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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 |
☒
|
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.)
|
Title of each class
|
|
Trading Symbol
|
|
Name of each exchange on which registered
|
Common Stock, $.01 Par Value
|
|
RCII
|
|
New York Stock Exchange
|
Class
|
|
Outstanding
|
Common stock, $.01 par value per share
|
|
54,270,026
|
|
|
|
|
|
Page No.
|
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|
|
|
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||
|
|
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||
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||
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|
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||
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|
||
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|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
(In thousands, except per share data)
|
|
|
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Store
|
|
|
|
|
|
|
|
||||||||
Rentals and fees
|
$
|
551,680
|
|
|
$
|
562,403
|
|
|
$
|
1,115,034
|
|
|
$
|
1,127,117
|
|
Merchandise sales
|
70,842
|
|
|
64,990
|
|
|
175,312
|
|
|
172,346
|
|
||||
Installment sales
|
17,270
|
|
|
17,374
|
|
|
32,706
|
|
|
33,778
|
|
||||
Other
|
1,244
|
|
|
2,271
|
|
|
1,908
|
|
|
4,855
|
|
||||
Total store revenues
|
641,036
|
|
|
647,038
|
|
|
1,324,960
|
|
|
1,338,096
|
|
||||
Franchise
|
|
|
|
|
|
|
|
||||||||
Merchandise sales
|
10,673
|
|
|
4,880
|
|
|
19,129
|
|
|
8,514
|
|
||||
Royalty income and fees
|
4,216
|
|
|
3,812
|
|
|
8,530
|
|
|
7,163
|
|
||||
Total revenues
|
655,925
|
|
|
655,730
|
|
|
1,352,619
|
|
|
1,353,773
|
|
||||
Cost of revenues
|
|
|
|
|
|
|
|
||||||||
Store
|
|
|
|
|
|
|
|
||||||||
Cost of rentals and fees
|
155,658
|
|
|
156,041
|
|
|
311,030
|
|
|
312,136
|
|
||||
Cost of merchandise sold
|
76,034
|
|
|
65,562
|
|
|
179,425
|
|
|
161,915
|
|
||||
Cost of installment sales
|
5,682
|
|
|
5,617
|
|
|
10,606
|
|
|
10,859
|
|
||||
Total cost of store revenues
|
237,374
|
|
|
227,220
|
|
|
501,061
|
|
|
484,910
|
|
||||
Franchise cost of merchandise sold
|
10,480
|
|
|
4,624
|
|
|
18,621
|
|
|
7,999
|
|
||||
Total cost of revenues
|
247,854
|
|
|
231,844
|
|
|
519,682
|
|
|
492,909
|
|
||||
Gross profit
|
408,071
|
|
|
423,886
|
|
|
832,937
|
|
|
860,864
|
|
||||
Operating expenses
|
|
|
|
|
|
|
|
||||||||
Store expenses
|
|
|
|
|
|
|
|
||||||||
Labor
|
152,899
|
|
|
164,172
|
|
|
314,555
|
|
|
345,246
|
|
||||
Other store expenses
|
149,225
|
|
|
156,854
|
|
|
313,019
|
|
|
342,803
|
|
||||
General and administrative expenses
|
38,534
|
|
|
41,792
|
|
|
71,458
|
|
|
86,662
|
|
||||
Depreciation and amortization
|
15,121
|
|
|
17,428
|
|
|
30,894
|
|
|
35,328
|
|
||||
Other (gains) and charges
|
(77,537
|
)
|
|
16,489
|
|
|
(44,167
|
)
|
|
33,944
|
|
||||
Total operating expenses
|
278,242
|
|
|
396,735
|
|
|
685,759
|
|
|
843,983
|
|
||||
Operating profit
|
129,829
|
|
|
27,151
|
|
|
147,178
|
|
|
16,881
|
|
||||
Interest expense
|
10,092
|
|
|
10,806
|
|
|
19,481
|
|
|
22,166
|
|
||||
Interest income
|
(1,997
|
)
|
|
(202
|
)
|
|
(2,871
|
)
|
|
(411
|
)
|
||||
Earnings (loss) before income taxes
|
121,734
|
|
|
16,547
|
|
|
130,568
|
|
|
(4,874
|
)
|
||||
Income tax expense
|
27,279
|
|
|
2,794
|
|
|
28,790
|
|
|
1,216
|
|
||||
Net earnings (loss)
|
$
|
94,455
|
|
|
$
|
13,753
|
|
|
$
|
101,778
|
|
|
$
|
(6,090
|
)
|
Basic earnings (loss) per common share
|
$
|
1.74
|
|
|
$
|
0.26
|
|
|
$
|
1.88
|
|
|
$
|
(0.11
|
)
|
Diluted earnings (loss) per common share
|
$
|
1.70
|
|
|
$
|
0.25
|
|
|
$
|
1.83
|
|
|
$
|
(0.11
|
)
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
(In thousands)
|
|
|
|
||||||||||||
Net earnings (loss)
|
$
|
94,455
|
|
|
$
|
13,753
|
|
|
$
|
101,778
|
|
|
$
|
(6,090
|
)
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments, net of tax of $(57) and $(565), and $81 and $(127), for the three and six months ended 2019 and 2018, respectively
|
(217
|
)
|
|
(2,125
|
)
|
|
304
|
|
|
(477
|
)
|
||||
Total other comprehensive income (loss)
|
(217
|
)
|
|
(2,125
|
)
|
|
304
|
|
|
(477
|
)
|
||||
Comprehensive income (loss)
|
$
|
94,238
|
|
|
$
|
11,628
|
|
|
$
|
102,082
|
|
|
$
|
(6,567
|
)
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
(In thousands, except share and par value data)
|
Unaudited
|
|
|
||||
ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
353,139
|
|
|
$
|
155,391
|
|
Receivables, net of allowance for doubtful accounts of $4,349 and $4,883 in 2019 and 2018, respectively
|
65,666
|
|
|
69,645
|
|
||
Prepaid expenses and other assets
|
36,251
|
|
|
51,352
|
|
||
Rental merchandise, net
|
|
|
|
||||
On rent
|
625,865
|
|
|
683,808
|
|
||
Held for rent
|
113,253
|
|
|
123,662
|
|
||
Merchandise held for installment sale
|
3,874
|
|
|
3,834
|
|
||
Property assets, net of accumulated depreciation of $554,092 and $551,750 in 2019 and 2018, respectively
|
197,750
|
|
|
226,323
|
|
||
Operating lease right-of-use assets
|
265,767
|
|
|
—
|
|
||
Deferred tax asset
|
25,568
|
|
|
25,558
|
|
||
Goodwill
|
56,815
|
|
|
56,845
|
|
||
Other intangible assets, net
|
265
|
|
|
499
|
|
||
Total assets
|
$
|
1,744,213
|
|
|
$
|
1,396,917
|
|
LIABILITIES
|
|
|
|
||||
Accounts payable – trade
