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Open Lending Reports First Quarter 2024 Financial Results

AUSTIN, Texas, May 07, 2024 (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 first quarter of 2024.

"I am pleased to report that in the first quarter of 2024, we exceeded the high end of our guidance for both certified loans and revenue and exceeded the mid-point for Adjusted EBITDA," said Chuck Jehl, Chief Financial Officer and Interim Chief Executive Officer. "We are encouraged that market conditions appear to be improving. We remain focused on optimizing our core credit union and captive finance company businesses, while expanding our penetration into bank and finance companies."

Three Months Ended March 31, 2024 Highlights

  • The Company facilitated 28,189 certified loans during the first quarter of 2024, compared to 32,408 certified loans in the first quarter of 2023.
  • Total revenue was $30.7 million during the first quarter of 2024, compared to $38.4 million in the first quarter of 2023. The first quarter of 2024 was negatively impacted by a $1.1 million reduction in estimated future profit share revenues related to business in historic vintages as compared to a $0.7 million increase in the first quarter of 2023.
  • Gross profit was $25.0 million during the first quarter of 2024, compared to $32.9 million in the first quarter of 2023.
  • Net income was $5.1 million during the first quarter of 2024, compared to $12.5 million in the first quarter of 2023.
  • Adjusted EBITDA was $12.5 million during the first quarter of 2024, compared to $21.2 million in the first quarter of 2023.

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."

Second Quarter 2024 Outlook

Based on trends into 2024, the Company is issuing its second quarter 2024 guidance ranges as follows:

Total Certified Loans 27,000 - 30,000
Total Revenue $29 - $33 million
Adjusted EBITDA $10 - $14 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 first quarter 2024 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) 825-9789, or for international callers (412) 317-5180; the conference ID is 10187879. 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 "Second Quarter 2024 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; 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, 2023. 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 it currently believes 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 its 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.com

OPEN LENDING CORPORATION
Consolidated Balance Sheets
(Unaudited, in thousands, except share data)
       
