On April 25, rental company Aaron Rents
- Revenues increased 11.7%, led by a 12% rise in rental revenue.
- During the quarter, Aaron's sales and lease ownership division opened 13 new company-operated stores, 13 new franchised stores, and three RIMCO stores.
- For the second quarter, the company expects revenue of more than $350 million and diluted earnings per share in the range of $0.35 to $0.39. For fiscal 2007, $1.5 billion in revenue is expected, with earnings per share in the range of $1.55 to $1.65.
- Aaron Rents carries a two-star rating (out of five) in Motley Fool CAPS, while competitor and Inside Value recommendation Rent-A-Center
(NASDAQ:RCII) languishes with just one star.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$387.9 |
$347.3 |
11.7% |
|
Net Profit |
$29.2 |
$21.6 |
35.5% |
|
EPS |
$0.53 |
$0.42 |
26.2% |
|
Diluted Shares |
55.0 |
51.1 |
7.6% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin** |
13.4% |
13.2% |
0.2 |
|
Operating Margin |
12.6% |
10.9% |
1.7 |
|
Net Margin |
7.5% |
6.2% |
1.3 |
**Only for retail and non-retail sales.
Margins are the earnings engine. See how they work.
Balance Sheet Highlights|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$9.4 |
$6.2 |
52.5% |
|
Accounts Rec. |
$46.7 |
$43.6 |
7.2% |
|
Inventory |
$637.8 |
$569.1 |
12.1% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Long-Term Debt* |
$90.0 |
$200.6 |
(55.1%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
Sorry, folks. We'll have to wait for the 10-Q to find out what the cash flows are.
Related Foolishness:
- Aaron Rents Sprouting Growth
- Relief From Perquisite Unfairness
- Foolish Forecast: Aaron Rents Races Ahead
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