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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Rent A Center Inc | NASDAQ:RCII | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 26.78 | 25.50 | 27.09 | 0 | 01:00:00 |
ý
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
|
Delaware
|
|
45-0491516
|
(State or other jurisdiction of
|
|
(I.R.S. Employer
|
incorporation or organization)
|
|
Identification No.)
|
Large accelerated filer
|
ý
|
|
|
Accelerated filer
|
¨
|
|
|
|
|
|
|
Non-accelerated filer
|
¨
|
(Do not check if a smaller reporting company)
|
|
Smaller reporting company
|
¨
|
Emerging Growth Company
|
¨
|
|
|
|
|
|
|
|
|
|
|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
|
¨
|
Class
|
|
Outstanding
|
Common stock, $.01 par value per share
|
|
53,514,721
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
(In thousands, except per share data)
|
|
|
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Store
|
|
|
|
|
|
|
|
||||||||
Rentals and fees
|
$
|
552,580
|
|
|
$
|
552,194
|
|
|
$
|
1,679,697
|
|
|
$
|
1,723,019
|
|
Merchandise sales
|
67,141
|
|
|
67,566
|
|
|
239,487
|
|
|
266,061
|
|
||||
Installment sales
|
15,681
|
|
|
17,276
|
|
|
49,459
|
|
|
51,690
|
|
||||
Other
|
2,140
|
|
|
2,257
|
|
|
6,995
|
|
|
7,428
|
|
||||
Total store revenues
|
637,542
|
|
|
639,293
|
|
|
1,975,638
|
|
|
2,048,198
|
|
||||
Franchise
|
|
|
|
|
|
|
|
||||||||
Merchandise sales
|
4,135
|
|
|
2,676
|
|
|
12,649
|
|
|
9,211
|
|
||||
Royalty income and fees
|
3,265
|
|
|
1,996
|
|
|
10,428
|
|
|
6,177
|
|
||||
Total revenues
|
644,942
|
|
|
643,965
|
|
|
1,998,715
|
|
|
2,063,586
|
|
||||
Cost of revenues
|
|
|
|
|
|
|
|
||||||||
Store
|
|
|
|
|
|
|
|
||||||||
Cost of rentals and fees
|
153,716
|
|
|
153,202
|
|
|
465,852
|
|
|
474,511
|
|
||||
Cost of merchandise sold
|
74,340
|
|
|
70,551
|
|
|
236,255
|
|
|
256,730
|
|
||||
Cost of installment sales
|
5,244
|
|
|
5,207
|
|
|
16,103
|
|
|
16,099
|
|
||||
Total cost of store revenues
|
233,300
|
|
|
228,960
|
|
|
718,210
|
|
|
747,340
|
|
||||
Franchise cost of merchandise sold
|
3,902
|
|
|
2,540
|
|
|
11,901
|
|
|
8,585
|
|
||||
Total cost of revenues
|
237,202
|
|
|
231,500
|
|
|
730,111
|
|
|
755,925
|
|
||||
Gross profit
|
407,740
|
|
|
412,465
|
|
|
1,268,604
|
|
|
1,307,661
|
|
||||
Operating expenses
|
|
|
|
|
|
|
|
||||||||
Store expenses
|
|
|
|
|
|
|
|
||||||||
Labor
|
168,297
|
|
|
179,643
|
|
|
513,543
|
|
|
551,197
|
|
||||
Other store expenses
|
149,326
|
|
|
171,995
|
|
|
492,129
|
|
|
546,485
|
|
||||
General and administrative expenses
|
40,818
|
|
|
43,768
|
|
|
127,480
|
|
|
130,637
|
|
||||
Depreciation, amortization and impairment of intangibles
|
16,946
|
|
|
18,679
|
|
|
52,274
|
|
|
55,928
|
|
||||
Other charges
|
6,721
|
|
|
6,825
|
|
|
40,665
|
|
|
31,580
|
|
||||
Total operating expenses
|
382,108
|
|
|
420,910
|
|
|
1,226,091
|
|
|
1,315,827
|
|
||||
Operating profit (loss)
|
25,632
|
|
|
(8,445
|
)
|
|
42,513
|
|
|
(8,166
|
)
|
||||
Debt refinancing charges
|
—
|
|
|
—
|
|
|
—
|
|
|
1,936
|
|
||||
Interest expense
|
10,496
|
|
|
11,453
|
|
|
32,662
|
|
|
34,346
|
|
||||
Interest income
|
(345
|
)
|
|
(177
|
)
|
|
(756
|
)
|
|
(492
|
)
|
||||
Earnings (loss) before income taxes
|
15,481
|
|
|
(19,721
|
)
|
|
10,607
|
|
|
(43,956
|
)
|
||||
Income tax expense (benefit)
|
2,563
|
|
|
(7,122
|
)
|
|
3,779
|
|
|
(15,785
|
)
|
||||
Net earnings (loss)
|
$
|
12,918
|
|
|
$
|
(12,599
|
)
|
|
$
|
6,828
|
|
|
$
|
(28,171
|
)
|
Basic earnings (loss) per common share
|
$
|
0.24
|
|
|
$
|
(0.24
|
)
|
|
$
|
0.13
|
|
|
$
|
(0.53
|
)
|
Diluted earnings (loss) per common share
|
$
|
0.24
|
|
|
$
|
(0.24
|
)
|
|
$
|
0.13
|
|
|
$
|
(0.53
|
)
|
Cash dividends declared per common share
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.16
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
(In thousands)
|
|
|
|
||||||||||||
Net earnings (loss)
|
$
|
12,918
|
|
|
$
|
(12,599
|
)
|
|
$
|
6,828
|
|
|
$
|
(28,171
|
)
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments, net of tax of $239 and $(97), and $112 and $3,530 for the three and nine months ended 2018 and 2017, respectively
|
900
|
|
|
(181
|
)
|
|
423
|
|
|
6,555
|
|
||||
Total other comprehensive income (loss)
|
900
|
|
|
(181
|
)
|
|
423
|
|
|
6,555
|
|
||||
Comprehensive income (loss)
|
$
|
13,818
|
|
|
$
|
(12,780
|
)
|
|
$
|
7,251
|
|
|
$
|
(21,616
|
)
|
|
September 30, 2018
|
|
December 31, 2017
|
||||
(In thousands, except share and par value data)
|
Unaudited
|
|
|
||||
ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
111,008
|
|
|
$
|
72,968
|
|
Receivables, net of allowance for doubtful accounts of $4,247 and $4,167 in 2018 and 2017, respectively
|
65,197
|
|
|
69,823
|
|
||
Prepaid expenses and other assets
|
67,148
|
|
|
64,577
|
|
||
Rental merchandise, net
|
|
|
|
||||
On rent
|
634,918
|
|
|
701,803
|
|
||
Held for rent
|
141,379
|
|
|
167,188
