For the three months ended December 31, 1998, revenues advanced 21% to a
record $97.1 million compared to $80.6 million for the corresponding 1997
period. Net earnings gained 24% to $5.7 million versus $4.6 million.
Earnings per share rose to $.28 ($.27 assuming dilution) compared to
$.25 ($.24 assuming dilution) for the fourth quarter of 1997.
Revenues for the year ended December 31, 1998, increased 22% to
$379.7 million compared to $310.8 million for 1997. Earnings rose 17% to a
record $21.5 million versus $18.4 million. Earnings per share reached
$1.06 ($1.04 assuming dilution) compared to $.96 ($.94 assuming dilution) for
1997.
Aaron's Rental Purchase division's revenues increased 33% to $53.3 million
for the fourth quarter of 1998 versus $40.2 million for the 1997 quarter. For
the year Aaron's Rental Purchase revenues rose 38% to $200.0 million compared
to $144.4 million for 1997. Systemwide revenues for the Company, including
revenues of rental purchase franchised stores, were up 26% to $120.9 million
for the quarter and up 27% to $464.2 million for the year compared to 1997.
``These record results reflect the strong performance of all our operating
divisions,'' said R. Charles Loudermilk, Sr., Chairman and Chief Executive
Officer of Aaron Rents. ``Our rent-to-rent division continues to grow with
109 stores open at year end, while the Aaron's Rental Purchase division
expanded to 318 stores including 136 franchised stores at the end of the year.
We anticipate continuing strong growth as the result of our strategic plan to
grow on all fronts -- rent-to-rent, rental purchase, and rental purchase
franchising.''
Aaron Rents, Inc., based in Atlanta, currently has a total of 438 owned
and franchised stores in 36 states for the rental and sales of residential and
office furniture and accessories, consumer electronics and household
appliances. The Company manufactures furniture, bedding, and accessories at
11 facilities in four states.
Aaron Rents, Inc.
Year Ended December 31, 1998
(In thousands, except per share amounts)
Three Months Year
1998 1997 1998 1997
Revenues $97,136 $80,568 $379,659 $310,751
Net Earnings 5,738 4,646 21,484 18,396
Earnings Per Share .28 .25 1.06 .96
Earnings Per Share
Assuming Dilution $ .27 $ .24 $ 1.04 $ .94
Weighted Average Shares
Outstanding 20,764 18,948 20,312 19,165
Weighted Average Shares
Outstanding Assuming
Dilution 21,050 19,602 20,732 19,662
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 1997, which discussion is incorporated herein
by this reference.