CHICAGO, July 26, 2018 /PRNewswire/ -- Enova International
(NYSE: ENVA), a leading financial technology company offering
consumer and small business loans and financing, today
announced financial results for the quarter ended June
30, 2018.
"We are pleased with our strong second quarter results, driven
by robust demand and stable credit across each of our six growth
businesses," said David Fisher,
Enova's CEO. "We've been consistent in executing our focused growth
strategy, which includes the ongoing diversification of our
business. These efforts have positioned us well in each of our
markets to deliver sustainable and profitable long-term
growth."
Second Quarter 2018 Summary
- Total revenue of $253 million in
the second quarter of 2018 increased 33% from $190 million in the second quarter of 2017.
- Gross profit margin was 52.0% in the second quarter of 2018
compared to 57.9% in the second quarter of 2017.
- Net income was $18 million, or
$0.52 per diluted share, in the
second quarter of 2018 compared to net income of $12 million, or $0.35 per diluted share, in the second quarter of
2017.
- Second quarter 2018 adjusted EBITDA of $50 million, a non-GAAP measure, increased from
$42 million in the second quarter of
2017.
- Adjusted earnings of $21 million,
or $0.59 per diluted share, a
non-GAAP measure, in the second quarter of 2018 increased from
adjusted earnings of $14 million, or
$0.41 per diluted share, in the
second quarter of 2017.
"The second quarter marks the 11th consecutive
quarter we have delivered financial results within or exceeding our
guidance ranges, demonstrating the strength of our business model
and consistency of our execution," said Steve Cunningham, CFO of Enova. "Strong
receivables growth, stable credit, significant operating leverage,
and balance sheet flexibility continue to drive our financial
results."
Enova ended the second quarter of 2018 with unrestricted cash
and cash equivalents of $47 million. As of June 30, 2018, the company had total debt
outstanding of $763 million, which included $179 million outstanding under
Enova's $295 million securitization facilities. During
the second quarter, Enova generated $143 million of cash
flow from operations. On July 23, the
Company added a new 3-year, $150
million securitization facility to support growth of the
NetCredit business. The new facility increases total
NetCredit securitization capacity to $445
million and lowers the cost of financing.
Outlook
For the third quarter of 2018, Enova expects total revenue
of $260 million to $275 million, GAAP results of
$0.30 diluted earnings per share to
$0.52 diluted earnings per share,
adjusted EBITDA of $40 million to $50 million, and
adjusted earnings per share of $0.37
to $0.58. For the full year 2018,
Enova expects total revenue of $1.035 billion
to $1.075 billion, GAAP diluted earnings per share of
$1.78 to $2.22, adjusted EBITDA of $195 million
to $215 million, and adjusted earnings per share of
$2.19 to $2.63.
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 today, Thursday, July
26th. 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
August 2, 2018, 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 10121788.
About Enova
Enova (NYSE: ENVA) is a leading provider of online financial
services to non-prime consumers and small businesses, providing
access to credit powered by its advanced analytics, innovative
technology, and world-class online platform and services. Enova has
provided more than 5 million customers around the globe with access
to more than $20 billion in loans and financing. The
financial technology company has a portfolio of trusted brands
serving consumers, including CashNetUSA®, NetCredit®, On Stride
Financial®, Pounds to Pocket®, QuickQuid® and Simplic®; two brands
serving small businesses, Headway Capital® and The Business
Backer®; and offers online lending platform services to lenders.
Through its Enova Decisions™ brand, it also delivers on-demand
decision-making technology and real-time predictive analytics
services to clients. You can learn more about the company and its
brands at www.enova.com.
