Rent-A-Center, Inc. Reports Fourth Quarter and Year End 2009 Results
Fourth Quarter 2009 Results
Total revenues for the quarter ended December 31, 2009 were $672.9 million, a decrease of $26.9 million from total revenues of $699.8 million for the same period in the prior year. This decrease in revenues was primarily the result of a 3.2% reduction in same store sales, predominantly attributable to a decrease in the number of units per customer, and the anticipated revenue attrition from approximately 365 stores that received customer agreements from stores closed in the 2007 restructuring plan.
Net earnings for the quarter ended December 31, 2009 were $43.7 million, as compared to $36.1 million, for the same period in the prior year. Net earnings per diluted share for the quarter ended December 31, 2009 were $0.66, as compared to reported net earnings per diluted share of $0.54, and adjusted net earnings per diluted share, when excluding the 2008 items below, of $0.47, for the quarter ended December 31, 2008, an increase of 22.2% and 40.4%, respectively.
Net earnings and net earnings per diluted share for the quarter ended December 31, 2008 were affected by the following significant items, as discussed below:
- Increased as a result of $4.6 million in pre-tax litigation credits, or approximately $0.04 per share, related to the Hilda Perez and Shafer/Johnson matters;
- Increased as a result of a $4.3 million pre-tax gain, or approximately $0.04 per share, on the extinguishment of debt; and
- Decreased as a result of an additional $1.4 million pre-tax restructuring expense, or approximately $0.01 per share, related to our 2007 restructuring plan.
"We had a very strong quarter as both our financial results and operating metrics exceeded our expectations," commented Mark E. Speese, the Company's Chairman and Chief Executive Officer. "Store rentals and fees and total revenue exceeded our guidance as well as our net earnings per diluted share. The fourth quarter of 2009 is the second consecutive quarter in which both our customer count and our deliveries per store have outperformed the comparable period in 2008 for each month during that quarter," Speese stated. "Due to the strong trends in our customer traffic, our continued focus on the customer's in store experience as well as our expense management initiatives," continued Mr. Speese, "we are pleased to announce increased earnings expectations of between $2.35 and $2.55 per diluted share for 2010."
Year End December 31, 2009 Results
Total revenues for the twelve months ended December 31, 2009 were $2.752 billion, a decrease of $132.0 million from total revenues of $2.884 billion for the same period in the prior year. This decrease in revenues was primarily the result of a 3.5% reduction in same store sales, predominantly attributable to a decrease in the number of units per customer, plus the impact of the 2007 restructuring plan.
Net earnings and net earnings per diluted share for the twelve months ended December 31, 2009 were $167.9 million and $2.52, respectively, as compared to $139.6 million and $2.08, respectively, for the same period in the prior year. Net earnings and net earnings per diluted share for the twelve months ended December 31, 2009 include $4.9 million, or approximately $0.04 per share, as a result of pre-tax litigation credits related to the Hilda Perez matter as discussed below.
Net earnings and net earnings per diluted share for the twelve months ended December 31, 2008 were affected by the following significant items, as discussed below:
- Increased as a result of $4.6 million in pre-tax litigation credits, or approximately $0.04 per share, related to the Hilda Perez and Shafer/Johnson matters;
- Increased as a result of a $4.3 million pre-tax gain, or approximately $0.04 per share, on the extinguishment of debt; and
- Decreased as a result of an additional $4.5 million pre-tax restructuring expense, or approximately $0.04 per share, related to our 2007 restructuring plan.
When excluding the items above, adjusted net earnings per diluted share for the twelve months ended December 31, 2009 were $2.48, as compared to adjusted net earnings per diluted share for the twelve months ended December 31, 2008 of $2.04, an increase of 21.6%.
"As a result of our strong operating results, we generated positive cash flow from operations of approximately $330.1 million for the twelve month period through December 31, 2009, while ending the quarter with approximately $101.8 million of cash on hand," commented Robert D. Davis, the Company's Executive Vice President and Chief Financial Officer. "This significant cash flow enabled us to enhance our capital structure by reducing our outstanding indebtedness by $235.9 million in 2009, or approximately 25% from year end 2008," Davis stated. "In addition, with our strong recurring cash flow from operations and the flexibility provided by the amendment to our senior credit facility completed in December, we will look to opportunistically repurchase shares of our common stock as well as continue to enhance our balance sheet," Davis concluded.
