Rental Viewpoint | August 25, 2005

APRO's 2005 Convention offers a
sparkling silver celebration
++The APRO 2005 Convention and Buying Show at Mandalay Bay in Las Vegas was a resounding success as new and seasoned members celebrated APRO’s 25 years as the national trade association for the rent-to-own industry. This year, nearly 600 rental dealers and more than 300 exhibitors came together to purchase and sell an APRO record of nearly $14 million in product. In addition, dealers attended educational seminars on a range of issues, including customer service, generating store traffic, growing with bank financing and the latest digital display technology.
++The convention kicked off at the general session with a keynote by Larry Winget who inspired everyone to take responsibility for his/her own success. The RTO Customer of the Year and Employee of the Year, Johnnie Bradford and Paul Russell respectively, were recognized, APRO's past was highlighted in video presentations throughout the meeting and attendees enjoyed a walk down memory lane at the APRO Museum in the exhibit hall.
++Of course, it wasn’t all work and no play. Rental dealers met and mingled at the welcome reception, danced the night away at the Rain at the Palms night club and chuckled with Joan Rivers at the "APRO Tonight Show" Awards Banquet as she “interviewed” several rental dealers.
++If you attended the 2005 APRO Convention and Buying Show, please take a few moments to complete the online survey to let us know how we can further improve the event in the years to come.
++Everyone is looking forward to another great convention August 3-6, 2006, at the Gaylord Palms Resort in Orlando, Florida.

Survey says...
++Good news from the 2005 Rental-Purchase Industry Survey—the rental industry continues to grow. According to the latest survey, rent-to-own is now a $6.6 billion industry, an increase of $400 million from last year. The industry has nearly doubled its size with a 10-year steady increase from $3.8 billion in 1995 to its recently calculated $6.6 billion.
++On the other hand, the 2.7 million customers the rent-to-own industry served in 2004 reflect the same number of customers as in 2003 and 1995. The survey shows a significant decrease from the 3.3 million customers the industry served in 1999.
++As in previous years, furniture dominates the overall inventory of products distributed by the industry with 38 percent of units on rent. Appliances remain steady at 23 percent and electronics had a slight decline over the past five years to 22 percent. This is the first year that appliances have surpassed electronics in the rent-to-own product distribution mix. Computers still hover around 5 percent, a slight increase from five years ago.
++The most significant finding from the survey is the statistical presence of tires and wheels in the product distribution mix. In this first year of inclusion on the survey, tires and wheels represent 4.7 percent of products on rent. The first presence of tires and wheels—reflecting the same penetration as computers and HDTVs—indicates that the rent-to-own business is enjoying significant growth with these new products.
++Each year, APRO commissions the survey research firm Industry Insights to conduct the Rental-Purchase Industry Survey. A copy with a five-year comparison is available to APRO members only and is free to members who participate in the survey; otherwise, the cost is $300 for non-participating APRO members.

Wisconsin legislative
campaign continues
++Two recent legislative hearings and 33 Wisconsin state senate and assembly members began Wisconsin's latest legislative debate regarding the definition and regulation of the rent-to-own industry in Wisconsin.
++Wisconsin is one of three states without a state rental-purchase statute. As a consequence, rent-to-own customers have been severely under-served in the state as industry dealers must operate under the rules for credit sales established in the Wisconsin Consumer Act.
++Senate Bill 268 and Assembly Bill 587 were presented before their respective committees on August 9 where APRO member Jeff Lebakken flew in from APRO's convention to testify before each committee then hopped back on a plane to return to Las Vegas.
++Both committee hearings drew a substantial number of groups speaking on behalf of—and in opposition to—the state's proposed rent-to-own legislation. The American Association of Retired Persons and Wisconsin's Public Interest Research Group were two of the half-dozen groups that spoke against the bill. Articles both pro and con have also been published throughout the state regarding the bills and the rent-to-own industry (see "RTO in the news" links).
++Votes from both committees are expected in September and floor votes are then expected shortly thereafter. Wisconsin's legislative session ends on December 31, 2005.

