RENT A CENTER INC DE - FORM 8-K - EX-99.1 - EARNINGS PRESS RELEASE, DATED JULY 21, 2014 - July 21, 2014

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Exhibit 99.1
For Immediate Release:
RENT-A-CENTER, INC. REPORTS
SECOND QUARTER 2014 RESULTS
Total Revenues Increased 1.7%
Revenue Increased Over 32% in Acceptance Now and Over 56% in Mexico
Diluted Earnings per Share of $0.33, Including a Restructuring Charge of Approximately $0.05 per Diluted Share Related to Store Consolidation Plan
______________________________________________
Plano, Texas, July 21, 2014 — Rent-A-Center, Inc. (the "Company") (NASDAQ/NGS: RCII), the nation's largest rent-to-own operator, today announced results for the quarter ended June 30, 2014.
Second Quarter 2014 Results
Total revenues were $773.2 million, an increase of $12.7 million from total revenues of $760.5 million for the same period in the prior year. This 1.7% increase in total revenues was primarily due to increases of approximately $38.3 million in the Acceptance Now segment and approximately $6.4 million in the Mexico segment, partially offset by a decrease of approximately $30.4 million in the Core U.S. segment.
Same store sales increased 0.6% as compared to the same period in the prior year, primarily attributable to increases of 25.1% and 17.0% in the Acceptance Now and Mexico segments, respectively, partially offset by a 4.7% decrease in the Core U.S. segment.  
Net earnings and net earnings per diluted share were $17.5 million and $0.33, respectively, as compared to $41.9 million and $0.76, respectively, for the same period in the prior year. Net earnings and net earnings per diluted share for the quarter ended June 30, 2014 were reduced by a $4.4 million pre-tax restructuring charge, and approximately $0.05 per diluted share, respectively, related to the consolidation of 150 stores into existing Core U.S. stores as discussed below.
Adjusted net earnings per diluted share were $0.38, when excluding the pre-tax restructuring charge, as compared to net earnings per diluted share of $0.76 for the same period in the prior year. These results include dilution related to the Mexico segment of approximately $0.08 per diluted share in the current quarter and $0.07 per diluted share for the same period in the prior year.
“As announced on July 10, we faced a difficult retail environment in the second quarter, not unlike many retailers that serve a similar demographic. As a result, revenue and earnings for the second quarter 2014 did not meet expectations,” said Robert D. Davis, the Chief Executive Officer of Rent-A-Center, Inc.
“We acknowledge the challenging retail environment is not a justification for our financial results, but rather an opportunity to better serve our customers and improve our operating performance. We believe we are up to this challenge. To that end, we have rolled out an exciting new product - smartphones and no-contract airtime plans - this month in substantially all of our Core U.S. stores. In addition, we are in the midst of executing on our transformative strategic initiatives outlined at our investor day and look forward to updating you on our progress during tomorrow’s conference call,” Mr. Davis concluded.
Six Months Ended June 30, 2014 Results
Total revenues were $1,607.0 million, an increase of $27.2 million from total revenues of $1,579.8 million in the same period in the prior year. This 1.7% increase in total revenues was primarily due to increases of approximately $85.3 million in the Acceptance Now segment and approximately $12.8 million in the Mexico segment, partially offset by a decrease of approximately $68.1 million in the Core U.S. segment.
Same store sales decreased 0.2% as compared to the same period in the prior year, primarily attributable to a 5.5% decrease in the Core U.S. segment, partially offset by increases of 25.6% and 18.5% in the Acceptance Now and Mexico segments, respectively.
Net earnings and net earnings per diluted share were $46.4 million and $0.87, respectively, as compared to $88.0 million and $1.55, respectively, in the same period in the prior year.




