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| 8-K - FORM 8-K - RENT A CENTER INC DE | d79364e8vk.htm |
Exhibit 99.1
For Immediate Release:
RENT-A-CENTER, INC. REPORTS
FOURTH QUARTER AND YEAR END 2010 RESULTS
FOURTH QUARTER AND YEAR END 2010 RESULTS
Raises 2011 Revenue and EPS Guidance
Repurchased 1.4 Million Shares of Common Stock in the 4th Quarter
Diluted Earnings per Share of $0.49 in the 4th Quarter, Including Charges of $0.22 per
Diluted Share Related to Refinancing and the Financial Services Business
Plano, Texas, January 31, 2011 — Rent-A-Center, Inc. (the “Company”) (NASDAQ/NGS: RCII), the
nation’s largest rent-to-own operator, today announced revenues and earnings for the quarter and
year ended December 31, 2010.
Fourth Quarter 2010 Results
Total revenues for the quarter ended December 31, 2010, were $677.1 million, an increase of $4.2
million from total revenues of $672.9 million for the same period in the prior year. This increase
in revenues was primarily due to a $5.5 million increase in rentals and fees revenue driven by the
RAC Acceptance business. Same store sales for the quarter ended December 31, 2010, excluding
financial services revenue, were flat.
Net earnings and net earnings per diluted share for the three months ended December 31, 2010 were
$31.9 million and $0.49, respectively, as compared to $43.7 million and $0.66, respectively, for
the same period in the prior year.
Net earnings and net earnings per diluted share for the three months ended December 31, 2010 were
impacted by the following significant items, as discussed below:
| • | An $18.9 million pre-tax impairment charge, or approximately $0.19 per share, related to the discontinuation of the financial services business; and |
| • | A $3.1 million pre-tax financing expense, or approximately $0.03 per share, related to the repayment of $200.0 million of term loans under the Company’s senior secured credit facilities. |
Collectively, these items reduced net earnings per diluted share by approximately $0.22 in the
fourth quarter of 2010.
When excluding the items above, adjusted net earnings per diluted share for the three months ended
December 31, 2010 were $0.71, as compared to net earnings per diluted share for the three months
ended December 31, 2009 of $0.66, an increase of 7.6%.
“We had excellent results in the fourth quarter,” said Mark E. Speese, the Company’s Chairman and
Chief Executive Officer. “In our core rent-to-own business, customer demand remained strong with
our best gain in customer agreements in years and improvement in our margins with our continued
focus on expense control,” Speese stated. “As to our growth initiatives, we accelerated the
expansion of our RAC Acceptance business with the acquisition of 158 kiosk locations from The
Rental Store and have more than doubled our expected 2011 kiosk openings. We also successfully
entered the Mexico market with the opening of five stores during the fourth quarter. In addition
to these growth initiatives, we anticipate expanding in Canada, testing other retail concepts and
investing in technology in an effort to continue to improve the top line and drive additional
efficiencies,” Speese concluded.
Year End December 31, 2010 Results
Total revenues for the twelve months ended December 31, 2010, were $2.732 billion, a decrease of
$20.0 million from total revenues of $2.752 billion for the same period in the prior year. This
decrease in revenues was attributable to the November 2009 divestiture of dPi Teleconnect, LLC, the
Company’s subsidiary engaged in the prepaid telecommunications and energy business, which had
contributed approximately $50.5 million in merchandise sales for the twelve months ended December
31, 2009. Same store sales for the twelve months ended December 31, 2010, excluding financial
services revenue, decreased 0.4%.
Net earnings and net earnings per diluted share for the twelve months ended December 31, 2010 were
$171.6 million and $2.60, respectively, as compared to $167.9 million and $2.52, respectively, for
the same period in the prior year.
Net earnings and net earnings per diluted share for the twelve months ended December 31, 2010 were
impacted by the following significant items, as discussed below:
| • | An $18.9 million pre-tax impairment charge, or approximately $0.18 per share, related to the discontinuation of the financial services business; and |
| • | A $3.1 million pre-tax financing expense, or approximately $0.03 per share, related to the repayment of $200.0 million of term loans under the Company’s senior secured credit facilities. |
Collectively, these items reduced net earnings per diluted share by approximately $0.21 for the
twelve months ended December 31, 2010.
Net earnings and net earnings per diluted share for the twelve months ended December 31, 2009
included $4.9 million in pre-tax litigation credits, or approximately $0.04 per share, related to
the Hilda Perez matter as discussed below.
