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Atlanticus Reports Fourth Quarter and Full Year 2024 Financial Results

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Atlanticus Holdings (NASDAQ: ATLC) reported strong Q4 2024 financial results with notable growth across key metrics. The company achieved a 28.0% net margin growth year-over-year, serving 3.7 million accounts.

Key Q4 2024 highlights include:

  • Managed receivables up 13.0% to $2.7 billion
  • Total operating revenue increased 14.4% to $353.2 million
  • Return on average equity of 22.3%
  • Purchase volume of $660.2 million
  • Net income of $26.3 million ($1.42 per diluted share)

The company's private label credit receivables grew by $292.4 million, while general purpose credit card receivables increased by $21.7 million in 2024. Despite various market challenges, Atlanticus maintained strong growth metrics over the past 5 years, with managed receivables growing at a 24% CAGR, revenue at 31%, and earnings at 29%.

Atlanticus Holdings (NASDAQ: ATLC) ha riportato risultati finanziari solidi per il quarto trimestre del 2024, con una crescita notevole in tutti i principali indicatori. L'azienda ha raggiunto una crescita del margine netto del 28,0% rispetto all'anno precedente, servendo 3,7 milioni di conti.

I punti salienti del quarto trimestre del 2024 includono:

  • Crediti gestiti aumentati del 13,0% a 2,7 miliardi di dollari
  • Il fatturato operativo totale è aumentato del 14,4% a 353,2 milioni di dollari
  • Rendimento medio del capitale proprio del 22,3%
  • Volume degli acquisti di 660,2 milioni di dollari
  • Utile netto di 26,3 milioni di dollari (1,42 dollari per azione diluita)

I crediti al consumo a marchio privato dell'azienda sono cresciuti di 292,4 milioni di dollari, mentre i crediti delle carte di credito a uso generale sono aumentati di 21,7 milioni di dollari nel 2024. Nonostante le varie sfide del mercato, Atlanticus ha mantenuto solidi indicatori di crescita negli ultimi 5 anni, con crediti gestiti in crescita a un CAGR del 24%, ricavi al 31% e utili al 29%.

Atlanticus Holdings (NASDAQ: ATLC) reportó resultados financieros sólidos para el cuarto trimestre de 2024, con un notable crecimiento en todos los indicadores clave. La compañía logró un crecimiento del margen neto del 28,0% interanual, atendiendo a 3,7 millones de cuentas.

Los aspectos destacados del cuarto trimestre de 2024 incluyen:

  • Recibos gestionados aumentados en un 13,0% a 2,7 mil millones de dólares
  • Los ingresos operativos totales aumentaron un 14,4% a 353,2 millones de dólares
  • Retorno sobre el capital promedio del 22,3%
  • Volumen de compras de 660,2 millones de dólares
  • Ingreso neto de 26,3 millones de dólares (1,42 dólares por acción diluida)

Los créditos de tarjetas de crédito de marca privada de la empresa crecieron en 292,4 millones de dólares, mientras que los créditos de tarjetas de crédito de uso general aumentaron en 21,7 millones de dólares en 2024. A pesar de diversos desafíos del mercado, Atlanticus mantuvo sólidos indicadores de crecimiento durante los últimos 5 años, con créditos gestionados creciendo a un CAGR del 24%, ingresos al 31% y ganancias al 29%.

Atlanticus Holdings (NASDAQ: ATLC)는 2024년 4분기 재무 결과가 강력하게 나타났으며, 주요 지표에서 주목할 만한 성장을 기록했습니다. 회사는 3.7백만 계좌를 관리하며 연간 28.0%의 순이익률 성장을 달성했습니다.

2024년 4분기의 주요 하이라이트는 다음과 같습니다:

  • 관리된 채권이 13.0% 증가하여 27억 달러에 달함
  • 총 운영 수익이 14.4% 증가하여 3억 5,320만 달러에 도달함
  • 평균 자본 수익률 22.3%
  • 구매량 6억 6,020만 달러
  • 순이익 2,630만 달러 (희석 주당 1.42 달러)

회사의 프라이빗 라벨 신용 채권은 2억 9,240만 달러 증가했으며, 일반 용도의 신용 카드 채권은 2,170만 달러 증가했습니다. 다양한 시장의 도전에도 불구하고, Atlanticus는 지난 5년 동안 관리된 채권이 연평균 24% 성장, 수익이 31%, 이익이 29%로 강력한 성장 지표를 유지했습니다.

