falsedesktopELVT2020-09-30000165109420000051{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "4150 International Plaza\tSuite 300\t\t\t\nFort Worth\tTX\t\t\t76109\nAddress of Principal Executive Offices\t\t\t\tZip Code\n\t\t(817)\t928-1500\t\nRegistrant's Telephone Number Including Area Code\t\t\t\t\nFormer Name Former Address and Former Fiscal Year if Changed Since Last Report\t\t\t\t\n", "q10k_tbl_1": "Large accelerated filer\t☐\tNon-accelerated filer\t☐\nAccelerated filer\t☒\tSmaller reporting company\t☒\nEmerging growth company\t☒\t\t\n", "q10k_tbl_2": "Note About Forward-Looking Statements\t\t\t4\nPart I - Financial Information\t\t\t\n\tItem 1.\tFinancial Statements\t\n\t\tCondensed Consolidated Balance Sheets as of September 30 2020 (unaudited) and December 31 2019\t6\n\t\tUnaudited Condensed Consolidated Income Statements for the three and nine months ended September 30 2020 and 2019\t7\n\t\tUnaudited Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30 2020 and 2019\t8\n\t\tUnaudited Condensed Consolidated Statements of Stockholders' Equity for the nine months ended September 30 2020 and 2019\t9\n\t\tUnaudited Condensed Consolidated Statements of Cash Flows for the nine months ended September 30 2020 and 2019\t10\n\t\tNotes to Unaudited Condensed Consolidated Financial Statements\t12\n\tItem 2.\tManagement's Discussion and Analysis of Financial Condition and Results of Operations\t44\n\tItem 3.\tQuantitative and Qualitative Disclosures About Market Risk\t87\n\tItem 4.\tControls and Procedures\t88\nPart II - Other Information\t\t\t\n\tItem 1.\tLegal Proceedings\t89\n\tItem 1A.\tRisk Factors\t90\n\tItem 2.\tUnregistered Sales of Equity Securities and Use of Proceeds\t123\n\tItem 6.\tExhibits\t124\nSIGNATURES\t\t\t125\n", "q10k_tbl_3": "(Dollars in thousands except share amounts)\tSeptember 30 2020\tDecember 31 2019\n\t(unaudited)\t\nASSETS\t\t\nCash and cash equivalents*\t224259\t71215\nRestricted cash\t3135\t2235\nLoans receivable net of allowance for loan losses of $49909 and $79912 respectively*\t341942\t542073\nPrepaid expenses and other assets*\t9576\t6737\nOperating lease right of use assets\t8811\t10191\nReceivable from CSO lenders\t5260\t8696\nReceivable from payment processors*\t5210\t8681\nDeferred tax assets net\t22742\t8784\nProperty and equipment net\t35488\t35944\nGoodwill net\t6776\t6776\nIntangible assets net\t1163\t1253\nAssets from discontinued operations (see Note 13)\t0\t81002\nTotal assets\t664362\t783587\nLIABILITIES AND STOCKHOLDERS' EQUITY\t\t\nAccounts payable and accrued liabilities (See Note 14)*\t35457\t38679\nOperating lease liabilities\t12593\t14352\nIncome taxes payable\t691\t0\nDeferred revenue*\t5911\t12087\nNotes payable net (See Note 14)*\t438200\t525439\nLiabilities from discontinued operations (see Note 13)\t0\t36541\nTotal liabilities\t492852\t627098\nCOMMITMENTS CONTINGENCIES AND GUARANTEES (Note 12)\t\t\nSTOCKHOLDERS' EQUITY\t\t\nPreferred stock; $0.0004 par value; 24500000 authorized shares; none issued and outstanding at September 30 2020 and December 31 2019.\t0\t0\nCommon stock; 0.0004 par value; 300000000 authorized shares; 44960438 and 44445736 issued; 39082894 and 43676826 outstanding respectively\t18\t18\nAdditional paid-in capital\t199194\t193061\nTreasury stock; at cost; 5877544 and 768910 shares of common stock respectively\t(13775)\t(3344)\nAccumulated deficit\t(13927)\t(34342)\nAccumulated other comprehensive income net of tax benefit of $0 and $1353 respectively\t0\t1096\nTotal stockholders' equity\t171510\t156489\nTotal liabilities and stockholders' equity\t664362\t783587\n", "q10k_tbl_4": "\t\tThree Months Ended September 30\t\t\t\tNine Months Ended September 30\t\t\n(Dollars in thousands except share and per share amounts)\t2020\t\t2019\t\t2020\t\t2019\nRevenues\t\t94164\t\t164296\t\t374622\t\t474736\nCost of sales:\t\t\t\t\t\t\t\t\nProvision for loan losses\t\t13164\t\t91702\t\t133216\t\t235339\nDirect marketing costs\t\t2585\t\t10927\t\t13898\t\t29198\nOther cost of sales\t\t1672\t\t2447\t\t5949\t\t7233\nTotal cost of sales\t\t17421\t\t105076\t\t153063\t\t271770\nGross profit\t\t76743\t\t59220\t\t221559\t\t202966\nOperating expenses:\t\t\t\t\t\t\t\t\nCompensation and benefits\t\t23921\t\t23289\t\t64239\t\t67428\nProfessional services\t\t8236\t\t7552\t\t24633\t\t23416\nSelling and marketing\t\t610\t\t1117\t\t2468\t\t3669\nOccupancy and equipment\t\t4717\t\t3887\t\t14196\t\t11722\nDepreciation and amortization\t\t4588\t\t4013\t\t13413\t\t11824\nOther\t\t590\t\t1045\t\t2568\t\t3667\nTotal operating expenses\t\t42662\t\t40903\t\t121517\t\t121726\nOperating income\t\t34081\t\t18317\t\t100042\t\t81240\nOther expense:\t\t\t\t\t\t\t\t\nNet interest expense (See Note 14)\t\t(11575)\t\t(13629)\t\t(37408)\t\t(48565)\nNon-operating loss\t\t(1007)\t\t(695)\t\t(6692)\t\t(695)\nTotal other expense\t\t(12582)\t\t(14324)\t\t(44100)\t\t(49260)\nIncome from continuing operations before taxes\t\t21499\t\t3993\t\t55942\t\t31980\nIncome tax expense\t\t4883\t\t1345\t\t15311\t\t9994\nNet income from continuing operations\t\t16616\t\t2648\t\t40631\t\t21986\nNet income (loss) from discontinued operations\t\t4465\t\t2116\t\t(15908)\t\t1908\nNet income\t\t21081\t\t4764\t\t24723\t\t23894\nBasic income per share\t\t\t\t\t\t\t\t\nContinuing operations\t\t0.41\t\t0.06\t\t0.97\t\t0.50\nDiscontinued operations\t\t0.11\t\t0.05\t\t(0.38)\t\t0.05\nBasic earnings per share\t\t0.52\t\t0.11\t\t0.59\t\t0.55\nDiluted income per share\t\t\t\t\t\t\t\t\nContinuing operations\t\t0.41\t\t0.06\t\t0.95\t\t0.50\nDiscontinued operations\t\t0.11\t\t0.05\t\t(0.37)\t\t0.04\nDiluted earnings per share\t\t0.52\t\t0.11\t\t0.58\t\t0.54\nBasic weighted average shares outstanding\t\t40230256\t\t44169964\t\t41856894\t\t43736458\nDiluted weighted average shares outstanding\t\t40762330\t\t44743944\t\t42624808\t\t44320427\n", "q10k_tbl_5": "(Dollars in thousands)\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n2020\t2019\t2020\t2019\nNet income\t21081\t4764\t24723\t23894\nOther comprehensive (loss) income net of tax:\t\t\t\t\nForeign 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 nine months ended 2020 and 2019 respectively\t0\t(821)\t(2061)\t(880)\nReclassification to Net loss from discontinued operations net of tax of $0 and $1369 for the three and nine months ended 2020 respectively and $0 for the three and nine months ended 2019 respectively\t0\t0\t965\t0\nChange in derivative valuation net of tax of $0 for the three and nine months ended September 30 2020 and $0 and $(95) for the three and nine months ended September 30 2019 respectively\t0\t0\t0\t(208)\nTotal other comprehensive (loss) income net of tax\t0\t(821)\t(1096)\t(1088)\nTotal comprehensive income\t21081\t3943\t23627\t22806\n", "q10k_tbl_6": "(Dollars in thousands except share amounts)\tPreferred Stock\t\tCommon Stock\t\tAdditional paid-in capital\tTreasury Stock\t\tAccumulated deficit\tAccumulated other comprehensive income (loss)\tTotal\nShares\tAmount\tShares\tAmount\tShares\tAmount\nBalances at December 31 2018\t0\t0\t43329262\t18\t183244\t0\t0\t(66525)\t54\t116791\nShare-based compensation -US\t0\t0\t0\t0\t7286\t0\t0\t0\t0\t7286\nShare-based compensation -UK\t0\t0\t0\t0\t(14)\t0\t0\t0\t0\t(14)\nExercise of stock options net\t0\t0\t37500\t0\t121\t0\t0\t0\t0\t121\nVesting of restricted stock units net\t0\t0\t733447\t0\t(1350)\t0\t0\t0\t0\t(1350)\nESPP shares issued\t0\t0\t142267\t0\t498\t0\t0\t0\t0\t498\nTax benefit of equity issuance costs\t0\t0\t0\t0\t(2)\t0\t0\t0\t0\t(2)\nComprehensive loss:\t\t\t\t\t\t\t\t\t\t\nForeign currency translation adjustment net of tax of $(1)\t0\t0\t0\t0\t0\t0\t0\t0\t(880)\t(880)\nChange in derivative valuation net of tax of $(95)\t0\t0\t0\t0\t0\t0\t0\t0\t(208)\t(208)\nTreasury stock acquired\t0\t0\t(91370)\t0\t0\t91370\t(434)\t0\t0\t(434)\nNet income from continuing operations\t0\t0\t0\t0\t0\t0\t0\t21986\t0\t21986\nNet income from discontinued operations\t0\t0\t0\t0\t0\t0\t0\t1908\t0\t1908\nBalances at September 30 2019\t0\t0\t44151106\t18\t189783\t91370\t(434)\t(42631)\t(1034)\t145702\nBalances at December 31 2019\t0\t0\t43676826\t18\t193061\t768910\t(3344)\t(34342)\t1096\t156489\nShare-based compensation -US\t0\t0\t0\t0\t6513\t0\t0\t0\t0\t6513\nShare-based compensation -UK\t0\t0\t0\t0\t45\t0\t0\t0\t0\t45\nExercise of stock