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Press Release: Enova Reports Fourth Quarter and Full Year 2020 Results

· 02/04/2021 16:16
-- Total revenue of $1.084 billion in 2020 decreased 8% from $1.175 billion in 2019. -- Gross profit margin was 63.1% in 2020, compared to 48.7% in 2019. -- Net income from continuing operations of $378 million, or $11.71 per diluted share, in 2020 increased from $128 million, or $3.72 per diluted share, in 2019. -- Full year 2020 adjusted EBITDA of $415 million, a non-GAAP measure, increased from $276 million in 2019. -- Adjusted earnings of $235 million, or $7.26 per diluted share, a non-GAAP measure, in 2020 increased from adjusted earnings of $140 million, or $4.08 per diluted share, in 2019.-- Total revenue of $264 million in the fourth quarter of 2020 decreased 24% from $345 million in the fourth quarter of 2019. -- Net revenue margin of 92.3% in the fourth quarter of 2020 compared to gross profit margin of 42.5% in the fourth quarter of 2019. -- Net income from continuing operations of $231 million, or $6.47 per diluted share, in the fourth quarter of 2020, compared to $30 million, or $0.87 per diluted share, in the fourth quarter of 2019. -- Fourth quarter 2020 adjusted EBITDA of $149 million, a non-GAAP measure, compared to $66 million in the fourth quarter of 2019. -- Adjusted earnings of $85 million, or $2.39 per diluted share, both non-GAAP measures, in the fourth quarter of 2020, compared to adjusted earnings of $31 million, or $0.92 per diluted share, in the fourth quarter of 2019.

Enova Reports Fourth Quarter and Full Year 2020 Results

- Compared to a year ago, quarterly diluted earnings per share from continuing operations increased from $0.87 to $6.47 and adjusted earnings per share increased from $0.92 to $2.39.

- Fourth quarter total company originations more than tripled from the third quarter to $536 million.

- The ratio of consolidated portfolio net charge-offs as a percentage of average combined loan and finance receivables was 4.7% in the fourth quarter, unchanged from the prior quarter and down from 15.6% a year ago.

- At December 31, cash and marketable securities totaled $388 million and available capacity on domestic committed facilities totaled $453 million.

PR Newswire

CHICAGO, Feb. 4, 2021

CHICAGO, Feb. 4, 2021 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 fourth quarter and year ended December 31, 2020.

"Our strong financial and operating performance this year in the face of a pandemic reflects the adaptability of our technology driven online business," said David Fisher, Enova's CEO. "Our sophisticated world class analytics successfully navigated the shifting market conditions allowing us to rapidly increase originations in the back half of the year. In addition, due to the strength of our operating model and balance sheet we further diversified our business through the acquisition of OnDeck. Our broad product offerings position us well to continue to support our customers, generate sustainable and profitable growth and drive shareholder value."

Fourth Quarter 2020 Summary

Full Year 2020 Summary

"Our strong financial performance this quarter reflects the continued robust credit quality of the portfolio as well as sequential growth in originations, receivables and revenue," said Steve Cunningham, CFO of Enova. "Our earnings capacity and balance sheet flexibility have us well positioned to leverage our machine learning driven analytics to continue to capture increased demand at attractive unit economics as the economy improves."

Outlook

Given the ongoing uncertainties related to COVID-19 resurgences, changes in governmental restrictions, potential economic stimulus, employment stabilization and business reopenings, the Company is not providing guidance for the first quarter of 2021.

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 fourth quarter results at 4 p.m. Central Time / 5 p.m. Eastern Time today, February 4(th) . 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 join the Enova International call. A replay of the conference call will be available until February 11, 2021, 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 International 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 10151286.

About Enova

Enova International (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 7 million customers around the globe with access to more than $40 billion in loans and financing. The financial technology company has a portfolio of trusted brands serving consumers, including CashNetUSA(R), NetCredit(R) and Simplic(R); three brands serving small businesses, Headway Capital(R), The Business Backer(R) and OnDeck(R); and offers online lending platform services to lenders. Through its Enova Decisions(TM) 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 revenue is 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

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February 04, 2021 16:16 ET (21:16 GMT)