Aaron's Inc (AAN) SEC Filing 10-Q Quarterly report for the period ending Sunday, September 30, 2018

EXHIBIT 99.1



Contact:	Aaron’s, Inc.	SCR Partners
	Michael P. Dickerson	Jeff Black
	Vice President, Investor Relations	615.760.3679
	678.402.3950	JBlack@scr-ir.com
	Mike.Dickerson@Aarons.com

Aaron’s, Inc. Reports Record Third Quarter Revenue and Earnings

Reaffirms and Tightens 2018 Annual Outlook


•	Record Third Quarter Consolidated Revenues of $953.1 Million, Up 14%;


•	Record Third Quarter Diluted EPS $0.62; Non-GAAP Diluted EPS $0.69, Up 60%


•	Progressive Leasing Revenues Up 27%; EBITDA Up 32%


•	Aaron's Business Same Store Revenue Flat To Prior Year

ATLANTA, October 25, 2018 - Aaron’s, Inc. (NYSE: AAN), a leading omnichannel provider of lease-purchase solutions, today announced financial results for the three months ended September 30, 2018.

“This quarter demonstrates the strength of our model as we achieved solid growth in both revenue and earnings while we continued to invest in the future growth of our business,” said John Robinson, Chief Executive Officer.

“Progressive achieved 32% EBITDA growth on a 27% increase in revenue, driven by strong invoice volume growth, consistent portfolio performance, and well-managed expenses. In addition, the team continues to execute on the conversion of our robust retail partner pipeline,” continued Mr. Robinson.

“The Aaron’s Business delivered improved same store revenue performance in the quarter, and year-over-year recurring revenue written into the portfolio was positive for the third consecutive quarter. I am proud of the team as they balanced the onboarding of 90 newly acquired franchised stores with the advancement of our business transformation. We continue to be encouraged by the improvements we are seeing in the business and the results of these initiatives,” concluded Mr. Robinson.

The following information was filed by Aaron's Inc on Thursday, October 25, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Aaron's Inc's 10-Q Quarterly Report:

Financial - Income Highlight
The Tax Act, among other things, i lowered the U.S. corporate income tax rate from 35% to 21% effective January 1, 2018 ii provided for 100% expense deduction of certain qualified depreciable assets, including lease merchandise inventory, purchased after September 27, 2017 but would be phased down starting in 2023 and iii failed to extend the manufacturing deduction that expired in 2017 under the terms of previous tax law.

