Rent-A-Center posts positive consolidated
same store sales of 3.7 percent, strong earnings and higher cash
flow from operations
Rent-A-Center, Inc. (the "Company") (NASDAQ/NGS: RCII) today
announced results for the quarter ended June 30, 2018.
"We are extremely pleased with both the top and bottom line
performances for the second quarter, across all operating segments.
Positive consolidated same store sales of 3.7 percent improved
sequentially in each month within the quarter and across all
operating segments. This was driven by sequential customer growth
in the Core, and strong demand in Acceptance NOW primarily due to
the value proposition enhancements. In addition, the Company's cost
savings initiatives continue to outperform our internal goals,
further strengthening the EBITDA performance," stated Mitch Fadel,
Chief Executive Officer of Rent-A-Center.
Mr. Fadel continued, "Finally, the announced transaction with
Vintage Capital Management, which reflects a sizable premium, was
made possible by the significant progress made to materially
improve performance."
Acquisition Update
On June 17, 2018, Rent-A-Center entered into a merger agreement
(the "Vintage Merger Agreement") with Vintage Rodeo Parent, LLC
("Vintage"), an affiliate of Vintage Capital Management, LLC,
pursuant to which Vintage will, when the proposed merger is
completed, acquire all of the outstanding shares of Rent-A-Center
common stock for $15.00 per share in cash (collectively, the
"Vintage Merger"). The Vintage Merger, which is not subject to a
financing condition, is expected to close by the end of 2018,
subject to customary closing conditions, including the receipt of
stockholder and regulatory approvals. Upon completion of the
Vintage Merger, Rent-A-Center will become a wholly owned subsidiary
of Vintage and Rent-A-Center's shares of common stock will be
delisted from NASDAQ and deregistered.
Strategic Plan
The Company's strategic plan focuses on several improvement
areas including a cost savings plan, a more targeted value
proposition and a robust franchising program. The Company continues
to make significant progress to strengthen its financial profile
and improve results. The cost savings initiatives are significantly
ahead of the original schedule and are expected to generate over
$100 million in annual run-rate savings, with approximately $70
million expected to be realized in 2018. During the second quarter,
the Company implemented substantially all the remaining cost saving
initiatives as previously outlined.
Consolidated Overview
Explanations of performance are excluding special items and
compared to the second quarter of last year unless otherwise
noted.
On a consolidated basis, total revenues of $655.7 million
declined by 3.2 percent primarily due to closures of certain Core
U.S. and Acceptance NOW locations, partially offset by a
consolidated same store sales increase of 3.7 percent. Net profit
and diluted profit per share, on a GAAP basis, were $13.8 million
and $0.25 compared to net loss and diluted loss per share of $8.9
million and $0.17 in the second quarter of last year.
Special items of $16.5 million include charges primarily driven
by the cost savings initiatives and the strategic alternatives
review process that our Board began last October.
Excluding special items, the Company’s diluted profit per share
was $0.47 and the Company generated $61.1 million in adjusted
EBITDA in the second quarter compared to a loss per diluted share
of $0.01 and adjusted EBITDA of $28.9 million in the second quarter
of last year. Adjusted EBITDA as a percent of revenue increased 500
basis points versus the second quarter of last year.
For the six months ended June 30, 2018, the Company generated
$142.9 million of cash from operations, ending the second quarter
with $116.8 million of cash and cash equivalents, and reduced its
outstanding debt balance by $98.2 million. Subsequent to quarter
end, the term loan was repaid in full as of July 25, 2018.
Segment Operating
Performance
CORE U.S. second quarter revenues of $455.7 million decreased
0.3 percent due to the rationalization of the Core U.S. store base
offset by a same store sales increase of 3.5 percent. Gross profit
as a percent of total revenue versus prior year increased 180 basis
points primarily due to the intercompany book value adjustment on
returned Acceptance NOW products and the value proposition
enhancements. Labor and other store expenses decreased by $5.8
million and $6.8 million, respectively, driven by lower store count
and non-recurring insurance and vehicle sale benefits of
approximately $8.0 million. Adjusted EBITDA was $61.2 million and
increased 470 basis points versus prior year.
