Enova Reports Fourth Quarter and Full Year 2018 Results

• Fourth quarter 2018 revenue grew 28% compared to a year ago, reaching a record $313 million, and adjusted earnings per share and adjusted EBITDA grew 100% and 27%, respectively
• Compared to a year ago, fourth quarter 2018 line of credit revenue grew 41% to $107 million, and installment loan and receivables purchase agreement revenue grew 29% to $148 million
• Total loans and finance receivables outstanding grew 22% year-over-year to $1.053 billion at the end of the fourth quarter, driven by near-prime installment loan portfolio growth of 24% to $475 million

CHICAGO (January 31, 2019) — Enova International (NYSE: ENVA), a leading financial technology and analytics company offering consumer and small business loans and financing, today announced financial results for the quarter and year ended December 31, 2018.

“Our fourth quarter results capped off another terrific year for Enova, marked by stable credit, strong demand and solid execution,” said David Fisher, Enova’s CEO. “We delivered record revenue while effectively managing the business to drive solid bottom line results. We are pleased with the momentum entering 2019, and we expect to continue producing long-term sustainable and profitable growth.”

Fourth Quarter 2018 Summary

• Total revenue of $313 million in the fourth quarter of 2018 increased 28% from $244 million in the fourth quarter of 2017.
• Gross profit margin was 43.3% in the fourth quarter of 2018, compared to 47.7% in the fourth quarter of 2017.
• Net income of $8.7 million, or $0.25 per diluted share, in the fourth quarter of 2018 increased from $6.9 million, or $0.20 per diluted share, in the fourth quarter of 2017.
• Fourth quarter 2018 adjusted EBITDA of $48 million, a non-GAAP measure, increased from $38 million in the fourth quarter of 2017.
• Adjusted earnings of $18.2 million, or $0.52 per diluted share, a non-GAAP measure, in the fourth quarter of 2018 increased from adjusted earnings of $8.9 million, or $0.26 per diluted share, in the fourth quarter of 2017.

Full Year 2018 Summary

• Total revenue of $1.114 billion in 2018 increased 32% from $844 million in 2017.
• Gross profit margin was 48.7% in 2018, compared to 53.0% in 2017.
• Net income of $70 million, or $1.99 per diluted share, in 2018 increased from $29 million, or $0.86 per diluted share, in 2017.
• Adjusted EBITDA of $211 million, a non-GAAP measure, in 2018 increased from $158 million in 2017.
• Adjusted earnings of $91 million, or $2.58 per diluted share, a non-GAAP measure, in 2018 increased from adjusted earnings of $47 million, or $1.37 per diluted share, in 2017.

“We are pleased to report another strong quarter, with results meeting or exceeding our expectations,” said Steve Cunningham, CFO of Enova. “During 2018 we saw solid growth, continued diversification, meaningful operating leverage and improvements in our liquidity position and cost of funds. Our business model and balance sheet have us well positioned for continued success in 2019.”

Enova ended the fourth quarter of 2018 with unrestricted cash and cash equivalents of $53 million. As of December 31, 2018, the company had total debt outstanding of $858 million, which included $116 million outstanding under Enova’s $575 million securitization facilities. During the fourth quarter, Enova generated $217 million of cash flow from operations.

Share Repurchase Program

Enova completed its previously announced $25 million share repurchase program earlier this year. During the first quarter of 2019, the company’s Board of Directors authorized a new share repurchase program for up to $50 million of Enova’s outstanding common stock through December 31, 2020.

Outlook

For the first quarter of 2019, Enova expects total revenue of $280 million to $300 million, GAAP diluted earnings per share of $0.78 to $0.99, adjusted EBITDA of $63 million to $73 million and adjusted earnings per share of $0.85 to $1.06.

For the full year 2019, Enova expects total revenue of $1.25 billion to $1.31 billion, GAAP diluted earnings per share of $2.49 to $3.13, adjusted EBITDA of $230 million to $260 million and adjusted earnings per share of $2.76 to $3.40.

For information regarding the non-GAAP financial measures discussed in this release, please see “Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Financial Measures” below.

Conference Call

Enova will host a conference call to discuss its results at 4 p.m. Central Time / 5 p.m. Eastern Time today, Thursday, January 31st. The live webcast of the call can be accessed at the Enova Investor Relations website at http://ir.enova.com, along with the company’s earnings press release and supplemental financial information. The U.S. dial-in for the call is 1-855-560-2575 (1-412-542-4161 for non-U.S. callers). Please ask to be joined to the Enova International call. A replay of the conference call will be available until February 7, 2019, at 10:59 p.m. Central Time / 11:59 p.m. Eastern Time, while an archived version of the webcast will be available on the Enova Investor Relations website for 90 days. The U.S. dial-in for the conference call replay is 1-877-344-7529 (1-412-317-0088). The replay access code is 10127834.

