0 Q2 2023 Earnings Results July 31, 2023 Exhibit 99.2
Special Note Regarding Forward-Looking Information Statements in this presentation regarding our business that are not historical facts are “forward-looking statements” that involve risks and uncertainties which could cause actual results to differ materially from those contained in the forward-looking statements. Such forward-looking statements generally can be identified by the use of forward-looking terminology, such as "believe," "expect," "expectation," "anticipate," "may," "could," "should", "intend," "belief," "estimate," "plan," "target," "project," "likely," "will," "forecast,", "future", "outlook," and similar expressions. These risks and uncertainties include factors such as (i) factors impacting consumer spending, including the current inflationary environment, general macroeconomic conditions and rising interest rates; (ii) the possibility that the operational, strategic and shareholder value creation opportunities expected from the separation and spin-off of the Aaron’s Business(as described in the 2022 Annual Report) into what is now The Aaron’s Company, Inc. may not be achieved in a timely manner, or at all; (iii) the failure of that separation to qualify for the expected tax treatment; (iv) the risk that the Company may fail to realize the benefits expected from the acquisition of BrandsMart U.S.A., including projected synergies; (v) risks related to the disruption of management time from ongoing business operations due to the BrandsMart U.S.A. acquisition; (vi) failure to promptly and effectively integrate the BrandsMart U.S.A. acquisition; (vii) the effect of the BrandsMart U.S.A. acquisition on our operating results and businesses and on the ability of Aaron's and BrandsMart to retain and hire key personnel or maintain relationships with suppliers; (viii) changes in the enforcement and interpretation of existing laws and regulations and the adoption of new laws and regulations that may unfavorably impact our business; (ix) legal and regulatory proceedings and investigations, including those related to consumer protection laws and regulations, customer privacy, third party and employee fraud, and information security; (x) the risks associated with our strategy and strategic priorities not being successful, including our e-commerce and real estate repositioning and optimization initiatives or being more costly than anticipated; (xi) risks associated with the challenges faced by our business, including the commoditization of consumer electronics, our high fixed-cost operating model and the ongoing labor shortage; (xii) increased competition from traditional and virtual lease-to-own competitors, as well as from traditional and online retailers and other competitors; (xiii) financial challenges faced by our franchisees; (xiv) increases in lease merchandise write-offs; (xv) the availability and prices of supply chain resources, including products and transportation; (xvi) business disruptions due to political or economic instability due to the ongoing conflict between Russia and Ukraine; and (xvii) the other risks and uncertainties discussed under “Risk Factors” in the Company’s most recent Annual Report on Form 10-K. Statements in this presentation that are “forward-looking” include without limitation statements about: (i) the execution of our key strategic priorities; (ii) the growth and other benefits we expect from executing those priorities; (iii) our financial performance outlook; and (iv) the Company’s goals, plans, expectations, and projections regarding the expected benefits of the BrandsMart acquisition. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Except as required by law, the Company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances after the date of this presentation. 1