ACCEPTANCE NOW second quarter revenues of $179.0 million
decreased 12.0 percent primarily due to closures of the Company's
Conn’s and HHGregg locations partially offset by a same store sales
increase of 3.7 percent. Gross profit as a percent of total revenue
versus prior year decreased 300 basis points primarily due to the
intercompany book value adjustment on returned Acceptance NOW
products and the value proposition enhancements. Labor, as a
percent of store revenue, improved 290 basis points versus the
prior year driven by the closure of collection centers. Other store
expenses, as a percent of store revenue, improved 470 basis points
versus prior year driven by lower skip/stolen losses which
decreased 170 basis points. Adjusted EBITDA was $29.7 million and
increased 400 basis points versus prior year.
MEXICO second quarter revenues increased 6.7 percent on a
constant currency basis. Gross profit as a percent of total revenue
versus prior year decreased 30 basis points driven by lower rental
sales gross margin and merchandise sales gross margin. Other store
expense improved 540 basis points versus prior year driven by lower
skip/stolen losses. Adjusted EBITDA was $1.1 million and increased
380 basis points versus prior year.
FRANCHISING second quarter revenues of $8.7 million increased
primarily due to a recent accounting standard change for franchise
advertising fees and an increase in merchandise sales driven by
higher store count. Adjusted EBITDA was $2.0 million and increased
90 basis points versus prior year.
CORPORATE second quarter operating expenses decreased $5.1
million compared to the prior year primarily due to the realization
of cost savings. Excluding the impact of higher expected incentive
compensation, operating expenses decreased $7.1 million compared to
prior year.
SAME STORE SALES (Unaudited)
Table 1
Period Core U.S.
Acceptance Now Mexico Total
Three Months Ended June 30, 2018 (1) 3.5 % 3.7 % 7.1 % 3.7 % Three
Months Ended March 31, 2018 (1) 0.3 % 3.3 % 0.7 % 0.8 % Three
Months Ended June 30, 2017 (10.2 )% 6.7 % (6.9 )% (7.4 )%
Note : Same store sale methodology - Same store sales generally
represents revenue earned in stores that were operated by us for 13
months or more and are reported on a constant currency basis. The
Company excludes from the same store sales base any store that
receives a certain level of customer accounts from closed stores or
acquisitions. The receiving store will be eligible for inclusion in
the same store sales base in the 24th full month following account
transfer.
(1) Given the severity of the 2017 hurricanes, the Company
instituted a change to the same store sales store selection
starting in the month of September 2017, excluding geographically
impacted regions for 18 months.
2018 Selected Guidance
The Company is not providing guidance due to the pending Vintage
Merger.
Non-GAAP Reconciliation
To supplement the Company's financial results presented on a
GAAP basis, Rent-A-Center uses the non-GAAP measures ("special
items”) indicated in Table 2 below, which primarily excludes
financial impacts in the second quarter of 2018 related to cost
savings initiatives, including reductions in overhead and supply
chain, incremental legal and advisory fees associated with our
previously announced strategic alternatives review process, store
closures, and a favorable contract termination settlement. Gains or
charges related to store closures will generally recur with the
occurrence of these events in the future. The presentation of these
financial measures is not in accordance with, or an alternative
for, accounting principles generally accepted in the United States
and should be read in conjunction with the Company's consolidated
financial statements prepared in accordance with GAAP.
Rent-A-Center management believes that excluding special items from
the GAAP financial results provides investors a clearer perspective
of the Company's ongoing operating performance and a more relevant
comparison to prior period results. This press release also refers
to the non-GAAP measure adjusted EBITDA (earnings before interest,
taxes, depreciation and amortization). Reconciliation to the most
comparable GAAP measures are provided in Table 3, below. The
Company believes that presentation of adjusted EBITDA is useful to
investors, as among other things, this information impacts certain
financial covenants under the Company's senior credit facilities
and the indentures governing its 6.625% senior unsecured notes due
November 2020 and its 4.75% senior unsecured notes due May 2021.
