ATLANTA, July 25, 2022 /PRNewswire/ -- The Aaron's Company, Inc. (NYSE: AAN), a leading, technology-enabled, omnichannel provider of lease-to-own and retail purchase solutions, today announced financial results for the second quarter ended June 30, 2022. This quarter is the Company's first report on a consolidated basis, incorporating results from BrandsMart U.S.A., acquired April 1, 2022.
"With the acquisition of BrandsMart U.S.A., consolidated revenues increased in the second quarter, and we are encouraged by the performance of this new business segment," said Douglas Lindsay, Chief Executive Officer of The Aaron's Company, Inc. "In the Aaron's Business, customer demand and payment activity progressively worsened through the quarter as high inflation impacted the lower-income consumer. In response to these challenging market conditions, we are leveraging our centralized lease decisioning and digital servicing platforms to maintain relationships with our customers and strengthening actions to control costs."
"We continue to strategically invest in our growing e-commerce channel, our high-performing GenNext store program, and the value creation opportunities available through the BrandsMart acquisition," Lindsay added. "Together with our strong balance sheet and liquidity, we believe these investments enable us to continue delivering a market leading value proposition to a large and increasingly diversified customer base that will expand our market share and position us for future growth."
Second Quarter 2022 Financial Highlights
The Aaron's Company, Inc. (the "Company") conducts its operations through two primary operating business segments: 1) the Aaron's Business segment, which includes, Company-operated Aaron's stores, the Aarons.com e-commerce platform, Aaron's franchise operations, BrandsMart Leasing, a lease-to-own solution offered to customers of BrandsMart U.S.A., and Woodhaven, a furniture manufacturing operation (collectively, the "Aaron's Business"); and 2) the BrandsMart segment, which includes, BrandsMart U.S.A. retail stores and the Brandsmartusa.com e-commerce platform (collectively, "BrandsMart"). The financial and operating results for the BrandsMart segment do not include BrandsMart Leasing and neither business segment results include unallocated corporate expenses. Additionally, the Company's financial and operating results for the second quarter of 2022 include the results of operations of BrandsMart subsequent to the April 1, 2022 acquisition, while financial and operating results for all periods prior to the April 1, 2022 acquisition do not include BrandsMart. For all periods presented, the Company has retroactively adjusted disclosures to align with the new reportable segments.
Consolidated Results
The Company's total revenues were $610.4 million in the second quarter of 2022 compared with $467.5 million for the second quarter of 2021. Net losses were $5.3 million for the second quarter of 2022 compared with net earnings of $33.0 million in the prior year period. Net losses for the second quarter of 2022 include the effects of a one-time, non-cash charge for a fair value adjustment to merchandise inventories of $23.0 million, BrandsMart acquisition-related costs of $8.0 million, restructuring charges of $5.6 million, acquisition-related intangible amortization expense of $2.8 million, and separation costs of $0.2 million. These charges were partially offset by a net tax benefit of $4.8 million related to a remeasurement of the Company's deferred state tax balances in conjunction with the BrandsMart acquisition. Net earnings in the second quarter of 2021 included restructuring charges of $1.8 million and separation costs of $1.2 million.
Adjusted EBITDA was $48.1 million in the second quarter of 2022, a decrease of 26.4% compared to the second quarter of 2021. As a percentage of total consolidated revenues, adjusted EBITDA was 7.9% in the second quarter of 2022 compared with 14.0% in the prior year second quarter. The declines in adjusted EBITDA and adjusted EBITDA margin were primarily due to lower lease renewal rates, higher provision for lease merchandise write-offs, and higher other operating expenses, partially offset by lower personnel costs in the Aaron's Business. The decline in adjusted EBITDA was also offset by $10.5 million of adjusted EBITDA generated from the BrandsMart acquisition.
Diluted losses per share were $0.17 in the second quarter of 2022 compared with diluted earnings per share of $0.95 in the second quarter of 2021. On a non-GAAP basis, diluted earnings per share were $0.79 for the second quarter of 2022 compared with $1.05 in the second quarter of 2021.
Aaron's Business Segment Results
Total revenues for the Aaron's Business were $430.2 million in the second quarter of 2022, a decrease of 8.0% compared to the second quarter of 2021, primarily due to lower lease revenues and retail sales. The lower lease revenues were primarily attributable to lower lease renewal rates and lower exercise of early purchase options. At the end of the second quarter of 2022 our overall lease portfolio size was $130.8 million, a decrease of 1.5% compared to the end of the second quarter of 2021. The lease renewal rate for the second quarter of 2022 was 88.5%, compared to 92.4% in the government stimulus-aided second quarter of 2021. E-commerce revenues increased 4.0% in the second quarter of 2022 compared to the same period in 2021 and represented 15.4% of lease revenues. During the quarter, the Aaron's Business opened 36 GenNext locations, bringing the total to 171 GenNext stores, or 16.1% of total Company-operated Aaron's stores. Lease originations in GenNext stores open less than one year continued growing at a rate of more than 20 percentage points higher than our average legacy stores.
Same store revenues decreased 6.7% as compared to the second quarter of 2021. The decrease was primarily driven by a lower lease renewal rate, lower exercise of early purchase options, and a reduction in retail sales. These factors were partially offset by a larger average same-store lease portfolio size during the quarter.
For the Aaron's Business, earnings before income taxes for the second quarter of 2022 were $29.5 million compared to $61.7 million in the second quarter of 2021.
Adjusted EBITDA for the Aaron's Business was $48.0 million in the second quarter of 2022, a decrease of 38.9% compared to the second quarter of 2021. As a percentage of total revenues for the Aaron's Business, adjusted EBITDA was 11.2% in the second quarter of 2022 compared with 16.8% in the prior year second quarter. The declines in adjusted EBITDA and adjusted EBITDA margin for the Aaron's Business were primarily due to lower lease renewal rates and higher provision for lease merchandise write-offs compared to the government stimulus-aided levels in the second quarter of 2021. Lease merchandise write-offs were 5.7% in the second quarter of 2022, as compared to 2.9% in the second quarter of 2021. Adjusted EBITDA was also impacted by higher other operating expenses offset by lower personnel costs.
BrandsMart Segment Second Quarter Results
The Company's consolidated financial and operating results for all periods prior to the April 1, 2022 acquisition do not include BrandsMart and therefore have not been addressed in the discussion below.
Total revenues for BrandsMart were $181.4 million in the second quarter of 2022. Losses before income taxes for the second quarter of 2022 were $15.9 million. Losses before income taxes in the second quarter of 2022 include a one-time $23.0 million non-cash charge related to a fair value adjustment of the acquired merchandise inventories.
Adjusted EBITDA was $10.5 million in the second quarter, and as a percentage of total revenues for the BrandsMart segment, adjusted EBITDA was 5.8%.
Second Quarter Share Repurchase Program and Dividend Activity
During the second quarter of 2022, the Company repurchased 254,216 shares of Aaron's common stock for a total purchase price of approximately $5.3 million. The total shares outstanding as of June 30, 2022 were 30,777,065, compared to 33,093,668 as of June 30, 2021. The remaining authorized share repurchase amount was $135.8 million as of June 30, 2022. In addition, the Board declared a quarterly cash dividend of $0.1125 per share which was paid to shareholders of record on July 5, 2022.
Updated Full Year 2022 Outlook
The Company has updated its full year 2022 outlook to reflect expectations that continued high inflation and related macroeconomic factors will adversely impact customer demand, lease portfolio size, lease renewal rates, the provision for lease merchandise write-offs, and Company expenses. For the full year 2022, we now expect consolidated total revenues between $2.19 billion and $2.27 billion, adjusted EBITDA between $150.0 million and $170.0 million, and non-GAAP earnings per share between $1.75 and $2.15.
The Company assumes depreciation and amortization of $85.0 million to $90.0 million, and a diluted weighted average share count of approximately 31.5 million shares.
Current Outlook1, 2,3 |
Previous Outlook1, 2 |
||||
Low |
High |
Low |
High |
||
Consolidated Company |
|||||
Total Revenues |
$2.19 billion |
$2.27 billion |
$2.32 billion |
$2.39 billion |
|
Adjusted EBITDA |
$150.0 million |
$170.0 million |
$200.0 million |
$215.0 million |
|
Non-GAAP EPS |
$1.75 |
$2.15 |
$2.65 |
$2.90 |
|
Capital Expenditures |
$100.0 million |
$120.0 million |
$100.0 million |
$125.0 million |
|
Free Cash Flow |
$50.0 million |
$60.0 million |
$45.0 million |
$55.0 million |
|
Aaron's Business |
|||||
Total Revenues |
$1.65 billion |
$1.71 billion |
N/A |
N/A |
|
Adjusted EBITDA |
$180.0 million |
$195.0 million |
N/A |
N/A |
|
Annual Same Store Revenues |
-8.0 % |
-6.0 % |
N/A |
N/A |
|
BrandsMart |
|||||
Total Revenues |
$545.0 million |
$565.0 million |
$545.0 million |
$565.0 million |
|
Adjusted EBITDA |
$20.0 million |
$25.0 million |
$20.0 million |
$25.0 million |
1 |
See the "Use of Non-GAAP Financial Information" section accompanying the press release. |
2 |
BrandsMart outlook represents expected results for the nine months ended December 31, |
3 |
The current outlook for the Aaron's Business and BrandsMart segments does not include |
Conference Call and Webcast
The Company will hold a conference call to discuss its quarterly results on July 26, 2022, at 8:30 a.m. Eastern Time. The public is invited to listen to the conference call by webcast accessible through the Company's investor relations website, 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.
