Rent-to-Own

Bob Whip, president of Inner Balance Wellness shows off one of his Zero Gravity Chairs at Las Vegas Market Tuesday.

Inner Balance is offering the sensation and benefits of "weightlessness" with it’s Zero Gravity chair, which utilizes NASA research to promote the body’s natural resting position — the exact position the human body assumes when suspended in zero-gravity conditions.

The chairs, once fully reclined via an electric keypad, afford exceptional relief from lower back stress while also placing the heart on an equal plane with the body’s mass, thereby minimizing the effort required to pump blood through the body.

The chair, and other massage products, will be featured at the upcoming Nationwide and APRO shows and must be experienced to be fully appreciated.

"We like selling stuff that addresses people’s health and think the product would fit really well into RTO," said Bob Whip, president of Inner Balance Wellness.

Formerly the head of Horizon Fitness — a maker of exercise equipment — Whip said the transition to wellness was a natural for him.

For more information go here.

Countryside’s Mike Tissot and APRO’s Cindy Ferguson showing off Coaster’s Phoenix Collection.

Countryside R2O owner Mike Tissot knows what his customers like: A whole lot of practicality wrapped in style.

"Our customers and our salespeople love the functionality of Coaster’s Phoenix Collection," Tissot says. "Whenever you add bells and whistles onto a functional product we love it."

Tissot is talking about the ample under storage and "in-bed" drink holders that are part of the collection’s bedding packages.

Larry Furiani calls the Phoenix Collection Coaster’s most popular.

For more information go here.

Brian Akchin, president and CEO of Englander

Fraenkel, a ‘Made in America’ furniture supplier that carries Englander and Advantage bedding and upholstery lines, will roll out its new ‘Rental Specialty’ program at the Tupelo Furniture Market later this month.

The program is designed to allow dealers to custom design their orders allowing dealers to mix and match fabrics and bedding lines to meet their needs.

"It’s exciting to be introducing our American-made motion upholstery that is cut, sewn and built in Mississippi through our new RTO Bedding Program," said Brian Akchin, president and CEO of Englander.

Fraenkel is a TRIB Approved vendor that will be exhibiting at the APRO Convention in Memphis this summer.

For more information go to www.fraenkel.com

American Furniture Manufacturing President Lyle Harris with APRO Marketing Director Cindy Ferguson at Las Vegas 2012 Winter Market.

American Furniture Manufacturing is a newly approve TRIB Group vendor and APRO exhibitor that specializes in reclining furniture, motion and stationary upholstery with a decided advantage.

"At American Furniture Manufacturing, we have a competitive advantage because we don’t have a ‘quick ship’ program," says company president Lyle Harris. "Our entire line is quick ship."

With a 1.2 million square foot warehouse in Pontotoc, Mississippi, Harris currently works with Aaron’s, but is excited about building relationships with small and medium sized independent dealers.

"We are very excited to work with RTO," Harris says. "We know our products are durable and can really hold up in the market because of their solid construction and we’ve proven that with our work with Aaron’s. We want to be a complete resource for rent to own dealers.

Visit American Furniture Manufacturing at Americanfurnituremanufacturing.net

Rent-A-Center Tuesday, delivered $5,000 worth of gift cards to Pendleton Place Children’s Shelter.

Tied to a philanthropic initiative dubbed "Random Acts of Caring," the unexpected gesture included gift cards to retailers such as Wal-mart, TJ Maxx, Target, Marshalls, Kohl’s and Old Navy.

"Pendleton Place stood out as a particularly deserving community resource," said Rent-A-Center Vice President Xavier Dominicis. “In reviewing the shelter’s website, we noticed a wish list for donations. Gift cards were sought to address operational needs, so we decided to pull some together and lend a hand."

Today’s Random Act of Caring marks the 78th act carried out since Rent-A-Center launched the initiative in 2008 to support the communities it serves.

Founded in 1975 by the Junior League of Greenville, Pendleton Place Children’s Shelter has long provided a safe, warm place for children and youth who have been hurt by abuse, neglect, or abandonment. Offering food, clothing, warm beds and medical care, the shelter helps children begin the healing process.