|
|
||
Merchandise held for installment sale
|
3,362
|
|
|
4,025
|
|
||
Property assets, net of accumulated depreciation of $545,619 and $525,673 in 2018 and 2017, respectively
|
243,121
|
|
|
282,901
|
|
||
Deferred tax asset
|
28,440
|
|
|
—
|
|
||
Goodwill
|
56,845
|
|
|
56,614
|
|
||
Other intangible assets, net
|
675
|
|
|
882
|
|
||
Total assets
|
$
|
1,352,093
|
|
|
$
|
1,420,781
|
|
LIABILITIES
|
|
|
|
||||
Accounts payable – trade
|
$
|
98,063
|
|
|
$
|
90,352
|
|
Accrued liabilities
|
311,277
|
|
|
298,018
|
|
||
Deferred tax liability
|
119,288
|
|
|
87,081
|
|
||
Senior debt, net
|
—
|
|
|
134,125
|
|
||
Senior notes, net
|
539,719
|
|
|
538,762
|
|
||
Total liabilities
|
1,068,347
|
|
|
1,148,338
|
|
||
STOCKHOLDERS’ EQUITY
|
|
|
|
||||
Common stock, $.01 par value; 250,000,000 shares authorized; 109,879,035 and 109,681,559 shares issued in 2018 and 2017, respectively
|
1,099
|
|
|
1,097
|
|
||
Additional paid-in capital
|
836,632
|
|
|
831,271
|
|
||
Retained earnings
|
804,260
|
|
|
798,743
|
|
||
Treasury stock at cost, 56,369,752 shares in 2018 and 2017
|
(1,347,677
|
)
|
|
(1,347,677
|
)
|
||
Accumulated other comprehensive loss
|
(10,568
|
)
|
|
(10,991
|
)
|
||
Total stockholders' equity
|
283,746
|
|
|
272,443
|
|
||
Total liabilities and stockholders' equity
|
$
|
1,352,093
|
|
|
$
|
1,420,781
|
|
|
Nine Months Ended September 30,
|
||||||
|
2018
|
|
2017
|
||||
(In thousands)
|
|
||||||
Cash flows from operating activities
|
|
|
|
||||
Net earnings (loss)
|
$
|
6,828
|
|
|
$
|
(28,171
|
)
|
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities
|
|
|
|
||||
Depreciation of rental merchandise
|
461,484
|
|
|
469,483
|
|
||
Bad debt expense
|
10,372
|
|
|
11,051
|
|
||
Stock-based compensation expense
|
4,493
|
|
|
2,198
|
|
||
Depreciation of property assets
|
51,778
|
|
|
55,156
|
|
||
Loss on sale or disposal of property assets
|
2,529
|
|
|
18
|
|
||
Amortization and impairment of intangibles
|
496
|
|
|
4,667
|
|
||
Amortization of financing fees
|
4,074
|
|
|
3,276
|
|
||
Write-off of debt financing fees
|
—
|
|
|
1,936
|
|
||
Deferred income taxes
|
4,379
|
|
|
(33,940
|
)
|
||
Changes in operating assets and liabilities, net of effects of acquisitions
|
|
|
|
||||
Rental merchandise
|
(375,013
|
)
|
|
(339,278
|
)
|
||
Receivables
|
(5,746
|
)
|
|
(3,560
|
)
|
||
Prepaid expenses and other assets
|
(2,663
|
)
|
|
600
|
|
||
Accounts payable – trade
|
7,711
|
|
|
(20,032
|
)
|
||
Accrued liabilities
|
13,133
|
|
|
12,040
|
|
||
Net cash provided by operating activities
|
183,855
|
|
|
135,444
|
|
||
Cash flows from investing activities
|
|
|
|
||||
Purchase of property assets
|
(22,491
|
)
|
|
(53,528
|
)
|
||
Proceeds from sale of property assets
|
16,474
|
|
|
3,951
|
|
||
Acquisitions of businesses
|
(2,049
|
)
|
|
(2,241
|
)
|
||
Net cash used in investing activities
|
(8,066
|
)
|
|
(51,818
|
)
|
||
Cash flows from financing activities
|
|
|
|
||||
Exercise of stock options
|
1,064
|
|
|
270
|
|
||
Shares withheld for payment of employee tax withholdings
|
(283
|
)
|
|
(225
|
)
|
||
Debt issuance costs
|
—
|
|
|
(5,258
|
)
|
||
Proceeds from debt
|
27,060
|
|
|
216,880
|
|
||
Repayments of debt
|
(166,357
|
)
|
|
(303,498
|
)
|
||
Dividends paid
|
—
|
|
|
(12,811
|
)
|
||
Net cash used in financing activities
|
(138,516
|
)
|
|
(104,642
|
)
|
||
Effect of exchange rate changes on cash
|
767
|
|
|
1,828
|
|
||
Net increase (decrease) in cash and cash equivalents
|
38,040
|
|
|
(19,188
|
)
|
||
Cash and cash equivalents at beginning of period
|
72,968
|
|
|
95,396
|
|
||
Cash and cash equivalents at end of period
|
$
|
111,008
|
|
|
$
|
76,208
|
|
|
January 1, 2018
|
|
Adjustments due to Topic 606
|
|
December 31, 2017
|
||||||
(In thousands)
|
Unaudited
|
||||||||||
LIABILITIES
|
|
|
|
|
|
||||||
Accrued liabilities
|
$
|
299,683
|
|
|
$
|
(1,665
|
)
|
|
$
|
298,018
|
|
Deferred tax liability
|
86,727
|
|
|
354
|
|
|
87,081
|
|
|||
Total liabilities
|
1,149,649
|
|
|
(1,311
|
)
|
|
1,148,338
|
|
|||
STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
||||||
Retained earnings
|
$
|
797,432
|
|
|
$
|
1,311
|
|
|
$
|
798,743
|
|
Total stockholders' equity
|
271,132
|
|
|
1,311
|
|
|
272,443
|
|
Condensed Consolidated Statements of Operations
|
Three Months Ended September 30, 2018
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||
|
As Reported
|
|
Adjustments due to Topic 606
|
|
Balances without Adoption of Topic 606
|
|
As Reported
|
|
Adjustments due to Topic 606
|
|
Balances without Adoption of Topic 606
|
||||||
(In thousands)
|
Unaudited
|
|
Unaudited
|
||||||||||||||
Royalty income and fees
|
3,265
|
|
|
(1,129
|
)
|
|
2,136
|
|
|
10,428
|
|
|
(2,171
|
)
|
|
8,257
|
|
Total revenues
|
644,942
|
|
|
(1,129
|
)
|
|
643,813
|
|
|
1,998,715
|
|
|
(2,171
|
)
|
|
1,996,544
|
|
Gross profit
|
407,740
|
|
|
(1,129
|
)
|
|
406,611
|
|
|
1,268,604
|
|
|
(2,171
|
)
|
