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8-K - 8-K - RENT A CENTER INC DErcii4q12pressrelease.htm

Exhibit 99.1
For Immediate Release:
RENT-A-CENTER, INC. REPORTS
FOURTH QUARTER AND YEAR END 2012 RESULTS
Total Revenues Increased 2.8% for Quarter and 7% for Year
Revenue for RAC Acceptance Increased Over 77% and for International Over 117% for Year
Diluted Earnings per Share of $0.81 for Quarter and $3.09 for Year
Repurchased Approximately 931,000 Shares of Common Stock for Quarter and 1.8 Million for Year
______________________________________________
Plano, Texas, January 28, 2013 — 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, 2012.
Fourth Quarter 2012 Results
Total revenues for the quarter ended December 31, 2012, were $758.4 million, an increase of $20.9 million from total revenues of $737.5 million for the same period in the prior year. This 2.8% increase in total revenues was primarily due to growth in both the RAC Acceptance and International segments, partially offset by a decrease in the Core U.S. segment. For the quarter ended December 31, 2012, same store sales declined 0.2%, primarily attributable to a decrease in the Core U.S. segment, partially offset by an increase in both the RAC Acceptance and International segments.
Net earnings and net earnings per diluted share for the quarter ended December 31, 2012, were $47.5 million and $0.81, respectively, as compared to $49.3 million and $0.83, respectively, for the same period in the prior year. These results include dilution related to the Company's international growth initiatives of approximately $0.07 per share for the quarter ended December 31, 2012, and $0.06 per share for the same period in the prior year.
Net earnings per diluted share for the quarter ended December 31, 2012, were $0.81, as compared to adjusted net earnings per diluted share of $0.85 for the same period in the prior year, after giving effect to a pre-tax restructuring charge of $1.4 million (approximately $0.02 per share) related to the acquisition of 58 rent-to-own stores in November 2011, as discussed below.
“We are generally pleased with our overall 2012 results as we achieved total revenue growth of 7% and over a 6% increase in net earnings per diluted share to $3.09, both within our annual guidance issued last January,” said Mark E. Speese, the Company's Chairman and Chief Executive Officer. “The core rent-to-own business generated total revenue growth of 1% in 2012,” Speese continued. “In addition, the RAC Acceptance business continued to generate impressive results, with revenue growth of over 77% in 2012 to $343 million, an operating profit for the year of over $28 million and 966 kiosks open at December 31, 2012,” Speese commented. “In 2013, we intend to continue focusing on keeping the core business strong and further investing in our strategic initiatives, while continuing to return value to our shareholders through dividends and opportunistic common stock repurchases,” Speese concluded.





Year Ended December 31, 2012 Results
Total revenues for the year ended December 31, 2012, were $3.083 billion, an increase of $200.5 million from total revenues of $2.882 billion in the prior year. This 7.0% increase in total revenues was primarily due to growth in the RAC Acceptance segment as well as growth in both the Core U.S. and International segments. Same store sales for the year ended December 31, 2012, increased 1.4%, primarily attributable to the RAC Acceptance segment.
Net earnings and net earnings per diluted share for the year ended December 31, 2012, were $183.5 million and $3.09, respectively, as compared to $164.6 million and $2.66, respectively, in the prior year. These results include dilution related to the Company's international growth initiatives of approximately $0.33 per share for the year ended December 31, 2012, and $0.14 per share in the prior year.
Net earnings and net earnings per diluted share for the year ended December 31, 2011, were impacted by the following significant items, as discussed below:
A $1.4 million pre-tax restructuring charge, or approximately $0.01 per share, related to the acquisition of 58 rent-to-own stores;
A $7.6 million pre-tax restructuring charge, or approximately $0.08 per share, related to store closings;
A $4.9 million pre-tax restructuring charge, or approximately $0.05 per share, related to the acquisition of The Rental Store, Inc.;
A $7.3 million pre-tax impairment charge, or approximately $0.08 per share, related to the discontinuation of the financial services business; and
A $2.8 million pre-tax litigation expense, or approximately $0.03 per share, related to the settlement of wage and hour claims in California.
Collectively, these items reduced net earnings per diluted share by approximately $0.25 for the year ended December 31, 2011.
Net earnings per diluted share for the year ended December 31, 2012, were $3.09, as compared to adjusted net earnings per diluted share for the year ended December 31, 2011, of $2.91 when excluding the items above, an increase of 6.2%.
For the year ended December 31, 2012, the Company generated cash flow from operations of approximately $217.9 million, while ending the quarter with approximately $61.1 million of cash on hand. During the quarter ended December 31, 2012, the Company repurchased 930,541 shares for approximately $31.7 million, and for the year ended December 31, 2012, the Company repurchased 1,797,526 shares for approximately $61.9 million in cash under its common stock repurchase program. To date, the Company has repurchased a total of 31,120,279 shares and has utilized approximately $777.3 million of the $1 billion authorized by its Board of Directors since the inception of the plan. Also, reflecting continued confidence in its strong cash flows, the Company announced on December 17, 2012, that its Board of Directors approved a 31% increase in its quarterly cash dividend from $0.16 per share to $0.21 per share, beginning with the dividend for the first quarter of 2013. The Company paid its eleventh consecutive quarterly cash dividend on January 24, 2013.
Same Store Sales (SSS) Methodology Change
The Company also announced that it is modifying the methodology it uses to calculate same store sales, beginning with the first quarter of 2013. The 2013 guidance set forth below reflects the new methodology. The Company believes these modifications bring its same store sales calculation into alignment with the methods used by other major retailers. Below is a comparison of the current and revised methodologies.
Current Methodology
Revised Methodology
New or acquired store added to the SSS base in the fifth full quarter of operation. Inclusion in the year-to-date/annual SSS calculation required a store to be in operation for each of the entire year-to-date periods in the current and previous year.
New or acquired stores will be added to the SSS base in the 13th full month of operation




