NEW YORK, Nov. 6, 2017 /PRNewswire/ -- OnDeck® (NYSE:ONDK),
the leader in online lending for small business, today announced
third quarter 2017 financial results and affirmed that the Company
is on track to achieve GAAP profitability in the fourth quarter of
2017.
"OnDeck's third quarter performance demonstrated tangible
progress on our strategic priorities and goal of achieving GAAP
profitability," said Noah Breslow, OnDeck's chief executive
officer. "Originations grew sequentially by 14%, operating
expense was at its lowest level in more than two years, and credit
trends continued to strengthen. Reflecting these initiatives,
our bottom line performance improved over $12 million in the third quarter compared to
the prior year period."
Breslow added, "We achieved these solid results despite the
negative impact of Hurricanes Harvey and Irma. Absent these
weather events, our Provision Rate and 15+ Day Delinquency Ratio
would have improved sequentially and our GAAP net loss would have
been closer to breakeven for the period. Looking ahead, our
business is well-positioned to build on our strong customer demand
and disciplined operating performance. As evidenced by our
recent partnership announcement with VISA and Ingo Money, we remain committed to innovation
that better serves our customers and drives responsible
originations growth. We remain on track to achieve GAAP
profitability in the fourth quarter and look forward to profitable
growth in 2018."
Review of Financial Results for the Third Quarter of
2017
Originations grew to $531
million in the third quarter of 2017, up 14% from the prior
quarter. Each of OnDeck's three distribution channels grew
sequentially, driven primarily by increases in repeat customer
volume. Credit quality of new originations, as measured by
both OnDeck Score and personal credit scores, remained near
historic highs.
Gross revenue increased to $83.7
million, up 8% year-over-year and driven primarily by higher
interest income. Effective Interest Yield was 33.4%, up from
32.8% in the prior year period, primarily reflecting the increases
in average loan pricing that occurred over the last twelve
months. The weighted average APR for loans originated in the
quarter was 43.8%.
Gain on sale was $0.1
million. Loans sold or designated as held for sale
through OnDeck Marketplace represented 1.3% of term loan
originations. Other Revenue was $3.4
million, up $0.7 million from
the prior quarter, primarily reflecting increased revenues from the
Company's OnDeck-as-a-Service (ODaaS) business. During the
quarter, OnDeck and JPMorgan Chase extended their collaboration for
up to four years to provide the underlying technology supporting
Chase's online lending solution to small business customers.
Net revenue was $32.8 million
during the third quarter of 2017, up 1% versus the prior year
period.
Provision for loan losses was $39.6
million and the Provision Rate was 7.5%. A substantial
majority of the quarter's provision for loan losses related to new
originations in the period. Approximately $3.5 million of the third quarter's provision and
65 basis points of the Provision Rate related to anticipated losses
from Hurricanes Harvey and Irma.
At September 30, 2017, the 15+ Day
Delinquency Ratio was 7.5%, up from 7.2% at June 30, 2017. Broken out separately, the 15+ Day
Delinquency Ratio at September 30,
2017 for the FEMA-designated "individual assistance"
hurricane disaster areas was 14.5%, and for all areas other than
those disaster areas it was 6.6%. At June 30, 2017, the 15+ Day Delinquency Ratio for
those disaster areas was 7.3% and for all areas other than those
disaster areas it was 7.2%. The sequential decrease in
delinquency observed in the non-disaster areas resulted primarily
from improved credit performance of recent originations and better
collections execution. The Net Charge-off rate in the third
quarter was 16.9%, down from 18.5% in the second quarter of
2017.
The Cost of Funds Rate was 6.4% in the third quarter of
2017.
Operating expense was $37.3
million during the third quarter of 2017. Operating expense
as a percent of revenue improved to 45% in the quarter, down from
64% in the prior year period. Operating expense was favorably
impacted by continued execution of the $45
million cost rationalization plan primarily consisting of
lower personnel expense and more efficient marketing spend.
GAAP net loss attributable to On Deck Capital, Inc. common
stockholders was $4.1 million, or
$0.06 per basic and diluted share,
for the quarter, which compares to $16.6
million, or $0.23 per basic
and diluted share, in the prior year period.
Adjusted EBITDA* was $1 million
for the quarter, compared to negative $10.8
million in the prior year period.
Unpaid Principal Balance was $941
million at the end of the third quarter of 2017, up 6% over
the prior year period. Balances were 1% lower than the end of
the second quarter of 2017 due to OnDeck's earlier strategic
decision to tighten credit management.
Total Funding Debt at the end of the third quarter of 2017 was
$703 million, up 8% over the prior
year period and down 2% sequentially, primarily reflecting the
changes in Unpaid Principal Balance.
Cash and cash equivalents were $64
million at the end of the quarter.
Guidance for Full Year 2017
OnDeck reiterated the
following guidance for the full year ending December 31, 2017:
- Gross revenue between $342 million and
$352 million.
- Adjusted EBITDA between $5 million and
$15 million.
OnDeck also noted that it may be able to sublease portions of
its office space by year end or in the first half of 2018, which
would produce multiyear savings but would likely require cash or
non-cash charges or both in the quarter the transaction(s) are
booked. These potential charges are not included in the
company's guidance or forecast of GAAP profitability in the fourth
quarter of 2017.
Conference Call
OnDeck will host a conference call to
discuss third quarter 2017 financial results on November 6, 2017 at 8:00
AM ET. Hosting the call will be Noah
Breslow, Chief Executive Officer, and Howard Katzenberg, Chief Financial Officer. The
conference call can be accessed toll free by dialing (844) 579-6824
for calls within the U.S., or by dialing (763) 488-9145 for
international calls. The Conference ID is 6896379. A live webcast
of the call will also be available at https://investors.ondeck.com
under the Press & Events menu.
