- Consolidated revenues of $592.2 million; Earnings before taxes
of $48.3 million
- Adjusted EBITDA of $72.3 million
- Diluted EPS of $0.77; Non-GAAP Diluted EPS of $0.92
- Progressive Leasing GMV of $454.5 million, 7.9% growth
year-over-year
- Raises full year consolidated revenue and earnings outlook
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, 2024.
"We are pleased to report a strong second quarter that exceeded
our outlook on all key metrics, particularly on GMV, which grew
7.9% year-over-year" said PROG Holdings President and CEO Steve
Michaels. "Second quarter GMV growth reflects our continued
investment in marketing, sales, and technology, and we believe we
are just beginning to see the benefits of these efforts.
Additionally, our application funnel improved as credit supply
above us has tightened. Despite a continued soft retail backdrop in
our leasable categories, we were able to grow GMV and improve our
balance of share at retail partners across both national and
regional accounts. As reflected in our revised outlook, we expect
the momentum we have seen in GMV to continue in the third quarter
and drive year-over-year revenue growth in the second half of 2024.
We are excited about the positive developments in our GMV
trajectory and our ability to effectively manage our portfolio
performance and spend levels to deliver shareholder value,"
concluded Michaels.
Consolidated Results
Consolidated revenues for the second quarter of 2024 remained
relatively flat at $592.2 million, a decrease of 0.1% from the same
period in 2023.
Consolidated net earnings for the quarter were $33.8 million,
compared with $37.2 million in the prior year period. The decline
in net earnings was primarily driven by headwinds from portfolio
performance returning to more normalized pre-pandemic levels, a
smaller portfolio size during the quarter, and $2.9 million of
restructuring expense related to our cost reduction actions during
the second quarter of 2024. Adjusted EBITDA for the quarter
decreased 3.7% to $72.3 million, or 12.2% of revenues, compared
with $75.0 million, or 12.7% of revenues for the same period in
2023. The year-over-year decline in adjusted EBITDA was driven
primarily by headwinds from portfolio performance returning to
pre-pandemic levels, and a smaller portfolio size during the
quarter, partially offset by a decrease in Progressive Leasing's
SG&A due to cost reduction actions executed in the first
quarter of 2024, along with disciplined spending.
Diluted earnings per share for the second quarter of 2024 were
$0.77, compared with $0.79 in the year ago period. On a non-GAAP
basis, diluted earnings per share were $0.92 in the second quarters
of 2024 and 2023. The Company's weighted average shares outstanding
assuming dilution in the second quarter was 6.8% lower
year-over-year.
Progressive Leasing Results
Progressive Leasing's second quarter GMV of $454.5 million was
up 7.9% compared to the same period in 2023. The provision for
lease merchandise write-offs for the quarter was 7.7%, within the
Company's 6%-8% targeted annual range.
Liquidity and Capital Allocation
PROG Holdings ended the second quarter of 2024 with cash of
$250.1 million and gross debt of $600 million. The Company
repurchased $36.7 million of its stock in the quarter at an average
price of $35.67 per share, leaving $438.8 million of repurchase
authorization under its $500 million share repurchase program.
Additionally, the Company paid a cash dividend of $0.12 per
share.
2024 Outlook
PROG Holdings is updating its full year 2024 outlook for revenue
and earnings as well as providing its outlook for revenues, net
earnings, adjusted EBITDA, GAAP diluted EPS and non-GAAP diluted
EPS for the third quarter of 2024. This outlook assumes a
continuation of the benefits from tightened credit above us, a
difficult operating environment with soft demand for leasable
consumer goods, no material changes in the Company's decisioning
posture, no material increase in the unemployment rate for our
consumer base, an effective tax rate for non-GAAP EPS of
approximately 28%, and no impact from additional share
repurchases.
