TEST - The Aaron’s Company, Inc. Reports Third Quarter 2022 Financial Results

Company Raises Midpoint of Full Year Outlook

ATLANTA--(BUSINESS WIRE)--The Aaron's Company, Inc. (NYSE: AAN) today released its third quarter 2022 financial results.

Consolidated Results	• Revenues were $593.4 million, an increase of 31.2%, benefiting from the BrandsMart acquisition
	• Net loss was $15.6 million; Adjusted net earnings^1 were $9.7 million
	• Adjusted EBITDA1 was $35.2 million, a decrease of 34.3%
	• Loss per share was $0.51; Non-GAAP EPS1 was $0.31
Key Items	• Aaron's Business same-store revenues decreased 7.7% compared to an increase of 4.6% in the prior year quarter
	• BrandsMart product sales^2 decreased 0.5% compared to an increase of 9.6% in the prior year quarter
	• E-commerce revenue grew year-over-year by 11.1% at the Aaron's Business and by 18.0% at BrandsMart^2
	• The Aaron's Business opened its 200th GenNext location in October

Third Quarter Highlights^3

CEO Commentary

• Consolidated revenues were $593.4 million, compared with $452.2 million • Consolidated adjusted EBITDA1 was $35.2 million, a decrease of $18.4 million • Aaron’s Business revenues were $412.9 million; adjusted EBITDA1 was $42.5 million • Lease portfolio size for the Aaron’s Business was $125.8 million at quarter end, a decrease of 4.8% • BrandsMart revenues were $183.3 million; adjusted EBITDA1 was $6.6 million • Adjusted free cash flow4 was $50.1 million, an increase of $40.6 million • Initiated a new operational efficiency and optimization restructuring program

"This quarter we delivered solid financial results in what remains a challenging economic environment. Our ongoing strategic investments in centralized lease decisioning, e-commerce, the GenNext store program, and BrandsMart all contributed to these positive results as we continue to transform our customers' in-store and digital experience. We have raised the midpoint of our full year 2022 consolidated revenue and earnings outlook provided in July." Douglas Lindsay CEO, The Aaron's Company, Inc.

1. Item is a Non-GAAP financial measure. Refer to the "Use of Non-GAAP Financial Information" and supporting reconciliation tables below.

2. This metric is unaudited and includes a comparison to a period in which the BrandsMart business was not owned by The Aaron's Company, Inc.

3. Comparative to the prior year period unless otherwise stated.

4. Item is a Non-GAAP financial measure. Refer to the "Adjusted Free Cash Flow" reconciliation table on page 2.