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Aarons Company Inc (AAN)

Headquartered in Atlanta, The Aaron's Company, Inc. is a leading technology-enabled omnichannel provider of lease-purchase solutions. Aaron's engages in the sales and lease ownership and specialty retailing of furniture, consumer electronics, appliances and accessories through its approximately 1,300 Company-operated and franchised stores in 47 states and Canada, as well as its e-commerce platform, Aarons.com.

Company profile

Ticker
AAN
Exchange
Website
Employees
Incorporated
Location
Fiscal year end
Former names
Aaron's SpinCo, Inc.
SEC CIK
Subsidiaries
Aaron's, LLC • Aaron Investment Company • Aaron’s Canada, ULC • Aaron’s Logistics, LLC • Envizzo, LLC • Aaron’s Procurement Company, LLC • Aaron’s Strategic Services, LLC • Aaron's Business Real Estate Holdings, LLC • Aaron's US HoldCo, Inc. • Aaron's Retail Solutions, LLC ...

AAN stock data

Analyst ratings and price targets

Last 3 months

Calendar

25 Jul 22
16 Aug 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 28.25M 28.25M 28.25M 28.25M 28.25M 28.25M
Cash burn (monthly) (no burn) 1.64M 4.49M (no burn) (no burn) (no burn)
Cash used (since last report) n/a 2.6M 7.11M n/a n/a n/a
Cash remaining n/a 25.65M 21.14M n/a n/a n/a
Runway (months of cash) n/a 15.6 4.7 n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
4 May 22 Barrett Kelly Hefner Common Stock Grant Acquire A No No 21.32 6,332 135K 18,311
4 May 22 Harris Hubert L. Jr. Common Stock Grant Acquire A No No 21.32 6,332 135K 22,381
4 May 22 Ehmer Walter G Common Stock Grant Acquire A No No 21.32 6,332 135K 18,159
4 May 22 Marvonia P Moore Common Stock Grant Acquire A No No 21.32 6,332 135K 15,189
4 May 22 Timothy A Johnson Common Stock Grant Acquire A No No 21.32 6,332 135K 13,226
96.0% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 172 183 -6.0%
Opened positions 22 27 -18.5%
Closed positions 33 30 +10.0%
Increased positions 62 49 +26.5%
Reduced positions 59 84 -29.8%
13F shares Current Prev Q Change
Total value 629.35M 712.97M -11.7%
Total shares 29.54M 28.92M +2.1%
Total puts 21.8K 9.8K +122.4%
Total calls 0 31.8K EXIT
Total put/call ratio Infinity 0.3 +Infinity%
Largest owners Shares Value Change
BLK Blackrock 5.71M $114.75M +7.5%
Vanguard 3.98M $79.85M +5.9%
Copeland Capital Management 2.04M $40.98M +1.0%
Dimensional Fund Advisors 1.42M $28.55M +3.2%
STT State Street 1.27M $25.64M +4.0%
BAC Bank Of America 956.89K $19.21M +28.0%
Palisade Capital Management 953.49K $19.15M -5.6%
LSV Asset Management 867.63K $17.42M -0.4%
Russell Investments 723.53K $14.53M +28.9%
Royce & Associates 721.21K $14.48M +7.3%
Largest transactions Shares Bought/sold Change
BLK Blackrock 5.71M +398.53K +7.5%
Pacer Advisors 0 -356.95K EXIT
Ziegler Capital Management 0 -328.19K EXIT
Victory Capital Management 334.19K +297.99K +823.2%
Norges Bank 0 -279.27K EXIT
Vanguard 3.98M +221.79K +5.9%
BAC Bank Of America 956.89K +209.27K +28.0%
Solas Capital Management 508.2K +208.2K +69.4%
Russell Investments 723.53K +162.31K +28.9%
Advantage Alpha Capital Partners 0 -147.45K EXIT

