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PROG Holdings Reports Second Quarter 2021 Results

07/29/2021
  • Progressive Leasing GMV of $506 million, up 25.2%
  • E-commerce GMV grew 274% to 13.0% of Progressive Leasing GMV
  • Consolidated Revenues of $660 million, up 10.1%
  • Diluted EPS of $1.02; Non-GAAP Diluted EPS of $1.09, up 18.5%
  • Consolidated earnings before taxes of $68.8 million; Adjusted EBITDA of $104.9 million, up 42.7%

SALT LAKE CITY--(BUSINESS WIRE)-- PROG Holdings, Inc. (NYSE:PRG), the fintech holding company for Progressive Leasing, a leading provider of e-commerce, app-based, and in-store lease-to-own solutions, Vive Financial, a provider of omnichannel second-look revolving credit solutions, and Four Technologies, a provider of Buy Now, Pay Later solutions, today announced financial results for the second quarter ended June 30, 2021.

“I'm pleased to report exceptional financial results for the period, driven by a 25% increase in Progressive Leasing's GMV, strong customer payment performance, and a return to growth in our portfolio," said Steve Michaels, President and Chief Executive Officer of PROG Holdings. “Our Progressive Leasing segment delivered record second quarter results in GMV, revenue, Adjusted EBITDA, and earnings before taxes. We also expanded our fintech offerings with the acquisition of Buy Now, Pay Later provider Four Technologies as part of our strategy to grow our ecosystem of flexible and transparent consumer financial products. As we enter the second half of the year, we are encouraged by the opportunity to serve more of our significant addressable market."

Financial Highlights

Consolidated revenues for the second quarter of 2021 were $660.0 million, an increase of 10.1% from the same period in 2020. The increase was primarily due to growth of key large national partners and e-commerce penetration, and from continued strong customer payment performance across both the Progressive Leasing and Vive Financial businesses. Progressive Leasing's GMV increased 25.2% to $506 million compared with the same period in 2020, with e-commerce GMV growing 274% year-over-year.

The provision for lease merchandise write-offs at Progressive Leasing was 4.8% of lease revenues in the second quarter of 2021, compared with 6.1% in the same period of 2020. Low levels of delinquencies and strong customer payment performance benefited our provision for write-offs in the period.

The Company reported net earnings from continuing operations for the second quarter of 2021 of $68.8 million compared with $59.0 million in the prior year period. Adjusted EBITDA for the second quarter of 2021 was $104.9 million compared with $73.5 million for the same period in 2020, an increase of $31.4 million, or 42.7%. As a percentage of revenues, Adjusted EBITDA was 15.9% in the second quarter of 2021 compared with 12.3% for the same period in 2020. The increases in net earnings from continuing operations and adjusted EBITDA were primarily driven by the Company’s increased revenues and improvements in our provision for write-offs.

Diluted earnings per share from continuing operations for the second quarter of 2021 were $1.02 compared with $0.87 in the year ago period. On a non-GAAP basis, diluted earnings per share from continuing operations were $1.09 in the first quarter of 2021 compared with $0.92 for the same quarter in 2020.

Liquidity and Capital Allocation

PROG Holdings ended the second quarter of 2021 with cash of $137.6 million and debt of $50 million. The Company repurchased $49.1 million of its stock in the period at an average price per share of $53.84, leaving $223 million available under its $300 million repurchase authorization. The company utilized $23 million of cash to purchase Four Technologies in the second quarter.

The Company expects to repurchase additional shares under its $300 million program from time to time, subject to its capital plan, market conditions, and other factors. The timing and amount of any further repurchases under the program will be determined by management. The Company is not obligated to acquire any specific number of shares, and the program may be suspended or discontinued at any time.

Outlook

The Company is increasing its full year 2021 consolidated outlook for Adjusted EBITDA to a range of $390 million to $405 million, up from the previous range of $380 million to $400 million, due to better-than-expected portfolio performance. Non-GAAP diluted EPS is expected to be between $3.90 and $4.10, up from a range of $3.80 and $4.05, while GAAP diluted EPS is expected to be between $3.66 and $3.86, up from a range of $3.56 and $3.81.

