- Consolidated revenues of $606.1 million; Net earnings of $84.0
million
- Adjusted EBITDA of $63.5 million
- Diluted EPS of $1.94; Non-GAAP Diluted EPS of $0.77
- Progressive Leasing GMV of $456.7 million, 11.6% 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 third quarter ended
September 30, 2024.
"We are pleased to report another strong quarter, highlighted by
11.6% GMV growth and a return to revenue growth in our Progressive
Leasing segment" said PROG Holdings President and CEO Steve
Michaels. This momentum is driven by the effectiveness of our
three-pillared strategy to grow, enhance, and expand, along with
the strong execution by our teams and the benefits from the credit
supply above us tightening. Our focus on enhancing both customer
and retailer experiences has helped deliver top-line momentum and
grow our balance of share with existing retail partners. We have
several initiatives planned for the fourth quarter and beyond,
aimed at driving additional improvements across key performance
metrics such as application volume, customer conversion, active
doors, and productivity per door, positioning us well for success
moving forward. With disciplined spending and portfolio management,
along with progress in our growth initiatives, we remain confident
in our expectation to deliver long-term value for our
shareholders," concluded Michaels.
Consolidated Results
Consolidated revenues for the third quarter of 2024 were $606.1
million, an increase of 4.0% from the same period in 2023.
Consolidated net earnings for the quarter were $84.0 million,
compared with $35.0 million in the prior year period. The increase
in net earnings was primarily driven by recognizing a $53.6 million
non-cash, net tax benefit relating to the reversal of an uncertain
tax position and accrued interest relating to this position.
Adjusted EBITDA for the quarter was $63.5 million, or 10.5% of
revenues, compared with $71.7 million, or 12.3% of revenues for the
same period in 2023. The year-over-year decline in adjusted EBITDA
was driven primarily by a decline in gross margin due to a higher
number of customers choosing to exercise their 90 day purchase
options in Q3 2024.
Diluted earnings per share for the third quarter of 2024 were
$1.94, compared with $0.76 in the year ago period. On a non-GAAP
basis, diluted earnings per share were $0.77 in the third quarter
of 2024, compared with $0.90 for the same period in 2023. The
Company's weighted average shares outstanding assuming dilution in
the third quarter was 6.4% lower year-over-year.
Progressive Leasing Results
Progressive Leasing's third quarter GMV of $456.7 million was up
11.6% 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 third quarter of 2024 with cash of
$221.7 million and gross debt of $600 million. The Company
repurchased $37.0 million of its stock in the quarter at an average
price of $45.69 per share, leaving $401.8 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 fourth 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
$
2,440,000
$
2,460,000
$
2,400,000
$
2,450,000
PROG Holdings - Net Earnings
165,500
170,500
110,500
116,000
PROG Holdings - Adjusted EBITDA
270,000
275,000
265,000
275,000
PROG Holdings - Diluted EPS
3.82
3.92
2.52
2.68
PROG Holdings - Diluted Non-GAAP EPS
3.30
3.40
3.25
3.40
Progressive Leasing - Total Revenues
2,350,000
2,360,000
2,325,000
2,355,000
Progressive Leasing - Earnings Before
Taxes
180,500
181,500
178,000
182,000
Progressive Leasing - Adjusted EBITDA
277,000
280,000
273,500
278,500
Vive - Total Revenues
60,000
65,000
55,000
65,000
Vive - Earnings Before Taxes
(500
)
500
1,500
3,000
Vive - Adjusted EBITDA
1,000
2,000
3,000
5,000
Other - Total Revenues
30,000
35,000
20,000
30,000
