(State or other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol | Name of each exchange on which registered |
Exhibit No. | Description |
Exhibit 104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL |
AARON’S, INC. | |||
By: | /s/ Steven A. Michaels | ||
Date: November 4, 2019 | Steven A. Michaels Chief Financial Officer, President of Strategic Operations |
Contact: | Aaron’s, Inc. | |
Michael P. Dickerson | ||
Vice President, Corporate Communications & Investor Relations | ||
678.402.3950 | ||
Mike.Dickerson@Aarons.com |
• | Revenues of $964 Million; Non-GAAP Revenues Up 8.4% |
• | Diluted EPS $0.58; Non-GAAP Diluted EPS $0.73, Up 5.8% |
• | Progressive Earnings Before Taxes of $53.5 million; EBITDA Up 21.5% |
• | Aaron's Business Grows Revenue Written by 13.7%; E-com Channel Up 49.8% |
Current Outlook1 | Previous Outlook | Original Outlook | |||||||||||||||||
(In thousands, except per share amounts) | Low | High | Low | High | Low | High | |||||||||||||
Aaron's Inc. - Total Revenues | $ | 3,905,000 | $ | 4,010,000 | $ | 3,905,000 | $ | 4,065,000 | $ | 3,905,000 | $ | 4,065,000 | |||||||
Aaron's Inc. - Adjusted EBITDA | 425,000 | 437,000 | 430,000 | 452,000 | 415,000 | 442,000 | |||||||||||||
Aaron's Inc. - Diluted EPS | 2.95 | 3.05 | 3.11 | 3.26 | 3.15 | 3.35 | |||||||||||||
Aaron's Inc. - Diluted Non-GAAP EPS | 3.75 | 3.85 | 3.85 | 4.00 | 3.65 | 3.85 | |||||||||||||
Aaron's Inc. - Capital Expenditures | 90,000 | 100,000 | 100,000 | 120,000 | 100,000 | 120,000 | |||||||||||||
Progressive - Total Revenues | 2,100,000 | 2,150,000 | 2,100,000 | 2,175,000 | 2,100,000 | 2,175,000 | |||||||||||||
Progressive - EBITDA | 275,000 | 280,000 | 275,000 | 285,000 | 260,000 | 275,000 | |||||||||||||
Aaron's Business - Total Revenues | 1,775,000 | 1,825,000 | 1,775,000 | 1,855,000 | 1,775,000 | 1,855,000 | |||||||||||||
Aaron's Business - Adjusted EBITDA | 155,000 | 160,000 | 160,000 | 170,000 | 160,000 | 170,000 | |||||||||||||
Aaron's Business - Annual Same-Store Revenues | (1.0%) | 1.0% | 0.0% | 2.0% | 0.0% | 2.0% | |||||||||||||
DAMI - Total Revenues | 30,000 | 35,000 | 30,000 | 35,000 | 30,000 | 35,000 | |||||||||||||
DAMI - Adjusted EBITDA | (5,000 | ) | (3,000 | ) | (5,000 | ) | (3,000 | ) | (5,000 | ) | (3,000 | ) |
(Unaudited) Three Months Ended | (Unaudited) Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||
Revenues: | |||||||||||||
Lease Revenues and Fees | $ | 906,776 | $ | 880,871 | $ | 2,758,498 | $ | 2,596,876 | |||||
Retail Sales | 8,854 | 7,620 | 30,561 | 22,728 | |||||||||
Non-Retail Sales | 31,085 | 44,368 | 102,190 | 151,259 | |||||||||
Franchise Royalties and Fees | 8,087 | 10,153 | 25,899 | 35,140 | |||||||||
Interest and Fees on Loans Receivable | 8,687 | 9,508 | 25,943 | 28,258 | |||||||||
Other | 319 | 551 | 961 | 1,478 | |||||||||
Total | 963,808 | 953,071 | 2,944,052 | 2,835,739 | |||||||||
Costs and Expenses: | |||||||||||||
Depreciation of Lease Merchandise | 489,199 | 434,593 | 1,464,887 | 1,290,015 | |||||||||
Retail Cost of Sales | 5,742 | 4,877 | 20,025 | 14,695 | |||||||||
Non-Retail Cost of Sales | 24,913 | 35,214 | 83,057 | 130,302 | |||||||||