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, stock-based
compensation, loss on early extinguishment of debt and acquisition
related costs, 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 per share data)
(Unaudited)
|
|
|
|
June 30,
|
|
|
December 31,
|
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
47,414
|
|
|
$
|
46,209
|
|
|
$
|
68,684
|
|
Restricted cash
(includes restricted cash of consolidated VIEs of $21,744, $19,119
and $21,696 as of June 30, 2018 and 2017 and
December 31, 2017, respectively)
|
|
|
28,863
|
|
|
|
26,636
|
|
|
|
29,460
|
|
Loans and finance
receivables, net (includes loans of consolidated VIEs of $257,972,
$240,444 and $282,724 and allowance for losses of $21,019, $17,072
and $22,728 as of June 30, 2018 and 2017 and
December 31, 2017, respectively)
|
|
|
750,131
|
|
|
|
563,996
|
|
|
|
704,705
|
|
Income taxes
receivable
|
|
|
3,006
|
|
|
|
13,410
|
|
|
|
4,092
|
|
Other receivables and
prepaid expenses
|
|
|
25,373
|
|
|
|
22,006
|
|
|
|
23,817
|
|
Property and
equipment, net
|
|
|
47,752
|
|
|
|
44,329
|
|
|
|
48,525
|
|
Goodwill
|
|
|
267,013
|
|
|
|
267,012
|
|
|
|
267,015
|
|
Intangible assets,
net
|
|
|
3,790
|
|
|
|
4,865
|
|
|
|
4,325
|
|
Other
assets
|
|
|
9,862
|
|
|
|
13,406
|
|
|
|
8,837
|
|
Total
assets
|
|
$
|
1,183,204
|
|
|
$
|
1,001,869
|
|
|
$
|
1,159,460
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$
|
72,406
|
|
|
$
|
62,799
|
|
|
$
|
77,123
|
|
Deferred tax
liabilities, net
|
|
|
14,322
|
|
|
|
25,753
|
|
|
|
12,108
|
|
Long-term debt
(includes long-term debt of consolidated VIEs of $179,059, $151,987
and $211,406 and debt issuance costs of $2,131, $1,054 and $3,271,
as of June 30, 2018 and 2017 and
December 31, 2017, respectively)
|
|
|
762,831
|
|
|
|
638,749
|
|
|
|
788,542
|
|
Total
liabilities
|
|
|
849,559
|
|
|
|
727,301
|
|
|
|
877,773
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, $0.00001
par value, 250,000,000 shares authorized, 34,633,819, 33,752,662
and 33,932,673 shares issued and 34,145,146, 33,635,215 and
33,504,555 outstanding as of June 30, 2018 and 2017 and
December 31, 2017, respectively
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Preferred stock,
$0.00001 par value, 25,000,000 shares authorized, no shares issued
and outstanding
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Additional paid in
capital
|
|
|
39,335
|
|
|
|
23,753
|
|
|
|
29,781
|
|
Retained
earnings
|
|
|
312,440
|
|
|
|
261,180
|
|
|
|
264,695
|
|
Accumulated other
comprehensive loss
|
|
|
(10,905)
|
|
|
|
(9,069)
|
|
|
|
(7,086)
|
|
Treasury stock, at
cost (488,673, 117,447 and 428,118 shares as of
June 30, 2018 and 2017 and December 31, 2017,
respectively)
|
|
|
(7,225)
|
|
|
|
(1,296)
|
|
|
|
(5,703)
|
|
Total stockholders'
equity
|
|
|
333,645
|
|
|
|
274,568
|
|
|
|
281,687
|
|
Total liabilities and
stockholders' equity
|
|
$
|
1,183,204
|
|
|
$
|
1,001,869
|
|
|
$
