PROG (PRG) 4 Nov 192019 Q3 Earnings call transcript

Company Profile

Participants

Michael Dickerson	Vice President of Corporate Communications & Investor
John Robinson	President & Chief Executive Officer
Ryan Woodley	Chief Executive Officer of Progressive Leasing
Douglas Lindsay	President
Steve Michaels	Chief Financial Officer & President of Strategic operations
Brad Thomas	KeyBanc
John Baugh	Stifel
Jason Haas	Bank of America Merrill Lynch
Anthony Chukumba	Loop Capital
Kyle Joseph	Jefferies
Bill Chappell	SunTrust

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon. 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.

Third Quarter 2019 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. there a remarks, session. speakers' the will question-and-answer be After

Inc. to the Dickerson, and I Aaron's, turn over Investor Mr. for Communications will now Corporate conference Michael of Vice Relations President

You may conference. begin your

Michael Dickerson

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

Officer Executive Progressive business; this me Financial Leasing; operations. Inc. President the Aaron's Chief Douglas Steve Strategic John Woodley, Michaels, Chief Chief Inc. President Robinson, Lindsay, President Joining Ryan Aaron's Executive and Aaron's are and morning of Officer; and Officer of of

Many of our afternoon. you have a copy already earnings of seen this release issued

For have our on website of it of the aarons.com. is those available you who at section Investor Relations not,

our make be release. forward-looking statements differ this for risks materially from want found safe statements forward-looking actual certain that During content cause can to our harbor to the safe forward-looking. that earnings harbor will statements. our call, may end of the of be provision to we identifies I provision at The attention call the your results

cause differ our filings forward-looking not Form subsequent no ended actual Listeners XX, our year we December to XX-K related description place that the to to our emphasis are the undertake for obligation and to business may see statements under any for results and risks the XXXX of materially SEC statements. with forward-looking from please a cautioned the such statements. Also, on update

operational detailed comparability reconciliation have non-GAAP adjusted of referring the the other be and certain will included financial including which which we to non-GAAP and understanding tables measures These call, non-GAAP with items The performance results these may to into for comparisons these assist in measures operating company adjusted been today's the earnings facilitate of them are ongoing companies. EBITDA provides release. meaningful measures, On in flows measures non-GAAP with our performance EPS, operational certain affect non-GAAP and earnings EBITDA, and performance. prior insight financial and investors to help company's that cash our to with the company's provide believes periods

equivalent the call to a comparability provide the compared. new standard XXXX, the we as beginning to make period release company this have comments revenue the on our an will table in a basis. year effective for Throughout these comparison quarter to of made press adopted year-over-year of we the was information the comments Lastly, new you adoption our the first and items each today, related that added related accounting prior assumed with In some standard leases. certain of to ASC XXX, of at

will now to With that, Robinson. John I turn over the call

John Robinson

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

the quarter and challenging, third the accomplished we key Progressive improve significantly Aaron's objectives our was both which growth. While long-term business for prospects believe

quarter is the both respectively, XXXX EPS share growth Adjusted and Aaron's basis, On same a partially Aaron's revenue from first over primarily X.X% million invoice we diluted business consolidated of of XXXX. third stores franchise result of non-GAAP XXXX. of This the prior increase in at closure quarter. half continued of the year progressive $XX.X and up the locations acquisition $X.XX underperforming strong by EBITDA in were a offset the and per achieved in growth

volume retailers, should locations increased productivity grew The which to new earnings. team excellent rollout both additional delivered of due drive prior quarter existing growth invoice the accelerating fourth recent and for year quarter. the another along Progressive revenue over with quarter Invoice third XX.X% from in the and

in continue and Progressive's to systems We deliver growth. are results consistently encouraged invest strong future to and people by

written to in On The and a customer from successfully EBITDA, conversion note, revenues adjusted a weaker portfolio. sales driving into Aaron's same-store business traffic and a performance. primarily had collections in was the the challenging with revenues negative positive leading decline a quarter, team XX.X% resulting increase year-over-year

