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(1)

Represents the total forecasted collections we expect to collect on the Consumer Loans as a percentage of the repayments that we were contractually owed on the Consumer Loans at the time of assignment.  Contractual repayments include both principal and interest. Forecasted collection rates are negatively impacted by canceled Consumer Loans as the contractual amount owed is not removed from the denominator for purposes of computing forecasted collection rates in the table.

(2)	The forecasted collection rate for 2018 Consumer Loans as of December 31, 2018 includes both Consumer Loans that were in our portfolio as of September 30, 2018 and Consumer Loans assigned during the most recent quarter. The following table provides forecasted collection rates for each of these segments:

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(1)	Represents the repayments that we were contractually owed on Consumer Loans at the time of assignment, which include both principal and interest.

(2)	Represents advances paid to dealers on Consumer Loans assigned under our portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under our purchase program.  Payments of dealer holdback and accelerated dealer holdback are not included.

(3)	The averages for 2018 Consumer Loans include both Consumer Loans that were in our portfolio as of September 30, 2018 and Consumer Loans assigned during the most recent quarter. The following table provides averages for each of these segments:

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(1)	Represents advances paid to dealers on Consumer Loans assigned under our portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under our purchase program as a percentage of the initial balance of the Consumer Loans.  Payments of dealer holdback and accelerated dealer holdback are not included.

(2)	Presented as a percentage of total forecasted collections.

(3)	The forecasted collection rate, advance rate and spread for 2018 Consumer Loans as of December 31, 2018 include both Consumer Loans that were in our portfolio as of September 30, 2018 and Consumer Loans assigned during the most recent quarter. The following table provides forecasted collection rates, advance rates and spreads for each of these segments:

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(1)	The forecasted collection rates presented for dealer loans and purchased loans reflect the Consumer Loan classification at the time of assignment.

(1)	The forecasted collection rates and advance rates presented for dealer loans and purchased loans reflect the Consumer Loan classification at the time of assignment.

(2)	Represents advances paid to dealers on Consumer Loans assigned under our portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under our purchase program as a percentage of the initial balance of the Consumer Loans.  Payments of dealer holdback and accelerated dealer holdback are not included.

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(1)	Represents advances paid to dealers on Consumer Loans assigned under our portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under our purchase program.  Payments of dealer holdback and accelerated dealer holdback are not included.

(1)	Active dealers are dealers who have received funding for at least one Consumer Loan during the period.

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(1)	New active dealers are dealers who enrolled in our program and have received funding for their first dealer loan or purchased loan from us during the period.

(2)	Attrition is measured according to the following formula:  decrease in Consumer Loan unit volume from dealers who have received funding for at least one dealer loan or purchased loan during the comparable period of the prior year but did not receive funding for any dealer loans or purchased loans during the current period divided by prior year comparable period Consumer Loan unit volume.

(1)	Represents advances paid to dealers on Consumer Loans assigned under our portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under our purchase program.  Payments of dealer holdback and accelerated dealer holdback are not included.

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An increase in provision for income taxes of $103.8 million primarily due to an increase in our effective tax rate related to the enactment of the Tax Cuts and Jobs Act ("2017 Tax Act") in December 2017. While the 2017 Tax Act lowered our federal statutory income tax rate from 35% in 2017 to 21% in 2018, we were required to revalue deferred taxes and uncertain tax positions in 2017 at the lower federal statutory income tax rate, which resulted in a one-time reversal of $99.8 million of provision for income taxes during the fourth quarter of 2017.

•	An increase in interest expense of 31.4% ($10.1 million) primarily due to an increase in the average outstanding debt principal balance primarily due to borrowings used to fund the growth in our loan portfolio and stock repurchases.

•	An increase in operating expenses of 13.6% ($9.0 million) primarily due to an increase in salaries and wages expense of 16.5% ($6.3 million) comprised of the following:

•	An increase of $5.2 million in cash-based incentive compensation expense primarily due to an improvement in Company performance measures.

•	A decrease of $4.5 million in stock-based compensation expense primarily due to 2017 stock awards.

•	Excluding the changes in cash-based and stock-based incentive compensation expenses, salaries and wages expense increased $5.6 million, primarily related to our support function as a result of an increase in the number of team members.

•	An increase in finance charges of 19.6% ($51.5 million) primarily due to growth in our loan portfolio.

•	A decrease in provision for credit losses of 71.1% ($43.6 million) primarily due to the revision of our net cash flow timing forecast during the fourth quarter of 2017, which increased provision for credit losses for the three months ended December 31, 2017 by $41.6 million.

