Breaking News

Tweet TWEET

Rent-A-Center, Inc. Reports Fourth Quarter and Year End 2012 Results

  Rent-A-Center, Inc. Reports Fourth Quarter and Year End 2012 Results

          Total Revenues Increased 2.8% for Quarter and 7% for Year

Revenue for RAC Acceptance Increased Over 77% and for International Over 117%
                                   for Year

      Diluted Earnings per Share of $0.81 for Quarter and $3.09 for Year

 Repurchased Approximately 931,000 Shares of Common Stock for Quarter and 1.8
                               Million for Year

Business Wire

PLANO, Texas -- January 28, 2013

Rent-A-Center, Inc. (the "Company") (NASDAQ/NGS: RCII), the nation's largest
rent-to-own operator, today announced revenues and earnings for the quarter
and year ended December31, 2012.

Fourth Quarter 2012 Results

Total revenues for the quarter ended December31, 2012, were $758.4 million,
an increase of $20.9 million from total revenues of $737.5 million for the
same period in the prior year. This 2.8% increase in total revenues was
primarily due to growth in both the RAC Acceptance and International segments,
partially offset by a decrease in the Core U.S. segment. For the quarter ended
December31, 2012, same store sales declined 0.2%, primarily attributable to a
decrease in the Core U.S. segment, partially offset by an increase in both the
RAC Acceptance and International segments.

Net earnings and net earnings per diluted share for the quarter ended
December31, 2012, were $47.5 million and $0.81, respectively, as compared to
$49.3 million and $0.83, respectively, for the same period in the prior year.
These results include dilution related to the Company's international growth
initiatives of approximately $0.07 per share for the quarter ended December
31, 2012, and $0.06 per share for the same period in the prior year.

Net earnings per diluted share for the quarter ended December31, 2012, were
$0.81, as compared to adjusted net earnings per diluted share of $0.85 for the
same period in the prior year, after giving effect to a pre-tax restructuring
charge of $1.4 million (approximately $0.02 per share) related to the
acquisition of 58 rent-to-own stores in November 2011, as discussed below.

“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 E.
Speese, the Company's Chairman and Chief Executive Officer. “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.

Year Ended December31, 2012 Results

Total revenues for the year ended December31, 2012, were $3.083 billion, an
increase of $200.5 million from total revenues of $2.882 billion in the prior
year. This 7.0% increase in total revenues was primarily due to growth in the
RAC Acceptance segment as well as growth in both the Core U.S. and
International segments. Same store sales for the year ended December31, 2012,
increased 1.4%, primarily attributable to the RAC Acceptance segment.

Net earnings and net earnings per diluted share for the year ended
December31, 2012, were $183.5 million and $3.09, respectively, as compared to
$164.6 million and $2.66, respectively, in the prior year. These results
include dilution related to the Company's international growth initiatives of
approximately $0.33 per share for the year ended December 31, 2012, and $0.14
per share in the prior year.

Net earnings and net earnings per diluted share for the year ended December
31, 2011, were impacted by the following significant items, as discussed
below:

  *A $1.4 million pre-tax restructuring charge, or approximately $0.01 per
    share, related to the acquisition of 58 rent-to-own stores;
  *A $7.6 million pre-tax restructuring charge, or approximately $0.08 per
    share, related to store closings;
  *A $4.9 million pre-tax restructuring charge, or approximately $0.05 per
    share, related to the acquisition of The Rental Store, Inc.;
  *A $7.3 million pre-tax impairment charge, or approximately $0.08 per
    share, related to the discontinuation of the financial services business;
    and
  *A $2.8 million pre-tax litigation expense, or approximately $0.03 per
    share, related to the settlement of wage and hour claims in California.

Collectively, these items reduced net earnings per diluted share by
approximately $0.25 for the year ended December 31, 2011.

Net earnings per diluted share for the year ended December31, 2012, were
$3.09, as compared to adjusted net earnings per diluted share for the year
ended December 31, 2011, of $2.91 when excluding the items above, an increase
of 6.2%.

