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Executives

Charles Loudermilk – Chairman, CEO

Robert Loudermilk – President, COO

Gilbert Danielson – Executive Vice President, CFO

Ken Butler – Director

Lee Wilder – Investor Relations

Analysts

John Baugh – Stifel Nicolaus & Company, Inc.

Laura Champine – Morgan, Keegan & Company, Inc.

Arvind Bhatia – Sterne, Agee & Leach

Joel Havard – Hilliard Lyons

Laura Richardson – BB&Y Capital Markets

Aaron Rents, Inc. (RNT) Q1 2008 Earnings Call April 23, 2008 10:30 AM ET

Operator

Good morning ladies and gentlemen and welcome to the Aaron Rent first quarter earning call. At this time all participants on a listen only mode. Later, we will conduct a question and answer session. Please note that this conference is being recorded.

I will now turn the call over to Mr. Gil Danielson. Mr. Danielson, you may begin.

Gil Danielson

Thank you for joining us this morning. I am going to turn the call over briefly to Lee Wilder, who does investor relation work for the Company and she will read our standard Safe Harbor Statement and she will turn the call over to Charlie. Charlie will have a few comments and then Ken and then me.

Lee Wilder

Good morning, the Company's earnings release issued yesterday and the related from 8K are available on the Aaron Bruce website www.aaronrents.com in the Investor Relations Section. This webcast will be archived for replay there as well.

With us today are Charlie Loudermilk, CEO, Robert Loudermilk, President, Ken Butler, President of Aaron Sales & Lease Ownership and Gil Danielson, Chief Financial Officer.

Before we discuss the results, I would like to read the Company's Safe Harbor Statement.

Except for the historical information and that is discussed today our forward looking statement of the Company, as such, they will involve a number of risks and uncertainties including factors such as changes in general economic conditions, competition, pricing, customer demands and other issues that could cause actual results to differ materially from such statements, including the risks and uncertainties discussed under risk factors in the Company's 2007 annual report on form 10K. Including without limitation the Company's projected revenues, earnings and store openings for future periods.

I will now turn the call over to Charlie Loudermilk.

Charlie Loudermilk

Thank you again for the interest in the Company. I am quite pleased that the first quarter 2008 exceeded our earnings expectation. It seems like the Company is back on track. Our write offs, we have been working very hard on that and it is now down to 2 to 2.5%. The big number that I see in this is that we have a nine cent new store drag last quarter and of course when you reopen 250 stores in about 18 months, we expected a large new store drag. That drag should be less and less each month thereafter because these stores are getting older. As we all know, the first month when a store opens our largest loss. It decreases as time goes on.

The Company is doing very well; I am very pleased that our people have responded to our call for this being the year of the profit; last year was the year of the store openings and this year is the year of the profit. They are responding well and from the Chairman, I can tell you I am pleased.

Ken.

Ken Butler

Yes, thank you Charlie.

Once again, I want to thank all of our fellow associates, franchisee and vendor partners for their effort not only this last quarter but for the last 18 months. Our people have risen to every challenge that we presented for them and I am very grateful for their efforts.

These past 18 months, we have been going full throttle opening new stores. This past quarter, we saw the beginning of the slow down as we opened 27 new stores.

We also worked with franchisees by acquiring 13 new franchise stores and we sold 11 back to franchisee.

We are looking at areas of the country; we have strong management in looking at areas that we may be weaker and seeing might be better suited to franchise.

We are also looking at every store’s performance and we have closed 25 under performing stores during the quarter. We fully absorbed the losses in the quarter associated with these store closings.

The conclusion of this is that we are pulling any leads we may have in the system and will continue to focus on improving profitability. We will continue to do this the next two quarters and allow our management team to strengthen our bench and look to eliminate much of the new store drag we are currently experiencing.

We look to begin a normalized expansion plan at 10 to 12% new store growth in 2009. We are already seeing our bench replenished in our new internet based training we call e-university is showing positive results.

This quarter, we gained a record first quarter 36,000 new customers, which is slightly ahead of our then record customer growth in the first quarter of ’07.

In the first week of April, we attained a new milestone by adding our one millionth active customer on lease. Our business in April is ahead of last year and we are optimistic for our growth this quarter with the tax rebates beginning in May.

