-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ld2kqRuWHbUjh500/bteLzugOMZZP94VrAmaLCWbuq6L1TKHk0Xm4qvGrU41rq5C fexdCc+FLAt9Q2/oPzExbw== 0000950144-98-012941.txt : 19981118 0000950144-98-012941.hdr.sgml : 19981118 ACCESSION NUMBER: 0000950144-98-012941 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980930 FILED AS OF DATE: 19981116 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: SEC FILE NUMBER: 001-13941 FILM NUMBER: 98751785 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 AARON RENTS INC 1 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 SEPTEMBER 30, 1998 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 E. 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 November 12, 1998 ------------------- ----------------- Common Stock, $.50 Par Value 17,090,391 Class A Common Stock, $.50 Par Value 3,836,506
2 PART I - FINANCIAL INFORMATION ITEM 1 - FINANCIAL STATEMENTS AARON RENTS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
(unaudited) September 30, December 31, 1998 1997 ------------- ------------ (in thousands) ASSETS: Cash $ 98 $ 96 Accounts Receivable 14,704 11,794 Rental Merchandise 278,406 246,498 Less: Accumulated Depreciation (82,124) (69,530) --------- --------- 196,282 176,968 Property, Plant and Equipment, Net 47,655 39,757 Prepaid Expenses and Other Assets 14,550 10,767 --------- --------- Total Assets $ 273,289 $ 239,382 ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY: Accounts Payable and Accrued Expenses $ 32,716 $ 31,071 Dividends Payable 379 Deferred Income Taxes Payable 9,216 6,687 Customer Deposits and Advance Payments 9,469 8,304 Bank Debt 49,879 75,904 Other Debt 2,073 582 --------- --------- Total Liabilities 103,353 122,927 Shareholders' Equity: Common Stock, Par Value $.50 Per Share; Authorized: 25,000,000 Shares; Shares Issued: 18,270,987 at September 30, 1998 9,135 8,085 and 16,170,987 at December 31, 1997 Common Stock, Class A, Par Value $.50 Per Share; Authorized: 25,000,000 Shares; Shares Issued: 5,361,761 2,681 2,681 Additional Paid in Capital 54,493 15,484 Retained Earnings 129,188 113,864 --------- --------- 195,497 140,114 Less: Treasury Shares at Cost, Common Stock, 1,198,596 Shares at September 30, 1998 and 1,058,041 Shares at December 31, 1997 (11,425) (9,523) Class A Common Stock, 1,525,255 Shares at September 30, 1998 and December 31, 1997 (14,136) (14,136) --------- --------- Total Shareholders' Equity 169,936 116,455 --------- --------- Total Liabilities and Shareholders' Equity $ 273,289 $ 239,382 ========= =========
See Notes to Consolidated Financial Statements 3 AARON RENTS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
Three Months Ended Nine Months Ended -------------------- -------------------- September 30, September 30, -------------------- -------------------- 1998 1997 1998 1997 -------------------- -------------------- (in thousands, except per share amounts) REVENUES: Rentals and Fees $ 73,662 $ 56,940 $215,640 $171,961 Retail Sales 15,761 15,068 47,278 44,491 Non-Retail Sales 4,190 2,625 13,397 9,305 Other 2,269 1,605 6,208 4,426 -------- -------- -------- -------- 95,882 76,238 282,523 230,183 -------- -------- -------- -------- COSTS AND EXPENSES: Retail Cost of Sales 11,245 10,662 33,470 32,190 Non-Retail Cost of Sales 3,919 2,491 12,482 8,732 Operating Expenses 48,825 36,796 142,165 110,932 Depreciation of Rental Merchandise 23,036 17,484 65,686 53,030 Interest 828 922 2,921 2,728 -------- -------- -------- -------- 87,853 68,355 256,724 207,612 -------- -------- -------- -------- EARNINGS BEFORE TAXES 8,029 7,883 25,799 22,571 INCOME TAXES 3,123 3,078 10,053 8,821 -------- -------- -------- -------- NET EARNINGS $ 4,906 $ 4,805 $ 15,746 $ 13,750 ======== ======== ======== ======== EARNINGS PER SHARE $ .23 $ .25 $ .78 $ .71 -------- -------- -------- -------- EARNINGS PER SHARE ASSUMING DILUTION $ .23 $ .25 $ .76 $ .70 -------- -------- -------- -------- CASH DIVIDENDS DECLARED PER SHARE Common Stock $ -- $ -- $ .02 $ .02 -------- -------- -------- -------- Class A Common Stock $ -- $ -- $ .02 $ .02 -------- -------- -------- -------- WEIGHTED AVERAGE SHARES OUTSTANDING 21,091 18,963 20,159 19,238 ======== ======== ======== ======== WEIGHTED AVERAGE SHARES OUTSTANDING ASSUMING DILUTION 21,508 19,548 20,619 19,659 ======== ======== ======== ========