For the year ended December31, 2012, the Company generated cash flow from
operations of approximately $217.9 million, while ending the quarter with
approximately $61.1 million of cash on hand. During the quarter ended December
31, 2012, the Company repurchased 930,541 shares for approximately $31.7
million, and for the year ended December31, 2012, the Company repurchased
1,797,526 shares for approximately $61.9 million in cash under its common
stock repurchase program. To date, the Company has repurchased a total of
31,120,279 shares and has utilized approximately $777.3 million of the $1
billion authorized by its Board of Directors since the inception of the plan.
Also, reflecting continued confidence in its strong cash flows, the Company
announced on December 17, 2012, that its Board of Directors approved a 31%
increase in its quarterly cash dividend from $0.16 per share to $0.21 per
share, beginning with the dividend for the first quarter of 2013. The Company
paid its eleventh consecutive quarterly cash dividend on January 24, 2013.

Same Store Sales (SSS) Methodology Change

The Company also announced that it is modifying the methodology it uses to
calculate same store sales, beginning with the first quarter of 2013. The 2013
guidance set forth below reflects the new methodology. The Company believes
these modifications bring its same store sales calculation into alignment with
the methods used by other major retailers. Below is a comparison of the
current and revised methodologies.

Current Methodology                         Revised Methodology
New or acquired store added to the SSS
base in the
fifth full quarter of operation.               New or acquired stores will be
Inclusion in the year-to-                      added to the SSS
date/annual SSS calculation required a      base in the 13^th full month of
store to be in                                 operation
operation for each of the entire
year-to-date periods
in the current and previous year.
                                           

We will continue to exclude from the same store sales base any store that
receives a certain level of customer accounts from another store (acquisition
or merger). The receiving store will be eligible for inclusion in the same
store sales base in the sixth full quarter following the account transfer.

2013 Guidance

  *5.0% to 8.0% total revenue growth.

       *In the first quarter, the Core U.S. is expected to decrease
         approximately 4.0%; but expected to remain flat for 2013.
       *Approximately $540 million contribution from RAC Acceptance.

  *Approximately 2.0% to 4.0% same store sales growth.

       *In the first quarter, consolidated same store sales is expected to
         decrease approximately 2.0%.

  *Approximately 50 basis points gross profit margin decrease.

       *Primarily due to the impact of RAC Acceptance.
       *In the first quarter, the RAC Acceptance gross profit margin is
         expected to be approximately 50% due to seasonality.

  *Approximately flat operating profit margin.
  *EBITDA in the range of $415 to $435 million.
  *Diluted earnings per share in the range of $3.25 to $3.40, including
    approximately $0.25 per share dilution related to our international growth
    initiatives.
  *Capital expenditures of approximately $120 million.
  *The Company expects to open approximately 425 domestic RAC Acceptance
    kiosks and net approximately 350.
  *The Company expects to open approximately 60 rent-to-own store locations
    in Mexico.
  *The 2013 guidance does not include the potential impact of any repurchases
    of common stock the Company may make, changes in future dividends,
    material changes in outstanding indebtedness, or the potential impact of
    acquisitions, dispositions or store closures that may be completed or
    occur after January 28, 2013.
  *Updated new store economics will be posted on the Company's website
    (http://investor.rentacenter.com) just prior to the January 29, 2013
    conference call.

2011 Significant Items

Restructuring Charges. As previously reported, the Company recorded a $1.4
million pre-tax restructuring charge during the fourth quarter of 2011 in
connection with the acquisition in November 2011 of 58 rent-to-own stores.
This charge relates primarily to post-acquisition lease terminations. This
pre-tax restructuring charge of $1.4 million reduced net earnings per diluted
share in the fourth quarter of 2011 by approximately $0.02 and for the year
ended December 31, 2011 by approximately $0.01.

As previously reported, the Company recorded a $7.6 million pre-tax
restructuring charge during the third quarter of 2011 related to lease
terminations, fixed asset disposals and other miscellaneous items in
connection with the closure of eight Home Choice stores in Illinois and 24 RAC
Limited locations within third party grocery stores, all of which had been
operated on a test basis, as well as the closure of 26 core rent-to-own stores
following the sale of all customer accounts at those locations. For the year
ended December 31, 2011, this pre-tax restructuring charge of $7.6 million
reduced net earnings per diluted share by approximately $0.08.

Also previously reported, the Company recorded a $4.9 million pre-tax
restructuring charge during the second quarter of 2011 related to
post-acquisition lease terminations in connection with the December 2010
acquisition of The Rental Store, Inc. For the year ended December 31, 2011,
this pre-tax restructuring charge of $4.9 million reduced net earnings per
diluted share by approximately $0.05.

