Significant Accounting Policies (Tables)
|
12 Months Ended |
Dec. 31, 2020 |
Accounting Policies [Abstract] |
|
Summary of Discontinued Operations in Financial Statements |
The following table provides the financial results of the U.K. businesses, which meet the criteria of discontinued operations and, therefore, are excluded from the Company's results of continuing operations (in thousands):
|
|
Year Ended December 31, |
|
|
|
2020 |
|
|
2019(1) |
|
|
2018 |
|
Revenue |
|
$ |
— |
|
|
$ |
83,772 |
|
|
$ |
141,453 |
|
Cost of Revenue |
|
|
— |
|
|
|
45,507 |
|
|
|
67,595 |
|
Gross Profit |
|
|
— |
|
|
|
38,265 |
|
|
|
73,858 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Marketing |
|
|
— |
|
|
|
13,239 |
|
|
|
29,309 |
|
Operations and technology |
|
|
— |
|
|
|
43,338 |
|
|
|
34,116 |
|
General and administrative |
|
|
— |
|
|
|
3,011 |
|
|
|
1,917 |
|
Depreciation and amortization |
|
|
— |
|
|
|
889 |
|
|
|
990 |
|
Total Expenses |
|
|
— |
|
|
|
60,477 |
|
|
|
66,332 |
|
(Loss) Income from Operations |
|
|
— |
|
|
|
(22,212 |
) |
|
|
7,526 |
|
Interest income, net |
|
|
— |
|
|
|
6 |
|
|
|
16 |
|
Foreign currency transaction loss, net |
|
|
— |
|
|
|
(1 |
) |
|
|
(2 |
) |
Impairment charges upon placement into administration |
|
|
(393 |
) |
|
|
(97,513 |
) |
|
|
— |
|
(Loss) Income before Income Taxes |
|
|
(393 |
) |
|
|
(119,720 |
) |
|
|
7,540 |
|
(Benefit from) provision for income taxes |
|
|
(93 |
) |
|
|
(28,316 |
) |
|
|
1,014 |
|
Net (loss) income from discontinued operations |
|
$ |
(300 |
) |
|
$ |
(91,404 |
) |
|
$ |
6,526 |
|
(1) |
Includes results of the U.K. businesses from January 1, 2019 to October 25, 2019 |
|
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash |
The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the consolidated balance sheets (in thousands):
|
|
December 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
Cash and cash equivalents |
|
$ |
297,273 |
|
|
$ |
35,895 |
|
|
$ |
28,114 |
|
Restricted cash |
|
|
71,927 |
|
|
|
45,069 |
|
|
|
22,169 |
|
Total cash, cash equivalents and restricted cash |
|
$ |
369,200 |
|
|
$ |
80,964 |
|
|
$ |
50,283 |
|
|
Schedule of Property and Equipment Estimated Useful Lives |
Depreciation expense is generally provided on a straight-line basis, using the following estimated useful lives:
Computer hardware and software |
|
3 to 5 years |
Furniture, fixtures and equipment |
|
3 to 7 years |
Leasehold improvements (1) |
|
3 to 10 years |
(1) |
Leasehold improvements are depreciated over the lesser of the estimated useful life, remaining lease term, or 10 years. |
|
Schedule of Components of Accumulated Other Comprehensive Income (Loss), Net of Tax |
The following table sets forth the components of accumulated other comprehensive loss, net of tax, for the year ended December 31, 2019 and 2018(in thousands):
|
|
Foreign |
|
|
|
|
|
|
|
currency |
|
|
|
|
|
|
|
translation |
|
|
|
|
|
|
|
gain (loss) |
|
|
Total |
|
Balance at December 31, 2017 |
|
$ |
(7,086 |
) |
|
$ |
(7,086 |
) |
Other comprehensive loss from continuing operations, before reclassifications and tax |
|
|
(2,405 |
) |
|
|
(2,405 |
) |
Tax impact |
|
|
519 |
|
|
|
519 |
|
Other comprehensive loss from discontinued operations, before reclassifications and tax |
|
|
(6,009 |
) |
|
|
(6,009 |
) |
Tax impact |
|
|
982 |
|
|
|
982 |
|
Australia and Canada liquidation (1) |
|
|
2,343 |
|
|
|
2,343 |
|
Tax impact |
|
|
(527 |
) |
|
|
(527 |
) |
Reclassification of certain deferred tax effects (2) |
