CHICAGO,
Feb. 3,
2015 /PRNewswire/ -- Enova International, Inc.
(NYSE: ENVA), a leading online lending company, today
announced financial results for the quarter and year
ended December 31,
2014.
"We are pleased to report our first quarter as a
stand-alone public company," said David
Fisher, CEO of Enova. "Our fourth quarter and full year
results represented record profitability for both periods, led by
strong growth in our U.S. business. These results are a significant
accomplishment and reflect the strength of our flexible and
scalable technology and advanced analytics platform, particularly
considering that we launched four new businesses during the year
and managed through substantial regulatory changes in the U.K.
market."
Fourth Quarter 2014 Summary
- Total revenue of $194.7 million in the fourth
quarter of 2014 declined 6.7% from $208.8 million in the fourth
quarter of 2013 as a 17.3% increase in U.S. revenue was more than
offset by a 34.2% decrease in international revenue, primarily a
result of regulatory changes in the U.K.
- Gross profit margin of 68.9% in the fourth quarter of 2014 rose
over 10 percentage points from the fourth quarter of 2013, as
a result of changes in underwriting in the U.K. driven by new
regulations, as well as continued enhancements to our underwriting
models.
- The substantial increase in gross profit combined with a
decrease in marketing expenses drove a 25.9% increase in adjusted
EBITDA, a non-GAAP measure, to $54.4
million in the fourth quarter
of 2014.
- Net income increased 14.1% to $22.5
million, or $0.68 per diluted
share, in the fourth quarter of 2014 from $19.7 million, or $0.60 per diluted share, in the fourth quarter of
2013.
Full Year 2014 Summary
- Total revenue of $809.8
million in 2014 increased 5.8% from
$765.3 million in
2013, driven by a 20.0% increase in U.S. revenue, which was
partially offset by a 9.4% decline in international revenue.
- Gross profit margin of 67.1% in 2014 rose from 58.8% in
2013.
- Adjusted EBITDA increased 44.1% to $233.7 million in 2014 from
$162.2 million in 2013.
- Net income increased 43.1% to $111.7
million, or $3.38 per diluted
share, in 2014 from $78.0 million, or
$2.36 per diluted share, in
2013.
- Adjusted earnings, a non-GAAP measure, increased 37.5% to
$112.1 million, or $3.40 per diluted share, in 2014 from
$81.5 million, or $2.47 per diluted share, in 2013.
"Our strong financial performance was driven by the
success of our online business model, focused diversification
efforts and superior execution which enabled us to significantly
increase profitability during a time when regulatory changes
provided a headwind to top-line growth," said Robert Clifton, CFO of Enova.
Outlook
Commenting on the outlook for 2015, Fisher stated "We
anticipate continued growth in our U.S. business, driven by the
introduction and expansion of new and recently launched loan
products. We also expect the U.K. market to stabilize, and we plan
to continue to innovate and invest in new initiatives, which will
drive our future results."
For the first quarter 2015, Enova expects total revenue of
$165 million to $185 million and Adjusted EBITDA of $45 million to $60 million. For the full year
2015, Enova expects total revenue of $750
million to $830 million and Adjusted EBITDA of $180 million to $240 million.
For information regarding the non-GAAP financial measures
discussed in this release, please see "Non-GAAP Financial Measures"
and "Reconciliation of GAAP to Non-GAAP Financial Measures"
below.
Conference Call
Enova will host a conference call to discuss its results
at 4 p.m. CT / 5 p.m. ET today. The U.S.
dial-in number for the call is 1-877-870-4263 or 1-412-317-0790 for
non-US callers. Please ask to be joined to the Enova International
call. The live webcast of the conference call can be accessed
at the Enova Investor Relations website
at http://ir.enova.com, along with
the company's earnings press release and supplemental financial
information. A replay of the audio conference call will be
available until February 10, 2015 at 10:59 p.m.
CT / 11:59 p.m. ET, while an archived version of the
webcast will be available on the Enova Investor Relations website
for 90 days.
