operations team is moving forward into fiscal 2006 fully
cognizant of the fact that we need to focus on top line
growth despite the difficult market conditions, caused by
record high gas prices, for our customers
Bill Short, President, Rent-Way
|Five Rent Way stores were totally destroyed by the
hurricanes and the operations of six other stores were
Rent-Way Inc. (RWY) today reported
fiscal 2005 full year and fourth quarter core rental business
revenues (which excludes the company's
dPi Teleconnect unit) of
approximately $499.3 million and $121.6 million, respectively.
This represents an approximate 4% increase over 2004 full year
rental business revenues and an approximate 5% increase over
rental business revenues in the 2004 fourth quarter. Same store
core rental business revenues increased approximately 2.1% in
the 2005 fiscal year and 1.4% in the 2005 fiscal fourth quarter
versus the same periods in fiscal 2004.
"For the ninth consecutive quarter our comparable same store
sales were positive, despite slower than expected delivery
activity during the second half of the year," stated Bill Short,
Rent-Way's President. "Our operations team is moving forward
into fiscal 2006 fully cognizant of the fact that we need to
focus on top line growth despite the difficult market
conditions, caused by record high gas prices, for our customers.
While I understand it will be challenging, I am confident our
team will work diligently to do what needs to be done,"
concluded Mr. Short.
At this time, Rent-Way estimates total losses for property
damage from Hurricanes Katrina and Rita at approximately $2.0
million. Five stores were totally destroyed by the hurricanes
and the operations of six other stores were substantially
affected. The damage loss figure does not factor in the effect
of insurance recoveries, which the company expects to be in the
range of $1.5-$2.0 million, over the next several months.
"As a result of ending the quarter with fewer than expected
rental contracts and the expenses related to the two hurricanes,
we expect that operating income for the quarter will be below
previous forecasts," said William McDonnell, Rent-Way's Chief
Financial Officer. "With respect to store openings, we opened 12
stores in the fourth quarter and 44 stores in the 2005 fiscal
year. As our new stores ramp up we expect to benefit from their
performance throughout fiscal 2006 and beyond," concluded Mr.
Rent-Way expects to release audited results for the fiscal
2005 fourth quarter and full year in late November or early
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