April 10, 2017 / 11:34 AM / 5 months ago

BRIEF-Rent-A-Center announces new strategic plan to drive growth

April 10 (Reuters) - Rent-a-center Inc

* Announces new strategic plan to drive growth, improve profitability and deliver enhanced stockholder value

* Reestablishing 2x2 matrix cost-based approach as its foundational pricing strategy

* Targets revenue growth in low-single digits in 2018

* Sees EPS target of $1.20 - $1.40 for 2018

* Targets revenue growth in mid-single digits in 2019

* As a result of new plan expects 2018 target free cash flow $70 - $90 million

* Sees EPS target of $2.00 - $2.25 for 2019

* As a result of new plan expects 2019 target free cash flow $110 - $130 million

* J.P. Morgan is rent-a-center’s financial advisor and Winston & Strawn is serving as its legal advisor

* Improving early payout options that promote ownership, with expectation return on investment will increase from about 2.7x to 3.0x

* Anticipates initiatives will result in an estimated run-rate EBITDA improvement of approximately $65 million by 2018-2019

* Rent-A-Center-Steps to restore profitability in U.S. Core business is expected to result in estimated run-rate EBITDA improvement of about $40 million by 2018-2019 Source text for Eikon: Further company coverage:

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below