- Originations on new Contracts purchased in the fourth quarter of fiscal year 2022 reached a historic high of
$27.1 million in principal amount purchased, an increase of 10.2% year-over-year and 39.3% quarter-over-quarter. - Principal amount originated on Direct Loans in the fourth quarter of fiscal year 2022 increased by 127.1% year-over-year and 140.3% increase from fourth quarter fiscal year 2020.
- Portfolio Yield increased to 27.9% for the fourth quarter of fiscal year 2022 , a 30 basis point improvement year-over-year.
The Company announced net income for the year ended
For the year ended
“Despite the competitive lending environment, we are very pleased with our 4th Quarter originations. Thanks to the efforts of our great employees, we were able to purchase and originate
“Our training agenda continued into the fourth quarter, with new hire onboarding as well as more in-depth training for our seasoned Branch Managers and Assistant Branch Managers. We also continued our expansion efforts, utilizing our
Key Performance Indicators on Contracts Purchased | ||||||||||||||||||||||||||||
(Purchases in thousands) | ||||||||||||||||||||||||||||
Number of | Average | |||||||||||||||||||||||||||
Fiscal Year | Contracts | Principal Amount | Amount | Average | Average | Average | ||||||||||||||||||||||
/Quarter | Purchased | Purchased# | Financed*^ | APR* | Discount%* | Term* | ||||||||||||||||||||||
2022 | 7,793 | $ | 85,804 | $ | 11,002 | 23.1 | % | 6.9 | % | 47 | ||||||||||||||||||
4 | 2,404 | 27,139 | 11,289 | 22.9 | % | 6.9 | % | 47 | ||||||||||||||||||||
3 | 1,735 | 19,480 | 11,228 | 23.1 | % | 6.8 | % | 47 | ||||||||||||||||||||
2 | 1,707 | 18,880 | 11,061 | 23.0 | % | 6.7 | % | 47 | ||||||||||||||||||||
1 | 1,947 | 20,305 | 10,429 | 23.2 | % | 7.0 | % | 46 | ||||||||||||||||||||
2021 | 7,307 | $ | 74,025 | $ | 10,135 | 23.4 | % | 7.5 | % | 46 | ||||||||||||||||||
4 | 2,429 | 24,637 | 10,143 | 23.2 | % | 7.5 | % | 46 | ||||||||||||||||||||
3 | 1,483 | 15,285 | 10,307 | 23.4 | % | 7.5 | % | 46 | ||||||||||||||||||||
2 | 1,709 | 17,307 | 10,127 | 23.5 | % | 6.8 | % | 46 | ||||||||||||||||||||
1 | 1,686 | 16,796 | 9,962 | 23.5 | % | 8.0 | % | 46 | ||||||||||||||||||||
2020 | 7,647 | $ | 76,696 | $ | 10,035 | 23.4 | % | 7.9 | % | 47 | ||||||||||||||||||
4 | 1,991 | 19,658 | 9,873 | 23.5 | % | 7.9 | % | 46 | ||||||||||||||||||||
3 | 1,753 | 17,880 | 10,200 | 23.3 | % | 7.6 | % | 47 | ||||||||||||||||||||
2 | 2,011 | 20,104 | 9,997 | 23.5 | % | 7.9 | % | 46 | ||||||||||||||||||||
1 | 1,892 | 19,054 | 10,071 | 23.4 | % | 8.3 | % | 47 |
Key Performance Indicators on Direct Loans Originated (Originations in thousands) | |||||||||||||||||||||||
Number of | Principal | ||||||||||||||||||||||
Fiscal Year | Loans | Amount | Average Amount | Average | Average | ||||||||||||||||||
/Quarter | Originated | Originated | Financed*^ | APR* | Term* | ||||||||||||||||||
2022 | 6,770 | $ | 28,740 | $ | 4,307 | 30.5 | % | 26 | |||||||||||||||
4 | 1,584 | 7,458 | 4,708 | 30.0 | % | 27 | |||||||||||||||||
3 | 2,282 | 8,505 | 3,727 | 31.8 | % | 24 | |||||||||||||||||
2 | 1,588 | 7,040 | 4,433 | 30.0 | % | 26 | |||||||||||||||||
1 | 1,316 | 5,737 | 4,359 | 30.1 | % | 25 | |||||||||||||||||
2021 | 3,497 | $ | 14,148 | $ | 4,131 | 29.6 | % | 25 | |||||||||||||||