in are team's business. us confidence and e-commerce continue to We demand channels, both investing store customer generate our to which gives by Aaron's encouraged the the ability in

remain and ended with third We conservatively adjusted liquidity the over with quarter EBITDA less available million. of turn capitalized X.X a $XXX to ratio than of net debt

continue balance in sheet us strong our to capital and M&A Our provides opportunities flexibility pursue shareholders. to to invest return businesses,

returned During the cash quarter, through million share shareholders we our approximately to $XX and dividend. quarterly our repurchases

call Progressive the to I Now, over discuss will the turn Ryan business. to

Ryan Woodley

Thanks, XXXX. with for quarter for last Revenues revenue a team, were been delivering portfolio, quarter several resulting experiencing volume outstanding of last by quarters. proud was as another in consistent and XX.X% earnings consistently of from year-over-year or up the compared the several trends quarter, generated in strong $XXX John. increase to of the years. invoice, the I'm the the we've growth record third million growth, growth invoice Revenue lease third the in

door quarter, level in was the increases year-over-year XX.X% in $XXX increase per portfolio. due high location contributing strong per XX.X% driven productivity third a the all-time in invoice vertical, In to active invoice per across record to lease grew invoice nearly door. an of of a due by The significant in million, every transactions increase to active

of to in difficult pleased are existing we partnerships our it an experiencing ramp. into very enter partnerships growth volume While is currently and with fourth to forecast invoice We're invoice the continue position expand acceleration new as quarter. the timing exactly, we as

down was third door quarter X.X% Our approximately XX,XXX, XXXX. quarter third the of from count active

mobile this we partner we as have retail expect the prior shift positive to and new onboarded the and mattress in year recently begin as quarter become to locations, the metric reductions We comp from active. to fourth

locations leading by XX.X% same period overall predictive our shifts As transactions. indicator we as towards however, larger the mix primarily EBITDA XX.X% increased increase to year, revenues. previously of in as compared revenue due mentioned future has less e-commerce footprint believe to a count in last the door become particularly growth, as

in calculated accelerating by basis margin, accounting On XX.X% from was EBITDA increase gross in XX consistent offset was X.X% ago in and Also EBITDA of accounting an the write-offs an new partners. revenues, by of slightly The the the increase X.X% expansion consistent a basis, year-ago the period. to than basis, period. margin year third partially XX.X% points XXXX, growth on driven revenues investments of SG&A in were quarter better of a in support existing retail of

possible As demonstrated this And consistency pool end continues metric, expect be and the team momentum our annual I'm year to effort, performance remainder credit of the the strong. we're about within for to the range consumers. significant carrying experience providing well is previously the into by we excited of lease to year, the ongoing the provided. the pleased write-off I'm best we challenged the with making

quarter turn call to now Douglas will business discuss to the over I third the Aaron's results.

Douglas Lindsay

Ryan. Thanks,

update, further selling was combined program skills These in and develop marketing and sharp sales XX.X% recently companywide launched business drove response second drive direct and to marketing and years reallocated the a designed written spend in to our to behaviors. higher and to brand our a several initiative highest deliveries The revenues increase from traffic new recall our designed team to the increase a portfolio, e-commerce may programs quarter and initiatives our customers. The initiative conversion the Aaron's the channels. sales in-store programs, quarter which resulted You in member customer was advertising. into new in

e-commerce the quarter per on store the our the represented of Included increase of approximately in Because year-over-year fourth higher in in the these of this was entering XX% quarter. growth recurring written a success portfolio, revenues deliveries XX% was basis. into the which initiatives,

performance in from the pleased collections capacity in demand a the handle significant in we're in-sufficiently workload created shortfall elevated with an impact marketing lease and in the the and This in increase to write-offs While sales our unfavorable deliveries imbalance which on the generated revenues initiatives, capacity resulted the quarter. stores. had

