Rent-Way revenues up 1.8%
By Janice Chamberlain -- Furniture Today, December 12, 2004
Erie, Pa. — Rent-Way reported a 1.8% revenue increase in its fourth quarter, contributing to a 2.5% growth in revenues for the year. The major rent-to-own merchant also reversed losses in last year's final quarter and year to post profits this year.
Revenues in the quarter ended Sept. 30 came to $121 million, compared with $118.9 million in the year-earlier period.
In the company's core rental division, revenues were $115.7 million, up from $111.7 million in the same quarter last year. Same-store sales in the quarter increased 3.3%.
Annual revenues were $503.8 million, up from $491.3 million last year, with revenues in the core rental division increasing from $456 million a year ago to $478.8 million. For the year, same-store sales grew 5.2%.
Net income in the latest quarter was $3.5 million, compared with a net loss of $970,000 in the same quarter in 2003. Included in both periods were losses from discontinued operations and preferred stock payments. In the 2004 quarter, Rent-Way recognized a $7.2 million non-cash gain related to the conversion feature of convertible preferred stock.
In calculating earnings per share for the quarter, Rent-Way excluded the non-cash gain, resulting in a loss per share of 11 cents, compared with a loss of 4 cents for the final quarter of 2003.
For the year, net income, including a $1.8 million non-cash gain for the conversion feature, was $7.4 million, compared with a net loss of $29.9 million in 2003. Both periods also included special charges.
Chairman and CEO William Morgenstern said, "In fiscal 2004 we achieved our objectives of returning our company to profitability and driving significant top-line growth. Looking forward, we expect fiscal 2005 to be a breakout year, with continued focus on improving the top- and bottom-line performance of our core operations and simultaneously opening new stores and pursuing other new growth initiatives."
In a conference call with analysts, Morgenstern said Rent-Way plans to open 40 to 50 stores each year for the next couple of years. He said that opening 100 stores, each generating $700,000 in revenues with operating margins of 16%, along with improving the profitability of core stores, should drive company earnings to over $1 per share.
| Rent-Way | |||
|---|---|---|---|
| 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 $20.6 million in the 2004 quarter, $21.9 million in the 2003 quarter, $87.2 million in the 2004 year and $93.9 million in the 2003 year. (b) Revenues minus depreciation and amortization of rental merchandise and property and equipment, cost of prepaid phone service, salaries and wages, net advertising and occupancy. (c) After preferred stock payments of $520,000 in the 2004 quarter and $389,000 in the 2003 quarter; includes net losses from discontinued operations of $532,000 in the 2004 quarter and $195,000 in the 2003 quarter. The 2004 quarter also includes a $7.2 million credit related to the conversion feature of preferred stock. The 2003 quarter also includes a $383,000 pretax restructuring credit. (d) Reflects the elimination of the $7.2 million credit related to the conversion feature of preferred stock. (e) After preferred stock payments of $1.8 million in the 2004 year and $513,000 in the 2003 year; includes pretax restructuring charges of $48,000 in the 2004 year and $3 million in the 2003 year and net losses from discontinued operations of $2.3 million in the 2004 year and $15.8 million in the 2003 year. The 2003 year also includes a $14 million pretax charge for the settlement of a class action lawsuit. | |||
| Revenues (a) | $120,988,000 | $118,858,000 | 1.8% |
| Operating income (b) | 5,726,000 | 9,046,000 | (36.7%) |
| Net income (c) | 3,455,000 | (970,000) | — |
| Earnings per share | (d)(0.11) | (0.04) | — |
| Year ended 9/30 | 2004 | 2003 | Change |
| Revenues (a) | $503,777,000 | $491,310,000 | 2.5% |
| Operating income (b) | 41,631,000 | 40,900,000 | 1.8% |
| Net income (e) | 7,443,000 | (29,890,000) | — |
| Earnings per share | 0.25 | (1.16) | — |
-
Rent-Way revenues up 1.8%
Dec 15, 2004
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
VIEW ALL GALLERIES
