CHICAGO, Feb. 4, 2016 /PRNewswire/ -- Enova
International (NYSE: ENVA), a technology and analytics driven
online lender, today announced financial results for the quarter
and year ended December 31, 2015.
![Enova International, Inc., a leading online lending company, today announced financial results for the quarter and year ended December 31, 2014. Enova International, Inc., a leading online lending company, today announced financial results for the quarter and year ended December 31, 2014.](http://photos.prnewswire.com/prnvar/20150202/173006LOGO)
"We are pleased with the improved results in our business during
the fourth quarter," said David
Fisher, CEO of Enova. "Our new initiatives continue to
perform very well, reflecting the success of our strategy to
diversify our business to prepare for anticipated regulatory
changes in the United States.
Leading these efforts is our NetCredit near-prime offering, which
has progressed to solid profitability. Given the strong growth of
this product, we successfully completed our inaugural
securitization early in the first quarter of 2016. This transaction
is a significant milestone for Enova and provides a strong
validation of our underlying NetCredit portfolio and advanced
analytics platform. Moreover, the offering lowers our cost of
capital and provides a significant source of funding to sustain the
anticipated growth of our near-prime business."
Fourth Quarter 2015 Summary
- Total revenue of $175.4 million
in the fourth quarter of 2015 declined 9.9% from $194.7 million in the fourth quarter of 2014 as a
10.2% increase in U.S. revenue was offset by a 51.1% decrease in
international revenue, primarily due to regulatory changes in the
United Kingdom.
- Gross profit margin of 59.4% in the fourth quarter of 2015
declined from 68.9% in the fourth quarter of 2014, driven by
stronger growth in the U.S. installment loan portfolio and a higher
mix of new customers, which require higher loan loss provisions.
The higher gross profit margin in the fourth quarter of 2014 was
heavily influenced by the regulatory changes in the United Kingdom and the resulting decline in
loan portfolios in that market.
- Adjusted EBITDA of $28.3 million,
a non-GAAP measure, compared to $54.8
million in the fourth quarter of 2014.
- Net income decreased to $4.2
million, or $0.13 per diluted
share, in the fourth quarter of 2015 from $22.5 million, or $0.68 per diluted share in the fourth quarter of
2014.
Full Year 2015 Summary
- Total revenue of $652.6 million
in 2015 decreased from $809.8 million
in 2014, as a 7.5% increase in U.S. revenue was offset by a 57.5%
decline in international revenue.
- Gross profit margin of 66.8% in 2015 compared to 67.1% in
2014.
- Adjusted EBITDA of $155.7 million
in 2015 compared to $235.8 million in
2014.
- Net income of $44.0 million, or
$1.33 per diluted share, in 2015
compared to $111.7 million, or
$3.38 per diluted share, in
2014.
- Adjusted earnings, a non-GAAP measure, of $53.0 million, or $1.60 per diluted share, in 2015 compared to
$113.0 million, or $3.42 per diluted share, in 2014.
"Total originations rose sequentially in each of the last three
quarters and we achieved our second consecutive quarter of year
over year growth in originations since regulatory changes were
implemented in the United Kingdom
during 2014. This growth was led by our installment loan products,
most notably our U.S. near-prime offering. Overall, installment
loan products have grown to represent the largest portion of our
revenue mix, accounting for 66% of our loan balances and 45% of
total revenue in the fourth quarter," said Robert Clifton, CFO of Enova.
Enova ended the fourth quarter of 2015 with cash and cash
equivalents of $42.1 million before
issuing a term note for $107.4
million in January 2016, under
its $175 million securitization
facility. As of December 31, 2015,
the company had combined loans and finance receivables of
$536.1 million, an increase of 26.2%
over the prior year period, and outstanding debt of $553.3 million. During the fourth quarter, Enova
generated $78.4 million of cash flow
from operations.