During the twelve month period ended December 31, 2009, the Company repurchased 472,100 shares of its common stock for $8.8 million in cash under its common stock repurchase program, all in the fourth quarter. To date, the Company has repurchased a total of 19,884,850 shares and has utilized approximately $466.5 million of the $500.0 million authorized by its Board of Directors since the inception of the plan.
Operations Highlights
During the three and twelve month periods ended December 31, 2009, the company-owned stores and financial services locations changed as follows:
| Three Months Ended | Twelve Months Ended | |||
| December 31, 2009 | December 31, 2009 | |||
| Company-Owned Stores | ||||
| Stores at beginning of period | 3,004 | 3,037 | ||
| New store openings | 9 | 40 | ||
| Acquired stores remaining open | - | 1 | ||
| Closed stores | ||||
| Merged with existing stores | 5 | 59 | ||
|
Sold or closed with no surviving store |
1 | 12 | ||
| Stores at end of period | 3,007 | 3,007 | ||
|
Acquired stores closed and accounts merged with existing stores |
3 | 26 | ||
| Financial Services | ||||
| Stores at beginning of period | 345 | 351 | ||
| New store openings | 8 | 12 | ||
| Acquired stores remaining open | 2 | 2 | ||
| Closed stores | ||||
| Merged with existing stores | - | 7 | ||
| Sold or closed with no surviving store | 2 | 5 | ||
| Stores at end of period | 353 | 353 | ||
|
Acquired stores closed and accounts merged with existing stores |
4 | 5 |
Since December 31, 2009, the Company has acquired accounts from two store locations. The Company has added financial services to two existing rent-to-own store locations since December 31, 2009.
Significant Items
Litigation Credits.
Hilda Perez Matter. In November 2007, the Company paid an aggregate of $109.3 million, including plaintiffs' attorneys' fees and administration costs, pursuant to the court approved settlement of the Hilda Perez v. Rent-A-Center, Inc. matter in New Jersey. Under the terms of the settlement, the Company is entitled to 50% of any undistributed monies in the settlement fund. The Company previously recorded during the fourth quarter of 2008 a pre-tax credit in the amount of $2.7 million and additional pre-tax credits in the amount of $3.0 million in the first quarter of 2009 and $1.9 million in the second quarter of 2009, to account for cash payments to the Company representing undistributed monies in the settlement fund to which the Company is entitled pursuant to the terms of the settlement, as well as a refund of costs to administer the settlement previously paid by the Company which were not expended during the administration of the settlement.
Shafer/Johnson Matter. In the fourth quarter of 2007, the Company recorded a pre-tax expense of $11.0 million related to the settlement of the Eric Shafer et al. v. Rent-A-Center, Inc. and Victor E. Johnson et al. v. Rent-A-Center, Inc. coordinated matters pending in state court in Los Angeles, California. Due to fewer class members eligible to participate in the settlement than originally estimated, the maximum claim amount remaining to be paid has been reduced by approximately $1.9 million. To record the reduction in this liability, the Company recorded a $1.9 million pre-tax credit during the fourth quarter of 2008.
The 2009 pre-tax litigation credits discussed above for the Hilda Perez matter in the aggregate amount of $4.9 million increased net earnings per diluted share for the twelve month period ended December 31, 2009 by approximately $0.04.
The 2008 pre-tax litigation credits discussed above for both the Hilda Perez and Shafer/Johnson matters in the aggregate amount of $4.6 million increased net earnings per diluted share in both the fourth quarter of 2008 and for the twelve month period ended December 31, 2008 by approximately $0.04.
Gain on Extinguishment of Debt. In the fourth quarter of 2008, the Company repurchased $42.3 million in Term B loans outstanding under its revolving credit facility, resulting in a gain on extinguishment of debt, net of costs, of approximately $4.3 million. This gain on extinguishment of debt increased diluted earnings per share in both the fourth quarter of 2008 and for the twelve month period ended December 31, 2008 by approximately $0.04.
Restructuring Plan Expenses. During the first quarter of 2008, the Company recorded a pre-tax restructuring expense of approximately $2.9 million in connection with the restructuring plan announced on December 3, 2007. The Company recorded additional pre-tax restructuring expenses in the third quarter of 2008 of approximately $0.2 million and in the fourth quarter of 2008 of approximately $1.4 million. The pre-tax restructuring expense in the fourth quarter of 2008 reduced net earnings per diluted share by approximately $0.01. Through the twelve month period ended December 31, 2008, the total pre-tax restructuring expense of approximately $4.5 million reduced net earnings per diluted share by approximately $0.04. The costs with respect to the restructuring plan relate primarily to lease terminations, fixed asset disposals and other miscellaneous items.
