We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Aarons Holdings Company Inc | NYSE:AAN | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.16 | 2.36% | 6.95 | 7.05 | 6.88 | 6.90 | 151,037 | 01:00:00 |
ý
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Georgia
|
|
58-0687630
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I. R. S. Employer
Identification No.)
|
|
|
|
309 E. Paces Ferry Road, N.E.
Atlanta, Georgia
|
|
30305-2377
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Large Accelerated Filer
|
|
ý
|
|
|
Accelerated Filer
|
|
o
|
|
|
|
|
|
|
|
|
Non-Accelerated Filer
|
|
o
|
(Do not check if a smaller reporting company)
|
|
Smaller Reporting Company
|
|
o
|
Title of Each Class
|
|
Shares Outstanding as of
May 2, 2016
|
Common Stock, $.50 Par Value
|
|
72,750,329
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Item 3. Defaults Upon Senior Securities
|
|
|
|
Item 4. Mine Safety Disclosures
|
|
|
|
Item 5. Other Information
|
|
|
|
|
|
|
(Unaudited)
|
|
|
||||
(In Thousands, Except Share Data)
|
March 31,
2016 |
|
December 31,
2015 |
||||
ASSETS:
|
|
|
|
||||
Cash and Cash Equivalents
|
$
|
118,905
|
|
|
$
|
14,942
|
|
Investments
|
22,108
|
|
|
22,226
|
|
||
Accounts Receivable (net of allowances of $30,028 in 2016 and $34,861 in 2015)
|
85,203
|
|
|
113,439
|
|
||
Lease Merchandise (net of accumulated depreciation and allowances of $720,007 in 2016 and $738,657 in 2015)
|
1,102,233
|
|
|
1,138,938
|
|
||
Loans Receivable (net of allowances and unamortized fees of $6,779 in 2016 and $2,971 in 2015)
|
83,198
|
|
|
85,795
|
|
||
Property, Plant and Equipment at Cost (net of accumulated depreciation of $228,941 in 2016 and $222,752 in 2015)
|
220,508
|
|
|
225,836
|
|
||
Goodwill
|
524,687
|
|
|
539,475
|
|
||
Other Intangibles (net of accumulated amortization of $54,932 in 2016 and $48,021 in 2015)
|
268,235
|
|
|
275,912
|
|
||
Income Tax Receivable
|
30,034
|
|
|
179,174
|
|
||
Prepaid Expenses and Other Assets
|
93,656
|
|
|
59,434
|
|
||
Total Assets
|
$
|
2,548,767
|
|
|
$
|
2,655,171
|
|
LIABILITIES & SHAREHOLDERS’ EQUITY:
|
|
|
|
||||
Accounts Payable and Accrued Expenses
|
$
|
244,491
|
|
|
$
|
300,356
|
|
Accrued Regulatory Expense
|
—
|
|
|
4,737
|
|
||
Deferred Income Taxes Payable
|
306,671
|
|
|
307,481
|
|
||
Customer Deposits and Advance Payments
|
61,642
|
|
|
69,233
|
|
||
Debt
|
518,041
|
|
|
606,746
|
|
||
Total Liabilities
|
1,130,845
|
|
|
1,288,553
|
|
||
Commitments and Contingencies (Note 6)
|
|
|
|
|
|
||
Shareholders’ Equity:
|
|
|
|
||||
Common Stock, Par Value $.50 Per Share: Authorized: 225,000,000 Shares at March 31, 2016 and December 31, 2015; Shares Issued: 90,752,123 at March 31, 2016 and December 31, 2015