Outlook
For the first quarter 2016, Enova expects total revenue
of $150 million to $165 million and Adjusted EBITDA
of $25 million to $35 million. For the full year 2016,
Enova expects total revenue of $675 million to $725 million and Adjusted EBITDA
of $120 million to $140
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. Central Time / 5 p.m. Eastern Time on
February 4, 2016. 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 1-855-560-2575 (1-412-542-4161 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 February 12, 2016, 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 10078909.
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. Enova offers or arranges 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,
https://www.headwaycapital.com and http://www.businessbacker.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, through its trusted brands, uses its proprietary
technology, analytics, and customer service capabilities to quickly
evaluate, underwrite, and fund loans or provide financing to
customers when and how they want it. Headquartered in Chicago,
Enova has more than 1,100 employees serving its online
customers across the globe.
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
receivables 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 per share data)
|
(Unaudited)
|
|
|
|
December
31,
|
|
|
|
2015
|
|
|
2014
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
42,066
|
|
|
$
|
75,106
|
|
Loans and finance
receivables, net
|
|
|
434,633
|
|
|
|
323,611
|
|
Income taxes
receivable
|
|
|
5,503
|
|
|
|
—
|
|
Other receivables and
prepaid expenses
|
|
|
20,049
|
|
|
|
16,631
|
|
Deferred tax
assets
|
|
|
28,975
|
|
|
|
25,427
|
|
Property and
equipment, net
|
|
|
48,055
|
|
|
|
33,985
|
|
Goodwill
|
|
|
267,008
|
|
|
|
255,862
|
|
Intangible assets,
net
|
|
|
6,540
|
|
|
|
39
|
|
Other
assets
|
|
|
28,041
|
|
|
|
29,536
|
|
Total
assets
|
|
$
|
880,870
|
|
|
$
|
760,197
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$
|
72,141
|
|
|
$
|
57,277
|
|
Income taxes currently
payable
|
|
|
—
|
|
|
|
6,802
|
|
Deferred tax
liabilities
|
|
|
49,494
|
|
|
|
47,953
|
|
Long-term
debt
|
|
|
553,267
|
|
|
|
494,181
|
|
Total
liabilities
|
|
|
674,902
|
|
|
|
606,213
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
Common stock, $0.00001
par value, 250,000,000 shares authorized, 33,151,088 and 33,000,000
shares issued and 33,121,594 and 33,000,000 shares outstanding at
December 31, 2015 and 2014, respectively
|
|
|
—
|
|
|
|
—
|
|
Preferred stock,
$0.00001 par value, 25,000,000 shares authorized, no shares issued
and outstanding
|
|
|
—
|
|
|
|
—
|
|
Additional paid in
capital
|
|
|
9,924
|
|
|
|
294
|
|
Retained
earnings
|
|
|
200,853
|
|
|
|
156,861
|
|
Accumulated other
comprehensive loss
|
|
|
(4,622)
|
|
|
|
(3,171)
|
|
Treasury stock, at
cost (29,494 shares as of December 31, 2015)
|
|
|
(187)
|
|
|
|
—
|
|
Total stockholders'
equity
|
|
|
205,968
|
|
|
|
153,984
|
|
Total liabilities and
stockholders' equity
|
|
$
|
880,870