Net earnings and net earnings per diluted share for the six months ended June 30, 2014, were impacted by the following significant items, as discussed below:
•
A $4.4 million pre-tax restructuring charge, and approximately $0.05 per diluted share, respectively, related to the consolidation of 150 stores into existing Core U.S. stores; and
•
A $1.9 million pre-tax financing charge, and approximately $0.03 per diluted share, respectively, to write off unamortized financing costs from the previous credit agreement.
Collectively, these items reduced net earnings per diluted share by approximately $0.08.
Adjusted net earnings per diluted share were $0.95, when excluding the items above, as compared to net earnings per diluted share of $1.55 for the same period in the prior year. These results include dilution related to the Mexico segment of approximately $0.15 per diluted share in the current six-month period and $0.12 per diluted share for the same period in the prior year.
For the six months ended June 30, 2014, the Company generated cash flow from operations of approximately $69.0 million, while ending the quarter with approximately $68.1 million of cash on hand. The Company will pay its 17th consecutive quarterly cash dividend on July 24, 2014.
2014 Guidance
•
2.5% to 4.0% total revenue growth for 2014.
◦
2.0% to 3.0% for Q3'14.
•
1.5% to 2.5% same store sales growth for 2014.
◦
2.0% to 3.0% for Q3'14.
▪
(3.5%) to (4.5%) for Core U.S. segment in Q3'14.
▪
25% to 30% for Acceptance Now segment in Q3'14.
▪
15% to 20% for Mexico segment in Q3'14.
•
EBITDA in the range of $300 to $310 million for 2014.
•
Annual effective tax rate in the range of 37% to 38% for 2014.
◦
33% to 34% for Q3'14.
•
Diluted earnings per share in the range of $2.00 to $2.15 for 2014, including approximately $0.25 per share dilution related to Mexico.
◦
$0.43 to $0.51 for Q3'14.
•
Capital expenditures of approximately $95 million.
•
The Company expects to open approximately 190 domestic Acceptance Now kiosks.
•
The Company expects to open approximately 30 rent-to-own store locations in Mexico, all of which were opened in the six months ended June 30, 2014.
•
The 2014 guidance does not include the potential impact of any repurchases of common stock the Company may make, changes in future dividends, material changes in outstanding indebtedness, or the potential impact of acquisitions, dispositions or store closures that may be completed or occur after July 21, 2014.
"We believe the macro-environment will continue to be challenging in the back half of the year and as a result expect soft customer demand in our Core U.S. segment to persist," said Mr. Davis. "We are excited about the smartphone rollout in the third quarter; however, we believe the impact to our third quarter results will be minimal and expect our diluted earnings per share to be similar to the third quarter of 2013. We believe the smartphone sales trend will accelerate, providing a significant impact in the fourth quarter and giving us confidence in our ability to achieve our updated annual diluted earnings per share guidance," Mr. Davis concluded.




2014 Significant Items
Restructuring Charge. During the second quarter of 2014, the Company closed 150 Core U.S. stores and merged those accounts into existing Core U.S. stores as part of a multi-year program to improve profitability in the Core U.S. segment. The decision to close these stores was based on management's analysis and evaluation of the markets in which the Company operates, including market share, operating results, competitive positioning and growth potential for the affected stores. The store closures resulted in a pre-tax restructuring charge of $4.4 million during the second quarter of 2014. This charge included approximately $3.2 million of accelerated depreciation expense for fixed assets, leasehold improvements and write-off of merchandise inventory, $0.9 million in early lease termination costs and $0.3 million of other operating costs to decommission the stores. This restructuring charge reduced net earnings per diluted share by approximately $0.05 in both the three-month and six-month periods ended June 30, 2014.
We have not recorded a liability for future lease obligations on these properties as the fair value of the liability at the cease-use date was reduced to zero by estimated sublease rentals that could be obtained for the properties. Accordingly, future lease obligations of approximately $4.4 million that remain as of June 30, 2014, will either be expensed monthly as paid or recognized in full upon negotiation of early termination. Approximately $1.8 million of these remaining lease obligations are scheduled to be paid in the second half of 2014, and substantially all the remainder are scheduled to be paid out through 2016.
Senior Credit Facility Financing Charge. During the first quarter of 2014, the Company recorded a pre-tax charge of approximately $1.9 million to write off unamortized financing costs from the previous credit agreement closed in July 2011. This financing charge reduced net earnings per diluted share by approximately $0.03 for the six-month period ended June 30, 2014.

