Elevate Credit Announces Fourth Quarter & FULL YEAR 2020 RESULTS

The following excerpt is from the company's SEC filing.
Continued strong credit quality and quarterly sequential loan growth
$25 million increase to share repurchase program
FORT WORTH, TX - February 8, 2021 -
Elevate Credit, Inc. (NYSE: ELVT) (“Elevate” or the “Company”), a leading tech-enabled provider of innovative and responsible online credit solutions for non-prime consumers, today announced results for the fourth quarter and full year ended December 31, 2020.
“Elevate delivered strong earnings in 2020, despite the harsh realities of the pandemic. Credit quality remained strong throughout the year and in the fourth quarter of 2020 we had sequential quart erly loan growth for the first time all year," said Elevate CEO Jason Harvison. "I would also like to emphasize our focus throughout the year on consumer relief features as our brands were able to collectively modify 80,000 non-prime consumer loans. Lastly, I would like to highlight our share repurchase program which we recently expanded to $55 million.”
Fiscal Year 2020 Financial Highlights
Net income:
Net income for the year ended December 31, 2020 totaled
$20.6 million, or $0.49
per diluted share, compared to net income of $32.2 million, or $0.73 per diluted share, in the prior year. Net income from continuing operations for the year ended December 31, 2020 (excluding the net loss from the discontinued operations of the UK) totale
d $36.2 million,
an increase
of $10.0 million, or 38%, compared to $26.2 million in the year ended December 31, 2019
Adjusted earnings:
Adjusted earnings (defined as net income from continuing operations excluding non-operating losses) were $54.7 million for the year ended December 31, 2020, up
$28.5 million from $26.2 million in the prior year. Adjusted diluted earnings per share for the year en
ded December 31, 2020 totaled $1.31, a 122%
crease from $0.59 per fully diluted share in the year ended December 31, 2019.
Revenue:
Revenues decrease
d 27% for the
year ended December 31, 2020, totaling
$465.3 million compared to $638.9 million for the prior-year period. The decrease in revenue is attributabl
e to reductions in loan origination volume and lower effective APRs for the loan portfolio due to the economic crisis created by the COVID-19 pandemic beginning in March 2020.
Combined loans receivable - principal:
Combined loans receivable - principal totaled $399.8 million, a decrease of $207.3 million, or 34%, from $607.1 million at the prior year-end
number of new and former customer loans originated during 2020 totaled approximately 125,000 loans, a decrease from approximately 240,000 in the prior year.
__________________________
Fourth quarter and fiscal year 2020 results and comparable periods are presented on a continuing operations basis and exclude the results of discontinued operations in the UK, unless otherwise stated. Elevate exited the UK market in the second quarter of 2020.
Adjusted EBITDA, Adjusted EBITDA margin, combined loans receivable - principal, combined loans receivable, combined loan loss reserve, adjusted earnings and adjusted diluted earnings per share are non-GAAP financial measures. These terms are defined elsewhere in this release. Please see the schedules appearing later in this release for reconciliations of these non-GAAP measures to the most directly comparable GAAP measures.
Credit quality:
The combined loan loss reserve at December 31, 2020 totaled $49.1 million, or 12% of combined loans receivable, down from 13% at the prior year end. Combined loans receivable - principal that were past due at the end of 2020 tot
aled 6%, dow
n from 10% at the end of 2019.
Adjusted EBITDA:
Adjusted EBITDA totaled $146.5 million, up $19.1 million, or 15%, from $127.3 million in the prior year. The Adjusted EBITDA margin for the year ended December 31, 2020 was 31.5%, an increase from 19.9% in the prior year.
Fourth Quarter 2020 Financial Highlights
Quarterly net loss and adjusted earnings:
The Company incurred a net loss in the fourth quarter of 2020 primarily due to recording $17.4 million in legal settlement accruals. The net loss for the three months ended December 31, 2020 totale
d $(4.1) million, or $(0.10) per diluted share, compared to $8.3 million of net income, or $0.19 per dil
uted share, in the fourth quarter of 2019. Excluding the impact of non-operating charges of $17.4 million related to the legal accruals, adjusted earnings were $8.9 million for the three months ended December 31, 2020, up $4.7 million from $4.2 million in the fourth quarter of 2019. Adjusted diluted earnings per share for the fourth quarter of 2020 totaled $0.23 per fully diluted share, a 156% increase from $0.09 per fully diluted share in the fourth quarter of 2019.
