FlexShopper Enhances Board with Former Governor Patrick McCrory

FlexShopper Strengthens Leadership with New Board Member

Boca Raton, Florida - FlexShopper Inc (NASDAQ: FPAY), a prominent player in the lease-to-own retail and payment solutions space, has announced an exciting development in its leadership. The company has appointed Patrick McCrory as an independent member of its Board of Directors. With a market capitalization of $35 million, FlexShopper is on a promising growth trajectory, recently witnessing its stock price rise by over 40% in the past months.

Patrick McCrory is well-known for his tenure as the former governor of North Carolina and as the mayor of Charlotte. His public service career has spanned several years and is marked by substantial achievements. Serving as governor from 2013 to 2017 and mayor from 1995 to 2009, McCrory is noted for his efforts in enhancing community frameworks. His experience on the U.S. Homeland Security Advisory Council and leadership roles with the U.S. Conference of Mayors have further enriched his profile.

Expertise That Aligns with FlexShopper's Vision

McCrory's background in business is notable, having held senior executive positions at Duke Energy Corporation (NYSE: DUK) and serving on the boards of Kewaunee Scientific Corporation and LendingTree, Inc. His addition to FlexShopper's board is anticipated to offer crucial strategic guidance, helping the company pursue its growth objectives and maximize shareholder value.

Howard S. Dvorkin, the Chairman of FlexShopper, expressed his excitement regarding McCrory's appointment. He highlighted the valuable contributions McCrory is expected to make, leveraging his extensive leadership experience to enhance the board’s operations.

T. Scott King's Departure and Future Plans

As part of this leadership transition, FlexShopper also announced the retirement of T. Scott King from the Board effective January 20. Russ Heiser, FlexShopper's CEO, acknowledged King’s substantial decade-long service and wished him well in his future endeavors.

Headquartered in Boca Raton, Florida, FlexShopper positions itself as a financial technology innovator, providing lease-to-own and lending options to often underserved consumer segments. The company actively offers a variety of payment solutions through its extensive online marketplace and various partnerships with retail businesses.

FlexShopper's Strategic Market Positioning

The reshuffle in the board comes at a critical time for FlexShopper as it maneuvers through the competitive landscape of financial technology and consumer leasing services. Stakeholders are keenly observing these strategic developments, particularly the recent elevation of market performance indicators.

Current insights reveal that the company has maintained strong liquidity, indicated by a current ratio of 7.98. However, analysts foresee challenges in achieving profitability within the coming year. Despite this, FlexShopper continues to engage investors with its compelling growth story.

Financial Performance Highlights

Recent financial performance has been noteworthy for FlexShopper, demonstrating a significant upward trend during the third quarter. H.C. Wainwright has maintained a Buy rating on the company, citing a remarkable 23% increase in total revenue, which reached $39 million. The adjusted EBITDA also rose dramatically, achieving an unprecedented 45% increase and totaling over $12 million.

Additionally, the company reported a 15% increase in gross leasing revenue and a 25% rise in net lease revenue over the initial two months of the fourth quarter. The positive results can be attributed to effective strategies in both business-to-business (B2B) and business-to-consumer (B2C) channels, as well as intentions to expand B2B offerings significantly in the coming year.

Capital Raising Initiatives

In line with its ambitious growth plans, FlexShopper has launched a rights offering aimed at raising capital. This undertaking demonstrates the firm’s commitment to reducing debt and enhancing shareholder value through strategic financial management.

Moreover, changes within the board of directors were also announced, including Sean Hinze’s resignation and Denis Echtchenko’s introduction to the board. FlexShopper has also updated its employment agreement with CEO H. Russell Heiser Jr., incorporating a salary increase and modifying his performance bonus structure. These recent actions reflect FlexShopper's strong operational performance and the forward momentum of its strategic initiatives.

Frequently Asked Questions

What is the significance of McCrory's appointment to FlexShopper?

McCrory's experience in public service and business is expected to significantly enhance FlexShopper's strategic direction and board effectiveness.

How has FlexShopper performed financially recently?

FlexShopper reported a 23% increase in total revenue during its last quarter, along with substantial growth in EBITDA and leasing revenues.

What are FlexShopper's current liquidity metrics?

The company has reported a current ratio of 7.98, indicating strong liquidity despite challenges in profitability forecasts for the year.

What initiatives is FlexShopper pursuing to enhance shareholder value?

FlexShopper launched a rights offering to raise capital, alongside plans for expanding its B2B market presence and reducing debt.

Who are the notable members of FlexShopper's board?

Notable board members include Patrick McCrory, who brings a wealth of leadership experience, and Howard S. Dvorkin as Chairman.

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