,955 | |||||||||||
Net revenue | $ | 18,127 | $ | 20,216 | $ | 17,681 | $ | 19,895 | $ | 18,218 | ||||||
Net charge-offs | $ | 9,003 | $ | 8,669 | $ | 10,802 | $ | 11,597 | $ | 6,481 | ||||||
Secured Installment gross combined loan balances: | ||||||||||||||||
Secured Installment gross combined loans receivable(1)(2) | $ | 87,434 | $ | 82,534 | $ | 92,817 | $ | 88,730 | $ | 80,077 | ||||||
Secured Installment Allowance for loan losses and CSO guarantee liability(3) | $ | 10,812 | $ | 12,165 | $ | 14,194 | $ | 14,945 | $ | 20,030 | ||||||
Secured Installment Allowance for loan losses and CSO guarantee liability as a percentage of Secured Installment gross combined loans receivable | 12.4 | % | 14.7 | % | 15.3 | % | 16.8 | % | 25.0 | % | ||||||
Secured Installment past-due balances: | ||||||||||||||||
Secured Installment past-due gross loans receivable and gross loans guaranteed by the Company | $ | 15,246 | $ | 14,756 | $ | 16,554 | $ | 15,265 | $ | 12,630 | ||||||
Past-due Secured Installment gross loans receivable and gross loans guaranteed by the Company -- percentage(2) | 17.4 | % | 17.9 | % | 17.8 | % | 17.2 | % | 15.8 | % | ||||||
Secured Installment other information: | ||||||||||||||||
Originations(1) | $ | 53,597 | $ | 34,750 | $ | 48,577 | $ | 52,526 | $ | 45,596 | ||||||
Secured Installment ratios: | ||||||||||||||||
Provision as a percentage of originations | 14.3 | % | 19.1 | % | 20.7 | % | 12.4 | % | 10.9 | % | ||||||
Provision as a percentage of gross combined loans receivable | 8.7 | % | 8.0 | % | 10.8 | % | 7.3 | % | 6.2 | % | ||||||
(1) Includes loans originated by third-party lenders through CSO programs, which are not included in our consolidated financial statements. | ||||||||||||||||
(2) Non-GAAP measure. | ||||||||||||||||
(3) Allowance for loan losses is reported as a contra-asset reducing gross loans receivable while the CSO guarantee liability is reported as a liability on our Condensed Consolidated Balance Sheets. |
2018 | 2017 | |||||||||||||||
(dollars in thousands, unaudited) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | |||||||||||
Open-End loans: | ||||||||||||||||
Revenue | $ | 27,222 | $ | 27,223 | $ | 21,154 | $ | 18,630 | $ | 15,805 | ||||||
Provision for losses | 14,848 | 11,428 | 8,334 | 6,348 | 4,298 | |||||||||||
Net revenue | $ | 12,374 | $ | 15,795 | $ | 12,820 | $ | 12,282 | $ | 11,507 | ||||||
Net charge-offs | $ | 11,924 | $ | 10,972 | $ | 6,799 | $ | 5,991 | $ | 4,343 | ||||||
Open-End gross loan balances: | ||||||||||||||||
Open-End gross loans receivable | $ | 91,033 | $ | 51,564 | $ | 47,949 | $ | 32,133 | $ | 26,771 | ||||||
Allowance for loan losses | $ | 9,717 | $ | 6,846 | $ | 6,426 | $ | 4,880 | $ | 4,523 | ||||||
Open-End Allowance for loan losses as a percentage of Open-End gross loans receivable | 10.7 | % | 13.3 | % | 13.4 | % | 15.2 | % | 16.9 | % | ||||||
Open-End ratios: | ||||||||||||||||
Provision as a percentage of gross loans receivable | 16.3 | % | 22.2 | % | 17.4 | % | 19.8 | % | 16.1 | % |
2018 | 2017 | |||||||||||||||
(dollars in thousands, unaudited) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | |||||||||||
Single-pay loans: | ||||||||||||||||
Revenue | $ | 61,602 | $ | 63,705 | $ | 70,868 | $ | 70,895 | $ | 63,241 | ||||||
Provision for losses | 14,527 | 11,302 | 17,952 | 20,632 | 14,289 | |||||||||||
Net revenue | $ | 47,075 | $ | 52,403 | $ | 52,916 | $ | 50,263 | $ | 48,952 | ||||||
Net charge-offs | $ | 14,543 | $ | 12,698 | $ | 17,362 | $ | 20,515 | $ | 13,849 | ||||||
Single-Pay gross loan balances: | ||||||||||||||||
Single-Pay gross loans receivable | $ | 89,575 | $ | 87,075 | $ | 99,400 | $ | 94,476 | $ | 91,230 | ||||||
Single-Pay Allowance for loan losses | $ | 4,372 | $ | 4,485 | $ | 5,915 | $ | 5,342 | $ | 5,313 | ||||||
Single-Pay Allowance for loan losses as a percentage of Single-Pay gross loans receivable | 4.9 | % | 5.2 | % | 6.0 | % | 5.7 | % | 5.8 | % |
Three Months Ended | |||||||||||||||
(in millions) | June 30, 2018 | March 31, 2018 | December 31, 2017 | September 30, 2017 | June 30, 2017 | ||||||||||
Company Owned gross loans receivable | $ | 444.6 | $ | 389.8 | $ | 432.8 | $ | 393.4 | $ | 350.3 | |||||
Gross loans receivable Guaranteed by the Company | 69.2 | 57.1 | 78.8 | 71.2 | 62.1 | ||||||||||
Gross combined loans receivable | $ | 513.8 | $ | 446.9 | $ | 511.6 | $ | 464.6 | $ | 412.4 |
(in thousands) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
2018 | 2017 | Change $ | Change % | 2018 | 2017 | Change $ | Change % | ||||||||||||||||
Revenue | $ | 248,983 | $ | 216,944 | $ | 32,039 | 14.8 | % | $ | 510,741 | $ | 441,524 | $ | 69,217 | 15.7 | % | |||||||
Provision for losses | 91,986 | 65,446 | 26,540 | 40.6 | % | 173,017 | 127,182 | 45,835 | 36.0 | % | |||||||||||||
Net revenue | 156,997 | 151,498 | 5,499 | 3.6 | % | 337,724 | 314,342 | 23,382 | 7.4 | % | |||||||||||||
Advertising costs | 17,554 | 11,641 | 5,913 | 50.8 | % | 27,310 | 19,329 | 7,981 | 41.3 | % | |||||||||||||
Non-advertising costs of providing services | 59,031 | 57,855 | 1,176 | 2.0 | % | 120,757 | 118,106 | 2,651 | 2.2 | % | |||||||||||||
Total cost of providing services | 76,585 | 69,496 | 7,089 | 10.2 | % | 148,067 | 137,435 | 10,632 | 7.7 | % | |||||||||||||
Gross margin | 80,412 | 82,002 | (1,590 | ) | (1.9 | )% | 189,657 | 176,907 | 12,750 | 7.2 | % | ||||||||||||
Operating (income) expense | |||||||||||||||||||||||
Corporate, district and other | 38,655 | 36,557 | 2,098 | 5.7 | % | 79,109 | 69,550 | 9,559 | 13.7 | % | |||||||||||||
Interest expense | 20,465 | 18,484 | 1,981 | 10.7 | % | 42,814 | 41,850 | 964 | 2.3 | % | |||||||||||||
Loss on extinguishment of debt | — | — | — | # | 11,683 | 12,458 | (775 | ) | (6.2 | )% | |||||||||||||
Total operating expense | 59,120 | 55,041 | 4,079 | 7.4 | % | 133,606 | 123,858 | 9,748 | 7.9 | % | |||||||||||||
Net income before income taxes | 21,292 | 26,961 | (5,669 | ) | (21.0 | )% | 56,051 | 53,049 | 3,002 | 5.7 | % | ||||||||||||
Provision for income taxes | 5,317 | 10,619 | (5,302 | ) | (49.9 | )% | 16,784 | 20,069 | (3,285 | ) | (16.4 | )% | |||||||||||
Net income | $ | 15,975 | $ | 16,342 | $ | (367 | ) | (2.2 | )% | $ | 39,267 | $ | 32,980 | $ | 6,287 | 19.1 | % | ||||||
# - Variance greater than 100% or not meaningful. |
U.S. Segment Results | Three Months Ended June 30, | ||||||||||
(dollars in thousands) | 2018 | 2017 | Change $ | Change % | |||||||
Revenue | $ | 190,126 | $ | 163,764 | $ | 26,362 | 16.1 | % | |||
Provision for losses | 71,987 | 51,958 | 20,029 | 38.5 | % | ||||||
Net revenue | 118,139 | 111,806 | 6,333 | 5.7 | % | ||||||
Advertising costs | 12,409 | 7,897 | 4,512 | 57.1 | % | ||||||
Non-advertising costs of providing services | 41,682 | 40,790 | 892 | 2.2 | % | ||||||
Total cost of providing services | 54,091 | 48,687 | 5,404 | 11.1 | % | ||||||
Gross margin | 64,048 | 63,119 | 929 | 1.5 | % | ||||||
Corporate, district and other | 28,221 | 27,993 | 228 | 0.8 | % | ||||||
Interest expense | 20,465 | 18,423 | 2,042 | 11.1 | % | ||||||
Total operating expense | 48,686 | 46,416 | 2,270 | 4.9 | % | ||||||
Segment operating income | 15,362 | 16,703 | (1,341 | ) | (8.0 | )% | |||||
Interest expense | 20,465 | 18,423 | 2,042 | 11.1 | % | ||||||
Depreciation and amortization | 3,379 | 3,393 | (14 | ) | (0.4 | )% | |||||
EBITDA | 39,206 | 38,519 | 687 | 1.8 | % | ||||||
Legal settlement cost | — | 1,950 | (1,950 | ) | |||||||
Other adjustments | (66 | ) | (20 | ) | (46 | ) | |||||
Transaction related costs | — | 146 | (146 | ) | |||||||
Share-based cash and non-cash compensation | 2,181 | 1,176 | 1,005 | ||||||||
Adjusted EBITDA | $ | 41,321 | $ | 41,771 | $ | (450 | ) | (1.1 | )% |
U.S. Segment Results | Six Months Ended June 30, | ||||||||||
(dollars in thousands) | 2018 | 2017 | Change $ | Change % | |||||||
Revenue | $ | 394,719 | $ | 338,086 | $ | 56,633 | 16.8 | % | |||
Provision for losses | 136,320 | 101,152 | 35,168 | 34.8 | % | ||||||
Net revenue | 258,399 | 236,934 | 21,465 | 9.1 | % | ||||||
Advertising costs | 17,568 | 12,591 | 4,977 | 39.5 | % | ||||||
Non-advertising costs of providing services | 85,439 | 84,091 | 1,348 | 1.6 | % | ||||||
Total cost of providing services | 103,007 | 96,682 | 6,325 | 6.5 | % | ||||||
Gross margin | 155,392 | 140,252 | 15,140 | 10.8 | % | ||||||
Corporate, district and other | 58,753 | 53,042 | 5,711 | 10.8 | % | ||||||
Interest expense | 42,762 | 41,768 | 994 | 2.4 | % | ||||||
Gain on extinguishment of debt | 11,683 | 12,458 | (775 | ) | (6.2 | )% | |||||
Total operating expense | 113,198 | 107,268 | 5,930 | 5.5 | % | ||||||
Segment operating income | 42,194 | 32,984 | 9,210 | 27.9 | % | ||||||
Interest expense | 42,762 | 41,768 | 994 | 2.4 | % | ||||||
Depreciation and amortization | 6,786 | 6,753 | 33 | 0.5 | % | ||||||
EBITDA | 91,742 | 81,505 | 10,237 | 12.6 | % | ||||||
Gain on extinguishment of debt | 11,683 | 12,458 | (775 | ) | |||||||
Legal settlement cost | — | 1,950 | (1,950 | ) | |||||||
Other adjustments | (125 | ) | (14 | ) | (111 | ) | |||||
Transaction related costs | — | 2,400 | (2,400 | ) | |||||||
Share-based cash and non-cash compensation | 4,023 | 1,302 | 2,721 | ||||||||
Adjusted EBITDA | $ | 107,323 | $ | 99,601 | $ | 7,722 | 7.8 | % |
Canada Segment Results | Three Months Ended June 30, | ||||||||||
(dollars in thousands) | 2018 | 2017 | Change $ | Change % | |||||||
Revenue | $ | 47,043 | $ | 43,595 | $ | 3,448 | 7.9 | % | |||
Provision for losses | 14,360 | 10,300 | 4,060 | 39.4 | % | ||||||
Net revenue | 32,683 | 33,295 | (612 | ) | (1.8 | )% | |||||
Advertising costs | 2,704 | 2,264 | 440 | 19.4 | % | ||||||
Non-advertising costs of providing services | 16,679 | 15,069 | 1,610 | 10.7 | % | ||||||
Total cost of providing services | 19,383 | 17,333 | 2,050 | 11.8 | % | ||||||
Gross margin | 13,300 | 15,962 | (2,662 | ) | (16.7 | )% | |||||
Corporate, district and other | 4,759 | 4,372 | 387 | 8.9 | % | ||||||
Interest expense | 7 | 53 | (46 | ) | (86.8 | )% | |||||
Total operating expense | 4,766 | 4,425 | 341 | 7.7 | % | ||||||
Segment operating income | 8,534 | 11,537 | (3,003 | ) | (26.0 | )% | |||||
Interest expense | 7 | 53 | (46 | ) | (86.8 | )% | |||||
Depreciation and amortization | 1,091 | 1,100 | (9 | ) | (0.8 | )% | |||||
EBITDA | 9,632 | 12,690 | (3,058 | ) | (24.1 | )% | |||||
Other adjustments | 157 | (158 | ) | 315 | |||||||
Adjusted EBITDA | $ | 9,789 | $ | 12,532 | $ | (2,743 | ) | (21.9 | )% |
Canada Segment Results | Six Months Ended June 30, | ||||||||||
(dollars in thousands) | 2018 | 2017 | Change $ | Change % | |||||||
Revenue | $ | 93,293 | $ | 85,161 | $ | 8,132 | 9.5 | % | |||
Provision for losses | 26,910 | 20,528 | 6,382 | 31.1 | % | ||||||
Net revenue | 66,383 | 64,633 | 1,750 | 2.7 | % | ||||||
Advertising costs | 5,430 | 4,045 | 1,385 | 34.2 | % | ||||||
Non-advertising costs of providing services | 33,151 | 30,326 | 2,825 | 9.3 | % | ||||||
Total cost of providing services | 38,581 | 34,371 | 4,210 | 12.2 | % | ||||||
Gross margin | 27,802 | 30,262 | (2,460 | ) | (8.1 | )% | |||||
Corporate, district and other | 9,656 | 7,747 | 1,909 | 24.6 | % | ||||||
Interest expense | 64 | 82 | (18 | ) | (22.0 | )% | |||||
Total operating expense | 9,720 | 7,829 | 1,891 | 24.2 | % | ||||||
Segment operating income | 18,082 | 22,433 | (4,351 | ) | (19.4 | )% | |||||
Interest expense | 64 | 82 | (18 | ) | (22.0 | )% | |||||
Depreciation and amortization | 2,219 | 2,219 | — | — | % | ||||||
EBITDA | 20,365 | 24,734 | (4,369 | ) | (17.7 | )% | |||||
Other adjustments | 173 | (472 | ) | 645 | |||||||
Adjusted EBITDA | $ | 20,538 | $ | 24,262 | $ | (3,724 | ) | (15.3 | )% |
U.K. Segment Results | Three Months Ended June 30, | ||||||||||
