ATLANTA, Feb. 17, 2017
/PRNewswire/ -- Aaron's, Inc. (NYSE: AAN), a leading omnichannel
provider of lease-purchase solutions, today announced financial
results for the three and twelve months ended December 31,
2016. Aaron's Inc. "Company" conducts its operations through three
primary businesses: 1) Aaron's branded lease-to-own stores and
Aarons.com; 2) the Progressive virtual lease-to-own business; and
3) Dent-A-Med, Inc. "DAMI", our second-look financing business.
Going forward, we will refer to our Aaron's branded lease-to-own
stores and Aarons.com as our "Aaron's Business," which we formerly
referred to as our "Core" business.
"2016 was another strong year for the Company. We served
more customers than in any year in the Company's history and
delivered record financial performance," said John Robinson, Chief Executive Officer. "The
results reflect disciplined execution across an omnichannel
platform that spans retail stores, e-commerce and virtual
lease-to-own."
"Earnings for 2016 were driven by outstanding performance at
Progressive," continued Mr. Robinson. "Favorable lease portfolio
performance generated improved profitability for Progressive, and
strong door growth contributed to a double-digit increase in
invoice volume. We're excited about the prospects for
Progressive as we enter 2017."
"During 2016, we took aggressive action in the Aaron's Business
to strengthen our management team, reduce costs, and increase our
focus on execution in our stores and on Aarons.com," Mr. Robinson
stated. "We continue to innovate our model to drive revenue while
maintaining a disciplined approach to right-sizing our store base
and managing our expenses."
"We significantly strengthened our balance sheet in 2016, which
provides us with the financial flexibility to continue to invest in
our business and return excess capital to shareholders. In 2016, we
returned nearly $42 million to our
shareholders through stock repurchases and cash dividends. The
Company ended the year with $309
million in cash and a net debt to capitalization ratio of
9.6%, with 9.1 million shares remaining on our existing share
repurchase authorization," Mr. Robinson concluded.
Financial Summary
For the fourth quarter of 2016, Company revenues, which includes
the Aaron's, Progressive and DAMI businesses, decreased 3.2% to
$795.0 million compared with
$821.2 million for the fourth quarter
of 2015. Net earnings were $21.6
million compared with $21.7
million in the prior year period. Diluted earnings per share
were $0.30 in both periods. The
effective tax rate for the three months ended December 31,
2016 was 33.0% compared with 36.8% for the prior year period.
On a non-GAAP basis, net earnings for the fourth quarter of 2016
were $36.3 million compared with
$29.8 million for the same period in
2015, and earnings per share assuming dilution were $0.50 in the fourth quarter of 2016 compared to
$0.41 for the same quarter in 2015.
In 2016, non-GAAP net earnings and non-GAAP diluted earnings per
share exclude the effects of amortization expense resulting from
our 2014 acquisition of Progressive, a gain related to the sale of
our HomeSmart business and Aaron's Business restructuring charges.
In 2015, non-GAAP net earnings and non-GAAP diluted earnings per
share exclude the effects of amortization expense resulting from
our 2014 acquisition of Progressive, transaction costs related to
the October 2015 DAMI acquisition and
a loss due to a lease termination on a Company aircraft. 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 charges and adjustments, was $73.8 million for the fourth quarter of 2016,
compared with $67.4 million for the
same period in 2015. See "Use of Non-GAAP Financial Information"
and the related non-GAAP reconciliation accompanying this press
release.
During fiscal year 2016, revenues increased 0.9% to $3.208 billion compared with $3.180 billion for the prior year. Net earnings
were $139.3 million versus
$135.7 million last year. Diluted
earnings per share were $1.91
compared with $1.86 per share a year
ago.
On a non-GAAP basis, net earnings for fiscal year 2016 were
$167.7 million compared with
$157.0 million for 2015 and diluted
earnings per share were $2.30
compared with $2.15 in 2015. Non-GAAP
net earnings and non-GAAP 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, retirement and severance charges, a loss
resulting from the Company's sale of its HomeSmart business and the
Aaron's Business restructuring. In 2015, non-GAAP results exclude
the effects of Progressive amortization, the transaction costs
related to the October 2015 DAMI
acquisition and a loss due to a lease termination on a Company
aircraft. 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 other charges and adjustments, was $342.5 million for the twelve months ended
December 31, 2016 compared with $323.8
million for the same period in 2015. See "Use of Non-GAAP
Financial Information" and the related non-GAAP reconciliation
accompanying this press release.
The Company generated $465.4
million in cash from operations during 2016 and ended the
year with $308.6 million in cash
compared with $14.9 million at the
end of 2015.
Aaron's Business Results
For the fourth quarter of 2016, total revenues for the Aaron's
Business decreased 14.5% to $463.5
million from $542.2 million in
the fourth quarter of 2015. Total revenues for fiscal year 2016
decreased 8.5% to $1.946 billion
compared with $2.127 billion for
fiscal year 2015.
On May 13, 2016, the Company
completed the sale of its HomeSmart business. Revenues for the
HomeSmart business through May 13,
2016 were $25.4 million.
Revenues for the HomeSmart business were $15.8 million and $63.2
million, respectively, for the fourth quarter and twelve
months ended December 31, 2015. Excluding the sale of
HomeSmart, total revenues for the Aaron's Business decreased 12.0%
and 6.9% for the three and twelve months ended December 31,
2016, respectively. Lease revenue and fees for the three and twelve
months ended December 31, 2016 decreased 6% and 3.4%,
respectively, excluding the sale of HomeSmart. Non-retail sales,
which primarily consist of merchandise sales to the Company's
franchisees, decreased 29.5% for the fourth quarter and 20.7% for
the twelve months of 2016, compared with the prior-year
periods.
