Atlanticus Reports Second Quarter 2024 Financial Results

Core Insights - Atlanticus Holdings Corporation reported strong financial results for Q2 2024, with managed receivables increasing by 11.1% to $2.4 billion and total operating revenue rising by 8.6% to $315.6 million compared to Q2 2023 [2][6][10] - The company achieved a net income attributable to common shareholders of $18.0 million, or $0.99 per diluted share, reflecting a decrease of 4.4% from the previous year [18][25] - A significant partnership was announced with Synchrony, enhancing the company's position in the point-of-sale credit market and providing access to millions of declined applications annually [4][5] Financial and Operating Highlights - Managed receivables increased to $2.4 billion, with a net receivables growth of over $241.1 million from June 30, 2023 [8] - Total operating revenue for the quarter was $315.6 million, up from $290.8 million in the same quarter last year, marking an 8.6% increase [6][10] - The company served over 325,000 new accounts during the quarter, bringing the total to 3.6 million accounts [2][8] Management Commentary - The President and CEO expressed satisfaction with the company's consistent growth over fifty consecutive quarters in revenue, managed receivables, and serviced accounts, despite a moderation in consumer spending [3] - The company is optimistic about long-term growth opportunities in the second look point-of-sale market as prime providers reduce their presence [4] Revenue and Expenses - Interest expense rose significantly to $37.9 million, up 56.7% from $24.2 million in Q2 2023, primarily due to increased debt and borrowing costs [12][13] - Total operating expenses increased by 8.9% to $61.5 million, driven by higher servicing costs and inflationary pressures [16][17] Net Income and Shareholder Returns - Net income attributable to common shareholders decreased by 4.4% to $18.0 million, with diluted earnings per share at $0.99 [18][25] - The company repurchased 49,203 shares of common stock at a cost of $1.3 million during the quarter [19]