­
Go to Top

Investors

Price Data
NYSEENVA

News & Media

Enova Reports Second Quarter 2018 Results

- Second quarter 2018 revenue grew 33% compared to a year ago, reaching $253 million and adjusted EBITDA grew 20% to $50 million

- Second quarter 2018 installment loan and receivables purchase agreement revenue grew 46% to $123 million and line of credit revenue grew 35% to $80 million

- Total loans outstanding grew 33% year-over-year during the second quarter, driven by near-prime installment loan portfolio growth of 39% to $416 million

- Diluted earnings per share grew 49% to $0.52 per share compared to the year ago quarter and adjusted earnings per share grew 44% to $0.59 per share

Jul 26, 2018

CHICAGO, July 26, 2018 /PRNewswire/ -- Enova International (NYSE: ENVA), a leading financial technology company offering consumer and small business loans and financing, today announced financial results for the quarter ended June 30, 2018.

Enova International Logo (PRNewsFoto/Enova International, Inc.)

"We are pleased with our strong second quarter results, driven by robust demand and stable credit across each of our six growth businesses," said David Fisher, Enova's CEO. "We've been consistent in executing our focused growth strategy, which includes the ongoing diversification of our business. These efforts have positioned us well in each of our markets to deliver sustainable and profitable long-term growth."

Second Quarter 2018 Summary

  • Total revenue of $253 million in the second quarter of 2018 increased 33% from $190 million in the second quarter of 2017.
  • Gross profit margin was 52.0% in the second quarter of 2018 compared to 57.9% in the second quarter of 2017.
  • Net income was $18 million, or $0.52 per diluted share, in the second quarter of 2018 compared to net income of $12 million, or $0.35 per diluted share, in the second quarter of 2017.
  • Second quarter 2018 adjusted EBITDA of $50 million, a non-GAAP measure, increased from $42 million in the second quarter of 2017.
  • Adjusted earnings of $21 million, or $0.59 per diluted share, a non-GAAP measure, in the second quarter of 2018 increased from adjusted earnings of $14 million, or $0.41 per diluted share, in the second quarter of 2017.

"The second quarter marks the 11th consecutive quarter we have delivered financial results within or exceeding our guidance ranges, demonstrating the strength of our business model and consistency of our execution," said Steve Cunningham, CFO of Enova. "Strong receivables growth, stable credit, significant operating leverage, and balance sheet flexibility continue to drive our financial results."

Enova ended the second quarter of 2018 with unrestricted cash and cash equivalents of $47 million. As of June 30, 2018, the company had total debt outstanding of $763 million, which included $179 million outstanding under Enova's $295 million securitization facilities. During the second quarter, Enova generated $143 million of cash flow from operations. On July 23, the Company added a new 3-year, $150 million securitization facility to support growth of the NetCredit business.  The new facility increases total NetCredit securitization capacity to $445 million and lowers the cost of financing.

Outlook

For the third quarter of 2018, Enova expects total revenue of $260 million to $275 million, GAAP results of $0.30 diluted earnings per share to $0.52 diluted earnings per share, adjusted EBITDA of $40 million to $50 million, and adjusted earnings per share of $0.37 to $0.58. For the full year 2018, Enova expects total revenue of $1.035 billion to $1.075 billion, GAAP diluted earnings per share of $1.78 to $2.22, adjusted EBITDA of $195 million to $215 million, and adjusted earnings per share of $2.19 to $2.63.

For information regarding the non-GAAP financial measures discussed in this release, please see "Non-GAAP Financial Measures" and "Reconciliation of GAAP to Non-GAAP Financial Measures" below.

Conference Call

Enova will host a conference call to discuss its results at 4 p.m. Central Time / 5 p.m. Eastern Time today, Thursday, July 26th. The live webcast of the call can be accessed at the Enova Investor Relations website at http://ir.enova.com, along with the company's earnings press release and supplemental financial information. The U.S. dial-in for the call is 1-855-560-2575 (1-412-542-4161 for non-U.S. callers). Please ask to be joined to the Enova International call. A replay of the conference call will be available until August 2, 2018, at 10:59 p.m. Central Time / 11:59 p.m. Eastern Time, while an archived version of the webcast will be available on the Enova Investor Relations website for 90 days. The U.S. dial-in for the conference call replay is 1-877-344-7529 (1-412-317-0088). The replay access code is 10121788.

