Business Context and Reporting Period
This Form 8-K is a current report filed by Rent-A-Center, Inc. on February 25, 2019. The filing serves to announce the company's results of operations and financial condition for the quarter and fiscal year ended December 31, 2018. The detailed earnings information is contained in a press release attached as Exhibit 99.1.
Key Financial Metrics
The filing text itself does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. Instead, it references the attached press release (Exhibit 99.1) for these figures. The report highlights the following non-GAAP financial measures included in the press release:
- EBITDA: Earnings before interest, taxes, depreciation, and amortization.
- Free Cash Flow: Presented as a measure of liquidity.
Reconciliations to the most directly comparable GAAP measures are stated to be included in Tables 3, 4, and 5 of the press release.
Material Changes and Comparisons
The filing text does not explicitly detail material changes versus the prior comparable period or provide specific year-over-year growth figures. Investors must refer to the attached press release (Exhibit 99.1) for comparative financial data and analysis of changes.
Management Commentary, Risks, and Unusual Items
Management Commentary on Non-GAAP Measures:
- EBITDA: Management believes this metric is useful as it impacts financial covenants under the company's senior credit facilities and indentures governing its 6.625% senior unsecured notes (due November 2020) and 4.75% senior unsecured notes (due May 2021).
- Free Cash Flow: Management views this as providing meaningful additional information regarding the company's liquidity.
- Disclaimer: Management states these non-GAAP measures are supplemental and should not be considered a substitute for or superior to GAAP financial information. They may also differ from similar measures used by other companies.
Legal Status of Information: Pursuant to General Instruction B.2 of Form 8-K, the information in Item 2.02 and Exhibit 99.1 is deemed "furnished" and not "filed" for purposes of Section 18 of the Securities Exchange Act of 1934. Consequently, this information shall not be incorporated by reference in any filing under the Securities Act of 1933.
Important Facts for Investor Verification
- Verify the specific revenue, net income, and cash flow figures in the attached Exhibit 99.1 (Press Release), as they are not listed in the 8-K text.
- Review the reconciliation tables (Tables 3, 4, and 5) in the press release to understand the adjustments made to derive EBITDA and Free Cash Flow from GAAP measures.
- Confirm the status of financial covenants related to the 6.625% notes due 2020 and 4.75% notes due 2021 based on the reported EBITDA.
- Note that the earnings data is "furnished" rather than "filed," which affects its legal incorporation into future registration statements.