•	An increase in finance charges of 16.3% ($165.3 million) primarily due to growth in our loan portfolio.

•	A decrease in provision for credit losses of 56.0% ($72.4 million) primarily due to the revision of our net cash flow timing forecast during the fourth quarter of 2017, which increased provision for credit losses for the year ended December 31, 2017 by $41.6 million, and an improvement in Consumer Loan performance.

•	An increase in provision for income taxes of 59.4% ($67.5 million) primarily due to an increase in our effective tax rate related to the enactment of the 2017 Tax Act in December 2017 as discussed above.

•	An increase in operating expenses of 14.6% ($37.2 million) primarily due to:

•	An increase in salaries and wages expense of 19.8% ($27.7 million) comprised of the following:

•	An increase of $16.9 million in cash-based incentive compensation expense primarily due to an improvement in Company performance measures.

•	A decrease of $4.9 million in stock-based compensation expense primarily due to 2017 stock awards.

•	Excluding the changes in cash-based and stock-based incentive compensation expenses, salaries and wages expense increased $15.7 million, primarily related to our support function as a result of an increase in the number of team members.

•	An increase in sales and marketing expense of 15.9% ($9.3 million) primarily due to an increase in the size of our sales force and an increase in sales commissions related to growth in Consumer Loan assignment volume.

•	An increase in interest expense of 30.3% ($36.4 million) primarily due to an increase in the average outstanding debt principal balance primarily due to borrowings used to fund the growth in our loan portfolio and stock repurchases.

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•	A decrease in our estimated long-term effective income tax rate from 37% to 23% due to the enactment of the 2017 Tax Act in December 2017, which increased our adjusted return on capital by 240 basis points and increased our cost of capital by 80 basis points.

•	An increase in our adjusted average capital of 26.7% due to growth in our loan portfolio.

•	A decrease in our estimated long-term effective income tax rate from 37% to 23% due to the enactment of the 2017 Tax Act in December 2017, which increased our adjusted return on capital by 230 basis points and increased our cost of capital by 80 basis points.

•	An increase in our adjusted average capital of 26.8% due to growth in our loan portfolio.

•	A decrease in our adjusted return on capital of 100 basis points (excluding the impact of the 2017 Tax Act) primarily as a result of the following:

•	A decline in the yield on our loan portfolio decreased the adjusted return on capital by 110 basis points primarily due to the revision of our net cash flow timing forecast during the fourth quarter of 2017.

•	Slower growth in operating expenses increased the adjusted return on capital by 40 basis points as operating expenses grew 14.6% while adjusted average capital grew 26.8%.

(1)	Annualized.

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(1)

Adjustment to record taxes at our estimated long-term effective income tax rate. The adjustments for the three months ended March 31, 2018, June 30, 2018, September 30, 2018 and December 31, 2018 are calculated using a 23% income tax rate, which represents our estimated long-term effective income tax rate. Prior to the enactment of the 2017 Tax Act in December 2017, we used 37% to calculate after-tax adjustments, which was our long-term effective income tax rate for 2017 and prior years.

(2)	Net income per share is computed independently for each of the quarters presented. Therefore, the sum of quarterly net income per share information may not equal year-to-date net income per share.

(3)

The enactment of the 2017 Tax Act in December 2017 resulted in the reversal of $118.5 million of provision for income taxes to reflect the new federal statutory income tax rate, of which $99.8 million related to the reversal of GAAP provision for income taxes in December 2017 and $18.7 million related to the reversal of adjusted provision for income taxes in January 2018. This adjustment removes the impact of this reversal from adjusted average capital. We believe the income tax adjustment provides a more accurate reflection of the performance of our business as we are recognizing provision for income taxes at the applicable long-term effective tax rate for the period.

(4)	Annualized.

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(1)	Calculated by dividing GAAP net income by GAAP average shareholders' equity.

(2)	Adjusted return on capital is defined as adjusted net income plus adjusted interest expense (after-tax) divided by adjusted average capital.

(3)

The cost of capital includes both a cost of equity and a cost of debt.  The cost of equity capital is determined based on a formula that considers the risk of the business and the risk associated with our use of debt.  The formula utilized for determining the cost of equity capital is as follows: (the average 30-year Treasury rate + 5%) + [(1 – tax rate) x (the average 30-year Treasury rate + 5% – pre-tax average cost of debt rate) x average debt/(average equity + average debt x tax rate)].  For the periods presented, the average 30-year Treasury rate and the adjusted pre-tax average cost of debt were as follows:

(4)	Annualized.

