<PAGE>
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, 1995 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 EAST 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 12, 1995
------------------- ------------------------
Class A Common Stock, $.50 Par Value 4,018,263
Class B Common Stock, $.50 Par Value 5,703,730
<PAGE>
PART 1 - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
AARON RENTS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
(unaudited)
June 30, March 31,
1995 1995
----------- -----------
(in thousands)
<S> <C> <C>
ASSETS:
Cash $ 91 $ 95
Accounts Receivable 8,600 8,391
Rental Merchandise 173,891 172,741
Less: Accumulated Depreciation (52,494) (51,385)
---------- ----------
121,397 121,356
Property, Plant and Equipment, Net 24,051 24,181
Prepaid Expenses and Other Assets 3,224 3,504
---------- ----------
Total Assets $ 157,363 $ 157,527
============ ===========
LIABILITIES AND SHAREHOLDERS' EQUITY:
Accounts Payable and Accrued Expenses $ 18,872 $ 19,062
Dividends Payable 367
Current Income Taxes Payable 1,545
Deferred Income Taxes Payable 3,903 4,126
Customer Deposits and Advance Payments 6,292 6,229
Bank Debt 39,445 42,172
Other Debt 658 987
---------- ----------
71,082 72,576
Shareholders' Equity:
Common Stock, Class A, Par Value $.50 Per
Share-Authorized 25,000,000 shares:
5,361,761 Shares Issued 2,681 2,681
Common Stock, Class B, Par Value $.50 Per
Share-Authorized 25,000,000 shares:
6,636,761 Shares Issued 3,318 3,318
Additional Paid in Capital 15,314 15,314
Retained Earnings 80,165 77,216
----------- ----------
101,478 98,529
Less Treasury Shares at Cost,
Class A Common Stock, 1,344,498 Shares
at June 30, 1995 and 1,234,748
Shares at March 31, 1995 (9,943) (8,324)
Class B Common Stock, 944,031 Shares
at June 30, 1995 and 944,031 Shares at
March 31, 1995 (5,254) (5,254)
----------- ----------
86,281 84,951
----------- ----------
Total Liabilities and
Shareholders' Equity $ 157,363 $ 157,527
=========== ============
</TABLE>
See Notes to Consolidated Financial Statements
<PAGE>
AARON RENTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
-------------------------
June 30,
-------------------------
1995 1994
----------- -----------
(in thousands,
except per share amounts)
<S> <C> <C>
REVENUES:
Rentals and Fees $45,690 $41,708
Sales 12,858 13,459
Other 587 428
------- -------
59,135 55,595
------- -------
COSTS AND EXPENSES:
Cost of Sales 9,114 9,692
Operating Expenses 30,025 28,230
Depreciation
of Rental Merchandise 13,899 12,720
Interest 750 680
------- -------
53,788 51,322
------- -------
EARNINGS BEFORE TAXES 5,347 4,273
INCOME TAXES 2,032 1,666
------- -------
NET EARNINGS $ 3,315 $ 2,607
======= =======
EARNINGS PER SHARE $ .33 $ .27
======= =======
WEIGHTED AVERAGE
SHARES OUTSTANDING 10,037 9,603
======= =======
</TABLE>
3
<PAGE>
AARON RENTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
June 30,
1995 1994
----------- ----------
(in thousands)
<S> <C> <C>
OPERATING ACTIVITIES:
Net Income $ 3,315 $ 2,607
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation and amortization 15,356 13,889
Decrease in deferred taxes (223) (315)
Decrease in accounts payable
and accrued expenses (190) (613)
Increase in accounts receivable (209) (472)
Other changes, net 1,889 879
-------- -------
Cash provided by operations 19,938 15,975
-------- -------
INVESTING ACTIVITIES:
Additions to property, plant and equipment (2,793) (2,493)
Book value of property retired or sold 1,467 149
Additions to rental merchandise (23,760) (31,569)
Book value of rental merchandise sold 9,819 9,973
-------- -------
Cash used by investing activities (15,267) (23,940)
-------- -------
FINANCING ACTIVITIES:
Proceeds from Revolving Credit Agreement 19,644 65,625
Repayments on Revolving Credit Agreement (22,371) (71,489)
Decrease in other debt (329) (364)
Acquisition of treasury stock (1,619)
Sale of common stock 14,140
Issuance of stock under stock option plan 54
-------- -------
Cash (used) provided by financing activities (4,675) 7,966
-------- -------
(DECREASE) INCREASE IN CASH (4) 1
Cash at Beginning of Period 95 86
-------- -------
Cash at End of Period $ 91 $ 87
======== =======
</TABLE>
See Notes to Consolidated Financial Statements
<PAGE>
AARON RENTS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
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.
