Rent-A-Center, Inc. Reports Fourth Quarter and Year End 2014 Results

Rent-A-Center, Inc. Reports Increases in Fourth Quarter 2014 EPS and Consolidated Same Store Sales

PLANO, Texas - February 02, 2015 - (BUSINESS WIRE) - Rent-A-Center, Inc. (the "Company") (NASDAQ/NGS: RCII) today announced results for the quarter and year ended December 31, 2014.

Highlights on the quarter include the following:

  • On a GAAP basis, earnings per diluted share increased to $0.48 compared to $0.25 for the fourth quarter of 2013. For the full year 2014, earnings per diluted share on a GAAP basis decreased to $1.81 compared to $2.33 in the prior year
  • Earnings per diluted share, excluding special items, increased to $0.50 compared to $0.25 for the fourth quarter of 2013. Earnings per diluted share, excluding special items, decreased to $1.95 compared to $2.33 for the full year 2013 (see non-GAAP reconciliation below). The change was driven primarily by investment in our transformational initiatives, additional cost to support growth in Acceptance Now, and higher skip/stolen losses
  • Consolidated total revenues, excluding special items, increased 4.0 percent to $797 million and same store sales increased 4.7 percent (see non-GAAP reconciliation below)
  • Core U.S. same store sales decreased by 0.6 percent, representing a sequential improvement of 300 basis points and the 4th consecutive quarterly improvement
  • Acceptance Now same store sales increased 28.4 percent, Mexico same store sales increased 17.0 percent, and we opened a net of 47 Acceptance Now locations in the quarter
  • The Company’s operating profit as a percentage of total revenues, excluding special items, improved 160 basis points from 4.5 percent to 6.1 percent (see non-GAAP reconciliation below)
  • For the full year 2014, cash flow from operations was $19.1 million, capital expenditures totaled $83.8 million, and the Company ended the year with $46.1 million of cash and cash equivalents
  • The Company paid a dividend of 23 cents per share in the fourth quarter, and declared a dividend of 24 cents per share to be paid in the first quarter of 2015
  • Progress on initiatives:
    • Smartphones were over 7 percent of Core U.S. total store revenues in the fourth quarter
    • Launched the flexible labor model pilot in November
    • Signed an agreement with NFI, a leading 3rd party logistics provider, as part of our sourcing and distribution initiative
    • Rolled out initial price changes in certain product categories as part of our pricing strategy initiative
    • Implemented our new technology in over 650 existing Acceptance Now manned locations
    • New POS system is fully operational in its first site following the system-wide implementation of the back office solution

"During the fourth quarter, Core U.S. same store sales were essentially flat and Acceptance Now continued to deliver strong same store sales growth. This resulted in total company same store sales of approximately 5 percent for the quarter. In addition, Core U.S. operating profit increased year over year for the first time in many quarters. However, our EPS did not meet our expectations because our margins were not as strong as projected and skip/stolen losses were too high. In short, we did not achieve the desired balance between sales growth and margin improvement that we ideally are seeking through our strategies," said Robert D. Davis, the Chief Executive Officer of Rent-A-Center, Inc.

“As a result, our resolve is strengthened in the pursuit of that balance and the urgency remains high in delivering on the initiatives and results that we have promised. To that end, our focus is on improving operational execution by implementing a new labor model for our Core U.S. stores, developing a new supply chain and implementing a customer-focused value-based pricing strategy. And, in our Acceptance Now business, we are already seeing some progress on getting skip/stolen losses back in line, and we remain excited about the growth prospects for the business, including the much-anticipated rollout of virtual Acceptance Now locations,” Mr. Davis concluded.

             
SAME STORE SALES
(Unaudited)
             
Table 1     2014     2013
Period     Core U.S.     Acceptance Now     Mexico     Total     Core U.S.     Acceptance Now     Mexico     Total
Three months ended March 31,     (6.1 )%     26.1 %     20.3 %     (0.8 )%     (8.7 )%     33.8 %     80.0 %     (4.3 )%
Three months ended June 30,     (4.7 )%     25.1 %     17.0 %     0.6 %     (5.8 )%     32.0 %     61.3 %     (1.6 )%
Three months ended September 30,     (3.6 )%     25.7 %     25.9 %     1.9 %     (5.0 )%     29.3 %     36.2 %     (0.8 )%
Three months ended December 31,     (0.6 )%     28.4 %     17.0 %     4.7 %     (5.5 )%     26.4 %     31.4 %     (1.1 )%
Year ended December 31,     (4.0 )%    

25.5

%    

19.7

%    

1.2

%     (6.3 )%     30.1 %     47.1 %     (2.0 )%
                                                 

Quarterly Operating Performance

Explanations of performance are excluding special items and compared to the prior year unless otherwise noted.