Rent-A-Center, Inc. will host a conference call to discuss the fourth quarter and year end results, guidance and other operational matters on Tuesday morning, February 2, 2010, at 10:45 a.m. EST. 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, currently operates approximately 3,000 company-owned stores nationwide and in Canada and Puerto Rico. The stores generally offer high-quality, durable goods such as major consumer electronics, appliances, computers and furniture and accessories under flexible rental purchase agreements that generally allow the customer to obtain ownership of the merchandise at the conclusion of an agreed upon rental period. ColorTyme, Inc., a wholly owned subsidiary of the Company, is a national franchiser of approximately 210 rent-to-own stores operating under the trade name of "ColorTyme."
The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. These statements do not include the potential impact of any repurchases of common stock the Company may make, changes in outstanding indebtedness, or the potential impact of acquisitions or dispositions that may be completed after February 1, 2010.
FIRST QUARTER 2010 GUIDANCE:
Revenues
- The Company expects total revenues to be in the range of $692 million to $712 million.
- Store rental and fee revenues are expected to be between $577 million and $589 million.
- Total store revenues are expected to be in the range of $683 million to $703 million.
- Same store sales are expected to be in the range of down 0.5% to down 2.5%.
- The Company expects to open 5 to 10 new company-owned store locations.
- The Company expects to add financial services to approximately 5 rent-to-own store locations.
Expenses
- The Company expects cost of rental and fees to be between 22.4% and 22.8% of store rental and fee revenue and cost of merchandise sold to be between 69.0% and 74.0% of store merchandise sales.
- Store salaries and other expenses are expected to be in the range of 56.0% to 57.5% of total store revenue.
- General and administrative expenses are expected to be approximately 4.5% of total revenue.
- Net interest expense is expected to be approximately $6 million and depreciation of property assets is expected to be approximately $16 million.
- The effective tax rate is expected to be approximately 38% of pre-tax income.
- Diluted earnings per share are estimated to be in the range of $0.64 to $0.70.
- Diluted shares outstanding are estimated to be between 66.0 million and 67.0 million.
FISCAL 2010 GUIDANCE:
Revenues
- The Company expects total revenues to be in the range of $2.700 billion and $2.760 billion.
- Store rental and fee revenues are expected to be between $2.325 billion and $2.375 billion.
- Total store revenues are expected to be in the range of $2.668 billion and $2.728 billion.
- Same store sales are expected to increase approximately 1%.
- The Company expects to open 25 to 35 new company-owned store locations.
- The Company expects to add financial services to approximately 50 rent-to-own store locations.
Expenses
- The Company expects cost of rental and fees to be between 22.3% and 22.9% of store rental and fee revenue and cost of merchandise sold to be between 73.0% and 77.0% of store merchandise sales.
- Store salaries and other expenses are expected to be in the range of 57.7% to 59.2% of total store revenue.
- General and administrative expenses are expected to be approximately 4.5% of total revenue.
- Net interest expense is expected to be approximately $25 million and depreciation of property assets is expected to be between $63 million and $68 million.
- The effective tax rate is expected to be approximately 38% of pre-tax income.
- Diluted earnings per share are estimated to be in the range of $2.35 to $2.55.
- Diluted shares outstanding are estimated to be between 66.0 million and 67.0 million.
NOTE: The 2010 annual guidance above excludes approximately $60 million in store as well as total revenues for a subsidiary engaged in the prepaid telecommunications and energy business that was in our original 2010 guidance provided in our third quarter 2009 earnings press release, but divested in November 2009. There was no earnings impact to the original 2010 guidance as a result of this divestiture. In addition, as a result of an amendment to the Company's senior credit facility announced on December 3, 2009, diluted earnings per share for fiscal 2010 were previously revised to be in the range of $2.23 to $2.43.
