- Consolidated revenues of $612.1 million
- Consolidated earnings before taxes of $53.7 million; Adjusted
EBITDA increased 3.2% year-over-year to $74.4 million or 12.2% of
revenues
- Diluted EPS of $0.73; Non-GAAP Diluted EPS of $0.84, up 25%
year-over-year
- Progressive Leasing write-offs of 6.5%, down from 6.8% in Q4
2021
- E-commerce increased to 20.4% 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 fourth quarter ended December
31, 2022.
"Our fourth quarter results exceeded both our top and bottom
line expectations, primarily driven by decisions made in the first
half of 2022 to improve our portfolio performance and adjust our
cost structure in the face of macroeconomic headwinds," said PROG
Holdings President and CEO Steve Michaels. "During the quarter, we
saw continued improvement in the quality of our lease portfolio as
a result of these decisioning changes, and we were able to deliver
write-offs within our targeted annual range for 2022 despite the
pressures facing our consumers. We believe that our market
leadership and financial strength will allow us to navigate through
this uncertain period, continue to broaden our partner base, and
position us to capitalize on increased consumer demand when the
current macroeconomic headwinds subside."
Consolidated Results
Consolidated revenues for the fourth quarter of 2022 were $612.1
million, a decrease of 5.3% from the same period in 2021, with the
impact of lower approval rates and weak retail traffic partially
offset by an increase in average ticket size, further penetration
with large national retail partners, and additional e-commerce
integrations.
The Company reported consolidated net earnings for the fourth
quarter of 2022 of $36.1 million, compared with $37.8 million in
the prior year period. Adjusted EBITDA for the quarter was $74.4
million, or 12.2% of revenues, compared with $72.1 million, or
11.2% of revenues for the same period in 2021.
The year over year growth in Adjusted EBITDA was driven
primarily by strong portfolio performance and cost disciplines
instituted mid-year to adjust for the anticipated decline in
revenue.
Diluted earnings per share for the fourth quarter of 2022 were
$0.73 compared with $0.59 in the year ago period. On a non-GAAP
basis, diluted earnings per share were $0.84 in the fourth quarter
of 2022, compared with $0.67 for the same quarter in 2021. Our
weighted average shares outstanding assuming dilution in the fourth
quarter was 22.9% lower than the same quarter in 2021.
Progressive Leasing Results
Progressive Leasing's fourth quarter GMV decreased 14.8% to
$540.9 million compared with the same period in 2021, primarily due
to tighter decisioning on lease approvals and weaker traffic
patterns for our retail partners, both in store and online.
E-commerce GMV within the segment decreased 4.4% year-over-year;
however, it increased to 20.4% of the segment's total GMV in the
fourth quarter of 2022. The provision for lease merchandise
write-offs was 6.5% of lease revenues in the fourth quarter of
2022, down both sequentially and year-over-year. We continued to
see improved delinquency trends within the quarter following the
tightening in decisioning made earlier in the year.
Liquidity and Capital Allocation
PROG Holdings ended the fourth quarter of 2022 with cash of
$131.9 million and gross debt of $600 million. The Company
repurchased $36.2 million of its stock in the quarter at an average
price of $17.83 per share and has $337.3 million remaining under
its previously-announced $1 billion share repurchase program.
2023 Outlook
The Company is issuing full year and Q1 2023 outlook for
revenues, net earnings, adjusted EBITDA, GAAP diluted EPS, and
non-GAAP diluted EPS. This outlook assumes a difficult operating
environment with continued soft demand for consumer durable goods,
no material changes in the Company's decisioning posture, and no
impact from additional share repurchases.