About OnDeck
OnDeck (NYSE: ONDK) is the leader in
online small business lending. Since 2007, the company has powered
Main Street's growth through advanced lending technology and a
constant dedication to customer service. OnDeck's proprietary
credit scoring system - the OnDeck Score® - leverages advanced
analytics, enabling OnDeck to make real-time lending decisions and
deliver capital to small businesses in as little as 24 hours.
OnDeck offers business owners a complete financing solution,
including the online lending industry's widest range of term loans
and lines of credit. To date, the company has deployed over
$7 billion to more than 70,000
customers in 700 different industries across the United States, Canada and Australia. OnDeck has an A+ rating with the
Better Business Bureau and operates the educational small business
financing website BusinessLoans.com. For more information, please
visit www.ondeck.com.
*About Non-GAAP Financial Measures
This press release
and its attachments include Adjusted EBITDA, Adjusted Net Income
(Loss), Adjusted Expense Ratio and Adjusted Operating Yield all of
which exclude stock-based compensation, as well as Net Interest
Margin and Net Interest Margin After Credit Losses, all of which
are financial measures not calculated or presented in accordance
with United States generally
accepted accounting principles, or GAAP. We believe these
non-GAAP measures provide useful supplemental information for
period-to-period comparisons of our business and can assist
investors and others in understanding and evaluating our operating
results. However, these non-GAAP measures should not be
considered in isolation or as an alternative to any measures of
financial performance calculated and presented in accordance with
GAAP. Other companies may calculate these or similarly titled
non-GAAP measures differently than we do. See "Non-GAAP
Reconciliation" later in this press release for a description of
these non-GAAP measures and a reconciliation to the most directly
comparable financial measures prepared in accordance with GAAP.
Safe Harbor Statement
This press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 and other legal authority.
Forward-looking statements can be identified by words such as
"will," "targets," "expects," "intends, "may," "allows,"
"continues," "believes," "anticipates," "estimates" or similar
expressions. These include statements regarding guidance on gross
revenue and Adjusted EBITDA for the full year 2017, expected
operating expense levels for the fourth quarter of 2017 and our
plan and the timing for achieving positive Adjusted EBITDA and GAAP
profitability in the fourth quarter of 2017 and in 2018.
Forward-looking statements are neither historical facts nor
assurances of future performance. They are based only on our
current beliefs, expectations and assumptions regarding the future
of our business, anticipated events and trends, the economy and
other future conditions. As such, they are subject to inherent
uncertainties, risks and changes in circumstances that are
difficult to predict and in many cases outside our control.
Therefore, you should not rely on any of these forward-looking
statements. Our expected results may not be achieved, and
actual results may differ materially from our expectations.
Important factors that could cause or contribute to actual results
to differing from our forward-looking statements include risks
relating to: our ability to attract potential customers to our
platform; the degree to which potential customers apply for, are
approved for and actually borrow from us; our future financial
performance, including our expectations regarding our revenue, cost
of revenue, expectations of future losses, net profit or net
margin, operating expenses, ability to generate cash flow, and
ability to achieve, and maintain, future GAAP profitability; our
liquidity and working capital requirements, including the
availability and pricing of debt facilities, securitizations and
OnDeck Marketplace sales to fund our existing operations and
planned growth, and the consequences of mismatches in the timing or
amounts of resources available to fund additional loans or draws on
lines of credit; the effect on our business of originating loans
without third-party funding sources; the impact of increased
utilization of cash to fund originations; the effect on our
business of utilizing cash for voluntary loan purchases from third
parties; our ability to hire and retain necessary qualified
employees, particularly following our workforce reductions
announced in February and May 2017;
that the full impact of Hurricane Harvey and Hurricane Irene on our
business and our customers is unknown and could be worse than we
currently expect, and may reduce demand for our loans or cause our
customers to suffer significant losses and/or incur significant
disruption in their respective operations, which may affect their
ability to repay their loans; anticipated trends, growth rates and
challenges in our business and in the markets in which we operate;
the ability of our customers to repay loans; changes in product
distribution channel mix; our ability to anticipate market needs
and develop new and enhanced products and services to meet those
needs; interest rates and origination fees on loans; maintaining
and expanding our customer base; the impact of increased
competition in our industry and innovation by our competitors; our
anticipated growth and growth strategies, including through the
possible introduction of new products and the possible expansion in
existing or new international markets, and our ability to
effectively manage that growth and our expenses; our ability to
sell our products and expand; our reputation and possible adverse
publicity about us or our industry; the availability and cost of
our funding, including the availability and pricing of possible
warehouse financing and securitization and OnDeck
Marketplace transactions; our failure to anticipate or adapt
to future changes in our industry; the impact of any failure of our
solutions; our reliance on our third-party service providers; the
evolution of technology affecting our products, services and
markets; our compliance with applicable local, state and federal
laws, rules and regulations and their application and
interpretation, whether existing, modified or new; our ability to
adequately protect our intellectual property; the effect of
litigation or other disputes to which we are or may be a party; the
increased expenses and administrative workload associated with
being a public company; failure to maintain an effective system of
internal controls necessary to accurately report our financial
results and prevent fraud; the estimates and estimate methodologies
used in preparing our consolidated financial statements; the future
trading prices of our common stock, the impact of securities
analysts' reports and shares eligible for future sale on these
prices; and our ability to prevent or discover security breaks,
disruption in service and comparable events that could compromise
the personal and confidential information held in our data systems,
reduce the attractiveness of the platform or adversely impact our
ability to service the loans; and other risks, including those
described in our Annual Report on Form 10-K for the year ended
December 31, 2016, our Quarterly
Report on Form 10-Q for the quarter ended June 30, 2017 and in other documents that we file
with the Securities and Exchange Commission from time to time which
are or will be available on the Commission's website at
www.sec.gov. Except as required by law, we undertake no duty to
update the information in this press release.
