ATLANTA, April 29, 2016
/PRNewswire/ --
- Total Revenues $854.4 Million,
Up 4%
- Net Earnings $49.7 Million;
Diluted EPS $.68
- Non-GAAP Diluted EPS $.71
- Progressive Revenues Up 22%
- Progressive EBITDA Up 23%
Aaron's, Inc. (NYSE: AAN), a leader in the sales and lease
ownership and specialty retailing of furniture, consumer
electronics, home appliances and accessories, today announced
financial results for the three months ended March 31,
2016.
For the first quarter of 2016, revenues increased 4.0% to
$854.4 million compared with
$821.8 million for the first quarter
of 2015. Net earnings increased .9% to $49.7
million compared with $49.2
million in the prior year period. Diluted earnings per share
were $.68 in both periods. Non-GAAP
diluted EPS were $.71 compared with
$.73 last year.
"First quarter results met our expectations," said John Robinson, President and Chief Executive
Officer of Aaron's. "We delivered on the Company's goals for
revenues, Adjusted EBITDA and non-GAAP earnings per share. At the
same time, we made important progress to grow Progressive,
strengthen our balance sheet, sharpen our focus at the core
business, and expand our customer base."
"Progressive had an outstanding quarter with a mid-teens
increase in active doors and a 23% gain in EBITDA," continued Mr.
Robinson. "We're executing well as we gain share in a large
addressable market, with investments to grow the segment being
offset by positive trends in gross margin, merchandise write-offs
and bad debt expense."
"Our core business was mixed this quarter," continued Mr.
Robinson. "Comps improved year-over-year and on a sequential basis,
and same-store customer counts increased versus last year.
However, deliveries were softer than expected during the quarter,
and lease activity was concentrated around promotional items. Given
the leadership changes we made in the quarter, I'm optimistic these
trends can improve."
During the quarter, the Company entered into an agreement to
sell the assets of its HomeSmart division. The transaction is
scheduled to close in the second quarter of 2016, subject to
customary closing conditions.
"We ended the quarter with a strong balance sheet with net debt
to capitalization of approximately 21%. Our goal is to increase
revenues and invest in future growth while maintaining discipline
around profitability. The sale of HomeSmart will enhance our
focus on assets with the highest potential for return, and
we'll seek additional ways to optimize cash flow and drive
shareholder value as we advance our strategies," Mr. Robinson
concluded.
Financial Summary
Net earnings increased to $49.7
million compared with $49.2
million in the prior year period. Diluted earnings per share
were $.68 in both periods. On a
non-GAAP basis, net earnings for the first quarter of 2016 were
$52.1 million compared with
$53.4 million for the same period in
2015, and diluted earnings per share were $.71 compared to $.73 in 2015. The results for the first quarter
of 2016 include the effects of a $2.9
million loss before income taxes at our Dent-A-Med ("DAMI")
segment, which was acquired in October
2015. The effective tax rate for the quarter was 37.7%
compared to 36.7% in the prior year.
Non-GAAP net earnings and diluted earnings per share in 2016
exclude the effects of amortization expense resulting from the 2014
acquisition of Progressive, a gain on the sale of the Company's
headquarters building, charges primarily related to the retirement
of our former CFO, and an impairment charge resulting from the
expected HomeSmart disposition. In 2015, non-GAAP results exclude
the effects of Progressive amortization. See "Use of Non-GAAP
Financial Information" and the related non-GAAP reconciliation
accompanying this press release.
Adjusted EBITDA for the Company, which excludes the
aforementioned special charges and adjustments, was $104.0 million for the three months ended
March 31, 2016 compared with $103.7
million for the same period in 2015. Adjusted EBITDA is a
non-GAAP measure that is calculated as the Company's earnings
before interest, depreciation on property, plant and equipment,
amortization of intangible assets, income taxes and special charges
and adjustments.
Core Results
For the first quarter of 2016, overall revenues for the core
business decreased 4.8% to $543.0
million from $570.2 million in
the first quarter of 2015. The core business is our
traditional lease-to-own store-based business, and represents all
of the operations of Aaron's, Inc., excluding Progressive and
DAMI.
