Note 3 - Segment Reporting

6 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

3. Segment Reporting

We operate primarily within one industry consisting of two reportable segments by which we manage our business. Our two reportable segments are: CaaS and Auto Finance.

As of both June 30, 2022 and December 31, 2021, we did not have a material amount of long-lived assets located outside of the U.S.

We measure the profitability of our reportable segments based on their income after allocation of specific costs and corporate overhead; however, our segment results do not reflect any charges for internal capital allocations among our segments. Overhead costs are allocated based on headcounts and other applicable measures to better align costs with the associated revenues.

Summary operating segment information (in thousands) is as follows:

Three Months Ended June 30, 2022	CaaS			Auto Finance			Total
Revenue:
Consumer loans, including past due fees	$	182,828		$	8,719		$	191,547
Fees and related income on earning assets		65,819			20			65,839
Other revenue		12,169			241			12,410
Other non-operating revenue		228			11			239
Total revenue		261,044			8,991			270,035
Interest expense		(18,552	)		(373	)		(18,925	)
Provision for losses on loans, interest and fees receivable recorded at net realizable value		—			(182	)		(182	)
Changes in fair value of loans, interest and fees receivable and notes payable associated with structured financings recorded at fair value		(146,559	)		—			(146,559	)
Net margin	$	95,933		$	8,436		$	104,369
Income before income taxes	$	39,979		$	2,561		$	42,540
Income tax expense	$	(8,100	)	$	(643	)	$	(8,743	)

Six Months Ended June 30, 2022	CaaS			Auto Finance			Total
Revenue:
Consumer loans, including past due fees	$	339,293		$	17,060		$	356,353
Fees and related income on earning assets		120,499			38			120,537
Other revenue		22,167			509			22,676
Other non-operating revenue		263			37			300
Total revenue		482,222			17,644			499,866
Interest expense		(35,715	)		(620	)		(36,335	)
Provision for losses on loans, interest and fees receivable recorded at net realizable value		—			(329	)		(329	)
Changes in fair value of loans, interest and fees receivable and notes payable associated with structured financings recorded at fair value		(251,239	)		—			(251,239	)
Net margin	$	195,268		$	16,695		$	211,963
Income (loss) before income taxes	$	83,577		$	(3,403	)	$	80,174
Income tax (expense) benefit	$	(2,582	)	$	960		$	(1,622	)
Total assets	$	2,025,867		$	90,587		$	2,116,454

Three Months Ended June 30, 2021	CaaS			Auto Finance			Total
Revenue:
Consumer loans, including past due fees	$	114,256		$	8,398		$	122,654
Fees and related income on earning assets		49,535			18			49,553
Other revenue		6,999			313			7,312
Other non-operating revenue		2,569			17			2,586
Total revenue		173,359			8,746			182,105
Interest expense		(13,515	)		(275	)		(13,790	)
Provision for losses on loans, interest and fees receivable recorded at net realizable value		(11,296	)		200			(11,096	)
Changes in fair value of loans, interest and fees receivable and notes payable associated with structured financings recorded at fair value		(58,763	)		—			(58,763	)
Net margin	$	89,785		$	8,671		$	98,456
Income before income taxes	$	43,972		$	2,971		$	46,943
Income tax expense	$	(9,390	)	$	(727	)	$	(10,117	)

Six Months Ended June 30, 2021	CaaS			Auto Finance			Total
Revenue:
Consumer loans, including past due fees	$	208,366		$	16,584		$	224,950
Fees and related income on earning assets		86,538			35			86,573
Other revenue		11,237			654			11,891
Other non-operating revenue		3,404			22			3,426
Total revenue		309,545			17,295			326,840
Interest expense		(25,559	)		(529	)		(26,088	)
Provision for losses on loans, interest and fees receivable recorded at net realizable value		(15,303	)		72			(15,231	)
Changes in fair value of loans, interest and fees receivable and notes payable associated with structured financings recorded at fair value		(86,254	)		—			(86,254	)
Net margin	$	182,429		$	16,838		$	199,267
Income before income taxes	$	93,276		$	5,464		$	98,740
Income tax expense	$	(16,553	)	$	(1,334	)	$	(17,887	)
Total assets	$	1,338,017		$	81,834		$	1,419,851