“I am pleased that we delivered second quarter consolidated company results ahead of our earnings expectations despite the ongoing challenging demand environment for large ticket consumer durable goods. Our lease portfolio performed well and ended the quarter larger than expected. We continued to execute on our strategic growth and cost reduction initiatives, while generating strong free cash flow and further improving the strength of our balance sheet.” Douglas Lindsay CEO, The Aaron’s Company, Inc. CEO Comments 2
Q2 2023 Key Themes 3 ▪ Consolidated earnings were ahead of internal expectations, largely due to ongoing expense controls, despite lower revenues in both business segments ▪ Ended the quarter with a larger lease portfolio size than expected, which reflects the ongoing benefits of our lease decisioning optimization at the Aaron’s Business ▪ Continued progress on the Aaron’s Business market optimization initiative by converting and opening more GenNext and Hub & Showroom stores ▪ Operating expenses at both business segments continued to benefit from ongoing cost optimization efforts in the form of reduced personnel costs and other operating expenses ▪ Continued to generate strong cash flow from operations, reduce net debt, and improve the strength of our balance sheet
4 Q2 Highlights
Consolidated Q2 2023 Results of Operations1 5 Three Months Ended June 30, Variance ($ in Thousands, except per share) 2023 2022 $ % or bps Revenues Consolidated $ 530,372 $ 610,384 $ (80,012) (13.1) % Aaron's Business 388,941 430,245 (41,304) (9.6) % BrandsMart 143,776 181,442 (37,666) (20.8) % Gross Profit Consolidated $ 282,272 $ 293,147 $ (10,875) (3.7) % Aaron's Business 246,839 270,611 (23,772) (8.8) % BrandsMart 35,569 22,875 12,694 55.5 % Gross Profit Margin % Consolidated 53.2% 48.0% -- 520 bps Aaron's Business 63.5% 62.9% -- 60 bps BrandsMart 24.7% 12.6% -- 1,210 bps Net Earnings (Loss) Consolidated $ 6,517 $ (5,342) $ 11,859 222.0 % Adjusted EBITDA2 Consolidated $ 42,448 $ 51,161 $ (8,713) (17.0) % Aaron's Business 49,495 48,034 1,461 3.0 % BrandsMart 4,473 10,471 (5,998) (57.3) % Adjusted EBITDA Margin % Consolidated 8.0% 8.4% -- (40) bps Aaron's Business 12.7% 11.2% -- 150 bps BrandsMart 3.1% 5.8% -- (270) bps EPS Diluted EPS $ 0.21 $ (0.17) $ 0.38 223.5 % Non-GAAP Diluted EPS2 $ 0.39 $ 0.79 $ (0.40) (50.6) % Cash Flow Cash Provided by Operating Activities $ 53,404 $ 28,024 $ 25,380 90.6 % Adjusted Free Cash Flow2 $ 36,040 $ 3,689 $ 32,351 877.0 % 1. Consolidated totals include unallocated corporate costs and intersegment elimination amounts 2. Non-GAAP reconciliations of adjusted EBITDA, EPS, and adjusted free cash flow are included in the Appendix
The Aaron’s Company – Consolidated Q2 Highlights1 6 Revenues Adjusted EBITDA Non-GAAP Diluted EPS Adjusted Free Cash Flow • Revenues decreased YoY primarily due to lower lease revenues & fees and retail sales at the Aaron's Business and lower retail sales at BrandsMart • Adjusted EBITDA and adjusted EBITDA margin decreased YoY primarily due to lower revenues at both business segments ‒ Partially offset by lower personnel costs and other operating costs at both business segments as well as lower write-offs at the Aaron's Business • Adjusted free cash flow increased significantly YoY primarily due to higher cash provided by operating activities as a result of lower lease merchandise purchases and improvements in working capital, partially offset by lower adjusted earnings Highlights $610.4M $530.4M Q2 2022 Q2 2023 -13.1% $51.2M $42.4M Q2 2023Q2 2022 -17.0% $0.79 $0.39 Q2 2022 Q2 2023 -50.6% $3.7M $36.0M Q2 2022 Q2 2023 +877.0% Margin % 8.4% 8.0% 1. Non-GAAP reconciliations of adjusted EBITDA, EPS, and adjusted free cash flow are included in the Appendix
