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YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 97.4 million, up 5.8% compared to the beginning of 2021, and ended 2022 at $92.0 million, down 5.6% compared to the end of 2021. E-commerce revenues, based on the number of stores open as of Decembe...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 's Business during the year ended December 31, 2022. The loss before income taxes was $14.7 million during the year ended December 31, 2022 and was negatively impacted by restructuring charges of $3...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. and were negatively impacted by restructuring charges of $9.2 million and separation-related costs of $6.7 million. Diluted losses per share for the year ended December 31, 2022 were $0.17 compared...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status.  1, 1,074 1,092 1,167 Opened Added through acquisition 11 15 Closed, sold or merged (40) (29) (94) Company-operated Aaron's stores open at December 31, 1,034 1,074 1,092 GenNext (incl...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. . Stores BrandsMart U.S.A. stores open at January 1, Purchased by the Company 10 BrandsMart U.S.A. stores open at December 31, 10 Lease Portfolio Size. Our lease portfolio size for the Aaron's...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. customer early purchase option exercises, lease merchandise returns, and write-offs. Lease portfolio size provides management insight into expected future collectible lease payments. Aaron's Company...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. ) the lease portfolio size as of the beginning of such month. The lease renewal rate provides management insight into the Company's success in retaining current customers within our customer lease po...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. new leases into and retaining current customers within our customer lease portfolio. For the year ended December 31, 2022, we calculated this amount by comparing revenues for the year ended Decembe...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. Taxes In this management’s discussion and analysis section, we review our consolidated results. The financial statements for the year ended December 31, 2022 and comparable prior year period are co...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. into four components: (a) lease revenues and fees; (b) retail sales; (c) non-retail sales; and (d) franchise royalties and other revenues. Lease revenues and fees primarily include all revenues deri...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. to a lesser extent, sales of Woodhaven manufactured products to third-party retailers. Franchise royalties and other revenues primarily represent fees from the sale of franchise rights and royalty p...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. Sales . Retail cost of sales includes cost of merchandise inventories sold through our BrandsMart U.S.A. stores and the depreciated cost of merchandise sold through our Company-operated Aaron's sto...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. exception of compensation costs that are eligible for capitalization. Other Operating Expenses, Net . Other operating expenses, net includes occupancy costs (including rent expense, store maintena...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. represents charges incurred related to estimated lease merchandise write-offs. Restructuring Expenses, Net. Restructuring expenses, net are comprised principally of closed store operating lease ri...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. impairment assessment and the resulting impairment charge. This impairment charge was recorded within the Unallocated Corporate category of segment reporting. Separation Costs . Separation costs r...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. Expense. Interest expense consists primarily of interest on the Company's variable rate borrowings, commitment fees on unused balances of the Credit Facility (as defined below), as well as the amor...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. which is presented as a separate reportable segment, have been included in the Company's consolidated results from the April 1, 2022 acquisition date. Change Year Ended December 31, 2022 vs. 2021...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. ) 2,249,434 1,845,504 403,930 21.9 COSTS OF REVENUES: Depreciation of Lease Merchandise and Other Lease Revenue Costs 513,659 531,859 (18,200) (3.4) Retail Cost of Sales 474,879 38,033 ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 62.8% OPERATING EXPENSES: Personnel Costs 515,144 495,411 19,733 4.0 Other Operating Expenses, Net 490,143 434,491 55,652 12.8 Provision for Lease Merchandise Write-Offs 97,564 67,888 ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. f 1,164,321 1,013,740 150,581 14.9 OPERATING (LOSS) PROFIT (2,548) 145,749 (148,297) (101.7) Interest Expense (9,875) (1,460) (8,415) nmf Other Non-Operating (Expense) Income, Net (2,...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 126.3) NET (LOSS) EARNINGS (5,280) 109,934 (115,214) (104.8) nmf—Calculation is not meaningful 52 Revenues. Total consolidated revenues were $2.25 billion during the year ended December 31, ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. Business segment during the year ended December 31, 2022, as discussed further in the "Segment Performance" section below. Gross Profit. Consolidated gross profit for the Company was $1.16 billion...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. as discussed further in the "Segment Performance" section below. Gross profit for the BrandsMart segment during 2022 includes a one-time $23.1 million non-cash charge for a fair value adjustment to ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. offset by lower performance-based incentive compensation in the Aaron's Business segment and Unallocated Corporate category. Other Operating Expenses, Net. Information about certain significant co...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. ,102 15,684 1,418 9.0 Bank and Credit Card Related Fees 31,081 21,111 9,970 47.2 Gains on Dispositions of Store-Related Assets, net (11,665) (3,862) (7,803) nmf Other Miscellaneous Expe...