AARON'S INC
investor.aarons.comNo Longer Reporting
The company has not filed an annual or quarterly report since its Q2 FY2020 10-Q, filed Jul 29, 2020. Its latest SEC filing is a SC 13G/A from Nov 9, 2020.
10-Q for Q2 FY2020, filed Jul 29, 2020
The sections below describe the company as of the FY2019 annual report.
What Did They Do?
Provided customers of traditional and online retailers with lease-to-own options for furniture, appliances and electronics. Also leased merchandise through its stores and website, and offered credit products through participating merchants.
10-K for FY2019, filed Feb 20, 2020We offer a proprietary, technology-based application and approval process that does not require Progressive Leasing employees to be staffed…View ↗
Our omnichannel platform allows us to engage customers in ways that are convenient for them by providing them a seamless, direct-to-door…View ↗
Founded in 1983 and acquired by the Company in 2015, Vive primarily serves customers that may not qualify for traditional prime lending who…View ↗
Year Ended December 31, 2019 (In Thousands) Progressive Leasing Aaron's Business4 Vive Total Lease Revenues and Fees1 $ 2,128,133 $…View ↗
How Did They Make Money?
Customers paid for leases in weekly, bi-weekly or monthly installments; merchandise sales brought payment at sale or delivery, and franchise royalties were tied to franchisees’ weekly cash collections. Vive also earned interest and fees on customer loan balances, with customers making periodic monthly minimum payments.
10-K for FY2019, filed Feb 20, 2020Progressive Leasing lease revenues are earned prior to the lease payment due date and are recorded net of related sales taxes as earned.…View ↗
Revenues from the retail sale of merchandise to customers are recognized at the point of sale. Generally, the transfer of control occurs…View ↗
The Company has no current plans to franchise additional Aaron's stores. Current franchisees pay an ongoing royalty of 6% of the weekly…View ↗
The customer is typically required to make monthly minimum payments of at least 3.5% of the outstanding loan balance, which includes…View ↗
Qualifying customers receive a credit card to finance their initial purchase and to use in subsequent purchases at the merchant or other…View ↗
$3.9B
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10-K for FY2019, filed Feb 20, 2020
$3.9B ↗
Who Were Their Customers?
Consumers with limited access to traditional credit leased household goods through Aaron’s stores and Aarons.com; Progressive served shoppers through traditional and online retailers, while Vive offered credit to customers of participating merchants through bank partners.
10-K for FY2019, filed Feb 20, 2020Our customer base is comprised primarily of customers with limited access to traditional credit sources such as bank financing, installment…View ↗
Our omnichannel platform allows us to engage customers in ways that are convenient for them by providing them a seamless, direct-to-door…View ↗
We offer a proprietary, technology-based application and approval process that does not require Progressive Leasing employees to be staffed…View ↗
Founded in 1983 and acquired by the Company in 2015, Vive primarily serves customers that may not qualify for traditional prime lending who…View ↗
We extend or decline credit to an applicant through third-party bank partners based upon the customer's credit rating. Our bank partners…View ↗
Did Revenues Turn Into Profits?
Yes. It kept 1 cent of every revenue dollar as net income in FY2019 and turned 6 cents into free cash flow.
10-K for FY2019, filed Feb 20, 2020
$105.9MView ↗
10-K for FY2019, filed Feb 20, 2020
$31.5MView ↗
10-K for FY2019, filed Feb 20, 2020
$224.2MView ↗
How Were They Changing?
- Net income
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Sources
10-Q for Q2 FY2020, filed Jul 29, 2020
$68.4MView ↗
- ▲ +60%
- vs $42.7M in Q2 FY2019
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Oct 16, 2020
Completed a holding-company merger and moved ownership under HoldCo
Aaron’s became a wholly owned subsidiary of HoldCo, and each Aaron’s share converted into one HoldCo share.
Sources
8-K, filed Oct 16, 2020
On October 16, 2020, Aaron’s completed the holding company formation. In the holding company formation, Aaron’s became a direct, wholly…View ↗
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Jul 29, 2020
Announced plans to separate Progressive Leasing and Aaron’s Business
The plan called for the two businesses to become independent, publicly traded companies.
Sources
8-K, filed Jul 29, 2020
On July 29, 2020, the Company issued a press release announcing its intent to separate its Progressive Leasing and Aaron’s Business…View ↗
Grew. Revenue grew 24% in 4 years, from $3.2B in FY2015 to $3.9B in FY2019, about 6% a year.
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