CORE U.S. fourth quarter revenues of $600.5 million decreased 2.4 percent year over year primarily due to the 150 store consolidation completed in the second quarter of 2014. As compared to the prior year, gross profit as a percentage of total revenue was negatively impacted by the introduction of smartphones. Labor, as a percent of store revenue, was positively impacted by the lower store count and health care costs were higher in the prior year due to an increase in large claims during the quarter. Other store expenses, as a percent of store revenue, were favorably impacted by lower gas prices, partially offset by higher skip/stolen losses primarily from smartphones. Core U.S. operating profit, as a percent of total revenue, increased 220 basis points compared to a year ago.

ACCEPTANCE NOW fourth quarter revenues of $169.8 million increased 30.8 percent year over year driven by the increased number of locations and same store sales. As compared to the prior year, gross profit as a percent of total revenue was negatively impacted by more Acceptance Now locations offering 90 day option pricing. Labor, as a percent of store revenue, was positively impacted by improved leverage in the business. Other store expenses, as a percent of store revenue, were negatively impacted by higher skip/stolen losses. Acceptance Now operating profit, as a percent of total revenue, decreased 80 basis points.

MEXICO fourth quarter revenues increased 38.5 percent and operating losses improved by $0.8 million.

FRANCHISING fourth quarter revenues increased 1.6 percent and operating profit increased by $0.9 million.

Other

Depreciation and amortization expense decreased $1.7 million for the quarter due to lower capital expenditures from fewer new store openings year over year.

General and administrative expenses decreased by $4.0 million primarily due to lower incentive compensation expense in the fourth quarter.

Interest expense was $12.7 million, an increase of $1.8 million year over year, driven by increased debt and a higher rate on our senior credit facility.

On a GAAP basis, the effective income tax rate decreased to 27.6 percent in the fourth quarter from 44.8 percent in the prior year. In Q4 2014, the tax rate was positively impacted by credits stemming from the extension of certain tax provisions that were approved by Congress in late December. In Q4 2013, the tax rate was negatively impacted by the reduction of non-deductible goodwill when we sold stores to franchisees as part of our ColorTyme re-branding initiative.

Non-GAAP Reconciliation

Rent-A-Center management believes that excluding special items from the financial results provides investors a clearer perspective of the Company's ongoing operating performance and a more relevant comparison to prior period results. Special items in the fourth quarter of 2014 consist primarily of a reduction in revenue due to consumer refunds as a result of an operating system programming error, additional costs related to the Core U.S. store closures done in the second quarter of 2014, and store closures in Mexico planned to occur in the first quarter of 2015.

Reconciliation of net income to net income excluding special items (in thousands, except per share data):

               
Table 2     Three Months Ended December 31, 2014       Three Months Ended December 31, 2013
      Amount     Per Share       Amount     Per Share
Net income     $ 25,550       $ 0.48         $ 13,237     $ 0.25
Special items, net of taxes:                          
Revenue adjustment       471         0.01                
Vendor settlement charge       189                        
Other charges       269         0.01                
Net income excluding special items     $ 26,479       $ 0.50         $ 13,237     $ 0.25
               
               
Table 3     Year Ended December 31, 2014       Year Ended December 31, 2013
      Amount     Per Share       Amount     Per Share
Net income     $ 96,422       $ 1.81         $ 128,757     $ 2.33
Special items, net of taxes:                          
Revenue adjustment       400         0.01                
Vendor settlement credit, net       (4,630 )       (0.08 )              
Other charges       8,437         0.16                
Finance charges from refinancing       2,853         0.05                
Net income excluding special items     $ 103,482       $ 1.95         $ 128,757     $ 2.33
                           