Within the core business, revenues of the Aaron's Sales &
Lease Ownership division decreased 5.2% in the first quarter of
2016 to $523.7 million compared with
$552.5 million in revenues in the
first quarter of 2015. This decline was driven by an $11.0 million decrease in store revenues and a
$17.3 million decline in non-retail
sales.
Revenues for the Company's HomeSmart division were $17.8 million in the first quarter of 2016, a
6.4% increase from $16.8 million in
the first quarter of 2015. As a result of the contemplated sale of
the HomeSmart assets, during the quarter the Company recognized an
impairment charge of $4.6
million.
Adjusted EBITDA for the core business in the first quarter of
2016 was $70.9 million compared with
$75.4 million a year ago. As a
percentage of revenues, Adjusted EBITDA was 13.1% compared with
13.2% for the same period in 2015. Write offs for damaged, lost or
unsaleable merchandise were 3.5% of revenues compared to 3.0% in
the year ago period.
Same store revenues (revenues earned in Company-operated stores
open for the entirety of both quarters) decreased 2.1% during the
first quarter of 2016 compared with the first quarter of 2015, and
customer count on a same store basis was up .4%. Company-operated
Aaron's stores had 1,041,000 customers at March 31, 2016, a .5% decline from the end of the
first quarter a year ago.
Progressive Results
Progressive's revenues in the first quarter of 2016 increased
21.9% to $306.7 million from
$251.6 million in the first quarter
of 2015. Invoice volume per active door declined 2.7% as the
segment experienced a 14.0% increase in the number of active doors
in the quarter to 13,521 up from 11,861 last year. Progressive had
507,000 customers at March 31, 2016, a 12% increase from the
first quarter a year ago.
EBITDA for the first quarter of 2016 was $34.8 million compared with $28.3 million in the first quarter of 2015. As a
percentage of revenues, EBITDA was 11.3% in both periods. Write
offs for damaged, lost or unsaleable merchandise were 6.2% of
revenues in the first quarter compared to 6.4% in the same period
of 2015.
DAMI Results
Revenues for DAMI, which was acquired by Progressive on
October 15, 2015, were $4.8 million in the first quarter of 2016. DAMI's
loss before income taxes was $2.9
million and its pre-tax, pre-provision loss was $1.2 million in the same period, in line with our
expectations. Pre-tax, pre-provision loss is a non-GAAP measure
that represents loss before income taxes adjusted so that loan
charge-offs and recoveries are recognized in earnings as they occur
by excluding the effect on earnings of changes to management's
provision for estimated future loan losses. See "Use of Non-GAAP
Financial Information" and the related non-GAAP reconciliation
accompanying this press release for more information regarding the
calculation of pre-tax, pre-provision loss.
Significant Components of Revenue
Consolidated lease revenues and fees for the first quarter of
2016 increased 6.7% over the prior year period. In addition,
franchise royalties and fees decreased 4.2% in the first quarter of
2016 compared to the same period a year ago. The decrease in the
Company's franchise royalties and fees are the result of a decrease
in revenues of the Company's franchisees, which collectively had
revenues of $249.8 million during the
first quarter of 2016, a decrease of 4.2% from the same quarter
last year. Same store revenues for franchised stores were down .6%
and same store customer counts were up 3% for the first quarter of
2016 compared with the same quarter last year. Franchised stores
had 562,000 customers at the end of the first quarter of 2016, a
2.4% decline from a year ago (revenues and customers of franchisees
are not revenues and customers of Aaron's, Inc.). Non-retail sales,
which are primarily sales of merchandise to Aaron's Sales &
Lease Ownership franchisees, decreased 17.4% for the first quarter
compared with the prior-year period.
Store Count
During the first quarter of 2016, four franchised Aaron's Sales
& Lease Ownership stores were consolidated or closed. One
franchised Aaron's Sales & Lease Ownership store was sold to a
third party. There were no openings or closings of Company-operated
Aaron's Sales & Lease Ownership stores.
