Notable Highlights

Bill Morgenstern
CEO
"I would like to take this opportunity to publicly thank and commend all the Rent Way employees in the field and corporate office for their long hours and dedication."

Mr. Morgenstern listed the following benefits of selling 295 stores.

• Allow personnel to focus on the best performing stores
• Will increase the odds of a 're-finance' of high interest debt
• Stores sold averaged 34,000 monthly revenue. Stores kept average 'nearly' 50,000
• Stores sold averaged 2-4% margin compared to 22-24% for stores kept
• Stores sold report negative comps for last 3 periods. Stores kept report positive comps for the same period

Bill Morgenstern
CEO
"The 759 stores we now operate in 33 states are a strong foundation on which we can build...You will see flat to slightly positive comps on the remaining stores going forward."

30-40 Regional managers have already been let go as a result of the sale to Rent a Center. An additional 30 - 50 "Field personnel" will be laid off in the next 24 hours. Details on the positions to be eliminated were not given. Rent Way laid off "30-40" corporate office personnel on Monday.

Rent a Center announced today that they will close approximately 177 of the 295 locations. These closures will effect an additional 700 employees. see article here

As expected, the long promised re-financing of the company's high interest debt was the major topic of the call. Several investors expressed impatience at the continued lack of a firm re-finance deal.

Rent Way stock closed down -0.15 (-4.17%) to $3.45. Rent a Center closed down -4.16 (-8.31%) to 45.89 on 5 times average volume.

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