(dollars in thousands) | 2018 | 2017 | Change $ | Change % | |||||||
Revenue | $ | 11,814 | $ | 9,585 | $ | 2,229 | 23.3 | % | |||
Provision for losses | 5,639 | 3,188 | 2,451 | 76.9 | % | ||||||
Net revenue | 6,175 | 6,397 | (222 | ) | (3.5 | )% | |||||
Advertising costs | 2,441 | 1,479 | 962 | 65.0 | % | ||||||
Non-advertising costs of providing services | 670 | 1,997 | (1,327 | ) | (66.4 | )% | |||||
Total cost of providing services | 3,111 | 3,476 | (365 | ) | (10.5 | )% | |||||
Gross margin | 3,064 | 2,921 | 143 | 4.9 | % | ||||||
Corporate, district and other | 5,675 | 4,192 | 1,483 | 35.4 | % | ||||||
Interest income | (7 | ) | 9 | 16 | # | ||||||
Total operating expense | 5,668 | 4,201 | 1,467 | 34.9 | % | ||||||
Segment operating loss | (2,604 | ) | (1,280 | ) | (1,324 | ) | (103.4 | )% | |||
Interest income | (7 | ) | 9 | 16 | # | ||||||
Depreciation and amortization | 128 | 182 | (54 | ) | (29.7 | )% | |||||
EBITDA | (2,483 | ) | (1,089 | ) | (1,394 | ) | (128.0 | )% | |||
Other adjustments | (6 | ) | (12 | ) | 6 | ||||||
Adjusted EBITDA | $ | (2,489 | ) | $ | (1,101 | ) | $ | (1,388 | ) | (126.1 | )% |
# - Variance greater than 100% or not meaningful |
U.K. Segment Results | Six Months Ended June 30, | ||||||||||
(dollars in thousands) | 2018 | 2017 | Change $ | Change % | |||||||
Revenue | $ | 22,729 | $ | 18,277 | $ | 4,452 | 24.4 | % | |||
Provision for losses | 9,787 | 5,502 | 4,285 | 77.9 | % | ||||||
Net revenue | 12,942 | 12,775 | 167 | 1.3 | % | ||||||
Advertising costs | 4,312 | 2,692 | 1,620 | 60.2 | % | ||||||
Non-advertising costs of providing services | 2,167 | 3,689 | (1,522 | ) | (41.3 | )% | |||||
Total cost of providing services | 6,479 | 6,381 | 98 | 1.5 | % | ||||||
Gross margin | 6,463 | 6,394 | 69 | 1.1 | % | ||||||
Corporate, district and other | 10,700 | 8,761 | 1,939 | 22.1 | % | ||||||
Interest income | (12 | ) | 1 | 13 | # | ||||||
Total operating expense | 10,688 | 8,762 | 1,926 | 22.0 | % | ||||||
Segment operating loss | (4,225 | ) | (2,368 | ) | (1,857 | ) | 78.4 | % | |||
Interest income | (12 | ) | 1 | 13 | # | ||||||
Depreciation and amortization | 254 | 357 | (103 | ) | (28.9 | )% | |||||
EBITDA | (3,983 | ) | (2,010 | ) | (1,973 | ) | 98.2 | % | |||
Other adjustments | (42 | ) | (18 | ) | (24 | ) | |||||
Adjusted EBITDA | $ | (4,025 | ) | $ | (2,028 | ) | $ | (1,997 | ) | 98.5 | % |
# - Variance greater than 100% or not meaningful |
• | Adjusted Net Income and Adjusted Earnings Per Share, or the Adjusted Earnings Measures (net income plus or minus gain (loss) on extinguishment of debt, restructuring and other costs, goodwill and intangible asset impairments, transaction-related costs, share-based compensation, intangible asset amortization and cumulative tax effect of adjustments, on a total and per share basis); |
• | EBITDA (earnings before interest, income taxes, depreciation and amortization); |
• | Adjusted EBITDA (EBITDA plus or minus certain non-cash and other adjusting items); and |
• | Gross Combined Loans Receivable (includes loans originated by third-party lenders through CSO programs which are not included in our consolidated financial statements). |
• | they do not include our cash expenditures or future requirements for capital expenditures or contractual commitments; |
• | they do not include changes in, or cash requirements for our working capital needs; |
• | they do not include the interest expense, or the cash requirements necessary to service interest or principal payments on our debt; |
• | depreciation and amortization are non-cash expense items reported in our statements of cash flows; and |
• | other companies in our industry may calculate these measures differently, limiting their usefulness as comparative measures. |
Three Months Ended June 30, | Change | |||||||||||
(in thousands except per share data) | 2018 | 2017 | $ | % | ||||||||
Net income | $ | 15,975 | $ | 16,342 | $ | (367 | ) | (2.2 | )% | |||
Adjustments: | ||||||||||||
Loss on extinguishment of debt(1) | — | — | ||||||||||
Legal settlement costs(7) | — | 1,950 | ||||||||||
Transaction related costs(2) | — | 146 | ||||||||||
Share-based compensation(3) | 2,181 | 1,180 | ||||||||||
Intangible asset amortization | 655 | 590 | ||||||||||
Impact of tax law changes(6) | — | — | ||||||||||
Cumulative tax effect of adjustments | (709 | ) | (1,523 | ) | ||||||||
Adjusted Net Income | $ | 18,102 | $ | 18,685 | $ | (583 | ) | (3.1 | )% | |||
Net income | $ | 15,975 | $ | 16,342 | ||||||||
Diluted Weighted Average Shares Outstanding (4) | 47,996 | 38,987 | ||||||||||
Diluted Earnings per Share (4) | $ | 0.33 | $ | 0.42 | $ | (0.09 | ) | (21.4 | )% | |||
Per Share impact of adjustments to Net Income (4) | 0.05 | 0.06 | ||||||||||
Adjusted Diluted Earnings per Share (4) | $ | 0.38 | $ | 0.48 | $ | (0.10 | ) | (20.8 | )% |
Six Months Ended June 30, | Change | |||||||||||
(in thousands except per share data) | 2018 | 2017 | $ | % | ||||||||
Net income | $ | 39,267 | $ | 32,980 | $ | 6,287 | 19.1 | % | ||||
Adjustments: | ||||||||||||
Loss on extinguishment of debt(1) | 11,683 | 12,458 | ||||||||||
Legal settlement costs(7) | — | 1,950 | ||||||||||
Transaction related costs(2) | — | 2,400 | ||||||||||
Share-based compensation(3) | 4,023 | 1,306 | ||||||||||
Intangible asset amortization | 1,331 | 1,173 | ||||||||||
Impact of tax law changes(6) | 1,800 | — | ||||||||||
Cumulative tax effect of adjustments | (4,401 | ) | (7,105 | ) | ||||||||
Adjusted Net Income | $ | 53,703 | $ | 45,162 | $ | 8,541 | 18.9 | % | ||||
Net income | $ | 39,267 | $ | 32,980 | ||||||||
Diluted Weighted Average Shares Outstanding (4) | 47,757 | 38,983 | ||||||||||
Diluted Earnings per Share (4) | $ | 0.82 | $ | 0.85 | $ | (0.03 | ) | (3.5 | )% | |||
Per Share impact of adjustments to Net Income (4) | 0.31 | 0.31 | ||||||||||
Adjusted Diluted Earnings per Share (4) | $ | 1.13 | $ | 1.16 | $ | (0.03 | ) | (2.6 | )% |
Three Months Ended June 30, | Change | |||||||||||
(dollars in thousands) | 2018 | 2017 | $ | % | ||||||||
Net income | $ | 15,975 | $ | 16,342 | $ | (367 | ) | (2.2 | )% | |||
Provision for income taxes | 5,317 | 10,619 | (5,302 | ) | (49.9 | )% | ||||||
Interest expense | 20,465 | 18,484 | 1,981 | 10.7 | % | |||||||
Depreciation and amortization | 4,598 | 4,676 | (78 | ) | (1.7 | )% | ||||||
EBITDA | 46,355 | 50,121 | $ | (3,766 | ) | (7.5 | )% | |||||
Loss on extinguishment of debt(1) | — | — | ||||||||||
Legal Settlement costs(7) | — | 1,950 | ||||||||||
Transaction related costs(2) | — | 146 | ||||||||||
Share-based compensation(3) | 2,181 | 1,180 | ||||||||||
Other adjustments(5) | 85 | (201 | ) | |||||||||
Adjusted EBITDA | 48,621 | 53,196 | (4,575 | ) | (8.6 | )% | ||||||
Adjusted EBITDA Margin | 19.5 | % | 24.5 | % |
Six Months Ended June 30, | Change | |||||||||||
(dollars in thousands) | 2018 | 2017 | $ | % | ||||||||
Net income | $ | 39,267 | $ | 32,980 | $ | 6,287 | 19.1 | % | ||||
Provision for income taxes | 16,784 | 20,069 | (3,285 | ) | (16.4 | )% | ||||||
Interest expense | 42,814 | 41,850 | 964 | 2.3 | % | |||||||
Depreciation and amortization | 9,259 | 9,330 | (71 | ) | (0.8 | )% | ||||||
EBITDA | 108,124 | 104,229 | $ | 3,895 | 3.7 | % | ||||||
Loss on extinguishment of debt(1) | 11,683 | 12,458 | ||||||||||
Legal settlement costs | — | 1,950 | ||||||||||
Transaction related costs(2) | — | 2,400 | ||||||||||
Share-based compensation(3) | 4,023 | 1,306 | ||||||||||
Other adjustments(5) | 6 | (515 | ) | |||||||||
Adjusted EBITDA | 123,836 | 121,828 | 2,008 | 1.6 | % | |||||||
Adjusted EBITDA Margin | 24.2 | % | 27.6 | % | ||||||||
(1) For the six months ended June 30, 2018, the $11.7 million loss from the extinguishment of debt was due to the redemption of CFTC's 12.00% Senior Secured Notes due 2022. For the six months ended June 30, 2017, the $12.5 million loss from extinguishment of debt was due to the redemption of CURO Intermediate Holding Corp's 10.75% Senior Secured Notes due 2018 and the 12.00% Senior Cash Pay Notes due 2017. | ||||||||||||
(2) Transaction-related costs include professional fees paid in connection with potential transactions and the original issuance of $470.0 million of Senior Secured Notes due 2022 in the first quarter of 2017. | ||||||||||||
(3) The Company approved the adoption of a share-based compensation plans during 2010 and 2017 for key members of its senior management team. The estimated fair value of share-based awards is recognized as non-cash compensation expense on a straight-line basis over the vesting period. | ||||||||||||
(4) The share and per share information have been adjusted to give effect to the 36-to-1 split of the Company's common stock that occurred during the fourth quarter of 2017. | ||||||||||||
(5) Other adjustments include deferred rent and the intercompany foreign exchange impact. Deferred rent represents the non-cash component of rent expense. Rent expense is recognized ratably on a straight-line basis over the lease term. | ||||||||||||
(6) As a result of the 2017 Tax Act, which became law on December 22, 2017, we provided an estimate of the new repatriation tax as of December 31, 2017. Subsequent to further guidance published in the first quarter of 2018, we booked additional tax expense of $1.2 million for the 2017 repatriation tax. Additionally, the 2017 Tax Act provided for a new GILTI tax starting in 2018 and we estimated and provided tax expense of $0.6 million as of June 30, 2018. | ||||||||||||
(7) Legal settlement cost for the three and six months ended June 30, 2017 includes $2.0 million for the settlement of the Harrison, et. al. v. Principal Investment Inc. et al. For more information, see Note 18 -- "Contingent Liabilities" of the Notes to the Consolidated Financial Statements included in the Company's Form 10-K filed with the SEC on March 13, 2018. |
Average Exchange Rates | ||||||||||||
Three Months Ended June 30, | Change | |||||||||||
2018 | 2017 | $ | % | |||||||||
Canadian Dollar | $ | 0.7749 | $ | 0.7434 | $0.0315 | 4.2 | % | |||||
British Pound Sterling | $ | 1.3610 | $ | 1.2784 | $0.0826 | 6.5 | % |
Average Exchange Rates | ||||||||||||
Six Months Ended June 30, | Change | |||||||||||
2018 | 2017 | $ | % | |||||||||
Canadian Dollar | $ | 0.7831 | $ | 0.7495 | $0.0336 | 4.5 | % | |||||
British Pound Sterling | $ | 1.3763 | $ | 1.2587 | $0.1176 | 9.3 | % |
Three Months Ended June 30, | Change | |||||||||||||||
(dollars in thousands) | 2018 | 2017 | $ | % | ||||||||||||
Revenues – constant currency basis: | ||||||||||||||||
Canada | $ | 45,146 | $ | 43,595 | $ | 1,551 | 3.6 | % | ||||||||
United Kingdom | 11,115 | 9,585 | 1,530 | 16.0 | % | |||||||||||
Gross margin - constant currency basis: | ||||||||||||||||
Canada | 12,777 | 15,962 | (3,185 | ) | (20.0 | )% | ||||||||||
United Kingdom | 2,915 | 2,921 | (6 | ) | (0.2 | )% |
Six Months Ended June 30, | Change | |||||||||||||||
(dollars in thousands) | 2018 | 2017 | $ | % | ||||||||||||
Revenues – constant currency basis: | ||||||||||||||||
Canada | $ | 89,343 | $ | 85,161 | $ | 4,182 | 4.9 | % | ||||||||
United Kingdom | 20,818 | 18,277 | 2,541 | 13.9 | % | |||||||||||
Gross margin - constant currency basis: | ||||||||||||||||
Canada | 26,630 | 30,262 | (3,632 | ) | (12.0 | )% | ||||||||||
United Kingdom | 5,946 | 6,394 | (448 | ) | (7.0 | )% |
June 30, | December 31, | |||||||
(dollars in thousands) | 2018 | 2017 | ||||||
2017 Senior Secured Notes (due 2022) | $ | 512,136 | $ | 585,823 | ||||
Non-Recourse U.S. SPV Facility | 114,697 | 120,402 | ||||||
Senior Revolver | — | — | ||||||
Cash Money Revolving Credit Facility | — | — | ||||||
Long-term debt | $ | 626,833 | $ | 706,225 |
Six Months Ended June 30, | ||||||||
(dollars in thousands) | 2018 | 2017 | ||||||
