Aarons 2009 Annual Report Download - page 40

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The Company leases certain properties under capital leases with cer-
tain related parties that are more fully described in Note D above.
In 2009, the Company sponsored the son of its Chief
Operating Officer as a driver for the Robert Richardson Racing
team in the NASCAR Nationwide Series at a cost of $1.6 million.
The Company also paid $22,000 for team decals, apparel and
driver travel to corporate promotional events. The sponsorship
agreement expired at the end of the year and was not renewed.
Motor sports promotions and sponsorships are an integral part of
the Company’s marketing programs.
In the second quarter of 2009, the Company entered into
an agreement with R. Charles Loudermilk, Sr., Chairman of the
Board of Directors of the Company, to exchange 500,000 of Mr.
Loudermilk, Sr.’s shares of the Company’s voting Class A Common
Stock for 416,335 shares of its non-voting Common Stock hav-
ing approximately the same fair market value, based on a 30
trading day average
.
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(In Thousands, Except Per Share) First Quarter Second Quarter Third Quarter Fourth Quarter
Year Ended December 31, 2009
Revenues $473,950 $417,310 $415,259 $446,268
Gross Profit* 226,571 206,191 203,254 207,323
Earnings Before Taxes From Continuing Operations 57,236 44,350 34,999 39,854
Net Earnings From Continuing Operations 35,360 27,826 24,655 25,037
(Loss) Earnings From Discontinued Operations, Net of Tax (209) (76) (19) 27
Continuing Operations:
Earnings Per Share .66 .51 .45 .46
Earnings Per Share Assuming Dilution .65 .51 .45 .46
Discontinued Operations:
Earnings Per Share .00 .00 .00 .00
Earnings Per Share Assuming Dilution .00 .00 .00 .00
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
* Gross profit is the sum of lease revenues and fees, retail sales, and non-retail sales less retail cost of sales, non-retail cost of sales, depreciation of
lease merchandise and write-offs of lease merchandise.
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