Rent-A-Center Inc (NASDAQ:RCII) reported its fourth-quarter results after the bell Tuesday.
The furniture and electronics rent-to-own company announced quarterly net profit of $34.8 million on a GAAP basis, or 65 cents per share. The figure topped the year-ago loss of $146.4 million, or $2.76 per share.
Rent-A-Center’s earnings were boosted by $1.45 per share gain thanks to the changes in the Tax Cuts and Jobs Act that passed in December 2017. The change resulted in the revaluation of net deferred tax liabilities to a 21% federal tax rate.
On an adjusted basis, the company reported a diluted loss per share of 41 cents, or a loss of $8.5 million during its fourth quarter. Adjusted earnings as a percent of revenue fell by 390 basis points in comparison to Rent-A-Center’s third quarter.
As far as revenue went, the figure fell by 6.6% on a consolidated basis to $639 million due in part to the company shuttering the doors of some of its Acceptance Now locations. Plus, its same-store-sales fell 2% and hurricane activity ate a chunk of the company’s sales.
Rent-A-Center’s Core U.S. fourth-quarter revenues fell 6% to $444.7 million as same-store sales in this category fell 3.6%. Its Acceptance Now fourth-quarter revenue declined 9.1% to $175.8 million due to the aforementioned closures, which included Conn’s and HHGregg locations, but same-store sales surged 6.7% year-over-year.
The company’s franchising fourth-quarter revenues reached $6.7 million, while operating profit was $1.5 million. Its corporate operating expenses fell by $6.6 million year-over-year as Rent-A-Center had lower executive and incentive compensation.
RCII stock plummeted 15.3% after the bell Tuesday.