Business
Rent-A-Center, Inc. Reports Strong Third Quarter 2019 Results - Reiterates and Narrows Guidance Range
Same Store Sales of 4.5%, Two Year Same Store Sales of 10.2% Diluted EPS $0.56; Non-GAAP Diluted EPS $0.47, up 48.7% Merchants Preferred Integration
About this update from Upbound Group, Inc.
[{"type":"text","content":"\nSame Store Sales of 4.5%, Two Year Same Store Sales of 10.2%\n\n\nDiluted EPS $0.56; Non-GAAP Diluted EPS $0.47, up 48.7%\n\n\nMerchants Preferred Integration Exceeding Expectations\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 September 30, 2019.\n\n\n“I’m pleased to report strong third quarter results, which met our expectations. Consolidated same store sales increased 4.5 percent and the continued execution of our strategic plan drove adjusted EBITDA growth of 14.8 percent versus the third quarter of last year. As a result we are reiterating and narrowing our annual guidance,” stated Mitch Fadel, Chief Executive Officer of Rent-A-Center.\n\n\nMr. Fadel continued, “The integration with Merchants Preferred is progressing ahead of our expectations and we continue to believe our differentiated platform of offering both staffed and virtual options for our retail partners positions us for significant growth, including growth in national accounts and e-commerce retailers. Our focus is to serve lease-to-own customers across multiple channels by enhancing the customer experience through enabling technologies. In addition, we maintain a conservative balance sheet with ample capital to fund our growth initiatives and return capital to shareholders,” concluded Mr. Fadel.\n\n\nConsolidated Overview\n\n\nResults for the third quarter of 2019 are Non-GAAP excluding special items and compared to the third quarter of last year unless otherwise noted.\n\n\nOn a consolidated basis, total revenues of $649.4 million increased 0.7 percent driven by a consolidated same store sales increase of 4.5 percent offset by refranchising over 100 locations in the past twelve months and the closures of certain Core U.S. stores. Excluding effects on revenues resulting from the refranchising efforts, revenues increased 2.7 percent. Net earnings and diluted earnings per share, on a GAAP basis, were $31.3 million and $0.56 compared to net earnings and diluted earnings per share of $12.9 million and $0.24 in the third quarter of 2018.\n\n\nSpecial items in the third quarter of $(5.0) million were primarily driven by a tax benefit related to the reversal of previously recorded reserves for uncertain tax positions, partially offset by debt refinancing...