ATLANTA, July 25, 2019
/PRNewswire/ -- Aaron's, Inc. (NYSE: AAN), a leading
omnichannel provider of lease-purchase solutions, today announced
financial results for the three months ended June 30,
2019.
"We are pleased to report strong second quarter results,
achieving meaningful revenue, Adjusted EBITDA and Non-GAAP diluted
EPS growth," said John Robinson,
Chief Executive Officer. "Progressive performed at a high
level, continuing its trend of growing revenues and profits through
increasing invoice volume. At the same time, we continue to invest
in the business to support strong expected growth with our existing
partners and retailers in our pipeline. The Aaron's Business
reported same-store revenues up 0.1%, a 190 basis point improvement
over the prior year. We are encouraged by the progress being made
in the Aaron's Business and continue to invest to improve our
omnichannel platform," concluded Mr. Robinson.
Consolidated Results
For the second quarter of 2019, consolidated revenues were
$968.1 million compared with
$927.9 million for the second quarter
of 2018. Calculated on a basis consistent with the 2019 adoption of
ASC 842 related to lease accounting, revenues increased
$90.3 million, or 10.3%, compared to
the prior year period. The increase in consolidated revenues
was primarily due to the increase in revenues at Progressive and
the contribution from 152 franchised locations acquired by the
Aaron's Business in 2018, partially offset by the closure of
Aaron's stores in the first half of 2019.
Net earnings for the second quarter of 2019 were $42.7 million compared to $38.5 million in the prior year period. Net
earnings in the second quarter of 2019 included approximately
$18.7 million in pretax charges
primarily related to the closure of approximately 70 company-owned
Aaron's stores, the majority of which were underperforming stores
closed by the end of the second quarter. Adjusted EBITDA for
the Company was $107.4 million for
the second quarter of 2019, compared with $97.0 million for the same period in 2018, an
increase of $10.4 million, or 10.7%,
due primarily to the strong growth in our Progressive segment as
well as a $3.6 million insurance
recovery from hurricane losses reported in 2017. As a percentage of
revenues, Adjusted EBITDA was 11.1% in the second quarter of 2019
and 2018 when calculated on a basis consistent with the 2019
adoption of ASC 842.
Diluted earnings per share for the second quarter of 2019 were
$0.62 compared with $0.54 in the year ago period. On a non-GAAP
basis, diluted earnings per share were $0.93 in the second quarter of 2019 compared with
$0.84 for the same quarter in 2018,
an increase of $0.09 or 10.7%.
The Company generated $244.6 million in cash from operations
during the six months ended June 30, 2019 and ended the second
quarter with $100.2 million in cash,
compared with a cash balance of $15.3
million at the end of 2018. During the second quarter, the
company repurchased 242,860 shares for $14.4
million at an average purchase price of $59.35 per share.
Progressive Leasing Segment Results
Progressive Leasing's revenues in the second quarter of 2019
were $516.3 million compared to
reported revenues of $483.7 million
in the second quarter of 2018. Calculated on a basis consistent
with the 2019 adoption of ASC 842, revenues increased $82.7 million or 19.1%. Invoice volume increased
20.4% in the quarter, driven by a 23.4% increase in invoice volume
per active door, partially offset by a 2.5% decrease in active
doors to approximately 19,800. The decrease in active door count
was primarily due to a reduction in locations in our mattress and
mobile phone verticals, which was partially offset by additions in
other verticals. Progressive Leasing had 909,000 customers at
June 30, 2019, a 19.9% increase from June 30, 2018.
Earnings before income taxes for the second quarter of 2019 were
$58.4 million. EBITDA for the second
quarter of 2019 was $68.2 million
compared with $55.8 million for the
same period of 2018, an increase of 22.3%. As a percentage of
revenues, EBITDA was 13.2% for the second quarter of 2019, an
increase of 30 basis points compared to the second quarter of 2018,
calculated on a basis consistent with the 2019 adoption of ASC 842.
This increase was due primarily to improved gross margins partially
offset by an acceleration in investments to support expected
revenue growth and anticipated pipeline conversion.
The provision for lease merchandise write-offs was 7.6% of
revenues in the second quarter of 2019, compared with 7.5% in the
same period of 2018, calculated on a basis consistent with the 2019
adoption of ASC 842.
The Aaron's Business Segment Results
For the second quarter of 2019, total revenues for the Aaron's
Business increased 1.9% to $443.2
million from $435.0 million in
the second quarter of 2018. The increase was primarily due to the
contributions from 152 franchised locations acquired throughout
2018, partially offset by the closure of 151 underperforming stores
in the first half of 2019. Same-store revenues were up 0.1% in the
second quarter of 2019, an improvement of 190 basis points from the
second quarter of 2018, continuing the trend of improvement
experienced throughout 2018. Customer count on a same-store basis
was down 4.3% during the second quarter of 2019 compared to the
same period in 2018. Company-operated Aaron's stores had 984,000
customers at June 30, 2019, a 2.9%
increase from June 30, 2018.
Lease revenue and fees for the three months ended June 30,
2019 increased 8.0% compared with the same period in 2018.
Non-retail sales, which primarily consist of merchandise sales to
the Company's franchisees, decreased 36.4% for the second quarter
of 2019 compared with the same period of the prior year. The
decline is attributed primarily to the franchisee acquisitions
completed in 2018.
Earnings before income taxes for the second quarter of 2019 were
$0.1 million. Adjusted EBITDA for the
three months ended June 30, 2019 was $39.7 million including a $3.6 million insurance recovery from hurricane
losses reported in 2017. This compares to $42.4 million for the same period in 2018, a
decrease of $2.7 million or 6.4%, due
primarily to the timing of 2019 marketing expenses. As a percentage
of revenues, Adjusted EBITDA decreased 80 basis points to 8.9% for
the three months ended June 30, 2019, compared with 9.7% for
the same period last year.
Write-offs for damaged, lost or unsaleable merchandise were 5.6%
of revenues in the second quarter of 2019, compared with 4.0% for
the same period last year. Contributing to the increase in
write-offs was an increase in promotional offerings, higher ticket
leases, store closure activity during the first half of 2019, and
an increasing mix of e-commerce as a percent of revenue.
At June 30, 2019, the Aaron's Business had 1,171
Company-operated stores and 357 franchised stores.
