Financial Performance - Consolidated revenue for Q3 2024 was $1,068.9 million, representing a year-over-year increase of 9.2%[13] - Net income for Q3 2024 was $30.9 million, up $26.5 million compared to the previous year, with a net profit margin of 2.9%, an increase of 250 basis points year-over-year[13] - Adjusted EBITDA for Q3 2024 was $116.9 million, reflecting a 10.3% increase year-over-year, with an adjusted EBITDA margin of 10.9%[13] - Free cash flow for Q3 2024 was $88.3 million, compared to $63.2 million in Q3 2023[13] - The company achieved a gross profit of $511.086 million in Q3 2024, compared to $497.166 million in Q3 2023[36][38] - Total revenue for the three months ended September 30, 2024, was $1,068.9 million, an increase from $475.2 million in the previous year[46] - Rentals and fees contributed $877.8 million to total revenue, with Acima generating $442.5 million and Rent-A-Center $417.3 million[46] - Total cost of revenues was $557.8 million, with the cost of rentals and fees at $342.4 million[46] - Operating expenses totaled $441.0 million, with operating labor expenses at $152.6 million and non-labor operating expenses at $196.0 million[46] - The company reported a total of $150.8 million in merchandise sales, with Acima at $123.3 million and Rent-A-Center at $26.7 million[46] - The cost of merchandise sold was $191.9 million, with Acima at $163.1 million and Rent-A-Center at $28.3 million[46] - Installment sales generated $14.4 million, with Rent-A-Center contributing $14.4 million and no sales from Acima[46] Debt Management - The company reduced debt by $81 million in Q3 2024, ending the quarter with a net leverage ratio of 2.6x, down from 2.8x in Q2 2024[27] - Total Debt decreased from $1,335 million in Q2 2024 to $1,254.5 million in Q3 2024[48] - Net Debt reduced from $1,263 million in Q2 2024 to $1,179.3 million in Q3 2024[48] - The company continues to focus on improving its leverage metrics and operational efficiency[48] - Future outlook includes maintaining a strong focus on debt reduction and enhancing EBITDA performance[48] Operational Highlights - Acima's GMV increased by 13.0% year-over-year in Q3 2024, driven by growth in application volume and retailer network expansion[17] - Rent-A-Center reported revenue of $458.7 million, a 1.1% increase year-over-year, with same-store sales up 2.6%[21] - Year-over-year revenue growth observed at both Acima and Rent-A-Center (RAC) with four consecutive quarters of double-digit GMV growth at Acima[33] - RAC net earnings margin improved by 90 basis points year-over-year, while EBITDA margin improved by 130 basis points year-over-year[33] - Adjusted EBITDA for Q3 2024 was $75.275 million for Acima and $74.651 million for RAC, reflecting strong operational performance[40] Strategic Initiatives - The current full-year 2024 guidance for consolidated revenues is projected between $4.20 billion and $4.30 billion[22] - The company plans to enhance digital capabilities and optimize customer experience as part of its strategic priorities for 2024[10] - The company is focused on optimizing store count and expanding franchising stores in the New York area[33] - Targeted refinement in lease charge-offs and delinquency trends at Acima and RAC, responding to tightening from traditional lenders[34] - The company plans to supplement capital expenditures with dividends, debt reduction, and a buyback program[34] - The company is leveraging best practices in risk management to navigate challenging macroeconomic conditions[34] Cash Flow and Capital Expenditures - Free cash flow for Q3 2024 was $88.257 million, up from $63.209 million in Q3 2023, supporting future investments[45] - Capital expenditures for the quarter were $17.9 million, with Acima contributing $0.2 million and Rent-A-Center $10.1 million[46] - Cash (unrestricted) increased slightly from $72 million in Q2 2024 to $75.2 million in Q3 2024[48]
RENT-A-CENTER(RCII) - 2024 Q3 - Quarterly Results