-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CDobB5ciKRsMsNomGDqcZpVnlGELMTv1dZy82H2hXU7HYAhCCQCwKAEVItPeZCFa vuc1yi/U+4GnmwYLs5ZgZA== 0000891092-04-000363.txt : 20040128 0000891092-04-000363.hdr.sgml : 20040128 20040128170333 ACCESSION NUMBER: 0000891092-04-000363 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040128 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040128 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AARON RENTS INC CENTRAL INDEX KEY: 0000706688 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-EQUIPMENT RENTAL & LEASING, NEC [7359] IRS NUMBER: 580687630 STATE OF INCORPORATION: GA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13941 FILM NUMBER: 04549851 BUSINESS ADDRESS: STREET 1: 309 E. PACES FERRY ROAD, N.E. STREET 2: (NONE) CITY: ATLANTA STATE: GA ZIP: 30305-2377 BUSINESS PHONE: 404-231-0011 MAIL ADDRESS: STREET 1: 309 E. PACES FERRY ROAD, N.E. STREET 2: (NONE) CITY: ATLANTA STATE: GA ZIP: 30305-2377 8-K 1 e16728_8k.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------- FORM 8-K ---------- CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of Earliest Event Reported): January 28, 2004 ---------- AARON RENTS, INC. ------------------------------------------------------ (Exact name of Registrant as Specified in its Charter) Georgia 0-12385 58-0687630 - -------------------------------- ---------------- ------------------- (State or other Jurisdiction of (Commission File (IRS Employer Incorporation or Organization) Number) Identification No.) 309 E. Paces Ferry Road, N.E. Atlanta, Georgia 30305-2377 - ---------------------------------------- ------------------- (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code: (404) 231-0011 Not Applicable ------------------------------------------------------------- (Former name or former address, if changed since last report) ITEM 7. FINANCIAL STATEMENTS, PRO FORMA INFORMATION AND EXHIBITS (a) Financial Statements of Businesses Acquired: None. (b) Pro Forma Financial Information: None. (c) Exhibits: Exhibit No. Description - ----------- ----------- 99.1 Aaron Rents, Inc. press release dated January 28, 2004 (furnished pursuant to Item 12 of Form 8-K). ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On January 28, 2004, Aaron Rents, Inc. (the "Company") issued a press release to confirm earnings guidance for the fourth quarter and full fiscal year 2003, and updating fiscal 2004 guidance. A copy of the press release is attached as Exhibit 99.1. The press release presents the Company's systemwide revenues, along with the most directly comparable financial measure calculated and presented in accordance with GAAP, which the Company determined to be Company revenues, and a reconciliation of Company revenues to systemwide revenues. Non-GAAP systemwide revenues are calculated by adding Company revenues determined in accordance with GAAP to the revenues of the Company's franchisees and subtracting the Company's royalty revenues. Franchisee revenues, however, are not revenues of Aaron Rents, Inc. Management believes that presentation of non-GAAP financial measures such as systemwide revenues is useful because it allows investors and management to evaluate and compare the overall growth and penetration of the Aaron's brand in a more meaningful manner than relying exclusively on GAAP financial measures. Non-GAAP financial measures, however, should not be considered in isolation or as an alternative to financial measures calculated and presented in accordance with GAAP. Because systemwide revenues is not a measurement determined in accordance with GAAP and is thus susceptible to varying calculations, systemwide revenues as used in the press release may not be comparable to other similarly titled measures used by other companies. As used herein, "GAAP" refers to accounting principles generally accepted in the United States. The information in this Report, including the Exhibit attached hereto, is furnished solely pursuant to Item 12 of this Form 8-K. Consequently, it is not deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section. It may only be incorporated by reference in another filing under the Exchange Act or Securities Act of 1933 if such subsequent filing specifically references this Form 8-K. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. AARON RENTS, INC. By: /s/ Gilbert L. Danielson --------------------------------- Gilbert L. Danielson Executive Vice President, Date: January 28, 2004 Chief Financial Officer EX-99.1 3 e16728ex99_1.txt PRESS RELEASE Exhibit 99.1 Aaron Rents, Inc. Exceeds $1 Billion in Systemwide Revenues in Fiscal 2003; Confirms Earnings Guidance for Fourth Quarter; Raises 2004 Outlook ATLANTA, Jan. 28 /PRNewswire-FirstCall/ -- Aaron Rents, Inc. (NYSE: RNT), the nation's leader in the rental, sales and lease ownership, and specialty retailing of residential and office furniture, consumer electronics and home appliances and accessories, today announced that systemwide revenues exceeded the milestone $1 billion mark for fiscal 2003. In addition, the Company confirmed that