ENVA Enova International Inc

 

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): January 30, 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:

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. ☐

 

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Item 2.02 Results of Operations and Financial Condition.

On January 30, 2024, Enova International, Inc. (the “Company”) issued a press release to announce its consolidated financial results for the three months ended December 31, 2023. 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 January 30, 2024
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

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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:	January 30, 2024	By:	/s/ Sean Rahilly
			Sean Rahilly General Counsel & Secretary

 

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Exhibit 99.1

 

Enova Reports Fourth Quarter and Full Year 2023 Results

 

 

CHICAGO, January 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

 

Full Year 2023 Summary

 

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“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 30th. 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.

 

 

 

SOURCE Enova International, Inc.

For further information:

 

Public Relations Contact:

Erin Yeager

Email: media@enova.com

 

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Investor Relations Contact:

Lindsay Savarese

Office: (212) 331-8417

Email: IR@enova.com

 

Cassidy Fuller

Office: (415) 217-4168

Email: IR@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

 

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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.

 

 

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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 December 31, 2023 and 2022, respectively)			(526,115	)			(372,928	)
Total stockholders' equity			1,240,183				1,186,145
Total liabilities and stockholders' equity		$	4,585,536			$	3,780,889

 

 

 

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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

 

 

 

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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

 

 

 

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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 receivable balance(d)			9.7	%			8.8	%			0.9	%

(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.

 

 

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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	%

 

 

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v3.24.0.1

Document And Entity Information	Jan. 30, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jan. 30, 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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