CURO (US:CURO)2023-08-03 20:25Financial Performance - Total revenue for the three months ended June 30, 2023, was $209,243, a decrease of 31.2% compared to $304,404 for the same period in 2022[7] - Net revenue for the six months ended June 30, 2023, was $276,186, down 25.1% from $367,523 for the same period in 2022[7] - Total revenue for the six months ended June 30, 2023 decreased by $175.9 million, or 29.6%, to $418.7 million compared to the prior-year period[168] - Net revenue for Q2 2023 was $129.645 million, down $45.213 million or 25.9% from Q2 2022[201] - Total operating expenses for Q2 2023 were $108.147 million, a decrease of $52.246 million or 32.6% compared to Q2 2022[201] Losses and Expenses - Net loss for the six months ended June 30, 2023, was $118,798, compared to a net loss of $24,744 for the same period in 2022[9] - The company reported a net loss of $59,327 million for Q2 2023, compared to a net loss of $26,080 million in Q2 2022, reflecting a decline of $33,247 million[201] - The company recorded a one-time, cumulative reduction to retained earnings of $113.0 million due to the adoption of CECL[66] - Salaries and benefits expense for the six months ended June 30, 2023 was $126.2 million, a decrease of $36.0 million, or 22.2%, compared to the prior-year period[178] - Advertising expense for the three months ended June 30, 2023 was $2.1 million, a decrease of $10.6 million, or 83.2%, compared to the prior-year period[173] Credit Losses and Provisions - Provision for losses for the three months ended June 30, 2023, was $79,598, a decrease of 38.6% compared to $129,546 for the same period in 2022[7] - The allowance for credit losses increased to $272,615 as of June 30, 2023, compared to $122,028 as of December 31, 2022, marking an increase of approximately 123.8%[22] - The provision for losses was $40,435,000 for revolving LOC and $58,172,000 for installment loans, totaling $101,235,000[97] - The company adopted the CECL model effective January 1, 2023, resulting in a $135.2 million increase to the allowance for credit losses[61] - The company recognized $26.9 million in charge-offs related to Direct Lending brands in Canada for the three months ended June 30, 2023[38] Cash and Liquidity - Cash provided by operating activities for the six months ended June 30, 2023, was $61,805, a decrease from $201,209 for the same period in 2022[9] - Cash and cash equivalents at the end of the period were $222,015, an increase from $153,014 at the end of the same period in 2022[9] - Cash and cash equivalents increased to $112,531 as of June 30, 2023, from $37,394 as of June 30, 2022, reflecting a growth of approximately 201.5%[28] - The company’s total cash, cash equivalents, and restricted cash used in the Statement of Cash Flows was $222,015 for the six months ended June 30, 2023, compared to $153,014 for the same period in 2022, reflecting an increase of approximately 45.2%[28] Assets and Liabilities - As of June 30, 2023, total assets decreased to $2,744,837 from $2,789,193 as of December 31, 2022, representing a decline of approximately 1.6%[22] - Total liabilities increased to $3,013,210 as of June 30, 2023, from $2,843,327 as of December 31, 2022, which is an increase of approximately 6%[22] - Goodwill increased slightly to $277,069 as of June 30, 2023, from $276,269 as of December 31, 2022, showing a marginal increase of approximately 0.3%[22] Shareholder Information - The company reported a basic loss per share of $(1.45) for the three months ended June 30, 2023, compared to $(0.65) for the same period in 2022[7] - The weighted average common shares outstanding increased to 41,142,023 as of June 30, 2023, from 40,518,052 as of December 31, 2022[8] - CURO Group Holdings Corp. reported 41,249,956 shares of common stock outstanding as of July 28, 2023[14] Acquisitions and Business Operations - CURO Group Holdings Corp. acquired First Heritage Credit, LLC in July 2022, enhancing its U.S. operations[19] - The company also acquired Flexiti Financial Inc. on March 10, 2021, expanding its Canadian presence[19] - The company completed the acquisition of First Heritage for a total purchase price of $140,000,000, with provisional goodwill recorded at $75,400,000[118] - The company has been serving customers in the U.S. and Canada for over 25 years, focusing on tech-enabled consumer finance solutions[53] Regulatory and Compliance - The company is classified as an accelerated filer and a smaller reporting company[13] - The company is subject to the Securities Exchange Act of 1934 and has filed all required reports[12]