1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Quarterly Report under Section 13 or 15 (d)
of the Securities Exchange Act of l934
JUNE 30, 2001 0-12385
------------- -------
For Quarter Ended Commission File No.
AARON RENTS, INC.
-----------------
(Exact name of registrant as
specified in its charter)
GEORGIA 58-0687630
------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
309 E. PACES FERRY ROAD, N.E.
ATLANTA, GEORGIA 30305-2377
---------------- ----------
(Address of principal executive offices) (Zip Code)
(404) 231-0011
--------------
(Registrant's telephone number, including area code)
NOT APPLICABLE
(FORMER NAME, FORMER ADDRESS AND FORMER
FISCAL YEAR, IF CHANGED SINCE LAST REPORT)
Indicate by check mark whether registrant (l) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
l934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X
No
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Shares Outstanding as of
Title of Each Class August 13, 2001
------------------- ---------------
Common Stock, $.50 Par Value 16,116,861
Class A Common Stock, $.50 Par Value 3,829,506
2
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
AARON RENTS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30 December 31,
2001 2000
----------------- ---------------
(In thousands, except share data)
ASSETS
Cash $ 97 $ 95
Accounts Receivable 22,356 23,637
Rental Merchandise 386,590 381,930
Less: Accumulated Depreciation (123,863) (114,217)
---------------- ---------------
262,727 267,713
Property, Plant and Equipment, Net 70,575 63,174
Prepaid Expenses and Other Assets 34,126 25,760
---------------- ---------------
Total Assets $ 389,881 $ 380,379
================ ===============
LIABILITIES & SHAREHOLDERS' EQUITY
Accounts Payable and Accrued Expenses $ 25,471 $ 34,693
Dividends Payable 399 399
Deferred Income Taxes Payable 28,814 20,986
Customer Deposits and Advance Payments 12,989 10,994
Bank Debt 94,046 100,000
Other Debt 7,638 4,769
---------------- ---------------
Total Liabilities 169,357 171,841
Commitments & Contingencies
Shareholders' Equity
Common Stock, Par Value $.50 Per Share;
Authorized: 25,000,000 Shares;
Shares Issued: 18,270,987 9,135 9,135
Class A Common Stock, Par Value $.50 Per Share;
Authorized: 25,000,000 Shares;
Shares Issued: 5,361,761 2,681 2,681
Additional Paid-in Capital 53,705 53,662
Retained Earnings 197,680 185,782
Accumulated Other Comprehensive Loss (918)
---------------- ---------------
262,283 251,260
Less: Treasury Shares at Cost,
Common Stock, 2,154,126 Shares
at June 30, 2001 and 2,230,446 Shares
at December 31, 2000 (27,523) (28,486)
Class A Common Stock, 1,532,255 Shares at
June 30, 2001 and December 31, 2000 (14,236) (14,236)
---------------- ---------------
Total Shareholders' Equity 220,524 208,538
---------------- ---------------
Total Liabilities & Shareholders' Equity $ 389,881 $ 380,379
================ ===============
See Notes to Consolidated Financial Statements
3
AARON RENTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
Three Months Ended Six Months Ended
-------------------------------- ------------------------------------
June 30, June 30,
-------------------------------- ------------------------------------
2001 2000 2001 2000
-------------------------------- ------------------------------------
(in thousands, except per share amounts)
REVENUES:
Rentals and Fees $ 100,537 $ 89,257 $ 202,605 $ 176,771
Retail Sales 14,754 14,530 32,030 31,835
Non-Retail Sales 13,494 14,392 31,440 31,222
Other 3,978 3,731 8,105 7,454
------------ ----------- ---------------- -----------
132,763 121,910 274,180 247,282
------------ ----------- ---------------- -----------
COSTS AND EXPENSES:
Retail Cost of Sales 10,985 10,191 23,207 22,424
Non-Retail Cost of Sales 12,773 13,412 29,502 28,905
Operating Expenses 65,718 55,594 132,272 112,009
Depreciation
of Rental Merchandise 33,585 30,219 66,067 58,482
Interest 1,704 1,317 3,332 2,544
------------ ----------- ---------------- -----------
124,765 110,733 254,380 224,364
------------ ----------- ---------------- -----------
EARNINGS BEFORE
TAXES 7,998 11,177 19,800 22,918
INCOME TAXES 3,031 4,248 7,504 8,711
