PROG Holdings Inc

Previous wording

The following discussion should be read in conjunction with the condensed consolidated financial statements as of June 30, 2024 and December 31, 2023, and for the three and six months ended June 30, 2024 and 2023, including the notes to those statements, appearing elsewhere in this report. We also suggest that management’s discussion and analysis appearing in this report be read in conjunction with the management’s discussion and analysis and consolidated financial statements included in our 2023 Annual Report.

Current wording

The following discussion should be read in conjunction with the condensed consolidated financial statements as of September 30, 2024 and December 31, 2023, and for the three and nine months ended September 30, 2024 and 2023, including the notes to those statements, appearing elsewhere in this report. We also suggest that management’s discussion and analysis appearing in this report be read in conjunction with the management’s discussion and analysis and consolidated financial statements included in our 2023 Annual Report.

Previous wording

Four Technologies, Inc. ("Four") is a Buy Now, Pay Later ("BNPL") company that allows shoppers to pay for merchandise through four interest-free installments. Four’s proprietary platform capabilities and its base of customers and retailers expand PROG Holdings’ ecosystem of financial technology offerings by introducing a payment solution that further diversifies the Company's consumer financial technology offerings. Shoppers use Four to purchase furniture, clothing, electronics, health and beauty products, footwear, jewelry, and other consumer goods from retailers across the United States. Four is not expected to be a reportable segment in 2024 as its financial results are not expected to be material to the Company's consolidated financial results in 2024. Four's financial results are reported within "Other" for segment reporting purposes.

Current wording

Four Technologies, Inc. ("Four") is a Buy Now, Pay Later ("BNPL") company that allows shoppers to pay for merchandise through four interest-free installments. Four’s proprietary platform capabilities and its base of customers and retailers expand PROG Holdings’ ecosystem of financial technology offerings by introducing a payment solution that further diversifies the Company's consumer financial technology offerings. Shoppers use Four to purchase furniture, clothing, electronics, health and beauty products, footwear, jewelry, and other consumer goods from retailers across the United States. Four is not expected to be a reportable segment in 2024 as its financial results are not expected to be significant to the Company's consolidated financial results in 2024. Four's financial results are reported within "Other" for segment reporting purposes.

Previous wording

During the first half of 2024, the Company's lease application volume increased due to the tightening of the credit supply above Progressive Leasing. This tightening contributed to a favorable impact on our Progressive Leasing Gross Merchandise Volume ("GMV") in the second quarter of 2024 when compared to the same period in 2023. Despite the increasing in demand for our lease-to-own offerings, the Company continues to operate in a challenging macroeconomic environment. We believe the higher year-over-year inflation in 2023, which remained elevated in 2024, particularly in housing, food, and gas costs, has disproportionately negatively affected the customers we serve and has resulted in an unfavorable impact on our GMV during 2023 and 2024. While the rate of increase in inflation has slowed, the cost of living remains significantly higher than it was prior to the COVID-19 pandemic, and we believe inflation continues to present a challenge to our customers. We believe the significant increase in inflation, elevated interest rates for extended periods, and fears of a possible recession have also unfavorably impacted consumer confidence within our customer base, resulting in a decrease in demand for the types of merchandise offered by many of our key national and regional POS partners. In light of these macroeconomic challenges and to align the cost structure of our business with our near-term revenue outlook, the Company executed a number of cost reduction initiatives during 2022, 2023 and the first and second quarters of 2024 to drive efficiencies and right-size variable costs, while attempting to minimize the negative impact on growth-related initiatives.

Current wording

During the first nine months of 2024, the Company's lease application volume increased due to progress in executing our strategic growth initiatives and the tightening of the credit supply above Progressive Leasing. This tightening contributed to a favorable impact on our Progressive Leasing Gross Merchandise Volume ("GMV") in the third quarter of 2024 when compared to the same period in 2023. Despite the increase in demand for our lease-to-own offerings, the Company continues to operate in a challenging macroeconomic environment. We believe the higher year-over-year inflation in 2023, which remained elevated in 2024, particularly in housing, food, and gas costs, has disproportionately negatively affected the customers we serve and has resulted in an unfavorable impact on our GMV during 2023 and 2024. While the rate of increase in inflation has slowed, the cost of living remains significantly higher than it was prior to the COVID-19 pandemic, and we believe inflation continues to present a challenge to our customers. We believe the significant increase in inflation and elevated interest rates for extended periods have also unfavorably impacted consumer confidence within our customer base, resulting in a decrease in demand for the types of merchandise offered by many of our key national and regional POS partners. In light of these macroeconomic challenges and to align the cost structure of our business with our near-term revenue outlook, the Company executed a number of cost reduction initiatives beginning in 2022, and continuing into 2024, to drive efficiencies and right-size variable costs, while attempting to minimize the negative impact on growth-related initiatives.

