Open Lending Corporation (NASDAQ:LPRO) Q4 2021 Earnings Conference Call February 24, 2022 5:00 PM ET Company Participants John Flynn - Chairman & Chief Executive Officer Ross Jessup - President & Chief Operating Officer Chuck Jehl - Chief Financial Officer Conference Call Participants David Scharf - JMP Securities Peter Heckmann - D.A. Davidson Vincent Caintic - Stephens Joseph Vafi - Canaccord Genuity Mike Grondahl - Northland Securities John Davis - Raymond James James Faucette - Morgan Stanley Operator G ...

Earnings Supplement Q4 2021 Q4 2021 Financial Highlights Q4 2021 Total Certs 42,639 26,822 Revenue $51.6 million $39.6 million Adj. EBITDA $36.6 million $24.8 million Q4 2020 Adj. Operating Cash Flow1 $37.5 million $8.3 million (1) Defined as Adj. EBITDA, minus CAPEX, plus or minus change in contract assets 2 2021 Financial Highlights FY 2021 Total Certs 171,697 94,226 Revenue $215.7 million $108.9 million Adj. EBITDA $155.0 million $69.5 million FY 2020 Adj. Operating Cash Flow1 $129.2 million $41.9 millio ...

PART I. Financial Information Presents the company's financial performance, condition, cash flows, management's analysis, and risk disclosures [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20%28Unaudited%29) Presents unaudited condensed consolidated financial statements, highlighting revenue growth, net income, and increased equity [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Details the balance sheet, showing stable assets, reduced liabilities, and increased stockholders' equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$293,243** | **$294,009** | | Cash and cash equivalents | $90,864 | $101,513 | | Total contract assets | $114,262 | $89,342 | | **Total Liabilities** | **$165,653** | **$267,387** | | Long-term debt, net | $143,828 | $152,859 | | Tax receivable agreement liability | $— | $92,369 | | **Total Stockholders' Equity** | **$127,590** | **$26,622** | [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20%28Loss%29) Presents the income statement, showing doubled revenue and a significant turnaround from net loss to net income Statement of Operations Summary (in thousands, except per share data) | Metric | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | **Total Revenue** | **$164,025** | **$69,259** | | Gross Profit | $150,143 | $62,441 | | Operating Income | $115,062 | $32,431 | | Gain on extinguishment of TRA | $55,422 | $— | | Change in fair value of contingent consideration | $— | $(131,932) | | **Net Income (Loss)** | **$118,242** | **$(112,766)** | | Diluted EPS | $0.94 | $(1.56) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Details cash flows, showing increased operating cash and significant cash used in financing for debt repayment Cash Flow Summary (in thousands) | Cash Flow Activity | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $68,423 | $16,375 | | Net cash used in investing activities | $(1,785) | $(1,097) | | Net cash (used in) provided by financing activities | $(77,026) | $92,590 | | **Net change in cash** | **$(10,388)** | **$107,868** | | Cash at end of period | $93,760 | $117,766 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides key notes on corporate actions, accounting estimates, revenue concentration, debt refinancing, and TRA termination - The company's business relationships with its three insurance partners generated approximately **65% of total revenue** for the nine months ended September 30, 2021, indicating a significant concentration of revenue[37](index=37&type=chunk) - In March 2021, the company retired its 'Term Loan due 2027' and entered into a new credit agreement for a 'Term Loan due 2026' and a revolving facility, resulting in a **non-cash loss of $8.8 million** from debt extinguishment[57](index=57&type=chunk)[58](index=58&type=chunk) - On April 12, 2021, the company exercised its right to terminate the Tax Receivable Agreement (TRA) with a single payment of **$36.9 million**, resulting in a recognized **gain of $55.4 million**[114](index=114&type=chunk)[115](index=115&type=chunk) Contract Asset Changes (Profit Share Component, in thousands) | Description | Nine Months Ended Sep 30, 2021 | | :--- | :--- | | Beginning Balance (Profit Share) | $83,177 | | Increase from new business | $77,605 | | Positive adjustment from prior periods | $24,414 | | Payments received | $(78,541) | | **Ending Balance (Profit Share)** | **$106,655** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition and operations, highlighting strong revenue growth, increased loan volume, and strategic actions Key Financial and Operational Metrics (in millions, except as noted) | Metric | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | % Change | | :--- | :--- | :--- | :--- | | Certified Loans | 129,058 | 67,404 | 91% | | Total Revenue | $164.0M | $69.3M | 137% | | Operating Income | $115.1M | $32.4M | 255% | | Net Income (Loss) | $118.2M | $(112.8)M | (205)% | | Adjusted EBITDA | $118.4M | $44.7M | 165% | - The company signed a producer agreement with a third insurance carrier partner, American National Group, Inc., to provide additional credit default insurance policies for its LPP platform[150](index=150&type=chunk) - Profit share revenue for the nine months ended Sep 30, 2021, included a **$24.4 million positive adjustment** related to historical business, reflecting continued improvement in portfolio performance compared to initial pandemic-era expectations[176](index=176&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Discloses market risks including economic conditions, competition, interest rate fluctuations, and concentration risk - The company identifies significant concentration risk, as a large portion of certified loan volume is expected from OEM Captives and a significant portion of profit share revenue relies on its largest insurance partner[206](index=206&type=chunk) - The company is exposed to interest rate risk through its variable-rate debt under the New Credit Facility, which is tied to LIBOR or an Alternate Base Rate plus a spread[207](index=207&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirms effective disclosure controls and procedures, noting changes from new ERP system implementation - Management concluded that disclosure controls and procedures were effective at a reasonable assurance level as of the end of the period[209](index=209&type=chunk) - The company implemented a new Enterprise Resource Planning (ERP) system during Q3 2021, leading to changes in processes and the design of certain internal controls[210](index=210&type=chunk) PART II. Other Information Presents other required information including legal proceedings, updated risk factors, and equity security sales [Item 1. Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) Reports no material legal proceedings as of the filing date - The company reports no material legal proceedings as of the date of the Quarterly Report[212](index=212&type=chunk) [Item 1A. Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) Updates risk factors, including new credit agreement covenants, LIBOR phase-out, and semiconductor chip shortage - The New Credit Agreement contains covenants that could limit the company's ability to incur debt, engage in M&A, or pay dividends, with breaches potentially leading to default and acceleration of the loan[214](index=214&type=chunk)[215](index=215&type=chunk)[217](index=217&type=chunk) - The company acknowledges risk related to the planned phase-out of LIBOR, which is a reference rate for its credit facility, and the transition to alternative rates like SOFR[218](index=218&type=chunk) - The global semiconductor chip shortage is identified as a significant risk, as it has reduced new vehicle production, lowered inventory, and pushed prices higher, thereby diminishing demand for automotive loans and the LPP platform[220](index=220&type=chunk)[221](index=221&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Reports no unregistered sales of equity securities or common stock repurchases during the period - No shares of common stock were repurchased by the company during the three-month period from July 1, 2021, to September 30, 2021[222](index=222&type=chunk)[223](index=223&type=chunk)

