Upbound Group, Inc. · NASDAQ:UPBD
Upbound — Rent A Center Inc DE — Q2 2021 Earnings Presentation
18 slides from Upbound's earnings presentation, Aug 5, 2021
Slide 1: Rent-A-Center: Second Quarter 2021 Earnings Review
Rent-A-Center: Second Quarter 2021 Earnings Review
Slide 2: Important Notices
Important Notices 2 Forward-Looking Statements This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, statements regarding our goals, plans and projections with respect to our operations, financial p
Slide 3: Strong Performance and Momentum
3 Strong Performance and Momentum Key Metrics – 2021 Second Quarter Fundamentals Remain Strong Q2 2020 Q2 2021 Customers Rent-A-Center /Franchise/Mexico Acima Q2 2020 Q2 2021 Rent-A-Center Business Portfolio Macro environment remains constructive Customer trends are favorable: Rent-A-Center Busi
Slide 4: Evolving Secular Growth Story: Leading Omni-Channel Lease-To-Own
4 Evolving Secular Growth Story: Leading Omni-Channel Lease-To-Own Small Payments Gaining in Popularity Among Consumers Large Underserved Customer Base: ~40%- 50% of U.S. consumers have below average credit Technology Driven Business: Estimated 50%1 RCII Revenues are Digital RCII has identified ~50
Slide 5: 2021 Second Quarter Highlights
5 2021 Second Quarter Highlights 1 Non-GAAP financial measure. Refer to explanations and reconciliations elsewhere in this presentation. 24.4% 0% 5% 10% 15% 20% 25% 30% Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Rent-A-Center Business 2-Year Same Store Sales 43.3% 0% 10% 20% 30% 40% 50% Q1 '20 Q2 '20
Slide 6: ACIMA: Mission and Values
ACIMA: MISSION AND VALUES ~ Accelerate customer origination process = Provide ability for acustomer to seamlessly acquire a lease account and shopping line ~ Access to profile and account anywhere to make It easy to shop, pay, and manage ~ Fast and consistent checkout process acima Bring consumers a
Slide 7: ACIMA: New Shopping Paradigm for the Financially Underserved
7 ACIMA: New Shopping Paradigm for the Financially Underserved Ecosystem Opportunity Durable Goods Retail Outlets Offering LTO Millions Estimated Total Addressable Market $40-$50B 40-50K Approaching $100B The Acima digital ecosystem provides partners and customers a platform to connect and transact
Slide 8: Q2 ACIMA Highlights
8 Q2 ACIMA Highlights Q2 revenues of $635 million +232% vs. last year; pro- forma revenue growth 29.7% Pro forma GMV +43% vs. last year led by new virtual retail partner additions and organic growth Adjusted EBITDA1 $87 million with Adjusted EBITDA margin of 13.7% vs. pro forma Adjusted EBITDA $6
Slide 9: Rent-A-Center Business Financial Highlights
9 Rent-A-Center Business Financial Highlights Rent-A-Center Business Same Store Sales Digital acceleration in the RAC business has generated over 36% growth in e-commerce revenues in the first half of 2021 Q2 2021 Highlights Same Store Sales: +16.6% year over year (+24.4% on a 2-year basis); 14th
Slide 10: Rent-A-Center Business: Driving Sustainable, Profitable Growth
10 Rent-A-Center Business: Driving Sustainable, Profitable Growth 2021E Assumptions 2021 Financial targets Same store sales expected to be low double digit range for the back half of the year Skip/stolen losses projected in the range of 3.0% for remainder of the year Adjusted EBITDA margin rat
Slide 11: Q2 2021 Financial Highlights
11 Q2 2021 Financial Highlights Consolidated Revenue growth +74.6% vs. last year; pro forma revenue growth +21.6% vs. last year Adjusted EBITDA1: $182M +139.6%; pro forma growth +40.8% Adjusted EBITDA margin: 15.2% of revenue, +410 bps vs. last year Non-GAAP Diluted EPS1: $1.63, +104% vs. la
Slide 12: 2021 Increased Guidance
12 2021 Increased Guidance Annual Guidance Consolidated 1,2 Low High Revenues ($bn) $4.550 $4.670 Adjusted EBITDA ($mm) 4 $660 $700 % revenues 14.5% 15.0% Diluted Non-GAAP EPS 4 $5.90 $6.40 Free Cash Flow ($mm) 3,4 $300 $350 Acima Segment (includes Preferred Lease) 1 Revenues ($bn) $2.340 $2.420 Adj
Slide 13: Capital Allocation Priorities And Long Term Financial Targets
13 Funding current business and investing in organic growth opportunities I Opportunistic value enhancing M&AII Return capital to shareholders through a combination of dividends and share repurchases III Capital Allocation Priorities And Long Term Financial Targets Mid-Teens Consolidated Adj. EBITDA
Slide 14: Question and Answer
Question and Answer
Slide 15: Q2 2021 Financial Highlights
15 Q2 2021 Financial Highlights 1 Non-GAAP financial measure. Refer to explanations and reconciliations elsewhere in this presentation. Q2 2021 In millions, except percentages and EPS Actual % of Total Revenue Rent-A-Center Business $506 42.4% Acima $635 53.2% Franchising $38 3.1% Mexico $15 1.3% To
Slide 16: Reconciliation Of Net Earnings Per Share To Non-GAAP Diluted Earnings Per Share
16 Reconciliation Of Net Earnings Per Share To Non-GAAP Diluted Earnings Per Share 1 Refer to slide 17 for additional details (in thousands, except per share data) Amount Per Share Amount Per Share Net Earnings 61,309$ 0.90$ 38,493$ 0.70$ Special items, net of taxes Other charges 1 58,382 0.87 5,818
Slide 17: Reconciliation Of Operating Profit To Adjusted EBITDA
17 Reconciliation Of Operating Profit To Adjusted EBITDA (Consolidated And By Segment) (in thousands) Rent-A-Center Business Acima Mexico Franchising Corporate Consolidated GAAP Operating Profit (Loss) 85,132$ 6,233$ 1,052$ 3,029$ (41,811)$ 53,635$ Plus: Amortization, Depreciation 4,876 474 95 10 8,
Slide 18: Reconciliation Of Net Cash Provided By Operating Activities To Free Cash Flow
18 Reconciliation Of Net Cash Provided By Operating Activities To Free Cash Flow (in thousands) 2020 2020 Net cash provided by operating activities 114,725$ 207,319$ 250,518$ 254,719$ Purchase of property assets (14,013)$ (5,599) (25,401) (14,750) Hurricane insurance recovery proceeds - 158 - 158 Fr