PART I. FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) This section presents Enova International, Inc.'s unaudited consolidated financial statements as of and for the periods ended June 30, 2024, showing total assets increased to $4.82 billion and six-month total revenue to $1.24 billion Consolidated Balance Sheets Total assets reached $4.82 billion as of June 30, 2024, up from $3.91 billion in 2023, driven by increased loans and finance receivables, while total stockholders' equity decreased to $1.15 billion Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2024 | June 30, 2023 | December 31, 2023 | | :--- | :--- | :--- | :--- | | Assets | | | | | Cash and cash equivalents | $60,138 | $100,042 | $54,357 | | Loans and finance receivables at fair value | $3,939,159 | $3,092,445 | $3,629,167 | | Total Assets | $4,817,091 | $3,907,907 | $4,585,536 | | Liabilities & Equity | | | | | Long-term debt | $3,194,121 | $2,297,026 | $2,943,805 | | Total Liabilities | $3,669,563 | $2,658,577 | $3,345,353 | | Total Stockholders' Equity | $1,147,528 | $1,249,330 | $1,240,183 | Consolidated Statements of Income Total revenue for Q2 2024 increased to $628.4 million, with net income rising to $53.9 million or $1.93 per diluted share, and six-month net income reaching $102.3 million Statement of Income Summary (in thousands, except per share data) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $628,436 | $499,431 | $1,238,325 | $982,687 | | Net Revenue | $370,191 | $299,385 | $716,057 | $585,275 | | Income from Operations | $145,056 | $111,596 | $275,848 | $220,864 | | Net Income | $53,911 | $48,145 | $102,339 | $99,068 | | Diluted EPS | $1.93 | $1.50 | $3.56 | $3.05 | Consolidated Statements of Cash Flows Net cash from operations significantly increased to $709.5 million for the six months ended June 30, 2024, while investing activities used $850.0 million, and financing activities provided $35.2 million Cash Flow Summary - Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $709,505 | $581,339 | | Net cash used in investing activities | ($849,950) | ($483,477) | | Net cash provided by (used in) financing activities | $35,159 | ($15,069) | | Net (decrease) increase in cash | ($106,134) | $83,261 | Notes to Consolidated Financial Statements These notes detail accounting policies, business operations as an internet-based lender, fair value accounting for loans, debt facilities, and confirm the company operates as a single reportable segment primarily in the U.S. - The company operates an internet-based lending platform offering unsecured loans and financing to consumers and small businesses, primarily in the U.S. and Brazil29 - The entire loan and finance receivable portfolio is carried at fair value, determined using discounted cash flow analyses, with changes recorded in the income statement35 - The company operates as a single reportable segment, aggregating all business components due to similar economic characteristics, products, services, and customer types82 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the company's financial performance, highlighting a 25.8% increase in Q2 2024 total revenue driven by loan portfolio growth and emphasizing proprietary technology and analytics Business Overview and Products Enova provides online financial services to consumers and small businesses, leveraging proprietary analytics and machine learning for underwriting, with diverse product offerings primarily in the U.S. and Brazil - Enova, a technology and analytics company, extended approximately $2.8 billion in credit in the first six months of 2024 through its online financial services110 - The company utilizes proprietary underwriting systems with advanced risk analytics, including machine learning and AI, with approximately 90% of analytical models being machine learning-enabled112 - Product offerings include consumer and small business installment loans and lines of credit, primarily available in the U.S. and Brazil118 Results of Operations Enova's Q2 2024 total revenue grew 25.8% to $628.4 million, with net income increasing to $53.9 million, driven by higher loan balances across consumer and small business segments Q2 2024 vs Q2 2023 Performance Highlights | Metric | Q2 2024 | Q2 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $628.4M | $499.4M | 25.8% | | Net Revenue | $370.2M | $299.4M | 23.7% | | Income from Operations | $145.1M | $111.6M | 30.0% | | Net Income | $53.9M | $48.1M | 12.0% | | Diluted EPS | $1.93 | $1.50 | 28.7% | - The fair value of the loan and finance receivable portfolio grew to $3.94 billion as of June 30, 2024, up from $3.09 billion a year prior146 - The delinquency rate for loans over 30 days past due decreased to 7.5% at the end of Q2 2024 from 7.7% at the end of Q2 2023159 Non-GAAP Financial Measures The company presents non-GAAP measures, with Q2 2024 Adjusted Earnings at $61.6 million ($2.21 per share) and Adjusted EBITDA at $162.5 million, providing additional insight into core operating performance Reconciliation to Adjusted Earnings (in thousands, except per share) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | | :--- | :--- | :--- | | Net income | $53,911 | $48,145 | | Adjusted earnings | $61,638 | $55,270 | | Diluted earnings per share | $1.93 | $1.50 | | Adjusted earnings per share | $2.21 | $1.72 | Reconciliation to Adjusted EBITDA (in thousands) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | | :--- | :--- | :--- | | Net income | $53,911 | $48,145 | | Adjusted EBITDA | $162,529 | $126,461 | | Adjusted EBITDA as a % of total revenue | 25.9% | 25.3% | Liquidity and Capital Resources As of June 30, 2024, Enova held $271.3 million in cash and $610.8 million in total funding capacity, with no recourse debt due until September 2025, despite $200.8 million in share repurchases - The company has no recourse debt obligations due until September 2025 and believes it has sufficient liquidity for the foreseeable future195 - As of July 22, 2024, the company had $482.4 million in funding capacity from loan securitization facilities and $81.4 million available under its Credit Agreement197 - The company repurchased $200.8 million of common stock in the first six months of 2024 under its share repurchase program200 Item 4. Controls and Procedures Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2024, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that as of June 30, 2024, the company's disclosure controls and procedures are effective215 - No changes occurred during the quarter ended June 30, 2024, that materially affected the company's internal control over financial reporting216 PART II. OTHER INFORMATION Item 1. Legal Proceedings The company is defending a 2018 lawsuit filed by the Commonwealth of Virginia against its subsidiary, alleging violations of the Virginia Consumer Protection Act, with claims believed to be without merit - The company is defending a lawsuit from the Commonwealth of Virginia filed in 2018 concerning lending practices, believing the claims are without merit85 Item 1A. Risk Factors No material changes have occurred to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 - No material changes from the Risk Factors described in the Annual Report on Form 10-K for the fiscal year ended December 31, 2023217 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds During Q2 2024, the company repurchased 1,032,159 shares at an average price of $60.89 per share, with approximately $52.5 million remaining for future repurchases Share Repurchases - Q2 2024 | Period | Total Shares Purchased | Average Price Paid Per Share | Approx. Dollar Value Remaining Under Plan (in thousands) | | :--- | :--- | :--- | :--- | | April 2024 | 308,285 | $61.33 | $95,559 | | May 2024 | 411,470 | $61.44 | $71,126 | | June 2024 | 312,404 | $59.74 | $52,464 | | Total Q2 | 1,032,159 | $60.89 | $52,464 | - The Board of Directors authorized a new $300.0 million share repurchase program on October 24, 2023, effective through December 31, 2024223
Enova(ENVA) - 2024 Q2 - Quarterly Report