PR Newswire
ATLANTA , April 24, 2023 /PRNewswire/ -- The Aaron's Company, Inc. (NYSE: AAN) today released its first 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.
First Quarter 2023 Consolidated Results:
- Revenues were $554.4 million , an increase of 21.5% due to the BrandsMart acquisition
- Net earnings were $12.8 million , a decrease of 40.6%; Non-GAAP net earnings 1 were $20.5 million , a decrease of 25.5%
- Adjusted EBITDA 1,2 was $45.9 million , a decrease of 20.7%
- Diluted EPS was $0.41 ; Non-GAAP diluted EPS 1 was $0.66
- Updated 2023 full year outlook; raised EPS and adjusted free cash flow
First Quarter 2023 Key Items:
The Aaron's Company
- Earnings were ahead of internal expectations, due in part to reduced write-offs and continued implementation of improved expense controls, despite lower revenues in both segments
- Reduced net debt by $36.9 million in the quarter primarily due to strong cash provided by operating activities; ended the quarter with cash and cash equivalents of $44.3 million and debt of $222.1 million
Aaron's Business
- Softer tax refund season led to fewer exercises of early purchase options, resulting in lower than expected revenue and a larger than expected lease portfolio size to end the quarter
- Lease decisioning enhancements led to a 170 bps sequential reduction to the provision for lease merchandise write-offs as a percentage of lease revenues & fees
- GenNext stores accounted for approximately 27% of lease revenues & fees and retail sales
- E-commerce revenues increased 12.3% as compared to the prior year quarter and represented 17.9% of lease revenues
BrandsMart
- Earnings exceeded internal expectations despite lower revenues due to continued pressure on customer demand
- First new BrandsMart store planned to open in Augusta, GA in Q4 2023
The Company will host an earnings conference call tomorrow, April 25, 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/104089893 . 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 .
1. | Item is a Non-GAAP financial measure. Refer to the "Use of Non-GAAP Financial Information" and supporting reconciliation tables in the attached supplement. |
2. | 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.