On the write off side of things, I am real pleased with the quick turn around our team has accomplished by going back to a paper system versus a paperless system and we have immediately posted better operating results in our collection and write off areas.

Our franchise systems continue to move forward as we awarded 15 new stores fronts to the quarter bringing our pipeline at the 300 new franchise stores to open in the future.

Overall, we remain upbeat and we look forward to the future of our customer will be receiving a tax rebate this quarter and a mandated digital signal, which in February 2009 will continue to increase our high definition sales of televisions.

Now, for Gil.

Gil Danielson.

Why don’t we have Robin report on (inaudible) to rent.

Robin Loudermilk

Not a lot happening there just busy. As Ken reported, a lot of sales in our furniture actually seem to be strong. The furniture sales in our stores counter to a lot of folks we hear out there on the streets, we are very pleased with that. We are doing a lot of advertising and moving a lot of products through our furniture manufacturing.

We are happy; we are ahead of last year as far as production and profitability in those plants. We run a break even but the process is kind of relative, but we are ahead or we were. We shouldn’t see a drag there.

Rent to rent is flat; it has been flat. It has been that way for years. We have a lot of good associates in there that are working on it. We are opening a couple of new stores where the markets and the customers want our services. All in all, it is kind of flattish, but again manufacture is positive and rent to rent still continues to be profitable. It has always been a very profitable piece of our business and we assure that will continue, Gill.

Gil Danielson

Thanks Robin, I will go through some of the highlights for the quarter.

The Company revenues increased 13% to 437.3 million. The sales and lease ownership revenues increased 16% during the quarter, compared to a year ago to 406.3 million.

In addition, our franchisees collectively increased their revenues to 167.4 million, a 13% increase over last year’s quarter. The revenues of the franchisees are not, however revenues of Aaron Rent, Inc.

The same store revenue growth for the quarter for the Company stores was 2.6% and for the franchise stores, it was 13%.

Net earnings for the quarter were 24.8 million or $0.46 per share compared to $0.48 last year when we absoluted the parking debt fill we had in the first quarter of 2007.

As the press release said, we did do a lot of movement in the stores during the quarter. We added a net three new Aaron Stores with a lot of merging and realignment during the quarter. We opened 14 new Company operated stores, 8 new franchise stores, 2 Company operated Renco Stores and 2 franchise Renco Stores.

Also merged and closed, 20 Company operated and pre-franchise stores during the quarter. In addition, we did acquire 13 franchise stores and sold 11 Company stores to franchisees. We opened two new corporate furnishing stores and then closed two stores. A lot of that realignment that was certainly done so far this year and there will be some more continuing throughout the year. All being made to just look at the business and the ultimate goal is to increase the profitability of the Company.

We did record a $2.3 million gain in the quarter from the sale of the Company operated stores to the franchisees; however we did have some lease obligations. Primarily lease obligations which we had to record and a few other cost of real estate of 1.6 million associated with those closings and merging.

As Ken mentioned, we awarded area development agreement to open another 50 franchise stores during the quarter and our pipeline of stores to open at the end of March with 300 stores.

At March 30, we had 983 Company operated sales and lease ownership stores open, 483 franchise stores, 29 Company operated Renco stores, 6 franchise Renco stores and 62 corporate furniture stores open for a total 1,563 stores.

As we mentioned in the press release, we did re-purchase some more shares of Aaron Rent common stock during the first quarter and we currently have approximately 3.9 million shares authorized for additional repurchase at this time.

We talked a little about the same store revenue growth. If we take out the Florida market, the Florida market continues to be soft for the Company; the same store revenue growth for the quarter would have been 3.4%.

The write offs, we will mention that a little bit have certainly started to improve that is percentage of revenues. If you look at sales and lease ownership store level gross revenues, the write offs were 2.5% in the first quarter compared to 3.1% in the fourth quarter and they were higher than that in the third quarter. Certainly the trends are getting much better from the Company side and the write offs and we expected to see some incremental improvement as we go out throughout this year, 2008.

That’s our comments for the quarter, we will certainly take any questions and answers that people may have.

Question-and-Answer Session

Operator

Thank you, we will now begin the question and answer session. (Operator Instructions)

Your first call is from the line of Arvind Bhatia from Sterne, Agee please proceed.

