"This is the fourth quarter in a row that we
have posted positive same store revenue increases. While we
ended the quarter with fewer rental agreements than we had
hoped, the fundamentals of our business are strong"
William Morgenstern, Rent-Way's Chairman and
Rent-Way, Inc. (RWY) today reported consolidated revenues of $124.1 million
for its fiscal 2004 third quarter ended June 30, 2004 versus $122.4
million in the same quarter last year.
Revenues from Rent-Way's rental
business (which excludes Rent-Way's dPi Teleconnect unit) were $117.5 million
versus $113.4 million in the same quarter last year. Same store revenues
increased 3.4% versus last year's quarter. Consolidated operating income in the
quarter was $11.8 million, down from $15.2 million in the same period last year.
"This is the fourth quarter in a row that we have posted positive same store
revenue increases. While we ended the quarter with fewer rental agreements than
we had hoped, the fundamentals of our business are strong," stated William
Morgenstern, Rent-Way's Chairman and CEO. "Despite a somewhat slow retail
environment, we look forward to ending fiscal 2004 on a strong note. In
addition, at the end of the last quarter we announced that we intended to open
6-8 new stores by the end of the 2004 calendar year. As a result of recent
merger activity in our industry, we believe the opportunity to better than
double that number exists and we are taking the necessary steps to seize the
opening we see in the market place."
William McDonnell, Vice President and Chief Financial Officer stated, "For the
quarter, we met our guidance on revenue and operating income. Looking forward to
the next quarter, based on our best estimates today, we expect to hit the mid to
high end of our original fourth quarter revenue target and the low to mid point
of our operating margin target. Our cash flow remains strong. We reduced our
bank debt to approximately $18 million, down from about $22 million in the prior
quarter and we expect to pay off the balance by the end of the fiscal year."
Rent-Way 753 stores in 33 states.
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