Total Revenues Increased 2.0%
Consolidated Same Store Sales Increased 1.9%
Diluted Earnings per Share of $0.48
PLANO, Texas -- (Business Wire)
On the Statement of Earnings Highlights, Nine Months Ended September 30,
2014, under the column, Before Significant Items (Non-GAAP Earnings),
the Operating Profit line should read 149,793 (sted: 151,739).
The corrected release reads:
RENT-A-CENTER, INC. REPORTS THIRD QUARTER 2014 RESULTS
Total Revenues Increased 2.0%
Consolidated Same Store Sales Increased 1.9%
Diluted Earnings per Share of $0.48
Rent-A-Center, Inc. (the "Company") (NASDAQ/NGS: RCII), the nation's
largest rent-to-own operator, today announced results for the quarter
ended September 30, 2014.
Third Quarter 2014 Results
Total revenues were $769.5 million, an increase of $14.7 million from
total revenues of $754.8 million for the same period in the prior year.
This 2.0% increase in total revenues was primarily due to increases of
approximately $36.6 million in the Acceptance Now segment and
approximately $6.9 million in the Mexico segment, partially offset by a
decrease of approximately $29.5 million in the Core U.S. segment.
Same store sales increased 1.9% as compared to the same period in the
prior year, primarily attributable to increases of 25.7% and 25.9% in
the Acceptance Now and Mexico segments, respectively, partially offset
by a 3.6% decrease in the Core U.S. segment.
Net earnings and net earnings per diluted share were $25.3 million and
$0.48, respectively, as compared to $27.2 million and $0.50,
respectively, for the same period in the prior year. After adjusting for
significant items (see Non-GAAP Reconciliation below), net earnings and
net earnings per diluted share were $26.0 million and $0.49,
respectively.
"As we expected, same store sales improved again versus the previous
quarter in our Core U.S. business, aided by the roll-out of smartphones
in July. In addition, Acceptance Now continued to deliver consistently
strong same store sales growth. As a result of the performance of these
two businesses, our earnings for the third quarter 2014 met our
expectations," said Robert D. Davis, the Chief Executive Officer of
Rent-A-Center, Inc.
"At the same time, these results confirm our urgency to execute on the
transformation we outlined in February, with a focus on operational and
infrastructure initiatives such as introducing a new labor model for our
Core U.S. stores, developing a new supply chain, formulating a
customer-focused value-based pricing strategy and implementing new
technology into our Acceptance Now locations," Mr. Davis concluded.
Nine Months Ended September 30, 2014 Results
Total revenues were $2,376.5 million, an increase of $41.9 million from
total revenues of $2,334.6 million in the same period in the prior year.
This 1.8% increase in total revenues was primarily due to increases of
approximately $121.9 million in the Acceptance Now segment and
approximately $19.7 million in the Mexico segment, partially offset by a
decrease of approximately $97.6 million in the Core U.S. segment.
Same store sales increased 0.5% as compared to the same period in the
prior year, primarily attributable to increases of 25.6% and 21.2% in
the Acceptance Now and Mexico segments, respectively, partially offset
by a 4.9% decrease in the Core U.S. segment.
Net earnings and net earnings per diluted share were $71.7 million and
$1.35, respectively, as compared to $115.2 million and $2.06,
respectively, for the same period in the prior year.
For the nine months ended September 30, 2014, the Company generated cash
flow from operations of approximately $63.3 million, while ending the
quarter with approximately $62.0 million of cash on hand. The
Company will pay its 18th consecutive quarterly cash dividend on October
23, 2014.
Non-GAAP Reconciliation
Management believes that excluding special items from the financial
results provides investors a clearer perspective of the Company's
ongoing operating performance and a more relevant comparison to prior
period results. During the third quarter of 2014, the Company recorded a
pre-tax credit of approximately $7.1 million due to the settlement of a
lawsuit against the manufacturers of LCD screen displays, pre-tax
restructuring charges of approximately $2.8 million related to a
corporate reorganization, pre-tax restructuring charges of approximately
$0.4 million related to the previously announced consolidation of 150
stores, and a pre-tax impairment charge of $4.6 million related to
internally-developed computer software. During the nine months ended
September 30, 2014, the Company also recorded $1.9 million of financing
charges due to refinancing in the first quarter and pre-tax
restructuring charges of approximately $4.4 million related to the
previously announced consolidation of 150 stores in the second quarter.