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 5% for the same period in 2021. Occupancy costs increased during the year ended December 31, 2022 primarily due to the acquisition of BrandsMart U.S.A., which resulted in occupancy costs of $31.1 mi...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 2022 primarily due to higher fuel and distribution costs driven by inflationary pressures as well as the acquisition of BrandsMart U.S.A., which resulted in additional shipping and handling costs of ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 2022. Intangible amortization increased primarily due to the amortization of intangible assets acquired in the BrandsMart U.S.A. acquisition. 53 Bank and credit card related fees increased primari...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. e-related reserves, and other expenses. The increases in this category during the year ended December 31, 2022 were primarily driven by the acquisition of BrandsMart U.S.A., which resulted in other m...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 2, inflationary pressures within the broader macroeconomic environment continued to significantly impact the liquidity of our customers, which resulted in an elevated provision for lease merchandise ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. , and $3.1 million of severance charges related to reductions in store support center staff. Restructuring expenses for the year ended December 31, 2021 were $9.2 million and were primarily comprised...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. charge of $12.9 million to fully write-off the goodwill balance of its Aaron's Business reporting unit. This impairment charge was recorded within the Unallocated Corporate category of segment repo...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. independent, separate public entity. Acquisition-Related Costs . Acquisition-related costs recognized during the year ended December 31, 2022 were $14.6 million and primarily represent third-party...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. December 31, 2021 consists primarily of commitment fees on unused balances of the Company's previous revolving credit and term loan facility, as well as the amortization of debt issuance costs. Oth...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. and 2021, respectively. Foreign currency remeasurement net losses resulting from changes in the value of the U.S. dollar against the Canadian dollar and earnings on cash and cash equivalent investme...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. in the effective tax rate was primarily due to a loss before income taxes of $14.7 million during the year ended December 31, 2022 due to factors further described above, as well as the impact of a ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. Thousands) 2022 2021 Lease Revenues and Fees 1,529,125 1,633,489 (104,364) (6.4) Retail Sales 39,693 57,568 (17,875) (31.1) Non-Retail Sales 110,531 128,299 (17,768) (13.8) Franchi...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. revenues and fees and retail sales during the year ended December 31, 2022 were primarily due to the lease portfolio size declining during the period, a lower lease renewal rate, lower exercise of e...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. during the first half of 2021. Non-retail sales also decreased by $3.3 million due to the reduction of 16 franchised stores during the 24-month period ended December 31, 2022. The decrease in franc...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 3) As a percentage of total revenues, gross profit for the Aaron's Business declined to 62.3% during the year ended December 31, 2022 compared to 62.8% for the comparable period in 2021. The factors...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. .3 million decrease due to lower lease originations and an $8.4 million decrease due to lower exercise of early purchase options, as well as higher lease merchandise purchase costs and higher levels ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. Business was $11.4 million and $12.2 million during the years ended December 31, 2022 and 2021, respectively, which represented a gross profit margin of 10.3% and 9.5% for the respective periods. Th...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. Ended December 31, Change (In Thousands) 2022 2021 Retail Sales 552,465 552,465 nmf Gross Profit 101,364 101,364 nmf (Loss) Earnings Before Income Taxes (11,171) (11,171) nmf nmf—Ca...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. April 1, 2022 acquisition date and was $101.4 million during the year ended December 31, 2022. As a percentage of revenues, gross profit for the BrandsMart segment was 18.3% during the year ended De...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 2022 reflect a one-time $23.1 million non-cash charge for a fair value adjustment to the acquired merchandise inventories. 56 Overview of Financial Position Aaron's Company, Inc.'s consolidated ba...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. . Aaron's Company, Inc.'s consolidated balance sheet as of December 31, 2022 includes merchandise inventories of $96.0 million associated with the BrandsMart U.S.A. acquisition. Property, plant and...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. assets and impairment charges recorded in connection with restructuring actions. The increase in the Company's operating lease liabilities was partially offset by contractual lease payments net of t...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. .0 million, partially offset by amortization expense recognized during the year ended December 31, 2022. Refer to Note 2 to the accompanying consolidated and combined financial statements for further...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. shares increased $16.9 million due primarily to the Company's repurchase of 735,032 shares of common stock for $13.4 million during the year ended December 31, 2022. Liquidity and Capital Resources...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. through cash flows from operations, and as necessary, borrowings under our Revolving Facility. The Credit Facility provides for a $175 million term loan (the "Term Loan") and a $375 million revolvin...