ATLANTA, July 27 /PRNewswire/ -- Aaron Rents, Inc. (NYSE:RNT), one of the
nation's leading furniture rental and sales companies, today reported record
revenues and earnings for both the second quarter and first six months of
1998. Revenues increased 21% for both the quarter and the first six months,
and net earnings were up 20% for the quarter and 21% for the six months. It
was the Company's 26th consecutive quarter of record revenues and 27th
consecutive quarter of record earnings.
For the three mouths ended June 30, revenues advanced to $93.8 million
compared to $77.5 million for the same quarter last year. Net earnings were
$5.6 million, compared to $4.6 million, and both earnings per share and
earnings per share assuming dilution were $.27 versus $.24 for the second
quarter of 1998 compared to the same quarter in 1997.
For the first six months, revenues rose to $186.6 million compared to
$153.9 million for the corresponding period of 1997. Net earnings increased to
$10.8 million, compared to $8.9 million, and earnings per share were
$.55 versus $.46 per share ($.54 versus $.45 assuming dilution) for the first
six months of 1998 compared to the same period last year.
Revenues of the Aaron's Rental Purchase division increased 38% for the
quarter to $48.8 million compared to $35.5 million last year. Systemwide
rental purchase revenues, which include revenues of franchised stores,
increased to $69.2 million versus $48.9 million, a 42% increase.
The first half revenues of the Aaron's Rental Purchase division were up
39% to $96.2 million versus $69.1 million for the 1997 period.
Systemwide revenues grew 44% to $135.5 million versus $94.2 million.
``We are pleased with the results for the quarter and are on track for
another record year,'' said R. Charles Loudermilk, Sr., Chairman and Chief
Executive Officer. ``We anticipate continuing growth in both our rent-to-rent
and rental purchase businesses.''
Aaron Rents, Inc., based in Atlanta, currently has a total of 421 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.
Aaron Rents, Inc.
Period Ended June 30
(In Thousands, except per share amounts)
Three Months Six Months
1998 1997 1998 1997
Revenues $93,832 $77,465 $186,641 $153,945
Net Earnings 5,554 4,633 10,840 8,945
Earnings per share .27 .24 .55 .46
Earnings per share
assuming dilution $.27 $.24 $.54 $.45
Weighted average shares
outstanding 20,399 19,102 19,686 19,377
Weighted average shares
outstanding assuming
dilution 20,873 19,443 20,167 19,715
SOURCE:
Aaron Rents, Inc.