- Consolidated revenues of $625.8 million, down 3.8%
year-over-year
- Consolidated earnings before taxes of $27.3 million;
Adjusted EBITDA of $65.0 million or 10.4% of revenues
- Diluted EPS of $0.32; Non-GAAP Diluted EPS of $0.68
- Progressive Leasing write-offs of 7.2%, down from 9.8% in Q2
2022
- E-commerce 16.5% of Progressive Leasing GMV
PROG Holdings, Inc. (NYSE:PRG), the fintech holding company for
Progressive Leasing, Vive Financial, and Four Technologies, today
announced financial results for the third quarter ended September
30, 2022.
"I am proud of our team as we continue to deliver value for our
customers and retail partners in the face of significant
macro-economic headwinds," said PROG Holdings President and CEO
Steve Michaels. “During the quarter, we saw meaningful improvement
in the quality of our leased asset portfolio as a result of changes
we made to tighten our decisioning earlier in the year, resulting
in lower write-offs compared to the second quarter of 2022. We also
drove increased efficiencies in our cost structure, as the actions
we took last quarter meaningfully improved our third quarter
results. While the retail backdrop remains challenging, we are
executing on key GMV initiatives with our retail partners that have
enabled us to partially mitigate the impacts of the current
macro-economic environment. We believe our strong balance sheet,
profitability, and free cash flow generation best position us to
take advantage of the large underserved market that remains.”
Consolidated Results
Consolidated revenues for the third quarter of 2022 were $625.8
million, a decrease of 3.8% 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 weak retail traffic
and lower approval rates.
The Company reported consolidated net earnings for the third
quarter of 2022 of $16.0 million compared with $57.4 million in the
prior year period. Adjusted EBITDA for the third quarter of 2022
was $65.0 million compared with $93.6 million for the same period
in 2021. As a percentage of revenues, adjusted EBITDA was 10.4% in
the third quarter of 2022, compared with 14.4% 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 our lease
portfolio performance this year compared with the stimulus-aided
year ago period, resulting in lower revenue and higher
write-offs.
Diluted earnings per share for the third quarter of 2022 were
$0.32 compared with $0.86 in the year ago period. On a non-GAAP
basis, diluted earnings per share were $0.68 in the third quarter
of 2022 compared with $0.94 for the same quarter in 2021. Our
weighted average share count in the third quarter was 23.7% lower
than the same quarter in 2021.
Progressive Leasing Results
Progressive Leasing's third quarter GMV decreased 11.3% to
$437.4 million compared with the same period in 2021, primarily due
to weakening traffic patterns for our retail partners, both in
store and online, as well as pressure from further tightening of
lease decisioning. E-commerce GMV within the segment increased 0.7%
year-over-year, accounting for 16.5% of the segment's total GMV in
the third quarter of 2022. The provision for lease merchandise
write-offs was 7.2% of lease revenues in the third quarter of 2022,
and while higher than the prior year's results, was down 261 basis
points from our second quarter peak.
Liquidity and Capital Allocation
PROG Holdings ended the third quarter of 2022 with cash of
$221.9 million and gross debt of $600 million. The Company
repurchased $10.9 million of its stock in the quarter at an average
price of $18.52 per share and has $373.5 million remaining under
its previously-announced $1 billion share repurchase program.
2022 Outlook
PROG Holdings has lowered its full-year 2022 financial outlook
as a result of the continued challenging operating environment.
Since the Company’s second quarter earnings call, expectations
around GMV have been adjusted as consumers deal with the impacts of
inflation. The Company also saw weaker than expected customer
payment behavior on leases originated prior to its Q2 2022 approval
tightening efforts, which is reflected in the provision for
accounts receivable.
The PROG Holdings revised fiscal year 2022 outlook is as
follows:
Revised Outlook
Previous Outlook(1)
(In thousands, except per share
amounts)
Low
High
Low
High
Total Revenues
$
2,580,000
$
2,590,000
$
2,590,000
$
2,690,000
Net Earnings
85,500
88,500
111,000
124,000
Adjusted EBITDA
235,000
240,000
255,000
275,000
Diluted EPS
1.63
1.69
2.09
2.33
Diluted Non-GAAP EPS
2.32
2.38
2.50
2.75
(1)
As announced in the Form 8-K filed on June
16, 2022.
