Prog Holdings, Inc. (NYSE:PRG) has reported its financial results for the fourth quarter of 2023 and announced the initiation of a quarterly cash dividend for shareholders, as well as a $500 million share repurchase authorization.
The company's consolidated revenues for the fourth quarter of 2023 were $577.4 million, representing a 5.7% decrease from the same period in 2022. Consolidated net earnings for the quarter were $18.6 million, a decline from $36.1 million in the prior year period. Adjusted EBITDA for the quarter decreased to $61.0 million, or 10.6% of revenues, compared with $74.4 million, or 12.2% of revenues for the same period in 2022.
Steve Michaels, President and CEO of Prog Holdings, expressed his satisfaction with the financial results, stating, "We were pleased to finish 2023 with financial results that matched or exceeded our outlook, as strong customer behavior and conversion rates during the holiday period drove a year-over-year increase in quarterly GMV, due in part to marketing and other initiatives we put in place with our retail partners. Our portfolio remains healthy, and we continue to effectively manage its performance while maintaining cost discipline in the face of challenging retail conditions, enabling us to deliver strong results for both the fourth quarter and the full year."
Michaels also commented on the company's decision to initiate a quarterly cash dividend and the share repurchase authorization, saying, "Additionally, our board of directors has approved payment of a quarterly cash dividend of $0.12 per share of company common stock in the first quarter of 2024 alongside a new $500 million share repurchase authorization. We believe our cash-efficient model will allow us to reinvest in the business while pursuing a balanced capital return strategy for our shareholders."
Prog Holdings ended the fourth quarter of 2023 with cash of $155.4 million and gross debt of $600 million. The company repurchased $31.3 million of its stock in the quarter at an average price of $28.35 per share. The board has authorized a total of $500 million of share repurchases under the company’s existing share repurchase program, as well as a quarterly cash dividend of $0.12 per share of the company's common stock, payable on March 28, 2024, to shareholders of record at the close of business on March 14, 2024.
Looking ahead, Prog Holdings is issuing full-year and Q1 2024 outlook for various financial metrics, assuming a difficult operating environment with continued soft demand for consumer durable goods.
The company's shares have moved -1.3% and are now trading at a price of $31.86.
The company's full 8-K submission is available here.
