Rent-to-Own

High Touch, Special Olympics team up this weekend

More than 400 athletes from around the state will gather in Wichita July 30 thru August 1 for the annual Special Olympics Kansas State Softball and Golf Tournament.

This is the second year the Tournament will be played in Wichita.  High Touch, Inc. is the presenting sponsor and has been working on planning the logistics of the Tournament since January.  This annual event is part of High Touch’s corporate stewardship program, which facilitates the company’s commitment to the local community in which its employees live and work. 

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More than 400 athletes from around the state will gather in Wichita July 30 thru August 1 for the annual Special Olympics Kansas State Softball and Golf Tournament.

This is the second year the Tournament will be played in Wichita.  High Touch, Inc. is the presenting sponsor and has been working on planning the logistics of the Tournament since January.  This annual event is part of High Touch’s corporate stewardship program, which facilitates the company’s commitment to the local community in which its employees live and work. 

More than 100 High Touch volunteers will fan out across Cessna Activity Center and Plainview City Fields where they will spend their days serving lunches, keeping score, umpiring games, and most of all encouraging Special Olympics athletes.

“At High Touch, we feel it is important to be active participants in the community and giving back through efforts such as this is one of those initiatives,” said Wayne Chambers, High Touch president and CEO.  “Each year High Touch employees look forward to the Special Olympics Tournament, and I’m proud of them for taking the time to assist with in this cause.”

Chambers also noted that High Touch employees have raised enough money to support the success of the Tournament.  As High Touch joins Special Olympics Kansas in celebrating 40 years of hugs, cheers and inspiration, they will provide each athlete a commemorative t-shirt, water bottle and bracelet at Opening Ceremonies Saturday morning.

“High Touch employees have really stepped up to the plate to facilitate this Tournament from start to finish,” said Tim Rehder Special Olympics Kansas, SR. VP Sports & Competition. “They have raised the bar to ensure this event is memorable for our athletes.”

Tournament Details

• Golf will be played at Sierra Hills Golf Club with a shotgun start at 5:00 pm July 30
• Opening Ceremonies begins at 7:55 at Cessna Activity Center July 31
• The softball competition follows Opening Ceremonies at 9:00 am July 31 at Cessna Activity Center (2744 George Washington Blvd., Wichita, KS 67210) and Plainview City Fields (2819 Fees, Wichita, KS 67210)
• Individuals and businesses are encouraged to “Be A Fan” by attending the Tournament and support the athlete.
• Herman Lammers with Lakemary STARS will be the oldest athlete playing; at age 63 he will be on a Coach Pitch softball team

                             

Mike Shuler and Heath Peters

Mike Shuler and Heath Peters opened their second Premier store in Nebraska this summer in Hastings.

The partners have branched out from their successful Kearney location, which was opened in November 2008 and has done “incredibly well” according to Shuler.

With 26 years of combined service to the Central Nebraska rental market, Shuler and Peters agree a second store was inevitable and may be followed by a third down the road. “The first one wasn’t enough,” said Shuler.

“I knew a lot about the business, but I didn’t know how to start a business," Peters said. "I was scared to start out on my own. Mike was thinking the same thing and approached me to see if I was interested. I had read about Premier Rental-Purchase in RTO Magazine and they seemed like a place to start for the support we needed. I also read success stories about Premier franchisees and watched every podcast I could get my hands on from the RTO website.

“I made the decision after speaking with Trooper that this was my calling – to be an entrepreneur. Trooper explained all of the benefits provided by Premier such as the human resource services, legal counsel, accounting support, and the lending assistance that is available. I spoke to numerous Premier dealers who had walked down the road with Trooper, and I was convinced. The common statement throughout was ‘you will love being on your own. It’s indescribable compared to working for a big corporation.’ So we signed on.”