options net\t0\t0\t34185\t0\t(51)\t0\t0\t0\t0\t(51)\nVesting of restricted stock units net\t0\t0\t199933\t0\t(727)\t0\t0\t0\t0\t(727)\nESPP shares issued\t0\t0\t280584\t0\t353\t0\t0\t0\t0\t353\nComprehensive loss:\t\t\t\t\t\t\t\t\t\t\nForeign currency translation adjustment net of tax of $(14)\t0\t0\t0\t0\t0\t0\t0\t0\t(2061)\t(2061)\nReclassification to Net income (loss) from discontinued operations net of tax of $1369\t0\t0\t0\t0\t0\t0\t0\t0\t965\t965\nTreasury stock reissued for RSUs vesting\t0\t0\t983625\t0\t0\t(983625)\t4308\t(4308)\t0\t0\nTreasury stock acquired\t0\t0\t(6092259)\t0\t0\t6092259\t(14739)\t0\t0\t(14739)\nNet income from continuing operations\t0\t0\t0\t0\t0\t0\t0\t40631\t0\t40631\nNet loss from discontinued operations\t0\t0\t0\t0\t0\t0\t0\t(15908)\t0\t(15908)\nBalances at September 30 2020\t0\t0\t39082894\t18\t199194\t5877544\t(13775)\t(13927)\t0\t171510\n", "q10k_tbl_7": "(Dollars in thousands)\tNine Months Ended September 30\t\t\n2020\t\t2019\nCASH FLOWS FROM OPERATING ACTIVITIES:\t\t\t\nNet income\t24723\t\t23894\nLess: Net (income) loss from discontinued operations net of tax\t15908\t\t(1908)\nNet income from continuing operations\t40631\t\t21986\nAdjustments to reconcile net income to net cash provided by operating activities:\t\t\t\nDepreciation and amortization\t13413\t\t11824\nProvision for loan losses\t133216\t\t235339\nShare-based compensation\t6513\t\t7272\nAmortization of debt issuance costs\t515\t\t449\nAmortization of loan premium\t3734\t\t4454\nAmortization of derivative assets\t0\t\t108\nAmortization of operating leases\t(378)\t\t113\nDeferred income tax expense net\t14178\t\t9418\nNon-operating loss\t6692\t\t695\nChanges in operating assets and liabilities:\t\t\t\nPrepaid expenses and other assets\t(3305)\t\t(486)\nIncome taxes payable\t1156\t\t0\nReceivables from payment processors\t3470\t\t2022\nReceivables from CSO lenders\t3436\t\t6489\nInterest receivable\t(30417)\t\t(53803)\nState and other taxes payable\t(91)\t\t68\nDeferred revenue\t(5558)\t\t(10670)\nAccounts payable and accrued liabilities\t(9500)\t\t4565\nNet cash provided by continuing operating activities\t177705\t\t239843\nNet cash provided by discontinued operating activities\t1286\t\t29261\nNet cash provided by operating activities\t178991\t\t269104\nCASH FLOWS FROM INVESTING ACTIVITIES:\t\t\t\nLoans receivable originated or participations purchased\t(419472)\t\t(771835)\nPrincipal collections and recoveries on loans receivable\t514316\t\t580002\nParticipation premium paid\t(2823)\t\t(4530)\nPurchases of property and equipment\t(12867)\t\t(14881)\nNet cash provided by (used in) continuing investing activities\t79154\t\t(211244)\nNet cash provided by (used in) discontinued investing activities\t9457\t\t(23006)\nNet cash provided by (used in) investing activities\t88611\t\t(234250)\n", "q10k_tbl_8": "\tNine Months Ended September 30\t\n(Dollars in thousands)\t2020\t2019\nCASH FLOWS FROM FINANCING ACTIVITIES:\t\t\nProceeds from notes payable\t6500\t49000\nPayments of notes payable\t(94000)\t(60000)\nDebt issuance costs paid\t(253)\t(2593)\nDebt prepayment costs paid\t0\t(850)\nESPP shares issued\t354\t498\nCommon stock repurchased\t(14739)\t(434)\nProceeds from stock option exercises\t27\t121\nTaxes paid related to net share settlement of equity awards\t(804)\t(1349)\nNet cash used in continuing financing activities\t(102915)\t(15607)\nNet cash used in discontinued financing activities\t(16310)\t(4)\nNet cash used in financing activities\t(119225)\t(15611)\nNet increase in cash cash equivalents and restricted cash\t148377\t19243\nChange in cash cash equivalents and restricted cash from discontinued operations\t5567\t(6251)\nChange in cash cash equivalents and restricted cash from continuing operations\t153944\t12992\nCash and cash equivalents beginning of period\t71215\t48349\nRestricted cash beginning of period\t2235\t2535\nCash cash equivalents and restricted cash beginning of period\t73450\t50884\nCash and cash equivalents end of period\t224259\t61641\nRestricted cash end of period\t3135\t2235\nCash cash equivalents and restricted cash end of period\t227394\t63876\nSupplemental cash flow information:\t\t\nInterest paid\t36979\t49877\nTaxes paid\t397\t565\nNon-cash activities:\t\t\nCSO fees charged-off included in Deferred revenues and Loans receivable\t684\t4174\nCSO fees on loans paid-off prior to maturity included in Receivable from CSO lenders and Deferred revenue\t42\t159\nAnnual membership fee included in Deferred revenues and Loans receivable\t108\t72\nReissuances of Treasury stock\t4308\t0\nChanges in fair value of interest rate caps\t0\t304\nTax benefit of equity issuance costs included in Additional paid-in capital\t0\t2\nImpact of deferred tax asset included in Other comprehensive income\t1354\t36\nLeasehold improvements allowance included in Property and equipment net\t0\t439\nLease incentive allowance included in Accounts payable and accrued expenses\t0\t3720\nOperating lease right of use assets recognized\t0\t11809\nOperating lease liabilities recognized\t0\t15966\n", "q10k_tbl_9": "(Dollars in thousands)\tThree Months Ended September 30 2019\nAs reported:\t\nForeign currency translation adjustment net of tax of $(1)\t821\nTotal other comprehensive income net of tax\t821\nTotal comprehensive income\t5585\nAs corrected:\t\nForeign currency translation adjustment net of tax of $1\t(821)\nTotal other comprehensive income net of tax\t(821)\nTotal comprehensive income\t3943\n", "q10k_tbl_10": "(Dollars in thousands)\tSeptember 30 2020\tDecember 31 2019\nProperty and equipment gross\t113547\t100766\nAccumulated depreciation and amortization\t(78059)\t(64822)\nProperty and equipment net\t35488\t35944\n", "q10k_tbl_11": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n(Dollars in thousands except share and per share amounts)\t2020\t2019\t2020\t2019\nNumerator (basic and diluted):\t\t\t\t\nNet income from continuing operations\t16616\t2648\t40631\t21986\nNet income (loss) from discontinued operations\t4465\t2116\t(15908)\t1908\nNet income\t21081\t4764\t24723\t23894\nDenominator (basic):\t\t\t\t\nBasic weighted average number of shares outstanding\t40230256\t44169964\t41856894\t43736458\nDenominator (diluted):\t\t\t\t\nBasic weighted average number of shares outstanding\t40230256\t44169964\t41856894\t43736458\nEffect of potentially dilutive securities:\t\t\t\t\nEmployee share plans (options RSUs and ESPP)\t532074\t573980\t767914\t583969\nDiluted weighted average number of shares outstanding\t40762330\t44743944\t42624808\t44320427\nBasic and diluted earnings per share:\t\t\t\t\nContinuing operations\t0.41\t0.06\t0.97\t0.50\nDiscontinued operations\t0.11\t0.05\t(0.38)\t0.05\nBasic earnings per share\t0.52\t0.11\t0.59\t0.55\nContinuing operations\t0.41\t0.06\t0.95\t0.50\nDiscontinued operations\t0.11\t0.05\t(0.37)\t0.04\nDiluted earnings per share\t0.52\t0.11\t0.58\t0.54\n", "q10k_tbl_12": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n(Dollars in thousands)\t2020\t2019\t2020\t2019\nFinance charges\t54348\t92464\t222078\t253932\nCSO fees\t2822\t8939\t14129\t32739\nLines of credit fees\t36758\t62174\t137603\t186223\nOther\t236\t719\t812\t1842\nTotal revenues\t94164\t164296\t374622\t474736\n", "q10k_tbl_13": "\tSeptember 30 2020\t\t\n(Dollars in thousands)\tRise\tElastic(1)\tTotal\nCurrent loans\t205650\t159341\t364991\nPast due loans\t18401\t7257\t25658\nTotal loans receivable\t224051\t166598\t390649\nNet unamortized loan premium\t104\t1098\t1202\nLess: Allowance for loan losses\t(32896)\t(17013)\t(49909)\nLoans receivable net\t191259\t150683\t341942\n", "q10k_tbl_14": "\tDecember 31 2019\t\t\n(Dollars in thousands)\tRise\tElastic(1)\tTotal\nCurrent loans\t307406\t243380\t550786\nPast due loans\t46386\t22395\t68781\nTotal loans receivable\t353792\t265775\t619567\nNet unamortized loan premium\t290\t2128\t2418\nLess: Allowance for loan losses\t(50019)\t(29893)\t(79912)\nLoans receivable net\t304063\t238010\t542073\n", "q10k_tbl_15": "\tThree Months Ended September 30 2020\t\t\n(Dollars in thousands)\tRise\tElastic(1)\tTotal\nBalance beginning of period\t40614\t19980\t60594\nProvision for loan losses\t9039\t4125\t13164\nCharge-offs\t(18059)\t(7859)\t(25918)\nRecoveries of prior charge-offs\t2723\t767\t3490\nTotal\t34317\t17013\t51330\nAccrual