Aaron's Q4 Income $36.6 Million

February 7, 2013  by in UnCategorized   

By Home Furnishings Business in Financial Reports on February 8, 2013

Rent-to-own retailer Aaron's (NYSE: AAN) reported net income of $36.6 million for the fourth quarter ended Dec. 31 versus $30.5 million for the same quarter.

Net sales for the quarter climbed 9 percent to $568.5 million, compared to $522.7 million in the fourth quarter of 2011.

For the year ended Dec. 31, net income was $173 million compared to $113.7 million for the previous year. Net sales for the year rose 10 percent to $2.2 billion versus $2.02 billion in the previous year.

During the third quarter, the retailer recorded a $10.4 million charge to earnings for costs associated with the retirement of company founder and chairman Charlie Loudermilk. Additionally, the Company accrued $36.5 million in the second quarter of 2011 related to a lawsuit with a former Aaron's associate. In the first quarter of 2012, the company settled the lawsuit and reversed into income $35.5 million of this charge. Also, in the fourth quarter of 2011, Aaron's incurred separation costs of $3.5 million related to the departure of its former CEO.

"We are pleased with the Company's performance for the fourth quarter and year ended 2012, both records in revenues and earnings," said Ronald W. Allen, chairman, president and CEO. "The results for the year were the best in the company's history and at the high end of our initial expectations, including a 6.6 percent increase in store count.  Customer growth during the quarter and the year was excellent, as demand remains strong for our high-quality, affordable basic home furnishings."