|
1,266,433
|
|
Other store expenses
|
149,326
|
|
|
(1,068
|
)
|
|
148,258
|
|
|
492,129
|
|
|
(3,047
|
)
|
|
489,082
|
|
Total operating expenses
|
382,108
|
|
|
(1,068
|
)
|
|
381,040
|
|
|
1,226,091
|
|
|
(3,047
|
)
|
|
1,223,044
|
|
Operating profit
|
25,632
|
|
|
(61
|
)
|
|
25,571
|
|
|
42,513
|
|
|
876
|
|
|
43,389
|
|
Earnings before income taxes
|
15,481
|
|
|
(61
|
)
|
|
15,420
|
|
|
10,607
|
|
|
876
|
|
|
11,483
|
|
Income tax expense
|
2,563
|
|
|
(10
|
)
|
|
2,553
|
|
|
3,779
|
|
|
53
|
|
|
3,832
|
|
Net earnings
|
12,918
|
|
|
(51
|
)
|
|
12,867
|
|
|
6,828
|
|
|
823
|
|
|
7,651
|
|
Condensed Consolidated Balance Sheets
|
September 30, 2018
|
||||||||||
|
As Reported
|
|
Adjustments due to Topic 606
|
|
Balances without Adoption of Topic 606
|
||||||
(In thousands)
|
Unaudited
|
||||||||||
LIABILITIES
|
|
|
|
|
|
||||||
Accrued liabilities
|
$
|
311,277
|
|
|
$
|
(2,541
|
)
|
|
$
|
308,736
|
|
Deferred tax liability
|
119,288
|
|
|
407
|
|
|
119,695
|
|
|||
Total liabilities
|
1,068,347
|
|
|
(2,134
|
)
|
|
1,066,213
|
|
|||
STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
||||||
Retained earnings
|
$
|
804,260
|
|
|
$
|
2,134
|
|
|
$
|
806,394
|
|
Total stockholders' equity
|
283,746
|
|
|
2,134
|
|
|
285,880
|
|
|
Three Months Ended September 30, 2018
|
||||||||||||||||||
|
Core U.S.
|
|
Acceptance Now
|
|
Mexico
|
|
Franchising
|
|
Consolidated
|
||||||||||
(In thousands)
|
Unaudited
|
||||||||||||||||||
Store
|
|
|
|
|
|
|
|
|
|
||||||||||
Rentals and fees
|
$
|
403,483
|
|
|
$
|
137,061
|
|
|
$
|
12,036
|
|
|
$
|
—
|
|
|
$
|
552,580
|
|
Merchandise sales
|
30,135
|
|
|
36,264
|
|
|
742
|
|
|
—
|
|
|
67,141
|
|
|||||
Installment sales
|
15,681
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,681
|
|
|||||
Other
|
2,021
|
|
|
113
|
|
|
6
|
|
|
—
|
|
|
2,140
|
|
|||||
Total store revenues
|
451,320
|
|
|
173,438
|
|
|
12,784
|
|
|
—
|
|
|
637,542
|
|
|||||
Franchise
|
|
|
|
|
|
|
|
|
|
||||||||||
Merchandise sales
|
—
|
|
|
—
|
|
|
—
|
|
|
4,135
|
|
|
4,135
|
|
|||||
Royalty income and fees
|
—
|
|
|
—
|
|
|
—
|
|
|
3,265
|
|
|
3,265
|
|
|||||
Total revenues
|
$
|
451,320
|
|
|
$
|
173,438
|
|
|
$
|
12,784
|
|
|
$
|
7,400
|
|
|
$
|
644,942
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||
|
Core U.S.
|
|
Acceptance Now
|
|
Mexico
|
|
Franchising
|
|
Consolidated
|
||||||||||
(In thousands)
|
Unaudited
|
||||||||||||||||||
Store
|
|
|
|
|
|
|
|
|
|
||||||||||
Rentals and fees
|
$
|
1,226,233
|
|
|
$
|
418,684
|
|
|
$
|
34,780
|
|
|
$
|
—
|
|
|
$
|
1,679,697
|
|
Merchandise sales
|
106,828
|
|
|
130,347
|
|
|
2,312
|
|
|
—
|
|
|
239,487
|
|
|||||
Installment sales
|
49,459
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
49,459
|
|
|||||
Other
|
6,561
|
|
|
404
|
|
|
30
|
|
|
—
|
|
|
6,995
|
|
|||||
Total store revenues
|
1,389,081
|
|
|
549,435
|
|
|
37,122
|
|
|
—
|
|
|
1,975,638
|
|
|||||
Franchise
|
|
|
|
|
|
|
|
|
|
||||||||||
Merchandise sales
|
—
|
|
|
—
|
|
|
—
|
|
|
12,649
|
|
|
12,649
|
|
|||||
Royalty income and fees
|
—
|
|
|
—
|
|
|
—
|
|
|
10,428
|
|
|
10,428
|
|
|||||
Total revenues
|
$
|
1,389,081
|
|
|
$
|
549,435
|
|
|
$
|
37,122
|
|
|
$
|
23,077
|
|
|
$
|
1,998,715
|
|
(In thousands)
|
September 30, 2018
|
|
December 31, 2017
|
||||
Installment sales receivable
|
$
|
51,477
|
|
|
$
|
55,516
|
|
Trade and notes receivables
|
17,967
|
|
|
18,474
|
|
||
Total receivables
|
69,444
|
|
|
73,990
|
|
||
Less allowance for doubtful accounts
|
(4,247
|
)
|
|
(4,167
|
)
|
||
Total receivables, net of allowance for doubtful accounts
|
$
|
65,197
|
|
|
$
|
69,823
|
|
(In thousands)
|
September 30, 2018
|
|
December 31, 2017
|
||||
Beginning allowance for doubtful accounts
|
$
|
4,167
|
|
|
$
|
3,593
|
|
Bad debt expense
|
10,372
|
|
|
15,702
|
|
||
Accounts written off
|
(10,740
|
)
|
|
(15,791
|
)
|
||
Recoveries
|
448
|
|
|
663
|
|
||
Ending allowance for doubtful accounts
|
$
|
4,247
|
|
|
$
|
4,167
|
|
•
|
incur additional debt;
|
•
|
pay cash dividends in excess of $15 million annually when the Consolidated Total Leverage Ratio is greater than 3:75:1;
|
•
|
incur liens or other encumbrances;
|
•
|
merge, consolidate or sell substantially all property or business;
|
•
|
sell, lease or otherwise transfer assets (if not in the ordinary course of business, limited in any fiscal year to an amount equal to 5% of Consolidated Total Assets as of the last day of the immediately preceding fiscal year);
|
•
|
make investments or acquisitions (unless they meet financial tests and other requirements); or
|
•
|
enter into an unrelated line of business;
|
•
|
guarantee obligations of Foreign Subsidiaries in excess of $10 million at any time; and
|
•
|
exceed an aggregate outstanding amount of $10 million in indebtedness, including Capital Lease Obligations, mortgage financings and purchase money obligations that are secured by Liens permitted under the Credit Agreement.