When excluding the items above, adjusted net earnings per diluted share for the twelve months ended
December 31, 2010 were $2.81, as compared to adjusted net earnings per diluted share for the twelve
months ended December 31, 2009 of $2.48, an increase of 13.3%.
“As a result of our strong operating results, we generated positive cash flow from operations of
approximately $216.5 million for the twelve month period through December 31, 2010, while ending
the quarter with approximately $70.7 million of cash on hand,” commented Robert D. Davis, the
Company’s Executive Vice President and Chief Financial Officer. “This significant cash flow
enabled us to return value to our stockholders with our first ever dividend of $0.06 per share in
the third quarter and our second dividend of $0.06 per share in the fourth quarter, as well as
repurchase 3.6 million shares of our common stock,” Davis stated. “In addition, we enhanced our
capital structure and extended our debt repayment schedules with the offering of $300 million of
senior unsecured notes due 2020. We used $200 million of the net proceeds from the offering to
repay term loans under the Company’s existing senior secured credit facility and the remaining net
proceeds will continue to be used to repurchase shares of the Company’s common stock,” Davis
concluded.
During the twelve month period ended December 31, 2010, the Company repurchased 3,585,495 shares of
its common stock for approximately $84.6 million in cash under its common stock repurchase program.
In the fourth quarter, the Company repurchased 1,403,993 shares of its common stock for
approximately $38.7 million in cash. To date, the Company has repurchased a total of 23,470,345
shares and has utilized approximately $551.2 million of the $800.0 million authorized by its Board
of Directors since the inception of the plan.
2010 Significant Items
Financial Services Charge. On October 25, 2010, the Company announced that, in connection with the
analysis of available growth initiatives, the Company was exploring strategic alternatives with
respect to the financial services business, including the possible sale or divestiture of such
business. As of December 31, 2010, the Company has sold a majority of the customer accounts at
approximately 214 financial services store locations, and closed six financial services store
locations in Montana as a result of state law changes enacted in the November general election.
Since December 31, 2010, the Company has sold a majority of the customer accounts at approximately
66 financial services store locations.
During the fourth quarter of 2010, the Company recorded a pre-tax impairment charge of
approximately $18.9 million related to the discontinuation of the financial services business. The
charge with respect to discontinuing the operations of all 331 store locations relate primarily to
fixed asset disposals, loan write-downs, and other miscellaneous items. This impairment charge
reduced diluted earnings per share in the fourth quarter of 2010 by approximately $0.19 and for the
twelve month period ended December 31, 2010 by approximately $0.18.
Senior Credit Facility Financing Expense. During the fourth quarter of 2010, the Company recorded
a pre-tax expense of approximately $3.1 million to write off the unamortized financing costs
related to the repayment of $200.0 million of term loans under the Company’s existing senior
secured credit facilities. This financing expense reduced diluted earnings per share in both the
fourth quarter of 2010 and for the twelve month period ended December 31, 2010 by approximately
$0.03.
2009 Significant Item
Hilda Perez Matter. In connection with the court approved settlement of the Hilda Perez v.
Rent-A-Center, Inc. matter in New Jersey, the Company previously recorded a pre-tax credit in the
amount of $3.0 million in the first quarter of 2009 and a pre-tax credit in the amount of $1.9
million in the second quarter of 2009 to account for cash payments to the Company representing
undistributed monies in the settlement fund to which the Company is entitled pursuant to the terms
of the settlement, as well as a refund of costs to administer the settlement previously paid by the
Company which were not expended during the administration of the settlement. Through the twelve
month period ended December 31, 2009, the total pre-tax credit of approximately $4.9 million
increased net earnings per diluted share by approximately $0.04.
- - -
Rent-A-Center, Inc. will host a conference call to discuss the fourth quarter results, guidance and
other operational matters on Tuesday morning, February 1, 2011, at 10:45 a.m. EDT. 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, currently operates approximately 3,000
company-owned stores nationwide and in Canada, Mexico and Puerto Rico. The stores generally offer
high-quality, durable goods such as major consumer electronics, appliances, computers and furniture
and accessories under flexible rental purchase agreements that generally allow the customer to
obtain ownership of the merchandise at the conclusion of an agreed upon rental period. ColorTyme,
Inc., a wholly owned subsidiary of the Company, is a national franchiser of approximately 210
rent-to-own stores operating under the trade name of “ColorTyme.”
