Revenue increased 35% year over year to $124.2 million for the third quarter of 2022
Net Originations increased 11% year over year to $182.7 million for the third quarter of 2022
Ending Receivables increased 39% year over year to $407.7 million for the third quarter of 2022
Net loss of $(0.7) million for the third quarter of 2022
Adjusted Net Income of $0.8 million for the third quarter of 2022
Basic and Diluted EPS of $(0.04) and $(0.04), respectively, for the third quarter of 2022
Adjusted EPS of $0.01 for the third quarter of 2022
OppFi Inc. (NYSE: OPFI) (“OppFi” or the “Company”), a leading financial technology platform that powers banks to help the everyday consumer gain access to credit, today reported financial results for the third quarter ended September 30, 2022.
“We are pleased with our performance in the third quarter, which was in-line with our expectations,” said Todd Schwartz, Chief Executive Officer and Executive Chairman of OppFi. “Following the most significant adjustments to credit models in our company’s history, we ended the quarter with substantially lower early delinquency rates sequentially for both new and refinanced loans. In addition, we extended operational efficiencies, as demonstrated by the solid scaling of our expense structure.”
“We are confident that the quality of the portfolio will continue to strengthen, as new vintage loans become an increasingly larger percentage of the portfolio, and non-performing loans continue to cycle out,” concluded Schwartz. “Therefore, we are optimistic that profitability will rebound in 2023, with the quarterly cadence accelerating throughout the year, as the net charge-off rate improves sequentially and growth efficiency initiatives further scale our expenses.”
Financial Summary
The following tables present a summary of OppFi’s results for the three months ended September 30, 2022 and 2021.
(in thousands, except per share data) Unaudited |
|
Three Months Ended September 30, |
|
Change |
||||||
|
|
|
2022 |
|
|
|
2021 |
|
% |
|
Total revenue |
|
$ |
124,244 |
|
|
$ |
91,977 |
|
35.1 |
% |
Net (loss) income |
|
$ |
(661 |
) |
|
$ |
30,392 |
|
(102.2 |
)% |
Adjusted net income |
|
$ |
768 |
|
|
$ |
17,362 |
|
(95.6 |
)% |
Adjusted EBITDA |
|
$ |
13,215 |
|
|
$ |
31,778 |
|
(58.4 |
)% |
Basic EPS |
|
$ |
(0.04 |
) |
|
$ |
1.06 |
|
(103.9 |
)% |
Diluted EPS |
|
$ |
(0.04 |
) |
|
$ |
0.29 |
|
(113.8 |
)% |
Adjusted EPS |
|
$ |
0.01 |
|
|
$ |
0.21 |
|
(95.6 |
)% |
(in thousands, except per share data) Unaudited |
|
Nine Months Ended September 30, |
|
Change |
|||||
|
|
|
2022 |
|
|
2021 |
|
% |
|
Total revenue |
|
$ |
332,829 |
|
$ |
254,610 |
|
30.7 |
% |
Net income |
|
$ |
8,539 |
|
$ |
72,763 |
|
(88.3 |
)% |
Adjusted net income |
|
$ |
7,793 |
|
$ |
54,439 |
|
(85.7 |
)% |
Adjusted EBITDA |
|
$ |
43,943 |
|
$ |
96,413 |
|
(54.4 |
)% |
Basic EPS(a) |
|
$ |
0.29 |
|
$ |
1.08 |
|
(73.1 |
)% |
Diluted EPS(a) |
|
$ |
0.09 |
|
$ |
0.29 |
|
(69.0 |
)% |
Adjusted EPS |
|
$ |
0.09 |
|
$ |
0.64 |
|
(85.7 |
)% |
a. |
For the periods prior to July 20, 2021, earnings per share was not calculated, as net income prior to the Business Combination was attributable entirely to OppFi-LLC. |
Third Quarter Key Performance Metrics
The following tables represent key quarterly metrics.
