0001529864false00015298642024-10-222024-10-22

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 22, 2024

 

 

ENOVA INTERNATIONAL, INC.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware

1-35503

45-3190813

(State or Other Jurisdiction
of Incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

175 West Jackson Boulevard

 

Chicago, Illinois

 

60604

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 312 568-4200

 

 

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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 Stock, $.00001 par value per share

 

ENVA

 

New York Stock Exchange LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

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.

 


Item 2.02 Results of Operations and Financial Condition.

On October 22, 2024, Enova International, Inc. (the “Company”) issued a press release to announce its consolidated financial results for the three months ended September 30, 2024. A copy of the Company’s press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

The information included or incorporated by reference in this Current Report on Form 8-K under this Item 2.02 is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

The following exhibits are furnished as part of this Report on Form 8-K:

Exhibit No.

Description

99.1

Enova International, Inc. press release dated October 22, 2024

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

Enova International, Inc.

 

 

 

 

Date:

October 22, 2024

By:

/s/ Sean Rahilly

 

 

 

Sean Rahilly
General Counsel & Secretary

 


Exhibit 99.1

 

Enova Reports Third Quarter 2024 Results

Strong top-line growth with total company revenue increasing 25% and originations increasing 28% from the third quarter of 2023
Diluted earnings per share of $1.57 increased 22% and adjusted earnings per share of $2.45 increased 63% compared to the third quarter of 2023
Credit performance remained strong compared to a year ago with lower consolidated net charge-off and delinquency ratios, a stable net revenue margin and a higher fair value premium on the total company portfolio
Liquidity, including cash and marketable securities and available capacity on facilities, totaled $1.2 billion at September 30

CHICAGO, October 22, 2024 /PRNewswire/ -- Enova International (NYSE: ENVA), a leading financial services company powered by machine learning and world-class analytics, today announced financial results for the third quarter ended September 30, 2024.

“For the second quarter in a row, we generated annual growth above 25% in originations, revenue and adjusted EPS as we continue to leverage our world-class machine learning risk management algorithms and sophisticated unit economic framework to swiftly adapt to the operating environment,” said David Fisher, Enova’s CEO. “Both our consumer and small business customers are performing well, resulting in solid credit performance across our portfolio. Looking forward, our diversified product offerings and strong competitive position coupled with a constructive, macroeconomic environment position us well for continued financial success.”

Third Quarter 2024 Summary

Total revenue of $690 million in the third quarter of 2024 increased 25% from $551 million in the third quarter of 2023.
Net revenue margin of 58% in the third quarter of 2024, consistent with the third quarter of 2023, reflecting continued solid credit performance.
Net income of $43 million, or $1.57 per diluted share, in the third quarter of 2024 increased 22% from $41 million, or $1.29 per diluted share, in the third quarter of 2023.
Third quarter 2024 adjusted EBITDA, a non-GAAP measure, of $172 million increased 42% from $121 million in the third quarter of 2023.
Adjusted earnings of $68 million, or $2.45 per diluted share, both non-GAAP measures, in the third quarter of 2024 increased from $48 million, or $1.50 per diluted share, in the third quarter of 2023.
Total company combined loans and finance receivables increased 23% from the end of third quarter of 2023 to a record $3.8 billion with total company originations of $1.6 billion in the quarter
Repurchased $23 million of common stock under the company’s share repurchase program

“Our ability to deliver strong top and bottom-line results that are in line or better than our expectations reflects the solid footing of our consumer and small business customers and the powerful combination of our

 


 

diversified product offerings, scalable operating model and world-class risk management capabilities,” said Steve Cunningham, CFO of Enova. “Our solid balance sheet should provide tailwinds to our future profitability in a falling interest rate environment while enabling our ability to both efficiently fund growth and return significant capital to shareholders through share repurchases.”

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 third quarter 2024 results at 4 p.m. Central Time / 5 p.m. Eastern Time today, October 22nd. 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 join the Enova International call. A replay of the conference call will be available until October 29, 2024, 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 International 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 6898465.

About Enova

Enova International (NYSE: ENVA) is a leading financial services company with powerful online lending that serves small businesses and consumers who are underserved by traditional banks. Through its world-class analytics and machine learning algorithms, Enova has provided more than 11.1 million customers with over $58 billion in loans and financing. You can learn more about the company and its portfolio of businesses at www.enova.com.

