CURO (US:CURO)2023-03-10 00:59Revenue Composition - Installment loans accounted for 63.6%, 54.9%, and 53.5% of consolidated revenue for the years ended December 31, 2020, 2021, and 2022, respectively[32]. - Approximately 60.0%, 64.3%, and 75.4% of consolidated revenues were generated from U.S. services for the years ended December 31, 2022, 2021, and 2020, respectively[39]. - Insurance revenues increased to $88.5 million in 2022 from $49.4 million in 2021 and $35.6 million in 2020[34]. Loan Composition - Revolving LOC loans in Canada Direct Lending comprised 93.8%, 94.2%, and 91.8% of total loans as of December 31, 2020, 2021, and 2022, respectively[33]. - Canada POS Lending Revolving LOC gross loans receivable increased by $374.3 million, or 81.5%, from December 31, 2021[33]. Store Operations - As of December 31, 2022, the company operated a total of 645 stores, with 496 in the U.S. and 149 in Canada[40]. - As of December 31, 2022, the company had approximately 4,000 full-time employees, with 2,600 working in branches[61]. Debt and Financing - The company raised over $4.9 billion in debt financing across 18 offerings since 2010, including over $1.0 billion in 2022[47]. - The company transitioned all debt facilities from LIBOR to SOFR as of December 31, 2022[301]. - A hypothetical 1% increase in the average market interest rate would lead to an increase in annual interest expense of $9.1 million[299]. Regulatory Environment - The company is subject to extensive federal and provincial regulations in Canada, including a criminal rate of interest cap of 60% on unsecured loans[72]. Seasonal Trends - The direct lending businesses typically experience the highest demand in the third and fourth quarters of the year[59]. - Canada POS Lending sales experienced a typical seasonality, with 31% of 2022 sales occurring in Q4, and net sales increased by 89% compared to 2021[60]. Employee Relations and Diversity - The company has a good employee relations environment, with no employees unionized or covered by collective bargaining agreements[61]. - The company has launched a Diversity and Inclusion Council to address social issues and support vulnerable communities[62]. Corporate Changes - The company is closing its Canadian corporate office in 2023 but will retain its Flexiti corporate office in Toronto[61]. Financial Risk Management - The company does not use derivative financial instruments for speculative purposes, focusing instead on hedging against interest rate and foreign exchange risks[298][303]. - Revenue from Canadian operations would decrease by $56.1 million if average foreign exchange rates declined by 10% against the U.S. dollar in 2022[302].