Rent-Way yearly revenues rise 2.2%; net income up 12.6%
By Furniture Today Staff -- Furniture Today, December 18, 2005
Erie, Pa. — Rental-purchase retailer Rent-Way said revenues were up 2.2% in its year ended Sept. 30, while net income jumped 12.6%.
The company, which operates 792 stores in 34 states, said the improved numbers were recorded in spite of a weak fourth quarter that included a one-time writeoff of $2.2 million and slower sales in many Southeastern stores due to several hurricanes.
For the year, revenues totaled $515.9 million, up from $504.7 million the previous year. Net income came to $8.3 million, or 27 cents per share, compared with the previous year's $7.3 million, or 25 cents per share.
In the fourth quarter, sales were up 3.1% to $125.1 million, while net income increased 12.3% to $3.8 million.
"Despite the fourth quarter's challenges ... the fiscal year was solidly profitable, with ... operating income at the high end of our forecasted range," said President William Short.
While the fourth quarter didn't meet expectations, the rent-to-own major already is seeing business return to more historic levels during the first quarter of the new fiscal year, Short said. "Customer traffic is on the increase, and through November, our potential weekly rental revenue growth is outpacing that of the first quarter last year," he said.
The numbers include Rent-Way's dPiTeleconnect unit, which sells pre-paid phone cards. Rental revenues were $433.2 million in the year and $104.6 million in the fourth quarter.
| Rent-Way | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 9/30 | 2005 | (a)2004 | Change |
| (a) Restated. (b) Includes non-rental revenues of $20.5 million in the 2005 quarter and 2004 quarter, $82.7 million in the 2005 12 months and $87.4 million in the 2004 12 months. (c) Revenues minus depreciation and amortization of rental merchandise, cost of prepaid phone service, salaries and wages, advertising, occupancy and other operating expenses. (d) After preferred stock dividends of $566,000 in the 2005 quarter and $518,000 in the 2004 quarter; includes $7,000 in net income from discontinued operations in the 2005 quarter and a $531,000 net loss from discontinued operations in the 2004 quarter. (e) Reflects the reversal of a $9 million net gain in the 2005 quarter and a $7.2 million net gain for the conversion feature of the company's preferred stock. (f) After preferred dividends of $2.2 million in the 2005 12 months and $2.3 million in the 2004 12 months; includes net losses from discontinued operations of $355,000 in the 2005 12 months and $1.8 million in the 2004 12 months. The 2004 12 months also includes a $48,000 pretax restructuring charge. |
|||
| Revenues (b) | $125,099,000 | $121,322,000 | 3.1% |
| Operating income(c) | 6,558,000 | 9,705,000 | (32.4%) |
| Net income (d) | 3,758,000 | 3,345,000 | 12.3% |
| Earnings per share (e) | (0.16) | (0.11) | — |
| 12 months ended 9/30 | 2005 | (a)2004 | Change |
| Revenues (b) | $515,891,000 | $504,710,000 | 2.2% |
| Operating income(c) | 56,722,000 | 57,859,000 | (2.0%) |
| Net income (f) | 8,267,000 | 7,341,000 | 12.6% |
| Earnings per share | 0.27 | 0.25 | 8.0% |
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