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 earnings1 were
$20.5 million, a decrease of
25.5%
- Adjusted EBITDA1,2 was $45.9
million, a decrease of 20.7%
- Diluted EPS was $0.41; Non-GAAP
diluted EPS1 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.
|
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SOURCE The Aaron's Company, Inc.