Rent-A-Center 2Q Sales Off 5.5%
July 28, 2009
Rent-to-own store operator Rent-A-Center Inc. (NASDAQ/NGS:RCII), Plano, Texas, reported second quarter 2009 revenues of $679.6 million, a 5.5 percent decrease from the prior-year period, but net earnings were up 11.1 percent to $41.9 million.
Total revenues for the six months ended June 30,were $1.408 billion, a decrease of $68 million from total revenues of $1.476 billion for the same period in the prior year, primarily the result of a 3.6 percent reduction in same store sales and the anticipated revenue attrition from approximately 375 stores that received customer agreements from stores closed in the 2007 restructuring plan. Net earnings through 2009's first six months were $87.3 million, compared with $74.1 million for the same period in the prior year.
"We are pleased that our customer traffic in the quarter exceeded our expectations," said Mark E. Speese, the Rent-A-Center's chairman and CEO. "However, our average price per customer agreement was lower than expected in the second quarter, which we believe reflected our customer’s discretion in this difficult economy. Although our lower average price per customer agreement will impact our 2009 revenue forecast, we believe our expense management initiatives, focus on margin improvement and prudent use of cash will positively impact earnings for the year. As a result, we are increasing our guidance for 2009 diluted earnings per share to $2.32 to $2.42."
For Rent-A-Center's complete second-quarter financial release, click here.
Total revenues for the six months ended June 30,were $1.408 billion, a decrease of $68 million from total revenues of $1.476 billion for the same period in the prior year, primarily the result of a 3.6 percent reduction in same store sales and the anticipated revenue attrition from approximately 375 stores that received customer agreements from stores closed in the 2007 restructuring plan. Net earnings through 2009's first six months were $87.3 million, compared with $74.1 million for the same period in the prior year.
"We are pleased that our customer traffic in the quarter exceeded our expectations," said Mark E. Speese, the Rent-A-Center's chairman and CEO. "However, our average price per customer agreement was lower than expected in the second quarter, which we believe reflected our customer’s discretion in this difficult economy. Although our lower average price per customer agreement will impact our 2009 revenue forecast, we believe our expense management initiatives, focus on margin improvement and prudent use of cash will positively impact earnings for the year. As a result, we are increasing our guidance for 2009 diluted earnings per share to $2.32 to $2.42."
For Rent-A-Center's complete second-quarter financial release, click here.