About Enova
Enova is a leading provider of online financial services to the
large and growing number of customers who use alternative financial
services because of their limited access to more traditional
consumer credit. As of December 31, 2014, Enova offered or
arranged loans in 35 states in the United
States and in five foreign countries:
- in the United States at
http://www.cashnetusa.com, http://www.netcredit.com and
http://www.headwaycapital.com,
- in the United Kingdom at
http://www.quickquid.co.uk, http://www.poundstopocket.co.uk
and http://www.onstride.co.uk,
- in Australia at
http://www.dollarsdirect.com.au,
- in Canada at
http://www.dollarsdirect.ca,
- in Brazil at
http://www.simplic.com.br and
- in China at
http://www.youxinyi.cn.
Enova recently launched pilot programs
in Brazil and China,
as well as a line of credit product to serve the needs of small
businesses in the United States. It uses its
proprietary technology, analytics and customer service capabilities
to quickly evaluate, underwrite and fund loans in order to offer
customers credit when and how they want it. Headquartered
in Chicago, Enova had more than
1,100 employees serving its online customers across the globe as
of December
31, 2014.
Cautionary Statement Concerning Forward Looking
Statements
This release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
about the business, financial condition and prospects of Enova.
These forward-looking statements give current expectations or
forecasts of future events and reflect the views and assumptions of
Enova's senior management with respect to the business, financial
condition and prospects of Enova as of the date of this release and
are not guarantees of future performance. The actual results of
Enova could differ materially from those indicated by such
forward-looking statements because of various risks and
uncertainties applicable to Enova's business, including, without
limitation, those risks and uncertainties indicated in Enova's
filings with the Securities and Exchange Commission ("SEC"),
especially the Registration Statement on Form S-1 (File No.
333-199733) filed with the SEC on December
4, 2014 (which has not yet been declared effective) and
Forms 8-K. These risks and uncertainties are beyond the ability of
Enova to control, and, in many cases, Enova cannot predict all of
the risks and uncertainties that could cause its actual results to
differ materially from those indicated by the forward-looking
statements. When used in this release, the words "believes,"
"estimates," "plans," "expects," "anticipates" and similar
expressions or variations as they relate to Enova or its management
are intended to identify forward-looking statements. Enova cautions
you not to put undue reliance on these statements. Enova disclaims
any intention or obligation to update or revise any forward-looking
statements after the date of this release.
Non-GAAP Financial Measures
In addition to the financial information prepared in
conformity with generally accepted accounting principles, or GAAP,
Enova provides historical non-GAAP financial information.
Management believes that presentation of non-GAAP financial
information is meaningful and useful in understanding the
activities and business metrics of Enova's operations. Management
believes that these non-GAAP financial measures reflect an
additional way of viewing aspects of Enova's business that, when
viewed with its GAAP results, provide a more complete understanding
of factors and trends affecting its business.
Management provides non-GAAP financial information for
informational purposes and to enhance understanding of Enova's GAAP
consolidated financial statements. Readers should consider the
information in addition to, but not instead of or superior to,
Enova's financial statements prepared in accordance with GAAP. This
non-GAAP financial information may be determined or calculated
differently by other companies, limiting the usefulness of those
measures for comparative purposes.
Combined Consumer Loans
Enova has provided combined consumer loans, which is a
non-GAAP measure. Enova also reports allowances and liabilities for
estimated losses on consumer loans individually and on a combined
basis, which are GAAP measures that are included in Enova's
financial statements. Management believes these measures provide
investors with important information needed to evaluate the
magnitude of potential cost of revenue and the opportunity for
revenue performance of the consumer loan portfolio on an aggregate
basis. Management believes that the comparison of the aggregate
amounts from period to period is more meaningful than comparing
only the residual amount on Enova's balance sheet since both
revenue and the cost of revenue for loans are impacted by the
aggregate amount of loans owned by Enova and those guaranteed by
Enova as reflected in its financial statements.
