Aaron Rents 1Q profits up 47.7%
By Furniture Today Staff -- Furniture Today, May 4, 2003
Atlanta — Aaron Rents posted a 47.7% increase in first-quarter profits, propelled by the strength of its main Aaron's Sales & Lease Ownership division.
Net earnings increased to $8.7 million from $5.9 million in the same period a year ago. Revenues grew 22.1% to $191.3 million and same-store revenues rose 14.1%.
Systemwide revenues, which include the results of Aaron's franchise stores, increased 21% to $259.5 million, and the company said it's on track to do more than $1 billion in annual systemwide revenues for the first time.
The one negative came from Aaron's Sight & Sound retail stores, which negatively affected earnings by about 6 cents per share. Last month, the company converted six of the 25 Sight & Sound stores to Sales & Lease Ownership stores. It plans to close seven others, transferring their volume to nearby Aaron's stores.
Following the closings, Aaron "will be left with 12 stores that really have the best chance of making the model successful," said Ken Butler, president of the Sales & Lease Ownership division, in a conference call with the investment community.
Butler said all the former Heilig-Meyers stores Aaron acquired in 2000 and 2001 — about 80 units that were converted to Sales & Lease Ownership stores — are profitable.
Chairman and Chief Executive Officer Charlie Loudermilk said some franchisees are planning to open new stores. He noted a company field employee is seeking possible acquisitions, which would be on top of some 80 stores that Aaron plans to open this year.
In the quarter, Aaron added a net 21 stores, eight franchised and 13 company-owned. At the end of the quarter, Aaron had 400 company-owned Sales & Lease stores, 240 franchise stores, the 25 Sight & Sound stores and 70 rent-to-rent units.
Aaron expects earnings per share in the second quarter to be in the range of 38 cents to 40 cents vs. 32 cents for the same period last year. It held steady on its earnings guidance for the year at $1.55 to $1.65 per share compared to $1.29 last year.
| Aaron Rents | |||
|---|---|---|---|
| Earnings per share are fully diluted,. | |||
| Quarter ended 3/31 | 2003 | 2002 | Change |
| (a) Includes non-rental revenues of $60.2 million in the 2003 quarter and $44.2 million in the 2002 quarter . (b) Revenues minus cost of goods sold, operating expenses and depreciation of rental merchandise. (c) Based on average shares outstanding of 21.9 million in the 2003 quarter and 20.2 million in the 2002 quarter. |
|||
| Revenues (a) | $191,260,000 | $156,663,000 | 22.1% |
| Operating income (b) | 15,495,000 | 10,623,000 | 45.9% |
| Net income | 8,748,000 | 5,921,000 | 47.7% |
| Earnings per share (c) | 0.40 | 0.29 | 37.9% |
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Aaron Rents profits jump 26.7% in 4Q, 32.7% for yr.
Feb 29, 2004 -
Aaron's revenue jumps 24.3%
May 11, 2006 -
Aaron 3Q sales up, profits down
Nov 20, 2005 -
Aaron Rents revenues, earnings rise sharply
Nov 21, 2004 -
Aaron Rents earnings increase 46.5% in 1Q
May 2, 2004
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