-----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, AIDFdZHzKlfmNCBzcoIqnPL9CujX11io02VhrLGkBeN7soAEdxxs0gbaQpSvdDMz QD3H7G7Yy0eOA6qb6ZgiqA== 0001275287-06-002212.txt : 20060427 0001275287-06-002212.hdr.sgml : 20060427 20060426185313 ACCESSION NUMBER: 0001275287-06-002212 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20060426 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060427 DATE AS OF CHANGE: 20060426 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: 06782590 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 ar5555.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 26, 2006 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 April 26, 2006, Aaron Rents, Inc. issued a press release to announce its financial results for the first quarter 2006. A copy of the press release is attached as Exhibit 99.1. ITEM 7.01. REGULATION FD DISCLOSURE Also, on April 26, 2006, Aaron Rents, Inc. announced a proposed public offering of shares of its common stock. A copy of the press release is attached as Exhibit 99.2. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS (a) Financial Statements of Businesses Acquired: None. (b) Pro Forma Financial Information: None. (d) Exhibits: EXHIBIT NO. DESCRIPTION - ------------ ------------------------------------------------------------- 99.1 Aaron Rents, Inc. press release dated April 26, 2006, announcing the Company's financial results for the first quarter 2006 (furnished pursuant to Item 2.02 of Form 8-K). 99.2 Aaron Rents, Inc. press release dated April 26, 2006, announcing a proposed public offering of shares of the Company's common stock(furnished pursuant to Item 7.01 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: April 26, 2006 Chief Financial Officer EX-99.1 2 ar5555ex991.txt EXHIBIT 99.1 Exhibit 99.1 AARON RENTS, INC. REPORTS RECORD FIRST QUARTER REVENUES UP 24%; SAME STORE REVENUES UP 10.7% ATLANTA, April 26 /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, home appliances and accessories, today announced record revenues and earnings for the three months ended March 31, 2006. For the first quarter of 2006, revenues increased 24% to $347.3 million compared to $279.3 million for the same quarter a year ago. Net earnings increased 17% to $21.6 million versus $18.4 million last year. Diluted earnings per share were $.42 compared to $.36 per diluted share in the first quarter of 2005. "We are extremely pleased with these results and feel good about our prospects for the remainder of the 2006 year," said R. Charles Loudermilk, Sr., Chairman and Chief Executive Officer of Aaron Rents. "Our management team has consistently performed at a level that has delivered superior results to our shareholders, and this quarter was no exception." For the first quarter, the Aaron's Sales & Lease Ownership division increased its revenues 26% to $314.3 million compared to $248.7 million last year. 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 10.7% during the first quarter of 2006 compared to the first quarter of 2005. Same store revenues also increased 7.0% for Aaron's Sales & Lease Ownership stores open over two years at the end of March 2006. The Aaron's Corporate Furnishings division increased revenues 7% during the quarter to $32.3 million compared to $30.2 million recorded in the first quarter a year ago. Consolidated rentals and fees increased 22% and franchise royalties and fees increased 14% during the first quarter of 2006 compared to the same period a year ago. Non-retail sales, which are primarily sales of merchandise to Aaron's Sales & Lease Ownership franchisees, increased 40% for the quarter compared to the first quarter of last year. The increases in the Company's franchise revenues and the shipments of non-retail sales are the result of an increase in revenues of the Company's franchisees, who collectively had revenues of $127.4 million during the first quarter of 2006, an 18% increase over the comparable prior year period. Revenues of franchisees, however, are not revenues of Aaron Rents, Inc. Included in first quarter results was a $950,000 pre-tax expense, or approximately $.01 per diluted share, resulting from the Company's adoption on January 1, 2006 of accounting for stock options as compensation expense under the guidelines of Statement of Financial Accounting Standards No. 123R. During the quarter the Aaron's Sales & Lease Ownership division opened 13 new Company-operated stores and 11 new franchised stores. In addition, the Company acquired three franchised stores and the accounts from two other third party stores were purchased and merged into existing stores. In addition, area development agreements were awarded to open five additional franchised stores. At the