Delaware
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90-0934597
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(State or other jurisdiction
Of incorporation or organization)
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(I.R.S. Employer Identification No.)
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3527 North Ridge Road, Wichita, KS
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67205
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
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☐
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Accelerated filer
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☐
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Non-accelerated filer
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☒
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(Do not check if a smaller reporting company)
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Smaller reporting company
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☐
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Emerging growth company
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☒
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Page
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Item 1.
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Financial Statements (unaudited)
|
||||||
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|
||||||
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March 31, 2018 and December 31, 2017
|
||||||
|
|
||||||
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Three months ended March 31, 2018 and 2017
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||||||
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||||||
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Three months ended March 31, 2018 and 2017
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||||||
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||||||
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Three months ended March 31, 2018 and 2017
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||||||
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|||||||
Item 2.
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|||||||
Item 3.
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|||||||
Item 4.
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|||||||
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|||||||
Item 1.
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|||||||
Item 1A.
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|||||||
Item 2.
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|||||||
Item 3.
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|||||||
Item 4.
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|||||||
Item 5.
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|||||||
Item 6.
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March 31,
2018 |
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December 31,
2017 |
||||
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(Unaudited)
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|
|
||||
ASSETS
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|||||||
Cash
|
$
|
130,739
|
|
|
$
|
162,374
|
|
Restricted cash (includes restricted cash of consolidated VIEs of $12,268 and $6,871 as of March 31, 2018 and December 31, 2017, respectively)
|
17,656
|
|
|
12,117
|
|
||
Gross loans receivable (includes loans of consolidated VIEs of $186,492 and $213,846 as of March 31, 2018 and December 31, 2017, respectively)
|
389,838
|
|
|
432,837
|
|
||
Less: allowance for loan losses (includes loans of consolidated VIEs of $36,619 and $46,140 as of March 31, 2018 and December 31, 2017, respectively)
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(60,886
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)
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|
(69,568
|
)
|
||
Loans receivable, net
|
328,952
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|
|
363,269
|
|
||
Deferred income taxes
|
1,817
|
|
|
772
|
|
||
Income taxes receivable
|
—
|
|
|
3,455
|
|
||
Prepaid expenses and other
|
32,753
|
|
|
42,512
|
|
||
Property and equipment, net
|
83,522
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|
|
87,086
|
|
||
Goodwill
|
145,764
|
|
|
145,607
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|
||
Other intangibles, net of accumulated amortization of $42,540 and $41,156
as of March 31, 2018 and December 31, 2017, respectively)
|
31,961
|
|
|
32,769
|
|
||
Other
|
12,217
|
|
|
9,770
|
|
||
Total Assets
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$
|
785,381
|
|
|
$
|
859,731
|
|
LIABILITIES AND STOCKHOLDER’S EQUITY
|
|||||||
Accounts payable and accrued liabilities
|
$
|
52,860
|
|
|
$
|
55,792
|
|
Deferred revenue
|
10,152
|
|
|
11,984
|
|
||
Income taxes payable
|
8,734
|
|
|
4,120
|
|
||
Accrued interest (includes accrued interest of consolidated VIEs of $1,263 and $1,266 as of March 31, 2018 and December 31, 2017, respectively)
|
6,384
|
|
|
25,467
|
|
||
Credit services organization guarantee liability
|
10,412
|
|
|
17,795
|
|
||
Deferred rent
|
11,732
|
|
|
11,577
|
|
||
Long-term debt (includes long-term debt and issuance costs of consolidated VIEs of $115,071 and $3,921 as of March 31, 2018 and $124,590 and $4,188 as of December 31, 2017, respectively)
|
622,644
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|
|
706,225
|
|
||
Subordinated shareholder debt
|
2,322
|
|
|
2,381
|
|
||
Other long-term liabilities
|
6,199
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|
|
5,768
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|
||
Deferred tax liabilities
|
11,393
|
|
|
11,486
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|
||
Total Liabilities
|
742,832
|
|
|
852,595
|
|
||
Commitments and contingencies
|
|
|
|
|
|
||
Stockholder's Equity
|
|
|
|
|
|
||
Preferred stock - $0.001 par value, 25,000,000 shares authorized and no shares were issued at either period end
|
—
|
|
|
—
|
|
||
Class A common stock - $0.001 par value; 225,000,000 shares authorized; issued and outstanding of 45,561,419 and 44,561,419 as of March 31, 2018 and December 31, 2017, respectively)
|
9
|
|
|
8
|
|
||
Paid-in capital
|
61,056
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|
|
46,079
|
|
||
Retained earnings
|
27,279
|
|
|
3,988
|
|
||
Accumulated other comprehensive loss
|
(45,795
|
)
|
|
(42,939
|
)
|
||
Total Stockholder’s Equity
|
42,549
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|
|
7,136
|
|
||
Total Liabilities and Stockholder’s Equity
|
$
|
785,381
|
|
|
$
|
859,731
|
|
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Three Months Ended
March 31, |
||||||
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2018
|
|
2017
|
||||
Revenue
|
$
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261,758
|
|
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$
|
224,580
|
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Provision for losses
|
81,031
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|
|
61,736
|
|
||
Net revenue
|
180,727
|
|
|
162,844
|
|
||
|
|
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|
||||
Cost of providing services
|
|
|
|
||||
Salaries and benefits
|
26,918
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|
|
26,433
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|
||
Occupancy
|
13,427
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|
14,095
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|
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Office
|
6,981
|
|
|
4,868
|
|
||
Other costs of providing services
|
14,400
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|
14,855
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|
||
Advertising
|
9,756
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7,688
|
|
||
Total cost of providing services
|
71,482
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|
|
67,939
|
|
||
Gross margin
|
109,245
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|
94,905
|
|
||
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|
||||
Operating expense
|
|
|
|
||||
Corporate, district and other
|
40,454
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|
|
32,993
|
|
||
Interest expense
|
22,349
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|
|
23,366
|
|
||
Loss on extinguishment of debt
|
11,683
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|
12,458
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|
||
Total operating expense
|
74,486
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|
68,817
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|
||
Net income before income taxes
|
34,759
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|
26,088
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|
||
Provision for income taxes
