Atlanticus Holdings Corporation (NASDAQ: ATLC) has announced the closing of the underwriters' option in connection with its underwritten registered public offering of 9.25% Senior Notes due 2029. The company issued an additional 290,000 Notes and received additional net proceeds of approximately $7.0 million after deducting underwriting discounts and commissions, but before deducting expenses and the structuring fee. The Notes are listed on the Nasdaq Global Select Market under the symbol "ATLCZ."
B. Riley Securities, Inc., Janney Montgomery Scott LLC, Ladenburg Thalmann & Co. Inc., William Blair & Co., L.L.C., and BTIG, LLC acted as book-running managers for the Offering, with Brownstone Investment Group, LLC acting as co-manager for the Offering. Troutman Pepper Hamilton Sanders LLP acted as legal counsel to the Company, while Duane Morris LLP acted as legal counsel to the underwriters.
The Offering of these Notes was made pursuant to an effective shelf registration statement on Form S-3, which was initially filed with the Securities and Exchange Commission (SEC) on May 6, 2021, and declared effective by the SEC on May 13, 2021. The Offering was made only by means of a prospectus and prospectus supplement.
Regarding the company's outlook, Atlanticus Holdings Corporation aims to empower better financial outcomes for everyday Americans through its technology, which allows bank, retail, and healthcare partners to offer more inclusive financial services. The company applies its experience and infrastructure from servicing over 18 million customers and $38 billion in consumer loans over its more than 25-year operating history to support lenders in originating a range of consumer loan products.
The company's management stated, "We are pleased to have closed the underwriters' option and are excited about the additional net proceeds this will provide. This Offering aligns with our mission to enable our partners to offer more inclusive financial services, and we are confident in the value this will bring to everyday Americans."
The company's shares have moved 7.4%, and are now trading at a price of $32.95.
The company's full 8-K submission is available here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $161 | $344 | $563 | $748 | $1,047 | $1,116 |
| Revenue Growth | n/a | 113.2% | 63.97% | 32.77% | 39.95% | 6.59% |
| Interest Income (MM) | $37 | $51 | $52 | $54 | $82 | $101 |
| Operating Margins | 2% | 9% | 20% | 28% | 14% | 11% |
| Net Margins | 5% | 8% | 17% | 24% | 13% | 9% |
| Net Income (MM) | $8 | $26 | $94 | $178 | $136 | $101 |
| Depreciation & Amort. (MM) | $1 | $1 | $1 | $1 | $2 | $2 |
| Earnings Per Share | $0.56 | $1.66 | $3.95 | $7.56 | $5.83 | $4.13 |
| EPS Growth | n/a | 196.43% | 137.95% | 91.39% | -22.88% | -29.16% |
| Diluted Shares (MM) | 14 | 15 | 20 | 21 | 19 | 19 |
| Free Cash Flow (MM) | $41 | $100 | $212 | $212 | $346 | $427 |
Atlanticus has exceptional EPS growth, generally positive cash flows, and decent operating margins with a positive growth rate.
