• Progressive Leasing GMV of $494.0 million, down 2.4% year-over-year
  • E-commerce 15.6% of Progressive Leasing GMV, up 17.6% year-over-year
  • Consolidated revenues of $649.4 million, down 1.6% year-over-year
  • Consolidated earnings before taxes of $27.3 million; Adjusted EBITDA of $52.2 million or 8.0% of revenues
  • Diluted EPS of $0.37; Non-GAAP Diluted EPS of $0.52

PROG Holdings, Inc. (NYSE:PRG), the fintech holding company for Progressive Leasing, Vive Financial, and Four Technologies, today announced financial results for the second quarter ended June 30, 2022.

“In the face of significant macro-economic challenges, our team is highly focused and continues to drive the business forward as we look to increase our share of the largely unserved addressable market,” said PROG Holdings President and CEO Steve Michaels. “This week, we launched as the exclusive lease-to-own provider for Samsung.com, a relationship that we expect to provide meaningful GMV in 2023 and beyond. As we stated a few weeks ago, we’ve also taken aggressive steps to align the cost structure of the business with our near-term revenue outlook, which we expect will benefit us in the periods ahead. Finally, we are actively managing our lease portfolio performance towards targeted ranges by continuing to optimize our decisioning algorithms to address the impact of inflationary pressures being felt by our customers.”

“Moving forward, we believe our businesses are well-positioned to help both consumers and retailers during challenging economic periods like the one we’re currently facing. We have a resilient business model that generates strong free cash flow in a variety of economic conditions, and I am optimistic about our ability to grow market share over the long-term,” Mr. Michaels said.

Consolidated Results

Consolidated revenues for the second quarter of 2022 were $649.4 million, a decrease of 1.6% from the same period in 2021. The Company's revenue benefited from further penetration with large national partners and continued growth in e-commerce, but those benefits were more than offset by the impact of tighter lease decisioning and sluggish retail traffic.

The Company reported consolidated net earnings for the second quarter of 2022 of $19.5 million compared with $68.8 million in the prior year period. Adjusted EBITDA for the second quarter of 2022 was $52.2 million compared with $104.9 million for the same period in 2021. As a percentage of revenues, adjusted EBITDA was 8.0% in the second quarter of 2022, compared with 15.9% for the same period in 2021.

The year-over-year declines in adjusted EBITDA and net earnings in the quarter were primarily driven by pressures on portfolio performance, which resulted in lower revenue and higher write-offs.

Diluted earnings per share for the second quarter of 2022 were $0.37 compared with $1.02 in the year ago period. On a non-GAAP basis, diluted earnings per share were $0.52 in the second quarter of 2022 compared with $1.09 for the same quarter in 2021.

Progressive Leasing Results

Progressive Leasing's second quarter GMV decreased 2.4% to $494.0 million compared with the same period in 2021, primarily due to further tightening of lease decisioning and decreased in-store and online traffic for our retail partners. E-commerce GMV within the segment increased 17.6% year-over-year, accounting for 15.6% of the segment's total GMV in the second quarter of 2022. The provision for lease merchandise write-offs was 9.8% of lease revenues in the second quarter of 2022, as continuing increases in delinquencies drove an increase in the Company's write-off reserves.

Liquidity and Capital Allocation

PROG Holdings ended the second quarter of 2022 with cash of $127.3 million and gross debt of $600 million. The Company repurchased $98.4 million of its stock in the quarter at an average price of $25.23 per share and has $384.4 million remaining under its previously-announced $1 billion share repurchase program.

2022 Outlook

The Company is reiterating its revised full year 2022 consolidated outlook as presented in its press release issued on June 16, 2022.

Conference Call and Webcast

The company has scheduled a live webcast and conference call for Wednesday, July 27, 2022, at 8:30 A.M. ET to discuss its financial results for the second quarter of 2022. To access the live webcast, visit the Events and Presentations page of the company’s investor relations website, https://investor.progholdings.com/. To join the conference call via telephone, dial (833) 756-0860 and request to join the PROG Holdings, Inc. call. International participants without internet access can join the conference call by dialing (412) 317-6759 and requesting to join the PROG Holdings, Inc. call.

About PROG Holdings, Inc.