Interim Financial Statement:
-------------------------------
The Consolidated Balance Sheet as of June 30, 1995, and the
Consolidated Statements of Earnings and Cash Flows for the three months ended
June 30, 1995 and 1994, 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, 1995 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 March 31, 1995. The
results of operations for the period ended June 30, 1995, are not necessarily
indicative of the operating results for the full year.
5
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS:
-------------------------
FIRST QUARTER OF FISCAL YEAR 1996 COMPARED TO FIRST QUARTER OF FISCAL YEAR
1995:
Total revenues for the first quarter of fiscal year 1996 increased $3.5
million (6.4%) to $59.1 million from $55.6 million for the same period a year
ago. This increase was due to a $4.0 million (9.5%) increase in rentals and
fees revenues. Of this increase in rental revenues, $4.9 million was
attributable to Aaron's Rental Purchase stores in which rental revenues
increased 30% to $21.5 million in the first quarter of fiscal year 1996 compared
to $16.6 million for the same quarter a year ago.
Revenues from sales declined $601,000 (4.5%) to $12.9 million from $13.5
million a year ago. This decrease is due to a lower amount of sales of new
furniture in the current fiscal year.
Other revenues in the first quarter increased $159,000 (37.1%) to $587,000
compared to $428,000 a year ago. Included in other revenues is franchise and
royalty fee income from franchised operations. Franchise and royalty fee income
for the current quarter was $345,000 compared to $168,000 for the same period a
year ago.
Cost of sales decreased $578,000 million (6.0%) to $9.1 million compared to
$9.7 million for the first quarter last year, and as a percentage of sales
decreased to 70.9% from 72.0%. The improvement in gross margins is primarily
due to improved margins on the sale of rental return furniture.
Operating expenses increased $1.8 million (6.4%) to $30.0 million from
$28.2 million. As a percentage of total revenues, operating expenses were 50.8%
in both years.
Depreciation of rental merchandise increased $1.2 million (9.3%) to $13.9
million from $12.7 million last year, and as a percentage of total rentals and
fees was 30.4% in the current quarter compared to 30.5% for the same quarter a
year ago.
Interest expense increased $70,000 (10.3%) to $750,000 in the first quarter
of fiscal year 1996 compared to $680,000 for the same quarter last year. The
increase in interest expense was primarily due to increased borrowing rates in
the current quarter.
Income tax expense increased $366,000 (22.0%) to $2.0 million compared to
$1.7 million a year ago, and the Company's effective tax rate was 38.0% for the
first quarter of the current year compared to 39.0% in the previous year's
quarter. The decrease in the effective tax rate is due to lower amounts
provided for permanent differences.
As a result, net earnings increased $708,000 (27.2%) to $3.3 million in the
first quarter of fiscal year 1996 compared to $2.6 million a year ago. As a
percentage of total revenues, net earnings were 5.6% in the first quarter
compared to 4.7% a year ago.
The weighted average number of shares outstanding during the first quarter
of fiscal year 1996 was 10,037,000 compared to 9,603,000 for the same period
last year. The increase in the number of shares is due to the issuance of
1,275,000 shares of Class B Common Stock on May 2, 1994.
6
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES:
--------------------------------
On May 2, 1994, the Company issued through a public offering 1,275,000
shares of Class B Common Stock. The net proceeds to the Company after deducting
underwriting discounts and offering expenses were $14.1 million. The net
proceeds were used to reduce bank debt.
During the first quarter of fiscal year 1996, the Company declared a semi-
annual dividend payable on July 6, 1995 of $.02 per share on Class A Common
Stock and $.05 per share on Class B Common Stock.