Aaron’s Business Q2 Highlights 7 Revenues Adjusted EBITDA1 Lease Portfolio Size Lease Renewal Rate • Revenues decreased YoY primarily due to a smaller lease portfolio size, lower lease renewal rate, fewer exercises of early purchase options, and lower retail sales ‒ E-commerce revenues increased 5.5% YoY, representing 17.9% of lease revenues • Provision for lease merchandise write- offs was 5.4% as compared to 5.7% in the prior year quarter, as a result of the lease decisioning enhancements implemented in prior quarters • Adjusted EBITDA and adjusted EBITDA margin increased YoY, primarily due to higher gross profit margin and lower total operating expenses, including a lower provision for lease merchandise write-offs Highlights $430.2M $388.9M Q2 2022 Q2 2023 -9.6% $48.0M $49.5M Q2 2022 Q2 2023 +3.0% Q2 2022 $119.6M$130.8M Q2 2023 -8.6% 88.5% 88.2% Q2 2022 Q2 2023 -30 bps Margin % 11.2% 12.7% 1. Adjusted EBITDA does not include unallocated corporate expenses; non-GAAP reconciliations are included in the Appendix
Aaron’s Business Q2 Highlights – E-commerce & GenNext Store Strategy 8 % of Lease Revenues 15.4% 17.9% Q2 2022 Q2 2023 +5.5% 17.4% 29.3% Q2 2022 Q2 2023 Q2 2022 Q2 2023 -10.7% 135 222 171 8 36 Q2 2022 230 Q2 2023 Q2’23 Initial Count Opened in the Quarter Q2’22 Initial Count E-commerce Highlights GenNext Store Highlights New Lease Originations1 Revenues % of Revenues2 GenNext Store Count 1. Monthly recurring revenue written into the portfolio resulting from new lease agreements 2. As a percent of lease and retail revenues; excludes GenNext stores open less than one month
Aaron’s Business Q2 Highlights – Non-Renewal Rates & Write-offs1 9 32+ Day Non-Renewal Rate2 Lease Merchandise Write-offs3 1. Based on open stores at the end of the respective period 2. Customers 32+ days non-renewed (i.e., customer did not make renewal payment or return product) at the end of the applicable quarter divided by the customer count at the beginning of the quarter-end month 3. Provision for lease merchandise write-offs as a percentage of lease revenues and fees, the largest component of which is charge-offs • 32+ day non-renewal rate increased 10 bps YoY from Q2 2022 (2.5% vs. 2.4%) ‒ Sequential increase of 90 bps from Q1 2023 (2.5% vs. 1.6%) primarily due to normal seasonal trends • Lease merchandise write-offs improved 30 bps YoY from Q2 2022 (5.4% vs. 5.7%) ‒ Sequential performance was flat as compared to Q1 2023 (5.4% vs. 5.4%) ‒ Improvements primarily due to lease decisioning enhancements Highlights 2.0% 2.3% 1.6% 2.4% 2.9% 2.7% 1.6% 2.5% 1.0 1.5 2.0 2.5 3.0 Q4Q3 Q1 Q2 5.7% 5.4% 5.7% 7.5% 7.1% 5.4% 5.4% 4.0 5.0 6.0 7.0 8.0 Q1Q3 4.9% Q4 Q2 2021-2022 2022-2023 2021-2022 2022-2023
BrandsMart Q2 Highlights 10 Revenues Gross Profit Adjusted EBITDA2 Product Mix3 • Revenues decreased YoY driven primarily by ongoing weaker customer traffic and customer trade down to lower priced products across major categories ‒ Average transaction value decreased 9.6% YoY ‒ E-commerce product sales were 8.1% of total product sales, down from 9.0% in the prior year quarter • Gross profit and gross profit margin % increased YoY, resulting from a one-time non-cash charge for a fair value adjustment to the acquired merchandise deliveries that occurred in the prior year • Adjusted EBITDA and adjusted EBITDA margin % decreased YoY primarily due to lower retail sales, offset by benefits of direct procurement savings, strategic pricing actions, and cost controls • First new store on track to open in Augusta, GA in Q4 2023 Highlights $181.4M $143.8M Q2 2023Q2 2022 -20.8% $10.5M $4.5M Q2 2022 Q2 2023 -57.3% Margin % 5.8% 3.1% $22.9M $35.6M Q2 2022 Q2 2023 +55.5% Margin % 12.6% 24.7% 1. Results prior to Q2 2022 are prior to the April 1, 2022 acquisition date; therefore, Comparable Sales results are not available 2. Adjusted EBITDA does not include unallocated corporate expenses; non-GAAP reconciliations are included in the Appendix 3. Based on merchandise product sales posted in Q2 2023; excludes warranty, installation, delivery, and other service revenues 54%35% 7% Other Electronics Major Appliances 4% Furniture & Mattresses Comparable Sales YoY n/a1 (20.9%)