for CSO lender owned loans\t(1421)\t0\t(1421)\nBalance end of period\t32896\t17013\t49909\n", "q10k_tbl_16": "\tThree Months Ended September 30 2019\t\t\n(Dollars in thousands)\tRise\tElastic(1)\tTotal\nBalance beginning of period\t41393\t26479\t67872\nProvision for loan losses\t58290\t33412\t91702\nCharge-offs\t(54148)\t(30162)\t(84310)\nRecoveries of prior charge-offs\t4969\t2276\t7245\nTotal\t50504\t32005\t82509\nAccrual for CSO lender owned loans\t(1972)\t0\t(1972)\nBalance end of period\t48532\t32005\t80537\n", "q10k_tbl_17": "\tNine Months Ended September 30 2020\t\t\n(Dollars in thousands)\tRise\tElastic(1)\tTotal\nBalance beginning of period\t52099\t29893\t81992\nProvision for loan losses\t90615\t42601\t133216\nCharge-offs\t(120189)\t(60528)\t(180717)\nRecoveries of prior charge-offs\t11792\t5047\t16839\nTotal\t34317\t17013\t51330\nAccrual for CSO lender owned loans\t(1421)\t0\t(1421)\nBalance end of period\t32896\t17013\t49909\n", "q10k_tbl_18": "\tNine Months Ended September 30 2019\t\t\n(Dollars in thousands)\tRise\tElastic(1)\tTotal\nBalance beginning of period\t50597\t36050\t86647\nProvision for loan losses\t147097\t88242\t235339\nCharge-offs\t(162046)\t(100173)\t(262219)\nRecoveries of prior charge-offs\t14856\t7886\t22742\nTotal\t50504\t32005\t82509\nAccrual for CSO lender owned loans\t(1972)\t0\t(1972)\nBalance end of period\t48532\t32005\t80537\n", "q10k_tbl_19": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n(Dollars in thousands)\t2020\t2019\t2020\t2019\nOutstanding recorded investment before TDR\t467\t9041\t7619\t22537\nOutstanding recorded investment after TDR\t461\t8594\t7255\t20657\nTotal principal and interest forgiveness included in charge-offs within the Allowance for loan losses\t6\t447\t364\t1880\n", "q10k_tbl_20": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n(Dollars in thousands)\t2020\t2019\t2020\t2019\nAverage outstanding recorded investment(1)\t10382\t12743\t13330\t13839\nInterest income recognized\t1503\t2589\t7755\t7438\n1. Simple average as of September 30 2020 and 2019 respectively.\t\t\t\t\n", "q10k_tbl_21": "(Dollars in thousands)\t2020\t2019\nCurrent outstanding investment\t8209\t11313\nDelinquent outstanding investment\t1589\t5549\nOutstanding recorded investment\t9798\t16862\nLess: Impairment included in Allowance for loan losses\t(1518)\t(4414)\nOutstanding recorded investment net of impairment\t8280\t12448\n", "q10k_tbl_22": "(Dollars in thousands)\tSeptember 30 2020\tDecember 31 2019\nASSETS\t\t\nCash and cash equivalents\t107602\t26245\nLoans receivable net of allowance for loan losses of $15415 and $28852 respectively\t143102\t234504\nPrepaid expenses and other assets\t52\t0\nReceivable from payment processors\t3253\t6363\nTotal assets\t254009\t267112\nLIABILITIES AND SHAREHOLDER'S EQUITY\t\t\nAccounts payable and accrued liabilities ($26194 and $7690 respectively eliminates upon consolidation)\t30912\t15902\nDeferred revenue\t2251\t4280\nReserve deposit liability ($23150 and $23150 respectively eliminates upon consolidation)\t23150\t23150\nNotes payable net\t197696\t223780\nTotal liabilities and shareholder's equity\t254009\t267112\n", "q10k_tbl_23": "(Dollars in thousands)\tSeptember 30 2020\tDecember 31 2019\nASSETS\t\t\nCash and cash equivalents\t35279\t7541\nLoans receivable net of allowance for loan losses of $15491 and $17436 respectively\t78298\t111281\nReceivable from payment processors ($207 and $0 eliminates upon consolidation)\t647\t681\nTotal assets\t114224\t119503\nLIABILITIES AND SHAREHOLDER'S EQUITY\t\t\nAccounts payable and accrued liabilities ($10716 and $7114 respectively eliminates upon consolidation)\t11792\t8576\nReserve deposit liability ($8950 and $8950 respectively eliminates upon consolidation)\t8950\t8950\nNotes payable net\t93482\t101977\nTotal liabilities and shareholder's equity\t114224\t119503\n", "q10k_tbl_24": "(Dollars in thousands)\tSeptember 30 2020\nASSETS\t\nCash and cash equivalents\t956\nRestricted cash\t1000\nLoans receivable net of allowance for loan losses of $3\t56\nPrepaid expenses and other assets ($36 eliminates upon consolidation)\t36\nReceivable from payment processors\t3\nTotal assets\t2051\nLIABILITIES AND SHAREHOLDER'S EQUITY\t\nAccounts payable and accrued liabilities ($15 eliminates upon consolidation)\t51\nReserve deposit liability ($2000 eliminates upon consolidation)\t2000\nTotal liabilities and shareholder's equity\t2051\n", "q10k_tbl_25": "(Dollars in thousands)\tSeptember 30 2020\tDecember 31 2019\nUS Term Note bearing interest at the base rate + 7.25% (2020) or + 7.5% (2019)\t129500\t182000\n4th Tranche Term Note bearing interest at the base rate + 13%\t18050\t18050\nEF SPV Term Note bearing interest at the base rate + 7.25% (2020) or + 7.5% (2019)\t93500\t102000\nESPV Term Note bearing interest at the base rate + 7.25% (2020) or + 7.5% (2019)\t199500\t226000\nDebt issuance costs\t(2350)\t(2611)\nTotal\t438200\t525439\n", "q10k_tbl_26": "Year (dollars in thousands)\tSeptember 30 2020\nRemainder of 2020\t0\n2021\t18050\n2022\t0\n2023\t0\n2024\t422500\nThereafter\t0\nTotal\t440550\n", "q10k_tbl_27": "(Dollars in thousands)\tCost\tAccumulated Amortization\tNet\nAssets subject to amortization:\t\t\t\nAcquired technology\t211\t(211)\t0\nNon-compete\t2461\t(1829)\t632\nCustomers\t126\t(126)\t0\nAssets not subject to amortization:\t\t\t\nDomain names\t531\t0\t531\nTotal\t3329\t(2166)\t1163\n", "q10k_tbl_28": "(Dollars in thousands)\tCost\tAccumulated Amortization\tNet\nAssets subject to amortization:\t\t\t\nAcquired technology\t211\t(211)\t0\nNon-compete\t2461\t(1739)\t722\nCustomers\t126\t(126)\t0\nAssets not subject to amortization:\t\t\t\nDomain names\t531\t0\t531\nTotal\t3329\t(2076)\t1253\n", "q10k_tbl_29": "Year (dollars in thousands)\tAmount\n2021\t120\n2022\t120\n2023\t120\n2024\t120\n2025\t120\n", "q10k_tbl_30": "\tThree Months Ended September 30\t\nLease cost (dollars in thousands)\t2020\t2019\nOperating lease cost\t808\t808\nShort-term lease cost\t0\t5\nTotal lease cost\t808\t813\n", "q10k_tbl_31": "\tNine Months Ended September 30\t\nLease cost (dollars in thousands)\t2020\t2019\nOperating lease cost\t2423\t2331\nShort-term lease cost\t0\t22\nTotal lease cost\t2423\t2353\n", "q10k_tbl_32": "\tThree Months Ended September 30\t\nSupplemental cash flows information (dollars in thousands)\t2020\t2019\nCash paid for amounts included in the measurement of lease liabilities\t946\t840\nRight-of-use assets obtained in exchange for lease obligations\t0\t0\nWeighted average remaining lease term\t3.8 years\t4.7 years\nWeighted average discount rate\t10.23%\t10.23%\n", "q10k_tbl_33": "\tNine Months Ended September 30\t\nSupplemental cash flows information (dollars in thousands)\t2020\t2019\nCash paid for amounts included in the measurement of lease liabilities\t2801\t2218\nRight-of-use assets obtained in exchange for lease obligations\t0\t1110\nWeighted average remaining lease term\t3.8 years\t4.7 years\nWeighted average discount rate\t10.23%\t10.23%\n", "q10k_tbl_34": "Year (dollars in thousands)\tOperating Leases\n2020\t958\n2021\t3876\n2022\t3984\n2023\t3486\n2024\t1438\nThereafter\t1893\nTotal future minimum lease payments\t15635\nLess: Imputed interest\t(3042)\nOperating lease liabilities\t12593\n", "q10k_tbl_35": "Stock Options\tShares\tWeighted Average Exercise Price\tWeighted Average Remaining Contractual Life (in years)\nOutstanding at December 31 2019\t2269178\t4.58\t\nGranted\t55161\t3.39\t\nExercised\t(87500)\t2.13\t\nExpired\t(25000)\t2.13\t\nForfeited\t(145142)\t3.88\t\nOutstanding at September 30 2020\t2066697\t4.73\t3.10\nOptions exercisable at September 30 2020\t2066697\t4.73\t3.10\n", "q10k_tbl_36": "RSUs\tShares\tWeighted Average Grant-Date Fair Value\nUnvested at December 31 2019\t4161862\t6.10\nGranted\t1246948\t1.64\nVested\t(1477869)\t6.52\nForfeited\t(838783)\t5.73\nUnvested at September 30 2020\t3092158\t4.20\nExpected to vest at September 30 2020\t2405932\t4.32\n", "q10k_tbl_37": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\nGains recognized in Interest expense\t2020\t2019\t2020\t2019\nUS Term Note interest rate cap\t0\t0\t0\t159\nESPV Facility interest rate cap\t0\t0\t0\t144\n\t0\t0\t0\t303\n", "q10k_tbl_38": "\tNine Months Ended September 30 2020\t\tNine Months Ended September 30 