UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report:
(Date of earliest event reported)
(Date of earliest event reported)
July 28, 2008
RENT-A-CENTER, INC.
(Exact name of registrant as specified in charter)
| Delaware (State or other jurisdiction of incorporation or organization) |
0-25370 (Commission File Number) |
45-0491516 (IRS Employer Identification No.) |
5501 Headquarters Drive
Plano, Texas 75024
(Address of principal executive offices and zip code)
Plano, Texas 75024
(Address of principal executive offices and zip code)
(972) 801-1100
(Registrant’s telephone
number, including area code)
(Registrant’s telephone
number, including area code)
N/A
(Former name or former address, if changed since last report)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the Registrant under any of the following provisions (see General
Instruction A.2. below):
| o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425). |
| o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12). |
| o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)). |
| o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)). |
| Item 2.02 | Results of Operations and Financial Condition. |
Attached hereto as Exhibit 99.1 is the Registrant’s press release reflecting earnings
information for the quarter ended June 30, 2008.
The press release contains information regarding EBITDA (earnings before interest, taxes,
depreciation and amortization), which is a non-GAAP financial measure as defined in Item 10(e) of
Regulation S-K. The press release also contains a reconciliation of EBITDA to the Registrant’s
reported earnings before income taxes. Management of the Registrant believes that presentation of
EBITDA is useful to investors, as among other things, this information impacts certain financial
covenants under the Registrant’s senior credit facilities and the indenture governing its 7 1/2%
Senior Subordinated Notes due 2010. While management believes this non-GAAP financial measure is
useful in evaluating the Registrant, this information should be considered as supplemental in
nature and not as a substitute for or superior to the related financial information prepared in
accordance with GAAP. Further, the non-GAAP financial measure may differ from similar measures
presented by other companies.
Pursuant to General Instruction B.2. of Form 8-K, all of the information contained in this
Form 8-K and the accompanying exhibit shall be deemed to be “furnished” and not “filed” for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and, therefore, shall
not be incorporated by reference in any filing under the Securities Act of 1933, as amended.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits
Exhibit 99.1 Press Release, dated July 28, 2008.
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| RENT-A-CENTER, INC. |
||||
| Date: July 28, 2008 | By: | /s/ Robert D. Davis | ||
| Robert D. Davis | ||||
| Executive Vice President - Finance, Chief Financial Officer and Treasurer | ||||
3
EXHIBIT INDEX
| Exhibit No. | Description | |||
| 99.1 | Press release, dated July 28, 2008 |
|||
Exhibit 99.1
For Immediate Release:
RENT-A-CENTER, INC. REPORTS
SECOND QUARTER 2008 RESULTS
SECOND QUARTER 2008 RESULTS
Same Store Sales Increase 0.9%
Diluted Earnings per Share of $0.56
Cash Flow from Operations Exceeds $213 million Year-To-Date
Diluted Earnings per Share of $0.56
Cash Flow from Operations Exceeds $213 million Year-To-Date
Plano, Texas, July 28, 2008 — Rent-A-Center, Inc. (the “Company”) (NASDAQ/NGS:RCII), the nation’s
largest rent-to-own operator, today announced revenues and earnings for the quarter ended June 30,
2008.
Second Quarter 2008 Results
Total revenues for the quarter ended June 30, 2008 were $719.0 million, a decrease of $5.2 million
from the total revenues of $724.2 million for the same period in the prior year. This decrease in
revenues was primarily the result of approximately 325 fewer stores over the past year principally
due to the previously announced restructuring plan, offset by a 0.9% increase in same store sales.
Net earnings for the quarter ended June 30, 2008 were $37.7 million, as compared to the net
earnings of $41.3 million for the same period in the prior year. Net earnings per diluted share
for the quarter ended June 30, 2008 were $0.56, as compared to the net earnings per diluted share
of $0.58 for the same period in the prior year.
