Enova International, Inc.

Good afternoon, everyone, and welcome to the Inova International second quarter 2020 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please know a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star and then one. To withdraw your questions, you may press star and two. Please also note today's event is being recorded. And at this time, I'd like to turn the comments all over to Monica Gould, Investor Relations for Innova. Ma'am, please go ahead.

Thank you, Operator, and good afternoon, everyone. Innova released results for the second quarter of 2020, ended June 30, 2020, this afternoon after the market closed. Innova also announced its intent to acquire OnDeck Capital. If you did not receive a copy of either our earnings press release or the transaction release, You may obtain both documents from the Investor Relations section of our website at ir.inova.com, along with a presentation discussing the transaction. With me on today's call are David Fisher, Chief Executive Officer of Inova, Noah Breslow, Chairman and CEO of OnDeck, and Steve Cunningham, Chief Financial Officer of Inova. This call is being webcast and will be archived on the Investor Relations section of Inova's website. Before I turn the call over to David, I'd like to note that today's discussion will contain forward-looking statements and, as such, is subject to risks and uncertainties. These risks and uncertainties include those risk factors discussed in the most recent reports on Form 10Q and 10K filed by each company, as well as those discussed in the joint press release announcing this acquisition. Any forward-looking statements that are made on this call are based on assumptions as of today. and we undertake no obligation to update these statements as a result of new information or future events. In addition to US GAAP reporting, Inova reports certain financial measures that do not conform to generally accepted accounting principles. We believe these non-GAAP measures enhance the understanding of our performance. Reconciliations between these GAAP and non-GAAP measures are included in the tables found in today's press release. As noted in our earnings release, we have posted supplemental financial information on the IR portion of our website. And with that, I'd like to turn the call over to David.

Thanks, Monica, and good afternoon, everyone. Thank you for joining our call today. As I'm sure you've all seen by now, we just announced that we have signed an agreement to acquire OnDeck Capital. So first, I'll review the transaction, and joining me is Noah Brezel, OnDeck's CEO and Chairman of the Board, who will share his thoughts as well. Anna will provide an overview of our second quarter results and update you on our strategy and outlook for 2020. After that, I'll turn the call over to Steve Cunningham, our CFO, who will discuss our financial results and outlook in more detail. I know many of you are very familiar with OnDeck. They are a leader in non-bank lending to small businesses. We believe this transaction brings together two highly complementary market-leading businesses with world-class capabilities in both consumer and small business lending. Together, we had approximately $5 billion in originations in 2019. And cumulatively, we served approximately 7 million customers. Like Innova, OnDeck is 100% online, and also like us, is a pioneer in using analytics, data, and technology to make real-time lending decisions. We welcome its talented team to Inova, who will increase our scale and resources, enabling us to accelerate growth in our increasingly diversified portfolio. We believe we have well-aligned, innovative, and customer-oriented cultures led by experienced management teams who are committed to creating a great place to work for team members. In terms of leadership, Inova will become vice chairman of Inova, and will join my management team. I will continue to serve as CEO and Chairman of the Board of Inova. Bringing our two companies together will meaningfully expand our small business offering to create a combined company with significant scale and expanded diversified products in consumer and small business markets that banks and credit unions have difficulty serving. As of March 31, 2020, The combined companies had gross receivables of $2.4 billion, 61% of which are small business assets and 39% consumer assets. For the full year 2019, on a pro forma basis, including anticipated synergies, Innova and OnDeck would have estimated combined gross revenue of over $1.6 billion, adjusted EBITDA of over $425 million, and adjusted earnings of $215 million. We expect to have industry-leading profitability metrics and with ANOVA's strong liquidity, proven ability to access capital markets, and a well-capitalized balance sheet. We are in a great position to drive growth and help small businesses and consumers whose need for access to credit is even more critical in the wake of the COVID pandemic and current economic environment. We will also benefit from increased scale and financial strength, diversified revenues, robust cash flows, and increased flexibility to drive growth, profitability, and shareholder value. Finally, my team and I have a strong history of executing and integrating successful transactions, which allow us to create significant shareholder value. We expect to achieve a $50 million in annual cost synergies by 2022, primarily from eliminating duplicative resources, as well as $15 million in run rate revenue synergies. The transaction is expected to be accretive in the first year post-closing and generate non-GAAP earnings per share accretion of more than 40% when the synergies are fully realized. Before I discuss our second quarter results, I would like to introduce Noah Breslow, OnDeck's chairman and CEO, to tell you a little bit more about OnDeck. Noah?