Earnings before income taxes for the Aaron's Business was
$4.8 million and $123.0 million for the three and twelve months
ended December 31, 2016, respectively, compared with
$26.6 million and $160.6 million for the same periods a year ago.
Adjusted EBITDA in the three and twelve months ended
December 31, 2016 was $32.4
million and $191.2 million,
respectively, compared with $42.9
million and $215.8 million for
the same periods a year ago. As a percentage of revenue, Adjusted
EBITDA was 7.0% and 9.8% for the three and twelve months ended
December 31, 2016, respectively, compared with 7.9% and 10.1%
for the same periods in 2015. Write offs for damaged, lost or
unsaleable merchandise were 4.6% of revenues in the fourth quarter
of 2016, compared to 4.7% for the same period last year.
Same store revenues (revenues earned in Company-operated stores
open for the entirety of both quarters) decreased 5.8% during the
fourth quarter of 2016, compared with the fourth quarter of 2015,
and customer count on a same store basis was down 4.2%.
Company-operated Aaron's stores had 973,000 customers at
December 31, 2016, a 6.0% decrease
from the end of 2015, excluding HomeSmart customers for both
periods.
At December 31, 2016, the Company had 1,165
Company-operated stores and 699 franchised stores. During the
fourth quarter of 2016, 61 Company-operated stores and four
franchised stores were consolidated or closed. Two Company-operated
stores were sold to a third party.
As discussed previously, the Company has undertaken a review of
its store base to identify underperforming stores and right size
its footprint in existing markets. As part of that review, in
addition to closing 61 stores in the fourth quarter of 2016 and
consolidating their customer accounts into other stores, the
Company has identified approximately 70 additional stores to be
closed in the second quarter of 2017. The Company may decide to
close additional stores in future periods.
The decision to close approximately 70 stores in the second
quarter of 2017 resulted in a pre-tax charge of
approximately $2.0 million in the fourth quarter of 2016.
The Company expects to incur an additional pre-tax charge of
approximately $13 million in the second quarter of 2017
with respect to the stores that have been identified for
closure.
Progressive Results
Progressive's revenues in the fourth quarter of 2016 increased
17.3% to $324.0 million from
$276.1 million in the fourth quarter
of 2015. Progressive's revenues for the twelve months ended
December 31, 2016 were $1.238
billion compared with $1.050
billion in the prior year period. Active doors increased 36%
in the fourth quarter of 2016 to approximately 18,000. Invoice
volume per active door declined 13% in the quarter, driven by
strong growth in new doors. Progressive had 598,000 customers at
December 31, 2016, a 17% increase from December 31,
2015.
Earnings before income taxes for Progressive was $29.0 million and $104.7
million for the three and twelve months ended
December 31, 2016, respectively, compared with $9.8 million and $54.5
million for the same periods a year ago. Adjusted EBITDA for
the three and twelve months ended December 31, 2016 was
$41.7 million and $155.5 million, respectively, compared with
$25.5 million and $109.0 million for the same periods of 2015. As a
percentage of revenues, Adjusted EBITDA was 12.9% and 12.6%,
respectively, for the three and twelve months ended
December 31, 2016, compared with 9.2% and 10.4% for the same
periods in 2015. Write offs for damaged, lost or unsaleable
merchandise were 5.9% of revenues in the fourth quarter of 2016,
compared to 7.1% in the same period of 2015.
DAMI Results
Revenues for DAMI were $7.5
million in the fourth quarter of 2016 and $24.1 million for the 2016 fiscal year. DAMI's
loss before income taxes was $1.6
million and $9.3 million for
the three and twelve months ending December 31, 2016,
respectively. Its pre-tax, pre-provision loss was $552,000 in the fourth quarter of 2016 and
$3.6 million for the year.
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. Results for DAMI were
in line with expectations. 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 three and twelve
months ended December 31, 2016 increased 1.5% and 3.6%,
respectively, over the same prior year periods. In addition,
franchise royalties and fees decreased 13.3% in the fourth quarter
of 2016 and 8.1% for the twelve months ended December 31, 2016
compared to the same periods a year ago. The decrease in franchise
royalties and fees was the combined result of decreases in revenues
generated by our franchisees and the number of franchised stores.
Our franchisee revenue totaled $214.0
million in the fourth quarter and $917.1 million for the twelve months ended
December 31, 2016, a decrease of 10.3% and 5.7%, respectively,
from the same periods for the prior year. Same store revenues for
franchised stores were down 7.3% and same store customer counts
were down 2.3% for the fourth quarter of 2016 compared with the
same quarter for the prior year. Franchised stores had 544,000
customers at the end of 2016, a 6.4% decline from the prior period
(revenues and customers of franchisees are not revenues and
customers of the Aaron's Business or Aaron's, Inc.).
2017 Outlook
The Company is providing the following outlook for the 2017
year. Diluted earnings per share is presented both on a GAAP basis
and on a non-GAAP basis excluding Progressive-related intangible
amortization and any future one-time or unusual items. Adjusted
EBITDA also excludes any future one-time or unusual items. The
Company currently expects to achieve the following:
Aaron's Inc. (Consolidated)
- Revenues of approximately $3.10 billion to $3.31 billion, excluding revenues of
franchisees.
- Adjusted EBITDA of $320 million to $353 million.