PROG Holdings, Inc. (NYSE:PRG) is a fintech holding company headquartered in Salt Lake City, UT, that provides transparent and competitive payment options to consumers. The Company owns Progressive Leasing, a leading provider of e-commerce, app-based, and in-store point-of-sale lease-to-own solutions, Vive Financial, an omnichannel provider of second-look revolving credit products, and Four Technologies, a provider of Buy Now, Pay Later payment options through its platform, Four. More information on PROG Holdings' companies can be found at https://www.progholdings.com.

Forward Looking Statements:

Statements in this news release 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 statements. Such forward-looking statements generally can be identified by the use of forward-looking terminology, such as “believe”, “look to”, “expect”, “continue”, “outlook” and similar forward-looking terminology. These risks and uncertainties include factors such as (i) continued volatility and challenges in the macro environment and, in particular, the unfavorable effects on our business of the rapid increase in the rate of inflation currently being experienced in the economy, which has not been seen in more than forty years, and its impact on: (a) consumer confidence and customer demand for the merchandise that our POS partners sell; (b) our customers’ disposable income and their ability to make the lease and loan payments they owe the company; (c) the availability of consumer credit; (d) our labor costs; and (e) our overall financial performance and outlook; (ii) a further deterioration of the macro environment and/or additional macro-economic headwinds; (iii) the impact of the COVID-19 pandemic, including new variants, subvariants or additional waves of COVID-19 infections, on: (a) demand for the lease-to-own products offered by our Progressive Leasing segment, (b) Progressive Leasing’s point-of-sale or “POS” partners, and Vive’s and Four’s merchant partners, (c) Progressive Leasing’s, Vive’s and Four’s customers, including their ability and willingness to satisfy their obligations under their lease agreements and loan agreements, (d) Progressive Leasing’s POS partners being able to obtain the merchandise their customers need or desire, (e) our employees and labor needs, including our ability to adequately staff our operations, (f) our financial and operational performance, and (g) our liquidity; (iv) changes in the enforcement of existing laws and regulations and the adoption of new laws and regulations that may unfavorably impact our businesses; (v) increased focus by federal and state regulators on businesses that serve subprime consumers, such as our Progressive Leasing, Vive Financial and Four Technologies businesses, and other types of legal and regulatory proceedings and investigations, including those related to consumer protection, customer privacy, third party and employee fraud and information security; (vi) a large percentage of the Company’s revenues being concentrated with several of Progressive Leasing’s key POS partners; (vii) the risks that Progressive Leasing will be unable to attract new POS partners or retain and grow its business with its existing POS partners; (viii) the risk that our capital allocation strategy, including our current share repurchase program, will not be effective at enhancing shareholder value; (ix) Vive’s business model differing significantly from Progressive Leasing’s, which creates specific and unique risks for the Vive business, including Vive’s reliance on two bank partners to issue its credit products and Vive’s exposure to the unique regulatory risks associated with the laws and regulations that apply to its business; (x) adverse consequences to Progressive Leasing, including additional monetary penalties and/or injunctive relief, if it fails to comply with the terms of its 2020 settlement with the FTC, as well as the possibility of other regulatory authorities and third parties bringing legal actions against Progressive Leasing based on the same allegations that led to the FTC settlement; (xi) increased competition from traditional and virtual lease-to-own competitors and also from competitors of our Vive segment; (xii) our increased level of indebtedness; (xiii) our ability to protect confidential, proprietary, or sensitive information, including the personal and confidential information of our customers, which may be adversely affected by cyber-attacks, employee or other internal misconduct, computer viruses, electronic break-ins or “hacking”, or similar disruptions, any one of which could have a material adverse impact on our results of operations, financial condition, and prospects; (xiv) the effects of any increased expenses or unanticipated liabilities incurred as a result of, or due to activities related to, our acquisition of Four Technologies; (xv) Four Technology’s business model differing significantly from Progressive Leasing's and Vive’s, which creates specific and unique risks for the Four business, including Four’s exposure to the unique regulatory risks associated with the laws and regulations that apply to its business; and (xvi) the other risks and uncertainties discussed under “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, filed with the SEC on February 23, 2022. Statements in this press release that are “forward-looking” include without limitation statements about (i) our ability to increase our share of the addressable market for our offerings; (ii) the GMV we expect to generate in 2023 and beyond from our relationship with Samsung.com; (iii) the benefits we expect from aligning our cost structure with our near-term revenue outlook; (iv) our ability to manage our lease portfolio performance towards targeted ranges; (v) our ability to generate strong free cash flow in a variety of economic conditions; and (vi) our full-year 2022 outlook. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as required by law, the Company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances after the date of this press release.