Revenue:
Revenues decreased
in the fourth quarter of 2020, totaling $90.7 million compared with $164.1 million for the fourth quarter of 2019. The decrease in revenue is attributable to reductions in loan origination volume and lower effective APRs earned on the loan portfolio due to the economic crisis created by the COVID-19 pandemic beginning in March 2020.
aled $26.5 million in the fourth quarter of 2020, slightly lower than $27.0 million in the fourth quarter of 2019. The Adjusted EBITDA margin for the fourth quarter of 2020 was 29.2%, an increase from 16.4% in the prior year quarter.
Impact of COVID-19 on Credit Quality
The Company and the bank originators it supports expanded their payment flexibility tools during 2020 to allow customers to extend their next payment. As of December 31, 2020, 8.7% of customers have been provided relief through COVID-19 payment flexibility tools for a total of $34.6 million in loans with deferred payments. This compares to $38.7 million in loans with deferred payments, or 10.4% of customers, as of September 30, 2020. Both the Company and the bank originators are closely monitoring the performance of the payment deferral program and key credit quality indicators such as payment defaults, continued payment deferrals, and line of credit utilization. The Company and the bank originators it supports have implemented underwriting changes to address credit risk associated with loan originations during the economic crisis created by the COVID-19 pandemic and have seen reduced loan origination applications and loan origination volume since the beginning of the pandemic in March 2020.
Liquidity and Capital Resources
The Company paid down its debt facilities by approximately $87.5 million during the year ended December 31, 2020 ($103.8 million including the discontinued operations of the UK). The Company’s outstanding debt on its discontinued UK operations was completely repaid during the third quarter of 2020 as part of the UK administration process and the Company has no further obligations outstanding related to its discontinued UK operations. In January 2021, the Company paid off the remaining $18.1 million balance of the 4
Tranche Term Note, which was scheduled to mature on February 1, 2021, and paid down an additional $79.5 million in outstanding debt under the revolving feature of its debt facilities, which provides the option to pay down up to 20% of the outstanding balance during the first quarter of each year. Total debt has decreased from $525.4 million at December 31, 2019 to $340.9 million as of January 31, 2021.
Interest expense in the fourth quarter of 2020 decreased to $11.6 million from $14.0 million in the fourth quarter of 2019.
For fiscal year 2020, interest expense totaled $49.0 million, down $13.5 million, or 22%, from $62.5 million in fiscal year 2019.
This decrease resulted from both a reduced average outstanding debt balance during the year and a lower cost of funds which decreased to an average of
for our debt facilities in fiscal year 2020 from
The cost of funds on all debt facilities decreased an additional
25 basis points effective January 1, 2021.
In January 2021, the Company’s Board of Directors authorized a $25 million increase to the Company’s existing $30 million common stock repurchase program, providing for the repurchase of up to $55 million of the Company’s common stock th
July 31, 2024.
During the year ended December 31, 2020, the Company repurchased $19.8 million of common shares (7.7 million common shares
or rough
ly 18% o
f common shares outstanding as of the beginning of 2020), with $5.1 million of common shares
(1.6 million common shares) purchased during the fourth quarter of 2020. Additionally, the Company repurchased $5 million of common shares during January 2021 under the prior $30 million authorization.
Financial Outlook
The Company does not plan to issue 2021 earnings guidance at this time due to the uncertain impact on our business and results of operations resulting from the COVID -19 pandemic, including from payment of the second round of Federal monetary stimulus and potential future additional stimulus payments under discussion by the Federal government.