SOURCE Enova International, Inc.

For further information:

Public Relations Contact:

Erin Yeager

Email:media@enova.com

Investor Relations Contact:

Monica Gould

Office: (212)-871-3927

Email: IR@enova.com

Cassidy Fuller

Office: (415) 217-4168

Email: IR@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

The combined loans and finance receivables measures are non-GAAP measures that include loans and finance receivables that Enova owns or has purchased and loans that Enova guarantees. Management believes these non-GAAP measures provide investors with important information needed to evaluate the magnitude of potential receivable losses and the opportunity for revenue performance of the loans and finance receivable portfolio on an aggregate basis. Management also believes that the comparison of the aggregate amounts from period to period is more meaningful than comparing only the amounts reflected on Enova's consolidated balance sheet since revenue is impacted by the aggregate amount of receivables owned by Enova and those guaranteed by Enova as reflected in its consolidated financial statements.

 


 

Adjusted Earnings Measures

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

Adjusted EBITDA Measures

In addition to reporting financial results in accordance with GAAP, Enova has provided Adjusted EBITDA and Adjusted EBITDA margin, or, collectively, the Adjusted EBITDA measures, which are non-GAAP measures. Adjusted EBITDA is a non-GAAP measure that Enova defines as earnings excluding depreciation, amortization, interest, foreign currency transaction gains or losses, taxes and stock-based compensation. In addition, management believes that the adjustments for other nonoperating expenses, equity method investment income or loss and certain transaction-related costs shown below are useful to investors in order to allow them to compare our financial results during the periods shown without the effect of the expense items. Adjusted EBITDA margin is a non-GAAP measure that Enova defines as Adjusted EBITDA as a percentage of total revenue. Management believes Adjusted EBITDA Measures are used by investors to analyze operating performance and evaluate Enova's ability to incur and service debt and Enova's capacity for making capital expenditures. Adjusted EBITDA Measures are also useful to investors to help assess Enova's estimated enterprise value.

 


 

ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(dollars in thousands, except per share data)

(Unaudited)

September 30,

December 31,

2024

2023

2023

Assets

Cash and cash equivalents

$

67,500

$

62,908

$

54,357

Restricted cash

186,880

133,413

323,082

Loans and finance receivables at fair value

4,134,440

3,321,062

3,629,167

Income taxes receivable

66,290

65,664

44,129

Other receivables and prepaid expenses

68,926

58,624

71,982

Property and equipment, net

117,970

103,911

108,705

Operating lease right-of-use assets

12,705

15,984

14,251

Goodwill

279,275

279,275

279,275

Intangible assets, net

12,964

21,019

19,005

Other assets

28,746

41,193

41,583

Total assets

$

4,975,696

$

4,103,053

$

4,585,536

Liabilities and Stockholders’ Equity

Accounts payable and accrued expenses

$

259,535

$

275,160

$

261,156

Operating lease liabilities

26,346

27,136

27,042

Deferred tax liabilities, net

217,387

96,942

113,350

Long-term debt

3,293,735

2,442,784

2,943,805

Total liabilities

3,797,003

2,842,022

3,345,353

Commitments and contingencies

Stockholders’ equity:

Common stock, $0.00001 par value, 250,000,000 shares authorized, 46,453,571, 45,140,504 and 45,339,814 shares issued and 26,266,846, 30,244,289 and 29,089,258 outstanding as of September 30, 2024 and 2023 and December 31, 2023, respectively

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

Additional paid in capital

318,223

274,053

284,256

Retained earnings

1,634,059

1,453,538

1,488,306

Accumulated other comprehensive loss

(9,422

)

(7,203

)

(6,264

)

Treasury stock, at cost (20,186,725, 14,896,215 and 16,250,556 shares as of September 30, 2024 and 2023 and December 31, 2023, respectively)

(764,167

)

(459,357

)

(526,115

)

Total stockholders’ equity

1,178,693

1,261,031

1,240,183

Total liabilities and stockholders’ equity

$

4,975,696

$

4,103,053

$

4,585,536

 


 

ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2024

2023

2024

2023

Revenue

$

689,924

$

551,360

$

1,928,249

$

1,534,047

Change in Fair Value

(289,568

)

(231,749

)

(811,836

)

(629,161

)

