Rent A Center held it's Q3 earnings conference call today at 10:45 am eastern time.

Mark Speese
CEO
"It was a year ago that I re-joined the company. At that time we laid out our action plans and goals for fiscal year 2002. I am pleased to report that, to date, we have met or exceeded every key measurement we established"..."and we've done that in an environment that has negatively effected most retailers"

• Paid down $180 million in debt (26% of all outstanding debt)
• Repurchased $60 million stock
• $48 million on new stores
• $80 million cash on hand

Mitch Fadel
President
"6.9% comp is pretty much unheard of these days, yet we were able to do it. Demonstrating our resistance to any recession effect"

Most interesting question from an analyst
The most interesting discussion came when a caller  asked whether Rent A Center would consider acquiring Rent Way. Answer...

Mark Speese
CEO
"If it presented itself at the right price, we would certainly entertain it"

Snippets
Almost a year ago, Rent A Center began an effort to raise rates. The strategy was to raise the rate while reducing term, keeping the total to acquire ownership unchanged. Since RAC has a return rate of 80% (20% keep rate), the increase had little effect on core customers, while raising rates on short term renters who carry a higher cost.

RAC's past due goal is 6.5%. Currently, they are averaging 5.9% nationally.

Will open 80 - 120 new stores (not counting acquisitions) next year.

Rent A Center has changed it's model in Wisconsin (one of 3 states with no RTO legislation) to a 'Financed Retail Transaction'. The marketing campaign is 'Get it now'. Mark Speese also announced a potential settlement with Wisconsin Attorney General Jim Doyle. The settlement may be finalized in as little as 2 weeks.

Rent A Center pays between 8 and 10 times monthly revenue for store acquisitions, and 6 to 8 times revenue for account only acquisitions

Company has realized $8 million in savings as a result of moving to a geographic pay scale (pay based on cost of living by region).

Company still holds out hope for a lame-duck-session passage of S2947 (HR1701) in the Senate.

Maintained customer count over the summer through 2 promotions. 'No payment till..." offered up to 19 days free rent. Scratch and win offered free week and prizes.

Units are staying in the system longer due to increased focus on
re-furbishment.

RAC's Lifetime Reinstatement Plan helps 'mend the relationship' with former customers.

When pre-rented merchandise is sold at the end of it's useful life, it is sold at a 20% - 25% profit margin.

Rent a Center does not depreciate idle inventory. The only exception is computers. If a computer is older than 21 months, it is depreciated while idle.