Financial - Income Highlight
The Tax Act, among other things, i lowered the U.S. corporate income tax rate from 35% to 21% effective January 1, 2018 ii provided for 100% expense deduction of certain qualified depreciable assets, including lease merchandise inventory, purchased after September 27, 2017 but would be phased down starting in 2023 and iii failed to extend the manufacturing deduction that expired in 2017 under the terms of previous tax law.
Financial - Expense Highlight
The Tax Act, which was enacted in December 2017, provides for 100% expense deduction of certain qualified depreciable assets, including lease merchandise inventory, purchased by the Company after September 27, 2017 but would be phased down starting in 2023.
Other - Other Highlight
We believe the traditional store-based lease-to-own industry has been negatively impacted in recent periods by: i increased competition from a wide range of competitors, including national, regional and local operators of lease-to-own stores virtual lease-to-own companies traditional and e-commerce retailers and, indirectly, from various types of consumer finance companies that enable our customers to shop at traditional or online retailers ii the challenges faced by many traditional brick-and-mortar retailers, with respect to a decrease in the number of consumers visiting those stores, especially younger consumers iii the continuing economic challenges facing many traditional lease-to-own customers and iv commoditization of pricing in consumer electronics.
Financial - Expense Highlight
Interest expense decreased to $3.7 million in 2018 from $4.7 million in 2017 due primarily to a lower outstanding debt balance during the three months ended September 30, 2018.
Financial - Expense
Interest expense decreased to $11.9...Read more
Financial - Expense
Occupancy costs increased primarily due...Read more
Financial - Expense
Occupancy costs increased primarily due...Read more
M & A - Other
We believe the Progressive Leasing...Read more
Financial - Expense
Other operating expenses increased due...Read more
Revenue - Product
Same store revenues were flat...Read more
Revenue - Product
The decrease in non-retail sales...Read more
Financial - Shares
As of September 30, 2018,...Read more
Financial - Expense
Operating expenses include personnel costs,...Read more
Other - Other
The Company intends to use...Read more
Financial - Dividend
At its November 2017 meeting,...Read more
Financial - Expense
Shipping and handling expense increased...Read more
Financial - Expense
Shipping and handling expense increased...Read more
Financial - Income
Income tax expense decreased to...Read more
Other - Other
We estimate the tax deferral...Read more
Other - Other
In response to these changing...Read more
Revenue - Product
Progressive Leasing segment revenues increased...Read more
Revenue - Product
Progressive Leasing segment revenues increased...Read more
Legal - Other
These risks and uncertainties include...Read more
Financial - Earnings
In each case, adjusted EBITDA...Read more
Revenue - Product
As a percentage of total...Read more
Revenue - Product
As a percentage of total...Read more
Revenue - Product
The Company, through its DAMI...Read more
Financial - Earnings
Progressive Leasings earnings before income...Read more
Financial - Income
Income tax expense decreased to...Read more
Financial - Debt
Debt decreased $71.5 million due...Read more
Financial - Expense
Our revolving credit and term...Read more
Revenue - Product
Progressive Leasing reported revenues of...Read more
Financial - Expense
The increase in personnel costs...Read more
Financial - Expense
Retail cost of sales as...Read more
Revenue - Product
The provision for lease merchandise...Read more
Revenue - Product
The provision for lease merchandise...Read more
Financial - Shares
$9.8 million increase in financing...Read more
Revenue - Product
Aarons Business segment revenues increased...Read more
Revenue - Product
The provision for lease merchandise...Read more
Financial - Earnings
The increase in net cash...Read more
Revenue - Product
The provision for lease merchandise...Read more
Financial - Debt
Additionally, the senior lender notified...Read more
Revenue - Product
DAMI segment revenues increased due...Read more
Revenue - Product
DAMI segment revenues increased due...Read more
Revenue - Product
Progressive Leasings revenue growth is...Read more
Financial - Expense
Non-retail cost of sales as...Read more
Financial - Expense
Retail cost of sales as...Read more
Financial - Expense
Non-retail cost of sales as...Read more
Other - Other
These unfunded commitments arise in...Read more
Revenue - Product
The provision for lease merchandise...Read more
Revenue - Product
The provision for lease merchandise...Read more
Financial - Expense
We also have taken steps...Read more
Revenue - Product
Restructuring activity for the three...Read more
Revenue - Product
This increase was offset by...Read more
Revenue - Product
Adjusting for growth, the first...Read more
Financial - Expense
Other non-operating expense income, net...Read more
