Aarons 1997 Annual Report Download - page 8

F i n a ncial Information
Twelve Nine Nine
Year Ended Year Ended Months Ended Months Ended Months Ended Year Ended Year Ended
(Dollar Amounts in Thousands December 31, December 31, December 31, December 31, December 31, March 31, March 31,
Except Per Share) 1997 1996 1995 (unaudited) 1995 1994 (unaudited) 1995 1994
Operating Results
Systemwide Revenues (1) $364,306 $306,200 $256,500 $192,953 $177,773 $241,286 $189,781
Revenues:
Rentals & Fees 231,207 208,463 182,311 137,098 127,995 173,208 130,962
Sales 73,223 61,527 52,999 39,218 39,875 53,655 53,139
Other 6,321 4,255 2,465 1,908 1,471 2,029 1,083
310,751 274,245 237,775 178,224 169,341 228,892 185,184
Costs & Expenses:
Cost of Sales 55,914 46,168 38,274 28,350 28,772 38,696 38,879
Operating Expenses 149,728 135,012 119,590 90,027 85,464 115,028 91,927
Depreciation of
Rental Merchandise 71,151 64,437 55,408 41,612 39,912 53,708 37,310
Interest 3,721 3,449 3,172 2,323 2,185 3,033 2,063
280,514 249,066 216,444 162,312 156,333 210,465 170,179
Earnings Before
Income Taxes 30,237 25,179 21,331 15,912 13,008 18,427 15,005
Income Taxes 11,841 9,786 8,113 6,032 5,021 7,102 6,209
Net Earnings $ 18,396 $ 15,393 $ 13,218 $ 9,880 $ 7,987 $ 11,325 $ 8,796
Earnings Per Share $ .96 $ .81 $ .68 $ .51 $ .42 $ .59 $ .52
Earnings Per Share
Assuming Dilution .94 .77 .66 .49 .40 .58 .51
Dividends Per Share:
Common $ .04 $ .04 $ .05 $ .05 $ .05 $ .045 $ .04
Class A .04 .04 .02 .02 .02 .025 .03
Financial Position
Rental Merchandise, Net $176,968 $149,984 $122,311 $122,311 $119,781 $121,356 $113,599
Property, Plant &
Equipment, Net 39,757 33,267 23,492 23,492 23,532 24,181 18,819
Total Assets 239,382 198,103 158,645 158,645 155,914 157,527 144,917
Interest-Bearing Debt 76,486 55,365 37,479 37,479 46,894 43,159 53,123
Shareholders’ Equity 116,455 107,335 91,094 91,094 81,418 84,951 59,830
At Year End
Stores O pen:
Company-O perated 292 240 212 212 203 203 200
Franchise 101 61 36 36 24 26 15
Rental Agreements in Effect 219,800 179,600 158,900 158,900 152,100 156,600 126,700
Number of Employees 3,100 2,550 2,160 2,160 2,150 2,200 2,100
(1) Systemwide revenues include rental revenues of franchise Aaron’s Rental Purchase stores.
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S e l e c t e d
Record growth was achieved again as
MacTavish Furniture Industries produced $45 million of
merchandise at cost. This Aaron Rents’ division manufac-
tured 49% of the furniture rented or sold by the Company’s
rent-to-rent and rental purchase stores.
MacTavish ranks among the largest furniture manufactur-
ers in the United States, with a reputation for high-quality,
durable and stylish furniture for both residential and office
uses. Made especially for rental, MacTavish furniture incor-
porates 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-operated and
franchise, required a facility expansion at
MacTavish last year. Currently, the Company
manufactures furniture at five plants and pro-
duces bedding at four facilities—a part of the
vertical integration that makes Aaron Rents
unique in the industry.
The companycontinues to expand its distri-
bution system, another unique feature of Aaron Rents and
a key competitive advantage. These distribution centers, with a
combined warehouse space of 367,000 square feet, enable
Aaron Rents to guarantee quick delivery to customers and
support the continuing growth of the business. Merchandise
is warehoused in five distribution centers that are strategi-
cally located across the United States. A new facility to
serve the northern United States and a 200,000 square foot
national distribution center in southern Georgia are slated to
open in 1998.
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Distribution
Centers
Distribution
Centers
MacTavish
Furniture
Industries
MacTavish
Furniture
Industries
I GH QUALI T Y FUR NI TUR E I S T HE
HALL MAR K OF AC AVI S H UR NI T UR E
NDU S T R I E S K NOWN NAT I ONAL LY FOR I T S
CRAFT S MANS HI P AC AVI S H F UR NI T UR E
I S NOT ONL Y WEL L DES I GNE D AND S T YL I S H
B U T I S DE S I GNE D T O ME E T T H E T OUGH
DEMANDS OF T H E R E NT AL I NDUS T R Y .
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