aaron's inc (AAN) Key Developments
Aaron's, Inc. Plans to Close 44 Underperforming Stores in the Third Quarter of 2014
Jul 15 14
Aaron's, Inc. announced that it plans to close 44 underperforming stores in the third quarter of 2014 due to a weaker-than-expected performance of its core business.
Aaron's, Inc. Revises Earnings Guidance for Second Quarter of 2014
Jul 15 14
Aaron's, Inc. revised earnings guidance for second quarter of 2014. Based on preliminary results, the company is expecting revenues for the second quarter of approximately $672 million, slightly below the previous guidance of $675 million, as a result of progressive's strong revenue growth offset by revenue declines in its core business. The company expects GAAP diluted earnings per share in the range of $0.09 to $0.12. Due to lower than expected performance of its core business, the company is revising its adjusted diluted earnings per share guidance to a range of $0.34 to $0.37 from the previous range of $0.43 to $0.48. Adjusted diluted earnings per share is on an adjusted basis that excludes progressive-related amortization expense, progressive-related transaction costs, and other one-time costs and expenses.
Aaron's, Inc. Appoints Matthew E. Avril as Director and Serve on Audit Committee and Compensation Committee of the Board
Jul 10 14
On July 9, 2014, Aaron's, Inc. appointed Matthew E. Avril as a director, effective immediately. Subject to the terms of the Agreement, Avril will serve as a director of the company until the company's annual meeting of shareholders in 2015 and until his successor is elected and qualified or until his earlier resignation, removal from office or death. Avril will serve on the audit committee and the compensation committee of the board.
Aaron's, Inc. Faces Lawsuit for FCRA Background Check Violations
Jul 10 14
Aaron's, Inc. is facing a class action lawsuit for allegedly violating the Federal Credit Reporting Act in regards to background checks. Daniel Antoine, the plaintiff in the case, claims the company failed to provide him with a copy of his FCRA rights and a copy of the consumer report before taking adverse action. Under FCRA rules, employers are required to provide applicants a copy of their FCRA rights and a copy of the background check before taking adverse action using information discovered in the background check. The plaintiff alleges he was not given the copy of the report until after he was denied employment based off information taken from the background check. In addition to not receiving copies of the rights and report, the lawsuit claims the background check had incorrect information and the applicant was not given a chance to dispute the information. The report allegedly showed a felony conviction which the plaintiff claims was incorrect. The company uses a third party to run their background checks, but the credit reporting agency is not involved in the lawsuit. The credit reporting agency offers a FCRA compliance service that sends out pre- adverse action notices. However, Aaron's decided to forgo this option and send out the notices themselves. The lawsuit claims Aaron's consciously decided to ignore the requirement for pre-adverse action notices. The lawsuit states that the plaintiff is entitled to statutory damages of at least $100 and not more than $1,000 for each violation. The plaintiff demands a trial by jury for this case.
Aaron's, Inc. Announces Executive Appointments
May 21 14
Aaron's, Inc. announced that Sharon Lawrence has been named Vice President of Finance and Kirby Salgado joins Aaron's as Vice President of Merchandising. Lawrence, formerly Aaron's Director of Franchise Finance, joined Aaron's in 2012 after a 25+ year career at SunTrust Bank. While at SunTrust she served in a variety of lending and managerial positions throughout the Corporate & Investment Banking Division. Lawrence holds a BBA in Accounting from Georgia State University's J. Mack Robinson College of Business. She will report to Gil Danielson, Aaron's Executive Vice President and Chief Financial Officer. Salgado most recently served as VP/GMM for Sears Holdings where he led the merchandising of the Lawn & Garden categories for both Sears and Kmart. He has also held key roles at fred's Super Dollar, Office Depot and Burdines Department Store where he had a consistent track record of performance and brought greatly improved efficiencies to the merchandising operations.