Midwest RTO Expo held in Columbus
++Ohio rental dealers held their second successful Midwest RTO Expo at the Columbus Convention Center, August 23 and 24. Ohio Rental Dealers Association president Mike Tissot estimated that there were more than 250 people in attendance at the two-day expo. The group played golf August 23, followed by a welcome reception that evening. August 24 was a full day of trade show and training sessions. There were more than 40 vendors in the exhibit hall and rental store employees had several hours to view products and meet with vendors.
++In addition to the special events and trade show, there were four training sessions. The first session was a panel of appliance vendors fielding questions about the latest technology in white goods. The second session was about furniture repair, presented by Furniture Answers.
++Keynote speaker Hal Becker, who had spoken at the first Midwest RTO Expo last year, was so well received then that he was invited back this year. Becker, author of several books on sales, including the bestseller At Your Service, gave a stirring talk about being a better seller.
++After lunch, Ed Winn, APRO's general counsel, gave a seminar on recent developments in laws and strategies involving collections. At the final seminar of the day, Becker presented some hard-core customer service training.
++Ernie Lewallen of UHR Rents thought that the number of furniture dealers was down a little compared to last year's expo because of the time proximity to the Tupelo Furniture Show. Overall, however, Lewallen was pleased with the turnout at the second Midwest RTO Expo.

Aaron Rents announces
new franchise loan facility
++Aaron Rents announced in August a new franchise loan facility with financing from Royal Bank of Canada, Canada's largest bank as measured by assets. This facility will provide inventory financing to the company's growing number of Canadian franchisees.
++"We are excited with the prospects of our expanding Aaron's Sales & Lease Ownership franchise program in Canada," says R. Charles Loudermilk Sr., chairman and chief executive officer of Aaron Rents. "This facility will provide inventory financing essential to the growth of our existing and future franchised stores."
++Aaron Rents opened its first Canadian franchised store in Kitchener, Ontario, in November 2003 and since then has opened stores in Pickering, Cambridge and Hamilton, Ontario, as well as Halifax, Nova Scotia. The company has area development agreements with franchise operators for an additional 13 stores to be opened over the next several years.
++Aaron Rents currently has more than 1,124 company-operated and franchised stores in 46 states, Canada and Puerto Rico. The company also manufactures furniture, bedding and accessories at 10 facilities in four states.

Rent-n-Roll to open stores
in five new states
++Rent-n-Roll announced recently that two new market development agreements have been signed to install 20 stores in five new states.
++In Oregon, Joe Brandes and David Griffey will be developing six Rent-n-Roll Custom Wheels and Tire stores. Longtime rent-to-own veteran Geron Vail, along with partners David Harrison and Don Parker, will be developing Rent-n-Roll stores in Arkansas, Oklahoma, Kansas and Missouri.
++In other Rent-n-Roll news, John Spangle recently opened his second location in Houston and stores three and four are under construction in Texas. Tony Raffo opened his second Rent-n-Roll store in Columbia, South Carolina.
++"With current agreements, we have 147 stores under contract and we expect to have 37 stores open by the end of 2005," says Vince Ficarrota, Rent-n-Roll's vice president of franchising.

Whirlpool and Maytag sign
definitive merger agreement
++Whirlpool and Maytag signed a definitive merger agreement on August 22 in which Whirlpool will acquire all outstanding shares of Maytag in a cash and stock merger valued at $21 per share.
++The board of directors of Maytag has approved the merger agreement with Whirlpool and intends to recommend to Maytag's shareholders that they adopt the agreement.
++Ralph Hake, Maytag chairman and CEO, says, "This combination brings together two leading organizations with strong traditions in quality and customer satisfaction. Together, Whirlpool and Maytag will bring substantial benefits to consumers around the world, as well as to shareholders and customers."
++"Overall, this transaction will translate into better products, quality and service, as well as efficiencies, which will enhance our ability to succeed in the increasingly competitive global home-appliance industry," says Jeff Fettig, Whirlpool chairman and CEO. "We remain highly confident that we will receive regulatory clearance for this transaction in a timely manner."
++Click here for more information.

Rent-A-Center steps up
stock buyback plan
++Rent-A-Center announced on August 22 that its board increased its stock repurchase plan to $400 million from $300 million.
++The nation's largest rent-to-own operator said it has repurchased about 10.8 million shares to date, for roughly $285.6 million in cash, under the plan. For the year to date, the company said it bought back 2.3 million shares for about $48 million in cash.
++The company has about 74.8 million shares outstanding.