See Notes to Consolidated Financial Statements 4 AARON RENTS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Nine Months Ended ----------------- September 30, ------------- 1998 1997 --------- --------- (in thousands) OPERATING ACTIVITIES Net Earnings $ 15,746 $ 13,750 Depreciation and Amortization 72,271 57,709 Deferred Income Taxes 2,529 1,843 Change in Accounts Payable and Accrued Expenses 1,533 638 Change in Accounts Receivable (2,910) (997) Other Changes, Net (2,011) 204 --------- --------- Cash Provided by Operating Activities 87,158 73,147 --------- --------- INVESTING ACTIVITIES Additions to Property, Plant and Equipment (25,152) (8,486) Book Value of Property Retired or Sold 11,127 6,016 Additions to Rental Equipment (129,432) (100,219) Book Value of Rental Equipment Sold 45,320 42,752 Contracts and Other Assets Acquired (1,841) (177) --------- --------- Cash Used by Investing Activities (99,978) (60,114) --------- --------- FINANCING ACTIVITIES Proceeds from Revolving Credit Agreement 122,158 72,202 Repayments on Revolving Credit Agreement (148,183) (76,487) Proceeds from Common Stock Offering 39,958 Increase in Other Debt 1,491 588 Dividends Paid (801) (761) Acquisition of Treasury Stock (2,454) (8,918) Issuance of Stock Under Stock Option Plan 653 357 --------- --------- Cash Provided (Used) by Financing Activities 12,822 (13,019) --------- --------- Increase in Cash 2 14 Cash at Beginning of Year 96 84 --------- --------- Cash at End of Period $ 98 $ 98 ========= =========
See Notes to Consolidated Financial Statements 5 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 subsidiary. All significant intercompany accounts and transactions have been eliminated. INTERIM FINANCIAL STATEMENTS: The Consolidated Balance Sheet as of September 30, 1998, and the Consolidated Statements of Earnings and Cash Flows for the nine months ended September 30, 1998 and 1997, 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 September 30, 1998 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 December 31, 1997. The results of operations for the period ended September 30, 1998 are not necessarily indicative of the operating results for the full year. PUBLIC OFFERING OF STOCK On April 28, 1998, the Company issued through a public offering 2,100,000 shares of Common Stock. The net proceeds to the Company after deducting underwriting discounts and offering expenses were $40.0 million. The net proceeds were used to reduce bank debt. SUBSEQUENT EVENT In October, 1998 the Company sold substantially all of the assets of its Convention Furnishings division. The effect on the Company's results of operations from this sale is not expected to be significant. 6 PART I - FINANCIAL INFORMATION ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED FINANCIAL CONDITION AND RESULTS OF OPERATIONS. Note: Except for historical information contained herein, the matters set forth in this Form 10-Q are forward-looking statements. The Company notes that the forward-looking statements set forth involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including the risks and uncertainties discussed in the Company's Prospectus dated April 28, 1998, filed with the Securities and Exchange Commission, under the caption "Risk Factors," which discussion is incorporated herein by this reference. RESULTS OF OPERATIONS: THE QUARTER ENDED SEPTEMBER 30, 1998, COMPARED TO THE QUARTER ENDED SEPTEMBER 30, 1997: Total revenues for the third quarter of 1998 increased $19.6 million (25.8%) to $95.9 million compared to $76.2 million in 1997 due primarily to a $16.7 million (29.4%) increase in rentals and fees revenues, plus a $2.3 million (12.8%) increase in sales. Of this increase in rentals and fees revenues, $12.8 million (65.9%) was attributable to the Aaron's Rental Purchase division. Rentals and fees from the Company's rent-to-rent operations increased $3.9 million (14.6%) during the same period. Revenues from retail sales increased $693,000 (4.6%) to $15.8 million in 1998, from $15.1 million for the same period last year. This increase was primarily due to increased sales of both new and rental return merchandise in the Aaron's Rental Purchase division and increased rental return sales in the Rent-to-Rent division. Non-retail sales, which primarily represent merchandise sold to Aaron's Rental Purchase franchisees, increased $1.6 million (59.6%) to $4.2 million compared to $2.6 million for the same period last year. The increased sales are due to the growth of the franchise operations and the addition of a fourth distribution center. Other revenues for the third quarter of 1998 increased $664,000 (41.4%) to $2.3 million compared to $1.6 million in 1997. This increase was primarily attributable to franchise fee and royalty income increasing $469,000 (33.8%) to $1.9 million compared to $1.4 million last year, reflecting a net increase of 35 franchised stores since the end of the third quarter of 1997 and increased operating revenues of maturing franchise stores. Cost of sales from retail sales increased $583,000 (5.5%) to $11.2 million compared to $10.7 million last year, and as a percentage of retail sales, increased to 71.3% from 70.8%. The slight increase in cost of sales as a percentage of sales is due to a greater