Operating Expenses | 383,264 | 420,602 | 1,154,056 | 1,199,171 | |||||||||
Restructuring Expenses, Net | 5,516 | 537 | 37,535 | 561 | |||||||||
Other Operating Income, Net | (329 | ) | (38 | ) | (4,712 | ) | (286 | ) | |||||
Total | 908,305 | 895,785 | 2,754,848 | 2,634,458 | |||||||||
Operating Profit | 55,503 | 57,286 | 189,204 | 201,281 | |||||||||
Interest Income | 360 | 18 | 1,405 | 374 | |||||||||
Interest Expense | (3,991 | ) | (3,735 | ) | (13,247 | ) | (11,868 | ) | |||||
Impairment of Investment | — | — | — | (20,098 | ) | ||||||||
Other Non-Operating (Expense) Income, Net | (207 | ) | (154 | ) | 1,430 | 458 | |||||||
Earnings Before Income Tax Expense | 51,665 | 53,415 | 178,792 | 170,147 | |||||||||
Income Tax Expense | 11,864 | 9,695 | 40,263 | 35,680 | |||||||||
Net Earnings | $ | 39,801 | $ | 43,720 | $ | 138,529 | $ | 134,467 | |||||
Earnings Per Share | $ | 0.59 | $ | 0.64 | $ | 2.05 | $ | 1.93 | |||||
Earnings Per Share Assuming Dilution | $ | 0.58 | $ | 0.62 | $ | 2.02 | $ | 1.89 | |||||
Weighted Average Shares Outstanding | 67,400 | 68,819 | 67,461 | 69,521 | |||||||||
Weighted Average Shares Outstanding Assuming Dilution | 68,652 | 70,139 | 68,739 | 70,996 |
(Unaudited) | |||||||||
September 30, 2019 | December 31, 2018 | ||||||||
ASSETS: | |||||||||
Cash and Cash Equivalents | $ | 150,261 | $ | 15,278 | |||||
Accounts Receivable (net of allowances of $74,752 in 2019 and $62,704 in 2018) | 93,090 | 98,159 | |||||||
Lease Merchandise (net of accumulated depreciation and allowances of $890,932 in 2019 and $816,928 in 2018) | 1,281,872 | 1,318,470 | |||||||
Loans Receivable (net of allowances and unamortized fees of $19,970 in 2019 and $19,941 in 2018) | 72,130 | 76,153 | |||||||
Property, Plant and Equipment at Cost (net of accumulated depreciation of $311,155 in 2019 and $284,287 in 2018) | 230,347 | 229,492 | |||||||
Operating Lease Right-of-Use Assets | 330,508 | — | |||||||
Goodwill | 735,782 | 733,170 | |||||||
Other Intangibles (net of accumulated amortization of $147,389 in 2019 and $130,116 in 2018) | 198,216 | 228,600 | |||||||
Income Tax Receivable | 15,931 | 29,148 | |||||||
Prepaid Expenses and Other Assets | 111,483 | 98,222 | |||||||
Total Assets | $ | 3,219,620 | $ | 2,826,692 | |||||
LIABILITIES & SHAREHOLDERS’ EQUITY: | |||||||||
Accounts Payable and Accrued Expenses | $ | 254,234 | $ | 293,153 | |||||
Deferred Income Taxes Payable | 297,110 | 267,500 | |||||||
Customer Deposits and Advance Payments | 79,071 | 80,579 | |||||||
Operating Lease Liabilities | 374,443 | — | |||||||
Debt | 347,107 | 424,752 | |||||||
Total Liabilities | 1,351,965 | 1,065,984 | |||||||
SHAREHOLDERS' EQUITY: | |||||||||
Common Stock, Par Value $0.50 Per Share: Authorized: 225,000,000 Shares at September 30, 2019 and December 31, 2018; Shares Issued: 90,752,123 at September 30, 2019 and December 31, 2018 | 45,376 | 45,376 | |||||||
Additional Paid-in Capital | 283,454 | 278,922 | |||||||
Retained Earnings | 2,139,353 | 2,005,344 | |||||||
Accumulated Other Comprehensive Loss | (348 | ) | (1,087 | ) | |||||
Less: Treasury Shares at Cost | |||||||||