------------ ----------- ---------------- -----------
NET EARNINGS $ 4,967 $ 6,929 $ 12,296 $ 14,207
============ =========== ================ ===========
EARNINGS PER SHARE $ .25 $ .35 $ .62 $ .72
------------ ----------- ---------------- -----------
EARNINGS PER SHARE
ASSUMING DILUTION .25 .35 .61 .71
------------ ----------- ---------------- -----------
CASH DIVIDENDS DECLARED
PER SHARE
Common Stock $ .02 $ .02 $ .02 $ .02
------------ ----------- ---------------- -----------
Class A Common Stock $ .02 $ .02 $ .02 $ .02
------------ ----------- ---------------- -----------
WEIGHTED AVERAGE
SHARES OUTSTANDING 19,911 19,790 19,891 19,845
============ =========== ================ ===========
WEIGHTED AVERAGE
SHARES OUTSTANDING
ASSUMING DILUTION 20,141 19,905 20,110 19,998
============ ============ ================ ============
See Notes to Consolidated Financial Statements
4
AARON RENTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS
OF CASH FLOWS
(Unaudited)
<Table>
<Caption>
Six Months Ended
----------------
June 30,
--------
2001 2000
---------- ---------
(in thousands)
OPERATING ACTIVITIES
Net Earnings $ 12,296 $ 14,207
Depreciation and Amortization 73,478 64,258
Deferred Income Taxes 7,828 4,478
Change in Accounts Payable and
Accrued Expenses (10,149) (9,159)
Change in Accounts Receivable 1,281 (2,405)
Other Changes, Net (3,994) 3,950
---------- --------
Cash Provided by Operating Activities 80,740 75,329
---------- ---------
INVESTING ACTIVITIES
Additions to Property, Plant and Equipment (16,511) (9,512)
Book Value of Property Retired or Sold 2,705 4,709
Additions to Rental Equipment (118,678) (132,316)
Book Value of Rental Equipment Sold 62,248 55,292
Contracts and Other Assets Acquired (8,025) (422)
---------- ---------
Cash Used by Investing Activities (78,261) (82,249)
---------- ---------
FINANCING ACTIVITIES
Proceeds from Revolving Credit Agreement 133,115 97,765
Repayments on Revolving Credit Agreement (139,069) (89,161)
Increase in Other Debt 2,869 1,694
Dividends Paid (398) (399)
Acquisition of Treasury Stock (4,625)
Issuance of Stock Under Stock Option Plans 1,006 1,638
---------- ---------
Cash (Used) Provided by Financing Activities (2,477) 6,912
---------- ---------
Increase (Decrease) in Cash 2 (8)
Cash at Beginning of Year 95 99
---------- ---------
Cash at End of Period $ 97 $ 91
========== =========
See Notes to Consolidated Financial Statements
5
AARON RENTS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE A: PRINCIPLES OF CONSOLIDATION
The consolidated financial statements include the accounts of Aaron Rents, Inc.
("the Company") and its wholly-owned subsidiaries. All significant intercompany
accounts and transactions have been eliminated.
The Consolidated Balance Sheet as of June 30, 2001, and the Consolidated
Statements of Earnings and Cash Flows for the quarter and the six month period
ended June 30, 2001 and 2000, have been prepared without audit. In the opinion
of management, all adjustments necessary to present fairly the financial
position, results of operations and cash flows at June 30, 2001 and for all
periods presented have been made.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted. It is suggested that these financial statements
be read in conjunction with the financial statements and notes thereto included
in the Company's Annual Report on Form 10-K filed with the Securities and
Exchange Commission for the year ended December 31, 2000. The results of
operations for the period ended June 30, 2001 are not necessarily indicative of
the operating results for the full year. Certain amounts in the 2000 segment
information have been reclassified to conform to the 2001 presentation.
In June 2001, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standard No. 142, "Goodwill and Other Intangible Assets",
effective for fiscal years beginning after December 15, 2001. Under the new
rules, goodwill and intangible assets deemed to have indefinite lives will no
longer be amortized but will be subject to annual impairment tests in accordance
with the Statement. Other intangible assets will continue to be amortized over
their useful lives.
