Aaron's, Inc. Provides Shareholder Update

ATLANTA - Feb. 21, 2014 // PRNewswire // - Aaron's, Inc. (NYSE: AAN), a leader in the sales and lease ownership and specialty retailing of residential furniture, consumer electronics, home appliances and accessories, today provided a shareholder update with respect to the publicly filed letter to the Aaron's Board of Directors from Mr. Brian Kahn, the Managing Member of Vintage Capital Management, LLC ("Vintage").

The Company notes that Mr. Kahn, a former franchisee of Aaron's, and Vintage, which is a controlling person of Buddy's Home Furnishings, a small rent-to-own business that competes with Aaron's, have over the years made unfunded and unspecific non-binding proposals to acquire Aaron's. Members of the Aaron's Board and management team have met with Mr. Kahn on a number of occasions to listen to his proposals. A Transaction Committee of the Company's Board of Directors, consisting of independent outside directors, with the aid of its professional advisors, will carefully review and evaluate the letter from Vintage and will provide its recommendation to the Board in due course.

The Board is highly confident that the continued execution of the Company's strategy will enhance long-term shareholder value and has recently approved management's 2014 Business Plan. Aaron's remains firmly committed to creating value for its shareholders, as evidenced by recent actions authorized by the Board of Directors and executed by management:

Commitment to Returning Capital to Shareholders

  • Completed the repurchase of $125 million of the Company's common stock at an average price of $27.76 per share under an accelerated share repurchase program during the first quarter of 2014
  • Increased the dividend rate for eight consecutive years, including the November 2013 increase of the Company's quarterly dividend by 23.5%

Investing in Aaron's Growth Potential

  • Opened 44 Company-operated and 45 franchised stores during 2013, positioning the Company for revenue and earnings growth
  • Strengthened the Company's management team in key areas during 2013, including operations, marketing, legal and strategic planning
  • Installed new operating systems in over 75% of stores that enhance customer service efficiency and enable better targeted sales and marketing initiatives

Improved Operational Efficiency and Effectiveness

  • Consolidated or sold six stores that were not meeting performance goals in 2013
  • Divested all of the assets of the Company's RIMCO operations in January 2014, enabling Aaron's to further focus efforts on improving the financial performance of Aaron's and HomeSmart stores
  • Reached agreements in principle to settle investigations by the Federal Trade Commission and the California Attorney General

Aaron's today filed a Form 8-K with the Securities and Exchange Commission disclosing certain amendments to the Company's bylaws that Aaron's believes are appropriate and in the best interests of the Company's shareholders.

Greenberg Traurig, LLP is serving as lead legal advisor and The Blackstone Group is serving as financial advisor to Aaron's.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this news release regarding Aaron's, Inc.'s business that 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, litigation, customer privacy, information security, 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, 2013. Statements in this release that are "forward-looking" include without limitation statements regarding Aaron's 2014 business plan."


Gilbert L. Danielson
Executive Vice President
Chief Financial Officer

Steve Frankel
Tim Lynch
Joele Frank
Wilkinson Brimmer Katcher

SOURCE Aaron's, Inc.


Social Reach:

Viewer Response:

comments powered by Disqus

Aaron's, Inc. »

Headquartered in Atlanta, Aaron's, Inc. is a leader in the sales and lease ownership and specialty retailing of furniture, consumer electronics, home appliances and accessories.


  1. Business Overview
  2. Franchise News

Franchise News Room »

News By Industry »

Hot Opportunities

Kids 'R' Kids Franchise Opportunity

Kids 'R' Kids
Kids 'R' Kids Learning Academies is a pioneer in the early childhood...

Batteries Plus Bulbs Franchise Opportunity

Batteries Plus Bulbs
Whether you're an existing multi-unit operator with a non-competing brand...

Nestle Toll House Cafe by Chip Franchise Opportunity

Nestle Toll House Cafe by Chip
Nestlé Toll House Café by Chip is the only major, national dessert café...

Kitchen Solvers Franchise Opportunity

Kitchen Solvers
As a Kitchen Solvers franchisee you will not need any prior remodeling or...

Taco Bueno Franchise Opportunity

Taco Bueno
At Taco Bueno, we continue to make Tex-Mex the right way. We prepare our...

Nékter Juice Bar Franchise Opportunity

Nékter Juice Bar
Interested in owning a business in a thriving industry where health &...

Camille Albane Franchise Opportunity

Camille Albane
Decades of trendsetting chain-salon experience in Europe give Camille...

Launch Trampoline Park Franchise Opportunity

Launch Trampoline Park
Launch Trampoline Park is an indoor sports and entertainment facility...

A Franchise Update Media Group Production
Franchise Update Media | P.O. Box 20547 // San Jose, CA 95160 // PH. (408) 402-5681
Copyright © 2001 - 2016. All Rights Reserved. Site Hosting Provided By: wishVPS on FUMG3

In Loving Memory Of Timothy Gardner (1987-2014)