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Press Release: Enova Reports Fourth Quarter and -3-

· 02/04/2021 16:16
The following table shows loans and finance receivables and related loan loss activity, which is based on loan and finance receivable balances, for continuing operations for the three months ended December 31, 2020 and 2019. Three Months Ended December 31 2020 2019 Change -------------------- Ending combined loan and finance receivable principal balance: Company owned $1,263,134 $1,121,408 $141,726 Guaranteed by the Company(a) 8,845 27,455 (18,610) Total combined loan and finance receivable principal balance(b) $1,271,979 $1,148,863 $123,116 Ending combined loan and finance receivable fair value balance: Company owned $1,241,506 N/A N/A Guaranteed by the Company(a) 10,289 N/A N/A Ending combined loan and finance receivable fair value balance(b) $1,251,795 N/A N/A Fair value as a % of principal(c) 98.4 % N/A N/A Ending combined loan and finance receivable balance, including principal and accrued fees/interest outstanding: Company owned $1,310,171 $1,210,262 $99,909 Guaranteed by the Company(a) 10,163 27,560 (17,397) Ending combined loan and finance receivable balance(b) $1,320,334 $1,237,822 $82,512 Ending allowance for loan losses (prior to FVO adoption) N/A $178,450 N/A Allowance for losses as a % of combined loan and finance receivable balance(c) N/A 14.4 % N/A Average combined loan and finance receivable balance, including principal and accrued fees/interest outstanding: Company owned(d) $1,153,358 $1,141,802 $11,556 Guaranteed by the Company(a)(d) 8,861 24,723 (15,862) Average combined loan and finance receivable balance(a)(d) $1,162,219 $1,166,525 $(4,306) Revenue $261,299 $343,144 $(81,845) Change in fair value/cost of revenue (20,349) (198,417) 178,068 Net revenue/gross profit 240,950 144,727 96,223 Gross profit margin/net revenue margin 92.2 % 42.2 % 50.0 % Change in fair value/cost of revenue as a % of average loan and finance receivable balance(d) 1.8 % 17.0 % (15.2) % Delinquencies: -------------------- >30 days delinquent $122,666 $83,315 $39,351 >30 days delinquent as a % of loan and finance receivable balance(c) 9.3 % 6.7 % 2.6 % Charge-offs: -------------------- Charge-offs (net of recoveries) $55,087 $181,465 $(126,378) Charge-offs (net of recoveries) as a % of average loan and finance receivable balance(d) 4.7 % 15.6 % (10.9) % (a) Represents loans originated by third-party lenders through the CSO programs, which are not included in our consolidated balance sheets. (b) Non-GAAP measure. (c) Determined using period-end balances. (d) The average combined loan and finance receivable balance is the average of the month-end balances during the period. 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 Year Ended December 31, December 31, 2020 2019 2020 2019 Net income from continuing operations $230,694 $29,528 $378,144 $128,016 Adjustments: Gain on bargain purchase(a) (163,999) -- (163,999) -- Loss on early extinguishment of debt(b) 827 -- 827 2,321 Acquisition-related costs(c) 13,430 -- 20,023 -- Lease termination and cease use costs(d) -- -- -- 726 Intangible asset amortization 1,215 267 1,777 1,070 Stock-based compensation expense 7,153 2,183 18,041 11,967 Foreign currency transaction (gain) loss(e) (506) 26 (499) 216 Cumulative tax effect of adjustments (3,787) (693) (8,038) (3,907) Discrete tax adjustments(f) -- -- (11,604) (141) Adjusted earnings $85,027 $31,311 $234,672 $140,268 Diluted earnings per share $6.47 $0.87 $11.71 $3.72 Adjusted earnings per share $2.39 $0.92 $7.26 $4.08 Adjusted EBITDA Three Months Ended Year Ended December 31, December 31, 2020 2019 2020 2019 Net income from continuing operations $230,694 $29,528 $378,144 $128,016 Depreciation and amortization expenses(e) 8,282 4,007 19,726 15,055 Interest expense, net(e) 27,120 19,751 86,507 75,604 Foreign currency transaction (gain) loss(e) (506) 26 (499) 216 Provision for income taxes 26,379 10,277 57,191 42,053 Stock-based compensation expense 7,153 2,183 18,041 11,967 Adjustments: Lease termination and cease use costs(d) -- -- -- 370 Gain on bargain purchase(a) (163,999) -- (163,999) -- Loss on early extinguishment of debt(b) 827 -- 827 2,321 Equity method investment income (628) -- (628) -- Acquisition-related costs(c) 13,430 -- 20,023 -- Adjusted EBITDA $148,752 $65,772 $415,333 $275,602 Adjusted EBITDA margin calculated as follows: Total Revenue $263,852 $345,262 $1,083,710 $1,174,757 Adjusted EBITDA 148,752 65,772 415,333 275,602 Adjusted EBITDA as a percentage of total revenue 56.4 % 19.0 % 38.3 % 23.5 % (a) In the fourth quarter of 2020, the Company recorded a $164.0 million gain on bargain purchase related to an acquisition. (b) In the fourth quarter of 2020, the Company recorded a loss on early extinguishment of debt of $0.8 million ($0.6 million net of tax) related to the repurchase of securitization notes. In the first quarter of 2019, the Company recorded a loss on early extinguishment of debt of $2.3 million ($1.8 million net of tax) related to the repurchase of $44.1 million principal amount of securitization notes. (c) In the fourth and third quarters of 2020, the Company incurred expenses totaling $13.4 million ($12.0 million net of tax) and $6.6 million ($5.0 million net of tax), respectively, related to an acquisition. (d) 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. (e) Excludes amounts attributable to noncontrolling interests. (f) In the third quarter of 2020, the Company recognized an $11.6 million income tax benefit resulting from the release of its liability for certain previously unrecognized tax benefits. 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.

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SOURCE Enova International, Inc.

/CONTACT: Public Relations Contact: Kaitlin Lowey, Email: media@enova.com; Investor Relations Contact: Monica Gould, Office: (212) 871-3927, Email: IR@enova.com; Lindsay Savarese, Office: (212) 331-8417, Email: IR@enova.com

/Web site: http://www.enova.com

(END) Dow Jones Newswires

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