CHICAGO, Oct. 24, 2019 /PRNewswire/ -- Enova International
(NYSE: ENVA), a leading financial technology and analytics
company offering consumer and small business loans and
financing, today announced financial results for the quarter
ended September 30, 2019.
"The third quarter continued our record of strong performance
and reflects our ability to effectively manage our portfolio of
businesses to deliver results," said David
Fisher, Enova's CEO. "Our solid performance was driven by
continued strong demand in our domestic products, stable credit and
strong execution. We remain well positioned to deliver on our
commitment of balanced growth and profitability and remain
optimistic about our ability to sustain the momentum in our
business through the rest of 2019 and into 2020."
Enova also announced today it intends to exit the U.K. market in
Q4. Enova anticipates it will record a one-time after-tax charge of
approximately $74 million, including
one-time cash charges of approximately $43
million to support cessation of U.K. lending activities.
"Over the past several months, we worked with our U.K. regulator
to agree upon a sustainable solution to the elevated complaints to
the U.K. Financial Ombudsman, which would enable us to continue
providing access to credit for hardworking Britons," said Fisher.
"While we are disappointed that we could not ultimately find a path
forward, the decision to exit the U.K. market is the right one for
Enova and our shareholders. Looking ahead, we believe that our
diversified product offerings provide meaningful growth as we
allocate our resources where we see the greatest
opportunities."
Third Quarter 2019 Summary
- Total revenue of $330 million in
the third quarter of 2019 increased 12% from $294 million in the third quarter of 2018.
- Gross profit margin was 48.0% in the third quarter of 2019,
compared to 44.3% in the third quarter of 2018.
- Net income of $27 million, or
$0.78 per diluted share, in the third
quarter of 2019 increased from $15
million, or $0.43 per diluted
share, in the third quarter of 2018.
- Third quarter 2019 adjusted EBITDA of $62 million, a non-GAAP measure, increased from
$44 million in the third quarter of
2018.
- Adjusted earnings of $30 million,
or $0.86 per diluted share, a
non-GAAP measure, in the third quarter of 2019 increased from
adjusted earnings of $16 million, or
$0.46 per diluted share, in the third
quarter of 2018.
"We are pleased to report another solid quarter of financial
results that met or exceeded our expectations," said Steve Cunningham, CFO of Enova. "Our strong
analytics are driving stable and predictable credit performance as
we continue to originate receivables from new customers at a record
pace. In addition, our diversified and flexible financing is
driving our cost of funds lower and leaves us well positioned to
capitalize on the future growth opportunities ahead of us."
Enova ended the third quarter of 2019 with unrestricted cash and
cash equivalents of $70 million. As of September 30, 2019, the company had total debt
outstanding of $874 million, which
included $184 million outstanding
under Enova's $350 million securitization facilities.
During the third quarter, Enova generated $191 million of
cash flow from operations.
On October 22, the Board of
Directors authorized a new share repurchase program totaling
$75 million that expires December 31, 2020. The new program replaces the
prior authorization of $50 million.
Year-to-date through October 22, the
company acquired 310,000 shares at a cost of $6.4 million under the previous share repurchase
program.
Outlook
For the fourth quarter of 2019, excluding U.K. operations and
related one-time charges as a result of the planned exit, Enova
expects total revenue of $329 million
to $344 million, adjusted EBITDA of
$68 million to $78 million and adjusted earnings per share of
$0.94 to $1.15. GAAP diluted loss per share for the
fourth quarter of 2019, which includes the U.K. operations, is
expected to be ($0.70) to
($0.49).
Enova's outlook for the full year 2019 excludes U.K. operations
and related one-time charges for the full year as a result of the
planned exit. For comparability, the company is also providing
the previous outlook for the full year 2019 total revenue, adjusted
EBITDA and adjusted earnings per share excluding U.K.
operations.
For the full year 2019, Enova now expects total revenue of
$1.158 billion to $1.173 billion versus previous guidance of
$1.145 billion to $1.185 billion; adjusted EBITDA of $278 million to $288
million versus previous guidance of $273 million to $293
million; and adjusted earnings per share of $4.13 to $4.34
versus previous guidance of $4.00 to
$4.44. GAAP diluted earnings per
share for the full year 2019, which includes the U.K. operations,
is expected to be $1.82 to
$2.03 versus previous guidance of
$3.13 to $3.57.
Please see the "Supplemental Financial Information" for the
third quarter 2019 on Enova's investor relations website for
additional details of the company's historical financial results
excluding U.K. operations.
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, October 24th.
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 October 31, 2019, 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 10135835.
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 6 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®,
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
The combined loans and finance receivables measures are non-GAAP
measures that include loans and finance receivables that Enova owns
or has purchased and loans that Enova guarantees. Management
believes these non-GAAP measures provide investors with important
information needed to evaluate the magnitude of potential
receivable losses and the opportunity for revenue performance of
the loans and finance receivable portfolio on an aggregate basis.
Management also believes that the comparison of the aggregate
amounts from period to period is more meaningful than comparing
only the amounts reflected on Enova's consolidated balance sheet
since both revenue and cost of revenue are impacted by the
aggregate amount of receivables owned by Enova and those guaranteed
by Enova as reflected in its consolidated financial statements.
Adjusted Earnings Measures
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
each of these expense items.
Adjusted EBITDA Measures
In addition to reporting financial results in accordance with GAAP,
Enova has provided Adjusted EBITDA and Adjusted EBITDA margin, or,
collectively, the Adjusted EBITDA measures, which are non-GAAP
measures. 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. In addition, management believes that the adjustments
for lease termination and cease-use costs and losses on early
extinguishment of debt shown below are useful to investors in order
to allow them to compare our financial results during the periods
shown without the effect of the expense items. Adjusted EBITDA
margin is a non-GAAP measure that Enova defines as Adjusted EBITDA
as a percentage of total revenue. Management believes Adjusted
EBITDA Measures 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 Measures are also useful to investors to help assess Enova's
estimated enterprise value.
ENOVA
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(dollars in
thousands, except per share data)
|
(Unaudited)
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
2018
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents(1)
|
|
$
|
69,945
|
|
|
$
|
164,122
|
|
|
$
|
52,917
|
|
Restricted
cash(1)
|
|
|
20,719
|
|
|
|
20,897
|
|
|
|
24,342
|
|
Loans and finance
receivables, net(1)
|
|
|
1,001,154
|
|
|
|
838,783
|
|
|
|
859,946
|
|
Income taxes
receivable
|
|
|
12,727
|
|
|
|
45,639
|
|
|
|
28,914
|
|
Other receivables and
prepaid expenses(1)
|
|
|
39,549
|
|
|
|
25,699
|
|
|
|
29,983
|
|
Property and
equipment, net
|
|
|
54,951
|
|
|
|
48,514
|
|
|
|
49,553
|
|
Operating lease
right-of-use assets
|
|
|
20,260
|
|
|
|
—
|
|
|
|
—
|
|
Goodwill
|
|
|
267,013
|
|
|
|
267,013
|
|
|
|
267,013
|
|
Intangible assets,
net
|
|
|
2,452
|
|
|
|
3,523
|
|
|
|
3,255
|
|
Other
assets(1)
|
|
|
11,907
|
|
|
|
12,078
|
|
|
|
12,262
|
|
Total
assets
|
|
$
|
1,500,677
|
|
|
$
|
1,426,268
|
|
|
$
|
1,328,185
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued expenses(1)
|
|
$
|
122,212
|
|
|
$
|
76,188
|
|
|
$
|
89,317
|
|
Operating lease
liabilities
|
|
|
36,770
|
|
|
|
—
|
|
|
|
—
|
|
Deferred tax
liabilities, net
|
|
|
33,980
|
|
|
|
46,321
|
|
|
|
33,171
|
|
Long-term
debt(1)
|
|
|
873,744
|
|
|
|
951,091
|
|
|
|
857,929
|
|
Total
liabilities
|
|
|
1,066,706
|
|
|
|
1,073,600
|
|
|
|
980,417
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, $0.00001
par value, 250,000,000 shares authorized, 35,751,763, 34,764,648
and 34,856,553 shares issued and 33,988,030, 34,274,785 and
33,584,606 outstanding as of September 30, 2019 and 2018
and December 31, 2018, respectively
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Preferred stock,
$0.00001 par value, 25,000,000 shares authorized, no shares issued
and outstanding
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Additional paid in
capital
|
|
|
61,477
|
|
|
|
44,657
|
|
|
|
48,175
|
|
Retained
earnings
|
|
|
423,234
|
|
|
|
327,744
|
|
|
|
336,415
|
|
Accumulated other
comprehensive loss
|
|
|
(17,158)
|
|
|
|
(12,468)
|
|
|
|
(13,805)
|
|
Treasury stock, at
cost (1,763,733, 489,863 and 1,271,947 shares as of
September 30, 2019 and 2018 and
December 31, 2018, respectively)
|
|
|
(33,582)
|
|
|
|
(7,265)
|
|
|
|
(23,017)
|
|
Total stockholders'
equity
|
|
|
433,971
|
|
|
|
352,668
|
|
|
|
347,768
|
|
Total liabilities and
stockholders' equity
|
|
$
|
1,500,677
|
|
|
$
|
1,426,268
|
|
|
$
|
1,328,185
|
|
|
|
|
|
|
|
(1)
|
Includes amounts in
wholly owned, bankruptcy-remote special purpose subsidiaries
("VIEs") presented separately in the table below.
|
ENOVA
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(dollars in
thousands, except per share data)
|
(Unaudited)
|
|
The following table
presents the aggregated assets and liabilities of consolidated
VIEs, which are included in the Consolidated Balance Sheets above.
The assets in the table below may only be used to settle
obligations of consolidated VIEs and are in excess of those
obligations.
|
|
|
|
September 30,
|
|
|
December
31,
|
|
|
|
2019
|
|
|
2018
|
|
|
2018
|
|
Assets of
consolidated VIEs, included in total assets above
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
420
|
|
|
$
|
120
|
|
|
$
|
210
|
|
Restricted
cash
|
|
|
18,618
|
|
|
|
18,678
|
|
|
|
22,168
|
|
Loans and finance
receivables, net (includes allowance for losses of $34,509, $28,096
and $27,255 as of September 30, 2019 and 2018 and
December 31, 2018, respectively)
|
|
|
340,034
|
|
|
|
291,673
|
|
|
|
318,961
|
|
Other receivables and
prepaid expenses
|
|
|
9,236
|
|
|
|
2,381
|
|
|
|
2,712
|
|
Other
assets
|
|
|
2,346
|
|
|
|
2,228
|
|
|
|
2,544
|
|
Total
assets
|
|
$
|
370,654
|
|
|
$
|
315,080
|
|
|
$
|
346,595
|
|
Liabilities of
consolidated VIEs, included in total liabilities
above
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$
|
3,300
|
|
|
$
|
2,514
|
|
|
$
|
3,087
|
|
Long-term
debt
|
|
|
234,666
|
|
|
|
224,559
|
|
|
|
223,368
|
|
Total
liabilities
|
|
$
|
237,966
|
|
|
$
|
227,073
|
|
|
$
|
226,455
|
|
ENOVA
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(in thousands,
except per share data)
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
Revenue
|
|
$
|
329,513
|
|
|
$
|
293,879
|
|
|
$
|
908,396
|
|
|
$
|
801,478
|
|
Cost of
Revenue
|
|
|
171,266
|
|
|
|
163,763
|
|
|
|
448,608
|
|
|
|
393,810
|
|
Gross
Profit
|
|
|
158,247
|
|
|
|
130,116
|
|
|
|
459,788
|
|
|
|
407,668
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing
|
|
|
36,993
|
|
|
|
36,011
|
|
|
|
92,559
|
|
|
|
93,133
|
|
Operations and
technology
|
|
|
34,310
|
|
|
|
28,260
|
|
|
|
96,321
|
|
|
|
80,993
|
|
General and
administrative
|
|
|
28,787
|
|
|
|
24,360
|
|
|
|
87,236
|
|
|
|
79,576
|
|
Depreciation and
amortization
|
|
|
3,716
|
|
|
|
3,688
|
|
|
|
11,842
|
|
|
|
11,363
|
|
Total
Expenses
|
|
|
103,806
|
|
|
|
92,319
|
|
|
|
287,958
|
|
|
|
265,065
|
|
Income from
Operations
|
|
|
54,441
|
|
|
|
37,797
|
|
|
|
171,830
|
|
|
|
142,603
|
|
Interest expense,
net
|
|
|
(18,232)
|
|
|
|
(20,244)
|
|
|
|
(55,847)
|
|
|
|
(59,272)
|
|
Foreign currency
transaction (loss) gain
|
|
|
(12)
|
|
|
|
27
|
|
|
|
(193)
|
|
|
|
(2,265)
|
|
Loss on early
extinguishment of debt
|
|
|
—
|
|
|
|
(12,469)
|
|
|
|
(2,321)
|
|
|
|
(17,179)
|
|
Income before
Income Taxes
|
|
|
36,197
|
|
|
|
5,111
|
|
|
|
113,469
|
|
|
|
63,887
|
|
Provision for (benefit
from) income taxes
|
|
|
9,112
|
|
|
|
(10,193)
|
|
|
|
26,304
|
|
|
|
2,460
|
|
Net
Income
|
|
$
|
27,085
|
|
|
$
|
15,304
|
|
|
$
|
87,165
|
|
|
$
|
61,427
|
|
Earnings Per
Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.80
|
|
|
$
|
0.45
|
|
|
$
|
2.58
|
|
|
$
|
1.81
|
|
Diluted
|
|
$
|
0.78
|
|
|
$
|
0.43
|
|
|
$
|
2.53
|
|
|
$
|
1.75
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
33,997
|
|
|
|
34,168
|
|
|
|
33,770
|
|
|
|
33,938
|
|
Diluted
|
|
|
34,577
|
|
|
|
35,665
|
|
|
|
34,492
|
|
|
|
35,200
|
|
ENOVA
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW
|
(dollars in
thousands)
|
(Unaudited)
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
2019
|
|
|
2018
|
|
Cash flows
provided by operating activities
|
|
$
|
605,905
|
|
|
$
|
468,160
|
|
Cash flows used in
investing activities
|
|
|
|
|
|
|
|
|
Loans and finance
receivables
|
|
|
(570,532)
|
|
|
|
(505,938)
|
|
Property and equipment
additions
|
|
|
(16,459)
|
|
|
|
(11,303)
|
|
Other investing
activities
|
|
|
4
|
|
|
|
93
|
|
Total cash flows
used in investing activities
|
|
|
(586,987)
|
|
|
|
(517,148)
|
|
Cash flows
provided by financing activities
|
|
|
2,616
|
|
|
|
141,234
|
|
Effect of exchange
rates on cash, cash equivalents and restricted cash
|
|
|
(8,129)
|
|
|
|
(5,371)
|
|
Net increase in
cash, cash equivalents and restricted cash
|
|
|
13,405
|
|
|
|
86,875
|
|
Cash, cash
equivalents and restricted cash at beginning of year
|
|
|
77,259
|
|
|
|
98,144
|
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$
|
90,664
|
|
|
$
|
185,019
|
|
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 nine months ended September 30,
2019 and 2018.
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
|
|
|
|
|
|
|
|
2019
|
|
|
2018
|
|
|
$
Change
|
|
|
%
Change
|
|
Domestic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
300,609
|
|
|
$
|
251,054
|
|
|
$
|
49,555
|
|
|
|
19.7
|
%
|
Cost of
revenue
|
|
|
161,104
|
|
|
|
142,702
|
|
|
|
18,402
|
|
|
|
12.9
|
|
Gross
profit
|
|
$
|
139,505
|
|
|
$
|
108,352
|
|
|
$
|
31,153
|
|
|
|
28.8
|
|
Gross profit
margin
|
|
|
46.4
|
%
|
|
|
43.2
|
%
|
|
|
3.2
|
%
|
|
|
7.4
|
%
|
International:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
28,904
|
|
|
$
|
42,825
|
|
|
$
|
(13,921)
|
|
|
|
(32.5)
|
%
|
Cost of
revenue
|
|
|
10,162
|
|
|
|
21,061
|
|
|
|
(10,899)
|
|
|
|
(51.7)
|
|
Gross
profit
|
|
$
|
18,742
|
|
|
$
|
21,764
|
|
|
$
|
(3,022)
|
|
|
|
(13.9)
|
|
Gross profit
margin
|
|
|
64.8
|
%
|
|
|
50.8
|
%
|
|
|
14.0
|
%
|
|
|
27.6
|
%
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
329,513
|
|
|
$
|
293,879
|
|
|
$
|
35,634
|
|
|
|
12.1
|
%
|
Cost of
revenue
|
|
|
171,266
|
|
|
|
163,763
|
|
|
|
7,503
|
|
|
|
4.6
|
|
Gross
profit
|
|
$
|
158,247
|
|
|
$
|
130,116
|
|
|
$
|
28,131
|
|
|
|
21.6
|
|
Gross profit
margin
|
|
|
48.0
|
%
|
|
|
44.3
|
%
|
|
|
3.7
|
%
|
|
|
8.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
|
|
|
|
|
|
|
|
2019
|
|
|
2018
|
|
|
$
Change
|
|
|
%
Change
|
|
Domestic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