percentage of the Company's sales coming from rental return sales in the Rent-to-Rent division which are at lower margins. Cost of sales from non-retail sales increased $1.4 million (57.3%) to $3.9 million from $2.5 million, and as a percentage of sales, decreased slightly to 93.5% from 94.9%. Operating expenses increased $12.0 million (32.7%) to $48.8 million from $36.8 million. As a percentage of total revenues, operating expenses were 50.9% in 1998 and 48.3% in 1997. Operating expenses increased as a percentage of total revenues between quarters primarily due to the Company's acquisitions of RentMart Rent-To-Own, Inc. in December 1997 and Blackhawk Convention Services. The RentMart stores are relatively immature and have lower revenues over which to spread expenses and Blackhawk's convention furnishings business has higher 7 operating expenses as a percentage of revenues than traditional rental purchase and rent-to-rent operations. Depreciation of rental merchandise increased $5.6 million (31.8%) to $23.0 million, from $17.5 million, and as a percentage of total rentals and fees, increased to 31.3% from 30.7%. The increase as a percentage of rentals and fees is primarily due to a greater percentage of the Company's rentals and fees coming from the Aaron's Rental Purchase division which depreciates its rental merchandise at a faster rate than the Rent-to-Rent division. Interest expense decreased $94,000 (10.2%) to $828,000 compared to $922,000. As a percentage of total revenues, interest expense was .8% in 1998 compared to 1.2% in 1997. The decrease in interest expense as a percentage of revenues was due to lower debt levels after the Company's April 1998 public stock offering. Income tax expense increased $45,000 (1.5%) to $3.1 million for 1998 compared to $3.1 million for the same period in 1997. The Company's effective tax rate was 38.9% for the quarter versus 39.0% for the same period in 1997. As a result, net earnings increased $101,000 (2.1%) to $4.9 million in the third quarter of 1998 compared to $4.8 million for the same period in 1997. As a percentage of total revenues, net earnings were 5.1% in the current quarter as compared to 6.3% for the same period last year. The weighted average number of shares outstanding during the third quarter of 1998 was 21,091,000 compared to 18,963,000 (21,508,000 versus 19,548,000 assuming dilution) for the same period last year. NINE MONTHS ENDED SEPTEMBER 30, 1998, COMPARED TO NINE MONTHS ENDED SEPTEMBER 30, 1997: Total revenues for the first nine months of 1998 increased $52.3 million (22.7%) to $282.5 million compared to $230.2 million in 1997 due primarily to a $43.7 million (25.4%) increase in rentals and fees revenues, plus a $6.9 million (12.8%) increase in sales. Of this increase in rentals and fees revenues, $34.3 million (78.5%) was attributable to the Aaron's Rental Purchase division. Rentals and fees from the Company's rent-to-rent operations increased $9.3 million (11.2%) during the same period. Revenues from retail sales increased $2.8 million (6.3%) to $47.3 million in 1998, from $44.5 million for the same period last year. This increase was primarily due to increased sales of both new and rental return merchandise in the Aaron's Rental Purchase and Rent-to-Rent divisions. Non-retail sales, which primarily represent merchandise sold to Aaron's Rental Purchase franchisees, increased $4.1 million (44.0%) to $13.4 million compared to $9.3 million for the same period last year. The increased sales are due to the growth of the franchise operations and the addition of a fourth distribution center. Other revenues for the first nine months of 1998 increased $1.8 million (40.3%) to $6.2 million compared to $4.4 million in 1997. This increase was primarily attributable to franchise fee and royalty income increasing $1.6 million (47.1%) to $5.1 million compared to $3.4 million last year, reflecting a net increase of 35 franchised stores since the end of the third quarter of 1997 and increased operating revenues of maturing franchise stores. 8 Cost of sales from retail sales increased $1.3 million (4.0%) to $33.5 million compared to $32.2 million last year, and as a percentage of retail sales, decreased to 70.8% from 72.4%. The decrease in cost of sales as a percentage of sales is due to improved margins in the Company's rent-to-rent operations and a greater percentage of the Company's sales coming from the Aaron's Rental Purchase division which are at higher margins. Cost of sales from non-retail sales increased $3.8 million (47.9%) to $12.5 million from $8.7 million, and as a percentage of sales, decreased to 93.2% from 93.8%. The decrease in cost of sales as a percentage of sales is due to slightly higher margins on sales through the Company's distribution centers. Operating