ATLANTA, Sept. 10, 2020 // PRNewswire // - Aaron's, Inc. (NYSE: AAN), 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
Progressive Leasing
The Aaron's Business
Reconciliation of non-GAAP Items
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 website. Vive Financial provides a variety of second-look credit products that are originated through federally insured banks. For more information, visit the Aarons investor website.
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 "outlook," "uncertainty," "update," "believe," "expect," and similar terminology. These risks and uncertainties include factors such as the effects on our business from the COVID-19 pandemic, including its impact on our revenue and overall financial performance and the manner in which we are able to conduct our operations, including global supply chain challenges; increased levels of unemployment related to the pandemic and whether there will be any additional government stimulus or supplemental unemployment benefits payments, and the amounts and timing of any such payments; increases in lease merchandise write-offs and the provision for returns and uncollectible renewal payments in light of the impact of the COVID-19 pandemic; 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, 2019 and in the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2020. Statements in this press release that are "forward-looking" include without limitation statements about our expectations regarding our consolidated third quarter 2020 revenues, adjusted EBITDA and non-GAAP earnings per share; customer payment activity and the performance of our lease portfolios; third quarter revenues, EBITDA and invoice growth for Progressive Leasing; the level of write-offs in the third quarter for Progressive Leasing and the adequacy of its reserves related to write-offs; whether there will be any incremental COVID-related charges taken by Progressive Leasing during the third quarter; revenues, adjusted EBITDA and same store revenues growth for our Aaron's Business; the level of write-offs in the third quarter for the Aaron's Business and the adequacy of its reserves related to write-offs; and whether there will be any incremental COVID-related charges taken by the Aaron's Business during the third quarter. 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.
SOURCE Aaron's, Inc.
Headquartered in Atlanta, Aaron's, Inc. is the sales and lease ownership and specialty retailing of furniture, consumer electronics, home appliances and accessories.