Enova Reports Fourth Quarter and Full Year 2023 Results
-- Total revenue increased 20% from the fourth quarter of 2022 to $584
million
-- Diluted earnings per share totaled $1.13 and adjusted earnings per share
totaled $1.83
-- Total company combined loans and finance receivables increased 16% from
the end of fourth quarter of 2022 to $3.3 billion as total company
originations reached a quarterly record of $1.4 billion
-- Continued solid credit performance and outlook with a fourth quarter net
revenue margin of 56% and a sequential increase in the fair value of the
consolidated portfolio as a percentage of principal to 115% at December
31
-- Liquidity, including cash and marketable securities and available
capacity on facilities, totaled $870 million at December 31
-- Repurchased $66 million of common stock under the company's share
repurchase program
CHICAGO, Jan. 30, 2024 /PRNewswire/ -- Enova International (NYSE: ENVA), a leading financial technology company powered by machine learning and world-class analytics, today announced financial results for the fourth quarter and full year ended December 31, 2023.
"We are pleased to end the year on a positive note with another strong quarter of solid revenue and profitable growth," said David Fisher, Enova's CEO. "Our performance in 2023 was made possible by the world class team we have built at Enova, along with our flexible online-only business model, nimble machine learning powered credit risk management capabilities, diversified product offerings and solid balance sheet. We delivered a record quarter of originations, driven by strong demand, especially in our SMB business and solid credit performance across our entire portfolio. Looking ahead, we feel like we are in a strong position heading into 2024 with an improving macroeconomic environment and good momentum across our entire product range."
Fourth Quarter 2023 Summary
-- Total revenue of $584 million in the fourth quarter of 2023 increased
20% from $486 million in the fourth quarter of 2022.
-- Net revenue margin of 56% in the fourth quarter of 2023 compared to 60%
in the fourth quarter of 2022.
-- Net income of $35 million, or $1.13 per diluted share, in the fourth
quarter of 2023 compared to $51 million, or $1.56 per diluted share, in
the fourth quarter of 2022.
-- Fourth quarter 2023 adjusted EBITDA, a non-GAAP measure, of $130 million
compared to $120 million in the fourth quarter of 2022.
-- Adjusted earnings of $57 million, or $1.83 per diluted share, both
non-GAAP measures, in the fourth quarter of 2023 compared to adjusted
earnings of $57 million, or $1.76 per diluted share, in the fourth
quarter of 2022.
Full Year 2023 Summary
-- Total revenue of $2.1 billion in 2023 increased 22% from $1.7 billion in
2022.
-- Net revenue margin of 58% in 2023 compared to 64% in 2022.
-- Net income from continuing operations of $175 million, or $5.49 per
diluted share, in 2023, compared to $207 million, or $6.19 per diluted
share, in 2022.
-- Full year 2023 adjusted EBITDA, a non-GAAP measure, of $503 million
compared to $443 million in 2022.
-- Adjusted earnings of $219 million, or $6.85 per diluted share, both
non-GAAP measures, in 2023, compared to adjusted earnings of $228
million, or $6.81 per diluted share, in 2022.
"We ended 2023 with positive momentum as strong growth in originations, receivables and revenue along with solid credit and operating efficiency drove another quarter of solid financial results," said Steve Cunningham, CFO of Enova. "We continued to successfully access multiple funding markets during the fourth quarter and our ample liquidity and strong balance sheet enabled record originations this quarter while returning significant capital to shareholders through share repurchases. Our strong financial position as we begin 2024 has us well positioned to drive profitable growth and deliver on our commitment to generating long-term shareholder value."
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 fourth quarter and full year 2023 results at 4 p.m. Central Time / 5 p.m. Eastern Time today, January 30(th). 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 February 6, 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 9204889.
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 9.5 million customers with over $53 billion in loans and financing. You can learn more about the company and its portfolio of businesses at www.enova.com.
