- Consolidated revenues of $592.8 million
- Earnings before taxes of $52.0 million
- Adjusted EBITDA of $75.0 million, increase of 44%
year-over-year
- Diluted EPS of $0.79; Non-GAAP Diluted EPS of $0.92, up 76.9%
year-over-year
- Progressive Leasing write-offs of 7.1%, down from 9.8% in Q2
2022
PROG Holdings, Inc. (NYSE:PRG), the fintech holding company for
Progressive Leasing, Vive Financial, Four Technologies, and Build
today announced financial results for the second quarter ended June
30, 2023.
"Our second quarter results exceeded our expectations, driven by
strong portfolio performance and disciplined SG&A management,"
said Steve Michaels, PROG Holdings' President and CEO. "The
stability of our lease portfolio and continuing favorable trends,
despite soft consumer demand in key leasable categories, gives us
the confidence to increase our full-year 2023 outlook. Furthermore,
the results we have achieved year-to-date and the results we expect
in the remainder of the year incorporate meaningful investments in
various initiatives which we believe support our strategic
long-term growth plans," concluded Michaels.
Consolidated revenues for the second quarter of 2023 were $592.8
million, a decrease of 8.7% from the same period in 2022, caused
primarily by the headwinds from Progressive Leasing’s Q2 2022
decisioning tightening, slow customer demand for leasable goods,
and continued year-over-year declines in the number of customers
choosing to utilize early lease buyout options. This decline in
revenues was partially offset by continued strong Progressive
Leasing customer payment behavior during the quarter.
Consolidated net earnings for the quarter were $37.2 million,
compared with $19.5 million in the prior year period. Adjusted
EBITDA for the quarter increased 44% to $75.0 million, or 13% of
revenues, compared with $52.2 million, or 8% of revenues for the
same period in 2022. The year-over-year growth in Adjusted EBITDA
was driven primarily by historically low 90-day buyout activity for
the period, strong customer payment behavior due to prior lease
decisioning tightening, and continued benefits from previous
cost-cutting measures.
Diluted earnings per share for the second quarter of 2023 were
$0.79, compared with $0.37 in the year ago period. On a non-GAAP
basis, diluted earnings per share were $0.92 in the second quarter
of 2023, compared with $0.52 for the same period in 2022. The
Company's weighted average shares outstanding assuming dilution in
the second quarter was 11.5% lower year-over-year.
Progressive Leasing Results
Progressive Leasing's second quarter GMV decreased 14.7% to
$421.2 million compared with the same period in 2022, primarily due
to the Company's tighter decisioning posture this year compared
with last year, and continued weakness in demand for consumer
durable goods. The provision for lease merchandise write-offs
declined to 7.1% of lease revenues in the second quarter of 2023,
due to continued portfolio management and strong customer payment
behavior. Delinquencies improved year-over-year as a result of the
Company's previous decisioning tightening. Gross margins also
benefited from fewer customers choosing to utilize 90-day buyout
options compared to the previous year's quarter.
Liquidity and Capital Allocation
PROG Holdings ended the second quarter of 2023 with cash of
$252.8 million and gross debt of $600 million. The Company
repurchased $35.4 million of its stock in the quarter at an average
price of $32.65 per share and has $265.4 million remaining under
its previously announced $1 billion share purchase program.
2023 Outlook
The Company is revising upwards its full year earnings and
revenue outlook and providing a Q3 2023 outlook for revenues, net
earnings, adjusted EBITDA, GAAP diluted EPS, and non-GAAP diluted
EPS. The primary factors driving the increase in PROG Holdings'
annual earnings outlook are the strength of the Company's earnings
in the first half of 2023 and the expectation that improved gross
margins from strong portfolio management will continue. This
outlook assumes a difficult operating environment with continued
soft demand for consumer durable goods, no material changes in the
Company's decisioning posture or portfolio performance, and no
impact from additional share purchases.