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. by operating activities was $170.4 million and $136.0 million during the years ended December 31, 2022 and 2021, respectively. The increase in operating cash flows was primarily driven by lower leas...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 4 million during the years ended December 31, 2022 and 2021, respectively. The $266.0 million increase in investing cash outflows was primarily due to the purchase consideration of $265.6 million re...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. of $104.0 million during the year ended December 31, 2021. The $289.8 million change in financing cash flows during the year ended December 31, 2022 was primarily due to (i) the Company's borrowings...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status.  31, 2022, the Company repurchased 735,032 shares of the Company's common stock for a total purchase price of approximately $13.4 million. The total shares outstanding as of December 31, 2022 were 30...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. At its November 2022 meeting, our Board approved a quarterly dividend of $0.1125 per share, which was paid to shareholders on January 5, 2023. Aggregate dividend payments for the year ended Decembe...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. of 11.1%, payable on April 4, 2023, to shareholders on record as of March 16, 2023. Debt Financing As of December 31, 2022, the total available credit under our $375.0 million Credit Facility (def...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 0 (as amended, the "Previous Credit Facility") which is further described in Note 8 to the accompanying consolidated and combined financial statements. The new Credit Facility provides for a $175 mil...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. term rate based on the Secured Overnight Financing Rate ("SOFR") plus an applicable margin ranging between 1.50% and 2.25%, based on the Company’s Total Net Debt to EBITDA Ratio (as defined in the C...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. closing date, (ii) 5.00% of the original principal amount of the Term Loan during the third, fourth and fifth years after the closing date, with the remaining principal balance of the Term Loan to b...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. ), we may pay cash dividends in any year so long as, after giving pro forma effect to the dividend payment, we maintain compliance with our financial covenants and no event of default has occurred or...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. for 100% expense deduction of certain qualified depreciable assets, including lease merchandise inventory, purchased by the Company after September 27, 2017 (but would be phased down starting in 202...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. will receive on qualifying expenditures after December 31, 2022. Leases . We lease retail store and warehouse space for most of our store-based operations, as well as corporate office space for st...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. in this Annual Report. Franchise Loan Guaranty. We have guaranteed the borrowings of certain independent franchisees under a franchise loan agreement (the "Franchise Loan Facility") with a bank th...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. of the covenants under that facility or our Revolving Facility, and no event of default exists under those agreements, until such time as our Revolving Facility expires. We currently expect to inclu...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. the Company amended its Franchise Loan Facility to reduce the total commitment amount from $12.5 million to $10.0 million. Since the inception of the franchise loan program in 1994, losses associat...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 2022 and December 31, 2021, respectively. The liability for both periods included qualitative consideration of potential losses, including uncertainties impacting the operations and liquidity of our...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 50 days. The inventory loan was collateralized by all personal property of the BrandsMart segment, including merchandise inventories, equipment and other goods. Interest was due monthly on the outst...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. ings outstanding under the inventory loan of December 31, 2022. Purchase Obligations. Aaron's Company, Inc. has non-cancellable purchase obligations of $28.6 million primarily related to certain ad...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. our most critical accounting estimates below. Our critical accounting estimates are estimates made in accordance with U.S. generally accepted accounting principles ("GAAP") that involve a significan...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. payments received prior to the month earned are recorded as deferred lease revenue, and this amount is included in customer deposits and advance payments in the accompanying consolidated balance she...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. receivable allowance is estimated using one year of historical write-off and collection experience. Other qualitative factors are considered in estimating the allowance, such as seasonality and curr...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. that provides extended warranty coverage on their product purchases, with payment being due for this protection at the point of sale. A third-party underwriter assumes the risk associated with the c...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. $4.0 million and $3.0 million, respectively. The return asset and allowance for sales returns was recorded within prepaid and other assets and accounts payable and accrued expenses within the accomp...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. housing costs. Aaron's Company, Inc. begins depreciating merchandise at the earlier of 12 months and one day from our purchase of the merchandise or when the item is leased to customers. We depreciat...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. . Aaron's Company, Inc. estimates its allowance for lease merchandise write-offs using historical write-off experience. Other qualitative factors are considered in estimating the allowance, such as s...