Rent-A-Center (RCII) Provides Estimated Preliminary 2020 Results

Rent-A-Center, Inc. (the "Company" or "Rent-A-Center") (NASDAQ/NGS: RCII) today announced that, in connection with the financing for its previously announced acquisition of Acima Holdings, LLC, it is providing selected preliminary financial information for its full year 2020.

As of the date of this release, the Company has not completed its financial statement reporting process for the fourth quarter or full year. During the course of that process, the Company may identify items that would require it to make adjustments, which may be material, to the information presented below. As a result, the preliminary unaudited financial information included in this release is forward-looking information and is subject to risks and uncertainties, including possible material adjustments to the preliminary financial information.

Preliminary Unaudited Financial Information for Full Year 2020

“We ended 2020 on a strong note, with an expected 5.4 percent increase in full year revenue supported by an estimated 13.7 percent increase in fourth quarter same store sales at the Rent-A-Center Business segment and approximately 25 percent increase in fourth quarter invoice volume for Preferred Lease,” said Mitch Fadel, Chief Executive Officer. “The Preferred Lease gains were achieved despite supply chain constraints in that segment during the quarter.”

“As they have all year, our teams executed extremely well,” continued Mr. Fadel, “with favorable performance in the Rent-A-Center Business in the quarter supporting better than expected improvement in our full year Adjusted EBITDA margin. We look forward to discussing our final results in our fourth quarter earnings call.”

Based on preliminary estimates, the Company expects total 2020 revenues to be approximately $2.814 billion. That compares to its prior guidance (1) for total revenue of $2.795 billion to $2.825 billion for 2020.

On a GAAP basis, the Company expects to generate $234 million to $241 million in operating profit for the full year 2020. Net earnings and diluted earnings per share, on a GAAP basis, are expected to be in the range of $207 million to $213 million and $3.72 to $3.82, respectively.

(*Consensus sees FY20 EPS of $3.44 on revenue of $2.81 billion)

Excluding special items, the Company expects Adjusted EBITDA for the full year 2020 to be in the range of $329 million to $333 million versus its prior guidance (1) of $308 million to $323 million, and diluted earnings per share for 2020 in the range of $3.51 to $3.56 versus its prior guidance (1) of $3.35 to $3.50. The Company ended 2020 with approximately $159 million of cash and cash equivalents and outstanding indebtedness of $197.5 million, as compared to $70.5 million and $239.5 million, respectively, as of December 31, 2019.

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