Business Context and Reporting Period
This Form 8-K is a current report filed by Rent-A-Center, Inc. on May 6, 2019. The filing serves to disclose the company's results of operations and financial condition for the quarter ended March 31, 2019. 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 filing explicitly highlights the use of two non-GAAP financial measures:
- EBITDA: Earnings before interest, taxes, depreciation, and amortization.
- Free Cash Flow: Used to provide additional information regarding liquidity.
Reconciliations to the most directly comparable GAAP measures for these non-GAAP metrics are stated to be included in Tables 3, 4, and 5 of the press release.
Material Changes and Debt Instruments
The filing does not detail specific material changes in financial performance versus prior periods within the text provided. However, it notes that EBITDA is a critical metric impacting financial covenants under the company's debt instruments, specifically:
- Senior credit facilities.
- 6.625% senior unsecured notes due November 2020.
- 4.75% senior unsecured notes due May 2021.
Management Commentary and Risks
Management commentary indicates that EBITDA and free cash flow are presented to assist investors in evaluating the company's liquidity and covenant compliance. The filing includes standard disclaimers regarding non-GAAP measures:
- These measures are supplemental and should not be viewed as a substitute for GAAP financial information.
- These measures may differ from similar metrics used by other companies.
- 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, meaning it will not be incorporated by reference into future filings under the Securities Act of 1933.
Investor Verification Checklist
- Review Exhibit 99.1 (the press release) for specific numerical data on revenue, net income, and cash flow for the quarter ended March 31, 2019.
- Examine Tables 3, 4, and 5 in the press release to verify the reconciliation between non-GAAP EBITDA/Free Cash Flow and 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 in this filing is "furnished" and not "filed," which affects its legal incorporation into future registration statements.