ATLANTA, Oct. 25 /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 record revenues and earnings for the third quarter and the
first nine months of its fiscal year. The third quarter was the 35th
consecutive quarter of record revenues and earnings for the Company.
For the three months ended September 30, revenues increased to
$124.9 million compared to $109.4 million for the third quarter of 1999, up
14%. Net earnings for the third quarter this year advanced to $6.7 million
versus $6.1 million for the third quarter last year. Earnings per share for
the third quarter of 2000 rose to $.34 compared to $.30 for the third quarter
of 1999, an increase of 13%.
For the nine months, revenues advanced 16% to $372.1 million compared to
$321.0 million for the corresponding period last year. Net earnings this year
advanced to $20.9 million compared to $19.4 million with earnings per share
increasing to $1.05 compared to $.96 per share ($1.05 versus $.94 per share
assuming dilution) for the first nine months of 1999, a 12% increase in
diluted earnings per share.
Aaron's Rental Purchase division increased its revenues 22% to a record
$79.8 million for the third quarter this year compared to $65.4 million last
year. Systemwide revenues, which includes revenues of franchised stores,
gained 19% to $163.7 million for the quarter compared to $137.0 million last
year. For the first nine months, rental purchase revenues grew 25% to
$236.7 million compared to $188.8 million for the period last year, while
systemwide revenues increased 21% to $484.3 million versus $400.4 million last
year.
Revenues from Company-operated rental purchase stores open in comparable
quarters grew 10.3% during the third quarter compared to the same period a
year ago. In addition, revenues from the Company's rent-to-rent stores open
in comparable quarters grew 9.1% during the quarter compared to the same
quarter last year.
During the first nine months of this year, the Company has added
66 rental purchase stores, including 10 stores acquired in Puerto Rico in
September, and plans to have an over 20% increase in rental purchase stores
open by the end of 2000 compared to the previous year. At September 30 the
Company had 99 rent-to-rent stores, 248 Company-operated rental purchase
stores, and 186 franchised stores open, for a total of 533 stores in 39 states
and Puerto Rico.
"This strong performance reflects the continuing success of the Aaron's
concept throughout America and the outstanding service provided by our
people," said R. Charles Loudermilk, Sr., Chairman and Chief Executive Officer
of Aaron Rents. "We look forward to another record year."
Aaron Rents, Inc., based in Atlanta, currently has more than 535 Company-
operated and franchised stores in 39 states and Puerto Rico for the rental and
sale of residential and office furniture, accessories, consumer electronics
and household appliances. The Company manufactures furniture, bedding and
accessories at 10 facilities in four states.
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Forward-looking statements in this news release are based on current |
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expectations and are subject to risks and uncertainties, and actual results |
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may vary materially from the expectations due to such factors as changes in |
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general economic conditions, competition, pricing, customer demand and other |
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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.
Aaron Rents, Inc. and Subsidiaries
Consolidated Statements of Earnings
(In thousands except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
(unaudited) (unaudited)
Revenues:
Rentals and Fees $89,460 $79,963 $266,231 $237,204
Retail Sales 16,466 16,160 48,301 47,240
Non-Retail Sales 15,237 10,334 46,459 28,639
Other 3,687 2,922 11,141 7,963
Total 124,850 109,379 372,132 321,046
Costs and Expenses:
Retail Cost of Sales 11,516 11,675 33,940 33,893
Non-Retail Cost of
Sales 14,219 9,886 43,124 26,865
Operating Expenses 56,293 51,349 168,302 150,272
Depreciation of Rental
Merchandise 30,610 25,556 89,092 76,033
Interest 1,413 1,053 3,957 2,729
Total 114,051 99,519 338,415 289,792
Earnings Before Taxes 10,799 9,860 33,717 31,254
Income Taxes 4,093 3,752 12,804 11,892
Net Earnings $6,706 $6,108 $20,913 $19,362
Earnings Per Share $.34 $.30 $1.05 $.96
Earnings Per Share
Assuming Dilution $.34 $.30 $1.05 $.94
Weighted Average
Shares Outstanding 19,834 20,078 19,841 20,111
Weighted Average
Shares Outstanding
Assuming Dilution 19,938 20,393 19,980 20,495
SOURCE Aaron Rents, Inc.
CONTACT: Gilbert L. Danielson, Executive Vice President and Chief
Financial Officer of Aaron Rents, Inc., 404-231-001/