OppFi Exceeds 2023 Earnings Guidance, Provides Outlook for Continued Profitable Growth in 2024

Published
  • Record total revenue and ending receivables for full-year 2023
  • Ninth consecutive year of net income
  • Net income of $39.5 million for full-year 2023
  • Adjusted net income of $43.3 million for full-year 2023
  • Net charge off rate as a percentage of total revenue improved by 8.1 percentage points to 43.5% for full-year 2023
  • Total revenue increased 10.7% year over year to $132.9 million for fourth quarter of 2023
  • Net income of $1.9 million for fourth quarter of 2023
  • Adjusted net income of $8.9 million for fourth quarter of 2023
  • Annualized net charge off rate as a percentage of total revenue improved by 12.9 percentage points year over year to 46.4% for fourth quarter of 2023

CHICAGO--(BUSINESS WIRE)-- OppFi Inc. (NYSE: OPFI; OPFI WS) (“OppFi” or the “Company”), a tech-enabled, mission-driven specialty finance platform that broadens the reach of community banks to extend credit access to everyday Americans, today reported financial results for the fourth quarter and year ended December 31, 2023.

“We’re excited to begin 2024 and leverage our strong 2023,” said Todd Schwartz, Chief Executive Officer and Executive Chairman of OppFi. “This year, we expect to continue focusing on profitable growth by maintaining prudent risk tolerances and scaling operating expenses efficiently. We ended 2023 with a strong balance sheet that provides us with optionality to create additional shareholder value.”

Financial Summary

The following tables present a summary of OppFi’s results for the three and twelve months ended December 31, 2023 and 2022.

(in thousands, except per share data) Unaudited

 

Three Months Ended December 31,

 

Change

 

 

 

2023

 

 

 

2022

 

 

%

Total revenue

 

$

132,924

 

 

$

120,030

 

 

10.7

%

Net income (loss)

 

$

1,942

 

 

$

(5,199

)

 

137.4

%

Adjusted net income (loss)(1)

 

$

8,883

 

 

$

(2,790

)

 

418.4

%

Adjusted EBITDA(1)

 

$

25,811

 

 

$

9,922

 

 

160.1

%

Basic EPS

 

$

(0.31

)

 

$

0.22

 

 

(240.9

)%

Diluted EPS(2)

 

$

(0.31

)

 

$

(0.22

)

 

40.9

%

Adjusted EPS(1,2)

 

$

0.10

 

 

$

(0.19

)

 

154.1

%

(in thousands, except per share data) Unaudited

 

Year Ended December 31,

 

Change

 

 

 

2023

 

 

 

2022

 

%

Total revenue

 

$

508,949

 

 

$

452,859

 

12.4

%

Net income

 

$

39,479

 

 

$

3,340

 

1082.0

%

Adjusted net income(1)

 

$

43,349

 

 

$

4,976

 

771.2

%

Adjusted EBITDA(1)

 

$

114,684

 

 

$

53,866

 

112.9

%

Basic EPS

 

$

(0.06

)

 

$

0.51

 

(111.8

)%

Diluted EPS(2)

 

$

(0.06

)

 

$

0.05

 

(220.

)%

Adjusted EPS(1,2)

 

$

0.51

 

 

$

0.06

 

763.0

%

(1) Non-GAAP Financial Measures: Adjusted Net Income, Adjusted EBITDA and Adjusted EPS are financial measures that have not been prepared in accordance with GAAP. See “Reconciliation of Non-GAAP Financial Measures” below for a detailed description and reconciliation of such Non-GAAP financial measures to their most directly comparable GAAP financial measures.

(2) Shares of Class V common stock that are exchangeable into shares of Class A common stock as a result of OppFi's Up-C structure are excluded from the diluted shares calculation in any period in which OppFi reports a loss because the inclusion would be antidilutive.

Fourth Quarter Key Performance Metrics

The following tables represent key quarterly metrics.

(in thousands) Unaudited

 

As of and for the Three Months Ended,

 

 

December 31, 2023

 

September 30, 2023

 

December 31, 2022

Total Net Originations(a)

 

$

191,932

 

 

$

195,671

 

 

$

185,851

 

Ending Receivables(b)

 

$

416,463

 

 

$

415,933

 

 

$

402,180

 

% of Originations by Bank Partners

 

 

100

%

 

 

98

%

 

 

95

%

Annualized Net Charge-Offs as % of Total Revenue(c)

 

 

46

%

 

 

42

%

 

 

59

%

Annualized Net Charge-Offs as % of Average Receivables(c)

 

 

59

%

 

 

55

%

 

 

70

%

Auto-Approval Rate(d)

 

 

73

%

 

 

73

%

 

 

69

%

a.

 

Total net originations include both originations by bank partners on the OppFi platform, as well as direct originations by OppFi.

b.

 

Receivables are defined as the unpaid principal balances of loans at the end of the reporting period.

c.

 

Annualized net charge-offs as a percentage of total revenue and annualized net charge-offs as a percentage of average receivables (defined as the unpaid principal of loans) represents total charge offs from the period less recoveries as a percent of total revenue and average receivables, respectively. Finance receivables are charged off at the earlier of the time when accounts reach 90 days past due on a recency basis, when OppFi receives notification of a customer bankruptcy or is otherwise deemed uncollectible.

d.

 

Auto-Approval Rate is calculated by taking the number of approved loans that are not decisioned by a loan advocate or underwriter (auto-approval) divided by the total number of loans approved.

Full-Year 2024 Guidance

  • Total revenue of $510 million to $530 million
  • Adjusted net income of $46 million to $49 million
  • Adjusted earnings per share (“EPS”) of $0.53 to $0.57 based on approximate weighted average diluted shares outstanding of 86.5 million

First Quarter 2024 Guidance

  • Adjusted earnings per share (“EPS”) of $0.05 based on approximate weighted average diluted shares outstanding of 86.0 million

Conference Call

Management will host a conference call today at 4:30 p.m. ET to discuss OppFi’s financial results and business outlook. The webcast of the conference call will be made available on the Investor Relations page of the Company's website.

The conference call can also be accessed with the following dial-in information:

  • Domestic: (877) 407-0789
  • International: (201) 689-8562

An archived version of the webcast will be available on OppFi's website.

About OppFi

OppFi (NYSE: OPFI; OPFI WS) is a tech-enabled, mission-driven specialty finance platform that broadens the reach of community banks to extend credit access to everyday Americans. Through transparency, responsible lending, financial inclusion, and an excellent customer experience, the Company supports consumers, who are turned away by mainstream options, to build better financial health. OppLoans by OppFi maintains a 4.5/5.0 star rating on Trustpilot with more than 4,100 reviews, making the Company one of the top consumer-rated financial platforms online. For more information, please visit oppfi.com.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. OppFi’s actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “possible,” “continue,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, without limitation, OppFi’s expectations with respect to its first quarter and full year 2024 guidance, the future performance of OppFi’s platform, and expectations for OppFi’s growth and future financial performance. These forward-looking statements are based on OppFi’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside OppFi’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: the impact of general economic conditions, including economic slowdowns, inflation, interest rate changes, recessions, and tightening of credit markets on OppFi’s business; the impact of challenging macroeconomic and marketplace conditions, including lingering effects of COVID-19 on OppFi’s business; the impact of stimulus or other government programs; whether OppFi will be successful in obtaining declaratory relief against the Commissioner of the Department of Financial Protection and Innovation for the State of California; whether OppFi will be subject to AB 539; whether OppFi’s bank partners will continue to lend in California and whether OppFi’s financing sources will continue to finance the purchase of participation rights in loans originated by OppFi’s bank partners in California; the impact that events involving financial institutions or the financial services industry generally, such as actual concerns or events involving liquidity, defaults, or non-performance, may have on OppFi’s business; risks related to the material weakness in OppFi’s internal controls over financial reporting; the ability of OppFi to grow and manage growth profitably and retain its key employees; risks related to new products; risks related to evaluating and potentially consummating acquisitions; concentration risk; risks related to OppFi’s ability to comply with various covenants in its corporate and warehouse credit facilities; costs related to the business combination; changes in applicable laws or regulations; the possibility that OppFi may be adversely affected by other economic, business, and/or competitive factors; risks related to management transitions; risks related to the restatement of OppFi’s financial statements and any accounting deficiencies or weaknesses related thereto; and other risks and uncertainties indicated from time to time in OppFi’s filings with the United States Securities and Exchange Commission, in particular, contained in the section or sections captioned “Risk Factors.” OppFi cautions that the foregoing list of factors is not exclusive, and readers should not place undue reliance upon any forward-looking statements, which speak only as of the date made. OppFi does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.

Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures that are unaudited and do not conform to GAAP, such as Adjusted EBT, Adjusted Net Income, Adjusted EBITDA and Adjusted EPS. Adjusted EBT is defined as Net Income, plus (1) income tax expense (benefit); (2) debt issuance cost amortization; (3) other addbacks and one-time expenses, net; and (4) sublease income. Adjusted Net Income is defined as Adjusted EBT as defined above, adjusted for taxes assuming a tax rate of 21.12% for the three months ended December 31, 2023, a tax rate of 24.68% for the three months ended December 31, 2022, a tax rate of 23.56% for the full year ended December 31, 2023, and a tax rate of 24.17% for the full year ended December 31, 2022, reflecting the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes, in order to allow for a comparison with other publicly traded companies. Adjusted EBITDA is defined as Adjusted Net Income as defined above, excluding (1) pro forma and business (non-income) taxes; (2) depreciation and amortization; and (3) interest expense. Adjusted EPS is defined as Adjusted Net Income as defined above, divided by weighted average diluted shares outstanding, which represent shares of both classes of common stock outstanding, excluding 25,500,000 shares related to earnout obligations and including the impact of unvested restricted stock units, unvested performance stock units, and the employee stock purchase plan. Adjusted EPS is useful to investors and others because, due to OppFi’s Up-C structure, Basic EPS calculated on a GAAP basis excludes a large percentage of OppFi’s outstanding shares of common stock, which are Class V Voting Stock, and Diluted EPS calculated on a GAAP basis excludes dilutive securities, including Class V Voting Stock, in any period in which OppFi reports a loss as dilutive securities are considered to be antidilutive. These non-GAAP financial measures have not been prepared in accordance with accounting principles generally accepted in the United States and may be different from non-GAAP financial measures used by other companies. OppFi believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. These non-GAAP measures with comparable names should not be considered in isolation from, or as an alternative to, financial measures determined in accordance with GAAP. See “Reconciliation of Non-GAAP Financial Measures” below for reconciliations for OppFi's non-GAAP financial measures to the most directly comparable GAAP financial measures. A reconciliation of projected full year 2024 Adjusted Net Income and projected first quarter and full year 2024 Adjusted EPS to the most directly comparable GAAP financial measures is not included in this press release because, without unreasonable efforts, the Company is unable to predict with reasonable certainty the amount or timing of non-GAAP adjustments that are used to calculate these measures.

Fourth Quarter Results of Operations

Consolidated Statements of Operations

Comparison of the three months ended December 31, 2023 and 2022

The following table presents consolidated results of operations for the three months ended December 31, 2023 and 2022 (in thousands, except number of shares and per share data).

 

 

Three Months Ended December 31,

 

Change

(unaudited)

 

 

2023

 

 

 

2022

 

 

$

 

%

Interest and loan related income

 

$

131,815

 

 

$

119,634

 

 

$

12,181

 

 

10.2

%

Other revenue

 

 

1,109

 

 

 

396

 

 

 

713

 

 

180.1

 

Total revenue

 

 

132,924

 

 

 

120,030

 

 

 

12,894

 

 

10.7

 

Change in fair value of finance receivables

 

 

(66,956

)

 

 

(71,680

)

 

 

4,724

 

 

(6.6

)

Provision for credit losses on finance receivables

 

