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 In fiscal
year 2009, 26% of Bestway's rental and fee revenue came from
electronics, up from 24% in fiscal 2008.
Rental and fee income for Bestway, one of the nation's largest
rent-to-own operators, increased 14% in the quarter ending
October 31, 2009 compared to the
same period last year. Net income for the quarter rose to
$448,530 from $16,256 in 2008.
CEO David Kraemer left his executive vice president post at
Rent-A-Center (NASDAQ:RCII) in 2002 to head Bestway (see
story).
Watch interviews with Bestway executives:
President and CEO David Kraemer;
Vice
President Benny Cheek;
Vice
President Kris Swift.
Bestway purchased 38% more merchandise during the quarter
compared to 2008. Salaries and wages increased 12% for the
period. Advertising expense rose 6%. Bestway operates
approximately 78 locations.
In fiscal year 2009, 26% of Bestway's rental and fee revenue
came from electronics, up from 24% in fiscal 2008. Revenue from
furniture and appliance rentals decreased 1% each. Computer
rentals as a percentage of revenue were flat at 8%.
Breakdown of Bestway Rent to Own Revenue by rental
merchandise category:
| Category |
2008 |
2009 |
change |
| Furniture |
35% |
34% |
-1 |
| Appliances |
17% |
16% |
-1 |
| Electronics |
24% |
26% |
+2 |
| Computers |
8% |
8% |
0 |
| *Fees and service charges |
16% |
16% |
0 |
*Includes reinstatement fees, preferred
customer membership fees and liability waiver fees.
Bestway rental agreement terms range from 12 to 30 months
with a majority specifying 24 months. Rental merchandise written off as damaged, inoperable,
obsolete, or not returned by the customer after becoming
delinquent on payments, increased to $2,507,662 for fiscal year
2009 versus $2,211,264 in 2008.
On April 17, 2009, Bestway acquired four locations from FAN
(Furniture and Appliances Now) for $1.5 million. Three of the
acquired stores (Conway and Little Rock, Arkansas) remained
open, the fourth (Russellville, Arkansas) was merged into Bestway's existing store.
FAN, owned by Geron Vail, operates 16 stores in Arkansas and
Oklahoma. Vail became the sole owner of FAN in 2005 after buying
out long-time partner Fred Pearson (see
story).
On June 18, 2009, Bestway sold its El Dorado, Arkansas store to
Aaron Rents, Inc. for $304,000 - a loss of $91,000.
Bestway, founded in 1987, operates
stores in Alabama, Arkansas, Georgia,
Mississippi, North Carolina, South Carolina, Tennessee and
Texas.
After a Reverse/Forward Stock Split in 2005 Bestway had
fewer than 300 shareholders, allowing the Company
to terminate registration of its common stock with the SEC. Once
one of five publicly held rent-to-own companies in North
America, Bestway first announced plans to go private in November 2004 (see
story).
Current Board of Directors:
R. Brooks Reed (Chairman)
David A. Kraemer
Jack E. Meyer
James A. O'Donnell
Bernard J. Hinterlong
Officers:
David A. Kraemer, President and Chief Executive Officer
Beth A. Durrett, Chief Financial Officer and Secretary
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