Enova Announces Fourth Quarter and Full Year 2015 Results

  • Total 4Q15 combined originations rose 5.3% year over year to $546.4 million
  • Installment loan and receivables purchase agreement revenue rose 28.0% year over year to $78.9 million
  • Near-prime installment loan portfolio balances increased 84% year over year
  • Granted full authorization from the U.K. regulator following a new review process for all consumer lenders to ensure they were meeting the rigorous standards set forth by the agency
  • Recently completed first asset-backed securitization with a $175 millionfacility for the NetCredit installment loan portfolio

CHICAGO (Feb. 4, 2016) — Enova International (NYSE: ENVA), a technology and analytics driven online lender, today announced financial results for the quarter and year ended December 31, 2015.

“We are pleased with the improved results in our business during the fourth quarter,” said David Fisher, CEO of Enova. “Our new initiatives continue to perform very well, reflecting the success of our strategy to diversify our business to prepare for anticipated regulatory changes in the United States. Leading these efforts is our NetCredit near-prime offering, which has progressed to solid profitability. Given the strong growth of this product, we successfully completed our inaugural securitization early in the first quarter of 2016. This transaction is a significant milestone for Enova and provides a strong validation of our underlying NetCredit portfolio and advanced analytics platform. Moreover, the offering lowers our cost of capital and provides a significant source of funding to sustain the anticipated growth of our near-prime business.”

Fourth Quarter 2015 Summary

  • Total revenue of $175.4 million in the fourth quarter of 2015 declined 9.9% from $194.7 million in the fourth quarter of 2014 as a 10.2% increase in U.S. revenue was offset by a 51.1% decrease in international revenue, primarily due to regulatory changes in the United Kingdom.
  • Gross profit margin of 59.4% in the fourth quarter of 2015 declined from 68.9% in the fourth quarter of 2014, driven by stronger growth in the U.S. installment loan portfolio and a higher mix of new customers, which require higher loan loss provisions. The higher gross profit margin in the fourth quarter of 2014 was heavily influenced by the regulatory changes in the United Kingdom and the resulting decline in loan portfolios in that market.
  • Adjusted EBITDA of $28.3 million, a non-GAAP measure, compared to $54.8 million in the fourth quarter of 2014.
  • Net income decreased to $4.2 million, or $0.13 per diluted share, in the fourth quarter of 2015 from $22.5 million, or $0.68 per diluted share in the fourth quarter of 2014.

Full Year 2015 Summary

  • Total revenue of $652.6 million in 2015 decreased from $809.8 million in 2014, as a 7.5% increase in U.S. revenue was offset by a 57.5% decline in international revenue.
  • Gross profit margin of 66.8% in 2015 compared to 67.1% in 2014.
  • Adjusted EBITDA of $155.7 million in 2015 compared to $235.8 million in 2014.
  • Net income of $44.0 million, or $1.33 per diluted share, in 2015 compared to $111.7 million, or $3.38 per diluted share, in 2014.
  • Adjusted earnings, a non-GAAP measure, of $53.0 million, or $1.60 per diluted share, in 2015 compared to $113.0 million, or $3.42 per diluted share, in 2014.

“Total originations rose sequentially in each of the last three quarters and we achieved our second consecutive quarter of year over year growth in originations since regulatory changes were implemented in the United Kingdom during 2014. This growth was led by our installment loan products, most notably our U.S. near-prime offering. Overall, installment loan products have grown to represent the largest portion of our revenue mix, accounting for 66% of our loan balances and 45% of total revenue in the fourth quarter,” said Robert Clifton, CFO of Enova.

Enova ended the fourth quarter of 2015 with cash and cash equivalents of $42.1 million before issuing a term note for $107.4 million in January 2016, under its $175 million securitization facility. As of December 31, 2015, the company had combined loans and finance receivables of $536.1 million, an increase of 26.2% over the prior year period, and outstanding debt of $553.3 million. During the fourth quarter, Enova generated $78.4 million of cash flow from operations.


For the first quarter 2016, Enova expects total revenue of $150 million to $165 million and Adjusted EBITDA of $25 million to $35 million. For the full year 2016, Enova expects total revenue of $675 million to $725 million and Adjusted EBITDA of $120 million to $140 million.

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.

Conference Call

Enova will host a conference call to discuss its results at 4 p.m. Central Time / 5 p.m. Eastern Time on February 4, 2016. 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 be joined to the Enova International Call. A replay of the conference call will be available until February 12, 2016, 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 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 10078909.

About Enova

Enova is a leading provider of online financial services to the large and growing number of customers who use alternative financial services because of their limited access to more traditional credit. Enova offers or arranges loans for consumers and/or financing for small businesses in all 50 states and Washington D.C. in the United States and in five foreign countries:

  • in the United States at https://www.cashnetusa.com, https://www.netcredit.com, https://www.headwaycapital.com and http://www.businessbacker.com,
  • in the United Kingdom at https://www.quickquid.co.uk, https://www.poundstopocket.co.uk and https://www.onstride.co.uk,
  • in Australia at https://www.dollarsdirect.com.au,
  • in Canada at https://www.dollarsdirect.ca,
  • in Brazil at https://www.simplic.com.br, and
  • in China at https://www.youxinyi.cn.

Enova, through its trusted brands, uses its proprietary technology, analytics, and customer service capabilities to quickly evaluate, underwrite, and fund loans or provide financing to customers when and how they want it. Headquartered in Chicago, Enova has more than 1,100 employees serving its online customers across the globe. 

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

Enova has provided combined loans and finance receivables, which is a non-GAAP measure. Enova also reports allowances and liabilities for estimated losses on loans and finance receivables individually and on a combined basis, which are GAAP measures that are included in Enova’s financial statements. Management believes these measures provide investors with important information needed to evaluate the magnitude of potential cost of revenue and the opportunity for revenue performance of the loan and finance receivables portfolio on an aggregate basis. Management believes that the comparison of the aggregate amounts from period to period is more meaningful than comparing only the residual amount on Enova’s balance sheet since both revenue and the cost of revenue for loans and finance receivables are impacted by the aggregate amount of loans and finance receivables owned by Enova and those guaranteed by Enova as reflected in its financial statements.

Adjusted Earnings and Adjusted Earnings Per Share

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 certain expense items. 

Adjusted EBITDA

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, and Adjusted EBITDA margin is a non-GAAP measure that Enova defines as Adjusted EBITDA as a percentage of total revenue. Management believes Adjusted EBITDA and Adjusted EBITDA margin 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 and Adjusted EBITDA margin are also useful to investors to help assess Enova’s estimated enterprise value. In addition, management believes that the adjustment for lease termination and relocation costs shown below is useful to investors in order to allow them to compare Enova’s financial results during the periods shown without the effect of the expense item. The computation of Adjusted EBITDA and Adjusted EBITDA margin as presented below may differ from the computation of similarly-titled measures provided by other companies.