Aarons 2007 Annual Report Download - page 45

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43
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 full time
members of its team of drivers. In 2007 one driver raced in
the USAR Hooters Pro Cup Series and one driver raced in the
NOTE M: QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
(In Thousands, Except Per Share) First Quarter Second Quarter Third Quarter Fourth Quarter
YEAR ENDED DECEMBER 31, 2007
Revenues $387,934 $358,985 $359,381 $388,611
Gross Profit* 188,488 178,118 178,669 184,464
Earnings Before Taxes 46,880 31,675 25,313 24,977
Net Earnings 29,207 19,657 15,919 15,492
Earnings Per Share .54 .36 .29 .29
Earnings Per Share Assuming Dilution .53 .36 .29 .28
YEAR ENDED DECEMBER 31, 2006
Revenues $347,287 $321,727 $317,709 $339,869
Gross Profit* 167,365 158,188 159,039 161,619
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
* 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, depreciation of
rental merchandise and write-offs of rental merchandise.
Craftsman Truck Series. The Company’s sponsorship cost in
2007 for the drivers was approximately $730,000. In 2006
the drivers raced 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 attribut-
able 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.