|
45,376
|
|
|
45,376
|
|
||
Additional Paid-in Capital
|
240,750
|
|
|
240,112
|
|
||
Retained Earnings
|
1,450,991
|
|
|
1,403,120
|
|
||
Accumulated Other Comprehensive Income (Loss)
|
76
|
|
|
(517
|
)
|
||
|
1,737,193
|
|
|
1,688,091
|
|
||
Less: Treasury Shares at Cost
|
|
|
|
||||
Common Stock: 18,002,753 Shares at March 31, 2016 and 18,151,560 at December 31, 2015
|
(319,271
|
)
|
|
(321,473
|
)
|
||
Total Shareholders’ Equity
|
1,417,922
|
|
|
1,366,618
|
|
||
Total Liabilities & Shareholders’ Equity
|
$
|
2,548,767
|
|
|
$
|
2,655,171
|
|
|
Three Months Ended
March 31, |
||||||
(In Thousands, Except Per Share Data)
|
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
|
|
||
|
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
|
)
|
||
|
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
|
|
|
|
||||
Basic
|
$
|
.68
|
|
|
$
|
.68
|
|
Assuming Dilution
|
$
|
.68
|
|
|
$
|
.68
|
|
CASH DIVIDENDS DECLARED PER SHARE:
|
|
|
|
||||
Common Stock
|
$
|
.025
|
|
|
$
|
.023
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING:
|
|
|
|
||||
Basic
|
72,634
|
|
|
72,517
|
|
||
Assuming Dilution
|
73,217
|
|
|
72,855
|
|
|
Three Months Ended
March 31, |
||||||
(In Thousands)
|
2016
|
|
2015
|
||||
Net Earnings
|
$
|
49,687
|
|
|
$
|
49,243
|
|
Other Comprehensive Income:
|
|
|
|
||||
Foreign Currency Translation Adjustment
|
593
|
|
|
3
|
|
||
Total Other Comprehensive Income
|
593
|
|
|
3
|
|
||
Comprehensive Income
|
$
|
50,280
|
|
|
$
|
49,246
|
|
|
Three Months Ended
March 31, |
||||||
(In Thousands)
|
2016
|
|
2015
|
||||
OPERATING ACTIVITIES:
|
|
|
|
||||
Net Earnings
|
$
|
49,687
|
|
|
$
|
49,243
|
|
Adjustments to Reconcile Net Earnings to Cash Provided by Operating Activities:
|
|
|
|
||||
Depreciation of Lease Merchandise
|
348,302
|
|
|
315,986
|
|
||
Other Depreciation and Amortization
|
20,743
|
|
|
19,944
|
|
||
Accounts Receivable Provision
|
34,514
|
|
|
29,931
|
|
||
Provision for Credit Losses on Loans Receivable
|
1,798
|
|
|
—
|
|
||
Stock-Based Compensation
|
5,529
|
|
|
3,016
|
|
||
Deferred Income Taxes
|
1,616
|
|
|
(32,400
|
)
|
||
Other Changes, Net
|
(6,100
|
)
|
|
(965
|
)
|
||
Changes in Operating Assets and Liabilities, Net of Effects of Acquisitions and Dispositions:
|
|
|
|
||||
Additions to Lease Merchandise
|
(447,382
|
)
|
|
(405,270
|
)
|
||
Book Value of Lease Merchandise Sold or Disposed
|
114,453
|
|
|
124,543
|
|
||
Accounts Receivable
|
(6,400
|
)
|
|
(23,012
|
)
|
||
Prepaid Expenses and Other Assets
|
(1,327
|
)
|
|
6,535
|
|
||
Income Tax Receivable
|
149,140
|
|
|
117,298
