Share this on

Rent-A-Center revenues up 8.9% in fourth quarter

Same-store revenues increased 2.7%

Jay McIntosh -- Furniture Today, January 31, 2012

PLANO, Texas - Rent-A-Center said its revenues rose 8.9% in the fourth quarter to $737.5 million, largely driven by a gain in its RAC Acceptance business generated by kiosks in traditional furniture stores.

Same-store revenues increased 2.7%, the company said. Offsetting the gain somewhat was a reduction in revenue as the company exited its financial services business in late 2010.

Earnings jumped 54.8% to $49.3 million or 83 cents per share from $31.9 million or 49 cents per share a year earlier, largely because the company had smaller restructuring and impairment charges this year. Excluding those charges in both periods, adjusted earnings per share were up 19.7% in the 2011 quarter.

Mark Speese, chairman and CEO, said the rent-to-own merchant was "generally pleased" with the fourth-quarter and full-year performance.

"While our top line was somewhat tempered a bit due to our core rent-to-own customers remaining focused on value, our customer demand remained strong," Speese added. "In addition, our RAC Acceptance business reflected continued customer demand with revenue contribution of over $60 million in the quarter and over $190 million for the year."

For the full year, revenues were up 5.5% to $2.88 billion, again driven largely by the RAC Acceptance business. Same-store sales rose 0.8%.

Net earnings for the year were $164.6 million or $2.66 per share, compared with $171.6 million or $2.60 per share in 2010. Both years were affected by various restructuring and other charges, and excluding those, EPS of $2.91 was up 3.6% last year, according to the company.

Rent-A-Center also updated its guidance for 2012, including revenue growth of 7% to 10% and same-store revenue gains of 2.5% to 4.5%. The company said it expects to open about 50 RTO stores in the United States, 60 in Mexico and 10 in Canada, as well as adding about 200 more RAC Acceptance kiosks.

The company said it currently operates 3,075 RTO stores and 750 RAC Acceptance kiosks, and is a franchiser of 215 additional stores through its ColorTyme subsidiary.

Share this on

Also by Jay McIntosh

Featured Company

FurnitureCore.com

FurnitureCore.com is a dynamic web application aimed at the furniture industry. Retailers and manufacturers alike will find our deep reserve of tools to be exactly what their furniture business needs.www.furniturecore.com... more