ELEVATE CREDIT, INC. Full Press Release Linked Here.
FORT WORTH, TX - May 6, 2020 - Elevate Credit, Inc. (NYSE: ELVT) ('Elevate' or the 'Company'), a leading tech-enabled provider of innovative and responsible online credit solutions for non-prime consumers, today announced results for the first quarter ended March 31, 2020.
'We are pleased that our Q1 adjusted net income exceeded our previous guidance, however, we acknowledge investors are most focused on our future outlook,' said Elevate President and CEO Jason Harvison. 'Our proactive measures to reach consumers with payment flexibility tools have helped provide insulation to them from the unprecedented events of COVID-19. While we are seeing a manageable uptick in customer payment deferrals, our delinquent customer loan balances are in line with historical percentages.'
First Quarter 2020 Financial Results1
• $13.6 million in non-operating charges result in net loss: Net loss for the three months ended March 31, 2020 totaled $(4.9) million, down $18.3 million compared to $13.4 million in net income in the first quarter of 2019. Basic and fully diluted loss per share for the first quarter of 2020 were $(0.11), a decrease from $0.30 per fully diluted earnings per share a year ago. Excluding the impact of non-operating charges of $9.3 million related to the write-off of goodwill associated with our UK entity and a $4.3 million non-operating loss related to a legal matter, adjusted net income for the first quarter of 2020 would have been $7.6 million, or $0.17 per fully diluted share. See 'Non-GAAP Financial Measures' for a reconciliation of the tax impact to the GAAP measures of net (loss) income and diluted (loss) earnings per share. Additionally, net income from our UK operations decreased $6.0 million in the first quarter of 2020 compared to a year ago due to a decline in revenue and increase in complaint expense associated with customer affordability claims resulting in a $3.6 million net loss for the quarter.
• Revenue: Revenues decreased 6.4% for the first quarter of 2020 totaling $177.5 million compared to $189.5 million for the first quarter of 2019. Excluding the year-over-year decline in revenues from our UK operations, revenues from our US operations for the first quarter of 2020 increased over the prior year first quarter. Additionally, consolidated revenues less net charge-offs totaled $89.4 million for the first quarter of 2020, an increase of 4.5% from $85.5 million in the first quarter of 2019.
• Combined loans receivable - principal: Combined loans receivable - principal totaled $577.7 million at March 31, 2020, an increase of $2.6 million, or 0.4%, from $575.1 million for the prior-year quarter end. Combined loans receivable - principal at March 31, 2020 for our flagship Rise installment loan product were up 15.5% from the first quarter of 2019, despite a $13.6 million decrease in our California Rise loan balances. The California Rise loan portfolio totaled $39.8 million at March 31, 2020, down from $58.0 million at December 31, 2019.
__________________________
1 Adjusted EBITDA, Adjusted EBITDA margin, combined loans receivable - principal, combined loans receivable, combined loan loss reserve, adjusted net income and adjusted diluted earnings per share are non-GAAP financial measures. These terms are defined elsewhere in this release. Please see the schedules appearing later in this release for reconciliations of these non-GAAP measures to the most directly comparable GAAP measures.
Conference Call
The Company will host a conference call to discuss its first quarter 2020 financial results on Wednesday, May 6 at 4:00pm Central Time / 5:00pm Eastern Time. Interested parties may access the conference call live over the phone by dialing 1-855-327-6837 (domestic) or 1-631-891-4304 (international) and requesting the Elevate Credit First Quarter 2020 Earnings Conference Call. Participants are asked to dial in a few minutes prior to the call to register for the event.The conference call will also be webcast live through Elevate's website at http://www.elevate.com/investors.
