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Share Name | Share Symbol | Market | Type |
---|---|---|---|
CURO Group Holdings Corp | NYSE:CURO | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.095 | 0 | 01:00:00 |
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)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common stock, $0.001 par value per share
|
CURO
|
New York Stock Exchange
|
Large accelerated filer
|
☐
|
|
Accelerated filer
|
☒
|
Non-accelerated filer
|
☐
|
|
|
|
Smaller reporting company
|
☒
|
|
Emerging growth company
|
☐
|
|
|
|
|
|
|
|
Page
|
|
|
||||||
Item 1.
|
Financial Statements (unaudited)
|
||||||
|
|
||||||
|
September 30, 2019 and December 31, 2018
|
||||||
|
|
||||||
|
Three and nine months ended September 30, 2019 and 2018
|
||||||
|
|
||||||
|
Three and nine months ended September 30, 2019 and 2018
|
||||||
|
|
||||||
|
Nine months ended September 30, 2019 and 2018
|
||||||
|
|||||||
Item 2.
|
|||||||
Item 3.
|
|||||||
Item 4.
|
|||||||
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|||||
Item 1.
|
|||||||
Item 1A.
|
|||||||
Item 2.
|
|||||||
Item 3.
|
|||||||
Item 4.
|
|||||||
Item 5.
|
|||||||
Item 6.
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2019
|
|
December 31,
2018 |
||||
|
(unaudited)
|
|
|||||
ASSETS
|
|||||||
Cash
|
$
|
62,207
|
|
|
$
|
61,175
|
|
Restricted cash (includes restricted cash of consolidated VIEs of $21,897 and $12,840 as of September 30, 2019 and December 31, 2018, respectively)
|
38,754
|
|
|
25,439
|
|
||
Gross loans receivable (includes loans of consolidated VIEs of $231,533 and $148,876 as of September 30, 2019 and December 31, 2018, respectively)
|
657,615
|
|
|
571,531
|
|
||
Less: allowance for loan losses (includes allowance for losses of consolidated VIEs of $25,375 and $12,688 as of September 30, 2019 and December 31, 2018, respectively)
|
(108,385
|
)
|
|
(73,997
|
)
|
||
Loans receivable, net
|
549,230
|
|
|
497,534
|
|
||
Right of use asset - operating leases (Note 1)
|
118,260
|
|
|
—
|
|
||
Deferred income taxes
|
1,846
|
|
|
1,534
|
|
||
Income taxes receivable
|
23,966
|
|
|
16,741
|
|
||
Prepaid expenses and other
|
32,228
|
|
|
43,588
|
|
||
Property and equipment, net
|
70,381
|
|
|
76,750
|
|
||
Goodwill
|
120,110
|
|
|
119,281
|
|
||
Other intangibles, net of accumulated amortization
|
32,666
|
|
|
29,784
|
|
||
Other
|
18,484
|
|
|
12,930
|
|
||
Assets from discontinued operations (Note 15)
|
—
|
|
|
34,861
|
|
||
Total Assets
|
$
|
1,068,132
|
|
|
$
|
919,617
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|||||||
Accounts payable and accrued liabilities (includes accounts payable and accrued liabilities of consolidated VIEs of $7,259 and $4,980 as of September 30, 2019 and December 31, 2018, respectively)
|
$
|
63,685
|
|
|
$
|
49,146
|
|
Deferred revenue
|
9,052
|
|
|
9,483
|
|
||
Lease liability - operating leases (Note 1)
|
126,048
|
|
|
—
|
|
||
Income taxes payable
|
—
|
|
|
1,579
|
|
||
Accrued interest (includes accrued interest of consolidated VIEs of $777 and $831 as of September 30, 2019 and December 31, 2018, respectively)
|
5,625
|
|
|
20,904
|
|
||
Liability for losses on CSO lender-owned consumer loans
|
10,249
|
|
|
12,007
|
|
||
Deferred rent
|
—
|
|
|
10,851
|
|
||
Debt (includes debt and issuance costs of consolidated VIEs of $105,742 and $3,259 as of September 30, 2019 and $111,335 and $3,856 as of December 31, 2018, respectively)
|
805,407
|
|
|
804,140
|
|
||
Subordinated stockholder debt
|
—
|
|
|
2,196
|
|
||
Other long-term liabilities
|
8,594
|
|
|
5,800
|
|
||
Deferred tax liabilities
|
4,427
|
|
|
13,730
|
|
||
Liabilities from discontinued operations (Note 15)
|
—
|
|
|
8,882
|
|
||
Total Liabilities
|
1,033,087
|
|
|
938,718
|
|
||
Commitments and contingencies (Note 13)
|
|
|
|
|
|
||
Stockholders' Equity
|
|
|
|
|
|
||
Preferred stock - $0.001 par value, 25,000,000 shares authorized; no shares were issued at either period end
|
—
|
|
|
—
|
|
||
Common stock - $0.001 par value; 225,000,000 shares authorized; 46,503,406 and 46,412,231 shares issued as of September 30, 2019 and December 31, 2018, respectively; and 42,347,165 and 46,412,231 shares outstanding as of September 30, 2019 and December 31, 2018, respectively
|
9
|
|
|
9
|
|
||
Treasury stock, at cost - 4,156,241 as of September 30, 2019
|
(53,064
|
)
|
|
—
|
|
||
Paid-in capital
|
67,579
|
|
|
60,015
|
|
||
Retained earnings (accumulated deficit)
|
63,205
|
|
|
(18,065
|
)
|
||
Accumulated other comprehensive loss
|
(42,684
|
)
|
|
(61,060
|
)
|
||
Total Stockholders' Equity
|
35,045
|
|
|
(19,101
|
)
|
||
Total Liabilities and Stockholders' Equity
|
$
|
1,068,132
|
|
|
$
|
919,617
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Revenue
|
$
|
297,264
|
|
|
$
|
269,482
|
|
|
$
|
839,503
|
|
|
$
|
757,494
|
|
Provision for losses
|
123,867
|
|
|
127,692
|
|
|
338,262
|
|
|
290,922
|
|
||||
Net revenue
|
173,397
|
|
|
141,790
|
|
|
501,241
|
|
|
466,572
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Cost of providing services
|
|
|
|
|
|
|
|
||||||||
Salaries and benefits
|
27,462
|
|
|
26,515
|
|
|
82,249
|
|
|
80,341
|
|
||||
Occupancy
|
14,036
|
|
|
13,522
|
|
|
42,205
|
|
|
40,269
|
|
||||
Office
|
5,993
|
|
|
7,326
|
|
|
16,563
|
|
|
19,311
|
|
||||
Other costs of providing services
|
12,843
|
|
|
12,484
|
|
|
39,917
|
|
|
38,516
|
|
||||
Advertising
|
16,424
|
|
|
21,349
|
|
|
36,990
|
|
|
44,347
|
|
||||
Total cost of providing services
|
76,758
|
|
|
81,196
|
|
|
217,924
|
|
|
222,784
|
|
||||
Gross margin
|
96,639
|
|
|
60,594
|
|
|
283,317
|
|
|
243,788
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating expense
|
|
|
|
|
|
|
|
||||||||
Corporate, district and other expenses
|
38,665
|
|
|
27,495
|
|
|
123,043
|
|
|
95,904
|
|
||||
Interest expense
|
17,364
|
|
|
23,403
|
|
|
52,077
|
|
|
66,229
|
|
||||
Loss on extinguishment of debt
|
—
|
|
|
69,200
|
|
|
—
|
|
|
80,883
|
|
||||
Loss from equity method investment
|
1,384
|
|
|
—
|
|
|
5,132
|
|
|
—
|
|
||||
Total operating expense
|
57,413
|
|
|
120,098
|
|
|
180,252
|
|
|
243,016
|
|
||||
Income (loss) from continuing operations before income taxes
|
39,226
|
|
|
(59,504
|
)
|
|
103,065
|
|
|
772
|
|
||||
Provision (benefit) for income taxes
|
11,239
|
|
|
(16,914
|
)
|
|
28,738
|
|
|
(269
|
)
|
||||
Net income (loss) from continuing operations
|
27,987
|
|
|
(42,590
|
)
|
|
74,327
|
|
|
1,041
|
|
||||
Net loss from discontinued operations, before income tax
|
—
|
|
|
(4,293
|
)
|
|
(39,048
|
)
|
|
(8,518
|
)
|
||||
Income tax expense (benefit) related to disposition
|
$
|
598
|
|
|
$
|
139
|
|
|
$
|
(45,991
|
)
|
|
$
|
278
|
|
Net (loss) income from discontinued operations
|
$
|
(598
|
)
|
|
$
|
(4,432
|
)
|
|
$
|
6,943
|
|
|
$
|
(8,796
|
)
|
Net income (loss)
|
$
|
27,389
|
|
|
$
|
(47,022
|
)
|
|
$
|
81,270
|
|
|
$
|
(7,755
|
)
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings (loss) per share:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
0.63
|
|
|
$
|
(0.93
|
)
|
|
$
|
1.63
|
|
|
$
|
0.02
|
|
Discontinued operations
|
(0.01
|
)
|
|
(0.10
|
)
|
|
0.15
|
|
|
(0.19
|
)
|
||||
Basic earnings per share
|
$
|
0.62
|
|
|
$
|
(1.03
|
)
|
|
$
|
1.78
|
|
|
$
|
(0.17
|
)
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings (loss) per share:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
0.61
|
|
|
$
|
(0.93
|
)
|
|
$
|
1.59
|
|
|
$
|
0.03
|
|
Discontinued operations
|
(0.01
|
)
|
|
(0.10
|
)
|
|
0.15
|
|
|
(0.19
|
)
|
||||
Diluted earnings per share (1)
|
$
|
0.60
|
|
|
$
|
(1.03
|
)
|
|
$
|
1.74
|
|
|
$
|
(0.16
|
)
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
44,422
|
|
|
45,853
|
|
|
45,759
|
|
|
45,674
|
|
||||
Diluted (1)
|
46,010
|
|
|
45,853
|
|
|
46,887
|
|
|
48,061
|
|
||||
(1) As of December 31, 2018, the Company made certain insignificant adjustments to previously-reported Earnings Per Share ("EPS") to correctly reflect the effect of anti-dilutive shares on diluted EPS calculations in accordance with ASC 260. These changes were immaterial to the overall EPS calculation. Diluted loss per share for the three months ended September 30, 2018 of $0.97 was corrected to $1.03.
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income (loss)
|
$
|
27,389
|
|
|
$
|
(47,022
|
)
|
|
$
|
81,270
|
|
|
$
|
(7,755
|
)
|
Other comprehensive (loss) income:
|
|
|
|
|
|
|
|
||||||||
Cash flow hedges, net of $0 tax in both periods
|
—
|
|
|
(187
|
)
|
|
—
|
|
|
(572
|
)
|
||||
Foreign currency translation adjustment, net of $0 tax in both periods
|
(1,954
|
)
|
|
2,649
|
|
|
18,376
|
|
|
(7,015
|
)
|
||||
Other comprehensive (loss) income
|
(1,954
|
)
|
|
2,462
|
|
|
18,376
|
|
|
(7,587
|
)
|
||||
Comprehensive income (loss)
|
$
|
25,435
|
|
|
$
|
(44,560
|
)
|
|
$
|
99,646
|
|
|
$
|
(15,342
|
)
|
|
Nine Months Ended September 30,
|
||||||
|
2019
|
|
2018
|
||||
Cash flows from operating activities
|
|
|
|
||||
Net income from continuing operations
|
$
|
74,327
|
|
|
$
|
1,041
|
|
Adjustments to reconcile net income to net cash provided by continuing operating activities:
|
|
|
|
||||
Depreciation and amortization
|
14,180
|
|
|
13,628
|
|
||
Provision for loan losses
|
338,262
|
|
|
290,922
|
|
||
Amortization of debt issuance costs and bond discount
|
2,273
|
|
|
2,923
|
|
||
Deferred income tax (benefit) expense
|
(3,147
|
)
|
|
3,005
|
|
||
Loss on disposal of property and equipment
|
47
|
|
|
640
|
|
||
Loss on extinguishment of debt
|
—
|
|
|
80,883
|
|
||
Loss from equity method investment
|
5,132
|
|
|
—
|
|
||
Share-based compensation
|
7,587
|
|
|
6,112
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Accrued interest on loans receivable
|
(11,446
|
)
|
|
(5,986
|
)
|
||
Prepaid expenses and other assets
|
14,275
|
|
|
2,695
|
|
||
Other assets
|
(8,439
|
)
|
|
(2,458
|
)
|
||
Accounts payable and accrued liabilities
|
13,596
|
|
|
(4,862
|
)
|
||
Deferred revenue
|
(533
|
)
|
|
(1,984
|
)
|
||
Income taxes payable
|
25,117
|
|
|
326
|
|
||
Income taxes receivable
|
5,598
|
|
|
(12,908
|
)
|
||
Accrued interest
|
(15,303
|
)
|
|
(18,060
|
)
|
||
Other liabilities
|
2,767
|
|
|
1,162
|
|
||
Net cash provided by continuing operating activities
|
464,293
|
|
|
357,079
|
|
||
Net cash (used in) provided by discontinued operating activities
|
(504
|
)
|
|
5,562
|
|
||
Net cash provided by operating activities
|
463,789
|
|
|
362,641
|
|
||
Cash flows from investing activities
|
|
|
|
||||
Purchase of property, equipment and software
|
(8,667
|
)
|
|
(8,030
|
)
|
||
Loans receivable originated or acquired
|
(1,369,644
|
)
|
|
(1,624,881
|
)
|
||
Loans receivable repaid
|
995,291
|
|
|
1,212,446
|
|
||
Investments in Cognical Holdings, Inc. ("Zibby")
|
(8,168
|
)
|
|
(958
|
)
|
||
Net cash used in continuing investing activities
|
(391,188
|
)
|
|
(421,423
|
)
|
||
Net cash used in discontinued investing activities
|
(14,213
|
)
|
|
(24,481
|
)
|
||
Net cash used in investing activities
|
(405,401
|
)
|
|
(445,904
|
)
|
||
Cash flows from financing activities
|
|
|
|
||||
Net proceeds from issuance of common stock
|
—
|
|
|
11,549
|
|
||
Proceeds from Non-Recourse U.S. SPV facility
|
—
|
|
|
17,000
|
|
||
Payments on Non-Recourse U.S. SPV facility
|
—
|
|
|
(61,590
|
)
|
||
Proceeds from Non-Recourse Canada SPV facility
|
15,992
|
|
|
89,949
|
|
||
Payments on Non-Recourse Canada SPV facility
|
(24,835
|
)
|
|
—
|
|
||
Payments on 12.00% Senior Secured Notes
|
—
|
|
|
(605,000
|
)
|
||
Proceeds from 8.25% Senior Secured Notes
|
—
|
|
|
690,000
|
|
||
Debt issuance costs paid
|
(198
|
)
|
|
(17,517
|
)
|
||
Proceeds from credit facilities
|
179,811
|
|
|
65,169
|
|
||
Payments on credit facilities
|
(174,811
|
)
|
|
(36,169
|
)
|
||
Payments on subordinated stockholder debt
|
(2,252
|
)
|
|
—
|
|
||
Payments of call premiums from early debt extinguishments
|
—
|
|
|
(63,350
|
)
|
||
Proceeds from exercise of stock options
|
87
|
|
|
408
|
|
||
Payments to net share settle restricted stock units vesting
|
(110
|
)
|
|
—
|
|
||
Repurchase of common stock
|
(52,172
|
)
|
|
—
|
|
Net cash (used in) provided by financing activities (1)
|
(58,488
|
)
|
|
90,449
|
|
||
Effect of exchange rate changes on cash and restricted cash
|
1,204
|
|
|
(4,080
|
)
|
||
Net increase in cash and restricted cash
|
1,104
|
|
|
3,106
|
|
||
Cash and restricted cash at beginning of period
|
99,857
|
|
|
174,491
|
|
||
Cash and restricted cash at end of period
|
100,961
|
|
|
177,597
|
|
||
Less: Cash and restricted cash of discontinued operations at end of period
|
—
|
|
|
11,303
|
|
||
Cash and restricted cash of continuing operations at end of period
|
$
|
100,961
|
|
|
$
|
166,294
|
|
(1) Financing activities include continuing operations only, and were not impacted by discontinued operations
|
•
|
Gross combined loans receivable: balances as of September 30, 2019 include $46.1 million of Open-End loans that are up to 90 days past-due with related accrued interest, while such balances for periods prior to March 31, 2019 do not include any past-due loans.
|
•
|
Revenues: for the three and nine months ended September 30, 2019, gross revenues include interest earned on past-due loan balances of approximately $15 million and $35 million, respectively, while revenues in prior-year periods do not include comparable amounts.
|
•
|
Provision for Losses: prospectively, from January 1, 2019, past-due, unpaid balances plus related accrued interest charge-off on day 91. Provision expense is affected by total charge-offs less total recoveries ("NCOs") plus changes to the Allowance for loan losses. Because NCOs prospectively include unpaid principal and up to 90 days of related accrued interest, NCO amounts and rates are higher and the Open-End Allowance for loan losses as a percentage of Open-End gross loans receivable is higher. The Open-End Allowance for loan losses as a percentage of Open-End gross loans receivable increased to 17.2% at September 30, 2019, compared to 9.8% in the comparable prior-year period.
|
|
|
Nine Months Ended September 30, 2018
|
||
As Reported:(1)
|
|
|
||
Net cash used in continuing operating activities
|
|
$
|
(55,356
|
)
|
Net cash used in continuing investing activities
|
|
(8,988
|
)
|
|
|
|
|
||
As Corrected:
|
|
|
||
Net cash provided by continuing operating activities
|
|
357,079
|
|
|
Net cash used in continuing investing activities
|
|
(421,423
|
)
|
|
(1) "As reported" balances include amounts from continuing operations historically presented within these captions.