PROG Holdings, Inc.

Consolidated Statements of Earnings

(In thousands, except per share data)

 

 

(Unaudited)

Three Months Ended

 

(Unaudited)

Six Months Ended

 

June 30,

 

June 30,

 

2022

 

2021

 

2022

 

2021

REVENUES:

 

 

 

 

 

 

 

Lease Revenues and Fees

$

631,344

 

 

$

646,048

 

 

$

1,324,258

 

 

$

1,354,030

 

Interest and Fees on Loans Receivable

 

18,100

 

 

 

13,923

 

 

 

35,650

 

 

 

26,942

 

 

 

649,444

 

 

 

659,971

 

 

 

1,359,908

 

 

 

1,380,972

 

 

 

 

 

 

 

 

 

COSTS AND EXPENSES:

 

 

 

 

 

 

 

Depreciation of Lease Merchandise

 

439,113

 

 

 

439,658

 

 

 

936,124

 

 

 

944,715

 

Provision for Lease Merchandise Write-offs

 

61,788

 

 

 

31,258

 

 

 

112,118

 

 

 

49,898

 

Operating Expenses

 

111,606

 

 

 

96,745

 

 

 

225,264

 

 

 

187,941

 

 

 

612,507

 

 

 

567,661

 

 

 

1,273,506

 

 

 

1,182,554

 

OPERATING PROFIT

 

36,937

 

 

 

92,310

 

 

 

86,402

 

 

 

198,418

 

Interest Expense

 

(9,608

)

 

 

(436

)

 

 

(19,237

)

 

 

(948

)

EARNINGS BEFORE INCOME TAX EXPENSE

 

27,329

 

 

 

91,874

 

 

 

67,165

 

 

 

197,470

 

INCOME TAX EXPENSE

 

7,845

 

 

 

23,037

 

 

 

20,546

 

 

 

49,145

 

NET EARNINGS

$

19,484

 

 

$

68,837

 

 

$

46,619

 

 

$

148,325

 

EARNINGS PER SHARE

 

 

 

 

 

 

 

Basic

$

0.37

 

 

$

1.03

 

 

$

0.86

 

 

$

2.20

 

Assuming Dilution

$

0.37

 

 

$

1.02

 

 

$

0.86

 

 

$

2.19

 

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE SHARES OUTSTANDING:

 

 

 

 

 

 

 

Basic

 

52,880

 

 

 

67,011

 

 

 

54,134

 

 

 

67,368

 

Assuming Dilution

 

52,961

 

 

 

67,329

 

 

 

54,326

 

 

 

67,792

 

 

PROG Holdings, Inc.

Consolidated Balance Sheets

(In thousands, except share data)

 

 

 

(Unaudited)

 

 

 

 

June 30,

2022

 

December 31,

2021

ASSETS:

 

 

 

 

Cash and Cash Equivalents

 

$

127,340

 

 

$

170,159

 

Accounts Receivable (net of allowances of $81,898 in 2022 and $71,233 in 2021)

 

 

69,671

 

 

 

66,270

 

Lease Merchandise (net of accumulated depreciation and allowances of $509,646 in 2022 and $463,929 in 2021)

 

 

615,256

 

 

 

714,055

 

Loans Receivable (net of allowances and unamortized fees of $52,749 in 2022 and $53,300 in 2021)

 

 

123,578

 

 

 

119,315

 

Property and Equipment, Net

 

 

25,429

 

 

 

25,648

 

Operating Lease Right-of-Use Assets

 

 

15,501

 

 

 

17,488

 

Goodwill

 

 

306,212

 

 

 

306,212

 

Other Intangibles, Net

 

 

125,859

 

 

 

137,305

 

Income Tax Receivable

 

 

13,199

 

 

 

14,352

 

Deferred Income Tax Assets

 

 

2,760

 

 

 

2,760

 

Prepaid Expenses and Other Assets

 

 

53,585

 

 

 

48,197

 

Total Assets

 

$

1,478,390

 

 

$

1,621,761

 

LIABILITIES & SHAREHOLDERS’ EQUITY:

 

 

 

 

Accounts Payable and Accrued Expenses

 

$

125,964

 

 

$

135,954

 

Deferred Income Tax Liability

 

 

145,569

 

 

 

146,265

 

Customer Deposits and Advance Payments

 

 

36,197

 

 

 

45,070

 

Operating Lease Liabilities

 

 

23,572

 

