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Aaron Rents, Inc. Reports Record First Quarter Results


For the three months ended March 31, revenues increased to $104.3 million compared to $92.8 million for the same quarter a year ago. Excluding the revenues from the Company's convention furnishings division, which was sold in 1998, first quarter revenues were up 14%. Net earnings were $6.7 million, compared to $5.3 million, and earnings per share were $.33 versus $.28 ($.33 versus $.27 assuming dilution) for the first quarter of 1999 compared to 1998.

Revenues of the Aaron's Rental Purchase division increased 26% for the quarter to $59.5 million compared to $47.4 million last year. Systemwide rental purchase revenues, which include revenues of franchised stores, increased to $85.1 million versus $66.3 million, a 28% increase.

``We are quite pleased with the first quarter results, especially the performance of our rental purchase division,'' said R. Charles Loudermilk, Sr., Chairman and Chief Executive Officer. ``We remain very optimistic about the future outlook for the Company.''

Based in Atlanta, Aaron Rents, Inc. currently has a total of 442 Company-operated and franchised profit centers in 36 states for the rental and sale of residential and office furniture and accessories, consumer electronics and household appliances. The Company manufactures furniture, bedding and accessories at eleven facilities in four states.

                              Aaron Rents, Inc.
                         Three Months Ended March 31
                   (In thousands, except per share amounts)

                                                  1999           1998
    Revenues                                   $104,303        $92,809

    Net Earnings                                  6,679          5,286

    Earnings Per Share                              .33            .28

    Earnings Per Share Assuming Dilution       $    .33        $   .27

    Weighted Average Shares Outstanding          20,215         18,965

    Weighted Average Shares Outstanding
      Assuming Dilution                          20,444         19,468

Note: Forward-looking statements in this news release are based on current expectations and are subject to risks and uncertainties, and actual results may vary materially from the expectations due to such factors as changes in general economic conditions, competition, pricing, customer demand and other issues.

``Safe Harbor'' Statement under the Private Securities Litigation Reform Act of 1995: Statements in this news release regarding Aaron Rents, Inc.'s business which are not historical facts are forward-looking statements that involve risks and uncertainties and which could cause actual results to differ from those contained in the forward-looking statements. For a discussion of such risks and uncertainties, see ``Risk Factors'' in the Company's Annual Report on Form 10-K for fiscal 1998, which discussion is incorporated herein by this reference.

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