Aaron Rents was selected as the name for Charlie Loudermilk's Atlanta-based company not because the moniker means anything to him; it's not his father's name, or a compilation of his kids' initials, or the name of his favorite movie star.

Nothing fancy like that.

Joey Ivansco/Staff (ENLARGE)

Charlie Loudermilk, founder of Aaron Rents: 'Our goal is 3,000 more stores. We can get there.'

AT A GLANCE • Clickable ticker: RNT • Headquarters: Atlanta • CEO: R. Charles Loudermilk Sr. • Employees: 7,881 • Business: Offers electronics, furniture and other goods for rent and rent-to-own • Online: aaronrents.com REVENUE • 2005: $1.1 billion • 2004: $946 million • 2003: $767 million • 2002: $640 million • 2001: $546 million NET INCOME • 2005: $57.9 million • 2004: $52.6 million • 2003: $36.4 million • 2002: $27.4 million • 2001: $12.3 million NET INCOME PER SHARE • 2005: $1.14 • 2004: $1.04 • 2003: 73 cents • 2002: 57 cents • 2001: 27 cents WANT REPRINTS? Our provider can reformat articles, with accompanying photos and graphics. Get more information on custom reprints — and custom plaques.

Loudermilk picked the name back in 1955 simply because it started with two A's and therefore could conceivably top the list of rent-to-own businesses listed alphabetically in the Yellow Pages.

This straightforward, no-frills approach to marketing and management remains today, and is a big reason Aaron Rents experienced strong growth in its 50th year. Through acquisition and new development, the company increased its total store count to nearly 1,200 in 2005. Revenue rose 19 percent to $1.13 billion as a greater swath of consumers sought to rent aspirational goods like flat-screen televisions.

These leaps and bounds occurred despite the pressure of gas prices, the hurricanes that affected 11 percent of the stores, and the fairly strong economy — a fiscal condition you'd think might hurt a company that rents televisions and furniture to folks when times are tight.

But don't accuse Loudermilk of preying on the poor. He'll tell you his company's net income rose 10 percent to $58 million in 2005 and same-store sales rose 8.3 percent because Aaron Rents "gets the necessities of life to people" at reasonable rates and with no pickup charges or security deposits.

"It's a very legitimate business. We're a very legitimate credit retailer," he said.

"We can be next to every Wal-Mart in the country. It's just a matter of time."

That's big talk for what began as a very small operation. After graduating from the University of North Carolina at Chapel Hill, then working as a pharmaceutical salesman and helping his mother open a restaurant in Atlanta, Loudermilk started the rental business. His first order: 300 chairs for an estate sale in Buckhead. He took the job, agreeing to a rental fee of 10 cents a chair per day, despite not having any chairs to loan out. With $500 borrowed from a bank and another $500 from a business partner, he rented a truck, bought the chairs at an Army surplus store, then delivered and set them up under the midsummer sun.

The friend soon sold his share back, but Loudermilk soldiered on, "undaunted by the work or heat and determined to make his dream a reality," according to Aaron Rents' 2005 annual report.

Loudermilk built a chain of rental stores, adding furniture manufacturing capabilities with an acquisition in 1971, and took the company public in 1982. Five years later, Aaron Rents' business model evolved to encompass not just the renting of goods, but rent-to-own. Loudermilk started franchising that concept in 1992, according to information service Hoover's.

Aaron Rents' franchises, not included in the revenue total for Aaron Rents, had a big year, rising 17 percent to $419.7 million, the company said. At the end of 2005, Aaron Rents had 392 franchised stores and 272 franchise contracts awarded for stores that are expected to open in the next three to four years. Franchise fees and royalties now contribute more than 20 percent of the company's earnings.

"It's working very, very well," Loudermilk said. "We're constantly looking for new products, seeing if customers want new products."

Branching out

In what Loudermilk says was a response to customer wants, the company launched RIMCO in 2005, a nine-store chain of superstar-worthy tire and rim rentals for consumers who want to trick out their cars with custom wheels. The aftermarket automotive market has grown to more than $30 billion in the last decade, attracting not just fans of MTV's "Pimp My Ride" but drivers young and old.

"The company is testing participation in this rapidly growing" market, according to the Aaron Rents' annual report.

To fund all this growth, the company is making a secondary offering of 4 million shares. Aaron Rents is selling 3 million and Loudermilk is selling 1 million, representing 18 percent of his total holdings.

Some of the proceeds will be used to help Loudermilk, who is now 78, diversify his portfolio. He's most interested in real estate these days, recently buying several properties along Peachtree Street in Buckhead in an attempt to turn the once-bustling bar district into a family-friendly, upscale shopping area.

But he says his heart, and much of his business focus, remains with Aaron Rents.

"Our goal is 3,000 more stores," Loudermilk said. "We can get there."