Atlanticus Holdings (NASDAQ: ATLC) a annoncé de solides résultats financiers pour le quatrième trimestre 2024, avec une croissance notable dans tous les indicateurs clés. L'entreprise a atteint une croissance de la marge nette de 28,0% d'une année sur l'autre, servant 3,7 millions de comptes.

Les points forts du quatrième trimestre 2024 incluent:

  • Créances gérées en hausse de 13,0% à 2,7 milliards de dollars
  • Le chiffre d'affaires total a augmenté de 14,4% à 353,2 millions de dollars
  • Retour sur fonds propres moyen de 22,3%
  • Volume d'achats de 660,2 millions de dollars
  • Revenu net de 26,3 millions de dollars (1,42 dollar par action diluée)

Les créances de crédit à marque privée de l'entreprise ont augmenté de 292,4 millions de dollars, tandis que les créances de cartes de crédit à usage général ont augmenté de 21,7 millions de dollars en 2024. Malgré divers défis du marché, Atlanticus a maintenu de solides indicateurs de croissance au cours des 5 dernières années, avec des créances gérées en croissance à un TCAC de 24%, des revenus à 31% et des bénéfices à 29%.

Atlanticus Holdings (NASDAQ: ATLC) hat für das vierte Quartal 2024 starke finanzielle Ergebnisse gemeldet, mit bemerkenswertem Wachstum in allen wichtigen Kennzahlen. Das Unternehmen erzielte ein Wachstum der Nettomarge von 28,0% im Jahresvergleich und bediente 3,7 Millionen Konten.

Wichtige Höhepunkte des vierten Quartals 2024 umfassen:

  • Verwaltete Forderungen stiegen um 13,0% auf 2,7 Milliarden Dollar
  • Der gesamte Betriebserlös erhöhte sich um 14,4% auf 353,2 Millionen Dollar
  • Rendite des durchschnittlichen Eigenkapitals von 22,3%
  • Kaufvolumen von 660,2 Millionen Dollar
  • Nettoeinkommen von 26,3 Millionen Dollar (1,42 Dollar pro verwässerter Aktie)

Die Privatkreditforderungen des Unternehmens wuchsen um 292,4 Millionen Dollar, während die allgemeinen Kreditkartenforderungen im Jahr 2024 um 21,7 Millionen Dollar zunahmen. Trotz verschiedener Marktherausforderungen hielt Atlanticus in den letzten 5 Jahren starke Wachstumskennzahlen aufrecht, mit verwalteten Forderungen, die mit einer CAGR von 24% wuchsen, Einnahmen bei 31% und Gewinnen bei 29%.

Positive
  • Net margin growth of 28.0% year-over-year
  • 13.0% increase in managed receivables to $2.7 billion
  • 14.4% growth in operating revenue to $353.2 million
  • Strong return on equity at 22.3%
  • 31.7% increase in net income to $26.3 million
  • 5-year CAGR: 24% for managed receivables, 31% for revenue, 29% for earnings
Negative
  • Higher interest expenses ($44.7M vs $32.6M YoY) due to increased borrowing costs
  • 27.0% increase in total operating expenses
  • Minimal share repurchase activity (only 925 shares)
  • Expected continued increase in operating expenses for 2025

Insights

Atlanticus's Q4 and full-year 2024 results demonstrate robust financial performance across key metrics. The 28.0% net margin growth and 31.7% increase in net income to $26.3 million highlight exceptional profitability expansion that significantly outpaces asset growth. With managed receivables up 13.0% to $2.7 billion and total operating revenue increasing 14.4% to $353.2 million, Atlanticus is efficiently monetizing its growing customer base of 3.7 million accounts.

Particularly impressive is the company's 22.3% return on average equity, demonstrating capital-efficient growth in an industry where double-digit ROE is considered strong. The acquisition of 368,000 new accounts in Q4 alone indicates continued market share gains and effective customer acquisition strategies despite acknowledged competitive pressures.

The five-year performance metrics are exceptional - compound annual growth rates of 24% for managed receivables, 31% for revenue, and 29% for earnings while maintaining ROE above 20%. This consistency through various economic environments demonstrates the resilience of Atlanticus's business model.