Common Stock: 23,602,055 Shares at September 30, 2019 and 23,567,979 at December 31, 2018 | (600,180 | ) | (567,847 | ) | |||||
Total Shareholders’ Equity | 1,867,655 | 1,760,708 | |||||||
Total Liabilities and Shareholders' Equity | $ | 3,219,620 | 2,826,692 |
(Unaudited) | Nine Months Ended September 30, | ||||||
(In Thousands) | 2019 | 2018 | |||||
OPERATING ACTIVITIES: | |||||||
Net Earnings | $ | 138,529 | $ | 134,467 | |||
Adjustments to Reconcile Net Earnings to Cash Provided by Operating Activities: | |||||||
Depreciation of Lease Merchandise | 1,464,887 | 1,290,015 | |||||
Other Depreciation and Amortization | 79,419 | 68,730 | |||||
Accounts Receivable Provision | 228,608 | 188,763 | |||||
Provision for Credit Losses on Loans Receivable | 15,291 | 16,011 | |||||
Stock-Based Compensation | 20,261 | 21,793 | |||||
Deferred Income Taxes | 28,747 | 30,166 | |||||
Impairment of Assets | 29,031 | 20,098 | |||||
Non-Cash Lease Expense | 86,367 | — | |||||
Other Changes, Net | 3,423 | (1,625 | ) | ||||
Changes in Operating Assets and Liabilities, Net of Effects of Acquisitions and Dispositions: | |||||||
Additions to Lease Merchandise | (1,723,385 | ) | (1,583,184 | ) | |||
Book Value of Lease Merchandise Sold or Disposed | 298,904 | 289,859 | |||||
Accounts Receivable | (225,372 | ) | (181,512 | ) | |||
Prepaid Expenses and Other Assets | (19,642 | ) | (6,685 | ) | |||
Income Tax Receivable | 13,217 | 70,299 | |||||
Operating Lease Liabilities | (91,333 | ) | — | ||||
Accounts Payable and Accrued Expenses | 5,762 | 7,998 | |||||
Customer Deposits and Advance Payments | (1,954 | ) | (2,198 | ) | |||
Cash Provided by Operating Activities | 350,760 | 362,995 | |||||
INVESTING ACTIVITIES: | |||||||
Investments in Loans Receivable | (49,311 | ) | (49,311 | ) | |||
Proceeds from Loans Receivable | 40,423 | 44,016 | |||||
Proceeds from Investments | — | 666 | |||||
Outflows on Purchases of Property, Plant and Equipment | (67,049 | ) | (52,927 | ) | |||
Proceeds from Property, Plant and Equipment | 2,805 | 5,488 | |||||
Outflows on Acquisitions of Businesses and Customer Agreements, Net of Cash Acquired | (12,873 | ) | (141,079 | ) | |||
Proceeds from Dispositions of Businesses and Customer Agreements, Net of Cash Disposed | 2,813 | 802 | |||||
Cash Used in Investing Activities | (83,192 | ) | (192,345 | ) | |||
FINANCING ACTIVITIES: | |||||||
(Repayments) Borrowings on Revolving Facility, Net | (16,000 | ) | 25,000 | ||||
Repayments on Debt | (62,317 | ) | (96,857 | ) | |||
Dividends Paid | (7,086 | ) | (4,186 | ) | |||
Acquisition of Treasury Stock | (39,422 | ) | (100,004 | ) | |||
Issuance of Stock Under Stock Option Plans | 5,115 | 6,684 | |||||
Shares Withheld for Tax Payments | (12,977 | ) | (17,282 | ) | |||
Debt Issuance Costs | — | (55 | ) | ||||
Cash Used in Financing Activities | (132,687 | ) | (186,700 | ) | |||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 102 | (1 | ) | ||||
Increase (Decrease) in Cash and Cash Equivalents | 134,983 | (16,051 | ) | ||||
Cash and Cash Equivalents at Beginning of Period | 15,278 | 51,037 | |||||
Cash and Cash Equivalents at End of Period | $ | 150,261 | $ | 34,986 |
(Unaudited) | ||||||||||||