|
11,467
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|
|
9,450
|
|
||
Net income
|
$
|
23,292
|
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|
$
|
16,638
|
|
|
|
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|
||||
Weighted average common shares outstanding:
|
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|
||||
Basic
|
45,506
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37,895
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|
||
Diluted
|
47,416
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|
|
38,959
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|
||
Net income per common share:
|
|
|
|
||||
Basic earnings per share
|
$
|
0.51
|
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|
$
|
0.44
|
|
Diluted earnings per share:
|
$
|
0.49
|
|
|
$
|
0.43
|
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|
Three Months Ended
March 31, |
||||||
|
2018
|
|
2017
|
||||
Net income
|
$
|
23,292
|
|
|
$
|
16,638
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
||
Cash flow hedges, net of $0 tax in all periods
|
54
|
|
|
(42
|
)
|
||
Foreign currency translation adjustment, net of $0 tax in all periods
|
(2,910
|
)
|
|
2,790
|
|
||
Other comprehensive income (loss)
|
(2,856
|
)
|
|
2,748
|
|
||
Comprehensive income
|
$
|
20,436
|
|
|
$
|
19,386
|
|
|
Three Months Ended March 31,
|
||||||
|
2018
|
|
2017
|
||||
Cash flows from operating activities
|
|
|
|
||||
Net income
|
$
|
23,292
|
|
|
$
|
16,638
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
4,660
|
|
|
4,654
|
|
||
Provision for loan losses
|
81,031
|
|
|
61,736
|
|
||
Amortization of debt issuance costs
|
(34
|
)
|
|
770
|
|
||
Amortization of bond discount/(premium)
|
1,163
|
|
|
14
|
|
||
Deferred income tax benefit
|
(1,094
|
)
|
|
(504
|
)
|
||
Loss on disposal of property and equipment
|
478
|
|
|
10
|
|
||
Loss on extinguishment of debt
|
11,683
|
|
|
12,458
|
|
||
Call premium payment from debt extinguishment
|
(9,300
|
)
|
|
—
|
|
||
Increase in cash surrender value of life insurance
|
(1,482
|
)
|
|
(502
|
)
|
||
Share-based compensation expense
|
1,842
|
|
|
126
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Loans receivable
|
(55,975
|
)
|
|
(34,818
|
)
|
||
Prepaid expenses and other assets
|
9,739
|
|
|
4,792
|
|
||
Accounts payable and accrued liabilities
|
(3,239
|
)
|
|
(9,345
|
)
|
||
Deferred revenue
|
(1,734
|
)
|
|
(1,715
|
)
|
||
Income taxes payable
|
19,629
|
|
|
(841
|
)
|
||
Income taxes receivable
|
(7,411
|
)
|
|
3,816
|
|
||
Deferred rent
|
180
|
|
|
194
|
|
||
Accrued Interest
|
(19,084
|
)
|
|
(292
|
)
|
||
Other liabilities
|
443
|
|
|
(266
|
)
|
||
Net cash provided by operating activities
|
54,787
|
|
|
56,925
|
|
||
Cash flows from investing activities
|
|
|
|
||||
Purchase of property, equipment and software
|
(1,609
|
)
|
|
(3,093
|
)
|
||
Cash paid for Cognical Holdings preferred shares
|
(958
|
)
|
|
—
|
|
||
Changes in restricted cash
|
(5,403
|
)
|
|
(6,993
|
)
|
||
Net cash (used in) investing activities
|
(7,970
|
)
|
|
(10,086
|
)
|
||
Cash flows from financing activities
|
|
|
|
||||
Net proceeds from issuance of common stock
|
13,135
|
|
|
—
|
|
||
Proceeds from Non-Recourse U.S. SPV facility and ABL facility
|
3,000
|
|
|
19,802
|
|
||
Payments on Non-Recourse U.S. SPV facility and ABL facility
|
(12,519
|
)
|
|
(11,797
|
)
|
||
Proceeds from issuance of 12.00% Senior Secured Notes
|
—
|
|
|
461,329
|
|
||
Payments on 10.75% Senior Secured Notes
|
—
|
|
|
(426,034
|
)
|
||
Payments on 12.00% Senior Secured Notes
|
(77,500
|
)
|
|
—
|
|
||
Payments on 12.00% Senior Cash Pay Notes
|
—
|
|
|
(125,000
|
)
|
||
Debt issuance costs paid
|
(71
|
)
|
|
(13,690
|
)
|
||
Proceeds from credit facilities
|
10,000
|
|
|
—
|
|
||
Payments on credit facilities
|
(10,000
|
)
|
|
—
|
|
||
Net cash (used in) financing activities
|
(73,955
|
)
|
|
(95,390
|
)
|
||
Effect of exchange rate changes on cash
|
(4,497
|
)
|
|
829
|
|
||
Net (decrease) in cash
|
(31,635
|
)
|
|
(47,722
|
)
|
||
Cash at beginning of period
|
162,374
|
|
|
193,525
|
|
||
Cash at end of period
|
$
|
130,739
|
|
|
$
|
145,803
|
|
(in thousands)
|
March 31, 2018
|
|
December 31, 2017
|
||||
Assets
|
|
|
|
||||
Restricted Cash
|
$
|
12,268
|
|
|
$
|
6,871
|
|
Loans receivable less allowance for loan losses
|
149,873
|
|
|
167,706
|
|
||
Total Assets
|
$
|
162,141
|
|
|
$
|
174,577
|
|
Liabilities
|
|
|
|
||||
Accounts payable and accrued liabilities
|
$
|
15
|
|
|
$
|
12
|
|
Accrued interest
|
1,263
|
|
|
1,266
|
|
||
Long-term debt
|
111,150
|
|
|
120,402
|
|
||
Total Liabilities
|
$
|
112,428
|
|
|
$
|
121,680
|
|
|
Three Months Ended March 31,
|
||||||
(in thousands)
|
2018
|
|
2017
|
||||
Unsecured Installment
|
$
|
132,946
|
|
|
$
|
109,431
|
|
Secured Installment
|
26,856
|
|
|
23,669
|
|
||
Open-End
|
27,223
|
|
|
17,907
|
|
||
Single-Pay
|
63,705
|
|
|
63,790
|
|
||
Ancillary
|
11,028
|
|
|
9,783
|
|
||
Total revenue
|
$
|
261,758
|
|
|
$
|
224,580
|
|
|
|
March 31, 2018
|
||||||||||||||
(in thousands)
|
|
Single-Pay
|
Unsecured Installment
|
Secured Installment
|
Open-End
|
Total
|
||||||||||
Current loans receivable
|
|
$
|
87,075
|
|
$
|
132,159
|
|
$
|
65,448
|
|
$
|
51,564
|
|
$
|
336,246
|
|
Delinquent loans receivable
|
|
—
|
|
39,273
|
|
14,319
|
|
—
|
|
53,592
|
|
|||||
Total loans receivable
|
|
87,075
|
|
171,432
|
|
79,767
|
|
51,564
|
|
389,838
|
|
|||||
Less: allowance for losses
|
|
(4,485
|
)
|
(37,916
|
)
|
(11,639
|
)
|
(6,846
|
)
|
(60,886
|
)
|
|||||
Loans receivable, net
|
|
$
|
82,590
|
|
$
|
133,516
|
|
$
|
68,128
|
|
$
|
44,718
|
|
$
|
328,952
|
|
|
|
March 31, 2018
|
||||||||
(in thousands)
|
|
Unsecured Installment
|
Secured Installment
|
Total
|
||||||
Delinquent loans receivable
|
|
|
|
|
||||||
0-30 days past due
|
|
$
|
13,133
|
|
$
|
6,274
|
|
$
|
19,407
|
|
31-60 days past due
|
|
12,500
|
|
4,366
|
|
16,866
|
|
|||
61-90 days past due
|
|
13,640
|
|
3,679
|
|
17,319
|
|
|||
Total delinquent loans receivable
|
|
$
|
39,273
|
|
$
|
14,319
|
|
$
|
53,592
|
|
|
|
December 31, 2017
|
||||||||||||||
(in thousands)
|
|
Single-Pay
|
Unsecured Installment
|
Secured Installment
|
Open-End
|
Total
|
||||||||||
Current loans receivable
|
|
$
|
99,400
|
|
$
|
151,343
|
|
$
|
73,165
|
|
$
|
47,949
|
|
$
|
371,857
|
|
Delinquent loans receivable
|
|
—
|
|
44,963
|
|
16,017
|
|
—
|
|
60,980
|
|
|||||
Total consumer loans receivable
|
|
99,400
|
|
196,306
|
|
89,182
|
|
47,949
|
|
432,837
|
|
|||||
Less: allowance for losses
|
|
(5,916
|
)
|
(43,754
|
)
|
(13,472
|
)
|
(6,426
|
)
|
(69,568
|
)
|
|||||
Consumer loans receivable, net
|
|
$
|
93,484
|
|
$
|
152,552
|
|
$
|
75,710
|
|
$
|
41,523
|
|
$
|
363,269
|
|
|
|
December 31, 2017
|
||||||||
(in thousands)
|
|
Unsecured Installment
|
Secured Installment
|
Total
|
||||||
Delinquent loans receivable
|
|
|
|
|
|
|||||
0-30 days past due
|
|
$
|
18,358
|
|
$
|
8,116
|
|
$
|
26,474
|
|
31-60 days past due
|
|
12,836
|
|
3,628
|
|
16,464
|
|
|||
61-90 days past due
|
|
13,769
|
|
4,273
|
|
18,042
|
|
|||
Total delinquent loans receivable
|
|
$
|
44,963
|
|
$
|
16,017
|
|
$
|
60,980
|
|
|
|
March 31, 2018
|
||||||||
(in thousands)
|
|
Unsecured Installment
|
Secured Installment
|
Total
|
||||||
Current loans receivable guaranteed by the Company
|
|
$
|
45,922
|
|
$
|
2,329
|
|
$
|
48,251
|
|
Delinquent loans receivable guaranteed by the Company
|
|
8,410
|
|
437
|
|
8,847
|
|
|||
Total loans receivable guaranteed by the Company
|
|
54,332
|
|
2,766
|
|
57,098
|
|
|||
Less: CSO guarantee liability
|
|
(9,886
|
)
|
(526
|
)
|
(10,412
|
)
|
|||
Loans receivable guaranteed by the Company, net
|
|
$
|
44,446
|
|
$
|
2,240
|
|
$
|
46,686
|
|
|
|
March 31, 2018
|
||||||||
(in thousands)
|
|
Unsecured Installment
|
Secured Installment
|
Total
|
||||||
Delinquent loans receivable
|
|
|
|
|
|
|||||
0-30 days past due
|
|
$
|
6,358
|
|
$
|
379
|
|
$
|
6,737
|
|
31-60 days past due
|
|
1,078
|
|
30
|
|
1,108
|
|
|||
61-90 days past due
|
|
974
|
|
28
|
|
1,002
|
|
|||
Total delinquent loans receivable
|
|
$
|
8,410
|
|
$
|
437
|
|
$
|
8,847
|
|
|
|
December 31, 2017
|
||||||||
(in thousands)
|
|
Unsecured Installment
|
Secured Installment
|
Total
|
||||||
Current loans receivable guaranteed by the Company
|
|
$
|
62,676
|
|
$
|
3,098
|
|
$
|
65,774
|
|
Delinquent loans receivable guaranteed by the Company
|
|
12,480
|
|
537
|
|
13,017
|
|
|||
Total loans receivable guaranteed by the Company
|
|
75,156
|
|
3,635
|
|
78,791
|
|
|||
Less: CSO guarantee liability
|
|
(17,073
|
)
|
(722
|
)
|
(17,795
|
)
|
|||
Loans receivable guaranteed by the Company, net
|
|
$
|
58,083
|
|
$
|
2,913
|
|
$
|
60,996
|
|
|
|
December 31, 2017
|
||||||||
(in thousands)
|
|
Unsecured Installment
|
Secured Installment
|
Total
|
||||||
Delinquent loans receivable
|
|
|
|
|
||||||
0-30 days past due
|
|
$
|
10,477
|
|
$
|
459
|
|
$
|
10,936
|
|
31-60 days past due
|
|
1,364
