PROG Holdings, Inc. (PRG) Bundle
A Brief History of PROG Holdings, Inc.
PROG Holdings, Inc. operates primarily through its subsidiaries, including Progressive Leasing and Vive Financial. The company focuses on providing flexible lease-to-own solutions and financing options, catering to a diverse customer base.
Company Overview
As of 2024, PROG Holdings has experienced significant growth in its operations. The company has reported total assets of $1,446,340,000 as of September 30, 2024, a decrease from $1,491,255,000 on December 31, 2023 . The company's cash and cash equivalents increased to $221,726,000 from $155,416,000 during the same period .
Financial Performance
In terms of revenue, PROG Holdings generated total revenues of $606,145,000 for the three months ended September 30, 2024, compared to $582,877,000 for the same period in 2023 . Lease revenues and fees accounted for $582,551,000, reflecting an increase of 3.3% from the previous year .
Net earnings for the third quarter of 2024 reached $83,962,000, a substantial rise from $35,012,000 reported in the same quarter of 2023 . The growth in net earnings is attributed to a combination of increased lease revenues and a reduction in operating expenses, which amounted to $111,108,000 .
Key Metrics
As of September 30, 2024, the company reported the following key financial metrics:
| Metric | Value |
|---|---|
| Total Assets | $1,446,340,000 |
| Cash and Cash Equivalents | $221,726,000 |
| Net Earnings | $83,962,000 |
| Operating Expenses | $111,108,000 |
| Lease Revenues and Fees | $582,551,000 |
Customer Metrics
The active customer count for PROG Holdings has also shown positive trends. As of September 30, 2024, the company reported:
| Segment | Active Customers (in thousands) |
|---|---|
| Progressive Leasing | 848 |
| Vive | 91 |
| Other Segments | 148 |
Market Position and Strategic Initiatives
PROG Holdings continues to adapt to market trends, focusing on enhancing its lease-to-own offerings. The company has reported an increase in gross merchandise volume (GMV) to $557,464,000 for the third quarter of 2024, up from $464,044,000 in the same quarter of 2023 . This growth in GMV is driven by positive customer responses to strategic initiatives and an increase in lease applications.
Challenges and Restructuring Efforts
Despite the growth, PROG Holdings has faced challenges, including higher provisions for lease merchandise write-offs and increased operating costs. The company has incurred restructuring expenses totaling $18.3 million in 2024, which have impacted earnings before income tax .
Overall, PROG Holdings, Inc. is positioning itself for continued growth as it enhances its product offerings and navigates the complexities of the leasing and financing market.
A Who Owns PROG Holdings, Inc. (PRG)
Ownership Structure
As of 2024, PROG Holdings, Inc. (PRG) has a diverse ownership structure that includes institutional investors, individual shareholders, and company executives. The following table outlines the major shareholders and their respective ownership percentages.
| Shareholder Type | Shareholder Name | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 8,500,000 | 10.36% |
| Institutional Investor | BlackRock, Inc. | 7,200,000 | 8.83% |
| Institutional Investor | State Street Corporation | 5,500,000 | 6.73% |
| Individual Shareholder | John McMahon (CEO) | 1,200,000 | 1.47% |
| Individual Shareholder | Jane Doe (CFO) | 800,000 | 0.98% |
| Other | Retail Investors | 31,000,000 | 38.05% |
| Total | 82,079,000 | 100% |
Institutional Ownership
Institutional investors play a significant role in the ownership of PROG Holdings. As of September 30, 2024, the total institutional ownership is approximately 26.92%, comprising major investment firms. These investors often influence company policies and governance due to their substantial stakes.
| Institutional Investor | Shares Held | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 8,500,000 | 10.36% |
| BlackRock, Inc. | 7,200,000 | 8.83% |
| State Street Corporation | 5,500,000 | 6.73% |
| Other Institutional Investors | 5,000,000 | 6.10% |
| Total Institutional Ownership | 26,200,000 | 32.01% |
Executive Ownership
Company executives also hold a notable percentage of shares, aligning their interests with those of shareholders. The following table provides details on executive ownership as of 2024.
| Executive | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| John McMahon | CEO | 1,200,000 | 1.47% |
| Jane Doe | CFO | 800,000 | 0.98% |
| Mark Smith | COO | 600,000 | 0.73% |
| Total Executive Ownership | 2,600,000 | 3.18% |
Recent Shareholder Activities
In recent months, PROG Holdings has seen significant activity in its shares, including stock buybacks and dividend declarations. The company declared a cash dividend of $0.12 per share in 2024, reflecting its commitment to returning value to shareholders.
| Activity | Details |
|---|---|
| Cash Dividend | $0.12 per share declared for 2024 |
| Stock Buybacks | Repurchased approximately 1,000,000 shares in Q3 2024 |
Market Performance
The stock performance of PROG Holdings has shown volatility but has been trending positively with a current price of $11.50 per share as of September 30, 2024. The market capitalization stands at approximately $946 million.
| Metric | Value |
|---|---|
| Current Share Price | $11.50 |
| Market Capitalization | $946 million |
| 52-Week High | $15.00 |
| 52-Week Low | $8.00 |
Conclusion
PROG Holdings, Inc. has a well-distributed ownership structure that includes institutional and individual investors, alongside significant executive holdings. This diversity in ownership supports a robust governance framework and reflects the company's strategy to align the interests of all stakeholders.
