FlexShopper(FPAY) - 2024 Q1 - Quarterly Results

Financial Results Overview Q1 2024 Performance Highlights FlexShopper's Q1 2024 saw a 10.1% revenue increase, 30.9% gross profit rise, and Adjusted EBITDA up $1.2 million, with core earnings growing 64.7% Q1 2024 vs. Q1 2023 Key Metrics | Metric | Q1 2024 (USD) | Q1 2023 (USD) | Change (USD) | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Fundings | $26.0 million | $26.3 million | $(0.3) million | -1.1% | | Total Revenues | $33.9 million | $30.8 million | +$3.1 million | +10.1% | | Gross Profit | $17.8 million | $13.6 million | +$4.2 million | +30.9% | | Operating Income | $5.0 million | $4.2 million | +$0.8 million | +19.0% | | Adjusted EBITDA | $7.6 million | $6.4 million | +$1.2 million | +18.4% | | Core Earnings | $354 thousand | $215 thousand | +$139 thousand | +64.7% | | Net Loss Attributable to Common Stockholders | $(1.3) million | $(1.2) million | $(0.1) million | - | | Diluted Loss Per Share | $(0.06) | $(0.06) | $0.00 | 0.0% | Consolidated Financial Statements Condensed Consolidated Statements of Operations Q1 2024 total revenues increased 10.1% to $33.9 million, with operating income rising 19.0% to $5.0 million, resulting in a stable net loss Q1 2024 Statement of Operations Summary (vs. Q1 2023) | Line Item | Q1 2024 (USD) | Q1 2023 (USD) | | :--- | :--- | :--- | | Total Revenues | 33,944,873 | 30,785,775 | | Operating Income | 5,043,982 | 4,152,573 | | Interest Expense | 5,315,094 | 4,531,327 | | Net Loss | (214,179) | (230,215) | | Net Loss Attributable to Common Shareholders | (1,283,635) | (1,202,448) | | Basic and Diluted Loss per Common Share | (0.06) | (0.06) | Condensed Consolidated Balance Sheets As of March 31, 2024, total assets increased to $162.6 million, liabilities to $133.4 million, with stockholders' equity remaining stable Balance Sheet Summary (as of March 31, 2024 vs. Dec 31, 2023) | Account | March 31, 2024 (USD) | December 31, 2023 (USD) | | :--- | :--- | :--- | | Total Current Assets | 123,571,777 | 117,434,627 | | Total Assets | 162,613,750 | 156,490,377 | | Total Current Liabilities | 9,021,198 | 12,134,118 | | Total Liabilities | 133,386,129 | 127,259,604 | | Total Stockholders' Equity | 29,227,621 | 29,230,773 | Condensed Consolidated Statements of Cash Flows Q1 2024 operating activities used $(5.6) million cash, a reversal from prior year, with financing providing $9.1 million, leading to a $1.2 million net cash increase Q1 2024 Cash Flow Summary (vs. Q1 2023) | Cash Flow Activity | Q1 2024 (USD) | Q1 2023 (USD) | | :--- | :--- | :--- | | Net Cash (Used in)/Provided by Operating Activities | (5,643,178) | 5,599,339 | | Net Cash Used in Investing Activities | (2,279,532) | (1,922,882) | | Net Cash Provided by Financing Activities | 9,103,330 | 19,721 | | Increase in Cash | 1,180,620 | 3,696,178 | | Cash, End of Period | 5,593,750 | 9,869,527 | Non-GAAP Financial Measures Adjusted EBITDA Reconciliation Q1 2024 Adjusted EBITDA, a non-GAAP measure, increased 18.4% to $7.6 million, reflecting adjustments to net loss for non-operating items - Adjusted EBITDA is defined as net income before interest, stock-based compensation, taxes, depreciation (other than leased merchandise), amortization, and one-time or non-recurring items[14] Adjusted EBITDA Reconciliation (Q1 2024 vs. Q1 2023) | Line Item | Q1 2024 (USD) | Q1 2023 (USD) | | :--- | :--- | :--- | | Net Loss | (214,179) | (230,215) | | Adjustments (Taxes, Interest, D&A, etc.) | 7,790,773 | 6,629,693 | | Adjusted EBITDA | 7,576,594 | 6,399,478 | Core Earnings Reconciliation Q1 2024 core earnings, a non-GAAP metric, grew 64.8% to $354,299, adjusting GAAP net loss for non-recurring items - Core earnings represents GAAP net loss adjusted for special items that are considered extraordinary, unusual, or non-recurring, or do not reflect core business activities[15] Core Earnings Reconciliation (Q1 2024 vs. Q1 2023) | Line Item | Q1 2024 (USD) | Q1 2023 (USD) | | :--- | :--- | :--- | | GAAP Net Loss | (214,179) | (230,215) | | Acquired intangible assets amortization | 442,334 | 442,334 | | Non recurring employment expenses | 126,144 | 2,826 | | Core Earnings | 354,299 | 214,945 | Company Information and Disclosures About FlexShopper FlexShopper is a fintech firm providing lease-to-own solutions for durable goods to underserved consumers via its e-commerce marketplace and technology platforms - FlexShopper's business model focuses on two main areas: a direct-to-consumer LTO e-commerce marketplace and providing its LTO/loan technology platforms to other retail partners[19] Forward-Looking Statements The report includes a safe harbor provision, cautioning that forward-looking statements are subject to inherent risks and uncertainties that could alter actual results - The document contains forward-looking statements concerning business strategy, lease originations, and operating results, which are subject to risks outlined in the company's SEC filings (Form 10-K and 10-Q)[20]