While management believes these non-GAAP financial measures are
useful in evaluating the Company, this information should be
considered as supplemental in nature and not as a substitute for or
superior to the related financial information prepared in
accordance with GAAP. Further, these non-GAAP financial measures
may differ from similar measures presented by other companies.
Reconciliation of net earnings (loss) to net earnings (loss)
excluding special items:
Table 2
Three Months Ended June 30,
2018 2017 (in thousands, except per share
data)
Amount Per Share Amount
Per Share Net earnings (loss) $ 13,753 $ 0.25 $ (8,893 ) $
(0.17 ) Special items, net of taxes: Other charges (1) 10,830 0.20
7,105 0.14 Debt refinancing charges — — 1,239 0.02 Discrete income
tax items 972 0.02 (47 ) — Net
earnings (loss) excluding special items $ 25,555 $ 0.47 $ (596 ) $
(0.01 )
(1) Other charges for the three months ended June 30, 2018
primarily includes financial impacts, net of tax, related to cost
savings initiatives, including reductions in overhead and supply
chain, incremental legal and advisory fees, store closures, and a
favorable contract termination settlement. Other charges for the
three months ended June 30, 2017 primarily includes closure of
Acceptance Now locations, and incremental legal and advisory fees.
Charges related to store closures are primarily comprised of losses
on rental merchandise, lease obligation costs, employee severance,
asset disposals, and miscellaneous costs incurred as a result of
the closures.
Webcast Information
Rent-A-Center, Inc. will host a conference call to discuss the
second quarter results and other operational matters on Tuesday
morning, July 31, 2018, at 8:30 a.m. ET. For a live webcast of the
call, visit http://investor.rentacenter.com. Certain financial and other statistical
information that will be discussed during the conference call will
also be provided on the same website. Residents of the United
States and Canada can listen to the call by dialing (800) 399-0012.
International participants can access the call by dialing (404)
665-9632.
About Rent-A-Center,
Inc.
A rent-to-own industry leader, Plano, Texas-based,
Rent-A-Center, Inc., is focused on improving the quality of life
for its customers by providing them the opportunity to obtain
ownership of high-quality, durable products such as consumer
electronics, appliances, computers, furniture and accessories,
under flexible rental purchase agreements with no long-term
obligation. The Company owns and operates approximately 2,350
stores in the United States, Mexico, Canada and Puerto Rico, and
approximately 1,250 Acceptance Now kiosk locations in the United
States and Puerto Rico. Rent-A-Center Franchising International,
Inc., a wholly owned subsidiary of the Company, is a national
franchiser of approximately 250 rent-to-own stores operating under
the trade names of "Rent-A-Center", "ColorTyme", and "RimTyme". For
additional information about the Company, please visit our website
at www.rentacenter.com.