Interest expense growth to $44.7 million from $32.6 million YoY warrants monitoring, as higher borrowing costs could eventually pressure margins if not offset by continued revenue growth or operational efficiencies. However, the company appears to be managing its debt profile effectively with notes payable increasing to $2.16 billion as December 31, 2024, from $1.80 billion year-over-year, proportionate with receivables growth.

Atlanticus's strategy execution in 2024 demonstrates remarkable agility in navigating multiple market disruptions. Most financial services companies would struggle to maintain growth amid what management describes as "a pandemic, credit score inflation, rapid increases in inflation, recessionary pressure, unforeseen regulatory changes, and an irrational competitive environment." Yet Atlanticus not only survived but thrived, suggesting their risk management frameworks and adaptable business model provide sustainable competitive advantages.

The company's private label credit business shows particular strength with $292.4 million in receivables growth, compared to just $21.7 million growth in general purpose cards. This strategic emphasis on private label partnerships creates deeper merchant relationships and likely delivers higher customer lifetime value than traditional credit cards. The acknowledgment that some merchant partners face growth challenges while others are expanding demonstrates effective portfolio diversification.

Management's forward-looking statements indicate confidence in continued above-market growth while maintaining their disciplined return targets. The focus on technological investment, automation, and risk underwriting capabilities suggests they're building infrastructure to scale efficiently. Their mention of "significant reductions in servicing costs per account" from scale economies and automation indicates a clear path to improving unit economics as they grow.

Planned increases in marketing expenditures for 2025, coupled with tightened underwriting standards targeting higher FICO consumers, signals a strategic pivot toward slightly lower-risk, lower-yield customers. This balanced approach to growth preserves profitability while potentially reducing volatility in their credit performance.

Fourth Quarter 2024 net margin growth of 28.0% over prior year, with 3.7 million accounts served (1)

ATLANTA, March 13, 2025 (GLOBE NEWSWIRE) -- Atlanticus Holdings Corporation (NASDAQ: ATLC) (Atlanticus, the Company, we, our or us), a financial technology company that enables its bank, retail and healthcare partners to offer more inclusive financial services to millions of everyday Americans, today announced its financial results for the fourth quarter and full year ended December 31, 2024. An accompanying earnings presentation is available in the Investors section of the Company’s website at www.atlanticus.com or by clicking here.

Financial and Operating Highlights

Fourth Quarter 2024 Highlights (all comparisons to the Fourth Quarter 2023)

  • Managed receivables2 increased 13.0% to $2.7 billion
  • Total operating revenue and other income increased 14.4% to $353.2 million
  • Return on average equity of 22.3 %3
  • Purchase volume of $660.2 million
  • Over 368,000 new accounts served during the quarter, 3.7 million total accounts served1
  • Net income attributable to common shareholders of $26.3 million, or $1.42 per diluted common share

1) In our calculation of total accounts served, we include all accounts with account activity and accounts that have open lines of credit at the end of the referenced period.
2) Managed receivables is a non-GAAP financial measure and excludes the results of our Auto Finance receivables. See Calculation of Non-GAAP Financial Measures for important additional information.
3) Return on average equity is calculated using Net income attributable to common shareholders as the numerator and the average of Total equity as of December 31, 2024 and September 30, 2024 as the denominator, annualized.


Management Commentary

Jeff Howard, President and Chief Executive Officer at Atlanticus stated, “We are pleased to have once again achieved our return on capital targets while prudently growing our business. The past few years have had numerous disruptions – a pandemic, credit score inflation resulting from trillions of dollars of government stimulus, rapid increases in inflation, recessionary pressure on everyday Americans, an unforeseen potential regulatory change and an irrational competitive environment brought on by numerous new entrants into our lines of business. I am incredibly proud of the way the Atlanticus team has managed through this tumultuous period. Despite these challenges, over the last 5 years we have grown managed receivables on a compounded annual growth rate of 24%, revenue by 31%, and earnings by 29%, all while maintaining a return on common equity capital of over 20%.”

“Although we continue to manage through lingering effects from these challenges, we are excited about what lies ahead. While our primary focus is on achieving at or above targeted returns on our capital, we see opportunity to continue achieving above market rates of growth across our business.”

