07-02-02
RTO Online
RTO Enterprises, Canada's largest Rent to Own, announced improved results.
The company reports a 5.6% increase in revenue while same store sales increased
5% and store operating profit increased 20% over the same period last year.
The most striking improvement came from 'Income before Taxes' which increased
a whopping 500% to $907,000 this year, from only $170,000 Q1, 2001.
Net income (my two favorite words) also increased 5 fold from Q1 2001.
David Ingram
CEO RTO Enterprises
"I am very pleased with the Company's 2002 first quarter results. The
programs introduced in the second half of 2001 are continuing to have a
positive impact on our same store revenue growth. The 5% increase in same
store revenue for Q1 compares with a decrease of 1.2% for the same period in
2001..."
"We continue to set the bar higher than it's been before and with better
execution of the basics, we can continue to expect improved results as seen
in Q1. These achievements illustrate the strength of our business model and
the growth potential for the Company across Canada."
Due to substantial losses in recent years, RTO Enterprises will pay no income
tax for the foreseeable future. But the company has seen 3 consecutive quarters
of pre-tax income growth.
RTO opened 1 new store, relocated 5, and remodeled 7 stores in Q1. According
to CEO David Ingram "We are currently finalizing 4 relocations and pursuing 6
new store opportunities, and with 1 store committed to open in Q2, we are on
target with our plan for 7 new stores in 2002."
Donald K. Johnson
Chairman of the Board.
"We are delighted with the Company's performance in the first quarter. These
results confirm that the new management team has the right strategy and that
its execution is on track."
Despite the incremental improvements, RTO Enterprises stock continues to
suffer, closing the day at $0.60 per share, down 7.69%. RTO Online has added
coverage of RTO Online to our
stock listing page.
CONSOLIDATED STATEMENTS OF INCOME AND DEFICIT
(unaudited)
Three months
ended
March 31
(in 000's, except earnings per share) 2002 2001
----------------------------------------------------------------------
$ $
REVENUE
Rental 15,337 14,332
Other 2,481 2,538
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17,818 16,870
----------------------------------------------------------------------
EXPENSES
Salaries and benefits 5,544 5,203
Selling, general and administrative 2,398 2,387
Rent 1,951 1,875
Automotive and travel 658 816
----------------------------------------------------------------------
10,551 10,281
----------------------------------------------------------------------
Amortization
Amortization of rental assets 5,601 5,296
Amortization of capital assets, goodwill
and intangible assets 278 508
----------------------------------------------------------------------
5,879 5,804
----------------------------------------------------------------------
Total operating expenses and
amortization 16,430 16,085
----------------------------------------------------------------------
Operating income 1,388 785
Interest expense 481 615
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Income before income taxes 907 170
----------------------------------------------------------------------
Income tax expense 363 73
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Net income for the period 544 97
----------------------------------------------------------------------
Deficit, beginning of period (3,996) (2,126)
----------------------------------------------------------------------
Deficit, end of period (3,452) (2,029)
----------------------------------------------------------------------
Earnings per share
Basic and diluted earnings per share 0.01 0.00
----------------------------------------------------------------------
end
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