Revised Outlook
Previously Revised
Outlook
(In thousands, except per share
amounts)
Low
High
Low
High
PROG Holdings - Total Revenues
$
2,360,000
$
2,390,000
$
2,300,000
$
2,375,000
PROG Holdings - Net Earnings
125,500
133,000
99,500
112,500
PROG Holdings - Adjusted EBITDA
270,000
280,000
235,000
255,000
PROG Holdings - Diluted EPS
2.64
2.80
2.09
2.37
PROG Holdings - Diluted Non-GAAP EPS
3.10
3.25
2.50
2.77
Progressive Leasing - Total Revenues
2,295,000
2,320,000
2,235,000
2,305,000
Progressive Leasing - Earnings Before
Taxes
197,500
204,000
168,000
180,000
Progressive Leasing - Adjusted EBITDA
279,000
285,500
248,000
261,000
Vive - Total Revenues
65,000
70,000
65,000
70,000
Vive - Earnings Before Taxes
4,000
5,000
2,500
4,500
Vive - Adjusted EBITDA
7,000
8,500
5,000
8,000
Other - Loss Before Taxes
(24,000
)
(22,000
)
(26,000
)
(23,000
)
Other - Adjusted EBITDA
(16,000
)
(14,000
)
(18,000
)
(14,000
)
Three Months Ended September
30, 2023 Outlook
(In thousands, except per share
amounts)
Low
High
PROG Holdings - Total Revenues
$
560,000
$
575,000
PROG Holdings - Net Earnings
21,500
25,500
PROG Holdings - Adjusted EBITDA
55,000
60,000
PROG Holdings - Diluted EPS
0.46
0.55
PROG Holdings - Diluted Non-GAAP EPS
0.58
0.67
Conference Call and Webcast
The Company has scheduled a live webcast and conference call for
Wednesday, July 26th, 2023, at 8:30 A.M. ET to discuss its
financial results for the second quarter of 2023. To access the
live webcast, visit the Events and Presentations page of the
Company’s Investor Relations website,
https://investor.progholdings.com/.
About PROG Holdings, Inc.
PROG Holdings, Inc. (NYSE:PRG) is a fintech holding company
headquartered in Salt Lake City, UT, that provides transparent and
competitive payment options and inclusive consumer financial
products. The Company owns Progressive Leasing, a leading provider
of e-commerce, app-based, and in-store point-of-sale lease-to-own
solutions, Vive Financial, an omnichannel provider of second-look
revolving credit products, Four Technologies, provider of Buy Now,
Pay Later payment options, and Build, provider of personal credit
building products. More information about PROG Holdings and its
companies can be found at https://investor.progholdings.com/.
Forward Looking Statements:
Statements in this news release regarding our business that are
not historical facts are "forward-looking statements" that involve
risks and uncertainties which could cause actual results to differ
materially from those contained in the forward-looking statements.
Such forward-looking statements generally can be identified by the
use of forward-looking terminology, such as "continuing", "expect",
"believe", "outlook" and similar forward-looking terminology. These
risks and uncertainties include factors such as (i) continued
volatility and challenges in the macro environment and, in
particular, the unfavorable effects on our business of the rapid
increase in the rate of inflation currently being experienced in
the economy, which has not been seen in more than forty years,
significant increases in interest rates, and fears of a recession,
and the impact of those headwinds on: (a) consumer confidence and
customer demand for the merchandise that our POS partners sell; (b)
our customers’ disposable income and their ability to make the
lease and loan payments they owe the company; (c) the availability
of consumer credit; (d) our labor costs; and (e) our overall
financial performance and outlook; (ii) our businesses being
subject to extensive laws and regulations, including laws and
regulations unique to the industries in which our businesses
operate, that may subject them to government investigations and
significant monetary penalties and compliance-related burdens, as
well as an increased focus by federal, state and local regulators
on the industries within which our businesses operate, including
with respect to consumer protection, customer privacy, third party
and employee fraud and information security; (iii) deteriorating
macroeconomic conditions resulting in the algorithms and other
proprietary decisioning tools used in approving Progressive Leasing
and Vive customers for leases and loans no longer being indicative
of their ability to perform, which may limit the ability of those
businesses to avoid lease and loan charge-offs or may result in
their reserves being insufficient to cover actual losses; (iv) a
large percentage of the company’s revenues being concentrated with
several of Progressive Leasing’s key POS partners; (v) the risks
that Progressive Leasing will be unable to attract new POS partners
or retain and grow its business with its existing POS partners;
(vi) Vive’s and Four’s business models differing significantly from
Progressive Leasing’s, which creates specific and unique risks for
