Rent-to-Own

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

Twin Star-Classic Flame Party kicks off Vegas Winter Market

More than 300 turned out for Twin Star-Classic Flame’s fourth annual "Customer Appreciation Party" at the Wynn Resort and Casino kicking off the Winter 2012 Las Vegas Furniture Market Jan. 30-Feb. 3.

"We throw this party every year to show our appreciation for all our customers and associates," said Jeff Colletto, Twin Star Owner. "We had a great year and we want to share that with our friends tonight."

More than a dozen rental dealers were in attendance as well as representatives from TRIB Group and APRO. See photo gallery.

APRO will host a Rent to Own Hospitality Suite, generously sponsored by Ashley Furniture, Tuesday, January 31, 5:30-6:30 pm at Ashley suite, World Market Center, Building B, 15th Floor.

A new feature of this year’s Las Vegas Market is a "Made in U.S.A." Pavilion feature nearly 40 companies with American-made products.

This showcase follows on the successful launch of the American pavilion at Suites at Market Square at the Fall High Point Market, and gives manufacturers, buyers and designers who attend Las Vegas Market the opportunity to experience a west coast version of the popular destination.

The new 5,000-square-foot pavilion, located in on the second floor of Building B, will showcase distinctive American-made furniture and home décor products and collections, highlighting the growing trend toward American-made goods in the industry.

“As more and more consumers move toward the trend in supporting and buying local and domestically made products, Las Vegas Market wanted to present a single destination on the West Coast for those companies to showcase their goods,” said Margaret Powers, vice president of tradeshows/Las Vegas. “This new pavilion gives all our manufacturers an opportunity to highlight their made in U.S.A. wares while providing buyers one-stop-shopping for these highly sought-after products."

A special highlight of this new pavilion will be Las Vegas Market’s partnership with Rick Dale and his shop, Rick’s Restoration, featured in the hit History Channel show “American Restoration.”

Rick’s Restoration will showcase their one-of-a-kind pieces featured on the show, as well as the before-and-after looks of these professionally-restored pieces of American history.

Additionally, Las Vegas Market has secured vintage pieces of local Las Vegas neon history through the world-famous Neon Museum and Boneyard. Select pieces of historical American neon from the heyday of Las Vegas glitz and glamour will be highlighted throughout the pavilion with these unrestored and unique pieces.

Exhibiting companies in the new Made in U.S.A. pavilion include Oak Design Corporation, ITW Dahti Seating, Whittier Wood Furniture, Old Hickory Furniture Co., Sole/Divani Designs, McClure Tables, Supracor, Dapwood Furniture Co., Utah Mountain Furniture and Cambridge Mills.

The pavilion will also feature a product showcase with examples of American-made wares from many permanent Las Vegas Market exhibitors from across the campus.

Showcasing their domestically-produced products in the Made in U.S.A pavilion will include ACME Furniture, Adagio Water Features, Anthony California, Best Home Furnishings, Capel Rugs, Fine Art Tapestries, Fireside Lodge Furniture Company, Four Hands, Furniture Traditions, Imagine That!, India House, Karastan Rugs, King’s Rattan, Legends Furniture, Leggett & Platt Consumer Products Group, Manual Woodworkers, Marshfield Furniture, Montana Woodworks, Omnia Leather Furniture, Pacific Coast Lighting, Peninsula Home Collection, Pure Country Rustic Décor, Reliant Ribbon, Rene Cazares/RC Furniture, Rowe Furniture, Simply Amish and Veneman. Buyers will be able to view a sampling of these exhibitors American-made goods and follow up by visiting their permanent showroom at World Market Center Las Vegas.

More than 300 turned out for Twin Star-Classic Flame’s fifth annual "Customer Appreciation Party" at the Wynn Resort and Casino kicking off the Winter 2012 Las Vegas Furniture Market Jan. 30-Feb. 3.

"We throw this party every year to show our appreciation for all our customers and associates," said Jeff Colletto, Twin Star West Coast Sales Representative. "We had a great year and we want to share that with our friends tonight."

More than a dozen rental dealers were in attendance as well as representatives from TRIB Group and APRO. See photo gallery.

