Prog Holdings, Inc. · NYSE:PRG
Prog — Q1 2023 Earnings Presentation
27 slides from Prog's earnings presentation, Apr 26, 2023
Slide 1: PROG Holdings, Inc. Q1 2023 Earnings Supplement
PROG Holdings, Inc. Q1 2023 Earnings Supplement* APRIL 26, 2023 *This version of the PROG Holdings Q1 2023 Earnings Supplement replaces an earlier version to correct the range of Earnings Before Taxes for Progressive Leasing set forth in the Company’s Revised 2023 Outlook on slide 11 and within the
Slide 2: Use of Forward-Looking Statements
Use of Forward-Looking Statements Statements in this presentation 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. S
Slide 3: PROG Holdings Q1 2023 Headlines
PROG Holdings Q1 2023 Headlines • Raised consolidated earnings outlook for full-year 2023 • Consolidated revenues of $655.1 million; earnings before taxes of $67.6 million • Adjusted EBITDA of $89.7 million or 13.7% of revenues, up 38.9% year-over-year • Diluted EPS of $1.00; Non-GAAP Diluted EPS of
Slide 4: PROG Holdings Executive Commentary
PROG Holdings Executive Commentary “We're pleased with our strong start to the year, with first quarter results exceeding expectations due to a favorable shift in our lease dispositions and the decisive actions we have taken to strengthen our portfolio and reduce our operating expenses. The strength
Slide 5: PROG Holdings Q1 Consolidated Results
PROG Holdings Q1 Consolidated Results Revenue Non-GAAP EPS • Year-over-year revenue decline due in millions $710.5 $1.11 to tightened lease decisioning in $649.4 $625.8 $655.1 mid-2022, decreased customer $612.1 $0.84 demand for leasable goods, and a $0.68 year-over-year decline in the $0.57 $0.52 n
Slide 6: Progressive Leasing Q1 Segment Results
Progressive Leasing Q1 Segment Results GMV Revenue • Year-over-year GMV decline due in millions in millions to previous decisioning tightening, $692.9 $631.3 $637.1 continued soft retail traffic, and $606.6 $592.9 $540.9 lower average tax refund amounts $504.5 $494.0 $437.4 $418.7 • Revenue decline
Slide 7: Results
Results PROG Internal
Slide 8: PROG Holdings Consolidated Q1 Results
PROG Holdings Consolidated Q1 Results Three Months Ended March 31 Change 2023 2022 Revenue $655.1 $710.5 -7.8% GAAP Net Earnings $48.0 $27.1 77.1% Adjusted Net Earnings $53.4 $31.9 67.4% Adjusted EBITDA $ $89.7 $64.6 38.9% Adjusted EBITDA % 13.7% 9.1% 460bps GAAP Diluted Earnings Per Share $1.00 $0.
Slide 9: PROG Holdings Consolidated Results
PROG Holdings Consolidated Results Cash Flow Common Stock Common Stock From Operations Repurchased Repurchase Amount As of 3/31/2023 Q1 2023 Q1 2023 $157.4M 1.46M shares $36.5M Cash and Cash Gross Net Leverage Equivalents Debt Ratio* As of 3/31/2023 As of 3/31/2023 As of 3/31/2023 $249.8M $600M 1.24
Slide 10: Progressive Leasing Q1 Segment Results
Progressive Leasing Q1 Segment Results Three Months Ended March 31 Change 2023 2022 GMV $418.7 $504.5 -17.0% Revenue $637.1 $692.9 -8.1% Gross Margin % 31.7% 28.3% 340bps SG&A % 11.9% 12.4% -50bps Write-Off %* 6.0% 7.3% -130bps Adjusted EBITDA $ $90.4 $63.5 42.4% Adjusted EBITDA % 14.2% 9.2% 500bps
Slide 11: PROG Holdings Full-Year 2023 Outlook
PROG Holdings Full-Year 2023 Outlook This outlook assumes a difficult operating environment with continued soft demand for consumer durable goods, no material changes in the Company's decisioning posture, and no impact from additional share repurchases. 11 PROG Internal
Slide 12: PROG Holdings Q2 2023 Outlook
PROG Holdings Q2 2023 Outlook This outlook assumes a difficult operating environment with continued soft demand for consumer durable goods, no material changes in the Company's decisioning posture, and no impact from additional share repurchases. 12 PROG Internal
Slide 13: Appendix
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Slide 14: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures 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 United States ("GAAP"). Non-GAAP net earnings and
Slide 15: GAAP to non-GAAP Reconciliation Tables
GAAP to non-GAAP Reconciliation Tables 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) PROG Internal
Slide 16: GAAP to non-GAAP Reconciliation Tables
GAAP to non-GAAP Reconciliation Tables 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) PROG Internal
Slide 17: GAAP to non-GAAP Reconciliation Tables
GAAP to non-GAAP Reconciliation Tables Non-GAAP Financial Information Annual Segment EBITDA (In thousands) PROG Internal
Slide 18: GAAP to non-GAAP Reconciliation Tables
GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Quarterly Segment EBITDA (In thousands) PROG Internal
Slide 19: GAAP to non-GAAP Reconciliation Tables
GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Quarterly Segment EBITDA (In thousands) PROG Internal
Slide 20: GAAP to non-GAAP Reconciliation Tables
GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Adjusted EBITDA % PROG Internal
Slide 21: GAAP to non-GAAP Reconciliation Tables
GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Reconciliation of Revised Full Year 2023 Outlook for Adjusted EBITDA (In thousands) PROG Internal
Slide 22: GAAP to non-GAAP Reconciliation Tables
GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Reconciliation of Previous Full Year 2023 Outlook for Adjusted EBITDA (In thousands) PROG Internal
Slide 23: GAAP to non-GAAP Reconciliation Tables
GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Reconciliation of the Three Months Ended June 30, 2023 Outlook for Adjusted EBITDA (In thousands) PROG Internal
Slide 24: GAAP to non-GAAP Reconciliation Tables
GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Reconciliation of Revised Full Year 2023 Outlook for Earnings Per Share Assuming Dilution to Non-GAAP Earnings Per Share Assuming Dilution PROG Internal
Slide 25: GAAP to non-GAAP Reconciliation Tables
GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Reconciliation of Previous Full Year 2023 Outlook for Earnings Per Share Assuming Dilution to Non-GAAP Earnings Per Share Assuming Dilution PROG Internal
Slide 26: GAAP to non-GAAP Reconciliation Tables
GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Reconciliation of the Three Months Ended June 30, 2023 Outlook for Earnings Per Share Assuming Dilution to Non-GAAP Earnings Per Share Assuming Dilution PROG Internal
Slide 27: PROG Internal
PROG Internal