The Company will apply the new rules on accounting for goodwill and other
intangible assets beginning in the first quarter of 2002. During 2002, the
Company will apply the non-amortization provisions and perform the first of the
required impairment tests of goodwill and indefinite lived intangible assets as
of January 1, 2002. The Company has not yet determined what effect the statement
will have on the earnings and financial position of the Company.
NOTE B: ACCUMULATED OTHER COMPREHENSIVE LOSS AND COMPREHENSIVE INCOME
The following is a summary of the accumulated other comprehensive loss for the
six month period ended June 30, 2001:
December 31, 2000 -
Cumulative effect of the adoption of FAS 133,
Net of income taxes $(497)
Unrealized loss on the fair market value of
Interest rate swap agreements, net of income taxes (421)
-----
$(918)
=====
Comprehensive income for the six month period ended June 30, 2001 totaled
$11,378,000. There were no differences between comprehensive income and net
income in the six month period ended June 30, 2000.
6
NOTE C: SEGMENT INFORMATION
<Table>
<Caption>
Three Months Ended Six Months Ended
---------------------- ----------------------
2001 2000 2001 2000
--------- --------- --------- ---------
(in thousands)
REVENUES FROM EXTERNAL CUSTOMERS:
Sales & Lease Ownership $ 88,714 $ 72,203 $ 184,265 $ 149,429
Rent-to-Rent 38,789 44,163 82,080 89,735
Franchise 3,532 3,048 6,980 5,978
Other 808 1,782 1,881 2,606
Manufacturing 9,376 13,022 22,001 30,470
Elimination of intersegment revenues (9,477) (13,042) (22,225) (30,535)
Cash to accrual adjustments 1,021 734 (802) (401)
--------- --------- --------- ---------
Total revenues from external customers $ 132,763 $ 121,910 $ 274,180 $ 247,282
========= ========= ========= =========
EARNINGS BEFORE INCOME TAXES:
Sales & Lease Ownership $ 4,196 $ 3,872 $ 11,556 $ 10,438
Rent-to-Rent 2,164 4,228 6,694 9,001
Franchise 2,261 1,749 4,430 3,443
Other (1,236) (245) (1,976) (542)
Manufacturing (546) 711 (627) 1,423
--------- --------- --------- ---------
Earnings before income taxes for reportable segments 6,839 10,315 20,077 23,763
Elimination of intersegment profit 331 (624) 599 (1,239)
Cash to accrual adjustments 828 901 (876) (166)
Other allocations and adjustments 585 560
--------- --------- --------- ---------
Total earnings before income taxes $ 7,998 $ 11,177 $ 19,800 $ 22,918
========= ========= ========= =========
7
PART I - FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED
FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Special Note Regarding Forward-Looking Information: Except for historical
information contained herein, the matters set forth in this Form 10-Q are
forward-looking statements. The Company notes that the forward-looking
statements set forth involve a number of risks and uncertainties that could
cause actual results to differ materially from any such statements, including
the risks and uncertainties discussed in the Company's Annual Report on Form
10-K for the year ended December 31, 2000, filed with the Securities and
Exchange Commission, under the caption "Certain Factors Affecting Forward
Looking Statements," which discussion is incorporated herein by this reference.
RESULTS OF OPERATIONS:
QUARTER ENDED JUNE 30, 2001 VERSUS QUARTER ENDED JUNE 30, 2000:
Total revenues for the second quarter of 2001 increased $10.9 million (8.9%) to
$132.8 million compared to $121.9 million in 2000 due primarily to an $11.3
million (12.6%) increase in rentals and fees revenues, less a $674,000 (2.3%)
decrease in sales. Of this increase in rentals and fees revenues, $15.7 million
was attributable to the Aaron's Sales and Lease Ownership division. Rentals and
fees revenues from the Company's rent-to-rent operations decreased $4.4 million
during the same period. The increase in rental revenues in the sales and lease
ownership division was attributable to new stores opened since the end of the
second quarter last year (298 Company-operated sales and lease ownership stores
open at the end of the second quarter of 2001 compared to 232 at the end of the
second quarter of 2000) and an increase of 10.6% in comparable same store
revenues. The decrease in rental revenues in the rent-to-rent operations was
attributable to the reduction in stores open (91 rent-to-rent stores open at the
end of the second quarter of 2001 compared to 99 at the end of the second
quarter of 2000) and a decrease of 9.3% in comparable same store revenues.