Previous wording

During the three and six months ended June 30, 2024, the Company incurred $0.1 million and $0.2 million, respectively, for costs related to the cybersecurity incident, resulting in aggregate expenses of $3.1 million since the incident occurred. These costs related primarily to third-party legal and consulting services and credit monitoring services for Progressive Leasing's customers and employees that were impacted and are included within professional services expense as a component of operating expenses in the condensed consolidated statements of earnings.

Current wording

During the three and nine months ended September 30, 2024, the Company incurred $0.1 million and $0.3 million, respectively, for costs related to the cybersecurity incident, net of insurance proceeds, resulting in aggregate expenses of $3.2 million since the incident occurred. These costs related primarily to third-party legal and consulting services and credit monitoring services for Progressive Leasing's customers and employees that were impacted and are included within professional services expense as a component of operating expenses in the condensed consolidated statements of earnings.

Previous wording

•We reported revenues of $592.2 million, which was relatively flat compared to the $592.8 million we reported for the second quarter of 2023.

Current wording

•We reported revenues of $606.1 million, which was a 4.0% increase compared to the $582.9 million we reported for the third quarter of 2023.

Previous wording

•GMV increased by $33.3 million for Progressive Leasing and decreased by $4.1 million for Vive in the second quarter of 2024, compared to the same period in the prior year. The increase in GMV for Progressive Leasing was due to a combination of: (i) positive customer responses to our strategic initiatives, such as e-commerce integrations with our POS partners and direct-to-consumer marketing, and (ii) increasing demand for our lease-to-own offering arising out of a tightening of the credit supply above Progressive Leasing, which resulted in an increase in lease applications when compared to the same period in the prior year. The decrease in GMV for Vive was due to a decline in customer demand for products offered by certain Vive POS partners, resulting in fewer loan originations. GMV from our Other operations increased by $41.5 million, due to an increase in Four loan originations in the second quarter of 2024 compared to the second quarter of 2023.

Current wording

•GMV increased by $47.5 million for Progressive Leasing and increased by $3.5 million for Vive in the third quarter of 2024, compared to the same period in the prior year. The increase in GMV for Progressive Leasing was due to a combination of: (i) positive customer responses to our strategic initiatives, such as e-commerce integrations with our POS partners and direct-to-consumer marketing, and (ii) increasing demand for our lease-to-own offering arising out of a tightening of the credit supply above Progressive Leasing, which resulted in an increase in lease applications when compared to the same period in the prior year. The increase in GMV for Vive was due to the expansion of certain product offerings to a wider consumer base resulting in more loan originations. GMV from our Other operations increased by $42.4 million, due to an increase in Four loan originations in the third quarter of 2024 compared to the third quarter of 2023.

Previous wording

•Earnings before income taxes decreased to $48.3 million compared to $52.0 million in the same period in 2023. The decrease was primarily driven by an increase in the provision for loan losses within Other operations, higher provision for lease merchandise write-offs, and higher restructuring costs. These decreases to earnings before income taxes were partially offset by lower personnel costs resulting from our cost reduction initiatives.

Current wording

•Earnings before income taxes decreased to $41.8 million compared to $48.1 million in the same period in 2023. The decrease was primarily driven by higher provision for lease merchandise write-offs and an increase in the provision for loan losses. These decreases to earnings before income taxes were partially offset by lower personnel costs resulting from our cost reduction initiatives.

