Rent-A-Center Issues Statement
Following Rent-A-Center’s announcement of the conclusion of its strategic and financial alternatives review process, the Company received a letter containing an increased offer to acquire the Company from one of the parties which had previously been involved in the process, and the letter further stated that it “does not constitute an offer capable of being accepted or a binding agreement of any kind.” The letter was not accompanied by equity commitment letters that would be necessary for the Company to evaluate whether to enter into an agreement with an acquisition entity possessing no assets. Consistent with its fiduciary duties, the Board would carefully consider any credible proposal with the assistance of its outside financial and legal advisors to determine whether a proposal would ultimately maximize stockholder value.
About
A rent-to-own industry leader,
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
completion of the Company’s review 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 expiring in
early 2019 on favorable terms, if at all; risks associated with pricing
changes and strategies being deployed in the Company's businesses; the
Company's ability to realize additional benefits from its initiatives
regarding cost-savings and other EBITDA enhancements, efficiencies and
working capital improvements; 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 successfully execute its
strategic initiatives; disruptions caused by the operation of the
Company's store information management system; the Company's 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 and enhancements to its
unmanned platform for its Acceptance NOW segment; disruptions in the
Company's supply chain; limitations of, or disruptions in, the Company's
distribution network, and the impact, effects and results of the changes
the Company has made and is making to its distribution methods; 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; 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 and its
Quarterly Report on Form 10-Q for the quarter ended
View source version on businesswire.com: https://www.businesswire.com/news/home/20180611005407/en/
Source:
Investors:
Rent-A-Center, Inc.
Maureen Short,
972-801-1899
Interim Chief Financial Officer
maureen.short@rentacenter.com
or
Media:
Joele
Frank, Wilkinson Brimmer Katcher
James Golden / Matthew Gross /
Aura Reinhard, 212-355-4449