CURO Group Holdings Corp. Announces Third Quarter 2021 Financial Results
Company Owned Gross Loans Receivable Grew 77.4% versus Third Quarter 2020; Consolidated Revenue Grew 15.0%
WICHITA, Kan.–(BUSINESS WIRE)–CURO Group Holdings Corp. (NYSE: CURO) (“CURO” or the “Company”), a tech-enabled, omni-channel consumer finance company serving a full spectrum of non-prime and prime consumers in the U.S. and Canada, today announced financial results for its third quarter ended September 30, 2021.
“We posted extremely strong loan growth in our Canadian businesses and demand returned as expected in the U.S. during the third quarter driving sequential revenue increases across all three segments,” said Don Gayhardt, CURO’s Chief Executive Officer. “Canada POS Lending balances were up 37% and revenue up 63% sequentially as we started onboarding the significant volume from Flexiti’s 10-year exclusive point-of-sale financing partnership with LFL Group, Canada’s largest home furnishings retailer. Flexiti’s originations were up nearly 2x year-over-year. Canada Direct Lending’s growth trajectory continued with third quarter loans up 34% year-over-year and 8% sequentially. U.S. loans increased by 9% (excluding the Verge Credit runoff portfolio) and revenue by 11% compared to this year’s second quarter. On a consolidated basis, third quarter total revenue increased 15.0% and total gross loans receivable increased 77.4% versus the third quarter of 2020.”
“Our consolidated net charge-off rate improved by approximately 240 bps year over year and delinquencies remained at historically low levels. Our customers drove stable and excellent credit quality in the third quarter, which was aided by our newly acquired Flexiti portfolio. On the U.S. front, as loan growth returned, loan loss provisioning began to reflect more normalized levels.”
“This was another successful quarter in our journey to transform CURO into a full-spectrum North American consumer lender while reducing risk and creating value by diversifying our product and channel mix. We recently raised our 2022 and 2023 revenue and earnings growth outlook for Canada and we are investing prudently for post-pandemic loan growth in the U.S.”
“We expect strong revenue and growth trends to continue as we exit 2021 and we execute on our strategic growth initiatives and demand continues to recover from the COVID-19 pandemic. Between our unique collection of businesses in the U.S. and Canada and the strong team we have in place to execute on our identified growth opportunities, we are confident in our ability to both drive revenue and meaningfully scale profitability to create value.”
Consolidated Summary Results – Unaudited
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||
|
(in thousands, except per share data) |
|
2021 |
2020 |
Variance |
|
2021 |
2020 |
Variance |
||||||
|
Revenue |
|
$ 209,280 |
|
$ 182,003 |
|
15.0 |
% |
|
$ 593,524 |
|
$ 645,318 |
|
(8.0) |
% |
|
Net revenue |
|
138,562 |
|
127,253 |
|
8.9 |
% |
|
441,496 |
|
426,339 |
|
3.6 |
% |
|
Company Owned gross loans receivable |
|
882,356 |
|
497,442 |
|
77.4 |
% |
|
882,356 |
|
497,442 |
|
77.4 |
% |
|
Unrestricted cash |
|
205,785 |
|
207,071 |
|
(0.6) |
% |
|
205,785 |
|
207,071 |
|
(0.6) |
% |
|
Net (loss) income |
|
(42,039) |
|
12,881 |
|
# |
|
88,213 |
|
71,259 |
|
23.8 |
% |
|
|
Adjusted Net Income (1) |
|
6,445 |
|
11,326 |
|
(43.1) |
% |
|
53,967 |
|
65,772 |
|
(17.9) |
% |
|
Diluted (Loss) Earnings per Share from continuing operations |
|
($ 1.02) |
|
$ 0.31 |
|
# |
|
$ 2.03 |
|
$ 1.68 |
|
20.8 |
% |
|
|
Adjusted Diluted Earnings per Share from continuing operations (1)(2) |
|
$ 0.15 |
|
$ 0.27 |
|
(44.4) |
% |
|
$ 1.24 |
|
$ 1.58 |
|
(21.5) |
% |
|
EBITDA (1) |
|
(22,324) |
|
34,800 |
|
# |
|
205,923 |
|
139,487 |
|
47.6 |
% |
|
|
Adjusted EBITDA (1) |
|
37,623 |
|
36,115 |
|
4.2 |
% |
|
151,700 |
|
153,031 |
|
(0.9) |
% |
|
Weighted Average Shares — diluted |
|
41,220 |
|
41,775 |
|
|
|
43,422 |
|
41,660 |
|
|
||
|
Adjusted Weighted Average Shares — diluted (2) |
|
43,285 |
|
41,775 |
|
|
|
43,422 |
|
41,660 |
|
|
||
|
# – Variance greater than 100% or not meaningful |
||||||||||||||
|