Net Revenue

400,356

319,611

1,116,413

904,886

Operating Expenses

Marketing

141,059

116,508

372,391

292,234

Operations and technology

56,628

51,686

165,960

147,816

General and administrative

38,916

37,731

118,489

111,117

Depreciation and amortization

10,039

9,954

30,011

29,123

Total Operating Expenses

246,642

215,879

686,851

580,290

Income from Operations

153,714

103,732

429,562

324,596

Interest expense, net

(76,902

)

(48,666

)

(213,453

)

(137,571

)

Foreign currency transaction (loss) gain

(95

)

179

(162

)

8

Equity method investment loss

(16,552

)

(10

)

(16,552

)

(1,135

)

Other nonoperating expenses

(4,678

)

(25

)

(5,691

)

(279

)

Income before Income Taxes

55,487

55,210

193,704

185,619

Provision for income taxes

12,073

13,925

47,951

45,266

Net income

$

43,414

$

41,285

$

145,753

$

140,353

Earnings Per Share

Earnings per common share:

Basic

$

1.64

$

1.35

$

5.36

$

4.53

Diluted

$

1.57

$

1.29

$

5.14

$

4.35

Weighted average common shares outstanding:

Basic

26,420

30,600

27,182

31,006

Diluted

27,711

31,902

28,382

32,269

 


 

ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(dollars in thousands)

(Unaudited)

Nine Months Ended September 30,

2024

2023

Total cash flows provided by operating activities

$

1,108,056

$

852,581

Cash flows from investing activities

Loans and finance receivables

(1,298,988

)

(895,010

)

Capitalization of software development costs and purchases of fixed assets

(33,244

)

(33,429

)

Total cash flows used in investing activities

(1,332,232

)

(928,439

)

Cash flows provided by financing activities

101,911

93,569

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

(794

)

210

Net (decrease) increase in cash, cash equivalents and restricted cash

(123,059

)

17,921

Cash, cash equivalents and restricted cash at beginning of year

377,439

178,400

Cash, cash equivalents and restricted cash at end of period

$

254,380

$

196,321

 


 

ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES

LOANS AND FINANCE RECEIVABLES FINANCIAL AND OPERATING DATA

(dollars in thousands)

The following table includes financial information for loans and finance receivables, which is based on loan and finance receivable balances for the three months ended September 30, 2024 and 2023.

Three Months Ended September 30,

2024

2023

Change

Ending combined loan and finance receivable principal balance:

Company owned

$

3,593,366

$

2,904,686

$

688,680

Guaranteed by the Company(a)

18,292

13,684

4,608

Total combined loan and finance receivable principal balance(b)

$

3,611,658

$

2,918,370

$

693,288

Ending combined loan and finance receivable fair value balance:

Company owned

$

4,134,440

$

3,321,062

$

813,378

Guaranteed by the Company(a)

25,446

18,661

6,785

Ending combined loan and finance receivable fair value balance(b)

$

4,159,886

$

3,339,723

$

820,163

Fair value as a % of principal(c)

115.2

%

114.4

%

0.8

%

Ending combined loan and finance receivable balance, including principal and accrued fees/interest outstanding:

Company owned

$

3,742,767

$

3,037,904

$

704,863

Guaranteed by the Company(a)

21,797

16,533

5,264

Ending combined loan and finance receivable balance(b)

$

3,764,564

$

3,054,437

$

710,127

Average combined loan and finance receivable balance, including principal and accrued fees/interest outstanding:

Company owned(d)

$

3,658,014

$

2,947,494

$

710,520

Guaranteed by the Company(a)(d)

18,999

17,681

1,318

Average combined loan and finance receivable balance(a)(d)

$

3,677,013

$

2,965,175

$

711,838

Installment loans as percentage of average combined loan and finance receivable balance

45.9

%

53.0

%

(7.1

)%

Line of credit accounts as percentage of average combined loan and finance receivable balance

54.1

%

47.0

%

7.1

%

Revenue

$

680,338

$

543,124

$

137,214

Change in fair value

(287,037

)

(229,758

)

(57,279

)

Net revenue

393,301

313,366

79,935

Net revenue margin

57.8

%

57.7

%

0.1

%

Combined loan and finance receivable originations and purchases

$

1,613,920

$

1,261,186

$

352,734

Delinquencies:

>30 days delinquent

$

293,839

$

242,126

$

51,713

>30 days delinquent as a % of loan and finance receivable balance(c)

7.8

%

7.9

%

(0.1

)%

Charge-offs:

Charge-offs (net of recoveries)

$

309,325

$

277,903

$

31,422

Charge-offs (net of recoveries) as a % of average loan and finance receivable balance(d)

8.4

%

9.4

%

(1.0

)%

(a) Represents loans originated by third-party lenders through the CSO programs, which are not included in our consolidated balance sheets.