|
|
41
|
|
1,405
|
|
|||
61-90 days past due
|
|
639
|
|
37
|
|
676
|
|
|||
Total delinquent loans receivable
|
|
$
|
12,480
|
|
$
|
537
|
|
$
|
13,017
|
|
|
Three Months Ended March 31, 2018
|
|||||||||||||||||
(in thousands)
|
Single-Pay
|
Unsecured Installment
|
Secured Installment
|
Open-End
|
Other
|
Total
|
||||||||||||
Balance, beginning of period
|
$
|
5,916
|
|
$
|
43,754
|
|
$
|
13,472
|
|
$
|
6,426
|
|
$
|
—
|
|
$
|
69,568
|
|
Charge-offs
|
(47,707
|
)
|
(39,377
|
)
|
(11,485
|
)
|
(20,349
|
)
|
(675
|
)
|
(119,593
|
)
|
||||||
Recoveries
|
35,009
|
|
5,967
|
|
2,866
|
|
9,377
|
|
47
|
|
53,266
|
|
||||||
Net charge-offs
|
(12,698
|
)
|
(33,410
|
)
|
(8,619
|
)
|
(10,972
|
)
|
(628
|
)
|
(66,327
|
)
|
||||||
Provision for losses
|
11,302
|
|
27,477
|
|
6,786
|
|
11,428
|
|
628
|
|
57,621
|
|
||||||
Effect of foreign currency translation
|
(35
|
)
|
95
|
|
—
|
|
(36
|
)
|
—
|
|
24
|
|
||||||
Balance, end of period
|
$
|
4,485
|
|
$
|
37,916
|
|
$
|
11,639
|
|
$
|
6,846
|
|
$
|
—
|
|
$
|
60,886
|
|
Allowance for loan losses as a percentage of gross loan receivables
|
5.2
|
%
|
22.1
|
%
|
14.6
|
%
|
13.3
|
%
|
N/A
|
|
15.6
|
%
|
|
Three Months Ended
March 31, 2018 |
||||||||
(in thousands)
|
Unsecured Installment
|
Secured Installment
|
Total
|
||||||
Balance, beginning of period
|
$
|
17,073
|
|
$
|
722
|
|
$
|
17,795
|
|
Charge-offs
|
(41,719
|
)
|
(1,219
|
)
|
(42,938
|
)
|
|||
Recoveries
|
10,976
|
|
1,169
|
|
12,145
|
|
|||
Net charge-offs
|
(30,743
|
)
|
(50
|
)
|
(30,793
|
)
|
|||
Provision for losses
|
23,556
|
|
(146
|
)
|
23,410
|
|
|||
Balance, end of period
|
$
|
9,886
|
|
$
|
526
|
|
$
|
10,412
|
|
|
Three Months Ended March 31, 2018
|
|||||||||||||||||
(in thousands)
|
Single-Pay
|
Unsecured Installment
|
Secured Installment
|
Open-End
|
Other
|
Total
|
||||||||||||
Balance, beginning of period
|
$
|
5,916
|
|
$
|
60,827
|
|
$
|
14,194
|
|
$
|
6,426
|
|
$
|
—
|
|
$
|
87,363
|
|
Charge-offs
|
(47,707
|
)
|
(81,096
|
)
|
(12,704
|
)
|
(20,349
|
)
|
(675
|
)
|
(162,531
|
)
|
||||||
Recoveries
|
35,009
|
|
16,943
|
|
4,035
|
|
9,377
|
|
47
|
|
65,411
|
|
||||||
Net charge-offs
|
(12,698
|
)
|
(64,153
|
)
|
(8,669
|
)
|
(10,972
|
)
|
(628
|
)
|
(97,120
|
)
|
||||||
Provision for losses
|
11,302
|
|
51,033
|
|
6,640
|
|
11,428
|
|
628
|
|
81,031
|
|
||||||
Effect of foreign currency translation
|
(35
|
)
|
95
|
|
—
|
|
(36
|
)
|
—
|
|
24
|
|
||||||
Balance, end of period
|
$
|
4,485
|
|
$
|
47,802
|
|
$
|
12,165
|
|
$
|
6,846
|
|
$
|
—
|
|
$
|
71,298
|
|
|
Three Months Ended March 31, 2017
|
|||||||||||||||||
(in thousands)
|
Single-Pay
|
Unsecured Installment
|
Secured Installment
|
Open-End
|
Other
|
Total
|
||||||||||||
Balance, beginning of period
|
$
|
5,425
|
|
$
|
17,853
|
|
$
|
10,737
|
|
$
|
5,179
|
|
$
|
—
|
|
$
|
39,194
|
|
Charge-offs
|
(44,885
|
)
|
—
|
|
—
|
|
(9,229
|
)
|
(1,139
|
)
|
(55,253
|
)
|
||||||
Recoveries
|
33,227
|
|
4,840
|
|
3,028
|
|
5,353
|
|
752
|
|
47,200
|
|
||||||
Net charge-offs
|
(11,658
|
)
|
4,840
|
|
3,028
|
|
(3,876
|
)
|
(387
|
)
|
(8,053
|
)
|
||||||
Provision for losses
|
10,894
|
|
19,309
|
|
6,504
|
|
3,265
|
|
387
|
|
40,359
|
|
||||||
Effect of foreign currency translation
|
58
|
|
38
|
|
1
|
|
4
|
|
—
|
|
101
|
|
||||||
Balance, end of period
|
$
|
4,719
|
|
$
|
42,040
|
|
$
|
20,270
|
|
$
|
4,572
|
|
$
|
—
|
|
$
|
71,601
|
|
Allowance for loan losses as a percentage of gross loan receivables
|
5.9
|
%
|
32.0
|
%
|
30.0
|
%
|
17.8
|
%
|
N/A
|
|
23.5
|
%
|
|
Three Months Ended March 31, 2017
|
|||||||||||
(in thousands)
|
Single-Pay
|
Unsecured Installment
|
Secured Installment
|
Total
|
||||||||
Balance, beginning of period
|
$
|
274
|
|
$
|
15,630
|
|
$
|
1,148
|
|
$
|
17,052
|
|
Charge-offs
|
(1,821
|
)
|
(27,647
|
)
|
(3,163
|
)
|
(32,631
|
)
|
||||
Recoveries
|
659
|
|
10,957
|
|
2,371
|
|
13,987
|
|
||||
Net charge-offs
|
(1,162
|
)
|
(16,690
|
)
|
(792
|
)
|
(18,644
|
)
|
||||
Provision for losses
|
904
|
|
19,542
|
|
931
|
|
21,377
|
|
||||
Balance, end of period
|
$
|
16
|
|
$
|
18,482
|
|
$
|
1,287
|
|
$
|
19,785
|
|
|
Three Months Ended March 31, 2017
|
|||||||||||||||||
(in thousands)
|
Single-Pay
|
Unsecured Installment
|
Secured Installment
|
Open-End
|
Other
|
Total
|
||||||||||||
Balance, beginning of period
|
$
|
5,699
|
|
$
|
33,483
|
|
$
|
11,885
|
|
$
|
5,179
|
|
$
|
—
|
|
$
|
56,246
|
|
Charge-offs
|
(46,706
|
)
|
(27,647
|
)
|
(3,163
|
)
|
(9,229
|
)
|
(1,139
|
)
|
(87,884
|
)
|
||||||
Recoveries
|
33,886
|
|
15,797
|
|
5,399
|
|
5,353
|
|
752
|
|
61,187
|
|
||||||
Net charge-offs
|
(12,820
|
)
|
(11,850
|
)
|
2,236
|
|
(3,876
|
)
|
(387
|
)
|
(26,697
|
)
|
||||||
Provision for losses
|
11,798
|
|
38,851
|
|
7,435
|
|
3,265
|
|
387
|
|
61,736
|
|
||||||
Effect of foreign currency translation
|
58
|
|
38
|
|
1
|
|
4
|
|
—
|
|
101
|
|
||||||
Balance, end of period
|
$
|
4,735
|
|
$
|
60,522
|
|
$
|
21,557
|
|
$
|
4,572
|
|
$
|
—
|
|
$
|
91,386
|
|
(in thousands)
|
|
March 31, 2018
|
|
December 31, 2017
|
||||
2017 Senior secured notes (due 2022)
|
|
$
|
511,493
|
|
|
$
|
585,823
|
|
Non-Recourse U.S. SPV Facility
|
|
111,151
|
|
|
120,402
|
|
||
Senior Revolver
|
|
—
|
|
|
—
|
|
||
Long-term debt
|
|
$
|
622,644
|
|
|
$
|
706,225
|
|
Non-vested Restricted Stock
|
Shares
|
|
Weighted
Average
Grant Date
Fair Value
|
|||
December 31, 2017
|
1,516,241
|
|
|
$
|
14.00
|
|
Granted
|
32,857
|
|
|
$
|
17.14
|
|
Vested
|
—
|
|
|
—
|
|
|
Forfeited
|
—
|
|
|
—
|
|
|
March 31, 2018
|
1,549,098
|
|
|
$
|
14.07
|
|
|
|
Estimated Fair Value
|
|||||||||||||
(dollars in thousands)
|
Carrying Value March 31,
2018 |
Level 1
|
Level 2
|
Level 3
|
March 31, 2018
|
||||||||||
Financial assets:
|
|
|
|
|
|
||||||||||
Cash
|
$
|
130,739
|
|
$
|
130,739
|
|
$
|
—
|
|
$
|
—
|
|
$
|
130,739
|
|
Restricted cash
|
17,656
|
|
17,656
|
|
—
|
|
—
|
|
17,656
|
|
|||||
Loans receivable, net
|
328,952
|
|
—
|
|
—
|
|
328,952
|
|
328,952
|
|
|||||
Investment
|
6,600
|
|
—
|
|
—
|
|
6,600
|
|
6,600
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
||||||||||
Credit services organization guarantee liability
|
$
|
10,412
|
|
$
|
—
|
|
$
|
—
|
|
$
|
10,412
|
|
$
|
10,412
|
|
Senior secured notes
|
511,493
|
|
—
|
|
—
|
|
583,406
|
|
583,406
|
|
|||||
Non-Recourse U.S. SPV facility
|
111,151
|
|
—
|
|
—
|
|
115,071
|
|
115,071
|
|
|||||
Senior Revolver
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
Estimated Fair Value
|
|||||||||||||
(dollars in thousands)
|
Carrying Value December 31,
2017 |
Level 1
|
Level 2
|
Level 3
|
December 31, 2017
|
||||||||||
Financial assets:
|
|
|
|
|
|
||||||||||
Cash
|
$
|
162,374
|
|
$
|
162,374
|
|
$
|
—
|
|
$
|
—
|
|
$
|
162,374
|
|
Restricted cash
|
12,117
|
|
12,117
|
|
—
|
|
—
|
|
12,117
|
|
|||||
Loans receivable, net
|
363,269
|
|
—
|
|
—
|
|
363,269
|
|
363,269
|
|
|||||
Investment
|
5,600
|
|
—
|
|
—
|
|
5,600
|
|
5,600
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
||||||||||
Credit services organization guarantee liability
|
17,795
|
|
—
|
|
—
|
|
17,795
|
|
17,795
|
|
|||||
2017 Senior Secured notes
|
585,823
|
|
—
|
|
—
|
|
663,472
|
|
663,472
|
|
|||||
Non-Recourse U.S. SPV facility
|
120,402
|
|
—
|
|
—
|
|
124,590
|
|
124,590
|
|
|
Three Months Ended
March 31, |
||||||
|
2018
|
|
2017
|
||||
Basic:
(1)
|
|
|
|
||||
Net income
|
$
|
23,292
|
|
|
$
|
16,638
|
|
Weight average common shares
|
45,506
|
|
|
37,895
|
|
||
Basic earnings per share
|
$
|
0.51
|
|
|
$
|
0.44
|
|
(1) The share and per share information have been adjusted to reflect the 36-to-1 stock split of our common stock, which occurred during the fourth quarter of 2017.
|
|
Three Months Ended
March 31, |
||||||
|
2018
|
|
2017
|
||||
Diluted:
(1)
|
|
|
|
||||
Net income
|
$
|
23,292
|
|
|
$
|
16,638
|
|
Weighted average common shares - basic
|
45,506
|
|
|
37,895
|
|
||
Dilutive effect of stock options and restricted stock units
|
1,910
|
|
|
1,064
|
|
||
Weighted average common shares - diluted
|
47,416
|
|
|
38,959
|
|
||
Diluted earnings per share
|
$
|
0.49
|
|
|
$
|
0.43
|
|
(1) The share and per share information have been adjusted to reflect the 36-to-1 stock split of our common stock, which occurred during the fourth quarter of 2017.
|
|
Three Months Ended
March 31, |
||||||
(dollars in thousands)
|
2018
|
|
2017
|
||||
Cash paid for:
|
|
|
|
||||
Interest
|
$
|
40,225
|
|
|
$
|
22,824
|
|
Income taxes
|
4,431
|
|
|
7,700
|
|
||
Non-cash investing activities:
|
|
|
|
||||
Property and equipment accrued in accounts payable
|
$
|
317
|
|
|
$
|
126
|
|
|
Three Months Ended March 31,
|
||||||
(dollars in thousands)
|
2018
|
|
2017
|
||||
Revenues by segment:
|
|
|
|
||||
U.S.
|
$
|
204,593
|
|
|
$
|
174,322
|
|
Canada
|
46,250
|
|
|
41,566
|
|
||
U.K.
|
10,915
|
|
|
8,692
|
|
||
Consolidated revenue
|
$
|
261,758
|
|
|
$
|
224,580
|
|
Gross margin by segment:
|
|
|
|
||||
U.S.
|
$
|
91,344
|
|
|
$
|
77,133
|
|
Canada
|
14,502
|
|
|
14,300
|
|
||
U.K.