Conference Call and Webcast

The Company has scheduled a live webcast and conference call for Thursday, July 29, 2021, at 8:30 A.M. ET to discuss its financial results for the second quarter of 2021. To access the live webcast, visit the Company's investor relations website, https://investor.progholdings.com/. To join the conference call via telephone, dial 877-270-2148 and request to join the PROG Holdings, Inc. call. International participants without internet access can join the conference call by dialing 412-902-6510 and requesting to join the PROG Holdings, Inc. call. The webcast will be archived for playback on the investor relations website following the event.

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, 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.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995:

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 “strategy to”, “expects”, "outlook", and similar forward-looking terminology. These risks and uncertainties include factors such as (i) the impact of the COVID-19 pandemic and related measures taken by governmental or regulatory authorities to combat the pandemic, including the impact of the pandemic and such measures on: (a) demand for the lease-to-own products offered by our Progressive Leasing segment, (b) Progressive Leasing’s 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 point-of-sale partners being able to obtain the merchandise its 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; (ii) changes in the enforcement of existing laws and regulations and the adoption of new laws and regulations that may unfavorably impact our businesses; (iii) the effects on our business and reputation resulting from Progressives Leasing’s announced settlement and related consent order with the FTC, including the risk of losing existing POS partners or being unable to establish new relationships with additional POS partners, and of any follow-on regulatory and/or civil litigation arising therefrom; (iv) 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; (v) increased competition from traditional and virtual lease-to-own competitors and also from competitors of our Vive segment; (vi) increases in lease merchandise write-offs and the provision for returns and uncollectible renewal payments for Progressive Leasing, especially in light of the COVID-19 pandemic, and for loan losses, with respect to our Vive segment; (vii) the possibility that the operational, strategic and shareholder value creation opportunities expected from the spin-off of the Company’s Aaron’s Business segment may not be achieved in a timely manner, or at all; (viii) 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 lending-related laws and regulations that apply to its business; (ix) the effects of any increased expenses or unanticipated liabilities incurred as a result of, or due to activities related to, our acquisition of Four; (x) Four’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 (xi) 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, 2020, which was filed with the Securities and Exchange Commission on February 26, 2021. Statements in this press release that are “forward-looking” include without limitation statements about (i) our strategy to grow our ecosystem of consumer financial products; (ii) our ability to serve more of our addressable market for our offerings; (iii) our expectation to repurchase additional shares under our Board-authorized $300 million repurchase program; and (iv) our increased outlook for our full-year 2021 Adjusted EBITDA, Non-GAAP Earnings Per Share and GAAP Earnings Per Share performance. 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 (Loss)
(In thousands, except per share data)

 

 

(Unaudited)
Three Months Ended

 

(Unaudited)
Six Months Ended

 

June 30,

 

June 30,

 

 

2021

2020

 

2021

2020

Revenues:

 

 

 

 

 

 

Lease Revenues and Fees

 

$

646,048

 

$

589,749

 

 

$

1,354,030

 

$

1,248,283

 

Interest and Fees on Loans Receivable

 

13,923

 

9,415

 

 

26,942

 

19,322

 

Total

 

659,971

 

599,164

 

 

1,380,972

 

1,267,605

 

 

 

 

 

 

 

 

Costs and Expenses:

 

 

 

 

 

 

Depreciation of Lease Merchandise

 

439,658

 

420,731

 

 

944,715

 

884,649

 

Provision for Lease Merchandise Write-offs

 

31,258

 

36,151

 

 

49,898

 

91,865

 

Operating Expenses

 

96,745

 

82,518

 

 

187,941

 

181,502

 

Total

 

567,661

 

539,400

 

 

1,182,554

 

1,158,016

 

Operating Profit

 

92,310

 

59,764

 

 

198,418

 

109,589

 