 

(217

)

 

 

103

 

 

 

(320

)

 

(310.7

)

Net revenue

 

 

65,751

 

 

 

48,453

 

 

 

17,298

 

 

35.7

 

Expenses:

 

 

 

 

 

 

 

 

Sales and marketing

 

 

11,247

 

 

 

11,339

 

 

 

(92

)

 

(0.8

)

Customer operations

 

 

10,309

 

 

 

10,381

 

 

 

(72

)

 

(0.7

)

Technology, products, and analytics

 

 

9,696

 

 

 

8,590

 

 

 

1,106

 

 

12.9

 

General, administrative, and other

 

 

13,718

 

 

 

17,017

 

 

 

(3,299

)

 

(19.4

)

Total expenses before interest expense

 

 

44,970

 

 

 

47,327

 

 

 

(2,357

)

 

(5.0

)

Interest expense

 

 

12,071

 

 

 

10,740

 

 

 

1,331

 

 

12.4

 

Total expenses

 

 

57,041

 

 

 

58,067

 

 

 

(1,026

)

 

(1.8

)

Income (loss) from operations

 

 

8,710

 

 

 

(9,614

)

 

 

18,324

 

 

190.6

 

Change in fair value of warrant liability

 

 

(5,814

)

 

 

2,328

 

 

 

(8,142

)

 

(349.7

)

Other income

 

 

80

 

 

 

53

 

 

 

27

 

 

50.9

 

Income (loss) before income taxes

 

 

2,976

 

 

 

(7,233

)

 

 

10,209

 

 

141.1

 

Income tax expense (benefit)

 

 

1,034

 

 

 

(2,034

)

 

 

3,068

 

 

150.8

 

Net income (loss)

 

 

1,942

 

 

 

(5,199

)

 

 

7,141

 

 

137.4

 

Less: net income (loss) attributable to noncontrolling interest

 

 

7,509

 

 

 

(8,335

)

 

 

15,844

 

 

190.1

 

Net (loss) income attributable to OppFi Inc.

 

$

(5,567

)

 

$

3,136

 

 

$

(8,703

)

 

(277.5

)%

 

 

 

 

 

 

 

 

 

(Loss) earnings per share attributable to OppFi Inc.:

 

 

 

 

 

 

 

(Loss) earnings per common share:

 

 

 

 

 

 

 

 

Basic

 

$

(0.31

)

 

$

0.22

 

 

 

 

 

Diluted(a)

 

$

(0.31

)

 

$

(0.22

)

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

18,087,627

 

 

 

14,563,168

 

 

 

 

 

Diluted(a)

 

 

18,087,627

 

 

 

14,563,168

 

 

 

 

 

(a) Shares of Class V common stock that are exchangeable into shares of Class A common stock as a result of OppFi's Up-C structure are excluded from the diluted shares calculation in any period in which OppFi reports a loss because the inclusion would be antidilutive.

Comparison of the twelve months ended December 31, 2023 and 2022

The following table presents consolidated results of operations for the twelve months ended December 31, 2023 and 2022 (in thousands, except number of shares and per share data).

 

 

Year Ended December 31,

 

Change

 

 

 

2023

 

 

 

2022

 

 

$

 

%

unaudited

 

Interest and loan related income

 

$

505,430

 

 

$

451,448

 

 

$

53,982

 

 

12.0

%

Other revenue

 

 

3,519

 

 

 

1,411

 

 

 

2,108

 

 

149.4

 

Total revenue

 

 

508,949

 

 

 

452,859

 

 

 

56,090

 

 

12.4

 

Change in fair value of finance receivables

 

 

(231,419

)

 

 

(233,959

)

 

 

2,540

 

 

(1.1

)

Provision for credit losses on finance receivables

 

 

(4,348

)

 

 

(1,940

)

 

 

(2,408

)

 

124.1

 

Net revenue

 

 

273,182

 

 

 

216,960

 

 

 

56,222

 

 

25.9

 

Expenses:

 

 

 

 

 

 

 

 