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. Although the Company believes that the expectations reflected in such forward-looking statements will prove to be correct, the Company can give no assurance that such expectations will prove to have been correct. The actual future performance of the Company could differ materially from such statements. Factors that could cause or contribute to such differences include, but are not limited to: uncertainties regarding the ability to open new rent-to-own stores; the Company's ability to acquire additional rent-to-own stores or customer accounts on favorable terms; the Company's ability to control costs and increase profitability; the Company's ability to successfully add financial services locations within its existing rent-to-own stores; the Company's ability to identify and successfully enter new lines of business offering products and services that appeal to its customer demographic, including its financial services products; 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 identify and successfully market products and services that appeal to its customer demographic; the Company's ability to enter into new and collect on its rental purchase agreements; the Company's ability to enter into new and collect on its short-term loans; the passage of legislation adversely affecting the rent-to-own or financial services industries; the Company's failure to comply with statutes or regulations governing the rent-to-own or financial services industries; interest rates; increases in the unemployment rate; economic pressures, such as high fuel and utility costs, affecting the disposable income available to the Company's targeted consumers; changes in the Company's stock price and the number of shares of common stock that it may or may not repurchase; changes in estimates relating to self-insurance liabilities and income tax and litigation reserves; changes in the Company's effective tax rate; the Company's ability to maintain an effective system of internal controls; changes in the number of share-based compensation grants, methods used to value future share-based payments and changes in estimated forfeiture rates with respect to share-based compensation; the resolution of any material 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, 2008, and its quarterly reports for the quarters ended March 31, 2009, June 30, 2009, and September 30, 2009. 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.
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Rent-A-Center, Inc. and Subsidiaries |
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STATEMENT OF EARNINGS HIGHLIGHTS |
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| (In Thousands of Dollars, except per share data) |
Three Months Ended December 31, |
|||||||||||||||||
| 2009 | 2008 | 2008 | ||||||||||||||||
|
(GAAP Earnings) |
Before Significant Items (Non-GAAP Earnings) | After Significant Items (GAAP Earnings) | ||||||||||||||||
| Total Revenue |
$ |
672,913 |
$ | 699,750 | $ | 699,750 | ||||||||||||
| Operating Profit |
|
74,582 |
60,657 | 63,865 |
(1)(2) |
|||||||||||||
| Net Earnings |
|
43,694 |
31,386 | 36,146 |
(1)(2)(3) |
|||||||||||||
| Diluted Earnings per Common Share |
$ |
0.66 |
$ | 0.47 | $ | 0.54 |
(1)(2)(3) |
|||||||||||
| Adjusted EBITDA |
$ |
90,598 |
$ | 83,271 | $ | 83,271 | ||||||||||||
| Reconciliation to Adjusted EBITDA: | ||||||||||||||||||
| Earnings Before Income Taxes |
$ |
70,082 |
$ | 49,756 | $ | 57,299 | ||||||||||||
| Add back: | ||||||||||||||||||
| Litigation Expense (Credit) |
|
-- |
-- | (4,607 | ) | |||||||||||||
| Restructuring Expense |
|
-- |
-- | 1,399 | ||||||||||||||
| Gain on extinguishment of debt |
|
-- |
-- | (4,335 | ) | |||||||||||||
| Interest Expense, net |
|
4,500 |
10,901 | 10,901 | ||||||||||||||
| Depreciation of Property Assets |
|
15,601 |
18,114 | 18,114 | ||||||||||||||
| Amortization and Write-down of Intangibles |
|
415 |
4,500 | 4,500 | ||||||||||||||
| Adjusted EBITDA |