Net cash provided by operating activities | $ | 33,895 | $ | 49,774 | ||||
Net cash used in investing activities | (4,424 | ) | (16,240 | ) | ||||
Net cash used in financing activities | (71,361 | ) | (115,719 | ) |
Exhibit no. | Exhibit Description | |
3.1 | ||
3.2 | ||
31.1 | ||
31.2 | ||
32.1 | ||
32.2 | ||
101 | The following unaudited financial information from the Company's Quarterly Report on Form 10-Q for the period ended June 30, 2018, filed with the SEC on August 1, 2018, formatted in Extensible Business Reporting Language (“XBRL”) includes: (i) Condensed Consolidated Balance Sheets at June 30, 2018 and December 31, 2017, (ii) Condensed Consolidated Statements of Income for the quarter ended June 30, 2018 and 2017, (iii) Condensed Consolidated Statements of Comprehensive Income for the quarter ended June 30, 2018 and 2017, (iv) Condensed Consolidated Statements of Cash Flows for the quarter ended June 30, 2018 and 2017, and (v) Notes to Condensed Consolidated Financial Statements* | |
* | Filed herewith. | |
** | Furnished herewith. |
By: | /s/ ROGER DEAN | |
Roger Dean | ||
Executive Vice-President and Chief Financial Officer |
1. | I have reviewed this quarterly report on Form 10-Q of CURO Group Holdings Corp. (the “registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | (Paragraph omitted pursuant to SEC Release Nos. 33-8238/34-47986 and 33-8392/34-49313); |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
By: | /s/ DON GAYHARDT |
Don Gayhardt | |
President, Chief Executive Officer and Director |
1. | I have reviewed this quarterly report on Form 10-Q of CURO Group Holdings Corp. (the “registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | (Paragraph omitted pursuant to SEC Release Nos. 33-8238/34-47986 and 33-8392/34-49313); |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
By: | /s/ ROGER DEAN |
Roger Dean | |
Treasurer, Executive Vice President and Chief Financial Officer |
/s/ DON GAYHARDT |
Don Gayhardt |
Chief Executive Officer |
August 2, 2018 |
/s/ ROGER DEAN |
Roger Dean |
Chief Financial Officer |
August 2, 2018 |
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DOCUMENT AND ENTITY INFORMATION - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jul. 31, 2018 |
|
DOCUMENT AND ENTITY INFORMATION [Abstract] | ||
Entity Registrant Name | CURO GROUP HOLDINGS CORP. | |
Entity Central Index Key | 0001711291 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 45,770,551 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Income Statement [Abstract] | ||||
Revenue | $ 248,983 | $ 216,944 | $ 510,741 | $ 441,524 |
Provision for losses | 91,986 | 65,446 | 173,017 | 127,182 |
Net revenue | 156,997 | 151,498 | 337,724 | 314,342 |
Cost of providing services | ||||
Salaries and benefits | 26,907 | 26,300 | 53,826 | 52,733 |
Occupancy | 13,320 | 13,511 | 26,747 | 27,606 |
Office | 6,077 | 4,936 | 13,057 | 9,804 |
Other costs of providing services | 12,727 | 13,108 | 27,127 | 27,963 |
Advertising | 17,554 | 11,641 | 27,310 | 19,329 |
Total cost of providing services | 76,585 | 69,496 | 148,067 | 137,435 |
Gross margin | 80,412 | 82,002 | 189,657 | 176,907 |
Operating expense | ||||
Corporate, district and other | 38,655 | 36,557 | 79,109 | 69,550 |
Interest expense | 20,465 | 18,484 | 42,814 | 41,850 |
Loss on extinguishment of debt | 0 | 0 | 11,683 | 12,458 |
Total operating expense | 59,120 | 55,041 | 133,606 | 123,858 |
Net income before income taxes | 21,292 | 26,961 | 56,051 | 53,049 |
Provision for income taxes | 5,317 | 10,619 | 16,784 | 20,069 |
Net income | $ 15,975 | $ 16,342 | $ 39,267 | $ 32,980 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 45,650 | 37,895 | 45,578 | 37,895 |
Diluted (in shares) | 47,996 | 38,987 | 47,757 | 38,983 |
Net income per common share: | ||||
Basic earnings per share (in dollars per share) | $ 0.35 | $ 0.43 | $ 0.86 | $ 0.87 |
Diluted earnings per share (in dollars per share) | $ 0.33 | $ 0.42 | $ 0.82 | $ 0.85 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 15,975 | $ 16,342 | $ 39,267 | $ 32,980 |
Other comprehensive income (loss): | ||||
Cash flow hedges, net of $0 tax in all periods | (439) | 375 | (385) | 333 |
Foreign currency translation adjustment, net of $0 tax in all periods | (6,752) | 6,961 | (9,663) | 9,751 |
Other comprehensive income (loss) | (7,191) | 7,336 | (10,048) | 10,084 |
Comprehensive income | $ 8,784 | $ 23,678 | $ 29,219 | $ 43,064 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Statement of Comprehensive Income [Abstract] | ||||
Cash flow hedges, tax effect | $ 0 | $ 0 | $ 0 | $ 0 |
Foreign currency translation adjustment, tax effect | $ 0 | $ 0 | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEMENTS OF CASHFLOWS (Parenthetical) |
Jun. 30, 2018 |
---|---|
10.75% Senior Secured Notes | |
Stated interest rate (as percent) | 10.75% |
Senior Notes | 12% Senior Secured Notes | |
Stated interest rate (as percent) | 12.00% |
Senior Notes | 10.75% Senior Secured Notes | |
Stated interest rate (as percent) | 10.75% |
Senior Notes | 12% Senior Cash Pay Notes | |
Stated interest rate (as percent) | 12.00% |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS |
6 Months Ended |
---|---|
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS Basis of Presentation The terms “CURO," "we,” “our,” “us,” and the “Company,” refer to CURO Group Holdings Corp. and its directly and indirectly owned subsidiaries as a combined entity, except where otherwise stated. The term "CFTC" refers to CURO Financial Technologies Corp., a subsidiary of CURO, and its directly and indirectly owned subsidiaries as a consolidated entity, except where otherwise stated. We have prepared the accompanying unaudited Condensed Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (“US GAAP”), and with the accounting policies described in our 2017 Annual Report on Form 10-K. Certain information and note disclosures normally included in our annual financial statements prepared in accordance with US GAAP have been condensed or omitted, although we believe that the disclosures are adequate to enable a reasonable understanding of the information presented. The unaudited Condensed Consolidated Financial Statements and the accompanying notes reflect all adjustments, which are, in the opinion of management, necessary to present fairly our results of operations, financial position and cash flows for the periods presented. The adjustments consist solely of normal recurring adjustments. You should read the Condensed Consolidated Financial Statements in conjunction with the Consolidated Financial Statements and related Notes included in our 2017 Annual Report on Form 10-K. Interim results of operations are not necessarily indicative of results that may be expected for future interim periods or for the year ending December 31, 2018. We completed our initial public offering ("IPO") in December 2017. Prior to our IPO we effected a 36-for-1 split of our common stock. We have retroactively adjusted all share and per share data for all periods presented to reflect the stock split as if the stock split had occurred at the beginning of the earliest period presented. We qualify as an “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). As an emerging growth company, we have elected to take advantage of specified reduced reporting and other requirements that are otherwise generally required of public companies. Principles of Consolidation The Condensed Consolidated Financial Statements include the accounts of CURO and its wholly-owned subsidiaries. We have eliminated intercompany transactions and balances in consolidation. Use of Estimates The preparation of Condensed Consolidated Financial Statements in conformity with US 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. Estimates also affect the reported amounts of revenues and expenses during the periods reported. Some of the significant estimates that we have made in the accompanying Condensed Consolidated Financial Statements include allowances for loan losses, certain assumptions related to goodwill and intangibles, accruals related to self-insurance, Credit Services Organization ("CSO") guarantee liability and estimated tax liabilities. Actual results may differ from those estimates. Nature of Operations We are a growth-oriented, technology-enabled, highly-diversified consumer finance company serving a wide range of underbanked consumers in the United States ("U.S."), Canada, and the United Kingdom ("U.K."). Recently Adopted Accounting Pronouncements In May 2017, the Financial Accounting Standards Board ("FASB") issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting ("ASU 2017-09"). Under modification accounting, an entity is required to re-value its equity awards each time there is a modification to the terms of the awards. The provisions in ASU 2017-09 provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to account for the effects of a modification, unless certain conditions are met. The amendments in this update were effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. ASU 2017-09 was effective for us as of January 1, 2018. The adoption of this amendment did not have a material impact on our Consolidated Financial Statements. Recently Issued Accounting Pronouncements Not Yet Adopted In February 2018, FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive income ("ASU 2018-02"). Current US GAAP requires deferred tax liabilities and assets to be adjusted for the effect of a change in tax laws or rates with the effect included in income from continuing operations in the period the change is enacted, including items of other comprehensive income for which the related tax effects are presented in other comprehensive income (“stranded tax effects”). ASU 2018-02 allows, but does not require, companies to reclassify stranded tax effects caused by the Tax Cuts and Jobs Act of 2017 (the "2017 Tax Act") from accumulated other comprehensive income to retained earnings. Additionally, ASU 2018-02 requires new disclosures by all companies, whether they opt to do the reclassification or not. The provisions of ASU 2018-02 are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. Companies should apply the proposed amendments either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the 2017 Tax Act is recognized. We are currently assessing the impact adoption of ASU 2018-02 will have on our Consolidated Financial Statements. In September 2017, FASB issued ASU 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments ("ASU 2017-13"). ASU 2017-13 amends the early adoption date option for public entities related to the adoption of ASU No. 2014-09 and ASU No. 2016-02. We are currently assessing the impact adoption of Topic 606 and Topic 842 will have on our Consolidated Financial Statements. In January 2017, FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04"). ASU 2017-04 simplified the goodwill impairment test by eliminating Step 2 of the test which requires an entity to compute the implied fair value of goodwill. Instead, an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, and is limited to the amount of total goodwill allocated to that reporting unit. Under ASU 2017-04, an entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The provisions of ASU 2017-04 are effective for a public entity's annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019 and effective for us, as an emerging growth company, in fiscal years beginning after December 15, 2021. We are currently assessing the impact adoption of ASU 2017-04 will have on our Consolidated Financial Statements. In January 2017, FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the definition of a Business ("ASU 2017-01"). ASU 2017-01 narrows the definition of a business and provides a framework that gives an entity a basis for making reasonable judgments about whether a transaction involves an asset or a business and provides a screen to determine when a set (an integrated set of assets and activities) is not a business. The screen requires a determination that when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. If the screen is not met, ASU 2017-01 (i) requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (ii) remove the evaluation of whether a market participant could replace missing elements. The amendments provide a framework to assist entities in evaluating whether both an input and a substantive process are present. ASU 2017-01 is effective prospectively for public companies for annual periods beginning after December 15, 2017 including interim periods therein, and it will be effective for us, as an emerging growth company, for annual periods beginning after December 15, 2018 and interim periods beginning after December 15, 2019. We are currently assessing the impact adoption of ASU 2017-01 will have on our Consolidated Financial Statements. In November 2016, FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash ("ASU 2016-18"). ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. As a result, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 is effective for public companies for fiscal years beginning after December 15, 2017 and interim periods therein, and it will be effective for us, as an emerging growth company, for fiscal years beginning after December 15, 2018 and interim periods beginning after December 15, 2019. The amendments should be applied using a retrospective transition method to each period presented. We are currently assessing the impact adoption of ASU 2016-18 will have on our Consolidated Financial Statements. In August 2016, FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) (“ASU 2016-15”). The amendments in ASU 2016-15 provide guidance on eight specific cash flow issues, including debt prepayment or debt extinguishment costs, contingent consideration payments made after a business combination, distributions received from equity method investees and beneficial interests in securitization transactions. ASU 2016-15 is currently effective for public companies, and it will be effective for us, as an emerging growth company, for fiscal years beginning after December 15, 2018 and interim periods within fiscal years beginning after December 15, 2019. We are currently assessing the potential impact ASU 2016-15 will have on our Consolidated Statements of Cash Flows. In June 2016, FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” ("ASU 2016-13"). This ASU modifies the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the more timely recognition of losses. ASU 2016-13 will be effective for public companies for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, and it will be effective for us, as an emerging growth company, for fiscal years beginning after December 15, 2020 and interim periods within fiscal years beginning after December 15, 2021. We anticipate that ASU 2016-13 will impact our current process for measuring credit losses and are currently assessing the impact it will have on our Consolidated Financial Statements. In February 2016, FASB issued its new lease accounting guidance in ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 requires lessees to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (i) a lease liability, which is a lessee’s obligation to make lease payment arising from a lease, measured on a discounted basis; and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged and lessees will no longer be provided with a source of off-balance sheet financing. ASU 2016-02 will be effective for public companies for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, and it will be effective for us, as an emerging growth company, for fiscal years beginning after December 15, 2019 and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. We expect ASU 2016-02 will have an impact on our balance sheet with recognition of right-of-use assets which were previously operating leases. We are currently assessing the full impact ASU 2016-02 will have on our Consolidated Financial Statements and expect an estimate of impact in the second half of 2018. In January 2016, FASB issued ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”) which requires (i) equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, (ii) public entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes and (iii) separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables). ASU 2016-01 eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. ASU 2016-01 is currently effective for public companies, and it will be effective for us, as an emerging growth company, for fiscal years beginning after December 15, 2018 and interim periods within fiscal years beginning after December 15, 2019. We are currently assessing the impact this ASU will have on our Consolidated Financial Statements. In November 2015, FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”). ASU 2015-07 eliminates the requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. ASU 2015-17 is currently effective for public companies, and it will be effective for us, as an emerging growth company, for fiscal years beginning after December 15, 2017 and interim periods within fiscal years beginning after December 15, 2018. We do not expect that adoption of this amendment will have a material impact on our Consolidated Financial Statements. In August 2015, FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606) (“ASU 2015-14”), which deferred the effect date of ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), for public companies to fiscal years beginning after December 15, 2017 and interim periods within those fiscal years, and it will be effective for us, as an emerging growth company, for fiscal years beginning after December 15, 2018 and interim periods within fiscal years beginning after December 15, 2019. If we are no longer an emerging growth company as of December 31, 2018, we must adopt the provision of this standard retroactively as of January 1, 2018. In May 2014, FASB issued ASU 2014-09 which amended the existing accounting standards for revenue recognition. ASU 2014-09 establishes principles for recognizing revenue upon the transfer of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services. We do not expect that adoption of ASU 2014-09 will have a material impact on our Consolidated Financial Statements. |
VARIABLE INTEREST ENTITIES |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES We hold a credit facility whereby we sell certain loan receivables to wholly-owned, bankruptcy-remote special purpose subsidiaries ("VIEs") and we incur additional debt through the Non-Recourse U.S. SPV facility (See Note 5 - Long-Term Debt for further discussion) that is collateralized by these underlying loan receivables. We have determined that we are the primary beneficiary of the VIEs and are required to consolidate them. We include the assets and liabilities related to the VIEs in our Consolidated Financial Statements and we account for them as secured borrowings. We parenthetically disclose on our Consolidated Balance Sheets the VIEs’ assets that can only be used to settle the VIEs' obligations and liabilities if the VIEs’ creditors have no recourse against our general credit. The carrying amounts of consolidated VIEs' assets and liabilities associated with our special purpose subsidiaries were as follows:
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LOANS RECEIVABLE AND REVENUE |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOANS RECEIVABLE AND REVENUE | LOANS RECEIVABLE AND REVENUE The following table summarizes revenue by product for the periods indicated:
The following tables summarize Loans receivable by product and the related delinquent loans receivable at June 30, 2018:
The following tables summarize Loans receivable by product and the related delinquent loans receivable at December 31, 2017:
The following tables summarize loans guaranteed by us under our CSO programs and the related delinquent receivables at June 30, 2018:
The following tables summarize loans guaranteed by us under our CSO programs and the related delinquent receivables at December 31, 2017:
The following table summarizes activity in the allowance for loan losses during the three months ended June 30, 2018:
The following table summarizes activity in the CSO guarantee liability during the three months ended June 30, 2018:
The following table summarizes activity in the allowance for loan losses and the CSO guarantee liability, in total, during the three months ended June 30, 2018:
The following table summarizes activity in the allowance for loan losses during the three months ended June 30, 2017:
The following table summarizes activity in the CSO guarantee liability during the three months ended June 30, 2017:
The following table summarizes activity in the allowance for loan losses and the CSO guarantee liability, in total, during the three months ended June 30, 2017:
The following table summarizes activity in the allowance for loan losses during the six months ended June 30, 2018:
The following table summarizes activity in the CSO guarantee liability during the six months ended June 30, 2018:
The following table summarizes activity in the allowance for loan losses and the CSO guarantee liability, in total, during the six months ended June 30, 2018:
The following table summarizes activity in the allowance for loan losses during the six months ended June 30, 2017:
The following table summarizes activity in the CSO guarantee liability during the six months ended June 30, 2017:
The following table summarizes activity in the allowance for loan losses and the CSO guarantee liability, in total, during the six months ended June 30, 2017:
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CREDIT SERVICES ORGANIZATION |
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Jun. 30, 2018 | |
Guarantees [Abstract] | |
CREDIT SERVICES ORGANIZATION | CREDIT SERVICES ORGANIZATION The CSO fee receivable amounts under our CSO programs were $11.4 million and $14.5 million at June 30, 2018 and December 31, 2017, respectively. As noted, we bear the risk of loss through our guarantee to purchase any defaulted customer loans from the lenders. The terms of these loans range from three to 18 months. As of June 30, 2018 and December 31, 2017, the maximum amount payable under all such guarantees was $58.7 million and $65.2 million, respectively. Our guarantee liability was $11.6 million and $17.8 million at June 30, 2018 and December 31, 2017, respectively. We have placed $15.2 million and $17.9 million in collateral accounts for the lenders at June 30, 2018 and December 31, 2017, respectively, which is reflected in "Prepaid expenses and other" in the Condensed Consolidated Balance Sheets. The balances required to be maintained in these collateral accounts vary based upon lender but are typically based on a percentage of the outstanding loan balances held by the lender. The percentage of outstanding loan balances required for collateral is defined within the terms agreed to between us and each such lender. |
LONG-TERM DEBT |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt consisted of the following:
