CHICAGO, Aug. 5, 2015 /PRNewswire/ -- Enova
International (NYSE: ENVA), a technology and analytics driven
online lender, today announced financial results for the quarter
ended June 30, 2015.
"Our diversification strategy and recent product introductions
continue to outperform our expectations and are transforming the
makeup of Enova," said David Fisher,
CEO of Enova. "This strong performance has provided a partial
offset to the decline in our U.K. revenue resulting from regulatory
changes, however, we are very encouraged by the sequential
improvement in U.K. loan originations during the quarter and
believe that our strong regulatory compliance positions us well for
future success in the U.K. Moreover, we remain very optimistic
about the continued progress and the market potential of our new
initiatives in Brazil and
China, as well as our near-prime
offering in the U.K. and our growing small business products."
Second Quarter 2015 Summary
- Total revenue of $146.3 million in the second quarter
of 2015 declined 27.4% from $201.5
million in the second quarter of 2014 as a 4.3% increase in
U.S. revenue was offset by a 64.6% decrease in international
revenue, primarily due to regulatory changes in the United
Kingdom.
- Gross profit margin of 71.6% in the second quarter of 2015 rose
480 basis points from the second quarter of 2014, driven by
stricter underwriting standards in the United Kingdom as well as continued
enhancements to Enova's U.S. underwriting models.
- Adjusted EBITDA of $41.1 million, a non-GAAP measure,
decreased 32.9% from the same quarter last year due to the decrease
in revenue, while Adjusted EBITDA margin decreased to 28.1% from
30.4%.
- Net income decreased 64.5% to $10.9 million,
or $0.33 per diluted share, in the second quarter of 2015
from $30.6 million, or $0.93 per diluted share, in
the second quarter of 2014.
"We are pleased by the continued momentum of our U.S.
installment products, driven by the success of our NetCredit
near-prime offering along with our expansion into additional
states. Our installment loan products continue to represent an
increasing portion of our revenue mix, accounting for 39% of total
revenue in the second quarter, up from 30% of total revenue for the
same quarter last year. In addition, cash flow provided by
operating activities during the second quarter of 2015 was
$47 million, which we continue to
invest back into the business to grow our loan portfolio and
support our new initiatives," said Robert Clifton, CFO of
Enova.
Outlook
For the third quarter 2015, Enova expects total revenue
of $165 million to $185 million and Adjusted EBITDA
of $35 million to $45 million. For the full year 2015,
Enova now expects total revenue of $650 million
to $700 million and Adjusted EBITDA of $170
million to $200 million. The company's full year revenue
outlook reflects a slower improvement in the U.K. market than
originally anticipated.
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 7 a.m. Central Time/ 8 a.m. Eastern Time on
August 5, 2015. The live webcast of
the 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. The U.S.
dial-in for the call is 1-877-870-4263 (1-412-317-0790 for non-U.S.
callers). Please ask to be joined to the Enova International Call.
A replay of the conference call will be available until August
12, 2015 at 10:59 p.m. Central Time / 11:59
p.m. Eastern Time, while an archived version of the webcast will be
available on the Enova Investor Relations website for 90 days. The
U.S. dial-in for the conference call replay is 1-877-344-7529
(1-412-317-0088). The replay access code is 10069111.
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
credit. As of June 30, 2015, Enova
offered or arranged loans for consumers and/or financing for small
businesses in all 50 states and Washington D.C. in the United
States and in five foreign countries:
- in the United States at
https://www.cashnetusa.com, https://www.netcredit.com and
- https://www.headwaycapital.com,
- in the United Kingdom at
https://www.quickquid.co.uk, https://www.poundstopocket.co.uk and
https://www.onstride.co.uk,
- in Australia at
https://www.dollarsdirect.com.au,
- in Canada at
https://www.dollarsdirect.ca,
- in Brazil at
https://www.simplic.com.br and
- in China at
https://www.youxinyi.cn.
Enova 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 June 30, 2015.