Management believes its expected cash flow from operations, proceeds from
the sale of rental return merchandise, bank borrowings, and vendor credit are
adequate to supply short-term capital needs, and that it has the ability to
obtain additional long-term capital if needed.
7
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K:
(a) The following exhibits are furnished herewith:
Exhibit
Number Description of Exhibit
------ ----------------------
10(b) Letter agreements dated June 19, 1995, between
First Union National Bank of North Carolina and
the Company and June 20, 1995, between Trust
Company Bank and the Company regarding an
Interest Rate Swap Transaction
11 Computation of Earnings Per Share
27 Financial Data Schedule
(b) No reports on Form 8-K were filed by the Registrant during the
three months ended June 30, 1995.
<PAGE>
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 11, 1995 /s/ GILBERT L. DANIELSON
--------------- --------------------
Gilbert L. Danielson
Vice President, Finance
Chief Financial Officer
Date - August 11 , 1995 /s/ ROBERT P. SINCLAIR, JR.
---------------- -----------------------
Robert P. Sinclair, Jr.
Controller
9
<PAGE>
[FIRST UNION LETTERHEAD]
EXHIBIT 10(B)
SWAP TRANSACTION
DATE: June 19, 1995
TO: Gilbert L. Danielson
Aaron Rents Inc.
1100 Aaron Building
3001 N. Fulton Drive NE
Atlanta, GA
Phone: (404) 231-0011
Fax: (404) 240-6584
FROM: First Union National Bank of North Carolina
SUBJECT: Interest Rate Swap
REF. NO. 10413/11295
--------------------------------------------------------------------------------
Dear Mr. Danielson:
The purpose of this letter agreement is to confirm the terms and
conditions of the transaction entered into between Aaron Rents Inc.
("Counterparty") and First Union National Bank of North Carolina ("First Union")
on the Trade Date specified below (the "Transaction"). This letter agreement
constitutes a "Confirmation" as referred to in the Master Agreement specified
below.
1. The definitions and provisions contained in the 1991 ISDA Definitions
(as published by the International Swap and Derivatives Association, Inc.) (the
"Definitions"), are incorporated into this Confirmation. In the event of any
inconsistency between those definitions and provisions and this Confirmation,
this Confirmation will govern.
If you and we are parties to a Master Agreement that sets forth the
general terms and conditions applicable to Swap Transactions between us (a "Swap
Agreement"), this Confirmation supplements, forms a part of, and is subject to,
such Swap Agreement. If you and we are not yet parties to a Swap Agreement, this
Confirmation will supplement, form a part of, and be subject to, a Swap
Agreement upon its execution by you and us. All provisions contained or
incorporated by reference in such Swap Agreement shall govern this Confirmation
except as expressly modified below. In addition, if a Swap Agreement has not
been executed, this Confirmation will itself evidence a complete binding
agreement between you and us as to the terms and conditions of the Swap
Transaction to which this Confirmation relates.
<PAGE>
Each party is hereby advised, and each such party acknowledges, that the
other party has engaged in (or refrained from engaging in) substantial financial
transactions and has taken other material actions in reliance upon the parties'
entry into the Swap Transaction to which this Confirmation relates on the terms
and conditions set forth below.
If on any Calculation Date (or if, for any Calculation period, as
applicable), (a) the product of the Fixed Rate and the Fixed Rate Day Count
Fraction exceeds the product of the Floating Rate (plus or minus the Spread, if
applicable) and the Floating Rate Day Count Fraction, the Fixed Rate Payer shall
pay the Floating Rate Payer, on the relevant Payment Date, an amount equal to
such excess multiplied by the Notional amount, (b) the product of the Floating
Rate (plus or minus the spread if applicable) and the Floating Rate Day Count
Fraction exceeds the product of the Fixed Rate and the Fixed Rate Day Count
Fraction, the Floating Rate Payer shall pay the Fixed Rate Payer, on the
relevant Payment Date, an amount equal to such excess multiplied by the Notional
Amount, or (c) the product of the Fixed Rate and the Fixed Rate Day Count
Fraction is equal to the product of the Floating Rate (plus or minus the Spread,
if applicable) and the Fixed Rate Day Count Fraction, no amount shall be due by
either side on the relevant Payment Date. Each party's obligation to make
payment of any amount which would otherwise by due hereunder on a Payment Date
shall be automatically satisfied and discharged by payment of the net amount due
on such Payment Date, determined by the foregoing manner.
