Rent-A-Center cruised in the second quarter after acquiring Acima Holdings during Q1 and enjoying gains in store-based revenues in the three months following.
Net income was $61.3 million, or 90 cents per diluted share, versus $38.5 million, or 70 cents per diluted share, in the year-previous quarter. Adjusted for special items, net income was $110.6 million, or $1.63 per share, versus $44.1 million, or 80 cents per share, in the prior-year period, Rent-A-Center reported.
Rent-A-Center topped a second-quarter Yahoo Finance-published analyst average adjusted earnings per share estimate of $1.35.
Second-quarter Rent-A-Center comparable sales were up 16.6% with a boost from 19% growth in e-commerce sales, the company stated. Consolidated revenues of $1.19 billion increased 74.6% year-over-year, primarily due to the acquisition of Acima Holdings, which closed in the 2021 first quarter. On a pro forma basis, revenues grew 21.6% in the period year over year led by strong organic growth in the Acima and Rent-A-Center Business segments, the company indicated. Store revenues were $1.16 billion versus $661.2 million in the 2020 period.
Operating profit for the second quarter of 2021 was $106.5 million compared to $53.6 million in the previous-year period, with growth primarily due to the Acima Acquisition and strong profitability in the Rent-A-Center Business Segment, partially offset by Acima Acquisition costs, according to the company. Acima has operated as a lease-to-own fintech company with a national presence in retail partner stores and e-commerce platforms.
Our business once again delivered outstanding performance in the second quarter as our omnichannel strategy has positioned us as a leading provider of lease-to-own solutions for consumers, which we believe is one of the most under-penetrated and dynamic sectors in the payments and fintech space
-Mitch Fadel, Rent-A-Center CEO
“Our business once again delivered outstanding performance in the second quarter as our omnichannel strategy has positioned us as a leading provider of lease-to-own solutions for consumers, which we believe is one of the most under-penetrated and dynamic sectors in the payments and fintech space,” said Mitch Fadel, Rent-A-Center CEO, in announcing the financial results. “Today’s consumers are increasingly seeking shopping options that are flexible, convenient and offer low financial risk. Rent-A-Center has the capabilities to meet these needs through its Acima virtual LTO platform and its highly trusted and convenient Rent-A-Center omnichannel solution.”
Fadel said Acima integration “is on track with our plans, and after the first full quarter owning the business, we are even more enthusiastic about the significant strategic value and growth opportunities. Earlier this week, we issued a press release highlighting some proprietary, groundbreaking Fintech innovations for the Acima Ecosystem, including the Acima Mobile Application, Acima Marketplace, Acima Browser Extension and the Acima LeasePay Card, that we believe could potentially double Acima’s total addressable market to a size approaching $100 billion. At the same time, our Rent-A-Center Business continues to perform exceptionally well, with mid-teens same-store-sales, generating highly profitable growth and a compelling evolving e-commerce platform.”
