0000931763-95-000136.txt : 19950815 0000931763-95-000136.hdr.sgml : 19950815 ACCESSION NUMBER: 0000931763-95-000136 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950814 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: AARON RENTS INC CENTRAL INDEX KEY: 0000706688 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-EQUIPMENT RENTAL & LEASING, NEC [7359] IRS NUMBER: 580687630 STATE OF INCORPORATION: GA FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-12385 FILM NUMBER: 95563248 BUSINESS ADDRESS: STREET 1: 3001 N FULTON DR NE STREET 2: 1100 AARON BLDG CITY: ATLANTA STATE: GA ZIP: 30363 BUSINESS PHONE: 4042310011 MAIL ADDRESS: STREET 1: 309 E. PACES FERRY ROAD., N.E. STREET 2: 3001 N FULTON DRIVE NE CITY: ATLANTA STATE: GA ZIP: 30305-2377 10-Q 1 FORM 10-Q FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Quarterly Report under Section 13 or 15 (d) of the Securities Exchange Act of l934 June 30, 1995 0-12385 ------------------ ------------------- For Quarter Ended Commission File No. AARON RENTS, INC. ------------------------------------------ (Exact name of registrant as specified in its charter) GEORGIA 58-0687630 ------------------------------- ---------- (State or other jurisdiction of (I.R. S. Employer incorporation or organization) Identification No. 309 EAST PACES FERRY ROAD, N.E. Atlanta, Georgia 30305-2377 ---------------------------------------- ------------- (Address of principal executive offices) (Zip Code) (404) 231-0011 -------------- (Registrant's telephone number, including area code) NOT APPLICABLE -------------- (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether registrant (l) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of l934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ------- ------- Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Shares Outstanding as of Title of Each Class August 12, 1995 ------------------- ------------------------ Class A Common Stock, $.50 Par Value 4,018,263 Class B Common Stock, $.50 Par Value 5,703,730 PART 1 - FINANCIAL INFORMATION ITEM 1 - FINANCIAL STATEMENTS AARON RENTS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
(unaudited) June 30, March 31, 1995 1995 ----------- ----------- (in thousands) ASSETS: Cash $ 91 $ 95 Accounts Receivable 8,600 8,391 Rental Merchandise 173,891 172,741 Less: Accumulated Depreciation (52,494) (51,385) ---------- ---------- 121,397 121,356 Property, Plant and Equipment, Net 24,051 24,181 Prepaid Expenses and Other Assets 3,224 3,504 ---------- ---------- Total Assets $ 157,363 $ 157,527 ============ =========== LIABILITIES AND SHAREHOLDERS' EQUITY: Accounts Payable and Accrued Expenses $ 18,872 $ 19,062 Dividends Payable 367 Current Income Taxes Payable 1,545 Deferred Income Taxes Payable 3,903 4,126 Customer Deposits and Advance Payments 6,292 6,229 Bank Debt 39,445 42,172 Other Debt 658 987 ---------- ---------- 71,082 72,576 Shareholders' Equity: Common Stock, Class A, Par Value $.50 Per Share-Authorized 25,000,000 shares: 5,361,761 Shares Issued 2,681 2,681 Common Stock, Class B, Par Value $.50 Per Share-Authorized 25,000,000 shares: 6,636,761 Shares Issued 3,318 3,318 Additional Paid in Capital 15,314 15,314 Retained Earnings 80,165 77,216 ----------- ---------- 101,478 98,529 Less Treasury Shares at Cost, Class A Common Stock, 1,344,498 Shares at June 30, 1995 and 1,234,748 Shares at March 31, 1995 (9,943) (8,324) Class B Common Stock, 944,031 Shares at June 30, 1995 and 944,031 Shares at March 31, 1995 (5,254) (5,254) ----------- ---------- 86,281 84,951 ----------- ---------- Total Liabilities and Shareholders' Equity $ 157,363 $ 157,527 =========== ============
See Notes to Consolidated Financial Statements AARON RENTS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
Three Months Ended ------------------------- June 30, ------------------------- 1995 1994 ----------- ----------- (in thousands, except per share amounts) REVENUES: Rentals and Fees $45,690 $41,708 Sales 12,858 13,459 Other 587 428 ------- ------- 59,135 55,595 ------- ------- COSTS AND EXPENSES: Cost of Sales 9,114 9,692 Operating Expenses 30,025 28,230 Depreciation of Rental Merchandise 13,899 12,720 Interest 750 680 ------- ------- 53,788 51,322 ------- ------- EARNINGS BEFORE TAXES 5,347 4,273 INCOME TAXES 2,032 1,666 ------- ------- NET EARNINGS $ 3,315 $ 2,607 ======= ======= EARNINGS PER SHARE $ .33 $ .27 ======= ======= WEIGHTED AVERAGE SHARES OUTSTANDING 10,037 9,603 ======= =======
