Rent Way now operates 759 stores in 33 states.
Rent-Way reduced its debt to $285 million as of December 31, 2002 from $339
million on December 31, 2001
Rent Way reported a net loss of ($5.4) million, or $(0.21) per share, during the
quarter, compared to a net loss of ($64.2) million, or ($2.62) per share, in the
year ago quarter
Revenue decreased $2.3 million mainly due to a 1.5% decline in same-store sales
First quarter operating income more than doubled to $5.9 million from $2.4
million last year
Rent-Way released financial
results for its fiscal first quarter, ended December 31, 2002.
The company completed the sale of 295 stores on February 10,
2003, and, in accordance with SFAS 144, these stores have been
accounted for as discontinued operations. All current and
historical results reflected in the following results have been
The company reported consolidated revenues of $146.5 million
for its first fiscal quarter, versus $148.8 million in the same
quarter of the last fiscal year. The decrease in revenue was
mainly due to a 1.5% decline in same-store sales and a reduction
in stores year over year.
Consolidated operating income for the quarter was $5.9
million compared to $2.4 million in the same fiscal period last
year. First quarter EBITDA increased 21% percent to $12.1
million from $10 million in the year-earlier fiscal quarter. For
Rent-Way, EBITDA represents operating income plus depreciation
of property and equipment plus amortization of intangibles.
The Company reported a net loss of ($5.4) million, or $(0.21)
per share, during the quarter, compared to a net loss of ($64.2)
million, or ($2.62) per share, in the year ago quarter. The
significant reduction in net loss can be attributed to $41.5
million in charges related to a change in accounting principle
SFAS 142 incurred in the previous quarter and improved
operational efficiencies and expense control.
William E. Morgenstern
"Our first quarter operational and financial results demonstrate
the progress we are making in returning Rent-Way to
profitability. Our team responded to a weak sales environment
last summer by launching an aggressive marketing campaign in
October intended to increase awareness of the Rent-Way brand in
our markets and drive traffic to our stores. The net result of
this marketing effort was significant growth in rental
agreements throughout the period."
Rent-Way reduced its debt to $285 million as of December 31,
2002 from $339 million on December 31, 2001. This level
represents a year-over-year decline of approximately $54
William A. McDonnell
"We made great strides in improving the overall health of our
balance sheet and income statement throughout last year and
those improvements continued in the first quarter of fiscal
2003. As reported yesterday, we completed the sale of 295 stores
to Rent-A-Center, Inc. It is our intention to refinance the
company's existing debt with a credit facility that will provide
us with the capital we need to execute our long-range growth
plans at a lower over all cost. The completion of this sale is
an important first step in that direction."
"We have already begun to rationalize our overhead in the field
and in the corporate office and expect to give revenue,
operating income and EBITDA guidance by the end of this current
William E. Morgenstern
"With a strong first quarter behind us, we are
anxious to continue to build on our success. We move forward
today with 759 stores, our best of the best, operating in 33
states in markets with plenty of room for growth. We are
confident that the strategic initiatives we have implemented to
streamline our operations will help to produce improved
financial results throughout the year. Lastly, I would like to
publicly thank the Rent-Way family for the extraordinary effort,
dedication and results they demonstrated this past quarter."
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