ATLANTA, Feb. 26,
2024 /PRNewswire/ -- The Aaron's Company, Inc. (NYSE:
AAN) today released its fourth quarter and full year 2023 financial
results. Highlights of those results and the 2024 outlook are
included below, in the attached supplement, and at
investor.aarons.com.
Fourth Quarter 2023 Consolidated
Results1:
- Revenues were $529.5 million, a
decrease of 10.2%
- Adjusted EBITDA2,3 was $22.4
million, a decrease of 25.2%
- Loss per share was $0.41;
Non-GAAP loss per share2 was $0.26
- Write-offs were 6.5% in the Aaron's Business, an improvement of
60 basis points
Full Year 2023 Consolidated Results1:
- Revenues were $2.14 billion, a
decrease of 4.9%
- Adjusted EBITDA2,3 was $136.0
million, a decrease of 23.2%
- EPS was $0.09; Non-GAAP
EPS2 was $0.81
- Write-offs were 5.8% in the Aaron's Business, an improvement of
60 basis points
- Adjusted free cash flow was $102.3
million, an increase of 10.5%
- Net debt lowered by $79.8
million, a reduction of 37.2%
Key Business Highlights1:
- Aaron's Business recurring revenue written decreased 4.2% in Q4
due to lower average ticket, partially offset by 1.4% growth in
lease merchandise deliveries
- Aaron's Business e-commerce recurring revenue written increased
60.0% in Q4 driven by new omnichannel customer acquisition
program
- Aaron's Business lease portfolio size decreased 7.0% in 2023
but is expected to grow mid single digits by year-end 2024
- BrandsMart comparable sales decreased 14.0% in Q4, a sequential
improvement of 300 basis points
- 2023 cost savings exceeded $40
million, with additional cost actions taken in Q1 2024
Full Year 2024 Consolidated Outlook:
- Revenues of $2.055 billion to
$2.155 billion
- Adjusted EBITDA2 of $105.0
million to $125.0 million
- Non-GAAP Diluted EPS2 of $(0.10) to $0.25
The Company will host an earnings conference call tomorrow,
February 27, 2024, 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/751317386. A transcript of the
webcast will also be available at investor.aarons.com. The
Company's Annual Report on Form 10-K for the year ended
December 31, 2023 will be filed by
the end of week of February 26,
2024.
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1.
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Comparisons are to the
prior year period unless otherwise noted.
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2.
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Item is a Non-GAAP
financial measure. Refer to the "Use of Non-GAAP Financial
Information" and supporting reconciliation tables in the attached
supplement.
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3.
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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
purposes.
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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 1,240 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 11 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.
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SOURCE The Aaron’s Company, Inc.