Shuler says. “Here I had been doing rental-purchase for 20 years, and I finally broke off on my own. I have had a great partner to go forward with, and it clearly has been the right decision. I enjoy getting up every day and being able to have a positive impact on the lives of others around me. I love the industry and most importantly I love seeing people grow. I have the opportunity to impact the lives of many around me on a daily basis, both customers and employees, and there is no greater experience.”

Shuler and Peters look forward to new success with the Hastings store. “We have been affiliated with that market since 1998,” says Shuler, “and we are particularly excited about partnering up with our manager, Craig Shafer. Both Heath and I have worked with Crain in the past, and he is a very seasoned rent-to-own manager. Great market. Great team. This should be another home run.”

Gary Ferriman presents Mike Tissot with the "Battle of Ohio" trophy in their periodic company competition to gain customers.

Gary Ferriman of Showplace Rent to Own recently awarded Mike Tissot of Countryside Rent to Own the "Battle of Ohio" trophy in their periodic race for customers in the Buckeye State.

In the most recent store-to-store customer growth contest held the last week of June, Countryside gained more customers per store and gained full bragging rights. Additionally, Countryside employees gained some deliciously grilled new York strip steaks prepared by Ferriman.

The ongoing friendly grudge match for Ohio’s $285 million RTO market began in 2008 with a challenge from Tissot at a Showplace employee appreciation day. The ongoing contest happens a couple times with Countryside and Showplace regularly trading victory speeches and grilling aprons.

"This time the trophy came to southern ohio and the steaks are better when they are paid for and cooked by someone else," Tissot said.

The Associated Press recently reported that the rapid sales of new gadgets such as Apple’s iPad and Amazon.com’s Kindle have prompted an industry trade group to raise its projections for sales to retailers to $174.9 billion.

The Consumer Electronics Association said Thursday that revenue for electronics manufacturers is projected to grow 3 percent over last year, up from its previous estimate of growth of 0.3 percent. The new forecast is $9 billion higher than the previous one. Industry shipment revenue is expected to hit a new high of more than $182 billion by 2011.

Shoppers are responding to new products such as tablet computers and 3D displays, said trade group president and CEO Gary Shapiro. Other hot categories include smartphones, Blu-ray players and e-readers.

The group raised its forecast because the new categories of products are growing so quickly, said Steve Koenig, director of industry analysis.

"We see a stronger second half demand unfolding, and we anticipate a robust holiday quarter," he said in a news release.

Mobile computing is expected to lead the industry by 2011. The category, which includes laptops, tablets and netbooks but not smartphones, will reach more than $26 billion in shipment revenue by next year. Much of that growth will come from tablets such as the iPad as more companies try to duplicate its success.

Home Express Sales and Lease announces the Grand Opening of the newest location in New Albany, Indiana.  The grand opening celebration is scheduled from Saturday July 31st at 10:00 am at 2325 Green Valley Road, at the corner of Green Valley and Daisy Lane.
 
Home Express Sales and lease is a local chain of retail stores offering an exciting new way to shop.  “Our Radcliff store introduced the new concept just a few months ago in May to offer both a retail and a lease-to-own option to our customers,” explains Chris Caprio, President and CEO of KHF Holdings LLC, the parent company of Home Express Sales and Lease LLC.

“After seeing a great response and success in our Radcliff store we decided to bring this revolutionary concept to the New Albany area," Caprio said. "However, our New Albany location will offer a larger showroom [roughly 14,000 square feet] and showcase larger quantities of the products we sell.”
 
The “Express Value Rooms” concept launched in Radcliff, KY on May 8th, 2010 and it was quickly decided a second location must open.  The new store offers customer an entirely new way to shop – showcasing a wide selection of furniture items with one low price and a display that allows customers to easily create room groups. 

With Home Express Value Rooms, all sofas, bedroom groups, dinettes, accessories, TV stands and more are available for the same price in each category.  A unique floor display makes it easy for customers to mix and match to create their own room look.  With Express Value Rooms, customers can build an entire room for the price others charge for a single sofa.