(in thousands, except marketing cost per loan information) Unaudited |
|
As of and for the Three Months Ended, |
||||||||||
|
|
September 30,
|
|
June 30, 2022 |
|
September 30,
|
||||||
Total Net Originations(a) |
|
$ |
182,724 |
|
|
$ |
226,201 |
|
|
$ |
164,547 |
|
Ending Receivables(b) |
|
$ |
407,730 |
|
|
$ |
401,549 |
|
|
$ |
293,279 |
|
% of Originations by Bank Partners |
|
|
94 |
% |
|
|
95 |
% |
|
|
93 |
% |
Net Charge-Offs as % of Average Receivables(c) |
|
|
66 |
% |
|
|
51 |
% |
|
|
36 |
% |
Auto-Approval Rate(d) |
|
|
69 |
% |
|
|
62 |
% |
|
|
58 |
% |
Marketing Cost per Funded Loan(e) |
|
$ |
66 |
|
|
$ |
82 |
|
|
$ |
89 |
|
Marketing Cost per New Funded Loan(f) |
|
$ |
188 |
|
|
$ |
206 |
|
|
$ |
255 |
|
a. |
Total net originations include both originations by bank partners on the OppFi platform, as well as direct originations by OppFi. |
|
b. |
Receivables are defined as unpaid principal balances of both on- and off-balance sheet loans. |
|
c. |
Annualized net charge-offs as a percentage of average receivables (defined as unpaid principal of both on- and off-balance sheet loans) represents total charge offs from the period less recoveries as a percent of average receivables. Finance receivables are charged off at the earlier of the time when accounts reach 90 days past due on a recency basis, when OppFi receives notification of a customer bankruptcy or is otherwise deemed uncollectible. |
|
d. |
Auto-Approval Rate is calculated by taking the number of approved loans that are not decisioned by a loan advocate or underwriter (auto-approval) divided by the total number of loans approved. |
|
e. |
Marketing Cost per Funded Loan represents marketing cost per funded loan for new and refinanced loans. This metric is the amount of direct marketing costs incurred during a period divided by the number of loans originated during that same period. |
|
f. |
Marketing Cost per New Funded Loan represents marketing cost for new loans. This metric is the amount of direct marketing costs incurred during a period divided by the number of new loans originated during that same period. |
Share Repurchase Program Update
During the third quarter, OppFi repurchased 88,262 shares of Class A common stock for $0.3 million at an average price of $3.46 per share. During the nine months ended September 30, 2022, OppFi repurchased 703,914 shares of Class A common stock at an average price of $3.47 per share for a total of $2.4 million.
Full Year 2022 Guidance Reaffirmed
OppFi reaffirms its full-year 2022 financial guidance:
- Total revenue growth of 20% to 25% year over year;
- Operating expenses as a percentage of total revenue of 43% to 47%, excluding interest expense, add backs, and one-time items; and
- Break-even or a modest net loss, on an adjusted basis.
Conference Call
Management will host a conference call today at 5:00 p.m. ET to discuss OppFi’s financial results and business outlook. The webcast of the conference call will be made available on the Investor Relations page of the Company's website.
The conference call can also be accessed with the following dial-in information:
- Domestic: (877) 407-0789
- International: (201) 689-8562
An archived version of the webcast will be available on OppFi's website.