11 Balance Sheet and Outlook
$379.4 million $4.7 million$186.1 million Balance Sheet and Shareholder Returns Debt (As of 6/30/23) Liquidity2 (As of 6/30/23) Shareholder Returns3 12 1. Non-GAAP reconciliation of net debt is included in the Appendix 2. As of June 30, 2023, the Company had $38.4 million of cash and cash equivalents and $341.0 million of availability under its $375.0 million unsecured credit facility 3. For the three months ended June 30, 2023, the Company paid $3.9 million in dividends and repurchased 66,343 shares of common stock for approximately $0.8 million $38.4 million Cash and Cash Equivalents (As of 6/30/23) Company reduced net debt1 by $30.2 million from the end of Q1 2023 and by $134.4 million from the end of Q2 2022
Updated 2023 Outlook1 13 Current Outlook2 Previous Outlook3 Low High Low High Revenues $2.12 billion $2.22 billion $2.15 billion $2.25 billion Net Earnings $16.8 million $25.5 million $23.8 million $31.6 million Adjusted EBITDA4 $140.0 million $160.0 million $140.0 million $160.0 million Diluted EPS $0.55 $0.80 $0.70 $0.95 Non-GAAP Diluted EPS $1.00 $1.40 $1.00 $1.40 Cash Provided by Operating Activities $164.9 million $180.9 million $163.3 million $179.3 million Capital Expenditures $85.0 million $100.0 million $90.0 million $105.0 million Adjusted Free Cash Flow $85.0 million $95.0 million $75.0 million $85.0 million Revenues $1.50 billion $1.57 billion $1.50 billion $1.57 billion Earnings Before Income Taxes $101.0 million $110.0 million $101.0 million $110.0 million Adjusted EBITDA $170.0 million $185.0 million $170.0 million $185.0 million Revenues $615.0 million $645.0 million $645.0 million $675.0 million Earnings Before Income Taxes $(0.5) million $2.5 million $(0.5) million $2.5 million Adjusted EBITDA $12.5 million $17.5 million $12.5 million $17.5 million Consolidated Aaron’s Business BrandsMart 1. See the “Use of Non-GAAP Financial Information” section included in the Appendix; Consolidated totals include unallocated corporate costs and intersegment elimination amounts 2. The current outlook assumes no significant deterioration in the current retail environment, state of the U.S. economy, or global supply chain, as compared to its current condition 3. As announced in the Form 8-K filed on April 24, 2023 4.Starting in 2023, adjusted EBITDA excludes stock-based compensation expense. All prior period adjusted EBITDA metrics included herein have been adjusted to exclude stock compensation expense for comparability purposes
14 Appendix
15 Company Store Count By Ownership Type Company-Operated Aaron’s Stores by Type (Unaudited) As of June 30, 2023 2022 Company-operated Aaron’s Stores1 1,026 1,060 GenNext (included in Company-Operated) 230 171 Franchise-operated Aaron’s Stores 230 234 BrandsMart U.S.A. Stores2 10 10 Systemwide Stores 1,266 1,304 (Unaudited) As of June 30, 2023 GenNext Legacy Total Store 175 649 824 Hub 48 53 101 Showroom 7 94 101 Total 230 796 1,026 1. The typical layout for a Company-operated Aaron's store is a combination of showroom, customer service and warehouse space, averaging approximately 9,500 square feet. Certain Company- operated Aaron's stores consist solely of a showroom. 2. BrandsMart U.S.A. stores average approximately 100,000 square feet and have been included in this table subsequent to the acquisition date of April 1, 2022.