Forward Looking
Statements
This press release and the guidance above contain
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," "could," "estimate," "should,"
"anticipate," "believe," or “confident,” or the negative
thereof or variations thereon or similar terminology. The Company
believes that the expectations reflected in such forward-looking
statements are accurate. However, there can be no assurance that
such expectations will occur. The Company's actual future
performance could differ materially from such statements. Factors
that could cause or contribute to such differences include, but are
not limited to: the general strength of the economy and other
economic conditions affecting consumer preferences and spending;
factors affecting the disposable income available to the Company's
current and potential customers; changes in the unemployment rate;
the occurrence of any event, change or other circumstances that
could give rise to the termination of the Vintage Merger Agreement
with Vintage; the inability to complete the transaction due to the
failure to obtain stockholder approval for the Vintage Merger or
the failure to satisfy other conditions to completion of the
Vintage Merger, including that a governmental entity may prohibit,
delay or refuse to grant approval for the consummation of the
transaction; risks regarding the failure of Vintage to obtain the
necessary debt and/or equity financing to complete the Vintage
Merger; risks relating to operations of the business and the
Company’s financial results if the Vintage Merger Agreement is
terminated; risks related to disruption of management’s attention
from the Company's ongoing business operations due to the pending
merger transaction; the effect of the announcement, pendency or
consummation of the Vintage Merger on the Company’s relationships
with third parties, including its employees, franchisees,
customers, suppliers, business partners and vendors, which make it
more difficult to maintain business and operations relationships,
and negatively impact the operating results of the four core
business segments and business generally; the risk that certain
approvals or consents will not be received in a timely manner or
that the Vintage Merger will not be consummated in a timely manner;
capital market conditions, including availability of funding
sources for the Company and Vintage; changes in the Company’s
credit ratings; the risk of stockholder litigation in connection
with the proposed merger transaction, and the impact of any adverse
legal judgments, fines, penalties, injunctions or settlements
thereof; difficulties encountered in improving the financial and
operational performance of the Company's business segments; the
Company’s ability to refinance its revolving credit facility
expiring in early 2019 on favorable terms, if at all; risks
associated with pricing changes and strategies being deployed in
the Company's businesses; the Company's ability to realize any
benefits from its initiatives regarding cost-savings and other
EBITDA enhancements, efficiencies and working capital improvements;
the Company's chief executive officer transition, including the
Company's ability to continue to effectively operate and execute
its strategies; the Company's ability to execute its franchise
strategy; failure to manage the Company's store labor and other
store expenses; the Company’s ability to successfully execute its
announced strategic initiatives; disruptions caused by the
operation of the Company's store information management system; the
Company's transition to more-readily scalable, “cloud-based”
solutions; the Company's ability to develop and successfully
implement digital or E-commerce capabilities, including mobile
applications; disruptions in the Company's supply chain;
limitations of, or disruptions in, the Company's distribution
network, and the impact, effects and results of the changes we have
made and are making to our distribution methods; rapid inflation or
deflation in the prices of the Company's products; the Company's
ability to execute and the effectiveness of a store consolidation,
including the Company's ability to retain the revenue from customer
accounts merged into another store location as a result of a store
consolidation; the Company's available cash flow; the Company's
ability to identify and successfully market products and services
that appeal to its customer demographic; consumer preferences and
perceptions of the Company's brand; the Company's ability to retain
the revenue associated with acquired customer accounts and enhance
the performance of acquired stores; the Company's ability to enter
into new and collect on its rental or lease purchase agreements;
the passage of legislation adversely affecting the Rent-to-Own
industry; the Company's compliance with applicable statutes or
regulations governing its transactions; changes in interest rates;
adverse changes in the economic conditions of the industries,
countries or markets that the Company serves; information
technology and data security costs; the impact of any breaches in
data security or other disturbances to the Company's information
technology and other networks and the Company's ability to protect
the integrity and security of individually identifiable data of its
customers and employees; changes in estimates relating to
self-insurance liabilities and income tax and litigation reserves;
changes in the Company's effective tax rate; fluctuations in
foreign currency exchange rates; the Company's ability to maintain
an effective system of internal controls; the resolution of the
Company's litigation; and the other risks detailed from time to
time in the Company's SEC reports, including but not
limited to, its Annual Report on Form 10-K for the year
ended December 31, 2017, and its Quarterly Report on Form 10-Q
for the quarter ended March 31, 2018. 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 required
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 hereof or to reflect the occurrence
of unanticipated events.
Additional Information and Where to
Find It
The Company and certain of its executive officers, directors,
other members of management and employees, may under the rules of
the SEC, be deemed to be "participants" in the solicitation of
proxies from the Company's stockholders in connection with the
proposed merger transaction with affiliates of Vintage Capital
Management, LLC. Information regarding certain of these persons
(including their beneficial ownership of the Company's common
stock) is set forth in the Company's proxy statement for its 2018
annual meeting of stockholders filed on April 24, 2018 with the
SEC, as well as in preliminary and definitive proxy materials, each
of which can be obtained free of charge from the sources indicated
below.
