Upbound Group, Inc. · NASDAQ:UPBD
Upbound — Rent-A-Center — Investor Presentation (May 2018)
9 slides from Upbound's investor presentation, May 2018
Slide 1: Rent-A-Center Investor Presentation
Rent-A-Center Investor Presentation MAY 2018
Slide 2: Safe Harbor
Safe Harbor Forward-Looking Statements This press release and the guidance above contain forward-looking statements that involve risks and uncertainties. Such forward-looking statements generally can be identified by the use of forward- looking terminology such as "may," "will," "expect," "intend,"
Slide 3: The Company's Strategic Plan, which focuses on three key areas, was launched in Q1 2018
The Company’s Strategic Plan, which focuses on three key areas, was launched in the First Quarter of 2018… 1 2 3 Optimize Enhance Execute Cost Structure Value Proposition Refranchising • The Company is targeting • Targeted approach to pricing • Pursue refranchising of brick and significant cost savi
Slide 4: Significant progress across all areas of the Strategic Plan
… and the Company has made significant progress across all areas of the Strategic Plan Key Operating Highlights • Positive Same store sales across all segments in Q1 • Consolidated: 0.8%, Core U.S: 0.3%, Acceptance Now: 3.3%, Mexico: 0.7% • Reduced outstanding debt balance by $78mm in Q1 and subsequ
Slide 5: Optimize Cost Structure
1 Optimize Cost Structure The company has identified annualized cost savings opportunities of $75 to $95 million, increased from the previously communicated range of $65 to $85 million. Expected benefits ($mm) Operating Costs Net Working Capital $75-$95 $10-$15 $35-$40 $30-$40 $40-$45 Overhead Suppl
Slide 6: Enhance Value Proposition
2 Enhance Value Proposition The Company will enhance the value proposition through a more targeted approach within stores and by lowering total cost to promote ownership within Acceptance Now Core U.S. Acceptance Now • The Company deployed in Q1, a more targeted • New Value Proposition rolled out to
Slide 7: Execute on Franchising Strategy
3 Execute on Franchising Strategy Franchising will be a key element of the strategy, with the intent to pursue large scale franchising Overview Expanding Franchising is a Compelling Strategy • Began execution of this large scale franchising Provides up-front cash infusion while preserving strategy
Slide 8: Fiscal Year 2018 Targets
Fiscal Year 2018 Targets As the Company remains in the midst of a strategic and financial alternatives review process, the following targets are being provided at this time: Metric* 2018 Target Range Annualized cost $75 - $95 million1 (~ two thirds in 2018) savings Working Capital $40 - $45 million
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