  March 31, 2024   December 31, 2023
Assets      
Current assets      
Cash and cash equivalents $ 246,972     $ 240,206  
Restricted cash   8,103       6,463  
Accounts receivable, net   5,751       4,616  
Current contract assets, net   21,346       28,704  
Income tax receivable   5,631       7,035  
Other current assets   2,665       2,852  
Total current assets   290,468       289,876  
Fixed assets, net   4,131       3,913  
Operating lease right-of-use asset, net   3,828       3,990  
Contract assets   10,582       610  
Deferred tax asset, net   67,959       70,113  
Other assets   3,630       5,535  
Total assets $ 380,598     $ 374,037  
Liabilities and stockholders' equity      
Current liabilities      
Accounts payable $ 440     $ 375  
Accrued expenses   7,895       8,131  
Current portion of debt   4,688       4,688  
Third-party claims administration liability   8,126       6,464  
Other current liabilities   956       932  
Total current liabilities   22,105       20,590  
Long-term debt, net of deferred financing costs   138,510       139,357  
Operating lease liabilities   3,279       3,450  
Other liabilities   5,166      
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The End of the Golden AgeAnti-Semitism on the right and the left threatens to end an unprecedented period of safety and prosperity for Jewish Americans—and demolish the liberal order they helped establish, Franklin Foer wrote in the April 2024 issue.Franklin Foer’s article on the end of the Golden Age for American Jews makes an excellent and painful connection between the rise of anti-Semitism and the decline of democratic institutions throughout history. I was a child in Communist Romania in 1973 at the outbreak of the Yom Kippur War. Some of my teachers made my life miserable in school simply because I was Jewish. My parents had to bribe them with American cigarettes to stop them from tormenting me. Three years later, my family and I defected to the United States. The U.S. was known around the world for its democratic institutions, and we wanted to get away from a country where anti-Semitism ran rampant.No one born here can imagine what it was like to be free, to be Jewish and dare to admit it. But that was America in the 1970s and ’80s. Today’s America frightens me: I’ve lived in an authoritarian state before; I understand viscerally what’s at stake in this year’s election. For the first time in 48 years, I think twice before telling people I’m Jewish.Monica FriedlanderCambria, Calif.I am a 96-year-old Holocaust survivor. I was born in Berlin in 1928 and observed the rise of anti-Semitism in Germany. There is a world of difference between those days and the United States today. In Germany, anti-Semitism was sanctioned, even encouraged, by the authorities. Police officers stood by laughing when boys beat us on our way to school. The government passed laws forbidding us from owning radios, newspapers, telephones, even pets. The world knows how that ended: I was liberated from Bergen-Belsen on April 15, 1945. I think Franklin Foer’s article is a bit over the top.Walter L. LachmanLaguna Niguel, Calif.Although an interesting review of 20th-century Jewish entertainers and intellectuals, Franklin Foer’s assessment ignores the street reality.I was born and raised during the Franklin D. Roosevelt years. Growing up, I was given a bloody nose by other kids more than once on my way home from school. They shouted anti-Semitic slurs and attacked me for “killing their God.” When I served in the military, my roommate asked whether I had horns, and if it “had hurt when they took them off.” When I applied for a job at a prestigious law firm, I was told, “We do not hire your kind.”I went on to enjoy a successful career. But the underlying prejudice has always been present. The fact that we Jews have been entertaining and creative does nothing to eliminate the basic prejudice against us as “the other.”Benjamin LevineRoseland, N.J.The night before I read Franklin Foer’s article, a stranger tore my mezuzah off my doorframe. I was upset—but so was my non-Jewish roommate. In that, he was part of a broader American tradition: At the founding of our country, George Washington promised the Jews of Rhode Island, “To bigotry no sanction, to persecution no assistance.”The Jewish American Golden Age predates the 20th century, and has outlasted it. Not only has America been the best place in the diaspora to be a Jew, but the scale of Jewish participation and inclusion is larger than many realize. The highest-ranking American armor officer to die in combat was the legendary Maurice Rose—a Jewish major general who died fighting the Nazis in Germany. Foer quotes Thomas Friedman saying that the Six-Day War made American Jews realize they could be tank commanders—but Jews have been tank commanders as long as America has had tanks.In Columbus, Georgia, where I live, shortly after the October 7 attacks, the mayor and city-council members attended my synagogue. People from all over the country reached out to express their sympathy and support. A friend stationed in Syria checked in after Iran launched missiles toward Israel, concerned about my Israeli family and how I was dealing with American anti-Semitism. America’s continuing warm welcome isn’t just anecdotal: The Pew Research Center recently found that Jews are viewed more positively than any other U.S. religious group.Anti-Semitism may be on the rise, but it is and remains un-American. My great-great-grandfather, a Jewish refugee, arrived in New York on the Fourth of July. According to family lore, he saw the fireworks and thought they were for him. In a way, they were. This July, I look forward to celebrating the Golden Age’s 248th anniversary.Jacob FosterColumbus, Ga.I was disappointed reading “The End of the Golden Age.” I think the Golden Age is now, as so many American Jews rise up to say “Not in our name.” We are recognizing the difference between anti-Semitism and anti-Zionism. It’s time for everyone to recognize it too. Criticism of Israel’s actions in Gaza is not anti-Semitism. American Jews and Israeli Jews will be safe when we can recognize the resilience and survival of both Palestinians and Jews and see how our struggles are interconnected.R. Toran AilishevaOakland, Calif.Franklin Foer interprets a survey—“nearly one in five non-Jewish students said they ‘wouldn’t want to be friends with someone who supports the existence of Israel as a Jewish state’ ”—to mean that they were saying they wouldn’t be friends with most Jews. I would challenge this interpretation.As a Columbia graduate, and as someone who can actually read the Yiddish on The Atlantic’s cover, I do not question the Zionist dream of a haven for Jews. But I question the need for a predominantly religious state, which I fear will inevitably lead to a theocracy, intolerant even of Jews deemed insufficiently Orthodox. Israel is headed in that direction.Elliott B. UrdangProvidence, R.I.We were surprised and dismayed that The Atlantic would publish Franklin Foer’s article about the rise of anti-Semitism without any accompanying articles discussing the concurrent rise in anti-Palestinian racism. Students who protest the brutal war crimes committed in Gaza or advocate for the freedom and dignity of the Palestinian people are being silenced and persecuted. We hope The Atlantic will publish stories that highlight efforts seeking peace and justice for all. Right now, we need solutions. We need voices supportive of our shared humanity, not inflammatory rhetoric that will lead to further polarization and alienation.Samar SalmanAnn Arbor, Mich.Christina KappazEvanston, Ill.Franklin Foer replies:A writer’s deeply ingrained instinct is to want their stories to prove prophetic. In this instance, I desperately hope that I will be proved wrong. Sadly, in the aftermath of publishing this article, I have heard too many stories like Jacob Foster’s, of mezuzahs ripped from doors in the night. One of the most ubiquitous critiques of my story, echoed in R. Toran Ailisheva’s letter, is that my argument equates anti-Zionism with anti-Semitism. Many mainstream Jewish groups take that stance, but it is not my contention. I explicitly stated that there are strains of anti-Zionism that paint a vision of life in a binational state, where Palestinians and Jews peacefully coexist. That vision strikes me as hopelessly quixotic, but it isn’t anti-Semitic. Unfortunately, criticisms of Zionism are rarely so idealistic. They are usually cast in ugly terms, depicting a dangerous Jewish cabal guilty of dual loyalties, betraying the hallmarks of classical anti-Semitism.Behind the CoverIn this month’s cover story, “Democracy Is Losing the Propaganda War,” Anne Applebaum examines how autocrats in China, Russia, and other places have sought to discredit liberal democracy—and how they’ve found unlikely allies on the American far right. Our cover draws inspiration from constructivist propaganda artists such as Alexander Rodchenko and Gustav Klutsis. The angled imagery and ascending lines evoke the style of a Soviet propaganda poster, updated with liberalism’s new rivals.— Paul Spella, Senior Art DirectorThis article appears in the June 2024 print edition with the headline “The Commons.”
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