Full Year 2023 Outlook
(In thousands, except per share
amounts)
Low
High
PROG Holdings - Total Revenues
$
2,340,000
$
2,440,000
PROG Holdings - Net Earnings
82,500
103,500
PROG Holdings - Adjusted EBITDA
215,000
245,000
PROG Holdings - Diluted EPS
1.69
2.12
PROG Holdings - Diluted Non-GAAP EPS
2.11
2.54
Progressive Leasing - Total Revenues
2,275,000
2,370,000
Progressive Leasing - Earnings Before
Taxes
147,000
167,000
Progressive Leasing - Adjusted EBITDA
228,000
251,000
Vive - Total Revenues
65,000
70,000
Vive - Earnings Before Taxes
2,500
4,500
Vive - Adjusted EBITDA
5,000
8,000
Other - Loss Before Taxes
(26,000
)
(23,000
)
Other - Adjusted EBITDA
(18,000
)
(14,000
)
Three Months Ended March 31,
2023 Outlook
(In thousands, except per share
amounts)
Low
High
PROG Holdings - Total Revenues
$
635,000
$
660,000
PROG Holdings - Net Earnings
34,500
37,500
PROG Holdings - Adjusted EBITDA
72,000
77,000
PROG Holdings - Diluted EPS
0.71
0.77
PROG Holdings - Diluted Non-GAAP EPS
0.82
0.88
Conference Call and Webcast
The Company has scheduled a live webcast and conference call for
Wednesday, February 22nd, 2023, at 8:30 A.M. ET to discuss its
financial results for the fourth 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 "believe," "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, 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; (iv) changes in the
enforcement of existing laws and regulations and the adoption of
new laws and regulations that may unfavorably impact our
businesses; (ix) the risk that our capital allocation strategy,
including our current share repurchase program, will not be
effective at enhancing shareholder value; (x) our cost reduction
initiatives may not be adequate or may have unintended consequences
that could be disruptive to our businesses; (xi) 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; (xii) increased competition from traditional and
virtual lease-to-own competitors and also from competitors of our
Vive segment; (xiii) 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; (xiv) our increased level of indebtedness; (xv) 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 (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,
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 benefits we expect to realize from our
market leadership and financial strength, including our ability to
broaden our base of POS partners and to capitalize on increased
consumer demand when the current macroeconomic headwinds subside;
and (ii) our full-year and first-quarter 2023 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
Twelve Months Ended
December 31,
December 31,
2022
2021
2022
2021
REVENUES:
Lease Revenues and Fees
$
592,942
$
629,950
$
2,523,785
$
2,619,005
Interest and Fees on Loans Receivable
19,155
16,593
74,041
58,915
612,097
646,543
2,597,826
2,677,920
COSTS AND EXPENSES:
Depreciation of Lease Merchandise
399,017
439,438
1,757,730
1,820,010
Provision for Lease Merchandise
Write-offs
38,271
42,912
193,926
126,984
Operating Expenses
112,377
107,405
450,374
397,399
Impairment of Goodwill
—
—
10,151
—
549,665
589,755
2,412,181
2,344,393
OPERATING PROFIT
62,432
56,788
185,645
333,527
Interest Expense, Net
(8,701
)
(3,931
)
(37,401
)
(5,323
)
EARNINGS BEFORE INCOME TAX
EXPENSE
53,731
52,857
148,244
328,204
INCOME TAX EXPENSE
17,646
15,038
49,535
84,647
NET EARNINGS
$
36,085
$
37,819
$
98,709
$
243,557
EARNINGS PER SHARE
Basic
$
0.74
$
0.60
$
1.90
$
3.69
Assuming Dilution
$
0.73
$
0.59
$
1.90
$
3.67
WEIGHTED AVERAGE SHARES
OUTSTANDING:
Basic
49,029
63,319
51,921
66,026
Assuming Dilution
49,170
63,739
52,075
66,416
PROG Holdings, Inc.
Consolidated Balance
Sheets
(In thousands, except share
data)
December 31,
2022
December 31,
2021
ASSETS:
Cash and Cash Equivalents
$
131,880
$
170,159
Accounts Receivable (net of allowances of
$69,264 in 2022 and $71,233 in 2021)
64,521
66,270
Lease Merchandise (net of accumulated
depreciation and allowances of $467,355 in 2022 and $463,929 in
2021)
648,043
714,055
Loans Receivable (net of allowances and
unamortized fees of $53,635 in 2022 and $53,300 in 2021)
130,966
119,315
Property and Equipment, Net
23,852
25,648
Operating Lease Right-of-Use Assets
11,875
17,488
Goodwill
296,061
306,212
Other Intangibles, Net
114,411
137,305
Income Tax Receivable
18,864
14,352
Deferred Income Tax Assets
2,955
2,760
Prepaid Expenses and Other Assets
48,481
48,197
Total Assets
$
1,491,909
$
1,621,761
LIABILITIES & SHAREHOLDERS’
EQUITY:
Accounts Payable and Accrued Expenses
$
135,025
$
135,954
Deferred Income Tax Liabilities
137,261
146,265
Customer Deposits and Advance Payments
37,074
45,070
Operating Lease Liabilities
21,122
25,410
Debt
590,966
589,654
Total Liabilities
921,448
942,353
SHAREHOLDERS' EQUITY:
Common Stock, Par Value $0.50 Per Share:
Authorized: 225,000,000 Shares at December 31, 2022 and 2021;
Shares Issued: 82,078,654 at December 31, 2022 and 2021
41,039
41,039
Additional Paid-in Capital
338,814
332,244
Retained Earnings
1,154,235
1,055,526
1,534,088
1,428,809
Less: Treasury Shares at Cost
Common Stock: 34,044,102 Shares at
December 31, 2022 and 25,638,057 at December 31, 2021
(963,627
)
(749,401
)
Total Shareholders’ Equity
570,461
679,408
Total Liabilities & Shareholders’
Equity
$
1,491,909
$
1,621,761
PROG Holdings, Inc.