During We're as collection collection the normalized a result improve addressed and already fourth collections quarter. team seeing will sales our more the we resources performance return the as this rebalanced by a collections. decline in-store quarter, these to adding exit our system and between efforts we of level members actions across believe and

basis, in goal higher right into revenues our declined find balance in collections written year-over-year a to consistently same-store due a quarter is significant performance. Ultimately, generate store will and and increase performance of portfolio revenues collections the on delivery the to per growth. our revenue Despite recurring that profitable X.X% the

flat the Adjusted year-ago annual new range quarter. due decreased a same-store partially written EBITDA revenue X%. EBITDA compared Given million offset in the X% increased positive to the close we've XX.X% of declined related expense quarter, by primarily benefit revenues portfolio collections reductions of stores. Adjusted to impact $X and X% negative outlook to negative to the of the or into up adjusted these of to our to results, range from a

revenues. in Write-offs were new in by of increase write-offs XXX last X.X% sales increasing same created XXXX primarily operational versus period an X.X% of by our closure year. stores in e-commerce imbalances was of The mix and driven the the initiatives, revenues

experienced encouraged business very progress the the including the throughout I'm quarter. challenges, delivery improved some Despite the in making activity we're Aaron's by

the to drive continue strategic improve activities. invest key We highest enable To customer will in experience that believe and added operational focus initiatives value on our efficiencies. we

I'll call over now Steve. to turn the

Steve Michaels

Douglas. a ago quarter was of basis XXXX over year increase a million for X.X%. were last period adoption when the year, same for million $X.X for the of an X.X% same Thanks, million, revenues on $XXX.X consolidated quarter of the On for basis, third consistent a XXXX the calculated year $XX.X compared the Adjusted an million of or company the EBITDA $XX.X increase third to of XXX. ASC period this with

X.X% the X.X% third in XXXX, a quarter down third quarter basis versus quarter on X% constant the of for from was quarter. in year prior Adjusted non-GAAP a the Diluted in to EBITDA $X.XX accounting $X.XX slightly the the of XXXX of EPS on basis. revenue increased

the third increased operating to period. third in with XXXX Aaron's increase in offset be to operating Operating business. of expenses expenses costs in stores relates in million increased Aaron's part operating progressive the costs Adjusted quarter relates the acquisition half The balance business occupancy partially underperforming in or increases the in of XXXX business to were approximately restructuring reporting, quarter write-offs Aaron's personnel split our million. to to between the increases have by and franchise stores would the and actions. progressive expenses of expenses XXXX. and year-ago evenly personnel the decreased the closure Approximately of $XX.X compared as related XXXX These of the $XX increased of of consistent

planned restructuring Cash closure company the related estimates primarily $X.X changes million, the made as reported quarter, well of third administrative cost the reconstruction quarter to of During building. to an as generated prior from activities compared at $XXX million ended million $XXX cash the XXXX the of to end activities with nine XXXX. operating September and million we XX. the quarter ended in was months $XX in for

$XXX the of at third We million dividend. and cash common through remain the $XX of approximately $XX.XX an adjusted of stock average these EBITDA the ended our less returning debt quarter, our capitalized X.X to we net conservatively than million company's price quarterly with ratio share, a to XXX,XXX shareholders of During per and repurchased shares available repurchases quarter liquidity and turns.

revised will the that the outlook have to in compared in resulting our a to EPS non-GAAP $X.XX previous XXXX, we third $X.XX outlook outlook quarter, $X.XX narrowed for of our of to in You XXXX to note primarily $X. response shortfall

seen have filed our further may to them in the we staff received Because not FTC Form time. comment disclosure any our July Finally have and with these are on to on you the we this XX-Q engaged able relating in afternoon, updated at matters, this FTC XXXX. as are from actively the we earlier XXXX April CID's

call who assist over with turn the now period. the the operator question-and-answer will I'll to

Operator

from our Thomas Capital question [Operator Brad comes first And of Instructions] Markets. KeyBanc

Brad Thomas

guys. afternoon good Hi,

Ryan Woodley

Hey Brad.