|
|
||
Accounts Payable and Accrued Expenses
|
(57,704
|
)
|
|
24,827
|
|
||
Accrued Regulatory Expense
|
(4,737
|
)
|
|
(3,420
|
)
|
||
Customer Deposits and Advance Payments
|
(7,591
|
)
|
|
(1,287
|
)
|
||
Cash Provided by Operating Activities
|
194,541
|
|
|
224,969
|
|
||
INVESTING ACTIVITIES:
|
|
|
|
||||
Investments in Loans Receivable
|
(18,706
|
)
|
|
—
|
|
||
Proceeds from Loans Receivable
|
18,635
|
|
|
—
|
|
||
Additions to Property, Plant and Equipment
|
(14,088
|
)
|
|
(9,758
|
)
|
||
Proceeds from Sale of Property, Plant and Equipment
|
15,082
|
|
|
1,027
|
|
||
Acquisitions of Businesses and Contracts
|
—
|
|
|
(3,623
|
)
|
||
Proceeds from Dispositions of Businesses and Contracts
|
(32
|
)
|
|
—
|
|
||
Cash Provided by (Used in) Investing Activities
|
891
|
|
|
(12,354
|
)
|
||
FINANCING ACTIVITIES:
|
|
|
|
||||
Proceeds from Debt
|
84,133
|
|
|
30,150
|
|
||
Repayments on Debt
|
(173,169
|
)
|
|
(115,564
|
)
|
||
Dividends Paid
|
(1,816
|
)
|
|
(1,668
|
)
|
||
Excess Tax Benefits from Stock-Based Compensation
|
(716
|
)
|
|
53
|
|
||
Issuance of Stock Under Stock Option Plans
|
99
|
|
|
702
|
|
||
Cash Used in 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
|
|
NOTE 1:
|
BASIS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
Stores as of March 31 (Unaudited)
|
2016
|
|
2015
|
||
Company-operated stores
|
|
|
|
||
Sales and Lease Ownership
|
1,223
|
|
|
1,235
|
|
HomeSmart
|
82
|
|
|
83
|
|
Total Company-operated stores
|
1,305
|
|
|
1,318
|
|
Franchised stores
|
729
|
|
|
790
|
|
Systemwide stores
|
2,034
|
|
|
2,108
|
|
Active Doors at March 31 (Unaudited)
|
2016
|
|
2015
|
||
Progressive Active Doors
1
|
13,521
|
|
|
11,861
|
|
|
Three Months Ended
March 31, |
||||
(Shares In Thousands)
|
2016
|
|
2015
|
||
Weighted average shares outstanding
|
72,634
|
|
|
72,517
|
|
Dilutive effect of share-based awards
|
583
|
|
|
338
|
|
Weighted average shares outstanding assuming dilution
|
73,217
|
|
|
72,855
|
|
(In Thousands)
|
March 31, 2016
|
|
December 31, 2015
|
||||
Customers
|
$
|
32,263
|
|
|
$
|
35,153
|
|
Corporate
|
16,046
|
|
|
26,175
|
|
||
Franchisee
|
36,894
|
|
|
52,111
|
|
||
|
$
|
85,203
|
|
|
$
|
113,439
|
|
(In Thousands)
|
2016
|
|
2015
|
||||
Bad debt expense
|
$
|
27,939
|
|
|
$
|
24,141
|
|
Provision for returns and uncollected renewal payments
|
6,575
|
|
|
5,790
|
|
||
Accounts receivable provision
|
$
|
34,514
|
|
|
$
|
29,931
|
|
(In Thousands)
|
Foreign Currency
|
|
Total
|
||||
Balance at January 1, 2016
|
$
|
(517
|
)
|
|
$
|
(517
|
)
|
Other comprehensive income
|
593
|
|
|
593
|
|
||
Balance at March 31, 2016
|
$
|
76
|
|
|
$
|
76
|
|
NOTE 2.
