<SUBMISSION>
<ACCESSION-NUMBER>0001193125-17-149507
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20170428
<ITEMS>2.02
<ITEMS>9.01
<FILING-DATE>20170501
<DATE-OF-FILING-DATE-CHANGE>20170428
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>AARON'S INC
<CIK>0000706688
<ASSIGNED-SIC>7359
<IRS-NUMBER>580687630
<STATE-OF-INCORPORATION>GA
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-13941
<FILM-NUMBER>17798154
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>400 GALLERIA PARKWAY SE
<STREET2>SUITE 300
<CITY>ATLANTA
<STATE>GA
<ZIP>30339
<PHONE>678-402-3000
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>400 GALLERIA PARKWAY SE
<STREET2>SUITE 300
<CITY>ATLANTA
<STATE>GA
<ZIP>30339
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>AARON RENTS INC
<DATE-CHANGED>19920703
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>d375851d8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML><HEAD>
<TITLE>Form 8-K</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">
 <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P>
<P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="margin-top:4pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>SECURITIES AND EXCHANGE COMMISSION
</B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Washington, D.C. 20549 </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>FORM <FONT
STYLE="white-space:nowrap">8-K</FONT> </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>CURRENT
REPORT </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Pursuant to Section&nbsp;13 or 15(d) </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>of the Securities Exchange Act of 1934 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Date of Report (Date of Earliest Event Reported): April&nbsp;28, 2017 </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:24pt; font-family:Times New Roman" ALIGN="center"><B>AARON&#146;S, INC. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(Exact name of Registrant as Specified in its Charter) </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:8pt" ALIGN="center">


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<TD VALIGN="top" ALIGN="center"><B>Georgia</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B><FONT STYLE="white-space:nowrap">1-13941</FONT></B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B><FONT STYLE="white-space:nowrap">58-0687630</FONT></B></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(State or other Jurisdiction of</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Incorporation or Organization)</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Commission</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>File Number)</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(IRS Employer</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Identification No.)</B></P></TD></TR>
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<TD HEIGHT="16" COLSPAN="3"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
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<TD VALIGN="top" COLSPAN="3" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>309 E. Paces Ferry Road, N.E.</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Atlanta, Georgia</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center"><B>30305-2377</B></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top" COLSPAN="3" ALIGN="center"><B>(Address of principal executive offices)</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B>(Zip code)</B></TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Registrant&#146;s telephone number, including area code: (404)
<FONT STYLE="white-space:nowrap">231-0011</FONT> </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Not Applicable </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Former name or former address, if changed since last report) </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Check the appropriate box below if the Form <FONT STYLE="white-space:nowrap">8-K</FONT> filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions (<I>see </I>General Instruction A.2. below): </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9744;</TD>
<TD ALIGN="left" VALIGN="top">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9744;</TD>
<TD ALIGN="left" VALIGN="top">Soliciting material pursuant to Rule <FONT STYLE="white-space:nowrap">14a-12</FONT> under the Exchange Act (17 CFR <FONT STYLE="white-space:nowrap">240.14a-12)</FONT> </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9744;</TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="white-space:nowrap">Pre-commencement</FONT> communications pursuant to Rule <FONT STYLE="white-space:nowrap">14d-2(b)</FONT> under the Exchange Act (17 CFR
<FONT STYLE="white-space:nowrap">240.14d-2(b))</FONT> </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9744;</TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="white-space:nowrap">Pre-commencement</FONT> communications pursuant to Rule <FONT STYLE="white-space:nowrap">13e-4(c)</FONT> under the Exchange Act (17 CFR
<FONT STYLE="white-space:nowrap">240.13e-4(c))</FONT> </TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P>
<P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P>

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<TD WIDTH="10%" VALIGN="top" ALIGN="left"><B>Item&nbsp;2.02</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Results of Operations and Financial Condition. </B></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">On April&nbsp;28, 2017, Aaron&#146;s,
Inc. (the &#147;Company&#148;) conducted a conference call regarding its results of operations for its fiscal quarter ended March&nbsp;31, 2017. A transcript from the Company&#146;s conference call discussing its first quarter results is included as
Exhibit 99.1 to this Current Report on Form <FONT STYLE="white-space:nowrap">8-K,</FONT> which is incorporated herein by reference in its entirety. The information contained in this paragraph, as well as Exhibit 99.1 referenced herein, shall not be
deemed &#147;filed&#148; for purposes of Section&nbsp;18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933. </P>
<P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="10%" VALIGN="top" ALIGN="left"><B>ITEM&nbsp;9.01.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>FINANCIAL STATEMENTS AND EXHIBITS </B></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>(d)</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Exhibits: </B></TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="bottom" NOWRAP ALIGN="center"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00pt solid #000000; width:39.10pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Exhibit&nbsp;No.</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00pt solid #000000; width:39.50pt; font-size:8pt; font-family:Times New Roman"><B>Description</B></P></TD></TR>


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<TD VALIGN="top" NOWRAP>99.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Conference call transcript dated April&nbsp;28, 2017.</TD></TR>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>SIGNATURES </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
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<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3">AARON&#146;S, INC.</TD></TR>
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<TD VALIGN="bottom">By:</TD>
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<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Steven A. Michaels</P></TD></TR>
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<TD VALIGN="bottom">&nbsp;</TD>
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<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
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<TD VALIGN="bottom">Steven A. Michaels</TD></TR>
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<TD VALIGN="bottom">Chief Financial Officer and</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Date: April&nbsp;28, 2017</TD>