An audio replay of the conference call will be available approximately three hours after the conference call until 11:59 pm ET on May 20, 2020, and can be accessed by dialing 1-844-512-2921 (domestic) or 1-412-317-6671 (international), and providing the passcode 10009293, or by accessing Elevate's website.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements contain words such as 'may,' 'will,' 'might,' 'expect,' 'believe,' 'anticipate,' 'could,' 'would,' 'estimate,' 'continue,' 'pursue,' or the negative thereof or comparable terminology, and may include (without limitation) information regarding the Company's expectations, goals or intentions regarding future performance. These statements may include
words such as 'anticipate,' 'estimate,' 'expect,' 'project,' 'plan,' 'intend,' 'believe,' 'may,' 'will,' 'should,' 'likely' and other words and terms of similar meaning. The forward-looking statements include statements regarding: our early read of a steady, but manageable, uptick in deferred payments; our proactive measures to reach customers providing insulation from the unprecedented events of COVID-19; our expectations regarding the underwriting changes implemented by us and the bank originators we support to address credit risk associated with originations during the
economic crisis created by the COVID-19 pandemic; our plans with respect to assessing minimum cash and liquidity requirements and implementing measures to ensure that our strong liquidity position is maintained through the current economic cycle; and the Company's targeted customer acquisition cost range of $250-$300. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any
such statement. These risks and uncertainties include, but are not limited to: the effect of the COVID-19 pandemic and various policies being implemented to prevent its spread on the Company's business, financial condition and results of operations; the Company's limited operating history in an evolving industry; the Company's ability to grow revenue and maintain or achieve consistent profitability in the future; new laws and regulations in the consumer lending industry
in many jurisdictions that could restrict the consumer lending products and services the Company offers, impose additional compliance costs on the Company, render the Company's current operations unprofitable or even prohibit the Company's current operations; scrutiny by regulators and payment processors of certain online lenders' access to the Automated Clearing House system to disburse and collect loan proceeds and repayments; a lack of sufficient debt
financing at acceptable prices or disruptions in the credit markets; the impact of competition in our industry and innovation by our competitors; our ability to prevent security breaches, disruption in service and comparable events that could compromise the personal and confidential information held in our data systems, reduce the attractiveness of our platform or adversely impact our ability to service loans; and other risks related to litigation, compliance and regulation. Additional factors that could cause actual results to differ are discussed under the heading 'Risk Factors'
and in other sections of the Company's most recent Annual Report on Form 10-K, and in the Company's other current and periodic reports filed from time to time with the SEC. All forward-looking statements in this press release are made as of the date hereof, based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement.
About Elevate
Elevate (NYSE: ELVT), together with the banks that license its marketing and technology services, has originated $8.4 billion in non-prime credit to more than 2.5 million non-prime consumers to date and has saved its customers more than $7.0 billion versus the cost of payday loans. Its responsible, tech-enabled online credit solutions provide immediate relief to customers today and help them build a brighter financial future. The company is committed to rewarding borrowers' good financial behavior with features like interest rates that can go down over time, free financial
training and free credit monitoring. Elevate's suite of groundbreaking credit products includes RISE, Elastic, Sunny and Today Card. For more information, please visit http://www.elevate.com.
Investor Relations:
Solebury Trout
Sloan Bohlen, (817) 928-1646
investors@elevate.com
or
Media Inquiries:
Solebury Trout
Lisa Wolford, (917) 846-0881
lwolford@soleburytrout.com
Full Press Release Linked Here.
FORT WORTH, TX - May 6, 2020 - Elevate Credit, Inc. (NYSE: ELVT) ('Elevate' or the 'Company'), a leading tech-enabled provider of innovative and responsible online credit solutions for non-prime consumers, today announced results for the first quarter ended March 31, 2020.
'We are pleased that our Q1 adjusted net income exceeded our previous guidance, however, we acknowledge investors are most focused on our future outlook,' said Elevate President and CEO Jason Harvison. 'Our proactive measures to reach consumers with payment flexibility tools have helped provide insulation to them from the unprecedented events of COVID-19. While we are seeing a manageable uptick in customer payment deferrals, our delinquent customer loan balances are in line with historical percentages.'
First Quarter 2020 Financial Results1
• $13.6 million in non-operating charges result in net loss: Net loss for the three months ended March 31, 2020 totaled $(4.9) million, down $18.3 million compared to $13.4 million in net income in the first quarter of 2019. Basic and fully diluted loss per share for the first quarter of 2020 were $(0.11), a decrease from $0.30 per fully diluted earnings per share a year ago. Excluding the impact of non-operating charges of $9.3 million related to the write-off of goodwill associated with our UK entity and a $4.3 million non-operating loss related to a legal matter, adjusted net income for the first quarter of 2020 would have been $7.6 million, or $0.17 per fully diluted share. See 'Non-GAAP Financial Measures' for a reconciliation of the tax impact to the GAAP measures of net (loss) income and diluted (loss) earnings per share. Additionally, net income from our UK operations decreased $6.0 million in the first quarter of 2020 compared to a year ago due to a decline in revenue and increase in complaint expense associated with customer affordability claims resulting in a $3.6 million net loss for the quarter.
• Revenue: Revenues decreased 6.4% for the first quarter of 2020 totaling $177.5 million compared to $189.5 million for the first quarter of 2019. Excluding the year-over-year decline in revenues from our UK operations, revenues from our US operations for the first quarter of 2020 increased over the prior year first quarter. Additionally, consolidated revenues less net charge-offs totaled $89.4 million for the first quarter of 2020, an increase of 4.5% from $85.5 million in the first quarter of 2019.