2015 Outlook

  • 2015 diluted earnings per share are expected to range between $2.05 and $2.30, including 10 to 12 cents dilution related to our Mexico operations
  • We project 2015 consolidated total revenue growth of three to six percent, or between 3.250 billion and 3.350 billion dollars driven by Core Same Store Sales of negative one percent to positive one percent
  • We expect 2015 Acceptance Now total revenues between 800 and 825 million dollars, including
    • Comp Store sales growth of 15 to 20 percent
    • 150 new manned locations
    • 1,150 new unmanned locations generating 2015 revenues of approximately 4 million dollars
    • Conversion of approximately 100 manned locations to unmanned locations
    • Approximately 50 closures
  • Gross profit as a percent of total revenues is expected to be down 50 to 100 basis points
  • Labor is expected to improve by 100 to 150 basis points as a percent of total store revenues
  • Other store expenses are expected to improve 25 to 75 basis points as a percent of total store revenues
  • General and administrative expenses are expected to be between 180 and 200 million dollars
  • Depreciation and amortization is expected to be between 80 and 90 million dollars
  • Capital expenditures are expected to be between 70 to 80 million dollars
  • Annual effective tax rate of 38 percent to 38.5 percent
  • Free cash flow is expected to be approximately 100 million dollars
  • The 2015 guidance does not include the potential impact of any repurchases of common stock the Company may make, changes in future dividends, material changes in outstanding indebtedness, or the potential impact of acquisitions or dispositions that may be completed or occur after February 2, 2015

Longer Term Guidance

  • Annual revenue growth target of three to five percent
  • Operating profit margin as a percent of total revenue improvement of 400 basis points by 2017
  • Target leverage ratio of 2.2x on a debt to EBITDA basis

The Company believes providing earnings per diluted share guidance provides investors the appropriate insight into the Company’s ongoing operating performance.

Guidance Policy

Rent-A-Center, Inc. provides annual guidance as it relates to same store sales, earnings per diluted share, and other key line items and will only provide updates if there is a material change versus the original guidance. Management will not discuss intra-period sales or other key operating results not yet reported as the limited data may not accurately reflect the final results of the period or quarter referenced.

Webcast Information

Rent-A-Center, Inc. will host a conference call to discuss the fourth quarter results, guidance and other operational matters on Tuesday morning, February 3, 2015, at 10:45 a.m. ET. For a live webcast of the call, visit http://investor.rentacenter.com. Certain financial and other statistical information that will be discussed during the conference call will also be provided on the same website.

About Rent-A-Center, Inc.

Rent-A-Center, Inc., headquartered in Plano, Texas, is the largest rent-to-own operator in North America, focused on improving the quality of life for its customers by providing them the opportunity to obtain ownership of high-quality, durable products such as consumer electronics, appliances, computers, furniture and accessories, under flexible rental purchase agreements with no long-term obligation. The Company owns and operates approximately 3,000 stores in the United States, Mexico, Canada and Puerto Rico, and approximately 1,400 Acceptance Now kiosk locations in the United States and Puerto Rico. Rent-A-Center Franchising International, Inc., a wholly owned subsidiary of the Company, is a national franchiser of approximately 190 rent-to-own stores operating under the trade names of "Rent-A-Center", "ColorTyme", and "RimTyme". For additional information about the Company, please visit our website at www.rentacenter.com.

