CBOE Holdings Inc.

05/23/2019 | Press release | Distributed by Public on 05/23/2019 18:27

GreenSky CEO David Zalik Says Recent Share Price Volatility has Created an Attractive Opportunity for the Company to Accelerate its Share Repurchases

Cboe - Market News Story

GreenSky CEO David Zalik Says Recent Share Price Volatility has Created an Attractive Opportunity for the Company to Accelerate its Share Repurchases

Charles Gross 5/23/2019 6:53:45 PM

GreenSky, Inc. (NASDAQ: GSKY) commented on its recent share price volatility following the release of its Form 10-Q filed on May 15, 2019.

'When we ultimately decided to become a public company last year, we committed to be fully transparent in connection with our financial reporting. We take this responsibility seriously and, thus, always strive to publicly share with our investors information that we believe could be helpful in evaluating our Company,' said David Zalik, Chairman and CEO of GreenSky. 'With greater than $4.5 Billion of unused bank commitments available to fund GreenSky transaction growth well into 2020, our disclosure that, for its own strategic reasons, we do not expect Regions Financial, to renew its existing commitment with GreenSky upon expiration of its term, is hardly noteworthy. While we anticipate periodically announcing both new bank partner funding commitments along with the expansion of existing bank funding commitments in the ordinary course of business, given our year plus of funding headroom, we feel no sense of urgency today to add new bank partners to our GreenSky funding consortium.'

Zalik added, 'Our leadership team and associates have worked tirelessly the past six years since entering the point of sale technology space to deliver an unrivaled value proposition to our ecosystem of merchants, banks and consumer borrowers. Our bank partners have come to rely on GreenSky to deliver a national portfolio of prime and super-prime assets, with minimal volatility, generating attractive risk-adjusted returns. The GreenSky business model has proven to be uniquely durable and, unlike the vast majority of fintech businesses we are aware of, has generated, and continues to generate, outstanding financial returns for all stakeholders:

2018 Transaction Volume in excess of $5.0 Billion
Three-year Revenue compound annual growth rate in excess of 33%
2018 Adjusted EBITDA of $171.5 Million (with an Adjusted EBITDA margin of 41%)
$1.8 Billion of Cumulative Capital returned in the form of cash distributions and share repurchases
Cumulative Transaction Volume consummated in excess of $17 Billion
Nearly 16,000 active Merchants using the GreenSky technology platform
Loan Servicing Portfolio currently in excess of $7.6 Billion
Over 2.4 million Cumulative Customers
The recent volatility in GreenSky's share price since the filing of the 10-Q has created an attractive opportunity for the Company to accelerate its share repurchases, consistent with our Board approved share repurchase program, for the benefit of all long-term GreenSky shareholders. We have repurchased over $100 million thus far, and intend to continue to buy back our shares aggressively.'