Rent-A-Center, Inc., headquartered in Plano, Texas, currently operates approximately 3,000 company-owned stores nationwide and in Canada, Mexico and Puerto Rico.

Premier Dealer Tim Strachan

Tim Strachan has come full circle in the Rent to Own industry over the past twenty two years.

In 1990 Tim went to work for a Rent-To-Own company that, at the time, was owned by The Premier Companies’ President and CEO Trooper Earle. The store was located in LaVale, Maryland which is located outside of Cumberland, Maryland. From 2000-2006, Tim was a store manager for Rent Way. His Regional Manager was Shawn Newman, and their relationship continued after the sale of Rent Way.

After researching for the right franchise opportunity, Shawn decided to become a Premier Rental-Purchase franchisee in 2007. He partnered with Dave Bauer and they opened their store in Harrisburg, Pennsylvania.

“Premier’s lower royalty fee, along with some flexibility on running our business, was a big attraction for me,” said Shawn. “If you’re the independent, take charge entrepreneur, then Premier provides a great environment.” 

With the goal of having multiple stores in mind, Shawn then began his partnership with Tim to open his second Premier Rental-Purchase and Maryland’s first. This new store is located in the same shopping plaza where Tim worked in the 1990’s! The Grand Opening was held January 28th with refreshments, balloons, 50” HDTV drawing and a live radio remote broadcast for many old and new customers.

“I’m excited about being in my own store and growing it as quick as possible. My customer service skills and the relationships I’ve built in the community are helping us grow our customer base,” said Tim.

The RTO veterans hope to find another Premier Rental-Purchase location this year.

The national office of The Premier Companies is located in Williamsburg, Virginia. Premier Brands consist of Premier Rental-Purchase, Premier Home Furnishings, Premier Wheel Workz, Premier Auto by Rent. All Premier stores are independently owned and operated. Visit Premier’s website at www.thepremiercompanies.net or call 800/2-Premier and ask for Trooper Earle.
 

Bestway names $5,000 fill A house winner

L to R: Kris Swift, Bestway Regional Vice President, David Kraemer, Bestway CEO/President, winner Nakeisha Carter, Chris Nicoulin, Bestway District Manager and Store Manager C.D. Bell

Bestway Rent To Own recently gave away $5000 in furniture with its "Fill A House" promotion, October 1 – December 31, 2011. 

The winner, Nakeisha Carter is from Brandon, Mississippi. Carter entered the contest at her local Pearl, Mississippi store.

Store Manager C.D. Bell, was thrilled that an existing customer won. 

Bestway Rent To Own has 91 locations in ten states in the Southeast region of the United States. 

L to R: Kris Swift, Bestway Regional Vice President, David Kraemer, Bestway CEO/President, winner Nakeisha Carter, Chris Nicoulin, Bestway District Manager and Store Manager C.D. Bell

Bestway Rent To Own recently gave away $5000 in furniture with its "Fill A House" promotion, October 1 – December 31, 2011. 

The winner, Nakeisha Carter is from Brandon, Mississippi. Carter entered the contest at her local Pearl, Mississippi store.

Store Manager C.D. Bell, was thrilled that an existing customer won. 

Bestway Rent To Own has 91 locations in ten states in the Southeast region of the United States. 

Rent-A-Center Monday, announced revenues and earnings for the quarter and year ended December 31, 2011.

Total revenues for the quarter ended December 31, 2011, were $737.5 million, an increase of $60.4 million from total revenues of $677.1 million for the same period in the prior year.

This 8.9% growth in total revenues was primarily due to an increase in revenue driven by the RAC Acceptance business, partially offset by a reduction in revenue due to the discontinuation of the financial services business. Same store sales for the three months ended December 31, 2011, increased 2.7%.

Net earnings and net earnings per diluted share for the three months ended December 31, 2011, were $49.3 million and $0.83, respectively, as compared to $31.9 million and $0.49, respectively, for the same period in the prior year.

Net earnings and net earnings per diluted share for the three months ended December 31, 2011, were reduced by $1.4 million, and approximately $0.02, respectively, due to a pre-tax restructuring charge in connection with the acquisition of 58 rent-to-own stores, as discussed below.

