result of those difficult conditions, we began the fiscal
year with fewer agreements on rent, which resulted in our
first quarter of negative same store revenues in more than
William Short, President, Rent-Way
|Rent-Way opened 5 new stores during the quarter and
acquired the rental agreements of another fourteen,
which were merged into existing locations.
Rent-Way will host a conference call today at 4:30 PM (EST).
A link to the live webcast will is available from
Rent-Way Inc. (RWY) today reported financial results for
its fiscal 2006 first quarter ended December 31, 2005.
For the quarter, the company reported revenues
from the company's core rental business (which excludes the
company's dPi Teleconnect unit) were $124.0 million versus
$121.9 million in the same quarter last year, an increase of
1.7%. Same store rental business revenues decreased 2.4% versus
last year's quarter. Operating income in the quarter was $7.4
million, down from $11.2 million in the same period last year.
Net income was $0.6 million versus net income of $1.0 million in
the first quarter last year. Net income allocable to common
stockholders was $0.03 million compared with $0.5 million in the
2005 first quarter. Net income was positively impacted by a $1.7
million adjustment in the 2006 quarter and negatively impacted
by a $2.2 million adjustment in the 2005 quarter related to the
conversion feature of the company's preferred stock. The
positive adjustment in the 2006 quarter is reversed in the
calculation of net income per diluted share, resulting in a net
loss per share of $(0.04) compared with net income per diluted
share of $0.02 in last year's quarter.
"We experienced strong growth in potential weekly rental revenue
in the fiscal 2006 first quarter, which we believe signals a
recovery from the difficult business conditions we faced last
summer and early fall," stated William Short, Rent-Way's
President. "As a result of those difficult conditions, we began
the fiscal year with fewer agreements on rent, which resulted in
our first quarter of negative same store revenues in more than
two years. Our team has worked hard to regain the momentum we
lost and we believe our strong performance in the first quarter
bodes well for our business the rest of the year. We are
forecasting 2006 full year rental business revenues in the range
of $515 - $525 million, operating income in the range of $44 -
$48 million, and EBITDA in the range of $58 - $62 million. We
expect our same store revenues to turn positive in the second
quarter, and remain positive for the balance of the fiscal
year," concluded Mr. Short.
During the quarter the Company opened five new stores, and
acquired the rental agreements of another fourteen, which were
merged into existing RentWay locations.
Rent-Way operates 791 stores in 34 states.
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