Three Months Ended | ||||||||||||
September 30, 2019 | ||||||||||||
Progressive Leasing1 | Aaron’s Business | DAMI | Consolidated Total | |||||||||
Lease Revenues and Fees | $ | 528,850 | $ | 377,926 | $ | — | $ | 906,776 | ||||
Retail Sales | — | 8,854 | — | 8,854 | ||||||||
Non-Retail Sales | — | 31,085 | — | 31,085 | ||||||||
Franchise Royalties and Fees | — | 8,087 | — | 8,087 | ||||||||
Interest and Fees on Loans Receivable | — | — | 8,687 | 8,687 | ||||||||
Other | — | 319 | — | 319 | ||||||||
Total Revenues | $ | 528,850 | $ | 426,271 | $ | 8,687 | $ | 963,808 |
(Unaudited) | ||||||||||||
Three Months Ended | ||||||||||||
September 30, 2018 | ||||||||||||
Progressive Leasing | Aaron’s Business | DAMI | Consolidated Total | |||||||||
Lease Revenues and Fees | $ | 504,407 | $ | 376,464 | $ | — | $ | 880,871 | ||||
Retail Sales | — | 7,620 | — | 7,620 | ||||||||
Non-Retail Sales | — | 44,368 | — | 44,368 | ||||||||
Franchise Royalties and Fees | — | 10,153 | — | 10,153 | ||||||||
Interest and Fees on Loans Receivable | — | — | 9,508 | 9,508 | ||||||||
Other | — | 551 | — | 551 | ||||||||
Total Revenues | $ | 504,407 | $ | 439,156 | $ | 9,508 | $ | 953,071 | ||||
Progressive Bad Debt Expense | 64,213 | — | — | 64,213 | ||||||||
Total Revenues, net of Progressive Bad Debt Expense1 | $ | 440,194 | $ | 439,156 | $ | 9,508 | $ | 888,858 |
(Unaudited) | ||||||||||||
Nine Months Ended | ||||||||||||
September 30, 2019 | ||||||||||||
Progressive Leasing1 | Aaron’s Business | DAMI | Consolidated Total | |||||||||
Lease Revenues and Fees | $ | 1,568,584 | $ | 1,189,914 | $ | — | $ | 2,758,498 | ||||
Retail Sales | — | 30,561 | — | 30,561 | ||||||||
Non-Retail Sales | — | 102,190 | — | 102,190 | ||||||||
Franchise Royalties and Fees | — | 25,899 | — | 25,899 | ||||||||
Interest and Fees on Loans Receivable | — | — | 25,943 | 25,943 | ||||||||
Other | — | 961 | — | 961 | ||||||||
Total Revenues | $ | 1,568,584 | $ | 1,349,525 | $ | 25,943 | $ | 2,944,052 |
(Unaudited) | ||||||||||||
Nine Months Ended | ||||||||||||
September 30, 2018 | ||||||||||||
Progressive Leasing | Aaron’s Business | DAMI | Consolidated Total | |||||||||
Lease Revenues and Fees | $ | 1,474,590 | $ | 1,122,286 | $ | — | $ | 2,596,876 | ||||
Retail Sales | — | 22,728 | — | 22,728 | ||||||||
Non-Retail Sales | — | 151,259 | — | 151,259 | ||||||||
Franchise Royalties and Fees | — | 35,140 | — | 35,140 | ||||||||
Interest and Fees on Loans Receivable | — | — | 28,258 | 28,258 | ||||||||
Other | — | 1,478 | — | 1,478 | ||||||||
Total Revenues | $ | 1,474,590 | $ | 1,332,891 | $ | 28,258 | $ | 2,835,739 | ||||
Progressive Bad Debt Expense | 160,773 | — | — | 160,773 | ||||||||
Total Revenues, net of Progressive Bad Debt Expense1 | $ | 1,313,817 | $ | 1,332,891 | $ | 28,258 | $ | 2,674,966 |
• | Are widely used by investors to measure a company’s operating performance without regard to items excluded from the calculation of such measure, which can vary substantially from company to company depending upon accounting methods, book value of assets, capital structure and the method by which assets were acquired, among other factors. |
• | Are a financial measurement that is used by rating agencies, lenders and other parties to evaluate our creditworthiness. |
• | Are used by our management for various purposes, including as a measure of performance of our operating entities and as a basis for strategic planning and forecasting. |
(Unaudited) Three Months Ended | (Unaudited) Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||
Net Earnings | $ | 39,801 | $ | 43,720 | $ | 138,529 | $ | 134,467 | |||||
Add Progressive Leasing-Related Intangible Amortization Expense (1)(2) | 4,175 | 4,186 | 12,600 | 12,616 | |||||||||
Add Franchisee-Related Intangible Amortization Expense(3)(4) | 1,593 | 2,288 | 7,803 | 4,163 | |||||||||
Add Restructuring Expense, net (5)(6) | 4,250 | 415 | 29,082 | 435 | |||||||||
Add Acquisition Transaction and Transition Costs(7)(8) | 248 | 499 | 492 | 501 | |||||||||
Impairment of Investment and Related Expenses(9) | — | — | — | 16,777 | |||||||||
Tax Act Adjustments | — | (2,466 | ) | — | (2,273 | ) | |||||||
Non-GAAP Net Earnings | $ | 50,067 | $ | 48,642 | $ | 188,506 | $ | 166,686 | |||||
Earnings Per Share Assuming Dilution | $ | 0.58 | $ | 0.62 | $ | 2.02 | $ | 1.89 | |||||
Add Progressive Leasing-Related Intangible Amortization Expense (1)(2) | 0.06 | 0.06 | 0.18 | 0.18 | |||||||||
Add Franchisee-Related Intangible Amortization Expense(3)(4) | 0.02 | 0.03 | 0.11 | 0.06 | |||||||||
Add Restructuring Expense, net(5)(6) | 0.06 | 0.01 | 0.42 | 0.01 | |||||||||
Add Acquisition Transaction and Transition Costs(7)(8) | — | 0.01 | 0.01 | 0.01 | |||||||||
Impairment of Investment and Related Expenses(9) | — | — | — | 0.24 | |||||||||
Tax Act Adjustments | — | (0.04 | ) | — | (0.03 | ) | |||||||
Non-GAAP Earnings Per Share Assuming Dilution(10) | $ | 0.73 | $ | 0.69 | $ | 2.74 | $ | 2.35 | |||||
Weighted Average Shares Outstanding Assuming Dilution | 68,652 | 70,139 | 68,739 | 70,996 |
(1) | Net of taxes of $1,245 and $3,662 for the three and nine months ended September 30, 2019 calculated using the effective tax rate for the respective periods. |
(2) | Net of taxes of $1,234 and $3,646 for the three and nine months ended September 30, 2018 calculated using the estimated tax rates of 22.77% and 22.42% for the respective periods. |
(3) | Net of taxes of $475 and $2,268 for the three and nine months ended September 30, 2019 calculated using the effective tax rate for the respective periods. |
(4) | Net of taxes of $675 and $1,203 for the three and nine months ended September 30, 2018 calculated using the estimated tax rates of 22.77% and 22.42% for the respective periods. |
(5) | Net of taxes of $1,266 and $8,453 for the three and nine months ended September 30, 2019 calculated using the effective tax rate for the respective periods. |
(6) | Net of taxes of $122 and $126 for the three and nine months ended September 30, 2018 calculated using the estimated tax rates of 22.77% and 22.42% for the respective periods. |
(7) | Net of taxes of $74 and $143 for the three and nine months ended September 30, 2019 calculated using the effective tax rate for the respective periods. |