expenses increased $31.2 million (28.2%) to $142.2 million from $110.9 million. As a percentage of total revenues, operating expenses were 50.3% in 1998 and 48.2% in 1997. Operating expenses increased as a percentage of total revenues between the periods primarily due to the Company's acquisitions of RentMart Rent-To-Own, Inc. in December 1997 and Blackhawk Convention Services. The RentMart stores are relatively immature and have lower revenues over which to spread expenses and Blackhawk's convention furnishings business has higher operating expenses as a percentage of revenues than traditional rental purchase and rent-to-rent operations. Depreciation of rental merchandise increased $12.7 million (23.9%) to $65.7 million, from $53.0 million, and as a percentage of total rentals and fees, decreased to 30.5% from 30.8%. The decrease as a percentage of revenues is primarily due to decreased depreciation in relation to revenues in both the Company's Aaron's Rental Purchase and Rent-to-Rent divisions. Interest expense increased $193,000 (7.1%) to $2.9 million compared to $2.7 million. As a percentage of total revenues, interest expense was 1.0% in 1998 compared to 1.2% in 1997. The decrease in interest expense as a percentage of revenues was due to lower debt levels after the Company's April 1998 public stock offering. Income tax expense increased $1.2 million (14.0%) to $10.1 million for 1998 compared to $8.8 million for the same period in 1997. The Company's effective tax rate was 39.0% for first nine months of 1998 versus 39.1% for the same period in 1997. As a result, net earnings increased $2.0 million (14.5%) to $15.7 million in the first nine months of 1998 compared to $13.8 million for the same period in 1997. As a percentage of total revenues, net earnings were 5.6% for the first nine months of 1998 versus 6.0% for the same period in 1997. The weighted average number of shares outstanding during the first nine months of 1998 was 20,159,000 compared to 19,238,000 (20,619,000 versus 19,659,000 assuming dilution) for the same period last year. LIQUIDITY AND CAPITAL RESOURCES: During the first quarter of 1998, the Company paid a semi-annual dividend that was declared in December 1997 of $.02 per share on both Common Stock and Class A Common Stock, respectively. On May 5, 1998, the Company declared a semi-annual dividend which was paid on July 7, 1998 of $.02 per share on both Common Stock and Class A Common Stock, respectively. 9 On April 28, 1998, the Company issued through a public offering 2,100,000 shares of Common Stock. The net proceeds to the Company after deducting underwriting discounts and offering expenses were $40.0 million. The net proceeds were used to reduce bank debt. Cash flow from operations for the nine months ended September 30, 1998 and 1997 was $87.2 million and $73.1 million, respectively. Such cash flows include profits on the sale of rental return merchandise. The Company's primary capital requirements consist of acquiring rental merchandise for both rent-to-rent and Company-operated Aaron's Rental Purchase stores. As the Company continues to grow, the need for additional rental merchandise will continue to be the Company's major capital requirement. These capital requirements historically have been financed through bank credit, cash flow from operations, trade credit, proceeds from the sale of rental return merchandise, and proceeds from public stock offerings. The Company has financed its growth through a revolving credit agreement with several banks, trade credit and internally generated funds. The revolving credit agreement provides for unsecured borrowings up to $90.0 million which includes a $6.0 million credit line to fund daily working capital requirements. At September 30, 1998, an aggregate of $49.9 million was outstanding under this facility, bearing interest at an average rate of 6.33%. The Company uses interest rate swap agreements as part of its overall long-term financing program. At September 30, 1998, the Company had swap agreements with notional principal amounts of $40.0 million which effectively fixed the interest rates on an equal amount of borrowings under the Company's revolving credit agreement at 7.18%. The Company believes that the expected cash flows from operations, proceeds from the sale of rental return merchandise, bank borrowings and vendor credit, together with the proceeds from the stock offering on April 28, 1998, will be sufficient to fund the Company's capital and liquidity needs for at least the next 24 months. YEAR 2000 The Year 2000 Issue is the result of computer programs being written using two digits rather than four to define the applicable year. Any of the Company's computer programs or hardware that have date-sensitive software or embedded chips