- GAAP diluted earnings per share in the range of $1.85 to
$2.10.
- Non-GAAP diluted earnings per share in the range of $2.15
to $2.40.
- Capital expenditures of $60 million to $80 million.
- Operations of both the Aaron's Business and Progressive are
expected to generate positive cash flow.
Aaron's Business
- Total revenues of approximately $1.68 billion to
$1.78 billion, including lease
revenues of $1.30 billion to $1.40
billion.
- Same store revenues of approximately negative 12% to negative
8%.
- Adjusted EBITDA of approximately $155 million to
$170 million.
- The above outlook includes the impact of the closure of
approximately 70 stores in the second quarter of 2017.
- The Company will continue to evaluate its store base for
strategic growth and consolidation opportunities.
Progressive
- Total revenues of approximately $1.40 billion to
$1.50 billion.
- EBITDA of $170 million to $185
million.
DAMI
- Total revenues of approximately $25 million to
$35 million.
- EBITDA of approximately negative $5
million to negative $2
million.
Conference Call and Webcast
Aaron's, Inc. will hold a conference call to discuss its
quarterly and full-year financial results on Friday,
February 17, 2017, 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 leading omnichannel provider of
lease-purchase solutions. Aaron's Business engages in the sales and
lease ownership and specialty retailing of furniture, consumer
electronics, home appliances and accessories through its more than
1,860 Company-operated and franchised stores in 47 states and
Canada as well as its e-commerce
platform Aarons.com. In addition, Progressive Leasing, a
virtual lease-to-own company, provides lease-purchase solutions
through approximately 22,000 retail locations in 46 states.
Dent-A-Med, Inc., d/b/a the HELPcard®, 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 HELPcard.com.
"Safe Harbor" Statement under the Private Securities
Litigation Reform Act of 1995: Statements in this news release
regarding our 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,"
"expectations," "outlook," "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 execution and
results of our strategy and expense reduction and store closure and
consolidation initiatives, risks related to Progressive's "virtual"
lease-to-own business, the outcome of Progressive's pilot or test
programs with various retailers and the results of Progressive's
efforts to expand its relationships with existing retailer partners
and establish new partnerships with additional retailers, 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) and
guidance for 2017, the number of stores the Company expects to
close in the second quarter of 2017 and the charges expected to be
incurred in connection therewith, and management's capital
allocation plans. 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
|
(Unaudited)
Twelve Months Ended
|
|
|
December
31,
|
December
31,
|
|
|
2016
|
2015
|
2016
|
2015
|
Revenues:
|
|
|
|
|
|
Lease Revenues and
Fees
|
|
$
|
676,667
|
|
$
|
666,574
|
|
$
|
2,780,824
|
|
$
|
2,684,184
|
|
Retail
Sales
|
|
5,872
|
|
6,817
|
|
29,418
|
|
32,872
|
|
Non-Retail
Sales
|
|
90,182
|
|
127,943
|
|
309,446
|
|
390,137
|
|
Franchise Royalties
and Fees
|
|
13,385
|
|
15,438
|
|
58,350
|
|
63,507
|
|
Interest and Fees on
Loans Receivable
|
|
7,535
|
|
2,845
|
|
24,080
|
|
2,845
|
|
Other
|
|
1,313
|
|
1,582
|
|
5,598
|
|
6,211
|
|
Total
|
|
794,954
|
|
821,199
|
|
3,207,716
|
|
3,179,756
|
|
|
|
|
|
|
|
Costs and
Expenses:
|
|
|
|
|
|
Depreciation of Lease
Merchandise
|
|
316,897
|
|
300,267
|
|
1,304,295
|
|
1,212,644
|
|
Retail Cost of
Sales
|
|
3,530
|
|
3,950
|
|
18,580
|
|
21,040
|
|
Non-Retail Cost of
Sales
|
|
80,923
|
|
114,895
|
|
276,608
|
|
351,777
|
|
Operating
Expenses
|
|
340,783
|
|
358,041
|
|
1,351,785
|
|
1,357,030
|
|
Restructuring
|
|
15,560
|
|
—
|
|
20,218
|
|
—
|
|
Other Operating
(Income) Expense, Net
|
|
(474)
|
|
3,469
|
|
(6,446)
|
|
1,324
|
|
Total
|
|
757,219
|
|
780,622
|
|
2,965,040
|
|
2,943,815
|
|
|
|
|
|
|
|
Operating
Profit
|
|
37,735
|
|
40,577
|
|
242,676
|
|
235,941
|
|
Interest
Income
|
|
903
|
|
471
|
|
2,699
|
|
2,185
|
|
Interest
Expense
|
|
(5,429)
|
|
(6,224)
|
|
(23,390)
|
|
(23,339)
|
|
Other Non-Operating
Expense, Net
|
|
(921)
|
|
(444)
|
|
(3,563)
|
|
(1,667)
|
|
Earnings Before
Income Taxes
|
|
32,288
|
|
34,380
|
|
218,422
|
|
213,120
|
|
|
|
|
|
|
|
Income
Taxes
|
|
10,657
|
|
12,654
|
|
79,139
|
|
77,411
|
|