4 | 753 | 3,284 | 4,362 | 29.6 | % | 25 | |||||||||||||||||
3 | 1,265 | 4,605 | 3,641 | 30.9 | % | 22 | |||||||||||||||||
2 | 924 | 3,832 | 4,147 | 29.2 | % | 25 | |||||||||||||||||
1 | 555 | 2,427 | 4,373 | 28.7 | % | 26 | |||||||||||||||||
2020 | 3,142 | $ | 12,638 | $ | 4,017 | 28.2 | % | 25 | |||||||||||||||
4 | 720 | 3,104 | 4,310 | 28.6 | % | 25 | |||||||||||||||||
3 | 1,137 | 4,490 | 3,949 | 28.4 | % | 24 | |||||||||||||||||
2 | 739 | 2,988 | 4,043 | 27.4 | % | 25 | |||||||||||||||||
1 | 546 | 2,056 | 3,765 | 28.2 | % | 24 |
*Each average included in the tables is calculated as a simple average.
^Average amount financed is calculated as a single loan amount.
#Bulk portfolio purchase excluded for period-over-period comparability
Cautionary Note regarding Forward-Looking Statements
This press release may contain various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, that represent the Company’s current expectations or beliefs concerning future events. Statements other than those of historical fact, as well as those identified by words such as “anticipate,” “estimate,” intend,” “plan,” “expect,” “project,” “believe,” “may,” “will,” “should,” “would,” “could,” “probable” and any variation of the foregoing and similar expressions are forward-looking statements. Such forward-looking statements are inherently subject to risks and uncertainties. The Company’s actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements include the following: the ongoing impact of the COVID-19 pandemic and the mitigation efforts by governments and related effects on our financial condition, business operations and liquidity, our customers, our employees, and the overall economy; recently enacted, proposed or future legislation and the manner in which it is implemented; changes in the
Condensed Consolidated Statements of Income
(Unaudited, Dollars in Thousands, Except Share and Per Share Amounts)
Three months ended | Twelve months ended | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Revenue: | |||||||||||||||
Interest and fee income on finance receivables | $ | 12,308 | $ | 12,816 | $ | 49,714 | $ | 54,211 | |||||||
Gain on equity investments | - | 470 | - | 1,809 | |||||||||||
Total Revenue | $ | 12,308 | $ | 13,286 | $ | 49,714 | $ | 56,020 | |||||||
Expenses: | |||||||||||||||
Operating expenses | 9,275 | 8,963 | 34,402 | 31,844 | |||||||||||
Provision for credit losses | 2,100 | 250 | 5,900 | 7,250 | |||||||||||
Interest expense | 443 | 1,320 | 5,366 | 5,980 | |||||||||||
Total expenses | 11,818 | 10,533 | 45,668 | 45,074 | |||||||||||
Income before income taxes | 490 | 2,753 | 4,046 | 10,946 | |||||||||||
Income tax expense | 122 | 884 | 1,048 | 2,595 | |||||||||||
Net Income | $ | 368 | $ | 1,869 | $ | 2,998 | $ | 8,351 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.05 | $ | 0.24 | $ | 0.39 | $ | 1.09 | |||||||
Diluted | $ | 0.05 | $ | 0.24 | $ | 0.39 | $ | 1.09 |
Condensed Consolidated Balance Sheets
(Unaudited, In Thousands)
2022 | 2021 | ||||||
Cash and restricted cash | $ | 4,775 | $ | 32,977 | |||
Finance receivables, net | 168,600 | 170,318 | |||||
Repossessed assets | 658 | 685 | |||||
Operating lease right-of-use assets | 4,277 | 3,392 | |||||
Other assets | 5,260 | 5,066 | |||||
Total assets | $ | 183,570 | $ | 212,438 | |||
