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PROG Holdings Reports First Quarter 2021 Results

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- Progressive Leasing GMV of $510 million, up 10.4%

- E-commerce 14.3% of GMV, up from 1.9% in Q1 2020

- Consolidated Revenues of $721 million, up 7.9%

- Diluted EPS of $1.16; Non-GAAP Diluted EPS $1.22, up 197.6%

- Consolidated earnings before taxes of $105.6 million; Adjusted EBITDA of $118.1 million, up 88.7%

- Company provides FY 2021 outlook; Diluted GAAP EPS of $3.56 to $3.81; Diluted Non-GAAP EPS of $3.80 to $4.05

SALT LAKE CITY, April 29, 2021 /PRNewswire/ — PROG Holdings, Inc. (NYSE:PRG), the fintech holding company for Progressive Leasing, a leading provider of in-store and e-commerce lease-to-own solutions, and Vive Financial, a provider of omnichannel second-look revolving credit solutions, announces financial results for the first quarter ended March 31, 2021. 

"Our first quarter results reflect the exceptional execution of our team and our point-of-sale retail partners in a challenging environment as we continue to add and scale partner relationships while increasing our e-commerce penetration," said Steve Michaels, President and Chief Executive Officer of PROG Holdings. "The Progressive Leasing segment delivered record first quarter results in revenue, gross merchandise volume (GMV), earnings before taxes, and adjusted EBITDA. Our portfolio performance exceeded our expectations as the continued financial strength of our consumer resulted in increased revenues and low write-offs in the period. We anticipate strong results for the remainder of 2021, building on Progressive's 10.4% GMV growth in the first quarter."  

Financial Highlights

Consolidated revenues for the first quarter of 2021 were $721.0 million, an increase of 7.9% from the same period in 2020. The increase was primarily driven by continued strong customer payment performance across both the Progressive Leasing and Vive Financial business segments, as well as elevated buyout activity in the period. Progressive Leasing's GMV increased 10.4% to $510 million compared with the same period in 2020, with 14.3% of the quarter's GMV generated from the Company's e-commerce channel, up from 1.9% in Q1 2020. GMV in the first quarter primarily benefited from the continued scale of national partners, increased penetration in e-commerce, and federal stimulus, and was partially offset by a delayed tax refund season and smaller average refunds.

The provision for lease merchandise write-offs was 2.6% of lease revenues in the first quarter of 2021 compared with 8.5% in the same period of 2020. Low levels of delinquencies and a more favorable outlook of consumer payment performance benefited our provision for write-offs reported in the period. Provisions for write-offs in the first quarter of 2020 reflect the recording of $16.1 million in Progressive Leasing reserves relating to the COVID-19 pandemic. The first quarter of 2021 results benefited by a $2.5 million release of COVID-19-related reserves.   

The Company reported net earnings from continuing operations for the first quarter of 2021 of $79.5 million compared with $57.7 million in the prior year period.

Adjusted EBITDA for the first quarter of 2021 was $118.1 million, compared with $62.6 million for the same period in 2020, an increase of $55.5 million, or 88.7%. As a percentage of revenues, adjusted EBITDA was 16.4% in the first quarter of 2021 compared with 9.4% for the same period in 2020. The increases in net earnings from continuing operations and adjusted EBITDA were primarily driven by the Company's increased revenues and improvements in our provision for write-offs.

Diluted earnings per share from continuing operations for the first quarter of 2021 were $1.16 compared with $0.85 in the year ago period. On a non-GAAP basis, diluted earnings per share from continuing operations were $1.22 in the first quarter of 2021 compared with $0.41 for the same quarter in 2020.

Liquidity and Capital Allocation

PROG Holdings ended the first quarter of 2021 with a cash position of $151.2 million and a balance of $50 million on its $350 million revolving credit facility. The Company repurchased $28.1 million of its stock in the period at an average price per share of $47.70, leaving $271.9 million available through its $300 million repurchase authorization. 

The Company expects to repurchase additional shares under its $300 million program from time to time, subject to its capital plan, market conditions and other factors. The timing and amount of any further repurchases under the program will be determined by management. The Company is not obligated to acquire any specific number of shares, and the program may be suspended or discontinued at any time.

2021 Outlook

The Company is providing the following outlook for its 2021 fiscal year. 


