AARON'S INC

CIK:0000706688|SEC Filings

Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
REVENUES:
Revenues	$ 1,030,119	$ 968,141	$ 2,131,393	$ 1,980,244
COSTS AND EXPENSES:
Depreciation of Lease Merchandise	547,551	474,868	1,144,958	975,688
Operating Expenses	343,850	383,576	756,820	770,792
Restructuring Expenses, Net	6,991	18,738	29,277	32,019
Impairment of Goodwill	0	0	446,893	0
Other Operating (Income) Expense, Net	(96)	(3,486)	74	(4,383)
Costs and Expenses, Total	936,677	908,295	2,446,846	1,846,543
OPERATING PROFIT (LOSS)	93,442	59,846	(315,453)	133,701
Interest Income	227	944	419	1,045
Interest Expense	(2,853)	(4,300)	(6,652)	(9,256)
Other Non-Operating Income (Expense), Net	1,721	329	(230)	1,637
EARNINGS (LOSS) BEFORE INCOME TAXES	92,537	56,819	(321,916)	127,127
INCOME TAX EXPENSE (BENEFIT)	24,160	14,169	(110,288)	28,399
NET EARNINGS (LOSS)	$ 68,377	$ 42,650	$ (211,628)	$ 98,728
EARNINGS (LOSS) PER SHARE
Basic (in dollars per share)	$ 1.02	$ 0.63	$ (3.16)	$ 1.46
Assuming Dilution (in dollars per share)	1.01	0.62	(3.16)	1.44
CASH DIVIDENDS DECLARED PER SHARE:
Common Stock (in dollars per share)	$ 0.040	$ 0.035	$ 0.080	$ 0.070
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic (in shares)	67,097	67,687	66,959	67,492
Assuming Dilution (in shares)	67,523	68,793	66,959	68,784
Lease Revenues and Fees
REVENUES:
Revenues	$ 969,987	$ 907,565	$ 2,017,900	$ 1,851,722
Retail Sales
REVENUES:
Revenues	14,020	8,898	23,551	21,707
COSTS AND EXPENSES:
Costs of Sales	9,065	5,651	15,927	14,283
Non-Retail Sales
REVENUES:
Revenues	33,044	34,124	59,890	71,105
COSTS AND EXPENSES:
Costs of Sales	29,316	28,948	52,897	58,144
Franchise Royalties and Fees
REVENUES:
Revenues	3,365	8,605	10,089	17,812
Interest and Fees on Loans Receivable
REVENUES:
Revenues	9,414	8,610	19,322	17,256
Other
REVENUES:
Revenues	$ 289	$ 339	$ 641	$ 642

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
OPERATING ACTIVITIES:
Net (Loss) Earnings	$ (211,628)	$ 98,728
Adjustments to Reconcile Net (Loss) Earnings to Cash Provided by Operating Activities:
Depreciation of Lease Merchandise	1,144,958	975,688
Other Depreciation and Amortization	50,154	53,862
Accounts Receivable Provision	158,587	137,611
Provision for Credit Losses on Loans Receivable	16,150	9,223
Stock-Based Compensation	12,487	14,231
Deferred Income Taxes	(73,656)	19,928
Impairment of Goodwill and Other Assets	468,634	26,267
Non-Cash Lease Expense	50,638	58,073
Other Changes, Net	5,109	(3,390)
Changes in Operating Assets and Liabilities, Net of Effects of Acquisitions and Dispositions:
Additions to Lease Merchandise	(1,032,977)	(1,141,863)
Book Value of Lease Merchandise Sold or Disposed	201,058	196,219
Accounts Receivable	(134,467)	(126,112)
Prepaid Expenses and Other Assets	(4,711)	(6,847)
Income Tax Receivable	(38,797)	17,227
Operating Lease Liabilities	(53,544)	(62,541)
Accounts Payable and Accrued Expenses	(19,713)	(21,465)
Accrued Regulatory Expense	(175,000)	0
Customer Deposits and Advance Payments	(2,527)	(200)
Cash Provided by Operating Activities	360,755	244,639
INVESTING ACTIVITIES:
Investments in Loans Receivable	(39,986)	(29,506)
Proceeds from Loans Receivable	32,248	27,720
Outflows on Purchases of Property, Plant and Equipment	(33,885)	(48,059)
Proceeds from Property, Plant and Equipment	2,220	1,425
Outflows on Acquisitions of Businesses and Customer Agreements, Net of Cash Acquired	(1,209)	(7,612)
Proceeds from Dispositions of Businesses and Customer Agreements, Net of Cash Disposed	359	755
Cash Used in Investing Activities	(40,253)	(55,277)
FINANCING ACTIVITIES:
Repayments on Revolving Facility, Net	0	(16,000)
Proceeds from Debt	5,625	0
Repayments on Debt	(60,748)	(61,465)
Dividends Paid	(5,351)	(4,717)
Acquisition of Treasury Stock	0	(14,414)
Issuance of Stock Under Stock Option Plans	2,250	5,056
Shares Withheld for Tax Payments	(5,877)	(12,977)
Debt Issuance Costs	(1,020)	0
Cash Used in Financing Activities	(65,121)	(104,517)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(79)	119
Increase in Cash and Cash Equivalents	255,302	84,964
Cash and Cash Equivalents at Beginning of Period	57,755	15,278
Cash and Cash Equivalents at End of Period	$ 313,057	$ 100,242

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
ASSETS:
Cash and Cash Equivalents	$ 313,057	$ 57,755
Accounts Receivable (net of allowances of $73,294 in 2020 and $76,293 in 2019)	79,933	104,159
Lease Merchandise (net of accumulated depreciation and allowances of $878,259 in 2020 and $896,056 in 2019)	1,119,640	1,433,417
Loans Receivable (net of allowances and unamortized fees of $37,649 in 2020 and $21,134 in 2019)	58,870	75,253
Property, Plant and Equipment at Cost (net of accumulated depreciation of $326,340 in 2020 and $311,252 in 2019)	228,088	237,666
Operating Lease Right-of-Use Assets	279,802	329,211
Goodwill	288,801	736,582
Other Intangibles (net of accumulated amortization of $164,324 in 2020 and $151,932 in 2019)	176,104	190,796
Income Tax Receivable	57,487	18,690
Prepaid Expenses and Other Assets	113,920	114,271
Total Assets	2,715,702	3,297,800
LIABILITIES & SHAREHOLDERS’ EQUITY:
Accounts Payable and Accrued Expenses	249,182	272,816
Accrued Regulatory Expense	0	175,000
Deferred Income Taxes Payable	234,380	310,395
Customer Deposits and Advance Payments	89,435	91,914
Operating Lease Liabilities	335,705	369,386
Debt	285,801	341,030
Total Liabilities	1,194,503	1,560,541
Commitments and Contingencies (Note 4)
SHAREHOLDERS' EQUITY:
Common Stock, Par Value $0.50 Per Share: Authorized: 225,000,000 Shares at June 30, 2020 and December 31, 2019; Shares Issued: 90,752,123 at June 30, 2020 and December 31, 2019	45,376	45,376
Additional Paid-in Capital	290,653	290,229
Retained Earnings	1,805,869	2,029,613
Accumulated Other Comprehensive Loss	(1,442)	(19)
Stockholders' Equity before Treasury Stock, Total	2,140,456	2,365,199
Less: Treasury Shares at Cost
Common Stock: 23,613,045 Shares at June 30, 2020 and 24,034,053 at December 31, 2019	(619,257)	(627,940)
Total Shareholders’ Equity	1,521,199	1,737,259
Total Liabilities & Shareholders’ Equity	$ 2,715,702	$ 3,297,800