|
|
Required Ratio
|
|
Actual Ratio
|
||
Consolidated Fixed Charge Coverage Ratio
|
No less than
|
|
1.10:1
|
|
2.03:1
|
•
|
incur additional debt;
|
•
|
sell assets or our subsidiaries;
|
•
|
grant liens to third parties;
|
•
|
pay cash dividends or repurchase stock when total leverage is greater than
2.50:1
(subject to an exception for cash dividends in an amount not to exceed
$20 million
annually); and
|
•
|
engage in a merger or sell substantially all of our assets.
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
(in thousands)
|
Carrying Value
|
|
Fair Value
|
|
Difference
|
|
Carrying Value
|
|
Fair Value
|
|
Difference
|
||||||||||||
6.625% senior notes
|
$
|
292,740
|
|
|
$
|
291,276
|
|
|
$
|
(1,464
|
)
|
|
$
|
292,740
|
|
|
$
|
278,835
|
|
|
$
|
(13,905
|
)
|
4.75% senior notes
|
250,000
|
|
|
252,950
|
|
|
2,950
|
|
|
250,000
|
|
|
237,500
|
|
|
(12,500
|
)
|
||||||
Total senior notes
|
$
|
542,740
|
|
|
$
|
544,226
|
|
|
$
|
1,486
|
|
|
$
|
542,740
|
|
|
$
|
516,335
|
|
|
$
|
(26,405
|
)
|
(in thousands)
|
Accrued Charges at December 31, 2017
|
|
Charges & Adjustments
|
|
Payments
|
|
Accrued Charges at September 30, 2018
|
||||||||
Cash charges:
|
|
|
|
|
|
|
|
||||||||
Labor reduction costs
|
$
|
1,674
|
|
|
$
|
7,168
|
|
|
$
|
(6,411
|
)
|
|
$
|
2,431
|
|
Lease obligation costs
|
2,105
|
|
|
9,303
|
|
|
(5,564
|
)
|
|
5,844
|
|
||||
Contract termination costs
|
—
|
|
|
6,750
|
|
|
(6,750
|
)
|
|
—
|
|
||||
Other miscellaneous
|
—
|
|
|
2,165
|
|
|
(2,165
|
)
|
|
—
|
|
||||
Total cash charges
|
$
|
3,779
|
|
|
25,386
|
|
|
$
|
(20,890
|
)
|
|
$
|
8,275
|
|
|
Non-cash charges:
|
|
|
|
|
|
|
|
||||||||
Rental merchandise recoveries
|
|
|
(484
|
)
|
|
|
|
|
|||||||
Asset impairments
|
|
|
3,771
|
|
|
|
|
|
|||||||
Other
(1)
|
|
|
11,992
|
|
|
|
|
|
|||||||
Total other charges
|
|
|
$
|
40,665
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(in thousands)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Core U.S.
|
$
|
451,320
|
|
|
$
|
442,763
|
|
|
$
|
1,389,081
|
|
|
$
|
1,390,687
|
|
Acceptance Now
|
173,438
|
|
|
184,293
|
|
|
549,435
|
|
|
622,160
|
|
||||
Mexico
|
12,784
|
|
|
12,237
|
|
|
37,122
|
|
|
35,351
|
|
||||
Franchising
|
7,400
|
|
|
4,672
|
|
|
23,077
|
|
|
15,388
|
|
||||
Total revenues
|
$
|
644,942
|
|
|
$
|
643,965
|
|
|
$
|
1,998,715
|
|
|
$
|
2,063,586
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(in thousands)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Gross profit
|
|
|
|
|
|
|
|
||||||||
Core U.S.
|
$
|
313,771
|
|
|
$
|
309,779
|
|
|
$
|
975,231
|
|
|
$
|
965,739
|
|
Acceptance Now
|
81,586
|
|
|
92,088
|
|
|
256,441
|
|
|
310,451
|
|
||||
Mexico
|
8,885
|
|
|
8,466
|
|
|
25,756
|
|
|
24,668
|
|
||||
Franchising
|
3,498
|
|
|
2,132
|
|
|
11,176
|
|
|
6,803
|
|
||||
Total gross profit
|
$
|
407,740
|
|
|
$
|
412,465
|
|
|
$
|
1,268,604
|
|
|
$
|
1,307,661
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(in thousands)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Operating profit (loss)
|
|
|
|
|
|
|
|
||||||||
Core U.S.
|
$
|
43,221
|
|
|
$
|
23,859
|
|
|
$
|
115,135
|
|
|
$
|
79,241
|
|
Acceptance Now
|
26,278
|
|
|
10,379
|
|
|
70,865
|
|
|
49,595
|
|
||||
Mexico
|
922
|
|
|
(242
|
)
|
|
2,306
|
|
|
(122
|
)
|
||||
Franchising
|
522
|
|
|
1,032
|
|
|
3,687
|
|
|
3,565
|
|
||||
Total segments
|
70,943
|
|
|
35,028
|
|
|
191,993
|
|
|
132,279
|
|
||||
Corporate
|
(45,311
|
)
|
|
(43,473
|
)
|
|
(149,480
|
)
|
|
(140,445
|
)
|
||||
Total operating profit (loss)
|
$
|
25,632
|
|
|
$
|
(8,445
|
)
|
|
$
|
42,513
|
|
|
$
|
(8,166
|
)
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(in thousands)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Depreciation, amortization and impairment of intangibles
|
|
|
|
|
|
|
|
||||||||
Core U.S.
|
$
|
6,216
|
|
|
$
|
7,725
|
|
|
$
|
19,482
|
|
|
$
|
23,715
|
|
Acceptance Now
|
421
|
|
|
568
|
|
|
1,288
|
|
|
1,983
|
|
||||
Mexico
|
222
|
|
|
496
|
|
|
839
|
|
|
1,549
|
|
||||
Franchising
|
45
|
|
|
45
|
|
|
133
|
|
|
133
|
|
||||
Total segments
|
6,904
|
|
|
8,834
|
|
|
21,742
|
|
|
27,380
|
|
||||
Corporate
|
10,042
|
|
|
9,845
|
|
|
30,532
|
|
|
28,548
|
|
||||
Total depreciation, amortization and impairment of intangibles
|
$
|
16,946
|
|
|
$
|
18,679
|
|
|
$
|
52,274
|
|
|
$
|
55,928
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(in thousands)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Capital expenditures
|
|
|
|
|
|
|
|
||||||||
Core U.S.