|
ACQUISITIONS
|
(In Thousands)
|
Amounts Recognized as of Acquisition Date
1
|
|
Measurement Period Adjustments
2
|
|
Amounts Recognized as of Acquisition Date (as adjusted)
|
||||||
Purchase Price
|
$
|
54,900
|
|
|
$
|
—
|
|
|
$
|
54,900
|
|
|
|
|
|
|
|
||||||
Estimated Fair Value of Identifiable Assets Acquired and Liabilities Assumed
|
|||||||||||
Cash and Cash Equivalents
|
4,185
|
|
|
—
|
|
|
4,185
|
|
|||
Loans Receivable
3
|
89,186
|
|
|
(876
|
)
|
|
88,310
|
|
|||
Receivables
|
45
|
|
|
—
|
|
|
45
|
|
|||
Property, Plant and Equipment
|
2,754
|
|
|
—
|
|
|
2,754
|
|
|||
Other Intangibles
|
3,400
|
|
|
(500
|
)
|
|
2,900
|
|
|||
Income Tax Receivable
|
728
|
|
|
—
|
|
|
728
|
|
|||
Prepaid Expenses and Other Assets
|
671
|
|
|
—
|
|
|
671
|
|
|||
Deferred Income Tax Assets
|
375
|
|
|
2,426
|
|
|
2,801
|
|
|||
Total Identifiable Assets Acquired
|
101,344
|
|
|
1,050
|
|
|
102,394
|
|
|||
Accounts Payable and Accrued Expenses
|
(1,709
|
)
|
|
(760
|
)
|
|
(2,469
|
)
|
|||
Debt
|
(45,025
|
)
|
|
—
|
|
|
(45,025
|
)
|
|||
Total Liabilities Assumed
|
(46,734
|
)
|
|
(760
|
)
|
|
(47,494
|
)
|
|||
Goodwill
|
290
|
|
|
(290
|
)
|
|
—
|
|
|||
Net Assets Acquired
|
$
|
54,900
|
|
|
$
|
—
|
|
|
$
|
54,900
|
|
NOTE 3.
|
FAIR VALUE MEASUREMENT
|
(In Thousands)
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||
Deferred Compensation Liability
|
$
|
—
|
|
|
$
|
(11,587
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(11,576
|
)
|
|
$
|
—
|
|
(In Thousands)
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
|
Level 1
|
|
Level 2
1
|
|
Level 3
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||
Assets Held for Sale
|
$
|
—
|
|
|
$
|
39,059
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,976
|
|
|
$
|
—
|
|
1
|
Assets held for sale is presented in the table net of liabilities of
$1.1 million
associated with the HomeSmart Disposal Group.
|
(In Thousands)
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||
Perfect Home Notes
1
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
22,108
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
22,226
|
|
Fixed-Rate Long-Term Debt
2
|
—
|
|
|
(394,375
|
)
|
|
—
|
|
|
—
|
|
|
(395,618
|
)
|
|
—
|
|
1
|
The Perfect Home notes were initially measured at cost. The Company periodically reviews the carrying amount utilizing company-specific transactions or changes in Perfect Home’s financial performance to determine if fair value adjustments are necessary.
|
2
|
The fair value of fixed-rate long-term debt is estimated using the present value of underlying cash flows discounted at a current market yield for similar instruments. The carrying amount of fixed-rate long-term debt was
$375.0 million
at
March 31, 2016
and
December 31, 2015
, respectively.
|
(In Thousands)
|
|
March 31, 2016
|
|
December 31, 2015
|
||||
Credit Card Loans
|
|
$
|
30,456
|
|
|
$
|
13,900
|
|
Acquired Loans
|
|
59,521
|
|
|
74,866
|
|
||
Loans Receivable, Gross
|
|
89,977
|
|
|
88,766
|
|
||
|
|
|
|
|
||||
Allowance for Loan Losses
|
|
(2,589
|
)
|
|
(937
|
)
|
||
Unamortized Fees
|
|
(4,190
|
)
|
|
(2,034
|
)
|
||
Loans Receivable, Net
|
|
$
|
83,198
|
|
|
$
|
85,795
|
|
Aging Category
|
|
March 31, 2016
|
|
December 31, 2015
|
||||
30-59 days past due
|
|
5.9
|
%
|
|
7.9
|
%
|
||
60-89 days past due
|
|
2.5
|
%
|
|
3.3
|
%
|
||
90 or more days past due
|
|
3.7
|
%
|
|
4.1
|
%
|
||
Past due loans receivable
|
|
12.1
|
%
|
|
15.3
|
%
|
||
Current loans receivable
|
|
87.9
|
%
|
|
84.7
|
%
|
||
Balance of loans receivable 90 or more days past due and still accruing interest and fees
|
|
$
|
—
|
|
|
$
|
—
|
|
NOTE 5.
