Aaron’s reported a positive second quarter with a rise in overall revenues following its acquisition of SEI, the company’s largest franchisee.
For the second quarter of 2017 ended June 30, company revenues were $815.6 million compared with $789.4 million for the second quarter of 2016. Net earnings were $36.3 million compared with $38.5 million in the prior year period. Diluted earnings per share were $0.51 compared with $0.53 a year ago.
The company’s Progressive Leasing revenue in the second quarter increased 25.1% to $373.5 million from $298.6 million in the second quarter of 2016. Overall revenues for the Aaron’s business decreased 10.7% to $433.6 million in the second quarter from $485.5 million in the second quarter of 2016. Same store revenues decreased 8.1% during the second quarter, compared with the second quarter of 2016.
“We’re very pleased with our second quarter results,” said John Robinson, CEO, Aaron’s. “Strong growth at Progressive Leasing and disciplined execution in the Aaron’s business drove increased revenues and improved profitability. Progressive had an exceptional quarter driven by a significant increase in total invoice volume and strong lease portfolio performance. The business has impressive momentum across a diverse mix of verticals and we expect to continue to drive long-term growth with our leading virtual lease-to-own model. The Aaron’s business outperformed our expectations primarily due to higher lease margin and strong cost control. We’re making additional investments in the Aaron’s business to improve our direct-to-consumer platform, and our long-term confidence in the business is also demonstrated by the accretive acquisition of Aaron’s largest franchisee.”
The company has acquired substantially all of the assets of its largest franchisee, SEI/Aaron’s, Inc., in an all-cash transaction valued at approximately $140 million. SEI operates 104 Aaron’s stores in 11 states, primarily in the Northeast.