Aaron '02 revenues up 17.2%
By Furniture Today Staff -- Furniture Today, March 2, 2003
Atlanta — A strong fourth quarter helped Aaron Rents to big gains in sales and earnings last year, despite losses at Sight & Sound, its recently acquired electronics store chain.
The rent-to-own and rental giant said 2002 revenues rose 17.2% to $640.7 million, while earnings more than doubled to $27.4 million. The 2001 earnings were reduced by a $5.6 million pretax, non-cash charge related to the company's rent-to-rent and manufacturing divisions.
Fourth-quarter revenues rose 25% to $175 million, while earnings quadrupled to $8.1 million or 37 cents a share.
Sight & Sound, a chain of 25 stores in Oklahoma and Kansas that Aaron's acquired in August, reduced earnings by about 5 cents per share in the fourth quarter and will account for a similar loss this quarter, the company said. The chain's performance should pick up later in the year as the company increases the stores' RTO volume and improves operations, said Gil Danielson, Aaron executive vice president and chief financial officer.
Meanwhile, Aaron's Sales & Lease Ownership division continued its rapid growth. Including $12 million related to Sight & Sound, its revenues increased 37% in the fourth quarter to $147.3 million. Systemwide, including franchised stores, the division grew 33% to $207.2 million.
For the year, company-owned Sales & Lease Ownership revenues grew 31% to $519 million and systemwide revenues were up 29% to $753 million. Same-store revenues were up 20.2% in the fourth quarter and 13% for the year.
Systemwide yearly revenues, including all Aaron's operations, rose 19% to $874.7 million. The company expects to top $1 billion this year, and looks to open 30 company-owned and 50 franchised Sales & Lease Ownership stores.
Earnings are projected at 38 cents to 40 cents per share in the current quarter and $1.55 to $1.65 per share for the year.
| Aaron Rents | |||
|---|---|---|---|
| Earnings per share are fully diluted. | |||
| Quarter ended 12/31 | 2002 | 2001 | Change |
| (a) Includes non-rental revenues of $57.4 million in the 2002 quarter, $38.6 million in the 2001 quarter, $181.5 million in the 2002 year and $143.3 million in the 2001 year. (b) Revenues minus cost of sales, operating expenses and depreciation of rental merchandise. (c) Based on average shares outstanding of 22 million in the 2002 quarter, 20.2 million in the 2001 quarter, 21.2 million in the 2002 year and 20.1 million in the 2001 year. (d) Includes a $5.6 million pretax non-cash charge related to the rent-to-rent and manufacturing divisions. |
|||
| Revenues(a) | $175,025,000 | $139,985,000 | 25.0% |
| Operating income(b) | 14,255,000 | 4,424,000 | 222.2% |
| Net income | 8,102,000 | 2,001,000 | 304.9% |
| Earnings per share(c) | 0.37 | 0.10 | 270.0% |
| Year ended 12/31 | 2002 | 2001 | Change |
| Revenues(a) | $640,688,000 | $546,681,000 | 17.2% |
| Operating income(b) | 48,419,000 | 26,113,000 | 85.4% |
| Net income | 27,440,000 | (d)12,336,000 | 122.4% |
| Earnings per share(c) | 1.29 | 0.61 | 111.5% |
Aaron's earnings jump 19% in fourth quarter
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