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
Assets
|
|
|
|
|
||||
Restricted cash
|
|
$
|
21,897
|
|
|
$
|
12,840
|
|
Gross loans receivable less allowance for loan losses
|
|
206,158
|
|
|
136,187
|
|
||
Total Assets
|
|
$
|
228,055
|
|
|
$
|
149,027
|
|
Liabilities
|
|
|
|
|
||||
Accounts payable and accrued liabilities
|
|
$
|
7,259
|
|
|
$
|
4,980
|
|
Deferred revenue
|
|
44
|
|
|
40
|
|
||
Accrued interest
|
|
777
|
|
|
831
|
|
||
Intercompany payable
|
|
93,671
|
|
|
44,330
|
|
||
Long-term debt
|
|
102,483
|
|
|
107,479
|
|
||
Total Liabilities
|
|
$
|
204,234
|
|
|
$
|
157,660
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Unsecured Installment
|
|
$
|
137,233
|
|
|
$
|
137,660
|
|
|
$
|
395,119
|
|
|
$
|
377,976
|
|
Secured Installment
|
|
28,270
|
|
|
28,562
|
|
|
81,823
|
|
|
81,195
|
|
||||
Open-End
|
|
66,120
|
|
|
40,290
|
|
|
173,961
|
|
|
94,735
|
|
||||
Single-Pay
|
|
49,312
|
|
|
50,614
|
|
|
141,605
|
|
|
169,296
|
|
||||
Ancillary
|
|
16,329
|
|
|
12,356
|
|
|
46,995
|
|
|
34,292
|
|
||||
Total revenue
|
|
$
|
297,264
|
|
|
$
|
269,482
|
|
|
$
|
839,503
|
|
|
$
|
757,494
|
|
|
|
September 30, 2019
|
||||||||||||||
|
|
Single-Pay
|
Unsecured Installment
|
Secured Installment
|
Open-End
|
Total
|
||||||||||
Current loans receivable
|
|
$
|
78,039
|
|
$
|
127,952
|
|
$
|
72,866
|
|
$
|
268,918
|
|
$
|
547,775
|
|
Delinquent loans receivable
|
|
—
|
|
46,537
|
|
17,250
|
|
46,053
|
|
109,840
|
|
|||||
Total loans receivable
|
|
78,039
|
|
174,489
|
|
90,116
|
|
314,971
|
|
657,615
|
|
|||||
Less: allowance for losses
|
|
(5,662
|
)
|
(38,127
|
)
|
(10,363
|
)
|
(54,233
|
)
|
(108,385
|
)
|
|||||
Loans receivable, net
|
|
$
|
72,377
|
|
$
|
136,362
|
|
$
|
79,753
|
|
$
|
260,738
|
|
$
|
549,230
|
|
|
|
September 30, 2019
|
|||||||||||
|
|
Unsecured Installment
|
Secured Installment
|
Open-End
|
Total
|
||||||||
Delinquent loans receivable
|
|
|
|
|
|
||||||||
0-30 days past due
|
|
$
|
17,187
|
|
$
|
7,456
|
|
$
|
18,734
|
|
$
|
43,377
|
|
31-60 days past due
|
|
13,890
|
|
4,711
|
|
13,283
|
|
31,884
|
|
||||
61 + days past due
|
|
15,460
|
|
5,083
|
|
14,036
|
|
34,579
|
|
||||
Total delinquent loans receivable
|
|
$
|
46,537
|
|
$
|
17,250
|
|
$
|
46,053
|
|
$
|
109,840
|
|
|
|
December 31, 2018
|
||||||||||||||
|
|
Single-Pay
|
Unsecured Installment
|
Secured Installment
|
Open-End
|
Total
|
||||||||||
Current loans receivable
|
|
$
|
80,823
|
|
$
|
141,316
|
|
$
|
75,583
|
|
$
|
207,333
|
|
$
|
505,055
|
|
Delinquent loans receivable
|
|
—
|
|
49,087
|
|
17,389
|
|
—
|
|
66,476
|
|
|||||
Total loans receivable
|
|
80,823
|
|
190,403
|
|
92,972
|
|
207,333
|
|
571,531
|
|
|||||
Less: allowance for losses
|
|
(4,189
|
)
|
(37,716
|
)
|
(12,191
|
)
|
(19,901
|
)
|
(73,997
|
)
|
|||||
Loans receivable, net
|
|
$
|
76,634
|
|
$
|
152,687
|
|
$
|
80,781
|
|
$
|
187,432
|
|
$
|
497,534
|
|
|
|
December 31, 2018
|
||||||||
|
|
Unsecured Installment
|
Secured Installment
|
Total
|
||||||
Delinquent loans receivable
|
|
|
|
|
|
|||||
0-30 days past due
|
|
$
|
17,850
|
|
$
|
7,870
|
|
$
|
25,720
|
|
31-60 days past due
|
|
14,705
|
|
4,725
|
|
19,430
|
|
|||
61 + days past due
|
|
16,532
|
|
4,794
|
|
21,326
|
|
|||
Total delinquent loans receivable
|
|
$
|
49,087
|
|
$
|
17,389
|
|
$
|
66,476
|
|
|
|
September 30, 2019
|
||||||||
|
|
Unsecured Installment
|
Secured Installment
|
Total
|
||||||
Current loans receivable guaranteed by the Company
|
|
$
|
58,862
|
|
$
|
1,966
|
|
$
|
60,828
|
|
Delinquent loans receivable guaranteed by the Company
|
|
11,842
|
|
396
|
|
12,238
|
|
|||
Total loans receivable guaranteed by the Company
|
|
70,704
|
|
2,362
|
|
73,066
|
|
|||
Less: Liability for losses on CSO lender-owned consumer loans
|
|
(10,181
|
)
|
(68
|
)
|
(10,249
|
)
|
|||
Loans receivable guaranteed by the Company, net
|
|
$
|
60,523
|
|
$
|
2,294
|
|
$
|
62,817
|
|
|
|
September 30, 2019
|
||||||||
|
|
Unsecured Installment
|
Secured Installment
|
Total
|
||||||
Delinquent loans receivable
|
|
|
|
|
|
|||||
0-30 days past due
|
|
$
|
9,859
|
|
$
|
330
|
|
$
|
10,189
|
|
31-60 days past due
|
|
1,229
|
|
41
|
|
1,270
|
|
|||
61+ days past due
|
|
754
|
|
25
|
|
779
|
|
|||
Total delinquent loans receivable
|
|
$
|
11,842
|
|
$
|
396
|
|
$
|
12,238
|
|
|
|
December 31, 2018
|
||||||||
|
|
Unsecured Installment
|
Secured Installment
|
Total
|
||||||
Current loans receivable guaranteed by the Company
|
|
$
|
65,743
|
|
$
|
2,504
|
|
$
|
68,247
|
|
Delinquent loans receivable guaranteed by the Company
|
|
11,708
|
|
446
|
|
12,154
|
|
|||
Total loans receivable guaranteed by the Company
|
|
77,451
|
|
2,950
|
|
80,401
|
|
|||
Less: Liability for losses on CSO lender-owned consumer loans
|
|
(11,582
|
)
|
(425
|
)
|
(12,007
|
)
|
|||
Loans receivable guaranteed by the Company, net
|
|
$
|
65,869
|
|
$
|
2,525
|
|
$
|
68,394
|
|
|
|
December 31, 2018
|
||||||||
|
|
Unsecured Installment
|
Secured Installment
|
Total
|
||||||
Delinquent loans receivable
|
|
|
|
|
||||||
0-30 days past due
|
|
$
|
9,684
|
|
$
|
369
|
|
$
|
10,053
|
|
31-60 days past due
|
|
1,255
|
|
48
|
|
1,303
|
|
|||
61 + days past due
|
|
769
|
|
29
|
|
798
|
|
|||
Total delinquent loans receivable
|
|
$
|
11,708
|
|
$
|
446
|
|
$
|
12,154
|
|
|
Three Months Ended September 30, 2019
|
|||||||||||||||||
|
Single-Pay
|
Unsecured Installment
|
Secured Installment
|
Open-End
|
Other
|
Total
|
||||||||||||
Balance, beginning of period
|
$
|
4,941
|
|
$
|
35,223
|
|
$
|
9,996
|
|
$
|
51,717
|
|
$
|
—
|
|
$
|
101,877
|
|
Charge-offs
|
(40,512
|
)
|
(34,252
|
)
|
(10,592
|
)
|
(31,993
|
)
|
(1,382
|
)
|
(118,731
|
)
|
||||||
Recoveries
|
26,599
|
|
5,279
|
|
2,445
|
|
3,791
|
|
845
|
|
38,959
|
|
||||||
Net charge-offs
|
(13,913
|
)
|
(28,973
|
)
|
(8,147
|
)
|
(28,202
|
)
|
(537
|
)
|
(79,772
|
)
|
||||||
Provision for losses
|
14,736
|
|
31,891
|
|
8,514
|
|
31,220
|
|
537
|
|
86,898
|
|
||||||
Effect of foreign currency translation
|
(102
|
)
|
(14
|
)
|
—
|
|
(502
|
)
|
—
|
|
(618
|
)
|
||||||
Balance, end of period
|
$
|
5,662
|
|
$
|
38,127
|
|
$
|
10,363
|
|
$
|
54,233
|
|
$
|
—
|
|
$
|
108,385
|
|
Allowance for loan losses as a percentage of gross loan receivables
|
7.3
|
%
|
21.9
|
%
|
11.5
|
%
|
17.2
|
%
|
N/A
|
|
16.5
|
%
|
|
Three Months Ended September 30, 2019
|
||||||||
|
Unsecured Installment
|
Secured Installment
|
Total
|
||||||
Balance, beginning of period
|
$
|
9,433
|
|
$
|
71
|
|
$
|
9,504
|
|
Charge-offs
|
(43,072
|
)
|
(888
|
)
|
(43,960
|
)
|
|||
Recoveries
|
7,156
|
|
580
|
|
7,736
|
|
|||
Net charge-offs
|
(35,916
|
)
|
(308
|
)
|
(36,224
|
)
|
|||
Provision for losses
|
36,664
|
|
305
|
|
36,969
|
|
|||
Balance, end of period
|
$
|
10,181
|
|
$
|
68
|
|
$
|
10,249
|
|
|
Three Months Ended September 30, 2019
|
|||||||||||||||||
|
Single-Pay
|
Unsecured Installment
|
Secured Installment
|
Open-End
|
Other
|
Total
|
||||||||||||
Balance, beginning of period
|
$
|
4,941
|
|
$
|
44,656
|
|
$
|
10,067
|
|
$
|
51,717
|
|
$
|
—
|
|
$
|
111,381
|
|
Charge-offs
|
(40,512
|
)
|
(77,324
|
)
|
(11,480
|
)
|
(31,993
|
)
|
(1,382
|
)
|
(162,691
|
)
|
||||||
Recoveries
|
26,599
|
|
12,435
|
|
3,025
|
|
3,791
|
|
845
|
|
46,695
|
|
||||||
Net charge-offs
|
(13,913
|
)
|
(64,889
|
)
|
(8,455
|
)
|
(28,202
|
)
|
(537
|
)
|
(115,996
|
)
|
||||||
Provision for losses
|
14,736
|
|
68,555
|
|
8,819
|
|
31,220
|
|
537
|
|
123,867
|
|
||||||
Effect of foreign currency translation
|
(102
|
)
|
(14
|
)
|
—
|
|
(502
|
)
|
—
|
|
(618
|
)
|
||||||
Balance, end of period
|
$
|
5,662
|
|
$
|
48,308
|
|
$
|
10,431
|
|
$
|
54,233
|
|
$
|
—
|
|
$
|
118,634
|
|
|
Three Months Ended September 30, 2018
|
|||||||||||||||||
|
Single-Pay
|
Unsecured Installment
|
Secured Installment
|
Open-End
|
Other
|
Total
|
||||||||||||
Balance, beginning of period
|
$
|
3,604
|
|
$
|
30,291
|
|
$
|
10,386
|
|
$
|
9,717
|
|
$
|
—
|
|
$
|
53,998
|
|
Charge-offs
|
(40,753
|
)
|
(32,115
|
)
|
(11,188
|
)
|
(32,770
|
)
|
(1,494
|
)
|
(118,320
|
)
|
||||||
Recoveries
|
27,861
|
|
4,807
|
|
2,325
|
|
9,191
|
|
931
|
|
45,115
|
|
||||||
Net charge-offs
|
(12,892
|
)
|
(27,308
|
)
|
(8,863
|
)
|
(23,579
|
)
|
(563
|
)
|
(73,205
|
)
|
||||||
Provision for losses
|
12,757
|
|
32,946
|
|
9,698
|
|
31,686
|
|
563
|
|
87,650
|
|
||||||
Effect of foreign currency translation
|
(179
|
)
|
231
|
|
—
|
|
189
|
|
—
|
|
241
|
|
||||||
Balance, end of period
|
$
|
3,290
|
|
$
|
36,160
|
|
$
|
11,221
|
|
$
|
18,013
|
|
$
|
—
|
|
$
|
68,684
|
|
Allowance for loan losses as a percentage of gross loan receivables
|
4.3
|
%
|
19.5
|
%
|
12.3
|
%
|
9.8
|
%
|
N/A
|
|
12.8
|
%
|
|
Three Months Ended September 30, 2018
|
||||||||
|
Unsecured Installment
|
Secured Installment
|
Total
|
||||||
Balance, beginning of period
|
$
|
11,193
|
|
$
|
426
|
|
$
|
11,619
|
|
Charge-offs
|
(44,896
|
)
|
(1,088
|
)
|
(45,984
|
)
|
|||
Recoveries
|
6,901
|
|
665
|
|
7,566
|
|
|||
Net charge-offs
|
(37,995
|
)
|
(423
|
)
|
(38,418
|
)
|
|||
Provision for losses
|
39,552
|
|
490
|
|
40,042
|
|
|||
Balance, end of period
|
$
|
12,750
|
|
$
|
493
|
|
$
|
13,243
|
|
|
Three Months Ended September 30, 2018
|
|||||||||||||||||
|
Single-Pay
|
Unsecured Installment
|
Secured Installment
|
Open-End
|
Other
|
Total
|
||||||||||||
Balance, beginning of period
|
$
|
3,604
|
|
$
|
41,484
|
|
$
|
10,812
|
|
$
|
9,717
|
|
$
|
—
|
|
$
|
65,617
|
|
Charge-offs
|
(40,753
|
)
|
(77,011
|
)
|
(12,276
|
)
|
(32,770
|
)
|
(1,494
|
)
|
(164,304
|
)
|
||||||
Recoveries
|
27,861
|
|
11,708
|
|
2,990
|
|
9,191
|
|
931
|
|
52,681
|
|
||||||
Net charge-offs
|
(12,892
|
)
|
(65,303
|
)
|
(9,286
|
)
|
(23,579
|
)
|
(563
|
)
|
(111,623
|
)
|
||||||
Provision for losses
|
12,757
|
|
72,498
|
|
10,188
|
|
31,686
|
|
563
|
|
127,692
|
|
||||||
Effect of foreign currency translation
|
(179
|
)
|
231
|
|
—
|
|
189
|
|
—
|
|
241
|
|
||||||
Balance, end of period
|
$
|
3,290
|
|
$
|
48,910
|
|
$
|
11,714
|
|
$
|
18,013
|
|
$
|
—
|
|
$
|
81,927
|
|
|
Nine Months Ended September 30, 2019
|
|||||||||||||||||
|
Single-Pay
|
Unsecured Installment
|
Secured Installment
|
Open-End
|
Other
|
Total
|
||||||||||||
Balance, beginning of period
|
$
|
4,189
|
|
$
|
37,716
|
|
$
|
12,191
|
|
$
|
19,901
|
|
$
|
—
|
|
$
|
73,997
|
|
Charge-offs
|
(112,792
|
)
|
(115,825
|
)
|
(33,558
|
)
|
(66,319
|
)
|
(4,075
|
)
|
(332,569
|
)
|
||||||
Recoveries
|
78,811
|
|
16,963
|
|
8,261
|
|
14,487
|
|
2,565
|
|
121,087
|
|
||||||
Net charge-offs
|
(33,981
|
)
|
(98,862
|
)
|
(25,297
|
)
|
(51,832
|
)
|
(1,510
|
)
|
(211,482
|
)
|
||||||
Provision for losses
|
35,450
|
|
99,250
|
|
23,469
|
|
85,910
|
|
1,510
|
|
245,589
|
|
||||||
Effect of foreign currency translation
|
4
|
|
23
|
|
—
|
|
254
|
|
—
|
|
281
|
|
||||||
Balance, end of period
|
$
|
5,662
|
|
$
|
38,127
|
|
$
|
10,363
|
|
$
|
54,233
|
|
$
|
—
|
|
$
|
108,385
|
|
Allowance for loan losses as a percentage of gross loan receivables
|
7.3
|
%
|
21.9
|
%
|
11.5
|
%
|
17.2
|
%
|
N/A
|
|
16.5
|
%
|
|
Nine Months Ended September 30, 2019
|
||||||||
|
Unsecured Installment
|
Secured Installment
|
Total
|
||||||
Balance, beginning of period
|
$
|
11,582
|
|
$
|
425
|
|
$
|
12,007
|
|
Charge-offs
|
(118,617
|
)
|
(2,647
|
)
|
(121,264
|
)
|
|||
Recoveries
|
24,794
|
|
2,039
|
|
26,833
|
|
|||
Net charge-offs
|
(93,823
|
)
|
(608
|
)
|
(94,431
|
)
|
|||
Provision for losses
|
92,422
|
|
251
|
|
92,673
|
|
|||
Balance, end of period
|
$
|
10,181
|
|
$
|
68
|
|
$
|
10,249
|
|
|
Nine Months Ended September 30, 2019
|
|||||||||||||||||
|
Single-Pay
|
Unsecured Installment
|
Secured Installment
|
Open-End
|
Other
|
Total
|
||||||||||||
Balance, beginning of period
|
$
|
4,189
|
|
$
|
49,298
|
|
$
|
12,616
|
|
$
|
19,901
|
|
$
|
—
|
|
$
|
86,004
|
|
Charge-offs
|
(112,792
|
)
|
(234,442
|
)
|
(36,205
|
)
|
(66,319
|
)
|
(4,075
|
)
|
(453,833
|
)
|
||||||
Recoveries
|
78,811
|
|
41,757
|
|
10,300
|
|
14,487
|
|
2,565
|
|
147,920
|
|
||||||
Net charge-offs
|
(33,981
|
)
|
