Slide 1: Second Quarter Earnings Review
Second Quarter Earnings upbound Review August 3, 2023
Slide 2: Disclosures
Disclosures upbound
Slide 3: Q2 Consolidated Highlights
Q2 Consolidated Highlights upbound on and ind continu o be a headwind as consurr rs remain nan un macro environment ecially in furniture category due Solutions to o traditional fi ‘tend its solutions
Slide 4: Q2 Business Segment Highlights
Q2 Business Segment Highlights upbound . a if 4.7' i e y/y due to volumes at wit eliveries partial fewe merchant partner retail locations, improved sequentially * age t t from -12.6% in Q1 dise sales revenue due to a ind fewer custom: e * Skip / Stolen Lo: 270 nun y/y due to imp ount management ¢ *
Slide 5: 2023 Priorities
2023 Priorities upbound upbound Expand Offerings and Financial Access A tc Optimize Offerings Grow Customers ert : t Increase Customer Lifetime Value Improve Operational Efficiency In e acima Leasing Grow Retailer Base Increase Lifetime Value Improve Profitability
Slide 6: Q2 2023 Consolidated Financial Highlights
Q2 2023 Consolidated Financial Highlights upbound Q2 2023 % of Total Revenue '#039;s millions, except percentages and EPS 100.0% Adj EBITDA’ Margin Adjusted EBITDA’ $130.6 13.3% Non-GAAP Diluted EPS' sn Free Cash Flow! $24.7
Slide 7: Rent-A-Center Q2 Highlights
Rent-A-Center Q2 Highlights upbound Rent-A-Center Qtr. End Portfolio Value ($M)? Financial Results $1393 $130.6 a2 2020 @2 2023 Rent-A-Center Past Due Rates”? Trend Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun mm “nm a a eres) Ch eee CUT) ee
Slide 8: Acima Q2 Highlights
Acima Q2 Highlights upbound a Loss Rate & First Payment Miss Rate Trend 2 as21ae2tar22ay22 322 as22 as ar23 2 FP emcmmloss Rate Acima Past Due Rates? Trend 9% 14.1% gt 14.3% 4.9% 4 13.9% 14.1% 5% 13.4% % 12.4% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 22 ‘22 ‘22 ‘22 ‘22 "22 '22 ‘22
Slide 9: Full Year 2023 Guidance
Full Year 2023 Guidance upbound Revised outlook increases Adjusted EBITDA, Non-GAAP Diluted EPS and free cash flow Third Quarter Revised Full Year Previous Full Year 2023 Guidance 2023 Guidance 2023 Guidance (8/3/23) (8/3/23) (8/4/23) Consolidated’ Low High Low High Low High Revenues ($bn) $0.95 $0.
Slide 10: Financial Position & Capital Allocation
Financial Position & Capital Allocation upbound (#039;s millions) Q2 2023 Liquidity $564.4 Cash (unrestricted) $77.0 Revolving Credit Availability $4874 Total Debt $1,265.0 Leverage Ratio (LTM) 2.5x Interest Coverage Ratio (LTM) 3.8x Dividend Payout Ratio (LTM) 36.2%
Slide 11: Key Takeaways
Key Takeaways Topline trends in line with expectations; Adj. EBITDA and Adj. EPS above expectations on better Acima margins Fewer customers elected earlier payout options, which increased gross profit Disciplined underwriting approach resulted in improvement n overall risk metrics, especially at Ren
Slide 12: Upbound Report
upbound Repent
Slide 13: Reconciliation of Net (Loss) Earnings to Net Earnings Excluding Special Items
Reconciliation of Net (Loss) Earnings to Net Earnings Excluding Special Items and Non-GAAP Diluted Earnings Per Share upbound Three Months Ended June 30, 2023 Earnings Diluted Operating Before Net(Loss) Earnings per (In thousands) Gross Profit Profit Income Tax TaxExpense Earnings Share GAAP Results
Slide 14: Reconciliation of Net (Loss) Earnings to Net Earnings Excluding Special Items
Reconciliation of Net (Loss) Earnings to Net Earnings Excluding upbound Special Items and Non-GAAP Diluted Earnings Per Share Three Months Ended June 30, 2022 Earnings Diluted Operating Before Earnings per (In thousands) Gross Profit Profit Income Tax Tax Expense Net Earnings Share GAAP Results $ 53
Slide 15: Reconciliation of Operating Profit (Loss) to Adjusted EBITDA
Reconciliation of Operating Profit (Loss) to Adjusted upbound EBITDA (Consolidated and by Segment) Three Months Ended June 30, 2023 (In thousands) Rent-A-Center Acima Mexico Franchising Corporate Consolidated GAAP Operating Profit $ 78,914 $ 63,109 $ 1,298 $ 4,979 $ (64,269) $ 84,031 Plus: Amortizat
Slide 16: Reconciliation of Operating Profit (Loss) to Adjusted EBITDA
Reconciliation of Operating Profit (Loss) to Adjusted upbound EBITDA (Consolidated and by Segment) Three Months Ended June 30, 2022 (In thousands) Rent-A-Center Acima Mexico Franchising Corporate Consolidated GAAP Operating Profit $ 99,108 $ 35,835 $ 1,949 $ 5,303 $ (84,114) $ 58,081 Plus: Amortizat
Slide 17: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
Reconciliation of Net Cash Provided by Operating upbound Activities to Free Cash Flow Three Months Ended June 30, | Six Months Ended June 30, (In thousands) 2023 2022 2023 2022 Net cash provided by operating activities $ 36,543 $ 81,830 $ 141,960 $ 287,121 Purchase of property assets (11,860) (14,49
Slide 18: Supplemental Segment Performance Details - GAAP
Supplemental Segment Performance Details - GAAP upbound Revenue Merchandise sales Franchise and royalty tees Cost of Sates Cost of franchise merchandise sold Operating Expenses Other store expenses Depreciation, amortization and write own of intangibles Total operating expenses Capital expenditures
Slide 19: Supplemental Segment Performance Details - Non-GAAP
Supplemental Segment Performance Details - Non-GAAP upbound Other store revenue handising sale Franchise and royalty fees Cost of merchandise sd Cost of franchise merchandise sold Operating Expenses Other store expenses Depreciation, amortization and write down of intangibles ting supneees Capital e