 

 

25,410

 

Debt

 

 

590,317

 

 

 

589,654

 

Total Liabilities

 

 

921,619

 

 

 

942,353

 

SHAREHOLDERS' EQUITY:

 

 

 

 

Common Stock, Par Value $0.50 Per Share: Authorized: 225,000,000 Shares at June 30, 2022 and December 31, 2021; Shares Issued: 82,078,654 at June 30, 2022 and December 31, 2021

 

 

41,039

 

 

 

41,039

 

Additional Paid-in Capital

 

 

332,823

 

 

 

332,244

 

Retained Earnings

 

 

1,102,145

 

 

 

1,055,526

 

 

 

 

1,476,007

 

 

 

1,428,809

 

Less: Treasury Shares at Cost

 

 

 

 

Common Stock: 31,513,117 Shares at June 30, 2022 and 25,638,057 at December 31, 2021

 

 

(919,236

)

 

 

(749,401

)

Total Shareholders’ Equity

 

 

556,771

 

 

 

679,408

 

Total Liabilities & Shareholders’ Equity

 

$

1,478,390

 

 

$

1,621,761

 

 

PROG Holdings, Inc.

Consolidated Statements of Cash Flows

(In thousands)

 

 

(Unaudited)

 

Six Months Ended June 30,

 

2022

 

2021

OPERATING ACTIVITIES:

 

 

 

Net Earnings

$

46,619

 

 

$

148,325

 

Adjustments to Reconcile Net Earnings to Cash Provided by Operating Activities:

 

 

 

Depreciation of Lease Merchandise

 

936,124

 

 

 

944,715

 

Other Depreciation and Amortization

 

17,021

 

 

 

14,247

 

Provisions for Accounts Receivable and Loan Losses

 

201,980

 

 

 

87,114

 

Stock-Based Compensation

 

9,040

 

 

 

8,137

 

Deferred Income Taxes

 

(696

)

 

 

11,001

 

Non-Cash Lease Expense

 

549

 

 

 

464

 

Other Changes, Net

 

(3,748

)

 

 

(1,180

)

Changes in Operating Assets and Liabilities, Net of Effects of Acquisitions:

 

 

 

Additions to Lease Merchandise

 

(951,751

)

 

 

(974,271

)

Book Value of Lease Merchandise Sold or Disposed

 

114,427

 

 

 

52,089

 

Accounts Receivable

 

(188,921

)

 

 

(72,070

)

Prepaid Expenses and Other Assets

 

(5,216

)

 

 

106

 

Income Tax Receivable and Payable

 

(571

)

 

 

(20

)

Operating Lease Right-of-Use Assets and Liabilities

 

(401

)

 

 

(895

)

Accounts Payable and Accrued Expenses

 

(9,841

)

 

 

23,552

 

Customer Deposits and Advance Payments

 

(8,873

)

 

 

(2,473

)

Cash Provided by Operating Activities

 

155,742

 

 

 

238,841

 

INVESTING ACTIVITIES:

 

 

 

Investments in Loans Receivable

 

(92,741

)

 

 

(94,129

)

Proceeds from Loans Receivable

 

76,244

 

 

 

62,938

 

Outflows on Purchases of Property and Equipment

 

(5,494

)

 

 

(4,781

)

Proceeds from Property and Equipment

 

17

 

 

 

45

 

Proceeds (Outflows) from Acquisitions of Businesses

 

7

 

 

 

(22,749

)

Cash Used in Investing Activities

 

(21,967

)

 

 

(58,676

)

FINANCING ACTIVITIES:

 

 

 

Acquisition of Treasury Stock

 

(176,475

)

 

 

(77,196

)

Tender Offer Shares Repurchased and Retired

 

199

 

 

 

 

Issuance of Stock Under Stock Option Plans

 

663

 

 

 

2,856

 

Shares Withheld for Tax Payments

 

(2,516

)

 

 

(4,921

)

Debt Issuance Costs

 

1,535

 

 

 

 

Cash Used in Financing Activities

 

(176,594

)

 

 

(79,261

)

(Decrease) Increase in Cash and Cash Equivalents

 

(42,819

)

 

 

100,904

 

Cash and Cash Equivalents at Beginning of Period

 

170,159

 

 

 

36,645

 

Cash and Cash Equivalents at End of Period

$

127,340

 

 

$

137,549

 

Net Cash Paid During the Period:

 

 

 

Interest

$

17,085

 

 

$

435

 

Income Taxes

$

19,475

 

 

$

23,539

 

 

PROG Holdings, Inc.