Investor Contact:
Scott
Reynolds
646.668.3551
sreynolds@ondeck.com
Media Contact:
Jim
Larkin
203-526-7457
jlarkin@ondeck.com
OnDeck, the OnDeck logo, OnDeck Score and OnDeck
Marketplace are trademarks of On Deck Capital, Inc.
|
On Deck Capital,
Inc. and Subsidiaries
|
|
Consolidated
Balance Sheets
|
|
(in thousands, except
share and per share data)
|
|
|
September 30,
2017
|
|
December 31,
2016
|
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
64,292
|
|
|
$
|
79,554
|
|
|
Restricted
cash
|
56,729
|
|
|
44,432
|
|
|
Loans held for
investment
|
957,203
|
|
|
1,000,445
|
|
|
Less: Allowance for
loan losses
|
(104,872)
|
|
|
(110,162)
|
|
|
Loans held for
investment, net
|
852,331
|
|
|
890,283
|
|
|
Loans held for
sale
|
—
|
|
|
373
|
|
|
Property, equipment
and software, net
|
24,975
|
|
|
29,405
|
|
|
Other
assets
|
17,069
|
|
|
20,044
|
|
|
Total
assets
|
$
|
1,015,396
|
|
|
$
|
1,064,091
|
|
|
Liabilities and
equity
|
|
|
|
|
Liabilities:
|
|
|
|
|
Accounts
payable
|
$
|
2,918
|
|
|
$
|
5,271
|
|
|
Interest
payable
|
2,213
|
|
|
2,122
|
|
|
Funding
debt
|
702,998
|
|
|
726,639
|
|
|
Corporate
debt
|
17,180
|
|
|
27,966
|
|
|
Accrued expenses and
other liabilities
|
30,987
|
|
|
38,496
|
|
|
Total
liabilities
|
756,296
|
|
|
800,494
|
|
|
Stockholders' equity
(deficit):
|
|
|
|
|
Common stock—$0.005
par value, 1,000,000,000 shares authorized and 77,002,976 and
74,801,825 shares issued and 73,623,312 and 71,605,708 outstanding
at September 30, 2017 and December 31, 2016,
respectively.
|
385
|
|
|
374
|
|
|
Treasury stock—at
cost
|
(7,561)
|
|
|
(6,697)
|
|
|
Additional paid-in
capital
|
489,465
|
|
|
477,526
|
|
|
Accumulated
deficit
|
(227,973)
|
|
|
(211,299)
|
|
|
Accumulated other
comprehensive loss
|
(6)
|
|
|
(379)
|
|
|
Total On Deck
Capital, Inc. stockholders' equity
|
254,310
|
|
|
259,525
|
|
|
Noncontrolling
interest
|
4,790
|
|
|
4,072
|
|
|
Total
equity
|
259,100
|
|
|
263,597
|
|
|
Total liabilities
and equity
|
$
|
1,015,396
|
|
|
$
|
1,064,091
|
|
|
|
|
|
|
Memo:
|
|
|
|
|
Unpaid Principal
Balance1
|
$
|
940,881
|
|
|
$
|
980,451
|
|
|
Interest Earning
Assets2
|
$
|
940,881
|
|
|
$
|
980,821
|
|
|
Loans3
|
$
|
957,203
|
|
|
$
|
1,000,818
|
|
|
Loans Under
Management4
|
$
|
1,082,296
|
|
|
$
|
1,202,791
|
|
|
On Deck Capital,
Inc. and Subsidiaries
|
|
Consolidated
Average Balance Sheets5
|
|
(in thousands, except
share and per share data)
|
|
|
Average
|
|
Average
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2017
|
2016
|
|
2017
|
2016
|
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
59,530
|
|
$
|
72,309
|
|
|
$
|
58,595
|
|
$
|
90,321
|
|
|
Restricted
cash
|
58,659
|
|
46,478
|
|
|
59,316
|
|
38,884
|
|
|
Loans held for
investment
|
960,587
|
|
851,457
|
|
|
1,001,697
|
|
739,946
|
|
|
Less: Allowance for
loan losses
|
(103,397)
|
|
(81,118)
|
|
|
(109,486)
|
|
(68,775)
|
|
|
Loans held for
investment, net
|
857,190
|
|
770,339
|
|
|
892,211
|
|
671,171
|
|
|
Loans held for
sale
|
—
|
|
4,846
|
|
|
462
|
|
9,051
|
|
|
Property, equipment
and software, net
|
25,919
|
|
30,328
|
|
|
27,480
|
|
29,636
|
|
|
Other
assets
|
17,843
|
|
19,676
|
|
|
18,483
|
|
21,376
|
|
|
Total
assets
|
$
|
1,019,141
|
|
$
|
943,976
|
|
|
$
|
1,056,547
|
|
$
|
860,439
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
$
|
3,077
|
|
$
|
3,332
|
|
|
$
|
3,377
|
|
$
|
4,203
|
|
|
Interest
payable
|
2,300
|
|
1,313
|
|
|
2,322
|
|
1,060
|
|
|
Funding
debt
|
710,601
|
|
597,678
|
|
|
737,864
|
|
505,406
|
|
|
Corporate
debt
|
11,078
|
|
7,699
|
|
|
20,213
|
|
4,698
|
|
|
Accrued expenses and
other liabilities
|
32,276
|
|
32,876
|
|
|
33,786
|
|
32,460
|
|
|
Total
liabilities
|
759,332
|
|
642,898
|
|
|
797,562
|
|
547,827
|
|
|
Total On Deck
Capital, Inc. stockholders' equity
|
254,731
|
|
295,989
|
|
|
253,716
|
|
306,913
|
|
|
Noncontrolling
interest
|
5,077
|
|
5,089
|
|
|
5,269
|
|
5,699
|
|
|
Total
equity
|
259,808
|
|
301,078
|
|
|
258,985
|
|
312,612
|
|
|
Total liabilities
and equity
|
$
|
1,019,140
|
|
$
|
943,976
|
|
|
$
|
1,056,547
|
|
$
|
860,439
|
|
|
|
|
|
|
|
|
Memo:
|
|
|
|
|
|
|
Unpaid Principal
Balance
|
$
|
944,372
|
|
$
|
836,542
|
|
|
$
|
983,230
|
|
$
|
727,038
|
|
|
Interest Earning
Assets
|
$
|
944,372
|
|
$
|
841,270
|
|
|
$
|
983,689
|
|
$
|
735,825
|
|
|
Loans
|
$
|
960,587
|
|
$
|
856,303
|
|
|
$
|
1,002,159
|
|
$
|
748,997
|
|
|
Loans Under
Management
|
$
|
1,089,406
|
|
$
|
1,087,641
|
|
|
$
|
1,159,438
|
|
$
|
1,015,768
|
|
|
On Deck Capital,
Inc.
