From GlobeNewswire: 2024-05-10 22:00:00

Atlanticus Holdings Corporation (NASDAQ: ATLC) reported a 11.2% increase in total operating revenue for the first quarter of 2024, reaching $290.2 million. Managed receivables rose by 12.8% to $2.3 billion, with a net receivables growth of $262.4 million. Over 250,000 new accounts were served during the quarter, totaling 3.5 million accounts served in total.

Interest expense for Atlanticus increased to $35.1 million in the first quarter of 2024, up from $24.2 million in the same period last year. The increase was driven by planned growth in outstanding debt in proportion to the growth in receivables, combined with rising borrowing costs. Despite this, the company expects only modest increases in interest expense in the short term, with over 90% of interest rates on outstanding debt being fixed.

Changes in fair value of loans rose to $159.2 million in the first quarter of 2024, compared to $149.8 million in the same period in 2023. This change was influenced by growth in underlying receivables as well as assumptions reflecting new rules enacted by the Consumer Financial Protection Bureau, which will have an impact on fees charged to consumers.

Jeff Howard, President and CEO of Atlanticus, expressed satisfaction with the company’s profitability and growth in the first quarter. Despite challenges posed by increased consumer delinquency rates and a changing regulatory landscape, he highlighted a conservative credit posture and strategic planning for potential regulatory changes impacting late fees. The company remains optimistic about its long-term prospects and is focused on expanding its platform and offerings to enhance customer experience.



Read more at GlobeNewswire:: Atlanticus Reports First Quarter 2024 Financial Results