Financial Services Charge. As previously reported, the Company recorded a
pre-tax impairment charge of $7.3 million during the first quarter of 2011
related primarily to loan write-downs, fixed asset disposals (store
reconstruction) and other miscellaneous items in connection with the
discontinuation of the financial services business. For the year ended
December31, 2011, this pre-tax impairment charge of $7.3 million reduced net
earnings per diluted share by approximately $0.08.

Settlement of Wage& Hour Claims in California. As previously reported, the
Company recorded a $2.8 million pre-tax litigation expense during the first
quarter of 2011 in connection with the settlement of certain putative class
actions pending in California alleging various claims, including violations of
California wage and hour laws. For the year ended December31, 2011, this
pre-tax litigation expense of $2.8 million reduced net earnings per diluted
share by approximately $0.03.

Rent-A-Center, Inc. will host a conference call to discuss the fourth quarter
results, guidance and other operational matters on Tuesday morning,
January29, 2013, at 10:45 a.m. ET. For a live webcast of the call, visit
http://investor.rentacenter.com. Certain financial and other statistical
information that will be discussed during the conference call will also be
provided on the same website.

Rent-A-Center, Inc., headquartered in Plano, Texas, is the largest rent-to-own
operator in North America, focused on improving the quality of life for its
customers by providing them the opportunity to obtain ownership of
high-quality, durable goods such as consumer electronics, appliances,
computers, furniture and accessories, under flexible rental purchase
agreements with no long-term obligation. The Company owns and operates
approximately 3,095 stores in the United States, Canada, Mexico and Puerto
Rico, and approximately 965 RAC Acceptance kiosk locations in the United
States and Puerto Rico. ColorTyme, Inc., a wholly owned subsidiary of the
Company, is a national franchiser of approximately 225 rent-to-own stores
operating under the trade name of "ColorTyme." For additional information
about the Company, please visit www.rentacenter.com.

This press release and the guidance above contain forward-looking statements
that involve risks and uncertainties. Such forward-looking statements
generally can be identified by the use of forward-looking terminology such as
"may," "will," "expect," "intend," "could," "estimate," "should,"
"anticipate," or "believe," or the negative thereof or variations thereon or
similar terminology. Although the Company believes that the expectations
reflected in such forward-looking statements will prove to be correct, the
Company can give no assurance that such expectations will prove to have been
correct. The actual future performance of the Company could differ materially
from such statements. Factors that could cause or contribute to such
differences include, but are not limited to: uncertainties regarding the
ability to open new locations; the Company's ability to acquire additional
stores or customer accounts on favorable terms; the Company's ability to
control costs and increase profitability; the Company's ability to enhance the
performance of acquired stores; the Company's ability to retain the revenue
associated with acquired customer accounts; the Company's ability to identify
and successfully market products and services that appeal to its customer
demographic; the Company's ability to enter into new and collect on its rental
or lease purchase agreements; the passage of legislation adversely affecting
the rent-to-own industry; the Company's failure to comply with applicable
statutes or regulations governing its transactions; changes in interest rates;
changes in the unemployment rate; economic pressures, such as high fuel costs,
affecting the disposable income available to the Company's current and
potential customers; the general strength of the economy and other economic
conditions affecting consumer preferences and spending; adverse changes in the
economic conditions of the industries, countries or markets that the Company
serves; changes in the Company's stock price, the number of shares of common
stock that it may or may not repurchase, and future dividends, if any; changes
in estimates relating to self-insurance liabilities and income tax and
litigation reserves; changes in the Company's effective tax rate; fluctuations
in foreign currency exchange rates; information security costs; the Company's
ability to maintain an effective system of internal controls; changes in the
number of share-based compensation grants, methods used to value future
share-based payments and changes in estimated forfeiture rates with respect to
share-based compensation; the resolution of the Company's litigation; and the
other risks detailed from time to time in the Company's SEC reports, including
but not limited to, its annual report on Form 10-K for the year ended
December31, 2011, and its quarterly reports on Form 10-Q for the quarters
ended March31, 2012, June 30, 2012, and September 30, 2012. You are cautioned
not to place undue reliance on these forward-looking statements, which speak
only as of the date of this press release. Except as required by law, the
Company is not obligated to publicly release any revisions to these
forward-looking statements to reflect the events or circumstances after the
date of this press release or to reflect the occurrence of unanticipated
events.

