The Aaron's Company, Inc. Reports Third Quarter 2022 Financial Results, Raises Midpoint of Full Year Outlook

Rhea-AI Summary

The Aaron's Company, Inc. (NYSE: AAN) reported its third quarter 2022 financial results with revenues of $593.4 million, a 31.2% increase attributed to the BrandsMart acquisition. However, the company experienced a net loss of $15.6 million with an Adjusted EBITDA decrease of 34.3% to $35.2 million. Same-store revenues declined by 7.7%, while e-commerce revenue grew 11.1%. The firm also opened its 200th GenNext location.

Positive

• Revenues increased by 31.2% to $593.4 million.
• E-commerce revenue grew year-over-year by 11.1% at the Aaron's Business.
• Opened 200th GenNext location.

Negative

• Net loss of $15.6 million.
• Adjusted EBITDA decreased by 34.3% to $35.2 million.
• Same-store revenues decreased by 7.7%.

ATLANTA, Oct. 24, 2022 /PRNewswire/ -- The Aaron's Company, Inc. (NYSE: AAN) today released its third quarter 2022 financial results. Complete financial results are available at investor.aarons.com. Highlights of those results are included below and in the attached supplement.

Consolidated Results:

• Revenues were $593.4 million, an increase of 31.2%, benefiting from the BrandsMart acquisition
• Net loss was $15.6 million; Adjusted net earnings¹ were $9.7 million
• Adjusted EBITDA¹ was $35.2 million, a decrease of 34.3%
• Loss per share was $0.51; Non-GAAP EPS¹ was $0.31

Key Items:

• Aaron's Business same-store revenues decreased 7.7% compared to an increase of 4.6% in the prior year quarter
• BrandsMart product sales² decreased 0.5% compared to an increase of 9.6% in the prior year quarter
• E-commerce revenue grew year-over-year by 11.1% at the Aaron's Business and by 18.0% at BrandsMart²
• The Aaron's Business opened its 200th GenNext location in October

Aaron's will host an earnings conference call tomorrow, October 25, 2022, 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/576928281. 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 1,300 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.

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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.	This metric is unaudited and includes a comparison to a period in which the BrandsMart business was not owned by The Aaron's Company, Inc.

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SOURCE The Aaron's Company, Inc.

FAQ

What were Aaron's Company Q3 2022 earnings results?

Revenues were $593.4 million, with a net loss of $15.6 million.

What is the stock symbol for Aaron's Company?

The stock symbol is AAN.

How did e-commerce perform for Aaron's Company in Q3 2022?

E-commerce revenue grew 11.1% year-over-year at the Aaron's Business.

What was the adjusted EBITDA for Aaron's Company in Q3 2022?

Adjusted EBITDA was $35.2 million, a decrease of 34.3%.