Bestway, Inc. Announces Fiscal 2004 Third Quarter Results

Bestway, Inc. Announces Fiscal 2004 Third Quarter Results
Same Store Revenues Increase 2.1%; Seven Consecutive Quarters of Increased Same
Store Revenues 


DALLAS, June 9  /PRNewswire-FirstCall/ -- Bestway, Inc. (NASDAQ:BSTW), today
reported financial results for its fiscal third quarter and nine months ended
April 30, 2004.

For the third quarter of fiscal 2004, revenue increased 2.5% to $9,447,879,
compared with revenue of $9,213,864 for the same period last year. Same store
revenues (revenues earned in stores operated for the entirety of both periods)
increased 2.1% in the quarter.  Net earnings in the third quarter decreased to
$88,010, or $.05 per fully diluted share, compared with $147,106, or $.08 per
fully diluted share, for the third quarter last year. The Company's quarterly
decline in net earnings resulted primarily from costs associated with an
overall increase in salaries and wages and other operating expenses.  We feel
strongly that the investments we are making in our people will allow us to
drive growth and profitability in the future.

For the nine months ended April 30, 2004, revenue increased 6.4% to
$28,071,100, compared with revenue of $26,381,085 for the same period last
year.  Same store revenues increased 6.1% for the year-to-date period.  Net
earnings for the nine month period increased to $311,723, or $.17 per fully
diluted share, compared to net loss of $46,967, or $.03 per fully diluted
share, last year.

"Although I am not happy with a 2.1% same store revenue growth for the quarter,
we did have a 4.0% growth in rental and fee revenue for the same period,"
commented David A. Kraemer, President and Chief Executive Officer. "It should
also be noted that our strategic efforts of increasing our customer base,
focusing on higher revenue-generating merchandise, implementing targeted
marketing campaigns and focusing on developing our people has resulted in a
13.9% same store growth in revenue compared to two years ago.  I feel strongly
that we are capable of further accelerating same store revenue growth.  Using
the foundation we built with the strategic initiatives outlined above, we began
implementation of several additional changes in our business model with
excellent results," Kraemer continued, "these changes were brought about by our
market and customer research over the past several months.  We are encouraged
by the acceptance of these changes to date and look forward to completing
implementation of the programs over the next several months."

Bestway, Inc. owns and operates a total of sixty-nine rent-to-own stores
located in the southeastern United States.  These stores generally offer high
quality brand name merchandise such as home entertainment equipment,
appliances, furniture and computers 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.

This press release and the guidance above contain various "forward-looking
statements" that involve risks and uncertainties.  Forward-looking statements
represent the Company's expectations or beliefs concerning future events.  Any
forward-looking statements made by or on behalf of the Company are subject to
uncertainties and other factors that could cause actual results to differ
materially from such statements.  These uncertainties and other factors
include, but are not limited to, (i) the ability of the Company to open or
acquire additional rental-purchase stores on favorable terms, (ii) the ability
of the Company to improve the performance of such acquired stores and to
integrate such opened or acquired stores into the Company's operations, (iii)
the impact of state and federal laws regulating or otherwise affecting rental-
purchase transactions, (iv) the impact of general economic conditions in the
United States and (v) the impact of terrorist activity, threats of terrorist
activity and responses thereto on the economy in general and the rental-
purchase industry in particular.  Undue reliance should not be placed on any
forward-looking statements made by or on behalf of the Company as such
statements speak only as of the date made.  The Company undertakes no
obligation to publicly update or revise any forward-looking statement, whether
as a result of new information, the occurrence of future events or otherwise.

   BESTWAY, INC.
   SELECTED BALANCE SHEET DATA
                                              (Unaudited)
                                               April 30,         July 31,
                                                 2004              2003

  Cash and cash equivalents                  $   269,150       $   305,869
  Prepaid expenses and other assets              210,819           234,908
  Rental merchandise, net                     14,710,512        13,858,064
  Property and equipment, net                  2,423,464         2,732,798
  Total assets                                19,934,152        20,002,168

  Accounts payable                             1,234,755           751,328
  Debt                                         8,538,402         9,451,299
  Total liabilities                           11,272,884        11,683,375
  Stockholders' Equity                         8,661,268         8,318,793


   BESTWAY, INC.
   CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                             (Unaudited)
                             Three Months Ended       Nine Months Ended
                                  April 30,                April 30,
                              2004        2003         2004        2003
  Revenues:
     Rental and fee
      income              $ 9,220,420 $ 8,864,582  $27,486,235 $25,361,440
     Sales of merchandise     227,459     349,282      584,865   1,019,645
                            9,447,879   9,213,864   28,071,100  26,381,085

  Cost and operating
   expenses:
     Depreciation and
      amortization:
       Rental merchandise   1,822,500   1,743,587    5,444,319   5,092,456
       Other                  297,030     375,044      934,011   1,126,988
     Cost of merchandise
      sold                    197,387     339,328      534,258   1,119,152
     Salaries and wages     2,791,719   2,581,090    8,205,923   7,688,478
     Advertising              427,364     465,942    1,345,968   1,278,865
     Occupancy                635,834     606,458    1,886,787   1,788,640
     Other operating
      expenses              2,991,515   2,696,548    8,775,926   7,849,943
     Interest expense         128,404     168,648      417,614     518,916
     Loss (gain) on sale
      of property and
      equipment                15,085       1,475       26,738      (7,086)
                            9,306,838   8,978,120   27,571,544  26,456,352

  Income (loss) before
   income taxes               141,041     235,744      499,556     (75,267)
     Income tax expense
      (benefit)                53,031      88,638      187,833     (28,300)

  Net income (loss)       $    88,010 $   147,106  $   311,723 $   (46,967)

  Basic net income
   (loss) per share       $      0.05 $      0.09  $      0.19 $     (0.03)

  Diluted net income
   (loss) per share       $      0.05 $      0.08  $      0.17 $     (0.03)

  Weighted average common
     shares outstanding     1,682,122   1,677,572    1,680,628   1,667,283

  Diluted weighted
   average common
   shares outstanding       1,817,171   1,813,456    1,826,630   1,667,283


DATASOURCE: Bestway, Inc.



CONTACT:  Beth A. Durrett, Chief Financial Officer,

 , or David A. Kraemer, President and Chief Executive

Officer,  , both of Bestway, Inc., [phone]

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