This Confirmation will be governed by and construed in accordance with
the laws of the State of New York, without reference to choice of law doctrine,
provided that this provision will be superseded by any choice of law provisions
contained in the Swap Agreement.
2. The terms of the particular Transaction to which this Confirmation
relates are as follows:
Transaction Type: Interest Rate Swap
Trade Date: June 16, 1995
Effective Date: June 23, 1995
Termination Date: June 23, 2005, subject to
adjustment in accordance with
the Modified Following Business
Day Convention
Notional Amount: $10,000,000.00
Fixed Amounts:
Fixed Rate Payer: Counterparty
Fixed Rate Payer Quarterly on the 23rd day of
Payment Dates: each June, September, December,
and March commencing September
23, 1995, through and including
the Termination Date, subject
to the Modified Following
Business Day Convention.
2
<PAGE>
Fixed Rate: 6.35%
Fixed Rate Day ACT/360
Count Fraction:
Floating Amounts:
Floating Rate Payer: First Union
Floating Rate Payer Quarterly on the 23th day of
Payment Dates: each June, September, December,
and March commencing September
23, 1995, through and including
the Termination Date, subject
to the Modified Following
Business Day Convention.
Floating Rate Option: USD-LIBOR-BBA
Designated Maturity: 3 Month
Spread: None
Floating Rate Day ACT/360
Count Fraction:
Reset Dates: Quarterly on the 23th day of
each September, December, March,
and June commencing June 23,
1995, through and including
March 23, 2005, subject to the
Modified Following Business Day
Convention.
Compounding: Inapplicable
Calculation Agent: First Union
Business Days: New York
Payments to First Union: First Union Charlotte
Capital Markets
Attention: Derivatives Desk
Fed. ABA No. 053000219
Ref. No.: 10413/11295
First Union Settlements: Brian Hall
Derivatives Desk
Ph. No.: 704-383-1185
Fax No.: 704-383-9139
3
<PAGE>
Payments to Counterparty: Please forward instructions to FUNB-NC.
No payments will be made prior to
receipt of Counterparty's payment
instructions.
First Union Address: One First Union Center
301 South College Street TW-9
Charlotte, NC 28288-0601
Please confirm that the foregoing correctly sets forth the terms of our
agreement by executing a copy of this Confirmation enclosed for that purpose and
returning it to us.
Very truly yours,
FIRST UNION NATIONAL BANK
OF NORTH CAROLINA
By: /s/ Joseph M. Nenichka
------------------------
Name: Joseph M. Nenichka
Title: Vice President
Date:
-----------------
By: /s/ David Kitchen
------------------------
Name: David Kitchen
Title: Vice President
Date:
-----------------
Accepted and confirmed as of
the date first above written:
AARON RENTS INC.
By: /s/ Gilbert L. Danielson
---------------------------
Name: Gilbert L. Danielson
-------------------------
Title: Vice President, Finance
-------------------------
Date: July 17, 1995
-------------------------
4
<PAGE>
[TRUST COMPANY BANK LETTERHEAD]
June 20, 1995
CONFIRMATION OF INTEREST RATE SWAP TRANSACTION
Mr. Gilbert L. Danielson
Vice President - Finance
Aaron Rents, Inc.
309 East Paces Ferry Road, N.E.
Atlanta, GA 30305
Dear Mr. Danielson:
The purpose of this letter agreement is to set forth the terms and
conditions of the Rate Swap Transaction entered into between you and Trust
Company Bank on the Trade Date specified below (the "Transaction" or "Rate Swap
Transaction"). This letter agreement constitutes a "Confirmation" as referred to
in either the ISDA Master Agreement or the Interest Rate and Currency Exchange
Agreement entered into by the parties hereto, prior to, or on the date hereof.