Forward-Looking Statements
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 "remain," "believe," "outlook," "expect," "assume," "assumed," and similar terminology. These risks and uncertainties include factors such as (i) factors impacting consumer spending, including the current inflationary environment and general macroeconomic conditions; (ii) any ongoing impact of the COVID-19 pandemic due to new variants or efficacy and rate of vaccinations, as well as related measures taken by governmental or regulatory authorities to combat the pandemic (iii) the possibility that the operational, strategic and shareholder value creation opportunities expected from the separation and spin-off of the Aaron's Business into what is now The Aaron's Company, Inc. may not be achieved in a timely manner, or at all; (iv) the failure of that separation to qualify for the expected tax treatment; (v) the risk that the Company may fail to realize the benefits expected from the acquisition of BrandsMart U.S.A., including projected synergies; (vi) risks related to the disruption of management time from ongoing business operations due to the acquisition; (vii) failure to promptly and effectively integrate the BrandsMart U.S.A. acquisition; (viii) the effect of the acquisition on our operating results and businesses and on the ability of Aaron's and BrandsMart to retain and hire key personnel or maintain relationships with suppliers; (ix) changes in the enforcement and interpretation of existing laws and regulations and the adoption of new laws and regulations that may unfavorably impact our business; (x) legal and regulatory proceedings and investigations, including those related to consumer protection laws and regulations, customer privacy, third party and employee fraud, and information security; (xi) the risks associated with our strategy and strategic priorities not being successful, including our e-commerce and real estate repositioning and optimization initiatives or being more costly than anticipated; (xii) risks associated with the challenges faced by our business, including the commoditization of consumer electronics, our high fixed-cost operating model and the ongoing labor shortage; (xiii) increased competition from traditional and virtual lease-to-own competitors, as well as from traditional and online retailers and other competitors; (xiv) financial challenges faced by our franchisees; (xv) increases in lease merchandise write-offs, and the potential limited duration and impact of government stimulus and other government payments made by Federal and State governments to counteract the economic impact of the pandemic; (xvi) the availability and prices of supply chain resources, including products and transportation; (xvii) business disruptions due to political or economic instability due to the ongoing conflict between Russia and Ukraine; and (xviii) 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, 2021. Statements in this press release that are "forward-looking" include without limitation statements about: (i) the execution of our key strategic priorities; (ii) the growth and other benefits we expect from executing those priorities; (iii) our 2022 financial performance outlook; (iv) the Company's goals, plans, expectations, and projections regarding the expected benefits of the BrandsMart acquisition; and (v) the expected impact on our 2022 financial performance of additional rounds of government stimulus payments. 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.
THE AARON'S COMPANY, INC. Consolidated Statements of Earnings (In thousands, except per share amounts) |
|||||
(Unaudited) Three Months Ended |
(Unaudited) Six Months Ended |
||||
June 30, |
June 30, |
||||
2022 |
2021 |
2022 |
2021 |
||
REVENUES: |
|||||
Lease Revenues and Fees |
$ 386,513 |
$ 411,621 |
$ 795,831 |
$ 839,262 |
|
Retail Sales |
190,848 |
16,877 |
203,455 |
33,323 |
|
Non-Retail Sales |
27,042 |
32,455 |
54,869 |
62,404 |
|
Franchise Royalties and Other Revenues |
5,981 |
6,542 |
12,311 |
13,560 |
|
610,384 |
467,495 |
1,066,466 |
948,549 |
||
COST OF REVENUES: |
|||||
Depreciation of Lease Merchandise and Other Lease Revenue |
127,772 |
132,319 |
264,436 |
273,296 |
|
Retail Cost of Sales |
165,228 |
10,887 |
174,343 |
21,405 |
|
Non-Retail Cost of Sales |
24,237 |
29,609 |
49,593 |
56,100 |
|
317,237 |
172,815 |
488,372 |
350,801 |
||
GROSS PROFIT |
293,147 |
294,680 |
578,094 |
597,748 |
|
OPERATING EXPENSES: |
|||||
Personnel Costs |
130,257 |
121,426 |
251,367 |
246,289 |
|
Other Operating Expenses, Net |
136,387 |
114,046 |
240,746 |
222,412 |
|
Provision for Lease Merchandise Write-Offs |
22,113 |
12,117 |
44,070 |
25,534 |
|
Restructuring Expenses, Net |
5,582 |
1,794 |
8,917 |
5,235 |
|
Separation Costs |
230 |
1,246 |
770 |
5,636 |
|
Acquisition-Related Costs |
8,033 |
— |
11,497 |
— |
|
302,602 |
250,629 |
557,367 |
505,106 |
||
OPERATING (LOSSES) PROFIT |
(9,455) |
44,051 |
20,727 |
92,642 |
|
Interest Expense |
(2,463) |
(451) |
(2,813) |
(795) |
|
Other Non-Operating (Expense) Income, Net |
(1,556) |
744 |
(2,483) |
1,146 |
|
(LOSSES) EARNINGS BEFORE INCOME TAXES |
(13,474) |
44,344 |
15,431 |
92,993 |
|
INCOME TAX (BENEFIT) EXPENSE |
(8,132) |
11,369 |
(759) |
23,695 |
|
NET (LOSSES) EARNINGS |
$ (5,342) |
$ 32,975 |
$ 16,190 |
$ 69,298 |
|
(LOSSES) EARNINGS PER SHARE |
$ (0.17) |
$ 0.98 |
$ 0.52 |
$ 2.04 |
|
(LOSSES) EARNINGS PER SHARE ASSUMING DILUTION |
$ (0.17) |
$ 0.95 |
$ 0.51 |
$ 1.99 |
|
WEIGHTED AVERAGE SHARES OUTSTANDING |
30,827 |
33,812 |
30,944 |
34,036 |
|
WEIGHTED AVERAGE SHARES OUTSTANDING ASSUMING |
30,827 |
34,561 |
31,490 |
34,739 |
THE AARON'S COMPANY, INC. CONSOLIDATED BALANCE SHEETS (In thousands) |
|||
(Unaudited) |
|||
June 30, |
December 31, |
||
ASSETS: |
|||
Cash and Cash Equivalents |
$ 28,249 |
$ 22,832 |
|
Accounts Receivable (net of allowances of $7,886 at June 30, 2022 and $7,163 at |
41,020 |
29,443 |
|
Lease Merchandise (net of accumulated depreciation and allowances of $437,803 at |
746,666 |
772,154 |
|
Merchandise Inventories, Net |
106,255 |
— |
|
Property, Plant and Equipment, Net |
263,906 |
230,895 |
|
Operating Lease Right-of-Use Assets |
459,828 |
278,125 |
|
Goodwill |
75,242 |
13,134 |
|
Other Intangibles, Net |
110,258 |
5,095 |
|
Income Tax Receivable |
6,731 |
3,587 |
|
Prepaid Expenses and Other Assets |
93,691 |
86,000 |
|
Total Assets |
$ 1,931,846 |
$ 1,441,265 |
|
LIABILITIES & SHAREHOLDERS' EQUITY: |
|||
Accounts Payable and Accrued Expenses |
$ 236,624 |
$ 244,670 |
|
Deferred Income Taxes Payable |
93,744 |
92,306 |
|
Customer Deposits and Advance Payments |
74,504 |
66,289 |
|
Operating Lease Liabilities |
496,129 |
309,834 |
|
Debt |
310,332 |
10,000 |
|
Total Liabilities |
1,211,333 |
723,099 |
|
Shareholders' Equity: |
|||
Common Stock, Par Value $0.50 Per Share: Authorized: 112,500,000 Shares at |
18,019 |
17,779 |
|
Additional Paid-in Capital |
731,891 |
724,384 |
|
Retained Earnings |
107,611 |
98,546 |
|
Accumulated Other Comprehensive Losses |
(608) |
(739) |
|
856,913 |
839,970 |
||
Less: Treasury Shares at Cost |
|||
5,260,004 Shares at June 30, 2022 and 4,580,390 at December 31, 2021 |
(136,400) |
(121,804) |
|
Total Shareholders' Equity |
720,513 |
718,166 |
|
Total Liabilities & Shareholders' Equity |
$ 1,931,846 |
$ 1,441,265 |
THE AARON'S COMPANY, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||
(Unaudited) |
|||
Six Months Ended June 30, |
|||
(In Thousands) |
2022 |
2021 |
|
OPERATING ACTIVITIES: |
|||
Net Earnings |
$ 16,190 |
$ 69,298 |
|
Adjustments to Reconcile Net Earnings to Cash Provided by Operating Activities: |
|||
Depreciation of Lease Merchandise |
260,507 |
269,600 |
|
Other Depreciation and Amortization |
40,395 |
34,547 |
|
Provision for Lease Merchandise Write-Offs |
44,070 |
25,534 |
|
Non-Cash Inventory Fair Value Adjustment |
23,023 |
— |
|
Accounts Receivable Provision |
17,484 |
10,879 |
|
Stock-Based Compensation |
6,835 |
6,882 |
|
Deferred Income Taxes |
(1,644) |
16,674 |
|
Impairment of Assets |
6,048 |
2,810 |
|
Non-Cash Lease Expense |
53,850 |
45,802 |
|
Other Changes, Net |
(6,349) |
(2,437) |
|
Changes in Operating Assets and Liabilities: |
|||
Lease Merchandise |
(279,949) |
(335,262) |
|
Merchandise Inventories |
(2,480) |
— |
|
Accounts Receivable |
(13,189) |
(3,554) |
|
Prepaid Expenses and Other Assets |
5,829 |
(3,228) |
|
Income Tax Receivable |
(3,144) |
(707) |
|
Operating Lease Right-of-Use Assets and Liabilities |
(59,642) |
(63,169) |
|
Accounts Payable and Accrued Expenses |
(33,909) |
(2,748) |
|
Customer Deposits and Advance Payments |
(16,849) |
(10,766) |
|
Cash Provided by Operating Activities |
57,076 |
60,155 |
|
INVESTING ACTIVITIES: |
|||
Purchases of Property, Plant, and Equipment |
(57,687) |
(45,826) |
|
Proceeds from Dispositions of Property, Plant, and Equipment |
10,191 |
8,340 |
|
Acquisition of BrandsMart U.S.A., Net of Cash Acquired |
(266,772) |
— |
|
Acquisition of Businesses and Customer Agreements, Net of Cash Acquired |
(917) |
(1,734) |
|
Proceeds from Other Investing-Related Activities |
968 |
1,974 |
|
Cash Used in Investing Activities |
