Prog Holdings Q1 2024 Financial Results

Prog Holdings, Inc. (NYSE: PRG) has released its financial results for the first quarter of 2024, revealing a mixed performance compared to the same period in 2023. The company reported consolidated revenues of $641.9 million, a 2.0% decrease from the first quarter of 2023. Additionally, the company's adjusted EBITDA for the quarter decreased by 19.1% to $72.6 million, representing 11.3% of revenues, compared with $89.7 million, or 13.7% of revenues in the same period in 2023.

The diluted earnings per share for the first quarter of 2024 were $0.49, compared with $1.00 in the year-ago period. On a non-GAAP basis, diluted earnings per share were $0.91 in the first quarter of 2024, compared with $1.11 for the same period in 2023. The company's weighted average shares outstanding assuming dilution in the first quarter were 7.5% lower year-over-year.

Progressive Leasing, a subsidiary of Prog Holdings, reported flat year-over-year gross merchandise volume (GMV) of $418.5 million for the first quarter of 2024. The provision for lease merchandise write-offs for the quarter was 7.0%, within the company's 6%-8% targeted annual range.

Prog Holdings ended the first quarter of 2024 with cash of $252.8 million and gross debt of $600 million. During the quarter, the company repurchased $24.4 million of its stock at an average price of $31.31 per share, leaving $475.6 million of repurchase authorization under the $500 million share repurchase program. Additionally, the company paid a cash dividend of $0.12 per share.

Looking ahead, Prog Holdings is updating its full year 2024 outlook for revenue and earnings, as well as providing its outlook for revenues, net earnings, adjusted EBITDA, GAAP diluted EPS, and non-GAAP diluted EPS for the second quarter of 2024. The company's revised outlook reflects a difficult operating environment with continued soft demand for consumer durable goods.

The market has reacted to these announcements by moving the company's shares 7.6% to a price of $35.27. For the full picture, make sure to review PROG's 8-K report.

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