Atlanticus Holdings Corporation (NASDAQ: ATLC) (“Atlanticus,”
“the Company”, “we,” “our” or “us”), a financial technology company
which enables its bank, retail and healthcare partners to offer
more inclusive financial services to millions of everyday
Americans, today announced its financial results for the second
quarter ended June 30, 2022. An accompanying earnings presentation
is available in the “Investors” section of the Company’s website at
www.atlanticus.com or by clicking here.
Second Quarter 2022 Highlights (all comparisons to the prior
year period)
- Total operating revenue increased 50.3% to $269.8 million.
- Purchase volume increased 40.2% to $769.1 million.
- Total number of accounts serviced(1) at period end increased
47.0% to 3.2 million.
- Over 290,000 new serviced accounts added during the
quarter.
- Managed receivables(2) increased 53.0% to $1.9 billion, and
18.5% from December 31
- Net earnings of $33.8 million, or $1.46 per diluted common
share.
- Repurchased and retired 355,036 shares of our common stock at
an aggregate cost of $12.9 million.
(1) In our calculation of total accounts
serviced, we include all accounts with account activity and
accounts that have open lines of credit at the end of the
referenced period.
(2) Managed receivables is a non-GAAP
financial measure and excludes the results of our Auto Finance
receivables. See “Non-GAAP Financial Measures” for important
additional information.
For the Three Months Ended
June 30,
($ In Thousands)
2022
2021
% Change
Total operating revenue
$
269,796
$
179,519
50.3
Other non-operating revenue
239
2,586
(90.8
)
Total Revenue
270,035
182,105
48.3
Interest expense
(18,925
)
(13,790
)
37.2
Provision for losses on loans, interest
and fees receivable recorded at net realizable value
(182
)
(11,096
)
(98.4
)
Changes in fair value of loans, interest
and fees receivable and notes payable associated with structured
financings recorded at fair value
(146,559
)
(58,763
)
nm
Net margin
$
104,369
$
98,456
6.0
Total Operating Expense
$
61,829
$
46,065
34.2
Loss on repurchase and redemption of
convertible senior notes
$
—
$
5,448
nm
Net income
$
33,797
$
36,826
(8.2
)
Net loss attributable to noncontrolling
interests
228
50
nm
Net income attributable to controlling
interests
34,025
36,876
(7.7
)
Preferred dividends and discount
accretion
(6,257
)
(4,738
)
32.1
Net income attributable to controlling
interests to common shareholders
$
27,768
$
32,138
(13.6
)
Per Share Data
Net income attributable to common
shareholders per common share—basic
$
1.88
$
2.12
(11.3
)
Net income attributable to common
shareholders per common share—diluted
$
1.46
$
1.56
(6.4
)
*nm = not meaningful
Management Commentary
Jeff Howard, President and Chief Executive Officer at Atlanticus
stated, "We are excited to have achieved yet another important
milestone during the second quarter of 2022, now servicing more
than 3 million accounts as we seek to empower better financial
outcomes for everyday Americans. We are pleased with our financial
results which reflect continued growth in both revenue and managed
receivables of over 50%. This growth is indicative of the value we
bring our bank, retail, and healthcare partners as we work to meet
the needs of their customers.”
“While we are pleased with our second quarter results and our
long term prospects for continued growth, we are mindful of the
economic environment and the impact it has on the customers we
serve. In the second quarter we began tightening underwriting
criteria and as a result, we expect slower growth near term. Given
our experience managing through uncertain economic times, we
believe we are well positioned should a downturn occur. Any
short-term macro-economic headwinds do not detract from our belief
in the value we bring our partners, the customers we serve and the
long-term value creation capability of our team and our
credit-as-a-service platform,” continued Mr. Howard.
Managed Receivables
Managed receivables increased over 53.0% to $1.9 billion as of
June 30, 2022, from $1.2 billion as of June 30, 2021 as total
accounts serviced increased 47.0% to 3.2 million. Managed
receivables also increased 18.5% or $297.9 million from December
31, 2021. This increase is primarily due to continued strength in
consumer spending behavior on our private label and general-purpose
credit cards during the second quarter of 2022 for both new and
existing accounts serviced. While we expect continued period over
period growth in the receivable loan balances, we do expect that
the pace of growth in these receivables will slow.
