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Enova Reports Third Quarter 2023 Results and New $300 Million Share Repurchase Program

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Enova International reports strong financial results for Q3 2023 with record revenue of $551 million and diluted earnings per share of $1.29. The company also announces a new $300 million share repurchase program.
Positive
  • Enova International reports a 21% increase in total revenue for Q3 2023, reaching a record $551 million.
  • Adjusted earnings per share for Q3 2023 totaled $1.50, a positive increase from the previous year.
  • Total company combined loans and finance receivables increased by 15% to $3.1 billion in Q3 2023.
  • Enova repurchased $36 million of common stock and retired $10 million of senior notes during the quarter.
  • The Board of Directors authorized a new $300 million share repurchase program that expires in 2024.
Negative
  • None.
  • Total revenue increased 21% from the third quarter of 2022 to a record $551 million
  • Diluted earnings per share totaled $1.29 and adjusted earnings per share totaled $1.50
  • Total company combined loans and finance receivables increased 15% from the end of third quarter of 2022 to $3.1 billion as total company originations reached a quarterly record of $1.3 billion
  • Continued solid credit performance and outlook with a third quarter net revenue margin of 58% and a sequential increase in the fair value of the consolidated portfolio as a percentage of principal to 114% at September 30
  • Liquidity, including cash and marketable securities and available capacity on facilities, totaled $952 million at September 30
  • Repurchased $36 million of common stock under our share repurchase program and purchased and retired $10 million of senior notes during the quarter
  • The Board of Directors authorized a new share repurchase program totaling $300 million that expires December 31, 2024

CHICAGO, Oct. 24, 2023 /PRNewswire/ -- Enova International (NYSE: ENVA), a leading financial technology company powered by machine learning and world-class analytics, today announced financial results for the third quarter ended September 30, 2023. 

"We are pleased to report another strong quarter of origination and revenue growth, driven by solid demand and stable credit," said David Fisher, Enova's CEO. "Our diversified product offerings, world-class machine learning risk management algorithms and our strong balance sheet allowed us to nimbly lean into market opportunities to drive growth with strong unit economics while balancing risk and maintaining solid profit margins. Our talented team and business model capabilities in combination with our newly announced $300 million share repurchase program have us well positioned to create even more meaningful opportunities to drive value for our shareholders."

Third Quarter 2023 Summary

  • Total revenue of $551 million in the third quarter of 2023 increased 21% from $456 million in the third quarter of 2022.
  • Net revenue margin of 58% in the third quarter of 2023 compared to 64% in the third quarter of 2022.
  • Net income of $41 million, or $1.29 per diluted share, in the third quarter of 2023 compared to $52 million, or $1.57 per diluted share, in the third quarter of 2022.
  • Third quarter 2023 adjusted EBITDA, a non-GAAP measure, of $121 million compared to $115 million in the third quarter of 2022.
  • Adjusted earnings of $48 million, or $1.50 per diluted share, both non-GAAP measures, in the third quarter of 2023 compared to adjusted earnings of $57 million, or $1.74 per diluted share, in the third quarter of 2022.

"We delivered another solid quarter of financial results driven by record levels of quarterly originations and revenue," said Steve Cunningham, CFO of Enova. "The stable credit performance of our portfolio continues to allow us to attract new cost-effective funding to support growth and our strong liquidity position. Our diversified product offerings, flexible balance sheet, competitive position and new opportunity to return meaningful capital to our shareholders has us well positioned to deliver on our commitment to driving 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.

Share Repurchase Program

On October 23, the Board of Directors authorized a new share repurchase program totaling $300 million that expires December 31, 2024. The existing $150 million repurchase program that would have expired on December 31, 2023 will terminate and be replaced by this new program.

Conference Call

Enova will host a conference call to discuss its third quarter 2023 results at 4 p.m. Central Time / 5 p.m. Eastern Time today, October 24th. The live webcast of the call can be accessed at the Enova Investor Relations website at http://ir.enova.com, along with the company's earnings press release and supplemental financial information. The U.S. dial-in for the call is 1-855-560-2575 (1-412-542-4161 for non-U.S. callers). Please ask to join the Enova International call. A replay of the conference call will be available until October 31, 2023, 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 1320862.

