Aarons 2004 Annual Report Download - page 11

9
During 2004, the Aaron’s Sales & Lease
Ownership Division acquired a net of
61 stores, 17 of which were purchased
from franchisees.
The Company continues to pursue acquisition
opportunities to complement new store openings
and to achieve economies of scale in such areas as
distribution and marketing. In terms of economic
returns, the most attractive targets are competitive
stores where the acquisition excludes storefronts and
Acquisitions
Adding to Our Store Base
real estate obligations and the book of contracts is
folded into an existing Aaron’s store, significantly
leveraging fixed costs. The Company also seeks
acquisitions of small chains and single units to
increase penetration in existing markets and to
enter new markets. Generally, these acquisitions are
based on a multiple of rental revenue, and the stores
are converted to the Aaron’s name as quickly as
possible in order to take advantage of Aaron’s
advertising and name recognition.
312*
324*
343*357*
101*
106*
116*
121*
136*
194*
201*199*
209*
138*
136*
142*
155*
211*
217*
225*
232*
166*
179*
186*
193*
86*
76*
71*
61*
54*
45*
38*
36*
31*
28*
26*
24*
18* 21*
15*
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
$100,000
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
*Number of stores
**Revenues of franchised stores are not revenues of Aaron Rents, Inc.
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
($ in 000s)
240*
249*
243*
287*
Quarterly Revenues of Franchised Stores**