Company Quick10K Filing
Elevate Credit
Price4.47 EPS1
Shares45 P/E7
MCap200 P/FCF1
Net Debt472 EBIT90
TEV672 TEV/EBIT7
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-06-30 Filed 2020-08-07
10-Q 2020-03-31 Filed 2020-05-08
10-K 2019-12-31 Filed 2020-02-14
10-Q 2019-09-30 Filed 2019-11-08
10-Q 2019-06-30 Filed 2019-08-09
10-Q 2019-03-31 Filed 2019-05-10
10-K 2018-12-31 Filed 2019-03-08
10-Q 2018-09-30 Filed 2018-11-09
10-Q 2018-06-30 Filed 2018-08-10
10-Q 2018-03-31 Filed 2018-05-11
10-K 2017-12-31 Filed 2018-03-09
10-Q 2017-09-30 Filed 2017-11-09
10-Q 2017-06-30 Filed 2017-08-11
10-Q 2017-03-31 Filed 2017-05-18
8-K 2020-08-06 Enter Agreement, Earnings, Off-BS Arrangement, Officers, Exhibits
8-K 2020-07-17 Officers
8-K 2020-06-29 M&A, Exhibits
8-K 2020-05-06
8-K 2020-05-01
8-K 2020-02-10
8-K 2019-11-21
8-K 2019-11-04
8-K 2019-07-29
8-K 2019-05-03
8-K 2019-04-29
8-K 2019-02-11
8-K 2019-02-06
8-K 2019-01-24
8-K 2018-10-29
8-K 2018-07-30
8-K 2018-05-31
8-K 2018-05-04
8-K 2018-04-30
8-K 2018-03-19
8-K 2018-02-08
8-K 2018-01-24
8-K 2018-01-24

ELVT 10Q Quarterly Report

Part I - Financial Information
Item 1. Financial Statements
Note 1 - Basis of Presentation and Accounting Changes
Note 2 - Earnings per Share
Note 3 - Loans Receivable and Revenue
Note 4 - Variable Interest Entities
Note 5 - Notes Payable, Net
Note 6 - Goodwill and Intangible Assets
Note 7 - Leases
Note 8 - Share - Based Compensation
Note 9 - Fair Value Measurements
Note 10 - Derivatives
Note 11 - Income Taxes
Note 12 - Commitments, Contingencies and Guarantees
Note 14 - Related Parties
Note 15 - Subsequent Events
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item 6. Exhibits
EX-10.2 exh102sgreeverempagree.htm
EX-10.3 exh1031stamendsgreever.htm
EX-10.4 exh1042ndamendsgreever.htm
EX-10.5 exh1053rdamendsgreever.htm
EX-10.6 exh1064thamendsgreever.htm
EX-31.1 exhibit31106-30x20.htm
EX-31.2 exhibit31206-30x20.htm
EX-32.1 exhibit32106-30x20.htm
EX-32.2 exhibit32206-30x20.htm

Elevate Credit Earnings 2020-06-30

Balance SheetIncome StatementCash Flow
77061646230815402017201820192020
Assets, Equity
2101651207530-152017201820192020
Rev, G Profit, Net Income
100500-50-100-1502017201820192020
Ops, Inv, Fin

Document
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q

(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2020
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________

Commission file number 001-37680

elevatelogoa57.jpg
 ELEVATE CREDIT, INC.
(Exact name of registrant as specified in its charter)
 
Delaware
 
 
 
46-4714474
State or Other Jurisdiction of
Incorporation or Organization
 
 
 
I.R.S. Employer Identification Number
4150 International Plaza,
Suite 300
 
 
 
 
 
Fort Worth,
TX
 
 
 
 
76109
Address of Principal Executive Offices
 
 
 
 
Zip Code
 
 
 
(817)
928-1500
 
 
Registrant’s Telephone Number, Including Area Code
 
 
 
 
 
 
 
Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.
Yes
No
Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).
Yes
No
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.




1



Large accelerated filer
Non-accelerated filer
Accelerated filer
Smaller reporting company
Emerging growth company
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes No

Securities registered pursuant to Section 12(b) of the Act.
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Shares, $0.0004 par value
ELVT
New York Stock Exchange

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:
Class
 
Outstanding at August 5, 2020
Common Shares, $0.0004 par value
 
40,788,816





2



TABLE OF CONTENTS
 
Part I - Financial Information
 
Item 1.
Financial Statements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Item 2.
 
Item 3.
 