|
INDEBTEDNESS
|
NOTE 6.
|
COMMITMENTS AND CONTINGENCIES
|
NOTE 7.
|
SEGMENTS
|
|
Three Months Ended
March 31, |
||||||
(In Thousands)
|
2016
|
|
2015
|
||||
Revenues From External Customers:
|
|
|
|
||||
Sales and Lease Ownership
|
$
|
502,192
|
|
|
$
|
536,160
|
|
Progressive
|
306,665
|
|
|
251,619
|
|
||
HomeSmart
|
17,680
|
|
|
16,972
|
|
||
DAMI
1
|
4,763
|
|
|
—
|
|
||
Franchise
|
16,295
|
|
|
17,004
|
|
||
Manufacturing
|
24,923
|
|
|
28,806
|
|
||
Other
|
284
|
|
|
368
|
|
||
Revenues of Reportable Segments
|
872,802
|
|
|
850,929
|
|
||
Elimination of Intersegment Revenues
|
(23,802
|
)
|
|
(28,289
|
)
|
||
Cash to Accrual Adjustments
|
5,427
|
|
|
(826
|
)
|
||
Total Revenues from External Customers
|
$
|
854,427
|
|
|
$
|
821,814
|
|
Earnings (Loss) Before Income Taxes:
|
|
|
|
||||
Sales and Lease Ownership
|
$
|
43,562
|
|
|
$
|
52,575
|
|
Progressive
|
21,914
|
|
|
15,830
|
|
||
HomeSmart
2
|
(3,229
|
)
|
|
537
|
|
||
DAMI
|
(2,882
|
)
|
|
—
|
|
||
Franchise
|
13,119
|
|
|
13,898
|
|
||
Manufacturing
|
868
|
|
|
1,282
|
|
||
Other
3
|
(6,156
|
)
|
|
(11,479
|
)
|
||
Earnings Before Income Taxes for Reportable Segments
|
67,196
|
|
|
72,643
|
|
||
Elimination of Intersegment Profit
|
(755
|
)
|
|
(1,268
|
)
|
||
Cash to Accrual and Other Adjustments
|
13,287
|
|
|
6,455
|
|
||
Total Earnings Before Income Taxes
|
$
|
79,728
|
|
|
$
|
77,830
|
|
(In Thousands)
|
March 31,
2016 |
|
December 31,
2015 |
||||
Assets:
|
|
|
|
||||
Sales and Lease Ownership
|
$
|
1,249,551
|
|
|
$
|
1,261,040
|
|
Progressive
|
878,204
|
|
|
878,457
|
|
||
HomeSmart
|
38,621
|
|
|
44,429
|
|
||
DAMI
|
93,701
|
|
|
97,486
|
|
||
Franchise
|
39,161
|
|
|
53,693
|
|
||
Manufacturing
1
|
31,538
|
|
|
28,986
|
|
||
Other
|
217,991
|
|
|
291,080
|
|
||
Total Assets
|
$
|
2,548,767
|
|
|
$
|
2,655,171
|
|
1
|
Includes inventory (principally raw materials and work-in-process) that has been classified within lease merchandise in the condensed consolidated balance sheets of
$22.1 million
and
$19.4 million
as of
March 31, 2016
and
December 31, 2015
, respectively.
|
•
|
Revenues in the Sales and Lease Ownership and HomeSmart segments are reported on a cash basis for management reporting purposes.
|
•
|
Generally a predetermined amount of each reportable segment’s revenues is charged to the reportable segment as an allocation of corporate overhead.
|
•
|
Accruals related to store closures are not recorded on the reportable segments’ financial statements, but are maintained and controlled by corporate headquarters.
|
•
|
The capitalization and amortization of manufacturing variances are recorded on the consolidated financial statements as part of Cash to Accrual and Other Adjustments and are not allocated to the segment that holds the related lease merchandise.