2019\t\n(Dollars in thousands)\tUS Term Note\tESPV Facility\tUS Term Note\tESPV Facility\nBeginning unrealized gains in Accumulated other comprehensive income\t0\t0\t159\t144\nGross gains recognized in Accumulated other comprehensive income\t0\t0\t0\t0\nGains reclassified to income through Interest expense\t0\t0\t(159)\t(144)\nEnding unrealized gains in Accumulated other comprehensive income\t0\t0\t0\t0\n", "q10k_tbl_39": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n(Dollars in thousands)\t2020\t2019\t2020\t2019\nCurrent income tax expense (benefit):\t\t\t\t\nFederal\t0\t0\t0\t0\nState\t803\t44\t1133\t576\nTotal current income tax expense (benefit)\t803\t44\t1133\t576\nDeferred income tax expense:\t\t\t\t\nFederal\t6301\t1152\t12658\t7599\nState\t(2221)\t149\t1520\t1819\nTotal deferred income tax expense\t4080\t1301\t14178\t9418\nTotal income tax expense\t4883\t1345\t15311\t9994\n", "q10k_tbl_40": "(Dollars in thousands)\tNine Months Ended September 30 2020\nBeginning balance at December 31 2019\t0\nExpected loss accrual\t4263\nNet contingent loss related to a legal matter at March 31 2020\t4263\nExpected loss accrual\t1407\nNet contingent loss related to a legal matter at June 30 2020\t5670\nExpected loss accrual\t1007\nNet contingent loss related to a legal matter at September 30 2020\t6677\n", "q10k_tbl_41": "\t\tThree Months Ended September 30\t\t\t\tNine Months Ended September 30\t\t\n(Dollars in thousands)\t2020\t\t2019\t\t2020 (1)\t\t2019\nRevenues\t\t0\t\t28482\t\t24012\t\t85306\nCost of sales:\t\t\t\t\t\t\t\t\nProvision for loan losses\t\t0\t\t9345\t\t4785\t\t31164\nDirect marketing costs\t\t0\t\t2894\t\t1372\t\t11971\nOther cost of sales\t\t0\t\t5012\t\t10790\t\t13848\nTotal cost of sales\t\t0\t\t17251\t\t16947\t\t56983\nGross profit\t\t0\t\t11231\t\t7065\t\t28323\nOperating expenses:\t\t\t\t\t\t\t\t\nCompensation and benefits\t\t0\t\t3664\t\t4785\t\t10873\nProfessional services\t\t0\t\t1163\t\t2879\t\t3858\nSelling and marketing\t\t0\t\t677\t\t605\t\t2176\nOccupancy and equipment\t\t0\t\t1167\t\t2141\t\t3563\nDepreciation and amortization\t\t0\t\t337\t\t1427\t\t1116\nOther\t\t0\t\t207\t\t288\t\t602\nTotal operating expenses\t\t0\t\t7215\t\t12125\t\t22188\nOperating (loss) income\t\t0\t\t4016\t\t(5060)\t\t6135\nOther expense:\t\t\t\t\t\t\t\t\nNet interest expense\t\t0\t\t(1031)\t\t(896)\t\t(3261)\nForeign currency transaction loss\t\t0\t\t(870)\t\t(854)\t\t(967)\nImpairment loss\t\t0\t\t0\t\t(9251)\t\t0\nTotal other expense\t\t0\t\t(1901)\t\t(11001)\t\t(4228)\nGain (loss) from operations of discontinued operations\t\t0\t\t2115\t\t(16061)\t\t1907\nGain (loss) on disposal of discontinued operations\t\t529\t\t0\t\t(27983)\t\t0\nGain (loss) from discontinued operations before taxes\t\t529\t\t2115\t\t(44044)\t\t1907\nIncome tax benefit\t\t3936\t\t1\t\t28136\t\t1\nNet income (loss) from discontinued operations\t\t4465\t\t2116\t\t(15908)\t\t1908\n", "q10k_tbl_42": "(Dollars in thousands except share amounts)\tSeptember 30 2020\tDecember 31 2019\n\t(unaudited)\t\nASSETS\t\t\nCash and cash equivalents\t0\t17698\nRestricted cash\t0\t59\nLoans receivable net of allowance for loan losses of $0 and $7083 respectively\t0\t31604\nPrepaid expenses and other assets\t0\t4871\nReceivable from payment processors\t0\t1970\nDeferred tax assets net\t0\t1355\nProperty and equipment net\t0\t14045\nGoodwill net\t0\t9251\nIntangible assets net\t0\t149\nTotal assets classified as discontinued operations in the Condensed Consolidated Balance Sheets\t0\t81002\nLIABILITIES AND STOCKHOLDERS' EQUITY\t\t\nAccounts payable and accrued liabilities\t0\t6917\nNotes payable net\t0\t29624\nTotal liabilities classified as discontinued operations in the Condensed Consolidated Balance Sheets\t0\t36541\n", "q10k_tbl_43": "\tThree Months Ended September 30\t\n(Dollars in thousands)\t2020\t2019\nFees and travel expenses\t110\t129\nStock compensation (1)\t(189)\t703\nConsulting\t0\t75\nTotal board related expenses\t(79)\t907\n", "q10k_tbl_44": "\tNine Months Ended September 30\t\n(Dollars in thousands)\t2020\t2019\nFees and travel expenses\t365\t394\nStock compensation (1)\t1598\t1423\nConsulting\t150\t225\nTotal board related expenses\t2113\t2042\n", "q10k_tbl_45": "\tAs of and for the three months ended September 30\t\tAs of and for the nine months ended September 30\t\nRevenue metrics (dollars in thousands except as noted)\t2020\t2019\t2020\t2019\nRevenues\t94164\t164296\t374622\t474736\nPeriod-over-period change in revenue\t(43)%\t(3)%\t(21)%\t(3)%\nEnding combined loans receivable - principal(1)\t377177\t586121\t377177\t586121\nAverage combined loans receivable - principal(1)(2)\t389701\t576574\t479526\t554925\nTotal combined loans originated - principal\t132516\t299861\t442552\t807138\nAverage customer loan balance (in dollars)(3)\t1797\t1948\t1797\t1948\nNumber of new customer loans\t8489\t53356\t47054\t119562\nEnding number of combined loans outstanding\t209887\t300898\t209887\t300898\nCustomer acquisition costs (in dollars)\t305\t205\t295\t244\nEffective APR of combined loan portfolio\t96%\t113%\t104%\t114%\n", "q10k_tbl_46": "\tThree Months Ended September 30 2020\t\n\tRise\tElastic (1)\t\t\t\t\t\t\t\t\t\tTotal\t\t\nBeginning number of combined loans outstanding\t107125\t115119\t\t\t\t\t\t\t\t\t\t222244\t\t\nNew customer loans originated\t6794\t1695\t\t\t\t\t\t\t\t\t\t8489\t\t\nFormer customer loans originated\t14466\t72\t\t\t\t\t\t\t\t\t\t14538\t\t\nAttrition\t(28426)\t(6958)\t\t\t\t\t\t\t\t\t\t(35384)\t\t\nEnding number of combined loans outstanding\t99959\t109928\t\t\t\t\t\t\t\t\t\t209887\t\t\nCustomer acquisition cost\t317\t253\t\t\t\t\t\t\t\t\t\t305\t\t\nAverage customer loan balance\t2157\t1470\t\t\t\t\t\t\t\t\t\t1797\t\t\n", "q10k_tbl_47": "\tThree Months Ended September 30 2019\t\n\tRise\tElastic (1)\t\t\t\t\t\t\t\t\t\tTotal\t\t\nBeginning number of combined loans outstanding\t135771\t142561\t\t\t\t\t\t\t\t\t\t278332\t\t\nNew customer loans originated\t33108\t20248\t\t\t\t\t\t\t\t\t\t53356\t\t\nFormer customer loans originated\t19168\t21\t\t\t\t\t\t\t\t\t\t19189\t\t\nAttrition\t(39796)\t(10183)\t\t\t\t\t\t\t\t\t\t(49979)\t\t\nEnding number of combined loans outstanding\t148251\t152647\t\t\t\t\t\t\t\t\t\t300898\t\t\nCustomer acquisition cost\t215\t188\t\t\t\t\t\t\t\t\t\t205\t\t\nAverage customer loan balance\t2208\t1695\t\t\t\t\t\t\t\t\t\t1948\t\t\n", "q10k_tbl_48": "\tNine Months Ended September 30 2020\t\n\tRise\tElastic (1)\t\t\t\t\t\t\t\t\t\tTotal\t\t\nBeginning number of combined loans outstanding\t152435\t149524\t\t\t\t\t\t\t\t\t\t301959\t\t\nNew customer loans originated\t31834\t15220\t\t\t\t\t\t\t\t\t\t47054\t\t\nFormer customer loans originated\t38615\t212\t\t\t\t\t\t\t\t\t\t38827\t\t\nAttrition\t(122925)\t(55028)\t\t\t\t\t\t\t\t\t\t(177953)\t\t\nEnding number of combined loans outstanding\t99959\t109928\t\t\t\t\t\t\t\t\t\t209887\t\t\nCustomer acquisition cost\t311\t264\t\t\t\t\t\t\t\t\t\t295\t\t\n", "q10k_tbl_49": "\tNine Months Ended September 30 2019\t\n\tRise\tElastic (1)\t\t\t\t\t\t\t\t\t\tTotal\t\t\nBeginning number of combined loans outstanding\t142758\t166397\t\t\t\t\t\t\t\t\t\t309155\t\t\nNew customer loans originated\t80650\t38912\t\t\t\t\t\t\t\t\t\t119562\t\t\nFormer customer loans originated\t55809\t48\t\t\t\t\t\t\t\t\t\t55857\t\t\nAttrition\t(130966)\t(52710)\t\t\t\t\t\t\t\t\t\t(183676)\t\t\nEnding number of combined loans outstanding\t148251\t152647\t\t\t\t\t\t\t\t\t\t300898\t\t\nCustomer acquisition cost\t251\t230\t\t\t\t\t\t\t\t\t\t244\t\t\n", "q10k_tbl_50": "\tAs of and for the three months ended September 30\t\tAs of and for the nine months ended September 30\t\nCredit quality metrics (dollars in thousands)\t2020\t2019\t2020\t2019\nNet charge-offs(1)\t22428\t77065\t163878\t239477\nAdditional provision for loan losses(1)\t(9264)\t14637\t(30662)\t(4138)\nProvision for loan losses\t13164\t91702\t133216\t235339\nPast due combined loans receivable - principal as a percentage of combined loans receivable - principal(2)\t6%\t10%\t6%\t10%\nNet charge-offs as a percentage of revenues(1)\t24%\t47%\t44%\t50%\nTotal provision for loan losses as a percentage of revenues\t14%\t56%\t36%\t50%\nCombined loan loss reserve(3)\t51330\t82509\t51330\t82509\nCombined loan loss reserve as a percentage of combined loans receivable(3)(4)\t13%\t13%\t13%\t13%\n", "q10k_tbl_51": "Net