FY 2021 Outlook

(In thousands, except per share amounts)

Low

High




PROG Holdings - Total Revenues

$

2,700,000


$

2,775,000


PROG Holdings - Net Earnings

246,000


259,000


PROG Holdings - Adjusted EBITDA1

380,000


400,000


PROG Holdings - Diluted EPS

3.56


3.81


PROG Holdings - Diluted Non-GAAP EPS

3.80


4.05





Progressive Leasing - Total Revenues

2,645,000


2,710,000


Progressive Leasing - Earnings before taxes

328,000


345,000


Progressive Leasing - Adjusted EBITDA1

378,000


396,000





Vive - Total Revenues

55,000


65,000


Vive - Earnings before taxes


2,000


Vive - Adjusted EBITDA1

2,000


4,000




1

The FY 2021 Adjusted EBITDA outlook includes the add-back of stock-based compensation expense. See GAAP to Non-GAAP reconciliation below for further details.

Conference Call and Webcast

The Company has scheduled a live webcast and conference call for Thursday, April 29, 2021, at 8:30 A.M. ET to discuss its financial results for the first quarter of 2021. To access the live webcast, visit the Company's investor relations website, https://investor.progleasing.com/. To join the conference call via telephone, dial 877-270-2148 and request to join the PROG Holdings, Inc. call. International participants without internet access can join the conference call by dialing 412-902-6510 and requesting to join the PROG Holdings, Inc. call. The webcast will be archived for playback on the investor relations website following the event. 

About PROG Holdings, Inc.

PROG Holdings, Inc. (NYSE:PRG) is a fintech holding company headquartered in Salt Lake City, UT, that provides transparent and competitive payment options to credit challenged consumers. The Company owns Progressive Leasing, a leading provider of in-store, e-commerce, and app-based point-of-sale lease-to-own solutions, and Vive Financial, an omnichannel provider of second-look revolving credit products. Progressive Leasing has helped millions of consumers acquire furniture, appliances, jewelry, electronics, mattresses, cell phones, and other large-ticket products consumers need by utilizing a technology-based proprietary platform that provides instant decisioning results. Vive Financial offers consumers who may not qualify for traditional prime lending products a variety of second-look, revolving credit products originated through federally insured banks, including private label and Vive-branded credit cards. More information on PROG Holdings' companies can be found on their websites, https://progleasing.com and https://vivecard.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:
Statements in this news release regarding our business that are not historical facts are "forward-looking statements" that involve risks and uncertainties which could cause actual results to differ materially from those contained in the forward-looking statements. Such forward-looking statements generally can be identified by the use of forward-looking terminology, such as "anticipates", "continue", "expects", "expectation", "outlook", and similar terminology. These risks and uncertainties include factors such as (i) the impact of the COVID-19 pandemic and related measures taken by governmental or regulatory authorities to combat the pandemic, including the impact of the pandemic and such measures on: (a) demand for the lease-to-own products offered by our Progressive Leasing segment, (b) Progressive Leasing's POS partners and Vive's merchant partners, (c) Progressive Leasing's and Vive's customers, including their ability and willingness to satisfy their obligations under their lease agreements and loan agreements, respectively, (d) Progressive Leasing's point-of-sale partners being able to obtain the merchandise its customers need or desire, (e) our employees and labor needs, including our ability to adequately staff our operations, (f) our financial and operational performance, and (g) our liquidity; (ii) changes in the enforcement of existing laws and regulations and the adoption of new laws and regulations that may unfavorably impact our businesses; (iii) the effects on our business and reputation resulting from Progressives Leasing's announced settlement and related consent order with the FTC, including the risk of losing existing POS partners or being unable to establish new relationships with additional POS partners, and of any follow-on regulatory and/or civil litigation arising therefrom; (iv) other types of legal and regulatory proceedings and investigations, including those related to consumer protection, customer privacy, third party and employee fraud and information security; (v) increased competition from traditional and virtual lease-to-own competitors and also from competitors of our Vive segment; (vi) increases in lease merchandise write-offs and the provision for returns and uncollectible renewal payments for Progressive Leasing, especially in light of the COVID-19 pandemic, and for loan losses, with respect to our Vive segment; (vii) the possibility that the operational, strategic and shareholder value creation opportunities expected from the spin-off of the Company's Aaron's Business segment may not be achieved in a timely manner, or at all; (viii) Vive's business model differing significantly from Progressive Leasing's, which creates specific and unique risks for the Vive business, including Vive's reliance on two bank partners to issue its credit products and Vive's exposure to the unique regulatory risks associated with the lending-related laws and regulations that apply to its business; and (ix) the other risks and uncertainties discussed under "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020, which was filed with the Securities and Exchange Commission on February 26, 2021. Statements in this press release that are "forward-looking" include without limitation statements about (i) our ability to add new POS and e-commerce partner relationships and to increase the scale of those relationships; (ii) our ability to increase our penetration in the e-commerce market; (iii) the strength of our businesses during the ongoing economic uncertainty caused by the COVID pandemic; (iv) our expectations for growth in Progressive Leasing's gross merchandise volume and expanding our business with e-commerce partners; (v) our plans to repurchase shares under our Board-authorized $300 million repurchase program; and (vi) our outlook for our consolidated financial performance for our 2021 fiscal year. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as required by law, the Company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances after the date of this press release.