About OppFi
OppFi (NYSE: OPFI) is a leading financial technology platform that powers banks to help the everyday consumer gain access to credit. Through its unwavering commitment to customer service, the Company supports consumers, who are turned away by mainstream options, to build better financial health. In 2021, OppFi was recognized by the Deloitte North America Technology Fast 500 for the fourth consecutive year. OppFi maintains a 4.6/5.0 star rating on Trustpilot with more than 3,500 reviews and an A+ rating from the Better Business Bureau (BBB), making the Company one of the top consumer-rated financial platforms online. For more information, please visit oppfi.com.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. OppFi’s actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," “possible,” "continue," and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, without limitation, OppFi’s expectations with respect to its full year 2022 guidance, the future performance of OppFi’s platform and expectations for OppFi’s growth and future financial performance. These forward-looking statements are based on OppFi’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside OppFi’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: the impact of inflation on OppFi’s business; the impact of COVID-19 on OppFi’s business; the impact of stimulus or other government programs; whether OppFi will be successful in obtaining declaratory relief against the Commissioner of the Department of Financial Protection and Innovation for the State of California; whether OppFi will be subject to AB 539; whether OppFi’s bank partners will continue to lend in California and whether OppFi’s financing sources will continue to finance the purchase of participation rights in loans originated by OppFi’s bank partners in California; the risk that the business combination disrupts current plans and operations; the ability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, competition, the ability of OppFi to grow and manage growth profitably and retain its key employees; risks related to new products; concentration risk; costs related to the business combination; changes in applicable laws or regulations; the possibility that OppFi may be adversely affected by other economic, business, and/or competitive factors; risks related to management transitions; and other risks and uncertainties indicated from time to time in OppFi’s filings with the United States Securities and Exchange Commission, in particular, contained in the section or sections captioned “Risk Factors.” OppFi cautions that the foregoing list of factors is not exclusive, and readers should not place undue reliance upon any forward-looking statements, which speak only as of the date made. OppFi does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.
Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures that are unaudited and do not conform to GAAP, such as Adjusted EBT, Adjusted Net Income, Adjusted EBITDA and Adjusted EPS. Adjusted EBT is defined as Net Income, plus (1) amortization of debt transaction costs and (2) other addbacks and one-time expenses, including one-time implementation fees, stock compensation expenses, IPO readiness costs, management fees, and recruiting fees, severance and relocation. Adjusted Net Income is defined as Net Income, plus (1) amortization of debt transaction costs and (2) other addbacks and one-time expenses, including one-time implementation fees, stock compensation expenses, IPO readiness costs, management fees, and recruiting fees, severance and relocation adjusted for taxes assuming a tax rate of 23.99% for the three months ended September 30, 2021 and a 24.14% tax rate for the three months ended September 30, 2022 and adjusted for taxes assuming a tax rate of 24.68% for the nine months ended September 30, 2021 and a 24.09% tax rate for the nine months ended September 30, 2022, reflecting the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes, in order to allow for a comparison with other publicly traded companies. Adjusted EBITDA is defined as Adjusted Net Income, plus (1) a tax rate of 23.99% for the three months ended September 30, 2021 and a 24.14% tax rate for the three months ended September 30, 2022 and adjusted for taxes assuming a tax rate of 24.68% for the nine months ended September 30, 2021 and a 24.09% tax rate for the nine months ended September 30, 2022, reflecting the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes, in order to allow for a comparison with other publicly traded companies, (2) depreciation and amortization, (3) interest expense and (4) business (non-income) taxes. Adjusted EPS is defined as adjusted net income divided by weighted average diluted shares outstanding, which represent shares of both classes of common stock outstanding, excluding 25,500,000 shares related to earnout obligations and including the impact of unvested restricted stock units. These non-GAAP financial measures have not been prepared in accordance with accounting principles generally accepted in the United States and may be different from non-GAAP financial measures used by other companies. OppFi believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. These non-GAAP measures with comparable names should not be considered in isolation from, or as an alternative to, financial measures determined in accordance with GAAP. A reconciliation for OppFi's non-GAAP financial measures to the most directly comparable GAAP financial measures is in the table below.
Third Quarter Results of Operations
Consolidated Statements of Operations
Comparison of the three months ended September 30, 2022 and 2021
The following table presents consolidated results of operations for the three months ended September 30, 2022 and 2021 (in thousands, except number of shares and per share data).
