PROG (PRG) 25 Apr 192019 Q1 Earnings call transcript

Company Profile

Participants

Michael Dickerson	VP, Investor Relations
John Robinson	President & CEO
Ryan Woodley	CEO, Progressive Leasing
Douglas Lindsay	President
Steve Michaels	CFO, President & Strategic Operations
John Baugh	Stifel
Budd Bugatch	Raymond James
Brad Thomas	KeyBanc Capital Markets
Bill Chappell	SunTrust
Kyle Joseph	Jefferies
Anthony Chukumba	Loop Capital Markets
Vincent Caintic	Stephens, Inc.

Call transcript

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Operator

Good morning. My name is Andrea and I will be your conference coordinator. At this time, I would like to welcome everyone to the Aaron's, Inc.

First Quarter 2019 Earnings Conference Call. [Operator Instructions]. is event this note being recorded. Please now will turn the Mr. to over call I President for Investor Dickerson, of Michael Vice Relations Aaron's, Inc.

You conference. your may begin

Michael Dickerson

you conference everyone. first Thank morning, the good Inc. Aaron's, Welcome quarter call. to earnings XXXX and

Many Joining of Progressive and Woodley, Executive you President of Aaron's, Inc. of Chief Steve Lindsay, Douglas Financial morning Strategic President me and Officer Aaron's Officer, Chief of Michaels, issued seen business are and this already Executive Robinson, a Inc. earnings John our Chief Operations. this Leasing, Ryan President of Officer morning. have the Aaron's, copy release

For section it of not, those is relations at website the Aaron.com. investor who of our you available have on

into your looking update cause call to end business cautioned Form provision forward we results for During statements certain Harbor Also, attention statements. with EBITDA, and not to differ adjusted may earnings our companies. detailed certain EPS, that earnings These description reconciliation forward year GAAP statements non call, and are referring today's which have non-GAAP may our make our filings The the results call emphasis performance forward of compatibility related from we provide them statements the for net investors undue the which risks that, the statements. looking. on content and Safe the The flows non with actual the included XX, safe are now and our to results a looking from company's be comparisons other and On December earnings these assist provision periods be statements. cash company's measures materially our please meaningful prior operational end see non-GAAP for financial certain forward no risk of that insight be to such identifies of and our release. and the the XXXX tables operational may operating XX-K EBITDA, GAAP non-GAAP provides with SEC believes looking that harbor to that will differ Listeners items the turn our John of understanding including with the company financial I ongoing found facilitate to measures, adjusted will release. Robinson. of at over performance. With measures subsequent our measures to of help obligation and forward this affect looking to and place been for undertake will to these performance any to can to call I materially want we cause

John Robinson

Thanks, all for thank today. us you Mike. joining And

per share, trends and time report growth prior strong up On of to first invoice revenues strong million improvements primarily EPS the an first and Adjusted adjusted the XX% a respectively, a in revenue more start Progressive, over basis, quarter we from ever, in for pleased locations a are both franchise non-GAAP a the than for XXXX. of result continued consolidated increase achieved $X.X year XXXX. quarter same in Aaron's to is same the and in billion store increase acquisition business EBITDA $X the of We $XXX meaningfully at XXXX. This quarter. of

originations our the across this of quarter. that believe the refunds businesses. performance government financial uncertainty outstanding than delivered and expected affected the we timing and tax quarter, in customer's part the XXXX While in to in federal our behavior that believe of the shutdown fewer we contributed value We

to I'm our primarily quarter, call EBITDA business, and This net is the lease first by of the line experienced discuss lower XXXX. of the provides to trends and results As Ryan favorable I delivered invest quarter. retailers. a in the continue than in million with national a activity our that is debt Despite disruptions large first portfolio available $XXX in Aaron's to liquidity now are to and the us strong teams with second by flexibility due expectations return good lease turn a our to remain with strategic XX We shareholders. will results. ended to QX we over buyout capital Progressive's our opportunities, pleased result, enter term. customers and Progressive portfolio ratio somewhat smaller quarter explore financial are than off planned to conservatively start capitalized business one to the in we as the however, adjusted The over the day less in

