Upbound Group, Inc. Reports Second Quarter 2024 Results
Upbound Group, Inc. (NASDAQ: UPBD) reported its second quarter 2024 results, with total revenue reaching $1,077 million. The company's GAAP Diluted EPS was $0.61, while Non-GAAP Diluted EPS stood at $1.04. Upbound Group operates through brands like Rent-A-Center® and Acima®, facilitating consumer transactions across over 2,300 company-branded retail units in the United States, Mexico, and Puerto Rico. The company's focus is on providing innovative financial solutions through its omni-channel platform. The earnings report includes non-GAAP financial measures to assist management in evaluating performance and liquidity across periods.
Upbound Group, Inc. (NASDAQ: UPBD) ha riportato i suoi risultati del secondo trimestre 2024, con ricavi totali che hanno raggiunto 1.077 milioni di dollari. L'EPS diluito GAAP dell'azienda è stato di 0,61 dollari, mentre l'EPS diluito Non-GAAP si è attestato a 1,04 dollari. Upbound Group opera attraverso marchi come Rent-A-Center® e Acima®, facilitando le transazioni dei consumatori in oltre 2.300 punti vendita a marchio aziendale negli Stati Uniti, in Messico e a Porto Rico. L'azienda si concentra sull'offerta di soluzioni finanziarie innovative attraverso la sua piattaforma omnicanale. Il rapporto sugli utili include misure finanziarie non-GAAP per assistere la direzione nella valutazione delle prestazioni e della liquidità nel tempo.
Upbound Group, Inc. (NASDAQ: UPBD) reportó sus resultados del segundo trimestre de 2024, con ingresos totales que alcanzaron 1,077 millones de dólares. El EPS diluido GAAP de la compañía fue de 0.61 dólares, mientras que el EPS diluido no-GAAP se situó en 1.04 dólares. Upbound Group opera a través de marcas como Rent-A-Center® y Acima®, facilitando transacciones de consumidores a través de más de 2,300 unidades de venta al por menor de marca propia en Estados Unidos, México y Puerto Rico. La compañía se enfoca en proporcionar soluciones financieras innovadoras a través de su plataforma omnicanal. El informe de ganancias incluye medidas financieras no-GAAP para ayudar a la gerencia a evaluar el rendimiento y la liquidez a lo largo del tiempo.
Upbound Group, Inc. (NASDAQ: UPBD)는 2024년 2분기 실적을 발표하며 총 매출이 10억 7,700만 달러에 달했다고 전했다. 회사의 GAAP 기준 희석 주당순이익(EPS)은 0.61달러, 비 GAAP 기준 희석 EPS는 1.04달러로 집계되었다. Upbound Group은 Rent-A-Center® 및 Acima®와 같은 브랜드를 통해 운영되며, 미국, 멕시코 및 푸에르토리코에서 2,300개 이상의 브랜드 매장을 통해 소비자 거래를 지원하고 있다. 회사는 혁신적인 금융 솔루션을 제공하는데 중점을 두고 있으며, 이를 위해 옴니채널 플랫폼을 운영한다. 이익 보고서에는 경영진이 성과와 유동성을 평가하는 데 도움이 되는 비 GAAP 재무 지표가 포함되어 있다.
Upbound Group, Inc. (NASDAQ: UPBD) a annoncé ses résultats du deuxième trimestre 2024, avec des revenus totaux atteignant 1 077 millions de dollars. Le bénéfice par action (EPS) dilué selon les normes GAAP de l'entreprise était de 0,61 dollar, tandis que l'EPS dilué non-GAAP s'élevait à 1,04 dollar. Upbound Group opère à travers des marques telles que Rent-A-Center® et Acima®, facilitant les transactions des consommateurs à travers plus de 2 300 unités de vente au détail de marque aux États-Unis, au Mexique et à Porto Rico. L'entreprise se concentre sur la fourniture de solutions financières innovantes via sa plateforme omnicanale. Le rapport sur les bénéfices comprend des mesures financières non-GAAP pour aider la direction à évaluer la performance et la liquidité sur différentes périodes.