Credit facility, net of debt issuance costs | $ | 54,813 | $ | 86,154 | |||
Note payable | 3,244 | 3,244 | |||||
Operating lease liabilities | 4,410 | 3,367 | |||||
Other liabilities | 4,717 | 4,451 | |||||
Total liabilities | 67,184 | 97,216 | |||||
Shareholders’ equity | 116,386 | 115,222 | |||||
Total liabilities and shareholders’ equity | $ | 183,570 | $ | 212,438 | |||
Book value per share | $ | 15.42 | $ | 14.95 |
Three months ended | Twelve months ended | ||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||
Portfolio Summary | 2022 | 2021 | 2022 | 2021 | |||||||||||||
Average finance receivables (1) | $ | 176,439 | $ | 185,750 | $ | 178,686 | $ | 199,102 | |||||||||
Average indebtedness (2) | $ | 54,490 | $ | 92,761 | $ | 67,684 | $ | 107,615 | |||||||||
Interest and fee income on finance receivables | $ | 12,308 | $ | 12,816 | $ | 49,714 | $ | 54,211 | |||||||||
Interest expense | 443 | 1,320 | 5,366 | $ | 5,980 | ||||||||||||
Net interest and fee income on finance receivables | $ | 11,865 | $ | 11,496 | $ | 44,348 | $ | 48,231 | |||||||||
Portfolio yield (3) | 27.90 | % | 27.60 | % | 27.82 | % | 27.23 | % | |||||||||
Interest expense as a percentage of average finance receivables | 1.00 | % | 2.84 | % | 3.00 | % | 3.00 | % | |||||||||
Provision for credit losses as a percentage of average finance receivables | 4.76 | % | 0.54 | % | 3.30 | % | 3.64 | % | |||||||||
Net portfolio yield (3) | 22.14 | % | 24.22 | % | 21.52 | % | 20.59 | % | |||||||||
Operating expenses as a percentage of average finance receivables | 21.03 | % | 19.30 | % | 19.25 | % | 15.99 | % | |||||||||
Pre-tax yield as a percentage of average finance receivables (4) | 1.11 | % | 4.92 | % | 2.27 | % | 4.60 | % | |||||||||
Net charge-off percentage (5) | 6.45 | % | 6.83 | % | 5.13 | % | 6.16 | % | |||||||||
Finance receivables | $ | 178,786 | $ | 184,237 | |||||||||||||
Allowance percentage (6) | 1.61 | % | 3.34 | ||||||||||||||
Total reserves percentage (7) | 5.66 | % | 7.49 | % |
Note: All three-month statement of income performance indicators expressed as percentages have been annualized.
(1) Average finance receivables represent the average of finance receivables throughout the period.
(2) Average indebtedness represents the average daily outstanding borrowings under the Credit Facility. Average indebtedness does not include the PPP loan.
(3) Portfolio yield represents interest and fee income on finance receivables as a percentage of average finance receivables. Net portfolio yield represents (a) interest and fee income on finance receivables minus (b) interest expense minus (c) the provision for credit losses, as a percentage of average finance receivables.
(4) Pre-tax yield represents net portfolio yield minus operating expenses, as a percentage of average finance receivables.
(5) Net charge-off percentage represents net charge-offs (charge-offs less recoveries) divided by average finance receivables, outstanding during the period.
(6) Allowance percentage represents the allowance for credit losses divided by finance receivables outstanding as of ending balance sheet date.
(7) Total reserves percentage represents the allowance for credit losses, purchase price discount, and unearned dealer discounts divided by finance receivables outstanding as of ending balance sheet date.