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 9.0 million customers with over $52 billion in loans and financing. You can learn more about the company and its portfolio of businesses at www.enova.com.

Cautionary Statement Concerning Forward Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about the business, financial condition and prospects of Enova. These forward-looking statements give current expectations or forecasts of future events and reflect the views and assumptions of Enova's senior management with respect to the business, financial condition and prospects of Enova as of the date of this release and are not guarantees of future performance. The actual results of Enova could differ materially from those indicated by such forward-looking statements because of various risks and uncertainties applicable to Enova's business, including, without limitation, those risks and uncertainties indicated in Enova's filings with the Securities and Exchange Commission ("SEC"), including our annual report on Form 10-K, quarterly reports on Forms 10-Q and current reports on Forms 8-K. These risks and uncertainties are beyond the ability of Enova to control, and, in many cases, Enova cannot predict all of the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. When used in this release, the words "believes," "estimates," "plans," "expects," "anticipates" and similar expressions or variations as they relate to Enova or its management are intended to identify forward-looking statements. Enova cautions you not to put undue reliance on these statements. Enova disclaims any intention or obligation to update or revise any forward-looking statements after the date of this release.

Non-GAAP Financial Measures

In addition to the financial information prepared in conformity with generally accepted accounting principles, or GAAP, Enova provides historical non-GAAP financial information. Management believes that presentation of non-GAAP financial information is meaningful and useful in understanding the activities and business metrics of Enova's operations. Management believes that these non-GAAP financial measures reflect an additional way of viewing aspects of Enova's business that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business.

Management provides non-GAAP financial information for informational purposes and to enhance understanding of Enova's GAAP consolidated financial statements. Readers should consider the information in addition to, but not instead of or superior to, Enova's financial statements prepared in accordance with GAAP. This non-GAAP financial information may be determined or calculated differently by other companies, limiting the usefulness of those measures for comparative purposes.

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

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

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

 

ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(dollars in thousands, except per share data)

(Unaudited)




September 30,



December 31,




2023



2022



2022


Assets













Cash and cash equivalents


$

62,908



$

87,727



$

100,165


Restricted cash



133,413




84,412




78,235


Loans and finance receivables at fair value



3,321,062




2,765,123




3,018,528


Income taxes receivable



65,664




40,609




43,741


Other receivables and prepaid expenses



58,624




59,470




66,267


Property and equipment, net



103,911




89,375




93,228


Operating lease right-of-use assets



15,984




20,273




19,347


Goodwill



279,275




279,275




279,275


Intangible assets, net



21,019




29,403




27,390


Other assets



41,193




53,747




54,713


Total assets


$

4,103,053



$

3,509,414



$

3,780,889


Liabilities and Stockholders' Equity













Accounts payable and accrued expenses


$

275,160



$

168,978



$

198,320


Operating lease liabilities



27,136




35,320




33,595


Deferred tax liabilities, net



96,942




99,312




104,169


Long-term debt



2,442,784




2,059,577




2,258,660


Total liabilities



2,842,022




2,363,187




2,594,744


Commitments and contingencies













Stockholders' equity:













Common stock, $0.00001 par value, 250,000,000 shares authorized,

45,140,504, 44,200,180 and 44,326,999 shares issued and 30,244,289,

31,628,122 and 31,220,928 outstanding as of September 30, 2023 and

2022 and December 31, 2022, respectively










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

shares issued and outstanding










Additional paid in capital



274,053




245,092




251,878


Retained earnings



1,453,538




1,262,313




1,313,185


Accumulated other comprehensive loss



(7,203)




(7,255)




(5,990)


Treasury stock, at cost (14,896,215, 12,572,058 and 13,106,071

shares as of September 30, 2023 and 2022 and December 31, 2022,

respectively)



