Open Lending Reports Third Quarter 2023 Financial Results
07 Novembre 2023 - 10:05PM
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 third quarter of 2023.
“During the quarter, we continued to focus on
positioning ourselves for the future by making thoughtful
investments in our business. We believe this positions us well to
capture pent-up demand when the industry inevitably recovers,” said
Keith Jezek, CEO of Open Lending. “I remain excited about the
future of Open Lending as we have a substantial total addressable
market, a unique business model, strong value proposition and
significant growth opportunities. In addition, we have a strong
balance sheet, no near-term debt maturities and generate positive
cash flow, all of which afford us the resilience to navigate
current challenging market conditions.”
Three Months Ended
September 30, 2023
Highlights
- The Company
facilitated 29,959 certified loans during the third quarter of
2023, compared to 42,186 certified loans in the third quarter of
2022.
- Total revenue was $26.0 million
during the third quarter of 2023, compared to $50.7 million in the
third quarter of 2022. The third quarter of 2023 was impacted by an
$8.1 million reduction in estimated future profit share revenues
related to business in historic vintages as compared to a $1.7
million increase for the third quarter of 2022.
- Gross profit was $20.6 million
during the third quarter of 2023, compared to $45.5 million in the
third quarter of 2022.
- Net income was $3.0 million during
the third quarter of 2023, compared to $24.5 million in the third
quarter of 2022.
- Adjusted EBITDA was $10.3 million
during the third quarter of 2023, compared to $29.4 million in the
third 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.”
Fourth Quarter
2023 OutlookBased on trends into
fourth quarter of 2023, the Company is issuing guidance ranges as
follows:
Total Certified Loans |
22,000 - 26,000 |
Total Revenue |
$25 - $29 million |
Adjusted EBITDA |
$11 - $14 million |
The guidance provided above includes
forward-looking statements within the meaning of U.S. securities
laws. See “Forward-Looking Statements” below.
Conference CallOpen Lending
will host a conference call to discuss the third 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
(877) 407-4018, or for international callers (201) 689-8471; the
conference ID is 13741179. 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 StatementsThis
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 “Fourth
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 MeasuresThe
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
LendingInvestorsopenlending@icrinc.com
|
OPEN LENDING CORPORATIONCondensed
Consolidated Balance Sheets(Unaudited, in
thousands, except share data) |
|
|
|
September 30, 2023 |
|
December 31, 2022 |
Assets |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
232,608 |
|
|
$ |
204,450 |
|
Restricted cash |
|
|
5,803 |
|
|
|
4,069 |
|
Accounts receivable, net |
|
|
5,266 |
|
|
|
5,721 |
|
Current contract assets, net |
|
|
37,850 |
|
|
|
54,429 |
|
Income tax receivable |
|
|
9,192 |
|
|
|
9,714 |
|
Other current assets |
|
|
3,137 |
|
|
|
2,361 |
|
Total current assets |
|
|
293,856 |
|
|
|
280,744 |
|
Property and equipment, net |
|
|
3,713 |
|
|
|
2,573 |
|
Operating lease right-of-use asset, net |
|
|
4,149 |
|
|
|
4,610 |
|
Contract assets |
|
|
11,381 |
|
|
|
21,001 |
|
Deferred tax asset, net |
|
|
64,742 |
|
|
|
65,128 |
|
Other assets |
|
|
5,539 |
|
|
|
5,575 |
|
Total assets |
|
$ |
383,380 |
|
|
$ |
379,631 |
|
Liabilities and stockholders’ equity |
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable |
|
$ |
221 |
|
|
$ |
288 |
|
Accrued expenses |
|
|
9,302 |
|
|
|
6,388 |
|
Current portion of debt |