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 2022 and 2021, respectively, and is included in the provision for lease merchandise write-offs in the accompanying consolidated and combined statements of earnings. For merchandise not on lease, ou...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. , lost or unsalable merchandise identified is written off. 61 Acquisition-Related Fair Value Adjustments On April 1, 2022, the Company completed the previously announced acquisition of all of the ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. Mart U.S.A. acquisition. Merchandise Inventories Aaron's Company, Inc.’s merchandise inventories are stated at the lower of weighted average cost or net realizable value, and consist entirely of me...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. a new cost basis for the inventory and are recorded within retail cost of sales within the consolidated and combined statement of earnings. The write-offs of merchandise inventories associated with ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 95,964 The following table shows the components of the reserve for merchandise inventories: Year Ended (In Thousands) December 31, 2022 Beginning Balance Merchandise Written off Provision for ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. , prolonged negative industry or economic trends and significant underperformance relative to historical or projected future operating results. As an alternative to this annual impairment testing for...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. with its annual impairment testing, management evaluated the various components of the operating segments further described in Note 12 to the accompanying consolidated and combined financial stateme...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. is a component of the Aaron's Business operating segment. Management considered the aggregation of the BrandsMart Leasing reporting unit and Aaron's Business reporting unit as a single reporting un...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. consolidated and combined financial statements. Of this amount, $26.5 million was assigned to the BrandsMart Leasing reporting unit and the remaining $28.2 million was assigned to the BrandsMart rep...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. the Aaron's Business Reporting Unit's goodwill was fully impaired and recorded a goodwill impairment loss of $12.9 million during the quarter ended September 30, 2022. Aaron's Company, Inc. conclude...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. units was in excess of its carrying value. Aaron's Company, Inc. also determined that there were no events that occurred or circumstances that changed during the fourth quarter of 2022 that would mo...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. fair value measurement involved significant unobservable inputs (Level 3 inputs, as discussed more fully below). The income approach utilized the discounted future expected cash flows, which require...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. most sensitive and susceptible to change as they require significant management judgment. Aaron's Company, Inc. performed sensitivity analyses for the Aaron's Business reporting unit during its inte...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. supported the Company's conclusion of no impairment for the BrandsMart reporting unit as of October 1, 2022, although an increase of 10% or more in the weighted-average cost of capital may result in...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. impacted by further deterioration of macroeconomic conditions, including inflation and rising interest rates. March 2020 Impairment of Goodwill As of March 31, 2020, management of Aaron's, Inc. de...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. fair value measurement involved significant unobservable inputs (Level 3 inputs, as discussed more fully below). The income approach utilized the discounted future expected cash flows, which require...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. Given the uncertainty discussed above, the Company performed certain sensitivity analyses including considering reasonably possible alternative assumptions for short-term and long-term growth or dec...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. . For operating leases which contain escalating payments, we record the related lease expense on a straight-line basis over the lease term. We generally do not obtain significant amounts of lease inc...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. also closed and consolidated 139 underperforming company-operated stores under similar restructuring initiatives. Our primary costs associated with closing stores are the future lease payments and r...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. reported claims. This analysis is based upon an assessment of the likely outcome or historical experience and considers a variety of factors, including the actuarial loss forecasts, company-specific...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. balances on deposit and other insurance receivables with the insurance carriers of $25.1 million and $30.8 million at December 31, 2022 and 2021, respectively, which were recorded within prepaid exp...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. Corporate Expense Allocations And Other Intercompany Transactions Corporate Allocations Prior to the Separation and Distribution Aaron's Company, Inc.'s operating model prior to the separation and ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. primarily on a pro rata basis using an applicable measure of revenues, headcount or other relevant measures. Aaron's Company, Inc. considers these allocations to be a reasonable reflection of the ut...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. and cash flows had it been a standalone company during the periods presented. Actual costs that would have been incurred if the Company had been a standalone company would depend on multiple factors...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. Mart, along with an Unallocated Corporate category for remaining unallocated costs. Aaron's Company, Inc. has retroactively adjusted, for all periods presented, its segment disclosures to align with ...