Upbound (US:UPBD)2024-10-31 11:45Financial Performance - Consolidated revenue for Q3 2024 was $1,068.9 million, representing a 9.2% year-over-year increase[5] - Adjusted EBITDA for Q3 2024 was $116.9 million, up 10.3% year-over-year, with an adjusted EBITDA margin of 10.9%[10] - Net income for Q3 2024 reached $30.9 million, an increase of $26.5 million compared to the previous year[5] - Acima's GMV grew by 13.0% year-over-year in Q3 2024, with revenues of $566.2 million, reflecting a 19.1% increase year-over-year[11] - Rent-A-Center reported revenue of $458.7 million in Q3 2024, a 1.1% year-over-year increase, with same-store sales up 2.6%[14] - Year-over-year revenue growth was reported at both Acima and Rent-A-Center (RAC), with Acima experiencing four consecutive quarters of double-digit GMV growth[19] - Total revenue for the three months ended September 30, 2024, was $1,068.9 million, an increase from $877.8 million in the same period last year, representing a growth of 21.8%[29] Cost and Expenses - Total cost of revenues was $392.2 million, up from $315.8 million, reflecting an increase of 24.2%[28] - Operating expenses totaled $110.0 million, compared to $101.3 million, marking an increase of 6.8%[28] - Total cost of revenues was $557.8 million, compared to $315.8 million in the previous year, indicating an increase of 76.6%[29] - Operating expenses totaled $412.9 million, up from $253.5 million, which is a rise of 62.9% year-over-year[29] - Non-labor operating expenses were $196.0 million, an increase from $122.9 million, representing a growth of 59.4%[29] Cash Flow and Debt Management - The company reduced debt by $81 million in Q3 2024 and ended the quarter with an undrawn ABL revolver[6] - Net cash provided by operating activities was $106.2 million, an increase of $28.2 million compared to Q3 2023[6] - The net leverage ratio decreased to 2.6x at the end of Q3 2024, down from 2.8x at the end of Q2 2024, with net debt reduced to $1.2 billion[18] - Free cash flow for the nine months ended September 30, 2024, was $88.3 million, compared to $63.2 million for the same period in 2023[27] Strategic Initiatives - Full year 2024 guidance indicates strong performance, positioning the company to meet its targets[6] - Strategic priorities for 2024 include expanding market share and enhancing digital capabilities to improve customer experience[9] - The company anticipates continued growth in revenue driven by new product launches and market expansion strategies[28] - The company is focusing on market expansion and new product development to drive future growth[29] Shareholder Returns - The company distributed a quarterly dividend of $0.37 per share, amounting to an annualized total of $1.48[18] - Total liquidity exceeded $550 million, supporting strategic priorities including growth initiatives and opportunistic buybacks[18] Performance Metrics - Lease charge-offs for Acima were 9.2%, improving by 20 basis points year-over-year and 40 basis points sequentially[11] - The company reported a 90 basis points year-over-year improvement in RAC's net earnings margin and a 130 basis points improvement in EBITDA margin[19] - Adjusted diluted earnings per share guidance for FY 2024 is projected to be between $3.75 and $3.90, an increase from the previous guidance of $3.65 to $3.90[16] - Merchandise sales reached $123.3 million, compared to $26.7 million, showing a significant increase of 362.5%[28] - Installment sales were $14.4 million, up from $13.4 million, reflecting a growth of 7.5%[28] - Rentals and fees contributed $442.5 million, up from $417.3 million, indicating a growth of 6.0% year-over-year[28] - Franchise and royalty fees amounted to $5.9 million, consistent with the previous year, showing no growth[28]