04-26-02
Roy Griffaw
RTO Online
Ken Butler, President of Aaron's Sales and Lease Ownership
division during the Q1 earnings conference call today...
"Our revenues are 18% larger than the company that claims to be the
number 2 player in the industry...I think it's fair to say we can now lay claim
to that position"
Like Columbus claiming the New World for the King of Spain, Ken Butler,
President of Aaron's Sales and Lease Ownership division, has planted his company
flag on the beach and declared with pride...we have arrived!
|
Aaron Rents Factoids |
| |
| Revenues up 26% |
| Same Store Sales up 7.4% |
| Decreased Debt by $22MM |
Project System wide Revenues 2002
$800MM |
| Opened In-House Ad Agency |
| Opened 10 stores in Q1 |
| Plan 3 new Dist. Centers |
| Retail sales up 261% over 2001 |
Switched to an "income forecasting"
depreciation model |
| Over 40,000 Computers on rent |
9 Franchise stores to open within
60 days |
| 95 Franchise Stores "In the
pipeline" |
| Will open 10 Company Stores 2002 |
After a record 1st Quarter, where total revenues increased to a level 18% higher
than Rent Way, Aaron Rents feels they are firmly in second place.
Listening to the conference call, one could not help but get the impression they
have their eyes on the number one spot, currently held by RTO industry behemoth
Rent-A-Center.
The purchase of the Heilig Meyers leases continues to figure prominently in
Aaron's success.
Robert Loudermilk, CEO...
"Heilig store locations are running about 20% ahead of the typical new store
ramp up"
Other Changes
Since switching to a 12 month contract on all computers (previously 24 months)
the keep rate has "gone through the roof". Shorter contracts equal higher keep
rates, lower maintenance, and no outdated technology in idle inventory.
An increased focus on customer retention and Management skills also figured into
the mix. Aarons University, a mobile training center, focuses on "Store Manager
Development". All Store and District Managers (and trainees) are required to
attend at least one session per month. No 'social promotion' here...all
attendees receive a grade based on actual test scores. Aaron's University has
give over 300 classes with 4000 attendees so far.
Don't you love it when a plan comes together...
Listen to the archived conference call here.
See the complete earnings
release here.
Aaron Rents, Inc. Reports First Quarter Results; Sees Continuing Strong Growth end
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