the Vive and Four businesses, including Vive’s reliance on two bank
partners to issue its credit products and Vive’s and Four’s
exposure to the unique regulatory risks associated with the laws
and regulations that apply to their businesses; (vii) the risks
that interruptions, inventory shortages and other factors affecting
the supply chains of our retail partners having a material and
adverse effect on several aspects of our performance; (viii) the
impact of the COVID-19 pandemic, including new variants,
sub-variants or additional waves of COVID-19 infections, on: (a)
demand for the lease-to-own products offered by our Progressive
Leasing segment, (b) Progressive Leasing’s point-of-sale or "POS"
partners, and Vive’s and Four’s merchant partners, (c) Progressive
Leasing’s, Vive’s and Four’s customers, including their ability and
willingness to satisfy their obligations under their lease
agreements and loan agreements, (d) Progressive Leasing’s POS
partners being able to obtain the merchandise their customers need
or desire, (e) our employees and labor needs, including our ability
to adequately staff our operations, (f) our financial and
operational performance, and (g) our liquidity; (ix) changes in the
enforcement of existing laws and regulations and the adoption of
new laws and regulations that may unfavorably impact our
businesses; (x) the risk that our capital allocation strategy,
including our current share repurchase program, will not be
effective at enhancing shareholder value; (xi) our cost reduction
initiatives may not be adequate or may have unintended consequences
that could be disruptive to our businesses; (xii) the loss of the
services of our key executives or our inability to attract and
retain key talent, particularly with respect to our information
technology function, may have a material adverse impact on our
operations; (xiii) increased competition from traditional and
virtual lease-to-own competitors and also from competitors of our
Vive segment; (xiv) adverse consequences to Progressive Leasing,
including additional monetary penalties and/or injunctive relief,
if it fails to comply with the terms of its 2020 settlement with
the FTC, as well as the possibility of other regulatory authorities
and third parties bringing legal actions against Progressive
Leasing based on the same allegations that led to the FTC
settlement; (xv) our increased level of indebtedness; (xvi) our
ability to protect confidential, proprietary, or sensitive
information, including the personal and confidential information of
our customers, which may be adversely affected by cyber-attacks,
employee or other internal misconduct, computer viruses, electronic
break-ins or "hacking", or similar disruptions, any one of which
could have a material adverse impact on our results of operations,
financial condition, and prospects; and (xvii) the other risks and
uncertainties discussed under "Risk Factors" in the Company’s
Annual Report on Form 10-K for the fiscal year ended December 31,
2022, filed with the SEC on February 22, 2023. Statements in this
press release that are "forward-looking" include without limitation
statements about: (i) the performance and stability of our lease
portfolio; (ii) our ability to continue to make investments in
initiatives to support our strategic long-term growth plans and the
outcomes of those initiatives; and (iii) our revised full year 2023
outlook and our third-quarter 2023 outlook. You are cautioned not
to place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. Except as required
by law, the Company undertakes no obligation to update these
forward-looking statements to reflect subsequent events or
circumstances after the date of this press release.
PROG Holdings, Inc.
Consolidated Statements of
Earnings
(In thousands, except per
share data)
(Unaudited)
Three Months Ended
(Unaudited)
Six Months Ended
June 30,
June 30,
2023
2022
2023
2022
REVENUES:
Lease Revenues and Fees
$
574,839
$
631,344
$
1,211,921
$
1,324,258
Interest and Fees on Loans Receivable
18,007
18,100
36,065
35,650
592,846
649,444
1,247,986
1,359,908
COSTS AND EXPENSES:
Depreciation of Lease Merchandise
384,874
439,113
820,313
936,124
Provision for Lease Merchandise
Write-offs
40,965
61,788
79,329
112,118
Operating Expenses
107,710
111,606
212,969
225,264
533,549
612,507
1,112,611
1,273,506
OPERATING PROFIT
59,297
36,937
135,375
86,402
Interest Expense, Net
(7,283
)
(9,608
)
(15,774
)
(19,237
)
EARNINGS BEFORE INCOME TAX
EXPENSE
52,014
27,329
119,601
67,165
INCOME TAX EXPENSE
14,796
7,845
34,350
20,546
NET EARNINGS
$
37,218
$
19,484
$
85,251
$
46,619
EARNINGS PER SHARE
Basic
$
0.80
$
0.37
$
1.81
$
0.86
Assuming Dilution
$
0.79
$
0.37
$
1.79
$
0.86
WEIGHTED AVERAGE SHARES
OUTSTANDING:
Basic
46,474
52,880
47,160
54,134
Assuming Dilution
46,896
52,961
47,514
54,326
PROG Holdings, Inc.
Consolidated Balance
Sheets
(In thousands, except share
data)
(Unaudited)
June 30, 2023
December 31,
2022
ASSETS:
Cash and Cash Equivalents
$
252,838
$
131,880
Accounts Receivable (net of allowances of
$65,544 in 2023 and $69,264 in 2022)
53,249
64,521
Lease Merchandise (net of accumulated
depreciation and allowances of $455,912 in 2023 and $467,355 in
2022)
548,886
648,043
Loans Receivable (net of allowances and
unamortized fees of $49,071 in 2023 and $53,635 in 2022)
122,812
130,966
Property and Equipment, Net
23,655
23,852
Operating Lease Right-of-Use Assets
10,585
11,875
Goodwill
296,061
296,061
Other Intangibles, Net
102,964
114,411
Income Tax Receivable
19,606
18,864
Deferred Income Tax Assets
2,852
2,955
Prepaid Expenses and Other Assets
49,549
48,481
Total Assets
$
1,483,057
$
1,491,909
LIABILITIES & SHAREHOLDERS’
EQUITY:
Accounts Payable and Accrued Expenses
$
130,841
$
135,025
Deferred Income Tax Liabilities
115,968
137,261
Customer Deposits and Advance Payments
32,633
37,074
Operating Lease Liabilities
18,350
21,122
Debt
591,616
590,966
Total Liabilities
889,408
921,448
SHAREHOLDERS' EQUITY:
Common Stock, Par Value $0.50 Per Share:
Authorized: 225,000,000 Shares at June 30, 2023 and December 31,
2022; Shares Issued: 82,078,654 at June 30, 2023 and December 31,
2022
41,039
41,039
Additional Paid-in Capital
343,016
338,814
Retained Earnings
1,239,486
1,154,235
1,623,541
1,534,088
Less: Treasury Shares at Cost
Common Stock: 36,368,322 Shares at June
30, 2023 and 34,044,102 at December 31, 2022
(1,029,892
)
(963,627
)
Total Shareholders’ Equity
593,649
570,461
Total Liabilities & Shareholders’
Equity
$
1,483,057
$
1,491,909
PROG Holdings, Inc.
Consolidated Statements of
Cash Flows
(In thousands)
(Unaudited)
Six Months Ended
June 30,
2023
2022
OPERATING ACTIVITIES:
Net Earnings
$
85,251
$
46,619
Adjustments to Reconcile Net Earnings to
Cash Provided by Operating Activities:
Depreciation of Lease Merchandise
820,313
936,124
Other Depreciation and Amortization
15,895
17,021
Provisions for Accounts Receivable and
Loan Losses
161,237
201,980
Stock-Based Compensation
12,260
9,040
Deferred Income Taxes
(21,190
)
(696
)
Non-Cash Lease Expense
(1,482
)
549
Other Changes, Net
(2,506
)
(3,748
)
Changes in Operating Assets and
Liabilities:
Additions to Lease Merchandise
(803,250
)
(951,751
)
Book Value of Lease Merchandise Sold or
Disposed
82,096
114,427
Accounts Receivable
(132,460
)
(188,921
)
Prepaid Expenses and Other Assets
(857
)
(5,216
)
Income Tax Receivable and Payable
(44
)
(571
)
Operating Lease Right-of-Use Assets and
Liabilities
—
(401
)
Accounts Payable and Accrued Expenses
(5,442
)
(9,841
)
Customer Deposits and Advance Payments
(4,441
)
(8,873
)
Cash Provided by Operating Activities
205,380
155,742
INVESTING ACTIVITIES:
Investments in Loans Receivable
(90,746
)
(92,741
)
Proceeds from Loans Receivable
84,491
76,244
Outflows on Purchases of Property and
Equipment
(4,388
)
(5,494
)
Proceeds from Property and Equipment
13
17
Proceeds from Acquisitions of
Businesses
—
7
Cash Used in Investing Activities
(10,630
)
(21,967
)
FINANCING ACTIVITIES:
Acquisition of Treasury Stock
(71,836
)
(176,475
)
Tender Offer Shares Repurchased and
Retired
—
199
Issuance of Stock Under Stock Option
Plans
606
663
Shares Withheld for Tax Payments
(2,533
)
(2,516
)
Debt Issuance Costs
(29
)
1,535
Cash Used in Financing Activities
(73,792
)
(176,594
)
Increase (Decrease) in Cash and Cash
Equivalents
120,958
(42,819
)
Cash and Cash Equivalents at Beginning of
Period
131,880
170,159
Cash and Cash Equivalents at End of
Period
$
252,838
$
127,340
Net Cash Paid During the Period:
Interest Expense
$
18,531
$
17,085
Income Taxes
$
53,624
$
19,475
PROG Holdings, Inc.
