-----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, UDX4Li9IcfSG1a8zH3MtVxGfsaCPXKCZKw/uQz+93xoe+cQhtQfM/9wk+/5062qT p/NytdtWP50D9Z7imzT8Tw== 0001047469-03-014993.txt : 20030429 0001047469-03-014993.hdr.sgml : 20030429 20030428215128 ACCESSION NUMBER: 0001047469-03-014993 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030428 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030429 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: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13941 FILM NUMBER: 03667729 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 8-K 1 a2109658z8-k.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ---------------------- FORM 8-K ---------------------- CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of Earliest Event Reported): April 28, 2003 ---------------------- AARON RENTS, INC. ------------------------------------------------------ (Exact name of Registrant as Specified in its Charter) Georgia 0-12385 58-0687630 - -------------------------------- ------------------ -------------------- (State or other Jurisdiction of (Commission File (IRS Employer Incorporation or Organization) Number) Identification No.) 309 E. Paces Ferry Road, N.E. Atlanta, Georgia 30305-2377 ------------------------------------------ -------------------- (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code: (404) 231-0011 Not Applicable -------------------------------------------------------------------- (Former name or former address, if changed since last report) ITEM 7. FINANCIAL STATEMENTS, PRO FORMA INFORMATION AND EXHIBITS (a) Financial Statements of Businesses Acquired: None. (b) Pro Forma Financial Information: None. (c) Exhibits:
EXHIBIT NO. DESCRIPTION - ----------- ----------- 99.1 Aaron Rents, Inc. press release dated April 28, 2003, announcing the Company's financial results for the first quarter of 2003 (furnished pursuant to Items 9 and 12 of Form 8-K).
ITEM 9. REGULATION FD DISCLOSURE Pursuant to Exchange Act Release 47583, Aaron Rents, Inc. (the "Company") is furnishing the following information and Exhibit pursuant to Items 9 and 12 of Form 8-K. On April 28, 2003, the Company issued a press release to announce its financial results for the first quarter of 2003. A copy of the press release is attached as Exhibit 99.1. The press release presents the Company's systemwide revenues, along with the most directly comparable financial measure calculated and presented in accordance with GAAP, which the Company determined to be Company revenues, and a reconciliation of Company revenues to systemwide revenues. Systemwide revenues is calculated by adding Company revenues as calculated and presented in accordance with GAAP to the revenues of the Company's franchisees, and subtracting the Company's royalty revenues from the resulting total. [The Company calculates franchisee revenues by dividing a royalty rate of 5% into the Company's royalty revenues.] Franchisee revenues however are not revenues of Aaron Rents, Inc. Management believes that presentation of non-GAAP financial measures such as systemwide revenues is useful because it allows investors and management to evaluate and compare the overall growth and penetration of the Aaron Rents brand in a more meaningful manner than relying exclusively on GAAP financial measures. Non-GAAP financial measures however should not be considered in isolation or as an alternative to financial measures calculated and presented in accordance with GAAP. Because systemwide revenues are not a measurement determined in accordance with GAAP and is thus susceptible to varying calculations, systemwide revenues as used in the press release may not be comparable to other similarly titled measures used by other companies. As used herein, "GAAP" refers to accounting principles generally accepted in the United States. The information in this Report, including the Exhibit attached hereto, is furnished solely pursuant to Items 9 and 12 of this Form 8-K. Consequently, it is not deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section. It may only be incorporated by reference in another filing under the Exchange Act or Securities Act of 1933 if such subsequent filing specifically references this Form 8-K. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. AARON RENTS, INC. By: /s/ Gilbert L. Danielson ---------------------------- Gilbert L. Danielson Executive Vice President and Date: April 28, 2003 Chief Financial Officer EX-99.1 3 a2109658zex-99_1.txt EXHIBIT 99.1 EXHIBIT 99.1 CONTACT: GILBERT L. DANIELSON Executive Vice President Chief Financial Officer AARON RENTS, INC. REPORTS RECORD FIRST QUARTER REVENUES AND EARNINGS ATLANTA, April 28, 2003 - Aaron Rents, Inc. (NYSE: RNT), the nation's leader in the sales and lease ownership, specialty retailing and rental of residential and office furniture, consumer electronics, home appliances and accessories, today announced record revenues and earnings for the first quarter of 2003. The Company's results were driven by its fast-growing Aaron's Sales & Lease Ownership