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AARON RENTS ANNOUNCES THIRD QUARTER RESULTS; REPORTS SUBSTANTIAL EARNINGS INCREASE

 AARON RENTS ANNOUNCES THIRD QUARTER RESULTS;
 REPORTS SUBSTANTIAL EARNINGS INCREASE
 ATLANTA, Jan. 30 /PRNewswire/ -- Aaron Rents, Inc. (NASDAQ: ARON), the nation's largest furniture rental and sales company, today announced results of operations for the third quarter and nine months of its fiscal year.
 Net earnings for the third quarter were $882,000, or $.21 per share, compared to a loss of $1.4 million or $.32 per share for the third quarter a year ago. Net earnings for the nine-month period were $2.0 million, or $.47 per share, compared to $165,000 or $.04 per share for the previous year. Third quarter results a year ago included $2.2 million of after-tax charges relating to increased depreciation expense, provisions for future costs associated with closed locations, and other unusually large items.
 Revenues for the third quarter were $33.1 million compared to $34.7 million for the same period a year ago. Revenues for the nine- month period were $104.6 million vs. $106.1 million last year. Although total revenues were down, rental revenues were up 7 percent in the third quarter and 8 percent for the nine-month period. The lower total revenues for both the quarter and year-to-date were due to a decline in retail furniture sales at both Aaron Rents outlets and the company's Ball Stalker subsidiary.
 "We are encouraged with the rental segment of our business," R. Charles Loudermilk Sr., chairman and chief executive officer, said. "Our rental revenues continue to grow, led by our Aaron's Rent-To-Own(R) stores. Over the past several years we have been concentrating on increasing rental revenue and decreasing emphasis on new furniture sales. As planned, this strategy has resulted in lower total revenues and improved earnings performance."
 Loudermilk stated that the company has now begun to market Aaron's Rent-To-Own(R) franchise opportunities. He reiterated that he is very pleased with the performance of the 30 company-owned rent-to-own stores, and is optimistic on the prospects for franchising this concept. It is expected that the first franchise will be sold within the next several months. In addition, Loudermilk also announced the forming of a new business unit, Aaron Rents Business Equipment, which will rent personal computers, fax machines, copiers and other business equipment and accessories. The initial store will be in Atlanta and will assist Aaron Rents office furniture rental stores in servicing their customers.
 Aaron Rents, Inc., based in Atlanta, operates over 155 stores in 23 states for the sale and rental of residential and office furniture. The company produces furniture at five plants in Georgia and Florida.
 AARON RENTS, INC.
 3 mos. ended 9 mos. ended
 12/31/91 12/31/90 12/31/91 12/31/90
 (In thousands, except per share amounts)
 Revenues $33,059 $34,734 $104,550 $106,057
 Net earnings (loss)(a) 882 (1,355) 1,991 165
 Earnings (loss) per
 share .21 (.32) .47 .04
 Weighted average
 shares outstanding 4,228 4,297 4,228 4,453
 (a) During the three-month period ended Dec. 31, 1990, the company recorded $2,236,000 of large unusual charges to net earnings.
 -0- 1/30/92
 /CONTACT: Gilbert L. Danielson, vice president - Finance and chief financial officer of Aaron Rents, 404-231-0011/
 (ARON) CO: Aaron Rents, Inc. ST: Georgia IN: REA SU: ERN


BR-BN -- AT008 -- 5179 01/30/92 11:04 EST
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Publication:PR Newswire
Date:Jan 30, 1992
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