- Consolidated revenues of $655.1 million, earnings before taxes
of $67.6 million;
- Adjusted EBITDA of $89.7 million, increase of 38.9%
year-over-year
- Diluted EPS of $1.00; Non-GAAP Diluted EPS of $1.11, up 94.7%
year-over-year
- Progressive Leasing write-offs of 6.0%, down from 7.3% in Q1
2022
- E-commerce increased 100bps to 16.9% 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 first quarter ended March 31,
2023.
"We're pleased with our strong start to the year, with first
quarter results exceeding expectations due to a favorable shift in
our lease dispositions and the decisive actions we have taken to
strengthen our portfolio and reduce our operating expenses," said
PROG Holdings President and CEO Steve Michaels. "The strength of
our first quarter earnings combined with the current stability of
our lease portfolio gives us the confidence to increase our
earnings outlook for the year despite continued soft consumer
demand in our key categories. We have been successful in our
efforts to protect our margins and position our company for
long-term success regardless of macroeconomic conditions and expect
to continue to do so during this uncertain environment. Our
financial strength, highlighted by strong margins and cash flow,
continues to enable us to selectively invest in key initiatives to
support our longer-term growth plans at a time when growth is
challenged," concluded Michaels.
Consolidated revenues for the first quarter of 2023 were $655.1
million, a decrease of 7.8% from the same period in 2022 due to
tightened lease decisioning in mid-2022, decreased customer demand
for leasable goods, and a year-over-year decline in the number of
customers exercising early lease buyouts. This decline in revenues
was partially offset by year-over-year improvements in customer
payment behavior during the first quarter of 2023.
The Company reported consolidated net earnings for the first
quarter of 2023 of $48.0 million, compared with $27.1 million in
the prior year period. Adjusted EBITDA for the quarter increased
38.9% to $89.7 million, or 13.7% of revenues, compared with $64.6
million, or 9.1% of revenues for the same period in 2022. The
year-over-year growth in Adjusted EBITDA was driven primarily by
historically low 90 day buyout activity for the period, improved
customer payment behavior resulting from prior lease decisioning
tightening, benefit from previous cost-cutting measures, and
continued portfolio management.
Diluted earnings per share for the first quarter of 2023 were
$1.00 compared with $0.49 in the year ago period. On a non-GAAP
basis, diluted earnings per share were $1.11 in the first quarter
of 2023, compared with $0.57 for the same quarter in 2022. Our
weighted average shares outstanding assuming dilution in the first
quarter was 13.6% lower than the same quarter in 2022.
Progressive Leasing Results
Progressive Leasing's first quarter GMV decreased 17.0% to
$418.7 million compared with the same period in 2022, primarily due
to the Company's current decisioning posture on lease approvals and
weaker traffic patterns for its retail partners. E-commerce GMV
within the segment decreased 11.7% year-over-year; however, the
rate of decline in e-commerce was less than in-store, and the
channel increased 100 basis points to 16.9% of the segment's total
GMV in the first quarter of 2023. The provision for lease
merchandise write-offs declined to 6.0% of lease revenues in the
first quarter of 2023, driven by continued portfolio management and
strong customer payment behavior. The Company continued to see
improved delinquency trends within the quarter as a result of the
steps taken to tighten decisioning in 2022.
Liquidity and Capital Allocation
PROG Holdings ended the first quarter of 2023 with cash of
$249.8 million and gross debt of $600 million. The Company
repurchased $36.5 million of its stock in the quarter at an average
price of $25 per share and has $300.8 million remaining under its
previously announced $1 billion share repurchase program.
2023 Outlook
The Company is revising upwards its full year earnings outlook,
lowering modestly our revenue expectations, and providing a Q2 2023
outlook for revenues, net earnings, adjusted EBITDA, GAAP diluted
EPS, and non-GAAP diluted EPS. The strength of our Q1 earnings
combined with the anticipation that gross margins will be a larger
tailwind than originally expected are the primary factors informing
the increase in our annual earnings 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 or portfolio performance, and no impact from
additional share repurchases.