While management believes this non-GAAP financial measure is useful in
evaluating the Company, this information should be considered as
supplemental in nature and not as a substitute for or superior to the
related financial information prepared in accordance with GAAP. Further,
the non-GAAP financial measure may differ from similar measures
presented by other companies.
Reconciliation of net income to net income excluding special items (in
thousands, except per share data):
|
|
Three Months Ended September 30, 2014
|
|
Three Months Ended September 30, 2013
|
| |
Amount
|
|
Per Share
| |
Amount
|
|
Per Share
|
Net income
| |
$
|
25,306
| | |
$
|
0.48
| | |
$
|
27,165
| |
$
|
0.50
|
Special items, net of taxes:
| | | | | | | | |
Vendor settlement credit
| | |
(4,682
|
)
| | |
(0.09
|
)
| | |
—
| | |
—
|
Other (gains) and charges
| |
|
5,414
|
| |
|
0.10
|
| |
|
—
| |
|
—
|
Net income excluding special items
| |
$
|
26,038
|
| |
$
|
0.49
|
| |
$
|
27,165
| |
$
|
0.50
|
| | | | | | | |
|
| | | |
|
| |
Nine Months Ended September 30, 2014
| |
Nine Months Ended September 30, 2013
|
| |
Amount
| |
Per Share
| |
Amount
| |
Per Share
|
Net income
| |
$
|
71,696
| | |
$
|
1.35
| | |
$
|
115,174
| |
$
|
2.06
|
Special items, net of taxes:
| | | | | | | | |
Vendor settlement credit
| | |
(4,682
|
)
| | |
(0.09
|
)
| | |
—
| | |
—
|
Other (gains) and charges
| | |
8,023
| | | |
0.15
| | | |
—
| | |
—
|
Finance charges from refinancing
| |
|
1,288
|
| |
|
0.03
|
| |
|
—
| |
|
—
|
Net income excluding special items
| |
$
|
76,325
|
| |
$
|
1.44
|
| |
$
|
115,174
| |
$
|
2.06
|
2014 Guidance
The Company's expectations for the balance of the year are consistent
with the guidance provided in the second quarter 2014 press release.
Rent-A-Center, Inc. will host a conference call to discuss the third
quarter results, guidance and other operational matters on Tuesday
morning, October 21, 2014, at 10:45 a.m. ET. For a live webcast of the
call, visit http://investor.rentacenter.com.
Certain financial and other statistical information that will be
discussed during the conference call will also be provided on the same
website.
Rent-A-Center, Inc., headquartered in Plano, Texas, is the largest
rent-to-own operator in North America, focused on improving the quality
of life for its customers by providing them the opportunity to obtain
ownership of high-quality, durable products such as consumer
electronics, appliances, computers, furniture and accessories, under
flexible rental purchase agreements with no long-term obligation. The
Company owns and operates approximately 3,020 stores in the United
States, Mexico, Canada and Puerto Rico, and approximately 1,360
Acceptance Now kiosk locations in the United States and Puerto Rico.
Rent-A-Center Franchising International, Inc., a wholly owned subsidiary
of the Company, is a national franchiser of approximately 190
rent-to-own stores operating under the trade names of "Rent-A-Center,"
"ColorTyme," and "RimTyme." For additional information about the
Company, please visit our website at www.rentacenter.com.