Other - Loss Before Taxes
(17,500
)
(16,500
)
(20,000
)
(18,000
)
Other - Adjusted EBITDA
(8,000
)
(7,000
)
(11,500
)
(8,500
)
Three Months Ended
December 31, 2024
(In thousands, except per share
amounts)
Low
High
PROG Holdings - Total Revenues
$
599,824
$
619,824
PROG Holdings - Net Earnings
25,798
30,798
PROG Holdings - Adjusted EBITDA
61,654
66,654
PROG Holdings - Diluted EPS
0.62
0.73
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, October 23, 2024, at 8:30 A.M. ET to discuss its
financial results for the third 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 "planned",
"expectation", "outlook", "continuation", 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) our initiatives to drive
improvements across our key performance metrics; (ii) our ability
to create long-term value for our shareholders; and (iii) our
revised full year 2024 outlook and our fourth 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)
Nine Months Ended
September 30,
September 30,
2024
2023
2024
2023
REVENUES:
Lease Revenues and Fees
$
582,551
$
564,183
$
1,773,617
$
1,776,104
Interest and Fees on Loans Receivable
23,594
18,694
66,559
54,759
606,145
582,877
1,840,176
1,830,863
COSTS AND EXPENSES:
Depreciation of Lease Merchandise
401,070
381,844
1,217,440
1,202,157
Provision for Lease Merchandise
Write-offs
44,736
36,966
131,660
116,295
Operating Expenses
111,108
109,183
346,350
322,152
556,914
527,993
1,695,450
1,640,604
OPERATING PROFIT
49,231
54,884
144,726
190,259
Interest Expense, Net
(7,384
)
(6,775
)
(22,973
)
(22,549
)
EARNINGS BEFORE INCOME TAX (BENEFIT)
EXPENSE
41,847
48,109
121,753
167,710
INCOME TAX (BENEFIT) EXPENSE
(42,115
)
13,097
(17,949
)
47,447
NET EARNINGS
$
83,962
$
35,012
$
139,702
$
120,263
EARNINGS PER SHARE
Basic
$
1.99
$
0.77
$
3.25
$
2.58
Assuming Dilution
$
1.94
$
0.76
$
3.19
$
2.56
CASH DIVIDENDS DECLARED PER
SHARE:
Common Stock
$
0.12
$
—
$
0.36
$
—
WEIGHTED AVERAGE SHARES
OUTSTANDING:
Basic
42,264
45,515
42,969
46,606
Assuming Dilution
43,169
46,133
43,804
47,048
PROG Holdings, Inc.
Consolidated Balance
Sheets
(In thousands, except share
data)
(Unaudited)
September 30,
2024
December 31,
2023
ASSETS:
Cash and Cash Equivalents
$
221,726
$
155,416
Accounts Receivable (net of allowances of
$73,192 in 2024 and $64,180 in 2023)
67,214
67,879
Lease Merchandise (net of accumulated
depreciation and allowances of $455,691 in 2024 and $423,466 in
2023)
554,425
633,427
Loans Receivable (net of allowances and
unamortized fees of $52,155 in 2024 and $50,022 in 2023)
121,568
126,823
Property and Equipment, Net
21,404
24,104
Operating Lease Right-of-Use Assets
3,753
9,271
Goodwill
296,061
296,061
Other Intangibles, Net
77,775
91,664
Income Tax Receivable
10,921
32,918
Deferred Income Tax Assets
2,368
2,981
Prepaid Expenses and Other Assets
69,125
50,711
Total Assets
$
1,446,340
$
1,491,255
LIABILITIES & SHAREHOLDERS’
EQUITY:
Accounts Payable and Accrued Expenses
$
95,138
$
151,259
Deferred Income Tax Liabilities
81,716
104,838
Customer Deposits and Advance Payments
33,200
35,713
Operating Lease Liabilities
12,241
15,849
Debt
593,238
592,265
Total Liabilities
815,533
899,924
SHAREHOLDERS' EQUITY:
Common Stock, Par Value $0.50 Per Share:
Authorized: 225,000,000 Shares at September 30, 2024 and December
31, 2023; Shares Issued: 82,078,654 at September 30, 2024 and
December 31, 2023
41,039
41,039
Additional Paid-in Capital
354,141
352,421
Retained Earnings
1,416,961
1,293,073
1,812,141
1,686,533
Less: Treasury Shares at Cost
Common Stock: 40,535,248 Shares at
September 30, 2024 and 38,404,527 at December 31, 2023
(1,181,334
)
(1,095,202
)
Total Shareholders’ Equity
630,807
591,331
Total Liabilities & Shareholders’
Equity
$
1,446,340
$
1,491,255
PROG Holdings, Inc.
