RAC earnings up 10.2% in 4Q
By Furniture Today Staff -- Furniture Today, February 24, 2002
PLANO, Texas — Rent-A-Center posted fourth-quarter net earnings of $26 million, up 10.2%, citing growing demand and cost controls.
Total revenues for the rent-to-own giant rose 16.3% in the quarter to $479 million. Same-store revenues grew 9.7%.
Mark Speese, chairman and chief executive officer of the 2,281-store company, expects enhanced margins in the coming year.
In a conference call with analysts, Speese warned of continuing "headwinds" from a discount program that Rent-A-Center rolled out last summer. The company has re-established normal rates and contract terms but is feeling some lingering effects, he said.
Excluding a one-time gain in 2000 and a one-time charge in 2001, RAC reported net earnings of $97.5 million for the year, up 6.9%.
The gain and charge involved class-action lawsuits. Including the charge and gain, net earnings for the year decreased to $88.5 million from $103 million in 2000.
The company opened 15 stores and acquired four in the fourth quarter. So far this year, it has opened four stores and plans to open a total of 60 to 80 units this year as well as pursue acquisitions, which it anticipates funding with cash flow.
For the first quarter, the company expects total revenues in the range of $475 million to $483 million. Same-store sales are expected to increase 4% to 6%.
| Quarter ended 12/31 | 2001 | 2000 | Change |
|---|---|---|---|
| Revenues(a) | $478,993,000 | $411,875,000 | 16.3% |
| Operating income(b) | 66,881,000 | 67,762,000 | (1.3%) |
| Net income(c) | 22,699,000 | 20,960,000 | 8.3% |
| Earnings per share | 0.70 | 0.67 | 4.5% |
| Year ended 12/31 | 2001 | 2000 | Change |
| Revenues(a) | $1,808,528,000 | $1,601,614,000 | 12.9% |
| Operating income(b) | 266,780,000 | 272,933,000 | (2.3%) |
| Net income(d) | 73,129,000 | 92,607,000 | (21.0%) |
| Earnings per share | 2.39 | 2.96 | (19.3%) |
| (a) Includes non-rental revenues of $41.5 million in the 2001 quarter, $35.2 million in the 2000 quarter, $157.7 million in the 2001 year and $142 million in the 2000 year. (b) Revenues minus direct store expenses, franchise operation expenses and general and administrative expenses. (c) After preferred dividends of $3.3 million in the 2001 quarter and $2.7 million in the 2000 quarter. (d) After preferred dividends of 15.4 million in the 2001 year and $10.4 million in the 2000 year. The 2001 year also includes a $16 million pretax charge for non-recurring legal items and the 2000 year also includes a $22.4 million pretax gain for non-recurring legal items. | |||
-
Rent-A-Center reports slight 2Q revenue gain
Aug 27, 2006 -
Rent-A-Center's 3Q revenues up slightly
Nov 13, 2005 -
RAC 2Q revenues rise 3.6%
Aug 8, 2004 -
RAC 4Q profit down 25.2%
Feb 26, 2006 -
RAC 3Q revenues rise 3.6%
Nov 14, 2004
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