|
$
|
3,586
|
|
|
$
|
6,625
|
|
|
$
|
12,801
|
|
|
$
|
21,333
|
|
Acceptance Now
|
76
|
|
|
430
|
|
|
156
|
|
|
1,525
|
|
||||
Mexico
|
113
|
|
|
56
|
|
|
151
|
|
|
103
|
|
||||
Total segments
|
3,775
|
|
|
7,111
|
|
|
13,108
|
|
|
22,961
|
|
||||
Corporate
|
3,021
|
|
|
6,258
|
|
|
9,383
|
|
|
30,567
|
|
||||
Total capital expenditures
|
$
|
6,796
|
|
|
$
|
13,369
|
|
|
$
|
22,491
|
|
|
$
|
53,528
|
|
(in thousands)
|
September 30, 2018
|
|
December 31, 2017
|
||||
On rent rental merchandise, net
|
|
|
|
||||
Core U.S.
|
$
|
378,221
|
|
|
$
|
408,993
|
|
Acceptance Now
|
241,044
|
|
|
278,443
|
|
||
Mexico
|
15,653
|
|
|
14,367
|
|
||
Total on rent rental merchandise, net
|
$
|
634,918
|
|
|
$
|
701,803
|
|
(in thousands)
|
September 30, 2018
|
|
December 31, 2017
|
||||
Held for rent rental merchandise, net
|
|
|
|
||||
Core U.S.
|
$
|
134,759
|
|
|
$
|
156,039
|
|
Acceptance Now
|
1,290
|
|
|
4,940
|
|
||
Mexico
|
5,330
|
|
|
6,209
|
|
||
Total held for rent rental merchandise, net
|
$
|
141,379
|
|
|
$
|
167,188
|
|
(in thousands)
|
September 30, 2018
|
|
December 31, 2017
|
||||
Assets by segment
|
|
|
|
||||
Core U.S.
|
$
|
709,074
|
|
|
$
|
776,296
|
|
Acceptance Now
|
306,553
|
|
|
350,970
|
|
||
Mexico
|
30,747
|
|
|
33,529
|
|
||
Franchising
|
3,899
|
|
|
3,802
|
|
||
Total segments
|
1,050,273
|
|
|
1,164,597
|
|
||
Corporate
|
301,820
|
|
|
256,184
|
|
||
Total assets
|
$
|
1,352,093
|
|
|
$
|
1,420,781
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(in thousands, except per share data)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net earnings (loss)
|
$
|
12,918
|
|
|
$
|
(12,599
|
)
|
|
$
|
6,828
|
|
|
$
|
(28,171
|
)
|
Denominator:
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares outstanding
|
53,508
|
|
|
53,306
|
|
|
53,455
|
|
|
53,272
|
|
||||
Effect of dilutive stock awards
(1)
|
1,404
|
|
|
—
|
|
|
946
|
|
|
—
|
|
||||
Weighted-average dilutive shares
|
54,912
|
|
|
53,306
|
|
|
54,401
|
|
|
53,272
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Basic earnings (loss) per common share
|
$
|
0.24
|
|
|
$
|
(0.24
|
)
|
|
$
|
0.13
|
|
|
$
|
(0.53
|
)
|
Diluted earnings (loss) per common share
|
$
|
0.24
|
|
|
$
|
(0.24
|
)
|
|
$
|
0.13
|
|
|
$
|
(0.53
|
)
|
Anti-dilutive securities excluded from diluted loss per common share:
|
|
|
|
|
|
|
|
||||||||
Anti-dilutive restricted share units
|
—
|
|
|
635
|
|
|
—
|
|
|
635
|
|
||||
Anti-dilutive performance share units
|
211
|
|
|
784
|
|
|
211
|
|
|
784
|
|
||||
Anti-dilutive stock options
|
1,417
|
|
|
3,103
|
|
|
1,672
|
|
|
3,103
|
|
(1)
|
There was no dilutive effect to the loss per common share for the three and nine months ended September 30, 2017 due to the net loss incurred for respective periods.
|
•
|
the general strength of the economy and other economic conditions affecting consumer preferences and spending;
|
•
|
factors affecting the disposable income available to our current and potential customers;
|
•
|
changes in the unemployment rate;
|
•
|
the occurrence of any event, change or other circumstances that could give rise to the termination of the Vintage Merger Agreement;
|
•
|
the inability to complete the Vintage Merger due to failure to satisfy conditions necessary for completion of the merger, including that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of the transaction;
|
•
|
risks regarding the failure of Vintage to obtain the necessary debt and/or equity financing to complete the Vintage Merger;
|
•
|
risks relating to operations of the business and our financial results if the Vintage Merger Agreement is terminated;
|
•
|
risks related to disruption of management’s attention from our ongoing business operations due to the pending Vintage Merger;
|
•
|
the effect of the pendency or consummation of the Vintage Merger on our relationships with third parties, including our employees, franchisees, customers, suppliers, business partners and vendors, which make it more difficult to maintain business and operations relationships, and negatively impact the operating results of the four core business segments and business generally;
|
•
|
the risk that certain approvals or consents will not be received in a timely manner or that the Vintage Merger will not be consummated in a timely manner;
|
•
|
capital market conditions, including availability of funding sources for us and Vintage;
|
•
|
changes in our credit ratings;
|
•
|
the risk of stockholder litigation in connection with the Vintage Merger, and the impact of any adverse legal judgments, fines, penalties, injunctions or settlements thereof;
|
•
|
difficulties encountered in improving the financial and operational performance of our business segments;
|
•
|
our ability to refinance our Revolving Facility expiring in early 2019 on favorable terms, if at all;
|
•
|
risks associated with pricing changes and strategies being deployed in our businesses;
|
•
|
our ability to continue to realize benefits from our initiatives regarding cost-savings and other EBITDA enhancements, efficiencies and working capital improvements;
|
•
|
our ability to continue to effectively operate and execute our strategic initiatives;
|
•
|
our ability to execute our franchise strategy;
|
•
|
failure to manage our store labor and other store expenses;
|
•
|
disruptions caused by the operation of our store information management system;
|
•
|
our transition to more-readily scalable, "cloud-based" solutions;
|
•
|
our ability to develop and successfully implement digital or E-commerce capabilities, including mobile applications;
|
•
|
disruptions in our supply chain;
|
•
|
limitations of, or disruptions in, our distribution network, and the impact, effects and results of the changes we have made and are making to our distribution methods;
|
•
|
rapid inflation or deflation in the prices of our products;
|
•
|
our available cash flow;
|
•
|
our ability to identify and successfully market products and services that appeal to our customer demographic;
|
•
|
consumer preferences and perceptions of our brands;
|
•
|
our ability to execute and the effectiveness of a store consolidation, including our ability to retain the revenue from customer accounts merged into another store location as a result of a store consolidation;
|
•
|
our ability to retain the revenue associated with acquired customer accounts and enhance the performance of acquired stores;
|
•
|
our ability to enter into new and collect on our rental or lease purchase agreements;
|
•
|
the passage of legislation adversely affecting the Rent-to-Own industry;
|
•
|
our compliance with applicable statutes or regulations governing our transactions;
|
•
|
changes in interest rates;
|
•
|
changes in tariff policies;
|
•
|
adverse changes in the economic conditions of the industries, countries or markets that we serve;
|
•
|
information technology and data security costs;
|
•
|
the impact of any breaches in data security or other disturbances to our information technology and other networks and our ability to protect the integrity and security of individually identifiable data of our customers and employees;
|
•
|
changes in estimates relating to self-insurance liabilities and income tax and litigation reserves;
|
•
|
changes in our effective tax rate;
|
•
|
fluctuations in foreign currency exchange rates;
|
•
|
our ability to maintain an effective system of internal controls;
|
•
|
the resolution of our litigation; and
|
•
|
the other risks detailed from time to time in our reports furnished or filed with the Securities and Exchange Commission.
