TORONTO, Feb. 3, 2022 /CNW/ - Propel Holdings Inc.
("Propel" or the "Company") (TSX: PRL) today provided
an update on certain operating results as at December 31, 2021 ("Q4 2021") and declared
a dividend for the first quarter of 2022. All amounts are expressed
in U.S. dollars unless otherwise stated.
Record Loans and Advances Receivable and Total Originations
Funded1
Propel expects to report record loans and advances receivable of
between $103 million and $106 million as at December 31, 2021, representing year-over-year
growth of between 100% and 105%. The Company also expects to report
Ending Combined Loan and Advanced Balance1 growth
exceeding 110% as at the end of Q4 2021 compared to the prior year.
Additionally, Propel expects to report Total Originations
Funded1 of between $88
million and $90 million in Q4
2021, or between 93% to 98% growth as compared to the prior year.
The growth in loans and advances receivable and Total Originations
Funded1 is the result of the successful launch of
variable pricing and graduation capabilities, greater geographic
coverage, seasonality, and rising overall consumer demand. The
Company expects an increase in acquisition and data costs
commensurate with the higher origination volume in Q4 2021.
The variable pricing and graduation capabilities rolled out at
the end of Q3 2021 performed stronger than expected in Q4 2021.
While both programs are expected to carry lower Annualized Revenue
Yields1 than the Company's traditional programs, the
Company expects lower relative provisions for loan losses along
with lower Cost per Funded Origination1 to drive
continued growth in profitability and cash flow over the long term.
The rollout of these capabilities is aligned with advancing
Propel's mission of improving credit inclusion across the credit
spectrum.
Consistent with the Company's strategic growth plan, Propel
advanced the geographic presence of its programs over the course of
Q4 2021. During the quarter, the Company facilitated the expansion
of bank partner programs into six new U.S. states through the
MoneyKey brand, and seven new U.S. states through CreditFresh.
"The Propel team seized the opportunities from rising consumer
demand, favourable seasonality and a wider product offering to
deliver record origination volumes in Q4 2021. This was a
tremendous milestone to achieve and an exciting way to cap a
transformational year. We are executing on our growth strategy
while furthering our mission to provide access to credit to an even
broader group of underserved consumers," said Clive Kinross, Chief Executive Officer.
Note 1: See "Non-IFRS
Financial Measures and Industry Metrics".
|
Declaration of Dividend
Propel also announced today that its board of directors has
declared a dividend of C$0.095 per
common share, payable on March 10, 2022 to shareholders
of record as of the close of business on February 17,
2022. The Company has designated this dividend as an eligible
dividend within the meaning of the Income Tax Act (Canada).
About Propel
Propel is an innovative, online financial technology ("fintech")
company, committed to credit inclusion by providing fair, fast and
transparent access to credit with exceptional service using its
proprietary online lending platform. Through its operating brands,
MoneyKey and CreditFresh, Propel is focused on providing access to
credit to the over 60 million underserved U.S. consumers who
struggle to access credit from mainstream credit providers.
Propel's revenue growth and profitability have accelerated
significantly over the past two years as Propel has been able to
facilitate access to credit for an increasing number of consumers,
helping them move forward in their credit journeys.
Non-IFRS Financial Measures and Industry Metrics
This press release makes reference to certain non-IFRS financial
measures and industry metrics. These measures are not
recognized measures under IFRS and do not have a standardized
meaning prescribed by IFRS and are therefore unlikely to be
comparable to similar measures presented by other companies.
Rather, these measures are provided as additional information to
complement those IFRS measures by providing further understanding
of our results of operations from management's perspective.
Accordingly, these measures should not be considered in isolation
nor as a substitute for analysis of our financial information
reported under IFRS. Such measures include "Annualized Revenue
Yield", "Ending Combined Loan and Advance Balances" and "Total
Originations Funded". These non-IFRS financial measures and
industry metrics are used to provide investors with supplemental
measures of our operating performance and thus highlight trends in
our core business that may not otherwise be apparent when relying
solely on IFRS measures. We believe that securities analysts,
investors and other interested parties frequently use non-IFRS
financial measures and industry metrics in the evaluation of
issuers. The Company's management also uses non-IFRS financial
measures and industry metrics in order to facilitate operating
performance comparisons from period to period, to prepare annual
operating budgets and forecasts, and to determine components of
management and executive compensation. The key performance
indicators used by the Company may be calculated in a manner
different than similar key performance indicators used by other
similar companies. Definitions and reconciliations of our
non-IFRS financial measures to the relevant reported measures can
be found in the Company's managements' discussion & analysis.
Presentation of Financial Information
The preliminary, unaudited results included in this press
release are based on information available to the Company as of the
date of this release. Final reported results could differ from
these preliminary results following the completion of year-end
accounting procedures, final adjustments and other developments
arising between now and the time that the Company's financial
results are finalized, and such changes could be material. The
Company's independent auditor has not audited, reviewed or
performed any procedures with respect to the preliminary results
included in this press release, and accordingly does not express an
opinion or any other form of assurance with respect thereto. In
addition, these preliminary results are not a comprehensive
statement of the Company's financial results for the quarter and
fiscal year ended December 31, 2021.
They should not be viewed as a substitute for audited financial
statements prepared in accordance with International Financial
Reporting Standards and are not necessarily indicative of the
Company's results for any future period.
Forw ard-Looking Information
Certain information in this press release, including
preliminary, unaudited results for Q4 2021, trends and expectations
regarding acquisition and data costs, Annualized Revenue Yields of
the variable pricing and graduation programs, expected provisions
for loan losses and other liabilities and Cost per Funded
Origination as the variable pricing and graduation programs
develop, constitutes forward looking information . In some cases,
but not necessarily in all cases, forward-looking information can
be identified by the use of forward-looking terminology such as
"plans", "targets", "expects" or "does not expect", "is expected",
"an opportunity exists", "is positioned", "estimates", "intends",
"assumes", "anticipates" or "does not anticipate" or "believes", or
variations of such words and phrases or state that certain actions,
events or results "may", "could", "would", "might", "will" or "will
be taken", "occur" or "be achieved". In addition, any statements
that refer to expectations, projections or other characterizations
of future events or circumstances contain forward-looking
information. Statements containing forward-looking information are
not historical facts but instead represent management's
expectations, estimates and projections regarding future
events.
Although the Company believes that the forward-looking
statements in this press release are based on information and
assumptions that are current, reasonable and complete, these
statements are by their nature subject to a number of factors that
could cause actual results to differ materially from management's
expectations and plans as set forth in such forward-looking
statements. Forward-looking information is necessarily based
on a number of opinions, assumptions and estimates that, while
considered reasonable by Propel as of the date of this press
release, are subject to known and unknown risks, uncertainties,
assumptions and other factors that may cause the actual results,
level of activity, performance or achievements to be materially
different from those expressed or implied by such forward-looking
information, including but not limited to the factors described in
greater detail in the "Risk Factors" section of the Company's final
prospectus dated October 13, 2021 and
the Company's other periodic filings made available at
www.sedar.com. These factors are not intended to represent a
complete list of the factors that could affect Propel; however,
these factors should be considered carefully. There can be no
assurance that such estimates and assumptions will prove to be
correct. The forward-looking statements contained in this press
release are made as of the date of this press release, and Propel
expressly disclaims any obligation to update or alter statements
containing any forward-looking information, or the factors or
assumptions underlying them, whether as a result of new
information, future events or otherwise, except as required by
law.
SOURCE Propel Holdings Inc.