Previous wording

Progressive Leasing's GMV was higher when compared to the second quarter of 2023 due to a combination of: (i) positive customer responses to our strategic initiatives such as, e-commerce integrations with our POS partners and direct-to-consumer marketing, and (ii) increasing demand for our lease-to-own offering arising out of a tightening of the credit supply above Progressive Leasing, which resulted in an increase in lease applications when compared to the same period in the prior year. E-commerce channels generated 14.4% of Progressive Leasing's GMV in the second quarter of 2024 compared to 15.0% in the second quarter of 2023. The decrease in Vive's GMV was primarily a result of a decline in customer demand for products offered by certain Vive POS partners, resulting in fewer loan approvals. GMV from Other increased primarily due to an increase in Four loan originations.

Current wording

Progressive Leasing's GMV was higher when compared to the third quarter of 2023 due to a combination of: (i) positive customer responses to our strategic initiatives, such as e-commerce integrations with our POS partners and direct-to-consumer marketing, and (ii) increasing demand for our lease-to-own offering arising out of a tightening of the credit supply above Progressive Leasing, which resulted in an increase in lease applications when compared to the same period in the prior year. E-commerce channels generated 16.6% of Progressive Leasing's GMV in the third quarter of 2024 compared to 14.8% in the third quarter of 2023. The increase in Vive's GMV was a result of an expansion of certain product offerings to a wider consumer base resulting in more loan originations. GMV from Other increased primarily due to an increase in Four loan originations.

Previous wording

The number of customers for Progressive Leasing was relatively flat compared to the prior year. The decrease in Vive customers was primarily due to a reduction in loan originations compared to the same period in the prior year. The increase in the number of customers for Other was the result of continued growth in our other strategic businesses.

Current wording

The number of customers for Progressive Leasing was slightly higher compared to the prior year. This increase is due to increasing demand due to our strategic initiatives and tightening of the credit supply above Progressive Leasing. The increase in Vive customers was primarily due to an increase in loan originations compared to the same period in the prior year. The increase in the number of customers for Other was the result of continued growth in our other strategic businesses.

Previous wording

Key Components of Earnings Before Income Tax Expense

Current wording

Key Components of Earnings Before Income Tax (Benefit) Expense

Previous wording

In this MD&A section, we review our condensed consolidated results. For the three and six months ended June 30, 2024 and the comparable prior year periods, some of the key revenue, cost and expense items that affected earnings before income taxes were as follows:

Current wording

In this MD&A section, we review our condensed consolidated results. For the three and nine months ended September 30, 2024 and the comparable prior year periods, some of the key revenue, cost and expense items that affected earnings before income taxes were as follows:

Previous wording

The decrease in Progressive Leasing revenues was primarily the result of a smaller lease portfolio at the beginning of the second quarter of 2024 as compared to the second quarter of 2023, due to a decrease in customer demand for many of the products offered by our POS partners, partially offset by an increase in GMV during the second quarter of 2024 along with an increase in the customers exercising early purchase options. Vive revenues declined primarily due to a smaller loan portfolio in the second quarter of 2024 as compared to the second quarter of 2023, due to a decrease in customer demand for products offered by certain Vive POS partners. The increase to Other revenue was primarily driven by an increase in Four's GMV as compared to the second quarter of 2023.

Current wording

The increase in Progressive Leasing revenues was primarily the result of the 11.6% increase in gross merchandise volume for the third quarter of 2024 as compared to the third quarter of 2023, due to an increase in customer demand for our lease-to-own offerings. Vive revenues declined primarily due to a smaller loan portfolio entering the third quarter of 2024 as compared to the third quarter of 2023, due to a decrease in customer demand for products offered by certain Vive POS partners during 2023 and the first part of 2024. The increase to Other revenue was primarily driven by an increase in Four's GMV as compared to the third quarter of 2023.

Previous wording

Information about certain significant components of operating expenses for the second quarter of 2024 as compared to the second quarter of 2023 is as follows:

Current wording

Information about certain significant components of operating expenses for the third quarter of 2024 as compared to the third quarter of 2023 is as follows:

Previous wording

2 Sales acquisition expense includes vendor incentives and rebates to POS partners, external sales commissions, amortization of initial direct costs and amounts paid to various POS partners to be their exclusive provider of lease-to-own solutions.