Quarterly Revenues by Segment

(In thousands)

 

 

(Unaudited)

 

Three Months Ended

 

June 30, 2022

 

Progressive Leasing

Vive

Other

Consolidated Total

Lease Revenues and Fees

$

631,344

$

$

$

631,344

Interest and Fees on Loans Receivable

 

 

 

17,518

 

 

582

 

 

18,100

 

Total Revenues

$

631,344

 

$

17,518

 

$

582

 

$

649,444

 

 

(Unaudited)

 

Three Months Ended

 

June 30, 2021

 

Progressive Leasing

Vive

Other

Consolidated Total

Lease Revenues and Fees

$

646,048

$

$

$

646,048

Interest and Fees on Loans Receivable

 

 

 

13,923

 

 

 

 

13,923

 

Total Revenues

$

646,048

 

$

13,923

 

$

 

$

659,971

 

 

PROG Holdings, Inc.

Six Months Revenues by Segment

(In thousands)

 

 

(Unaudited)

 

Six Months Ended

 

June 30, 2022

 

Progressive Leasing

Vive

Other

Consolidated Total

Lease Revenues and Fees

$

1,324,258

$

$

$

1,324,258

Interest and Fees on Loans Receivable

 

 

 

34,634

 

 

1,016

 

 

35,650

 

Total Revenues

$

1,324,258

 

$

34,634

 

$

1,016

 

$

1,359,908

 

 

(Unaudited)

 

Six Months Ended

 

June 30, 2021

 

Progressive Leasing

Vive

Other

Consolidated Total

Lease Revenues and Fees

$

1,354,030

$

$

$

1,354,030

Interest and Fees on Loans Receivable

 

 

 

26,942

 

 

 

 

26,942

 

Total Revenues

$

1,354,030

 

$

26,942

 

$

 

$

1,380,972

 

 

Use of Non-GAAP Financial Information:

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 non-GAAP diluted earnings per share for the three and six months ended June 30, 2022, exclude intangible amortization expense, restructuring expenses, and accrued interest on an uncertain tax position related to Progressive Leasing's $175.0 million settlement with the FTC in 2020. Non-GAAP net earnings and non-GAAP diluted earnings per share for the three and six months ended June 30, 2021 exclude intangible amortization expense and transaction costs associated with the acquisition of Four. The amount for the after-tax non-GAAP adjustment, which is tax effected using our statutory tax rate, can be found in the reconciliation of net earnings and earnings per share assuming dilution to non-GAAP net earnings and earnings per share assuming dilution table in this press release.

The Adjusted EBITDA figures presented in this press release are calculated as the Company’s earnings before interest expense, net, depreciation on property and equipment, amortization of intangible assets and income taxes. Adjusted EBITDA for the three and six months ended June 30, 2022 exclude stock-based compensation expense and restructuring expenses. Adjusted EBITDA for the three and six months ended June 30, 2021 exclude stock-based compensation expense and transaction costs associated with the acquisition of Four. The amounts for these pre-tax non-GAAP adjustments can be found in the three and six month segment EBITDA tables in this press release.

Management believes that non-GAAP net earnings, non-GAAP diluted earnings per share, and adjusted EBITDA provide relevant and useful information, and are widely used by analysts, investors and competitors in our industry as well as by our management in assessing both consolidated and business unit performance.

Non-GAAP net earnings, non-GAAP diluted earnings, and adjusted EBITDA provide management and investors with an understanding of the results from the primary operations of our business by excluding the effects of certain items that generally arose from larger, one-time transactions that are not reflective of the ordinary earnings activity of our operations or transactions that have variability and volatility of the amount. We believe the exclusion of stock-based compensation expense provides for a better comparison of our operating results with our peer companies as the calculations of stock-based compensation vary from period to period and company to company due to different valuation methodologies, subjective assumptions and the variety of award types. This measure may be useful to an investor in evaluating the underlying operating performance of our business.

Adjusted EBITDA also provides management and investors with an understanding of one aspect of earnings before the impact of investing and financing charges and income taxes. These measures may be useful to an investor in evaluating our operating performance because the measures:

  • Are widely used by investors to measure a company’s operating performance without regard to items excluded from the calculation of such measure, which can vary substantially from company to company depending upon accounting methods, book value of assets, capital structure and the method by which assets were acquired, among other factors.
  • Are used by rating agencies, lenders and other parties to evaluate our creditworthiness.
  • Are used by our management for various purposes, including as a measure of performance of our operating entities and as a basis for strategic planning and forecasting.