About Enova

Enova (NYSE: ENVA) is a leading provider of online financial services to non-prime consumers and small businesses, providing access to credit powered by its advanced analytics, innovative technology, and world-class online platform and services. Enova has provided more than 5 million customers around the globe with access to more than $20 billion in loans and financing. The financial technology company has a portfolio of trusted brands serving consumers, including CashNetUSA®, NetCredit®, On Stride Financial®, Pounds to Pocket®, QuickQuid® and Simplic®; two brands serving small businesses, Headway Capital® and The Business Backer®; and offers online lending platform services to lenders. Through its Enova Decisions™ brand, it also delivers on-demand decision-making technology and real-time predictive analytics services to clients. You can learn more about the company and its brands at www.enova.com.

Cautionary Statement Concerning Forward Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about the business, financial condition and prospects of Enova. These forward-looking statements give current expectations or forecasts of future events and reflect the views and assumptions of Enova's senior management with respect to the business, financial condition and prospects of Enova as of the date of this release and are not guarantees of future performance. The actual results of Enova could differ materially from those indicated by such forward-looking statements because of various risks and uncertainties applicable to Enova's business, including, without limitation, those risks and uncertainties indicated in Enova's filings with the Securities and Exchange Commission ("SEC"), including our annual report on Form 10-K, quarterly reports on Forms 10-Q and current reports on Forms 8-K. These risks and uncertainties are beyond the ability of Enova to control, and, in many cases, Enova cannot predict all of the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. When used in this release, the words "believes," "estimates," "plans," "expects," "anticipates" and similar expressions or variations as they relate to Enova or its management are intended to identify forward-looking statements. Enova cautions you not to put undue reliance on these statements. Enova disclaims any intention or obligation to update or revise any forward-looking statements after the date of this release.

Non-GAAP Financial Measures

In addition to the financial information prepared in conformity with generally accepted accounting principles, or GAAP, Enova provides historical non-GAAP financial information. Management believes that presentation of non-GAAP financial information is meaningful and useful in understanding the activities and business metrics of Enova's operations. Management believes that these non-GAAP financial measures reflect an additional way of viewing aspects of Enova's business that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business.

Management provides non-GAAP financial information for informational purposes and to enhance understanding of Enova's GAAP consolidated financial statements. Readers should consider the information in addition to, but not instead of or superior to, Enova's financial statements prepared in accordance with GAAP. This non-GAAP financial information may be determined or calculated differently by other companies, limiting the usefulness of those measures for comparative purposes.

Combined Loans and Finance Receivables

Enova has provided combined loans and finance receivables, which is a non-GAAP measure. Enova also reports allowances and liabilities for estimated losses on loans and finance receivables individually and on a combined basis, which are GAAP measures that are included in Enova's financial statements. Management believes these measures provide investors with important information needed to evaluate the magnitude of potential cost of revenue and the opportunity for revenue performance of the loan and finance receivables portfolio on an aggregate basis. Management believes that the comparison of the aggregate amounts from period to period is more meaningful than comparing only the residual amount on Enova's balance sheet since both revenue and the cost of revenue for loans and finance receivables are impacted by the aggregate amount of loans and finance receivables owned by Enova and those guaranteed by Enova as reflected in its financial statements.

Adjusted Earnings and Adjusted Earnings Per Share

In addition to reporting financial results in accordance with GAAP, Enova has provided adjusted earnings and adjusted earnings per share, or, collectively, the Adjusted Earnings Measures, which are non-GAAP measures. Management believes that the presentation of these measures provides investors with greater transparency and facilitates comparison of operating results across a broad spectrum of companies with varying capital structures, compensation strategies, derivative instruments and amortization methods, which provides a more complete understanding of Enova's financial performance, competitive position and prospects for the future. Management also believes that investors regularly rely on non-GAAP financial measures, such as the Adjusted Earnings Measures, to assess operating performance and that such measures may highlight trends in Enova's business that may not otherwise be apparent when relying on financial measures calculated in accordance with GAAP. In addition, management believes that the adjustments shown below are useful to investors in order to allow them to compare Enova's financial results during the periods shown without the effect of certain expense items.

Adjusted EBITDA

Adjusted EBITDA is a non-GAAP measure that Enova defines as earnings excluding depreciation, amortization, interest, foreign currency transaction gains or losses, taxes, stock-based compensation, loss on early extinguishment of debt and acquisition related costs, and Adjusted EBITDA margin is a non-GAAP measure that Enova defines as Adjusted EBITDA as a percentage of total revenue. Management believes Adjusted EBITDA and Adjusted EBITDA margin are used by investors to analyze operating performance and evaluate Enova's ability to incur and service debt and Enova's capacity for making capital expenditures. Adjusted EBITDA and Adjusted EBITDA margin are also useful to investors to help assess Enova's estimated enterprise value. The computation of Adjusted EBITDA and Adjusted EBITDA margin as presented below may differ from the computation of similarly-titled measures provided by other companies.