Sales and marketing

 

 

46,222

 

 

 

54,407

 

 

 

(8,185

)

 

(15.0

)

Customer operations

 

 

41,559

 

 

 

42,314

 

 

 

(755

)

 

(1.8

)

Technology, products, and analytics

 

 

39,161

 

 

 

33,439

 

 

 

5,722

 

 

17.1

 

General, administrative, and other

 

 

53,135

 

 

 

57,980

 

 

 

(4,845

)

 

(8.4

)

Total expenses before interest expense

 

 

180,077

 

 

 

188,140

 

 

 

(8,063

)

 

(4.3

)

Interest expense

 

 

46,750

 

 

 

35,162

 

 

 

11,588

 

 

33.0

 

Total expenses

 

 

226,827

 

 

 

223,302

 

 

 

3,525

 

 

1.6

 

Income (loss) from operations

 

 

46,355

 

 

 

(6,342

)

 

 

52,697

 

 

830.9

 

Change in fair value of warrant liabilities

 

 

(4,976

)

 

 

9,352

 

 

 

(14,328

)

 

(153.2

)

Other income

 

 

431

 

 

 

53

 

 

 

378

 

 

713.2

 

Income before income taxes

 

 

41,810

 

 

 

3,063

 

 

 

38,747

 

 

1265.0

 

Income tax expense (benefit)

 

 

2,331

 

 

 

(277

)

 

 

2,608

 

 

941.5

 

Net income

 

 

39,479

 

 

 

3,340

 

 

 

36,139

 

 

1082.0

 

Less: net income (loss) attributable to noncontrolling interest

 

 

40,484

 

 

 

(3,758

)

 

 

44,242

 

 

1177.3

 

Net (loss) income attributable to OppFi Inc.

 

$

(1,005

)

 

$

7,098

 

 

$

(8,103

)

 

(114.2

)%

 

 

 

 

 

 

 

 

 

(Loss) earnings per share attributable to OppFi Inc.:

 

 

 

 

 

 

 

(Loss) earnings per common share:

 

 

 

 

 

 

 

 

Basic

 

$

(0.06

)

 

$

0.51

 

 

 

 

 

Diluted(a)

 

$

(0.06

)

 

$

0.05

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

16,391,199

 

 

 

13,913,626

 

 

 

 

 

Diluted(a)

 

 

16,391,199

 

 

 

84,256,084

 

 

 

 

 

(a) Shares of Class V common stock that are exchangeable into shares of Class A common stock as a result of OppFi's Up-C structure are excluded from the diluted shares calculation in any period in which OppFi reports a loss because the inclusion would be antidilutive.

Condensed Balance Sheets

Comparison of the periods ended December 31, 2023 and 2022

 

 

December 31, 2023

 

December 31, 2022

unaudited

 

Assets

 

 

 

 

Cash and restricted cash

 

$

73,943

 

$

49,670

Finance receivables at fair value

 

 

463,320

 

 

457,296

Finance receivables at amortized cost, net

 

 

110

 

 

643

Other assets

 

 

64,170

 

 

72,230

Total assets

 

$

601,543

 

$

579,839

Liabilities and stockholders’ equity

 

 

 

 

Current liabilities

 

$

26,448

 

$

29,558

Other liabilities

 

 

40,086

 

 

42,183

Total debt

 

 

334,116

 

 

347,060

Warrant liabilities

 

 

6,864

 

 

1,888

Total liabilities

 

 

407,514

 

 

420,689

Total stockholders’ equity

 

 

194,029

 

 

159,150

Total liabilities and stockholders’ equity

 

$

601,543

 

$

579,839

Total cash and restricted cash increased by $24.3 million as of December 31, 2023 compared to December 31, 2022 driven by an increase in received payments relative to originations. Finance receivables at fair value increased by $6.0 million as of December 31, 2023 compared to December 31, 2022 due to strength in issuance volume and decrease in charge-offs throughout the second half of the year. Finance receivables at amortized cost, net decreased by $0.5 million as of December 31, 2023 compared to December 31, 2022 due to the continued rundown of OppFi Card and SalaryTap finance receivables. Other assets decreased by $8.1 million as of December 31, 2023 compared to December 31, 2022 mainly due to a decrease in property, equipment, and software of $3.7 million, a decrease in the operating lease right of use asset of $1.4 million, and a decrease in the deferred tax asset of $1.0 million.

