PROG Holdings Announces Cost Savings Actions
25 Januar 2024 - 10:05PM
Business Wire
PROG Holdings, Inc. (NYSE:PRG), the fintech holding company for
Progressive Leasing, Vive Financial, Four Technologies, and Build,
today announced several actions as a continuation of cost reduction
initiatives expected to result in annual pre-tax savings for the
Company.
These additional actions, which include a reduction in
workforce, the termination of certain independent sales agent
agreements, and office space consolidation, are intended to drive
efficiencies within the Company’s cost structure while enabling it
to remain committed to funding growth-related initiatives.
The Company believes that these actions, which are expected to
be substantially completed during the first quarter of 2024, will
result in annualized pre-tax savings of approximately $15
million.
“While our GMV in the fourth quarter of 2023 was better than
expected, our overall lease portfolio size was down entering 2024
and we must continue to actively manage our business to best
position us for future success,” said PROG Holdings President and
CEO Steve Michaels. “Decisions impacting our employees are never
easy, however our company is stronger because of their
contributions, and I am incredibly proud of what we have achieved
together.”
The Company is also providing an update to select financial
metrics from the outlook provided in its Q3 2023 earnings release.
Total revenues and diluted non-GAAP EPS are expected to meet or
slightly exceed the high-end of the full-year 2023 outlook, while
Adjusted EBITDA is expected to be within the provided range. In
addition, the Company’s gross merchandise volume for the fourth
quarter of 2023 was better than expected.
PROG Holdings will discuss these actions and provide additional
updates on its business during its fourth quarter earnings call on
Wednesday, February 21, 2024, which can be accessed via 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,
Four Technologies, a provider of Buy Now, Pay Later payment options
through its platform, Four, and Build, provider of personal credit
building products. More information on PROG Holdings and its
companies can be found at https://investor.progholdings.com/.
Forward Looking Statements:
This press release contains statements that constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934, each as amended. All statements other than statements
of historical fact made herein are forward-looking statements,
including, without limitation, statements regarding the update to
the Company’s full year 2023 outlook, the intended effects of the
Company’s continuation of its cost reduction initiatives, the
timing of completion of the Company’s continuation of its cost
reduction initiatives, and the Company’s estimates and expectations
regarding the amount of annualized pre-tax savings associated with
those initiatives. The Company has based these forward-looking
statements on current expectations and assumptions regarding the
cost reduction initiatives, which are subject to risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied in the forward-looking statements.
These risks and uncertainties include, but are not limited to, the
risk of additional unexpected costs, charges and expenditures
related to the continuation of the cost reduction initiatives, the
risk that the Company will not achieve the anticipated pre-tax
savings from the continuation of the cost reduction initiatives,
the risk that the Company’s continuation of its cost reduction
initiatives may negatively impact the Company’s revenue, business
operations and reputation and other risks and uncertainties outside
of our control. Additional risks and uncertainties that may cause
actual results to differ materially include the risks and
uncertainties listed in the Company’s filings with the Securities
and Exchange Commission (“SEC”), including the Company’s most
recent Annual Report on Form 10-K for the fiscal year ended
December 31, 2022, filed with the SEC on February 22, 2023 and the
Company’s Quarterly Report on Form 10-Q for the fiscal quarter
ended September 30, 2023, filed with the SEC on October 25, 2023.
In providing forward-looking statements, the Company is not
undertaking any duty or obligation to update these statements
publicly as a result of new information, future events or
otherwise, except as required by law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240125485436/en/
Investor Contact John A. Baugh, CFA VP, Investor
Relations john.baugh@progleasing.com
Media Contact Mark Delcorps Director, Corporate
Communications media@progholdings.com
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