Revised 2024 Outlook
Previous 2024 Outlook
(In thousands, except per share
amounts)
Low
High
Low
High
PROG Holdings - Total Revenues
$
2,400,000
$
2,450,000
$
2,285,000
$
2,360,000
PROG Holdings - Net Earnings
110,500
116,000
97,500
108,000
PROG Holdings - Adjusted EBITDA
265,000
275,000
240,000
255,000
PROG Holdings - Diluted EPS
2.52
2.68
2.18
2.43
PROG Holdings - Diluted Non-GAAP EPS
3.25
3.40
2.85
3.10
Progressive Leasing - Total Revenues
2,325,000
2,355,000
2,210,000
2,265,000
Progressive Leasing - Earnings Before
Taxes
178,000
182,000
159,000
169,000
Progressive Leasing - Adjusted EBITDA
273,500
278,500
251,000
261,000
Vive - Total Revenues
55,000
65,000
55,000
65,000
Vive - Earnings Before Taxes
1,500
3,000
1,500
3,000
Vive - Adjusted EBITDA
3,000
5,000
3,000
5,000
Other - Total Revenues
20,000
30,000
20,000
30,000
Other - Loss Before Taxes
(20,000
)
(18,000
)
(20,000
)
(18,000
)
Other - Adjusted EBITDA
(11,500
)
(8,500
)
(14,000
)
(11,000
)
Three Months Ended
September 30, 2024 Outlook
(In thousands, except per share
amounts)
Low
High
PROG Holdings - Total Revenues
$
590,000
$
605,000
PROG Holdings - Net Earnings
27,000
30,000
PROG Holdings - Adjusted EBITDA
60,000
65,000
PROG Holdings - Diluted EPS
0.61
0.71
PROG Holdings - Diluted Non-GAAP EPS
0.70
0.80
Conference Call and Webcast
The Company has scheduled a live webcast and conference call for
Wednesday, July 24, 2024, at 8:30 A.M. ET to discuss its financial
results for the second quarter of 2024. 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 to consumers. 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, a provider of Buy Now, Pay Later payment options
through its platform, Four, and Build, provider of personal credit
building products. More information on 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 "continue", "believe",
"expects", "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 significant
inflation, elevated 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, in
particular consumer durables; (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; and (d) 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) the
impact of the cybersecurity incident experienced by Progressive
Leasing in September 2023 and expenses incurred in connection with
responding to the matter, including the litigation filed in
response to that incident, or any regulatory proceedings that may
result from the incident; (v) a large percentage of the Company’s
revenues being concentrated with several of Progressive Leasing’s
key POS partners; (vi) the risks that Progressive Leasing will be
unable to attract new POS partners or retain and grow its business
with its existing POS partners; (vii) Vive’s and Four’s business
models differing significantly from Progressive Leasing’s, which
creates specific and unique risks for each of the Vive and Four
businesses, including Vive’s reliance on a limited number of bank
partners to issue its credit products and each of Vive’s and Four’s
exposure to the unique regulatory risks associated with the laws
and regulations that apply to each of their businesses; (viii) our
ability to continue 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; (ix) our
cost reduction initiatives may not be adequate or may have
unintended consequences that could be disruptive to our businesses,
including with respect to our global workforce strategy; (x) the
risk that our capital allocation strategy, including our current
stock repurchase and dividend programs, as well as any future debt
repurchase program, will not be effective at enhancing shareholder
value and may have an adverse impact on our cash reserves; (xi) 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; (xii) increased competition from traditional and
virtual lease-to-own competitors and also from competitors of our
Vive segment; (xiii) the transactions offered by our Progressive