APRO will host a Rent to Own Hospitality Suite, generously sponsored by Ashley Furniture, Tuesday, January 31, 5:30-6:30 pm at Ashley suite, World Market Center, Building B, 15th Floor.

A new feature of this year’s Las Vegas Market is a "Made in U.S.A." Pavilion feature nearly 40 companies with American-made products.

This showcase follows on the successful launch of the American pavilion at Suites at Market Square at the Fall High Point Market, and gives manufacturers, buyers and designers who attend Las Vegas Market the opportunity to experience a west coast version of the popular destination.

The new 5,000-square-foot pavilion, located in on the second floor of Building B, will showcase distinctive American-made furniture and home décor products and collections, highlighting the growing trend toward American-made goods in the industry.

“As more and more consumers move toward the trend in supporting and buying local and domestically made products, Las Vegas Market wanted to present a single destination on the West Coast for those companies to showcase their goods,” said Margaret Powers, vice president of tradeshows/Las Vegas. “This new pavilion gives all our manufacturers an opportunity to highlight their made in U.S.A. wares while providing buyers one-stop-shopping for these highly sought-after products."

A special highlight of this new pavilion will be Las Vegas Market’s partnership with Rick Dale and his shop, Rick’s Restoration, featured in the hit History Channel show “American Restoration.”

Rick’s Restoration will showcase their one-of-a-kind pieces featured on the show, as well as the before-and-after looks of these professionally-restored pieces of American history.

Additionally, Las Vegas Market has secured vintage pieces of local Las Vegas neon history through the world-famous Neon Museum and Boneyard. Select pieces of historical American neon from the heyday of Las Vegas glitz and glamour will be highlighted throughout the pavilion with these unrestored and unique pieces.

Exhibiting companies in the new Made in U.S.A. pavilion include Oak Design Corporation, ITW Dahti Seating, Whittier Wood Furniture, Old Hickory Furniture Co., Sole/Divani Designs, McClure Tables, Supracor, Dapwood Furniture Co., Utah Mountain Furniture and Cambridge Mills.

The pavilion will also feature a product showcase with examples of American-made wares from many permanent Las Vegas Market exhibitors from across the campus.

Showcasing their domestically-produced products in the Made in U.S.A pavilion will include ACME Furniture, Adagio Water Features, Anthony California, Best Home Furnishings, Capel Rugs, Fine Art Tapestries, Fireside Lodge Furniture Company, Four Hands, Furniture Traditions, Imagine That!, India House, Karastan Rugs, King’s Rattan, Legends Furniture, Leggett & Platt Consumer Products Group, Manual Woodworkers, Marshfield Furniture, Montana Woodworks, Omnia Leather Furniture, Pacific Coast Lighting, Peninsula Home Collection, Pure Country Rustic Décor, Reliant Ribbon, Rene Cazares/RC Furniture, Rowe Furniture, Simply Amish and Veneman. Buyers will be able to view a sampling of these exhibitors American-made goods and follow up by visiting their permanent showroom at World Market Center Las Vegas.

Chuck Haver and Travis Johnson, Manager Buddy’s Fort Smith, Oklahoma.

Beginning in November 2011 the Buddy’s Home Furnishings Franchise Team BREG Group operating 10 locations in Arkansas, Kansas and Oklahoma decided to act on the continuing shortage of food in the local food banks of their communities.

Buddy’s offered their customers free weeks on new agreements if they brought in non-perishable food items that would be donated to help feed the less fortunate during the Holiday Season.

Buddy’s supported the event with in store posters, postcards, emails and TV commercials.

The 10 Buddy’s Locations collected over 10,000 non-perishable food items during the Holiday Season and each location donated it to a local Food Bank in their area.

“We had done this program in the past but this year the Team really stepped up and did their part to help fill the shelves of the local food banks," said Chuck Haver, BREG Group operator. "We also appreciate our customers for their support. Many of them did not open a new agreement but just wanted to help and brought food in each week to add to the growing collection. It always feels good when you can give back to your community and help those who really need the help.”
 