This communication does not constitute an offer to sell or the
solicitation of an offer to buy our securities or the solicitation
of any vote or approval. The proposed merger of the Company will be
submitted to the Company's stockholders for their consideration. In
connection with the proposed transaction, the Company has filed a
preliminary proxy statement, and intends to file a definitive proxy
statement with the SEC in connection with the solicitation of
proxies. The definitive proxy statement will be mailed to the
Company's stockholders. BEFORE MAKING ANY VOTING OR INVESTMENT
DECISION WITH RESPECT TO THE PROPOSED TRANSACTION, INVESTORS AND
STOCKHOLDERS OF RENT-A-CENTER, INC. ARE URGED TO READ THE
DEFINITIVE PROXY STATEMENT REGARDING THE PROPOSED TRANSACTION
(INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND OTHER
RELEVANT MATERIALS CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME
AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE
PROPOSED TRANSACTION. The proxy statement, any amendments or
supplements thereto and other relevant materials, and any other
documents filed by the Company with the SEC, may be obtained once
such documents are filed with the SEC free of charge at the SEC's
website at www.sec.gov. In addition, the Company's stockholders may
obtain free copies of the documents filed with the SEC through the
Investor Relations Department by (a) mail at Rent-A-Center, Inc.,
Attention: Maureen Short, Investor Relations, 5501 Headquarters
Drive, Plano TX 75024, (b) telephone at (972) 801-1899, or (c)
e-mail at maureen.short@rentacenter.com. You may also read and copy
any reports, statements and other information filed by the Company
with the SEC at the SEC public reference room at 450 Fifth Street,
N.W. Room 1200, Washington, D.C. 20549. Please call the SEC at
1-800-SEC-0330 or visit the SEC's website for further information
on its public reference room.
Rent-A-Center, Inc. and
Subsidiaries
STATEMENT OF EARNINGS (LOSS) HIGHLIGHTS
- UNAUDITED
Table 3
Three Months Ended June 30,
2018 2018 2017
2017
Before After Before After Special Items Special Items Special Items
Special Items (Non-GAAP (GAAP (Non-GAAP (GAAP (In thousands, except
per share data) Earnings) Earnings)
Earnings)
Earnings) Total revenues $ 655,730
$ 655,730 $ 677,635 $ 677,635 Operating profit (loss) 43,640
(1)
27,151 10,231
(3)
(873 ) Net earnings (loss) 25,555
(1)(2)
13,753 (596 )
(3)(4)
(8,893 ) Diluted earnings (loss) per common share $ 0.47
(1)(2)
$ 0.25 $ (0.01 )
(3)(4)
$ (0.17 ) Adjusted EBITDA $ 61,068 $ 61,068 $ 28,939 $ 28,939
Reconciliation to Adjusted EBITDA: Earnings (loss) before
income taxes $ 33,036
(1)
$ 16,547 $ (873 )
(3)(4)
$ (13,913 ) Add back: Other charges — 16,489 — 11,104 Debt
refinancing charges — — — 1,936 Interest expense, net 10,604 10,604
11,104 11,104 Depreciation, amortization and impairment of
intangibles 17,428 17,428 18,708
18,708 Adjusted EBITDA $ 61,068 $ 61,068 $ 28,939 $
28,939
(1) Excludes the effects of approximately $16.5 million of
pre-tax charges including $7.0 million related to cost savings
initiatives, $6.6 million in incremental legal and advisory fees,
and $4.4 million related to store closure costs, partially offset
by a $(1.5) million favorable contract termination settlement.
These charges increased net earnings and net earnings per diluted
share for the three months ended June 30, 2018, by
approximately $10.8 million and $0.20, respectively.
(2) Excludes the effects of $1.0 million of discrete income tax
adjustments.
(3) Excludes the effects of approximately $11.1 million of
pre-tax charges primarily related to the closure of Acceptance Now
locations, and incremental legal and advisory fees, These charges
reduced net earnings and net earnings per diluted share for the
three months ended June 30, 2017, by approximately $7.1
million and $0.14, respectively.
