ATLANTA, July 31, 2023 /PRNewswire/ -- The Aaron's Company, Inc. (NYSE: AAN) today released its second 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.

Second Quarter 2023 Consolidated Results¹:

• Revenues were $530.4 million, a decrease of 13.1%
• Net earnings were $6.5 million, an increase of 222.0%; Non-GAAP net earnings² were $12.2 million, a decrease of 50.6%
• Adjusted EBITDA^2,3 was $42.4 million, a decrease of 17.0%
• Diluted EPS was $0.21; Non-GAAP diluted EPS² was $0.39
• Write-offs were 5.4% in the Aaron's Business, an improvement of 30 basis points
• Reduced debt $36.1 million in the quarter and $124.3 million since the prior year quarter-end
• Updates 2023 full year outlook; lowers revenues, maintains adjusted EBITDA, and increases adjusted free cash flow

Second Quarter 2023 Key Items:

The Aaron's Company

• Earnings were ahead of internal expectations largely due to ongoing expense controls, despite lower revenues in both business segments
• Ended the quarter with cash and cash equivalents of $38.4 million and debt of $186.1 million, resulting in a net debt² reduction of $30.2 million in the quarter primarily due to strong cash provided by operating activities

Aaron's Business

• Earnings before income taxes were $30.8 million; adjusted EBITDA was $49.5 million, which exceeded internal expectations and increased 3.0% as compared to the prior year quarter primarily due to lower total operating expenses and lower write-offs
• Personnel and other operating expenses benefited from cost optimization initiatives and ongoing investments in technology platforms and marketing analytics
• Ended the quarter with 230 GenNext stores, 101 hubs, and 101 showrooms
• GenNext stores accounted for approximately 29% of lease revenues & fees and retail sales
• E-commerce revenues increased 5.5% as compared to the prior year quarter and represented 17.9% of lease revenues

BrandsMart

• Earnings before income taxes were $1.1 million; adjusted EBITDA was $4.5 million, which exceeded internal expectations despite lower revenues due to continued pressure on customer demand
• Began construction on first new BrandsMart store planned to open in Augusta, GA in Q4 2023

The Company will host an earnings conference call tomorrow, August 1, 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/457512107. 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.