The net loss for the second quarter includes income from both continuing and discontinued operations. Results for the second quarter of 2016 included no income from discontinued operations, while results from the prior-year period included $53,089 in income from discontinued operations as a result of the 2014 sale of FlexShopper's Anchor Funding Services business.
The second quarter was also marked by a $22 million equity capital raise from a global institutional investor to fuel FlexShopper's continued growth. FlexShopper began expanding its marketing mix and reach at the end of the second quarter and into the current quarter to continue to grow awareness and adoption by retailers and consumers alike of its online lease-to-own platform.
Results for Six Months Ended June 30, 2016 vs. Six Months Ended June 30, 2015:
- Total revenues increased 157.9% to $20.9 million
- Lease originations increased from 10,653 to 20,147 or 89.1%
- Net loss increased to $6.3 million, or $(0.12) per share, compared to a net loss of $3.2 million, or $(0.07) per share
Income for the six months ended June 30, 2016, included no income from discontinued operations, compared to $127,789 in income from discontinued operations for the same period of 2015 as a result of the 2014 sale of FlexShopper's Anchor Funding Services business.
"We are pleased with the significant year-over-year growth in our ecommerce business," said Brad Bernstein, FlexShopper CEO. "With the closing of the recent $22 million equity investment in our business, we are well positioned to accelerate the execution of our strategy and grow participation in all of our channels during the second half of the year. We look forward to expanding our LTO partnerships, adding to our online product offerings and continuing strong growth in lease originations."
FlexShopper's rapid growth and leadership in bringing online the traditional rent-to-own store-based model was recognized during the second quarter 2016 when FlexShopper was named by Internet Retailer as the fastest growing consumer electronics e-retailer in the U.S. for 2015.
"Our site traffic and lease applications continue to achieve record growth thanks to our integrated technology backbone serving retailers and consumers," Bernstein added. "At the same time, we have maintained our underwriting discipline, as our vintages of leases continue to perform as expected."
FlexShopper, LLC, a wholly owned subsidiary of FlexShopper, Inc. (FPAY), is a financial and technology company that provides brand name electronics, home furnishings and other durable goods to consumers on a lease-to-own (LTO) basis through its ecommerce marketplace (www.FlexShopper.com) and patent pending LTO payment method. FlexShopper also provides LTO technology platforms to retailers and e-retailers to facilitate transactions with consumers that want to acquire their products, but do not have sufficient cash or credit. FlexShopper approves consumers utilizing its proprietary consumer screening model, collects from consumers under an LTO contract and funds the LTO transactions by paying merchants for the goods. Follow us on Facebook or Twitter @FlexShopper.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995. Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. 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 those 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 most recently filed Annual Report on Form 10-K and our subsequently filed Quarterly Reports on Form 10-Q. We urge you to consider those risks and uncertainties in evaluating our forward-looking statements. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Except as otherwise required by the federal securities laws, we disclaim any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
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