PROG (US:PRG)2025-04-23 12:16Financial Performance - Consolidated revenues for Q1 2025 were $684.1 million, a 6.6% increase from Q1 2024[4] - Net earnings for the quarter were $34.7 million, up from $22.0 million in the prior year[4] - Adjusted EBITDA for Q1 2025 was $70.3 million, representing 10.3% of revenues[4] - Net earnings for the three months ended March 31, 2025, increased to $34,718 thousand, up 58% from $21,966 thousand in the same period of 2024[20] - Total revenues for the three months ended March 31, 2025, reached $684,088 thousand, representing a 6.5% increase from $641,870 thousand in the prior year[22] - Cash provided by operating activities rose to $209,929 thousand for the three months ended March 31, 2025, compared to $135,733 thousand in the same period of 2024, an increase of 54.5%[20] - Non-GAAP net earnings for Q1 2025 were $37,665 thousand, compared to $40,641 thousand in Q1 2024, reflecting a decrease of 4.9%[31] - Non-GAAP diluted earnings per share for Q1 2025 were $0.90, slightly down from $0.91 in Q1 2024[31] - For the three months ended March 31, 2025, consolidated total net earnings were $34,718,000, compared to $21,966,000 for the same period in 2024, representing a year-over-year increase of 58%[34]. Market and Operational Metrics - Progressive Leasing's GMV was $402.0 million, down 4.0% compared to Q1 2024[6] - Four Technologies achieved GMV growth of 145.7% and recorded its first quarter of positive adjusted EBITDA[3] - Gross Merchandise Volume (GMV) for Progressive Leasing decreased to $401,962 thousand in Q1 2025 from $418,512 thousand in Q1 2024, a decline of 3.9%[24] Cash and Debt Management - The company ended Q1 2025 with cash of $213.3 million and gross debt of $600.0 million[7] - Cash and cash equivalents increased to $213,301 thousand at the end of Q1 2025, up from $95,655 thousand at the beginning of the period[20] - The company repurchased $26.1 million of its stock during the quarter, leaving $335.2 million of repurchase capacity[7] Outlook and Projections - The updated 2025 revenue outlook is between $2.425 billion and $2.5 billion, reflecting a downward revision due to macroeconomic challenges[9] - The projected diluted EPS for 2025 is revised to a range of $2.62 to $3.01[9] - The projected full year 2025 adjusted EBITDA range is estimated to be between $245,000,000 and $261,000,000, reflecting a strategic focus on growth despite challenges in certain segments[36]. - The projected diluted earnings per share for full year 2025 is estimated to be between $2.90 and $3.30, which includes adjustments for intangible amortization expenses[39]. - The company anticipates a projected net earnings range of $109,000,000 to $125,000,000 for the full year 2025, indicating a positive outlook for profitability[36]. Expenses and Liabilities - The provision for lease merchandise write-offs was 7.4%, within the targeted annual range of 6-8%[6] - Total liabilities decreased from $863,486 thousand as of December 31, 2024, to $815,465 thousand as of March 31, 2025, a reduction of approximately 5.6%[18] - Interest expense, net for the three months ended March 31, 2025, was $9,090,000, compared to $8,250,000 in the prior year, reflecting an increase of 10.2%[34][35]. - The company reported a restructuring expense of $6,000 for the three months ended March 31, 2025, compared to $18,014,000 in the same period of the previous year, showing a significant reduction in restructuring costs[34][35]. - The estimated income tax expense for the full year 2025 is projected to be between $45,000,000 and $49,000,000, which is a critical factor in the overall earnings forecast[36]. Risk Management - The company has reported costs related to a cybersecurity incident, net of insurance recoveries, amounting to $(24,000) for the three months ended March 31, 2025, highlighting ongoing challenges in risk management[34].