|
|
|
$
|
760,197
|
|
ENOVA
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(in thousands,
except per share data)
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
|
December
31,
|
|
|
December
31,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Revenue
|
|
$
|
175,417
|
|
|
$
|
194,722
|
|
|
$
|
652,600
|
|
|
$
|
809,837
|
|
Cost of
Revenue
|
|
|
71,138
|
|
|
|
60,592
|
|
|
|
216,858
|
|
|
|
266,787
|
|
Gross
Profit
|
|
|
104,279
|
|
|
|
134,130
|
|
|
|
435,742
|
|
|
|
543,050
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing
|
|
|
32,451
|
|
|
|
35,163
|
|
|
|
116,882
|
|
|
|
127,862
|
|
Operations and
technology
|
|
|
19,856
|
|
|
|
19,203
|
|
|
|
74,012
|
|
|
|
73,573
|
|
General and
administrative
|
|
|
26,791
|
|
|
|
25,350
|
|
|
|
102,073
|
|
|
|
107,875
|
|
Depreciation and
amortization
|
|
|
4,190
|
|
|
|
4,960
|
|
|
|
18,388
|
|
|
|
18,732
|
|
Total
Expenses
|
|
|
83,288
|
|
|
|
84,676
|
|
|
|
311,355
|
|
|
|
328,042
|
|
Income from
Operations
|
|
|
20,991
|
|
|
|
49,454
|
|
|
|
124,387
|
|
|
|
215,008
|
|
Interest expense,
net
|
|
|
(13,382)
|
|
|
|
(13,273)
|
|
|
|
(52,883)
|
|
|
|
(38,474)
|
|
Foreign currency
transaction gain (loss)
|
|
|
202
|
|
|
|
520
|
|
|
|
(985)
|
|
|
|
(35)
|
|
Income before
Income Taxes
|
|
|
7,811
|
|
|
|
36,701
|
|
|
|
70,519
|
|
|
|
176,499
|
|
Provision for income
taxes
|
|
|
3,630
|
|
|
|
14,199
|
|
|
|
26,527
|
|
|
|
64,828
|
|
Net
Income
|
|
$
|
4,181
|
|
|
$
|
22,502
|
|
|
$
|
43,992
|
|
|
$
|
111,671
|
|
Earnings Per
Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.13
|
|
|
$
|
0.68
|
|
|
$
|
1.33
|
|
|
$
|
3.38
|
|
Diluted
|
|
$
|
0.13
|
|
|
$
|
0.68
|
|
|
$
|
1.33
|
|
|
$
|
3.38
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
33,024
|
|
|
|
33,000
|
|
|
|
33,006
|
|
|
|
33,000
|
|
Diluted
|
|
|
33,061
|
|
|
|
33,031
|
|
|
|
33,026
|
|
|
|
33,008
|
|
ENOVA
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW
|
(dollars in
thousands)
|
(Unaudited)
|
|
|
|
Year Ended
December 31,
|
|
|
|
2015
|
|
|
2014
|
|
Cash flows
provided by operating activities
|
|
$
|
283,921
|
|
|
$
|
429,935
|
|
Cash flows used in
investing activities
|
|
|
|
|
|
|
|
|
Loans and finance
receivables
|
|
|
(322,811)
|
|
|
|
(291,246)
|
|
Acquisitions
|
|
|
(17,735)
|
|
|
|
—
|
|
Property and equipment
additions
|
|
|
(32,241)
|
|
|
|
(13,284)
|
|
Restricted cash
deposit
|
|
|
—
|
|
|
|
(7,868)
|
|
Other investing
activities
|
|
|
618
|
|
|
|
(699)
|
|
Total cash flows
used in investing activities
|
|
|
(372,169)
|
|
|
|
(313,097)
|
|
Cash flows
provided by (used in) financing activities
|
|
|
56,617
|
|
|
|
(79,039)
|
|
Effect of exchange
rates on cash
|
|
|
(1,409)
|
|
|
|
(10,173)
|
|
Net increase in
cash and cash equivalents
|
|
|
(33,040)
|
|
|
|
27,626
|
|
Cash and cash
equivalents at beginning of year
|
|
|
75,106
|
|
|
|
47,480
|
|
Cash and cash
equivalents at end of period
|
|
$
|
42,066
|
|
|
$
|
75,106
|
|
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 twelve months ended December 31, 2015
and 2014.