|
|
Unaudited
Consolidated Statements of Operations
|
|
(in thousands, except
share and per share data)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Interest
income
|
$
|
80,122
|
|
$
|
71,361
|
|
$
|
250,954
|
|
$
|
188,726
|
|
Gain on sales of
loans
|
146
|
|
2,670
|
|
1,890
|
|
12,594
|
|
Other
revenue
|
3,398
|
|
3,340
|
|
10,365
|
|
8,168
|
|
Gross
revenue
|
83,666
|
|
77,371
|
|
263,209
|
|
209,488
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
Provision for loan
losses
|
39,582
|
|
36,586
|
|
118,495
|
|
94,294
|
|
Funding
costs
|
11,330
|
|
8,452
|
|
34,223
|
|
22,548
|
|
Total cost of
revenue
|
50,912
|
|
45,038
|
|
152,718
|
|
116,842
|
|
Net
revenue
|
32,754
|
|
32,333
|
|
110,491
|
|
92,646
|
|
Operating
expense:
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
11,903
|
|
16,789
|
|
42,090
|
|
50,094
|
|
Technology and
analytics
|
11,748
|
|
15,050
|
|
41,960
|
|
42,894
|
|
Processing and
servicing
|
4,160
|
|
5,181
|
|
13,521
|
|
14,261
|
|
General and
administrative
|
9,440
|
|
12,375
|
|
30,917
|
|
34,233
|
|
Total operating
expense
|
37,251
|
|
49,395
|
|
128,488
|
|
141,482
|
|
Loss from
operations
|
(4,497)
|
|
(17,062)
|
|
(17,997)
|
|
(48,836)
|
|
Other
expense:
|
|
|
|
|
|
|
|
|
Interest
expense
|
(35)
|
|
(111)
|
|
(706)
|
|
(186)
|
|
Total other
expense
|
(35)
|
|
(111)
|
|
(706)
|
|
(186)
|
|
Loss before provision
for income taxes
|
(4,532)
|
|
(17,173)
|
|
(18,703)
|
|
(49,022)
|
|
Provision for income
taxes
|
—
|
|
—
|
|
—
|
|
—
|
|
Net loss
|
(4,532)
|
|
(17,173)
|
|
(18,703)
|
|
(49,022)
|
|
Net loss attributable
to noncontrolling interest
|
458
|
|
539
|
|
2,073
|
|
1,920
|
|
Net loss attributable
to On Deck Capital, Inc. common stockholders
|
$
|
(4,074)
|
|
$
|
(16,634)
|
|
$
|
(16,630)
|
|
$
|
(47,102)
|
|
Net loss per share
attributable to On Deck Capital, Inc. common
shareholders:
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
$
|
(0.06)
|
|
$
|
(0.23)
|
|
$
|
(0.23)
|
|
$
|
(0.67)
|
|
Weighted-average
common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
73,272,085
|
|
70,971,895
|
|
72,613,221
|
|
70,750,037
|
|
Supplemental
Information
|
|
|
Key Performance
Metrics
|
|
(in thousands, except
percentage data)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Originations6
|
$
|
530,926
|
|
|
$
|
612,557
|
|
|
$
|
1,568,303
|
|
|
$
|
1,771,906
|
|
|
Effective Interest
Yield7
|
33.4
|
%
|
|
32.8
|
%
|
|
33.4
|
%
|
|
33.4
|
%
|
|
Net Interest
Margin8
|
29.1
|
%
|
|
29.4
|
%
|
|
29.4
|
%
|
|
30.0
|
%
|
|
Marketplace
Gain on Sale Rate9
|
2.7
|
%
|
|
3.0
|
%
|
|
3.3
|
%
|
|
4.3
|
%
|
|
Cost of Funds
Rate10
|
6.4
|
%
|
|
5.7
|
%
|
|
6.2
|
%
|
|
5.9
|
%
|
|
Provision
Rate11
|
7.5
|
%
|
|
6.9
|
%
|
|
7.8
|
%
|
|
6.4
|
%
|
|
Reserve
Ratio12
|
11.1
|
%
|
|
9.8
|
%
|
|
11.1
|
%
|
|
9.8
|
%
|
|
15+ Day Delinquency
Ratio13
|
7.5
|
%
|
|
6.2
|
%
|
|
7.5
|
%
|
|
6.2
|
%
|
|
Net Charge-off
Rate14
|
16.9
|
%
|
|
11.0
|
%
|
|
16.8
|
%
|
|
11.0
|
%
|
|
Net Interest Margin
After Credit Losses (NIMAL)15
|
12.2
|
%
|
|
18.7
|
%
|
|
12.6
|
%
|
|
19.1
|
%
|
|
Adjusted Expense
Ratio (AER)16
|
12.6
|
%
|
|
16.5
|
%
|
|
13.7
|
%
|
|
17.0
|
%
|
|
Adjusted Operating
Yield (AOY)17
|
(0.4)
|
%
|
|
2.2
|
%
|
|
(1.1)
|
%
|
|
2.1
|
%
|
|
|
|
|
|
|
|
Marketplace Gain on Sale
Rate9
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Gain on sales of
loans(a)
|
$
|
146
|
|
|
$
|
2,670
|
|
|
$
|
1,890
|
|
|
$
|
12,594
|
|
|
Carrying value of
loans sold
|
$
|
5,463
|
|
|
$
|
89,867
|
|
|
$
|
56,682
|
|
|
$
|
292,920
|
|
|
Marketplace
Gain on Sale Rate(a)
|
2.7
|
%
|
|
3.0
|
%
|
|
3.3
|
%
|
|
4.3
|
%
|
|
|
(a) Three
months ended September 30, 2016 and 2017 include amounts resulting
from transfers of financial assets as shown in the following
table.