Leasing, Vive and/or Four businesses may be negatively
characterized by government officials, consumer advocacy groups or
the media; (xiv) real or perceived software or system errors,
failures, bugs, defects or outages, including those that may be
caused by third-party vendors, may adversely affect Progressive
Leasing, Vive or Four; and (xv) 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, 2023, filed with
the SEC on February 21, 2024. Statements in this press release that
are "forward-looking" include without limitation statements about:
(i) the benefits we expect from our marketing, sales and technology
investments, including the timing of those benefits; (ii) our
expectations regarding GMV growth for the quarter ending September
30, 2024 and revenue growth for the second half of 2024; (iii) our
ability to continue investing in our business, including with
respect to marketing, sales and technology initiatives; (iv) our
ability to continue to effectively manage our portfolio and
spending levels to deliver shareholder value; and (v) our revised
full year 2024 outlook and our third quarter 2024 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,
2024
2023
2024
2023
REVENUES:
Lease Revenues and Fees
$
570,516
$
574,839
$
1,191,066
$
1,211,921
Interest and Fees on Loans Receivable
21,645
18,007
42,965
36,065
592,161
592,846
1,234,031
1,247,986
COSTS AND EXPENSES:
Depreciation of Lease Merchandise
384,799
384,874
816,370
820,313
Provision for Lease Merchandise
Write-offs
43,783
40,965
86,924
79,329
Operating Expenses
107,901
107,710
235,242
212,969
536,483
533,549
1,138,536
1,112,611
OPERATING PROFIT
55,678
59,297
95,495
135,375
Interest Expense, Net
(7,339
)
(7,283
)
(15,589
)
(15,774
)
EARNINGS BEFORE INCOME TAX
EXPENSE
48,339
52,014
79,906
119,601
INCOME TAX EXPENSE
14,565
14,796
24,166
34,350
NET EARNINGS
$
33,774
$
37,218
$
55,740
$
85,251
EARNINGS PER SHARE
Basic
$
0.79
$
0.80
$
1.29
$
1.81
Assuming Dilution
$
0.77
$
0.79
$
1.26
$
1.79
CASH DIVIDENDS DECLARED PER
SHARE:
Common Stock
$
0.12
$
—
$
0.24
$
—
WEIGHTED AVERAGE SHARES
OUTSTANDING:
Basic
42,955
46,474
43,325
47,160
Assuming Dilution
43,721
46,896
44,124
47,514
PROG Holdings, Inc.
Consolidated Balance
Sheets
(In thousands, except share
data)
(Unaudited)
June 30, 2024
December 31,
2023
ASSETS:
Cash and Cash Equivalents
$
250,134
$
155,416
Accounts Receivable (net of allowances of
$64,682 in 2024 and $64,180 in 2023)
61,453
67,879
Lease Merchandise (net of accumulated
depreciation and allowances of $434,348 in 2024 and $423,466 in
2023)
563,594
633,427
Loans Receivable (net of allowances and
unamortized fees of $48,937 in 2024 and $50,022 in 2023)
119,322
126,823
Property and Equipment, Net
21,505
24,104
Operating Lease Right-of-Use Assets
4,116
9,271
Goodwill
296,061
296,061
Other Intangibles, Net
81,776
91,664
Income Tax Receivable
10,354
32,918
Deferred Income Tax Assets
2,368
2,981
Prepaid Expenses and Other Assets
50,024
50,711
Total Assets
$
1,460,707
$
1,491,255
LIABILITIES & SHAREHOLDERS’
EQUITY:
Accounts Payable and Accrued Expenses
$
150,337
$
151,259
Deferred Income Tax Liabilities
87,252
104,838
Customer Deposits and Advance Payments
34,746
35,713
Operating Lease Liabilities
13,605
15,849
Debt
592,914
592,265
Total Liabilities
878,854
899,924
SHAREHOLDERS' EQUITY:
Common Stock, Par Value $0.50 Per Share:
Authorized: 225,000,000 Shares at June 30, 2024 and December 31,
2023; Shares Issued: 82,078,654 at June 30, 2024 and December 31,
2023
41,039
41,039
Additional Paid-in Capital
347,552
352,421
Retained Earnings
1,338,201
1,293,073
1,726,792
1,686,533
Less: Treasury Shares at Cost
Common Stock: 39,763,190 Shares at June
30, 2024 and 38,404,527 at December 31, 2023
(1,144,939
)
(1,095,202
)
Total Shareholders’ Equity
581,853
591,331
Total Liabilities & Shareholders’
Equity
$
1,460,707
$
1,491,255
PROG Holdings, Inc.