|
3,399
|
|
|
3,472
|
|
||
Consolidated gross margin
|
$
|
109,245
|
|
|
$
|
94,905
|
|
Expenditures for long-lived assets by segment:
|
|
|
|
||||
U.S.
|
$
|
788
|
|
|
$
|
1,672
|
|
Canada
|
754
|
|
|
1,291
|
|
||
U.K.
|
67
|
|
|
130
|
|
||
Consolidated expenditures for long-lived assets
|
$
|
1,609
|
|
|
$
|
3,093
|
|
(dollars in thousands)
|
March 31,
2018 |
|
December 31,
2017 |
||||
U.S.
|
$
|
266,731
|
|
|
$
|
308,696
|
|
Canada
|
102,597
|
|
|
104,551
|
|
||
U.K.
|
20,510
|
|
|
19,590
|
|
||
Total gross loans receivable
|
$
|
389,838
|
|
|
$
|
432,837
|
|
(dollars in thousands)
|
March 31, 2018
|
|
December 31, 2017
|
||||
U.S.
|
$
|
50,614
|
|
|
$
|
52,627
|
|
Canada
|
31,390
|
|
|
32,924
|
|
||
U.K.
|
1,518
|
|
|
1,535
|
|
||
Total net long-lived assets
|
$
|
83,522
|
|
|
$
|
87,086
|
|
(i)
|
CFTC as the issuer of the Senior Secured Notes;
|
(ii)
|
CURO Intermediate as the issuer of the
10.75%
senior secured notes that were redeemed in February 2017;
|
(iii)
|
Our subsidiary guarantors, which are comprised of our domestic subsidiaries, excluding CFTC and CURO Intermediate (the “Subsidiary Guarantors”), on a consolidated basis, which are
100%
owned by CURO, and which are guarantors of the Senior Secured Notes issued in February 2017 and the
10.75%
senior secured notes redeemed in February 2017;
|
(iv)
|
Our other subsidiaries on a consolidated basis, which are not guarantors of the Senior Secured Notes (the “Subsidiary Non-Guarantors”)
|
(v)
|
Consolidating and eliminating entries representing adjustments to:
|
a.
|
eliminate intercompany transactions between or among us, the Subsidiary Guarantors and the Subsidiary Non-Guarantors; and
|
b.
|
eliminate the investments in our subsidiaries;
|
(vi)
|
Us and our subsidiaries on a consolidated basis.
|
|
March 31, 2018
|
|||||||||||||||||||||||||||||
(dollars in thousands)
|
CFTC
|
CURO Intermediate
|
Subsidiary
Guarantors
|
Subsidiary
Non-Guarantors
|
SPV Subs
|
Eliminations
|
Consolidated
|
CURO
|
Eliminations
|
CURO
Consolidated |
||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Cash
|
$
|
—
|
|
$
|
—
|
|
$
|
82,358
|
|
$
|
48,381
|
|
$
|
—
|
|
$
|
—
|
|
$
|
130,739
|
|
$
|
—
|
|
$
|
—
|
|
$
|
130,739
|
|
Restricted cash
|
—
|
|
—
|
|
1,678
|
|
3,710
|
|
12,268
|
|
—
|
|
17,656
|
|
—
|
|
—
|
|
17,656
|
|
||||||||||
Loans receivable, net
|
—
|
|
—
|
|
68,304
|
|
110,775
|
|
149,873
|
|
—
|
|
328,952
|
|
—
|
|
—
|
|
328,952
|
|
||||||||||
Deferred income taxes
|
—
|
|
1,002
|
|
(3,313
|
)
|
4,128
|
|
—
|
|
—
|
|
1,817
|
|
—
|
|
—
|
|
1,817
|
|
||||||||||
Prepaid expenses and other
|
—
|
|
—
|
|
29,304
|
|
3,449
|
|
—
|
|
—
|
|
32,753
|
|
—
|
|
—
|
|
32,753
|
|
||||||||||
Property and equipment, net
|
—
|
|
—
|
|
50,613
|
|
32,909
|
|
—
|
|
—
|
|
83,522
|
|
—
|
|
—
|
|
83,522
|
|
||||||||||
Goodwill
|
—
|
|
—
|
|
91,130
|
|
54,634
|
|
—
|
|
—
|
|
145,764
|
|
—
|
|
—
|
|
145,764
|
|
||||||||||
Other intangibles, net
|
16
|
|
—
|
|
5,024
|
|
26,921
|
|
—
|
|
—
|
|
31,961
|
|
—
|
|
—
|
|
31,961
|
|
||||||||||
Intercompany receivable
|
—
|
|
37,877
|
|
19,236
|
|
(17,249
|
)
|
—
|
|
(39,864
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Investment in subsidiaries
|
31,067
|
|
981,468
|
|
—
|
|
—
|
|
—
|
|
(1,012,535
|
)
|
—
|
|
(62,855
|
)
|
62,855
|
|
—
|
|
||||||||||
Other
|
6,668
|
|
—
|
|
4,499
|
|
1,050
|
|
—
|
|
—
|
|
12,217
|
|
—
|
|
—
|
|
12,217
|
|
||||||||||
Total assets
|
$
|
37,751
|
|
$
|
1,020,347
|
|
$
|
348,833
|
|
$
|
268,708
|
|
$
|
162,141
|
|
$
|
(1,052,399
|
)
|
$
|
785,381
|
|
$
|
(62,855
|
)
|
$
|
62,855
|
|
$
|
785,381
|
|
Liabilities and Stockholder's equity:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Accounts payable and accrued liabilities
|
$
|
2,346
|
|
$
|
16
|
|
$
|
33,274
|
|
$
|
17,176
|
|
$
|
15
|
|
$
|
—
|
|
$
|
52,827
|
|
$
|
33
|
|
$
|
—
|
|
$
|
52,860
|
|
Deferred revenue
|
—
|
|
—
|
|
5,031
|
|
5,145
|
|
(24
|
)
|
—
|
|
10,152
|
|
—
|
|
—
|
|
10,152
|
|
||||||||||
Income taxes payable
|
(56,738
|
)
|
87,519
|
|
(18,566
|
)
|
269
|
|
—
|
|
—
|
|
12,484
|
|
(3,750
|
)
|
—
|
|
8,734
|
|
||||||||||
Accrued interest
|
5,121
|
|
—
|
|
—
|
|
—
|
|
1,263
|
|
—
|
|
6,384
|
|
—
|
|
—
|
|
6,384
|
|
||||||||||
Payable to CURO Holdings Corp.
|
38,848
|
|
—
|
|
62,839
|
|
—
|
|
—
|
|
—
|
|
101,687
|
|
(101,687
|
)
|
—
|
|
—
|
|
||||||||||
CSO guarantee liability
|
—
|
|
—
|
|
10,412
|
|
—
|
|
—
|
|
—
|
|
10,412
|
|
—
|
|
—
|
|
10,412
|
|
||||||||||
Deferred rent
|
—
|
|
—
|
|
9,837
|
|
1,895
|
|
—
|
|
—
|
|
11,732
|
|
—
|
|
—
|
|
11,732
|
|
||||||||||
Long-term debt (excluding current maturities)
|
511,494
|
|
—
|
|
—
|
|
—
|
|
111,150
|
|
—
|
|
622,644
|
|
—
|
|
—
|
|
622,644
|
|
||||||||||
Subordinated shareholder debt
|
—
|
|
—
|
|
—
|
|
2,322
|
|
—
|
|
—
|
|
2,322
|
|
—
|
|
—
|
|
2,322
|
|
||||||||||
Intercompany payable
|
(398,033
|
)
|
894,896
|
|
(370,086
|
)
|
39,864
|
|
(126,777
|
)
|
(39,864
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Other long-term liabilities
|
—
|
|
—
|
|
4,539
|
|
1,660
|
|
—
|
|
—
|
|
6,199
|
|
—
|
|
—
|
|
6,199
|
|
||||||||||
Deferred tax liabilities
|
(2,432
|
)
|
6,849
|
|
(276
|
)
|
7,252
|
|
—
|
|
—
|
|
11,393
|
|
—
|
|
—
|
|
11,393
|
|
||||||||||
Total liabilities
|
100,606
|
|
989,280
|
|
(262,996
|
)
|
75,583
|
|
(14,373
|
)
|
(39,864
|
)
|
848,236
|
|
(105,404
|
)
|
—
|
|
742,832
|
|
||||||||||
Stockholder’s equity
|
(62,855
|
)
|
31,067
|
|
611,829
|
|
193,125
|
|
176,514
|
|
(1,012,535
|
)
|
(62,855
|
)
|
42,549
|
|
62,855
|
|
42,549
|
|
||||||||||
Total liabilities and stockholder’s equity
|
$
|
37,751
|
|
$
|
1,020,347
|
|
$
|
348,833
|
|
$
|
268,708
|
|
$
|
162,141
|
|
$
|
(1,052,399
|
)
|
$
|
785,381
|
|
$
|
(62,855
|
)
|
$
|
62,855
|
|
$
|
785,381
|
|
|
December 31, 2017
|
|||||||||||||||||||||||||||||
(dollars in thousands)
|
CFTC
|
CURO Intermediate
|
Subsidiary
Guarantors |
Subsidiary
Non-Guarantors |
SPV Subs
|
Eliminations
|
Consolidated
|
CURO
|
Eliminations
|
CURO
Consolidated |
||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Cash
|
$
|
—
|
|
$
|
—
|
|
$
|
117,379
|
|
$
|
44,915
|
|
$
|
—
|
|
$
|
—
|
|
$
|
162,294
|
|
$
|
80
|
|
$
|
—
|
|
$
|
162,374
|
|
Restricted cash
|
—
|
|
—
|
|
1,677
|
|
3,569
|
|
6,871
|
|
—
|
|
12,117
|
|
—
|
|
—
|
|
12,117
|
|
||||||||||
Loans receivable, net
|
—
|
|
—
|
|
84,912
|
|
110,651
|
|
167,706
|
|
—
|
|
363,269
|
|
—
|
|
—
|
|
363,269
|
|
||||||||||
Deferred income taxes
|
—
|
|
2,154
|
|
(4,646
|
)
|
3,502
|
|
—
|
|
—
|
|
1,010
|
|
(238
|
)
|
—
|
|
772
|
|
||||||||||
Income taxes receivable
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3,455
|
|
—
|
|
3,455
|
|
||||||||||
Prepaid expenses and other
|
—
|
|
—
|
|
38,277
|
|
3,353
|
|
—
|
|
—
|
|
41,630
|
|
882
|
|
—
|
|
42,512
|
|
||||||||||
Property and equipment, net
|
—
|
|
—
|
|
52,627
|
|
34,459
|
|
—
|
|
—
|
|
87,086
|
|
—
|
|
—
|
|
87,086
|
|
||||||||||
Goodwill
|
—
|
|
—
|
|
91,131
|
|
54,476
|
|
—
|
|
—
|
|
145,607
|
|
—
|
|
—
|
|
145,607
|
|
||||||||||
Other intangibles, net
|
16
|
|
—
|
|
5,418
|
|
27,335
|
|
—
|
|
—
|
|
32,769
|
|
—
|
|
—
|
|
32,769
|
|
||||||||||
Intercompany receivable
|
—
|
|
37,877
|
|
33,062
|
|
(30,588
|
)
|
—
|
|
(40,351
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Investment in subsidiaries
|
(14,504
|
)
|
899,371
|
|
—
|
|
—
|
|
—
|
|
(884,867
|
)
|
—
|
|
(84,889
|
)
|
84,889
|
|
—
|
|
||||||||||
Other
|
5,713
|
|
—
|
|
3,017
|
|
1,040
|
|
—
|
|
—
|
|
9,770
|
|
—
|
|
—
|
|
9,770
|
|
||||||||||
Total assets
|
$
|
(8,775
|
)
|
$
|
939,402
|
|
$
|
422,854
|
|
$
|
252,712
|
|
$
|
174,577
|
|
$
|
(925,218
|
)
|
$
|
855,552
|
|
$
|
(80,710
|
)
|
$
|
84,889
|
|
$
|
859,731
|
|
Liabilities and Stockholder's equity:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Accounts payable and accrued liabilities
|
$
|
2,606
|
|
$
|
13
|
|
$
|
35,753
|
|
$
|
15,954
|
|
$
|
12
|
|
$
|
—
|
|
$
|
54,338
|
|
$
|
1,454
|
|
$
|
—
|
|
$
|
55,792
|
|
Deferred revenue
|
—
|
|
—
|
|
6,529
|
|
5,455
|
|
—
|
|
—
|
|
11,984
|
|
—
|
|
—
|
|
11,984
|
|
||||||||||
Income taxes payable
|
(49,738
|
)
|
70,231
|
|
(18,450
|
)
|
2,077
|
|
—
|
|
—
|
|
4,120
|
|
—
|
|
—
|
|
4,120
|
|
||||||||||
Accrued interest
|
24,201
|
|
—
|
|
—
|
|
—
|
|
1,266
|
|
—
|
|
25,467
|
|
—
|
|
—
|
|
25,467
|
|
||||||||||
Payable to CURO Holdings Corp.
