The Aaron's Company, Inc. Reports Fourth Quarter & Full Year 2023 Financial Results, and Announces 2024 Outlook

PR Newswire

ATLANTA , Feb. 26, 2024 /PRNewswire/ -- The Aaron's Company, Inc. (NYSE: AAN) today released its fourth quarter and full year 2023 financial results. Highlights of those results and the 2024 outlook are included below, in the attached supplement, and at investor.aarons.com .

Fourth Quarter 2023 Consolidated Results ¹ :

Revenues were $529.5 million , a decrease of 10.2%
Adjusted EBITDA ^2,3 was $22.4 million , a decrease of 25.2%
Loss per share was $0.41 ; Non-GAAP loss per share ² was $0.26
Write-offs were 6.5% in the Aaron's Business, an improvement of 60 basis points

Full Year 2023 Consolidated Results ¹ :

Revenues were $2.14 billion , a decrease of 4.9%
Adjusted EBITDA ^2,3 was $136.0 million , a decrease of 23.2%
EPS was $0.09 ; Non-GAAP EPS ² 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 Highlights ¹ :

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 EBITDA ² of $105.0 million to $125.0 million
Non-GAAP Diluted EPS ² of $(0.10) to $0.25

The Company will host an earnings conference call tomorrow, February 27, 2024, 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/751317386 . 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 December 31, 2023 will be filed by the end of week of February 26, 2024 .


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.

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 1,240 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 11 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 .