Company profile

Ticker
AAN
Exchange
Website
CEO
John W. Robinson
Employees
Incorporated in
Location
Fiscal year end
Former names
Aaron Rents Inc
SEC CIK
IRS number
580687630

AAN stock data

(
)

Calendar

7 May 20
5 Jul 20
31 Dec 20

News

Company financial data Financial data

Quarter (USD) Mar 20 Dec 19 Sep 19 Jun 19
Revenue 1.1B 1B 963.81M 968.14M
Net income -280.01M -107.06M 39.8M 42.65M
Diluted EPS -4.19 -1.6 0.58 0.62
Net profit margin -25.43% -10.67% 4.13% 4.41%
Operating income -408.9M -83.33M 55.5M 59.85M
Net change in cash 493.26M -92.51M 50.02M -23.91M
Cash on hand 551.02M 57.76M 150.26M 100.24M
Annual (USD) Dec 19 Dec 18 Dec 17 Dec 16
Revenue 3.95B 3.83B 3.38B 3.21B
Net income 31.47M 196.21M 292.54M 139.28M
Diluted EPS 0.46 2.78 4.06 1.91
Net profit margin 0.80% 5.12% 8.65% 4.34%
Operating income 105.87M 289.61M 254.7M 242.68M
Net change in cash 42.48M -35.76M -257.52M 293.62M
Cash on hand 57.76M 15.28M 51.04M 308.56M

Financial data from Aaron's earnings reports

Date Owner Security Transaction Code 10b5-1 $Price #Shares $Value #Remaining
18 Jun 20 Harris Hubert L. Jr. Common Stock Grant Aquire A No 43.38 2,881 124.98K 23,168
18 Jun 20 Robinson Ray M Common Stock Grant Aquire A No 43.38 2,881 124.98K 29,793
18 Jun 20 Day Cynthia N Common Stock Grant Aquire A No 43.38 2,881 124.98K 23,168
18 Jun 20 Curling Douglas C Common Stock Grant Aquire A No 43.38 2,881 124.98K 16,680
18 Jun 20 Betty Kathy T Common Stock Grant Aquire A No 43.38 2,881 124.98K 40,698
97.9% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 245 306 -19.9%
Opened positions 31 67 -53.7%
Closed positions 92 49 +87.8%
Increased positions 86 105 -18.1%
Reduced positions 101 103 -1.9%
13F shares
Current Prev Q Change
Total value 1.61B 4.33B -62.9%
Total shares 66.13M 68.06M -2.8%
Total puts 226.8K 298.8K -24.1%
Total calls 317.6K 200.3K +58.6%
Total put/call ratio 0.7 1.5 -52.1%
Largest owners
Shares Value Change
BLK BlackRock 7.57M $172.52M -3.6%
Vanguard 7.27M $165.65M +2.6%
N Price T Rowe Associates 5.89M $134.17M +3.2%
Dimensional Fund Advisors 4.26M $97.11M -0.8%
STT State Street 2.57M $58.65M +2.9%
Wedge Capital Management L L P 2.1M $47.85M +6.0%
HG Vora Capital Management 2M $45.56M NEW
NTRS Northern Trust 1.7M $38.81M -0.3%
FMR 1.52M $34.72M -18.6%
Stephens Investment Management 1.38M $31.49M +5.7%
Largest transactions
Shares Bought/sold Change
HG Vora Capital Management 2M +2M NEW
Barrow Hanley Mewhinney & Strauss 1M +1M NEW
Hawk Ridge Capital Management 928.72K +928.72K NEW
Norges Bank 0 -899.42K EXIT
Vaughan Nelson Investment Management 0 -892.65K EXIT
Scopus Asset Management 0 -858K EXIT
Diamond Hill Capital Management 974.49K +851.56K +692.7%
FHI Federated Hermes 756.47K +736.5K +3688.6%
Balyasny Asset Management 0 -653.09K EXIT
Arrowstreet Capital, Limited Partnership 407.03K -557.84K -57.8%