(192,685
|
)
|
(25,905
|
)
|
(51,832
|
)
|
(1,510
|
)
|
(305,913
|
)
|
||||||
Provision for losses
|
35,450
|
|
191,672
|
|
23,720
|
|
85,910
|
|
1,510
|
|
338,262
|
|
||||||
Effect of foreign currency translation
|
4
|
|
23
|
|
—
|
|
254
|
|
—
|
|
281
|
|
||||||
Balance, end of period
|
$
|
5,662
|
|
$
|
48,308
|
|
$
|
10,431
|
|
$
|
54,233
|
|
$
|
—
|
|
$
|
118,634
|
|
|
Nine Months Ended September 30, 2018
|
|||||||||||||||||
|
Single-Pay
|
Unsecured Installment
|
Secured Installment
|
Open-End
|
Other
|
Total
|
||||||||||||
Balance, beginning of period
|
$
|
5,204
|
|
$
|
38,977
|
|
$
|
13,472
|
|
$
|
6,426
|
|
$
|
—
|
|
$
|
64,079
|
|
Charge-offs
|
(126,328
|
)
|
(98,946
|
)
|
(33,755
|
)
|
(76,926
|
)
|
(4,474
|
)
|
(340,429
|
)
|
||||||
Recoveries
|
88,945
|
|
15,110
|
|
7,487
|
|
30,451
|
|
2,728
|
|
144,721
|
|
||||||
Net charge-offs
|
(37,383
|
)
|
(83,836
|
)
|
(26,268
|
)
|
(46,475
|
)
|
(1,746
|
)
|
(195,708
|
)
|
||||||
Provision for losses
|
35,750
|
|
80,904
|
|
24,017
|
|
57,962
|
|
1,746
|
|
200,379
|
|
||||||
Effect of foreign currency translation
|
(281
|
)
|
115
|
|
—
|
|
100
|
|
—
|
|
(66
|
)
|
||||||
Balance, end of period
|
$
|
3,290
|
|
$
|
36,160
|
|
$
|
11,221
|
|
$
|
18,013
|
|
$
|
—
|
|
$
|
68,684
|
|
Allowance for loan losses as a percentage of gross loan receivables
|
4.3
|
%
|
19.5
|
%
|
12.3
|
%
|
9.8
|
%
|
N/A
|
|
12.8
|
%
|
|
Nine Months Ended September 30, 2018
|
||||||||
|
Unsecured Installment
|
Secured Installment
|
Total
|
||||||
Balance, beginning of period
|
$
|
17,073
|
|
$
|
722
|
|
$
|
17,795
|
|
Charge-offs
|
(119,632
|
)
|
(3,300
|
)
|
(122,932
|
)
|
|||
Recoveries
|
25,227
|
|
2,610
|
|
27,837
|
|
|||
Net charge-offs
|
(94,405
|
)
|
(690
|
)
|
(95,095
|
)
|
|||
Provision for losses
|
90,082
|
|
461
|
|
90,543
|
|
|||
Balance, end of period
|
$
|
12,750
|
|
$
|
493
|
|
$
|
13,243
|
|
|
Nine Months Ended September 30, 2018
|
|||||||||||||||||
|
Single-Pay
|
Unsecured Installment
|
Secured Installment
|
Open-End
|
Other
|
Total
|
||||||||||||
Balance, beginning of period
|
$
|
5,204
|
|
$
|
56,050
|
|
$
|
14,194
|
|
$
|
6,426
|
|
$
|
—
|
|
$
|
81,874
|
|
Charge-offs
|
(126,328
|
)
|
(218,578
|
)
|
(37,055
|
)
|
(76,926
|
)
|
(4,474
|
)
|
(463,361
|
)
|
||||||
Recoveries
|
88,945
|
|
40,337
|
|
10,097
|
|
30,451
|
|
2,728
|
|
172,558
|
|
||||||
Net charge-offs
|
(37,383
|
)
|
(178,241
|
)
|
(26,958
|
)
|
(46,475
|
)
|
(1,746
|
)
|
(290,803
|
)
|
||||||
Provision for losses
|
35,750
|
|
170,986
|
|
24,478
|
|
57,962
|
|
1,746
|
|
290,922
|
|
||||||
Effect of foreign currency translation
|
(281
|
)
|
115
|
|
—
|
|
100
|
|
—
|
|
(66
|
)
|
||||||
Balance, end of period
|
$
|
3,290
|
|
$
|
48,910
|
|
$
|
11,714
|
|
$
|
18,013
|
|
$
|
—
|
|
$
|
81,927
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
8.25% Senior Secured Notes (due 2025)
|
|
$
|
677,924
|
|
|
$
|
676,661
|
|
Non-Recourse Canada SPV Facility
|
|
102,483
|
|
|
107,479
|
|
||
Senior Revolver
|
|
25,000
|
|
|
20,000
|
|
||
Debt
|
|
$
|
805,407
|
|
|
$
|
804,140
|
|
|
|
Estimated Fair Value
|
|||||||||||||
|
Carrying Value September 30,
2019 |
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||
Financial assets:
|
|
|
|
|
|
||||||||||
Cash Surrender Value of Life Insurance
|
$
|
5,799
|
|
$
|
5,799
|
|
$
|
—
|
|
$
|
—
|
|
$
|
5,799
|
|
Financial liabilities:
|
|
|
|
|
|
||||||||||
Non-qualified deferred compensation plan
|
$
|
4,333
|
|
$
|
4,333
|
|
$
|
—
|
|
$
|
—
|
|
$
|
4,333
|
|
|
|
Estimated Fair Value
|
|||||||||||||
|
Carrying Value September 30,
2019 |
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||
Financial assets:
|
|
|
|
|
|
||||||||||
Cash
|
$
|
62,207
|
|
$
|
62,207
|
|
$
|
—
|
|
$
|
—
|
|
$
|
62,207
|
|
Restricted cash
|
38,754
|
|
38,754
|
|
—
|
|
—
|
|
38,754
|
|
|||||
Loans receivable, net
|
549,230
|
|
—
|
|
—
|
|
549,230
|
|
549,230
|
|
|||||
Investment in Zibby
|
11,231
|
|
—
|
|
—
|
|
11,231
|
|
11,231
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
||||||||||
Liability for losses on CSO lender-owned consumer loans
|
$
|
10,249
|
|
$
|
—
|
|
$
|
—
|
|
$
|
10,249
|
|
$
|
10,249
|
|
8.25% Senior Secured Notes
|
677,924
|
|
—
|
|
591,489
|
|
—
|
|
591,489
|
|
|||||
Non-Recourse Canada SPV facility
|
102,483
|
|
—
|
|
—
|
|
105,742
|
|
105,742
|
|
|||||
Senior Revolver
|
25,000
|
|
—
|
|
—
|
|
25,000
|
|
25,000
|
|
|
|
Estimated Fair Value
|
|||||||||||||
|
Carrying Value December 31,
2018 |
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||
Financial assets:
|
|
|
|
|
|
||||||||||
Cash
|
$
|
61,175
|
|
$
|
61,175
|
|
$
|
—
|
|
$
|
—
|
|
$
|
61,175
|
|
Restricted cash
|
25,439
|
|
25,439
|
|
—
|
|
—
|
|
25,439
|
|
|||||
Loans receivable, net
|
497,534
|
|
—
|
|
—
|
|
497,534
|
|
497,534
|
|
|||||
Investment in Zibby
|
6,558
|
|
—
|
|
—
|
|
6,558
|
|
6,558
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
||||||||||
Liability for losses on CSO lender-owned consumer loans
|
$
|
12,007
|
|
$
|
—
|
|
$
|
—
|
|
$
|
12,007
|
|
$
|
12,007
|
|
8.25% Senior Secured notes
|
676,661
|
|
—
|
|
531,179
|
|
—
|
|
531,179
|
|
|||||
Non-Recourse Canada SPV facility
|
107,479
|
|
—
|
|
—
|
|
111,335
|
|
111,335
|
|
|||||
Senior Revolver
|
20,000
|
|
—
|
|
—
|
|
20,000
|
|
20,000
|
|
|
Common Stock
|
|
Paid-in capital
|
|
Retained Earnings (Deficit)
|
|
AOCI (1)
|
|
Total Stockholders' Equity
|
|||||||||||||
|
Shares Outstanding
|
|
Par Value
|
|
|
|
|
|||||||||||||||
Balances at December 31, 2017
|
44,561,419
|
|
|
$
|
8
|
|
|
$
|
46,079
|
|
|
$
|
3,988
|
|
|
$
|
(42,939
|
)
|
|
$
|
7,136
|
|
Net income from continuing operations
|
—
|
|
|
—
|
|
|
—
|
|
|
24,913
|
|
|
—
|
|
|
24,913
|
|
|||||
Net loss from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,621
|
)
|
|
—
|
|
|
(1,621
|
)
|
|||||
Foreign currency translation adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,910
|
)
|
|
(2,910
|
)
|
|||||
Cash flow hedge expiration
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54
|
|
|
54
|
|
|||||
Share based compensation expense
|
—
|
|
|
—
|
|
|
1,842
|
|
|
—
|
|
|
—
|
|
|
1,842
|
|
|||||
Initial Public Offering, Net Proceeds (2) (underwriter shares)
|
1,000,000
|
|
|
1
|
|
|
13,135
|
|
|
—
|
|
|
—
|
|
|
13,136
|
|
|||||
Balances at March 31, 2018
|
45,561,419
|
|
|
$
|
9
|
|
|
$
|
61,056
|
|
|
$
|
27,280
|
|
|
$
|
(45,795
|
)
|
|
$
|
42,550
|
|
Net income from continuing operations
|
—
|
|
|
—
|
|
|
—
|
|
|
18,718
|
|
|
—
|
|
|
18,718
|
|
|||||
Net loss from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,743
|
)
|
|
—
|
|
|
(2,743
|
)
|
|||||
Foreign currency translation adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,754
|
)
|
|
(6,754
|
)
|
|||||
Cash flow hedge expiration
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(439
|
)
|
|
(439
|
)
|
|||||
Share based compensation expense
|
—
|
|
|
—
|
|
|
1,478
|
|
|
—
|
|
|
—
|
|
|
1,478
|
|
|||||
Proceeds from exercise of stock options
|
209,132
|
|
|
—
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|||||
Common stock issued for RSU's vesting
|
49,994
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Balances at June 30, 2018
|
45,820,545
|
|
|
$
|
9
|
|
|
$
|
62,573
|
|
|
$
|
43,255
|
|
|
$
|
(52,988
|
)
|
|
$
|
52,849
|
|
Net loss from continuing operations
|
—
|
|
|
—
|
|
|
—
|
|
|
(42,590
|
)
|
|
—
|
|
|
(42,590
|
)
|
|||||
Net loss from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,432
|
)
|
|
—
|
|
|
(4,432
|
)
|
|||||
Foreign currency translation adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,649
|
|
|
2,649
|
|
|||||
Cash flow hedge expiration
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(187
|
)
|
|
(187
|
)
|
|||||
Share based compensation expense
|
—
|
|
|
—
|
|
|
2,792
|
|
|
—
|
|
|
—
|
|
|
2,792
|
|
|||||
Proceeds from exercise of stock options
|
222,432
|
|
|
—
|
|
|
369
|
|
|
—
|
|
|
—
|
|
|
369
|
|
|||||
Initial Public Offering, Net Proceeds (underwriter shares)
|
—
|
|
|
—
|
|
|
(1,586
|
)
|
|
—
|
|
|
—
|
|
|
(1,586
|
)
|
|||||
Balance at September 30, 2018
|
46,042,977
|
|
|
$
|
9
|
|
|
$
|
64,148
|
|
|
$
|
(3,767
|
)
|
|
$
|
(50,526
|
)
|
|
$
|
9,864
|
|
(1) Accumulated other comprehensive income (loss)
|
||||||||||||||||||||||
(2) In connection with the Company's initial public offering in December 2017, the underwriters had a 30-day option to purchase up to an additional 1.0 million shares of the Company's common stock at the initial public offering price, less the underwriting discount for 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 of $13.1 million.
|
|
Common Stock
|
|
Paid-in capital
|
|
Treasury Stock
|
|
Retained Earnings (Deficit)
|
|
AOCI (1)
|
|
Total Stockholders' Equity
|
|||||||||||||||
|
Shares Outstanding
|
|
Par Value
|
|
|
|
|
|
||||||||||||||||||
Balances at December 31, 2018
|
46,412,231
|
|
|
$
|
9
|
|
|
$
|
60,015
|
|
|
$
|
—
|
|
|
$
|
(18,065
|
)
|
|
$
|
(61,060
|
)
|
|
$
|
(19,101
|
)
|
Net income from continuing operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28,673
|
|
|
—
|
|
|
28,673
|
|
||||||
Net income from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,375
|
|
|
—
|
|
|
8,375
|
|
||||||
Foreign currency translation adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,695
|
|
|
16,695
|
|
||||||
Share based compensation expense
|
—
|
|
|
—
|
|
|
2,172
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,172
|
|
||||||
Proceeds from exercise of stock options
|
7,888
|
|
|
—
|
|
|
40
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
40
|
|
||||||
Common stock issued for RSU's vesting, net of shares withheld and withholding paid for employee taxes
|
11,170
|
|
|
—
|
|
|
(110
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(110
|
)
|
||||||
Balances at March 31, 2019
|
46,431,289
|
|
|
$
|
9
|
|
|
$
|
62,117
|
|
|
$
|
—
|
|
|
$
|
18,983
|
|
|
$
|
(44,365
|
)
|
|
$
|
36,744
|
|
Net income from continuing operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,667
|
|
|
—
|
|
|
17,667
|
|
||||||
Net loss from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(834
|
)
|
|
—
|
|
|
(834
|
)
|
||||||
Foreign currency translation adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,635
|
|
|
3,635
|
|
||||||
Share based compensation expense
|
—
|
|
|
—
|
|
|
2,644
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,644
|
|
||||||
Proceeds from exercise of stock options
|
4,908
|
|
|
—
|
|
|
29
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29
|
|
||||||
Repurchase of common stock
|
(244,200
|
)
|
|
—
|
|
|
—
|
|
|
(2,507
|
)
|
|
—
|
|
|
—
|
|
|
(2,507
|
)
|
||||||
Common stock issued for RSU's vesting, net of shares withheld and withholding paid for employee taxes
|
63,285
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Balances at June 30, 2019
|
46,255,282
|
|
|
$
|
9
|
|
|
$
|
64,790
|
|
|
$
|
(2,507
|
)
|
|
$
|
35,816
|
|
|
$
|
(40,730
|
)
|
|
$
|
57,378
|
|
Net income from continuing operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27,987
|
|
|
—
|
|
|
27,987
|
|
||||||
Net loss from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(598
|
)
|
|
—
|
|
|
(598
|
)
|
||||||
Foreign currency translation adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,954
|
)
|
|
(1,954
|
)
|
||||||
Share based compensation expense
|
—
|
|
|
—
|
|
|
2,771
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,771
|
|
||||||
Proceeds from exercise of stock options
|
3,924
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
||||||
Repurchase of common stock (2)
|
(3,912,041
|
)
|
|
—
|
|
|
—
|
|
|
(50,557
|
)
|
|
—
|
|
|
—
|
|
|
(50,557
|
)
|
||||||
Balances at September 30, 2019
|
42,347,165
|
|
|
$
|
9
|
|
|
$
|
67,579
|
|
|
$
|
(53,064
|
)
|
|
$
|
63,205
|
|
|
$
|
(42,684
|
)
|
|
$
|
35,045
|
|
(1) Accumulated other comprehensive income (loss)
|
||||||||||||||||||||||||||
(2) Includes the repurchase of 2,000,000 shares of common stock from FFL for $13.55 per share. See Note 17 - "Share Repurchase Program" for additional information.
