Aaron Rents, Inc. Reports Record First Quarter Results

Apr 25, 2001, 01:00 ET from Aaron Rents, Inc.

    ATLANTA, April 25 /PRNewswire/ -- Aaron Rents, Inc. (NYSE:   RNT), the
 nation's leader in the rental, sales and lease ownership, and specialty
 retailing of residential and office furniture, consumer electronics and home
 appliances, today announced record revenues and earnings for the first quarter
 of 2001.
     For the three months ended March 31, 2001, revenues advanced 13% to a
 record $141.4 million compared to $125.4 million for the first quarter of
 2000.  Net earnings for the first quarter increased to $7.3 million and
 $.37 per share on a diluted basis compared to $.36 per share for the same
 period last year.
     Systemwide revenues for the Company, which includes revenues of franchised
 stores, advanced 17% to $189.4 million for the quarter versus $161.7 million a
 year ago.
     The Company's Aaron's Sales and Lease Ownership division continued its
 strong expansion, increasing its revenues 23% to a record $97.8 million for
 the first quarter compared to $79.4 million for the same period in 2000.
 Systemwide revenues for the division were $145.8 million, an increase of 26%
 over last year's quarter.  Revenues from Company-operated sales and lease
 ownership stores open in comparable quarters increased 12.6% during the first
 quarter compared to the same period a year ago.  The division opened 12 new
 stores in the first quarter, seven Company-operated and five franchised
 stores, and added eight stores through acquisition, bringing the total of
 sales and lease ownership stores open at the end of March to 476.
     Revenues from the Company's rent-to-rent stores open in comparable
 quarters were down 0.5% during the quarter compared to the same period a year
 ago.
     "We are pleased with the strong revenue growth of our Aaron's Sales and
 Lease Ownership stores and the progress of our previously announced
 accelerated store opening plan," said R. Charles Loudermilk, Sr., Chairman and
 Chief Executive Officer.  "During the quarter we opened four of the former
 Heilig-Meyers locations acquired last December, and early results of the ramp-
 up of these stores is encouraging.  We plan to open 20 more of the former
 Heilig-Meyers locations in the second quarter.  As expected, the up-front
 costs associated with opening these new stores along with the carry-over of
 start-up losses of stores open within the past year affected our earnings
 growth this quarter.  We anticipate, however, substantial earnings improvement
 in the latter part of 2001 as a result of these new store openings."
     Aaron Rents, Inc., based in Atlanta, currently has more than 575 Company-
 operated and franchised stores in 42 states and Puerto Rico for the rental and
 sale of residential and office furniture, accessories, consumer electronics
 and household appliances.  The Company also manufactures furniture, bedding
 and accessories at 11 facilities in four states.
 
     Note: Forward-looking statements in this news release are based on current
 expectations and are subject to risks and uncertainties, and actual results
 may vary materially from the expectations due to such factors as changes in
 general economic conditions, competition, pricing, customer demand and other
 issues.
 
     "Safe Harbor" Statement under the Private Securities Litigation Reform Act
 of 1993: Statements in this news release regarding Aaron Rents, Inc.'s
 business which are not historical facts are "forward-looking statements" that
 involve risks and uncertainties which could cause actual results to differ
 from those contained in the forward-looking statements.  For a discussion of
 such risks and uncertainties, see "Risk Factors" in the Company's Annual
 Report on Form 10-K for fiscal 2000, which discussion is incorporated herein
 by this reference.
 
                       Aaron Rents, Inc. and Subsidiaries
                      Consolidated Statements of Earnings
                    (In thousands, except per share amounts)
 
                                                           (Unaudited)
                                                       Three Months Ended
                                                             March 31,
                                                       2001           2000
 
     Revenues:
       Rentals and Fees                              $102,068        $87,514
       Retail Sales                                    17,276         17,305
       Non-Retail Sales                                17,946         16,830
       Other                                            4,127          3,723
        Total                                         141,417        125,372
 
     Costs and Expenses:
       Retail Cost of Sales                            12,222         12,233
       Non-Retail Cost of Sales                        16,729         15,493
       Operating Expenses                              66,554         56,415
       Depreciation of Rental Merchandise              32,482         28,263
       Interest                                         1,628          1,227
        Total                                         129,615        113,631
 
     Earnings Before Taxes                             11,802         11,741
 
     Income Taxes                                       4,473          4,463
 
     Net Earnings                                      $7,329         $7,278
 
     Earnings Per Share                                  $.37           $.37
 
     Earnings Per Share Assuming Dilution                $.37           $.36
 
     Weighted Average Shares Outstanding               19,870         19,900
 
     Weighted Average Shares Outstanding
      Assuming Dilution                                20,074         20,091
 
