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 Results1:
- Revenues were $525.7 million, a
decrease of 11.4%
- Adjusted EBITDA2,3 was $25.3
million, a decrease of 33.8%
- Loss per share was $0.13;
Non-GAAP EPS2 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.
|
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SOURCE The Aaron’s Company, Inc.