|
•
|
We have implemented significant cost savings opportunities across the business in the areas of overhead, supply chain and other store expenses.
|
•
|
The updated value proposition in the Core U.S. is intended to improve traffic trends with a balanced approach of competitively pricing elastic categories while capturing more margin in inelastic categories.
|
•
|
Within Acceptance NOW, the value proposition centers around improved return on investment through a shorter payback period and higher ownership levels.
|
•
|
Refranchising certain brick and mortar locations will enable us to maintain and grow our presence while using proceeds to pay down debt.
|
|
Three Months Ended
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
||||||||||||||||||
|
September 30,
|
|
Change
|
|
September 30,
|
|
Change
|
||||||||||||||||||||||
(dollar amounts in thousands)
|
2018
|
|
2017
|
|
$
|
|
%
|
|
2018
|
|
2017
|
|
$
|
|
%
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Store
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Rentals and fees
|
$
|
552,580
|
|
|
$
|
552,194
|
|
|
$
|
386
|
|
|
0.1
|
%
|
|
$
|
1,679,697
|
|
|
$
|
1,723,019
|
|
|
$
|
(43,322
|
)
|
|
(2.5
|
)%
|
Merchandise sales
|
67,141
|
|
|
67,566
|
|
|
(425
|
)
|
|
(0.6
|
)%
|
|
239,487
|
|
|
266,061
|
|
|
(26,574
|
)
|
|
(10.0
|
)%
|
||||||
Installment sales
|
15,681
|
|
|
17,276
|
|
|
(1,595
|
)
|
|
(9.2
|
)%
|
|
49,459
|
|
|
51,690
|
|
|
(2,231
|
)
|
|
(4.3
|
)%
|
||||||
Other
|
2,140
|
|
|
2,257
|
|
|
(117
|
)
|
|
(5.2
|
)%
|
|
6,995
|
|
|
7,428
|
|
|
(433
|
)
|
|
(5.8
|
)%
|
||||||
Total store revenue
|
637,542
|
|
|
639,293
|
|
|
(1,751
|
)
|
|
(0.3
|
)%
|
|
1,975,638
|
|
|
2,048,198
|
|
|
(72,560
|
)
|
|
(3.5
|
)%
|
||||||
Franchise
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Merchandise sales
|
4,135
|
|
|
2,676
|
|
|
1,459
|
|
|
54.5
|
%
|
|
12,649
|
|
|
9,211
|
|
|
3,438
|
|
|
37.3
|
%
|
||||||
Royalty income and fees
|
3,265
|
|
|
1,996
|
|
|
1,269
|
|
|
63.6
|
%
|
|
10,428
|
|
|
6,177
|
|
|
4,251
|
|
|
68.8
|
%
|
||||||
Total revenues
|
644,942
|
|
|
643,965
|
|
|
977
|
|
|
0.2
|
%
|
|
1,998,715
|
|
|
2,063,586
|
|
|
(64,871
|
)
|
|
(3.1
|
)%
|
||||||
Cost of revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Store
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Cost of rentals and fees
|
153,716
|
|
|
153,202
|
|
|
514
|
|
|
0.3
|
%
|
|
465,852
|
|
|
474,511
|
|
|
(8,659
|
)
|
|
(1.8
|
)%
|
||||||
Cost of merchandise sold
|
74,340
|
|
|
70,551
|
|
|
3,789
|
|
|
5.4
|
%
|
|
236,255
|
|
|
256,730
|
|
|
(20,475
|
)
|
|
(8.0
|
)%
|
||||||
Cost of installment sales
|
5,244
|
|
|
5,207
|
|
|
37
|
|
|
0.7
|
%
|
|
16,103
|
|
|
16,099
|
|
|
4
|
|
|
—
|
%
|
||||||
Total cost of store revenues
|
233,300
|
|
|
228,960
|
|
|
4,340
|
|
|
1.9
|
%
|
|
718,210
|
|
|
747,340
|
|
|
(29,130
|
)
|
|
(3.9
|
)%
|
||||||
Franchise cost of merchandise sold
|
3,902
|
|
|
2,540
|
|
|
1,362
|
|
|
53.6
|
%
|
|
11,901
|
|
|
8,585
|
|
|
3,316
|
|
|
38.6
|
%
|
||||||
Total cost of revenues
|
237,202
|
|
|
231,500
|
|
|
5,702
|
|
|
2.5
|
%
|
|
730,111
|
|
|
755,925
|
|
|
(25,814
|
)
|
|
(3.4
|
)%
|
||||||
Gross profit
|
407,740
|
|
|
412,465
|
|
|
(4,725
|
)
|
|
(1.1
|
)%
|
|
1,268,604
|
|
|
1,307,661
|
|
|
(39,057
|
)
|
|
(3.0
|
)%
|
||||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Store expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Labor
|
168,297
|
|
|
179,643
|
|
|
(11,346
|
)
|
|
(6.3
|
)%
|
|
513,543
|
|
|
551,197
|
|
|
(37,654
|
)
|
|
(6.8
|
)%
|
||||||
Other store expenses
|
149,326
|
|
|
171,995
|
|
|
(22,669
|
)
|
|
(13.2
|
)%
|
|
492,129
|
|
|
546,485
|
|
|
(54,356
|
)
|
|
(9.9
|
)%
|
||||||
General and administrative expenses
|
40,818
|
|
|
43,768
|
|
|
(2,950
|
)
|
|
(6.7
|
)%
|
|
127,480
|
|
|
130,637
|
|
|
(3,157
|
)
|
|
(2.4
|
)%
|
||||||
Depreciation, amortization and impairment of intangibles
|
16,946
|
|
|
18,679
|
|
|
(1,733
|
)
|
|
(9.3
|
)%
|
|
52,274
|
|
|
55,928
|
|
|
(3,654
|
)
|
|
(6.5
|
)%
|
||||||
Other charges
|
6,721
|
|
|
6,825
|
|
|
(104
|
)
|
|
(1.5
|
)%
|
|
40,665
|
|
|
31,580
|
|
|
9,085
|
|
|
28.8
|
%
|
||||||
Total operating expenses
|
382,108
|
|
|
420,910
|
|
|
(38,802
|
)
|
|
(9.2
|
)%
|
|
1,226,091
|
|
|
1,315,827
|
|
|
(89,736
|
)
|
|
(6.8
|
)%
|
||||||
Operating profit (loss)
|
25,632
|
|
|
(8,445
|
)
|
|
34,077
|
|
|
403.5
|
%
|
|
42,513
|
|
|
(8,166
|
)
|
|
50,679
|
|
|
620.6
|
%
|
||||||
