FlexShopper, Inc.

Greetings, ladies and gentlemen, and welcome to Flex Shopper LLC 2022 Second Quarter Financial Results Conference Call. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the call, please press star then zero on your telephone keypad. As a reminder, this conference is being recorded. I would now turn the conference over to your host, Mr. Carlos Sanchez, Investor Relations.

Thank you, and good morning. Welcome to Flex Shopper's second quarter 2022 earnings result conference call. With me today are Rich House, Chief Executive Officer, Russ Heiser, Chief Financial Officer, and John Davis, Chief Operating Officer. We issued our earnings release last night and corresponding investor presentation this morning, and we will be referencing these during the call. Both can be found in our investor relations section of our website. We will be available for Q&A following today's prepared remarks. Before we begin, I would like to remind everyone that this call will contain forward-looking statements regarding future events and our financial performance, including statements regarding our market opportunity, the impact of our growth initiatives, and our future financial performance. These should be considered in conjunction with cautionary statements containing our earnings release and the company's most recent periodic SEC reports, including our quarterly report form 10Q for the second quarter ended June 30th. These statements reflect management's current beliefs, assumptions, and expectations and are subject to a number of factors that may cause actual results to differ materially from those statements. Except as required by law, we undertake no obligation to publicly update or revise any of these statements, whether as a result of any new information, future events, or otherwise. During today's discussion of our financial performance, we will provide certain financial information that constitutes non-GAAP financial measures under SEC rules. These include measures such as adjusted EBITDA and net income, adjusted net income. These non-GAAP financial measures should not be considered replacements and should be read together with our GAAP results, reconciliation to GAAP measurements, and certain additional information are also included in today's earnings release, which is available on our investor relations section of our website. This call is being recorded and a webcast will be available for replay on the investor relations section of our website. I will now turn the call over to Rich.

Thanks, Carlos. Good morning, everyone, and thank you for joining us for the Flex Shopper second quarter 2022 earnings call. This morning, I'll be joined by the CFO, Russ Heiser, and the Chief Operating Officer, John Davis. In today's call, we're going to stick with the format we used last quarter. I will provide an overview of our general results and strategies. Russ will cover the financial results in more detail, and John will provide some specific insights regarding how we are progressing on the execution of our strategies in both our leasing and lending endeavors. I will end with the prepared remarks with a brief summary of our future direction, and we will have time for any questions you may have prior to ending the call. We are pleased to report second quarter EBITDA of $6.4 million and net income of $14.4 million. Russ will walk you through a breakdown of these results in more detail shortly. I would like to spend some time focusing on how FlexShopper is dealing with the current macroeconomic environment and how we continue to provide profitable growth in this environment. I'm sure everyone on this call is aware of the US economy. has moved into a slower growth phase over the last nine months. And unlike previous slower growth phases in the past 40 years, this slower growth has been accompanied by significant inflationary pressures. The combination of slower growth, inflationary pressure, and a lack of continued government stimulus seems to have taken a toll on the non-prime consumer. This is an unusual time, in that there is not an employment problem, but the amount of money our consumers bring home from their employment is probably increasingly being spent on necessary expenditures, reducing the amount of money available to pay bills that are not required for everyday living. It is quite possible some of these consumers made purchases using leases or loans when they were benefiting from government stimulus programs and did not anticipate the future inflationary environment. It is probably impossible to unwind exactly what has happened regarding the non-prime segment of the consumer population over the past several quarters. However, it is obvious there has been an impact on their payment behavior. This has resulted in both Flex Shopper and our publicly traded competitors announcing increases in bad debt allowances over the last two quarters. Last quarter, we told you we had tightened our underwriting standards in order to deal with a declining economic environment. In the second quarter, we continued to tighten further to ensure we were exercising the appropriate amount of caution in an uncertain economic environment. The important part of the story we believe separates FlexShopper from others is we can continue growing even while we exercise the appropriate discipline regarding credit risk. I will now turn the call over to Russ for a review of the financial highlights and an overview of a new retail strategic partnership.