RAC 3Q revenues rise 3.6%
By Furniture Today Staff -- Furniture Today, October 31, 2004
Plano, Texas — Rent-A-Center recorded revenues of $569.6 million in the third quarter, up 3.6% from $549.8 million in the comparable 2003 quarter. Same-store sales for the rent-to-own giant were off 5.5%.
Net income was $5.6 million, plummeting 87.3% from profits of $43.7 million a year ago. The 2004 quarter included a $47 million pretax charge for the settlement of class action litigation and a $4.2 million pretax charge related to the refinancing of the company's senior credit facility. Excluding the special charges, net income in the latest quarter was $37.6 million.
The 2003 quarter included a $7.5 million pretax charge related to the refinancing.
For the first three quarters, RAC's revenues were $1.73 billion, up 3.5% from $1.67 billion a year ago. Same-store sales decreased 3.4%. Net income in the 2004 nine months was $109 million, compared with $130 million a year ago. Both periods included special charges, most notably the $47 million pretax charge in the latest quarter.
Chairman and CEO Mark Speese said, "While we have seen an increase in total revenues, our net earnings have been negatively affected by the weakness in our same-store sales, which we believe reflects, among other things, higher fuel and energy costs that disproportionately constrains demand among our customer base.
"We are continuing to focus on profitably increasing our same-store sales by implementing new marketing and advertising initiatives to improve our store operations."
For the final quarter of 2004, RAC expects total revenues in the range of $583 million to $588 million, with same-store sales down 2.5% to 3.5%. Earnings per share are anticipated to be in a range of 55 cents to 57 cents.
Rent-A-Center
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 9/30 | 2004 | 2003 | Change |
| (a) Includes non-rental revenues of $42.7 million in the 2004 quarter, $39.8 million in the 2003 quarter, $151.2 million in the 2004 nine months and $137.3 million in the 2003 nine months. (b) Revenues minus direct store expenses, franchise operation expenses, and general and administrative expenses. (c) Includes a $47 million pretax charge for litigation settlement in both periods and a $4.2 million pretax finance charge from recapitalization. (d) Includes pretax charges from recapitalization of $7.5 million in the 2003 quarter and $35.3 million in the 2003 nine months. (e) Based on average shares outstanding of 79.9 million in the 2004 quarter, 84.4 million in the 2003 quarter, 81.6 million in the 2004 nine months and 88.3 million in the 2003 nine months. |
|||
| Revenues (a) | $569,607,000 | $549,825,000 | 3.6% |
| Operating income (b) | 74,100,000 | 90,685,000 | (18.3%) |
| Net income | (c)5,573,000 | (d)43,738,000 | (87.3%) |
| Earnings per share (e) | 0.07 | 0.52 | (86.5%) |
| 9 months ended 9/30 | 2004 | 2003 | Change |
| Revenues (a) | $1,727,972,000 | $1,669,491,000 | 3.5% |
| Operating income (b) | 262,628,000 | 290,383,000 | (9.6%) |
| Net income | (c)108,976,000 | (d)129,997,000 | (16.2%) |
| Earnings per share (e) | 1.34 | 1.47 | (8.8%) |
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Rent-A-Center's 3Q revenues up slightly
Nov 13, 2005 -
Rent-A-Center reports slight 2Q revenue gain
Aug 27, 2006 -
RAC 2Q revenues rise 3.6%
Aug 8, 2004
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