Earnings Supplement Q3 2021 Q3 Financial Highlights Q3 2021 Q3 2020 Total Certs 49,332 20,696 Revenue $58.9 million $29.8 million Adj. EBITDA $42.1 million $19.8 million Adj. Operating Cash Flow1$ 38.8 million $8.8 million (1) Defined as Adj. EBITDA, minus CAPEX, plus or minus change in contract assets 2 Well Defined Growth Plan Drive Loan Volume through Further Wallet-Share Increase and Customer Penetration Expansion of Lender Base 1 Expand Core Business Increase OEM Captive Penetration by Addressing Broad ...

Open Lending Corporation (NASDAQ:LPRO) Q3 2021 Results Conference Call November 9, 2021 5:00 PM ET Company Participants John Flynn - Chairman, Chief Executive Officer Ross Jessup - President, Chief Operating Officer Chuck Jehl - Chief Financial Officer Conference Call Participants Vincent Caintic - Stephens Joseph Vafi - Canaccord Peter Heckmann - D.A. Davidson James Faucette - Morgan Stanley Operator Good afternoon, and welcome to Open Lending's Third Quarter 2021 Earnings Conference Call. During the prese ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Commission File Number: 001-39326 OPEN LENDING CORPORATION (Exact Name of Registrant as Specified in its Charter) Delaware EIN 8 ...

Open Lending Corporation (NASDAQ:LPRO) Q2 2021 Earnings Conference Call August 10, 2021 5:00 PM ET Company Representatives John Flynn - Chairman, Chief Executive Officer Ross Jessup - President, Chief Operating Officer Chuck Jehl - Chief Financial Officer Conference Call Participants Joseph Vafi - Canaccord Vincent Caintic - Stephens James Faucette - Morgan Stanley John Hecht - Jefferies Sameer Kalucha - Deutsche Bank Adib Choudhury - William Blair Operator Good afternoon. Welcome to Open Lending's Second Q ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Commission File Number: 001-39326 OPEN LENDING CORPORATION (Exact Name of Registrant as Specified in its Charter) Delaware EIN ...

Open Lending Corporation (NASDAQ:LPRO) Q1 2021 Earnings Conference Call May 11, 2021 2:30 PM ET Company Participants John Flynn - Chairman and Chief Executive Officer Ross Jessup - President and Chief Operating Officer Chuck Jehl - Executive Vice President, Chief Financial Officer and Treasurer Conference Call Participants Peter Heckmann - D.A. Davidson David Scharf - JMP Securities Joseph Vafi - Canaccord John Davis - Raymond James Vincent Caintic - Stephens James Faucette - Morgan Stanley Sameer Kalucha - ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to _______________ Commission file number 001-39326 OPEN LENDING CORPORATION (Exact name of registrant as specified in its charter) Delaware 84-5031428 ...