|
184,348
|
|
—
|
|
(95,048
|
)
|
—
|
|
—
|
|
—
|
|
89,300
|
|
(89,300
|
)
|
—
|
|
—
|
|
||||||||||
CSO guarantee liability
|
—
|
|
—
|
|
17,795
|
|
—
|
|
—
|
|
—
|
|
17,795
|
|
—
|
|
—
|
|
17,795
|
|
||||||||||
Deferred rent
|
—
|
|
—
|
|
9,896
|
|
1,681
|
|
—
|
|
—
|
|
11,577
|
|
—
|
|
—
|
|
11,577
|
|
||||||||||
Long-term debt
|
585,823
|
|
—
|
|
—
|
|
—
|
|
120,402
|
|
—
|
|
706,225
|
|
—
|
|
—
|
|
706,225
|
|
||||||||||
Subordinated shareholder debt
|
—
|
|
—
|
|
—
|
|
2,381
|
|
—
|
|
—
|
|
2,381
|
|
—
|
|
—
|
|
2,381
|
|
||||||||||
Intercompany payable
|
(668,536
|
)
|
876,869
|
|
(124,332
|
)
|
40,351
|
|
(84,001
|
)
|
(40,351
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Other long-term liabilities
|
—
|
|
—
|
|
3,969
|
|
1,799
|
|
—
|
|
—
|
|
5,768
|
|
—
|
|
—
|
|
5,768
|
|
||||||||||
Deferred tax liabilities
|
(2,590
|
)
|
6,793
|
|
(143
|
)
|
7,426
|
|
—
|
|
—
|
|
11,486
|
|
—
|
|
—
|
|
11,486
|
|
||||||||||
Total liabilities
|
76,114
|
|
953,906
|
|
(164,031
|
)
|
77,124
|
|
37,679
|
|
(40,351
|
)
|
940,441
|
|
(87,846
|
)
|
—
|
|
852,595
|
|
||||||||||
Stockholder’s equity
|
(84,889
|
)
|
(14,504
|
)
|
586,885
|
|
175,588
|
|
136,898
|
|
(884,867
|
)
|
(84,889
|
)
|
7,136
|
|
84,889
|
|
7,136
|
|
||||||||||
Total liabilities and stockholder’s equity
|
$
|
(8,775
|
)
|
$
|
939,402
|
|
$
|
422,854
|
|
$
|
252,712
|
|
$
|
174,577
|
|
$
|
(925,218
|
)
|
$
|
855,552
|
|
$
|
(80,710
|
)
|
$
|
84,889
|
|
$
|
859,731
|
|
|
Three Months Ended March 31, 2018
|
|||||||||||||||||||||||||||||
(dollars in thousands)
|
CFTC
|
CURO Intermediate
|
Subsidiary
Guarantors |
Subsidiary
Non-Guarantors |
SPV Subs
|
Eliminations
|
Consolidated
|
CURO
|
Eliminations
|
CURO
Consolidated |
||||||||||||||||||||
Revenue
|
$
|
—
|
|
$
|
—
|
|
$
|
128,408
|
|
$
|
57,165
|
|
$
|
76,185
|
|
$
|
—
|
|
$
|
261,758
|
|
$
|
—
|
|
$
|
—
|
|
$
|
261,758
|
|
Provision for losses
|
—
|
|
—
|
|
35,769
|
|
16,698
|
|
28,564
|
|
—
|
|
81,031
|
|
—
|
|
—
|
|
81,031
|
|
||||||||||
Net revenue
|
—
|
|
—
|
|
92,639
|
|
40,467
|
|
47,621
|
|
—
|
|
180,727
|
|
—
|
|
—
|
|
180,727
|
|
||||||||||
Cost of providing services:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Salaries and benefits
|
—
|
|
—
|
|
18,018
|
|
8,900
|
|
—
|
|
—
|
|
26,918
|
|
—
|
|
—
|
|
26,918
|
|
||||||||||
Occupancy
|
—
|
|
—
|
|
7,646
|
|
5,781
|
|
—
|
|
—
|
|
13,427
|
|
—
|
|
—
|
|
13,427
|
|
||||||||||
Office
|
—
|
|
—
|
|
5,582
|
|
1,399
|
|
—
|
|
—
|
|
6,981
|
|
—
|
|
—
|
|
6,981
|
|
||||||||||
Other costs of providing services
|
—
|
|
—
|
|
12,030
|
|
1,889
|
|
481
|
|
—
|
|
14,400
|
|
—
|
|
—
|
|
14,400
|
|
||||||||||
Advertising
|
—
|
|
—
|
|
5,159
|
|
4,597
|
|
—
|
|
—
|
|
9,756
|
|
—
|
|
—
|
|
9,756
|
|
||||||||||
Total cost of providing services
|
—
|
|
—
|
|
48,435
|
|
22,566
|
|
481
|
|
—
|
|
71,482
|
|
—
|
|
—
|
|
71,482
|
|
||||||||||
Gross margin
|
—
|
|
—
|
|
44,204
|
|
17,901
|
|
47,140
|
|
—
|
|
109,245
|
|
—
|
|
—
|
|
109,245
|
|
||||||||||
Operating (income) expense:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Corporate, district and other
|
448
|
|
7
|
|
27,992
|
|
9,922
|
|
30
|
|
—
|
|
38,399
|
|
2,055
|
|
—
|
|
40,454
|
|
||||||||||
Intercompany management fee
|
—
|
|
—
|
|
(6,902
|
)
|
3,494
|
|
3,408
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Interest expense
|
18,322
|
|
—
|
|
(112
|
)
|
52
|
|
4,087
|
|
—
|
|
22,349
|
|
—
|
|
—
|
|
22,349
|
|
||||||||||
Loss on extinguishment of debt
|
11,683
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
11,683
|
|
—
|
|
—
|
|
11,683
|
|
||||||||||
Intercompany interest (income) expense
|
—
|
|
(880
|
)
|
(79
|
)
|
959
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Total operating expense
|
30,453
|
|
(873
|
)
|
20,899
|
|
14,427
|
|
7,525
|
|
—
|
|
72,431
|
|
2,055
|
|
—
|
|
74,486
|
|
||||||||||
Net income (loss) before income taxes
|
(30,453
|
)
|
873
|
|
23,305
|
|
3,474
|
|
39,615
|
|
—
|
|
36,814
|
|
(2,055
|
)
|
—
|
|
34,759
|
|
||||||||||
Provision for income tax expense (benefit)
|
(6,841
|
)
|
18,497
|
|
(1,585
|
)
|
1,929
|
|
—
|
|
—
|
|
12,000
|
|
(533
|
)
|
—
|
|
11,467
|
|
||||||||||
Net income (loss)
|
(23,612
|
)
|
(17,624
|
)
|
24,890
|
|
1,545
|
|
39,615
|
|
—
|
|
24,814
|
|
(1,522
|
)
|
—
|
|
23,292
|
|
||||||||||
Equity in net income (loss) of subsidiaries:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
CFTC
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
24,814
|
|
(24,814
|
)
|
—
|
|
||||||||||
CURO Intermediate
|
(17,624
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
17,624
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Guarantor Subsidiaries
|
24,890
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(24,890
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Non-Guarantor Subsidiaries
|
1,545
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,545
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
SPV Subs
|
39,615
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(39,615
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Net income (loss) attributable to CURO
|
$
|
24,814
|
|
$
|
(17,624
|
)
|
$
|
24,890
|
|
$
|
1,545
|
|
$
|
39,615
|
|
$
|
(48,426
|
)
|
$
|
24,814
|
|
$
|
23,292
|
|
$
|
(24,814
|
)
|
$
|
23,292
|
|
|
Three Months Ended March 31, 2017
|
|||||||||||||||||||||||||||||
(dollars in thousands)
|
CFTC
|
CURO Intermediate
|
Subsidiary Guarantors
|
Subsidiary Non-Guarantors
|
SPV Subs
|
Eliminations
|
CFTC
Consolidated
|
CURO
|
Eliminations
|
CURO Consolidated
|
||||||||||||||||||||
Revenue
|
$
|
—
|
|
$
|
—
|
|
$
|
112,123
|
|
$
|
50,258
|
|
$
|
62,199
|
|
$
|
—
|
|
$
|
224,580
|
|
$
|
—
|
|
$
|
—
|
|
$
|
224,580
|
|
Provision for losses
|
—
|
|
—
|
|
28,056
|
|
12,542
|
|
21,138
|
|
—
|
|
61,736
|
|
—
|
|
—
|
|
61,736
|
|
||||||||||
Net revenue
|
—
|
|
—
|
|
84,067
|
|
37,716
|
|
41,061
|
|
—
|
|
162,844
|
|
—
|
|
—
|
|
162,844
|
|
||||||||||
Cost of providing services:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Salaries and benefits
|
—
|
|
—
|
|
17,853
|
|
8,580
|
|
—
|
|
—
|
|
26,433
|
|
—
|
|
—
|
|
26,433
|
|
||||||||||
Occupancy
|
—
|
|
—
|
|
8,145
|
|
5,950
|
|
—
|
|
—
|
|
14,095
|
|
—
|
|
—
|
|
14,095
|
|
||||||||||
Office
|
—
|
|
—
|
|
3,764
|
|
1,104
|
|
—
|
|
—
|
|
4,868
|
|
—
|
|
—
|
|
4,868
|
|
||||||||||
Other store operating expenses
|
—
|
|
—
|
|
13,504
|
|
1,316
|
|
35
|
|
—
|
|
14,855
|
|
—
|
|
—
|
|
14,855
|
|
||||||||||
Advertising
|
—
|
|
—
|
|
4,694
|
|
2,994
|
|
—
|
|
—
|
|
7,688
|
|
—
|
|
—
|
|
7,688
|
|
||||||||||
Total cost of providing services
|
—
|
|
—
|
|
47,960
|
|
19,944
|
|
35
|
|
—
|
|
67,939
|
|
—
|
|
—
|
|
67,939
|
|
||||||||||
Gross Margin
|
—
|
|
—
|
|
36,107
|
|
17,772
|
|
41,026
|
|
—
|
|
94,905
|
|
—
|
|
—
|
|
94,905
|
|
||||||||||
Operating (income) expense:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Corporate, district and other
|
530
|
|
8
|
|
19,358
|
|
10,888
|
|
115
|
|
—
|
|
30,899
|
|
2,094
|
|
—
|
|
32,993
|
|
||||||||||
Interest expense
|
7,282
|
|
9,613
|
|
1
|
|
21
|
|
3,139
|
|
—
|
|
20,056
|
|
3,310
|
|
—
|
|
23,366
|
|
||||||||||
Intercompany interest (income) expense
|
—
|
|
(1,148
|
)
|
(2,022
|
)
|
1,314
|
|
1,856
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Loss on extinguishment of debt
|
—
|
|
11,884
|
|
—
|
|
—
|
|
—
|
|
—
|
|
11,884
|
|
574
|
|
—
|
|