|
|
Three Months Ended
|
|
Change |
|||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
$ |
|
% |
|||
Interest and loan related income |
|
$ |
123,605 |
|
|
$ |
91,448 |
|
|
$ |
32,157 |
|
|
35.2 |
% |
Other income |
|
|
639 |
|
|
|
529 |
|
|
|
110 |
|
|
20.8 |
% |
Total revenue |
|
|
124,244 |
|
|
|
91,977 |
|
|
|
32,267 |
|
|
35.1 |
% |
Provision for credit losses on finance receivables |
|
|
(1,017 |
) |
|
|
(143 |
) |
|
|
(874 |
) |
|
611.2 |
% |
Change in fair value of finance receivables |
|
|
(70,601 |
) |
|
|
(18,940 |
) |
|
|
(51,661 |
) |
|
272.8 |
% |
Net revenue |
|
|
52,626 |
|
|
|
72,894 |
|
|
|
(20,268 |
) |
|
(27.8 |
)% |
Expenses: |
|
|
|
|
|
|
|
|
|||||||
Sales and marketing |
|
|
11,674 |
|
|
|
15,633 |
|
|
|
(3,959 |
) |
|
(25.3 |
)% |
Customer operations |
|
|
10,591 |
|
|
|
10,550 |
|
|
|
41 |
|
|
0.4 |
% |
Technology, products, and analytics |
|
|
8,325 |
|
|
|
7,329 |
|
|
|
996 |
|
|
13.6 |
% |
General, administrative, and other |
|
|
13,909 |
|
|
|
21,456 |
|
|
|
(7,547 |
) |
|
(35.2 |
)% |
Total expenses before interest expense |
|
|
44,499 |
|
|
|
54,968 |
|
|
|
(10,469 |
) |
|
(19.0 |
)% |
Interest expense |
|
|
9,096 |
|
|
|
6,414 |
|
|
|
2,682 |
|
|
41.8 |
% |
Total expenses |
|
|
53,595 |
|
|
|
61,382 |
|
|
|
(7,787 |
) |
|
(12.7 |
)% |
(Loss) income from operations |
|
|
(969 |
) |
|
|
11,512 |
|
|
|
(12,481 |
) |
|
(108.4 |
)% |
Gain on forgiveness of PPP loan |
|
|
— |
|
|
|
6,444 |
|
|
|
(6,444 |
) |
|
— |
% |
Change in fair value of warrant liability |
|
|
1,323 |
|
|
|
13,139 |
|
|
|
(11,816 |
) |
|
(89.9 |
)% |
Income before income taxes |
|
|
354 |
|
|
|
31,095 |
|
|
|
(30,741 |
) |
|
(98.9 |
)% |
Provision for income taxes |
|
|
1,015 |
|
|
|
703 |
|
|
|
312 |
|
|
44.4 |
% |
Net (loss) income |
|
|
(661 |
) |
|
|
30,392 |
|
|
|
(31,053 |
) |
|
(102.2 |
)% |
Less: net (loss) income attributable to noncontrolling interest |
|
|
(90 |
) |
|
|
16,267 |
|
|
|
(16,357 |
) |
|
(100.6 |
)% |
Net (loss) income attributable to OppFi Inc. |
|
$ |
(571 |
) |
|
$ |
14,125 |
|
|
$ |
(14,696 |
) |
|
(104.0 |
)% |
|
|
|
|
|
|
|
|
|
|||||||
(Loss) earnings per share attributable to OppFi Inc.: |
|
|
|
|
|
|
|
|
|||||||
(Loss) earnings per common share: |
|
|
|
|
|
|
|
|
|||||||
Basic |
|
$ |
(0.04 |
) |
|
$ |
1.06 |
|
|
|
|
|
|||
Diluted |
|
$ |
(0.04 |
) |
|
$ |
0.29 |
|
|
|
|
|
|||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|||||||
Basic |
|
|
13,972,971 |
|
|
|
13,363,996 |
|
|
|
|
|
|||
Diluted |
|
|
13,972,971 |
|
|
|
84,464,783 |
|
|
|
|
|
|||
Comparison of the nine months ended September 30, 2022 and 2021
The following table presents consolidated results of operations for the nine months ended September 30, 2022 and 2021 (in thousands, except number of shares and per share data).
