CURO (CURO) - 2020 Q2 - Quarterly Report

Revenue Performance - Total revenue for the three months ended June 30, 2020, declined by $81.8 million, or 30.9%, to $182.5 million compared to the prior-year period[193]. - U.S. revenues decreased by 34.6%, while Canadian revenues declined by 16.7% during the same period[193]. - Total revenue for the six months ended June 30, 2020, was $463.3 million, a decline of $78.9 million, or 14.6%, compared to the prior-year period[200]. - Revenue from California Installment loans accounted for 9.9% and 9.2% of total revenue for the three and six months ended June 30, 2020, respectively, down from 13.2% and 13.4% in the prior year[189]. - Open-End revenues grew by $19.9 million, or 18.4%, compared to the prior-year period, driven by a $12.7 million, or 5.8%, increase in Canada[203]. - Single-Pay revenue dropped by $22.8 million, or 50.1%, with loan balances declining by $40.0 million, or 52.5% year over year[195]. - Ancillary revenues decreased by 15.4% compared to the prior-year period, primarily due to COVID-19 impacts[197]. - Non-Single-Pay revenue increased by $1.6 million, or 4.6%, to $36.8 million, driven by growth in related loan balances despite COVID-19 impacts[282]. Loan Performance - Unsecured Installment revenues fell by $51.7 million, or 42.3%, and Secured Installment revenues decreased by $6.7 million, or 25.6% due to COVID-19 impacts and regulatory changes[194]. - Gross combined loans receivable decreased by $186.3 million, or 27.5%, to $490.6 million as of June 30, 2020, from $676.9 million as of June 30, 2019[213]. - The NCO rate for Company Owned Unsecured Installment gross loans receivables increased approximately 300 bps year-over-year due to changes in loan balances[218]. - Secured installment gross combined loans receivable decreased by 37.7% year-over-year, with California accounting for 39.6% of total loans as of June 30, 2020[225]. - The average Secured Installment gross combined loans receivable was $64,520 in Q2 2020, down from $82,408 in Q1 2020[227]. - Company-owned originations for Q2 2020 were $24,444,000, down from $55,941,000 in Q1 2020[223]. - The company granted concessions on more than 50,000 loans, representing 11% of active loans, and waived over $3.7 million in payments and fees as part of the Customer Care Program[187]. Expenses and Costs - Non-advertising costs of providing services decreased by $8.8 million, or 15.0%, to $49.6 million for the three months ended June 30, 2020[243]. - Advertising costs decreased by $7.0 million, or 55.0%, year-over-year due to COVID-19 impacts[244]. - Corporate, district, and other expenses increased by $1.5 million, or 4.2%, to $36.8 million for the three months ended June 30, 2020[246]. - Total operating expenses for the six months ended June 30, 2020, were $99.1 million, a decrease of $7.5 million, or 7.1%, compared to $106.6 million for the same period in 2019[262]. - Non-advertising costs of providing services for the six months ended June 30, 2020, were $70.9 million, a decrease of $15.3 million, or 17.8%, compared to $86.2 million for the same period in 2019[274]. Income and Profitability - Net income from continuing operations for Q2 2020 was $21,080,000, an increase of 19.3% compared to $17,667,000 in Q2 2019[304]. - Adjusted Net Income for Q2 2020 was $22,170,000, a decrease of 9.3% from $24,437,000 in Q2 2019[304]. - The company reported a net income increase of 23.2% for the six months ended June 30, 2020, reaching $57,093,000 compared to $46,340,000 in the same period of 2019[304]. - The provision for losses decreased by $61.3 million, or 54.7%, to $50.7 million for the three months ended June 30, 2020 compared to the prior-year period[242]. - The provision for losses for the six months ended June 30, 2020, decreased by $50.0 million, or 28.1%, compared to the prior-year period, primarily due to lower loan volume[273]. Financial Position - Total assets amounted to $1,127,159,000, with cash and cash equivalents at $269,342,000[326]. - Total liabilities were reported at $1,034,217,000, with debt comprising $799,828,000[326]. - Stockholders' equity stood at $92,942,000, reflecting a deficit in certain subsidiaries[326]. - Total liquidity as of June 30, 2020, was $363,400,000, with cash on hand amounting to $269,300,000[321]. - The company issued $690,000,000 in 8.25% Senior Secured Notes due September 2025[319]. Regulatory and Market Conditions - The California Consumer Privacy Act (CCPA) became effective on January 1, 2020, with enforcement authority granted to the California Attorney General as of July 1, 2020[358]. - The CFPB rescinded mandatory underwriting provisions of the 2017 Final CFPB Rule on July 7, 2020, but did not alter payment provisions[357]. - The company is currently reviewing the impact of the LIBOR phase-out, expected to be completed by the end of 2021, but does not anticipate a material effect[365]. - The company continues to face uncertainty regarding macroeconomic factors that could affect future goodwill impairment assessments[356].