Rent-A-Center, Inc. Reports Third Quarter 2015 Results

October 26, 2015 at 4:04 PM EDT

Rent-A-Center, Inc. Grows Acceptance Now Location Count by 15 Percent and Consolidated Same Store Sales by 5.2 Percent

PLANO, Texas--(BUSINESS WIRE)--Oct. 26, 2015-- Rent-A-Center, Inc. (the "Company") (NASDAQ/NGS: RCII) today announced results for the quarter ended September 30, 2015.

Highlights on the quarter include the following:

On a GAAP basis, loss per diluted share was $0.08 in the third quarter compared to earnings of $0.49 for the third quarter of the prior year, due primarily to the $34.7 million write-down of smartphones as discussed below
Earnings per diluted share, excluding special items, was $0.47 compared to $0.50 for the third quarter of the prior year (see non-GAAP reconciliation below)
Consolidated total revenues increased 3.6 percent to $791.6 million and same store sales increased 5.2 percent over the prior year
Acceptance Now same store sales increased 24.5 percent, driven by the continued ramp-up of existing locations and the introduction of 90 day option pricing. During the third quarter, 30 Acceptance Now staffed locations and 208 direct locations were opened, 18 staffed locations were merged with existing locations, and three staffed locations were converted to direct locations.
Core U.S. same store sales decreased by 0.2 percent, representing an improvement of 340 basis points compared to prior year. Since the first quarter of 2014, the two-year same store sales comp has improved by 1,100 basis points. The improvement is primarily due to the new smartphone product category and higher merchandise sales, offset by headwinds in oil industry affected markets and continued pressure in the computers and tablets category.
The Company’s operating profit as a percent of total revenues, excluding special items, increased to 6.6 percent, a 50 basis point improvement over the prior year. Adjusted EBITDA increased by 8.5 percent over the prior year (see Table 3 below).
For the nine months ended September 30, the Company generated $249.3 million of cash from operations, capital expenditures totaled $61.1 million, and the Company ended the third quarter with $60.1 million of cash and cash equivalents, and $41.8 million less in debt compared to Q2 2015
The Company declared a dividend of 24 cents per share in the third quarter of 2015, which was paid October 22, 2015

"The third quarter again reinforces our focus on improving returns on our existing assets, in order to fund higher return growth initiatives," said Robert D. Davis, the Chief Executive Officer of Rent-A-Center, Inc. "The Acceptance Now location count increased 15 percent this quarter driven primarily by adding direct locations. While we believe the staffed model will continue to be the gold standard for the industry, given its superior ability to drive volume and profit dollars, our direct channel enables the expansion of our offering to lower volume locations and broadens our scope of potential retailers. We recognize that technology and innovation are critical to compete and we are investing accordingly to continuously enhance our value proposition," Mr. Davis continued.

"Improved profitability trends in the Core U.S. business including a $40 million reduction of store expenses through the third quarter reflect clear progress on implementing the strategic initiatives. The upfront work associated with our flexible labor and sourcing and distribution initiatives is substantially complete and they remain on track for the expected benefits. In order to further optimize our store base, approximately 100 under-performing stores were closed or sold during the quarter. By improving the return profile of existing assets through our strategic initiatives and by optimizing the store base, we are able to reinvest in new technology to support our rapidly growing Acceptance Now business," Mr. Davis concluded.

Progress on initiatives:

Acceptance Now Technology Initiatives - doubled the penetration of online approval via retailer websites as well as the technology to support the seamless application process. Each of these technologies are available in about a third of our staffed locations
Sourcing & Distribution - all products are flowing through the new supply chain, all DCs have been fully sourced with product, and the initiative remains on track to fully realize $25 to 35 million of annual run-rate income statement benefits by the end of 2016
Flexible Labor - our new model has been introduced in approximately 2,100 Core U.S. locations, 5,550 new part-time co-workers have joined the Company, and the initiative remains on track to generate $20 to 25 million of annual run rate savings by mid-2016
Omni-channel initiatives - began pilot of virtual approval on Rentacenter.com and will have full eCommerce capability in 2016
Smartphones - smartphones were approximately 9.0 percent of Core U.S. total store revenues and the locking software is installed on 65 percent of on-rent phones and virtually all of our new phones
New point-of-sale system - the pilot has been expanded and is now in 8.5 precent of Core U.S. stores


SAME STORE SALES
(Unaudited)

Table 1	2015								2014
Period	Core U.S.		Acceptance Now		Mexico		Total		Core U.S.		Acceptance Now		Mexico		Total
Three months ended September 30,	(0.2	)%	24.5	%	5.0	%	5.2	%	(3.6	)%	25.7	%	25.9	%	1.9	%

Note: Same store sales are reported on a constant currency basis beginning in 2015.