<TD VALIGN="bottom">&nbsp;</TD>
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<TD VALIGN="bottom">President of Strategic Operations</TD></TR>
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<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>d375851dex991.htm
<DESCRIPTION>EX-99.1
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<HTML><HEAD>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 99.1 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Aaron&#146;s (AAN) CEO John Robinson on Q1 2017 Results - Earnings Call Transcript </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Aaron&#146;s Inc. (NYSE:<U>AAN</U>) </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Q1 2017 Earnings Conference
Call </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">April&nbsp;28, 2017, 08:30 AM ET </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Executives
</B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Kelly Wall &#150; Vice President Finance, Investor Relations&nbsp;&amp; Treasury </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">John Robinson &#150; President, Chief Executive Officer </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Douglas Lindsay &#150; President, Sales&nbsp;&amp; Lease Ownership </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Steven Michaels &#150; Chief Financial Officer and President of Strategic Operations </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Ryan Woodley &#150; Chief Executive Officer of Progressive Leasing </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Analysts </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Budd Bugatch &#150; Raymond James </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Bradley Thomas &#150; KeyBanc Capital Markets </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Laura Champine
&#150; Roe Equity Research </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Vincent Caintic &#150; Stephens </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">John Baugh &#150; Stifel </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Kyle Joseph &#150; Jefferies </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Anthony Chukumba &#150; Loop Capital Markets </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">David Magee
&#150; SunTrust </P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Operator </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Good morning. Welcome to the Aaron&#146;s, Inc. First Quarter 2017 Earnings Conference Call. All participants will be in listen-only mode. [Operator
Instructions] After today&#146;s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Participating this morning are John Robinson, Aaron&#146;s Inc. President and CEO, Douglas Lindsay, President of Aaron&#146;s Sales and Lease Ownership; Steve
Michaels, Aaron&#146;s Inc. CFO and President of Strategic Operations; and Ryan Woodley, CEO of Progressive Leasing. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Now, I would like to introduce Kelly
Wall, Vice President, Investor Relations&nbsp;&amp; Treasury. You may proceed. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Kelly Wall </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Thank you and good morning, everyone. Welcome to our conference call to discuss Aaron&#146;s first quarter results which were released today. All related
material, including Form 8-K are available on the company&#146;s Investor Relations website, investor.aarons.com, and this webcast will be archived for replay there as well. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Before the results are discussed, I&#146;ll remind investors about the Safe Harbor statement. Except for historical information, matters discussed today are
forward-looking statements. As such, they involve a number of risks and uncertainties, which could cause actual results to differ materially from those predicted in Aaron&#146;s forward-looking statements. Please see our SEC filings for certain
risks inherent in our business that may cause actual results to differ. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Forward-looking statements that may be discussed today include Aaron&#146;s and
Progressive&#146;s projected results for future periods, Aaron&#146;s strategy, and other matters, including those listed in the forward-looking statement disclaimer in our earnings press release published today. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Listeners are cautioned not to place undue emphasis on forward-looking statements, and we undertake no obligation
to update any such statements. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">During this call, we will also be referring to certain non-GAAP financial measures, including adjusted EBITDA, non-GAAP
net earnings, non-GAAP EPS, which have been adjusted for certain items, which may affect the comparability of our performance in other companies. These non-GAAP measures are detailed in the reconciliation tables included with our earnings release.
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">I will now turn the call over to Aaron&#146;s CEO, John Robinson. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>John Robinson </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Thanks, Kelly. And thank you all for
joining us this morning. We&#146;re very pleased with our results for the first quarter. Non-GAAP EPS grew 13% driven by solid execution across all of our businesses. Leveraging our best-in-class platform, we continue to execute our strategy to
serve credit challenged customers through multiple channels and we ended the quarter with 1.6&nbsp;million customers, a new record for the company. We began 2017 with positive momentum and we&#146;re excited about the progress we&#146;re making.
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Progressive had an excellent start to the year with another increase in door growth and a 20% increase in invoice volume. We experienced door growth
across all of our verticals, added a number of strong retail partners and continue to build a solid pipeline of potential new partners. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We are continuing
to run a disciplined business with lease portfolios that are generating consistent performance. We&#146;re working closely with our retail partners to drive superior results, which is a key reason we&#146;re seeing so much success. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We&#146;re encouraged about the Aaron&#146;s business. We&#146;re continuing to add talent to the Aaron&#146;s
team our efforts to drive operational discipline are starting to pay off. In addition, we&#146;re making strategic investments to address changes in shopping preferences and enhance the customer experience. Our stores e-commerce platform and supply
chain network are important strategic advantages and we believe the various initiatives we are exploring have the potential to return the business to long-term growth. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Our balance sheet is in great shape. We repurchased $34 million in stock in the first quarter and into Q1 with roughly $350 million in cash. Our total debt to
capitalization is approximately 7&nbsp;% which gives us ample flexibility to execute our long-term objectives. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">With that, I&#146;ll turn it over to Ryan.
</P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Ryan Woodley </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Thanks, John. Progressive had a very
strong first quarter, total revenues increased 19% in the quarter to $366 million. Invoice volume was up 20%. Each of these growth rates accelerated from Q4, 2016. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Active doors grew 38% in the quarter. The number of doors that completed a lease with us during the period reached a record total of approximately 18,600.