Significant Components of Revenue and Franchise
Performance
Consolidated lease revenues and fees for the three months ended
June 30, 2019 increased 14.0% over the same period of the
prior year, calculated on a basis consistent with the 2019 adoption
of ASC 842. Franchise royalties and fees decreased 29.0% in
the second quarter of 2019 compared with the same period a year
ago, primarily as a result of the lower number of franchised
stores. Franchise revenues totaled $108.0 million for the three months ended
June 30, 2019, a decrease of 31.7% from the same period for
the prior year. Same-store revenues for franchised stores
increased 1.2% and same-store customer counts declined 2.7% for the
second quarter of 2019 compared with the same quarter in
2018. Franchised stores had 254,000 customers at the end of
the second quarter of 2019. Revenues and customers of
franchisees are not revenues and customers of the Aaron's Business
or the Company.
2019 Outlook
|
Current
Outlook1
|
Previous
Outlook
|
(In thousands,
except per share amounts)
|
Low
|
High
|
Low
|
High
|
Aaron's Inc. - Total
Revenues
|
$
|
3,905,000
|
|
$
|
4,065,000
|
|
$
|
3,905,000
|
|
$
|
4,065,000
|
|
Aaron's Inc. -
Adjusted EBITDA
|
430,000
|
|
452,000
|
|
415,000
|
|
442,000
|
|
Aaron's Inc. -
Diluted EPS
|
3.11
|
|
3.26
|
|
3.15
|
|
3.35
|
|
Aaron's Inc. -
Diluted Non-GAAP EPS
|
3.85
|
|
4.00
|
|
3.65
|
|
3.85
|
|
Aaron's Inc. -
Capital Expenditures
|
100,000
|
|
120,000
|
|
100,000
|
|
120,000
|
|
|
|
|
|
|
Progressive - Total
Revenues
|
2,100,000
|
|
2,175,000
|
|
2,100,000
|
|
2,175,000
|
|
Progressive -
EBITDA
|
275,000
|
|
285,000
|
|
260,000
|
|
275,000
|
|
|
|
|
|
|
Aaron's Business -
Total Revenues
|
1,775,000
|
|
1,855,000
|
|
1,775,000
|
|
1,855,000
|
|
Aaron's Business -
Adjusted EBITDA
|
160,000
|
|
170,000
|
|
160,000
|
|
170,000
|
|
Aaron's Business -
Annual Same Store Revenues
|
0.0%
|
|
2.0%
|
|
0.0%
|
|
2.0%
|
|
|
|
|
|
|
DAMI - Total
Revenues
|
30,000
|
|
35,000
|
|
30,000
|
|
35,000
|
|
DAMI - Adjusted
EBITDA
|
(5,000)
|
|
(3,000)
|
|
(5,000)
|
|
(3,000)
|
|
|
1 See the
"Use of Non-GAAP Financial Information" section accompanying this
press release.
|
Conference Call and Webcast
The Company will hold a conference call to discuss its quarterly
results on Thursday, July 25, 2019, at 8:30 a.m. Eastern Time. The public is
invited to listen to the conference call by webcast accessible
through the Investor Relations section of the Company's website,
aarons.com. The webcast will be archived for playback at that
same site.
About Aaron's, Inc.
Headquartered in Atlanta,
Aaron's, Inc. (NYSE: AAN), is a leading omnichannel provider of
lease-purchase solutions. Progressive Leasing provides
lease-purchase solutions through approximately 20,000 retail
partner locations in 46 states. The Aaron's Business engages
in the sales and lease ownership and specialty retailing of
furniture, consumer electronics, home appliances and accessories
through its approximately 1,500 Company-operated and franchised
stores in 47 states, Puerto
Rico and Canada, as well as
its e-commerce platform, Aarons.com. Dent-A-Med, Inc., d/b/a the
HELPcard®, provides a variety of second-look credit products that
are originated through federally-insured banks. For more
information, visit investor.aarons.com, Aarons.com,
ProgLeasing.com, and HELPcard.com.
"Safe Harbor" Statement under the Private Securities
Litigation Reform Act of 1995: Statements in this news release
regarding our business that are not historical facts are
"forward-looking statements" that involve risks and uncertainties
which could cause actual results to differ materially from those
contained in the forward-looking statements. Such
forward-looking statements generally can be identified by the use
of forward-looking terminology, such as "continue," "expect,"
"believe," "guidance," "outlook," "will," "expectations," and
"trends" and similar terminology. These risks and
uncertainties include factors such as changes in general economic
conditions, competition, pricing, legal and regulatory proceedings
and investigations, customer privacy; consumer, third party and
employee fraud; information security, customer demand, the
execution and results of our strategy and expense reduction and
store closure and consolidation initiatives (including the risk
that the costs associated with these initiatives exceeds
expectations), risks related to M&A activities, including our
recent franchisee acquisitions and the risk that the financial
performance from those acquisitions and from M&A activities do
not meet our expectations, risks related to Progressive Leasing's
"virtual" lease-to-own business, the outcome of Progressive
Leasing's pilot or test programs with various retailers and the
results of Progressive Leasing's efforts to expand its
relationships with existing retailer partners and establish new
partnerships with additional retailers, increases in lease
merchandise write-offs and bad debt expense associated with
Progressive Leasing's growth in doors and customers and changes in
product mix, and the other risks and uncertainties discussed under
"Risk Factors" in the Company's Annual Report on Form 10-K for the
fiscal year ended December 31, 2018.
Statements in this release that are "forward-looking" include
without limitation statements about our expectations regarding: the
strength of our lease-to-own businesses; the results of our
investments in the Aaron's Business and Progressive Leasing; the
results of our business transformation initiatives in the Aaron's
Business; revenue growth and pipeline conversions for Progressive
Leasing; same store sales for the Aaron's Business and the updated
2019 fiscal year Outlook set forth in this press release, for the
Company on a consolidated basis, and for Progressive Leasing, the
Aaron's Business and DAMI. You are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date of this press release. Except as required by law,
the Company undertakes no obligation to update these
forward-looking statements to reflect subsequent events or
circumstances after the date of this press release.