Use of Non-GAAP Financial Information Non-GAAP net earnings, non-GAAP diluted earnings per share, adjusted free cash flow, net debt, EBITDA and adjusted EBITDA are supplemental measures of our performance that are not calculated in accordance with generally accepted accounting principles in the United States (“GAAP”). Non-GAAP net earnings and non-GAAP diluted earnings per share for 2023 exclude certain charges including amortization expense resulting from acquisitions, restructuring charges, separation costs associated with the separation and distribution transaction that resulted in our spin-off into a separate publicly-traded company and acquisition-related costs. Non-GAAP net earnings and non-GAAP diluted earnings per share for 2022 exclude certain charges including amortization expense resulting from acquisitions, restructuring charges and separation costs associated with the separation and distribution transaction that resulted in our spin-off into a separate publicly-traded company, acquisition-related costs, and a one-time non-cash charge for a fair value adjustment to merchandise inventories. The amounts for these pre-tax non-GAAP adjustments, which are tax-effected using estimated tax rates which are commensurate with non-GAAP pre-tax earnings, can be found in the Reconciliation of Net Earnings and Earnings Per Share Assuming Dilution to Non-GAAP Net Earnings and Non-GAAP Earnings Per Share Assuming Dilution table in this presentation. Beginning in 2023, adjusted EBITDA excludes stock-based compensation expense. For comparability purposes, the prior period adjusted EBITDA results for the three months ended June 30, 2022 shown in the table below has been restated to also exclude stock-based compensation expense. The EBITDA and adjusted EBITDA figures presented in this presentation are calculated as the Company’s earnings before interest expense, depreciation on property, plant and equipment, amortization of intangible assets and income taxes. Adjusted EBITDA also excludes the other adjustments described in the calculation of non-GAAP net earnings above. Adjusted EBITDA margin is defined as adjusted EBITDA as a percentage of revenue. The amounts for these pre-tax non-GAAP adjustments can be found in the Quarterly EBITDA table in this presentation. Management believes that non-GAAP net earnings, non-GAAP diluted earnings per share, EBITDA and adjusted EBITDA provide relevant and useful information, and are widely used by analysts, investors and competitors in our industry as well as by our management in assessing both consolidated and business unit performance. Non-GAAP net earnings and non-GAAP diluted earnings per share provide management and investors with an understanding of the results from the primary operations of our business by excluding the effects of certain items that generally arise from larger, one-time transactions that are not reflective of the ordinary earnings activity of our operations. This measure may be useful to an investor in evaluating the underlying operating performance of our business. EBITDA and Adjusted EBITDA also provide management and investors with an understanding of one aspect of earnings before the impact of investing and financing charges and income taxes. These measures may be useful to an investor in evaluating our operating performance and liquidity because the measures: • Are widely used by investors to measure a company’s operating performance without regard to items excluded from the calculation of such measure, which can vary substantially from company to company depending upon accounting methods, book value of assets, capital structure and the method by which assets were acquired, among other factors. • Are a financial measurement that is used by rating agencies, lenders and other parties to evaluate our creditworthiness. • Are used by our management for various purposes, including as a measure of performance of our operating entities and as a basis for strategic planning and forecasting. The adjusted free cash flow figures presented in this presentation are calculated as the Company’s cash flows provided by operating activities, adjusted for acquisition-related transaction costs and proceeds from real estate transactions, less capital expenditures. Management believes that adjusted free cash flow is an important measure of liquidity, provides relevant and useful information, and is widely used by analysts, investors and competitors in our industry as well as by our management team in assessing liquidity. Net debt