• Combined loans receivable - principal: Combined loans receivable - principal totaled $577.7 million at March 31, 2020, an increase of $2.6 million, or 0.4%, from $575.1 million for the prior-year quarter end. Combined loans receivable - principal at March 31, 2020 for our flagship Rise installment loan product were up 15.5% from the first quarter of 2019, despite a $13.6 million decrease in our California Rise loan balances. The California Rise loan portfolio totaled $39.8 million at March 31, 2020, down from $58.0 million at December 31, 2019.
__________________________
1 Adjusted EBITDA, Adjusted EBITDA margin, combined loans receivable - principal, combined loans receivable, combined loan loss reserve, adjusted net income and adjusted diluted earnings per share are non-GAAP financial measures. These terms are defined elsewhere in this release. Please see the schedules appearing later in this release for reconciliations of these non-GAAP measures to the most directly comparable GAAP measures.
Conference Call
The Company will host a conference call to discuss its first quarter 2020 financial results on Wednesday, May 6 at 4:00pm Central Time / 5:00pm Eastern Time. Interested parties may access the conference call live over the phone by dialing 1-855-327-6837 (domestic) or 1-631-891-4304 (international) and requesting the Elevate Credit First Quarter 2020 Earnings Conference Call. Participants are asked to dial in a few minutes prior to the call to register for the event.The conference call will also be webcast live through Elevate's website at http://www.elevate.com/investors.
An audio replay of the conference call will be available approximately three hours after the conference call until 11:59 pm ET on May 20, 2020, and can be accessed by dialing 1-844-512-2921 (domestic) or 1-412-317-6671 (international), and providing the passcode 10009293, or by accessing Elevate's website.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements contain words such as 'may,' 'will,' 'might,' 'expect,' 'believe,' 'anticipate,' 'could,' 'would,' 'estimate,' 'continue,' 'pursue,' or the negative thereof or comparable terminology, and may include (without limitation) information regarding the Company's expectations, goals or intentions regarding future performance. These statements may include
words such as 'anticipate,' 'estimate,' 'expect,' 'project,' 'plan,' 'intend,' 'believe,' 'may,' 'will,' 'should,' 'likely' and other words and terms of similar meaning. The forward-looking statements include statements regarding: our early read of a steady, but manageable, uptick in deferred payments; our proactive measures to reach customers providing insulation from the unprecedented events of COVID-19; our expectations regarding the underwriting changes implemented by us and the bank originators we support to address credit risk associated with originations during the
economic crisis created by the COVID-19 pandemic; our plans with respect to assessing minimum cash and liquidity requirements and implementing measures to ensure that our strong liquidity position is maintained through the current economic cycle; and the Company's targeted customer acquisition cost range of $250-$300. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any
such statement. These risks and uncertainties include, but are not limited to: the effect of the COVID-19 pandemic and various policies being implemented to prevent its spread on the Company's business, financial condition and results of operations; the Company's limited operating history in an evolving industry; the Company's ability to grow revenue and maintain or achieve consistent profitability in the future; new laws and regulations in the consumer lending industry
in many jurisdictions that could restrict the consumer lending products and services the Company offers, impose additional compliance costs on the Company, render the Company's current operations unprofitable or even prohibit the Company's current operations; scrutiny by regulators and payment processors of certain online lenders' access to the Automated Clearing House system to disburse and collect loan proceeds and repayments; a lack of sufficient debt
financing at acceptable prices or disruptions in the credit markets; the impact of competition in our industry and innovation by our competitors; our ability to prevent security breaches, disruption in service and comparable events that could compromise the personal and confidential information held in our data systems, reduce the attractiveness of our platform or adversely impact our ability to service loans; and other risks related to litigation, compliance and regulation. Additional factors that could cause actual results to differ are discussed under the heading 'Risk Factors'
and in other sections of the Company's most recent Annual Report on Form 10-K, and in the Company's other current and periodic reports filed from time to time with the SEC. All forward-looking statements in this press release are made as of the date hereof, based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement.
About Elevate
Elevate (NYSE: ELVT), together with the banks that license its marketing and technology services, has originated $8.4 billion in non-prime credit to more than 2.5 million non-prime consumers to date and has saved its customers more than $7.0 billion versus the cost of payday loans. Its responsible, tech-enabled online credit solutions provide immediate relief to customers today and help them build a brighter financial future. The company is committed to rewarding borrowers' good financial behavior with features like interest rates that can go down over time, free financial
training and free credit monitoring. Elevate's suite of groundbreaking credit products includes RISE, Elastic, Sunny and Today Card. For more information, please visit http://www.elevate.com.
Investor Relations:
Solebury Trout
Sloan Bohlen, (817) 928-1646
investors@elevate.com
or
Media Inquiries:
Solebury Trout
Lisa Wolford, (917) 846-0881
lwolford@soleburytrout.com
Attachments
- Original document
- Permalink
Disclaimer
Elevate Credit Inc. published this content on 06 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 May 2020 20:18:01 UTC
