NASDAQ$ATLC

Atlanticus Holdings Corp · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported strong profitability and return on capital, driven by growth in retail credit and general purpose managed receivables, with over 350,000 new accounts served.

Atlanticus reported a 7.8% increase in total operating revenue to $290.8 million and net income attributable to common shareholders of $18.8 million, or $1.02 per diluted share. The company experienced growth across its product offerings, including retail credit and general purpose managed receivables.

  • Managed receivables increased by 13.9% to $2.2 billion.
  • Total operating revenue increased by 7.8% to $290.8 million.
  • Over 350,000 new accounts were served during the quarter, bringing the total accounts serviced to over 3.3 million.
  • Net income attributable to common shareholders was $18.8 million, or $1.02 per diluted common share.

Headline financials

Total Revenue

$291M

Previous: $270M+7.7%
EPS (adj)

$1.02

Previous: $1.46-30.1%
Purchase Volume

$696M

No prior period
Free Cash Flow

$25.1M

Previous: $34M-26.3%
Net Income

$25.1M

Previous: $34M-26.3%
Operating Income

$252M

Previous: $225M+11.8%
Gross Profit

$267M

Previous: $246M+8.5%
Cash & Equivalents

$0.00

No prior period
Total Assets

$2.45B

Previous: $2.12B+16.0%
Stock-Based Comp

$1.03M

Previous: $1.19M-13.1%

Revenue & EPS history

Atlanticus · Revenue · Quarterly

$291M

Q2 2023+7.7%vs Q2 2022
Beat estimate in 4 of 13 quarters(31%)
ActualEstimate

Forward guidance

Atlanticus expects net period-over-period growth in total interest income and related fees for the majority of 2023, albeit at a decreased growth rate compared to 2022. Growth in future periods is dependent on the addition of new retail partners and the expansion of existing relationships.

Tailwinds

  • Continued growth in retail credit offering through new client roll outs and period over period growth from existing clients.
  • General purpose managed receivables grew year-over-year due to higher credit line utilization and an increase in new customers on a quarter over quarter basis.
  • Addition of over 350,000 new accounts on behalf of bank partners in the quarter, up from approximately 220,000 in the first quarter of 2023.
  • Consumers are regaining stable performance, and the company has ample liquidity.
  • Well positioned for long term sustained growth through each of retail credit, general purpose credit card, healthcare payments and auto finance lines of business.

Headwinds

  • Navigating elevated charge-offs following consumer stress caused by rapid inflation.
  • Tightened underwriting standards adopted during the second quarter of 2022 may slow the pace of growth.
  • Recent increases in the federal funds rate have had a modest impact on interest expense, and further increases are anticipated.
  • Expect quarterly interest expense to increase compared to prior periods due to additional debt financing and increased effective interest rates.
  • Strategic underwriting tightening and selectively slowing growth in receivables and new customers.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+1.7%

Avg return

Earnings day

+2.0%

Avg return

5 days after

+11.7%

Avg return

30 days after

52%

33 / 64 earnings

Positive

+22.3%

Q4 2013

Best reaction

-21.8%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.7%-0.7%+7.5%
Q4 2025-9.0%+0.5%+20.2%
Q3 2025-5.6%-1.2%+17.7%
Q1 2025-3.3%-7.8%-1.9%
Q4 2024+0.2%-1.4%+6.5%
Q3 2024+6.9%+6.5%+51.3%
Q2 2024+5.1%+12.0%+8.2%
Q1 2024-2.6%-12.3%-8.0%
Q4 2023-8.1%-6.8%-12.8%
Q3 2023+2.9%-0.1%+2.0%
Q2 2023-7.7%-6.6%-14.9%
Q1 2023+2.7%+5.0%+35.8%
Q4 2022-2.3%-12.6%+13.1%
Q3 2022-4.6%+13.5%+4.6%
Q2 2022-4.0%-7.0%-27.0%
Q1 2022-21.8%-13.8%-8.0%
Q4 2021+17.0%+32.7%-3.3%
Q3 2021-8.1%-8.7%-28.1%
Q2 2021+3.0%+2.1%+16.2%
Q1 2021+17.4%+32.0%+37.7%
Q4 2020+9.8%+1.9%+12.8%
Q3 2020+20.4%+7.3%+59.9%
Q2 2020+7.4%+11.6%+41.9%
Q1 2020-10.7%-11.0%+57.8%
Q4 2019-1.1%-9.5%+59.5%
Q3 2019+2.6%+7.3%+15.2%
Q2 2019+11.8%+37.9%+33.2%
Q1 2019+3.9%+3.8%+3.2%
Q4 2018+0.3%-0.8%-3.1%
Q3 2018-3.7%-6.6%-7.2%
Q2 2018-6.0%+6.3%+60.6%
Q1 2018+5.0%-1.5%+9.3%
Q4 2017+5.0%-1.5%+9.3%
Q3 2017+4.7%+13.5%+11.2%
Q2 2017-2.4%-0.8%-10.4%
Q4 2016+0.0%+1.5%-1.9%
Q1 2017+0.0%+1.5%-1.9%
Q3 2016-4.4%-5.3%-11.6%
Q2 2016+0.0%-1.7%+2.4%
Q1 2016+0.3%
Q4 2015-4.8%
Q3 2015-1.3%
Q2 2015+1.3%
Q1 2015-3.5%
Q4 2014-3.5%
Q3 2014+12.7%
Q2 2014-0.7%
Q1 2014+18.5%
Q4 2013+22.3%
Q3 2013+3.6%
Q2 2013-0.3%
Q1 2013+8.7%
Q4 2012-0.3%
Q3 2012-3.8%
Q2 2012-1.0%
Q1 2011+4.7%
Q1 2012+0.7%
Q4 2011+7.3%
Q3 2011-0.3%
Q3 2010-0.3%
Q2 2011+7.5%
Q2 2010+7.5%
Q4 2010+7.5%
Q1 2010+3.6%

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