Upbound Group, Inc. · NASDAQ:UPBD
Upbound — Rent A Center Inc DE — Q3 2021 Earnings Presentation
20 slides from Upbound's earnings presentation, Nov 5, 2021
Slide 1: Rent-A-Center: Third Quarter 2021 Earnings Review
Rent-A-Center: Third 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: Evolving Landscape for Payment Solutions
3 Evolving Landscape for Payment Solutions Payment Solution Consumer Value Proposition Inclusivity Fl ex ib ili ty Proliferation of Payment Solutions for Consumers Cash Credit Debit Cash Debit CreditDigital / App BNPL LTO Old Paradigm New Paradigm
Slide 4: RCII's LTO Omni-Channel Flywheel
Lease Management Learnings Iterate Transaction Volume Retail Merchant Network Consumer Ecosystem 4 LTO Omni-Channel Opportunity Significant Earnings Power UpsideRCII’s LTO Omni-Channel Flywheel 2021 Non-GAAP EPS Outlook $5.90 - $6.15 Incremental Revenue Potential Margin Expansion Potential Return of
Slide 5: 2021 Third Quarter Highlights
5 2021 Third Quarter Highlights 1 Non-GAAP financial measure. Refer to explanations and reconciliations elsewhere in this presentation. Note: Same store sale methodology - Same store sales generally represents revenue earned in stores that were operated by us for 13 months or more and are reported o
Slide 6: Strong Performance and Momentum
6 Strong Performance and Momentum Key Metrics – 2021 Third Quarter Fundamentals Remain Strong Q3 2020 Q3 2021 Customers Rent-A-Center /Franchise/Mexico Acima Q3 2020 Q3 2021 Rent-A-Center Business Portfolio ◼Revenue and adjusted EBITDA growing despite macro environment normalizing and supply chain d
Slide 7: ACIMA: Mission and Values
ACIMA: MISSION AND VALUES ~ Accelerate customer origination process = Provide ability for acustomer to seamlessly acquire a lease account acima Bring consumers and retailers together in an ecosystem that empowers consumers and unlocks access to a network of anywhere to make It easy to shop, pay, and
Slide 8: ACIMA: New Shopping Paradigm for the Financially Underserved
8 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 9: Q3 ACIMA Highlights
9 Q3 ACIMA Highlights ◼Q3 revenues of $623 million +209% vs. last year; pro- forma revenue growth +17% ◼Pro forma GMV +19% vs. last year led by new virtual retail partner additions and organic growth ◼Adjusted EBITDA1 $86 million with Adjusted EBITDA margin of 13.9% vs. pro forma Adjusted EBITDA $88
Slide 10: Rent-A-Center Business Financial Highlights
10 Rent-A-Center Business Financial Highlights Rent-A-Center Business Same Store Sales Digital acceleration in the RAC business has generated over 26% growth in e-commerce revenues through the third quarter of 2021 Q3 2021 Highlights ◼ Same Store Sales: +12.3% year over year (+25.2% on a 2-year basi
Slide 11: Rent-A-Center Business: Driving Sustainable, Profitable Growth
11 Rent-A-Center Business: Driving Sustainable, Profitable Growth 2021E Assumptions 2021 Financial targets ◼ Same store sales expected to be in the low double-digit range for the fourth quarter ◼ Skip/stolen losses projected in the mid 3% range for the fourth quarter ◼ Adjusted EBITDA margin maintai
Slide 12: Q3 2021 Financial Highlights
12 Q3 2021 Financial Highlights Consolidated ▪ Revenue growth +65.9% vs. last year; pro forma revenue growth +13.3% vs. last year ▪ Adjusted EBITDA1: $170M, +84.7%; pro forma growth +4.1% ▪ Adjusted EBITDA margin: 14.4% of revenue, +150 bps vs. last year ▪ Non-GAAP Diluted EPS1: $1.52, +46% vs. last
Slide 13: 2021 Guidance
13 2021 Guidance Annual Guidance Consolidated 1,2 Low High Revenues ($bn) $4.550 $4.640 Adjusted EBITDA ($mm) 4 $645 $675 % revenues 14.2% 14.5% Diluted Non-GAAP EPS 4 $5.90 $6.15 Free Cash Flow ($mm) 3,4 $280 $320 Acima Segment (includes Preferred Lease) 1 Revenues ($bn) $2.320 $2.380 Adjusted EBIT
Slide 14: Capital Allocation Priorities
14 Return capital to shareholders through a combination of dividends and share repurchases Funding current business and investing in organic growth opportunities I Opportunistic value enhancing M&AII III Capital Allocation Priorities Focused on driving long-term value creation
Slide 15: Question and Answer
Question and Answer
Slide 16: Appendix
Appendix
Slide 17: Q3 2021 Financial Highlights
17 Q3 2021 Financial Highlights 1 Non-GAAP financial measure. Refer to explanations and reconciliations elsewhere in this presentation. Q3 2021 In millions, except percentages and EPS Actual % of Total Revenue Rent-A-Center Business $501 42.4% Acima $623 52.8% Franchising $41 3.5% Mexico $16 1.3% To
Slide 18: Reconciliation Of Net Earnings Per Share To Non-GAAP Diluted Earnings Per Share
18 Reconciliation Of Net Earnings Per Share To Non-GAAP Diluted Earnings Per Share 1 Refer to slide 17 for additional details (in thousands, except per share data) Amount Per Share Amount Per Share Net Earnings 21,267$ 0.31$ 64,030$ 1.15$ Special items, net of taxes Other charges 1 81,734 1.20 (1,34
Slide 19: Reconciliation Of Operating Profit To Adjusted EBITDA
19 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) 99,950$ 16,073$ 1,724$ 3,146$ (40,706)$ 80,187$ Plus: Amortization, Depreciation 4,926 541 104 15
Slide 20: Reconciliation Of Net Cash Provided By Operating Activities To Free Cash Flow
20 Reconciliation Of Net Cash Provided By Operating Activities To Free Cash Flow (in thousands) 2020 2020 Net cash provided by operating activities 75,686$ 41,507$ 326,204$ 296,226$ Purchase of property assets (20,475)$ (7,807) (45,876) (22,557) Hurricane insurance recovery proceeds - - - 158 Free c