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2019
|
|
2018(1)
|
|
2019
|
|
2018
|
||||||||
Net income (loss) from continuing operations
|
$
|
27,987
|
|
|
$
|
(42,590
|
)
|
|
$
|
74,327
|
|
|
$
|
1,041
|
|
Net (loss) income from discontinued operations, net of tax
|
(598
|
)
|
|
(4,432
|
)
|
|
$
|
6,943
|
|
|
$
|
(8,796
|
)
|
||
Net income (loss)
|
$
|
27,389
|
|
|
$
|
(47,022
|
)
|
|
$
|
81,270
|
|
|
$
|
(7,755
|
)
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares - basic
|
44,422
|
|
|
45,853
|
|
|
45,759
|
|
|
45,674
|
|
||||
Dilutive effect of stock options and restricted stock units
|
1,588
|
|
|
—
|
|
|
1,128
|
|
|
2,387
|
|
||||
Weighted average common shares - diluted
|
46,010
|
|
|
45,853
|
|
|
46,887
|
|
|
48,061
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Basic earnings (loss) per share:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
0.63
|
|
|
$
|
(0.93
|
)
|
|
$
|
1.63
|
|
|
$
|
0.02
|
|
Discontinued operations
|
(0.01
|
)
|
|
(0.10
|
)
|
|
0.15
|
|
|
(0.19
|
)
|
||||
Basic earnings per share
|
$
|
0.62
|
|
|
$
|
(1.03
|
)
|
|
$
|
1.78
|
|
|
$
|
(0.17
|
)
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings (loss) per share:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
0.61
|
|
|
$
|
(0.93
|
)
|
|
$
|
1.59
|
|
|
$
|
0.03
|
|
Discontinued operations
|
(0.01
|
)
|
|
(0.10
|
)
|
|
0.15
|
|
|
(0.19
|
)
|
||||
Diluted earnings per share
|
$
|
0.60
|
|
|
$
|
(1.03
|
)
|
|
$
|
1.74
|
|
|
$
|
(0.16
|
)
|
(1) As of December 31, 2018, the Company made certain insignificant adjustments to previously-reported Earnings Per Share ("EPS") to correctly reflect the effect of anti-dilutive shares on diluted EPS calculations in accordance with ASC 260. These changes were immaterial to the overall EPS calculation. Diluted loss per share for the three months ended September 30, 2018 of $0.97 was corrected to $1.03.
|
|
Nine Months Ended
September 30, |
||||||
|
2019
|
|
2018
|
||||
Cash paid for:
|
|
|
|
||||
Interest
|
$
|
65,627
|
|
|
$
|
80,748
|
|
Income taxes, net of refunds
|
2,029
|
|
|
15,868
|
|
||
Non-cash investing activities:
|
|
|
|
||||
Property and equipment accrued in accounts payable
|
$
|
604
|
|
|
$
|
1,240
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Revenues by segment:
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
237,069
|
|
|
$
|
223,273
|
|
|
$
|
673,234
|
|
|
$
|
617,992
|
|
Canada
|
|
60,195
|
|
|
46,209
|
|
|
166,269
|
|
|
139,502
|
|
||||
Consolidated revenue
|
|
$
|
297,264
|
|
|
$
|
269,482
|
|
|
$
|
839,503
|
|
|
$
|
757,494
|
|
Gross margin by segment:
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
77,250
|
|
|
$
|
60,105
|
|
|
$
|
232,120
|
|
|
$
|
215,497
|
|
Canada
|
|
19,389
|
|
|
489
|
|
|
51,197
|
|
|
28,291
|
|
||||
Consolidated gross margin
|
|
$
|
96,639
|
|
|
$
|
60,594
|
|
|
$
|
283,317
|
|
|
$
|
243,788
|
|
Segment operating income (loss):
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
28,092
|
|
|
$
|
(53,624
|
)
|
|
$
|
76,316
|
|
|
$
|
(11,430
|
)
|
Canada
|
|
11,134
|
|
|
(5,880
|
)
|
|
26,749
|
|
|
12,202
|
|
||||
Consolidated operating profit
|
|
$
|
39,226
|
|
|
$
|
(59,504
|
)
|
|
$
|
103,065
|
|
|
$
|
772
|
|
Expenditures for long-lived assets by segment:
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
2,890
|
|
|
$
|
4,483
|
|
|
$
|
7,888
|
|
|
$
|
6,466
|
|
Canada
|
|
216
|
|
|
590
|
|
|
1,382
|
|
|
1,564
|
|
||||
Consolidated expenditures for long-lived assets
|
|
$
|
3,106
|
|
|
$
|
5,073
|
|
|
$
|
9,270
|
|
|
$
|
8,030
|
|
|
|
September 30,
2019 |
|
December 31,
2018 |
||||
U.S.
|
|
$
|
370,967
|
|
|
$
|
361,473
|
|
Canada
|
|
286,648
|
|
|
210,058
|
|
||
Total gross loans receivable
|
|
$
|
657,615
|
|
|
$
|
571,531
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
U.S.
|
|
$
|
42,937
|
|
|
$
|
47,918
|
|
Canada
|
|
27,444
|
|
|
28,832
|
|
||
Total net long-lived assets
|
|
$
|
70,381
|
|
|
$
|
76,750
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||
|
2019
|
|
2019
|
||||
Operating lease costs:
|
|
|
|
||||
Third-Party
|
$
|
7,687
|
|
|
$
|
23,000
|
|
Related-Party
|
865
|
|
|
2,595
|
|
||
Total
|
$
|
8,552
|
|
|
$
|
25,595
|
|
|
|
Third-Party
|
|
Related-Party
|
|
Total
|
||||||
Remainder of 2019
|
|
$
|
7,698
|
|
|
$
|
922
|
|
|
$
|
8,620
|
|
2020
|
|
29,596
|
|
|
3,752
|
|
|
33,348
|
|
|||
2021
|
|
26,450
|
|
|
3,772
|
|
|
30,222
|
|
|||
2022
|
|
23,387
|
|
|
3,669
|
|
|
27,056
|
|
|||
2023
|
|
18,674
|
|
|
1,313
|
|
|
19,987
|
|
|||
2024
|
|
14,088
|
|
|
963
|
|
|
15,051
|
|
|||
Thereafter
|
|
35,697
|
|
|
3,414
|
|
|
39,111
|
|
|||
Total
|
|
155,590
|
|
|
17,805
|
|
|
173,395
|
|
|||
Less: Imputed interest
|
|
(42,920
|
)
|
|
(4,427
|
)
|
|
(47,347
|
)
|
|||
Operating lease liabilities
|
|
$
|
112,670
|
|
|
$
|
13,378
|
|
|
$
|
126,048
|
|
|
September 30,
2019 |
December 31,
2018 |
||||
ASSETS
|
||||||
Cash
|
$
|
—
|
|
$
|
9,859
|
|
Restricted cash
|
—
|
|
3,384
|
|
||
Gross loans receivable
|
—
|
|
25,256
|
|
||
Less: allowance for loan losses
|
—
|
|
(5,387
|
)
|
||
Loans receivable, net
|
—
|
|
19,869
|
|
||
Prepaid expenses and other
|
—
|
|
1,482
|
|
||
Other
|
—
|
|
267
|
|
||
Total assets classified as discontinued operations in the Condensed Consolidated Balance Sheets
|
$
|
—
|
|
$
|
34,861
|
|
LIABILITIES
|
||||||
Accounts payable and accrued liabilities
|
$
|
—
|
|
$
|
8,136
|
|
Deferred revenue
|
—
|
|
180
|
|
||
Accrued interest
|
—
|
|
(5
|
)
|
||
Deferred rent
|
—
|
|
149
|
|
||
Other long-term liabilities
|
—
|
|
422
|
|
||
Total liabilities classified as discontinued operations in the Condensed Consolidated Balance Sheets
|
$
|
—
|
|
$
|
8,882
|
|
(i)
|
The Company's subsidiary guarantors, which are comprised of its domestic subsidiaries, including CFTC as the issuer of the 12.00% Senior Secured Notes that were redeemed in August 2018, CURO Intermediate, and U.S. SPV as the issuer of the Non-Recourse U.S. SPV Facility that was extinguished in October 2018, and excluding Canada SPV (the “Subsidiary Guarantors”), on a consolidated basis, which are 100% owned by CURO, and which are guarantors of the 8.25% Senior Secured Notes issued in August 2018;
|
(ii)
|
The Company's other subsidiaries on a consolidated basis, which are not guarantors of the 8.25% Senior Secured Notes (the “Subsidiary Non-Guarantors”);
|
(iii)
|
The Non-recourse Canada SPV facility, a wholly-owned, bankruptcy-remote special purpose subsidiary;
|
(iv)
|
CURO as the issuer of the 8.25% Senior Secured Notes;
|
(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 subsidiaries;
|
(vi)
|
The Company and its subsidiaries on a consolidated basis.
|
|
September 30, 2019
|
|||||||||||||||||
(dollars in thousands)
|
Subsidiary
Guarantors
|
Subsidiary
Non-Guarantors
|
Canada SPV
|
CURO
|
Eliminations
|
CURO
Consolidated |
||||||||||||
Assets:
|
|
|
|
|
|
|
||||||||||||
Cash
|
$
|
40,683
|
|
$
|
21,524
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
62,207
|
|
Restricted cash
|
13,773
|
|
3,084
|
|
21,897
|
|
—
|
|
—
|
|
38,754
|
|
||||||
Loans receivable, net
|
293,711
|
|
49,362
|
|
206,157
|
|
—
|
|
—
|
|
549,230
|
|
||||||
Right of use asset - operating leases
|
76,165
|
|
42,095
|
|
—
|
|
—
|
|
—
|
|
118,260
|
|
||||||
Deferred income taxes
|
(9,086
|
)
|
—
|
|
—
|
|
10,932
|
|
—
|
|
1,846
|
|
||||||
Income taxes receivable
|
(960
|
)
|
3,974
|
|
—
|
|
20,952
|
|
—
|
|
23,966
|
|
||||||
Prepaid expenses and other
|
24,148
|
|
8,083
|
|
(3
|
)
|
—
|
|
—
|
|
32,228
|
|
||||||
Property and equipment, net
|
42,937
|
|
27,444
|
|
—
|
|
—
|
|
—
|
|
70,381
|
|
||||||
Goodwill
|
91,131
|
|
28,979
|
|
—
|
|
—
|
|
—
|
|
120,110
|
|
||||||
Other intangibles, net
|
10,687
|
|
21,979
|
|
—
|
|
—
|
|
—
|
|
32,666
|
|
||||||
Intercompany receivable
|
112,413
|
|
—
|
|
—
|
|
—
|
|
(112,413
|
)
|
—
|
|
||||||
Investment in subsidiaries
|
—
|
|
—
|
|
—
|
|
37,131
|
|
(37,131
|
)
|
—
|
|
||||||
Other
|
17,805
|
|
679
|
|
—
|
|
—
|
|
—
|
|
18,484
|
|
||||||
Total assets
|
$
|
713,407
|
|
$
|
207,203
|
|
$
|
228,051
|
|
$
|
69,015
|
|
$
|
(149,544
|
)
|
$
|
1,068,132
|
|
Liabilities and Stockholders' equity:
|
|
|
|
|
|
|
||||||||||||
Accounts payable and accrued liabilities
|
$
|
48,657
|
|
$
|
6,773
|
|
$
|
7,259
|
|
$
|
996
|
|
$
|
—
|
|
$
|
63,685
|
|
Deferred revenue
|
5,639
|
|
3,369
|
|
44
|
|
—
|
|
—
|
|
9,052
|
|
||||||
Lease liability - operating leases
|
83,891
|
|
42,157
|
|
—
|
|
—
|
|
—
|
|
126,048
|
|
||||||
Income taxes payable
|
(4,030
|
)
|
—
|
|
—
|
|
4,030
|
|
—
|
|
—
|
|
||||||
Accrued interest
|
104
|
|
—
|
|
777
|
|
4,744
|
|
—
|
|
5,625
|
|
||||||
Payable to CURO Holdings Corp.
|
657,895
|
|
—
|
|
—
|
|
(657,895
|
)
|
—
|
|
—
|
|
||||||
CSO liability for losses
|
10,249
|
|
—
|
|
—
|
|
—
|
|
—
|
|
10,249
|
|
||||||
Debt
|
25,000
|
|
—
|
|
102,483
|
|
677,924
|
|
—
|
|
805,407
|
|
||||||
Intercompany payable
|
—
|
|
18,742
|
|
93,671
|
|
—
|
|
(112,413
|
)
|
—
|
|
||||||
Other liabilities
|
8,114
|
|
480
|
|
—
|
|
—
|
|
—
|
|
8,594
|
|
||||||
Deferred tax liabilities
|
(4,171
|
)
|
4,427
|
|
—
|
|
4,171
|
|
—
|
|
4,427
|
|
||||||
Total liabilities
|
831,348
|
|
75,948
|
|
204,234
|
|
33,970
|
|
(112,413
|
)
|
1,033,087
|
|
||||||
Stockholders' equity
|
(117,941
|
)
|
131,255
|
|
23,817
|
|
35,045
|
|
(37,131
|
)
|
35,045
|
|
||||||
Total liabilities and stockholders' equity
|
$
|
713,407
|
|
$
|
207,203
|
|
$
|
228,051
|
|
$
|
69,015
|
|
$
|
(149,544
|
)
|
$
|
1,068,132
|
|
|
December 31, 2018
|
|||||||||||||||||
(dollars in thousands)
|
Subsidiary
Guarantors |
Subsidiary
Non-Guarantors |
Canada SPV
|
CURO
|
Eliminations
|
CURO
Consolidated |
||||||||||||
Assets:
|
|
|
|
|
|
|
||||||||||||
Cash
|
$
|
42,403
|
|
$
|
18,772
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
61,175
|
|
Restricted cash
|
9,993
|
|
2,606
|
|
12,840
|
|
—
|
|
—
|
|
25,439
|
|
||||||
Loans receivable, net
|
304,542
|
|
56,805
|
|
136,187
|
|
—
|
|
—
|
|
497,534
|
|
||||||
Deferred income taxes
|
—
|
|
1,534
|
|
—
|
|
—
|
|
—
|
|
1,534
|
|
||||||
Income taxes receivable
|
7,190
|
|
—
|
|
—
|
|
9,551
|
|
—
|
|
16,741
|
|
||||||
Prepaid expenses and other
|
37,866
|
|
5,722
|
|
—
|
|
—
|
|
—
|
|
43,588
|
|
||||||
Property and equipment, net
|
47,918
|
|
28,832
|
|
—
|
|
—
|
|
—
|
|
76,750
|
|
||||||
Goodwill
|
91,131
|
|
28,150
|
|
—
|
|
—
|
|
—
|
|
119,281
|
|
||||||
Other intangibles, net
|
8,418
|
|
21,366
|
|
—
|
|
—
|
|
—
|
|
29,784
|
|
||||||
Intercompany receivable
|
77,009
|
|
—
|
|
—
|
|
—
|
|
(77,009
|
)
|
—
|
|
||||||
Investment in subsidiaries
|
—
|
|
—
|
|
—
|
|
(101,665
|
)
|
101,665
|
|
—
|
|
||||||
Other
|
12,253
|
|
677
|
|
—
|
|
—
|
|
—
|
|
12,930
|
|
||||||
Assets from discontinued operations
|
—
|
|
2,406
|
|
—
|
|
—
|
|
32,455
|
|
34,861
|
|
||||||
Total assets
|
$
|
638,723
|
|
$
|
166,870
|
|
$
|
149,027
|
|
$
|
(92,114
|
)
|
$
|
57,111
|
|
$
|
919,617
|
|
Liabilities and Stockholder's equity:
|
|
|
|
|
|
|
||||||||||||
Accounts payable and accrued liabilities
|
$
|
38,240
|
|
$
|
5,734
|
|
$
|
4,980
|
|
$
|
192
|
|
$
|
—
|
|
$
|
49,146
|
|
Deferred revenue
|
5,981
|
|
3,462
|
|
40
|
|
—
|
|
—
|
|
9,483
|
|
||||||
Income taxes payable
|
—
|
|
1,579
|
|
—
|
|
—
|
|
—
|
|
1,579
|
|
||||||
Accrued interest
|
149
|
|
—
|
|
831
|
|
19,924
|
|
—
|
|
20,904
|
|
||||||
Payable to CURO Holdings Corp.