|
1,159,460
|
|
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,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Revenue
|
|
$
|
253,301
|
|
|
$
|
189,904
|
|
|
$
|
507,599
|
|
|
$
|
382,167
|
|
Cost of
Revenue
|
|
|
121,494
|
|
|
|
79,862
|
|
|
|
230,047
|
|
|
|
161,746
|
|
Gross
Profit
|
|
|
131,807
|
|
|
|
110,042
|
|
|
|
277,552
|
|
|
|
220,421
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing
|
|
|
29,386
|
|
|
|
23,410
|
|
|
|
57,122
|
|
|
|
42,993
|
|
Operations and
technology
|
|
|
27,195
|
|
|
|
21,818
|
|
|
|
52,733
|
|
|
|
45,349
|
|
General and
administrative
|
|
|
28,295
|
|
|
|
26,245
|
|
|
|
55,216
|
|
|
|
51,941
|
|
Depreciation and
amortization
|
|
|
3,837
|
|
|
|
3,366
|
|
|
|
7,675
|
|
|
|
6,863
|
|
Total
Expenses
|
|
|
88,713
|
|
|
|
74,839
|
|
|
|
172,746
|
|
|
|
147,146
|
|
Income from
Operations
|
|
|
43,094
|
|
|
|
35,203
|
|
|
|
104,806
|
|
|
|
73,275
|
|
Interest expense,
net
|
|
|
(19,355)
|
|
|
|
(17,012)
|
|
|
|
(39,028)
|
|
|
|
(34,234)
|
|
Foreign currency
transaction (loss) gain
|
|
|
(204)
|
|
|
|
62
|
|
|
|
(2,292)
|
|
|
|
289
|
|
Loss on early
extinguishment of debt
|
|
|
—
|
|
|
|
—
|
|
|
|
(4,710)
|
|
|
|
—
|
|
Income before
Income Taxes
|
|
|
23,535
|
|
|
|
18,253
|
|
|
|
58,776
|
|
|
|
39,330
|
|
Provision for income
taxes
|
|
|
5,310
|
|
|
|
6,380
|
|
|
|
12,653
|
|
|
|
13,605
|
|
Net
Income
|
|
$
|
18,225
|
|
|
$
|
11,873
|
|
|
$
|
46,123
|
|
|
$
|
25,725
|
|
Earnings Per
Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.54
|
|
|
$
|
0.35
|
|
|
$
|
1.36
|
|
|
$
|
0.77
|
|
Diluted
|
|
$
|
0.52
|
|
|
$
|
0.35
|
|
|
$
|
1.32
|
|
|
$
|
0.75
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
33,984
|
|
|
|
33,553
|
|
|
|
33,821
|
|
|
|
33,463
|
|
Diluted
|
|
|
35,371
|
|
|
|
34,125
|
|
|
|
34,966
|
|
|
|
34,081
|
|
ENOVA
INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW
(dollars in
thousands)
(Unaudited)
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
2018
|
|
|
2017
|
|
Cash flows
provided by operating activities
|
|
$
|
295,716
|
|
|
$
|
186,058
|
|
Cash flows used in
investing activities
|
|
|
|
|
|
|
|
|
Loans and finance
receivables
|
|
|
(276,550)
|
|
|
|
(164,731)
|
|
Property and equipment
additions
|
|
|
(7,065)
|
|
|
|
(5,301)
|
|
Other investing
activities
|
|
|
42
|
|
|
|
1,482
|
|
Total cash flows
used in investing activities
|
|
|
(283,573)
|
|
|
|
(168,550)
|
|
Cash flows used in
financing activities
|
|
|
(33,599)
|
|
|
|
(15,900)
|
|
Effect of exchange
rates on cash, cash equivalents and restricted cash
|
|
|
(411)
|
|
|
|
4,997
|
|
Net increase in
cash, cash equivalents and restricted cash
|
|
|
(21,867)
|
|
|
|
6,605
|
|
Cash, cash
equivalents and restricted cash at beginning of year
|
|
|
98,144
|
|
|
|
66,240
|
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$
|
76,277
|
|
|
$
|
72,845
|
|
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, 2018
and 2017.
