CCF Holdings LLC

CIK:0001766682|SEC Filings

Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenues:
Total revenues	$ 53,916	$ 84,893	$ 181,570	$ 253,882
Operating expenses:
Salaries	14,251	18,093	43,872	52,335
Provision for loan losses	8,866	31,317	34,295	77,949
Occupancy	8,821	8,931	25,970	25,877
Advertising and marketing	2,728	1,087	5,042	2,659
Depreciation and amortization	3,729	5,406	12,375	18,758
Other	7,325	7,279	23,404	21,431
Total operating expenses	45,720	72,113	144,958	199,009
Operating gross profit	8,196	12,780	36,612	54,873
Corporate and other expenses:
Corporate expenses	16,387	17,907	50,216	52,544
Depreciation and amortization	900	1,430	2,740	4,378
Interest expense, net	13,362	12,259	39,523	35,520
Goodwill impairment			11,288
Total corporate and other expenses	30,649	31,596	103,767	92,442
Loss from continuing operations, before tax	(22,453)	(18,816)	(67,155)	(37,569)
Provision for (benefit from) income taxes	(193)	6	83	23
Net loss	(22,260)	(18,822)	(67,238)	(37,592)
Other comprehensive income (loss):
Change in fair value of senior PIK notes	(517)	6,637	73,720	1,484
Other comprehensive income (loss):	(517)	6,637	73,720	1,484
Comprehensive income (loss)	(22,777)	(12,185)	6,482	(36,108)
Finance receivable fees
Revenues:
Total revenues	27,124	51,051	97,632	146,513
Credit service fees
Revenues:
Total revenues	2,938	12,579	10,613	47,373
Check cashing fees
Revenues:
Total revenues	13,649	13,292	42,986	38,586
Card fees
Revenues:
Total revenues	2,734	2,686	8,133	8,582
Other
Revenues:
Total revenues	$ 7,471	$ 5,285	$ 22,206	$ 12,828

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities
Net loss	$ (67,238)	$ (37,592)
Adjustments to reconcile net loss to net cash provided by operating activities:
Provision for loan losses	34,295	77,949
Goodwill impairment	11,288
Loss on disposal of assets	1,157	320
Gain on sale of receivables	(207)
Depreciation	14,784	22,808
Amortization of deferred debt issuance costs	1,333	754
Amortization of intangibles	330	328
Non-cash interest on PIK notes	25,340	23,068
Right of use assets - operating leases	1,987	1,962
Changes in assets and liabilities:
Card related pre-funding and receivables	174	(74)
Other assets	7,231	(3,058)
Deferred revenue	(1,901)	(1,901)
Accrued interest	(1,155)	(261)
Money orders payable	(3,952)	(262)
Lease termination payable		(387)
Deferred payroll taxes	1,831
Accounts payable and accrued expenses	(3,917)	2,071
Net cash provided by operating activities	21,380	85,725
Cash flows from investing activities
Net receivables originated	(1,387)	(76,061)
Proceeds from sale of receivables	1,368
Purchase of leasehold improvements and equipment	(6,756)	(4,814)
Net cash used in investing activities	(6,775)	(80,875)
Cash flows from financing activities
Repurchase of secured notes		(2,000)
Proceeds from subsidiary note		3,000
Payments on subsidiary note	(4,095)	(77)
Debt issuance costs	(1,943)	(1,475)
Net cash used in financing activities	(6,038)	(552)
Net increase in cash and cash equivalents and restricted cash	8,567	4,298
Cash and cash equivalents and restricted cash:
Beginning	55,106	57,383
Ending	$ 63,673	$ 61,681

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current Assets
Cash and cash equivalents	$ 60,023	$ 49,016
Restricted cash	3,650	6,090
Finance receivables, net of allowance for loan losses of $10,731 and $12,869	47,395	79,692
Card related pre-funding and receivables	796	970
Other current assets	6,695	10,273
Total current assets	118,559	146,041
Noncurrent Assets
Finance receivables, net of allowance for loan losses of $269 and $959	531	2,303
Property, leasehold improvements and equipment, net	31,391	40,577
Right of use assets - operating leases	33,967	36,728
Goodwill		11,288
Other intangible assets	2,309	2,650
Security deposits	3,596	7,238
Total assets	190,353	246,825
Current Liabilities
Accounts payable and accrued liabilities	26,278	30,195
Money orders payable	5,496	9,448
Accrued interest	10,182	2,544
Current portion of operating lease obligation	13,977	12,878
Current portion of subsidiary notes payable, net of deferred issuance cost of $984 and $1	68,987	127
Deferred revenue	2,535	2,535
Total current liabilities	127,455	57,727
Noncurrent Liabilities
Deferred payroll taxes	1,831
Operating lease obligation	22,530	24,403
Subsidiary notes payable, net of deferred issuance costs of $-0- and $372	665	74,231
Secured notes payable	40,000	40,000
Senior PIK notes, at fair value	17,070	74,243
Deferred revenue	550	2,451
Total liabilities	210,101	273,055
Commitments and Contingencies
Members' Equity
Common units, par value $-0- per unit, 850,000 Class A and 142,857 Class B authorized and outstanding units at September 30, 2020 and December 31, 2019	870	870
Retained deficit	(118,446)	(51,208)
Accumulated other comprehensive income	97,828	24,108
Total members' equity (deficit)	(19,748)	(26,230)
Total liabilities and members' equity	$ 190,353	$ 246,825