We will continue to exclude from the same store sales base any store that receives a certain level of customer accounts from another store (acquisition or merger). The receiving store will be eligible for inclusion in the same store sales base in the sixth full quarter following the account transfer.





2013 Guidance
5.0% to 8.0% total revenue growth.
In the first quarter, the Core U.S. is expected to decrease approximately 4.0%; but expected to remain flat for 2013.
Approximately $540 million contribution from RAC Acceptance.
Approximately 2.0% to 4.0% same store sales growth.
In the first quarter, consolidated same store sales is expected to decrease approximately 2.0%.
Approximately 50 basis points gross profit margin decrease.
Primarily due to the impact of RAC Acceptance.
In the first quarter, the RAC Acceptance gross profit margin is expected to be approximately 50% due to seasonality.
Approximately flat operating profit margin.
EBITDA in the range of $415 to $435 million.
Diluted earnings per share in the range of $3.25 to $3.40, including approximately $0.25 per share dilution related to our international growth initiatives.
Capital expenditures of approximately $120 million.
The Company expects to open approximately 425 domestic RAC Acceptance kiosks and net approximately 350.
The Company expects to open approximately 60 rent-to-own store locations in Mexico.
The 2013 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 January 28, 2013.
Updated new store economics will be posted on the Company's website (http://investor.rentacenter.com) just prior to the January 29, 2013 conference call.






2011 Significant Items
Restructuring Charges. As previously reported, the Company recorded a $1.4 million pre-tax restructuring charge during the fourth quarter of 2011 in connection with the acquisition in November 2011 of 58 rent-to-own stores. This charge relates primarily to post-acquisition lease terminations. This pre-tax restructuring charge of $1.4 million reduced net earnings per diluted share in the fourth quarter of 2011 by approximately $0.02 and for the year ended December 31, 2011 by approximately $0.01.
As previously reported, the Company recorded a $7.6 million pre-tax restructuring charge during the third quarter of 2011 related to lease terminations, fixed asset disposals and other miscellaneous items in connection with the closure of eight Home Choice stores in Illinois and 24 RAC Limited locations within third party grocery stores, all of which had been operated on a test basis, as well as the closure of 26 core rent-to-own stores following the sale of all customer accounts at those locations. For the year ended December 31, 2011, this pre-tax restructuring charge of $7.6 million reduced net earnings per diluted share by approximately $0.08.
Also previously reported, the Company recorded a $4.9 million pre-tax restructuring charge during the second quarter of 2011 related to post-acquisition lease terminations in connection with the December 2010 acquisition of The Rental Store, Inc. For the year ended December 31, 2011, this pre-tax restructuring charge of $4.9 million reduced net earnings per diluted share by approximately $0.05.
Financial Services Charge. As previously reported, the Company recorded a pre-tax impairment charge of $7.3 million during the first quarter of 2011 related primarily to loan write-downs, fixed asset disposals (store reconstruction) and other miscellaneous items in connection with the discontinuation of the financial services business. For the year ended December 31, 2011, this pre-tax impairment charge of $7.3 million reduced net earnings per diluted share by approximately $0.08.
Settlement of Wage & Hour Claims in California. As previously reported, the Company recorded a $2.8 million pre-tax litigation expense during the first quarter of 2011 in connection with the settlement of certain putative class actions pending in California alleging various claims, including violations of California wage and hour laws. For the year ended December 31, 2011, this pre-tax litigation expense of $2.8 million reduced net earnings per diluted share by approximately $0.03.
- - -








