ATLANTA, July 26 /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 revenues and earnings for the second quarter and
first half of 2001.
"These results reflect the strong growth of our sales and lease ownership
division and are in line with the revised expectations that we announced on
July 5, reflecting the costs associated with our accelerated schedule of
opening new stores and the effects of the slowdown in our rent-to-rent
business," said R. Charles Loudermilk, Sr., Chairman and Chief Executive
Officer of Aaron Rents, Inc.
For the three months ended June 30, revenues increased 9% to a record
$132.8 million compared to $121.9 million for the second quarter of 2000. Net
earnings for the second quarter this year were $5.0 million versus
$6.9 million. Diluted earnings per share for the quarter were $.25 compared
to $.35 per share for the second quarter last year.
For the first six months of this year, revenues advanced 11% to a record
$274.2 million compared to $247.3 million for the first half of 2000. Net
earnings for the six months were $12.3 million versus $14.2 million for the
corresponding period last year. Diluted earnings per share for the first half
of this year were $.61 compared to $.71 per share for the period last year.
The Aaron's Sales and Lease Ownership division increased its second
quarter revenues 21% to $93.7 million versus $77.5 million for the second
quarter last year. Systemwide revenues for this division, including
franchised stores, rose 22% to $139.4 million versus $114.4 million compared
to the second quarter a year ago. First half sales and lease ownership
revenues increased 22% to $191.5 million compared to $156.8 million last year,
and systemwide revenues advanced 24% to $285.3 million compared to
$230.1 million for the first half last year.
Revenues from Company-operated sales and leasing stores open in comparable
quarters increased 10.6% during the second quarter compared to the same period
a year ago. Revenues from the Company's rent-to-rent stores open in
comparable quarters were down 9.3% compared to the previous year.
In its accelerated schedule of new store openings, the Company's sales and
lease ownership division opened 26 new stores in the second quarter, 16
Company-operated and 10 franchise stores, and added one store through
acquisition.
"We are planning to open another 60 Company-operated stores and over
15 franchised stores during the second half of this year," Mr. Loudermilk
said. "These new stores will result in the adding of over 120 sales and lease
ownership stores during the 2001 year."
While the smaller rent-to-rent division felt the effects of the soft
economy during the second quarter, the Company's acquisition of 52 additional
Heilig-Meyers real estate locations in early July, for a total of 82 former
Heilig-Meyers locations acquired since their Chapter 11 filing, has opened the
way for even faster growth in the sales and lease ownership division. The
Company expects that its 2001 revenues will exceed $565 million and that
systemwide revenues will rise above $750 million for the year.
Aaron Rents, Inc. based in Atlanta, currently has more than 590 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.
| 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 and 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) (Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
Revenues:
Rentals and Fees $100,537 $89,257 $202,605 $176,771
Retail Sales 14,754 14,530 32,030 31,835
Non-Retail Sales 13,494 14,392 31,440 31,222
Other 3,978 3,731 8,105 7,454
Total 132,763 121,910 274,180 247,282
Costs and Expenses:
Retail Cost of Sales 10,985 10,191 23,207 22,424
Non-Retail Cost of Sales 12,773 13,412 29,502 28,905
Operating Expenses 65,718 55,594 132,272 112,009
Depreciation of Rental
Merchandise 33,585 30,219 66,067 58,482
Interest 1,704 1,317 3,332 2,544
Total 124,765 110,733 254,380 224,364
Earnings Before Taxes 7,998 11,177 19,800 22,918
Income Taxes 3,031 4,248 7,504 8,711
Net Earnings $4,967 $6,929 $12,296 $14,207
Earnings Per Share $.25 $.35 $.62 $.72
Earnings Per Share
Assuming Dilution $.25 $.35 $.61 $.71
Weighted Average
Shares Outstanding 19,911 19,790 19,891 19,845
Weighted Average
Shares Outstanding
Assuming Dilution 20,141 19,905 20,110 19,998
SOURCE Aaron Rents, Inc.
CONTACT: Gilbert L. Danielson, Executive Vice President, Chief Financial
Officer of Aaron Rents, Inc., +1-404-231-0011/