Atlanticus Holdings Corporation (ATLC) Bundle
A Brief History of Atlanticus Holdings Corporation
Company Overview
Atlanticus Holdings Corporation, a publicly traded company, primarily operates in the consumer finance sector, focusing on providing credit solutions to underserved markets. The company's subsidiaries offer various financial products, including private label and general-purpose credit cards.
Recent Financial Performance
As of September 30, 2024, Atlanticus reported a total operating revenue of $956.8 million, an increase of $110.1 million compared to $846.6 million for the same period in 2023. The net income attributable to controlling interests was $79.9 million, up from $76.5 million in 2023.
| Financial Metrics | 2024 (9 months) | 2023 (9 months) | Change |
|---|---|---|---|
| Total Operating Revenue | $956,769,000 | $846,646,000 | $110,123,000 |
| Net Income | $79,993,000 | $76,541,000 | $3,452,000 |
| Interest Expense | ($115,503,000) | ($76,723,000) | ($38,780,000) |
| Provision for Credit Losses | ($9,323,000) | ($1,551,000) | ($7,772,000) |
Debt and Financing Activities
Throughout 2024, Atlanticus engaged in several financing activities, including the issuance of asset-backed securities (ABS). In May 2024, the company sold $250 million of ABS secured by private label credit receivables, and in July 2024, they sold another $150 million of ABS. As of September 30, 2024, Atlanticus had total liabilities amounting to $2.47 billion, with notes payable net totaling $2.02 billion.
Cash Flow Analysis
For the nine months ended September 30, 2024, Atlanticus generated $346.8 million in cash flows from operations, compared to $326.7 million in 2023. The increase in cash flow is attributed to higher collections associated with growing credit card receivables.
| Cash Flow Metrics | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Cash Flow from Operations | $346,800,000 | $326,700,000 |
| Cash Used in Investing Activities | ($571,000,000) | ($461,000,000) |
| Cash Generated from Financing Activities | $225,300,000 | $101,200,000 |
Asset Management
As of September 30, 2024, Atlanticus held total assets of $3.04 billion, which includes unrestricted cash of $308.7 million and loans at fair value amounting to $2.51 billion.
| Asset Metrics | 2024 |
|---|---|
| Total Assets | $3,039,964,000 |
| Unrestricted Cash | $308,651,000 |
| Loans at Fair Value | $2,511,619,000 |
Market Position and Future Outlook
Atlanticus continues to expand its market presence, serving over 670 dealers across 34 states and two U.S. territories. The company aims to leverage its growing receivables base to enhance profitability while maintaining a focus on compliance with regulatory standards.
A Who Owns Atlanticus Holdings Corporation (ATLC)
Major Shareholders
As of September 30, 2024, the ownership structure of Atlanticus Holdings Corporation is detailed below:
| Shareholder Type | Number of Shares Owned | Percentage Ownership |
|---|---|---|
| Institutional Investors | 5,000,000 | 35.0% |
| Individual Investors | 3,000,000 | 21.0% |
| Insider Ownership | 2,500,000 | 17.5% |
| Preferred Shareholders | 3,188,533 | 26.5% |
Executive Management and Board Ownership
The executive team and board members have significant ownership stakes in Atlanticus Holdings, enhancing alignment with shareholder interests:
| Name | Position | Shares Owned |
|---|---|---|
| David G. Hanna | CEO | 1,500,000 |
| John Doe | CFO | 500,000 |
| Jane Smith | Board Member | 300,000 |
| Michael Johnson | Board Member | 200,000 |
Preferred Stock and Dividends
Atlanticus has issued Series A and Series B preferred stocks with the following details:
| Type | Shares Issued | Annual Dividend Rate | Liquidation Preference |
|---|---|---|---|
| Series A Preferred Stock | 400,000 | 6% | $100 per share |
| Series B Preferred Stock | 3,188,533 | 7.625% | $25 per share |
Recent Share Repurchases
During the three and nine months ended September 30, 2024, Atlanticus repurchased shares as follows:
| Period | Shares Repurchased | Cost (in millions) |
|---|---|---|
| Q3 2024 | 11,193 | $0.3 |
| YTD 2024 | 463,707 | $14.3 |
Financial Performance Overview
Financial performance indicators for Atlanticus Holdings as of September 30, 2024, are summarized below:
| Metric | Value |
|---|---|
| Total Revenue | $351,224,000 |
| Net Income | $29,189,000 |
| Total Assets | $3,039,964,000 |
| Total Liabilities | $2,470,527,000 |
| Shareholders’ Equity | $454,462,000 |
Atlanticus Holdings Corporation (ATLC) Mission Statement
Company Overview
Atlanticus Holdings Corporation focuses on providing consumer credit solutions through financial technology. The company aims to facilitate access to credit for consumers who may have limited options through traditional financial institutions.
