For the third quarter ended September 30, when the company’s Progressive business boosted revenues, Aaron’s posted net earnings of $43.7 million, or 62 cents per diluted share, versus $25.3 million, or 35 cents per diluted share, in the year-earlier period.
Adjusted earnings, excluding one time items, were $48.6 million, or 69 cents per diluted share, versus $31.3 million, or 43 cents per diluted share, in the quarter a year before.
Still, Aaron’s fell short of a MarketBeat published analyst average estimate of 76 cents per adjusted diluted share.
Total revenues were $953.1 million versus $838.9 million in the year-prior period. Operating profit was $57.3 million compared with $42.7 million in the period a year previous.
In the Aaron’s business, comparable store sales were flat. The increase in total revenue arose from a 26.6% increase in revenues at Progressive, which provides leasing businesses for retailer partners, as well as the acquisition of 90 franchised Aaron’s locations early in the third quarter.
“This quarter demonstrates the strength of our model as we achieved solid growth in both revenue and earnings while we continued to invest in the future growth of our business,” said John Robinson, Aaron’s CEO. “Progressive achieved 32% EBITDA growth on a 27% increase in revenue, driven by strong invoice volume growth, consistent portfolio performance, and well-managed expenses. In addition, the team continues to execute on the conversion of our robust retail partner pipeline. The Aaron’s business delivered improved same-store revenue performance in the quarter, and year-over-year recurring revenue written into the portfolio was positive for the third consecutive quarter.”