Total revenue
Total operating revenue consists of interest income, finance
charges, fees, ancillary income, interchange and servicing income
on loan portfolios.
Total operating revenue increased 50.3% to $269.8 million in the
quarter. This revenue increase was primarily driven by higher
growth in our acquisitions of general purpose credit card
receivables (which tend to have higher yields and corresponding
charge-offs) than in our acquisitions of private label credit
receivables. While we noted some disruptions in consumer spending
behavior due to the COVID-19 pandemic and related economic impacts,
including inflation, labor shortages and supply chain disruptions,
we are currently experiencing continued period-over-period growth
in private label credit and general purpose credit card receivables
and to a lesser extent in our CAR receivables—growth which we
expect to result in net period-over-period growth (albeit at a
slower pace of growth) in our total interest income and related
fees for these operations for 2022.
Interest expense
Interest expense was $18.9 million for the quarter, compared to
$13.8 million in the prior year period. Outstanding notes payable,
net of unamortized debt issuance costs and discounts, associated
with our private label credit and general purpose credit card
platform increased to $1,359.7 million as of June 30, 2022 from
$911.9 million as of June 30, 2021. The majority of this increase
in outstanding debt relates to the addition of multiple revolving
credit facilities during 2021. Additionally, the issuance of $150.0
million of senior notes in November 2021 also served to increase
interest expense during the period, as expected.
Offsetting these increases in interest expense was an overall
decrease in the weighted average cost of funds, coupled with the
repurchase and redemption of our convertible senior notes. Recent
increases in the federal funds rate have thus far had a minimal
impact on our interest expense as over 90% of interest rates on our
outstanding debt are fixed. We anticipate additional debt financing
over the next few quarters as we continue to grow receivables
coupled with increased effective interest rates resulting from both
recently enacted and anticipated federal funds rate increases. As
such we expect our quarterly interest expense to be above that
experienced in the prior periods for these operations.
Provision for losses on loans, interest and fees receivable
recorded at net realizable value
Provision for losses on loans, interest and fees receivable
recorded at net realizable value decreased to $182 thousand for the
quarter, compared to $11.1 million in the prior year period. This
reduction is due to the adoption of fair value accounting for the
majority of our outstanding receivables. We do not anticipate
having meaningful impacts from this line item for 2022.
Changes in fair value of loans, interest and fees receivable
and notes payable associated with structured financings recorded at
fair value
Changes in fair value of loans, interest and fees receivable and
notes payable associated with structured financings recorded at
fair value increased to $146.6 million in the quarter, compared to
$58.8 million in the prior year period, largely driven by growth in
receivables coupled with increased fee billings on those
receivables and inclusive of modeled market degradation in our
forecasts to reflect the possibility of delinquency rates
increasing in the near term (and the corresponding increase in
charge-offs and decrease in payments) above the level that
historical and current trends would suggest. Fee billings on our
fair value receivables increased from $129.1 million for the six
months ended June 30, 2021 to $412.4 million for the six months
ended June 30, 2022. Offsetting this increase in Changes in fair
value of loans, interest and fees receivable and notes payable
associated with structured financings recorded at fair value was a
reduction in the discount rate applied to the net cash flows
associated with these investments. The reduction in this discount
rate for the period ended June 30, 2022 reflects the asset level
returns we believe would be required by market participants.
Total operating expense
Total operating expense increased 34.2% to $61.8 million for the
quarter, compared to $46.1 million in the prior year period,
primarily driven by salaries, reflecting growth in the number of
employees and related benefit cost. Additionally, card and loan
servicing expenses including marketing and solicitation costs and
other third-party expenses increased the total operating expense in
the quarter due to growth in receivables. While we expect to see
continued increases in these variable related expenses, their
relative impact as a percentage of our average managed receivables
is expected to decline.
Net Income Attributable to Common Shareholders
Net income attributable to common shareholders decreased 13.6%
to $27.8 million from $32.1 million in the prior year period.
Net income attributable to common shareholders per basic common
share was $1.88 compared to $2.12 in the prior year period.
Net income attributable to common shareholders per common share
diluted decreased to $1.46 compared to $1.56 in the prior year
period.
