Aaron Rents, Inc. Reports Record Revenues and Earnings

Furniture World Magazine

Aaron Rents, Inc. (NYSE: RNT), one of the nation's leading furniture rental and sales companies, announced record revenues and earnings for both the fourth quarter and year 1998. This marked the Company's seventh consecutive year of record growth in revenues and earnings. For the three months ended December 31, 1998, revenues advanced 21% to a record $97.1 million compared to $80.6 million for the corresponding 1997 period. Net earnings gained 24% to $5.7 million versus $4.6 million. Earnings per share rose to $.28 ($.27 assuming dilution) compared to $.25 ($.24 assuming dilution) for the fourth quarter of 1997. Revenues for the year ended December 31, 1998, increased 22% to $379.7 million compared to $310.8 million for 1997. Earnings rose 17% to a record $21.5 million versus $18.4 million. Earnings per share reached $1.06 ($1.04 assuming dilution) compared to $.96 ($.94 assuming dilution) for 1997. Aaron's Rental Purchase division's revenues increased 33% to $53.3 million for the fourth quarter of 1998 versus $40.2 million for the 1997 quarter. For the year Aaron's Rental Purchase revenues rose 38% to $200.0 million compared to $144.4 million for 1997. Systemwide revenues for the Company, including revenues of rental purchase franchised stores, were up 26% to $120.9 million for the quarter and up 27% to $464.2 million for the year compared to 1997. "These record results reflect the strong performance of all our operating divisions," said R. Charles Loudermilk, Sr., Chairman and Chief Executive Officer of Aaron Rents. "Our rent-to-rent division continues to grow with 109 stores open at year end, while the Aaron's Rental Purchase division expanded to 318 stores including 136 franchised stores at the end of the year. We anticipate continuing strong growth as the result of our strategic plan to grow on all fronts -- rent-to-rent, rental purchase, and rental purchase franchising." Aaron Rents, Inc., based in Atlanta, currently has a total of 438 owned and franchised stores in 36 states for the rental and sales of residential and office furniture and accessories, consumer electronics and household appliances. The Company manufactures furniture, bedding, and accessories at 11 facilities in four states.