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Open Lending Reports Second Quarter 2023 Financial Results
来源: Nasdaq GlobeNewswire / 08 8月 2023 16:05:01 America/New_York
AUSTIN, Texas, Aug. 08, 2023 (GLOBE NEWSWIRE) -- Open Lending Corporation (Nasdaq: LPRO) (the “Company” or “Open Lending”), an industry trailblazer in lending enablement and risk analytics solutions for financial institutions, today reported financial results for its second quarter of 2023.
“We are pleased to have reported results ahead of our expectations again in the second quarter, including the certification of 34,354 loans,” said Keith Jezek, CEO of Open Lending. “Our intense focus on optimizing sales channels, enhancing our technology offering and attracting and retaining top talent drove positive results for the quarter and puts us in a position to capture pent-up demand when the industry inevitably recovers.”
Three Months Ended June 30, 2023 Highlights
- The Company facilitated 34,354 certified loans during the second quarter of 2023, compared to 44,531 certified loans in the second quarter of 2022
- Total revenue was $38.2 million during the second quarter of 2023, compared to $52.0 million in the second quarter of 2022
- Gross profit was $32.0 million during the second quarter of 2023, compared to $47.0 million in the second quarter of 2022
- Net income was $11.4 million during the second quarter of 2023, compared to $23.1 million in the second quarter of 2022
- Adjusted EBITDA was $20.7 million during the second quarter of 2023, compared to $34.0 million in the second quarter of 2022
Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure is provided in the financial table included at the end of this press release. An explanation of this measure and how it is calculated is also included under the heading “Non-GAAP Financial Measures.”
Third Quarter 2023 Outlook
Based on trends into third quarter 2023, the Company is issuing guidance ranges as follows:Total Certified Loans 26,000 - 30,000 Total Revenue $29 - $34 million Adjusted EBITDA $13 - $17 million The guidance provided above includes forward-looking statements within the meaning of U.S. securities laws. See “Forward-Looking Statements” below.
Conference Call
Open Lending will host a conference call to discuss the second quarter 2023 financial results today at 5:00 pm ET. The conference call will be webcast live from the Company's investor relations website at https://investors.openlending.com/ under the “Events” section. The conference call can also be accessed live over the phone by dialing (844) 512-2921, or for international callers (412) 317-6671; the conference ID is 10180171. An archive of the webcast will be available at the same location on the website shortly after the call has concluded.About Open Lending
Open Lending (Nasdaq: LPRO) provides loan analytics, risk-based pricing, risk modeling and default insurance to auto lenders throughout the United States. For over 20 years, we have been empowering financial institutions to create profitable auto loan portfolios with less risk and more reward. For more information, please visit www.openlending.com.Forward-Looking Statements
This press release includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995, including statements related to market trends, consumer behavior and demand for automotive loans, as well as future financial performance under the heading “Third Quarter 2023 Outlook” above. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements are based on various assumptions and on the current expectations of the Company’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the Company’s control. These forward-looking statements are subject to a number of risks and uncertainties, including general economic, market, political and business conditions; applicable taxes, inflation, supply chain disruptions including global hostilities and responses thereto, interest rates and the regulatory environment; the outcome of judicial proceedings to which Open Lending may become a party; failure to realize the anticipated benefits of the business combination with Nebula Acquisition Corporation; and other risks discussed in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2022. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that the Company presently does not know or that they currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect the Company’s expectations, plans or forecasts of future events and views as of the date of this press release. The Company anticipates that subsequent events and developments will cause their assessments to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.Non-GAAP Financial Measures
The non-GAAP financial measures included in this press release are financial information that has not been prepared in accordance with GAAP. The Company uses Adjusted EBITDA, Adjusted EBITDA margin and Adjusted operating cash flows internally in analyzing our financial results and believes these measures are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. The Company believes that the use of non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures to investors.The Company believes these measures provide useful information to investors and others in understanding and evaluating its operating results in the same manner as its management and board of directors. In addition, these measures provide useful measures for period-to-period comparisons of our business, as they remove the effect of certain non-cash items and certain non-recurring variable charges. Adjusted EBITDA is defined as GAAP net income excluding interest expense, income taxes, depreciation and amortization expense of property and equipment, and share-based compensation expense. Adjusted EBITDA margin is defined as Adjusted EBITDA expressed as a percentage of total revenue. Adjusted operating cash flows is defined as Adjusted EBITDA, minus CAPEX, +/- change in contract assets.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measure provided in the financial statement tables included below in this press release.
