) announced the opening of a new store in Circleville, Ohio. The
company conducts operations through 167 locations in Ohio.
The move reflects the company's strategic approach of
leveraging an extensive network of stores to effectively
penetrate into its target markets, which in turn facilitates it
to generate healthy sales and gain competitive advantage over its
) and Advance America.
During the recently concluded quarter, the largest rent-to-own
operator in the U.S, opened 6 new Core U.S. locations, acquired 6
stores and consolidated 10 stores with existing locations,
bringing the total store count to 2,974. The company also opened
112 RAC Acceptance stores, consolidated 10 stores with existing
locations and closed 1, resulting in 1,254 stores.
Twenty two international locations were opened and 2 stores
consolidated with existing locations during the quarter, bringing
the count to 168 stores. Rent-A-Center Franchising International,
which is a wholly owned subsidiary of Rent-A-Center, added 4 new
locations and closed 12 locations, with the total store count
remaining at 213.
For 2013, management plans to open approximately 60
rent-to-own locations in Mexico. Moreover, the company aims at
about 365 domestic RAC Acceptance kiosk additions.
The company also recently completed its $200 million
accelerated share repurchase activity that was earlier announced
on May 2, 2013. The company now has $255.2 million remaining at
its disposal under its $1.25 billion share buyback authorization.
The accelerated buyback program was also a part of the
Rent-A-Center offers consumer electronics, appliances and
furniture products under rental purchase schemes that allow
customers to own the merchandise upon completion of the rental
period. Due to continued tightening of the credit market,
customers see rent-to-own as a more flexible and viable option
compared to credit. However, the sluggish recovery and a fragile
job market may make customers reluctant to enter new
Currently, Rent-A-Center holds a Zacks Rank #5 (Strong Sell),
highlighting the company's lower-than-expected third-quarter 2013
results and trimmed outlook. The quarterly earnings came in at 51
cents a share that missed the Zacks Consensus Estimate of 63
cents, and fell 23.9% from the prior-year quarter. Management now
envisions 2013 earnings in the band of $2.80 to $2.85 per share,
down from a range of $3.03 to $3.15 per share forecasted
Other stocks worth considering in the finance-leasing industry
Apollo Investment Corp.
) carrying a Zacks Rank #1 (Strong Buy) and
Horizon Technology Finance Corp.
) holding a Zacks Rank #2 (Buy).
AARONS INC (AAN): Free Stock Analysis Report
APOLLO INV CP (AINV): Free Stock Analysis
HORIZON TECHNOL (HRZN): Free Stock Analysis
RENT-A-CENTER (RCII): Free Stock Analysis
To read this article on Zacks.com click here.