principal charge-offs as a percentage of average combined loans receivable - principal (1) (2) (3)\tFirst Quarter\tSecond Quarter\tThird Quarter\tFourth Quarter\n2020\t11%\t9%\t3%\tN/A\n2019\t13%\t10%\t11%\t13%\n2018\t13%\t12%\t13%\t15%\n", "q10k_tbl_52": "Example (dollars in thousands)\t\t\nBeginning combined loan loss reserve\t\t25000\nLess: Net charge-offs\t\t(10000)\nProvision for loan losses:\t\t\nProvision for net charge-offs\t10000\t\nAdditional provision for loan losses\t5000\t\nTotal provision for loan losses\t\t15000\nEnding combined loan loss reserve balance\t\t30000\n", "q10k_tbl_53": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\nMargin metrics (dollars in thousands)\t2020\t2019\t2020\t2019\nRevenues\t94164\t164296\t374622\t474736\nNet charge-offs(1)\t(22428)\t(77065)\t(163878)\t(239477)\nAdditional provision for loan losses(1)\t9264\t(14637)\t30662\t4138\nDirect marketing costs\t(2585)\t(10927)\t(13898)\t(29198)\nOther cost of sales\t(1672)\t(2447)\t(5949)\t(7233)\nGross profit\t76743\t59220\t221559\t202966\nOperating expenses\t(42662)\t(40903)\t(121517)\t(121726)\nOperating income\t34081\t18317\t100042\t81240\nAs a percentage of revenues:\t\t\t\t\nNet charge-offs\t24%\t47%\t44%\t50%\nAdditional provision for loan losses\t(10)\t9\t(8)\t(1)\nDirect marketing costs\t3\t7\t4\t6\nOther cost of sales\t2\t1\t2\t2\nGross margin\t81\t36\t59\t43\nOperating expenses\t45\t25\t32\t26\nOperating margin\t36%\t11%\t27%\t17%\n", "q10k_tbl_54": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n(Dollars in thousands except per share amounts)\t2020\t2019\t2020\t2019\nNet income from continuing operations\t16616\t2648\t40631\t21986\nImpact of contingent loss related to a legal matter\t1007\t0\t6692\t0\nCumulative tax effect of adjustments\t(239)\t0\t(1590)\t0\nAdjusted earnings\t17384\t2648\t45733\t21986\nDiluted earnings per share\t0.41\t0.06\t0.95\t0.50\nImpact of contingent loss related to a legal matter\t0.02\t0\t0.16\t0\nCumulative tax effect of adjustments\t(0.01)\t0\t(0.04)\t0\nAdjusted diluted earnings per share\t0.42\t0.06\t1.07\t0.50\n", "q10k_tbl_55": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n(Dollars in thousands)\t2020\t2019\t2020\t2019\nNet income from continuing operations\t16616\t2648\t40631\t21986\nAdjustments:\t\t\t\t\nNet interest expense\t11575\t13629\t37408\t48565\nShare-based compensation\t1166\t2364\t6513\t7286\nDepreciation and amortization\t4588\t4013\t13413\t11824\nNon-operating loss\t1007\t695\t6692\t695\nIncome tax expense\t4883\t1345\t15311\t9994\nAdjusted EBITDA\t39835\t24694\t119968\t100350\nAdjusted EBITDA margin\t42%\t15%\t32%\t21%\n", "q10k_tbl_56": "\tNine Months Ended September 30\t\n(Dollars in thousands)\t2020\t2019\nNet cash provided by continuing operating activities(1)\t177705\t239843\nAdjustments:\t\t\nNet charge-offs - combined principal loans\t(125232)\t(187866)\nCapital expenditures\t(12867)\t(14881)\nFCF\t39606\t37096\n", "q10k_tbl_57": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n(Dollars in thousands)\t2020\t2019\t2020\t2019\nNet charge-offs\t22428\t77065\t163878\t239477\nAdditional provision for loan losses\t(9264)\t14637\t(30662)\t(4138)\nProvision for loan losses\t13164\t91702\t133216\t235339\n", "q10k_tbl_58": "\t2019\t\t2020\t\t\n(Dollars in thousands)\tSeptember 30\tDecember 31\tMarch 31\tJune 30\tSeptember 30\nCompany Owned Loans:\t\t\t\t\t\nLoans receivable - principal current company owned\t507551\t530463\t486396\t387939\t346380\nLoans receivable - principal past due company owned\t59240\t58489\t53923\t18917\t21354\nLoans receivable - principal total company owned\t566791\t588952\t540319\t406856\t367734\nLoans receivable - finance charges company owned\t31698\t33033\t31621\t25606\t24117\nLoans receivable - company owned\t598489\t621985\t571940\t432462\t391851\nAllowance for loan losses on loans receivable company owned\t(80537)\t(79912)\t(76188)\t(59438)\t(49909)\nLoans receivable net company owned\t517952\t542073\t495752\t373024\t341942\nThird Party Loans Guaranteed by the Company:\t\t\t\t\t\nLoans receivable - principal current guaranteed by company\t18633\t17474\t12606\t6755\t9129\nLoans receivable - principal past due guaranteed by company\t697\t723\t564\t117\t314\nLoans receivable - principal total guaranteed by company(1)\t19330\t18197\t13170\t6872\t9443\nLoans receivable - finance charges guaranteed by company(2)\t1553\t1395\t1150\t550\t679\nLoans receivable - guaranteed by company\t20883\t19592\t14320\t7422\t10122\nLiability for losses on loans receivable guaranteed by company\t(1972)\t(2080)\t(1571)\t(1156)\t(1421)\nLoans receivable net guaranteed by company(2)\t18911\t17512\t12749\t6266\t8701\nCombined Loans Receivable(3):\t\t\t\t\t\nCombined loans receivable - principal current\t526184\t547937\t499002\t394694\t355509\nCombined loans receivable - principal past due\t59937\t59212\t54487\t19034\t21668\nCombined loans receivable - principal\t586121\t607149\t553489\t413728\t377177\nCombined loans receivable - finance charges\t33251\t34428\t32771\t26156\t24796\nCombined loans receivable\t619372\t641577\t586260\t439884\t401973\nCombined Loan Loss Reserve(3):\t\t\t\t\t\nAllowance for loan losses on loans receivable company owned\t(80537)\t(79912)\t(76188)\t(59438)\t(49909)\nLiability for losses on loans receivable guaranteed by company\t(1972)\t(2080)\t(1571)\t(1156)\t(1421)\nCombined loan loss reserve\t(82509)\t(81992)\t(77759)\t(60594)\t(51330)\nCombined loans receivable - principal past due(3)\t59937\t59212\t54487\t19034\t21668\nCombined loans receivable - principal(3)\t586121\t607149\t553489\t413728\t377177\nPercentage past due(1)\t10%\t10%\t10%\t5%\t6%\nCombined loan loss reserve as a percentage of combined loans receivable(3)(4)\t13%\t13%\t13%\t14%\t13%\nAllowance for loan losses as a percentage of loans receivable - company owned\t13%\t13%\t13%\t14%\t13%\n", "q10k_tbl_59": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\nCondensed consolidated income statements data (dollars in thousands)\t2020\t2019\t2020\t2019\nRevenues\t94164\t164296\t374622\t474736\nCost of sales:\t\t\t\t\nProvision for loan losses\t13164\t91702\t133216\t235339\nDirect marketing costs\t2585\t10927\t13898\t29198\nOther cost of sales\t1672\t2447\t5949\t7233\nTotal cost of sales\t17421\t105076\t153063\t271770\nGross profit\t76743\t59220\t221559\t202966\nOperating expenses:\t\t\t\t\nCompensation and benefits\t23921\t23289\t64239\t67428\nProfessional services\t8236\t7552\t24633\t23416\nSelling and marketing\t610\t1117\t2468\t3669\nOccupancy and equipment\t4717\t3887\t14196\t11722\nDepreciation and amortization\t4588\t4013\t13413\t11824\nOther\t590\t1045\t2568\t3667\nTotal operating expenses\t42662\t40903\t121517\t121726\nOperating income\t34081\t18317\t100042\t81240\nOther expense:\t\t\t\t\nNet interest expense\t(11575)\t(13629)\t(37408)\t(48565)\nNon-operating loss\t(1007)\t(695)\t(6692)\t(695)\nTotal other expense\t(12582)\t(14324)\t(44100)\t(49260)\nIncome from continuing operations before taxes\t21499\t3993\t55942\t31980\nIncome tax expense\t4883\t1345\t15311\t9994\nNet income from continuing operations\t16616\t2648\t40631\t21986\nNet income (loss) from discontinued operations\t4465\t2116\t(15908)\t1908\nNet income\t21081\t4764\t24723\t23894\n", "q10k_tbl_60": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\nAs a percentage of revenues\t2020\t2019\t2020\t2019\nCost of sales:\t\t\t\t\nProvision for loan losses\t14%\t56%\t36%\t50%\nDirect marketing costs\t3\t7\t4\t6\nOther cost of sales\t2\t1\t2\t2\nTotal cost of sales\t19\t64\t41\t57\nGross profit\t81\t36\t59\t43\nOperating expenses:\t\t\t\t\nCompensation and benefits\t25\t14\t17\t14\nProfessional services\t9\t5\t7\t5\nSelling and marketing\t1\t1\t1\t1\nOccupancy and equipment\t5\t2\t4\t2\nDepreciation and amortization\t5\t2\t4\t2\nOther\t1\t1\t1\t1\nTotal operating expenses\t45\t25\t32\t26\nOperating income\t36\t11\t27\t17\nOther expense:\t\t\t\t\nNet interest expense\t(12)\t(8)\t(10)\t(10)\nNon-operating loss\t(1)\t0\t(2)\t0\nTotal other expense\t(13)\t(9)\t(12)\t(10)\nIncome from continuing operations before taxes\t23\t2\t15\t7\nIncome tax expense\t5\t1\t4\t3\nNet income from continuing operations\t18\t2\t11\t5\nNet income (loss) from discontinued operations\t5\t1\t(4)\t0\nNet