Current liabilities decreased by $3.1 million as of December 31, 2023 compared to December 31, 2022 driven by a decrease in accounts payable of $1.9 million and a decrease in accrued expenses of $1.2 million. Other liabilities decreased by $2.1 million as of December 31, 2023 compared to December 31, 2022 driven by a decrease in the operating lease liability of $1.5 million and a decrease in the tax receivable agreement liability of $0.6 million. Total debt decreased by $12.9 million as of December 31, 2023 compared to December 31, 2022 driven by a decrease in utilization of revolving lines of credit of $12.0 million, paydown of the secured borrowing payable of $0.8 million, and a decrease in notes payable of $0.2 million. Warrant liabilities increased by $5.0 million due to the increase in the valuation of the warrants as of December 31, 2023 compared to December 31, 2022. Total stockholders’ equity increased by $34.9 million as of December 31, 2023 compared to December 31, 2022 driven by net income and stock-based compensation.

Financial Capacity and Capital Resources

As of December 31, 2023, OppFi had $31.8 million in unrestricted cash, an increase of $15.6 million from December 31, 2022. As of December 31, 2023, OppFi had an additional $192.3 million of unused debt capacity under its financing facilities for future availability, representing a 37% overall undrawn capacity, an increase from $136.8 million as of December 31, 2022. The increase in undrawn debt was driven primarily by the increase in capacity of the revolving credit agreement with affiliates of Atalaya Capital Management in July 2023. Including total financing commitments of $525.0 million, and cash on the balance sheet of $73.9 million, OppFi had approximately $598.9 million in funding capacity as of December 31, 2023.

Reconciliation of Non-GAAP Financial Measures

Comparison of the three and twelve months ended December 31, 2023 and 2022

(in thousands, except share and per share data)

 

Three Months Ended December 31,

 

Variance

(unaudited)

 

 

2023

 

 

 

2022

 

 

%

Net income (loss)

 

$

1,942

 

 

$

(5,199

)

 

137.4

%

Income tax expense (benefit)

 

 

1,034

 

 

 

(2,034

)

 

150.8

 

Debt issuance cost amortization

 

 

556

 

 

 

746

 

 

(25.5

)

Other addbacks and one-time expenses, net(a)

 

 

7,809

 

 

 

2,836

 

 

175.4

 

Sublease income

 

 

(80

)

 

 

(53

)

 

50.9

 

Adjusted EBT

 

 

11,261

 

 

 

(3,704

)

 

404.0

 

Less: pro forma taxes(b)

 

 

(2,378

)

 

 

914

 

 

(360.2

)

Adjusted net income (loss)

 

 

8,883

 

 

 

(2,790

)

 

418.4

 

Pro forma taxes(b)

 

 

2,378

 

 

 

(914

)

 

360.2

 

Depreciation and amortization

 

 

2,907

 

 

 

3,525

 

 

(17.5

)

Interest expense

 

 

11,515

 

 

 

9,994

 

 

15.2

 

Business (non-income) taxes

 

 

128

 

 

 

107

 

 

19.6

 

Adjusted EBITDA

 

$

25,811

 

 

$

9,922

 

 

160.1

%

 

 

 

 

 

 

 

Adjusted earnings (loss) per share

 

$

0.10

 

 

$

(0.19

)

 

 

Weighted average diluted shares outstanding(c)

 

 

85,721,167

 

 

 

14,563,168

 

 

 

 

 

 

 

 

 

 

(a) For the three months ended December 31, 2023, other addbacks and one-time expenses, net of $7.8 million included a $5.8 million expense related to the change in fair value of the warrant liabilities, $1.0 million in expenses related to stock-based compensation, $0.7 million in expenses related to corporate development, $0.2 million in expenses related to provision for credit losses on the OppFi Card finance receivables, and $0.1 million in expenses related to legal fees. For the three months ended December 31, 2022, other addbacks and one-time expenses, net of $2.8 million included a $(2.3) million addback due to the change in fair value of the warrant liabilities, a $3.6 million expense related to the impairment of OppFi Card finance receivables as a result of their reclassification as held for sale, $1.0 million in expenses related to stock-based compensation, a $0.5 million expense related to the impairment of the operating lease right of use asset, and $0.2 million in expenses related to severance and retention.

