Rent-A-Center Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2011; Provides Update Earnings Guidance of 2012; Expects to Open Stores in Different Locations
January 31, 2012 at 03:05 am IST
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Rent-A-Center Inc. announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2011. For the quarter, the company reported total revenue of $737,482,000 against $677,090,000 for the same period a year ago. Operating profit was $81,790,000 against $62,842,000 for the same period a year ago. Earnings before income taxes were $72,885,000 against $51,443,000 for the same period a year ago. Net earnings were $49,295,000 or $0.83 diluted per share against $31,854,000 or $0.49 diluted per share for the same period a year ago. This 8.9% growth in total revenues was primarily due to an increase in revenue driven by the RAC Acceptance business, partially offset by a reduction in revenue due to the discontinuation of the financial services business. Net earnings and net earnings per diluted share were reduced by $1.4 million, and approximately $0.02, respectively, due to a pre-tax restructuring charge in connection with the acquisition of 58 rent-to-own stores. On non-GAAP basis, adjusted EBITDA was $101,914,000 against $98,173,000 for the same period a year ago. Operating profit was $83,214,000 against $81,781,000 for the same period a year ago. Earnings before income taxes were $74,309,000 against $73,482,000 for the same period a year ago.
For the year, the company reported total revenue of $2,882,184,000 against $2,731,632,000 for the same period a year ago. Operating profit was $293,157,000 against $303,769,000 for the same period a year ago. Earnings before income taxes was $256,550,000 against $274,757,000 for the same period a year ago. Net earnings were $164,637,000 or $2.66 diluted per share against $171,642,000 or $2.60 diluted per share for the same period a year ago. This 5.5% growth in total revenues was primarily due to an increase in revenue driven by the RAC Acceptance business, partially offset by a reduction in revenue due to the discontinuation of the financial services business. Cash flow from operations of approximately $286.6 million. On non-GAAP basis, adjusted EBITDA was $387,109,000 against $317,220,000 for the same period a year ago. Operating profit was $317,220,000 against $322,708,000 for the same period a year ago. Earnings before income taxes were $280,613,000 against $296,796,000 for the same period a year ago.
The company provides update the 2012 earnings guidance by 7% to 10% total revenue growth and 2.5% to 4.5% same store sales growth. Diluted earnings per share in the range of $3.00 to $3.20, including approximately $0.20 per share dilution related to its international growth initiatives. Capital expenditures of approximately $105 million.
The company expects to open approximately 50 domestic rent-to-own store locations, it expects to open approximately 200 domestic RAC Acceptance kiosks, it expects to open approximately 60 rent-to-own store locations in Mexico and it expects to open approximately 10 rent-to-own store locations in Canada.
Upbound Group, Inc. is a lease-to-own provider with operations in the United States, Puerto Rico, and Mexico. The Company operates through four segments: Acima, Rent-A-Center, Mexico, and Franchising. Acima segment generally offers lease-to-own transactions to consumers who do not qualify for traditional financing. Rent-A-Center Business segment consists of the Company-owned lease-to-own stores in the United States and Puerto Rico. The segment operates 1,839 company owned stores in the United States and Puerto Rico, including 52 retail installment sales stores under the names Get It Now and Home Choice. The segment operates approximately 131 stores in Mexico. The stores in its Franchising segment use its Rent-A-Center, ColorTyme or RimTyme trade names, service marks, trademarks, and logos. The segment franchises approximately 440 stores in 30 states operating under the Rent-A-Center (392 stores), ColorTyme (18 stores) and RimTyme (37 stores) trade names.
Rent-A-Center Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2011; Provides Update Earnings Guidance of 2012; Expects to Open Stores in Different Locations