Community Choice Financial Inc.

CIK:0001528061|SEC Filings

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues:
Total Revenues	$ 88,046	$ 97,644	$ 257,022	$ 264,164
Operating expenses:
Salaries	17,177	18,040	51,670	52,829
Provision for loan losses	28,809	43,133	74,267	86,532
Occupancy	6,378	6,626	18,950	19,857
Advertising and marketing	1,363	3,362	3,870	5,720
Lease termination	164		730	959
Depreciation and amortization	1,929	2,311	6,256	7,176
Other	10,385	14,113	32,394	38,411
Total operating expenses	66,205	87,585	188,137	211,484
Operating gross profit	21,841	10,059	68,885	52,680
Corporate and other expenses:
Corporate expenses	16,086	21,882	50,847	62,358
Lease termination				1,762
Depreciation and amortization	1,074	1,287	3,496	3,777
Interest expense, net	13,916	12,210	39,713	36,012
Loss on debt extinguishment	10,832		10,832
Total corporate and other expenses	41,908	35,379	104,888	103,909
Loss from continuing operations, before tax	(20,067)	(25,320)	(36,003)	(51,229)
Provision for income taxes		333		999
Net loss	(20,067)	(25,653)	(36,003)	(52,228)
Finance receivable fees
Revenues:
Total Revenues	51,088	57,808	148,330	154,789
Credit service fees
Revenues:
Total Revenues	19,421	22,026	56,108	55,311
Check cashing fees
Revenues:
Total Revenues	11,821	11,192	35,075	35,097
Card fees
Revenues:
Total Revenues	2,216	2,046	6,675	6,166
Other
Revenues:
Total Revenues	$ 3,500	$ 4,572	$ 10,834	$ 12,801

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities
Net loss	$ (36,003)	$ (52,228)
Adjustments to reconcile net loss to net cash provided by operating activities:
Provision for loan losses	74,267	86,532
Loss on disposal of assets	390	2,280
Loss on debt extinguishment	10,832
Depreciation	9,207	10,580
Amortization of note discount and deferred debt issuance costs	5,777	2,988
Amortization of intangibles	545	373
Deferred income taxes		635
Stock-based compensation	25	42
Changes in assets and liabilities:
Short-term investments		500
Card related pre-funding and receivables	202	424
Other assets	(260)	637
Deferred revenue	(1,901)	(1,783)
Accrued interest	6,258	6,570
Money orders payable	(329)	153
Lease termination payable	(263)	654
Accounts payable and accrued expenses	(6,761)	11,454
Net cash provided by operating activities	61,986	69,811
Cash flows from investing activities
Net receivables originated	(62,105)	(96,400)
Net acquired assets, net of cash		(373)
Purchase of leasehold improvements and equipment	(5,143)	(6,315)
Net cash used in investing activities	(67,248)	(103,088)
Cash flows from financing activities
Proceeds from subsidiary note	3,500	20,000
Payments on subsidiary note	(89)	(7,385)
Proceeds from secured notes payable	42,000
Payments on capital lease obligations	(362)	(923)
Net advances (payments) on lines of credit	(44,000)	14,150
Debt issuance costs	(11,865)	(3,932)
Net cash provided by (used in) financing activities	(10,816)	21,910
Net decrease in cash and cash equivalents and restricted cash	(16,078)	(11,367)
Cash and cash equivalents and restricted cash:
Beginning	71,212	109,348
Ending	$ 55,134	$ 97,981

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current Assets
Cash and cash equivalents	$ 50,914	$ 66,627
Restricted cash	4,220	4,585
Finance receivables, net of allowance for loan losses of $13,767 and $13,517	79,054	89,707
Card related pre-funding and receivables	860	1,062
Other current assets	16,021	15,271
Total current assets	151,069	177,252
Noncurrent Assets
Finance receivables, net of allowance for loan losses of $1,853 and $2,810	3,123	4,632
Property, leasehold improvements and equipment, net	22,394	26,848
Other intangible assets	379	924
Security deposits	2,260	2,750
Total assets	179,225	212,406
Current Liabilities
Accounts payable and accrued liabilities	32,805	39,566
Money orders payable	6,840	7,169
Accrued interest	11,403	5,145
Current portion of capital lease obligation	9	371
Current portion of line of credit, net of deferred issuance costs of $34 and $-0-	2,966
Current portion of subsidiary notes payable, net of deferred issuance costs of $1,126 and $1	63,273	118
Current portion of senior secured notes, net of deferred issuance costs and unamortized discount of $3,446	243,844
Deferred revenue	2,535	2,535
Total current liabilities	363,675	54,904
Noncurrent Liabilities
Lease termination payable	555	818
Line of credit, net of deferred issuance costs of $-0- and $1,871		45,129
Subsidiary notes payable, net of deferred issuance costs of $12 and $762	958	61,077
Secured notes payable, net of deferred issuance cost of $4,827 and $-0-	37,173
Senior secured notes, net of deferred issuance costs of $109 and $1,664	12,391	248,126
Deferred revenue	5,619	7,520
Total liabilities	420,371	417,574
Commitments and Contingencies
Stockholders' Equity
Preferred stock, par value $.01 per share, 3,000 shares authorized, no shares issued and outstanding
Common stock, par value $.01 per share, 300,000 authorized shares and 7,990 outstanding shares at September 30, 2018 and December 31, 2017	90	90
Additional paid-in capital	129,700	129,675
Retained deficit	(370,886)	(334,883)
Treasury stock	(50)	(50)
Total stockholders' deficit	(241,146)	(205,168)
Total liabilities and stockholders' equity	$ 179,225	$ 212,406