Interest Expense

 

(436)

 

 

 

(948)

 

 

Earnings Before Income Tax Expense from Continuing Operations

 

91,874

 

59,764

 

 

197,470

 

109,589

 

Income Tax Expense (Benefit)

 

23,037

 

767

 

 

49,145

 

(7,090)

 

Net Earnings from Continuing Operations

 

68,837

 

58,997

 

 

148,325

 

116,679

 

Earnings (Loss) from Discontinued Operations, Net of Income Tax

 

 

9,380

 

 

 

(328,307)

 

Net Earnings (Loss)

 

$

68,837

 

$

68,377

 

 

$

148,325

 

$

(211,628)

 

 

 

 

 

 

 

 

Basic Earnings (Loss) per Share:

 

 

 

 

 

 

Continuing Operations

 

$

1.03

 

$

0.88

 

 

$

2.20

 

$

1.74

 

Discontinued Operations

 

 

0.14

 

 

 

(4.90)

 

Total Basic Earnings (Loss) per Share

 

$

1.03

 

$

1.02

 

 

$

2.20

 

$

(3.16)

 

Diluted Earnings (Loss) per Share:

 

 

 

 

 

 

Continuing Operations

 

$

1.02

 

$

0.87

 

 

$

2.19

 

$

1.72

 

Discontinued Operations

 

 

0.14

 

 

 

(4.85)

 

Total Diluted Earnings (Loss) per Share

 

$

1.02

 

$

1.01

 

 

$

2.19

 

$

(3.13)

 

 

 

 

 

 

 

 

Weighted Average Shares Outstanding

 

67,011

 

67,097

 

 

67,368

 

66,959

 

Weighted Average Shares Outstanding Assuming Dilution

 

67,329

 

67,523

 

 

67,792

 

67,693

 

PROG Holdings, Inc.
Consolidated Balance Sheets
(In thousands, except share data)

 

 

(Unaudited)
June 30, 2021

 

December 31, 2020

ASSETS:

 

 

 

 

Cash and Cash Equivalents

 

$

137,549

 

 

 

$

36,645

 

 

Accounts Receivable (net of allowances of $48,459 in 2021 and $56,364 in 2020)

 

57,074

 

 

 

61,254

 

 

Lease Merchandise (net of accumulated depreciation and allowances of $416,700 in 2021 and $409,307 in 2020)

 

587,730

 

 

 

610,263

 

 

Loans Receivable (net of allowances and unamortized fees of $57,976 in 2021 and $52,274 in 2020)

 

103,055

 

 

 

79,148

 

 

Property, Plant and Equipment, Net

 

26,738

 

 

 

26,705

 

 

Operating Lease Right-of-Use Assets

 

18,765

 

 

 

20,613

 

 

Goodwill

 

306,627

 

 

 

288,801

 

 

Other Intangibles, Net

 

148,752

 

 

 

154,421

 

 

Prepaid Expenses and Other Assets

 

39,630

 

 

 

39,554

 

 

Total Assets

 

$

1,425,920

 

 

 

$

1,317,404

 

 

LIABILITIES & SHAREHOLDERS’ EQUITY:

 

 

 

 

Accounts Payable and Accrued Expenses

 

$

102,041

 

 

 

$

78,249

 

 

Deferred Income Tax Liability

 

139,214

 

 

 

126,938

 

 

Customer Deposits and Advance Payments

 

44,093

 

 

 

46,565

 

 

Operating Lease Liabilities

 

27,237

 

 

 

29,516

 

 

Debt

 

50,000

 

 

 

50,000

 

 

Total Liabilities

 

362,585

 

 

 

331,268

 

 

SHAREHOLDERS' EQUITY:

 

 

 

 

Common Stock, Par Value $0.50 Per Share: Authorized: 225,000,000 Shares at June 30, 2021 and December 2020; Shares Issued: 90,752,123 at June 30, 2021 and December 31, 2020

 

45,376

 

 

 

45,376

 

 