Financial report summary

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Risks
  • 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, significant additional costs or compliance-related burdens that could force us to change our business practices in a manner that may be materially adverse to our operations, prospects or financial condition.
  • The effects on our business of our announcement of Progressive Leasing’s proposed settlement with the FTC are not certain; it may have a material adverse effect on our reputation, business, and financial results, as could our failure to comply with the settlement.
  • Progressive Leasing's virtual lease-to-own business, as well as our e-commerce-based business, differs in some potentially significant respects from the risks of the traditional store-based Aaron's Business lease-to-own business. The risks could have a material negative effect on Progressive Leasing, which could result in a material adverse effect on our entire business.
  • Progressive Leasing’s loss of operating revenues from key retail partners could materially and adversely affect our business.
  • We continue to implement an aggressive strategic plan within the Aaron’s Business and there is no guarantee that it will be successful.
  • Our Aaron’s Business faces many challenges which could materially and adversely affect 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; increasing costs for labor and transportation; and lower lease volumes on important categories such as consumer electronics.
  • 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 and/or Progressive Leasing’s or Vive’s retail and merchant partners, demand for our goods and the transactions we offer could decrease and our business could be materially adversely affected.
  • 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 by Progressive Leasing’s existing and prospective retail partners, and materially and adversely affect our business.
  • Certain judicial or regulatory decisions may restrict or eliminate the enforceability of certain types of contractual provisions designed to limit costly litigation, including class actions, as a dispute resolution method.
  • Our competitors could impede our ability to attract new customers, or cause current customers to cease doing business with us.
  • If we do not maintain the privacy and security of customer, retail partner, 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 impact on our business, operating results and financial condition.
  • 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.
  • We could lose our access to data sources, which could cause us competitive harm and have a material adverse effect on our business, operating results, and financial condition.
  • If our information technology systems are impaired, our business could be interrupted, our reputation could be harmed and we may experience lost revenues and increased costs and expenses.
  • We may pursue acquisitions or investments of complementary companies or businesses, and the failure of an acquisition or investment to produce the anticipated results or the inability to fully integrate the acquired companies could have an adverse impact on our business.
  • Our stock price is volatile, and you may not be able to recover your investment if our stock price declines.
  • We may engage in litigation with our franchisees.
  • We must successfully order and manage our Aaron’s Business inventory to reflect customer demand and anticipate changing consumer preferences and buying trends or our revenue and profitability will be adversely affected.
  • We depend on hiring an adequate number of hourly employees to run our business and are subject to government regulations concerning these and our other employees, including wage and hour regulations.
  • The geographic concentration of our Aaron’s stores, as well as those of Progressive Leasing’s retail partners, may magnify the impact of conditions in a particular region, including economic downturns and other occurrences.
  • Vive’s “second-look” credit programs for below-prime consumers differ in significant respects from the risks of Aaron’s store-based lease-to-own business. The risks could have a material negative effect on Progressive Leasing, which could result in a material adverse effect on our entire business.
  • The loss of the services of our key executives, or our inability to attract and retain key talent could have a material adverse impact on our operations.
  • If we fail to establish and maintain effective internal control over financial reporting and disclosure controls and procedures, we may not be able to accurately report our financial results, or report them in a timely manner.
  • 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 adversely impact our profitability.
  • We are subject to sales, income and other taxes, which can be difficult and complex to calculate due to the nature of our various businesses. 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 or misconduct by third parties acting on our behalf, or third parties to whom our Aaron’s Business previously sold certain of its past due customer accounts for the third parties to attempt to collect, could harm us by subjecting us to monetary loss, significant legal liability, regulatory scrutiny and reputational harm.
  • Product safety and quality control issues, including product recalls, could harm our reputation, divert resources, reduce sales and increase costs.
  • We may be alleged to have infringed upon intellectual property rights owned by others, or may be unable to protect our intellectual property.
  • Interest rates on certain of our outstanding indebtedness are tied to LIBOR and may be subject to change.
Management Discussion
  • 1 For the year ended December 31, 2019, the Progressive Leasing provision for returns and uncollectible renewal payments was $274.9 million which was recorded as a reduction to Lease Revenues and Fees as a result of the Company's adoption of ASC 842, Leases. See Note 1 in the accompanying consolidated financial statements for more information regarding the impacts of ASC 842 on the Company's financial results.
  • 1 See the "Use of Non-GAAP Financial Information" section below.
  • Progressive Leasing. Progressive Leasing segment revenues increased primarily due to an annualized 22.3% increase in total invoice volume, which was driven mainly by an increase in invoice volume per active door. The increase was partially offset by the recognition of a provision for returns and uncollectible renewal payments of $274.9 million as a reduction to lease revenues in accordance with ASC 842 beginning in 2019. Calculated on a basis consistent with the January 2019 adoption of ASC 842, Progressive Leasing revenues increased 20.2% during the year ended December 31, 2019 as compared to the prior year.
Content analysis ?
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