Aarons Company Inc (The) AAN

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 EBITDA^2,3 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.

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SOURCE The Aaron’s Company, Inc.