04-24-02
RTO Online

Rainbow Rentals has released it's Q1 2002 operating results. Wayland Russell, CEO of Rainbow, is proud to announce earnings of 9 cents per share for Q1. This is compared to a loss in Q4 of 2001.

Rental rate increases , a "smaller than expected decrease in units on rent", and

Rainbow Factoids

Net income flat from Q1 2001, but way up from Q4

2nd consecutive quarter of increase in comp sales

Avg rental rates increased 1$ during Q1...still behind Q1 2001

94.5% collection rates... "Higher than ever"

Gros margin up 150 basis points from Q4 2001

Pre rented merchandise accounted for 65% of deliveries in Q1

New target for all "core" stores..$88,000 and 22% operating income

Interest expense down 19%

Increased debt by 9.8 mm

Ended Q1 with 114 stores

Opened 2 in April... Opening 2 more Q2... Opening 6 more in 2002

New goal of 25 BOR max at 100+ days idle (Currently at 45)

30% new merchandise on floor

 a decrease in store level expenses were sited as the main factors in these improved results.

"The price increases and new financial and operational controls we introduced at the store level in the past four months have begun to favorably impact our bottom line," said Wayland J. Russell, chairman and chief executive officer. "Higher prices enabled us to achieve higher gross rental margins than in the fourth quarter. Meanwhile, the store-level controls introduced during the first quarter led to reduced expenses in our comparable stores."

Follow this link to the archived conference call.

View Rainbow's actual results HERE

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