|
768,345
|
|
—
|
|
—
|
|
(768,345
|
)
|
—
|
|
—
|
|
||||||
CSO liability for losses
|
12,007
|
|
—
|
|
—
|
|
—
|
|
—
|
|
12,007
|
|
||||||
Deferred rent
|
9,559
|
|
1,292
|
|
—
|
|
—
|
|
—
|
|
10,851
|
|
||||||
Debt
|
20,000
|
|
—
|
|
107,479
|
|
676,661
|
|
—
|
|
804,140
|
|
||||||
Subordinated shareholder debt
|
—
|
|
2,196
|
|
—
|
|
—
|
|
—
|
|
2,196
|
|
||||||
Intercompany payable
|
—
|
|
224
|
|
44,330
|
|
—
|
|
(44,554
|
)
|
—
|
|
||||||
Other liabilities
|
4,967
|
|
833
|
|
—
|
|
—
|
|
—
|
|
5,800
|
|
||||||
Deferred tax liabilities
|
15,175
|
|
—
|
|
—
|
|
(1,445
|
)
|
—
|
|
13,730
|
|
||||||
Liabilities from discontinued operations
|
—
|
|
8,882
|
|
—
|
|
—
|
|
—
|
|
8,882
|
|
||||||
Total liabilities
|
874,423
|
|
24,202
|
|
157,660
|
|
(73,013
|
)
|
(44,554
|
)
|
938,718
|
|
||||||
Stockholders' equity
|
(235,700
|
)
|
142,668
|
|
(8,633
|
)
|
(19,101
|
)
|
101,665
|
|
(19,101
|
)
|
||||||
Total liabilities and stockholders' equity
|
$
|
638,723
|
|
$
|
166,870
|
|
$
|
149,027
|
|
$
|
(92,114
|
)
|
$
|
57,111
|
|
$
|
919,617
|
|
|
Three Months Ended September 30, 2019
|
|||||||||||||||||
(dollars in thousands)
|
Subsidiary
Guarantors |
Subsidiary
Non-Guarantors |
Canada SPV
|
CURO
|
Eliminations
|
CURO
Consolidated |
||||||||||||
Revenue
|
$
|
237,069
|
|
$
|
29,984
|
|
$
|
30,211
|
|
$
|
—
|
|
$
|
—
|
|
$
|
297,264
|
|
Provision for losses
|
102,997
|
|
7,191
|
|
13,679
|
|
—
|
|
—
|
|
123,867
|
|
||||||
Net revenue
|
134,072
|
|
22,793
|
|
16,532
|
|
—
|
|
—
|
|
173,397
|
|
||||||
Cost of providing services:
|
|
|
|
|
|
|
|
|||||||||||
Salaries and benefits
|
18,301
|
|
9,161
|
|
—
|
|
—
|
|
—
|
|
27,462
|
|
||||||
Occupancy
|
8,249
|
|
5,787
|
|
—
|
|
—
|
|
—
|
|
14,036
|
|
||||||
Office
|
4,611
|
|
1,382
|
|
—
|
|
—
|
|
—
|
|
5,993
|
|
||||||
Other costs of providing services
|
11,475
|
|
1,368
|
|
—
|
|
—
|
|
—
|
|
12,843
|
|
||||||
Advertising
|
14,186
|
|
2,238
|
|
—
|
|
—
|
|
—
|
|
16,424
|
|
||||||
Total cost of providing services
|
56,822
|
|
19,936
|
|
—
|
|
—
|
|
—
|
|
76,758
|
|
||||||
Gross margin
|
77,250
|
|
2,857
|
|
16,532
|
|
—
|
|
—
|
|
96,639
|
|
||||||
Operating expense (income) :
|
|
|
|
|
|
|
|
|||||||||||
Corporate, district and other expenses
|
29,930
|
|
5,296
|
|
472
|
|
2,967
|
|
—
|
|
38,665
|
|
||||||
Intercompany management fee
|
(3,276
|
)
|
3,268
|
|
8
|
|
—
|
|
—
|
|
—
|
|
||||||
Interest expense
|
258
|
|
24
|
|
2,463
|
|
14,619
|
|
—
|
|
17,364
|
|
||||||
Loss from equity method investment
|
1,384
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,384
|
|
||||||
Intercompany interest (income) expense
|
(1,462
|
)
|
893
|
|
569
|
|
—
|
|
—
|
|
—
|
|
||||||
Total operating expense
|
26,834
|
|
9,481
|
|
3,512
|
|
17,586
|
|
—
|
|
57,413
|
|
||||||
Income (loss) from continuing operations before income taxes
|
50,416
|
|
(6,624
|
)
|
13,020
|
|
(17,586
|
)
|
—
|
|
39,226
|
|
||||||
Provision (benefit) for income tax expense
|
13,700
|
|
1,986
|
|
—
|
|
(4,447
|
)
|
—
|
|
11,239
|
|
||||||
Net income (loss) from continuing operations
|
36,716
|
|
(8,610
|
)
|
13,020
|
|
(13,139
|
)
|
—
|
|
27,987
|
|
||||||
Net loss on discontinued operations
|
—
|
|
(598
|
)
|
—
|
|
—
|
|
—
|
|
(598
|
)
|
||||||
Net (loss) income
|
36,716
|
|
(9,208
|
)
|
13,020
|
|
(13,139
|
)
|
—
|
|
27,389
|
|
||||||
Equity in net income (loss) of subsidiaries:
|
|
|
|
|
|
|
||||||||||||
CFTC
|
—
|
|
—
|
|
—
|
|
40,528
|
|
(40,528
|
)
|
—
|
|
||||||
Guarantor Subsidiaries
|
36,716
|
|
—
|
|
—
|
|
—
|
|
(36,716
|
)
|
—
|
|
||||||
Non-Guarantor Subsidiaries
|
(9,208
|
)
|
—
|
|
—
|
|
—
|
|
9,208
|
|
—
|
|
||||||
SPV Subs
|
13,020
|
|
—
|
|
—
|
|
—
|
|
(13,020
|
)
|
—
|
|
||||||
Net income (loss) attributable to CURO
|
$
|
77,244
|
|
$
|
(9,208
|
)
|
$
|
13,020
|
|
$
|
27,389
|
|
$
|
(81,056
|
)
|
$
|
27,389
|
|
|
Three Months Ended September 30, 2018
|
|||||||||||||||||||||||||||||
(dollars in thousands)
|
CFTC
|
CURO Intermediate
|
Subsidiary Guarantors
|
Subsidiary Non-Guarantors
|
SPV Subs
|
Eliminations
|
CFTC
Consolidated
|
CURO
|
Eliminations
|
CURO Consolidated
|
||||||||||||||||||||
Revenue
|
$
|
—
|
|
$
|
—
|
|
$
|
141,385
|
|
$
|
39,814
|
|
$
|
88,283
|
|
$
|
—
|
|
$
|
269,482
|
|
$
|
—
|
|
$
|
—
|
|
$
|
269,482
|
|
Provision for losses
|
—
|
|
—
|
|
58,514
|
|
5,860
|
|
63,318
|
|
—
|
|
127,692
|
|
—
|
|
—
|
|
127,692
|
|
||||||||||
Net revenue
|
—
|
|
—
|
|
82,871
|
|
33,954
|
|
24,965
|
|
—
|
|
141,790
|
|
—
|
|
—
|
|
141,790
|
|
||||||||||
Cost of providing services:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Salaries and benefits
|
—
|
|
—
|
|
17,579
|
|
8,936
|
|
—
|
|
—
|
|
26,515
|
|
—
|
|
—
|
|
26,515
|
|
||||||||||
Occupancy
|
—
|
|
—
|
|
7,875
|
|
5,647
|
|
—
|
|
—
|
|
13,522
|
|
—
|
|
—
|
|
13,522
|
|
||||||||||
Office
|
—
|
|
—
|
|
5,586
|
|
1,740
|
|
—
|
|
—
|
|
7,326
|
|
—
|
|
—
|
|
7,326
|
|
||||||||||
Other store operating expenses
|
—
|
|
—
|
|
10,650
|
|
1,244
|
|
590
|
|
—
|
|
12,484
|
|
—
|
|
—
|
|
12,484
|
|
||||||||||
Advertising
|
—
|
|
—
|
|
17,632
|
|
3,717
|
|
—
|
|
—
|
|
21,349
|
|
—
|
|
—
|
|
21,349
|
|
||||||||||
Total cost of providing services
|
—
|
|
—
|
|
59,322
|
|
21,284
|
|
590
|
|
—
|
|
81,196
|
|
—
|
|
—
|
|
81,196
|
|
||||||||||
Gross Margin
|
—
|
|
—
|
|
23,549
|
|
12,670
|
|
24,375
|
|
—
|
|
60,594
|
|
—
|
|
—
|
|
60,594
|
|
||||||||||
Operating (income) expense:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Corporate, district and other expenses
|
(886
|
)
|
48
|
|
20,663
|
|
5,134
|
|
60
|
|
—
|
|
25,019
|
|
2,476
|
|
—
|
|
27,495
|
|
||||||||||
Intercompany management fee
|
—
|
|
—
|
|
(6,761
|
)
|
2,516
|
|
4,245
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Interest expense
|
12,503
|
|
—
|
|
(149
|
)
|
(38
|
)
|
5,276
|
|
—
|
|
17,592
|
|
5,811
|
|
—
|
|
23,403
|
|
||||||||||
Intercompany interest (income) expense
|
—
|
|
(916
|
)
|
(455
|
)
|
1,371
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Loss on extinguishment of debt
|
69,200
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
69,200
|
|
—
|
|
—
|
|
69,200
|
|
||||||||||
Total operating expense
|
80,817
|
|
(868
|
)
|
13,298
|
|
8,983
|
|
9,581
|
|
—
|
|
111,811
|
|
8,287
|
|
—
|
|
120,098
|
|
||||||||||
(Loss) income from continuing operations before income taxes
|
(80,817
|
)
|
868
|
|
10,251
|
|
3,687
|
|
14,794
|
|
—
|
|
(51,217
|
)
|
(8,287
|
)
|
—
|
|
(59,504
|
)
|
||||||||||
(Benefit) provision for income tax expense
|
(17,930
|
)
|
6,803
|
|
(2,177
|
)
|
(1,508
|
)
|
—
|
|
—
|
|
(14,812
|
)
|
(2,102
|
)
|
—
|
|
(16,914
|
)
|
||||||||||
Net (loss) income from continuing operations
|
(62,887
|
)
|
(5,935
|
)
|
12,428
|
|
5,195
|
|
14,794
|
|
—
|
|
(36,405
|
)
|
(6,185
|
)
|
—
|
|
(42,590
|
)
|
||||||||||
Net loss from discontinued operations
|
—
|
|
—
|
|
—
|
|
(4,432
|
)
|
—
|
|
—
|
|
(4,432
|
)
|
—
|
|
—
|
|
(4,432
|
)
|
||||||||||
Net (loss) income
|
(62,887
|
)
|
(5,935
|
)
|
12,428
|
|
763
|
|
14,794
|
|
—
|
|
(40,837
|
)
|
(6,185
|
)
|
—
|
|
(47,022
|
)
|
||||||||||
Equity in net income (loss) of subsidiaries:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
CFTC
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(40,837
|
)
|
40,837
|
|
—
|
|
||||||||||
CURO Intermediate
|
(5,935
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
5,935
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Guarantor Subsidiaries
|
12,428
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(12,428
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Non-Guarantor Subsidiaries
|
763
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(763
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
SPV Subs
|
14,794
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(14,794
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Net (loss) income attributable to CURO
|
$
|
(40,837
|
)
|
$
|
(5,935
|
)
|
$
|
12,428
|
|
$
|
763
|
|
$
|
14,794
|
|
$
|
(22,050
|
)
|
$
|
(40,837
|
)
|
$
|
(47,022
|
)
|
$
|
40,837
|
|
$
|
(47,022
|
)
|
|
Nine Months Ended September 30, 2019
|
|||||||||||||||||
(dollars in thousands)
|
Subsidiary
Guarantors |
Subsidiary
Non-Guarantors |
Canada SPV
|
CURO
|
Eliminations
|
CURO
Consolidated |
||||||||||||
Revenue
|
$
|
673,234
|
|
$
|
84,920
|
|
$
|
81,349
|
|
$
|
—
|
|
$
|
—
|
|
$
|
839,503
|
|
Provision for losses
|
280,529
|
|
17,634
|
|
40,099
|
|
—
|
|
—
|
|
338,262
|
|
||||||
Net revenue
|
392,705
|
|
67,286
|
|
41,250
|
|
—
|
|
—
|
|
501,241
|
|
||||||
Cost of providing services:
|
|
|
|
|
|
|
||||||||||||
Salaries and benefits
|
55,675
|
|
26,574
|
|
—
|
|
—
|
|
—
|
|
82,249
|
|
||||||
Occupancy
|
24,292
|
|
17,913
|
|
—
|
|
—
|
|
—
|
|
42,205
|
|
||||||
Office
|
12,504
|
|
4,059
|
|
—
|
|
—
|
|
—
|
|
16,563
|
|
||||||
Other costs of providing services
|
36,395
|
|
3,522
|
|
—
|
|
—
|
|
—
|
|
39,917
|
|
||||||
Advertising
|
31,719
|
|
5,271
|
|
—
|
|
—
|
|
—
|
|
36,990
|
|
||||||
Total cost of providing services
|
160,585
|
|
57,339
|
|
—
|
|
—
|
|
—
|
|
217,924
|
|
||||||
Gross margin
|
232,120
|
|
9,947
|
|
41,250
|
|
—
|
|
—
|
|
283,317
|
|
||||||
Operating expense (income):
|
|
|
|
|
|
|
||||||||||||
Corporate, district and other expenses
|
98,486
|
|
16,900
|
|
(283
|
)
|
7,940
|
|
—
|
|
123,043
|
|
||||||
Intercompany management fee
|
(9,576
|
)
|
9,553
|
|
23
|
|
—
|
|
—
|
|
—
|
|
||||||
Interest expense
|
575
|
|
103
|
|
7,728
|
|
43,671
|
|
—
|
|
52,077
|
|
||||||
Loss from equity method investment
|
5,132
|
|
—
|
|
—
|
|
—
|
|
—
|
|
5,132
|
|
||||||
Intercompany interest (income) expense
|
(3,855
|
)
|
2,663
|
|
1,192
|
|
—
|
|
—
|
|
—
|
|
||||||
Total operating expense
|
90,762
|
|
29,219
|
|
8,660
|
|
51,611
|
|
—
|
|
180,252
|
|
||||||
Income (loss) from continuing operations before income taxes
|
141,358
|
|
(19,272
|
)
|
32,590
|
|
(51,611
|
)
|
—
|
|
103,065
|
|
||||||
Provision (benefit) for income tax expense
|
37,309
|
|
4,115
|
|
—
|
|
(12,686
|
)
|
—
|
|
28,738
|
|
||||||
Net income (loss) from continuing operations
|
104,049
|
|
(23,387
|
)
|
32,590
|
|
(38,925
|
)
|
—
|
|
74,327
|
|
||||||
Net loss on discontinued operations
|
—
|
|
6,943
|
|
—
|
|
—
|
|
—
|
|
6,943
|
|
||||||
Net income (loss)
|
104,049
|
|
(16,444
|
)
|
32,590
|
|
(38,925
|
)
|
—
|
|
81,270
|
|
||||||
Equity in net income (loss) of subsidiaries:
|
|
|
|
|
|
|
||||||||||||
CFTC
|
—
|
|
—
|
|
—
|
|
120,195
|
|
(120,195
|
)
|
—
|
|
||||||
Guarantor Subsidiaries
|
104,049
|
|
—
|
|
—
|
|
—
|
|
(104,049
|
)
|
—
|
|
||||||
Non-Guarantor Subsidiaries
|
(16,444
|
)
|
—
|
|
—
|
|
—
|
|
16,444
|
|
—
|
|
||||||
SPV Subs
|
32,590
|
|
—
|
|
—
|
|
—
|
|
(32,590
|
)
|
—
|
|
||||||
Net income (loss) attributable to CURO
|
$
|
224,244
|
|
$
|
(16,444
|
)
|
$
|
32,590
|
|
$
|
81,270
|
|
$
|
(240,390
|
)
|
$
|
81,270
|
|
|
Nine Months Ended September 30, 2018
|
|||||||||||||||||||||||||||||
(dollars in thousands)
|
CFTC
|
CURO Intermediate
|
Subsidiary Guarantors
|
Subsidiary Non-Guarantors
|
SPV Subs
|
Eliminations
|
CFTC
Consolidated
|
CURO
|
Eliminations
|
CURO Consolidated
|
||||||||||||||||||||
Revenue
|
$
|
—
|
|
$
|
—
|
|
$
|
387,827
|
|
$
|
133,107
|
|
$
|
236,560
|
|
$
|
—
|
|
$
|
757,494
|
|
$
|
—
|
|
$
|
—
|
|
$
|
757,494
|
|
Provision for losses
|
—
|
|
—
|
|
140,603
|
|
32,770
|
|
117,549
|
|
—
|
|
290,922
|
|
—
|
|
—
|
|
290,922
|
|