(459,357)




(353,923)




(372,928)


Total stockholders' equity



1,261,031




1,146,227




1,186,145


Total liabilities and stockholders' equity


$

4,103,053



$

3,509,414



$

3,780,889


 

ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)

(Unaudited)




Three Months Ended



Nine Months Ended




September 30,



September 30,




2023



2022



2023



2022


Revenue


$

551,360



$

456,200



$

1,534,047



$

1,249,921


Change in Fair Value



(231,749)




(162,005)




(629,161)




(422,465)


Net Revenue



319,611




294,195




904,886




827,456


Operating Expenses

















Marketing



116,508




101,278




292,234




286,000


Operations and technology



51,686




45,953




147,816




128,945


General and administrative



37,731




37,182




111,117




105,400


Depreciation and amortization



9,954




11,270




29,123




28,368


Total Operating Expenses



215,879




195,683




580,290




548,713


Income from Operations



103,732




98,512




324,596




278,743


Interest expense, net



(48,666)




(30,924)




(137,571)




(78,357)


Foreign currency transaction gain



179




363




8




70


Equity method investment (loss) income



(10)




(129)




(1,135)




6,522


Other nonoperating expenses



(25)




(230)




(279)




(1,321)


Income before Income Taxes



55,210




67,592




185,619




205,657


Provision for income taxes



13,925




15,884




45,266




49,105


Net income


$

41,285



$

51,708



$

140,353



$

156,552


Earnings Per Share

















Earnings per common share:

















Basic


$

1.35



$

1.62



$

4.53



$

4.80


Diluted


$

1.29



$

1.57



$

4.35



$

4.64


Weighted average common shares outstanding:

















Basic



30,600




31,912




31,006




32,589


Diluted



31,902




32,966




32,269




33,772


 

ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(dollars in thousands)

(Unaudited)




Nine Months Ended September 30,




2023



2022


Total cash flows provided by operating activities


$

852,581



$

624,860


Cash flows from investing activities









Loans and finance receivables



(895,010)




(1,200,390)


Capitalization of software development costs and purchases of fixed assets



(33,429)




(33,290)


Sale of a subsidiary






8,713


Total cash flows used in investing activities



(928,439)




(1,224,967)


Cash flows provided by financing activities



93,569




545,846


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



210




517


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



17,921




(53,744)


Cash, cash equivalents and restricted cash at beginning of year



178,400




225,883


Cash, cash equivalents and restricted cash at end of period


$

196,321



$

172,139


 

ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES

LOANS AND FINANCE RECEIVABLES FINANCIAL AND OPERATING DATA

(dollars in thousands)


The following table includes financial information for loans and finance receivables, which is based on loan and finance receivable

balances for the three months ended September 30, 2023 and 2022.


Three Months Ended September 30,


2023



2022



Change


Ending combined loan and finance receivable principal balance:













Company owned


$

2,904,686



$

2,552,609



$

352,077


Guaranteed by the Company(a)



13,684




11,843




1,841


Total combined loan and finance receivable principal balance(b)


$

2,918,370



$

2,564,452



$

353,918


Ending combined loan and finance receivable fair value balance:













Company owned


$

3,321,062



$

2,765,123



$

555,939


Guaranteed by the Company(a)



18,661




16,144




2,517


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


$

3,339,723



$

2,781,267



$

558,456


Fair value as a % of principal(c)



114.4

%



108.5

%



5.9

%

Ending combined loan and finance receivable balance, including

principal and accrued fees/interest outstanding:













Company owned


$

3,037,904



$

2,630,537



$

407,367


Guaranteed by the Company(a)



16,533




14,330




2,203


Ending combined loan and finance receivable balance(b)


$

3,054,437



$

2,644,867



$

409,570


Average combined loan and finance receivable balance, including

principal and accrued fees/interest outstanding:













Company owned(d)


$

2,947,494



$

2,515,129



$

432,365


Guaranteed by the Company(a)(d)



