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Rent-A-Center Books Goodwill Impairment From Deals Done In Early 1990s

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After Monday's close, Rent-A-Center Inc (NASDAQ: RCII) released Q4 EPS of $0.54 versus estimates of $0.52.

However, the company also reported an EPS loss of $(17.20) due to the impairment of goodwill stemming from acquisitions pursued during the period between 1993 and 2006. The total amount of the impairment is $1.170 billion and is non-cash and will not impact liquidity or debt covenants.

Rent-A-Center also reported Q4 same-store-sales declined 2.2 percent, driven by dwindling PC/Tablet demand along with oil market headwinds trumping the strength reported in furniture, consumer electronic and appliance sales.

Shares of Rent-A-Center declined roughly 10 percent to $12 in the after-hours session.

Posted-In: Earnings News After-Hours Center Movers

 

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