FlexShopper, Inc. Reports 2024 First Quarter and Year End Financial Results
14 5월 2024 - 5:30AM
FlexShopper, Inc. (Nasdaq:FPAY) (“FlexShopper”), a leading national
online lease-to-own (“LTO”) retailer and payment solution provider
for underserved consumers, today announced its financial results
for the quarter ended March 31, 2024.
Results for Quarter Ended March 31,
2024, vs. Quarter Ended March 31, 2023:
- Total fundings decreased 1.1% to
$26.0 million from $26.3 million
- Total revenues increased 10.1% to
$33.9 million from $30.8 million
- Gross profit increased 30.9% to
$17.8 million from $13.6 million
- Adjusted EBITDA1 increased by $1.2
million to $7.6 million from $6.4 million
- Operating income increased 19.0% to
$5.0 million from $4.2 million
- Net loss attributable to common
stockholders of $(1.3) million, or $(0.06) per diluted share,
compared to net loss attributable to common stockholders of $(1.2)
million, or $(0.06) per diluted share
- Core earnings1 increased 64.7% to a
gain of $354 thousand from a gain of $215 thousand
Conference Call and Webcast Details
Conference call
Date: Tuesday, May 14, 2024Time: 8:00 a.m. Eastern
TimeParticipant Dial-In Numbers:
Domestic callers: (877) 407-2988International callers: +1 (201)
389-0923
Webcast:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=rigoYWk3
The call will also be simultaneously webcast
over the Internet via the “Investor” section of the Company’s
website at www.flexshopper.com or by clicking on the conference
call link:
https://hd.choruscall.com/InComm/?callme=true&passcode=13730035&h=true&info=company&r=true&B=6
An audio replay of the call will be archived on the Company’s
website.
1 |
Adjusted EBITDA and core earnings are a non-GAAP financial measure.
Refer to the definition and reconciliation of these measures under
“Non-GAAP Measures”. |
|
FLEXSHOPPER, INC.CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS(unaudited) |
|
|
For the three
months endedMarch 31, |
|
|
2024 |
|
|
2023 |
|
Revenues: |
|
|
|
|
|
Lease revenues and fees, net |
$ |
25,833,736 |
|
|
$ |
24,714,158 |
|
Loan revenues and fees, net of
changes in fair value |
|
7,331,277 |
|
|
|
6,071,617 |
|
Retail revenues |
|
779,860 |
|
|
|
- |
|
Total revenues |
|
33,944,873 |
|
|
|
30,785,775 |
|
|
|
|
|
|
|
|
|
Costs and
expenses: |
|
|
|
|
|
|
|
Depreciation and impairment of
lease merchandise |
|
14,685,863 |
|
|
|
15,345,788 |
|
Loan origination costs and
fees |
|
821,827 |
|
|
|
1,833,627 |
|
Cost of retail revenues |
|
611,204 |
|
|
|
- |
|
Marketing |
|
1,765,572 |
|
|
|
1,099,189 |
|
Salaries and benefits |
|
4,083,918 |
|
|
|
2,726,890 |
|
Operating expenses |
|
6,932,507 |
|
|
|
5,627,708 |
|
Total costs and
expenses |
|
28,900,891 |
|
|
|
26,633,202 |
|
|
|
|
|
|
|
|
|
Operating
income |
|
5,043,982 |
|
|
|
4,152,573 |
|
|
|
|
|
|
|
|
|
Interest expense including
amortization of debt issuance costs |
|
5,315,094 |
|
|
|
4,531,327 |
|
Loss before income taxes |
|
(271,112 |
) |
|
|
(378,754 |
) |
Benefit from income taxes |
|
56,933 |
|
|
|
148,539 |
|
Net loss |
|
(214,179 |
) |
|
|
(230,215 |
) |
|
|
|
|
|
|
|
|
Dividends on Series 2
Convertible Preferred Shares |
|
1,069,456 |
|
|
|
972,233 |
|
Net loss attributable
to common and Series 1 Convertible Preferred
shareholders |
$ |
(1,283,635 |
) |
|
$ |
(1,202,448 |
) |
|
|
|
|
|
|
|
|
Basic and diluted loss
per common share: |
|
|
|
|
|
|
|
Basic |
$ |
(0.06 |
) |
|
$ |
(0.06 |
) |
Diluted |
$ |
(0.06 |
) |
|
$ |
(0.06 |
) |
WEIGHTED AVERAGE COMMON
SHARES: |
|
|
|
|
|
|
|
Basic |
|
21,586,019 |
|
|
|
21,751,304 |
|
Diluted |
|
21,586,019 |
|
|
|
21,751,304 |
|
|
FLEXSHOPPER, INC.CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
|
March 31,2024 |
|
|
December 31,2023 |
|
|
(unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
Cash |
$ |
5,593,750 |
|
|
$ |
4,413,130 |
|
Lease receivables, net |
|
49,316,032 |
|
|
|
44,795,090 |
|
Loan receivables at fair
value |
|
39,457,230 |
|
|
|
35,794,290 |
|
Prepaid expenses and other
assets |
|
3,308,255 |
|
|
|
3,300,677 |
|
Lease merchandise, net |
|
25,896,510 |
|
|
|
29,131,440 |
|
Total current assets |
|
123,571,777 |
|
|
|
117,434,627 |
|
|
|
|
|
|
|
|
|
Property and equipment,
net |
|
9,588,238 |
|
|
|
9,308,859 |
|
Right of use asset, net |
|
1,190,482 |
|
|
|
1,237,010 |
|
Intangible assets, net |
|
12,948,971 |
|
|
|
13,391,305 |
|
Other assets, net |
|
2,313,988 |
|
|
|
2,175,215 |
|
Deferred tax asset, net |
|
13,000,294 |
|
|
|
12,943,361 |
|
Total assets |
$ |
162,613,750 |
|
|
$ |
156,490,377 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
|
|
Accounts payable |
$ |
3,370,054 |
|
|
$ |
7,139,848 |
|
Accrued payroll and related
taxes |
|
700,208 |
|
|
|
578,197 |
|
Promissory notes to related
parties, including accrued interest |
|
198,398 |
|
|
|
198,624 |
|
Accrued expenses |
|
4,498,602 |
|
|
|
3,972,397 |
|
Lease liability - current
portion |
|
253,936 |
|
|
|
245,052 |
|
Total current liabilities |
|
9,021,198 |
|
|
|
12,134,118 |
|
Loan payable under credit
agreement to beneficial shareholder, net of unamortized issuance
costs of $1,500,000 at March 31, 2024 and $70,780 at December 31,
2023 |
|
105,566,690 |
|
|
|
96,384,220 |
|
Promissory notes to related
parties, net of unamortized issuance cost of $535,256 at March 31,
2024 and $649,953 at December 31, 2023, and net of current
portion |
|
10,214,744 |
|
|
|
10,100,047 |
|
Loan payable under Basepoint
credit agreement, net of unamortized issuance costs of $83,347 at
March 31, 2024 and $92,963 at December 31, 2023 |
|
7,329,258 |
|
|
|
7,319,641 |
|
Lease liabilities, net of
current portion |
|
1,254,239 |
|
|
|
1,321,578 |
|
Total liabilities |
|
133,386,129 |
|
|
|
127,259,604 |
|
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Series 1 Convertible Preferred
Stock, $0.001 par value - authorized 250,000 shares, issued and
outstanding 170,332 shares at $5.00 stated value |
|
851,660 |
|
|
|
851,660 |
|
Series 2 Convertible Preferred
Stock, $0.001 par value - authorized 25,000 shares, issued and
outstanding 21,952 shares at $1,000 stated value |
|
21,952,000 |
|
|
|
21,952,000 |
|
Common stock, $0.0001 par
value - authorized 40,000,000 shares, issued and outstanding
21,752,304 shares at March 31, 2024 and 21,752,304 shares at
December 31, 2023 |
|
2,176 |
|
|
|
2,176 |
|
Treasury shares, at cost -
169,447 shares at March 31, 2024 and 164,029 shares at December 31,
2023 |
|
(172,855 |
) |
|
|
(166,757 |
) |
Additional paid in
capital |
|
42,633,019 |
|
|
|
42,415,894 |
|
Accumulated deficit |
|
(36,038,379 |
) |
|
|
(35,824,200 |
) |
Total stockholders’
equity |
|
29,227,621 |
|
|
|
29,230,773 |
|
|
$ |
162,613,750 |
|
|
$ |
156,490,377 |
|
|
FLEXSHOPPER, INC.CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWSFor the three months ended March 31, 2024 and
2023(unaudited) |
|
|
2024 |
|
|
2023 |
|
CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
|
|
|
Net loss |
$ |
(214,179 |
) |
|
$ |
(230,215 |
) |
Adjustments to reconcile net
loss to net cash (used in)/provided by operating activities: |
|
|
|
|
|
|
|
Depreciation and impairment of
lease merchandise |