Current wording

2 Sales acquisition expense includes vendor incentives and rebates to POS partners (excluding retailer marketing and development initiatives), external sales commissions, amortization of initial direct costs and amounts paid to various POS partners to be their exclusive provider of lease-to-own solutions.

Previous wording

4 Progressive Leasing's sales, general and administrative expense was $74.4 million and $78.3 million during the three months ended June 30, 2024 and 2023, respectively.

Current wording

4 Progressive Leasing's sales, general and administrative expense was $76.5 million and $77.2 million during the three months ended September 30, 2024 and 2023, respectively.

Previous wording

Personnel costs decreased$5.1 million compared to thesame period in 2023, primarily due to a $4.9 million decrease at Progressive Leasing attributable to its reduction in the number of employees during the second half of 2023 and the first quarter of 2024 as part of its restructuring and cost cutting activities.

Current wording

Personnel costs decreased$4.5 million compared to thesame period in 2023, primarily due to a $3.9 million decrease at Progressive Leasing attributable to its reduction in the number of employees during the second half of 2023 and the first quarter of 2024 as part of its restructuring and cost cutting activities. Personnel costs also decreased $0.4 million and $0.2 million at Vive and our other strategic businesses, respectively.

Previous wording

The provision for loan losses increased $3.2 million compared to the same periodin 2023, due to continued growth in loan activity at Four and our other strategic businesses.

Current wording

The provision for loan losses increased $4.6 million compared to the same periodin 2023, primarily due to continued growth in loan activity at Four and our other strategic businesses also including$0.9 million at Vive due to higher delinquencies compared to the same period in 2023.

Previous wording

Depreciation of lease merchandise. Depreciation of lease merchandise was flat during the three months ended June 30, 2024 compared to the same period in 2023. As a percentage of lease revenues and fees, depreciation of lease merchandise increased slightly to 67.4% from 67.0% in the prior year quarter, primarily due to a normalized level of early buyouts during the three months ended June 30, 2024 as compared to a relatively lower level of early buyouts during the same period in 2023.

Current wording

Depreciation of lease merchandise. Depreciation of lease merchandise increased by 5.0% during the three months ended September 30, 2024 compared to the same period in 2023. The increase was primarily due to growth in the Company's lease portfolio, resulting from positive customer responses to our strategic initiatives and increasing demand for our lease-to-own offering. As a percentage of lease revenues and fees, depreciation of lease merchandise increased to 68.8% from 67.7% in the prior year quarter, primarily due to a normalized level of early buyouts during the three months ended September 30, 2024 as compared to a relatively lower level of early buyouts during the same period in 2023.

Previous wording

Provision for lease merchandise write-offs. The provision for lease merchandise write-offs increased $2.8 million compared to the same period in 2023. The provision for lease merchandise write-offs as a percentage of lease revenues increased to 7.7% during the second quarter of 2024 from 7.1% in the same period in 2023. The increase was due to higher write-offs in the second quarter of 2024 compared to the same period in 2023, resulting from our lease portfolio performance returning to pre-pandemic trends. Given the significant economic uncertainty resulting from persistent inflationary pressures and increased interest rates for an extended period, and the potential effects of such developments on Progressive Leasing's POS partners, customers, and business going forward, a high level of estimation was involved in determining the allowance as of June 30, 2024. Actual lease merchandise write-offs could differ materially from the allowance for those write-offs.

Current wording

Provision for lease merchandise write-offs. The provision for lease merchandise write-offs increased $7.8 million compared to the same period in 2023. The provision for lease merchandise write-offs as a percentage of lease revenues increased to 7.7% during the third quarter of 2024 from 6.6% in the same period in 2023. The increase was due to higher write-offs in the third quarter of 2024 compared to the same period in 2023, resulting from our lease portfolio performance returning to pre-pandemic trends. Given the significant economic uncertainty resulting from persistent inflationary pressures and increased interest rates for an extended period, and the potential effects of such developments on Progressive Leasing's POS partners, customers, and business going forward, a high level of estimation was involved in determining the allowance as of September 30, 2024. Actual lease merchandise write-offs could differ materially from the allowance for those write-offs.

