Aaron’s, Inc. (NYSE: AAN), is a leader in the sales and lease ownership and specialty retailing of residential furniture, consumer electronics, home appliances and accessories with more than 2,000 Company-operated and franchised stores in 48 states and Canada. Founded in 1955 by entrepreneur R. Charles Loudermilk and publicly traded since 1982, Aaron's was a pioneer in the furniture rental industry.
There are two operating divisions of Aaron’s: sales and lease ownership and manufacturing. The Aaron's Sales & Lease Ownership division is the largest and fastest growing division, serving credit-constrained consumers in need of basic home furnishings, appliances and electronics. Customers range from white-collar professionals and blue-collar workers to young couples and retirees. At September 30, 2012, the Company had 1,190 Company-operated Aaron's Sales and Lease Ownership stores, 717 Aaron's Sales & Lease Ownership franchised stores, 78 HomeSmart stores, one franchised HomeSmart store, 17 Company-operated RIMCO stores, and six franchised RIMCO stores. The total number of stores open at the end of September 2012 was 2,009.
The Woodhaven Furniture Industries Division manufactures the majority of furniture leased and sold by Aaron’s. Vertical integration allows the Company to control quality, styling and cost, leading to superior customer service.For the third quarter of 2012, revenues increased 9% to $529.5 million compared to $484.7 million for the third quarter in 2011. Net earnings were $28.9 million versus $28.0 million last year. Diluted earnings per share were $.38 compared to $.36 per share in 2011.
For the first nine months of 2012, revenues advanced 10% to $1.654 billion compared to $1.500 billion for the first nine months of 2011. Net earnings were $136.4 million versus $83.2 million a year ago. Diluted earnings per share for the first nine months were $1.77 for 2012 compared to $1.04 in 2011.
Same store revenues increased 6.5% during the third quarter of 2012 compared to the third quarter of 2011, and customer count on a same store basis was up 8.2%. The Company had 1,090,000 customers and its franchisees had 572,000 customers at the end of the third quarter of 2012, a 12.2% increase in total customers over the number at the end of the third quarter a year ago (customers of our franchisees, however, are not customers of Aaron's, Inc.).