PART I. FINANCIAL INFORMATION This section presents the company's unaudited condensed consolidated financial statements and management's analysis of financial condition and results of operations [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents PROG Holdings, Inc.'s unaudited condensed consolidated financial statements, detailing balance sheets, earnings, and cash flows, highlighting a notable decline in net earnings and a goodwill impairment [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's condensed consolidated balance sheets, detailing assets, liabilities, and equity as of September 30, 2022, and December 31, 2021 Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash and Cash Equivalents | $221,886 | $170,159 | | Lease Merchandise, Net | $566,148 | $714,055 | | Goodwill | $296,061 | $306,212 | | Total Assets | $1,491,491 | $1,621,761 | | **Liabilities & Equity** | | | | Debt | $590,642 | $589,654 | | Total Liabilities | $925,027 | $942,353 | | Total Shareholders' Equity | $566,464 | $679,408 | | Total Liabilities & Shareholders' Equity | $1,491,491 | $1,621,761 | [Condensed Consolidated Statements of Earnings](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) This section presents the company's condensed consolidated statements of earnings, comparing financial performance for the three and nine months ended September 30, 2022 and 2021 Condensed Consolidated Statements of Earnings Highlights (in thousands, except per share data) | Metric | Q3 2022 | Q3 2021 | Nine Months 2022 | Nine Months 2021 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $625,821 | $650,405 | $1,985,729 | $2,031,377 | | Operating Profit | $36,811 | $78,321 | $123,213 | $276,739 | | Net Earnings | $16,005 | $57,413 | $62,624 | $205,738 | | Diluted EPS | $0.32 | $0.86 | $1.18 | $3.06 | - The company recorded a **goodwill impairment charge of $10,151 thousand** in the third quarter and nine months ended September 30, 2022, with no similar charge in the prior year periods[12](index=12&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the company's condensed consolidated statements of cash flows, detailing cash movements from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | Cash Provided by Operating Activities | $283,150 | $294,890 | | Cash Used in Investing Activities | ($39,949) | ($72,524) | | Cash Used in Financing Activities | ($191,474) | ($130,223) | | **Increase in Cash and Cash Equivalents** | **$51,727** | **$92,143** | - The company spent **$187.4 million** on treasury stock acquisitions in the first nine months of 2022, a significant increase from **$128.2 million** in the same period of 2021[15](index=15&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, explaining significant accounting policies, segment information, and material events - The company operates through two reportable segments: Progressive Leasing (**lease-to-own solutions**) and Vive Financial (**second-look revolving credit products**). It also owns Four Technologies, a **Buy Now, Pay Later company**, which is not a reportable segment[17](index=17&type=chunk)[20](index=20&type=chunk) - A **goodwill impairment test was triggered** for the Four reporting unit as of September 30, 2022, due to **declining valuations in the Buy Now, Pay Later industry**, **increased forecasted losses**, and **projected negative cash flows**. This resulted in a **$10.2 million impairment charge**[59](index=59&type=chunk)[60](index=60&type=chunk) - In Q2 and Q3 2022, the company initiated **restructuring activities to reduce expenses**, resulting in **charges of $4.7 million for Q3 and $9.0 million for the nine months ended September 30, 2022**. These costs were primarily for **employee severance and impairment of right-of-use assets**[103](index=103&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the impact of high inflation on customer performance and GMV, leading to tightened lease decisioning, revenue decline, and reduced earnings, despite a solid liquidity position - The company is operating in a **challenging macro environment** where **high inflation** is pressuring customers, leading to **higher payment delinquencies and write-offs**. In response, the company has **tightened its lease decisioning criteria**, which has **adversely impacted Gross Merchandise Volume (GMV) production**[111](index=111&type=chunk) Gross Merchandise Volume (GMV) (in thousands) | Segment | Q3 2022 | Q3 2021 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Progressive Leasing | $437,417 | $493,277 | ($55,860) | (11.3)% | | Vive | $47,967 | $49,085 | ($1,118) | (2.3)% | | Other | $15,786 | $2,655 | $13,131 | nmf | | **Total GMV** | **$501,170** | **$545,017** | **($43,847)** | **(8.0)%** | Active Customer Count (as of September 30) | Segment | 2022 | 2021 | | :--- | :--- | :--- | | Progressive Leasing | 915,000 | 936,000 | | Vive | 92,000 | 87,000 | | Other | 27,000 | 8,000 | | **Total Active Customer Count** | **1,034,000** | **1,031,000** | [Results of Operations – Three months ended September 30, 2022 and 2021](index=27&type=section&id=Results%20of%20Operations%20%E2%80%93%20Three%20months%20ended%20September%2030%2C%202022%20and%202021) This section analyzes the company's financial performance for the third quarter, highlighting revenue, expense, and earnings trends compared to the prior year - **Total revenues for Q3 2022 decreased by 3.8% to $625.8 million**. The decline was driven by a **4.5% drop in Lease Revenues and Fees**, primarily due to a **higher provision for uncollectible renewal payments ($104.3 million in Q3 22 vs. $61.5 million in Q3 21)**. This was partially offset by a **25.1% increase in Interest and Fees on Loans Receivable**[126](index=126&type=chunk)[127](index=127&type=chunk) - **Operating expenses increased by 10.5% to $112.7 million** in Q3 2022. This was mainly due to a **211% increase in the provision