Previous wording

Information about our earnings before income tax expense by reportable segment is as follows:

Current wording

Information about our earnings before income tax (benefit) expense by reportable segment is as follows:

Previous wording

The loss before income tax expense within Other primarily relates to losses from our other strategic operations. Factors impacting the change in earnings before income taxes for each reporting segment are discussed above.

Current wording

The loss before income tax (benefit) expense within Other primarily relates to losses from our other strategic operations. Factors impacting the change in earnings before income taxes for each reporting segment are discussed above.

Previous wording

Income tax expense decreased to $14.6 million for the three months ended June 30, 2024 compared to $14.8 million in the prior year comparable period. The effective income tax rate for the three months ended June 30, 2024 was 30.1% compared to 28.4% for the same period in 2023. The increase in the effective tax rate was primarily driven by higher discrete income tax expense recognized for stock-based compensation.

Current wording

Income tax (benefit) expense for the three months ended September 30, 2024 was a benefit of $42.1 million compared to an expense of $13.1 million in the prior year comparable period. The effective income tax rate was (100.6)% for the three months ended September 30, 2024 compared to 27.2% for the same period in 2023. The income tax benefit for the three months ended September 30, 2024 was due to the $53.6 million non-cash reversal of an uncertain tax position related to Progressive Leasing.

Previous wording

The slight decrease in Progressive Leasing revenues was primarily the result of having a smaller lease portfolio at the beginning of the period as compared to the same period in the prior year. The decrease was partially offset by the increase in GMV at Progressive Leasing for the six months ended June 30, 2024, as compared to the same period in the prior year. Vive revenues decreased as compared to the six months ended June 30, 2023 due to a decrease in demand for products offered by certain Vive POS Partners. The increase to Other revenue was primarily driven by a 272.0% increase in Four's GMV as compared to the same period in 2023.

Current wording

The slight decrease in Progressive Leasing revenues was primarily the result of having a smaller lease portfolio at the beginning of the period as compared to the same period in the prior year. The decrease was partially offset by the increase in GMV at Progressive Leasing for the nine months ended September 30, 2024, as compared to the same period in the prior year. Vive revenues decreased as compared to the nine months ended September 30, 2023 due to a decrease in demand for products offered by certain Vive POS Partners. The increase to Other revenue was primarily driven by a 249.1% increase in Four's GMV as compared to the same period in 2023.

Previous wording

Information about certain significant components of operating expenses for the six months ended June 30, 2024 as compared to the six months ended June 30, 2023 is as follows:

Current wording

Information about certain significant components of operating expenses for the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023 is as follows:

Previous wording

2 Sales acquisition expense includes vendor incentives and rebates to POS partners, external sales commissions, amortization of initial direct costs and amounts paid to various POS partners to be their exclusive provider of lease-to-own solutions.

Current wording

2 Sales acquisition expense includes vendor incentives and rebates to POS partners (excluding retailer marketing and development initiatives), external sales commissions, amortization of initial direct costs and amounts paid to various POS partners to be their exclusive provider of lease-to-own solutions.

Previous wording

4 Progressive Leasing's sales, general and administrative expense was $151.0 million and $154.2 million during the six months ended June 30, 2024 and 2023, respectively.

Current wording

4 Progressive Leasing's sales, general and administrative expense was $227.4 million and $231.4 million during the nine months ended September 30, 2024 and 2023, respectively.

Previous wording

The decrease in personnel costs of $7.5 million was driven by a decrease of $7.4 million at Progressive Leasing attributable to its reduction in the number of employees during the second half of 2023 and first quarter of 2024 as part of its restructuring and cost cutting initiatives.

Current wording

The decrease in personnel costs of $12.0 million was driven by a decrease of $11.3 million at Progressive Leasing attributable to its reduction in the number of employees during the second half of 2023 and first quarter of 2024 as part of its restructuring and cost cutting initiatives. Personnel costs at Vive also decreased by $0.8 million compared to the same period in 2023.

Previous wording

Professional services increased $3.0 million compared to the same period in 2023, primarily due to higher technology-related costs. Professional services in the prior year period were also impacted by the benefit of $0.5 million of regulatory insurance recoveries that were received during the first quarter of 2023.

Current wording

Professional services increased $4.5 million compared to the same period in 2023, primarily due to higher technology-related costs. Professional services in the prior year period were also impacted by the benefit of $0.5 million of regulatory insurance recoveries that were received during the first quarter of 2023.