Financial ResultsFor the Three Months Ended December 31,   For the Year Ended December 31,  
($ in thousands, except per share data) 2024   2023  % Change  2024   2023  % Change
Total operating revenue and other income$353,186  $308,600  14.4% $1,309,955  $1,155,246  13.4%
Other non-operating income 305   490  nm  1,489   630  nm
Total revenue and other income 353,491   309,090  14.4%  1,311,444   1,155,876  13.5%
Interest expense (44,670)   (32,619)  36.9%  (160,173)   (109,342)  46.5%
Provision for credit losses (7,045)   (601)  nm  (16,368)   (2,152)  nm
Changes in fair value of loans (184,310)   (184,072)  nm  (733,471)   (689,577)  6.4%
Net margin$117,466  $91,798  28.0% $401,432  $354,805  13.1%
Total operating expenses$77,599  $61,093  27.0% $262,855  $226,247  16.2%
Net income$30,971  $26,273  17.9% $110,106  $101,954  8.0%
Net income attributable to controlling interests$31,303  $26,304  19.0% $111,296  $102,845  8.2%
Preferred stock and preferred unit dividends and discount accretion$(5,012)  $(6,341)  nm $(23,928)  $(25,198)  nm
Net income attributable to common shareholders$26,291  $19,963  31.7% $87,368  $77,647  12.5%
Net income attributable to common shareholders per common share—basic$1.77  $1.37  29.9% $5.92  $5.35  10.7%
Net income attributable to common shareholders per common share—diluted$1.42  $1.10  29.1% $4.77  $4.24  12.5%
 
*nm = not meaningful


Managed Receivables

Managed receivables increased 13.0% to $2.7 billion with over $313.5 million in net receivables growth from December 31, 2023, driven by growth both in the private label credit and general purpose credit card products offered by our bank partners. Total accounts served increased 4.1% to 3.7 million. Ongoing purchases by customers of our existing retail partners and new private label credit retail partners helped grow our private label credit receivables by $292.4 million in the twelve months ended December 31, 2024. Our general purpose credit card receivables grew by $21.7 million during the twelve months ended December 31, 2024. While some of our merchant partners continue to face year-over-year growth challenges, others are benefiting from continued consumer spending and a growing economy and have expanded their relationship with us. Our general purpose credit card portfolio continues to experience modest growth in total managed receivables. We expect continued growth in 2025 in our managed receivables when compared to prior periods in 2024.

Total Operating Revenue and Other Income

Total operating revenue and other income consists of: 1) interest income, finance charges and late fees on consumer loans, 2) other fees on credit products including annual and merchant fees and 3) interchange and servicing income on loan portfolios and other customer related fees. 

We are currently experiencing continued period-over-period growth in private label credit and general purpose credit card receivables — growth that we expect to result in net period-over-period growth in our total interest income and related fees for these operations throughout 2025. Future periods’ growth is dependent on the addition of new retail partners to expand the reach of private label credit operations as well as growth within existing partnerships and the level of marketing investment for the general purpose credit card operations.

During the quarter ended December 31, 2024, total operating revenue and other income increased 14.4% to $353.2 million. General purpose credit card receivables tend to have higher total yields than private label credit receivables (and corresponding higher charge off rates). As a result, in periods where we have declines in rates of growth of these general purpose credit card receivables, as was noted in 2024 (relative to growth in private label credit card receivables), we expect to have slightly lower total managed yield ratios. We currently expect increases in the acquisition of receivables, and correspondingly higher period-over-period operating revenue for 2025. This growth includes an expected seasonal shift in our mix of acquired private label receivables to higher FICO receivables that have lower gross yields (and correspondingly lower charge-off expectations) in the third quarter each year, which may result in marginally lower managed yield ratios when compared to the corresponding periods in 2024.

Interest Expense

Interest expense was $44.7 million for the quarter ended December 31, 2024, compared to $32.6 million for the quarter ended December 31, 2023. The higher expenses were primarily driven by the increases in outstanding debt in proportion to growth in our receivables coupled with increases in the cost of borrowing.

