Aarons 2001 Annual Report Download - page 6

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in the Company absorbing $5.6 million of non-cash charges during the third
quarter. Even so, this original division of Aaron Rents produced more than $20
million in cash flow vital to funding the rapid growth of the sales and lease
ownership division.
The Aaron’s Sales & Lease Ownership division had its best year ever, adding
101 Company-operated stores. In addition, 27 franchised stores were opened,
increasing our systemwide sales and lease ownership store count to 573 at
the end of 2001. The Company’s rent-to-rent division had 75 stores at year-
end. Our franchise program continued to expand, providing an important extra
dimension to our growth. Franchised stores currently comprise 36 percent of
sales and lease ownership stores and produce a growing contribution to
earnings. The Aaron’s program, consistently ranked as a leader in franchising
surveys, attracts topflight entrepreneurs desiring to invest in and to build their
own business while helping our Company grow at an even faster rate than it
could by internal growth alone.
Our manufacturing division, MacTavish Furniture Industries, had another
strong year, turning out more than $47 million at cost in furniture for our
increasing number of stores. Construction began on expansion of our large
manufacturing facility in Cairo, Georgia, adding 100,000 square feet to almost
double its capacity. Our seventh regional distribution center was opened in
North Carolina, enhancing our nationwide distribution system. This gives us
competitive advantages and assures same-day or next-day delivery of customer
orders by our stores — a service that is critical in this business.
Another significant development was the completion and opening of
a new lamp manufacturing plant in Tampa, Florida. This facility, along with
the original plant in Los Angeles founded by acclaimed designer Avi Yofan,
supplies lamps, tables and accessories coordinated with our
furniture lines for the growing number of Aaron’s stores
and for independent retailers.
To meet the needs of our strong growth, a two-story
building with over 50,000 square feet of new office space
was completed during the year in the Atlanta suburb of
Kennesaw to accommodate the Company’s financial and
information technology operations.
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