Rent-A-Center, Inc. will host a conference call to discuss the fourth quarter results, guidance and other operational matters on Tuesday morning, January 29, 2013, 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 goods 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 3,095 stores in the United States, Canada, Mexico and Puerto Rico, and approximately 965 RAC Acceptance kiosk locations in the United States and Puerto Rico. ColorTyme, Inc., a wholly owned subsidiary of the Company, is a national franchiser of approximately 225 rent-to-own stores operating under the trade name of "ColorTyme." For additional information about the Company, please visit 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. 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 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 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 or lease purchase agreements; the passage of legislation adversely affecting the rent-to-own industry; the Company's failure to comply with applicable statutes or regulations governing its transactions; changes in interest rates; changes in the unemployment rate; economic pressures, such as high fuel costs, affecting the disposable income available to the Company's current and potential customers; the general strength of the economy and other economic conditions affecting consumer preferences and spending; adverse changes in the economic conditions of the industries, countries or markets that the Company serves; 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; information security costs; 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 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, 2011, and its quarterly reports on Form 10-Q for the quarters ended March 31, 2012, June 30, 2012, and September 30, 2012. 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
  
 
Three Months Ended December 31,
 
 
 
2012
 
 
2011
 
 
2011
 
 
 
After
 
 
Before
 
 
After
 
 
 
Significant Items
 
 
Significant Items
 
 
Significant Items
 
 
 
(GAAP
 
 
(Non-GAAP
 
 
(GAAP
 
(In thousands of dollars, except per share data)
 
Earnings)
 
 
Earnings)
 
 
Earnings)
 
Total Revenues
 
$
758,380

 
 
$
737,482

 
 
$
737,482

 
Operating Profit
 
 
79,298

 
 
 
83,214

 
 
 
81,790

(1) 
Net Earnings
 
 
47,459

 
 
 
50,510

 
 
 
49,295

(1) 
Diluted Earnings per Common Share
 
$
0.81

 
 
$
0.85

 
 
$
0.83

(1) 
Adjusted EBITDA
 
$
98,541

 
 
$
101,914

 
 
$
101,914

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation to Adjusted EBITDA:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings Before Income Taxes
 
$
73,021

 
 
$
74,309

 
 
$
72,885

 
Add back:
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring Charge
 
 

 
 
 

 
 
 
1,424

 
Interest Expense, net
 
 
6,277

 
 
 
8,905

 
 
 
8,905

 
Depreciation of Property Assets
 
 
18,617

 
 
 
17,276

 
 
 
17,276

 
Amortization and Write-down of Intangibles
 
 
626

 
 
 
1,424

 
 
 
1,424

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA
 
$
98,541

 
 
$
101,914

 
 
$
101,914

 

  
 
Year Ended December 31,
 
 
 
2012
 
 
2011
 
 
2011
 
 
 
After
 
 
Before
 
 
After
 
 
 
Significant Items
 
 
Significant Items
 
 
Significant Items
 
 
 
(GAAP
 
 
(Non-GAAP
 
 
(GAAP
 
(In thousands of dollars, except per share data)
 
Earnings)
 
 
Earnings)
 
 
Earnings)
 
Total Revenues
 
$
3,082,646

 
 
$
2,882,184

 
 
$
2,882,184

 
Operating Profit
 
 
318,472

 
 
 
317,220

 
 
 
293,157

(1)(2)(3)(4)(5) 
Net Earnings
 
 
183,492

 
 
 
180,069

 
 