|
|
|
|
|
|
|
|
Activity in
Servicing Rights
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Fair value at the
beginning of period
|
$
|
701
|
|
|
$
|
1,989
|
|
|
$
|
1,131
|
|
|
$
|
3,489
|
|
|
Addition:
|
|
|
|
|
|
|
|
|
Servicing resulting
from transfers of financial assets
|
275
|
|
|
717
|
|
|
938
|
|
|
2,272
|
|
|
Changes in fair
value:
|
|
|
|
|
|
|
|
|
Change in inputs or
assumptions used in the valuation model
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Other changes in fair
value(b)
|
(347)
|
|
|
(1,019)
|
|
|
(1,440)
|
|
|
(4,074)
|
|
|
Fair value at the end
of period
|
$
|
629
|
|
|
$
|
1,687
|
|
|
$
|
629
|
|
|
$
|
1,687
|
|
|
|
(b)
Represents changes due to collection of expected cash flows through
September 30, 2017 and 2016.
|
|
|
|
|
|
|
|
Marketplace Originations as Percent
of Term Loan Originations
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Marketplace
originations
|
$
|
5,340
|
|
|
$
|
85,948
|
|
|
$
|
55,965
|
|
|
$
|
292,942
|
|
|
Origination of term
loans
|
$
|
427,087
|
|
|
$
|
518,509
|
|
|
$
|
1,259,229
|
|
|
$
|
1,520,562
|
|
|
Marketplace
originations as percent of term loan originations
|
1.3
|
%
|
|
16.6
|
%
|
|
4.4
|
%
|
|
19.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Activity in Loans
Held for Investment Balances
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Unpaid Principal
Balance beginning of period
|
$
|
953,809
|
|
|
$
|
790,421
|
|
|
$
|
980,451
|
|
|
$
|
543,790
|
|
|
+ Total
Originations(c)
|
530,926
|
|
|
612,557
|
|
|
1,568,303
|
|
|
1,771,906
|
|
|
+
Loans transferred from loans held for sale to loans held for
investment and loan purchases
|
—
|
|
|
—
|
|
|
—
|
|
|
939
|
|
|
-
Marketplace originations
|
(5,340)
|
|
|
(85,948)
|
|
|
(55,965)
|
|
|
(292,942)
|
|
|
- Sales
of other loans(d)
|
—
|
|
|
(306)
|
|
|
(500)
|
|
|
(548)
|
|
|
+
Purchase of Loans
|
—
|
|
|
—
|
|
|
13,730
|
|
|
6,672
|
|
|
- Net
charge-offs
|
(39,927)
|
|
|
(23,067)
|
|
|
(123,785)
|
|
|
(60,237)
|
|
|
-
Principal paid down(c)(e)
|
(498,588)
|
|
|
(404,354)
|
|
|
(1,441,354)
|
|
|
(1,080,277)
|
|
|
Unpaid Principal
Balance end of period
|
940,880
|
|
|
889,303
|
|
|
940,880
|
|
|
889,303
|
|
|
+ Net
deferred origination costs
|
16,323
|
|
|
16,024
|
|
|
16,323
|
|
|
16,024
|
|
|
Loans held for
investment
|
957,203
|
|
|
905,327
|
|
|
957,203
|
|
|
905,327
|
|
|
-
Allowance for loan losses
|
(104,872)
|
|
|
(87,368)
|
|
|
(104,872)
|
|
|
(87,368)
|
|
|
Loans held for
investment, net
|
$
|
852,331
|
|
|
$
|
817,959
|
|
|
$
|
852,331
|
|
|
$
|
817,959
|
|
|
|
(c)
Includes Unpaid Principal Balance of term loans rolled into new
originations of $82.8 million and $70.9 million in the three months
ended September 30, 2017 and 2016, respectively, and $220.9 million
and $200.6 million for the nine months ended September 30, 2017 and
2016, respectively.
|
|
(d)
Includes loans sold that were previously designated as held for
investment in at least one fiscal quarter prior to the quarter in
which they were sold.
|
|
(e)
Excludes principal that was paid down related to renewed loans sold
in the period which were designated as held for investment in the
amount of $0 and $0.3 million, in the three months ended September
30, 2017 and 2016, respectively, and $0.2 million and $1.3 million
for the nine months ended September 30, 2017 and 2016,
respectively
|
|
|
|
|
|
|
|
Activity in the
Allowance for Loan Losses
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Allowance for loan
losses beginning of period
|
$
|
105,217
|
|
|
$
|
73,849
|
|
|
$
|
110,162
|
|
|
$
|
53,311
|
|
|
+ Provision
for loan losses(f)
|
39,582
|
|
|
36,586
|
|
|
118,495
|
|
|
94,294
|
|
|
- Net
charge-offs
|
(39,927)
|
|
|
(23,067)
|
|
|
(123,785)
|
|
|
(60,237)
|
|
|
Allowance for loan
losses end of period
|
$
|
104,872
|
|
|
$
|
87,368
|
|
|
$
|
104,872
|
|
|
$
|
87,368
|
|
|
|
(f)
Excludes an immaterial provision expense and a $0.2 million
provision expense for the three months ended September 30, 2017 and
2016, and provision expense of $0.3 million and provision release
of $0.4 million for the nine month period ended September 30, 2017
and 2016, respectively, for unfunded loan commitments. The
provision for unfunded loan commitments is included in general and
administrative expense.