 

ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(dollars in thousands, except per share data)

(Unaudited)




June 30,



December 31,




2018



2017



2017


Assets













Cash and cash equivalents


$

47,414



$

46,209



$

68,684


Restricted cash (includes restricted cash of consolidated VIEs of $21,744, $19,119 and $21,696 as of June 30, 2018 and 2017 and December 31, 2017, respectively)



28,863




26,636




29,460


Loans and finance receivables, net (includes loans of consolidated VIEs of $257,972, $240,444 and $282,724 and allowance for losses of $21,019, $17,072 and $22,728 as of June 30, 2018 and 2017 and December 31, 2017, respectively)



750,131




563,996




704,705


Income taxes receivable



3,006




13,410




4,092


Other receivables and prepaid expenses



25,373




22,006




23,817


Property and equipment, net



47,752




44,329




48,525


Goodwill



267,013




267,012




267,015


Intangible assets, net



3,790




4,865




4,325


Other assets



9,862




13,406




8,837


Total assets


$

1,183,204



$

1,001,869



$

1,159,460


Liabilities and Stockholders' Equity













Accounts payable and accrued expenses


$

72,406



$

62,799



$

77,123


Deferred tax liabilities, net



14,322




25,753




12,108


Long-term debt (includes long-term debt of consolidated VIEs of $179,059, $151,987 and $211,406 and debt issuance costs of $2,131, $1,054 and $3,271, as of June 30, 2018 and 2017 and December 31, 2017, respectively)



762,831




638,749




788,542


Total liabilities



849,559




727,301




877,773


Commitments and contingencies













Stockholders' equity:













Common stock, $0.00001 par value, 250,000,000 shares authorized, 34,633,819, 33,752,662 and 33,932,673 shares issued and 34,145,146, 33,635,215 and 33,504,555 outstanding as of June 30, 2018 and 2017 and December 31, 2017, respectively










Preferred stock, $0.00001 par value, 25,000,000 shares authorized, no shares issued and outstanding










Additional paid in capital



39,335




23,753




29,781


Retained earnings



312,440




261,180




264,695


Accumulated other comprehensive loss



(10,905)




(9,069)




(7,086)


Treasury stock, at cost (488,673, 117,447 and 428,118 shares as of June 30, 2018 and 2017 and December 31, 2017, respectively)



(7,225)




(1,296)




(5,703)


Total stockholders' equity



333,645




274,568




281,687


Total liabilities and stockholders' equity


$

1,183,204



$

1,001,869



$

1,159,460


 

ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)

(Unaudited)




Three Months Ended



Six Months Ended




June 30,



June 30,




2018



2017



2018



2017


Revenue


$

253,301



$

189,904



$

507,599



$

382,167


Cost of Revenue



121,494




79,862




230,047




161,746


Gross Profit



131,807




110,042




277,552




220,421


Expenses

















Marketing



29,386




23,410




57,122




42,993


Operations and technology



27,195




21,818




52,733




45,349


General and administrative



28,295




26,245




55,216




51,941


Depreciation and amortization



3,837




3,366




7,675




6,863


Total Expenses



88,713




74,839




172,746




147,146


Income from Operations



43,094




35,203




104,806




73,275


Interest expense, net



(19,355)




(17,012)




(39,028)




(34,234)


Foreign currency transaction (loss) gain



(204)




62




(2,292)




289


Loss on early extinguishment of debt









(4,710)





Income before Income Taxes



23,535




18,253




58,776




39,330


Provision for income taxes



5,310




6,380




12,653




13,605


Net Income


$

18,225



$

11,873



$

46,123



$

25,725


Earnings Per Share:

















Net income per common share:

















Basic


$

0.54



$

0.35



$

1.36



$

0.77


Diluted


$

0.52



$

0.35



$

1.32



$

0.75


Weighted average common shares outstanding:

















Basic



33,984




33,553




33,821




33,463


Diluted



35,371




34,125




34,966




34,081


 

ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(dollars in thousands)

(Unaudited)




Six Months Ended June 30,




2018



2017


Cash flows provided by operating activities


$

295,716



$

186,058


Cash flows used in investing activities









Loans and finance receivables



(276,550)




(164,731)


