Atlanticus Reports Fourth Quarter and Full Year 2024 Financial Results

Core Viewpoint - Atlanticus Holdings Corporation reported strong financial results for the fourth quarter and full year ended December 31, 2024, highlighting significant growth in net margin and managed receivables despite various economic challenges [1][3]. Financial and Operating Highlights - Fourth quarter 2024 net margin grew by 28.0% compared to the prior year, reaching $117.5 million [4][18]. - Total operating revenue and other income increased by 14.4$353.2 million for the fourth quarter [4][9]. - Managed receivables rose by 13.0% to $2.7 billion, with over$313.5 million in net receivables growth [4][6]. - The company served 3.7 million accounts, with 368,000 new accounts added during the quarter [4][6]. Management Commentary - The CEO expressed pride in the company's ability to achieve return on capital targets while navigating disruptions such as the pandemic and inflation [3]. - Over the past five years, managed receivables grew at a compounded annual growth rate of 24%, revenue by 31%, and earnings by 29% [3]. Revenue Breakdown - Consumer loans, including past due fees, contributed $251.7 million to total revenue for the quarter [27]. - Fees and related income on earning assets amounted to$83.8 million [27]. - Other revenue sources totaled $17.7 million [27]. Interest Expense and Debt - Interest expense for the fourth quarter was$44.7 million, a 36.9% increase from the previous year, driven by higher outstanding debt and borrowing costs [10][11]. - Outstanding notes payable increased to $2.16 billion as of December 31, 2024, from$1.80 billion a year earlier [11]. Changes in Fair Value of Loans - Changes in fair value of loans were reported at $184.3 million for the fourth quarter, slightly up from$184.1 million in the prior year [12]. Operating Expenses - Total operating expenses rose by 27.0% to $77.6 million, primarily due to increased servicing costs and inflationary pressures [14]. - Salaries and benefits accounted for a significant portion of the operating expenses, totaling$12.6 million for the quarter [27]. Net Income - Net income attributable to common shareholders increased by 31.7% to $26.3 million, or$1.42 per diluted share [18][27].