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"),
including our annual report on Form 10-K, quarterly reports on
Forms 10-Q and current reports on 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 Loans and Finance Receivables
Enova has provided combined loans and finance receivables, which
is a non-GAAP measure. Enova also reports allowances and
liabilities for estimated losses on loans and finance receivables
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 loan and finance
receivable 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 and finance receivables are impacted by the aggregate
amount of loans and finance receivables 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, taxes, and stock-based
compensation, 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. In addition, management believes that
the adjustment for lease termination and relocation costs shown
below is useful to investors in order to allow them to compare
Enova's financial results during the periods shown without the
effect of the expense item. 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)
|
|
|
|
June
30,
|
|
|
December
31,
|
|
|
|
2015
|
|
|
2014
|
|
|
2014
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
96,237
|
|
|
$
|
79,785
|
|
|
$
|
75,106
|
|
Loans and finance
receivables, net
|
|
|
317,454
|
|
|
|
291,966
|
|
|
|
323,611
|
|
Other receivables and
prepaid expenses
|
|
|
15,381
|
|
|
|
13,797
|
|
|
|
16,631
|
|
Deferred tax
assets
|
|
|
21,646
|
|
|
|
25,841
|
|
|
|
25,427
|
|
Property and
equipment, net
|
|
|
50,549
|
|
|
|
38,000
|
|
|
|
33,985
|
|
Goodwill
|
|
|
270,246
|
|
|
|
255,869
|
|
|
|
255,862
|
|
Intangible assets,
net
|
|
|
3,705
|
|
|
|
14
|
|
|
|
39
|
|
Other
assets
|
|
|
28,340
|
|
|
|
22,341
|
|
|
|
29,536
|
|
Total
assets
|
|
$
|
803,558
|
|
|
$
|
727,613
|
|
|
$
|
760,197
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$
|
70,735
|
|
|
$
|
51,110
|
|
|
$
|
57,277
|
|
Related party payable,
net
|
|
|
—
|
|
|
|
11,451
|
|
|
|
—
|
|
Income taxes currently
payable
|
|
|
713
|
|
|
|
—
|
|
|
|
6,802
|
|
Deferred tax
liabilities
|
|
|
42,508
|
|
|
|
48,757
|
|
|
|
47,953
|
|
Long-term
debt
|
|
|
494,516
|
|
|
|
493,863
|
|
|
|
494,181
|
|
Total
liabilities
|
|
|
608,472
|
|
|
|
605,181
|
|
|
|
606,213
|
|
Commitments and
contingencies (Note 8)
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
4,210
|
|
|
|
—
|
|
|
|
294
|
|
Retained
earnings
|
|
|
192,255
|
|
|
|
116,266
|
|
|
|
156,861
|
|
Accumulated other
comprehensive (loss) income
|
|
|
(1,379)
|
|
|
|
6,166
|
|
|
|
(3,171)
|
|
Total stockholders'
equity
|
|
|
195,086
|
|
|
|
122,432
|
|
|
|
153,984
|
|
Total liabilities and
stockholders' equity
|
|
$
|
803,558
|
|
|
$
|
727,613
|
|
|
$
|
760,197
|
|
ENOVA
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(in thousands,
except per share data)
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
|
June
30,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Revenue
|
|
$
|
146,280
|
|
|
$
|
201,482
|
|
|
$
|
311,956
|
|
|
$
|
409,947
|
|
Cost of
Revenue
|
|
|
41,536
|
|
|
|
66,840
|
|
|
|
80,106
|
|
|
|
133,276
|
|
Gross
Profit
|
|
|
104,744
|
|
|
|
134,642
|
|
|
|
231,850
|
|
|
|
276,671
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing
|
|
|
24,707
|
|
|
|
30,828
|
|
|
|
48,863
|
|
|
|
59,306
|
|
Operations and
technology
|
|
|
17,554
|
|
|
|
17,123
|
|
|
|
35,566
|
|
|
|
35,008
|
|
General and