||||||||||
Net revenue
|
—
|
|
—
|
|
247,224
|
|
100,337
|
|
119,011
|
|
—
|
|
466,572
|
|
—
|
|
—
|
|
466,572
|
|
||||||||||
Cost of providing services:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Salaries and benefits
|
—
|
|
—
|
|
53,667
|
|
26,674
|
|
—
|
|
—
|
|
80,341
|
|
—
|
|
—
|
|
80,341
|
|
||||||||||
Occupancy
|
—
|
|
—
|
|
23,164
|
|
17,105
|
|
—
|
|
—
|
|
40,269
|
|
—
|
|
—
|
|
40,269
|
|
||||||||||
Office
|
—
|
|
—
|
|
15,416
|
|
3,895
|
|
—
|
|
—
|
|
19,311
|
|
—
|
|
—
|
|
19,311
|
|
||||||||||
Other store operating expenses
|
—
|
|
—
|
|
33,934
|
|
3,045
|
|
1,537
|
|
—
|
|
38,516
|
|
—
|
|
—
|
|
38,516
|
|
||||||||||
Advertising
|
—
|
|
—
|
|
35,200
|
|
9,147
|
|
—
|
|
—
|
|
44,347
|
|
—
|
|
—
|
|
44,347
|
|
||||||||||
Total cost of providing services
|
—
|
|
—
|
|
161,381
|
|
59,866
|
|
1,537
|
|
—
|
|
222,784
|
|
—
|
|
—
|
|
222,784
|
|
||||||||||
Gross Margin
|
—
|
|
—
|
|
85,843
|
|
40,471
|
|
117,474
|
|
—
|
|
243,788
|
|
—
|
|
—
|
|
243,788
|
|
||||||||||
Operating expense (income):
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Corporate, district and other expenses
|
20
|
|
73
|
|
74,038
|
|
14,789
|
|
137
|
|
—
|
|
89,057
|
|
6,847
|
|
—
|
|
95,904
|
|
||||||||||
Intercompany management fee
|
—
|
|
—
|
|
(19,718
|
)
|
8,425
|
|
11,293
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Interest expense
|
47,410
|
|
—
|
|
(321
|
)
|
26
|
|
13,303
|
|
—
|
|
60,418
|
|
5,811
|
|
—
|
|
66,229
|
|
||||||||||
Intercompany interest (income) expense
|
—
|
|
(2,700
|
)
|
(526
|
)
|
3,226
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Loss on extinguishment of debt
|
80,883
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
80,883
|
|
—
|
|
—
|
|
80,883
|
|
||||||||||
Total operating expense
|
128,313
|
|
(2,627
|
)
|
53,473
|
|
26,466
|
|
24,733
|
|
—
|
|
230,358
|
|
12,658
|
|
—
|
|
243,016
|
|
||||||||||
(Loss) income from continuing operations before income taxes
|
(128,313
|
)
|
2,627
|
|
32,370
|
|
14,005
|
|
92,741
|
|
—
|
|
13,430
|
|
(12,658
|
)
|
—
|
|
772
|
|
||||||||||
(Benefit) provision for income tax expense
|
(30,189
|
)
|
38,830
|
|
(8,220
|
)
|
2,521
|
|
—
|
|
—
|
|
2,942
|
|
(3,211
|
)
|
—
|
|
(269
|
)
|
||||||||||
Net (loss) income from continuing operations
|
(98,124
|
)
|
(36,203
|
)
|
40,590
|
|
11,484
|
|
92,741
|
|
—
|
|
10,488
|
|
(9,447
|
)
|
—
|
|
1,041
|
|
||||||||||
Net loss from discontinued operations
|
—
|
|
—
|
|
—
|
|
(8,796
|
)
|
—
|
|
—
|
|
(8,796
|
)
|
—
|
|
—
|
|
(8,796
|
)
|
||||||||||
Net (loss) income
|
(98,124
|
)
|
(36,203
|
)
|
40,590
|
|
2,688
|
|
92,741
|
|
—
|
|
1,692
|
|
(9,447
|
)
|
—
|
|
(7,755
|
)
|
||||||||||
Equity in net (loss) income of subsidiaries:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
CFTC
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,692
|
|
(1,692
|
)
|
—
|
|
||||||||||
CURO Intermediate
|
(36,203
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
36,203
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Guarantor Subsidiaries
|
40,590
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(40,590
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Non-Guarantor Subsidiaries
|
2,688
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(2,688
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
SPV Subs
|
92,741
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(92,741
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Net income (loss) attributable to CURO
|
$
|
1,692
|
|
$
|
(36,203
|
)
|
$
|
40,590
|
|
$
|
2,688
|
|
$
|
92,741
|
|
$
|
(99,816
|
)
|
$
|
1,692
|
|
$
|
(7,755
|
)
|
$
|
(1,692
|
)
|
$
|
(7,755
|
)
|
|
Nine Months Ended September 30, 2019
|
|||||||||||||||||
(dollars in thousands)
|
Subsidiary Guarantors
|
Subsidiary
Non-Guarantors
|
Canada SPV
|
CURO
|
Eliminations
|
CURO Consolidated
|
||||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|||||||||
Net cash provided by continuing operating activities
|
$
|
273,564
|
|
$
|
17,201
|
|
$
|
119,898
|
|
$
|
52,311
|
|
$
|
1,319
|
|
$
|
464,293
|
|
Net cash used in discontinued operating activities
|
—
|
|
(504
|
)
|
—
|
|
—
|
|
—
|
|
(504
|
)
|
||||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Purchase of property, equipment and software
|
(7,351
|
)
|
(1,316
|
)
|
—
|
|
—
|
|
—
|
|
(8,667
|
)
|
||||||
Originations of loans, net
|
(261,073
|
)
|
(11,042
|
)
|
(102,238
|
)
|
—
|
|
—
|
|
(374,353
|
)
|
||||||
Investment in Zibby
|
(8,168
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(8,168
|
)
|
||||||
Net cash used in continuing investing activities
|
(276,592
|
)
|
(12,358
|
)
|
(102,238
|
)
|
—
|
|
—
|
|
(391,188
|
)
|
||||||
Net cash used in discontinued investing activities
|
—
|
|
(14,213
|
)
|
—
|
|
—
|
|
—
|
|
(14,213
|
)
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Proceeds from Non-Recourse Canada SPV facility
|
—
|
|
—
|
|
15,992
|
|
—
|
|
—
|
|
15,992
|
|
||||||
Payments on Non-Recourse Canada SPV facility
|
—
|
|
—
|
|
(24,835
|
)
|
—
|
|
—
|
|
(24,835
|
)
|
||||||
Proceeds from credit facilities
|
120,000
|
|
59,811
|
|
—
|
|
—
|
|
—
|
|
179,811
|
|
||||||
Payments on credit facilities
|
(115,000
|
)
|
(59,811
|
)
|
—
|
|
—
|
|
—
|
|
(174,811
|
)
|
||||||
Payments on subordinated stockholder debt
|
—
|
|
(2,252
|
)
|
—
|
|
—
|
|
—
|
|
(2,252
|
)
|
||||||
Payments to net share settle RSUs
|
—
|
|
—
|
|
—
|
|
(110
|
)
|
—
|
|
(110
|
)
|
||||||
Proceeds from exercise of stock options
|
87
|
|
—
|
|
—
|
|
—
|
|
—
|
|
87
|
|
||||||
Debt issuance costs paid
|
—
|
|
—
|
|
(169
|
)
|
(29
|
)
|
—
|
|
(198
|
)
|
||||||
Repurchase of common stock
|
—
|
|
—
|
|
—
|
|
(52,172
|
)
|
—
|
|
(52,172
|
)
|
||||||
Net cash used in provided by financing activities (1)
|
5,087
|
|
(2,252
|
)
|
(9,012
|
)
|
(52,311
|
)
|
—
|
|
(58,488
|
)
|
||||||
|
|
|
|
|
|
|
||||||||||||
Effect of exchange rate changes on cash and restricted cash
|
—
|
|
2,114
|
|
409
|
|
—
|
|
(1,319
|
)
|
1,204
|
|
||||||
Net increase (decrease) in cash and restricted cash
|
2,059
|
|
(10,012
|
)
|
9,057
|
|
—
|
|
—
|
|
1,104
|
|
||||||
Cash and restricted cash at beginning of period
|
52,397
|
|
34,620
|
|
12,840
|
|
—
|
|
—
|
|
99,857
|
|
||||||
Cash at end of period
|
$
|
54,456
|
|
$
|
24,608
|
|
$
|
21,897
|
|
$
|
—
|
|
$
|
—
|
|
$
|
100,961
|
|
(1) Financing activities include continuing operations only and were not impacted by discontinued operations
|
|
Nine Months Ended September 30, 2018
|
|||||||||||||||||||||||
(dollars in thousands)
|
CFTC
|
Subsidiary Guarantors
|
Subsidiary
Non-Guarantors
|
SPV Subs
|
Eliminations
|
CFTC
Consolidated
|
CURO
|
CURO
Consolidated |
||||||||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net cash provided by (used in) continuing operating activities
|
$
|
628,468
|
|
$
|
167,265
|
|
$
|
(5,013
|
)
|
$
|
221,222
|
|
$
|
22,344
|
|
$
|
1,034,286
|
|
$
|
(677,207
|
)
|
$
|
357,079
|
|
Net cash provided by (used in) discontinued operating activities
|
—
|
|
—
|
|
23,737
|
|
—
|
|
(18,175
|
)
|
5,562
|
|
—
|
|
5,562
|
|
||||||||
Net cash provided by (used in) operating activities
|
628,468
|
|
167,265
|
|
18,724
|
|
221,222
|
|
4,169
|
|
1,039,848
|
|
(677,207
|
)
|
362,641
|
|
||||||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Purchase of property, equipment and software
|
—
|
|
(6,466
|
)
|
(1,564
|
)
|
—
|
|
—
|
|
(8,030
|
)
|
—
|
|
(8,030
|
)
|
||||||||
Originations of loans, net
|
—
|
|
(162,031
|
)
|
(558
|
)
|
(249,846
|
)
|
—
|
|
(412,435
|
)
|
—
|
|
(412,435
|
)
|
||||||||
Investment in Zibby
|
(958
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(958
|
)
|
—
|
|
(958
|
)
|
||||||||
Net cash used in continuing investing activities
|
(958
|
)
|
(168,497
|
)
|
(2,122
|
)
|
(249,846
|
)
|
—
|
|
(421,423
|
)
|
—
|
|
(421,423
|
)
|
||||||||
Net cash used in discontinued investing activities
|
—
|
|
—
|
|
(24,481
|
)
|
—
|
|
—
|
|
(24,481
|
)
|
—
|
|
(24,481
|
)
|
||||||||
Net cash used in investing activities
|
(958
|
)
|
(168,497
|
)
|
(26,603
|
)
|
(249,846
|
)
|
—
|
|
(445,904
|
)
|
—
|
|
(445,904
|
)
|
||||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Proceeds from Non-Recourse U.S. and Canada SPV facilities
|
—
|
|
—
|
|
—
|
|
106,949
|
|
—
|
|
106,949
|
|
—
|
|
106,949
|
|
||||||||
Payments on Non-Recourse U.S. and Canada SPV facilities
|
—
|
|
—
|
|
—
|
|
(61,590
|
)
|
—
|
|
(61,590
|
)
|
—
|
|
(61,590
|
)
|
||||||||
Proceeds from credit facilities
|
39,000
|
|
—
|
|
26,169
|
|
—
|
|
—
|
|
65,169
|
|
—
|
|
65,169
|
|
||||||||
Payments on credit facilities
|
(10,000
|
)
|
—
|
|
(26,169
|
)
|
—
|
|
—
|
|
(36,169
|
)
|
—
|
|
(36,169
|
)
|
||||||||
Net proceeds from issuance of common stock
|
11,549
|
|
—
|
|
—
|
|
—
|
|
—
|
|
11,549
|
|
—
|
|
11,549
|
|
||||||||
Proceeds from exercise of stock options
|
408
|
|
—
|
|
—
|
|
—
|
|
—
|
|
408
|
|
—
|
|
408
|
|
||||||||
Payments on 12.00% Senior Secured Notes
|
(605,000
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(605,000
|
)
|
—
|
|
(605,000
|
)
|
||||||||
Payments of call premiums from early debt extinguishments
|
(63,350
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(63,350
|
)
|
—
|
|
(63,350
|
)
|
||||||||
Debt issuance costs paid
|
(117
|
)
|
—
|
|
—
|
|
(4,527
|
)
|
—
|
|
(4,644
|
)
|
(12,873
|
)
|
(17,517
|
)
|
||||||||
Net cash (used in) provided by financing activities (1)
|
(627,510
|
)
|
—
|
|
—
|
|
40,832
|
|
—
|
|
(586,678
|
)
|
677,127
|
|
90,449
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||
Effect of exchange rate changes on cash
|
—
|
|
—
|
|
61
|
|
28
|
|
(4,169
|
)
|
(4,080
|
)
|
—
|
|
(4,080
|
)
|
||||||||
Net (decrease) increase in cash and restricted cash
|
—
|
|
(1,232
|
)
|
(7,818
|
)
|
12,236
|
|
—
|
|
3,186
|
|
(80
|
)
|
3,106
|
|
||||||||
Cash and restricted cash at beginning of period
|
—
|
|
119,056
|
|
48,484
|
|
6,871
|
|
—
|
|
174,411
|
|
80
|
|
174,491
|
|
||||||||
Cash and restricted cash at end of period
|
—
|
|
117,824
|
|
40,666
|
|
19,107
|
|
—
|
|
177,597
|
|
—
|
|
177,597
|
|
||||||||
Less: Cash and restricted cash at end of period of Discontinued Operations
|
—
|
|
—
|
|
11,303
|
|
—
|
|
—
|
|
11,303
|
|
—
|
|
11,303
|
|
||||||||
Cash and restricted cash at end of period of Continuing Operations
|
$
|
—
|
|
$
|
117,824
|
|
$
|
29,363
|
|
$
|
19,107
|
|
$
|
—
|
|
$
|
166,294
|
|
$
|
—
|
|
$
|
166,294
|
|
(1) Financing activities include continuing operations only and were not impacted by discontinued operations.
|
|
|
Three Months Ended September 30, 2019
|
Nine Months Ended September 30, 2019
|
||||
Total number of shares repurchased
|
|
1,912,041
|
|
2,156,241
|
|
||
Average price paid per share
|
|
$
|
12.27
|
|
$
|
12.04
|
|
Total value of shares repurchased
|
|
$
|
23,455
|
|
$
|
25,962
|
|
|
|
|
|
||||
Total authorized repurchase amount for the period presented
|
|
$
|
47,493
|
|
$
|
50,000
|
|
Total value of shares repurchased
|
|
23,455
|
|
25,962
|
|
||
Total remaining authorized repurchase amount
|
|
$
|
24,038
|
|
$
|
24,038
|
|
|
|
October 1 - November 1
|
||
|
|
2019
|
||
Total number of shares repurchased
|
|
868,100
|
|
|
Average price paid per share
|
|
$
|
13.03
|
|
Total value of shares repurchased
|
|
$
|
11,311
|
|
|
|
For the Three Months Ended
|
||||||||||||||||||
|
|
September 30, 2019
|
|
September 30, 2018
|
||||||||||||||||
|
|
U.S.