Non-GAAP financial measures, however, should not be used as a substitute for, or considered superior to, measures of financial performance prepared in accordance with GAAP, such as the Company’s GAAP basis net earnings and diluted earnings per share and the GAAP revenues and earnings before income taxes of the Company’s segments, which are also presented in the press release. Further, we caution investors that amounts presented in accordance with our definitions of non-GAAP net earnings, non-GAAP diluted earnings per share, and adjusted EBITDA may not be comparable to similar measures disclosed by other companies, because not all companies and analysts calculate these measures in the same manner.

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)

 

 

(Unaudited)

 

(Unaudited)

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

 

2022

 

2021

 

2022

 

2021

Net Earnings

$

19,484

 

 

$

68,837

 

 

$

46,619

 

 

$

148,325

 

Add: Intangible Amortization Expense

 

5,723

 

 

 

5,421

 

 

 

11,447

 

 

 

10,842

 

Add: Transaction Expense

 

 

 

 

561

 

 

 

 

 

 

561

 

Add: Restructuring Expense

 

4,328

 

 

 

 

 

 

4,328

 

 

 

 

Less: Tax Impact of Adjustments(1)

 

(2,613

)

 

 

(1,555

)

 

 

(4,101

)

 

 

(2,964

)

Add: Accrued Interest on FTC Settlement Uncertain Tax Position

 

647

 

 

 

 

 

 

1,186

 

 

 

 

Non-GAAP Net Earnings

$

27,569

 

 

$

73,264

 

 

$

59,479

 

 

$

156,764

 

 

 

 

 

 

 

 

 

Earnings Per Share Assuming Dilution

$

0.37

 

 

$

1.02

 

 

$

0.86

 

 

$

2.19

 

Add: Intangible Amortization Expense

 

0.11

 

 

 

0.08

 

 

 

0.21

 

 

 

0.16

 

Add: Transaction Expense

 

 

 

 

0.01

 

 

 

 

 

 

0.01

 

Add: Restructuring Expense

 

0.08

 

 

 

 

 

 

0.08

 

 

 

 

Less: Tax Impact of Adjustments(1)

 

(0.05

)

 

 

(0.02

)

 

 

(0.08

)

 

 

(0.04

)

Add: Accrued Interest on FTC Settlement Uncertain Tax Position

 

0.01

 

 

 

 

 

 

0.02

 

 

 

 

Non-GAAP Earnings Per Share Assuming Dilution(2)

$

0.52

 

 

$

1.09

 

 

$

1.09

 

 

$

2.31

 

Weighted Average Shares Outstanding Assuming Dilution

 

52,961

 

 

 

67,329

 

 

 

54,326

 

 

 

67,792

 

(1)

 

Adjustments are tax-effected using an assumed statutory tax rate of 26%.

(2)

 

In some cases, the sum of individual EPS amounts may not equal total non-GAAP EPS calculations due to rounding.

 

PROG Holdings, Inc.

Non-GAAP Financial Information

Quarterly Segment EBITDA

(In thousands)

 

 

(Unaudited)

 

Three Months Ended

 

June 30, 2022

 

Progressive Leasing

 

Vive

 

Other

 

Consolidated Total

Net Earnings

 

 

 

 

 

 

$

19,484

 

Income Taxes(1)

 

 

 

 

 

 

 

7,845

 

Earnings (Loss) Before Income Taxes

$

27,383

 

$

3,355

 

$

(3,409

)

 

 

27,329

Interest Expense

 

9,525

 

 

 

83

 

 

 

 

 

 

9,608

 

Depreciation

 

2,524

 

 

 

195

 

 

 

97

 

 

 

2,816

 

Amortization

 

5,421

 

 

 

 

 

 

302

 

 

 

5,723

 

EBITDA

 

44,853

 

 

 

3,633

 

 

 

(3,010

)

 

 

45,476

 

Stock-Based Compensation

 

2,643

 

 

 

99

 

 

 

(325

)

 

 

2,417

 

Restructuring Expense

 

3,673

 

 

 

655

 

 

 

 

 

 

4,328

 

Adjusted EBITDA

$

51,169

 

 

$

4,387

 

 

$

(3,335

)

 

$

52,221

 

(1)

 

Taxes are calculated on a consolidated basis and are not identifiable by Company Segment.

