Aaron's adds customers in 2011

By Arielle Kass

The Atlanta Journal-Constitution

Aaron's added customers in 2011 as a difficult economy led more people to the Atlanta-based rent-to-own furniture company for televisions and couches.

In 2011, the company's customer base was up nearly 11 percent. Aaron's executive vice president and CFO Gilbert Danielson said he could not draw any conclusions about the state of the economy from the increase, but Aaron's customers tend to live week-to-week or month-to-month.

"Customers have been stressed," Danielson said. "Face it, the economy's tough out there."

Gilford Securities senior analyst Rob Straus said Aaron's has consistently been able to expand its customer base, and thinks the company is well-positioned to continue its growth.

He said owners of the company's franchise stores have begun to follow Aaron's lead in expanding the terms of some rental agreements, letting customers pay less over a longer period of time. That, he said, gives customers more options in a tough economic environment.

Aaron's made $113.8 million in 2011, a 3.9 percent decrease from the $118.4 million it made in 2010. Fourth-quarter profits were down slightly in 2011, to $30.5 million from $30.8 million in 2010.

The company's bottom line was affected by a $36.5 million second-quarter lawsuit payout. Last month, a court ruled the figure would not be sustained, though it did not say if there would be a new trial or if the payment would be reduced. Charges related to the departure of CEO Robin Loudermilk late last year also affected earnings.

The company's board still has not decided whether to offer interim CEO Ronald Allen the permanent position, but in a company conference call, the former Delta Air Lines chief executive said he would "certainly be happy" to stay in the role.

Danielson said he expects the decision on the company's next leader to come within a month.