=Rent-A-Center (RCII) reported earnings on Mon 30 Oct 2017 (a/h)

Rent-A-Center misses by $0.13, reports revs in-line; sequential improvements highlight 'progress on strategic plan'  

• Reports Q3 (Sep) loss of $0.15 per share, excluding items, $0.13 worse than the Capital IQ Consensus of ($0.02); revenues fell 7.2% year/year to $643.97 mln vs the $649.09 mln Capital IQ Consensus and generated $17.1 million in adjusted EBITDA.
• Consolidated same store sales improved 430 basis points versus the second quarter of 2017 due to the progress made on executing the Company's initiatives. ACCEPTANCE NOW third quarter revenues of $184.3 million decreased 5.2 percent primarily due to closures of the Company's Conn's and HHGregg locations as well as the impact from the recent hurricanes, which was partially offset by a same store sales increase of 7.9 percent.

Rent-A-Center to explore strategic and financial alternatives, suspends quarterly dividend; Chairman Steven Pepper resigns 

• The Company issued the following statement: "Rent-A-Center remains committed to taking actions that are in the best interests of the Company and all of its stockholders, as demonstrated by the commencement of what will be an extensive review of both strategic and financial alternatives. Throughout the review process, which will be overseen by the Company's directors, the Rent-A-Center management team will maintain its focus on executing the Company's comprehensive strategic plan to continue improving results across the business. We believe the efforts announced today will facilitate the Board's determination of the best path forward for maximizing value for all Company stockholders." There can be no assurance that the Board's exploration of strategic and financial alternatives will result in any particular action or any transaction being pursued, entered into or consummated, or the timing of any action or transaction. The Company does not intend to discuss or disclose developments with respect to this process unless and until the Board has approved a definitive course of action or the process is otherwise concluded. In addition, the Rent-A-Center Board has determined to suspend the Company's quarterly dividend until the process has concluded.
• The Company also announced today that Steven L. Pepper resigned from his position as director and Chairman of the Board of Rent-A-Center, with his resignation taking effect on October 31, 2017. Mr. Pepper informed the Company that he is resigning as a result of his disagreement with the Board's decision to initiate a process through which the Company will explore various strategic and financial alternatives.