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Rent-A-Center profits jump 20% in fourth quarter

Revenues for the rent-to-own giant slip 3.8%

Furniture Today Staff -- Furniture Today, February 2, 2010

PLANO, Texas — Rent-A-Center, the nation's biggest rent-to-own operator, said fourth-quarter profits jumped more than 20% on a 3.8% decline in revenues.

The bottom line was aided by one-time gains of $8.9 million, a figure that was partially offset by restructuring charges of $1.4 million.

Net income for the quarter totaled $43.7 million, or 66 cents per share. That compares with $36.1 million, or 54 cents per share, in the fourth quarter of 2008.

Fourth-quarter revenues totaled $672.9 million, down from $699.8 million in the 2008 fourth quarter. Same-store sales fell 3.2%

"We had a very strong quarter as both our financial results and operating metrics exceeded our expectations," said Mark Speese, chairman and CEO. "It was the second consecutive quarter in which both our customer count and our deliveries per store outperformed the comparable period in 2008 for each month during that quarter."

For the full year, net income totaled $167.9 million, or $2.52 per share. That's up from $139.6 million, or $2.08 per share, in 2008.

Last year's revenues came to $2.75 billion, a 4.6% drop from $2.88 billion in 2008.

The company is projecting 2010 revenues of $2.7 billion to $2.76 billion, a figure that accounts for a same-store sales increase of 1%.

Earnings projections are $2.35 to $2.55 per share.

Rent-A-Center ended 2009 with 3,007 company-owned stores. More than 200 additional franchised stores are operated under the ColorTyme name.

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