Prog Holdings, Inc. · NYSE:PRG
Prog — Aaron'S — Merger or Acquisition (July 2020)
13 slides from Prog's merger presentation, Jul 29, 2020
Slide 1: Announces Intent to Separate Into Two Public Companies
Exhibit 99.3 Announces Intent to Separate Into Two Public Companies July 29, 2020
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Forward-Looking Statements Statement under the Private Securities Litigation Reform Act of 1995: Statements in this presentation that are not historical facts are "forward-looking statements" that involve risks and uncertainties which could cause actual results to differ materi
Slide 3: Overview: Intends to Separate into Two Independent Publicly-Traded Companies
OVERVIEW Intends to Separate into Two Independent, Highly-Focused Publicly-Traded Companies Comprised of ~1,400 company-operated and Comprised of Progressive Leasing and Vive Financial franchised stores in 47 U.S. States & Canada, the e- commerce platform Aarons.com, & Woodhaven Furniture Industries
Slide 4: Progressive at a Glance
PROGRESSIVE AT A GLANCE Key 2019 Highlights** Select Merchant Partnerships $2.2 Billion $269 Million $1.8 Billion Invoice* Revenue Adj. EBITDA 20.2% Growth 19.6% Growth 23.2% Growth* Adj. EBITDA Margin of Write-offs* 1.1 Million Customers 12.4% 7.2% of Net Revenue 22.4% Growth Key Investment Highlig
Slide 5: Progressive Leadership Team
PROGRESSIVE LEADERSHIP TEAM • Named Chief Financial Officer and President of Strategic Operations of Aaron’s, Inc. in February of 2016 STEVE MICHAELS • Oversees several key business functions including analytics, business development and manufacturing • Previously served as Aaron’s President from Ap
Slide 6: Aaron's at a Glance
AARON’S AT A GLANCE Aaron’s offers a compelling customer value proposition and an attractive, recurring revenue business model Key 2019 Highlights* Strategic Priorities Utilize technology to simplify and digitize the customer experience $1.8 Billion $166 Million SSR of 0%, Revenue Adj. EBITDA 136 bp
Slide 7: Aaron's Business Leadership Team
AARON’S BUSINESS LEADERSHIP TEAM • Served as Aaron’s Business President of Sales & Lease Ownership since February 2016 • More than 20 years of experience leading companies in the financial services and real estate industries DOUGLAS LINDSAY • Former CFO and COO of Ace Cash Express Chief Executive Of
Slide 8: Pathway to Completion
PATHWAY TO COMPLETION Transaction Planned as a tax-free spin-off of the Aaron’s Business to the Company’s shareholders Structure Financial Until the separation is complete, Aaron’s, Inc. expects to continue to pay its regular quarterly cash dividend Implications Each company will set its own c
Slide 9: 2019 Financials
2019 FINANCIALS Progressive ($ millions) Aaron's Business Consolidated + Vive Full presentations Total Revenues $ 2,163 $ 1,784 $ 3,947 detailing balance sheets and financial and operational YoY Growth 19.6% -0.5% 9.6% characteristics for both companies will be provided prior to separation Adjusted
Slide 10: Appendix
Aaron's Inc. APPENDIX
Slide 11: Reconciliation of Non-GAAP Items: Revenue by Segment
Reconciliation of Non-GAAP Items: 2018 - 2019 REVENUE BY SEGMENT ($ 000s) Progressive + Vive Aaron's Business Consolidated Year Ending December 31, 2019 Lease Revenues and Fees $ 2,128,133 $ 1,570,358 $ 3,698,491 Retail Sales - 38,474 38,474 Non-Retail Sales - 140,950 140,950 Franchise Royalties and
Slide 12: Reconciliation of Non-GAAP Items: Adjusted EBITDA
Reconciliation of Non-GAAP Items: 2018 - 2019 ADJUSTED EBITDA RECONCILIATION ($ 000s) Progressive + Vive Aaron's Business Consolidated Year Ending December 31, 2019 Net Earnings $ 31,472 Income Taxes (1) 61,316 Earnings Before Income Taxes $ 46,057 $ 46,731 $ 92,788 Interest Expense 12,099 4,868 16,
Slide 13: Aaron's Inc.
Aarons Inc.