income\t22%\t3%\t7%\t5%\n", "q10k_tbl_61": "\tThree Months Ended September 30\t\t\t\t\t\n\t2020\t\t2019\t\tPeriod-to-period change\t\n(Dollars in thousands)\tAmount\tPercentage of revenues\tAmount\tPercentage of revenues\tAmount\tPercentage\nFinance charges\t93928\t100%\t163577\t100%\t(69649)\t(43)%\nOther\t236\t0\t719\t0\t(483)\t(67)\nRevenues\t94164\t100%\t164296\t100%\t(70132)\t(43)%\n", "q10k_tbl_62": "\tThree Months Ended September 30 2020\t\n(Dollars in thousands)\tRise (1)\tElastic (2)\t\t\t\t\t\t\t\t\t\tTotal\t\t\nAverage combined loans receivable - principal(3)\t225041\t164660\t\t\t\t\t\t\t\t\t\t389701\t\t\nEffective APR\t101%\t89%\t\t\t\t\t\t\t\t\t\t96%\t\t\nFinance charges\t57169\t36759\t\t\t\t\t\t\t\t\t\t93928\t\t\nOther\t6\t230\t\t\t\t\t\t\t\t\t\t236\t\t\nTotal revenue\t57175\t36989\t\t\t\t\t\t\t\t\t\t94164\t\t\n\tThree Months Ended September 30 2019\t\n(Dollars in thousands)\tRise (1)\tElastic (2)\t\t\t\t\t\t\t\t\t\tTotal\t\t\nAverage combined loans receivable - principal(3)\t320104\t256470\t\t\t\t\t\t\t\t\t\t576574\t\t\nEffective APR\t126%\t96%\t\t\t\t\t\t\t\t\t\t113%\t\t\nFinance charges\t101403\t62174\t\t\t\t\t\t\t\t\t\t163577\t\t\nOther\t294\t425\t\t\t\t\t\t\t\t\t\t719\t\t\nTotal revenue\t101697\t62599\t\t\t\t\t\t\t\t\t\t164296\t\t\n", "q10k_tbl_63": "\tThree Months Ended September 30\t\t\t\tPeriod-to-period change\t\n\t2020\t\t2019\t\n(Dollars in thousands)\tAmount\tPercentage of revenues\tAmount\tPercentage of revenues\tAmount\tPercentage\nCost of sales:\t\t\t\t\t\t\nProvision for loan losses\t13164\t14%\t91702\t56%\t(78538)\t(86)%\nDirect marketing costs\t2585\t3\t10927\t7\t(8342)\t(76)\nOther cost of sales\t1672\t2\t2447\t1\t(775)\t(32)\nTotal cost of sales\t17421\t19%\t105076\t64%\t(87655)\t(83)%\n", "q10k_tbl_64": "\tThree Months Ended September 30 2020\t\n(Dollars in thousands)\tRise\tElastic (1)\t\t\t\t\t\t\t\t\t\tTotal\t\t\nCombined loan loss reserve(2):\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nBeginning balance\t40614\t19980\t\t\t\t\t\t\t\t\t\t60594\t\t\nNet charge-offs\t(15336)\t(7092)\t\t\t\t\t\t\t\t\t\t(22428)\t\t\nProvision for loan losses\t9039\t4125\t\t\t\t\t\t\t\t\t\t13164\t\t\nEnding balance\t34317\t17013\t\t\t\t\t\t\t\t\t\t51330\t\t\nCombined loans receivable(2)(3)\t234277\t167696\t\t\t\t\t\t\t\t\t\t401973\t\t\nCombined loan loss reserve as a percentage of ending combined loans receivable\t15%\t10%\t\t\t\t\t\t\t\t\t\t13%\t\t\nNet charge-offs as a percentage of revenues\t27%\t19%\t\t\t\t\t\t\t\t\t\t24%\t\t\nProvision for loan losses as a percentage of revenues\t16%\t11%\t\t\t\t\t\t\t\t\t\t14%\t\t\n", "q10k_tbl_65": "\tThree Months Ended September 30 2019\t\n(Dollars in thousands)\tRise\tElastic (1)\t\t\t\t\t\t\t\t\t\tTotal\t\t\nCombined loan loss reserve(2):\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nBeginning balance\t41393\t26479\t\t\t\t\t\t\t\t\t\t67872\t\t\nNet charge-offs\t(49179)\t(27886)\t\t\t\t\t\t\t\t\t\t(77065)\t\t\nProvision for loan losses\t58290\t33412\t\t\t\t\t\t\t\t\t\t91702\t\t\nEnding balance\t50504\t32005\t\t\t\t\t\t\t\t\t\t82509\t\t\nCombined loans receivable(2)(3)\t349264\t270108\t\t\t\t\t\t\t\t\t\t619372\t\t\nCombined loan loss reserve as a percentage of ending combined loans receivable\t14%\t12%\t\t\t\t\t\t\t\t\t\t13%\t\t\nNet charge-offs as a percentage of revenues\t48%\t45%\t\t\t\t\t\t\t\t\t\t47%\t\t\nProvision for loan losses as a percentage of revenues\t57%\t53%\t\t\t\t\t\t\t\t\t\t56%\t\t\n", "q10k_tbl_66": "\tThree Months Ended September 30\t\t\t\tPeriod-to-period change\t\n\t2020\t\t2019\t\n(Dollars in thousands)\tAmount\tPercentage of revenues\tAmount\tPercentage of revenues\tAmount\tPercentage\nOperating expenses:\t\t\t\t\t\t\nCompensation and benefits\t23921\t25%\t23289\t14%\t632\t3%\nProfessional services\t8236\t9\t7552\t5\t684\t9\nSelling and marketing\t610\t1\t1117\t1\t(507)\t(45)\nOccupancy and equipment\t4717\t5\t3887\t2\t830\t21\nDepreciation and amortization\t4588\t5\t4013\t2\t575\t14\nOther\t590\t1\t1045\t1\t(455)\t(44)\nTotal operating expenses\t42662\t45%\t40903\t25%\t1759\t4%\n", "q10k_tbl_67": "\tThree Months Ended September 30\t\t\t\tPeriod-to-period change\t\n\t2020\t\t2019\t\n(Dollars in thousands)\tAmount\tPercentage of revenues\tAmount\tPercentage of revenues\tAmount\tPercentage\nNet interest expense\t11575\t12%\t13629\t8%\t(2054)\t(15)%\n", "q10k_tbl_68": "\tThree Months Ended September 30\t\n(Dollars in thousands)\t2020\t2019\nVPC Facility\t\t\nAverage facility balance during the period\t147550\t200050\nNet interest expense\t4034\t5550\nEffective cost of funds\t10.9%\t11.0%\nEF SPV Facility\t\t\nAverage facility balance during the period\t93500\t81717\nNet interest expense\t2319\t2113\nEffective cost of funds\t9.9%\t10.3%\nESPV Facility\t\t\nAverage facility balance during the period\t199500\t222957\nNet interest expense\t5222\t5966\nEffective cost of funds\t10.4%\t10.6%\n", "q10k_tbl_69": "\tThree Months Ended September 30\t\t\t\tPeriod-to-period change\t\n\t2020\t\t2019\t\n(Dollars in thousands)\tAmount\tPercentage of revenues\tAmount\tPercentage of revenues\tAmount\tPercentage\nIncome tax expense\t4883\t5%\t1345\t1%\t3538\t263%\n", "q10k_tbl_70": "\tThree Months Ended September 30\t\t\t\tPeriod-to-period change\t\n\t2020\t\t2019\t\n(Dollars in thousands)\tAmount\tPercentage of revenues\tAmount\tPercentage of revenues\tAmount\tPercentage\nNet income\t21081\t22%\t4764\t3%\t16317\t343%\n", "q10k_tbl_71": "\tNine Months Ended September 30\t\t\t\t\t\n\t2020\t\t2019\t\tPeriod-to-period change\t\n(Dollars in thousands)\tAmount\tPercentage of revenues\tAmount\tPercentage of revenues\tAmount\tPercentage\nFinance charges\t373810\t100%\t472894\t100%\t(99084)\t(21)%\nOther\t812\t0\t1842\t0\t(1030)\t(56)\nRevenues\t374622\t100%\t474736\t100%\t(100114)\t(21)%\n", "q10k_tbl_72": "\tNine Months Ended September 30 2020\t\n(Dollars in thousands)\tRise (1)\tElastic (2)\t\t\t\t\t\t\t\t\t\tTotal\t\t\nAverage combined loans receivable - principal(3)\t279202\t200324\t\t\t\t\t\t\t\t\t\t479526\t\t\nEffective APR\t113%\t92%\t\t\t\t\t\t\t\t\t\t104%\t\t\nFinance charges\t236207\t137603\t\t\t\t\t\t\t\t\t\t373810\t\t\nOther\t114\t698\t\t\t\t\t\t\t\t\t\t812\t\t\nTotal revenue\t236321\t138301\t\t\t\t\t\t\t\t\t\t374622\t\t\n\tNine Months Ended September 30 2019\t\n(Dollars in thousands)\tRise (1)\tElastic (2)\t\t\t\t\t\t\t\t\t\tTotal\t\t\nAverage combined loans receivable - principal(3)\t299443\t255482\t\t\t\t\t\t\t\t\t\t554925\t\t\nEffective APR\t128%\t97%\t\t\t\t\t\t\t\t\t\t114%\t\t\nFinance charges\t286670\t186224\t\t\t\t\t\t\t\t\t\t472894\t\t\nOther\t1034\t808\t\t\t\t\t\t\t\t\t\t1842\t\t\nTotal revenue\t287704\t187032\t\t\t\t\t\t\t\t\t\t474736\t\t\n", "q10k_tbl_73": "\tNine Months Ended September 30\t\t\t\tPeriod-to-period change\t\n\t2020\t\t2019\t\n(Dollars in thousands)\tAmount\tPercentage of revenues\tAmount\tPercentage of revenues\tAmount\tPercentage\nCost of sales:\t\t\t\t\t\t\nProvision for loan losses\t133216\t36%\t235339\t50%\t(102123)\t(43)%\nDirect marketing costs\t13898\t4\t29198\t6\t(15300)\t(52)\nOther cost of sales\t5949\t2\t7233\t2\t(1284)\t(18)\nTotal cost of sales\t153063\t41%\t271770\t57%\t(118707)\t(44)%\n", "q10k_tbl_74": "\tNine Months Ended September 30 2020\t\n(Dollars in thousands)\tRise\tElastic (1)\t\t\t\t\t\t\t\t\t\tTotal\t\t\nCombined loan loss reserve(2):\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nBeginning balance\t52099\t29893\t\t\t\t\t\t\t\t\t\t81992\t\t\nNet charge-offs\t(108397)\t(55481)\t\t\t\t\t\t\t\t\t\t(163878)\t\t\nProvision for loan losses\t90615\t42601\t\t\t\t\t\t\t\t\t\t133216\t\t\nEnding balance\t34317\t17013\t\t\t\t\t\t\t\t\t\t51330\t\t\nCombined loans receivable(2)(3)\t234277\t167696\t\t\t\t\t\t\t\t\t\t401973\t\t\nCombined loan loss reserve as a percentage of ending combined loans receivable\t15%\t10%\t\t\t\t\t\t\t\t\t\t13%\t\t\nNet charge-offs as a percentage of revenues\t46%\t40%\t\t\t\t\t\t\t\t\t\t44%\t\t\nProvision for loan losses as a percentage of revenues\t38%\t31%\t\t\t\t\t\t\t\t\t\t36%\t\t\n", "q10k_tbl_75": "\tNine Months Ended September 30 2019\t\n(Dollars in thousands)\tRise\tElastic (1)\t\t\t\t\t\t\t\t\t\tTotal\t\t\nCombined loan loss reserve(2):\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nBeginning balance\t50597\t36050\t\t\t\t\t\t\t\t\t\t86647\t\t\nNet charge-offs\t(147190)\t(92287)\t\t\t\t\t\t\t\t\t\t(239477)\t\t\nProvision