RCII - Rent-A-Center slumps on reporting fall in Q4 net income adj. EBITDA and soft outlook

Rent-A-Center (NASDAQ:RCII) plunged 31.2% in after hours trade on missing Q4 earnings estimate; GAAP EPS stood at $0.15 compared to $1 in prior year period while non-GAAP EPS stood at $1.08 compared to $1.03 in the prior year period. GAAP operating profit was $36.8M compared to $54.6M in the prior year period; net income stood at $9.8M and included $60.4M of costs, net of tax, relating to special items, compared to $56.3M of GAAP net income and $1.1M of costs, net of tax, relating to special items in the prior year period. Adj. EBITDA decreased 22.4% Y/Y on a pro-forma basis to $124.4M led by an increase in delinquency and loss rates compared to the prior year period that benefited from government programs and stimulus payments. Adj. EBITDA margin narrowed to 10.6% from 15.1% prior led by higher delinquency and loss rates, supply chain disruptions and rising inflation rates. Consolidated revenues of $1.2B increased

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Rent-A-Center slumps on reporting fall in Q4 net income, adj. EBITDA and soft outlook