Previous Statements by AAN
» Aaron's Inc's CEO Discusses Q@ 2011 Results - Earnings Call Transcript
» Aaron Rents Inc. Q4 2008 Earnings Call Transcript
» Aaron Rents, Inc. Q3 2008 (Quarter End 9/30/2008) Earnings Call Transcript
» Aaron Rents, Inc. Q2 2008 Earnings Call Transcript
I would now like to pass the conference back over to Mr. Danielson.Gilbert L. Danielson Rob, Ken, and Charlie will have a few comments and then I’ll add some further information. Robert C. Loudermilk, Jr. I appreciate everybody joining the call. We had our release earlier and we once again, recorded strong revenue growth this quarter with same store revenues up 5.3% and customer counts up 6.3% over the third quarter of this last year. In addition, although not revenues of Aaron’s, Inc., our franchise stores experienced a 3.1% growth in same store revenues and 3.2% increase in same store customer growth. The total of our corporate and franchise customers were up 9.8% over the same period a year ago. As noted in the earnings release, even those these gains are outstanding in the current economic conditions, we believe our customers continue to feel the strain of high unemployment and overall economic pressures. Our recession resilient business model has done well through many economic cycles as our large customer base needs a non-credit way to obtain basic home furnishings, and even more so in the current tight credit environment. We have again proved that with proper execution our business can do very well in difficult economic conditions. Our pre-tax margins were negatively affected this quarter due to the higher depreciation expense of lease merchandise, the cost of rapidly converting over 40 third-party stores acquired and converting the HOMESMART Store concept along with some other increased operating costs due to some positive operational changes we are implementing for future growth and development of the company. We are quite excited about the experimental HOMESMART weekly pay concept and are consciously ramping up the number of stores. Our current plan is to have approximately 65 HOMESMART stores open by year end and slow down any further openings until we can fully evaluate the store’s financial performance and returns.
Excluding a law suit related charge discussed earlier in the second quarter, net earnings for the nine months of 2011 would have been $105.8 million and earnings per share, assuming dilution, excluding the law suit related charges would have been $1.32, a 23% increase over the nine months of last year. Also note, during the third quarter the company received $125 million from an issuance of a senior unsecured note in a private placement. These funds have and will be used for general corporate purposes and for the repurchase of company stock. We repurchased a substantial number of shares of stock during the quarter.On October 14 th the company closed on its previously announced $10 billion British pound investment in Perfect Home Holdings Limited a UK rent-to-own company. We feel this investment of a 11.5% ownership in the company will give us good exposure to the UK market and can be a springboard for possible European and international expansion. We are quite impressed with the Perfect Home management team and owners. We feel that our partnership will be mutually beneficial in the years to come. Our Woodhaven Manufacturing plants had a slight decrease in production in dollars of 2% in the quarter but had an increase in production in dollars of 17% for the year-to-date, a reflection of the increasing demand by the Aaron’s stores for our furniture and bedding products. Woodhaven is on track to have a record year in shipments. Thanks for the support of the company and now I’ll turn the call over to Ken for a couple of comments. Read the rest of this transcript for free on seekingalpha.com