Forward-Looking Statement

This press release and the guidance above contain forward-looking statements that involve risks and uncertainties. Such forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "could," "estimate," "should," "anticipate," or "believe," or the negative thereof or variations thereon or similar terminology. The Company believes that the expectations reflected in such forward-looking statements are accurate. However, there can be no assurance that such expectations will occur. The Company's actual future performance could differ materially from such statements. Factors that could cause or contribute to such differences include, but are not limited to: the general strength of the economy and other economic conditions affecting consumer preferences and spending; economic pressures, such as high fuel costs, affecting the disposable income available to the Company's current and potential customers; changes in the unemployment rate; difficulties encountered in improving the financial performance of the Core U.S. segment; the Company’s ability to develop and successfully execute the competencies and capabilities which are the focus of the Company’s multi-year program designed to transform and modernize the Company’s operations; costs associated with the Company's multi-year program designed to transform and modernize the Company’s operations; the Company’s ability to successfully market smartphones and related services to its customers; the Company's ability to develop and successfully implement digital electronic commerce capabilities; the Company's ability to retain the revenue from customer accounts merged into another store location as a result of the store consolidation plan; the Company's ability to execute and the effectiveness of the store consolidation; rapid inflation or deflation in prices of the Company's products; the Company's available cash flow; the Company's ability to identify and successfully market products and services that appeal to its customer demographic; consumer preferences and perceptions of the Company's brand; uncertainties regarding the ability to open new locations; the Company's ability to acquire additional stores or customer accounts on favorable terms; the Company's ability to control costs and increase profitability; the Company's ability to enhance the performance of acquired stores; the Company's ability to retain the revenue associated with acquired customer accounts; the Company's ability to enter into new and collect on its rental or lease purchase agreements; the passage of legislation adversely affecting the rent-to-own industry; the Company's compliance with applicable statutes or regulations governing its transactions; changes in interest rates; adverse changes in the economic conditions of the industries, countries or markets that the Company serves; information technology and data security costs; the Company's ability to protect the integrity and security of individually identifiable data of its customers and employees; the impact of any breaches in data security or other disturbances to the Company's information technology and other networks; changes in the Company's stock price, the number of shares of common stock that it may or may not repurchase, and future dividends, if any; changes in estimates relating to self-insurance liabilities and income tax and litigation reserves; changes in the Company's effective tax rate; fluctuations in foreign currency exchange rates; the Company's ability to maintain an effective system of internal controls; the resolution of the Company's litigation; and the other risks detailed from time to time in the Company's SEC reports, including but not limited to, its annual report on Form 10-K for the year ended December 31, 2013, and its quarterly reports on Form 10-Q for the quarters ended March 31, 2014, June 30, 2014, and September 30, 2014. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as required by law, the Company is not obligated to publicly release any revisions to these forward-looking statements to reflect the events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.

     

Rent-A-Center, Inc. and Subsidiaries

 
STATEMENT OF EARNINGS HIGHLIGHTS - UNAUDITED
     
Table 4   Three Months Ended December 31,
    2014         2014     2013
                    Revised
(In thousands, except per share data)   Before         After      
    Special Items         Special Items      
    (Non-GAAP         (GAAP     (GAAP
    Earnings)         Earnings)     Earnings)
Total Revenues   $ 797,124  

(1)

    $ 796,534     $ 766,175
Operating Profit     48,856           47,694       34,669
Net Earnings     26,479  

(1)

      25,550       13,237
Diluted Earnings per Common Share   $ 0.50  

(1)

    $ 0.48     $ 0.25
Adjusted EBITDA   $ 75,823         $ 75,823     $ 63,301
Reconciliation to Adjusted EBITDA:                    
Earnings Before Income Taxes   $ 36,457  

(1)

    $ 35,295     $ 23,970
Add back:                    
Revenue adjustment               590      
Vendor settlement charge               236      
Other charges               336      
Interest expense, net     12,399           12,399       10,699
Depreciation, amortization and write-down of intangibles     26,967           26,967       28,632
Adjusted EBITDA   $ 75,823         $ 75,823     $ 63,301
                           

 

(1)   Excludes the effects of a $0.2 million pre-tax vendor settlement charge, $0.3 million of pre-tax restructuring charges and a $0.6 million pre-tax reduction of revenue due to consumer refunds as a result of an operating system programming error. These charges reduced net earnings and net earnings per diluted share for the three months ended December 31, 2014, by approximately $0.9 million and $0.02, respectively.
     

 

       
Table 5     Twelve Months Ended December 31,
      2014         2014     2013
                      Revised
(In thousands, except per share data)     Before         After      
      Special Items         Special Items      
      (Non-GAAP         (GAAP     (GAAP
      Earnings)         Earnings)     Earnings)
Total Revenues     $ 3,158,386  

(2)

    $ 3,157,796       $ 3,094,018
Operating Profit       199,672           193,462         247,009
Net Earnings       103,482  

(2)

      96,422         128,757
Diluted Earnings per Common Share     $ 1.95  

(2)

    $ 1.81       $ 2.33
Adjusted EBITDA     $ 287,071         $ 287,071       $ 334,989
Reconciliation to Adjusted EBITDA:                      
Earnings Before Income Taxes     $ 152,776  

(2)

