ATLANTA, April 24, 2023 /PRNewswire/ -- The Aaron's Company, Inc. (NYSE: AAN) today released its first quarter 2023 financial results. Complete financial results are available at  investor.aarons.com. Highlights of those results are included below and in the attached supplement.

First Quarter 2023 Consolidated Results:

• Revenues were $554.4 million, an increase of 21.5% due to the BrandsMart acquisition
• Net earnings were $12.8 million, a decrease of 40.6%; Non-GAAP net earnings¹ were $20.5 million, a decrease of 25.5%
• Adjusted EBITDA^1,2 was $45.9 million, a decrease of 20.7%
• Diluted EPS was $0.41; Non-GAAP diluted EPS¹ was $0.66
• Updated 2023 full year outlook; raised EPS and adjusted free cash flow

First Quarter 2023 Key Items:

The Aaron's Company

• Earnings were ahead of internal expectations, due in part to reduced write-offs and continued implementation of improved expense controls, despite lower revenues in both segments
• Reduced net debt by $36.9 million in the quarter primarily due to strong cash provided by operating activities; ended the quarter with cash and cash equivalents of $44.3 million and debt of $222.1 million

Aaron's Business

• Softer tax refund season led to fewer exercises of early purchase options, resulting in lower than expected revenue and a larger than expected lease portfolio size to end the quarter
• Lease decisioning enhancements led to a 170 bps sequential reduction to the provision for lease merchandise write-offs as a percentage of lease revenues & fees
• GenNext stores accounted for approximately 27% of lease revenues & fees and retail sales
• E-commerce revenues increased 12.3% as compared to the prior year quarter and represented 17.9% of lease revenues

BrandsMart

• Earnings exceeded internal expectations despite lower revenues due to continued pressure on customer demand
• First new BrandsMart store planned to open in Augusta, GA in Q4 2023

The Company will host an earnings conference call tomorrow, April 25, 2023, at 8:30 a.m. ET. Chief Executive Officer Douglas A. Lindsay will host the call along with President Steve Olsen and Chief Financial Officer C. Kelly Wall. A live audio webcast of the conference call and presentation slides may be accessed at investor.aarons.com and the hosting website at https://events.q4inc.com/attendee/104089893. A transcript of the webcast will also be available at 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 1,260 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, as well as its e-commerce platform. BrandsMart Leasing offers lease-to-own solutions to customers of BrandsMart U.S.A. Woodhaven is the Company's furniture manufacturing division. For more information, visit investor.aarons.com, aarons.com, and brandsmartusa.com.

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SOURCE The Aaron's Company, Inc.