Share Repurchases
During the three and six months ended June 30, 2022, we
repurchased and contemporaneously retired 355,036 and 1,360,248
shares of our common stock at an aggregate cost of $12,861,000 and
$78,075,000, respectively, pursuant to both open market and private
purchases and the return of stock by holders of equity incentive
awards to pay tax withholding obligations.
About Atlanticus Holdings
Corporation
Empowering Better Financial Outcomes for Everyday Americans
Atlanticus’ technology allows bank, retail, and healthcare
partners to offer more inclusive financial services to everyday
Americans through the use of proprietary analytics. We apply the
experience gained and infrastructure built from servicing over 18
million customers and $27 billion in consumer loans over our
25-year operating history to support lenders that originate a range
of consumer loan products. These products include retail and
healthcare private label credit and general purpose credit cards
marketed through our omnichannel platform, including retail
point-of-sale, healthcare-point of-care, direct mail solicitation,
internet-based marketing, and partnerships with third parties.
Additionally, through our CAR subsidiary, Atlanticus serves the
individual needs of automotive dealers and automotive non-prime
financial organizations with multiple financing and service
programs.
Forward-Looking Statements
This press release contains forward-looking statements that
reflect the Company's current views with respect to, among other
things, its business, operations, financial performance, amount and
pace of growth of managed receivables, total interest income and
related fees and charges, debt financing, liquidity, interest
expense, interest rates, underwriting, consumer performance trends
and economic developments. You generally can identify these
statements by the use of words such as “outlook,” “potential,”
“continue,” “may,” “seek,” “approximately,” “predict,” “believe,”
“expect,” “plan,” “intend,” “estimate” or “anticipate” and similar
expressions or the negative versions of these words or comparable
words, as well as future or conditional verbs such as “will,”
“should,” “would,” “likely” and “could.” These statements are
subject to certain risks and uncertainties that could cause actual
results to differ materially from those included in the
forward-looking statements. These risks and uncertainties include
those risks described in the Company's filings with the Securities
and Exchange Commission and include, but are not limited to, risks
related to the extent and duration of the COVID-19 pandemic and its
impact on the Company, bank partners, merchant partners, consumers,
loan demand, the capital markets, labor availability, supply chains
and the economy in general; the Company's ability to retain
existing, and attract new, merchant partners and funding sources;
changes in market interest rates; increases in loan delinquencies;
its ability to operate successfully in a highly regulated industry;
the outcome of litigation and regulatory matters; the effect of
management changes; cyberattacks and security vulnerabilities in
its products and services; and the Company's ability to compete
successfully in highly competitive markets. The forward-looking
statements speak only as of the date on which they are made, and,
except to the extent required by federal securities laws, the
Company disclaims any obligation to update any forward-looking
statement to reflect events or circumstances after the date on
which the statement is made or to reflect the occurrence of
unanticipated events. In light of these risks and uncertainties,
there is no assurance that the events or results suggested by the
forward-looking statements will in fact occur, and you should not
place undue reliance on these forward-looking statements.
Atlanticus Holdings
Corporation and Subsidiaries
Consolidated Statements of
Income (Unaudited)
(Dollars in thousands, except
per share data)
For the Three Months
Ended
For the Six Months
Ended
June 30,
June 30,
2022
2021
2022
2021
Revenue:
Consumer loans, including past due
fees
$
191,547
$
122,654
$
356,353
$
224,950
Fees and related income on earning
assets
65,839
49,553
120,537
86,573
Other revenue
12,410
7,312
22,676
11,891
Total operating revenue, net
269,796
179,519
499,566
323,414
Other non-operating revenue
239
2,586
300
3,426
Total revenue
270,035
182,105
499,866
326,840
Interest expense
(18,925
)
(13,790
)
(36,335
)
(26,088
)
Provision for losses on loans, interest
and fees receivable recorded at net realizable value
(182
)
(11,096
)
(329
)
(15,231
)
Changes in fair value of loans, interest
and fees receivable and notes payable associated with structured
financings recorded at fair value
(146,559
)
(58,763
)
(251,239
)
(86,254
)
Net margin
104,369
98,456
211,963
199,267
Operating expense:
Salaries and benefits
10,099
7,883
21,525
16,122
Card and loan servicing
23,997
18,212
46,672
35,599
Marketing and solicitation
20,231
13,678
40,804
23,979
Depreciation
549
320
1,142
632
Other
6,953
5,972
21,646
10,940
Total operating expense
61,829
46,065
131,789
87,272
Loss on repurchase and redemption of
convertible senior notes
—
5,448
—
13,255
Income before income taxes
42,540
46,943
80,174
98,740
Income tax expense
(8,743
)
(10,117
)
(1,622
)
(17,887
)
Net income
33,797
36,826
78,552
80,853
Net loss attributable to noncontrolling
interests
228
50
483
98
Net income attributable to controlling
interests
34,025
36,876
79,035
80,951
Preferred dividends and discount
accretion
(6,257
)
(4,738
)
(12,463
)
(9,425
)
Net income attributable to common
shareholders
$
27,768
$
32,138
$
66,572
$
71,526
Net income attributable to common
shareholders per common share—basic
$
1.88
$
2.12
$
4.50
$
4.74
Net income attributable to common
shareholders per common share—diluted
$
1.46
$
1.56
$
3.43
$
3.47
Atlanticus Holdings
Corporation and Subsidiaries
Consolidated Statements of
Cash Flows (Unaudited)
(Dollars in thousands)
For the Six Months Ended June
30,
2022
2021
Operating activities
Net income
$
78,552
$
80,853
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, amortization and accretion,
net
3,400
1,727
Provision for losses on loans, interest
and fees receivable
329
15,231
Interest expense from accretion of
discount on notes
—
435
Income from accretion of merchant fees and
discount associated with receivables purchases
(69,417
)
(50,410
)
Changes in fair value of loans, interest
and fees receivable and notes payable associated with structured
financings recorded at fair value
251,239
86,254
Amortization of deferred loan costs
2,345
2,934
Income from equity-method investments
—
(8
)
Loss on repurchase and redemption of
convertible senior notes
—
13,255
Deferred stock-based compensation
costs
2,297
1,232
Lease liability payments
(3,635
)
(5,202
)
Changes in assets and liabilities:
Increase in uncollected fees on earning
assets
(113,786
)
(36,636
)
(Decrease) increase in income tax
liability
(2,583
)
11,279
Increase (decrease) in accounts payable
and accrued expenses
6,117
(769
)
Other
(2,252
)
4,346
Net cash provided by operating
activities
152,606
124,521
Investing activities
Proceeds from equity-method investee
—
390
Proceeds from recoveries on charged off
receivables
12,847
6,626
Investments in earning assets
(1,293,526
)
(895,287
)
Proceeds from earning assets
927,169
728,533
Purchases and development of property, net
of disposals
(601
)
(95
)
Net cash used in investing activities
(354,111
)
(159,833
)
Financing activities
Noncontrolling interests contributions
4
4
Proceeds from issuance of Series B
preferred stock, net of issuance costs
—
66,148
Preferred dividends
(12,365
)
(9,325
)
Proceeds from exercise of stock
options
2,821
1,697
Purchase and retirement of outstanding
stock
(78,075
)
(601
)
Proceeds from borrowings
249,762
430,534
Repayment of borrowings
(100,914
)
(378,363
)
Net cash provided by financing
activities
61,233
110,094
Effect of exchange rate changes on
cash
(36
)
10
Net (decrease) increase in cash and cash
equivalents and restricted cash
(140,308
)
74,792
Cash and cash equivalents and restricted
cash at beginning of period
506,628
258,961
Cash and cash equivalents and restricted
cash at end of period
$
366,320
$
333,753
Supplemental cash flow
information
Cash paid for interest
$
33,162
$
23,146
Net cash income tax payments
$
4,205
$
6,608
Decrease in accrued and unpaid preferred
dividends
$
(52
)
$
(50
)
Atlanticus Holdings
Corporation and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
(Dollars in thousands)
June 30,
December 31,
2022
2021
Assets
Unrestricted cash and cash equivalents
(including $184.5 million and $209.5 million associated with
variable interest entities at June 30, 2022 and December 31, 2021,
respectively)
$
316,331
$
409,660
Restricted cash and cash equivalents
(including $25.0 million and $75.9 million associated with variable
interest entities at June 30, 2022 and December 31, 2021,
respectively)
49,989
96,968
Loans, interest and fees receivable:
Loans, interest and fees receivable, at
fair value (including $1,461.3 million and $925.5 million
associated with variable interest entities at June 30, 2022 and
December 31, 2021, respectively)
1,616,875
1,026,424
Loans, interest and fees receivable, gross
(including $369.6 million associated with variable interest
entities at December 31, 2021)
104,563
470,293
Allowances for uncollectible loans,
interest and fees receivable (including $55.1 million associated
with variable interest entities at December 31, 2021)
(1,643
)
(57,201
)
Deferred revenue (including $8.2 million
associated with variable interest entities at December 31,
2021)
(16,738
)
(29,281
)
Net loans, interest and fees
receivable
1,703,057
1,410,235
Property at cost, net of depreciation
6,794
7,335
Operating lease right-of-use assets
12,264
4,016
Prepaid expenses and other assets
28,019
15,649
Total assets
$
2,116,454
$
1,943,863
Liabilities
Accounts payable and accrued expenses
$
46,971
$
42,287
Operating lease liabilities
19,764
4,842
Notes payable, net (including $1,359.7
million and $1,223.4 million associated with variable interest
entities at June 30, 2022 and December 31, 2021, respectively)
1,429,340
1,278,864
Senior notes, net
143,668
142,951
Income tax liability
47,694
47,770
Total liabilities
1,687,437
1,516,714
Commitments and contingencies
Preferred stock, no par value, 10,000,000
shares authorized:
Series A preferred stock, 400,000 shares
issued and outstanding at June 30, 2022 (liquidation preference -
$40.0 million); 400,000 shares issued and outstanding at December
31, 2021 (1)
40,000
40,000
Class B preferred units issued to
noncontrolling interests
99,800
99,650
Shareholders' Equity
Series B preferred stock, no par value,
3,188,533 shares issued and outstanding at June 30, 2022
(liquidation preference - $79.7 million); 3,188,533 shares issued
and outstanding at December 31, 2021 (1)
—
—
Common stock, no par value, 150,000,000
shares authorized: 14,561,078 and 14,804,408 shares issued and
outstanding at June 30, 2022 and December 31, 2021,
respectively
—
—
Paid-in capital
142,343
227,763
Retained earnings
147,853
60,236
Total shareholders’ equity
290,196
287,999
Noncontrolling interests
(979
)
(500
)
Total equity
289,217
287,499
Total liabilities, preferred stock and
equity
$
2,116,454
$
1,943,863
(1) Both the Series A preferred stock and
the Series B preferred stock have no par value and are part of the
same aggregate 10,000,000 shares authorized.
At or for the three months
ended June 30,
2022
2021
Jun 30.
Mar 31.
31-Dec
Sep 30.
Total
% (1)
Total
% (1)
Total
% (1)
Total
% (1)
Period-end managed receivables
$
1,908,884
$
1,677,610
$
1,611,000
$
1,446,134
30-59 days past due
$
83,390
4.4
%
$
56,860
3.4
%
$
60,914
3.8
%
$
45,605
3.2
%
60-89 days past due
$
66,935
3.5
%
$
52,995
3.2
%
$
53,088
3.3
%
$
38,216
2.6
%
90 or more days past due
$
148,907
7.8
%
$
142,654
8.5
%
$
116,171
7.2
%
$
91,457
6.3
%
Average managed receivables
$
1,793,247
$
1,644,305
$
1,528,567
$
1,346,829
Total managed yield ratio, annualized
(2)
44.8
%
46.0
%
44.9
%
45.3
%
Combined principal net charge-off ratio,
annualized (3)
19.0
%
16.7
%
13.9
%
10.0
%
Interest expense ratio, annualized (4)
4.1
%
4.2
%
4.0
%
3.6
%
Net interest margin ratio, annualized
(5)
21.7
%
25.1
%
27.0
%
31.7
%
At or for the three months
ended June 30,
2021
2020
Jun 30.
Mar 31.
31-Dec
Sep 30.
Total
% (1)
Total
% (1)
Total
% (1)
Total
% (1)
Period-end managed receivables
$
1,247,524
$
1,092,509
$
1,090,373
$
987,385
30-59 days past due
$
36,576
1.9
%
$
21,877
1.3
%
$
31,617
2.0
%
$
20,691
1.4
%
60-89 days past due
$
33,662
1.8
%
$
16,613
1.0
%
$
22,128
1.4
%
$
15,867
1.1
%
90 or more days past due
$
55,739
2.9
%
$
53,743
3.2
%
$
48,880
3.0
%
$
39,073
2.7
%
Average managed receivables
$
1,170,017
$
1,091,441
$
1,038,879
$
943,791
Total managed yield ratio, annualized
(2)
42.9
%
42.0
%
44.0
%
39.2
%
Combined principal net charge-off ratio,
annualized (3)
10.4
%
9.7
%
9.7
%
15.6
%
Interest expense ratio, annualized (4)
4.6
%
4.4
%
4.9
%
5.3
%
Net interest margin ratio, annualized
(5)
27.9
%
27.9
%
29.4
%
18.3
%
(1) % is of Period-end managed
receivables
(2) The total managed yield ratio,
annualized is calculated using the annualized Total managed yield
as the numerator and Period-end average managed receivables as the
denominator.
(3) The Combined principal net charge-off
ratio, annualized is calculated using the annualized Combined
principal net charge-offs as the numerator and Period-end average
managed receivables as the denominator.
(4) Interest expense ratio, annualized is
calculated using the annualized interest expense associated with
the CaaS segment as the numerator and period-end average managed
receivables as the denominator.
(5) Net interest margin ratio, annualized
is calculated using the Total managed yield ratio, annualized less
the Combined principal net charge-off ratio, annualized less the
Interest expense ratio, annualized.
Calculation of Non-GAAP Financial
Measures
This press release presents information about managed
receivables, which is a non-GAAP financial measure provided as a
supplement to the results provided in accordance with accounting
principles generally accepted in the United States of America
(“GAAP”). This non-GAAP financial measure aids in the evaluation of
the performance of our credit portfolios, including our risk
management, servicing and collection activities and our valuation
of purchased receivables. The credit performance of our managed
receivables provides information concerning the quality of loan
origination and the related credit risks inherent with the
portfolios. Management relies heavily upon financial data and
results prepared on the “managed basis” in order to manage our
business, make planning decisions, evaluate our performance and
allocate resources.
This non-GAAP financial measure is presented for supplemental
informational purposes only. This non-GAAP financial measure has
limitations as an analytical tool and should not be considered in
isolation from, or as a substitute for, GAAP financial measures.
This non-GAAP financial measure may differ from the non-GAAP
financial measures used by other companies.
Below are (i) the reconciliation of Loans, interest and fees
receivable, at fair value to Loans, interest and fees receivable,
at face value (ii) the calculation of managed receivables, (iii)
the calculation of managed yield, and (iv) the calculation of
combined principal net charge-offs:
i)
At or for the Three Months
Ended
2022
2021
2020
(in Millions)
Jun. 30 (1)
Mar. 31 (1)
Dec. 31 (1)
Sep. 30 (1)
Jun. 30 (1)
Mar. 31 (1)
Dec. 31 (1)
Sept. 30 (1)
Loans, interest and fees receivable, at
fair value
$
1,616.9
$
1,405.8
$
1,026.4
$
846.2
$
644.7
$
481.4
$
417.1
$
310.8
Fair value mark against receivable (2)
$
293.0
$
272.9
$
208.9
$
182.2
$
148.6
$
112.3
$
99.0
$
71.8
Loans, interest and fees receivable, at
face value
$
1,909.9
$
1,678.7
$
1,235.3
$
1,028.4
$
793.3
$
593.7
$
516.1
$
382.6
(1)
We elected the fair value option to
account for certain loans receivable associated with our private
label credit and general purpose credit card platform that were
acquired on or after January 1, 2020. On January 1, 2022, we
elected the fair value option under ASU 2016-13 for those private
label credit and general purpose credit card receivables that were
previously accounted for under the amortized cost method.
(2)
The fair value mark against receivables
reflects the difference between the face value of a receivable and
the net present value of the expected cash flows associated with
that receivable.
ii)
At or for the Three Months
Ended
2022
2021
2020
(in Millions)
Jun. 30
(1)
Mar. 31
(1)
Dec. 31
Sep. 30
Jun. 30
Mar. 31
Dec. 31
Sept. 30
Loans, interest and fees receivable,
gross
$
—
$
—
$
375.7
$
417.8
$
454.2
$
498.8
$
574.3
$
604.8
Loans, interest and fees receivable, gross
from fair value reconciliation above
1,909.9
1,678.7
1,235.3
1,028.4
793.3
593.7
516.1
382.6
Total managed receivables
$
1,909.9
$
1,678.7
$
1,611.0
$
1,446.2
$
1,247.5
$
1,092.5
$
1,090.4
$
987.4
(1)
On January 1, 2022, we elected the fair
value option under ASU 2016-13 for those private label credit and
general purpose credit card receivables that were accounted for
under the amortized cost method.
iii)
A reconciliation of our operating revenues to comparable amounts
used in our calculation of Total managed yield ratios follows (in
millions):
At or for the Three Months
Ended
2022
2021
2020
(in Millions)
Jun. 30
Mar. 31
Dec. 31
Sep. 30
Jun. 30
Mar. 31
Dec. 31
Sept. 30
Consumer loans, including past due
fees
$
182.8
$
156.5
$
144.1
$
132.7
$
114.3
$
94.1
$
95.7
$
95.6
Fees and related income on earning
assets
65.8
54.7
53.8
54.1
49.5
37.0
31.4
35.5
Other revenue
12.2
10.0
9.7
8.4
7.0
4.2
4.8
4.5
Adjustments due to acceleration of
merchant fee discount amortization under fair value accounting
(12.1
)
1.8
(3.4
)
(14.7
)
(18.6
)
(5.5
)
(6.6
)
(19.2
)
Adjustments due to acceleration of annual
fees recognition under fair value accounting
(6.6
)
(1.3
)
(4.4
)
(12.0
)
(12.3
)
(4.6
)
(1.1
)
(7.8
)
Removal of expense accruals under GAAP
—
—
—
0.2
(0.4
)
0.2
(0.1
)
(0.7
)
Removal of finance charge-offs
(41.2
)
(32.5
)
(28.1
)
(16.3
)
(14.1
)
(10.7
)
(9.8
)
(15.5
)
Total managed yield
$
200.9
$
189.2
$
171.7
$
152.4
$
125.4
$
114.7
$
114.3
$
92.4
iv)
The calculation of Combined principal net charge-offs used in
our Combined principal net charge-off ratio, annualized is as
follows:
At or for the Three Months
Ended
2022
2021
2020
(in Millions)
Jun. 30 (1)
Mar. 31 (1)
Dec. 31
Sep. 30
Jun. 30
Mar. 31
Dec. 31
Sept. 30
Net losses on impairment of loans,
interest and fees receivable recorded at fair value
$
126.5
$
101.3
$
46.7
$
25.6
$
22.7
$
14.3
$
8.6
$
3.3
Gross charge-offs on non-fair value
accounts
—
—
38.7
27.1
27.6
26.3
30.6
54.3
Finance charge-offs (2)
(41.2
)
(32.5
)
(28.1
)
(16.3
)
(14.1
)
(10.7
)
(9.8
)
(15.5
)
Recoveries on non-fair value accounts
—
—
(4.1
)
(2.7
)
(5.7
)
(3.4
)
(4.3
)
(5.4
)
Combined principal net charge-offs
$
85.3
$
68.8
$
53.2
$
33.7
$
30.5
$
26.5
$
25.1
$
36.7
(1)
We implemented the fair value method under
ASU 2016-13 for those private label credit and general purpose
credit card receivables that were previously accounted for under
the amortized cost method.
(2)
Finance charge-offs are included as a
component of our Provision for losses on loans, interest and fees
receivable recorded at net realizable value and Changes in fair
value of loans, interest and fees receivable and notes payable
associated with structured financings recorded at fair value in the
consolidated statements of income.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220809005876/en/
Investor Relations Karin Daly, Vice President, The Equity Group
Inc. (212) 836-9623 kdaly@equityny.com
Atlanticus (NASDAQ:ATLC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Atlanticus (NASDAQ:ATLC)
Historical Stock Chart
From Jul 2023 to Jul 2024