                                                                           
Rent-A-Center, Inc. and Subsidiaries
                                                                           
STATEMENT OF EARNINGS HIGHLIGHTS
                   
                         Three Months Ended December 31,
                         2012            2011            2011
                         After             Before            After
                         Significant       Significant       Significant
                         Items             Items             Items
                         (GAAP             (Non-GAAP         (GAAP
(In thousands
of dollars,              Earnings)        Earnings)        Earnings)   
except per
share data)
Total Revenues           $  758,380        $  737,482        $  737,482
Operating                   79,298            83,214            81,790     ^(1)
Profit
Net Earnings                47,459            50,510            49,295     ^(1)
Diluted
Earnings per             $  0.81           $  0.85           $  0.83       ^(1)
Common Share
Adjusted                 $  98,541         $  101,914        $  101,914
EBITDA
                                                                           
Reconciliation
to Adjusted
EBITDA:
                                                                           
Earnings
Before Income            $  73,021         $  74,309         $  72,885
Taxes
Add back:
Restructuring               —                 —                 1,424
Charge
Interest                    6,277             8,905             8,905
Expense, net
Depreciation
of Property                 18,617            17,276            17,276
Assets
Amortization
and Write-down             626             1,424           1,424    
of Intangibles
                                                                           
Adjusted                 $  98,541         $  101,914        $  101,914
EBITDA
                                                                           

                                                                    
                         Year Ended December 31,                         
                         2012           2011           2011        
                         After            Before            After
                         Significant       Significant       Significant
                         Items             Items             Items
                         (GAAP             (Non-GAAP         (GAAP
(In thousands
of dollars,              Earnings)        Earnings)        Earnings)   
except per
share data)
Total Revenues           $ 3,082,646       $ 2,882,184       $ 2,882,184
Operating                  318,472           317,220           293,157     ^(1)(2)(3)(4)(5)
Profit
Net Earnings               183,492           180,069           164,637     ^(1)(2)(3)(4)(5)
Diluted
Earnings per             $ 3.09            $ 2.91            $ 2.66        ^(1)(2)(3)(4)(5)
Common Share
Adjusted                 $ 397,722         $ 387,109         $ 387,109
EBITDA
                                                                           
Reconciliation
to Adjusted
EBITDA:
                                                                           
Earnings
Before Income            $ 287,249         $ 280,613         $ 256,550
Taxes
Add back:
Restructuring              —                 —                 13,943
Charge
Impairment                 —                 —                 7,320
Charge
Litigation                 —                 —                 2,800
Expense
Interest                   31,223            36,607            36,607
Expense, net
Depreciation
of Property                73,361            65,214            65,214
Assets
Amortization
and Write-down            5,889           4,675           4,675     
of Intangibles
                                                                           
Adjusted                 $ 397,722         $ 387,109         $ 387,109
EBITDA
                                                                           

^(1) Includes the effects of a $1.4 million pre-tax restructuring charge in
the fourth quarter of 2011 in connection with the acquisition in November 2011
of 58 rent-to-own stores. The charge reduced net earnings per diluted share by
approximately $0.02 for the fourth quarter of 2011 and by $0.01 for the twelve
month period ended December 31, 2011.

^(2) Includes the effects of a $7.6 million pre-tax restructuring charge in
the third quarter of 2011 related to the closure of eight Home Choice stores
in Illinois and 24 RAC Limited locations within third party grocery stores, as
well as the closure of 26 core rent-to-own stores following the sale of all
customer accounts at these locations. The charge reduced net earnings per
diluted share by approximately $0.08 for the twelve month period ended
December 31, 2011.

^(3) Includes the effects of a $4.9 million pre-tax restructuring charge in
the second quarter of 2011 for lease terminations related to The Rental Store,
Inc. acquisition. The charge reduced net earnings per diluted share by
approximately $0.05 for the twelve month period ended December 31, 2011.

^(4) Includes the effects of a $7.3 million pre-tax impairment charge in the
first quarter of 2011 related to the discontinuation of the financial services
business. The charge reduced net earnings per diluted share by approximately
$0.08 for the twelve month period ended December 31, 2011.

^(5) Includes the effects of a $2.8 million pre-tax litigation expense in the
first quarter of 2011 related to the settlement of wage and hour claims in
California. The charge reduced net earnings per diluted share by approximately
$0.03 for the twelve month period ended December 31, 2011.