At March 31, 2016, the Company had 1,223 Company-operated
Aaron's Sales & Lease Ownership stores, 727 franchised Aaron's
Sales & Lease Ownership stores, 82 Company-operated HomeSmart
stores, and two franchised HomeSmart stores. The total number of
stores open at March 31, 2016 was 2,034. The Company expects
to close on its sale of the 82 Company-operated HomeSmart stores
during the second quarter.
2016 Outlook
The guidance the Company issued on February 18, 2016 remains unchanged.
Conference Call and Webcast
Aaron's will hold a conference call to discuss its quarterly
financial results on Friday, April 29, 2016, at 8:30 a.m. Eastern Time. The public is invited to
listen to the conference call by webcast accessible through the
Company's Investor Relations website, investor.aarons.com. The
webcast will be archived for playback at that same site.
About Aaron's, Inc.
Headquartered in Atlanta,
Aaron's, Inc. (NYSE: AAN) is a leader in the sales and lease
ownership and specialty retailing of furniture, consumer
electronics, home appliances and accessories, and currently has
more than 2,000 Company-operated and franchised stores in 47 states
and Canada. Progressive Leasing, a leading virtual
lease-to-own company, provides lease-purchase solutions through
approximately 17,000 retail locations in 46 states. Dent-A-Med,
Inc. (DAMI), d/b/a the HELPcard®, provides a variety of second-look
credit products that are originated through a federally insured
bank. Aaron's was founded in 1955, has been publicly traded
since 1982 and owns the Aarons.com, ShopHomeSmart.com,
ProgLeasing.com, and HELPcard.com brands. For more information,
visit www.aarons.com.
"Safe Harbor" Statement under the Private Securities
Litigation Reform Act of 1995: Statements in this news release
regarding Aaron's, Inc.'s business that are not historical facts
are "forward-looking statements" that involve risks and
uncertainties which could cause actual results to differ materially
from those contained in the forward-looking statements. Such
forward-looking statements generally can be identified by the use
of forward-looking terminology, such as "may," "expect,"
"forecast," "guidance," "intend," "believe," "could," "project,"
"estimate," "anticipate," "should" and similar terminology. These
risks and uncertainties include factors such as changes in general
economic conditions, competition, pricing, legal and regulatory
proceedings, customer privacy, information security, customer
demand, the integration of the Progressive and Dent-A-Med
acquisitions, the successful completion of the HomeSmart
divestiture, the execution and results of our new strategy, risks
related to Progressive's "virtual" lease-to-own business with which
the Company may be unfamiliar, and the other risks and
uncertainties discussed under "Risk Factors" in the Company's
Annual Report on Form 10-K for the fiscal year ended December 31, 2015. Statements in this release
that are "forward-looking" include without limitation: Aaron's
projected results (including Progressive's results) for future
periods, statements on cash flow, cost and leverage reductions and
strategic initiatives; and statements regarding the HomeSmart
divestiture. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. Except as required by law, the Company undertakes no
obligation to update these forward-looking statements to reflect
subsequent events or circumstances after the date of this press
release.