Item 4.
Part II - Other Information
 
Item 1.
 
Item 1A.
 
Item 2.
 
Item 6.





3



NOTE ABOUT FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") that are based on our management’s beliefs and assumptions and on information currently available to our management. The forward-looking statements are contained throughout this Quarterly Report on Form 10-Q, including in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and "Risk Factors." Forward-looking statements include information concerning our strategy, future operations, future financial position, future revenues, projected expenses, margins, prospects and plans and objectives of management. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “anticipate,” “believe,” “could,” “seek,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” or similar expressions and the negatives of those terms. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about:
our future financial performance, including our expectations regarding our revenue, cost of revenue, growth rate of revenue, cost of borrowing, credit losses, marketing costs, net charge-offs, gross profit or gross margin, operating expenses, operating margins, loans outstanding, credit quality, ability to generate cash flow and ability to achieve and maintain future profitability;
the effects of the outbreak of the novel coronavirus ("COVID-19") on demand for our products, our business, our financial condition and results of operations, including as a result of the expansion of our payment flexibility program to provide temporary relief to certain customers, underwriting changes we and the bank originators we support are implementing to address credit risk associated with originations during the economic crisis created by the COVID-19 pandemic, and new legislation or other governmental responses to the pandemic;
the availability of debt financing, funding sources and disruptions in credit markets;
our ability to meet anticipated cash operating expenses and capital expenditure requirements, including our plans with respect to assessing minimum cash and liquidity requirements and implementing measures to ensure that our strong liquidity position is maintained through the current economic cycle;
anticipated trends, growth rates, seasonal fluctuations and challenges in our business and in the markets in which we operate;
our ability to anticipate market needs and develop new and enhanced or differentiated products, services and mobile apps to meet those needs, and our ability to successfully monetize them;
our expectations with respect to trends in our average portfolio effective annual percentage rate;
our anticipated growth and growth strategies and our ability to effectively manage that growth;
our anticipated expansion of relationships with strategic partners, including banks;
customer demand for our product and our ability to respond to fluctuations in demand;
our ability to attract potential customers and retain existing customers and our cost of customer acquisition;
the ability of customers to repay loans;
interest rates and origination fees on loans;
the impact of competition in our industry and innovation by our competitors;
our ability to attract and retain necessary qualified directors, officers and employees to expand our operations;
our reliance on third-party service providers;
our access to the automated clearing house system;
the efficacy of our marketing efforts and relationships with marketing affiliates;
our anticipated direct marketing costs and spending;
the evolution of technology affecting our products, services and markets;
continued innovation of our analytics platform, including releases of new credit models;
our ability to prevent security breaches, disruption in service and comparable events that could compromise the personal and confidential information held in our data systems, reduce the attractiveness of the platform or adversely impact our ability to service loans;

4



our ability to detect and filter fraudulent or incorrect information provided to us by our customers or by third parties;
our ability to adequately protect our intellectual property;
our compliance with applicable local, state, federal and foreign laws;
our compliance with, and the effects on our business and results of operations from, current or future applicable regulatory developments and regulations, including developments or changes from the Consumer Financial Protection Bureau ("CFPB") and developments or changes in state law;
regulatory developments or scrutiny by agencies regulating our business or the businesses of our third-party partners;
public perception of our business and industry;
the anticipated effect on our business of litigation or regulatory proceedings to which we or our officers are a party;
the anticipated effect on our business of natural or man-made catastrophes;
the increased expenses and administrative workload associated with being a public company;
failure to maintain an effective system of internal controls necessary to accurately report our financial results and prevent fraud;
our liquidity and working capital requirements;
the estimates and estimate methodologies used in preparing our consolidated financial statements;
the utility of non-GAAP financial measures;
the future trading prices of our common stock and the impact of securities analysts’ reports on these prices;
our anticipated development and release of certain products and applications and changes to certain products;
our anticipated investing activity;
trends anticipated to continue as our portfolio of loans matures; and
any future repurchases under our share repurchase program, including the timing and amount of repurchases thereunder.
We caution you that the foregoing list may not contain all of the forward-looking statements made in this Quarterly Report on Form 10-Q.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. We discuss these risks in greater detail in "Risk Factors" and elsewhere in this Quarterly Report on Form 10-Q. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Also, forward-looking statements represent our management’s beliefs and assumptions only as of the date of this Quarterly Report on Form 10-Q. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

5

Elevate Credit, Inc. and Subsidiaries


PART I - FINANCIAL INFORMATION
Item 1. Financial Statements

CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands except share amounts)
 