Invoice per active door was down to 4.8%. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The short term trend in this metric is in line with our prior comments and is the direct result of our
significant increases in new doors, including a large number of mobile locations we on-boarded in Q3 of last year. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">As we demonstrated across 2016, the
lease portfolio continues to benefit from the ongoing discipline enhancements we&#146;re making to the positioning process. Write-offs were 4.8% of revenues in Q1 compared to 5.9% in the fourth quarter of 2016 and 6.2% in the year ago period. While
our goal is not to drive this metric to zero, it&#146;s worth noting that this represents the sixth consecutive quarterly decline in write-offs as a percent of revenues. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Bad debt expense was 8.7% of revenues, a slight improvement from the first quarter of 2016 and the fifth
consecutive quarter of declines in that metric. These values are all within the ranges we target and are supporting the consistently optimized level of decisioning activity for our retail partners. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">EBITDA increased 39% to $48.5 million, as a percent of revenue EBITDA reached 13.2% versus 11.3% in the prior quarter. The improvement was driven by fewer
write-offs and leverage on operating expenses. Gross margin was relatively flat. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Overall the numbers tell a great story. Several quarters of exceptional
door growth are driving accelerating invoice growth which in turn is fuelling accelerating revenue growth. I want to credit Blake and his team for their exceptional performance. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We&#146;re continuing to deliver a high level of service to our existing retail partners, while adding a diverse group of new partners in verticals where we
have years of experience. We&#146;re optimistic about our ability to continue delivering profitable growth. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">I&#146;ll now turn it over to Douglas for
comments on the Aaron&#146;s business. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Douglas Lindsay </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Thanks, Ryan. The Aaron&#146;s business is off to a solid start for 2017 with improving lease margin and greater efficiencies in our cost structure. We&#146;re
all pleased that we managed to flat adjusted EBITDA margin despite a lower top line. The total revenues for the Aaron&#146;s business declined 13% to $470.2 million. That decline was primarily driven by lower agreement balances, lower store count
and the sale of HomeSmart in 2016. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Same store revenues of the Aaron&#146;s business declined 9.3% which was in line with our full year projection. Same
store customer counts declined 5.9%. While the top line remained under-pressure, we&#146;re pleased with the delivery activity and our agreement churn was lower than expected. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We&#146;re happy with both the composition and the levels of our lease portfolio to end the quarter. At the same
time, our collection rates benefited from better execution across the organization. Merchandise write-off in the quarter was 3.5% flat with the first quarter of 2016, which continued the recent trend of improvements in this area. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Our team did a great job executing on our plan in the quarter. We saw positive results from our ongoing initiatives to manage costs, improve lease margins and
drive better collection results. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We&#146;re on track with our goals for customer retention rates for the store is closed in October and we&#146;re in the
process of closing an additional 70 stores in the second quarter. As a reminder, our store consolidation initiative optimizes profitability by adding recurring lease revenue over a smaller fixed cost base. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">As we&#146;ve discussed, we focused the organization on initiatives to improve the customer experience, drive operational excellence and optimize our product
and service offerings. I&#146;m pleased with the progress we&#146;ve made in all these areas. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We&#146;re committed to investing in initiatives that will
drive a long term growth in the Aaron&#146;s business. We&#146;re moving forward with a number of strategic investments which we believe will enhance our direct-to-consumer experience and attract a broader group of customers. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We know the marketplace is changing and I&#146;m pleased with the enthusiasm and the fresh ideas from our leadership team, our store associates and our
franchisees to reshape the Aaron&#146;s business. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">I&#146;ll now turn it to Steve for more color on the financials. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Steven Michaels </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Thanks, Douglas. Now I&#146;ll turn to
the financial details for the quarter. Revenues for the first quarter of 2017 were $844.6 million, down 1.2% over the same period a year ago. Net earnings for the quarter were up 7.3% to $53.3 million versus $49.7 million a year ago. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Net earnings for the first quarter on non-GAAP basis were up 10.9% to $57.8 million compared with $52.1 million
for the same period in 2016. Earnings per share assuming dilution for the first three months ended March&nbsp;31 were $0.74 compared with $0.68 for the same period in &#145;16 and diluted EPS on a non-GAAP basis for the quarter were up 12.7% to
$0.80 in 2017 versus $0.71 in 2016. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Adjusted EBITDA for the company was $1.09.4 million for the first quarter of this year compared to $104 million for
the same period last year. At March&nbsp;31, 2017 the company had $348.5 million of cash on hand compared with $308.6 million of cash at the end of 2016. Cash generated from operating activities was $104.2 million through the three months of 2017.
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Our total debt was reduced $13.1 million during the quarter and at the end of March we had a net debt to capitalization ratio of 6.9% and no outstanding
balance on our $225 million revolving credit facility. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The tax rate in the quarter was 35.5% versus 37.7% in the year ago quarter. During the quarter, we
repurchased 1,208,466 shares of common stock for $34.3 million. We currently have authorization to purchase an additional 7,915,235 shares. Consolidated customer count increased 2% to 1,584,000 at March&nbsp;31, 2017, up from 1,551,000 a year ago.