Aaron's, Inc. and
Subsidiaries
Consolidated
Statements of Earnings
(In thousands,
except per share amounts)
|
|
|
|
(Unaudited)
Three Months Ended
|
|
|
March 31,
|
|
|
2016
|
2015
|
Revenues:
|
|
|
|
Lease Revenues and
Fees
|
|
$
|
741,611
|
|
$
|
695,282
|
|
Retail
Sales
|
|
10,955
|
|
11,994
|
|
Non-Retail
Sales
|
|
79,305
|
|
96,037
|
|
Franchise Royalties
and Fees
|
|
16,295
|
|
17,004
|
|
Interest and Fees on
Loans Receivable
|
|
4,763
|
|
—
|
|
Other
|
|
1,498
|
|
1,497
|
|
Total
|
|
854,427
|
|
821,814
|
|
|
|
|
|
Costs and
Expenses:
|
|
|
|
Depreciation of Lease
Merchandise
|
|
348,302
|
|
315,986
|
|
Retail Cost of
Sales
|
|
7,065
|
|
7,704
|
|
Non-Retail Cost of
Sales
|
|
71,385
|
|
86,852
|
|
Operating
Expenses
|
|
348,424
|
|
327,920
|
|
Other Operating
Income, Net
|
|
(6,729)
|
|
(1,460)
|
|
Total
|
|
768,447
|
|
737,002
|
|
|
|
|
|
Operating
Profit
|
|
85,980
|
|
84,812
|
|
Interest
Income
|
|
421
|
|
439
|
|
Interest
Expense
|
|
(6,312)
|
|
(5,969)
|
|
Other Non-Operating
Expense, Net
|
|
(361)
|
|
(1,452)
|
|
Earnings Before
Income Taxes
|
|
79,728
|
|
77,830
|
|
|
|
|
|
Income
Taxes
|
|
30,041
|
|
28,587
|
|
|
|
|
|
Net
Earnings
|
|
$
|
49,687
|
|
$
|
49,243
|
|
|
|
|
|
Earnings Per
Share
|
|
$
|
.68
|
|
$
|
.68
|
|
Earnings Per Share
Assuming Dilution
|
|
$
|
.68
|
|
$
|
.68
|
|
|
|
|
|
Weighted Average
Shares Outstanding
|
|
72,634
|
|
72,517
|
|
Weighted Average
Shares Outstanding Assuming Dilution
|
|
73,217
|
|
72,855
|
|
Selected Balance
Sheet Data
(In
thousands)
|
|
|
|
(Unaudited)
|
|
|
March 31,
2016
|
|
December 31,
20151
|
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
|
118,905
|
|
|
$
|
14,942
|
|
Investments
|
|
22,108
|
|
|
22,226
|
|
Accounts Receivable,
Net
|
|
85,203
|
|
|
113,439
|
|
Loans Receivable,
Net
|
|
83,198
|
|
|
85,795
|
|
Lease Merchandise,
Net
|
|
1,102,233
|
|
|
1,138,938
|
|
Property, Plant and
Equipment, Net
|
|
220,508
|
|
|
225,836
|
|
Other Assets,
Net
|
|
916,612
|
|
|
1,053,995
|
|
|
|
|
|
|
Total
Assets
|
|
2,548,767
|
|
|
2,655,171
|
|
|
|
|
|
|
Debt
|
|
518,041
|
|
|
606,746
|
|
Total
Liabilities
|
|
1,130,845
|
|
|
1,288,553
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
$
|
1,417,922
|
|
|
$
|
1,366,618
|
|
|
|
|
|
|
1 $3.7 million of
capitalized deferred debt issuance costs were reclassified from
Other Assets, Net to be a deduction from Debt as of December 31, 2015 to conform with the current
period presentation upon adoption of ASU 2015-03, Simplifying
the Presentation of Debt Issuance Costs in the first quarter of
2016.
