Aaron’s FY Net Dives
February 6, 2015,
ATLANTA-Fiscal-year net income for Aaron’s fell 35.2 percent to $78.2 million, as the lease-to-own retailer incurred extra expenses from its acquisition of Progressive Leasing last April.
Added financial and legal advisory costs, restructuring expenses and transaction costs related to the acquisition took a toll on the bottom line, with total expenses for the fiscal year rising 26.3 percent over last year. This total also included a 23.4 percent jump in operating expenses in dollars, and a pickup of 54 basis points in operating expenses as a percentage of sales, to 46.3 percent.
The acquisition did fuel the top line for Aaron’s to the tune of a 22 percent gain in total revenues, which finished the fiscal year ending on Dec. 31 at $2.7 billion. In the fourth quarter, net income dropped 2.6 percent to $22.1 million. Fourth-quarter total revenues were $759.7 million, up 37.2 percent.
Revenues for the new fiscal year should total about $2.05 billion to $2.15 billion, with lease revenues of from $1.55 billion to $1.65 billion, Aaron’s said.