Aarons 2008 Annual Report Download - page 40

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Note M: Quarterly Financial Information (Unaudited)
(In Thousands, Except Per Share) First Quarter Second Quarter Third Quarter Fourth Quarter
Year Ended December 31, 2008
Revenues $412,681 $387,014 $388,019 $404,894
Gross Profit * 194,757 188,978 184,643 188,678
Earnings Before Taxes From Continuing Operations 37,618 35,384 32,457 34,121
Net Earnings From Continuing Operations 22,563 22,361 19,835 21,010
Earnings From Discontinued Operations, Net of Tax 2,190 918 1,243 69
Continuing Operations:
Earnings Per Share .42 .42 .37 .39
Earnings Per Share Assuming Dilution .42 .41 .37 .39
Discontinued Operations:
Earnings Per Share .04 .02 .03 .00
Earnings Per Share Assuming Dilution .04 .02 .02 .00
Year Ended December 31, 2007
Revenues $362,770 $333,791 $333,716 $364,662
Gross Profit * 171,024 160,417 160,988 168,049
Earnings Before Taxes From Continuing Operations 43,610 28,576 22,459 23,107
Net Earnings From Continuing Operations 27,173 17,743 14,155 14,354
Earnings From Discontinued Operations, Net of Tax 2,034 1,914 1,764 1,138
Continuing Operations:
Earnings Per Share .50 .33 .26 .27
Earnings Per Share Assuming Dilution .49 .33 .26 .26
Discontinued Operations:
Earnings Per Share .04 .03 .03 .02
Earnings Per Share Assuming Dilution .04 .03 .03 .02
* 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.
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.
Motor sports sponsorships and promotions have been an
integral part of the Company’s marketing programs for a number
of years. In 2008, the Company sponsored the son of the Chief
Operating Officer as a driver for the Eddie Sharp Racing team in
the ARCA RE/MAX Series at an approximate cost of $260,000. In
2009, the Company will sponsor the driver as a member of the
Robert Richardson Racing team in the NASCAR Nationwide Series
at an estimated cost of $1.6 million.
During the first quarter of 2008, the Company purchased
for $704,000 the land and building of a Company-operated
store location owned by the daughter of the Chairman of the
Company and previously leased to the Company. The purchase
price was determined based upon an appraisal and other market
evaluations provided by unrelated third parties.
Notes to Consolidated Financial Statements
38