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| AAN > SEC Filings for AAN > Form 8-K on 25-Oct-2012 | All Recent SEC Filings |
25-Oct-2012
Results of Operations and Financial Condition, Financial Statements and Exhibits
On October 25, 2012, Aaron's, Inc. (the "Company") issued a press release to announce its financial results for the third quarter and first nine months of 2012. A copy of the press release is furnished herewith as Exhibit 99.1.
The press release presents the Company's net earnings and diluted earnings per share excluding a $36.5 million charge recorded in the second quarter of 2011 related to a previously announced lawsuit verdict against the Company, and associated legal fees and expenses, and the subsequent reversal into income of $35.5 million of such charge in the first quarter of 2012 related to the settlement of that lawsuit. The press release also presents net earnings and diluted earnings per share excluding a $10.4 million charge to earnings in the third quarter of 2012 for costs related to the previously announced retirement of the Company's founder and executive chairman. These measures are not presented in accordance with generally accepted accounting principles in the United States ("GAAP").
While the lawsuit may not be considered as non-recurring in nature in a strictly accounting sense, management regards the circumstances of this particular lawsuit as infrequent and not arising out of the ordinary course of business. The lawsuit adjustments involve matters that are not entirely susceptible to prediction or effective management.
Similarly, while separation or retirement charges do arise, management regards the size of this particular retirement-related charge for the Company's founder and executive chairman-who had served with the Company for 57 years, including as its chief executive officer from its establishment in 1955 until 2008-as uncommon.
Management consequently believes that presentation of net earnings and diluted earnings per share excluding the recording and subsequent reversal of the lawsuit accrual and the retirement-related charge is useful because it gives investors supplemental information to evaluate and compare the performance of the Company's underlying core business from period to period. Non-GAAP financial measures, however, should not be used as a substitute for, or considered superior to, measures of financial performance prepared in accordance with GAAP, such as the Company's GAAP basis net earnings and diluted earnings per share, which are also presented in the press release.
(d) Exhibits:
Exhibit No. Description
99.1 Aaron's, Inc. press release dated October 25, 2012, announcing the
Company's financial results for the third quarter of 2012
(furnished pursuant to Item 2.02 of Form 8-K).
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