PROG Holdings, Inc.

Consolidated Statements of Earnings

(In thousands, except per share data)




(Unaudited)

Three Months Ended


March 31,



2021

2020

Revenues:




Lease Revenues and Fees


$

707,982


$

658,534


Interest and Fees on Loans Receivable


13,019


9,908


Total


721,001


668,442






Costs and Expenses:




Depreciation of Lease Merchandise


505,057


463,919


Provision for Lease Merchandise Write-offs


18,640


55,714


Operating Expenses


91,196


98,984


Total


614,893


618,617


Operating Profit


106,108


49,825


Interest Expense


(512)



Earnings Before Income Tax Expense from Continuing Operations


105,596


49,825


Income Tax Expense (Benefit)


26,108


(7,857)


Net Earnings from Continuing Operations


79,488


57,682


Loss from Discontinued Operations, Net of Income Tax



(337,687)


Net Earnings (Loss)


$

79,488


$

(280,005)






Basic Earnings (Loss) per Share:




Continuing Operations


$

1.17


$

0.86


Discontinued Operations



(5.05)


Total Basic Earnings (Loss) per Share


$

1.17


$

(4.19)


Diluted Earnings (Loss) per Share:




Continuing Operations


$

1.16


$

0.85


Discontinued Operations



(4.98)


Total Diluted Earnings (Loss) per Share


$

1.16


$

(4.13)






Weighted Average Shares Outstanding


67,730


66,822


Weighted Average Shares Outstanding Assuming Dilution


68,260


67,864


PROG Holdings, Inc.

Consolidated Balance Sheets

(In thousands, except share data)




(Unaudited)
March 31, 2021


December 31, 2020

ASSETS:





Cash and Cash Equivalents


$

151,151



$

36,645


Accounts Receivable (net of allowances of $47,757 in 2021 and $56,364 in 2020)


53,996



61,254


Lease Merchandise (net of accumulated depreciation and allowances of $376,517 in 2021 and $409,307 in 2020)


574,581



610,263


Loans Receivable (net of allowances and unamortized fees of $56,499 in 2021 and $52,274 in 2020)


91,368



79,148


Property, Plant and Equipment, Net


26,144



26,705


Operating Lease Right-of-Use Assets


19,691



20,613


Goodwill


288,801



288,801


Other Intangibles, Net


149,000



154,421


Prepaid Expenses and Other Assets


44,066



39,554


Total Assets


$

1,398,798



$

1,317,404


LIABILITIES & SHAREHOLDERS' EQUITY:





Accounts Payable and Accrued Expenses


$

105,146



$

78,249


Deferred Income Tax Liability


132,467



126,938


Customer Deposits and Advance Payments


45,806



46,565


Operating Lease Liabilities


28,423



29,516


Debt


50,000



50,000


Total Liabilities


361,842



331,268


SHAREHOLDERS' EQUITY:





Common Stock, Par Value $0.50 Per Share: Authorized: 225,000,000 Shares at March 31, 2021 and December 2020; Shares Issued: 90,752,123 at March 31, 2021 and December 31, 2020


45,376



45,376


Additional Paid-in Capital


314,026



318,263


Retained Earnings


1,315,866



1,236,378







Less: Treasury Shares at Cost





Common Stock: 23,402,427 Shares at March 31, 2021 and 23,029,434 at December 31, 2020


(638,312)



(613,881)


Total Shareholders' Equity


1,036,956



986,136


Total Liabilities & Shareholders' Equity


$

1,398,798



$

1,317,404


PROG Holdings, Inc.