The company outlook remains unchanged for 2017 </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">I&#146;ll turn it back to John, before we move on to Q&amp;A. John? </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>John Robinson </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Thank you, Steve. We continue to be
excited about the large market opportunity for our company. Aaron&#146;s has a long history of innovation and we&#146;re working hard to maintain our leadership position in the industry. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">I want to close the call by thanking all of our associates, franchisees and retail partners for your efforts to
deliver the best value proposition to our customers. We appreciate your commitment and all you do to make Aaron such a success. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">With that, I&#146;ll turn
it to the operator for Q&amp;A. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Question-and-Answer Session </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Operator </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We will now begin the question-and-answer
session. [Operator Instructions] The first question comes from Budd Bugatch of Raymond James. Please go ahead. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Unidentified Analyst </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Good morning. This is David on for Budd. Thank you for taking my questions. First I wanted to ask about the active doors in Progressive, the number of doors
are increasing nicely, invoice volume per active door continues to decline. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">You mentioned this was due to adding new doors and kind of a ramping profile.
Any idea when we would see the metrics for invoice volume per active door either start to improve or at least flatten out year-over-year? </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Ryan Woodley
</B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Yes, good. Appreciate the question. Ryan, here. And that&#146;s given the fact that it&#146;s driven by that big increase in active doors, you&#146;ll
expect to see that start to flatten out or start to improve when we start comping that large introduction we made and I reference specifically introduction that started in Q3 last year with large number of mobile locations. So our expectation is
you&#146;ll see improvement in that metric in the back half of the year. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Unidentified Analyst </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Okay. And how was the average ticket for these new doors. Has it been less than the previous ticket or is it roughly the same and are they in the same product
category that you&#146;ve been in historically? </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Ryan Woodley </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Same product categories, all these verticals we&#146;ve been in for years and within a vertical tickets productions very consistent. What you see is the effect
of a shift in mix over time. And so verticals with smaller tickets blending into the mix pulling production down a little bit, but we love all those doors. The production profile of all those doors is healthy and good with respect to their own
vertical. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Unidentified Analyst </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Okay. Thank you. And
then turning to operating expense, I&#146;m sure the large number of store closures last quarter had an impact on it. But can you talk about some of the buckets where you&#146;re seeing costs come down? </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Douglas Lindsay </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Sure. This is Douglas. It&#146;s
primarily operating expense, some of the savings that we put in place at our store support center last year kicking in, in full in the quarter and then a lot of work around the labor piece of the business, just getting more efficient, given the
revenue of the stores we have in place. That&#146;s mainly labor and the overhead structure. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Unidentified Analyst </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Thank you. Then my last one and I&#146;ll get back in the queue. Can you just talk about your priority for use of capital now that you&#146;ve got your balance
sheet in really good shape? Any thoughts on acquisitions or how you plan to use capital on the balance sheet? </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>John Robinson </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Yes. This is John. You know, we&#146;d like to maintain a conservative capital structure. We think it serve the company well over a long period of time. Having
said that, we also have a history of returning capital to shareholders. And as you saw in the quarter we bought shares back and we will continue - we expect to continue to return capital to shareholders through dividends and share buyback in the
future. We have an outstanding authorization on share buyback. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">In terms of acquisition you know, we keep our eye on what&#146;s going on in the market.
We always want to look for ways to improve our suite of products in attractive markets. And so we&#146;ll continue to work there and explore all the alternatives that we think can enhance our offering and just try to be opportunistic and make smart
moves and make good long-term sense for the business. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Unidentified Analyst </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Great. Thanks for taking my questions and good luck going forward. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>John Robinson </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Thank you. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Douglas Lindsay </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Thank you. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Operator </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The next question comes from Bradley Thomas of
KeyBanc Capital Markets. Please go ahead. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Bradley Thomas </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Yes. Good morning and congratulations on the strong quarter here. I wanted to follow up about the door growth in Progressive, I know you&#146;re not going to
want to name individual customers that you&#146;ve just signed. But could you give us a little bit more color around perhaps some of the industries that you&#146;re seeing more success you know, adding doors in? </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Ryan Woodley </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Yes. Ryan, here. What was great about this period, I guess similar to what we had seen in other recent quarters as we generated door growth in each of our
verticals. So we were happy to see that the growth in new doors was broad based and all of the verticals that we target we saw nice growth which we were pleased to see. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Bradley Thomas </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Great. And then if I could follow up
Ryan, and get a little bit more color on the strong performance of the portfolio, the Progressive portfolio and bringing down the write-offs. This is obviously a contrast to what we&#146;re seeing out of some of the more traditional credit
companies, as Synchrony this morning, Capital One earlier this week that is showing delinquencies moving up and charge offs moving up. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">You know,
what&#146;s the secret sauce here, what is that you all are doing, in terms of decisioning and how much is it helping that you can leverage the existing Aaron&#146;s network as well? Thank you. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Ryan Woodley </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">I appreciate the question. I think what
I&#146;ve seen as the quarter has played out and is consistent with prior quarters, we&#146;ve benefited from consistent enhancement that our decisioning team is making on the front end. So as that relates to a decisioning applications coming
through the door. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">And then our operations team on the back end is performing extremely well. So that&#146;s folks in the call center, in our customer
payment assistance team and folks out in the field in our customer service hubs, all of those groups are performing extremely well and I think that&#146;s generating the results we&#146;re seeing. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>John Robinson </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">And Brad, this is John. I had one thing. One of the big opportunities for us that we realized to some extent that has we believe a lot more opportunity is