3 AARON RENTS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Three Months Ended June 30, 1995 1994 ----------- ---------- (in thousands) OPERATING ACTIVITIES: Net Income $ 3,315 $ 2,607 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 15,356 13,889 Decrease in deferred taxes (223) (315) Decrease in accounts payable and accrued expenses (190) (613) Increase in accounts receivable (209) (472) Other changes, net 1,889 879 -------- ------- Cash provided by operations 19,938 15,975 -------- ------- INVESTING ACTIVITIES: Additions to property, plant and equipment (2,793) (2,493) Book value of property retired or sold 1,467 149 Additions to rental merchandise (23,760) (31,569) Book value of rental merchandise sold 9,819 9,973 -------- ------- Cash used by investing activities (15,267) (23,940) -------- ------- FINANCING ACTIVITIES: Proceeds from Revolving Credit Agreement 19,644 65,625 Repayments on Revolving Credit Agreement (22,371) (71,489) Decrease in other debt (329) (364) Acquisition of treasury stock (1,619) Sale of common stock 14,140 Issuance of stock under stock option plan 54 -------- ------- Cash (used) provided by financing activities (4,675) 7,966 -------- ------- (DECREASE) INCREASE IN CASH (4) 1 Cash at Beginning of Period 95 86 -------- ------- Cash at End of Period $ 91 $ 87 ======== =======
See Notes to Consolidated Financial Statements AARON RENTS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Principles of Consolidation: ------------------------------- The consolidated financial statements include the accounts of Aaron Rents, Inc. ("the Company") and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Interim Financial Statement: ------------------------------- The Consolidated Balance Sheet as of June 30, 1995, and the Consolidated Statements of Earnings and Cash Flows for the three months ended June 30, 1995 and 1994, have been prepared without audit. In the opinion of management, all adjustments necessary to present fairly the financial position, results of operations and cash flows at June 30, 1995 and for all periods presented have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission for the year ended March 31, 1995. The results of operations for the period ended June 30, 1995, are not necessarily indicative of the operating results for the full year. 5 PART I - FINANCIAL INFORMATION ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS: ------------------------- FIRST QUARTER OF FISCAL YEAR 1996 COMPARED TO FIRST QUARTER OF FISCAL YEAR 1995: Total revenues for the first quarter of fiscal year 1996 increased $3.5 million (6.4%) to $59.1 million from $55.6 million for the same period a year ago. This increase was due to a $4.0 million (9.5%) increase in rentals and fees revenues. Of this increase in rental revenues, $4.9 million was attributable to Aaron's Rental Purchase stores in which rental revenues increased 30% to $21.5 million in the first quarter of fiscal year 1996 compared to $16.6 million for the same quarter a year ago. Revenues from sales declined $601,000 (4.5%) to $12.9 million from $13.5 million a year ago. This decrease is due to a lower amount of sales of new furniture in the current fiscal year. Other revenues in the first quarter increased $159,000 (37.1%) to $587,000 compared to $428,000 a year ago. Included in other revenues is franchise and royalty fee income from franchised operations. Franchise and royalty fee income for the current quarter was $345,000 compared to $168,000 for the same period a year ago. Cost of sales decreased $578,000 million (6.0%) to $9.1 million compared to $9.7 million for the first quarter last year, and as a percentage of sales decreased to 70.9% from 72.0%. The improvement in gross margins is primarily due to improved margins on the sale of rental return furniture. Operating expenses increased $1.8 million (6.4%) to $30.0 million from $28.2 million. As a percentage of total revenues, operating expenses were 50.8% in both years. Depreciation of rental merchandise increased $1.2 million (9.3%) to $13.9 million from $12.7 million last year, and as a percentage of total rentals and fees was 30.4% in the current quarter compared to 30.5% for the same quarter a year ago. Interest expense increased $70,000 (10.3%) to $750,000 in the first quarter of fiscal year 1996 compared to $680,000 for the same quarter