Rent-Way sales inch up, loss cut
By Furniture Today Staff -- Furniture Today, November 23, 2003
Erie, Pa. — Rent-to-own company Rent-Way said revenue of $118.9 million in its fourth quarter ended Sept. 30 was up 0.9% from the same period a year ago, excluding discontinued operations.
The figures don't count the 295 stores Rent-Way sold to Rent-A-Center earlier this year.
Same-store revenues were up 2.5% in the quarter. The net loss was $971,000, compared with a $7.9 million loss a year ago. Operating income was up 51.5% from a year ago to $9.5 million.
For the full fiscal year, revenue of $491.3 million was down 0.4% from the previous year, excluding the stores sold, with same-store business up 0.8%.
The company lost $29.9 million in the latest year, partly because of a $14 million expense from the settlement of a class-action lawsuit and a $15.8 million loss from the stores sold, compared with a $76.5 million loss in fiscal 2002.
"The investments we have made and the efforts expended by our team to grow our business are beginning to pay off," said William Morgenstern, Rent-Way chairman and chief executive officer. "Our same-store sales increase exceeded our expectations in the last quarter. For the year, we increased our active rental agreement count by over 19,000 compared to losing over 26,000 in fiscal 2002."
Rent-Way, which now has 753 stores in 33 states, projects revenues of $461 million to $470 million in the current fiscal year, excluding its prepaid phone service business. In fiscal 2003, the comparable revenue figure was $456 million. The company expects operating income of $38.9 million to $43.6 million.
EBITDA, defined as operating income plus depreciation and amortization, amounted to $13.8 million in the fourth quarter, up 13.1% from a year earlier, and $57.6 million for the year, up 14.5%, the company said.
| Rent-Way | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are loses or declines. | |||
| Quarter ended 9/3020032002Change | |||
| (a) Includes non-rental revenues of $21.9 million in the 2003 quarter. $24 million in the 2002 quarter, $93.9 million in the 2003 year and $99.3 million in the 2002 year. (b) Revenues minus depreciation and amortization of rental property and property and equipment, cost of prepaid phone service, salaries and wages, net advertising, occupancy and other operating expenses. (c) After preferred dividends of $389,000 in the 2003 quarter and $513,000 in the 2003 year; includes pretax restructuring charges of $43,000 in the 2003 quarter and $3 million in the 2003 year and net losses from discontinued operations of $194,000 in the 2003 quarter and $15.8 million in the 2003 year. The 2003 year also includes a $14 million pretax charge on the settlement of a class action lawsuit. (d) Includes net losses from discontinued operations of $1.6 million in the 2002 quarter and $112,000 in the 2002 year. The 2002 year also includes a $41.5 million extraordinary charge, the cumulative effect of an accounting change. | |||
| Revenues (a) | $118,858,000 | $117,836,000 | 0.9% |
| Operating income (b) | 9,471,000 | 6,253,000 | 51.5% |
| Net income | (c)(971,000) | (d)(7,858,000) | — |
| Earnings per share | (0.04) | (0.31) | — |
| Year ended 9/30 | 2003 | 2002 | Change |
| Revenues (a) | $491,310,000 | $493,370,000 | (0.4%) |
| Operating income (b) | 40,899,000 | 25,646,000 | 59.5% |
| Net income | (c)(29,890,000) | (d)(76,472,000) | — |
| Earnings per share | (1.16) | (3.06) | — |