Revised Outlook
Previous Outlook
(In thousands, except per share
amounts)
Low
High
Low
High
PROG Holdings - Total Revenues
$
2,300,000
$
2,375,000
$
2,340,000
$
2,440,000
PROG Holdings - Net Earnings
99,500
112,500
82,500
103,500
PROG Holdings - Adjusted EBITDA
235,000
255,000
215,000
245,000
PROG Holdings - Diluted EPS
2.09
2.37
1.69
2.12
PROG Holdings - Diluted Non-GAAP EPS
2.50
2.77
2.11
2.54
Progressive Leasing - Total Revenues
2,235,000
2,305,000
2,275,000
2,370,000
Progressive Leasing - Earnings Before
Taxes
123,000
131,000
147,000
167,000
Progressive Leasing - Adjusted EBITDA
248,000
261,000
228,000
251,000
Vive - Total Revenues
65,000
70,000
65,000
70,000
Vive - Earnings Before Taxes
2,500
4,500
2,500
4,500
Vive - Adjusted EBITDA
5,000
8,000
5,000
8,000
Other - Loss Before Taxes
(26,000
)
(23,000
)
(26,000
)
(23,000
)
Other - Adjusted EBITDA
(18,000
)
(14,000
)
(18,000
)
(14,000
)
Three Months Ended June 30,
2023 Outlook
(In thousands, except per share
amounts)
Low
High
PROG Holdings - Total Revenues
$
565,000
$
585,000
PROG Holdings - Net Earnings
24,000
28,000
PROG Holdings - Adjusted EBITDA
60,000
65,000
PROG Holdings - Diluted EPS
0.51
0.59
PROG Holdings - Diluted Non-GAAP EPS
0.62
0.70
Conference Call and Webcast
The Company has scheduled a live webcast and conference call for
Wednesday, April 26th, 2023, at 8:30 A.M. ET to discuss its
financial results for the first quarter of 2023. 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", "outlook",
"should", 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, significant increases
in interest rates, and fears of a recession, and the impact of
those headwinds 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) our businesses being subject to
extensive laws and regulations, including laws and regulations
unique to the industries in which our businesses operate, that may
subject them to government investigations and significant monetary
penalties and compliance-related burdens, as well as an increased
focus by federal, state and local regulators on the industries
within which our businesses operate, including with respect to
consumer protection, customer privacy, third party and employee
fraud and information security; (iii) deteriorating macroeconomic
conditions resulting in the algorithms and other proprietary
decisioning tools used in approving Progressive Leasing and Vive
customers for leases and loans no longer being indicative of their
ability to perform, which may limit the ability of those businesses
to avoid lease and loan charge-offs or may result in their reserves
being insufficient to cover actual losses; (iv) a large percentage
of the company’s revenues being concentrated with several of
Progressive Leasing’s key POS partners; (v) the risks that
Progressive Leasing will be unable to attract new POS partners or
retain and grow its business with its existing POS partners; (vi)
Vive’s and Four’s business models differing significantly from
Progressive Leasing’s, which creates specific and unique risks for
the Vive and Four businesses, including Vive’s reliance on two bank
partners to issue its credit products and Vive’s and Four’s
exposure to the unique regulatory risks associated with the laws
and regulations that apply to their businesses; (vii) the risks
that interruptions, inventory shortages and other factors affecting
the supply chains of our retail partners having a material and
adverse effect on several aspects of our performance; (viii) 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; (ix) changes in the
enforcement of existing laws and regulations and the adoption of
new laws and regulations that may unfavorably impact our
businesses; (x) the risk that our capital allocation strategy,
including our current share repurchase program, will not be
effective at enhancing shareholder value; (xi) our cost reduction
initiatives may not be adequate or may have unintended consequences
that could be disruptive to our businesses; (xii) the loss of the
services of our key executives or our inability to attract and
retain key talent, particularly with respect to our information
technology function, may have a material adverse impact on our
operations; (xiii) increased competition from traditional and
virtual lease-to-own competitors and also from competitors of our
Vive segment; (xiv) 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; (xv) our increased level of indebtedness; (xvi) 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; and (xvii) 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,
2022, filed with the SEC on February 22, 2023. Statements in this
press release that are "forward-looking" include without limitation
statements about: (i) the strength of our margins and our ability
to protect them; (ii) our ability to invest in initiatives to
support our longer-term growth, and the outcome of those growth
initiatives; and (iii) our revised full year outlook and our
second-quarter 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
March 31,
2023
2022
REVENUES:
Lease Revenues and Fees
$
637,082
$
692,914
Interest and Fees on Loans Receivable
18,058
17,550
655,140
710,464
COSTS AND EXPENSES:
Depreciation of Lease Merchandise
435,439
497,011
Provision for Lease Merchandise
Write-offs
38,364
50,330
Operating Expenses
105,259
113,658
579,062
660,999
OPERATING PROFIT
76,078
49,465
Interest Expense, Net
(8,491
)
(9,629
)
EARNINGS BEFORE INCOME TAX
EXPENSE
67,587
39,836
INCOME TAX EXPENSE
19,554
12,701
NET EARNINGS
$
48,033
$
27,135
EARNINGS PER SHARE
Basic
$
1.00
$
0.49
Assuming Dilution
$
1.00
$
0.49
WEIGHTED AVERAGE SHARES
OUTSTANDING:
Basic
47,854
55,402
Assuming Dilution
48,139
55,706
PROG Holdings, Inc.
Consolidated Balance
Sheets
(In thousands, except share
data)
(Unaudited)
March 31, 2023
December 31,
2022
ASSETS:
Cash and Cash Equivalents
$
249,844
$
131,880
Accounts Receivable (net of allowances of
$65,170 in 2023 and $69,264 in 2022)
55,819
64,521
Lease Merchandise (net of accumulated
depreciation and allowances of $454,444 in 2023 and $467,355 in
2022)
571,668
648,043
Loans Receivable (net of allowances and
unamortized fees of $50,149 in 2023 and $53,635 in 2022)
122,352
130,966
Property and Equipment, Net
23,253
23,852
Operating Lease Right-of-Use Assets
11,234
11,875
Goodwill
296,061
296,061
Other Intangibles, Net
108,688
114,411
Income Tax Receivable
14,054
18,864
Deferred Income Tax Assets
2,955
2,955
Prepaid Expenses and Other Assets
53,658
48,481
Total Assets
$
1,509,586
$
1,491,909
LIABILITIES & SHAREHOLDERS’
EQUITY:
Accounts Payable and Accrued Expenses
$
152,379
$
135,025
Deferred Income Tax Liabilities
126,901
137,261
Customer Deposits and Advance Payments
34,481
37,074
Operating Lease Liabilities
19,742
21,122
Debt
591,291
590,966
Total Liabilities
924,794
921,448
SHAREHOLDERS' EQUITY:
Common Stock, Par Value $0.50 Per Share:
Authorized: 225,000,000 Shares at March 31, 2023 and December 31,
2022; Shares Issued: 82,078,654 at March 31, 2023 and December 31,
2022
41,039
41,039
Additional Paid-in Capital
337,103
338,814
Retained Earnings
1,202,268
1,154,235
1,580,410
1,534,088
Less: Treasury Shares at Cost
Common Stock: 35,336,539 Shares at March
31, 2023 and 34,044,102 at December 31, 2022
(995,618
)
(963,627
)
Total Shareholders’ Equity
584,792
570,461
Total Liabilities & Shareholders’
Equity
$
1,509,586
$
1,491,909
PROG Holdings, Inc.