Upbound Group, Inc. (NASDAQ: UPBD) hat seine Ergebnisse für das zweite Quartal 2024 veröffentlicht, wobei die Gesamteinnahmen 1.077 Millionen US-Dollar erreichten. Das GAAP verwässerte EPS des Unternehmens betrug 0,61 US-Dollar, während das Non-GAAP verwässerte EPS bei 1,04 US-Dollar lag. Upbound Group operiert unter Marken wie Rent-A-Center® und Acima® und erleichtert Verbrauchertransaktionen in über 2.300 unternehmenseigenen Einzelhandelsstandorten in den Vereinigten Staaten, Mexiko und Puerto Rico. Das Unternehmen konzentriert sich auf die Bereitstellung von innovativen Finanzlösungen über seine Omnichannel-Plattform. Der Gewinnbericht beinhaltet nicht-GAAP finanzielle Kennzahlen, um dem Management bei der Bewertung der Leistung und Liquidität über Zeiträume hinweg zu helfen.
- Total revenue of $1,077 million for Q2 2024
- Non-GAAP Diluted EPS of $1.04, higher than GAAP Diluted EPS of $0.61
- Presence in over 2,300 company-branded retail units across three countries
- Incurred debt refinancing fees of $0.08 per share
- Reported asset impairments of $0.07 per share
- Accelerated software depreciation of $0.03 per share
Upbound Group's Q2 2024 results present a mixed picture. The company reported
Key points to consider:
- The
$0.43 difference between GAAP and non-GAAP EPS is primarily due to debt refinancing fees ($0.08 ) and special items ($0.35 ). - Special items include Acima acquired assets depreciation and amortization (
$0.21 ), asset impairments ($0.07 ) and accelerated software depreciation ($0.03 ). - The company's use of non-GAAP measures aims to provide a clearer picture of core operations, but investors should be cautious about relying solely on these adjusted figures.
While the non-GAAP EPS appears strong, the underlying GAAP performance and the nature of the adjustments warrant closer scrutiny. The substantial impact of Acima-related depreciation and amortization suggests ongoing integration challenges or potential overvaluation of these acquired assets. Asset impairments could indicate some operational or market-related difficulties.
Investors should closely monitor Upbound's ability to generate sustainable earnings without relying heavily on non-GAAP adjustments in future quarters. The company's omni-channel strategy and focus on financial solutions for underserved consumers could provide growth opportunities, but execution risks remain.
Upbound Group's Q2 2024 results offer insights into the evolving landscape of consumer financial services. As an omni-channel platform company, Upbound is positioning itself at the intersection of traditional retail and fintech, which presents both opportunities and challenges:
- The company's focus on "elevating financial opportunity for all" aligns with growing market trends towards financial inclusion and alternative credit models.
- The presence of over 2,300 company-branded retail units across the US, Mexico and Puerto Rico indicates a significant physical footprint, which can be both an asset and a potential liability in an increasingly digital world.
- The Rent-A-Center and Acima brands suggest a diverse product offering, potentially providing resilience against sector-specific downturns.
However, the financial results raise some concerns:
- The need for substantial non-GAAP adjustments may indicate underlying operational complexities or integration challenges, particularly with the Acima acquisition.
- Asset impairments of
$0.07 per share suggest potential overvaluation of certain assets or changing market conditions affecting their value. - The accelerated software depreciation (
$0.03 per share) could indicate rapid technological changes or strategic shifts in the company's digital infrastructure.
Investors should watch for Upbound's ability to leverage its omni-channel approach effectively, balancing the costs of maintaining a physical presence with the opportunities in digital financial services. The company's performance in the coming quarters will be important in determining whether it can successfully navigate the evolving financial services landscape and deliver sustainable growth.
Total Revenue of
GAAP Diluted EPS
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 second 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 2,300 company branded retail units across
__________________ 1 Non-GAAP financial measure. Refer to definitions and reconciliations included 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
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 June 30, 2024 |
Diluted Earnings Per Share |
||
GAAP Results |
$ |
0.61 |
|
Plus: Debt refinancing fees |
|
0.08 |
|
Plus: Special Items(1) |
|
||
Acima acquired assets depreciation and amortization |
|
0.21 |
|
Asset Impairments |
|
0.07 |
|
Accelerated software depreciation |
|
0.03 |
|
Accelerated stock compensation |
|
0.02 |
|
Legal settlement reserve |
|
0.01 |
|
Other |
|
0.01 |
|
Non-GAAP Adjusted Results |
$ |
1.04 |
|
(1) Additional details of Special items are included in Table 5 (Reconciliation of Net Earnings (Loss) to Net Earnings Excluding Special Items and Non-GAAP Diluted Earnings Per Share) of the second quarter 2024 earnings release dated August 1, 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/20240801789426/en/
Investor Contact:
Jeff Chesnut
SVP Strategy & Corporate Development
972-801-1108
jeff.chesnut@upbound.com
Source: Upbound Group, Inc.
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