represents total debt less cash and cash equivalents. Management believes that net debt is an important measure of liquidity, provides relevant and useful information, and is widely used by analysts, investors and competitors in our industry as well as by our management team in assessing liquidity. Non-GAAP financial measures, however, should not be used as a substitute for, or considered superior to, measures of financial performance prepared in accordance with GAAP, such as the Company’s GAAP basis net earnings and diluted earnings per share, the Company’s GAAP revenues and earnings before income taxes and GAAP cash provided by operating activities, which are also presented in the presentation. Further, we caution investors that amounts presented in accordance with our definitions of non-GAAP net earnings, non-GAAP diluted earnings per share, EBITDA, adjusted EBITDA and adjusted free cash flow may not be comparable to similar measures disclosed by other companies, because not all companies and analysts calculate these measures in the same manner. 16
17 (Unaudited) Three Months Ended June 30, (In Thousands, except per share amounts) 2023 2022 Net Earnings (Loss) $ 6,517 $ (5,342) Income Taxes 1,485 (8,132) Earnings (Loss) Before Income Taxes $ 8,002 $ (13,474) Acquisition-Related Intangible Amortization Expense 2,594 2,782 Restructuring Expenses, Net 4,835 5,582 Separation Costs — 230 Non-Cash Inventory Fair Value Adjustment — 23,023 Acquisition-Related Costs 546 8,033 Non-GAAP Earnings Before Income Taxes 15,977 26,176 Income Taxes, calculated using a non-GAAP Effective Tax Rate 3,743 1,388 Non-GAAP Net Earnings $ 12,234 $ 24,788 Earnings (Loss) Per Share Assuming Dilution $ 0.21 $ (0.17) Acquisition-Related Intangible Amortization Expense 0.08 0.09 Restructuring Expenses, Net 0.15 0.18 Separation Costs — 0.01 Non-Cash Inventory Fair Value Adjustment — 0.74 Acquisition-Related Costs 0.02 0.26 Tax Effect of Non-GAAP Adjustments (0.07) (0.30) Non-GAAP Earnings Per Share Assuming Dilution1 $ 0.39 $ 0.79 Weighted Average Shares Outstanding Assuming Dilution2 31,307 31,222 1. In some cases, the sum of individual EPS amounts may not equal total non-GAAP EPS calculations due to rounding 2. For the three months ended June 30, 2022, the GAAP Weighted Average Shares Assuming Dilution was 30,827 and the Non-GAAP Weighted Average Shares Outstanding Assuming Dilution was 31,222 Reconciliation to Non-GAAP Net Earnings and Non-GAAP Earnings Per Share
Reconciliation to Quarterly Adjusted EBITDA by Segment 18 (Unaudited) (Unaudited) Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 (In Thousands) Aaron’s Business BrandsMart Unallocated Corporate Elimination1 Total Aaron’s Business BrandsMart Unallocated Corporate Elimination1 Total Net Earnings (Loss) $ 6,517 $ (5,342) Income Taxes 1,485 (8,132) Earnings (Loss) Before Income Taxes $ 30,840 $ 1,083 $ (23,833) $ (88) $ 8,002 $ 29,520 $ (15,919) $ (26,736) $ (339) $ (13,474) Interest Expense — — 3,910 — 3,910 — — 2,463 — 2,463 Depreciation 18,287 1,164 222 — 19,673 17,814 1,189 364 — 19,367 Amortization 368 2,226 — — 2,594 700 2,178 — — 2,878 EBITDA $ 49,495 $ 4,473 $ (19,701) $ (88) $ 34,179 $ 48,034 $ (12,552) $ (23,909) $ (339) $ 11,234 Separation Costs — — — — — — — 230 — 230 Restructuring Expenses, Net — — 4,835 — 4,835 — — 5,582 — 5,582 Acquisition-Related Costs — — 546 — 546 — — 8,033 — 8,033 Non-Cash Inventory Fair Value Adjustment — — — — — — 23,023 — — 23,023 Stock-Based Compensation2 — — 2,888 — 2,888 — — 3,059 — 3,059 Adjusted EBITDA $ 49,495 $ 4,473 $ (11,432) $ (88) $ 42,448 $ 48,034 $ 10,471 $ (7,005) $ (339) $ 51,161 1. Intersegment sales between BrandsMart and the Aaron's Business pertaining to BrandsMart Leasing are recognized at retail prices. Since the intersegment profit affects sales, cost of goods sold, depreciation and inventory valuation, they are adjusted when intersegment profit is eliminated in consolidation 2. Beginning in 2023, Adjusted EBITDA excludes stock-based compensation expense. For comparability purposes, the prior period results for the three months ended June 30, 2022 shown in the table above have been restated to also exclude stock-based compensation expense
