For the fourth quarter, revenue increased 7.0% to $18.9
million from $17.7 million for the comparable quarter last year.
Same store revenues increased 3.2%. Operating income (EBIT-earnings
before interest and taxes) was $1.5 million compared with $1.0
million a year ago, an increase of $0.5 million. Income before
income taxes for the quarter was $1.0 million compared with
$430,000 for the quarter ended December 31, 2001. Net income for
the quarter increased to $851,000 from $389,000 in the
comparable period last year. Diluted earnings per share rose to
$0.18 from $0.09 for the comparable quarter in 2001.
For the year ended December 31, 2002, revenue increased $4.6
million to $72.4 million from $67.8 million for the twelve
months ended December 31, 2001. For the twelve months, same
store revenues increased 5%. Operating income was $5.7 million,
a $2.4 million increase over the comparable period in 2001.
Income before income taxes was $3.7 million compared to $1.0
million in 2001. Net income increased $4.5 million from a loss
of $1.9 million in 2001 to net income of $2.6 million for the
year ended December 31, 2002. Diluted earnings per share were
$0.54 for the twelve months ended December 31, 2002 compared to
a diluted loss per share of $(0.45) for the twelve months ended
December 31, 2001.
President and CEO
"I am delighted to be reporting RTO's eighth consecutive quarter
of comparable pre-tax profit growth. We were rewarded by the
diligent work conducted by our marketing team, who introduced
more effective targeting techniques to attract new customers
during the fall season. This resulted in sequential growth of
7.0% in customer gain over the third quarter, a 10% increase in
ending agreements on rent, leading to our monthly rental revenue
portfolio increasing $383,000 which is 21% higher than the
comparable period in 2001."
"Consistent with our focus on growth, we opened 4 new
locations and purchased accounts from 2 locations in the fourth
quarter. We finished 2002 with 136 locations, an increase of 6
from 2001. Demand for our product remains strong as demonstrated
by 15 months of consecutive, comparable growth."
"These are exciting times at RTO Enterprises, and I am more
pleased than I was a year ago with our financial trajectory of
the business. In the last 2 years, our funded debt has been
reduced by 30% and our monthly rental revenue portfolio has
increased 16%. This, coupled with our easyhome brand transition
due for completion by June, gives us continued optimism in our
outlook for 2003."
Donald K. Johnson
Chairman of the Board
"Q4 results for 2002 continue the steady improvement in the
Company's operating results achieved by our new management team.
With the rebranding announced on January 24 of 2003, RTO is well
positioned to further improve profit performance before
commencing a store expansion program in 2004 and beyond."