FlexShopper, Inc. (NASDAQ:FPAY) Q1 2019 Earnings Conference Call - Final Transcript

May 08, 2019 • 10:00 am ET


FlexShopper, Inc. (NASDAQ:FPAY) Q1 2019 Earnings Conference Call - Final Transcript


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Greetings, welcome to the FlexShopper First Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) Please note, this conference is being recorded.

I will now turn the conference over to your host, Jeremy Hellman of The Equity Group. Mr. Hellman, you may begin.

Jeremy Hellman

Thank you, operator. I would like to remind everyone that we have posted an updated investor presentation within IR section of the Company website, www.flexshopper.com. This presentation includes forward-looking statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

Forward-looking statements reflect our current views with respect to future events and involve inherent risks and uncertainties, which could cause actual results to differ materially from our historical experience and present expectations or projections as a result of various factors, including those risks and uncertainties described in the risk factors and the management's discussion and analysis of financial condition and results of operations sections in the Company's most recently filed annual report on Form 10-K and subsequently filed quarterly reports on Form 10-Q.

One can find many but not all of these statements by looking for terms such as belief, expect, hope, project, may, will, should, would, could, seek, intend, plan, estimate, anticipate, and similar terms. All statements other than statements of historical facts including -- during this conference call, including statements regarding our strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. We urge you to consider those risks and uncertainties in evaluating our forward-looking statements.

We caution listeners not to place undue reliance upon any such forward-looking statements which represent our estimates and assumptions only as of the date hereof. Except as required by law, we undertake no obligation to update any forward-looking statement, whether in written or oral that may be made from time to time, whether as a result of new information, future developments or otherwise. We anticipate that subsequent events and developments will cause our views to change.

With that, I would like to turn the call over to FlexShopper's CEO, Brad Bernstein. Go ahead, Brad.

Brad Bernstein

Thank you, Jeremy, and welcome, everyone, to our 2019 first quarter earnings call. I'll start by providing several business highlights from the first quarter of 2019; then I'll hand the call off to our CFO, Russ Heiser, who will discuss our financial results and balance sheet in more detail; and then I'll return for some last comments before we open the line up to your questions.

First and most importantly, I am pleased to report our first quarter of net income at $504,000 before preferred dividends and solid adjusted EBITDA of $2.3 million. Over the last few earnings calls, we've been alluding to an inflection point in our business of reaching a critical mass of annual lease originations. When you combine steady lease portfolio returns with continued lease origination growth, continued repeat business, and other channels kicking in, such as