ELEVATE CREDIT, INC. (ELVT) Tops Q3 EPS by 1c, Miss on Revenues
ELEVATE CREDIT, INC. (NYSE: ELVT) reported Q3 EPS of $0.01, $0.01 better than the analyst estimate of $0.00. Revenue for the quarter came in at $172.9 million versus the consensus estimate of $175.06 million.
Third Quarter 2017 Financial Highlights
- Nearly 15% sequential quarterly revenue growth: Revenues increased 14.9% from the second quarter of 2017 and are up 16.6% on a 2017 year-to-date basis versus 2016. Revenues for the third quarter of 2017 totaled $172.9 million, which was a 12.3% increase from $153.9 million for the prior-year period.
- Over 22% year-over-year growth in combined loans receivable-principal: Combined loans receivable - principal, totaled $548.9 million, a 22.4% increase from $448.3 million for the prior-year period.
- Continued stable credit quality: The ending combined loan loss reserve, as a percentage of combined loans receivable, was 14.9%, lower than the 16.6% reported for the prior-year period due to the improved credit quality and the continued maturation of the loan portfolio. Net charge-offs as a percentage of revenue totaled 46.4%, while total loan loss provision was 55.7% of revenues which was at the high end of our targeted range of 45%-55% due to the strong growth in combined loans receivable - principal experienced during the third quarter of 2017. The Company typically experiences strong loan growth and a corresponding increase in total loan loss provision during the third quarter of every year.
- Customer acquisition costs below targeted range: The total number of new customer loans for the third quarter of 2017 was approximately 91,000 with an average customer acquisition cost of $222, below our targeted range of $250-$300.
- Third consecutive quarter of net income: Third quarter 2017 net income totaled $0.6 million, or $0.01 per diluted share, versus a net loss of $16.2 million, or $(1.25) per diluted share, for the third quarter of 2016.
- YTD Adjusted EBITDA exceeds FY 2016 total: 2017 YTD Adjusted EBITDA totaled $62.5 million, exceeding the $60.4 million in Adjusted EBITDA for fiscal year 2016. Adjusted EBITDA for the third quarter of 2017 totaled $17.7 million versus $3.2 million for the third quarter of 2016. The 2017 YTD Adjusted EBITDA margin was 13.0%.
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