07-15-02
RTO Online

Rent A Center announced today it expects to, not only top previously reported Q2 estimates...but also raise estimates for the year.

RAC expects to exceed the high end of estimates by $.03 to $.04, even after an $.08 per diluted share charge for "Early retirement of debt, and certain legal settlements." Higher than expected revenues allowed Rent A Center to pre-pay $128 million in debt during Q2.

Mark E. Speese
CEO
"Current business trends remain solid, and the results we expect to report for the second quarter of 2002 speak to the success of our business model and our business plan. Our increased guidance is primarily a result of higher than anticipated revenues and the benefit of the cost control programs introduced last fall. Furthermore, we continue to believe that the rent-to-own market has significant potential for new store development and continues to present acquisition opportunities due to industry fragmentation. In fact, we opened 16 new store locations in the second quarter of 2002 and acquired an additional 38 store fronts."

Rent A Center opened at $50.05. At publishing time, RCII was up $1.87 per share (+3.84%) at $50.59.

update
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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