Senior Secured Notes In February and November 2017, CFTC issued $470.0 million and $135.0 million, respectively, of 12.00% Senior Secured Notes due March 1, 2022 ("Senior Secured Notes"). The February issuance refinanced similar notes that were nearing maturity, and the extinguishment of the existing notes resulted in a pretax loss of $12.5 million during the six months ended June 30, 2017. In connection with these Senior Secured Notes we capitalized financing costs of approximately $18.3 million, the balance of which is included in the Condensed Consolidated Balance Sheets as a component of Long-term debt and is being amortized over the term of the Senior Secured Notes and included as a component of interest expense. On February 5, 2018 CFTC issued a notice of redemption for $77.5 million of its Senior Secured Notes (the transaction whereby the Senior Secured Notes were partially redeemed, the “Redemption”). The Redemption occurred on March 7, 2018 at a price equal to 112.00% of the principal amount of the Senior Secured Notes redeemed, plus accrued and unpaid interest paid thereon, to the date of Redemption. The Redemption price and the amortization of a corresponding portion of the capitalized financing costs resulted in a loss on Redemption of $11.7 million. Following the Redemption, $527.5 million of the original outstanding principal amount of the Senior Secured Notes remain outstanding. CFTC conducted the Redemption pursuant to the Indenture governing the Senior Secured Notes (the “Indenture”), dated as of February 15, 2017, by and among CFTC, the guarantors party thereto and TMI Trust Company, as trustee and collateral agent. Consistent with the terms of the Indenture, CFTC used a portion of the cash proceeds from our IPO to redeem such Senior Secured Notes. Subject to the provisions of its Senior Secured Notes, CFTC is required to make an offer to purchase the maximum principal amount of Senior Secured Notes that may be redeemed with 50% of its Excess Cash Flow (as defined in the agreement) within 125 days after the end of each fiscal year commencing with the fiscal year ended December 31, 2017. CFTC is not required to make an offer unless its Excess Cash Flow exceeds $5.0 million (with lesser amounts being carried forward for purposes of determining whether the $5.0 million threshold has been met for any future period). Upon completion of each Excess Cash Flow offer, the Excess Cash Flow amount is reset at zero. On April 5, 2018, CFTC initiated an offer to purchase up to $37.7 million of its Senior Secured Notes at par, which represented 50% of its Excess Cash Flow for the fiscal year ended December 31, 2017. The offer expired on May 2, 2018 and did not result in the tender of any Senior Secured Notes. According to the terms of the Indenture, the Excess Cash Flow amount has been reset at zero. As of June 30, 2018, CFTC was in full compliance with the covenants and other provisions of the Senior Secured Notes. Non-Recourse U.S. SPV Facility In November 2016, CURO Receivables Finance I, LLC, a Delaware limited liability company (the “SPV Borrower”) and a wholly-owned subsidiary, entered into a five-year revolving credit facility with Victory Park Management, LLC and certain other lenders that provides an $80.0 million term loan and $70.0 million revolving borrowing capacity that can expand over time (“Non-Recourse U.S. SPV Facility”). As of June 30, 2018, the SPV Borrower was in full compliance with the covenants and other provisions of the Non-Recourse U.S. SPV Facility. Senior Revolver In September 2017, CFTC and CURO Intermediate Holdings Corp. entered into a $25.0 million Senior Secured Revolving Loan Facility with BayCoast Bank (the “Senior Revolver”). The terms of the Senior Revolver generally conform to the related provisions in the Indenture dated February 15, 2017 for our Senior Secured Notes and complements our other financing sources, while providing seasonal short-term liquidity. In February 2018, the Senior Revolver capacity was increased to $29.0 million as permitted by the Indenture to the Senior Secured Notes based upon consolidated tangible assets. The Senior Revolver is now syndicated with participation by a second bank. There is $29.0 million maximum availability under the Senior Revolver, including up to $5.0 million of standby letters of credit, for a one-year term, renewable for successive terms following annual review. The Senior Revolver was undrawn at June 30, 2018 and December 31, 2017. As of June 30, 2018, CFTC and CURO Intermediate Holdings Corp. were in full compliance with the covenants and other provisions of the Senior Revolver. Cash Money Revolving Credit Facility Cash Money Cheque Cashing, Inc., one of our Canadian subsidiaries, maintains a C$7.3 million revolving credit facility with Royal Bank of Canada (the "Cash Money Revolving Credit Facility"), which provides short-term liquidity required to meet the working capital needs of our Canadian operations. Aggregate draws under this facility are limited to the lesser of: (i) the borrowing base, which is defined as a percentage of cash, deposits in transit and accounts receivable, and (ii) C$7.3 million. As of December 31, 2017, the borrowing capacity under our revolving credit facility was reduced by C$0.3 million in stand-by-letters of credit. The Cash Money Revolving Credit Facility is collateralized by substantially all of Cash Money’s assets and contains various covenants that include, among other things, that the aggregate borrowings outstanding under the facility not exceed the borrowing base, restrictions on the encumbrance of assets and the creation of indebtedness. Borrowings under the Cash Money Revolving Credit Facility bear interest (per annum) at the prime rate of a Canadian chartered bank plus 1.95%. The Cash Money Revolving Credit Facility was undrawn at June 30, 2018 and December 31, 2017. In July 2018 the Cash Money Revolving Credit Facility capacity was increased from C$7.3 million to C$10.0 million. |
SHARE-BASED COMPENSATION |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION On November 8, 2017, our stockholders approved a new incentive plan (“2017 Incentive Plan”). The 2017 Incentive Plan provides for the issuance of up to 5.0 million shares, subject to certain adjustment provisions, for the granting of stock options, restricted stock awards, restricted stock units (“RSUs”), stock appreciation rights, performance awards and other awards that may be settled in or based upon our common stock. Awards may be granted to certain of our officers, employees, consultants and directors. The 2017 Incentive Plan provides that shares of common stock subject to awards granted become available for issuance if such awards expire, terminate, are canceled for any reason, or are forfeited by the recipient. RSUs are typically valued at the date of grant based on the value of our common stock and are expensed using the straight-line method over the service period. Grants of RSUs do not confer full stockholder rights such as voting rights and cash dividends, but provide for additional dividend equivalent RSU awards in lieu of cash dividends. Unvested shares of restricted stock units may be forfeited upon termination of employment depending on the circumstances of the termination, or failure to achieve the required performance condition, if applicable. A summary of the status of restricted stock units as of June 30, 2018 and changes during the six months ended June 30, 2018 is presented in the following table:
Share-based compensation expense during the three months ended June 30, 2018 and 2017, which includes compensation costs from stock options and RSUs, was $2.2 million and $0.1 million, respectively, and during the six months ended June 30, 2018 and 2017 was $4.0 million and $0.2 million, respectively, and is included in the Condensed Consolidated Statements of Income as a component of "Corporate, district and other" expense. The increased expense during the six months ended June 30, 2018 is primarily due to grants of RSUs in December 2017, as further disclosed in our 2017 Annual Report on Form 10-K. As of June 30, 2018, there was $18.4 million of unrecognized compensation cost related to share-based awards, which we will recognize over a weighted-average period of 2.4 years. |
INCOME TAXES |
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Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our effective tax rate was 25.0% and 39.4% during the three months ended June 30, 2018 and 2017, respectively. Our effective tax rate was 29.9% and 37.8% during the six months ended June 30, 2018 and 2017, respectively. On December 22, 2017, the 2017 Tax Act became law, which enacted various changes to the U.S. corporate tax law. Some of the most significant provisions affecting us include a reduced U.S. corporate income tax rate from 35% to 21% effective in 2018, a one-time “deemed repatriation” tax on unremitted earnings accumulated in non-U.S. jurisdictions and reported on the 2017 corporate income tax return, and a 2018 and forward minimum tax on global intangible low-taxed income ("GILTI"). At 2017 year-end, we recorded an estimated provisional deemed repatriation tax of $8.1 million. Subsequently, the IRS issued additional guidance regarding the calculation of the deemed repatriation tax and we recorded an additional accrual of $1.2 million during the period ended March 31, 2018, increasing the effective tax rate by 2.1% for the six months ended June 30, 2018. In 2018, we recorded an estimated GILTI tax of $0.6 million increasing the effective tax rate by 1.1% for the six months ended June 30, 2018. Additionally, we have not recorded a tax benefit for losses in the UK resulting in an increase of 2.4% and 2.5% to the effective tax rate during the six months ended June 30, 2018 and 2017, respectively. As of June 30, 2018, we estimated and provided U.S. net tax of $9.9 million on our cumulative undistributed non-U.S. earnings as part of the 2017 repatriation tax provision and the 2018 GILTI tax in the 2017 Tax Act. We intend to reinvest our foreign earnings indefinitely in our non-U.S. operations and therefore have not provided for any non-U.S. withholding tax that would be assessed on dividend distributions. If the earnings of $165.8 million were distributed to the U.S., we would be subject to estimated Canadian withholding taxes of approximately $8.3 million. In the event the earnings were distributed to the U.S., we would adjust our income tax provision for the period and would determine the amount of foreign tax credit that would be available. |
FINANCIAL INSTRUMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. We are 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 market data obtained from independent sources, or unobservable, meaning those that reflect our own estimate about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. Accounting standards establish a three-level fair value hierarchy based upon the assumptions (inputs) used to price assets or liabilities. The hierarchy requires us 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 quoted prices in active markets for identical assets or liabilities. 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 our own judgments about the assumptions market participants would use in pricing the asset or liability since limited market data exists. We develop these inputs based on the best information available, including our own data. Financial Assets and Liabilities Not Measured at Fair Value The table below presents the carrying amounts and estimated fair values of assets and liabilities that were not recorded at fair value on the Condensed Consolidated Balance Sheets at June 30, 2018.
The table below presents the carrying amounts and estimated fair values of assets and liabilities that were not recorded at fair value on the Condensed Consolidated Balance Sheets at December 31, 2017.