12,458
|
|
||||||||||
Total operating expense
|
7,812
|
|
20,357
|
|
17,337
|
|
12,223
|
|
5,110
|
|
—
|
|
62,839
|
|
5,978
|
|
—
|
|
68,817
|
|
||||||||||
Net (loss) income before income taxes
|
(7,812
|
)
|
(20,357
|
)
|
18,770
|
|
5,549
|
|
35,916
|
|
—
|
|
32,066
|
|
(5,978
|
)
|
—
|
|
26,088
|
|
||||||||||
Provision for income tax (benefit) expense
|
(3,960
|
)
|
16,611
|
|
(2,975
|
)
|
2,044
|
|
—
|
|
—
|
|
11,720
|
|
(2,270
|
)
|
—
|
|
9,450
|
|
||||||||||
Net income (loss)
|
(3,852
|
)
|
(36,968
|
)
|
21,745
|
|
3,505
|
|
35,916
|
|
—
|
|
20,346
|
|
(3,708
|
)
|
—
|
|
16,638
|
|
||||||||||
Equity in net income (loss) of subsidiaries:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
CFTC
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
20,346
|
|
(20,346
|
)
|
—
|
|
||||||||||
CURO Intermediate
|
(36,968
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
36,968
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Guarantor Subsidiaries
|
21,745
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(21,745
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Non-Guarantor Subsidiaries
|
3,505
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(3,505
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
SPV Subs
|
35,916
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(35,916
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Net income (loss) attributable to CURO
|
$
|
(15,570
|
)
|
$
|
(36,968
|
)
|
$
|
21,745
|
|
$
|
3,505
|
|
$
|
35,916
|
|
$
|
11,718
|
|
$
|
20,346
|
|
$
|
16,638
|
|
$
|
(20,346
|
)
|
$
|
16,638
|
|
|
Three Months Ended March 31, 2018
|
|||||||||||||||||||||||||||||
(dollars in thousands)
|
CFTC
|
CURO Intermediate
|
Subsidiary Guarantors
|
Subsidiary
Non-Guarantors
|
SPV Subs
|
Eliminations
|
CFTC
Consolidated |
CURO
|
Eliminations
|
CURO Consolidated
|
||||||||||||||||||||
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net cash provided (used)
|
$
|
78,529
|
|
$
|
—
|
|
$
|
(34,233
|
)
|
$
|
4,868
|
|
$
|
14,916
|
|
$
|
3,922
|
|
$
|
68,002
|
|
$
|
(13,215
|
)
|
$
|
—
|
|
$
|
54,787
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Purchase of property, equipment and software
|
—
|
|
—
|
|
(788
|
)
|
(821
|
)
|
—
|
|
—
|
|
(1,609
|
)
|
—
|
|
—
|
|
(1,609
|
)
|
||||||||||
Cash paid for Cognical Holdings preferred shares
|
(958
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(958
|
)
|
—
|
|
—
|
|
(958
|
)
|
||||||||||
Change in restricted cash
|
—
|
|
—
|
|
—
|
|
(6
|
)
|
(5,397
|
)
|
—
|
|
(5,403
|
)
|
—
|
|
—
|
|
(5,403
|
)
|
||||||||||
Net cash provided (used)
|
(958
|
)
|
—
|
|
(788
|
)
|
(827
|
)
|
(5,397
|
)
|
—
|
|
(7,970
|
)
|
—
|
|
—
|
|
(7,970
|
)
|
||||||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Proceeds from Non-Recourse U.S. SPV facility
|
—
|
|
—
|
|
—
|
|
—
|
|
3,000
|
|
—
|
|
3,000
|
|
—
|
|
—
|
|
3,000
|
|
||||||||||
Payments on Non-Recourse U.S. SPV facility
|
—
|
|
—
|
|
—
|
|
—
|
|
(12,519
|
)
|
—
|
|
(12,519
|
)
|
—
|
|
—
|
|
(12,519
|
)
|
||||||||||
Proceeds from revolving credit facilities
|
10,000
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
10,000
|
|
—
|
|
—
|
|
10,000
|
|
||||||||||
Payments on revolving credit facilities
|
(10,000
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(10,000
|
)
|
—
|
|
—
|
|
(10,000
|
)
|
||||||||||
Proceeds from issuance of common stock
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
13,135
|
|
—
|
|
13,135
|
|
||||||||||
Payments on 12.00% Senior Secured Notes
|
(77,500
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(77,500
|
)
|
—
|
|
—
|
|
(77,500
|
)
|
||||||||||
Debt issuance costs paid
|
(71
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(71
|
)
|
—
|
|
—
|
|
(71
|
)
|
||||||||||
Net cash provided (used)
|
(77,571
|
)
|
—
|
|
—
|
|
—
|
|
(9,519
|
)
|
—
|
|
(87,090
|
)
|
13,135
|
|
—
|
|
(73,955
|
)
|
||||||||||
Effect of exchange rate changes on cash
|
—
|
|
—
|
|
—
|
|
(575
|
)
|
—
|
|
(3,922
|
)
|
(4,497
|
)
|
—
|
|
—
|
|
(4,497
|
)
|
||||||||||
Net increase (decrease) in cash
|
—
|
|
—
|
|
(35,021
|
)
|
3,466
|
|
—
|
|
—
|
|
(31,555
|
)
|
(80
|
)
|
—
|
|
(31,635
|
)
|
||||||||||
Cash at beginning of period
|
—
|
|
—
|
|
117,379
|
|
44,915
|
|
—
|
|
—
|
|
162,294
|
|
80
|
|
|
162,374
|
|
|||||||||||
Cash at end of period
|
$
|
—
|
|
$
|
—
|
|
$
|
82,358
|
|
$
|
48,381
|
|
$
|
—
|
|
$
|
—
|
|
$
|
130,739
|
|
$
|
—
|
|
$
|
—
|
|
$
|
130,739
|
|
|
Three Months Ended March 31, 2017
|
|||||||||||||||||||||||||||||
(dollars in thousands)
|
CFTC
|
CURO Intermediate
|
Subsidiary Guarantors
|
Subsidiary
Non-Guarantors
|
SPV Subs
|
Eliminations
|
CFTC
Consolidated
|
CURO
|
Eliminations
|
CURO
Consolidated |
||||||||||||||||||||
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Net cash (used) provided
|
$
|
(317,556
|
)
|
$
|
427,790
|
|
$
|
(33,328
|
)
|
$
|
(13,996
|
)
|
$
|
(891
|
)
|
$
|
(11
|
)
|
$
|
62,008
|
|
$
|
(5,083
|
)
|
$
|
—
|
|
$
|
56,925
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Purchase of property, equipment and software
|
—
|
|
—
|
|
(1,672
|
)
|
(1,421
|
)
|
—
|
|
—
|
|
(3,093
|
)
|
—
|
|
—
|
|
(3,093
|
)
|
||||||||||
Change in restricted cash
|
—
|
|
—
|
|
—
|
|
121
|
|
(7,114
|
)
|
—
|
|
(6,993
|
)
|
—
|
|
—
|
|
(6,993
|
)
|
||||||||||
Net cash used
|
—
|
|
—
|
|
(1,672
|
)
|
(1,300
|
)
|
(7,114
|
)
|
—
|
|
(10,086
|
)
|
—
|
|
—
|
|
(10,086
|
)
|
||||||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Proceeds from Non-Recourse U.S. SPV facility and ABL facility
|
—
|
|
—
|
|
—
|
|
—
|
|
19,802
|
|
—
|
|
19,802
|
|
—
|
|
—
|
|
19,802
|
|
||||||||||
Payments on Non-Recourse U.S. SPV facility and ABL facility
|
—
|
|
—
|
|
—
|
|
—
|
|
(11,797
|
)
|
—
|
|
(11,797
|
)
|
—
|
|
—
|
|
(11,797
|
)
|
||||||||||
Proceeds from issuance of 12.00% Senior Secured Notes
|
461,329
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
461,329
|
|
—
|
|
—
|
|
461,329
|
|
||||||||||
Payments on 10.75% Senior Secured Notes
|
—
|
|
(426,034
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(426,034
|
)
|
—
|
|
—
|
|
(426,034
|
)
|
||||||||||
Payments on 12.00% Senior Cash Pay Notes
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(125,000
|
)
|
—
|
|
(125,000
|
)
|
||||||||||
Dividends (paid) received
|
(130,083
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(130,083
|
)
|
130,083
|
|
—
|
|
—
|
|
||||||||||
Debt issuance costs paid
|
(13,690
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(13,690
|
)
|
—
|
|
—
|
|
(13,690
|
)
|
||||||||||
Net cash provided (used)
|
317,556
|
|
(426,034
|
)
|
—
|
|
—
|
|
8,005
|
|
—
|
|
(100,473
|
)
|
5,083
|
|
—
|
|
(95,390
|
)
|
||||||||||
Effect of exchange rate changes on cash
|
—
|
|
—
|
|
—
|
|
818
|
|
—
|
|
11
|
|
829
|
|
—
|
|
—
|
|
829
|
|
||||||||||
Net increase (decrease) in cash
|
—
|
|
1,756
|
|
(35,000
|
)
|
(14,478
|
)
|
—
|
|
—
|
|
(47,722
|
)
|
—
|
|
—
|
|
(47,722
|
)
|
||||||||||
Cash at beginning of period
|
—
|
|
1,954
|
|
127,712
|
|
63,779
|
|
—
|
|
—
|
|
193,445
|
|
80
|
|
—
|
|
193,525
|
|
||||||||||
Cash at end of period
|
$
|
—
|
|
$
|
3,710
|
|
$
|
92,712
|
|
$
|
49,301
|
|
$
|
—
|
|
$
|
—
|
|
$
|
145,723
|
|
$
|
80
|
|
$
|
—
|
|
$
|
145,803
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
||||||||||||||||||||||
|
|
March 31, 2018
|
|
March 31, 2017
|
||||||||||||||||||||||
(in thousands)
|
|
U.S.