|
|
Supplemental
Information
|
|
|
Non-GAAP
Reconciliation18
|
|
(in thousands, except
share and per share data)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Net income
(loss)
|
$
|
(4,532)
|
|
|
$
|
(17,173)
|
|
|
$
|
(18,703)
|
|
|
$
|
(49,022)
|
|
|
Interest
expense
|
35
|
|
|
111
|
|
|
706
|
|
|
186
|
|
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Depreciation and
amortization
|
2,451
|
|
|
2,452
|
|
|
7,623
|
|
|
6,887
|
|
|
Stock-based
compensation
|
3,056
|
|
|
3,761
|
|
|
9,521
|
|
|
11,423
|
|
|
Adjusted
EBITDA19
|
$
|
1,010
|
|
|
$
|
(10,849)
|
|
|
$
|
(853)
|
|
|
$
|
(30,526)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Net income
(loss)
|
$
|
(4,532)
|
|
|
$
|
(17,173)
|
|
|
$
|
(18,703)
|
|
|
$
|
(49,022)
|
|
|
Net loss attributable
to noncontrolling interest
|
458
|
|
|
539
|
|
|
2,073
|
|
|
1,920
|
|
|
Stock-based
compensation
|
3,056
|
|
|
3,761
|
|
|
9,521
|
|
|
11,423
|
|
|
Adjusted Net Income
(Loss)20
|
$
|
(1,018)
|
|
|
$
|
(12,873)
|
|
|
$
|
(7,109)
|
|
|
$
|
(35,679)
|
|
|
Adjusted Net Income
(Loss) per share21:
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.01)
|
|
|
$
|
(0.18)
|
|
|
$
|
(0.10)
|
|
|
$
|
(0.50)
|
|
|
Diluted
|
$
|
(0.01)
|
|
|
$
|
(0.18)
|
|
|
$
|
(0.10)
|
|
|
$
|
(0.50)
|
|
|
Weighted-average
common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
73,272,085
|
|
|
70,971,895
|
|
|
72,613,221
|
|
|
70,750,037
|
|
|
Diluted
|
73,272,085
|
|
|
70,971,895
|
|
|
72,613,221
|
|
|
70,750,037
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin (NIM) Reconciliation and
Calculation8
|
|
(in
thousands)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Interest
income
|
$
|
80,122
|
|
|
$
|
71,361
|
|
|
$
|
250,954
|
|
|
$
|
188,726
|
|
|
Less: Funding
costs
|
(11,330)
|
|
|
(8,452)
|
|
|
(34,223)
|
|
|
(22,548)
|
|
|
Net interest
margin (NIM)
|
68,792
|
|
|
62,909
|
|
|
216,731
|
|
|
166,178
|
|
|
Divided by: business
days in period
|
63
|
|
|
64
|
|
|
189
|
|
|
190
|
|
|
Net interest
income per business day
|
1,092
|
|
|
983
|
|
|
1,147
|
|
|
875
|
|
|
Multiplied by:
average business days per year
|
252
|
|
|
252
|
|
|
252
|
|
|
252
|
|
|
Annualized net
interest income
|
275,184
|
|
|
247,716
|
|
|
289,044
|
|
|
220,500
|
|
|
Divided by: average
Interest Earning Assets
|
$
|
944,372
|
|
|
$
|
841,270
|
|
|
$
|
983,689
|
|
|
$
|
735,825
|
|
|
Net Interest
Margin (NIM)
|
29.1
|
%
|
|
29.4
|
%
|
|
29.4
|
%
|
|
30.0
|
%
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin After Credit Losses (NIMAL) Reconciliation and
Calculation15
|
|
(in
thousands)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Interest
income
|
$
|
80,122
|
|
|
$
|
71,361
|
|
|
$
|
250,954
|
|
|
$
|
188,726
|
|
|
Less: Funding
costs
|
(11,330)
|
|
|
(8,452)
|
|
|
(34,223)
|
|
|
(22,548)
|
|
|
Net interest
margin (NIM)
|
68,792
|
|
|
62,909
|
|
|
216,731
|
|
|
166,178
|
|
|
Less: Net
charge-offs
|
(39,927)
|
|
|
(23,067)
|
|
|
(123,785)
|
|
|
(60,237)
|
|
|
Net interest
income after credit losses
|
28,865
|
|
|
39,842
|
|
|
92,946
|
|
|
105,941
|
|
|
Divided by: business
days in period
|
63
|
|
|
64
|
|
|
189
|
|
|
190
|
|
|
Net interest
income after credit losses per business day
|
458
|
|
|
623
|
|
|
492
|
|
|
558
|
|
|
Multiplied by:
average business days per year
|
252
|
|
|
252
|
|
|
252
|
|
|
252
|
|
|
Annualized net
interest income after credit losses
|
115,416
|
|
|
156,996
|
|
|
123,984
|
|
|
140,616
|
|
|
Divided by: average
Interest Earning Assets
|
$
|
944,372
|
|
|
$
|
841,270
|
|
|
$
|
983,689
|
|
|
$
|
735,825
|
|
|
Net Interest
Margin After Credit Losses (NIMAL)
|
12.2
|
%
|
|
18.7
|
%
|
|
12.6
|
%
|
|
19.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Expense
Ratio (AER) Reconciliation and
Calculation16
|
|
(in
thousands)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Operating
expense
|
$
|
37,251
|
|
|
$
|
49,395
|
|
|
$
|
128,488
|
|
|
$
|
141,482
|
|
|
Less: stock based
compensation
|
(3,056)
|
|
|
(3,761)
|
|
|
(9,521)
|
|
|
(11,423)
|
|
|
Operating expense
(Ex. SBC)
|
34,195
|
|
|
45,634
|
|
|
118,967
|
|
|
130,059
|
|
|
Divided by: business
days in period
|
63
|
|
|
64
|
|
|
189
|
|
|
190
|
|
|
Operating expense
(Ex. SBC) per business day
|
543
|
|
|
713
|
|
|
629
|
|
|
685
|
|
|
Multiplied by:
average business days per year
|
252
|
|
|
252
|
|
|
252
|
|
|
252
|
|
|
Operating expense
(Ex. SBC)
|
136,836
|
|
|
179,676
|
|
|
158,508
|
|
|
172,620
|
|
|
Divided by: average
Loans Under Management
|
$
|
1,089,406
|
|
|
$
|
1,087,641
|
|
|
$
|
1,159,438
|
|
|
$
|
1,015,768
|
|
|
Adjusted Expense
Ratio (AER)
|
12.6
|
%
|
|
16.5
|
%
|
|
13.7
|
%
|
|
17.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Yield (AOY) Reconciliation and
Calculation17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Net Interest Margin
After Losses (NIMAL)
|
12.2
|
%
|
|
18.7
|
%
|
|
12.6
|
%
|
|
19.1
|
%
|
|
Less: Adjusted
expense ratio (AER)
|
12.6
|
%
|
|
16.5
|
%
|
|
13.7
|
%
|
|
17.0
|
%
|
|
Adjusted Operating
Yield (AOY)
|
(0.4)
|
%
|
|
2.2
|
%
|
|
(1.1)
|
%
|
|
2.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
Compensation (in thousands)
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Sales and
marketing
|
$
|
538