Missouri Rental Dealers Association "Heartland of America" regional trade show, September 12-14, Osage Beach, MO, 573/442-2963
High Touch User’s Conference, September 21-23, Wichita, KS, 316/831-8132
TRIB Group fall board meeting, September 27-28, 2005, Atlanta, GA, 770/451-4302
Florida Rental Dealers Association annual meeting; Norman “Slats” Golf Memorial and Vendor Appreciation Dinner and Trade Show, October 4 and 5, 813/623-5461, ext. 110
APRO fall board meeting, October 10-12, Austin, TX, 800/204-2776
Arkansas Rental Dealers Association fall conference, October 18 and 19, Petit Jean State Park, Morrilton, AR, 870/910-0059
High Point Furniture Market, October 20-26, High Point, NC, 336/888-3700
SEMA (Specialty Equipment Market Association), November 1-4, Las Vegas, NV, 909/396-0289
Click here to view the APROVision industry calendar of events

New APRO board members elected
++At the annual meeting of the APRO membership held during the 2005 Convention and Buying Show, the eight candidates listed below were elected to the APRO board of directors. These board members, who will serve staggered, two-year terms, joined the other board members—who were elected last year and are now serving the second year of their two-year terms—at a board meeting held during the convention at which time APRO's 2005-06 officers were elected. The new officers are:

President: Shannon Strunk, Babers, Pascagoula, Mississippi
First vice president: Ernie Lewallen, UHR Rents, Cincinnati, Ohio
Second vice president: Larry Carrico, SKC Enterprises Inc., dba Rent One, Mt. Vernon, Illinois
Secretary: David P. David, Full-O-Pep Appliances, Bloomington, Indiana
Treasurer: Terry Beville, Buddy's Home Furnishings, Tampa, Florida

The newly elected board members are:

Larry Carrico, SKC Enterprises Inc., dba Rent One, Mt. Vernon, Illinois
David P. David, Full-O-Pep Appliances, Bloomington, Indiana
Larry Goad, Zion's Rental Purchase, Harrogate, Tennessee
Ernie Lewallen, UHR Rents, Cincinnati, Ohio
Kevin Quinn, KLQ Enterprises, dba Quality Rentals, Tacoma, Washington
John Raines, Raines Investment Group, dba Aaron's Sales and Lease Ownership, Ashburn, Georgia
Shannon Strunk, Babers, Pascagoula, Mississippi
Mark Windsor, National TV Sales and Rentals, Lebanon, Missouri
Ellison Crider (vendor liaison), RSSS, Corpus Christi, Texas

2005 APRO golf tournament winners
++APRO golfers enjoyed a beautiful day on the links at the Las Vegas Paiute Golf Resort's Sun Mountain course on August 8 for the 2005 Tom Kitchens/Joe Eason Golf Tournament. Participants who took home top honors were:

First-place team: David Belt, James Belt, Michael Belt and John Broyles
Second-place team: Terry Hepler, Frank Kopecke, Reid Sutton and Dan Van Sickle
Third-place team: Lee Brady, Bob Freitag, John Rogers and Mike Tissot
Fourth-place team: Scrib Dailey, Jeff Lebakken, Mark Peterson and Paul Shike
Fifth-place team: David Bradlaw, Kenny Chapman, Peter McDevitt and Eric Weber
Closest to the pin: Chet Williams and Mike Little
Longest drive: Eric Weber
Most accurate drive: Richard Rose

++Thanks to Whirlpool for being this year's golf tournament sponsor once again.

++The following rental companies and individual vendors joined APRO in July 2005.

David Reed, DKR Enterprises Inc., dba Progressive Rental, Temecula, California
Tony Thompson, First Choice Rent To Own, Spartanburg, South Carolina
Galen Martin, Good Shepherd Rentals, Myerstown, Pennsylvania
Michael Kent, Kent Enterprises LLC, dba Rent-N-Roll, Boynton Beach, Florida
Les, Scott and Nick Pearsey, Pearsey Enterprises Inc., Bakersfield, California
Jerry Smith, SGS Enterprises, Flint, Michigan
Rick Vadnais, Syracuse Rental Systems Inc., dba Premier Rental Purchase, Syracuse, New York
John Abbott III, USA. Rent To Own, Pell City, Alabama

Visit the APRO Web site or call the APRO office at 800/204-2776.

August 25, 2005
Volume 4, Issue 17

PUBLISHED BY APRO
1504 ROBIN HOOD TRAIL
AUSTIN, TX 78703
800.204.2776
APROVISION.ORG

» Don't exempt rent-to-own industry

» Man flees after trying to rob RTO business

» There's a political scandal waiting with predatory lending

» Rentcash, The Brick form RTO alliance

» Badcock opens rent-to-own pilot store

» Bill would ease restrictions on rent-to-own stores

» Rent-to-own regulation merits support

Have a question or concern? Call APRO at 800/204-2776; or e-mail Shellie Faught.

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APRO: Always There