Slide 1: Third Quarter Earnings Review
™ Third Quarter Earnings Review October 31, 2024
Slide 2: Disclosures
Disclosures Forward-Looking Statements This communication contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including, among others, statements regarding our goals, plans and projections with respect to our operations, financial posi
Slide 3: Q3 Consolidated Highlights
Q3 Consolidated Highlights $1,068.9 million $30.9 million $0.55 Consolidated Revenue Net Income GAAP Diluted EPS +9.2% y/y +$26.5 million y/y +$0.47 y/y 7.4% $116.9 million $0.95 Lease Charge-Off Rate1 Adjusted EBITDA2 Non-GAAP Diluted EPS2 +40 bps y/y +10.3% y/y +$0.16 y/y • Acima GMV3 growth (+13%
Slide 4: Q3 Business Segment Highlights
Q3 Business Segment Highlights Acima Rent-A-Center • GMV increased over 13% y/y in Q3, the fourth consecutive • Second consecutive quarter of y/y revenue growth quarter of double-digit GMV growth • Q3 2024 +1.1% y/y vs. +1.9% y/y in Q2 2024 • Revenues +19.1% y/y, consistent with the 19.0% y/y increa
Slide 5: 2024 Strategic Priorities
2024 Strategic Priorities Optimize Digital Customer Operational Synergies Grow Market Share Improve business efficiency through Expand our retailer relationships and Experience Deliver digital solutions that improve optimization of processes, talent, direct to consumer solutions and technology acros
Slide 6: Q3 2024 Consolidated Financial Highlights
Q3 2024 Consolidated Financial Highlights Q3 2024 Financial Results Q3 2024 $’s millions Actual % of Total Revenue • Revenue: $1,068.9 million, +9.2% y/y Acima $566.2 53.0% Rent-A-Center $458.7 42.9% • Operating profit: $70.1 million, +$12.0 million y/y Mexico $19.0 1.8% • Net earnings: $30.9 millio
Slide 7: Acima Q3 Highlights
Acima Q3 Highlights Acima GMV Trend ($M) Financial Results • GMV increased 13.0% y/y in Q3 2024, led by y/y growth in application volume resulting from expanding retailer network and existing retailer penetration • Q3 revenues of $566.2 million, +19.1% y/y, driven by an 17.9% y/y increase in rentals
Slide 8: Rent-A-Center Q3 Highlights
Rent-A-Center Q3 Highlights Financial Results Rent-A-Center Portfolio3,4 ($M) and Same Store Sales Trends • Revenue of $458.7 million, +1.1% y/y driven primarily by a 1.0% y/y increase in rentals and fees revenue, partially offset by a 0.4% y/y decrease in merchandise sales • Same store sales increa
Slide 9: Full Year 2024 Guidance
Full Year 2024 Guidance Strong Q3 performance positions Company to achieve FY 2024 guidance targets Current Full Year 2024 Guidance Previous Full Year 2024 Guidance (10/31/2024) (8/1/2024) Consolidated Guidance1 Revenues ($B) $4.20 - $4.30 $4.10 - $4.30 Adj. EBITDA Excluding SBC ($M)2 $470 - $480 $4
Slide 10: Capital Allocation & Financial Position
Capital Allocation & Financial Position Capital Allocation Balance Sheet & Liquidity • Distributed quarterly dividend of $0.37 per share, or $1.48 annualized ($’s millions) As of 09/30/24 • Focused on reaching long-term target leverage ratio of Liquidity $569.6 1.5x from a combination of Adjusted EB
Slide 11: Key Takeaways
Key Takeaways DRAFT Strong Q3 results Risk management & disciplined underwriting • Y/Y revenue growth at both Acima and RAC • Acima lease charge-offs (LCO) improved 20 bps y/y and 40 bps sequentially • Four consecutive quarters of double digit GMV growth at Acima • Targeted refinement at RAC and Aci
Slide 12: Appendix
upb ound Appendix
Slide 13: Reconciliation of Net Earnings to Non-GAAP Diluted EPS (2024)
Reconciliation of Net Earnings to Net Earnings Excluding Special Items and Non-GAAP Diluted Earnings Per Share Three Months Ended September 30, 2024 Earnings Diluted Operating Before Earnings per (In thousands) Gross Profit Profit Income Tax Tax Expense Net Earnings Share GAAP Results $ 511,086 $ 70
Slide 14: Reconciliation of Net Earnings to Non-GAAP Diluted EPS (2023)
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 15: Reconciliation of Net Earnings to Adjusted EBITDA (2024)
Reconciliation of Net Earnings (Loss) to Adjusted EBITDA (Consolidated and by Segment) Three Months Ended September 30, 2024 (in thousands) Acima Rent-A-Center Mexico Franchising Corporate Consolidated Net earnings (loss) $ 63,994 $ 68,923 $ 884 $ 4,344 $ (107,285) $ 30,860 Plus: Interest expense, n
Slide 16: Reconciliation of Net Earnings to Adjusted EBITDA (2023)
Reconciliation of Net Earnings (Loss) to Adjusted EBITDA (Consolidated and by Segment) Three Months Ended September 30, 2023 (in thousands) Acima Rent-A-Center Mexico Franchising Corporate Consolidated Net earnings (loss) $ 58,124 $ 63,762 $ 1,124 $ 3,541 $ (122,188) $ 4,363 Plus: Interest expense,
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) 2024 2023 2024 2023 Net cash provided by operating activities $ 106,205 $ 77,982 $ 166,666 $ 219,942 Purchase of property assets (17,948) (14,
Slide 18: Supplemental Segment Performance Details – GAAP
Supplemental Segment Performance Details – GAAP Three Months Ended September 30, 2024 Three Months Ended September 30, 2023 Rent-A- Rent-A- (in millions) Acima Center Mexico Franchise Corporate Consolidated (in millions) Acima Center 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, 2024 Three Months Ended September 30, 2023 Rent-A- Rent-A- (in millions) Acima Center Mexico Franchise Corporate Consolidated (in millions) Acima Center Mexico Franchise Corporate Consolidated
Slide 20: Reconciliation of Consolidated Total Leverage Ratio
Reconciliation of Consolidated Total Leverage Ratio Q3 Q2 (in millions) 2024 2024 Total Debt $ 1,254.5 $ 1,335.7 Less: Cash (unrestricted) 75.2 72.6 Net Debt 1,179.3 1,263.1 Adjusted EBITDA(1) Q3 2023 106.0 Q4 2023 107.6 107.6 Q1 2024 109.1 109.1 Q2 2024 124.5 124.5 Q3 2024 116.9 Trailing twelve mon