ATLANTA, April 25 /PRNewswire/ -- Aaron Rents, Inc. (NYSE: RNT), the
nation's leader in the rental, sales and lease ownership, and specialty
retailing of residential and office furniture, consumer electronics and home
appliances, today announced record revenues and earnings for the first quarter
of 2001.
For the three months ended March 31, 2001, revenues advanced 13% to a
record $141.4 million compared to $125.4 million for the first quarter of
2000. Net earnings for the first quarter increased to $7.3 million and
$.37 per share on a diluted basis compared to $.36 per share for the same
period last year.
Systemwide revenues for the Company, which includes revenues of franchised
stores, advanced 17% to $189.4 million for the quarter versus $161.7 million a
year ago.
The Company's Aaron's Sales and Lease Ownership division continued its
strong expansion, increasing its revenues 23% to a record $97.8 million for
the first quarter compared to $79.4 million for the same period in 2000.
Systemwide revenues for the division were $145.8 million, an increase of 26%
over last year's quarter. Revenues from Company-operated sales and lease
ownership stores open in comparable quarters increased 12.6% during the first
quarter compared to the same period a year ago. The division opened 12 new
stores in the first quarter, seven Company-operated and five franchised
stores, and added eight stores through acquisition, bringing the total of
sales and lease ownership stores open at the end of March to 476.
Revenues from the Company's rent-to-rent stores open in comparable
quarters were down 0.5% during the quarter compared to the same period a year
ago.
"We are pleased with the strong revenue growth of our Aaron's Sales and
Lease Ownership stores and the progress of our previously announced
accelerated store opening plan," said R. Charles Loudermilk, Sr., Chairman and
Chief Executive Officer. "During the quarter we opened four of the former
Heilig-Meyers locations acquired last December, and early results of the ramp-
up of these stores is encouraging. We plan to open 20 more of the former
Heilig-Meyers locations in the second quarter. As expected, the up-front
costs associated with opening these new stores along with the carry-over of
start-up losses of stores open within the past year affected our earnings
growth this quarter. We anticipate, however, substantial earnings improvement
in the latter part of 2001 as a result of these new store openings."
Aaron Rents, Inc., based in Atlanta, currently has more than 575 Company-
operated and franchised stores in 42 states and Puerto Rico 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 11 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 2000, which discussion is incorporated herein
by this reference.
Aaron Rents, Inc. and Subsidiaries
Consolidated Statements of Earnings
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
March 31,
2001 2000
Revenues:
Rentals and Fees $102,068 $87,514
Retail Sales 17,276 17,305
Non-Retail Sales 17,946 16,830
Other 4,127 3,723
Total 141,417 125,372
Costs and Expenses:
Retail Cost of Sales 12,222 12,233
Non-Retail Cost of Sales 16,729 15,493
Operating Expenses 66,554 56,415
Depreciation of Rental Merchandise 32,482 28,263
Interest 1,628 1,227
Total 129,615 113,631
Earnings Before Taxes 11,802 11,741
Income Taxes 4,473 4,463
Net Earnings $7,329 $7,278
Earnings Per Share $.37 $.37
Earnings Per Share Assuming Dilution $.37 $.36
Weighted Average Shares Outstanding 19,870 19,900
Weighted Average Shares Outstanding
Assuming Dilution 20,074 20,091
SOURCE Aaron Rents, Inc.
CONTACT: Gilbert L. Danielson, Executive Vice President and Chief
Financial Officer of Aaron Rents, Inc., 404-231-0011/