07-03-02
RTO Online In a press release issued today, Rent Way
announced it will record a one time, $3 million charge for the most recent
quarter ended June 30. The charge is an 'upward adjustment' of the companies
insurance premiums which are reviewed and revised as needed every year.
William Morgenstern
Rent Way CEO
"Due to the nature of our policy, it has taken six months for our carrier to
determine the level of this adjustment. We are confident, based on the cost of
this year's insured incidents, that our current accruals are adequate and we do
not anticipate this type of adjustment next year"
It was also announced that the company has amended its credit
facility to account for the charge.
It is unclear what effect this will have on Rent Way's Q3
results as the 10Q will not be released for some time.
View the entire press release here
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