ATLANTA, April 24 /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 first quarter. This
quarter was the Company's 33rd consecutive quarter of record revenues and
record earnings.
For the three months ended March 31, 2000, revenues reached a record
$125.4 million compared to $104.3 million for the first quarter last year, a
20% increase. Net earnings were up 9% to a record $7.3 million versus
$6.7 million for first quarter 1999. Earnings per share on a diluted basis
increased to $.36 per share compared to $.33 per share last year.
Aaron's Rental Purchase division continued its strong growth, increasing
revenues by 33% to $79.4 million for the first quarter this year versus
$59.5 million for the first quarter of 1999. The division opened 25 new
stores in the first quarter, 11 franchised and 13 Company-operated stores,
bringing the total of rental purchase stores open at the end of the quarter to
392.
Systemwide rental purchase revenues, including revenues of franchised
stores, increased to $115.7 million versus $85.1 million a year ago, a
36% increase.
"We are very pleased with the continuing record growth of our Company,"
said R. Charles Loudermilk, Sr., Chairman and Chief Executive Officer.
"Customer acceptance and demand for our rental purchase concept continues to
increase, and we are currently opening new stores about one every three or
four days. In addition, although the profitability of our rent-to-rent
business is off from a year ago, we do see positive trends and are optimistic
that this division will show substantial improvement the remainder of the
year. We expect another record year for Aaron Rents in 2000."
Aaron Rents, Inc. based in Atlanta, currently has over 495 Company-
operated and franchised stores nationwide. The Company manufactures
furniture, bedding and accessories at 10 plants in four states.
Aaron Rents, Inc.
Three Months Ended March 31
(in thousands except per share amounts)
2000 1999
Revenues $125,372 $104,303
Net Earnings 7,278 6,679
Earnings Per Share .37 .33
Earnings Per Share
Assuming Dilution $.36 $.33
Weighted Average
Shares Outstanding 19,900 20,215
Weighted Average
Shares Outstanding
Assuming Dilution 20,091 20,444
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
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
10-K for fiscal 1999, which discussion is incorporated herein by this
reference.
SOURCE Aaron Rents, Inc.
CONTACT: Gilbert L. Danielson, Executive Vice President Chief Financial
Officer of Aaron Rents, Inc., 404-231-0011/