may recognize a date using "00" as the year 1900 rather than the year 2000. This could result in a system failure or miscalculations causing disruptions of operations, including, among other things, a temporary inability to process transactions, generate invoices, or engage in similar normal business activities. The Company is continuing its assessments of the impact of the Year 2000 across its business and operations, including its customer and vendor base. The Company has substantially completed its identification of information technology systems ("IT systems") that are not Year 2000 compliant and is in the process of implementing a comprehensive plan to make its IT systems and non-information technology systems ("non-IT systems"), including embedded electronic circuits in equipment and hardware, products, telecommunication, building security and manufacturing equipment, Year 2000 compliant. The Company's plan is to resolve the Year 2000 Issue involves the following four phases: (1) assessment, (2) remediation, (3) testing, and (4) implementation. The Company is simultaneously working on all four phases and anticipates that it will substantially complete phase (1) by the end of the first quarter 1999, (2) and (3) by the end of the second quarter 1999, and (4) by the end of the third quarter 1999. The Company is in the process of querying its significant suppliers and subcontractors (external agents). To date, the Company is not aware of any external agents with a Year 2000 issue that would materially impact the Company's results of operations, liquidity, or capital resources. However, the Company has no means of ensuring that external agents will be Year 2000 compliant. The inability of external agents to complete their Year 2000 resolution process in a timely fashion could materially impact the Company. The effect of non-compliance by external agents is not determinable. The Company's significant IT systems, including financial, accounting, store operating and point-of-sale software have recently been or are in the process of being updated. The upgrading and rewriting of the Company's IT systems is being done to gain further strategic advantages over competitors and is not the result of any anticipated Year 2000 issues. In addition, as part of the Company's continuing process to update IT and non-IT systems, management has required vendor-purchased and internally developed systems be Year 2000 compliant. Therefore, management expects cost of the Year 2000 project to be less than $100,000. The Company has contingency plans for certain critical applications and is working on such plans for others. These contingency plans involve, among other actions, manual workarounds, and backup vendors. Management of the Company believes it has an effective program in place to resolve the Year 2000 issue in a timely manner. As noted above, the Company has not yet completed all necessary phases of the Year 2000 program. In the event that the Company does not complete any additional phases, the Company may be unable to take customer orders, manufacture and ship products, invoice customers or collect payments. In addition, disruptions in the economy generally resulting from Year 2000 issues could also materially adversely affect the Company. The Company could be subject to litigation for computer systems product failure, for example, equipment shutdown or failure to properly date business records. The amount of potential liability and lost revenue cannot be reasonably estimated at this time. See "Special Note Regarding Forward-Looking Information." 10 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 --------- ---------------------- 27 Financial Data Schedule
(b) No reports on Form 8-K were filed by the Registrant during the three months ended September 30, 1998 11 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 - November 13, 1998 /s/ Gilbert L. Danielson ----------------- ----------------------------------- Gilbert L. Danielson Executive Vice President Chief Financial Officer Date - November 13, 1998 /s/ Robert P. Sinclair, Jr. ----------------- ----------------------------------- Robert P. Sinclair, Jr. Corporate Controller EX-27 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS OF AARON RENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 9-MOS DEC-31-1998 JAN-01-1998 SEP-30-1998 98 0 14,704 0 196,282 0 47,655 0 273,289 0 0 0 0 11,816 158,120 273,289 60,675 282,523 45,952 253,803 0 0 2,921 25,799 10,053 15,746 0 0 0 15,746 .78 .76 THE ALLOWANCE OF 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 82,124 ACCUMULATED DEPRECIATION. THE FINANCIAL STATEMENTS ARE PRESENTED WITH AN UNCLASSIFIED BALANCE SHEET. PP&E HAS BEEN SHOWN NET OF ACCUMULATED DEPRECIATION.
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