Aarons 2003 Annual Report Download - page 4

opened in the future is nearly as large as the
year-end franchise store base of 287.
• The 2003 operating performance did not go
unnoticed in the stock market. Our Common
Stock price increased 38% during 2003 and
the Company reached a record market capi-
talization of over $650 million. In August of
2003, we effected a 3-for-2 stock split in the
form of a 50% stock dividend and increased
the cash dividend per share 50%.
For the year, systemwide revenues were $1 billion,
an 18% increase over 2002. Consolidated
revenues increased 20% to a record $766.8
million compared to $640.7 million in 2002.
Net earnings for the year were $36.4 million,
an increase of 33% over the $27.4 million
earned the previous year. Fully diluted earnings
per share were $1.10 in 2003 compared to
$.86 per diluted share in 2002. Same store rev-
enues for the Aaron’s Sales & Lease Ownership
stores opened in comparable periods increased
10.1% in 2003, an excellent performance.
2
We could not be more proud of the Company’s
2003 performance and are confident that there is
“more growth in store.” Operating highlights for
the year include:
• Systemwide revenues reached an all-time
record, crossing the one billion dollar milestone.
Revenues from Company operations were
$766.8 million, an increase of 20% over the
record 2002 performance. Revenues in the
Aaron’s Sales & Lease Ownership Division
increased 26% for the year.
• Net earnings also set records, up 33% for the
year to $36.4 million.
• We are particularly proud to note that 441 of
our Company-operated and franchise Aaron’s
Sales & Lease Ownership stores had revenues in
excess of $1 million in 2003, more than double
the industry average for annual store revenues.
• We added 143 new stores to the Aaron’s Sales
& Lease Ownership system, an increase of
22%. The Company-operated sales and lease
ownership store count increased 21% and the
number of franchised stores increased 24%.
The Company ended 2003 with 847 stores in
43 states, Puerto Rico, and Canada, including
60 units in the Rent-to-Rent division.
• We accelerated an aggressive acquisition
strategy in 2003, adding 59 Company-operated
stores (of which 26 were acquired franchise
stores) through the purchase of rental
contracts and/or store fronts from various
independent rental operators. We have
identified numerous attractive locations
in existing and new markets as potential
future acquisition candidates. The favorable
economics of acquiring rental contracts and
stores supplement our internal growth strategy.
• Franchise operations set records in both
revenues and earnings in 2003. We awarded
area development agreements for 112 new
franchise stores, including our first ventures into
Canada (six stores to be opened in Ontario) and
Alaska. The number of franchised stores to be
to Our Shareholders
William K. Butler, Jr.
President, Aaron’s Sales &
Lease Ownership Division
R. Charles
Loudermilk, Sr.
Chairman and Chief
Executive Officer
Robert C. Loudermilk, Jr.
President and Chief
Operating Officer