Aarons 2003 Annual Report Download - page 36

34
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, 2003 and December 31, 2002, and the related
consolidated statements of earnings, shareholders’ equity,
and cash flows for each of the three years in the period
ended December 31, 2003. 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 reasonable 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 statement
Report of Independent Auditors
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, 2003 and 2002, and the consolidated
results of their operations and their cash flows for each of
the three years in the period ended December 31, 2003, in
conformity with accounting principles generally accepted
in the United States.
As discussed in Note B, on January 1, 2002, the
Company adopted Statement of Financial Accounting
Standards No. 142, Goodwill and Other Intangible Assets,
and changed its method of depreciating sales and lease
ownership rental merchandise.
Atlanta, Georgia
February 24, 2004
Note M: Quarterly Financial Information (Unaudited)
First Second Third Fourth
(In Thousands, Except Per Share) Quarter Quarter Quarter Quarter
YEAR ENDED DECEMBER 31, 2003
Revenues $191,260 $177,741 $188,406 $209,390
Gross Profit* 92,986 90,912 97,475 103,253
Earnings Before Taxes 13,907 13,906 13,733 16,297
Net Earnings 8,748 8,761 8,651 10,266
Earnings Per Share .27 .27 .26 .31
Earnings Per Share Assuming Dilution .27 .26 .26 .31
YEAR ENDED DECEMBER 31, 2002
Revenues $156,663 $151,162 $157,838 $175,025
Gross Profit* 79,074 78,822 79,948 84,079
Earnings Before Taxes 9,457 10,666 10,669 12,860
Net Earnings 5,921 6,696 6,721 8,102
Earnings Per Share .20 .22 .21 .25
Earnings Per Share Assuming Dilution .20 .21 .20 .25
* Gross profit is the sum of rentals and fees, retail sales, and non-retail sales less retail cost of sales, non-retail cost of sales, and depreciation
of rental merchandise.