Consolidated Statements of
Cash Flows
(In thousands)
(Unaudited)
Six Months Ended June
30,
2024
2023
OPERATING ACTIVITIES:
Net Earnings
$
55,740
$
85,251
Adjustments to Reconcile Net Earnings to
Cash Provided by Operating Activities:
Depreciation of Lease Merchandise
816,370
820,313
Other Depreciation and Amortization
14,515
15,895
Provisions for Accounts Receivable and
Loan Losses
174,822
161,237
Stock-Based Compensation
13,737
12,260
Deferred Income Taxes
(16,973
)
(21,190
)
Impairment of Assets
6,018
—
Non-Cash Lease Expense
(1,603
)
(1,482
)
Other Changes, Net
(155
)
(2,506
)
Changes in Operating Assets and
Liabilities:
Additions to Lease Merchandise
(836,084
)
(803,250
)
Book Value of Lease Merchandise Sold or
Disposed
89,549
82,096
Accounts Receivable
(145,312
)
(132,460
)
Prepaid Expenses and Other Assets
377
(857
)
Income Tax Receivable and Payable
26,206
(44
)
Accounts Payable and Accrued Expenses
(5,113
)
(5,442
)
Customer Deposits and Advance Payments
(967
)
(4,441
)
Cash Provided by Operating Activities
191,127
205,380
INVESTING ACTIVITIES:
Investments in Loans Receivable
(172,513
)
(90,746
)
Proceeds from Loans Receivable
158,644
84,491
Outflows on Purchases of Property and
Equipment
(3,999
)
(4,388
)
Other Proceeds
46
13
Cash Used in Investing Activities
(17,822
)
(10,630
)
FINANCING ACTIVITIES:
Dividends Paid
(10,346
)
—
Acquisition of Treasury Stock
(61,177
)
(71,836
)
Issuance of Stock Under Stock Option and
Employee Purchase Plans
799
606
Cash Paid for Shares Withheld for Employee
Taxes
(7,863
)
(2,533
)
Debt Issuance Costs
—
(29
)
Cash Used in Financing Activities
(78,587
)
(73,792
)
Increase in Cash and Cash Equivalents
94,718
120,958
Cash and Cash Equivalents at Beginning of
Period
155,416
131,880
Cash and Cash Equivalents at End of
Period
$
250,134
$
252,838
Net Cash Paid During the Period:
Interest
$
18,461
$
18,531
Income Taxes
$
12,728
$
53,624
PROG Holdings, Inc.
Quarterly Revenues by
Segment
(In thousands)
(Unaudited)
Three Months Ended
June 30, 2024
Progressive Leasing
Vive
Other
Consolidated Total
Lease Revenues and Fees
$
570,516
$
—
$
—
$
570,516
Interest and Fees on Loans Receivable
—
15,421
6,224
21,645
Total Revenues
$
570,516
$
15,421
$
6,224
$
592,161
(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
PROG Holdings, Inc.
Six Months Revenues by
Segment
(In thousands)
(Unaudited)
Six Months Ended
June 30, 2024
Progressive Leasing
Vive
Other
Consolidated Total
Lease Revenues and Fees
$
1,191,066
$
—
$
—
$
1,191,066
Interest and Fees on Loans Receivable
—
31,471
11,494
42,965
Total Revenues
$
1,191,066
$
31,471
$
11,494
$
1,234,031
(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
PROG Holdings, Inc.
Gross Merchandise Volume by
Quarter
(In thousands)
(Unaudited)
Three Months Ended June
30,
2024
2023
Progressive Leasing
$
454,508
$
421,220
Vive
35,757
39,850
Other
56,139
14,600
Total GMV
$
546,404
$
475,670
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 diluted earnings
per share for the full year 2024 outlook excludes intangible
amortization expense, restructuring expenses, costs related to the
cybersecurity incident, and accrued interest on an uncertain tax
position related to Progressive Leasing's $175 million settlement
with the FTC in 2020. Non-GAAP diluted earnings per share for the
third quarter 2024 outlook excludes intangible amortization expense
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, 2024 exclude intangible
