Aarons 2002 Annual Report Download - page 33

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31
NOTE M: QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
First Second Third Fourth
(In Thousands, Except Per Share) Quarter Quarter Quarter Quarter
YEAR ENDED DECEMBER 31, 2002
Revenues $156,663 $151,162 $157,838 $175,025
Gross Profit 79,074 78,822 79,948 84,079
Earnings Before Taxes 9,457 10,666 10,669 12,860
Net Earnings 5,921 6,696 6,721 8,102
Earnings Per Share .30 .33 .31 .37
Earnings Per Share Assuming Dilution .29 .32 .31 .37
YEAR ENDED DECEMBER 31, 2001
Revenues $141,417 $132,763 $132,516 $139,985
Gross Profit 75,857 71,442 70,034 68,859
Earnings Before Taxes 11,802 7,998 (3,158) 3,213
Net Earnings 7,329 4,967 (1,961) 2,001
Earnings Per Share .37 .25 (.10) .10
Earnings Per Share Assuming Dilution .37 .25 (.10) .10
In the third quarter of 2001, the Company recorded non-cash charges totaling approximately $5.6 million, before income taxes, related
to certain store closings and related exit costs.
To the Board of Directors and Shareholders
of Aaron Rents, Inc.:
We have audited the accompanying consolidated balance sheets
of Aaron Rents, Inc. and Subsidiaries as of December 31, 2002
and 2001, and the related consolidated statements of earnings,
shareholders’ equity, and cash flows for the years ended December
31, 2002, 2001, and 2000. These financial statements are the
responsibility of the Company’s management. Our responsibility
is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with auditing standards
generally accepted in the United States. Those standards require
that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material mis-
statement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
REPORT OF INDEPENDENT AUDITORS
In our opinion, the financial statements referred to above
present fairly, in all material respects, the consolidated financial
position of Aaron Rents, Inc. and Subsidiaries as of December 31,
2002 and 2001, and the consolidated results of their operations
and their cash flows for each of the three years in the period ended
December 31, 2002, in conformity with accounting principles
generally accepted in the United States.
As discussed in Note B, on January 1, 2002, the Company
adopted Statement of Financial Accounting Standards No. 142,
Goodwill and Other Intangible Assets, and changed its method of
depreciating sales and lease ownership rental merchandise.
Atlanta, Georgia
February 21, 2003