Aarons 1997 Annual Report Download - page 2

F i n a ncial
Year Ended Year Ended
(Dollar Amounts in Thousands, December 31, December 31, Percentage
Except Per Share) 1997 1996 Change
OPERATING RESULTS
Revenues $310,751 $274,245 13.3%
Earnings Before Taxes 30,237 25,179 20.1%
Net Earnings 18,396 15,393 19.5%
Earnings Per Share 0.96 0.81 18.5%
Earnings Per Share Assuming Dilution 0.94 0.77 22.1%
FINANCIAL POSITION
Total Assets $239,382 $198,103 20.8%
Rental Merchandise, Net 176,968 149,984 18.0%
Interest-Bearing Debt 76,486 55,365 38.1%
Shareholders’ Equity 116,455 107,335 8.5%
Book Value Per Share 6.15 5.45 12.8%
Debt to Capitalization 39.6% 34.0%
Pre-Tax Profit Margin 9.7% 9.2%
Net Profit Margin 5.9% 5.6%
Return on Average Equity 16.4% 15.5%
STO RES OPEN
Rent-to-Rent 105 103 1.9%
Rental Purchase 181 135 34.1%
Rental Purchase Franchise 101 61 65.6%
Convention Furnishings 6 2 200.0%
Total Stores 393 301 30.6%
H i g h l i g h t s
1
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E N T T O E N T
E N T A L U R CH AS E
’93 ’94 ’95 ’96 ’97
INS
E VENUE S B Y ALE NDAR E AR E T AR NI NGS B Y AL ENDAR E AR
INS
$0
$5,000
$10,000
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’93 ’94 ’95 ’96 ’97
Aaron Rents, Inc. is a U.S. leader
in furniture rental and rental purchase
with 393 stores in 31 states. Positioned as
“America’s Premier N ame in Furniture
Rental and Rental Purchase,” the Company
offers both individual and corporate
customers a wide range of
residential and office furniture,
accessories, consumer electronics,
and household appliances for
rental, rental purchase
and sale. The major
operations are the Rent-to-
Rent division, the Aaron’s
Rental Purchase division, the Aaron Rents’
Convention Furnishings division, and
MacTavish Furniture Industries, which
supplies much of the furniture for the
Company’s rental and rental purchase
stores. Aaron Rents’ strategic focus is on
expanding its higher growth rental purchase
business while also growing its core rent-to-
rent business in selected markets.
America’s
Premier
Name in
Furniture
Rental Purchase
Rental
&
TA B L E O F O N T E N T S
I NANCI AL I GHLI GHT S . . . . . . . . . . . .1
E T T E R T O HAR E HOL DER S . . . . . . . . .2
US I NE S S EVI E W . . . . . . . . . . . . . . .4
E LE CT E D I NANCI AL NF OR MAT I ON . .13
ANAGE ME NT S I S CUS S I ON AND
NAL YS I S OF I NANCI AL ONDI TI ON
AND ES UL T S OF PE R AT I ONS . . . . . .14
ONS OL I DAT E D AL ANCE HE E T S . . . .16
ONS OL I DAT E D T AT E ME NT S
OF AR NI NGS . . . . . . . . . . . . . . . . .17
ONS OL I DAT E D T AT E ME NT S
OF HAR E HOL DE RS QUI T Y . . . . . . .17
ONS OL I DAT E D T AT E ME NT S
OF AS H L OWS . . . . . . . . . . . . . . . .18
OT ES T O ONS OL I DAT ED
I NANCI AL T AT EMENT S . . . . . . . . . .19
EPOR T OF NDEPENDENT
UDI T OR S . . . . . . . . . . . . . . . . . . . .23
T OR E OCAT I ONS . . . . . . . . . . . . . .24
OAR D OF I R E CT OR S
AND F FI CE RS . . . . . . . . . . . . . . . . .25
OR POR AT E AND HAR EHOL DE R
NFOR MAT I ON . . . . . . . . . . ACK OVER
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