Prog Holdings, Inc. · NYSE:PRG
Prog — Q2 2023 Earnings Presentation
28 slides from Prog's earnings presentation, Jul 26, 2023
Slide 1: PROG Holdings, Inc. Q2 2023 Earnings Supplement
PROG Holdings, Inc. Q2 2023 Earnings Supplement July 26, 2023
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 2023 Headlines
PROG Holdings Q2 2023 Headlines • Exceeded Q2 2023 expectations, raises consolidated earnings outlook for full-year 2023 • Consolidated revenues of $592.8 million • Earnings before taxes of $52.0 million • Adjusted EBITDA of $75.0 million, increase of 43.7% year-over-year • Diluted EPS of $0.79; Non
Slide 4: PROG Holdings Executive Commentary
PROG Holdings Executive Commentary “Our second quarter results exceeded our expectations, driven by strong portfolio performance and disciplined SG&A management. “The stability of our lease portfolio and continuing favorable trends despite soft consumer demand in key leasable categories gives us the
Slide 5: PROG Holdings Q2 Consolidated Results
PROG Holdings Q2 Consolidated Results Revenue Non-GAAP EPS • Year-over-year revenue headwinds in millions were caused primarily by Q2 2022 $1.11 $649.4 $625.8 $655.1 decisioning tightening, slow $612.1 $592.8 $0.92 customer demand for leasable $0.84 $0.68 goods, and continued year-over- $0.52 year d
Slide 6: Progressive Leasing Q2 Segment Results
Progressive Leasing Q2 Segment Results GMV Revenue • Year-over-year GMV decline was due in millions in millions to previous decisioning tightening and continued soft retail traffic in key $631.3 $637.1 $606.6 $592.9 leasable categories. $574.8 $540.9 $494.0 $437.4 $418.7 $421.2 • Revenue decline was
Slide 7: Results
PROG Holdings, Inc.
Slide 8: PROG Holdings Consolidated Q2 Results
PROG Holdings Consolidated Q2 Results Three Months Ended June 30 Change 2023 2022 Revenue $592.8 $649.4 -8.7% GAAP Net Earnings $37.2 $19.5 90.8% Adjusted Net Earnings $43.1 $27.6 56.2% Adjusted EBITDA $ $75.0 $52.2 43.7% Adjusted EBITDA % 12.7% 8.0% 470bps GAAP Diluted Earnings Per Share $0.79 $0.3
Slide 9: PROG Holdings Consolidated Results
PROG Holdings Consolidated Results Cash Flow Common Stock Common Stock From Operations Repurchased Repurchase Amount As of 6/30/2023 Q2 2023 Q2 2023 $205.4M 1.1M shares $35.4M Cash and Cash Gross Net Leverage Equivalents Debt Ratio* As of 6/30/2023 As of 6/30/2023 As of 6/30/2023 $252.8M $600M 1.14x
Slide 10: Progressive Leasing Q2 Segment Results
Progressive Leasing Q2 Segment Results Three Months Ended June 30 Change 2023 2022 GMV $421.2 $494.0 -14.7% Revenue $574.8 $631.3 -8.9% Gross Margin % 33.0% 30.4% 260bps SG&A % 13.6% 13.0% 60bps Write-Off %* 7.1% 9.8% -270bps Adjusted EBITDA $ $75.6 $51.2 47.7% Adjusted EBITDA % 13.2% 8.1% 510bps *T
Slide 11: PROG Holdings Full-Year 2023 Outlook
PROG Holdings Full-Year 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 or portfolio performance, and no impact from additional share purchases. 11
Slide 12: PROG Holdings Q3 2023 Outlook
PROG Holdings Q3 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 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 Non-GAAP Financial Information Annual Segment EBITDA (In thousands)
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 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 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 2023 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 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 the Three Months Ended September 30, 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 Revised Full Year 2023 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 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 the Three Months Ended September 30, 2023 Outlook for Earnings Per Share Assuming Dilution to Non-GAAP Earnings Per Share Assuming Dilution
Slide 28: Slide 28