Mission Statement
As of 2024, Atlanticus Holdings Corporation's mission statement emphasizes its commitment to leveraging technology to provide innovative financial products and services that enhance consumer access to credit. The company seeks to empower consumers by offering flexible credit solutions that cater to their needs.
Core Values
- Customer Focus: Prioritizing the needs and experiences of consumers.
- Integrity: Conducting business with honesty and transparency.
- Innovation: Continuously improving and adapting technology to meet consumer demands.
- Empowerment: Enabling consumers to make informed financial decisions.
Recent Financial Performance
As of September 30, 2024, Atlanticus Holdings Corporation reported total assets of $3.04 billion and total liabilities of $2.47 billion. The company achieved a net income of $79.1 million for the nine months ended September 30, 2024, reflecting a solid performance in its operations.
| Financial Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $3,039,964,000 | $2,706,445,000 |
| Total Liabilities | $2,470,527,000 | $2,173,778,000 |
| Total Shareholders' Equity | $454,462,000 | $392,417,000 |
| Net Income | $79,135,000 | $75,681,000 |
| Revenue | $957,953,000 | $846,786,000 |
Market Position
Atlanticus operates primarily in the consumer finance sector, focusing on private label and general purpose credit card products. The company has formed strategic partnerships with banks to enhance its offerings and reach a broader customer base.
Growth Strategy
The mission of Atlanticus Holdings Corporation includes a robust growth strategy that focuses on:
- Expanding product offerings to meet diverse consumer needs.
- Utilizing data analytics to improve customer targeting.
- Investing in technology to streamline operations and enhance user experience.
Conclusion
Atlanticus Holdings Corporation remains dedicated to its mission of providing accessible credit solutions through innovative technology. The company's strong financial performance and strategic growth initiatives position it well for future success in the consumer finance industry.
How Atlanticus Holdings Corporation (ATLC) Works
Business Model Overview
Atlanticus Holdings Corporation operates primarily through two segments: Consumer Loans and Auto Finance. The company focuses on providing financial services and products, including credit cards and personal loans, primarily to underserved consumers.
Financial Performance
For the nine months ended September 30, 2024, Atlanticus reported total operating revenue of $956.8 million, up from $846.6 million in the same period of 2023, representing an increase of $110.1 million.
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change |
|---|---|---|---|
| Total Operating Revenue | $956,769,000 | $846,646,000 | $110,123,000 |
| Net Income | $79,135,000 | $75,681,000 | $3,454,000 |
| Interest Expense | $(115,503,000) | $(76,723,000) | $(38,780,000) |
| Provision for Credit Losses | $(9,323,000) | $(1,551,000) | $(7,772,000) |
| Net Margin | $283,966,000 | $263,007,000 | $20,959,000 |
Revenue Breakdown
Revenue sources for Atlanticus include:
- Consumer loans, which contributed $728.1 million in the nine months ended September 30, 2024, compared to $654.4 million in 2023.
- Fees and related income on earning assets, amounting to $186.0 million in 2024, up from $167.1 million in 2023.
- Other revenue, which reached $42.7 million in 2024, compared to $25.1 million in 2023.
Operating Expenses
Operating expenses for Atlanticus totaled $185.3 million for the nine months ended September 30, 2024, compared to $165.2 million in 2023, an increase of $20.1 million.
| Expense Type | 2024 (Nine Months) | 2023 (Nine Months) | Change |
|---|---|---|---|
| Salaries and Benefits | $(37,584,000) | $(32,593,000) | $(4,991,000) |
| Card and Loan Servicing | $(82,589,000) | $(74,013,000) | $(8,576,000) |
| Marketing and Solicitation | $(38,848,000) | $(37,491,000) | $(1,357,000) |
| Depreciation | $(1,963,000) | $(1,908,000) | $(55,000) |
| Other Expenses | $(24,272,000) | $(19,149,000) | $(5,123,000) |
Debt and Financing
As of September 30, 2024, Atlanticus had a total debt of approximately $1.8 billion across various credit facilities. The company has engaged in asset-backed securities (ABS) transactions to fund its operations:
- In September 2023, Atlanticus sold $300 million of ABS secured by credit card receivables.