Quarterly Revenues by
Segment
(In thousands)
(Unaudited)
Three Months Ended
June 30, 2023
Progressive Leasing
Vive
Other
Consolidated Total
Lease Revenues and Fees
$
574,839
$
—
$
—
$
574,839
Interest and Fees on Loans Receivable
—
17,187
820
18,007
Total Revenues
$
574,839
$
17,187
$
820
$
592,846
(Unaudited)
Three Months Ended
June 30, 2022
Progressive Leasing
Vive
Other
Consolidated Total
Lease Revenues and Fees
$
631,344
$
—
$
—
$
631,344
Interest and Fees on Loans Receivable
—
17,518
582
18,100
Total Revenues
$
631,344
$
17,518
$
582
$
649,444
PROG Holdings, Inc.
Six Months Revenues by
Segment
(In thousands)
(Unaudited)
Six Months Ended
June 30, 2023
Progressive Leasing
Vive
Other
Consolidated Total
Lease Revenues and Fees
$
1,211,921
$
—
$
—
$
1,211,921
Interest and Fees on Loans Receivable
—
34,340
1,725
36,065
Total Revenues
$
1,211,921
$
34,340
$
1,725
$
1,247,986
(Unaudited)
Six Months Ended
June 30, 2022
Progressive Leasing
Vive
Other
Consolidated Total
Lease Revenues and Fees
$
1,324,258
$
—
$
—
$
1,324,258
Interest and Fees on Loans Receivable
—
34,634
1,016
35,650
Total Revenues
$
1,324,258
$
34,634
$
1,016
$
1,359,908
PROG Holdings, Inc.
Gross Merchandise Volume by
Quarter
(In thousands)
(Unaudited)
Three Months Ended June
30,
2023
2022
Progressive Leasing
$
421,220
$
494,003
Vive
39,850
47,003
Other
14,600
11,394
Total GMV
$
475,670
$
552,400
Use of Non-GAAP Financial Information:
Non-GAAP net earnings, non-GAAP diluted earnings per share, and
adjusted EBITDA are supplemental measures of our performance that
are not calculated in accordance with generally accepted accounting
principles in the United States ("GAAP"). Non-GAAP net earnings and
non-GAAP diluted earnings per share for the three and six months
ended June 30, 2023, full year 2023 revised outlook and third
quarter 2023 outlook exclude intangible amortization expense,
restructuring expenses, regulatory insurance recoveries, and
accrued interest on an uncertain tax position related to
Progressive Leasing's $175 million settlement with the FTC in 2020.
Non-GAAP net earnings and non-GAAP diluted earnings per share for
the three and six months ended June 30, 2022 exclude intangible
amortization expense, restructuring expenses, and accrued interest
on an uncertain tax position related to Progressive Leasing's $175
million settlement with the FTC in 2020. The amount for the
after-tax non-GAAP adjustment, which is tax effected using our
statutory tax rate, can be found in the reconciliation of net
earnings and earnings per share assuming dilution to non-GAAP net
earnings and earnings per share assuming dilution table in this
press release.
The Adjusted EBITDA figures presented in this press release are
calculated as the Company’s earnings before interest expense, net,
depreciation on property and equipment, amortization of intangible
assets and income taxes. Adjusted EBITDA for the three and six
months ended June 30, 2023, full year 2023 revised outlook and
third quarter 2023 outlook exclude stock-based compensation
expense, restructuring expenses, and regulatory insurance
recoveries. Adjusted EBITDA for the three and six months ended June
30, 2022 exclude stock-based compensation expense and restructuring
expenses. The amounts for these pre-tax non-GAAP adjustments can be
found in the three and six months ended segment EBITDA tables in
this press release.
Management believes that non-GAAP net earnings, non-GAAP diluted
earnings per share, and adjusted EBITDA provide relevant and useful
information, and are widely used by analysts, investors and
competitors in our industry as well as by our management in
assessing both consolidated and business unit performance.
Non-GAAP net earnings, non-GAAP diluted earnings, and adjusted
EBITDA provide management and investors with an understanding of
the results from the primary operations of our business by
excluding the effects of certain items that generally arose from
larger, one-time transactions that are not reflective of the
ordinary earnings activity of our operations or transactions that
have variability and volatility of the amount. We believe the
exclusion of stock-based compensation expense provides for a better
comparison of our operating results with our peer companies as the
calculations of stock-based compensation vary from period to period
and company to company due to different valuation methodologies,
subjective assumptions and the variety of award types. This measure
may be useful to an investor in evaluating the underlying operating
performance of our business.