 
164,637

(1)(2)(3)(4)(5) 
Diluted Earnings per Common Share
 
$
3.09

 
 
$
2.91

 
 
$
2.66

(1)(2)(3)(4)(5) 
Adjusted EBITDA
 
$
397,722

 
 
$
387,109

 
 
$
387,109

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation to Adjusted EBITDA:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings Before Income Taxes
 
$
287,249

 
 
$
280,613

 
 
$
256,550

 
Add back:
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring Charge
 
 

 
 
 

 
 
 
13,943

 
Impairment Charge
 
 

 
 
 

 
 
 
7,320

 
Litigation Expense
 
 

 
 
 

 
 
 
2,800

 
Interest Expense, net
 
 
31,223

 
 
 
36,607

 
 
 
36,607

 
Depreciation of Property Assets
 
 
73,361

 
 
 
65,214

 
 
 
65,214

 
Amortization and Write-down of Intangibles
 
 
5,889

 
 
 
4,675

 
 
 
4,675

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA
 
$
397,722

 
 
$
387,109

 
 
$
387,109

 
(1) Includes the effects of a $1.4 million pre-tax restructuring charge in the fourth quarter of 2011 in connection with the acquisition in November 2011 of 58 rent-to-own stores. The charge reduced net earnings per diluted share by approximately $0.02 for the fourth quarter of 2011 and by $0.01 for the twelve month period ended December 31, 2011.
(2) Includes the effects of a $7.6 million pre-tax restructuring charge in the third quarter of 2011 related to the closure of eight Home Choice stores in Illinois and 24 RAC Limited locations within third party grocery stores, as well as the closure of 26 core rent-to-own stores following the sale of all customer accounts at these locations. The charge reduced net earnings per diluted share by approximately $0.08 for the twelve month period ended December 31, 2011.





(3) Includes the effects of a $4.9 million pre-tax restructuring charge in the second quarter of 2011 for lease terminations related to The Rental Store, Inc. acquisition. The charge reduced net earnings per diluted share by approximately $0.05 for the twelve month period ended December 31, 2011.
(4) Includes the effects of a $7.3 million pre-tax impairment charge in the first quarter of 2011 related to the discontinuation of the financial services business. The charge reduced net earnings per diluted share by approximately $0.08 for the twelve month period ended December 31, 2011.
(5) Includes the effects of a $2.8 million pre-tax litigation expense in the first quarter of 2011 related to the settlement of wage and hour claims in California. The charge reduced net earnings per diluted share by approximately $0.03 for the twelve month period ended December 31, 2011.

SELECTED BALANCE SHEET HIGHLIGHTS
 
  
 
December 31,
 
 
 
2012
 
 
2011
 
(In thousands of dollars)
 
Unaudited
 
 
 
 
 
Cash and Cash Equivalents
 
$
61,087

 
 
$
88,065

 
Receivables, net
 
 
48,822

 
 
 
48,221

 
Prepaid Expenses and Other Assets
 
 
71,963

 
 
 
69,326

 
Rental Merchandise, net
 
 
 
 
 
 
 
 
On Rent
 
 
821,887

 
 
 
766,425

 
Held for Rent
 
 
198,917

 
 
 
186,768

 
Total Assets
 
$
2,869,105

 
 
$
2,801,378

 
 
 
 
 
 
 
 
 
 
Senior Debt
 
$
387,500

 
 
$
440,675

 
Senior Notes
 
 
300,000

 
 
 
300,000

 
Total Liabilities
 
 
1,399,242

 
 
 
1,442,169

 
Stockholders' Equity
 
$
1,469,863

 
 
$
1,359,209

 







Rent-A-Center, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF EARNINGS

 
Three Months Ended December 31,
 
Year Ended December 31,
 
2012
 
2011
 
2012
 
2011
(In thousands, except per share data)
Unaudited
 
Unaudited
Revenues
 
 
 
 
 
Store
 
 
 
 
 
 
 
Rentals and fees
$
665,054

 
$
646,165

 
$
2,654,081

 
$
2,496,863

Merchandise sales
57,742

 
56,755

 
300,077

 
259,796

Installment sales
19,131

 
19,011

 
68,356

 
68,617

Other
4,111

 
4,296

 
16,391

 
17,925

Franchise
 
 
 
 
 
 
 