Conference Call and Webcast
The Company has scheduled a live webcast and conference call for
Wednesday, October 26th 2022, at 8:30 A.M. ET to discuss its
financial results for the third 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/.
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 "continue", “believe”,
“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 deliver value for our customers and retail partners,
including through executing on key initiatives with those partners;
(ii) our balance sheet, profitability and free cash flow
generation; and (iii) our revised 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)
Nine Months Ended
September 30,
September 30,
2022
2021
2022
2021
REVENUES:
Lease Revenues and Fees
$
606,585
$
635,025
$
1,930,843
$
1,989,055
Interest and Fees on Loans Receivable
19,236
15,380
54,886
42,322
625,821
650,405
1,985,729
2,031,377
COSTS AND EXPENSES:
Depreciation of Lease Merchandise
422,589
435,857
1,358,713
1,380,572
Provision for Lease Merchandise
Write-offs
43,537
34,174
155,655
84,072
Operating Expenses
112,733
102,053
337,997
289,994
Impairment of Goodwill
10,151
—
10,151
—
589,010
572,084
1,862,516
1,754,638
OPERATING PROFIT
36,811
78,321
123,213
276,739
Interest Expense
(9,463
)
(444
)
(28,700
)
(1,392
)
EARNINGS BEFORE INCOME TAX
EXPENSE
27,348
77,877
94,513
275,347
INCOME TAX EXPENSE
11,343
20,464
31,889
69,609
NET EARNINGS
$
16,005
$
57,413
$
62,624
$
205,738
EARNINGS PER SHARE
Basic
$
0.32
$
0.87
$
1.18
$
3.07
Assuming Dilution
$
0.32
$
0.86
$
1.18
$
3.06
WEIGHTED AVERAGE SHARES
OUTSTANDING:
Basic
50,461
66,092
52,896
66,938
Assuming Dilution
50,547
66,385
53,053
67,319
PROG Holdings, Inc.
Consolidated Balance
Sheets
(In thousands, except share
data)
(Unaudited)
September 30,
2022
December 31,
2021
ASSETS:
Cash and Cash Equivalents
$
221,886
$
170,159
Accounts Receivable (net of allowances of
$85,734 in 2022 and $71,233 in 2021)
56,543
66,270
Lease Merchandise (net of accumulated
depreciation and allowances of $510,217 in 2022 and $463,929 in
2021)
566,148
714,055
Loans Receivable (net of allowances and
unamortized fees of $54,031 in 2022 and $53,300 in 2021)
130,136
119,315
Property and Equipment, Net
24,871
25,648
Operating Lease Right-of-Use Assets
12,448
17,488
Goodwill
296,061
306,212
Other Intangibles, Net
120,135
137,305
Income Tax Receivable
10,968
14,352
Deferred Income Tax Assets
2,760
2,760
Prepaid Expenses and Other Assets
49,535
48,197
Total Assets
$
1,491,491
$
1,621,761
LIABILITIES & SHAREHOLDERS’
EQUITY:
Accounts Payable and Accrued Expenses
$
137,575
$
135,954
Deferred Income Tax Liability
140,517
146,265
Customer Deposits and Advance Payments
33,952
45,070
Operating Lease Liabilities
22,341
25,410
Debt
590,642
589,654
Total Liabilities
925,027
942,353
SHAREHOLDERS' EQUITY:
Common Stock, Par Value $0.50 Per Share:
Authorized: 225,000,000 Shares at September 30, 2022 and December
31, 2021; Shares Issued: 82,078,654 at September 30, 2022 and
December 31, 2021
41,039
41,039
Additional Paid-in Capital
335,642
332,244
Retained Earnings
1,118,150
1,055,526
1,494,831
1,428,809
Less: Treasury Shares at Cost
Common Stock: 32,046,014 Shares at
September 30, 2022 and 25,638,057 at December 31, 2021
(928,367
)
(749,401
)
Total Shareholders’ Equity
566,464
679,408
Total Liabilities & Shareholders’
Equity
$
1,491,491
$
1,621,761
PROG Holdings, Inc.