for loan losses to $12.0 million**, a **new $4.7 million restructuring expense**, and a **$10.2 million goodwill impairment charge**[126](index=126&type=chunk)[129](index=129&type=chunk)[130](index=130&type=chunk) - The **provision for lease merchandise write-offs increased by 27.4% to $43.5 million** in Q3 2022, reflecting **higher customer payment delinquencies** compared to the stronger payment activity in Q3 2021[126](index=126&type=chunk)[132](index=132&type=chunk) - **Earnings before income tax expense fell 64.9% to $27.3 million**. The decline was most pronounced in the Progressive Leasing segment, which saw its **pre-tax earnings fall by 43.1%**. The 'Other' category reported a **loss of $17.5 million**, which includes the **$10.2 million goodwill impairment for Four**[135](index=135&type=chunk) [Results of Operations – Nine Months Ended September 30, 2022 and 2021](index=30&type=section&id=Results%20of%20Operations%20%E2%80%93%20Nine%20Months%20Ended%20September%2030%2C%202022%20and%202021) This section analyzes the company's financial performance for the nine-month period, detailing revenue, expense, and earnings trends compared to the prior year - For the nine months ended Sep 30, 2022, **total revenues decreased 2.2% to $1.99 billion**. The **provision for uncollectible renewal payments**, which reduces revenue, **more than doubled to $289.8 million from $137.8 million** in the prior year period[138](index=138&type=chunk)[139](index=139&type=chunk) - **Operating expenses for the nine-month period rose 16.6% to $338.0 million**, driven by **higher personnel costs**, a **93.5% increase in the provision for loan losses**, a **new $9.0 million restructuring expense**, and the **$10.2 million goodwill impairment**[138](index=138&type=chunk)[141](index=141&type=chunk) - The **provision for lease merchandise write-offs increased by 85.1% to $155.7 million** for the nine-month period, reflecting **higher customer delinquencies and write-offs** compared to the prior year[138](index=138&type=chunk)[148](index=148&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash position, debt, and available credit facilities, along with cash flow activities and share repurchase programs - As of September 30, 2022, the company had **$221.9 million in cash**, **$350.0 million available under its Revolving Facility**, and **$600.0 million of indebtedness from its Senior Notes**[156](index=156&type=chunk) - **Cash from operating activities decreased slightly to $283.2 million** for the nine months ended Sep 30, 2022, from **$294.9 million** in the prior year period. The decrease was driven by **reduced customer payment activity** and **higher interest payments on Senior Notes**, partially offset by **lower purchases of lease merchandise**[157](index=157&type=chunk) - The company **repurchased 6,687,618 shares for $187.4 million** during the first nine months of 2022. As of September 30, 2022, **$373.5 million remained authorized for future share repurchases**[160](index=160&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate exposure on its variable-rate Revolving Facility, though no outstanding borrowings mitigate immediate impact - The company is exposed to **interest rate risk** through its **variable-rate Revolving Facility**, which is indexed to LIBOR or the prime rate. As of September 30, 2022, there were **no outstanding borrowings under this facility**[174](index=174&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of the end of the reporting period, the CEO and CFO concluded that the company's **disclosure controls and procedures were effective**[178](index=178&type=chunk) - **No changes occurred in the company's internal control over financial reporting** during the quarter that have **materially affected**, or are **reasonably likely to materially affect**, these controls[179](index=179&type=chunk) PART II. OTHER INFORMATION This section covers legal proceedings, risk factors, equity sales, and exhibits, providing additional context beyond financial statements [Item 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings in the ordinary course of business, but does not anticipate a material adverse impact on its financial position - The company is involved in various **legal proceedings**, but does not currently believe any will have a **material adverse impact on its business or financial position**. For further details, the report refers to Note 4 of the financial statements[180](index=180&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) There are no updates to the company's risk factors from those previously disclosed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2021 - The company reported **no updates to its risk factors** from the 2021 Annual Report[181](index=181&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's share repurchase activity for the third quarter of 2022 under its existing authorization Share Repurchase Activity for Q3 2022 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | July 2022 | 97,203 | $16.51 | | August 2022 | 290,549 | $18.97 | | September 2022 | 200,000 | $18.85 | | **Total** | **587,752** | | [Item 6. Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files - Lists the **exhibits filed with the report**, including **CEO/CFO certifications** (31.1, 31.2, 32.1, 32.2) and **XBRL data files**[187](index=187&type=chunk)

PROG Holdings Inc. (NYSE:PRG) Q2 2022 Results Conference Call July 27, 2022 8:30 AM ET Company Participants Brian Garner - CFO John Baugh - VP, IR Steve Michaels - President, CEO Conference Call Participants Alessandra Jimenez - Raymond James Anthony Chukumba - Loop Capital Brad Thomas - KeyBanc Capital Markets Hal Goetsch - Loop Capital Jason Haas - Bank of America Kyle Joseph - Jefferies Vincent Caintic - Stephens Operator Good morning and welcome to the PROG Holdings, Inc., Second Quarter 2022 Earnings ...