|
|
Nine Months Ended
|
|
Change |
|||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
$ |
|
% |
|||
Interest and loan related income |
|
$ |
331,814 |
|
|
$ |
253,581 |
|
|
$ |
78,233 |
|
|
30.9 |
% |
Other income |
|
|
1,015 |
|
|
|
1,029 |
|
|
|
(14 |
) |
|
(1.4 |
)% |
Total revenue |
|
|
332,829 |
|
|
|
254,610 |
|
|
|
78,219 |
|
|
30.7 |
% |
Provision for credit losses on finance receivables |
|
|
(2,043 |
) |
|
|
(181 |
) |
|
|
(1,862 |
) |
|
1028.7 |
% |
Change in fair value of finance receivables |
|
|
(162,280 |
) |
|
|
(52,635 |
) |
|
|
(109,645 |
) |
|
208.3 |
% |
Net revenue |
|
|
168,506 |
|
|
|
201,794 |
|
|
|
(33,288 |
) |
|
(16.5 |
)% |
Expenses: |
|
|
|
|
|
|
|
|
|||||||
Sales and marketing |
|
|
43,067 |
|
|
|
35,114 |
|
|
|
7,953 |
|
|
22.6 |
% |
Customer operations |
|
|
31,933 |
|
|
|
30,036 |
|
|
|
1,897 |
|
|
6.3 |
% |
Technology, products, and analytics |
|
|
24,848 |
|
|
|
19,669 |
|
|
|
5,179 |
|
|
26.3 |
% |
General, administrative, and other |
|
|
40,965 |
|
|
|
45,686 |
|
|
|
(4,721 |
) |
|
(10.3 |
)% |
Total expenses before interest expense |
|
|
140,813 |
|
|
|
130,505 |
|
|
|
10,308 |
|
|
7.9 |
% |
Interest expense |
|
|
24,421 |
|
|
|
17,406 |
|
|
|
7,015 |
|
|
40.3 |
% |
Total expenses |
|
|
165,234 |
|
|
|
147,911 |
|
|
|
17,323 |
|
|
11.7 |
% |
Income from operations |
|
|
3,272 |
|
|
|
53,883 |
|
|
|
(50,611 |
) |
|
(93.9 |
)% |
Gain on forgiveness of PPP loan |
|
|
— |
|
|
|
6,444 |
|
|
|
(6,444 |
) |
|
— |
% |
Change in fair value of warrant liability |
|
|
7,024 |
|
|
|
13,139 |
|
|
|
(6,115 |
) |
|
(46.5 |
)% |
Income before income taxes |
|
|
10,296 |
|
|
|
73,466 |
|
|
|
(63,170 |
) |
|
(86.0 |
)% |
Provision for income taxes |
|
|
1,757 |
|
|
|
703 |
|
|
|
1,054 |
|
|
149.9 |
% |
Net income |
|
|
8,539 |
|
|
|
72,763 |
|
|
|
(64,224 |
) |
|
(88.3 |
)% |
Less: net income attributable to noncontrolling interest |
|
|
4,576 |
|
|
|
58,638 |
|
|
|
(54,062 |
) |
|
(92.2 |
)% |
Net income attributable to OppFi Inc. |
|
$ |
3,963 |
|
|
$ |
14,125 |
|
|
$ |
(10,162 |
) |
|
(71.9 |
)% |
|
|
|
|
|
|
|
|
|
|||||||
Earnings per share attributable to OppFi Inc.: |
|
|
|
|
|
|
|
|
|||||||
Earnings per common share: |
|
|
|
|
|
|
|
|
|||||||
Basic |
|
$ |
0.29 |
|
|
$ |
1.08 |
|
|
|
|
|
|||
Diluted |
|
$ |
0.09 |
|
|
$ |
0.29 |
|
|
|
|
|
|||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|||||||
Basic |
|
|
13,694,733 |
|
|
|
13,107,874 |
|
|
|
|
|
|||
Diluted |
|
|
84,277,277 |
|
|
|
84,464,783 |
|
|
|
|
|
|||
Condensed Balance Sheets
Comparison of the periods ended September 30, 2022 and December 31, 2021
(in thousands) Unaudited |
|
September 30,
|
|
December 31,
|
||
Assets |
|
|
|
|
||
Cash and restricted cash |
|
$ |
50,469 |
|
$ |
62,362 |
Finance receivables at fair value |
|
|
458,065 |
|
|
383,890 |
Finance receivables at amortized cost, net |
|
|
3,858 |
|
|
4,220 |
Other assets |
|
|
67,578 |
|
|
51,634 |
Total assets |
|
$ |
579,970 |
|
$ |
502,106 |
Liabilities and stockholders’ equity |
|
|
|
|
||
Current liabilities |
|
$ |
67,668 |
|
$ |
58,967 |
Total debt |
|
|
342,636 |
|
|
274,021 |
Warrant liabilities |
|
|
4,216 |
|
|
11,240 |
Total liabilities |
|
|
414,520 |
|
|
344,228 |
Total stockholders’ equity |
|
|
165,450 |
|
|
157,878 |
Total liabilities and stockholders' equity |
|
$ |
579,970 |
|
$ |
502,106 |
Total cash and restricted cash decreased by $11.9 million as of September 30, 2022 compared to December 31, 2021, driven by an increase in originated loans relative to the timing of received payments. Finance receivables as of September 30, 2022 increased compared to December 31, 2021 due to high demand and origination volume for the nine months ended September 30, 2022. Other assets as of September 30, 2022 increased by $15.9 million compared to December 31, 2021, driven by the addition of an operating lease right of use asset of $14.4 million related to the Company’s headquarters due to the adoption of a new accounting standard and an increase in tax receivable of $1.2 million.
Current liabilities increased by $8.7 million as of September 30, 2022 compared to December 31, 2021, driven by the addition of an operating lease liability of $16.9 million and an increase in accounts payable of $0.6 million. These increases were partially offset by a decrease of accrued expenses of $9.4 million as of September 30, 2022 compared to December 31, 2021. Total debt increased by $68.6 million as of September 30, 2022 compared to December 31, 2021, driven by an increase in utilization of revolving lines of credit of $86.8 million, which was partially offset by lower secured borrowing payables of $20.7 million. Total equity increased by $7.6 million as of September 30, 2022 compared to December 31, 2021, driven by net income and stock-based compensation, partially offset by treasury stock as a result of the share repurchase program.
Financial Capacity and Capital Resources
As of September 30, 2022, OppFi had $14.0 million in unrestricted cash, a decrease of $11.1 million from December 31, 2021. As of September 30, 2022, the Company had an additional $168.0 million of unused debt capacity under its financing facilities for future availability, representing a 33 % overall undrawn capacity, an increase from $158.1 million as of December 31, 2021. The increase in undrawn debt was due to an amendment to one of the Company’s revolving lines of credit, which increased the size of the facility from $75 million to $200 million. Including total financing commitments of $507.5 million, and cash on the balance sheet of $50.5 million, OppFi had $558.0 million in funding capacity as of September 30, 2022.