Property and equipment additions



(7,065)




(5,301)


Other investing activities



42




1,482


Total cash flows used in investing activities



(283,573)




(168,550)


Cash flows used in financing activities



(33,599)




(15,900)


Effect of exchange rates on cash, cash equivalents and restricted cash



(411)




4,997


Net increase in cash, cash equivalents and restricted cash



(21,867)




6,605


Cash, cash equivalents and restricted cash at beginning of year



98,144




66,240


Cash, cash equivalents and restricted cash at end of period


$

76,277



$

72,845


 

ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES

GEOGRAPHIC INFORMATION

(dollars in thousands)


The following table presents information on Enova's domestic and international operations for the three and six months ended June 30, 2018 and 2017.




Three Months Ended June 30,












2018



2017



$ Change



% Change


Domestic:

















Revenue


$

213,638



$

158,073



$

55,565




35.2

%

Cost of revenue



102,206




67,393




34,813




51.7


Gross profit


$

111,432



$

90,680



$

20,752




22.9


Gross profit margin



52.2

%



57.4

%



(5.2)

%



(9.1)

%

International:

















Revenue


$

39,663



$

31,831



$

7,832




24.6

%

Cost of revenue



19,288




12,469




6,819




54.7


Gross profit


$

20,375



$

19,362



$

1,013




5.2


Gross profit margin



51.4

%



60.8

%



(9.4)

%



(15.5)

%

Total:

















Revenue


$

253,301



$

189,904



$

63,397




33.4

%

Cost of revenue



121,494




79,862




41,632




52.1


Gross profit


$

131,807



$

110,042



$

21,765




19.8


Gross profit margin



52.0

%



57.9

%



(5.9)

%



(10.2)

%











Six Months Ended June 30,












2018



2017



$ Change



% Change


Domestic:

















Revenue


$

426,604



$

322,742



$

103,862




32.2

%

Cost of revenue



190,319




138,042




52,277




37.9


Gross profit


$

236,285



$

184,700



$

51,585




27.9


Gross profit margin



55.4

%



57.2

%



(1.8)

%



(3.1)

%

International:

















Revenue


$

80,995



$

59,425



$

21,570




36.3

%

Cost of revenue



39,728




23,704




16,024




67.6


Gross profit


$

41,267



$

35,721



$

5,546




15.5


Gross profit margin



51.0

%



60.1

%



(9.1)

%



(15.1)

%

Total:

















Revenue


$

507,599



$

382,167



$

125,432




32.8

%

Cost of revenue



230,047




161,746




68,301




42.2


Gross profit


$

277,552



$

220,421



$

57,131




25.9


Gross profit margin



54.7

%



57.7

%



(3.0)

%



(5.2)

%

 

ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES

LOANS AND FINANCE RECEIVABLES FINANCIAL AND OPERATING DATA

(dollars in thousands)


The following table shows loans and finance receivables and related loan loss activity, which is based on loan and finance receivable balances, for the three months ended June 30, 2018 and 2017.


Three Months Ended June 30,


2018



2017



Change


Cost of revenue


$

121,494



$

79,862



$

41,632


Charge-offs (net of recoveries)



111,785




78,768




33,017


Average combined loans and finance receivables, gross:













Company owned(a)



840,077




619,699




220,378


Guaranteed by Enova(a)(b)



28,138




24,999




3,139


Average combined loans and finance receivables, gross (a)(c)


$

868,215



$

644,698



$

223,517


Ending combined loans and finance receivables, gross:













Company owned


$

871,915



$

647,835



$

224,080


Guaranteed by Enova(b)



28,681




28,013




668


Ending combined loans and finance receivables, gross (c)


$

900,596



$

675,848



$

224,748


Ending allowance and liability for losses


$

123,876



$

85,780



$

38,096


Combined originations (d)


$

599,280



$

512,546



$

86,734















Loans and finance receivables ratios:













Cost of revenue as a % of average combined loans and finance receivables, gross(a)(c)



14.0

%



12.4

%



1.6

%

Charge-offs (net of recoveries) as a % of average combined loans and finance receivables, gross(a)(c)



12.9

%



12.2

%



0.7

%

Gross profit margin



52.0

%



57.9

%



(5.9)

%

Allowance and liability for losses as a % of combined loans and finance receivables, gross(c)(e)



13.8

%



12.7

%



1.1

%












(a)

The average combined loans and finance receivables, gross, is the average of the month-end balances during the period.

(b)

Represents loans originated by third-party lenders through the credit services organization (or CSO) programs, which are not included in Enova's financial statements.