(8) | Net of taxes of $147 and $145 for the three and nine months ended September 30, 2018 calculated using the estimated tax rates of 22.77% and 22.42% for the respective periods. |
(9) | Net of taxes of $4,848 for the nine months ended September 30, 2018 calculated using the estimated tax rate of 22.42% for the period. |
(10) | In some cases, the sum of individual EPS amounts may not equal total non-GAAP EPS calculations due to rounding. |
(Unaudited) Three Months Ended | (Unaudited) Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||
Loss Before Income Taxes | $ | (2,740 | ) | $ | (3,065 | ) | $ | (7,133 | ) | $ | (6,663 | ) |
Adjustment to Increase Allowance for Loan Losses During Period | 1,271 | 1,552 | 1,084 | 1,684 | ||||||||
Pre-tax, Pre-provision Loss | $ | (1,469 | ) | $ | (1,513 | ) | $ | (6,049 | ) | $ | (4,979 | ) |
(Unaudited) | ||||||||||||
Three Months Ended | ||||||||||||
September 30, 2019 | ||||||||||||
Progressive Leasing | Aaron’s Business | DAMI | Consolidated Total | |||||||||
Net Earnings | $ | 39,801 | ||||||||||
Income Taxes1 | 11,864 | |||||||||||
Earnings (Loss) Before Income Taxes | $ | 53,473 | $ | 932 | $ | (2,740 | ) | 51,665 | ||||
Interest Expense | 1,910 | 1,210 | 871 | 3,991 | ||||||||
Depreciation | 2,049 | 15,365 | 205 | 17,619 | ||||||||
Amortization | 5,420 | 2,373 | 145 | 7,938 | ||||||||
EBITDA | $ | 62,852 | $ | 19,880 | $ | (1,519 | ) | $ | 81,213 | |||
Restructuring Expenses | — | 5,516 | — | 5,516 | ||||||||
Acquisition Transaction and Transition Costs | — | 322 | — | 322 | ||||||||
Adjusted EBITDA | $ | 62,852 | $ | 25,718 | $ | (1,519 | ) | $ | 87,051 | |||
(Unaudited) | ||||||||||||
Three Months Ended | ||||||||||||
September 30, 2018 | ||||||||||||
Progressive Leasing | Aaron’s Business | DAMI | Consolidated Total | |||||||||
Net Earnings | $ | 43,720 | ||||||||||
Income Taxes1 | 9,695 | |||||||||||
Earnings (Loss) Before Income Taxes | $ | 40,839 | $ | 15,641 | $ | (3,065 | ) | 53,415 | ||||
Interest Expense | 3,919 | (960 | ) | 776 | 3,735 | |||||||
Depreciation | 1,534 | 13,637 | 161 | 15,332 | ||||||||
Amortization | 5,420 | 3,242 | 145 | 8,807 | ||||||||
EBITDA | $ | 51,712 | $ | 31,560 | $ | (1,983 | ) | $ | 81,289 | |||
Restructuring Expenses | — | 537 | — | 537 | ||||||||
Acquisition Transaction and Transition Costs | — | 646 | — | 646 | ||||||||
Adjusted EBITDA | $ | 51,712 | $ | 32,743 | $ | (1,983 | ) | $ | 82,472 |
(1) | Taxes are calculated on a consolidated basis and are not identifiable by Company segments. |
(Unaudited) | ||||||||||||
Nine Months Ended | ||||||||||||
September 30, 2019 | ||||||||||||
Progressive Leasing | Aaron’s Business | DAMI | Consolidated Total | |||||||||
Net Earnings | $ | 138,529 | ||||||||||
Income Taxes1 | 40,263 | |||||||||||
Earnings (Loss) Before Income Taxes | $ | 167,267 | $ | 18,658 | $ | (7,133 | ) | 178,792 | ||||
Interest Expense | 6,874 | 3,773 | 2,600 | 13,247 | ||||||||
Depreciation | 5,996 | 45,030 | 596 | 51,622 | ||||||||
Amortization | 16,262 | 11,100 | 435 | 27,797 | ||||||||
EBITDA | $ | 196,399 | $ | 78,561 | $ | (3,502 | ) | $ | 271,458 | |||
Restructuring Expenses | — | 37,535 | — | 37,535 | ||||||||