Conference Call
The Company will host a conference call to discuss its fourth quarter and full-year 2020 financial results on Monday, February 8th at 4:00pm Central Time / 5:00pm Eastern Time. Interested parties may access the conference call live over the phone by dialing 1-877-407-0792 (domestic) or 1-201-689-8263 (international) and requesting the Elevate Fourth Quarter and Full Year 2020 Earnings Conference Call. Participants are asked to dial in a few minutes prior to the call to register for the event. The conference call will also be webcast live through Elevate’s website at
http://www.elevate.com/investors
An audio replay of the conference call will be available approximately three hours after the conference call until 11:59 pm ET on February 22, 2021, and can be accessed by dialing 1-844-512-2921 (domestic) or 1-412-317-6671 (international), and providing the passcode 13715014, or by accessing Elevate’s website.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements contain words such as "may," "will," "might," "expect," "believe," "anticipate," "could," "would," "estimate," "continue," "pursue," or the negative thereof or comparable terminology, and may include (without limitation) information regarding the Company's expectations, goals or intentions regarding future performance. These statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “will,” “should,” “likely” and other words and terms of similar meaning. The forward-looking statements include statements regarding our expectations regarding the underwriting changes implemented by us and the bank originators we support to address credit risk associated with loan originations during the economic crisis created by the COVID-19 pandemic, and the uncertain impact on our business and results of operations resulting from the COVID-19 pandemic, including from payment of the second round of Federal monetary stimulus and potential future additional stimulus payments under discussion by the Federal government. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. These risks and uncertainties include, but are not limited to: the effect of the COVID-19 pandemic and various policies being implemented to prevent its spread on the Company's business, financial condition and results of operations; the Company’s limited operating history in an evolving industry; the Company’s ability to grow revenue and maintain or achieve consistent profitability in the future; new laws and regulations in the consumer lending industry in many jurisdictions that could restrict the consumer lending products and services the Company offers, impose additional compliance costs on the Company, render the Company’s current operations unprofitable or even prohibit the Company’s current operations; scrutiny by regulators and payment processors of certain online lenders’ access to the Automated Clearing House system to disburse and collect loan proceeds and repayments; a lack of sufficient debt financing at acceptable prices or disruptions in the credit markets; the impact of competition in our industry and innovation by our competitors; our ability to prevent security breaches, disruption in service and comparable events that could compromise the personal and confidential information held in our data systems, reduce the attractiveness of our platform or adversely impact our ability to service loans; and other risks related to litigation, compliance and regulation. Additional factors that could cause actual results to differ are discussed under the heading "Risk Factors" and in other sections of the Company's most recent Annual Report on Form 10-K, and in the Company's other current and periodic reports filed from time to time with the SEC. All forward-looking statements in this press release are made as of the date hereof, based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement.
About Elevate
Elevate (NYSE: ELVT), together with the banks that license its marketing and technology services, has originated $8.8 billion in non-prime credit to more than 2.5 million non-prime consumers to date and has saved its customers more than $7.9 billion versus the cost of payday loans. Its responsible, tech-enabled online credit solutions provide immediate relief to customers today and help them build a brighter financial future. The company is committed to rewarding borrowers’ good financial behavior with features like interest rates that can go down over time, free financial training and free credit monitoring. Elevate’s suite of groundbreaking credit products includes RISE, Elastic and Today Card. For more information, please visit
Investor Relations:
Solebury Trout
Sloan Bohlen, (817) 928-1646
investors@elevate.com
Media Inquiries:
Lisa Wolford, (917) 846-0881
lwolford@soleburytrout.com
Elevate Credit, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended 
 December 31,
Years Ended 
(Dollars in thousands, except share and per share amounts)
Revenues
90,724 
164,137 
465,346 
638,873 
Cost of sales:
Provision for loan losses
23,694 
90,323 
156,910 
325,662 
Direct marketing costs
6,384 
9,350 
20,282 
38,548 
Other cost of sales
2,175 
2,850 
8,124 
10,083 
Total cost of sales
32,253 
102,523 
185,316 
374,293 
Gross profit
58,471 
61,614 
280,030 
264,580 
Operating expenses:
Compensation and benefits
19,864 
21,989 
84,103 
89,417 
Professional services
7,001 
8,418 
31,634 
31,834 
Selling and marketing
1,104 
3,450 
4,773 
Occupancy and equipment
4,644 