Contact:
ICR for Open Lending
Investors
openlending@icrinc.comOPEN LENDING CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited, in thousands, except share data)June 30, 2023 December 31, 2022 Assets Current assets Cash and cash equivalents $ 224,445 $ 204,450 Restricted cash 5,337 4,069 Accounts receivable, net 6,329 5,721 Current contract assets, net 33,651 54,429 Income tax receivable 11,764 9,714 Other current assets 2,980 2,361 Total current assets 284,506 280,744 Property and equipment, net 3,013 2,573 Operating lease right-of-use asset, net 4,305 4,610 Contract assets 26,004 21,001 Deferred tax asset, net 63,346 65,128 Other assets 5,626 5,575 Total assets $ 386,800 $ 379,631 Liabilities and stockholders’ equity Current liabilities Accounts payable $ 30 $ 288 Accrued expenses 7,491 6,388 Current portion of debt 3,750 3,750 Third-party claims administration liability 5,318 4,055 Other current liabilities 1,379 626 Total current liabilities 17,968 15,107 Long-term debt, net of deferred financing costs 141,984 143,683 Operating lease liabilities 3,775 4,082 Other liabilities 3,923 3,935 Total liabilities 167,650 166,807 Commitments and contingencies Stockholders’ equity Preferred stock, $0.01 par value; 10,000,000 shares authorized and none issued and outstanding — — Common stock, $0.01 par value; 550,000,000 shares authorized, 128,198,185 shares issued and 120,696,156 shares outstanding as of June 30, 2023 and 128,198,185 shares issued and 123,646,059 shares outstanding as of December 31, 2022 1,282 1,282 Additional paid-in capital 501,374 499,625 Accumulated deficit (191,910 ) (215,819 ) Treasury stock at cost, 7,502,029 shares at June 30, 2023 and 4,552,126 at December 31, 2022 (91,596 ) (72,264 ) Total stockholders’ equity 219,150 212,824 Total liabilities and stockholders’ equity $ 386,800 $ 379,631 OPEN LENDING CORPORATION
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except share data)Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Revenue Profit share $ 17,809 $ 29,157 $ 36,411 $ 57,467 Program fees 17,893 20,731 35,194 40,457 Claims administration and other service fees 2,452 2,156 4,910 4,188 Total revenue 38,154 52,044 76,515 102,112 Cost of services 6,117 5,085 11,548 9,873 Gross profit 32,037 46,959 64,967 92,239 Operating expenses General and administrative 10,971 7,968 21,166 15,450 Selling and marketing 4,218 3,994 8,627 7,727 Research and development 1,128 2,188 2,358 4,011 Total operating expenses 16,317 14,150 32,151 27,188 Operating income 15,720 32,809 32,816 65,051 Interest expense (2,655 ) (1,124 ) (5,042 ) (1,927 ) Interest income 2,452 22 4,516 47 Other expense, net (6 ) — (6 ) — Income before income taxes 15,511 31,707 32,284 63,171 Income tax expense 4,140 8,581 8,375 16,891 Net income $ 11,371 $ 23,126 $ 23,909 $ 46,280 Net income per common share Basic $ 0.09 $ 0.18 $ 0.20 $ 0.37 Diluted $ 0.09 $ 0.18 $ 0.20 $ 0.37 Weighted average common shares outstanding Basic 120,648,658 126,221,689 121,878,503 126,218,710 Diluted 121,540,094 126,222,366 122,456,565 126,219,115 OPEN LENDING CORPORATION
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)Six Months Ended June 30, 2023 2022 Cash flows from operating activities Net income $ 23,909 $ 46,280 Adjustments to reconcile net income to net cash provided by operating activities: Share-based compensation 4,163 2,269 Depreciation and amortization of property and equipment 496 447 Amortization of debt issuance costs 210 167 Non-cash operating lease cost 305 285 Deferred income taxes 1,782 (998 ) Other 6 — Changes in assets & liabilities: Accounts receivable, net (608 ) (435 ) Contract assets, net 15,775 6,208 Other current and non-current assets (633 ) 1,477 Accounts payable (259 ) (885 ) Accrued expenses 857 2,094 Income tax receivable, net (2,133 ) (2,964 ) Operating lease liabilities (272 ) (240 ) Third-party claims administration liability 1,263 (13 ) Other current and non-current liabilities 718 (105 ) Net cash provided by operating activities 45,579 53,587 Cash flows from investing activities Purchase of property and equipment (77 ) (70 ) Capitalized software development costs (766 ) (294 ) Net cash used in investing activities (843 ) (364 ) Cash flows from financing activities Payments on term loans (1,875 ) (1,562 ) Shares repurchased (21,323 ) — Shares withheld for taxes related to restricted stock units (275 ) (63 ) Net cash (used in) provided by financing activities (23,473 ) (1,625 ) Net change in cash and cash equivalents and restricted cash 21,263 51,598 Cash and cash equivalents and restricted cash at the beginning of the period 208,519 119,509 Cash and cash equivalents and restricted cash at the end of the period $ 229,782 $ 171,107 Supplemental disclosure of cash flow information: Interest paid $ 4,974 $ 1,756 Income tax paid (refunded), net $ 8,726 $ 20,853 Non-cash investing and financing: Property and equipment accrued but not paid $ — $ 21 Share-based compensation for capitalized software development $ 42 $ — Capitalized software development costs accrued but not paid $ 59 $ 27 Accrued excise tax associated with share repurchases $ 190 $ — OPEN LENDING CORPORATION
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited, in thousands)Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net income $ 11,371 $ 23,126 $ 23,909 $ 46,280 Non-GAAP adjustments: Interest expense 2,655 1,124 5,042 1,927 Income tax expense 4,140 8,581 8,375 16,891 Depreciation and amortization of property and equipment 252 226 496 447 Share-based compensation 2,319 988 4,163 2,269 Total adjustments 9,366 10,919 18,076 21,534 Adjusted EBITDA $ 20,737 $ 34,045 $ 41,985 $ 67,814 Total revenue $ 38,154 $ 52,044 $ 76,515 $ 102,112 Adjusted EBITDA margin 54 % 65 % 55 % 66 % Adjusted operating cash flows(1) Adjusted EBITDA $ 20,737 $ 34,045 $ 41,985 $ 67,814 CAPEX (508 ) (178 ) (843 ) (364 ) Decrease (increase) in contract assets, net 6,287 704 15,775 6,208 Adjusted operating cash flows $ 26,516 $ 34,571 $ 56,917 $ 73,658 (1) Adjusted operating cash flows is defined as Adjusted EBITDA, minus CAPEX, +/- change in contract assets.