Financial report summary

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Risks
  • The COVID-19 pandemic may have a material adverse effect on our business, results of operations, financial condition, liquidity and/or cash flow in future periods and the availability of labor due to vaccine and other regulatory restrictions on employers and the workforce and the costs associated with complying with such regulations.
  • Federal and state regulatory authorities are increasingly focused on our industry, and in addition to being subject to various existing federal and state laws and regulations, we may be subject to new or additional federal and state laws and regulations (or changes in interpretations of existing laws and regulations) that could expose us to government investigations, pricing restrictions, fines, penalties or other government-required payments by us, significant additional costs or compliance-related burdens that could force us to change our business practices in a manner that may have a material adverse effect on our business, results of operations or financial condition.
  • From time to time we are subject to regulatory and legal proceedings which seek material damages or seek to place significant restrictions on our business operations. These proceedings may be negatively perceived by the public and materially and adversely affect our business, liquidity and capital resources.
  • Certain judicial or regulatory decisions may restrict or eliminate the enforceability of certain types of contractual provisions, such as mandatory arbitration clauses, designed to limit costly litigation, including class actions, as a dispute resolution method, which could have a material adverse effect on our business.
  • Product safety and quality control issues, including product recalls, could harm our reputation, divert resources, reduce sales and increase costs.
  • Inflationary environment could adversely impact our business through increased cost to attract and retain talent, increased raw material costs, increased logistical costs to get product from suppliers to customer’s homes and the acceleration of prices beyond the norm resulting in lower lease volumes.
  • The loss of the services of our key executives, or our inability to attract, develop and retain key talent could have a material adverse effect on our business and operations.
  • If we do not maintain the privacy and security of customer, employee or other confidential information, due to cybersecurity-related "hacking" attacks, intrusions into our systems by unauthorized parties or otherwise, we could incur significant costs, litigation, regulatory enforcement actions and damage to our reputation, any one of which could have a material adverse effect on our business, results of operations or financial condition.
  • If our IT systems are impaired, our business could be interrupted, our reputation could be harmed and we may experience lost revenues and increased costs and expenses.
  • BrandsMart Acquisition Risks
  • We may be unable to realize the anticipated synergies or may incur additional and/or unexpected costs in order to realize them.
  • We face many challenges which could have a material adverse effect on our overall results of operations, including the commoditization of certain product categories, increasing competition from a growing variety of sources, a decentralized, high-fixed-cost operating model, adverse consequences to our supply chain function from decreased procurement volumes and from the COVID-19 pandemic and lower lease volumes, and thus, less recurring revenues written into our customer lease portfolio.
  • We continue to implement a strategic plan within our business that has changed, and is expected to continue to change, significant aspects of how our business has been operated historically, and there is no guarantee that it will be successful.
  • Our growth strategies may be unsuccessful if we are unable to identify and complete future acquisitions and successfully integrate acquired businesses or assets.
  • We could lose our access to third-party data sources, including, for example, those sources that provide us with data that we use as inputs into our centralized decisioning tools, which could cause us competitive harm and have a material adverse effect on our business, results of operations or financial condition.
  • We must successfully order and manage our inventory to reflect customer demand and anticipate changing consumer preferences and buying trends or our revenue and profitability will be adversely affected.
  • Our competitors could impede our ability to attract new customers, or cause current customers to cease doing business with us, which could have a material adverse effect on our business, results of operations or financial condition.
  • Given the nature of the COVID-19 pandemic, including the significant job losses caused by the pandemic, and uncertainty regarding how many unemployed workers will return to their jobs, and when they may do so, our proprietary algorithms and customer lease decisioning tools used to approve customers could no longer be indicative of our customers’ ability to perform under their lease agreements with us.
  • Our proprietary algorithms and customer lease decisioning tools used to approve customers could no longer be indicative of our customers’ ability to perform under their lease agreements with us, even after the COVID-19 pandemic subsides.
  • Our business and operations are subject to risks related to climate change.