(b) Assumes the entire company is a C-Corp with a tax rate of 21.12% for the three months ended December 31, 2023 and a tax rate of 24.68% for the three months ended December 31, 2022, reflecting the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes, in order to allow for a comparison with other publicly traded companies.

(c) Shares of Class V common stock that are exchangeable into shares of Class A common stock as a result of OppFi's Up-C structure are excluded from the diluted shares calculation in any period in which OppFi reports a loss because the inclusion would be antidilutive.

(in thousands, except share and per share data)

 

Year Ended December 31,

 

Variance

(unaudited)

 

 

2023

 

 

 

2022

 

 

%

Net income

 

$

39,479

 

 

$

3,340

 

 

1082.0

%

Income tax expense (benefit)

 

 

2,331

 

 

 

(277

)

 

941.5

 

Debt issuance cost amortization

 

 

2,428

 

 

 

2,372

 

 

2.4

 

Other addbacks and one-time expenses, net(a)

 

 

12,790

 

 

 

1,180

 

 

983.9

 

Sublease income

 

 

(318

)

 

 

(53

)

 

500.0

 

Adjusted EBT

 

 

56,710

 

 

 

6,562

 

 

764.2

 

Less: pro forma taxes(b)

 

 

(13,361

)

 

 

(1,586

)

 

742.4

 

Adjusted net income

 

 

43,349

 

 

 

4,976

 

 

771.2

 

Pro forma taxes(b)

 

 

13,361

 

 

 

1,586

 

 

742.4

 

Depreciation and amortization

 

 

12,735

 

 

 

13,581

 

 

(6.2

)

Interest expense

 

 

44,322

 

 

 

32,789

 

 

35.2

 

Business (non-income) taxes

 

 

917

 

 

 

934

 

 

(1.8

)

Adjusted EBITDA

 

$

114,684

 

 

$

53,866

 

 

112.9

%

 

 

 

 

 

 

 

Adjusted earnings per share

 

$

0.51

 

 

$

0.06

 

 

 

Weighted average diluted shares outstanding

 

 

85,051,304

 

 

 

84,256,084

 

 

 

 

(a) For the year ended December 31, 2023, other addbacks and one-time expenses, net of $12.8 million included a $5.0 million expense related to the change in fair value of the warrant liabilities, $4.1 million in expenses related to provision for credit losses on the OppFi Card finance receivables, $4.1 million in expenses related to stock-based compensation, $1.5 million in expenses related to corporate development, $0.9 million in expenses related to severance and retention, $0.3 million in expenses related to legal fees, a $(3.0) million addback related to the reclassification of OppFi Card finance receivables from assets held for sale to assets held for investment at amortized cost, and a $(0.1) million addback related to partial forgiveness of the secured borrowing payable. For the year ended December 31, 2022, other addbacks and one-time expenses, net of $1.2 million included a $(9.4) million addback related to the change in fair value of the warrant liabilities, a $3.6 million expense related to the impairment of OppFi Card finance receivables as a result of their reclassification as held for sale, $3.4 million in expenses related to stock-based compensation, $3.0 million in expenses related to severance and retention, a $0.5 million expense related to the impairment of the operating lease right of use asset, and $0.1 million in expenses related to legal fees.

(b) Assumes the entire Company is a C-Corp with a tax rate of 23.56% for the year ended December 31, 2023 and a tax rate of 24.17% for the year ended December 31, 2022, reflecting the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes, in order to allow for a comparison with other publicly traded companies.