Consolidated Statements of
Cash Flows
(In thousands)
(Unaudited)
Nine Months Ended September
30,
2022
2021
OPERATING ACTIVITIES:
Net Earnings
$
62,624
$
205,738
Adjustments to Reconcile Net Earnings to
Cash Provided by Operating Activities:
Depreciation of Lease Merchandise
1,358,713
1,380,572
Other Depreciation and Amortization
25,446
21,954
Provisions for Accounts Receivable and
Loan Losses
318,314
152,523
Stock-Based Compensation
13,930
14,803
Deferred Income Taxes
(5,748
)
16,948
Impairment of Goodwill
10,151
—
Non-Cash Lease Expense
838
708
Other Changes, Net
(5,785
)
(2,715
)
Changes in Operating Assets and
Liabilities, Net of Effects of Acquisitions:
Additions to Lease Merchandise
(1,369,388
)
(1,446,046
)
Book Value of Lease Merchandise Sold or
Disposed
158,582
87,005
Accounts Receivable
(280,096
)
(143,970
)
Prepaid Expenses and Other Assets
(1,077
)
(3,864
)
Income Tax Receivable and Payable
3,411
(18,529
)
Operating Lease Right-of-Use Assets and
Liabilities
1,133
(1,411
)
Accounts Payable and Accrued Expenses
3,220
37,973
Customer Deposits and Advance Payments
(11,118
)
(6,799
)
Cash Provided by Operating Activities
283,150
294,890
INVESTING ACTIVITIES:
Investments in Loans Receivable
(147,711
)
(139,980
)
Proceeds from Loans Receivable
115,226
97,158
Outflows on Purchases of Property and
Equipment
(7,488
)
(6,815
)
Proceeds from Property and Equipment
18
55
Proceeds (Outflows) from Acquisitions of
Businesses
6
(22,942
)
Cash Used in Investing Activities
(39,949
)
(72,524
)
FINANCING ACTIVITIES:
Acquisition of Treasury Stock
(187,361
)
(128,233
)
Tender Offer Shares Repurchased and
Retired
(274
)
—
Issuance of Stock Under Stock Option
Plans
663
3,133
Shares Withheld for Tax Payments
(2,902
)
(5,123
)
Debt Issuance Costs
(1,600
)
—
Cash Used in Financing Activities
(191,474
)
(130,223
)
Increase in Cash and Cash Equivalents
51,727
92,143
Cash and Cash Equivalents at Beginning of
Period
170,159
36,645
Cash and Cash Equivalents at End of
Period
$
221,886
$
128,788
Net Cash Paid During the Period:
Interest
$
17,306
$
1,093
Income Taxes
$
31,087
$
44
PROG Holdings, Inc.
Quarterly Revenues by
Segment
(In thousands)
(Unaudited)
Three Months Ended
September 30, 2022
Progressive Leasing
Vive
Other
Consolidated Total
Lease Revenues and Fees
$
606,585
$
—
$
—
$
606,585
Interest and Fees on Loans Receivable
—
18,392
844
19,236
Total Revenues
$
606,585
$
18,392
$
844
$
625,821
(Unaudited)
Three Months Ended
September 30, 2021
Progressive Leasing
Vive
Other
Consolidated Total
Lease Revenues and Fees
$
635,025
$
—
$
—
$
635,025
Interest and Fees on Loans Receivable
—
15,212
168
15,380
Total Revenues
$
635,025
$
15,212
$
168
$
650,405
PROG Holdings, Inc.
Nine Months Revenues by
Segment
(In thousands)
(Unaudited)
Nine Months Ended
September 30, 2022
Progressive Leasing
Vive
Other
Consolidated Total
Lease Revenues and Fees
$
1,930,843
$
—
$
—
$
1,930,843
Interest and Fees on Loans Receivable
—
53,026
1,860
54,886
Total Revenues
$
1,930,843
$
53,026
$
1,860
$
1,985,729
(Unaudited)
Nine Months Ended
September 30, 2021
Progressive Leasing
Vive
Other
Consolidated Total
Lease Revenues and Fees
$
1,989,055
$
—
$
—
$
1,989,055
Interest and Fees on Loans Receivable
—
42,154
168
42,322
Total Revenues
$
1,989,055
$
42,154
$
168
$
2,031,377
PROG Holdings, Inc.
Gross Merchandise Volume by
Quarter
(In thousands)
(Unaudited)
Three Months Ended September
30,
2022
2021
Progressive Leasing
$
437,417
$
493,277
Vive
47,967
49,085
Other
15,786
2,655
Total
$
501,170
$
545,017
PROG Holdings, Inc.