Additional Paid-in Capital

 

318,911

 

 

 

318,263

 

 

Retained Earnings

 

1,384,703

 

 

 

1,236,378

 

 

 

 

 

 

 

Less: Treasury Shares at Cost

 

 

 

 

Common Stock: 24,252,222 Shares at June 30, 2021 and 23,029,434 at December 31, 2020

 

(685,655

)

 

 

(613,881

)

 

Total Shareholders’ Equity

 

1,063,335

 

 

 

986,136

 

 

Total Liabilities & Shareholders’ Equity

 

$

1,425,920

 

 

 

$

1,317,404

 

 

PROG Holdings, Inc.
Consolidated Statements of Cash Flows
(In thousands)

 

Six Months Ended
June 30,

 

2021

 

 

2020

 

OPERATING ACTIVITIES:

 

 

 

Net Earnings (Loss)

$

148,325

 

 

 

$

(211,628

)

 

Adjustments to Reconcile Net Earnings (Loss) to Cash Provided by Operating Activities:

 

 

 

Depreciation of Lease Merchandise

944,715

 

 

 

1,144,958

 

 

Other Depreciation and Amortization

14,247

 

 

 

50,154

 

 

Provisions for Accounts Receivable and Loan Losses

87,114

 

 

 

174,737

 

 

Stock-Based Compensation

8,137

 

 

 

12,487

 

 

Deferred Income Taxes

11,001

 

 

 

(73,656

)

 

Impairment of Goodwill and Other Assets

 

 

 

468,634

 

 

Non-Cash Lease Expense

464

 

 

 

50,638

 

 

Other Changes, Net

(1,180

)

 

 

5,109

 

 

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

 

 

 

Additions to Lease Merchandise

(974,271

)

 

 

(1,032,977

)

 

Book Value of Lease Merchandise Sold or Disposed

52,089

 

 

 

201,058

 

 

Accounts Receivable

(72,070

)

 

 

(134,467

)

 

Prepaid Expenses and Other Assets

106

 

 

 

(4,711

)

 

Income Tax Receivable

(20

)

 

 

(38,797

)

 

Operating Lease Right-of-Use Assets and Liabilities

(895

)

 

 

(53,544

)

 

Accounts Payable and Accrued Expenses

23,552

 

 

 

(19,713

)

 

Accrued Regulatory Expense

 

 

 

(175,000

)

 

Customer Deposits and Advance Payments

(2,473

)

 

 

(2,527

)

 

Cash Provided by Operating Activities

238,841

 

 

 

360,755

 

 

INVESTING ACTIVITIES:

 

 

 

Investments in Loans Receivable

(94,129

)

 

 

(39,986

)

 

Proceeds from Loans Receivable

62,938

 

 

 

32,248

 

 

Outflows on Purchases of Property, Plant and Equipment

(4,781

)

 

 

(33,885

)

 

Proceeds from Disposition of Property, Plant, and Equipment

45

 

 

 

2,220

 

 

Outflows on Acquisitions of Businesses and Customer Agreements. Net of Cash Acquired

(22,749

)

 

 

(1,209

)

 

Proceeds from Dispositions of Businesses and Customer Agreements, Net of Cash Disposed

 

 

 

359

 

 

Cash Used in Investing Activities

(58,676

)

 

 

(40,253

)

 

FINANCING ACTIVITIES:

 

 

 

Proceeds from Debt

 

 

 

5,625

 

 

Repayments on Debt

 

 

 

(60,748

)

 

Dividends Paid

 

 

(5,351

)

 

Acquisition of Treasury Stock

(77,196

)

 

 

 

 

Issuance of Stock Under Stock Option Plans

2,856

 

 

 

2,250

 

 

Shares Withheld for Tax Payments

(4,921

)

 

 

(5,877

)

 

Debt Issuance Costs

 

 

 

(1,020

)

 

Cash Used in Financing Activities

(79,261

)

 

 

(65,121

)

 

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

 

 

 

(79

)

 

