PROG (US:PRG)2024-07-24 13:21Revenue and GMV Performance - The company reported revenues of $592.2 million for Q2 2024, relatively flat compared to $592.8 million in Q2 2023[124]. - Progressive Leasing's Gross Merchandise Volume (GMV) increased by $33.3 million to $454.5 million, a 7.9% increase year-over-year[125]. - Vive's GMV decreased by $4.1 million to $35.8 million, a decline of 10.3% compared to the same period in 2023[125]. - Total GMV for the company increased by $70.7 million to $546.4 million, representing a 14.9% increase year-over-year[125]. - Total revenues for the three months ended June 30, 2024, were $592,161, a decrease of 0.1% from $592,846 in the same period of 2023[136]. - Lease revenues and fees for the second quarter of 2024 were $570,516, down 0.6% from $574,839 in the prior year[136]. - Total revenues for the six months ended June 30, 2024, were $1,234,031,000, a slight decrease from $1,247,986,000 in the same period of 2023[146]. - Lease revenues and fees for Progressive Leasing were $1,191,066,000, down from $1,211,921,000 year-over-year[146]. Customer Metrics - The active customer count for Progressive Leasing was 834, slightly down from 843 in the previous year[127]. - The active customer count for Vive decreased to 85 from 90 year-over-year[127]. Earnings and Expenses - Earnings before income taxes decreased to $48.3 million, down from $52.0 million in Q2 2023, a decline of 7.1%[130]. - Operating expenses for the three months ended June 30, 2024, were $107,901, a slight increase of 0.2% from $107,710 in the same period of 2023[138]. - Earnings before income tax expense for the three months ended June 30, 2024, were $48,339, a decrease of 7.1% from $52,014 in the same period of 2023[142]. - Net interest expense for the three months ended June 30, 2024, was $7,339, an increase of 0.8% from $7,283 in the same period of 2023[141]. - Operating expenses increased by 10.5% to $235,242,000 compared to $212,969,000 in the prior year[147]. Tax and Provisions - The effective income tax rate for the three months ended June 30, 2024, was 30.1%, compared to 28.4% in the same period of 2023[143]. - The provision for lease merchandise write-offs increased to 7.7% of lease revenues in Q2 2024, up from 7.1% in Q2 2023[139]. - The provision for loan losses increased by 36.9% to $12,035 in Q2 2024, compared to $8,791 in Q2 2023[138]. - The provision for loan losses rose by 31.9% to $23,084,000, driven by growth in other strategic operations[147]. - The effective tax rate increased to 30.2% for the six months ended June 30, 2024, compared to 28.7% in the same period of 2023[150]. Cash Flow and Investments - Cash provided by operating activities decreased to $191,100,000 from $205,400,000 year-over-year[154]. - Cash used in investing activities increased to $17,800,000 from $10,600,000, primarily due to an $81,800,000 increase in cash investments in loans receivable[159]. - Cash used in financing activities was $78,600,000, compared to $73,800,000 in the same period last year, mainly for stock repurchases and dividends[160]. - The company repurchased 1,810,562 shares for $61,200,000 during the six months ended June 30, 2024[161]. Debt and Financial Compliance - The Company has a $350.0 million senior revolving credit facility with no outstanding balance as of June 30, 2024, and $350.0 million available for borrowings[163]. - As of June 30, 2024, the Company was in compliance with financial covenants requiring a total net debt to EBITDA ratio of no more than 2.50:1.00 and consolidated interest coverage of no less than 3.00:1.00[163]. - The Company issued $600 million in senior unsecured notes due 2029 at a fixed annual interest rate of 6.00%, with interest payable semi-annually[165]. - The Company had no outstanding borrowings under its Revolving Facility as of June 30, 2024, and a hypothetical 1.0% change in interest rates would not affect interest expense[170]. Internal Controls and Compliance - The Company’s disclosure controls and procedures were evaluated as effective as of the end of the reporting period[172]. - There were no changes in the Company's internal control over financial reporting that materially affected its operations during the three and six months ended June 30, 2024[173].