-----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, BqB0xTWpMwpY8kiBckJGXGwMTTAsJNmTywdCfurOu1M1ZX6OrAQTKKx47lavDoW8 39XGkJUOxHuNsATgtwhW4Q== 0001275287-05-000693.txt : 20050224 0001275287-05-000693.hdr.sgml : 20050224 20050223202457 ACCESSION NUMBER: 0001275287-05-000693 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050223 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050224 DATE AS OF CHANGE: 20050223 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: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13941 FILM NUMBER: 05635632 BUSINESS ADDRESS: STREET 1: 309 E. PACES FERRY ROAD, N.E. STREET 2: (NONE) CITY: ATLANTA STATE: GA ZIP: 30305-2377 BUSINESS PHONE: 404-231-0011 MAIL ADDRESS: STREET 1: 309 E. PACES FERRY ROAD, N.E. STREET 2: (NONE) CITY: ATLANTA STATE: GA ZIP: 30305-2377 8-K 1 ar2115.txt ================================================================================ 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): February 23, 2005 ---------- AARON RENTS, INC. ------------------------------------------------------ (Exact name of Registrant as Specified in its Charter) Georgia 1-13941 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) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ================================================================================ ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On February 23, 2005, Aaron Rents, Inc. (the "Company") issued a press release to announce its financial results for the fourth quarter of 2004 and fiscal year 2004. A copy of the press release is attached as Exhibit 99.1. The information in this Report, including the Exhibit attached hereto, is furnished solely pursuant to Item 2.02 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. ITEM 9.01. FINANCIAL STATEMENTS 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 February 23, 2005, announcing the Company's financial results for the fourth quarter of 2004 (furnished pursuant to Item 2.02 of 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, Date: February 23, 2005 Chief Financial Officer EX-99.1 2 ar2115ex991.txt Exhibit 99.1 AARON RENTS, INC. REPORTS REVENUES FOR FOURTH QUARTER; SAME STORE REVENUES UP 8.0%; EARNINGS UP 34% FOR QUARTER; 44% FOR YEAR ATLANTA, Feb. 23 /PRNewswire-FirstCall/ -- 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 and home appliances and accessories, today announced results for the fourth quarter and full year of 2004. For the three months ended December 31, revenues increased 16% to $242.1 million compared to $209.4 million for the fourth quarter of 2003. Net earnings increased 34% to $13.8 million versus $10.3 million for the same period a year ago. Diluted earnings per share were $.27 for the quarter compared to $.20 per share for the comparable period last year. For the year, revenues increased 23% to $946.5 million compared to $766.8 million for 2003. Net earnings for 2004 were $52.6 million versus $36.4 million for 2003, a 44% increase. Diluted earnings per share were $1.04 for 2004 compared to $.73 in 2003. "We are obviously pleased with these results," said R. Charles Loudermilk, Sr., Chairman and Chief Executive Officer of Aaron Rents. "This is the best year in the Company's history, now in its 50th year. We plan to continue to aggressively expand our Aaron's Sales & Lease Ownership business in 2005." For the fourth quarter the Aaron's Sales & Lease Ownership division increased its revenues 17% to $214.0 million compared to $183.0 million last year. For the twelve months, the division's revenues were $831.1 million, a 27% increase over the $656.5 million recorded for 2003. Same store revenues (revenues earned in Company-operated stores open for the entirety of both periods) in the Aaron's Sales & Lease Ownership division increased 8.0% during the fourth quarter of 2004 compared to the fourth quarter of 2003. Same store revenues for Aaron's Sales & Lease Ownership stores open over two years at the end of December 2004 also increased 4.9% between those quarters. Non-retail sales, which are primarily sales of rental merchandise to franchisees, increased to $42.2 million for the fourth quarter from $38.4 million for the quarter a year ago and to $160.8 million for the year compared to $120.4 million for 2003. Royalty income from franchisees, which is included in the Company's other revenues, increased to $4.9 million for the fourth quarter of 2004 from $3.5 million for the quarter a year ago, and to $17.8 million for the year compared to $14.0 million for last year. The increases in non-retail sales and royalty income are attributable to an increase in revenues of the Company's franchisees, who collectively had revenues of $97.2 million during the fourth quarter and $358.7 million for fiscal 2004, 36% and 28% increases from the comparable prior year periods, respectively. Revenues of franchisees, however, are not revenues of Aaron Rents, Inc. Included in the operating results for the fourth quarter 