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, certain transaction-related costs and a discrete regulatory settlement 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)
December 31,
2023 2022
Assets
Cash and cash equivalents $
54,357 $
100,165
Restricted cash 323,082 78,235
Loans and finance receivables at fair value 3,629,167 3,018,528
Income taxes receivable 44,129 43,741
Other receivables and prepaid expenses 71,982 66,267
Property and equipment, net 108,705 93,228
Operating lease right-of-use asset 14,251 19,347
Goodwill 279,275 279,275
Intangible assets, net 19,005 27,390
Other assets 41,583 54,713
Total assets $
4,585,536 $
3,780,889
Liabilities and Stockholders' Equity
Accounts payable and accrued expenses $
261,156 $
198,320
Operating lease liability 27,042 33,595
Deferred tax liabilities, net 113,350 104,169
Long-term debt 2,943,805 2,258,660
Total liabilities 3,345,353 2,594,744
Commitments and contingencies
Stockholders' equity:
Common stock, $0.00001 par value, 250,000,000 shares authorized, 45,339,814
and 44,326,999 shares issued and 29,089,258 and 31,220,928 outstanding as of
December 31, 2023 and 2022, respectively
Preferred stock, $0.00001 par value, 25,000,000 shares authorized, no shares
issued and outstanding
Additional paid in capital 284,256 251,878
Retained earnings 1,488,306 1,313,185
Accumulated other comprehensive loss (6,264) (5,990)
Treasury stock, at cost (16,250,556 and 13,106,071 shares as of (526,115) (372,928)
December 31, 2023 and 2022, respectively)
Total stockholders' equity 1,240,183 1,186,145
Total liabilities and stockholders' equity $
4,585,536 $
3,780,889
ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
2023 2022 2023 2022
Revenue $
583,592 $
486,164 $
2,117,639 $
1,736,085
Change in Fair Value (258,556) (196,056) (887,717) (618,521)
Net Revenue 325,036 290,108 1,229,922 1,117,564
Operating Expenses
Marketing 122,226 96,573 414,460 382,573
Operations and technology 47,089 44,723 194,905 173,668
General and administrative 49,148 35,064 160,265 140,464
Depreciation and amortization 9,034 8,499 38,157 36,867
Total Operating Expenses 227,497 184,859 807,787 733,572
Income from Operations 97,539 105,249 422,135 383,992
Interest expense, net (57,208) (37,530) (194,779) (115,887)
Foreign currency transaction gain (loss), net 49 (715) 57 (645)
Equity method investment income (loss) 1,251 (87) 116 6,435
Other nonoperating expenses (3) (282) (1,321)
Income before Income Taxes 41,628 66,917 227,247 272,574
Provision for income taxes 6,860 16,045 52,126 65,150
Net income $
34,768 $
50,872 $
175,121 $
207,424
Earnings Per Share:
Earnings per common share:
Basic $
1.17 $
1.62 $
5.71 $
6.42
Diluted $
1.13 $
1.56 $
5.49 $
6.19
Weighted average common shares outstanding:
Basic 29,687 31,401 30,673 32,290
Diluted 30,887 32,627 31,921 33,483
ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(dollars in thousands)
(Unaudited)
Year Ended December 31,
2023 2022
Cash flows provided by operating activities $
1,166,869 $
893,998
Cash flows from investing activities
Loans and finance receivables (1,449,417) (1,631,354)
Capitalization of software development costs and purchases of fixed assets (45,241) (43,629)
Sale of subsidiary 8,713
Total cash flows used in investing activities (1,494,658) (1,666,270)
Cash flows provided by financing activities 526,541 724,866
Effect of exchange rates on cash 287 (77)
Net change in cash and cash equivalents and restricted cash 199,039 (47,483)
Cash, cash equivalents and restricted cash at beginning of year 178,400 225,883
Cash, cash equivalents and restricted cash at end of period $
377,439 $
178,400
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 December 31, 2023 and 2022.
