Aarons 2015 Annual Report Download - page 38

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Revenues
Information about our revenues by reportable segment is as follows:




 



Sales and Lease Ownership1$ 2,001,682
$ 2,037,101
$ 2,076,269
$ (35,419)
(1.7)%
$ (39,168)
(1.9)%
Progressive21,049,681
519,342
—
530,339
102.1
519,342
nmf
HomeSmart163,477
64,276
62,840
(799)
(1.2)
1,436
2.3
DAMI32,845
—
—
2,845
nmf
—
nmf
Franchise463,507
65,902
68,575
(2,395)
(3.6)
(2,673)
(3.9)
Manufacturing 106,020
104,058
106,523
1,962
1.9
(2,465)
(2.3)
Other 1,118
2,969
22,158
(1,851)
(62.3)
(19,189)
(86.6)
Revenues of Reportable Segments 3,288,330
2,793,648
2,336,365
494,682
17.7
457,283
19.6
Elimination of Intersegment
Revenues (103,890)
(102,296)
(103,834)
(1,594)
(1.6)
1,538
1.5
Cash to Accrual Adjustments (4,684)
3,681
2,100
(8,365)
(227.2)
1,581
75.3

 $ 3,179,756
$ 2,695,033
$ 2,234,631
$ 484,723
18.0 %
$ 460,402
20.6 %
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 interest and fees on loans receivable, and excludes the effect of interest expense.
4 Segment revenue consists of franchise royalties and fees.
Year Ended December 31, 2015 Versus Year Ended December 31, 2014
Sales and Lease Ownership. Sales and Lease Ownership segment revenues decreased $35.4 million to $2.002 billion due to a $57.4 million, or 3.5%,
decrease in lease revenues and fees and a $5.3 million, or 14.3%, decrease in retail sales, offset by a $26.4 million, or 7.3%, increase in non-retail sales. Lease
revenues and fees and retail sales decreased partly due to the net reduction of 39 Sales and Lease Ownership stores since the beginning of 2014. In addition,
lease revenues and fees and retail sales were impacted by a 4.2% decrease in same store revenues. In particular, Texas stores, which represent approximately
18% of our store-based revenues, have been down considerably in 2015 due to the effects of contractions in the oil industry on that market. Non-retail sales
increased primarily due to increased demand for product by franchisees.
Progressive. Progressive segment revenues increased $530.3 million to $1.0 billion in 2015, partly due to Progressive's results being included for a full year
compared to a partial year in 2014 from the April 14, 2014 acquisition date. Revenues also increased in 2015 due to increases in invoice volume at existing
active doors as well as a net increase of approximately 941 active doors since the beginning of 2015.
HomeSmart. HomeSmart segment revenues decreased $799,000 to $63.5 million due to a $772,000, or 1.2%, decrease in lease revenues and fees. Lease
revenues and fees within the HomeSmart segment decreased due to a decline of 3.7% in same store revenues, which more than offset the net addition of one
HomeSmart store since the beginning of 2014.
Franchise. Franchise segment revenues decreased $2.4 million to $63.5 million primarily due to a .9% decrease in same store revenues of existing franchised
stores and the impact of the net reduction of 47 franchised stores since the beginning of 2014.
Other. Revenues in the Other category are primarily revenues attributable to leasing space to unrelated third parties in the corporate headquarters building
and several minor unrelated activities.
37