We are encouraged by these trends in our customer traffic, and we remain cautiously optimistic regarding 2010.
Mark E. Speese, Chairman and Chief Executive Officer, Rent-A-Center

Rent-A-Center, Inc. (NASDAQ:RCII), the nation's largest rent-to-own operator, today reported total revenues for the quarter ended September 30, 2009 decreased $37.5 million from the same period in 2008. The decrease in revenues was primarily the result of a 6.1% reduction in same store sales -  predominantly attributable to a decrease in the number of units per customer and the anticipated revenue attrition from approximately 365 stores that received customer agreements from stores closed in the 2007 restructuring plan.

Net earnings and net earnings per diluted share for the quarter ended September 30, 2009 were $36.8 million and $0.55, respectively, as compared to $29.4 million and $0.44, respectively, for the same period in the prior year.

"I am pleased with our results for the third quarter, where we met our revenue guidance and exceeded our net earnings per diluted share through our continued focus on managing our costs," commented Mark E. Speese, the Company's Chairman and Chief Executive Officer. "Both our customer count and our deliveries per store have outperformed the comparable period in 2008 for each month during the third quarter," Speese stated. "We are encouraged by these trends in our customer traffic, and we remain cautiously optimistic regarding 2010. Accordingly, our 2010 guidance includes flat to slightly increasing total revenue with net earnings per diluted share in the $2.30 to $2.50 range. In addition, our focus on improving our financial services operations in 2009 has resulted in positive results, and as such, we anticipate expanding this business with the opening of approximately 50 locations in 2010," Speese concluded.

Nine Months Ended September 30, 2009 Results

Total revenues for the nine months ended September 30, 2009 were $2.079 billion, a decrease of $105.0 million from total revenues of $2.184 billion for the same period in the prior year. This decrease in revenues was primarily the result of a 3.9% reduction in same store sales, predominantly attributable to a decrease in the number of units per customer, plus the impact of the 2007 restructuring plan.

Net earnings and net earnings per diluted share for the nine months ended September 30, 2009 were $124.2 million and $1.86, respectively, as compared to $103.5 million and $1.54, respectively, for the same period in the prior year. Net earnings and net earnings per diluted share for the nine months ended September 30, 2009 include $4.9 million, or approximately $0.04 per share, as a result of pre-tax litigation credits related to the Hilda Perez matter as discussed below. Net earnings and net earnings per diluted share for the nine months ended September 30, 2008 were reduced by $3.1 million, or approximately $0.03 per share, as a result of a pre-tax expense related to our 2007 restructuring plan as discussed below.

When excluding the items above, adjusted net earnings per diluted share for the nine months ended September 30, 2009 were $1.82, as compared to adjusted net earnings per diluted share for the nine months ended September 30, 2008 of $1.57, an increase of 15.9%.

Through the nine month period ended September 30, 2009, the Company generated cash flow from operations of approximately $300.0 million, while ending the quarter with approximately $39.9 million of cash on hand. The Company utilized its cash flow from operations to reduce its outstanding indebtedness by approximately $288.0 million in 2009, or approximately 30% from year end 2008. During the quarter ended September 30, 2009, the Company redeemed its outstanding balance of $75.4 million in aggregate principal amount of its 7½% Senior Subordinated Notes as well as repaid approximately $41.7 million of its senior debt.