Reconciliation of Non-GAAP Financial Measures
Comparison of the three and nine months ended September 30, 2022 and 2021
|
|
Three Months Ended September 30, |
|
Variance |
|||||||
(in thousands, except share and per share data) Unaudited |
|
|
2022 |
|
|
|
2021 |
|
|
% |
|
Net (loss) income |
|
$ |
(661 |
) |
|
$ |
30,392 |
|
|
(102.2 |
)% |
Provision for income taxes |
|
|
1,015 |
|
|
|
703 |
|
|
44.4 |
% |
Debt issuance cost amortization |
|
|
582 |
|
|
|
572 |
|
|
1.7 |
% |
Other addbacks and one-time expenses, net(a) |
|
|
76 |
|
|
|
(8,825 |
) |
|
(100.9 |
)% |
Adjusted EBT1 |
|
|
1,012 |
|
|
|
22,842 |
|
|
(95.6 |
)% |
Less: pro forma taxes(b) |
|
|
(244 |
) |
|
|
(5,480 |
) |
|
(95.5 |
)% |
Adjusted net income1 |
|
|
768 |
|
|
|
17,362 |
|
|
(95.6 |
)% |
Pro forma taxes(b) |
|
|
244 |
|
|
|
5,480 |
|
|
(95.5 |
)% |
Depreciation and amortization |
|
|
3,452 |
|
|
|
2,712 |
|
|
27.3 |
% |
Interest expense |
|
|
8,513 |
|
|
|
5,841 |
|
|
45.7 |
% |
Business (non-income) taxes |
|
|
238 |
|
|
|
383 |
|
|
(37.9 |
)% |
Adjusted EBITDA1 |
|
$ |
13,215 |
|
|
$ |
31,778 |
|
|
(58.4 |
)% |
|
|
|
|
|
|
|
|||||
Adjusted EPS1: |
|
$ |
0.01 |
|
|
$ |
0.21 |
|
|
|
|
Weighted average diluted shares outstanding |
|
|
84,080,808 |
|
|
|
84,464,783 |
|
|
|
|
|
|
|
|
|
|
|
|||||
(a) For the three months ended September 30, 2022, other addbacks and one-time expenses of $0.1 million included a $(1.3) million addback due to the change in fair value of the warrant liabilities, a $(0.1) million recruiting related addback, a $0.8 million expense related to severance and retention bonuses, and $0.8 million in expenses related to stock compensation. For the three months ended September 30, 2021, other addbacks and one-time expenses of $(8.8) million included a $(13.1) million addback due to the change in fair value of the warrant liabilities, a $(6.4) million addback due to the gain on forgiveness of the PPP Loan, $6.6 million in public company readiness costs prior to the Business Combination, $1.0 million in accounting and legal costs related to the Business Combination, a $0.9 million expense related to warrant valuation, a $0.2 million expense related to severance, a $0.1 million expense related to board fees, a $1.0 million recruiting and salary expense, and a $0.9 million expense related to stock compensation. |
|||||||||||
(b) Assumes a tax rate of 23.99% for the three months ended September 30, 2021 and a 24.14% tax rate for the three months ended September 30, 2022, reflecting the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes. |
|||||||||||
|
|
Nine Months Ended September 30, |
|
Variance |
|||||||
(in thousands, except share and per share data) Unaudited |
|
|
2022 |
|
|
|
2021 |
|
|
% |
|
Net income |
|
$ |
8,539 |
|
|
$ |
72,763 |
|
|
(88.3 |
)% |
Provision for income taxes |
|
|
1,757 |
|
|
|
703 |
|
|
149.9 |
% |
Debt issuance cost amortization |
|
|
1,626 |
|
|
|
1,735 |
|
|
(6.3 |
)% |
Other addbacks and one-time expenses, net(a) |
|
|
(1,656 |
) |
|
|
(2,923 |
) |
|
(43.3 |
)% |
Adjusted EBT1 |
|
|
10,266 |
|
|
|
72,278 |
|
|
(85.8 |
)% |
Less: pro forma taxes(b) |
|
|
(2,473 |
) |
|
|
(17,839 |
) |
|
(86.1 |
)% |
Adjusted net income1 |
|
|
7,793 |
|
|
|
54,439 |
|
|
(85.7 |
)% |
Pro forma taxes(b) |
|
|
2,473 |
|
|
|
17,839 |
|
|
(86.1 |
)% |
Depreciation and amortization |
|
|
10,056 |
|
|
|
7,289 |
|
|
38.0 |
% |
Interest expense |
|
|
22,795 |
|
|
|
15,671 |
|
|
45.5 |
% |
Business (non-income) taxes |
|
|
826 |
|
|
|
1,175 |
|
|
(29.7 |
)% |
Adjusted EBITDA1 |
|
$ |
43,943 |
|
|
$ |
96,413 |
|
|
(54.4 |
)% |
|
|
|
|
|
|
|
|||||