|
|
3,750 |
|
|
|
3,750 |
|
Third-party claims administration liability |
|
|
5,804 |
|
|
|
4,055 |
|
Other current liabilities |
|
|
896 |
|
|
|
626 |
|
Total current liabilities |
|
|
19,973 |
|
|
|
15,107 |
|
Long-term debt, net of deferred financing costs |
|
|
141,139 |
|
|
|
143,683 |
|
Operating lease liabilities |
|
|
3,617 |
|
|
|
4,082 |
|
Other liabilities |
|
|
3,926 |
|
|
|
3,935 |
|
Total liabilities |
|
|
168,655 |
|
|
|
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 119,499,504 shares outstanding as of
September 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 |
|
|
503,981 |
|
|
|
499,625 |
|
Accumulated deficit |
|
|
(188,907 |
) |
|
|
(215,819 |
) |
Treasury
stock at cost, 8,698,681 shares at September 30, 2023 and
4,552,126 at December 31, 2022 |
|
|
(101,631 |
) |
|
|
(72,264 |
) |
Total stockholders’ equity |
|
|
214,725 |
|
|
|
212,824 |
|
Total liabilities and stockholders’ equity |
|
$ |
383,380 |
|
|
$ |
379,631 |
|
|
OPEN LENDING CORPORATIONCondensed
Consolidated Statements of Operations(Unaudited,
in thousands, except share data) |
|
|
Three Months EndedSeptember 30, |
|
Nine Months EndedSeptember 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue |
|
|
|
|
|
|
|
Profit share |
$ |
8,022 |
|
|
$ |
26,523 |
|
|
$ |
44,433 |
|
|
$ |
83,990 |
|
Program fees |
|
15,416 |
|
|
|
21,845 |
|
|
|
50,610 |
|
|
|
62,302 |
|
Claims administration and other service fees |
|
2,568 |
|
|
|
2,293 |
|
|
|
7,478 |
|
|
|
6,481 |
|
Total revenue |
|
26,006 |
|
|
|
50,661 |
|
|
|
102,521 |
|
|
|
152,773 |
|
Cost of services |
|
5,369 |
|
|
|
5,199 |
|
|
|
16,917 |
|
|
|
15,072 |
|
Gross profit |
|
20,637 |
|
|
|
45,462 |
|
|
|
85,604 |
|
|
|
137,701 |
|
Operating expenses |
|
|
|
|
|
|
|
General and administrative |
|
9,875 |
|
|
|
9,335 |
|
|
|
31,041 |
|
|
|
24,785 |
|
Selling and marketing |
|
4,509 |
|
|
|
5,981 |
|
|
|
13,136 |
|
|
|
13,708 |
|
Research and development |
|
1,717 |
|
|
|
2,355 |
|
|
|
4,075 |
|
|
|
6,366 |
|
Total operating expenses |
|
16,101 |
|
|
|
17,671 |
|
|
|
48,252 |
|
|
|
44,859 |
|
Operating income |
|
4,536 |
|
|
|
27,791 |
|
|
|
37,352 |
|
|
|
92,842 |
|
Interest expense |
|
(2,799 |
) |
|
|
(1,608 |
) |
|
|
(7,841 |
) |
|
|
(3,535 |
) |
Interest income |
|
2,801 |
|
|
|
321 |
|
|
|
7,317 |
|
|
|
368 |
|
Other expense, net |
|
(3 |
) |
|
|
(239 |
) |
|
|
(9 |
) |
|
|
(239 |
) |
Income before income taxes |
|
4,535 |
|
|
|
26,265 |
|
|
|
36,819 |
|
|
|
89,436 |
|
Income tax expense |
|
1,532 |
|
|
|
1,736 |
|
|
|
9,907 |
|
|
|
18,627 |
|
Net income |
$ |
3,003 |
|
|
$ |
24,529 |
|
|
$ |
26,912 |
|
|
$ |
70,809 |
|
Net income per common share |
|
|
|
|
|
|
|
Basic |
$ |
0.02 |
|
|
$ |
0.19 |
|
|
$ |
0.22 |
|
|
$ |
0.56 |
|
Diluted |
$ |
0.02 |
|
|
$ |
0.19 |
|
|
$ |
0.22 |
|
|
$ |
0.56 |
|
Weighted average common shares outstanding |
|
|
|
|
|
|
|
Basic |
|
120,217,857 |
|
|
|
126,228,723 |
|
|
|
121,318,872 |
|
|
|
126,222,084 |
|
Diluted |
|
121,298,880 |
|
|
|
126,228,723 |
|
|
|
122,065,718 |
|
|
|
126,222,415 |
|
|
OPEN LENDING CORPORATIONCondensed
Consolidated Statements of Cash Flows(Unaudited,
in thousands) |
|
|
|
Nine Months Ended September 30, |
|
|
|
2023 |
|
|
|
2022 |
|
Cash flows from operating activities |
|
|
|
|
Net
income |
|
$ |
26,912 |
|
|
$ |
70,809 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
Share-based compensation |
|
|
6,826 |
|
|
|
3,564 |
|
Depreciation and amortization of property and equipment |
|
|
824 |
|
|
|
680 |
|
Amortization of debt issuance costs |
|
|
319 |
|
|
|
265 |
|
Non-cash operating lease cost |
|
|
461 |
|
|
|
431 |
|
Deferred income taxes |
|
|
386 |
|
|
|
(7,860 |
) |
Other |
|
|
10 |
|
|
|
— |
|
Changes
in assets & liabilities: |
|
|
|
|
Accounts receivable, net |