(1) These are non-GAAP metrics. For a reconciliation of each non-GAAP metric to the nearest GAAP metric, see the applicable reconciliations contained under “Results of Operations.” For a description of each non-GAAP metric, see “Non-GAAP Financial Measures.” |
||||||||||||||
|
(2) We calculate Adjusted Diluted Earnings per Share utilizing diluted shares outstanding as of September 30, 2021. If we record a loss from continuing operations under U.S. GAAP, shares outstanding utilized to calculate Diluted Earnings per Share from continuing operations are equivalent to basic shares outstanding. Shares outstanding utilized to calculate Adjusted Earnings per Share from continuing operations reflect the number of diluted shares we would have reported if reporting Net income from continuing operations under U.S. GAAP. |
||||||||||||||
We reported Net Loss of $42.0 million ($1.02 diluted loss per share) for the three months ended September 30, 2021, primarily due to the loss on the extinguishment of our former senior notes (“8.25% Senior Secured Notes”) refinancing. We reported Adjusted Net Income of $6.4 million ($0.15 adjusted diluted earnings per share) on revenue of $209.3 million for the three months ended September 30, 2021. For the nine months ended September 30, 2021, we reported Net income of $88.2 million ($2.03 diluted earnings per share) and Adjusted Net Income of $54.0 million ($1.24 adjusted diluted earnings per share) on revenue of $593.5 million.
Below are additional highlights of our performance during the three and nine months ended September 30, 2021:
-
Loans Receivable
- Year-over-year growth in Company Owned gross loans receivable and combined gross loans receivable of $384.9 million, or 77.4%, and $388.6 million, or 72.3%, respectively.
- Canada Direct Lending gross loans receivable grew $98.7 million, or 33.8%, year over year and $29.6 million, or 8.2%, sequentially (described within this release as the change from the second quarter to the third quarter).
- Canada POS Lending gross loans receivable were $302.3 million. Canada POS Lending was added when we acquired Flexiti in March 2021. Sequentially, Canada POS Lending gross loans receivable grew $80.9 million, or 36.5%, primarily driven by Flexiti’s exclusive agreement with Leon’s Furniture Limited (“LFL”), Canada’s largest home furnishings retailer, which commenced in July 2021, as well the onboarding and ramp up of other merchants.
- U.S. Company Owned gross loans receivable declined $16.1 million, or 7.8%, year-over-year. Excluding runoff portfolios in California, Virginia and Verge Installment loans, U.S. Company Owned gross loans receivable grew $20.1 million, or 14.5%, compared to the same period in the prior year, and $18.2 million, or 12.9%, sequentially.
-
Revenue and Net Revenue
- For the three months ended September 30, 2021, revenue increased $27.3 million, or 15.0%, year over year. Compared to the second quarter of 2021, revenue increased $21.6 million, or 11.5%, primarily driven by growth of $12.9 million, or 10.8% in the U.S., $4.4 million, or 62.6%, in Canada POS Lending and $4.3 million, or 7.0%, in Canada Direct Lending.
- For the three months ended September 30, 2021, net revenue increased $11.3 million, or 8.9%, year over year and decreased $4.0 million, or 2.8%, sequentially. Net revenue declined as compared to the second quarter of 2021, due to higher provision for losses as a result of higher net charge-offs (“NCOs”) and increased delinquencies associated with our loan growth.
- For the nine months ended September 30, 2021, revenue decreased $51.8 million, or 8.0%, compared to the prior year, primarily due to the effect of COVID-19 and two rounds of significant U.S. government stimulus that reduced U.S. loan balances.
- For the nine months ended September 30, 2021, net revenue increased $15.2 million, or 3.6%, year over year as the negative effect on revenue of lower average loan balances was mitigated by significant improvements in credit quality and the effect of changes in loan balances on loan loss provisioning.
-
NCOs and Delinquency Metrics
- Consolidated quarterly NCO rates improved year over year by 240 bps, primarily as a result of the acquisition of Canada POS Lending and loan growth in Canada Direct Lending. Sequentially, consolidated quarterly NCO rates increased 70 bps due to product mix shifts.
