CURO (US:CURO)2020-10-30 20:55Revenue Performance - Total revenue for the three months ended September 30, 2020, declined by $115.3 million, or 38.8%, to $182.0 million compared to the prior-year period[200]. - U.S. revenues decreased by 44.0%, while Canadian revenues declined by 18.3% during the same period[200]. - Total revenue for the nine months ended September 30, 2020, decreased by $194.2 million, or 23.1%, to $645.3 million compared to the prior-year period[208]. - Revenue from California Installment loans accounted for 7.6% and 8.8% of total revenue for the three and nine months ended September 30, 2020, respectively, down from 11.8% and 12.8% in the prior year[197]. - Canada revenue for the three months ended September 30, 2020, decreased by $11.0 million, or 18.3%, to $49.2 million, while sequentially it increased by $4.0 million, or 8.8%[291]. - Canada revenue for the nine months ended September 30, 2020, decreased by $12.9 million, or 7.8%, to $153.4 million[297]. Loan Performance - Unsecured Installment revenues fell by $69.8 million, or 50.9%, and Secured Installment revenues decreased by $11.6 million, or 41.0%, primarily due to COVID-19 impacts and regulatory changes in California[201]. - Single-Pay revenue declined by $24.2 million, or 49.1%, with loan volumes dropping by $36.8 million, or 47.1% year over year[202]. - Gross combined loans receivable decreased by $193.5 million, or 26.5%, to $537.2 million as of September 30, 2020, from $730.7 million as of September 30, 2019[220]. - Unsecured Installment revenue declined by $34.6 million, or 52.6%, and gross loans receivable decreased by $89.5 million, or 51.3%, due to COVID-19 impacts[223]. - Single-Pay revenue decreased by $48.6 million, or 34.3%, primarily due to a $36.8 million, or 47.1%, decline in loan volume and balances year over year[209]. - Open-End revenues increased sequentially by $2.0 million, or 3.5%, with related loan growth of $37.1 million, or 13.0%[203]. Cost Management - Non-advertising costs of providing services decreased by $11.1 million, or 18.4%, to $49.3 million for the three months ended September 30, 2020, compared to $60.3 million in the same period in 2019[250]. - Non-advertising costs of providing services for the nine months ended September 30, 2020, were $103.5 million, a decrease of $25.4 million, or 19.7%, compared to the prior year[283]. - Corporate, district, and other expenses were $36.7 million for the three months ended September 30, 2020, a decrease of $2.0 million, or 5.2%, compared to the same period in 2019[253]. - Total operating expenses for the nine months ended September 30, 2020, were $143.2 million, a decrease of $12.6 million, or 8.1%, compared to the prior year[272]. Profitability Metrics - Net income from continuing operations for the three months ended September 30, 2020, was $12,881, a decrease of $15,106 or 54.0% compared to $27,987 in 2019[315]. - Adjusted Net Income for the three months ended September 30, 2020, was $11,326, down $21,553 or 65.6% from $32,879 in 2019[315]. - EBITDA for the three months ended September 30, 2020, was $34,800, down $26,399 or 43.1% from $61,199 in 2019[317]. - Adjusted EBITDA for the three months ended September 30, 2020, was $36,115, a decrease of $30,940 or 46.1% from $67,055 in 2019[317]. - Net loss from continuing operations was $12,881,000, with a net loss attributable to CURO of $12,881,000[340]. Provision for Losses - Provision for losses decreased by $69.1 million, or 55.8%, for the three months ended September 30, 2020, due to lower loan growth and improved NCO rates[249]. - The provision for losses decreased by $119.3 million, or 35.3%, for the nine months ended September 30, 2020, primarily due to lower loan volume and NCOs[259]. - The company reported a provision for loan losses of $219.0 million for the nine months ended September 30, 2020, contributing to non-cash reconciling items totaling $256.2 million[353]. Liquidity and Capital Structure - Total liquidity as of September 30, 2020, was $302.1 million, with cash on hand of $207.1 million[331]. - The company reported a total debt of $799,460 as of September 30, 2020[332]. - The company anticipates using cash primarily for growth in working capital, capital expenditures, and debt obligations[328]. - Cash and cash equivalents increased to $75,242,000, reflecting liquidity management strategies[338]. Market and Regulatory Environment - The company is currently reviewing the impact of the California Consumer Privacy Act, effective January 1, 2020, on its operations[372]. - There have been no material changes to the quantitative and qualitative information regarding market risks since the last disclosures[374].