Quarterly Operating Performance

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

ACCEPTANCE NOW third quarter revenues of $196.7 million increased 26.6 percent year over year driven by same store sales growth, the introduction of 90 day option pricing, and a 24 percent year over year increase in the number of locations. Gross profit as a percent of total revenue stabilized sequentially, despite being negatively impacted by lower gross profit margin on merchandise sales and a higher mix of merchandise sales primarily due to the popularity of the 90 day option pricing. Labor and other store expenses, as a percent of store revenue, were positively impacted by improved leverage in the business.

CORE U.S. third quarter revenues of $575.4 million decreased 1.4 percent year over year primarily due to the continued rationalization of our Core U.S. store base. Gross profit as a percent of total revenue was negatively impacted by lower gross profit margin on merchandise sales and a higher mix of merchandise sales both primarily due to smartphones. Labor, as a percent of store revenue, was positively impacted by lower store count, labor hour reductions that occurred in the third quarter of 2014, lower workers compensation costs, and the flexible labor overtime initiative. Other store expenses, as a percent of store revenue, were positively impacted by a lower store count, lower gas prices, lower training costs for smartphones, and lower insurance, partially offset by higher product service cost from smartphones. Core U.S. operating profit, as a percent of total revenue, increased 90 basis points.

MEXICO third quarter revenues decreased 24.1 percent driven by currency fluctuations and store closures; however, operating losses improved by $2.1 million.

FRANCHISING third quarter gross profit increased 29.3 percent and operating profit increased by $0.6 million.

Smartphone Write-Down:

During the third quarter, we determined that it was necessary to adjust our smartphone inventory primarily through the write-down of older generation phones, and via the acceleration of secondary market dispositions of excess phone inventory. Upon standing up the category a year ago, we purchased inventory to support new and older technology, and older generation phones fell short of our expectations while newer generation phones exceeded our expectations, resulting in excess phones. In connection with this decision, the company has recorded a $34.7 million pre-tax inventory write-down in cost of sales for the third quarter to account for these actions. Management is currently refining its approach to this profitable product category based upon our initial year of experience in this area.

Non-GAAP Reconciliation

To supplement the Company's financial results presented on a GAAP basis, Rent-A-Center uses the non-GAAP measures ("special items”) indicated in Tables 2 and 3 below, which exclude charges in 2015 for the write-down of smartphones, the loss on the sale of 22 Core U.S. stores to a Franchisee, restructuring charges related to the closure of 65 Core U.S. stores, start-up expenses related to our sourcing and distribution initiative, the loss on the sale of 14 Canadian stores and discrete adjustments to tax reserves. Gains or charges related to sales of stores, store closures, and discrete adjustments to tax reserves will generally recur with the occurrence of these events in the future. The presentation of these financial measures is not in accordance with, or an alternative for, accounting principles generally accepted in the United States and should be read in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP. Rent-A-Center management believes that excluding special items from the GAAP financial results provides investors a clearer perspective of the Company's ongoing operating performance and a more relevant comparison to prior period results.

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

Table 2	Three Months Ended September 30, 2015						Three Months Ended September 30, 2014
	Amount			Per Share			Amount			Per Share
Net earnings (loss)	$	(4,092	)	$	(0.08	)	$	25,925		$	0.49
Special items:
Write-down of smartphones, net of taxes		21,114			0.40			—			—
Other charges, net of taxes		6,615			0.13			5,518			0.10
Vendor settlement credit, net of taxes		—			—			(4,682	)		(0.09	)
Discrete income tax charges		1,178			0.02			—			—
Net earnings excluding special items	$	24,815		$	0.47		$	26,761		$	0.50

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 or to provide clarification. 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.

