Aaron 4Q profits jump 34.1%
By Furniture Today Staff -- Furniture Today, February 27, 2005
Atlanta — Rental and rent-to-own major Aaron Rents posted revenues of $242.1 million in the fourth quarter, up 15.6% compared with year-earlier results, as net income jumped 34.1% to $13.8 million from $10.3 million in 2003's final quarter.
Annual revenues were $946.5 million, up 23.4% from $766.8 million in 2003, as net income skyrocketed 44.4% to $52.6 million from 2003's $36.4 million.
In the fourth quarter, the sales and lease, or RTO, division increased revenues 17% to $214 million, compared with $183 million a year ago.
For the year, the division's revenues were $831.1 million, a 27% jump over $656.5 million in 2003.
Same-store revenues for company-owned stores were up 8% in the quarter, and franchise same-store sales rose 14.9%.
Franchise revenues, which are not part of Aaron's revenues, were $97.2 million in the fourth quarter and $358.7 million for the year, up 36% and 28%, respectively.
Looking ahead, Chairman and CEO Charles Loudermilk said, "Our guidance for the first quarter of 2005 is to expect revenues in excess of $270 million and diluted earnings per share in the range of 29 cents to 32 cents." He said 2005 revenues should exceed $1.1 billion, with EPS of $1.13 to $1.20.
| Aaron Rents | |||
|---|---|---|---|
| Earnings per share are fully diluted. | |||
| Quarter ended 12/31 | 2004 | 2003 | Change |
| (a) Includes non-rental revenues of $64.1 million in the 2004 quarter, $59.5 million in the 2003 quarter, $252.2 million in the 2004 year and $213 million in the 2003 year. (b) Revenues minus cost of sales, operating expenses and depreciation of rental merchandise. (c) Adjusted for a 2-for-3 partial stock split effective Aug. 16, 2004. |
|||
| Revenues (a) | $242,053,000 | $209,390,000 | 15.6% |
| Operating income(b) | 22,910,000 | 17,557,000 | 30.5% |
| Net income | 13,767,000 | 10,266,000 | 34.1% |
| Earnings per share (c) | 0.27 | 0.20 | 35.0% |
| Year ended 12/31 | 2004 | 2003 | Change |
| Revenues (a) | $946,480,000 | $766,797,000 | 23.4% |
| Operating income (b) | 89,919,000 | 63,625,000 | 41.3% |
| Net income | 52,616,000 | 36,426,000 | 44.4% |
| Earnings per share (c) | 1.04 | 0.73 | 42.5% |
Aaron 4Q profits jump 34.1%
02/24/2005