last year. The increase in interest expense was primarily due to increased borrowing rates in the current quarter. Income tax expense increased $366,000 (22.0%) to $2.0 million compared to $1.7 million a year ago, and the Company's effective tax rate was 38.0% for the first quarter of the current year compared to 39.0% in the previous year's quarter. The decrease in the effective tax rate is due to lower amounts provided for permanent differences. As a result, net earnings increased $708,000 (27.2%) to $3.3 million in the first quarter of fiscal year 1996 compared to $2.6 million a year ago. As a percentage of total revenues, net earnings were 5.6% in the first quarter compared to 4.7% a year ago. The weighted average number of shares outstanding during the first quarter of fiscal year 1996 was 10,037,000 compared to 9,603,000 for the same period last year. The increase in the number of shares is due to the issuance of 1,275,000 shares of Class B Common Stock on May 2, 1994. 6 LIQUIDITY AND CAPITAL RESOURCES: -------------------------------- On May 2, 1994, the Company issued through a public offering 1,275,000 shares of Class B Common Stock. The net proceeds to the Company after deducting underwriting discounts and offering expenses were $14.1 million. The net proceeds were used to reduce bank debt. During the first quarter of fiscal year 1996, the Company declared a semi- annual dividend payable on July 6, 1995 of $.02 per share on Class A Common Stock and $.05 per share on Class B Common Stock. Management believes its expected cash flow from operations, proceeds from the sale of rental return merchandise, bank borrowings, and vendor credit are adequate to supply short-term capital needs, and that it has the ability to obtain additional long-term capital if needed. 7 PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K: (a) The following exhibits are furnished herewith: Exhibit Number Description of Exhibit ------ ---------------------- 10(b) Letter agreements dated June 19, 1995, between First Union National Bank of North Carolina and the Company and June 20, 1995, between Trust Company Bank and the Company regarding an Interest Rate Swap Transaction 11 Computation of Earnings Per Share 27 Financial Data Schedule (b) No reports on Form 8-K were filed by the Registrant during the three months ended June 30, 1995. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of l934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. AARON RENTS, INC. (Registrant) Date - August 11, 1995 /s/ GILBERT L. DANIELSON --------------- -------------------- Gilbert L. Danielson Vice President, Finance Chief Financial Officer Date - August 11 , 1995 /s/ ROBERT P. SINCLAIR, JR. ---------------- ----------------------- Robert P. Sinclair, Jr. Controller 9 EX-10.B 2 SWAP TRANSACTION [FIRST UNION LETTERHEAD] EXHIBIT 10(B) SWAP TRANSACTION DATE: June 19, 1995 TO: Gilbert L. Danielson Aaron Rents Inc. 1100 Aaron Building 3001 N. Fulton Drive NE Atlanta, GA Phone: (404) 231-0011 Fax: (404) 240-6584 FROM: First Union National Bank of North Carolina SUBJECT: Interest Rate Swap REF. NO. 10413/11295 -------------------------------------------------------------------------------- Dear Mr. Danielson: The purpose of this letter agreement is to confirm the terms and conditions of the transaction entered into between Aaron Rents Inc. ("Counterparty") and First Union National Bank of North Carolina ("First Union") on the Trade Date specified below (the "Transaction"). This letter agreement constitutes a "Confirmation" as referred to in the Master Agreement specified below. 1. The definitions and provisions contained in the 1991 ISDA Definitions (as published by the International Swap and Derivatives Association, Inc.) (the "Definitions"), are incorporated into this Confirmation. In the event of any inconsistency between those definitions and provisions and this Confirmation, this Confirmation will govern. If you and we are parties to a Master Agreement that sets forth the general terms and conditions applicable to Swap Transactions between us (a "Swap Agreement"), this Confirmation supplements, forms a part of, and is subject to, such Swap Agreement. If you and we are not yet parties to a Swap Agreement, this Confirmation will supplement, form a part of, and be subject to, a Swap Agreement upon its execution by you and us. All provisions contained or incorporated by reference in