Market Overview

Rent-A-Center Provides Business Updates

  • Reducing corporate headcount by approximately 250 positions along
    with related G&A expected to generate approximately $28 Million in
    annual cost savings as part of previously announced plan that
    identified approximately $65 - $85 million in annualized cost savings
  • Review of strategic and financial alternatives remains ongoing;
    Evaluating proposals

Rent-A-Center, Inc. (the "Company") (NASDAQ/NGS: RCII) today announced a
significant reduction in headcount and provided a number of business
updates pertaining to its recently announced strategic plan and its
Board of Directors' ongoing review of strategic and financial

Implementing Cost Cutting Initiatives to Drive Profitability

The Company's strategic plan is focused on driving growth and
profitability by reducing costs and enhancing the customer value
proposition. Accordingly, Rent-A-Center announced it is reducing its
headcount by approximately 250 positions, representing approximately 25%
of its corporate office workforce in Plano, Texas, effective today. This
initiative is intended to better align the Company's organizational
structure with its operations under its strategic plan to drive $65
million to $85 million of annualized cost savings opportunities. The
headcount reduction, along with related G&A, is expected to generate
approximately $28 million in annual run-rate cost savings with
approximately $20 million realized in 2018. The Company expects to incur
employee severance charges and other one-time costs relating to these
workforce reductions of approximately $3 million in the first quarter of

The headcount reduction follows the recent elimination of
Rent-A-Center's Chief Operating Officer position, as disclosed on
February 28, 2018. The elimination of that position is intended to bring
the overall operations of the Company under the direct control of Mitch
Fadel, Rent-A-Center's Chief Executive Officer. As the Company realizes
cost-savings opportunities, Rent-A-Center remains focused on driving
revenue through a more targeted value proposition and customer focus and
has recently rehired Ann Davids in the Chief Marketing Officer role.
With respect to 2018 efforts to date, Company same store sales continued
to improve sequentially, with January and February same store sales
representing the strongest months since February of 2016. In addition,
Core U.S. pricing changes, a key part of the Company's growth strategy,
are set to take effect tomorrow.

"As we outlined just two weeks ago, Rent-A-Center is implementing
initiatives to reduce costs and improve performance. While major
reductions in work force are difficult, we are confident that
Rent-A-Center will be better positioned for long-term growth and
profitability," said Mitch Fadel, Chief Executive Officer of
Rent-A-Center. "Additionally, we remain focused on delivering a more
targeted value proposition and look forward to building on our momentum
from our January and February performance."

Strategic & Financial Alternatives Update

Finally, in order to clarify incorrect information in the marketplace,
the Company reconfirmed that its Board is continuing its review of
strategic and financial alternatives to maximize stockholder value,
including evaluating a sale of the Company. The Company has received
proposals from bidders interested in acquiring the Company and the Board
and its advisors remain actively engaged with these parties. The Board
currently expects to reach a determination with respect to whether to
pursue a sale of the Company during the second quarter 2018, and does
not intend to provide further updates on that part of its strategic

There can be no assurance that the Board's exploration of strategic and
financial alternatives will result in any particular action or any
transaction being pursued, entered into or consummated, or the timing of
any action or transaction.

About Rent-A-Center, Inc.

A rent-to-own industry leader, Plano, Texas-based, Rent-A-Center, Inc.,
is focused on improving the quality of life for its customers by
providing them the opportunity to obtain ownership of high-quality,
durable products 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 2,500 stores in the United States, Mexico, Canada and
Puerto Rico, and approximately 1,300 Acceptance Now kiosk locations in
the United States and Puerto Rico. Rent-A-Center Franchising
International, Inc., a wholly owned subsidiary of the Company, is a
national franchiser of approximately 230 rent-to-own stores operating
under the trade names of "Rent-A-Center", "ColorTyme", and "RimTyme".
For additional information about the Company, please visit our website

Forward Looking Statements

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," "believe," or "confident," or the
negative thereof or variations thereon or similar terminology. The
Company believes that the expectations reflected in such forward-looking
statements are accurate. However, there can be no assurance that such
expectations will occur. The Company's actual future performance could
differ materially from such statements. Factors that could cause or
contribute to such differences include, but are not limited to: the
general strength of the economy and other economic conditions affecting
consumer preferences and spending; factors affecting the disposable
income available to the Company's current and potential customers;
changes in the unemployment rate; uncertainties concerning the outcome,
impact, effects and results of the Company's exploration of its
strategic and financial alternatives; difficulties encountered in
improving the financial and operational performance of the Company's
business segments; the Company's ability to refinance its senior credit
facility on favorable terms, if at all; the Company's ability to realize
any benefits from its initiatives regarding cost-savings and other
EBITDA enhancements, efficiencies and working capital improvements; the
Company's chief executive officer transition, including the Company's
ability to effectively operate and execute its strategies during the
interim period; the Company's ability to execute its franchise strategy;
failure to manage the Company's store labor and other store expenses;
the Company's ability to develop and successfully execute strategic
initiatives; disruptions caused by the operation of the Company's store
information management system, and its transition to more-readily
scalable, "cloud-based" solutions; the Company's ability to develop and
successfully implement digital or E-commerce capabilities, including
mobile applications; disruptions in the Company's supply chain;
limitations of, or disruptions in, the Company's distribution network;
rapid inflation or deflation in the prices of the Company's products;
the Company's ability to execute and the effectiveness of a store
consolidation, including the Company's ability to retain the revenue
from customer accounts merged into another store location as a result of
a store consolidation; the Company's available cash flow; the Company's
ability to identify and successfully market products and services that
appeal to its customer demographic; consumer preferences and perceptions
of the Company's brand; 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 retain the
revenue associated with acquired customer accounts and enhance the
performance of acquired stores; 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; adverse changes in the economic
conditions of the industries, countries or markets that the Company
serves; information technology and data security costs; the impact of
any breaches in data security or other disturbances to the Company's
information technology and other networks and the Company's ability to
protect the integrity and security of individually identifiable data of
its customers and employees; changes in the Company's stock price, the
number of shares of common stock that it may or may not repurchase, and
the Company's dividend policy and any changes thereto, 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; 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, 2017. 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 hereof or to reflect the
occurrence of unanticipated events.

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