Loans receivable are carried on the Condensed Consolidated Balance Sheets net of the allowance for estimated loan losses, which we calculate primarily based upon models that back-test subsequent collections history for each type of loan product. The unobservable inputs used to calculate the carrying value include additional quantitative factors, such as current default trends and changes to the portfolio mix are also considered in evaluating the accuracy of the models, as well as additional qualitative factors such as the impact of new loan products, changes to underwriting criteria or lending policies, new store development or entrance into new markets, changes in jurisdictional regulations or laws, recent credit trends and general economic conditions. Loans have terms ranging up to 60 months. The carrying value of loans receivable approximates the fair value. In connection with our CSO programs, we guarantee consumer loan payment obligations to unrelated third-party lenders for loans that we arrange for consumers on the third-party lenders’ behalf. We are required to purchase from the lender defaulted loans we have guaranteed. The estimated fair value of the guarantee liability related to CSO loans we have guaranteed was $11.6 million and $17.8 million as of June 30, 2018 and December 31, 2017, respectively. We record the initial measurement of this guarantee liability at fair value using Level 3 inputs with subsequent measurement of the liability measured as a contingent loss. The unobservable inputs used to calculate fair value include the nature of the loan products, the creditworthiness of the borrowers in the customer base, our historical loan default history for similar loans, industry loan default history, historical collection rates on similar products, current default trends, past-due account roll rates, changes to underwriting criteria or lending policies, new store development or entrance into new markets, changes in jurisdictional regulations or laws, recent credit trends and general economic conditions. The fair value of our Senior Secured Notes was based on broker quotations. The fair value of the Non-Recourse U.S. SPV facility was based on the cash needed for final settlement. Derivative Financial Instrument We seek to minimize risks from foreign currency rate fluctuations on anticipated transactions in the ordinary course of business through the use of cash flow hedges. During the six months ended June 30, 2018, we entered into a series of cash flow hedges in which the hedging instruments were forwards to purchase £7.9 million. These contracts will complete in the three months ended September 30, 2018. We performed an assessment that determined all critical terms of the hedging instrument and the hedged transaction match and, as such, have qualitatively concluded that changes in the hedge instrument’s intrinsic value will completely offset the change in the expected cash flows based on changes in the spot rate. Since the effectiveness of this hedge is assessed based on changes in the hedge instrument’s intrinsic value, the change in the time value of the contract would be excluded from the assessment of hedge effectiveness. We recorded changes in the hedge instrument’s intrinsic value, to the extent that they were effective as a hedge, in "Other comprehensive income." As of June 30, 2018 we have recorded an unrealized loss of $0.4 million in "Other comprehensive income" associated with this hedge. Foreign Currency Forward Contract On June 29, 2018, we entered into a forward contract that is not designated to receive hedge accounting treatment. The purpose of this forward contract is to reduce income statement volatility resulting from our foreign currency denominated assets and liabilities in Canada and to protect the cash required to settle those items. The forward contract is recorded at fair value on the balance sheet with changes in the fair value being recorded in the income statement. As of June 30, 2018, the forward contract did not have a fair value and did not impact the Condensed Consolidated Financial Statements. Purchase of Cognical Holdings Inc. Preferred Shares During the three months ended March 31, 2018, we purchased 560,872 additional preferred shares of Cognical Holdings, Inc. ("Cognical") for $1.0 million. As a result of this transaction, along with share purchases during 2017, we currently own 10.4% of the equity of Cognical. We record these purchases in "Other assets" on our Consolidated Balance Sheets. |
STOCKHOLDERS' EQUITY |
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Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY In connection with our IPO in December 2017, the underwriters had a 30-day option to purchase up to an additional 1.0 million shares at the initial public offering prices, less the underwriting discount to over-allotments, if any. The underwriters exercised this option and purchased 1.0 million shares on January 5, 2018. The exercise of this option provided additional proceeds to us of $13.1 million. |
EARNINGS PER SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | EARNINGS PER SHARE The following presents the computation of basic earnings per share (in thousands, except per share amounts):
The following computation reconciles the differences between the basic and diluted earnings per share presentations (in thousands, except per share amounts):
Potential common shares that would have the effect of increasing diluted earnings per share or decreasing diluted loss per share are considered to be anti-dilutive and as such, we do not include these shares in calculating "Diluted earnings per share." For the three and six months ended June 30, 2018 and 2017, there were no potential common shares excluded from the calculation of diluted earnings per share because their effect was anti-dilutive. |
SUPPLEMENTAL CASH FLOW INFORMATION |
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Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION The following table provides supplemental cash flow information:
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SEGMENT REPORTING |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT REPORTING | SEGMENT REPORTING We prepare segment information on the same basis that our chief operating decision maker reviews financial information for operational decision making purposes. We have three reportable operating segments: the U.S., Canada and the U.K. The segment performance measure below is based on gross margin. In management’s evaluation of performance, certain costs, such as corporate expenses, district expenses and interest expense, are not allocated by segment. Accordingly the following reporting segment results do not include such allocated costs. There are no intersegment revenues, and we determined the amounts below in accordance with the same accounting principles used in our Condensed Consolidated Financial Statements. The following table illustrates summarized financial information concerning our reportable segments.
The following table provides the proportion of gross loans receivable by segment:
The following table illustrates our 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:
Our chief operating decision maker does not review assets by segment for purposes of allocating resources or decision-making purposes; therefore, total assets by segment are not disclosed. |
CONTINGENT LIABILITIES |
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Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENT LIABILITIES | CONTINGENT LIABILITIES Harrison, et al v. Principal Investments, Inc. et al During the period relevant to this class action litigation, we pursued in excess of 16,000 claims in the limited actions and jurisdiction court in Clark County, Nevada, seeking payment of loans on which customers had defaulted. We utilized outside counsel to file these debt collection lawsuits. On Scene Mediations, a process serving company, was employed to serve the summons and petitions in the majority of these cases. In an unrelated matter, the principal of On Scene Mediations was convicted of multiple accounts of perjury and filing false affidavits to obtain judgments on behalf of a Las Vegas collection agency. In September 2010, we were sued by four former customers in a proposed class action suit filed in the District Court in Clark County, Nevada. The plaintiffs in this case claimed that they, and others in the proposed class, were not properly served notice of the debt collection lawsuits by the Company. On June 7, 2017, the parties reached a settlement in this matter and we accrued approximately $2.3 million as a result of this settlement. On October 30, 2017, the District Court in Clark County, Nevada, issued final approval of the class settlement. We paid the approved settlement amount and released the related liability. Reimbursement Offer; Possible Changes in Payment Practices During 2017, it was determined that a limited universe of borrowers may have incurred bank overdraft or non-sufficient funds fees because of possible confusion about certain electronic payments we initiated on their loans. As a result, we decided to reimburse such fees through payments or credits against outstanding loan balances, subject to per-customer dollar limitations, upon receipt of (i) claims from potentially affected borrowers stating that they were in fact confused by our practices and (ii) bank statements from such borrowers showing that fees for which reimbursement is sought were incurred at a time that such borrowers might reasonably have been confused about our practices. As of June 30, 2018, net of payments made, a liability of $1.8 million remains for this matter. Additionally, in June 2018, we discontinued the use of secondary payment cards for affected borrowers referenced above who did not explicitly reauthorize the use of secondary payment cards. For those borrowers, in the event we were not able to obtain payment through the bank account or payment card listed on the borrower’s application, we will need to rely exclusively on other collection methods such as delinquency notices and/or collection calls. The discontinuation for affected borrowers of our current use of secondary cards will increase collections costs and reduce collections effectiveness. City of Austin We were cited on July 5, 2016 by the City of Austin, Texas for alleged violations of the Austin ordinance addressing products offered by CSOs. The Austin ordinance regulates aspects of products offered under our Credit Access Business programs, including loan sizes and repayment terms. We believe that: (i) the Austin ordinance (like its counterparts elsewhere in the state) conflicts with Texas state law and (ii) our product in any event complies with the ordinance, when the ordinance is properly construed. The Austin Municipal Court agreed with our position that the ordinance conflicts with Texas law and, accordingly, did not address our second argument. In September 2017, the Travis County Court reversed the Municipal Court’s decision and remanded the case for further proceedings. We do not anticipate having a final determination of the lawfulness of our CAB program under the Austin ordinance (and similar ordinances in other Texas cities) in the near future. A final adverse decision could potentially result in material monetary liability in Austin and elsewhere in Texas, and would force us to restructure the loans we originate in Austin and elsewhere in Texas. Other Legal Matters We are also a defendant in certain routine litigation matters encountered in the ordinary course of our business. Certain of these matters may be covered to an extent by insurance. In the opinion of management, based upon the advice of legal counsel, the likelihood is remote that the impact of any pending legal proceedings and claims, either individually or in the aggregate, would have a material adverse effect on our Consolidated Financial Statements. |
CONDENSED CONSOLIDATING FINANCIAL INFORMATION |
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION | CONDENSED CONSOLIDATING FINANCIAL INFORMATION In February 2017, CFTC issued $470.0 million aggregate principal amount Senior Secured Notes, the proceeds of which were used together with available cash, to (i) redeem the outstanding 10.75% Senior Secured Notes due 2018 of our wholly owned subsidiary, CURO Intermediate, (ii) redeem the outstanding 12.00% Senior Cash Pay Notes due 2017 and (iii) pay fees, expenses, premiums and accrued interest in connection with the offering. CFTC sold the Senior Secured Notes to qualified institutional buyers under Rule 144A of the Securities Act of 1933, as amended (the “Securities Act”); or outside the U.S. to non-U.S. persons in compliance with Regulation S of the Securities Act. In November 2017, CFTC issued $135.0 million aggregate principal amount of additional Senior Secured Notes in a private offering exempt from the registration requirements of the Securities Act (the "Additional Notes Offering"). CFTC used the proceeds from the Additional Notes Offering, together with available cash, to (i) pay a cash dividend, in an amount of $140.0 million to us, CFTC’s sole stockholder, and ultimately our stockholders and (ii) pay fees, expenses, premiums and accrued interest in connection with the Additional Notes Offering. CFTC received the consent of the holders of a majority of the outstanding principal amount of the current Senior Secured Notes to a one-time waiver with respect to the restrictions contained in Section 5.07(a) of the indenture governing the Senior Secured Notes to permit the dividend. On March 7, 2018, CFTC redeemed $77.5 million of the Senior Secured Notes at a price equal to 112.00% of the principal amount plus accrued and unpaid interest to the date of redemption. Following the redemption, $527.5 million of the original outstanding principal amount of the Senior Secured Notes remain outstanding. The redemption was conducted pursuant to the indenture governing the Senior Secured Notes, dated as of February 15, 2017, by and among CFTC, the guarantors party thereto and TMI Trust Company, as trustee and collateral agent. Consistent with the terms of the indenture, CFTC used a portion of the cash proceeds from our IPO, to redeem such Senior Secured Notes. See Note 5, "Long-Term Debt," for additional details. The following condensed consolidating financing information, which has been prepared in accordance with the requirements for presentation of Rule 3-10(d) of Regulation S-X promulgated under the Securities Act, presents the condensed consolidating financial information separately for:
Condensed Consolidating Balance Sheets
Condensed Consolidating Statements of Income
Condensed Consolidating Statements of Cash Flows
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS (Policies) |
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Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The terms “CURO," "we,” “our,” “us,” and the “Company,” refer to CURO Group Holdings Corp. and its directly and indirectly owned subsidiaries as a combined entity, except where otherwise stated. The term "CFTC" refers to CURO Financial Technologies Corp., a subsidiary of CURO, and its directly and indirectly owned subsidiaries as a consolidated entity, except where otherwise stated. We have prepared the accompanying unaudited Condensed Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (“US GAAP”), and with the accounting policies described in our 2017 Annual Report on Form 10-K. Certain information and note disclosures normally included in our annual financial statements prepared in accordance with US GAAP have been condensed or omitted, although we believe that the disclosures are adequate to enable a reasonable understanding of the information presented. The unaudited Condensed Consolidated Financial Statements and the accompanying notes reflect all adjustments, which are, in the opinion of management, necessary to present fairly our results of operations, financial position and cash flows for the periods presented. The adjustments consist solely of normal recurring adjustments. You should read the Condensed Consolidated Financial Statements in conjunction with the Consolidated Financial Statements and related Notes included in our 2017 Annual Report on Form 10-K. Interim results of operations are not necessarily indicative of results that may be expected for future interim periods or for the year ending December 31, 2018. We completed our initial public offering ("IPO") in December 2017. Prior to our IPO we effected a 36-for-1 split of our common stock. We have retroactively adjusted all share and per share data for all periods presented to reflect the stock split as if the stock split had occurred at the beginning of the earliest period presented. We qualify as an “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). As an emerging growth company, we have elected to take advantage of specified reduced reporting and other requirements that are otherwise generally required of public companies. |
