Prog Holdings, Inc. · NYSE:PRG
Prog — Q4 2022 Earnings Presentation
26 slides from Prog's earnings presentation, Feb 22, 2023
Slide 1: PROG Holdings Inc Q4 2022 Earnings
PROG Holdings Inc Q4 2022 Earnings
Slide 2: Forward-looking statements
2 Statements in this presentation 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. Such forward-looking statements g
Slide 3: PROG Holdings Q4 2022 Headlines
3 PROG Holdings Q4 2022 Headlines • Consolidated revenues of $612.1 million • Consolidated earnings before taxes of of $53.7 million • Adjusted EBITDA of $74.4 million or 12.2% of revenues • Diluted EPS of $0.73; Non-GAAP Diluted EPS of $0.84, up 25% year-over-year • Progressive Leasing write-offs o
Slide 4: PROG Holdings Executive Commentary
4 "Our fourth quarter results exceeded both our top and bottom- line expectations, primarily driven by decisions made in the first half of 2022 to improve our portfolio performance and adjust our cost structure in the face of macroeconomic headwinds. During the quarter, we saw continued improvement
Slide 5: PROG Holdings Q4 Consolidated Results
$0.67 $0.57 $0.52 $0.68 $0.84 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Adjusted EBITDA in millions 5 $646.5 $710.5 $649.4 $625.8 $612.1 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Revenue in millions Non-GAAP EPS $72.1 $64.6 $52.2 $65.0 $74.4 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 11.2% 9.1% 8.0% 10.4%
Slide 6: Progressive Leasing Q4 Segment Results
$630.0 $692.9 $631.3 $606.6 $592.9 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Write-Offs* as a % of Progressive Leasing revenues 6 $634.7 $504.5 $494.0 $437.4 $540.9 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 GMV in millions 6.8% 7.3% 9.8% 7.2% 6.5% Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 10.5% 9.2% 8.1%
Slide 7: PROG Holdings, Inc.
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Slide 8: PROG Holdings Consolidated Q4 Results
8 All dollar amounts in millions except EPS GAAP to non-GAAP reconciliation tables available in appendix PROG Holdings Consolidated Q4 Results
Slide 9: PROG Holdings Consolidated Results
9*(Gross debt minus cash and cash equivalents) divided by trailing 12 month adjusted EBITDA PROG Holdings Consolidated Results Common Stock Repurchased 2022 8.7M shares Cash and Cash Equivalents As of 12/31/2022 $131.9M Gross Debt As of 12/31/2022 $600M Net Leverage Ratio* As of 12/31/2022 1.83x Cas
Slide 10: Progressive Leasing Q4 Segment Results
10 *The provision for lease merchandise write-offs as a percentage of Progressive Leasing revenue All dollar amounts in millions GAAP to non-GAAP reconciliation tables available in appendix Progressive Leasing Q4 Segment Results
Slide 11: PROG Holdings Full-Year 2023 Outlook
11 This outlook assumes a difficult operating environment with continued soft demand for consumer durable goods, no material changes in the Company's decisioning posture, and no impact from additional share repurchases. PROG Holdings Full-Year 2023 Outlook
Slide 12: PROG Holdings Q1 2023 Outlook
12 PROG Holdings Q1 2023 Outlook This outlook assumes a difficult operating environment with continued soft demand for consumer durable goods, no material changes in the Company's decisioning posture, and no impact from additional share repurchases.
Slide 13: PROG Holdings, Inc.
(p PROG Holdings, Inc.
Slide 14: Non-GAAP measures definitions
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 non-GAAP diluted earnings per shar
Slide 15: Reconciliation of Net Earnings and EPS to Non-GAAP
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: Reconciliation of Net Earnings and EPS to Non-GAAP
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: Quarterly Segment EBITDA
GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Quarterly Segment EBITDA (In thousands)
Slide 18: Quarterly Segment EBITDA
GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Quarterly Segment EBITDA (In thousands)
Slide 19: Quarterly Segment EBITDA
GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Quarterly Segment EBITDA (In thousands)
Slide 20: Annual Segment EBITDA
GAAP to non-GAAP Reconciliation Tables Non-GAAP Financial Information Annual Segment EBITDA (In thousands)
Slide 21: Non-GAAP Financial Information Adjusted EBITDA %
GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Adjusted EBITDA %
Slide 22: Reconciliation of Full Year 2023 Outlook for Adjusted EBITDA
GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Reconciliation of Full Year 2023 Outlook for Adjusted EBITDA (In thousands)
Slide 23: Reconciliation of Q1 2023 Outlook for Adjusted EBITDA
GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Reconciliation of the Three Months Ended March 31, 2023 Outlook for Adjusted EBITDA (In thousands)
Slide 24: Reconciliation of Full Year 2023 Outlook for EPS
GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Reconciliation of Full Year 2023 Outlook for Earnings Per Share Assuming Dilution to Non-GAAP Earnings Per Share Assuming Dilution
Slide 25: Reconciliation of Q1 2023 Outlook for EPS
GAAP to non-GAAP Reconciliation Tables PROG Holdings, Inc. Non-GAAP Financial Information Reconciliation of the Three Months Ended March 31, 2023 Outlook for Earnings Per Share Assuming Dilution to Non-GAAP Earnings Per Share Assuming Dilution
Slide 26: PROG Internal
PROG Internal