4,267 
18,840 
15,989 
Depreciation and amortization
4,720 
4,055 
18,133 
15,879 
Other
1,091 
1,452 
3,659 
5,119 
Total operating expenses
38,302 
41,285 
159,819 
163,011 
Operating income
20,169 
20,329 
120,211 
101,569 
Other expense:
Net interest expense
(11,612)
(13,968)
(49,020)
(62,533)
Non-operating income (loss)
(17,387)
(24,079)
Total other expense
(28,999)
(13,954)
(73,099)
(63,214)
Income (loss) from continuing operations before taxes
(8,830)
6,375 
47,112 
38,355 
Income tax expense (benefit)
(4,401)
2,165 
10,910 
12,159 
Net income (loss) from continuing operations
(4,429)
4,210 
36,202 
26,196 
Net income (loss) from discontinued operations
4,079 
(15,610)
5,987 
(4,131)
8,289 
20,592 
32,183 
Basic earnings per share
Continuing operations
(0.11)
Discontinued operations
(0.38)
Diluted earnings per share
Basic weighted-average shares outstanding
38,851,781 
44,009,459 
40,926,581 
43,805,845 
Diluted weighted-average shares outstanding
44,587,331 
41,761,623 
44,338,205 
Condensed Consolidated Balance Sheets
(Dollars in thousands)
ASSETS
Cash and cash equivalents*
$197,983
$71,215
Restricted cash
Loans receivable, net of allowance for loan losses of $48,399 and $79,912, respectively*
374,832
542,073
Prepaid expenses and other assets*
10,060
Operating lease right of use assets
10,191
Receivable from CSO lenders
Receivable from payment processors*
Deferred tax assets, net
25,958
Property and equipment, net
34,000
35,944
Goodwill
Intangible assets, net
Assets from discontinued operations
81,002
Total assets
$669,599
$783,587
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued liabilities *
$52,252
$38,679
Operating lease liability
11,952
14,352
Deferred revenue*
12,087
Notes payable, net*
438,403
525,439
Liabilities from discontinued operations
36,541
Total liabilities
505,741
627,098
COMMITMENTS, CONTINGENCIES AND GUARANTEES
Preferred stock
Common stock
Additional paid-in capital
200,433
193,061
Treasury stock
(16,492)
(3,344)
Accumulated deficit
(20,101)
(34,342)
Accumulated other comprehensive income
Total stockholders’ equity
163,858
156,489
Total liabilities and stockholders’ equity
* These balances include certain assets and liabilities of variable interest entities (“VIEs”) that can only be used to settle the liabilities of that respective VIE. All assets of the Company are pledged as security for the Company’s outstanding debt, including debt held by the VIEs.
Non-GAAP Financial Measures
This press release and the attached financial tables contain certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted earnings, Adjusted diluted earnings per share, combined loans receivable - principal, combined loans receivable and combined loan loss reserve.
Adjusted Earnings Measures
In addition to the financial information prepared in accordance with GAAP, Elevate uses certain non-GAAP measures such as “Adjusted EBITDA”, "Adjusted EBITDA margin", "Adjusted earnings" and "Adjusted diluted earnings per share" (collectively, "Adjusted Earnings Measures") in assessing its operating performance. Elevate believes these non-GAAP measures are appropriate measures to be used in evaluating the performance of its business.
Elevate defines Adjusted EBITDA as net income from continuing operations excluding the impact of income tax expense (benefit), non-operating (income) loss, net interest expense, share-based compensation expense and depreciation and amortization expense. Elevate defines Adjusted EBITDA margin as Adjusted EBITDA divided by revenue.
Elevate defines Adjusted earnings as net income from continuing operations excluding the impact of a contingent loss related to legal matters (tax effected). Elevate defines Adjusted diluted earnings per share as Adjusted earnings divided by Diluted weighted average shares outstanding.
Management believes that Adjusted Earnings Measures are useful supplemental measures to assist management and investors in analyzing the operating performance of the business and provide greater transparency into the results of operations of our core business. Management uses these non-GAAP financial measures frequently in its decision-making because they provide supplemental information that facilitates internal comparisons to the historical operating performance of prior periods and give an additional indication of Elevate’s core operating performance. Elevate includes these non-GAAP financial measures in its earnings announcement in order to provide transparency to its investors and enable investors to better compare its operating performance with the operating performance of its competitors.
Adjusted Earnings Measures should not be considered as alternatives to net income or any other performance measure derived in accordance with GAAP. Management's use of Adjusted Earnings Measures has limitations as an analytical tool, and investors should not consider it in isolation or as a substitute for analysis of the Company's results as reported under GAAP. Some of these limitations are:
Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect expected cash capital expenditure requirements for such replacements or for new capital assets;
Adjusted EBITDA does not reflect changes in, or cash requirements for, the Company's working capital needs; and
Adjusted EBITDA does not reflect interest associated with notes payable used for funding customer loans, for other corporate purposes or tax payments that may represent a reduction in cash available to the Company.