end of March there were 250 franchised stores awarded that are expected to open over the next several years. At March 31, 2006, the Aaron's Sales & Lease Ownership division accounted for 755 Company-operated stores, 400 franchised stores, and nine RIMCO stores. The Company also had 59 corporate furnishings stores. "Our guidance for the second quarter of 2006 is to expect revenues in excess of $310 million and diluted earnings per share, prior to the proposed stock offering announced separately today, in the range of $.34 to $.36," Mr. Loudermilk continued. "For the entire 2006 year we continue to expect Company revenues in excess of $1.3 billion (excluding revenues of franchisees) and diluted earnings per share, again before the proposed issuance of additional shares, in the range of $1.45 to $1.55. We plan to increase our store count approximately 15% per year over the next several years." Aaron Rents will hold a conference call to discuss its quarterly financial results on Thursday, April 27, 2006, 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 1,225 Company-operated and franchised stores in 46 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 12 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 "Risk Factors" in the Company's Annual Report on Form 10-K for fiscal 2005, 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 for future periods. Aaron Rents, Inc. and Subsidiaries Consolidated Statements of Earnings (In thousands, except per share amounts) (Unaudited) Three Months Ended March 31, --------------------------- 2006 2005 ------------ ------------ Revenues: Rentals and Fees $ 254,246 $ 209,145 Retail Sales 19,170 16,043 Non-Retail Sales 64,027 45,571 Franchise Royalties and Fees 8,223 7,191 Other 1,621 1,398 Total 347,287 279,348 Costs and Expenses: Retail Cost of Sales 12,406 10,736 Non-Retail Cost of Sales 59,791 42,633 Operating Expenses 143,956 119,631 Depreciation of Rental Merchandise 93,281 75,130 Interest 3,222 1,600 Total 312,656 249,730 Earnings Before Taxes 34,631 29,618 Income Taxes 13,070 11,196 Net Earnings $ 21,561 $ 18,422 Earnings Per Share $ .43 $ .37 Earnings Per Share Assuming Dilution $ .42 $ .36 Weighted Average Shares Outstanding 50,185 49,767 Weighted Average Shares Outstanding Assuming Dilution 51,085 50,747 Selected Balance Sheet Data (In thousands) (Unaudited) March 31, December 31, 2006 2005 ------------ ------------ Cash $ 6,179 $ 6,973 Accounts Receivable 43,563 42,812 Rental Merchandise, Net 569,140 550,932 Property, Plant and Equipment, Net 134,367 133,759 Other Assets, Net 129,381 124,039 Total Assets 882,630 858,515 Bank Debt 81,037 91,336 Senior Notes 100,000 100,000 Total Liabilities 420,371 424,044 Shareholders' Equity $ 462,259 $ 434,471 SOURCE Aaron Rents, Inc. -0- 04/26/2006 /CONTACT: Gilbert L. Danielson, Executive Vice President, Chief Financial Officer of Aaron Rents, Inc., +1-678-402-3314/ /Web site: http://www.aaronrents.com/ EX-99.2 3 ar5555ex992.txt EXHIBIT 99.2 Exhibit 99.2 AARON RENTS, INC. ANNOUNCES PROPOSED PUBLIC STOCK OFFERING ATLANTA, April 26 /PRNewswire-FirstCall/ -- Aaron Rents, Inc. (NYSE: RNT) announced today that it intends to file a registration statement for a proposed underwritten offering of 4,000,000 shares of its common stock (excluding shares subject to the underwriters' over-allotment option) in the next several weeks. Of the shares being offered, it is anticipated that 3,000,000 shares will be offered by Aaron Rents and 1,000,000 shares will be offered by Mr. R. Charles Loudermilk, Sr., the Company's Chairman, Chief Executive Officer and founder, as a selling shareholder. Mr. Loudermilk, Sr. currently owns approximately 2.6 million shares of Common Stock and 5.3 million shares of Class A Common Stock. It is anticipated that the net proceeds to Aaron Rents from the proposed offering will be used for the repayment of outstanding borrowings under its credit facility and for general corporate purposes, including working capital needs. This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities of Aaron Rents. The offering will be made only by means of a prospectus to be filed by Aaron Rents with the Securities and Exchange Commission. "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 "Risk Factors" in the Company's Annual Report on Form 10-K for fiscal 2005, which discussion is incorporated herein by this reference. Statements in this release that are "forward-looking" include statements regarding Aaron Rents' proposed public offering. SOURCE Aaron Rents, Inc. -0- 04/26/2006 /CONTACT: Gilbert L. Danielson, Executive Vice President, Chief Financial Officer of Aaron Rents, Inc., +1-678-402-3314/ /Web site: http://www.aaronrents.com/ -----END PRIVACY-ENHANCED MESSAGE-----