Business Segments

6 Months Ended

Jun. 30, 2020

Note 10. Business Segments

The Company has elected to organize and report on its operations as two operating segments: Retail financial services and Internet financial services.

The following tables present summarized financial information for the Company’s segments:


	As of and for the three months ended June 30, 2020
	Retail				Internet				Unallocated
	Financial		% of		Financial		% of		(Income)				% of
	Services		Revenue		Services		Revenue		Expenses		Consolidated		Revenue
Total Assets	$	166,086			$	39,307					$	205,393
Other Intangible Assets		2,407				15						2,422
Total Revenues	$	45,727	100.0	%	$	5,948	100.0	%			$	51,675	100.0	%
Provision for Loan Losses		4,537	9.9	%		1,163	19.6	%				5,700	11.0	%
Depreciation and Amortization		4,066	8.9	%		—	—	%				4,066	7.9	%
Other Operating Expenses		29,654	64.9	%		582	9.7	%				30,236	58.4	%
Operating Gross Profit		7,470	16.3	%		4,203	70.7	%				11,673	22.7	%
Interest Expense, net		8,787	19.2	%		4,174	70.2	%				12,961	25.1	%
Depreciation and Amortization		851	1.9	%		32	0.5	%				883	1.7	%
Other Corporate Expenses (a)		—	—			—	—			15,615		15,615	30.2	%
Loss from Continuing Operations, before tax		(2,168)	(4.7)	%		(3)	(0.1)	%		(15,615)		(17,786)	(34.4)	%

(a)

Represents expenses that are not allocated between reportable segments.


	As of and for the six months ended June 30, 2020
	Retail				Internet				Unallocated
	Financial		% of		Financial		% of		(Income)				% of
	Services		Revenue		Services		Revenue		Expenses		Consolidated		Revenue
Total Assets	$	166,086			$	39,307					$	205,393
Other Intangible Assets		2,407				15						2,422
Total Revenues	$	111,734	100.0	%	$	15,920	100.0	%			$	127,654	100.0	%
Provision for Loan Losses		19,505	17.5	%		5,924	37.2	%				25,429	19.9	%
Depreciation and Amortization		8,646	7.7	%		—	—	%				8,646	6.8	%
Other Operating Expenses		63,384	56.7	%		1,779	11.2	%				65,163	50.9	%
Operating Gross Profit		20,199	18.1	%		8,217	51.6	%				28,416	22.4	%
Interest Expense, net		17,441	15.6	%		8,719	54.8	%				26,160	20.5	%
Depreciation and Amortization		1,777	1.6	%		63	0.4	%				1,840	1.4	%
Goodwill Impairment		11,288	10.1	%		—	—					11,288	8.8	%
Other Corporate Expenses (a)		—	—			—	—			33,830		33,830	26.5	%
Loss from Continuing Operations, before tax		(10,307)	(9.2)	%		(565)	(3.5)	%		(33,830)		(44,702)	(35.0)	%

(a)

Represents expenses that are not allocated between reportable segments.


	As of and for the three months ended June 30, 2019
	Retail				Internet				Unallocated
	Financial		% of		Financial		% of		(Income)				% of
	Services		Revenue		Services		Revenue		Expenses		Consolidated		Revenue
Total Assets	$	237,530			$	28,238					$	265,768
Goodwill		11,288				—						11,288
Other Intangible Assets		2,785				108						2,893
Total Revenues	$	71,535	100.0	%	$	10,958	100.0	%			$	82,493	100.0	%
Provision for Loan Losses		19,512	27.3	%		5,834	53.2	%				25,346	30.7	%
Depreciation and Amortization		5,147	7.2	%		—	—	%				5,147	6.2	%
Other Operating Expenses		32,475	45.4	%		1,283	11.7	%				33,758	41.0	%
Operating Gross Profit		14,401	20.1	%		3,841	35.1	%				18,242	22.1	%
Interest Expense, net		8,011	11.2	%		3,864	35.3	%				11,875	14.4	%
Depreciation and Amortization		1,435	2.0	%		32	0.3	%				1,467	1.8	%
Other Corporate Expenses (a)		—	—			—	—			17,538		17,538	21.3	%
Loss from Continuing Operations, before tax		4,955	6.9	%		(55)	(0.5)	%		(17,538)		(12,638)	(15.3)	%

(a)Represents expenses that are not allocated between reportable segments


	As of and for the six months ended June 30, 2019
	Retail				Internet				Unallocated
	Financial		% of		Financial		% of		(Income)				% of
	Services		Revenue		Services		Revenue		Expenses		Consolidated		Revenue
Total Assets	$	237,530			$	28,238					$	265,768
Goodwill		11,288				—						11,288
Other Intangible Assets		2,785				108						2,893
Total Revenues	$	147,519	100.0	%	$	21,470	100.0	%			$	168,989	100.0	%
Provision for Loan Losses		36,762	24.9	%		9,870	46.0	%				46,632	27.6	%
Depreciation and Amortization		13,352	9.1	%		—	—	%				13,352	7.9	%
Other Operating Expenses		64,497	43.7	%		2,415	11.2	%				66,912	39.6	%
Operating Gross Profit		32,908	22.3	%		9,185	42.8	%				42,093	24.9	%
Interest Expense, net		15,908	10.8	%		7,353	34.2	%				23,261	13.8	%
Depreciation and Amortization		2,823	1.9	%		125	0.6	%				2,948	1.7	%
Other Corporate Expenses (a)		—	—			—	—			34,637		34,637	20.5	%
Income (loss) from Continuing Operations, before tax		14,177	9.6	%		1,707	8.0	%		(34,637)		(18,753)	(11.1)	%

(a)Represents expenses that are not allocated between reportable segments.

CCF Holdings LLC 10-Q