Aaron's revenue up 18.6%
By Furniture Today Staff -- Furniture Today, August 13, 2006
Atlanta — Revenue increases across all divisions fueled an 18.6% jump in total revenues in the second quarter and 21.5% in the six months for rental and rent-to-own major Aaron Rents.
Aaron's Sales and Lease Ownership division posted revenue gains of 20% and 23% for the quarter and six months, respectively.
Revenues in the latest quarter came to $321.7 million, compared with $271.3 million a year ago. Net profits surged 28.1% to $20.6 million. For the six months, Aaron recorded revenues of $669 million, up from $550.7 million a year ago, and net income of $42.2 million, up 22.2%.
Same-store revenues in company-owned stores jumped 9.1% in the quarter and 6% in the six months.
"Our business plan remains to rapidly increase our revenues and store base through the opening of new company-operated and franchised stores, plus selective acquisitions," said Chairman and CEO Charles Loudermilk. "We are very confident of the prospects for our business and are accelerating our store opening plans.
"We anticipate adding approximately 350 new Aaron's Sales and Lease Ownership stores over the next 18 months, a 30% increase over the current store base," he said.
During the latest quarter, the company opened 12 company-operated stores and 15 franchised stores. Aaron also acquired eight franchised stores and three stores from independent rental operators, and purchased the accounts of four other third-party stores. The company sold all 12 of its stores in Puerto Rico.
| Aaron Rents | |||
|---|---|---|---|
| Earnings per share are fully diluted. | |||
| Quarter ended 6/30 | 2006 | 2005 | Change |
| (a) Includes non-rental revenues of $75.9 million in the 2006 quarter, $64.7 million in the 2005 quarter, $169 million in the 2006 six months and $134.9 million in the 2005 six months. (b) Revenues minus cost of sales, operating expenses and depreciation of rental merchandise. (c) Based on average shares outstanding of 52.7 million in the 2006 quarter, 51.9 million in the 2006 six months and 50.8 million in the 2005 periods. |
|||
| Revenues (a) | $321,727,000 | $271,338,000 | 18.6% |
| Operating income (b) | 34,414,000 | 27,381,000 | 25.7% |
| Net income | 20,650,000 | 16,120,000 | 28.1% |
| Earnings per share (c) | 0.39 | 0.32 | 21.9% |
| 6 months ended 6/30 | 2006 | 2005 | Change |
| Revenues (a) | $669,014,000 | $550,686,000 | 21.5% |
| Operating income (b) | 72,267,000 | 58,599,000 | 23.3% |
| Net income | 42,211,000 | 34,542,000 | 22.2% |
| Earnings per share (c) | 0.81 | 0.68 | 19.1% |
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Aaron's revenue up 18.6%
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