RTO Enterprises announced the results for its third quarter ending September 30, 2002. 

Revenue increased 7.0% to $17.7 million from $16.6 million for the comparable quarter last year. Same store revenues increased 5.0%. Operating income (EBIT-earnings before interest and taxes) was $1.383 million compared with $918,000 a year ago, an increase of $465,000.  Income before income taxes for the quarter was $869,000 compared with $336,000 for the quarter ended September 30, 2001. Net income for the quarter increased to $557,000 from $164,000 in the comparable period last year. Diluted earnings per share rose to $0.11 from $0.04 for the
comparable quarter in 2001.

For the nine months ended September 30, 2002, revenue increased
$3.5 million to $53.5 million from $50.0 million for the nine months ended September 30, 2001. For the nine months, same store revenues increased 5.3%. Operating income was $4.2 million, a $1.8 million increase over the comparable period in 2001. Income before income taxes was $2.7 million compared to $586,000 in 2001. Net income increased $4.0 million from a loss of $2.2 million in 2001 to net income of $1.8 million for the nine months ended September 30, 2002. Diluted earnings per share were $0.36 for the nine months ended September 30, 2002 compared to a diluted loss per share of $(0.55) for the nine months ended September 30, 2001.

David Ingram
President and CEO
"This was a very solid third quarter that continued to drive
revenue, giving us 12 consecutive months of comparable revenue growth and 7 consecutive quarters of improved income before income taxes. We are now starting to see higher productivity from our rental assets with idle inventory running at 19.3% compared with 23.6% of total rental units a year ago. The substantial increase in cash flow from operating activities allowed for a senior debt reduction of $2.4 million. For the nine months our revenue has grown 7% and the controls on expenses have reduced the cost base from 61.0% to 58.9% of revenues, translating into much-improved net income."

Mr. Ingram added, "Our investment in store development continued
in the third quarter with 1 new store opening and 4 locations under construction. 5 stores were remodeled and 2 stores were negotiated for relocation in the fourth quarter."

Concluding, Mr. Ingram stated "While our third quarter is seasonally our weakest, we have started the final quarter with a strong wind in our sails. The Christmas programs that performed so well in 2001 are being repeated, and our senior team has the benefit of working together for our second year-end."

Donald K. Johnson
Chairman of the Board
"The 3rd quarter results provide further confirmation that the new management team has restored the Company to consistent and growing profitability." 

Mr. McCarvill resigned as a director of RTO on November 5, 2002. 
Mr. Johnson thanked Mr. McCarvill recognizing the valuable contribution he has made to RTO over a number of years including during the period in which RTO underwent a significant restructuring.