 

(Unaudited)

 

Three Months Ended

 

June 30, 2021

 

Progressive Leasing

 

Vive

 

Other

 

Consolidated Total

Net Earnings

 

 

 

 

 

 

$

68,837

 

Income Taxes(1)

 

 

 

 

 

 

 

23,037

 

Earnings Before Income Taxes

$

87,521

 

$

4,353

 

$

 

 

91,874

Interest Expense

 

320

 

 

 

116

 

 

 

 

 

 

436

 

Depreciation

 

2,414

 

 

 

198

 

 

 

 

 

 

2,612

 

Amortization

 

5,421

 

 

 

 

 

 

 

 

 

5,421

 

EBITDA

 

95,676

 

 

 

4,667

 

 

 

 

 

 

100,343

 

Stock-Based Compensation

 

3,942

 

 

 

31

 

 

 

 

 

 

3,973

 

Transaction Expense

 

561

 

 

 

 

 

 

 

 

 

561

 

Adjusted EBITDA

$

100,179

 

 

$

4,698

 

 

$

 

 

$

104,877

 

(1)

 

Taxes are calculated on a consolidated basis and are not identifiable by Company Segment.

 

PROG Holdings, Inc.

Non-GAAP Financial Information

Six Month Segment EBITDA

(In thousands)

 

 

(Unaudited)

 

Six Months Ended

 

June 30, 2022

 

Progressive Leasing

 

Vive

 

Other

 

Consolidated Total

Net Earnings

 

 

 

 

 

 

$

46,619

 

Income Taxes(1)

 

 

 

 

 

 

 

20,546

 

Earnings (Loss) Before Income Taxes

$

69,464

 

$

7,778

 

$

(10,077

)

 

 

67,165

Interest Expense

 

19,048

 

 

 

189

 

 

 

 

 

 

19,237

 

Depreciation

 

5,053

 

 

 

392

 

 

 

129

 

 

 

5,574

 

Amortization

 

10,842

 

 

 

 

 

 

605

 

 

 

11,447

 

EBITDA

 

104,407

 

 

 

8,359

 

 

 

(9,343

)

 

 

103,423

 

Stock-Based Compensation

 

6,601

 

 

 

187

 

 

 

2,252

 

 

 

9,040

 

Restructuring Expense

 

3,673

 

 

 

655

 

 

 

 

 

 

4,328

 

Adjusted EBITDA

$

114,681

 

 

$

9,201

 

 

$

(7,091

)

 

$

116,791

 

(1)

 

Taxes are calculated on a consolidated basis and are not identifiable by Company Segment.

 

 

(Unaudited)

 

Six Months Ended

 

June 30, 2021

 

Progressive Leasing

 

Vive

 

Other

 

Consolidated Total

Net Earnings

 

 

 

 

 

 

$

148,325

 

Income Taxes(1)

 

 

 

 

 

 

 

49,145

 

Earnings Before Income Taxes

$

191,693

 

$

5,777

 

$

 

 

197,470

Interest Expense

 

755

 

 

 

193

 

 

 

 

 

 

948

 

Depreciation

 

4,626

 

 

 

385

 

 

 

 

 

 

5,011

 

Amortization

 

10,842

 

 

 

 

 

 

 

 

 

10,842

 

EBITDA

 

207,916

 

 

 

6,355

 

 

 

 

 

 

214,271

 

Stock-Based Compensation

 

8,005

 

 

 

131

 

 

 

 

 

 

8,136

 

Transaction Expense

 

561

 

 

 

 

 

 

 

 

 

561

 

Adjusted EBITDA

$

216,482

 

 

$

6,486

 

 

$

 

 

$

222,968

 

(1)

 

Taxes are calculated on a consolidated basis and are not identifiable by Company Segment.

 

PROG Holdings, Inc.

Gross Merchandise Volume by Quarter

(In thousands)

 

 

(Unaudited)

 

Three Months Ended June 30,

 

2022

 

2021

Progressive Leasing

$

494,003

 

$

505,971

Vive

 

47,003

 

 

 

51,701

 

Other

 

11,394

 

 

 

 

Total

$

552,400

 

 

$

557,672

 

 

Investor Contact John Baugh, CFA Vice President, Investor Relations john.baugh@progleasing.com

Media Contact Mark Delcorps Director, Corporate Communications media@progholdings.com

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