Ryan Woodley

very Thanks, delivered the the John. the with pleased quarter. results in team am I first

ahead generate resulting conversion invoice growth per was increase from to driven XX.X% one destined pipeline to active quarter quarter, a quarter rose in continue as growth to XXXX revenues. of the in Revenue XX% XXX strong financial XX.X% in first and volume performance compared future in door. million. of invoice the the increase Revenues We by

result and Our count first was partially by additions offset was first reduction down was This mobile from quarter XX,XXX, which primarily quarter X% a change in the of verticals. a XXXX. doors active approximately of door active and within other mattress

basis of believe was margin of mix basis revenue compared primarily by evidenced as lease less calculated overall driven predictive points. the on ago standard, box by year the the We expenses activity and versus adoption as year day and and indicator mix the with buyout activity of was year, standard, write-offs XXXX lower revenues activity. accelerating accounting leading EBITDA ago basis bought bigger growth, lease of the a of shifts same XX.X% online and and X% towards of result retailers. period. XXXX was XX first the new SG&A accounting over adoption as quarter quarter X.X% XX reported an first and tax well XXXX year and in the in were revenue of compared expansion increased to and federal the to revenues day consistent shifts EBITDA to future consistent last XX.X% invoice a period quarter the particularly door increase of leveraging XXX changes our period, lower the of in year new growth. total Calculated per believe ongoing strong count portfolio growth a by is compared XXXX XX.X% of As active on refund invoice EBITDA the as we with the as door, becoming

to pools towards of the customers. with the I As into our of will the the experience turn possible our the expectations. momentum line providing Douglas I'm and demonstrated year, effort continue metric, the in about by QX carrying significant the discuss for are best well and pleased business this remain remainder the with quarter results. the consistency our over excited I now and Aaron's we're lease second to the has call team made perform to

Douglas Lindsay

Thanks, Ryan.

of was quarter quarters improvement basis first same We quarter, business, our Same three was row. terms are has first pleased the line XXXX. positive and for store expectations revenue near in prior performance X.X% with and revenue in which in adjusted from and positive the the points with been in revenue. flat a XXX a since in Same quarter same Aaron's quarter store EBITDA, revenue, financial the revenue store store

the over as percent our the X% in promotional said of quarter write an I'll earnings to drive of the is quarter in is within consecutive rapid These later of the as generation franchise of investments offset Adjusted We initiatives in that year offs from XXXX. a revenues with us pleased the for of continue a last and technology. were year, down on in and an offerings, prudently across its compared tax mobile business. strong to the a positive was next activity growth years, transformation and each XX.X% customer compared in margin, X% scale a XXXX. the benefited in increased areas same improvements momentum. system. these platform experience. period terms the ago customer ongoing Aarons.com of That our during continued with increasing to transformation and in processes from expect full of a revenues by results we of the in was pillar outlook gain higher and you fourth pricing, versus described the our ticket which to acquired we lease Lease product and investments result year, of ticket type including X% call and government partially quarter. increased and trend e-commerce refine offs, year to Revenues who the range increase entire initiatives, to of On business increased unusual the number revenue initiatives refunds initiatives investments as our quarter in quarter, initiatives traffic in timing in same which our of expanded to of as in revenue. first of a customer mix, Write stores expect Aaron's We our believe store offs XX.X% of disappointed We're related delivery same younger, business this is and uncertainty basis by which XXXX our higher enable three revenue growth testing X.X% primarily shopping revenue store prior increased quarters. quarter. the of an year EBITDA strategy investment in Steve. improvements collections, key EBITDA compared X.X% and for the prefers is over quarter continue increase these refund season turn This leases, to are year. ongoing the people and to onboarding, conversion concept. contributing will also mix the shut make somewhat omni-channel increase the and to an our throughout continue call the write now attracting centralized closure Adjusted were the versus higher of Aarons.com to X.X% last nine the X.X% to amounts. we store for Lease and driven key benefited in was activity

Steve Michaels

the as you of an pronouncement operating with to substantially calculated asset Douglas. recognize In first adoption related and lease consolidated our all to adopted of XXX a information the asset our million company of sheet use press right XXX XXXX XXXX, new on on requires million. XXXX liability. to At on were of a balance accounting release, a Thanks, an period same for quarter new the the had ASC-XXX. as basis. a standard of added accounting of of Effective liability the lease some we leases leases. of of right operating table an a use to non-debt we ago, The provide comparison company the of a and a equivalent first have consistent ASC-XXX the the non-debt operating On end quarter year lease basis, a $X over revenues increase for XX.X% when billion, basis QX, of revenue