(314,217) |
(37,246) |
|
FINANCING ACTIVITIES: |
|||
Repayments on Swing Line Loans, Net |
(10,000) |
— |
|
Proceeds from Revolver and Term Loan |
291,700 |
— |
|
Repayments on Revolver, Term Loan and Financing Leases |
(4,200) |
(753) |
|
Borrowings on Inventory Loan Program, Net |
8,121 |
— |
|
Dividends Paid |
(6,611) |
(6,770) |
|
Acquisition of Treasury Stock |
(11,055) |
(42,626) |
|
Issuance of Stock Under Stock Option Plans |
912 |
1,790 |
|
Shares Withheld for Tax Payments |
(3,541) |
(2,729) |
|
Debt Issuance Costs |
(2,758) |
— |
|
Cash Provided by (Used in) Financing Activities |
262,568 |
(51,088) |
|
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS |
(10) |
35 |
|
Increase (Decrease) in Cash and Cash Equivalents |
5,417 |
(28,144) |
|
Cash and Cash Equivalents at Beginning of Period |
22,832 |
76,123 |
|
Cash and Cash Equivalents at End of Period |
$ 28,249 |
$ 47,979 |
The Aaron's Company, Inc. Quarterly Revenues by Segment (In thousands) |
||||
(Unaudited) |
||||
Three Months Ended |
||||
June 30, 2022 |
||||
Aaron's |
BrandsMart |
Elimination of |
Total |
|
Lease Revenues and Fees |
$ 386,513 |
$ — |
— |
$ 386,513 |
Retail Sales |
10,709 |
181,442 |
(1,303) |
190,848 |
Non-Retail Sales |
27,042 |
— |
— |
27,042 |
Franchise Royalties and Fees |
5,792 |
— |
— |
5,792 |
Other |
189 |
— |
— |
189 |
Total Revenues |
$ 430,245 |
$ 181,442 |
$ (1,303) |
$ 610,384 |
(Unaudited) |
||||
Three Months Ended |
||||
June 30, 2021 |
||||
Aaron's |
BrandsMart |
Elimination of |
Total |
|
Lease Revenues and Fees |
$ 411,621 |
$ — |
— |
$ 411,621 |
Retail Sales |
16,877 |
— |
— |
16,877 |
Non-Retail Sales |
32,455 |
— |
— |
32,455 |
Franchise Royalties and Fees |
6,253 |
— |
— |
6,253 |
Other |
289 |
— |
— |
289 |
Total Revenues |
$ 467,495 |
$ — |
$ — |
$ 467,495 |
The Aaron's Company, Inc. Six Months Revenues by Segment (In thousands) |
||||
(Unaudited) |
||||
Six Months Ended |
||||
June 30, 2022 |
||||
Aaron's |
BrandsMart |
Elimination of |
Total |
|
Lease Revenues and Fees |
$ 795,831 |
$ — |
$ — |
$ 795,831 |
Retail Sales |
23,316 |
181,442 |
(1,303) |
203,455 |
Non-Retail Sales |
54,869 |
— |
— |
54,869 |
Franchise Royalties and Fees |
11,910 |
— |
— |
11,910 |
Other |
401 |
— |
— |
401 |
Total |
$ 886,327 |
$ 181,442 |
$ (1,303) |
$ 1,066,466 |
(Unaudited) |
||||
Six Months Ended |
||||
June 30, 2021 |
||||
Aaron's |
BrandsMart |
Elimination of |
Total |
|
Lease Revenues and Fees |
$ 839,262 |
$ — |
$ — |
$ 839,262 |
Retail Sales |
33,323 |
— |
— |
33,323 |
Non-Retail Sales |
62,404 |
— |
— |
62,404 |
Franchise Royalties and Fees |
12,962 |
— |
— |
12,962 |
Other |
598 |
— |
— |
598 |
Total |
$ 948,549 |
$ — |
$ — |
$ 948,549 |
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 2022 exclude certain charges including amortization expense resulting from acquisitions, restructuring charges, separation costs associated with the separation and distribution transaction that resulted in our spin-off into a separate publicly-traded company, acquisition-related costs, and a one-time, non-cash charge for a fair value adjustment to merchandise inventories. Non-GAAP net earnings and non-GAAP diluted earnings per share for 2021 exclude certain charges including amortization expense resulting from acquisitions, restructuring charges and separation costs associated with the separation and distribution transaction that resulted in our spin-off into a separate publicly-traded company. The amounts for these pre-tax non-GAAP adjustments, which are tax-effected using estimated tax rates which are commensurate with non-GAAP pre-tax earnings, can be found in the Reconciliation of Net (Loss) Earnings and (Loss) Earnings Per Share Assuming Dilution to Non-GAAP Net Earnings and Non-GAAP Earnings Per Share Assuming Dilution table in this press release.
The EBITDA and adjusted EBITDA figures presented in this press release are calculated as the Company's (loss) 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. Adjusted EBITDA margin is defined as EBITDA as a percentage of revenue. The amounts for these pre-tax non-GAAP adjustments can be found in the Quarterly EBITDA table in this press release.
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 per share provide 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 or transactions that have variability and volatility of the amount. This measure may be useful to an investor in evaluating the underlying operating performance of our business.
EBITDA and Adjusted EBITDA also provide 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:
The Free Cash Flow figures presented in this press release and in the press release dated April 25, 2022 are calculated as the Company's cash flows provided by operating activities, adjusted for acquisition-related transaction costs and proceeds from real estate transactions, less capital expenditures. Management believes that Free Cash Flow is an important measure of liquidity provides relevant and useful information, and are widely used by analysts, investors and competitors in our industry as well as by our management in assessing liquidity.
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, the Company's GAAP revenues and earnings before income taxes and GAAP cash from operating activities, 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 and Free Cash Flow 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 (Loss) Earnings and (Loss) Earnings Per Share Assuming Dilution to Non- (In thousands, except per share) |
||||||
(Unaudited) Three Months Ended |
(Unaudited) Six Months Ended |
|||||
June 30, |
June 30, |
|||||
2022 |
2021 |
2022 |
2021 |
|||
Net (Losses) Earnings |
$ (5,342) |
$ 32,975 |
$ 16,190 |
$ 69,298 |
||
Income Taxes |
(8,132) |
11,369 |
(759) |
23,695 |
||
(Losses) Earnings Before Income Taxes |
$ (13,474) |
$ 44,344 |
$ 15,431 |
$ 92,993 |
||
Add: Acquisition-Related Intangible Amortization Expense |
2,782 |
1,428 |
3,423 |
2,935 |
||
Add: Restructuring Expenses, Net |
5,582 |
1,794 |
8,917 |
5,235 |
||
Add: Separation Costs |
230 |
1,246 |
770 |
5,636 |
||
Add: Non-Cash Inventory Fair Value Adjustment |
23,023 |
— |
23,023 |
— |
||
Add: Acquisition-Related Costs |
8,033 |
— |
11,497 |
— |
||
Non-GAAP Earnings Before Income Taxes |
26,176 |
48,812 |
63,061 |
106,799 |
||
Income taxes, calculated using a non-GAAP Effective Tax Rate |
1,388 |
12,515 |
10,796 |
27,213 |
||
Non-GAAP Net Earnings |
$ 24,788 |
$ 36,297 |
$ 52,265 |
$ 79,586 |
||
(Losses) Earnings Per Share Assuming Dilution |
$ (0.17) |
$ 0.95 |
$ 0.51 |
$ 1.99 |
||
Add: Acquisition-Related Intangible Amortization Expense |
0.09 |
0.04 |
0.11 |
0.08 |
||
Add: Restructuring Expenses, Net |
0.18 |
0.05 |
0.28 |
0.15 |
||
Add: Separation Costs |
0.01 |
0.04 |
0.02 |
0.16 |
||
Add: Non-Cash Inventory Fair Value Adjustment |
0.74 |
— |
0.73 |
— |
||
Add: Acquisition-Related Costs |
0.26 |
— |
0.37 |
— |
||
Tax Effect of Non-GAAP adjustments |
(0.30) |
(0.03) |
(0.37) |
(0.10) |
||
Non-GAAP Earnings Per Share Assuming Dilution(1) |
$ 0.79 |
$ 1.05 |
$ 1.66 |
$ 2.29 |
||
Weighted Average Shares Outstanding Assuming Dilution(2) |
31,222 |
34,561 |
31,490 |
34,739 |
(1) |
In some cases, the sum of individual EPS amounts may not equal total non-GAAP EPS calculations due to rounding. |
(2) |
For the three months ended June 30, 2022, the GAAP Weighted Average Shares Outstanding Assuming Dilution was 30,827 and |
The Aaron's Company, Inc. Non-GAAP Financial Information Quarterly EBITDA by Segment (In thousands) |
|||||
(Unaudited) |
|||||
Three Months Ended June 30, 2022 |
|||||
Aaron's |
BrandsMart |
Unallocated |
Elimination |
Total |
|
Net Earnings (Losses) |
$ 29,520 |
$ (15,919) |
$ (18,604) |
$ (339) |
$ (5,342) |
Income Taxes |
— |
— |
(8,132) |
— |
(8,132) |
Earnings (Losses) Before Income Taxes |
$ 29,520 |
$ (15,919) |
$ (26,736) |
$ (339) |
$ (13,474) |
Interest Expense |
— |
— |
2,463 |
— |
2,463 |
Depreciation |
17,814 |
1,189 |
364 |
— |
19,367 |
Amortization |
700 |
2,178 |
— |
— |
2,878 |
EBITDA |
$ 48,034 |
$ (12,552) |
$ (23,909) |
$ (339) |
$ 11,234 |
Separation Costs |
— |
— |
230 |
— |
230 |
Restructuring Expenses, Net |
— |
— |
5,582 |
— |
5,582 |
Acquisition-Related Costs |
— |
— |
8,033 |
— |
8,033 |
Non-Cash Inventory Fair Value Adjustment |
— |
23,023 |
— |
— |
23,023 |
Adjusted EBITDA |
$ 48,034 |
$ 10,471 |
$ (10,064) |
$ (339) |
$ 48,102 |
(Unaudited) |
|||||
Three Months Ended June 30, 2021 |
|||||
Aaron's |
BrandsMart |
Unallocated |
Elimination |
Total |
|
Net Earnings (Losses) |
$ 61,665 |
$ — |
$ (28,690) |
$ — |
$ 32,975 |
Income Taxes |
— |
— |
11,369 |
— |
11,369 |
Earnings (Losses) Before Income Taxes |
$ 61,665 |
$ — |
$ (17,321) |
$ — |
$ 44,344 |
Interest Expense |
— |
— |
451 |
— |
451 |
Depreciation |
15,377 |
— |
504 |
— |
15,881 |
Amortization |
1,599 |
— |
— |
— |
1,599 |
EBITDA |
$ 78,641 |
$ — |
$ (16,366) |
$ — |
$ 62,275 |
Separation Costs |
— |
— |
1,246 |
— |
1,246 |
Restructuring Expenses, Net |
— |
— |
1,794 |
— |
1,794 |
Adjusted EBITDA |
$ 78,641 |
$ — |
$ (13,326) |
$ — |
$ 65,315 |
The Aaron's Company, Inc. Non-GAAP Financial Information Six Months EBITDA by Segment (In thousands) |