- Quarterly NCO rates for U.S. increased 440 bps both year over year and sequentially, primarily driven by customer and origination channel mix shifts and diminishing COVID-19 Impacts.
- Quarterly NCO rates for Canada Direct Lending remained stable year over year and improved 20 bps sequentially.
- Past-due loans increased year over year and sequentially for U.S. and Canada Direct Lending, primarily as a result of government stimulus-related loan repayments in the prior year and first half of 2021.
-
Earnings / Loss per Share
- Diluted Loss per Share from continuing operations was $1.02 for the three months ended September 30, 2021 compared to Diluted Earnings per Share of $0.31 for the three months ended September 30, 2020, primarily due to the loss on our extinguishment of debt from our 8.25% Senior Secured Notes refinancing. Adjusted Diluted Earnings per Share was $0.15 and $0.27 for the three months ended September 30, 2021 and 2020, respectively.
- Diluted Earnings per Share from continuing operations was $2.03 for the nine months ended September 30, 2021 compared to $1.68 for the nine months ended September 30, 2020, primarily due to the Katapult Holdings Inc. (“Katapult”) merger in June 2021. Adjusted Diluted Earnings per Share was $1.24 and $1.58 for the nine months ended September 30, 2021 and 2020, respectively.
-
Other Highlights
- On October 27, 2021, our Board of Directors declared an $0.11 per share dividend payable on November 22, 2021 to stockholders of record as of November 12, 2021.
- On July 30, 2021, we closed $750.0 million of 7.50% Senior Secured Notes due 2028. The proceeds were used: (i) to redeem our 8.25% Senior Secured Notes due 2025, (ii) to pay related fees, expenses, premiums and accrued interest and (iii) for general corporate purposes. This refinancing extended maturities and increased our borrowing capacity while maintaining related borrowing costs at levels under the $690.0 million 8.25% Senior Secured Notes.
- We closed and consolidated 49 U.S. stores, representing approximately a quarter of all U.S. stores, during the second and third quarters of 2021 to better align with changing customer trends, preferences for online transactions and certain states’ regulatory considerations. The impacted locations generated only 8% of our U.S. store revenue in 2020.
- Effective July 1, 2021, Flexiti commenced a 10-year agreement to become the exclusive POS financing partner to LFL, which operates over 300 stores in Canada under multiple banners including Leon’s and The Brick.
- Katapult’s merger with FinServ Acquisition Corp. (“FinServ”) closed on June 9, 2021. We received cash of $146.9 million and recorded a one-time gain of $135.4 million. Our fully diluted ownership of Katapult as of September 30, 2021 was 19.3%, including potential earn-out shares.
- Under the terms of our $50.0 million share repurchase program announced in April 2021, we purchased 1,355,682 shares for $22.9 million through October 29, 2021.
- We completed our acquisition of Flexiti on March 10, 2021.
From the second quarter of 2020 through the first half of 2021, we experienced lower customer demand, good credit performance, increased or accelerated repayments and favorable payment trends as customers were aided by government stimulus programs while periodically enduring pandemic lockdowns (collectively “COVID-19 Impacts”). In the third quarter of 2021, our markets were less affected by COVID-19 Impacts, causing positive growth trends in revenue and receivables.