$ |
90,598 |
$ | 83,271 | $ | 83,271 | ||||||||||||
| (In Thousands of Dollars, except per share data) | Twelve Months Ended December 31, | |||||||||||||||||
| 2009 | 2009 | 2008 | 2008 | |||||||||||||||
| Before Significant Items (Non-GAAP Earnings) | After Significant Items (GAAP Earnings) | Before Significant Items (Non-GAAP Earnings) | After Significant Items (GAAP Earnings) | |||||||||||||||
| Total Revenue | $ | 2,751,956 | $ | 2,751,956 | $ | 2,884,172 | $ | 2,884,172 | ||||||||||
| Operating Profit | 291,455 | 296,324 |
(4) |
274,278 | 274,388 |
(1)(2) |
||||||||||||
| Net Earnings | 164,823 | 167,855 |
(4) |
136,819 | 139,624 |
(1)(2)(3) |
||||||||||||
| Diluted Earnings per Common Share | $ | 2.48 | $ | 2.52 |
(4) |
$ | 2.04 | $ | 2.08 |
(1)(2)(3) |
||||||||
| Adjusted EBITDA | $ | 360,086 | $ | 360,086 | $ | 363,598 | $ | 363,598 | ||||||||||
| Reconciliation to Adjusted EBITDA: | ||||||||||||||||||
| Earnings Before Income Taxes | $ | 265,501 | $ | 270,370 | $ | 216,897 | $ | 221,342 | ||||||||||
| Add back: | ||||||||||||||||||
| Litigation Expense (Credit) | -- | (4,869 | ) | -- | (4,607 | ) | ||||||||||||
| Restructuring Expense | -- | -- | -- | 4,497 | ||||||||||||||
| Gain on extinguishment of debt | -- | -- | -- | (4,335 | ) | |||||||||||||
| Interest Expense, net | 25,954 | 25,954 | 57,381 | 57,381 | ||||||||||||||
| Depreciation of Property Assets | 65,788 | 65,788 | 72,683 | 72,683 | ||||||||||||||
| Amortization and Write-down of Intangibles | 2,843 | 2,843 | 16,637 | 16,637 | ||||||||||||||
| Adjusted EBITDA | $ | 360,086 | $ | 360,086 | $ | 363,598 | $ | 363,598 | ||||||||||
(1) Includes the effects of a $4.6 million pre-tax litigation credit in the fourth quarter of 2008 related to the Hilda Perez and Shafer/Johnson matters. This litigation credit increased diluted earnings per share by approximately $0.04 for both the fourth quarter of 2008 and twelve months ended December 31, 2008.
(2) Includes the effects of a $1.4 million pre-tax restructuring expense in the fourth quarter of 2008 related to the 2007 restructuring plan. The restructuring expense reduced diluted earnings per share by approximately $0.01 for the fourth quarter of 2008 and the total pre-tax restructuring expense of $4.5 million for the twelve months ended December 31, 2008 reduced diluted earnings per share by approximately $0.04.
(3) Includes the effects of a $4.3 million pre-tax gain on the extinguishment of debt in the fourth quarter of 2008. The gain on the extinguishment of debt increased diluted earnings per share by approximately $0.04 for both the fourth quarter of 2008 and twelve months ended December 31, 2008.
(4) Includes the effects of $4.9 million pre-tax litigation credits in the first quarter and second quarter of 2009 related to the Hilda Perez matter. The litigation credits increased diluted earnings per share by approximately $0.04 for the twelve months ended December 31, 2009.
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SELECTED BALANCE SHEET HIGHLIGHTS |
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Selected Balance Sheet Data: (in Thousands of Dollars) |
December 31, 2009 | December 31, 2008 | ||||
| Cash and Cash Equivalents | $ | 101,803 | $ | 87,382 | ||
| Accounts Receivable | 63,439 | 51,766 | ||||
| Prepaid Expenses and Other Assets | 50,680 | 59,217 | ||||
| Rental Merchandise, net | ||||||
| On Rent | 589,066 | 634,946 | ||||
| Held for Rent | 160,932 | 184,108 | ||||
| Total Assets | 2,443,997 | 2,496,702 | ||||
| Senior Debt | 711,158 | 721,712 | ||||
| Subordinated Notes Payable | - | 225,375 | ||||
| Total Liabilities | 1,196,483 | 1,417,500 | ||||
| Stockholders' Equity | 1,247,514 | 1,079,202 | ||||
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Rent-A-Center, Inc. and Subsidiaries |
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CONSOLIDATED STATEMENTS OF EARNINGS |
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| (In Thousands of Dollars, except per share data) | Three Months Ended December 31, | |||||||
