NEWSLETTERS

NEWSLETTERS - Rent-A-Center Q4 results released

NEWSLETTERS
Rent-A-Center Q4 results released
 
Rent-A-Center, the nation's largest rent-to-own operator, today announced revenues and earnings for the quarter and year ended Dec. 31, 2010.

Total revenues for the quarter ended December 31, 2010, were $677.1 million, an increase of $4.2 million from total revenues of $672.9 million for the same period in the prior year. This increase in revenues was primarily due to a $5.5 million increase in rentals and fees revenue driven by the RAC Acceptance business.

Same store sales for the quarter ended December 31, 2010, excluding financial services revenue, were flat.

Net earnings and net earnings per diluted share for the three months ended December 31, 2010 were $31.9 million and $0.49, respectively, as compared to $43.7 million and $0.66, respectively, for the same period in the prior year.
Net earnings and net earnings per diluted share for the three months ended December 31, 2010 were impacted by the following significant items, as discussed below:

  • An $18.9 million pre-tax impairment charge, or approximately $0.19 per share, related to the discontinuation of the financial services business; and
  • A $3.1 million pre-tax financing expense, or approximately $0.03 per share, related to the repayment of $200.0 million of term loans under the Company's senior secured credit facilities.

Collectively, these items reduced net earnings per diluted share by approximately $0.22 in the fourth quarter of 2010.When excluding the items above, adjusted net earnings per diluted share for the three months ended December 31, 2010 were $0.71, as compared to net earnings per diluted share for the three months ended December 31, 2009 of $0.66, an increase of 7.6%.

"We had excellent results in the fourth quarter," said Mark E. Speese, the Company's Chairman and Chief Executive Officer. "In our core rent-to-own business, customer demand remained strong with our best gain in customer agreements in years and improvement in our margins with our continued focus on expense control," Speese said.

"As to our growth initiatives, we accelerated the expansion of our RAC Acceptance business with the acquisition of 158 kiosk locations from The Rental Store and have more than doubled our expected 2011 kiosk openings. We also successfully entered the Mexico market with the opening of five stores during the fourth quarter. In addition to these growth initiatives, we anticipate expanding in Canada, testing other retail concepts and investing in technology in an effort to continue to improve the top line and drive additional efficiencies," Speese concluded.

Full release here.
 



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RTOHQ: The Magazine
RTOHQ: The Magazine is the Association of Progressive Rental Organizations' award-winning rent-to-own industry magazine, and it's available here.

CLICK HERE FOR OUR DIGITAL RTOHQ: THE MAGAZINE

 

RTOHQ: The Magazine’s upgraded digital format

APRO's new, mobile-ready magazine is now available in addition to our print edition. The digital format provides the same informative content as our printed magazine, but also offers tools to make the reading experience more enriching. Access the table of contents page with one click or tap. Get additional information from advertisers by clicking on the links in their ads. The interface is easy to navigate and requires no special app—read our magazine on your computer, digital table or smartphone. Click here to access the digital version of RTOHQ: The Magazine March-April 2012.

 

 

A New Rent-to-Own Experience

by Neil Ferguson

Here’s the lowdown on APRO’s 2012 Convention and Trade Show, July 24-26 in Memphis. The RTO industry’s big event will offer many valuable experiences, including insights on how to turn your stores into “experiences”–the good kind for consumers

 

Who Is Your Competition?

by Bill Keese

In order to expand your customer base, you can learn a lot by observing your competitors. But first, you need to figure out just who they are. If you think your only competition is the rent-to-own store down the street, you’re not considering the bigger picture. APRO’s executive director offers a big-picture perspective.

 

A Review of Online Customer Complaints

by Ed Winn III

While rent-to-own companies have not cornered the market on negative reviews posted on consumer complaint websites, it’s no surprise that there are cyberspace beefs against RTO. APRO’s general counsel reviews some of them in search of a pattern and he considers appropriate response to online complaints.

 

Rent-to-Own Families, Part VIII

by Kristen Card

Our series of family-run rent-to-own businesses continues with profiles of the Homeiers in Kansas and two Texas-based sets of kindred colleagues, the Spangles and the Weisblatts.

 

 

Future issues of APRO's magazine will be available in this same new format. Click here to access past issues that are not yet archived in the new interface.

 

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