Net
Earnings
|
|
$
|
21,631
|
|
$
|
21,726
|
|
$
|
139,283
|
|
$
|
135,709
|
|
|
|
|
|
|
|
Earnings Per
Share
|
|
$
|
0.30
|
|
$
|
0.30
|
|
$
|
1.93
|
|
$
|
1.87
|
|
Earnings Per Share
Assuming Dilution
|
|
$
|
0.30
|
|
$
|
0.30
|
|
$
|
1.91
|
|
$
|
1.86
|
|
|
|
|
|
|
|
Weighted Average
Shares Outstanding
|
|
71,423
|
|
72,596
|
|
72,354
|
|
72,568
|
|
Weighted Average
Shares Outstanding
Assuming
Dilution
|
|
72,365
|
|
73,274
|
|
73,013
|
|
73,043
|
|
Selected Balance
Sheet Data
(In
thousands)
|
|
|
|
(Unaudited)
|
|
|
|
December 31,
2016
|
|
December 31, 2015
1,2
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
|
308,561
|
|
|
$
|
14,942
|
|
|
Investments
|
|
20,519
|
|
|
22,226
|
|
|
Accounts Receivable,
Net
|
|
95,777
|
|
|
113,439
|
|
|
Loans Receivable,
Net
|
|
84,804
|
|
|
85,795
|
|
|
Lease Merchandise,
Net
|
|
999,381
|
|
|
1,138,938
|
|
|
Property, Plant and
Equipment, Net
|
|
211,271
|
|
|
225,836
|
|
|
Other Assets,
Net
|
|
895,423
|
|
|
1,097,312
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
2,615,736
|
|
|
2,698,488
|
|
|
|
|
|
|
|
|
Debt
|
|
497,829
|
|
|
606,746
|
|
|
Total
Liabilities
|
|
1,134,138
|
|
|
1,331,870
|
|
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
$
|
1,481,598
|
|
|
$
|
1,366,618
|
|
|
|
1 $3.7
million of capitalized deferred debt issuance costs were
reclassified in the first quarter of 2016 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.
|
2 In order
to conform with the current period presentation, the Company made a
reclassification to the December 31,
2015 balance sheet to record the estimated insurance coverage in
excess of stop-loss policy limits and to reflect
certain prepayments to the insurance carrier as part of Other
Assets, Net and the related gross insurance reserve as
accounts payable and accrued expenses, within Total Liabilities
above, rather than presenting them on a net basis.
|
Selected Cash Flow
Data
(In
thousands)
|
|
|
|
(Unaudited)
Twelve Months Ended
|
|
|
December
31,
|
|
|
2016
|
|
2015
|
|
|
|
|
|
Cash Provided by
Operating Activities
|
|
$
|
465,444
|
|
|
$
|
166,761
|
|
Cash Used by
Investing Activities
|
|
(20,081)
|
|
|
(108,850)
|
|
Cash Used by
Financing Activities
|
|
(151,871)
|
|
|
(46,518)
|
|
Effect of Exchange
Rate Changes on Cash & Cash Equivalents
|
|
127
|
|
|
—
|
|
Increase in Cash and
Cash Equivalents
|
|
293,619
|
|
|
11,393
|
|
Cash and Cash
Equivalents at Beginning of Period
|
|
14,942
|
|
|
3,549
|
|
Cash and Cash
Equivalents at End of Period
|
|
$
|
308,561
|
|
|
$
|
14,942
|
|
Aaron's, Inc. and
Subsidiaries
Quarterly Revenues
by Segment
(In
thousands)
(Unaudited)
|
|
THREE MONTHS
ENDED
|
December 31,
2016
|
|
Sales and
Lease
Ownership
|
Progressive
|
HomeSmart
|
DAMI
|
Franchise
|
Manufacturing
|
Other
|
Consolidated
Total
|
Lease Revenues and
Fees
|
$
|
352,706
|
|
$
|
323,961
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
676,667
|
|
Retail
Sales
|
5,872
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
5,872
|
|
Non-Retail
Sales
|
86,642
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3,540
|
|
—
|
|
90,182
|
|
Franchise Royalties
and Fees
|
—
|
|
—
|
|
—
|
|
—
|
|
13,385
|
|
—
|
|
—
|
|
13,385
|
|
Manufacturing
Revenue
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
19,170
|
|
(19,170)
|
|
—
|
|
Interest and Fees on
Loans Receivable
|
—
|
|
—
|
|
—
|
|
7,535
|
|
—
|
|
—
|
|
—
|
|
7,535
|
|
Other
|
1,102
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
211
|
|
1,313
|
|
|
$
|
446,322
|
|
$
|
323,961
|
|
$
|
—
|
|
$
|
7,535
|
|
$
|
13,385
|
|
$
|
22,710
|
|
$
|
(18,959)
|
|
$
|
794,954
|
|
|
|
THREE MONTHS
ENDED
|
December 31,
2015
|
|
Sales and
Lease
Ownership
|
Progressive
|
HomeSmart
|
DAMI
|
Franchise
|
Manufacturing
|
Other
|
Consolidated
Total
|
Lease Revenues and
Fees
|
$
|
375,084
|
|
$
|
276,130
|
|
$
|
15,512
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
(152)
|
|
$
|
666,574
|
|
Retail
Sales
|
6,578
|
|
—
|
|
239
|
|
—
|
|
—
|
|
—
|
|
—
|
|
6,817
|
|
Non-Retail
Sales
|
127,077
|
|
—
|
|
—
|
|
—
|
|
—
|
|
866
|
|
—
|
|
127,943
|
|
Franchise Royalties
and Fees
|
—
|
|
—
|
|
—
|
|
—
|
|
15,438
|
|
—
|
|
—
|
|
15,438
|
|
Manufacturing
Revenue
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
27,106
|
|
(27,106)
|
|
—
|
|
Interest and Fees on
Loans Receivable
|
—
|
|
—
|
|
—
|
|
2,845
|
|
—
|
|
—
|
|
—
|
|
2,845
|
|
Other
|
1,314
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
268
|
|
1,582
|
|
|
$
|
510,053
|
|
$
|
276,130
|
|
$
|