Adjusted Earnings Per Share

 

Three Months Ended December 31,

(unaudited)

2023

 

 

2022

Weighted average Class A common stock outstanding

18,087,627

 

 

14,563,168

Weighted average Class V voting stock outstanding

92,604,532

 

 

Elimination of earnouts at period end

(25,500,000

)

 

Dilutive impact of restricted stock units

450,286

 

 

Dilutive impact of performance stock units

78,722

 

 

Weighted average diluted shares outstanding(a)

85,721,167

 

 

14,563,168

(in thousands, except share and per share data)

Three Months Ended December 31, 2023

 

Three Months Ended December 31, 2022

(unaudited)

$

 

Per Share

 

$

 

Per Share

Weighted average diluted shares outstanding(a)

 

 

 

85,721,167

 

 

 

 

 

14,563,168

 

Net income (loss)

$

1,942

 

 

$

0.02

 

 

$

(5,199

)

 

$

(0.36

)

Income tax expense (benefit)

 

1,034

 

 

 

0.01

 

 

 

(2,034

)

 

 

(0.14

)

Debt issuance cost amortization

 

556

 

 

 

0.01

 

 

 

746

 

 

 

0.05

 

Other addbacks and one-time expenses, net

 

7,809

 

 

 

0.09

 

 

 

2,836

 

 

 

0.19

 

Sublease income

 

(80

)

 

 

 

 

 

(53

)

 

 

 

Adjusted EBT

 

11,261

 

 

 

0.13

 

 

 

(3,704

)

 

 

(0.25

)

Less: pro forma taxes

 

(2,378

)

 

 

(0.03

)

 

 

914

 

 

 

0.06

 

Adjusted net income (loss)

 

8,883

 

 

$

0.10

 

 

 

(2,790

)

 

$

(0.19

)

(a) Shares of Class V common stock that are exchangeable into shares of Class A common stock as a result of OppFi's Up-C structure are excluded from the diluted shares calculation in any period in which OppFi reports a loss because the inclusion would be antidilutive.

 

Year Ended December 31,

(unaudited)

2023

 

 

2022

 

Weighted average Class A common stock outstanding

16,391,199

 

 

13,913,626

 

Weighted average Class V voting stock outstanding

93,857,926

 

 

95,724,487

 

Elimination of earnouts at period end

(25,500,000

)

 

(25,500,000

)

Dilutive impact of restricted stock units

261,595

 

 

105,928

 

Dilutive impact of performance stock units

40,584

 

 

9,492

 

Dilutive impact of employee stock purchase plan

 

 

2,551

 

Weighted average diluted shares outstanding

85,051,304

 

 

84,256,084

 

(in thousands, except share and per share data)

Year Ended December 31, 2023

 

Year Ended December 31, 2022

(unaudited)

$

 

Per Share

 

$

 

Per Share

Weighted average diluted shares outstanding

 

 

 

85,051,304

 

 

 

 

 

84,256,084

 

Net income

$

39,479

 

 

$

0.46

 

 

$

3,340

 

 

$

0.04

 

Income tax expense (benefit)

 

2,331

 

 

 

0.03

 

 

 

(277

)

 

 

 

Debt issuance cost amortization

 

2,428

 

 

 

0.03

 

 

 

2,372

 

 

 

0.03

 

Other addbacks and one-time expenses, net

 

12,790

 

 

 

0.15

 

 

 

1,180

 

 

 

0.01

 

Sublease income

 

(318

)

 

 

 

 

 

(53

)

 

 

 

Adjusted EBT

 

56,710

 

 

 

0.67

 

 

 

6,562

 

 

 

0.08

 

Less: pro forma taxes

 

(13,361

)

 

 

(0.16

)

 

 

(1,586

)

 

 

(0.02

)

Adjusted net income

 

43,349

 

 

$

0.51

 

 

 

4,976

 

 

$

0.06

 

 

Investor Relations: investors@oppfi.com Media Relations: media@oppfi.com

Source: OppFi

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