Additionally, Elevate’s definition of Adjusted Earnings Measures may not be comparable to similarly titled measures reported by other companies.
The following table presents a reconciliation of Adjusted EBITDA and Adjusted EBITDA margin to Elevate’s net income (loss) from continuing operations for the three and twelve months ended December 31, 2020 and 2019:
Three Months Ended
Years Ended
Adjustments:
11,612 
13,968 
49,020 
62,533 
Share-based compensation
1,598 
2,589 
8,110 
9,875 
Non-operating (income) loss
17,387 
24,079 
26,487 
26,973 
146,454 
127,323 
Adjusted earnings and adjusted diluted earnings per share
For the three and twelve months ended December 31, 2020, the Company recognized $17.4 million
and $24.1 million, respectively, of charges related to contingent losses on two legal matters in Non-operating income (loss). The following table presents a reconciliation of Net income (loss) from continuing operations and diluted earnings per share to Adjusted earnings and Adjusted diluted earnings per share, which excludes the impact of the contingent losses.
(Dollars in thousands except per share amounts)
Impact of contingent loss related to legal matters
Cumulative tax effect of adjustments
(4,027)
(5,577)
8,931 
54,704 
Diluted earnings (loss) per share
(0.14)
Effect of potentially dilutive shares outstanding (1)
912,832 
Adjusted diluted weighted average shares outstanding
39,764,613 
(1) Represents potentially dilutive shares that had not been included in the Company's quarter-ended December 31, 2020 diluted weighted average shares outstanding as the Company was in a net loss position under U.S. GAAP. Including these shares would have been anti-dilutive when in a net loss position.
Supplemental Schedules
Revenue by Product
Three Months Ended December 31, 2020
Rise (1)
Average combined loans receivable – principal(2)
215,390 
150,862 
11,658 
377,910 
Effective APR
Finance charges
54,348 
35,063 
90,273 
Total revenue
54,434 
35,105 
1,185 
Three Months Ended December 31, 2019
328,571 
247,227 
4,552 
580,350 
102,701 
60,786 
163,875 
102,650 
60,989 
Year ended December 31, 2020
263,162 
182,796 
8,025 
453,983 
290,555 
171,086 
2,442 
464,083 
1,263 
290,755 
171,319 
3,272 
Year ended December 31, 2019
306,785 
251,512 
3,037 
561,334 
389,372 
246,476 
636,770 
2,103 
390,354 
247,310 
1,209 
(1)     Includes loans originated by third-party lenders through the CSO programs, which are not included in the Company's condensed consolidated financial statements.
(2)    Average combined loans receivable - principal is calculated using daily principal balances. See the "Combined Loan Information" section for a reconciliation of this non-GAAP measure to the most comparable GAAP measure.
Loan Loss Reserve by Product
Combined loan loss reserve(1):
Beginning balance
34,317 
15,415 
51,330 
Net charge-offs
(17,838)
(7,596)
(25,945)
17,490 
5,381 
Ending balance
33,969 
13,200 
1,910 
49,079 
Combined loans receivable(1)(2)
247,797 
163,154 
14,518 
425,469 
Combined loan loss reserve as a percentage of ending combined loans receivable
Net charge-offs as a percentage of revenues
Provision for loan losses as a percentage of revenues
50,504 
30,902 
1,103 
82,509 
(58,388)
(31,604)
(90,840)
59,983 
29,554 
52,099 
28,852 
1,041 
81,992 
373,676 
263,354 
4,547 
641,577 
(1)    Not a financial measure prepared in accordance with GAAP. See the "Combined Loan Information" section for a reconciliation of this non-GAAP measure to the most comparable GAAP measure.
(2)     Includes loans originated by third-party lenders through the CSO programs, which are not included in the Company's consolidated financial statements.