is increase EPS resulting have XX.X% an basis XXX $X.XX of on from to $X.X XX was the increase for this quarter. than the on gross for XXXX, to consolidated was consistent in billion. the more accounting we revenue of first of revenue same mentioned, EBITDA XXXX year, the last margin. quarterly the million increased quarter the for million of in John XX.X%. prior points Adjusted for of compared a XX.X% or posted Diluted non-GAAP amount year Adjusted quarter time year, basis, versus a basis As the from an quarter of this a quarter company a first of period first EBITDA first $X million the XX XXX higher

of XX from driven will million earnings of to throughout largely by classification of the and period. increase of related was XXXX year ago a operating addition the year-over-year operating revenue the release, of of in acquisition amortization, locations have driven across Progressive. you Adjusting quarter XXXX due approximately component would resulting and to from of expense marketing is to the expenses personnel. write-offs spread million XXXX be XX% versus franchise XX.X% XX% expenses bad with in the The increase is first X expenses Progressive approximately XXXX growth in operating the increased seen operating debt at or the the the at of change the and expenses increase consistent increase As ASC-XXX. About line from acquired and due adoption have investments expectations the decrease significant by with balance reporting, in expenses, intangible to

the scheduled of of Aaron's quarter charges of million operating with for the we XX available debt the made the to a from of of $XXX XXX remaining until and the conservatively charges no generated adjusted net quarter on turns. cash Tax activities X.X During liquidity strategic the from capitalized first of end compared stores. store XX million resulting our our at the XXX of million, quarter, senior XXX closed the on additional principal notes of company at end end scheduled ratio first management's existing and the portfolio. EBITDA the XXXX with to store April we We XXXX. of senior million, company is XX XXXX The with principal associated primarily quarter, of The unsecured quarter a recorded payment notes. locations, million in XX consisting with first unsecured of outstanding payments review mid-April, the balance closed remain After was ended million impairment in million. these restructuring notes

while results year, the results to XXXX early outlook. we are indicated our delivered in it's and in are We on that we still our confident quarter in ability the the first in deliver pleased strong

we release had continuation provide to that accelerate timely statements assist included flow balance turn questions. before XXQ and we taking our showing financial transparency we call end operator To initiative earnings statement our the of of to increase the earnings. selected quarter, for with to full the only information. to market Lastly, over the opposed on will with is the a filing This cash the this as release. I and sheet in opens the With will your that, beginning day items

Operator

from our ahead. Please of John And Stifel. go comes [Operator Instructions]. first question Baugh

John Baugh

in the on you particularly and that the might some on appreciate not comment Ryan the and look in supposed appreciate of may focus next How with onboarding invoice on whatever versus else Let's I start maybe and volume. doors that you the with the have see. four might know, the doors to We'll pipeline. but BestBuy quarters we're

Ryan Woodley

the specifically, primarily offset through at door seeing those for ended mattress the reduction expect about the was but that to reductions We see account close prior we additions were next the so will be and out the and on the again, some continue given we elsewhere, beginning of three quarter the by do we saying we compensated quarters, remainder to in the first we those concentrated mobile QX, expected to just expect pressure of year in see by dynamic the referenced quarters. of for timing the the and next quarter several talked that up

John Baugh

you or on day, does you which and the that of XX and shift Okay. parse mix refund and in rebound to look say tax those April was sort how delay, And then some XX of day then something? going or tax the relate refund number and could I increase the there delay forward? wonder two March activity if kind Or

Ryan Woodley

towards quarter, imagine, end prior the see is spot pronounced intuition of there, the March part we returned your earlier more tax by did quarter. similar the you Yes, as might on effect the with we year levels the in to essentially of

the of refunds on So mix a but margin we overall as strong have, the drivers we're that would of a obviously see will day less then as slightly older you XX revenue, occurs, account day XX that average seeing you expansion. with drive the mix a growth and of spite of by buyout continued fewer kind played composition revenues, which influencing expect and delayed out portfolio lot in portfolio it

in higher So the two factors resulting in we the a primary saw quarter. margin gross

John Baugh

that's pricing the pressure a about you years by XXXX, talk are in mix store on those pretty I around know [ph] don't can numbers little Obviously you that bit how my any your increase us congrats good. good that's ecommerce, good. calculation Douglas, sounds in same changes and view give give then some wow, business? guys solid it if and to six Could still your volumes and