|
$
|
95,656
|
|
|
$
|
113,838
|
|
Accrued liabilities
|
314,415
|
|
|
337,459
|
|
||
Operating lease liabilities
|
271,635
|
|
|
—
|
|
||
Deferred tax liability
|
129,941
|
|
|
119,061
|
|
||
Senior notes, net
|
540,676
|
|
|
540,042
|
|
||
Total liabilities
|
1,352,323
|
|
|
1,110,400
|
|
||
STOCKHOLDERS’ EQUITY
|
|
|
|
||||
Common stock, $.01 par value; 250,000,000 shares authorized; 110,562,098 and 109,909,504 shares issued in 2019 and 2018, respectively
|
1,105
|
|
|
1,099
|
|
||
Additional paid-in capital
|
843,697
|
|
|
838,436
|
|
||
Retained earnings
|
905,726
|
|
|
805,924
|
|
||
Treasury stock at cost, 56,369,752 shares in 2019 and 2018
|
(1,347,677
|
)
|
|
(1,347,677
|
)
|
||
Accumulated other comprehensive loss
|
(10,961
|
)
|
|
(11,265
|
)
|
||
Total stockholders' equity
|
391,890
|
|
|
286,517
|
|
||
Total liabilities and stockholders' equity
|
$
|
1,744,213
|
|
|
$
|
1,396,917
|
|
|
Common Stock
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
|
|
Treasury
Stock
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Total
|
|||||||||||||||
|
Shares
|
|
Amount
|
|
||||||||||||||||||||||
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance at December 31, 2017
|
109,682
|
|
|
$
|
1,097
|
|
|
$
|
831,271
|
|
|
$
|
798,743
|
|
|
$
|
(1,347,677
|
)
|
|
$
|
(10,991
|
)
|
|
$
|
272,443
|
|
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(19,843
|
)
|
|
—
|
|
|
—
|
|
|
(19,843
|
)
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,648
|
|
|
1,648
|
|
||||||
Exercise of stock options
|
36
|
|
|
—
|
|
|
374
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
374
|
|
||||||
Vesting of restricted share units
|
66
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||
Shares withheld for employee taxes on awards vested & exercised
|
—
|
|
|
—
|
|
|
(195
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(195
|
)
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
1,862
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,862
|
|
||||||
ASC 606 adoption
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,311
|
)
|
|
—
|
|
|
—
|
|
|
(1,311
|
)
|
||||||
Balance at March 31, 2018
|
109,784
|
|
|
1,097
|
|
|
833,311
|
|
|
777,589
|
|
|
(1,347,677
|
)
|
|
(9,343
|
)
|
|
254,977
|
|
||||||
Net earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
13,753
|
|
|
—
|
|
|
—
|
|
|
13,753
|
|
||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,125
|
)
|
|
(2,125
|
)
|
||||||
Exercise of stock options
|
61
|
|
|
1
|
|
|
596
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
597
|
|
||||||
Vesting of restricted share units
|
25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
1,133
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,133
|
|
||||||
Balance at June 30, 2018
|
109,870
|
|
|
$
|
1,098
|
|
|
$
|
835,040
|
|
|
$
|
791,342
|
|
|
$
|
(1,347,677
|
)
|
|
$
|
(11,468
|
)
|
|
$
|
268,335
|
|
|
Six Months Ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
(In thousands)
|
|
||||||
Cash flows from operating activities
|
|
|
|
||||
Net earnings (loss)
|
$
|
101,778
|
|
|
$
|
(6,090
|
)
|
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities
|
|
|
|
||||
Depreciation of rental merchandise
|
309,211
|
|
|
308,776
|
|
||
Bad debt expense
|
5,978
|
|
|
5,846
|
|
||
Stock-based compensation expense
|
2,691
|
|
|
2,995
|
|
||
Depreciation of property assets
|
30,809
|
|
|
35,017
|
|
||
Loss on sale or disposal of property assets
|
1,472
|
|
|
2,423
|
|
||
Amortization of intangibles
|
85
|
|
|
310
|
|
||
Amortization of financing fees
|
1,958
|
|
|
2,701
|
|
||
Deferred income taxes
|
10,814
|
|
|
1,492
|
|
||
Changes in operating assets and liabilities, net of effects of acquisitions
|
|
|
|
||||
Rental merchandise
|
(253,259
|
)
|
|
(229,068
|
)
|
||
Receivables
|
(2,995
|
)
|
|
(5,700
|
)
|
||
Prepaid expenses and other assets
|
15,384
|
|
|
10,982
|
|
||
Operating lease right-of-use assets and lease liabilities
|
5,868
|
|
|
—
|
|
||
Accounts payable – trade
|
(18,182
|
)
|
|
2,044
|
|
||
Accrued liabilities
|
(26,194
|
)
|
|
11,178
|
|
||
Net cash provided by operating activities
|
185,418
|
|
|
142,906
|
|
||
Cash flows from investing activities
|
|
|
|
||||
Purchase of property assets
|
(5,088
|
)
|
|
(15,695
|
)
|
||
Proceeds from sale of property assets
|
13,792
|
|
|
14,792
|
|
||
Hurricane insurance recovery proceeds
|
995
|
|
|
—
|
|
||
Acquisitions of businesses
|
(155
|
)
|
|
(761
|
)
|
||
Net cash provided by (used in) investing activities
|
9,544
|
|
|
(1,664
|
)
|
||
Cash flows from financing activities
|
|
|
|
||||
Exercise of stock options
|
4,310
|
|
|
970
|
|
||
Shares withheld for payment of employee tax withholdings
|
(1,733
|
)
|
|
(271
|
)
|
||
Debt issuance costs
|
(157
|
)
|
|
—
|
|
||
Proceeds from debt
|
5,400
|
|
|
26,850
|
|
||
Repayments of debt
|
(5,400
|
)
|
|
(125,010
|
)
|
||
Net cash provided by (used in) financing activities
|
2,420
|
|
|
(97,461
|
)
|
||
Effect of exchange rate changes on cash
|
366
|
|
|
84
|
|
||
Net increase in cash and cash equivalents
|
197,748
|
|
|
43,865
|
|
||
Cash and cash equivalents at beginning of period
|
155,391
|
|
|
72,968
|
|
||
Cash and cash equivalents at end of period
|
$
|
353,139
|
|
|
$
|
116,833
|
|
|
Three Months Ended June 30, 2019
|
||||||||||||||||||
|
Core U.S.
