Rent-A-Center earnings flat as revenues rise 5.9%

PLANO, Texas — Rent-A-Center, the nation’s biggest rent-to-own operator, said first-quarter profits were essentially even with last year’s first quarter, as revenues rose 5.9%.

The company also reversed a same-store sales decline at its core U.S. stores by registering a 1% gain.

Total revenues for the quarter were $877.6 million, up from $828.5 million in the same quarter last year. Revenues from its core U.S. stores fell 1.1% following the closing of about 150 stores, but revenues at its AcceptanceNow business shot up 32.5%.

Net income totaled $27.299 million or 51 cents per share. That compares with $27.266 million in last year’s opening quarter, which also equals 51 cents per share.

Rent-A-Center said the improvement in its U.S. stores was due largely to higher merchandise sales and revenues from the smartphone category, which was launched last year. Smartphones accounted for 8% of core U.S. store revenues in the quarter, the company said.

“Our multi-year plan to improve the profitability and performance of our core business continues to build momentum on a number of fronts,” said Robert Davis, CEO. “In the first quarter, same-store sales swung to the positive, labor costs are lower, we are underway with the margin-driving flexible labor and supply chain initiatives, and we have taken significant steps to manage smartphone losses.”

Rent-A-Center has about 3,000 company-owned stores in the U.S., Canada, Mexico and Puerto Rico. In addition, there are about 180 franchised stores operating under the Rent-A-Center, ColorTyme and RimTyme names.