(4) Excludes the effects of $1.9 million of pre-tax debt
refinancing charges reducing net earnings and net earnings per
diluted share for the three months ended June 30, 2017, by
approximately $1.2 million and $0.02, respectively.
SELECTED BALANCE SHEET HIGHLIGHTS -
UNAUDITED
Table 4
June 30, (In thousands)
2018
2017 Cash and cash equivalents $ 116,833 $ 73,831
Receivables, net 69,678 64,379 Prepaid expenses and other assets
53,566 56,363 Rental merchandise, net On rent 640,637 706,086 Held
for rent 141,660 200,223 Goodwill 56,781 55,424 Total assets
1,366,287 1,472,598 Senior debt, net $ 38,031 $ 97,579
Senior notes, net 539,397 538,118 Total liabilities 1,097,950
1,223,801 Stockholders' equity 268,337 248,797
Rent-A-Center, Inc. and
Subsidiaries
CONSOLIDATED STATEMENTS OF EARNINGS
(LOSS) - UNAUDITED
Table 5
Three Months Ended June 30,
(In thousands, except per share data)
2018 2017 Revenues Store Rentals and fees $
562,403 $ 575,411 Merchandise sales 64,990 76,773 Installment sales
17,374 17,657 Other 2,271 2,519 Total
store revenues 647,038 672,360 Franchise Merchandise sales 4,880
3,214 Royalty income and fees 3,812 2,061
Total revenues 655,730 677,635 Cost of revenues Store Cost
of rentals and fees 156,041 159,276 Cost of merchandise sold 65,562
77,055 Cost of installment sales 5,617 5,708
Total cost of store revenues 227,220 242,039 Franchise cost
of merchandise sold 4,624 3,063 Total
cost of revenues 231,844 245,102 Gross
profit 423,886 432,533 Operating expenses Store expenses Labor
164,172 179,447 Other store expenses 156,854 177,050 General and
administrative expenses 41,792 47,097 Depreciation, amortization
and impairment of intangibles 17,428 18,708 Other charges
16,489
(1)
11,104
(3)
Total operating expenses 396,735 433,406 Operating profit (loss)
27,151 (873 ) Debt refinancing charges — 1,936 Interest expense
10,806 11,263 Interest income (202 ) (159 ) Earnings
(loss) before income taxes 16,547 (13,913 ) Income tax expense
(benefit) 2,794
(2)
(5,020 ) Net earnings (loss) $ 13,753 $ (8,893 )
Basic weighted average shares 53,450 53,292
Basic earnings (loss) per common share $ 0.26 $ (0.17
) Diluted weighted average shares 54,295
53,292 Diluted earnings (loss) per common share $ 0.25
$ (0.17 )
(1) Includes pre-tax charges of $7.0 million related to cost
savings initiatives, $6.6 million in incremental legal and advisory
fees, and $4.4 million related to store closure costs, partially
offset by a $(1.5) million favorable contract termination
settlement.
(2) Includes $1.0 million of discrete income tax
adjustments.
(3) Includes approximately $11.1 million of pre-tax charges
primarily related to the closure of Acceptance Now locations, and
incremental legal and advisory fees.
Rent-A-Center, Inc. and
Subsidiaries
SEGMENT INFORMATION HIGHLIGHTS -
UNAUDITED
Table 6
Three Months Ended June 30, (In thousands)
2018 2017 Revenues Core U.S. $ 455,720 $
457,025 Acceptance Now 179,011 203,321 Mexico 12,307 12,014
Franchising 8,692 5,275 Total revenues $ 655,730
$ 677,635 Table 7
Three Months Ended June
30, (In thousands)
2018 2017 Gross profit Core
U.S. $ 325,219 $ 318,006 Acceptance Now 86,050 103,934 Mexico 8,549
8,381 Franchising 4,068 2,212 Total gross profit $
423,886 $ 432,533 Table 8
Three Months
Ended June 30, (In thousands)
2018 2017 Operating
profit (loss) Core U.S. $ 43,527 (1) $ 30,980 Acceptance Now 29,157
(2) 18,597 (4) Mexico 887 (41 ) Franchising 1,909 1,092
Total segments 75,480 50,628 Corporate (48,329 ) (3) (51,501
) (5) Total operating profit (loss) $ 27,151 $ (873 )
(1) Includes approximately $11.4 million of pre-tax charges
primarily related to $7.0 million in cost savings initiatives, and
$4.4 million for store closure costs.
