Aarons, Inc. (AAN) has reported a 7.27 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $53.30 million, or $0.74 a share in the quarter, compared with $49.69 million, or $0.68 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $57.76 million, or $0.80 a share compared with $52.07 million or $0.71 a share, a year ago.
Revenue during the quarter went down marginally by 1.16 percent to $844.55 million from $854.43 million in the previous year period. Total expenses were 89.76 percent of quarterly revenues, down from 89.94 percent for the same period last year. This has led to an improvement of 18 basis points in operating margin to 10.24 percent.
Operating income for the quarter was $86.49 million, compared with $85.98 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $109.40 million compared with $104.02 million in the prior year period. At the same time, adjusted EBITDA margin improved 78 basis points in the quarter to 12.95 percent from 12.17 percent in the last year period.
"We're very pleased with our first quarter results," said John Robinson, chief executive officer. "Strong performance at Progressive Leasing and solid execution in the Aaron's Business drove increased customer count, lease revenue and earnings in the quarter." "Progressive built on its impressive momentum in door and invoice growth, and its lease portfolio is generating consistently strong performance. We remain optimistic about our ability to continue gaining share in Progressive’s large, addressable market."
Operating cash flow drops significantly
Aarons, Inc. has generated cash of $104.18 million from operating activities during the quarter, down 46.75 percent or $ 91.47 million, when compared with the last year period.
The company has spent $10.68 million cash to meet investing activities during the quarter as against cash inflow of $0.89 million in the last year period.
The company has spent $53.59 million cash to carry out financing activities during the quarter as against cash outgo of $92.58 million in the last year period.
Cash and cash equivalents stood at $348.49 million as on Mar. 31, 2017, up 193.08 percent or $229.58 million from $118.90 million on Mar. 31, 2016.
Debt comes down
Aarons, Inc. has recorded a decline in total debt over the last one year. It stood at $484.72 million as on Mar. 31, 2017, down 6.43 percent or $33.33 million from $518.04 million on Mar. 31, 2016. Long-term debt stood at $484.72 million as on Mar. 31, 2017. Total debt was 18.47 percent of total assets as on Mar. 31, 2017, compared with 20.33 percent on Mar. 31, 2016. Debt to equity ratio was at 0.32 as on Mar. 31, 2017, down from 0.37 as on Mar. 31, 2016. Interest coverage ratio improved to 14.87 for the quarter from 13.62 for the same period last year.
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