|
Canada
|
Total
|
|
U.S.
|
Canada
|
Total
|
||||||||||||
Unsecured Installment
|
|
$
|
135,541
|
|
$
|
1,692
|
|
$
|
137,233
|
|
|
$
|
135,028
|
|
$
|
2,632
|
|
$
|
137,660
|
|
Secured Installment
|
|
28,270
|
|
—
|
|
28,270
|
|
|
28,562
|
|
—
|
|
28,562
|
|
||||||
Open-End
|
|
39,605
|
|
26,515
|
|
66,120
|
|
|
27,554
|
|
12,736
|
|
40,290
|
|
||||||
Single-Pay
|
|
29,140
|
|
20,172
|
|
49,312
|
|
|
27,792
|
|
22,822
|
|
50,614
|
|
||||||
Ancillary
|
|
4,513
|
|
11,816
|
|
16,329
|
|
|
4,337
|
|
8,019
|
|
12,356
|
|
||||||
Total revenue
|
|
$
|
237,069
|
|
$
|
60,195
|
|
$
|
297,264
|
|
|
$
|
223,273
|
|
$
|
46,209
|
|
$
|
269,482
|
|
|
|
For the Nine Months Ended
|
||||||||||||||||||
|
|
September 30, 2019
|
|
September 30, 2018
|
||||||||||||||||
|
|
U.S.
|
Canada
|
Total
|
|
U.S.
|
Canada
|
Total
|
||||||||||||
Unsecured Installment
|
|
$
|
390,026
|
|
$
|
5,093
|
|
$
|
395,119
|
|
|
$
|
366,749
|
|
$
|
11,227
|
|
$
|
377,976
|
|
Secured Installment
|
|
81,823
|
|
—
|
|
81,823
|
|
|
81,195
|
|
—
|
|
81,195
|
|
||||||
Open-End
|
|
104,516
|
|
69,445
|
|
173,961
|
|
|
76,649
|
|
18,086
|
|
94,735
|
|
||||||
Single-Pay
|
|
82,733
|
|
58,872
|
|
141,605
|
|
|
78,835
|
|
90,461
|
|
169,296
|
|
||||||
Ancillary
|
|
14,136
|
|
32,859
|
|
46,995
|
|
|
14,565
|
|
19,727
|
|
34,292
|
|
||||||
Total revenue
|
|
$
|
673,234
|
|
$
|
166,269
|
|
$
|
839,503
|
|
|
$
|
617,993
|
|
$
|
139,501
|
|
$
|
757,494
|
|
|
2019
|
|
2018
|
|||||||||||||
(dollars in thousands, unaudited)
|
Third Quarter
|
Second Quarter
|
First
Quarter |
|
Fourth
Quarter |
Third
Quarter |
||||||||||
Secured Installment loans:
|
|
|
|
|
|
|
||||||||||
Revenue
|
$
|
28,270
|
|
$
|
26,076
|
|
$
|
27,477
|
|
|
$
|
29,482
|
|
$
|
28,562
|
|
Provision for losses
|
8,819
|
|
7,821
|
|
7,080
|
|
|
12,035
|
|
10,188
|
|
|||||
Net revenue
|
$
|
19,451
|
|
$
|
18,255
|
|
$
|
20,397
|
|
|
$
|
17,447
|
|
$
|
18,374
|
|
Net charge-offs
|
$
|
8,455
|
|
$
|
7,630
|
|
$
|
9,822
|
|
|
$
|
11,132
|
|
$
|
9,285
|
|
Secured Installment gross combined loan balances:
|
|
|
|
|
|
|
||||||||||
Secured Installment gross combined loans receivable (1)(2)
|
$
|
92,478
|
|
$
|
87,718
|
|
$
|
83,087
|
|
|
$
|
95,922
|
|
$
|
94,194
|
|
Average Secured Installment gross combined loans receivable (3)
|
$
|
90,098
|
|
$
|
85,403
|
|
$
|
89,505
|
|
|
$
|
95,058
|
|
$
|
90,814
|
|
Secured Installment Allowance for loan losses and CSO liability for losses (2)
|
$
|
10,431
|
|
$
|
10,067
|
|
$
|
9,874
|
|
|
$
|
12,616
|
|
$
|
11,714
|
|
Secured Installment Allowance for loan losses and CSO liability for losses as a percentage of Secured Installment gross combined loans receivable
|
11.3
|
%
|
11.5
|
%
|
11.9
|
%
|
|
13.2
|
%
|
12.4
|
%
|
|||||
Secured Installment past-due balances:
|
|
|
|
|
|
|
||||||||||
Secured Installment past-due gross loans receivable and gross loans guaranteed by the Company
|
$
|
17,645
|
|
$
|
14,570
|
|
$
|
13,866
|
|
|
$
|
17,835
|
|
$
|
17,754
|
|
Past-due Secured Installment gross loans receivable and gross loans guaranteed by the Company -- percentage (1)
|
19.1
|
%
|
16.6
|
%
|
16.7
|
%
|
|
18.6
|
%
|
18.8
|
%
|
|||||
Secured Installment other information:
|
|
|
|
|
|
|
||||||||||
Originations (4)
|
$
|
45,990
|
|
$
|
49,051
|
|
$
|
33,490
|
|
|
$
|
49,217
|
|
$
|
51,742
|
|
Secured Installment ratios:
|
|
|
|
|
|
|
||||||||||
Provision as a percentage of gross combined loans receivable
|
9.5
|
%
|
8.9
|
%
|
8.5
|
%
|
|
12.5
|
%
|
10.8
|
%
|
|||||
(1) Non-GAAP measure. For a description of each non-GAAP metric, see "Non-GAAP Financial Measures."
|
||||||||||||||||
(2) Allowance for loan losses is reported as a contra-asset reducing gross loans receivable while the CSO liability for losses is reported as a liability on the Condensed Consolidated Balance Sheets.
|
||||||||||||||||
(3) Average gross loans receivable calculated as beginning of quarter and end of quarter gross loans receivable.
|
||||||||||||||||
(4) Includes loans originated by third-party lenders through CSO programs, which are not included in the Condensed Consolidated Financial Statements.
|
•
|
Gross combined loans receivable: balances as of September 30, 2019 include $46.1 million of Open-End loans that are up to 90 days past-due with related accrued interest, while such balances for periods prior to March 31, 2019 do not include any past-due loans.
|
•
|
Revenues: for the three and nine months ended September 30, 2019, gross revenues include interest earned on past-due loan balances of approximately $15 million and $35 million, respectively, while revenues in prior-year periods do not include comparable amounts.
|
•
|
Provision for Losses: prospectively from January 1, 2019, past-due, unpaid balances plus related accrued interest charge-off on day 91. Provision expense is affected by NCOs (total charge-offs less total recoveries) plus changes to the Allowance for loan losses. Because NCOs prospectively include unpaid principal and up to 90 days of related accrued interest, NCO amounts and rates are higher and the Open-End Allowance for loan losses as a percentage of Open-End gross loans receivable is higher. The Open-End Allowance for loan losses as a percentage of Open-End gross loans receivable increased to 17.2% at September 30, 2019, compared to 9.8% in the comparable prior-year period.
|
|
As of
|
||||||||||||||
|
September 30, 2019
|
June 30, 2019
|
March 31, 2019
|
December 31, 2018
|
September 30, 2018
|
||||||||||
Company Owned gross loans receivable
|
$
|
657.6
|
|
$
|
609.6
|
|
$
|
553.2
|
|
$
|
571.5
|
|
$
|
537.8
|
|
Gross loans receivable Guaranteed by the Company
|
73.1
|
|
67.3
|
|
61.9
|
|
80.4
|
|
78.8
|
|
|||||
Gross combined loans receivable (1)
|
$
|
730.7
|
|
$
|
676.9
|
|
$
|
615.1
|
|
$
|
651.9
|
|
$
|
616.6
|
|
(1) See "Non-GAAP Financial Measures" below for definition and additional information.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||
2019
|
2018
|
Change $
|
Change %
|
|
2019
|
2018
|
Change $
|
Change %
|
|||||||||||||||
Revenue
|
$
|
297,264
|
|
$
|
269,482
|
|
$
|
27,782
|
|
10.3
|
%
|
|
$
|
839,503
|
|
$
|
757,494
|
|
$
|
82,009
|
|
10.8
|
%
|
Provision for losses
|
123,867
|
|
127,692
|
|
(3,825
|
)
|
(3.0
|
)%
|
|
338,262
|
|
290,922
|
|
47,340
|
|
16.3
|
%
|
||||||
Net revenue
|
173,397
|
|
141,790
|
|
31,607
|
|
22.3
|
%
|
|
501,241
|
|
466,572
|
|
34,669
|
|
7.4
|
%
|
||||||
Advertising costs
|
16,424
|
|
21,349
|
|
(4,925
|
)
|
(23.1
|
)%
|
|
36,990
|
|
44,347
|
|
(7,357
|
)
|
(16.6
|
)%
|
||||||
Non-advertising costs of providing services
|
60,334
|
|
59,847
|
|
487
|
|
0.8
|
%
|
|
180,934
|
|
178,437
|
|
2,497
|
|
1.4
|
%
|
||||||
Total cost of providing services
|
76,758
|
|
81,196
|
|
(4,438
|
)
|
(5.5
|
)%
|
|
217,924
|
|
222,784
|
|
(4,860
|
)
|
(2.2
|
)%
|
||||||
Gross margin
|
96,639
|
|
60,594
|
|
36,045
|
|
59.5
|
%
|
|
283,317
|
|
243,788
|
|
39,529
|
|
16.2
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating expense
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Corporate, district and other expenses
|
38,665
|
|
27,495
|
|
11,170
|
|
40.6
|
%
|
|
123,043
|
|
95,904
|
|
27,139
|
|
28.3
|
%
|
||||||
Interest expense
|
17,364
|
|
23,403
|
|
(6,039
|
)
|
(25.8
|
)%
|
|
52,077
|
|
66,229
|
|
(14,152
|
)
|
(21.4
|
)%
|
||||||
Loss on extinguishment of debt
|
—
|
|
69,200
|
|
(69,200
|
)
|
#
|
|
|
—
|
|
80,883
|
|
(80,883
|
)
|
#
|
|
||||||
Loss from equity method investment
|
1,384
|
|
—
|
|
1,384
|
|
#
|
|
|
5,132
|
|
—
|
|
5,132
|
|
#
|
|
||||||
Total operating expense
|
57,413
|
|
120,098
|
|
(62,685
|
)
|
(52.2
|
)%
|
|
180,252
|
|
243,016
|
|
(62,764
|
)
|
(25.8
|
)%
|
||||||
Net income (loss) from continuing operations before income taxes
|
39,226
|
|
(59,504
|
)
|
98,730
|
|
#
|
|
|
103,065
|
|
772
|
|
102,293
|
|
#
|
|
||||||
Provision (benefit) for income taxes
|
11,239
|
|
(16,914
|
)
|
28,153
|
|
#
|
|
|
28,738
|
|
(269
|
)
|
29,007
|
|
#
|
|
||||||
Net income (loss) from continuing operations
|
27,987
|
|
(42,590
|
)
|
70,577
|
|
#
|
|
|
74,327
|
|
1,041
|
|
73,286
|
|
#
|
|
||||||
Net (loss) income from discontinued operations, net of tax
|
(598
|
)
|
(4,432
|
)
|
3,834
|
|
(86.5
|
)%
|
|
6,943
|
|
(8,796
|
)
|
15,739
|
|
#
|
|
||||||
Net income (loss)
|
$
|
27,389
|
|
$
|
(47,022
|
)
|
$
|
74,411
|
|
#
|
|
|
$
|
81,270
|
|
$
|
(7,755
|
)
|
$
|
89,025
|
|
#
|
|
# - Variance greater than 100% or not meaningful
|
U.S. Segment Results
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||
|
2019
|
2018
|
Change $
|
Change %
|
|
2019
|
2018
|
Change $
|
Change %
|
||||||||||||||
Revenue
|
$
|
237,069
|
|
$
|
223,273
|
|
$
|
13,796
|
|
6.2
|
%
|
|
$
|
673,234
|
|
$
|
617,992
|
|
$
|
55,242
|
|
8.9
|
%
|
Provision for losses
|
102,997
|
|
103,256
|
|
(259
|
)
|
(0.3
|
)%
|
|
280,529
|
|
239,576
|
|
40,953
|
|
17.1
|
%
|
||||||
Net revenue
|
134,072
|
|
120,017
|
|
14,055
|
|
11.7
|
%
|
|
392,705
|
|
378,416
|
|
14,289
|
|
3.8
|
%
|
||||||
Advertising costs
|
14,186
|
|
17,632
|
|
(3,446
|
)
|
(19.5
|
)%
|
|
31,719
|
|
35,200
|
|
(3,481
|
)
|
(9.9
|
)%
|
||||||
Non-advertising costs of providing services
|
42,636
|
|
42,280
|
|
356
|
|
0.8
|
%
|
|
128,866
|
|
127,719
|
|
1,147
|
|
0.9
|
%
|
||||||
Total cost of providing services
|
56,822
|
|
59,912
|
|
(3,090
|
)
|
(5.2
|
)%
|
|
160,585
|
|
162,919
|
|
(2,334
|
)
|
(1.4
|
)%
|
||||||
Gross margin
|
77,250
|
|
60,105
|
|
17,145
|
|
28.5
|
%
|
|
232,120
|
|
215,497
|
|
16,623
|
|
7.7
|
%
|
||||||
Corporate, district and other expenses
|
32,897
|
|
22,360
|
|
10,537
|
|
47.1
|
%
|
|
106,426
|
|
81,113
|
|
25,313
|
|
31.2
|
%
|
||||||
Interest expense
|
14,877
|
|
22,169
|
|
(7,292
|
)
|
(32.9
|
)%
|
|
44,246
|
|
64,931
|
|
(20,685
|
)
|
(31.9
|
)%
|
||||||
Loss on extinguishment of debt
|
—
|
|
69,200
|
|
(69,200
|
)
|
#
|
|
|
—
|
|
80,883
|
|
(80,883
|
)
|
#
|
|
||||||
Loss from equity method investment
|
1,384
|
|
—
|
|
1,384
|
|
#
|
|
|
5,132
|
|
—
|
|
5,132
|
|
#
|
|
||||||
Total operating expense
|
49,158
|
|
113,729
|
|
(64,571
|
)
|
(56.8
|
)%
|
|
155,804
|
|
226,927
|
|
(71,123
|
)
|
(31.3
|
)%
|
||||||
Segment operating income (loss)
|
28,092
|
|
(53,624
|
)
|
81,716
|
|
#
|
|
|
76,316
|
|
(11,430
|
)
|
87,746
|
|
#
|
|
||||||
Interest expense
|
14,877
|
|
22,169
|
|
(7,292
|
)
|
(32.9
|
)%
|
|
44,246
|
|
64,931
|
|
(20,685
|
)
|
(31.9
|
)%
|
||||||
Depreciation and amortization
|
3,390
|
|
3,536
|
|
(146
|
)
|
(4.1
|
)%
|
|
10,553
|
|
10,322
|
|
231
|
|
2.2
|
%
|
||||||
EBITDA
|
46,359
|
|
(27,919
|
)
|
74,278
|
|
#
|
|
|
131,115
|
|
63,823
|
|
67,292
|
|
#
|
|
||||||
Loss on extinguishment of debt
|
—
|
|
69,200
|
|
(69,200
|
)
|
|
|
—
|
|
80,883
|
|
(80,883
|
)
|
|
||||||||
Restructuring costs
|
—
|
|
—
|
|
—
|
|
|
|
1,617
|
|
—
|
|
1,617
|
|
|
||||||||
Legal and related costs
|
870
|
|
(1,297
|
)
|
2,167
|
|
|
|
870
|
|
(1,297
|
)
|
2,167
|
|
|
||||||||
Other adjustments
|
42
|
|
(99
|
)
|
141
|
|
|
|
(206
|
)
|
(224
|
)
|
18
|
|
|
||||||||
U.K. related costs
|
348
|
|
—
|
|
348
|
|
|
|
8,844
|
|
—
|
|
8,844
|
|
|
||||||||
Share-based compensation
|
2,771
|
|
2,089
|
|
682
|
|
|
|
7,587
|
|
6,112
|
|
1,475
|
|
|
||||||||
Loss from equity method investment
|
1,384
|
|
—
|
|
1,384
|
|
|
|
5,132
|
|
—
|
|
5,132
|
|
|
||||||||
Adjusted EBITDA
|
$
|
51,774
|
|
$
|
41,974
|
|
$
|
9,800
|
|
23.3
|
%
|
|
$
|
154,959
|
|
$
|
149,297
|
|
$
|
5,662
|
|
3.8
|
%
|
# - Variance greater than 100% or not meaningful.
|
|
|
|
|
|
•
|
Adjusted Net Income and Adjusted Earnings Per Share, or the Adjusted Earnings Measures (net income from continuing operations plus or minus gain (loss) on extinguishment of debt, restructuring and other costs, certain legal and related costs, loss from equity method investment, goodwill and intangible asset impairments, certain costs related to the disposition of U.K., 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 Condensed Consolidated Financial Statements).