“Our operating team executed well in the second quarter in spite of the difficult economic
conditions,” commented Mark E. Speese, the Company’s Chairman and Chief Executive Officer. “We
exceeded our guidance for same store sales and were within our guidance for store rental and fee
revenue and diluted earnings per share,” Speese continued. “We continue to be cautiously
optimistic about the near term. We believe that we are well positioned with our marketing and
advertising plans in place and should also benefit from customers attracted to our transaction due
to the difficult credit environment. And we will continue to use our account-management skills to
maintain a focus on our collections,” Speese concluded.
Six Months Ended June 30, 2008 Results
Total revenues for the six months ended June 30, 2008 were $1.476 billion, a decrease of $3.0
million from the total revenues of $1.479 billion for the same period in the prior year. This
decrease in revenues was primarily the result of approximately 325 fewer stores over the past year
principally due to the previously announced restructuring plan, offset by a 2.2% increase in same
store sales.
Net earnings for the six months ended June 30, 2008 were $74.1 million, as compared to the net
earnings of $56.4 million for the same period in the prior year. Net earnings for the six months
ended June 30, 2008 were reduced by a $2.9 million pre-tax restructuring expense related to the
previously announced restructuring plan, as discussed below. Net earnings for the six months ended
June 30, 2007 were reduced by a $51.3 million pre-tax litigation charge related to the Hilda Perez
matter, as discussed below.
Net earnings per diluted share for the six months ended June 30, 2008 were $1.10, as compared to
the net earnings per diluted share of $0.79 for the same period in the prior year. Net earnings
per diluted share for the six months ended June 30, 2008 were reduced by approximately $0.03 per
share as a result of the restructuring expense related to the previously announced restructuring
plan, as discussed below. Net earnings per diluted share for the six months ended June 30, 2007
were reduced by approximately $0.46 per share as a result of the litigation expense related to the
Hilda Perez matter, as discussed below.
“As a result of our strong operating results, we generated cash flow from operations of
approximately $213.1 million for the six month period through June 30, 2008, while ending the
quarter with approximately $75.1 million of cash on hand,” commented Robert D. Davis, the Company’s
Executive Vice President and Chief Financial Officer. “With our significant cash flow
year-to-date, we were able to strengthen our balance sheet by reducing our outstanding indebtedness
by approximately $200.9 million,” Davis continued. “Since June 30, 2008, the Company has further
reduced its outstanding indebtedness by $24.0 million,” Davis concluded.
During the six month period ended June 30, 2008, the Company also repurchased 150,000 shares of its
common stock for $3.1 million in cash under its common stock repurchase program. To date, the
Company has repurchased a total of 18,610,950 shares and has utilized approximately $447.4 million
of the $500.0 million authorized by its Board of Directors since the inception of the plan.
Operations Highlights
During the second quarter of 2008, the Company opened one new store location, acquired one store as
well as accounts from 10 additional locations, consolidated nine stores into existing locations and
sold six stores, for a net reduction of 13 stores and an ending balance as of June 30, 2008 of
3,053 company-owned stores. During the second quarter of 2008, the Company added financial
services to 26 existing rent-to-own store locations, acquired accounts from one location, and
closed two locations, for a net addition of 24 store locations and an ending balance as of June 30,
2008 of 304 store locations providing financial services.
Through the six month period ended June 30, 2008, the Company opened three new store locations,
acquired one store as well as accounts from 16 additional locations, consolidated 19 stores into
existing locations and sold 13 stores, for a net reduction of 28 stores since December 31, 2007.
Through the six month period ending June 30, 2008, the Company added financial services to 33
existing rent-to-own store locations, acquired accounts from one location, consolidated two stores
with financial services into existing locations, and closed three locations, for a net addition of
28 store locations since December 31, 2007.
Since June 30, 2008, the Company has opened one new store location and acquired accounts from one
location. The Company has added financial services to 19 existing rent-to-own store locations
since June 30, 2008.
2008 Significant Item
Restructuring Plan Expenses. During the first quarter of 2008, the Company recorded a pre-tax
restructuring expense of approximately $2.9 million in connection with the restructuring plan
previously announced on December 3, 2007. This restructuring expense reduced net earnings per
diluted share by approximately $0.03 in the first quarter of 2008 and for the six month period
ended June 30, 2008. As previously reported, the Company recorded a pre-tax restructuring expense
of approximately $38.7 million related to this restructuring plan during the fourth quarter of
2007. The costs with respect to the restructuring plan relate primarily to lease terminations,
fixed asset disposals and other miscellaneous items.
