Aaron's Q4 Profit Edges Down, EPS Flat - Quick Facts

(RTTNews) - Aaron's Inc. (AAN) reported that its fourth-quarter 2014 net earnings declined to $22.1 million from $22.7 million a year ago. Earnings per share were $0.30 in both periods.

During the fourth quarter of 2014, pre-tax earnings were negatively impacted by $8.8 million of amortization expense related to the acquisition of Progressive, and $1.5 million in Progressive deferred revenue fair value adjustments.

On a non-GAAP basis, excluding the special charges, costs and expenses described above from all periods, net earnings for the fourth quarter of 2014 would have been $28.7 million compared to $22.7 million for the same period in 2013, and earnings per share assuming dilution would have been $0.39 compared to $0.30 a year ago.

Same store revenues in the core business decreased 2.8% during the fourth quarter of 2014 compared to the fourth quarter of 2013, and customer count on a same store basis was down 4.6%.

Quarterly revenues increased 37% to $759.7 million from $553.9 million for the fourth quarter of 2013. The $205.9 million increase in revenue was due to $220.8 million in revenue from Progressive Leasing, acquired in April 2014, partially offset by a decrease in revenue from Aaron's core business.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.35 per share and revenues of $737.98 million for the quarter. Analysts' estimates typically exclude special items.

Looking ahead for fiscal 2015, the company expects GAAP earnings per share to be in the range of $1.68 to $1.88, adjusted earnings per share of $1.90 to $2.10 ,and Revenues of approximately $3.05 billion to $3.25 billion, excluding revenues of franchisees. Wall Street currently is looking for fiscal year 2015 earnings of $2.15per share on annual revenues of $3.15 billion.