Brent Shelton
Long/short equity, medium-term horizon, research analyst, mid-cap

Rent-A-Center Prepares To Release

Rent-A-Center, RCII, is undeniably the most successful operator in the Rent-To-Own segment for the last two decades. The company's acquisition-growth strategy implemented in 1993 took slightly over a decade to consolidate a vast majority of its' smaller and lesser profitable competitors. The roll-up strategy occurred in approximately 200 separate transactions beginning in 1993 and by 2006 the number of rent-to-own stores had grown from 27 to over 3400, generating revenue of over $7 billion. By 2009 they had reported an increase of over $2.5 billion over a ten year period. Unfortunately, as the company prepares to release 2013 year-end earnings investors will finally get a clear picture of the true cost of this inorganic growth. Although management already deemed this...

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