Aarons 2005 Annual Report Download - page 3

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1
Financial Highlights . . . . . . . . . . . . . . . . . . . 1
Letter to Shareholders . . . . . . . . . . . . . . . . . . 2
The Aaron’s Story . . . . . . . . . . . . . . . . . . . . .4
Sales and Lease Ownership . . . . . . . . . . . 5
The Franchise System . . . . . . . . . . . . . . . . 7
Corporate Furnishings . . . . . . . . . . . . . . . 8
Products . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Manufacturing . . . . . . . . . . . . . . . . . . . . . 9
Funding Growth . . . . . . . . . . . . . . . . . . 10
Marketing . . . . . . . . . . . . . . . . . . . . . . . 10
The Aaron’s Corporate Culture . . . . . . . . . 12
Financial Information . . . . . . . . . . . . . . . . . 14
StoreLocations . . . . . . . . . . . . . . . . . . . . . . 43
Board of Directors and Officers . . . . . . . . . 44
Corporate and Shareholder Information . . . 44
Contents
Revenues By Year Net Earnings By Year
Year Ended Year Ended
(Dollar Amounts in Thousands, December 31, December 31, Percentage
Except Per Share) 2005 2004 Change
OPERATING RESULTS
Revenues $1,125,505 $946,480 18.9%
Earnings Before Taxes 92,337 84,506 9.3
Net Earnings 57,993 52,616 10.2
Earnings Per Share 1.16 1.06 9.4
Earnings Per Share Assuming Dilution 1.14 1.04 9.6
FINANCIAL POSITION
Total Assets $858,515 $700,288 22.6%
Rental Merchandise, Net 550,932 425,567 29.5
Credit Facilities 211,873 116,655 81.6
Shareholders’ Equity 434,471 375,178 15.8
Book Value Per Share 8.68 7.54 15.1
Debt to Capitalization 32.8% 23.7%
Pre-tax Profit Margin 8.2 8.9
Net Profit Margin 5.2 5.6
Returnon Average Equity 14.3 15.1
STORES OPEN AT YEAR END
Sales and Lease Ownership 748 616 21.4%
Sales and Lease Ownership Franchised* 392 357 9.8
Corporate Furnishings 58 58 0
Total Stores 1,198 1,031 16.2%
Financial Highlights
*Sales and Lease Ownership franchised stores are not owned or operated by Aaron Rents, Inc.
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