Brad Thomas

guess high I'll Maybe adjustment could bit coming some for the could. lowering from year through younger I partnerships? start making that your with the talk why if are maybe of mature little are about you're questions, you here full I on that's end range maybe a whether versus out of you're the think what Progressive. may the and Progressive? help be partners revenue seeing guidance more of of And you that couple us A

Ryan Woodley

will Happy for sales right, the to growth anticipated later opportunity and than but exactly among program when the integrate that question, Ryan and an it pace store a we would rate you awareness Brad. retail It the some obviously strong drive difficult you that's get invoicing we which the outlook in with for in timing large had the here. in is launch at environment to the happy bit time second launches into very the in takes customers. Thanks shifted of grow. of to and the the and the year quarter, We're associates It bias it quarter.

graph contributing potential And that that and future, very growth outlook currently reflecting optimistic note were essentially I there of about to we new the But and ongoing of about existing of what in doors. acceleration into prepared timing invoice leaves -- range the very both are that ability the is. we strong the productivity are we as as well remain excited locations remarks what now getting we It's to from It's drive invoice that's mentioned in quarter existing the and those seeing the we both it optimistic the about our just us fourth said. and the that in provided. but very

Brad Thomas

if today? end of missed challenging Got of question can you being question follow-up much look ask of you. some about we the you think I how margins when quarter, rolling about how all versus bit Douglas maybe have around the the in be, would a could execution business us this I of the are help part guess a the more there. And maybe you at thinking is and first initiatives profitability market Aaron's profitability that up and quarter, out

Douglas Lindsay

Brad. I than all mean, stores want as know drew say to would that, That had say marketing demand initiative. rolled lot a we sales into in it's our anticipated. I we you a I initiative you new and if more bucket execution -- Sure would put out

XX% doing number a and infrastructure is the that. very put been large also in our and a to on we've number pressure revenue which where portfolio written big delivery we We have into relative

And as from we quarter about we that. the like we've so, rebounded think feel

in have the but said collecting in of that weeks. we’re and trying the in we get delivering impact balance, remarks, signs As the but quarter, on business to in back few prepared believe have which we I and we collections felt offsetting we've evidence seen seeing my been last

recover putting and savings of through place getting that as reflective we of the have in of the put reflective back quarter So through the that. put fully the we really We balance outlook until feel outlook. some collections good the think normalized will cost about fourth and end get in back don't and we in is we've It's to year well. that

is, we've more So us. and right the customer. coming on is, really which a to broken all we to on into and our we acquire are reacting bad like feel stores productive this news short-term go the good had ways traffic collections now. through a way that's The impact convert The news it found to found

there's all nothing of really impact, I terms external would in So say it's internal.

John Robinson

and few -- what have John you've echo is us for this levers that Brad pulling would And Robinson. we've know I drive with been following Douglas the and said. to while a last struggled We've years. traffic conversion been something over

linear challenging we Douglas I'm So said, and pleased but what do right generally quarter, scale just do Douglas now find difficult as we always quarter and team pleased. the And But but these that working or choppy. be these lever changes is gotten that a really for can better, things balance. got at choppy little finding just that to remain optimistic, but keep a got hard really that's their this the third with really if to to ability to bit was overtime, experienced, them little are but the and businesses and has we change now in just

Brad Thomas

Got over. you. I'll you. Thank it turn

Operator

next question Baugh John from go Stifel. Our comes of ahead. Please

John Baugh

give of back? know business quarter quarters collections from a sense DOR still this of X.X% good was the customer in I the evening, you, increase back pace of means, could core maybe the the business ensuing of But comp gets know you count that here old in stores. don't I sort there year-over-year down Baugh The written. this if what some assuming I Thank terms know closed that in. of the to you John or and or us not

Douglas Lindsay

this is John, Sure. Douglas.

counts customer X.X%. yeah, So down

that's QX number I XXXX. think since

so deliveries I quarter this stated business. it in right So it's if starting up store end on direction at when look leading year-over-year the build at revenues just value the year-over-year, of moving right -- basis is we where you the you're reason in money. kind in number to at high low direction were in in upon the relative of remarks, last portfolio portfolio right terms you need to itself the the which but as know that customers, added good of amount portfolio per very it's to prepared be, the in actually direction. year, the a look and for up the is move my same-store to move a begins we The of quarter, if single-digit the not the QX, indicator dollar you just can collect you in same to into

collect sales this back comp good learned in really the go our are the X.X% initiatives. in and to which has is future and this at guidance probably totally comps did we lease forward. I quarter end on in we from the that however unfortunately we not outlook and caused we we as of seeing book that as X.X%. our leverage cannot we've in full, with and of would money comp for of inflation fact we quarter. We the fourth decline get begin get didn't for lower revenues the line revenue the happen That in decrease a our really believe when It the and therefore everything that store build probably we back year the line will portfolio reflective

John Baugh

out there the the then store is to write-offs the way of store waiting new e-commerce? higher being closures the Okay. program, and parse the a And between

Douglas Lindsay

we're bigger is e-com. driving businesses part that The the are That's normal new more a Sunday on than there's historically. customers become E-comp of I of and strategy originating and higher a to deals on the due to as promotional business I've we in more mentioned our it's the number be been new Yes, think customers. last new just call, expecting things.

So early charge-off it's On of a I think rate. natural top that remarks said would I the that be prepared in Q&A my of And case. higher also quarter last in we've of from the That's experiencing close months. of just temporary settle the our nine to out our this by in increase XXX end last we the year. the did stores start of

that, of top to a also which quarter this caused we new collections, but also that back marketing year. we've have in by sales introduce the and normalize of new end hit On has bit us the slip this will training, the we phase believe also of

normalizing would the move I the So the merge you're the and forward. of write-offs left e-commerce customers by a makes that outlook what then stores the think of initiative year end end sales just terms closed by is in of and marketing year normalizing the with higher of instance new and

John Baugh

that any that's guess we want range because a e-commerce still give to in loss latter to with two, So back I new would percentage? if higher to or percentage going be the settle normalized more you customer given

Douglas Lindsay

Yes.

in that we're guidance charge-offs. normalized think if got calls to back into put higher levels I previously I our we've comments have new we next think of the kind for but going and you made year, our look on

John Baugh

last I Ryan, debt and guess line? in think of charge-off was expense for number, you I gave lot or Okay. one not see And about quickly. I real did hear but that

Ryan Woodley

as provided gross are -- similar versus and these we previously for was remarks. again year, debt in I year-over-year levels didn't revenue Bad lease it of give ranges the that so pool XX.X very performance. was prepared last Bad XX XX.X a with consistent percent debt

So what there. said we pleased with

John Baugh

be XXXX preliminary kind progressive see get and we high some, And the Thank we specific year? impacting any color new you. lows then in accounts, around on the how of a finally, next how to thoughts terms of, will

Ryan Woodley

will on XXXX We more nothing John. our but that be now, expect that in outlook

John Baugh

you. thank Okay, Good luck.

Ryan Woodley

you. Thank

Operator

go comes America Please question Jason of of Bank from ahead. Merrill Lynch. Our Haas next

Jason Haas

generally thinking Progressive for ask specific about larger wanted the talk you're be any EBITDA shift these the Thanks retail about would partners? takes Great. could I of partners speak that won't I retail the question. about, to margins great? if as these you some partner, larger you of to business know puts and but mix taking just Thanks. how to

John Robinson

Sure.

happy So to.