This press release and the guidance above contain forward-looking
statements that involve risks and uncertainties. Such forward-looking
statements generally can be identified by the use of forward-looking
terminology such as "may," "will," "expect," "intend," "could,"
"estimate," "should," "anticipate," or "believe," or the negative
thereof or variations thereon or similar terminology. The Company
believes that the expectations reflected in such forward-looking
statements are accurate. However, there can be no assurance that such
expectations will occur. The Company's actual future performance could
differ materially from such statements. Factors that could cause or
contribute to such differences include, but are not limited to: the
general strength of the economy and other economic conditions affecting
consumer preferences and spending; economic pressures, such as high fuel
costs, affecting the disposable income available to the Company's
current and potential customers; changes in the unemployment rate;
difficulties encountered in improving the financial performance of the
Core U.S. segment; the Company’s ability to develop and successfully
execute the competencies and capabilities which are the focus of the
Company’s multi-year program designed to transform and modernize the
Company’s operations; costs associated with the Company's multi-year
program designed to transform and modernize the Company’s operations;
the Company’s ability to successfully market smartphones and related
services to its customers; the Company's ability to develop and
successfully implement digital electronic commerce capabilities; the
Company's ability to retain the revenue from customer accounts merged
into another store location as a result of the store consolidation plan;
the Company's ability to execute and the effectiveness of the store
consolidation; rapid inflation or deflation in prices of the Company's
products; the Company's available cash flow; the Company's ability to
identify and successfully market products and services that appeal to
its customer demographic; consumer preferences and perceptions of the
Company's brand; uncertainties regarding the ability to open new
locations; the Company's ability to acquire additional stores or
customer accounts on favorable terms; the Company's ability to control
costs and increase profitability; the Company's ability to enhance the
performance of acquired stores; the Company's ability to retain the
revenue associated with acquired customer accounts; the Company's
ability to enter into new and collect on its rental or lease purchase
agreements; the passage of legislation adversely affecting the
rent-to-own industry; the Company's compliance with applicable statutes
or regulations governing its transactions; changes in interest rates;
adverse changes in the economic conditions of the industries, countries
or markets that the Company serves; information technology and data
security costs; the Company's ability to protect the integrity and
security of individually identifiable data of its customers and
employees; the impact of any breaches in data security or other
disturbances to the Company's information technology and other networks;
changes in the Company's stock price, the number of shares of common
stock that it may or may not repurchase, and future dividends, if any;
changes in estimates relating to self-insurance liabilities and income
tax and litigation reserves; changes in the Company's effective tax
rate; fluctuations in foreign currency exchange rates; the Company's
ability to maintain an effective system of internal controls; the
resolution of the Company's litigation; and the other risks detailed
from time to time in the Company's SEC reports, including but not
limited to, its annual report on Form 10-K for the year ended December
31, 2013, and its quarterly reports on Form 10-Q for the quarters ended
March 31, 2014, and June 30, 2014. You are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the
date of this press release. Except as required by law, the Company is
not obligated to publicly release any revisions to these forward-looking
statements to reflect the events or circumstances after the date of this
press release or to reflect the occurrence of unanticipated events.
|
| |
Rent-A-Center, Inc. and Subsidiaries |
|
STATEMENT OF EARNINGS HIGHLIGHTS |
(Unaudited) |
| |
|
(In thousands, except per share data) | | Three Months Ended September 30, |
| | 2014 | |
| 2014 |
|
|
2013 (2) |
| | Before | | | After | | | After |
| | Significant Items | | | Significant Items | | | Significant Items |
| | (Non-GAAP | | | (GAAP | | | (GAAP |
| | Earnings) | | | Earnings) | | | Earnings) |
Total Revenues
| |
$
|
769,525
| | |
$
|
769,525
| | | |
$
|
754,780
| |
Operating Profit
| | |
45,494
| | | |
44,823
| | | | |
55,773
| |
Net Earnings
| | |
26,038
| (1) | | |
25,306
| | | | |
27,165
| |
Diluted Earnings per Common Share
| |
$
|
0.49
| (1) | |
$
|
0.48
| | | |
$
|
0.50
| |
Adjusted EBITDA
| |
$
|
65,412
| | |
$
|
65,412
| | | |
$
|
75,833
| |
| | | | | | | | |
|
Reconciliation to Adjusted EBITDA: | | | | | | | | | |
| | |
|
Earnings Before Income Taxes
| |
$
|
33,713
| (1) | |
$
|
33,042
| | | |
$
|
45,040
| |
Add back (subtract):
| | | | | | | | | |
Vendor settlement credit
| | |
—
| | | |
(7,072
|
)
| | | |
—
| |
Restructuring charge
| | |
—
| | | |
3,185
| | | | |
—
| |
Impairment charge
| | |
—
| | | |
4,558
| | | | |
—
| |
Interest Expense, net
| | |
11,781
| | | |
11,781
| | | | |
10,733
| |
Depreciation of Property Assets
| | |
18,536
| | | |
18,536
| | | | |
19,421
| |
Amortization and Write-down of Intangibles
| |
|
1,382
| | |
|
1,382
|
| | |
|
639
|
|
| | | | | | | | |
|
Adjusted EBITDA
| |
$
|
65,412
| | |
$
|
65,412
| | | |
$
|
75,833
| |
| | | | | | | | | | | | |
|
(1) Excludes the effects of a $7.1 million pre-tax vendor
settlement credit, a $4.6 million pre-tax impairment charge and a $3.2
million pre-tax restructuring charge. These charges reduced net earnings
and net earnings per diluted share for the quarter ended September 30,
2014, by approximately $0.7 million and $0.01, respectively.