|
14,685,863 |
|
|
|
15,345,788 |
|
Other depreciation and
amortization |
|
2,315,487 |
|
|
|
1,826,157 |
|
Amortization of debt issuance
costs |
|
195,095 |
|
|
|
70,367 |
|
Amortization of discount on
the promissory note related to acquisition |
|
- |
|
|
|
59,239 |
|
Compensation expense related
to stock-based compensation |
|
217,125 |
|
|
|
420,748 |
|
Provision for doubtful
accounts |
|
9,484,049 |
|
|
|
11,238,415 |
|
Interest in kind added to
promissory notes balance |
|
- |
|
|
|
1,351 |
|
Deferred income tax |
|
(56,933 |
) |
|
|
(148,539 |
) |
Net changes in the fair value
of loans receivables at fair value |
|
(4,211,396 |
) |
|
|
(984,652 |
) |
Changes in operating assets
and liabilities: |
|
|
|
|
|
|
|
Lease receivables |
|
(14,004,991 |
) |
|
|
(12,852,307 |
) |
Loans receivables at fair value |
|
548,456 |
|
|
|
4,599,208 |
|
Prepaid expenses and other assets |
|
(19,349 |
) |
|
|
576,689 |
|
Lease merchandise |
|
(11,450,933 |
) |
|
|
(10,703,452 |
) |
Purchase consideration payable related to acquisition |
|
- |
|
|
|
141,275 |
|
Lease liabilities |
|
(9,665 |
) |
|
|
(6,032 |
) |
Accounts payable |
|
(3,769,794 |
) |
|
|
(2,668,765 |
) |
Accrued payroll and related taxes |
|
122,011 |
|
|
|
254,550 |
|
Accrued expenses |
|
525,976 |
|
|
|
(1,340,486 |
) |
Net cash (used in)/provided by
operating activities |
|
(5,643,178 |
) |
|
|
5,599,339 |
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES |
|
|
|
|
|
|
|
Purchases of property and
equipment, including capitalized software costs |
|
(1,815,091 |
) |
|
|
(1,753,800 |
) |
Purchases of data costs |
|
(464,441 |
) |
|
|
(169,082 |
) |
Net cash used in investing
activities |
|
(2,279,532 |
) |
|
|
(1,922,882 |
) |
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES |
|
|
|
|
|
|
|
Proceeds from loan payable
under credit agreement |
|
10,611,690 |
|
|
|
2,750,000 |
|
Repayment of loan payable
under credit agreement |
|
- |
|
|
|
(2,575,000 |
) |
Debt issuance related
costs |
|
(1,500,000 |
) |
|
|
- |
|
Proceeds from exercise of
stock options |
|
- |
|
|
|
1,185 |
|
Principal payment under
finance lease obligation |
|
(2,262 |
) |
|
|
(2,526 |
) |
Repayment of purchase
consideration payable related to acquisition |
|
- |
|
|
|
(153,938 |
) |
Purchases of treasury
stock |
|
(6,098 |
) |
|
|
- |
|
Net cash provided by financing
activities |
|
9,103,330 |
|
|
|
19,721 |
|
|
|
|
|
|
|
|
|
INCREASE IN CASH |
|
1,180,620 |
|
|
|
3,696,178 |
|
|
|
|
|
|
|
|
|
CASH, beginning of period |
|
4,413,130 |
|
|
|
6,173,349 |
|
|
|
|
|
|
|
|
|
CASH, end of period |
$ |
5,593,750 |
|
|
$ |
9,869,527 |
|
|
|
|
|
|
|
|
|
Supplemental cash flow
information: |
|
|
|
|
|
|
|
Interest paid |
$ |
5,057,635 |
|
|
$ |
3,867,982 |
|
Non-GAAP Measures
We regularly review a number of metrics,
including the following key metrics, to evaluate our business,
measure our performance, identify trends affecting our business,
formulate financial projections and make strategic decisions.
Adjusted EBITDA represents net income before
interest, stock-based compensation, taxes, depreciation (other than
depreciation of leased merchandise), amortization, and one-time or
non-recurring items. We believe that Adjusted EBITDA provides us
with an understanding of one aspect of earnings before the impact
of investing and financing charges and income taxes.
Core earnings represents the GAAP net earnings/
(loss) adjusted for “special items” that we view as extraordinary,
unusual, or non-recurring in nature or which we believe do not
reflect our core business activities.