|
•
|
Advertising expense in the Sales and Lease Ownership and HomeSmart segments is estimated at the beginning of each year and then allocated to the division ratably over time for management reporting purposes. For financial reporting purposes, advertising expense is recognized when the related advertising activities occur. The difference between these two methods is reflected as part of Cash to Accrual and Other Adjustments.
|
•
|
Sales and lease ownership lease merchandise write-offs are recorded using the direct write-off method for management reporting purposes and using the allowance method for financial reporting purposes. The difference between these two methods is reflected as part of Cash to Accrual and Other Adjustments.
|
•
|
Interest expense is allocated to the Sales and Lease Ownership and HomeSmart segments based a percentage of their revenues. Interest expense is allocated to the Progressive segment based on a percentage of the outstanding balances of its intercompany borrowings and of the debt incurred when it was acquired.
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
Active Doors at March 31 (Unaudited)
|
2016
|
|
2015
|
||
Progressive Active Doors
|
13,521
|
|
|
11,861
|
|
For the Three Months Ended March 31 (Unaudited and In Thousands)
|
2016
|
|
2015
|
||||
Progressive Invoice Volume
|
$
|
218,927
|
|
|
$
|
197,480
|
|
|
Three Months Ended
March 31, |
|
Change
|
|||||||||||
(In Thousands)
|
2016
|
|
2015
|
|
$
|
|
%
|
|||||||
REVENUES:
|
|
|
|
|
|
|
|
|||||||
Sales and Lease Ownership
1
|
$
|
502,192
|
|
|
$
|
536,160
|
|
|
$
|
(33,968
|
)
|
|
(6.3
|
)%
|
Progressive
2
|
306,665
|
|
|
251,619
|
|
|
55,046
|
|
|
21.9
|
|
|||
HomeSmart
1
|
17,680
|
|
|
16,972
|
|
|
708
|
|
|
4.2
|
|
|||
DAMI
3
|
4,763
|
|
|
—
|
|
|
4,763
|
|
|
nmf
|
|
|||
Franchise
4
|
16,295
|
|
|
17,004
|
|
|
(709
|
)
|
|
(4.2
|
)
|
|||
Manufacturing
|
24,923
|
|
|
28,806
|
|
|
(3,883
|
)
|
|
(13.5
|
)
|
|||
Other
|
284
|
|
|
368
|
|
|
(84
|
)
|
|
(22.8
|
)
|
|||
Revenues of Reportable Segments
|
872,802
|
|
|
850,929
|
|
|
21,873
|
|
|
2.6
|
|
|||
Elimination of Intersegment Revenues
|
(23,802
|
)
|
|
(28,289
|
)
|
|
4,487
|
|
|
15.9
|
|
|||
Cash to Accrual Adjustments
|
5,427
|
|
|
(826
|
)
|
|
6,253
|
|
|
757.0
|
|
|||
Total Revenues from External Customers
|
$
|
854,427
|
|
|
$
|
821,814
|
|
|
$
|
32,613
|
|
|
4.0
|
%
|
nmf - Calculation is not meaningful
|
|
|
|
|
|
|
|
|||||||
1
Segment revenue principally consists of lease revenues and fees, retail sales and non-retail sales, and is presented on a cash basis.
|
||||||||||||||
2
Segment revenue consists of lease revenues and fees.
|
||||||||||||||
3
Segment revenue consists of interest and fees on loans receivable, and excludes the effect of interest expense.
|
||||||||||||||
4
Segment revenue consists of franchise royalties and fees.