812,802
|
|
|
$
|
677,658
|
|
|
$
|
135,144
|
|
|
|
19.9
|
%
|
Cost of
revenue
|
|
|
396,344
|
|
|
|
333,021
|
|
|
|
63,323
|
|
|
|
19.0
|
|
Gross
profit
|
|
$
|
416,458
|
|
|
$
|
344,637
|
|
|
$
|
71,821
|
|
|
|
20.8
|
|
Gross profit
margin
|
|
|
51.2
|
%
|
|
|
50.9
|
%
|
|
|
0.3
|
%
|
|
|
0.6
|
%
|
International:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
95,594
|
|
|
$
|
123,820
|
|
|
$
|
(28,226)
|
|
|
|
(22.8)
|
%
|
Cost of
revenue
|
|
|
52,264
|
|
|
|
60,789
|
|
|
|
(8,525)
|
|
|
|
(14.0)
|
|
Gross
profit
|
|
$
|
43,330
|
|
|
$
|
63,031
|
|
|
$
|
(19,701)
|
|
|
|
(31.3)
|
|
Gross profit
margin
|
|
|
45.3
|
%
|
|
|
50.9
|
%
|
|
|
(5.6)
|
%
|
|
|
(11.0)
|
%
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
908,396
|
|
|
$
|
801,478
|
|
|
$
|
106,918
|
|
|
|
13.3
|
%
|
Cost of
revenue
|
|
|
448,608
|
|
|
|
393,810
|
|
|
|
54,798
|
|
|
|
13.9
|
|
Gross
profit
|
|
$
|
459,788
|
|
|
$
|
407,668
|
|
|
$
|
52,120
|
|
|
|
12.8
|
|
Gross profit
margin
|
|
|
50.6
|
%
|
|
|
50.9
|
%
|
|
|
(0.3)
|
%
|
|
|
(0.6)
|
%
|
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 September 30, 2019 and 2018.
|
|
Three Months Ended
September 30,
|
|
2019
|
|
|
2018
|
|
|
Change
|
|
Cost of
revenue
|
|
$
|
171,266
|
|
|
$
|
163,763
|
|
|
$
|
7,503
|
|
Charge-offs (net of
recoveries)
|
|
|
153,271
|
|
|
|
133,417
|
|
|
|
19,854
|
|
Average combined
loans and finance receivables, gross:
|
|
|
|
|
|
|
|
|
|
|
|
|
Company
owned(a)
|
|
|
1,117,067
|
|
|
|
937,573
|
|
|
|
179,494
|
|
Guaranteed by
Enova(a)(b)
|
|
|
23,031
|
|
|
|
30,238
|
|
|
|
(7,207)
|
|
Average combined
loans and finance receivables,
gross (a)(c)
|
|
$
|
1,140,098
|
|
|
$
|
967,811
|
|
|
$
|
172,287
|
|
Ending combined
loans and finance receivables, gross:
|
|
|
|
|
|
|
|
|
|
|
|
|
Company
owned
|
|
$
|
1,173,538
|
|
|
$
|
990,368
|
|
|
$
|
183,170
|
|
Guaranteed by
Enova(b)
|
|
|
23,648
|
|
|
|
30,106
|
|
|
|
(6,458)
|
|
Ending combined
loans and finance receivables, gross (c)
|
|
$
|
1,197,186
|
|
|
$
|
1,020,474
|
|
|
$
|
176,712
|
|
Ending allowance and
liability for losses
|
|
$
|
174,087
|
|
|
$
|
153,829
|
|
|
$
|
20,258
|
|
Combined originations
(d)
|
|
$
|
681,974
|
|
|
$
|
697,690
|
|
|
$
|
(15,716)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and finance
receivables ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue as a
% of average combined loans and finance receivables,
gross(a)(c)
|
|
|
15.0
|
%
|
|
|
16.9
|
%
|
|
|
(1.9)
|
%
|
Charge-offs (net of
recoveries) as a % of average combined loans and finance
receivables, gross(a)(c)
|
|
|
13.4
|
%
|
|
|
13.8
|
%
|
|
|
(0.4)
|
%
|
Gross profit
margin
|
|
|
48.0
|
%
|
|
|
44.3
|
%
|
|
|
3.7
|
%
|
Allowance and
liability for losses as a % of combined loans and finance
receivables, gross(c)(e)
|
|
|
14.5
|
%
|
|
|
15.1
|
%
|
|
|
(0.6)
|
%
|
|
|
|
|
|
|
(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), 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