leveraging the decisioning technologies for aarons.com, our e-commerce site which is been a big help in that offering in that business and also in our stores, we think there&#146;s a potential - we&#146;re doing a lot of customer research, and
believe there&#146;s potential to streamline the process significantly in our stores on the front end and we think our decisioning technology at Progressive that can help and we&#146;re making progress down that road which we&#146;re encouraged
about. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Bradley Thomas </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">That&#146;s great. Thank you
very much. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>John Robinson </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Thanks, Brad. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Operator </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Your next question comes from Laura Champine of
Roe Equity Research. Please go ahead. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Laura Champine </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Good morning. My question is on franchise sales. Non-retail sales were down a lot which sometimes indicates weakness in franchise sales and sometimes is just
an inventory adjustment. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Can you give us the trend or where the franchise same store sales actually were in Q1? </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Douglas Lindsay </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Yes, sure. Hey Laura, this is Douglas
Lindsay. So our non-retail sales were down. That was a combination of our franchise sales being down on a comp store basis. Also there was about a 6% decline in our franchise store count which was also impacting that number. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">And then lastly there was a slight delay in tax season as you know this year which caused a delay in the ordering
that we would normally see in the quarter and I think all those things combined to contribute to that of number. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Laura Champine </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Got it. Thank you. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Operator </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The next question comes from Vincent Caintic of Stephens. Please go ahead. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Vincent Caintic </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Hey, thanks. Good morning, guys. And I
have two questions one for the Aaron&#146;s business and the other for Progressive. First on the Aaron&#146;s business, the same store sales were at the lower end of the full year guidance for decline, so the 8 to 12% and I was just wondering as
you&#146;re putting in no more products and more initiatives that direct to consumer and so forth that there might be upside to that same store sales decline and maybe when the cadence should be for an improvement to same store sales? </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>John Robinson </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Yes. So Vincent, this is John. I&#146;ll
give it a shot and Douglas fill free to jump in. Internally, we are very optimistic about the direct to consumer model, as you just highlighted and we think we ultimately serve about a third, 25% to 30% of the population roughly, is our customer and
so we do believe that the direct to consumer model is very attractive long-term and having a full suite of products in attractive markets is &#150; makes a lot of sense to us going forward. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">In terms of our comps you know, those are lagging and it&#146;s a function of delivery activity in churn inside
the portfolio. And so we&#146;re not changing our guidance on that right now. And we think this direct to consumer kind of the transformation we&#146;re going to make in our business is going to take a number of quarters. And so you know we are not
changing our guidance right now for comps for the year. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Vincent Caintic </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Okay. Got it. And then on the Progressive side, the doors have been improving and that&#146;s great and I saw that that you&#146;ve won an account from one of
your competitors, so we saw Conn&#146;s went over to you with an exclusive relationship. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">And I was just wondering broadly how the retail environment is
doing for being able to get more active doors there and maybe if there&#146;s opportunity from others having weakness here? Thanks. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Ryan Woodley
</B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Appreciate the question. Ryan, here. We tend to as you know refrain from commenting on specific retailers. But I acknowledge the press release went on
the relationship with Conn&#146;s. We&#146;re really excited about that. We&#146;ve known Norm, Mike and Lee for some time now and very pleased they chose Progressive. We think that will be a great opportunity for both companies. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">And we continue to believe this is a large addressable market. You know, the currently served portion of the market is small relative to the total opportunity
out there that we sized north of 20&nbsp;million in the past and only a few billion of that that is served today and I think that is what you see driving the strong growth in active doors and I expect that to continue to happen. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">It remains a competitive marketplace. I wouldn&#146;t say there&#146;s been a material shift in the competitive landscape in the last quarter, it just remains
consistently competitive with what we&#146;ve seen in the past. Smaller </P>

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competitors do have a propensity to be somewhat disappointed when it comes to pricing and underwriting, but that&#146;s nothing new unfortunately and we just try and focus on delivering the best
customer experience possible. And we know that everything else will follow from that. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Vincent Caintic </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Great, thank you. And John maybe just one last broader question and touching on the acquisition potential just because it&#146;s in the industry that there
might be somebody potentially up for sale. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">But when you&#146;re thinking about what types of acquisitions you might entertain, I think one of the early
answers was in technology, but is there anything else you would look at or is that really the sort of capability enhancements that you would be entertaining? Thanks. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>John Robinson </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Good question, Vincent. We look across a
lot of different areas. Frankly I mean, the technology is certainly attractive to the extent it can help broaden our product offering or streamline the experience for the customer somehow. So we&#146;re always interested in improving there. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">But having said that, we&#146;re also interested in building our presence in attractive markets. We can do that externally, we can do it internally. We have a
lot of opportunity there within our own network to do that as well. So I&#146;d say we&#146;re very broad in terms of the thinking we have around acquisitions. We just want to make sure they make good sense for us and leave us in a better position
than before we make the acquisition. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">And we also want to maintain our conservatism in our balance sheet because company has had a history that over a
long period of time and its allowed us to innovate, it&#146;s also allowed us to weather a lot of different economic environments and so we think it&#146;s important for us to maintain that as well. So we&#146;re kind of balancing those things I
guess. </P>

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<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Okay. That&#146;s very helpful. Thanks so much guys. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>John
Robinson </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Thank you. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Douglas Lindsay </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Thank you. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Operator </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The next question comes from John Baugh of Stifel. Please go ahead. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>John Baugh </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Good morning. Thanks for taking my questions.