    $ 142,353       $ 208,196
Add back (subtract):                      
Revenue adjustment                 590        
Vendor settlement credit, net                 (6,836 )      
Other charges                 12,456        
Finance charges from refinancing                 4,213        
Interest expense, net       46,896           46,896         38,813
Depreciation, amortization and write-down of intangibles       87,399           87,399         87,980
Adjusted EBITDA     $ 287,071         $ 287,071       $ 334,989
                               

 

(2)   Excludes the effects of a $6.8 million pre-tax vendor settlement credit, a $7.9 million pre-tax restructuring charge, a $4.6 million pre-tax impairment charge, a $0.6 million pre-tax reduction of revenue due to consumer refunds as a result of an operating system programming error and a $4.2 million pre-tax refinancing charge. These charges reduced net earnings and net earnings per diluted share for the twelve months ended December 31, 2014, by approximately $7.1 million and $0.14, respectively.
     

 

 

   

SELECTED BALANCE SHEET HIGHLIGHTS - UNAUDITED

     
Table 6   December 31,
    2014     2013
(In thousands)         Revised
Cash and Cash Equivalents   $ 46,126     $ 42,274
Receivables, net     65,492       59,178
Prepaid Expenses and Other Assets     211,922       78,471
Rental Merchandise, net          
On Rent     960,414       913,476
Held for Rent     277,442       210,722
Total Assets   $ 3,276,969     $ 3,018,175
           
Senior Debt   $ 492,813     $ 366,275
Senior Notes     550,000       550,000
Total Liabilities     1,887,574       1,682,306
Stockholders' Equity   $ 1,389,395     $ 1,335,869
               

Note: During the fourth quarter of 2014, the Company revised its 2013 balance sheet and its statements of earnings for the three- and twelve-month periods ended December 31, 2013, to correct immaterial errors from prior years that resulted in an understatement of accrued liabilities, an overstatement of held for rent merchandise and an understatement of receivables. The correction resulted in an increase in accrued liabilities of $10.8 million, a decrease in on rent merchandise of $1.1 million and an increase in receivables of $0.5 million at December 31, 2013. The above corrections resulted in increases to net income of $0.2 million and $0.5 million for the three- and twelve-month periods ended December 31, 2013, respectively. The statements of earnings for the three-month periods ended March 31, 2014, June 30, 2014, and September 30, 2014, will be revised in future filings to increase (decrease) net earnings by $(1.6) million, $0.1 million and $0.6 million, respectively.

               
Rent-A-Center, Inc. and Subsidiaries
 
CONSOLIDATED STATEMENTS OF EARNINGS - UNAUDITED
               
Table 7     Three Months Ended December 31,       Year Ended December 31,
      2014     2013       2014     2013
(In thousands, except per share data)           Revised             Revised
Revenues                    
Store                          
Rentals and fees     $ 697,550       $ 683,380         $ 2,745,828       $ 2,695,895  
Merchandise sales       64,591         51,582           290,739         278,753  
Installment sales       21,545         20,165           75,198         71,475  
Other       5,573         3,889           19,949         18,133  
Total store revenues       789,259         759,016           3,131,714         3,064,256  
Franchise                          
Merchandise sales       5,591         6,015           19,236         24,556  
Royalty income and fees       1,684         1,144           6,846         5,206  
Total revenues       796,534         766,175           3,157,796         3,094,018  
Cost of revenues                          
Store                          
Cost of rentals and fees       180,738         173,128           704,595         676,674  
Cost of merchandise sold       57,221         40,303           231,520         216,206  
Cost of installment sales       8,056         7,228           26,084         24,541  
Total cost of store revenues       246,015         220,659           962,199         917,421  
Vendor settlement charge (credit)       236                   (6,836 )        
Franchise cost of merchandise sold       5,252         5,563           18,070         23,104  
Total cost of revenues       251,503         226,222           973,433         940,525  
Gross profit       545,031         539,953           2,184,363         2,153,493  
Operating expenses                          
Store expenses                          
Labor       222,099         237,451           888,929         881,671  
Other store expenses       210,451         197,734           839,801         789,212  
General and administrative expenses       37,484         41,467           162,316         147,621  
Depreciation, amortization and write-down of intangibles       26,967         28,632           87,399         87,980  
Other charges       336                   12,456          
Total operating expenses       497,337         505,284           1,990,901         1,906,484  
Operating profit       47,694         34,669           193,462         247,009  
Finance charges from refinancing                         4,213          
Interest expense       12,665         10,855           47,843         39,628  
Interest income       (266 )       (156 )         (947 )       (815 )
Earnings before income taxes       35,295         23,970           142,353         208,196  
Income tax expense       9,745         10,733           45,931         79,439  
NET EARNINGS     $ 25,550       $ 13,237         $ 96,422       $ 128,757  
Basic weighted average shares       52,917         52,946           52,850         54,804  
Basic earnings per common share     $ 0.48       $ 0.25         $ 1.82       $ 2.35  
Diluted weighted average shares       53,294         53,247           53,126         55,162  
Diluted earnings per common share     $ 0.48       $ 0.25         $ 1.81       $ 2.33  
                                           