Selected Cash Flow
Data
(In
thousands)
|
|
|
|
(Unaudited)
Three Months Ended
|
|
|
March 31,
|
|
|
2016
|
|
2015
|
|
|
|
|
|
Cash Provided by
Operating Activities
|
|
$
|
194,541
|
|
|
$
|
224,969
|
|
Cash Provided/(Used)
by Investing Activities
|
|
891
|
|
|
(12,354)
|
|
Cash (Used)/Provided
by Financing Activities
|
|
(91,469)
|
|
|
(86,327)
|
|
|
|
|
|
|
Increase in Cash and
Cash Equivalents
|
|
103,963
|
|
|
126,288
|
|
Cash and Cash
Equivalents at Beginning of Period
|
|
14,942
|
|
|
3,549
|
|
Cash and Cash
Equivalents at End of Period
|
|
$
|
118,905
|
|
|
$
|
129,837
|
|
Aaron's, Inc. and Subsidiaries
Revenues by
Component & Segment
(In
thousands)
(Unaudited)
|
|
THREE MONTHS
ENDED
|
March 31,
2016
|
|
Sales and
Lease
Ownership
|
Progressive
|
HomeSmart
|
DAMI
|
Franchise
|
Manufacturing
|
Other
|
Consolidated
Total
|
Lease Revenues and
Fees
|
$
|
417,556
|
|
$
|
306,665
|
|
$
|
17,266
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
124
|
|
$
|
741,611
|
|
Retail
Sales
|
10,373
|
|
—
|
|
582
|
|
—
|
|
—
|
|
—
|
|
—
|
|
10,955
|
|
Non-Retail
Sales
|
78,184
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,121
|
|
—
|
|
79,305
|
|
Franchise Royalties
and Fees
|
—
|
|
—
|
|
—
|
|
—
|
|
16,295
|
|
—
|
|
—
|
|
16,295
|
|
Manufacturing
Revenue
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
23,802
|
|
(23,802)
|
|
—
|
|
Interest and Fees on
Loans Receivable
|
—
|
|
—
|
|
—
|
|
4,763
|
|
—
|
|
—
|
|
—
|
|
4,763
|
|
Other
|
1,338
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
160
|
|
1,498
|
|
|
$
|
507,451
|
|
$
|
306,665
|
|
$
|
17,848
|
|
$
|
4,763
|
|
$
|
16,295
|
|
$
|
24,923
|
|
$
|
(23,518)
|
|
$
|
854,427
|
|
THREE MONTHS
ENDED
|
March 31,
2015
|
|
Sales and
Lease Ownership
|
Progressive
|
HomeSmart
|
DAMI
|
Franchise
|
Manufacturing
|
Other
|
Consolidated
Total
|
Lease Revenues and
Fees
|
$
|
427,491
|
|
$
|
251,619
|
|
$
|
16,172
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
695,282
|
|
Retail
Sales
|
11,391
|
|
—
|
|
603
|
|
—
|
|
—
|
|
—
|
|
—
|
|
11,994
|
|
Non-Retail
Sales
|
95,520
|
|
—
|
|
—
|
|
—
|
|
—
|
|
517
|
|
—
|
|
96,037
|
|
Franchise Royalties
and Fees
|
—
|
|
—
|
|
—
|
|
—
|
|
17,004
|
|
—
|
|
—
|
|
17,004
|
|
Manufacturing
Revenue
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
28,289
|
|
(28,289)
|
|
—
|
|
Interest and Fees on
Loans Receivable
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Other
|
1,129
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
368
|
|
1,497
|
|
|
$
|
535,531
|
|
$
|
251,619
|
|
$
|
16,775
|
|
$
|
—
|
|
$
|
17,004
|
|
$
|
28,806
|
|
$
|
(27,921)
|
|
$
|
821,814
|
|
Use of Non-GAAP Financial Information:
Non-GAAP net earnings and non-GAAP diluted earnings per share
are supplemental measures of our performance that are not
calculated in accordance with generally accepted accounting
principles in the United States
("GAAP"). Non-GAAP net earnings and non-GAAP diluted earnings per
share each exclude $6.6 million in
Progressive-related intangible amortization expense, an
$11.1 million gain from the sale of
the Company's headquarters building, $3.7
million in retirement and severance charges and a
$4.6 million impairment charge
related to the expected HomeSmart asset sale, as well as the
exclusion of $6.6 million in
Progressive-related intangible amortization expense in 2015.
Management believes that presenting non-GAAP net earnings and
non-GAAP diluted earnings per share is useful because it provides
investors with supplemental information to understand the
performance of the Company without the impact of special charges
that do not arise from our day-to-day operations and that can
affect the comparability of our results between periods.