Adjusted Earnings and Adjusted Earnings Per
Share
In addition to reporting financial results in accordance
with GAAP, Enova has provided adjusted earnings and adjusted
earnings per share, or, collectively, the Adjusted Earnings
Measures, which are non-GAAP measures. Management believes that the
presentation of these measures provides investors with greater
transparency and facilitates comparison of operating results across
a broad spectrum of companies with varying capital structures,
compensation strategies, derivative instruments and amortization
methods, which provides a more complete understanding of Enova's
financial performance, competitive position and prospects for the
future. Management also believes that investors regularly rely on
non-GAAP financial measures, such as the Adjusted Earnings
Measures, to assess operating performance and that such measures
may highlight trends in Enova's business that may not otherwise be
apparent when relying on financial measures calculated in
accordance with GAAP. In addition, management believes that the
adjustments shown below are useful to investors in order to allow
them to compare Enova's financial results during the periods shown
without the effect of certain expense items.
Adjusted EBITDA
Adjusted EBITDA is a non-GAAP measure that Enova defines
as earnings excluding depreciation, amortization,
interest, foreign currency transaction gains or losses and taxes,
and Adjusted EBITDA margin is a non-GAAP measure that Enova defines
as Adjusted EBITDA as a percentage of total revenue. Management
believes Adjusted EBITDA and Adjusted EBITDA margin are used by
investors to analyze operating performance and evaluate Enova's
ability to incur and service debt and Enova's capacity for making
capital expenditures. Adjusted EBITDA and Adjusted EBITDA margin
are also useful to investors to help assess Enova's estimated
enterprise value. The computation of Adjusted EBITDA and Adjusted
EBITDA margin as presented below may differ from the computation of
similarly-titled measures provided by other companies.
ENOVA INTERNATIONAL, INC. AND
SUBSIDIARIES
|
CONSOLIDATED BALANCE SHEETS
|
(dollars in thousands, except share
data)
|
(Unaudited)
|
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
Assets
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
75,106
|
|
|
$
|
47,480
|
|
Consumer loans, net
|
|
|
323,611
|
|
|
|
303,467
|
|
Prepaid expenses and other assets
|
|
|
16,631
|
|
|
|
8,686
|
|
Deferred tax assets
|
|
|
24,813
|
|
|
|
30,914
|
|
Total current assets
|
|
|
440,161
|
|
|
|
390,547
|
|
Property and equipment, net
|
|
|
33,985
|
|
|
|
39,405
|
|
Goodwill
|
|
|
255,862
|
|
|
|
255,869
|
|
Intangible assets, net
|
|
|
39
|
|
|
|
45
|
|
Other assets
|
|
|
29,536
|
|
|
|
6,286
|
|
Total assets
|
|
$
|
759,583
|
|
|
$
|
692,152
|
|
Liabilities and
Stockholders'
Equity
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable and accrued
expenses
|
|
$
|
57,277
|
|
|
$
|
49,576
|
|
Income taxes currently payable
|
|
|
6,802
|
|
|
|
38
|
|
Total current liabilities
|
|
|
64,079
|
|
|
|
49,614
|
|
Deferred tax liabilities
|
|
|
47,339
|
|
|
|
45,306
|
|
Other liabilities
|
|
|
—
|
|
|
|
51
|
|
Long-term debt
|
|
|
494,181
|
|
|
|
424,133
|
|
Total liabilities
|
|
|
605,599
|
|
|
|
519,104
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
Common stock, $0.00001 par value, 250,000,000 shares
authorized, 33,000,000 shares issued and
outstanding
|
|
|
—
|
|
|
|
—
|
|
Preferred stock, $0.00001 par value, 25,000,000