SELECTED BALANCE SHEET HIGHLIGHTS
                                     
                                          December 31,
                                          2012             2011
(In thousands of dollars)                 Unaudited   
Cash and Cash Equivalents                 $ 61,087              $ 88,065
Receivables, net                            48,822                48,221
Prepaid Expenses and Other Assets           71,963                69,326
Rental Merchandise, net
On Rent                                     821,887               766,425
Held for Rent                               198,917               186,768
Total Assets                              $ 2,869,105           $ 2,801,378
                                                                  
Senior Debt                               $ 387,500             $ 440,675
Senior Notes                                300,000               300,000
Total Liabilities                           1,399,242             1,442,169
Stockholders' Equity                      $ 1,469,863           $ 1,359,209
                                                                  

                                                 
Rent-A-Center, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF EARNINGS
                                                         
                                                         
                       Three Months Ended December       Year Ended December 31,
                       31,
                       2012          2011              2012            2011
(In thousands,
except per             Unaudited                         Unaudited
share data)
Revenues
Store
Rentals and            $ 665,054       $ 646,165         $ 2,654,081       $ 2,496,863
fees
Merchandise            57,742          56,755            300,077           259,796
sales
Installment            19,131          19,011            68,356            68,617
sales
Other                  4,111           4,296             16,391            17,925
Franchise
Merchandise            11,095          10,051            38,427            33,972
sales
Royalty income         1,247          1,204            5,314            5,011       
and fees
                       758,380         737,482           3,082,646         2,882,184
Cost of
revenues
Store
Cost of
rentals and            164,136         152,753           646,090           570,493
fees
Cost of
merchandise            49,181          50,595            241,219           201,854
sold
Cost of
installment            7,170           7,233             24,572            24,834
sales
Franchise cost
of merchandise         10,707         9,612            36,848           32,487      
sold
                       231,194         220,193           948,729           829,668
Gross profit           527,186         517,289           2,133,917         2,052,516
Operating
expenses
Salaries and           412,324         395,507           1,661,056         1,590,009
other expenses
General and
administrative         34,938          37,144            148,500           140,612
expenses
Amortization
and write-down         626             1,424             5,889             4,675
of intangibles
Restructuring          —               1,424             —                 13,943
charge
Impairment             —               —                 —                 7,320
charge
Litigation             —              —                —                2,800       
expense
                       447,888         435,499           1,815,445         1,759,359
Operating              79,298          81,790            318,472           293,157
profit
Interest               6,649           9,050             32,065            37,234
expense
Interest               (372      )     (145      )       (842        )     (627        )
income
Earnings
before income          73,021          72,885            287,249           256,550
taxes
Income tax             25,562         23,590           103,757          91,913      
expense
NET EARNINGS           $ 47,459       $ 49,295         $ 183,492        $ 164,637   
                                                                           
Basic weighted         58,356         58,917           58,913           61,188      
average shares
                                                                           
Basic earnings
per common             $ 0.81         $ 0.84           $ 3.11           $ 2.69      
share
                                                                           
Diluted
weighted               58,793         59,611           59,405           61,889      
average shares
                                                                           
Diluted
earnings per           $ 0.81         $ 0.83           $ 3.09           $ 2.66      
common share
                                                                                       


Rent-A-Center, Inc. and Subsidiaries

SEGMENT INFORMATION HIGHLIGHTS
               
(In
thousands of       Three Months Ended December 31, 2012
dollars)
                   Core U.S.    RAC          International   ColorTyme   Total
                                  Acceptance
Revenue            $ 638,650      $  94,657      $  12,731         $ 12,342      $ 758,380
Gross profit       459,762        57,083         8,706             1,635         527,186
Operating          74,281         10,948         (6,705     )      774           79,298
profit
Depreciation
of property        16,104         1,011          1,482             20            18,617
assets
Amortization
and
write-down         497            129            —                 —             626
of
intangibles
Capital            25,591         1,693          2,066             —             29,350
expenditures
                                                                                 

(In
thousands of    Three Months Ended December 31, 2011
dollars)
                   Core U.S.    RAC          International   ColorTyme   Total
                                  Acceptance
Revenue            $ 657,951      $ 62,680       $   5,596         $ 11,255      $ 737,482
Gross profit       475,263        36,467         3,916             1,643         517,289
Operating          89,267         (2,503   )     (5,830     )      856           81,790
profit
Depreciation
of property        15,616         709            925               26            17,276
assets
Amortization
and
write-down         527            897            —                 —             1,424
of
intangibles
Capital            31,385         1,519          7,827             —             40,731
expenditures
                                                                                 