Revenues from retail sales for the second quarter 2001 increased $224,000 (1.5%)
to $14.8 million compared to $14.5 million for the second quarter of 2000. This
slight increase was primarily due to an $873,000 increase in rental return
merchandise and new sales in the sales and lease ownership division partially
offset by a $649,000 decrease in sales of rental return merchandise and new
sales in the Company's rent-to rent operations. Non-retail sales, which
primarily represent merchandise sold to Aaron's Sales and Lease Ownership
franchisees, decreased $898,000 (6.2%) to $13.5 million compared to $14.4
million for the same period last year. The decrease in non-retail sales is
primarily the result of less sales to sales and lease ownership franchisees due
to the fewer number of franchise store openings with 15 stores opening in the
first six months of 2001 compared to 25 in the comparable period last year.
Other revenues for the second quarter of 2001 increased $247,000 (6.6%) to $4.0
million compared to $3.7 million in 2000. This increase was mainly attributable
to fees and royalties from franchise operations increasing $479,000 (15.8%) to
$3.5 million compared to $3.0 million last year, reflecting a net increase of 28
franchised stores since the end of the second quarter of 2000 and increasing
operating revenues of maturing franchise stores partially offset by a decline of
$232,000 in various other miscellaneous revenue accounts.
8
Cost of sales from retail sales increased $794,000 (7.8%) to $11.0 million for
the second quarter 2001 compared to $10.2 million for the second quarter of
2000. Cost of sales as a percentage of retail sales increased to 74.5% from
70.1%. The increase of cost of sales as a percentage of retail sales is
primarily due to the rent-to-rent operations reducing inventory levels by
lowering retail prices. Cost of sales from non-retail sales decreased $639,000
(4.8%) to $12.8 million from $13.4 million, and as a percentage of non-retail
sales, increased to 94.7% from 93.2%.
Operating expenses increased $10.1 million (18.2%) to $65.7 million from $55.6
million. As a percentage of total revenues, operating expenses were 49.5% in
2001 and 45.6% in 2000. Operating expenses increased as a percentage of total
revenues between quarters primarily due to costs associated with the acquisition
of store locations formerly operated by one of the nation's largest furniture
retailers along with other new store openings.
Depreciation of rental merchandise increased $3.4 million (11.1%) to $33.6
million, from $30.2 million, and as a percentage of total rentals and fees,
decreased to 33.4% from 33.9%. The decrease as a percentage of revenues is
primarily due to the higher margins in the Aaron's Sales and Lease Ownership
division.
Interest expense increased $387,000 (29.4%) to $1.7 million compared to $1.3
million. As a percentage of total revenues, interest expense was 1.3% in 2001
compared to 1.1% in 2000. The increase in interest expense as a percentage of
total revenues was due to higher debt levels in the second quarter of 2001.
Income tax expense decreased $1.2 million (28.6%) to $3.0 million in the second
quarter 2001 compared to $4.2 million for the same period last year. The
Company's effective tax rate was 37.9% for the second quarter of 2001 compared
to 38.0% in 2000.
As a result, net earnings decreased $2.0 million (28.3%) to $5.0 million in the
second quarter of 2001 compared to $6.9 million for the same period last year.
As a percentage of total revenues net earnings were 3.7% in the current quarter
as compared to 5.7% for the same period last year. The decrease was attributable
to the significant revenue decline in the Company's rent-to-rent division as
well as the start up costs associated with the accelerated store openings of
former Heilig-Meyers stores which negatively affected earnings for the second
quarter of 2001.
The weighted average number of shares outstanding during the second quarter of
2001 was 19,911,000 compared to 19,790,000 (20,141,000 versus 19,905,000
assuming dilution) for the same period last year.
SIX MONTHS ENDED JUNE 30, 2001 VERSUS SIX MONTHS ENDED JUNE 30, 2000:
Total revenues for the first six months of 2001 increased $26.9 million (10.9%)
to $274.2 million compared to $247.3 million in 2000 due primarily to a $25.8
million (14.6%) increase in rentals and fees revenues, plus a $413,000 (0.7%)
increase in sales. Of this increase in rentals and fees revenues, $31.7 million
was attributable to the Aaron's Sales and Lease Ownership division. Rentals and
fees revenues from the Company's rent-to-rent operations decreased $5.9 million.
