Aaron’s Posts Positive Q4, Fiscal Year Results

For the fourth quarter ended December 31, 2015, Aaron’s posted net earnings of $21.7 million versus $22.1 million in the prior year period with diluted earnings per share coming in at 30 cents for both periods. Comparable store revenues at company operated stores decreased 3.4% in the fourth quarter, while comps for franchised stores were up 2.4%, versus last year’s period.

Overall, the company reported, revenues gained 10% to $821.2 million versus the 2014 fourth quarter.

On a non-GAAP basis, according to Aaron’s, net earnings for the fourth quarter were $29.8 million compared with $28.7 million for the same period in the year earlier, and diluted earnings per share were 41 cents compared to 39 cents in the 2014 timeframe. In 2015, non-GAAP net earnings and diluted earnings per share excluded the effects of amortization expense resulting from the 2014 acquisition of Progressive, transaction costs related to the October 2015 Dent-A-Med acquisition and a loss from a company aircraft lease termination, Aaron’s said. In 2014, non-GAAP results, in addition to Progressive amortization, excluded the effects of a Progressive deferred revenue adjustment.

Adjusted earnings per share of 41 cents beat a Zacks Investment Research analyst average estimate of 39 cents.

For the full fiscal year, Aaron’s revenues increased 18% to $3.18 billion while net earnings were $135.7 million versus $78.2 million in the year earlier. Diluted earnings per share were $1.86 versus $1.08 a year ago.

On a non-GAAP basis, net earnings for fiscal 2015 were $157 million versus $123.2 million for the same period in 2014, and diluted earnings per share were $2.15 compared with $1.69 a year earlier.

As of December 31, 2015, Aaron’s operated 1,223 company-operated Aaron’s Sales & Lease Ownership stores, 732 franchised stores, as well as 82 company-operated and two franchised HomeSmart stores.