Aaron’s, Inc. Raises Third Quarter Revenues and Earnings Outlook

Aaron’s, Inc. (“Aaron’s” or the “Company”), a leading omnichannel provider of lease-purchase solutions, today provided a business update for the third quarter of 2020.

“While there remains uncertainty related to the pandemic, including unemployment, government stimulus, and global supply chain challenges, with two months behind us, we are in a position to update the market on our expectations for the third quarter,” said John Robinson, Aaron’s, Inc. President and Chief Executive Officer. “Our businesses are performing very well in the quarter, with strong customer payment activity and lease portfolio performance driving better than expected financial results. At the same time, new lease originations continue to face some headwinds due in part to our more conservative approach to lease decisioning and pandemic-related issues, including supply chain disruptions. Based on our results to date, we are raising our third quarter outlook.”

Updated Third Quarter Outlook

Consolidated Results

– The Company expects revenues in a range of $1.00 billion to $1.02 billion, adjusted EBITDA between $140 million and $150 million, and non-GAAP earnings per share between $1.40 and $1.50. These estimates assume no reversal of incremental COVID-related reserves established in the first quarter of 2020.

Progressive Leasing

– Progressive expects revenues in a range of $575 million to $585 million and EBITDA between $100 million and $105 million. These estimates assume no reversal of incremental COVID-related reserves established in the first quarter of 2020.

– Year-over-year invoice growth for the third quarter is expected to be in the low-to-mid single digit percentage range, sequentially higher than the second quarter of 2020.

– The Company believes Progressive has adequately reserved for the future impact of COVID-related write-offs and, at this time, does not anticipate incremental COVID-related charges in the third quarter. Write-offs for the third quarter are expected to be between 1.5% and 2.5%.

The Aaron’s Business

– The Aaron’s Business expects revenues in a range of $415 million to $425 million and adjusted EBITDA between $43 million and $48 million. These estimates assume no reversal of incremental COVID-related reserves established in the first quarter of 2020.

– The Company expects same store revenue growth of 4% to 6%.

– The Company believes the Aaron’s Business has adequately reserved for the future impact of COVID-related write-offs and, at this time, does not anticipate incremental COVID-related charges in the third quarter. Write-offs for the third quarter are expected to be between 3% and 4%.

For the full release, click here.

About Aaron’s, Inc.

Headquartered in Atlanta, Aaron’s, Inc. (NYSE: AAN), is a leading omnichannel provider of lease-purchase solutions. Progressive Leasing provides lease-purchase solutions through approximately 20,000 retail partner locations in 46 states and the District of Columbia, including e-commerce merchants. The Aaron’s Business engages in the sales and lease ownership and specialty retailing of furniture, home appliances, consumer electronics and accessories through its approximately 1,400 Company-operated and franchised stores in 47 states, Puerto Rico and Canada, as well as its e-commerce platform, Aarons.com. Vive Financial provides a variety of second-look credit products that are originated through federally insured banks. For more information, visit investor.aarons.com, Aarons.com, ProgLeasing.com, and ViveCard.com.

Contact:

Michael P. Dickerson – Media Contact – mike.dickerson@aarons.com

Source: Aaron’s, Inc.