Outstanding notes payable, net of unamortized debt issuance costs and discounts, associated with our private label credit and general purpose credit card platform increased to $2,157.8 million as of December 31, 2024 from $1,796.0 million as of December 31, 2023. The majority of this increase in outstanding debt relates to the addition of multiple credit facilities in 2023 and 2024. Recent increases in the effective interest rates on debt have increased our interest expense as we have raised additional capital (or replaced existing facilities) over the last two years. We anticipate additional debt financing over the next few quarters as we continue to grow coupled with higher effective interest rates on new debt compared to rates on maturing debt. As such, we expect our quarterly interest expense for these operations to increase compared to prior periods.

Changes in Fair Value of Loans

Changes in fair value of loans increased to $184.3 million for the quarter ended December 31, 2024 compared to $184.1 million for the quarter ended December 31, 2023. This increase was largely driven by growth in our acquisition and relative mix of receivables, offset by improvements in the fair value assessment for receivables due to improvements in the underlying performance in the form of improved delinquencies and improved net returns, as well as the indefinite extension in assumed implementation dates of recent CFPB rules limiting late fees charged to consumers.

We include asset performance degradation in our forecasts to reflect both changes in assumed asset level economics and the possibility of delinquency rates increasing in the near term (and the corresponding increase in charge-offs and decrease in payments) above the level that current trends would suggest. Based on observed asset performance, implementation of mitigants to a potential change in late fee billings and general improvements in U.S. economic expectations due to the improved inflation environment, some expected degradation has been removed in recent periods. Tightened underwriting standards shifted new receivable acquisitions to consumers at the higher end of the FICO bands in which our bank partners participate, presumably resulting in improved overall credit performance of our acquired receivables. When coupled with those existing assets negatively impacted by inflation gradually becoming a smaller percentage of the outstanding portfolio, we expect to see overall improvements in the measured fair value of our portfolios of acquired receivables.

Total Operating Expenses

Total operating expenses increased 27.0% in the quarter when compared to the same period in 2023, driven primarily by increases in variable servicing costs associated with growth in our receivables and costs associated with the implementation of product, policy and pricing changes. In addition, we experienced growth in both the number of employees and inflationary compensation pressure. Certain other nonrecurring accounting and legal expenditures also contributed to increases for the quarter.

We expect some continued increase in salaries and benefits in 2025 compared to corresponding periods in 2024 as we continue to invest in technology, risk underwriting and compliance and as a result we expect to increase our number of employees.

We expect increased levels of expenditures associated with anticipated growth in private label credit and general purpose credit card operations. These expenses will primarily relate to the variable costs of marketing efforts and card and loan servicing expenses associated with new receivable acquisitions. Offsetting a portion of this increase are significant reductions in our servicing costs per account, resulting from the realization of greater economies of scale and increased use of automation as our receivables have grown.

In addition, as we continue to adjust our underwriting standards to reflect changes in fee and finance assumptions on new receivables, and allow for overall increases in the cost to successfully market to consumers, we expect period over period marketing costs for 2025 to increase relative to those experienced in 2024, although the frequency and timing of increased marketing efforts could vary and are dependent on macroeconomic factors such as national unemployment rates and federal funds rates.

Net Income Attributable to Common Shareholders

Net income attributable to common shareholders increased 31.7% to $26.3 million, or $1.42 per diluted share for the quarter ended December 31, 2024.

Share Repurchases

We repurchased and retired 925 shares of our common stock at an aggregate cost of $0.03 million, in the quarter ended December 31, 2024.

We will continue to evaluate the best use of our capital to increase shareholder value over time.

About Atlanticus Holdings Corporation

Empowering Better Financial Outcomes for Everyday Americans

Atlanticus™ technology enables bank, retail, and healthcare partners to offer more inclusive financial services to everyday Americans through the use of proprietary technology and analytics. We apply the experience gained and infrastructure built from servicing over 20 million customers and over $40 billion in consumer loans over more than 25 years of operating history to support lenders that originate a range of consumer loan products. These products include retail and healthcare private label credit and general purpose credit cards marketed through our omnichannel platform, including retail point-of-sale, healthcare point-of-care, direct mail solicitation, internet-based marketing, and partnerships with third parties. Additionally, through our Auto Finance subsidiary, Atlanticus serves the individual needs of automotive dealers and automotive non-prime financial organizations with multiple financing and service programs.