Consolidated Statements of Cash Flows

(In thousands)



Three Months Ended
March 31,

(In Thousands)

2021


2020

OPERATING ACTIVITIES:




Net Earnings (Loss)

$

79,488



$

(280,005)


Adjustments to Reconcile Net Earnings (Loss) to Net Cash Provided by Operating Activities:




Depreciation of Lease Merchandise

505,057



597,407


Other Depreciation and Amortization

7,114



25,267


Provisions for Accounts Receivable and Loan Losses

42,964



97,804


Stock-Based Compensation

4,163



5,619


Deferred Income Taxes

5,529



(90,268)


Impairment of Goodwill and Other Assets



466,030


Non-Cash Lease Expense

229



26,895


Other Changes, Net

(179)



839


Changes in Operating Assets and Liabilities, Net of Effects of Acquisitions and Dispositions:




Additions to Lease Merchandise

(490,710)



(556,807)


Book Value of Lease Merchandise Sold or Disposed

21,335



114,762


Accounts Receivable

(29,238)



(68,420)


Prepaid Expenses and Other Assets

(4,422)



9,347


Income Tax Receivable



(44,137)


Operating Lease Right-of-Use Assets and Liabilities

(400)



(25,579)


Accounts Payable and Accrued Expenses

26,897



(43,584)


Customer Deposits and Advance Payments

(759)



(7,410)


Cash Provided by Operating Activities

167,068



227,760


INVESTING ACTIVITIES:




Investments in Loans Receivable

(48,720)



(21,997)


Proceeds from Loans Receivable

30,821



14,956


Outflows on Purchases of Property, Plant and Equipment

(1,844)



(23,587)


Proceeds from Disposition of Property, Plant, and Equipment

12



906


Outflows on Acquisitions of Businesses and Customer Agreements. Net of Cash Acquired



(855)


Cash Used in Investing Activities

(19,731)



(30,577)


FINANCING ACTIVITIES:




Borrowings on Revolving Facility, Net



300,000


Proceeds from Debt



5,625


Repayments on Debt



(392)


Acquisition of Treasury Stock

(28,102)




Dividends Paid



(2,668)


Issuance of Stock Under Stock Option Plans

282



528


Shares Withheld for Tax Payments

(5,011)



(5,877)


Debt Issuance Costs



(1,020)


Cash (Used in) Provided by Financing Activities

(32,831)



296,196


EFFECT OF EXCHANGE RATE CHANGES



(117)


Increase in Cash and Cash Equivalents

114,506



493,262


Cash and Cash Equivalents at Beginning of Period

36,645



57,755


Cash and Cash Equivalents at End of Period

$

151,151



$

551,017


PROG Holdings, Inc.

Quarterly Revenues by Segment

(In thousands)



Unaudited


Three Months Ended


March 31, 2021


Progressive Leasing

Vive

Consolidated Total

Lease Revenues and Fees

$

707,982


$


$

707,982


Interest and Fees on Loans Receivable


13,019


13,019


Total Revenues

$

707,982


$

13,019


$

721,001







Unaudited


Three Months Ended


March 31, 2020


Progressive Leasing

Vive

Consolidated Total

Lease Revenues and Fees

$

658,534


$


$

658,534


Interest and Fees on Loans Receivable


9,908


9,908


Total Revenues

$

658,534


$

9,908


$

668,442


Use of Non-GAAP Financial Information:

Non-GAAP net earnings from continuing operations, non-GAAP diluted earnings from continuing operations per share, EBITDA and adjusted EBITDA are supplemental measures of our performance that are not calculated in accordance with generally accepted accounting principles in the United States ("GAAP"). Non-GAAP net earnings from continuing operations and non-GAAP diluted earnings from continuing operations per share for the three months ended March 31, 2021, exclude intangible amortization expense. Non-GAAP net earnings from continuing operations and non-GAAP diluted earnings from continuing operations per share for the three months ended March 31, 2020 exclude intangible amortization expense and income tax benefits from our revaluation of net operating loss carrybacks resulting from the CARES Act. The amounts for these after-tax non-GAAP adjustments, which are tax effected using our statutory tax rate, can be found in the reconciliation of net earnings from continuing operations and earnings from continuing operations per share assuming dilution to non-GAAP net earnings from continuing operations and earnings from continuing operations per share assuming dilution table in this press release. 

