05-09-02
RTO Online
William Morgenstern: CEO
"The RentWay team has successfully navigated through very difficult waters
over the past 18 months. Our organization's dedication and commitment to
fix
our problems has led to strong sequential improvement in operating
profitability. Lower cost of sales, tight expense control and
high-quality,
higher margin merchandise all contributed to a big improvement in operating
margins and EBITDA. Dpi Teleconnect continued its track record of solid
growth,"
William McDonnell: CFO
Driving operating margins to the 12-14%range by increasing revenues and
improving gross margins, as well as working towards refinancing the company, are
our top priorities for the balance of this calendar year."
In Erie Pennsylvania Church Bells rang and sirens wailed. Women
hugged their kids and old men wept as Rent Way CEO Bill Morgenstern uttered
those elusive words....
"Net Income"!
"Net" and "Income" haven't been used on the same page, much less
the same sentence in what must seem like a lifetime to the embattled crew of the
nations second largest Rent to Own company.
The mood was exuberant as Mr. Morgenstern quoted Donald Rumsfeld
"Amidst all the clutter, beyond all
the obstacles, aside from all the static, are the goals set. Put your head down,
do the best job possible, let the flak pass, and work towards those goals."
I would suggest opening some Champaign...but everything except
water has been cut from the budget in a massive, year long cost cutting plan
that is now paying big dividends.
Go ahead guys, pop the cork...just share the glass:)
The summary is below. A detailed breakdown of all facts
discussed on the call will be available here Friday.
Full text of this press release available at:
http://www.prnewswire.com/cgi-bin/micro_stories.pl?ACCT=no&TICK=RWY&STORY=/www/story/05-09-2002/0001724939&EDATE
The numbers...(000s omitted except share and per
share data) Full quarterly report will be issued Monday, May 13. Check
back here for the link to the online report.
| |
Quarter Ended |
Six Months Ended |
| |
3/31/2002 |
3/31/2001 |
3/31/2002 |
3/31/2001 |
|
Revenues
|
$164,002
|
$174,968
|
$318,106
|
$333,705
|
|
Operating income(loss)
|
$13,636
|
$11,630
|
$16,141
|
$956
|
|
Net income(loss)
|
$1,597
|
$(4,025)
|
$(21,098)
|
$(29,776)
|
|
Earnings(loss) per share Basic
|
$0.07
|
$(0.16)
|
$(0.86)
|
$(1.22)
|
|
Earnings(loss) per share Diluted
|
$0.06
|
$(0.16)
|
$(0.86)
|
$(1.22)
|
|
Rentalmerchandise
|
$234,166
|
$288,353
|
$234,166
|
$288,353
|
|
Totalassets
|
$625,427
|
$731,397
|
$625,427
|
$731,397
|
|
Accounts payable
|
$28,424
|
$37,912
|
$28,424
|
$37,912
|
|
Debt
|
$317,733
|
$361,144
|
$317,733
|
$361,144
|
|
Shareholders equity
|
$184,942
|
$240,354
|
$184,942
|
$240,354
|
|
Shares outstanding
|
24,535,379
|
24,509,979
|
24,535,379
|
24,509,979
|
|
Stores
|
1,068
|
1,138
|
1,068
|
1,138
|
end
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