June 30,
2020
 
December 31,
2019
 
 
(unaudited)
 
 
ASSETS
 
 
 
 
Cash and cash equivalents*
 
$
167,735

 
$
71,215

Restricted cash
 
2,135

 
2,235

Loans receivable, net of allowance for loan losses of $59,438 and $79,912, respectively*
 
373,024

 
542,073

Prepaid expenses and other assets*
 
9,492

 
6,737

Operating lease right of use assets
 
9,286

 
10,191

Receivable from CSO lenders
 
3,854

 
8,696

Receivable from payment processors*
 
6,603

 
8,681

Deferred tax assets, net
 
22,887

 
8,784

Property and equipment, net
 
36,686

 
35,944

Goodwill, net
 
6,776

 
6,776

Intangible assets, net
 
1,193

 
1,253

Assets from discontinued operations (see Note 13)
 

 
81,002

Total assets
 
$
639,671

 
$
783,587

 
 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
Accounts payable and accrued liabilities (See Note 14)*
 
$
25,404

 
$
38,679

Operating lease liabilities
 
13,207

 
14,352

Income taxes payable
 
235

 

Deferred revenue*
 
5,310

 
12,087

Notes payable, net (See Note 14)*
 
438,174

 
525,439

Liabilities from discontinued operations (see Note 13)
 
1,209

 
36,541

Total liabilities
 
483,539

 
627,098

COMMITMENTS, CONTINGENCIES AND GUARANTEES (Note 12)
 

 

STOCKHOLDERS’ EQUITY
 
 
 
 
Preferred stock; $0.0004 par value; 24,500,000 authorized shares; None issued and outstanding at June 30, 2020 and December 31, 2019.
 

 

Common stock; $0.0004 par value; 300,000,000 authorized shares; 44,960,438 and 44,445,736 issued; 42,007,167 and 43,676,826 outstanding, respectively
 
18

 
18

Additional paid-in capital
 
198,188

 
193,061

Treasury stock; at cost; 2,953,271 and 768,910 shares of common stock, respectively
 
(7,955
)
 
(3,344
)
Accumulated deficit
 
(34,119
)
 
(34,342
)
Accumulated other comprehensive income, net of tax benefit of $0 and $1,353, respectively
 

 
1,096

Total stockholders’ equity
 
156,132

 
156,489

Total liabilities and stockholders’ equity
 
$
639,671

 
$
783,587


* These balances include certain assets and liabilities of variable interest entities (“VIEs”) that can only be used to settle the liabilities of that respective VIE. All assets of the Company are pledged as security for the Company’s outstanding debt, including debt held by the VIEs. For further information regarding the assets and liabilities included in our consolidated accounts, see Note 4—Variable Interest Entities.

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
 
6


Elevate Credit, Inc. and Subsidiaries


CONDENSED CONSOLIDATED INCOME STATEMENTS (UNAUDITED)
 
 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
(Dollars in thousands, except share and per share amounts)
2020
 
2019
 
2020
 
2019
Revenues
 
$
117,991

 
$
150,374

 
$
280,458

 
$
310,440

Cost of sales:
 
 
 
 
 
 
 
 
      Provision for loan losses
 
41,477

 
68,282

 
120,052

 
143,637

      Direct marketing costs
 
344

 
11,074

 
11,313

 
18,271

      Other cost of sales
 
1,607

 
2,508

 
4,277

 
4,786

Total cost of sales
 
43,428

 
81,864

 
135,642

 
166,694

Gross profit
 
74,563

 
68,510

 
144,816

 
143,746

Operating expenses:
 
 
 
 
 
 
 
 
Compensation and benefits
 
16,844

 
21,938

 
40,318

 
44,139

Professional services
 
8,471

 
7,686

 
16,397

 
15,864

Selling and marketing
 
904

 
1,460

 
1,858

 
2,552

Occupancy and equipment
 
4,843

 
4,013

 
9,479

 
7,835

Depreciation and amortization
 
4,529

 
3,955

 
8,825

 
7,811

Other
 
907

 
1,505

 
1,978

 
2,622

Total operating expenses
 
36,498

 
40,557

 
78,855

 
80,823

Operating income
 
38,065

 
27,953

 
65,961

 
62,923

Other expense:
 
 
 
 
 
 
 
 
Net interest expense (See Note 14)
 
(12,177
)
 
(16,936
)
 
(25,833
)
 