The Premier Companies announce 2012 training seminars

John Darden, The Premier Companies Dealer/Vendor Liaison

During their recent convention in Key West, The Premier Companies, franchisor of four Rent-to-Own brands, released their 2012 Training Seminar schedule to their franchisees.

The aggressive schedule includes workshops and seminars focused on key operational elements of the franchisee’s business.

The Premier Companies have five Financial Workshops on the calendar for this year. The Financial Workshops allow for the dealers to meet one-on-one with Trooper Earle, President & CEO of The Premier Companies; Jim Upchurch, Franchisee Support Consultant; and  John Darden, Operations Support, to review all aspects of the dealer’s business.

“We review not only how they are running their business, but strategize and assist them in understanding and evaluating all financial aspects of their business”, said Trooper.

Marketing Workshops have been implemented to focus on the ever changing world of promoting your business.  The Premier Rental-Purchase Marketing Board, hosts the Marketing Workshop to assist dealers with the process of determining their marketing budget, deciding what types of effective media to implement, keeping up-to-date on social media and more.

Last year, The Premier Companies built an online, state-of-the-art marketing tool for dealers to enter their marketing plan online and track the advertising campaigns each month based on deliveries.

The dealers can also see exactly where their current and past customers are thus helping them to see where they need to market.  All these marketing tools are shared during the Marketing Workshop.

John Sprayberry, Premier owner in Dixon, IL, attended the fall 2011 marketing workshop.

“The technology Premier is providing us is just amazing and a very useful tool to help us be better at determining what types of advertising is really working. Participating in a workshop like this allowed me to see some different ways to utilize some of the basic marketing that we all do.”

The Premier Companies goal is to visit each store twice each year. Sixteen In-Field Training sessions are scheduled this year to allow every store and their employees the opportunity to attend the regional training events.

The Field Training Sessions are tailored towards the franchisees, managers and their staff to provide effective and beneficial training materials to help them improve on sales and day to day operations.

“Our Field Training Sessions have been a great addition to our franchise support system” said John Darden, The Premier Companies Dealer/Vendor Liaison. “You know they are working when you walk into a store and an Account Manager ask you “When is our next training session?”
 
The support does not stop there! The Premier Companies also hosts an annual National Convention at the beginning of the year and Dealer Retreat during mid-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.premierrents.net or call 800/2-Premier and ask for Trooper Earle.
 

The United States economy picked up speed at the end of 2011 as businesses substantially built up their inventories and consumers increased their spending.

Gross domestic product, the broadest measure of the nation’s economic health, grew at a 2.8% annual rate in the last three months of the year, the Commerce Department said.

While that’s a major improvement from 1.8% in the prior quarter, and the fastest since the second quarter of 2010, it still fell short of economists’ expectations of 3.2% and sent stock futures falling.

One reason is that the bulk of the growth came from just one area: businesses building up their stock of goods. Private businesses increased inventories $56 billion in the fourth quarter, following a decrease of $2 billion in the third quarter.

An increase on that front can be seen as a double-edged sword. On one hand, it can be a sign of confidence in the economy. When firms predict greater purchases in the future, they build up their inventories.

On the other hand, if consumers don’t end up buying as much as firms had hoped, that can be a drag on GDP.

Consumer spending picked up to a 2% annual rate from 1.7% in the prior quarter. While the quarter included holiday spending, the government adjusts the GDP figures to try to account for seasonal trends.

Meanwhile, business investment in equipment and software, which had been a strong driver of growth earlier in the year, slowed in the quarter. Cuts in state and local government dragged on economic growth for the sixth quarter in a row.

While economic growth overall picked up at the end of 2011, doubts remain about whether the recovery can keep building momentum.

For the full year, GDP grew 1.7% in 2011, a substantial slowdown from 3% growth in 2010.
Fed forecasting breaks new ground

The report comes just two days after the Federal Reserve lowered its outlook for the economy in 2012. The central bank expects the economy to grow between 2.2% and 2.7% this year.

The Fed also announced Wednesday that it plans to keep the federal funds rate near zero until late 2014 because the economy remains too weak to warrant higher interest rates any time soon.

Full story here.