“The Home Express model has something to offer everyone. Customers without the option of credit can still enjoy the items they want for their family and those customers looking to make a retail purchase will be amazed at the savings we can offer over the “big box” stores,” explains Caprio.
 
Home Express offers the option to lease furniture items, appliances and electronics.  Caprio shares: “Our Company’s foundation is based on giving customers access to the products they want for their home, regardless of credit.  Now we combine lease-to-own options with affordable retail goods.  This gives a credit challenged customer more to choose from and great selection of furniture for any value conscious shopper.”
The Grand Opening celebration begins 10:00 am on July 31st with a day full of free food, fun, activities and giveaways.

KHF Holdings LLC is based in Louisville, Kentucky and is the parent company of Home Express Sales and Lease LLC, which operates eight company stores and manages one licensee location.  Current locations include Jeffersonville and now 2 locations in New Albany, Indiana; Jeffersontown and Greenbelt in Louisville, KY; Somerset, KY; Shelbyville, KY; Shepherdsville, KY; and Radcliff, KY.  KHF Holdings is also the licensee of four Ashley Furniture HomeStores in Louisville and Indianapolis and an Ashley Furniture Distribution Center.
 
 
 

Rent-A-Center, this week announced revenues and earnings for the quarter ended June 30, 2010.
 

Total revenues for the quarter ended June 30, 2010, were $671.5 million, a decrease of $8.1 million from total revenues of $679.6 million for the same period in the prior year. This decrease in revenues was primarily attributable to the November 2009 divestiture of dPi Teleconnect, LLC, the Company’s subsidiary engaged in the prepaid telecommunications and energy business, which had contributed approximately $14.0 million in merchandise sales for the quarter ended June 30, 2009. Same store sales for the quarter ended June 30, 2010, increased 0.1%.

For the quarter ended June 30, 2010, net earnings increased approximately 14% to $47.8 million from $41.9 million for the same period in the prior year, and net earnings per diluted share also increased approximately 14% to $0.72 from $0.63 in the prior year period. Net earnings and net earnings per diluted share for the quarter ended June 30, 2009, increased as a result of $1.9 million in pre-tax litigation credits, or approximately $0.02 per share, related to the Hilda Perez matter as discussed below.

Net earnings per diluted share for the quarter ended June 30, 2010, increased approximately 18% to $0.72, as compared to adjusted net earnings per diluted share of $0.61, when excluding the pre-tax litigation credit above, for the quarter ended June 30, 2009.

"We are pleased with our results in the second quarter, having exceeded our earnings guidance by improving the margins on our inventory and continuing our expense management initiatives," said Mark E. Speese, the Company’s Chairman and Chief Executive Officer. "We remain focused on attracting a variety of customers with our strong product values, while continuing to improve our margins and are cautiously optimistic regarding the balance of the year. This gives us the confidence to increase the lower end of our 2010 earnings guidance from $2.60 to $2.65 and maintain the upper end at $2.80."

Six Months Ended June 30, 2010 Results

Total revenues for the six months ended June 30, 2010, were $1.390 billion, a decrease of $18.0 million from total revenues of $1.408 billion for the same period in the prior year. As described above, this decrease in revenues was primarily attributable to the November 2009 divestiture of dPi Teleconnect, LLC, which had contributed approximately $28.0 million in merchandise sales for the six months ended June 30, 2009. Same store sales for the six months ended June 30, 2010, declined 0.1%.

Net earnings and net earnings per diluted share for the six months ended June 30, 2010, were $99.3 million and $1.49, respectively, as compared to $87.3 million and $1.31, respectively, for the same period in the prior year. Net earnings and net earnings per diluted share for the six months ended June 30, 2009, increased as a result of $4.9 million in pre-tax litigation credits, or approximately $0.04 per share, related to the Hilda Perez matter as discussed below.

Net earnings per diluted share for the six months ended June 30, 2010, increased approximately 17% to $1.49, as compared to adjusted net earnings per diluted share of $1.27, when excluding the pre-tax litigation credit above, for the six months ended June 30, 2009.
 

