Aaron's, Inc. Declares 3-for-2 Stock Split
ATLANTA /PRNewswire via COMTEX/ -- Aaron's, Inc. (NYSE: AAN), the nation's leader in the sales and lease ownership and specialty retailing of residential and office furniture, consumer electronics, home appliances and accessories, today announced that the Board of Directors of the Company has declared a 3-for-2 stock split effected in the form of a 50% 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, 2010 to shareholders of record as of the close of business on April 1, 2010. Based upon the total number of outstanding shares of Common Stock and Class A Common Stock as of February 24, 2010, 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 Chief Executive Officer 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% to $1.753 billion and net earnings from continuing operations increased 32% to $112.9 million, both Company records. In addition, revenues of the Company's franchisees increased 14% 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% for the 2009 year compared to the previous year.
Aaron's will hold a conference call to discuss its first quarter financial results on Monday, April 26, 2010, at 5:00 pm Eastern Time. The public is invited to listen to the conference call by webcast accessible through the Company's website, www.aaronsinc.com, in the "Investor Relations" section. The webcast will be archived for playback at that same site.
Aaron's, Inc., based in Atlanta, currently has more than 1,700 Company-operated and franchised stores in 48 states and Canada. The Company's MacTavish Furniture Industries division manufactured approximately $72 million at cost of furniture and bedding at 11 facilities in five states in 2009. The majority of production of MacTavish is for shipment to Aaron's stores.
"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, 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, 2009. Aaron's undertakes no obligation to update or revise any forward-looking statement.
SOURCE Aaron's, Inc.