This press release also presents EBITDA and Adjusted EBITDA,
which are supplemental measures of our performance that are not
calculated in accordance with GAAP. The EBITDA and Adjusted
EBITDA figures presented in this press release are calculated as
the Company's earnings before interest, depreciation on property,
plant and equipment, amortization of intangible assets and income
taxes. Adjusted EBITDA also excludes the special charges described
in the calculation of Non-GAAP net earnings above. Management
believes that presenting EBITDA and Adjusted EBITDA is useful
because it gives investors supplemental information to understand
how management evaluates and compares the Company's underlying
operating performance, including the performance of the Company's
segments, from period to period.
Finally, this press release presents pre-tax, pre-provision loss
for DAMI, which is also a supplemental measure not calculated in
accordance with GAAP. Management believes this measure is useful
because it gives investors an additional, supplemental metric to
assess DAMI's underlying operational performance for the period,
particularly for periods in which we expect growth in DAMI's loan
portfolio and corresponding growth in our provisioning for future
loan losses.
Non-GAAP financial measures, however, should not be used as a
substitute for, or considered superior to, measures of financial
performance prepared in accordance with GAAP, such as the Company's
GAAP basis net earnings and diluted earnings per share and the GAAP
operating income of the Company's segments, which are also
presented in the press release. Further, we caution investors
that amounts presented in accordance with our definitions of
non-GAAP net earnings, non-GAAP diluted earnings per share, EBITDA,
Adjusted EBITDA and pre-tax, pre-provision loss may not be
comparable to similar measures disclosed by our competitors,
because not all companies and analysts calculate these measures in
the same manner.
Reconciliation of
Net Earnings and Earnings Per Share Assuming Dilution to
Non-GAAP
Net Earnings and
Earnings Per Share Assuming Dilution
(In thousands,
except earnings per share)
|
|
|
(Unaudited)
Three Months Ended
March 31,
|
|
2016
|
2015
|
Net
Earnings
|
$
|
49,687
|
|
$
|
49,243
|
|
Add
Progressive-Related Intangible Amortization Expense
(1)(2)
|
4,105
|
|
4,168
|
|
Less Gain on Sale of
Building (3)
|
(6,899)
|
|
—
|
|
Add Retirement and
Severance Charges (4)
|
2,295
|
|
—
|
|
Add HomeSmart
Impairment (5)
|
2,881
|
|
—
|
|
Non-GAAP Net
Earnings
|
$
|
52,069
|
|
$
|
53,411
|
|
|
|
|
Earnings Per Share
Assuming Dilution
|
$
|
.68
|
|
$
|
.68
|
|
Add
Progressive-Related Intangible Amortization Expense
|
.06
|
|
.06
|
|
Less Gain on Sale of
Building (3)
|
(.09)
|
|
—
|
|
Add Retirement and
Severance Charges (4)
|
.03
|
|
—
|
|
Add HomeSmart
Impairment (5)
|
.04
|
|
—
|
|
Non-GAAP Earnings Per
Share Assuming Dilution (6)
|
$
|
.71
|
|
$
|
.73
|
|
Weighted Average
Shares Outstanding Assuming Dilution
|
73,217
|
|
72,855
|
|
(1)
|
Net of taxes of
$2,482 for the three months ended March 31, 2016 calculated
using the effective tax rate for the three months ended
March 31, 2016.
|
(2)
|
Net of taxes of
$2,420 for the three months ended March 31, 2015 calculated
using the effective tax rate for the three months ended
March 31, 2015.
|
(3)
|
Net of taxes of
$(4,172) for the three months ended March 31, 2016 calculated
using the effective tax rate for the three months ended
March 31, 2016.
|
(4)
|
Net of taxes of
$1,388 for the three months ended March 31, 2016 calculated
using the effective tax rate for the three months ended
March 31, 2016.
|
(5)
|
Net of taxes of
$1,742 for the three months ended March 31, 2016 calculated
using the effective tax rate for the three months ended
March 31, 2016.
|
(6)
|
In some cases the sum
of individual EPS amounts may not equal total EPS
calculations.