Previous wording

The provision for loan losses increased $5.6 million compared to the same period in 2023. The increase is primarily the result of a $5.1 million increase in the provision for loan losses for our Other operations, due to continued growth of our other strategic operations and Four. The provision for loan losses at Vive also increased $0.5 million due to higher delinquencies and write-offs compared to the same period in 2023.

Current wording

The provision for loan losses increased $10.2 million compared to the same period in 2023. The increase is primarily the result of an $8.8 million increase in the provision for loan losses for our Other operations, due to continued growth of our other strategic operations and Four. The provision for loan losses at Vive also increased $1.4 million due to higher delinquencies compared to the same period in 2023.

Previous wording

Restructuring expense increased $19.2 million due to additional restructuring activities during thesix months ended June 30, 2024 compared to the same period in 2023. For the six months ended June 30, 2024, restructuring costs included$7.8 million associated with the early termination of an independent sales agent agreement for Progressive Leasing,$2.0 million associated with the early termination of a third party vendor agreement within other strategic operations,$6.0 million of operating lease right-of-use asset and other fixed asset impairment charges related to the reduction of Progressive Leasing office space, and$5.0 millionof employee severance for Progressive Leasing and Other operations. For the same period in 2023, restructuring costs primarily related to employee severance within Progressive Leasing.

Current wording

Restructuring expense increased $18.9 million due to additional restructuring activities during thenine months ended September 30, 2024 compared to the same period in 2023. For the nine months ended September 30, 2024, restructuring costs included $7.8 million associated with the early termination of an independent sales agent agreement for Progressive Leasing, $2.0 million associated with the early termination of a third party vendor agreement within other strategic operations, $6.0 million of operating lease right-of-use asset and other fixed asset impairment charges related to the reduction of Progressive Leasing office space, and $5.0 million of employee severance for Progressive Leasing and Other operations. For the same period in 2023, restructuring costs primarily related to employee severance within Progressive Leasing.

Previous wording

Provision for lease merchandise write-offs. The provision for lease merchandise write-offs increased $7.6 million when compared to the same period in 2023. The provision for lease merchandise write-offs as a percentage of lease revenues increased to 7.3% during the six months ended June 30, 2024 from 6.5% in the same period in 2023. The increase in the provision was a result of higher write-offs in the current year period, compared to the same period in the prior year, due to our lease portfolio performance returning to pre-pandemic trends. Given the significant economic uncertainty resulting from persistent inflationary pressures and increased interest rates for an extended period, and the potential effects of such developments on Progressive Leasing's POS partners, customers, and business going forward, a high level of estimation was involved in determining the allowance as of June 30, 2024. Actual lease merchandise write-offs could differ materially from the allowance for those write-offs.

Current wording

Provision for lease merchandise write-offs. The provision for lease merchandise write-offs increased $15.4 million when compared to the same period in 2023. The provision for lease merchandise write-offs as a percentage of lease revenues increased to 7.4% during the nine months ended September 30, 2024 from 6.5% in the same period in 2023. The increase in the provision was a result of higher write-offs in the current year period, compared to the same period in the prior year, due to our lease portfolio performance returning to pre-pandemic trends. Given the significant economic uncertainty resulting from persistent inflationary pressures and increased interest rates for an extended period, and the potential effects of such developments on Progressive Leasing's POS partners, customers, and business going forward, a high level of estimation was involved in determining the allowance as of September 30, 2024. Actual lease merchandise write-offs could differ materially from the allowance for those write-offs.

Previous wording

Information about our earnings before income tax expense by reportable segment is as follows:

Current wording

Information about our earnings before income tax (benefit) expense by reportable segment is as follows:

Previous wording

The loss before income tax expense within Other primarily relates to losses from our other strategic operations. Factors impacting the change in earnings before income tax expense for each reporting segment are discussed above.

Current wording

The loss before income tax (benefit) expense within Other primarily relates to losses from our other strategic operations. Factors impacting the change in earnings before income tax (benefit) expense for each reporting segment are discussed above.