division, which increased revenues 31% during the quarter including a 14.1% increase in same store revenues. "Our Aaron's Sales & Lease Ownership division continues to perform very well," said R. Charles Loudermilk, Sr., Chairman and Chief Executive Officer of Aaron Rents, Inc. "The first quarter results were better than anticipated and we look forward to continuing growth the remainder of the year." For the three months ended March 31, 2003 revenues advanced 22% to a record $191.3 million compared to $156.7 million for the first quarter of 2002. Net earnings for the first quarter increased 48% to a record $8.7 million, or $.40 per share on a diluted basis, compared to $5.9 million, or $.29 per diluted share, for the same period last year. Systemwide revenues for the Company, which includes gross revenues of franchised stores, advanced 21% to $259.5 million for the quarter versus $215.3 million a year ago. Systemwide revenues is calculated by adding Company revenues determined in accordance with GAAP of $191.3 million to the revenues of the Company's franchisees of $71.8 million, and subtracting the Company's royalty revenues of $3.6 million. Franchisee revenues however are not revenues of Aaron Rents, Inc. Same store revenues (revenues earned in stores operated for the entirety of both periods) in the Aaron's Sales & Lease Ownership division increased 14.1% during the first quarter of 2003 compared to first quarter of 2002. Same store revenues increased 6.6% for stores open over two years in both the first quarter of 2003 and 2002. The Aaron's Sales & Lease Ownership division increased its store count during the first quarter by 21 stores, 13 Company-operated stores and eight franchised stores, bringing the total of stores open at March 31 to 665. At the end of March the Company also had 70 rent-to-rent stores open. During the first quarter the Company's Sight & Sound stores negatively affected earnings by approximately $.06 per diluted share. Subsequent to the end of the quarter, the Company converted six of the 25 Sight & Sound stores to traditional Aaron's Sales & Lease Ownership stores. In addition, seven other Sight & Sound stores will be closed with the store's lease volume transferred to nearby existing Aaron's stores. With the reduction in stores open, the Company expects the negative financial impact from the Sight & Sound stores to diminish in future quarters. "Our outlook for 2003 is recording revenues during the year in the range from $730 million to $750 million with systemwide revenues exceeding $1 billion," Mr. Loudermilk continued. "We expect diluted earnings per share in the second quarter to be in the range of $.38 to $.40 per share, and continue to expect to earn between $1.55 and $1.65 per diluted share for the full year of 2003." Systemwide revenues is calculated by adding Company revenues determined in accordance with GAAP of $730 million to over $750 million to the revenues of the Company's franchisees of $263 million to over $284 million, and subtracting the Company's royalty revenues of $13.2 million to over $14.2 million. Franchisee revenues however are not revenues of Aaron Rents, Inc. Aaron Rents will hold a conference call to discuss its quarterly financial results on Tuesday, April 29, 2003, at 10:00 am Eastern time. The public is invited to listen in to the conference call by webcast accessible through our website, www.aaronrents.com, in the "Investor Relations" section. The webcast will be archived for playback at that same site. Aaron Rents, Inc., based in Atlanta, currently has more than 740 Company-operated and franchised stores across the United 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 10 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 1995: 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 "CERTAIN FACTORS AFFECTING FORWARD LOOKING STATEMENTS" IN THE COMPANY'S ANNUAL REPORT ON FORM 10-K FOR FISCAL 2002, 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, 2003 2002 ---- ---- Revenues: Rentals and Fees $131,037 $112,502 Retail Sales 23,038 17,015 Non-Retail Sales 31,557 22,463 Other 5,628 4,683 Total 191,260 156,663 Costs and Expenses: Retail Cost of Sales 16,855 12,378 Non-Retail Cost of Sales 29,402 20,828 Operating Expenses 83,119 73,134 Depreciation of Rental Merchandise 46,389 39,700 Interest 1,588 1,166 Total 177,353 147,206 Earnings Before Taxes 13,907 9,457 Income Taxes 5,159 3,536 Net Earnings $8,748 $5,921 Earnings Per Share $.40 $.30 Earnings Per Share Assuming Dilution $.40 $.29 Weighted Average Shares Outstanding 21,685 19,912 Weighted Average Shares Outstanding Assuming Dilution 21,942 20,192
SELECTED BALANCE SHEET DATA (IN THOUSANDS)
(Unaudited) March 31, December 31, 2003 2002 ---- ---- Cash $ 4,777 $ 96 Accounts Receivable 26,811 26,973 Rental Merchandise, Net 318,870 317,287 Property, Plant and Equipment, Net 88,214 87,094 Total Assets 491,753 483,648 Bank Debt 7,325 Senior Notes 50,000 50,000 Total Liabilities 202,011 203,103 Shareholders' Equity 289,742 280,545
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