"...we had the best fourth quarter in our
history in terms of growth of agreements"
William E. Morgenstern Chairman and CEO
(RWY) today reported unaudited, preliminary, fiscal 2004
full year and fourth quarter core rental business (which exclude the company's
dPi Teleconnect unit) revenues of approximately $478.6 million and $115.5
million, respectively. Same store core rental business revenues increased
approximately 5.2% in the 2004 fiscal year and 3.4% for the 2004 fiscal fourth
quarter versus the same quarter in fiscal 2003.
|"Typically, in the wake of natural
disasters, our customers struggle for a time to get their
lives and financial affairs in order. ... Working with our
customers through difficult times is what our people do
|William E. Morgenstern
"I am pleased to report that we had the best fourth quarter in our history in
terms of growth of agreements," stated William E. Morgenstern, Rent-Way's
Chairman and CEO. "The growth and our revenue performance are all the more
remarkable in that we achieved them in a quarter that saw four hurricanes impact
our 67 stores in Florida. As to the effect of these unfortunate hurricanes on
our business, based on our historical experience, we do not expect a substantial
impact. At this time we have estimated a loss for property damage at our Florida
stores between $250,000 and $500,000. In fact, only 8 of our stores were
directly in the path of the most serious damage. Typically, in the wake of
natural disasters, our customers struggle for a time to get their lives and
financial affairs in order. Rental payments are therefore delayed and it takes a
month or two to get our credit measurements back in line. Working with our
customers through difficult times is what our people do best." Morgenstern
continued, "The success of our summer promotions has created tremendous momentum
as we enter our new fiscal year. Our team delivered what we promised our
stakeholders in 2004; return to profitability and strong same store comp
"During the summer we introduced a new Dell/IBM computer rental program, which
was very successful. We also accelerated our new store opening schedule," said
William McDonnell, Rent-Way's Chief Financial Officer. "We now have signed
leases for about 14 new stores, 12 of which we expect to have open by Christmas.
Higher straight line depreciation expense associated with the success of
introducing Dell/IBM computers in our stores, expenses associated with
accelerating our new store opening program, and to a lesser extent, the impact
of the hurricanes on our Florida stores, will result in operating income in the
quarter being slightly lower than our previous guidance. However, our operating
income for the year should be well within the ranges we forecasted at the
beginning of our fiscal year." Mr. McDonnell continued, "Cash flows in the
quarter continued strong and we can report that debt under our revolving bank
credit agreement was reduced to zero during fourth quarter."
Rent-Way expects to release audited results for the fiscal 2004 fourth quarter
and full year in late November or early December.
Rent-Way operates 754 stores in 33 states.
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