2015 Guidance

We now expect Q4 EPS to be $0.52 to $0.62 and these projections now equate to full year 2015 guidance of $2.00 to $2.10.

Webcast Information

Rent-A-Center, Inc. will host a conference call to discuss the third quarter results, guidance and other operational matters on Tuesday morning, October 27, 2015, at 8:30 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.

A rent-to-own industry leader, Plano, TX-based, Rent-A-Center, Inc., is 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, and smartphones, under flexible rental purchase agreements with no long-term obligation. The Company owns and operates approximately 2,700 stores in the United States, Mexico, Canada and Puerto Rico, and approximately 1,690 Acceptance Now 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 200 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; factors 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 our business segments; failure to manage the Company's store labor and other store expenses; 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, including the flexible labor and sourcing and distribution initiatives; the Company's ability to successfully implement its new store information management system; the Company’s ability to successfully market smartphones and related services to its customers; the Company's ability to develop and successfully implement virtual or e-commerce capabilities; the Company's ability to execute and the effectiveness of a store consolidation, including the Company's ability to retain the revenue from customer accounts merged into another store location as a result of a 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 retain the revenue associated with acquired customer accounts and enhance the performance of acquired stores; 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 and the Company's ability to protect the integrity and security of individually identifiable data of its customers and employees; 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, 2014, its quarterly report on Form 10-Q for the quarter ended March 31, 2015, and its quarterly report on Form 10-Q for the quarter ended June 30, 2015. 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 3	Three Months Ended September 30,
	2015			2015			2014			2014
							Revised			Revised
(In thousands, except per share data)	Before			After			Before			After
	Special Items			Special Items			Special Items			Special Items
	(Non-GAAP			(GAAP			(Non-GAAP			(GAAP
	Earnings)			Earnings)			Earnings)			Earnings)
Total revenues	$	791,605		$	791,605		$	764,363		$	764,363
Operating profit		52,199	⁽¹⁾		6,565			46,591	⁽²⁾		45,920
Net earnings (loss)		24,815	⁽¹⁾		(4,092	)		26,761	⁽²⁾		25,925
Diluted earnings (loss) per common share	$	0.47	⁽¹⁾	$	(0.08	)	$	0.50	⁽²⁾	$	0.49
Adjusted EBITDA	$	72,178		$	72,178		$	66,509		$	66,509

Reconciliation to Adjusted EBITDA:

Earnings (loss) before income taxes	$	39,862	⁽¹⁾	$	(5,772	)	$	34,810	⁽²⁾	$	34,139
Add back:
Other charges and (credits)		—			34,698			—			(7,072	)
Restructuring charge		—			10,936			—			3,185
Impairment charge		—			—			—			4,558
Interest expense, net		12,337			12,337			11,781			11,781
Depreciation, amortization and write-down of intangibles		19,979			19,979			19,918			19,918
Adjusted EBITDA	$	72,178		$	72,178		$	66,509		$	66,509

⁽¹⁾ Excludes the effects of a $34.7 million pre-tax write-down of smartphones, $4.9 million pre-tax loss on the sale of 22 Core U.S. stores to a franchisee, a $4.3 million pre-tax charge related to the closure of 65 Core U.S. stores, a $1.2 million pre-tax charge for start-up and warehouse closure expenses related to our sourcing and distribution initiative, and a $0.3 million pre-tax loss on the sale of 14 stores in Canada. These charges reduced net loss and net loss per diluted share for the three months ended September 30, 2015, by approximately $27.7 million and $0.53, respectively. Net loss also excludes the effect of $1.2 million of discrete income tax adjustments to reserves that reduced earnings per diluted share by $0.02.

⁽²⁾ Excludes the effects of a $7.1 million pre-tax vendor settlement credit, a $4.6 million pre-tax impairment charge and a $3.2 million pre-tax restructuring charge. These charges reduced net earnings and net earnings per diluted share for the three months ended September 30, 2014, by approximately $0.8 million and $0.01, respectively.