15,751
|
|
$
|
2,845
|
|
$
|
15,438
|
|
$
|
27,972
|
|
$
|
(26,990)
|
|
$
|
821,199
|
|
Aaron's, Inc. and
Subsidiaries
Twelve Months
Revenues by Segment
(In
thousands)
(Unaudited)
|
|
TWELVE MONTHS
ENDED
|
December 31,
2016
|
|
Sales and
Lease
Ownership
|
Progressive
|
HomeSmart
|
DAMI
|
Franchise
|
Manufacturing
|
Other
|
Consolidated
Total
|
Lease Revenues and
Fees
|
$
|
1,518,439
|
|
$
|
1,237,597
|
|
$
|
24,664
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
124
|
|
$
|
2,780,824
|
|
Retail
Sales
|
28,690
|
|
—
|
|
728
|
|
—
|
|
—
|
|
—
|
|
—
|
|
29,418
|
|
Non-Retail
Sales
|
300,411
|
|
—
|
|
—
|
|
—
|
|
—
|
|
9,035
|
|
—
|
|
309,446
|
|
Franchise Royalties
and Fees
|
—
|
|
—
|
|
—
|
|
—
|
|
58,350
|
|
—
|
|
—
|
|
58,350
|
|
Manufacturing
Revenue
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
81,239
|
|
(81,239)
|
|
—
|
|
Interest and Fees on
Loans Receivable
|
—
|
|
—
|
|
—
|
|
24,080
|
|
—
|
|
—
|
|
—
|
|
24,080
|
|
Other
|
4,772
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
826
|
|
5,598
|
|
|
$
|
1,852,312
|
|
$
|
1,237,597
|
|
$
|
25,392
|
|
$
|
24,080
|
|
$
|
58,350
|
|
$
|
90,274
|
|
$
|
(80,289)
|
|
$
|
3,207,716
|
|
|
|
TWELVE MONTHS
ENDED
|
December 31,
2015
|
|
Sales and
Lease
Ownership
|
Progressive
|
HomeSmart
|
DAMI
|
Franchise
|
Manufacturing
|
Other
|
Consolidated
Total
|
Lease Revenues and
Fees
|
$
|
1,572,778
|
|
$
|
1,049,681
|
|
$
|
61,877
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
(152)
|
|
$
|
2,684,184
|
|
Retail
Sales
|
31,545
|
|
—
|
|
1,327
|
|
—
|
|
—
|
|
—
|
|
—
|
|
32,872
|
|
Non-Retail
Sales
|
388,006
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2,131
|
|
—
|
|
390,137
|
|
Franchise Royalties
and Fees
|
—
|
|
—
|
|
—
|
|
—
|
|
63,507
|
|
—
|
|
—
|
|
63,507
|
|
Manufacturing
Revenue
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
103,889
|
|
(103,889)
|
|
—
|
|
Interest and Fees on
Loans Receivable
|
—
|
|
—
|
|
—
|
|
2,845
|
|
—
|
|
—
|
|
—
|
|
2,845
|
|
Other
|
4,941
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,270
|
|
6,211
|
|
|
$
|
1,997,270
|
|
$
|
1,049,681
|
|
$
|
63,204
|
|
$
|
2,845
|
|
$
|
63,507
|
|
$
|
106,020
|
|
$
|
(102,771)
|
|
$
|
3,179,756
|
|
Use of Non-GAAP Financial Information:
Non-GAAP net earnings, non-GAAP diluted earnings per share,
EBITDA and Adjusted EBITDA 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 for the fourth quarter of 2016 each
exclude $6.6 million in
Progressive-related intangible amortization expense, $214,000 of gain related to the sale of HomeSmart
and $15.6 million in restructuring
charges for the Aaron's Business. For the twelve months of 2016
non-GAAP net earnings and non-GAAP diluted earnings per share
exclude $26.4 million in
Progressive-related intangible amortization expense, an
$11.1 million gain from the sale of
the Company's former headquarters building, $3.7 million in retirement and severance charges,
a $5.4 million loss related to the
HomeSmart sale and $20.2 million in
restructuring charges for the Aaron's Business. Non-GAAP net
earnings and non-GAAP diluted earnings per share for 2015 exclude
$6.6 million and $26.4 million in Progressive-related intangible
amortization expense, $2.7 million
and $3.7 million of DAMI related
transaction costs and $3.5 million
related to the lease termination of a Company aircraft for the
fourth quarter and twelve months of 2015, respectively.
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 other adjustments described in the calculation of non-GAAP net
earnings above.
Management believes that non-GAAP net earnings, non-GAAP diluted
earnings per share, EBITDA and Adjusted EBITDA provide relevant and
useful information, and are widely used by analysts, investors and
competitors in our industry as well as by our management in
assessing both consolidated and business unit performance.
Non-GAAP net earnings and non-GAAP diluted earnings provides
management and investors with an understanding of the results from
the primary operations of our business by excluding the effects of
certain items that generally arose from larger, one-time
transactions that are not reflective of the ordinary earnings
activity of our operations. This measure may be useful to an
investor in evaluating the underlying operating performance of our
business.
EBITDA and Adjusted EBITDA also provides management and
investors with an understanding of one aspect of earnings before
the impact of investing and financing charges and income taxes.
