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Sep 30, 2024
Upbound Q3 2024 Earnings Report
Upbound Group, Inc. reported strong third-quarter results with significant growth in revenue, net earnings, and EPS, driven by strong performance in both Acima and Rent-A-Center segments.
Key Takeaways
Upbound Group, Inc. delivered a robust third quarter in 2024, with consolidated revenues increasing by 9.2% year-over-year to $1,068.9 million. Net earnings saw a substantial rise to $30.9 million, and diluted EPS reached $0.55, with non-GAAP diluted EPS at $0.95. This performance was bolstered by double-digit GMV growth in Acima and positive same-store sales growth in Rent-A-Center, positioning the company to achieve its full-year 2024 guidance.
Consolidated revenues increased 9.2% year-over-year to $1,068.9 million, driven by higher rentals and fees revenue and merchandise sales.
GAAP operating profit increased to $70.1 million, up from $58.1 million in the prior year, with the operating profit margin improving to 6.6%.
Net earnings surged to $30.9 million, a $26.5 million increase from the prior year, primarily due to a prior year tax impact.
Adjusted EBITDA increased 10.3% year-over-year to $116.9 million, with improvements in both Acima and Rent-A-Center segments and lower Corporate costs.
Upbound
Upbound
Upbound Revenue by Segment
Revenue by Segment
Acima Revenue
CapyFin.comRent-A-Center Revenue
CapyFin.com Forward Guidance
Upbound Group, Inc. has tightened its full-year 2024 financial guidance, reflecting confidence in achieving its targets despite ongoing economic uncertainties. The company expects continued growth and strong performance, driven by strategic investments and operational efficiencies.
Positive Outlook
- Consolidated Revenues guidance maintained at $4.20 billion - $4.30 billion.
- Adjusted EBITDA Excluding SBC guidance tightened to $470 million - $480 million (previously $465 million - $485 million).
- Non-GAAP Diluted Earnings Per Share guidance tightened to $3.75 - $3.90 (previously $3.65 - $4.00).
- Free Cash Flow guidance maintained at $100 million - $130 million.
- Company is well-positioned to drive sustainable growth and long-term returns with a robust balance sheet and approaching $600 million in liquidity.
Challenges Ahead
- Inherent uncertainty related to special items may significantly impact future GAAP results.
- Economic backdrop continues to be characterized by uncertainty despite strong employment metrics.
- Consumers are selective with their spending, requiring dynamic decisioning.
- Seasonal trends in delinquency rates require continuous monitoring and underwriting refinements.
- Management does not believe it is able to provide a meaningful forecast of comparable GAAP measures or reconciliation due to inherent uncertainty of special items.
Revenue & Expenses
Visualization of income flow from segment revenue to net income