(c)

Non-GAAP measure. See the above discussion for additional information regarding combined loans and finance receivables.

(d)

Represents loans and finance receivables originated by Enova and third-party lenders through the CSO and includes renewals of existing origination agreements to customers in good standing. The disclosure is statistical data that is not included in Enova's financial statements.

(e)

Allowance and liability for losses as a percentage of combined loans and finance receivables, gross, is determined using period-end balances.

 

ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(dollars in thousands, except per share data)


Adjusted Earnings Measures














Three Months Ended



Six Months Ended




June 30,



June 30,




2018



2017



2018



2017


Net Income


$

18,225



$

11,873



$

46,123



$

25,725


Adjustments:

















Loss on early extinguishment of debt(a)









4,710





Intangible asset amortization



268




271




535




542


Stock-based compensation expense



2,834




2,987




5,267




5,307


Foreign currency transaction loss (gain)



204




(62)




2,292




(289)


Cumulative tax effect of adjustments



(777)




(1,113)




(2,756)




(1,923)



















Adjusted earnings


$

20,754



$

13,956



$

56,171



$

29,362



















Diluted earnings per share


$

0.52



$

0.35



$

1.32



$

0.75



















Adjusted earnings per share


$

0.59



$

0.41



$

1.61



$

0.86
















Adjusted EBITDA









Three Months Ended



Six Months Ended




June 30,



June 30,




2018



2017



2018



2017


Net Income


$

18,225



$

11,873



$

46,123



$

25,725


Depreciation and amortization expenses



3,837




3,366




7,675




6,863


Interest expense, net



19,355




17,012




39,028




34,234


Foreign currency transaction loss (gain)



204




(62)




2,292




(289)


Provision for income taxes



5,310




6,380




12,653




13,605


Stock-based compensation expense



2,834




2,987




5,267




5,307


Adjustments:

















Loss on early extinguishment of debt(a)









4,710






















Adjusted EBITDA


$

49,765



$

41,556



$

117,748



$

85,445



















Adjusted EBITDA margin calculated as follows:

















Total Revenue


$

253,301



$

189,904



$

507,599



$

382,167


Adjusted EBITDA



49,765




41,556




117,748




85,445


Adjusted EBITDA as a percentage of total revenue



19.6

%



21.9

%



23.2

%



22.4

%













(a)

In the first quarter of 2018, the Company recorded a $4.7 million ($3.7 million net of tax) loss on early extinguishment of debt related to the repurchase of $50.0 million principal amount of senior notes.

 

ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(dollars in thousands)


Estimated Adjusted EBITDA and Earnings Per Share For 2018





The following tables reconcile estimated Income from operations to Adjusted EBITDA, a non-GAAP measure and diluted income per share to adjusted earnings per share, a non-GAAP measure:




Estimated Results




Three Months Ended September 30, 2018




Low



High




Unaudited


Income from operations


$

33,100



$

43,100


Depreciation and amortization



3,900




3,900


Stock-based compensation expense



3,000




3,000


Adjusted EBITDA


$

40,000



$

50,000













Estimated Results




Year Ended December 31, 2018




Low



High




Unaudited


Income from operations


$

167,800



$

187,800


Depreciation and amortization



15,600




15,600


Stock-based compensation expense



11,600




11,600


Adjusted EBITDA


$

195,000



$

215,000













Estimated Results




Three Months Ended September 30, 2018




Low



High




Unaudited


Diluted income per share


$

0.30



$

0.52


Adjustments:









Intangible asset amortization



0.01




0.01


Stock-based compensation expense



0.08




0.08


Cumulative tax effect of adjustments



(0.02)




(0.03)


Adjusted earnings per share


$

0.37



$

0.58













Estimated Results




Year Ended December 31, 2018




Low



High




Unaudited


Diluted income per share


$

1.78



$

2.22


Adjustments:









Loss on early extinguishment of debt



0.13




0.13


Intangible asset amortization



0.03




0.03


Stock-based compensation expense



0.33




0.33


Foreign currency transaction gain



0.06




0.06


Cumulative tax effect of adjustments



(0.14)




(0.14)


Adjusted earnings per share


$

2.19



$

2.63


 

SOURCE Enova International, Inc.

For further information: Public Relations, Caroline Vasquez, Email: media@enova.com; Investor Relations, Monica Gould, Office: (212) 871-3927, Email: IR@enova.com or Lindsay Savarese, Office: (212) 331-8417, Email: IR@enova.com


print email rss