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Strategies & Market Trends : Can you beat 50% per month? -- Ignore unavailable to you. Want to Upgrade?

To: Smiling Bob who wrote (14649)	2/18/2009 12:58:42 PM
From: Smiling Bob	Respond to of 19257

Aaron Rents earnings soar 36% in fourth quarter Tight credit favors rent-to-own specialist Clint Engel -- Furniture Today, February 17, 2009 ATLANTA — Aaron Rents' fourth quarter net earnings soared 36% to $21.1 million as tightening consumer credit continued to work in the company's favor. The rent-to-own specialist's revenues in the quarter rose 11% from the same period a year earlier to $404.9 million. For the year, revenues increased 14% to $1.6 billion and earnings rose 12.4% to $90.2 million. "As we have experienced for quite some time, we continue to gain revenues and customers even in this economic environment," said Robin Loudermilk, Aaron Rents president and CEO. "As more people see the availability of their credit diminish or disappear, we expect our business will continue to be strong as we satisfy our customers' ongoing demand for basic home furnishings." Same-store revenues in company-operated Aaron's Sales & Lease Ownership stores increased 6.2% during the fourth quarter of 2008 compared to a year ago. The company said it had 740,000 customers at its corporate-owned stores and 363,000 customers at its franchise operations at the end of the year, a 19% increase in total customers over last year. Aaron sold its Aaron's Corporate Furnishings division late last year and has restated its results to reflect the division's revenues and expenses as discontinued operations. Diluted earnings per share were up 39% to 39 cents from 28 cents a year ago. For the year, earnings per share were up 14% to $1.66. During the quarter Aaron opened 26 company-owned and 30 franchised Sales & Lease Ownership stores. It acquired the accounts of 18 stores, purchased one store, and sold 11 stores in transactions with competitors. In addition, the company acquired 35 franchised stores during the quarter and opened three new Aaron's Office Furniture stores. The sale of the 47 Aaron's Corporate Furnishings stores, the merging of 20 RIMCO stores into Aaron's Sales & Lease Ownership stores, and the closing of seven company-owned stores and two franchised stores reduced total store count by 76 stores in the fourth quarter to 1,557. That included 1,027 company-owned and 495 franchised Sales & Lease Ownership stores. Aaron said it expects first-quarter revenues, excluding franchise revenues, to be more than $445 million and expects diluted earnings per share in the 49 cents to 54 cents range. It expects to grow its store count by 5% to 9% for the year.