io 707 | --- | --- | |------------------------------------|-------| | | | | Rent-A- Center: | | | First Quarter 2022 Earnings Review | | HOIC ENT-A T NOW 2 Disclosures Forward-Looking Statements This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, statements regarding our goals, plans and projections with respect to our operations, financial position and business strategy. Such forward-looking statements g ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38047 Rent-A-Center, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S. Employer incorpor ...

Rent-A-Center, Inc. (RCII) Q1 2022 Earnings Conference Call May 5, 2022 8:30 AM ET Company Participants Brendan Metrano - IR Mitch Fadel - CEO Maureen Short - CFO Conference Call Participants Kyle Joseph - Jefferies Bobby Griffin - Raymond James Jason Haas - Bank of America Anthony Chukumba - Loop Capital Markets John Rowan - Janney Brad Thomas - KeyBanc Capital Markets Carla Casella - JPMorgan Operator Good day, ladies and gentlemen, and thank for standing by. Welcome to the Rent-A-Center First Quarter 202 ...

RENT-A ● , CHOICE d ¯ NOW Rent-A-Center: Raymond James Conference March 2022 | --- | --- | --- | --- | --- | --- | |-------|----------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|---------------------------|---------------------------------------------------------------------------------------|-------| | | | | | | | | | | Our Vision | | | | | | | Be a leading prov ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38047 Rent-A-Center, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S. Employer in ...

Financial Performance - Full year 2021 consolidated revenues reached $46 billion, a 629% increase compared to the previous year, or a 173% increase on a pro forma basis[3] - Adjusted EBITDA for 2021 was $611 million, an 849% increase year-over-year, or a 149% increase on a pro forma basis[3] - Non-GAAP diluted EPS for 2021 was $557, compared to $353 in 2020[3] - Q4 revenues totaled $1171 million, with Rent-A-Center Business contributing $506 million (432%), Acima $612 million (523%), Franchising $38 million (32%), and Mexico $16 million (14%)[17] - Q4 Adjusted EBITDA was $124 million, representing 106% of total revenue[17] Segment Highlights - Acima's Q4 revenues were $612 million, a 123% increase on a pro forma basis[8] - Rent-A-Center Business same store sales increased by 104% year-over-year, and 241% on a 2-year basis[10] - E-commerce revenue for Rent-A-Center Business increased by 179% year-over-year and accounted for 23% of revenue in Q4[10] Strategic Initiatives and Challenges - The company completed the acquisition of Acima, expanding its strategic position and growth opportunities[3] - Macro headwinds, including the end of government pandemic relief programs and high inflation rates, impacted core consumers[5] - Skip/stolen losses for Acima were 118% of revenue in Q4, an increase of 100 bps year-over-year on a pro forma basis[8] - Skip/stolen losses for Rent-A-Center Business were 40% of revenue in Q4, an increase of 140 bps year-over-year[10] 2022 Guidance - The company provided 2022 revenue guidance of $4450 billion to $4600 billion and adjusted EBITDA guidance of $515 million to $565 million[12]

Financial Data and Key Metrics Changes - The company reported revenues of approximately $4.6 billion, an increase of 17% on a pro forma basis, driven by strong organic growth from both the Rent-A-Center Business Segment and the Acima business [9] - Non-GAAP EPS rose to $5.57 from $3.53 in 2020, and a dividend of approximately $1.24 per share was paid out [9] - Fourth quarter revenues reached $1.2 billion, a 63.5% increase year-over-year on a reported basis and a 10.5% increase on a pro forma basis [48] - Adjusted EBITDA for the fourth quarter was $124 million, a 28.2% increase on a reported basis but a 22.5% decrease on a pro forma basis [48] Business Line Data and Key Metrics Changes - The Rent-A-Center segment experienced a revenue growth of 10% with same-store sales growth of 15.4% and a lease portfolio increase of 10.5% [39] - E-commerce revenue grew by 17.9% year-over-year, accounting for 23% of total revenue in the fourth quarter [43] - The Acima segment saw GMV growth of 23% and revenue growth of 22% on a pro forma basis in 2021, but faced challenges in the fourth quarter with GMV growth of only 5% year-over-year [27][31] Market Data and Key Metrics Changes - The macro environment shifted from a tailwind in the first half of 2021 to a headwind in the latter half, impacting consumer spending and payment behavior [12][13] - The company anticipates that macro headwinds will persist through much of 2022, affecting the ability of core customers to access durable goods [18][60] Company Strategy and Development Direction - The company aims to evolve into a leasing and payment solutions platform, focusing on digital growth and enhancing omnichannel capabilities [16][40] - A more measured approach to growth initiatives is being adopted in response to the unfavorable external environment, with a focus on underwriting for yield and loss improvements [19][36] - The company plans to continue investing in technology and talent to support growth initiatives while managing capital allocation prudently [58] Management's Comments on Operating Environment and Future Outlook - Management noted that the external environment has created significant challenges, particularly in the latter part of 2021, leading to higher delinquencies and loss rates [14][15] - The company expects revenue for 2022 to be between $4.450 billion and $4.6 billion, with adjusted EBITDA of $515 million to $565 million [21] - There is uncertainty regarding the macroeconomic environment's impact on business performance, with expectations that the first half of 2022 will be particularly challenging [60] Other Important Information - The company has approximately $360 million remaining on its current share repurchase authorization and a cash balance of $108.3 million [52] - The effective tax rate on a non-GAAP basis was 23.4%, and the diluted share count was 65 million [50] Q&A Session Summary Question: Why didn't the company pre-announce the underperformance? - Management indicated that visibility into the underperformance became clearer only in the weeks leading up to the call, which influenced the decision not to pre-announce [66] Question: What accounts for the divergence in performance between Rent-A-Center and Acima? - The difference is attributed to the underwriting practices at Acima, which did not tighten quickly enough in response to changing macro conditions, leading to higher delinquencies [70][72] Question: What is the average duration of Acima leases and the expected impact on performance? - The average duration of Acima leases is approximately six to eight months, with expectations that the first half of the year will be under pressure due to previous underwriting practices [77] Question: How does the company view the impact of inflation on its business? - Management believes inflation will eventually push more customers into lease-to-own transactions, but currently, the stress on core customers is evident [90] Question: What is the outlook for GMV in the Acima segment? - The company expects mid-single digit declines in GMV due to tighter underwriting practices, but application volumes and new merchant openings remain strong [101][104]

Rent-A-Center, Inc. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38047 (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S. Employer inco ...

Rent-A-Center, Inc. (RCII) Q3 2021 Earnings Conference Call November 4, 2021 8:30 AM ET Company Participants Brendan Metrano - Vice President, Investor Relations Mitch Fadel - Chief Executive Officer Jason Hogg - Executive Vice President, Acima Anthony Blasquez - Executive Vice President, Rent-A-Center Business Maureen Short - Chief Financial Officer Conference Call Participants Bobby Griffin - Raymond James John Rowan - Janney Montgomery Scott Vincent Caintic - Stephens Anthony Chukumba - Loop Capital Mark ...

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