Rent-A-Center (RCII) Tops Q1 EPS by 21c, Revenues Beat; Raises FY21 Revenues Guidance Above Consensus, FY21 EPS Mid-Point Views Above Consensus

Rent-A-Center (NASDAQ: RCII) reported Q1 EPS of $1.32, $0.21 better than the analyst estimate of $1.11. Revenue for the quarter came in at $997.02 million versus the consensus estimate of $955.96 million.

• Consolidated Revenues of $1.0 Billion, up 24.8%1 on a Pro Forma Basis
• Acima Segment Pro Forma Revenue Growth of 30.2%1
• Acima Segment Invoice Volume of $506 million, up 28%1 on a Pro Forma Basis
• Rent-A-Center Business Same Store Sales of 23.4%
• Diluted EPS of $0.64; Non-GAAP Diluted EPS of $1.32
• Increases Consolidated Full Year 2021 Guidance

“We're extremely pleased with the momentum across the business in the first quarter of 2021," said Mitch Fadel, Chief Executive Officer. "We delivered one of the most successful quarters in our history, with same store sales and invoice volume accelerating in an improving economy and strong lease performance in both our Acima and Rent-A-Center segments."

"Acima has immediately transformed our retail partner business to a higher growth, higher profit, best in class virtual platform," continued Mr. Fadel. "The Acima virtual LTO business we acquired in mid-February achieved a 17.5 percent adjusted EBITDA margin in the quarter, and we're bringing new innovations to cash and credit constrained customers that can support long-term growth. The market opportunity is significant, and we see ample runway to capture share across a wide spectrum of retail partner and consumer channels."

"Meanwhile, digital investments continue to propel the Rent-A-Center business," said Mr. Fadel. "E-commerce revenue increased over 50 percent versus the year-ago quarter, and we believe the tech-enabled enhancement we've made to the payments and collections process has long-term benefits."

"We've increased our outlook for consolidated revenue, adjusted EBITDA, diluted non-GAAP earnings per share and free cash flow for the year," said Mr. Fadel. "The revised outlook incorporates our expectation that trends normalize in the second half of 2021. We're excited about long-term prospects and confident in our 2023 goal for $6.0 billion in consolidated revenues with a mid-teens consolidated adjusted EBITDA margin," Mr. Fadel concluded.

GUIDANCE:

Rent-A-Center sees FY2021 EPS of $5.30-$5.85, versus the consensus of $5.37. Rent-A-Center sees FY2021 revenue of $4.45-4.6 billion, versus the consensus of $4.4 billion.

For earnings history and earnings-related data on Rent-A-Center (RCII) click here.

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