shares authorized, no shares issued and
outstanding
|
|
|
—
|
|
|
|
—
|
|
Additional paid in capital
|
|
|
294
|
|
|
|
—
|
|
Retained earnings
|
|
|
156,861
|
|
|
|
169,947
|
|
Accumulated other comprehensive (loss)
income
|
|
|
(3,171)
|
|
|
|
3,101
|
|
Total stockholders' equity
|
|
|
153,984
|
|
|
|
173,048
|
|
Total liabilities and stockholders' equity
|
|
$
|
759,583
|
|
|
$
|
692,152
|
|
ENOVA INTERNATIONAL, INC. AND
SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF
INCOME
|
(dollars in thousands, except per share
data)
|
(Unaudited)
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Revenue
|
|
$
|
194,722
|
|
|
$
|
208,770
|
|
|
$
|
809,837
|
|
|
$
|
765,323
|
|
Cost of Revenue
|
|
|
60,592
|
|
|
|
86,505
|
|
|
|
266,787
|
|
|
|
315,052
|
|
Gross Profit
|
|
|
134,130
|
|
|
|
122,265
|
|
|
|
543,050
|
|
|
|
450,271
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing
|
|
|
35,163
|
|
|
|
40,744
|
|
|
|
127,862
|
|
|
|
135,336
|
|
Operations and technology
|
|
|
19,203
|
|
|
|
18,271
|
|
|
|
73,573
|
|
|
|
70,776
|
|
General and administrative
|
|
|
25,350
|
|
|
|
22,541
|
|
|
|
107,875
|
|
|
|
84,420
|
|
Depreciation and amortization
|
|
|
4,960
|
|
|
|
4,157
|
|
|
|
18,732
|
|
|
|
17,143
|
|
Total Expenses
|
|
|
84,676
|
|
|
|
85,713
|
|
|
|
328,042
|
|
|
|
307,675
|
|
Income from Operations
|
|
|
49,454
|
|
|
|
36,552
|
|
|
|
215,008
|
|
|
|
142,596
|
|
Interest expense, net
|
|
|
(13,273)
|
|
|
|
(5,050)
|
|
|
|
(38,474)
|
|
|
|
(19,788)
|
|
Foreign currency transaction gain
(loss)
|
|
|
520
|
|
|
|
(153)
|
|
|
|
(35)
|
|
|
|
(1,176)
|
|
Income before Income Taxes
|
|
|
36,701
|
|
|
|
31,349
|
|
|
|
176,499
|
|
|
|
121,632
|
|
Provision for income taxes
|
|
|
14,199
|
|
|
|
11,635
|
|
|
|
64,828
|
|
|
|
43,594
|
|
Net Income
|
|
$
|
22,502
|
|
|
$
|
19,714
|
|
|
$
|
111,671
|
|
|
$
|
78,038
|
|
Earnings Per Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.68
|
|
|
$
|
0.60
|
|
|
$
|
3.38
|
|
|
$
|
2.36
|
|
Diluted
|
|
$
|
0.68
|
|
|
$
|
0.60
|
|
|
$
|
3.38
|
|
|
$
|
2.36
|
|
Weighted average common shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
33,000
|
|
|
|
33,000
|
|
|
|
33,000
|
|
|
|
33,000
|
|
Diluted
|
|
|
33,031
|
|
|
|
33,000
|
|
|
|
33,008
|
|
|
|
33,000
|
|
ENOVA INTERNATIONAL, INC. AND
SUBSIDIARIES
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOW
|
(dollars in thousands)
|
(Unaudited)
|
|
|
|
Year Ended December 31,
|
|
|
|
2014
|
|
|
2013
|
|
Cash flows provided by operating
activities
|
|
$
|
422,067
|
|
|
$
|
438,298
|
|
Cash flows used in investing
activities
|
|
|
|
|
|
|
|
|
Consumer loans
|
|
|
(291,246)
|
|
|
|
(388,867)
|
|
Property and equipment additions
|
|
|
(13,284)
|
|
|
|
(14,872)
|
|
Investment in non-marketable
securities
|
|
|
(703)
|
|
|
|
—
|
|
Other investing activities
|
|
|
4
|
|
|
|
—
|
|
Total cash flows used in investing
activities
|
|
|
(305,229)
|
|
|
|
(403,739)
|
|
Cash flows used in financing
activities
|
|
|
(79,039)
|
|
|
|
(28,567)
|
|
Effect of exchange rates on cash
|
|
|
(10,173)
|
|
|
|
3,940
|
|
Net increase in cash and cash
equivalents
|
|
|
27,626
|
|
|
|
9,932
|
|
Cash and cash equivalents at beginning of
year
|
|
|
47,480
|
|
|
|
37,548
|
|
Cash and cash equivalents at end of
period
|
|
$
|
75,106
|
|
|
$
|
47,480
|
|
ENOVA INTERNATIONAL, INC. AND
SUBSIDIARIES
|
GEOGRAPHIC INFORMATION
|
(dollars in thousands)
|
|
The following tables present information on Enova's
domestic and international operations for the three months and
years ended December 31, 2014 and 2013.
