Rent-A-Center Books Goodwill Impairment From Deals Done In Early 1990s
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.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.