Share this on

Rent-A-Center reports $36 million fourth-quarter profit

Flat same-store sales seen as good sign

Larry Thomas -- Furniture Today, February 3, 2009

PLANO, Texas — Rent-A-Center said its fourth-quarter sales slipped 2.4%, but the nation's largest rent-to-own chain reported a profit of more than $36 million.

The company said a portion of the profit, roughly $8.9 million, was due to a pair of one-time gains. However, executives said they were generally pleased with the results, which included flat same-store sales during a period that saw many retailers reporting double-digit declines.

"Our operations performed well in a challenging environment, gaining customers in the quarter primarily with our Super Value products and also maintaining control of our collections," said Mark Speese, chairman and CEO.

Rent-A-Center ended 2008 with 3,037 company-owned stores, about 315 fewer than it had at the end of 2007.

"Our management team remains focused on enhancing the overall customer experience in our stores, improving operational efficiencies, and maintaining expense control while generating positive cash flow from operations and maintaining a solid balance sheet," said Speese.

Sales for the quarter ended Dec. 31 totaled $699.8 million, down from $717 million in the fourth quarter of 2007.

The quarterly profit of $36.1 million or 54 cents per share compares with a net loss of $5.4 million or 8 cents per share in the fourth quarter of 2007. The 2007 quarter included a one-time restructuring charge of $38.7 million or 39 cents per share.

For the full year 2008, sales totaled $2.88 billion, down slightly from $2.91 billion on 2007.

Last year's profit of $139.6 million or $2.08 per share was up sharply from $76.3 million or $1.10 per share in 2007. The 2007 figures included a one-time restructuring charge of $38.7 million and a one-time charge of $51.3 million to settle a class-action lawsuit in New Jersey.

Speese said he expects same-store sales to be flat to down 2% in the first quarter.

Share this on

Rent-A-Center reports $36 million 4Q profit

Feb 9, 2009

Also by this author

Also by Larry Thomas

Featured Company

FurnitureCore.com

FurnitureCore.com is a dynamic web application aimed at the furniture industry. Retailers and manufacturers alike will find our deep reserve of tools to be exactly what their furniture business needs.www.furniturecore.com... more