2007 Significant Item
Hilda Perez. On November 5, 2007, the Company paid an aggregate of $109.3 million, including
plaintiffs’ attorneys’ fees and administration costs, pursuant to the court approved settlement of
the Hilda Perez v. Rent-A-Center, Inc. matter pending in New Jersey. As previously reported, the
Company recorded a pre-tax expense of $58.0 million in connection with the Perez matter during the
fourth quarter of 2006, and an additional pre-tax charge of $51.3 million in the first quarter of
2007, to account for the aforementioned costs. The litigation expense with respect to the Perez
settlement reduced net earnings per diluted share by approximately $0.46 in the first quarter of
2007 and for the six month period ended June 30, 2007.
- - -
Rent-A-Center, Inc. will host a conference call to discuss the second quarter results, guidance and
other operational matters on Tuesday morning, July 29, 2008, at 10:45 a.m. EDT. For a live webcast
of the call, visit http://investor.rentacenter.com. Certain financial and other
statistical information that will be discussed during the conference call will also be provided on
the same website.
Rent-A-Center, Inc., headquartered in Plano, Texas, currently operates approximately 3,054
company-owned stores nationwide and in Canada and Puerto Rico. The stores generally offer
high-quality, durable goods such as major consumer electronics, appliances, computers and furniture
and accessories under flexible rental purchase agreements that generally allow the customer to
obtain ownership of the merchandise at the conclusion of an agreed upon rental period. ColorTyme,
Inc., a wholly owned subsidiary of the Company, is a national franchiser of approximately 228
rent-to-own stores operating under the trade name of “ColorTyme.”
The following statements are based on current expectations. These statements are forward-looking
and actual results may differ materially. These statements do not include the potential impact of
any repurchases of common stock the Company may make, reduction in outstanding indebtedness, any
restructuring expenses related to the restructuring plan announced on December 3, 2007, or the
potential impact of acquisitions or dispositions that may be completed after July 28, 2008.
THIRD QUARTER 2008 GUIDANCE:
Revenues
| • | The Company expects total revenues to be in the range of $700 million to $715 million. | |
| • | Store rental and fee revenues are expected to be between $619 million and $631 million. | |
| • | Total store revenues are expected to be in the range of $692 million to $707 million. | |
| • | Same store sales are expected to be in the 3% to 4% range. | |
| • | The Company expects to open approximately 5 new rent-to-own store locations. | |
| • | The Company expects to add financial services to approximately 60 rent-to-own store locations. |
Expenses
| • | The Company expects cost of rental and fees to be between 22.6% and 23.0% of store rental and fee revenue and cost of merchandise sold to be between 75% and 79% of store merchandise sales. | |
| • | Store salaries and other expenses are expected to be in the range of 58.4% to 59.9% of total store revenue. | |
| • | General and administrative expenses are expected to be between 4.3% and 4.5% of total revenue. | |
| • | Net interest expense is expected to be approximately $14 million, depreciation of property assets is expected to be approximately $18 million and amortization of intangibles is expected to be approximately $3.5 million. | |
| • | The effective tax rate is expected to be in the range of 36.0% to 36.5% of pre-tax income. | |
| • | Diluted earnings per share are estimated to be in the range of $0.45 to $0.50. | |