SELECTED BALANCE SHEET HIGHLIGHTS - UNAUDITED

Table 4	September 30,
	2015		2014
(In thousands)			Revised
Cash and Cash Equivalents	$	60,072	$	61,958
Receivables, net		63,252		68,759
Prepaid Expenses and Other Assets		75,538		83,298
Rental Merchandise, net
On Rent		849,234		865,010
Held for Rent		272,225		293,480
Total Assets	$	3,038,956	$	3,082,186

Senior Debt	$	371,625	$	425,135
Senior Notes		542,740		550,000
Total Liabilities		1,636,658		1,705,668
Stockholders' Equity	$	1,402,298	$	1,376,518

Note: During the fourth quarter of 2014, the Company identified immaterial errors that affected receivables, prepaid expenses and other assets, rental merchandise and other balance sheet line items. The correction of these errors resulted in an increase in receivables of $0.5 million, a decrease in prepaid expenses and other assets of $2.3 million, a decrease in on rent merchandise of $2.2 million, an increase in held for rent merchandise of $26.9 million and an increase in total assets of $23.0 million at September 30, 2014. The above corrections resulted in a decrease in total revenue of $5.2 million, an increase in gross profit of $0.3 million and an increase in net income of $0.6 million for the three months ended September 30, 2014.


Rent-A-Center, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED

Table 5	Three Months Ended September 30,
	2015				2014
(In thousands, except per share data)					Revised
Revenues
Store
Rentals and fees	$	683,343			$	675,342
Merchandise sales		80,932				58,477
Installment sales		17,786				17,822
Other		4,475				6,384
Total store revenues		786,536				758,025
Franchise
Merchandise sales		2,456				4,477
Royalty income and fees		2,613				1,861
Total revenues		791,605				764,363
Cost of revenues
Store
Cost of rentals and fees		178,094				174,041
Cost of merchandise sold		82,043				47,569
Cost of installment sales		5,854				5,867
Total cost of store revenues		265,991				227,477
Other charges and (credits)		34,698		⁽³⁾		(7,072	)	⁽⁶⁾
Franchise cost of merchandise sold		2,304				4,200
Total cost of revenues		302,993				224,605
Gross profit		488,612				539,758
Operating expenses
Store expenses
Labor		209,904				218,623
Other store expenses		201,638				208,424
General and administrative expenses		39,590				39,130
Depreciation, amortization and write-down of intangibles		19,979				19,918
Other charges		10,936		⁽⁴⁾		7,743		⁽⁷⁾
Total operating expenses		482,047				493,838
Operating profit		6,565				45,920
Interest expense		12,490				11,981
Interest income		(153	)			(200	)
Earnings (loss) before income taxes		(5,772	)			34,139
Income tax expense (benefit)		(1,680	)	⁽⁵⁾		8,214
NET EARNINGS (LOSS)	$	(4,092	)		$	25,925
Basic weighted average shares		53,060				52,864
Basic loss per common share	$	(0.08	)		$	0.49
Diluted weighted average shares		53,060				53,114
Diluted loss per common share	$	(0.08	)		$	0.49

⁽³⁾ Includes a $34.7 million write-down of smartphones.

⁽⁴⁾ Includes a $4.9 million loss on the sale of 22 Core U.S. stores to a franchisee, a $4.3 million charge related to the closure of 65 Core U.S. stores, a $1.2 million charge for start-up and warehouse closure expenses related to our sourcing and distribution initiative, and a $0.3 million loss on the sale of 14 stores in Canada.

⁽⁵⁾ Includes $1.2 million of discrete adjustments to income tax reserves.

⁽⁶⁾ Includes a $7.1 million vendor settlement credit.

⁽⁷⁾ Includes a $4.6 million impairment charge, a $2.8 million corporate restructuring charge and a $0.4 million restructuring charge related to the consolidation of 150 stores in Q2 2014.

Rent-A-Center, Inc. and Subsidiaries

SEGMENT INFORMATION HIGHLIGHTS - UNAUDITED

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 the Country Manager 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 6	Three Months Ended September 30,
	2015		2014
Revenues			Revised
Core U.S.	$	575,356	$	583,616
Acceptance Now		196,652		155,278
Mexico		14,528		19,131
Franchising		5,069		6,338
Total revenues	$	791,605	$	764,363


Table 7	Three Months Ended September 30,
	2015			2014
Gross profit				Revised
Core U.S.	$	374,214	⁽¹⁾	$	431,689	⁽²⁾
Acceptance Now		102,133			92,378
Mexico		9,500			13,553
Franchising		2,765			2,138
Total gross profit	$	488,612		$	539,758

⁽¹⁾ Includes a $34.7 million write-down of smartphones.
⁽²⁾ Includes a $7.1 million vendor settlement credit.