------------------

Rent-A-Center, Inc. will host a conference call to discuss the second quarter results, guidance and other operational matters on Tuesday morning, July 22, 2014, at 10:45 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.
Rent-A-Center, Inc., headquartered in Plano, Texas, is the largest rent-to-own operator in North America, 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 3,025 stores in the United States, Mexico, Canada and Puerto Rico, and approximately 1,360 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 180 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.






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," or "believe," 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; economic pressures, such as high fuel costs, affecting the disposable income available to the Company's current and potential customers; changes in the unemployment rate; difficulties encountered in improving the financial performance of the Core U.S. segment; the Company’s ability to develop and successfully execute the competencies and capabilities which are the focus of the Company’s multi-year program designed to transform and modernize the Company’s operations; costs associated with the Company's multi-year program designed to transform and modernize the Company’s operations; the Company’s ability to successfully market smartphones and related services to its customers; the Company's ability to develop and successfully implement digital electronic commerce capabilities; the Company's ability to retain the revenue from customer accounts merged into another store location as a result of the store consolidation plan; the Company's ability to execute and the effectiveness of the store consolidation; rapid inflation or deflation in prices of the Company's products; 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; uncertainties regarding the ability to open new locations; the Company's ability to acquire additional stores or customer accounts on favorable terms; the Company's ability to control costs and increase profitability; the Company's ability to enhance the performance of acquired stores; the Company's ability to retain the revenue associated with acquired customer accounts; 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 Company's ability to protect the integrity and security of individually identifiable data of its customers and employees; the impact of any breaches in data security or other disturbances to the Company's information technology and other networks; changes in the Company's stock price, the number of shares of common stock that it may or may not repurchase, and future dividends, if any; 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, 2013, and its quarterly report on Form 10-Q for the quarter ended March 31, 2014. 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 of this press release or to reflect the occurrence of unanticipated events.
Contact for Rent-A-Center, Inc.:
David E. Carpenter
Vice President of Investor Relations
(972) 801-1214
david.carpenter@rentacenter.com





Rent-A-Center, Inc. and Subsidiaries
STATEMENT OF EARNINGS HIGHLIGHTS
(Unaudited)
     (In thousands, except per share data)
 
Three Months Ended June 30,
 
 
2014
 
 
2014
 
 
2013 (2)
 
 
Before
 
 
After
 
 
After
 
 
Significant Items
 
 
Significant Items
 
 
Significant Items
 
 
(Non-GAAP
 
 
(GAAP
 
 
(GAAP
 
 
Earnings)
 
 
Earnings)
 
 
Earnings)
Total Revenues
 
$
773,217

 
 
$
773,217

 
 
$
760,511

Operating Profit
 
 
44,536

 
 
 
40,159

 
 
 
77,230

Net Earnings
 
 
20,216

(1) 
 
 
17,533

 
 
 
41,876

Diluted Earnings per Common Share
 
$
0.38

(1) 
 
$
0.33

 
 
$
0.76

Adjusted EBITDA
 
$
65,164

 
 
$
65,164

 
 
$
97,155

 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation to Adjusted EBITDA:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings Before Income Taxes
 
$
32,985

(1) 
 
$
28,608

 
 
$
67,557

Add back:
 
 
 
 
 
 
 
 
 
 
 
Restructuring charge
 
 
—

 
 
 
4,377

 
 
 
—

Finance charges from refinancing
 
 
—

 
 
 
—

 
 
 
—

Interest Expense, net
 
 
11,551

 
 
 
11,551

 
 
 
9,673

Depreciation of Property Assets
 
 
18,583

 
 
 
18,583

 
 
 
18,760

Amortization and Write-down of Intangibles
 
 
2,045

 
 