|
DAMI Pre-tax,
Pre-provision Loss
(In
thousands)
|
|
|
(Unaudited)
Three Months Ended
|
|
March 31,
|
|
2016
|
2015
|
Loss Before Income
Taxes
|
$
|
(2,882)
|
|
$
|
—
|
|
Add: Adjustment to
Increase Allowance for Loan Losses During Period
|
1,652
|
|
—
|
|
Pre-tax,
Pre-provision Loss
|
$
|
(1,230)
|
|
$
|
—
|
|
Aaron's, Inc. and
Subsidiaries
Non-GAAP Financial
Information
Three Months
Segment EBITDA
(In
thousands)
(Unaudited)
|
|
Three Months Ended
March 31, 2016
|
|
Sales and
Lease Ownership
|
Progressive
|
HomeSmart
|
DAMI
|
Franchise
|
Manufacturing
|
Other1
|
Consolidated
Total
|
Earnings
(Loss)
Before Income
Taxes
|
$
|
56,578
|
|
$
|
21,914
|
|
$
|
(2,959)
|
|
$
|
(2,882)
|
|
$
|
13,119
|
|
$
|
868
|
|
$
|
(6,910)
|
|
$
|
79,728
|
|
Interest Expense
(Income)
|
1,927
|
|
5,202
|
|
221
|
|
997
|
|
—
|
|
—
|
|
(2,035)
|
|
6,312
|
|
Depreciation
|
7,175
|
|
1,075
|
|
612
|
|
102
|
|
313
|
|
342
|
|
3,971
|
|
13,590
|
|
Amortization
|
420
|
|
6,587
|
|
11
|
|
135
|
|
—
|
|
—
|
|
—
|
|
7,153
|
|
EBITDA
|
$
|
66,100
|
|
$
|
34,778
|
|
$
|
(2,115)
|
|
$
|
(1,648)
|
|
$
|
13,432
|
|
$
|
1,210
|
|
$
|
(4,974)
|
|
$
|
106,783
|
|
Gain on Sale of
Building
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
(11,071)
|
|
$
|
(11,071)
|
|
Retirement
Charges
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3,683
|
|
3,683
|
|
HomeSmart
Impairment
|
—
|
|
—
|
|
4,623
|
|
—
|
|
—
|
|
—
|
|
—
|
|
4,623
|
|
Adjusted
EBITDA
|
$
|
66,100
|
|
$
|
34,778
|
|
$
|
2,508
|
|
$
|
(1,648)
|
|
$
|
13,432
|
|
$
|
1,210
|
|
$
|
(12,362)
|
|
$
|
104,018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2015
|
|
Sales and
Lease Ownership
|
Progressive
|
HomeSmart
|
DAMI
|
Franchise
|
Manufacturing
|
Other1
|
Consolidated
Total
|
Earnings
(Loss)
Before Income
Taxes
|
$
|
59,041
|
|
$
|
15,830
|
|
$
|
526
|
|
$
|
—
|
|
$
|
13,898
|
|
$
|
1,282
|
|
$
|
(12,747)
|
|
$
|
77,830
|
|
Interest Expense
(Income)
|
1,932
|
|
5,469
|
|
240
|
|
—
|
|
—
|
|
10
|
|
(1,682)
|
|
5,969
|
|
Depreciation
|
7,709
|
|
454
|
|
628
|
|
—
|
|
366
|
|
382
|
|
3,443
|
|
12,982
|
|
Amortization
|
368
|
|
6,588
|
|
6
|
|
—
|
|
—
|
|
—
|
|
—
|
|
6,962
|
|
EBITDA
|
$
|
69,050
|
|
$
|
28,341
|
|
$
|
1,400
|
|
$
|
—
|
|
$
|
14,264
|
|
$
|
1,674
|
|
$
|
(10,986)
|
|
$
|
103,743
|
|
1Other segment is primarily attributable to (i)
leasing space to unrelated third parties in the corporate
headquarters building and (ii) several minor unrelated activities.
The pre-tax losses or earnings in the Other segment are the net
result of the activity mentioned above, net of the portion of
corporate overhead not allocated to the reportable segments for
management purposes.
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SOURCE Aaron's, Inc.