I guess the first one I&#146;ll direct to Douglas and there was commentary around agreement churn and portfolio exiting the quarter and - I don&#146;t know - we had strange tax season. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Can you just maybe tell us a little bit about the various metrics on the core business, core store business and you know why you felt better, it sounds like
coming out of the quarter and or what you&#146;ve seen in April that confirms that? Thank you. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Douglas Lindsay </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Sure. No problem, John. So to my comments earlier, we did have better deliveries and expected churn than we expected. As you know tax season was delayed and
despite that delay we saw better delivery activity coming out of February and end of March than we had hoped for which was great. So there is certainly liquidity in the marketplace place and people were entering into leases. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">At the same time we saw better collections than we anticipated as well. So many of our customers were making payments or catching up on payments
</P>

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during the quarter coming out the holidays and that was great. Collections continue to improve both because of execution and because of liquidity. But the thing we also saw was buyouts were less,
so we saw fewer customers this year buying out their agreements, either on time or early. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">And that was a change for us in tax season, many of our
customers pay off their agreements early. We did not see as much of that this year. So that is what we considered churn in the portfolio. So that lack of churn lead to higher agreement balances than we anticipated at the end of the quarter. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">And so more customers are in an agreement going forward coming out of the quarter. And we have a better book. At the same time, we also saw our charge-offs
being lower, which is a function of collections and folks catching up on the payment. So, overall pleased with the quarter and happy with the metrics across the business. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>John Baugh </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">That&#146;s helpful. Thank you. And then, I
guess a question directed to both sides of the business, but obviously the OpEx number was extremely impressive and I was wondering if maybe you guys could buy Progressive versus Core and I think Douglas you addressed it a little bit earlier. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">But you know, you mentioned labor and overhead. I&#146;m just curious will that continue. And then on the Progressive side, I think there&#146;s been some
leverage, some commentary on what happened there in the quarter as well as prospectively? </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Douglas Lindsay </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">I&#146;ll take the store side of things. So the reduction OpEx you saw there in the quarter some of that and I believe the previous question was about
excluding store closure, so some of that was store closures, the 56 stores we closed and merged last year benefiting us in the quarter, as well as the comping of the HomeSmart elimination of that OpEx. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">But when you exclude those two things, it was labor. We continued to work at being more efficient. Our labor
model reducing overtime, getting more precise about scheduling and really trying to transform our labor model to be more efficient but still serve the customer in the same way we always have. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">So we&#146;ll continue to work on that over the course of the year and we&#146;ll continue to look for other efficiencies within our supply chain organization
to take cost out of the business as well, but still deliver the same great service we always have. So that&#146;s what it was in the store business. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>John Baugh </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Douglas before maybe Ryan jumps in, is that
margin that you were able to maintain on that kind of revenue decline. Is that something that we should expect over ensuing quarters and/or year or two? It&#146;s impressive. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Douglas Lindsay </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Yes, some of that&#146;s seasonal, the
deals that we did in the first quarter were on a larger ticket size than what we have actually exceeded our expectations and what we&#146;ve done in the past. We&#146;ve seen a gradual improvement in that margin. A lot of that is us getting our arms
around the discounting and the promotions that are going on in the business. And as you know we&#146;ve been working on that the last nine months and we&#146;re beginning to see the benefits of that. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We&#146;re also churning out of the portfolio, low margin tickets from the previous fourth quarter, a lower margin agreements in the previous fourth quarter
which helps the whole portfolio lift and the overall profitability. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Ryan Woodley </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">And then on the Progressive side of the house, the primary driver of the increase in margin that you saw really was portfolio performance metrics, the bad debt
write-offs which were down significantly year-over-year. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We did as I mentioned, we did see improvement in operating leverage which is just coming from some of those fixed
costs embedded in SG&amp;A in spite of the fact that we continue to invest in people and systems to support growth. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>John Baugh </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Yeah. And on that latter Ryan, I guess there&#146;s always concern when there is rapid growth in the sub-prime and related businesses and the ability to
decision that and collect on that. And I&#146;m just curious what color you could give us around comforting us that you have invested sort of ahead of that growth curve, is that we&#146;re not going to see deterioration in those metrics. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">And you know maybe we will see and this is sort of a sidelight question, maybe we will see EBITDA margin in Progressive come down a little because my
recollection was you weren&#146;t supposed to be this high or you were targeting growth in a flat margin going forward and your margin is certainly 200, 300 basis points I think from where we thought it would be long-term? </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Ryan Woodley </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Yes. Certainly there&#146;s some
seasonality in the Q1 metrics that&#146;s showing through here, tax season has a great impact on those portfolio performance metrics, specifically the ones that drove the margin this quarter, the write offs and the bad debt expense, that&#146;s sort
of consistent dynamic that plays out year-over-year. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">I think the - you know, how we think about the margin profile business remains unchanged. We spend a
lot of time thinking about prudent investments to support not just existing but future growth. We really believe that there is multiple times the opportunity remaining in the market then that&#146;s currently addressed today. And as the market
leader we feel like it&#146;s our opportunity to go and harvest that opportunity in the market and we&#146;re making the investments that would be prudent to go about doing that. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">I think you&#146;ll see that if you took a look across the business from our systems, to our people, we&#146;ve built a robust set of resources that we feel
</P>

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positions us well to serve that redundant. Redundant call centers operations, redundant systems it&#146;s all designed with some available capacity, so that we can handle the growth when it
comes. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>John Baugh </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Thank you for the answers. Good
luck. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Operator </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The next question comes from Kyle
