Aarons 2010 Annual Report Download - page 44

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Quarterly Financial Information (Unaudited)
(In Thousands, Except Per Share) First Quarter Second Quarter Third Quarter Fourth Quarter
Year Ended December 31, 2010
Revenues $495,269 $444,999 $452,150 $484,429
Gross Profit* 239,827 215,725 217,994 226,822
Earnings Before Taxes From Continuing Operations 59,562 39,329 42,085 49,810
Net Earnings 36,975 24,435 26,179 30,787
Earnings Per Share .45 .30 .32 .38
Earnings Per Share Assuming Dilution .45 .30 .32 .38
Year Ended December 31, 2009
Revenues $473,950 $417,310 $415,259 $446,268
Gross Profit* 226,571 206,191 203,254 207,323
Earnings Before Taxes From Continuing Operations 57,236 44,350 34,999 39,854
Net Earnings From Continuing Operations 35,360 27,826 24,655 25,037
(Loss) Earnings From Discontinued Operations, Net of Tax (209) (76) (19) 27
Earnings Per Share .44 .34 .30 .31
Earnings Per Share Assuming Dilution .43 .34 .30 .31
* Gross profit is the sum of lease revenues and fees, retail sales, and non-retail sales less retail cost of sales, non-retail cost of sales, depreciation of lease merchandise and
write-offs of lease merchandise.
Information on segments and a reconciliation to earnings before
income taxes from continuing operations are as follows:
Related Party Transactions
The Company leases certain properties under capital leases with cer-
tain related parties that are more fully described in Note D above.
In 2009, the Company sponsored the son of its Chief
Operating Officer as a driver for the Robert Richardson Racing
team in the NASCAR Nationwide Series at a cost of $1.6 million.
The Company also paid $22,000 for team decals, apparel and
driver travel to corporate promotional events. The sponsorship
agreement expired at the end of the year and was not renewed.
Motor sports promotions and sponsorships are an integral part of
the Company’s marketing programs.
In the second quarter of 2009, the Company entered into an
agreement with R. Charles Loudermilk, Sr., Chairman of the
Board of Directors of the Company, to exchange 750,000 of
Mr. Loudermilk, Sr.’s shares of the Company’s Class A Common
Stock for 624,503 shares of its Nonvoting Common Stock having
approximately the same fair market value, based on a 30 trading
day average.
Notes to Consolidated Financial Statements
L
Note
M
Note
40