Forward-Looking Statements

This press release contains forward-looking statements that reflect the Company's current views with respect to, among other things, its business, long-term growth plans and opportunities, operations, financial performance, revenue, amount and pace of growth of managed receivables, mix of receivables, underwriting approach, total interest income and related fees and charges, the new CFPB late fee rules and our response thereto, debt financing, liquidity, interest rates, interest expense, operating expense, marketing efforts, fair value of receivables, consumer spending, and the economy. You generally can identify these statements by the use of words such as outlook, potential, continue, may, seek, approximately, predict, believe, expect, plan, intend, estimate or anticipate and similar expressions or the negative versions of these words or comparable words, as well as future or conditional verbs such as will, should, would, likely and could. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those included in the forward-looking statements. These risks and uncertainties include those risks described in the Company's filings with the Securities and Exchange Commission and include, but are not limited to, bank partners, merchant partners, consumers, loan demand, the capital markets, labor availability, supply chains and the economy in general; the Company's ability to retain existing, and attract new, merchant partners and funding sources; changes in market interest rates; increases in loan delinquencies; its ability to operate successfully in a highly regulated industry; the outcome of litigation and regulatory matters; the effect of management changes; cyberattacks and security vulnerabilities in its products and services; and the Company's ability to compete successfully in highly competitive markets. The forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, the Company disclaims any obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. In light of these risks and uncertainties, there is no assurance that the events or results suggested by the forward-looking statements will in fact occur, and you should not place undue reliance on these forward-looking statements.

Contact:
Investor Relations
(770) 828-2000
investors@atlanticus.com

 
 
Atlanticus Holdings Corporation and Subsidiaries
Consolidated Balance Sheets
(Dollars in thousands)
 December 31, December 31,
  2024   2023 
Assets   
Unrestricted cash and cash equivalents (including $140.2 million and $158.0 million associated with variable interest entities at December 31, 2024 and December 31, 2023, respectively) $375,416   $339,338 
Restricted cash and cash equivalents (including $98.8 million and $20.5 million associated with variable interest entities at December 31, 2024 and December 31, 2023, respectively) 124,220   44,315 
Loans at fair value (including $2,542.9 million and $2,128.6 million associated with variable interest entities at December 31, 2024 and December 31, 2023, respectively) 2,630,274   2,173,759 
Loans at amortized cost, net (including $4.9 million and $1.8 million of allowance for credit losses at December 31, 2024 and December 31, 2023, respectively; and $19.8 million and $17.9 million of deferred revenue at December 31, 2024 and December 31, 2023, respectively) 84,332   98,425 
Property at cost, net of depreciation 10,519   11,445 
Operating lease right-of-use assets 13,878   11,310 
Prepaid expenses and other assets 32,068   27,853 
Total assets $3,270,707   $2,706,445 
    
Liabilities   
Accounts payable and accrued expenses $72,088   $61,634 
Operating lease liabilities 24,188   20,180 
Notes payable, net (including $2,128.0 million and $1,795.9 million associated with variable interest entities at December 31, 2024 and December 31, 2023, respectively) 2,199,448   1,861,685 
Senior notes, net 281,552   144,453 
Income tax liability 114,068   85,826 
Total liabilities 2,691,344   2,173,778 
    
Commitments and contingencies    
Preferred stock, no par value, 10,000,000 shares authorized:   
Series A preferred stock, 400,000 shares issued and outstanding (liquidation preference - $40.0 million) at December 31, 2024 and December 31, 2(1) 40,000   40,000 
Class B preferred units issued to noncontrolling interests 50,000   100,250 
    
Shareholders' Equity   
Series B preferred stock, no par value, 3,301,179 shares issued and outstanding at December 31, 2024 (liquidation preference - $82.5 million); 3,256,561 shares issued and outstanding at December 31, 2023 (liquidation preference - $81.4 million) (1)     
Common stock, no par value, 150,000,000 shares authorized: 14,904,192 and 14,603,563 shares issued and outstanding at December 31, 2024 and December 31, 2023, respectively     
Paid-in capital 98,278   87,415 
Retained earnings 394,628   307,260 
Total shareholders’ equity attributable to Atlanticus Holdings Corporation 492,906   394,675 
Noncontrolling interests (3,543)   (2,258) 
Total equity 489,363   392,417 
Total liabilities, shareholders' equity and temporary equity $3,270,707   $2,706,445 
    
(1) Both the Series A preferred stock and the Series B preferred stock have no par value and are part of the same aggregate 10,000,000 shares authorized.


