Aaron's, Inc. (NYSE:AAN) Q4 2014 Earnings Conference Call - Final Transcript

Feb 06, 2015 • 10:00 am ET


Aaron's, Inc. (NYSE:AAN) Q4 2014 Earnings Conference Call - Final Transcript


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Good morning, and welcome to the Aaron's Fourth Quarter 2014 Earnings Call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. At this time, I'd like to turn it over to Garet Hayes, of Aaron's. Thank you and enjoy your conference. You may proceed.

Garet Hayes

Good morning, everyone. Welcome to our conference call to discuss Aaron's fourth quarter and 2014 company's earnings release issued today. Participating this morning are John Robinson, Aaron's CEO, Gil Danielson, Aaron's CFO, Steve Michaels, Aaron's President, and Ryan Woodley, CEO of Progressive Leasing. All related material including Form 8-K are available on the company's investor relations website investor.aaron.com and this website will be archived replay there as well. Before the results are discussed, I would like to read the Company's Safe Harbor statement. Except for historical information, the matters discussed today are forward-looking statements. As such, they involve a number of risks and uncertainties, which could cause actual results to differ materially from those projected in Aaron's forward-looking statements. These factors include matters such as changes in general economic condition, competition, pricing, customer demand, legal and regulatory proceedings, customer privacy and informational security, risks related to the Company's recent progressive acquisition, risks related to its new strategy and other issues, including those discussed in the Company's SEC filings.

Forward-looking statements that may be discussed today include Aaron's projected results for future periods, Aaron's new strategy, the future effects of the Progressive acquisition and other matters including those listed in the forward-looking statements disclaimer and our earnings press release published today. Listeners are cautioned not to place undue emphasis on forward-looking statements. I will now turn the call over to Aaron's CEO, John Robinson. John?

John Robinson

Thank you, Gareth. Good morning, everyone, and thanks for joining us today. I appreciate the opportunity to talk to you on my first earnings call as CEO of Aaron's. Founded by Charlie Loudermilk, a dynamic and visionary entrepreneur Aaron's is a company with a proud 60-year history of innovation in growth. Over the years, Mr. Loudermilk assembled its group of talented associates and franchisees who together created a highly compelling business model for customers, associates and shareholders. I've spent much of my career admiring the success of Aaron's from the outside, so it's a tremendous honor for me to now be the CEO of this great company.

As many of I joined the company in April of 2014, when Aaron's acquired Progressive leasing, the leading virtual lease to own business in the US. The combination of Aaron's and Progressive brought together the right blend of assets to grow this company into a true omnichannel lease purchase provider. While we have a lot of work to do integrating the two businesses and continuing to adapt to a rapidly changing market place. I am pleased to announce that our overall results for the fourth quarter of 2014 exceeded our expectations. For the fourth quarter of 2014, Aaron's revenue increased 37% to $759.7