FlexShopper, Inc. Reports 2024 First Quarter and Year End Financial Results

BOCA RATON, Fla., May 13, 2024 (GLOBE NEWSWIRE) -- FlexShopper, Inc. (Nasdaq:FPAY) (“FlexShopper”), a leading national online lease-to-own (“LTO”) retailer and payment solution provider for underserved consumers, today announced its financial results for the quarter ended March 31, 2024.

Results for Quarter Ended March 31, 2024, vs. Quarter Ended March 31, 2023:

  • Total fundings decreased 1.1% to $26.0 million from $26.3 million

  • Total revenues increased 10.1% to $33.9 million from $30.8 million

  • Gross profit increased 30.9% to $17.8 million from $13.6 million

  • Adjusted EBITDA1 increased by $1.2 million to $7.6 million from $6.4 million

  • Operating income increased 19.0% to $5.0 million from $4.2 million

  • Net loss attributable to common stockholders of $(1.3) million, or $(0.06) per diluted share, compared to net loss attributable to common stockholders of $(1.2) million, or $(0.06) per diluted share

  • Core earnings1 increased 64.7% to a gain of $354 thousand from a gain of $215 thousand

Conference Call and Webcast Details

Conference call

Date: Tuesday, May 14, 2024
Time: 8:00 a.m. Eastern Time
Participant Dial-In Numbers:

Domestic callers: (877) 407-2988
International callers: +1 (201) 389-0923

Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=rigoYWk3

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:


An audio replay of the call will be archived on the Company’s website.

1Adjusted EBITDA and core earnings are a non-GAAP financial measure. Refer to the definition and reconciliation of these measures under “Non-GAAP Measures”.


 For the three months ended
March 31,
 2024  2023 
Lease revenues and fees, net$25,833,736  $24,714,158 
Loan revenues and fees, net of changes in fair value 7,331,277   6,071,617 
Retail revenues 779,860   - 
Total revenues 33,944,873   30,785,775 
Costs and expenses:       
Depreciation and impairment of lease merchandise 14,685,863   15,345,788 
Loan origination costs and fees 821,827   1,833,627 
Cost of retail revenues 611,204   - 
Marketing 1,765,572   1,099,189 
Salaries and benefits 4,083,918   2,726,890 
Operating expenses 6,932,507   5,627,708 
Total costs and expenses 28,900,891   26,633,202 
Operating income 5,043,982   4,152,573 
Interest expense including amortization of debt issuance costs 5,315,094   4,531,327 
Loss before income taxes (271,112)  (378,754)
Benefit from income taxes 56,933   148,539 
Net loss (214,179)  (230,215)
Dividends on Series 2 Convertible Preferred Shares 1,069,456   972,233 
Net loss attributable to common and Series 1 Convertible Preferred shareholders$(1,283,635) $(1,202,448)
Basic and diluted loss per common share:       
Basic$(0.06) $(0.06)
Diluted$(0.06) $(0.06)
Basic 21,586,019   21,751,304 
Diluted 21,586,019   21,751,304 


 March 31,
  December 31,
Cash$5,593,750  $4,413,130 
Lease receivables, net 49,316,032   44,795,090 
Loan receivables at fair value 39,457,230   35,794,290 
Prepaid expenses and other assets 3,308,255   3,300,677 
Lease merchandise, net 25,896,510   29,131,440 
Total current assets 123,571,777   117,434,627 
Property and equipment, net 9,588,238   9,308,859 
Right of use asset, net 1,190,482   1,237,010 
Intangible assets, net 12,948,971   13,391,305 
Other assets, net 2,313,988   2,175,215 
Deferred tax asset, net 13,000,294   12,943,361 
Total assets$162,613,750  $156,490,377 
Accounts payable$3,370,054  $7,139,848 
Accrued payroll and related taxes 700,208   578,197 
Promissory notes to related parties, including accrued interest 198,398   198,624 
Accrued expenses 4,498,602   3,972,397 
Lease liability - current portion 253,936   245,052 
Total current liabilities 9,021,198   12,134,118 
Loan payable under credit agreement to beneficial shareholder, net of unamortized issuance costs of $1,500,000 at March 31, 2024 and $70,780 at December 31, 2023 105,566,690   96,384,220 
Promissory notes to related parties, net of unamortized issuance cost of $535,256 at March 31, 2024 and $649,953 at December 31, 2023, and net of current portion 10,214,744   10,100,047 
Loan payable under Basepoint credit agreement, net of unamortized issuance costs of $83,347 at March 31, 2024 and $92,963 at December 31, 2023 7,329,258   7,319,641 
Lease liabilities, net of current portion 1,254,239   1,321,578 
Total liabilities 133,386,129   127,259,604 
Series 1 Convertible Preferred Stock, $0.001 par value - authorized 250,000 shares, issued and outstanding 170,332 shares at $5.00 stated value 851,660   851,660 
Series 2 Convertible Preferred Stock, $0.001 par value - authorized 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 21,752,304 shares at March 31, 2024 and 21,752,304 shares at December 31, 2023 2,176   2,176 
Treasury shares, at cost - 169,447 shares at March 31, 2024 and 164,029 shares at December 31, 2023 (172,855)  (166,757)
Additional paid in capital 42,633,019   42,415,894 
Accumulated deficit (36,038,379)  (35,824,200)
Total stockholders’ equity 29,227,621   29,230,773 
 $162,613,750  $156,490,377 

