Atlanticus (ATLC) GlobeNewswire News Room·2024-11-07 23:43Core Viewpoint - Atlanticus Holdings Corporation reported strong financial results for Q3 2024, highlighting significant growth in managed receivables, operating revenue, and net income, while maintaining a conservative credit posture and consistent profitability [1][3][19]. Financial and Operating Highlights - Managed receivables increased by 14.6% to 351.0 million [2][11]. - Net income attributable to common shareholders was 1.27 per diluted share, reflecting a 22.9% increase [2][19]. - The company served over 380,000 new accounts during the quarter, bringing the total to 3.7 million accounts [2][8]. Management Commentary - The CEO expressed satisfaction with the continued growth in revenue, managed receivables, and serviced accounts, emphasizing a return on equity exceeding 20% [3][4]. - The company noted that real wage gains for consumers have contributed to stable performance, despite slightly higher delinquency rates than pre-pandemic levels [4]. Growth Opportunities - The company is optimistic about growth opportunities across its three primary product lines: general purpose credit cards, point of sale finance, and healthcare payments [5][10]. - The pipeline of new partners and offerings positions the company for above-market long-term growth [5]. Revenue Composition - Total operating revenue includes interest income, finance charges, late fees, and other fees related to credit products [9][11]. - The company anticipates continued growth in interest income and related fees for 2024, driven by the addition of new retail partners and growth within existing partnerships [10][11]. Interest Expense and Debt - Interest expense for Q3 2024 was 28.3 million in Q3 2023, primarily due to increased outstanding debt and borrowing costs [12][13]. - Outstanding notes payable increased to 203.7 million for Q3 2024, driven by growth in underlying receivables and regulatory changes affecting late fees [14][15]. Operating Expenses - Total operating expenses rose by 11.7% compared to Q3 2023, influenced by variable servicing costs and inflationary pressures [16][17]. - The company expects continued increases in servicing costs and salaries in 2024 as receivables grow [17][18]. Shareholder Returns - The company repurchased and retired 11,193 shares of common stock at a cost of $0.3 million during the quarter [20].