(34,936
)
Non-operating loss
 
(1,422
)
 

 
(5,685
)
 

Total other expense
 
(13,599
)
 
(16,936
)
 
(31,518
)
 
(34,936
)
Income from continuing operations before taxes
 
24,466

 
11,017

 
34,443

 
27,987

Income tax expense
 
8,373

 
2,634

 
10,428

 
8,649

Net income from continuing operations
 
16,093


8,383


24,015


19,338

Net loss from discontinued operations
 
(7,540
)

(2,611
)

(20,373
)

(208
)
Net income
 
$
8,553


$
5,772


$
3,642


$
19,130

 
 
 
 
 
 
 
 
 
Basic income per share
 
 
 
 
 
 
 
 
Continuing operations
 
$
0.38


$
0.19


$
0.56


$
0.44

Discontinued operations
 
(0.18
)

(0.06
)

(0.47
)


Basic earnings per share
 
$
0.20


$
0.13


$
0.09


$
0.44

 
 







Diluted income per share
 







Continuing operations
 
$
0.38


$
0.19


$
0.56


$
0.44

Discontinued operations
 
(0.18
)

(0.06
)

(0.47
)

(0.01
)
Diluted earnings per share
 
$
0.20


$
0.13


$
0.09


$
0.43

 
 







Basic weighted average shares outstanding
 
42,182,412


43,681,159


42,673,879


43,514,862

Diluted weighted average shares outstanding
 
42,511,808


44,291,816


43,090,730


44,142,947


The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
 
7

Elevate Credit, Inc. and Subsidiaries


CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
(Dollars in thousands)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
2020
 
2019
 
2020
 
2019
Net income
 
$
8,553

 
$
5,772

 
$
3,642

 
$
19,130

Other comprehensive (loss) income, net of tax:
 
 
 
 
 
 
 
 
Foreign currency translation adjustment, net of tax of $0 and $1 for the three months ended 2020 and 2019, respectively, and $(14) and $(1) for the six months ended 2020 and 2019, respectively
 
(58
)
 
(724
)
 
(2,061
)
 
(59
)
Reclassification to Net loss from discontinued operations, net of tax of $1,369 and $0 for the three and six months ended 2020 and 2019, respectively
 
965

 

 
965

 

Change in derivative valuation, net of tax of $0 and $(95) for the three and six months ended 2020 and 2019, respectively
 

 

 

 
(208
)
Total other comprehensive (loss) income, net of tax
 
907

 
(724
)
 
(1,096
)
 
(267
)
Total comprehensive income
 
$
9,460

 
$
5,048

 
$
2,546

 
$
18,863


The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
 
8

Elevate Credit, Inc. and Subsidiaries


CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)
For the periods ended June 30, 2020 and 2019
(Dollars in thousands except share amounts)
 
Preferred Stock
 
 
 
Common Stock
 
Additional
paid-in
capital
 
Treasury Stock
 
Accumulated
deficit
 
Accumulated
other
comprehensive
income (loss)
 
Total
Shares
 
Amount
 
Shares
 
Amount
 
Shares
 
Amount
Balances at December 31, 2018
 

 

 
43,329,262

 
$
18

 
$
183,244

 

 
$

 
$
(66,525
)
 
$
54

 
$
116,791

Share-based compensation -US
 

 

 

 

 
4,922

 

 

 

 

 
4,922

Share-based compensation -UK
 

 

 

 

 
(11
)
 

 

 

 

 
(11
)
Exercise of stock options
 

 

 
25,000

 

 
81

 

 

 

 

 
81

Vesting of restricted stock units
 

 

 
677,343

 

 
(1,211
)
 

 

 

 

 
(1,211
)
ESPP shares issued
 

 

 
142,267

 

 
498

 

 

 

 

 
498

Tax benefit of equity issuance costs
 

 

 

 

 
(2
)
 

 

 

 

 
(2
)
Comprehensive loss:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustment net of tax benefit of $(1)
 

 

 

 

 

 

 

 

 
(59
)
 
(59
)
Change in derivative valuation net of tax benefit of $(95)
 

 

 

 

 

 

 

 

 
(208
)
 
(208
)
Net income from continuing operations
 

 

 

 

 

 

 

 
19,338

 

 
19,338

Net loss from discontinued operations
 

 

 

 

 

 

 

 
(208
)
 

 
(208
)
Balances at June 30, 2019
 

 

 
44,173,872

 
$
18

 
$
187,521

 