administrative
|
|
|
27,089
|
|
|
|
26,931
|
|
|
|
52,655
|
|
|
|
51,358
|
|
Depreciation and
amortization
|
|
|
5,033
|
|
|
|
4,316
|
|
|
|
10,316
|
|
|
|
8,434
|
|
Total
Expenses
|
|
|
74,383
|
|
|
|
79,198
|
|
|
|
147,400
|
|
|
|
154,106
|
|
Income from
Operations
|
|
|
30,361
|
|
|
|
55,444
|
|
|
|
84,450
|
|
|
|
122,565
|
|
Interest expense,
net
|
|
|
(12,904)
|
|
|
|
(7,311)
|
|
|
|
(26,209)
|
|
|
|
(12,065)
|
|
Foreign currency
transaction loss
|
|
|
(31)
|
|
|
|
(299)
|
|
|
|
(975)
|
|
|
|
(400)
|
|
Income before
Income Taxes
|
|
|
17,426
|
|
|
|
47,834
|
|
|
|
57,266
|
|
|
|
110,100
|
|
Provision for income
taxes
|
|
|
6,562
|
|
|
|
17,205
|
|
|
|
21,872
|
|
|
|
39,416
|
|
Net
Income
|
|
$
|
10,864
|
|
|
$
|
30,629
|
|
|
$
|
35,394
|
|
|
$
|
70,684
|
|
Earnings Per
Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.33
|
|
|
$
|
0.93
|
|
|
$
|
1.07
|
|
|
$
|
2.14
|
|
Diluted
|
|
$
|
0.33
|
|
|
$
|
0.93
|
|
|
$
|
1.07
|
|
|
$
|
2.14
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
33,000
|
|
|
|
33,000
|
|
|
|
33,000
|
|
|
|
33,000
|
|
Diluted
|
|
|
33,015
|
|
|
|
33,000
|
|
|
|
33,012
|
|
|
|
33,000
|
|
ENOVA
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW
|
(dollars in
thousands)
|
(Unaudited)
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
2015
|
|
|
2014
|
|
Cash flows
provided by operating activities
|
|
$
|
134,922
|
|
|
$
|
237,896
|
|
Cash flows used in
investing activities
|
|
|
|
|
|
|
|
|
Loans and finance
receivables
|
|
|
(72,511)
|
|
|
|
(124,403)
|
|
Acquisitions
|
|
|
(17,735)
|
|
|
|
—
|
|
Property and equipment
additions
|
|
|
(26,502)
|
|
|
|
(6,828)
|
|
Other investing
activities
|
|
|
15
|
|
|
|
—
|
|
Total cash flows
used in investing activities
|
|
|
(116,733)
|
|
|
|
(131,231)
|
|
Cash flows used in
financing activities
|
|
|
—
|
|
|
|
(78,810)
|
|
Effect of exchange
rates on cash
|
|
|
2,942
|
|
|
|
4,450
|
|
Net increase in
cash and cash equivalents
|
|
|
21,131
|
|
|
|
32,305
|
|
Cash and cash
equivalents at beginning of year
|
|
|
75,106
|
|
|
|
47,480
|
|
Cash and cash
equivalents at end of period
|
|
$
|
96,237
|
|
|
$
|
79,785
|
|
ENOVA
INTERNATIONAL, INC. AND SUBSIDIARIES
|
GEOGRAPHIC
INFORMATION
|
(dollars in
thousands)
|
|
The following table
presents information on Enova's domestic and international
operations for the three and six months ended June 30, 2015 and
2014.
|
|
|
|
Three Months Ended
June 30,
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
$
Change
|
|
|
%
Change
|
|
Domestic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
113,420
|
|
|
$
|
108,786
|
|
|
$
|
4,634
|
|
|
|
4.3
|
%
|
Cost of
revenue
|
|
|
40,149
|
|
|
|
38,731
|
|
|
|
1,418
|
|
|
|
3.7
|
|
Gross
profit
|
|
$
|
73,271
|
|
|
$
|
70,055
|
|
|
$
|
3,216
|
|
|
|
4.6
|
|
Gross profit
margin
|
|
|
64.6
|
%
|
|
|
64.4
|
%
|
|
|
0.2
|
%
|
|
|
0.3
|
%
|
International:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
32,860
|
|
|
$
|
92,696
|
|
|
$
|
(59,836)
|
|
|
|
(64.6)%
|
|
Cost of
revenue
|
|
|
1,387
|
|
|
|
28,109
|
|
|
|
(26,722)
|
|
|
|
(95.1)
|
|
Gross
profit
|
|
$
|
31,473
|
|
|
$
|
64,587
|
|
|
$
|
(33,114)
|
|
|
|
(51.3)
|
|
Gross profit
margin
|
|
|
95.8
|
%
|
|
|
69.7
|
%
|
|
|
26.1
|
%
|
|
|
37.5
|
%
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
146,280
|
|
|
$
|
201,482
|
|
|
$
|
(55,202)
|
|
|
|
(27.4)%
|
|
Cost of
revenue
|
|
|
41,536
|
|
|
|
66,840
|
|
|
|
(25,304)
|
|
|
|
(37.9)
