AAN - The Aaron's Company Inc. Reports Third Quarter 2023 Financial Results Updates Full Year Outlook
PR Newswire
ATLANTA , Oct. 23, 2023 /PRNewswire/ -- The Aaron's Company, Inc. (NYSE: AAN) today released its third 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.
Third Quarter 2023 Consolidated Results 1 :
- Revenues were $525.7 million , a decrease of 11.4%
- Adjusted EBITDA 2,3 was $25.3 million , a decrease of 33.8%
- Loss per share was $0.13 ; Non-GAAP EPS 2 was $0.01
- Write-offs were 6.1% in the Aaron's Business, an improvement of 140 basis points
- Cost optimization initiatives on track to achieve $35 to $40 million target for 2023
- Returned $9.5 million of capital to shareholders
- Updates 2023 full year outlook; narrows the range for all components
Third Quarter 2023 Key Items:
The Aaron's Company
- Earnings were ahead of internal expectations largely due to a larger lease portfolio size and lower write-offs at the Aaron's Business, and ongoing cost optimization
- Ended the quarter with cash and cash equivalents of $39.3 million and debt of $187.5 million
Aaron's Business
- Earnings before income taxes were $17.5 million ; adjusted EBITDA was $36.4 million , a decrease of 14.2% as compared to the prior year quarter
- Write-offs were 6.1%, a 140 basis points improvement as compared to the prior year quarter due to ongoing lease decisioning enhancements
- Ended the quarter with 245 GenNext stores, which accounted for over 30% of lease revenues and fees and retail sales
- Ended the quarter with 111 Hub and Showroom pairs
- E-commerce revenues increased 1.3% as compared to the prior year quarter and represented 18.5% of lease revenues
BrandsMart
- Loss before income taxes was $2.4 million ; adjusted EBITDA was $1.0 million , a decrease of 84.6% due to lower revenues as a result of ongoing customer demand pressure
- Gross profit margin was 22.9%, an increase of 50 basis points as compared to the prior year quarter
- Recently opened store located in Augusta, GA ; first new store opened since acquiring the business in 2022
The Company will host an earnings conference call tomorrow, October 24, 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/966851198 . 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 1,250 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 .
1. |
Comparisons are to the prior year quarter unless otherwise noted. |
2. |
Item is a Non-GAAP financial measure. Refer to the "Use of Non-GAAP Financial Information" and supporting reconciliation tables in the attached supplement. |
3. |
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. |
SOURCE The Aaron’s Company, Inc.
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