revenues and earnings for the fourth quarter and year of 2003 were on plan and updated its outlook for 2004. Systemwide revenues for 2003 increased 18% to a record $1,033.4 million compared to $874.7 million a year ago. Reported Company revenues were also records, increasing 20% for both the fourth quarter and the 2003 year compared to the same periods of the previous year. A table reconciling Company revenues to systemwide revenues follows below. Revenues for the Company's Aaron's Sales & Lease Ownership division increased 24% and 26% for the fourth quarter and year, respectively, from the same periods a year ago. Same store revenues (revenues earned in Company- operated stores open for the entirety of both periods, which excludes Sight & Sound stores acquired in 2002) in the Aaron's Sales & Lease Ownership division increased 10.6% during the fourth quarter of 2003. Same store revenues increased 9.1% for stores open over two years at the end of December 2003. "We are obviously very pleased with the expected results," said R. Charles Loudermilk, Sr., Chairman and Chief Executive Officer of Aaron Rents. "The growth in our Aaron's Sales & Lease Ownership division has been impressive and we expect it to continue. We have a proven business model with exceptional growth potential." During the fourth quarter the Company awarded area development agreements to various independent operators to open 86 new Aaron's Sales & Lease Ownership franchise stores. For the full fiscal year the Company awarded area development agreements for the opening of 112 more franchise stores. At the end of December there were 241 franchise stores awarded that are expected to open over the next several years. At December 31 the Aaron's Sales & Lease Ownership division had 500 Company-operated and 287 franchise stores open. In addition, the Company had 60 rent-to-rent stores in operation. During fiscal year 2003 the Company increased its store base by 19%. "For the fourth quarter of 2003 Company revenues will exceed $209 million and we expect diluted earnings per share to be at the high range of our previous guidance of $.29 to $.31 per share. For the first quarter of 2004 we expect revenues to be over $220 million and diluted earnings per share in the range of $.32 to $.34 per share," Mr. Loudermilk continued. "We are revising upward our guidance for the year 2004, now expecting Company revenues to exceed $900 million (excluding revenues of franchisees) with diluted earnings per share in the range of $1.27 to $1.32. We plan to add approximately 140 new stores in 2004, a combination of Company-operated and franchised stores, and an increase of over 16% of our store base open at the end of 2003. We also continue to aggressively look for accretive acquisition opportunities." The Company will announce its fourth quarter and full year results for 2003 on February 24. Aaron Rents will hold a conference call to discuss its quarterly and full year financial results on Wednesday, February 25, 2004, at 10:30 am Eastern Time. The public is invited to listen in to the call by webcast accessible through our website, www.aaronrents.com , in the "Investor Relations" section. The webcast will be archived for playback at that same site. Aaron Rents, Inc., based in Atlanta, currently has over 850 Company- operated and franchised stores in the United States, Puerto Rico, and Canada for the rental and sale of residential and office furniture, accessories, consumer electronics and household appliances. The Company also manufactures furniture, bedding and accessories at 10 facilities in four states. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this news release regarding Aaron Rents, Inc.'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties which could cause actual results to differ materially from those contained in the forward-looking statements. These risks and uncertainties include factors such as changes in general economic conditions, competition, pricing, customer demand and other issues, and the risks and uncertainties discussed under "Certain Factors Affecting Forward Looking Statements" in the Company's Annual Report on Form 10-K for fiscal 2002, which discussion is incorporated herein by this reference Reconciliation of Company Revenues to Systemwide Revenues (1) (in millions) Fiscal Year Ended December 31, 2003 2002 Total Company Revenues $766.8 $640.7 Royalty Revenues (14.0) (12.3) Franchisees' Revenues 280.6 246.3 --------- --------- Systemwide Revenues $1,033.4 $874.7 ========= ========= (1) Non-GAAP systemwide revenues are calculated by adding GAAP revenues to the revenues of the Company's franchisees and subtracting the Company's royalty revenues. Franchisee revenues, however, are not revenues of Aaron Rents, Inc. SOURCE Aaron Rents, Inc. -0- 01/28/2004 /CONTACT: Gilbert L. Danielson, Executive Vice President, Chief Financial Officer of Aaron Rents, Inc., +1-404-231-0011, ext. 3334/ /Web site: http://www.aaronrents.com / (RNT) CO: Aaron Rents, Inc. ST: Georgia IN: REA SU: ERN ERP CCA MAV -----END PRIVACY-ENHANCED MESSAGE-----