07-29-02
RTO Online

RAC Q2 Factoids

$494 million Q2 Revenue

Same Store Sales up 6.6%

Earnings up 62.9%

Opened 16 stores

Will open 10 stores per week in 2003

Recent Rent A Center Stories Rent A Center to exceed Q2 estimates Dave Kraemer Resigns to head Bestway

Rent A Center announced its much anticipated Q2 results today.

The company reported total revenue of $494 million. An increase of 11.7%. Same store revenues were up 6.6% compared to 2001.

Rent A Center reported a monstrous 62.9% increase in net earnings over 2001. Even after adjusting reported results for the second quarter of 2001 to exclude the effects of goodwill amortization, net earnings and diluted earnings per share increased 34.1%.

The company announced earlier in July that it expected to 'beat the street', but these numbers may exceed what the most optimistic analyst expected.

Rent a Center attributes these numbers to same store growth and a continued focus on cost control.

Mark Speese
CEO
We are pleased to report another quarter of outstanding results. Our continued ability to meet, and in many cases, exceed our stated objectives in terms of revenue and earnings growth further validates our business model and speaks to the opportunities inherent in the industry for continued growth. Needless to say, we expect to be at the forefront of that growth.

The nations leader in Rent to Own also reported a $2 million charge relating to the settlement of its class action gender discrimination lawsuits, and the pre-payment of $128 million in debt during the quarter.

New Stores
Rent A Center opened 16 new stores, acquired 38, and consolidated three locations into existing stores. The Company purchased accounts from 40 additional locations during the second quarter of 2002.

So far in Q3, the Company has opened four additional new stores, consolidated one store with an existing location, and purchased accounts from four additional locations.

For the entire year ending December 31, 2002, the Company intends to add approximately 5% to 10% to its store base by opening between 60 and 80 new store locations and continuing to pursue acquisitions.

Rent A Center will begin accelerating growth in 2003 by opening up to 10 new stores per month.

Rent A Center has fueled it growth internally through cash flow...

Mark Speese
CEO
This performance clearly demonstrates our ability to grow our store base and reduce our outstanding debt simultaneously, commented Speese.

Rent A Center stock closed up +10.49% on heavy trading ahead of earnings release.

Rent A Center has scheduled an earnings conference call for July 30th. Check the Stock Listing Page for a link to Live Audio of the call. Conference calls are also listed in our Industry Event Calendar.

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