Debt refinancing charges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
1,936
|
|
|
(1,936
|
)
|
|
(100.0
|
)%
|
||||||
Interest, net
|
10,151
|
|
|
11,276
|
|
|
(1,125
|
)
|
|
(10.0
|
)%
|
|
31,906
|
|
|
33,854
|
|
|
(1,948
|
)
|
|
(5.8
|
)%
|
||||||
Earnings (loss) before income taxes
|
15,481
|
|
|
(19,721
|
)
|
|
35,202
|
|
|
178.5
|
%
|
|
10,607
|
|
|
(43,956
|
)
|
|
54,563
|
|
|
124.1
|
%
|
||||||
Income tax expense (benefit)
|
2,563
|
|
|
(7,122
|
)
|
|
9,685
|
|
|
136.0
|
%
|
|
3,779
|
|
|
(15,785
|
)
|
|
19,564
|
|
|
123.9
|
%
|
||||||
Net earnings (loss)
|
$
|
12,918
|
|
|
$
|
(12,599
|
)
|
|
$
|
25,517
|
|
|
202.5
|
%
|
|
$
|
6,828
|
|
|
$
|
(28,171
|
)
|
|
$
|
34,999
|
|
|
124.2
|
%
|
|
Three Months Ended
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
||||||||||||||||||
|
September 30,
|
|
Change
|
|
September 30,
|
|
Change
|
||||||||||||||||||||||
(dollar amounts in thousands)
|
2018
|
|
2017
|
|
$
|
|
%
|
|
2018
|
|
2017
|
|
$
|
|
%
|
||||||||||||||
Revenues
|
$
|
451,320
|
|
|
$
|
442,763
|
|
|
$
|
8,557
|
|
|
1.9
|
%
|
|
$
|
1,389,081
|
|
|
$
|
1,390,687
|
|
|
$
|
(1,606
|
)
|
|
(0.1
|
)%
|
Gross profit
|
313,771
|
|
|
309,779
|
|
|
3,992
|
|
|
1.3
|
%
|
|
975,231
|
|
|
965,739
|
|
|
9,492
|
|
|
1.0
|
%
|
||||||
Operating profit
|
43,221
|
|
|
23,859
|
|
|
19,362
|
|
|
81.2
|
%
|
|
115,135
|
|
|
79,241
|
|
|
35,894
|
|
|
45.3
|
%
|
||||||
Change in same store revenue
|
|
|
|
|
|
|
5.2
|
%
|
|
|
|
|
|
|
|
2.9
|
%
|
||||||||||||
Stores in same store revenue calculation
|
|
|
|
|
|
|
1,665
|
|
|
|
|
|
|
|
1,897
|
|
Three Months Ended
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
||||||||||||||||||
|
September 30,
|
|
Change
|
|
September 30,
|
|
Change
|
||||||||||||||||||||||
(dollar amounts in thousands)
|
2018
|
|
2017
|
|
$
|
|
%
|
|
2018
|
|
2017
|
|
$
|
|
%
|
||||||||||||||
Revenues
|
$
|
173,438
|
|
|
$
|
184,293
|
|
|
$
|
(10,855
|
)
|
|
(5.9
|
)%
|
|
$
|
549,435
|
|
|
$
|
622,160
|
|
|
$
|
(72,725
|
)
|
|
(11.7
|
)%
|
Gross profit
|
81,586
|
|
|
92,088
|
|
|
(10,502
|
)
|
|
(11.4
|
)%
|
|
256,441
|
|
|
310,451
|
|
|
(54,010
|
)
|
|
(17.4
|
)%
|
||||||
Operating profit
|
26,278
|
|
|
10,379
|
|
|
15,899
|
|
|
153.2
|
%
|
|
70,865
|
|
|
49,595
|
|
|
21,270
|
|
|
42.9
|
%
|
||||||
Change in same store revenue
|
|
|
|
|
|
|
6.7
|
%
|
|
|
|
|
|
|
|
4.6
|
%
|
||||||||||||
Stores in same store revenue calculation
|
|
|
|
|
|
|
489
|
|
|
|
|
|
|
|
|
539
|
|
Three Months Ended
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
||||||||||||||||||
|
September 30,
|
|
Change
|
|
September 30,
|
|
Change
|
||||||||||||||||||||||
(dollar amounts in thousands)
|
2018
|
|
2017
|
|
$
|
|
%
|
|
2018
|
|
2017
|
|
$
|
|
%
|
||||||||||||||
Revenues
|
$
|
12,784
|
|
|
$
|
12,237
|
|
|
$
|
547
|
|
|
4.5
|
%
|
|
$
|
37,122
|
|
|
$
|
35,351
|
|
|
$
|
1,771
|
|
|
5.0
|
%
|
Gross profit
|
8,885
|
|
|
8,466
|
|
|
419
|
|
|
4.9
|
%
|
|
25,756
|
|
|
24,668
|
|
|
1,088
|
|
|
4.4
|
%
|
||||||
Operating profit
|
922
|
|
|
(242
|
)
|
|
1,164
|
|
|
481.0
|
%
|
|
2,306
|
|
|
(122
|
)
|
|
2,428
|
|
|
1,990.2
|
%
|
||||||
Change in same store revenue
|
|
|
|
|
|
|
12.8
|
%
|
|
|
|
|
|
|
|
6.8
|
%
|
||||||||||||
Stores in same store revenue calculation
|
|
|
|
|
|
|
108
|
|
|
|
|
|
|
|
|
108
|
|
|
Three Months Ended
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
||||||||||||||||||
|
September 30,
|
|
Change
|
|
September 30,
|
|
Change
|
||||||||||||||||||||||
(dollar amounts in thousands)
|
2018
|
|
2017
|
|
$
|
|
%
|
|
2018
|
|
2017
|
|
$
|
|
%
|
||||||||||||||
Revenues
|
$
|
7,400
|
|
|
$
|
4,672
|
|
|
$
|
2,728
|
|
|
58.4
|
%
|
|
$
|
23,077
|
|
|
$
|
15,388
|
|
|
$
|
7,689
|
|
|
50.0
|
%
|
Gross profit
|
3,498
|
|
|
2,132
|
|
|
1,366
|
|
|
64.1
|
%
|
|
11,176
|
|
|
6,803
|
|
|
4,373
|
|
|
64.3
|
%
|
||||||
Operating profit
|
522
|
|
|
1,032
|
|
|
(510
|
)
|
|
(49.4
|
)%
|
|
3,687
|
|
|
3,565
|
|
|
122
|
|
|
3.4
|
%
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(in thousands)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Customer stolen merchandise
|
$
|
32,613
|
|
|
$
|
36,950
|
|
|
$
|
97,223
|
|
|
$
|
120,245
|
|
Other merchandise losses
(1)
|
8,404
|
|
|
10,899
|
|
|
26,258
|
|
|
32,380
|
|
||||
Total merchandise losses
|
$
|
41,017
|
|
|
$
|
47,849
|
|
|
$
|
123,481
|
|
|
$
|
152,625
|
|
(1)
|
Other merchandise losses include unrepairable and missing merchandise, and loss/damage waiver claims.