EBITDA that profitability for be range the as continue provided to that provided of how XX% So, the expect guide some between end the forward. about context overall higher true that both on as said be obviously in able are and an it's book profitability goalposts, a annual that range XX% existing, well within we're the the a as the for past our goalposts previously towards we this the we that profile to expected in business of trending the we going that grows range and That's within to and year should year that business well think an we overtime. live performance and existing

Jason Haas

more you Great, it's follow-up, need with? a a thanks. write-offs talk line? Aaron's comfortable Thanks. any anything And get for it guess, more OpEx to the then level business. in what's hours Is additional to needed stores line about and managing get that over that as labor whether you're how Could investment jumping like back there is operations? with a Or the you're to in that or number I or trying back changing just

Douglas Lindsay

Yeah. you question. asking for the Thank

was really So The big and do it effort. a saw such in the proud and thousands team on people trained again for opportunity a a driving there big of was to conversion. we’re our growth we We that. part was effort it huge of

can coming We that more And store. have about proficient more customer sales we just convert our the to and convert process and ourselves, on traffic. system. some that traffic, only into traffic, strain We not put traffic disciplined but unfortunately our proved I to we could think the need drive be we

mode right the collection stores. the normalize stores We're in demand generation just is what comes would a and have but you our when what levels, out and labor will a in there and finite correction figure to process mix balance expect now this iterative an offset really It's need be that. an of source we to on I to back deliveries collections in

and able pilots Long-term, really we order do to in I back disciplines we good collections when see balance that. put returning We had need in to to first which that place go and a and exciting. to growth just really rolled stabilized the were the out business, in is sustained we delivery this we thing

doing we're proficient just What get to more have. we staff today the actually is training management performance and in trying with we're

have high we’re collecting same we're balance. and driving We are there out in in level one only stores collected at them to from the deliveries learning working a two of about And really with our well that past them. the stores number and to that things are of the that back try get doing

if our a will of necessary, add the We we've been choice, oversight selectively last what about first but that’s in labor lot transformation. over of is and this, not accountability. long-term, just flows we And think our and business into years there's practices few to management guys opportunity lot a talking our which you ultimately

What how sign to customer collect to things and forward the customer, of take we roll so to we customers and do we're our from do and do speak that's to and customer, very and we beginning that do more make account. ultimately can stores culture the both free task we’re for we the efficient how these can conversion opportunities customer, out is deliver number get of to do everything up well. with the the that the focus and going If stores, we as do out how up on labor trying selling decision can time serve

Jason Haas

sense. makes That you. Thank Great.

Operator

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

Anthony Chukumba

question. my taking for Thanks

follow-up a you of just answered. the kind questions just question first to my So

to finite too have It had make They in -- deliveries mean, a to So of like make. and bit your this make put of this. it made sounds just clearly you suddenly you a or I hours. much new sure little lot I on conversion to like focusing understand employees, store marketing are to better, probably sounds a training. to want there's got they number sales

want it if spend So they shifted uptime collections. to some

make understand first to I just I all, right. So of that sure want

stores? then our seem that be of you aggressive of, And to know some is with tested I should which more wouldn't you second that on collections, centralized concept that have imply something

Douglas Lindsay

Yeah, Anthony.

in the and it, all, have to way of able you store just of some because exactly we it put is we were resources and First the managers our articulated a We employees superstar do we pressure right. had stores, finite on some others weren’t. lot

absolutely You're right.

