04-29-02
RTO Online

Rent A Center beat estimates by over 18% in Q1. The nations largest Rent to Own chain reported a record $59 million (13.4%) increase in revenue over Q1 2001 today. Same store sales increased nearly 8% for the same period.

Earnings followed suit, coming in at $1.02 per diluted share. A whopping increase of 74.3% over Q1 2001. The increase in net earnings and earnings per diluted share is attributable to operational improvements in existing stores and a

 renewed focus on cost control.

Even after adjusting reported results for the first quarter of 2001 to exclude the effects of goodwill amortization, net earnings and diluted earnings per common share increased $12.4 million and $0.34, respectively, for an increase in diluted earnings of 39.5%.

Mark Speese
Chairman
"The outstanding results for the first quarter of 2002 are a tribute to the hard work and dedication of every employee in the organization,"

Last year, RTO Online reported "There's a new sherriff in town, and his name is Mark Speese". Since his return, the entire Rent A Center orginization has experienced an epiphany...."we're in the rent to own business"

Mark Speese
"Since my return seven months ago, everyone has embraced the renewed focus on profitability and expense management while continuing to capitalize on the strong demand for our products and services, and we are now witnessing the results,"....

 

Predictions
Never one to be shy, Mr. Speese predicts great things for his company in 2002 and beyond.

Mark Speese
"Due to the strong trends in demand, as well as the effectiveness of our business model, we are pleased to announce increased earnings expectations of between $4.30 and $4.40 per diluted share for 2002 and a long term earnings growth rate of approximately 15% a year beginning in 2003."

Rent A Center also announced it's plan to increase store count by 50 to 80 locations in 2002, and to open 100 to 120 stores per year beginning in 2003. And possibly the most exciting announcement....Rent A Center expects to fund this growth internally.

Mitch Fadel
President
"Our strong cash flow in the first quarter gives us a high level of confidence in our ability to further reduce our leverage, as well as achieve our new store growth targets with our own capital."

I think I have a tear...

I have the pleasure of communicating with many Rent A Center store manages on a regular basis. I am convinced that the high level of professionalism exhibited at the store level, will propel Rent A Center to even greater heights.

See the entire earnings release here

Listen in the the scheduled earnings conference call Friday, April 30 10:45 AM

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