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Safe Harbor Statement
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995:
Statements in this presentation regarding Aaron Rents, Inc.’s business which are not
historical facts are “forward-looking statements” that involve risks and uncertainties
which could cause actual results to differ from those contained in the forward-
looking statements. For a discussion of such risks and uncertainties, see “Risk
Factors” in the Company’s Annual Report on Form 10-K for fiscal 2005. Statements
in this presentation that are “forward-looking” include without limitation the
Company’s projected revenues, earnings, and store openings for 2006 and beyond.
This presentation shall not constitute an offer to sell, or the solicitation of an offer to
buy, any securities of Aaron Rents, Inc.
Aaron Rents, Inc.
Company Overview
Industry innovator in the sales and lease ownership of consumer electronics, furniture, appliances and accessories
Rapidly growing franchise system
Over 1,200 Company-operated and franchised stores in 46 states, Puerto Rico, and Canada
Growth prospects remain strong
Aaron Rents, Inc.
Investment Highlights
Large market – estimated 43% of all US households
Proven business model in both strong and weak economies
Rapid store expansion sets the stage for substantial revenue and earnings growth
Large pipeline of awarded franchises is accelerating the penetration of new markets
Experienced, highly motivated management
Aaron Rents, Inc.
Sales and Lease Ownership
An attractive vehicle for credit-challenged consumers to acquire electronics, furniture, and household appliances
A hybrid of traditional rent-to-own and credit retailing, combining the best features of each
Aaron Rents, Inc.
Competitive Advantages
“Combines the best of traditional rent-to-own and credit retailing”
Larger Store Layout9,000 sq. ft. vs. 4,500 sq. ft.
Faster Ownership Lower Total Cost
Wider Merchandise SelectionFlexible Payment Methods49% use check or credit cards
Fewer Payments12, 18 or 24 monthly payments
Aaron Rents, Inc.
A Winning Concept for Consumers
Ideal for credit-constrained consumer
Products may be returned at any time without further financial obligation
Lower total cost than rent-to-own competitors
Flexible payment options – cash,
check, or credit card
Wider selection of new merchandise
Aaron Rents, Inc.
A Winning Concept for Aaron’s
A more effective method of retailing to lower- to middle-income customers
Generates considerable repeat business
Aaron Rents, Inc.
Attractive, Well-Located Stores
Aaron Rents, Inc.
With Broad Merchandise Selections
Aaron Rents, Inc.
Sales and Lease OwnershipMerchandise Mix
A ppl i anc es and
E l ec tr oni c s
52%
Fur ni tur e
35%
C omputer s
12%
Other
1%
Electronics and Appliances
52%Furniture
33%
Computers
13%
Other
2%
Aaron Rents, Inc.
Merchandising
RCA 52” Integrated Digital
HDTV Widescreen
Cash & Carry $1,333.33
Lease (mo.) 99.99
Lease Ownership (24 mo.) 2,399.76
All-In Leasing Cost 2,639.74(includes 10% Aaron’s Service Plus)
Our Cost 1,030.00
Aaron’s is the largest vendor of RCA Widescreen TVs in the USA
Aaron Rents, Inc.
Profile of Operations
ManufacturingFacility
Store
Delivery to Customer
FulfillmentCenter
Vendors
Aaron Rents, Inc.
Operational Highlights
Stores draw from 6 to 10 mile urban radius or 2 to 3 rural counties
Average customer pays over $145 per month
Majority of customers will repeat
Established and thorough store audit program
Write-offs consistently less than 3% of revenues
Additional opportunities with Dell
Aaron Rents, Inc.
Marketing
• Strong NASCAR marketing program
• Dream Products• Sponsorship of Aaron’s Dream
Machine• Sponsorship of Aaron’s races
in Talladega
• Sponsorship of Arena Football League
• Currently over 20 million direct mail circulars monthly
Aaron Rents, Inc.
Franchise Program
• Highly successful franchise program now in 14th year
• 400 franchised stores open at March 31, 2006
• 250 awarded stores to open within 3 years
• Franchising accelerates growth
• Increases brand exposure
• Generates economies of scale
• Provides acquisition opportunities
Aaron Rents, Inc.