Joseph of Jefferies. Please go ahead. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Kyle Joseph </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Hey. Morning, guys. Thanks for taking my questions. And congrats on a good start to the year. I wanted to talk about gross profit on the leases by segment, on
a consolidated basis you did see that go down a little bit. Is that just a mix shift towards Progressive growth and can you talk about gross profit margins or pricing by segment? </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Steven Michaels </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Yes, Kyle. This is Steve. I mean clearly
the consolidated gross profit is certainly being influenced by the mix shift as you pointed out. I&#146;ll let Douglas addressed the lease margin on the Aaron&#146;s side. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Douglas Lindsay </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Yeah, Kyle. As I mentioned, lease margin
we see an improvement in turning out lower volume agreements and putting in higher value agreements, which has been good for us. I think we also had a mix issue here when we have fewer low margin items or early payout items in the first quarter that
inflates our lease margin a bit. But overall we&#146;re pleased with our projected lease margin going forward in the direction it&#146;s going in. </P>

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<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Got it. That&#146;s helpful. And then next question for Ryan, we talked about the very strong credit performance at Progressive and I know you don&#146;t want
to manage that down to zero, but you know, at what point do you think you&#146;re sort of leaving incremental - at what point is that so low that you&#146;re leaving incremental profit on the table &#150; and then trust me I know at this point
it&#146;s not by any means hindering growth. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">But how do you think about that, that you can manage towards a target loss or is it kind of more on a deals
- deal by deal basis or does it have anything to do with sort of your view on the macro economy at all, just some of your thoughts there would be helpful? </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Ryan Woodley </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Yes. I appreciate it. Fair question. You
know, I think we&#146;ve given sort of rough ranges on where we expect annual averages for write-offs and bad debt to sort of gravitate. And you know I wouldn&#146;t expect to go much lower than where we are today. To your point, you know, if we
feel like we can still achieve our profitability goals, while serving more customers and driving more revenue for our retail partners that&#146;s what we&#146;re going to do. And we are constantly focused on optimizing decisioning to deliver at that
high level performance for our retail partner. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">And so we think about that constantly. We&#146;re continuing to think about that as we move forward to
identify opportunities to do that. Performance obviously in this quarter was driven by the tax season and it&#146;ll change as we move away from the tax season. But I wouldn&#146;t expect to go much lower than where it is today. The write-off
levels, the bad debt levels. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Kyle Joseph </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Appreciate
it. Thanks for answering my questions. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Ryan Woodley </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Thanks, Kyle. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Operator </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The next question comes from Anthony Chukumba of Loop Capital Markets. Please go ahead. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Anthony Chukumba </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Good morning and thanks for taking my
question. So just wanted to quickly circle back I guess on the Conn&#146;s in getting that account. I guess your largest competitors sort of seem to indicate that that they had some issues with the Conn&#146;s loan portfolio. If I remember
correctly, you know, they said Conn&#146;s is making the credit decisions and then it sounds like that sort of contribute to that. So I guess my question is how do you sort of reconcile that and more importantly which decisioning engine are you
going to be using for those Conn&#146;s of customers? Thanks. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>John Robinson </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Thanks for the question. We&#146;re - again we&#146;re thrilled to have the opportunity to partner with the folks at Conn&#146;s and we&#146;re pretty excited
about the opportunity to build a strong book of business together. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Keep in mind the product categories that we&#146;ll be working with the folks at
Conn&#146;s to drive more sales in are product categories that we have years of experience in and I believe strongly that our disciplined approach to underwriting is going to provide a nice reliable source of revenue for Conn&#146;s, and a
profitable driver of lease portfolio growth at Progressive, consistent with kind of how we approach every opportunity. We&#146;re going to be focused on a disciplined approach to decisioning, this is going to drive strong reliable results for
Conn&#146;s as well as Progressive. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Anthony Chukumba </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Okay. And then just want to clarify. So you said you will be using your Progressive decision engine in terms of making approval. Okay. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>John Robinson </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Yes, good clarifying point. So I&#146;ll just add to that. So Progressive in every instance maintains balance sheet risk. We don&#146;t have any relationships
where we&#146;re just the servicer, so as such we maintain control over decisioning. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Anthony Chukumba </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Got it. That&#146;s helpful. Thank you. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Operator </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The next question comes from David Magee of SunTrust. Please go ahead. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>David Magee </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Yes, hi. Good morning and good quarter. I
guess my first question Doug was on the core side, the same store sales number. Anyway we could sort of parse out the impact of the later tax refund and or the impact of transferring business from so what you closed last fall? </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Douglas Lindsay </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Sure. So first of I&#146;ll just to
address the stores we closed. The stores we closed last fall are not in our same store account number. So we exclude both the stores we closed and the stores they merged into. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>David Magee </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Right. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Douglas Lindsay </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">So the number is going to be with that.
So when you look at same store number, I am sorry. </P>

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<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">I&#146;m just curious if you did include those stores and that got the transferred business. You know, obviously that would help the same store sales. Is that
a number that&#146;s worth mentioning at this point? </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Douglas Lindsay </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">You know, we&#146;re not disclosing that number, but I think that we do get a benefit from those merge stores as you pointed out. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>David Magee </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">All right. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Douglas Lindsay </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">So on that same store comp number that
we put out it was impacted by the fact that we had a delayed tax season and there were fewer earlier pay outs which created less revenue from early payouts and that was worth about 2 points to comp in the quarter. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>David Magee </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Okay. So the comp would have been down 7.
