PROG (US:PRG)2024-10-23 13:26Revenue and Earnings - The company reported revenues of $606.1 million for Q3 2024, a 4.0% increase from $582.9 million in Q3 2023[86]. - Lease revenues and fees increased by 3.3% to $582,551,000 compared to $564,183,000 in the same period last year[92]. - Net earnings surged to $83,962,000, a significant increase from $35,012,000 in the same quarter of 2023[92]. - Total revenues for the nine months ended September 30, 2024, were $1,840,176, a 0.5% increase from $1,830,863 in the same period of 2023[100]. - Net earnings increased by 16.2% to $139,702, up from $120,263 in the prior year[100]. Gross Merchandise Volume (GMV) - Gross Merchandise Volume (GMV) for Progressive Leasing increased by $47.5 million (11.6%) to $456.7 million, while Vive's GMV rose by $3.5 million (10.0%) to $38.8 million compared to Q3 2023[87]. - Total GMV for the company reached $557.5 million, reflecting a 20.1% increase from $464.0 million in the same quarter last year[87]. - The increase in Progressive Leasing revenues was primarily due to an 11.6% increase in gross merchandise volume compared to the same quarter in 2023[93]. Customer Metrics - Active customer count for Progressive Leasing grew to 848,000, up from 820,000 in the prior year, driven by strategic initiatives and tightening credit supply[89]. - E-commerce channels contributed 16.6% of Progressive Leasing's GMV in Q3 2024, up from 14.8% in Q3 2023[87]. Operating Performance - Earnings before income taxes decreased to $41.8 million in Q3 2024, down from $48.1 million in Q3 2023, primarily due to higher provisions for lease merchandise write-offs and loan losses[86]. - Operating profit decreased by 10.3% to $49,231,000, down from $54,884,000 in the prior year[92]. - Operating profit decreased by 23.9% to $144,726 from $190,259 in the same period last year[100]. Costs and Expenses - The company incurred $0.1 million and $0.3 million in costs related to a cybersecurity incident for Q3 2024 and year-to-date, respectively, totaling $3.2 million since the incident occurred[84]. - Total operating expenses rose by 1.8% to $111,108,000 from $109,183,000 year-over-year[95]. - Personnel costs decreased by 9.6% to $42,260,000, down from $46,729,000 in the same quarter last year[95]. - Provision for lease merchandise write-offs increased by $7,770,000, representing a 21.0% rise compared to the previous year[92]. - Restructuring expenses rose significantly by $18.9 million due to additional restructuring activities during the nine months ended September 30, 2024[104]. Tax and Income - The effective income tax rate was (100.6)% for the three months ended September 30, 2024, compared to 27.2% for the same period in 2023[99]. - Income tax benefit for the nine months ended September 30, 2024 was $17.9 million, compared to an expense of $47.4 million in the prior year, resulting in an effective tax rate of (14.7)% versus 28.3% in 2023[109]. Cash Flow and Investments - Cash and cash equivalents increased by $66.3 million to $221.7 million as of September 30, 2024[111]. - Cash provided by operating activities was $223.0 million for the nine months ended September 30, 2024, down from $292.5 million in the same period in 2023, a decrease of $69.5 million[114]. - Cash used in investing activities increased to $35.6 million from $18.8 million year-over-year, driven by a $143.1 million increase in cash investments in loans receivable[115]. - Cash used in financing activities was $121.1 million, including $98.2 million for stock repurchases and $15.4 million in dividends[116]. Shareholder Returns - The company repurchased 2,620,562 shares for $98.2 million during the nine months ended September 30, 2024, with remaining authorization for an additional $401.8 million[118]. - Aggregate dividend payments during the nine months ended September 30, 2024 totaled $15.4 million, with a quarterly cash dividend of $0.12 per share declared on August 8, 2024[119]. Debt and Commitments - As of September 30, 2024, the company had $600.0 million in indebtedness and $350.0 million available under the Revolving Facility, with no outstanding balance[120]. - Unfunded lending commitments through the Vive business totaled approximately $498.7 million as of September 30, 2024, down from $523.9 million at the end of 2023[124].