|
|
Gross
profit
|
|
$
|
104,744
|
|
|
$
|
134,642
|
|
|
$
|
(29,898)
|
|
|
|
(22.2)
|
|
Gross profit
margin
|
|
|
71.6
|
%
|
|
|
66.8
|
%
|
|
|
4.8
|
%
|
|
|
7.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
$
Change
|
|
|
%
Change
|
|
Domestic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
232,473
|
|
|
$
|
217,873
|
|
|
$
|
14,600
|
|
|
|
6.7
|
%
|
Cost of
revenue
|
|
|
74,079
|
|
|
|
67,834
|
|
|
|
6,245
|
|
|
|
9.2
|
|
Gross
profit
|
|
$
|
158,394
|
|
|
$
|
150,039
|
|
|
$
|
8,355
|
|
|
|
5.6
|
|
Gross profit
margin
|
|
|
68.1
|
%
|
|
|
68.9
|
%
|
|
|
(0.8)%
|
|
|
|
(1.1)%
|
|
International:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
79,483
|
|
|
$
|
192,074
|
|
|
$
|
(112,591)
|
|
|
|
(58.6)%
|
|
Cost of
revenue
|
|
|
6,027
|
|
|
|
65,442
|
|
|
|
(59,415)
|
|
|
|
(90.8)
|
|
Gross
profit
|
|
$
|
73,456
|
|
|
$
|
126,632
|
|
|
$
|
(53,176)
|
|
|
|
(42.0)
|
|
Gross profit
margin
|
|
|
92.4
|
%
|
|
|
65.9
|
%
|
|
|
26.5
|
%
|
|
|
40.2
|
%
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
311,956
|
|
|
$
|
409,947
|
|
|
$
|
(97,991)
|
|
|
|
(23.9)%
|
|
Cost of
revenue
|
|
|
80,106
|
|
|
|
133,276
|
|
|
|
(53,170)
|
|
|
|
(39.9)
|
|
Gross
profit
|
|
$
|
231,850
|
|
|
$
|
276,671
|
|
|
$
|
(44,821)
|
|
|
|
(16.2)
|
|
Gross profit
margin
|
|
|
74.3
|
%
|
|
|
67.5
|
%
|
|
|
6.8
|
%
|
|
|
10.1
|
%
|
ENOVA
INTERNATIONAL, INC. AND SUBSIDIARIES
|
LOANS AND FINANCE
RECEIVABLES FINANCIAL AND OPERATING DATA
|
(dollars in
thousands)
|
|
The following table
shows loans and finance receivables and related loan loss activity,
which is based on loan and finance receivable balances, for the
three months ended June 30, 2015 and 2014.
|
|
Three Months Ended
June 30
|
|
2015
|
|
|
2014
|
|
|
Change
|
|
Cost of
revenue
|
|
$
|
41,536
|
|
|
$
|
66,840
|
|
|
$
|
(25,304)
|
|
Charge-offs (net of
recoveries)
|
|
|
41,541
|
|
|
|
73,784
|
|
|
|
(32,243)
|
|
Average combined
loans and finance receivables, gross:
|
|
|
|
|
|
|
|
|
|
|
|
|
Company
owned(a)
|
|
|
342,382
|
|
|
|
353,675
|
|
|
|
(11,293)
|
|
Guaranteed by
Enova(a)(b)
|
|
|
27,980
|
|
|
|
32,022
|
|
|
|
(4,042)
|
|
Average combined
loans and finance receivables,
gross (a)(c)
|
|
$
|
370,362
|
|
|
$
|
385,697
|
|
|
$
|
(15,335)
|
|
Ending combined
loans and finance receivables, gross:
|
|
|
|
|
|
|
|
|
|
|
|
|
Company
owned
|
|
$
|
368,715
|
|
|
$
|
359,760
|
|
|
$
|
8,955
|
|
Guaranteed by
Enova(b)
|
|
|
31,539
|
|
|
|
34,915
|
|
|
|
(3,376)
|
|
Ending combined
loans and finance receivables, gross
(c)
|
|
$
|
400,254
|
|
|
$
|
394,675
|
|
|
$
|
5,579
|
|
Ending allowance and
liability for losses
|
|
$
|
52,689
|
|
|
$
|
69,375
|
|
|
$
|
(16,686)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and finance
receivables ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue as a
% of average combined loans and finance receivables,
gross(a)(c)
|
|
|
11.2
|
%
|
|
|
17.3
|
%
|
|
|
(6.1)
|
%
|
Charge-offs (net of
recoveries) as a % of average combined loans and finance
receivables, gross(a)(c)
|
|
|
11.2
|
%
|
|
|
19.1
|
%
|
|
|
(7.9)
|
%
|
Gross profit
margin
|
|
|
71.6
|
%
|
|
|
66.8
|
%
|
|
|
4.8
|
%
|
Allowance and
liability for losses as a % of combined loans and finance
receivables, gross(c)(d)
|
|
|
13.2
|
%
|
|
|
17.6
|
%
|
|
|
(4.4)
|
%
|
|
|
(a)
|
The average combined
loans and finance receivables, 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
loans and finance receivables.