Arvind Bhatia - Sterne, Agee

Good morning, a couple of questions. First, did you give the number for same store sale that your stores that are two years or older and my second question is on gross margins. I noted that your rental gross margins were highest that I can remember, 64.5% in this quarter. Can you tell us what is going on there and then retail margins as well at Renco is pretty strong at thirty five – seven. We were looking for about 32.5 for the quarter. Help us understand both those costs and gross margins, how you are looking at them.

Gil Danielson

The comps for stores that open 24 months at the end of March were basically flat. It was like a negative .1%. So, it is basically a flat comp. As far as the margin improvement are concerned, it is our margin on our sales and also depreciation as a percentage of revenues has gone down or in other words the margins have improved. Certainly, a lot of that is just due to our stores and supply costs and certainly, it has been looked at very carefully over the last several years and we are getting some good product purchasing power from our vendors and that is slowly kind of working its way through the system.

I wouldn’t look for a huge margin improvement from the depreciation and the cost of sales moving foreword; but, I think there is still some opportunity that it will slightly improve in the next few quarters.

Ken Butler

Keep in mind, too, Gil, we are starting to see some benefit from increasing retail prices a year ago and we did have a good improve in our collection efforts. When you do this, you put more revenue in the store. We are right where we needed to be in our collections.

Gil Danielson

Yes, with the anniversary, about a year and a half now, I get the increase in the retail prices that are going to help a little bit.

Arvind Bhatia - Sterne, Agee

To the 64.5 you got this quarter, is that a good number to use ongoing?

Gil Danielson

I don’t have that number right before me that you are using, but I think if you look at our cost and sales as a percentage of sales and our depreciation as a percentage of rentals that happened in this quarter, I think it will be comparable, both numbers will be comparable to the rest of the year.

Arvind Bhatia - Sterne, Agee

The comps you said two year old stores was flattish, I assume that number will be higher as you exclude Florida. You can help us with that, maybe?

Gil Danielson

It would be; I don’t have that number in front of me. Florida is a big market for us. It is 11-12% of our revenues and it is mostly Company stores in Florida. As we mentioned before, it has been tough the last few quarters. We are not predicting any major changes; we are hopeful that it will pick up a little.

Ken Butler

Gill, I think it has picked up. What is happening is we went under water in Florida about a year ago and we had a (inaudible) trend 2, 3, 4 straight quarters. Now we are starting to overlap. We had a great first quarter last year and I think we are starting to overlap those numbers. I think it will get better as we finally catch up on some bad quarters from last year.

Arvind Bhatia - Sterne, Agee

When you look at the rest of the year, in terms of same store sales, as your new stores come online and get into the comps, etc., should we be expecting acceleration in the back half of the year, or is that still the thinking?

Gill Danielson

I would think so; we have opened a ton of stores during the last 18 months or so. I am hopeful our comps will be a little better in the second quarter; I think there is opportunity for it to get somewhat better the latter half of the year as all the new stores come into the comp base after 15 months.

Arvind Bhatia - Sterne, Agee

Are you doing anything special around the time when the customers start to get the rebate checks in the mail? Are you doing special advertising, to get them in the stores this year?

Ken Butler

I think we are referencing that in our ad through advertising. When you get the tax rebates back in February, you don’t really have to advertise it. You put more money in our customer’s hands and they seem to bring it to us. They do it in a form of paying out their agreement in 90 days same as cash and leasing something else. That is one reason this quarter spikes up so high because we do have a number of early payouts. I would anticipate we would have more of those this quarter. Our collection efforts are going to be good because our consumer’s have money in their back pocket.

Arvind Bhatia - Sterne, Agee

The last question on the role in this competition, etc. is there any change outside of Florida, which has other issues. Generally speaking, any change in your mindset about competition?

Gil Danielson

No, I mean no disrespect but we bid two different models out there and I think we pitch to a different customer than one of our other competitors. We hope they do well and we think we can prosper too.

Charlie Loudermilk

We are not going into the payday loan business.

Arvind Bhatia - Sterne, Agee

Thank you, guys.

Operator

Your next call is from the line of Joel Havard of Hilliard Lyons please proceed.

Joel Havard - Hilliard Lyons

Good morning everybody, congratulations.

Ken, would you mind going back and reviewing the customer count numbers and I don’t know if you’ve got it handy; but maybe you could differentiate between Companies versus franchise.