Douglas Lindsay

sure. Yes,

comps also about to business. store. doing of and you forever ticket with and right ticket merchandising traffic. drive is two a course ticket particular, sort the and drive up initiatives, know, you're but driving in we transformation you raised driving flatten talked question. to strategy focused So we're comping the sell which ticket business working on and and ticket see is first and these live year right of in people how been big our top both some We've And over for the do new in starting business. can't now last that'll our traffic margin of our business begin to what this considerably, in portfolio the we're customer to your in on really We really over on the years is think maximize E-comm, probably driver ticket itself we've ticket have on is out things now the our that think of free really know, that's initiatives of stores we the was focus up I second and merchandising

our said It I XX% year. e-comm. year over was think bullish I was at XX% it revenue right up into really the the on portfolio, written of

think new all are the built and for more and customers we're place I that new growth the enhancements us online. in around seeing more we poising platform customers more we've our With there. the stores e-comm put new and in both team and comes

we're our that's and new been customer in So driving that traffic, results. channels excited reflected about both more really

John Baugh

that Okay. margin XX you was of don't mentioned And then able basis some on EBITDA point the business. in XXX that Douglas of points think I to grow and you're basis [indiscernible] increase pressures the yet

you looks a what like you. you with and walk Thank forward picture of you B, did can how a going So yang. yin know, A, through that kind that and

Douglas Lindsay

it lease to expansion, our of most on XX is really margin strategy. came happy of Yes, we're merchandising which points back related Sure. margin with EBITDA the directly expansion basis the

we've that's been that's and transformation gotten all stores XXX labor based business really our efficiencies helped and point great offs our basis proud initiatives. our in I'm also this in teams investing that of also while some write to helped offset do Although our able store we've and increase in

So basis we're all those about. XX having really combined point increase happy and a

promotional I and continue value part net about at existing I than at higher portfolio customers also as going mix, we think as ticket e-comm of off driving of newer, we're book our in the this strategy, which this new all higher mentioned Now you and that rate a charge higher and off higher forward, introducing write offs bigger customers charges new a customers is which remarks, of know, in value adjusted a at as is customer. We look my margins. our risk naturally then e-comm, has terms into a

the happy that So really risk margin and each on margin we write of We minus our lease what's adjusted margin. happy promotions we And burden channel we're and are with through of with and we're our a profile fully now. business right offs? so basis each our with deliver the measure where our and happy

John Baugh

Ryan, that through question you benefit there February. or you March maybe in that? lastly, saw delayed and asked and I opposed Could same And a walk April, you that January us to refund know, was as impact tax

John Robinson

anecdotally, lot so It's John cost the system the deliveries originations Aaron's affected problem we our definitely specifically by on later it it's necessarily they a so wider some trended rate this to were and Robinson, and that definitely is that delivery be affected working to to cases, that the that well they it it more and time in XX sure, or I refunds standpoint, lost that believe, know, whether we've from back buyout trend, and were side the quarter. didn't not, than cautious the all day many that dynamics were you is, the expected expectations, were ground business across our don't get for relative saw get expectations customers than feedback lighter customers in on you think expected we and We the we're drove, our have hard. described side, and back from and progressive back and later they a our which and of same Ryan publicized businesses,

Douglas get of strategies lot and great to his of hard team over back a the that. working it the have rest we're year do to So and

our confident perspective, But trends we're quarter. collections news season data and is that So from that. was our our the expected. out The definitely, than perspective, end but about come there's delivery the from improved tax we different it good saw there lot by of we of in and a unusual and

John Baugh

business addressable your - you just in excited with e-comm? what that the a moving you with of with market, is don't And parts excited Progressive, What are total high there? in see? about the the level see you're terms I national less the doing things do you you. very discussions know in opportunity, with the more core Thank what big having you're mind how the retailers or chained Are

Ryan Woodley

very that of for the goods We're big and more about excited to group lives serve for all their Thank in our this We're businesses, excited. asking the to the for we best they a our way. get need solutions question. underserved potential their a very we customer. you really believe positive those change for It's customers to provide population that's

unique and it I feel our capital Retail to of really So kind capture our we think a through really a we the better confident big of If Progressive a strategies better it's sheet on of well continue get there's of really and people. the to and us have that that about it's position of of have like go opportunity couple the continuous we on opportunities kind us space ability kind day, set of with and we every and just can or you it's our large, can business green starts here. growth feel at people set every in Aaron's the we day, it's, side, balance really assets, attitude unique position. go lot that new or us execute our with incumbent markets whether National get around I front to improvement

opportunity. couldn't all the So be I prouder be and more excited about than couldn't