|
(d)
|
Allowance and
liability for losses as a percentage of combined loans and finance
receivables, 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
|
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
|
June
30,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Net Income
|
|
$
|
10,864
|
|
|
$
|
30,629
|
|
|
$
|
35,394
|
|
|
$
|
70,684
|
|
Adjustments (net of
tax):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease termination and
relocation costs(a)
|
|
|
2,170
|
|
|
|
906
|
|
|
|
2,170
|
|
|
|
906
|
|
Intangible asset
amortization
|
|
|
2
|
|
|
|
6
|
|
|
|
4
|
|
|
|
19
|
|
Stock-based
compensation expense
|
|
|
1,373
|
|
|
|
54
|
|
|
|
2,427
|
|
|
|
109
|
|
Foreign currency
transaction loss
|
|
|
19
|
|
|
|
192
|
|
|
|
600
|
|
|
|
257
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
earnings
|
|
$
|
14,428
|
|
|
$
|
31,787
|
|
|
$
|
40,595
|
|
|
$
|
71,975
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
|
0.33
|
|
|
$
|
0.93
|
|
|
$
|
1.07
|
|
|
$
|
2.14
|
|
Adjusted earnings per
share
|
|
$
|
0.44
|
|
|
$
|
0.96
|
|
|
$
|
1.23
|
|
|
$
|
2.18
|
|
Adjusted
EBITDA
|
|
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
|
June
30,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Net Income
|
|
$
|
10,864
|
|
|
$
|
30,629
|
|
|
$
|
35,394
|
|
|
$
|
70,684
|
|
Depreciation and
amortization expenses
|
|
|
5,033
|
|
|
|
4,316
|
|
|
|
10,316
|
|
|
|
8,434
|
|
Interest expense,
net
|
|
|
12,904
|
|
|
|
7,311
|
|
|
|
26,209
|
|
|
|
12,065
|
|
Foreign currency
transaction loss
|
|
|
31
|
|
|
|
299
|
|
|
|
975
|
|
|
|
400
|
|
Provision for income
taxes
|
|
|
6,562
|
|
|
|
17,205
|
|
|
|
21,872
|
|
|
|
39,416
|
|
Stock-based
compensation expense
|
|
|
2,204
|
|
|
|
85
|
|
|
|
3,916
|
|
|
|
170
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease termination and
relocation costs(a)
|
|
|
3,480
|
|
|
|
1,415
|
|
|
|
3,480
|
|
|
|
1,415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
41,078
|
|
|
$
|
61,260
|
|
|
$
|
102,162
|
|
|
$
|
132,584
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
margin calculated as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Revenue
|
|
$
|
146,280
|
|
|
$
|
201,482
|
|
|
$
|
311,956
|
|
|
$
|
409,947
|
|
Adjusted
EBITDA
|
|
|
41,078
|
|
|
|
61,260
|
|
|
|
102,162
|
|
|
|
132,584
|
|
Adjusted EBITDA as a
percentage of total revenue
|
|
|
28.1
|
%
|
|
|
30.4
|
%
|
|
|
32.7
|
%
|
|
|
32.3
|
%
|
|
|
(a)
|
In May 2015, the
Company relocated its headquarters and as a result incurred $3.5
million of facility cease-use charges ($2.2 million net of tax)
consisting of remaining lease obligations and disposal costs on its
prior headquarters.
|
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
September 30, 2015
|
|
|
|
Low
|
|
|
High
|
|
|
|
Unaudited
|
|
Income from
operations
|
|
$
|
28,000
|
|
|
$
|
36,000
|
|
Depreciation and
amortization
|
|
|
5,000
|
|
|
|
6,000
|
|
Stock-based
compensation expense
|
|
|
2,000
|
|
|
|
3,000
|
|
Adjusted
EBITDA
|
|
$
|
35,000
|
|
|
$
|
45,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated
Results
|
|
|
|
Year Ended
December 31, 2015
|
|
|
|
Low
|
|
|
High
|
|
|
|
Unaudited
|
|
Income from
operations
|
|
$
|
136,520
|
|
|
$
|
162,585
|
|
Lease termination and
relocation costs(a)
|
|
|
3,480
|
|
|
|
1,415
|
|
Depreciation and
amortization
|
|
|
22,000
|
|
|
|
25,000
|
|
Stock-based
compensation expense
|
|
|
8,000
|
|
|
|
11,000
|
|
Adjusted
EBITDA
|
|
$
|
170,000
|
|
|
$
|
200,000
|
|
|
|
(a)
|
In May 2015, the
Company relocated its headquarters and as a result incurred $3.5
million of facility cease-use charges ($2.2 million net of tax)
consisting of remaining lease obligations and disposal costs on its
prior headquarters.
|
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SOURCE Enova International, Inc.