Rent-Way 2Q revenues rise 3.7%
By Furniture Today Staff -- Furniture Today, May 2, 2004
ERIE, Pa. — ERIE, Pa.— Rent-Way reported $6.3 million in net income in its second quarter ended March 31, versus a loss a year earlier. Operating income, including a restructuring charge in last year's quarter and amortization of intangibles in both quarters, nearly doubled.
The 753-store rent-to-own operator said revenues rose 3.7% from a year ago to $135 million, with core rental revenue climbing 6.6%. Same-store revenue was up 6.9%.
In the second quarter last year, Rent-Way racked up big one-time charges, including a $14 million settlement of a class-action lawsuit regarding securities claims, and a $13.4 million loss from discontinued operations, resulting in a $27.9 million net loss.
"I am very pleased with our performance in the quarter," said William Morgenstern, chairman and CEO. "Since our June 2003 refinancing, we have had three consecutive full quarters of period-over-period increases in revenues and operating income, and positive store comps.
"We will continue to make investments in marketing, in our employees and in our stores in order to ensure strong top-line performance during the remainder of fiscal 2004 and beyond," he said.
The company said EBITDA in the quarter was $19.1 million, up from $13.1 million a year earlier. It defines the figure as operating income plus depreciation of property and equipment and amortization of intangibles.
| Rent-Way | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are loses or declines. | |||
| Quarter ended 3/31 | 2004 | 2003 | Change |
| Revenues (a) | $135,045,000 | $130,239,000 | 3.7% |
| Operating income (b) | 15,351,000 | 10,211,000 | 50.3% |
| Net income | (c)6,323,000 | (d)(27,918,000) | — |
| Earnings per share | 0.22 | (1.09) | — |
| (a) Includes non-rental revenues of $23.9 million in the 2004 quarter and $25.8 million in the 2003 quarter. (b) Revenues minus depreciation and amortization of rental merchandise and property and equipment, cost of prepaid phone service, salaries and wages, net advertising, occupancy and other operating expenses. (c) After preferred dividends of $403,000; includes a $437,000 net loss from discontinued operations. (d) Includes a $2.2 million net loss from discontinued operations, a $2.2 million pretax restructuring charge and a $14 million pretax charge for the settlement of a class-action lawsuit. |
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Rent-Way sales inch up, loss cut
Nov 23, 2003 -
Rent-Way revenues up 1.8%
Dec 26, 2004
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