| • | Diluted shares outstanding are estimated to be between 67.0 million and 68.0 million. |
FISCAL 2008 GUIDANCE:
Revenues
| • | The Company expects total revenues to be in the range of $2.890 billion and $2.920 billion. | |
| • | Store rental and fee revenues are expected to be between $2.520 billion and $2.550 billion. | |
| • | Total store revenues are expected to be in the range of $2.851 billion and $2.881 billion. | |
| • | Same store sales are expected to be in the 1% to 3% range. | |
| • | The Company expects to open approximately 20 new rent-to-own store locations. | |
| • | The Company expects to add financial services to approximately 150 rent-to-own store locations. |
Expenses
| • | The Company expects cost of rental and fees to be between 22.6% and 23.0% of store rental and fee revenue and cost of merchandise sold to be between 75% and 79% of store merchandise sales. | |
| • | Store salaries and other expenses are expected to be in the range of 56.9% to 58.4% of total store revenue. | |
| • | General and administrative expenses are expected to be between 4.3% and 4.5% of total revenue. | |
| • | Net interest expense is expected to be approximately $62 million, depreciation of property assets is expected to be between $70 million and $75 million and amortization of intangibles is expected to be approximately $14 million. | |
| • | The effective tax rate is expected to be approximately 37% of pre-tax income. | |
| • | Diluted earnings per share are estimated to be in the range of $2.20 to $2.30. | |
| • | Diluted shares outstanding are estimated to be between 67.0 million and 68.0 million. |
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 rent-to-own stores; the Company’s
ability to acquire additional rent-to-own stores or customer accounts on favorable terms; the
Company’s ability to successfully add financial services locations within its existing rent-to-own
stores; the Company’s ability to identify and successfully enter new lines of business offering
products and services that appeal to its customer demographic, including its financial services
products; the Company’s ability to enhance the performance of acquired stores; the Company’s
ability to control costs; 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 purchase agreements; the Company’s ability to enter into new and collect on
its short term loans; the passage of legislation adversely affecting the rent-to-own or financial
services industries; interest rates; economic pressures, such as high fuel and utility costs,
affecting the disposable income available to the Company’s targeted consumers; changes in the
Company’s stock price and the number of shares of common stock that it may or may not repurchase;
changes in estimates relating to self-insurance liabilities and income tax and litigation reserves;
changes in the Company’s effective tax rate; the Company’s ability to maintain an effective system
of internal controls; changes in the number of share-based compensation grants, methods used to
value future share-based payments and changes in estimated forfeiture rates with respect to
share-based compensation; the resolution of the Company’s litigation; a specified percentage of
class members timely and validly opt out of the Shafer/Johnson settlement; the court hearing the
Shafer/Johnson matter could refuse to approve the settlement or could require changes to the
settlement that are unacceptable to the Company or the plaintiffs; 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, 2007, and its quarterly report for the quarter ended
March 31, 2008. 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.
Contact for Rent-A-Center, Inc.:
David E. Carpenter
