The Aaron's Company, Inc. Reports Second Quarter 2023 Financial Results, Updates Full Year Outlook
- Net earnings increased by 222.0% to $6.5 million.
- The company reduced debt by $36.1 million in the quarter.
- Revenues decreased by 13.1% to $530.4 million.
- Adjusted EBITDA decreased by 17.0% to $42.4 million.
Second Quarter 2023 Consolidated Results1:
- Revenues were
, a decrease of$530.4 million 13.1% - Net earnings were
, an increase of$6.5 million 222.0% ; Non-GAAP net earnings2 were , a decrease of$12.2 million 50.6% - Adjusted EBITDA2,3 was
, a decrease of$42.4 million 17.0% - Diluted EPS was
; Non-GAAP diluted EPS2 was$0.21 $0.39 - Write-offs were
5.4% in the Aaron's Business, an improvement of 30 basis points - Reduced debt
in the quarter and$36.1 million since the prior year quarter-end$124.3 million - 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
and debt of$38.4 million , resulting in a net debt2 reduction of$186.1 million in the quarter primarily due to strong cash provided by operating activities$30.2 million
Aaron's Business
- Earnings before income taxes were
; adjusted EBITDA was$30.8 million , which exceeded internal expectations and increased$49.5 million 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 represented17.9% of lease revenues
BrandsMart
- Earnings before income taxes were
; adjusted EBITDA was$1.1 million , which exceeded internal expectations despite lower revenues due to continued pressure on customer demand$4.5 million - 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.
About The Aaron's Company, Inc.
Headquartered in
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.
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