ATLANTA - Aaron's, Inc. (NYSE: AAN), which manufactures furniture for sale and lease, said third quarter revenue rose slightly to $769 million, a $2 million over a year ago. Net income rose 21 percent, to $29.5 million.
"Our third quarter results benefited from strong lease portfolio performance at Progressive and disciplined execution in our core business," said John Robinson, Chief Executive Officer. "Consolidated EBITDA increased 23% on an adjusted basis, representing a 9.9% adjusted EBITDA margin compared with 8.1% a year ago. Total revenue gained slightly, impacted by a soft environment for our core business."
"The core business remains challenging," said John RObinson, CEO. "Ongoing efforts to manage costs and control inventory levels helped offset a decline in same store revenues, and we're taking additional steps to rightsize our store base."
Aaron's operates furniture and mattress factories and leases furniture and appliances with an option to buy. It's furniture production is sizeable, operated under the Woodhaven brand, which is also sold through other retailers. The Woodhaven division consists of five furniture manufacturing plants and nine bedding manufacturing facilities totaling approximately 818,000 square feet of manufacturing capacity.
During the first nine months of 2016, revenues increased 2.3 percent to $2.413 billion. In May, Aaron's completed the sale of the assets of its HomeSmart division. Revenues for the HomeSmart business through May 13, 2016 were $25.4 million. Excluding the sale of HomeSmart, revenues for the core business decreased 6.7 last quarter.
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