The following statements are based on current expectations. These statements are
forward-looking and actual results may differ materially. These statements do not include the
potential impact of any repurchases of common stock the Company may make, future dividends, changes
in outstanding indebtedness, or the potential impact of acquisitions or dispositions that may be
completed after January 31, 2011.
FIRST QUARTER 2011 GUIDANCE:
Revenues
| • | The Company expects total revenues to be in the range of $745 million to $765 million. | |
| • | Store rental and fee revenues are expected to be between $615 million and $627 million. | |
| • | Total store revenues are expected to be in the range of $736 million to $756 million. | |
| • | Same store sales are expected to be in the range of 1.5% to 2.5%. | |
| • | The Company expects to open approximately 10 domestic rent-to-own store locations. | |
| • | The Company expects to add approximately 100 domestic RAC Acceptance kiosks. | |
| • | The Company expects to open approximately 5 rent-to-own locations in Mexico. |
Expenses
| • | The Company expects cost of rental and fees to be between 22.7% and 23.1% of store rental and fee revenue and cost of merchandise sold to be between 69.5% and 74.5% of store merchandise sales. | |
| • | Store salaries and other expenses are expected to be in the range of 53.0% to 54.5% of total store revenue. | |
| • | General and administrative expenses are expected to be approximately 4.5% of total revenue. | |
| • | Net interest expense is expected to be approximately $10 million and depreciation of property assets is expected to be approximately $16 million. | |
| • | The effective tax rate is expected to be in the range of 37.5% to 38.0% of pre-tax income. | |
| • | Diluted earnings per share are estimated to be in the range of $0.82 to $0.88. | |
| • | Diluted shares outstanding are estimated to be between 64.0 million and 65.0 million. |
FISCAL 2011 GUIDANCE:
Revenues
| • | The Company expects total revenues to be in the range of $2.868 billion and $2.928 billion. | |
| • | Store rental and fee revenues are expected to be between $2.477 billion and $2.527 billion. | |
| • | Total store revenues are expected to be in the range of $2.835 billion and $2.895 billion. | |
| • | Same store sales are expected to be in the range of 1.5% to 2.5%. | |
| • | The Company expects to add approximately 25 domestic rent-to-own store locations. | |
| • | The Company expects to add 275 to 325 domestic RAC Acceptance kiosks. | |
| • | The Company expects to open 40 to 75 rent-to-own locations in Mexico. | |
| • | The Company expects to open 10 to 20 rent-to-own locations in Canada. |
Expenses
| • | The Company expects cost of rental and fees to be between 22.8% and 23.4% of store rental and fee revenue and cost of merchandise sold to be between 74.5% and 78.5% of store merchandise sales. | |
| • | Store salaries and other expenses are expected to be in the range of 55.5% to 57.0% of total store revenue. | |
| • | General and administrative expenses are expected to be approximately 4.5% of total revenue. | |
| • | Net interest expense is expected to be approximately $33 million and depreciation of property assets is expected to be in the range of $61 million to $66 million. | |
| • | The effective tax rate is expected to be in the range of 37.5% to 38.0% of pre-tax income. | |
| • | Diluted earnings per share are estimated to be in the range of $2.90 to $3.10. | |
| • | Diluted shares outstanding are estimated to be between 64.0 million and 65.0 million. |
Store Activity
| Domestic | International | |||||||||||||||||||
| RAC | Get It Now/ | |||||||||||||||||||
| RTO | Acceptance | Home Choice | Canada | Mexico | ||||||||||||||||
Twelve Months Ended December 31, 2010 |
||||||||||||||||||||
Stores at beginning of period |
2,950 | 82 | 39 | 18 | — | |||||||||||||||
New store openings |
26 | 160 | 3 | — | 5 | |||||||||||||||
