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The Aaron’s Company, Inc. Released Fourth Quarter and 2023 Results

February 27, 2024  by HFBusiness Staff in Business Strategy, Industry   

Fourth Quarter 2023 Consolidated Results¹:
Revenues were $529.5 million, a decrease of 10.2%
Adjusted EBITDA2,3 was $22.4 million, a decrease of 25.2%
Loss per share was $0.41; Non-GAAP loss per share2 was $0.26
Write-offs were 6.5% in the Aaron's Business, an improvement of 60 basis points

Full Year 2023 Consolidated Results¹:
Revenues were $2.14 billion, a decrease of 4.9%
Adjusted EBITDA2,3 was $136.0 million, a decrease of 23.2%
EPS was $0.09; Non-GAAP EPS2 was $0.81
Write-offs were 5.8% in the Aaron's Business, an improvement of 60 basis points
Adjusted free cash flow was $102.3 million, an increase of 10.5%
Net debt lowered by $79.8 million, a reduction of 37.2%

Key Business Highlights¹:
Aaron's Business recurring revenue written decreased 4.2% in Q4 due to lower average ticket, partially offset by 1.4% growth in lease merchandise deliveries
Aaron's Business e-commerce recurring revenue written increased 60.0% in Q4 driven by new omnichannel customer acquisition program
Aaron's Business lease portfolio size decreased 7.0% in 2023 but is expected to grow mid-single digits by year-end 2024
BrandsMart comparable sales decreased 14.0% in Q4, a sequential improvement of 300 basis points
2023 cost savings exceeded $40 million, with additional cost actions taken in Q1 2024

Full Year 2024 Consolidated Outlook:
Revenues of $2.055 billion to $2.155 billion
Adjusted EBITDA² of $105.0 million to $125.0 million
Non-GAAP Diluted EPS² of $(0.10) to $0.25

The Company will host an earnings conference call Feb 27, 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. A transcript of the webcast will also be available at investor.aarons.com. The Company's Annual Report on Form 10-K for the year ended Dec 31 will be filed by the end of week of Feb 26.

1. Comparisons are to the prior year period unless otherwise noted.
2. Item is a Non-GAAP financial measure. Refer to the "Use of Non-GAAP Financial Information" and supporting reconciliation tables in the attached supplement.
3. Starting in 2023, adjusted EBITDA excludes stock-based compensation expense. All prior period adjusted EBITDA metrics included herein have been adjusted to exclude stock compensation expense for comparability purposes.