Upbound Group, Inc. Reports Third Quarter 2024 Results

Rhea-AI Summary

Upbound Group (NASDAQ:UPBD) has released its third quarter 2024 financial results, reporting total revenue of $1,069 million. The company achieved GAAP diluted earnings per share of $0.55 and Non-GAAP diluted EPS of $0.95. Upbound operates through brands like Rent-A-Center® and Acima®, managing over 2,300 retail units across the United States, Mexico, and Puerto Rico. The Non-GAAP EPS includes adjustments for special items such as Acima acquired assets depreciation, legal matters, and accelerated stock compensation.

Positive

• Revenue reached $1,069 million in Q3 2024
• Non-GAAP diluted EPS of $0.95
• GAAP diluted EPS of $0.55
• Extensive retail presence with over 2,300 company-branded units

Negative

• Legal matters requiring $0.15 per share adjustment
• Ongoing depreciation and amortization costs from Acima acquisition ($0.21 per share)

Insights

Financial Analyst

Upbound Group delivered solid Q3 results with $1.069 billion in revenue and non-GAAP EPS of $0.95, significantly higher than GAAP EPS of $0.55. The difference is largely attributed to special items including Acima asset depreciation ($0.21) and legal matters ($0.15).

The company's omni-channel platform strategy, operating through Rent-A-Center and Acima brands across 2,300+ retail units, demonstrates strong market presence. The significant gap between GAAP and non-GAAP earnings suggests substantial one-time costs that may not impact future performance, though legal matters warrant monitoring. The steady performance indicates resilience in their rent-to-own business model despite broader economic pressures.

Total Revenue of $1,069 million

GAAP Diluted EPS $0.55, Non-GAAP Diluted EPS¹ $0.95

PLANO, Texas--(BUSINESS WIRE)-- Upbound Group, Inc. (the "Company" or "Upbound") (NASDAQ:UPBD) today announced results for the quarter ended September 30, 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 third 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 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 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 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 September 30, 2024	Diluted Earnings Per Share
GAAP Results	$	0.55
Plus: Special Items(1)
Acima acquired assets depreciation and amortization		0.21
Legal matters		0.15
Accelerated stock compensation		0.02
Other		0.01
Discrete income tax items		0.01
Non-GAAP Adjusted Results	$	0.95
(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 third quarter 2024 earnings release dated October 31, 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/20241031963323/en/

Jeff Chesnut

SVP Strategy & Corporate Development

972-801-1108

jeff.chesnut@upbound.com

Source: Upbound Group, Inc.

FAQ

What was Upbound Group's (UPBD) revenue in Q3 2024?

Upbound Group reported total revenue of $1,069 million in the third quarter of 2024.

What was Upbound Group's (UPBD) earnings per share in Q3 2024?

Upbound Group reported GAAP diluted EPS of $0.55 and Non-GAAP diluted EPS of $0.95 in Q3 2024.

How many retail units does Upbound Group (UPBD) operate in 2024?

Upbound Group operates over 2,300 company-branded retail units across the United States, Mexico, and Puerto Rico.

What special items affected Upbound Group's (UPBD) Q3 2024 earnings?

Special items included Acima acquired assets depreciation ($0.21 per share), legal matters ($0.15 per share), accelerated stock compensation ($0.02 per share), and other items ($0.02 per share).