Aaron's, Inc. and
Subsidiaries
|
Consolidated
Statements of Earnings
|
(In thousands,
except per share amounts)
|
|
|
(Unaudited)
Three Months
Ended
|
(Unaudited)
Six Months
Ended
|
|
June 30,
|
June 30,
|
|
2019
|
2018
|
2019
|
2018
|
Revenues:
|
|
|
|
|
Lease Revenues and
Fees
|
$
|
907,565
|
|
$
|
845,938
|
|
$
|
1,851,722
|
|
$
|
1,716,005
|
|
Retail
Sales
|
8,898
|
|
6,592
|
|
21,707
|
|
15,108
|
|
Non-Retail
Sales
|
34,124
|
|
53,661
|
|
71,105
|
|
106,891
|
|
Franchise Royalties
and Fees
|
8,605
|
|
12,125
|
|
17,812
|
|
24,987
|
|
Interest and Fees on
Loans Receivable
|
8,610
|
|
9,208
|
|
17,256
|
|
18,750
|
|
Other
|
339
|
|
335
|
|
642
|
|
927
|
|
Total
|
$
|
968,141
|
|
$
|
927,859
|
|
$
|
1,980,244
|
|
$
|
1,882,668
|
|
|
|
|
|
|
Costs and
Expenses:
|
|
|
|
|
Depreciation of Lease
Merchandise
|
474,868
|
|
415,414
|
|
975,688
|
|
855,422
|
|
Retail Cost of
Sales
|
5,651
|
|
4,156
|
|
14,283
|
|
9,818
|
|
Non-Retail Cost of
Sales
|
28,948
|
|
47,068
|
|
58,144
|
|
95,088
|
|
Operating
Expenses
|
383,576
|
|
388,337
|
|
770,792
|
|
778,569
|
|
Restructuring
Expenses (Reversals), Net
|
18,738
|
|
(882)
|
|
32,019
|
|
24
|
|
Other Operating
Income, Net
|
(3,486)
|
|
(165)
|
|
(4,383)
|
|
(248)
|
|
Total
|
$
|
908,295
|
|
$
|
853,928
|
|
$
|
1,846,543
|
|
$
|
1,738,673
|
|
|
|
|
|
|
Operating
Profit
|
59,846
|
|
73,931
|
|
133,701
|
|
143,995
|
|
Interest
Income
|
944
|
|
154
|
|
1,045
|
|
356
|
|
Interest
Expense
|
(4,300)
|
|
(3,807)
|
|
(9,256)
|
|
(8,133)
|
|
Impairment of
Investment
|
—
|
|
(20,098)
|
|
—
|
|
(20,098)
|
|
Other Non-Operating
Income (Expense), Net
|
329
|
|
(200)
|
|
1,637
|
|
612
|
|
Earnings Before
Income Tax Expense
|
$
|
56,819
|
|
$
|
49,980
|
|
$
|
127,127
|
|
$
|
116,732
|
|
|
|
|
|
|
Income Tax
Expense
|
14,169
|
|
11,479
|
|
28,399
|
|
25,985
|
|
Net
Earnings
|
$
|
42,650
|
|
$
|
38,501
|
|
$
|
98,728
|
|
$
|
90,747
|
|
|
|
|
|
|
Earnings Per
Share
|
$
|
0.63
|
|
$
|
0.55
|
|
$
|
1.46
|
|
$
|
1.30
|
|
Earnings Per Share
Assuming Dilution
|
$
|
0.62
|
|
$
|
0.54
|
|
$
|
1.44
|
|
$
|
1.27
|
|
|
|
|
|
|
Weighted Average
Shares Outstanding
|
67,687
|
|
69,645
|
|
67,492
|
|
69,875
|
|
Weighted Average
Shares Outstanding Assuming Dilution
|
68,793
|
|
70,837
|
|
68,784
|
|
71,428
|
|
Aaron's, Inc. and
Subsidiaries
|
Consolidated
Balance Sheets
|
(In
thousands)
|
|
|
(Unaudited)
|
|
|
June 30,
2019
|
|
December 31,
2018
|
|
ASSETS:
|
|
|
|
|
Cash and Cash
Equivalents
|
$
|
100,242
|
|
|
$
|
15,278
|
|
|
Accounts Receivable
(net of allowances of $63,000 in 2019 and $62,704 in
2018)
|
85,257
|
|
|
98,159
|
|
|
Lease Merchandise
(net of accumulated depreciation and allowances of $855,365 in 2019
and $816,928 in 2018)
|
1,292,724
|
|
|
1,318,470
|
|
|
Loans Receivable (net
of allowances and unamortized fees of $18,947 in 2019 and $19,941
in 2018)
|
69,974
|
|
|
76,153
|
|
|
Property, Plant and
Equipment at Cost (net of accumulated depreciation of $300,983 in
2019 and $284,287 in 2018)
|
233,073
|
|
|
229,492
|
|
|
Operating Lease
Right-of-Use Assets
|
338,805
|
|
|
—
|
|
|
Goodwill
|
736,202
|
|
|
733,170
|
|
|
Other Intangibles
(net of accumulated amortization of $147,440 in 2019 and $130,116
in 2018)
|
207,066
|
|
|
228,600
|
|
|
Income Tax
Receivable
|
11,921
|
|
|
29,148
|
|
|
Prepaid Expenses and
Other Assets
|
104,934
|
|
|
98,222
|
|
|
Total
Assets
|
$
|
3,180,198
|
|
|
$
|
2,826,692
|
|
|
LIABILITIES & SHAREHOLDERS'
EQUITY:
|
|
|
|
|
Accounts Payable and
Accrued Expenses
|
$
|
226,913
|
|
|
$
|
293,153
|
|
|
Deferred Income Taxes
Payable
|
288,291
|
|
|
267,500
|
|
|
Customer Deposits and
Advance Payments
|
80,680
|
|
|
80,579
|
|
|
Operating Lease
Liabilities
|
386,989
|
|
|
—
|
|
|
Debt
|
347,767
|
|
|
424,752
|
|
|
Total
Liabilities
|
1,330,640
|
|
|
1,065,984
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
Common Stock, Par
Value $0.50 Per Share: Authorized: 225,000,000 Shares at June 30,
2019 and December 31, 2018; Shares Issued: 90,752,123 at June 30,
2019 and December 31, 2018
|
45,376
|
|
|
45,376
|
|
|
Additional Paid-in
Capital
|
277,533
|
|
|
278,922
|
|
|
Retained
Earnings
|
2,101,915
|
|
|
2,005,344