Rent-A-Center, Inc. and Subsidiaries

Segment Information Highlights - Unaudited

On January 1, 2014, the Company realigned its reporting structure to include its Canadian stores in the Core U.S. segment, which were previously reported in the International segment. The accompanying prior-year amounts and store counts have been revised to reflect this change, and we now refer to the segment formerly reported as "International" as "Mexico" since only that country's results are reported therein.

During the fourth quarter of 2014, management reevaluated its operating segments and segment reporting, and determined that the chief operating decision makers relied more heavily on operating profit before corporate allocations when evaluating segment performance than operating profit after corporate allocations. In the following tables, segment operating profit is presented before corporate allocations. Corporate costs, which are primarily costs incurred at our U.S. corporate headquarters, are reported separately to reconcile to operating profit reported in the consolidated statements of operations. The costs incurred at our Mexico field support center are reported in the Mexico segment because our Executive Vice President of Mexico Operations is responsible for Mexico's operations and its field support center. The Franchising segment's corporate costs are reported in the Franchising segment because the President of RAC Franchising International is responsible for that segment's operations and corporate functions. Certain corporate assets used to support our Core U.S., Acceptance Now and Mexico segments, including the land and building in which the corporate headquarters are located and related property assets, cash and prepaid expenses were also allocated historically to these operating segments based on segment revenue. In the following tables, corporate assets are reported separately to reconcile to the consolidated balance sheets. Management believes that these changes provide investors with a more precise view of field operations and corporate costs that accurately aligns with management's view of the business.

 

               
Table 8     Three Months Ended December 31,       Year Ended December 31,
      2014     2013       2014     2013
Revenues           Revised             Revised
Core U.S.     $ 600,515     $ 615,138       $ 2,414,659     $ 2,527,660
Acceptance Now       169,188       129,763         644,853       489,425
Mexico       19,556       14,115         72,202       47,171
Franchising       7,275       7,159         26,082       29,762
Total revenues     $ 796,534     $ 766,175       $ 3,157,796     $ 3,094,018
               
               
Table 9     Three Months Ended December 31,       Year Ended December 31,
      2014     2013       2014     2013
Gross profit           Revised             Revised
Core U.S.     $ 432,294     $ 447,573       $ 1,753,269     $ 1,822,243
Acceptance Now       97,375       80,597         372,012       290,647
Mexico       13,339       10,187         51,070       33,945
Franchising       2,023       1,596         8,012       6,658
Total gross profit     $ 545,031     $ 539,953       $ 2,184,363     $ 2,153,493
                           

 

               
Table 10     Three Months Ended December 31,       Year Ended December 31,
      2014     2013       2014     2013
Operating profit (loss)           Revised             Revised
Core U.S.     $ 67,864       $ 56,113         $ 264,967       $ 311,301  
Acceptance Now       26,203         21,531           112,918         89,075  
Mexico       (5,033 )       (5,667 )         (21,961 )       (22,828 )
Franchising       1,104         209           3,295         1,853  
Total segment operating profit (loss)       90,138         72,186           359,219         379,401  
Corporate       (42,444 )       (37,517 )         (165,757 )       (132,392 )
Total operating profit     $ 47,694       $ 34,669         $ 193,462       $ 247,009  
               