Ken Butler

We ended the quarter, I am talking about (inaudible), which sells in the lease ownership of 963,968 total customers, corporate customers we have 634,616 and franchise 329,352 and when we hit the million milestone, we were adding the furnishings customers to that in the first week of April.

Joel Havard - Hilliard Lyons

Is that normal to include the corporate customers? That is a different number, right?

Gil Danielson

No that is 15% of where it was this same time March a year ago.

Joel Havard - Hilliard Lyons

Does the number of contracts sort of mirror the normal historical ratio?

Ken Butler

I have 1.3 million contracts on lease and I think a year ago we had 1.147 or something like that.

Joel Havard - Hilliard Lyons

Secondly to Gil, the tax rate in Q1, a little different, does this reflect some of those timing issues that you are getting with this?

Gil Danielson

No, it doesn’t have anything to do with the payment. We just had a little bit higher state taxes issues that showed up in the first quarter than what we’ve had in previous quarters a little minor uptake. I would use 38% rate for the rest of the year from the tax revision standpoint.

Ken Butler

Gill, talk about the new law that is going--

Gil Danielson

Yes, there is that the Congress passed this law the end of December. Certainly, we have been part of that law is rebates that come to the consumer in May and June, which won’t hurt our business and hopefully it will give us a boost; but also we already have accelerated depreciation procedures for tax purposes. It will accelerate the depreciation more in ’08. We are in a situation in ’08; we will pay very little federal income tax in ’08. We will have to pay it all back in ’09 and ’10. It is kind of a one year benefit. It is like an interest free loan from the Government. That should be around $50 million of free cash flow this year in ’08 that we won’t have to pass on to the Government. It will certainly help from a cash flow standpoint.

Joel Havard - Hilliard Lyons

Does that equate into a more aggressive share repurchase effort as a result or just keep it for corporate purposes or any thoughts?

Gil Danielson

It didn’t really tie into that situation; we are buying our shares when we feel it is a good opportunity to buy the shares at a price and make a lot of sense to us. As I noted in the earnings release, we generated over 30 million free cash flow from operations in the first quarter. That will continue and if you throw in this IRS holiday here, our cash flows from operations will certainly be more than 100 million this year. It could get close to 150 million from operations.

Joel Havard - Hilliard Lyons

Lastly, this may mirrored the previous question, the SG&A operating expense ratio in Q1, a little worse than last year but a little better than we were looking for. Obviously, you don’t care about our forecast, but is there a store level dynamic that you can point to already that is starting to benefit sooner than the streets looking.

Gil Danielson

What drives the operating expense is as you know that new store drag Charlie talked about that was heavy in the first quarter as it was in the fourth quarter. That will start going down because of the dynamics of opening stores and slowing down the growth a little. That was a big factor in the operating expenses. We also noted in the earnings release, we had a charge in there for closing those stores and things like that. I think we are making progress on that. We are certainly continuing to build revenue. I think we are going to get some good leverage off our operating expenses in the latter half of the year and that should translate into a better bottom line numbers.

Joel Havard - Hilliard Lyons

Is that to say that you would be comfortable thinking that ‘08’s operating expense as a percent of sales could improve you here or are we still on this transitory period where it could be somewhat above year ago levels.

Gil Danielson

I think it will improve as we get into the latter half of the year, if you just looked at the quarters in the latter half of the year. For the whole year though, I think it will be somewhat comparable for the whole year. As you look at the first quarter, we are running above last year’s level of performance in the first quarter.

Joel Havard - Hilliard Lyons

That is encouraging, thank you and good luck.

Operator

Your next call is from the line of Laura Champine from Morgan, Keegan please proceed.

Laura Champine - Morgan, Keegan

Good morning, it looks like you kept the same store opening expectations, but now that we have some closures in there, what do you think we will have in terms of full year number of net new stores added?

Ken Butler

I don’t know; we are looking month by month with each individual store. We have leases that come up and sometimes we might have some count, some stores wedged in that aren’t performing like they ought to perform. It is really hard to tell. We’ve got 40 stores, 40 pieces of dirt that we could start developing and we haven’t really started. I put them on hold. We are still going to open up a few stores this quarter, next quarter that are already moving forward and in line spaces. I am not thinking store counts right now; I am going to focus on that next year and focus on profitability this year.

Charlie Loudermilk

We also own what $75 million real estate that we want to sell and lease back.

