Prog Holdings, Inc. · NYSE:PRG
Prog — Q3 2023 Earnings Presentation
29 slides from Prog's earnings presentation, Oct 25, 2023
Slide 1: PROG Holdings, Inc. Q3 2023 Earnings Supplement
PROG Holdings, Inc. Q3 2023 Earnings Supplement October 25, 2023
Slide 2: Use of Forward-Looking Statements
Use of Forward-Looking Statements Statements in this news release regarding our business that are not historical facts are “forward-looking statements” that involve risks and uncertainties which could cause actual results to differ materially from those contained in the forward-looking statements. S
Slide 3: PROG Holdings Q3 2023 Headlines
PROG Holdings Q3 2023 Headlines • Beat Q3 2023 outlook, raised consolidated earnings outlook for full-year 2023 • Consolidated revenues of $582.9 million • Earnings before taxes of $48.1 million • Adjusted EBITDA of $71.7 million, increase of 10.4% year-over-year • Diluted EPS of $0.76; Non-GAAP Dil
Slide 4: PROG Holdings Executive Commentary
PROG Holdings Executive Commentary "PROG Holdings’ third quarter results exceeded expectations once again, as our teams continued to deliver strong portfolio performance alongside disciplined SG&A management. “The active management of our lease portfolio and our customers’ ability to adapt to a high
Slide 5: PROG Holdings Q3 Consolidated Results
PROG Holdings Q3 Consolidated Results Revenue Non-GAAP EPS • Year-over-year revenue was in millions primarily impacted by a lower Gross $1.11 $625.8 $655.1 Leased Asset balance throughout $612.1 $592.8 $582.9 $0.84 $0.92 $0.90 the quarter, slow retail traffic in key $0.68 consumer durables, and year
Slide 6: Progressive Leasing Q3 Segment Results
Progressive Leasing Q3 Segment Results GMV Revenue in millions in millions • Year-over-year GMV decline was primarily due to continued weak $637.1 $606.6 $592.9 demand for leasable goods. $574.8 $564.2 $540.9 $437.4 $418.7 $421.2 $409.2 • Revenue declined year-over-year primarily due to a decrease i
Slide 7: Results
PROG Holdings, Inc.
Slide 8: PROG Holdings Consolidated Q3 Results
PROG Holdings Consolidated Q3 Results Three Months Ended Change September 30 2023 2022 Revenue $582.9 $625.8 -6.9% GAAP Net Earnings $35.0 $16.0 118.8% Adjusted Net Earnings $41.7 $34.6 20.5% Adjusted EBITDA $ $71.7 $65.0 10.4% Adjusted EBITDA % 12.3% 10.4% 190 bps GAAP Diluted Earnings Per Share $0
Slide 9: PROG Holdings Consolidated Results
PROG Holdings Consolidated Results Cash Flow Shares of Common Common Stock From Operations Stock Repurchased Repurchase Amount As of 9/30/2023 Q3 2023 Q3 2023 $292.5M 1M $36.4M Cash and Cash Gross Net Leverage Equivalents Debt Ratio* As of 9/30/2023 As of 9/30/2023 As of 9/30/2023 $294.8M $600M 0.98
Slide 10: Progressive Leasing Q3 Segment Results
Progressive Leasing Q3 Segment Results Three Months Ended Change September 30 2023 2022 GMV $409.2 $437.4 -6.4% Revenue $564.2 $606.6 -7.0% Gross Margin % 32.3% 30.3% 200 bps SG&A % 13.7% 12.4% 130 bps Write-Off %* 6.6% 7.2% -60 bps Adjusted EBITDA $ $74.8 $68.4 9.4% Adjusted EBITDA % 13.3% 11.3% 20
Slide 11: PROG Holdings Full-Year 2023 Outlook
PROG Holdings Full-Year 2023 Outlook This outlook assumes continued soft demand for consumer durable goods, no material changes in the Company's decisioning posture or portfolio performance, and no impact from additional share purchases. 11
Slide 12: PROG Holdings Q4 2023 Outlook
PROG Holdings Q4 2023 Outlook This outlook assumes continued soft demand for consumer durable goods, no material changes in the Company's decisioning posture or portfolio performance, and no impact from additional share purchases. 12
Slide 13: Appendix
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Slide 14: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Non-GAAP net earnings, non-GAAP diluted earnings per share, and adjusted EBITDA are supplemental measures of our performance that are not calculated in accordance with generally accepted accounting principles in the United States ("GAAP"). Non-GAAP net earnings and
Slide 15: GAAP to non-GAAP Reconciliation Tables
GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Reconciliation of Net Earnings and Earnings Per Share Assuming Dilution to Non-GAAP Net Earnings and Earnings Per Share Assuming Dilution (In thousands, except per share amounts)
Slide 16: GAAP to non-GAAP Reconciliation Tables
GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Reconciliation of Net Earnings and Earnings Per Share Assuming Dilution to Non-GAAP Net Earnings and Earnings Per Share Assuming Dilution (In thousands, except per share amounts)
Slide 17: GAAP to non-GAAP Reconciliation Tables
GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Reconciliation of Net Earnings and Earnings Per Share Assuming Dilution to Non-GAAP Net Earnings and Earnings Per Share Assuming Dilution (In thousands, except per share amounts)
Slide 18: GAAP to non-GAAP Reconciliation Tables
GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Reconciliation of Net Earnings and Earnings Per Share Assuming Dilution to Non-GAAP Net Earnings and Earnings Per Share Assuming Dilution (In thousands, except per share amounts)
Slide 19: GAAP to non-GAAP Reconciliation Tables
GAAP to non-GAAP Reconciliation Tables Non-GAAP Financial Information Annual Segment EBITDA (In thousands)
Slide 20: GAAP to non-GAAP Reconciliation Tables
GAAP to non-GAAP Reconciliation Tables Non-GAAP Financial Information Annual Segment EBITDA (In thousands)
Slide 21: GAAP to non-GAAP Reconciliation Tables
GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Quarterly Segment EBITDA (In thousands)
Slide 22: GAAP to non-GAAP Reconciliation Tables
GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Adjusted EBITDA %
Slide 23: GAAP to non-GAAP Reconciliation Tables
GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Reconciliation of Revised Full Year 2023 Outlook for Adjusted EBITDA (In thousands)
Slide 24: GAAP to non-GAAP Reconciliation Tables
GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Reconciliation of Previously Revised Full Year 2023 Outlook for Adjusted EBITDA (In thousands)
Slide 25: GAAP to non-GAAP Reconciliation Tables
GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Reconciliation of the Three Months Ended December 31, 2023 Outlook for Adjusted EBITDA (In thousands)
Slide 26: GAAP to non-GAAP Reconciliation Tables
GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Reconciliation of Revised Full Year 2023 Outlook for Earnings Per Share Assuming Dilution to Non-GAAP Earnings Per Share Assuming Dilution
Slide 27: GAAP to non-GAAP Reconciliation Tables
GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Reconciliation of Previously Revised Full Year 2023 Outlook for Earnings Per Share Assuming Dilution to Non- GAAP Earnings Per Share Assuming Dilution
Slide 28: GAAP to non-GAAP Reconciliation Tables
GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Reconciliation of the Three Months Ended December 31, 2023 Outlook for Earnings Per Share Assuming Dilution to Non-GAAP Earnings Per Share Assuming Dilution
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