such Swap Agreement shall govern this Confirmation except as expressly modified below. In addition, if a Swap Agreement has not been executed, this Confirmation will itself evidence a complete binding agreement between you and us as to the terms and conditions of the Swap Transaction to which this Confirmation relates. Each party is hereby advised, and each such party acknowledges, that the other party has engaged in (or refrained from engaging in) substantial financial transactions and has taken other material actions in reliance upon the parties' entry into the Swap Transaction to which this Confirmation relates on the terms and conditions set forth below. If on any Calculation Date (or if, for any Calculation period, as applicable), (a) the product of the Fixed Rate and the Fixed Rate Day Count Fraction exceeds the product of the Floating Rate (plus or minus the Spread, if applicable) and the Floating Rate Day Count Fraction, the Fixed Rate Payer shall pay the Floating Rate Payer, on the relevant Payment Date, an amount equal to such excess multiplied by the Notional amount, (b) the product of the Floating Rate (plus or minus the spread if applicable) and the Floating Rate Day Count Fraction exceeds the product of the Fixed Rate and the Fixed Rate Day Count Fraction, the Floating Rate Payer shall pay the Fixed Rate Payer, on the relevant Payment Date, an amount equal to such excess multiplied by the Notional Amount, or (c) the product of the Fixed Rate and the Fixed Rate Day Count Fraction is equal to the product of the Floating Rate (plus or minus the Spread, if applicable) and the Fixed Rate Day Count Fraction, no amount shall be due by either side on the relevant Payment Date. Each party's obligation to make payment of any amount which would otherwise by due hereunder on a Payment Date shall be automatically satisfied and discharged by payment of the net amount due on such Payment Date, determined by the foregoing manner. This Confirmation will be governed by and construed in accordance with the laws of the State of New York, without reference to choice of law doctrine, provided that this provision will be superseded by any choice of law provisions contained in the Swap Agreement. 2. The terms of the particular Transaction to which this Confirmation relates are as follows: Transaction Type: Interest Rate Swap Trade Date: June 16, 1995 Effective Date: June 23, 1995 Termination Date: June 23, 2005, subject to adjustment in accordance with the Modified Following Business Day Convention Notional Amount: $10,000,000.00 Fixed Amounts: Fixed Rate Payer: Counterparty Fixed Rate Payer Quarterly on the 23rd day of Payment Dates: each June, September, December, and March commencing September 23, 1995, through and including the Termination Date, subject to the Modified Following Business Day Convention. 2 Fixed Rate: 6.35% Fixed Rate Day ACT/360 Count Fraction: Floating Amounts: Floating Rate Payer: First Union Floating Rate Payer Quarterly on the 23th day of Payment Dates: each June, September, December, and March commencing September 23, 1995, through and including the Termination Date, subject to the Modified Following Business Day Convention. Floating Rate Option: USD-LIBOR-BBA Designated Maturity: 3 Month Spread: None Floating Rate Day ACT/360 Count Fraction: Reset Dates: Quarterly on the 23th day of each September, December, March, and June commencing June 23, 1995, through and including March 23, 2005, subject to the Modified Following Business Day Convention. Compounding: Inapplicable Calculation Agent: First Union Business Days: New York Payments to First Union: First Union Charlotte Capital Markets Attention: Derivatives Desk Fed. ABA No. 053000219 Ref. No.: 10413/11295 First Union Settlements: Brian Hall Derivatives Desk Ph. No.: 704-383-1185 Fax No.: 704-383-9139 3 Payments to Counterparty: Please forward instructions to FUNB-NC. No payments will be made prior to receipt of Counterparty's payment instructions. First Union Address: One First Union Center 301 South College Street TW-9 Charlotte, NC 28288-0601 Please confirm that the foregoing correctly sets forth the terms of our agreement by executing a copy of this Confirmation enclosed for that purpose and returning it to us. Very truly yours, FIRST UNION NATIONAL BANK OF NORTH CAROLINA By: /s/ Joseph M. Nenichka ------------------------ Name: Joseph M. Nenichka Title: Vice President Date: ----------------- By: /s/ David Kitchen ------------------------ Name: David Kitchen Title: Vice President Date: ----------------- Accepted and confirmed as of the date first above written: AARON RENTS INC. By: /s/ Gilbert L. Danielson --------------------------- Name: Gilbert L. Danielson ------------------------- Title: Vice President, Finance ------------------------- Date: July 17, 1995 ------------------------- 4 [TRUST COMPANY BANK LETTERHEAD] June 20, 1995 CONFIRMATION OF INTEREST RATE SWAP TRANSACTION Mr. Gilbert L. Danielson Vice President - Finance Aaron Rents, Inc. 309 East Paces Ferry Road, N.E. Atlanta, GA 30305 Dear Mr. Danielson: The purpose of this letter agreement is to set forth the terms and conditions of the Rate Swap Transaction entered into between you and Trust Company Bank on the Trade Date specified below (the "Transaction" or "Rate Swap Transaction"). This letter agreement constitutes a "Confirmation" as referred to in either the ISDA Master Agreement or the Interest Rate and Currency Exchange Agreement entered into by the parties hereto, prior to, or on the date hereof. The definitions and provisions contained in the 1991 ISDA Definitions (the "Definitions") published by the International Swap Dealers Association, Inc. ("ISDA") are incorporated by reference into this Confirmation. In the event of any inconsistency between the Definitions and this Confirmation, this Confirmation will govern. 1. This Confirmation supplements, forms a part of, and is subject to either the ISDA Master Agreement or the Interest Rate and Currency Exchange Agreement (a "SWAP Agreement"), as amended and supplemented from time to time, between you and Trust Company Bank. All provisions contained or incorporated by reference in the Swap Agreement shall govern this Confirmation except as expressly modified below. In the event that you and Trust Company Bank have not entered into s Swap Agreement, this Transaction is subject to the 1992 Master Agreement. Prior to the execution and delivery of such Swap Agreement, this Confirmation alone shall constitute a complete and binding agreement with respect to the Transaction. Each party is hereby advised, and each such party acknowledges, that the other party has engaged in (or refrained from engaging in) substantial financial transactions and has taken other material actions in reliance upon the parties' entry in the Rate Swap Transaction to which this Confirmation relates on the terms and conditions set forth below. This Confirmation will be governed by and construed in accordance with the laws of the State of Georgia applicable to contracts made and wholly performed within the State of Georgia. 2. The terms of the particular Rate Swap Transaction to which this Confirmation relates are as follows: Type of Transaction: Rate Swap Notional Amount: US$10,000,000.00 Trade Date: June 16, 1995 Effective Date: June 23, 1995 Termination Date: June 23, 2005 subject to adjustment in accordance with the Modified Following Business Day Convention PAGE 2 Fixed Amounts: ------------- Fixed Rate Payer: Aaron Rents, Inc. Fixed Rate Payer Payment Dates: The 23rd day of each March, June, September and December, beginning September 23, 1995 and terminating on the Termination Date, subject to adjustment in accordance with the Modified Following Business Day Convention. Fixed Rate: 6.3500% per annum Fixed Rate Day Count Fraction: A/360 Floating Amounts: ---------------- Floating Rate Payer: Trust Company Bank Floating Rate Payer Payment Dates: The 23rd day of each March, June, September and December, beginning September 23, 1995 and terminating on the Termination Date, subject to adjustment in accordance with the Modified Following Business Day Convention. Floating Rate Option: USD-LIBOR-BBA Floating Rate for initial Calculation Period: 6.06250% Designated Maturity: Three months Spread: Inapplicable Compounding: Inapplicable Floating Rate Day Count Fraction: Actual/360 Reset Dates: The first day of each Calculation Period Calculation Agent: Trust Company Bank Business Days: New York and London PAGE 3 3. Other Provisions: (i) "USD-LIBOR" means that the rate for a Reset Date will be the rate for deposits in Dollars for a period of the Designated Maturity which appears on the Telerate Page 3750 as of 11:00 a.m., London time, on two business days prior to the Reset Date. If such rate does not appear on the Telerate Page 3750, the rate for that Reset Date will be determined as if the parties had specified "LIBOR (Reference Banks)" as the applicable Floating Rate Option. (ii) "Telerate Page 3750" means the displays designated as "Page 3750" on the Telerate Service (or such other page as may replace Page 3750 on that service or such other service as may be nominated by the British Bankers' Association as the information vendor for the purpose of displaying British Banker's Association Interest Settlement Rate for Dollar deposits.) 