Business
Rent-A-Center, Inc. Provides Business Update
Revenue and Earnings Guidance Provided for the Third Quarter Increased Guidance for 2020 PLANO, Texas--(BUSINESS WIRE)-- Rent-A-Center, Inc. (the "Company"
About this update from Upbound Group, Inc.
[{"type":"text","content":"\nRevenue and Earnings Guidance Provided for the Third Quarter\n\nIncreased Guidance for 2020\n\n PLANO, Texas--(BUSINESS WIRE)--\nRent-A-Center, Inc. (the \"Company\" or \"Rent-A-Center\") (NASDAQ/NGS: RCII) today provided a business update, guidance for the third quarter of 2020 and increased guidance for the full year of 2020.\n\n“Our business is continuing to perform very well driving better than expected financial results,” said Mitch Fadel, Chief Executive Officer. “Lease portfolio performance and customer payment activity have remained strong in both businesses even without additional government stimulus. While some uncertainty remains related to the pandemic, we are providing expectations for the third quarter and increasing guidance for 2020 given our continued strong performance and our improved outlook.”\n\nThird Quarter Guidance\n\nConsolidated Results\n\n\nThe Company expects consolidated revenues to be between $695 million and $715 million, Adjusted EBITDA between $85 million and $95 million, and Non-GAAP diluted earnings per share between $0.95 and $1.05.\n\n\nRent-A-Center Business\n\n\nFor the Rent-A-Center Business, revenues are expected to be between $465 million and $475 million and Adjusted EBITDA between $100 million and $105 million.\n\n\nSame store sales are expected to be between 10 and 12% for the third quarter.\n\n\nSkip/stolen losses for the third quarter are expected to be approximately 2% of revenue. The Company continues to believe its skip/stolen loss reserves do not require any adjustments for potential adverse trends related to the pandemic.\n\n\nPreferred Lease\n\n\nFor the Preferred Lease business, revenues are expected to be between $190 million and $200 million and Adjusted EBITDA between $15 million and $20 million.\n\n\nInvoice volume growth is expected to be approximately 35% for the third quarter on a year over year basis, sequentially better than the 25% growth in the second quarter.\n\n\nSkip/stolen losses in the third quarter are expected to be between 11% and 12% of revenue. The Company believes it has adequately reserved for potential adverse trends related to the pandemic and does not anticipate incremental pandemic related charges to be taken in the third or fourth quarters.\n\n\nUpdated 2020 Guidance (1)\n\nThe Company has increased full year 2020 guidance and now expects the fol...