(2) Includes approximately $0.1 million of pre-tax charges
primarily related to cost savings initiatives.
(3) Includes approximately $5.0 million of pre-tax charges
primarily related to $6.6 million for incremental legal and
advisory fees, partially offset by credit adjustments of $(1.5)
million and $(0.1) million related to a favorable contract
termination settlement and cost savings initiatives,
respectively.
(4) Includes approximately $7.3 million of pre-tax charges
related to the closure of Acceptance Now locations.
(5) Includes approximately $3.3 million of pre-tax charges
primarily related to incremental legal and advisory fees.
Table 9
Three Months Ended June 30,
(In thousands)
2018 2017 Depreciation, amortization and
impairment of intangibles Core U.S. $ 6,440 $ 7,882
Acceptance Now 432 629 Mexico 273 526 Franchising 44
44 Total segments 7,189 9,081 Corporate 10,239 9,627
Total depreciation, amortization and impairment of intangibles $
17,428 $ 18,708 Table 10
Three
Months Ended June 30, (In thousands)
2018
2017 Capital expenditures Core U.S. $ 4,325 $ 8,600
Acceptance Now 35 612 Mexico 35 24 Total segments
4,395 9,236 Corporate 2,651 8,875 Total capital
expenditures $ 7,046 $ 18,111 Table 11
On Rent at June 30, Held for Rent at June 30,
(In thousands)
2018 2017 2018
2017 Rental merchandise, net Core U.S. $ 377,142 $ 373,907 $
135,563 $ 181,773 Acceptance Now 248,510 318,099 1,336 11,477
Mexico 14,985 14,080 4,761 6,973 Total
rental merchandise, net $ 640,637 $ 706,086 $ 141,660 $ 200,223
Table 12
June 30, (In thousands)
2018 2017 Assets Core U.S. $ 703,499 $ 781,141
Acceptance Now 314,773 396,092 Mexico 27,540 33,978 Franchising
4,434 2,402 Total segments 1,050,246 1,213,613
Corporate 316,041 258,985 Total assets $ 1,366,287 $
1,472,598
Rent-A-Center, Inc. and
Subsidiaries
LOCATION ACTIVITY - UNAUDITED
Table 13
Three Months Ended June 30, 2018 Core
U.S. Acceptance Now Staffed Acceptance
Now Direct Mexico Franchising
Total Locations at beginning of period 2,287 1,114
129 123 252 3,905 New location openings — 33 1 — 4 38 Acquired
locations remaining open — — — — — — Conversions — 1 (1 ) — — —
Closed locations Merged with existing locations (44 ) (24 ) (10 ) —
— (78 ) Sold or closed with no surviving location (10 ) — —
— (8 ) (18 ) Locations at end of period 2,233 1,124
119 123 248 3,847 Table 14
Three Months Ended June 30, 2017 Core U.S.
Acceptance Now Staffed Acceptance Now Direct
Mexico Franchising Total Locations at
beginning of period 2,453 1,389 96 131 229 4,298 New location
openings — 70 3 — — 73 Acquired locations remaining open — — — — —
— Conversions — (8 ) 8 — — — Closed locations Merged with existing
locations (13 ) (262 ) — — — (275 ) Sold or closed with no
surviving location (3 ) — (1 ) — (1 ) (5 ) Locations at end
of period 2,437 1,189 106 131 228 4,091
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180730005747/en/
Rent-A-Center, Inc.Maureen Short, 972-801-1899Interim Chief
Financial Officermaureen.short@rentacenter.com
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