Consolidated Statements of
Cash Flows
(In thousands)
(Unaudited) Three
Months Ended March 31,
2023
2022
OPERATING ACTIVITIES:
Net Earnings
$
48,033
$
27,135
Adjustments to Reconcile Net Earnings to
Cash Provided by Operating Activities:
Depreciation of Lease Merchandise
435,439
497,011
Other Depreciation and Amortization
7,979
8,482
Provisions for Accounts Receivable and
Loan Losses
78,665
96,230
Stock-Based Compensation
5,415
6,623
Deferred Income Taxes
(10,360
)
6,100
Non-Cash Lease Expense
(739
)
274
Other Changes, Net
(814
)
(1,709
)
Changes in Operating Assets and
Liabilities, Net of Effects of Acquisitions:
Additions to Lease Merchandise
(399,289
)
(480,113
)
Book Value of Lease Merchandise Sold or
Disposed
40,225
51,933
Accounts Receivable
(61,249
)
(94,743
)
Prepaid Expenses and Other Assets
(5,087
)
(9,395
)
Income Tax Receivable and Payable
26,295
841
Operating Lease Right-of-Use Assets and
Liabilities
—
(556
)
Accounts Payable and Accrued Expenses
(4,501
)
(4,237
)
Customer Deposits and Advance Payments
(2,593
)
(5,577
)
Cash Provided by Operating Activities
157,419
98,299
INVESTING ACTIVITIES:
Investments in Loans Receivable
(43,045
)
(42,323
)
Proceeds from Loans Receivable
44,128
39,052
Outflows on Purchases of Property and
Equipment
(1,678
)
(2,328
)
Proceeds from Property and Equipment
5
6
Proceeds from Acquisitions of
Businesses
—
7
Cash Used in Investing Activities
(590
)
(5,586
)
FINANCING ACTIVITIES:
Acquisition of Treasury Stock
(36,472
)
(78,080
)
Tender Offer Shares Repurchased and
Retired
—
199
Shares Withheld for Tax Payments
(2,393
)
(2,516
)
Debt Issuance Costs
—
1,535
Cash Used in Financing Activities
(38,865
)
(78,862
)
(Decrease) Increase in Cash and Cash
Equivalents
117,964
13,851
Cash and Cash Equivalents at Beginning of
Period
131,880
170,159
Cash and Cash Equivalents at End of
Period
$
249,844
$
184,010
Net Cash Paid During the Period:
Interest Expense
$
268
$
185
Income Taxes
$
2,532
$
4,157
PROG Holdings, Inc.
Quarterly Revenues by
Segment
(In thousands)
(Unaudited)
Three Months Ended
March 31, 2023
Progressive Leasing
Vive
Other
Consolidated Total
Lease Revenues and Fees
$
637,082
$
—
$
—
$
637,082
Interest and Fees on Loans Receivable
—
17,153
905
18,058
Total Revenues
$
637,082
$
17,153
$
905
$
655,140
(Unaudited)
Three Months Ended
March 31, 2022
Progressive Leasing
Vive
Other
Consolidated Total
Lease Revenues and Fees
$
692,914
$
—
$
—
$
692,914
Interest and Fees on Loans Receivable
—
17,116
434
17,550
Total Revenues
$
692,914
$
17,116
$
434
$
710,464
PROG Holdings, Inc.