Loan Loss Reserve by Product (continued)
(126,236)
(61,639)
(1,948)
(189,823)
108,105 
45,988 
2,817 
33,968 
13,201 
50,597 
36,019 
86,647 
(205,577)
(123,629)
(1,111)
(330,317)
207,079 
116,462 
2,121 
Customer Loan Data by Product
Beginning number of combined loans outstanding
99,959 
102,854 
7,074 
209,887 
New customer loans originated
15,023 
2,414 
3,754 
21,191 
Former customer loans originated
17,812 
17,948 
Attrition
(28,854)
(5,299)
(34,178)
Ending number of combined loans outstanding
103,940 
100,105 
10,803 
214,848 
Customer acquisition cost
Average customer loan balance
2,197 
1,572 
1,306 
1,861 
148,251 
149,362 
3,285 
300,898 
28,163 
11,673 
40,163 
24,815 
24,829 
(48,794)
(14,732)
(63,931)
152,435 
146,317 
3,207 
301,959 
2,297 
1,727 
1,368 
2,011 
46,857 
13,302 
8,086 
68,245 
56,427 
56,775 
(151,779)
(59,862)
(212,131)
142,758 
165,950 
309,155 
108,813 
47,677 
3,235 
159,725 
80,624 
80,686 
(179,760)
(67,372)
(247,607)
The Elastic line of credit product is originated by a third party lender, Republic Bank, which initially provides all of the funding for that product. Republic Bank retains 10% of the balances of all of the loans originated and sells a 90% loan participation in the Elastic lines of credit to a third party SPV, Elastic SPV, Ltd. Elevate is required to consolidate Elastic SPV, Ltd., as a variable interest entity under GAAP, and the condensed consolidated financial statements include revenue, losses and loans receivable related to the 90% of Elastic lines of credit originated by Republic Bank and sold to Elastic SPV, Ltd.
Beginning in the fourth quarter of 2018, the Company also licensed its Rise installment loan brand to a third party lender, FinWise Bank, which originates Rise installment loans in nineteen states. FinWise Bank initially provides all of the funding and retains a percentage of the balances of all of the loans originated and sells the remaining loan participation in those Rise installment loans to a third party SPV, EF SPV, Ltd. Prior to August 1, 2019, FinWise Bank retained 5% of the balances, and sold a 95% participation to EF SPV, Ltd. Starting August 1, 2019, the participation percentage changed to 96%. Elevate is required to consolidate EF SPV, Ltd., as a variable interest entity under GAAP, and the condensed consolidated financial statements include revenue, losses and loans receivable related to the 96% of Rise installment loans originated by FinWise Bank and sold to EF SPV, Ltd.
Beginning in September 2020, the Company licensed its Rise installment loan brand to a third party lender, Capital Community Bank, which originates Rise installment loans in three states. Capital Community Bank initially provides all of the funding and retains a percentage of the balances of all of the loans originated and sells a 95% loan participation in those Rise installment loans to a third party SPV, EC SPV, Ltd. Elevate is required to consolidate EC SPV, Ltd., as a variable interest entity under GAAP, and the condensed consolidated financial statements include revenue, losses and loans receivable related to the 95% of Rise installment loans originated by Capital Community Bank and sold to EC SPV, Ltd.
Elevate defines combined loans receivable - principal as loans owned by the Company plus loans originated and owned by third-party lenders pursuant to our CSO programs. In Ohio and Texas, the Company does not make Rise loans directly, but rather acts as a Credit Services Organization (which is also known as a Credit Access Business), or, “CSO,” and the loans are originated by an unaffiliated third party. There are no new loan originations in Ohio and Texas commencing in April 2019 and October 1, 2020, respectively, but the Company continues to have obligations as the CSO until the wind-down of this portfolio is complete. Elevate defines combined loan loss reserve as the loan loss reserve for loans owned by the Company plus the loan loss reserve for loans originated and owned by third-party lenders and guaranteed by the Company. The information presented in the tables below on a combined basis are non-GAAP measures based on a combined portfolio of loans, which includes the total amount of outstanding loans receivable that the Company owns and that are on the Company's condensed consolidated balance sheets plus outstanding loans receivable originated and owned by third parties that the Company guarantees pursuant to CSO programs in which the Company participates.
The Company believes these non-GAAP measures provide investors with important information needed to evaluate the magnitude of potential loan losses and the opportunity for revenue performance of the combined loan portfolio on an aggregate basis. The Company also believes that the comparison of the combined amounts from period to period is more meaningful than comparing only the amounts reflected on the Company's condensed consolidated balance sheets since both revenues and cost of sales as reflected in the Company's condensed consolidated financial statements are impacted by the aggregate amount of loans the Company owns and those CSO loans the Company guarantees.
The Company's use of total combined loans and fees receivable has limitations as an analytical tool, and investors should not consider it in isolation or as a substitute for analysis of the Company's results as reported under GAAP. Some of these limitations are:
Rise CSO loans are originated and owned by a third party lender; and
Rise CSO loans are funded by a third party lender and are not part of the VPC Facility.