|||||
(Unaudited) |
|||||
Six Months Ended June 30, 2022 |
|||||
Aaron's |
BrandsMart |
Unallocated |
Elimination |
Total |
|
Net Earnings (Losses) |
$ 81,681 |
$ (15,919) |
$ (49,233) |
$ (339) |
$ 16,190 |
Income Taxes |
— |
— |
(759) |
— |
(759) |
Earnings (Losses) Before Income Taxes |
$ 81,681 |
$ (15,919) |
$ (49,992) |
$ (339) |
$ 15,431 |
Interest Expense |
— |
— |
2,813 |
— |
2,813 |
Depreciation |
34,802 |
1,189 |
761 |
— |
36,752 |
Amortization |
1,464 |
2,178 |
— |
— |
3,642 |
EBITDA |
$ 117,947 |
$ (12,552) |
$ (46,418) |
$ (339) |
$ 58,638 |
Separation Costs |
— |
— |
770 |
— |
770 |
Restructuring Expenses, Net |
— |
— |
8,917 |
— |
8,917 |
Acquisition-Related Costs |
— |
— |
11,497 |
— |
11,497 |
Non-Cash Inventory Fair Value Adjustment |
— |
23,023 |
— |
— |
23,023 |
Adjusted EBITDA |
$ 117,947 |
$ 10,471 |
$ (25,234) |
$ (339) |
$ 102,845 |
(Unaudited) |
|||||
Six Months Ended June 30, 2021 |
|||||
Aaron's |
BrandsMart |
Unallocated |
Elimination |
Total |
|
Net Earnings (Losses) |
$ 132,918 |
$ — |
$ (63,620) |
$ — |
$ 69,298 |
Income Taxes |
— |
— |
23,695 |
— |
23,695 |
Earnings (Losses) Before Income Taxes |
$ 132,918 |
— |
$ (39,925) |
$ — |
$ 92,993 |
Interest Expense |
— |
— |
795 |
— |
795 |
Depreciation |
30,216 |
— |
1,048 |
— |
31,264 |
Amortization |
3,283 |
— |
— |
— |
3,283 |
EBITDA |
$ 166,417 |
— |
$ (38,082) |
$ — |
$ 128,335 |
Separation Costs |
— |
— |
5,636 |
— |
5,636 |
Restructuring Expenses, Net |
— |
— |
5,235 |
— |
5,235 |
Adjusted EBITDA |
$ 166,417 |
$ — |
$ (27,211) |
$ — |
$ 139,206 |
Reconciliation of 2022 Current Outlook for Adjusted EBITDA (In thousands) |
|||
Fiscal Year 2022 Ranges |
|||
Aaron's Business |
BrandsMart |
Consolidated Total |
|
Estimated Net Earnings |
$10,000 - $24,000 |
||
Income Taxes |
$250 - $750 |
||
Projected Earnings Before Income Taxes |
$105,000 - $118,000 |
($11,000) - ($8,000) |
$10,250 - $24,750 |
Interest Expense |
— |
— |
$10,500 - $11,000 |
Depreciation and Amortization |
$75,000 - $77,000 |
$8,000 - $10,000 |
$85,000 - $90,000 |
Projected EBITDA |
$180,000 - $195,000 |
($3,000) - $2,000 |
$105,750 - $125,750 |
Other Adjustments, Net1 |
— |
$23,000 |
$44,250 |
Projected Adjusted EBITDA |
$180,000 - $195,000 |
$20,000 - $25,000 |
$150,000 - $170,000 |
(1) |
Other Adjustments, Net includes non-GAAP charges related to restructuring charges, separation costs |
Reconciliation of 2022 Current Outlook for Earnings Per Share Assuming Dilution to Non-GAAP Earnings Per Share Assuming Dilution |
||
Fiscal Year 2022 Range |
||
Low |
High |
|
Projected Earnings Per Share Assuming Dilution |
$ 0.30 |
$ 0.80 |
Add Sum of Other Adjustments1 |
1.45 |
1.35 |
Projected Non-GAAP Earnings Per Share Assuming Dilution |
$ 1.75 |
$ 2.15 |
(1) |
Includes the non-GAAP charges related to restructuring charges, separation costs associated with the |
Reconciliation of 2022 Current Outlook for Free Cash Flow (In thousands) |
|
Fiscal Year 2022 Ranges |
|
Consolidated Total |
|
Cash Provided by Operating Activities |
$126,500 - $154,500 |
Add: Proceeds from Real Estate Transactions |
$12,000 - $14,000 |
Add: Acquisition-Related Transaction Costs |
$11,500 |
Less: Capital Expenditures |
($100,000 - $120,000) |
Free Cash Flow |
$50,000 - $60,000 |
Reconciliation of 2022 Previous Outlook for Adjusted EBITDA (In thousands) |
||||
Fiscal Year 2022 Ranges |
||||
Aaron's Business |
BrandsMart1 |
Consolidated Total2 |
||
Estimated Net Earnings |
$75,000 - $81,000 |
|||
Income Taxes |
26,000 - 28,000 |
|||
Projected Earnings Before Income Taxes |
N/A |
$13,500 - $16,500 |
$101,000 - $109,000 |
|
Interest Expense |
N/A |
— |
9,000 - 10,000 |
|
Depreciation and Amortization |
N/A |
4,000 - 5,000 |
80,000 - 85,000 |
|
Projected EBITDA |
N/A |
$17,500 - $21,500 |
$190,000 - $204,000 |
|
Projected Other Adjustments, Net |
N/A |
2,500 - 3,500 |
10,000 - 11,000 |
|
Projected Adjusted EBITDA |
N/A |
$20,000 - $25,000 |
$200,000 - $215,000 |
(1) |
Amortization related to the acquired BrandsMart intangible assets was excluded from the Previous |
(2) |
Projected Other Adjustments, Net includes the non-GAAP charges related to restructuring charges, |
Reconciliation of 2022 Previous Outlook for Earnings Per Share Assuming Dilution to Non-GAAP Earnings Per Share Assuming Dilution |
||
Fiscal Year 2022 Range |
||
Low |
High |
|
Projected Earnings Per Share Assuming Dilution |
$ 2.39 |
$ 2.57 |
Add Sum of Projected Other Adjustments1 |
0.26 |
0.33 |
Projected Non-GAAP Earnings Per Share Assuming Dilution |
$ 2.65 |
$ 2.90 |
(1) |
Includes the non-GAAP charges related to restructuring charges, separation costs associated with the |
Reconciliation of 2022 Previous Outlook for Free Cash Flow (In thousands) |
|
Fiscal Year 2022 Ranges |
|
Consolidated Total |
|
Cash Provided by Operating Activities |
$139,000 - $173,000 |
Add: Proceeds from Real Estate Transactions |
6,000 - 7,000 |
Less: Capital Expenditures |
(100,000 - 125,000) |
Free Cash Flow |
$45,000 - $55,000 |
SOURCE The Aaron's Company, Inc.
АТЛАНТА, 25 июля 2022 г. /PRNewswire/ -- The Aaron's Company, Inc. (NYSE: AAN), ведущий высокотехнологичный многоканальный поставщик решений для аренды и розничной покупки, сегодня объявила финансовые результаты за второй квартал, закончившийся 30 июня 2022 года. Этот квартал является первым консолидированным отчетом Компании, включающим результаты BrandsMart U.S.A., приобретенного 1 апреля 2022 года.
"С приобретением BrandsMart U.S.A. консолидированная выручка увеличилась во втором квартале, и мы воодушевлены результатами этого нового бизнес-сегмента", - сказал Дуглас Линдсей, главный исполнительный директор The Aaron's Company, Inc. "В бизнесе компании потребительский спрос и платежная активность постепенно ухудшались в течение квартала, поскольку высокая инфляция повлияла на потребителей с низким доходом. В ответ на эти сложные рыночные условия мы используем наши централизованные платформы принятия решений об аренде и цифрового обслуживания для поддержания отношений с нашими клиентами и усиления мер по контролю затрат".
"Мы продолжаем стратегически инвестировать в наш растущий канал электронной коммерции, нашу высокоэффективную программу магазинов GenNext и возможности создания стоимости, доступные благодаря приобретению BrandsMart", - добавила Линдси. "Вместе с нашим сильным балансом и ликвидностью мы считаем, что эти инвестиции позволят нам продолжать предоставлять лидирующее на рынке ценностное предложение для большой и все более диверсифицированной клиентской базы, что позволит расширить нашу долю на рынке и позиционировать нас для будущего роста".
Основные финансовые показатели Второго квартала 2022 года
The Aaron's Company, Inc. ("Компания") осуществляет свою деятельность через два основных операционных бизнес-сегмента: 1) Бизнес-сегмент Aaron's, который включает в себя магазины Aaron's, управляемые Компанией, Aarons.com платформа электронной коммерции, франчайзинговые операции Aaron's, лизинг BrandsMart, договор аренды с- собственное решение, предлагаемое клиентам BrandsMart U.S.A. и Woodhaven, предприятия по производству мебели (совместно именуемого "Бизнес Аарона"); и 2) сегмент BrandsMart, который включает розничные магазины BrandsMart U.S.A. и Brandsmartusa.com платформа электронной коммерции (совместно именуемая "BrandsMart"). Финансовые и операционные результаты сегмента BrandsMart не включают лизинг BrandsMart, и ни один из результатов бизнес-сегмента не включает нераспределенные корпоративные расходы. Кроме того, финансовые и операционные результаты Компании за второй квартал 2022 года включают результаты деятельности BrandsMart после приобретения 1 апреля 2022 года, в то время как финансовые и операционные результаты за все периоды до приобретения 1 апреля 2022 года не включают BrandsMart. Для всех представленных периодов Компания ретроактивно скорректировала раскрытие информации, чтобы привести ее в соответствие с новыми отчетными сегментами.
Консолидированные результаты
Общая выручка компании составила $610,4 млн во втором квартале 2022 года по сравнению с $467,5 млн во втором квартале 2021 года. Чистые убытки составили $5,3 млн за второй квартал 2022 года по сравнению с чистой прибылью в размере $33,0 млн за аналогичный период предыдущего года. Чистые убытки за второй квартал 2022 года включают последствия единовременных неденежных расходов на корректировку справедливой стоимости товарных запасов в размере 23,0 млн долларов США, расходы, связанные с приобретением BrandsMart, в размере 8,0 млн долларов США, расходы на реструктуризацию в размере 5,6 млн долларов США, расходы на амортизацию нематериальных активов, связанные с приобретением, в размере 2,8 млн долларов США миллионов долларов и расходы на разделение в размере 0,2 миллиона долларов. Эти расходы были частично компенсированы чистой налоговой выгодой в размере 4,8 млн долларов США, связанной с переоценкой остатков отложенного государственного налога Компании в связи с приобретением BrandsMart. Чистая прибыль во втором квартале 2021 года включала расходы на реструктуризацию в размере 1,8 миллиона долларов и расходы на разделение в размере 1,2 миллиона долларов.
