Aarons 2014 Annual Report Download - page 44

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Revenues
Information about our revenues by reportable segment is as follows:
Change
Year Ended December 31, 2014 vs. 2013 2013 vs. 2012
(In Thousands) 2014 2013 2012 $ % $ %
REVENUES:
Sales and Lease Ownership1$2,037,101 $2,076,269 $2,068,124 $ (39,168) (1.9)% $ 8,145 .4%
Progressive2549,548 — — 549,548 nmf — —
HomeSmart164,276 62,840 55,226 1,436 2.3 7,614 13.8
Franchise365,902 68,575 66,655 (2,673) (3.9) 1,920 2.9
Manufacturing 104,058 106,523 95,693 (2,465) (2.3) 10,830 11.3
Other 2,969 22,158 19,688 (19,189) (86.6) 2,470 12.5
Revenues of Reportable
Segments 2,823,854 2,336,365 2,305,386 487,489 20.9 30,979 1.3
Elimination of Intersegment
Revenues (102,296) (103,834) (95,150) 1,538 1.5 (8,684)(9.1)
Cash to Accrual Adjustments 3,681 2,100 2,591 1,581 75.3 (491)(19.0)
Total Revenues from
External Customers $2,725,239 $2,234,631 $2,212,827 $ 490,608 22.0 % $ 21,804 1.0%
nmf—Calculation is not meaningful
1 Segment revenue consists of lease revenues and fees, retail sales and non-retail sales.
2 Segment revenue consists of lease revenues and fees.
3 Segment revenue consists of franchise royalties and fees.
Year Ended December 31, 2014 Versus Year Ended December 31, 2013
Sales and Lease Ownership. Sales and Lease Ownership segment revenues decreased $39.2 million to $2.037 billion due to a
$33.1 million, or 2.0%, decrease in lease revenues and fees and a $7.0 million, or 1.9%, decrease in non-retail sales. Lease
revenues and fees within the Sales and Lease Ownership segment decreased due to a 3.0% decrease in same store revenues,
which more than offset the net addition of 16 Sales and Lease Ownership stores since the beginning of 2013. Non-retail sales
decreased primarily due to less demand for product by franchisees.
Progressive. Progressive segment revenues were $549.5 million and have been included in the Company’s consolidated results
from the April 14, 2014 acquisition date.
HomeSmart. HomeSmart segment revenues increased $1.4 million to $64.3 million due to a $1.3 million, or 2.2%, increase in
lease revenues and fees. Lease revenues and fees within the HomeSmart segment increased due to a net addition of five
HomeSmart stores since the beginning of 2013.
Franchise. Franchise segment revenues decreased $2.7 million to $65.9 million primarily due to a decrease in finance fees
under the franchise loan program.
Other. Revenues in the Other segment are primarily revenues attributable to (i) the RIMCO segment through the date of sale in
January 2014, (ii) leasing space to unrelated third parties in the corporate headquarters building and (iii) several minor
unrelated activities.
Year Ended December 31, 2013 Versus Year Ended December 31, 2012
Sales and Lease Ownership. Sales and Lease Ownership segment revenues increased $8.1 million to $2.076 billion due to a
$63.0 million, or 3.9%, increase in lease revenues and fees, partially offset by a $56.8 million, or 13.3%, decrease in non-retail
sales. Lease revenues and fees within the Sales and Lease Ownership segment increased due to a net addition of 118 Company-
operated stores since the beginning of 2012 and a .6% increase in same store revenues. Non-retail sales decreased primarily due
to less demand for product by franchisees.
HomeSmart. HomeSmart segment revenues increased $7.6 million to $62.8 million due to $7.2 million, or 13.3%, increase in
lease revenues and fees. Lease revenues and fees within the HomeSmart segment increased due to a net addition of 10
HomeSmart stores since the beginning of 2012 and a 9.3% increase in same store revenues.