|
|
455 |
|
|
|
(129 |
) |
Contract assets, net |
|
|
26,199 |
|
|
|
13,016 |
|
Other current and non-current assets |
|
|
(789 |
) |
|
|
1,331 |
|
Accounts payable |
|
|
(67 |
) |
|
|
(1,101 |
) |
Accrued expenses |
|
|
2,299 |
|
|
|
4,849 |
|
Income tax receivable, net |
|
|
513 |
|
|
|
(984 |
) |
Operating lease liabilities |
|
|
(412 |
) |
|
|
(363 |
) |
Third-party claims administration liability |
|
|
1,749 |
|
|
|
308 |
|
Other current and non-current liabilities |
|
|
218 |
|
|
|
181 |
|
Net cash provided by
operating activities |
|
|
65,903 |
|
|
|
84,997 |
|
Cash flows from investing activities |
|
|
|
|
Purchase
of property and equipment |
|
|
(103 |
) |
|
|
(222 |
) |
Capitalized software
development costs |
|
|
(1,485 |
) |
|
|
(415 |
) |
Net cash used in
investing activities |
|
|
(1,588 |
) |
|
|
(637 |
) |
Cash flows from financing activities |
|
|
|
|
Proceeds
from term loans |
|
|
— |
|
|
|
150,000 |
|
Payments
on term loans |
|
|
(2,813 |
) |
|
|
(122,656 |
) |
Payments
on revolving facility |
|
|
— |
|
|
|
(25,000 |
) |
Payment
of deferred financing cost |
|
|
— |
|
|
|
(976 |
) |
Shares
repurchased |
|
|
(31,322 |
) |
|
|
— |
|
Shares
withheld for taxes related to restricted stock units |
|
|
(288 |
) |
|
|
(81 |
) |
Net cash (used in)
provided by financing activities |
|
|
(34,423 |
) |
|
|
1,287 |
|
Net
change in cash and cash equivalents and restricted cash |
|
|
29,892 |
|
|
|
85,647 |
|
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 |
|
$ |
238,411 |
|
|
$ |
205,156 |
|
Supplemental disclosure of cash flow
information: |
|
|
|
|
Interest
paid |
|
$ |
7,593 |
|
|
$ |
2,859 |
|
Income tax paid, net |
|
$ |
9,008 |
|
|
$ |
27,471 |
|
Non-cash investing and
financing: |
|
|
|
|
Property and equipment accrued
but not paid |
|
$ |
2 |
|
|
$ |
5 |
|
Share-based compensation for capitalized software development |
|
$ |
63 |
|
|
$ |
— |
|
Capitalized software development costs accrued but not paid |
|
$ |
230 |
|
|
$ |
— |
|
Accrued
excise tax associated with share repurchases |
|
$ |
290 |
|
|
$ |
— |
|
|
OPEN LENDING CORPORATIONReconciliation of
GAAP to Non-GAAP Financial Measures(Unaudited, in
thousands) |
|
|
Three Months EndedSeptember 30, |
|
Nine Months EndedSeptember 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net
income |
$ |
3,003 |
|
|
$ |
24,529 |
|
|
$ |
26,912 |
|
|
$ |
70,809 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
Interest expense |
|
2,799 |
|
|
|
1,608 |
|
|
|
7,841 |
|
|
|
3,535 |
|
Income tax expense |
|
1,532 |
|
|
|
1,736 |
|
|
|
9,907 |
|
|
|
18,627 |
|
Depreciation and amortization of property and equipment |
|
328 |
|
|
|
233 |
|
|
|
824 |
|
|
|
680 |
|
Share-based compensation |
|
2,663 |
|
|
|
1,295 |
|
|
|
6,826 |
|
|
|
3,564 |
|
Total
adjustments |
|
7,322 |
|
|
|
4,872 |
|
|
|
25,398 |
|
|
|
26,406 |
|
Adjusted
EBITDA |
$ |
10,325 |
|
|
$ |
29,401 |
|
|
$ |
52,310 |
|
|
$ |
97,215 |
|
Total revenue |
$ |
26,006 |
|
|
$ |
50,661 |
|
|
$ |
102,521 |
|
|
$ |
152,773 |
|
Adjusted EBITDA margin |
|
40 |
% |
|
|
58 |
% |
|
|
51 |
% |
|
|
64 |
% |
|
|
|
|
|
|
|
|
Adjusted operating
cash flows(1) |
|
|
|
|
|
|
|
Adjusted
EBITDA |
$ |
10,325 |
|
|
$ |
29,401 |
|
|
$ |
52,310 |
|
|
$ |
97,215 |
|
CAPEX |
|
(745 |
) |
|
|
(273 |
) |
|
|
(1,588 |
) |
|
|
(637 |
) |
Decrease
(increase) in contract assets, net |
|
10,424 |
|
|
|
6,808 |
|
|
|
26,199 |
|
|
|
13,016 |
|
Adjusted operating cash flows |
$ |
20,004 |
|
|
$ |
35,936 |
|
|
$ |
76,921 |
|
|
$ |
109,594 |
|
(1) Adjusted operating cash flows is defined as Adjusted EBITDA,
minus CAPEX, +/- change in contract assets.
Grafico Azioni Open Lending (NASDAQ:LPRO)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Open Lending (NASDAQ:LPRO)
Storico
Da Giu 2023 a Giu 2024