Adjusted EBITDA also provides management and investors with an
understanding of one aspect of earnings before the impact of
investing and financing charges and income taxes. These measures
may be useful to an investor in evaluating our operating
performance because the measures:
- Are widely used by investors to measure a company’s operating
performance without regard to items excluded from the calculation
of such measure, which can vary substantially from company to
company depending upon accounting methods, book value of assets,
capital structure and the method by which assets were acquired,
among other factors.
- Are used by rating agencies, lenders and other parties to
evaluate our creditworthiness.
- Are used by our management for various purposes, including as a
measure of performance of our operating entities and as a basis for
strategic planning and forecasting.
Non-GAAP financial measures, however, should not be used as a
substitute for, or considered superior to, measures of financial
performance prepared in accordance with GAAP, such as the Company’s
GAAP basis net earnings and diluted earnings per share and the GAAP
revenues and earnings before income taxes of the Company’s
segments, which are also presented in the press release. Further,
we caution investors that amounts presented in accordance with our
definitions of non-GAAP net earnings, non-GAAP diluted earnings per
share, and adjusted EBITDA may not be comparable to similar
measures disclosed by other companies, because not all companies
and analysts calculate these measures in the same manner.
PROG Holdings, Inc.
Reconciliation of Net Earnings
and Earnings Per Share Assuming Dilution to Non-GAAP Net Earnings
and Earnings Per Share Assuming Dilution
(In thousands, except per
share amounts)
(Unaudited)
(Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2023
2022
2023
2022
Net Earnings
$
37,218
$
19,484
$
85,251
$
46,619
Add: Intangible Amortization Expense
5,723
5,723
11,447
11,447
Add: Restructuring Expense
963
4,328
1,720
4,328
Less: Tax Impact of Adjustments(1)
(1,738
)
(2,613
)
(3,287
)
(4,101
)
Add: Accrued Interest on FTC Settlement
Uncertain Tax Position
970
647
1,940
1,186
Less: Regulatory Insurance Recoveries
—
—
(525
)
—
Non-GAAP Net Earnings
$
43,136
$
27,569
$
96,546
$
59,479
Earnings Per Share Assuming Dilution
$
0.79
$
0.37
$
1.79
$
0.86
Add: Intangible Amortization Expense
0.12
0.11
0.24
0.21
Add: Restructuring Expense
0.02
0.08
0.04
0.08
Less: Tax Impact of Adjustments(1)
(0.04
)
(0.05
)
(0.07
)
(0.08
)
Add: Accrued Interest on FTC Settlement
Uncertain Tax Position
0.02
0.01
0.04
0.02
Less: Regulatory Insurance Recoveries
—
—
(0.01
)
—
Non-GAAP Earnings Per Share Assuming
Dilution(2)
$
0.92
$
0.52
$
2.03
$
1.09
Weighted Average Shares Outstanding
Assuming Dilution
46,896
52,961
47,514
54,326
(1)
Adjustments are tax-effected
using an assumed statutory tax rate of 26%.
(2)
In some cases, the sum of
individual EPS amounts may not equal total non-GAAP EPS
calculations due to rounding.
PROG Holdings, Inc.
Non-GAAP Financial
Information
Quarterly Segment
EBITDA
(In thousands)
(Unaudited)
Three Months Ended
June 30, 2023
Progressive Leasing
Vive
Other
Consolidated Total
Net Earnings
$
37,218
Income Tax Expense(1)
14,796
Earnings (Loss) Before Income Tax
Expense
$
55,422
$
1,758
$
(5,166
)
52,014
Interest Expense, Net
7,117
166
—
7,283
Depreciation
1,795
182
216
2,193
Amortization
5,421
—
302
5,723
EBITDA
69,755
2,106
(4,648
)
67,213
Stock-Based Compensation
4,899
294
1,652
6,845
Restructuring Expense
963
—
—
963
Adjusted EBITDA
$
75,617
$
2,400
$
(2,996
)
$
75,021
(1)
Taxes are calculated on a consolidated basis and are not
identifiable by Company Segment.