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
$
Change
|
|
|
%
Change
|
|
Domestic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
144,108
|
|
|
$
|
130,712
|
|
|
$
|
13,396
|
|
|
|
10.2
|
%
|
Cost of
revenue
|
|
|
63,828
|
|
|
|
48,906
|
|
|
|
14,922
|
|
|
|
30.5
|
%
|
Gross
profit
|
|
$
|
80,280
|
|
|
$
|
81,806
|
|
|
$
|
(1,526)
|
|
|
|
(1.9)
|
%
|
Gross profit
margin
|
|
|
55.7
|
%
|
|
|
62.6
|
%
|
|
|
(6.9)
|
%
|
|
|
(11.0)
|
%
|
International:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
31,309
|
|
|
$
|
64,010
|
|
|
$
|
(32,701)
|
|
|
|
(51.1)
|
%
|
Cost of
revenue
|
|
|
7,310
|
|
|
|
11,686
|
|
|
|
(4,376)
|
|
|
|
(37.4)
|
%
|
Gross
profit
|
|
$
|
23,999
|
|
|
$
|
52,324
|
|
|
$
|
(28,325)
|
|
|
|
(54.1)
|
%
|
Gross profit
margin
|
|
|
76.7
|
%
|
|
|
81.7
|
%
|
|
|
(5.0)
|
%
|
|
|
(6.1)
|
%
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
175,417
|
|
|
$
|
194,722
|
|
|
$
|
(19,305)
|
|
|
|
(9.9)
|
%
|
Cost of
revenue
|
|
|
71,138
|
|
|
|
60,592
|
|
|
|
10,546
|
|
|
|
17.4
|
%
|
Gross
profit
|
|
$
|
104,279
|
|
|
$
|
134,130
|
|
|
$
|
(29,851)
|
|
|
|
(22.3)
|
%
|
Gross profit
margin
|
|
|
59.4
|
%
|
|
|
68.9
|
%
|
|
|
(9.5)
|
%
|
|
|
(13.8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
$
Change
|
|
|
%
Change
|
|
Domestic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
510,242
|
|
|
$
|
474,715
|
|
|
$
|
35,527
|
|
|
|
7.5
|
%
|
Cost of
revenue
|
|
|
196,963
|
|
|
|
171,798
|
|
|
|
25,165
|
|
|
|
14.6
|
%
|
Gross
profit
|
|
$
|
313,279
|
|
|
$
|
302,917
|
|
|
$
|
10,362
|
|
|
|
3.4
|
%
|
Gross profit
margin
|
|
|
61.4
|
%
|
|
|
63.8
|
%
|
|
|
(2.4)
|
%
|
|
|
(3.8)
|
%
|
International:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
142,358
|
|
|
$
|
335,122
|
|
|
$
|
(192,764)
|
|
|
|
(57.5)
|
%
|
Cost of
revenue
|
|
|
19,895
|
|
|
|
94,989
|
|
|
|
(75,094)
|
|
|
|
(79.1)
|
%
|
Gross
profit
|
|
$
|
122,463
|
|
|
$
|
240,133
|
|
|
$
|
(117,670)
|
|
|
|
(49.0)
|
%
|
Gross profit
margin
|
|
|
86.0
|
%
|
|
|
71.7
|
%
|
|
|
14.3
|
%
|
|
|
19.9
|
%
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
652,600
|
|
|
$
|
809,837
|
|
|
$
|
(157,237)
|
|
|
|
(19.4)
|
%
|
Cost of
revenue
|
|
|
216,858
|
|
|
|
266,787
|
|
|
|
(49,929)
|
|
|
|
(18.7)
|
%
|
Gross
profit
|
|
$
|
435,742
|
|
|
$
|
543,050
|
|
|
$
|
(107,308)
|
|
|
|
(19.8)
|
%
|
Gross profit
margin
|
|
|
66.8
|
%
|
|
|
67.1
|
%
|
|
|
(0.3)
|
%
|
|
|
(0.4)
|
%
|
ENOVA
INTERNATIONAL, INC. AND SUBSIDIARIES
|
LOANS AND FINANCE
RECEIVABLES FINANCIAL AND OPERATING DATA
|
(dollars in
thousands)
|
|
Three Months Ended
December 31
|
|
2015
|
|
|
2014
|
|
|
Change
|
|
Cost of
revenue
|
|
$
|
71,138
|
|
|
$
|
60,592
|
|
|
$
|
10,546
|
|
Charge-offs (net of
recoveries)
|
|
|
68,557
|
|
|
|
64,693
|
|
|
|
3,864
|
|
Average combined
loans and finance receivables, gross:
|
|
|
|
|
|
|
|
|
|
|
|
|
Company
owned(a)
|
|
|
472,230
|
|
|
|
372,832
|
|
|
|
99,398
|
|
Guaranteed by
Enova(a)(b)
|
|
|
34,881
|
|
|
|
34,483
|
|
|
|
398
|
|