These measures may be useful to an investor in evaluating our
operating performance and liquidity because the measures:
- 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.
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 management and investors an additional,
supplemental metric to assess DAMI's underlying operational
performance for the period. Due to the growth of our originated
credit card loan portfolio after our October
2015 acquisition of DAMI, we believe pre-provision, pre-tax
loss helps investors to assess DAMI's operating performance until
such time as the credit card portfolio reaches levels which
management believes will be normal and recurring. Management
uses this measure as one of its bases for strategic planning and
forecasting for DAMI. Our use of pre-provision, pre-tax loss may
not be comparable to similar measures disclosed by other companies,
because not all companies and analysts calculate these measures in
the same manner.
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
earnings before income taxes 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 other companies,
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
|
(Unaudited)
Twelve Months Ended
|
|
December
31,
|
December
31,
|
|
2016
|
2015
|
2016
|
2015
|
Net
Earnings
|
$
|
21,631
|
|
$
|
21,726
|
|
$
|
139,283
|
|
$
|
135,709
|
|
Add
Progressive-Related Intangible Amortization Expense
(1)(2)
|
4,413
|
|
4,163
|
|
16,803
|
|
16,780
|
|
Less Gain on Sale of
Building (3)
|
—
|
|
—
|
|
(7,060)
|
|
—
|
|
Add Retirement and
Severance Charges (4)
|
—
|
|
—
|
|
2,349
|
|
—
|
|
Add Loss on Sale of
HomeSmart (5)
|
(143)
|
|
—
|
|
3,463
|
|
—
|
|
Add Restructuring
(6)
|
10,424
|
|
—
|
|
12,893
|
|
—
|
|
Add DAMI Transaction
Costs (7)
|
—
|
|
1,732
|
|
—
|
|
2,326
|
|
Add Loss Aircraft
Lease Termination (8)
|
—
|
|
2,212
|
|
—
|
|
2,229
|
|
|
|
|
|
|
Non-GAAP Net
Earnings
|
$
|
36,325
|
|
$
|
29,833
|
|
$
|
167,731
|
|
$
|
157,044
|
|
|
|
|
|
|
Earnings Per Share
Assuming Dilution
|
$
|
0.30
|
|
$
|
0.30
|
|
$
|
1.91
|
|
$
|
1.86
|
|
Add
Progressive-Related Intangible Amortization Expense
(1)(2)
|
0.06
|
|
0.06
|
|
0.23
|
|
0.23
|
|
Less Gain on Sale of
Building (3)
|
—
|
|
—
|
|
(0.10)
|
|
—
|
|
Add Retirement and
Severance Charges (4)
|
—
|
|
—
|
|
0.03
|
|
—
|
|
Add Loss on Sale of
HomeSmart (5)
|
—
|
|
—
|
|
0.05
|
|
—
|
|
Add Restructuring
(6)
|
0.14
|
|
—
|
|
0.18
|
|
—
|
|
Add DAMI Transaction
Costs (7)
|
—
|
|
0.02
|
|
—
|
|
0.03
|
|
Add Loss Aircraft
Lease Termination (8)
|
—
|
|
0.03
|
|
—
|
|
0.03
|
|
|
|
|
|
|
Non-GAAP Earnings Per
Share Assuming Dilution (9)
|
$
|
0.50
|
|
$
|
0.41
|
|
$
|
2.30
|
|
$
|
2.15
|
|
|
|
|
|
|
Weighted Average
Shares Outstanding Assuming Dilution
|
72,365
|
|
73,274
|
|
73,013
|
|
73,043
|
|
(1)
|
Net of taxes of
$2,175 and $9,547 for the three and twelve months ended
December 31, 2016 calculated using the effective tax rate for
the respective periods.
|
(2)
|
Net of taxes of
$2,425 and $9,570 for the three and twelve months ended
December 31, 2015 calculated using the effective tax rate for
the respective periods.
|
(3)
|
Net of taxes of
$4,011 for the twelve months ended December 31, 2016
calculated using the effective tax rate for the period.
|
(4)
|
Net of taxes of
$1,334 for the twelve months ended December 31, 2016
calculated using the effective tax rate for the period.
|
(5)
|
Net of taxes of $71
and $1,968 for the three and twelve months ended December 31,
2016 calculated using the effective tax rate for the respective
periods.
|
(6)
|
Net of taxes of
$5,136 and $7,325 for the three and twelve months ended
December 31, 2016 calculated using the effective tax rate for
the respective periods.
|
(7)
|
Net of taxes of
$1,009 and $1,326 for the three and twelve months ended
December 31, 2015 calculated using the effective tax rate for
the respective periods.
|
(8)
|
Net of taxes of
$1,288 and $1,271 for the three and twelve months ended
December 31, 2015 calculated using the effective tax rate for
the respective periods.
|
(9)
|
In some cases the sum
of individual EPS amounts may not equal total EPS
calculations.
|
DAMI Pre-tax,
Pre-provision Income (Loss)
(In
thousands)
|
|
|
(Unaudited)
Three Months Ended
|
(Unaudited)
Twelve Months Ended
|
|
December
31,
|
December
31,
|
|
2016
|
2015
|
2016
|
2015
|
Loss Before Income
Taxes
|
$
|
(1,587)
|
|
$
|
(1,964)
|
|
$
|
(9,273)
|
|
$
|
(1,964)
|
|
Add: Adjustment to
Increase Allowance for Loan Losses
During Period
|
1,035
|
|
937
|
|
5,687
|
|
937
|
|
Pre-tax,
Pre-provision Loss
|
$
|
(552)
|
|
$
|
(1,027)
|
|
$
|
(3,586)
|
|
$
|
(1,027)
|
|
Due to the growth of our originated credit card loan
portfolio subsequent to the October
2015 acquisition of DAMI, we believe pre-provision, pre-tax
loss helps investors to assess DAMI's operating performance until
such time as the credit card portfolio reaches levels which
management believes will be normal and recurring. Our use of
pre-provision, pre-tax loss may not be comparable to similar
measures disclosed by other companies, because not all companies
and analysts calculate these measures in the same manner.