|
|
|
Accumulated Other
Comprehensive Loss
|
(45)
|
|
|
(1,087)
|
|
|
|
|
|
|
|
Less: Treasury Shares
at Cost
|
|
|
|
|
Common Stock:
23,204,626 Shares at June 30, 2019 and 23,567,979 at December 31,
2018
|
(575,221)
|
|
|
(567,847)
|
|
|
Total Shareholders'
Equity
|
1,849,558
|
|
|
1,760,708
|
|
|
Total Liabilities and
Shareholders' Equity
|
$
|
3,180,198
|
|
|
2,826,692
|
|
|
Aaron's, Inc. and
Subsidiaries
|
Consolidated
Statements of Cash Flows
|
|
(Unaudited)
|
Six Months
Ended
June
30,
|
(In
Thousands)
|
2019
|
|
2018
|
OPERATING
ACTIVITIES:
|
|
|
|
Net
Earnings
|
$
|
98,728
|
|
|
$
|
90,747
|
|
Adjustments to
Reconcile Net Earnings to Cash Provided by Operating
Activities:
|
|
|
|
Depreciation of Lease
Merchandise
|
975,688
|
|
|
855,422
|
|
Other Depreciation
and Amortization
|
53,862
|
|
|
44,591
|
|
Accounts Receivable
Provision
|
137,611
|
|
|
113,077
|
|
Provision for Credit
Losses on Loans Receivable
|
9,223
|
|
|
9,540
|
|
Stock-Based
Compensation
|
14,231
|
|
|
15,143
|
|
Deferred Income
Taxes
|
19,928
|
|
|
39,684
|
|
Impairment of
Assets
|
26,267
|
|
|
20,098
|
|
Non-Cash Lease
Expense
|
58,073
|
|
|
—
|
|
Other Changes,
Net
|
(3,390)
|
|
|
(1,076)
|
|
Changes in Operating
Assets and Liabilities, Net of Effects of Acquisitions and
Dispositions:
|
|
|
|
Additions to Lease
Merchandise
|
(1,141,863)
|
|
|
(1,034,838)
|
|
Book Value of Lease
Merchandise Sold or Disposed
|
196,219
|
|
|
199,846
|
|
Accounts
Receivable
|
(126,112)
|
|
|
(97,385)
|
|
Prepaid Expenses and
Other Assets
|
(6,847)
|
|
|
(7,965)
|
|
Income Tax
Receivable
|
17,227
|
|
|
54,242
|
|
Operating Lease
Liabilities
|
(62,541)
|
|
|
—
|
|
Accounts Payable and
Accrued Expenses
|
(21,465)
|
|
|
(36,165)
|
|
Customer Deposits and
Advance Payments
|
(200)
|
|
|
1,819
|
|
Cash Provided by
Operating Activities
|
244,639
|
|
|
266,780
|
|
INVESTING
ACTIVITIES:
|
|
|
|
Investments in Loans
Receivable
|
(29,506)
|
|
|
(31,797)
|
|
Proceeds from Loans
Receivable
|
27,720
|
|
|
30,150
|
|
Proceeds from
Investments
|
—
|
|
|
666
|
|
Outflows on Purchases
of Property, Plant and Equipment
|
(48,059)
|
|
|
(32,785)
|
|
Proceeds from
Property, Plant and Equipment
|
1,425
|
|
|
4,349
|
|
Outflows on
Acquisitions of Businesses and Customer Agreements, Net of Cash
Acquired
|
(7,612)
|
|
|
(14,401)
|
|
Proceeds from
Dispositions of Businesses and Customer Agreements, Net of Cash
Disposed
|
755
|
|
|
318
|
|
Cash Used in
Investing Activities
|
(55,277)
|
|
|
(43,500)
|
|
FINANCING
ACTIVITIES:
|
|
|
|
Repayments on
Revolving Facility, Net
|
(16,000)
|
|
|
—
|
|
Repayments on
Debt
|
(61,465)
|
|
|
(96,173)
|
|
Dividends
Paid
|
(4,717)
|
|
|
(2,111)
|
|
Acquisition of
Treasury Stock
|
(14,414)
|
|
|
(68,432)
|
|
Issuance of Stock
Under Stock Option Plans
|
5,056
|
|
|
4,134
|
|
Shares Withheld for
Tax Payments
|
(12,977)
|
|
|
(17,282)
|
|
Debt Issuance
Costs
|
—
|
|
|
(55)
|
|
Cash Used in
Financing Activities
|
(104,517)
|
|
|
(179,919)
|
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH AND CASH EQUIVALENTS
|
119
|
|
|
(75)
|
|
Increase in Cash and
Cash Equivalents
|
84,964
|
|
|
43,286
|
|
Cash and Cash
Equivalents at Beginning of Period
|
15,278
|
|
|
51,037
|
|
Cash and Cash
Equivalents at End of Period
|
$
|
100,242
|
|
|
$
|
94,323
|
|
Aaron's, Inc. and
Subsidiaries
|
Quarterly Revenues
by Segment
|
(In
thousands)
|
|
|
(Unaudited)
|
|
Three Months
Ended
|
|
June 30,
2019
|
|
Progressive
Leasing1
|
Aaron's
Business
|
DAMI
|
Consolidated
Total
|
Lease Revenues and
Fees
|
$
|
516,333
|
|
$
|
391,232
|
|
$
|
—
|
|
$
|
907,565
|
|
Retail
Sales
|
—
|
|
8,898
|
|
—
|
|
8,898
|
|
Non-Retail
Sales
|
—
|
|
34,124
|
|
—
|
|
34,124
|
|
Franchise Royalties
and Fees
|
—
|
|
8,605
|
|
—
|
|
8,605
|
|
Interest and Fees on
Loans Receivable
|
—
|
|
—
|
|
8,610
|
|
8,610
|
|
Other
|
—
|
|
339
|
|
—
|
|
339
|
|
Total
Revenues
|
$
|
516,333
|
|
$
|
443,198
|
|
$
|
8,610
|
|
$
|
968,141
|
|
|
1 For the
three months ended June 30, 2019, Progressive Leasing incurred
bad debt expense of $59,374 which was recorded as a reduction to
Lease Revenues and Fees as a result of the Company's adoption of
ASC 842, Leases.
