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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
APRIL 25, 2001
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RENT-A-CENTER, INC.
(Exact Name of Registrant as Specified in Charter)
DELAWARE 0-25370 48-1024367
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
5700 TENNYSON PARKWAY
THIRD FLOOR
PLANO, TEXAS 75024
(Address of Principal Executive Offices) (Zip Code)
(972) 801-1100
(Registrant's telephone
number, including area code)
NO CHANGE
(Former Name or Former Address, if Changed Since Last Report)
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ITEM 9. REGULATION FD DISCLOSURE
A copy of the Registrant's press release, dated April 25,
2001, announcing the Company's revenues and earnings for the
quarterly period ended March 31, 2001, is set forth below.
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For Immediate Release:
RENT-A-CENTER, INC. REPORTS
RECORD FIRST QUARTER 2001 RESULTS
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SAME STORE SALES INCREASE 8.8%
EARNINGS PER SHARE $0.03 ABOVE CONSENSUS ESTIMATES
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PLANO, TEXAS, APRIL 25, 2001 - Rent-A-Center, Inc. (the "Company") (Nasdaq/NNM:
RCII), announced today record revenues and net earnings for the quarter ended
March 31, 2001.
The Company, the nation's largest rent-to-own operator, had total revenues for
the quarter ended March 31, 2001 of $439.7 million, a $47.2 million increase
from $392.5 million for the same period in the prior year. This increase of
12.0% was largely a result of better than expected same store sales growth of
8.8%, as well as incremental revenues generated in new and acquired stores.
Net earnings for the quarter ended March 31, 2001 were $25.0 million, or $0.69
per diluted share, representing an increase of 19.7% over the net earnings of
$20.9 million, or $0.61 per diluted share, reported for the same period in the
prior year. The increase in net earnings and earnings per diluted share are
primarily attributable to the Company's increase in revenues, operational
improvements in existing stores and reduced interest expense resulting from a
reduction in outstanding debt. At March 31, 2001, outstanding debt totaled
$703.1 million, down approximately $100.8 million from the balance at March 31,
2000. For the quarter ended March 31, 2001, the Company generated $32.0 million
in operating cash flow and reduced debt outstanding by $37.9 million.
"We are pleased to announce that demand remained very strong throughout the
first quarter, which led to our outstanding operating results and illustrates
the resilience of our business in a weakening economy" commented J.E. Talley,
the Company's Chairman and Chief Executive Officer. Mr. Talley added, "We remain
optimistic about our future growth plans and operating results and look forward
to another record quarter for our Company."
During the first quarter of 2001, the Company opened 23 new locations and
acquired four additional stores in three separate transactions. Since the end of
the first quarter, the Company has opened four additional new stores and has
acquired three stores through two separate transactions. For the entire year
ending December 31, 2001, the Company intends to add over 10% to its store base
through new store expansion and opportunistic acquisitions.
Rent-A-Center, headquartered in Plano, Texas, currently operates 2,184
company-owned rent-to-own stores in 50 states, Washington D.C. and Puerto Rico.
The stores offer high-quality, durable goods such as home electronics,
appliances, computers, and furniture and accessories to consumers under flexible
rental purchase agreements that
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allow the customer to obtain ownership of the merchandise at the conclusion of
an agreed-upon rental period. ColorTyme, Inc., a wholly-owned subsidiary of the
Company, is a national franchisor of 359 rent-to-own stores, 347 of which
operate under the trade name of "ColorTyme," and the remaining 12 of which
operate under the "Rent-A-Center" name.
This press release contains forward-looking statements that involve risks and
uncertainties. Such forward looking statements generally can be identified by
the use of forward-looking terminology such as "may," "will," "expect,"
"intend," "estimate," "anticipate," or "believe," or the negative thereof or
variations thereon or similar terminology. Although the Company believes that
the expectations reflected in such forward looking statements will prove to be
correct, the Company can give no assurance that such expectations will prove to
have been correct. The actual future performance of the Company could differ
materially from such statements. Factors that could cause or contribute to such
differences include, but are not limited to, the risks detailed from time to
time in the Company's SEC reports, including its annual report Form 10-K for the
year ended December 31, 2000 and the Company's ability to find locations that
meet the Company's criteria for new store locations, and the Company's ability
to locate existing stores that the Company could acquire under acceptable terms.
There is no assurance that the Company will be able to find such locations or
existing stores, or that it would be able to open or acquire such stores. You
are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date of this press release. Except as requested by
law, the Company is not obligated to publicly release any revisions to these
forward-looking statements to reflect the events or circumstances after the date
of this report or to reflect the occurrence of unanticipated events.
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RENT-A-CENTER, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF EARNINGS HIGHLIGHTS
(In Thousands of Dollars, except per share data) THREE MONTHS ENDED MARCH 31,
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2001 2000
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UNAUDITED
Total Revenues $ 439,702 $ 392,526
Operating Profit 62,485 58,552
Net Earnings 24,998 20,889
Diluted Earnings Per Common Share 0.69 0.61
EBITDA $ 78,558 $ 73,630
DILUTED EARNINGS PER COMMON SHARE
BEFORE GOODWILL AMORTIZATION
(In Thousands of Dollars, except per share data) THREE MONTHS ENDED MARCH 31,
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2001 2000
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UNAUDITED
Net Earnings $ 24,998 $ 20,889
Goodwill Amortization Net of Tax Effects 6,160 6,034
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Adjusted Net Earnings $ 31,158 $ 26,923
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Diluted Weighted Average Shares Outstanding 36,375 34,236
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Diluted Earnings Per Common Share Before Goodwill
Amortization
$ 0.86 $ 0.79
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RENT-A-CENTER, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF EARNINGS
(In Thousands of Dollars, except per share data) THREE MONTHS ENDED MARCH 31,
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2001 2000
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UNAUDITED
Revenues
Store
Rentals and fees $ 393,123 $ 350,320
Merchandise sales 30,759 27,339
Other 1,330 492
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425,212 378,151
Franchise
Merchandise sales 13,027 12,891
Royalty income and fees 1,463 1,484
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Total revenues 439,702 392,526
Operating expenses
Direct store expenses
Depreciation of rental merchandise 80,812 71,728
Cost of merchandise sold 21,555 22,830
Salaries and other expenses 242,219 208,525
Franchise cost of merchandise sold 12,494 12,441
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357,080 315,524
General and administrative expenses 12,869 11,475
Amortization of intangibles 7,268 6,975
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Total operating expenses 377,217 333,974
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Operating profit 62,485 58,552
Interest expense 16,510 19,008
Interest income (361) (257)
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Earnings before income taxes 46,336 39,801
Income tax expense 21,338 18,912
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NET EARNINGS 24,998 20,889
Preferred dividends 2,630 2,554
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Net earnings allocable to common stockholders $ 22,368 $ 18,335
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Basic weighted average shares outstanding 24,959 24,311
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Basic earnings per common share $ 0.90 $ 0.75
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Diluted weighted average shares outstanding 36,375 34,236
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Diluted earnings per common share $ 0.69 $ 0.61
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
RENT-A-CENTER, INC.
DATE: May 22, 2001 BY: /s/ J. ERNEST TALLEY
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J. Ernest Talley
Chief Executive Officer
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