Consolidated Revenue by Product and Segment
The following table summarizes revenue by product, including revenue we earn from operating as a credit services organization (“CSO”) by charging a customer a fee for arranging an unrelated third party to make a loan to that customer, which we refer to as “CSO fees”, for the period indicated:
|
|
|
Three Months Ended |
||||||||||||||||||||
|
|
|
September 30, 2021 |
|
September 30, 2020 |
||||||||||||||||||
|
(in thousands, unaudited) |
|
U.S. |
Canada |
Canada |
Total |
% of Total |
|
U.S. |
Canada |
Canada |
Total |
% of Total |
||||||||||
|
Revolving LOC |
|
$ 27,377 |
|
$ 40,239 |
|
$ 10,646 |
|
$ 78,262 |
|
37.4 |
% |
|
$ 30,431 |
|
$ 28,280 |
|
$ — |
|
$ 58,711 |
|
32.2 |
% |
|
Installment |
|
101,036 |
|
11,331 |
|
— |
|
112,367 |
|
53.7 |
% |
|
98,946 |
|
10,238 |
|
— |
|
109,184 |
|
60.0 |
% |
|
Ancillary |
|
3,261 |
|
14,620 |
|
770 |
|
18,651 |
|
8.9 |
% |
|
3,471 |
|
10,637 |
|
— |
|
14,108 |
|
7.8 |
% |
|
Total revenue |
|
$ 131,674 |
|
$ 66,190 |
|
$ 11,416 |
|
$ 209,280 |
|
100.0 |
% |
|
$ 132,848 |
|
$ 49,155 |
|
$ — |
|
$ 182,003 |
|
100.0 |
% |
During the three months ended September 30, 2021, total revenue increased $27.3 million, or 15.0%, to $209.3 million, compared to the prior-year period. The year-over-year increase was primarily due to an increase in Canada Direct Lending revenue of $17.0 million, or 34.7%, and $11.4 million of Canada POS Lending revenue. This increase was partially offset by a decrease in U.S. revenue of $1.2 million, or 0.9%, as a result of regulatory changes in California impacting certain Installment products, effective January 1, 2020, and regulatory changes in Virginia impacting Revolving LOC products, effective January 1, 2021. Excluding the impacted California and Virginia loans, total U.S. revenue increased $14.2 million, or 12.9%, for the three months ended September 30, 2021 compared to the three months ended September 30, 2020.
Canada POS Lending revenue includes merchant discount revenue (“MDR”), which is recognized over the life of the underlying loan term. On March 10, 2021, we completed the acquisition of Flexiti. For the three months ended September 30, 2021, Canada POS Lending results were impacted by adjustments that reduced revenue by $1.8 million and net revenue by $4.3 million (“acquisition-related adjustments”). The acquisition included a loan portfolio with a fair value of approximately $196.1 million (“Acquired Portfolio”). The fair value discount of $12.5 million was based on estimated future net cash flows and is recognized in net revenue over the expected life of the Acquired Portfolio (approximately 12 months). This amortization resulted in an increase of $2.5 million for both revenue and loan loss provision for the three months ended September 30, 2021. The Acquired Portfolio also included $14.1 million of unearned MDR and annual and administrative fees, which are not amortized to revenue for the Acquired Portfolio because they do not represent future cash flows. For the third quarter of 2021, Canada POS Lending revenue and net revenue were both lower by $4.3 million (“acquisition-related adjustments”) compared to what would have been reported if the unearned MDR and fees had been recognized over the expected life of the Acquired Portfolio. See “Reconciliation of Net Income from Continuing Operations and Diluted Earnings per Share to Adjusted Net Income and Adjusted Diluted Earnings per Share” for additional detail. The acquisition-related adjustments related to the unearned MDR annual and administrative fees will decline each quarter, until becoming fully amortized by the end of the first quarter of 2022.
The table below recaps acquisition-related adjustments to Flexiti’s revenue and net revenue for the periods indicated:
|
|
Three months ended September 30, 2021 |
|
Nine months ended September 30, 2021 |
||||||||||||||||||||
|
(in thousands, unaudited) |
Canada POS |
|
Acquisition- |
|
Adjusted |
|
Canada POS |
|
Acquisition- |
|
Adjusted |
||||||||||||
|
Interest income |
$ |
7,409 |
|
|
$ |
(2,523) |
|
(1) |
$ |
4,886 |
|
|
$ |
14,414 |
|
|
$ |
(4,115) |
|
(1) |
$ |
10,299 |
|
|
Other revenue |
4,007 |
|
|
4,278 |
|
(2) |
8,285 |
|
|
5,640 |
|
|
9,924 |
|
(2) |
15,564 |
|
||||||
|
Total revenue |
$ |
11,416 |
|
|
$ |
1,755 |
|
|
$ |
13,171 |
|
|
$ |
20,054 |
|
|
$ |
5,809 |
|
|
$ |
25,863 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Provision for losses |
8,285 |
|
|
(2,526) |
|
(1) |
5,759 |
|
|
12,127 |
|
|
(3,945) |
|
(1) |
8,182 |
|
||||||
|
Net revenue |
$ |
3,131 |
|
|
$ |
4,281 |
|
|
$ |
7,412 |
|
|
$ |
7,927 |
|
|
$ |
9,754 |
|
|
$ |
17,681 |
|
|
(1) Acquisition-related adjustments for interest income and provision for losses relate to the amortization of the fair value discount of the Acquired Portfolio. |
|||||||||||||||||||||||
|
(2) Acquisition-related adjustments for other revenue represents the unearned MDR and annual and administrative fees, which were not included in the opening balance sheet as they did not represent future cash flows as of March 10, 2021, and thus, are not amortized to revenue for the Acquired Portfolio. The acquisition-related adjustments related to the unearned MDR and annual and administrative fees will decline each quarter with the Acquired Portfolio and will be fully amortized by the end of the first quarter of 2022. |
|||||||||||||||||||||||
From a product perspective, Revolving LOC revenue for the three months ended September 30, 2021 increased $19.6 million, or 33.3%, year over year, primarily driven by growth in Canada Direct Lending revenue of $12.0 million, or 42.3%, and Canada POS lending of $10.6 million, partially offset by a decline in U.S. revenue of $3.1 million, or 10.0%. Excluding the effects of the Virginia runoff portfolio, U.S. Revolving LOC revenue increased $3.6 million, or 16.2%, for the three months ended September 30, 2021 compared to the prior-year period.
For the three months ended September 30, 2021, Installment revenue increased $3.2 million, or 2.9%, compared to the prior-year period. Excluding the run-off of California Installment loan portfolios, U.S. Installment revenue increased $10.9 million, or 12.7%.
Ancillary revenue increased $4.5 million, or 32.2%, versus the prior-year period, primarily due to the sale of insurance products to Revolving LOC and Installment loan customers in Canada.
The following table summarizes revenue by product, including CSO fees, for the period indicated:
|
|
|
Nine Months Ended |
||||||||||||||||||||
|
|
|
September 30, 2021 |
|
September 30, 2020 |
||||||||||||||||||
|
(in thousands, unaudited) |
|
U.S. |
Canada |
Canada |
Total |
% of Total |
|
U.S. |
Canada |
Canada |
Total |
% of Total |
||||||||||
|
Revolving LOC |
|
$ 78,391 |
|
$ 112,057 |
|
$ 18,585 |
|
$ 209,033 |
|
35.2 |
% |
|
$ 103,338 |
|
$ 83,091 |
|
$ — |
|
$ 186,429 |
|
28.9 |
% |
|
Installment |
|
297,803 |
|
32,319 |
|
— |
|
330,122 |
|
55.6 |
% |
|
377,158 |
|
38,522 |
|
— |
|
415,680 |
|
64.4 |
% |
|
Ancillary |
|
10,766 |
|
42,134 |
|
1,469 |
|
54,369 |
|
9.2 |
% |
|
11,440 |
|
31,769 |
|
— |
|
43,209 |
|
6.7 |
% |
|
Total revenue |
|
$ 386,960 |
|
$ 186,510 |
|
$ 20,054 |
|
$ 593,524 |
|
100.0 |
% |
|
$ 491,936 |
|
$ 153,382 |
|
$ — |
|
$ 645,318 |
|
100.0 |
% |
For the nine months ended September 30, 2021, total revenue declined $51.8 million, or 8.0%, to $593.5 million, compared to the prior year. Geographically, U.S. revenues declined 21.3%, while Canada Direct Lending revenues increased 21.6% due to the continued popularity and growth of Revolving LOC loans in Canada. Excluding the impacted California and Virginia loans, U.S. revenue decreased 11.5% for the nine months ended September 30, 2021 compared to the prior-year period. For the nine months ended September 30, 2021, Canada POS Lending revenue was $20.1 million, inclusive of acquisition-related adjustments which reduced total revenue by $5.8 million.
As described above, certain acquisition-related adjustments related to the amortization of the fair value discount on acquired loans receivable increased Canada POS Lending revenue and net revenue for the nine months ended September 30, 2021 by $4.1 million and $0.1 million, respectively. For the nine months ended September 30, 2021, Canada POS Lending revenue and net revenue were both lower by $9.9 million compared to what would have been reported if the unearned MDR and fees had been recognized over the expected life of the Acquired Portfolio.
From a product perspective, Revolving LOC revenues increased $22.6 million, or 12.1%, compared to the prior year, primarily due to growth in Canada Direct Lending revenue of $29.0 million, or 34.9%, and Canada POS Lending of $18.6 million, partially offset by declines in U.S. revenue of $24.9 million, or 24.1%. Excluding the impacted Virginia portfolio, U.S. Revolving LOC revenue decreased $3.6 million, or 4.8%, for the nine months ended September 30, 2021 compared to the prior-year period.
For the nine months ended September 30, 2021, Installment revenues decreased $85.6 million, or 20.6%, compared to the prior year. Excluding the effects of the impacted California Installment loan portfolios, Installment revenue decreased 13.6%.
