Aaron 2Q revenues jump 11.6%
By Larry Thomas -- Furniture Today, August 6, 2007
Atlanta — Aaron Rents said second-quarter revenues were 11.6% above last year's comparable period as the rent-to-own major continued to add stores and generate more sales at existing stores.
Same-store sales were 5% ahead of last year's second quarter.
Revenues for the quarter amounted to $359 million, including $327.6 million from its Aaron's Sales and Lease Ownership division. Revenues from the unit were 13% ahead of the same period last year, but revenues from the Aaron's Corporate Furnishings unit slipped 1.6% to $30.6 million.
Net income totaled $19.7 million, or 36 cents per share. That's a 4.8% decline from the $20.7 million, or 39 cents per share, in last year's second quarter, but the 2006 period included a one-time gain of $4.4 million, or 6 cents per share, from the sale of Aaron's Puerto Rico operations.
"Our Aaron's Sales and Lease Ownership division continues to do well, and its prospects are quite good," said Charlie Loudermilk, chairman and CEO. "We feel we are still on track to add 250 stores during 2007."
During the second quarter, the division added 15 company-owned stores and 19 franchised stores, acquired 14 franchised stores and sold one company-owned store to a franchisee.
On June 30, the division had 868 company-owned and 454 franchised stores. There also were 22 company-owned and two franchised Rimco stores.
| Aaron Rents | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 6/30 | 2007 | 2006 | Change |
| (a) Includes franchise royalties and fees of $9.6 million in the 2007 quarter, $8.1 million in the 2006 quarter, $19.5 million in the 2007 six months and $16.4 million in the 2006 six months. | |||
| Revenues (a) | $358,985,000 | $321,727,000 | 11.6% |
| Operating income | 33,571,000 | 34,414,000 | (2.4%) |
| Net income | 19,657,000 | 20,650,000 | (4.8%) |
| Earnings per share | 0.36 | 0.39 | (7.7%) |
| 6 months ended 6/30 | 2007 | 2006 | Change |
| Revenues (a) | $746,919,000 | $669,014,000 | 11.6% |
| Operating income | 82,340,000 | 72,267,000 | 13.9% |
| Net income | 48,864,000 | 42,211,000 | 15.8% |
| Earnings per share | 0.89 | 0.81 | 9.9% |