 
2,045

 
 
 
1,165

 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA
 
$
65,164

 
 
$
65,164

 
 
$
97,155

(1) Excludes the effects of a $4.4 million pre-tax restructuring charge related to the consolidation of 150 stores as discussed above. This charge reduced net earnings and net earnings per diluted share for the quarter ended June 30, 2014, by approximately $2.7 million and $0.05, respectively.
(2) As discussed in our Annual Report on Form 10-K for the year ended December 31, 2013, we identified errors in accounting for our estimates for rental merchandise reserves and for the allowance for doubtful accounts, resulting in an immaterial overstatement of on rent merchandise and understatements of held for rent merchandise and receivables which affected periods through December 31, 2013. We increased (decreased) previously reported salaries and other expenses, operating profit, income tax expense and net earnings by $0.2 million, $(0.2) million, $(0.1) million and $(0.1) million in our historical financial statement highlights and financial statements for the three-month period ended June 30, 2013, reported herein.





     (In thousands, except per share data)
 
Six Months Ended June 30,
 
 
2014
 
 
2014
 
 
2013 (4)
 
 
Before
 
 
After
 
 
After
 
 
Significant Items
 
 
Significant Items
 
 
Significant Items
 
 
(Non-GAAP
 
 
(GAAP
 
 
(GAAP
 
 
Earnings)
 
 
Earnings)
 
 
Earnings)
Total Revenues
 
$
1,606,963

 
 
$
1,606,963

 
 
$
1,579,792

Operating Profit
 
 
104,299

 
 
 
99,922

 
 
 
156,014

Net Earnings
 
 
50,287

(3) 
 
 
46,390

 
 
 
88,009

Diluted Earnings per Common Share
 
$
0.95

(3) 
 
$
0.87

 
 
$
1.55

Adjusted EBITDA
 
$
144,813

 
 
$
144,813

 
 
$
195,302

 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation to Adjusted EBITDA:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings Before Income Taxes
 
$
81,583

(3) 
 
$
75,260

 
 
$
138,633

Add back:
 
 
 
 
 
 
 
 
 
 
 
Restructuring charge
 
 
—

 
 
 
4,377

 
 
 
—

Finance charges from refinancing
 
 
—

 
 
 
1,946

 
 
 
—

Interest Expense, net
 
 
22,716

 
 
 
22,716

 
 
 
17,381

Depreciation of Property Assets
 
 
37,722

 
 
 
37,722

 
 
 
37,233

Amortization and Write-down of Intangibles
 
 
2,792

 
 
 
2,792

 
 
 
2,055

 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA
 
$
144,813

 
 
$
144,813

 
 
$
195,302

(3) Excludes the effects of a $4.4 million pre-tax restructuring charge in the second quarter related to the consolidation of 150 stores as discussed above, and the effects of a $1.9 million pre-tax charge in the first quarter to write off unamortized financing costs from the previous credit agreement closed in July 2011. These charges reduced net earnings and net earnings per diluted share for the six months ended June 30, 2014, by approximately $3.9 million and $0.08, respectively.
(4) As discussed in our Annual Report on Form 10-K for the year ended December 31, 2013, we identified errors in accounting for our estimates for rental merchandise reserves and for the allowance for doubtful accounts, resulting in an immaterial overstatement of on rent merchandise and understatements of held for rent merchandise and receivables which affected periods through December 31, 2013. We increased (decreased) previously reported salaries and other expenses, operating profit, income tax expense and net earnings by $0.7 million, $(0.7) million, $(0.3) million and $(0.4) million in our historical financial statement highlights and financial statements for the six-month period ended June 30, 2013, reported herein. We also increased (decreased) previously reported accounts receivable, on rent rental merchandise inventory, held for rent rental merchandise, total assets, total liabilities and stockholders' equity by $4.3 million, $(15.5) million, $1.2 million, $(10.0) million, $(3.8) million and $(6.2) million, respectively, at June 30, 2013.
 
