FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Quarterly Report under Section 13 or 15 (d)
of the Securities Exchange Act of l934
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September 30, 2004 |
1-13941 |
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For Quarter Ended |
Commission File No. |
AARON RENTS, INC.
(Exact name of registrant as
specified in its charter)
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Georgia |
58-0687630 |
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(State or other
jurisdiction of |
(I. R. S. Employer |
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309 E.
Paces Ferry Road, N.E. |
30305-2377 |
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(Address of principal executive offices) |
(Zip Code) |
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(404) 231-0011 |
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(Registrant’s telephone number, including area code) |
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Not Applicable |
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(Former name, former
address and former |
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Indicate by check mark whether registrant (l) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of l934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ý
No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
Yes ý
No o
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
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Title of Each Class |
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Shares Outstanding as of |
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Common Stock, $.50 Par Value |
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41,338,097 |
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Class A Common Stock, $.50 Par Value |
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8,396,233 |
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AARON RENTS, INC.
INDEX
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PART I. FINANCIAL INFORMATION |
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Item 1. |
Financial Statements: |
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Consolidated Balance Sheets -September 30, 2004 (Unaudited) and December 31, 2003 |
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Consolidated Statements of Cash Flows (Unaudited) - Nine Months Ended September 30, 2004 and 2003 |
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Notes to Consolidated Financial Statements (Unaudited) |
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Independent Registered Public Accounting Firm Review Report |
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Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Item 3. |
Quantitative and Qualitative Disclosure of Market Risk |
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Item 4. |
Controls and Procedures |
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PART II. OTHER INFORMATION |
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Item 6. |
Exhibits |
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Signatures |
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PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements
AARON RENTS, INC. AND SUBSIDIARIES
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(Unaudited) |
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December 31, |
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(In Thousands, Except Share Data) |
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ASSETS |
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Cash |
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$ |
150 |
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$ |
95 |
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Accounts Receivable (net of allowances of $2,900 in 2004 and $1,718 in 2003) |
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32,561 |
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30,878 |
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Rental Merchandise |
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609,454 |
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518,741 |
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Less: Accumulated Depreciation |
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(203,670 |
) |
(175,728 |
) |
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405,784 |
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343,013 |
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Property, Plant and Equipment, Net |
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105,729 |
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99,584 |
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Goodwill and Other Intangibles, Net |
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68,606 |
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55,485 |
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Prepaid Expenses and Other Assets |
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27,077 |
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26,237 |
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Total Assets |
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$ |
639,907 |
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$ |
555,292 |
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LIABILITIES & SHAREHOLDERS’ EQUITY |
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Accounts Payable and Accrued Expenses |
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$ |
86,497 |
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$ |
83,854 |
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Dividends Payable |
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646 |
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655 |
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Deferred Income Taxes Payable |
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67,898 |
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55,290 |
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Customer Deposits and Advance Payments |
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15,111 |
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15,737 |
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Credit Facilities |
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108,797 |
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79,570 |
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Total Liabilities |
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278,949 |
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235,106 |
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Commitments & Contingencies |
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Shareholders’ Equity |
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Common Stock, Par Value $.50 Per Share; Authorized: 50,000,000 Shares; Shares Issued: 44,989,602 at September 30, 2004 and 44,990,212 at December 31, 2003 |
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22,495 |
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22,495 |
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Class A Common Stock, Par Value $.50 Per Share; Authorized: 25,000,000 Shares; Shares Issued: 12,063,856 at September 30, 2004 and 12,063,903 at December 31, 2003 |
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6,032 |
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6,032 |
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Additional Paid-in Capital |
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90,823 |
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88,305 |
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Retained Earnings |
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280,956 |
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243,415 |
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Accumulated Other Comprehensive Loss |
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(1,231 |
) |
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399,075 |
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360,247 |
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Less: Treasury Shares at Cost, |
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Common Stock, 3,656,395 Shares at September 30, 2004 and 4,223,625 Shares at December 31, 2003 |
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(22,213 |
) |
(24,157 |
) |
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Class A Common Stock, 3,667,623 Shares at September 30, 2004 and December 31, 2003 |
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(15,904 |
) |
(15,904 |
) |
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Total Shareholders’ Equity |
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360,958 |
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320,186 |
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Total Liabilities & Shareholders’ Equity |
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$ |
639,907 |
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$ |
555,292 |
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The accompanying notes are an integral part of the Consolidated Financial Statements
AARON RENTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
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Three Months Ended |
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Nine Months Ended |
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2004 |
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2003 |
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2004 |
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2003 |
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(In Thousands, Except Share Data) |
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REVENUES: |
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Rentals and Fees |
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$ |
173,721 |
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141,405 |
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$ |
516,318 |
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$ |
403,861 |
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Retail Sales |
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13,651 |
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15,672 |
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42,700 |
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54,318 |
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Non-Retail Sales |
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36,831 |
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25,499 |
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118,602 |
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81,926 |
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Other |
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7,445 |
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5,830 |
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26,807 |
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17,302 |
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231,648 |
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188,406 |
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704,427 |
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557,407 |
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COSTS AND EXPENSES: |
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Retail Cost of Sales |
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9,785 |
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11,900 |
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30,158 |
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40,146 |
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Non-Retail Cost of Sales |
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34,253 |
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23,571 |
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110,268 |
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76,050 |
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Operating Expenses |
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104,864 |
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