Aarons 2011 Annual Report Download - page 43

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NOTE L:
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 the fourth quarter of 2011, the Company purchased an
airplane for $2.8 million and sold it to R. Charles Loudermilk,
Sr., Chairman of the Board of Directors of the Company, for
the same amount. The Company paid approximately $80,000 in
brokerage fees in connection with the transaction, for which Mr.
Loudermilk reimbursed the Company. In the fourth quarter of
2011, the Company transferred a Company-owned vehicle to Mr.
Loudermilk valued at $21,000.
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. to exchange 750,000
of Mr. Loudermilk, Sr.’s shares of the Company’s former Class
A Common Stock for 624,503 shares of its former Nonvoting
Common Stock having approximately the same fair market value,
based on a 30 trading day average.
NOTE M: QUARTERLY FINANCIAL
INFORMATION (UNAUDITED)
(In Thousands, Except Per Share) First Quarter Second Quarter Third Quarter Fourth Quarter
YEAR ENDED DECEMBER 31, 2011
Revenues $532,665 $482,700 $485,195 $523,489
Gross Profit* 259,542 236,958 231,942 242,163
Earnings Before Taxes From Continuing Operations 71,919 17,627 45,092 48,739
Net Earnings 44,389 10,799 28,045 30,534
Earnings Per Share .55 .14 .36 .40
Earnings Per Share Assuming Dilution .55 .13 .36 .40
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
* 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.
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