New User:

-or-
Username:
Password:
Forgot your password?

Stock Market & Financial Investment News

News Breaks
February 7, 2014
09:51 EDTAAN, RCII, CONNAaron's jumps following buyout offer despite weak outlook
Shares of Aaron's (AAN), which offers consumer electronics, computers, furniture, and household appliances to customers via leases and lease-to-own arrangements, are surging despite the company's weak quarterly results and gloomy outlook after a shareholder made a $30.50 per share takeover offer. WHAT'S NEW: This morning, Vintage Capital, which holds about a 9.5% stake in Aaron's, disclosed that it sent a letter to the company's board containing a non-binding proposal to acquire the company for $30.50 per share of common stock. In its letter, the investor wrote that on three separate occasions since 2011, Vintage privately submitted "bona fide offers" to acquire 100% of the outstanding common stock of Aaronís at "significant premiums" to the then-current market prices. "Each of our offers was summarily ignored by the Board of Directors at the expense of your unknowing stockholders," Vintage stated, adding that it is the firm's "strong belief that Aaronís is at a crossroads that will culminate with a sale of the company." WHAT'S NOTABLE: Aaron's reported fourth quarter adjusted earnings per share of 30c, which fell within the company's lowered guidance of 27c-31c that it had issued in January. Aaron's also reported that is same-store sales in the quarter fell 0.9% and that its customer count grew 'only slightly' in 2013. For the fourth quarter, revenues decreased 2% to $553.9 million and the company said it will take several quarters of increasing the customer base to significantly grow revenue and earnings. Aaron's CEO Ronald Allen stated that 2013 was "a year of challenges and change" for the company, adding that growing revenues and adding customers has been "difficult with the ongoing economic pressures on low to middle income consumers." Aaron's guided to an earnings range for the new year that also fell below the consensus estimate at its midpoint. PRICE ACTION: In early morning trading, Aaron's jumped more than 16% to trade at $31.50, which is $1.00 above the offer made by Vintage Capital. OTHERS TO WATCH: Other retailers competing with Aaron's include Rent-A-Center (RCII) and Connís (CONN), both of which are lower on the session.
News For AAN;RCII;CONN From The Last 14 Days
Check below for free stories on AAN;RCII;CONN the last two weeks.
Sign up for a free trial to see the rest of the stories you've been missing.
August 21, 2014
08:31 EDTAANAaron's appoints Gilbert Danielson interim CEO
Subscribe for More Information
August 14, 2014
17:00 EDTCONNGreenlight Capital gives quarterly update on stakes
Subscribe for More Information

Sign up for a free trial to see the rest of the stories you've been missing.

I agree to the theflyonthewall.com disclaimer & terms of use