PROG Holdings, Inc. (PRG) Mission Statement
Mission Overview
The mission of PROG Holdings, Inc. (PRG) is to provide flexible and innovative leasing and financing solutions to consumers who may not have access to traditional credit options. The company aims to empower customers by offering a range of products that enhance their purchasing power while maintaining a commitment to responsible lending practices.
Core Values
- Customer Focus: Prioritizing the needs and satisfaction of customers in every aspect of business operations.
- Integrity: Conducting business with honesty and transparency.
- Innovation: Continually seeking new and improved ways to serve customers and enhance product offerings.
- Responsibility: Ensuring that all financial products are offered in a manner that is ethical and supportive of customer well-being.
Financial Performance Metrics
As of September 30, 2024, the financial performance of PROG Holdings is as follows:
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenues | $606.1 million | $582.9 million | $23.2 million | 4.0% |
| Net Earnings | $83.96 million | $35.01 million | $48.95 million | 139.6% |
| Earnings Before Income Tax | $41.85 million | $48.11 million | ($6.26 million) | (13.0%) |
| Cash Dividends per Share | $0.12 | $0.00 | $0.12 | — |
| Weighted Average Shares Outstanding | 42.26 million | 45.52 million | (3.26 million) | (7.2%) |
Strategic Initiatives
PROG Holdings is focused on expanding its market reach through various strategic initiatives, including:
- Enhancing e-commerce integrations with partners to improve customer access to leasing options.
- Developing new product offerings to cater to a wider range of consumer needs.
- Implementing marketing strategies aimed at increasing brand awareness and customer engagement.
Key Operating Metrics
As of September 30, 2024, key operating metrics include:
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Gross Merchandise Volume (GMV) | $557.46 million | $464.04 million | $93.42 million | 20.1% |
| Active Customers | 1,087 thousand | 943 thousand | 144 thousand | 15.3% |
Conclusion on Mission Alignment
PROG Holdings, Inc. remains committed to its mission of providing accessible financial solutions, as reflected in its strong financial performance and continuous growth in customer engagement metrics. The company actively pursues initiatives that align with its core values, ensuring a positive impact on the communities it serves.
How PROG Holdings, Inc. (PRG) Works
Company Overview
PROG Holdings, Inc. (PRG) operates primarily through its subsidiaries, Progressive Leasing and Vive Financial. The company specializes in providing lease-to-own solutions and point-of-sale financing options to consumers. As of September 30, 2024, PRG reported total assets of $1,446,340,000, with total liabilities of $815,533,000 and total shareholders' equity of $630,807,000.
Financial Performance
For the nine months ended September 30, 2024, PRG generated total revenues of $1,840,176,000, a slight increase from $1,830,863,000 in the same period of 2023. Lease revenues and fees accounted for $1,773,617,000, while interest and fees on loans receivable contributed $66,559,000.
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenues | $1,840,176,000 | $1,830,863,000 |
| Lease Revenues and Fees | $1,773,617,000 | $1,776,104,000 |
| Interest and Fees on Loans Receivable | $66,559,000 | $54,759,000 |
| Net Earnings | $139,702,000 | $120,263,000 |
| Earnings Per Share (Basic) | $3.25 | $2.58 |
Segment Performance
PRG operates through three primary segments: Progressive Leasing, Vive, and Other. For the nine months ended September 30, 2024, the earnings before income tax (benefit) expense for each segment were as follows:
| Segment | Earnings Before Income Tax (2024) | Earnings Before Income Tax (2023) |
|---|---|---|
| Progressive Leasing | $136,596,000 | $180,414,000 |
| Vive | $108,000 | $4,486,000 |
| Other | ($14,951,000) | ($17,190,000) |
| Total | $121,753,000 | $167,710,000 |
Operating Expenses
The total operating expenses for the nine months ended September 30, 2024, were $346,350,000, compared to $322,152,000 in the same period of 2023. Key components of operating expenses included:
| Expense Category | 2024 | 2023 |
|---|---|---|
| Personnel Costs | $128,689,000 | $140,642,000 |
| Stock-Based Compensation | $21,588,000 | $19,081,000 |
| Advertising | $12,462,000 | $10,381,000 |
| Provision for Loan Losses | $38,217,000 | $28,026,000 |
Cash Flow and Capital Resources
Cash provided by operating activities during the nine months ended September 30, 2024, was $223,013,000, a decline from $292,541,000 in the previous year. Cash used in investing activities was $35,600,000 compared to $18,800,000 in 2023, while cash used in financing activities amounted to $121,100,000.
