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Sep 30, 2023
Atlanticus Q3 2023 Earnings Report
Reported strong profitability, attractive return on capital, and reasonable growth.
Key Takeaways
Atlanticus reported a 6.1% increase in total operating revenue, reaching $294.9 million, and a net income attributable to common shareholders of $18.9 million, or $1.03 per diluted share. Managed receivables increased by 12.9% to $2.3 billion.
Managed receivables increased 12.9% to $2.3 billion.
Total operating revenue increased 6.1% to $294.9 million.
Net income attributable to common shareholders was $18.9 million, or $1.03 per diluted share.
Over 380,000 new accounts were served during the quarter, with over 3.4 million total accounts serviced.
Atlanticus
Atlanticus
Forward Guidance
Atlanticus anticipates continued increases in operating expenses for the remainder of 2023, driven by growth in the number of consumers served and additional hiring. They also expect net period-over-period growth in total interest income and related fees for the fourth quarter of 2023, albeit at a decreased growth rate compared to 2022. Further increases in quarterly interest expense are expected due to additional debt financing and increased effective interest rates.
Positive Outlook
- Expect net period-over-period growth in total interest income and related fees for the fourth quarter of 2023.
- The company's diverse array of industry segments served and continued product enhancements allow it to bring greater value to its partners by serving more of their customers.
- Conservative underwriting has led to a meaningful reduction in portfolio delinquency compared to the same period last year.
- Ample liquidity and well-structured balance sheet position the company for long-term sustained growth.
- Growth across each of the company's product offerings.
Challenges Ahead
- Some retail credit partners have experienced volume reductions.
- Expect the pace of growth to slow near-term due to tightened underwriting standards.
- Anticipate additional debt financing over the next few quarters, coupled with increased effective interest rates.
- Expect continued increases in operating expenses for the remainder of 2023.
- Recent increases in the federal funds rate have started to increase interest expense.