is collections it opportunities is recurring are customers to opportunity. transact and autopay one us it making people would just or for easier payments. be Centralized our with and our Other whether which

with having we customer, the We taking of that. do model out labor are just the strategy contact making a better

we terms centralized test In of collections, that. to continue

in we stores it centralizing a we we've the learned opportunity. that's continuing one the And before what platforms XX do. collections centralizing efficient leverage thing road. have are We can the and even that is more down of build in stores be we in huge processes can believe We through labor our to

and we're So on. that's working absolutely that's on our road map what

Anthony Chukumba

terms in follow-up, Okay. question. That's just then a And again helpful. once of it's follow-up other from

need large going will from and because they’re credit customers that of given be higher more EBITDA will adding So that always to been is in terms but XX%range, of lower, the sort are you margin cash. the these the Progressive in to -- understanding sort of generally seamless the going XX% forward, I be partners long know margin probably that guidance these gross the volume de

adding sure understood XX% be margin Progressive wouldn't the these if some be really large you But higher XX% was partners? SG&A with capital to the leverage up you're thus I time, volume a it think despite to of and of XX% of leverage picking to why would it guess by long-term XX% just that that just sort the so I I little going I would improve the would EBITDA over and to of given surprised make kind is kind

Ryan Woodley

Thanks question for the Anthony.

think and profit optimizing will maintaining harvesting. bias be profitability large very believe holds as this job than excellent that I are I that toward of our that long opportunities And an done we underserved the in doing team invest a pursuing. be continue think We growth, to of market yet to can our And market tackled as true, while that. there is in for lot rather has

our systems sourcing to teams. which evolved help at look our the and scale. to and at the teams periods, to invested in our our just We've a over consumers and and business and our you amount done look pace partner relationships field this scalability, we've product it’s technology our lot If prepare tremendous at offering a

that be pleased I'm long result growth continues that we're what seeing as And that is is true. as of and all investment scaling to a

I we sustaining we the profitability than grow toward period. profitability in it. think be trying maximize our current bias how about as to will think That's rather

Anthony Chukumba

Got it.

and – clarification that. one on just Sorry last

take that is to about and reinvest pick XX% that try So, to new to and incremental the going in white up more trying margins to for to terms safe look are of partners it is growth on said like above fair these to be that a going XX%, way you're whales, to say, you it? think optimize large but

Ryan Woodley

opportunity, large remains. this just very No. globally to we I but XX% opportunity we've about say our EBITDA we be attempting to bias just market, large very a the don't portfolio, that we I in that pursuing to say XX% think pursue while one as underserved any that. maintain and targeted margins across to specific profitability, will continue about the invest think wouldn't would business to

Anthony Chukumba

it. That's Got very you. helpful. Thank

Ryan Woodley

you. Thank

Operator

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

Kyle Joseph

Can like much those? very you quarter. the segment for of pipeline it us sense costs in size Thanks I Progressive had conversion -- taking wanted give third of look at Afternoon some the my guys. questions. you any the

in lag the terms the what's new partnerships then timing? of the the expenses revenues between of upfront part from be And versus question second would

John Robinson

support think those year-over-year made teams all our of the product technology as reflective in getting Yes. in proceeds existing you those that then retail and and XX new we've to retailers definition in volume. And the investment growing our grew the can bps discussed pipeline, well their being as past invoice as relationships, by as investment associates about relationships. SG&A about we've by of which and just

So, always we front-loaded it’s as invoice opportunities then so rolling necessarily in and launches. think them investment will and revenue over in those follow time about those initial growing out consequently

Kyle Joseph

apologize. for us know guys credit, about there you underwriting I with your areas for sort underwriting? refining are you it. day, given -- of goal then refining outlook goalpost know guys talking you and well within can give every I kind in Ryan, field partnerships. Got but And these you credit terms long-term new just conversions, your sense other any new Progressive of for potential of or of But are pipeline I refining Is the a sort said

Ryan Woodley

revise We full within how current here goalposts have we performing today. those results. are are to delivering with the feel good Again, to the well year we look as XXXX sit performance pleased about plans we goalpost no pools as the and

large our And a algorithms. number in folks very hard have team constantly of evolving working again got decisioning

think lease doing it success those they're environment doing ongoing the I phenomenal and think efforts very metrics performance consistency our write-offs they're in across the with and in are expense. of their job in complex portfolio and mix efforts debt I evidenced a -- their bad the

