RAC 4Q revenues climb 4.8%
By Furniture Today Staff -- Furniture Today, February 8, 2005
PLANO, Texas -- Fourth-quarter revenues for rent-to-own giant Rent-A-Center rose 4.8% to $585.3 million, including $7.9 million in one-time proceeds from the sale of charged-off accounts. Net income slipped 9% to $46.9 million from $51.5 million in the final quarter of 2003.
Rent-A-Center said the revenue increase was primarily driven by incremental revenues from new and acquired stores, offset by a decrease in same-store sales of 3.7%.
RAC Chairman and CEO Mark Speese said, "We are pleased with the results for the fourth quarter, where we saw increases in revenues, customers and agreements…. We continue to generate significant cash flow from operations, which we are utilizing to enhance stockholder value by, among other things, adding 5% to 10% annually to our store base and repurchasing our outstanding common shares."
For the year, revenues were up 3.8% to $2.3 billion, including one-time income from the sale of charged-off accounts. Same-store sales decreased 3.6%.
Net earnings in 2004 fell 14.1% to $155.9 million from $181.5 million a year ago.
Through the 12-month period ending Dec. 31, RAC opened 94 new stores, acquired a total of 191 others as well as accounts from 111 additional locations, while consolidating 49 stores into existing locations and selling nine stores. The company said the net addition of 227 units increased its store base by about 8.6%.
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RAC 4Q revenues rise 4.8%
Feb 27, 2004
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