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED June 30, 2022 OR WASHINGTON, D.C. 20549 ________________________________ FORM 10-Q ________________________________ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION FOR THE TRANSITION PERIOD FROM TO Securities registered pursuant to Section 12(b) of the Act: Common Stock, $0.50 Par Value PRG New York St ...

Financial Data and Key Metrics Changes - Q1 consolidated revenues decreased by 1.5% year-over-year, amounting to $710.5 million compared to $721 million in the previous year [27] - Adjusted EBITDA for Q1 was $64.6 million, representing a margin of 9.1%, down from $118.1 million or 16.4% in the same period last year [27] - GAAP diluted EPS was $0.49, while non-GAAP EPS was $0.57 [28] Business Line Data and Key Metrics Changes - Progressive Leasing's revenue was $692.9 million, a 2.1% decrease from $708 million in the prior year [21] - The gross leased asset balance increased by 17.6%, which is expected to drive stronger revenue in the latter half of the year [13][22] - Write-offs for Progressive Leasing were $50.3 million, or 7.3% of revenue, compared to $18.6 million and 2.6% in the previous year [25] Market Data and Key Metrics Changes - Progressive Leasing's GMV declined by 1.1% year-over-year, with e-commerce GMV growing by 10% year-over-year, representing 15.9% of total GMV in Q1 [12] - The company anticipates that the macroeconomic environment will remain challenging but believes it can capture a larger share of the underserved market [18] Company Strategy and Development Direction - The company is focusing on several initiatives to increase GMV, including co-branded marketing campaigns and enhanced customer experience [11] - The management believes that the current economic environment presents an opportunity to capture a larger share of the market as consumers seek flexible payment solutions [18] - The company is committed to investing in technology and product development to enhance its offerings and maintain competitive advantage [67] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that Q1 results represent the low point for EBITDA margins and GMV growth for the year [11] - The company expects write-offs to remain within the targeted annual range of 6% to 8% for 2022 [15] - Management noted that the business has shown resilience in various economic cycles and anticipates growth opportunities in the current environment [18] Other Important Information - The company repurchased approximately $78.1 million of its common stock during Q1, with $482.8 million remaining under its $1 billion share repurchase program [29] - The company ended the quarter with $600 million in gross debt and $184 million in cash, resulting in a net leverage of approximately 1.2 times trailing 12-month adjusted EBITDA [28] Q&A Session Summary Question: Can you provide more details on the new e-commerce retail partner? - Management indicated that the new partner is Wayfair, which presents a significant opportunity for growth [59] Question: How do you expect the year to shape up, particularly for Q2? - Management expects Q2 to show improvement but noted that the most significant acceleration will occur in the back half of the year [49][53] Question: What are the implications of the tax refund season on results? - Management described the tax season as muted this year, with typical behaviors observed but difficult to separate from the impact of prior stimulus [85] Question: What percentage of customers are repeat customers? - Approximately 50% of leases originated in any given period are from repeat customers, an increase from the mid-30s percentage a few years ago [94]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ________________________________ FORM 10-Q ________________________________ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED March 31, 2022 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 1-39628 ________________________________ PROG HOLDINGS, INC. (Exact name of regis ...