Quarterly Revenues by
Segment
(In thousands)
(Unaudited)
Three Months Ended March
31,
2023
2022
Progressive Leasing
$
418,683
$
504,462
Vive
36,530
42,614
Other
13,607
7,086
Total
$
468,820
$
554,162
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 months ended
March 31, 2023, full year 2023 outlook and second quarter 2023
outlook exclude intangible amortization expense, restructuring
expenses, regulatory insurance recoveries, and accrued interest on
an uncertain tax position related to Progressive Leasing's $175
million settlement with the FTC in 2020. Non-GAAP net earnings and
non-GAAP diluted earnings per share for the three months ended
March 31, 2022 exclude intangible amortization expense and accrued
interest on an uncertain tax position related to Progressive
Leasing's $175 million settlement with the FTC in 2020. 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 months ended
March 31, 2023, full year 2023 outlook and second quarter 2023
outlook exclude stock-based compensation expense, restructuring
expenses, and regulatory insurance recoveries. Adjusted EBITDA for
the three months ended March 31, 2022 exclude stock-based
compensation expense. The amounts for these pre-tax non-GAAP
adjustments can be found in the three 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)
Three Months Ended
March 31,
2023
2022
Net Earnings
$
48,033
$
27,135
Add: Intangible Amortization Expense
5,724
5,724
Add: Restructuring Expense
757
—
Less: Tax Impact of Adjustments(1)
(1,549
)
(1,488
)
Add: Accrued Interest on FTC Settlement
Uncertain Tax Position
970
539
Less: Regulatory Insurance Recoveries
(525
)
—
Non-GAAP Net Earnings
$
53,410
$
31,910
Earnings Per Share Assuming Dilution
$
1.00
$
0.49
Add: Intangible Amortization Expense
0.12
0.10
Add: Restructuring Expense
0.02
—
Less: Tax Impact of Adjustments(1)
(0.03
)
(0.03
)
Add: Accrued Interest on FTC Settlement
Uncertain Tax Position
0.02
0.01
Less: Regulatory Insurance Recoveries
(0.01
)
—
Non-GAAP Earnings Per Share Assuming
Dilution(2)
$
1.11
$
0.57
Weighted Average Shares Outstanding
Assuming Dilution
48,139
55,706
(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
March 31, 2023
Progressive Leasing
Vive
Other
Consolidated Total
Net Earnings
$
48,033
Income Tax Expense(1)
19,554
Earnings (Loss) Before Income Tax
Expense
$
71,051
$
2,163
$
(5,627
)
67,587
Interest Expense
8,200
291
—
8,491
Depreciation
1,905
168
182
2,255
Amortization
5,421
—
303
5,724
EBITDA
86,577
2,622
(5,142
)
84,057
Stock-Based Compensation
3,553
288
1,574
5,415
Restructuring Expense
757
—
—
757
Regulatory Insurance Recoveries
(525
)
—
—
(525
)
Adjusted EBITDA
$
90,362
$
2,910
$
(3,568
)
$
89,704
(1)
Taxes are calculated on a
consolidated basis and are not identifiable by Company Segment.
(Unaudited)
Three Months Ended
March 31, 2022
Progressive Leasing
Vive
Other
Consolidated Total
Net Earnings
$
27,135
Income Tax Expense(1)
12,701
Earnings (Loss) Before Income Tax
Expense
$
42,081
$
4,423
$
(6,668
)
39,836
Interest Expense
9,523
106
—
9,629
Depreciation
2,529
197
32
2,758
Amortization
5,421
—
303
5,724
EBITDA
59,554
4,726
(6,333
)
57,947
Stock-Based Compensation
3,958
88
2,577
6,623
Adjusted EBITDA
$
63,512
$
4,814
$
(3,756
)
$
64,570
(1)
Taxes are calculated on a
consolidated basis and are not identifiable by Company Segment.
PROG Holdings, Inc.
Non-GAAP Financial
Information
Reconciliation of Revised Full
Year 2023 Outlook for Adjusted EBITDA
(In thousands)
Fiscal Year 2023 Ranges
Progressive Leasing
Vive
Other
Consolidated Total
Estimated Net Earnings
$99,500 - $112,500
Income Tax Expense(1)
45,000 - 49,000
Projected Earnings Before Income Tax
Expense
$123,000 - $131,000
$2,500 - $4,500
$(26,000) - $(23,000)
144,500 - 161,500
Interest Expense
32,000
1,000
—
33,000
Depreciation
9,000
1,000
1,500
11,500
Amortization
21,000
—
1,500
22,500
Projected EBITDA
230,000 - 242,000
4,500 - 6,500
(23,000) - (20,000)
211,500 - 228,500
Stock-Based Compensation
18,000 - 19,000
500 - 1,500
5,000 - 6,000
23,500 - 26,500
Projected Adjusted EBITDA
$248,000 - $261,000
$5,000 - $8,000
$(18,000) - $(14,000)
$235,000 - $255,000
(1)
Taxes are calculated on a
consolidated basis and are not identifiable by Company Segment.
PROG Holdings, Inc.