John Baugh

and guidance, I'll philosophy pretty any than guess us here there big and in I other that's QX one for or reiterate thought sneak year? in early the And [indiscernible] more

Ryan Woodley

in Yes, you the got It's year. it. early

three light We're year. So the the tax into of with months results, particularly the we're in really season. unusual pleased

we we we So after of execute the you column ranges reiterated our QX update balance for QX. guys year start. we the a our will got it's on we the in But still feel good to plan and provide

Operator

next Our question from Raymond Please Budd comes James. of Bugatch ahead. go

Budd Bugatch

guess a the with on points little XX I'll positive I start Aaron's bit the congratulations basis comp.

been now Sunday that this year. let you us what Douglas to think did quantify know did maybe contribution open Can you or You've Sundays the for that's to on meaningful that opening if about? comp,

Douglas Lindsay

for think Sunday, it our for our says puts days, not in say on competitive necessarily and Sunday, We're marketplace. other and amount and bodes to going to Sunday position our the on did business stores, tremendous the well in but there. it first good open of I'll customers say to across not Budd. it just a quantify I pivot just We're our to a in has decision real contributed Sure, more certainly team is had days also it We make that much team lot made fact. I a I better members job to Yes, want helped seven hard chain a We're all from seeing being think to all, cannibalizing really staffed are with and us we're a has I seeing do appreciate comps which Sunday performing new expectations. open line a week now and happen. who it's the this

Budd Bugatch

[ph] without shipment open? Sunday positive been comp you would What if weren't

Douglas Lindsay

the comps this apart We're not competition on breaking call. of

Budd Bugatch

calculate revenues than we it reduces of you bad of last then in that percentage I was was thought in know Okay, did but the were our think to other looked I have to debts X.X% quarters. tried. a this the which I debt year was lowest still the expense How it any change was reported I bad Progressive's it the I what think quarter in quarter? lower I year bad debt going we and Progressive's know accounting have it get

Steve Michaels

X.X% the Budd, last at right We came in same in performing accounting are arrived the line basis on year similar well. pools and with

Budd Bugatch

you talked know channel down little of I don't the maybe want Delta? a that get - on it and how door Ryan, bit basis many you net and the how and did a to the of puts many kind down being add by counts doors on we to about takes doors I at were the get you Okay, can doors but a

Ryan Woodley

about don't of of the in me, have talked the partner saying accounts it talked that it resulted in and about was It's front that composition I the the effect the National about And several several a that decline. gets previously. Yes, to we net worth net but from we then was on but than those of we mattress and the mobile XXX Mattress hundred hundred that in X% spite and see it's XXX both so net invoice minus were that declines, there and out, in larger when potential those and some that. additions combined, had mattress in core elsewhere, and those they're the did doors growth and mobile, verticals you we strong for quarter us mobile excited the because about

Budd Bugatch

they now doors when put your will And rollout national done be those on board? is player are is or all

Ryan Woodley

We're that in partnership. We're providing where excited rollout, at, that excited about we're not about the color. obviously particularly

cases with we're we care the exceptional know, all best the You on for stores their customer. taking partners, focused of and the possibly executing them can and

we're So where say further other the pleased and with I really won't to excited detail than that remains about at any opportunity provide we're

Budd Bugatch

are on and some new new business but And the overall excited close about partner we I talked how the TAM, about funnel, know the being John data? partner

Ryan Woodley

largely a the very pipeline those the Yes, the working opportunities, be team to and opportunity. and Like comprised continues to It's population. said, certainly bulk pilots we're in the pipeline national past, have of into the it's we the really to underserved to folks third today in rollouts convert is be pilots of of stages think it mentioned about the both and into that continue each leads excited and regional those in of positioned I today. guess, I we as and we hard John US well capture

Budd Bugatch

me to so I maybe we of be we the Aaron's, at Progressive know can have and in didn't fees if we work revenue least and Q we're if wouldn't going I it it for for maybe ask Okay, but there cost the for revenue, models. our on get

Steve Michaels

the on I it'll mean, here you consistent but I've there be XX.X% so quarter the hour in so the half in gross is out just from sorry, guess the coming basis would Q's and the in been Aaron's XX is it listed margin apologies. and the for got Progressive way business know, then a - consolidated, my in is have I'm Q we it that's inverse XX.X I from is appreciation XX%