(Unaudited)
Three Months Ended
June 30, 2022
Progressive Leasing
Vive
Other
Consolidated Total
Net Earnings
$
19,484
Income Tax Expense(1)
7,845
Earnings (Loss) Before Income Tax
Expense
$
27,383
$
3,355
$
(3,409
)
27,329
Interest Expense, Net
9,525
83
—
9,608
Depreciation
2,524
195
97
2,816
Amortization
5,421
—
302
5,723
EBITDA
44,853
3,633
(3,010
)
45,476
Stock-Based Compensation
2,643
99
(325
)
2,417
Restructuring Expense
3,673
655
—
4,328
Adjusted EBITDA
$
51,169
$
4,387
$
(3,335
)
$
52,221
(1)
Taxes are calculated on a consolidated
basis and are not identifiable by Company Segment.
PROG Holdings, Inc.
Non-GAAP Financial
Information
Six Months Segment
EBITDA
(In thousands)
(Unaudited)
Six Months Ended
June 30, 2023
Progressive Leasing
Vive
Other
Consolidated Total
Net Earnings
$
85,251
Income Tax Expense(1)
34,350
Earnings (Loss) Before Income Tax
Expense
$
126,473
$
3,921
$
(10,793
)
119,601
Interest Expense, Net
15,317
457
—
15,774
Depreciation
3,700
350
398
4,448
Amortization
10,842
—
605
11,447
EBITDA
156,332
4,728
(9,790
)
151,270
Stock-Based Compensation
8,452
582
3,226
12,260
Restructuring Expense
1,720
—
—
1,720
Regulatory Insurance Recoveries
(525
)
—
—
(525
)
Adjusted EBITDA
$
165,979
$
5,310
$
(6,564
)
$
164,725
(1)
Taxes are calculated on a consolidated basis and are not
identifiable by Company Segment.
(Unaudited)
Six Months Ended
June 30, 2022
Progressive Leasing
Vive
Other
Consolidated Total
Net Earnings
$
46,619
Income Tax Expense(1)
20,546
Earnings (Loss) Before Income Tax
Expense
$
69,464
$
7,778
$
(10,077
)
67,165
Interest Expense, Net
19,048
189
—
19,237
Depreciation
5,053
392
129
5,574
Amortization
10,842
—
605
11,447
EBITDA
104,407
8,359
(9,343
)
103,423
Stock-Based Compensation
6,601
187
2,252
9,040
Restructuring Expense
3,673
655
—
4,328
Adjusted EBITDA
$
114,681
$
9,201
$
(7,091
)
$
116,791
(1)
Taxes are calculated on a
consolidated basis and are not identifiable by Company Segment.
PROG Holdings, Inc.
Non-GAAP Financial
Information
Reconciliation of Revised Full
Year 2023 Outlook for Adjusted EBITDA
(In thousands)
Fiscal Year 2023 Ranges
Progressive Leasing
Vive
Other
Consolidated Total
Estimated Net Earnings
$125,500 - $133,000
Income Tax Expense(1)
52,000 - 54,000
Projected Earnings (Loss) Before Income
Tax Expense
$197,500 - $204,000
$4,000 - $5,000
$(24,000) - $(22,000)
177,500 - 187,000
Interest Expense, Net
31,500 - 30,500
1,000
—
32,500 - 31,500
Depreciation
9,000
1,000
1,000
11,000
Amortization
21,500
—
1,000
22,500
Projected EBITDA
259,500 - 265,000
6,000 - 7,000
(22,000) - (20,000)
243,500 - 252,000
Stock-Based Compensation
18,500 - 19,500
1,000 - 1,500
6,000
25,500 - 27,000
Restructuring Expense/Regulatory Insurance
Recoveries
1,000
—
—
1,000
Projected Adjusted EBITDA
$279,000 - $285,500
$7,000 - $8,500
$(16,000) - $(14,000)
$270,000 - $280,000
(1)
Taxes are calculated on a
consolidated basis and are not identifiable by Company Segment.
PROG Holdings, Inc.