for loan losses\t147097\t88242\t\t\t\t\t\t\t\t\t\t235339\t\t\nEnding balance\t50504\t32005\t\t\t\t\t\t\t\t\t\t82509\t\t\nCombined loans receivable(2)(3)\t349264\t270108\t\t\t\t\t\t\t\t\t\t619372\t\t\nCombined loan loss reserve as a percentage of ending combined loans receivable\t14%\t12%\t\t\t\t\t\t\t\t\t\t13%\t\t\nNet charge-offs as a percentage of revenues\t51%\t49%\t\t\t\t\t\t\t\t\t\t50%\t\t\nProvision for loan losses as a percentage of revenues\t51%\t47%\t\t\t\t\t\t\t\t\t\t50%\t\t\n", "q10k_tbl_76": "\tNine Months Ended September 30\t\t\t\tPeriod-to-period change\t\n\t2020\t\t2019\t\n(Dollars in thousands)\tAmount\tPercentage of revenues\tAmount\tPercentage of revenues\tAmount\tPercentage\nOperating expenses:\t\t\t\t\t\t\nCompensation and benefits\t64239\t17%\t67428\t14%\t(3189)\t(5)%\nProfessional services\t24633\t7\t23416\t5\t1217\t5\nSelling and marketing\t2468\t1\t3669\t1\t(1201)\t(33)\nOccupancy and equipment\t14196\t4\t11722\t2\t2474\t21\nDepreciation and amortization\t13413\t4\t11824\t2\t1589\t13\nOther\t2568\t1\t3667\t1\t(1099)\t(30)\nTotal operating expenses\t121517\t32%\t121726\t26%\t(209)\t-%\n", "q10k_tbl_77": "\tNine Months Ended September 30\t\t\t\tPeriod-to-period change\t\n\t2020\t\t2019\t\n(Dollars in thousands)\tAmount\tPercentage of revenues\tAmount\tPercentage of revenues\tAmount\tPercentage\nNet interest expense\t37408\t10%\t48565\t10%\t(11157)\t(23)%\n", "q10k_tbl_78": "\tNine Months Ended September 30\t\n(Dollars in thousands)\t2020\t2019\nVPC Facility\t\t\nAverage facility balance during the period\t167043\t219200\nNet interest expense\t13522\t19718\nLess: prepayment penalty associated with the early repayment on the 4th Tranche Term Note\t0\t(850)\nNet interest expense as adjusted\t13522\t18868\nEffective cost of funds\t10.8%\t12.0%\nEffective cost of funds as adjusted\t10.8%\t11.5%\nEF SPV Facility\t\t\nAverage facility balance during the period\t100863\t62436\nNet interest expense\t7619\t4926\nEffective cost of funds\t10.1%\t10.6%\nESPV Facility\t\t\nAverage facility balance during the period\t208894\t227395\nNet interest expense\t16267\t23920\nEffective cost of funds\t10.4%\t14.1%\n", "q10k_tbl_79": "\tNine Months Ended September 30\t\t\t\tPeriod-to-period change\t\n\t2020\t\t2019\t\n(Dollars in thousands)\tAmount\tPercentage of revenues\tAmount\tPercentage of revenues\tAmount\tPercentage\nIncome tax expense\t15311\t4%\t9994\t3%\t5317\t53%\n", "q10k_tbl_80": "\tNine Months Ended September 30\t\t\t\tPeriod-to-period change\t\n\t2020\t\t2019\t\n(Dollars in thousands)\tAmount\tPercentage of revenues\tAmount\tPercentage of revenues\tAmount\tPercentage\nNet income\t24723\t7%\t23894\t5%\t829\t3%\n", "q10k_tbl_81": "(Dollars in thousands)\tSeptember 30 2020\tDecember 31 2019\nUS Term Note bearing interest at the base rate + 7.25% (2020) or + 7.5% (2019)\t129500\t182000\n4th Tranche Term Note bearing interest at the base rate + 13%\t18050\t18050\nEF SPV Term Note bearing interest at the base rate + 7.25% (2020) or + 7.5% (2019)\t93500\t102000\nESPV Term Note bearing interest at the base rate + 7.25% (2020) or + 7.5% (2019)\t199500\t226000\nTotal\t440550\t528050\n", "q10k_tbl_82": "Year (dollars in thousands)\tSeptember 30 2020\nRemainder of 2020\t0\n2021\t18050\n2022\t0\n2023\t0\n2024\t422500\nThereafter\t0\nTotal\t440550\n", "q10k_tbl_83": "\tAs of and for the nine months ended September 30\t\n(Dollars in thousands)\t\t2020\t\t\t\t2019\t\t\nCash and cash equivalents\t\t224259\t\t\t\t61641\t\t\nRestricted cash\t\t3135\t\t\t\t2235\t\t\nLoans receivable net\t\t341942\t\t\t\t517952\t\t\nCash provided by (used in):\t\t\t\t\t\t\t\t\nOperating activities - continuing operations\t\t177705\t\t\t\t239843\t\t\nInvesting activities - continuing operations\t\t79154\t\t\t\t(211244)\t\t\nFinancing activities - continuing operations\t\t(102915)\t\t\t\t(15607)\t\t\n", "q10k_tbl_84": "\tNine Months Ended September 30\t\n(Dollars in thousands)\t\t2020\t\t\t\t2019\t\t\nCash provided by (used in) investing activities - continuing operations\t\t\t\t\t\t\t\t\nNet loans issued to consumers less repayments\t\t94844\t\t\t\t(191833)\t\t\nParticipation premium paid\t\t(2823)\t\t\t\t(4530)\t\t\nPurchases of property and equipment\t\t(12867)\t\t\t\t(14881)\t\t\n\t\t79154\t\t\t\t(211244)\t\t\n", "q10k_tbl_85": "\tNine Months Ended September 30\t\n(Dollars in thousands)\t\t2020\t\t\t\t2019\t\t\nCash used in financing activities - continuing operations\t\t\t\t\t\t\t\t\nProceeds from issuance of Notes payable net\t\t6500\t\t\t\t49000\t\t\nPayments on Notes payable\t\t(94000)\t\t\t\t(60000)\t\t\nDebt issuance costs paid\t\t(253)\t\t\t\t(2593)\t\t\nDebt prepayment costs paid\t\t0\t\t\t\t(850)\t\t\nPurchases of treasury stock\t\t(14739)\t\t\t\t(434)\t\t\nProceeds from issuance of stock net\t\t381\t\t\t\t619\t\t\nTaxes paid related to net share settlement\t\t(804)\t\t\t\t(1349)\t\t\n\t\t(102915)\t\t\t\t(15607)\t\t\n", "q10k_tbl_86": "\tNine Months Ended September 30\t\n(Dollars in thousands)\t\t2020\t\t\t\t2019\t\t\nNet cash provided by continuing operating activities\t\t177705\t\t\t\t239843\t\t\nAdjustments:\t\t\t\t\t\t\t\t\nNet charge-offs - combined principal loans\t\t(125232)\t\t\t\t(187866)\t\t\nCapital expenditures\t\t(12867)\t\t\t\t(14881)\t\t\nFCF\t\t39606\t\t\t\t37096\t\t\n", "q10k_tbl_87": "Period\tTotal number of shares purchased\tAverage price paid per share (1)\tTotal number of shares purchased as part of the publicly announced program\tApproximate dollar value of shares that may yet be purchased under the program (1)\nJuly 1 2020 to July 31 2020\t1282573\t1.71\t1282573\t16426859\nAugust 1 2020 to August 31 2020\t891072\t2.59\t891072\t14116883\nSeptember 1 2020 to September 30 2020\t949035\t2.32\t949035\t11916911\nTotal\t3122680\t2.15\t3122680\t\n", "q10k_tbl_88": "Exhibit number\tDescription\n10.1+#\tFourth Amendment to Employment Confidentiality and Non-Compete Agreement dated August 4 2020 by and between Scott Greever and Elevate Credit Service LLC (1)\n10.2∞\tFirst Amendment to Fifth Amended and Restated Financing Agreement dated July 31 2020 by and among Rise SPV LLC Today Card LLC Elevate Credit International Ltd. and Elevate Credit Service LLC as borrowers the guarantors party thereto the lenders party thereto and Victory Park Management LLC as administrative agent and collateral agent.\n10.3\tFinancing Agreement dated July 31 2020 by and among EC SPV LTD. as the borrower the guarantors party thereto the lenders party thereto and Victory Park Management LLC as agent\n10.4\tSecond Amendment to Financing Agreement dated July 31 2020 by and among EF SPV Ltd. as borrower the guarantors party thereto the lenders party thereto and Victory Park Management LLC as administrative agent and collateral agent.\n10.5\tFirst Amendment to Financing Agreement dated July 31 2020 by and among Elastic SPV Ltd. as borrower the guarantors party thereto the lenders party thereto and Victory Park Management LLC as administrative agent and collateral agent.\n31.1\tCertification pursuant to Rule 13a-14a and Rule 15d-14(a) of the Securities and Exchange Act as amended\n31.2\tCertification pursuant to Rule 13a-14a and Rule 15d-14(a) of the Securities and Exchange Act as amended\n32.1&\tCertification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002\n32.2&\tCertification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002\n101.INS\tXBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.\n101.SCH\tInline XBRL Taxonomy Extension Schema Document.\n101.CAL\tInline XBRL Taxonomy Extension Calculation Linkbase Document.\n101.DEF\tInline XBRL Taxonomy Extension Definition Linkbase Document.\n101.LAB\tInline XBRL Taxonomy Extension Labels Linkbase Document.\n101.PRE\tInline XBRL Taxonomy Extension Presentation Linkbase Document.\n104\tXBRL for cover page of the Company's Quarterly Report on Form 10-Q included in the Exhibit 101 Inline XBRL Document Set.\n"}{"bs": "q10k_tbl_3", "is": "q10k_tbl_4", "cf": "q10k_tbl_7"}None
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 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
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
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 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 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.