Non-GAAP Financial
Information
Reconciliation of Previous
Full Year 2023 Outlook for Adjusted EBITDA
(In thousands)
Fiscal Year 2023 Ranges
Progressive Leasing
Vive
Other
Consolidated Total
Estimated Net Earnings
$82,500 - $103,500
Income Tax Expense(1)
41,000 - 45,000
Projected Earnings Before Income Tax
Expense
$147,000 - $167,000
$2,500 - $4,500
$(26,000) - $(23,000)
123,500 - 148,500
Interest Expense
34,000
1,000
—
35,000
Depreciation
8,000
1,000
1,500
10,500
Amortization
22,000
—
1,500
23,500
Projected EBITDA
211,000 - 231,000
4,500 - 6,500
(23,000) - (20,000)
192,500 - 217,500
Stock-Based Compensation
17,000 - 20,000
500 - 1,500
5,000 - 6,000
22,500 - 27,500
Projected Adjusted EBITDA
$228,000 - $251,000
$5,000 - $8,000
$(18,000) - $(14,000)
$215,000 - $245,000
(1)
Taxes are calculated on a
consolidated basis and are not identifiable by Company Segment.
PROG Holdings, Inc.
Non-GAAP Financial
Information
Reconciliation of the Three
Months Ended June 30, 2023 Outlook for Adjusted EBITDA
(In thousands)
Three Months Ended June 30, 2023
Outlook
Consolidated Total
Estimated Net Earnings
$24,000 - $28,000
Income Tax Expense(1)
11,000 - 12,000
Projected Earnings Before Income Tax
Expense
35,000 - 40,000
Interest Expense
9,000
Depreciation
3,000
Amortization
6,000
Projected EBITDA
53,000 - 58,000
Stock-Based Compensation
7,000
Projected Adjusted EBITDA
$60,000 - $65,000
(1)
Taxes are calculated on a
consolidated basis and are not identifiable by Company
segments.
PROG Holdings, Inc.
Reconciliation of Revised Full
Year 2023 Outlook for Earnings Per Share
Assuming Dilution to Non-GAAP
Earnings Per Share Assuming Dilution
Full Year 2023 Range
Low
High
Projected Earnings Per Share Assuming
Dilution
$
2.09
$
2.37
Add: Projected Intangible Amortization
Expense
0.47
0.47
Add: Projected Interest on FTC Settlement
Uncertain Tax Position
0.06
0.06
Subtract: Tax Effect on Non-GAAP
Adjustments(1)
(0.12
)
(0.12
)
Projected Non-GAAP Earnings Per Share
Assuming Dilution(2)
$
2.50
$
2.77
(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 Previous
Full Year 2023 Outlook for Earnings Per Share
Assuming Dilution to Non-GAAP
Earnings Per Share Assuming Dilution
Full Year 2023 Range
Low
High
Projected Earnings Per Share Assuming
Dilution
$
1.69
$
2.12
Add: Projected Intangible Amortization
Expense
0.48
0.48
Add: Projected Interest on FTC Settlement
Uncertain Tax Position
0.06
0.06
Subtract: Tax Effect on Non-GAAP
Adjustments(1)
(0.13
)
(0.13
)
Projected Non-GAAP Earnings Per Share
Assuming Dilution(2)
$
2.11
$
2.54
(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 the Three
Months Ended June 30, 2023 Outlook for Earnings Per Share
Assuming Dilution to Non-GAAP
Earnings Per Share Assuming Dilution
Three Months Ended June 30,
2023
Low
High
Projected Earnings Per Share Assuming
Dilution
$
0.51
$
0.59
Add: Projected Intangible Amortization
Expense
0.13
0.13
Add: Projected Interest on FTC Settlement
Uncertain Tax Position
0.02
0.02
Subtract: Tax Effect on Non-GAAP
Adjustments(1)
(0.03
)
(0.03
)
Projected Non-GAAP Earnings Per Share
Assuming Dilution(2)
$
0.62
$
0.70
(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/20230426005316/en/
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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