 
$

 
$
(47,395
)
 
$
(213
)
 
$
139,931

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balances at December 31, 2019
 

 

 
43,676,826

 
18

 
193,061

 
768,910

 
(3,344
)
 
(34,342
)
 
1,096

 
156,489

Share-based compensation -US
 

 

 

 

 
5,347

 

 

 

 

 
5,347

Share-based compensation -UK
 

 

 

 

 
45

 

 

 

 

 
45

Exercise of stock options
 

 

 
34,185

 

 
(51
)
 

 

 

 

 
(51
)
Vesting of restricted stock units
 

 

 
199,933

 

 
(567
)
 

 

 

 

 
(567
)
ESPP shares issued
 

 

 
280,584

 

 
353

 

 

 

 

 
353

Comprehensive loss:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustment net of tax of $1,355
 

 

 

 

 

 

 

 

 
(1,096
)
 
(1,096
)
Treasury stock reissued for RSUs vesting
 

 

 
785,218

 

 

 
(785,218
)
 
3,419

 
(3,419
)
 

 

Treasury stock acquired
 

 

 
(2,969,579
)
 

 

 
2,969,579

 
(8,030
)
 

 

 
(8,030
)
Net income from continuing operations
 

 

 

 

 

 

 

 
24,015

 

 
24,015

Net loss from discontinued operations
 

 

 

 

 

 

 

 
(20,373
)
 

 
(20,373
)
Balances at June 30, 2020
 

 

 
42,007,167

 
$
18

 
$
198,188

 
2,953,271

 
$
(7,955
)
 
$
(34,119
)
 
$

 
$
156,132


The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
 
9

Elevate Credit, Inc. and Subsidiaries


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in thousands)
Six Months Ended June 30,
2020
 
2019
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
Net income
$
3,642

 
$
19,130

Less: Net loss from discontinued operations, net of tax
(20,373
)
 
(208
)
Net income from continuing operations
24,015

 
19,338

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
8,825

 
7,812

Provision for loan losses
120,052

 
143,637

Share-based compensation
5,347

 
4,922

Amortization of debt issuance costs
343

 
278

Amortization of loan premium
2,740

 
2,981

Amortization of derivative assets

 
108

Amortization of operating leases
(239
)
 
145

Deferred income tax expense, net
10,096

 
8,117

Non-operating loss
5,685

 

Changes in operating assets and liabilities:
 
 
 
Prepaid expenses and other assets
(3,219
)
 
(186
)
Income taxes payable
700

 

Receivables from payment processors
2,077

 
(612
)
Receivables from CSO lenders
4,842

 
5,937

Interest receivable
(26,124
)
 
(32,109
)
State and other taxes payable
(91
)
 
232

Deferred revenue
(6,226
)
 
(9,583
)
Accounts payable and accrued liabilities
(17,579
)
 
1,461

Net cash provided by continuing operating activities
131,244

 
152,478

Net cash provided by discontinued operating activities
1,335

 
16,949

Net cash provided by operating activities
132,579

 
169,427

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
Loans receivable originated or participations purchased
(307,170
)
 
(484,601
)
Principal collections and recoveries on loans receivable
379,791

 
387,529

Participation premium paid
(2,036
)
 
(2,491
)
Purchases of property and equipment
(9,508
)
 
(9,750
)
Net cash provided by (used in) continuing investing activities
61,077

 
(109,313
)
Net cash provided by (used in) discontinued investing activities
9,457

 
(18,016
)
Net cash provided by (used in) investing activities
70,534

 
(127,329
)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
 
10

Elevate Credit, Inc. and Subsidiaries


 
 
Six Months Ended June 30,
(Dollars in thousands)
 
2020
 
2019
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
Proceeds from notes payable
 
$
6,500

 
$
27,000

Payments of notes payable
 
(94,000
)
 
(60,000
)
Debt issuance costs paid
 
(108
)
 
(2,598
)
Debt prepayment costs paid
 

 
(850
)
ESPP shares issued
 
354

 
498

Common stock repurchased
 
(8,030
)
 

Proceeds from stock option exercises
 
27

 
81

Taxes paid related to net share settlement of equity awards
 
(644
)
 
(1,211
)
Net cash used in continuing financing activities
 
(95,901
)
 
(37,080
)
Net cash used in discontinued financing activities
 
(16,310
)
 
0

Net cash used in financing activities
 
(112,211
)
 
(37,080
)
Net increase in cash, cash equivalents and restricted cash