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PROG (PRG) - 2024 Q3 - Quarterly Results
PRGPROG (PRG)2024-10-23 12:21

Financial Performance - Consolidated revenues for Q3 2024 were 606.1million,a4.0606.1 million, a 4.0% increase from Q3 2023[3]. - Net earnings for the quarter were 84.0 million, significantly up from 35.0millionintheprioryear,primarilyduetoa35.0 million in the prior year, primarily due to a 53.6 million non-cash tax benefit[4]. - Adjusted EBITDA for Q3 2024 was 63.5million,representing10.563.5 million, representing 10.5% of revenues, down from 12.3% in the same period last year[4]. - Diluted EPS for Q3 2024 was 1.94, compared to 0.76inthesameperiodlastyear;non−GAAPdilutedEPSwas0.76 in the same period last year; non-GAAP diluted EPS was 0.77, down from 0.90[5].−NetearningsfortheninemonthsendedSeptember30,2024,were0.90[5]. - Net earnings for the nine months ended September 30, 2024, were 139,702, up 16.2% from 120,263inthesameperiodof2023[15].−BasicearningspershareforQ32024were120,263 in the same period of 2023[15]. - Basic earnings per share for Q3 2024 were 1.99, significantly higher than 0.77inQ32023[13].−ConsolidatedtotalnetearningsfortheninemonthsendedSeptember30,2024,were0.77 in Q3 2023[13]. - Consolidated total net earnings for the nine months ended September 30, 2024, were 139,702,000, compared to 120,263,000forthesameperiodin2023,representingayear−over−yearincreaseofapproximately16.2120,263,000 for the same period in 2023, representing a year-over-year increase of approximately 16.2%[31][32]. Revenue and Growth Metrics - Progressive Leasing's GMV reached 456.7 million, reflecting an 11.6% year-over-year growth[6]. - Total revenues for the three months ended September 30, 2024, reached 606,145thousand,anincreasefrom606,145 thousand, an increase from 582,877 thousand in the same period of 2023, representing a growth of approximately 4.3%[16][17]. - Lease revenues and fees for Q3 2024 reached 582,551,anincreaseof3.3582,551, an increase of 3.3% from 564,183 in Q3 2023[13]. - Interest and fees on loans receivable totaled 23,594forQ32024,comparedto23,594 for Q3 2024, compared to 18,694 in Q3 2023, reflecting a growth of 26.5%[13]. - The company experienced a gross merchandise volume of 557,464thousandforthethreemonthsendedSeptember30,2024,comparedto557,464 thousand for the three months ended September 30, 2024, compared to 464,044 thousand in the same period of 2023, indicating a growth of approximately 20.1%[21]. Cash and Debt Management - The company ended Q3 2024 with cash of 221.7millionandgrossdebtof221.7 million and gross debt of 600 million[7]. - Cash and cash equivalents increased to 221,726asofSeptember30,2024,comparedto221,726 as of September 30, 2024, compared to 155,416 at the end of 2023, marking a growth of 42.5%[14]. - Total liabilities decreased to 815,533asofSeptember30,2024,comparedto815,533 as of September 30, 2024, compared to 899,924 at the end of 2023, a reduction of 9.4%[14]. - The company repurchased 37.0millionofitsstockatanaveragepriceof37.0 million of its stock at an average price of 45.69 per share, with 401.8millionremainingunderitsrepurchaseprogram[7].FutureOutlookandProjections−Thefullyear2024revenueoutlookwasrevisedtoarangeof401.8 million remaining under its repurchase program[7]. Future Outlook and Projections - The full year 2024 revenue outlook was revised to a range of 2,440,000 to 2,460,000,withnetearningsexpectedbetween2,460,000, with net earnings expected between 165,500 and 170,500[8].−Thecompanyanticipatescontinuedfocusonmarketexpansionandnewproductdevelopmentintheupcomingquarters,aimingtoenhancerevenuestreamsandcustomerengagement[22].−TheprojectedadjustedEBITDAforthefullyear2024isestimatedtobebetween170,500[8]. - The company anticipates continued focus on market expansion and new product development in the upcoming quarters, aiming to enhance revenue streams and customer engagement[22]. - The projected adjusted EBITDA for the full year 2024 is estimated to be between 270,000,000 and 275,000,000,reflectingapotentialdeclinefrompreviousestimates[33][35].−Thecompanyexpectsnetearningsforthefullyear2024torangefrom275,000,000, reflecting a potential decline from previous estimates[33][35]. - The company expects net earnings for the full year 2024 to range from 165,500,000 to 170,500,000,withprojectedearningsbeforeincometaxexpensesof170,500,000, with projected earnings before income tax expenses of 162,500,000 to 165,500,000[33].−Theprojectednon−GAAPearningspershareforthefullyear2024isexpectedtobebetween165,500,000[33]. - The projected non-GAAP earnings per share for the full year 2024 is expected to be between 3.30 and 3.40,reflectingadjustmentsforintangibleamortizationandrestructuringexpenses[38][39].OperationalMetricsandExpenses−Theprovisionforleasemerchandisewrite−offswas7.73.40, reflecting adjustments for intangible amortization and restructuring expenses[38][39]. Operational Metrics and Expenses - The provision for lease merchandise write-offs was 7.7%, within the targeted annual range of 6%-8%[6]. - The company reported a provision for lease merchandise write-offs of 44,736 in Q3 2024, compared to 36,966inQ32023,indicatinganincreaseof21.036,966 in Q3 2023, indicating an increase of 21.0%[13]. - Stock-based compensation for the nine months ended September 30, 2024, was 21,588,000, compared to 19,081,000forthesameperiodin2023,showinganincreaseofapproximately13.219,081,000 for the same period in 2023, showing an increase of approximately 13.2%[31][32]. - Restructuring expenses for the nine months ended September 30, 2024, totaled 20,906,000, compared to 1,958,000forthesameperiodin2023,indicatingasignificantincrease[31][32].−Interestexpenseforthefullyear2024isprojectedtobebetween1,958,000 for the same period in 2023, indicating a significant increase[31][32]. - Interest expense for the full year 2024 is projected to be between 31,000,000 and 32,000,000,withdepreciationandamortizationexpectedtototal32,000,000, with depreciation and amortization expected to total 9,500,000 and 18,000,000,respectively[33][35].Non−GAAPFinancialMeasures−Non−GAAPnetearningsforthethreemonthsendedSeptember30,2024,were18,000,000, respectively[33][35]. Non-GAAP Financial Measures - Non-GAAP net earnings for the three months ended September 30, 2024, were 33,412 thousand, compared to 41,676thousandinthesameperiodof2023,reflectingadecreaseofapproximately19.841,676 thousand in the same period of 2023, reflecting a decrease of approximately 19.8%[28]. - Adjusted EBITDA for the nine months ended September 30, 2024, was 208,346,000, compared to $236,455,000 for the same period in 2023, indicating a decrease of about 11.9%[31][32]. - Management emphasizes the importance of non-GAAP financial measures in assessing the company's performance and making strategic decisions, highlighting their relevance in the industry[24][25].