|
|
Acceptance Now
|
|
Mexico
|
|
Franchising
|
|
Consolidated
|
||||||||||
(In thousands)
|
|
||||||||||||||||||
Store
|
|
|
|
|
|
|
|
|
|
||||||||||
Rentals and fees
|
$
|
399,799
|
|
|
$
|
139,104
|
|
|
$
|
12,777
|
|
|
$
|
—
|
|
|
$
|
551,680
|
|
Merchandise sales
|
32,935
|
|
|
37,140
|
|
|
767
|
|
|
—
|
|
|
70,842
|
|
|||||
Installment sales
|
17,270
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,270
|
|
|||||
Other
|
1,092
|
|
|
145
|
|
|
7
|
|
|
—
|
|
|
1,244
|
|
|||||
Total store revenues
|
451,096
|
|
|
176,389
|
|
|
13,551
|
|
|
—
|
|
|
641,036
|
|
|||||
Franchise
|
|
|
|
|
|
|
|
|
|
||||||||||
Merchandise sales
|
—
|
|
|
—
|
|
|
—
|
|
|
10,673
|
|
|
10,673
|
|
|||||
Royalty income and fees
|
—
|
|
|
—
|
|
|
—
|
|
|
4,216
|
|
|
4,216
|
|
|||||
Total revenues
|
$
|
451,096
|
|
|
$
|
176,389
|
|
|
$
|
13,551
|
|
|
$
|
14,889
|
|
|
$
|
655,925
|
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||||
|
Core U.S.
|
|
Acceptance Now
|
|
Mexico
|
|
Franchising
|
|
Consolidated
|
||||||||||
(In thousands)
|
|
||||||||||||||||||
Store
|
|
|
|
|
|
|
|
|
|
||||||||||
Rentals and fees
|
$
|
807,379
|
|
|
$
|
282,297
|
|
|
$
|
25,358
|
|
|
$
|
—
|
|
|
$
|
1,115,034
|
|
Merchandise sales
|
83,493
|
|
|
90,296
|
|
|
1,523
|
|
|
—
|
|
|
175,312
|
|
|||||
Installment sales
|
32,706
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32,706
|
|
|||||
Other
|
1,575
|
|
|
318
|
|
|
15
|
|
|
—
|
|
|
1,908
|
|
|||||
Total store revenues
|
925,153
|
|
|
372,911
|
|
|
26,896
|
|
|
—
|
|
|
1,324,960
|
|
|||||
Franchise
|
|
|
|
|
|
|
|
|
|
||||||||||
Merchandise sales
|
—
|
|
|
—
|
|
|
—
|
|
|
19,129
|
|
|
19,129
|
|
|||||
Royalty income and fees
|
—
|
|
|
—
|
|
|
—
|
|
|
8,530
|
|
|
8,530
|
|
|||||
Total revenues
|
$
|
925,153
|
|
|
$
|
372,911
|
|
|
$
|
26,896
|
|
|
$
|
27,659
|
|
|
$
|
1,352,619
|
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||
|
Core U.S.
|
|
Acceptance Now
|
|
Mexico
|
|
Franchising
|
|
Consolidated
|
||||||||||
(In thousands)
|
|
||||||||||||||||||
Store
|
|
|
|
|
|
|
|
|
|
||||||||||
Rentals and fees
|
$
|
410,108
|
|
|
$
|
140,799
|
|
|
$
|
11,496
|
|
|
$
|
—
|
|
|
$
|
562,403
|
|
Merchandise sales
|
26,109
|
|
|
38,077
|
|
|
804
|
|
|
—
|
|
|
64,990
|
|
|||||
Installment sales
|
17,374
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,374
|
|
|||||
Other
|
2,129
|
|
|
135
|
|
|
7
|
|
|
—
|
|
|
2,271
|
|
|||||
Total store revenues
|
455,720
|
|
|
179,011
|
|
|
12,307
|
|
|
—
|
|
|
647,038
|
|
|||||
Franchise
|
|
|
|
|
|
|
|
|
|
||||||||||
Merchandise sales
|
—
|
|
|
—
|
|
|
—
|
|
|
4,880
|
|
|
4,880
|
|
|||||
Royalty income and fees
|
—
|
|
|
—
|
|
|
—
|
|
|
3,812
|
|
|
3,812
|
|
|||||
Total revenues
|
$
|
455,720
|
|
|
$
|
179,011
|
|
|
$
|
12,307
|
|
|
$
|
8,692
|
|
|
$
|
655,730
|
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||
|
Core U.S.