|
|
|
Nine Months
Ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
Net Income
|
|
$
|
27,085
|
|
|
$
|
15,304
|
|
|
$
|
87,165
|
|
|
$
|
61,427
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease termination and
cease-use costs(a)
|
|
|
—
|
|
|
|
—
|
|
|
|
726
|
|
|
|
—
|
|
Loss on early
extinguishment of debt(b)
|
|
|
—
|
|
|
|
12,469
|
|
|
|
2,321
|
|
|
|
17,179
|
|
Intangible asset
amortization
|
|
|
268
|
|
|
|
268
|
|
|
|
803
|
|
|
|
803
|
|
Stock-based
compensation expense
|
|
|
3,387
|
|
|
|
2,882
|
|
|
|
9,784
|
|
|
|
8,149
|
|
Foreign currency
transaction loss (gain)
|
|
|
12
|
|
|
|
(27)
|
|
|
|
193
|
|
|
|
2,265
|
|
Cumulative tax effect
of adjustments
|
|
|
(853)
|
|
|
|
(3,332)
|
|
|
|
(3,215)
|
|
|
|
(6,088)
|
|
Discrete tax
adjustments(c)
|
|
|
—
|
|
|
|
(11,237)
|
|
|
|
(141)
|
|
|
|
(11,237)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
earnings
|
|
$
|
29,899
|
|
|
$
|
16,327
|
|
|
$
|
97,636
|
|
|
$
|
72,498
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
|
0.78
|
|
|
$
|
0.43
|
|
|
$
|
2.53
|
|
|
$
|
1.75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share
|
|
$
|
0.86
|
|
|
$
|
0.46
|
|
|
$
|
2.83
|
|
|
$
|
2.06
|
|
|
Adjusted
EBITDA
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
Net Income
|
|
$
|
27,085
|
|
|
$
|
15,304
|
|
|
$
|
87,165
|
|
|
$
|
61,427
|
|
Depreciation and
amortization expenses
|
|
|
3,716
|
|
|
|
3,688
|
|
|
|
11,842
|
|
|
|
11,363
|
|
Interest expense,
net
|
|
|
18,232
|
|
|
|
20,244
|
|
|
|
55,847
|
|
|
|
59,272
|
|
Foreign currency
transaction loss (gain)
|
|
|
12
|
|
|
|
(27)
|
|
|
|
193
|
|
|
|
2,265
|
|
Provision for (benefit
from) income taxes
|
|
|
9,112
|
|
|
|
(10,193)
|
|
|
|
26,304
|
|
|
|
2,460
|
|
Stock-based
compensation expense
|
|
|
3,387
|
|
|
|
2,882
|
|
|
|
9,784
|
|
|
|
8,149
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease termination and
cease-use costs(a)
|
|
|
—
|
|
|
|
—
|
|
|
|
370
|
|
|
|
—
|
|
Loss on early
extinguishment of debt(b)
|
|
|
—
|
|
|
|
12,469
|
|
|
|
2,321
|
|
|
|
17,179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
61,544
|
|
|
$
|
44,367
|
|
|
$
|
193,826
|
|
|
$
|
162,115
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
margin calculated as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Revenue
|
|
$
|
329,513
|
|
|
$
|
293,879
|
|
|
$
|
908,396
|
|
|
$
|
801,478
|
|
Adjusted
EBITDA
|
|
|
61,544
|
|
|
|
44,367
|
|
|
|
193,826
|
|
|
|
162,115
|
|
Adjusted EBITDA as a
percentage of total revenue
|
|
|
18.7
|
%
|
|
|
15.1
|
%
|
|
|
21.3
|
%
|
|
|
20.2
|
%
|
|
|
|
|
|
|
(a)
|
In the first
quarter of 2019, the Company recorded impairment charges of $0.4
million ($0.3 million net of tax) to operating right-of-use lease
assets and $0.3 million ($0.3 million net of tax) to leasehold
improvement assets related to its decision to cease use and
sublease a portion of a leased office space.