The following tables present certain information regarding the delinquency rates experienced by the Company with respect to automobile finance installment contracts (“Contracts”) and direct consumer loans (“Direct Loans”), excluding any Chapter 13 bankruptcy accounts:
(In thousands, except percentages)
Contracts | Balance | ||||||||||||||||||||||||
Outstanding | 30 – 59 days | 60 – 89 days | 90 – 119 days | 120+ | Total | ||||||||||||||||||||
$ | 154,144 | $ | 7,097 | $ | 2,936 | $ | 1,183 | $ | 49 | $ | 11,265 | ||||||||||||||
4.60 | % | 1.90 | % | 0.77 | % | 0.03 | % | 7.31 | % | ||||||||||||||||
$ | 170,195 | $ | 6,289 | $ | 2,430 | $ | 896 | $ | 42 | $ | 9,657 | ||||||||||||||
3.70 | % | 1.43 | % | 0.53 | % | 0.02 | % | 5.67 | % | ||||||||||||||||
Direct Loans | Balance | ||||||||||||||||||||||||
Outstanding | 30 – 59 days | 60 – 89 days | 90 – 119 days | 120+ | Total | ||||||||||||||||||||
$ | 24,376 | $ | 608 | $ | 197 | $ | 77 | $ | 0 | $ | 882 | ||||||||||||||
2.49 | % | 0.81 | % | 0.32 | % | 0.00 | % | 3.62 | % | ||||||||||||||||
$ | 13,909 | $ | 253 | $ | 101 | $ | 81 | $ | 10 | $ | 445 | ||||||||||||||
1.82 | % | 0.73 | % | 0.58 | % | 0.07 | % | 3.20 | % |
The following table presents selected information on Contracts purchased and Direct Loans originated by the Company:
Contracts | Direct Loans | ||||||||||||||||
Three months ended | Three months ended | ||||||||||||||||
(Purchases in thousands) | (Originations in thousands) | ||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||
Purchases/Originations | $ | 27,139 | $ | 24,637 | $ | 7,458 | $ | 3,284 | |||||||||
Average APR | 22.9 | % | 23.2 | % | 30 | % | 29.6 | % | |||||||||
Average discount | 6.9 | % | 7.5 | % | N/A | N/A | |||||||||||
Average term (months) | 47 | 46 | 27 | 25 | |||||||||||||
Average amount financed | $ | 11,289 | $ | 10,143 | $ | 4,708 | $ | 4,362 | |||||||||
Number of contracts | 2,404 | 2,429 | 1,584 | 753 | |||||||||||||
Contracts | Direct Loans | ||||||||||||||||
Twelve months ended | Twelve months ended | ||||||||||||||||
(Purchases in thousands) | (Originations in thousands) | ||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||
Purchases/Originations | $ | 85,804 | $ | 74,025 | $ | 28,740 | $ | 14,148 | |||||||||
Average APR | 23.1 | % | 23.4 | % | 30.5 | % | 29.6 | % | |||||||||
Average discount | 6.9 | % | 7.5 | % | N/A | N/A | |||||||||||
Average term (months) | 47 | 46 | 26 | 25 | |||||||||||||
Average amount financed | $ | 11,002 | $ | 10,135 | $ | 4,307 | $ | 4,131 | |||||||||
Number of contracts | 7,793 | 7,307 | 6,770 | 3,497 |
The following table presents selected information on the entire Contract and Direct Loan portfolios of the Company:
Contracts | Direct Loans | ||||||||||||||||
As of | As of | ||||||||||||||||
Portfolio | 2022 | 2021 | 2022 | 2021 | |||||||||||||
Average APR | 22.9 | % | 22.8 | % | 29.8 | % | 28.5 | % | |||||||||
Average discount | 7.4 | % | 7.6 | % | N/A | N/A | |||||||||||
Average term (months) | 50 | 51 | 27 | 26 | |||||||||||||
Number of active contracts | 19,559 | 22,760 | 6,444 | 4,017 |
Contact:Irina Nashtatik CFO Ph # (727)-726-0763
Source:
2022 GlobeNewswire, Inc., source