Vice President of Investor Relations
(972) 801-1214
david.carpenter@rentacenter.com
Vice President of Investor Relations
(972) 801-1214
david.carpenter@rentacenter.com
Rent-A-Center, Inc. and Subsidiaries
STATEMENT OF EARNINGS HIGHLIGHTS
| Three Months Ended June 30, | ||||||||
| (In Thousands of Dollars, except per share data) | 2008 | 2007 | ||||||
Total Revenue |
$ | 719,031 | $ | 724,158 | ||||
Operating Profit |
74,434 | (1) | 87,024 | |||||
Net Earnings |
37,741 | 41,251 | ||||||
Diluted Earnings per Common Share |
$ | 0.56 | $ | 0.58 | ||||
Adjusted EBITDA |
$ | 96,271 | $ | 108,608 | ||||
Reconciliation to Adjusted EBITDA: |
||||||||
Earnings before Income Taxes |
$ | 59,984 | $ | 65,066 | ||||
Add back: |
||||||||
Restructuring Expense |
(15 | ) | — | |||||
Interest Expense, net |
14,450 | 21,958 | ||||||
Depreciation of Property Assets |
18,190 | 17,650 | ||||||
Amortization of Intangibles |
3,662 | 3,934 | ||||||
Adjusted EBITDA |
$ | 96,271 | $ | 108,608 | ||||
| Six Months Ended June 30, | |||||||||||||||||||
| 2008 | 2008 | 2007 | 2007 | ||||||||||||||||
| Before | After | Before | After | ||||||||||||||||
| Restructuring | Restructuring | Litigation | Litigation | ||||||||||||||||
| Expense | Expense | Expense | Expense | ||||||||||||||||
| (In Thousands of Dollars, except per share data) | (Non-GAAP) | (GAAP) | (Non-GAAP) | (GAAP) | |||||||||||||||
Total Revenue |
$ | 1,475,667 | $ | 1,475,667 | $ | 1,479,457 | $ | 1,479,457 | |||||||||||
Operating Profit |
154,859 | 151,974 | (2) | 184,429 | 133,179 | (3) | |||||||||||||
Net Earnings |
75,902 | 74,099 | (2) | 88,545 | 56,354 | (3) | |||||||||||||
Diluted Earnings per Common Share |
$ | 1.13 | $ | 1.10 | (2) | $ | 1.25 | $ | 0.79 | (3) | |||||||||
Adjusted EBITDA |
$ | 199,829 | $ | 199,829 | $ | 226,978 | $ | 226,978 | |||||||||||
Reconciliation to Adjusted EBITDA: |
|||||||||||||||||||
Earnings before Income Taxes |
$ | 121,346 | $ | 118,461 | $ | 140,136 | $ | 88,886 | |||||||||||
Add back: |
|||||||||||||||||||
Litigation Expense |
— | — | — | 51,250 | |||||||||||||||
Restructuring Expense |
— | 2,885 | — | — | |||||||||||||||
Interest Expense, net |
33,513 | 33,513 | 44,293 | 44,293 | |||||||||||||||
Depreciation of Property Assets |
36,378 | 36,378 | 34,577 | 34,577 | |||||||||||||||
Amortization of Intangibles |
8,592 | 8,592 | 7,972 | 7,972 | |||||||||||||||
Adjusted EBITDA |
$ | 199,829 | $ | 199,829 | $ | 226,978 | $ | 226,978 | |||||||||||
| (1) | Includes a $0.015 million pre-tax restructuring credit in the second quarter of 2008 related to the December 3, 2007 announced restructuring plan. The restructuring credit had no impact on the diluted earnings per share in the second quarter of 2008. | |
| (2) | Includes the effects of a $2.9 million pre-tax restructuring expense in the first quarter of 2008 as part of the December 3, 2007 announced restructuring plan. The restructuring expense reduced diluted earnings per share by approximately $0.03 for the six months ended June 30, 2008. | |
| (3) | Includes the effects of a $51.3 million pre-tax litigation expense in the first quarter of 2007 associated with the settlement in the Perez case. The litigation expense reduced diluted earnings per share by approximately $0.46 for the six months ended June 30, 2007. |
SELECTED BALANCE SHEET HIGHLIGHTS
| Selected Balance Sheet Data: (in Thousands of Dollars) | June 30, 2008 | June 30, 2007 | ||||||
Cash and Cash Equivalents |
$ | 75,100 | $ | 79,020 | ||||
Prepaid Expenses and Other Assets |
54,411 | 47,300 | ||||||
Rental Merchandise, net
|
||||||||
On Rent |
676,607 | 798,285 | ||||||
Held for Rent |
204,472 | 237,876 | ||||||
Total Assets |
2,538,780 | 2,726,243 | ||||||