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
$ Change
|
|
|
% Change
|
|
Domestic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
130,712
|
|
|
$
|
111,417
|
|
|
$
|
19,295
|
|
|
|
17.3
|
%
|
Cost of Revenue
|
|
|
48,906
|
|
|
|
43,953
|
|
|
|
4,953
|
|
|
|
11.3
|
%
|
Gross Profit
|
|
|
81,806
|
|
|
|
67,464
|
|
|
|
14,342
|
|
|
|
21.3
|
%
|
Gross Profit Margin
|
|
|
62.6
|
%
|
|
|
60.6
|
%
|
|
|
2.0
|
%
|
|
|
3.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
64,010
|
|
|
$
|
97,353
|
|
|
$
|
(33,343)
|
|
|
|
(34.2)%
|
|
Cost of Revenue
|
|
|
11,686
|
|
|
|
42,552
|
|
|
|
(30,866)
|
|
|
|
(72.5)%
|
|
Gross Profit
|
|
|
52,324
|
|
|
|
54,801
|
|
|
|
(2,477)
|
|
|
|
(4.5)%
|
|
Gross Profit Margin
|
|
|
81.7
|
%
|
|
|
56.3
|
%
|
|
|
25.4
|
%
|
|
|
45.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
194,722
|
|
|
$
|
208,770
|
|
|
$
|
(14,048)
|
|
|
|
(6.7)%
|
|
Cost of Revenue
|
|
|
60,592
|
|
|
|
86,505
|
|
|
|
(25,913)
|
|
|
|
(30.0)%
|
|
Gross Profit
|
|
|
134,130
|
|
|
|
122,265
|
|
|
|
11,865
|
|
|
|
9.7
|
%
|
Gross Profit Margin
|
|
|
68.9
|
%
|
|
|
58.6
|
%
|
|
|
10.3
|
%
|
|
|
17.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
$ Change
|
|
|
% Change
|
|
Domestic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
474,715
|
|
|
$
|
395,549
|
|
|
$
|
79,166
|
|
|
|
20.0
|
%
|
Cost of Revenue
|
|
|
171,798
|
|
|
|
157,344
|
|
|
|
14,454
|
|
|
|
9.2
|
%
|
Gross Profit
|
|
|
302,917
|
|
|
|
238,205
|
|
|
|
64,712
|
|
|
|
27.2
|
%
|
Gross Profit Margin
|
|
|
63.8
|
%
|
|
|
60.2
|
%
|
|
|
3.6
|
%
|
|
|
6.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
335,122
|
|
|
$
|
369,774
|
|
|
$
|
(34,652)
|
|
|
|
(9.4)%
|
|
Cost of Revenue
|
|
|
94,989
|
|
|
|
157,708
|
|
|
|
(62,719)
|
|
|
|
(39.8)%
|
|
Gross Profit
|
|
|
240,133
|
|
|
|
212,066
|
|
|
|
28,067
|
|
|
|
13.2
|
%
|
Gross Profit Margin
|
|
|
71.7
|
%
|
|
|
57.4
|
%
|
|
|
14.3
|
%
|
|
|
24.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
809,837
|
|
|
$
|
765,323
|
|
|
$
|
44,514
|
|
|
|
5.8
|
%
|
Cost of Revenue
|
|
|
266,787
|
|
|
|
315,052
|
|
|
|
(48,265)
|
|
|
|
(15.3)%
|
|
Gross Profit
|
|
|
543,050
|
|
|
|
450,271
|
|
|
|
92,779
|
|
|
|
20.6
|
%
|
Gross Profit Margin
|
|
|
67.1
|
%
|
|
|
58.8
|
%
|
|
|
8.3
|
%
|
|
|
14.1
|
%
|
ENOVA INTERNATIONAL, INC. AND
SUBSIDIARIES
|
CONSUMER LOAN FINANCIAL AND OPERATING
DATA
|
(dollars in thousands)
|
|
The following table shows consumer loans and related
loan loss activity, which is based on consumer loan balances, for
the three months ended December 31, 2014 and
2013.