The definitions and provisions contained in the 1991 ISDA Definitions
(the "Definitions") published by the International Swap Dealers Association,
Inc. ("ISDA") are incorporated by reference into this Confirmation. In the event
of any inconsistency between the Definitions and this Confirmation, this
Confirmation will govern.
1. This Confirmation supplements, forms a part of, and is subject to
either the ISDA Master Agreement or the Interest Rate and Currency Exchange
Agreement (a "SWAP Agreement"), as amended and supplemented from time to time,
between you and Trust Company Bank. All provisions contained or incorporated by
reference in the Swap Agreement shall govern this Confirmation except as
expressly modified below. In the event that you and Trust Company Bank have not
entered into s Swap Agreement, this Transaction is subject to the 1992 Master
Agreement. Prior to the execution and delivery of such Swap Agreement, this
Confirmation alone shall constitute a complete and binding agreement with
respect to the Transaction.
Each party is hereby advised, and each such party acknowledges, that the
other party has engaged in (or refrained from engaging in) substantial financial
transactions and has taken other material actions in reliance upon the parties'
entry in the Rate Swap Transaction to which this Confirmation relates on the
terms and conditions set forth below.
This Confirmation will be governed by and construed in accordance with
the laws of the State of Georgia applicable to contracts made and wholly
performed within the State of Georgia.
2. The terms of the particular Rate Swap Transaction to which this
Confirmation relates are as follows:
Type of Transaction: Rate Swap
Notional Amount: US$10,000,000.00
Trade Date: June 16, 1995
Effective Date: June 23, 1995
Termination Date: June 23, 2005 subject to
adjustment in accordance with
the Modified Following Business
Day Convention
<PAGE>
PAGE 2
Fixed Amounts:
-------------
Fixed Rate Payer: Aaron Rents, Inc.
Fixed Rate Payer Payment Dates: The 23rd day of each March,
June, September and December,
beginning September 23, 1995
and terminating on the
Termination Date, subject to
adjustment in accordance with
the Modified Following Business
Day Convention.
Fixed Rate: 6.3500% per annum
Fixed Rate Day Count Fraction: A/360
Floating Amounts:
----------------
Floating Rate Payer: Trust Company Bank
Floating Rate Payer Payment Dates: The 23rd day of each March,
June, September and December,
beginning September 23, 1995
and terminating on the
Termination Date, subject to
adjustment in accordance with
the Modified Following Business
Day Convention.
Floating Rate Option: USD-LIBOR-BBA
Floating Rate for initial
Calculation Period: 6.06250%
Designated Maturity: Three months
Spread: Inapplicable
Compounding: Inapplicable
Floating Rate Day Count Fraction: Actual/360
Reset Dates: The first day of each
Calculation Period
Calculation Agent: Trust Company Bank
Business Days: New York and London
<PAGE>
PAGE 3
3. Other Provisions:
(i) "USD-LIBOR" means that the rate for a Reset Date will be the rate
for deposits in Dollars for a period of the Designated Maturity which
appears on the Telerate Page 3750 as of 11:00 a.m., London time, on two
business days prior to the Reset Date. If such rate does not appear on
the Telerate Page 3750, the rate for that Reset Date will be determined
as if the parties had specified "LIBOR (Reference Banks)" as the
applicable Floating Rate Option.
(ii) "Telerate Page 3750" means the displays designated as "Page 3750"
on the Telerate Service (or such other page as may replace Page 3750 on
that service or such other service as may be nominated by the British
Bankers' Association as the information vendor for the purpose of
displaying British Banker's Association Interest Settlement Rate for
Dollar deposits.)
4. Account Details:
Payments to Fixed Rate Payer:
[PLEASE ADVISE]
Account No.:
Depository:
Address:
Favor of:
Payments to Floating Rate Payer:
Trust Company Bank
ABA# 061000104
Bond Wire Clearing, Center 095
Attn: Judy Keane-Dawes
5. Offices
(a) The Office of Fixed Rate Payer for the Rate Swap Transactions is
its Georgia office; and
(b) The Office of Floating Rate Payer for the Rate Swap Transaction is
its Georgia Office.
