The Aaron's Company, Inc. today released its first quarter 2023 financial results. Complete financial results are available at  investor.aarons.com. Highlights of those results are included below and in the attached supplement.

First Quarter 2023 Consolidated Results:

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Revenues were $554.4 million, an increase of 21.5% due to the BrandsMart acquisition
Net earnings were $12.8 million, a decrease of 40.6%; Non-GAAP net earnings1 were $20.5 million, a decrease of 25.5%
Adjusted EBITDA1,2 was $45.9 million, a decrease of 20.7%
Diluted EPS was $0.41; Non-GAAP diluted EPS1 was $0.66
Updated 2023 full year outlook; raised EPS and adjusted free cash flow
First Quarter 2023 Key Items:

The Aaron's Company

Earnings were ahead of internal expectations, due in part to reduced write-offs and continued implementation of improved expense controls, despite lower revenues in both segments
Reduced net debt by $36.9 million in the quarter primarily due to strong cash provided by operating activities; ended the quarter with cash and cash equivalents of $44.3 million and debt of $222.1 million
Aaron's Business

Softer tax refund season led to fewer exercises of early purchase options, resulting in lower than expected revenue and a larger than expected lease portfolio size to end the quarter
Lease decisioning enhancements led to a 170 bps sequential reduction to the provision for lease merchandise write-offs as a percentage of lease revenues & fees
GenNext stores accounted for approximately 27% of lease revenues & fees and retail sales
E-commerce revenues increased 12.3% as compared to the prior year quarter and represented 17.9% of lease revenues
BrandsMart

Earnings exceeded internal expectations despite lower revenues due to continued pressure on customer demand
First new BrandsMart store planned to open in Augusta, GA in Q4 2023
The Company will host an earnings conference call tomorrow, April 25, 2023, at 8:30 a.m. ET. Chief Executive Officer Douglas A. Lindsay will host the call along with President Steve Olsen and Chief Financial Officer C. Kelly Wall. A live audio webcast of the conference call and presentation slides may be accessed at investor.aarons.com and the hosting website at https://events.q4inc.com/attendee/104089893. A transcript of the webcast will also be available at investor.aarons.com.