Key performance metrics for the three months
ended March 31, 2024 and 2023 are as follows:
|
Three months endedMarch 31, |
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
Adjusted
EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(214,179 |
) |
|
$ |
(230,215 |
) |
|
$ |
16,036 |
|
|
|
(7.0 |
) |
Income taxes |
|
(56,933 |
) |
|
|
(148,539 |
) |
|
|
91,606 |
|
|
|
(61.7 |
) |
Amortization of debt issuance
costs |
|
195,095 |
|
|
|
70,367 |
|
|
|
124,728 |
|
|
|
177.3 |
|
Amortization of discount on
the promissory note related to acquisition |
|
- |
|
|
|
59,239 |
|
|
|
(59,239 |
) |
|
|
(100.0 |
) |
Other amortization and
depreciation |
|
2,315,487 |
|
|
|
1,826,157 |
|
|
|
489,330 |
|
|
|
26.8 |
|
Interest expense |
|
5,119,999 |
|
|
|
4,401,721 |
|
|
|
718,278 |
|
|
|
16.3 |
|
Stock-based compensation |
|
217,125 |
|
|
|
420,748 |
|
|
|
(203,623 |
) |
|
|
(48.4 |
) |
Adjusted EBITDA |
$ |
7,576,594 |
|
|
$ |
6,399,478 |
|
|
$ |
1,177,116 |
|
|
|
18.4 |
|
|
Three months endedMarch 31, |
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
Core
earnings: |
|
|
|
|
|
|
|
|
|
|
|
GAAP results- Net loss |
$ |
(214,179 |
) |
|
$ |
(230,215 |
) |
|
$ |
16,036 |
|
|
|
(7.0 |
) |
Acquired intangible assets
amortization |
|
442,334 |
|
|
|
442,334 |
|
|
|
- |
|
|
|
- |
|
Non recurring employment
expenses |
|
126,144 |
|
|
|
2,826 |
|
|
|
123,318 |
|
|
|
4,364.7 |
|
Non-GAAP adjusted results-
Core earnings |
$ |
354,299 |
|
|
$ |
214,945 |
|
|
$ |
139,354 |
|
|
|
64.8 |
|
The Company refers to Adjusted EBITDA in the
above table as the Company uses this measure to evaluate operating
performance and to make strategic decisions about the Company.
Management believes that Adjusted EBITDA provides relevant and
useful information which is widely used by analysts, investors and
competitors in its industry in assessing performance.
The Company refers to Core earnings in the above
table as the Company uses this additional measurement to assist our
executive team in comparing our performance on a more consistent
basis for purposes of business decision-making by removing the
impact of certain items management believes do not directly reflect
our core operations.
About FlexShopper
FlexShopper, Inc. (FPAY) is a financial
technology company that provides electronics, home furnishings and
other durable goods to underserved consumers on a lease-to-own
(LTO) basis through its patented e-commerce marketplace
(www.FlexShopper.com). FlexShopper also provides LTO and loan
technology platforms to a growing number of retailers and
e-retailers to facilitate transactions with consumers without
access to traditional financing.
Forward-Looking Statements
All statements in this release that are not
based on historical fact are “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements, which are based on certain assumptions and describe our
future plans, strategies and expectations, can generally be
identified by the use of forward-looking terms such as “believe,”
“expect,” “may,” “will,” “should,” “could,” “seek,” “intend,”
“plan,” “goal,” “estimate,” “anticipate,” or other comparable
terms. Examples of forward-looking statements include, among
others, statements we make regarding expectations of lease
originations, the expansion of our lease-to-own program;
expectations concerning our partnerships with retail partners;
investments in, and the success of, our underwriting technology and
risk analytics platform; our ability to collect payments due from
customers; expected future operating results and expectations
concerning our business strategy. Forward-looking statements
involve inherent risks and uncertainties which could cause actual
results to differ materially from those in the forward-looking
statements, as a result of various factors including, among others,
the following: our ability to obtain adequate financing to fund our
business operations in the future; the failure to successfully
manage and grow our FlexShopper.com e-commerce platform; our
ability to maintain compliance with financial covenants under our
credit agreement; our dependence on the success of our third-party
retail partners and our continued relationships with them; our
compliance with various federal, state and local laws and
regulations, including those related to consumer protection; the
failure to protect the integrity and security of customer and
employee information; and the other risks and uncertainties
described in the Risk Factors and in Management’s Discussion and
Analysis of Financial Condition and Results of Operations sections
of our Annual Report on Form 10-K and subsequently filed Quarterly
Reports on Form 10-Q. The forward-looking statements made in this
release speak only as of the date of this release, and FlexShopper
assumes no obligation to update any such forward-looking statements
to reflect actual results or changes in expectations, except as
otherwise required by law.
Contact:
FlexShopper, Inc.Investor
Relationsir@flexshopper.com
FlexShopper, Inc.
FlexShopper (NASDAQ:FPAY)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024
FlexShopper (NASDAQ:FPAY)
과거 데이터 주식 차트
부터 6월(6) 2023 으로 6월(6) 2024