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SOURCE Aaron Rents, Inc.
    ATLANTA, April 25 /PRNewswire/ -- Aaron Rents, Inc. (NYSE:   RNT), the
 nation's leader in the rental, sales and lease ownership, and specialty
 retailing of residential and office furniture, consumer electronics and home
 appliances, today announced record revenues and earnings for the first quarter
 of 2001.
     For the three months ended March 31, 2001, revenues advanced 13% to a
 record $141.4 million compared to $125.4 million for the first quarter of
 2000.  Net earnings for the first quarter increased to $7.3 million and
 $.37 per share on a diluted basis compared to $.36 per share for the same
 period last year.
     Systemwide revenues for the Company, which includes revenues of franchised
 stores, advanced 17% to $189.4 million for the quarter versus $161.7 million a
 year ago.
     The Company's Aaron's Sales and Lease Ownership division continued its
 strong expansion, increasing its revenues 23% to a record $97.8 million for
 the first quarter compared to $79.4 million for the same period in 2000.
 Systemwide revenues for the division were $145.8 million, an increase of 26%
 over last year's quarter.  Revenues from Company-operated sales and lease
 ownership stores open in comparable quarters increased 12.6% during the first
 quarter compared to the same period a year ago.  The division opened 12 new
 stores in the first quarter, seven Company-operated and five franchised
 stores, and added eight stores through acquisition, bringing the total of
 sales and lease ownership stores open at the end of March to 476.
     Revenues from the Company's rent-to-rent stores open in comparable
 quarters were down 0.5% during the quarter compared to the same period a year
 ago.
     "We are pleased with the strong revenue growth of our Aaron's Sales and
 Lease Ownership stores and the progress of our previously announced
 accelerated store opening plan," said R. Charles Loudermilk, Sr., Chairman and
 Chief Executive Officer.  "During the quarter we opened four of the former
 Heilig-Meyers locations acquired last December, and early results of the ramp-
 up of these stores is encouraging.  We plan to open 20 more of the former
 Heilig-Meyers locations in the second quarter.  As expected, the up-front
 costs associated with opening these new stores along with the carry-over of
 start-up losses of stores open within the past year affected our earnings
 growth this quarter.  We anticipate, however, substantial earnings improvement
 in the latter part of 2001 as a result of these new store openings."
     Aaron Rents, Inc., based in Atlanta, currently has more than 575 Company-
 operated and franchised stores in 42 states and Puerto Rico for the rental and
 sale of residential and office furniture, accessories, consumer electronics
 and household appliances.  The Company also manufactures furniture, bedding
 and accessories at 11 facilities in four states.
 
     Note: Forward-looking statements in this news release are based on current
 expectations and are subject to risks and uncertainties, and actual results
 may vary materially from the expectations due to such factors as changes in
 general economic conditions, competition, pricing, customer demand and other
 issues.
 
     "Safe Harbor" Statement under the Private Securities Litigation Reform Act
 of 1993: Statements in this news release regarding Aaron Rents, Inc.'s
 business which are not historical facts are "forward-looking statements" that
 involve risks and uncertainties which could cause actual results to differ
 from those contained in the forward-looking statements.  For a discussion of
 such risks and uncertainties, see "Risk Factors" in the Company's Annual
 Report on Form 10-K for fiscal 2000, which discussion is incorporated herein
 by this reference.
 
                       Aaron Rents, Inc. and Subsidiaries
                      Consolidated Statements of Earnings
                    (In thousands, except per share amounts)
 
                                                           (Unaudited)
                                                       Three Months Ended
                                                             March 31,
                                                       2001           2000
 
     Revenues:
       Rentals and Fees                              $102,068        $87,514
       Retail Sales                                    17,276         17,305
       Non-Retail Sales                                17,946         16,830
       Other                                            4,127          3,723
        Total                                         141,417        125,372
 
     Costs and Expenses:
       Retail Cost of Sales                            12,222         12,233
       Non-Retail Cost of Sales                        16,729         15,493
       Operating Expenses                              66,554         56,415
       Depreciation of Rental Merchandise              32,482         28,263
       Interest                                         1,628          1,227
        Total                                         129,615        113,631
 
     Earnings Before Taxes                             11,802         11,741
 
     Income Taxes                                       4,473          4,463
 
     Net Earnings                                      $7,329         $7,278
 
     Earnings Per Share                                  $.37           $.37
 
     Earnings Per Share Assuming Dilution                $.37           $.36
 
     Weighted Average Shares Outstanding               19,870         19,900
 
     Weighted Average Shares Outstanding
      Assuming Dilution                                20,074         20,091
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X36633554
 
 SOURCE  Aaron Rents, Inc.