Looking forward for the balance of the fiscal and calendar year, we expect to see same store revenues in the 3% - 5% range.
William Short, President

Rent-Way Inc. (RWY) reported financial results for the three and six months ended March 31, 2006.

For the second quarter, the Company reported revenues of $142.4 million versus $136.2 million in the same quarter last year. Revenues from the Company's core rental business (which excludes the Company's dPi Teleconnect unit) were $138.4 million versus $131.6 million in the same quarter last year, an increase of 5.2%. Same store rental business revenue increased 1.2% versus last year's quarter. Operating income in the quarter was $11.2 million, compared to $14.3 million in the same period last year. Net income was $2.1 million, compared to $6.3 million in the second quarter last year. Net income allocable to common shareholders was $1.6 million or $0.06 per diluted share versus net income of $5.8 million last year or $0.19 per diluted share. Net income for the quarter gives effect to a non-cash $0.1 million FAS 133 gain related to the conversion feature of the Company's preferred stock. The FAS 133 gain was $0.6 million in last year's quarter.

William Short, Rent-Way's President, commented, "We experienced strong growth in potential weekly rental revenue during the quarter, and as predicted our same-store revenue comparisons were positive in the quarter. Looking forward for the balance of the fiscal and calendar year, we expect to see same store revenues in the 3% - 5% range." Mr. Short continued, "During the quarter we opened 2 new stores, sold 2 stores, and acquired the rental agreements of another 2 which were merged into existing RentWay locations. This brings our total new store count to 8 this fiscal year, and 53 over the past 18 months. These stores continue to meet our expectations and our plan for the balance of the fiscal year is to continue to open new stores and seek out strategic acquisitions. We believe very strongly that continuing to invest in the growth of our business is the best way to maximize earnings and shareholder value."

Rent-Way Inc. will host a conference call today at 4:30 PM (EDT) on Wednesday, May 3, 2006. A link to the live webcast will is available from My RTO Portfolio.