Gross Leased Assets by
Quarter
(In thousands)
(Unaudited)
March 31,
June 30,
September 30,
December 31,
Gross Leased Assets:
2018
$
868,708
2019
$
860,456
$
908,721
$
952,079
1,080,107
2020
1,019,106
930,984
934,644
1,019,570
2021
951,099
1,004,430
1,042,288
1,177,984
2022
1,118,782
1,124,903
1,076,364
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 nine months
ended September 30, 2022 and the full year 2022 outlook, exclude
intangible amortization expense, restructuring expenses, impairment
of goodwill, 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 nine months ended September 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 nine
months ended September 30, 2022 and the full year 2022 outlook
exclude stock-based compensation expense, restructuring expenses,
and impairment of goodwill. Adjusted EBITDA for the three and nine
months ended September 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 nine 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
Nine Months Ended
September 30,
September 30,
2022
2021
2022
2021
Net Earnings
$
16,005
$
57,413
$
62,624
$
205,738
Add: Intangible Amortization Expense
5,724
5,723
17,171
16,565
Add: Transaction Expense
—
—
—
561
Add: Restructuring Expense
4,673
—
9,001
—
Add: Impairment of Goodwill
10,151
—
10,151
—
Less: Tax Impact of Adjustments(1)
(2,703
)
(1,488
)
(6,804
)
(4,452
)
Add: Accrued Interest on FTC Settlement
Uncertain Tax Position
755
1,040
1,941
1,040
Non-GAAP Net Earnings
$
34,605
$
62,688
$
94,084
$
219,452
Earnings Per Share Assuming Dilution
$
0.32
$
0.86
$
1.18
$
3.06
Add: Intangible Amortization Expense
0.11
0.09
0.32
0.25
Add: Transaction Expense
—
—
—
0.01
Add: Restructuring Expense
0.09
—
0.17
—
Add: Impairment of Goodwill
0.20
—
0.19
—
Less: Tax Impact of Adjustments(1)
(0.05
)
(0.02
)
(0.13
)
(0.07
)
Add: Accrued Interest on FTC Settlement
Uncertain Tax Position
0.01
0.02
0.04
0.02
Non-GAAP Earnings Per Share Assuming
Dilution(2)
$
0.68
$
0.94
$
1.77
$
3.26
Weighted Average Shares Outstanding
Assuming Dilution
50,547
66,385
53,053
67,319
(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
September 30, 2022
Progressive Leasing
Vive
Other
Consolidated Total
Net Earnings
$
16,005
Income Taxes(1)
11,343
Earnings (Loss) Before Income Taxes
$
43,492
$
1,376
$
(17,520
)
27,348
Interest Expense
9,365
98
—
9,463
Depreciation
2,355
204
142
2,701
Amortization
5,421
—
303
5,724
EBITDA
60,633
1,678
(17,075
)
45,236
Stock-Based Compensation
3,107
104
1,679
4,890
Restructuring Expense
4,670
3
—
4,673
Impairment of Goodwill
—
—
10,151
10,151
Adjusted EBITDA
$
68,410
$
1,785
$
(5,245
)
$
64,950
(1)
Taxes are calculated on a consolidated
basis and are not identifiable by Company Segment.
(Unaudited)
Three Months Ended
September 30, 2021
Progressive Leasing
Vive
Other
Consolidated Total
Net Earnings
$
57,413
Income Taxes(1)
20,464
Earnings (Loss) Before Income Taxes
$
76,435
$
6,354
$
(4,912
)
77,877
Interest Expense
307
137
—
444
Depreciation
2,627
240
13
2,880
Amortization
5,421
—
302
5,723
EBITDA
84,790
6,731
(4,597
)
86,924
Stock-Based Compensation
3,587
78
3,002
6,667
Adjusted EBITDA
$
88,377
$
6,809
$
(1,595
)
$
93,591
(1)
Taxes are calculated on a consolidated
basis and are not identifiable by Company Segment.
PROG Holdings, Inc.