     (In thousands of dollars)
 
June 30,
 
 
 
2014
 
 
2013 (4)
 
Cash and Cash Equivalents
 
$
68,068

 
 
$
78,491

 
Receivables, net
 
 
59,520

 
 
 
52,627

 
Prepaid Expenses and Other Assets
 
 
75,063

 
 
 
70,441

 
Rental Merchandise, net
 
 
 
 
 
 
 
 
On Rent
 
 
855,821

 
 
 
833,725

 
Held for Rent
 
 
247,375

 
 
 
219,485

 
Total Assets
 
$
3,017,760

 
 
$
2,930,459

 
 
 
 
 
 
 
 
 
 
Senior Debt
 
$
393,238

 
 
$
323,775

 
Senior Notes
 
 
550,000

 
 
 
550,000

 
Total Liabilities
 
 
1,647,118

 
 
 
1,610,457

 
Stockholders' Equity
 
$
1,370,642

 
 
$
1,320,002

 




Rent-A-Center, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)

(In thousands, except per share data)
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2014
 
2013 (2)
 
2014
 
2013 (4)
Revenues
 
 
 
Store
 
 
 
 
 
 
 
Rentals and fees
$
684,134

 
$
668,947

 
$
1,378,302

 
$
1,342,551

Merchandise sales
59,610

 
59,790

 
167,671

 
173,363

Installment sales
18,054

 
17,537

 
36,410

 
34,664

Other
3,734

 
5,001

 
7,992

 
9,761

Franchise
 
 
 
 
 
 
 
Merchandise sales
5,963

 
7,843

 
13,287

 
16,676

Royalty income and fees
1,722

 
1,393

 
3,301

 
2,777

 
773,217

 
760,511

 
1,606,963

 
1,579,792

Cost of revenues
 
 
 
 
 
 
 
Store
 
 
 
 
 
 
 
Cost of rentals and fees
177,512

 
168,928

 
355,382

 
336,847

Cost of merchandise sold
47,113

 
47,260

 
126,730

 
133,559

Cost of installment sales
6,358

 
6,189

 
12,740

 
12,158

Franchise cost of merchandise sold
5,737

 
7,514

 
12,737

 
15,930

 
236,720

 
229,891

 
507,589

 
498,494

Gross profit
536,497

 
530,620

 
1,099,374

 
1,081,298

Operating expenses
 
 
 
 
 
 
 
Salaries and other expenses
443,799

 
413,865

 
901,429

 
846,056

General and administrative expenses
46,117

 
38,360

 
90,854

 
77,173

Amortization and write-down of intangibles
2,045

 
1,165

 
2,792

 
2,055

Restructuring charge
4,377

 
—

 
4,377

 
—

 
496,338

 
453,390

 
999,452

 
925,284

 
 
 
 
 
 
 
 
Operating profit
40,159

 
77,230

 
99,922

 
156,014

Finance charges from refinancing
—

 
—

 
1,946

 
—

Interest expense
11,796

 
9,856

 
23,197

 
17,857

Interest income
(245
)
 
(183
)
 
(481
)
 
(476
)
Earnings before income taxes
28,608

 
67,557

 
75,260

 
138,633

Income tax expense
11,075

 
25,681

 
28,870

 
50,624

NET EARNINGS
$
17,533

 
$
41,876

 
$
46,390

 
$
88,009

 
 
 
 
 
 
 
 
Basic weighted average shares
52,824

 
54,885

 
52,809

 
56,416

 
 
 
 
 
 
 
 
Basic earnings per common share
$
0.33

 
$
0.76

 
$
0.88

 
$
1.56

 
 
 
 
 
 
 
 
Diluted weighted average shares
53,074

 
55,253

 
53,047

 
56,794

 
 
 
 
 
 
 
 
Diluted earnings per common share
$
0.33

 
$
0.76

 
$
0.87

 
$
1.55








Rent-A-Center, Inc. and Subsidiaries

SEGMENT INFORMATION HIGHLIGHTS
(Unaudited)

On January 1, 2014, the Company realigned its reporting structure to include its 18 Canadian stores in the Core U.S. segment, which were previously reported in the International segment. The accompanying prior-year amounts and store counts have been revised to reflect this change, and we now refer to the segment formerly reported as "International" as "Mexico" since only that country's results are reported therein.
(In thousands of dollars)
Three Months Ended June 30, 2014
 
Core U.S.
 
