Rent-A-Center reports lower Q4 net earnings, provides outlook for 2013

Rent-A-Center, a chain of rent-to-own stores, offering furniture, appliances, electronics and computers, has reported net earnings of $47.46 million, or $0.81 per diluted share, for the fourth quarter ended December 31, 2012, compared to $49.29 million, or $0.83 per diluted share, for the same quarter ended December 31, 2011. For 2013, the company expects diluted earnings per share to be in the range of $3.25 to $3.4.

Total revenues for the fourth quarter ended December 31, 2012 were $758.38 million, compared to $737.48 million for the same quarter ended December 31, 2011.

Net earnings for the year ended December 31, 2012 were $183.49 million, or $3.09 per diluted share, compared to $164.64 million, or $2.66 per diluted share, for the year ended December 31, 2011.

Total revenues for the year ended December 31, 2012 were $3.08 billion, compared to $2.88 billion for the same period ended December 31, 2011.

For 2013, the company expects EBITDA to be in the range of $415 to $435 million.

"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 Speese, the Company's Chairman and CEO.

"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.