Average combined
loans and finance receivables,
gross (a)(c)
|
|
$
|
507,111
|
|
|
$
|
407,315
|
|
|
$
|
99,796
|
|
Ending combined
loans and finance receivables, gross:
|
|
|
|
|
|
|
|
|
|
|
|
|
Company
owned
|
|
$
|
501,955
|
|
|
$
|
388,559
|
|
|
$
|
113,396
|
|
Guaranteed by
Enova(b)
|
|
|
34,123
|
|
|
|
36,270
|
|
|
|
(2,147)
|
|
Ending combined
loans and finance receivables, gross (c)
|
|
$
|
536,078
|
|
|
$
|
424,829
|
|
|
$
|
111,249
|
|
Ending allowance and
liability for losses
|
|
$
|
69,078
|
|
|
$
|
66,524
|
|
|
$
|
2,554
|
|
Combined
originations(d)
|
|
$
|
546,352
|
|
|
$
|
519,057
|
|
|
$
|
27,295
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and finance
receivables ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue as a
% of average combined loans and finance receivables,
gross(a)(c)
|
|
|
14.0
|
%
|
|
|
14.9
|
%
|
|
|
(0.9)
|
%
|
Charge-offs (net of
recoveries) as a % of average combined loans and finance
receivables, gross(a)(c)
|
|
|
13.5
|
%
|
|
|
15.9
|
%
|
|
|
(2.4)
|
%
|
Gross profit
margin
|
|
|
59.4
|
%
|
|
|
68.9
|
%
|
|
|
(9.5)
|
%
|
Allowance and
liability for losses as a % of combined loans and finance
receivables, gross(c)(e)
|
|
|
12.9
|
%
|
|
|
15.7
|
%
|
|
|
(2.8)%
|
%
|
|
|
(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)
|
Represents loans and
finance receivables originated by Enova and third-party lenders
through the CSO programs and includes renewals of existing
origination agreements to customers in good standing. The
disclosure is statistical data that is not included in Enova's
financial statements.
|
(e)
|
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
|
|
|
Year
Ended
|
|
|
|
December
31,
|
|
|
December
31,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Net
income(a)
|
|
$
|
4,181
|
|
|
$
|
22,502
|
|
|
$
|
43,992
|
|
|
$
|
111,671
|
|
Adjustments (net of
tax):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease termination and
relocation costs(b)
|
|
|
—
|
|
|
|
—
|
|
|
|
2,076
|
|
|
|
906
|
|
Intangible asset
amortization
|
|
|
301
|
|
|
|
5
|
|
|
|
308
|
|
|
|
28
|
|
Stock-based
compensation expense
|
|
|
1,856
|
|
|
|
256
|
|
|
|
6,008
|
|
|
|
420
|
|
Foreign currency
transaction (gain) loss
|
|
|
(140)
|
|
|
|
(332)
|
|
|
|
614
|
|
|
|
22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
earnings(a)
|
|
$
|
6,198
|
|
|
$
|
22,431
|
|
|
$
|
52,998
|
|
|
$
|
113,047
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share(a)
|
|
$
|
0.13
|
|
|
$
|
0.68
|
|
|
$
|
1.33
|
|
|
$
|
3.38
|
|
Adjustments (net of
tax):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease termination and
relocation costs(b)
|
|
|
—
|
|
|
|
—
|
|
|
|
0.06
|
|
|
|
0.03
|
|
Intangible asset
amortization
|
|
|
0.01
|
|
|
|
—
|
|
|
|
0.01
|
|
|
|
—
|
|
Stock-based
compensation expense
|
|
|
0.06
|
|
|
|
0.01
|
|
|
|
0.18
|
|
|
|
0.01
|
|
Foreign currency
transaction (gain) loss
|
|
|
(0.01)
|
|
|
|
(0.01)
|
|
|
|
0.02
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share(a)