|
(b)
|
In the first
quarter of 2019 and the first quarter of 2018, the Company recorded
losses on early extinguishment of debt of $2.3 million ($1.8
million net of tax) and $4.7 million ($3.7 million net of tax),
respectively, related to the repurchase of $44.1 million principal
amount of securitization notes and the repurchase of $50.0 million
principal amount of senior notes .
|
(c)
|
In the first
quarter of 2019, the Company recognized $0.1 million of interest
income on a tax refund received as a result of the U.S. Tax Cuts
and Jobs Act.
|
ENOVA
INTERNATIONAL, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
|
(dollars in
thousands)
|
|
Estimated Adjusted
EBITDA and Earnings Per Share For 2019
|
|
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
December 31, 2019
|
|
|
|
Low
|
|
|
High
|
|
|
|
Unaudited
|
|
Income from
operations
|
|
$
|
59,900
|
|
|
$
|
69,900
|
|
Depreciation and
amortization
|
|
|
4,000
|
|
|
|
4,000
|
|
Stock-based
compensation expense
|
|
|
3,400
|
|
|
|
3,400
|
|
Discontinued
operations
|
|
|
700
|
|
|
|
700
|
|
Adjusted EBITDA
excluding discontinued operations
|
|
$
|
68,000
|
|
|
$
|
78,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated
Results
|
|
|
|
Year Ended
December 31, 2019
|
|
|
|
Low
|
|
|
High
|
|
|
|
Unaudited
|
|
Income from
operations
|
|
$
|
231,900
|
|
|
$
|
241,900
|
|
Depreciation and
amortization
|
|
|
15,800
|
|
|
|
15,800
|
|
Stock-based
compensation expense
|
|
|
13,200
|
|
|
|
13,200
|
|
Lease
termination
|
|
|
400
|
|
|
|
400
|
|
Discontinued
operations
|
|
|
16,700
|
|
|
|
16,700
|
|
Adjusted EBITDA
excluding discontinued operations
|
|
$
|
278,000
|
|
|
$
|
288,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated
Results
|
|
|
|
Three Months Ended
December 31, 2019
|
|
|
|
Low
|
|
|
High
|
|
|
|
Unaudited
|
|
Diluted income per
share
|
|
$
|
(0.70)
|
|
|
$
|
(0.49)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
|
|
0.01
|
|
|
|
0.01
|
|
Stock-based
compensation expense
|
|
|
0.10
|
|
|
|
0.10
|
|
After-tax additional
charge relating to discontinued operations
|
|
|
2.13
|
|
|
|
2.13
|
|
Cumulative tax effect
of adjustments
|
|
|
(0.62)
|
|
|
|
(0.62)
|
|
Discontinued
operations
|
|
|
0.02
|
|
|
|
0.02
|
|
Adjusted earnings per
share excluding discontinued operations
|
|
$
|
0.94
|
|
|
$
|
1.15
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated
Results
|
|
|
|
Year Ended
December 31, 2019
|
|
|
|
Low
|
|
|
High
|
|
|
|
Unaudited
|
|
Diluted income per
share
|
|
$
|
1.82
|
|
|
$
|
2.03
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Loss on early
extinguishment of debt
|
|
|
0.07
|
|
|
|
0.07
|
|
Intangible asset
amortization
|
|
|
0.03
|
|
|
|
0.03
|
|
Stock-based
compensation expense
|
|
|
0.38
|
|
|
|
0.38
|
|
Lease termination and
cease-use costs
|
|
|
0.02
|
|
|
|
0.02
|
|
After-tax additional
charge relating to discontinued operations
|
|
|
2.14
|
|
|
|
2.14
|
|
Cumulative tax effect
of adjustments
|
|
|
(0.70)
|
|
|
|
(0.70)
|
|
Discontinued
operations
|
|
|
0.37
|
|
|
|
0.37
|
|
Adjusted earnings per
share excluding discontinued operations
|
|
$
|
4.13
|
|
|
$
|
4.34
|
|
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SOURCE Enova International, Inc.