(2) As discussed in our Annual Report on Form 10-K for the
year ended December 31, 2013, we identified errors in accounting for our
estimates for rental merchandise reserves and for the allowance for
doubtful accounts, resulting in an immaterial overstatement of on rent
merchandise and understatements of held for rent merchandise and
receivables which affected periods through December 31, 2013. We
increased (decreased) previously reported salaries and other expenses,
operating profit, income tax expense and net earnings by $0.8 million,
$(0.8) million, $(0.3) million and $(0.5) million in our historical
financial statement highlights and financial statements for the
three-month period ended September 30, 2013, reported herein.
(In thousands, except per share data) |
| Nine Months Ended September 30, |
| | 2014 | |
| 2014 |
|
2013 (4) |
| | Before | | | After | | After |
| | Significant Items | | | Significant Items | | Significant Items |
| | (Non-GAAP | | | (GAAP | | (GAAP |
| | Earnings) | | | Earnings) | | Earnings) |
Total Revenues
| |
$
|
2,376,488
| | |
$
|
2,376,488
| | |
$
|
2,334,572
| |
Operating Profit
| | |
149,793
| | | |
144,745
| | | |
211,787
| |
Net Earnings
| | |
76,325
| (3) | | |
71,696
| | | |
115,174
| |
Diluted Earnings per Common Share
| |
$
|
1.44
| (3) | |
$
|
1.35
| | |
$
|
2.06
| |
Adjusted EBITDA
| |
$
|
210,225
| | |
$
|
210,225
| | |
$
|
271,135
| |
| | | | | | |
|
Reconciliation to Adjusted EBITDA: | | | | | | | |
|
|
Earnings Before Income Taxes
| |
$
|
115,296
| (3) | |
$
|
108,302
| | |
$
|
183,673
| |
Add back (subtract):
| | | | | | | |
Vendor settlement credit
| | |
—
| | | |
(7,072
|
)
| | |
—
| |
Restructuring charge
| | |
—
| | | |
7,562
| | | |
—
| |
Impairment charge
| | |
—
| | | |
4,558
| | | |
—
| |
Finance charges from refinancing
| | |
—
| | | |
1,946
| | | |
—
| |
Interest Expense, net
| | |
34,497
| | | |
34,497
| | | |
28,114
| |
Depreciation of Property Assets
| | |
56,258
| | | |
56,258
| | | |
56,654
| |
Amortization and Write-down of Intangibles
| |
|
4,174
| | |
|
4,174
|
| |
|
2,694
|
|
| | | | | | |
|
Adjusted EBITDA
| |
$
|
210,225
| | |
$
|
210,225
| | |
$
|
271,135
| |
(3) Excludes the effects of a $7.1 million pre-tax vendor
settlement credit, a $7.6 million pre-tax restructuring charge, a $4.6
million pre-tax impairment charge and a $1.9 million pre-tax refinancing
charge. These charges reduced net earnings and net earnings per diluted
share for the nine months ended September 30, 2014, by approximately
$4.6 million and $0.09, respectively.
