results for the full fiscal year will be in line with our
guidance, however we expect revenue and operating income
will be slightly below guidance for the fourth quarter
William McDonnell, Rent-Way's Vice
President and CFO
Rent-Way Inc. (RWY)
today reported reported revenues from the Company's core rental
business (which excludes the Company's dPi Teleconnect unit) for
the three months ended June 30, 2005 were $124.2 million versus
$118.5 million in the same quarter last year, an increase of
4.8%. Same store rental business revenues increased 2.6% versus
last year's quarter.
As a result of the increase in the Company's stock price in
the quarter, the Company recorded a $5.0 million FAS 133 charge
related to the conversion feature of the Company's preferred
stock versus income of $0.2 million in the same quarter last
year. Giving effect to this charge results in the Company
incurring a net loss of $1.2 million in the quarter, compared to
net income of $4.9 million in the third quarter last year.
"The fundamentals of our business are sound and our plan to
invest in growing the Rent-Way brand by 40 - 50 stores per year
for the next several years is working," stated Bill Short,
Rent-Way's President. "We opened 9 new stores in the quarter and
we expect to open 10 more by the end of September, which would
mean 42 new stores opened in fiscal 2005. We're pleased with the
top line revenue performance of these new stores. Our cash flow
is strong, our team is solid and I remain very optimistic about
2006 and beyond," concluded Mr. Short.
William McDonnell, Rent-Way's Vice President and CFO, stated,
"For the quarter, our core stores revenue and operating income,
were $121.4 million and $13.2 million, respectively, and our
core stores with new stores revenue and operating income, were
$124.2 million and $10.6 million, respectively. Higher payoffs
and a slight fall off in deliveries during the quarter reduced
our agreements on rent more than we had anticipated.
Nonetheless, we met our guidance for core store revenue and
operating income. Looking forward, our results for the full
fiscal year will be in line with our guidance, however we expect
revenue and operating income will be slightly below guidance for
the fourth quarter," concluded Mr. McDonnell.
Rent-Way operates 786 stores in 34 states.
RTO Online is the official channel for Rent-to-Own Industry News and the
only independent source of news for the rent-to-own, rental-purchase,
lease-purchase trade. RTO Online (Rent to Own Online) represents the choice
of the entire RTO Industry for trusted information, as it happens.
Tell us what you think
Rate the article at the top of this page