Acquisition Transaction and Transition Costs | — | 635 | — | 635 | ||||||||
Adjusted EBITDA | $ | 196,399 | $ | 116,731 | $ | (3,502 | ) | $ | 309,628 | |||
(Unaudited) | ||||||||||||
Nine Months Ended | ||||||||||||
September 30, 2018 | ||||||||||||
Progressive Leasing | Aaron’s Business | DAMI | Consolidated Total | |||||||||
Net Earnings | $ | 134,467 | ||||||||||
Income Taxes1 | 35,680 | |||||||||||
Earnings (Loss) Before Income Taxes | $ | 120,393 | $ | 56,417 | $ | (6,663 | ) | 170,147 | ||||
Interest Expense | 12,543 | (2,993 | ) | 2,318 | 11,868 | |||||||
Depreciation | 4,533 | 39,792 | 660 | 44,985 | ||||||||
Amortization | 16,262 | 7,048 | 435 | 23,745 | ||||||||
EBITDA | $ | 153,731 | $ | 100,264 | $ | (3,250 | ) | $ | 250,745 | |||
Restructuring Expenses (Reversals), Net | — | 571 | (10 | ) | 561 | |||||||
Impairment of Investment and Related Expenses | — | 21,625 | — | 21,625 | ||||||||
Acquisition Transaction and Transition Costs | — | 646 | — | 646 | ||||||||
Adjusted EBITDA | $ | 153,731 | $ | 123,106 | $ | (3,260 | ) | $ | 273,577 |
(1) | Taxes are calculated on a consolidated basis and are not identifiable by Company segments. |
Fiscal Year 2019 Ranges | ||||
Progressive Leasing | Aaron’s Business | DAMI | Consolidated Total | |
Estimated Net Earnings | $201,800 - $210,800 | |||
Taxes1 | 62,000 - 65,000 | |||
Projected Earnings Before Taxes | $237,000 - $242,000 | $37,300 - $42,300 | $(10,500) - $(8,500) | 263,800 - 275,800 |
Interest Expense | 9,000 | 5,300 | 3,500 | 17,800 |
Depreciation | 8,000 | 60,200 | 1,000 | 69,200 |
Amortization | 21,000 | 14,000 | 1,000 | 36,000 |
Projected EBITDA | 275,000 - 280,000 | 116,800 - 121,800 | (5,000) - (3,000) | 386,800 - 398,800 |
Projected Other Adjustments, Net2 | — | 38,200 | — | 38,200 |
Projected Adjusted EBITDA | $275,000 - $280,000 | $155,000 - $160,000 | $(5,000) - $(3,000) | $425,000 - $437,000 |
(1) | Taxes are calculated on a consolidated basis and are not identifiable by Company divisions. |
Fiscal Year 2019 Ranges | ||||
Progressive Leasing | Aaron’s Business | DAMI | Consolidated Total | |
Estimated Net Earnings | $208,200 - $224,700 | |||
Taxes1 | 63,500 - 69,000 | |||
Projected Earnings Before Taxes | $237,000 - $247,000 | $45,200 - $55,200 | $(10,500) - $(8,500) | 271,700 - 293,700 |
Interest Expense | 9,000 | 6,000 | 3,500 | 18,500 |
Depreciation | 8,000 | 62,500 | 1,000 | 71,500 |
Amortization | 21,000 | 14,000 | 1,000 | 36,000 |
Projected EBITDA | 275,000 - 285,000 | 127,700 - 137,700 | (5,000) - (3,000) | 397,700 - 419,700 |
Projected Other Adjustments, Net2 | — | 32,300 | — | 32,300 |
Projected Adjusted EBITDA | $275,000 - $285,000 | $160,000 - $170,000 | $(5,000) - $(3,000) | $430,000 - $452,000 |
(1) | Taxes are calculated on a consolidated basis and are not identifiable by Company divisions. |
Fiscal Year 2019 Ranges | ||||
Progressive Leasing | Aaron’s Business | DAMI | Consolidated Total | |
Estimated Net Earnings | $210,300 - $231,000 | |||
Taxes1 | 64,700 - 71,000 | |||
Projected Earnings Before Taxes | $216,500 - $231,500 | $68,000 - $78,000 | $(9,500) - $(7,500) | 275,000 - 302,000 |