|
|
|
(Unaudited)
|
|
Three Months
Ended
|
|
June 30,
2018
|
|
Progressive
Leasing
|
Aaron's
Business
|
DAMI
|
Consolidated
Total
|
Lease Revenues and
Fees
|
$
|
483,666
|
|
$
|
362,272
|
|
$
|
—
|
|
$
|
845,938
|
|
Retail
Sales
|
—
|
|
6,592
|
|
—
|
|
6,592
|
|
Non-Retail
Sales
|
—
|
|
53,661
|
|
—
|
|
53,661
|
|
Franchise Royalties
and Fees
|
—
|
|
12,125
|
|
—
|
|
12,125
|
|
Interest and Fees on
Loans Receivable
|
—
|
|
—
|
|
9,208
|
|
9,208
|
|
Other
|
—
|
|
335
|
|
—
|
|
335
|
|
Total
Revenues
|
$
|
483,666
|
|
$
|
434,985
|
|
$
|
9,208
|
|
$
|
927,859
|
|
Progressive Bad Debt
Expense
|
50,036
|
|
—
|
|
—
|
|
50,036
|
|
Total Revenues, net
of Progressive Bad Debt Expense1
|
$
|
433,630
|
|
$
|
434,985
|
|
$
|
9,208
|
|
$
|
877,823
|
|
|
1 See the
"Use of Non-GAAP Financial Information" section accompanying this
press release.
|
Aaron's, Inc. and
Subsidiaries
|
Six Months
Revenues by Segment
|
(In
thousands)
|
|
|
(Unaudited)
|
|
Six Months
Ended
|
|
June 30,
2019
|
|
Progressive
Leasing1
|
Aaron's
Business
|
DAMI
|
Consolidated
Total
|
Lease Revenues and
Fees
|
$
|
1,039,734
|
|
$
|
811,988
|
|
$
|
—
|
|
$
|
1,851,722
|
|
Retail
Sales
|
—
|
|
21,707
|
|
—
|
|
21,707
|
|
Non-Retail
Sales
|
—
|
|
71,105
|
|
—
|
|
71,105
|
|
Franchise Royalties
and Fees
|
—
|
|
17,812
|
|
—
|
|
17,812
|
|
Interest and Fees on
Loans Receivable
|
—
|
|
—
|
|
17,256
|
|
17,256
|
|
Other
|
—
|
|
642
|
|
—
|
|
642
|
|
Total
Revenues
|
$
|
1,039,734
|
|
$
|
923,254
|
|
$
|
17,256
|
|
$
|
1,980,244
|
|
|
1 For the
six months ended June 30, 2019, Progressive Leasing incurred
bad debt expense of $115,444 which was recorded as a reduction to
Lease Revenues and Fees as a result of the Company's adoption of
ASC 842, Leases.
|
|
|
(Unaudited)
|
|
Six Months
Ended
|
|
June 30,
2018
|
|
Progressive
Leasing
|
Aaron's
Business
|
DAMI
|
Consolidated
Total
|
Lease Revenues and
Fees
|
$
|
970,183
|
|
$
|
745,822
|
|
$
|
—
|
|
$
|
1,716,005
|
|
Retail
Sales
|
—
|
|
15,108
|
|
—
|
|
15,108
|
|
Non-Retail
Sales
|
—
|
|
106,891
|
|
—
|
|
106,891
|
|
Franchise Royalties
and Fees
|
—
|
|
24,987
|
|
—
|
|
24,987
|
|
Interest and Fees on
Loans Receivable
|
—
|
|
—
|
|
18,750
|
|
18,750
|
|
Other
|
—
|
|
927
|
|
—
|
|
927
|
|
Total
Revenues
|
$
|
970,183
|
|
$
|
893,735
|
|
$
|
18,750
|
|
$
|
1,882,668
|
|
Progressive Bad Debt
Expense
|
96,561
|
|
—
|
|
—
|
|
96,561
|
|
Total Revenues, net
of Progressive Bad Debt Expense1
|
$
|
873,622
|
|
$
|
893,735
|
|
$
|
18,750
|
|
$
|
1,786,107
|
|
|
1 See the
"Use of Non-GAAP Financial Information" section accompanying this
press release.
|
Use of Non-GAAP Financial Information:
Non-GAAP net earnings, non-GAAP diluted earnings per share,
EBITDA and Adjusted EBITDA are supplemental measures of our
performance that are not calculated in accordance with generally
accepted accounting principles in the
United States ("GAAP"). Non-GAAP net earnings and
non-GAAP diluted earnings per share for the second quarter of 2019
each exclude $5.4 million in
Progressive Leasing-related intangible amortization expense,
$4.0 million in amortization expense
resulting from franchisee acquisitions, $0.2
million in acquisition transaction and transition costs
related to franchisee acquisitions and $18.7
million in restructuring charges. For the first six months
of 2019 Non-GAAP net earnings and non-GAAP diluted earnings per
share excludes $10.8 million in
Progressive Leasing-related intangible amortization expense,
$8.0 million in amortization expense
resulting from franchisee acquisitions, $0.3
million in acquisition transaction and transition costs
related to franchisee acquisitions and $32.0
million in restructuring charges. Non-GAAP net earnings and
non-GAAP diluted earnings per share for the second quarter of 2018
exclude $5.4 million in Progressive
Leasing-related intangible amortization expense, $1.2 million in amortization expense resulting
from franchisee acquisitions, $0.9
million in net restructuring charge reversals and
$21.6 million of charges related to
the full impairment of the Company's PerfectHome Investment and the
related expenses incurred. For the first six months of 2018
Non-GAAP net earnings and non-GAAP diluted earnings per share
excludes $10.8 million in Progressive
Leasing-related intangible amortization expense, $2.4 million in amortization expense resulting
from franchisee acquisitions, $24.0
thousand in restructuring charges, $0.2 million in tax effects related to a Tax Act
adjustment and $21.6 million of
charges related to the full impairment of the Company's PerfectHome
Investment and the related expenses incurred.
The EBITDA and Adjusted EBITDA figures presented in this press
release are calculated as the Company's earnings before interest
expense, depreciation on property, plant and equipment,
amortization of intangible assets and income taxes. Adjusted
EBITDA also excludes the other adjustments described in the
calculation of non-GAAP net earnings above.
Management believes that non-GAAP net earnings, non-GAAP diluted
earnings per share, EBITDA and Adjusted EBITDA provide relevant and
useful information, and are widely used by analysts, investors and
competitors in our industry as well as by our management in
assessing both consolidated and business unit performance.
Non-GAAP net earnings and non-GAAP diluted earnings provides
management and investors with an understanding of the results from
the primary operations of our business by excluding the effects of
certain items that generally arose from larger, one-time
transactions that are not reflective of the ordinary earnings
activity of our operations. This measure may be useful to an
investor in evaluating the underlying operating performance of our
business.