The increase in rental revenues in the sales and lease ownership division was
attributable to new stores opened since the end of the second quarter last year
(298 Company-operated sales and lease ownership stores open at the end of the
second quarter of 2001 compared to 232 at the end of the second quarter of 2000)
and an average increase of 11.6% in comparable same store revenues for the first
six months of 2001. The decrease in rental revenues in the rent-to-rent
operations was attributable to the reduction in stores
9
open (91 rent-to-rent stores open at the end of the second quarter of 2001
compared to 99 at the end of the second quarter of 2000) and an average decrease
of 4.9% in comparable same store revenues for the first six months of 2001.
Revenues from retail sales increased slightly $195,000 (0.6%) to $32.0 million
for the first six months of 2001 compared to $31.8 million for the same period
last year. This slight increase was primarily due to $1.6 million increase in
rental return merchandise and new sales in the sales and lease ownership
division partially offset by a $1.4 million decrease in sales of rental return
merchandise and new sales in the Company's rent-to-rent operation. Non-retail
sales, which primarily represent merchandise sold to Aaron's Sales and Lease
Ownership franchisees, increased $218,000 (0.7%) to $31.4 million compared to
$31.2 million for the same period last year. The increased sales are due to the
growth of the franchise operations.
Other revenues for the first six months of 2001 increased $651,000 (8.7%) to
$8.1 million compared to $7.5 million in 2000. This increase was attributable to
fees and royalties from franchise operations increasing $1.1 million (17.9%) to
$6.9 million compared to $5.9 million last year, reflecting a net increase of 28
franchised stores since the end of the second quarter of 2000 and increasing
operating revenues of maturing franchise stores.
Cost of sales from retail sales increased $783,000 (3.5%) to $23.2 million for
the first six months of 2001 compared to $22.4 million for the same period last
year. Cost of sales as a percentage of retail sales increased to 72.5% in 2001
compared to 70.4% last year. Cost of sales from non-retail sales increased
$597,000 (2.1%) to $29.5 million from $28.9 million, and as a percentage of
non-retail sales, increased to 93.8% from 92.6%.
Operating expenses increased $20.3 million (18.1%) to $132.3 million from $112.0
million. As a percentage of total revenues, operating expenses were 48.2% in
2001 and 45.3% in 2000. Operating expenses increased as a percentage of total
revenues between periods primarily due to costs associated with the acquisition
of store locations formerly operated by one of the nation's largest furniture
retailers along with other new store openings.
Depreciation of rental merchandise increased $7.6 million (13.0%) to $66.1
million, from $58.5 million, and as a percentage of total rentals and fees,
decreased to 32.6% from 33.1%. The decrease as a percentage of revenues is
primarily due to the higher margins in the Aaron's Sales and Lease Ownership
division.
Interest expense increased $788,000 (31.0%) to $3.3 million compared to $2.5
million. As a percentage of total revenues, interest expense was 1.2% in 2001
compared to 1.0% in 2000. The increase in interest expense as a percentage of
total revenues was due to higher debt levels in the first six months of 2001.
Income tax expense decreased $1.2 million (13.9%) to $7.5 million for 2001
compared to $8.7 million for the same period in 2000. The Company's effective
tax rate was 37.9% for the first six months of 2001 compared to 38.0% in 2000.
As a result, net earnings decreased $1.9 million (13.5%) to $12.3 million in the
first six months of 2001 compared to $14.2 million for the same period in 2000.
As a percentage of total revenues,
10
net earnings were 4.5% in the current period as compared to 5.7% for the same
period last year. The decrease was attributable to the significant revenue
decline in the Company's rent-to-rent division as well as start up costs
associated with the accelerated store openings which negatively affected
earnings for the first six months of 2001.
The weighted average number of shares outstanding during the first six months of
2001 was 19,891,000 compared to 19,845,000 (20,110,000 versus 19,998,000
assuming dilution) for the same period last year.
LIQUIDITY AND CAPITAL RESOURCES:
During the first six months of 2001, the Company paid a semi-annual dividend
that was declared on November 9, 2000 of $.02 per share on both Common Stock and
Class A Common Stock. On May 1, 2001, the Company declared a semi-annual
dividend payable on July 6, 2001 of $.02 per share on both Common Stock and
Class A Common Stock.