Consolidated Statements of
Cash Flows
(In thousands)
Year Ended December
31,
2022
2021
OPERATING ACTIVITIES:
Net Earnings
$
98,709
$
243,557
Adjustments to Reconcile Net Earnings to
Cash Provided by Operating Activities:
Depreciation of Lease Merchandise
1,757,730
1,820,010
Other Depreciation and Amortization
33,851
33,258
Provisions for Accounts Receivable and
Loan Losses
417,496
242,412
Stock-Based Compensation
17,521
21,349
Deferred Income Taxes
(9,199
)
15,729
Impairment of Goodwill and Other
Assets
10,151
—
Non-Cash Lease Expense
(1,674
)
974
Other Changes, Net
(7,164
)
(7,561
)
Changes in Operating Assets and
Liabilities, Net of Effects of Acquisitions and Dispositions:
Additions to Lease Merchandise
(1,889,207
)
(2,054,467
)
Book Value of Lease Merchandise Sold or
Disposed
197,489
130,665
Accounts Receivable
(374,515
)
(229,703
)
Prepaid Expenses and Other Assets
68
(7,879
)
Income Tax Receivable and Payable
(6,007
)
(29,753
)
Operating Lease Right-of-Use Assets and
Liabilities
2,999
(1,955
)
Accounts Payable and Accrued Expenses
2,227
70,820
Customer Deposits and Advance Payments
(7,996
)
(1,495
)
Cash Provided by Operating Activities
242,479
245,961
INVESTING ACTIVITIES:
Investments in Loans Receivable
(203,600
)
(182,204
)
Proceeds from Loans Receivable
159,707
132,281
Outflows on Purchases of Property and
Equipment
(9,674
)
(9,555
)
Proceeds from Property and Equipment
27
78
Proceeds (Outflows) from Acquisitions of
Businesses and Customer Agreements
6
(22,766
)
Cash Used in Investing Activities
(53,534
)
(82,166
)
FINANCING ACTIVITIES:
Repayments on Revolving Facility, Net
—
(50,000
)
Proceeds from Debt
—
591,750
Acquisition of Treasury Stock
(223,598
)
(142,358
)
Tender Offer Shares Repurchased and
Retired
(274
)
(428,551
)
Issuance of Stock Under Stock Option
Plans
1,150
4,592
Shares Withheld for Tax Payments
(2,902
)
(5,123
)
Debt Issuance Costs
(1,600
)
(591
)
Cash Used in Financing Activities
(227,224
)
(30,281
)
(Decrease) Increase in Cash and Cash
Equivalents
(38,279
)
133,514
Cash and Cash Equivalents at Beginning of
Year
170,159
36,645
Cash and Cash Equivalents at End of
Year
$
131,880
$
170,159
Net Cash Paid During the Year:
Interest Expense
$
35,712
$
1,452
Income Taxes
$
62,172
$
53,602
PROG Holdings, Inc.
Quarterly Revenues by
Segment
(In thousands)
(Unaudited)
Three Months Ended
December 31, 2022
Progressive Leasing
Vive
Other
Consolidated Total
Lease Revenues and Fees
$
592,942
$
—
$
—
$
592,942
Interest and Fees on Loans Receivable
—
17,886
1,269
19,155
Total Revenues
$
592,942
$
17,886
$
1,269
$
612,097
(Unaudited)
Three Months Ended
December 31, 2021
Progressive Leasing
Vive
Other
Consolidated Total
Lease Revenues and Fees
$
629,950
$
—
$
—
$
629,950
Interest and Fees on Loans Receivable
—
16,308
285
16,593
Total Revenues
$
629,950
$
16,308
$
285
$
646,543
PROG Holdings, Inc.
Annual Revenues by
Segment
(In thousands)
Twelve Months Ended
December 31, 2022
Progressive Leasing
Vive
Other
Consolidated Total
Lease Revenues and Fees
$
2,523,785
$
—
$
—
$
2,523,785
Interest and Fees on Loans Receivable
—
70,911
3,130
74,041
Total Revenues
$
2,523,785
$
70,911
$
3,130
$
2,597,826
Twelve Months Ended
December 31, 2021
Progressive Leasing
Vive
Other
Consolidated Total
Lease Revenues and Fees
$
2,619,005
$
—
$
—
$
2,619,005
Interest and Fees on Loans Receivable
—
58,462
453
58,915
Total Revenues
$
2,619,005
$
58,462
$
453
$
2,677,920
PROG Holdings, Inc.