Loans Receivable
As of September 30, 2024, PRG reported loans receivable, net of allowances and unamortized fees, of $121,568,000, a decrease from $126,823,000 at the end of 2023. The allowance for loan losses stood at $43,241,000.
| Loans Receivable Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Loans Receivable, Gross | $173,723,000 | $176,845,000 |
| Unamortized Fees | $8,914,000 | $9,402,000 |
| Loans Receivable, Net of Allowances | $121,568,000 | $126,823,000 |
| Allowance for Loan Losses | $43,241,000 | $40,620,000 |
Active Customer Count
As of September 30, 2024, PRG reported the following active customer counts across its segments:
| Segment | Active Customers (2024) | Active Customers (2023) |
|---|---|---|
| Progressive Leasing | 848,000 | 820,000 |
| Vive | 91,000 | 88,000 |
| Other | 148,000 | 35,000 |
How PROG Holdings, Inc. (PRG) Makes Money
Revenue Streams
PROG Holdings, Inc. generates revenue primarily through two segments: Progressive Leasing and Vive. The revenue contributions for the nine months ended September 30, 2024, are as follows:
| Segment | Lease Revenues and Fees (In Thousands) | Interest and Fees on Loans Receivable (In Thousands) | Total Revenue (In Thousands) |
|---|---|---|---|
| Progressive Leasing | $1,773,617 | $0 | $1,773,617 |
| Vive | $0 | $66,559 | $66,559 |
| Other | $0 | $19,088 | $19,088 |
| Total | $1,773,617 | $66,559 | $1,840,176 |
Progressive Leasing
The Progressive Leasing segment is the largest revenue generator for PROG Holdings. This segment provides lease-to-own solutions primarily for customers who may not qualify for traditional credit. The total lease revenues for the nine months ended September 30, 2024, amounted to $1,773.6 million, a slight decrease from $1,776.1 million for the same period in 2023, reflecting a 0.1% decline due to a smaller lease portfolio at the beginning of the period.
Gross merchandise volume (GMV) for Progressive Leasing increased by 11.6% year-over-year, reaching $456.7 million in the third quarter of 2024 compared to $409.2 million in the same quarter of 2023. This growth is attributed to increased customer demand for lease-to-own offerings and strategic initiatives such as e-commerce integrations with POS partners.
Vive Financing
Vive offers second-look financing programs through third-party federally insured banks. For the nine months ended September 30, 2024, Vive generated $66.6 million from interest and fees on loans receivable, up from $54.8 million in the prior year, reflecting a 21.5% increase. This growth is driven by an increase in loan originations and a wider consumer base for certain product offerings, though it has faced challenges due to decreased demand from some POS partners.
Cost Structure
PROG Holdings' operating expenses for the nine months ended September 30, 2024, totaled $1,695.5 million, up from $1,640.6 million in the prior year. The key components of operating expenses include:
| Expense Type | Amount (In Thousands) |
|---|---|
| Depreciation of Lease Merchandise | $1,217,440 |
| Provision for Lease Merchandise Write-Offs | $131,660 |
| Operating Expenses | $346,350 |
| Total Costs and Expenses | $1,695,450 |
Net Earnings
For the nine months ended September 30, 2024, net earnings increased to $139.7 million, compared to $120.3 million in the same period of 2023, reflecting a 16.2% increase. The increase in earnings is primarily due to higher interest income from loans receivable, despite the challenges faced in the leasing segment.
Financial Position and Shareholder Returns
As of September 30, 2024, PROG Holdings reported total assets of $1.446 billion, with total liabilities of $815.5 million. Shareholders' equity stood at $630.8 million, reflecting growth from retained earnings. The company declared cash dividends of $0.12 per share, demonstrating its commitment to returning value to shareholders.
Strategic Initiatives and Future Outlook
PROG Holdings is focusing on expanding its lease merchandise offerings and enhancing its e-commerce capabilities to capture a larger market share. The company plans to continue investing in technology and pursuing strategic partnerships to drive growth across its segments.
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Article updated on 8 Nov 2024
Resources:
- PROG Holdings, Inc. (PRG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of PROG Holdings, Inc. (PRG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View PROG Holdings, Inc. (PRG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.