Interest Expense | 13,500 | 2,500 | 3,500 | 19,500 |
Depreciation | 8,000 | 66,000 | 1,500 | 75,000 |
Amortization | 22,000 | 10,000 | — | 32,000 |
Projected EBITDA | 260,000 - 275,000 | 146,500 - 156,500 | (5,000) - (3,000) | 401,500 - 428,500 |
Projected Other Adjustments, Net2 | — | 13,500 | — | 13,500 |
Projected Adjusted EBITDA | $260,000 - $275,000 | $160,000 - $170,000 | $(5,000) - $(3,000) | $415,000 - $442,000 |
(1) | Taxes are calculated on a consolidated basis and are not identifiable by Company divisions. |
(2) | Projected Other Adjustments include the non-GAAP charges related to the Aaron's Business restructuring. |
Fiscal Year 2019 Range | ||||||
Low | High | |||||
Projected Earnings Per Share Assuming Dilution | $ | 2.95 | $ | 3.05 | ||
Add Projected Intangible Amortization Expense1 | 0.38 | 0.38 | ||||
Add Sum of Other Adjustments2 | 0.42 | 0.42 | ||||
Projected Non-GAAP Earnings Per Share Assuming Dilution | $ | 3.75 | $ | 3.85 |
(1) | Includes projected amortization expense related to the acquisition of Progressive Leasing and the franchisee acquisitions. |
(2) | Includes the projected non-GAAP charges related to the Aaron's Business restructuring. |
Fiscal Year 2019 Range | ||||||
Low | High | |||||
Projected Earnings Per Share Assuming Dilution | $ | 3.11 | $ | 3.26 | ||
Add Projected Intangible Amortization Expense1 | 0.38 | 0.38 | ||||
Add Sum of Other Adjustments2 | 0.36 | 0.36 | ||||
Projected Non-GAAP Earnings Per Share Assuming Dilution | $ | 3.85 | $ | 4.00 |
(1) | Includes projected amortization expense related to the acquisition of Progressive Leasing and the franchisee acquisitions. |
(2) | Includes the projected non-GAAP charges related to the Aaron's Business restructuring. |
Fiscal Year 2019 Range | ||||||
Low | High | |||||
Projected Earnings Per Share Assuming Dilution | $ | 3.15 | $ | 3.35 | ||
Add Projected Intangible Amortization Expense1 | 0.35 | 0.35 | ||||
Add Sum of Other Adjustments2 | 0.15 | 0.15 | ||||
Projected Non-GAAP Earnings Per Share Assuming Dilution | $ | 3.65 | $ | 3.85 |
(1) | Includes projected amortization expense related to the acquisition of Progressive Leasing and the franchisee acquisitions. |
(2) | Includes the projected non-GAAP charges related to the Aaron's Business restructuring. |
Document and Entity Information Document |
Nov. 04, 2019 |
---|---|
Cover page. | |
Document Type | 8-K |
Document Period End Date | Nov. 04, 2019 |
Entity Registrant Name | AARON’S, INC. |
Entity Central Index Key | 0000706688 |
Amendment Flag | false |
Entity Incorporation, State or Country Code | GA |
Entity File Number | 1-13941 |
Entity Tax Identification Number | 58-0687630 |
Entity Address, Address Line One | 400 Galleria Parkway SE |
Entity Address, City or Town | Atlanta |
Entity Address, State or Province | GA |
Entity Address, Postal Zip Code | 30339-3182 |
City Area Code | 678 |
Local Phone Number | 402-3000 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, $0.50 Par Value |
Trading Symbol | AAN |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
Entity Address, Address Line Two | Suite 300 |
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