Previous wording

•Cash and cash equivalents increased $94.7 million to $250.1 million during the six months ended June 30, 2024. For additional information, refer to the "Liquidity and Capital Resources" section below.

Current wording

•Cash and cash equivalents increased $66.3 million to $221.7 million during the nine months ended September 30, 2024. For additional information, refer to the "Liquidity and Capital Resources" section below.

Previous wording

•Lease merchandise, net of accumulated depreciation and allowances, decreased $69.8 million due primarily to a 17.0% decrease in Progressive Leasing's GMV for the second quarter of 2024 as compared to the fourth quarter of 2023.

Current wording

•Lease merchandise, net of accumulated depreciation and allowances, decreased $79.0 million due primarily to a 16.6% decrease in Progressive Leasing's GMV for the third quarter of 2024 as compared to the fourth quarter of 2023.

Previous wording

•Income tax receivable decreased $22.6 million primarily due to current tax expense, partially offset by net tax payments made during the six months ended June 30, 2024.

Current wording

•Income tax receivable decreased $22.0 million primarily due to current tax expense, partially offset by net tax payments made during the nine months ended September 30, 2024.

Previous wording

As of June 30, 2024, the Company had $250.1 million of cash, $350.0 million of availability under the Revolving Facility, and $600.0 million of indebtedness.

Current wording

As of September 30, 2024, the Company had $221.7 million of cash, $350.0 million of availability under the Revolving Facility, and $600.0 million of indebtedness.

Previous wording

Cash provided by operating activities was $191.1 million and $205.4 million during the six months ended June 30, 2024 and 2023, respectively. The $14.3 million decrease in operating cash flows was primarily due to a $32.8 million increase in cash paid for leased merchandise and $12.9 million decrease in cash received on accounts receivable. Operating cash flows were positively impacted by a $40.9 million decrease in cash paid for taxes when compared to the same period in 2023. Other changes in cash provided by operating activities are discussed above in our discussion of results for the six months ended June 30, 2024.

Current wording

Cash provided by operating activities was $223.0 million and $292.5 million during the nine months ended September 30, 2024 and 2023, respectively. The $69.5 million decrease in operating cash flows was primarily due to a $78.5 million increase in cash paid for leased merchandise and $23.9 million decrease in cash received on accounts receivable. Operating cash flows were positively impacted by a $45.0 million decrease in cash paid for taxes when compared to the same period in 2023. Other changes in cash provided by operating activities are discussed above in our discussion of results for the nine months ended September 30, 2024.

Previous wording

Cash used in investing activities was $17.8 million and $10.6 million during the six months ended June 30, 2024 and 2023, respectively. The $7.2 million increase in investing cash outflows was primarily the result of an $81.8 million increase in cash investments in loans receivable due mainly to growth in Four loan originations offset by a decline in Vive originations due to a decrease in demand for products provided by Vive's POS partners. This increase in loan originations was partially offset by a $74.2 million increase in proceeds from loans receivable, due to an increase in Four loan repayments.

Current wording

Cash used in investing activities was $35.6 million and $18.8 million during the nine months ended September 30, 2024 and 2023, respectively. The $16.8 million increase in investing cash outflows was primarily the result of an $143.1 million increase in cash investments in loans receivable due mainly to growth in Four loan originations, offset by a decline in Vive originations due to a decrease in demand for products provided by Vive's POS partners. This increase in loan originations was partially offset by a $125.2 million increase in proceeds from loans receivable, due to an increase in Four loan repayments.

Previous wording

Cash used in financing activities was $78.6 million during the six months ended June 30, 2024 compared to $73.8 million during the same period in 2023. Cash used in financing activities during the six months ended June 30, 2024 was primarily for the Company's repurchase of $61.2 million of its common stock and $10.3 million paid for cash dividends, compared to $71.8 million of share repurchases and no cash paid for dividends during the same period in the prior year.

Current wording

Cash used in financing activities was $121.1 million during the nine months ended September 30, 2024 compared to $110.9 million during the same period in 2023. Cash used in financing activities during the nine months ended September 30, 2024 was primarily for the Company's repurchase of $98.2 million of its common stock and $15.4 million paid for cash dividends, compared to $108.3 million of share repurchases and no cash paid for dividends during the same period in the prior year.