Printer Friendly

AARON RENTS REPORTS 245 PERCENT INCREASE IN NET EARNINGS FOR FIRST QUARTER

 AARON RENTS REPORTS 245 PERCENT INCREASE IN NET EARNINGS
 FOR FIRST QUARTER
 ATLANTA, July 27 /PRNewswire/ -- Aaron Rents, Inc. (NASDAQ: ARON), the nation's largest furniture rental and sales company, today announced net earnings for the first quarter increased 245 percent over the first quarter last year as the result of strong improvements in all areas of business.
 Revenues gained 11 percent, led by the rapidly growing Aaron's Rent- To-Own(R) division and a surge in sales by its contract office furniture subsidiary.
 "All indications are that Aaron Rents is on track with its plan for growth," said R. Charles Loudermilk Sr., chairman and chief executive officer of the company. "Our basic rental business is growing and the rent-to-own market has been even stronger than expected, and we are optimistic about the balance of the year. Rent-to-own apparently fills an important demand in this slow-growth economy."
 For the three months ended June 30, revenues advanced 11 percent to $39.1 million compared with $35.2 million a year ago. Net earnings increased to $1.6 million compared with $451,000 for the first quarter last year.
 Earnings per share reached $.37, compared to $.11 a year ago.
 Loudermilk said the across-the-board improvement from year-earlier results was marked by especially strong growth in the Aaron's Rent-To- Own(R) division, with revenues up 42 percent, and the Ball Stalker Co. contract office furniture subsidiary, which gained 88 percent in revenues.
 "In addition to higher revenues, the company has benefited from lower operating costs and from the efficiencies realized over the past 18 months as the result of closing unprofitable or marginal stores, continued acquisition of stores in stronger markets, the reorganization of management, and reduced costs of borrowing," Loudermilk said.
 Responding to the strong demand of the rent-to-own market, the Aaron's Rent-To-Own(R) division recently accelerated its program of opening company-owned stores with leases executed for seven new locations to open by Sept. 30.
 Future expansion in this market is also targeted by the Aaron's Rent-To-Own(R) franchise program introduced early this year. The fourth franchise in two months was awarded last week. Complementing company- owned stores located in major market areas, the franchise locations are in smaller markets offering the greatest growth potential.
 "The size of the rent-to-own market, combined with the acceptance of our products, provides an unusual growth opportunity," Loudermilk said. Thirty percent of the U.S. population are prospective rent-to-own customers, according to the Association of Progressive Rental Organizations (APRO), which estimates only about one-fourth of this market has been captured.
 Loudermilk said Aaron's Rent-To-Own(R) has the advantage of cost effective production of its proprietary lines of furniture at its own manufacturing facilities, plus a unique 12-month rent-to-own program, which provides a competitive advantage over the 18-24 month payout competitors offer.
 Aaron Rents, Inc., based in Atlanta, operates 150 stores in 22 states for the sale and rental of residential and office furniture and equipment. The company produces furniture at five plants in Georgia and Florida and recently opened its first business equipment rental store in Atlanta.
 AARON RENTS, INC.
 Period ended June 30
 (In thousands, except per share amounts)
 3 months 1992 1991
 Revenues $39,057 $35,215
 Net earnings 1,555 451
 Earnings per share .37 .11
 Weighted avg. shares outst. 4,230 4,227
 -0- 7/27/92
 /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


EA-BN -- AT005 -- 3422 07/27/92 10:25 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 27, 1992
Words:587
Previous Article:COMPANIA DE TELEFONOS DE CHILE S.A. ANNOUNCES RESULTS IN U.S. GAAP FOR THE THREE MONTHS ENDED MARCH 31, 1992
Next Article:MDL AND WEINER PUSHING ASBESTOS CLAIMS RESOLUTION IN RIGHT DIRECTION; PLAINTIFFS ATTORNEYS' CALL FOR REMAND IS 'A GIANT STEP BACKWARD'
Topics:


Related Articles
AARON RENTS ANNOUNCES THIRD QUARTER RESULTS; REPORTS SUBSTANTIAL EARNINGS INCREASE
AARON RENTS, INC. ANNOUNCES RECORD THIRD QUARTER AND NINE MONTH RESULTS
AARON RENTS REPORTS RECORD YEAR; DOUBLING EARNINGS
AARON RENTS, INC. SETS RECORD FOR SECOND QUARTER AND FIRST HALF; OPENS 10 MORE RENTAL PURCHASE STORES
AARON RENTS, INC. REPORTS RECORD REVENUES AND EARNINGS FOR FOURTH QUARTER AND FISCAL YEAR
AARON RENTS, INC. HAS THIRTEENTH CONSECUTIVE RECORD QUARTER; NET INCOME UP 31% FOR THIRD QUARTER AND NINE MONTHS
AARON RENTS REPORTS RECORD FIRST QUARTER RESULTS; EARNINGS INCREASE 27%
AARON RENTS, INC. REPORTS RECORD REVENUES AND EARNINGS
AARON RENTS REPORTS RECORD RESULTS FOR SECOND QUARTER AND FIRST HALF
Aaron Rents Reports Record Revenues And Earnings For Third Quarter and Nine Months

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters