How good is EAs digital business? Digital revenue for 2011 grew 79% year-on-year, coming in over $1 billion. The third quarter (its fiscal year ends in March) was especially strong for the company, with all its digital businesses bringing in $274 million over the holiday quarter, a 40% boost over the same period in 2010. This is in addition to revenue from the companys subsidiary PopCap, a mobile- and social-games maker that EA acquired in July and isnt included as part of EAs quarterly financials.

The origin of Origin

Whats significant about the strong performance of EAs digital initiatives at the end of 2011 is that it marked a period when EA was aggressively touting its big-budget blockbuster gamestypically marketed as games for home gaming consoles like Microsofts (NASDAQ:MSFT) Xbox 360 and Sonys (NYSE:SNE) PlayStation 3as digital downloads on Origin. Origin is the companys new digital storefront for gamesthink iTunes or, more appropriately, game developer Valves competing service, Steam, which lets users purchase games as they would at a retailer like GameStop (NYSE:GME) or Best Buy (NYSE:BBY) but also offers access to a community for playing games with others online.

Origin opened for business halfway through 2011 and some industry followers worried that EA was splitting the digital market by making some of its games available exclusively as digital products on Origin. EA nonetheless managed to do good business with Origin by the end of the year, pulling in $100 million of the companys total digital revenue.

More promising for the company and Origin is the early success of the new online role-playing game Star Wars: The Old Republic, a competitor to Activision Blizzards (NASDAQ:ATVI) multibillion-dollar earner World of Warcraft. Released on Dec. 22, Star Wars already has 1.7 million subscribers, and 40% of those sales were made through the Origin service. (There was also some concern that Star Wars wouldnt yield a return on its $80 million development. Wedbush analyst Michael Pachter, though, said in May that EA only needed between 350,000 and 500,000 subscribers to turn a profit on the game. Goal achieved.)

A digital future, but still a hardcopy present

The companys digital business is growing and fast. Whats more, EA is transitioning those big-budget titles to its own digital sales platform and making money in the process. It is handling change well. It is not, however, changing fast enough. Total revenue for the fourth quarter is expected to be between $925 and $975 million, meaning that digital still only represents around 28% of EAs quarterly business.

Sales of physical games like Madden NFL, FIFA, and Battlefield 3 are still what drive EAs business. Origin is clearly a growing business and the success of titles like Star Wars on the platform prove its viability, but EAs competition is fierce. Valve doesnt disclose earnings from its Steam service, but a Forbes report last year suggested that it pulls in about $2.8 billion annually. That was in February 2011. In February 2012, Valve announced that it’s bringing Steam to Apples iOS devices and Googles (NASDAQ:GOOG) Android handhelds. EA needs more than just a popular Star Wars game to make Origin a Steam challenger.

Investors shouldnt shy away from EA. The company is doing just fine. As CFO Eric Brown said, the 2011 holiday sales season marked EAs best cash flow quarter in 31 quarters. Any industry follower expecting EA to be a king of the hill once video games become a purely digital business, though, may be disappointed.

As of this writing, Anthony John Agnello did not own a position in any of the stocks named here. Follow him on Twitter at @ajohnagnello and become a fan of InvestorPlace on Facebook.

Mothercare has hired an ecommerce veteran as its new chief executive as it looks to improve its position as a multichannel retailer.

Simon Calver joins the nursery retailing group, which also includes the Early Learning Centre, from digital entertainment company LOVEFiLM, which is now part of Amazon. Calver replaces Ben Gordon, who left the company by mutual consent in November after nine years. He joins Mothercare at a time when falling sales have prompted a structural review of its UK business, including its ecommerce operations.

In the first half of its financial year, to October 8 2011, the company reported bottom-line losses of £81.4m, down from a profit of £0.3m at the same time last year. Sales fell across the Mothercare group, with like-for-like figures down by 7%, and ecommerce sales down by 5.6%.

Today Calver said he was delighted to have the opportunity to lead the “iconic company as we work to consolidate its position as one of the world’s leading parenting groups.” He added: “While there are near-term challenges ahead, I am committed to the recovery of the UK business and the accelerated growth of these aspirational brands around the world.”

Mothercare chairman Alan Parker said: “Simon Calver is a highly successful business leader with experience heading multinational consumer facing organisations. His ecommerce and brand expertise will enable Mothercare to accelerate its development as a multichannel retailer in the UK and his international perspective will be invaluable to the continued rapid expansion of Mothercare and Early Learning Centre globally.”

Calver, who started his career at Lever Brothers, has been chief executive of LOVEFiLM since 2005, and led its merger with Video Island.

An excellent report this week on CNN, sheds light on the neglect of these animals, from domestic pets, to farm animals and everything in between.

An emu and a ewe are not your usual domestic pets. But, for Mary Dewsnup and her partner Willard Bedford, they were pets and family members.

An emu is a large, exotic bird, very similar to the ostrich. A ewe is a female sheep. Though they were two very different animals, Mary said they bonded and were inseparable.

Where you saw one, you saw the other, she said.

Dewsnup said that the emu was hatched right there in their backyard, nearly 10 years ago.

But Dewsnups happiness and joy for her pets came to end last Sunday, when she said they were brutally killed. She said they were mauled and attacked by her neighbors two pit bull dogs.

Im angry, Im very angry, said Dewsnup.

Dewsnup claimed the dogs forced their way through the wooden fence that she shares with her neighbor.

Eyewitness News contacted Dewsnups neighbor. The woman living there didnt want to give her name, but she said the allegations are false and said her dogs were chained up. The female neighbor also said that her family only has one pit bull, not two. She said that she believes the holes in the fence are the work of other neighborhood dogs.

All I want them to do is take care of the animals. Do something with the animals. I do not want them in the Bakersfield area, Dewsnup said.

Dewsnup told Eyewitness News that her partner reported the incident to Kern County Animal Control. A spokesperson for Animal Control said the agency is looking into the matter.

The female neighbor said she sympathizes with the loss, because she has animals of her own. But, she said her dogs were not responsible for the attack.

Dr. Clare Knottenbelt is a professor at the College of Medical, Veterinary and Life Sciences at the University of Glasgow, Scotland, where her recent research involves assessing hair nicotine in dogs exposed to secondhand smoke. She answers this weeks questions.

Question: What role does secondhand smoke play in a pets health?

Answer: It has been difficult to prove many associations with secondhand smoke (SHS) in pets because we cant ask the pet themselves. However, we know it can increase the risk of some cancers.

In addition, the smoke sticks to the pets hair, which means when they groom themselves the smoke will be eaten as well as breathed.

As vets, we can tell when an owner smokes because their pet smells strongly of stale smoke. I met one owner who realized the effect that smoking was having on her cat when she found the cats bed was stained with nicotine.

Question: What specific problems have arisen from secondhand smoke? How serious can they be?

Answer: We know that SHS exposure increases the risk of nose and lung cancers in dogs and lymphoma (cancer of the white blood cells) in cats. It also may have a role in mouth cancer in cats and changes the cells in the lungs of dogs.

In cats, lymphoma has a poor prognosis, with cats rarely surviving more than six months even with aggressive chemotherapy. Nasal cancer in dogs requires radiation therapy and even then the cancer is likely to recur.

Question: Do pets face the same kinds of problems as humans who are exposed to SHS or are they worse? Is lung cancer or respiratory problems a big issue?

Answer: Dogs and cats do not get the kind of heart disease that humans get; however, cats are prone to asthma and dogs are prone to allergic skin disease.

Lung cancer is relatively uncommon in cats and dogs, but we do know that in dogs the incidences increase when an owner smokes.

Question: Are some breeds more vulnerable than others?

Answer: Not really, although smaller dogs may be bathed more frequently than larger breeds. This might affect how much smoke remains on their coats and was, therefore, able to be ingested.

Question: What kind of monitoring should a veterinarian do to determine if SHS is affecting his/her patient?

Answer: I think the most important thing a vet can do is to ask the owner about SHS exposure when performing routine health checks. Owners can reduce the effect on their pet by only smoking outdoors or, of course, by giving up completely.

Owners tend not to think about the effect that they habit is having on their pet, so it is the vets responsibility to ensure that the pet has the fresh air it deserves. This should be routine for all pets, but every vet knows that you can smell a pet whose owner smokes as soon as it enters the room and that is a sign that exposure is significant.

Question: You are now studying nicotine levels in the hair of dogs. Can you generally tell us how many animals are involved and what you are finding?

Answer: My study, which is being presented at the World Small Animal Veterinary Association (WSAVA) conference in Birmingham, England, next April, used hair from 38 dogs. We found that the levels of nicotine in dogs exposed to SHS were similar to those found in children in smoking homes.

Reducing the amount of exposure by smoking outdoors significantly reduced the amount of nicotine in the hair and is a valuable way of reducing exposure to the toxins in cigarette smoke.

Dr. Clare Knottenbelt

Knottenbelt is a professor of small-animal medicine and oncology, clinical director of the small-animal hospital and head of small-animal clinical sciences at the School of Veterinary Medicine, College of Medical, Veterinary and Life Sciences, at the University of Glasgow in Scotland. She graduated from The University of Bristol in 1994. Her major areas of interest are the prevention and treatment of cancer in domestic pets.

Read our past QAs:
Veterinary QA: Liver disease
Veterinary QA: Human meds can be toxic for pets
Veterinary QA: Food allergies
Veterinary QA: Follow-up on toxins — aloe vera
Veterinary QA: Common toxins for pets
>Veterinary QA: Dogs with dry, itchy skin
>Veterinary QA: Ways to stop stool eating
Veterinary QA: Holiday toxins that can hurt your pets
Veterinary QA: Itchy skin and hair loss in cats.
Veterinary QA: Pancreatitis
>Veterinary QA: Dementia and senior dogs
Veterinary QA: More health issues facing aging dogs
Veterinary QA: Eye problems in aging dogs
>Veterinary QA: Halloween treats and pets
>Veterinary QA: Health issues facing aging dogs
>Veterinary QA: Why blood work is necessary
Veterinary QA: Are prong collars safe for your dog?
Veterinary QA: Birth control for pets
Veterinary QA: How to find a good vet
Veterinary QA: Neutering your dog Part 2
Veterinary QA: Neutering your dog Part 1
Veterinary QA: Hyperthyroidism in cats
Veterinary QA: Incontinence in dogs
Veterinary QA: Hanging tongue syndrome
Veterinary QA: Bad breath in dogs
Veterinary QA: How much is too much exercise for my dog? Part 2
Veterinary QA: How much exercise does my dog need? Part I
Veterinary QA: A killer called bloat
Veterinary QA: Initial care for new puppies
Veterinary QA: Knee problems in dogs
Veterinary QA: Flea-control treatment
Veterinary QA: Bearded dragon lizards
Veterinary QA: Vaccinations for indoor cats
Veterinary QA: Lumps and bumps
Veterinary QA: More on aging dogs and arthritis
Veterinary QA: Aging dogs and arthritis
Veterinary QA: Puppy and geriatric exams
Veterinary QA: What dogs can safely chew
Veterinary QA: Why does it cost so much to clean a dogs teeth?
Veterinary QA follow-up: More on cleaning a dogs teeth
Veterinary QA: When to spay or neuter

Do you have a question about pet health? Ask now! Well pose some of your questions to a local vet in an upcoming post.

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Nick Scali Limited (ASX: NCK) has reported lower profits, but strong trading in January, and immunity from the online threat makes this no ordinary retailer.

Furniture retailer Nick Scali Limited today reported an 11% fall in net profits from $5.9m to $5.3m for the half year ending 31 December 2011, despite an increase in sales revenue to $53.8m. The increase in sales was wholly due to the opening of new stores. Same stores sales growth was flat for the half.

The company has opened two Nick Scali stores and three Sofas2Go stores since June 2011. Despite the tough market conditions, Nick Scali is aiming to open more stores in calendar year 2012 for all three of its brands (Nick Scali, Sofas2Go and Chateau d’Ax).

It also reported that consumer buying patterns continue to be volatile month to month, although January (2012) trading has been strong. The company also stated that the new stores opened will make a much greater contribution to profitability during the remainder of the year.

Nick Scali declared a dividend of 4.5 cents, fully franked.

Nick Scali the company

Nick Scali is engaged in sourcing and retailing household furniture and related accessories. The company operates under three brands, Nick Scali, Sofas2Go and Chateau d’Ax.

Flat same stores sales are an improvement over 2011 full year results, when same store sales fell 1.6%.

EBIT margins have fallen dramatically from 16.1% for FY 2011 to 12.8% for the first half of 2012, reflecting discounting, price deflation and the costs of opening new stores.

Nick Scali has long term plans to open as many as 125 Sofas2Go stores, 21 Chateau d’Ax and 75 Nick Scali stores, so there’s still plenty of growth available, once normal trading conditions resume.

Furniture retailing has a level of protection from direct online (and overseas) competition due to the size and shape of the products, and this is partly reflected in the relatively small falls in profits for Nick Scali compared to other retailers such as David Jones Limited (ASX: DJS), Myer Holdings Limited (ASX: MYR), JB Hi-Fi Limited (ASX: JBH) and Harvey Norman Holdings Limited (ASX: HVN).

Nick Scali has stated that given the current volatility in the market, it was unable to provide a forecast for the 2012 financial year. I expect flat sales growth to continue, although the company should increase its profits thanks to the new stores it has opened in the last six months.

The Foolish bottom line

Trading on a forecast PE of around 12.6, a fully franked dividend yield of 5.8%, net cash of $14m in the bank and the stock trading near its 52 week low of $1.45, Nick Scali is one of the better situated retailers to ride out the storm.

Attention: Are you are looking for investing ideas for 2012? Request our free report, The Motley Fool’s Top Stock For 2012. Click here, whilst it’s still free and available.

More reading

• Vocus Communications: Focused and growing at optic fibre speeds
• Super Retail Group: The Super retailer?

Motley Fool contributor Mike King does not own shares in any of the companies mentioned. The Motley Fool’s purpose is to educate, amuse and enrich investors. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. Click here to be enlightened by The Motley Fool’s disclosure policy

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By Hiroyuki Kachi

TOKYO (MarketWatch) — The operator of clothing store chain Uniqlo said Thursday that it will open a new store in Manila in June, its first in the Philippines, as part of efforts to drive its overseas growth.

Fast Retailing Co. said the store, to be located in a shopping mall called Mall of Asia, will have a floor space of 1,550 square meters.

The move shows how the company is eager to ramp up its global presence, with the shrinking population in its home market chipping away at its domestic customer base.

As of Jan. 31, Fast Retailing was operating 214 stores in Asian nations excluding Japan. In South East Asian nations, it operates 11 stores in Singapore, Malaysia and Thailand.

ATLANTA, Feb. 9, 2012 /PRNewswire via COMTEX/ –
Total Revenues Increased 8% for Both the Quarter and Year

Same Store Revenues Increased 3.7% for Quarter

Diluted EPS of $.40 for Quarter and $1.43 for Year

Diluted EPS Includes $.03 Charge in Both Periods

Expanded Number of HomeSmart Stores and Incurred Startup Expenses

Aaron’s, Inc.

/quotes/zigman/1472429/quotes/nls/aan AAN
-0.90%

, the nation’s leader in the sales and lease ownership and specialty retailing of residential furniture, consumer electronics, home appliances and accessories, today announced results for the three months and year ended December 31, 2011.

For the fourth quarter of 2011, revenues increased 8% to $523.5 million compared to $484.4 million for the fourth quarter in 2010. Net earnings decreased 1% to $30.5 million versus $30.8 million last year. Diluted earnings per share were $.40 compared to $.38 a year ago, a 5% increase.

For the year ended December 31, 2011, revenues increased 8% to $2.024 billion compared to $1.877 billion for 2010. Net earnings decreased 4% to $113.8 million versus $118.4 million a year ago. Diluted earnings per share were down 1% to $1.43 for 2011 compared to $1.44 in 2010.

During the fourth quarter of 2011 the Company recorded a $3.5 million, or $.03 per diluted share, charge to earnings for separation costs primarily related to the accelerated vesting of restricted stock units and stock options previously granted to its former Chief Executive Officer. Diluted earnings per share for the fourth quarter and 2011 year excluding this charge would have been $.43 and $1.46, respectively. Additionally, as previously reported, the Company recorded a lawsuit-related charge in the second quarter of 2011 of $36.5 million. On January 13, 2012, the court ruled not to sustain the verdict previously reported, although it did not indicate what action it would take, including whether it would order a new trial or reduce the jury’s damages award. We are awaiting additional developments in the lawsuit, which could affect the litigation expense accrual. Excluding the fourth quarter separation-related charge and the second quarter lawsuit-related charge, net earnings for 2011 would have been $138.6 million, up 17% over the same period in 2010, and diluted earnings per share excluding the two charges would have been $1.75, a 22% increase over the same period in 2010.

“Excluding the aforementioned $.03 diluted per share charge, our results for the fourth quarter and year were within our guidance,” said Ronald W. Allen, interim President and Chief Executive Officer of Aaron’s. “We had good revenue and customer growth during the quarter, and believe the results were outstanding in these challenging economic times. Our market remains large, and the high-quality, affordable basic home furnishings we provide fulfills the desires and needs of our customers.”

“We continued to expand our HomeSmart weekly rental business during the quarter and had 71 HomeSmart stores open at the end of the year. Revenues of the HomeSmart stores grew to $8.6 million for the fourth quarter and $15.4 million for the year; however, the start-up expenses associated with opening these stores negatively affected earnings during the quarter by $.03 per diluted share and $.06 per diluted share for the year. We continue to be very optimistic about the future prospects for HomeSmart, but as previously stated, do not plan to open a significant number of additional HomeSmart stores until the earnings and return on investment potential of this concept are thoroughly evaluated,” Mr. Allen added.

Same store revenues (revenues earned in Company-operated stores open for the entirety of both periods) increased 3.7% during the fourth quarter of 2011 compared to the fourth quarter of 2010. Same store revenues also increased 2.1% for Company-operated stores open for over two years at the end of 2011. The Company had 1,015,000 customers at the end of the year, an 11% increase over the number at the end of 2010. The customer count on a same store basis for Company-operated stores was up 6.4% in the fourth quarter compared to the same quarter last year.

During the year the Company generated $307 million of cash flow from operations and had $176.3 million of cash on hand at the end of December 2011.

The Company repurchased 5,075,675 shares of its Common Stock in 2011 representing a total cash outlay of $127.2 million. The Company has authorization to acquire an additional 5,281,344 shares of Common Stock.

Division Results

Revenues in the Aaron’s Sales & Lease Ownership division excluding HomeSmart stores increased in the fourth quarter to $511.5 million, a 6% increase over the $481.7 million in revenues in the fourth quarter of 2010. For the year, Aaron’s Sales & Lease Ownership revenues were $1.999 billion, a 7% increase over the $1.861 billion recorded last year.

The revenues of the Aaron’s Office Furniture division, of which there is one remaining store liquidating merchandise, were $720,000 and $1.6 million in the fourth quarter of 2011 and 2010, respectively. Aaron’s Office Furniture experienced a $105,000 pre-tax profit in the fourth quarter of 2011 and a $495,000 pre-tax loss in the fourth quarter of 2010. For the year, revenues of the Aaron’s Office Furniture division were $3.7 million compared to $11.6 million for the same period of 2010, and pre-tax profits were $597,000 in 2011 versus a pre-tax loss of $11.6 million in 2010. Included in the 2010 fourth quarter and year-to-date losses are charges related to closing this division.

Components of Revenue

Consolidated lease revenues and fees increased 8% for both the fourth quarter and the year 2011 compared to the same prior year periods. In addition, franchise royalties and fees increased 2% in the fourth quarter and 7% for the year compared to the same periods last year. Non-retail sales, which are primarily sales of lease merchandise to Aaron’s Sales & Lease Ownership franchisees, increased 9% for the quarter compared to the fourth quarter last year and 7% for the year. The increases in the Company’s franchise royalties and fees and non-retail sales are the result of an increase in revenues of the Company’s franchisees, who collectively had revenues of $225.6 million during the fourth quarter and $908.9 million for the year, 5% and 8% increases over the comparable respective 2010 periods. For the fourth quarter of 2011 compared to the same quarter a year ago, same store revenue growth for franchised stores was basically flat, being down 0.1%; however, same store customer counts were up 4.6%. Our franchised stores had 552,000 customers at the end of the year, a 10% increase over the number at the end of 2010. Revenues and customers of franchisees, however, are not revenues and customers of Aaron’s, Inc.

The Company’s other revenues in the fourth quarters of 2011 and 2010 included $306,000 and $335,000 of gains, respectively, from the sales of Company-operated stores. Other revenues for the fiscal year included gains from the sales of stores of $3.0 million in 2011 and $1.9 million in 2010.

Store Count

During the fourth quarter of 2011, the Company opened 16 Company-operated Aaron’s Sales & Lease Ownership stores, 18 franchised stores, eight HomeSmart stores, and three RIMCO stores. The Company also acquired four stores from franchisees, seven stores were acquired from a third party operator and converted to HomeSmart stores, and one Company-operated store was sold to a franchisee. In addition, during the quarter the Company closed ten Company-operated stores and one franchised store.

For the 2011 year, the Company opened 51 Company-operated Aaron’s Sales & Lease Ownership stores, 55 franchised stores, 24 HomeSmart stores and six RIMCO stores. In addition, during the year 44 stores were acquired from third party operators and were converted to HomeSmart stores along with one Aaron’s Company-operated store. Aaron’s total net store count increased 7% for the year.

During the fourth quarter and fiscal year of 2011, the Company awarded area development agreements to open 17 and 68 additional franchised stores, respectively. At the end of December 2011, area development agreements were outstanding for the opening of 230 franchised stores over the next several years.

At December 31, 2011, the Company had 1,144 Company-operated Aaron’s Sales & Lease Ownership stores, 707 Aaron’s Sales & Lease Ownership franchised stores, 71 HomeSmart stores, 16 Company-operated RIMCO stores, and six franchised RIMCO stores. The Company also had one Aaron’s Office Furniture store. The total number of stores open at the end of 2011 was 1,945.

First Quarter and Full Year 2012 Outlook

The Company is updating its guidance for 2012 and expects to achieve the following at this time:

First quarter revenues (excluding revenues of franchisees) of approximately $570 million.

First quarter diluted earnings per share in the range of $.58 to $.62, assuming no significant store or asset sales.

Fiscal year 2012 revenues (excluding revenues of franchisees) of approximately $2.15 billion.

Fiscal year 2012 diluted earnings per share in the range of $1.88 to $2.04, unchanged from previous guidance.

Overall new store growth of approximately 5% to 7% over the store base at the end of 2011, for the most part an equal mix between Company-operated and franchised stores, and including a small number of HomeSmart stores. This will be a net store growth after any opportunistic merging or disposition of stores.

The Company will continue as warranted to consolidate or sell stores not meeting performance goals.

The Company also plans to continue to acquire franchised stores, convert independent operator’s stores to Aaron’s franchised stores, and sell Company-operated stores to franchisees as opportunities present themselves.

Conference Call

Aaron’s will hold a conference call to discuss its quarterly financial results on Friday, February 10, 2012, at 10:00 a.m. Eastern Standard Time. The public is invited to listen to the conference call by webcast accessible through the Company’s website,
www.aaronsinc.com , in the “Investor Relations” section. The webcast will be archived for playback at that same site.

Aaron’s, Inc., based in Atlanta, currently has more than 1,945 Company-operated and franchised stores in 48 states and Canada. The Company’s Woodhaven Furniture Industries division manufactured approximately $86 million, at cost, of furniture and bedding at 14 facilities in eight states in 2011. The entire production of Woodhaven is for shipment to Aaron’s stores.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: Statements in this news release regarding Aaron’s, Inc.’s business that are not historical facts are “forward-looking statements” that involve risks and uncertainties which could cause actual results to differ materially from those contained in the forward-looking statements. These risks and uncertainties include factors such as changes in general economic conditions, competition, pricing, customer demand and other issues, and the risks and uncertainties discussed under “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010. Statements in this release that are forward-looking include without limitation Aaron’s projected revenues, earnings and store openings for future periods.

Aaron’s, Inc. and Subsidiaries
Consolidated Statements of Earnings
(In thousands, except per share amounts)
(Unaudited) (Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2011 2010 2011 2010
Revenues:
Lease Revenues and Fees $376,827 $349,559 $1,516,508 $1,402,053
Retail Sales 8,066 7,778 38,557 40,556
Non-Retail Sales 117,806 108,332 388,960 362,273
Franchise Royalties and Fees 15,847 15,501 63,255 59,112
Other 4,943 3,259 16,769 12,853
Total 523,489 484,429 2,024,049 1,876,847
Costs and Expenses:
Retail Cost of Sales 4,581 3,985 22,738 23,013
Non-Retail Cost of Sales 107,027 99,189 353,745 330,918
Operating Expenses 226,129 206,239 872,248 824,929
Lawsuit Expense – – 36,500 -
Depreciation of Lease 135,327 124,525 550,732 504,105
Merchandise
Interest 1,686 681 4,709 3,096
Total 474,750 434,619 1,840,672 1,686,061
Earnings Before Income Taxes 48,739 49,810 183,377 190,786
Income Taxes 18,205 19,023 69,610 72,410
Net Earnings $30,534 $30,787 $113,767 $118,376
Earnings Per Share $.40 $.38 $1.46 $1.46
Earnings Per Share Assuming Dilution $.40 $.38 $1.43 $1.44
Weighted Average Shares 75,557 80,837 78,101 81,194
Outstanding
Weighted Average Shares 76,765 81,836 79,339 82,102
Outstanding Assuming Dilution

Selected Balance Sheet Data
(In thousands)
(Unaudited and Preliminary)
December 31, December 31,
2011 2010
Cash and Cash Equivalents $176,257 $72,022
Investment Securities 98,132 -
Accounts Receivable, Net 87,471 69,662
Lease Merchandise, Net 862,276 814,484
Property, Plant and Equipment, Net 226,619 204,912
Other Assets, Net 283,296 340,992
Total Assets 1,734,051 1,502,072
Senior Notes 137,000 24,000
Accrued Litigation Expense 41,720 1,677
Total Liabilities 757,497 522,655
Shareholders' Equity $976,554 $979,417

Use of Non-GAAP Financial Information:

This press release presents the Company's net earnings and diluted earnings per share excluding a charge of $36.5 million recorded in the second quarter of 2011 related to a previously announced lawsuit verdict against the Company, and associated legal fees and expenses, less the portion covered by insurance, as well as a $3.5 million of separation charge in the fourth quarter of 2011 related to the previously announced departure of the Company's former Chief Executive Officer. These measures are not presented in accordance with generally accepted accounting principles in the United States ("GAAP").

Lawsuit verdicts and related expenses of the magnitude experienced during the second quarter of 2011 are unprecedented in the Company's history, and the Company is in the process of seeking to reduce or overturn the verdict. The Company strongly believes that the verdict does not accurately reflect the evidence in the case. In addition, the court ruled on January 13, 2012 not to sustain the verdict in its current form and the Company is waiting for a detailed ruling regarding whether the court will order a new trial or reduce the jury's damages award beyond its initial reduction to $39.8 million. The fourth quarter separation charge related primarily to the accelerated vesting of restricted stock units and stock options previously granted to Company's former Chief Executive Officer.

While these adjusted items may not be considered as non-recurring in nature in a strictly accounting sense, management regards those items as infrequent and not arising out of the ordinary course of business. Management believes that presentation of net earnings and diluted earnings per share excluding these charges is useful because it gives investors supplemental information to evaluate and compare the performance of the Company's underlying core business from period to period. The lawsuit and separation adjustments involve matters that are not entirely susceptible to prediction or effective management, and consequently the Company believes presenting earnings measures excluding the effects of those matters can provide investors with additional data to assess the Company's performance. Non-GAAP financial measures, however, should not be used as a substitute for, or considered superior to, measures of financial performance prepared in accordance with GAAP, such as the Company's GAAP basis net earnings and diluted earnings per share, which are also presented in the press release.

Reconciliation of Net Earnings and Earnings Per Share Assuming Dilution to Non-GAAP Net Earnings Excluding Separation-Related Charge, Non-GAAP Net Earnings Excluding Lawsuit-Related Charge and Separation-Related Charge, Non-GAAP Earnings Per Share Assuming Dilution Excluding Separation-Related Charge, and Non-GAAP Earnings Per Share Assuming Dilution Excluding Lawsuit-Related Charge and Separation-Related Charge
(In thousands, except earnings per share)
(Unaudited) (Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2011 2010 2011 2010
Net Earnings $ 30,534 $30,787 $113,767 $118,376
Add Back Separation-Related Charge 2,191 - 2,191 -
Net of Taxes (1)
Non-GAAP Net Earnings Excluding 32,725 30,787 115,958 118,376
Separation-Related Charge
Add Back Lawsuit-Related Charge, Net of - - 22,645 -
Taxes (2)
Non-GAAP Net Earnings Excluding $ 32,725 $30,787 $138,603 $118,376
Separation-Related Charge and Lawsuit-
Related Charge
Earnings Per Share Assuming Dilution $.40 $.38 $1.43 $1.44
Add Back Separation-Related Charge .03 - .03 -
Non-GAAP Earnings Per Share Assuming .43 .38 1.46 1.44
Dilution Excluding Separation-Related
Charge
Add Back Lawsuit-Related Charge - - .29 -
Non-GAAP Earnings Per Share Assuming $.43 $.38 $1.75 $1.44
Dilution Excluding Separation-Related
Charge and Lawsuit-Related Charge
Weighted Average Shares 76,765 81,836 79,339 82,102
Outstanding Assuming Dilution
(1) Net of taxes of $1,341 calculated using the effective tax rate for the twelve months ended December 31, 2011.
(2) Net of taxes of $13,855 calculated using the effective tax rate for the twelve months ended December 31, 2011.