|
|
|
|
Three Months Ended
June 30,
|
|
|
|
|
|
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
$
Change
|
|
|
%
Change
|
|
Domestic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
213,638
|
|
|
$
|
158,073
|
|
|
$
|
55,565
|
|
|
|
35.2
|
%
|
Cost of
revenue
|
|
|
102,206
|
|
|
|
67,393
|
|
|
|
34,813
|
|
|
|
51.7
|
|
Gross
profit
|
|
$
|
111,432
|
|
|
$
|
90,680
|
|
|
$
|
20,752
|
|
|
|
22.9
|
|
Gross profit
margin
|
|
|
52.2
|
%
|
|
|
57.4
|
%
|
|
|
(5.2)
|
%
|
|
|
(9.1)
|
%
|
International:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
39,663
|
|
|
$
|
31,831
|
|
|
$
|
7,832
|
|
|
|
24.6
|
%
|
Cost of
revenue
|
|
|
19,288
|
|
|
|
12,469
|
|
|
|
6,819
|
|
|
|
54.7
|
|
Gross
profit
|
|
$
|
20,375
|
|
|
$
|
19,362
|
|
|
$
|
1,013
|
|
|
|
5.2
|
|
Gross profit
margin
|
|
|
51.4
|
%
|
|
|
60.8
|
%
|
|
|
(9.4)
|
%
|
|
|
(15.5)
|
%
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
253,301
|
|
|
$
|
189,904
|
|
|
$
|
63,397
|
|
|
|
33.4
|
%
|
Cost of
revenue
|
|
|
121,494
|
|
|
|
79,862
|
|
|
|
41,632
|
|
|
|
52.1
|
|
Gross
profit
|
|
$
|
131,807
|
|
|
$
|
110,042
|
|
|
$
|
21,765
|
|
|
|
19.8
|
|
Gross profit
margin
|
|
|
52.0
|
%
|
|
|
57.9
|
%
|
|
|
(5.9)
|
%
|
|
|
(10.2)
|
%
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
|
|
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
$
Change
|
|
|
%
Change
|
|
Domestic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
426,604
|
|
|
$
|
322,742
|
|
|
$
|
103,862
|
|
|
|
32.2
|
%
|
Cost of
revenue
|
|
|
190,319
|
|
|
|
138,042
|
|
|
|
52,277
|
|
|
|
37.9
|
|
Gross
profit
|
|
$
|
236,285
|
|
|
$
|
184,700
|
|
|
$
|
51,585
|
|
|
|
27.9
|
|
Gross profit
margin
|
|
|
55.4
|
%
|
|
|
57.2
|
%
|
|
|
(1.8)
|
%
|
|
|
(3.1)
|
%
|
International:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
80,995
|
|
|
$
|
59,425
|
|
|
$
|
21,570
|
|
|
|
36.3
|
%
|
Cost of
revenue
|
|
|
39,728
|
|
|
|
23,704
|
|
|
|
16,024
|
|
|
|
67.6
|
|
Gross
profit
|
|
$
|
41,267
|
|
|
$
|
35,721
|
|
|
$
|
5,546
|
|
|
|
15.5
|
|
Gross profit
margin
|
|
|
51.0
|
%
|
|
|
60.1
|
%
|
|
|
(9.1)
|
%
|
|
|
(15.1)
|
%
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
507,599
|
|
|
$
|
382,167
|
|
|
$
|
125,432
|
|
|
|
32.8
|
%
|
Cost of
revenue
|
|
|
230,047
|
|
|
|
161,746
|
|
|
|
68,301
|
|
|
|
42.2
|
|
Gross
profit
|
|
$
|
277,552
|
|
|
$
|
220,421
|
|
|
$
|
57,131
|
|
|
|
25.9
|
|
Gross profit
margin
|
|
|
54.7
|
%
|
|
|
57.7
|
%
|
|
|
(3.0)
|
%
|
|
|
(5.2)
|
%
|
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, 2018 and 2017.