(4) As discussed in our Annual Report on Form 10-K for the
year ended December 31, 2013, we identified errors in accounting for our
estimates for rental merchandise reserves and for the allowance for
doubtful accounts, resulting in an immaterial overstatement of on rent
merchandise and understatements of held for rent merchandise and
receivables which affected periods through December 31, 2013. We
increased (decreased) previously reported salaries and other expenses,
operating profit, income tax expense and net earnings by $1.5 million,
$(1.5) million, $(0.6) million and $(0.9) million in our historical
financial statement highlights and financial statements for the
nine-month period ended September 30, 2013, reported herein. We also
increased (decreased) previously reported accounts receivable, on rent
rental merchandise inventory, held for rent rental merchandise, total
assets, total liabilities and stockholders' equity by $4.5 million,
$(16.4) million, $1.2 million, $(10.7) million, $(4.0) million and
$(6.7) million, respectively, at September 30, 2013.
|
| |
(In thousands of dollars) | | September 30, |
| |
| 2014 |
|
| 2013(4) |
|
Cash and Cash Equivalents
| |
$
|
61,958
| |
$
|
52,857
| |
Receivables, net
| | |
68,229
| | |
52,979
| |
Prepaid Expenses and Other Assets
| | |
85,565
| | |
73,910
| |
Rental Merchandise, net
| | | | |
On Rent
| | |
867,184
| | |
838,132
| |
Held for Rent
| | |
266,574
| | |
218,633
| |
Total Assets
| |
$
|
3,059,191
| |
$
|
2,926,559
| |
| | | |
|
Senior Debt
| |
$
|
425,135
| |
$
|
284,575
| |
Senior Notes
| | |
550,000
| | |
550,000
| |
Total Liabilities
| | |
1,674,167
| | |
1,585,556
| |
Stockholders' Equity
| |
$
|
1,385,024
| |
$
|
1,341,003
| |
| | | |
|
|
| |
| |
Rent-A-Center, Inc. and Subsidiaries |
|
CONSOLIDATED STATEMENTS OF EARNINGS |
(Unaudited) |
| | | |
|
(In thousands, except per share data) | | Three Months Ended September 30, | | Nine Months Ended September 30, |
| |
| 2014 |
|
|
|
2013 (2) |
| |
| 2014 |
|
|
|
2013 (4) |
|
Revenues
| | | | |
Store
| | | | | | | | |
Rentals and fees
| |
$
|
678,190
| | |
$
|
671,334
| | |
$
|
2,056,492
| | |
$
|
2,013,885
| |
Merchandise sales
| | |
58,477
| | | |
53,808
| | | |
226,148
| | | |
227,171
| |
Installment sales
| | |
18,089
| | | |
17,474
| | | |
54,499
| | | |
52,138
| |
Other
| | |
6,384
| | | |
4,483
| | | |
14,376
| | | |
14,244
| |
Franchise
| | | | | | | | |
Merchandise sales
| | |
6,524
| | | |
6,396
| | | |
19,811
| | | |
23,072
| |
Royalty income and fees
| |
|
1,861
|
| |
|
1,285
|
| |
|
5,162
|
| |
|
4,062
|
|
| | |
769,525
| | | |
754,780
| | | |
2,376,488
| | | |
2,334,572
| |
Cost of revenues
| | | | | | | | |
Store
| | | | | | | | |
Cost of rentals and fees
| | |
177,208
| | | |
170,979
| | | |
532,590
| | | |
507,826
| |
Cost of merchandise sold
| | |
47,569
| | | |
42,344
| | | |
174,299
| | | |
175,903
| |
Cost of installment sales
| | |
6,134
| | | |
5,983
| | | |
18,874
| | | |
18,141
| |
Vendor settlement credit
| | |
(7,072
|
)
| | |
—
| | | |
(7,072
|
)
| | |
—
| |
Franchise cost of merchandise sold
| |
|
6,247
|
| |
|
6,142
|
| |
|
18,984
|
| |
|
22,072
|
|
| | |
230,086
| | | |
225,448