Non-GAAP Financial
Information
Nine Month Segment
EBITDA
(In thousands)
(Unaudited)
Nine Months Ended
September 30, 2022
Progressive Leasing
Vive
Other
Consolidated Total
Net Earnings
$
62,624
Income Taxes(1)
31,889
Earnings (Loss) Before Income Taxes
$
112,956
$
9,154
$
(27,597
)
94,513
Interest Expense
28,413
287
—
28,700
Depreciation
7,408
596
271
8,275
Amortization
16,263
—
908
17,171
EBITDA
165,040
10,037
(26,418
)
148,659
Stock-Based Compensation
9,708
291
3,931
13,930
Restructuring Expense
8,343
658
—
9,001
Impairment of Goodwill
—
—
10,151
10,151
Adjusted EBITDA
$
183,091
$
10,986
$
(12,336
)
$
181,741
(1)
Taxes are calculated on a consolidated
basis and are not identifiable by Company Segment.
(Unaudited)
Nine Months Ended
September 30, 2021
Progressive Leasing
Vive
Other
Consolidated Total
Net Earnings
$
205,738
Income Taxes(1)
69,609
Earnings (Loss) Before Income Taxes
$
268,128
$
12,131
$
(4,912
)
275,347
Interest Expense
1,062
330
—
1,392
Depreciation
7,253
625
13
7,891
Amortization
16,263
—
302
16,565
EBITDA
292,706
13,086
(4,597
)
301,195
Stock-Based Compensation
11,592
209
3,002
14,803
Transaction Expense
561
—
—
561
Adjusted EBITDA
$
304,859
$
13,295
$
(1,595
)
$
316,559
(1)
Taxes are calculated on a consolidated
basis and are not identifiable by Company Segment.
PROG Holdings, Inc.
Reconciliation of Full Year
2022 Revised Outlook for Adjusted EBITDA
(In thousands)
Consolidated Total
Estimated Net Earnings
$85,500 - $88,500
Income Taxes
40,500 - 41,500
Projected Earnings Before Taxes
126,000 - 130,000
Interest Expense
38,000
Depreciation
11,000
Amortization
23,000
Projected EBITDA
198,000 - 202,000
Stock-Based Compensation
18,000-19,000
Restructuring Expense
9,000
Impairment of Goodwill
10,000
Projected Adjusted EBITDA
$235,000 - $240,000
PROG Holdings, Inc.
Reconciliation of Full Year
2022 Revised Outlook for Earnings Per Share
Assuming Dilution to Non-GAAP
Earnings Per Share Assuming Dilution
Full Year 2022 Range
Low
High
Projected Earnings Per Share Assuming
Dilution
$
1.63
$
1.69
Add: Projected Intangible Amortization
Expense(1)
0.32
0.32
Add: Restructuring Expense(1)
0.13
0.13
Add: Impairment of Goodwill
0.19
0.19
Add: Projected Interest on FTC Settlement
Uncertain Tax Position
0.05
0.05
Projected Non-GAAP Earnings Per Share
Assuming Dilution(2)
$
2.32
$
2.38
(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.
Reconciliation of Full Year
2022 Previous Outlook for Adjusted EBITDA
(In thousands)
Consolidated Total
Estimated Net Earnings
$111,000 - $124,000
Income Taxes
43,000 - 48,000
Projected Earnings Before Taxes
154,000 - 172,000
Interest Expense
38,000
Depreciation
11,000
Amortization
22,000
Projected EBITDA
225,000 - 243,000
Stock-Based Compensation
26,000-27,000
Restructuring Expense
4,000-5,000
Projected Adjusted EBITDA
$255,000 - $275,000
PROG Holdings, Inc.
Reconciliation of Full Year
2022 Previous Outlook for Earnings Per Share
Assuming Dilution to Non-GAAP
Earnings Per Share Assuming Dilution
Full Year 2022 Range
Low
High
Projected Earnings Per Share Assuming
Dilution
$
2.09
$
2.33
Add: Projected Intangible Amortization
Expense(1)
0.31
0.31
Add: Restructuring Expense(1)
0.06
0.07
Add: Projected Interest on FTC Settlement
Uncertain Tax Position
0.04
0.04
Projected Non-GAAP Earnings Per Share
Assuming Dilution(2)
$
2.50
$
2.75
(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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221026005369/en/
Investor Contact John Baugh, CFA Vice President, Investor
Relations john.baugh@progleasing.com
Media Contact Mark Delcorps Director, Corporate
Communications media@progholdings.com
PROG (NYSE:PRG)
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