(In
thousands of    Year Ended December 31, 2012
dollars)
                   Core U.S.      RAC          International   ColorTyme   Total
                                    Acceptance
Revenue            $ 2,655,411      $ 343,283      $  40,211         $ 43,741      $ 3,082,646
Gross profit       1,904,586        194,607        27,831            6,893         2,133,917
Operating          318,496          27,972         (30,322    )      2,326         318,472
profit
Depreciation
of property        63,793           3,631          5,848             89            73,361
assets
Amortization
and
write-down         2,103            2,819          967               —             5,889
of
intangibles
Capital            84,680           5,275          12,498            —             102,453
expenditures
Rental
merchandise,
net
On rent            597,771          209,964        14,152            —             821,887
Held for           189,526          2,979          6,412             —             198,917
rent
Total assets       2,508,370        292,070        65,954            2,711         2,869,105
                                                                                   

(In
thousands of    Year Ended December 31, 2011
dollars)
                   Core U.S.      RAC           International   ColorTyme   Total
                                    Acceptance
Revenue            $ 2,631,416      $ 193,295       $  18,490         $ 38,983      $ 2,882,184
Gross profit       1,918,781        114,228         13,011            6,496         2,052,516
Operating          317,473          (13,985   )     (13,551    )      3,220         293,157
profit
Depreciation
of property        60,558           2,229           2,295             132           65,214
assets
Amortization
and
write-down         1,092            3,583           —                 —             4,675
of
intangibles
Capital            108,553          5,881           18,276            —             132,710
expenditures
Rental
merchandise,
net
On rent            619,189          139,340         7,896             —             766,425
Held for           177,625          1,274           7,869             —             186,768
rent
Total assets       2,536,115        217,157         44,535            3,571         2,801,378
                                                                                    

            
Rent-A-Center, Inc. and Subsidiaries

LOCATION ACTIVITY
                
                Three Months Ended December 31, 2012
                Core      RAC          International   ColorTyme   Total
                U.S.        Acceptance
Locations
at              2,983       882            114               220           4,199
beginning
of period
New
location        12          103            9                 7             131
openings
Acquired
locations       —           —              —                 —             —
remaining
open
Closed
locations
Merged
with            9           19             —                 3             31
existing
locations
Sold or
closed
with no         —          —             15               —            15
surviving
location
Locations
at end of       2,986      966           108              224          4,284
period
Acquired
locations
closed
and
accounts        6           —              —                 —             6
merged
with
existing
locations
                                                                           

             Three Months Ended December 31, 2011
                Core      RAC          International   ColorTyme   Total
                U.S.        Acceptance
Locations
at              2,958       721            44                213           3,936
beginning
of period
New
location        21          86             36                2             145
openings
Acquired
locations       21          —              —                 1             22
remaining
open
Closed
locations
Merged
with            4           54             —                 —             58
existing
locations
Sold or
closed
with no         2          3             —                —            5
surviving
location
Locations
at end of       2,994      750           80               216          4,040
period
Acquired
locations
closed
and
accounts        42          —              —                 —             42
merged
with
existing
locations
                                                                           

             Year Ended December 31, 2012
                Core      RAC          International   ColorTyme   Total
                U.S.        Acceptance
Locations
at              2,994       750            80                216           4,040
beginning
of period
New
location        35          325            45                18            423
openings
Acquired
locations       2           —              —                 —             2
remaining
open
Closed
locations
Merged
with            40          95             1                 —             136
existing
locations
Sold or
closed
with no         5          14            16               10           45
surviving
location
Locations
at end of       2,986      966           108              224          4,284
period
Acquired
locations
closed
and
accounts        20          —              —                 —             20
merged
with
existing
locations
                                                                           

             Year Ended December 31, 2011
                Core      RAC          International   ColorTyme   Total
                U.S.        Acceptance
Locations
at              2,985       384            23                209           3,601
beginning
of period
New
location        52          445            57                10            564
openings
Acquired
locations       26          5              —                 3             34
remaining
open
Closed
locations
Merged
with            28          63             —                 —             91
existing
locations
Sold or
closed
with no         41         21            —                6            68
surviving
location
Locations
at end of       2,994      750           80               216          4,040
period
Acquired
locations
closed
and
accounts        71          —              —                 —             71
merged
with
existing
locations

Contact:

Rent-A-Center, Inc.
David E. Carpenter, 972-801-1214
Vice President of Investor Relations
david.carpenter@rentacenter.com