| | | |
737,675
| | | |
723,942
| |
Gross profit
| | |
539,439
| | | |
529,332
| | | |
1,638,813
| | | |
1,610,630
| |
Operating expenses
| | | | | | | | |
Salaries and other expenses
| | |
443,874
| | | |
435,866
| | | |
1,345,303
| | | |
1,281,922
| |
General and administrative expenses
| | |
41,617
| | | |
37,054
| | | |
132,471
| | | |
114,227
| |
Amortization and write-down of intangibles
| | |
1,382
| | | |
639
| | | |
4,174
| | | |
2,694
| |
Other (gains) and charges
| |
|
7,743
|
| |
|
—
|
| |
|
12,120
|
| |
|
—
|
|
| | |
494,616
| | | |
473,559
| | | |
1,494,068
| | | |
1,398,843
| |
| | | | | | | |
|
Operating profit
| | |
44,823
| | | |
55,773
| | | |
144,745
| | | |
211,787
| |
Finance charges from refinancing
| | |
—
| | | |
—
| | | |
1,946
| | | |
—
| |
Interest expense
| | |
11,981
| | | |
10,916
| | | |
35,178
| | | |
28,773
| |
Interest income
| |
|
(200
|
)
| |
|
(183
|
)
| |
|
(681
|
)
| |
|
(659
|
)
|
Earnings before income taxes
| | |
33,042
| | | |
45,040
| | | |
108,302
| | | |
183,673
| |
Income tax expense
| |
|
7,736
|
| |
|
17,875
|
| |
|
36,606
|
| |
|
68,499
|
|
NET EARNINGS
| |
$
|
25,306
|
| |
$
|
27,165
|
| |
$
|
71,696
|
| |
$
|
115,174
|
|
| | | | | | | |
|
Basic weighted average shares
| |
|
52,864
|
| |
|
53,438
|
| |
|
52,828
|
| |
|
55,423
|
|
| | | | | | | |
|
Basic earnings per common share
| |
$
|
0.48
|
| |
$
|
0.51
|
| |
$
|
1.36
|
| |
$
|
2.08
|
|
| | | | | | | |
|
Diluted weighted average shares
| |
|
53,114
|
| |
|
53,812
|
| |
|
53,069
|
| |
|
55,800
|
|
| | | | | | | |
|
Diluted earnings per common share
| |
$
|
0.48
|
| |
$
|
0.50
|
| |
$
|
1.35
|
| |
$
|
2.06
|
|
| | | | | | | | | | | | | | | |
|
Rent-A-Center, Inc. and Subsidiaries
SEGMENT INFORMATION HIGHLIGHTS
(Unaudited)
On January 1, 2014, the Company realigned its reporting structure to
include its Canadian stores in the Core U.S. segment, which were
previously reported in the International segment. The accompanying
prior-year amounts and store counts have been revised to reflect this
change, and we now refer to the segment formerly reported as
"International" as "Mexico" since only that country's results are
reported therein.
|
| |
(In thousands of dollars) | | Three Months Ended September 30, 2014 |
| | Core U.S. |
| Acceptance Now |
| Mexico |
| Franchising |
| Total |
Revenue
| |
$
|
581,600
| |
$
|
160,388
| |
$
|
19,152
| | |
$
|
8,385
| |
$
|
769,525
|
Gross profit
| | |
430,816
| | |
92,911
| | |
13,574
| | | |
2,138
| | |
539,439
|
Operating profit (loss)
| | |
27,297
| | |
21,242
| | |
(4,884
|
)
| | |
1,168
| | |
44,823
|
Depreciation of property assets
| | |
15,208
| | |
1,506
| | |
1,773
| | | |
49
| | |
18,536
|
Amortization and write-down of intangibles
| | |
1,240
| | |
142
| | |
—
| | | |
—
| | |
1,382
|
Capital expenditures
| | |
16,177
| | |
3,336
| | |
770
| | | |
—
| | |
20,283
|
| |
|
(In thousands of dollars) | | Three Months Ended September 30, 2013 |
| | Core U.S. | | Acceptance Now | | Mexico | | Franchising | | Total (2) |
Revenue
| |
$
|
611,091
| |
$
|
123,798
| |
$
|
12,210
| | |
$
|
7,681
| |
$
|
754,780
|
Gross profit
| | |
444,898
| | |
74,083
| | |
8,812
| | | |
1,539
| | |
529,332
