Aarons 2001 Annual Report Download - page 30

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27
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF AARON RENTS, INC.:
We have audited the accompanying consolidated balance sheets of Aaron Rents, Inc. and
Subsidiaries as of December 31, 2001 and 2000, and the related consolidated statements of
earnings, shareholders’ equity and cash flows for the years ended December 31, 2001, 2000
and 1999. These financial statements are the responsibility of the Company’s management.
Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the
United States. Those standards require that we plan and perform the audit to obtain reason-
able assurance about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial state-
ment presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the consolidated financial position of Aaron Rents, Inc. and Subsidiaries as of
December 31, 2001 and 2000, and the consolidated results of their operations and their
cash flows for each of the three years in the period ended December 31, 2001, in conformity
with accounting principles generally accepted in the United States.
Atlanta, Georgia
February 21, 2002
REPORT OF
INDEPENDENT
AUDITORS
First Second Third Fourth
(In Thousands Except Per Share) Quarter Quarter Quarter Quarter
YEAR ENDED DECEMBER 31, 2001
Revenues $141,417 $132,763 $132,516 $139,985
Gross Profit 75,857 71,442 70,034 68,859
Earnings Before Taxes 11,802 7,998 (3,158) 3,213
Net Earnings 7,329 4,967 (1,961) 2,001
Earnings Per Share $ .37 $ .25 $ (.10) $ .10
Earnings Per Share Assuming Dilution .37 .25 (.10) .10
YEAR ENDED DECEMBER 31, 2000
Revenues $125,372 $121,910 $124,850 $130,788
Gross Profit 65,660 64,357 64,818 67,158
Earnings Before Taxes 11,741 11,177 10,799 10,189
Net Earnings 7,278 6,929 6,706 6,348
Earnings Per Share $ .37 $ .35 $ .34 $ .32
Earnings Per Share Assuming Dilution .36 .35 .34 .32
In the third quarter of 2001, the Company recorded non-cash charges totaling
approximately $5.6 million, before income taxes, related to certain store closings and
related exit costs.
NOTE L:
QUARTERLY FINANCIAL
INFORMATION
(UNAUDITED)