Senior Debt |
788,011 | 932,974 | ||||||
Subordinated Notes Payable |
270,375 | 300,000 | ||||||
Total Liabilities |
1,517,374 | 1,753,831 | ||||||
Stockholders’ Equity |
1,021,406 | 972,412 | ||||||
Rent-A-Center, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF EARNINGS
| Three Months Ended June 30, | ||||||||
| 2008 | 2007 | |||||||
| (In Thousands of Dollars, except per share data) | Unaudited | |||||||
Store Revenue |
||||||||
Rentals and Fees |
$ | 634,618 | $ | 662,096 | ||||
Merchandise Sales |
55,703 | 39,584 | ||||||
Installment Sales |
9,246 | 7,646 | ||||||
Other |
10,589 | 6,570 | ||||||
| 710,156 | 715,896 | |||||||
Franchise Revenue |
||||||||
Franchisee Merchandise Sales |
7,650 | 6,955 | ||||||
Royalty Income and Fees |
1,225 | 1,307 | ||||||
Total Revenue |
719,031 | 724,158 | ||||||
Operating Expenses |
||||||||
Direct Store Expenses |
||||||||
Cost of Rentals and Fees |
145,511 | 145,927 | ||||||
Cost of Merchandise Sold |
45,167 | 29,948 | ||||||
Cost of Installment Sales |
3,790 | 3,129 | ||||||
Salaries and Other Expenses |
406,572 | 417,114 | ||||||
Franchise Cost of Merchandise Sold |
7,234 | 6,663 | ||||||
| 608,274 | 602,781 | |||||||
General and Administrative Expenses |
32,676 | 30,419 | ||||||
Amortization of Intangibles |
3,662 | 3,934 | ||||||
Restructuring Expense |
(15 | ) | — | |||||
Total Operating Expenses |
644,597 | 637,134 | ||||||
Operating Profit |
74,434 | 87,024 | ||||||
Interest Expense |
16,739 | 23,431 | ||||||
Interest Income |
(2,289 | ) | (1,473 | ) | ||||
Earnings before Income Taxes |
59,984 | 65,066 | ||||||
Income Tax Expense |
22,243 | 23,815 | ||||||
NET EARNINGS |
37,741 | 41,251 | ||||||
BASIC WEIGHTED AVERAGE SHARES |
66,684 | 69,822 | ||||||
BASIC EARNINGS PER COMMON SHARE |
$ | 0.57 | $ | 0.59 | ||||
DILUTED WEIGHTED AVERAGE SHARES |
67,360 | 70,764 | ||||||
DILUTED EARNINGS PER COMMON SHARE |
$ | 0.56 | $ | 0.58 | ||||
Rent-A-Center, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF EARNINGS
| Six Months Ended June 30, | ||||||||
| 2008 | 2007 | |||||||
| (In Thousands of Dollars, except per share data) | Unaudited | |||||||
Store Revenue |
||||||||
Rentals and Fees |
$ | 1,275,304 | $ | 1,322,209 | ||||
Merchandise Sales |
141,042 | 107,921 | ||||||
Installment Sales |
19,131 | 16,056 | ||||||
Other |
20,208 | 13,746 | ||||||
| 1,455,685 | 1,459,932 | |||||||
Franchise Revenue |
||||||||
Franchisee Merchandise Sales |
17,417 | 16,880 | ||||||
Royalty Income and Fees |
2,565 | 2,645 | ||||||
Total Revenue |
1,475,667 | 1,479,457 | ||||||
Operating Expenses |
||||||||
Direct Store Expenses |
||||||||
Cost of Rentals and Fees |
291,673 | 288,996 | ||||||
Cost of Merchandise Sold |
108,492 | 75,978 | ||||||
Cost of Installment Sales |
7,810 | 6,674 | ||||||
Salaries and Other Expenses |
823,986 | 837,841 | ||||||
Franchise Cost of Merchandise Sold |
16,630 | 16,150 | ||||||
| 1,248,591 | 1,225,639 | |||||||
General and Administrative Expenses |
63,625 | 61,417 | ||||||
Amortization of Intangibles |
8,592 | 7,972 | ||||||
Litigation Expense |
— | 51,250 | ||||||
Restructuring Expense |
2,885 | — | ||||||
Total Operating Expenses |
1,323,693 | 1,346,278 | ||||||
Operating Profit |
151,974 | 133,179 | ||||||
Interest Expense |
37,666 | 47,527 | ||||||
Interest Income |
(4,153 | ) | (3,234 | ) | ||||
Earnings before Income Taxes |
118,461 | 88,886 | ||||||
Income Tax Expense |
44,362 | 32,532 | ||||||
NET EARNINGS |
74,099 | 56,354 | ||||||
BASIC WEIGHTED AVERAGE SHARES |
66,697 | 70,054 | ||||||
BASIC EARNINGS PER COMMON SHARE |
$ | 1.11 | $ | 0.80 | ||||
DILUTED WEIGHTED AVERAGE SHARES |
67,267 | 71,051 | ||||||
DILUTED EARNINGS PER COMMON SHARE |
$ | 1.10 | $ | 0.79 | ||||