Скорректированный показатель EBITDA во втором квартале 2022 года составил 48,1 млн долларов, что на 26,4% меньше, чем во втором квартале 2021 года. В процентах от общей консолидированной выручки скорректированная EBITDA составила 7,9% во втором квартале 2022 года по сравнению с 14,0% во втором квартале предыдущего года. Снижение скорректированной EBITDA и скорректированной рентабельности по EBITDA было в основном обусловлено снижением ставок продления аренды, увеличением резерва на списание арендованных товаров и увеличением прочих операционных расходов, частично компенсируемых снижением расходов на персонал в бизнесе Аарона. Снижение скорректированной EBITDA также было компенсировано скорректированной EBITDA на сумму 10,5 млн долларов, полученной в результате приобретения BrandsMart.
Разводненный убыток на акцию составил $0,17 во втором квартале 2022 года по сравнению с разводненной прибылью на акцию в размере $0,95 во втором квартале 2021 года. На основе без учета GAAP разводненная прибыль на акцию составила $0,79 во втором квартале 2022 года по сравнению с $1,05 во втором квартале 2021 года.
Результаты бизнес-сегмента Аарона
Общая выручка бизнеса Аарона во втором квартале 2022 года составила $430,2 млн, что на 8,0% меньше по сравнению со вторым кварталом 2021 года, в основном из-за снижения доходов от аренды и розничных продаж. Снижение доходов от аренды было в основном связано с более низкими ставками продления аренды и меньшим использованием опционов на досрочную покупку. На конец второго квартала 2022 года наш общий размер лизингового портфеля составил 130,8 млн долларов, что на 1,5% меньше, чем на конец второго квартала 2021 года. Коэффициент продления аренды во втором квартале 2022 года составил 88,5% по сравнению с 92,4% во втором квартале 2021 года, когда правительство стимулировало его. Доходы от электронной коммерции выросли на 4,0% во втором квартале 2022 года по сравнению с аналогичным периодом 2021 года и составили 15,4% доходов от аренды. В течение квартала бизнес Aaron's открыл 36 магазинов GenNext, в результате чего общее количество магазинов GenNext составило 171, или 16,1% от общего числа магазинов Aaron's, управляемых компанией. Количество договоров аренды в магазинах GenNext, открытых менее одного года, продолжало расти более чем на 20 процентных пунктов выше, чем в наших обычных магазинах.
Выручка того же магазина снизилась на 6,7% по сравнению со вторым кварталом 2021 года. Снижение было в первую очередь обусловлено более низким уровнем продления аренды, меньшим использованием опционов на раннюю покупку и сокращением розничных продаж. Эти факторы были частично компенсированы увеличением среднего размера портфеля аренды в том же магазине в течение квартала.
Что касается бизнеса Аарона, то прибыль до вычета налогов на прибыль за второй квартал 2022 года составила 29,5 миллиона долларов по сравнению с 61,7 миллионами долларов во втором квартале 2021 года.
Скорректированная EBITDA бизнеса Aaron во втором квартале 2022 года составила 48,0 млн долларов, что на 38,9% меньше, чем во втором квартале 2021 года. В процентах от общей выручки бизнеса Aaron скорректированная EBITDA составила 11,2% во втором квартале 2022 года по сравнению с 16,8% во втором квартале предыдущего года. Снижение скорректированной EBITDA и скорректированной рентабельности по EBITDA для бизнеса Aaron было в основном связано с более низкими ставками продления аренды и более высокими резервами на списание арендованных товаров по сравнению с уровнями государственного стимулирования во втором квартале 2021 года. Списание арендованных товаров составило 5,7% во втором квартале 2022 года по сравнению с 2,9% во втором квартале 2021 года. На скорректированную EBITDA также повлиял рост прочих операционных расходов, компенсированный снижением расходов на персонал.
Результаты сегмента BrandsMart За Второй квартал
Консолидированные финансовые и операционные результаты Компании за все периоды до приобретения 1 апреля 2022 года не включают BrandsMart и, следовательно, не рассматривались в обсуждении ниже.
Общая выручка BrandsMart во втором квартале 2022 года составила 181,4 миллиона долларов. Убытки до вычета налогов на прибыль за второй квартал 2022 года составили 15,9 миллиона долларов. Убытки до вычета налогов на прибыль во втором квартале 2022 года включают единовременные неденежные расходы в размере 23,0 млн. долл. США, связанные с корректировкой справедливой стоимости приобретенных товарных запасов.
Скорректированная EBITDA во втором квартале составила 10,5 млн долларов, а в процентах от общей выручки сегмента BrandsMart скорректированная EBITDA составила 5,8%.
Программа обратного выкупа акций во втором квартале и Дивидендная активность
Во втором квартале 2022 года Компания выкупила 254 216 обыкновенных акций Aaron's на общую сумму около 5,3 миллиона долларов. Общее количество акций, находящихся в обращении по состоянию на 30 июня 2022 года, составило 30 777 065 по сравнению с 33 093 668 по состоянию на 30 июня 2021 года. Оставшаяся разрешенная сумма выкупа акций составила $135,8 млн по состоянию на 30 июня 2022 года. Кроме того, Правление объявило ежеквартальный денежный дивиденд в размере 0,1125 доллара на акцию, который был выплачен акционерам record 5 июля 2022 года.
Обновленный Прогноз на Весь 2022 год
Компания обновила свой прогноз на весь 2022 год, чтобы отразить ожидания того, что сохраняющаяся высокая инфляция и связанные с ней макроэкономические факторы окажут негативное влияние на потребительский спрос, размер лизингового портфеля, ставки продления лизинга, резервы на списание лизинговых товаров и расходы Компании. В настоящее время мы ожидаем, что консолидированная общая выручка за весь 2022 год составит от 2,19 млрд до 2,27 млрд долларов, скорректированная EBITDA - от 150,0 млн до 170,0 млн долларов, а прибыль на акцию без учета GAAP - от 1,75 до 2,15 долл.
Компания предполагает, что износ и амортизация составят от 85,0 млн до 90,0 млн долларов США, а разводненное средневзвешенное количество акций составит примерно 31,5 млн акций.
Current Outlook1, 2,3 |
Previous Outlook1, 2 |
||||
Low |
High |
Low |
High |
||
Consolidated Company |
|||||
Total Revenues |
$2.19 billion |
$2.27 billion |
$2.32 billion |
$2.39 billion |
|
Adjusted EBITDA |
$150.0 million |
$170.0 million |
$200.0 million |
$215.0 million |
|
Non-GAAP EPS |
$1.75 |
$2.15 |
$2.65 |
$2.90 |
|
Capital Expenditures |
$100.0 million |
$120.0 million |
$100.0 million |
$125.0 million |
|
Free Cash Flow |
$50.0 million |
$60.0 million |
$45.0 million |
$55.0 million |
|
Aaron's Business |
|||||
Total Revenues |
$1.65 billion |
$1.71 billion |
N/A |
N/A |
|
Adjusted EBITDA |
$180.0 million |
$195.0 million |
N/A |
N/A |
|
Annual Same Store Revenues |
-8.0 % |
-6.0 % |
N/A |
N/A |
|
BrandsMart |
|||||
Total Revenues |
$545.0 million |
$565.0 million |
$545.0 million |
$565.0 million |
|
Adjusted EBITDA |
$20.0 million |
$25.0 million |
$20.0 million |
$25.0 million |
1 |
See the "Use of Non-GAAP Financial Information" section accompanying the press release. |
2 |
BrandsMart outlook represents expected results for the nine months ended December 31, |
3 |
The current outlook for the Aaron's Business and BrandsMart segments does not include |
Конференц-связь и веб-трансляция
Компания проведет телефонную конференцию для обсуждения своих квартальных результатов 26 июля 2022 года в 8:30 утра по восточному времени. Общественности предлагается прослушать конференц-звонок посредством веб-трансляции, доступной через веб-сайт Компании по связям с инвесторами, investor.aarons.com .
О Компании Aaron's Company Inc.
Компания Aaron's Company, Inc. со штаб-квартирой в Атланте (NYSE: AAN) является ведущим, технологичным, многоканальным поставщиком решений для аренды и розничной покупки бытовой техники, электроники, мебели и других товаров для дома под своими брендами: Aaron's, BrandsMart U.S.A., BrandsMart Лизинг и Вудхейвен. Aaron's предлагает решение "аренда в собственность" напрямую потребителю через свои примерно 1300 фирменных и франчайзинговых магазинов в 47 штатах и Канаде, а также свою платформу электронной коммерции. BrandsMart U.S.A. - один из ведущих ритейлеров бытовой техники в стране с десятью розничными магазинами во Флориде и Джорджии. BrandsMart Leasing предлагает клиентам BrandsMart U.S.A. Woodhaven - наше подразделение по производству мебели, предлагающее решения "в аренду". Для получения дополнительной информации посетите investor.aarons.com , aarons.com , и brandsmartusa.com .
