Aarons 1997 Annual Report Download

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309 E. Paces Ferry Road, N.E.
Atlanta, Georgia 30305-2377
(404) 231-0011
C o rp o rat e I n f o rmat i o n
Corporate Headquarters
309 E. Paces Ferry Rd., N.E.
Atlanta, Georgia 30305-2377
(404) 231-0011
http://www.aaronrents.com
Subsidiary
Aaron Investment Company
10th & Market Streets
Mellon Bank Building
2nd Floor
Wilmington, Delaware 19801
(302) 888-2351
Shareholder Information
Annual Shareholders Meeting
The annual meeting of the shareholders of Aaron Rents, Inc.
will be held on Tuesday, May 5, 1998, at 10:00 a.m. E.D.T. at the
First Union Plaza, 999 Peachtree Street, N.E., 28th Floor, Atlanta,
Georgia 30309.
Form 10-K
Shareholders may obtain a copy of the Company’s annual report
on Form 10-K filed with the Securities and Exchange Commission
upon written request, without charge. Such requests should be
sent to the attention of Gilbert L. Danielson, Vice President,
Finance, Chief Financial Officer, Aaron Rents, Inc.,
309 E. Paces Ferry Rd., N.E., Atlanta, Georgia 30305-2377.
Stock Listing Aaron Rents Inc.’s Common Stock and Class A
Common Stock are traded on the New York
Stock Exchange under the symbols “RNT” and
“RNT.A,” respectively.
Transfer Agent and Registrar
SunTrust Bank, Atlanta
Atlanta, Georgia
General Counsel
Kilpatrick Stockton LLP
Atlanta, Georgia
RNT
Annual Report 1997
America’s
&
Premier
Name
Furniture
Rental Rental
Purchase
In
AR layout Final.wpc 4/24/98 8:23 AM Page 1

Table of contents

  • Page 1
    ...& Market Streets Mellon Bank Building 2nd Floor Wilmington, D elaware 19801 (302) 888-2351 S h a r e h o l d e r I n f o r m at i o n Annual Shareholders Meeting The annual meeting of the shareholders of Aaron Rents, Inc. will be held on Tuesday, May 5, 1998, at 10:00 a.m. E.D.T. at the First Union...

  • Page 2
    ... corporate America's cu stom ers a w ide range of residential and office furniture, accessories, consumer electronics, in and household appliances for Furniture Rental rental, rental purchase Rental Purchase and sale. The major operations are the Rent-toRent division, the A aron's T Rental Purchase...

  • Page 3
    ... Illinois, Iowa and Pennsylvania, increasing our state count to 31. The franchise division alone added 40 stores during the year, a 66% growth in stores open! Rental pu rchase offers almo st u n limited potential for profitable expansion. Every town in America should have an Aaron's Rental Purchase...

  • Page 4
    ... ownership of merchandise in only 12 months. RenttoRent 5 Aaron Rents T O EET AR Th e targeti ng Th e creation NAT I ONAL ACCOUNT DEMAND ENT S ! ENT "T O" ENT #I VI S I ON ON OPENED I T S FI RS T T HR EE FUR NI T UR E e$$%& Th e development of our rental purchase franchise program, also...

  • Page 5
    ...Aaron's Rental Purchase stores are also located in more appealing areas with a wider selection of quality, name-brand furniture, electronics, appliances and other m erchandise. Electronics represent 54% of the rental NVI T I NG COLOR FUL AR ON S ENT AL purchase rental revenues. Furniture, appliances...

  • Page 6
    ... to acquire Aaron's Rental Purchase franchises. Typically, a franchise owner has significant ownership or operational experience in the rental or retail setting, including video outlets, fast food stores, furniture and appliance stores and automobile dealerships. Aaro n ' s Rental P u rchas e Fran...

  • Page 7
    ... York and Las Vegas m arket s were added t o t h e exist ing Aaron Rent s' C onvention Furnishings locations in Atlanta, C incinnati, O rlando and D allas. The acquisition provided our initial penetration of the Chicago market and paved the way for the Company's rent-to-rent business to open a store...

  • Page 8
    ... residential and office uses. Made especially for rental, MacTavish furniture incorporates unique features especially valuable for the rental industry, including reinforced frames, highly resilient foam and heavy-duty springs. The growing demands of the ever-increasing number of stores, both Company...

  • Page 9
    ... $89.5 m illion, respectively. Such cash flows include profits on the sale of rental return merchandise. The Company's primary capital requirements consist of acquiring rental merchandise for both rent-to-rent and Company-operated Aaron's Rental Purchase stores. As the Company continues to grow, the...

  • Page 10
    ... ve n u e s Rentals and Fees Retail Sales Non-Retail Sales O ther $231,207 58,602 14,621 6,321 310,751 $208,463 52,757 8,770 4,255 274,245 $137,098 35,537 3,681 1,908 178,224 Asse ts Cash Accounts Receivable Rental Merchandise Less: Accumulated D epreciation Property, Plant & Equipment, Net Prepaid...

  • Page 11
    ... 31, 1997 and 1996, and the Nine Months Ended D ecember 31, 1995. D ecember 31, 1996 by approximately $709,000 ($.04 per share). The Company recognizes rental revenues over the rental period and recognizes all costs of servicing and maintaining merchandise on rent as incurred. Property, Plant and...

  • Page 12
    ... The Company leases five buildings from certain officers of t h e C om p any u nder leases exp iring t h rou gh 1998 for annual rentals aggregating $383,000. The Company maintains a 401(k) savings plan for all fulltime employees with at least one year of service with the Company and who meet certain...

  • Page 13
    ... the Company's employee stock options have Note K: Franch i si ng o f Aaron's Rental Pu rchase Stores The Company franchises Aaron's Rental Purchase stores. As of D ecember 31, 1997 and D ecember 31, 1996, 186 and 155 franchises had been awarded, respectively. Franchisees pay a non-refundable...

  • Page 14
    ... on the New York Stock Exchange under the symbols "RNT" and "RNT.A," respectively. Previously, the C om pany's C om m on Stock and C lass A Common Stock were traded on The NASDAQ Stock Market under the symbols "ARO N" and "ARO NA," respectively. The approximate number of shareholders of the Company...