ATLANTA, Dec. 18 /PRNewswire/ -- Aaron Rents, Inc. (NYSE: RNT), the
nation's leader in the rental, rental purchase and specialty retailing of
residential and office furniture, consumer electronics and home appliances,
today announced that it has acquired 27 real estate leases auctioned off
through bankruptcy court proceedings by the Heilig-Meyers Company. In
addition to these leased facilities, the Company also acquired one store in
which the real estate was owned by Heilig-Meyers. Aaron Rents plans to reopen
these stores over the next two quarters in its rental purchase division as
Aaron's Sales and Leasing stores.
The acquisition of these stores will enable the Company to accelerate its
2001 store expansion plans and will result in locations with favorable lease
terms and a customer base that is familiar with being served at these
locations.
"We are very pleased to have been able to obtain these real estate
locations," said R. Charles Loudermilk, Sr., Chairman and Chief Executive
Officer of Aaron Rents. "We had planned to open an additional
30 Company-operated rental purchase stores throughout 2001, and this
opportunity will allow us to complete this new store opening plan earlier in
the year," Mr. Loudermilk added.
Aaron Rents has expanded in 2000 at its fastest growth rate ever, and will
open during the year 2000 approximately 30 Company-operated and 50 franchised
stores, in addition to acquiring 10 stores in Puerto Rico, for a total of
90 stores; an increase in rental purchase store count of over 20% for the
year.
"We expect to have another record fourth quarter and fiscal year," noted
Mr. Loudermilk, "However, our rapid expansion of new store openings during
this year along with the costs we will incur this quarter relating to the
acquisition of the Heilig-Meyers locations are expected to result in fourth
quarter earnings being somewhat less than estimated earnings, although above
earnings for the same period last year," Mr. Loudermilk said. "In addition,
since our goal is to get these former Heilig-Meyers stores open as soon as
possible, the initial normal start-up losses associated with opening new
stores will be accelerated during the first two quarters of 2001. Therefore,
it is possible that the earnings effect of these openings and the carry-over
of start-up losses of stores opened later in 2000 will result in earnings per
share for the first two quarters of 2001 that will be at or near earnings per
share for the comparable periods in 2000. These store openings are expected to
result in an increasing rate of revenue growth with a short-term slowdown in
earnings growth, and the long-term potential benefits should be substantial."
"It is anticipated that Aaron's Rental Purchase revenues for the fourth
quarter will be more than 20% higher compared to the same quarter a year ago,
and that same store revenues for the rental purchase stores will increase over
8% during the current quarter. We continue to rapidly gain contracts in our
rental purchase stores, and continue to see tremendous customer acceptance of
our concept." Mr. Loudermilk noted. "We are accelerating our growth plans due
to the unique opportunity we see at this time to grow the Company."
In addition, Mr. Loudermilk stated that he planned to sell for personal
tax and estate purposes approximately 150,000 shares of Aaron Rents stock over
the next 90 days, or approximately 3% of all the common shares he owns.
Aaron Rents, Inc., based in Atlanta, currently has over
545 Company-operated and franchised stores in 42 states for the rental and
sale of residential and office furniture, accessories, consumer electronics
and household appliances. The Company also manufactures furniture, bedding
and accessories at ten facilities in four states.
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Forward-looking statements in this news release are based on |
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current expectations and are subject to risks and uncertainties, and actual |
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results may vary materially from the expectations due to such factors as |
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changes in general economic conditions, competition, pricing, customer demand |
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and other issues. |
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"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1993: 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 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 1999, which discussion is incorporated herein
by this reference.
SOURCE Aaron Rents, Inc.
CONTACT: Gilbert L. Danielson, Executive Vice President and Chief
Financial Officer of Aaron Rents, Inc., 404-231-0011/