Budd Bugatch

half will the wait is it's to that. hour the noticeably for out coming it's Q, really in that's Steve, much the you and kudos appreciate disclosure we for great. And improved and an different if Q do I just,

to would but kudos stronger kind be think what way John, the How that. the is think now think terms in for and look that changes And with away have from your I should from with [ph] we will question of we you question, So, walked my least for have last of team you seasonal taxes away it? John, way and put have this we we about to question know, particularly together, the Are quarter than do we it? about second - guidance it? what's we at should to had a seasonally how going some

Ryan Woodley

know, we we strong on investments Aaron's half front some non-GAAP provided But delivered earnings and QX, results, we on Progressive still have QX on business the as the of we're said about in we and loaded trends loaded end you know, you the it and, the QX to that and what end peak guidance, how for annual hold there's did seasonality and was layer color be gave effectively $X.XX within back give a such know, be and happy will you would back business the but range so quarter range year call delivered. know, but those some that you we would there's, be certainly get the EPS we the the room

Operator

Brad comes Please Our next go question Markets. from Capital of KeyBanc ahead. Thomas

Brad Thomas

to we think national Ryan get about on side. story say the Progressive like the one follow-up with a had the now. you you how ramp, know, want BestBuy I know, question first, the around right to is, partner, I'd number that

you're know, any know, you I versus, our a across retailer you are positive the we guess I X/Xrds a at we their think performs how rest think about that You us based? negative think of or can about, suggests help of as have store the there about you a in mean, this? of Progressive level side partnership your what today. work high obviously ramifications partnership if should size that like at live of the on differences side here about

Ryan Woodley

talked that execute we standard nature rollout about bit to required think company of off touches to areas across We that to it a the the set. get and investment lot the we national functional the the about of obviously Yes. a that ground,

the executing all in our the team our supporting the but just not field our can. technology marketing on it's managing it's teams, teams, our focused teams they know, You their in compliance we the the the product or folks best stores teams teams, adapt, possibly websites,

new launched those the door you count the Obviously, resources of of several is Progressive deploy of the higher and The thousand we've investment is, know, our over and year larger, thing good partners. door as increases. scale we that with So is history larger XX plus each the opportunities.

the out we come that with is discussed expect kind that as it places of accounts looks become offering at more like over some other as just elsewhere. retailer customers of calls, it evolves still we in seen longest look and they're play and and is we've are and playbook have their also of in locations accounts, you prior as if here to great it's the what it we our it our largest team they're time their familiar and and their deploying So know double at thing tenured evolution some The seeing rate. growing website, and availability on here within we're digit we

been to to ways with the and here large it has our of be finding productivity constantly we're of case tweak other levels the optimize higher accounts. model all So that as generate will expect

Brad Thomas

for Douglas, the congratulations store we again, you comp know, the just, year as then on and, think And same know, sales positive here. you about,

the know, may think through As you a know, any that should how this same you we cadence the be as your you believe better move accelerate, be that stronger see change Thanks. run mind forward. sales, still about and what you in about you're today's think store thinking going year about we rate, even of forward. I or, mean, with

Douglas Lindsay

XXX Yes, team of all I for last year proud think, you know, the first of basis increase the over point in comps.

expecting his So tax where been, coming of bounce and season, the are, out that portfolio of we're flat quarter comps lower where know, mentioned to where around been. kind comments we at where given they really that's really good. this as the they've they've happy We're range, in you John

few take deficit the guidance e-comm next going the between hours end And growth up the will X%. merchandising think seeing our quarters initiatives want a X% contributing. and at for continuing in transformation For in with the along business the positive and hold we've traction with comps of of of be made this I got our a our what strategy over the course quarter, lot reiterate to the do to for we Sunday in and year, of we're year obviously

positive all portfolio tax season. the negative decline really the those of So and offset

Operator

Our next question Please comes Bill Chappell ahead. SunTrust. of go from

Bill Chappell

in simple, to it Douglas. fact Keep

had is it? a So store way at possible all second and positive that can look or just sales Is to at help impact tax same store will quarter first negative on you the have the a same season on quantify effect quarter? if in the in sales thought

Douglas Lindsay

think don't No I so, Bill.

