Our customers appear to be adapting to higher commodity prices and we continue to see business returning to more normalized levels.
William Short, President, Rent-Way

Rent-Way Inc. (RWY) reported revenues of $135.4 million the quarter ended June 30, 2006 versus $128.3 million in the same quarter last year. Revenues from Rent Way's core rental business (excludes dPi Teleconnect unit) were $131.5 million versus $124.2 million in the same quarter last year, an increase of 5.9%.

Same store rental business revenue increased 4.1% versus last year's quarter. Operating income in the quarter was $12.1 million, compared to $12.3 million in the same period last year. Net income was $2.7 million, compared to a $1.2 million net loss in the third quarter last year.

"Our customers appear to be adapting to higher commodity prices and we continue to see business returning to more normalized levels," said William Short, Rent-Way's President. "Our same-store revenue comparisons were solid in the quarter and within the range we predicted."

During the quarter, Rent Way opened 1 new store, sold 9 stores, and acquired the rental agreements of another 6 which were merged into existing RentWay locations. This brings total new store count to 8 this fiscal year.

The Company ended the quarter with $45.0 million outstanding on its bank revolver. The Company reported EBITDA for the quarter of $16.1 million versus $16.2 million in the same quarter last year. EBITDA as defined by the Company is operating income plus depreciation of property and equipment and amortization of intangibles.

Rent Way's net cash used in operations for the quarter of $6.8 million versus $8.3 million in the same quarter last year.

Rent-Way will host a conference call in connection with the release of financial results. The call will take place at 4:30 PM (EDT) on Thursday, August 3, 2006. A link to the live webcast will is available from My RTO Portfolio.


Rent-Way operates 784 stores in 34 states.