ATLANTA, Sept. 15 /PRNewswire-FirstCall/ -- Aaron Rents, Inc. (NYSE: RNT),
the nation's leader in the sales and lease ownership, specialty retailing and
rental of residential and office furniture, consumer electronics and home
appliances and accessories, today announced that it has entered into an
agreement to sell the assets of its Aaron's Corporate Furnishings division to
CORT Business Services Corporation.
Aaron's Corporate Furnishings, the Company's residential rent-to-rent
business, recorded revenues of $99 million for the fiscal year ended December
31, 2007 and currently operates 47 stores. Aaron Rents, Inc. will receive
cash of approximately $72 million from the sale, subject to adjustments, in
addition to payment for certain accounts receivable. The Company is retaining
certain liabilities of the business, including its accounts payable and
accrued expenses.
"The residential rent-to-rent business currently represents approximately
6% of our consolidated revenues, and for many years has not had the same
growth rate or prospects of our fast growing and highly successful Aaron's
Sales & Lease Ownership division," stated Robert C. Loudermilk, Jr., President
and Chief Executive Officer of Aaron Rents.
"This sale will enable us to focus our resources and energy on growing the
Aaron's Sales & Lease Ownership division. With this divesture, we anticipate
the Company will record increased revenue and earnings growth rates in future
periods."
Aaron Rents will treat the sale for accounting purposes as a discontinued
operation beginning with its third quarter results. The Company does not
expect to record any significant gain or loss on the sale and its earnings
guidance for the third quarter and fiscal year 2008 is unchanged. The sale,
which is subject to customary closing conditions, including antitrust
clearance, is expected to close by the end of 2008.
Aaron Rents, Inc., based in Atlanta, currently has a total of more than
1,575 Company-operated and franchised stores in 48 states and Canada.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: Statements in this news release regarding Aaron Rents, Inc.'s
business and the pending divestiture discussed herein 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, 2007. Statements in this release that are "forward-looking"
include without limitation the effect of the divestiture on the Company's
future revenue and earnings growth rates.
SOURCE Aaron Rents, Inc.
CONTACT: Gilbert L. Danielson, Executive Vice President and Chief
Financial Officer of Aaron Rents, Inc., +1-404-231-0011
Web site: http://www.aaronrents.com
(RNT)