Total Revenues of $1.2 billion, up 13% Pro Forma1
Acima Segment GMV of over $500 million, up 19% Pro Forma1
Rent-A-Center Business Segment Same-Store-Sales up 12%
Diluted EPS of $0.31; Non-GAAP Diluted EPS of $1.52
Repurchased $80 million of common stock year-to-date through October, including
$20 million in the third quarter
Rent-A-Center, Inc. (the “Company” or “Rent-A-Center”) (NASDAQ:RCII) today announced results for the quarter ended September 30, 2021.
“I am pleased to say we had a productive third quarter, delivering strong top line results despite the impact on consumers from the wind down of government COVID-19 relief programs and the global supply chain disruptions. On the strategic front, we made substantial progress toward our long-term objectives, with the Acima FinTech Ecosystem rollout showing early promise and the Rent-A-Center Business advancing its best-in-class omnichannel functionality,” said Mitch Fadel, Chief Executive Officer.
“Today’s consumers are increasingly seeking innovative and disruptive solutions, like frictionless mobile commerce, financial services super-apps, and buy-now-pay-later, that work for them rather than for the benefit of the established system. As one of the most inclusive, flexible, and affordable payment options available, we believe Lease-to-Own is in the early stages of a transformation that will see significant additional consumer adoption over the next few years, especially when enabled with new technology like the Acima Ecosystem.”
“With significant scale in Lease-to-Own and a revolutionary digital commerce platform, the Company is executing on a long-term strategic plan that we believe will drive growth, expand our customer base, and create shareholder value for years to come. Given the strong fundamentals we are seeing and the progress we are making against strategic objectives, we remain confident that the Company will achieve $6 billion of revenue with mid-teens adjusted EBITDA margin by the end of 2023,” concluded Mr. Fadel.
Third Quarter Consolidated Results
- Third quarter 2021 consolidated revenues of $1.2 billion increased 65.9% year-over-year, primarily led by the acquisition of Acima Holdings, LLC (the “Acima Acquisition”), which closed in the first quarter of 2021. On a pro-forma1 basis, revenues grew 13% led by organic growth in the Acima and Rent-A-Center Business segments.
- GAAP operating profit for the third quarter of 2021 was $67.1 million compared to $80.2 million in the prior year period. GAAP net income for the third quarter of 2021 was $21.3 million and included $82.5 million of costs, net of tax, relating to special items described below, compared to $64.0 million of GAAP net income, including $6.4 million of gains relating to special items in the prior year period.
- Adjusted EBITDA in the third quarter of 2021 was $170.2 million and increased 4.1% year-over-year on a pro-forma basis1, with revenue growth …….