Saturday, September 25, 2021

CURO Group Holdings Corp. Announces Second Quarter 2021 Financial Results

Must Read

“On June 1, 2021, we announced a major milestone for Flexiti with the signing of LFL Group, Canada’s largest home furnishings retailer, to a 10-year exclusive point-of-sale merchant agreement. We believe this relationship generates more than C$800 million of annualized point-of-sale finance beginning in mid-2022 when fully on-boarded. We believe that this agreement positions Flexiti to become the largest point-of-sale financing provider in Canada and are confident that it will create significant value for us. Flexiti’s originations for the second quarter increased by more than 115% year over year. We look forward to capitalizing on the significant growth that Flexiti brings to our business and to serving a larger number of Canadian consumers across all the ways through which they access credit.”

“The second quarter was very busy for us as we made significant strides on every value-creation front – growth, profitability, margins, capital and scale. We are pleased to continue to mitigate risk while driving long-term value for our stakeholders,” said Don Gayhardt, CURO’s Chief Executive Officer. “Our Canadian operations remained a bright spot in the second quarter, as our Canada Direct Lending and Canada POS segments delivered sequential loan growth of 5.1% and 9.9%, respectively. Our U.S. segment posted modest sequential loan growth in the second quarter that exceeded our expectations. With our acquisition of Flexiti in the first quarter of 2021 and the continued growth in our Canada Direct Lending segment, 76% of our company owned gross loans receivable are in Canada as of June 30, 2021, compared to 56% as of June 30, 2020.”

“We announced on July 13, 2021, the difficult decision to close 49 U.S. stores, or about 25% of our total U.S. stores, during the second and third quarters to manage local store market density and to respond to our customers’ evolving usage patterns. The impacted locations generated only 8% of our U.S. store revenue in 2020. CURO remains highly focused on serving the needs of all customers through our store and online channels. This was a consolidation of underperforming stores, not a departure from our commitment to leveraging our omni-channel competitive advantage. Since our platform allows customers to transition seamlessly online, to an adjacent store or to contact centers, this consolidation reduces annual operating costs by approximately $20 million while maximizing the likelihood of retaining a large percentage of customers from the impacted stores.”

“During the second quarter, we also began to monetize our investment in Katapult with the closing of the Katapult and FinServ merger on June 9, 2021. We received cash of $146.9 million and stock representing 20.7% fully-diluted ownership in the new public company. Our investment in Katapult allows us to continue to participate in the rapidly growing U.S. e-commerce point-of-sale finance space and we are pleased to maintain representation on the company’s board of directors.”

“We priced on July 16, 2021 a Senior Secured Notes offering of $750 million at 7.5%. This replaces our Senior Secured Notes due 2025, extends maturities to 2028, lowers the coupon by 75 bps and provides additional capital structure flexibility, particularly as it relates to the financing of our growing Canadian businesses.”

“Finally, we continued to strengthen our management team and are pleased to announce that Dan Kirsche joined us this week as our new EVP and Chief Technology Officer. Dan has a great background leading software engineering for digital marking and consumer lending organizations and is very well-suited to help us execute on our technology priorities.”

Consolidated Summary Results – Unaudited


Three Months Ended June 30,



Six Months Ended June 30,

(in thousands, except per share data)








News Highlights Business

  • CURO Group Holdings Corp. Announces Second Quarter 2021 Financial Results
  • Check all news and articles from the Business news updates.
Disclaimer: If you need to update/edit this article then please visit our help center. For Latest Updates Follow us on Google News

More Articles Like This

Latest News