EBITDA and Adjusted EBITDA also provides management and
investors with an understanding of one aspect of earnings before
the impact of investing and financing charges and income
taxes. These measures may be useful to an investor in
evaluating our operating performance and liquidity because the
measures:
- Are widely used by investors to measure a company's operating
performance without regard to items excluded from the calculation
of such measure, which can vary substantially from company to
company depending upon accounting methods, book value of assets,
capital structure and the method by which assets were acquired,
among other factors.
- Are a financial measurement that is used by rating agencies,
lenders and other parties to evaluate our creditworthiness.
- Are used by our management for various purposes, including as a
measure of performance of our operating entities and as a basis for
strategic planning and forecasting.
This press release also discloses non-GAAP revenues for periods
prior to January 1, 2019 as if the
lessor accounting impacts of ASC 842 were in effect during the
three and six months ended June 30, 2018. "Total Revenues, net
of Progressive Bad Debt Expense" and the related percentages for
the comparable prior year periods are a supplemental measure of our
performance that are not calculated in accordance with GAAP in
place during 2018. These non-GAAP measures assume that Progressive
bad debt expense is recorded as a reduction to lease revenues and
fees instead of within operating expenses in 2018. Please see Note
1 to the condensed consolidated financial statements and the
"Results of Operations" section of our Form 10-Q for the quarter
ended June 30, 2019 for a more comprehensive disclosure of bad
debt expense and the impact of the adoption of ASC 842 related to
accounting for leases for the prospective periods beginning with
the first quarter of 2019.
Management believes these non-GAAP measures for 2018 provide
relevant and useful information for users of our financial
statements, as it provides comparability with the financial results
we are reporting beginning in 2019 when ASC 842 became effective
and we began reporting Progressive bad debt expense as a reduction
to lease revenues and fees. We believe these non-GAAP measures
provide management and investors the ability to better understand
the results from the primary operations of our business in 2019
compared with 2018 by classifying Progressive bad debt expense
consistently between the periods.
Finally, this press release presents pre-tax, pre-provision loss
for DAMI, which is also a supplemental measure not calculated in
accordance with GAAP. Management believes this measure is
useful because it gives management and investors an additional,
supplemental metric to assess DAMI's underlying operational
performance for the period. Due to the growth of our
originated credit card loan portfolio after our October 2015 acquisition of DAMI, we believe
pre-provision, pre-tax loss helps investors to assess DAMI's
operating performance until such time as the credit card portfolio
reaches levels which management believes will be normal and
recurring. Management uses this measure as one of its bases
for strategic planning and forecasting for DAMI. Our use of
pre-provision, pre-tax loss may not be comparable to similar
measures disclosed by other companies, because not all companies
and analysts calculate these measures in the same manner.
Non-GAAP financial measures, however, should not be used as a
substitute for, or considered superior to, measures of financial
performance prepared in accordance with GAAP, such as the Company's
GAAP basis net earnings and diluted earnings per share and the GAAP
revenues and earnings before income taxes of the Company's
segments, which are also presented in the press release.
Further, we caution investors that amounts presented in accordance
with our definitions of non-GAAP net earnings, non-GAAP diluted
earnings per share, EBITDA, Adjusted EBITDA, Total revenues net of
Progressive bad debt expense and the related percentages for the
comparable prior year period, and pre-tax, pre-provision loss may
not be comparable to similar measures disclosed by other companies,
because not all companies and analysts calculate these measures in
the same manner.
Reconciliation of
Net Earnings and Earnings Per Share Assuming Dilution to
Non-GAAP
|
Net Earnings and
Earnings Per Share Assuming Dilution
|
(In thousands,
except per share)
|
|
|
(Unaudited)
Three Months
Ended
|
|
(Unaudited)
Six Months
Ended
|
|
June 30,
|
|
June 30,
|
|
2019
|
2018
|
|
2019
|
2018
|
Net
Earnings
|
$
|
42,650
|
|
$
|
38,501
|
|
|
$
|
98,728
|
|
$
|
90,747
|
|
Add Progressive
Leasing-Related Intangible Amortization Expense
(1)(2)
|
4,069
|
|
4,176
|
|
|
8,420
|
|
8,429
|
|
Add
Franchisee-Related Intangible Amortization
Expense(3)(4)
|
2,971
|
|
914
|
|
|
6,216
|
|
1,868
|
|
Add Restructuring
Expense (Reversal), net (5)(6)
|
14,065
|
|
(679)
|
|
|
24,866
|
|
19
|
|
Add Acquisition
Transaction and Transition Costs(7)
|
150
|
|
—
|
|
|
243
|
|
—
|
|
Impairment of
Investment and Related Expenses(8)
|
—
|
|
16,658
|
|
|
—
|
|
16,811
|
|
Tax Act
Adjustments
|
—
|
|
—
|
|
|
—
|
|
193
|
|
Non-GAAP Net
Earnings
|
$
|
63,905
|
|
$
|
59,570
|
|
|
$
|
138,473
|
|
$
|
118,067
|
|
|
|
|
|
|
|
Earnings Per Share
Assuming Dilution
|
$
|
0.62
|
|
$
|
0.54
|
|
|
$
|
1.44
|
|
$
|
1.27
|
|
Add Progressive
Leasing-Related Intangible Amortization Expense
(1)(2)
|
0.06
|
|
0.06
|
|
|
0.12
|
|
0.12
|
|
Add
Franchisee-Related Intangible Amortization
Expense(3)(4)
|
0.04
|
|
0.01
|
|
|
0.09
|
|
0.03
|
|
Add Restructuring
Expense, net(5)(6)
|
0.20
|
|
(0.01)
|
|
|
0.36
|
|
—
|
|
Add Acquisition
Transaction and Transition Costs(7)
|
—
|
|
—
|
|
|
—
|
|
—
|
|
Impairment of
Investment and Related Expenses(8)
|
—
|
|
0.24
|
|
|
—
|
|
0.24
|
|
Tax Act
Adjustments
|
—
|
|
—
|
|
|
—
|
|
—
|
|
Non-GAAP Earnings Per
Share Assuming Dilution(9)
|
$
|
0.93
|
|
$
|
0.84
|
|
|
$
|
2.01
|
|
$
|
1.65
|
|
|
|
|
|
|
|
Weighted Average
Shares Outstanding Assuming Dilution
|
68,793
|
|
70,837
|
|
|
68,784
|
|
71,428
|
|
|
(1) Net of
taxes of $1,352 and $2,422 for the three and six months ended
June 30, 2019 calculated using the effective tax rate for the
respective periods.
|
(2) Net of
taxes of $1,245 and $2,413 for the three and six months ended
June 30, 2018 calculated using the effective tax rate for the
respective periods.
|
(3) Net of
taxes of $987 and $1,788 for the three and six months ended
June 30, 2019 calculated using the effective tax rate for the
respective periods.
|
(4) Net of
taxes of $272 and $535 for the three and six months ended
June 30, 2018 calculated using the effective tax rate for the
respective periods.
|
(5) Net of
taxes of $4,673 and $7,153 for the three and six months ended
June 30, 2019 calculated using the effective tax rate for the
respective periods.
|
(6) Net of
taxes of $(203) and $5 for the three and six months ended
June 30, 2018 calculated using the effective tax rate for the
respective periods.
|
(7) Net of
taxes of $50 and $70 for the three and six months ended
June 30, 2019 calculated using the effective tax rate for the
respective periods.
|
(8) Net of
taxes of $4,967 and $4,814 for the three and six months ended
June 30, 2018 calculated using the effective tax rate for the
respective periods.
|
(9) In some
cases, the sum of individual EPS amounts may not equal total
non-GAAP EPS calculations due to rounding.
|
DAMI Pre-tax,
Pre-provision Loss
|
(In
thousands)
|
|
|
(Unaudited)
Three Months
Ended
|
(Unaudited)
Six Months
Ended
|
|
June 30,
|
June 30,
|
|
2019
|
2018
|
2019
|
2018
|
Loss Before Income
Taxes
|
$
|
(1,725)
|
|
$
|
(2,292)
|
|
$
|
(4,393)
|
|
$
|
(3,598)
|
|
Adjustment to
Increase (Decrease) Allowance for Loan Losses During
Period
|
420
|
|
887
|
|
(187)
|
|
132
|
|
Pre-tax,
Pre-provision Loss
|
$
|
(1,305)
|
|
$
|
(1,405)
|
|
$
|
(4,580)
|
|
$
|
(3,466)
|
|
Aaron's, Inc. and
Subsidiaries
|
Non-GAAP Financial
Information
|
Quarterly Segment
EBITDA
|
(In
thousands)
|
|
|
(Unaudited)
|
|
Three Months
Ended
|
|
June 30,
2019
|
|
Progressive
Leasing
|
Aaron's
Business
|
DAMI
|
Consolidated
Total
|
Net
Earnings
|
|
|
|
$
|
42,650
|
|
Income
Taxes1
|
|
|
|
14,169
|
|
Earnings (Loss)
Before Income Taxes
|
58,406
|
|
138
|
|
(1,725)
|
|
56,819
|
|
Interest
Expense
|
2,242
|
|
1,209
|
|
849
|
|
4,300
|
|
Depreciation
|
2,160
|
|
15,077
|
|
201
|
|
17,438
|
|
Amortization
|
5,421
|
|
4,296
|
|
145
|
|
9,862
|
|
EBITDA
|
$
|
68,229
|
|
$
|
20,720
|
|
$
|
(530)
|
|
$
|
88,419
|
|
Restructuring
Expenses
|
—
|
|
18,738
|
|
—
|
|
18,738
|
|
Acquisition
Transaction and Transition Costs
|
—
|
|
200
|
|
—
|
|
200
|
|
Adjusted
EBITDA
|
$
|
68,229
|
|
$
|
39,658
|
|
$
|
(530)
|
|
$
|
107,357
|
|
|
|
(Unaudited)
|
|
Three Months
Ended
|
|
June 30,
2018
|
|
Progressive
Leasing
|
Aaron's
Business
|
DAMI
|
Consolidated
Total
|
Net
Earnings
|
|
|
|
$
|
38,501
|
|
Income
Taxes1
|
|
|
|
11,479
|
|
Earnings (Loss)
Before Income Taxes
|
44,575
|
|
7,697
|
|
(2,292)
|
|
49,980
|
|
Interest
Expense
|
4,249
|
|
(1,210)
|
|
768
|
|
3,807
|
|
Depreciation
|
1,531
|
|
13,069
|
|
257
|
|
14,857
|
|
Amortization
|
5,421
|
|
2,053
|
|
145
|
|
7,619
|
|
EBITDA
|
$
|
55,776
|
|
$
|
21,609
|
|
$
|
(1,122)
|
|
$
|
76,263
|
|
Restructuring
Reversals, Net
|
—
|
|
(872)
|
|
(10)
|
|
(882)
|
|
Impairment of
Investment and Related Expenses
|
—
|
|
21,625
|
|
—
|
|
21,625
|
|
Adjusted
EBITDA
|
$
|
55,776
|
|
$
|
42,362
|
|
$
|
(1,132)
|
|
$
|
97,006
|
|
|
(1) Taxes are
calculated on a consolidated basis and are not identifiable by
company segments.