Acceptance Now
 
Mexico
 
Franchising
 
Total
Revenue
$
592,040

 
$
155,797

 
$
17,695

 
$
7,685

 
$
773,217

Gross profit
431,920

 
89,876

 
12,753

 
1,948

 
536,497

Operating profit (loss)
28,161

 
18,399

 
(6,818
)
 
417

 
40,159

Depreciation of property assets
17,884

 
1,426

 
1,788

 
51

 
21,149

Amortization and write-down of intangibles
1,903

 
142

 
—

 
—

 
2,045

Capital expenditures
13,685

 
3,073

 
1,584

 
—

 
18,342

(In thousands of dollars)
Three Months Ended June 30, 2013
 
Core U.S.
 
Acceptance Now
 
Mexico
 
Franchising
 
Total (2)
Revenue
$
622,469

 
$
117,493

 
$
11,313

 
$
9,236

 
$
760,511

Gross profit
451,920

 
68,770

 
8,208

 
1,722

 
530,620

Operating profit (loss)
65,656

 
17,394

 
(6,362
)
 
542

 
77,230

Depreciation of property assets
16,203

 
1,162

 
1,375

 
20

 
18,760

Amortization and write-down of intangibles
1,023

 
142

 
—

 
—

 
1,165

Capital expenditures
20,191

 
2,262

 
2,731

 
—

 
25,184

(In thousands of dollars)
Six Months Ended June 30, 2014
 
Core U.S.
 
Acceptance Now
 
Mexico
 
Franchising
 
Total
Revenue
$
1,226,803

 
$
330,004

 
$
33,568

 
$
16,588

 
$
1,606,963

Gross profit
888,509

 
182,783

 
24,231

 
3,851

 
1,099,374

Operating profit (loss)
72,018

 
39,976

 
(13,095
)
 
1,023

 
99,922

Depreciation of property assets
33,921

 
2,850

 
3,431

 
86

 
40,288

Amortization and write-down of intangibles
2,508

 
284

 
—

 
—

 
2,792

Capital expenditures
31,721

 
5,857

 
3,872

 
—

 
41,450

Rental merchandise, net
 
 
 
 
 
 
 
 
 
On rent
538,222

 
296,133

 
21,466

 
—

 
855,821

Held for rent
227,118

 
8,139

 
12,118

 
—

 
247,375

Total assets
2,545,380

 
396,158

 
74,361

 
1,861

 
3,017,760






(In thousands of dollars)
Six Months Ended June 30, 2013
 
Core U.S.
 
Acceptance Now
 
Mexico
 
Franchising
 
Total (4)
Revenue
$
1,294,877

 
$
244,656

 
$
20,806

 
$
19,453

 
$
1,579,792

Gross profit
926,992

 
135,877

 
14,906

 
3,523

 
1,081,298

Operating profit (loss)
132,734

 
33,044

 
(11,009
)
 
1,245

 
156,014

Depreciation of property assets
32,377

 
2,251

 
2,565

 
40

 
37,233

Amortization and write-down of intangibles
1,770

 
285

 
—

 
—

 
2,055

Capital expenditures
35,243

 
4,202

 
5,376

 
—

 
44,821

Rental merchandise, net
 
 
 
 
 
 
 
 
 
On rent
581,363

 
240,010

 
12,352

 
—

 
833,725

Held for rent
209,091

 
3,506

 
6,888

 
—

 
219,485

Total assets
2,542,102

 
328,644

 
58,104

 
1,609

 
2,930,459



SAME STORE SALES
(Unaudited)
 
 
2014
 
2013
Period
 
Core U.S.
 
