Rent Way filed its Q2 Quarterly report today for the period ending March 31. The
entire filing can be viewed
here. Below
is a summary of key points from the 10Q.
| Key Points |
Attributable to... |
| Total Revenue decrease 6.3% |
closing or selling of 69 under-performing stores since March
31, 2001, and a 4.2% decrease in same store revenues |
| Same store sales revenue increased by 2.2% |
customers of Gateway computers exercising the early purchase
option |
| Same store rental revenues decreased 3.7% |
eliminating low-end, low-margin merchandise for rent |
| Same store fee revenues decreased 11.2% |
reductions in the Company's collection of Liability Damage
Waiver and Processing Fees |
| Depreciation expense related to rental merchandise decreased
to 29.3% from 30% |
Company took steps to increase gross profit margins on
rental contracts |
Company completed the step one transitional goodwill
impairment test.
Company will complete step two of the impairment test and record the
determined write down no later than September 30, 2002 |
Company believes the impairment write down could be up to
$50 million.
|
Salaries and wages decreased by $1.9 million
(Salaries and wages increased to 22.9% as a percentage of total revenues
from 22.5%.) |
primarily due to the closing or selling of 69
under-performing stores since March 31, 2001 |
| Advertising expense increased from $1.8 million to $5.4
million |
increased usage of network radio spots and lower
co-operative advertising rebates received from the Company's vendors. |
| Other operating expense decreased by $4.9 million |
lower rental merchandise losses, payroll taxes, service
costs, travel and entertainment costs, accounting fees, legal fees, and
consulting fees |
| Interest expense increased from 6.4% to 7.8% as a percentage
of total revenues |
Company amended its credit facility with a syndicate of
banks on October 5, 2001 |
| Company generated net income of $1.6 million in
the period as a result of the factors described above compared to a net loss
of $4.0 million in the same period last year. |