Cash flow from operations for the first six months ended June 30, 2001 and 2000
was $80.7 million and $75.3 million, respectively. Such cash flows include
profits on the sale of rental return merchandise. The Company's primary capital
requirements consist of acquiring rental merchandise for both rent-to-rent
stores and Company-operated Aaron's Sales and Lease Ownership stores. As the
Company continues to grow, the need for additional rental merchandise will
continue to be the Company's major capital requirement. These capital
requirements historically have been financed through a revolving credit
agreement, cash flow from operations, trade credit, proceeds from the sale of
rental return merchandise, and stock offerings. On March 30, 2001 the Company
entered into a new $110 million revolving credit agreement that includes an $8.0
million credit line to fund daily working capital requirements. At June 30,
2001, an aggregate of $94.0 million was outstanding under this facility, bearing
interest at an average rate of 5.8%. The Company uses interest rate swap
agreements as part of its overall long-term financing program. At June 30, 2001,
the Company had swap agreements with notional principal amounts of $60.0 million
which effectively fixed the interest rates on an equal amount under the
Company's revolving credit agreement at 7.2%.
The Company has issued $4,200,000 of industrial development corporation revenue
bonds issued in the fourth quarter of 2000 to finance the purchase of a
manufacturing facility. The borrowing rate on these bonds at June 30, 2001 was
2.85%. No principal payments are due on the bonds until maturity in 2015.
The Company believes that the expected cash flows from operations, proceeds from
the sale of rental return merchandise, bank borrowings and vendor credit, will
be sufficient to fund the Company's capital and liquidity needs for the
foreseeable future.
RECENTLY ISSUED ACCOUNTING STANDARDS
In June 2001, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standard No. 142, "Goodwill and Other Intangible Assets",
effective for fiscal years beginning after December 15, 2001. Under the new
rules, goodwill and intangible assets deemed to have indefinite lives will no
longer be amortized but will be subject to annual impairment tests in accordance
with the Statement. Other intangible assets will continue to be amortized over
their useful lives.
11
The Company will apply the new rules on accounting for goodwill and other
intangible assets beginning in the first quarter of 2002. During 2002, the
Company will apply the non-amortization provisions and perform the first of the
required impairment tests of goodwill and indefinite lived intangible assets as
of January 1, 2002. The Company has not yet determined what effect the statement
will have on the earnings and financial position of the Company.
12
PART II - OTHER INFORMATION
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Annual Meeting of Shareholders was held on May 1, 2001 in Atlanta ,
Georgia, at which the following matters were submitted to a vote of the
shareholders:
Votes cast for or withheld regarding the election of ten (10) Directors
for a term of one (1) year were as follows:
Name of Nominee For Withheld
- --------------- -----------------------------
R.C. Loudermilk, Sr. 3,442,180 331,220
Robert C. Loudermilk, Jr. 3,442,185 331,215
Gilbert L. Danielson 3,442,185 331,215
Ronald W. Allen 3,726,485 46,915
Leo Benatar 3,726,485 46,915
Earl Dolive 3,726,485 46,915
J. Rex Fuqua 3,440,105 333,295
Ingrid Saunders Jones 3,726,485 46,915
M. Collier Ross 3,726,485 46,915
William K. Butler, Jr. 3,726,485 46,915
Votes cast for, against or abstained regarding the approval of the 2001
Stock Option and Incentive Plan were as follows:
Voting For 3,409,300
Voting Against 363,500
Abstain From Voting 600
-----------
Total 3,773,400
===========
Votes cast for, against or abstained regarding the approval of the
Stock Option Grants were as follows:
Voting For 3,459,780
Voting Against 313,020
Abstain From Voting 600
------------
Total 3,773,400
============
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K:
(b) No reports on Form 8-K were filed by the Registrant during the quarter
ended June 30, 2001.
13
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of l934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
AARON RENTS, INC.
(Registrant)
Date - August 14, 2001 /s/ Gilbert L. Danielson
------------------------
Gilbert L. Danielson
Executive Vice President
Chief Financial Officer
Date - August 14, 2001
/s/ Robert P. Sinclair, Jr.
---------------------------
Robert P. Sinclair, Jr.
Vice President
Corporate Controller