|
|
Three Months Ended December 31
|
|
2014
|
|
|
2013
|
|
|
Change
|
|
Cost of revenue
|
|
$
|
60,592
|
|
|
$
|
86,505
|
|
|
$
|
(25,913)
|
|
Charge-offs (net of recoveries)
|
|
|
64,693
|
|
|
|
91,888
|
|
|
|
(27,195)
|
|
Average combined consumer loan balances,
gross:
|
|
|
|
|
|
|
|
|
|
|
|
|
Company owned(a)
|
|
|
372,832
|
|
|
|
363,678
|
|
|
|
9,154
|
|
Guaranteed by
Enova(a)(b)
|
|
|
34,483
|
|
|
|
36,369
|
|
|
|
(1,886)
|
|
Average combined consumer loan balances,
gross (a)(c)
|
|
$
|
407,315
|
|
|
$
|
400,047
|
|
|
$
|
7,268
|
|
Ending combined consumer loan balances,
gross:
|
|
|
|
|
|
|
|
|
|
|
|
|
Company owned
|
|
$
|
388,559
|
|
|
$
|
385,785
|
|
|
$
|
2,774
|
|
Guaranteed by Enova(b)
|
|
|
36,270
|
|
|
|
41,412
|
|
|
|
(5,142)
|
|
Ending combined consumer loan balances,
gross (c)
|
|
$
|
424,829
|
|
|
$
|
427,197
|
|
|
$
|
(2,368)
|
|
Ending allowance and liability for
losses
|
|
$
|
66,524
|
|
|
$
|
84,365
|
|
|
$
|
(17,841)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer loan ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue as a % of average combined consumer
loan balances, gross(a)(c)
|
|
|
14.9
|
%
|
|
|
21.6
|
%
|
|
|
(6.7)%
|
|
Charge-offs (net of recoveries) as a % of average
combined consumer loan balances, gross
(a)(c)
|
|
|
15.9
|
%
|
|
|
23.0
|
%
|
|
|
(7.1)%
|
|
Gross profit margin
|
|
|
68.9
|
%
|
|
|
58.6
|
%
|
|
|
10.3
|
%
|
Allowance and liability for losses as a % of combined
consumer loan balances, gross(c)(d)
|
|
|
15.7
|
%
|
|
|
19.7
|
%
|
|
|
(4.0)%
|
|
|
|
(a)
|
The average combined
consumer loan balances, gross, is the average of the month-end
balances during the period.
|
(b)
|
Represents loans
originated by third-party lenders through the credit services
organization (or CSO) programs, which are not included in Enova's
financial statements.
|
(c)
|
Non-GAAP measure. See
the above discussion for additional information regarding combined
consumer loans.
|
(d)
|
Allowance and
liability for losses as a percentage of combined consumer loan
balances, gross, is determined using period-end
balances.