|
|
|
$
|
920
|
|
|
$
|
1,830
|
|
|
$
|
2,749
|
|
|
Technology and
analytics
|
499
|
|
|
793
|
|
|
1,824
|
|
|
2,437
|
|
|
Processing and
servicing
|
99
|
|
|
227
|
|
|
429
|
|
|
781
|
|
|
General and
administrative
|
1,920
|
|
|
1,821
|
|
|
5,438
|
|
|
5,456
|
|
|
Total stock-based
compensation
|
$
|
3,056
|
|
|
$
|
3,761
|
|
|
$
|
9,521
|
|
|
$
|
11,423
|
|
|
|
Supplemental
Channel Information
|
|
|
Quarterly
Origination Channel Distribution
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
Percentage of
originations (number of loans22)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Direct &
Strategic Partner
|
76.5
|
%
|
|
79.8
|
%
|
|
77.5
|
%
|
|
80.3
|
%
|
|
Funding
Advisor
|
23.5
|
%
|
|
20.2
|
%
|
|
22.5
|
%
|
|
19.7
|
%
|
|
Percentage of
originations (dollars)
|
|
|
|
|
|
|
Direct &
Strategic Partner
|
73.4
|
%
|
|
73.0
|
%
|
|
73.4
|
%
|
|
73.1
|
%
|
|
Funding
Advisor
|
26.6
|
%
|
|
27.0
|
%
|
|
26.6
|
%
|
|
26.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
(1) Unpaid
Principal Balance represents the total amount of principal
outstanding of term loans held for investment, amounts outstanding
under lines of credit and the amortized cost of loans purchased
from other than issuing bank partners at the end of the period. It
excludes net deferred origination costs, allowance for loan losses
and any loans sold or held for sale at the end of the
period.
|
|
(2)
Interest Earning Assets represents the sum of Unpaid Principal
Balance plus the amount of principal outstanding of loans held for
sale in the period. It excludes net deferred origination costs,
allowance for loan losses and any loans sold or held for sale at
the end of the period. Average Interest Earnings Assets is
calculated as the average of Interest Earnings Assets at the
beginning of the period and the end of each month in the
period.
|
|
(3) Loans
represents the sum of loans held for investment and loans held for
sale during the period.
|
|
(4) Loans
Under Management represents the Unpaid Principal Balance plus the
unpaid principal balance of loans held for sale, excluding net
deferred origination costs, plus the amount of principal
outstanding of term loans we serviced for others at the end of the
period. Average Loans Under Management is calculated as the average
of Loans Under Management at the beginning of the period and the
end of each month in the period.
|
|
(5)
Average Balance Sheet Items for the period represent the average as
of the beginning of the month in the period and as of the end of
each month in the period.
|
|
(6)
Originations represent the total principal amount of the term loans
we made during the period, plus the total amount drawn on lines of
credit during the period. Many of our repeat term loan customers
renew their term loans before their existing term loan is fully
repaid. In accordance with industry practice, originations of such
repeat term loans are presented as the full renewal loan principal,
rather than the net funded amount, which would be the renewal term
loan's principal net of the unpaid principal balance on the
existing term loan. Loans referred to, and funded by, our issuing
bank partners and later purchased by us are included as part of our
originations.
|
|
(7)
Effective Interest Yield is the rate of return we achieve on loans
outstanding during a period. It is calculated as our business day
adjusted annualized interest income divided by average Loans.
Annualization is based on 252 business days per year, which is
typical weekdays per year less U.S. Federal Reserve Bank holidays.
Net deferred origination costs in loans held for investment and
loans held for sale consist of deferred origination fees and costs.
Deferred origination costs are limited to costs directly
attributable to originating loans such as commissions, vendor costs
and personnel costs directly related to the time spent by the
personnel performing activities related to loan origination and
increase the carrying value of loans, thereby decreasing the
Effective Interest Yield earned.
|
|
(8) Net
Interest Margin, is calculated as business day adjusted annualized
Net Interest Income divided by average Interest Earning Assets. Net
Interest Income represents interest income less funding cost during
the period. Interest income is net of fees on loans held for
investment and held for sale. Net deferred origination costs in
loans held for investment and loans held for sale consist of
deferred origination costs as offset by corresponding deferred
origination fees. Deferred origination fees include fees paid up
front to us by customers when loans are funded. Deferred
origination costs are limited to costs directly attributable to
originating loans such as commissions, vendor costs and personnel
costs directly related to the time spent by the personnel
performing activities related to loan origination. Funding cost is
the interest expense, fees, and amortization of deferred debt
issuance costs we incur in connection with our lending activities
across all of our debt facilities. Annualization is based on 252
business days per year, which is typical weekdays per year less
U.S. Federal Reserve Bank holidays.