Franchised Growth
Pre-Tax Income
CAGR 29%
$12,621$13,913
$16,661
$19,347
$25,093
$29,474
$0$2,000$4,000$6,000$8,000
$10,000$12,000$14,000$16,000$18,000$20,000$22,000$24,000$26,000$28,000$30,000
($ in
thou
san
ds)
2000 2001 2002 2003 2004 2005
$7,484$9,212
$10,919
$13,600
$18,374
$22,363
$0$2,000$4,000$6,000$8,000
$10,000$12,000$14,000$16,000$18,000$20,000$22,000$24,000
($ in
thou
sand
s)2000 2001 2002 2003 2004 2005
CAGR 24.5%
Pre-Tax IncomeFranchised Revenues
CAGR 18.5%
Aaron Rents, Inc.
Vertical Integration & Corporate Furnishings
12 manufacturing facilities ensure quality, cost, quantity and service standards
16 strategically located fulfillment centers
Facilitate same or next day delivery from most stores
Facilitate inventory management
Aaron’s Corporate Furnishings business serves temporary needs of corporations and consumers
Aaron Rents, Inc.
Geographic Diversity
Aaron Rents, Inc.
Aaron Rents, Inc.
Financial Overview
Record Company Revenues
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
$1,300
($ in
mill
ions
)
2000 2001 2002 2003 2004 2005 2006 Proj.
$503
$547
$641
$767
$946
$1,125
$1,300
Aaron Rents, Inc.
Franchised Revenues*
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
($ in
mill
ions
)
2000 2001 2002 2003 2004 2005 2006 Proj.
* Franchised revenues are not revenues of Aaron Rents, Inc.
$161$199
$246$281
$358
$420
$500
Aaron Rents, Inc.
Net Earnings & Earnings Per Share
$27,261
$12,336
$27,440
$36,426
$52,616
$57,993
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
($ in
tho
usan
ds)
2000 2001 2002 2003 2004 2005
$0.61 $0.57
$0.73
$1.04
$0.27
$1.14
Aaron Rents, Inc.
Aggressive Store Expansion
361
193
439
209
482
232
560
287
674
357
806
392
823
400
0
250
500
750
1,000
1,250
2000 2001 2002 2003 2004 2005 As of 3/31/06
Company-Operated Franchised
554 648
847
1,031
714
1,1981,223
Company-Operated Sales & Lease Ownership Stores
Same Store Revenue Growth
10.6%
13.7% 14.7%
10.9%
8.0% 8.3%7.3%
8.4%
11.5%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
Q4 2003
Q1 2004
Q2 2004
Q3 2004
Q4 2004
Q1 2005
Q2 2005
Q3 2005
Q4 2005
Aaron Rents, Inc.
Attractive New Store Economics*
$1,211$1,183
$1,096
$939
$504
$28
$84
$106 $119
($141)($150)
$50
$250
$450
$650
$850
$1,050
$1,250
Year 1 Year 2 Year 3 Year 4 Year 5
($150)
($100)
($50)
$0
$50
$100
$150
Revenues
Pre-tax Earnings
*As published in Aaron Rents, Inc.’s 2006 Uniform Franchise Offering Circular (UFOC).
Based upon historical average Aaron’s Sales & Lease Ownership store performance Aaron Rents, Inc.
Revenues (in thousands)
Pre-T
ax Earnings (in thousands)
Outlook
Expect first quarter 2006 revenues in excess of $315
million and diluted EPS in the range of $.38 to $.41
For the fiscal year 2006 expect revenues to be in excess
of $1.3 billion with diluted EPS in the range of $1.45 to
$1.55
Outlook for next several years is to increase store base
approximately 15% per annum
Aaron Rents, Inc.
Growth Strategy
Build revenues and earnings in existing Company-operated and franchised stores
Aggressively open Company-operated and franchised stores
Seek opportunistic acquisitions
Aaron Rents, Inc.
Investment Highlights
Proven growth record
Proven business model
Proven management team
Financial strength
Aaron Rents, Inc.