Aaron’s this week announced revenues and earnings for the three and six months ended June 30, 2010.

For the second quarter of 2010, revenues increased 7% to $445.0 million compared to $417.3 million for the same quarter a year ago. Net earnings from continuing operations were down 12% to $24.4 million versus $27.8 million in 2009. Diluted earnings per share were $.30 compared to $.34 per share a year ago, a 12% decrease.

For the first six months of this year, revenues increased 5% to $940.3 million compared to $891.3 million for the first six months of 2009. Net earnings from continuing operations were $61.4 million versus $63.2 million last year. Diluted earnings per share for the first six months were $.75 for 2010 versus $.77 in 2009.

 
As previously announced on June 29, 2010, the Company is ceasing the operations of its Aaron’s Office Furniture division. During the second quarter, the Company closed all but four of its Aaron’s Office Furniture stores and plans to close the remaining stores by September 30 of this year.

The above mentioned financial results include charges to second quarter operating expenses of $7.1 million, or $.05 per diluted share, relating to the closure of this division. These charges include the write-down and cost to dispose of all office merchandise, estimated future lease liabilities of closed stores, the write-off of leaseholds, severance pay, and other associated costs of closing the stores and the division. Another approximately $2.5 million of charges, or approximately $.02 per share, is expected to be incurred during the remainder of fiscal year 2010.

"The results for the quarter were in line with our current guidance, and closing the office furniture stores is a positive going forward, as we will now be able to concentrate all our efforts on our proven and growing Aaron’s Sales & Lease Ownership business," said Robert C. Loudermilk, Jr., President and Chief Executive Officer of Aaron’s. "Although revenue growth has slowed somewhat in recent months, our sales and lease ownership business continues to grow in revenues and numbers of customers, and our plans to open additional stores are unchanged. The current business environment remains difficult with continued high unemployment and general uncertainty in the marketplace. We are confident, however, that our 55th year of operations will be another record year for the Company."

Same store revenues (revenues earned in Company-operated stores open for the entirety of both periods) increased 2.4% during the second quarter of 2010 compared to the second quarter of 2009. Same store revenues increased 1.1% for Company-operated stores open over two years as of June 30, 2010.

The Company had 859,000 customers and its franchisees had 465,000 customers at the end of the second quarter of 2010, an 11% increase in total customers over the number at the end of the second quarter a year ago (customers of our franchisees, however, are not customers of Aaron’s, Inc.). The customer count on a same store basis for Company-operated stores was up 5.6% in the second quarter compared to the same quarter last year.

At June 30, 2010, the Company had cash on hand of $85.3 million. Recently the Company reacquired 478,805 shares of Common Stock and has the Board of Director’s authorization to purchase an additional 5,401,815 shares.
 

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The national economy is making a comeback, but there are many long days ahead.  Where can a small business investor turn?  The Association of Progressive Rental Organizations (APRO) is group of small business owners that believe in rent-to-own programs.  These programs offer a small business investor an opportunity to help the economy using proven rent-to-own programs.

What is a rent-to-own program?  Just three types of items that rent-to-own centers offer their homeowners:

Why is a rent-to-own business a solid investment for the small business investor looking for a new program to offer customers?  Three simple reasons:

1. Excellent support from APRO
2. Useful small business to local community
3. Rental programs that makes sense

The rent-to-own programs offered by APRO’s members to local customers are very sensible because APRO helps its members put together easy to follow rental contracts.  This is because APRO has an excellent legal team and knowledge of national and state laws; plus, APRO knows how to help the small business owner with local laws and codes.  This legal support to the members of APRO makes their investment into rent-to-own programs wiser.

This wisdom continues with the way APRO helps investors decide which type of business to open.  By consulting with other members that are part of APRO, a small business investor can determine which type of rent-to-own business to open.  It is this support from other members that really solidifies this small business investment.

If you are a small business investor looking to start a new business that you will make you proud while helping the economy, you need to look to APRO to start a rent-to-own program in your town.