Gross Merchandise Volume by
Quarter
(In thousands)
(Unaudited)
Three Months Ended December
31,
2022
2021
Progressive Leasing
$
540,913
$
634,654
Vive
40,417
42,455
Other
26,192
5,996
Total
$
607,522
$
683,105
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 twelve months
ended December 31, 2022, full year 2023 and first quarter 2023
outlook exclude intangible amortization expense, restructuring
expenses, impairment of goodwill, 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 and twelve months
ended December 31, 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 twelve
months ended December 31, 2022, full year 2023 and first quarter
2023 outlook exclude stock-based compensation expense,
restructuring expenses, and impairment of goodwill. Adjusted EBITDA
for the three and twelve months ended December 31, 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 twelve months
ended 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
Twelve Months Ended
Mar 31,
Jun 30,
Sept 30,
Dec 31,
Dec 31,
2022
Net Earnings
$
27,135
$
19,484
$
16,005
$
36,085
$
98,709
Add: Intangible Amortization Expense
5,724
5,723
5,724
5,723
22,894
Add: Restructuring Expense
—
4,328
4,673
—
9,001
Add: Impairment of Goodwill
—
—
10,151
—
10,151
Less: Tax Impact of Adjustments(1)
(1,488
)
(2,613
)
(2,703
)
(1,488
)
(8,292
)
Add: Accrued Interest on FTC Settlement
Uncertain Tax Position
539
647
755
972
2,913
Non-GAAP Net Earnings
$
31,910
$
27,569
$
34,605
$
41,292
$
135,376
Earnings Per Share Assuming Dilution
$
0.49
$
0.37
$
0.32
$
0.73
$
1.90
Add: Intangible Amortization Expense
0.10
0.11
0.11
0.12
0.44
Add: Restructuring Expense
—
0.08
0.09
—
0.17
Add: Impairment of Goodwill
—
—
0.20
—
0.19
Less: Tax Impact of Adjustments(1)
(0.03
)
(0.05
)
(0.05
)
(0.03
)
(0.16
)
Add: Accrued Interest on FTC Settlement
Uncertain Tax Position
0.01
0.01
0.01
0.02
0.06
Non-GAAP Earnings Per Share Assuming
Dilution(2)
$
0.57
$
0.52
$
0.68
$
0.84
$
2.60
Weighted Average Shares Outstanding
Assuming Dilution
55,706
52,961
50,547
49,170
52,075
(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 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
Twelve Months Ended
Mar 31,
Jun 30,
Sept 30,
Dec 31,
Dec 31,
2021
Net Earnings
$
79,488
$
68,837
$
57,413
$
37,819
$
243,557
Add: Intangible Amortization Expense
5,421
5,421
5,723
5,724
22,289
Add: Transaction Expense
—
561
—
—
561
Less: Tax Impact of Adjustments(1)
(1,409
)
(1,555
)
(1,488
)
(1,488
)
(5,940
)
Add: Accrued Interest on FTC Settlement
Uncertain Tax Position
—
—
1,040
350
1,390
Non-GAAP Net Earnings
$
83,500
$
73,264
$
62,688
$
42,405
$
261,857
Earnings Per Share Assuming Dilution
$
1.16
$
1.02
$
0.86
$
0.59
$
3.67
Add: Intangible Amortization Expense
0.08
0.08
0.09
0.09
0.34
Add: Transaction Expense
—
0.01
—
—
0.01
Less: Tax Impact of Adjustments(1)
(0.02
)
(0.02
)
(0.02
)
(0.02
)
(0.09
)
Add: Accrued Interest on FTC Settlement
Uncertain Tax Position
—
—
0.02
0.01
0.02
Non-GAAP Earnings Per Share Assuming
Dilution(2)
$
1.22
$
1.09
$
0.94
$
0.67
$
3.94
Weighted Average Shares Outstanding
Assuming Dilution
68,260
67,329
66,385
63,739
66,416
(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
December 31, 2022
Progressive Leasing
Vive
Other
Consolidated Total
Net Earnings
$
36,085
Income Tax Expense(1)
17,646
Earnings (Loss) Before Income Tax
Expense
61,187
$
41
$
(7,497
)
53,731
Interest Expense
8,590
111
—
8,701
Depreciation
2,283
199
200
2,682
Amortization
5,420
—
303
5,723
EBITDA
77,480
351
(6,994
)
70,837
Stock-Based Compensation
2,925
100
566
3,591
Adjusted EBITDA
80,405
$
451
$
(6,428
)
$
74,428
(1)
Taxes are calculated on a consolidated
basis and are not identifiable by Company Segment.
