Rent-A-Center earnings grow 13.4% in quarter
Company cites strong demand, expense control
Clint Engel -- Furniture Today, April 27, 2010
PLANO, Texas — Rent-to-own giant Rent-A-Center reported a 13.4% increase in first quarter net earnings to $51.5 million from $45.4 million a year ago, citing continued strong demand and control of its expenses.
The roughly 3,000-store company's revenues for the period ended March 31 decreased 1.3% to $718.4 million from $728.2 million, primarily due to its November divestiture of a subsidiary in the prepaid telecommunications and energy business. That business contributed about $14 million in sales to the first quarter a year ago.
Same-store sales for the most recent period were down 0.5%, the company said.
The retailer noted that net earnings for the period increased in part because of $3 million in pre-tax litigation credits related to a court-approved settlement of the Hilda Perez lawsuit in New Jersey, in which the court ruled that transactions in that state are subject to a law that caps interest rates.
RAC Chairman and CEO Mark Speese said results for the quarter exceeded the company revenues and earnings guidance "primarily due to continued strong customer demand while maintaining a strong cost discipline."
RAC also upped its earnings expectations for the year to between $2.60 and $2.80 per share, "due to the strong trend in our customer traffic, our continued focus on the customer's in-store experience as well as our expense management," Speese said. In February, the company had forecast 2010 earnings of $2.35 to $2.55 a share.
Through the first quarter, RAC generated cash flow from operations of about $71.9 million and cut its outstanding debt by about $74.9 million. After store consolidations, it ended the period with 2,997 units.
-
Rent-A-Center second-quarter earnings rise 14%
Jul 27, 2010 -
Rent-A-Center boosts profits 10% in third quarter
Oct 26, 2010
Merinos Home Furnishings opening display room, Boyles addition
HOM Furniture adds flooring to six Twin Cities stores
‘Mega vessels' likely to boost capacity, stabilize freight rates
Ernest Warsaw, founder of Sheffield Corp., dies at 91
21 companies from Turkey, Taiwan and China to exhibit at Showtime
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
VIEW ALL GALLERIES