2004 was an approximate $750,000 net credit, or $.01 per diluted share, due to a reduction in the Company's accrual for future personal property tax liabilities offset by additional expense relating to advertising. Also included in other revenues for 2004 is a pre-tax gain of $5.5 million, or $.07 per diluted share, realized in the second quarter from the previously announced disposition of the Company's Rainbow Rentals, Inc. stock when Rainbow Rentals merged with Rent-A-Center, Inc. in May, 2004. During the fourth quarter the Aaron's Sales & Lease Ownership division opened 25 new Company-operated stores and 24 new franchised stores. In addition, during the quarter the Company acquired nine stores from one of its franchisees, acquired two stores from an independent rental operator, and acquired the accounts from three other third party stores. For 2004, a net of 186 sales and lease ownership stores were added, an over 23% increase for the year in store count, including the opening of 68 new Company-operated stores and 79 new franchised stores. During the year the Company awarded area development agreements to open 160 additional franchised stores. At the end of December there were 301 franchise stores awarded that are expected to open over the next several years. At December 31 the Aaron's Sales and Lease Ownership division operated 616 Company-operated stores and its franchisees operated 357 stores. In addition, the Company had 58 rent-to-rent stores. "Our guidance for the first quarter of 2005 is to expect revenues in excess of $270 million and diluted earnings per share in the range of $.29 to $.32," Mr. Loudermilk continued. "For the entire 2005 year we continue to expect Company revenues in excess of $1.1 billion and diluted earnings per share in the range of $1.13 to $1.20. We plan to increase our store count between 15% and 20% per year for the next several years." Aaron Rents will hold a conference call to discuss its quarterly financial results on Thursday, February 24, 2005, at 10:30 am Eastern Time. The public is invited to listen in to the conference call by webcast accessible through the Company's 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 1,040 Company- operated and franchised stores in 45 states, Canada, 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. "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 materially from those contained in the forward-looking statements. These risks and uncertainties include factors such as changes in general economic conditions, competition, pricing, customer demand and other issues, and the risks and uncertainties discussed under "Certain Factors Affecting Forward Looking Statements" in the Company's Annual Report on Form 10-K for fiscal 2003, which discussion is incorporated herein by this reference. Statements in this release that are "forward-looking" include without limitation Aaron Rents' projected revenues, earnings, and store openings. Aaron Rents, Inc. and Subsidiaries Consolidated Statements of Earnings (In thousands, except per share amounts)
Three Months Ended Twelve Months Ended December 31, December 31, ----------------------- ----------------------- 2004 2003 2004 2003 ---------- ---------- ---------- ---------- (Unaudited) (Unaudited) Revenues: Rentals and Fees $ 177,975 $ 149,912 $ 694,293 $ 553,773 Retail Sales 13,559 14,468 56,259 68,786 Non-Retail Sales 42,172 38,429 160,774 120,355 Other 8,347 6,581 35,154 23,883 Total 242,053 209,390 946,480 766,797 Costs and Expenses: Retail Cost of Sales 9,222 10,767 39,380 50,913 Non-Retail Cost of Sales 38,939 35,664 149,207 111,714 Operating Expenses 106,903 92,277 414,518 344,884 Depreciation of Rental Merchandise 64,079 53,125 253,456 195,661 Interest 1,589 1,260 5,413 5,782 Total 220,732 193,093 861,974 708,954 Earnings Before Taxes 21,321 16,297 84,506 57,843 Income Taxes 7,554 6,031 31,890 21,417 Net Earnings $ 13,767 $ 10,266 $ 52,616 $ 36,426 Earnings Per Share $ .28 $ .20 $ 1.06 $ .74 Earnings Per Share Assuming Dilution $ .27 $ .20 $ 1.04 $ .73 Weighted Average Shares Outstanding (1) 49,738 49,140 49,602 48,964 Weighted Average Shares Outstanding Assuming Dilution (1) 50,798 50,109 50,575 49,784
(1) Shares outstanding adjusted for a 3-for-2 partial stock split effective August 16, 2004. Selected Balance Sheet Data (In Thousands) (Unaudited) December 31, December 31, 2004 2003 ------------ ------------ Cash $ 5,865 $ 4,687 Accounts Receivable 32,736 30,878 Rental Merchandise, Net 425,567 343,013 Property, Plant and Equipment, Net 109,937 99,584 Other Assets, Net 123,417 81,722 Total Assets 697,522 559,884 Bank Debt 45,528 13,870 Senior Notes 50,000 50,000 Total Liabilities 322,344 239,698 Shareholders' Equity $ 375,178 $ 320,186 SOURCE Aaron Rents, Inc. -0- 02/23/2005 /CONTACT: Gilbert L. Danielson, Executive Vice President, Chief Financial Officer of Aaron Rents, Inc., +1-404-231-0011, ext. 3334/ /Web site: http://www.aaronrents.com / _ -----END PRIVACY-ENHANCED MESSAGE-----