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FlexShopper, Inc. (FPAY)

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Previous Close2.1700
Bid2.1200 x 1000
Ask2.1400 x 900
Day's Range2.1000 - 2.1600
52 Week Range1.0000 - 3.9500
Avg. Volume202,812
Market Cap44.889M
Beta (5Y Monthly)1.29
PE Ratio (TTM)N/A
EPS (TTM)-0.1700
Earnings DateMar 09, 2021
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est4.50
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    FlexShopper, Inc. to Host Earnings Call

    NEW YORK, NY / ACCESSWIRE / March 9, 2021 / FlexShopper, Inc. (NASDAQ:FPAY) will be discussing their earnings results in their 2020 Fourth Quarter Earnings call to be held on March 9, 2021 at 9:00 AM Eastern Time.

  • FlexShopper, Inc. Reports 2020 Fourth Quarter and Year End Financial Results

    FlexShopper, Inc. Reports 2020 Fourth Quarter and Year End Financial Results

    Q4 2020 Net Revenues Up 25.3% to $28.1 million Lease Merchandise, net, Up 37.8% at December 31, 2020 Compared With Prior Year BOCA RATON, Fla., March 08, 2021 (GLOBE NEWSWIRE) -- FlexShopper, Inc. (Nasdaq:FPAY) (“FlexShopper”), a leading national online lease-to-own (“LTO”) retailer and LTO payment solution provider, today announced its financial results for the quarter and fiscal year ended December 31, 2020, highlighted by continued growth in lease activity from repeat customers, along with new customer additions. Results for Quarter Ended December 31, 2020 vs. Quarter Ended December 31, 2019: ●Total net revenues and fees increased 25.3% to $28.1 million from $22.4 million ●Originated 71,350 gross leases, up 26.5% from 56,391; average origination value increased by 8.7% to $464 ●Gross lease originations increased $8.9 million, or 37.3%, to $33.1 million from $24.1 million ●Net loss of $(419) thousand compared with net loss of $(1.0) million ●Net loss attributable to common stockholders of $(1.0) million, or $(0.05) per diluted share, compared to net loss of $(1.6) million, or $(0.09) per diluted share ●Gross profit increased 46.7% to $11.1 million from $7.5 million ●Adjusted EBITDA1 increased to $2.6 million compared to $1.1 million Results for Twelve Months Ended December 31, 2020 vs. Twelve Months Ended December 31, 2019: ●Total net revenues and fees increased 15% to $102.1 million from $88.8 million ●Originated 188,554 gross leases, up 23.95% from 152,122; average origination value increased by 3.4% to $468 ●Gross lease originations increased $19.4 million, or 28.2%, to $88.2 million from $68.8 million ●Net loss of $(340) thousand compared with net income of $577 thousand ●Net loss attributable to common stockholders, inclusive of deemed dividend expense of $0.7 million in Q1, of $(3.5) million, or $(0.17) per diluted share, compared to $(1.9) million, or $(0.11) per diluted share in the prior year, which included no deemed dividend expense ●Gross profit increased 23.7% to $35.4 million from $28.6 million ●Adjusted EBITDA1 improved to $8.7 million from $8.4 million ●Lease merchandise, net, of $42.8 million at December 31, 2020 increased 37.8% ¹Adjusted EBITDA is a non-GAAP financial measure. Refer to the definition and reconciliation of this measure under “Non-GAAP Measures”. Fourth Quarter 2020 Highlights and Recent Developments ●Pilot program with a national retailer has been expanded from one state to four states. Following a successful introduction, the program will expand to three additional states as of March 15th. ●Credit facility maturity extended along with important modifications. The Company’s credit facility was extended until April 1, 2024 and included eligibility and covenant modifications which improve liquidity. ●Origination growth continuing into 2021. The strong origination growth experienced in the fourth quarter has continued into 2021, with originations rising 23% in January and February combined, compared with the same two-month period in 2020. ●Leases originated in the fourth quarter driving favorable results in the first months of 2021. Adjusted EBITDA for January 2021 was approximately $1.59 million. ●Repeat customer trends continue to be favorable. During 2020, the Company originated $37.7 million from existing customers, representing approximately 43% of total gross lease originations. This compared with $27.4 million repeat customer leases in 2019, or 38% of total existing gross lease originations. Rich House, CEO, stated, “We closed 2020 with excellent momentum as our originations in the fourth quarter grew 37.3%, resulting in year-end a Net Merchandise balance of $42.8 million, which was similarly up 37.8%. Our asset quality continued to be solid and with our recently extended credit facility, we believe we are well-positioned to continue our growth. Subsequent to year end, we expanded our pilot program with a national retailer and now are a payment option in four states with them. We are also continuing to focus on securing additional retail partners and are optimistic regarding the progress of those discussions.” Mr. House