Prog Holdings, Inc. · NYSE:PRG
Prog — Q4 2023 Earnings Presentation
26 slides from Prog's earnings presentation, Feb 21, 2024
Slide 1: PROG Holdings Q4 2023 Earnings Supplement
PROG Holdings, Inc. Q4 2023 Earnings Supplement February 21, 2024
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 Q4 2023 Headlines
PROG Holdings Q4 2023 Headlines • Progressive Leasing GMV of $547.6 million, up 1.2% year-over-year • Board initiates quarterly cash dividend, announces $500 million share repurchase authorization • Consolidated revenues of $577.4 million • Earnings before taxes of $28.5 million • Adjusted EBITDA of
Slide 4: PROG Holdings Executive Commentary
PROG Holdings Executive Commentary “We were pleased to finish 2023 with financial results that matched or exceeded our outlook, as strong customer behavior and conversion rates during the holiday period drove a year-over-year increase in quarterly GMV, due in part to marketing and other initiatives
Slide 5: PROG Holdings Q4 Consolidated Results
PROG Holdings Q4 Consolidated Results Revenue Non-GAAP EPS in millions $1.11 $655.1 $612.1 $592.8 $582.9 $577.4 $0.92 $0.90 $0.84 $0.72 • Consolidated revenue decline was driven by a lower gross leased asset balance entering the quarter • Non-GAAP EPS continued to Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4
Slide 6: Progressive Leasing Q4 Segment Results
Progressive Leasing Q4 Segment Results GMV Revenue in millions in millions • Year-over-year GMV increase was primarily driven by better-than- $637.1 $547.6 $592.9 $574.8 $564.2 $557.5 expected consumer demand for $540.9 leasable goods during the holidays. $418.7 $421.2 $409.2 • Revenue declined year
Slide 7: Results
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Slide 8: PROG Holdings Consolidated Q4 Results
PROG Holdings Consolidated Q4 Results Three Months Ended Change December 31 2023 2022 Revenue $577.4 $612.1 -5.7% GAAP Net Earnings $18.6 $36.1 -48.5% Adjusted Net Earnings $32.4 $41.3 -21.5% Adjusted EBITDA $ $61.0 $74.4 -18.0% Adjusted EBITDA % 10.6% 12.2% -160 bps GAAP Diluted Earnings Per Share
Slide 9: PROG Holdings Consolidated Results
PROG Holdings Consolidated Results Cash Flow Shares of Common Common Stock From Operations Stock Repurchased Repurchase Amount As of 12/31/2023 Q4 2023 Q4 2023 $204.2M 1.1M $31.3M Cash and Cash Gross Net Leverage Equivalents Debt Ratio* As of 12/31/2023 As of 12/31/2023 As of 12/31/2023 $155.4M $600
Slide 10: Progressive Leasing Q4 Segment Results
Progressive Leasing Q4 Segment Results Three Months Ended Change December 31 2023 2022 GMV $547.6 $540.9 1.2% Revenue $557.5 $592.9 -6.0% Gross Margin % 32.9% 32.7% 20 bps SG&A % 15.0% 13.2% 180 bps Write-Off %* 7.0% 6.5% 50 bps Adjusted EBITDA $ $65.8 $80.4 -18.2% Adjusted EBITDA % 11.8% 13.6% -180
Slide 11: PROG Holdings Full-Year 2024 Outlook
PROG Holdings Full-Year 2024 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, an effective tax rate for non- GAAP EPS of approximately 29%, no material increases in the unem
Slide 12: PROG Holdings Q1 2024 Outlook
PROG Holdings Q1 2024 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, an effective tax rate for non- GAAP EPS of approximately 29%, no material increases in the unemploymen
Slide 13: PROG Holdings, Inc.
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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 diluted earnings
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. Non-GAAP Financial Information Quarterly Segment EBITDA (In thousands)
Slide 18: 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 19: 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 20: GAAP to non-GAAP Reconciliation Tables
GAAP to non-GAAP Reconciliation Tables Non-GAAP Financial Information Annual 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 Consolidated & Progressive Leasing 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 Full Year 2024 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 the Three Months Ended March 31, 2024 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 Full Year 2024 Outlook for Earnings Per Share Assuming Dilution to Non-GAAP Earnings Per Share Assuming Dilution
Slide 25: 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 March 31, 2024 Outlook for Earnings Per Share Assuming Dilution to Non-GAAP Earnings Per Share Assuming Dilution
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