Slide 1: Third Quarter Earnings Review
™ Third Quarter Earnings Review November 2, 2023
Slide 2: Disclosures
Disclosures Forward-Looking Statements This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, statements regarding our goals, plans and projections with respect to our operations, financial position
Slide 3: Q3 Consolidated Highlights
Q3 Consolidated Highlights Q3 Financial Results Q3 Trends & Developments • Consolidated revenues of $979.1 million, -4.4% y/y • External conditions remained challenging with ongoing pressure on consumer discretionary spending and soft demand in • Operating profit of $58.1 million, +56.6% y/y traditi
Slide 4: Q3 Business Segment Highlights
Q3 Business Segment Highlights Rent-A-Center Acima • Portfolio year-over-year trends improved sequentially, consistent • GMV3 and year-over-year trends improved and are anticipated with the Company’s Q3 and full year 2023 outlook to return to growth in Q4 • Q3 2023 ending lease portfolio value1 of $
Slide 5: 2023 Priorities
2023 Priorities Invest in Our Platform Grow Retailer Base Improve our core business, while Grow Customers Enhance our network of retailers creating a foundation for sustained Convert more customers & attract and create innovative ways to shop future growth new prospects Expand Offerings and Increase
Slide 6: Q3 2023 Consolidated Financial Highlights
Q3 2023 Consolidated Financial Highlights Q3 2023 Financial Results Q3 2023 $’s millions, except percentages and EPS Actual % of Total Revenue • Revenue: $979.1 million, -4.4% y/y Rent-A-Center 453.6 46.3% Acima 475.2 48.5% • Operating profit of $58.1 million, +56.6% y/y Franchising 30.6 3.1% 1 • Ad
Slide 7: Rent-A-Center Q3 Highlights
Rent-A-Center Q3 Highlights Financial Results Rent-A-Center Qtr. End Portfolio Value / Stores ($000’s)3 • Revenue of $453.6 million, -4.2% y/y due to a lower lease portfolio value and fewer customers electing early payouts. Same store sales were down 4.0%, which improved 90 bps from Q2 2023 • E-comm
Slide 8: Acima Q3 Highlights
Acima Q3 Highlights Acima Loss Rate & First Payment Miss Rate Trend Financial Results • GMV -1.4% y/y, improved sequentially from -5.8% in Q2 2023 led by sequential and year-over-year growth in application volume • Q3 revenues of $475.2 million, -5.8% y/y, due to a lower portfolio value that yielded
Slide 9: Full Year 2023 Guidance
Full Year 2023 Guidance Revised outlook increases midpoint for Revenue, Adjusted EBITDA, Non-GAAP Diluted EPS Table 1 Current Previous Guidance - Full Year 2023 (11/2/23) (8/3/23) Consolidated1 Revenues ($B) $3.95 - $4.00 $3.90 - $ 4.00 Adj. EBITDA Excluding SBC ($M)2 $450 - $460 $440 - $465 Non-GAA
Slide 10: Financial Position & Capital Allocation
Financial Position & Capital Allocation Capital Allocation Balance Sheet & Liquidity • Quarterly dividend of $0.34 per share or $1.36 annualized, translates to a dividend yield of 4.5% - 5.5% based on recent share price trading range ($’s millions) Q3 2023 Liquidity $581.4 • Focused on reaching long
Slide 11: Key Takeaways
Key Takeaways Strong Q3 Macro-economic environment remains uncertain • Q3 results for revenues, Adjusted EBITDA, and Non-GAAP EPS • (-) Price levels remain high, (-) Discretionary income, (-) were all in the higher end of our Q3 guidance ranges Geopolitical volatility, (+) Strong employment • Acima
Slide 12: Appendix
upb ound Appendix
Slide 13: Reconciliation of Net Earnings to Net Earnings Excluding Special Items and Non-GAAP Diluted EPS
Reconciliation of Net Earnings to Net Earnings Excluding Special Items and Non-GAAP Diluted Earnings Per Share Three Months Ended September 30, 2023 Earnings Diluted Operating Before Earnings per (In thousands) Gross Profit Profit Income Tax Tax Expense Net Earnings Share GAAP Results $ 497,166 $ 58
Slide 14: Reconciliation of Net (Loss) Earnings to Net Earnings Excluding Special Items and Non-GAAP Diluted EPS
Reconciliation of Net (Loss) Earnings to Net Earnings Excluding Special Items and Non-GAAP Diluted Earnings Per Share Three Months Ended September 30, 2022 Earnings Diluted Operating Before Income Net (Loss) Earnings per (In thousands) Gross Profit Profit Tax Tax Expense Earnings Share GAAP Results
Slide 15: Reconciliation of Operating Profit (Loss) to Adjusted EBITDA (Consolidated and by Segment)
Reconciliation of Operating Profit (Loss) to Adjusted EBITDA (Consolidated and by Segment) Three Months Ended September 30, 2023 (In thousands) Rent-A-Center Acima Mexico Franchising Corporate Consolidated GAAP Operating Profit (Loss) $ 63,762 $ 58,124 $ 1,124 $ 3,541 $ (68,499) $ 58,052 Plus: Amort
Slide 16: Reconciliation of Operating Profit (Loss) to Adjusted EBITDA (Consolidated and by Segment)
Reconciliation of Operating Profit (Loss) to Adjusted EBITDA (Consolidated and by Segment) Three Months Ended September 30, 2022 (In thousands) Rent-A-Center Acima Mexico Franchising Corporate Consolidated GAAP Operating Profit (Loss) $ 71,999 $ 48,885 $ 996 $ 5,077 $ (89,880) $ 37,077 Plus: Amortiz
Slide 17: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2023 2022 2023 2022 Net cash provided by operating activities $ 77,982 $ 124,962 $ 219,942 $ 412,083 Purchase of property assets (14,773) (18,
Slide 18: Supplemental Segment Performance Details – GAAP
Supplemental Segment Performance Details – GAAP Three Months Ended September 30, 2022 Three Months Ended September 30, 2023 Rent-A- Rent-A- (in millions) Center Acima Mexico Franchise Corporate Consolidated (in millions) Center Acima Mexico Franchise Corporate Consolidated Revenue Revenue Rentals an
Slide 19: Supplemental Segment Performance Details – Including Non-GAAP Adjustments
Supplemental Segment Performance Details – Including Non-GAAP Adjustments Three Months Ended September 30, 2022 Three Months Ended September 30, 2023 Rent-A- Rent-A- (in millions) Center Acima Mexico Franchise Corporate Consolidated (in millions) Center Acima Mexico Franchise Corporate Consolidated