 
Atlanticus Holdings Corporation and Subsidiaries
Consolidated Statements of Income
(Dollars in thousands, except per share data)
 
 For the Three Months Ended December 31, For the Year Ended December 31,
      
  2024   2023   2024   2023 
Revenue and other income:       
Consumer loans, including past due fees $251,702   $224,698   $979,814   $879,123 
Fees and related income on earning assets 83,788   71,691   269,771   238,775 
Other revenue 17,696   12,211   60,370   37,348 
Total operating revenue and other income 353,186   308,600   1,309,955   1,155,246 
Other non-operating income 305   490   1,489   630 
Total revenue and other income 353,491   309,090   1,311,444   1,155,876 
        
Interest expense (44,670)   (32,619)   (160,173)   (109,342) 
Provision for credit losses (7,045)   (601)   (16,368)   (2,152) 
Changes in fair value of loans (184,310)   (184,072)   (733,471)   (689,577) 
Net margin 117,466   91,798   401,432   354,805 
        
Operating expenses:       
Salaries and benefits (12,559)   (11,313)   (50,143)   (43,906) 
Card and loan servicing (35,811)   (26,607)   (118,400)   (100,620) 
Marketing and solicitation (17,338)   (14,930)   (56,186)   (52,421) 
Depreciation (752)   (652)   (2,715)   (2,560) 
Other (11,139)   (7,591)   (35,411)   (26,740) 
Total operating expenses (77,599)   (61,093)   (262,855)   (226,247) 
Income before income taxes 39,867   30,705   138,577   128,558 
Income tax expense (8,896)   (4,432)   (28,471)   (26,604) 
Net income 30,971   26,273   110,106   101,954 
Net loss attributable to noncontrolling interests 332   31   1,190   891 
Net income attributable to controlling interests 31,303   26,304   111,296   102,845 
Preferred stock and preferred unit dividends and discount accretion (5,012)   (6,341)   (23,928)   (25,198) 
Net income attributable to common shareholders $26,291   $19,963   $87,368   $77,647 
        
Net income attributable to common shareholders per common share—basic $1.77   $1.37   $5.92   $5.35 
Net income attributable to common shareholders per common share—diluted $1.42   $1.10   $4.77   $4.24 


Additional Information

Additional trends and data with respect to our private label credit and general purpose credit card receivables can be found in our latest Form 10-K filing with the Securities and Exchange Commission under Management's Discussion and Analysis of Financial Condition and Results of Operations.

Calculation of Non-GAAP Financial Measures

This press release presents information about managed receivables, which is a non-GAAP financial measure provided as a supplement to the results provided in accordance with accounting principles generally accepted in the United States of America (GAAP). In addition to financial measures presented in accordance with GAAP, we present managed receivables, total managed yield, combined principal net charge-offs, and fair value to total managed receivables ratio, all of which are non-GAAP financial measures. These non-GAAP financial measures aid in the evaluation of the performance of our credit portfolios, including our risk management, servicing and collection activities and our valuation of purchased receivables. The credit performance of our managed receivables provides information concerning the quality of loan originations and the related credit risks inherent with the portfolios. Management relies heavily upon financial data and results prepared on the managed basis in order to manage our business, make planning decisions, evaluate our performance and allocate resources.

These non-GAAP financial measures are presented for supplemental informational purposes only. These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation from, or as a substitute for, GAAP financial measures. These non-GAAP financial measures may differ from the non-GAAP financial measures used by other companies. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures or the calculation of the non-GAAP financial measures are provided below for each of the fiscal periods indicated.

These non-GAAP financial measures include only the performance of those receivables underlying consolidated subsidiaries (for receivables carried at amortized cost basis and fair value) and exclude the performance of receivables held by our former equity method investee. As the receivables underlying our former equity method investee reflect a small and diminishing portion of our overall receivables base, we do not believe their inclusion or exclusion in the overall results is material. Additionally, we calculate average managed receivables based on the quarter-end balances.

The comparison of non-GAAP managed receivables to our GAAP financial statements requires an understanding that managed receivables reflect the face value of loans, interest and fees receivable without any consideration for potential loan losses or other adjustments to reflect fair value.

