The Aaron’s Company, Inc. Reports Second Quarter 2023 Financial Results

The Aaron’s Company, Inc. (NYSE: AAN) today released its second quarter 2023 financial results. Complete financial results are available at investor.aarons.com. 

Second Quarter 2023 Consolidated Results¹:

• Revenues were $530.4 million, a decrease of 13.1%
• Net earnings were $6.5 million, an increase of 222.0%; Non-GAAP net earnings² were $12.2 million, a decrease of 50.6%
• Adjusted EBITDA^2,3 was $42.4 million, a decrease of 17.0%
• Diluted EPS was $0.21; Non-GAAP diluted EPS² was $0.39
• Write-offs were 5.4% in the Aaron’s Business, an improvement of 30 basis points
• Reduced debt $36.1 million in the quarter and $124.3 million since the prior year quarter-end
• Updates 2023 full year outlook; lowers revenues, maintains adjusted EBITDA, and increases adjusted free cash flow

Second Quarter 2023 Key Items:

The Aaron’s Company

• Earnings were ahead of internal expectations largely due to ongoing expense controls, despite lower revenues in both business segments
• Ended the quarter with cash and cash equivalents of $38.4 million and debt of $186.1 million, resulting in a net debt² reduction of $30.2 million in the quarter primarily due to strong cash provided by operating activities

Aaron’s Business

• Earnings before income taxes were $30.8 million; adjusted EBITDA was $49.5 million, which exceeded internal expectations and increased 3.0% as compared to the prior year quarter primarily due to lower total operating expenses and lower write-offs
• Personnel and other operating expenses benefited from cost optimization initiatives and ongoing investments in technology platforms and marketing analytics
• Ended the quarter with 230 GenNext stores, 101 hubs, and 101 showrooms
• GenNext stores accounted for approximately 29% of lease revenues & fees and retail sales
• E-commerce revenues increased 5.5% as compared to the prior year quarter and represented 17.9% of lease revenues

BrandsMart

• Earnings before income taxes were $1.1 million; adjusted EBITDA was $4.5 million, which exceeded internal expectations despite lower revenues due to continued pressure on customer demand
• Began construction on first new BrandsMart store planned to open in Augusta, GA in Q4 2023

The Company will host an earnings conference call tomorrow, August 1, 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/457512107. A transcript of the webcast will also be available at investor.aarons.com.

For the complete press release, click here.

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 1,300 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. BrandsMart Leasing offers lease-to-own solutions to customers of BrandsMart U.S.A. Woodhaven is our furniture manufacturing division. For more information, visit investor.aarons.com, aarons.com, and brandsmartusa.com.

Source: The Aaron’s Company, Inc.