Profile: Rent-A-Center Inc (RCII.O)
5 Mar 2015
Rent-A-Center, Inc., incorporated on November 26, 2002, is a rent-to-own operator in North America. It provides customers the ownership of products, such as consumer electronics, appliances, computers, furniture and accessories, under rental purchase agreements with no long-term obligation. The Company operates in four segments: Core U.S., Acceptance Now, International and Franchising.
The Core U.S. segment consists of company-owned stores located in the United States and Puerto Rico. As of December 31, 2013, the Core U.S. segment contributed approximately 81% of its net revenue. It has launched a multi-year program designed to transform its operations company-wide in order to improve the the Core U.S. segment while continuing to support its Acceptance Now and International segments. As of December 31, 2013, the Company operated approximately 2,992 Company-owned stores nationwide and in Puerto Rico, including 45 retail installment sales stores under the names Get It Now and Home Choice.
The Company provides an onsite rent-to-own option at a third-party retailer’s location under Acceptance Now segment. The Company buys the inventory item directly from the retailer and future rental payments are generally made at the retailer’s location. Each Acceptance Now kiosk location typically consists of an area with a computer, desk and chairs. It occupies the space without charge by agreement with each retailer. It relies on its third-party retail partners to deliver merchandise rented by the customer. Merchandise returned from an Acceptance Now kiosk location is offered for rent at one of its Core U.S. rent-to-own stores. As of December 31, 2013, approximately 22% of the total revenues of the Acceptance Now segment originated at its Acceptance Now kiosks located in stores operated by a nationwide furniture retailer. As of December 31, 2013, the Company operated approximately 1,325 kiosk locations inside furniture, electronics and appliance retailers located in 38 states and Puerto Rico.
The Company’s International segment consists of company-owned rent-to-own stores in Mexico and Canada. As of December 31, 2013, the Company operated 151 stores after adding 61 rent-to-own store locations in Mexico. It operates 18 stores in Canada.
The Company’s franchised stores use Rent-A-Center’s, ColorTyme’s or RimTyme’s trade names, service marks, trademarks and logos. The Franchising segment’s primary source of revenue is the sale of rental merchandise to its franchisees who, in turn, offer the merchandise to the general public for rent or purchase under a rent-to-own transaction. As of December 31, 2013, the Franchising segment franchised 179 stores in 30 states operating under the Rent-A-Center (92 stores), ColorTyme (61 stores) and RimTyme (26 stores) names. These rent-to-own stores offer products such as consumer electronics, appliances, computers, furniture and accessories, wheels and tires.
Consumer electronic products offered by its stores include high definition televisions, home theater systems, video game consoles and stereos from manufacturers such as LG, Samsung, Sony, Toshiba and Vizio. The Company also offers appliances manufactured by Whirlpool, including refrigerators, freezers, washing machines, dryers and ranges. It offers desktop, laptop and tablet computers from Acer, Apple, Asus, Dell, Hewlett-Packard, Samsung, Sony and Toshiba. It offers a range of furniture products, including dining room, living room and bedroom furniture featuring a number of styles, materials and colors. It provides furniture made by Albany, Ashley, England, Klaussner, Lane, Standard and Welton. Accessories include lamps and tables and are rented as part of a package of items, such as a complete room of furniture.
5501 Headquarters Drive
PLANO TX 75024