|
•
|
they do not include cash expenditures or future requirements for capital expenditures or contractual commitments;
|
•
|
they do not include changes in, or cash requirements for, working capital needs;
|
•
|
they do not include the interest expense, or the cash requirements necessary to service interest or principal payments on debt;
|
•
|
depreciation and amortization are non-cash expense items reported in the statements of cash flows; and
|
•
|
other companies in our industry may calculate these measures differently, limiting their usefulness as comparative measures.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|||||||||||||||||||
|
2019
|
2018
|
Change $
|
Change %
|
|
2019
|
2018
|
Change $
|
Change %
|
|||||||||||||
Net income (loss) from continuing operations
|
$
|
27,987
|
|
$
|
(42,590
|
)
|
$
|
70,577
|
|
#
|
|
$
|
74,327
|
|
$
|
1,041
|
|
$
|
73,286
|
|
#
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loss on extinguishment of debt (1)
|
—
|
|
72,165
|
|
|
|
|
—
|
|
83,848
|
|
|
|
|
||||||||
Restructuring costs (2)
|
—
|
|
—
|
|
|
|
|
1,752
|
|
—
|
|
|
|
|
||||||||
Legal and related costs (3)
|
870
|
|
(1,178
|
)
|
|
|
|
870
|
|
(1,178
|
)
|
|
|
|
||||||||
U.K. related costs (4)
|
348
|
|
—
|
|
|
|
|
8,844
|
|
—
|
|
|
|
|
||||||||
Loss from equity method investment (5)
|
1,384
|
|
—
|
|
|
|
|
5,132
|
|
—
|
|
|
|
|
||||||||
Share-based compensation (6)
|
2,771
|
|
2,089
|
|
|
|
|
7,587
|
|
6,112
|
|
|
|
|
||||||||
Intangible asset amortization
|
751
|
|
714
|
|
|
|
|
2,308
|
|
2,017
|
|
|
|
|
||||||||
Impact of tax law changes (7)
|
—
|
|
(600
|
)
|
|
|
|
—
|
|
1,200
|
|
|
|
|
||||||||
Cumulative tax effect of adjustments
|
(1,232
|
)
|
(19,185
|
)
|
|
|
|
(5,554
|
)
|
(23,579
|
)
|
|
|
|
||||||||
Adjusted Net Income
|
$
|
32,879
|
|
$
|
11,415
|
|
$
|
21,464
|
|
#
|
|
$
|
95,266
|
|
$
|
69,461
|
|
$
|
25,805
|
|
37.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss) from continuing operations
|
$
|
27,987
|
|
$
|
(42,590
|
)
|
|
|
|
$
|
74,327
|
|
$
|
1,041
|
|
|
|
|
||||
Diluted Weighted Average Shares Outstanding
|
46,010
|
|
45,853
|
|
|
|
|
46,887
|
|
48,061
|
|
|
|
|
||||||||
Adjusted Diluted Average Shares Outstanding
|
46,010
|
|
48,352
|
|
|
|
|
46,887
|
|
48,061
|
|
|
|
|
||||||||
Diluted Earnings per Share from continuing operations
|
$
|
0.61
|
|
$
|
(0.93
|
)
|
$
|
1.54
|
|
#
|
|
$
|
1.59
|
|
$
|
0.03
|
|
$
|
1.56
|
|
#
|
|
Per Share impact of adjustments to Net Income
|
0.10
|
|
1.17
|
|
|
|
|
0.44
|
|
1.42
|
|
|
|
|
||||||||
Adjusted Diluted Earnings per Share
|
$
|
0.71
|
|
$
|
0.24
|
|
$
|
0.47
|
|
#
|
|
$
|
2.03
|
|
$
|
1.45
|
|
$
|
0.58
|
|
40.0
|
%
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||
|
2019
|
2018
|
Change $
|
Change %
|
|
2019
|
2018
|
Change $
|
Change %
|
||||||||||||||
Net income (loss) from continuing operations
|
$
|
27,987
|
|
$
|
(42,590
|
)
|
$
|
70,577
|
|
#
|
|
|
$
|
74,327
|
|
$
|
1,041
|
|
$
|
73,286
|
|
#
|
|
Provision for income taxes
|
11,239
|
|
(16,914
|
)
|
28,153
|
|
#
|
|
|
28,738
|
|
(269
|
)
|
29,007
|
|
#
|
|
||||||
Interest expense
|
17,364
|
|
23,403
|
|
(6,039
|
)
|
(25.8
|
)%
|
|
52,077
|
|
66,229
|
|
(14,152
|
)
|
(21.4
|
)%
|
||||||
Depreciation and amortization
|
4,609
|
|
4,623
|
|
(14
|
)
|
(0.3
|
)%
|
|
14,180
|
|
13,628
|
|
552
|
|
4.1
|
%
|
||||||
EBITDA
|
61,199
|
|
(31,478
|
)
|
92,677
|
|
#
|
|
|
169,322
|
|
80,629
|
|
88,693
|
|
#
|
|
||||||
Loss on extinguishment of debt (1)
|
—
|
|
69,200
|
|
|
|
|
|
—
|
|
80,883
|
|
|
|
|
||||||||
Restructuring costs (2)
|
—
|
|
—
|
|
|
|
|
|
1,752
|
|
—
|
|
|
|
|
||||||||
Legal and related costs (3)
|
870
|
|
(1,178
|
)
|
|
|
|
|
870
|
|
(1,178
|
)
|
|
|
|
||||||||
U.K. related costs (4)
|
348
|
|
—
|
|
|
|
|
|
8,844
|
|
—
|
|
|
|
|
||||||||
Loss from equity method investment (5)
|
1,384
|
|
—
|
|
|
|
|
|
5,132
|
|
—
|
|
|
|
|
||||||||
Share-based compensation (6)
|
2,771
|
|
2,089
|
|
|
|
|
|
7,587
|
|
6,112
|
|
|
|
|
||||||||
Other adjustments (8)
|
483
|
|
(49
|
)
|
|
|
|
|
91
|
|
(1
|
)
|
|
|
|
||||||||
Adjusted EBITDA
|
$
|
67,055
|
|
$
|
38,584
|
|
$
|
28,471
|
|
73.8
|
%
|
|
$
|
193,598
|
|
$
|
166,445
|
|
$
|
27,153
|
|
16.3
|
%
|
Adjusted EBITDA Margin
|
22.6
|
%
|
14.3
|
%
|
|
|
|
23.1
|
%
|
22.0
|
%
|
|
|
(1)
|
For the nine months ended September 30, 2018, the $80.9 million of loss on extinguishment of debt is comprised of (i) $11.7 million incurred in the first quarter of 2018 for the redemption of $77.5 million of the CURO Financial Technologies Corp.'s ("CFTC") 12.00% Senior Secured Notes due 2022 and (ii) $69.2 million incurred in the third quarter of 2018 for the redemption of the remaining $525.7 million of these notes. The $69.2 million of third quarter loss on extinguishment of debt is comprised of $54.0 million make whole premium and $15.2 million of deferred financing costs, net of premium/discounts. An additional $3.0 million is included in related costs for the three and nine months ended September 30, 2018 for duplicative interest paid through September 30, 2018 prior to repayment of the remaining 12.00% Senior Secured Notes and the Non-Recourse U.S. SPV Facility.
|
(2)
|
Restructuring costs of $1.8 million for the nine months ended September 30, 2019 were due to eliminating 121 positions in North America. The store employee reductions help better align store staffing with in-store customer traffic and volume patterns, as more of our growth comes from online channels and as store customers require less time in stores as they conduct more of the follow-up activities online. The elimination of certain corporate positions relate to efficiency initiatives and has allowed the Company to reallocate investment to strategic growth activities.
|
(3)
|
Legal and related costs for the three and nine months ended September 30, 2019 include costs related to certain securities litigation and related matters of $0.6 million and legal and advisory costs of $0.3 million related to the repurchase of shares from FFL. Legal and related costs for the three and nine months ended September 30, 2018 includes (i) a $1.8 million reduction of the liability related to our offer to reimburse certain bank overdraft or non-sufficient funds fees because of possible borrower confusion about certain electronic payments we initiated on their loans and (ii) settlement of certain matters in California and Canada. For more information, see Note 18 - "Contingent Liabilities" of the Notes to Consolidated Financial Statements included in our Form 10-K filed with the SEC on March 18, 2019.
|
(4)
|
U.K. related costs of $8.8 million for the nine months ended September 30, 2019 relate to placing the U.K. subsidiaries into administration on February 25, 2019, which included $7.6 million to obtain consent from the holders of the 8.25% Senior Secured Notes to deconsolidate the U.K. Segment and $1.2 million for other costs.
|
(5)
|
The Loss from equity method investment for the nine months ended September 30, 2019 of $5.1 million includes (i) our share of the estimated GAAP net loss of Zibby and (ii) a $3.7 million loss recognized during the second quarter of 2019. From April through July of 2019, Zibby completed an equity raising round at a value per share less than the value per share raised in prior raises. As of September 30, 2019, we owned 42.3% of the outstanding shares of Zibby on a fully diluted basis.
|
(6)
|
We approved the adoption of share-based compensation plans during 2010 and 2017 for key members of senior management. The estimated fair value of share-based awards is recognized as non-cash compensation expense on a straight-line basis over the vesting period.
|
(7)
|
As a result of the Tax Cuts and Jobs Act of 2017 ("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 Global Intangible Low-Taxed Income tax starting in 2018 and we estimated and provided tax expense of $0.6 million in the first quarter of 2018.We revised this expense in the third quarter of 2018 based on changes in our geographic mix of income.
|
(8)
|
Other adjustments include deferred rent and the intercompany foreign exchange impact. Deferred rent represents the non-cash component of rent expense.
|
|
Average Exchange Rates
|
|
|
|||||||||
|
Three Months Ended September 30,
|
|
Change
|
|||||||||
|
2019
|
2018
|
|
$
|
%
|
|||||||
Canadian Dollar
|
$
|
0.7576
|
|
$
|
0.7652
|
|
|
|
($0.0076
|
)
|
(1.0
|
)%
|
|
Average Exchange Rates
|
|
|
|||||||||
|
Nine Months Ended September 30,
|
|
Change
|
|||||||||
|
2019
|
2018
|
|
$
|
%
|
|||||||
Canadian Dollar
|
$
|
0.7526
|
|
$
|
0.7771
|
|
|
|
($0.0245
|
)
|
(3.2
|
)%
|
|
|
Three Months Ended September 30,
|
|
Change
|
|||||||||||
|
|
2019
|
|
2018
|
|
$
|
|
%
|
|||||||
Canada – constant currency basis:
|
|
|
|
|
|
|
|
|
|||||||
Revenues
|
|
$
|
60,805
|
|
|
$
|
46,209
|
|
|
$
|
14,596
|
|
|
31.6
|
%
|
Gross Margin
|
|
19,597
|
|
|
489
|
|
|
19,108
|
|
|
#
|
|
|||
# - variance greater than 100% or not meaningful
|
|
|
Nine Months Ended September 30,
|
|
Change
|
||||||||||||
|
|
2019
|
|
2018
|
|
$
|
|
%
|
|
|||||||
Canada – constant currency basis:
|
|
|
|
|
|
|
|
|
|
|||||||
Revenues
|
|
$
|
171,664
|
|
|
$
|
139,502
|
|
|
$
|
32,162
|
|
|
23.1
|
%
|
|
Gross Margin
|
|
52,861
|
|
|
28,291
|
|
|
24,570
|
|
|
86.8
|
%
|
|
|
September 30,
|
December 31,
|
||||
|
2019
|
2018
|
||||
8.25% Senior Secured Notes (due 2025)
|
$
|
677,924
|
|
$
|
676,661
|
|
Non-Recourse Canada SPV Facility
|
102,483
|
|
107,479
|
|
||
Senior Revolver
|
25,000
|
|
20,000
|
|
||
Debt
|
$
|
805,407
|
|
$
|
804,140
|
|
|
|
Nine Months Ended September 30,
|
||||||
|
|
2019
|
|
2018
|
||||
Net cash provided by continuing operating activities
|
|
$
|
464,293
|
|
|
$
|
357,079
|
|
Net cash used in continuing investing activities
|
|
(391,188
|
)
|
|
(421,423
|
)
|
||
Net cash (used in) provided by continuing financing activities
|
|
(58,488
|
)
|
|
90,449
|
|
•
|
If two consecutive attempts to collect money from a particular account of the borrower, made through any channel (e.g., paper check, ACH, prepaid card) are returned for insufficient funds, the lender cannot make any further attempts to collect from such account unless the borrower has provided a new and specific authorization for additional payment transfers. The 2017 Final Rule contains specific requirements and conditions for the authorization. While the CFPB has explained that these provisions are designed to limit bank penalty fees to which consumers may be subject, and while banks do not charge penalty fees on debit card authorization requests, the 2017 Final Rule nevertheless treats card authorization requests as payment attempts subject to these limitations.
|
•
|
A lender generally must give the consumer at least three business days advance notice before attempting to collect payment by accessing a consumer’s checking, savings, or prepaid account. The notice must include information such as the date of the payment request, payment channel and payment amount (broken down by principal, interest, fees, and other charges), as well as additional information for “unusual attempts,” such as when the payment is for a different amount than the regular payment, initiated on a date other than the date of a regularly scheduled payment or initiated in a different channel that the immediately preceding payment attempt. A lender must also provide the borrower with a "consumer rights notice" in a prescribed form after two consecutive failed payment attempts.
|
•
|
the amount we may charge in interest rates and fees;
|
•
|
the terms of our loans (such as maximum and minimum durations), repayment requirements and limitations, number and frequency of loans, maximum loan amounts, renewals and extensions, required repayment plans and reporting and use of state-wide databases;
|
•
|
underwriting requirements;
|
•
|
collection and servicing activity, including initiation of payments from consumer accounts;
|
•
|
the establishment and operation of CSOs or CABs;
|
•
|
licensing, reporting and document retention;
|
•
|
unfair, deceptive and abusive acts and practices;
|
•
|
discrimination;
|
•
|
disclosures, notices, advertising and marketing;
|
•
|
loans to members of the military and their dependents;
|
•
|
requirements governing electronic payments, transactions, signatures and disclosures;
|
•
|
check cashing;
|
•
|
money transmission;
|
•
|
currency and suspicious activity recording and reporting;
|
•
|
privacy and use of personally identifiable information and consumer data, including credit reports;
|
•
|
anti-money laundering and counter-terrorist financing requirements, including currency and suspicious transaction recording and reporting;
|
•
|
posting of fees and charges; and
|
•
|
repossession practices in certain jurisdictions where we operate as a title lender, including requirements regarding notices and prompt remittance of excess proceeds for the sale of repossessed automobiles.
|
Exhibit no.
|
|
Exhibit Description
|
3.1
|
|
|
3.2
|
|
|
10.1
|
|
|
10.2
|
|
|
10.3
|
|
|
10.4
|
|
|
10.5
|
|
|
10.6
|
|
|
31.1
|
|
|
31.2
|
|
|
32.1
|
|
|
101
|
|
The following unaudited financial information from the Company's Quarterly Report on Form 10-Q for the period ended September 30, 2019, filed with the SEC on November 4, 2019, formatted in Extensible Business Reporting Language (“XBRL”) includes: (i) Condensed Consolidated Balance Sheets at September 30, 2019 and December 31, 2018, (ii) Condensed Consolidated Statements of Operations for the quarter ended September 30, 2019 and 2018, (iii) Condensed Consolidated Statements of Comprehensive Income for the quarter ended September 30, 2019 and 2018, (iv) Condensed Consolidated Statements of Cash Flows for the quarter ended September 30, 2019 and 2018, and (v) Notes to Condensed Consolidated Financial Statements*
|
|
By:
|
/s/ Roger Dean
|
|
|
|
Roger Dean
|
|
|
|
Executive Vice-President and Chief Financial Officer
|
1 Year CURO Chart |
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