Acquired stores remaining open |
3 | 158 | — | — | — | |||||||||||||||
Closed stores |
||||||||||||||||||||
Merged with existing stores |
26 | 1 | — | — | — | |||||||||||||||
Sold or closed with no surviving store |
10 | 15 | — | — | — | |||||||||||||||
Stores at end of period |
2,943 | 384 | 42 | 18 | 5 | |||||||||||||||
Acquired stores closed and accounts merged with existing stores |
14 | — | — | — | — | |||||||||||||||
| Domestic | International | |||||||||||||||||||
| RAC | Get It Now/ | |||||||||||||||||||
| RTO | Acceptance | Home Choice | Canada | Mexico | ||||||||||||||||
Three Months Ended December 31, 2010 |
||||||||||||||||||||
Stores at beginning of period |
2,942 | 153 | 41 | 18 | — | |||||||||||||||
New store openings |
8 | 75 | 1 | — | 5 | |||||||||||||||
Acquired stores remaining open |
1 | 158 | — | — | — | |||||||||||||||
Closed stores |
||||||||||||||||||||
Merged with existing stores |
8 | 1 | — | — | — | |||||||||||||||
Sold or closed with no surviving store |
— | 1 | — | — | — | |||||||||||||||
Stores at end of period |
2,943 | 384 | 42 | 18 | 5 | |||||||||||||||
Acquired stores closed and accounts merged with existing stores |
1 | — | — | — | — | |||||||||||||||
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. Although the Company believes that the expectations reflected in such forward-looking
statements will prove to be correct, the Company can give no assurance that such expectations will
prove to have been correct. The actual future performance of the Company could differ materially
from such statements. Factors that could cause or contribute to such differences include, but are
not limited to: uncertainties regarding the ability to open new rent-to-own stores; the Company’s
ability to acquire additional rent-to-own stores or customer accounts on favorable terms; the
Company’s ability to control costs and increase profitability; the Company’s ability to identify
and successfully enter new lines of business offering products and services that appeal to its
customer demographic; 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 identify and successfully market products and services that appeal to its customer
demographic; the Company’s ability to enter into new and collect on its rental purchase agreements;
the passage of legislation adversely affecting the rent-to-own or financial services industries;
the Company’s failure to comply with statutes or regulations governing the rent-to-own or financial
services industries; interest rates; increases in the unemployment rate; economic pressures, such
as high fuel and utility costs, affecting the disposable income available to the Company’s targeted
consumers; changes in the Company’s stock price and the number of shares of common stock that it
may or may not repurchase; future dividends; changes in estimates relating to self-insurance
liabilities and income tax and litigation reserves; changes in the Company’s effective tax rate;
the Company’s ability to maintain an effective system of internal controls; changes in the number
of share-based compensation grants, methods used to value future share-based payments and changes
in estimated forfeiture rates with respect to share-based compensation; the resolution of material
litigation; our ability to successfully manage the strategic alternatives process with respect to
our financial services business and the results therefrom; 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, 2009, and its quarterly reports on Form 10-Q for the quarters ended
March 31, 2010, June 30, 2010 and September 30, 2010. 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
Vice President of Investor Relations
(972) 801-1214
david.carpenter@rentacenter.com
Rent-A-Center, Inc. and Subsidiaries
STATEMENT OF EARNINGS HIGHLIGHTS
| Three Months Ended December 31, | ||||||||||||
| 2010 | 2010 | 2009 | ||||||||||
| Before | After | |||||||||||