|
ENOVA INTERNATIONAL, INC. AND
SUBSIDIARIES
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
|
(dollars in thousands, except per share
data)
|
|
Adjusted Earnings Measures
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Net Income
|
|
$
|
22,502
|
|
|
$
|
19,714
|
|
|
$
|
111,671
|
|
|
$
|
78,038
|
|
Adjustments (net of tax):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory Penalty (a)
|
|
|
—
|
|
|
|
2,500
|
|
|
|
—
|
|
|
|
2,500
|
|
Intangible asset amortization
|
|
|
5
|
|
|
|
17
|
|
|
|
28
|
|
|
|
88
|
|
Non-cash equity-based compensation
|
|
|
256
|
|
|
|
54
|
|
|
|
420
|
|
|
|
160
|
|
Foreign currency transaction (gain)
loss
|
|
|
(332)
|
|
|
|
94
|
|
|
|
22
|
|
|
|
755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
|
|
$
|
22,431
|
|
|
$
|
22,379
|
|
|
$
|
112,141
|
|
|
$
|
81,541
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
$
|
0.68
|
|
|
$
|
0.60
|
|
|
$
|
3.38
|
|
|
$
|
2.36
|
|
Adjusted earnings per share
|
|
$
|
0.68
|
|
|
$
|
0.68
|
|
|
$
|
3.40
|
|
|
$
|
2.47
|
|
|
|
(a)
|
On November 20,
2013, Cash America International, Inc., Enova's former parent
company, consented to the issuance of a Consent Order by the
Consumer Financial Protection Bureau, or the CFPB, pursuant to
which it agreed, without admitting or denying any of the facts or
conclusions made by the CFPB from its 2012 review of Cash America
and us, to pay a civil money penalty of $5 million, of which
we and Cash America agreed to allocate $2.5 million of this penalty
to us, or the Regulatory Penalty. For the three months and year
ended December 31, 2013, this item represents the amount paid
in connection with the Regulatory Penalty, which is nondeductible
for tax purposes.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Net Income
|
|
$
|
22,502
|
|
|
$
|
19,714
|
|
|
$
|
111,671
|
|
|
$
|
78,038
|
|
Depreciation and amortization
expenses
|
|
|
4,960
|
|
|
|
4,157
|
|
|
|
18,732
|
|
|
|
17,143
|
|
Interest expense, net
|
|
|
13,273
|
|
|
|
5,050
|
|
|
|
38,474
|
|
|
|
19,788
|
|
Foreign currency transaction (gain)
loss
|
|
|
(520)
|
|
|
|
153
|
|
|
|
35
|
|
|
|
1,176
|
|
Provision for income taxes
|
|
|
14,199
|
|
|
|
11,635
|
|
|
|
64,828
|
|
|
|
43,594
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory Penalty (a)
|
|
|
—
|
|
|
|
2,500
|
|
|
|
—
|
|
|
|
2,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
$
|
54,414
|
|
|
$
|
43,209
|
|
|
$
|
233,740
|
|
|
$
|
162,239
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin calculated as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue
|
|
|
194,722
|
|
|
|
208,770
|
|
|
|
809,837
|
|
|
|
765,323
|
|
Adjusted EBITDA
|
|
|
54,414
|
|
|
|
43,209
|
|
|
|
233,740
|
|
|
|
162,239
|
|
Adjusted EBITDA as a percentage of total
revenue
|
|
|
27.9
|
%
|
|
|
20.7
|
%
|
|
|
28.9
|
%
|
|
|
21.2
|
%
|
|
|
(a)
|
For the three months
and year ended December 31, 2013, this item represents the
amount paid in connection with the Regulatory Penalty, which is
nondeductible for tax purposes.
|
ENOVA INTERNATIONAL, INC. AND
SUBSIDIARIES
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
|
(dollars in thousands)
|
|
Estimated Adjusted EBITDA For
2015
|
|
The following table reconciles estimated Income from
operations to Adjusted EBITDA, a non-GAAP
measure:
|
|
|
|
Estimated Results
|
|
|
|
Three Months Ended March 31,
2015
|
|
|
|
Low
|
|
|
High
|
|
|
|
Unaudited
|
|
Income from operations
|
|
$
|
40,000
|
|
|
$
|
54,000
|
|
Depreciation and amortization
|
|
|
5,000
|
|
|
|
6,000
|
|
Adjusted EBITDA
|
|
$
|
45,000
|
|
|
$
|
60,000
|
|
|
|
|
|
|
|
Estimated Results
|
|
|
|
Year Ended December 31, 2015
|
|
|
|
Low
|
|
|
High
|
|
|
|
Unaudited
|
|
Income from operations
|
|
$
|
160,000
|
|
|
$
|
217,000
|
|
Depreciation and amortization
|
|
|
20,000
|
|
|
|
23,000
|
|
Adjusted EBITDA
|
|
$
|
180,000
|
|
|
$
|
240,000
|
|
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SOURCE Enova International, Inc.