Legal - Other
The decrease in the effective...Read more
Legal - Other
decrease in the effective tax...Read more
Revenue - Product
Lease revenues and fees increased...Read more
Other - Other
During the nine months ended...Read more
M & A - Other
As of September 30, 2018,...Read more
Revenue - Product
Progressive Leasings depreciation of lease...Read more
Revenue - Product
The charges are primarily comprised...Read more
Financial - Earnings
Improve Aarons store profitability...Read more
Financial - Debt
During the second quarter of...Read more
Other - Other
However, due to franchisee borrowing...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Document And Entity Information
Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (Parenthetical)
Condensed Consolidated Statements Of Earnings
Condensed Consolidated Statements Of Comprehensive Income
Condensed Consolidated Statements Of Cash Flows
Basis And Summary Of Significant Accounting Policies
Acquisitions
Fair Value Measurement
Loans Receivable
Commitments And Contingencies
Segments
Restructuring
Basis And Summary Of Significant Accounting Policies (Policies)
Basis And Summary Of Significant Accounting Policies (Tables)
Acquisitions (Tables)
Fair Value Measurement (Tables)
Loans Receivable (Tables)
Segments (Tables)
Restructuring (Tables)
Basis And Summary Of Significant Accounting Policies - Narrative (Details)
Basis And Summary Of Significant Accounting Policies - Store Count By Ownership Type (Details)
Basis And Summary Of Significant Accounting Policies - Calculation Of Dilutive Stock Awards (Details)
Basis And Summary Of Significant Accounting Policies - Revenue Recognition Narrative (Details)
Basis And Summary Of Significant Accounting Policies - Investments (Details)
Basis And Summary Of Significant Accounting Policies - Accounts Receivable Net Of Allowances (Details)
Basis And Summary Of Significant Accounting Policies - Components Of The Accounts Receivable Provision (Details)
Basis And Summary Of Significant Accounting Policies - Lease Merchandise (Details)
Basis And Summary Of Significant Accounting Policies - Credit Quality Indicators (Details)
Basis And Summary Of Significant Accounting Policies - Components Of Prepaid Expenses And Other Assets (Details)
Basis And Summary Of Significant Accounting Policies - Assets Held For Sale (Details)
Basis And Summary Of Significant Accounting Policies - Accounts Payable And Accrued Expenses (Details)
Basis And Summary Of Significant Accounting Policies - Debt (Details)
Basis And Summary Of Significant Accounting Policies - Income Taxes (Details)
Basis And Summary Of Significant Accounting Policies - Changes In Accumulated Other Comprehensive Income (Loss) By Component (Details)
Basis And Summary Of Significant Accounting Policies - Related Party Transactions (Details)
Basis And Summary Of Significant Accounting Policies - Supplemental Disclosure Of Noncash Investing Transactions (Details)
Basis And Summary Of Significant Accounting Policies - Hurricane Impact (Details)
Basis And Summary Of Significant Accounting Policies - Recent Accounting Pronouncements (Details)
Acquisitions - Narrative (Details)
Acquisitions - Current Year Franchisee Acquisition (Details)
Acquisitions - Intangibles Acquired In Current Year Acquisition (Details)
Acquisitions - Past Franchisee Acquisition (Details)
Acquisitions - Intangibles Acquired In Past Franchisee Acquisition (Details)
Fair Value Measurement - Summary Of Financial Assets And Liabilities Measured At Fair Value On Recurring Basis (Details)
Fair Value Measurement - Assets Measured At Fair Value On Nonrecurring Basis (Details)
Fair Value Measurement - Fair Value Of Assets (Liabilities) Not Measured At Fair Value In Consolidated Balance Sheets (Details)
Fair Value Measurement - Fair Value Of Assets (Liabilities) Not Measured At Fair Value In Consolidated Balance Sheet - Additional Information (Details)
Loans Receivable - Components Of Loans Receivable, Net (Details)
Loans Receivable - Aging Of The Loans Receivable Balance (Details)
Loans Receivable - Components Of The Allowance For Loan Losses (Details)
Commitments And Contingencies (Details)
Segments - Narrative (Details)
Segments Segments - Revenue By Source And Segment (Details)
Segments - Information On Segments And Reconciliation To Earnings Before Income Taxes From Continuing Operations (Details)
Segments - Information On Segments And Reconciliation To Earnings Before Income Taxes From Continuing Operations- Additional Information (Details)
Restructuring - Narrative (Details)
Restructuring - Summary Of Restructuring Charges (Details)
Restructuring - Summary Of Accruals Of Restructuring Programs (Details)

Material Contracts, Statements, Certifications & more

Aaron's Inc provided additional information to their SEC Filing as exhibits

CIK: 706688
Form Type: 10-Q Quarterly Report
Accession Number: 0000706688-18-000137
Submitted to the SEC: Thu Oct 25 2018 12:25:18 PM EST
Accepted by the SEC: Thu Oct 25 2018
Period: Sunday, September 30, 2018
Industry: Equipment Rental And Leasing