amortization expense, restructuring expenses, costs related to the
cybersecurity incident, 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, 2023
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. 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, 2024 and full year 2024 outlook excludes
stock-based compensation expense, restructuring expenses, and costs
related to the cybersecurity incident. Adjusted EBITDA for the
three and six months ended June 30, 2023 excludes stock-based
compensation expense, restructuring expenses, and regulatory
insurance recoveries. Adjusted EBITDA for third quarter 2024
outlook excludes stock-based compensation expense. The amounts for
these pre-tax non-GAAP adjustments can be found in the 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,
2024
2023
2024
2023
Net Earnings
$
33,774
$
37,218
$
55,740
$
85,251
Add: Intangible Amortization Expense
4,239
5,723
9,889
11,447
Add: Restructuring Expense
2,886
963
20,900
1,720
Add: Costs Related to the Cybersecurity
Incident
116
—
232
—
Less: Regulatory Insurance Recoveries
—
—
—
(525
)
Less: Tax Impact of Adjustments(1)
(1,883
)
(1,738
)
(8,066
)
(3,287
)
Add: Accrued Interest on FTC Settlement
Uncertain Tax Position
1,078
970
2,156
1,940
Non-GAAP Net Earnings
$
40,210
$
43,136
$
80,851
$
96,546
Earnings Per Share Assuming Dilution
$
0.77
$
0.79
$
1.26
$
1.79
Add: Intangible Amortization Expense
0.10
0.12
0.23
0.24
Add: Restructuring Expense
0.07
0.02
0.47
0.04
Add: Costs Related to the Cybersecurity
Incident
—
—
0.01
—
Less: Regulatory Insurance Recoveries
—
—
—
(0.01
)
Less: Tax Impact of Adjustments(1)
(0.04
)
(0.04
)
(0.18
)
(0.07
)
Add: Accrued Interest on FTC Settlement
Uncertain Tax Position
0.02
0.02
0.05
0.04
Non-GAAP Earnings Per Share Assuming
Dilution(2)
$
0.92
$
0.92
$
1.83
$
2.03
Weighted Average Shares Outstanding
Assuming Dilution
43,721
46,896
44,124
47,514
(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, 2024
Progressive Leasing
Vive
Other
Consolidated Total
Net Earnings
$
33,774
Income Tax Expense(1)
14,565
Earnings (Loss) Before Income Tax
Expense
$
53,966
$
631
$
(6,258
)
48,339
Interest Expense, Net
7,655
—
(316
)
7,339
Depreciation
1,651
166
441
2,258
Amortization
4,009
—
230
4,239
EBITDA
67,281
797
(5,903
)
62,175
Stock-Based Compensation
6,135
360
600
7,095
Restructuring Expense
258
—
2,628
2,886
Costs Related to the Cybersecurity
Incident
116
—
—
116
Adjusted EBITDA
$
73,790
$
1,157
$
(2,675
)
$
72,272
(1)
Taxes are calculated on a consolidated
basis and are not identifiable by Company segment.
(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.
PROG Holdings, Inc.
Non-GAAP Financial
Information
Six Month Segment
EBITDA
(In thousands)
(Unaudited)
Six Months Ended
June 30, 2024
Progressive Leasing
Vive
Other
Consolidated Total
Net Earnings
$
55,740
Income Tax Expense(1)
24,166
Earnings (Loss) Before Income Tax
Expense
$
89,419
$
1,549
$
(11,062
)
79,906
Interest Expense, Net
16,222
—
(633
)
15,589
Depreciation
3,461
332
833
4,626
Amortization
9,430
—
459
9,889
EBITDA
118,532
1,881
(10,403
)
110,010
Stock-Based Compensation
10,846
698
2,193
13,737
Restructuring Expense
18,272
—
2,628
20,900
Costs Related to the Cybersecurity
Incident
232
—
—
232
Adjusted EBITDA
$
147,882
$
2,579
$
(5,582
)
$
144,879
(1)
Taxes are calculated on a consolidated
basis and are not identifiable by Company segment.
(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.
PROG Holdings, Inc.