Ancillary revenues increased $11.2 million, or 25.8%, versus the prior year from the sale of insurance products to Revolving LOC and Installment loan customers in Canada.
The following table presents online revenue and online transaction compositions, including CSO fees, of the products and services that we currently offer within the U.S. and Canada Direct Lending segments:
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
|
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||
|
Online revenue as a percentage of consolidated revenue |
|
48.0 |
% |
|
48.8 |
% |
|
48.8 |
% |
|
47.8 |
% |
|
Online transactions as a percentage of consolidated transactions |
|
61.0 |
% |
|
57.2 |
% |
|
60.5 |
% |
|
53.4 |
% |
Online revenue as a percentage of consolidated revenue increased during the three and nine months ended September 30, 2021, as a result of our store closures during the second and third quarters of 2021, as well as the continued transition of customers to our online channel.
Consolidated Loans Receivable
The following table reconciles Company Owned gross loans receivable, a GAAP-basis balance sheet measure, to Gross combined loans receivable, a non-GAAP measure(1). Gross combined loans receivable includes loans originated by third-party lenders through CSO programs, which are not included in the Condensed Consolidated Financial Statements but from which we earn revenue by providing a guarantee to the unaffiliated lender.
|
|
|
As of |
|||||||||||||
|
(in thousands, unaudited) |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|||||
|
U.S. |
|
|
|
|
|
|
|
|
|
|
|||||
|
Revolving LOC |
|
$ 51,196 |
|
|
$ 47,277 |
|
|
$ 43,387 |
|
|
$ 55,561 |
|
|
$ 56,727 |
|
|
Installment – Company Owned |
|
137,987 |
|
|
139,234 |
|
|
142,396 |
|
|
167,890 |
|
|
148,569 |
|
|
Canada Direct Lending |
|
|
|
|
|
|
|
|
|
|
|||||
|
Revolving LOC |
|
366,509 |
|
|
337,700 |
|
|
319,307 |
|
|
303,323 |
|
|
265,507 |
|
|
Installment |
|
24,315 |
|
|
23,564 |
|
|
24,385 |
|
|
26,948 |
|
|
26,639 |
|
|
Canada POS Lending |
|
|
|
|
|
|
|
|
|
|
|||||
|
Revolving LOC |
|
302,349 |
|
|
221,453 |
|
|
201,539 |
|
|
— |
|
|
— |
|
|
Company Owned gross loans receivable |
|
$ 882,356 |
|
|
$ 769,228 |
|
|
$ 731,014 |
|
|
$ 553,722 |
|
|
$ 497,442 |
|
|
Gross loans receivable Guaranteed by the Company |
|
43,422 |
|
|
37,093 |
|
|
32,439 |
|
|
44,105 |
|
|
39,768 |
|
|
Gross combined loans receivable (1) |
|
$ 925,778 |
|
|
$ 806,321 |
|
|
$ 763,453 |
|
|
$ 597,827 |
|
|
$ 537,210 |
|
|
(1) See “Non-GAAP Financial Measures” at the end of this release for definition and more information. |
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Gross combined loans receivable increased $388.6 million, or 72.3%, to $925.8 million as of September 30, 2021, from $537.2 million as of September 30, 2020. The increase was driven by Canada Direct Lending growth of $98.7 million, or 33.8%, and Canada POS Lending gross loans receivables, as a result of our acquisition of Flexiti in March 2021, of $302.3 million. Excluding Canada POS Lending loan balances, gross combined loans receivable increased $86.2 million, or 16.0% year over year. U.S. gross combined loans receivable declined $12.5 million, or 5.1%, due to (i) COVID-19 Impacts, (ii) the runoff of California Installment and Virginia Revolving LOC loans as a result of regulatory impacts, and (iii) additional government stimulus in the first half of 2021. Excluding the California and Virginia runoff portfolios, U.S. gross combined loans receivable grew 14.9%.
Sequentially, gross combined loans receivable increased $119.5 million, or 14.8%, as consumer demand increased. Geographically, U.S. and Canada grew sequentially by 4.0% and 19.0%, respectively, primarily driven by Canada POS Lending growth of $80.
Contacts
Investor Relations:
Roger Dean
Executive Vice President and Chief Financial Officer
Phone: 844-200-0342
Email: IR@curo.com
Or
Financial Profiles, Inc.
Curo@finprofiles.com