|
|
Acceptance Now
|
|
Mexico
|
|
Franchising
|
|
Consolidated
|
||||||||||
(In thousands)
|
|
||||||||||||||||||
Store
|
|
|
|
|
|
|
|
|
|
||||||||||
Rentals and fees
|
$
|
822,750
|
|
|
$
|
281,623
|
|
|
$
|
22,744
|
|
|
$
|
—
|
|
|
$
|
1,127,117
|
|
Merchandise sales
|
76,693
|
|
|
94,083
|
|
|
1,570
|
|
|
—
|
|
|
172,346
|
|
|||||
Installment sales
|
33,778
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33,778
|
|
|||||
Other
|
4,540
|
|
|
291
|
|
|
24
|
|
|
—
|
|
|
4,855
|
|
|||||
Total store revenues
|
937,761
|
|
|
375,997
|
|
|
24,338
|
|
|
—
|
|
|
1,338,096
|
|
|||||
Franchise
|
|
|
|
|
|
|
|
|
|
||||||||||
Merchandise sales
|
—
|
|
|
—
|
|
|
—
|
|
|
8,514
|
|
|
8,514
|
|
|||||
Royalty income and fees
|
—
|
|
|
—
|
|
|
—
|
|
|
7,163
|
|
|
7,163
|
|
|||||
Total revenues
|
$
|
937,761
|
|
|
$
|
375,997
|
|
|
$
|
24,338
|
|
|
$
|
15,677
|
|
|
$
|
1,353,773
|
|
(In thousands)
|
June 30, 2019
|
|
December 31, 2018
|
||||
Installment sales receivable
|
$
|
52,332
|
|
|
$
|
54,746
|
|
Trade and notes receivables
|
17,683
|
|
|
19,782
|
|
||
Total receivables
|
70,015
|
|
|
74,528
|
|
||
Less allowance for doubtful accounts
|
(4,349
|
)
|
|
(4,883
|
)
|
||
Total receivables, net of allowance for doubtful accounts
|
$
|
65,666
|
|
|
$
|
69,645
|
|
(In thousands)
|
June 30, 2019
|
||
Beginning allowance for doubtful accounts
|
$
|
4,883
|
|
Bad debt expense
|
5,978
|
|
|
Accounts written off
|
(6,773
|
)
|
|
Recoveries
|
261
|
|
|
Ending allowance for doubtful accounts
|
$
|
4,349
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||
(in thousands)
|
June 30, 2019
|
|
June 30, 2019
|
||||
Operating lease cost included in other store expenses
(1)
|
$
|
38,232
|
|
|
$
|
74,785
|
|
Operating lease cost included in other (gains) and charges
|
5,111
|
|
|
7,252
|
|
||
Sublease receipts
|
(1,818
|
)
|
|
(3,494
|
)
|
||
Total operating lease charges
|
$
|
41,525
|
|
|
$
|
78,543
|
|
|
Six Months Ended
|
||
(in thousands)
|
June 30, 2019
|
||
Cash paid for amounts included in measurement of operating lease liabilities
|
$
|
61,333
|
|
Cash paid for short-term operating leases not included in operating lease liabilities
|
14,451
|
|
|
Right-of-use assets obtained in exchange for new operating lease liabilities
|
10,540
|
|
(in thousands)
|
June 30, 2019
|
|
Weighted-average discount rate
(1)
|
8.0
|
%
|
Weighted-average remaining lease term (in years)
|
3
|
|
(In thousands)
|
Operating Leases
|
||
2019
|
$
|
61,288
|
|
2020
|
104,264
|
|
|
2021
|
72,264
|
|
|
2022
|
43,637
|
|
|
2023
|
19,536
|
|
|
Thereafter
|
5,893
|
|
|
Total undiscounted operating lease liabilities
|
306,882
|
|
|
Less: Interest
|
(35,247
|
)
|
|
Total present value of operating lease liabilities
|
$
|
271,635
|
|
(In thousands)
|
Operating Leases
|
||
2019
|
$
|
145,345
|
|
2020
|
116,785
|
|
|
2021
|
80,362
|
|
|
2022
|
47,417
|
|
|
2023
|
16,460
|
|
|
Thereafter
|
2,280
|
|
|
Total future minimum rental payments
|
408,649
|
|
•
|
create certain liens and enter into certain sale and lease-back transactions;
|
•
|
create, assume, incur or guarantee certain indebtedness;
|
•
|
pay dividends or make other distributions on, or repurchase or redeem, the company’s capital stock or certain other debt;
|
•
|
make other restricted payments; and
|
•
|
consolidate or merge with, or convey, transfer or lease all or substantially all of the company’s and its restricted subsidiaries’ assets, to another person.
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
(in thousands)
|
Carrying Value
|
|
Fair Value
|
|
Difference
|
|
Carrying Value
|
|
Fair Value
|
|
Difference
|
||||||||||||
6.625% senior notes
|
$
|
292,740
|
|
|
$
|
292,740
|
|
|
$
|
—
|
|
|
$
|
292,740
|
|
|
$
|
285,509
|
|
|
$
|
(7,231
|
)
|
4.75% senior notes
|
250,000
|
|
|
248,750
|
|
|
(1,250
|
)
|
|
250,000
|
|
|
239,050
|
|
|
(10,950
|
)
|
||||||
Total senior notes
|
$
|
542,740
|
|
|
$
|
541,490
|
|
|
$
|
(1,250
|
)
|
|
$
|
542,740
|
|
|
$
|
524,559
|
|
|
$
|
(18,181
|
)
|
(in thousands)
|
Accrued Charges at December 31, 2018
|
|
Charges & Adjustments
|
|
Payments & Adjustments
|
|
Accrued Charges at June 30, 2019
|
||||||||
Cash charges:
|
|
|
|
|
|
|
|
||||||||
Labor reduction costs
|
$
|
7,623
|
|
|
$
|
3,145
|
|
|
$
|
(8,525
|
)
|
|
$
|
2,243
|
|
Lease obligation costs
(1)
|
4,882
|
|
|
—
|
|
|
(4,882
|
)
|
|
—
|
|
||||
Other miscellaneous
|
—
|
|
|
2,565
|
|
|
(2,565
|
)
|
|
—
|
|
||||
Total cash charges
|
$
|
12,505
|
|
|
5,710
|
|
|
$
|
(15,972
|
)
|
|
$
|
2,243
|
|
|
Non-cash charges:
|
|
|
|
|
|
|
|
||||||||
Asset impairments
(2)
|
|
|
8,283
|
|
|
|
|
|
|||||||
Other
(3)
|
|
|
(58,160
|
)
|
|
|
|
|
|||||||
Total other (gains) and charges
|
|
|
$
|
(44,167
|
)
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Core U.S.
|
$
|
451,096
|
|
|
$
|
455,720
|
|
|
$
|
925,153
|
|
|
$
|
937,761
|
|
Acceptance Now
|
176,389
|
|
|
179,011
|
|
|
372,911
|
|
|
375,997
|
|
||||
Mexico
|
13,551
|
|
|
12,307
|
|
|
26,896
|
|
|
24,338
|
|
||||
Franchising
|
14,889
|
|
|
8,692
|
|
|
27,659
|
|
|
15,677
|
|
||||
Total revenues
|
$
|
655,925
|
|
|
$
|
655,730
|
|
|
$
|
1,352,619
|
|
|
$
|
1,353,773
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Gross profit
|
|
|
|
|
|
|
|
||||||||
Core U.S.
|
$
|
313,871
|
|
|
$
|
325,219
|
|
|
$
|
638,511
|
|
|
$
|
661,460
|
|
Acceptance Now
|
80,380
|
|
|
86,050
|
|
|
166,708
|
|
|
174,855
|
|
||||
Mexico
|
9,411
|
|
|
8,549
|
|
|
18,680
|
|
|
16,871
|
|
||||
Franchising
|
4,409
|
|
|
4,068
|
|
|
9,038
|
|
|
7,678
|
|
||||
Total gross profit
|
$
|
408,071
|
|
|
$
|
423,886
|
|
|
$
|
832,937
|
|
|
$
|
860,864
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Operating profit
|
|
|
|
|
|
|
|
||||||||
Core U.S.
