Rent-A-Center, Inc. Announces Unaudited Consolidated Financial Results for the Fourth Quarter and Year Ended December 31, 2013; Provides Earnings Guidance for the Year of 2014; Expects to Open New Stores in 2014
January 27, 2014 at 04:36 pm EST
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Rent-A-Center, Inc. announced unaudited consolidated financial results for the fourth quarter and year ended December 31, 2013. For the quarter, the company reported revenues of $769.611 million against $758.380 million a year ago. This 1.5% increase in total Revenue was primarily due to an increase of approximately $38.9 million in the Acceptance Now segment and approximately $4.3 million in the International segment, partially offset by a decrease of approximately $28.7 million in the Core U.S. segment. Operating profit was $34.382 million against $78.943 million a year ago. Earnings before income taxes was $23.683 million against $72.666 million a year ago. Net earnings was $13.064 million or $0.25 per diluted share against $47.209 million or $0.80 per diluted share a year ago. Capital expenditures was $34.606 million against $29.350 million a year ago. Adjusted EBITDA was $63.014 million against $98.186 million a year ago. Net uses of operating cash flow was approximately $39 million during the fourth quarter. For the quarter ended December 31, 2013, same store sales declined 1.1% as compared to the same period in the prior year, primarily attributable to a 5.5% decrease in the Core U.S. segment, partially offset by increases of 26.4% and 25.7% in the Acceptance Now and International segments, respectively.
For the year, the company reported revenues of $3,104.183 million against $3,082.646 million a year ago. This 0.7% increase in total Revenue was primarily due to increases of approximately $158.8 million in the Acceptance Now segment and approximately $18.2 million in the International segment, substantially offset by a decrease of approximately $147.9 million in the Core U.S. segment. For the year ended December 31, 2013, same store sales decreased 2.0% as compared to the prior year, primarily attributable to a 6.4% decrease in the Core U.S. segment, partially offset by increases of 30.1% and 40.6% in the Acceptance Now and International segments, respectively. Operating profit was $246.169 million against $315.671 million a year ago. Earnings before income taxes was $207.356 million against $284.448 million a year ago. Net earnings was $128.238 million or $2.32 per diluted share against $181.703 million or $3.06 per diluted share a year ago. Capital expenditures was $108.367 million against $102.453 million a year ago. year-to-date, the company generated approximately $134.3 million in operating cash flow. Adjusted EBITDA was $334.149 million compared to $394.921 million a year ago.
For the year of 2014, the company expects 4.5% to 7.5% total revenue growth. Approximately 3.0% to 5.5% same store sales growth. EBITDA in the range of $325 to $345 million. Annual effective tax rate of approximately 38.2%. Diluted earnings per share in the range of $2.30 to $2.50, including approximately $0.25 per share dilution related to Mexico. Capital expenditures of approximately $100 million. The company expects free cash flow to approximate a negative $65 million, largely due to the reversal of deferred tax liability.
The company expects to open approximately 100 domestic Acceptance Now kiosks. The company expects to open approximately 30 rent-to-own store locations in Mexico.
Upbound Group, Inc. is a lease-to-own provider with operations in the United States, Puerto Rico, and Mexico. The Company operates through four segments: Acima, Rent-A-Center, Mexico, and Franchising. Acima segment generally offers lease-to-own transactions to consumers who do not qualify for traditional financing. Rent-A-Center Business segment consists of the Company-owned lease-to-own stores in the United States and Puerto Rico. The segment operates 1,839 company owned stores in the United States and Puerto Rico, including 52 retail installment sales stores under the names Get It Now and Home Choice. The segment operates approximately 131 stores in Mexico. The stores in its Franchising segment use its Rent-A-Center, ColorTyme or RimTyme trade names, service marks, trademarks, and logos. The segment franchises approximately 440 stores in 30 states operating under the Rent-A-Center (392 stores), ColorTyme (18 stores) and RimTyme (37 stores) trade names.
Rent-A-Center, Inc. Announces Unaudited Consolidated Financial Results for the Fourth Quarter and Year Ended December 31, 2013; Provides Earnings Guidance for the Year of 2014; Expects to Open New Stores in 2014