The EBITDA and adjusted EBITDA figures presented in this press release are calculated as the Company's earnings before interest expense, net, depreciation on property, plant and equipment, amortization of intangible assets and income taxes. Adjusted EBITDA for the three months ended March 31, 2021 and 2020 also excludes stock-based compensation expense. The amounts for these pre-tax non-GAAP adjustments can be found in the quarterly segment EBITDA tables in this press release. Adjusted EBITDA for the Company's full year 2021 outlook is calculated as projected earnings before interest expense, interest income, depreciation on property, plant and equipment, amortization of intangible assets and income taxes. Adjusted EBITDA for the Company's full year 2021 outlook also excludes stock-based compensation expense. 

In addition to the adjusted EBITDA reconciliations for the three months ended March 31, 2021 and March 31, 2020 set forth in this discussion about use of non-GAAP financial information, we have included the earnings (loss) from continuing operations before tax and adjusted EBITDA for the Company and each segment for the three months ended June 30, 2020, September 30, 2020 and December 31, 2020, along with the related GAAP to Non-GAAP reconciliations. The earnings (loss) from continuing operations before tax and adjusted EBITDA results for each quarter in 2020 exclude the discontinued operations resulting from our spin-off of the Aaron's Business segment effective November 30, 2020. We believe investors may find that information helpful in evaluating our earnings from continuing operations and adjusted EBITDA performance in future periods. 

Adjusted EBITDA for three months ended June 30, 2020, September 30, 2020, and December 31, 2020 also excludes: (i) stock-based compensation expense, (ii) insurance reimbursements for certain legal costs associated with our FTC regulatory charge; (iii) stock-based compensation modification expense and other executive retirement charges resulting from our separation and distribution of Aaron's Business; (iv) income tax benefits from our revaluation of net operating loss carrybacks resulting from the CARES Act; (v) income tax expense for the recognition of a revaluation allowance on foreign tax credits resulting from our separation and distribution of Aaron's Business; and (vi) certain corporate restructuring charges.

Management believes that non-GAAP net earnings from continuing operations, non-GAAP diluted earnings from continuing operations per share, EBITDA and adjusted EBITDA provide relevant and useful information, and are widely used by analysts, investors and competitors in our industry as well as by our management in assessing both consolidated and business unit performance.

EBITDA, adjusted EBITDA, non-GAAP net earnings from continuing operations and non-GAAP diluted earnings from continuing operations provide management and investors with an understanding of the results from the primary operations of our business by excluding the effects of certain items that generally arose from larger, one-time transactions that are not reflective of the ordinary earnings activity of our operations or transactions that have variability and volatility of the amount. We believe the exclusion of stock-based compensation expense provides for a better comparison of our operating results with our peer companies as the calculations of stock-based compensation vary from period to period and company to company due to different valuation methodologies, subjective assumptions and the variety of award types. This measure may be useful to an investor in evaluating the underlying operating performance of our business.

EBITDA and adjusted EBITDA also provide management and investors with an understanding of one aspect of earnings before the impact of investing and financing charges and income taxes. These measures may be useful to an investor in evaluating our operating performance because the measures:

  • Are widely used by investors to measure a company's operating performance without regard to items excluded from the calculation of such measure, which can vary substantially from company to company depending upon accounting methods, book value of assets, capital structure and the method by which assets were acquired, among other factors. 

  • Are a financial measurement that is used by rating agencies, lenders and other parties to evaluate our creditworthiness. 

  • Are used by our management for various purposes, including as a measure of performance of our operating entities and as a basis for strategic planning and forecasting.