|
|
(9)
Marketplace Gain on Sale Rate equals our gain on sale revenue from
loans sold through OnDeck Marketplace divided by the carrying value
of loans sold, which includes both unpaid principal balance sold
and the remaining carrying value of the net deferred origination
costs. A portion of loans regularly sold through OnDeck
Marketplace are or may be loans which were initially
designated as held for investment upon origination. The portion of
such loans sold in a given period may vary materially depending
upon market conditions and other circumstances.
|
|
(10) Cost
of Funds Rate is our funding cost, which is the interest expense,
fees and amortization of deferred debt issuance costs we incur in
connection with our lending activities across all of our debt
facilities. For full years, it is calculated as our funding cost
divided by average funding debt outstanding and for interim periods
it is calculated as our annualized funding cost for the period
divided by average funding debt outstanding. Annualization is based
on 4 quarters per year and is not business day adjusted.
|
|
(11)
Provision Rate equals the provision for loan losses divided by the
new originations volume of loans held for investment, net of
originations of sales of such loans within the period.
Because we reserve for probable credit losses inherent in the
portfolio upon origination, this rate is significantly impacted by
the expectation of credit losses for the period's originations
volume. This rate may also be impacted by changes in loss
expectations for loans originated prior to the commencement of the
period. The denominator of the Provision Rate formula includes the
full amount of originations in a period.
|
|
(12)
Reserve Ratio is our allowance for loan losses as of the end of the
period divided by the Unpaid Principal Balance as of the end of the
period.
|
|
(13) 15+
Day Delinquency Ratio equals the aggregate Unpaid Principal Balance
for our loans that are 15 or more calendar days past due as of the
end of the period as a percentage of the Unpaid Principal Balance
for such period. The Unpaid Principal Balance for our loans that
are 15 or more calendar days past due includes loans that are
paying and non-paying. Because our loans require daily and weekly
repayments, excluding weekends and holidays, they may be deemed
delinquent more quickly than loans from traditional lenders that
require only monthly payments. 15+ Day Delinquency Ratio is not
annualized, but reflects balances as of the end of the
period.
|
|
(14) Net
Charge-off Rate is calculated as our annualized net charge-offs for
the period divided by the average Unpaid Principal Balance
outstanding. Annualization is based on 4 quarters per year and is
not business day adjusted. Net charge-offs are charged-off loans in
the period, net of recoveries.
|
|
(15) Net
Interest Margin After Credit Losses (NIMAL), is calculated as our
business day adjusted annualized Net Interest Income After Credit
Losses divided by average Interest Earning Assets. Net Interest
Income After Credit Losses represents interest income less funding
cost and net charge-offs during the period. Interest income is net
of deferred costs and fees on loans held for investment and held
for sale. Net deferred origination costs in loans held for
investment and loans held for sale consist of deferred origination
costs as offset by corresponding deferred origination fees.
Deferred origination fees include fees paid up front to us by
customers when loans are funded. Deferred origination costs are
limited to costs directly attributable to originating loans such as
commissions, vendor costs and personnel costs directly related to
the time spent by the personnel performing activities related to
loan origination. Funding cost is the interest expense, fees, and
amortization of deferred debt issuance costs we incur in connection
with our lending activities across all of our debt facilities. Net
charge-offs are charged-off loans in the period, net of recoveries.
Annualization is based on 252 business days per year, which is
typical weekdays per year less U.S. Federal Reserve Bank
holidays.
|
|
(16)
Adjusted Expense Ratio (AER) represents our annualized operating
expense, adjusted to exclude the impact of stock-based
compensation, divided by average Loans Under Management.
Annualization is based on 252 business days per year, which is
typical weekdays per year less U.S. Federal Reserve Bank
holidays.
|
|
(17)
Adjusted Operating Yield (AOY) represents our Net Interest Margin
After Credit Losses (NIMAL) less the Adjusted Expense Ratio
(AER).
|
|
(18) Due
to the uncertainty regarding and variability of certain items that
will affect our expected U.S. GAAP net income (loss) for the fourth
quarter of 2017 and full year 2017, such as stock-based
compensation and other items, we are currently unable to provide a
reasonable estimate of our U.S. GAAP net income (loss) for these
future periods or a corresponding reconciliation to U.S. GAAP net
income (loss). Our U.S. GAAP net income (loss) for these future
periods will be less favorable than our Adjusted EBITDA for these
periods.
|
|
(19)
Adjusted EBITDA represents our net income (loss), adjusted to
exclude interest expense associated with debt used for corporate
purposes (rather than funding costs associated with lending
activities), income tax expense, depreciation and amortization and
stock-based compensation expense. Our use of Adjusted EBITDA has
limitations as an analytical tool, and you should not consider it
in isolation or as a substitute for analysis of our results as
reported under GAAP. Some of these limitations are: Although
depreciation and amortization are non-cash charges, the assets
being depreciated and amortized may have to be replaced in the
future, and Adjusted EBITDA does not reflect cash capital
expenditure requirements for such replacements or for new capital
expenditure requirements; Adjusted EBITDA does not reflect changes
in, or cash requirements for, our working capital needs; Adjusted
EBITDA does not reflect the potentially dilutive impact of
stock-based compensation; Adjusted EBITDA does not reflect interest
associated with debt used for corporate purposes or tax payments
that may represent a reduction in cash available to us.
|
|
(20)
Adjusted Net Income (Loss) represents our net loss adjusted to
exclude net loss attributable to non-controlling interest and
stock-based compensation expense, each on the same basis and with
the same limitations as described above for Adjusted
EBITDA.
|
|
(21)
Adjusted Net Income (Loss) per share represents our net loss
adjusted to exclude net loss attributable to non-controlling
interest and stock-based compensation expense, each on the same
basis and with the same limitations as described above for Adjusted
EBITDA, divided by the weighted average common shares outstanding
during the period.
|
|
(22)
Number of loans, or units, equals the total number of term loans
funded, plus the total number of lines of credit drawn on for the
first time during the period.
|
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SOURCE On Deck Capital, Inc.