|
Operating profit (loss)
| | |
44,073
| | |
18,789
| | |
(7,488
|
)
| | |
399
| | |
55,773
|
Depreciation of property assets
| | |
16,610
| | |
1,323
| | |
1,468
| | | |
20
| | |
19,421
|
Amortization and write-down of intangibles
| | |
497
| | |
142
| | |
—
| | | |
—
| | |
639
|
Capital expenditures
| | |
22,399
| | |
2,819
| | |
3,722
| | | |
—
| | |
28,940
|
| |
|
(In thousands of dollars) | | Nine Months Ended September 30, 2014 |
| | Core U.S. | | Acceptance Now | | Mexico | | Franchising | | Total |
Revenue
| |
$
|
1,808,403
| |
$
|
490,392
| |
$
|
52,720
| | |
$
|
24,973
| |
$
|
2,376,488
|
Gross profit
| | |
1,319,325
| | |
275,694
| | |
37,805
| | | |
5,989
| | |
1,638,813
|
Operating profit (loss)
| | |
99,315
| | |
61,218
| | |
(17,979
|
)
| | |
2,191
| | |
144,745
|
Depreciation of property assets
| | |
49,129
| | |
4,356
| | |
5,204
| | | |
135
| | |
58,824
|
Amortization and write-down of intangibles
| | |
3,748
| | |
426
| | |
—
| | | |
—
| | |
4,174
|
Capital expenditures
| | |
47,898
| | |
9,193
| | |
4,642
| | | |
—
| | |
61,733
|
Rental merchandise, net
| | | | | | | | | | |
On rent
| | |
532,743
| | |
313,533
| | |
20,908
| | | |
—
| | |
867,184
|
Held for rent
| | |
253,017
| | |
5,779
| | |
7,778
| | | |
—
| | |
266,574
|
Total assets
| | |
2,576,022
| | |
410,296
| | |
70,350
| | | |
2,523
| | |
3,059,191
|
| |
|
(In thousands of dollars) | | Nine Months Ended September 30, 2013 |
| | Core U.S. | | Acceptance Now | | Mexico | | Franchising | | Total (4) |
Revenue
| |
$
|
1,905,968
| |
$
|
368,454
| |
$
|
33,016
| | |
$
|
27,134
| |
$
|
2,334,572
|
Gross profit
| | |
1,371,890
| | |
209,960
| | |
23,718
| | | |
5,062
| | |
1,610,630
|
Operating profit (loss)
| | |
176,807
| | |
51,833
| | |
(18,497
|
)
| | |
1,644
| | |
211,787
|
Depreciation of property assets
| | |
48,987
| | |
3,574
| | |
4,033
| | | |
60
| | |
56,654
|
Amortization and write-down of intangibles
| | |
2,267
| | |
427
| | |
—
| | | |
—
| | |
2,694
|
Capital expenditures
| | |
57,642
| | |
7,021
| | |
9,098
| | | |
—
| | |
73,761
|
Rental merchandise, net
| | | | | | | | | | |
On rent
| | |
568,413
| | |
255,997
| | |
13,722
| | | |
—
| | |
838,132
|
Held for rent
| | |
207,628
| | |
3,681
| | |
7,324
| | | |
—
| | |
218,633
|
Total assets
| | |
2,518,194
| | |
345,539
| | |
61,617
| | | |
1,209
| | |
2,926,559
|
|
| |
| |
SAME STORE SALES |
(Unaudited) |
| | | |
|
| | 2014 |
| | 2013 |
|
Period | | Core U.S. |
| Acceptance Now |
| Mexico |
| Total | | Core U.S. |
| Acceptance Now |
| Mexico |
| Total |
Three months ended March 31,
| |
(6.1
|
)%
| |
26.1
|
%
| |
20.3
|
%
| |
(0.8
|
)%
| |
(8.7
|
)%
| |
33.8
|
%
| |
80.0
|
%
| |
(4.3
|
)%
|
Three months ended June 30,
| |
(4.7
|
)%
| |
25.1
|
%
| |
17.0
|
%
| |
0.6
|
%
| |
(5.8
|
)%
| |
32.0
|
%
| |
61.3
|
%
| |
(1.6
|
)%
|
Three months ended September 30,
| |
(3.6
|
)%
| |
25.7
|
%
| |
25.9
|
%
| |
1.9
|
%
| |
(5.0
|
)%
| |
29.3
|
%
| |
36.2
|
%
| |
(0.8
|
)%
|
Nine months ended September 30,
| |
(4.9
|
)%
| |
25.6
|
%
| |
21.2
|
%
| |
0.5
|
%
| |
(6.6
|
)%
| |
31.6
|
%
| |
55.2
|
%
| |
(2.3
|
)%
|
|
| |
Rent-A-Center, Inc. and Subsidiaries |
|
LOCATION ACTIVITY |
(Unaudited) |
