Revenue Growth - Consolidated revenues increased by approximately $267.0 million for the nine months ended September 30, 2024, compared to the same period in 2023[128]. - Total revenues increased by $89.8 million, or 9.2%, to $1,068.9 million for the three months ended September 30, 2024, compared to the same period in 2023[138]. - Total revenue for the nine months ended September 30, 2024, increased by $267.0 million, or 9.0%, to $3,241.3 million compared to the same period in 2023[149]. - The Acima segment's revenues increased by $256.9 million, or 18.0%, to $1,680.3 million for the nine months ended September 30, 2024, driven by higher rentals and fees revenues[161]. - Revenues in the Rent-A-Center segment increased by approximately $14.6 million for the nine months ended September 30, 2024, driven by a 1.9% increase in same store sales[131]. - Mexico segment revenues increased by 8.9% for the nine months ended September 30, 2024, contributing to a gross profit increase of 10.2%, or $4.0 million[132]. - Revenues for the Mexico segment decreased by $612,000 (3.1%) to $19,642,000 for the three months ended September 30, 2024, while increasing by $4,939,000 (8.9%) to $60,465,000 for the nine months ended September 30, 2024 compared to the same periods in 2023[167]. Profitability - Gross profit rose by approximately $62.5 million during the same period, primarily driven by the Acima segment's performance[128]. - Gross profit increased by $13.9 million, or 2.8%, to $511.1 million for the three months ended September 30, 2024, with a gross profit margin of 47.8%[142]. - Gross profit increased by $62.5 million, or 4.1%, to $1,572.1 million for the nine months ended September 30, 2024, with gross profit as a percentage of total revenue decreasing to 48.5% from 50.8% in the prior year[153]. - Operating profit for the Acima segment increased by approximately $10.8 million, supported by a gross profit increase of $48.6 million[130]. - Operating profit increased by $12.0 million, or 20.7%, to $70.1 million for the three months ended September 30, 2024, with an operating profit margin of 6.6%[147]. - Operating profit increased by $105.5 million to $212.5 million for the nine months ended September 30, 2024, representing an operating profit margin of 6.6%, up from 3.6% in the same period of 2023[158]. - Operating profit for the Mexico segment decreased by $240,000 (21.4%) to $1,124,000 for the three months ended September 30, 2024, while increasing by $722,000 (21.1%) to $4,139,000 for the nine months ended September 30, 2024 compared to the same periods in 2023[170]. Expenses - Non-labor operating expenses increased by $44.5 million, general and administrative expenses by $9.8 million, and operating labor by $6.5 million during the nine months ended September 30, 2024[128]. - Cost of rentals and fees increased by $45.6 million, or 15.4%, to $342.4 million for the three months ended September 30, 2024, representing 39.0% of rentals and fees revenue[139]. - Cost of rentals and fees rose by $122.4 million, or 13.8%, to $1,008.1 million for the nine months ended September 30, 2024, compared to $885.7 million for the same period in 2023[151]. - Non-labor operating expenses rose by $44.5 million, or 7.8%, to $613.8 million for the nine months ended September 30, 2024, with a slight decrease in the percentage of total revenue to 19.4% from 19.7%[155]. - General and administrative expenses increased by $9.8 million, or 6.5%, to $160.2 million for the nine months ended September 30, 2024, with expenses as a percentage of total revenue decreasing to 4.9% from 5.1%[156]. Cash Flow and Investments - Cash flow from operations was $166.7 million for the nine months ended September 30, 2024, with cash and cash equivalents of $85.1 million and outstanding indebtedness of $1.3 billion[134]. - Operating cash flow generated was $166.7 million for the nine months ended September 30, 2024, a decrease of $53.2 million from $219.9 million for the same period in 2023[175]. - Cash used in investing activities decreased to $27.3 million for the nine months ended September 30, 2024, compared to $36.2 million for the same period in 2023[176]. - Capital expenditures increased to $44.2 million for the nine months ended September 30, 2024, compared to $36.2 million for the same period in 2023[180]. Dividends and Shareholder Returns - A quarterly cash dividend of $0.37 per share was approved for the fourth quarter of 2024, paid on October 22, 2024[115]. Market Risks - The company is exposed to market risk from foreign exchange rate fluctuations of the Mexican peso to the U.S. dollar, affecting the financial position and operating results of its stores in Mexico[198]. - A hypothetical 1.0% increase or decrease in market interest rates would result in an additional $8.0 million annualized pre-tax charge or credit to the Condensed Consolidated Statements of Operations[197]. - The company has not entered into any interest rate swap agreements as of September 30, 2024[197]. Other Financial Metrics - Merchandise losses in Acima locations due to LCOs were approximately 9.5% for the nine months ended September 30, 2024, compared to 9.1% for the same period in 2023[163]. - Income tax expense increased by $11.3 million to $30.7 million for the nine months ended September 30, 2024, primarily due to increased earnings before income taxes[159]. - Total merchandise losses increased to $86,373,000 for the three months ended September 30, 2024, compared to $75,278,000 for the same period in 2023[180]. - As of September 30, 2024, the company recorded $0.5 million in uncertain tax positions, representing potential future cash liability[192]. - The company had $450 million in senior unsecured notes outstanding at a fixed interest rate of 6.375% as of September 30, 2024[197]. - The company had $804.5 million outstanding under the Term Loan Facility, with interest rates indexed to the Term SOFR rate[197]. - As of September 30, 2024, the total remaining obligation for existing store lease contracts was approximately $321.1 million[189]. - The total remaining minimum obligation for existing Rent-A-Center vehicle lease contracts was approximately $4.2 million as of September 30, 2024[190]. - The total remaining obligation for existing Mexico vehicle lease contracts was approximately $3.7 million as of September 30, 2024[191].
RENT-A-CENTER(RCII) - 2024 Q3 - Quarterly Report