Enova International Inc. has updated its outlook for full year 2018 and issued guidance for the third quarter while reporting its second-quarter earnings.
For full year 2018, Enova expects total revenue of $1.04 billion to $1.08 billion, versus earlier guidance of $980 million to $1.04 billion. Adjusted EBITDA is now expected to be $195 million to $215 million, compared to $190 million to $215 million. GAAP EPS is projected to range between $1.78 and $2.22, compared to the previous guidance of $1.69 to $2.25; adjusted EPS is projected to be between $2.19 and $2.63, compared to $2.10 and $2.66, as earlier expected.
For the third quarter, Enova expects total revenue of $260 million to $275 million, GAAP EPS of 30 cents to 52 cents, adjusted EBITDA of $40 million to $50 million, and adjusted EPS of 37 cents to 58 cents.
For the second quarter, Enova's reported net income was $18.2 million, or 52 cents per share, compared to $11.9 million, or 35 cents per share, in the year-ago period. Adjusted earnings were $20.8 million, or 59 cents per share, compared to $14.0 million, or 41 cents per share, in the year-ago quarter.
The S&P Capital IQ consensus normalized EPS estimate for the most recent quarter was 53 cents.
Additionally, Enova and some of its subsidiaries entered into a receivables funding credit facility agreement with Pacific Western Bank, as lender.
Under the credit facility, Enova has issued a revolving note with an initial maximum principal balance of $150 million, which must be secured by 1.25x of the drawn amount in eligible receivables. The facility is nonrecourse to Enova and will mature July 22, 2023.
The facility is governed by a loan and security agreement between Enova and Pacific Western, dated July 23. It bears interest at a rate per year equal to the London Interbank Offered Rate plus an applicable margin, which initially has a rate of 4.00% per year.