Share this on

Rent-A-Center’s revenues jump 9.3% in fourth quarter

2006 acquisition of Rent-Way plays a big role

By Furniture Today Staff -- Furniture Today, February 5, 2008

PLANO, Texas — Rent-A-Center reported higher revenues and a small same-store gain in the fourth quarter, but posted a $5.4 million net loss because of one-time charges for restructuring and a lawsuit settlement.

The largest U.S. rent-to-own merchant said Monday that its revenues in the quarter were up 9.3% to $717 million, mainly because of the November 2006 acquisition of rival Rent-Way. Same-store revenues in the quarter were up 1% from a year earlier.

Pretax restructuring charges of $38.7 million for a previously announced store consolidation plan and $11 million to settle a California labor lawsuit resulted in the net loss, the company said. Two actions in state court in Los Angeles had accused the company of violating state wage and hour laws, and the settlement funds will be distributed to a class of employees who worked for Rent-A-Center from May 1998 through March 31 of this year.

“We are generally pleased with the results for the fourth quarter, when we saw positive same-store sales and total revenue, and adjusted diluted earnings per share that was within our guidance range,” said Chairman and CEO Mark Speese.

The $5.4 million net loss for the quarter compared with a $2.3 million loss in the same period of 2006, when earnings also were reduced by big pretax charges — $58 million to settle a New Jersey consumer lawsuit and a $2.6 million refinancing expense.

Adjusted diluted earnings per share, excluding the one-time charges, came to 42 cents in the quarter, the company said.

For the full year, total revenue was up 19.4% to $2.9 million, mainly because of the Rent-Way buy. Same-store revenue rose 2.1%. Net earnings of $76.3 million for the year were down 26% from 2006.

Share this on

Rent-A-Center's 4Q revenues jump 9.3%

Feb 10, 2008

Also by this author

Also by Staff Staff

Featured Company

Brandwise Inc.

Brandwise serves a model - not just an industry - by integrating, automating, and optimizing the entire sales channel, from wholesale Suppliers to their Reps and the Retailers they service. In short, our software helps Reps and Suppliers sell more and create... more

Related Resources

Choosing a Web Site Developer

Atlanta International Gift & Home Furnishings Market

Here is a selection of products shown at this month's International Gift & Home Furnishings Market here.

Networking at the 13th annual F/T Leadership Conference

NAPLES, Fla. — Industry executives and guests took the opportunity to network and play golf during down time at Furniture/Today's 13th annual Leadership Conference here this month.