Kyle Joseph

if me last And don't Sure. Thanks. one might. you from

what over become? you're and Given that the this time and I'm Progressive with term all merchandise wondering the growth longer ultimately, to and the kind how guys just question. about guys has new have Progressive a just and thinking growth that going returns you given the landed are size merchandise you do partnerships of is

Ryan Woodley

material we've we're it's we've the goes We're the business the and team years verticals. logistics launched in in that quite recently bit credits sort in currently to incorporated launches verticals that of business particles all well. our Over we that to and got team again the reverse operations of don't process the manages that have so for departure many in kind well-defined years, in seeing at business the But of had we've opportunities our as that for growing that we been managing from experience that to we of done These testament doing business as look the a far reached trends as for logistics. usual established the well. of processes growth reverse as due field expect we've the there that

Kyle Joseph

question. very it. Thanks answering much for Got my

Operator

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

Bill Chappell

Thanks. Good afternoon.

Ryan Woodley

Hello.

Bill Chappell

put -- issues, you and now by out confidence are correction sign to there from things store when that what started give plan to guess trying turn recognized days starting had to the will year-end? it in of I you've normalized on XX by Douglas, kind calendar maybe guess just that you more I understand and be place you when inter-quarter,

Douglas Lindsay

Sure.

timeline. bit little a give Just of

of at end lift train seeing began to the across We we finished May in and and thousands began July revenue So, thousand of the call it stores employees. up and our early June in stores August. some-odd

started of the We of some had seen time. on, collections. pilot our seeing we end July, early in softening normalized Towards some this in but it over

was over seeing thought our in normalizing pattern normal batch time. it that we So, we're just pilot a

the we place people dealing regional pilot beginning form but just quarter, resources put framework towards some already underperforming more In stores. of it had quarter. in not we start forward labor of and realize, – out the drilling needed stores. I'm normalizing of to was fall we also of end the applying fallen more when sort would lines the beginning it overtime end towards October in project had, that rebalancing were who out the October. with acquired more the beginning with the with into stores from we the had say of initiative of require resources, dealing of as to let We'll And a began the account We I August, – to down of more sorry

into the we week right In is to are improvement some carried what began moving first the that's say confidence see us November, October collections that, which and in in to of we gives direction. over

Bill Chappell

should – two I this closest I the you've customers of for that maybe pipeline, change proof or Got basis? terms is Progressive a we the does expanded does others just the year. now testing that of really have the two that velocity case-by-case is others that it. sizable competitor concept are Ryan of And mean then in doing looking still on I now do are guess side of have that it mean, to kind it

Ryan Woodley

Good question. now. time We've for had what we roster some consider of partner to strong be a quite marquee

that these and of an very partners that the distinguished over about onboard we've continued seen a it's we've are results have We've retailers, as business. of to very they nice the and driven list to large the bit evolution together. I it's and of their in proud we add to years, developed think spoken relationships We a virtuous cycle

so the you profile about and the sort the ones increase your first those recently multiyear scale as of the future feature we're definitely conversion. business. optimistic very talked the pipeline, our for velocity say of about, growth to I that been pipeline additions represents have significant increase think conversations of very helped, are the for Obviously, those we it's and platform,

other about also opportunities pipeline. that the in are excited We're the

underserved And it, to but mentioned and is very market previously, it that a with are That You very team opportunities they the pleased are the progressing is through is and and opportunity. market competitive are that said, it working making. hard have it progress convert large still I for I'm a the heard them. continue – we that we pipeline in

Bill Chappell

you. Got it. Thank

Operator

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

John Robinson

Thank and for you. for mission dedication call today's our I franchisees us future customers. optimism hope the about to providing products have retail we for I'd that very to And come associates, their with joining thank from like Thank have our much you to our same our the and away today. prospects you high-quality partners business.

Operator

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

disconnect. now may You

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.