SOURCE Aaron's, Inc.

Copyright (C) 2012 PR Newswire. All rights reserved

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Feb. 17, 2012 2:08p

PRINCETON
Mercer County health officials announced Friday that a wounded raccoon had proven to be the countys second confirmed case of rabies this year.

This new case occurred at Mount Horeb Road near Princeton, Doris Irwin, RN, BSW said. The first case, involving a skunk, was found earlier this month at Hinton Road near Athens.

This is another one of those situations in which domestic pets were exposed, Irwin said. The good news this time is that they were up to date on their rabies vaccinations; however, there is an unexplained bullet hole that makes me concerned that there was another interaction with this rabid raccoon somewhere in the neighborhood.

A witness said the raccoon ran toward him first before it turned away suddenly and attacked his neighbors dogs, Irwin said. The dogs then killed the raccoon. She added that the gunshot wound appeared to be a recent injury.

It was inflamed, so it looked like it had been there for a day or so before it came to my attention, so there may be another pet or somebody I dont know about who could have been exposed and could be at risk for rabies.

Rabies is a fatal disease, but it can be stopped if a person receives treatment before any symptoms appear.

Thats why were asking anybody who has had an encounter to call us so we can assess their risk, Irwin said. Rabies is 100 percent preventable if it is treated before symptoms occurred. After you start getting the symptoms the pressure on the brain, paralysis, and meningitis-like symptoms then your chances of survival are extremely poor. Its almost always fatal at that point.

Anyone who believes they or their pets have had contact with the wounded raccoon should call the Mercer County Health Department to discuss their risk of contracting the disease. The phone number is 304-324-8367.

Victims of rabies may not see any symptoms for several weeks or even several years after being exposed. People usually start seeing signs of the disease one to three months after the virus infects them. The early signs of rabies can include fever or headache, but this changes quickly to signs such as confusion, sleepiness or agitation.

Local health officials recommend that residents make sure their pets are vaccinated. Rabies shots are required every three years under West Virginia law. The vaccine is usually given to pets when they are four to six months of age. Pet owners should check with their veterinarian if they are unsure if their dogs and cats have up-to-date vaccinations.

Residents are advised not to feed their pets outdoors. Food left outside attracts wild and stray animals. Pet doors should be closed off because several rabid animals have entered Mercer County homes through those openings. People should also avoid feeding stray dogs and cats unless they plan to adopt the animals and have them vaccinated.

Contact Greg Jordan at gjordan@bdtonline.com

Starwood Hotels and Resorts, with brands including Le Meridien and Westin, is expecting further growth in rates and occupancy in its properties in Dubai this year.

In the fourth quarter of last year, the hotel group experienced a 12 per cent increase in revenue per available room in its 15 Dubai properties over the same period a year earlier, it reported

We anticipate that [growth] will continue this year and we will build on the momentum, said Guido de Wilde, the senior vice president and regional director for Starwood Hotels and Resorts in the Middle East. We believe there is enough demand coming into the market to further build on occupancies and to further build on rates.

Hotel performance fell sharply in Dubai in 2009 and 2010 amid the global economic crisis.

But unrest elsewhere in the region, affordability and airlines opening new markets are helping hotels to bounce back.

This does not necessarily come as a surprise for Dubai, as you see the growth in what is driving the business into Dubai, said Mr de Wilde. If you look at Emirates Airline and all of the new destinations they are bringing on board, every single new destination they are adding on to their network is bringing new customers in. I can tell you, now opening up Rio de Janeiro, just today I got a group booking from Brazil for Al Maha. We didnt have that type of business before.

The second thing is that after the crisis, rates in Dubai became much more affordable. Then its location, its hub, people travelling from all over the world, transiting through Dubai, then all the authorities trying to keep that traveller who transits through Dubai in Dubai. All these efforts are paying off.

Hotels in the emirate have reported a strong start to the year, with events such as the Dubai Shopping Festival, the Arab Health conference and good weather bringing in tourists and business travellers.

Kempinski Hotel Mall of the Emirates said that during this years Dubai Shopping Festival, which ran for most of last month, it experienced an increase in occupancy on a 20 per cent higher average room rate compared with the same period last year.

rbundhun@thenational.ae

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