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Dec 31, 2023
Upbound Q4 2022 Earnings Report
Upbound Group, Inc. reported its fourth quarter and full year 2022 financial results, with total revenue of $990.5 million for the fourth quarter and $4.2 billion for the full year.
Key Takeaways
Upbound Group, Inc. (formerly Rent-A-Center, Inc.) announced its fourth quarter and full year 2022 results, showing a decrease in consolidated revenues primarily due to lower lease portfolio values. Despite challenging macroeconomic conditions, the company exceeded its revised outlook, driven by strong execution in top-line, risk management, and efficiency initiatives. The company also announced a corporate name change to Upbound Group, Inc. to align with its new enterprise brand and strategic vision.
Total revenue for the fourth quarter of 2022 was $990.5 million, a 15.4% decrease year-over-year.
GAAP diluted EPS for the fourth quarter of 2022 was $0.05, down from $0.15 in the prior year period.
Non-GAAP diluted EPS for the fourth quarter of 2022 was $0.86, compared to $1.08 in the prior year period.
The company announced a corporate name change to Upbound Group, Inc., effective February 27, 2023, to unify its resources and capabilities under a new enterprise brand.
Upbound
Upbound
Upbound Revenue by Segment
Revenue by Segment
Acima Revenue
CapyFin.com Forward Guidance
The Company is providing guidance for its 2023 fiscal year, anticipating revenues between $3.8 billion and $4.0 billion, Adjusted EBITDA between $380 million and $415 million, Non-GAAP Diluted Earnings Per Share between $2.50 and $3.00, and Free Cash Flow between $180 million and $215 million.
Positive Outlook
- Anticipated revenues of $3.8 billion to $4.0 billion for full year 2023.
- Projected Adjusted EBITDA of $380 million to $415 million for full year 2023.
- Expected Non-GAAP Diluted Earnings Per Share of $2.50 to $3.00 for full year 2023.
- Forecasted Free Cash Flow of $180 million to $215 million for full year 2023.
- The guidance reflects the Company's confidence in addressing growing demand for flexible consumer financial solutions.
Challenges Ahead
- The guidance excludes the impact of special items due to inherent uncertainty, which may significantly impact future GAAP results.
- Non-GAAP diluted earnings per share guidance excludes the impact of incremental depreciation and amortization related to acquired Acima assets.
- Non-GAAP diluted earnings per share guidance excludes stock compensation expense associated with the Acima acquisition equity consideration.
- Non-GAAP diluted earnings per share guidance excludes one-time transaction and integration costs related to the Acima acquisition.
- Guidance excludes the impact of any future share repurchases, which could affect diluted earnings per share.