4. Account Details: Payments to Fixed Rate Payer: [PLEASE ADVISE] Account No.: Depository: Address: Favor of: Payments to Floating Rate Payer: Trust Company Bank ABA# 061000104 Bond Wire Clearing, Center 095 Attn: Judy Keane-Dawes 5. Offices (a) The Office of Fixed Rate Payer for the Rate Swap Transactions is its Georgia office; and (b) The Office of Floating Rate Payer for the Rate Swap Transaction is its Georgia Office. PAGE 4 Please confirm that the foregoing correctly sets forth the terms of our agreement by executing this copy of this Confirmation and sending the same to us by overnight mail to SunTrust Capital Markets, 25 Park Place, 4th Floor, Atlanta, GA 30303 to the attention of Mark Brown or Mark Lutostansky. By signing below, you also acknowledge and agree that we have explained to you the risks involved in this Rate Swap Transaction, which risks include but are not limited to the following: . Marked Risk: the risk that the Rate Swap Transaction will decline in value with a change in, among other things, interest rates or the yield curve; and . Liquidity Risk: the risk that the Rate Swap Transaction cannot be closed out or disposed of quickly at or near its value. You further acknowledge and agree that you understand these risks and the Rate Swap Transaction as a whole, that you are capable of managing the risks associated with this Rate Swap Transaction, that the risks involved in this Rate Swap Transaction are consistent with your financial goals, policies and procedures, and risk tolerance, and that you have determined that this Rate Swap Transaction is appropriate for you. Very truly yours, TRUST COMPANY BANK By: /s/ Wadley Duckworth --------------------------- Name: Wadley Duckworth Title: By: /s/ Martha A. Suggs ---------------------------- Name: Martha A. Suggs Title: Assistant Vice President Accepted and Confirmed as of the Date First Written: AARON RENTS, INC. By: /s/ Gilbert L. Danielson --------------------------- Name: Gilbert L. Danielson Title: Vice President, Finance By: ---------------------------- Name: Title: EX-11 3 EANINGS PER SHARE EXHIBIT 11 COMPUTATION OF EARNINGS PER SHARE
Three Months Ended ------------------------------------- June 30 ------------------------------------- 1995 1994 ----------------- ------------------ (in thousands, except per share data) Primary: Net Income $ 3,315 $ 2,607 ------- ------- Weighted average number common shares outstanding 9,785 9,283 Add: Dilutive effect of outstanding options, as determined by the application of the treasury stock method using the average market price of the Company's common stock 252 320 ------- ------- Weighted average number of common and common equivalent shares 10,037 9,603 ------- ------- Primary earnings per share $ .33 $ .27 ------- ------- Fully diluted: Weighted average number of common and common equivalent shares 10,037 9,603 Add: Additional dilutive effect of outstanding options, as determined by the application of the treasury stock method using the quarter end market price of the Company's common stock 12 0 ------- ------- Weighted average number of common shares fully diluted 10,049 9,603 ------- ------- Fully diluted earnings per share $ .33* $ .27* ------- -------
*Not presented in Financial Statements since dilutive effect is less than 3%. EX-27 4 ARTICLE 5 FDS
5 1,000 3-MOS MAR-31-1996 APR-01-1995 JUN-30-1995 91 0 8,600 0 121,397 0 24,051 0 157,363 0 0 5,999 0 0 80,282 157,363 12,858 59,135 9,114 53,038 0 0 750 5,347 2,032 3,315 0 0 0 3,315 .33 .33 The allowance for doubtful accounts is netted against total accounts receivable in the Accounts Receivable balance. Rental merchandise has been classified as inventory for purposes of this schedule. Rental merchandise has been shown net of 52,494 accumulated depreciation. The financial statements are presented with an unclassified balance sheet. PP&E has been shown net of accumulated depreciation.