ATLANTA, March 23, 2020 /PRNewswire/ -- Aaron's, Inc.
(NYSE: AAN), a leading omnichannel provider of lease-purchase
solutions, today announced business updates in connection with the
continued spread of COVID-19.
"Over the last several weeks, we have been aggressively adapting
our business in reaction to the ongoing COVID-19 pandemic while
following the guidance of local, state and federal authorities,"
said John Robinson, Aaron's, Inc.
President and Chief Executive Officer. "Our primary concern is the
health and safety of our associates and customers. We are
taking significant steps to reduce the risk of exposure, while
continuing to provide our customers with the essential products
they need such as refrigerators, freezers, mattresses and
computers. We are adapting our operations to protect our associates
while still serving our customers who need our products now more
In response to the virus, the following are several of the key
actions we have taken:
- Progressive continues to support its retail partners and has
adapted to the needs of those who remain open for business
- Progressive's customer support, merchant support, and customer
payment assistance associates have been transitioned to work from
home with all operations functioning remotely
- Nearly all Progressive executive and support associates are
working from home and continue to support the business
The Aaron's Business
- Except where otherwise directed by governmental authorities,
the Aaron's Business is shifting to e-commerce and curbside service
only for all its corporate stores until further notice. Curbside
services will include order processing, merchandise pickup, returns
- The Aaron's Business will continue to deliver orders to
customers' homes. Deliveries are being made to the customer's door
and all in-home installation services have been suspended
- Nearly all Aaron's Business executives and support associates
are working from home and continue to support the business
"We are taking these precautionary measures to protect our
associates, customers and the public. As this situation evolves and
government mandates change, we will continue to adjust our
policies," Robinson continued.
"While our balance sheet is conservatively capitalized, we have
drawn $300 million on our revolving
credit facility to bolster the Company's cash position. This
revolver draw, combined with strong operating cash flow in the
first quarter of the year, resulted in a cash balance of
approximately $550 million as of
March 15. In addition, we have
$185 million of remaining
availability on the revolver, which gives us access to further
liquidity if needed," said Mr. Robinson.
While each of the Company's businesses were ahead of
expectations on revenue, earnings, portfolio performance and cash
generation through March 15, the
Company is withdrawing its full year 2020 financial outlook,
previously issued on February 20,
2020, due to the uncertainties resulting from COVID-19.
Management is taking actions at both Progressive and the Aaron's
Business to protect its businesses and will continue to do so until
we return to a more normalized business environment.
Additional updates will be provided as appropriate.
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 22,000 retail
partner locations in 46 states and the District of Columbia, including e-commerce
merchants. The Aaron's Business engages in the sales and lease
ownership and specialty retailing of furniture, home appliances,
consumer electronics 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. Vive Financial ("Vive", formerly Dent- A-Med, Inc.),
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
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
"believe," "expects," "aimed" "position," "expectations,"
"outlook," and similar terminology. These risks and
uncertainties include factors such as the effects on our business
of the COVID-19 pandemic, including its impact on our revenue and
overall financial performance and the manner in which we are able
to conduct our operations; increases in lease merchandise
write-offs and the provision for returns and uncollectible renewal
payments in light of the impact of the COVID-19 pandemic; 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, 2019. Statements in this
press release that are "forward-looking" include without limitation
statements about our ability to effectively manage our business
through the challenges presented by the COVID-19 pandemic and any
longer-lasting economic downturn resulting therefrom; our ability
to continue servicing our customers during the COVID-19 pandemic;
customer demand for our products; the effectiveness of the measures
we are taking to protect our customers, employees and the general
public from becoming infected with the coronavirus; and our
liquidity position as we face the challenges of the COVID-19
pandemic. 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.
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SOURCE Aaron's, Inc.