Merchandise sales
11,095

 
10,051

 
38,427

 
33,972

Royalty income and fees
1,247

 
1,204

 
5,314

 
5,011

 
758,380

 
737,482

 
3,082,646

 
2,882,184

Cost of revenues
 
 
 
 
 
 
 
Store
 
 
 
 
 
 
 
Cost of rentals and fees
164,136

 
152,753

 
646,090

 
570,493

Cost of merchandise sold
49,181

 
50,595

 
241,219

 
201,854

Cost of installment sales
7,170

 
7,233

 
24,572

 
24,834

Franchise cost of merchandise sold
10,707

 
9,612

 
36,848

 
32,487

 
231,194

 
220,193

 
948,729

 
829,668

Gross profit
527,186

 
517,289

 
2,133,917

 
2,052,516

Operating expenses
 
 
 
 
 
 
 
Salaries and other expenses
412,324

 
395,507

 
1,661,056

 
1,590,009

General and administrative expenses
34,938

 
37,144

 
148,500

 
140,612

Amortization and write-down of intangibles
626

 
1,424

 
5,889

 
4,675

Restructuring charge

 
1,424

 

 
13,943

Impairment charge

 

 

 
7,320

Litigation expense

 

 

 
2,800

 
447,888

 
435,499

 
1,815,445

 
1,759,359

Operating profit
79,298

 
81,790

 
318,472

 
293,157

Interest expense
6,649

 
9,050

 
32,065

 
37,234

Interest income
(372
)
 
(145
)
 
(842
)
 
(627
)
Earnings before income taxes
73,021

 
72,885

 
287,249

 
256,550

Income tax expense
25,562

 
23,590

 
103,757

 
91,913

NET EARNINGS
$
47,459

 
$
49,295

 
$
183,492

 
$
164,637

 
 
 
 
 
 
 
 
Basic weighted average shares
58,356

 
58,917

 
58,913

 
61,188

 
 
 
 
 
 
 
 
Basic earnings per common share
$
0.81

 
$
0.84

 
$
3.11

 
$
2.69

 
 
 
 
 
 
 
 
Diluted weighted average shares
58,793

 
59,611

 
59,405

 
61,889

 
 
 
 
 
 
 
 
Diluted earnings per common share
$
0.81

 
$
0.83

 
$
3.09

 
$
2.66








Rent-A-Center, Inc. and Subsidiaries

SEGMENT INFORMATION HIGHLIGHTS
(In thousands of dollars)
Three Months Ended December 31, 2012
 
Core U.S.
 
RAC Acceptance
 
International
 
ColorTyme
 
Total
Revenue
$
638,650

 
$
94,657

 
$
12,731

 
$
12,342

 
$
758,380

Gross profit
459,762

 
57,083

 
8,706

 
1,635

 
527,186

Operating profit
74,281

 
10,948

 
(6,705
)
 
774

 
79,298

Depreciation of property assets
16,104

 
1,011

 
1,482

 
20

 
18,617

Amortization and write-down of intangibles
497

 
129

 

 

 
626

Capital expenditures
25,591

 
1,693

 
2,066

 

 
29,350

(In thousands of dollars)
Three Months Ended December 31, 2011
 
Core U.S.
 
RAC Acceptance
 
International
 
ColorTyme
 
Total
Revenue
$
657,951

 
$
62,680

 
$
5,596

 
$
11,255

 
$
737,482

Gross profit
475,263

 
36,467

 
3,916

 
1,643

 
517,289

Operating profit
89,267

 
(2,503
)
 
(5,830
)
 
856

 
81,790

Depreciation of property assets
15,616

 
709

 
925

 
26

 
17,276

Amortization and write-down of intangibles
527

 
897

 

 

 
1,424

Capital expenditures
31,385

 
1,519

 
7,827

 

 
40,731

(In thousands of dollars)
Year Ended December 31, 2012
 
Core U.S.
 