other lower quarters in in season you of soft season. say I I was sort the some us our X% the the business with portfolio those the during whole the think annually. a the so here's Aaron's but throughout offset was we have think we deliveries the tax back - ended I to know, get our have on season we year on expected, the up paid collected money, I as we decline to business we the we we were the would to for And, flattish, deliveries but may time that will saw I back initiatives call going what mean, initiatives tax other of but over - going balance, customer don't in net positive X%

Bill Chappell

of businesses Okay. Do the these the year. of gauge seasonality of mix or as better the that worse shift get to Ryan, you that, how kind understanding we trying I moved to shift. we move just mix the change year? to then I'm will but just of out of And as that some through understand expect kind there's rest plays trying to

Ryan Woodley

Yes.

it play affects see and reiterate revenues our rest, variables, you earlier, the in a how relates is the of my alluded you with mean, have past question that what feel annual to of we're QX the pricing I of and in will think the driven pools of the it accounts, in good I starting once are we remainder sits that say it talked what today through what And introduction, we rest as range And difference that we is rates you overall rates by several performing. function of felt of as in in, provided and in agent tax which confident are to and the pools we've satisfied how I for with do factor response and all growth. it that accounts, the X% I earlier, John's that about plays write-offs out to I the out QX we growth seeing think in know, existing kind to is new is the like then performing X% year. among enough portfolio obviously

Bill Chappell

finally, fairly then changes this Steve, they for share the rest the count understanding and all of cash for me, expectations or are of year year? the use and Okay, real for tax no just steady, rate,

Steve Michaels

as half-ish kind but think still XX.X around in be No - of QX than tax that's came year and do and that in large on in prudently. do shareholders far right. business, I across a share the but strategy opportunistic but as and we of as saw, have lower our then QX XXX every rate we will seasonally year, mean, you that still with continue that will remaining count the we looking the of acquisitions to capital happens a have the allocation use capital in cash it and remaining authorization authorizations across returning a think XX happens reinvesting and and still million and for

Operator

Our Kyle ahead. question comes go Please Jefferies. from of Joseph next

Kyle Joseph

Most don't questions kind been Ryan, of two mind. of just for have if my you answered

environment, if any you Progressive competitive give last the could of terms in changes us since Just on the quarter? update

Ryan Woodley

feel because it dynamic, competitive. it the remain market same repeat is I of I It does myself a competitive bit like a very I apologize but kind is

in out I those that that say unserved competing is retailer think cares the well we're are barriers pronounced remains for attracted there folks by lower. a the when the opportunity are dynamic that where more a a we opportunity regional I'll national and entry regions large or do our to whether really and capital, on of making, like customer retailers on our you things focus and to compliance, about that's roster relentless have the prioritization the care retailer focus factors. reliability where a of about relationships unmatched, our scale decision stability experience our access we the and know,

been that continues the has case. We that rate to that have be and the case a great win

optimism we the for of that out converting pipeline is supports the have think I there. some

Kyle Joseph

one if last could just less given call, the dynamics, there, conservative, then, side, for conservative, one you you talk talked trends, throughout us we underwriting you're about any about, underwriting lot And if getting Progressive And the know, more year you color on refunds there. provide can changes you then if changes tax me any there's just talk to about a know, this on any those also seasonally

Ryan Woodley

tell for a to the effort. got focused iterative large retailers them of to reasons our a to team to one a optimize on and It's can and to very very of answer always approach large with on. consistent portfolio expand marketplace one of a really, measure differentiator test the in the activities. us. Not we work in sort Progressive expect from enhancements answer first, their the on decision There's for and the obviously that why we're second We've then the performance

years XX to of work have We data with.

that we've So that. algorithms really on tweaking. it's will, aren't they've we've got excellent developed improvements our constantly we're you an There of sophisticated delivering time set and over decision to doing and step incremental if functions that focused team exactly been

Operator

Our next Please Capital go Markets Chukumba question comes of Anthony Loop from ahead.