Consolidated Statements of
Cash Flows
(In thousands)
(Unaudited)
Nine Months Ended September
30,
2024
2023
OPERATING ACTIVITIES:
Net Earnings
$
139,702
$
120,263
Adjustments to Reconcile Net Earnings to
Cash Provided by Operating Activities:
Depreciation of Lease Merchandise
1,217,440
1,202,157
Other Depreciation and Amortization
20,780
23,876
Provisions for Accounts Receivable and
Loan Losses
279,291
253,217
Stock-Based Compensation
21,588
19,081
Deferred Income Taxes
(24,530
)
(32,337
)
Impairment of Assets
6,018
—
Income Tax Benefit from Reversal of
Uncertain Tax Position Liabilities
(51,443
)
—
Non-Cash Lease Expense
(2,605
)
(2,065
)
Other Changes, Net
(1,255
)
(4,397
)
Changes in Operating Assets and
Liabilities:
Additions to Lease Merchandise
(1,273,535
)
(1,195,051
)
Book Value of Lease Merchandise Sold or
Disposed
135,096
119,711
Accounts Receivable
(240,409
)
(216,469
)
Prepaid Expenses and Other Assets
(18,865
)
2,304
Income Tax Receivable and Payable
26,251
(21
)
Accounts Payable and Accrued Expenses
(7,998
)
8,735
Customer Deposits and Advance Payments
(2,513
)
(6,463
)
Cash Provided by Operating Activities
223,013
292,541
INVESTING ACTIVITIES:
Investments in Loans Receivable
(282,039
)
(138,922
)
Proceeds from Loans Receivable
252,268
127,079
Outflows on Purchases of Property and
Equipment
(6,037
)
(6,952
)
Proceeds from Property and Equipment
119
30
Other Proceeds
41
—
Cash Used in Investing Activities
(35,648
)
(18,765
)
FINANCING ACTIVITIES:
Dividends Paid
(15,423
)
—
Acquisition of Treasury Stock
(98,187
)
(108,276
)
Issuance of Stock Under Stock Option and
Employee Purchase Plans
855
695
Cash Paid for Shares Withheld for Employee
Taxes
(8,300
)
(3,260
)
Debt Issuance Costs
—
(29
)
Cash Used in Financing Activities
(121,055
)
(110,870
)
Increase in Cash and Cash Equivalents
66,310
162,906
Cash and Cash Equivalents at Beginning of
Period
155,416
131,880
Cash and Cash Equivalents at End of
Period
$
221,726
$
294,786
Net Cash Paid During the Period:
Interest
$
18,695
$
18,768
Income Taxes
$
31,809
$
76,817
PROG Holdings, Inc.
Quarterly Revenues by
Segment
(In thousands)
(Unaudited)
Three Months Ended
September 30, 2024
Progressive Leasing
Vive
Other
Consolidated Total
Lease Revenues and Fees
$
582,551
$
—
$
—
$
582,551
Interest and Fees on Loans Receivable
—
16,000
7,594
23,594
Total Revenues
$
582,551
$
16,000
$
7,594
$
606,145
(Unaudited)
Three Months Ended
September 30, 2023
Progressive Leasing
Vive
Other
Consolidated Total
Lease Revenues and Fees
$
564,183
$
—
$
—
$
564,183
Interest and Fees on Loans Receivable
—
17,547
1,147
18,694
Total Revenues
$
564,183
$
17,547
$
1,147
$
582,877
PROG Holdings, Inc.
Nine Months Revenues by
Segment
(In thousands)
(Unaudited)
Nine Months Ended
September 30, 2024
Progressive Leasing
Vive
Other
Consolidated Total
Lease Revenues and Fees
$
1,773,617
$
—
$
—
$
1,773,617
Interest and Fees on Loans Receivable
—
47,471
19,088
66,559
Total Revenues
$
1,773,617
$
47,471
$
19,088
$
1,840,176
(Unaudited)
Nine Months Ended
September 30, 2023
Progressive Leasing
Vive
Other
Consolidated Total
Lease Revenues and Fees
$
1,776,104
$
—
$
—
$
1,776,104
Interest and Fees on Loans Receivable
—
51,887
2,872
54,759
Total Revenues
$
1,776,104
$
51,887
$
2,872
$
1,830,863
PROG Holdings, Inc.
Gross Merchandise Volume by
Quarter
(In thousands)
(Unaudited)
Three Months Ended September
30,
2024
2023
Progressive Leasing
$
456,651
$
409,169
Vive
38,755
35,243
Other
62,058
19,632
Total GMV
$
557,464
$
464,044
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 net of insurance recoveries, and reversal of
the uncertain tax position related to Progressive Leasing's $175
million settlement with the FTC in 2020. Non-GAAP diluted earnings
per share for the fourth quarter 2024 outlook excludes intangible
amortization expense. Non-GAAP net earnings and non-GAAP diluted
earnings per share for the three and nine months ended September
30, 2024 exclude intangible amortization expense, restructuring
expenses, costs related to the cybersecurity incident, and reversal
of the 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 nine months
ended September 30, 2023 exclude intangible amortization expense,
restructuring expenses, costs related to the cybersecurity
incident, 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 nine
months ended September 30, 2024 and full year 2024 outlook excludes
stock-based compensation expense, restructuring expenses, and costs
related to the cybersecurity incident, net of insurance recoveries.
Adjusted EBITDA for the three and nine months ended September 30,
2023 excludes stock-based compensation expense, restructuring
expenses, costs related to the cybersecurity incident and
regulatory insurance recoveries. Adjusted EBITDA for the fourth
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
Nine Months Ended
September 30,
September 30,
2024
2023
2024
2023
Net Earnings
$
83,962
$
35,012
$
139,702
$
120,263
Add: Intangible Amortization Expense
4,000
5,650
13,889
17,097
Add: Restructuring Expense
6
238
20,906
1,958
Add: Costs Related to the Cybersecurity
Incident, Net of Insurance Recoveries
114
1,805
346
1,805
Less: Regulatory Insurance Recoveries
—
—
—
(525
)
Less: Tax Impact of Adjustments(1)
(1,071
)
(2,000
)
(9,138
)
(5,287
)
Less: Reversal of Uncertain Tax
Position
(53,599
)
—
(53,599
)
—
Add: Accrued Interest on Uncertain Tax
Position
—
971
2,156
2,911
Non-GAAP Net Earnings
$
33,412
$
41,676
$
114,262
$
138,222
Earnings Per Share Assuming Dilution
$
1.94
$
0.76
$
3.19
$
2.56
Add: Intangible Amortization Expense
0.09
0.12
0.32
0.36
Add: Restructuring Expense
—
0.01
0.48
0.04
Add: Costs Related to the Cybersecurity
Incident, Net of Insurance Recoveries
—
0.04
0.01
0.04
Less: Regulatory Insurance Recoveries
—
—
—
(0.01
)
Less: Tax Impact of Adjustments(1)
(0.02
)
(0.04
)
(0.21
)
(0.11
)
Less: Reversal of Uncertain Tax
Position
(1.24
)
—
(1.22
)
—
Add: Accrued Interest on Uncertain Tax
Position
—
0.02
0.05
0.06
Non-GAAP Earnings Per Share Assuming
Dilution(2)
$
0.77
$
0.90
$
2.61
$
2.94
Weighted Average Shares Outstanding
Assuming Dilution
43,169
46,133
43,804
47,048
(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
September 30, 2024
Progressive Leasing
Vive
Other
Consolidated Total
Net Earnings
$
83,962
Income Tax (Benefit) Expense(1)
(42,115
)
Earnings (Loss) Before Income Tax
(Benefit) Expense
$
47,177
$
(1,441
)
$
(3,889
)
41,847
Interest Expense, Net
7,700
—
(316
)
7,384
Depreciation
1,619
155
491
2,265
Amortization
3,771
—
229
4,000
EBITDA
60,267
(1,286
)
(3,485
)
55,496
Stock-Based Compensation
6,059
354
1,438
7,851
Restructuring Expense
6
—
—
6
Costs Related to the Cybersecurity
Incident, Net of Insurance Recoveries
114
—
—
114
Adjusted EBITDA
$
66,446
$
(932
)
$
(2,047
)
$
63,467
(1)
Taxes are calculated on a consolidated
basis and are not identifiable by Company segment.
(Unaudited)
Three Months Ended
September 30, 2023
Progressive Leasing
Vive
Other
Consolidated Total
Net Earnings
$
35,012
Income Tax Expense(1)
13,097
Earnings (Loss) Before Income Tax
Expense
$
53,941
$
565
$
(6,397
)
48,109
Interest Expense, Net
6,746
112
(83
)
6,775
Depreciation
1,841
184
307
2,332
Amortization
5,420
—
230
5,650
EBITDA
67,948
861
(5,943
)
62,866
Stock-Based Compensation
4,851
302
1,668
6,821
Restructuring Expense
238
—
—
238
Costs Related to the Cybersecurity
Incident
1,805
—
—
1,805
Adjusted EBITDA
$
74,842
$
1,163
$
(4,275
)
$
71,730
(1)
Taxes are calculated on a consolidated
basis and are not identifiable by Company segment.
PROG Holdings, Inc.