Increase in Cash and Cash Equivalents

100,904

 

 

 

255,302

 

 

Cash and Cash Equivalents at Beginning of Period

36,645

 

 

 

57,755

 

 

Cash and Cash Equivalents at End of Period

$

137,549

 

 

 

$

313,057

 

 

Net Cash Paid During the Period

 

 

 

Interest

$

435

 

 

 

$

6,722

 

 

Income Taxes

$

23,539

 

 

 

$

1,438

 

 

PROG Holdings, Inc.
Quarterly Revenues by Segment
(In thousands)

 

Unaudited

 

Three Months Ended

 

June 30, 2021

 

Progressive Leasing

Vive

Consolidated Total

Lease Revenues and Fees

$

646,048

 

$

 

$

646,048

 

Interest and Fees on Loans Receivable

 

13,923

 

13,923

 

Total Revenues

$

646,048

 

$

13,923

 

$

659,971

 

 

Unaudited

 

Three Months Ended

 

June 30, 2020

 

Progressive Leasing

Vive

Consolidated Total

Lease Revenues and Fees

$

589,749

 

$

 

$

589,749

 

Interest and Fees on Loans Receivable

 

9,415

 

9,415

 

Total Revenues

$

589,749

 

$

9,415

 

$

599,164

 

PROG Holdings, Inc.
Six Months Revenues by Segment
(In thousands)

 

Unaudited

 

Six Months Ended

 

June 30, 2021

 

Progressive Leasing

Vive

Consolidated Total

Lease Revenues and Fees

$

1,354,030

 

$

 

$

1,354,030

 

Interest and Fees on Loans Receivable

 

26,942

 

26,942

 

Total Revenues

$

1,354,030

 

$

26,942

 

$

1,380,972

 

 

Unaudited

 

Six Months Ended

 

June 30, 2020

 

Progressive Leasing

Vive

Consolidated Total

Lease Revenues and Fees

$

1,248,283

 

$

 

$

1,248,283

 

Interest and Fees on Loans Receivable

 

19,322

 

19,322

 

Total Revenues

$

1,248,283

 

$

19,322

 

$

1,267,605

 

Use of Non-GAAP Financial Information:

Non-GAAP net earnings from continuing operations, non-GAAP diluted earnings from continuing operations 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 from continuing operations and non-GAAP diluted earnings from continuing operations per share for the three and six months ended June 30, 2021 and the Company's full year 2021 outlook, exclude intangible amortization expense and acquisition related transaction costs. Non-GAAP net earnings from continuing operations and non-GAAP diluted earnings from continuing operations per share for the three and six months ended June 30, 2020 exclude intangible amortization expense, restructuring expenses, and income tax benefits from our revaluation of net operating loss carrybacks resulting from the CARES Act. The amounts for these after-tax non-GAAP adjustments, which are tax effected using our statutory tax rate, can be found in the reconciliation of net earnings from continuing operations and earnings from continuing operations per share assuming dilution to non-GAAP net earnings from continuing operations and earnings from continuing operations 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, plant and equipment, amortization of intangible assets and income taxes. Adjusted EBITDA for the three and six months ended June 30, 2021 and 2020 also excludes stock-based compensation expense, restructuring expenses, and acquisition related transaction costs. The amounts for these pre-tax non-GAAP adjustments can be found in the quarterly segment EBITDA tables in this press release. Adjusted EBITDA for the Company's full year 2021 outlook is calculated as projected earnings before interest expense, interest income, depreciation on property, plant and equipment, amortization of intangible assets and income taxes. Adjusted EBITDA for the Company's full year 2021 outlook also excludes stock-based compensation expense and the acquisition related transaction costs.

Management believes that non-GAAP net earnings from continuing operations, non-GAAP diluted earnings from continuing operations 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.