Three Months Ended December 31 2023 2022 Change
---
Ending combined loan and finance receivable principal balance:
Company owned $
3,154,735 $
2,739,164 $
415,571
Guaranteed by the Company(a) 13,537 12,937 600
Total combined loan and finance receivable principal balance(b) $
3,168,272 $
2,752,101 $
416,171
Ending combined loan and finance receivable fair value balance:
Company owned $
3,629,167 $
3,018,528 $
610,639
Guaranteed by the Company(a) 18,534 16,257 2,277
Ending combined loan and finance receivable fair value balance(b) $
3,647,701 $
3,034,785 $
612,916
Fair value as a % of principal(c) 115.1 110.3 4.8
% % %
Ending combined loan and finance receivable balance, including
principal and accrued fees/interest outstanding:
Company owned $
3,297,082 $
2,837,799 $
459,283
Guaranteed by the Company(a) 16,351 15,644 707
Ending combined loan and finance receivable balance(b) $
3,313,433 $
2,853,443 $
459,990
Average combined loan and finance receivable balance, including
principal and accrued fees/interest outstanding:
Company owned(d) $
3,141,479 $
2,723,006 $
418,473
Guaranteed by the Company(a)(d) 16,341 15,050 1,291
Average combined loan and finance receivable balance(a)(d) $
3,157,820 $
2,738,056 $
419,764
Revenue $
574,721 $
478,945 $
95,776
Change in fair value (256,412) (194,375) (62,037)
Net revenue 318,309 284,570 33,739
Net revenue margin 55.4 59.4 (4.0)
% % %
Change in fair value as a % of average loan and finance receivable balance(d) 8.1 7.1 1.0
% % %
Delinquencies:
---
>30 days delinquent $
263,524 $
190,119 $
73,405
>30 days delinquent as a % of loan and finance receivable balance(c) 8.0 6.7 1.3
% % %
Charge-offs:
---
Charge-offs (net of recoveries) $
305,436 $
240,531 $
64,905
Charge-offs (net of recoveries) as a % of average loan and finance 9.7 8.8 0.9
% % %
receivable balance(d)
(a) Represents loans originated by third-party lenders through the CSO programs, which are not included in our
consolidated balance sheets.
(b)
Non-GAAP measure.
(c)
Determined using period-end balances.
(d) The average combined loan and finance receivable balance is the average of the month-end balances during the
period.
ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(dollars in thousands, except per share data)
Adjusted Earnings Measures
Three Months Ended Year Ended
December 31, December 31,
2023 2022 2023 2022
Net income $
34,768 $
50,872 $
175,121 $
207,424
Adjustments:
Transaction-related costs(a) 755 755
Lease termination and cease use costs(b) 1,698
Equity method investment (income) loss(c) (1,251) 87 (116) (6,107)
Other nonoperating expenses(d) 3 282 1,321
Intangible asset amortization 2,014 2,014 8,385 8,055
Stock-based compensation expense 7,458 5,993 26,738 21,950
Foreign currency transaction (gain) loss, net (49) 715 (57) 645
Cumulative tax effect of adjustments (2,293) (2,191) (9,456) (5,365)
Regulatory settlement(e) 15,201 15,201
Adjusted earnings $
56,606 $
57,490 $
218,551 $
227,923
Diluted earnings per share $
1.13 $
1.56 $
5.49 $
6.19
Adjusted earnings per share $
1.83 $
1.76 $
6.85 $
6.81
Adjusted EBITDA
Three Months Ended Year Ended
December 31, December 31,
2023 2022 2023 2022
Net income $
34,768 $
50,872 $
175,121 $
207,424
Depreciation and amortization expenses 9,034 8,499 38,157 36,867
Interest expense, net 57,208 37,530 194,779 115,887
Foreign currency transaction (gain) loss, net (49) 715 (57) 645
Provision for income taxes 6,860 16,045 52,126 65,150
Stock-based compensation expense 7,458 5,993 26,738 21,950
Adjustments:
Transaction-related costs(a) 755 755
Equity method investment (income) loss(c) (1,251) 87 (116) (6,435)
Regulatory settlement(e) 15,201 15,201
Other nonoperating expenses(d) 3 282 1,321
Adjusted EBITDA $
129,987 $
119,741 $
502,986 $
442,809
Adjusted EBITDA margin calculated as follows:
Total Revenue $
583,592 $
891,761 $
2,117,639 $
1,736,085
Adjusted EBITDA 129,987 119,741 502,986 442,809
Adjusted EBITDA as a percentage of total revenue 22.3 13.4 23.8 25.5
% % % %
(a) In the fourth quarter of 2023, the Company recorded $0.8 million ($0.6 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 second quarter of 2022, the Company recorded equity method investment income of $6.3 million ($3.6 million net of tax) that was comprised
primarily of a gain of $11.0 million on an equity method investment, partially offset by a $4.4 million loss on the sale of another equity method
investment.
(d) In the second and third quarters of 2022, the Company recorded other nonoperating expenses totaling $1.3 million ($1.0 million net of tax) related to
incomplete transactions.
(e) In the fourth quarter of 2023, the Company reached an agreement with the Consumer Financial Protection Bureau, or the CFPB, pursuant to which it
agreed to pay a civil money penalty of $15.0 million, which is nondeductible for tax purposes.
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SOURCE Enova International, Inc.
