Enova Reports Second Quarter 2018 Results

• Second quarter 2018 revenue grew 33% compared to a year ago, reaching $253 million and adjusted EBITDA grew 20% to $50 million

• Second quarter 2018 installment loan and receivables purchase agreement revenue grew 46% to $123 million and line of credit revenue grew 35% to $80 million

• Total loans outstanding grew 33% year-over-year during the second quarter, driven by nearprime installment loan portfolio growth of 39% to $416 million

• Diluted earnings per share grew 49% to $0.52 per share compared to the year ago quarter and adjusted earnings per share grew 44% to $0.59 per share

CHICAGO (July 26, 2018) — Enova International (NYSE: ENVA), a leading financial technology company offering consumer and small business loans and financing, today announced financial results for the quarter ended June 30, 2018.

“We are pleased with our strong second quarter results, driven by robust demand and stable credit across each of our six growth businesses,” said David Fisher, Enova’s CEO. “We’ve been consistent in executing our focused growth strategy, which includes the ongoing diversification of our business. These efforts have positioned us well in each of our markets to deliver sustainable and profitable long-term growth.”

Second Quarter 2018 Summary

• Total revenue of $253 million in the second quarter of 2018 increased 33% from $190 million in the second quarter of 2017.

• Gross profit margin was 52.0% in the second quarter of 2018 compared to 57.9% in the second quarter of 2017.

• Net income was $18 million, or $0.52 per diluted share, in the second quarter of 2018 compared to net income of $12 million, or $0.35 per diluted share, in the second quarter of 2017.

• Second quarter 2018 adjusted EBITDA of $50 million, a non-GAAP measure, increased from $42 million in the second quarter of 2017.

• Adjusted earnings of $21 million, or $0.59 per diluted share, a non-GAAP measure, in the second quarter of 2018 increased from adjusted earnings of $14 million, or $0.41 per diluted share, in the second quarter of 2017.

“The second quarter marks the 11th consecutive quarter we have delivered financial results within or exceeding our guidance ranges, demonstrating the strength of our business model and consistency of our execution,” said Steve Cunningham, CFO of Enova. “Strong receivables growth, stable credit, significant operating leverage, and balance sheet flexibility continue to drive our financial results.”

Enova ended the second quarter of 2018 with unrestricted cash and cash equivalents of $47 million. As of June 30, 2018, the company had total debt outstanding of $763 million, which included $179 million outstanding under Enova’s $295 million securitization facilities. During the second quarter, Enova generated $143 million of cash flow from operations. On July 23, the Company added a new 3-year, $150 million securitization facility to support growth of the NetCredit business. The new facility increases total NetCredit securitization capacity to $445 million and lowers the cost of financing.


For the third quarter of 2018, Enova expects total revenue of $260 million to $275 million, GAAP results of $0.30 diluted earnings per share to $0.52 diluted earnings per share, adjusted EBITDA of $40 million to $50 million, and adjusted earnings per share of $0.37 to $0.58. For the full year 2018, Enova expects total revenue of $1.035 billion to $1.075 billion, GAAP diluted earnings per share of $1.78 to $2.22, adjusted EBITDA of $195 million to $215 million, and adjusted earnings per share of $2.19 to $2.63. For information regarding the non-GAAP financial measures discussed in this release, please see “NonGAAP 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 today, Thursday, July 26th. 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 August 2, 2018, 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 10121788.

About Enova

Enova (NYSE: ENVA) is a leading provider of online financial services to non-prime consumers and small businesses, providing access to credit powered by its advanced analytics, innovative technology, and world-class online platform and services. Enova has provided more than 5 million customers around the globe with access to more than $20 billion in loans and financing. The financial technology company has a portfolio of trusted brands serving consumers, including CashNetUSA®, NetCredit®, On Stride Financial®, Pounds to Pocket®, QuickQuid® and Simplic®; two brands serving small businesses, Headway Capital® and The Business Backer®; and offers online lending platform services to lenders. Through its Enova Decisions™ brand, it also delivers on-demand decision-making technology and real-time predictive analytics services to clients. You can learn more about the company and its brands at www.enova.com.

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, stock-based compensation, loss on early extinguishment of debt and acquisition related costs, and Adjusted EBITDA margin is a nonGAAP 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. 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.