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 for the three months ended December 31, 2010.

When excluding the items above, adjusted net earnings per diluted share for the three months ended December 31, 2011, were $0.85, as compared to adjusted net earnings per diluted share for the three months ended December 31, 2010, of $0.71, an increase of 19.7%.

These results include dilution related to the Company’s growth initiatives of approximately $0.08 per share for the three months ended December 31, 2011 and $0.03 per share for the same period in the prior year.

“We are generally pleased with our earnings for the fourth quarter and our overall results for the fiscal year 2011,” said Mark E. Speese, the Company’s Chairman and Chief Executive Officer.

“While our top line was somewhat tempered a bit due to our core rent-to-own customers remaining focused on value, our customer demand remained strong,” Speese added. “In addition, our RAC Acceptance business reflected continued customer demand with revenue contribution of over $60 million in the quarter and over $190 million for the year,” Speese continued. “We believe we are well positioned as we enter 2012 and our future remains bright. We will continue to execute on our strategic plan by keeping the core business strong and extending our reach both domestically and internationally.”

Total revenues for the twelve months ended December 31, 2011, were $2.882 billion, an increase of $150.0 million from total revenues of $2.732 billion for the same period in the prior year.

This 5.5% growth in total revenues was primarily due to an increase in revenue driven by the RAC Acceptance business, partially offset by a reduction in revenue due to the discontinuation of the financial services business. Same store sales for the twelve months ended December 31, 2011, increased 0.8%.

Net earnings and net earnings per diluted share for the twelve months ended December 31, 2011, were $164.6 million and $2.66, respectively, as compared to $171.6 million and $2.60, respectively, for the same period in the prior year.

Net earnings and net earnings per diluted share for the twelve months ended December 31, 2011, were impacted by the following significant items, as discussed below:

• A $1.4 million pre-tax restructuring charge, or approximately $0.01 per share, related to the acquisition of 58 rent-to-own stores;

• A $7.6 million pre-tax restructuring charge, or approximately $0.08 per share, related to the closing of Home Choice and RAC Limited locations;

• A $4.9 million pre-tax restructuring charge, or approximately $0.05 per share, related to the acquisition of The Rental Store, Inc.;

• A $7.3 million pre-tax impairment charge, or approximately $0.08 per share, related to the discontinuation of the financial services business;

• A $2.8 million pre-tax litigation expense, or approximately $0.03 per share, related to the settlement of wage and hour claims in California.

Collectively, these items reduced net earnings per diluted share by approximately $0.25 for the twelve months ended December 31, 2011.

Net earnings and net earnings per diluted share for the twelve 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 $0.18 per share, related to the discontinuation of the financial services business;

• 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 $0.21 for the twelve months ended December 31, 2010.

When excluding the items above, adjusted net earnings per diluted share for the twelve months ended December 31, 2011, were $2.91, as compared to adjusted net earnings per diluted share for the twelve months ended December 31, 2010, of $2.81, an increase of 3.6%.

These results include dilution related to the Company’s growth initiatives of approximately $0.25 per share for the twelve months ended December 31, 2011 and $0.09 per share for the same period in the prior year.

Through the twelve month period ended December 31, 2011, the Company generated cash flow from operations of approximately $286.6 million, while ending the quarter with approximately $88.1 million of cash on hand. During the twelve month period ended December 31, 2011, the Company repurchased 5,852,408 shares of its common stock for approximately $164.3 million in cash under its common stock repurchase program.

To date, the Company has repurchased a total of 29,322,753 shares and has utilized approximately $715.5 million of the $800.0 million authorized by its Board of Directors since the inception of the plan. Also, reflecting continued confidence in its strong cash flows, the Company recently paid its seventh consecutive quarterly cash dividend.

January 30-February 3, Las Vegas Market, Winter 2012 Las Vegas Furniture Market 888/416-8600
APRO Hospitality Suite, generously sponsored by Ashley Furniture, Tuesday, January 31, 5:30-6:30pm. Ashley suite, World Market Center, Building B, 15th Floor