``We anticipate revenues for the current quarter will be up over 20% from
the third quarter last year,'' said R. Charles Loudermilk, Sr., Chairman and
Chief Executive Officer. ``Our rental purchase division continues to grow and
perform well, however, earnings from our convention furnishings and
rent-to-rent divisions will be below plan,'' Mr. Loudermilk said.
``We had anticipated that the acquisition of the Blackhawk Convention
Services business in December of 1997 would create synergies with our existing
convention services division and would add to the profitability of the Company
beginning with the current quarter, but this has not developed. In addition,
our rent-to-rent division, historically a slow-growth and mature business, has
achieved better than expected increases in revenues in recent quarters. These
incremental revenues during the third quarter are being realized through
extensive advertising, promotion, and customer service costs, which will
result in profits for the division being down for the quarter compared to the
quarter a year ago,'' Mr. Loudermilk explained.
``The challenges in these two divisions are currently being addressed and
we expect to improve the earnings comparisons in subsequent quarters. We are
very optimistic about the long-term outlook for Aaron Rents,'' Mr. Loudermilk
added.
Mr. Loudermilk also stated that the Company would continue with its
existing share repurchase program and would seek authorization from the Board
of Directors to acquire an additional 1,000,000 common shares in the
marketplace.
Aaron Rents, Inc., based in Atlanta, currently has a total of 426 stores
in 32 states for the rental and sale of residential and office furniture and
accessories, consumer electronics, household appliances and convention
furnishings. The Company manufactures furniture at five plants in Georgia and
Florida.
Except for historical information contained herein, the matters set forth
in this news release are forward-looking statements. The Company notes that
the forward-looking statements set forth above involve a number of risks and
uncertainties that could cause actual results to differ materially from any
such statement, including the risks and uncertainties discussed in the
Company's Prospectus dated April 28, 1998, filed with the Securities and
Exchange Commission, under the caption ``Risk Factors,'' which discussion is
incorporated herein by this reference.