Aarons 2005 Annual Report Download - page 12

three additional equity offerings, raising an aggregate
of $88 million. Cash dividends were first paid in 1987,
and the payout has increased several times. Shares of the
Company’s stock have been split five times since the ini-
tial public offering. A thousand dollars invested in Aaron
Rents at the time the Company went public would be
worth approximately $18,500 at December 31, 2005.
Management continues to believe that being a public
company is a competitive advantage, providing access
to growth capital through public and private channels.
The Company’s balance sheet and financial position are
extremely strong.
Marketing
Asthe Aaron’s Sales & Lease Ownership division has
grown, marketing has become moresophisticated
and national in scope. For many years, newspaper
and direct mail circulars were the primary avenues to
reach consumers, but current marketing efforts are
multifaceted,
utilizing many dis-
tribution channels
including television,
radio, direct mail,
promotions and
sponsorships. The
in-house marketing
department has
developed a port-
folio of marketing
tools, such as
10
The 2000s
and office
systems, all
in 12 modern
manufacturing
plants. Most
case goods are
sourced overseas
through estab-
lished vendor relationships.
Products are distributed
through a network of
16 modern fulfillment
centers strategically located
in 14 states and Puerto Rico, enabling the Company
to offer same- or next-day delivery. Vertical integration
allows the Company to respond quickly to shifts in
demand or styling. This was dramatically proven during
the thirdquarter of 2005 when the manufacturing
division worked beyond capacity to achieve a 39%
increase in production in order to meet the demands
for replacement furniturein the hurricane-impacted
markets of Louisiana and Texas.
Funding Growth
By1982, the Company was approaching $50 million
in revenues and operated over 60 stores in 11 states.
Historically,the Company had been funded through
bank borrowings and private debt. An initial offering
of 1 million shares of common stock was completed in
1982. This offering significantly increased the Company’s
financial flexibility and avenues of funding, also provid-
ing shareholders with an attractive growth vehicle. Since
that initial public offering, Aaron Rents has completed
Y2K came and went. Since 2000,
the iPOD has been introduced and
cellphones now incorporate cameras.
AU.S. space mission has landed
on Mars. Aaron Rents has passed
$1.0 billion in revenues and opened
the first stores in Canada.
2000 –Acquired
82 locations from
Heilig-Meyers
2002 –Secondary
offering of 1.7
million shares raising
$34 million
Store Growth
0
200
400
600
800
1,000
1,200
2004 20052001 2002 2003
(number of stores)
2000 –500th
store opens
2003 –Total Company
and franchised store
revenues exceed
$1.0 billion