</P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Douglas Lindsay </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">It would have been down in the
mid-7s. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>David Magee </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Yes. Okay, that good. And on
the same vein, could you talk a little bit more about the initiatives that you referenced earlier in the core side. And John you mentioned DTC is being very important and I&#146;m just you know - any additional color there as to what you&#146;re
doing would be helpful I think? </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Douglas Lindsay </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Yes. This is Doug. So we&#146;re working on really two things in the business, one is operational excellence, so how do we run the business we have today,
better, tighter, more cost efficiently and optimize our pricing and promotion and product strategy. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">And then the other thing that we&#146;re working on is really how do we transform the business as a big strategic
initiative. And so I see that in a number of different areas. How do we transform our product offerings, how do we broaden our selection to consumers, how do we enhance our servicing from underwriting to how we service the customer over time. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">And that includes our e-com and omni-channel strategy and how we make that more robust. And then how we transform and cost within the business model to be
more efficient and service the customer in a better way over time. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">So those are things we&#146;re working and we have a number of tasks running in market
to inform us of that, and probably most importantly we&#146;re talking to our customer. So we&#146;re out there serving our customer actively right now and trying to figure out what they want, how they&#146;re shopping and purchasing patterns have
changed and how we can adjust the model to better accommodate them and drive more business there. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">And so we&#146;re very bullish about the storefront
model. But it will take time as you know we have a portfolio of leases that we care for. And so as we make these changes they had to turn into the portfolio. And so we&#146;re working on that actively as an organization every day every week. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>John Robinson </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">And David I&#146;ll add. I mean,
that&#146;s exactly right what Douglas said. One thing I&#146;ll add is, we understand the fact that you know bricks and mortar consumer facing businesses are changing, we think there&#146;s absolutely a need for it. We also think there&#146;s a
need for a great website. There&#146;s also a need for a great delivery network in supply chain, and most importantly people to execute that. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">And we feel like we have a unique set of assets to do that and with tweaking and with feedback from customers and
investment in the right areas, we think we can have a really attractive model that is probably a repositioned footprint of stores which we&#146;ve been working on and we&#146;ll continue to work on and is an enhanced customer facing product suite
and offering that we think will be attractive to a lot of customers. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Then as I&#146;ve said earlier, our customer base is approximately 25% to 30% of the
US households out there, so we think it&#146;s a big market opportunity for us and we think over time we have a great potential to grow there. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>David
Magee </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">And to narrow down, one or two of these initiatives that you think might be the most impactful near-term what would they be? </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>John Robinson </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Well, one of the things we&#146;ve already
talked about is rolling out our club program so that&#146;s underway right now. The technology&#146;s been built and we&#146;re rolling it out to all of our stores over the course of this year. And that&#146;s a near term opportunity that works
within the framework of our systems right now. The other opportunities we&#146;re looking at include enhancing our product selection which we think could be meaningful over time. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>David Magee </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Okay. Thank you. And just last question on
Progressive, Ryan, and congrats on a very strong growth you&#146;re seeing there. How would you expect that business to perform sort of later in these other credit cycle? What the sort of puts and takes in that business do you think? </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Ryan Woodley </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Good and fair question. Fortunately the
business has been around through previous credit cycles, so we&#146;ve sort of seen that play out before. You know Kurt and Brent when they founded this business back in &#145;99 essentially created a virtual rent to own market and sort of lived
through some cycles between &#145;99 and today and we found that the portfolio performs well. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">So we see lift on the front end because folks up top in a credit spectrum pullback, which opens up more apps to
float down to Progressive. And then you have a swap in, swap out dynamic where folks who previously had access to credit different credit offerings no longer do and water fall down to lease-to-own and you know it tends to bode well for the business.
</P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>John Robinson </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">And David, I&#146;ll add to that.
This is John, is typically where companies towards the back end of a credit cycle get in trouble as they drive growth by being more aggressive in their decisioning. And we&#146;ve been very &#150; as Ryan has said, disciplined about our decisioning.
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We are analytical about it. We are incremental in terms of the changes we make. We also have the benefit of a largely just about 9% of our portfolio is
12 month lease term and so we can get feedback on that portfolio very quickly. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">So in the first 90 days of that portfolio any vintage we can very
accurately tell how it&#146;s going to play out over the 12 months and that&#146;s unique to our business relative to other businesses that may have issues towards the back end of the credit cycle, and I think help protect us and I think we&#146;re
getting better and there we&#146;re getting better from a science perspective in terms of making good decisions. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">So that - the decisioning is really
important and we understand that and we take it really seriously and are really disciplined about how we change it. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>David Magee </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Great. Thanks, John. And good luck, guys. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>John Robinson </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Thank you. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Ryan Woodley </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Thank you. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Operator </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">This concludes our question-and-answer session. I would now like to turn the conference back over to John Robinson for any closing remarks. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>John Robinson </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Thank you all very much for participating
in the call. We look forward to updating you on Q2 on our next call. Thank you. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Operator </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The conference is now concluded. Thank you for attending today&#146;s presentation. You may now disconnect your lines. Have a great day. </P>
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