Business
Rent-A-Center, Inc. Reports Strong Fourth Quarter 2019 Results
Same Store Sales of 1.6%, Two Year Same Store Sales of 10.7% Double Digit Revenue Growth via Retail Partner Model Diluted EPS $0.72; Non-GAAP Diluted EPS
About this update from Upbound Group, Inc.
[{"type":"text","content":"\nSame Store Sales of 1.6%, Two Year Same Store Sales of 10.7%\n\n\nDouble Digit Revenue Growth via Retail Partner Model\n\n\nDiluted EPS $0.72; Non-GAAP Diluted EPS $0.58, up 66%\n\n PLANO, Texas--(BUSINESS WIRE)--\nRent-A-Center, Inc. (the \"Company\" or \"Rent-A-Center\") (NASDAQ/NGS: RCII) today announced results for the quarter ended December 31, 2019.\n\n\n“We're very pleased with fourth quarter results and excited about prospects to grow revenues and earnings in 2020,\" said Mitch Fadel, Chief Executive Officer of Rent-A-Center. \"We've accomplished a great deal to improve financial performance and position the Company for further growth as the lease-to-own sector evolves. We intend to build on our momentum in 2020 with a strategy to significantly grow the virtual business, maintain strong profitability and continue to enhance the Rent-A-Center customer experience.\"\n\n\nMr. Fadel continued, “We launched an integrated retail partner offering under the Preferred Lease brand to start the year, and we're focused on driving profitable sales by maximizing retail partners' opportunity to grow revenue using our flexible, differentiated offering. Our model has momentum, with 11 percent revenue growth and 35 percent invoice volume growth in the quarter driven by organic expansion and strong performance in Merchants Preferred. A new leader of national accounts supplemented by recent additions to our board has advanced our virtual strategy and positioned us to significantly expand invoice volume in our retail partner business.\"\n\n\n\"We also achieved our eighth consecutive quarter of positive same store sales in the core business, with a significant increase in the adjusted EBITDA margin in the quarter. Our lease portfolio continued to expand throughout 2019 and we are confident in our ability to sustain positive comparable store sales in 2020. We're encouraged by our e-commerce performance and have a number of initiatives underway to increase digital revenues and leverage our store base for final mile delivery,\" concluded Mr. Fadel.\n\n\nFederal Trade Commission Update\n\nThe Company entered into an agreement with the Federal Trade Commission (subject to a 30-day comment period) resolving the Civil Investigative Demand received in April 2019 related to the purchase and sale of customer lease agreements among Rent-A-Center, Aaro...