Anthony Chukumba

door I [ph] that know, commentary any quarter, of compare. in against invoice in growth, you what in improvement quarter difficult the terms strong a active XX very I question from lot Progressive You so already drove XX.X know, doors invoice active you in can improvement? significant if terms the volume a to mean there's had give of XXXX you about I first you first your XX%, answered quarter the for wondering questions. a in went was very volume sequential the sequential of of relatively just fourth are Thanks. just

Ryan Woodley

of and was over flat for roughly our onboard out more increase and from productivity us, on year question. goes the seeing the a contributes for in productive which door. will the actually kind extremely per set per the productivity to we in doing production fortunate and portfolio working and execution of widespread well all partners part rate just highly toward with equal those was really, it's appreciate more been productive optimize that enough But benefit more model well, doors partners our fairly send level they're I more productivity. we we're to door field. in say doors, approval evolution do year, really QX increases deals, aren't of back created partners, going per an some in we've it door, that teams We the the and It overall driven and and record the per just door, leases past transactions, Yes, to by just

Operator

ahead. Caintic next Our go comes of question from Stephens. Please Vincent

Vincent Caintic

a asked what's previously Progressive. Just from questions two on follow-up been

trend kind seasonal of helpful. the really EPS appreciate that's So guidance

rollout, think I earnings. I the of maybe how the when components think Just about national about

you rollout to evenly do expenses a matched tend as how thinking think in up ramp about I'm this to about up expenses through these revenue or wondering be of the fairly rollout? of your you March, kind national So you national kind went versus versus maybe added just get ramps this

Ryan Woodley

Vincent. question Good Yes.

right, teams in launch, that to opportunities you You're do bit by just and we've you you loading out it you're investing what fact front you've expenses, expenses operations those a out front out phenomenally with want It u dynamic know, launch. of to is for loaded the definition the you well you've playing technology, our they expenses, to got retail you business The past. you do that we in critical execute revenue prior in see sort they that that a to SG&A partners further and of of build absolutely - is if a to you're roll bit the loaded places, build out that overall margin prior expansion that other why build generate got a is program our the out to and able front some discussed in were along while curve. right. places occurring is spite that's in of comes, and There in is to

higher productivities relationships. more mature a out on generating You've into and expanding now partner, of leverage now you're rolled level

the we of the now loading balancing resulting some saw period. in leverage the think I the places in in what's front So is

Vincent Caintic

perfect. Okay,

relationships rolling really hump there that would you're are prior going have particular to because there really fair? you see isn't already out, in that reaching you isn't be be their maturity, as expenses So that a just

Ryan Woodley

That's right.

about team on QX we've amount talking that scale, the resources what right building support would significant year, some especially warrant this been the been the in if piloting and extent and we're and it, for about the into that, that, to it's prepare to to of spent year a technology solution right think that. have a if that, visibility we've we've you rollout If working of last throughout

Vincent Caintic

categories one invoice more on us twice the on now. about counts changing comment invoices say generate can help different so national terms that have the helpful. sort door, the the way productivity or to of you Is that leases a compare the think regional you kind in other of about versus doors release And about, the press any is kind when relationship think per that Okay, accounts a of versus of I metrics metrics a per retailers? of any maybe appreciate just between help perfect, national very does door, door there

Ryan Woodley

is growth best the for really revenue invoice. indicator out The future there

component and it's you strong productivity and created suggest which is are in it doors isn't some would actually historically elsewhere. it And so down performance and past invoice equal strong in per metrics the are variation that so that the increases offset we've we all not parts, tried when into its periods, where in the invoice. door to to seem by in strong product the very used is total break doors get problem metric And that is and

number guess, should revenue that invoice real an is the on of it focus So because excellent predictor I performance. be

The a come others just trade-off.

John Robinson

is footprint retailer of around national John regional doors. of descriptor characteristics versus Vincent, necessarily mean the I is their this the and the more not the

business and have per door that very have lower some the So you retailers productivity their you could we with due are can regional national accounts to have nature productive. just of

So that necessarily regional indicate door versus doesn't necessarily productivity. national doesn't indicate

on between potential We are the brought excited national to necessarily about a some new but and of doors productivity there's the that regional. doesn't difference mean

Operator

concludes to over the session. Robinson like I'd any remarks. question and John This answer closing for to back our turn conference

John Robinson

challenged partners associates, I'd to you by the franchisees underserved to transformation customers. mission dedication for its and progressive conclusion, us deliver and To and everyone ability while like efforts. the very of high today. credit quality thank you. we're start retail much our our and Thank Thank and the our performance got business plan, still Aaron's products to being and our continue XXXX the on in on it's to we've execute to outlook. early summarize, in with XXXX progress pleased We're we're confident year, joining their In providing you and our at thank to a to pleased for made with ongoing strong

Operator

concluded. The Thank today's now conference presentation. is attending for you

You disconnect. may now

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