(Unaudited)
Three Months Ended
December 31, 2021
Progressive Leasing
Vive
Other
Consolidated Total
Net Earnings
$
37,819
Income Tax Expense(1)
15,038
Earnings (Loss) Before Income Tax
Expense
$
50,998
$
8,092
$
(6,233
)
52,857
Interest Expense
3,788
143
—
3,931
Depreciation
2,825
224
29
3,078
Amortization
5,421
—
303
5,724
EBITDA
63,032
8,459
(5,901
)
65,590
Stock-Based Compensation
3,327
78
3,141
6,546
Adjusted EBITDA
$
66,359
$
8,537
$
(2,760
)
$
72,136
(1)
Taxes are calculated on a consolidated
basis and are not identifiable by Company Segment.
PROG Holdings, Inc.
Non-GAAP Financial
Information
Twelve Month Segment
EBITDA
(In thousands)
Twelve Months Ended
December 31, 2022
Progressive Leasing
Vive
Other
Consolidated Total
Net Earnings
$
98,709
Income Tax Expense(1)
49,535
Earnings (Loss) Before Income Tax
Expense
$
174,143
$
9,195
$
(35,094
)
148,244
Interest Expense
37,003
398
—
37,401
Depreciation
9,691
795
471
10,957
Amortization
21,683
—
1,211
22,894
EBITDA
242,520
10,388
(33,412
)
219,496
Stock-Based Compensation
12,633
391
4,497
17,521
Restructuring Expense
8,343
658
—
9,001
Impairment of Goodwill
—
—
10,151
10,151
Adjusted EBITDA
$
263,496
$
11,437
$
(18,764
)
$
256,169
(1)
Taxes are calculated on a consolidated
basis and are not identifiable by Company Segment.
Twelve Months Ended
December 31, 2021
Progressive Leasing
Vive
Other
Consolidated Total
Net Earnings
$
243,557
Income Tax Expense(1)
84,647
Earnings (Loss) Before Income Tax
Expense
$
319,126
$
20,223
$
(11,145
)
328,204
Interest Expense
4,850
473
—
5,323
Depreciation
10,078
849
42
10,969
Amortization
21,684
—
605
22,289
EBITDA
355,738
21,545
(10,498
)
366,785
Stock-Based Compensation
14,919
287
6,143
21,349
Transaction Expense
561
—
—
561
Adjusted EBITDA
$
371,218
$
21,832
$
(4,355
)
$
388,695
(1)
Taxes are calculated on a consolidated
basis and are not identifiable by Company Segment.
PROG Holdings, Inc.
Non-GAAP Financial
Information
Reconciliation of 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 (Loss) 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 March 31, 2023 Outlook for Adjusted EBITDA
(In thousands)
Three Months Ended March 31, 2023
Outlook
Consolidated Total
Estimated Net Earnings
$34,500 - $37,500
Income Tax Expense(1)
15,500 - 16,500
Projected Earnings (Loss) Before Income
Tax Expense
50,000 - 54,000
Interest Expense
9,000
Depreciation
2,000
Amortization
6,000
Projected EBITDA
67,000 - 71,000
Stock-Based Compensation
5,000 - 6,000
Projected Adjusted EBITDA
$72,000 - $77,000
(1)
Taxes are calculated on a consolidated
basis and are not identifiable by Company segments.
PROG Holdings, Inc.
Reconciliation of 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(1)
0.48
0.48
Add: Projected Interest on FTC Settlement
Uncertain Tax Position
0.06
0.06
Subtract: Tax Effect on Non-GAAP
Adjustments
(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 March 31, 2023 Outlook for Earnings Per Share
Assuming Dilution to Non-GAAP
Earnings Per Share Assuming Dilution
Three Months Ended March 31,
2023
Low
High
Projected Earnings Per Share Assuming
Dilution
$
0.71
$
0.77
Add: Projected Intangible Amortization
Expense(1)
0.12
0.12
Add: Projected Interest on FTC Settlement
Uncertain Tax Position
0.02
0.02
Subtract: Tax Effect on Non-GAAP
Adjustments
(0.03
)
(0.03
)
Projected Non-GAAP Earnings Per Share
Assuming Dilution(2)
$
0.82
$
0.88
(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/20230222005345/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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