Aaron's Inc.

Hello, I'michael Rodriguez and I'll be giving you a brief executive s Arons Incorporated, a pioneer in the furniture and rental industry, was founded in 1955 by Charles Laudermilk and has been a publicly traded company since 1982. Today, Arons is the leader in sales and lease ownership of residential furniture, cons Through the third quarter of 2013, it was not as profitable as estimated. Arons always looks for ways to run a more efficient company. In order to stay the nation's n The problems we see today is the turnaround time between ordering replacement parts and receiving parts, receiving credit for damaged parts, reimbursement for shop time for in-house servicing and reimbursement for third party servicing. Reimbursement can take as long as six to eight weeks. One solution we're looking at is a quarterly allowance based on a percentage of purchased inventory. For example, in the South Texas region between the months of January and March, Arons was able to purchase inventory from Simmons of just a little over $298,000. With a 5% allowance, were able to receive a quarterly allowance of close to $15,000. This allowance will help us satisfy the customer by able to replacing damaged goods within days versus waiting six to eight weeks. We can free space in our warehouse for sellable inventory versus stockpiling damaged merchandise and we're able to make the decision to discard salvageable items to our Arons community outreach program and homeless shelters. Some of the advantages is that we obviously will reduce cost of in-house service or third party servicing. We will increase inventory, therefore allowing buyers to purchase larger quantities of reduced cost and by donating discarded items, we will have a positive publicity. Our team is led by the regional manager Al Moffitt, our poultry buyer Carl Little, betting buyer Jeff Kellogg and our electronic and appliance buyer Saul Gonzalez. These four have over 100 years of combined purchasing experience. Our regional buyers that supply the stores with merchandise have many years of experience. Together with the company's accountants and other head managers, they can negotiate with manufacturers to come up with a fair allowance that will allow both Arons and the manufacturers to reduce operating costs for the service department, increase customer satisfaction and in the long run, the stores will utilize warehouse space more efficiently, increasing inventory, increasing sales and increasing profits. Thank you for your time.