| Significant Items | Significant Items | |||||||||||
| (Non-GAAP | (GAAP | (GAAP | ||||||||||
| (In thousands of dollars, except per share data) | Earnings) | Earnings) | Earnings) | |||||||||
Total Revenue |
$ | 677,090 | $ | 677,090 | $ | 672,913 | ||||||
Operating Profit |
81,781 | 62,842 | (1) | 74,582 | ||||||||
Net Earnings |
45,620 | 31,854 | (1)(2) | 43,694 | ||||||||
Diluted Earnings per Common Share |
$ | 0.71 | $ | 0.49 | (1)(2) | $ | 0.66 | |||||
Adjusted EBITDA |
$ | 98,173 | $ | 98,173 | $ | 90,598 | ||||||
Reconciliation to Adjusted EBITDA: |
||||||||||||
Earnings Before Income Taxes |
$ | 73,482 | $ | 51,443 | $ | 70,082 | ||||||
Add back: |
||||||||||||
Impairment Charge |
— | 18,939 | — | |||||||||
Finance Charges from Refinancing |
— | 3,100 | — | |||||||||
Interest Expense, net |
8,299 | 8,299 | 4,500 | |||||||||
Depreciation of Property Assets |
16,258 | 16,258 | 15,601 | |||||||||
Amortization and Write-down of Intangibles |
134 | 134 | 415 | |||||||||
Adjusted EBITDA |
$ | 98,173 | $ | 98,173 | $ | 90,598 | ||||||
| Twelve Months Ended December 31, | ||||||||||||||||
| 2010 | 2010 | 2009 | 2009 | |||||||||||||
| Before | After | Before | After | |||||||||||||
| Significant Items | Significant Items | Significant Items | Significant Items | |||||||||||||
| (Non-GAAP | (GAAP | (Non-GAAP | (GAAP | |||||||||||||
| (In thousands of dollars, except per share data) | Earnings) | Earnings) | Earnings) | Earnings) | ||||||||||||
Total Revenue |
$ | 2,731,632 | $ | 2,731,632 | $ | 2,751,956 | $ | 2,751,956 | ||||||||
Operating Profit |
322,708 | 303,769 | (1) | 291,455 | 296,324 | (3) | ||||||||||
Net Earnings |
185,408 | 171,642 | (1)(2) | 164,823 | 167,855 | (3) | ||||||||||
Diluted Earnings per Common Share |
$ | 2.81 | $ | 2.60 | (1)(2) | $ | 2.48 | $ | 2.52 | (3) | ||||||
Adjusted EBITDA |
$ | 389,372 | $ | 389,372 | $ | 360,086 | $ | 360,086 | ||||||||
Reconciliation to Adjusted EBITDA: |
||||||||||||||||
Earnings Before Income Taxes |
$ | 296,796 | $ | 274,757 | $ | 265,501 | $ | 270,370 | ||||||||
Add back: |
||||||||||||||||
Litigation Expense (Credit) |
— | — | — | (4,869 | ) | |||||||||||
Impairment Charge |
— | 18,939 | — | — | ||||||||||||
Finance Charges from Refinancing |
— | 3,100 | — | — | ||||||||||||
Interest Expense, net |
25,912 | 25,912 | 25,954 | 25,954 | ||||||||||||
Depreciation of Property Assets |
63,410 | 63,410 | 65,788 | 65,788 | ||||||||||||
Amortization and Write-down of Intangibles |
3,254 | 3,254 | 2,843 | 2,843 | ||||||||||||
Adjusted EBITDA |
$ | 389,372 | $ | 389,372 | $ | 360,086 | $ | 360,086 | ||||||||
| (1) | Includes the effects of an $18.9 million pre-tax impairment charge in the fourth quarter of 2010 related to the discontinuation of the financial services business. The charge reduced diluted earnings per share by approximately $0.19 for the fourth quarter of 2010 and approximately $0.18 for the twelve month period ended December 31, 2010. | |
| (2) | Includes the effects of a $3.1 million pre-tax financing expense in the fourth quarter of 2010 related to the write-off of unamortized financing costs. The expense reduced diluted earnings per share by approximately $0.03 in both the fourth quarter of 2010 and the twelve month period ended December 31, 2010. | |
| (3) | Includes the effects of $4.9 million pre-tax litigation credit in the first and second quarter of 2009 related to the Hilda Perez matter. The litigation credits increased diluted earnings per share by approximately $0.04 for the twelve months ended December 31, 2009. |
SELECTED BALANCE SHEET HIGHLIGHTS
| December 31, | ||||||||
| Selected Balance Sheet Data: (in Thousands of Dollars) | 2010 | 2009 | ||||||
Cash and Cash Equivalents |
$ | 70,727 | $ | 101,803 | ||||
Receivables, net |
53,890 | 63,439 | ||||||
Prepaid Expenses and Other Assets |
170,713 | 50,680 | ||||||
Rental Merchandise, net |
||||||||
On Rent |
655,248 | 589,066 | ||||||
Held for Rent |