Aaron's, Inc. and
Subsidiaries
Non-GAAP Financial
Information
Quarterly Segment
EBITDA
(In
thousands)
(Unaudited)
|
|
Three Months Ended
December 31, 2016
|
|
Sales and
Lease
Ownership
|
Progressive
|
HomeSmart
|
DAMI
|
Franchise
|
Manufacturing
|
Other1
|
Consolidated
Total
|
Net
Earnings
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
21,631
|
|
Income
Taxes
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
10,657
|
|
Earnings
(Loss)
Before Income
Taxes
|
8,396
|
|
29,034
|
|
214
|
|
(1,587)
|
|
10,844
|
|
(886)
|
|
(13,727)
|
|
32,288
|
|
Interest Expense
(Income)
|
2,130
|
|
4,817
|
|
—
|
|
1,075
|
|
—
|
|
(1)
|
|
(2,592)
|
|
5,429
|
|
Depreciation
|
6,922
|
|
1,282
|
|
—
|
|
121
|
|
252
|
|
312
|
|
4,638
|
|
13,527
|
|
Amortization
|
526
|
|
6,588
|
|
—
|
|
145
|
|
—
|
|
—
|
|
—
|
|
7,259
|
|
EBITDA
|
$
|
17,974
|
|
$
|
41,721
|
|
$
|
214
|
|
$
|
(246)
|
|
$
|
11,096
|
|
$
|
(575)
|
|
$
|
(11,681)
|
|
$
|
58,503
|
|
Loss on Sale of
HomeSmart
|
—
|
|
—
|
|
(214)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(214)
|
|
Restructuring
|
14,051
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,509
|
|
15,560
|
|
Adjusted
EBITDA
|
$
|
32,025
|
|
$
|
41,721
|
|
$
|
—
|
|
$
|
(246)
|
|
$
|
11,096
|
|
$
|
(575)
|
|
$
|
(10,172)
|
|
$
|
73,849
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2015
|
|
Sales and
Lease
Ownership
|
Progressive
|
HomeSmart
|
DAMI
|
Franchise
|
Manufacturing
|
Other1
|
Consolidated
Total
|
Net
Earnings
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
21,726
|
|
Income
Taxes
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
12,654
|
|
Earnings
(Loss)
Before Income
Taxes
|
30,917
|
|
9,764
|
|
367
|
|
(1,964)
|
|
11,358
|
|
513
|
|
(16,575)
|
|
34,380
|
|
Interest Expense
(Income)
|
1,920
|
|
5,339
|
|
233
|
|
764
|
|
—
|
|
4
|
|
(2,036)
|
|
6,224
|
|
Depreciation
|
7,040
|
|
1,030
|
|
606
|
|
86
|
|
330
|
|
353
|
|
3,863
|
|
13,308
|
|
Amortization
|
504
|
|
6,588
|
|
12
|
|
132
|
|
—
|
|
—
|
|
—
|
|
7,236
|
|
EBITDA
|
$
|
40,381
|
|
$
|
22,721
|
|
$
|
1,218
|
|
$
|
(982)
|
|
$
|
11,688
|
|
$
|
870
|
|
$
|
(14,748)
|
|
$
|
61,148
|
|
DAMI Related
Transaction Costs
|
—
|
|
2,741
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
2,741
|
|
Loss on Aircraft
Lease Termination
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
3,500
|
|
3,500
|
|
Adjusted
EBITDA
|
$
|
40,381
|
|
$
|
25,462
|
|
$
|
1,218
|
|
$
|
(982)
|
|
$
|
11,688
|
|
$
|
870
|
|
$
|
(11,248)
|
|
$
|
67,389
|
|
1Other
segment is primarily revenues attributable to (i) leasing space to
unrelated third parties in the corporate headquarters building
during 2015 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.
