Aarons 2005 Annual Report Download - page 5

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3
We awarded new area development agree-
ments for the opening of 64 new Aaron’s
Sales & Lease Ownership franchised stores
last year. At year end we had 272 franchised
stores in the pipeline to be opened over the
next few years.
During 2005, our furniture manufacturing
division, MacTavish Furniture Industries,
produced morethan $80 million, at cost,
of furniture for our stores. Most of our
manufacturing facilities operated at capacity
in the third quarter to meet demand from
hurricane-related business. In addition,
we expanded our distribution network
again last year and now have 16 fulfillment
centers across the United States, enhancing
the vertical integration essential to our
superior customer service and enabling our
stores to offer same- or next-day delivery
as well as quick response to sudden changes
in demand.
The Company’s financial position and
balance sheet arevery strong and continue
to provide a competitive advantage. In
July,we completed a $60 million private
placement of debt. These 5.03% senior
unsecured notes due in 2012 provide long-
termfinancing at historically low borrowing
rates. The Company also negotiated a
new franchise loan facility for inventory
financing to our Canadian franchisees.
And for the second year, we increased
the cash dividend to shareholders.
During the year, Ingrid Saunders Jones,
Senior Vice President of Corporate External
Affairs for The Coca-Cola Company,
resigned from our Board of Directors.
We are extremely grateful for her 10
years of service. Elected
to succeed her was
John Schuerholz, the Executive Vice
President and General Manager of the
Atlanta Braves. His managerial ability
and business acumen make him a valuable
addition to our Boardof Directors.
Our management team was further
strengthened during the year as Christopher
M. Champion joined the Company as Vice
President, General Counsel. Within the
Aaron’s Sales & Lease Ownership division,
Paul A. Doize was promoted to Vice
President, Controller, from Controller,
and Steven A. Michaels was promoted
to Vice President, Franchise Finance,
from Director of Franchise Finance.
The tremendous growth of our Company
in recent years and its success over half a
centuryare a credit to the people of Aaron
Rents, our franchisees, our financial and
business partners, our shareholders and a
management team without equal.
We begin Aaron’s second half-century
with great anticipation that the best is
yet to come!
Sincerely,
R. Charles Loudermilk, Sr.
Chairman and Chief Executive Officer
Robert C. Loudermilk, Jr.
President and Chief Operating Officer
From left to right: Robin
Loudermilk, Charlie
Loudermilk, and Ken Butler,
President of Aaron’s Sales &
Lease Ownership, celebrating
the Company’s 50th year at the
National Managers Meeting.