Prog Holdings, Inc. · NYSE:PRG
Prog — Q2 2024 Earnings Presentation
28 slides from Prog's earnings presentation, Jul 24, 2024
Slide 1: PROG Holdings, Inc. Q2 2024 Earnings Supplement
PROG Holdings, Inc. Q2 2024 Earnings Supplement July 24, 2024 PROG Internal
Slide 2: Use of Forward-Looking Statements
Use of Forward-Looking Statements Statements in this earnings supplement 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 statem
Slide 3: PROG Holdings Q2 2024 Headlines
PROG Holdings Q2 2024 Headlines • Progressive Leasing GMV of $454.5 million, up 7.9% year-over-year • Consolidated revenues of $592.2 million • Earnings before taxes of $48.3 million • Adjusted EBITDA of $72.3 million • Diluted EPS of $0.77; Non-GAAP Diluted EPS of $0.92 • Raises full year consolida
Slide 4: PROG Holdings Executive Commentary
PROG Holdings Executive Commentary "We are pleased to report a strong second quarter that exceeded our outlook on all key metrics, particularly on GMV which grew 7.9% year-over-year" said PROG Holdings President and CEO Steve Michaels. "Second quarter GMV growth reflects our continued investment in
Slide 5: PROG Holdings Q2 Consolidated Results
PROG Holdings Q2 Consolidated Results Revenue Non-GAAP EPS in millions $641.9 $592.8 $582.9 $577.4 $592.2 $0.92 $0.90 $0.91 $0.92 $0.72 • Non-GAAP EPS continued to benefit from disciplined spend and a reduction of outstanding shares Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2 2023 Q3 2023 Q4 2023 Q1
Slide 6: Progressive Leasing Q2 Segment Results
Progressive Leasing Q2 Segment Results GMV Revenue in millions in millions • Year-over-year GMV was up 7.9% which was better than expectations $620.6 $547.6 $574.8 $564.2 $557.5 $570.5 for a low single digit percentage $454.5 increase $421.2 $409.2 $418.5 • Revenue declined less than 1% year- over-y
Slide 7: Results
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Slide 8: PROG Holdings Consolidated Q2 Results
PROG Holdings Consolidated Q2 Results Three Months Ended June 30 Change 2024 2023 Revenue $592.2 $592.8 -0.1% GAAP Net Earnings $33.8 $37.2 -9.1% Adjusted Net Earnings $40.2 $43.1 -6.7% Adjusted EBITDA $ $72.3 $75.0 -3.6% Adjusted EBITDA % 12.2% 12.7% -50 bps GAAP Diluted Earnings Per Share $0.77 $0
Slide 9: PROG Holdings Consolidated Results: Cash Flow, Repurchases, Leverage
PROG Holdings Consolidated Results Cash Flow Shares of Common Common Stock From Operations Stock Repurchased Repurchase Amount Six Months Ended 6/30/2024 Q2 2024 Q2 2024 $191.1M 1.0M $36.7M Cash and Cash Gross Net Leverage Equivalents Debt Ratio* As of 6/30/2024 As of 6/30/2024 As of 6/30/2024 $250.
Slide 10: Progressive Leasing Q2 Segment Results
Progressive Leasing Q2 Segment Results Three Months Ended June 30 Change 2024 2023 GMV $454.5 $421.2 7.9% Revenue $570.5 $574.8 -0.7% Gross Margin % 32.6% 33.0% -40 bps SG&A % 13.0% 13.6% -60 bps Write-Off %* 7.7% 7.1% 60 bps Adjusted EBITDA $ $73.8 $75.6 -2.4% Adjusted EBITDA % 12.9% 13.2% -30 bps
Slide 11: PROG Holdings Full-Year 2024 Outlook
PROG Holdings Full-Year 2024 Outlook This outlook assumes a continuation of the benefits from tightened credit above us, a difficult operating environment with soft demand for leasable consumer goods, no material changes in the Company's decisioning posture, no material increase in the unemployment
Slide 12: PROG Holdings Q3 2024 Outlook
PROG Holdings Q3 2024 Outlook This outlook assumes a continuation of the benefits from tightened credit above us, a difficult operating environment with soft demand for leasable consumer goods, no material changes in the Company's decisioning posture, no material increase in the unemployment rate fo
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 diluted earnings
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. Non-GAAP Financial Information Quarterly Segment EBITDA (In thousands)
Slide 19: 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 20: 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 21: GAAP to non-GAAP Reconciliation Tables
GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Consolidated & Progressive Leasing Adjusted EBITDA %
Slide 22: GAAP to non-GAAP Reconciliation Tables
GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Reconciliation of Revised Full Year 2024 Outlook for Adjusted EBITDA (In thousands)
Slide 23: 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 2024 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 the Three Months Ended September 30, 2024 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 Revised Full Year 2024 Outlook for Earnings Per Share Assuming Dilution to Non-GAAP Earnings Per Share Assuming Dilution
Slide 26: 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 2024 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 the Three Months Ended September 30, 2024 Outlook for Earnings Per Share Assuming Dilution to Non-GAAP Earnings Per Share Assuming Dilution
Slide 28: PROG Internal
PROG Internal