As of each of the period ends indicated, the following table presents a reconciliation of:
Loans receivable, net, Company owned (which reconciles to the Company's condensed consolidated balance sheets included elsewhere in this press release);
Loans receivable, net, guaranteed by the Company;
Combined loans receivable (which the Company uses as a non-GAAP measure); and
Combined loan loss reserve (which the Company uses as a non-GAAP measure).
March 31
June 30
September 30
Company Owned Loans:
Loans receivable – principal, current, company owned
451,298 
484,131 
507,551 
530,463 
486,396 
387,939 
346,380 
372,320 
Loans receivable – principal, past due, company owned
45,757 
47,846 
59,240 
58,489 
53,923 
18,917 
21,354 
25,563 
Loans receivable – principal, total, company owned
497,055 
531,977 
566,791 
588,952 
540,319 
406,856 
367,734 
397,883 
Loans receivable – finance charges, company owned
27,520 
27,472 
31,698 
33,033 
31,621 
25,606 
24,117 
25,348 
Loans receivable – company owned
524,575 
559,449 
598,489 
621,985 
571,940 
432,462 
391,851 
423,231 
Allowance for loan losses on loans receivable, company owned
(64,450)
(65,889)
(80,537)
(79,912)
(76,188)
(59,438)
(49,909)
(48,399)
Loans receivable, net, company owned
460,125 
493,560 
517,952 
542,073 
495,752 
373,024 
341,942 
374,832 
Third Party Loans Guaranteed by the Company:
Loans receivable – principal, current, guaranteed by company
27,941 
21,099 
18,633 
17,474 
12,606 
6,755 
9,129 
1,795 
Loans receivable – principal, past due, guaranteed by company
Loans receivable – principal, total, guaranteed by company(1)
28,637 
21,695 
19,330 
18,197 
13,170 
6,872 
9,443 
1,939 
Loans receivable – finance charges, guaranteed by company(2)
2,164 
1,676 
1,553 
1,395 
1,150 
Loans receivable – guaranteed by company
30,801 
23,371 
20,883 
19,592 
14,320 
7,422 
10,122 
2,238 
Liability for losses on loans receivable, guaranteed by company
(3,242)
(1,983)
(1,972)
(2,080)
(1,571)
(1,156)
(1,421)
Loans receivable, net, guaranteed by company(3)
27,559 
21,388 
18,911 
17,512 
12,749 
6,266 
8,701 
1,558 
Combined Loans Receivable(3):
Combined loans receivable – principal, current
479,239 
505,230 
526,184 
547,937 
499,002 
394,694 
355,509 
374,115 
Combined loans receivable – principal, past due
46,453 
48,442 
59,937 
59,212 
54,487 
19,034 
21,668 
25,707 
525,692 
553,672 
586,121 
607,149 
553,489 
413,728 
377,177 
399,822 
Combined loans receivable – finance charges
29,684 
29,148 
33,251 
34,428 
32,771 
26,156 
24,796 
25,647 
555,376 
582,820 
619,372 
586,260 
439,884 
401,973 
Combined Loan Loss Reserve(3):
(67,692)
(67,872)
(82,509)
(81,992)
(77,759)
(60,594)
(51,330)
(49,079)
Combined loans receivable – principal, past due(3)
Combined loans receivable – principal(3)
Percentage past due
Combined loan loss reserve as a percentage of combined loans receivable(3)
Allowance for loan losses as a percentage of loans receivable – company owned
(1) Represents loans originated by third-party lenders through the CSO programs, which are not included in the Company's condensed consolidated financial statements.
(2) Represents finance charges earned by third-party lenders through the CSO programs, which are not included in the Company's condensed consolidated financial statements.
(3) Non-GAAP measure.

The above information was disclosed in a filing to the SEC. To see the filing, click here.

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Other recent filings from the company include the following:

Elevate Credit, Inc. director just disposed of 9,200 shares - April 20, 2021
Major owner of Elevate Credit, Inc. just disposed of 9,200 shares - April 20, 2021
Statement of changes in beneficial ownership of securities - April 16, 2021
Major owner of Elevate Credit, Inc. just disposed of 74,421 shares - April 12, 2021
Other definitive proxy statements - April 12, 2021

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