OppFi Announces $0.12 Per Share Special Dividend, $20 Million Share Repurchase Program
April 09 2024 - 4:30AM
Business Wire
OppFi Inc. (NYSE: OPFI) (“OppFi” or the “Company”), a
tech-enabled, mission-driven specialty finance platform that
broadens the reach of community banks to extend credit access to
everyday Americans, today announced that its Board of Directors
(the “Board”) has declared a $0.12 per share special dividend to be
payable on May 1, 2024 to holders of record of the Company’s Class
A common stock as of the close of business on April 19, 2024. In
addition, the Board authorized a new $20 million share repurchase
program.
“We’re excited to distribute our first special dividend as a
public company, demonstrating our commitment to rewarding
stockholders and confidence in continuing to generate strong free
cash flow,” said Todd Schwartz, Chief Executive Officer and
Executive Chairman of OppFi. “We also believe the Company's stock
price is disconnected from OppFi's intrinsic value and earnings
potential. Therefore, as part of our capital allocation strategy,
the Board has authorized a new share repurchase program that will
enable us to further support our stock price and stockholders.”
“Given the strength of OppFi's balance sheet, we believe we are
able to return value to stockholders, with this special dividend
and anticipated near-term share repurchase activity, and maintain
optionality to create further stockholder value by pursuing
corporate development objectives and investing in high-quality
growth initiatives for our core business,” concluded Schwartz.
In addition to the special dividend payable to Class A common
stockholders, the Board approved a $0.12 per unit special
distribution to holders of record of Class A common units of
Opportunity Financial, LLC as of the close of business on April 19,
2024. Distributions with respect to earnout units of Opportunity
Financial, LLC will not be payable to the holders thereof unless
such units vest prior to expiration. Future declarations of
dividends are subject to the determination and discretion of the
Board.
Repurchases under the program may be made from time to time, on
the open market, in privately negotiated transactions, or by other
methods, at the discretion of the management of the Company and in
accordance with the limitations set forth in Rule 10b-18
promulgated under the Securities Exchange Act of 1934, as amended,
and other applicable legal requirements, including restrictions in
the Company’s existing credit facilities. Repurchases may be made
pursuant to any trading plan that may be adopted in accordance with
SEC Rule 10b5-1, which would permit Class A common stock to be
repurchased when the Company might otherwise be precluded from
doing so under insider trading laws. The timing and amount of the
repurchases will depend on market conditions and other
requirements. The program does not obligate the Company to
repurchase any dollar amount or number of shares, and the program
may be extended, modified, suspended, or discontinued at any time.
For each share of Class A common stock that the Company repurchases
under the program, Opportunity Financial, LLC, the Company’s direct
subsidiary, will redeem one Class A common unit of Opportunity
Financial, LLC held by the Company, decreasing the percentage
ownership of Opportunity Financial, LLC by the Company and
relatively increasing the ownership by the other members. The
repurchase program will expire in April 2027.
About OppFi
OppFi (NYSE: OPFI) is a tech-enabled, mission-driven specialty
finance platform that broadens the reach of community banks to
extend credit access to everyday Americans. Through transparency,
responsible lending, financial inclusion, and an excellent customer
experience, the Company supports consumers, who are turned away by
mainstream options, to build better financial health. OppLoans by
OppFi maintains a 4.5/5.0 star rating on Trustpilot with more than
4,200 reviews, making the Company one of the top consumer-rated
financial platforms online. For more information, please visit
oppfi.com.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. OppFi’s actual results
may differ from its expectations, estimates and projections and
consequently, you should not rely on these forward-looking
statements as predictions of future events. Words such as “expect,”
“estimate,” “project,” “budget,” “forecast,” “anticipate,”
“intend,” “plan,” “may,” “will,” “could,” “should,” “believes,”
“predicts,” “potential,” “possible,” “continue,” and similar
expressions may identify forward-looking statements, but the
absence of these words does not mean that a statement is not
forward-looking. These forward-looking statements include, without
limitation, statements regarding the amount, timing and execution
of OppFi’s Share Repurchase Program, the payment of dividends,
expectations for OppFi’s growth and future financial performance,
the future trading price of OppFi’s Class A common stock and future
strategy and investments. These forward-looking statements are
based on OppFi’s current expectations and assumptions about future
events and are based on currently available information as to the
outcome and timing of future events. These forward-looking
statements involve significant risks and uncertainties that could
cause the actual results to differ materially from the expected
results. Most of these factors are outside OppFi’s control and are
difficult to predict. Factors that may cause such differences
include, but are not limited to: the impact of general economic
conditions, including economic slowdowns, inflation, interest rate
changes, recessions, and tightening of credit markets on OppFi’s
business; the impact of challenging macroeconomic and marketplace
conditions, including lingering effects of COVID-19 on OppFi’s
business; the impact of stimulus or other government programs;
whether OppFi will be successful in obtaining declaratory relief
against the Commissioner of the Department of Financial Protection
and Innovation for the State of California; whether OppFi will be
subject to AB 539; whether OppFi’s bank partners will continue to
lend in California and whether OppFi’s financing sources will
continue to finance the purchase of participation rights in loans
originated by OppFi’s bank partners in California; the impact that
events involving financial institutions or the financial services
industry generally, such as actual concerns or events involving
liquidity, defaults, or non-performance, may have on OppFi’s
business; risks related to the material weakness in OppFi’s
internal controls over financial reporting; the ability of OppFi to
grow and manage growth profitably and retain its key employees;
risks related to new products; risks related to evaluating and
potentially consummating acquisitions; concentration risk; risks
related to OppFi’s ability to comply with various covenants in its
corporate and warehouse credit facilities; costs related to the
business combination; changes in applicable laws or regulations;
the possibility that OppFi may be adversely affected by other
economic, business, and/or competitive factors; risks related to
management transitions; risks related to the restatement of OppFi’s
financial statements and any accounting deficiencies or weaknesses
related thereto; and other risks and uncertainties indicated from
time to time in OppFi’s filings with the United States Securities
and Exchange Commission, in particular, contained in the section or
sections captioned “Risk Factors.” OppFi cautions that the
foregoing list of factors is not exclusive, and readers should not
place undue reliance upon any forward-looking statements, which
speak only as of the date made. OppFi does not undertake or accept
any obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements to reflect any change
in its expectations or any change in events, conditions or
circumstances on which any such statement is based.
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