customers appear to be adapting to higher commodity prices and
we continue to see business returning to more normalized levels.
William Short, President, Rent-Way
Rent Way Q2
|Opened 1 new store.
|Sold 9 stores.
|Acquired the rental agreements of 6 stores which
were merged into existing Rent Way locations.
Rent-Way Inc. (RWY)
reported revenues of $135.4 million the quarter ended June 30,
2006 versus $128.3 million in the same quarter last year.
Revenues from Rent Way's core rental business (excludes dPi
Teleconnect unit) were $131.5 million versus $124.2 million in
the same quarter last year, an increase of 5.9%.
Same store rental business revenue increased 4.1% versus last
year's quarter. Operating income in the quarter was $12.1
million, compared to $12.3 million in the same period last year.
Net income was $2.7 million, compared to a $1.2 million net loss
in the third quarter last year.
"Our customers appear to be adapting to higher commodity prices
and we continue to see business returning to more normalized
levels," said William Short, Rent-Way's President. "Our
same-store revenue comparisons were solid in the quarter and
within the range we predicted."
During the quarter, Rent Way opened 1 new store, sold 9 stores,
and acquired the rental agreements of another 6 which were
merged into existing RentWay locations. This brings total new
store count to 8 this fiscal year.
The Company ended the quarter with $45.0 million outstanding on
its bank revolver. The Company reported EBITDA for the quarter
of $16.1 million versus $16.2 million in the same quarter last
year. EBITDA as defined by the Company is operating income plus
depreciation of property and equipment and amortization of
Rent Way's net cash used in operations for the quarter of $6.8
million versus $8.3 million in the same quarter last year.
Rent-Way will host a conference call in connection with the release of
financial results. The call will
take place at 4:30 PM (EDT) on Thursday, August 3, 2006.
A link to the live webcast will is available from
Rent-Way operates 784 stores in 34 states.
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