Прогнозные заявления
Заявления в этом пресс-релизе относительно нашего бизнеса, которые не являются историческими фактами, являются "прогнозными заявлениями", которые связаны с рисками и неопределенностями, которые могут привести к тому, что фактические результаты будут существенно отличаться от тех, которые содержатся в прогнозных заявлениях. Такие прогнозные заявления обычно можно идентифицировать с помощью прогнозной терминологии, такой как "оставаться", "верить", "прогнозировать", "ожидать", "предполагать", "предполагать" и аналогичной терминологии. Эти риски и неопределенности включают такие факторы, как (я) факторы, влияющие на потребительские расходы, в том числе текущей инфляции и общих макроэкономических условий; (II) любое продолжительное влияние COVID-19 пандемией. из-за новых вариантов или эффективность и скорость прививки, а также соответствующие меры, принимаемые государственными и контролирующими органами по борьбе с пандемией (III) возможность того, что оперативная, ожидается, что стратегический акционер и возможностей создания стоимости, от разделения и спин-офф Аарона бизнес в компании Аарона, Инк. не может быть достигнуто своевременно, или на всех; (IV) провал, что разлука для получения ожидаемого налогового режима; (в) риск того, что компания может не реализовать ожидаемые выгоды от приобретения BrandsMart США, в том числе прогнозируемого взаимодействия; (ви) риски, связанные со срывом тайм-менеджмент от текущих бизнес-операциях в связи с приобретением; (VII) и неспособность своевременно и эффективно интегрировать BrandsMart США закупок; (VIII вида) влияние приобретения на наши операционные результаты и предприятий, и от способности Аарона и BrandsMart удерживать и нанимать ключевых сотрудников или поддерживать отношения с поставщиками; (іх) изменения в органах и толкование существующих законов и постановлений и принятием новых законов и правил, которые могут неблагоприятно влияют на деятельность предприятия; (х) нормативно-правовые и разбирательств и расследований, в том числе связанные с защитой прав потребителей законы и постановления, конфиденциальность клиента, третьих лиц и сотрудников, а также информационной безопасности; (Си) риски, связанные с нашей стратегии и стратегических приоритетах, а не быть успешным, в том числе НАШ ИНТЕРНЕТ-МАГАЗИН и недвижимого имущества перестановки и оптимизации инициатив или будет более дорогостоящим, чем предполагалось; (XII в) риски, связанные с проблемами, с которыми сталкивается наш бизнес, в том числе по коммерциализации потребительской электроники, наш высокий уровень постоянных затрат операционной модели и продолжающаяся нехватка рабочей силы; (XIII в) усиление конкуренции со стороны традиционных и виртуальных аренды с выкупом конкурентов, а также от традиционных и интернет-магазинов и других конкурентов; (XIV век) финансовые трудности, с которыми сталкиваются наши франчайзи; (XV в) увеличивается в аренду товар, списания и потенциал общества продолжительности и последствий правительственных стимулов и других государственных платежей, осуществляемых федеральным правительством и правительствами штатов для противодействия экономическим последствиям пандемии; (XVI в.) наличие и цены поставок ресурсов, в том числе и транспортировки продукции; (XVII в.) нарушения дела в связи с политической или экономической нестабильностью из-за продолжающегося конфликта между Россией и Украиной; и (XVIII в.) другие риски и неопределенности, обсуждаются в разделе "Факторы риска" в годовом отчете компании по форме 10-K за финансовый год, закончившийся 31 декабря 2021 года. Заявления в этом пресс-релизе, которые являются "прогнозными", включают, помимо прочего, заявления о: (i) выполнении наших ключевых стратегических приоритетов; (ii) росте и других выгодах, которые мы ожидаем от выполнения этих приоритетов; (iii) наших прогнозах финансовых показателей на 2022 год; (iv) целях Компании, планы, ожидания и прогнозы относительно ожидаемых выгод от приобретения BrandsMart; и (v) ожидаемое влияние на наши финансовые показатели в 2022 году дополнительных раундов государственных стимулирующих выплат. Мы предостерегаем вас от чрезмерного доверия к этим прогнозным заявлениям, которые действуют только на дату настоящего пресс-релиза. За исключением случаев, предусмотренных законом, Компания не берет на себя никаких обязательств по обновлению этих прогнозных заявлений для отражения последующих событий или обстоятельств после даты настоящего пресс-релиза.
THE AARON'S COMPANY, INC. Consolidated Statements of Earnings (In thousands, except per share amounts) |
|||||
(Unaudited) Three Months Ended |
(Unaudited) Six Months Ended |
||||
June 30, |
June 30, |
||||
2022 |
2021 |
2022 |
2021 |
||
REVENUES: |
|||||
Lease Revenues and Fees |
$ 386,513 |
$ 411,621 |
$ 795,831 |
$ 839,262 |
|
Retail Sales |
190,848 |
16,877 |
203,455 |
33,323 |
|
Non-Retail Sales |
27,042 |
32,455 |
54,869 |
62,404 |
|
Franchise Royalties and Other Revenues |
5,981 |
6,542 |
12,311 |
13,560 |
|
610,384 |
467,495 |
1,066,466 |
948,549 |
||
COST OF REVENUES: |
|||||
Depreciation of Lease Merchandise and Other Lease Revenue |
127,772 |
132,319 |
264,436 |
273,296 |
|
Retail Cost of Sales |
165,228 |
10,887 |
174,343 |
21,405 |
|
Non-Retail Cost of Sales |
24,237 |
29,609 |
49,593 |
56,100 |
|
317,237 |
172,815 |
488,372 |
350,801 |
||
GROSS PROFIT |
293,147 |
294,680 |
578,094 |
597,748 |
|
OPERATING EXPENSES: |
|||||
Personnel Costs |
130,257 |
121,426 |
251,367 |
246,289 |
|
Other Operating Expenses, Net |
136,387 |
114,046 |
240,746 |
222,412 |
|
Provision for Lease Merchandise Write-Offs |
22,113 |
12,117 |
44,070 |
25,534 |
|
Restructuring Expenses, Net |
5,582 |
1,794 |
8,917 |
5,235 |
|
Separation Costs |
230 |
1,246 |
770 |
5,636 |
|
Acquisition-Related Costs |
8,033 |
— |
11,497 |
— |
|
302,602 |
250,629 |
557,367 |
505,106 |
||
OPERATING (LOSSES) PROFIT |
(9,455) |
44,051 |
20,727 |
92,642 |
|
Interest Expense |
(2,463) |
(451) |
(2,813) |
(795) |
|
Other Non-Operating (Expense) Income, Net |
(1,556) |
744 |
(2,483) |
1,146 |
|
(LOSSES) EARNINGS BEFORE INCOME TAXES |
(13,474) |
44,344 |
15,431 |
92,993 |
|
INCOME TAX (BENEFIT) EXPENSE |
(8,132) |
11,369 |
(759) |
23,695 |
|
NET (LOSSES) EARNINGS |
$ (5,342) |
$ 32,975 |
$ 16,190 |
$ 69,298 |
|
(LOSSES) EARNINGS PER SHARE |
$ (0.17) |
$ 0.98 |
$ 0.52 |
$ 2.04 |
|
(LOSSES) EARNINGS PER SHARE ASSUMING DILUTION |
$ (0.17) |
$ 0.95 |
$ 0.51 |
$ 1.99 |
|
WEIGHTED AVERAGE SHARES OUTSTANDING |
30,827 |
33,812 |
30,944 |
34,036 |
|
WEIGHTED AVERAGE SHARES OUTSTANDING ASSUMING |
30,827 |
34,561 |
31,490 |
34,739 |
THE AARON'S COMPANY, INC. CONSOLIDATED BALANCE SHEETS (In thousands) |
|||
(Unaudited) |
|||
June 30, |
December 31, |
||
ASSETS: |
|||
Cash and Cash Equivalents |
$ 28,249 |
$ 22,832 |
|
Accounts Receivable (net of allowances of $7,886 at June 30, 2022 and $7,163 at |
41,020 |
29,443 |
|
Lease Merchandise (net of accumulated depreciation and allowances of $437,803 at |
746,666 |
772,154 |
|
Merchandise Inventories, Net |
106,255 |
— |
|
Property, Plant and Equipment, Net |
263,906 |
230,895 |
|
Operating Lease Right-of-Use Assets |
459,828 |
278,125 |
|
Goodwill |
75,242 |
13,134 |
|
Other Intangibles, Net |
110,258 |
5,095 |
|
Income Tax Receivable |
6,731 |
3,587 |
|
Prepaid Expenses and Other Assets |
93,691 |
86,000 |
|
Total Assets |
$ 1,931,846 |
$ 1,441,265 |
|
LIABILITIES & SHAREHOLDERS' EQUITY: |
|||
Accounts Payable and Accrued Expenses |
$ 236,624 |
$ 244,670 |
|
Deferred Income Taxes Payable |
93,744 |
92,306 |
|
Customer Deposits and Advance Payments |
74,504 |
66,289 |
|
Operating Lease Liabilities |
496,129 |
309,834 |
|
Debt |
310,332 |
10,000 |
|
Total Liabilities |
1,211,333 |
723,099 |
|
Shareholders' Equity: |
|||
Common Stock, Par Value $0.50 Per Share: Authorized: 112,500,000 Shares at |
18,019 |
17,779 |
|
Additional Paid-in Capital |
731,891 |
724,384 |
|
Retained Earnings |
107,611 |
98,546 |
|
Accumulated Other Comprehensive Losses |
(608) |
(739) |
|
856,913 |
839,970 |
||
Less: Treasury Shares at Cost |
|||
5,260,004 Shares at June 30, 2022 and 4,580,390 at December 31, 2021 |
(136,400) |
(121,804) |
|
Total Shareholders' Equity |
720,513 |
718,166 |
|
Total Liabilities & Shareholders' Equity |
$ 1,931,846 |
$ 1,441,265 |
THE AARON'S COMPANY, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||
(Unaudited) |
|||
Six Months Ended June 30, |
|||
(In Thousands) |
2022 |
2021 |
|
OPERATING ACTIVITIES: |
|||
Net Earnings |
$ 16,190 |
$ 69,298 |
|
Adjustments to Reconcile Net Earnings to Cash Provided by Operating Activities: |
|||
Depreciation of Lease Merchandise |
260,507 |
269,600 |
|
Other Depreciation and Amortization |
40,395 |
34,547 |
|
Provision for Lease Merchandise Write-Offs |
44,070 |
25,534 |
|
Non-Cash Inventory Fair Value Adjustment |
23,023 |
— |
|
Accounts Receivable Provision |