RAC Acceptance
 
International
 
ColorTyme
 
Total
Revenue
$
2,655,411

 
$
343,283

 
$
40,211

 
$
43,741

 
$
3,082,646

Gross profit
1,904,586

 
194,607

 
27,831

 
6,893

 
2,133,917

Operating profit
318,496

 
27,972

 
(30,322
)
 
2,326

 
318,472

Depreciation of property assets
63,793

 
3,631

 
5,848

 
89

 
73,361

Amortization and write-down of intangibles
2,103

 
2,819

 
967

 

 
5,889

Capital expenditures
84,680

 
5,275

 
12,498

 

 
102,453

Rental merchandise, net
 
 
 
 
 
 
 
 
 
On rent
597,771

 
209,964

 
14,152

 

 
821,887

Held for rent
189,526

 
2,979

 
6,412

 

 
198,917

Total assets
2,508,370

 
292,070

 
65,954

 
2,711

 
2,869,105

(In thousands of dollars)
Year Ended December 31, 2011
 
Core U.S.
 
RAC Acceptance
 
International
 
ColorTyme
 
Total
Revenue
$
2,631,416

 
$
193,295

 
$
18,490

 
$
38,983

 
$
2,882,184

Gross profit
1,918,781

 
114,228

 
13,011

 
6,496

 
2,052,516

Operating profit
317,473

 
(13,985
)
 
(13,551
)
 
3,220

 
293,157

Depreciation of property assets
60,558

 
2,229

 
2,295

 
132

 
65,214

Amortization and write-down of intangibles
1,092

 
3,583

 

 

 
4,675

Capital expenditures
108,553

 
5,881

 
18,276

 

 
132,710

Rental merchandise, net
 
 
 
 
 
 
 
 
 
On rent
619,189

 
139,340

 
7,896

 

 
766,425

Held for rent
177,625

 
1,274

 
7,869

 

 
186,768

Total assets
2,536,115

 
217,157

 
44,535

 
3,571

 
2,801,378







Rent-A-Center, Inc. and Subsidiaries

LOCATION ACTIVITY
 
Three Months Ended December 31, 2012
 
Core U.S.
 
RAC Acceptance
 
International
 
ColorTyme
 
Total
Locations at beginning of period
2,983

 
882

 
114

 
220

 
4,199

New location openings
12

 
103

 
9

 
7

 
131

Acquired locations remaining open

 

 

 

 

Closed locations
 
 
 
 
 
 
 
 
 
Merged with existing locations
9

 
19

 

 
3

 
31

Sold or closed with no surviving location

 

 
15

 

 
15

Locations at end of period
2,986

 
966

 
108

 
224

 
4,284

Acquired locations closed and accounts merged with existing locations
6

 

 

 

 
6

 
Three Months Ended December 31, 2011
 
Core U.S.
 
RAC Acceptance
 
International
 
ColorTyme
 
Total
Locations at beginning of period
2,958

 
721

 
44

 
213

 
3,936

New location openings
21

 
86

 
36

 
2

 
145

Acquired locations remaining open
21

 

 

 
1

 
22

Closed locations
 
 
 
 
 
 
 
 
 
Merged with existing locations
4

 
54

 

 

 
58

Sold or closed with no surviving location
2

 
3

 

 

 
5

Locations at end of period
2,994

 
750

 
80

 
216

 
4,040

Acquired locations closed and accounts merged with existing locations
42

 

 

 

 
42

 
Year Ended December 31, 2012
 
Core U.S.
 
RAC Acceptance
 
International
 
ColorTyme
 
Total
Locations at beginning of period
2,994

 
750

 
80

 
216

 
4,040

New location openings
35

 
325

 
45

 
18

 
423

Acquired locations remaining open
2

 

 

 

 
2

Closed locations
 
 
 
 
 
 
 
 
 
Merged with existing locations
40

 
95

 
1

 

 
136

Sold or closed with no surviving location
5

 
14

 
16

 
10

 
45

Locations at end of period
2,986

 
966

 
108

 
224

 
4,284

Acquired locations closed and accounts merged with existing locations
20

 

 

 

 
20

 
Year Ended December 31, 2011
 
Core U.S.
 
RAC Acceptance
 
International
 
ColorTyme
 
Total
Locations at beginning of period
2,985

 
384

 
23

 
209

 
3,601

New location openings
52

 
445

 
57

 
10

 
564

Acquired locations remaining open
26

 
5

 

 
3

 
34

Closed locations
 
 
 
 
 
 
 
 
 
Merged with existing locations
28

 
63

 

 

 
91

Sold or closed with no surviving location
41

 
21

 

 
6

 
68

Locations at end of period
2,994

 
750

 
80

 
216

 
4,040

Acquired locations closed and accounts merged with existing locations
71

 

 

 

 
71