Aarons 2007 Annual Report Download - page 5

These achievements were accomplished in the face
of several challenges. Expenses associated with our
rapid expansion were substantial, and there were
also unforeseen store construction delays and, in
some areas, less than expected growth in revenues.
Our ambitious goal to add 250 stores in 2007 was a
significant challenge, and we ended the year adding
215 stores. That was still a major accomplishment and
a very strong growth rate. Same store revenues for
Company-operated Aaron’s Sales & Lease Ownership
stores increased 2.1% for stores open over two years
at the end of 2007.
We are now following a more attainable expansion
plan and concentrating on improving overall profit-
ability and revenue growth in existing stores. Our
priority in 2008 is to achieve a higher level of perfor-
mance in all areas of our operations. Over the next
several years, our plan is to increase overall store
count in the range of 10-13% annually. Our objective
is to achieve consistent growth in revenues, earnings,
stores and shareholder value.
Our optimism in achieving these goals is based on
several factors.
• First, we have a tremendous existing and potential
customer base — our largest market is households
with less than $50,000 annual income, which
represents roughly half of the U.S. population.
• Second, Aaron’s has established market leadership
in serving our customers. We have moved consumer
rental, sales and lease ownership products to Main
Street America over the past two decades with our
attractive and spacious stores and a wide range
of high-quality brand-name furniture, appliances
and electronics.
• Third, our dedicated and highly capable associates
are committed to providing the highest level of
service and achieving record performance measures
every day. Reflecting this, several of our key asso-
ciates were advanced during 2007 to positions of
greater responsibility in the Aaron’s Sales & Lease
Ownership division. John T. Trainor was promoted
to Vice President, Information Technology, and Paul
A. Doize to Vice President, Real Estate. In addition,
due to the division’s growth, we added two new
operating regions during the year and promoted
Michael H. Pokorny to Vice President, Northeast
Operations, and John A. Allevato to Vice President,
RIMCO Operations, of these new regions.
We look forward with enthusiasm to the year ahead,
confident that we can take advantage of the oppor-
tunities to achieve continuing strong and consistent
growth to the benefit of our customers, our associ-
ates, our business partners and our shareholders.
Sincerely,
R. Charles Loudermilk, Sr.
Chairman and Chief Executive Officer
Robert C. Loudermilk, Jr.
President and Chief Operating Officer
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