|
$
|
64,925
|
|
|
$
|
43,527
|
|
|
$
|
118,236
|
|
|
$
|
71,914
|
|
Acceptance Now
|
22,734
|
|
|
29,157
|
|
|
44,247
|
|
|
44,587
|
|
||||
Mexico
|
1,474
|
|
|
887
|
|
|
2,693
|
|
|
1,384
|
|
||||
Franchising
|
1,803
|
|
|
1,909
|
|
|
3,581
|
|
|
3,165
|
|
||||
Total segments
|
90,936
|
|
|
75,480
|
|
|
168,757
|
|
|
121,050
|
|
||||
Corporate
|
38,893
|
|
|
(48,329
|
)
|
|
(21,579
|
)
|
|
(104,169
|
)
|
||||
Total operating profit
|
$
|
129,829
|
|
|
$
|
27,151
|
|
|
$
|
147,178
|
|
|
$
|
16,881
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Depreciation and amortization
|
|
|
|
|
|
|
|
||||||||
Core U.S.
|
$
|
5,110
|
|
|
$
|
6,440
|
|
|
$
|
10,582
|
|
|
$
|
13,266
|
|
Acceptance Now
|
313
|
|
|
432
|
|
|
661
|
|
|
867
|
|
||||
Mexico
|
95
|
|
|
273
|
|
|
235
|
|
|
617
|
|
||||
Franchising
|
9
|
|
|
44
|
|
|
39
|
|
|
88
|
|
||||
Total segments
|
5,527
|
|
|
7,189
|
|
|
11,517
|
|
|
14,838
|
|
||||
Corporate
|
9,594
|
|
|
10,239
|
|
|
19,377
|
|
|
20,490
|
|
||||
Total depreciation and amortization
|
$
|
15,121
|
|
|
$
|
17,428
|
|
|
$
|
30,894
|
|
|
$
|
35,328
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Capital expenditures
|
|
|
|
|
|
|
|
||||||||
Core U.S.
|
$
|
907
|
|
|
$
|
4,325
|
|
|
$
|
1,465
|
|
|
$
|
9,215
|
|
Acceptance Now
|
54
|
|
|
35
|
|
|
101
|
|
|
80
|
|
||||
Mexico
|
27
|
|
|
35
|
|
|
30
|
|
|
38
|
|
||||
Total segments
|
988
|
|
|
4,395
|
|
|
1,596
|
|
|
9,333
|
|
||||
Corporate
|
1,592
|
|
|
2,651
|
|
|
3,492
|
|
|
6,362
|
|
||||
Total capital expenditures
|
$
|
2,580
|
|
|
$
|
7,046
|
|
|
$
|
5,088
|
|
|
$
|
15,695
|
|
(in thousands)
|
June 30, 2019
|
|
December 31, 2018
|
||||
On rent rental merchandise, net
|
|
|
|
||||
Core U.S.
|
$
|
392,904
|
|
|
$
|
424,829
|
|
Acceptance Now
|
216,988
|
|
|
242,978
|
|
||
Mexico
|
15,973
|
|
|
16,001
|
|
||
Total on rent rental merchandise, net
|
$
|
625,865
|
|
|
$
|
683,808
|
|
(in thousands)
|
June 30, 2019
|
|
December 31, 2018
|
||||
Held for rent rental merchandise, net
|
|
|
|
||||
Core U.S.
|
$
|
107,778
|
|
|
$
|
117,294
|
|
Acceptance Now
|
982
|
|
|
1,207
|
|
||
Mexico
|
4,493
|
|
|
5,161
|
|
||
Total held for rent rental merchandise, net
|
$
|
113,253
|
|
|
$
|
123,662
|
|
(in thousands)
|
June 30, 2019
|
|
December 31, 2018
|
||||
Assets by segment
|
|
|
|
||||
Core U.S.
|
$
|
922,482
|
|
|
$
|
714,914
|
|
Acceptance Now
|
281,835
|
|
|
312,151
|
|
||
Mexico
|
36,605
|
|
|
29,321
|
|
||
Franchising
|
7,159
|
|
|
4,287
|
|
||
Total segments
|
1,248,081
|
|
|
1,060,673
|
|
||
Corporate
|
496,132
|
|
|
336,244
|
|
||
Total assets
|
$
|
1,744,213
|
|
|
$
|
1,396,917
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(in thousands, except per share data)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net earnings (loss)
|
$
|
94,455
|
|
|
$
|
13,753
|
|
|
$
|
101,778
|
|
|
$
|
(6,090
|
)
|
Denominator:
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares outstanding
|
54,153
|
|
|
53,450
|
|
|
54,042
|
|
|
53,428
|
|
||||
Effect of dilutive stock awards
(1)
|
1,553
|
|
|
845
|
|
|
1,559
|
|
|
—
|
|
||||
Weighted-average dilutive shares
|
55,706
|
|
|
54,295
|
|
|
55,601
|
|
|
53,428
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Basic earnings (loss) per common share
|
$
|
1.74
|
|
|
$
|
0.26
|
|
|
$
|
1.88
|
|
|
$
|
(0.11
|
)
|
Diluted earnings (loss) per common share
|
$
|
1.70
|
|
|
$
|
0.25
|
|
|
$
|
1.83
|
|
|
$
|
(0.11
|
)
|
Anti-dilutive securities excluded from diluted loss per common share:
|
|
|
|
|
|
|
|
||||||||
Anti-dilutive restricted share units
|
—
|
|
|
—
|
|
|
—
|
|
|
797
|
|
||||
Anti-dilutive performance share units
|
263
|
|
|
222
|
|
|
263
|
|
|
1,172
|
|
||||
Anti-dilutive stock options
|
1,107
|
|
|
2,411
|
|
|
1,123
|
|
|
2,801
|
|
(1)
|
There was no dilutive effect to the loss per common share for the six months ended June 30, 2018 due to the net loss incurred for respective period.