               
Table 11     Three Months Ended December 31,       Year Ended December 31,
      2014     2013       2014     2013
Depreciation, amortization and write-down of intangibles           Revised             Revised
Core U.S.     $ 19,548       $ 22,173         $ 61,555       $ 64,042  
Acceptance Now       897         651           2,917         2,287  
Mexico       1,641         1,525           6,683         5,450  
Franchising       49         19           184         79  
Total segments       22,135         24,368           71,339         71,858  
Corporate       4,832         4,264           16,060         16,122  
Total depreciation, amortization and write-down of intangibles     $ 26,967       $ 28,632         $ 87,399       $ 87,980  
               
               
Table 12     Three Months Ended December 31,       Year Ended December 31,
      2014     2013       2014     2013
Capital expenditures           Revised             Revised
Core U.S.     $ 7,900       $ 11,600         $ 31,228       $ 44,715  
Acceptance Now       1,302         768           3,833         3,047  
Mexico       238         2,864           4,164         11,537  
Franchising                                  
Total segments       9,440         15,232           39,225         59,299  
Corporate       12,612         19,374           44,560         49,068  
Total capital expenditures     $ 22,052       $ 34,606         $ 83,785       $ 108,367  
               
               
Table 13     On Rent at December 31,       Held for Rent at December 31,
      2014     2013       2014     2013
            Revised             Revised
Rental merchandise, net                          
Core U.S.     $ 593,945       $ 611,375         $ 264,211       $ 195,926  
Acceptance Now       345,703         284,421           4,897         3,837  
Mexico       20,766         17,680           8,334         10,959  
Total on rent rental merchandise, net     $ 960,414       $ 913,476         $ 277,442       $ 210,722  
                                           

 

       
Table 14     December 31,
      2014     2013
Assets           Revised
Core U.S.     $ 2,519,771     $ 2,479,297
Acceptance Now       420,660       358,305
Mexico       59,841       69,826
Franchising       2,604       1,688
Total segments       3,002,876       2,909,116
Corporate       274,093       109,059
Total assets     $ 3,276,969     $ 3,018,175
                 

 

       
Rent-A-Center, Inc. and Subsidiaries
 
LOCATION ACTIVITY - UNAUDITED
       
Table 15     Three Months Ended December 31, 2014
      Core U.S.     Acceptance Now     Mexico     Franchising     Total
Locations at beginning of period     2,841     1,359     176     188     4,564
New location openings         69     1     7     77
Acquired locations remaining open     4                 4
Closed locations                              
Merged with existing locations         22             22
Sold or closed with no surviving location     21             8     29
Locations at end of period     2,824     1,406     177     187     4,594
Acquired locations closed and accounts merged with existing locations     6                 6
       
       
Table 16     Three Months Ended December 31, 2013
      Core U.S.     Acceptance Now     Mexico     Franchising     Total
Locations at beginning of period     2,992     1,254     150     213     4,609
New location openings     22     91     1     31     145
Acquired locations remaining open     35                 35
Closed locations                              
Merged with existing locations     7     13             20
Sold or closed with no surviving location     32     7         65     104
Locations at end of period     3,010     1,325     151     179     4,665
Acquired locations closed and accounts merged with existing locations     20                 20
       
       
Table 17     Year Ended December 31, 2014
      Core U.S.     Acceptance Now     Mexico     Franchising     Total
Locations at beginning of period     3,010     1,325     151     179     4,665
New location openings     10     209     31     30     280
Acquired locations remaining open     6                 6
Closed locations                              
Merged with existing locations     163     127     5         295
Sold or closed with no surviving location     39     1         22     62
Locations at end of period     2,824     1,406     177     187     4,594
Acquired locations closed and accounts merged with existing locations     13                 13
       
       
Table 18     Year Ended December 31, 2013
      Core U.S.     Acceptance Now     Mexico     Franchising     Total
Locations at beginning of period     3,008     966     90     224     4,288
New location openings     37     411     63     40     551
Acquired locations remaining open     47                 47
Closed locations                              
Merged with existing locations     46     44     2         92
Sold or closed with no surviving location     36     8         85     129
Locations at end of period     3,010     1,325     151     179     4,665
Acquired locations closed and accounts merged with existing locations     38                 38

SOURCE Rent-A-Center, Inc.

Contact:

Maureen Short
Rent-A-Center, Inc.
972-801-1899
Senior Vice President - Finance
Investor Relations and Treasury
maureen.short@rentacenter.com

 

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