Non-GAAP financial measures, however, should not be used as a substitute for, or considered superior to, measures of financial performance prepared in accordance with GAAP, such as the Company's GAAP basis net earnings from continuing operations and diluted earnings from continuing operations per share and the GAAP revenues and earnings from continuing operations before income taxes of the Company's segments, which are also presented in the press release. Further, we caution investors that amounts presented in accordance with our definitions of non-GAAP net earnings from continuing operations, non-GAAP diluted earnings from continuing operations per share, EBITDA, and adjusted EBITDA may not be comparable to similar measures disclosed by other companies, because not all companies and analysts calculate these measures in the same manner. 

PROG Holdings Inc.

Reconciliation of Net Earnings and Earnings Per Share Assuming Dilution from Continuing Operations to Non-GAAP Net Earnings and Earnings Per Share Assuming Dilution from Continuing Operations

(In thousands, except per share amounts)



Unaudited


Three Months Ended


March 31,


2021

2020

Net Earnings from Continuing Operations

$

79,488


$

57,682


Add: Intangible Amortization Expense

5,421


5,566


Less: Tax impact of adjustments (1)

(1,409)


(1,447)


Less: NOL Carryback Revaluation


(34,190)


Non-GAAP Net Earnings from Continuing Operations

$

83,500


$

27,611





Earnings from Continuing Operations Per Share Assuming Dilution

$

1.16


$

0.85


Add: Intangible Amortization Expense

0.08


0.08


Less: Tax impact of adjustments (1)

(0.02)


(0.02)


Less: NOL Carryback Revaluation


(0.50)


Non-GAAP Earnings from Continuing Operations Per Share Assuming Dilution(2)

$

1.22


$

0.41





Weighted Average Shares Outstanding Assuming Dilution

68,260


67,864






(1) Adjustments are tax-effected using an assumed statutory tax rate of 26.0%.

(2) In some cases, the sum of individual EPS amounts may not equal total non-GAAP EPS calculations due to rounding.

PROG Holdings Inc.

Non-GAAP Financial Information

Quarterly Segment EBITDA

(In thousands)



Unaudited


Three Months Ended


March 31, 2021


Progressive Leasing

Vive

Consolidated Total

Net Earnings from Continuing Operations



$

79,488


Income Taxes(1)



26,108


Earnings from Continuing Operations Before Income Taxes

$

104,172


$

1,424


105,596


Interest Expense

435


77


512


Depreciation

2,212


187


2,399


Amortization

5,421



5,421


EBITDA

112,240


1,688


113,928


Stock-Based Compensation

4,063


100


4,163


Adjusted EBITDA

$

116,303


$

1,788


$

118,091



(1) Taxes are calculated on a consolidated basis and are not identifiable by Company Segment.




Unaudited


Three Months Ended


March 31, 2020


Progressive Leasing

Vive

Unallocated
Corporate Expenses

Consolidated Total

Net Earnings from Continuing Operations




$

57,682


Income Taxes(1)




(7,857)


Earnings (Loss) from Continuing Operations Before Income Taxes

$

62,707


$

(7,152)


$

(5,730)


49,825


Depreciation

2,121


217



2,338


Amortization

5,421


145



5,566


EBITDA

70,249


(6,790)


(5,730)


57,729


Stock-Based Compensation(2)

2,736


84


2,042


4,862


Adjusted EBITDA

$

72,985


$

(6,706)


$

(3,688)


$

62,591



(1) Taxes are calculated on a consolidated basis and are not identifiable by Company Segment.

(2) 2020 quarterly Adjusted EBITDA metrics have been updated to add-back Stock-based compensation to conform to management's 2021 definition of Adjusted EBITDA.

PROG Holdings Inc.

Non-GAAP Financial Information

Quarterly Segment EBITDA

(In thousands)



Three Months Ended


June 30, 2020


Progressive Leasing

Vive

Unallocated
Corporate Expenses

Consolidated Total

Net Earnings from Continuing Operations




$

58,997


Income Taxes(1)




767


Earnings (Loss) Before Income Taxes

$

63,113


$

1,626


$

(4,975)


59,764


Depreciation

2,179


210



2,389


Amortization

5,421


145



5,566


EBITDA

70,713


1,981


(4,975)


67,719


Stock-Based Compensation(2)

3,270


96


2,187


5,553


Restructuring Expenses, Net



238


238


Adjusted EBITDA

$

73,983


$

2,077


$

(2,550)


$

73,510



(1) Taxes are calculated on a consolidated basis and are not identifiable by Company Segment.

