PROG Holdings Reports Third Quarter 2024 Results
PROG Holdings reported strong Q3 2024 results with consolidated revenues of $606.1 million, up 4.0% year-over-year. Net earnings reached $84.0 million, significantly higher than $35.0 million in 2023, primarily due to a $53.6 million non-cash tax benefit. Progressive Leasing achieved 11.6% GMV growth to $456.7 million. Adjusted EBITDA was $63.5 million (10.5% of revenues), compared to $71.7 million (12.3%) in 2023. The company raised its full-year outlook, projecting total revenues between $2.44-2.46 billion and net earnings of $165.5-170.5 million.
PROG Holdings ha riportato risultati solidi per il terzo trimestre del 2024, con ricavi consolidati di 606,1 milioni di dollari, in aumento del 4,0% rispetto all'anno precedente. Gli utili netti hanno raggiunto 84,0 milioni di dollari, significativamente superiori ai 35,0 milioni di dollari nel 2023, principalmente a causa di un beneficio fiscale non liquido di 53,6 milioni di dollari. Progressive Leasing ha registrato una crescita del GMV dell'11,6%, arrivando a 456,7 milioni di dollari. L'EBITDA rettificato è stato di 63,5 milioni di dollari (10,5% dei ricavi), rispetto ai 71,7 milioni di dollari (12,3%) del 2023. L'azienda ha alzato le previsioni per l'intero anno, prevedendo ricavi totali tra 2,44 e 2,46 miliardi di dollari e utili netti tra 165,5 e 170,5 milioni di dollari.
PROG Holdings informó resultados sólidos para el tercer trimestre de 2024, con ingresos consolidados de 606,1 millones de dólares, un aumento del 4,0% en comparación con el año anterior. Las ganancias netas alcanzaron 84,0 millones de dólares, significativamente superiores a los 35,0 millones de dólares en 2023, principalmente debido a un beneficio fiscal no monetario de 53,6 millones de dólares. Progressive Leasing logró un crecimiento del GMV del 11,6%, alcanzando 456,7 millones de dólares. El EBITDA ajustado fue de 63,5 millones de dólares (10,5% de los ingresos), en comparación con 71,7 millones de dólares (12,3%) en 2023. La empresa elevó su pronóstico para todo el año, proyectando ingresos totales entre 2,44 y 2,46 mil millones de dólares y ganancias netas de 165,5 a 170,5 millones de dólares.
PROG Holdings는 2024년 3분기 강력한 실적을 보고하며, 통합 수익이 6억 6061만 달러로 전년 대비 4.0% 증가했다고 발표했습니다. 순이익은 8400만 달러에 도달했으며, 이는 2023년 3500만 달러에 비해 상당히 증가한 수치로, 주로 5360만 달러의 비현금 세금 혜택 때문입니다. Progressive Leasing은 11.6%의 GMV 성장을 기록하여 4억 5670만 달러에 도달했습니다. 조정 EBITDA는 6350만 달러(수익의 10.5%)로, 2023년의 7170만 달러(12.3%)에 비해 감소했습니다. 회사는 연간 전망을 상향 조정하여 총 수익을 24억 4400만 달러에서 24억 6000만 달러 사이로 예측하고, 순이익을 1억 6550만 달러에서 1억 7050만 달러로 예상하고 있습니다.
PROG Holdings a annoncé de solides résultats pour le troisième trimestre 2024, avec des revenus consolidés de 606,1 millions de dollars, en hausse de 4,0 % par rapport à l'année précédente. Les bénéfices nets ont atteint 84,0 millions de dollars, nettement supérieurs aux 35,0 millions de dollars de 2023, principalement en raison d'un avantage fiscal non monétaire de 53,6 millions de dollars. Progressive Leasing a enregistré une croissance du GMV de 11,6 %, atteignant 456,7 millions de dollars. L'EBITDA ajusté s'élevait à 63,5 millions de dollars (10,5 % des revenus), contre 71,7 millions de dollars (12,3 %) en 2023. L'entreprise a relevé ses prévisions pour l'année entière, projetant des revenus totaux entre 2,44 et 2,46 milliards de dollars et des bénéfices nets de 165,5 à 170,5 millions de dollars.