Adjusted EPS1: |
|
$ |
0.09 |
|
|
$ |
0.64 |
|
|
|
|
Weighted average diluted shares outstanding |
|
|
84,277,277 |
|
|
|
84,464,783 |
|
|
|
|
|
|||||||||||
(a) For the nine months ended September 30, 2022, other addbacks and one-time expenses of $(1.7) million included a $(7.0) million addback due to the change in fair value of the warrant liabilities, $2.9 million in expenses related to severance and retention bonuses, $2.4 million in expenses related to stock compensation, and $0.1 million in one-time legal expenses. For the nine months ended September 30, 2021, other addbacks and one-time expenses of $(2.9) million included a $(13.1) million addback due to the change in fair value of the warrant liabilities, a $(6.4) million addback due to the gain on forgiveness of the PPP Loan, $6.6 million in public company readiness costs prior to the Business Combination, $2.6 million in expenses related to one-time legal, accounting, and other costs related to the Business Combination, $4.2 million in expenses related to warrant valuation, $0.6 million in expenses related to severance, $0.4 million in management and board fees, a $1.0 million recruiting and salary expense, and a $1.2 million expense related to stock compensation. |
|||||||||||
(b) Assumes a tax rate of 24.68% for the nine months ended September 30, 2021 and a 24.09% tax rate for the nine months ended September 30, 2022, reflecting the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes. |
|||||||||||
Adjusted Earnings Per Share
|
Three Months Ended September 30, |
||||
(unaudited) |
2022 |
|
|
2021 |
|
Weighted average Class A common stock outstanding |
13,972,971 |
|
|
13,363,996 |
|
Weighted average Class V voting stock outstanding |
95,397,996 |
|
|
96,600,787 |
|
Elimination of earnouts at period end |
(25,500,000 |
) |
|
(25,500,000 |
) |
Dilutive impact of restricted stock units |
192,127 |
|
|
— |
|
Dilutive impact of performance stock units |
17,714 |
|
|
— |
|
Weighted average diluted shares outstanding |
84,080,808 |
|
|
84,464,783 |
|
|
Three Months Ended September 30, |
||||
(unaudited) |
|
2022 |
|
|
2021 |
Adjusted net income (in thousands)1 |
$ |
768 |
|
$ |
17,362 |
Weighted average diluted shares outstanding |
|
84,080,808 |
|
|
84,464,783 |
Adjusted EPS:1 |
$ |
0.01 |
|
$ |
0.21 |
|
Nine Months Ended September 30, |
||||
(unaudited) |
2022 |
|
|
2021 |
|
Weighted average Class A common stock outstanding |
13,694,733 |
|
|
13,107,874 |
|
Weighted average Class V voting stock outstanding |
95,946,836 |
|
|
96,856,909 |
|
Elimination of earnouts at period end |
(25,500,000 |
) |
|
(25,500,000 |
) |
Dilutive impact of restricted stock units |
123,722 |
|
|
— |
|
Dilutive impact of performance stock units |
11,986 |
|
|
— |
|
Weighted average diluted shares outstanding |
84,277,277 |
|
|
84,464,783 |
|
|
Nine Months Ended September 30, |
||||
(unaudited) |
|
2022 |
|
|
2021 |
Adjusted net income (in thousands)1 |
$ |
7,793 |
|
$ |
54,439 |
Weighted average diluted shares outstanding |
|
84,277,277 |
|
|
84,464,783 |
Adjusted EPS:1 |
$ |
0.09 |
|
$ |
0.64 |
(1) Non-GAAP Financial Measures: Adjusted Net Income, Adjusted EBT, Adjusted EPS and Adjusted EBITDA are financial measures that have not been prepared in accordance with GAAP. See the “Note Regarding Non-GAAP Financial Measures” for a detailed description and reconciliation of such Non-GAAP financial measures to their most directly comparable GAAP financial measures. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20221109005905/en/
Contacts
Investor Relations: investors@oppfi.com
Media Relations: media@oppfi.com
