Aaron's Company, Inc.

CIK:0001821393|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) EARNINGS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
REVENUES:
Revenues	$ 503,125	$ 530,372	$ 1,014,622	$ 1,084,733
COSTS OF REVENUES:
Total cost of revenue	231,107	248,100	468,721	506,767
GROSS PROFIT	272,018	282,272	545,901	577,966
OPERATING EXPENSES:
Personnel Costs	126,326	124,945	251,394	256,390
Other Operating Expenses, Net	126,563	121,670	258,498	245,815
Provision for Lease Merchandise Write-Offs	20,565	19,001	41,072	39,161
Restructuring Expenses, Net	2,928	4,835	10,826	10,124
Separation Costs	0	0	17	129
Acquisition-Related Costs	7,981	546	8,861	2,394
Operating expenses, total	284,363	270,997	570,668	554,013
OPERATING (LOSS) PROFIT	(12,345)	11,275	(24,767)	23,953
Interest Expense	(4,161)	(3,910)	(8,695)	(8,268)
Other Non-Operating Income, Net	256	637	893	1,209
(LOSS) EARNINGS BEFORE INCOME TAXES	(16,250)	8,002	(32,569)	16,894
INCOME TAX (BENEFIT) EXPENSE	(4,347)	1,485	(6,485)	(2,421)
NET (LOSS) EARNINGS	$ (11,903)	$ 6,517	$ (26,084)	$ 19,315
(LOSS) EARNINGS PER SHARE (in dollars per share)	$ (0.39)	$ 0.21	$ (0.85)	$ 0.63
(LOSS) EARNINGS PER SHARE ASSUMING DILUTION (in dollars per share)	$ (0.39)	$ 0.21	$ (0.85)	$ 0.62
Lease Revenues and Fees
REVENUES:
Revenues	$ 335,658	$ 353,751	$ 681,667	$ 727,546
COSTS OF REVENUES:
Costs of goods and services sold	108,275	117,400	220,815	242,541
Retail Sales
REVENUES:
Revenues	139,549	148,046	276,478	298,592
COSTS OF REVENUES:
Costs of goods and services sold	104,310	111,284	210,272	224,813
Non-Retail Sales
REVENUES:
Revenues	22,062	22,800	44,704	46,735
COSTS OF REVENUES:
Costs of goods and services sold	18,522	19,416	37,634	39,413
Franchise Royalties and Other Revenues
REVENUES:
Revenues	$ 5,856	$ 5,775	$ 11,773	$ 11,860

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
OPERATING ACTIVITIES:
Net (Loss) Earnings	$ (26,084)	$ 19,315
Adjustments to Reconcile Net (Loss) Earnings to Cash (Used in) Provided by Operating Activities:
Depreciation of Lease Merchandise	217,175	238,783
Other Depreciation and Amortization	46,035	44,837
Provision for Lease Merchandise Write-Offs	41,072	39,161
Accounts Receivable Provision	20,342	21,111
Stock-Based Compensation	5,400	5,835
Deferred Income Taxes	(9,154)	(6,553)
Impairment of Assets	4,226	1,716
Non-Cash Lease Expense	60,553	58,755
Other Changes, Net	(5,015)	(3,398)
Changes in Operating Assets and Liabilities:
Lease Merchandise	(262,449)	(221,851)
Merchandise Inventories	1,655	3,285
Accounts Receivable	(15,613)	(13,019)
Prepaid Expenses and Other Assets	(3,752)	(6,935)
Income Tax Receivable	1,873	(4,504)
Operating Lease Right-of-Use Assets and Liabilities	(61,473)	(59,811)
Accounts Payable and Accrued Expenses	(16,139)	1,712
Customer Deposits and Advance Payments	(5,561)	(4,075)
Cash (Used in) Provided by Operating Activities	(6,909)	114,364
INVESTING ACTIVITIES:
Purchases of Property, Plant, and Equipment	(40,275)	(41,565)
Proceeds from Dispositions of Property, Plant, and Equipment	8,145	4,878
Proceeds from Other Investing-Related Activities	2,042	0
Cash Used in Investing Activities	(30,088)	(36,687)
FINANCING ACTIVITIES:
Borrowings on Swing Line Loans, Net	3,900
Repayments on Swing Line Loans, Net		(19,250)
Proceeds from Revolver and Term Loan	21,094	31,094
Repayments on Revolver and Term Loan	(3,281)	(68,281)
Dividends Paid	(7,825)	(7,306)
Acquisition of Treasury Stock	0	(804)
Issuance of Stock Under Stock Option Plans	323	60
Shares Withheld for Tax Payments	(1,323)	(2,539)
Debt Modification Costs	(729)	0
Cash Provided by (Used in) Financing Activities	12,159	(67,026)
EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(36)	2
(Decrease) Increase in Cash, Cash Equivalents, and Restricted Cash	(24,874)	10,653
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period	60,660	29,341
Cash and Cash Equivalents at End of Period:
Cash and Cash Equivalents	34,161	38,369
Restricted Cash included in Prepaid Expenses and Other Assets	1,625	1,625
Total Cash, Cash Equivalents, and Restricted Cash at End of Period	$ 35,786	$ 39,994

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
ASSETS:
Cash and Cash Equivalents	$ 34,161	$ 59,035
Accounts Receivable (net of allowances of $9,203 at June 30, 2024 and $9,029 at December 31, 2023)	35,050	39,782
Lease Merchandise (net of accumulated depreciation and allowances of $410,185 at June 30, 2024 and $411,641 at December 31, 2023)	622,645	622,262
Merchandise Inventories, Net	88,517	90,172
Property, Plant and Equipment, Net	263,002	269,833
Operating Lease Right-of-Use Assets	447,405	465,824
Goodwill	55,750	55,750
Other Intangibles, Net	103,175	108,158
Income Tax Receivable	8,490	10,363
Prepaid Expenses and Other Assets	112,861	105,397
Total Assets	1,771,056	1,826,576
LIABILITIES & SHAREHOLDERS' EQUITY:
Accounts Payable and Accrued Expenses	273,230	292,175
Deferred Tax Liabilities	76,170	83,217
Customer Deposits and Advance Payments	62,830	68,391
Operating Lease Liabilities	485,377	502,692
Debt	215,763	193,963
Total Liabilities	1,113,370	1,140,438
Commitments and Contingencies (Note 5)
SHAREHOLDERS' EQUITY:
Common Stock, Par Value $0.50 Per Share: Authorized: 112,500,000 Shares at June 30, 2024 and December 31, 2023; Shares Issued: 37,189,351 at June 30, 2024 and 36,656,650 at December 31, 2023	18,595	18,328
Additional Paid-in Capital	756,207	750,751
Retained Earnings	32,252	66,202
Accumulated Other Comprehensive Loss	(257)	(1,355)
Stockholders' equity before treasury stock	806,797	833,926
Treasury Shares at Cost: 6,476,579 Shares at June 30, 2024 and 6,295,216 Shares at December 31, 2023	(149,111)	(147,788)
Total Shareholders' Equity	657,686	686,138
Total Liabilities & Shareholders' Equity	$ 1,771,056	$ 1,826,576