Business
Upbound Group, Inc. Reports First Quarter 2023 Results
Total Revenue of $1.016 Billion GAAP Diluted EPS of $0.84; Non-GAAP Diluted EPS $0.83 $105.4 Million of Cash From Operations; $95.9 Million of Free Cash Flow
About this update from Upbound Group, Inc.
[{"type":"text","content":"\nTotal Revenue of $1.016 Billion\n\n\nGAAP Diluted EPS of $0.84; Non-GAAP Diluted EPS $0.83\n\n\n$105.4 Million of Cash From Operations; $95.9 Million of Free Cash Flow\n\n\nConsolidated Skip-Stolen Loss Rate Improved 150 bps Year-Over-Year\n\n\nRaises Full Year 2023 Targets for Adjusted EBITDA and Non-GAAP EPS\n\n\n PLANO, Texas--(BUSINESS WIRE)--\nUpbound Group, Inc. (the \"Company\" or \"Upbound\") (NASDAQ:UPBD) today announced results for the quarter ended March 31, 2023.\n\n\n\"The first quarter was a promising start to the year for the Company. Although external conditions remain uncertain our businesses performed better than expected. Demand for our leasing solutions and top line trends at both the Rent-A-Center Business and Acima segments were consistent with our outlook despite a muted tax season, while effective underwriting and account management drove sequential improvement in loss rates. These factors, combined with cost management efforts, contributed to first quarter Non-GAAP earnings per share that exceeded the assumptions underlying our 2023 outlook,\" said CEO Mitch Fadel.\n\n\n\"Looking forward to the rest of the year, we remain cautiously optimistic. Considering our performance so far this year, the health of our portfolio following a year of tighter underwriting standards and our assessment of the still uncertain external environment, we are raising our full-year 2023 Adjusted EBITDA and Non-GAAP EPS outlook,” concluded Mr. Fadel.\n\n\nFirst Quarter Consolidated Results\n\n\n\nFirst quarter 2023 consolidated revenues of $1.016 billion decreased 12.4% year-over-year, with rentals and fees revenue and merchandise sales revenue contributing similar amounts to the decrease. Rentals and fees revenues decreased 8.6%, primarily due to a lower lease portfolio value for the Acima Segment in the current year period. Merchandise sales revenue decreased 30.0%, primarily due to fewer customers electing early payouts at both segments potentially attributable to lower tax refunds this year.\n\n\n\n\nGAAP operating loss for the first quarter of 2023 was $35.1 million and included $127.6 million of pre-tax costs relating to special items described below, compared to $11.0 million of GAAP operating profit and $70.1 million of pre-tax costs relating to special items in the prior year period. The decrease in GAAP operating pro...