Reconciliation to Adjusted Free Cash Flow 19 Reconciliation to Net Debt (Unaudited) Three Months Ended June 30, (In Thousands) 2023 2022 Cash Provided by Operating Activities $ 53,404 $ 28,024 Proceeds from Real Estate Transactions 585 681 Acquisition-Related Transaction Costs 3,407 7,568 Capital Expenditures (21,356) (32,584) Adjusted Free Cash Flow $ 36,040 $ 3,689 (Unaudited) June 30, 2023 March 31, 2023 $ Change (In Thousands) Debt $ 186,063 $ 222,113 $ (36,050) Cash and Cash Equivalents (38,369) (44,267) 5,898 Net Debt $ 147,694 $ 177,846 $ (30,152) (Unaudited) June 30, 2023 June 30, 2022 $ Change (In Thousands) Debt $ 186,063 $ 310,332 $ (124,269) Cash and Cash Equivalents (38,369) (28,249) (10,120) Net Debt $ 147,694 $ 282,083 $ (134,389)
Fiscal Year 2023 Ranges (In Thousands) Aaron’s Business BrandsMart Consolidated Total Projected Net Earnings $16,800 - $25,450 Income Taxes $(800) - $550 Projected Earnings Before Income Taxes $101,000 - $110,000 $(500) - $2,500 $16,000 - $26,000 Interest Expense - - $15,000 - $17,000 Depreciation and Amortization $69,000 - $75,000 $13,000 - $15,000 $84,000 - $92,000 Projected EBITDA $170,000 - $185,000 $12,500 - $17,500 $115,500 - $135,500 Stock-Based Compensation - - $12,000 Other Adjustments3 - - $13,000 Projected Adjusted EBITDA $170,000 - $185,000 $12,500 - $17,500 $140,000 - $160,000 Fiscal Year 2023 Ranges Low High Projected Earnings Per Share Assuming Dilution $0.55 $0.80 Sum of Other Adjustments4 $0.45 $0.60 Projected Non-GAAP Earnings Per Share Assuming Dilution $1.00 $1.40 20 Reconciliation to 2023 Current Outlook1 for Adjusted EBITDA2 Fiscal Year 2023 Ranges (In Thousands) Consolidated Total Cash Provided by Operating Activities $164,900 - $180,900 Proceeds from Real Estate Transactions $1,000 - $10,000 Acquisition-Related Transaction Costs $4,100 Capital Expenditures $(85,000) – $(100,000) Adjusted Free Cash Flow $85,000 - $95,000 Reconciliation to 2023 Current Outlook1 for Non-GAAP Earnings Per Share Reconciliation to 2023 Current Outlook1 for Adjusted Free Cash Flow 1. As announced in the Form 8-K filed on July 31, 2023 2. In 2022 and prior periods, adjusted EBITDA included stock-based compensation expense. Starting in 2023, adjusted EBITDA excludes stock-based compensation expense 3. Includes non-GAAP charges related to restructuring charges, separation costs associated with the separation and distribution transaction that resulted in our spin-off into a separate publicly-traded company and acquisition-related costs 4.Includes non-GAAP charges related to restructuring charges, separation costs associated with the separation and distribution transaction that resulted in our spin-off into a separate publicly-traded company, acquisition-related costs and intangible amortization expense resulting from acquisitions
Fiscal Year 2023 Ranges (In Thousands) Aaron’s Business BrandsMart Consolidated Total Projected Net Earnings $23,750 - $31,550 Income Taxes $1,250 - $3,450 Projected Earnings Before Income Taxes $101,000 - $110,000 $(500) – $2,500 $25,000 - $35,000 Interest Expense - - $14,000 - $16,000 Depreciation and Amortization $69,000 - $75,000 $13,000 - $15,000 $82,000 - $90,000 Projected EBITDA $170,000 - $185,000 $12,500 - $17,500 $121,000 - $141,000 Stock-Based Compensation - - $12,000 Other Adjustments3 - - $7,000 Projected Adjusted EBITDA $170,000 - $185,000 $12,500 - $17,500 $140,000 - $160,000 Fiscal Year 2023 Ranges Low High Projected Earnings Per Share Assuming Dilution $0.70 $0.95 Sum of Other Adjustments4 $0.30 $0.45 Projected Non-GAAP Earnings Per Share Assuming Dilution $1.00 $1.40 21 Reconciliation to 2023 Previous Outlook1 for Adjusted EBITDA2 Fiscal Year 2023 Ranges (In Thousands) Consolidated Total Cash Provided by Operating Activities $163,300 - $179,300 Proceeds from Real Estate Transactions $1,000 - $10,000 Acquisition-Related Transaction Costs $700 Capital Expenditures $(90,000) – $(105,000) Adjusted Free Cash Flow $75,000 - $85,000 Reconciliation to 2023 Previous Outlook1 for Non-GAAP Earnings Per Share Reconciliation to 2023 Previous Outlook1 for Adjusted Free Cash Flow 1. As announced in the Form 8-K filed on April 24, 2023 2. In 2022 and prior periods, adjusted EBITDA included stock-based compensation expense. Starting in 2023, adjusted EBITDA excludes stock-based compensation expense 3. Includes non-GAAP charges related to restructuring charges, separation costs associated with the separation and distribution transaction that resulted in our spin-off into a separate publicly-traded company and acquisition-related costs 4.Includes non-GAAP charges related to restructuring charges, separation costs associated with the separation and distribution transaction that resulted in our spin-off into a separate publicly-traded company, acquisition-related costs and intangible amortization expense resulting from acquisitions
22 investor.aarons.com