<PAGE>
PAGE 4
Please confirm that the foregoing correctly sets forth the terms of our
agreement by executing this copy of this Confirmation and sending the same to
us by overnight mail to SunTrust Capital Markets, 25 Park Place, 4th Floor,
Atlanta, GA 30303 to the attention of Mark Brown or Mark Lutostansky.
By signing below, you also acknowledge and agree that we have explained to you
the risks involved in this Rate Swap Transaction, which risks include but are
not limited to the following:
. Marked Risk: the risk that the Rate Swap Transaction will decline in
value with a change in, among other things, interest rates or the yield
curve; and
. Liquidity Risk: the risk that the Rate Swap Transaction cannot be closed
out or disposed of quickly at or near its value.
You further acknowledge and agree that you understand these risks and the Rate
Swap Transaction as a whole, that you are capable of managing the risks
associated with this Rate Swap Transaction, that the risks involved in this Rate
Swap Transaction are consistent with your financial goals, policies and
procedures, and risk tolerance, and that you have determined that this Rate Swap
Transaction is appropriate for you.
Very truly yours,
TRUST COMPANY BANK
By: /s/ Wadley Duckworth
---------------------------
Name: Wadley Duckworth
Title:
By: /s/ Martha A. Suggs
----------------------------
Name: Martha A. Suggs
Title: Assistant Vice President
Accepted and Confirmed as
of the Date First Written:
AARON RENTS, INC.
By: /s/ Gilbert L. Danielson
---------------------------
Name: Gilbert L. Danielson
Title: Vice President, Finance
By:
----------------------------
Name:
Title:
<PAGE>
EXHIBIT 11
COMPUTATION OF EARNINGS PER SHARE
<TABLE>
<CAPTION>
Three Months Ended
-------------------------------------
June 30
-------------------------------------
1995 1994
----------------- ------------------
(in thousands, except per share data)
<S> <C> <C>
Primary:
Net Income $ 3,315 $ 2,607
------- -------
Weighted average number
common shares outstanding 9,785 9,283
Add:
Dilutive effect of outstanding options,
as determined by the application
of the treasury stock method using
the average market price of the Company's
common stock 252 320
------- -------
Weighted average number of common
and common equivalent shares 10,037 9,603
------- -------
Primary earnings per share $ .33 $ .27
------- -------
Fully diluted:
Weighted average number of common
and common equivalent shares 10,037 9,603
Add:
Additional dilutive effect of outstanding
options, as determined by the application
of the treasury stock method using the
quarter end market price of the Company's
common stock 12 0
------- -------
Weighted average number of common
shares fully diluted 10,049 9,603
------- -------
Fully diluted earnings per share $ .33* $ .27*
------- -------
</TABLE>
*Not presented in Financial Statements since dilutive effect is less than 3%.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-START> APR-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 91
<SECURITIES> 0
<RECEIVABLES> 8,600
<ALLOWANCES> 0<F1>
<INVENTORY> 121,397<F2>
<CURRENT-ASSETS> 0<F3>
<PP&E> 24,051
<DEPRECIATION> 0<F1><F3>
<TOTAL-ASSETS> 157,363
<CURRENT-LIABILITIES> 0<F3>
<BONDS> 0
<COMMON> 5,999
0
0
<OTHER-SE> 80,282
<TOTAL-LIABILITY-AND-EQUITY> 157,363
<SALES> 12,858
<TOTAL-REVENUES> 59,135
<CGS> 9,114
<TOTAL-COSTS> 53,038
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 750
<INCOME-PRETAX> 5,347
<INCOME-TAX> 2,032
<INCOME-CONTINUING> 3,315
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,315
<EPS-PRIMARY> .33
<EPS-DILUTED> .33
<FN>
<F1> The allowance for doubtful accounts is netted against total accounts
receivable in the Accounts Receivable balance.
<F2> Rental merchandise has been classified as inventory for purposes of this
schedule. Rental merchandise has been shown net of 52,494 accumulated
depreciation.
<F3> The financial statements are presented with an unclassified balance sheet.
<F4> PP&E has been shown net of accumulated depreciation.
</FN>
</TABLE>