(2) 2020 quarterly Adjusted EBITDA metrics have been updated to add-back Stock-based compensation to conform to management's 2021 definition of Adjusted EBITDA.




Three Months Ended


September 30, 2020


Progressive Leasing

Vive

Unallocated
Corporate Expenses

Consolidated Total

Net Earnings from Continuing Operations




$

74,643


Income Taxes(1)




21,005


Earnings (Loss) Before Income Taxes

$

106,682


$

(2,347)


$

(8,687)


95,648


Depreciation

2,208


196



2,404


Amortization

5,420


145



5,565


EBITDA

114,310


(2,006)


(8,687)


103,617


Insurance Recoveries related to legal and regulatory expenses

(835)




(835)


Stock-Based Compensation(2)

2,931


141


2,345


5,417


Separation Costs

1,765



678


2,443


Adjusted EBITDA

$

118,171


$

(1,865)


$

(5,664)


$

110,642



(1) Taxes are calculated on a consolidated basis and are not identifiable by Company Segment.

(2) 2020 quarterly Adjusted EBITDA metrics have been updated to add-back Stock-based compensation to conform to management's 2021 definition of Adjusted EBITDA.

PROG Holdings Inc.

Non-GAAP Financial Information

Quarterly Segment EBITDA

(In thousands)




Three Months Ended


December 31, 2020


Progressive
Leasing

Vive

Unallocated
Corporate
Expenses

Consolidated Total


Net Earnings from Continuing Operations




$

42,305



Income Taxes(1)




24,034



Earnings (Loss) Before Income Taxes

$

88,134


$

(3,307)


$

(18,488)


66,339



Interest Expense

187




187



Depreciation

2,356


192



2,548



Amortization

5,421


23



5,444



EBITDA

96,098


(3,092)


(18,488)


74,518



Stock-based compensation(2)

3,518


46


1,007


4,571



Separation Costs

572



14,938


15,510



Adjusted EBITDA

$

100,188


$

(3,046)


$

(2,543)


$

94,599










(1) Taxes are calculated on a consolidated basis and are not identifiable by Company Segment.

(2) 2020 quarterly Adjusted EBITDA metrics have been updated to add-back Stock-based compensation to conform to management's 2021 definition of Adjusted EBITDA.

PROG Holdings Inc.

Gross Merchandise Volume by Quarter

(In thousands)



Three Months Ended


Year Ended


Three Months
Ended


Mar 31,

Jun 30,

Sept 30,

Dec 31,


Dec 31,


Mar 31,


2020


2020


2021

Progressive Leasing

462,025


404,018


448,843


536,422



1,851,308



510,046


Vive

25,376


21,536


37,883


45,956



130,751



55,898


Total

487,401


425,554


486,726


582,378



1,982,059



565,944


Reconciliation of Full Year 2021 Outlook for Adjusted EBITDA

(In thousands)



Full Year 2021 Ranges


Progressive Leasing

Vive

Consolidated Total

Estimated Net Earnings



$246,000 - $259,000

Taxes(1)



82,000 - 88,000

Projected Earnings Before Taxes

328,000 - 345,000

0 - 2,000

328,000 -347,000

Interest Expense

1,000

700

1,700

Depreciation

10,800

800

11,600

Amortization

21,700

21,700

Projected EBITDA

361,500 - 378,500

1,500 - 3,500

363,000 - 382,000

Stock-based compensation

16,500 - 17,500

500

17,000 - 18,000

Projected Adjusted EBITDA

378,000 - 396,000

2,000 - 4,000

380,000 - 400,000


(1) Taxes are calculated on a consolidated basis and are not identifiable by Company segments.

Reconciliation of Full Year 2021 Outlook for Earnings Per Share

Assuming Dilution to Non-GAAP Earnings Per Share Assuming Dilution



Full Year 2021 Range


Low

High

Projected Earnings Per Share Assuming Dilution

$

3.56


$

3.81


Add Projected Intangible Amortization Expense

0.24


0.24


Projected Non-GAAP Earnings Per Share Assuming Dilution

$

3.80


$

4.05


PROG Holdings, Inc. logo (PRNewsfoto/PROG Holdings, Inc.)
PROG Holdings, Inc. logo (PRNewsfoto/PROG Holdings, Inc.)

SOURCE PROG Holdings, Inc.