Adjusted EBITDA, non-GAAP net earnings from continuing operations and non-GAAP diluted earnings from continuing operations 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 from continuing operations and diluted earnings from continuing operations per share and the GAAP revenues and earnings from continuing operations 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 from continuing operations, non-GAAP diluted earnings from continuing operations 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 from Continuing
Operations to Non-GAAP Net Earnings and Earnings Per Share Assuming Dilution from
Continuing Operations
(In thousands, except per share amounts)

 

Unaudited

 

Three Months Ended

Six Months Ended

 

June 30,

June 30,

 

2021

2020

2021

2020

Net Earnings from Continuing Operations

$

68,837

 

$

58,997

 

$

148,325

 

$

116,679

 

Add: Intangible Amortization Expense

5,421

 

5,566

 

10,842

 

11,132

 

Add: Transaction Expense

561

 

 

561

 

 

Add: Restructuring Expenses, net

 

238

 

 

238

 

Less: Tax impact of adjustments (1)

(1,555

)

(1,509

)

(2,964

)

(2,956

)

Less: NOL Carryback Revaluation

 

(1,350

)

 

(35,540

)

Non-GAAP Net Earnings from Continuing Operations

$

73,264

 

$

61,942

 

$

156,764

 

$

89,553

 

 

 

 

 

 

Earnings from Continuing Operations Per Share Assuming Dilution

$

1.02

 

$

0.87

 

$

2.19

 

$

1.72

 

Add: Intangible Amortization Expense

0.08

 

0.08

 

0.16

 

0.16

 

Add: Transaction Expense

0.01

 

 

0.01

 

 

Less: Tax impact of adjustments (1)

(0.02

)

(0.02

)

(0.04

)

(0.04

)

Less: NOL Carryback Revaluation

 

(0.02

)

 

(0.53

)

Non-GAAP Earnings from Continuing Operations Per Share Assuming Dilution(2)

$

1.09

 

$

0.92

 

$

2.31

 

$

1.32

 

 

 

 

 

 

Weighted Average Shares Outstanding Assuming Dilution

67,329

 

67,523

 

67,792

 

67,693

 

(1)

Adjustments are tax-effected using an assumed statutory tax rate of 26.0%.

(2)

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

PROG Holdings Inc.
Non-GAAP Financial Information
Quarterly Segment EBITDA
(In thousands)

 

Unaudited

 

Three Months Ended

 

June 30, 2021

 

Progressive Leasing

Vive

Consolidated Total

Net Earnings from Continuing Operations

 

 

$

68,837

 

Income Taxes(1)

 

 

23,037

 

Earnings from Continuing Operations Before Income Taxes

$

87,521

 

$

4,353

 

91,874

 

Interest Expense

320

 

116

 

436

 

Depreciation

2,414

 

198

 

2,612

 

Amortization

5,421

 

 

5,421

 

EBITDA

95,676

 

4,667

 

100,343

 

Stock-Based Compensation

3,942

 

31

 

3,973

 

Transaction Expense

561

 

 

561

 

Adjusted EBITDA

$

100,179

 

$

4,698

 

$

104,877

 

(1)

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

 

Unaudited

 

Three Months Ended

 

June 30, 2020

 

Progressive Leasing

Vive

Unallocated
Corporate Expenses

Consolidated Total

Net Earnings from Continuing Operations

 

 

 

$

58,997

 

Income Taxes(1)

 

 

 

767

 

Earnings (Loss) from Continuing Operations Before Income Taxes

$

63,113

 

$

1,626

 

$

(4,975

)

 

59,764

 

Depreciation

2,179

 

210

 

 

 

2,389

 

Amortization

5,421

 

145

 

 

 

5,566

 

EBITDA

70,713

 

1,981

 

(4,975

)

 

67,719

 

Stock-Based Compensation(2)

3,270

 

96

 

2,187

 

 

5,553

 

Restructuring Expenses, Net

 

 

238

 

 

238

 

Adjusted EBITDA

$

73,983

 

$

2,077

 

$

(2,550

)

 

$

73,510

 

(1)

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

(2)

2020 quarterly Adjusted EBITDA metrics have been updated to add-back Stock-based compensation to conform to management's 2021 definition of Adjusted EBITDA.

