For the three months ended September 30, Aaron Rents reported that
revenues increased to $95.9 million compared to $76.2 million for the same
quarter a year ago. Net earnings were $4.9 million compared to $4.8 million,
and both earnings per share and earnings per share assuming dilution were $.23
compared to $.25 for the third quarter of 1997.
For the first nine months, revenues rose to $282.5 million compared to
$230.2 million for the corresponding period of 1997. Net earnings increased
to $15.7 million, compared to $13.8 million, and earnings per share were $.78
versus $.71 per share ($.76 versus $.70 assuming dilution) for the first nine
months of 1997.
Revenues of the Aaron's Rental Purchase division increased 43% for the
quarter to $50.5 million compared to $35.2 million last year, and increased
41% for the nine months to $146.6 million versus $104.2 million for the 1997
period. Systemwide revenues for the Company, which include revenues of
franchised rental purchase stores, were up 30% for the quarter to
$117.3 million and up 28% for the nine months to $343.3 million.
``The revenue growth from all aspects of our business is strong,'' said R.
Charles Loudermilk, Sr., Chairman and Chief Executive Officer. ``As we
previously indicated, we were somewhat disappointed in our earnings growth for
the quarter. The biggest disappointment was the lack of profitability from
our convention furnishings division which we are selling to Cort Business
Services Corporation. We expect to recognize a small loss on this sale.
``Combining the Aaron Rents and Cort trade show operations should result in
an excellent business for Cort. The divestiture of the convention business
will enable us to better focus our management efforts on our core rent-to-rent
and rental purchase divisions. We continue to be very optimistic about the
long-term outlook for Aaron Rents.''
Aaron Rents, Inc., based in Atlanta, has a total of 421 stores in 32
states for the rental and sale of residential and office furniture and
accessories, consumer electronics, and household appliances. The Company
manufactures furniture at five plants in Georgia and Florida.
Aaron Rents, Inc.
Period Ended September 30, 1998
(In thousands, except per share amounts)
Three Months Nine Months
1998 1997 1998 1997
Revenues $95,882 $76,238 $282,523 $230,183
Net Earnings 4,906 4,805 15,746 13,750
Earnings Per Share .23 .25 .78 .71
Earnings Per Share
Assuming Dilution $.23 $.25 $.76 $.70
Weighted Average
Shares Outstanding 21,091 18,963 20,159 19,238
Weighted Average Shares
Outstanding Assuming
Dilution 21,508 19,548 20,619 19,659
Note: Forward-looking statements in this news release are based on current
expectations, which are subject to risks and uncertainties, and actual results
may vary materially from these expectations due to such factors as changes in
general economic conditions, competition and pricing, customer demand and
other issues.