17,484 |
10,879 |
|
Stock-Based Compensation |
6,835 |
6,882 |
|
Deferred Income Taxes |
(1,644) |
16,674 |
|
Impairment of Assets |
6,048 |
2,810 |
|
Non-Cash Lease Expense |
53,850 |
45,802 |
|
Other Changes, Net |
(6,349) |
(2,437) |
|
Changes in Operating Assets and Liabilities: |
|||
Lease Merchandise |
(279,949) |
(335,262) |
|
Merchandise Inventories |
(2,480) |
— |
|
Accounts Receivable |
(13,189) |
(3,554) |
|
Prepaid Expenses and Other Assets |
5,829 |
(3,228) |
|
Income Tax Receivable |
(3,144) |
(707) |
|
Operating Lease Right-of-Use Assets and Liabilities |
(59,642) |
(63,169) |
|
Accounts Payable and Accrued Expenses |
(33,909) |
(2,748) |
|
Customer Deposits and Advance Payments |
(16,849) |
(10,766) |
|
Cash Provided by Operating Activities |
57,076 |
60,155 |
|
INVESTING ACTIVITIES: |
|||
Purchases of Property, Plant, and Equipment |
(57,687) |
(45,826) |
|
Proceeds from Dispositions of Property, Plant, and Equipment |
10,191 |
8,340 |
|
Acquisition of BrandsMart U.S.A., Net of Cash Acquired |
(266,772) |
— |
|
Acquisition of Businesses and Customer Agreements, Net of Cash Acquired |
(917) |
(1,734) |
|
Proceeds from Other Investing-Related Activities |
968 |
1,974 |
|
Cash Used in Investing Activities |
(314,217) |
(37,246) |
|
FINANCING ACTIVITIES: |
|||
Repayments on Swing Line Loans, Net |
(10,000) |
— |
|
Proceeds from Revolver and Term Loan |
291,700 |
— |
|
Repayments on Revolver, Term Loan and Financing Leases |
(4,200) |
(753) |
|
Borrowings on Inventory Loan Program, Net |
8,121 |
— |
|
Dividends Paid |
(6,611) |
(6,770) |
|
Acquisition of Treasury Stock |
(11,055) |
(42,626) |
|
Issuance of Stock Under Stock Option Plans |
912 |
1,790 |
|
Shares Withheld for Tax Payments |
(3,541) |
(2,729) |
|
Debt Issuance Costs |
(2,758) |
— |
|
Cash Provided by (Used in) Financing Activities |
262,568 |
(51,088) |
|
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS |
(10) |
35 |
|
Increase (Decrease) in Cash and Cash Equivalents |
5,417 |
(28,144) |
|
Cash and Cash Equivalents at Beginning of Period |
22,832 |
76,123 |
|
Cash and Cash Equivalents at End of Period |
$ 28,249 |
$ 47,979 |
The Aaron's Company, Inc. Quarterly Revenues by Segment (In thousands) |
||||
(Unaudited) |
||||
Three Months Ended |
||||
June 30, 2022 |
||||
Aaron's |
BrandsMart |
Elimination of |
Total |
|
Lease Revenues and Fees |
$ 386,513 |
$ — |
— |
$ 386,513 |
Retail Sales |
10,709 |
181,442 |
(1,303) |
190,848 |
Non-Retail Sales |
27,042 |
— |
— |
27,042 |
Franchise Royalties and Fees |
5,792 |
— |
— |
5,792 |
Other |
189 |
— |
— |
189 |
Total Revenues |
$ 430,245 |
$ 181,442 |
$ (1,303) |
$ 610,384 |
(Unaudited) |
||||
Three Months Ended |
||||
June 30, 2021 |
||||
Aaron's |
BrandsMart |
Elimination of |
Total |
|
Lease Revenues and Fees |
$ 411,621 |
$ — |
— |
$ 411,621 |
Retail Sales |
16,877 |
— |
— |
16,877 |
Non-Retail Sales |
32,455 |
— |
— |
32,455 |
Franchise Royalties and Fees |
6,253 |
— |
— |
6,253 |
Other |
289 |
— |
— |
289 |
Total Revenues |
$ 467,495 |
$ — |
$ — |
$ 467,495 |
The Aaron's Company, Inc. Six Months Revenues by Segment (In thousands) |
||||
(Unaudited) |
||||
Six Months Ended |
||||
June 30, 2022 |
||||
Aaron's |
BrandsMart |
Elimination of |
Total |
|
Lease Revenues and Fees |
$ 795,831 |
$ — |
$ — |
$ 795,831 |
Retail Sales |
23,316 |
181,442 |
(1,303) |
203,455 |
Non-Retail Sales |
54,869 |
— |
— |
54,869 |
Franchise Royalties and Fees |
11,910 |
— |
— |
11,910 |
Other |
401 |
— |
— |
401 |
Total |
$ 886,327 |
$ 181,442 |
$ (1,303) |
$ 1,066,466 |
(Unaudited) |
||||
Six Months Ended |
||||
June 30, 2021 |
||||
Aaron's |
BrandsMart |
Elimination of |
Total |
|
Lease Revenues and Fees |
$ 839,262 |
$ — |
$ — |
$ 839,262 |
Retail Sales |
33,323 |
— |
— |
33,323 |
Non-Retail Sales |
62,404 |
— |
— |
62,404 |
Franchise Royalties and Fees |
12,962 |
— |
— |
12,962 |
Other |
598 |
— |
— |
598 |
Total |
$ 948,549 |
$ — |
$ — |
$ 948,549 |
Использование финансовой информации, не относящейся к ОПБУ:
Чистая прибыль без учета GAAP, разводненная прибыль на акцию без учета GAAP, EBITDA и скорректированная EBITDA являются дополнительными показателями нашей деятельности, которые не рассчитываются в соответствии с общепринятыми принципами бухгалтерского учета в Соединенных Штатах ("GAAP"). Чистая прибыль без учета GAAP и разводненная прибыль на акцию без учета GAAP за 2022 год исключают определенные расходы, включая расходы на амортизацию в результате приобретений, расходы на реструктуризацию, расходы на разделение, связанные с разделением и распределением, которые привели к выделению нашей компании в отдельную публичную компанию, расходы, связанные с приобретением, и один- временная безналичная плата за корректировку справедливой стоимости товарных запасов. Чистая прибыль без учета GAAP и разводненная прибыль на акцию без учета GAAP за 2021 год исключают определенные расходы, включая расходы на амортизацию, связанные с приобретениями, расходы на реструктуризацию и расходы на разделение, связанные со сделкой по разделению и распределению, в результате которой мы выделились в отдельную публичную компанию. Суммы для этих корректировок до налогообложения, не относящихся к GAAP, которые облагаются налогом с использованием расчетных налоговых ставок, которые соизмеримы с доходом до налогообложения, не относящимся к GAAP, можно найти в Сверке Чистой (Убыточной) Прибыли и (Убытка) Прибыли на акцию с учетом разводнения до Чистой прибыли, не относящейся к GAAP. и Прибыль на акцию без учета GAAP С учетом таблицы разводнения в этом пресс-релизе.
Показатели EBITDA и скорректированной EBITDA, представленные в данном пресс-релизе, рассчитаны как прибыль (убыток) Компании до вычета процентных расходов, износа основных средств, амортизации нематериальных активов и налогов на прибыль. Скорректированный показатель EBITDA также исключает другие корректировки, описанные выше при расчете чистой прибыли, не связанной с ОПБУ. Скорректированная рентабельность по EBITDA определяется как показатель EBITDA в процентах от выручки. Суммы для этих корректировок до налогообложения, не связанных с GAAP, можно найти в квартальной таблице EBITDA в этом пресс-релизе.
Руководство считает, что чистая прибыль без учета GAAP, разводненная прибыль на акцию без учета GAAP, EBITDA и скорректированная EBITDA предоставляют актуальную и полезную информацию и широко используются аналитиками, инвесторами и конкурентами в нашей отрасли, а также нашим руководством при оценке как консолидированных показателей, так и показателей бизнес-единиц.
Чистая прибыль, не соответствующая ОПБУ, и разводненная прибыль на акцию, не соответствующая ОПБУ, дают руководству и инвесторам представление о результатах основных операций нашего бизнеса, исключая влияние определенных статей, которые обычно возникают в результате крупных разовых операций, которые не отражают обычную прибыль от нашей деятельности или транзакции, которые имеют изменчивость и волатильность суммы. Эта мера может быть полезна инвестору при оценке основных операционных показателей нашего бизнеса.
Показатель EBITDA и скорректированный показатель EBITDA также дают руководству и инвесторам представление об одном аспекте прибыли до учета влияния расходов на инвестиции и финансирование и налогов на прибыль. Эти показатели могут быть полезны инвестору при оценке наших операционных показателей и ликвидности, поскольку эти показатели:
Показатели свободного денежного потока, представленные в настоящем пресс-релизе и в пресс-релизе от 25 апреля 2022 года, рассчитаны как денежные потоки Компании, обеспеченные операционной деятельностью, скорректированные на транзакционные издержки, связанные с приобретением, и доходы от операций с недвижимостью, за вычетом капитальных затрат. Руководство считает, что свободный денежный поток является важным показателем ликвидности, предоставляет актуальную и полезную информацию и широко используется аналитиками, инвесторами и конкурентами в нашей отрасли, а также нашим руководством при оценке ликвидности.
Однако финансовые показатели, не относящиеся к GAAP, не должны использоваться в качестве замены или рассматриваться как превосходящие показатели финансовых показателей, подготовленных в соответствии с GAAP, такие как чистая прибыль Компании на основе GAAP и разводненная прибыль на акцию, доходы и прибыль Компании по GAAP до налогообложения и денежные средства по GAAP. от операционной деятельности, которые также представлены в пресс-релизе. Кроме того, мы предупреждаем инвесторов, что суммы, представленные в соответствии с нашими определениями чистой прибыли без учета GAAP, разводненной прибыли на акцию без учета GAAP, EBITDA, скорректированной EBITDA и Свободного денежного потока, могут быть несопоставимы с аналогичными показателями, раскрытыми другими компаниями, поскольку не все компании и аналитики рассчитывают эти показатели одинаково. манеры.