continued, “Against the challenging backdrop that 2020 posed for everyone, our business proved its resilience as our underwriting remained solid. Additionally, our FlexShopper platform continues to be a key differentiator for our business by providing our partners a robust direct to consumer option alongside our integrationless payment option in their stores and on their websites. We took a methodical approach during the pandemic and, after thorough data analysis, resumed our emphasis on growth. In addition to growing originations with new customers, we are also having good success driving repeat business which leads to expanding margins. Combined with our return on capital framework, we expect this strategy to drive increased value for FlexShopper.” Additionally, Adjusted EBITDA is a non-GAAP financial measure. Refer to the definition of this measure under “Non-GAAP Measures.” Conference Call DetailsDate: Tuesday, March 9, 2021Time: 9:00 a.m. Eastern Time Participant Dial-In Numbers:Domestic callers: (877) 407-3944International callers: (412) 902-0038 Access by Webcast 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://78449.themediaframe.com/dataconf/productusers/fpay/mediaframe/43735/indexl.html. An audio replay of the call will be archived on the Company’s website. FLEXSHOPPER, INC.CONSOLIDATED STATEMENTS OF OPERATIONS For the three months ended For the twelve months ended December 31, December 31, 2020 2019 2020 2019 Revenues: Lease revenues and fees, net 26,950,434 21,378,164 96,939,767 85,331,360 Lease merchandise sold 1,191,139 1,083,653 5,144,747 3,458,529 Total revenues 28,141,573 22,461,817 102,084,514 88,789,889 Costs and expenses: Cost of lease revenues, consisting of depreciation 16,326,208 14,152,683 63,308,210 57,939,899 and impairment of lease merchandise Cost of lease merchandise sold 739,281 760,792 3,424,880 2,282,036 Marketing 2,260,152 1,618,065 5,880,063 3,649,292 Salaries and benefits 3,116,073 2,484,537 10,440,693 8,469,334 Operating expenses 4,367,210 3,188,853 14,404,953 11,345,091 Total costs and expenses 26,808,924 22,204,930 97,458,799 83,685,652 Operating income 1,332,649 256,887 4,625,715 5,104,237 Interest expense including amortization of debt issuance costs 1,088,478 1,044,651 4,302,561 4,310,422 Income/(loss) before income taxes 244,171 (787,764) 323,154 793,815 Provision for income taxes 663,050 216,400 663,050 216,400 Net income/(loss) (418,879) (1,004,164) (339,896) 577,415 Deemed dividend from exchange offer of warrants - - 713,212 - Dividends on Series 2 Convertible Preferred Shares 609,771 609,717 2,438,988 2,437,884 Net income/(loss) attributable to common shareholders$(1,028,650) $(1,613,881) $(3,492,096) $(1,860,469) Basic and diluted (loss) per common share: Basic and diluted$(0.05) $(0.09) $ (0.17) $(0.11) WEIGHTED AVERAGE COMMON SHARES: Basic and diluted 21,359,912 17,704,865 20,995,349 17,672,156 FLEXSHOPPER, INC.CONSOLIDATED BALANCE SHEETS December 31, December 31, 2020 2019 ASSETS CURRENT ASSETS: Cash $8,541,232 $6,868,472 Accounts receivable, net 10,032,714 8,272,332 Prepaid expenses 869,081 672,242 Lease merchandise, net 42,822,340 31,063,104 Total current assets 62,265,367 46,876,150 PROPERTY AND EQUIPMENT, net 5,911,696 5,260,407 OTHER ASSETS, net 72,316 78,335 Total assets $68,249,379 $52,214,892 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable $7,907,619 $4,567,889 Accrued payroll and related taxes 352,102 513,267 Current portion of promissory notes to related parties, net of $8,276 at 2020 and $5,333 at 2019 of unamortized issuance costs, including accrued interest 4,815,546 1,067,740 Current portion of promissory note – Paycheck Protection Program 1,184,952 - Accrued expenses 2,646,800 1,372,901 Lease liability - current portion 160,726 27,726 Total current liabilities 17,067,745 7,549,523 Loan payable under credit agreement to beneficial shareholder, net of $61,617 at 2020 and $281,138 at 2019 of unamortized issuance costs and current portion 37,134,009 28,904,738 Promissory notes to related parties, net of $24,828 at 2019 of unamortized issuance costs and current portion - 3,725,172 Promissory note – Paycheck Protection Program, net of current portion 741,787 - Accrued payroll and related taxes net of current portion 204,437 - Lease liabilities less current portion 1,947,355 2,067,184 Total liabilities 57,095,333 42,246,617 STOCKHOLDERS’ EQUITY Series 1 Convertible Preferred Stock, $0.001 par value - designated 250,000 shares, issued and outstanding 170,332 shares at 2020 and 171,191 shares at 2019 at $5.00 stated value 851,660 855,955 Series 2 Convertible Preferred Stock, $0.001 par value - designated 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 21,359,945 shares at 2020 and 17,783,960 shares at 2019 2,136 1,779 Additional paid in capital 36,843,326 35,313,721 Accumulated deficit (48,495,076) (48,155,180)Total stockholders’ equity 11,154,046 9,968,275 $68,249,379 $52,214,892 FLEXSHOPPER, INC.CONSOLIDATED STATEMENTS OF CASH FLOWSFor the years ended December 31, 2020 