ATLANTA, April 12 /PRNewswire/ -- The Board of Directors of Aaron Rents,
Inc. (NYSE: RNT RNT.A), today announced it has authorized an amendment to the
Company's Articles of Incorporation that will permit voluntary conversion of
Class A Common Stock on a share-for-share basis into shares of Common Stock.
The proposed amendment is subject to approval by shareholders at their annual
meeting May 2 in Atlanta.
"The purpose of this conversion amendment is to improve the liquidity of
our common stock," said R. Charles Loudermilk, Sr., Chairman of the Board and
Chief Executive Officer of the Company. "Our directors believe this step
should enhance the trading activity in the Company's shares to the benefit of
our shareholders."
The Company in 1992 recapitalized its original class of common stock into
non-voting Common Stock (RNT) and voting Class A Common Stock (RNT.A).
"Over the years the Class A Common Stock has traded at both a
disproportionate premium and discount to the Common Stock, which primarily
results from its low liquidity," Mr. Loudermilk said. "Our directors
anticipate that the conversion right should increase the liquidity of all the
shares of Aaron Rents stock without adversely affecting either class."
Currently there are approximately 3,829,506 shares of Class A Common Stock
and 16,041,541 shares of Common Stock outstanding.
If shareholders approve the amendment, holders of Class A Common Stock
will have the option to convert, from time to time, any or all of their shares
into an equal number of shares of Common Stock.
Aaron Rents, Inc. is the nation's leader in the combined businesses of
rental, rental purchase and the specialty retailing of residential and office
furniture, consumer electronics and home appliances with over 490 Company-
operated and franchised stores nationwide. The Company manufactures
furniture, bedding and accessories at 11 plants in four states.
The Company recently announced record revenues and earnings for the fourth
quarter and the year 1999, the eighth consecutive year of record revenues and
earnings. Revenues for the year increased 15% to $437.4 million, and net
earnings were a record $25.6 million versus $21.5 million the previous year.
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 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 1O-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/