181,606 | 160,932 | ||||||
Total Assets |
$ | 2,688,331 | $ | 2,443,997 | ||||
Senior Debt |
$ | 401,114 | $ | 711,158 | ||||
Senior Notes |
300,000 | — | ||||||
Total Liabilities |
1,334,532 | 1,196,483 | ||||||
Stockholders’ Equity |
$ | 1,353,799 | $ | 1,247,514 | ||||
Rent-A-Center, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF EARNINGS
| Three Months Ended December 31, | ||||||||
| 2010 | 2009 | |||||||
| (In thousands of dollars, except per share data) | Unaudited | |||||||
Store Revenue |
||||||||
Rentals and Fees |
$ | 589,106 | $ | 583,650 | ||||
Merchandise Sales |
43,549 | 49,805 | ||||||
Installment Sales |
18,594 | 15,336 | ||||||
Other |
16,270 | 15,783 | ||||||
| 667,519 | 664,574 | |||||||
Franchise Revenue |
||||||||
Franchise Merchandise Sales |
8,420 | 7,193 | ||||||
Royalty Income and Fees |
1,151 | 1,146 | ||||||
Total Revenue |
677,090 | 672,913 | ||||||
Operating Expenses |
||||||||
Direct Store Expenses |
||||||||
Cost of Rentals and Fees |
131,777 | 131,740 | ||||||
Cost of Merchandise Sold |
34,912 | 37,729 | ||||||
Cost of Installment Sales |
7,367 | 5,486 | ||||||
Salaries and Other Expenses |
381,504 | 380,083 | ||||||
Franchise Cost of Merchandise Sold |
8,040 | 6,833 | ||||||
| 563,600 | 561,871 | |||||||
General and Administrative Expenses |
31,575 | 36,045 | ||||||
Amortization and Write-down of Intangibles |
134 | 415 | ||||||
Impairment Charge |
18,939 | — | ||||||
Total Operating Expenses |
614,248 | 598,331 | ||||||
Operating Profit |
62,842 | 74,582 | ||||||
Finance Charges from Refinancing |
3,100 | — | ||||||
Interest Expense |
8,547 | 4,648 | ||||||
Interest Income |
(248 | ) | (148 | ) | ||||
Earnings before Income Taxes |
51,443 | 70,082 | ||||||
Income Tax Expense |
19,589 | 26,388 | ||||||
NET EARNINGS |
$ | 31,854 | $ | 43,694 | ||||
BASIC WEIGHTED AVERAGE SHARES |
63,678 | 65,844 | ||||||
BASIC EARNINGS PER COMMON SHARE |
$ | 0.50 | $ | 0.66 | ||||
DILUTED WEIGHTED AVERAGE SHARES |
64,575 | 66,433 | ||||||
DILUTED EARNINGS PER COMMON SHARE |
$ | 0.49 | $ | 0.66 | ||||
Rent-A-Center, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF EARNINGS
| Twelve Months Ended December 31, | ||||||||
| 2010 | 2009 | |||||||
| (In thousands of dollars, except per share data) | Unaudited | |||||||
Store Revenue |
||||||||
Rentals and Fees |
$ | 2,335,496 | $ | 2,346,849 | ||||
Merchandise Sales |
220,329 | 261,631 | ||||||
Installment Sales |
63,833 | 53,035 | ||||||
Other |
76,542 | 57,601 | ||||||
| 2,696,200 | 2,719,116 | |||||||
Franchise Revenue |
||||||||
Franchise Merchandise Sales |
30,575 | 28,065 | ||||||
Royalty Income and Fees |
4,857 | 4,775 | ||||||
Total Revenue |
2,731,632 | 2,751,956 | ||||||
Operating Expenses |
||||||||
Direct Store Expenses |
||||||||
Cost of Rentals and Fees |
519,282 | 530,018 | ||||||
Cost of Merchandise Sold |
164,133 | 188,433 | ||||||
Cost of Installment Sales |
23,303 | 18,687 | ||||||
Salaries and Other Expenses |
1,543,391 | 1,556,074 | ||||||
Franchise Cost of Merchandise Sold |
29,242 | 26,820 | ||||||
| 2,279,351 | 2,320,032 | |||||||
General and Administrative Expenses |
126,319 | 137,626 | ||||||
Amortization and Write-down of Intangibles |
3,254 | 2,843 | ||||||
Litigation Expense (Credit) |
— | (4,869 | ) | |||||
Impairment Charge |
18,939 | — | ||||||
Total Operating Expenses |
2,427,863 | 2,455,632 | ||||||
Operating Profit |
303,769 | 296,324 | ||||||
Finance Charges from Refinancing |
3,100 | — | ||||||
Interest Expense |
26,766 | 26,791 | ||||||
Interest Income |
(854 | ) | (837 | ) | ||||
Earnings before Income Taxes |
274,757 | 270,370 | ||||||
Income Tax Expense |
103,115 | 102,515 | ||||||
NET EARNINGS |
$ | 171,642 | $ | 167,855 | ||||
BASIC WEIGHTED AVERAGE SHARES |
65,104 | 65,986 | ||||||
BASIC EARNINGS PER COMMON SHARE |
$ | 2.64 | $ | 2.54 | ||||
DILUTED WEIGHTED AVERAGE SHARES |
65,903 | 66,567 | ||||||
DILUTED EARNINGS PER COMMON SHARE |
$ | 2.60 | $ | 2.52 | ||||