| |
|
| | Location Activity - Three Months Ended September 30, 2014 |
| | Core U.S. |
| Acceptance Now |
| Mexico |
| Franchising |
| Total |
Locations at beginning of period
| |
2,847
| |
1,359
| |
176
| |
180
| |
4,562
|
New location openings
| |
2
| |
55
| |
—
| |
14
| |
71
|
Acquired locations remaining open
| |
1
| |
—
| |
—
| |
—
| |
1
|
Closed locations
| | | | | | | | | | |
Merged with existing locations
| |
—
| |
55
| |
—
| |
—
| |
55
|
Sold or closed with no surviving location
| |
9
| |
—
| |
—
| |
6
| |
15
|
Locations at end of period
| |
2,841
| |
1,359
| |
176
| |
188
| |
4,564
|
Acquired locations closed and accounts merged with existing locations
| |
1
| |
—
| |
—
| |
—
| |
1
|
| |
|
| | Location Activity - Three Months Ended September 30, 2013 |
| | Core U.S. | | Acceptance Now | | Mexico | | Franchising | | Total |
Locations at beginning of period
| |
2,990
| |
1,153
| |
130
| |
221
| |
4,494
|
New location openings
| |
6
| |
112
| |
22
| |
4
| |
144
|
Acquired locations remaining open
| |
6
| |
—
| |
—
| |
—
| |
6
|
Closed locations
| | | | | | | | | | |
Merged with existing locations
| |
10
| |
10
| |
2
| |
—
| |
22
|
Sold or closed with no surviving location
| |
—
| |
1
| |
—
| |
12
| |
13
|
Locations at end of period
| |
2,992
| |
1,254
| |
150
| |
213
| |
4,609
|
Acquired locations closed and accounts merged with existing locations
| |
5
| |
—
| |
—
| |
—
| |
5
|
| |
|
| | Location Activity - Nine Months Ended September 30, 2014 |
| | Core U.S. | | Acceptance Now | | Mexico | | Franchising | | Total |
Locations at beginning of period
| |
3,010
| |
1,325
| |
151
| |
179
| |
4,665
|
New location openings
| |
10
| |
140
| |
30
| |
23
| |
203
|
Acquired locations remaining open
| |
2
| |
—
| |
—
| |
—
| |
2
|
Closed locations
| | | | | | | | | | |
Merged with existing locations
| |
163
| |
105
| |
5
| |
—
| |
273
|
Sold or closed with no surviving location
| |
18
| |
1
| |
—
| |
14
| |
33
|
Locations at end of period
| |
2,841
| |
1,359
| |
176
| |
188
| |
4,564
|
Acquired locations closed and accounts merged with existing locations
| |
7
| |
—
| |
—
| |
—
| |
7
|
| |
|
| | Location Activity - Nine Months Ended September 30, 2013 |
| | Core U.S. | | Acceptance Now | | Mexico | | Franchising | | Total |
Locations at beginning of period
| |
3,008
| |
966
| |
90
| |
224
| |
4,288
|
New location openings
| |
15
| |
320
| |
62
| |
9
| |
406
|
Acquired locations remaining open
| |
12
| |
—
| |
—
| |
—
| |
12
|
Closed locations
| | | | | | | | | | |
Merged with existing locations
| |
40
| |
31
| |
2
| |
—
| |
73
|
Sold or closed with no surviving location
| |
3
| |
1
| |
—
| |
20
| |
24
|
Locations at end of period
| |
2,992
| |
1,254
| |
150
| |
213
| |
4,609
|
Acquired locations closed and accounts merged with existing locations
| |
18
| |
—
| |
—
| |
—
| |
18
|
Contacts:
Rent-A-Center, Inc.:
David E. Carpenter, 972-801-1214
Vice
President - Investor Relations
david.carpenter@rentacenter.com
or
Maureen
B. Short, 972-801-1899
Senior Vice President - Finance, Investor
Relations and Treasury
maureen.short@rentacenter.com
Source: Rent-A-Center, Inc.
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