Gil Danielson

We have a little bit more than that, but we are actively marketing about $75 million of real estate that we have acquired over the last couple of years and are gradually marketing that, to sell that real estate and lease it back.

Not predicting anything, want to see how the terms and conditions are, but we will probably get some of that done. That will improve cash flow this year, too.

Operator

Your next call is from the line of John Baugh from Stifel Nicolaus please proceed.

John Baugh - Stifel Nicolaus

Good morning, that charge off number was terrific and I recall your commenting sort of monthly on the last call, the way it was tracking January and February. Do you have that number monthly, it was 2.5 average for the quarter?

Gil Danielson

I don’t have that monthly for the moment John; I could provide it to you later.

It is improving.

John Baugh - Stifel Nicolaus

Do you expect it to be the 2 to 2.5 range, maybe?

Gil Danielson

I don’t see any reason why it would change. It is a little tougher conditions than the second, third quarter than they are in the first; but, hopefully with the rebate we have coming it is going to keep our customer counts pretty healthy. If our customers are healthy, we are generally pretty healthy.

John Baugh - Stifel Nicolaus

Help me understand, when you tighten collections, obviously, to the extent you get a collection, you get revenue and that helps revenue; but one of the ways you improve the charge off number is to never rent to somebody in the first place who looks a little shaky or to take the item back before they skip town with it, which of course would preclude the opportunity of collection revenue. There are some offsets aren’t there? Explain how tighter collections is obviously good for profitability. How does that impact revenue?

Gil Danielson

Let’s say a store has a receivable bank of $100,000. If everybody pays the way they are supposed to pay that store would get 100,000. If you have looser collections, you may only collect 88,000 in that particular month. If you have better collection, you may collect 95,000. That is substantial when there is a difference of $7,000 on a store’s profitability because that money goes straight to the bottom line.

To speak about tightening, we really don’t look to tighten our requirements to get the product. If were trying to get products and require everybody to have a credit card, we wouldn’t have a business. We respect that and one thing Charlie said on here several times, if they lease, the consumer knows they don’t own it, they are leasing it from us and it does help our ability to get the product back. A lot of the write-offs do occur sometimes in the later stages of our agreement where a customer says, just paid enough. They now we are probably not going to take them to court and they may also know they will not get to lease another item from us, but by the same token, those can be very challenging. If we had the larger percentage of our customers paying a relatively timely basis, it will reduce charge offs on approved operating results and on approved charge offs.

John Baugh - Stifel Nicolaus

You had eight franchise stores open and I guess the target is still in the 70 (inaudible) and you don’t control the franchisees per se, what is your conviction level that we hit that 70 for the year?

Gil Danielson

I think we will hit the 70; as you say, we don’t control the push a lot and prod a lot but we feel confident we will hit that number. Sometimes you just get some quirks where you don’t hit it in one particular quarter, but we feel confident that will happen.

John Baugh - Stifel Nicolaus

On the comps for the franchisee, it is a little different from the corporate stores, how much of that can be explained by maybe the two year and older count being lower, in other words, the two second year ramp. First is just they are doing half a percent better?

Gil Danielson

We don’t break down; it’s their revenue not our revenue. We don’t break down their comps details. I will say that they have younger stores at the moment. I have looked and I think about 39% of the Company stores we have right now are five years old and only 39% of the franchise stores are. By having younger stores that certainly helps the comp base.

I don’t have much more colour on that.

Ken Butler

I can add a curve ball to it, when we buy back all their bad reports. I get to hand those to my side and they get it taken off their side.

Charlie Loudermilk

This has to do with the management of the stores; all managers have the ability to operate a certain number of stores. Some of them will top out at 600 customers, some will top out at 2,000 customers; but when you get up to five years or more you may be topping out on the number of stores. That doesn’t mean they are not very profitable, the large and very profitable but the growth is not there. Not because the customer (inaudible) but it’s a matter of whether that manager can collect or not and feels comfortable running that number of customers. When it does, then we just open another store nearby and I have done that from day one. The first store in Atlanta, then the second and cannibalize the first for a little bit but that is how you grow the Company and that is what we have done.

I think we are very healthy now, John.

John Baugh - Stifel Nicolaus

What I am trying to drive at and better understand is, we have a tough economy and that probably slows business somewhat and that would show up in your corporate numbers. It is seemingly not showing up with the franchise numbers which speak to more of execution problems.

