Aaron Rents ?06 profit climbs 35.6%
By Furniture Today Staff -- Furniture Today, February 25, 2007
Atlanta — Rent-to-own powerhouse Aaron Rents said fourth-quarter revenues jumped 14.8% while net income rose more than 30%.
Most of the growth came from its Aaron's Sales and Lease Ownership division, whose fourth-quarter revenues were 17% above the fourth quarter of 2005.
Aaron's, which operated 1,345 company-owned and franchised stores at year's end, had total revenues of $339.9 million for the quarter ended Dec. 31, compared with $296.2 million for the final quarter of 2005.
Net income totaled $19.04 million or 35 cents per share in the quarter, compared with $14.61 million or 29 cents per share in the same period in 2005.
For the year, revenues were $1.33 billion, a 17.9% increase from 2005. Last year's net income totaled $78.6 million or $1.47 per share, a 35.5% increase from $58 million or $1.14 per share in 2005.
Charlie Loudermilk, chairman and CEO, said more than 100 units were added last year and more than 250 new stores are planned for 2007.
The Dec. 31 store count included 828 company-owned and 441 franchised Aaron's Sales and Lease Ownership stores, 17 Rimco stores and 59 corporate furnishings stores.
Loudermilk said he expects 2007 revenues to top $1.5 billion and said earnings per share should be $1.55 to $1.65.
| Aaron Rents | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 12/31 | 2006 | 2005 | Change |
| (a) Includes franchise royalties and fees of $8.9 million in the 2006 quarter, $7.7 million in the 2005 quarter, $33.6 million in the 2006 year and $29.8 million in the 2005 year. (b) Includes operating expenses of $658,000 in the 2006 fourth quarter and $3.5 million in the 2006 year related to the Jan. 1, 2006, adoption of new accounting guidelines for the use of stock options as compensation. (c) Based on average shares outstanding of 54.1 million in the 2006 quarter, 50 million in the 2005 quarter, 52.5 million in the 2006 year and 49.9 million in the 2005 year. | |||
| Revenues (a) | $339,869,000 | $296,152,000 | 14.8% |
| Operating income | 32,633,000 | 26,408,000 | 23.6% |
| Net income (b) | 19,041,000 | 14,608,000 | 30.3% |
| Earnings per share (c) | 0.35 | 0.29 | 20.7% |
| Year ended 12/31 | 2006 | 2005 | Change |
| Revenues (a) | $1,326,592,000 | $1,125,505,000 | 17.9% |
| Operating income | 134,439,000 | 100,856,000 | 33.3% |
| Net income (b) | 78,635,000 | 57,993,000 | 35.6% |
| Earnings per share (c) | 1.47 | 1.14 | 28.9% |
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