Rent-A-Center Announces Plan to Initiate Quarterly Cash Dividend
June 27 2019 - 8:30AM
Business Wire
Rent-A-Center, Inc. (the “Company”) (NASDAQ/NGS:RCII) today
announced that its Board of Directors approved initiation of a
quarterly cash dividend of $0.25 per share on its common stock
subject to completion of the refinancing of the Company’s existing
revolving credit facility and outstanding senior notes, which is
expected to occur in the third quarter of 2019. The first quarterly
dividend is expected to be declared in September 2019 and paid in
October 2019. The Company expects to enter into agreements with
respect to new credit facilities, which will replace its existing
revolving credit facility. Proceeds from the refinancing, together
with cash on hand, will be used at closing to redeem the Company’s
senior unsecured notes maturing in 2020 and 2021.
Mitch Fadel, Chief Executive Officer of Rent-A-Center, said,
“The Board’s decision to re-initiate a quarterly dividend reflects
our confidence in Rent-A-Center’s business and long-term growth
prospects. Balance sheet deleveraging, cost reductions, and solid
same store sales growth have dramatically strengthened our earnings
and cash flow. As a result, we are well positioned to return
substantial capital to shareholders while simultaneously investing
to capitalize on the significant growth opportunity in the kiosk
and virtual rent-to-own industry.”
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 2,200
stores in the United States, Mexico and Puerto Rico, and
approximately 1,100 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 320 rent-to-own stores operating under
the trade names of “Rent-A-Center,” “ColorTyme,” and “RimTyme.” For
additional information about the Company, please visit its website
at www.rentacenter.com.
This press release contains 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," "predict," "continue," "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. Factors that could cause or contribute to such
differences include, but are not limited to: capital market
conditions, including the Company’s ability to complete the
refinancing of its revolving credit facility expiring December 31,
2019, and senior notes maturing in November 2020 and May 2021; the
Company's available cash flow; changes in interest rates; adverse
changes in the economic conditions of the industries, countries or
markets that the Company serves; the Company’s ability to generate
sufficient cash flow to continue to pay dividends; 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, 2018, and its Quarterly Report on Form
10-Q for the quarter ended March 31, 2019.
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version on businesswire.com: https://www.businesswire.com/news/home/20190627005457/en/
Rent-A-Center, Inc. Maureen Short EVP, Chief Financial Officer
972-801-1899 maureen.short@rentacenter.com
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