|
|
Core U.S.
|
|
Acceptance Now Staffed
|
|
Acceptance Now Direct
|
|
Mexico
|
|
Franchising
|
|
Total
|
||||||||||||
Locations at beginning of period
|
2,381
|
|
|
1,106
|
|
|
125
|
|
|
131
|
|
|
225
|
|
|
3,968
|
|
||||||
New location openings
|
—
|
|
|
99
|
|
|
7
|
|
|
—
|
|
|
4
|
|
|
110
|
|
||||||
Acquired locations remaining open
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32
|
|
|
33
|
|
||||||
Conversions
|
—
|
|
|
(3
|
)
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Closed locations
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Merged with existing locations
|
(129
|
)
|
|
(95
|
)
|
|
(16
|
)
|
|
(8
|
)
|
|
—
|
|
|
(248
|
)
|
||||||
Sold or closed with no surviving location
|
(48
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(16
|
)
|
|
(65
|
)
|
||||||
Locations at end of period
|
2,205
|
|
|
1,107
|
|
|
119
|
|
|
122
|
|
|
245
|
|
|
3,798
|
|
||||||
Acquired locations closed and accounts merged with existing locations
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
||||||
Total approximate purchase price of acquired stores
(in millions)
|
$
|
2.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2.0
|
|
|
Payments Due by Period
|
||||||||||||||||||
(in thousands)
|
Total
|
|
2018
|
|
2019-2020
|
|
2021-2022
|
|
Thereafter
|
||||||||||
6.625% Senior Notes
(1)
|
341,225
|
|
|
9,697
|
|
|
331,528
|
|
|
—
|
|
|
—
|
|
|||||
4.75% Senior Notes
(2)
|
285,625
|
|
|
5,937
|
|
|
23,750
|
|
|
255,938
|
|
|
—
|
|
|||||
Operating Leases
|
428,856
|
|
|
38,669
|
|
|
254,791
|
|
|
120,537
|
|
|
14,859
|
|
|||||
Total
(3)
|
$
|
1,055,706
|
|
|
$
|
54,303
|
|
|
$
|
610,069
|
|
|
$
|
376,475
|
|
|
$
|
14,859
|
|
(1)
|
Includes interest payments of $9.7 million on each May 15 and November 15 of each year.
|
(2)
|
Includes interest payments of $5.9 million on each May 1 and November 1 of each year.
|
(3)
|
As of
September 30, 2018
, we have recorded $36.9 million in uncertain tax positions. Because of the uncertainty of the amounts to be ultimately paid as well as the timing of such payments, uncertain tax positions are not reflected in the contractual obligations table.
|
Exhibit No.
|
Description
|
|
|
2.1
|
|
|
|
3.1
|
|
|
|
3.2
|
|
|
|
3.3
|
|
|
|
3.4
|
|
|
|
4.1
|
|
|
|
4.2
|
|
|
|
4.3
|
|
|
|
4.4
|
|
|
|
10.1†
|
|
|
|
10.2
|
|
|
|
10.3†
|
|
|
|
10.4†
|
|
|
|
10.5†
|
|
|
|
10.6†
|
|
|
|
10.7†
|
|
|
|
10.8†
|
|
|
|
10.9†
|
|
|
|
10.10†
|
|
|
|
10.11†
|
|
|
|
10.12†
|
|
|
|
10.13†
|
|
|
|
10.14†
|
|
|
|
10.15†
|
|
|
|
10.16†
|
|
|
|
10.17†
|
|
|
|
10.18†
|
|
|
|
10.19†
|
|
|
|
10.20†
|
|
|
|
10.21†
|
|
|
|
10.22
|
|
|
|
10.23†
|
|
|
|
10.24
|
|
|
|
10.25
|
|
|
|
10.26
|
|
|
|
10.27
|
|
|
|
10.28
|
|
|
|
10.29
|
|
|
|
10.30†
|
|
|
|
10.31†
|
|
|
|
10.32†
|
|
|
|
10.33
|
|
|
|
10.34
†
|
|
|
|
10.35
|
|
|
|
10.36
|
|
|
|
10.37
|
|
|
|
10.38
†
|
|
|
|
10.39
|
|
|
|
18.1
|
|
|
|
21.1
|
|
|
|
31.1*
|
|
|
|
31.2*
|
|
|
|
32.1*
|
|
|
|
32.2*
|
|
|
|
101.INS*
|
XBRL Instance Document
|
|
|
101.SCH*
|
XBRL Taxonomy Extension Schema Document
|
|
|
101.CAL*
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
101.DEF*
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
101.LAB*
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
101.PRE*
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
†
|
Management contract or compensatory plan or arrangement.
|
*
|
Filed herewith.
|
|
|
|
|
RENT-A-CENTER, INC.
|
|
|
|
|
|
By:
|
/
S
/ MAUREEN B. SHORT
|
|
|
Maureen B. Short
|
|
|
Interim Chief Financial Officer
|
1 Year Rent A Center Chart |
1 Month Rent A Center Chart |
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