Aaron Rents, Inc. Sells Aaron's Corporate Furnishings Division to CORT Business Services Corporation
15 Setembro 2008 - 9:30AM
PR Newswire (US)
ATLANTA, Sept. 15 /PRNewswire-FirstCall/ -- Aaron Rents, Inc.
(NYSE:RNT), the nation's leader in the sales and lease ownership,
specialty retailing and rental of residential and office furniture,
consumer electronics and home appliances and accessories, today
announced that it has entered into an agreement to sell the assets
of its Aaron's Corporate Furnishings division to CORT Business
Services Corporation. Aaron's Corporate Furnishings, the Company's
residential rent-to-rent business, recorded revenues of $99 million
for the fiscal year ended December 31, 2007 and currently operates
47 stores. Aaron Rents, Inc. will receive cash of approximately $72
million from the sale, subject to adjustments, in addition to
payment for certain accounts receivable. The Company is retaining
certain liabilities of the business, including its accounts payable
and accrued expenses. "The residential rent-to-rent business
currently represents approximately 6% of our consolidated revenues,
and for many years has not had the same growth rate or prospects of
our fast growing and highly successful Aaron's Sales & Lease
Ownership division," stated Robert C. Loudermilk, Jr., President
and Chief Executive Officer of Aaron Rents. "This sale will enable
us to focus our resources and energy on growing the Aaron's Sales
& Lease Ownership division. With this divesture, we anticipate
the Company will record increased revenue and earnings growth rates
in future periods." Aaron Rents will treat the sale for accounting
purposes as a discontinued operation beginning with its third
quarter results. The Company does not expect to record any
significant gain or loss on the sale and its earnings guidance for
the third quarter and fiscal year 2008 is unchanged. The sale,
which is subject to customary closing conditions, including
antitrust clearance, is expected to close by the end of 2008. Aaron
Rents, Inc., based in Atlanta, currently has a total of more than
1,575 Company-operated and franchised stores in 48 states and
Canada. "Safe Harbor" Statement under the Private Securities
Litigation Reform Act of 1995: Statements in this news release
regarding Aaron Rents, Inc.'s business and the pending divestiture
discussed herein which are not historical facts are
"forward-looking statements" that involve risks and uncertainties
which could cause actual results to differ materially from those
contained in the forward-looking statements. These risks and
uncertainties include factors such as changes in general economic
conditions, competition, pricing, customer demand and other issues,
and the risks and uncertainties discussed under "Risk Factors" in
the Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 2007. Statements in this release that are
"forward-looking" include without limitation the effect of the
divestiture on the Company's future revenue and earnings growth
rates. DATASOURCE: Aaron Rents, Inc. CONTACT: Gilbert L. Danielson,
Executive Vice President and Chief Financial Officer of Aaron
Rents, Inc., +1-404-231-0011 Web site: http://www.aaronrents.com/
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