|
|
$
|
0.19
|
|
|
$
|
0.68
|
|
|
$
|
1.60
|
|
|
$
|
3.42
|
|
Adjusted
EBITDA
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
|
December
31,
|
|
|
December
31,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Net
income(a)
|
|
$
|
4,181
|
|
|
$
|
22,502
|
|
|
$
|
43,992
|
|
|
$
|
111,671
|
|
Depreciation and
amortization expenses
|
|
|
4,190
|
|
|
|
4,960
|
|
|
|
18,388
|
|
|
|
18,732
|
|
Interest expense,
net
|
|
|
13,382
|
|
|
|
13,273
|
|
|
|
52,883
|
|
|
|
38,474
|
|
Foreign currency
transaction (gain) loss
|
|
|
(202)
|
|
|
|
(520)
|
|
|
|
985
|
|
|
|
35
|
|
Provision for income
taxes
|
|
|
3,630
|
|
|
|
14,199
|
|
|
|
26,527
|
|
|
|
64,828
|
|
Stock-based
compensation expense
|
|
|
3,089
|
|
|
|
407
|
|
|
|
9,630
|
|
|
|
664
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease termination and
relocation costs(b)
|
|
|
—
|
|
|
|
—
|
|
|
|
3,270
|
|
|
|
1,415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(a)
|
|
$
|
28,270
|
|
|
$
|
54,821
|
|
|
$
|
155,675
|
|
|
$
|
235,819
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
margin calculated as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Revenue(a)
|
|
$
|
175,417
|
|
|
$
|
194,722
|
|
|
$
|
652,600
|
|
|
$
|
809,837
|
|
Adjusted
EBITDA(a)
|
|
|
28,270
|
|
|
|
54,821
|
|
|
|
155,675
|
|
|
|
235,819
|
|
Adjusted EBITDA as a
percentage of total revenue
|
|
|
16.1
|
%
|
|
|
28.2
|
%
|
|
|
23.9
|
%
|
|
|
29.1
|
%
|
|
|
(a)
|
Includes an
out-of-period adjustment to correct the Company's revenue
recognition policy in order to recognize line of credit draw fees
over the period the draw is outstanding. The Company recorded a
$2.5 million reduction to revenue ($1.6 million net of tax or $0.05
per diluted share) during the fourth quarter of
2015.
|
(b)
|
In May 2015, the
Company relocated its headquarters and as a result incurred $3.3
million of facility cease-use charges ($2.1 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 2016
|
|
The following table
reconciles estimated Income from operations to Adjusted EBITDA, a
non-GAAP measure:
|
|
|
|
Estimated
Results
|
|
|
|
Three Months Ended
March 31, 2016
|
|
|
|
Low
|
|
|
High
|
|
|
|
Unaudited
|
|
Income from
operations
|
|
$
|
19,000
|
|
|
$
|
29,000
|
|
Depreciation and
amortization
|
|
|
4,000
|
|
|
|
4,000
|
|
Stock-based
compensation expense
|
|
|
2,000
|
|
|
|
2,000
|
|
Adjusted
EBITDA
|
|
$
|
25,000
|
|
|
$
|
35,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated
Results
|
|
|
|
Year Ended
December 31, 2016
|
|
|
|
Low
|
|
|
High
|
|
|
|
Unaudited
|
|
Income from
operations
|
|
$
|
92,000
|
|
|
$
|
112,000
|
|
Depreciation and
amortization
|
|
|
18,000
|
|
|
|
18,000
|
|
Stock-based
compensation expense
|
|
|
10,000
|
|
|
|
10,000
|
|
Adjusted
EBITDA
|
|
$
|
120,000
|
|
|
$
|
140,000
|
|
Logo - http://photos.prnewswire.com/prnh/20150202/173006LOGO
To view the original version on PR Newswire,
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SOURCE Enova International, Inc.