|
|
Three Months Ended March 31,
|
||||||
(In Thousands)
|
2016
|
|
2015
|
||||
Personnel costs
|
$
|
163,530
|
|
|
$
|
155,821
|
|
Occupancy costs
|
53,484
|
|
|
52,054
|
|
||
Lease merchandise adjustments
|
33,906
|
|
|
29,293
|
|
||
Bad debt expense
|
27,939
|
|
|
24,141
|
|
||
Advertising
|
9,686
|
|
|
11,600
|
|
||
Other operating expenses
|
59,879
|
|
|
55,011
|
|
||
Operating Expenses
|
$
|
348,424
|
|
|
$
|
327,920
|
|
|
Three Months Ended
March 31, |
||||||
(In Thousands)
|
2016
|
|
2015
|
||||
Losses (gains) on sales of stores
|
$
|
32
|
|
|
$
|
(2,075
|
)
|
Net gains on sales of delivery vehicles
|
(463
|
)
|
|
(318
|
)
|
||
Impairment charges and net (gains) losses on asset dispositions and assets held for sale
|
(6,298
|
)
|
|
933
|
|
||
Other operating income, net
|
$
|
(6,729
|
)
|
|
$
|
(1,460
|
)
|
•
|
Cash and cash equivalents
increased
$104.0 million
to
$118.9 million
at
March 31, 2016
from
$14.9 million
at
December 31, 2015
. For additional information, refer to the “Liquidity and Capital Resources” section below.
|
•
|
Accounts receivable, net
decreased
$28.2 million
to
$85.2 million
at
March 31, 2016
from
$113.4 million
at
December 31, 2015
primarily due to decreases in non-retail sales during the period.
|
•
|
Income tax receivable
decreased
$149.1 million
primarily because the Company received income tax refunds, net of payments of
$119.7 million
, during the
three months
ended
March 31, 2016
.
The enactment of the Protecting Americans From Tax Hikes Act in December 2015 extended bonus depreciation on eligible inventory held during 2015. Throughout 2015, the Company made payments based on the previously enacted law, resulting in an overpayment when the current act was signed and the Company applied for a refund at that time.
|
•
|
Accounts payable and accrued expenses
decreased
$55.9 million
due primarily to decreases in lease merchandise purchases during the
three months
ended
March 31, 2016
compared to the
three months
ended
December 31, 2015
.
|
•
|
Debt
decreased
$88.7 million
due primarily to the net repayment of
$89.0 million
in revolving credit borrowings, term loans and capital lease obligations. Refer to “Liquidity and Capital Resources” below for further details regarding the Company's financing arrangements.
|
•
|
cash flows from operations;
|
•
|
private debt offerings;
|
•
|
bank debt;
|
•
|
trade credit with vendors;
|
•
|
proceeds from the sale of lease return merchandise; and
|
•
|
stock offerings.
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 1A.
|
RISK FACTORS
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
Period
|
Total Number of Shares Purchased
|
Average Price Paid per Share
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
1
|
||||
January 1, 2016 through January 31, 2016
|
—
|
|
—
|
|
—
|
|
10,496,421
|
|
February 1, 2016 through February 29, 2016
|
—
|
|
—
|
|
—
|
|
10,496,421
|
|
March 1, 2016 through March 31, 2016
|
—
|
|
—
|
|
—
|
|
10,496,421
|
|
Total
|
—
|
|
|
—
|
|
|
ITEM 3.
|
DEFAULTS UPON SENIOR SECURITIES
|
ITEM 4.
|
MINE SAFETY DISCLOSURES
|
ITEM 5.
|
OTHER INFORMATION
|
ITEM 6.
|
EXHIBITS
|
|
|
AARON’S, INC.
|
|
|
|
|
(Registrant)
|
|
|
|
|
Date:
|
May 5, 2016
|
By:
|
/s/ Steven A. Michaels
|
|
|
|
Steven A. Michaels
|
|
|
|
Chief Financial Officer,
|
|
|
|
President Strategic Operations
|
|
|
|
|
Date:
|
May 5, 2016
|
By:
|
/s/ Robert P. Sinclair, Jr.
|
|
|
|
Robert P. Sinclair, Jr.
|
|
|
|
Vice President,
|
|
|
|
Corporate Controller
|
1 Year Aarons Chart |
1 Month Aarons Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions