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Press Release: Enova Reports Fourth Quarter and -2-

· 02/04/2021 16:16
ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (dollars in thousands, except per share data) (Unaudited) December 31, 2020 2019 Assets Cash and cash equivalents $297,273 $35,895 Restricted cash 71,927 45,069 Loans and finance receivables at fair value 1,241,506 -- Loans and finance receivables, net -- 1,062,650 Income taxes receivable -- 32,859 Other receivables and prepaid expenses 40,301 31,643 Property and equipment, net 79,417 54,540 Operating lease right-of-use asset 40,123 19,586 Goodwill 267,974 267,013 Intangible assets, net 26,008 2,185 Other assets 43,546 22,912 Total assets $2,108,075 $1,574,352 Liabilities and Stockholders' Equity Accounts payable and accrued expenses $124,071 $122,163 Operating lease liability 67,956 35,712 Income taxes currently payable 2,624 -- Deferred tax liabilities, net 48,129 48,683 Long-term debt 946,461 991,181 Total liabilities 1,189,241 1,197,739 Commitments and contingencies Stockholders' equity: Common stock, $0.00001 par value, 250,000,000 shares authorized, 41,936,784 and 35,764,943 shares issued and 35,762,926 and 32,974,714 outstanding as of December 31, 2020 and 2019, respectively -- -- Preferred stock, $0.00001 par value, 25,000,000 shares authorized, no shares issued and outstanding -- -- Additional paid in capital 187,981 63,791 Retained earnings 849,466 372,681 Accumulated other comprehensive loss (6,898) (3,066) Treasury stock, at cost (6,173,858 and 2,790,229 shares as of December 31, 2020 and 2019, respectively) (113,201) (56,793) Total Enova International, Inc. stockholders' equity 917,348 376,613 Noncontrolling interest 1,486 -- Total stockholders' equity 918,834 376,613 Total liabilities and stockholders' equity $2,108,075 $1,574,352 ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) (Unaudited) Three Months Ended Year Ended December 31, December 31, 2020 2019 2020 2019 Revenue $263,852 $345,262 $1,083,710 $1,174,757 Change in Fair Value (20,349) -- (399,517) -- Cost of Revenue -- (198,417) -- (602,894) Net Revenue/Gross Profit 243,503 146,845 684,193 571,863 Expenses Marketing 27,605 35,705 69,780 115,132 Operations and technology 30,812 22,909 96,284 84,262 General and administrative 56,657 24,642 140,600 109,204 Depreciation and amortization 8,288 4,007 19,732 15,055 Total Expenses 123,362 87,263 326,396 323,653 Income from Operations 120,141 59,582 357,797 248,210 Interest expense, net (27,304) (19,751) (86,691) (75,604) Foreign currency transaction gain (loss), net 521 (26) 514 (216) Gain on bargain purchase 163,999 -- 163,999 -- Loss on early extinguishment of debt (827) -- (827) (2,321) Equity method investment income 628 -- 628 -- Income before Income Taxes 257,158 39,805 435,420 170,069 Provision for income taxes 26,379 10,277 57,191 42,053 Net income from continuing operations before noncontrolling interest 230,779 29,528 378,229 128,016 Less: Net income attributable to noncontrolling interest 85 -- 85 -- Net income from continuing operations 230,694 29,528 378,144 128,016 Net loss from discontinued operations (3) (80,081) (300) (91,404) Net income (loss) attributable to Enova International, Inc. $230,691 $(50,553) $377,844 $36,612 Earnings (Loss) Per Share attributable to Enova International, Inc.: Earnings (loss) per common share -- basic: Continuing operations $6.61 $0.88 $11.86 $3.80 Discontinued operations -- (2.39) (0.01) (2.71) Earnings (loss) per common share -- basic $6.61 $(1.51) $11.85 $1.09 Earnings (loss) per common share -- diluted: Continuing operations $6.47 $0.87 $11.71 $3.72 Discontinued operations -- (2.35) (0.01) (2.66) Earnings (loss) per common share -- diluted $6.47 $(1.48) $11.70 $1.06 Weighted average common shares outstanding: Basic 34,926 33,553 31,897 33,715 Diluted 35,645 34,119 32,302 34,398 ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (dollars in thousands) (Unaudited) Year Ended December 31, 2020 2019 Cash flows provided by operating activities Cash flows from operating activities - continuing operations $ 741,171 $804,608 Cash flows from operating activities - discontinued operations (300) 44,031 Cash flows provided by operating activities 740,871 848,639 Cash flows used in investing activities Loans and finance receivables 2,986 (851,056) Acquisitions, net of cash acquired 109,920 -- Property and equipment additions (29,491) (20,062) Other investing activities 168 27 Cash flows from investing activities - continuing operations 83,583 (871,091) Cash flows from investing activities - discontinued operations -- (70,306) Total cash flows used in investing activities 83,583 (941,397) Cash flows provided by financing activities (535,974) 95,484 Effect of exchange rates on cash (244) 979 Net increase (decrease) in cash and cash equivalents and restricted cash 288,236 3,705 Less: increase in cash and cash equivalents from discontinued operations -- 26,976 Net increase (decrease) in cash, cash equivalents and restricted cash - continuing operations 288,236 30,681 Cash, cash equivalents and restricted cash at beginning of year 80,964 50,283 Cash, cash equivalents and restricted cash at end of period $ 369,200 $80,964 ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES LOANS AND FINANCE RECEIVABLES FINANCIAL AND OPERATING DATA (dollars in thousands)

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, gain on bargain purchase, losses on early extinguishment of debt, equity method investment income and acquisition-related costs 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.

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