|
|
Three Months Ended
June 30,
|
|
2018
|
|
|
2017
|
|
|
Change
|
|
Cost of
revenue
|
|
$
|
121,494
|
|
|
$
|
79,862
|
|
|
$
|
41,632
|
|
Charge-offs (net of
recoveries)
|
|
|
111,785
|
|
|
|
78,768
|
|
|
|
33,017
|
|
Average combined
loans and finance receivables, gross:
|
|
|
|
|
|
|
|
|
|
|
|
|
Company
owned(a)
|
|
|
840,077
|
|
|
|
619,699
|
|
|
|
220,378
|
|
Guaranteed by
Enova(a)(b)
|
|
|
28,138
|
|
|
|
24,999
|
|
|
|
3,139
|
|
Average combined
loans and finance receivables,
gross (a)(c)
|
|
$
|
868,215
|
|
|
$
|
644,698
|
|
|
$
|
223,517
|
|
Ending combined
loans and finance receivables, gross:
|
|
|
|
|
|
|
|
|
|
|
|
|
Company
owned
|
|
$
|
871,915
|
|
|
$
|
647,835
|
|
|
$
|
224,080
|
|
Guaranteed by
Enova(b)
|
|
|
28,681
|
|
|
|
28,013
|
|
|
|
668
|
|
Ending combined
loans and finance receivables, gross (c)
|
|
$
|
900,596
|
|
|
$
|
675,848
|
|
|
$
|
224,748
|
|
Ending allowance and
liability for losses
|
|
$
|
123,876
|
|
|
$
|
85,780
|
|
|
$
|
38,096
|
|
Combined originations
(d)
|
|
$
|
599,280
|
|
|
$
|
512,546
|
|
|
$
|
86,734
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and finance
receivables ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue as a
% of average combined loans and finance receivables,
gross(a)(c)
|
|
|
14.0
|
%
|
|
|
12.4
|
%
|
|
|
1.6
|
%
|
Charge-offs (net of
recoveries) as a % of average combined loans and finance
receivables, gross(a)(c)
|
|
|
12.9
|
%
|
|
|
12.2
|
%
|
|
|
0.7
|
%
|
Gross profit
margin
|
|
|
52.0
|
%
|
|
|
57.9
|
%
|
|
|
(5.9)
|
%
|
Allowance and
liability for losses as a % of combined loans and finance
receivables, gross(c)(e)
|
|
|
13.8
|
%
|
|
|
12.7
|
%
|
|
|
1.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(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 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
|
|
|
Six Months
Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Net Income
|
|
$
|
18,225
|
|
|
$
|
11,873
|
|
|
$
|
46,123
|
|
|
$
|
25,725
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on early
extinguishment of debt(a)
|
|
|
—
|
|
|
|
—
|
|
|
|
4,710
|
|
|
|
—
|
|
Intangible asset
amortization
|
|
|
268
|
|
|
|
271
|
|
|
|
535
|
|
|
|
542
|
|
Stock-based
compensation expense
|
|
|
2,834
|
|
|
|
2,987
|
|
|
|
5,267
|
|
|
|
5,307
|
|
Foreign currency
transaction loss (gain)
|
|
|
204
|
|
|
|
(62)
|
|
|
|
2,292
|
|
|
|
(289)
|
|
Cumulative tax effect
of adjustments
|
|
|
(777)
|
|
|
|
(1,113)
|
|
|
|
(2,756)
|
|
|
|
(1,923)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
earnings
|
|
$
|
20,754
|
|
|
$
|
13,956
|
|
|
$
|
56,171
|
|
|
$
|
29,362
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
|
0.52
|
|
|
$
|
0.35
|
|
|
$
|
1.32
|
|
|
$
|
0.75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share
|
|
$
|
0.59
|
|
|
$
|
0.41
|
|
|
$
|
1.61
|
|
|
$
|
0.86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Net Income
|
|
$
|
18,225
|
|
|
$
|
11,873
|
|
|
$
|
46,123
|
|
|
$
|
25,725
|
|
Depreciation and
amortization expenses
|
|
|
3,837
|
|
|
|
3,366
|
|
|
|
7,675
|
|
|
|
6,863
|
|
Interest expense,
net
|
|
|
19,355
|
|
|
|
17,012
|
|
|
|
39,028
|
|
|
|
34,234
|
|
Foreign currency
transaction loss (gain)
|
|
|
204
|
|
|
|
(62)
|
|
|
|
2,292
|
|
|
|
(289)
|
|
Provision for income
taxes
|
|
|
5,310
|
|
|
|
6,380
|
|
|
|
12,653
|
|
|
|
13,605
|
|
Stock-based
compensation expense
|
|
|
2,834
|
|
|
|
2,987
|
|
|
|
5,267
|
|
|
|
5,307
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on early
extinguishment of debt(a)
|
|
|
—
|
|
|
|
—
|
|
|
|
4,710
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
49,765
|
|
|
$
|
41,556
|
|
|
$
|
117,748
|
|
|
$
|
85,445
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
margin calculated as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Revenue
|
|
$
|
253,301
|
|
|
$
|
189,904
|
|
|
$
|
507,599
|
|
|
$
|
382,167
|
|
Adjusted
EBITDA
|
|
|
49,765
|
|
|
|
41,556
|
|
|
|
117,748
|
|
|
|
85,445
|
|
Adjusted EBITDA as a
percentage of total revenue
|
|
|
19.6
|
%
|
|
|
21.9
|
%
|
|
|
23.2
|
%
|
|
|
22.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
In the first
quarter of 2018, the Company recorded a $4.7 million ($3.7 million
net of tax) loss on early extinguishment of debt related to the
repurchase of $50.0 million principal amount of senior
notes.