Financial Data and Key Metrics Changes - PROG Holdings reported a consolidated revenue growth of 6.8% year-over-year for Q4, reaching $646.5 million, and a 7.8% increase for the full year 2021 [13][32] - Adjusted EBITDA for Q4 was $72.1 million, representing an adjusted EBITDA margin of 11.2%, down from 15.6% in the previous year [13][32] - The company ended 2021 with adjusted EBITDA of $388.7 million, a 13.9% increase over 2020, and an adjusted EBITDA margin of 14.5% [13][32] Business Line Data and Key Metrics Changes - The Progressive Leasing segment achieved GMV growth of 18.3% in Q4 and 15.8% for the year, with e-commerce GMV growing 45% in Q4 and 151% for the year [11][29] - Progressive Leasing's revenue grew 6% to $630 million in Q4, driven by portfolio growth, while the provision for write-offs was 6.8%, aligning with pre-pandemic norms [30][32] - Vive Financial segment reported record GMV revenue and adjusted EBITDA in 2021, with expected revenue growth driven by a higher loans receivable balance [21][22] Market Data and Key Metrics Changes - The company noted that GMV growth was primarily driven by large national POS partners, and they expect this trend to continue despite macroeconomic challenges [12][18] - The first quarter of 2022 has started slightly negative year-to-date compared to the same period last year, influenced by supply chain disruptions and inflation [17][18] Company Strategy and Development Direction - PROG Holdings aims to broaden its fintech ecosystem by developing innovative products and technologies, including the integration of Four Technologies for Buy Now, Pay Later solutions [10][23] - The company has authorized a $1 billion share repurchase program and returned significant capital to shareholders by repurchasing approximately 17% of its outstanding common stock [10][14] - The management team has been strengthened with seasoned executives and independent directors to enhance operational capabilities [16] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the macroeconomic environment, including supply chain disruptions, labor shortages, and inflation, which may create headwinds in the near term [17][24] - For 2022, the company forecasts revenue growth in the mid-to-high single digits for Progressive Leasing, with adjusted EBITDA margins expected to return to pre-pandemic levels [18][35] - Management remains optimistic about long-term growth opportunities, particularly in e-commerce and partnerships with retail partners [25][24] Other Important Information - The company reported a net cash position and plans to utilize its strong cash generation capabilities for capital allocation priorities, including share repurchases and potential M&A [14][28] - The company expects SG&A expenses to return to slightly higher than pre-pandemic levels due to investments in technology and increased compensation costs [20][60] Q&A Session Summary Question: Is the current shift in consumer behavior due to inflation or a result of previous stimulus spending? - Management indicated that the current environment is influenced by multiple factors, including inflation and the impact of COVID, but they expect improvement as the situation normalizes [39][40] Question: What is the outlook for the credit environment and its impact on customer behavior? - Management anticipates a normalization in credit performance, with higher write-offs expected, but they believe there will be a demand for point-of-sale payment options as the macro environment evolves [48][50] Question: How does the company view its cash flow generation and share repurchase strategy? - Management confirmed strong cash flow generation capabilities and indicated that they will continue to return cash to shareholders while maintaining a conservative leverage ratio [56][58] Question: What is the competitive landscape following recent industry consolidations? - Management noted that while competition remains strong, the consolidation may level the playing field and provide opportunities for PROG Holdings to capture market share [65][66] Question: How should investors connect GMV growth with reported revenue growth? - Management clarified that while there is a correlation, the growth in leased asset portfolios will have a more direct impact on revenue, and normalization of 90-day buyouts will also affect revenue trends [68][70]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Commission file Number. 1-39628 PROG HOLDINGS, INC. (Exact name of registrant as specified in its charter) Georgia 85-2484385 (State or other jurisdiction of in ...

PROG Holdings, Inc. (NYSE:PRG) Q3 2021 Earnings Conference Call November 3, 2021 8:30 AM ET Company Participants John Baugh - Vice President of Investor Relations Steve Michaels - Chief Executive Officer Brian Garner - Chief Financial Officer Conference Call Participants Anthony Chukumba - Loop Capital Kyle Joseph - Jefferies Jason Haas - Bank of America Bobby Griffin - Raymond James Brad Thomas - KeyBanc Capital Markets Vincent Caintic - Stephens Inc. Hal Goetsch - Loop Capital Markets Operator Good day an ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ________________________________ FORM 10-Q ________________________________ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2021 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 1-39628 ________________________________ Securities registered pursuant to Se ...

PROG Holdings, Inc. (NYSE:PRG) Q2 2021 Results Conference Call July 29, 2021 8:30 AM ET Company Participants John Baugh - Vice President of Investor Relations Steve Michaels - Chief Executive Officer Brian Garner - Chief Financial Officer Conference Call Participants Kyle Joseph - Jefferies Jason Haas - Bank of America Bradley Thomas - KeyBanc Capital Markets Bobby Griffin - Raymond James Michael Young - Truist Tim Vierengel - Northcoast Research Anthony Chukumba - Loop Capital Operator Good morning and wel ...