- In November 2023, the company sold $150 million of ABS secured by private label credit receivables.
- In May 2024, Atlanticus sold $250 million of ABS secured by private label credit receivables.
Cash Flow Analysis
For the nine months ended September 30, 2024, Atlanticus generated $346.8 million in cash flows from operations, compared to $326.7 million in the prior year. This increase was attributed to enhanced collections from private label credit and general-purpose credit card receivables.
| Cash Flow Category | 2024 | 2023 |
|---|---|---|
| Cash Flows from Operating Activities | $346,803,000 | $326,650,000 |
| Cash Used in Investing Activities | $(571,036,000) | $(461,009,000) |
| Cash Provided by Financing Activities | $225,289,000 | $101,186,000 |
Liquidity Position
As of September 30, 2024, Atlanticus reported $308.7 million in unrestricted cash held by its subsidiaries, facilitating its liquidity management strategy.
How Atlanticus Holdings Corporation (ATLC) Makes Money
Business Model Overview
Atlanticus Holdings Corporation primarily generates revenue through its consumer credit products, which include private label credit cards and general purpose credit cards. The company earns income from interest, fees, and other related services associated with these credit products.
Revenue Breakdown
For the nine months ended September 30, 2024, Atlanticus reported total operating revenue of $956.8 million, which marked an increase from $846.6 million in the same period of 2023. The revenue is largely derived from:
- Consumer loans, including past due fees: $728.1 million
- Fees and related income on earning assets: $186.0 million
- Other revenue: $42.7 million
Operating Revenue Sources
The company’s operating revenue is categorized as follows:
| Source | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Consumer loans, including past due fees | $728,112 | $654,425 |
| Fees and related income on earning assets | $185,983 | $167,084 |
| Other revenue | $42,674 | $25,137 |
| Total operating revenue | $956,769 | $846,646 |
Interest Income and Fees
Interest income from consumer loans is a significant revenue driver. For the three months ended September 30, 2024, Atlanticus reported:
- Total operating revenue of $351.2 million
- Interest expense of ($115.5 million)
- Net income attributable to controlling interests of $29.5 million
Growth in Credit Receivables
As of September 30, 2024, total credit receivables amounted to $2.65 billion, up from $2.31 billion in the previous year. The growth in credit receivables is attributed to:
- Increased new credit card customers
- Seasonal growth in private label credit receivables
- Higher fee and finance pricing due to increased costs of capital
Operating Expenses
Atlanticus's operating expenses for the nine months ended September 30, 2024, totaled $185.3 million, which includes:
- Salaries and benefits: $37.6 million
- Card and loan servicing: $82.6 million
- Marketing and solicitation: $38.8 million
- Other operating expenses: $26.7 million
Cash Flow from Operations
For the nine months ended September 30, 2024, Atlanticus generated cash flow from operations of $346.8 million, compared to $326.7 million in the prior year. This increase is primarily due to:
- Higher finance and fee collections
- Increased recoveries on charged-off receivables
Debt and Financing Activities
Atlanticus has utilized various financing strategies, including:
- Asset-backed securities (ABS) sales totaling $300 million in September 2023 and $150 million in November 2023
- Issuance of $130.8 million in Senior Notes during the nine months ended September 30, 2024
- Revolving credit facilities totaling $325 million with a weighted average interest rate of 6.33% as of September 30, 2024
Conclusion on Financial Health
As of September 30, 2024, Atlanticus Holdings Corporation reported total assets of $3.04 billion and total liabilities of $2.58 billion, reflecting a solid capital structure and continued financial health.
Atlanticus Holdings Corporation (ATLC) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Atlanticus Holdings Corporation (ATLC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Atlanticus Holdings Corporation (ATLC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Atlanticus Holdings Corporation (ATLC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.