Principles of Consolidation | Principles of Consolidation The Condensed Consolidated Financial Statements include the accounts of CURO and its wholly-owned subsidiaries. We have eliminated intercompany transactions and balances in consolidation. |
Use of Estimates | Use of Estimates The preparation of Condensed Consolidated Financial Statements in conformity with US 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. Estimates also affect the reported amounts of revenues and expenses during the periods reported. Some of the significant estimates that we have made in the accompanying Condensed Consolidated Financial Statements include allowances for loan losses, certain assumptions related to goodwill and intangibles, accruals related to self-insurance, Credit Services Organization ("CSO") guarantee liability and estimated tax liabilities. Actual results may differ from those estimates. |
Recently Adopted and Issued Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements In May 2017, the Financial Accounting Standards Board ("FASB") issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting ("ASU 2017-09"). Under modification accounting, an entity is required to re-value its equity awards each time there is a modification to the terms of the awards. The provisions in ASU 2017-09 provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to account for the effects of a modification, unless certain conditions are met. The amendments in this update were effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. ASU 2017-09 was effective for us as of January 1, 2018. The adoption of this amendment did not have a material impact on our Consolidated Financial Statements. Recently Issued Accounting Pronouncements Not Yet Adopted In February 2018, FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive income ("ASU 2018-02"). Current US GAAP requires deferred tax liabilities and assets to be adjusted for the effect of a change in tax laws or rates with the effect included in income from continuing operations in the period the change is enacted, including items of other comprehensive income for which the related tax effects are presented in other comprehensive income (“stranded tax effects”). ASU 2018-02 allows, but does not require, companies to reclassify stranded tax effects caused by the Tax Cuts and Jobs Act of 2017 (the "2017 Tax Act") from accumulated other comprehensive income to retained earnings. Additionally, ASU 2018-02 requires new disclosures by all companies, whether they opt to do the reclassification or not. The provisions of ASU 2018-02 are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. Companies should apply the proposed amendments either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the 2017 Tax Act is recognized. We are currently assessing the impact adoption of ASU 2018-02 will have on our Consolidated Financial Statements. In September 2017, FASB issued ASU 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments ("ASU 2017-13"). ASU 2017-13 amends the early adoption date option for public entities related to the adoption of ASU No. 2014-09 and ASU No. 2016-02. We are currently assessing the impact adoption of Topic 606 and Topic 842 will have on our Consolidated Financial Statements. In January 2017, FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04"). ASU 2017-04 simplified the goodwill impairment test by eliminating Step 2 of the test which requires an entity to compute the implied fair value of goodwill. Instead, an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, and is limited to the amount of total goodwill allocated to that reporting unit. Under ASU 2017-04, an entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The provisions of ASU 2017-04 are effective for a public entity's annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019 and effective for us, as an emerging growth company, in fiscal years beginning after December 15, 2021. We are currently assessing the impact adoption of ASU 2017-04 will have on our Consolidated Financial Statements. In January 2017, FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the definition of a Business ("ASU 2017-01"). ASU 2017-01 narrows the definition of a business and provides a framework that gives an entity a basis for making reasonable judgments about whether a transaction involves an asset or a business and provides a screen to determine when a set (an integrated set of assets and activities) is not a business. The screen requires a determination that when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. If the screen is not met, ASU 2017-01 (i) requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (ii) remove the evaluation of whether a market participant could replace missing elements. The amendments provide a framework to assist entities in evaluating whether both an input and a substantive process are present. ASU 2017-01 is effective prospectively for public companies for annual periods beginning after December 15, 2017 including interim periods therein, and it will be effective for us, as an emerging growth company, for annual periods beginning after December 15, 2018 and interim periods beginning after December 15, 2019. We are currently assessing the impact adoption of ASU 2017-01 will have on our Consolidated Financial Statements. In November 2016, FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash ("ASU 2016-18"). ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. As a result, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 is effective for public companies for fiscal years beginning after December 15, 2017 and interim periods therein, and it will be effective for us, as an emerging growth company, for fiscal years beginning after December 15, 2018 and interim periods beginning after December 15, 2019. The amendments should be applied using a retrospective transition method to each period presented. We are currently assessing the impact adoption of ASU 2016-18 will have on our Consolidated Financial Statements. In August 2016, FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) (“ASU 2016-15”). The amendments in ASU 2016-15 provide guidance on eight specific cash flow issues, including debt prepayment or debt extinguishment costs, contingent consideration payments made after a business combination, distributions received from equity method investees and beneficial interests in securitization transactions. ASU 2016-15 is currently effective for public companies, and it will be effective for us, as an emerging growth company, for fiscal years beginning after December 15, 2018 and interim periods within fiscal years beginning after December 15, 2019. We are currently assessing the potential impact ASU 2016-15 will have on our Consolidated Statements of Cash Flows. In June 2016, FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” ("ASU 2016-13"). This ASU modifies the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the more timely recognition of losses. ASU 2016-13 will be effective for public companies for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, and it will be effective for us, as an emerging growth company, for fiscal years beginning after December 15, 2020 and interim periods within fiscal years beginning after December 15, 2021. We anticipate that ASU 2016-13 will impact our current process for measuring credit losses and are currently assessing the impact it will have on our Consolidated Financial Statements. In February 2016, FASB issued its new lease accounting guidance in ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 requires lessees to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (i) a lease liability, which is a lessee’s obligation to make lease payment arising from a lease, measured on a discounted basis; and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged and lessees will no longer be provided with a source of off-balance sheet financing. ASU 2016-02 will be effective for public companies for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, and it will be effective for us, as an emerging growth company, for fiscal years beginning after December 15, 2019 and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. We expect ASU 2016-02 will have an impact on our balance sheet with recognition of right-of-use assets which were previously operating leases. We are currently assessing the full impact ASU 2016-02 will have on our Consolidated Financial Statements and expect an estimate of impact in the second half of 2018. In January 2016, FASB issued ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”) which requires (i) equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, (ii) public entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes and (iii) separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables). ASU 2016-01 eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. ASU 2016-01 is currently effective for public companies, and it will be effective for us, as an emerging growth company, for fiscal years beginning after December 15, 2018 and interim periods within fiscal years beginning after December 15, 2019. We are currently assessing the impact this ASU will have on our Consolidated Financial Statements. In November 2015, FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”). ASU 2015-07 eliminates the requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. ASU 2015-17 is currently effective for public companies, and it will be effective for us, as an emerging growth company, for fiscal years beginning after December 15, 2017 and interim periods within fiscal years beginning after December 15, 2018. We do not expect that adoption of this amendment will have a material impact on our Consolidated Financial Statements. In August 2015, FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606) (“ASU 2015-14”), which deferred the effect date of ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), for public companies to fiscal years beginning after December 15, 2017 and interim periods within those fiscal years, and it will be effective for us, as an emerging growth company, for fiscal years beginning after December 15, 2018 and interim periods within fiscal years beginning after December 15, 2019. If we are no longer an emerging growth company as of December 31, 2018, we must adopt the provision of this standard retroactively as of January 1, 2018. In May 2014, FASB issued ASU 2014-09 which amended the existing accounting standards for revenue recognition. ASU 2014-09 establishes principles for recognizing revenue upon the transfer of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services. We do not expect that adoption of ASU 2014-09 will have a material impact on our Consolidated Financial Statements. |
Variable Interest Entity | We have determined that we are the primary beneficiary of the VIEs and are required to consolidate them. We include the assets and liabilities related to the VIEs in our Consolidated Financial Statements and we account for them as secured borrowings. We parenthetically disclose on our Consolidated Balance Sheets the VIEs’ assets that can only be used to settle the VIEs' obligations and liabilities if the VIEs’ creditors have no recourse against our general credit. |
Fair Value of Financial Instruments | Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. We are 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 market data obtained from independent sources, or unobservable, meaning those that reflect our own estimate about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. Accounting standards establish a three-level fair value hierarchy based upon the assumptions (inputs) used to price assets or liabilities. The hierarchy requires us 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 quoted prices in active markets for identical assets or liabilities. 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 our own judgments about the assumptions market participants would use in pricing the asset or liability since limited market data exists. We develop these inputs based on the best information available, including our own data. |
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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 associated with our special purpose subsidiaries were as follows:
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LOANS RECEIVABLE AND REVENUE (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Revenue by Product | The following table summarizes revenue by product for the periods indicated:
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Summary of Loans Receivable by Product and Related Delinquent Loans | The following tables summarize Loans receivable by product and the related delinquent loans receivable at June 30, 2018:
The following tables summarize Loans receivable by product and the related delinquent loans receivable at December 31, 2017:
The following tables summarize loans guaranteed by us under our CSO programs and the related delinquent receivables at June 30, 2018:
The following tables summarize loans guaranteed by us under our CSO programs and the related delinquent receivables at December 31, 2017:
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Summary of the Activity in the Allowance for Loan Losses | The following table summarizes activity in the allowance for loan losses during the six months ended June 30, 2018:
The following table summarizes activity in the allowance for loan losses during the three months ended June 30, 2017:
The following table summarizes activity in the allowance for loan losses during the six months ended June 30, 2017:
The following table summarizes activity in the allowance for loan losses during the three months ended June 30, 2018:
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Summary of Activity in Credit Services Organization Guarantee Liability | The following table summarizes activity in the CSO guarantee liability during the six months ended June 30, 2017:
The following table summarizes activity in the CSO guarantee liability during the six months ended June 30, 2018:
The following table summarizes activity in the CSO guarantee liability during the three months ended June 30, 2018:
The following table summarizes activity in the CSO guarantee liability during the three months ended June 30, 2017:
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Summary of Activity in Allowance for Loan Losses, Credit Services Organization Guarantee Liability | The following table summarizes activity in the allowance for loan losses and the CSO guarantee liability, in total, during the six months ended June 30, 2017:
The following table summarizes activity in the allowance for loan losses and the CSO guarantee liability, in total, during the six months ended June 30, 2018:
The following table summarizes activity in the allowance for loan losses and the CSO guarantee liability, in total, during the three months ended June 30, 2017:
The following table summarizes activity in the allowance for loan losses and the CSO guarantee liability, in total, during the three months ended June 30, 2018:
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LONG-TERM DEBT (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | Long-term debt consisted of the following:
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SHARE-BASED COMPENSATION Tables (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restricted Stock Activity | A summary of the status of restricted stock units as of June 30, 2018 and changes during the six months ended June 30, 2018 is presented in the following table:
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FINANCIAL INSTRUMENTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Assets and Liabilities Not Measured At Fair Value | The table below presents the carrying amounts and estimated fair values of assets and liabilities that were not recorded at fair value on the Condensed Consolidated Balance Sheets at June 30, 2018.
The table below presents the carrying amounts and estimated fair values of assets and liabilities that were not recorded at fair value on the Condensed Consolidated Balance Sheets at December 31, 2017.
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EARNINGS PER SHARE (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the Computation of Basic Earnings Per Share | The following presents the computation of basic earnings per share (in thousands, except per share amounts):
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Summary of the Computation of Diluted Earnings Per Share | The following computation reconciles the differences between the basic and diluted earnings per share presentations (in thousands, except per share amounts):
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SUPPLEMENTAL CASH FLOW INFORMATION (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Supplemental Cash Flow Information | The following table provides supplemental cash flow information:
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SEGMENT REPORTING (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Financial Information by Segment | The following table illustrates summarized financial information concerning our reportable segments.