John Darden, The Premier Companies Dealer/Vendor Liaison

During their recent convention in Key West, The Premier Companies, franchisor of four Rent-to-Own brands, released their 2012 Training Seminar schedule to their franchisees.

The aggressive schedule includes workshops and seminars focused on key operational elements of the franchisee’s business.

The Premier Companies have five Financial Workshops on the calendar for this year. The Financial Workshops allow for the dealers to meet one-on-one with Trooper Earle, President & CEO of The Premier Companies; Jim Upchurch, Franchisee Support Consultant; and  John Darden, Operations Support, to review all aspects of the dealer’s business.

“We review not only how they are running their business, but strategize and assist them in understanding and evaluating all financial aspects of their business”, said Trooper.

Marketing Workshops have been implemented to focus on the ever changing world of promoting your business.  The Premier Rental-Purchase Marketing Board, hosts the Marketing Workshop to assist dealers with the process of determining their marketing budget, deciding what types of effective media to implement, keeping up-to-date on social media and more.

Last year, The Premier Companies built an online, state-of-the-art marketing tool for dealers to enter their marketing plan online and track the advertising campaigns each month based on deliveries.

The dealers can also see exactly where their current and past customers are thus helping them to see where they need to market.  All these marketing tools are shared during the Marketing Workshop.

John Sprayberry, Premier owner in Dixon, IL, attended the fall 2011 marketing workshop.

“The technology Premier is providing us is just amazing and a very useful tool to help us be better at determining what types of advertising is really working. Participating in a workshop like this allowed me to see some different ways to utilize some of the basic marketing that we all do.”

The Premier Companies goal is to visit each store twice each year. Sixteen In-Field Training sessions are scheduled this year to allow every store and their employees the opportunity to attend the regional training events.

The Field Training Sessions are tailored towards the franchisees, managers and their staff to provide effective and beneficial training materials to help them improve on sales and day to day operations.

“Our Field Training Sessions have been a great addition to our franchise support system” said John Darden, The Premier Companies Dealer/Vendor Liaison. “You know they are working when you walk into a store and an Account Manager ask you “When is our next training session?”
 
The support does not stop there! The Premier Companies also hosts an annual National Convention at the beginning of the year and Dealer Retreat during mid-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.premierrents.net or call 800/2-Premier and ask for Trooper Earle.
 

APRO is proud to present a special bonus issue of RTOHQ: The Magazine—a digital-only compilation of some of the feature articles we published in 2011.

We hope you have already had a chance to peruse a digital version of our magazine, which we introduced in October to complement our print edition. If not, this special issue will give you a great opportunity to check it out with ease on your computer, smartphone or digital tablet. Catch up on some of the articles you might have missed when they were originally published or review content you have already read.

A year ago, we launched a series of profiles on family-run rent-to-own businesses. The RTO industry and the Association of Progressive Rental Organizations are, after all, one big family, all of us working together toward common goals and a common commitment to providing extraordinary customer experiences. Some of the families profiled were familiar to us, including kindred colleagues who are current or past APRO board members, executive committee members and even APRO presidents.

But we were also pleased to include families we didn’t know enough about, some who approached us, wanting to be a part of this series. It has been gratifying to learn about all the different family dynamics in play and the interesting stories that brought them into the rent-to-own world. The profiles—all compiled within this bonus issue—include multiple generations, family members who work for different rent-to-own companies, mom-and-pop businesses (literally) and kin-led corporations. We even profile two sets of twins!

APRO’s RTOHQ: The Magazine bonus issue includes all of the profiles of family-run rent-to-own businesses that we published over the past year, as well as feature articles by the RTO industry’s expert-in-chief, Ed Winn III. The APRO office often receives inquiries from members wanting information on specific legal or legislative issues that affect the RTO business and APRO’s general counsel has the answers. Our bonus issue offers one year’s worth of just such information to enhance your business.

Click here to see RTOHQ: The Magazine Bonus Edition.

Click or copy and paste the link above to access RTOHQ: The Magazine’s year-end compilation, APRO’s best articles all combined into one robust issue. We are pleased to present our magazine in a variety of formats, available to you wherever you are! Please contact APRO at 800.204.2776 if you have any difficulty accessing our digital publications.