Rent-A-Center, Inc. (the "Company") (NASDAQ/NGS: RCII), the nation's largest rent-to-own operator, today announced revenues and earnings for the quarter and year ended December 31, 2012.
Fourth Quarter 2012 Results
Total revenues for the quarter ended December 31, 2012, were $758.4 million, an increase of $20.9 million from total revenues of $737.5 million for the same period in the prior year. This 2.8% increase in total revenues was primarily due to growth in both the RAC Acceptance and International segments, partially offset by a decrease in the Core U.S. segment. For the quarter ended December 31, 2012, same store sales declined 0.2%, primarily attributable to a decrease in the Core U.S. segment, partially offset by an increase in both the RAC Acceptance and International segments.
Net earnings and net earnings per diluted share for the quarter ended December 31, 2012, were $47.5 million and $0.81, respectively, as compared to $49.3 million and $0.83, respectively, for the same period in the prior year. These results include dilution related to the Company's international growth initiatives of approximately $0.07 per share for the quarter ended December 31, 2012, and $0.06 per share for the same period in the prior year.
Net earnings per diluted share for the quarter ended December 31, 2012, were $0.81, as compared to adjusted net earnings per diluted share of $0.85 for the same period in the prior year, after giving effect to a pre-tax restructuring charge of $1.4 million (approximately $0.02 per share) related to the acquisition of 58 rent-to-own stores in November 2011, as discussed below.
“We are generally pleased with our overall 2012 results as we achieved total revenue growth of 7% and over a 6% increase in net earnings per diluted share to $3.09, both within our annual guidance issued last January,” said Mark E. Speese, the Company's Chairman and Chief Executive Officer. “The core rent-to-own business generated total revenue growth of 1% in 2012,” Speese continued. “In addition, the RAC Acceptance business continued to generate impressive results, with revenue growth of over 77% in 2012 to $343 million, an operating profit for the year of over $28 million and 966 kiosks open at December 31, 2012,” Speese commented. “In 2013, we intend to continue focusing on keeping the core business strong and further investing in our strategic initiatives, while continuing to return value to our shareholders through dividends and opportunistic common stock repurchases,” Speese concluded.