|
Canada
|
U.K.
|
Total
|
|
U.S.
|
Canada
|
U.K.
|
Total
|
||||||||||||||||
Unsecured Installment
|
|
$
|
120,476
|
|
$
|
4,903
|
|
$
|
7,567
|
|
$
|
132,946
|
|
|
$
|
100,754
|
|
$
|
3,420
|
|
$
|
5,257
|
|
$
|
109,431
|
|
Secured Installment
|
|
26,856
|
|
—
|
|
—
|
|
26,856
|
|
|
23,669
|
|
—
|
|
—
|
|
23,669
|
|
||||||||
Open-End
|
|
25,834
|
|
1,389
|
|
—
|
|
27,223
|
|
|
17,907
|
|
—
|
|
—
|
|
17,907
|
|
||||||||
Single-Pay
|
|
26,065
|
|
34,292
|
|
3,348
|
|
63,705
|
|
|
26,327
|
|
34,179
|
|
3,284
|
|
63,790
|
|
||||||||
Ancillary
|
|
5,362
|
|
5,666
|
|
—
|
|
11,028
|
|
|
5,665
|
|
3,967
|
|
151
|
|
9,783
|
|
||||||||
Total revenue
|
|
$
|
204,593
|
|
$
|
46,250
|
|
$
|
10,915
|
|
$
|
261,758
|
|
|
$
|
174,322
|
|
$
|
41,566
|
|
$
|
8,692
|
|
$
|
224,580
|
|
|
2018
|
|
2017
|
|||||||||||||
(dollars in thousands, unaudited)
|
First
Quarter
|
|
Fourth
Quarter
|
Third
Quarter
|
Second
Quarter
|
First
Quarter
|
||||||||||
Single-pay loans:
|
|
|
|
|
|
|
||||||||||
Revenue
|
$
|
63,705
|
|
|
$
|
70,868
|
|
$
|
70,895
|
|
$
|
63,241
|
|
$
|
63,790
|
|
Provision for losses
|
11,302
|
|
|
17,952
|
|
20,632
|
|
14,289
|
|
11,399
|
|
|||||
Net revenue
|
$
|
52,403
|
|
|
$
|
52,916
|
|
$
|
50,263
|
|
$
|
48,952
|
|
$
|
52,391
|
|
Net charge-offs
|
$
|
12,698
|
|
|
$
|
17,362
|
|
$
|
20,515
|
|
$
|
13,849
|
|
$
|
12,499
|
|
Single-Pay gross combined loan balances:
|
|
|
|
|
|
|
||||||||||
Single-Pay gross combined loans receivable
(1) (2)
|
$
|
87,075
|
|
|
$
|
99,400
|
|
$
|
94,476
|
|
$
|
91,230
|
|
$
|
80,423
|
|
Single-Pay Allowance for loan losses and CSO guarantee liability
(3)
|
$
|
4,485
|
|
|
$
|
5,915
|
|
$
|
5,342
|
|
$
|
5,313
|
|
$
|
4,736
|
|
Single-Pay Allowance for loan losses and CSO guarantee liability as a percentage of Single-Pay gross combined loans receivable
|
5.2
|
%
|
|
6.0
|
%
|
5.7
|
%
|
5.8
|
%
|
5.9
|
%
|
|||||
(1)
Includes loans originated by third-party lenders through CSO programs, which are not included in our consolidated financial statements.
|
||||||||||||||||
(2) Non-GAAP measure.
|
||||||||||||||||
(3) Allowance for loan losses is reported as a contra-asset reducing gross loans receivable while the CSO guarantee liability is reported as a liability on our Condensed Consolidated Balance Sheets.
|
|
Three Months Ended
|
||||||||||||||
(in millions)
|
March 31, 2018
|
December 31, 2017
|
September 30, 2017
|
June 30, 2017
|
March 31, 2017
|
||||||||||
Company-owned gross loans receivable
|
$
|
389.8
|
|
$
|
432.8
|
|
$
|
393.4
|
|
$
|
350.3
|
|
$
|
304.8
|
|
Gross loans receivable guaranteed by the Company
|
57.1
|
|
78.8
|
|
71.2
|
|
62.1
|
|
57.8
|
|
|||||
Gross combined loans receivable
|
$
|
446.9
|
|
$
|
511.6
|
|
$
|
464.6
|
|
$
|
412.4
|
|
$
|
362.6
|
|
|
|
Three Months Ended
March 31, |
|
Change
|
|||||||||
(dollars in thousands, unaudited)
|
|
2018
|
2017
|
|
$
|
%
|
|||||||
Condensed Consolidated Statements of Income:
|
|
|
|
|
|
|
|||||||
Revenue
|
|
$
|
261,758
|
|
$
|
224,580
|
|
|
$
|
37,178
|
|
16.6
|
%
|
Provision for losses
|
|
81,031
|
|
61,736
|
|
|
19,295
|
|
31.3
|
%
|
|||
Net revenue
|
|
180,727
|
|
162,844
|
|
|
17,883
|
|
11.0
|
%
|
|||
Advertising costs
|
|
9,756
|
|
7,688
|
|
|
2,068
|
|
26.9
|
%
|
|||
Non-advertising costs of providing services
|
|
61,726
|
|
60,251
|
|
|
1,475
|
|
2.4
|
%
|
|||
Total cost of providing services
|
|
71,482
|
|
67,939
|
|
|
3,543
|
|
5.2
|
%
|
|||
Gross Margin
|
|
109,245
|
|
94,905
|
|
|
14,340
|
|
15.1
|
%
|
|||
Operating expense
|
|
|
|
|
|
|
|
||||||
Corporate, district and other
|
|
40,454
|
|
32,993
|
|
|
7,461
|
|
22.6
|
%
|
|||
Interest expense
|
|
22,349
|
|
23,366
|
|
|
(1,017
|
)
|
(4.4
|
)%
|
|||
Loss on extinguishment of debt
|
|
11,683
|
|
12,458
|
|
|
(775
|
)
|
(6.2
|
)%
|
|||
Total operating expense
|
|
74,486
|
|
68,817
|
|
|
5,669
|
|
8.2
|
%
|
|||
Net income before taxes
|
|
34,759
|
|
26,088
|
|
|
8,671
|
|
33.2
|
%
|
|||
Provision for income taxes
|
|
11,467
|
|
9,450
|
|
|
2,017
|
|
21.3
|
%
|
|||
Net income
|
|
$
|
23,292
|
|
$
|
16,638
|
|
|
$
|
6,654
|
|
40.0
|
%
|
U.S. Segment Results
|
|
|
|
|
|
|
|||||||
|
|
Three Months Ended
March 31, |
|
Change
|
|||||||||
(dollars in thousands, unaudited)
|
|
2018
|
2017
|
|
$
|
%
|
|||||||
Revenue
|
|
$
|
204,593
|
|
$
|
174,322
|
|
|
$
|
30,271
|
|
17.4
|
%
|
Provision for losses
|
|
64,333
|
|
49,194
|
|
|
15,139
|
|
30.8
|
%
|
|||
Net revenue
|
|
140,260
|
|
125,128
|
|
|
15,132
|
|
12.1
|
%
|
|||
Advertising costs
|
|
5,159
|
|
4,694
|
|
|
465
|
|
9.9
|
%
|
|||
Non-advertising costs of providing services
|
|
43,757
|
|
43,301
|
|
|
456
|
|
1.1
|
%
|
|||
Total cost of providing services
|
|
48,916
|
|
47,995
|
|
|
921
|
|
1.9
|
%
|
|||
Gross margin
|
|
91,344
|
|
77,133
|
|
|
14,211
|
|
18.4
|
%
|
|||
Corporate, district and other
|
|
30,532
|
|
25,049
|
|
|
5,483
|
|
21.9
|
%
|
|||
Interest expense
|
|
22,297
|
|
23,345
|
|
|
(1,048
|
)
|
(4.5
|
)%
|
|||
Loss on extinguishment of debt
|
|
11,683
|
|
12,458
|
|
|
(775
|
)
|
(6.2
|
)%
|
|||
Total operating expense
|
|
64,512
|
|
60,852
|
|
|
3,660
|
|
6.0
|
%
|
|||
Segment operating income
|
|
26,832
|
|
16,281
|
|
|
10,551
|
|
64.8
|
%
|
|||
Interest expense
|
|
22,297
|
|
23,345
|
|
|
(1,048
|
)
|
(4.5
|
)%
|
|||
Depreciation and amortization
|
|
3,407
|
|
3,360
|
|
|
47
|
|
1.4
|
%
|
|||
EBITDA
|
|
52,536
|
|
42,986
|
|
|
9,550
|
|
22.2
|
%
|
|||
Loss on extinguishment of debt
|
|
11,683
|
|
12,458
|
|
|
(775
|
)
|
(6.2
|
)%
|
|||
Other adjustments
|
|
(59
|
)
|
6
|
|
|
(65
|
)
|
#
|
|
|||
Share-based cash and non-cash compensation
|
|
1,842
|
|
126
|
|
|
1,716
|
|
#
|
|
|||
Transaction related costs
|
|
—
|
|
2,254
|
|
|
(2,254
|
)