Non-GAAP Financial
Information
Reconciliation of Previously
Revised Full Year 2023 Outlook for Adjusted EBITDA
(In thousands)
Fiscal Year 2023 Ranges
Progressive Leasing
Vive
Other
Consolidated Total
Estimated Net Earnings
$99,500 - $112,500
Income Tax Expense(1)
45,000 - 49,000
Projected Earnings (Loss) Before Income
Tax Expense
$168,000 - $180,000
$2,500 - $4,500
$(26,000)-$(23,000)
144,500 - 161,500
Interest Expense, Net
32,000
1,000
—
33,000
Depreciation
9,000
1,000
1,500
11,500
Amortization
21,000
—
1,500
22,500
Projected EBITDA
230,000 - 242,000
4,500 - 6,500
(23,000)-(20,000)
211,500 - 228,500
Stock-Based Compensation
18,000 - 19,000
500 - 1,500
5,000 - 6,000
23,500 - 26,500
Projected Adjusted EBITDA
$248,000 - $261,000
$5,000 - $8,000
$(18,000)-$(14,000)
$235,000 - $255,000
(1)
Taxes are calculated on a
consolidated basis and are not identifiable by Company Segment.
PROG Holdings, Inc.
Non-GAAP Financial
Information
Reconciliation of the Three
Months Ended September 30, 2023 Outlook for Adjusted EBITDA
(In thousands)
Three Months Ended September 30,
2023 Outlook
Consolidated Total
Estimated Net Earnings
$21,500 - $25,500
Income Tax Expense(1)
9,500 - 10,500
Projected Earnings Before Income Tax
Expense
31,000 - 36,000
Interest Expense, Net
8,000 - 7,500
Depreciation
3,000
Amortization
6,000
Projected EBITDA
48,000 - 52,500
Stock-Based Compensation
7,000 - 7,500
Projected Adjusted EBITDA
$55,000 - $60,000
(1)
Taxes are calculated on a
consolidated basis and are not identifiable by Company
segments.
PROG Holdings, Inc.
Reconciliation of Revised Full
Year 2023 Outlook for Earnings Per Share
Assuming Dilution to Non-GAAP
Earnings Per Share Assuming Dilution
Full Year 2023 Range
Low
High
Projected Earnings Per Share Assuming
Dilution
$
2.64
$
2.80
Add: Projected Intangible Amortization
Expense
0.48
0.48
Add: Projected Interest on FTC Settlement
Uncertain Tax Position
0.08
0.08
Add: Restructuring Expense/Regulatory
Insurance Recoveries
0.03
0.03
Subtract: Tax Effect on Non-GAAP
Adjustments(1)
(0.13
)
(0.13
)
Projected Non-GAAP Earnings Per Share
Assuming Dilution(2)
$
3.10
$
3.25
(1)
Adjustments are tax-effected
using an assumed statutory tax rate of 26%.
(2)
In some cases, the sum of
individual EPS amounts may not equal total non-GAAP EPS
calculations due to rounding.
PROG Holdings, Inc.
Reconciliation of Previously
Revised Full Year 2023 Outlook for Earnings Per Share
Assuming Dilution to Non-GAAP
Earnings Per Share Assuming Dilution
Full Year 2023 Range
Low
High
Projected Earnings Per Share Assuming
Dilution
$
2.09
$
2.37
Add: Projected Intangible Amortization
Expense
0.47
0.47
Add: Projected Interest on FTC Settlement
Uncertain Tax Position
0.06
0.06
Subtract: Tax Effect on Non-GAAP
Adjustments(1)
(0.12
)
(0.12
)
Projected Non-GAAP Earnings Per Share
Assuming Dilution(2)
$
2.50
$
2.77
(1)
Adjustments are tax-effected
using an assumed statutory tax rate of 26%.
(2)
In some cases, the sum of
individual EPS amounts may not equal total non-GAAP EPS
calculations due to rounding.
PROG Holdings, Inc.
Reconciliation of the Three
Months Ended September 30, 2023 Outlook for Earnings Per
Share
Assuming Dilution to Non-GAAP
Earnings Per Share Assuming Dilution
Three Months Ended September 30,
2023
Low
High
Projected Earnings Per Share Assuming
Dilution
$
0.46
$
0.55
Add: Projected Intangible Amortization
Expense
0.13
0.13
Add: Projected Interest on FTC Settlement
Uncertain Tax Position
0.02
0.02
Subtract: Tax Effect on Non-GAAP
Adjustments(1)
(0.03
)
(0.03
)
Projected Non-GAAP Earnings Per Share
Assuming Dilution(2)
$
0.58
$
0.67
(1)
Adjustments are tax-effected
using an assumed statutory tax rate of 26%.
(2)
In some cases, the sum of
individual EPS amounts may not equal total non-GAAP EPS
calculations due to rounding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230726663637/en/
Investor Contact John Baugh, CFA Vice President, Investor
Relations john.baugh@progleasing.com
Media Contact Mark Delcorps Director, Corporate
Communications media@progholdings.com
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