RCII - Rent-A-Center, Inc.

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Rent-A-Center, Inc., together with its subsidiaries, leases household durable goods to customers on a rent-to-own basis. The company operates through four segments: Core U.S., Acceptance Now, Mexico, and Franchising. It offers durable products, such as consumer electronics; appliances; computers, including tablets; smartphones; and furniture, including accessories under rental purchase agreements. The company also provides merchandise on an installment sales basis; and offers the rent-to-own transaction to consumers who do not qualify for financing from the traditional retailer through kiosks within retailer's locations. It operates retail installment sales stores under the Get It Now and Home Choice names; and rent-to-own and franchised rent-to-own stores under the Rent-A-Centre, ColorTyme, and RimTyme names. As of December 31, 2015, the company owned and operated approximately 2,672 stores in the United States, Canada, and Puerto Rico, including 45 retail installment sales stores; 1,444 Acceptance Now kiosk locations in 40 states and Puerto Rico; 532 Acceptance Now direct locations; and 143 stores in Mexico, as well as franchised 227 rent-to-own stores in 31 states under the Rent-A-Center, ColorTyme, and RimTyme names. Rent-A-Center, Inc. was founded in 1986 and is headquartered in Plano, Texas.

 

-30% plunge this morning

Rent-A-Center warns of profit miss
Rent-A-Center Inc. RCII, -30.27% said Tuesday it expects third-quarter earnings per share, on both a GAAP and adjusted basis, of 5 cents to 15 cents. That's well below the FactSet EPS consensus of 39 cents. U.S. same-store sales are expected to be down about 12%, while same-store sales for its Acceptance Now brand stores are expected to be flat. "Following the implementation of our new point-of-sale system, we experienced system performance issues and outages that resulted in a larger than expected negative impact on core sales," said Chief Executive Robert Davis. The company is scheduled to report Q3 results on Oct. 27. Separately, the rent-to-own company said it amended its credit agreement, reducing the fixed charge coverage ratio from 1.50 to 1.00 from 1.75 to 1.00. The stock, which was still inactive in premarket trade, has tumbled 14% year to date through Monday, while the S&P 500SPX, -0.72% has gained 5.9%.