|
•
|
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;
|
•
|
capital market conditions, including availability of funding sources for us;
|
•
|
changes in our credit ratings;
|
•
|
difficulties encountered in improving the financial and operational performance of our business segments, including our ability to execute our franchise strategy;
|
•
|
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;
|
•
|
failure to manage our store labor and other store expenses;
|
•
|
disruptions caused by the operation of our store information management system;
|
•
|
our ability to satisfy all conditions required to successfully complete the acquisition of substantially all the assets and assumptions of certain liabilities of C/C Financial Corp., a Delaware Corporation d/b/a Merchants Preferred ("Merchants Preferred" and the acquisition thereof, the "Merchants Preferred Acquisition");
|
•
|
our ability to realize the strategic benefits from the Merchants Preferred Acquisition, including achieving expected synergies and operating efficiencies from the acquisition;
|
•
|
our ability to successfully integrate Merchants Preferred's operations which may be more difficult, time-consuming or costly than expected;
|
•
|
operating costs, loss of retail partners and business disruption arising from the Merchants Preferred Aquisition;
|
•
|
the ability to retain certain key employees at Merchants Preferred;
|
•
|
risks related to Merchants Preferred's virtual rent-to-own business;
|
•
|
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;
|
•
|
rapid inflation or deflation in the prices of our products;
|
•
|
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 available cash flow and our ability to generate sufficient cash flow to pay dividends;
|
•
|
our ability to identify and successfully market products and services that appeal to our customer demographic;
|
•
|
consumer preferences and perceptions of our brand;
|
•
|
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;
|
•
|
litigation or administrative proceedings to which we are or may be a party to from time to time; and
|
•
|
the other risks detailed from time to time in our reports furnished or filed with the Securities and Exchange Commission.
|
•
|
Optimizing our cost structure by continuing to capitalize on recent initiatives targeting overhead, supply chain, and other store expenses; in addition to identifying future opportunities to efficiently manage cost within the business.
|
•
|
Enhance our value proposition through targeted pricing strategies across product categories aimed at improving traffic trends and increasing ownership.
|
•
|
Focus on franchising in underperforming markets and stabilizing our brick and mortar footprint.
|
|
Three Months Ended
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
||||||||||||||||||
|
June 30,
|
|
Change
|
|
June 30,
|
|
Change
|
||||||||||||||||||||||
(dollar amounts in thousands)
|
2019
|
|
2018
|
|
$
|
|
%
|
|
2019
|
|
2018
|
|
$
|
|
%
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Store
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Rentals and fees
|
$
|
551,680
|
|
|
$
|
562,403
|
|
|
$
|
(10,723
|
)
|
|
(1.9
|
)%
|
|
$
|
1,115,034
|
|
|
$
|
1,127,117
|
|
|
$
|
(12,083
|
)
|
|
(1.1
|
)%
|
Merchandise sales
|
70,842
|
|
|
64,990
|
|
|
5,852
|
|
|
9.0
|
%
|
|
175,312
|
|
|
172,346
|
|
|
2,966
|
|
|
1.7
|
%
|
||||||
Installment sales
|
17,270
|
|
|
17,374
|
|
|
(104
|
)
|
|
(0.6
|
)%
|
|
32,706
|
|
|
33,778
|
|
|
(1,072
|
)
|
|
(3.2
|
)%
|
||||||
Other
|
1,244
|
|
|
2,271
|
|
|
(1,027
|
)
|
|
(45.2
|
)%
|
|
1,908
|
|
|
4,855
|
|
|
(2,947
|
)
|
|
(60.7
|
)%
|
||||||
Total store revenue
|
641,036
|
|
|
647,038
|
|
|
(6,002
|
)
|
|
(0.9
|
)%
|
|
1,324,960
|
|
|
1,338,096
|
|
|
(13,136
|
)
|
|
(1.0
|
)%
|
||||||
Franchise
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Merchandise sales
|
10,673
|
|
|
4,880
|
|
|
5,793
|
|
|
118.7
|
%
|
|
19,129
|
|
|
8,514
|
|
|
10,615
|
|
|
124.7
|
%
|
||||||
Royalty income and fees
|
4,216
|
|
|
3,812
|
|
|
404
|
|
|
10.6
|
%
|
|
8,530
|
|
|
7,163
|
|
|
1,367
|
|
|
19.1
|
%
|
||||||
Total revenues
|
655,925
|
|
|
655,730
|
|
|
195
|
|
|
—
|
%
|
|
1,352,619
|
|
|
1,353,773
|
|
|
(1,154
|
)
|
|
(0.1
|
)%
|
||||||
Cost of revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Store
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Cost of rentals and fees
|
155,658
|
|
|
156,041
|
|
|
(383
|
)
|
|
(0.2
|
)%
|
|
311,030
|
|
|
312,136
|
|
|
(1,106
|
)
|
|
(0.4
|
)%
|
||||||
Cost of merchandise sold
|
76,034
|
|
|
65,562
|
|
|
10,472
|
|
|
16.0
|
%
|
|
179,425
|
|
|
161,915
|
|
|
17,510
|
|
|
10.8
|
%
|
||||||
Cost of installment sales
|
5,682
|
|
|
5,617
|
|
|
65
|
|
|
1.2
|
%
|
|
10,606
|
|
|
10,859
|
|
|
(253
|
)
|
|
(2.3
|
)%
|
||||||
Total cost of store revenues
|
237,374
|
|
|
227,220
|
|
|
10,154
|
|
|
4.5
|
%
|
|
501,061
|
|
|
484,910
