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GreenSky, Inc. CEO David Zalik Comments on Recent Share Price Volatility



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ATLANTA–(BUSINESS WIRE)–lt;a href=”” target=”_blank”gt;$GSKYlt;/agt;–GreenSky, Inc. (“GreenSky” or the “Company”) (NASDAQ: GSKY), a leading
financial technology company Powering Commerce at the Point of SaleSM,
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

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.”

About GreenSky, Inc.


GreenSky, Inc. (NASDAQ: GSKY) is a leading technology company Powering
Commerce at the Point of SaleSM for a growing ecosystem of
merchants, consumers and banks. Our highly scalable, proprietary
technology platform enables nearly 16,000 merchants to offer
frictionless promotional payment options to consumers, driving increased
sales volume and accelerated cash flow. Banks leverage GreenSky’s
technology to provide loans to super-prime and prime consumers
nationwide. Since our inception, over 2.4 million consumers have
financed over $17 billion of commerce using our paperless, real time
“apply and buy” technology. GreenSky is headquartered in Atlanta,
Georgia. For more information, visit

Forward-Looking Statements

This press release contains forward-looking statements that reflect our
current views with respect to, among other things, our operations and
financial performance; transaction volume; profitability; and bank
commitments. You generally can identify these statements by the use of
words such as “outlook,” “potential,” “continue,” “may,” “seek,”
“approximately,” “predict,” “believe,” “expect,” “plan,” “intend,”
“estimate” or “anticipate” and similar expressions or the negative
versions of these words or comparable words, as well as future or
conditional verbs such as “will,” “should,” “would,” “likely” and
“could.” These statements are subject to certain risks and uncertainties
that could cause actual results to differ materially from those included
in the forward-looking statements. These risks and uncertainties include
those risks described in our filings with the Securities and Exchange
Commission and include, but are not limited to, risks related to our
ability to retain existing, and attract new, merchants and Bank
Partners; our future financial performance, including trends in revenue,
cost of revenue, gross profit or gross margin, operating expenses, and
free cash flow; changes in market interest rates; increases in loan
delinquencies; our ability to operate successfully in a highly regulated
industry; the effect of management changes; cyberattacks and security
vulnerabilities in our products and services; and our ability to compete
successfully in highly competitive markets. The forward-looking
statements speak only as of the date on which they are made, and, except
to the extent required by federal securities laws, we disclaim any
obligation to update any forward-looking statement to reflect events or
circumstances after the date on which the statement is made or to
reflect the occurrence of unanticipated events. In light of these risks
and uncertainties, there is no assurance that the events or results
suggested by the forward-looking statements will in fact occur, and you
should not place undue reliance on these forward-looking statements.

Non-GAAP Financial Measures

This press release presents information about the Company’s Adjusted
EBITDA, which is a non-GAAP financial measure provided as a supplement
to the results provided in accordance with accounting principles
generally accepted in the United States of America (“GAAP”). We believe
that Adjusted EBITDA is one of the key financial indicators of our
business performance over the long term and provides useful information
regarding whether cash provided by operating activities is sufficient to
maintain and grow our business. We believe that this methodology for
determining Adjusted EBITDA can provide useful supplemental information
to help investors better understand the economics of our platform. We
are presenting this non-GAAP measure to assist investors in evaluating
our financial performance and because we believe that this measure
provides an additional tool for investors to use in comparing our core
financial performance over multiple periods with other companies in our


This non-GAAP measure is presented for supplemental informational
purposes only. This non-GAAP measure has a limitation as an analytical
tool and should not be considered in isolation from, or as a substitute
for, the analysis of other GAAP financial measures, such as net income.
The non-GAAP measures GreenSky uses may differ from the non-GAAP
measures used by other companies. A reconciliation of Adjusted EBITDA to
the most directly comparable GAAP financial measure is provided below.

Reconciliation of Adjusted EBITDA

(Dollars in thousands)


Year Ended
December 31,

Net income $ 127,980
Interest expense 23,584
Tax expense(1) 6,106
Depreciation and amortization 4,478
Equity-related expense(2) 6,054
Fair value change in servicing liabilities(3) 945
Non-recurring transaction expenses(4) 2,393
Adjusted EBITDA $ 171,540


(1) Includes both corporate and non-corporate tax expense.
Non-corporate tax expense is included within general and administrative
expenses in our Consolidated Statements of Operations. Prior to the IPO
and certain reorganization transactions, we did not have any corporate
income tax expense.


(2) Includes equity-based compensation to employees and
directors, as well as equity-based payments to non-employees.

(3) Includes the non-cash impact of the initial recognition
of servicing liabilities and subsequent fair value changes in such
servicing liabilities during the period presented.

(4) In 2018, non-recurring transaction expenses include
certain costs associated with certain reorganization transactions and
our IPO, which were not deferrable against the proceeds of the IPO.
Further, certain costs related to our March 2018 term loan upsizing were
expensed as incurred, rather than deferred against the balance of the
term loan and, therefore, are being added back to net income given the
non-recurring nature of these expenses.



Investor Relations
Rebecca Gardy
[email protected]

Sahin, Edelman
[email protected]

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