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(1)

Adjustment to record taxes at our estimated long-term effective income tax rate. The adjustment for the year ended December 31, 2018 is calculated using a 23% income tax rate, which represents our estimated long-term effective income tax rate. Prior to the enactment of the 2017 Tax Act in December 2017, we used 37% to calculate after-tax adjustments, which was our long-term effective income tax rate for 2017 and prior years.

(2)

The enactment of the 2017 Tax Act in December 2017 resulted in the reversal of $118.5 million of provision for income taxes to reflect the new federal statutory income tax rate, of which $99.8 million related to the reversal of GAAP provision for income taxes in December 2017 and $18.7 million related to the reversal of adjusted provision for income taxes in January 2018. This adjustment removes the impact of this reversal from adjusted average capital. We believe the income tax adjustment provides a more accurate reflection of the performance of our business as we are recognizing provision for income taxes at the applicable long-term effective tax rate for the period.

(3)	Calculated by dividing GAAP net income by GAAP average shareholders' equity.

(4)	Adjusted return on capital is defined as adjusted net income plus adjusted interest expense after-tax divided by adjusted average capital.

(5)

The cost of capital includes both a cost of equity and a cost of debt.  The cost of equity capital is determined based on a formula that considers the risk of the business and the risk associated with our use of debt.  The formula utilized for determining the cost of equity capital is as follows: (the average 30-year Treasury rate + 5%) + [(1 - tax rate) x (the average 30-year Treasury rate + 5% - pre-tax average cost of debt rate) x average debt/(average equity + average debt x tax rate)].  For the periods presented, the average 30-year Treasury rate and the adjusted pre-tax average cost of debt were as follows:

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•	Our inability to accurately forecast and estimate the amount and timing of future collections could have a material adverse effect on results of operations.

•	We may be unable to execute our business strategy due to current economic conditions.

•	We may be unable to continue to access or renew funding sources and obtain capital needed to maintain and grow our business.

•	The terms of our debt limit how we conduct our business.

•	A violation of the terms of our asset-backed secured financing facilities or revolving secured warehouse facilities could have a material adverse impact on our operations.

•	The conditions of the U.S. and international capital markets may adversely affect lenders with which we have relationships, causing us to incur additional costs and reducing our sources of liquidity, which may adversely affect our financial position, liquidity and results of operations.

•	Our substantial debt could negatively impact our business, prevent us from satisfying our debt obligations and adversely affect our financial condition.

•	Due to competition from traditional financing sources and non-traditional lenders, we may not be able to compete successfully.

•	We may not be able to generate sufficient cash flows to service our outstanding debt and fund operations and may be forced to take other actions to satisfy our obligations under such debt.

•	Interest rate fluctuations may adversely affect our borrowing costs, profitability and liquidity.

•	Reduction in our credit rating could increase the cost of our funding from, and restrict our access to, the capital markets and adversely affect our liquidity, financial condition and results of operations.

•	We may incur substantially more debt and other liabilities.  This could exacerbate further the risks associated with our current debt levels.

•	The regulation to which we are or may become subject could result in a material adverse effect on our business.

•	Adverse changes in economic conditions, the automobile or finance industries, or the non-prime consumer market could adversely affect our financial position, liquidity and results of operations, the ability of key vendors that we depend on to supply us with services, and our ability to enter into future financing transactions.

•	Litigation we are involved in from time to time may adversely affect our financial condition, results of operations and cash flows.

•	Changes in tax laws and the resolution of uncertain income tax matters could have a material adverse effect on our results of operations and cash flows from operations.

•	Our dependence on technology could have a material adverse effect on our business.

•	Our use of electronic contracts could impact our ability to perfect our ownership or security interest in Consumer Loans.

•	Reliance on third parties to administer our ancillary product offerings could adversely affect our business and financial results.

•	We are dependent on our senior management and the loss of any of these individuals or an inability to hire additional team members could adversely affect our ability to operate profitably.

•	Our reputation is a key asset to our business, and our business may be affected by how we are perceived in the marketplace.

•	The concentration of our dealers in several states could adversely affect us.

•	Failure to properly safeguard confidential consumer and team member information could subject us to liability, decrease our profitability and damage our reputation.

•	A small number of our shareholders have the ability to significantly influence matters requiring shareholder approval and such shareholders have interests which may conflict with the interests of our other security holders.

•	Reliance on our outsourced business functions could adversely affect our business.

•	Our ability to hire and retain foreign information technology personnel could be hindered by immigration restrictions.

•	Natural disasters, acts of war, terrorist attacks and threats or the escalation of military activity in response to these attacks or otherwise may negatively affect our business, financial condition and results of operations.

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