|
|
|
16,151
|
|
|
3.3
|
%
|
||||||
Franchise cost of merchandise sold
|
10,480
|
|
|
4,624
|
|
|
5,856
|
|
|
126.6
|
%
|
|
18,621
|
|
|
7,999
|
|
|
10,622
|
|
|
132.8
|
%
|
||||||
Total cost of revenues
|
247,854
|
|
|
231,844
|
|
|
16,010
|
|
|
6.9
|
%
|
|
519,682
|
|
|
492,909
|
|
|
26,773
|
|
|
5.4
|
%
|
||||||
Gross profit
|
408,071
|
|
|
423,886
|
|
|
(15,815
|
)
|
|
(3.7
|
)%
|
|
832,937
|
|
|
860,864
|
|
|
(27,927
|
)
|
|
(3.2
|
)%
|
||||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Store expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Labor
|
152,899
|
|
|
164,172
|
|
|
(11,273
|
)
|
|
(6.9
|
)%
|
|
314,555
|
|
|
345,246
|
|
|
(30,691
|
)
|
|
(8.9
|
)%
|
||||||
Other store expenses
|
149,225
|
|
|
156,854
|
|
|
(7,629
|
)
|
|
(4.9
|
)%
|
|
313,019
|
|
|
342,803
|
|
|
(29,784
|
)
|
|
(8.7
|
)%
|
||||||
General and administrative expenses
|
38,534
|
|
|
41,792
|
|
|
(3,258
|
)
|
|
(7.8
|
)%
|
|
71,458
|
|
|
86,662
|
|
|
(15,204
|
)
|
|
(17.5
|
)%
|
||||||
Depreciation and amortization
|
15,121
|
|
|
17,428
|
|
|
(2,307
|
)
|
|
(13.2
|
)%
|
|
30,894
|
|
|
35,328
|
|
|
(4,434
|
)
|
|
(12.6
|
)%
|
||||||
Other (gains) and charges
|
(77,537
|
)
|
|
16,489
|
|
|
(94,026
|
)
|
|
(570.2
|
)%
|
|
(44,167
|
)
|
|
33,944
|
|
|
(78,111
|
)
|
|
(230.1
|
)%
|
||||||
Total operating expenses
|
278,242
|
|
|
396,735
|
|
|
(118,493
|
)
|
|
(29.9
|
)%
|
|
685,759
|
|
|
843,983
|
|
|
(158,224
|
)
|
|
(18.7
|
)%
|
||||||
Operating profit
|
129,829
|
|
|
27,151
|
|
|
102,678
|
|
|
378.2
|
%
|
|
147,178
|
|
|
16,881
|
|
|
130,297
|
|
|
771.9
|
%
|
||||||
Interest, net
|
8,095
|
|
|
10,604
|
|
|
(2,509
|
)
|
|
(23.7
|
)%
|
|
16,610
|
|
|
21,755
|
|
|
(5,145
|
)
|
|
(23.6
|
)%
|
||||||
Earnings (loss) before income taxes
|
121,734
|
|
|
16,547
|
|
|
105,187
|
|
|
635.7
|
%
|
|
130,568
|
|
|
(4,874
|
)
|
|
135,442
|
|
|
2,778.9
|
%
|
||||||
Income tax expense
|
27,279
|
|
|
2,794
|
|
|
24,485
|
|
|
876.3
|
%
|
|
28,790
|
|
|
1,216
|
|
|
27,574
|
|
|
2,267.6
|
%
|
||||||
Net earnings (loss)
|
$
|
94,455
|
|
|
$
|
13,753
|
|
|
$
|
80,702
|
|
|
586.8
|
%
|
|
$
|
101,778
|
|
|
$
|
(6,090
|
)
|
|
$
|
107,868
|
|
|
1,771.2
|
%
|
|
Three Months Ended
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
||||||||||||||||||
|
June 30,
|
|
Change
|
|
June 30,
|
|
Change
|
||||||||||||||||||||||
(dollar amounts in thousands)
|
2019
|
|
2018
|
|
$
|
|
%
|
|
2019
|
|
2018
|
|
$
|
|
%
|
||||||||||||||
Revenues
|
$
|
451,096
|
|
|
$
|
455,720
|
|
|
$
|
(4,624
|
)
|
|
(1.0
|
)%
|
|
$
|
925,153
|
|
|
$
|
937,761
|
|
|
$
|
(12,608
|
)
|
|
(1.3
|
)%
|
Gross profit
|
313,871
|
|
|
325,219
|
|
|
(11,348
|
)
|
|
(3.5
|
)%
|
|
638,511
|
|
|
661,460
|
|
|
(22,949
|
)
|
|
(3.5
|
)%
|
||||||
Operating profit
|
64,925
|
|
|
43,527
|
|
|
21,398
|
|
|
49.2
|
%
|
|
118,236
|
|
|
71,914
|
|
|
46,322
|
|
|
64.4
|
%
|
||||||
Change in same store revenue
|
|
|
|
|
|
|
5.6
|
%
|
|
|
|
|
|
|
|
5.7
|
%
|
||||||||||||
Stores in same store revenue calculation
|
|
|
|
|
|
|
1,647
|
|
|
|
|
|
|
|
1,754
|
|
Three Months Ended
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
||||||||||||||||||
|
June 30,
|
|
Change
|
|
June 30,
|
|
Change
|
||||||||||||||||||||||
(dollar amounts in thousands)
|
2019
|
|
2018
|
|
$
|
|
%
|
|
2019
|
|
2018
|
|
$
|
|
%
|
||||||||||||||
Revenues
|
$
|
176,389
|
|
|
$
|
179,011
|
|
|
$
|
(2,622
|
)
|
|
(1.5
|
)%
|
|
$
|
372,911
|
|
|
$
|
375,997
|
|
|
$
|
(3,086
|
)
|
|
(0.8
|
)%
|
Gross profit
|
80,380
|
|
|
86,050
|
|
|
(5,670
|
)
|
|
(6.6
|
)%
|
|
166,708
|
|
|
174,855
|
|
|
(8,147
|
)
|
|
(4.7
|
)%
|
||||||
Operating profit
|
22,734
|
|
|
29,157
|
|
|
(6,423
|
)
|
|
(22.0
|
)%
|
|
44,247
|
|
|
44,587
|
|
|
(340
|
)
|
|
(0.8
|
)%
|
||||||
Change in same store revenue
|
|
|
|
|
|
|
6.0
|
%
|
|
|
|
|
|
|
|
7.7
|
%
|
||||||||||||
Stores in same store revenue calculation
|
|
|
|
|
|
|
695
|
|
|
|
|
|
|
|
|
765
|
|
Three Months Ended
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
||||||||||||||||||
|
June 30,
|
|
Change
|
|
June 30,
|
|
Change
|
||||||||||||||||||||||
(dollar amounts in thousands)
|
2019
|
|
2018
|
|
$
|
|
%
|
|
2019
|
|
2018
|
|
$
|
|
%
|
||||||||||||||
Revenues
|
$
|
13,551
|
|
|
$
|
12,307
|
|
|
$
|
1,244
|
|
|
10.1
|
%
|
|
$
|
26,896
|
|
|
$
|
24,338
|
|
|
$
|
2,558
|
|
|
10.5
|
%
|
Gross profit
|
9,411
|
|
|
8,549
|
|
|
862
|
|
|
10.1
|
%
|
|
18,680
|
|
|
16,871
|
|
|
1,809
|
|
|
10.7
|
%
|
||||||
Operating profit
|
1,474
|
|
|
887
|
|
|
587
|
|
|
66.2
|
%
|
|
2,693
|
|
|
1,384
|
|
|
1,309
|
|
|
94.6
|
%
|
||||||
Change in same store revenue
|
|
|
|
|
|
|
10.2
|
%
|
|
|
|
|
|
|
|
11.6
|
%
|
||||||||||||
Stores in same store revenue calculation
|
|
|
|
|
|
|
108
|
|
|
|
|
|
|
|
|
108
|
|
|
Three Months Ended
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
||||||||||||||||||
|
June 30,
|
|
Change
|
|
June 30,
|
|
Change
|
||||||||||||||||||||||
(dollar amounts in thousands)