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 13(a) of the Exchange Act. ☒
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐No ☒
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:
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 and continuation 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 cash and 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)
September 30, 2020
December 31, 2019
(unaudited)
ASSETS
Cash and cash equivalents*
$
224,259
$
71,215
Restricted cash
3,135
2,235
Loans receivable, net of allowance for loan losses of $49,909 and $79,912, respectively*
341,942
542,073
Prepaid expenses and other assets*
9,576
6,737
Operating lease right of use assets
8,811
10,191
Receivable from CSO lenders
5,260
8,696
Receivable from payment processors*
5,210
8,681
Deferred tax assets, net
22,742
8,784
Property and equipment, net
35,488
35,944
Goodwill, net
6,776
6,776
Intangible assets, net
1,163
1,253
Assets from discontinued operations (see Note 13)
—
81,002
Total assets
$
664,362
$
783,587
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued liabilities (See Note 14)*
$
35,457
$
38,679
Operating lease liabilities
12,593
14,352
Income taxes payable
691
—
Deferred revenue*
5,911
12,087
Notes payable, net (See Note 14)*
438,200
525,439
Liabilities from discontinued operations (see Note 13)
—
36,541
Total liabilities
492,852
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 September 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; 39,082,894 and 43,676,826 outstanding, respectively
18
18
Additional paid-in capital
199,194
193,061
Treasury stock; at cost; 5,877,544 and 768,910 shares of common stock, respectively
(13,775)
(3,344)
Accumulated deficit
(13,927)
(34,342)
Accumulated other comprehensive income, net of tax benefit of $0 and $1,353, respectively
—
1,096
Total stockholders’ equity
171,510
156,489
Total liabilities and stockholders’ equity
$
664,362
$
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 the Company's 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 September 30,
Nine Months Ended September 30,
(Dollars in thousands, except share and per share amounts)
2020
2019
2020
2019
Revenues
$
94,164
$
164,296
$
374,622
$
474,736
Cost of sales:
Provision for loan losses
13,164
91,702
133,216
235,339
Direct marketing costs
2,585
10,927
13,898
29,198
Other cost of sales
1,672
2,447
5,949
7,233
Total cost of sales
17,421
105,076
153,063
271,770
Gross profit
76,743
59,220
221,559
202,966
Operating expenses:
Compensation and benefits
23,921
23,289
64,239
67,428
Professional services
8,236
7,552
24,633
23,416
Selling and marketing
610
1,117
2,468
3,669
Occupancy and equipment
4,717
3,887
14,196
11,722
Depreciation and amortization
4,588
4,013
13,413
11,824
Other
590
1,045
2,568
3,667
Total operating expenses
42,662
40,903
121,517
121,726
Operating income
34,081
18,317
100,042
81,240
Other expense:
Net interest expense (See Note 14)
(11,575)
(13,629)
(37,408)
(48,565)
Non-operating loss
(1,007)
(695)
(6,692)
(695)
Total other expense
(12,582)
(14,324)
(44,100)
(49,260)
Income from continuing operations before taxes
21,499
3,993
55,942
31,980
Income tax expense
4,883
1,345
15,311
9,994
Net income from continuing operations
16,616
2,648
40,631
21,986
Net income (loss) from discontinued operations
4,465
2,116
(15,908)
1,908
Net income
$
21,081
$
4,764
$
24,723
$
23,894
Basic income per share
Continuing operations
$
0.41
$
0.06
$
0.97
$
0.50
Discontinued operations
0.11
0.05
(0.38)
0.05
Basic earnings per share
$
0.52
$
0.11
$
0.59
$
0.55
Diluted income per share
Continuing operations
$
0.41
$
0.06
$
0.95
$
0.50
Discontinued operations
0.11
0.05
(0.37)
0.04
Diluted earnings per share
$
0.52
$
0.11
$
0.58
$
0.54
Basic weighted average shares outstanding
40,230,256
44,169,964
41,856,894
43,736,458
Diluted weighted average shares outstanding
40,762,330
44,743,944
42,624,808
44,320,427
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 September 30,
Nine Months Ended September 30,
2020
2019
2020
2019
Net income
$
21,081
$
4,764
$
24,723
$
23,894
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 nine months ended 2020 and 2019, respectively
—
(821)
(2,061)
(880)
Reclassification to Net loss from discontinued operations, net of tax of $0 and $1,369 for the three and nine months ended 2020, respectively, and $0 for the three and nine months ended 2019, respectively
—
—
965
—
Change in derivative valuation, net of tax of $0 for the three and nine months ended September 30, 2020, and $0 and $(95) for the three and nine months ended September 30, 2019, respectively
—
—
—
(208)
Total other comprehensive (loss) income, net of tax
—
(821)
(1,096)
(1,088)
Total comprehensive income
$
21,081
$
3,943
$
23,627
$
22,806
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 September 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
—
—
—
—
7,286
—
—
—
—
7,286
Share-based compensation -UK
—
—
—
—
(14)
—
—
—
—
(14)
Exercise of stock options, net
—
—
37,500
—
121
—
—
—
—
121
Vesting of restricted stock units, net
—
—
733,447
—
(1,350)
—
—
—
—
(1,350)
ESPP shares issued
—
—
142,267
—
498
—
—
—
—
498
Tax benefit of equity issuance costs
—
—
—
—
(2)
—
—
—
—
(2)
Comprehensive loss:
Foreign currency translation adjustment net of tax of $(1)
—
—
—
—
—
—
—
—
(880)
(880)
Change in derivative valuation net of tax of $(95)
—
—
—
—
—
—
—
—
(208)
(208)
Treasury stock acquired
—
—
(91,370)
—
—
91,370
(434)
—
—
(434)
Net income from continuing operations
—
—
—
—
—
—
—
21,986
—
21,986
Net income from discontinued operations
—
—
—
—
—
—
—
1,908
—
1,908
Balances at September 30, 2019
—
—
44,151,106
$
18
$
189,783
91,370
$
(434)
$
(42,631)
$
(1,034)
$
145,702
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
—
—
—
—
6,513
—
—
—
—
6,513
Share-based compensation -UK
—
—
—
—
45
—
—
—
—
45
Exercise of stock options, net
—
—
34,185
—
(51)
—
—
—
—
(51)
Vesting of restricted stock units, net
—
—
199,933
—
(727)
—
—
—
—
(727)
ESPP shares issued
—
—
280,584
—
353
—
—
—
—
353
Comprehensive loss:
Foreign currency translation adjustment net of tax of $(14)
—
—
—
—
—
—
—
—
(2,061)
(2,061)
Reclassification to Net income (loss) from discontinued operations net of tax of $1,369
—
—
—
—
—
—
—
—
965
965
Treasury stock reissued for RSUs vesting
—
—
983,625
—
—
(983,625)
4,308
(4,308)
—
—
Treasury stock acquired
—
—
(6,092,259)
—
—
6,092,259
(14,739)
—
—
(14,739)
Net income from continuing operations
—
—
—
—
—
—
—
40,631
—
40,631
Net loss from discontinued operations
—
—
—
—
—
—
—
(15,908)
—
(15,908)
Balances at September 30, 2020
—
—
39,082,894
$
18
$
199,194
5,877,544
$
(13,775)
$
(13,927)
$
—
$
171,510
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)
Nine Months Ended September 30,
2020
2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
$
24,723
$
23,894
Less: Net (income) loss from discontinued operations, net of tax
15,908
(1,908)
Net income from continuing operations
40,631
21,986
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
13,413
11,824
Provision for loan losses
133,216
235,339
Share-based compensation
6,513
7,272
Amortization of debt issuance costs
515
449
Amortization of loan premium
3,734
4,454
Amortization of derivative assets
—
108
Amortization of operating leases
(378)
113
Deferred income tax expense, net
14,178
9,418
Non-operating loss
6,692
695
Changes in operating assets and liabilities:
Prepaid expenses and other assets
(3,305)
(486)
Income taxes payable
1,156
—
Receivables from payment processors
3,470
2,022
Receivables from CSO lenders
3,436
6,489
Interest receivable
(30,417)
(53,803)
State and other taxes payable
(91)
68
Deferred revenue
(5,558)
(10,670)
Accounts payable and accrued liabilities
(9,500)
4,565
Net cash provided by continuing operating activities
177,705
239,843
Net cash provided by discontinued operating activities
1,286
29,261
Net cash provided by operating activities
178,991
269,104
CASH FLOWS FROM INVESTING ACTIVITIES:
Loans receivable originated or participations purchased
(419,472)
(771,835)
Principal collections and recoveries on loans receivable
514,316
580,002
Participation premium paid
(2,823)
(4,530)
Purchases of property and equipment
(12,867)
(14,881)
Net cash provided by (used in) continuing investing activities
79,154
(211,244)
Net cash provided by (used in) discontinued investing activities
9,457
(23,006)
Net cash provided by (used in) investing activities
88,611
(234,250)
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
10
Elevate Credit, Inc. and Subsidiaries
Nine Months Ended September 30,
(Dollars in thousands)
2020
2019
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from notes payable
$
6,500
$
49,000
Payments of notes payable
(94,000)
(60,000)
Debt issuance costs paid
(253)
(2,593)
Debt prepayment costs paid
—
(850)
ESPP shares issued
354
498
Common stock repurchased
(14,739)
(434)
Proceeds from stock option exercises
27
121
Taxes paid related to net share settlement of equity awards
(804)
(1,349)
Net cash used in continuing financing activities
(102,915)
(15,607)
Net cash used in discontinued financing activities
(16,310)
(4)
Net cash used in financing activities
(119,225)
(15,611)
Net increase in cash, cash equivalents and restricted cash
148,377
19,243
Change in cash, cash equivalents and restricted cash from discontinued operations
5,567
(6,251)
Change in cash, cash equivalents and restricted cash from continuing operations
153,944
12,992
Cash and cash equivalents, beginning of period
71,215
48,349
Restricted cash, beginning of period
2,235
2,535
Cash, cash equivalents and restricted cash, beginning of period
73,450
50,884
Cash and cash equivalents, end of period
224,259
61,641
Restricted cash, end of period
3,135
2,235
Cash, cash equivalents and restricted cash, end of period
$
227,394
$
63,876
Supplemental cash flow information:
Interest paid
$
36,979
$
49,877
Taxes paid
$
397
$
565
Non-cash activities:
CSO fees charged-off included in Deferred revenues and Loans receivable
$
684
$
4,174
CSO fees on loans paid-off prior to maturity included in Receivable from CSO lenders and Deferred revenue
$
42
$
159
Annual membership fee included in Deferred revenues and Loans receivable
$
108
$
72
Reissuances of Treasury stock
$
4,308
$
—
Changes in fair value of interest rate caps
$
—
$
304
Tax benefit of equity issuance costs included in Additional paid-in capital
$
—
$
2
Impact of deferred tax asset included in Other comprehensive income
$
1,354
36
Leasehold improvements allowance included in Property and equipment, net