Slide 1: First Quarter Earnings Review
™ First Quarter Earnings Review May 2, 2024
Slide 2: Disclosures
Disclosures Forward-Looking Statements This communication contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including, among others, statements regarding our goals, plans and projections with respect to our operations, financial posi
Slide 3: Q1 Consolidated Highlights
Q1 Consolidated Highlights Q1 Financial Results Q1 Trends & Developments • Consolidated revenues of $1,096.0 million, +7.9% y/y • Consolidated revenue increased y/y and sequentially, with Rent-A- Center returning to topline growth in the quarter • Operating profit of $61.8 million, +$96.9 million y/
Slide 4: Q1 Business Segment Highlights
Q1 Business Segment Highlights Acima Rent-A-Center • GMV increased nearly 20% y/y for the second consecutive • Returned to revenue growth; highest segment revenue since quarter Q2 2022 • Q1 2024 +19.9% y/y, improved from +19.0% y/y in Q4 • Q1 2024 +0.2% y/y vs. -1.7% y/y in Q4 2023 2023 • Same store
Slide 5: 2024 Strategic Priorities
2024 Strategic Priorities Optimize Digital Customer Operational Synergies Grow Market Share Improve business efficiency through Expand our retail partnerships and Experience Deliver digital solutions that improve optimization of processes, talent, direct to consumer solutions and technology across a
Slide 6: Q1 2024 Consolidated Financial Highlights
Q1 2024 Consolidated Financial Highlights Q1 2024 Financial Results Q1 2024 $’s millions, except percentages and EPS Actual % of Total Revenue • Revenue: $1,096.0 million, +7.9% y/y Rent-A-Center $485.8 44.3% Acima $561.3 51.2% • Operating profit: $61.8 million, +$96.9 million y/y Franchising $28.3
Slide 7: Acima Q1 Highlights
Acima Q1 Highlights Acima GMV Trend ($M) Financial Results • GMV increased 19.9% y/y and improved sequentially from 19.0% in Q4 2023, led by year-over-year growth in application volume resulting from expanding merchant network and merchant penetration • Q1 revenues of $561.3 million, +16.0% y/y, dri
Slide 8: Rent-A-Center Q1 Highlights
Rent-A-Center Q1 Highlights Financial Results Rent-A-Center Portfolio3,4 and Same Store Sales Trends ($M) • Revenue of $485.8 million, +0.2% y/y driven primarily by a 0.8% y/y increase in rentals and fees revenue, offset partially by a 3.6% y/y decrease in merchandise sales resulting from fewer cust
Slide 9: Full Year 2024 Guidance
Full Year 2024 Guidance GMV and portfolio growth drive higher revenue with consistent Adjusted EBITDA margins2 Table 1 Consolidated Guidance1 Full Year 2024 Revenues ($B) $4.00 - $4.20 Adj. EBITDA Excluding SBC ($M)2 $455 - $485 Non-GAAP Diluted Earnings Per Share2,3 $3.55 - $4.00 Free Cash Flow ($M
Slide 10: Capital Allocation & Financial Position
Capital Allocation & Financial Position Capital Allocation Balance Sheet & Liquidity • Distributed quarterly dividend of $0.37 per share, or $1.48 annualized, increased from $0.34 in Q4 2023 ($’s millions) As of 03/31/24 Liquidity $521.5 • Focused on reaching long-term target leverage ratio of 1.5x
Slide 11: Key Takeaways
Key Takeaways DRAFT Strong Q1 results Risk management & disciplined underwriting • Y/Y revenue growth at both Acima and RAC • RAC lease charge-offs (LCO) improved 10bps y/y • Two consecutive quarters of 19%+ GMV growth at Acima • Acima losses lower than expected, but remain elevated as Acceptance No
Slide 12: Appendix
upb ound Appendix
Slide 13: Reconciliation of Net Earnings to Net Earnings Excluding Special Items and Non-GAAP Diluted EPS
Reconciliation of Net Earnings to Net Earnings Excluding Special Items and Non-GAAP Diluted Earnings Per Share Three Months Ended March 31, 2024 Earnings Diluted Operating Before Earnings per (In thousands) Gross Profit Profit Income Tax Tax Expense Net Earnings Share GAAP Results $ 529,068 $ 61,762
Slide 14: Reconciliation of Net Earnings to Net Earnings Excluding Special Items and Non-GAAP Diluted EPS
Reconciliation of Net Earnings to Net Earnings Excluding Special Items and Non-GAAP Diluted Earnings Per Share Three Months Ended March 31, 2023 (Loss) Earnings Diluted Operating Before Income Earnings per (In thousands) Gross Profit (Loss) Profit Tax Tax Expense Net Earnings Share GAAP Results $ 50
Slide 15: Reconciliation of Net Earnings (Loss) to Adjusted EBITDA (Consolidated and by Segment)
Reconciliation of Net Earnings (Loss) to Adjusted EBITDA (Consolidated and by Segment) Three Months Ended March 31, 2024 (In thousands) Acima Rent-A-Center Mexico Franchising Corporate Consolidated Net earnings (loss) $ 51,911 $ 74,774 $ 1,696 $ 3,364 $ (104,058) $ 27,687 Plus: Interest, net — — — —
Slide 16: Reconciliation of Net Earnings (Loss) to Adjusted EBITDA (Consolidated and by Segment)
Reconciliation of Net Earnings (Loss) to Adjusted EBITDA (Consolidated and by Segment) Three Months Ended March 31, 2023 (In thousands) Acima Rent-A-Center Mexico Franchising Corporate Consolidated Net earnings (loss) $ 53,870 $ 68,961 $ 995 $ 4,760 $ (81,256) $ 47,330 Plus: Interest, net — — — — 27
Slide 17: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow Three Months Ended March 31, (in thousands) 2024 2023 Net cash provided by operating activities $ 45,421 $ 105,417 Purchase of property assets (11,817) (9,534) Free cash flow $ 33,604 $ 95,883 17
Slide 18: Supplemental Segment Performance Details – GAAP
Supplemental Segment Performance Details – GAAP Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Rent-A- Rent-A- (in millions) Acima Center Mexico Franchise Corporate Consolidated (in millions) Acima Center Mexico Franchise Corporate Consolidated Revenue Revenue Rentals and fees $
Slide 19: Supplemental Segment Performance Details – Including Non-GAAP Adjustments
Supplemental Segment Performance Details – Including Non-GAAP Adjustments Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Rent-A- Rent-A- (in millions) Acima Center Mexico Franchise Corporate Consolidated (in millions) Acima Center Mexico Franchise Corporate Consolidated Revenue