Reconciliation of Net (Loss) Earnings and (Loss) Earnings Per Share Assuming Dilution to Non- (In thousands, except per share) |
||||||
(Unaudited) Three Months Ended |
(Unaudited) Six Months Ended |
|||||
June 30, |
June 30, |
|||||
2022 |
2021 |
2022 |
2021 |
|||
Net (Losses) Earnings |
$ (5,342) |
$ 32,975 |
$ 16,190 |
$ 69,298 |
||
Income Taxes |
(8,132) |
11,369 |
(759) |
23,695 |
||
(Losses) Earnings Before Income Taxes |
$ (13,474) |
$ 44,344 |
$ 15,431 |
$ 92,993 |
||
Add: Acquisition-Related Intangible Amortization Expense |
2,782 |
1,428 |
3,423 |
2,935 |
||
Add: Restructuring Expenses, Net |
5,582 |
1,794 |
8,917 |
5,235 |
||
Add: Separation Costs |
230 |
1,246 |
770 |
5,636 |
||
Add: Non-Cash Inventory Fair Value Adjustment |
23,023 |
— |
23,023 |
— |
||
Add: Acquisition-Related Costs |
8,033 |
— |
11,497 |
— |
||
Non-GAAP Earnings Before Income Taxes |
26,176 |
48,812 |
63,061 |
106,799 |
||
Income taxes, calculated using a non-GAAP Effective Tax Rate |
1,388 |
12,515 |
10,796 |
27,213 |
||
Non-GAAP Net Earnings |
$ 24,788 |
$ 36,297 |
$ 52,265 |
$ 79,586 |
||
(Losses) Earnings Per Share Assuming Dilution |
$ (0.17) |
$ 0.95 |
$ 0.51 |
$ 1.99 |
||
Add: Acquisition-Related Intangible Amortization Expense |
0.09 |
0.04 |
0.11 |
0.08 |
||
Add: Restructuring Expenses, Net |
0.18 |
0.05 |
0.28 |
0.15 |
||
Add: Separation Costs |
0.01 |
0.04 |
0.02 |
0.16 |
||
Add: Non-Cash Inventory Fair Value Adjustment |
0.74 |
— |
0.73 |
— |
||
Add: Acquisition-Related Costs |
0.26 |
— |
0.37 |
— |
||
Tax Effect of Non-GAAP adjustments |
(0.30) |
(0.03) |
(0.37) |
(0.10) |
||
Non-GAAP Earnings Per Share Assuming Dilution(1) |
$ 0.79 |
$ 1.05 |
$ 1.66 |
$ 2.29 |
||
Weighted Average Shares Outstanding Assuming Dilution(2) |
31,222 |
34,561 |
31,490 |
34,739 |
(1) |
In some cases, the sum of individual EPS amounts may not equal total non-GAAP EPS calculations due to rounding. |
(2) |
For the three months ended June 30, 2022, the GAAP Weighted Average Shares Outstanding Assuming Dilution was 30,827 and |
The Aaron's Company, Inc. Non-GAAP Financial Information Quarterly EBITDA by Segment (In thousands) |
|||||
(Unaudited) |
|||||
Three Months Ended June 30, 2022 |
|||||
Aaron's |
BrandsMart |
Unallocated |
Elimination |
Total |
|
Net Earnings (Losses) |
$ 29,520 |
$ (15,919) |
$ (18,604) |
$ (339) |
$ (5,342) |
Income Taxes |
— |
— |
(8,132) |
— |
(8,132) |
Earnings (Losses) Before Income Taxes |
$ 29,520 |
$ (15,919) |
$ (26,736) |
$ (339) |
$ (13,474) |
Interest Expense |
— |
— |
2,463 |
— |
2,463 |
Depreciation |
17,814 |
1,189 |
364 |
— |
19,367 |
Amortization |
700 |
2,178 |
— |
— |
2,878 |
EBITDA |
$ 48,034 |
$ (12,552) |
$ (23,909) |
$ (339) |
$ 11,234 |
Separation Costs |
— |
— |
230 |
— |
230 |
Restructuring Expenses, Net |
— |
— |
5,582 |
— |
5,582 |
Acquisition-Related Costs |
— |
— |
8,033 |
— |
8,033 |
Non-Cash Inventory Fair Value Adjustment |
— |
23,023 |
— |
— |
23,023 |
Adjusted EBITDA |
$ 48,034 |
$ 10,471 |
$ (10,064) |
$ (339) |
$ 48,102 |
(Unaudited) |
|||||
Three Months Ended June 30, 2021 |
|||||
Aaron's |
BrandsMart |
Unallocated |
Elimination |
Total |
|
Net Earnings (Losses) |
$ 61,665 |
$ — |
$ (28,690) |
$ — |
$ 32,975 |
Income Taxes |
— |
— |
11,369 |
— |
11,369 |
Earnings (Losses) Before Income Taxes |
$ 61,665 |
$ — |
$ (17,321) |
$ — |
$ 44,344 |
Interest Expense |
— |
— |
451 |
— |
451 |
Depreciation |
15,377 |
— |
504 |
— |
15,881 |
Amortization |
1,599 |
— |
— |
— |
1,599 |
EBITDA |
$ 78,641 |
$ — |
$ (16,366) |
$ — |
$ 62,275 |
Separation Costs |
— |
— |
1,246 |
— |
1,246 |
Restructuring Expenses, Net |
— |
— |
1,794 |
— |
1,794 |
Adjusted EBITDA |
$ 78,641 |
$ — |
$ (13,326) |
$ — |
$ 65,315 |
The Aaron's Company, Inc. Non-GAAP Financial Information Six Months EBITDA by Segment (In thousands) |
|||||
(Unaudited) |
|||||
Six Months Ended June 30, 2022 |
|||||
Aaron's |
BrandsMart |
Unallocated |
Elimination |
Total |
|
Net Earnings (Losses) |
$ 81,681 |
$ (15,919) |
$ (49,233) |
$ (339) |
$ 16,190 |
Income Taxes |
— |
— |
(759) |
— |
(759) |
Earnings (Losses) Before Income Taxes |
$ 81,681 |
$ (15,919) |
$ (49,992) |
$ (339) |
$ 15,431 |
Interest Expense |
— |
— |
2,813 |
— |
2,813 |
Depreciation |
34,802 |
1,189 |
761 |
— |
36,752 |
Amortization |
1,464 |
2,178 |
— |
— |
3,642 |
EBITDA |
$ 117,947 |
$ (12,552) |
$ (46,418) |
$ (339) |
$ 58,638 |
Separation Costs |
— |
— |
770 |
— |
770 |
Restructuring Expenses, Net |
— |
— |
8,917 |
— |
8,917 |
Acquisition-Related Costs |
— |
— |
11,497 |
— |
11,497 |
Non-Cash Inventory Fair Value Adjustment |
— |
23,023 |
— |
— |
23,023 |
Adjusted EBITDA |
$ 117,947 |
$ 10,471 |
$ (25,234) |
$ (339) |
$ 102,845 |
(Unaudited) |
|||||
Six Months Ended June 30, 2021 |
|||||
Aaron's |
BrandsMart |
Unallocated |
Elimination |
Total |
|
Net Earnings (Losses) |
$ 132,918 |
$ — |
$ (63,620) |
$ — |
$ 69,298 |
Income Taxes |
— |
— |
23,695 |
— |
23,695 |
Earnings (Losses) Before Income Taxes |
$ 132,918 |
— |
$ (39,925) |
$ — |
$ 92,993 |
Interest Expense |
— |
— |
795 |
— |
795 |
Depreciation |
30,216 |
— |
1,048 |
— |
31,264 |
Amortization |
3,283 |
— |
— |
— |
3,283 |
EBITDA |
$ 166,417 |
— |
$ (38,082) |
$ — |
$ 128,335 |
Separation Costs |
— |
— |
5,636 |
— |
5,636 |
Restructuring Expenses, Net |
— |
— |
5,235 |
— |
5,235 |
Adjusted EBITDA |
$ 166,417 |
$ — |
$ (27,211) |
$ — |
$ 139,206 |
Reconciliation of 2022 Current Outlook for Adjusted EBITDA (In thousands) |
|||
Fiscal Year 2022 Ranges |
|||
Aaron's Business |
BrandsMart |
Consolidated Total |
|
Estimated Net Earnings |
$10,000 - $24,000 |
||
Income Taxes |
$250 - $750 |
||
Projected Earnings Before Income Taxes |
$105,000 - $118,000 |
($11,000) - ($8,000) |
$10,250 - $24,750 |
Interest Expense |
— |
— |
$10,500 - $11,000 |
Depreciation and Amortization |
$75,000 - $77,000 |
$8,000 - $10,000 |
$85,000 - $90,000 |
Projected EBITDA |
$180,000 - $195,000 |
($3,000) - $2,000 |
$105,750 - $125,750 |
Other Adjustments, Net1 |
— |
$23,000 |
$44,250 |
Projected Adjusted EBITDA |
$180,000 - $195,000 |
$20,000 - $25,000 |
$150,000 - $170,000 |
(1) |
Other Adjustments, Net includes non-GAAP charges related to restructuring charges, separation costs |
Reconciliation of 2022 Current Outlook for Earnings Per Share Assuming Dilution to Non-GAAP Earnings Per Share Assuming Dilution |
||
Fiscal Year 2022 Range |
||
Low |
High |
|
Projected Earnings Per Share Assuming Dilution |
$ 0.30 |
$ 0.80 |
Add Sum of Other Adjustments1 |
1.45 |
1.35 |
Projected Non-GAAP Earnings Per Share Assuming Dilution |
$ 1.75 |
$ 2.15 |
(1) |
Includes the non-GAAP charges related to restructuring charges, separation costs associated with the |
Reconciliation of 2022 Current Outlook for Free Cash Flow (In thousands) |
|
Fiscal Year 2022 Ranges |
|
Consolidated Total |
|
Cash Provided by Operating Activities |
$126,500 - $154,500 |
Add: Proceeds from Real Estate Transactions |
$12,000 - $14,000 |
Add: Acquisition-Related Transaction Costs |
$11,500 |
Less: Capital Expenditures |
($100,000 - $120,000) |
Free Cash Flow |
$50,000 - $60,000 |
Reconciliation of 2022 Previous Outlook for Adjusted EBITDA (In thousands) |
||||
Fiscal Year 2022 Ranges |
||||
Aaron's Business |
BrandsMart1 |
Consolidated Total2 |
||
Estimated Net Earnings |
$75,000 - $81,000 |
|||
Income Taxes |
26,000 - 28,000 |
|||
Projected Earnings Before Income Taxes |
N/A |
$13,500 - $16,500 |
$101,000 - $109,000 |
|
Interest Expense |
N/A |
— |
9,000 - 10,000 |
|
Depreciation and Amortization |
N/A |
4,000 - 5,000 |
80,000 - 85,000 |
|
Projected EBITDA |
N/A |
$17,500 - $21,500 |
$190,000 - $204,000 |
|
Projected Other Adjustments, Net |
N/A |
2,500 - 3,500 |
10,000 - 11,000 |
|
Projected Adjusted EBITDA |
N/A |
$20,000 - $25,000 |
$200,000 - $215,000 |
(1) |
Amortization related to the acquired BrandsMart intangible assets was excluded from the Previous |
(2) |
Projected Other Adjustments, Net includes the non-GAAP charges related to restructuring charges, |
Reconciliation of 2022 Previous Outlook for Earnings Per Share Assuming Dilution to Non-GAAP Earnings Per Share Assuming Dilution |
||
Fiscal Year 2022 Range |
||
Low |
High |
|
Projected Earnings Per Share Assuming Dilution |
$ 2.39 |
$ 2.57 |
Add Sum of Projected Other Adjustments1 |
0.26 |
0.33 |
Projected Non-GAAP Earnings Per Share Assuming Dilution |
$ 2.65 |
$ 2.90 |
(1) |
Includes the non-GAAP charges related to restructuring charges, separation costs associated with the |
Reconciliation of 2022 Previous Outlook for Free Cash Flow (In thousands) |
|
Fiscal Year 2022 Ranges |
|
Consolidated Total |
|
Cash Provided by Operating Activities |
$139,000 - $173,000 |
Add: Proceeds from Real Estate Transactions |
6,000 - 7,000 |
Less: Capital Expenditures |
(100,000 - 125,000) |
Free Cash Flow |
$45,000 - $55,000 |
ИСТОЧНИК The Aaron's Company, Inc.
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