PROG Holdings, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting a mixed performance across its segments. Total revenues for Q3 2024 reached $606.1 million, a 4.0% increase from $582.9 million in Q3 2023. This growth was primarily driven by a 3.3% rise in lease revenues and fees, which totaled $582.6 million, and a significant 26.2% increase in interest and fees on loans receivable, amounting to $23.6 million.
For the nine months ended September 30, 2024, total revenues slightly increased to $1.84 billion from $1.83 billion in the same period of 2023. However, lease revenues and fees experienced a marginal decline to $1.77 billion, down from $1.78 billion, attributed to a smaller lease portfolio. The Vive segment's revenues also decreased to $47.5 million from $51.9 million, reflecting reduced demand from certain point-of-sale partners.
Net earnings for Q3 2024 surged to $84.0 million, compared to $35.0 million in Q3 2023, while net earnings for the nine-month period increased to $139.7 million from $120.3 million in the prior year. Basic earnings per share for Q3 2024 were $1.99, up from $0.77 in Q3 2023, and $3.25 for the nine months, compared to $2.58 in the previous year.
The company’s operating expenses for Q3 2024 totaled $111.1 million, a slight increase from $109.2 million in Q3 2023. Notably, personnel costs decreased by 9.6% to $42.3 million, reflecting workforce reductions at Progressive Leasing. However, the provision for loan losses rose significantly to $15.1 million, up 43.8% from the previous year, driven by increased loan activity.
Strategically, PROG Holdings has been focusing on cost reduction initiatives initiated in 2022, which continued into 2024. The company also faced challenges from a cybersecurity incident in Q3 2023, leading to ongoing lawsuits and associated costs totaling $3.2 million since the incident.
As of September 30, 2024, PROG Holdings had cash and cash equivalents of $221.7 million, an increase from $155.4 million at the end of 2023. Total liabilities decreased to $815.5 million from $899.9 million, while total shareholders' equity rose to $630.8 million from $591.3 million. The company remains compliant with its debt covenants and has no outstanding borrowings under its revolving credit facility.
About PROG Holdings, Inc.
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