Aaron Rents, Inc. (RNT), based in Atlanta, Georgia, currently has over 1,565 Company- operated and franchised stores in 48 states 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 12 facilities in five states.

The company recently announced its fourth quarter and fiscal year end results. For the fourth quarter 2007, revenues increased 14% to $388.6M compared to $339.9M for the fourth quarter 2006. Net earnings were $15.5M versus $19.0M for 2006. The Aaron’s Sales & Lease Ownership division increased its revenues in the fourth quarter to $358.6M, a 16% increase over the $309.8M in the fourth quarter previous year. Same store revenues (revenues earned in company-operated stores open for the entirety of both periods) in the Aaron’s Sales and Lease Ownership division increased 3.9% during the fourth quarter 2007 compared to the same quarter in the previous year.

For the fiscal year end, revenues increased 13% to $1.495B compared to $1.327B for the 2006 year. Net earnings were $80.3M versus $78.6M the previous year. For the year, the Aaron’s Sales and Lease Ownership division revenues were $1.366B, a 14% increase over the $1.201B recorded the previous year. According to R. Charles Loudermilk, Sr., chairman and chief executive officer, the year was marked by rapid expansion in the company’s store base as a net 215 new stores were added, a 16% increase over the previous year. The expenses of this store growth reduced earnings, and collection issues at company-operated stores resulted in many of the stores not performing at the same high level as the franchised stores.

“Although new store start-up expenses will continue into 2008,” continued Loudermilk. “We expect to see improved profit trends later in the year as we grow at a more measured rate, focusing on increasing revenues in existing stores and improving overall profitability.”

Let us hear your thoughts below: