Rent to Own Online
"All Rent to Own...All the Time"


| About RTO Online | RTO Tradeshow | Press
#1 Online Destination For the Rent to Own Industry
Trade portal for companies who rent to own furniture, electronics, appliances, custom wheels, jewelry and other home goods.
Rent to Own Online
Rent to Own Tradeshow
Who's Who in rent to own  
The Rent to Own industry's event photo album  
Video podcast interviews with Rent-to-Own industry professionals  
Audio podcast interviews with Rent-to-Own industry professionals  
Rent-to-Own Industry Federal Legislative Guide  
Rent to Own Industry Jobs and Resumes  
Search Rent to Own Online  
Subscribe to
RTO Magazine

E-mail Address :

Manage Subscriptions
RTO Magazine
United States Rent to Own Store Locator  
State Rent to Own Law  
Rent to Own Websites  
Rent to Own Industry Poll  
Editorials By Rent to Own Professionals  
Rent to Own Stocks  
Rent to Own Links  
Rent to Own Industry Events  
Rent to Own Online Archive  
Rent to Own Industry Training  
Advertise on the number one website for rent to own professionals  
Rent to Own Industry Blog  
Rent to Own Chat  
Rent to Own Industry Forum  
Rent to Own Industry Glossary  
National News  
Contact Rent to Own Online  

Site Statistics



Rent Way Q4 Fiscal Year Conference Call Summary
RTO Online
Email this page to a friend


Your email address Worthless Helpful I have tears of joy Better than War and Peace

Add your Comments



Rent Way
Rent a Center

Related articles
most recent first

Former Rent Way CEO Morgenstern to Head Third World Micro Lender
Date Set For Rent Way Shareholders To Vote On Rent A Center Merger
Rent Way Board Unanimously Recommended Merger With Rent-A-Center
Rent-A-Center Acquires Rent Way For $567 Million
Rent-Way Same Store Sales Up 4.1%; Webcast Today
Rent Way Webcast Scheduled
Reuters Reporting Rent Way For Sale; Rent Way Responds
Rent-Way Names John Lombardi Senior VP and CFO; Roger Zwingler Executive VP of Strategic Planning and Chief Marketing Officer
Rent-Way Reports Quarterly Revenues Up 5.2%; Same Store Sales Up 1.2%
Rent-Way Expands TomorrowNow Support Agreement
Rent-Way Webcast Scheduled
Rent-Way Reports Net Loss For Quarter; Same Store Sales Down 2.4%
Rent-Way Webcast Scheduled
Rent-Way Q4 Slightly Higher Same Store Sales; Projects Flat Same Store Sales For 06'; 44 New Stores in Fiscal Year
Outgoing Rent Way CFO William McDonnell to Join AMF as Chief Financial Officer
Rent-Way Senior VP and CFO McDonnell Resigns; John Lombardi Named Interim CFO
Rent Way Deploys 3am Labs' Remote Support System
Acquisition Twist; Rent Way Acquires 12 Stores From Rent-A-Center For $3.6 Million
Rent-Way Reports Slight Same Store Sales Increase; Warns On Q4 - Sees Tough 06'
Gregory L. Matheny Appointed Executive Vice President and Chief Operating Officer of Rent-Way
Rent-Way Offers Employee Assistance In Wake Of Katrina
Rent-Way Records Q3 Loss; Same Store Sales Up But Warns For Fourth Quarter
Rent-Way Webcast Scheduled
Chicago Man Wins RentWay National Sweepstakes
Rent-Way Makes Zack's ROE List
Rent-Way Schedules Second Quarter Earnings Release
Morgenstern Steps Down; Short To Head Rent Way
Service Manager Derrick Peterson Awarded RentWay's Highest Honor
RentWay Plans Career Day
Rent-Way Beats The Street; Same Store Sales Up 3.4%
Rent-Way Schedules Q1 Earnings Release
Rent Way Files 10K
Rent-Way Selects BellSouth for Long Distance
Rent Way Reports Same Store Sales Up 5.2%; Will Open 50 Stores In '05
Rent Way Signs Exclusive Deal With Levitz; Testing Lease Purchase Option In Levitz Locations
Rent-Way Schedules Fourth Quarter Conference Call
Rent Way Accelerates New Store Openings
Rent-Way Reports Record Quarterly Agreement Growth; Same Store Sales Increase 5.2 For Fiscal Year
Rent-Way Reports Same Store Sales Up 3.4%
Rent Way To Participate In Diversity Career Fair
Rent Way Stock Falls 24% In 10 Days
Rent-Way Schedules Conference Call
Rent-Way Reports Same Store Sales Up 6.9%; Operating Income Doubles
Rent Way Schedules Conference Call
Rent Way BOD Member John Higbee Joins World Health Alternatives Board
Rent-Way Reports Same Store Sales Up 6.6%; Operating Income Doubles
Rent Way Schedules Annual Stockholders Meeting
Rent Way Files Lawsuit; Seeks Identity Of Internet Message Board Poster
Rent-Way Schedules Q1 Conference Call
Final Sentence Handed Down In Rent Way Case
Former Rent Way Exec Sentenced
Rent Way Looks To Future
Rent Way Reports Net Loss; Same Store Revenue Up 2.5%, Operating Income Doubles
Rent-Way Schedules Fourth Quarter Earnings Release
Rent Way Stock Quietly Outperforming Peers
Rent-Way Reports 2.5% Same Store Growth For Quarter; Projects net Loss
Rent Way Holds Onto Big Gains
Rent Way Reports Net Income For Quarter; Same Store Sales Declined 1.9%
Morgenstern Speaks On Rent Way's Future
Former Rent Way Execs Face Up To 10 Years in Prison
SEC Details Conway Involvement
Rent-Way Announces Completion of Government Investigation
Conway, Marini, Underwood Plead Guilty
S&P Raises Rent Way's Credit Rating
Rent-Way Completes Refinancing;
Rent-Way Announces Refinance!
S&P Views Rent-Way Offering as Positive
Rent Way Publishes EBITDA For 1998 to Present
Rent-Way Announces New $215 Million Offering to Payoff Banks
Refinance at RentWay?
Rent-Way Schedules Second Quarter Earnings Release
Rent Way Coordinates "Support the Troops Rally" in West Virginia
Local Rent Way Supporting Citizen Soldiers
Rent Way Unveils New Website
A 'quantum leap' in RTO Websites
All the Marbles
Future of Rent Way hinges on refinance
Rent Way Settles Class Action for $25 million
Q1 Conference call summary
Q1 2003 Earnings Results
Rent Way Schedules Conference Call
Rent Way Employees Ponder the Future
Rent Way Registers Calm Waters Shares
Rent Way Responds to S&P Downgrade
S&P Cuts RWY Credit Rating
Rent Way Director, Ryan, buys 10,000 Shares
Rent Way files 10k
Rent Way Non Compete Agreements
Rent Way Conference Call Summary
Rent Way Earnings Release
Will It Be Enough?
Mark Speese Interview
Rent Way Sells 295 Stores to Rent a Center
Rent Way Rumblings
Rent Way Schedules Q4/ Year End Earnings Release and Conference Call
Calendar Year Stock Performance Review
Rent Way Stock Struggles To Avoid All Time Low
Rent Way Bucks Trend...Stock Up 23%
Rent Way Quarter "..In Line With Expectations"
Rent Way Stock Continues to Spiral
Rent-Way Hires Salomon Smith Barney
Rent Way Names Bill Short Senior VP Operations
Rent Way Downgraded to Neutral
Rent Way Q3 Net Loss $6 million...revises forecast


Rent Way held it's Q4, fiscal year ending conference call today at 4:30pm. As expected, the major topic of discussion was yesterdays announcement of the sale of 28% of Rent Ways locations to Rent a Center.

Rent Way CEO Bill Morgenstern described the sale of 295 stores to Rent a Center "Exciting news". He added "The stores we are selling account for about 28% of our store count, while they account for a little less than 25% of our total revenue". "The vast majority of the stores we sold need significant time and money to increase their earnings", he said.

Rent Way currently operates in 42 states. As a result of the sale, the company will exit 5 states completely. California, Oregon, Washington, Colorado, and South Dakota stores will all be sold. CEO Bill Morgenstern mentioned that Non-Compete agreements will be signed for markets exited. No details on the terms of the non-compete were given.

Bill Morgenstern

"Our choices were clear, de-lever the company by selling stock at depressed prices, or liquefy certain assets".

"This is a decision to take a bold step to solve our financial difficulties once and for all"

"It's not very often you see a true win-win in a business transaction...In this case, it is a win-win for both company's stakeholders"

Rent Way CFO Bill McDonnell stated that Rent Way would net between $65 and $75 million 0f the $101.5 million sale price. The remainder will be used to pay expenses related to the sale. Rent Way will be responsible for building and vehicle leases on stores that Rent a Center decides to close/merge. Rent Way's agreement with it's lenders does not allow for lower interest rates as a result of overall debt reduction. As a result, interest rates on remaining debt will remain around 15%.

Company officials are still hopeful that a re-finance can be accomplished. The sale of the "underperforming assets" is seen as a step in that direction.

Bill Morgenstern
"No one knows what tomorrow brings, but our ambitions are to have the re-finance in place by the end of next quarter"

If Rent Way is unable to re-finance existing debt by June 2003, lenders will receive a 15% equity stake in the company, causing further dilution of shares.

As a byproduct of the sale, a "rationalization of corporate overhead", read staffing cuts, will be possible. No specifics were given, but every position will be evaluated.

Rent Way considered selling it's pre-paid dial tone subsidiary, DPI Teleconnect to raise capital, but were unable to find a buyer at the asking price.

Bill Morgenstern

"We did look at it, candidly, to try and find a buyer, the price ranges we got back were unattractive to us"

After a difficult summer, Rent Way has seen some improvement in October/November, gaining 11,000 customers and 21,000 agreements during the period.

Listen to the archived audio of the conference call here

See earnings release and details here

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