ATLANTA, July 31,
2023 /PRNewswire/ -- The Aaron's Company, Inc.
(NYSE: AAN) today released its second quarter 2023 financial
results. Complete financial results are available
at investor.aarons.com. Highlights of those results are included
below and in the attached supplement.
Second Quarter 2023 Consolidated Results1:
- Revenues were $530.4 million, a
decrease of 13.1%
- Net earnings were $6.5 million,
an increase of 222.0%; Non-GAAP net earnings2 were
$12.2 million, a decrease of
- Adjusted EBITDA2,3 was $42.4
million, a decrease of 17.0%
- Diluted EPS was $0.21; Non-GAAP
diluted EPS2 was $0.39
- Write-offs were 5.4% in the Aaron's Business, an improvement of
30 basis points
- Reduced debt $36.1 million in the
quarter and $124.3 million since the
prior year quarter-end
- Updates 2023 full year outlook; lowers revenues, maintains
adjusted EBITDA, and increases adjusted free cash flow
Second Quarter 2023 Key Items:
The Aaron's Company
- Earnings were ahead of internal expectations largely due to
ongoing expense controls, despite lower revenues in both business
- Ended the quarter with cash and cash equivalents of
$38.4 million and debt of
$186.1 million, resulting in a net
debt2 reduction of $30.2
million in the quarter primarily due to strong cash provided
by operating activities
- Earnings before income taxes were $30.8
million; adjusted EBITDA was $49.5
million, which exceeded internal expectations and increased
3.0% as compared to the prior year quarter primarily due to lower
total operating expenses and lower write-offs
- Personnel and other operating expenses benefited from cost
optimization initiatives and ongoing investments in technology
platforms and marketing analytics
- Ended the quarter with 230 GenNext stores, 101 hubs, and 101
- GenNext stores accounted for approximately 29% of lease
revenues & fees and retail sales
- E-commerce revenues increased 5.5% as compared to the prior
year quarter and represented 17.9% of lease revenues
- Earnings before income taxes were $1.1
million; adjusted EBITDA was $4.5
million, which exceeded internal expectations despite lower
revenues due to continued pressure on customer demand
- Began construction on first new BrandsMart store planned to
open in Augusta, GA in Q4
The Company will host an earnings conference call tomorrow,
August 1, 2023, at 8:30 a.m. ET.
Chief Executive Officer Douglas A.
Lindsay will host the call along with President Steve Olsen and Chief Financial Officer
C. Kelly Wall. A live audio webcast
of the conference call and presentation slides may be accessed at
investor.aarons.com and the hosting website at
https://events.q4inc.com/attendee/457512107. A transcript of the
webcast will also be available at investor.aarons.com.
About The Aaron's Company, Inc.
Headquartered in Atlanta, The
Aaron's Company, Inc. (NYSE: AAN) is a leading, technology-enabled,
omnichannel provider of lease-to-own and retail purchase solutions
of appliances, electronics, furniture, and other home goods across
its brands: Aaron's, BrandsMart U.S.A., BrandsMart Leasing, and Woodhaven.
Aaron's offers a direct-to-consumer lease-to-own solution through
its approximately 1,260 Company-operated and franchised stores in
47 states and Canada, as well as
its e-commerce platform. BrandsMart U.S.A. is one of the leading appliance
retailers in the country with ten retail stores in Florida and Georgia, as well as its e-commerce platform.
BrandsMart Leasing offers lease-to-own solutions to customers of
BrandsMart U.S.A. Woodhaven is the
Company's furniture manufacturing division. For more information,
visit investor.aarons.com, aarons.com, and brandsmartusa.com.
Comparisons are to the
prior year quarter unless otherwise noted.
Item is a Non-GAAP
financial measure. Refer to the "Use of Non-GAAP Financial
Information" and supporting reconciliation tables in the attached
Starting in 2023,
adjusted EBITDA excludes stock-based compensation expense. All
prior period adjusted EBITDA metrics included herein have been
adjusted to exclude stock compensation expense for comparability
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SOURCE The Aaron’s Company, Inc.