For the three months ended March 31, 2024 and 2023

 2024  2023 
Net loss$(214,179) $(230,215)
Adjustments to reconcile net loss to net cash (used in)/provided by operating activities:       
Depreciation and impairment of lease merchandise 14,685,863   15,345,788 
Other depreciation and amortization 2,315,487   1,826,157 
Amortization of debt issuance costs 195,095   70,367 
Amortization of discount on the promissory note related to acquisition -   59,239 
Compensation expense related to stock-based compensation 217,125   420,748 
Provision for doubtful accounts 9,484,049   11,238,415 
Interest in kind added to promissory notes balance -   1,351 
Deferred income tax (56,933)  (148,539)
Net changes in the fair value of loans receivables at fair value (4,211,396)  (984,652)
Changes in operating assets and liabilities:       
Lease receivables (14,004,991)  (12,852,307)
Loans receivables at fair value 548,456   4,599,208 
Prepaid expenses and other assets (19,349)  576,689 
Lease merchandise (11,450,933)  (10,703,452)
Purchase consideration payable related to acquisition -   141,275 
Lease liabilities (9,665)  (6,032)
Accounts payable (3,769,794)  (2,668,765)
Accrued payroll and related taxes 122,011   254,550 
Accrued expenses 525,976   (1,340,486)
Net cash (used in)/provided by operating activities (5,643,178)  5,599,339 
Purchases of property and equipment, including capitalized software costs (1,815,091)  (1,753,800)
Purchases of data costs (464,441)  (169,082)
Net cash used in investing activities (2,279,532)  (1,922,882)
Proceeds from loan payable under credit agreement 10,611,690   2,750,000 
Repayment of loan payable under credit agreement -   (2,575,000)
Debt issuance related costs (1,500,000)  - 
Proceeds from exercise of stock options -   1,185 
Principal payment under finance lease obligation (2,262)  (2,526)
Repayment of purchase consideration payable related to acquisition -   (153,938)
Purchases of treasury stock (6,098)  - 
Net cash provided by financing activities 9,103,330   19,721 
INCREASE IN CASH 1,180,620   3,696,178 
CASH, beginning of period 4,413,130   6,173,349 
CASH, end of period$5,593,750  $9,869,527 
Supplemental cash flow information:       
Interest paid$5,057,635  $3,867,982 

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 merchandise), 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.

Core earnings represents the GAAP net earnings/ (loss) adjusted for “special items” that we view as extraordinary, unusual, or non-recurring in nature or which we believe do not reflect our core business activities.

Key performance metrics for the three months ended March 31, 2024 and 2023 are as follows:

 Three months ended
March 31,
 2024  2023  $ Change  % Change 
Adjusted EBITDA:           
Net loss$(214,179) $(230,215) $16,036   (7.0)
Income taxes (56,933)  (148,539)  91,606   (61.7)
Amortization of debt issuance costs 195,095   70,367   124,728   177.3 
Amortization of discount on the promissory note related to acquisition -   59,239   (59,239)  (100.0)
Other amortization and depreciation 2,315,487   1,826,157   489,330   26.8 
Interest expense 5,119,999   4,401,721   718,278   16.3 
Stock-based compensation 217,125   420,748   (203,623)  (48.4)
Adjusted EBITDA$7,576,594  $6,399,478  $1,177,116   18.4 

 Three months ended
March 31,
 2024  2023  $ Change  % Change 
Core earnings:           
GAAP results- Net loss$(214,179) $(230,215) $16,036   (7.0)
Acquired intangible assets amortization 442,334   442,334   -   - 
Non recurring employment expenses  126,144   2,826   123,318   4,364.7 
Non-GAAP adjusted results- Core earnings$354,299  $214,945  $139,354   64.8 

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.

The Company refers to Core earnings in the above table as the Company uses this additional measurement to assist our executive team in comparing our performance on a more consistent basis for purposes of business decision-making by removing the impact of certain items management believes do not directly reflect our core operations.

About FlexShopper

FlexShopper, Inc. (FPAY) is a financial technology company that provides electronics, home furnishings and other durable goods to underserved consumers on a lease-to-own (LTO) basis through its patented e-commerce marketplace (www.FlexShopper.com). FlexShopper also provides LTO and loan technology platforms to a growing number of retailers and e-retailers to facilitate transactions with consumers without access to traditional financing.

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. 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, 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 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.


FlexShopper, Inc.
Investor Relations

FlexShopper, Inc.