A reconciliation of Loans at fair value to Total managed receivables is as follows:

 At or for the Three Months Ended
 2024 2023
(in Millions)
 Dec. 31
  Sep. 30
  Jun. 30
  Mar. 31
  Dec. 31
  Sep. 30
  Jun. 30
  Mar. 31
 
Loans at fair value $2,630.3  $2,511.6  $2,277.4  $2,150.6  $2,173.8  $2,050.0  $1,916.1  $1,795.6 
Fair value mark against receivable (1) 94.5  142.5  137.7  167.5  237.5  265.2  257.9  260.1 
Total managed receivables (2) $2,724.8  $2,654.1  $2,415.1  $2,318.1  $2,411.3  $2,315.2  $2,174.0  $2,055.7 
         
Fair value to Total managed receivables ratio (3) 96.5%  94.6%  94.3%  92.8%  90.2%  88.5%  88.1%  87.3% 
 
(1) The fair value mark against receivables reflects the difference between the face value of a receivable and the net present value of the expected cash flows associated with that receivable.
 
(2) Total managed receivables are equal to the aggregate unpaid gross balance of loans carried at fair value.
 
(3) The Fair value to Total managed receivables ratio is calculated using Loans at fair value as the numerator, and Total managed receivables as the denominator.

 


A reconciliation of our operating revenues, net of finance and fee charge-offs, to comparable amounts used in our calculation of Total managed yield is as follows:

  At or for the Three Months Ended
  2024
2023
(in Millions)
  Dec. 31
  Sep. 30
  Jun. 30
  Mar. 31
  Dec. 31
  Sep. 30
  Jun. 30
  Mar. 31
 
Consumer loans, including past due fees  $242.1  $245.3  $232.1  $220.0  $214.6  $214.6  $210.3  $200.5 
Fees and related income on earning assets  83.8  78.5  59.5  47.9  71.7  59.8  62.9  44.3 
Other revenue  17.5  16.8  13.6  11.7  12.0  10.2  7.6  6.7 
Total operating revenue and other income - CaaS Segment  343.4  340.6  305.2  279.6  298.3  284.6  280.8  251.5 
Adjustments due to acceleration of merchant fee discount amortization under fair value accounting  0.7  (15.1)  (12.6)  4.0  6.5  (6.8)  (10.6)  (0.5) 
Adjustments due to acceleration of annual fees recognition under fair value accounting  (10.5)  (8.0)  1.1  10.1  (12.6)  (3.1)  (9.8)  7.3 
Removal of finance charge-offs  (64.9)  (60.6)  (62.9)  (63.7)  (59.5)  (47.1)  (54.2)  (61.7) 
Total managed yield  $268.7  $256.9  $230.8  $230.0  $232.7  $227.6  $206.2  $196.6 


The calculation of Combined principal net charge-offs is as follows:

 At or for the Three Months Ended
  2024  2023 
(in Millions)
 Dec. 31
  Sep. 30
  Jun. 30
  Mar. 31
  Dec. 31
  Sep. 30
  Jun. 30
  Mar. 31
 
Charge-offs on loans at fair value $213.1  $201.5  $217.0  $231.7  $215.2  $173.5  $180.0  $191.9 
Finance charge-offs (1) (64.9)  (60.6)  (62.9)  (63.7)  (59.5)  (47.1)  (54.2)  (61.7) 
Combined principal net charge-offs $148.2  $140.9  $154.1  $168.0  $155.7  $126.4  $125.8  $130.2 
 
(1) Finance charge-offs are included as a component of our Changes in fair value of loans in the condensed consolidated statements of income.
 

FAQ

What was Atlanticus (ATLC) Q4 2024 earnings per share?

ATLC reported earnings of $1.42 per diluted share in Q4 2024.

How much did Atlanticus (ATLC) managed receivables grow in Q4 2024?

Managed receivables grew 13.0% to $2.7 billion compared to Q4 2023.

What was ATLC's return on equity in Q4 2024?

Atlanticus achieved a return on average equity of 22.3% in Q4 2024.

How many accounts does Atlanticus (ATLC) serve as of Q4 2024?

Atlanticus served 3.7 million total accounts, with over 368,000 new accounts added during Q4 2024.

What was ATLC's revenue growth in Q4 2024?

Total operating revenue increased 14.4% to $353.2 million compared to Q4 2023.
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