Non-GAAP Financial
Information
Nine Month Segment
EBITDA
(In thousands)
(Unaudited)
Nine Months Ended
September 30, 2024
Progressive Leasing
Vive
Other
Consolidated Total
Net Earnings
$
139,702
Income Tax (Benefit) Expense(1)
(17,949
)
Earnings (Loss) Before Income Tax
(Benefit) Expense
$
136,596
$
108
$
(14,951
)
121,753
Interest Expense, Net
23,922
—
(949
)
22,973
Depreciation
5,080
487
1,324
6,891
Amortization
13,201
—
688
13,889
EBITDA
178,799
595
(13,888
)
165,506
Stock-Based Compensation
16,905
1,052
3,631
21,588
Restructuring Expense
18,278
—
2,628
20,906
Costs Related to the Cybersecurity
Incident, Net of Insurance Recoveries
346
—
—
346
Adjusted EBITDA
$
214,328
$
1,647
$
(7,629
)
$
208,346
(1)
Taxes are calculated on a consolidated
basis and are not identifiable by Company segment.
(Unaudited)
Nine Months Ended
September 30, 2023
Progressive Leasing
Vive
Other
Consolidated Total
Net Earnings
$
120,263
Income Tax Expense(1)
47,447
Earnings (Loss) Before Income Tax
Expense
$
180,414
$
4,486
$
(17,190
)
167,710
Interest Expense, Net
22,063
569
(83
)
22,549
Depreciation
5,541
534
705
6,780
Amortization
16,262
—
835
17,097
EBITDA
224,280
5,589
(15,733
)
214,136
Stock-Based Compensation
13,303
884
4,894
19,081
Restructuring Expense
1,958
—
—
1,958
Regulatory Insurance Recoveries
(525
)
—
—
(525
)
Costs Related to the Cybersecurity
Incident
1,805
—
—
1,805
Adjusted EBITDA
$
240,821
$
6,473
$
(10,839
)
$
236,455
(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
$165,500 - $170,500
Income Tax (Benefit) Expense(1)
(3,000) - (5,000)
Projected Earnings (Loss) Before Income
Tax (Benefit) Expense
$180,500 - $181,500
$(500) - $500
$(17,500) - $(16,500)
162,500 - 165,500
Interest Expense, Net
32,000 - 33,000
—
(1,000
)
31,000 - 32,000
Depreciation
7,000
500
2,000
9,500
Amortization
17,000
—
1,000
18,000
Projected EBITDA
236,500 - 238,500
0 - 1,000
(15,500) - (14,500)
221,000 - 225,000
Stock-Based Compensation
22,000 - 23,000
1,000
5,000
28,000 - 29,000
Restructuring Expense & Cyber Incident
Costs, Net of Insurance Recoveries
18,500
—
2,500
21,000
Projected Adjusted EBITDA
$277,000 - $280,000
$1,000 - $2,000
$(8,000) - $(7,000)
$270,000 - $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
$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 & Cyber Incident
Costs, Net of Insurance Recoveries
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 the Three
Months Ended December 31, 2024 Outlook for Adjusted EBITDA
(In thousands)
Three Months Ended
December 31, 2024
Consolidated Total
Estimated Net Earnings
$25,798 - $30,798
Income Tax Expense(1)
14,949 - 12,949
Projected Earnings Before Income Tax
Expense
40,747 - 43,747
Interest Expense, Net
8,027 - 9,027
Depreciation
2,609
Amortization
4,111
Projected EBITDA
55,494 - 59,494
Stock-Based Compensation
6,160 - 7,160
Projected Adjusted EBITDA
$61,654 - $66,654
(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
$
3.82
$
3.92
Add: Projected Intangible Amortization
Expense
0.41
0.41
Add: Projected Restructuring Expense &
Cyber Incident Costs, Net of Insurance Recoveries
0.48
0.48
Subtract: Tax Effect on Non-GAAP
Adjustments(1)
(0.23
)
(0.23
)
Subtract: Reversal of Uncertain Tax
Position
(1.18
)
(1.18
)
Projected Non-GAAP Earnings Per Share
Assuming Dilution(2)
$
3.30
$
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
$
2.52
$
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 &
Cyber Incident Costs, Net of Insurance Recoveries
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 the Three
Months Ended December 31, 2024 Outlook for Earnings Per
Share
Assuming Dilution to Non-GAAP
Earnings Per Share Assuming Dilution
Three Months Ended
December 31, 2024
Low
High
Projected Earnings Per Share Assuming
Dilution
$
0.62
$
0.73
Add: Projected Intangible Amortization
Expense
0.09
0.09
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/20241023706250/en/
Investor Contact John A. Baugh, CFA Vice President,
Investor Relations john.baugh@progleasing.com
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