The following table provides the proportion of gross loans receivable by segment:
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Summary of Long-lived Assets by Geographic Region | The following table illustrates our 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:
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CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Balance Sheet | Condensed Consolidating Balance Sheets
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Condensed Income Statement | Condensed Consolidating Statements of Income
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Condensed Cash Flow Statement | Condensed Consolidating Statements of Cash Flows
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS - Narrative (Details) |
1 Months Ended | |
---|---|---|
Nov. 30, 2017 |
Nov. 30, 2017 |
|
Accounting Policies [Abstract] | ||
Stock split conversion ratio | 36 | 36 |
VARIABLE INTEREST ENTITIES - Carrying Amounts Of Consolidated VIE Assets And Liabilities (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
ASSETS | ||
Restricted cash | $ 12,448 | $ 12,117 |
Loans receivable less allowance for loan losses | 384,873 | 363,269 |
Total Assets | 820,850 | 859,731 |
Liabilities | ||
Accounts payable and accrued liabilities | 53,557 | 55,792 |
Accrued interest | 22,175 | 25,467 |
Long-term debt | 626,833 | 706,225 |
Total Liabilities | 768,001 | 852,595 |
Variable Interest Entity | ||
ASSETS | ||
Restricted cash | 7,274 | 6,871 |
Loans receivable less allowance for loan losses | 171,332 | 167,706 |
Total Assets | 178,606 | 174,577 |
Liabilities | ||
Accounts payable and accrued liabilities | 14 | 12 |
Accrued interest | 1,237 | 1,266 |
Long-term debt | 114,774 | 120,402 |
Total Liabilities | $ 116,025 | $ 121,680 |
LOANS RECEIVABLE AND REVENUE - Revenue by Product (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Revenue from External Customer [Line Items] | ||||
Revenue | $ 248,983 | $ 216,944 | $ 510,741 | $ 441,524 |
Consumer Portfolio Segment | Unsecured Installment | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 123,473 | 105,149 | 256,419 | 214,580 |
Consumer Portfolio Segment | Secured Installment | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 25,777 | 23,173 | 52,633 | 46,842 |
Consumer Portfolio Segment | Open-End | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 27,222 | 15,805 | 54,445 | 33,712 |
Consumer Portfolio Segment | Single-Pay | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 61,602 | 63,241 | 125,307 | 127,031 |
Ancillary | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | $ 10,909 | $ 9,576 | $ 21,937 | $ 19,359 |
LOANS RECEIVABLE AND REVENUE - CSO Guarantee Liability (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Guarantor Obligations [Roll Forward] | ||||
Balance, beginning of period | $ 10,412 | $ 19,783 | $ 17,795 | $ 17,052 |
Charge-offs | (34,010) | (35,680) | (76,948) | (68,311) |
Recoveries | 8,126 | 7,025 | 20,271 | 21,010 |
Net charge-offs | (25,884) | (28,655) | (56,677) | (47,301) |
Provision for losses | 27,091 | 24,454 | 50,501 | 45,831 |
Balance, end of period | 11,619 | 15,582 | 11,619 | 15,582 |
Consumer Portfolio Segment | Single-Pay | ||||
Guarantor Obligations [Roll Forward] | ||||
Balance, beginning of period | 14 | 274 | ||
Charge-offs | (373) | (1,886) | ||
Recoveries | 354 | 1,102 | ||
Net charge-offs | (19) | (784) | ||
Provision for losses | 5 | 510 | ||
Balance, end of period | 0 | 0 | ||
Consumer Portfolio Segment | Unsecured Installment | ||||
Guarantor Obligations [Roll Forward] | ||||
Balance, beginning of period | 9,886 | 18,482 | 17,073 | 15,630 |
Charge-offs | (33,017) | (33,166) | (74,736) | (61,122) |
Recoveries | 7,350 | 5,857 | 18,326 | 16,725 |
Net charge-offs | (25,667) | (27,309) | (56,410) | (44,397) |
Provision for losses | 26,974 | 23,575 | 50,530 | 43,515 |
Balance, end of period | 11,193 | 14,748 | 11,193 | 14,748 |
Consumer Portfolio Segment | Secured Installment | ||||
Guarantor Obligations [Roll Forward] | ||||
Balance, beginning of period | 526 | 1,287 | 722 | 1,148 |
Charge-offs | (993) | (2,141) | (2,212) | (5,303) |
Recoveries | 776 | 814 | 1,945 | 3,183 |
Net charge-offs | (217) | (1,327) | (267) | (2,120) |
Provision for losses | 117 | 874 | (29) | 1,806 |
Balance, end of period | $ 426 | $ 834 | $ 426 | $ 834 |
CREDIT SERVICES ORGANIZATION (Details) - USD ($) $ in Thousands |
6 Months Ended | |||||
---|---|---|---|---|---|---|
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
|
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Credit services organization, fees receivable | $ 11,400 | $ 14,500 | ||||
Guarantor obligations, maximum exposure, undiscounted | 58,700 | 65,200 | ||||
Credit services organization guarantee liability | 11,619 | $ 10,412 | 17,795 | $ 15,582 | $ 19,783 | $ 17,052 |
Amounts placed in collateral accounts | $ 15,200 | $ 17,900 | ||||
Minimum | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
CSO program loan terms | 3 months | |||||
Maximum | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
CSO program loan terms | 18 months |
LONG-TERM DEBT - Schedule Of Long Term Debt (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Mar. 07, 2018 |
Dec. 31, 2017 |
---|---|---|---|
Debt Instrument [Line Items] | |||
Long-term debt | $ 626,833 | $ 706,225 | |
Senior Notes | 2017 Senior Secured Notes (due 2022) | |||
Debt Instrument [Line Items] | |||
Long-term debt | 512,136 | $ 527,500 | 585,823 |
Line of Credit and Secured Debt | Non-Recourse U.S. SPV Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt | 114,697 | 120,402 | |
Line of Credit | Revolving Credit Facility | Senior Revolver | |||
Debt Instrument [Line Items] | |||
Long-term debt | 0 | 0 | |
Line of Credit | Revolving Credit Facility | Cash Money Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 0 | $ 0 |
LONG-TERM DEBT - Senior Secured Notes (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 05, 2018 |
Mar. 07, 2018 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
May 02, 2018 |
Feb. 05, 2018 |
Dec. 31, 2017 |
Nov. 30, 2017 |
Feb. 28, 2017 |
|
Line of Credit Facility [Line Items] | |||||||||||
Loss on extinguishment of debt | $ 0 | $ 0 | $ 11,683,000 | $ 12,458,000 | |||||||
Long-term debt | $ 626,833,000 | $ 626,833,000 | $ 706,225,000 | ||||||||
Senior Notes | 12% Senior Secured Notes | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Debt instrument, face amount | $ 135,000,000 | $ 470,000,000 | |||||||||
Stated interest rate (as percent) | 12.00% | 12.00% | |||||||||
Loss on extinguishment of debt | $ 11,700,000 | $ 12,500,000 | |||||||||
Debt issuance costs capitalized | 18,300,000 | ||||||||||
Notice of redemption, amount | $ 37,700,000 | $ 77,500,000 | |||||||||
Redemption price, percentage of redemption amount (as percent) | 112.00% | ||||||||||
Long-term debt | $ 527,500,000 | $ 512,136,000 | $ 512,136,000 | $ 585,823,000 | |||||||
Redemption price, percentage of excess cash flow (as percent) | 50.00% | 50.00% | |||||||||
Redemption period | 125 days | ||||||||||
Excess cash flow requirement, amount | $ 5,000,000 | ||||||||||
Excess cash flow, amount | $ 0 |
LONG-TERM DEBT - Non-Recourse U.S. SPV Facility (Details) - Non-Recourse U.S. SPV Facility |
1 Months Ended |
---|---|
Nov. 30, 2016
USD ($)
| |
Line of Credit and Secured Debt | |
Debt Instrument [Line Items] | |
Debt instrument, term | 5 years |
Secured Debt | |
Debt Instrument [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 80,000,000 |
Line of Credit | Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 70,000,000 |
LONG-TERM DEBT - Senior Revolver (Details) - Line of Credit - Senior Revolver - USD ($) |
1 Months Ended | |
---|---|---|
Feb. 28, 2018 |
Sep. 30, 2017 |
|
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 29,000,000 | $ 25,000,000 |
Letter of Credit | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 5,000,000 | |
Debt instrument, term | 1 year |
LONG-TERM DEBT - Cash Money Revolving Credit Facility (Details) - Line of Credit - Cash Money Revolving Credit Facility - CAD ($) |
1 Months Ended | 6 Months Ended | |
---|---|---|---|
Dec. 31, 2017 |
Jun. 30, 2018 |
Jul. 31, 2018 |
|
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 7,300,000.0 | ||
Revolving Credit Facility | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 10,000,000.0 | ||
Revolving Credit Facility | Prime Rate | |||
Debt Instrument [Line Items] | |||
Basis spread (as percent) | 1.95% | ||
Standby Letters of Credit | |||
Debt Instrument [Line Items] | |||
Reduction in borrowing capacity | $ 300,000 |
SHARE-BASED COMPENSATION - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Nov. 08, 2017 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 2.2 | $ 0.1 | $ 4.0 | $ 0.2 | |
Unrecognized compensation costs | $ 18.4 | $ 18.4 | |||
Compensation cost not yet recognized, period for recognition | 2 years 4 months 24 days | ||||
2017 Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | 5,000,000 |
SHARE-BASED COMPENSATION - Summary of Restricted Stock Units (Details) - Restricted Stock |
6 Months Ended |
---|---|
Jun. 30, 2018
$ / shares
shares
| |
Units | |
Outstanding, beginning of period (in shares) | shares | 1,516,241 |
Granted (in shares) | shares | 90,372 |
Vested (in shares) | shares | (49,994) |
Forfeited (in shares) | shares | 0 |
Outstanding, end of period (in shares) | shares | 1,556,619 |
Weighted Average Grant Date Fair Value | |
Weighted average grant date fair value, beginning of period (USD per share) | $ / shares | $ 14.00 |
Weighted average grant date fair value, granted (USD per share) | $ / shares | 17.46 |
Weighted average grant date fair value, vested (USD per share) | $ / shares | 14.20 |
Weighted average grant date fair value, forfeited (USD per share) | $ / shares | 0.00 |
Weighted average grant date fair value, end of period (USD per share) | $ / shares | $ 14.19 |
STOCKHOLDERS' EQUITY (Details) - Over-Allotment Option $ in Millions |
Jan. 05, 2018
USD ($)
shares
|
---|---|
Subsidiary, Sale of Stock [Line Items] | |
Number of shares issued via sale of stock (in shares) | shares | 1,000,000 |
Proceeds received for the sale of stock | $ | $ 13.1 |
EARNINGS PER SHARE - Summary of Basic Earnings Per Share (Details) $ / shares in Units, shares in Thousands, $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|---|
Nov. 30, 2017 |
Nov. 30, 2017 |
Jun. 30, 2018
USD ($)
$ / shares
shares
|
Jun. 30, 2017
USD ($)
$ / shares
shares
|
Jun. 30, 2018
USD ($)
$ / shares
shares
|
Jun. 30, 2017
USD ($)
$ / shares
shares
|
|
Earnings Per Share [Abstract] | ||||||
Net income | $ | $ 15,975 | $ 16,342 | $ 39,267 | $ 32,980 | ||
Weight average common shares - basic (in shares) | shares | 45,650 | 37,895 | 45,578 | 37,895 | ||
Basic earnings per share (in dollars per share) | $ / shares | $ 0.35 | $ 0.43 | $ 0.86 | $ 0.87 | ||
Stock split conversion ratio | 36 | 36 |
EARNINGS PER SHARE - Summary of Diluted Earnings Per Share (Details) $ / shares in Units, shares in Thousands, $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|---|
Nov. 30, 2017 |
Nov. 30, 2017 |
Jun. 30, 2018
USD ($)
$ / shares
shares
|
Jun. 30, 2017
USD ($)
$ / shares
shares
|
Jun. 30, 2018
USD ($)
$ / shares
shares
|
Jun. 30, 2017
USD ($)
$ / shares
shares
|
|
Earnings Per Share [Abstract] | ||||||
Net income | $ | $ 15,975 | $ 16,342 | $ 39,267 | $ 32,980 | ||
Weight average common shares - basic (in shares) | 45,650 | 37,895 | 45,578 | 37,895 | ||
Dilutive effect of stock options and restricted stock units (in shares) | 2,346 | 1,092 | 2,179 | 1,088 | ||
Weighted average common shares - diluted (in shares) | 47,996 | 38,987 | 47,757 | 38,983 | ||
Diluted earnings per share (in dollars per share) | $ / shares | $ 0.33 | $ 0.42 | $ 0.82 | $ 0.85 | ||
Stock split conversion ratio | 36 | 36 |
EARNINGS PER SHARE - Narrative (Details) - shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 | 0 | 0 |
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Cash paid for: | ||
Interest | $ 44,250 | $ 25,788 |
Income taxes | 11,621 | 14,594 |
Non-cash investing activities: | ||
Property and equipment accrued in accounts payable | $ 595 | $ 40 |
SEGMENT REPORTING - Narrative (Details) |
6 Months Ended |
---|---|
Jun. 30, 2018
segment
| |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Number of reportable segments | 3 |
SEGMENT REPORTING - Summary of Long-lived Assets by Geographical Region (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net long-lived assets | $ 80,420 | $ 87,086 |
U.S. | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net long-lived assets | 49,087 | 52,627 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net long-lived assets | 29,957 | 32,924 |
U.K. | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net long-lived assets | $ 1,376 | $ 1,535 |
CONTINGENT LIABILITIES (Details) claim in Thousands, $ in Millions |
1 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2010
plaintiff
|
Dec. 31, 2017
USD ($)
|
Jun. 07, 2017
USD ($)
|
Jun. 06, 2017
claim
|
|
Reimbursement Offer | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency accrual | $ 1.8 | |||
Harrison, et al v. Principal Investments, Inc. et al | ||||
Loss Contingencies [Line Items] | ||||
Number of claims filed by the company (more than) | claim | 16 | |||
Harrison, et al v. Principal Investments, Inc. et al | Pending Litigation | ||||
Loss Contingencies [Line Items] | ||||
Number of plaintiffs | plaintiff | 4 | |||
Loss contingency accrual | $ 2.3 |
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