Rent-A-Center RCII, the nation's largest
rent-to-own operator, today announced that its Board of Directors has approved
a 10% increase in its quarterly cash dividend from $0.21 per share to $0.23
per share, beginning with the dividend for the first quarter of 2014. The
Company declared its fifteenth consecutive cash dividend: a $0.23 per share
cash dividend for the first quarter of 2014 to be paid to the Company's common
stockholders. The dividend will be paid on January 23, 2014, to common
stockholders of record as of the close of business on January 3, 2014.
“We are pleased that the strength of our financial position allows us to
increase our dividend payout to shareholders,” said Mark E. Speese, Chairman
and Chief Executive Officer of the Company. “This dividend increase reflects
not only our confidence in the Company's strong long-term recurring cash
flows, but also our belief that continued investments in our strategic
initiatives will generate further growth and provide long-term value for our
stockholders,” Mr. Speese concluded.
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 3,140 stores in the United States, Canada, Mexico and Puerto
Rico, and approximately 1,300 AcceptanceNOW kiosk locations in the United
States and Puerto Rico. Rent-A-Center Franchising International (previously
ColorTyme, Inc.), a wholly owned subsidiary of the Company, is a franchisor of
approximately 215 rent-to-own stores operating under the trade name of
“Rent-A-Center” or “ColorTyme.”
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 compliance 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;
the Company's available cash flow; 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 technology
and data security costs; the Company's ability to maintain an effective system
of internal controls; 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 December
31, 2012 and its quarterly reports on Form 10-Q for the quarters ended March
31, 2013, June 30, 2013, and September 30, 2013. 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.
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