CURO Group Holdings Corp. Announces
Second Quarter 2020 Financial Results
Wichita, Kansas--August 3, 2020-CURO Group Holdings Corp. (NYSE: CURO) (“CURO” or the “Company”), a market leader in providing short-term credit to underbanked consumers, today announced financial results for its second quarter ended June 30, 2020.
“The second quarter of 2020 was one of the most challenging in our history and I couldn't be prouder of our 3,900 team members, who managed our business and served our customers with urgency, effectiveness and compassion. In the quarter, lower customer loan demand and our decision to tighten credit resulted in a 20.9% sequential decline in loan balances and a 27.5% decline year-over-year,” said Don Gayhardt, President and Chief Executive Officer. “This drove year-over-year revenue and net revenue declines of $81.8 million and $20.5 million, respectively. However, our cost reduction measures limited the decrease in Adjusted EBITDA to just $2.6 million compared to last year’s second quarter while Adjusted EPS increased by $0.01 compared to the prior-year period. Our Canadian business continues to perform well. Loan balances declined just 4.4% year-over-year and NCO rates improved 28.4%, leading to Canada Adjusted EBITDA expansion of $4.4 million, or 37.6%.
“Second quarter trends suggested that our customers are managing their finances prudently as demonstrated by high repayment rates on higher cost products, lower open-end line utilization and modest loan demand. Our historically low delinquency levels reflected our customers’ strong financial positions entering the pandemic, reduced personal spending during the stay-at-home orders and the impact of stimulus payments and other governmental initiatives to support the economy. Lower loan originations and strong credit metrics strengthened our liquidity position - our cash balance increased to $269.3 million and our unused revolving credit capacity extended our total liquidity to $363.4 million at quarter end.
“Uncertainty surrounding the North American economy’s reopening and overall direction may continue to weigh on our loan growth in the near term. However, with a solid balance sheet and substantial liquidity, we are well positioned to participate in a recovery and grow market share. We are hopeful that the growth we experienced in customer application volumes through July accelerate across the balance of 2020.
“We are focused on several growth initiatives outside of our core lending business that are benefiting from the current environment. We intend to capitalize on the increased comfort level that our Canadian customers have with online financial services by driving more business to our online channel, which we believe offers the best user experience in the market. Our Revolve demand deposit account and Opt+ general purpose reloadable card products offered through our bank sponsors are experiencing greater traction with online customers, which extends the reach of these products far beyond the four walls of our stores. We are encouraged by the continued growth of Katapult, where we have a 42.5% ownership interest. Katapult’s eCommerce origination volume more than tripled year-to-date compared to the same period a year ago, driving positive earnings for the first time.”
The following information was filed by Curo Group Holdings Corp. (CURO) on Monday, August 3, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.