Aaron's Inc. Declares 3-2 Stock Split

March 23, 2010  by in UnCategorized   

By Home Furnishings Business in Financial Reports on March 24, 2010

Atlanta-based rent-to-own furniture, consumer electronics, appliances and accessories chain Aaron's Inc. (NYSE: AAN) declared a 3-for-2 stock split, the company announced Tuesday.

The split is in the form of a 50 percent stock dividend on both Common Stock (AAN) and Class A Common Stock (AAN.A).

The holders of both common stock and Class A common stock will receive 1/2 new share for each share held. New shares and cash payments in lieu of fractional shares will be distributed on April 15 to shareholders of record as of the close of business on April 1. Based upon the total number of outstanding shares of common stock and Class A common stock as of Feb. 24, the stock split will increase the outstanding shares of common stock to approximately 69.7 million shares and increase the outstanding shares of Class A common stock to approximately 11.6 million shares.

"The larger number of shares that will be outstanding as a result of this stock split should increase the trading volume in our stock to the benefit of shareholders," said Robert C. Loudermilk Jr., president and CEO of Aaron's. "This split is a reflection of the success of the company and we feel will improve the marketability of our shares. The appreciation of Aaron's stock over the years has rewarded long-term shareholders handsomely, and we are excited and confident about the future growth and financial prospects of the company."

For the 2009 fiscal year, Aaron's revenues increased 10 percent to $1.753 billion, and net earnings from continuing operations increased 32 percent to $112.9 million, both company records. In addition, revenues of the company's franchisees increased 14 percent for the 2009 year. Revenues of franchisees, however, are not revenues of Aaron's Inc. Total store count, a combination of both company-operated and franchised stores, increased 8.8 percent for the 2009 year compared to the previous year to more than 1,700.