PROG Holdings berichtete über starke Ergebnisse im dritten Quartal 2024 mit konsolidierten Einnahmen von 606,1 Millionen Dollar, was einem Anstieg von 4,0 % im Vergleich zum Vorjahr entspricht. Der Nettogewinn erreichte 84,0 Millionen Dollar, signifikant höher als die 35,0 Millionen Dollar im Jahr 2023, hauptsächlich aufgrund eines nicht liquiden Steuervorteils in Höhe von 53,6 Millionen Dollar. Progressive Leasing erzielte ein GMV-Wachstum von 11,6 % und erreichte 456,7 Millionen Dollar. Das angepasste EBITDA betrug 63,5 Millionen Dollar (10,5 % der Einnahmen), im Vergleich zu 71,7 Millionen Dollar (12,3 %) im Jahr 2023. Das Unternehmen hob seine Jahresprognose an und erwartet Gesamteinnahmen zwischen 2,44 und 2,46 Milliarden Dollar sowie einen Nettogewinn von 165,5 bis 170,5 Millionen Dollar.
- Revenue increased 4.0% year-over-year to $606.1 million
- Net earnings jumped to $84.0 million from $35.0 million YoY
- Progressive Leasing GMV grew 11.6% to $456.7 million
- Raised full-year revenue and earnings guidance
- Strong cash position of $221.7 million
- Adjusted EBITDA declined to $63.5 million from $71.7 million YoY
- EBITDA margin decreased to 10.5% from 12.3% YoY
- Non-GAAP diluted EPS decreased to $0.77 from $0.90 YoY
- Gross margin declined due to increased 90-day purchase options
Insights
A solid quarter with mixed signals. Revenue growth of
The raised full-year guidance and strong cash position (
The company's strategic focus on growth amid tightening credit conditions positions it well, though soft consumer demand remains a headwind.
The lease-to-own market dynamics are shifting favorably for PROG Holdings. Tightening credit conditions in traditional lending channels are driving more customers to alternative financing options. The
However, the increased rate of 90-day purchase options indicates customers may be using the service more as a short-term financing solution than traditional leasing. This behavioral shift, while impacting margins, could represent a sustainable competitive advantage in the current economic environment. The company's enhanced focus on customer experience and retailer relationships appears to be yielding results in door growth and productivity metrics.
-
Consolidated revenues of
$606.1 million $84.0 million -
Adjusted EBITDA of
$63.5 million -
Diluted EPS of
$1.94 $0.77 -
Progressive Leasing GMV of
$456.7 million 11.6% growth year-over-year - Raises full year consolidated revenue and earnings outlook
"We are pleased to report another strong quarter, highlighted by
Consolidated Results
Consolidated revenues for the third quarter of 2024 were
Consolidated net earnings for the quarter were
Diluted earnings per share for the third quarter of 2024 were
Progressive Leasing Results
Progressive Leasing's third quarter GMV of
Liquidity and Capital Allocation
PROG Holdings ended the third quarter of 2024 with cash of
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
|
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
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,
|
December 31,
|
||||||
ASSETS: |
|
|
||||||
Cash and Cash Equivalents |
$ |
221,726 |
|
$ |
155,416 |
|
||
Accounts Receivable (net of allowances of |
|
67,214 |
|
|
67,879 |
|
||
Lease Merchandise (net of accumulated depreciation and allowances of |
|
554,425 |
|
|
633,427 |
|
||
Loans Receivable (net of allowances and unamortized fees of |
|
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 |
|
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
|
|||||||
|
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
|
|||||
|
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 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 |
|
(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 |
|
|
|
|
|||||
Income Tax (Benefit) Expense(1) |
|
|
|
(3,000) - (5,000) |
|||||
Projected Earnings (Loss) Before Income Tax (Benefit) Expense |
|
|
|
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 |
|
|
|
|
|||||
(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 |
|
|
|
|
|||||
Income Tax Expense(1) |
|
|
|
49,000 - 51,000 |
|||||
Projected Earnings (Loss) Before Income Tax Expense |
|
|
|
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 |
|
|
|
|
|||||
(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 |
|
|
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 |
|
|
(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 |
|
(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 |
|
(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 |
|
(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
Source: PROG Holdings, Inc.
FAQ
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