As previously announced, during the fourth quarter the company acquired substantially all of the assets of Rosey Rentals, L.P., and its second largest franchisee with 35 stores in six states. In addition, during the quarter the company has purchased the accounts of 18 stores from several competitors, as well as buying one store and selling 11 stores to other operators. The company also has merged 20 of its RIMCO stores into existing Aaron’s Sales & Lease Ownership stores and is re-evaluating the wheels and rims concept. After the opening of new stores and these store re-alignments, the company is now expecting to have approximately 1,045 company-operated stores and 500 franchised stores open by the end of 2008.
Mr. Loudermilk continued, We expect same store revenues for the fourth quarter to increase 5% to 7% compared to the fourth quarter of 2007. Our earnings guidance for the fourth quarter and fiscal year 2008 is unchanged, with diluted earnings per share for the year expected to be in the range of $1.60 to $1.65, excluding gains from fourth quarter store sales and any gain or loss on the previous announced sale of the Aaron’s Corporate Furnishings division.
We are altering our 2009 square footage growth plans somewhat, and expect to increase overall store growth next year approximately 5% to 9% over the store base at the end of 2008. This will be net store growth after opening a combination of Company-operated and franchised stores, less any opportunistic merging or disposition of stores. This rate of growth should allow us to improve margins as well as fund our expansion without the need to seek additional sources of capital. Due to the current strength of our business and our outlook for next year, we are increasing our earnings guidance for 2009 from previously expecting to achieve diluted earnings per share in the range of $1.65 to $1.80 to now expecting $1.70 to $1.85 per share.
