Aarons 2006 Annual Report Download - page 41

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39
NOTE L: RELATED PARTY TRANSACTIONS
The Company leases certain properties under capital leases
with certain related parties that are more fully described in
Note D above.
As part of its extensive marketing program, the Company has
sponsored professional driver Michael Waltrip’s Aaron’s Dream
Machine in the NASCAR Busch Series. The sons of the president
of the Company’s sales and lease ownership division were paid
by Mr. Waltrip’s company as drivers and raced in 2006 Aaron’s
sponsored cars full time in the USAR Hooters Pro Cup Series.
The amount paid in 2006 by the Company for the sponsorship
of Michael Waltrip attributable to the USAR Hooters Pro Cup
Series was $983,000, adjusted by credits in the amount of
$434,000 for changes from the 2005 racing season. Motor
sports sponsorships and promotions have been an integral part
of the Company’s marketing programs for a number of years.
NOTE M: QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
(In Thousands, Except Per Share) First Quarter Second Quarter Third Quarter Fourth Quarter
YEAR ENDED DECEMBER 31, 2006
Revenues $347,287 $321,727 $317,709 $339,869
Gross Profit* 171,965 163,588 162,839 168,619
Earnings Before Taxes 34,631 31,690 27,625 30,764
Net Earnings 21,561 20,650 17,383 19,041
Earnings Per Share .43 .40 .32 .35
Earnings Per Share Assuming Dilution .42 .39 .32 .35
YEAR ENDED DECEMBER 31, 2005
Revenues $279,348 $271,338 $278,667 $296,152
Gross Profit* 142,260 139,797 142,287 147,315
Earnings Before Taxes 29,618 25,644 13,506 23,569
Net Earnings 18,422 16,120 8,843 14,608
Earnings Per Share .37 .32 .18 .29
Earnings Per Share Assuming Dilution .36 .32 .17 .29
* 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.
NOTE N: SUBSEQUENT EVENT (UNAUDITED)
On February 27, 2007, the Company amended the franchise loan
facility and guaranty to increase the maximum commitment
amount from $115.0 million to $125.0 million.