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Mar 31, 2024
Upbound Q1 2024 Earnings Report
Upbound Group, Inc. reported strong first quarter 2024 results, exceeding mid-point targets for revenue, Adjusted EBITDA, and Non-GAAP Diluted EPS, driven by growth momentum in Acima GMV and Rent-A-Center U.S. same store sales.
Key Takeaways
Upbound Group, Inc. delivered a strong first quarter 2024, with total revenues increasing 7.9% year-over-year to $1,096.0 million. The company reported GAAP diluted EPS of $0.50 and Non-GAAP diluted EPS of $0.79, exceeding mid-point targets. Adjusted EBITDA was $109.1 million, with growth driven by Acima GMV and Rent-A-Center U.S. same store sales.
Consolidated revenues increased 7.9% year-over-year to $1,096.0 million, driven by higher rentals, fees, and merchandise sales.
GAAP operating profit was $61.8 million, a significant improvement from a $(35.1) million GAAP operating loss in the prior year period.
Adjusted EBITDA decreased 2.2% year-over-year to $109.1 million, with higher Rent-A-Center segment Adjusted EBITDA offset by lower Acima segment Adjusted EBITDA and higher Corporate costs.
Non-GAAP diluted earnings per share was $0.79, compared to $0.83 in the prior year period, exceeding mid-point targets.
Upbound
Upbound
Upbound Revenue by Segment
Revenue by Segment
Acima Revenue
CapyFin.com Forward Guidance
Upbound Group, Inc. reaffirmed its full-year 2024 financial guidance, maintaining targets for revenue, Adjusted EBITDA, Non-GAAP Diluted Earnings Per Share, and Free Cash Flow.
Positive Outlook
- Acima's nearly 20% GMV growth and Rent-A-Center's same store sales growth contributed to revenue increases in both segments.
- Disciplined underwriting resulted in overall LCOs slightly better than expectations, with Rent-A-Center's LCO rate decreasing year-over-year and Acima's LCO rate decreasing sequentially.
- Progress on capital allocation strategy, reducing debt by approximately $19 million in the quarter.
- Distribution of the first quarterly dividend of 2024 at $0.37, an increase from $0.34 last year.
- Strong financial position with net debt of $1.2 billion and leverage of 2.7x at quarter-end.
Challenges Ahead
- The inherent uncertainty related to special items makes it difficult to provide a meaningful forecast of comparable GAAP measures.
- The actual amount of special items during 2024 may significantly impact future GAAP results.
- The company is mindful of headwinds facing consumers, despite strong employment metrics supporting demand.
- The company does not provide a GAAP forecast or reconciliation due to the inherent uncertainty of special items.
- The company is not obligated to publicly release any revisions to forward-looking statements unless required by law.