08-08-02
RTO Online

RTO Enterprises Factoids
Click here for a detailed history of RTO Enterprises
RTO Enterprises operates 130 stores under 6 brands in all 10 Canadian Provinces
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Listed only on the Toronto Stock Exchange under the symbol (RTO)
Trivia
Gordon Reykdal, founder of RTO Enterprises, was appointed Honorary Consul of the Republic of Iceland in March 2002
Mr. Reykdal was quoted in Today's Entrepreneur..."The big attraction from investors was that I had a very solid investment plan. When I started the first store, I basically used that as my model for investors because I knew I could produce results in that store,"..."I made that store very profitable in short order, so I had something to substantiate the plan I showed investors."

RTO Enterprises announced significantly improved results for Q2. Some highlights...

• Same store sales up 5.9%

• Revenue up 8.3%

• Operating income before tax more than doubled to $1.46 million from $676,000 in 01

• Pre tax income up by a factor of 10. $946,000 versus $80,000 Q2 2001

• Net Income $666,000 from a loss of $2.5 million in the comparable period last year.

RTO Enterprises implemented a 10 for 1 reverse stock split and began trading the 'consolidated' shares on August 6th. Reverse splits have the effect of raising earnings per share. Earnings per share for consolidated shares are $0.15. On a 'pre-reverse split' basis, earnings would have been $0.015 per share.

David Ingram
CEO
press release
"We have continued to see strength in our business model which has produced sequential same-store revenue growth since the third quarter in 2001 and much improved net income for the comparable period. For the six months ended June 30, 2002, our costs, as a percentage of revenue, decreased 2.5% over the comparable period last year. Coupled with our revenue improvement of 7%, this translated into a 19% increase in store operating income".

The company attributes the rise in revenue and earnings to a combination of higher value product, increased product deliveries, a reduction in delinquent accounts and a higher rental agreement portfolio.

The company opened 2 new stores in the quarter and are negotiating 8 more leases. RTO closed 4 underperforming stores in Q2.

David Ingram
CEO
"With no more closures anticipated, we continue to be on track for our target of 137 locations by year-end."

Donald K. Johnson
Chairman of the Board
"Our second quarter results provide further confirmation that David Ingram and his management team have restored the Company to consistent profitability. They also have built the platform to capitalize on the significant growth opportunities for RTO Enterprises in the under served Canadian rental purchase market. Our management and Board are firmly committed to the conservative accounting philosophy and practices introduced two years ago."

RTO Enterprises operates 130 stores in 80 cities in all 10 Canadian Provinces.

See our detailed history titled RTO Enterprises, our neighbors to the North
 

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