|
ENOVA
INTERNATIONAL, INC. AND SUBSIDIARIES
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
(dollars in
thousands)
|
|
Estimated Adjusted
EBITDA and Earnings Per Share For 2018
|
|
|
|
|
The following tables
reconcile estimated Income from operations to Adjusted EBITDA, a
non-GAAP measure and diluted income per share to adjusted earnings
per share, a non-GAAP measure:
|
|
|
|
Estimated
Results
|
|
|
|
Three Months Ended
September 30, 2018
|
|
|
|
Low
|
|
|
High
|
|
|
|
Unaudited
|
|
Income from
operations
|
|
$
|
33,100
|
|
|
$
|
43,100
|
|
Depreciation and
amortization
|
|
|
3,900
|
|
|
|
3,900
|
|
Stock-based
compensation expense
|
|
|
3,000
|
|
|
|
3,000
|
|
Adjusted
EBITDA
|
|
$
|
40,000
|
|
|
$
|
50,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated
Results
|
|
|
|
Year Ended
December 31, 2018
|
|
|
|
Low
|
|
|
High
|
|
|
|
Unaudited
|
|
Income from
operations
|
|
$
|
167,800
|
|
|
$
|
187,800
|
|
Depreciation and
amortization
|
|
|
15,600
|
|
|
|
15,600
|
|
Stock-based
compensation expense
|
|
|
11,600
|
|
|
|
11,600
|
|
Adjusted
EBITDA
|
|
$
|
195,000
|
|
|
$
|
215,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated
Results
|
|
|
|
Three Months Ended
September 30, 2018
|
|
|
|
Low
|
|
|
High
|
|
|
|
Unaudited
|
|
Diluted income per
share
|
|
$
|
0.30
|
|
|
$
|
0.52
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
|
|
0.01
|
|
|
|
0.01
|
|
Stock-based
compensation expense
|
|
|
0.08
|
|
|
|
0.08
|
|
Cumulative tax effect
of adjustments
|
|
|
(0.02)
|
|
|
|
(0.03)
|
|
Adjusted earnings per
share
|
|
$
|
0.37
|
|
|
$
|
0.58
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated
Results
|
|
|
|
Year Ended
December 31, 2018
|
|
|
|
Low
|
|
|
High
|
|
|
|
Unaudited
|
|
Diluted income per
share
|
|
$
|
1.78
|
|
|
$
|
2.22
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Loss on early
extinguishment of debt
|
|
|
0.13
|
|
|
|
0.13
|
|
Intangible asset
amortization
|
|
|
0.03
|
|
|
|
0.03
|
|
Stock-based
compensation expense
|
|
|
0.33
|
|
|
|
0.33
|
|
Foreign currency
transaction gain
|
|
|
0.06
|
|
|
|
0.06
|
|
Cumulative tax effect
of adjustments
|
|
|
(0.14)
|
|
|
|
(0.14)
|
|
Adjusted earnings per
share
|
|
$
|
2.19
|
|
|
$
|
2.63
|
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/enova-reports-second-quarter-2018-results-300687380.html
SOURCE Enova International, Inc.