Aaron's revenue jumps 24.3%
By Furniture Today Staff -- Furniture Today, April 27, 2006
Atlanta — Rent-to-own major Aaron Rents posted across-the-board double-digit increases in the first quarter as revenues soared 24.3%, net profits surged 17% and same-store revenues jumped 10.7%.
Revenues at the country's second-largest RTO chain reached $347.3 million in the latest quarter, versus $279.3 million in the comparable 2005 period. Net earnings were $21.6 million, up from $18.4 million last year.
Aaron's Corporate Furnishings division increased revenues 7% in the quarter to $32.3 million, compared with $30.2 million in the same period a year ago. Franchise revenues, not a part of Aaron's revenues, increased 18% to $127.4 million.
"We are extremely pleased with these results and feel good about our prospects for the remainder of 2006," said Aaron Chairman and CEO Charlie Loudermilk.
"Our guidance for the second quarter of 2006 is to expect revenues in excess of $310 million and diluted earnings per share, prior to the stock offering announced separately today, in the range of 34 cents to 36 cents," said Loudermilk.
He said full-year revenues are anticipated to be more than $1.3 billion, and the company plans to increase its store count by about 15% per year over the next several years.
In the latest quarter, Aaron's Sales & Lease Ownership division opened 13 company-operated stores and 11 franchised stores. The company also acquired three franchised stores, and the accounts from two other third-party stores were purchased and merged into existing stores.
| Aaron Rents | |||
|---|---|---|---|
| Earnings per share are fully diluted. | |||
| Quarter ended 3/31 | 2006 | 2005 | Change |
| (a) Includes non-rental revenues of $93 million in the 2006 quarter and $70.2 million in the 2005 quarter. (b) Revenues minus cost of sales, operating expenses and depreciation of rental merchandise. |
|||
| Revenues (a) | $347,287,000 | $279,348,000 | 24.3% |
| Operating income (b) | 37,853,000 | 31,218,000 | 21.3% |
| Net income | 21,561,000 | 18,422,000 | 17.0% |
| Earnings per share | 0.42 | 0.36 | 16.7% |
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Aaron's revenue jumps 24.3%
Apr 28, 2006 -
Aaron's revenue up 18.6%
Aug 27, 2006
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