Upbound Group, Inc. Reports First Quarter 2024 Results

Rhea-AI Summary

Upbound Group, Inc. reported its first-quarter 2024 results, showcasing a total revenue of $1,096 million. The company disclosed a GAAP Diluted EPS of $0.50 and a Non-GAAP Diluted EPS of $0.79. Upbound Group, Inc. is a platform company focused on innovative financial solutions through industry-leading brands like Rent-A-Center® and Acima®.

Positive

• Upbound Group, Inc. achieved a substantial total revenue of $1,096 million in the first quarter of 2024, demonstrating strong financial performance.

Negative

• The Company reported a GAAP Diluted EPS of $0.50, which might indicate a potential decrease in earnings compared to previous periods, possibly impacting investor sentiment.

Insights

Financial Analyst

Upbound Group's first quarter results indicate a significant disparity between GAAP and Non-GAAP EPS, with the latter being much higher due to adjustments for special items. A deep dive into these adjustments reveals items such as depreciation and amortization of acquired assets, equity consideration vesting and software depreciation, which could hint at recent acquisitions or investments in technology that have yet to provide returns. The difference between the GAAP and Non-GAAP figures could also suggest a future earnings potential if these investments pay off. However, the reliance on Non-GAAP measures to present a more favorable earnings picture may raise questions about the underlying profitability of the company. It's essential for investors to scrutinize these adjustments to get a true sense of the company's operating performance.

Market Research Analyst

The reported increase in revenue along with the strategic investments in technology and acquisitions, as indicated by the non-GAAP adjustments, position Upbound Group in a favorable spot within the omni-channel platform industry. These investments likely aim to enhance their customer-facing units and expand their digital and store-based retail operations. Possible long-term advantages include capturing a larger market share and improving customer retention through innovative financial solutions. Market trends show that technology-driven financial platforms are gaining traction and Upbound's strategy seems to align with this growth. Investors should monitor Upbound's ability to leverage these investments to generate sustainable growth and how effectively they can manage the associated costs in the long term.

Tech Industry Analyst

The mention of accelerated software depreciation signals ongoing technological upgrades which might signify a shift in Upbound's strategic approach to more digitally-oriented solutions. Given the nature of the omni-channel platform industry, where technological edge is a key competitive advantage, the company's ability to innovate and integrate these solutions across their brands could be a critical factor for future growth. Investors should consider the potential benefits of these technology investments and their impact on the company's operational efficiency. However, it is also important to watch for the scalability of these solutions and whether they will lead to an improved bottom line in the competitive landscape of tech-driven financial solutions.

Total Revenue of $1,096 million

GAAP Diluted EPS $0.50, Non-GAAP Diluted EPS¹ $0.79

PLANO, Texas--(BUSINESS WIRE)-- Upbound Group, Inc. (the "Company" or "Upbound") (NASDAQ:UPBD) today announced results for the quarter ended March 31, 2024. The earnings release, financial tables and related materials can be found on the Company's investor relations website at https://investor.upbound.com.

Today at 9 a.m. ET, Mitch Fadel, Chief Executive Officer, and Fahmi Karam, Chief Financial Officer, will host a conference call to review the financial results of the first quarter. Interested parties can access a live webcast of the conference call via this link (webcast link) or through the Company's investor relations website.

About Upbound Group, Inc.

Upbound Group, Inc. (NASDAQ: UPBD) is an omni-channel platform company committed to elevating financial opportunity for all through innovative, inclusive, and technology-driven financial solutions that address the evolving needs and aspirations of consumers. The Company’s customer-facing operating units include industry-leading brands such as Rent-A-Center® and Acima® that facilitate consumer transactions across a wide range of store-based and digital retail channels, including over 2,400 company branded retail units across the United States, Mexico and Puerto Rico. Upbound Group, Inc. is headquartered in Plano, Texas. For additional information about the Company, please visit our website Upbound.com.

1 Non-GAAP financial measure. Refer to the explanations and reconciliations elsewhere in this release.

Non-GAAP Financial Measures

This release and the Company's related conference call contain certain financial information determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles (GAAP), including (1) Non-GAAP diluted earnings per share (net earnings or loss, as adjusted for special items (as defined below), net of taxes, divided by the number of shares of our common stock on a fully diluted basis) and (2) other non-GAAP financial measures explained in the Company’s other quarterly earnings disclosures. “Special items” refers to certain gains and charges we view as extraordinary, unusual or non-recurring in nature or which we believe do not reflect our core business activities, and are reported as Other Gains and Charges in our Consolidated Statements of Operations.

For the periods presented herein, these special items are described in the quantitative reconciliation table included below in this release. Because of the inherent uncertainty related to these special items, management does not believe it is able to provide a meaningful forecast of the comparable GAAP measures or reconciliation to any forecasted GAAP measure without unreasonable effort. These non-GAAP measures are additional tools intended to assist our management in comparing our performance on a more consistent basis for purposes of business decision-making by removing the impact of certain items management believes do not directly reflect our core operations. These measures are intended to assist management in evaluating operating performance and liquidity, comparing performance and liquidity across periods, planning and forecasting future business operations, helping determine levels of operating and capital investments and identifying and assessing additional trends potentially impacting our Company that may not be shown solely by comparisons of GAAP measures. Consolidated Adjusted EBITDA is also used as part of our incentive compensation program for our executive officers and others. We believe these non-GAAP financial measures also provide supplemental information that is useful to investors, analysts and other external users of our consolidated financial statements in understanding our financial results and evaluating our performance and liquidity from period to period. However, non-GAAP financial measures have inherent limitations and are not substitutes for, or superior to, GAAP financial measures, and they should be read together with, our consolidated financial statements prepared in accordance with GAAP. Further, because non-GAAP financial measures are not standardized, it may not be possible to compare such measures to the non-GAAP financial measures presented by other companies, even if they have the same or similar names.

Exhibit 1 - Reconciliation of diluted earnings per share to Non-GAAP diluted earnings per share
Three Months Ended March 31, 2024	Diluted Earnings Per Share
GAAP Results	$	0.50
Plus: Special Items(1)
Acima acquired assets depreciation and amortization		0.19
Acima equity consideration vesting		0.11
Accelerated software depreciation		0.05
Asset impairments		0.01
Discrete income tax items		(0.07	)
Non-GAAP Adjusted Results	$	0.79
(1) Additional details of Special items are included in Table 5 (Reconciliation of Net Earnings to Net Earnings Excluding Special Items and Non-GAAP Diluted Earnings Per Share) of the first quarter 2024 earnings release dated May 2, 2024, which can be found on the Company's investor relations website as noted above.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240502299160/en/

Investor Contact:

Jeff Chesnut

SVP Strategy & Corporate Development

972-801-1108

jeff.chesnut@upbound.com

Source: Upbound Group, Inc.

FAQ

What was Upbound Group, Inc.'s total revenue for the first quarter of 2024?

Upbound Group, Inc. reported a total revenue of $1,096 million for the first quarter of 2024.

What are the brands under Upbound Group, Inc.?

Upbound Group, Inc. encompasses industry-leading brands like Rent-A-Center® and Acima®.

Where can the financial tables and materials related to Upbound Group, Inc.'s first-quarter results be found?

The earnings release, financial tables, and related materials can be accessed on the Company's investor relations website at https://investor.upbound.com.

Who will host the conference call to review Upbound Group, Inc.'s financial results for the first quarter of 2024?

Mitch Fadel, Chief Executive Officer, and Fahmi Karam, Chief Financial Officer, will host the conference call to review the financial results of the first quarter.