SEC Comment Letter for Atlanticus Holdings Corp (ATLC, ATLCL, ATLCP, ATLCZ) (CIK 0001464343) (ATLC) — Dec 6, 2017
Atlanticus Holdings Corp (ATLC, ATLCL, ATLCP, ATLCZ) (CIK 0001464343)
Date: Dec. 6, 2017 · CIK: 0001464343 · Accession: 0000000000-17-042613
AI Filing Summary & Sentiment
File numbers found in text: 000-53717
Letter
Mail Stop 4720 December 5 , 2017 William R. McCamey Chief Financial Officer Atlanticus Holding s Corporation Five Concourse Parkway, Suite 300 Atlanta, Georgia 30328
Re: Atlanticus Holding s Corporation Form 10 -K for the Fis cal Year Ended December 31, 2016 Filed March 31, 2017 File No. 000-53717
Dear Mr. McCamey :
We have limited our review of your filing to the financial statements and related disclosures and have the following comments. In some of our comments, we may ask you to provide us with information so we may better understand your disclosure.
Please respond to these comments within ten busine ss days by providing the requested information or advis e us as soon as possible when you will respond. If you do not believe our comments apply to your facts and circumstances, please tell us why in your response.
After r eviewing your response to these comments, we may have additional comments.
Form 10 -K for the Fiscal Year Ended December 31, 2016
Item 1. Business
How Do We Collect?, page 3
1. We note on page 4 that you “re -age” customer accounts and that th is may affect delinquencies and charge -offs, potentially delaying or reducing such delinquencies and charge -offs. Please tell us and revise future filings to describe in detail for each period presented and by class of receivable, the amount of receivable s re-aged at period end, describe the nature and terms of the modifications to re -aged accounts, more clearly describe how the re -aging provides a benefit to the customer and quantify the estimated impact to delinquent loans and charge -offs. Please provide us your proposed revised disclosures in your response .
William R. McCamey Atlanticus Holding s Corp oration December 5 , 2017 Page 2
2. Please tell us how you determined that re -aged receivables are not troubled debt restructurings considering the guidance in ASC 310 -40.
Item 7. Management’s Discussion and Analysis of Financ ial Condition and Results of Operations
Credit and Other Investments Segment, page 23
3. Please revise future filings to provide discussion and a nalysis, including asset quality and yield metrics, based on the nature of the receivables (e.g. point -of-sale, direct -to- consumer personal finance, etc.) for your Credit and Other Investments segment . Also, please disclose the receivables balance at each period end and the o riginat ions during each period by the nature of receivable . Please provide us your proposed revised disclosures in your response .
Definitions of Financial Operating and Statistical Measures, page 28
4. We note your definition of Total Yield Ratio, Combined Gross Charge -off R atio, and Adjusted C harge -off Ratio on page 28 and your discussio n of Managed Receivables on page 23. These financial measures appear to be non -GAAP as defined by Regulation G and Item 10(e) of Regulation S -K as they are not require d by GAAP or Commission Rules. Please revise future filings to include the disclosures r equired by Regulation G and Item 10 of Regulation S -K. Please ensure that your revised disclosure presents the most directly comparable GAAP measure with equal or greater prominence. Please provide us your proposed revised disclosures in your response .
5. Please tell us how you considered whether the se measures use an individually tailored recognition and measurement method which could violate Rule 100(b) of Regulation G. Please refer to Question 100.04 of the Compliance and Disclosure Interpretations for guidance.
William R. McCamey Atlanticus Holding s Corp oration December 5 , 2017 Page 3
We remind you that the company and its management are responsible for the accuracy and adequacy of their disclosures, notwithstanding any review, comments, action or absence of action by the staff.
You may contact William Schroeder, Staff Accountant, at (202) 551 -3294 or me at (202) 551-3437 with any questions.
Sincerely,
/s/ Michael Volley
Show Raw Text
Mail Stop 4720
December 5 , 2017
William R. McCamey
Chief Financial Officer
Atlanticus Holding s Corporation
Five Concourse Parkway, Suite 300
Atlanta, Georgia 30328
Re: Atlanticus Holding s Corporation
Form 10 -K for the Fis cal Year Ended December 31, 2016
Filed March 31, 2017
File No. 000-53717
Dear Mr. McCamey :
We have limited our review of your filing to the financial statements and related
disclosures and have the following comments. In some of our comments, we may ask you to
provide us with information so we may better understand your disclosure.
Please respond to these comments within ten busine ss days by providing the requested
information or advis e us as soon as possible when you will respond. If you do not believe our
comments apply to your facts and circumstances, please tell us why in your response.
After r eviewing your response to these comments, we may have additional comments.
Form 10 -K for the Fiscal Year Ended December 31, 2016
Item 1. Business
How Do We Collect?, page 3
1. We note on page 4 that you “re -age” customer accounts and that th is may affect
delinquencies and charge -offs, potentially delaying or reducing such delinquencies and
charge -offs. Please tell us and revise future filings to describe in detail for each period
presented and by class of receivable, the amount of receivable s re-aged at period end,
describe the nature and terms of the modifications to re -aged accounts, more clearly
describe how the re -aging provides a benefit to the customer and quantify the estimated
impact to delinquent loans and charge -offs. Please provide us your proposed revised
disclosures in your response .
William R. McCamey
Atlanticus Holding s Corp oration
December 5 , 2017
Page 2
2. Please tell us how you determined that re -aged receivables are not troubled debt
restructurings considering the guidance in ASC 310 -40.
Item 7. Management’s Discussion and Analysis of Financ ial Condition and Results of
Operations
Credit and Other Investments Segment, page 23
3. Please revise future filings to provide discussion and a nalysis, including asset quality and
yield metrics, based on the nature of the receivables (e.g. point -of-sale, direct -to-
consumer personal finance, etc.) for your Credit and Other Investments segment . Also,
please disclose the receivables balance at each period end and the o riginat ions during
each period by the nature of receivable . Please provide us your proposed revised
disclosures in your response .
Definitions of Financial Operating and Statistical Measures, page 28
4. We note your definition of Total Yield Ratio, Combined Gross Charge -off R atio, and
Adjusted C harge -off Ratio on page 28 and your discussio n of Managed Receivables on
page 23. These financial measures appear to be non -GAAP as defined by Regulation G
and Item 10(e) of Regulation S -K as they are not require d by GAAP or Commission
Rules. Please revise future filings to include the disclosures r equired by Regulation G and
Item 10 of Regulation S -K. Please ensure that your revised disclosure presents the most
directly comparable GAAP measure with equal or greater prominence. Please provide us
your proposed revised disclosures in your response .
5. Please tell us how you considered whether the se measures use an individually tailored
recognition and measurement method which could violate Rule 100(b) of Regulation G.
Please refer to Question 100.04 of the Compliance and Disclosure Interpretations for
guidance.
William R. McCamey
Atlanticus Holding s Corp oration
December 5 , 2017
Page 3
We remind you that the company and its management are responsible for the accuracy
and adequacy of their disclosures, notwithstanding any review, comments, action or absence of
action by the staff.
You may contact William Schroeder, Staff Accountant, at (202) 551 -3294 or me at (202)
551-3437 with any questions.
Sincerely,
/s/ Michael Volley
Michael Volley
Staff Accountant
Office of Financial Services