PROG Holdings Inc.
Non-GAAP Financial Information
Six Month Segment EBITDA
(In thousands)

 

Unaudited

 

Six Months Ended

 

June 30, 2021

 

Progressive Leasing

Vive

Consolidated Total

Net Earnings from Continuing Operations

 

 

$

148,325

 

Income Taxes(1)

 

 

49,145

 

Earnings from Continuing Operations Before Income Taxes

$

191,693

 

$

5,777

 

197,470

 

Interest Expense

755

 

193

 

948

 

Depreciation

4,626

 

385

 

5,011

 

Amortization

10,842

 

 

10,842

 

EBITDA

207,916

 

6,355

 

214,271

 

Stock-Based Compensation

8,005

 

131

 

8,136

 

Transaction Expense

561

 

 

561

 

Adjusted EBITDA

$

216,482

 

$

6,486

 

$

222,968

 

(1)

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

 

Unaudited

 

Six Months Ended

 

June 30, 2020

 

Progressive Leasing

Vive

Unallocated
Corporate Expenses

Consolidated Total

Net Earnings from Continuing Operations

 

 

 

$

116,679

 

Income Taxes(1)

 

 

 

(7,090

)

Earnings (Loss) from Continuing Operations Before Income Taxes

$

125,820

 

$

(5,526

)

 

$

(10,705

)

109,589

 

Depreciation

4,300

 

427

 

 

 

4,727

 

Amortization

10,842

 

290

 

 

 

11,132

 

EBITDA

140,962

 

(4,809

)

 

(10,705

)

125,448

 

Stock-Based Compensation(2)

6,006

 

180

 

 

4,229

 

10,415

 

Restructuring Expenses, Net

 

 

 

238

 

238

 

Adjusted EBITDA

$

146,968

 

$

(4,629

)

 

$

(6,238

)

$

136,101

 

(1)

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

(2)

2020 quarterly Adjusted EBITDA metrics have been updated to add-back Stock-based compensation to conform to management's 2021 definition of Adjusted EBITDA

PROG Holdings Inc.
Gross Merchandise Volume by Quarter
(In thousands)

 

Three Months Ended

 

Year Ended

 

Three Months Ended

 

Mar 31,

Jun 30,

Sept 30,

Dec 31,

 

Dec 31,

 

Mar 31,

Jun 30,

 

2020

 

2020

 

2021

Progressive Leasing

$

462,025

 

$

404,018

 

$

448,843

 

$

536,422

 

 

$

1,851,308

 

 

$

510,046

 

$

505,971

 

Vive

25,376

 

21,536

 

37,883

 

45,956

 

 

130,751

 

 

55,898

 

51,701

 

Total

$

487,401

 

$

425,554

 

$

486,726

 

$

582,378

 

 

$

1,982,059

 

 

$

565,944

 

$

557,672

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Full Year 2021 Outlook for Adjusted EBITDA
(In thousands)

 

Full Year 2021 Ranges

 

Consolidated

Estimated Net Earnings

$251,000 - $259,000

Taxes

83,000 - 88,000

Projected Earnings Before Taxes

334,000 -347,000

Interest Expense

1,700

Depreciation

11,600

Amortization

21,700

Projected EBITDA

369,000 - 382,000

Stock-Based Compensation

21,000 - 23,000

Projected Adjusted EBITDA

$390,000 - $405,000

Reconciliation of Full Year 2021 Outlook for Earnings Per Share
Assuming Dilution to Non-GAAP Earnings Per Share Assuming Dilution

 

Full Year 2021 Range

 

Low

High

Projected Earnings Per Share Assuming Dilution

$

3.66

 

$

3.86

 

Add Projected Intangible Amortization Expense

0.24

 

0.24

 

Projected Non-GAAP Earnings Per Share Assuming Dilution

$

3.90

 

$

4.10

 

 

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

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

Source: PROG Holdings, Inc.

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