Acceptance Now
 
Mexico
 
Total
 
Core U.S.
 
Acceptance Now
 
Mexico
 
Total
Three months ended March 31,
 
(6.1
)%
 
26.1
%
 
20.3
%
 
(0.8
)%
 
(8.7
)%
 
33.8
%
 
80.0
%
 
(4.3
)%
Three months ended June 30,
 
(4.7
)%
 
25.1
%
 
17.0
%
 
0.6
 %
 
(5.8
)%
 
32.0
%
 
61.3
%
 
(1.6
)%
Six months ended June 30,
 
(5.5
)%
 
25.6
%
 
18.5
%
 
(0.2
)%
 
(7.3
)%
 
32.9
%
 
69.3
%
 
(3.0
)%





Rent-A-Center, Inc. and Subsidiaries

LOCATION ACTIVITY
(Unaudited)
 
Location Activity - Three Months Ended June 30, 2014
 
Core U.S.
 
Acceptance Now
 
Mexico
 
Franchising
 
Total
Locations at beginning of period
2,997

 
1,355

 
173

 
178

 
4,703

New location openings
2

 
25

 
8

 
8

 
43

Acquired locations remaining open
1

 
—

 
—

 
—

 
1

Closed locations

 

 

 

 
 
Merged with existing locations
144

 
21

 
5

 
—

 
170

Sold or closed with no surviving location
9

 
—

 
—

 
6

 
15

Locations at end of period
2,847

 
1,359

 
176

 
180

 
4,562

Acquired locations closed and accounts merged with existing locations
6

 
—

 
—

 
—

 
6

 
Location Activity - Three Months Ended June 30, 2013
 
Core U.S.
 
Acceptance Now
 
Mexico
 
Franchising
 
Total
Locations at beginning of period
3,001

 
1,053

 
110

 
224

 
4,388

New location openings
2

 
110

 
20

 
2

 
134

Acquired locations remaining open
3

 
—

 
—

 
—

 
3

Closed locations
 
 
 
 
 
 
 
 
 
Merged with existing locations
14

 
10

 
—

 
—

 
24

Sold or closed with no surviving location
2

 
—

 
—

 
5

 
7

Locations at end of period
2,990

 
1,153

 
130

 
221

 
4,494

Acquired locations closed and accounts merged with existing locations
9

 
—

 
—

 
—

 
9

 
Location Activity - Six Months Ended June 30, 2014
 
Core U.S.
 
Acceptance Now
 
Mexico
 
Franchising
 
Total
Locations at beginning of period
3,010

 
1,325

 
151

 
179

 
4,665

New location openings
8

 
85

 
30

 
9

 
132

Acquired locations remaining open
1

 
—

 
—

 
—

 
1

Closed locations

 

 

 

 
 
Merged with existing locations
163

 
50

 
5

 
—

 
218

Sold or closed with no surviving location
9

 
1

 
—

 
8

 
18

Locations at end of period
2,847

 
1,359

 
176

 
180

 
4,562

Acquired locations closed and accounts merged with existing locations
6

 
—

 
—

 
—

 
6

 
Location Activity - Six Months Ended June 30, 2013
 
Core U.S.
 
Acceptance Now
 
Mexico
 
Franchising
 
Total
Locations at beginning of period
3,008

 
966

 
90

 
224

 
4,288

New location openings
9

 
208

 
40

 
5

 
262

Acquired locations remaining open
6

 
—

 
—

 
—

 
6

Closed locations
 
 
 
 
 
 
 
 
 
Merged with existing locations
30

 
21

 
—

 
—

 
51

Sold or closed with no surviving location
3

 
—

 
—

 
8

 
11

Locations at end of period
2,990

 
1,153

 
130

 
221

 
4,494

Acquired locations closed and accounts merged with existing locations
13

 
—

 
—

 
—

 
13



RENT A CENTER INC DE Reports