|
Aaron's, Inc. and
Subsidiaries
|
Non-GAAP Financial
Information
|
Six Months Segment
EBITDA
|
(In
thousands)
|
|
|
(Unaudited)
|
|
Six Months
Ended
|
|
June 30,
2019
|
|
Progressive
Leasing
|
Aaron's
Business
|
DAMI
|
Consolidated
Total
|
Net
Earnings
|
|
|
|
$
|
98,728
|
|
Income
Taxes1
|
|
|
|
28,399
|
|
Earnings (Loss)
Before Income Taxes
|
113,794
|
|
17,726
|
|
(4,393)
|
|
127,127
|
|
Interest
Expense
|
4,964
|
|
2,563
|
|
1,729
|
|
9,256
|
|
Depreciation
|
3,947
|
|
29,665
|
|
391
|
|
34,003
|
|
Amortization
|
10,842
|
|
8,727
|
|
290
|
|
19,859
|
|
EBITDA
|
$
|
133,547
|
|
$
|
58,681
|
|
$
|
(1,983)
|
|
$
|
190,245
|
|
Restructuring
Expenses
|
—
|
|
32,019
|
|
—
|
|
32,019
|
|
Acquisition
Transaction and Transition Costs
|
—
|
|
313
|
|
—
|
|
313
|
|
Adjusted
EBITDA
|
$
|
133,547
|
|
$
|
91,013
|
|
$
|
(1,983)
|
|
$
|
222,577
|
|
|
|
|
|
|
|
(Unaudited)
|
|
Six Months
Ended
|
|
June 30,
2018
|
|
Progressive
Leasing
|
Aaron's
Business
|
DAMI
|
Consolidated
Total
|
Net
Earnings
|
|
|
|
$
|
90,747
|
|
Income
Taxes1
|
|
|
|
25,985
|
|
Earnings (Loss)
Before Income Taxes
|
79,554
|
|
40,776
|
|
(3,598)
|
|
116,732
|
|
Interest
Expense
|
8,624
|
|
(2,033)
|
|
1,542
|
|
8,133
|
|
Depreciation
|
2,999
|
|
26,155
|
|
499
|
|
29,653
|
|
Amortization
|
10,842
|
|
3,806
|
|
290
|
|
14,938
|
|
EBITDA
|
$
|
102,019
|
|
$
|
68,704
|
|
$
|
(1,267)
|
|
$
|
169,456
|
|
Restructuring
Expenses (Reversals), Net
|
—
|
|
34
|
|
(10)
|
|
24
|
|
Impairment of
Investment and Related Expenses
|
—
|
|
21,625
|
|
—
|
|
21,625
|
|
Adjusted
EBITDA
|
$
|
102,019
|
|
$
|
90,363
|
|
$
|
(1,277)
|
|
$
|
191,105
|
|
|
(1) Taxes are
calculated on a consolidated basis and are not identifiable by
company segments.
|
Reconciliation of
2019 Current Outlook for Adjusted EBITDA
|
(In
thousands)
|
|
|
Fiscal Year 2019
Ranges
|
|
Progressive
Leasing
|
Aaron's
Business
|
DAMI
|
Consolidated
Total
|
Estimated Net
Earnings
|
—
|
—
|
—
|
$208,200 -
$224,700
|
Taxes1
|
—
|
—
|
—
|
63,500 -
69,000
|
Projected Earnings
Before Taxes
|
$237,000 -
$247,000
|
$45,200 -
$55,200
|
$(10,500) -
$(8,500)
|
271,700 -
293,700
|
Interest
Expense
|
9,000
|
6,000
|
3,500
|
18,500
|
Depreciation
|
8,000
|
62,500
|
1,000
|
71,500
|
Amortization
|
21,000
|
14,000
|
1,000
|
36,000
|
Projected
EBITDA
|
275,000 -
285,000
|
127,700 -
137,700
|
(5,000) -
(3,000)
|
397,700 -
419,700
|
Projected Other
Adjustments, Net2
|
—
|
32,300
|
—
|
32,300
|
Projected Adjusted
EBITDA
|
$275,000 -
$285,000
|
$160,000 -
$170,000
|
$(5,000) -
$(3,000)
|
$430,000 -
$452,000
|
|
(1)
Taxes are calculated on a consolidated basis and are not
identifiable by company divisions.
|
(2) Projected Other
Adjustments include the non-GAAP charges related to the Aaron's
Business restructuring.
|
Reconciliation of
2019 Previous Outlook for Adjusted EBITDA
|
(In
thousands)
|
|
|
Fiscal Year 2019
Ranges
|
|
Progressive
Leasing
|
Aaron's
Business
|
DAMI
|
Consolidated
Total
|
Estimated Net
Earnings
|
—
|
—
|
—
|
$210,300 -
$231,000
|
Taxes1
|
—
|
—
|
—
|
64,700 -
71,000
|
Projected Earnings
Before Taxes
|
$216,500 -
$231,500
|
$68,000 -
$78,000
|
$(9,500) -
$(7,500)
|
275,000 -
302,000
|
Interest
Expense
|
13,500
|
2,500
|
3,500
|
19,500
|
Depreciation
|
8,000
|
66,000
|
1,500
|
75,000
|
Amortization
|
22,000
|
10,000
|
—
|
32,000
|
Projected
EBITDA
|
260,000 -
275,000
|
146,500 -
156,500
|
(5,000) -
(3,000)
|
401,500 -
428,500
|
Projected Other
Adjustments, Net2
|
—
|
13,500
|
—
|
13,500
|
Projected Adjusted
EBITDA
|
$260,000 -
$275,000
|
$160,000 -
$170,000
|
$(5,000) -
$(3,000)
|
$415,000 -
$442,000
|
|
(1) Taxes
are calculated on a consolidated basis and are not identifiable by
company divisions.
|
(2)
Projected Other Adjustments include the non-GAAP charges related to
the Aaron's Business restructuring.
|
Reconciliation of
2019 Current Outlook for Earnings Per Share
|
Assuming Dilution
to Non-GAAP Earnings Per Share Assuming Dilution
|
|
|
Fiscal Year 2019
Range
|
|
Low
|
High
|
Projected Earnings
Per Share Assuming Dilution
|
$
|
3.11
|
|
$
|
3.26
|
|
Add Projected
Intangible Amortization Expense1
|
0.38
|
|
0.38
|
|
Add Sum of Other
Adjustments2
|
0.36
|
|
0.36
|
|
Projected Non-GAAP
Earnings Per Share Assuming Dilution
|
$
|
3.85
|
|
$
|
4.00
|
|
|
(1)
Includes projected amortization expense related to the acquisition
of Progressive Leasing and the franchisee acquisitions.
|
(2)
Includes the projected non-GAAP charges related to the Aaron's
Business restructuring.
|
Reconciliation of
2019 Previous Outlook for Earnings Per Share
|
Assuming Dilution
to Non-GAAP Earnings Per Share Assuming Dilution
|
|
|
Fiscal Year 2019
Range
|
|
Low
|
High
|
Projected Earnings
Per Share Assuming Dilution
|
$
|
3.15
|
|
$
|
3.35
|
|
Add Projected
Intangible Amortization Expense1
|
0.35
|
|
0.35
|
|
Add Sum of Other
Adjustments2
|
0.15
|
|
0.15
|
|
Projected Non-GAAP
Earnings Per Share Assuming Dilution
|
$
|
3.65
|
|
$
|
3.85
|
|
|
(1)
Includes projected amortization expense related to the acquisition
of Progressive Leasing and the franchisee acquisitions.
|
(2)
Includes the projected non-GAAP charges related to the Aaron's
Business restructuring.
|
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SOURCE Aaron's, Inc.