  • The transactions offered to consumers by our businesses may be negatively characterized by consumer advocacy groups, the media and certain federal, state and local government officials, and if those negative characterizations become increasingly accepted by consumers, demand for our services and the transactions we offer could decrease and our business, results of operations or financial condition could be materially and adversely affected.
  • We may engage in, or be subject to, litigation with our franchisees.
  • Operational and other failures by our franchisees may adversely impact us.
  • We are subject to laws that regulate franchisor-franchisee relationships. Our ability to enforce our rights against our franchisees may be adversely affected by these laws, which could impair our growth strategy and cause our franchise revenues to decline.
  • Changes to current law with respect to the assignment of liabilities in the franchise business model could materially and adversely affect our profitability.
  • The success of our business is dependent on factors impacting consumer spending that are not under our control, including general economic conditions, and unfavorable economic conditions in the markets where we operate could materially and adversely affect our financial performance.
  • The geographic concentration of our store locations may have an adverse impact on our financial performance due to economic downturns and serious weather events in regions where we have a high concentration of our stores.
  • Our current insurance program may expose us to unexpected costs, including casualty and accident related self-insured losses, and negatively affect our financial performance.
  • We are subject to sales, income and other taxes, which can vary from state-to-state and be difficult and complex to calculate due to the nature of our business. A failure to correctly calculate and pay such taxes could result in substantial tax liabilities and a material adverse effect on our results of operations.
  • Employee misconduct could harm us by subjecting us to monetary loss, significant legal liability, regulatory scrutiny, and reputational harm.
  • We have limited recent history of operating as an independent company, and our historical financial information is not necessarily representative of the results that we would have achieved as a separate, publicly traded company and may not be a reliable indicator of our future results.
  • We may not achieve some or all of the expected benefits of the separation, and the separation may materially and adversely affect our business, results of operations or financial condition.
  • As a public company we are required to maintain effective internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act and our failure to do so could materially and adversely affect us.
  • In connection with our separation from PROG Holdings, PROG Holdings will indemnify us for certain liabilities, and we will indemnify PROG Holdings for certain liabilities. If we are required to make payments to PROG Holdings under these indemnities, our financial results could be negatively impacted. The PROG Holdings indemnity may not be sufficient to hold us harmless from the full amount of liabilities for which PROG Holdings will be allocated responsibility, and PROG Holdings may not be able to satisfy its indemnification obligations in the future.
  • If the distribution, together with certain related transactions, does not qualify as a transaction that is generally tax free for U.S. federal income tax purposes, PROG Holdings, The Aaron's Company and their shareholders could be subject to significant tax liabilities and, in certain circumstances, The Aaron's Company could be required to indemnify PROG Holdings for material taxes and other related amounts pursuant to indemnification obligations under the tax matters agreement.
  • U.S. federal income tax consequences may restrict our ability to engage in certain desirable strategic or capital-raising transactions.
  • As an independent, publicly traded company, we may not enjoy the same benefits that were available to us as a segment of PROG Holdings. It may be more costly for us to separately obtain or perform the various corporate functions that PROG Holdings performed for us prior to the separation, such as legal, treasury, accounting, auditing, human resources, investor relations, public affairs, finance and cash management services.
  • We or PROG Holdings may fail to perform certain transitional services under various transaction agreements that were executed as part of the separation or we may fail to have necessary systems and services in place when certain of the transaction agreements covering those services expire.
  • Risks Related to Ownership of Our Common Stock
  • We cannot guarantee that an active trading market for our common stock will be sustained, and our stock price may fluctuate significantly.
  • If securities or industry analysts do not publish research or publish misleading or unfavorable research about our business, our stock price and trading volume could decline.
  • Shareholders' percentage of ownership in us may be diluted in the future.
  • We cannot guarantee the timing, amount or payment of dividends on our common stock.
  • Our amended and restated bylaws designate the Georgia State-wide Business Court in the State of Georgia as the exclusive forum for certain litigation, which may limit our shareholders’ ability to choose a judicial forum for disputes with us.
  • Certain provisions in our articles of incorporation and bylaws, and of Georgia law, may deter or delay an acquisition of us.

Content analysis

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Positive
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Legalese
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H.S. sophomore Avg
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