About Enova

Enova (NYSE: ENVA) is a leading provider of online financial services to non-prime consumers and small businesses, providing access to credit powered by its advanced analytics, innovative technology, and world-class online platform and services. Enova has provided more than 5 million customers around the globe with access to more than $20 billion in loans and financing. The financial technology company has a portfolio of trusted brands serving consumers, including CashNetUSA® , NetCredit® , On Stride Financial® , Pounds to Pocket® , QuickQuid® and Simplic® ; two brands serving small businesses, Headway Capital® and The Business Backer® ; and offers online lending platform services to lenders. Through its Enova Decisions™ brand, it also delivers on-demand decision-making technology and real-time predictive analytics services to clients. You can learn more about the company and its brands at www.enova.com

Cautionary Statement Concerning Forward Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about the business, financial condition and prospects of Enova. These forward-looking statements give current expectations or forecasts of future events and reflect the views and assumptions of Enova’s senior management with respect to the business, financial condition and prospects of Enova as of the date of this release and are not guarantees of future performance. The actual results of Enova could differ materially from those indicated by such forward-looking statements because of various risks and uncertainties applicable to Enova’s business, including, without limitation, those risks and uncertainties indicated in Enova’s filings with the Securities and Exchange Commission (“SEC”), including our annual report on Form 10-K, quarterly reports on Forms 10-Q and current reports on Forms 8-K. These risks and uncertainties are beyond the ability of Enova to control, and, in many cases, Enova cannot predict all of the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. When used in this release, the words “believes,” “estimates,” “plans,” “expects,” “anticipates” and similar expressions or variations as they relate to Enova or its management are intended to identify forward-looking statements. Enova cautions you not to put undue reliance on these statements. Enova disclaims any intention or obligation to update or revise any forward-looking statements after the date of this release.

Non-GAAP Financial Measures

In addition to the financial information prepared in conformity with generally accepted accounting principles, or GAAP, Enova provides historical non-GAAP financial information. Management believes that presentation of non-GAAP financial information is meaningful and useful in understanding the activities and business metrics of Enova’s operations. Management believes that these non-GAAP financial measures reflect an additional way of viewing aspects of Enova’s business that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business.

Management provides non-GAAP financial information for informational purposes and to enhance understanding of Enova’s GAAP consolidated financial statements. Readers should consider the information in addition to, but not instead of or superior to, Enova’s financial statements prepared in accordance with GAAP. This non-GAAP financial information may be determined or calculated differently by other companies, limiting the usefulness of those measures for comparative purposes.

Combined Loans and Finance Receivables

The combined loans and finance receivables measures are non-GAAP measures that include loans and finance receivables that Enova owns or has purchased and loans that Enova guarantees. Management believes these non-GAAP measures provide investors with important information needed to evaluate the magnitude of potential receivable losses and the opportunity for revenue performance of the loans and finance receivable portfolio on an aggregate basis. Management also believes that the comparison of the aggregate amounts from period to period is more meaningful than comparing only the amounts reflected on Enova’s consolidated balance sheet since both revenue and cost of revenue are impacted by the aggregate amount of receivables owned by Enova and those guaranteed by Enova as reflected in its consolidated financial statements.

Adjusted Earnings Measures

In addition to reporting financial results in accordance with GAAP, Enova has provided adjusted earnings and adjusted earnings per share, or, collectively, the Adjusted Earnings Measures, which are non-GAAP measures. Management believes that the presentation of these measures provides investors with greater transparency and facilitates comparison of operating results across a broad spectrum of companies with varying capital structures, compensation strategies, derivative instruments and amortization methods, which provides a more complete understanding of Enova’s financial performance, competitive position and prospects for the future. Management also believes that investors regularly rely on non-GAAP financial measures, such as the Adjusted Earnings Measures, to assess operating performance and that such measures may highlight trends in Enova’s business that may not otherwise be apparent when relying on financial measures calculated in accordance with GAAP. In addition, management believes that the adjustments shown below are useful to investors in order to allow them to compare Enova’s financial results during the periods shown without the effect of each of these expense items.

Adjusted EBITDA Measures

Adjusted EBITDA is a non-GAAP measure that Enova defines as earnings excluding depreciation, amortization, interest, foreign currency transaction gains or losses, taxes and stock-based compensation. In addition, management believes that the adjustments for losses on early extinguishment of debt, certain acquisition-related costs and a discrete regulatory settlement shown below are useful to investors in order to allow them to compare our financial results during the periods shown without the effect of the expense items. Adjusted EBITDA margin is a non-GAAP measure that Enova defines as Adjusted EBITDA as a percentage of total revenue. Management believes Adjusted EBITDA Measures are used by investors to analyze operating performance and evaluate Enova’s ability to incur and service debt and Enova’s capacity for making capital expenditures. Adjusted EBITDA Measures are also useful to investors to help assess Enova’s estimated enterprise value.