|
|
(1,622 |
) |
|
|
(1,622 |
) |
Balance at December 31, 2018 |
|
$ |
(13,805 |
) |
|
$ |
(13,805 |
) |
Other comprehensive loss from continuing operations, before reclassifications and tax |
|
|
(671 |
) |
|
|
(671 |
) |
Tax impact |
|
|
124 |
|
|
|
124 |
|
Other comprehensive gain from discontinued operations, before reclassifications and tax |
|
|
1,551 |
|
|
|
1,551 |
|
Tax impact |
|
|
(364 |
) |
|
|
(364 |
) |
Placement of U.K. businesses into administration(3) |
|
|
13,188 |
|
|
|
13,188 |
|
Tax impact |
|
|
(3,089 |
) |
|
|
(3,089 |
) |
Balance at December 31, 2019 |
|
$ |
(3,066 |
) |
|
$ |
(3,066 |
) |
(1) |
Amount represents the reclassification of foreign currency translation losses from AOCI to the consolidated statements of income due to the liquidation of the Company’s Australian and Canadian businesses. |
(2) |
Amount represents the reclassification of stranded tax effects from AOCI to retained earnings resulting from the change in the federal corporate income tax rate under the Tax Cuts and Jobs Act. |
(3) |
Amount represents the reclassification of foreign currency translation losses from AOCI to the consolidated statements of income due to the placement of the U.K. businesses into administration. |
|
Schedule of Reconciliation of Numerators and Denominators of Basic and Diluted Earnings per Share Computations |
The following table sets forth the reconciliation of numerators and denominators of basic and diluted earnings per share computations for the years ended December 31, 2020, 2019 and 2018 (in thousands, except per share amounts):
|
|
Year Ended December 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
Numerator: |
|
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations |
|
$ |
378,144 |
|
|
$ |
128,016 |
|
|
$ |
63,572 |
|
Net (loss) income from discontinued operations |
|
|
(300 |
) |
|
|
(91,404 |
) |
|
|
6,526 |
|
Net Income |
|
$ |
377,844 |
|
|
$ |
36,612 |
|
|
$ |
70,098 |
|
Denominator: |
|
|
|
|
|
|
|
|
|
|
|
|
Total weighted average basic shares |
|
|
31,897 |
|
|
|
33,715 |
|
|
|
33,993 |
|
Shares applicable to stock-based compensation |
|
|
405 |
|
|
|
683 |
|
|
|
1,183 |
|
Total weighted average diluted shares |
|
|
32,302 |
|
|
|
34,398 |
|
|
|
35,176 |
|
Earnings per common share – basic: |
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
11.86 |
|
|
$ |
3.80 |
|
|
$ |
1.87 |
|
Discontinued operations |
|
|
(0.01 |
) |
|
|
(2.71 |
) |
|
|
0.19 |
|
Earnings per common share – basic |
|
$ |
11.85 |
|
|
$ |
1.09 |
|
|
$ |
2.06 |
|
Earnings per common share – diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
11.71 |
|
|
$ |
3.72 |
|
|
$ |
1.81 |
|
Discontinued operations |
|
|
(0.01 |
) |
|
|
(2.66 |
) |
|
|
0.18 |
|
Earnings per common share – diluted |
|
$ |
11.70 |
|
|
$ |
1.06 |
|
|
$ |
1.99 |
|
|
Summary of Impact of Adoption ASU 2016-13 |
The following table summarizes the impact of adoption on the consolidated balance sheet as of January 1, 2020 (in thousands):
|
|
Increase |
|
|
|
(decrease) |
|
Assets |
|
|
|
|
Loans and finance receivables at fair value |
|
$ |
124,933 |
|
Total assets |
|
$ |
124,933 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
Accounts payable and accrued expenses |
|
$ |
(4,486 |
) |
Deferred tax liabilities, net |
|
|
30,478 |
|
Total liabilities |
|
|
25,992 |
|
Stockholders' equity: |
|
|
|
|
Retained earnings |
|
|
98,941 |
|
Total stockholders' equity |
|
|
98,941 |
|
Total liabilities and stockholders' equity |
|
$ |
124,933 |
|
|