Non-GAAP Financial
Information
Reconciliation of Revised Full
Year 2024 Outlook for Adjusted EBITDA
(In thousands)
Fiscal Year 2024
Ranges
Progressive Leasing
Vive
Other
Consolidated Total
Estimated Net Earnings
$110,500 - $116,000
Income Tax Expense(1)
49,000 - 51,000
Projected Earnings (Loss) Before Income
Tax Expense
$178,000 - $182,000
$1,500 - $3,000
$(20,000) - $(18,000)
159,500 - 167,000
Interest Expense, Net
31,000
—
(1,000)
30,000
Depreciation
7,000
500
2,000
9,500
Amortization
17,000
—
1,000
18,000
Projected EBITDA
233,000 - 237,000
2,000 - 3,500
(18,000) - (16,000)
217,000 - 224,500
Stock-Based Compensation
22,000 - 23,000
1,000 - 1,500
4,000 - 5,000
27,000 - 29,500
Restructuring Expense
18,500
—
2,500
21,000
Projected Adjusted EBITDA
$273,500 - $278,500
$3,000 - $5,000
$(11,500) - $(8,500)
$265,000 - $275,000
(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 2024 Outlook for Adjusted EBITDA
(In thousands)
Fiscal Year 2024
Ranges
Progressive Leasing
Vive
Other
Consolidated Total
Estimated Net Earnings
$97,500 - $108,000
Income Tax Expense(1)
43,000 - 46,000
Projected Earnings (Loss) Before Income
Tax Expense
$159,000 - $169,000
$1,500 - $3,000
$(20,000) - $(18,000)
140,500 - 154,000
Interest Expense, Net
31,000 - 29,000
—
—
31,000 - 29,000
Depreciation
8,000
500
2,000
10,500
Amortization
17,000
—
1,000
18,000
Projected EBITDA
215,000 - 223,000
2,000 - 3,500
(17,000) - (15,000)
200,000 - 211,500
Stock-Based Compensation
18,000 - 20,000
1,000 - 1,500
3,000 - 4,000
22,000 - 25,500
Restructuring Expense
18,000
—
—
18,000
Projected Adjusted EBITDA
$251,000 - $261,000
$3,000 - $5,000
$(14,000) - $(11,000)
$240,000 - $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, 2024 Outlook for Adjusted EBITDA
(In thousands)
Three Months Ended
September 30, 2024 Outlook
Consolidated Total
Estimated Net Earnings
$27,000 - $30,000
Income Tax Expense(1)
12,000 - 13,000
Projected Earnings Before Income Tax
Expense
39,000 - 43,000
Interest Expense, Net
7,500
Depreciation
2,500
Amortization
4,000
Projected EBITDA
53,000 - 57,000
Stock-Based Compensation
7,000 - 8,000
Projected Adjusted EBITDA
$60,000 - $65,000
(1)
Taxes are calculated on a consolidated
basis and are not identifiable by Company segment.
PROG Holdings, Inc.
Reconciliation of Revised Full
Year 2024 Outlook for Earnings Per Share
Assuming Dilution to Non-GAAP
Earnings Per Share Assuming Dilution
Full Year 2024
Low
High
Projected Earnings Per Share Assuming
Dilution
$
2.52
$
2.68
Add: Projected Intangible Amortization
Expense
0.41
0.41
Add: Projected Interest on FTC Settlement
Uncertain Tax Position
0.07
0.07
Add: Projected Restructuring Expense
0.48
0.48
Subtract: Tax Effect on Non-GAAP
Adjustments(1)
(0.23
)
(0.23
)
Projected Non-GAAP Earnings Per Share
Assuming Dilution(2)
$
3.25
$
3.40
(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 2024 Outlook for Earnings Per Share
Assuming Dilution to Non-GAAP
Earnings Per Share Assuming Dilution
Full Year 2024
Low
High
Projected Earnings Per Share Assuming
Dilution
$
2.18
$
2.43
Add: Projected Intangible Amortization
Expense
0.41
0.41
Add: Projected Interest on FTC Settlement
Uncertain Tax Position
0.07
0.07
Add: Projected Restructuring Expense
0.41
0.41
Subtract: Tax Effect on Non-GAAP
Adjustments(1)
(0.21
)
(0.21
)
Projected Non-GAAP Earnings Per Share
Assuming Dilution(2)
$
2.85
$
3.10
(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, 2024 Outlook for Earnings Per
Share
Assuming Dilution to Non-GAAP
Earnings Per Share Assuming Dilution
Three Months Ended
September 30, 2024
Low
High
Projected Earnings Per Share Assuming
Dilution
$
0.61
$
0.71
Add: Projected Intangible Amortization
Expense
0.09
0.09
Add: Projected Interest on FTC Settlement
Uncertain Tax Position
0.02
0.02
Subtract: Tax Effect on Non-GAAP
Adjustments(1)
(0.02
)
(0.02
)
Projected Non-GAAP Earnings Per Share
Assuming Dilution(2)
$
0.70
$
0.80
(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/20240724341262/en/
Investor Contact John A. Baugh, CFA Vice President,
Investor Relations john.baugh@progleasing.com
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