Table 8	Three Months Ended September 30,
	2015				2014
Operating profit (loss)					Revised
Core U.S.	$	15,700		⁽³⁾	$	63,448		⁽⁴⁾
Acceptance Now		28,901				29,938
Mexico		(2,359	)			(4,529	)
Franchising		1,797				1,168
Total segment operating profit		44,039				90,025
Corporate		(37,474	)			(44,105	)	⁽⁵⁾
Total operating profit	$	6,565			$	45,920

⁽³⁾ Includes a $4.9 million loss on the sale of 22 Core U.S. stores to a franchisee, a $4.3 million charge related to the closure of 65 Core U.S. stores, a $1.2 million charge for start-up and warehouse closure expenses related to our sourcing and distribution initiative, and a $0.3 million loss on the sale of 14 stores in Canada.

⁽⁴⁾ Includes a $0.4 million restructuring charge related to the consolidation of 150 stores.

⁽⁵⁾ Includes a $4.6 million impairment charge and a $2.8 million corporate restructuring charge.



Table 9	Three Months Ended September 30,
	2015		2014
Depreciation, amortization and write-down of intangibles			Revised
Core U.S.	$	11,818	$	13,671
Acceptance Now		836		697
Mexico		1,165		1,714
Franchising		45		49
Total segments		13,864		16,131
Corporate		6,115		3,787
Total depreciation, amortization and write-down of intangibles	$	19,979	$	19,918


Table 10	Three Months Ended September 30,
	2015		2014
Capital expenditures			Revised
Core U.S.	$	6,148	$	5,637
Acceptance Now		921		448
Mexico		16		438
Total segments		7,085		6,523
Corporate		11,171		13,760
Total capital expenditures	$	18,256	$	20,283


Table 11	On Rent at September 30,				Held for Rent at September 30,
	2015		2014		2015		2014
Rental merchandise, net			Revised				Revised
Core U.S.	$	496,524	$	530,569	$	260,563	$	279,923
Acceptance Now		334,167		313,533		6,354		5,779
Mexico		18,543		20,908		5,308		7,778
Total on rent rental merchandise, net	$	849,234	$	865,010	$	272,225	$	293,480


Table 12	September 30,
	2015		2014
Assets			Revised
Core U.S.	$	2,404,391	$	2,519,146
Acceptance Now		410,892		388,317
Mexico		39,923		67,981
Franchising		1,840		2,523
Total segments		2,857,046		2,977,967
Corporate		181,910		104,219
Total assets	$	3,038,956	$	3,082,186


Rent-A-Center, Inc. and Subsidiaries

LOCATION ACTIVITY - UNAUDITED

Table 13	Three Months Ended September 30, 2015
	Core U.S.		Acceptance Now Staffed		Acceptance Now Direct	Mexico	Franchising	Total
Locations at beginning of period	2,803		1,459		12	143	187	4,604
New location openings	—		30		208	—	1	239
Acquired locations remaining open	—		—		—	—	—	—
Conversions	(22	)	(3	)	3	—	22	—
Closed locations
Merged with existing locations	68		18		—	—	—	86
Sold or closed with no surviving location	16		—		—	—	3	19
Locations at end of period	2,697		1,468		223	143	207	4,738
Acquired locations closed and accounts merged with existing locations	7		—		—	—	—	7


Table 14	Three Months Ended September 30, 2014
	Core U.S.	Acceptance Now Staffed	Acceptance Now Direct	Mexico	Franchising	Total
Locations at beginning of period	2,847	1,359	—	176	180	4,562
New location openings	2	55	—	—	14	71
Acquired locations remaining open	1	—	—	—	—	1
Conversions	—	—	—	—	—	—
Closed locations
Merged with existing locations	—	55	—	—	—	55
Sold or closed with no surviving location	9	—	—	—	6	15
Locations at end of period	2,841	1,359	—	176	188	4,564
Acquired locations closed and accounts merged with existing locations	1	—	—	—	—	1

View source version on businesswire.com: http://www.businesswire.com/news/home/20151026006508/en/

Source: Rent-A-Center, Inc.

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