|
#
|
|
|||
Adjusted EBITDA
|
|
$
|
66,002
|
|
$
|
57,830
|
|
|
$
|
8,172
|
|
14.1
|
%
|
# - Variance greater than 100% or not meaningful.
|
|
|
|
|
|
|
Canada Segment Results
|
|
|
|
|
|
|
|||||||
|
|
Three Months Ended
March 31, |
|
Change
|
|||||||||
(dollars in thousands, unaudited)
|
|
2018
|
2017
|
|
$
|
%
|
|||||||
Revenue
|
|
$
|
46,250
|
|
$
|
41,566
|
|
|
$
|
4,684
|
|
11.3
|
%
|
Provision for losses
|
|
12,550
|
|
10,228
|
|
|
2,322
|
|
22.7
|
%
|
|||
Net revenue
|
|
33,700
|
|
31,338
|
|
|
2,362
|
|
7.5
|
%
|
|||
Advertising costs
|
|
2,726
|
|
1,781
|
|
|
945
|
|
53.1
|
%
|
|||
Non-advertising costs of providing services
|
|
16,472
|
|
15,257
|
|
|
1,215
|
|
8.0
|
%
|
|||
Total cost of providing services
|
|
19,198
|
|
17,038
|
|
|
2,160
|
|
12.7
|
%
|
|||
Gross margin
|
|
14,502
|
|
14,300
|
|
|
202
|
|
1.4
|
%
|
|||
Corporate, district and other
|
|
4,897
|
|
3,375
|
|
|
1,522
|
|
45.1
|
%
|
|||
Interest expense
|
|
57
|
|
29
|
|
|
28
|
|
96.6
|
%
|
|||
Total operating expense
|
|
4,954
|
|
3,404
|
|
|
1,550
|
|
45.5
|
%
|
|||
Segment operating income
|
|
9,548
|
|
10,896
|
|
|
(1,348
|
)
|
(12.4
|
)%
|
|||
Interest expense
|
|
57
|
|
29
|
|
|
28
|
|
96.6
|
%
|
|||
Depreciation and amortization
|
|
1,128
|
|
1,119
|
|
|
9
|
|
0.8
|
%
|
|||
EBITDA
|
|
10,733
|
|
12,044
|
|
|
(1,311
|
)
|
(10.9
|
)%
|
|||
Other adjustments
|
|
16
|
|
(314
|
)
|
|
330
|
|
#
|
|
|||
Adjusted EBITDA
|
|
$
|
10,749
|
|
$
|
11,730
|
|
|
$
|
(981
|
)
|
(8.4
|
)%
|
# - Variance greater than 100% or not meaningful.
|
|
|
|
|
|
|
U.K. Segment Results
|
|
|
|
|
|
|
|||||||
|
|
Three Months Ended
March 31, |
|
Change
|
|||||||||
(dollars in thousands, unaudited)
|
|
2018
|
2017
|
|
$
|
%
|
|||||||
Revenue
|
|
$
|
10,915
|
|
$
|
8,692
|
|
|
$
|
2,223
|
|
25.6
|
%
|
Provision for losses
|
|
4,148
|
|
2,314
|
|
|
1,834
|
|
79.3
|
%
|
|||
Net revenue
|
|
6,767
|
|
6,378
|
|
|
389
|
|
6.1
|
%
|
|||
Advertising costs
|
|
1,871
|
|
1,213
|
|
|
658
|
|
54.2
|
%
|
|||
Non-advertising costs of providing services
|
|
1,497
|
|
1,693
|
|
|
(196
|
)
|
(11.6
|
)%
|
|||
Total cost of providing services
|
|
3,368
|
|
2,906
|
|
|
462
|
|
15.9
|
%
|
|||
Gross margin
|
|
3,399
|
|
3,472
|
|
|
(73
|
)
|
(2.1
|
)%
|
|||
Corporate, district and other
|
|
5,025
|
|
4,569
|
|
|
456
|
|
10.0
|
%
|
|||
Interest income
|
|
(5
|
)
|
(8
|
)
|
|
3
|
|
(37.5
|
)%
|
|||
Total operating expense
|
|
5,020
|
|
4,561
|
|
|
459
|
|
10.1
|
%
|
|||
Segment operating loss
|
|
(1,621
|
)
|
(1,089
|
)
|
|
(532
|
)
|
48.9
|
%
|
|||
Interest income
|
|
(5
|
)
|
(8
|
)
|
|
3
|
|
(37.5
|
)%
|
|||
Depreciation and amortization
|
|
126
|
|
175
|
|
|
(49
|
)
|
(28.0
|
)%
|
|||
EBITDA
|
|
(1,500
|
)
|
(922
|
)
|
|
(578
|
)
|
62.7
|
%
|
|||
Other adjustments
|
|
(36
|
)
|
(6
|
)
|
|
(30
|
)
|
#
|
|
|||
Adjusted EBITDA
|
|
$
|
(1,536
|
)
|
$
|
(928
|
)
|
|
$
|
(608
|
)
|
(65.5
|
)%
|
# - Variance greater than 100% not meaningful.
|
|
|
|
|
|
|
•
|
Adjusted Net Income and Adjusted Earnings Per Share, or the Adjusted Earnings Measures (net income plus or minus gain (loss) on extinguishment of debt, restructuring and other costs, goodwill and intangible asset impairments, transaction-related costs, share-based compensation, intangible asset amortization and cumulative tax effect of adjustments, on a total and per share basis);
|
•
|
EBITDA (earnings before interest, income taxes, depreciation and amortization);
|
•
|
Adjusted EBITDA (EBITDA plus or minus certain non-cash and other adjusting items); and
|
•
|
Gross Combined Loans Receivable (includes loans originated by third-party lenders through CSO programs which are not included in our consolidated financial statements).
|
•
|
they do not include our cash expenditures or future requirements for capital expenditures or contractual commitments;
|
•
|
they do not include changes in, or cash requirements for our working capital needs;
|
•
|
they do not include the interest expense, or the cash requirements necessary to service interest or principal payments on our debt;
|
•
|
depreciation and amortization are non-cash expense items reported in our statements of cash flows; and
|
•
|
other companies in our industry may calculate these measures differently, limiting their usefulness as comparative measures.
|
|
Three Months Ended
March 31, |
|
Change
|
|||||||||
(in thousands except per share data)
|
2018
|
2017
|
|
$
|
%
|
|||||||
Net income
|
$
|
23,292
|
|
$
|
16,638
|
|
|
$
|
6,654
|
|
40.0
|
%
|
Adjustments:
|
|
|
|
|
|
|||||||
Loss on extinguishment of debt
(1)
|
11,683
|
|
12,458
|
|
|
|
|
|||||
Transaction related costs
(2)
|
—
|
|
2,254
|
|
|
|
|
|||||
Share-based compensation
(3)
|
1,842
|
|
126
|
|
|
|
|
|||||
Intangible asset amortization
|
676
|
|
583
|
|
|
|
|
|||||
Impact of tax law changes
(6)
|
1,800
|
|
—
|
|
|
|
|
|||||
Cumulative tax effect of adjustments
|
(3,692
|
)
|
(5,582
|
)
|
|
|
|
|||||
Adjusted Net Income
|
$
|
35,601
|
|
$
|
26,477
|
|
|
$
|
9,124
|
|
34.5
|
%
|
|
|
|
|
|
|
|||||||
Net income
|
$
|
23,292
|
|
$
|
16,638
|
|
|
|
|
|||
Diluted Weighted Average Shares Outstanding
(4)
|
47,416
|
|
38,959
|
|
|
|
|
|||||
Diluted Earnings per Share
(4)
|
$
|
0.49
|
|
$
|
0.43
|
|
|
$
|
0.06
|
|
14.0
|
%
|
Per Share impact of adjustments to Net Income
(4)
|
0.26
|
|
0.25
|
|
|
|
|
|||||
Adjusted Diluted Earnings per Share
(4)
|
$
|
0.75
|
|
$
|
0.68
|
|
|
$
|
0.07
|
|
10.3
|
%
|
|
Average Exchange Rates
|
|
|
|||||||||
|
Three Months Ended March 31,
|
|
Change
|
|||||||||
|
2018
|
2017
|
|
$
|
%
|
|||||||
Canadian Dollar
|
$
|
0.7912
|
|
$
|
0.7557
|
|
|
|
$0.0355
|
|
4.7
|
%
|
British Pound Sterling
|
$
|
1.3916
|
|
$
|
1.2390
|
|
|
|
$0.1526
|
|
12.3
|
%
|
|
|
March 31,
|
|
December 31,
|
||||
(dollars in thousands)
|
|
2018
|
|
2017
|
||||
2017 Senior secured notes (due 2022)
|
|
$
|
511,493
|
|
|
$
|
585,823
|
|
Non-Recourse U.S. SPV Facility
|
|
111,151
|
|
|
120,402
|
|
||
Senior Revolver
|
|
—
|
|
|
—
|
|
||
Long-term debt
|
|
$
|
622,644
|
|
|
$
|
706,225
|
|
|
|
Three Months Ended
|
||||||
(dollars in thousands)
|
|
March 31, 2018
|
|
March 31, 2017
|
||||
Net cash provided by operating activities
|
|
$
|
54,787
|
|
|
$
|
56,925
|
|
Net cash used in investing activities
|
|
(7,970
|
)
|
|
(10,086
|
)
|
||
Net cash used in financing activities
|
|
(73,955
|
)
|
|
(95,390
|
)
|
|
By:
|
/s/ ROGER DEAN
|
|
|
Roger Dean
|
|
|
Executive Vice-President & Chief Financial Officer
|
1.
|
I have reviewed this
quarterly
report on Form
10-Q
of CURO Group Holdings Corp. (the “registrant”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
(Paragraph omitted pursuant to SEC Release Nos. 33-8238/34-47986 and 33-8392/34-49313);
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
By:
|
/s/ DON GAYHARDT
|
|
Don Gayhardt
|
|
President, Chief Executive Officer and Director
|
1.
|
I have reviewed this
quarterly
report on Form
10-Q
of CURO Group Holdings Corp. (the “registrant”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
(Paragraph omitted pursuant to SEC Release Nos. 33-8238/34-47986 and 33-8392/34-49313);
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
By:
|
/s/ ROGER DEAN
|
|
Roger Dean
|
|
Treasurer, Executive Vice President and Chief Financial Officer
|
/s/ DON GAYHARDT
|
Don Gayhardt
|
Chief Executive Officer
|
May 3, 2018
|
/s/ ROGER DEAN
|
Roger Dean
|
Chief Financial Officer
|
May 3, 2018
|