As for CURO, the company sold 6.67 million shares, as expected, generating total gross proceeds of $93.4 million. The lead underwriters on the deal were Credit Suisse, Jefferies, and Stephens. Shares are slated to open for trading later this morning on the NYSE.
CURO is a consumer finance company serving a wide range of under-banked consumers in the United States, Canada and the United Kingdom. It believes that it has the only true omni-channel customer acquisition, onboarding and servicing platform that is integrated across store, online, mobile and contact center touchpoints.
As of September 30, 2017, it had 405 stores in 14 U.S. states and seven provinces in Canada. TX (92 stores), CA (36), and NV (18) are its most prominent markets in the U.S. It also lends online in 26 U.S. states, five provinces in Canada and in England, Wales, Scotland and Northern Ireland in the United Kingdom. During the third quarter of 2017, it began offering loans online in Virginia.
The company operates in the United States under two principal brands, “Speedy Cash” and “Rapid Cash,” and it launched its new brand “Avio Credit” in the United States in the second quarter of 2017. In the United Kingdom, CURO operates online as “Wage Day Advance” and, prior to their closure in the third quarter of 2017, its stores were branded “Speedy Cash.” In Canada its stores are branded “Cash Money” and, it offers “LendDirect” installment loans online. Since 2010, it has extended $13.9 billion in total credit across approximately 36.5 million total loans.
CURO serves the large and growing market of individuals who have limited access to traditional sources of consumer credit and financial services. Given its international footprint, this translates into an addressable market of approximately 140 million individuals.
Taking a look at the financials, for the nine months ended September 30, 2017, revenue increased $87.0 million, or 14.3%, to $696.6 million. U.S. revenue increased $88.8 million on volume growth, U.K. revenue increased $3.2 million, and Canada declined $5.0 million because of regulatory impacts on rates and product mix. The total cost of providing services increased $10.7 million, or 5.3%, to $213.0 million due primarily to 23.1% higher marketing spend as well as increases in occupancy, office and other operating expense. Net income improved to $12.5 million from ($7.0) million.