and 2019 2020 2019 CASH FLOWS FROM OPERATING ACTIVITIES: Net (loss)/ income $(339,896) $577,415 Adjustments to reconcile net (loss)/ income to net cash used in operating activities: Depreciation and impairment of lease merchandise 63,308,210 58,253,095 Other depreciation and amortization 2,577,084 2,524,422 Compensation expense related to issuance of stock options and warrants 1,388,755 723,394 Provision for doubtful accounts (31,930,714) 34,838,046 Interest in kind added to promissory notes balance 13,388 - Payment of interest in kind under promissory notes - 73,073 Payment of interest in kind under credit agreement - 170,550 Changes in operating assets and liabilities: Accounts receivable 30,170,332 (36,734,415)Prepaid expenses and other (195,104) (352,710)Lease merchandise (75,067,446) (56,951,502)Security deposits 2,943 9,210 Accounts payable 3,339,730 (3,814,098)Lease liabilities 198,528 (124,319)Accrued payroll and related taxes 43,271 120,172 Accrued expenses 1,283,372 218,206 Net cash used in operating activities (5,207,547) (469,461) CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment, including capitalized software costs (3,098,194) (2,241,172)Net cash used in investing activities (3,098,194) (2,241,172) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from loan payable under credit agreement 15,033,000 12,396,078 Repayment of loan payable under credit agreement (7,023,250) (11,815,488)Proceeds from promissory notes to related parties, net of fees - 3,440,000 Proceeds from promissory notes- Paycheck Protection Program, net of fees 1,914,100 - Repayment of promissory note - (500,000)Principal payment under finance lease obligation (6,664) (2,527)Refund of equity issuance related costs - 61,509 Proceeds from exercise of warrants 131,250 43,875 Proceeds from exercise of stock options 5,662 69,406 Repayment of installment loan (11,207) (11,208)Debt issuance related costs (64,390) (243,750)Net cash provided by financing activities 9,978,501 3,437,895 INCREASE IN CASH 1,672,760 727,262 CASH, beginning of period 6,868,472 6,141,210 CASH, end of period $8,541,232 $6,868,472 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 inventory), 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. Key performance metrics for the three and twelve months ended December 31, 2020 and 2019 were as follows: Three months ended December 31, 2020 2019 $ Change % ChangeAdjusted EBITDA: Net loss (418,879) (1,004,164) 585,285 (58.3)Provision for income taxes 663,050 216,400 446,650 206.4 Amortization of debt costs 71,514 94,346 (22,832) (24.2)Other amortization and depreciation 615,881 550,140 65,741 11.9 Interest expense, excluding amortization of debt costs 1,016,964 950,305 66,659 7.0 Stock compensation 188,020 149,927 38,093 25.4 Product/infrastructure expense 17,457 95,513 (78,056) (81.7)Warrants compensation-consulting agreement - 84,361 (84,361) (100.0)Executive separation agreement 396,090 - 396,090 - Adjusted EBITDA$2,550,097 $1,136,828 $1,413,269 124.32 Twelve months ended December 31, 2020 2019 $ Change % ChangeAdjusted EBITDA: Net (loss) / income (339,896) 577,415 (917,311) (158.9)Provision for income taxes 663,050 216,400 446,650 206.4 Amortization of debt costs 305,797 324,686 (18,889) (5.8)Other amortization and depreciation 2,271,287 2,199,737 71,550 3.3 Interest expense, excluding amortization of debt costs 3,996,764 3,985,736 11,028 0.3 Stock compensation 981,261 595,833 385,428 64.7 Product/infrastructure expense 299,287 401,896 (102,609) (25.5)Warrants compensation-consulting agreement 139,480 127,561 11,919 9.3 Executive separation agreement 396,090 - 396,090 - Adjusted EBITDA$8,713,120 $8,429,264 $283,856 3.4 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. About FlexShopper FlexShopper, LLC, a wholly owned subsidiary of FlexShopper, Inc. (FPAY), is a financial and technology company that provides brand name electronics, home furnishings and other durable goods to consumers on a lease-to-own (LTO) basis through its e-commerce marketplace (www.FlexShopper.com) as well as its patented and patent pending systems. FlexShopper also provides LTO technology platforms to retailers and e-retailers to facilitate transactions with consumers that want to acquire their products, but do not have sufficient cash or credit. FlexShopper approves consumers utilizing its proprietary consumer screening model, collects from consumers under an LTO contract and funds the LTO transactions by paying merchants for the goods. 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. These statements include the Company’s financial guidance for fiscal year 2019. 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 during the holiday season, 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 limited operating history, limited cash and history of losses; 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: Jeremy HellmanVice PresidentThe Equity Group212-836-9626jhellman@equityny.com FlexShopper, Inc.Investor Relationsir@flexshopper.comFlexShopper, Inc.