|
2019
|
|
2018
|
|
$
|
|
%
|
|
2019
|
|
2018
|
|
$
|
|
%
|
||||||||||||||
Revenues
|
$
|
14,889
|
|
|
$
|
8,692
|
|
|
$
|
6,197
|
|
|
71.3
|
%
|
|
$
|
27,659
|
|
|
$
|
15,677
|
|
|
$
|
11,982
|
|
|
76.4
|
%
|
Gross profit
|
4,409
|
|
|
4,068
|
|
|
341
|
|
|
8.4
|
%
|
|
9,038
|
|
|
7,678
|
|
|
1,360
|
|
|
17.7
|
%
|
||||||
Operating profit
|
1,803
|
|
|
1,909
|
|
|
(106
|
)
|
|
(5.6
|
)%
|
|
3,581
|
|
|
3,165
|
|
|
416
|
|
|
13.1
|
%
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Customer stolen merchandise
|
$
|
33,443
|
|
|
$
|
29,738
|
|
|
$
|
73,189
|
|
|
$
|
64,610
|
|
Other merchandise losses
(1)
|
5,467
|
|
|
9,675
|
|
|
12,304
|
|
|
17,854
|
|
||||
Total merchandise losses
|
$
|
38,910
|
|
|
$
|
39,413
|
|
|
$
|
85,493
|
|
|
$
|
82,464
|
|
(1)
|
Other merchandise losses include unrepairable and missing merchandise, and loss/damage waiver claims.
|
|
Core U.S.
|
|
Acceptance Now Staffed
|
|
Acceptance Now Virtual
|
|
Mexico
|
|
Franchising
|
|
Total
|
||||||||||||
Locations at beginning of period
|
2,158
|
|
|
1,106
|
|
|
96
|
|
|
122
|
|
|
281
|
|
|
3,763
|
|
||||||
New location openings
|
—
|
|
|
81
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
89
|
|
||||||
Conversions and refranchising
|
(57
|
)
|
|
(37
|
)
|
|
37
|
|
|
—
|
|
|
57
|
|
|
—
|
|
||||||
Closed locations
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Merged with existing locations
|
(63
|
)
|
|
(119
|
)
|
|
(29
|
)
|
|
—
|
|
|
—
|
|
|
(211
|
)
|
||||||
Sold or closed with no surviving location
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(7
|
)
|
||||||
Locations at end of period
|
2,035
|
|
|
1,031
|
|
|
112
|
|
|
122
|
|
|
334
|
|
|
3,634
|
|
||||||
Acquired locations closed and accounts merged with existing locations
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||||
Total approximate purchase price of acquired stores
(in millions)
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.1
|
|
|
Payments Due by Period
|
||||||||||||||||||
(in thousands)
|
Total
|
|
2019
|
|
2020-2021
|
|
2022-2023
|
|
Thereafter
|
||||||||||
6.625% Senior Notes
(1)
|
$
|
321,831
|
|
|
$
|
9,697
|
|
|
$
|
312,134
|
|
|
$
|
—
|
|
|
$
|
—
|
|
4.75% Senior Notes
(2)
|
273,750
|
|
|
5,937
|
|
|
267,813
|
|
|
—
|
|
|
—
|
|
|||||
Operating Leases
|
306,882
|
|
|
61,288
|
|
|
176,528
|
|
|
63,173
|
|
|
5,893
|
|
|||||
Total
(3)(4)
|
$
|
902,463
|
|
|
$
|
76,922
|
|
|
$
|
756,475
|
|
|
$
|
63,173
|
|
|
$
|
5,893
|
|
(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
June 30, 2019
, we have recorded
$35.6 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.
|
(4)
|
On July 15, 2019, Rent-A-Center instructed the trustee under the indentures governing the 6.625% and 4.75% senior notes to issue a conditional notice of full redemption to the holders of the outstanding 6.625% and 4.75% senior notes. On August 5, 2019, in connection with the Refinancing, Rent-A-Center irrevocably deposited the redemption price for the 6.625% and 4.75% senior notes with the trustee, and the indentures were satisfied and discharged. The 6.625% and 4.75% senior notes will be redeemed on August 15, 2019, at a price equal to 100% of their principal amount plus accrued and unpaid interest to, but excluding, the redemption date. As a result, Rent-A-Center and its subsidiary guarantors have been released from their respective obligations under the 6.625% and 4.75% senior notes as of August 5, 2019.
|
•
|
create certain liens and enter into certain sale and lease-back transactions;
|
•
|
create, assume, incur or guarantee certain indebtedness;
|
•
|
pay dividends or make other distributions on, or repurchase or redeem, the Company’s capital stock or certain other debt;
|
•
|
make other restricted payments; and
|
•
|
consolidate or merge with, or convey, transfer or lease all or substantially all of the Company’s and its restricted subsidiaries’ assets, to another person.
|
Exhibit No.
|
Description
|
|
|
2.1
|
|
|
|
2.2
|
|
|
|
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
|
|
|
|
10.40
|
|
|
|
10.41
|
|
|
|
10.42*
(1)
|
|
|
|
10.43*
(1)
|
|
|
|
10.44*
(1)
|
|
|
|
10.45*
(1)
|
|
|
|
18.1
|
|
|
|
21.1
|
|
|
|
31.1*
|
|
|
|
31.2*
|
|
|
|
32.1*
|
|
|
|
32.2*
|
|
|
|
101.INS*
|
XBRL Instance Document - The instance document does not appear in the interactive data files because its XBRL tags are embedded within the inline XBRL 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.
|
(1)
|
Schedules and similar attachments have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The registrant hereby undertakes to furnish copies of such omitted materials supplementally upon request by the SEC.
|
|
|
|
|
RENT-A-CENTER, INC.
|
|
|
|
|
|
By:
|
/
S
/ MAUREEN B. SHORT
|
|
|
Maureen B. Short
|
|
|
EVP, Chief Financial Officer
|
1 Year Rent A Center Chart |
1 Month Rent A Center Chart |
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