(b) Non-GAAP measure.

(c) Determined using period-end balances.

(d) The average combined loan and finance receivable balance is the average of the month-end balances during the period.

 


 

ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(dollars in thousands, except per share data)

Adjusted Earnings Measures

Three Months Ended

Nine Months Ended

September 30,

September 30,

2024

2023

2024

2023

Net income

$

43,414

$

41,285

$

145,753

$

140,353

Adjustments:

Transaction-related costs(a)

327

Lease termination and cease-use costs(b)

1,698

Equity method investment loss(c)

16,552

10

16,552

1,135

Other nonoperating expenses(d)

4,678

25

5,691

279

Intangible asset amortization

2,014

2,014

6,041

6,371

Stock-based compensation expense

8,116

7,075

23,519

19,280

Foreign currency transaction loss (gain)

95

(179

)

162

(8

)

Cumulative tax effect of adjustments

(6,949

)

(2,228

)

(12,181

)

(7,163

)

Adjusted earnings

$

67,920

$

48,002

$

185,864

$

161,945

Diluted earnings per share

$

1.57

$

1.29

$

5.14

$

4.35

Adjusted earnings per share

$

2.45

$

1.50

$

6.55

$

5.02

Adjusted EBITDA

Three Months Ended

Nine Months Ended

September 30,

September 30,

2024

2023

2024

2023

Net income

$

43,414

$

41,285

$

145,753

$

140,353

Depreciation and amortization expenses

10,039

9,954

30,011

29,123

Interest expense, net

76,902

48,666

213,453

137,571

Foreign currency transaction loss (gain)

95

(179

)

162

(8

)

Provision for income taxes

12,073

13,925

47,951

45,266

Stock-based compensation expense

8,116

7,075

23,519

19,280

Adjustments:

Transaction-related costs(a)

327

Equity method investment loss(c)

16,552

10

16,552

1,135

Other nonoperating expenses(d)

4,678

25

5,691

279

Adjusted EBITDA

$

171,869

$

120,761

$

483,419

$

372,999

Adjusted EBITDA margin calculated as follows:

Total Revenue

$

689,924

$

551,360

$

1,928,249

$

1,534,047

Adjusted EBITDA

171,869

120,761

483,419

372,999

Adjusted EBITDA as a percentage of total revenue

24.9

%

21.9

%

25.1

%

24.3

%

(a)
In the first quarter of 2024, the Company recorded $0.3 million ($0.2 million net of tax) of costs related to a consent solicitation for the Senior Notes due 2025.
(b)
In the first quarter of 2023, the Company recorded a loss of $1.7 million ($1.3 million net of tax) related to the exit of leased office space.
(c)
In the third quarter of 2024, the Company recorded an equity method investment loss of $16.6 million ($13.3 million net of tax) related to the write-down of its investment in Linear.
(d)
In the three- and nine-month periods ended September 30, 2024, the Company recorded other nonoperating expenses of $4.7 million ($3.5 million net of tax) and $5.7 million ($4.3 million net of tax) related to early extinguishment of debt. In the

 


 

nine-month period ended September 30, 2023, the Company recorded other nonoperating expenses of $0.3 million ($0.2 million net of tax) related to early extinguishment of debt.

 


v3.24.3
Document And Entity Information
Oct. 22, 2024
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Oct. 22, 2024
Entity Registrant Name ENOVA INTERNATIONAL, INC.
Entity Central Index Key 0001529864
Entity Emerging Growth Company false
Entity File Number 1-35503
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 45-3190813
Entity Address, Address Line One 175 West Jackson Boulevard
Entity Address, City or Town Chicago
Entity Address, State or Province IL
Entity Address, Postal Zip Code 60604
City Area Code 312
Local Phone Number 568-4200
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $.00001 par value per share
Trading Symbol ENVA
Security Exchange Name NYSE

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