Ken Butler

Keep in mind and I think Charlie just said it; you have a lot of franchisees that bought some pretty good size towns with a commitment from one store where we may be in the same town and have three stores or a town like it. They may have a store in one town with 150,000 people doing 170,000 and growing and we may have split it up into three stores by now and have three stores doing 120,000. It gets tough on the comp on the original store when you add the extra store. If you are not adding stores in that town, it gets easy to grow that Company.

John Baugh - Stifel Nicolaus

Point well taken, last question, what kind of analysis are you using in terms of and looking at less profitable stores or unprofitable stores, the ones you are closing? How tough are you getting, what metrics are you using?

Ken Butler

The old matrix called gut. Looking at each store and turning over lease. Speaking of leasees about it as leases come up and kind of going on somewhat of their recommendations or maybe going on a challenge to them as well.

If it is a relatively new store, we are going to give it time. If it is a store that the lease has come up and they’ve had five years to get it done, we may merge it into another store. The other part of it is it merge able. If it’s not, it is in a small town then it might be more suitable to franchise. We will try to market it to a franchisee.

Gil Danielson

John, I just wanted to clarify, I said 39% of our Company stores were over five years old. It is 38% and then 31% of our franchise stores.

I also did some other while we are talking about franchise stores. As you know, I guess it was 3 or 4 year ago, we raised the royalty fees from 5% to 5%; but franchise agreements are a ten year agreement so it takes some time for it to roll in. At the end of March, 45% of franchisees were paying 5% and 55 were paying at 6. Eventually, everything will migrate to 6 over the next 4 to 5 years. That will be a margin improvement for continuing as we go through the upcoming quarter.

John Baugh - Stifel Nicolaus

Thanks.

Operator

Your next call is from the line of Laura Richardson of BB&T please proceed.

Laura Richardson - BB&T

I have a question; a lot of mine have been asked already. Could you comment on sales in different product categories especially TVs, appliances and furniture?

Ken Butler

I know our LCD sales are brisk and I also know that we have stabilized and actually increasing our furniture business. Above that, I think I mentioned on the last conference call, we did make some changes with our pricing strategy from furniture in the corporate stores hadn’t really done it in the franchise stores and we’ve seen a trend break in that we are putting in more furniture in the corporate stores than we are in our franchise stores. It is great because that’s a better margin product. The LCDs and computers are maybe a little bit lower margin and we can’t stop demand if somebody comes in for an LCD, we can’t turn them on to a sofa/loveseat. The demand seems to be brisk for the LCD TVs and I think a lot of that is people know what is about to happen next year. They see the ads on TV everyday.

Gil Danielson

Laura, I have statistic we look at as interesting, we look at new leases written last 12 months compared to the 12 month period before that and in every category, just about, we are up in new leases year to year and televisions are up 23% in new leases, computers are a little bit slower. The computers been a great items for us for two or three years but they are up about 4%. Upholstered furniture is up 8%. Our furniture business is actually up; our bedroom furniture is up a couple of percent. Bedding is up 12%’ dining room furniture is up 10%. We are just up in just about every product category on new leases from what we were a year ago. I think it certainly is a positive for the business.

Laura Richardson - BB&T

You covered everything but appliances, so I asked about that too.

Gil Danielson

Up a couple of percent. Laundry is up 5%, refrigeration up 2%.

Laura Richardson - BB&T

Thanks, I also want a follow up on the tax thing you mentioned. Which tax is on the income statement versus cash flow statement?

Gil Danielson

On the income statement, the provision should use about 38% provision, which is percentage of pre tax profit on the income statement. The deferral on the balance sheet is where the free cash flow factor will come in and that deferred taxes will go up this year as we recognize income that we deferred paying it, which is a liability to the Government.

Laura Richardson - BB&T

That can be like $50 million?

Gil Danielson

This is extremely complicated and very hard to say; but it will be a substantial number in that range.

Laura Richardson - BB&T

Okay, thanks.

Operator

(Operator Instructions)

At this time, I show no further questions.

Charlie Loudermilk

Thank you very much for your interest in the Company and we will talk to you in about three months, thank you.

Operator

Thank you ladies and gentlemen, this concludes today’s conference.

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Source: Aaron Rents, Inc. Q1 2008 Earnings Call Transcript

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