17,681




14,421




3,260


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


$

2,965,175



$

2,529,550



$

435,625















Revenue


$

543,124



$

449,817



$

93,307


Change in fair value



(229,758)




(160,308)




(69,450)


Net revenue



313,366




289,509




23,857


Net revenue margin



57.7

%



64.4

%



(6.7)

%














Delinquencies:













>30 days delinquent


$

242,126



$

147,688



$

94,438


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



7.9

%



5.6

%



2.3

%














Charge-offs:













Charge-offs (net of recoveries)


$

277,903



$

211,540



$

66,363


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

receivable balance(d)



9.4

%



8.4

%



1.0

%







(a)

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

(b)

Non-GAAP measure.

(c)

Determined using period-end balances.

(d)

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

 

ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(dollars in thousands, except per share data)



Adjusted Earnings Measures
















Three Months Ended



Nine Months Ended




September 30,



September 30,




2023



2022



2023



2022


Net income


$

41,285



$

51,708



$

140,353



$

156,552


Adjustments:

















Lease termination and cease-use costs(a)









1,698





Equity method investment loss (income)(b)



10




129




1,135




(6,194)


Other nonoperating expenses(c)



25




230




279




1,321


Intangible asset amortization



2,014




2,014




6,371




6,041


Stock-based compensation expense



7,075




5,457




19,280




15,957


Foreign currency transaction gain



(179)




(363)




(8)




(70)


Cumulative tax effect of adjustments



(2,228)




(1,871)




(7,163)




(3,174)



















Adjusted earnings


$

48,002



$

57,304



$

161,945



$

170,433



















Diluted earnings per share


$

1.29



$

1.57



$

4.35



$

4.64



















Adjusted earnings per share


$

1.50



$

1.74



$

5.02



$

5.05









Adjusted EBITDA
















Three Months Ended



Nine Months Ended




September 30,



September 30,




2023



2022



2023



2022


Net income


$

41,285



$

51,708



$

140,353



$

156,552


Depreciation and amortization expenses



9,954




11,270




29,123




28,368


Interest expense, net



48,666




30,924




137,571




78,357


Foreign currency transaction gain



(179)




(363)




(8)




(70)


Provision for income taxes



13,925




15,884




45,266




49,105


Stock-based compensation expense



7,075




5,457




19,280




15,957


Adjustments:

















Equity method investment loss (income)(b)



10




129




1,135




(6,522)


Other nonoperating expenses(c)



25




230




279




1,321



















Adjusted EBITDA


$

120,761



$

115,239



$

372,999



$

323,068



















Adjusted EBITDA margin calculated as follows:

















Total Revenue


$

551,360



$

456,200



$

1,534,047



$

1,249,921


Adjusted EBITDA



120,761




115,239




372,999




323,068


Adjusted EBITDA as a percentage of total revenue



21.9

%



25.3

%



24.3

%



25.8

%







(a)

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.

(b)

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.

(c)

In the first and second quarters of 2023, the Company recorded other nonoperating expense of $133 thousand ($100 thousand net of tax) and $121 thousand ($91 thousand net of tax), respectively, related to the repurchase of senior notes. In the second and third quarters of 2022, the Company recorded other nonoperating expenses of $1.1 million ($0.8 million net of tax) and $0.2 million ($0.2 million net of tax), respectively, related to incomplete transactions.

 

 

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SOURCE Enova International, Inc.

FAQ

What were Enova International's total revenues for Q3 2023?

Enova International reported total revenues of $551 million for Q3 2023.

What is the diluted earnings per share for Q3 2023?

The diluted earnings per share for Q3 2023 is $1.29.

Did Enova International repurchase any common stock during the quarter?

Yes, Enova International repurchased $36 million of common stock during the quarter.

What is the value of the new share repurchase program authorized by the Board of Directors?

The new share repurchase program authorized by the Board of Directors is valued at $300 million.

What is the total company combined loans and finance receivables for Q3 2023?

The total company combined loans and finance receivables for Q3 2023 is $3.1 billion.

Enova International, Inc.

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