|
Aaron's, Inc. and
Subsidiaries
Non-GAAP Financial
Information
Twelve Months
Segment EBITDA
(In
thousands)
(Unaudited)
|
|
Twelve Months Ended
December 31, 2016
|
|
Sales and
Lease
Ownership
|
Progressive
|
HomeSmart
|
DAMI
|
Franchise
|
Manufacturing
|
Other1
|
Consolidated
Total
|
Net
Earnings
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
139,283
|
|
Income
Taxes
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
79,139
|
|
Earnings
(Loss)
Before Income
Taxes
|
$
|
127,306
|
|
$
|
104,686
|
|
$
|
(3,479)
|
|
$
|
(9,273)
|
|
$
|
46,766
|
|
$
|
(27)
|
|
$
|
(47,557)
|
|
$
|
218,422
|
|
Interest Expense
(Income)
|
8,257
|
|
20,042
|
|
294
|
|
4,116
|
|
—
|
|
1
|
|
(9,320)
|
|
23,390
|
|
Depreciation
|
28,384
|
|
4,377
|
|
810
|
|
423
|
|
1,149
|
|
1,297
|
|
17,124
|
|
53,564
|
|
Amortization
|
1,875
|
|
26,350
|
|
19
|
|
570
|
|
—
|
|
—
|
|
—
|
|
28,814
|
|
EBITDA
|
$
|
165,822
|
|
$
|
155,455
|
|
$
|
(2,356)
|
|
$
|
(4,164)
|
|
$
|
47,915
|
|
$
|
1,271
|
|
$
|
(39,753)
|
|
$
|
324,190
|
|
Gain on Sale of
Building
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(11,071)
|
|
(11,071)
|
|
Retirement
Charges
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3,683
|
|
3,683
|
|
Loss on Sale of
HomeSmart
|
—
|
|
—
|
|
5,431
|
|
—
|
|
—
|
|
—
|
|
—
|
|
5,431
|
|
Restructuring
|
16,622
|
|
—
|
|
—
|
|
—
|
|
88
|
|
—
|
|
3,508
|
|
20,218
|
|
Adjusted
EBITDA
|
$
|
182,444
|
|
$
|
155,455
|
|
$
|
3,075
|
|
$
|
(4,164)
|
|
$
|
48,003
|
|
$
|
1,271
|
|
$
|
(43,633)
|
|
$
|
342,451
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
December 31, 2015
|
|
Sales and
Lease
Ownership
|
Progressive
|
HomeSmart
|
DAMI
|
Franchise
|
Manufacturing
|
Other1
|
Consolidated
Total
|
Net
Earnings
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
135,709
|
|
Income
Taxes
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
77,411
|
|
Earnings
(Loss)
Before Income
Taxes
|
$
|
162,996
|
|
$
|
54,525
|
|
$
|
606
|
|
$
|
(1,964)
|
|
$
|
48,576
|
|
$
|
2,520
|
|
$
|
(54,139)
|
|
$
|
213,120
|
|
Interest Expense
(Income)
|
7,751
|
|
21,959
|
|
900
|
|
764
|
|
—
|
|
26
|
|
(8,061)
|
|
23,339
|
|
Depreciation
|
29,246
|
|
2,520
|
|
2,465
|
|
86
|
|
1,429
|
|
1,482
|
|
14,805
|
|
52,033
|
|
Amortization
|
1,655
|
|
26,350
|
|
33
|
|
132
|
|
—
|
|
—
|
|
—
|
|
28,170
|
|
EBITDA
|
$
|
201,648
|
|
$
|
105,354
|
|
$
|
4,004
|
|
$
|
(982)
|
|
$
|
50,005
|
|
$
|
4,028
|
|
$
|
(47,395)
|
|
$
|
316,662
|
|
DAMI Related
Transaction Costs
|
—
|
|
3,652
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3,652
|
|
Loss on Aircraft
Lease Termination
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3,500
|
|
3,500
|
|
Adjusted
EBITDA
|
$
|
201,648
|
|
$
|
109,006
|
|
$
|
4,004
|
|
$
|
(982)
|
|
$
|
50,005
|
|
$
|
4,028
|
|
$
|
(43,895)
|
|
$
|
323,814
|
|
1Other
segment is primarily attributable to (i) leasing space to unrelated
third parties in the corporate headquarters building during 2015
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.
|
Reconciliation of
2017 Projected Outlook for EBITDA
|
|
|
Fiscal Year
2017
|
|
Aaron's
Business
|
Progressive
|
DAMI
|
Consolidated
|
(in
thousands)
|
Range
|
Range
|
Range
|
Range
|
Estimated Net
Earnings
|
|
|
|
$134,000 -
$155,000
|
Taxes1
|
—
|
—
|
—
|
76,000 -
88,000
|
Projected Earnings
Before Taxes
|
$98,000 -
$113,000
|
$123,000 -
$138,000
|
$(11,000) -
$(8,000)
|
210,000 -
243,000
|
Interest Expense
(Income)
|
—
|
19,000
|
5,000
|
24,000
|
Depreciation
|
43,000
|
5,000
|
1,000
|
49,000
|
Amortization
|
1,000
|
23,000
|
—
|
24,000
|
Projected
EBITDA
|
142,000 -
157,000
|
170,000 -
185,000
|
(5,000) -
(2,000)
|
307,000 -
340,000
|
Projected Other
Adjustments, Net2
|
13,000
|
—
|
—
|
13,000
|
Projected Adjusted
EBITDA
|
$155,000 -
$170,000
|
$170,000 -
$185,000
|
$(5,000) -
$(2,000)
|
$320,000 -
$353,000
|
|
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.
|
Reconciliation of
2017 Projected Outlook for Earnings Per Share
Assuming Dilution
to Non-GAAP Earnings Per Share Assuming Dilution
|
|
|
Fiscal Year
2017
|
|
Low Range
|
High Range
|
Projected Earnings
Per Share Assuming Dilution
|
$
|
1.85
|
|
$
|
2.10
|
|
Add Projected
Progressive-Related Intangible Amortization Expense
|
0.20
|
|
0.20
|
|
Add Sum of Other
Adjustments1
|
0.10
|
|
0.10
|
|
Projected Non-GAAP
Earnings Per Share Assuming Dilution
|
$
|
2.15
|
|
$
|
2.40
|
|
|
1
Projected Other Adjustments include the non-GAAP charges related to
the Aaron's Business restructuring.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/aarons-inc-reports-fourth-quarter-and-year-end-2016-results-300409358.html
SOURCE Aaron's, Inc.