| 2009 | 2008 | |||||||
| Unaudited | ||||||||
| Store Revenue | ||||||||
| Rentals and Fees | $ | 583,650 | $ | 608,674 | ||||
| Merchandise Sales | 49,805 | 58,627 | ||||||
| Installment Sales | 15,336 | 11,508 | ||||||
| Other | 15,783 | 11,847 | ||||||
| 664,574 | 690,656 | |||||||
| Franchise Revenue | ||||||||
| Franchise Merchandise Sales | 7,193 | 7,897 | ||||||
| Royalty Income and Fees | 1,146 | 1,197 | ||||||
| Total Revenue | 672,913 | 699,750 | ||||||
| Operating Expenses | ||||||||
| Direct Store Expenses | ||||||||
| Cost of Rentals and Fees | 131,740 | 138,913 | ||||||
| Cost of Merchandise Sold | 37,729 | 41,389 | ||||||
| Cost of Installment Sales | 5,486 | 4,745 | ||||||
| Salaries and Other Expenses | 380,083 | 410,465 | ||||||
| Franchise Cost of Merchandise Sold | 6,833 | 7,435 | ||||||
| 561,871 | 602,947 | |||||||
| General and Administrative Expenses | 36,045 | 31,646 | ||||||
| Amortization and Write-down of Intangibles | 415 | 4,500 | ||||||
| Litigation Expense (Credit) | -- | (4,607 | ) | |||||
| Restructuring Expense | -- | 1,399 | ||||||
| Total Operating Expenses | 598,331 | 635,885 | ||||||
| Operating Profit | 74,582 | 63,865 | ||||||
| Gain on extinguishment of debt | -- | (4,335 | ) | |||||
| Interest Expense | 4,648 | 13,535 | ||||||
| Interest Income | (148 | ) | (2,634 | ) | ||||
| Earnings before Income Taxes | 70,082 | 57,299 | ||||||
| Income Tax Expense | 26,388 | 21,153 | ||||||
| NET EARNINGS | 43,694 | 36,146 | ||||||
| BASIC WEIGHTED AVERAGE SHARES | 65,844 | 66,332 | ||||||
| BASIC EARNINGS PER COMMON SHARE | $ | 0.66 | $ | 0.54 | ||||
| DILUTED WEIGHTED AVERAGE SHARES | 66,433 | 66,755 | ||||||
| DILUTED EARNINGS PER COMMON SHARE | $ | 0.66 | $ | 0.54 | ||||
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Rent-A-Center, Inc. and Subsidiaries |
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| CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||
| (In Thousands of Dollars, except per share data) | Twelve Months Ended December 31, | |||||||
| 2009 | 2008 | |||||||
| Unaudited | ||||||||
| Store Revenue | ||||||||
| Rentals and Fees | $ | 2,346,849 | $ | 2,505,268 | ||||
| Merchandise Sales | 261,631 | 256,731 | ||||||
| Installment Sales | 53,035 | 41,193 | ||||||
| Other | 57,601 | 42,759 | ||||||
| 2,719,116 | 2,845,951 | |||||||
| Franchise Revenue | ||||||||
| Franchise Merchandise Sales | 28,065 | 33,283 | ||||||
| Royalty Income and Fees | 4,775 | 4,938 | ||||||
| Total Revenue | 2,751,956 | 2,884,172 | ||||||
| Operating Expenses | ||||||||
| Direct Store Expenses | ||||||||
| Cost of Rentals and Fees | 530,018 | 572,900 | ||||||
| Cost of Merchandise Sold | 188,433 | 194,595 | ||||||
| Cost of Installment Sales | 18,687 | 16,620 | ||||||
| Salaries and Other Expenses | 1,556,074 | 1,651,805 | ||||||
| Franchise Cost of Merchandise Sold | 26,820 | 31,705 | ||||||
| 2,320,032 | 2,467,625 | |||||||
| General and Administrative Expenses | 137,626 | 125,632 | ||||||
| Amortization and Write-down of Intangibles | 2,843 | 16,637 | ||||||
| Litigation Expense (Credit) | (4,869 | ) | (4,607 | ) | ||||
| Restructuring Expense | -- | 4,497 | ||||||
| Total Operating Expenses | 2,455,632 | 2,609,784 | ||||||
| Operating Profit | 296,324 | 274,388 | ||||||
| Gain on extinguishment of debt | -- | (4,335 | ) | |||||
| Interest Expense | 26,791 | 66,241 | ||||||
| Interest Income | (837 | ) | (8,860 | ) | ||||
| Earnings before Income Taxes | 270,370 | 221,342 | ||||||
| Income Tax Expense | 102,515 | 81,718 | ||||||
| NET EARNINGS | 167,855 | 139,624 | ||||||
| BASIC WEIGHTED AVERAGE SHARES | 65,986 | 66,606 | ||||||
| BASIC EARNINGS PER COMMON SHARE | $ | 2.54 | $ | 2.10 | ||||
| DILUTED WEIGHTED AVERAGE SHARES | 66,567 | 67,191 | ||||||
| DILUTED EARNINGS PER COMMON SHARE | $ | 2.52 | $ | 2.08 | ||||
SOURCE: Rent-A-Center, Inc.
Rent-A-Center, Inc.
David E. Carpenter, 972-801-1214
Vice President of Investor Relations
david.carpenter@rentacenter.com