PROG Holdings Q2 Revenue Dips Slightly

TL;DR

PROG Holdings revenue down slightly in Q2 2024. Watch closely.

AI Summary

PROG Holdings, Inc. filed its 10-Q for the period ending June 30, 2024. The company reported lease revenues and fees of $301.7 million for the second quarter of 2024, a slight decrease from $303.1 million in the same period of 2023. For the first six months of 2024, lease revenues and fees were $600.7 million, down from $603.7 million in the first half of 2023. Interest and fees on loans receivable also saw a minor decline in both the quarter and year-to-date periods.

Why It Matters

This filing indicates a slight slowdown in PROG Holdings' core revenue streams, which could impact future profitability and investor sentiment.

Risk Assessment

Risk Level: medium — The slight decline in revenues and interest income suggests potential headwinds for the company's business model.

Key Numbers

• $301.7M — Q2 2024 Lease Revenues and Fees (Slightly down from $303.1M in Q2 2023)
• $600.7M — YTD 2024 Lease Revenues and Fees (Slightly down from $603.7M in YTD 2023)
• $301.7M — Q2 2024 Lease Revenues and Fees (Represents the primary revenue stream for the company.)

Key Players & Entities

• PROG Holdings, Inc. (company) — Filer of the 10-Q
• Aaron's Holdings Company, Inc. (company) — Former name of PROG Holdings, Inc.
• 20240630 (date) — End of reporting period
• $301.7 million (dollar_amount) — Lease revenues and fees for Q2 2024
• $303.1 million (dollar_amount) — Lease revenues and fees for Q2 2023
• $600.7 million (dollar_amount) — Lease revenues and fees for the first six months of 2024
• $603.7 million (dollar_amount) — Lease revenues and fees for the first six months of 2023

FAQ

Key Financial Figures

• $0.50 — ange on which registered Common Stock, $0.50 Par Value PRG New York Stock Exchange

Filing Documents

• prg-20240630.htm (10-Q) — 1282KB
• a2024q2exhibit311.htm (EX-31.1) — 14KB
• a2024q2exhibit312.htm (EX-31.2) — 13KB
• a2024q2exhibit321.htm (EX-32.1) — 5KB
• a2024q2exhibit322.htm (EX-32.2) — 5KB
• 0001808834-24-000096.txt ( ) — 7200KB
• prg-20240630.xsd (EX-101.SCH) — 41KB
• prg-20240630_cal.xml (EX-101.CAL) — 59KB
• prg-20240630_def.xml (EX-101.DEF) — 202KB
• prg-20240630_lab.xml (EX-101.LAB) — 535KB
• prg-20240630_pre.xml (EX-101.PRE) — 376KB
• prg-20240630_htm.xml (XML) — 1342KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 3 Condensed Consolidated Balance Sheets – June 3 0 , 2024 (Unaudited) and December 31, 2023 3 Condensed Consolidated Statements of Earnings (Unaudited) – Three and Six Months Ended June 3 0 , 2024 and 2023 4 Condensed Consolidated Statements of Cash Flows (Unaudited) – Six Months Ended June 3 0 , 2024 and 2023 5 Notes to Condensed Consolidated Financial Statements (Unaudited) 6

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 23

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 37

Controls and Procedures

Item 4. Controls and Procedures 38

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 39

Risk Factors

Item 1A. Risk Factors 39

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 39

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 39

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 39

Other Information

Item 5. Other Information 39

Exhibits

Item 6. Exhibits 40

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS PROG HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) June 30, 2024 December 31, 2023 (In Thousands, Except Share Data) ASSETS: Cash and Cash Equivalents $ 250,134 $ 155,416 Accounts Receivable (net of allowances of $ 64,682 in 2024 and $ 64,180 in 2023) 61,453 67,879 Lease Merchandise (net of accumulated depreciation and allowances of $ 434,348 in 2024 and $ 423,466 in 2023) 563,594 633,427 Loans Receivable (net of allowances and unamortized fees of $ 48,937 in 2024 and $ 50,022 in 2023) 119,322 126,823 Property and Equipment, Net 21,505 24,104 Operating Lease Right-of-Use Assets 4,116 9,271 Goodwill 296,061 296,061 Other Intangibles, Net 81,776 91,664 Income Tax Receivable 10,354 32,918 Deferred Income Tax Assets 2,368 2,981 Prepaid Expenses and Other Assets 50,024 50,711 Total Assets $ 1,460,707 $ 1,491,255 LIABILITIES & SHAREHOLDERS' EQUITY: Accounts Payable and Accrued Expenses $ 150,337 $ 151,259 Deferred Income Tax Liabilities 87,252 104,838 Customer Deposits and Advance Payments 34,746 35,713 Operating Lease Liabilities 13,605 15,849 Debt 592,914 592,265 Total Liabilities 878,854 899,924 Commitments and Contingencies (Note 4) SHAREHOLDERS' EQUITY: Common Stock, Par Value $ 0.50 Per Share: Authorized: 225,000,000 Shares at June 30, 2024 and December 31, 2023; Shares Issued: 82,078,654 at June 30, 2024 and December 31, 2023 41,039 41,039 Additional Paid-in Capital 347,552 352,421 Retained Earnings 1,338,201 1,293,073 1,726,792 1,686,533 Less: Treasury Shares at Cost Common Stock: 39,763,190 Shares at June 30, 2024 and 38,404,527 at December 31, 2023 ( 1,144,939 ) ( 1,095,202 ) Total Shareholders' Equity 581,853 591,331 Total Liabilities & Shareholders' Equity $ 1,460,707 $ 1,491,255 The accompanying notes are an integral part of the Condensed Consolidated Financial Statements . 3 PROG HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) Three Mon

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View this 10-Q filing on SEC EDGAR