The Company also plans to continue to acquire franchised stores or sell
Company-operated stores to franchisees as opportunities present
themselves.
The Company expects to increase store count, a combination of Company-
operated and franchised stores, between 10% and 13% on average over the next
several years. The net store growth in 2008 is expected to be somewhat less
than 10%, as the Company plans to consolidate or sell some stores during the
year that do not meet revenue or profit criteria.
Aaron Rents will hold a conference call to discuss its quarterly financial
results on Wednesday, February 20, 2008, at 10:30 am Eastern Time. The public
is invited to listen to the conference call via webcast accessible through the
Company's website, http://www.aaronrents.com, in the "Investor Relations"
section. The webcast will be archived for playback at that same site.
Aaron Rents, Inc., based in Atlanta, currently has over 1,565 Company-
operated and franchised stores in 48 states and Canada 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 12 facilities in five states.
"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
materially from those contained in the forward-looking statements. These
risks and uncertainties include factors such as changes in general economic
conditions, competition, pricing, customer demand and other issues, and the
risks and uncertainties discussed under "Risk Factors" in the Company's Annual
Report on Form 10-K for the fiscal year ended December 31, 2006. Statements
in this release that are "forward-looking" include without limitation Aaron
Rents' projected revenues, earnings, and store openings for future periods.
Aaron Rents, Inc. and Subsidiaries
Consolidated Statements of Earnings
(In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
2007 2006 2007 2006
(Unaudited) (Unaudited)
Revenues:
Rentals and Fees $284,984 $249,102 $1,126,812 $992,791
Retail Sales 13,570 12,887 54,518 62,319
Non-Retail Sales 76,537 64,676 261,584 224,489
Franchise Royalties
and Fees 10,406 8,856 38,803 33,626
Other 3,114 4,348 13,194 13,367
Total 388,611 339,869 1,494,911 1,326,592
Costs and Expenses:
Retail Cost of Sales 8,919 8,436 36,099 41,262
Non-Retail Cost of Sales 70,400 58,909 239,755 207,217
Operating Expenses 179,893 149,190 674,412 579,565
Depreciation of Rental
Merchandise 101,908 90,701 407,321 364,109
Interest 2,514 1,869 8,479 9,729
Total 363,634 309,105 1,366,066 1,201,882
Earnings Before Taxes 24,977 30,764 128,845 124,710
Income Taxes 9,485 11,723 48,570 46,075
Net Earnings $15,492 $19,041 $80,275 $78,635
Earnings Per Share $.29 $.35 $1.48 $1.50
Earnings Per Share
Assuming Dilution $.28 $.35 $1.46 $1.47
Weighted Average
Shares Outstanding 54,084 54,062 54,163 52,545
Weighted Average
Shares Outstanding
Assuming Dilution 54,791 54,866 55,082 53,377
Selected Balance Sheet Data
(In Thousands)
December 31, December 31,
2007 2006
(Unaudited)
Cash $5,249 $8,807
Accounts Receivable 52,025 43,495
Rental Merchandise, Net 623,452 612,149
Property, Plant and Equipment, Net 247,038 170,294
Other Assets, Net 185,412 144,861
Total Assets 1,113,176 979,606
Bank Debt 82,884 15,612
Senior Notes 80,000 90,000
Total Liabilities 439,796 372,591
Shareholders' Equity $673,380 $607,015
SOURCE Aaron Rents, Inc.
http://www.aaronrents.com