Business Context and Reporting Period
This Form 8-K is a current report filed by Rent-A-Center, Inc. on July 30, 2018. The filing serves to disseminate the company's earnings information for the quarter ended June 30, 2018, as detailed in the attached press release (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. It references a press release containing these details, specifically highlighting:
- EBITDA: The filing notes the inclusion of Earnings Before Interest, Taxes, Depreciation, and Amortization, a non-GAAP financial measure.
- Reconciliation: A reconciliation of EBITDA to reported earnings before income taxes is provided in the attached exhibit.
- Debt Instruments: The filing mentions financial covenants related to the company's senior credit facilities, 6.625% senior unsecured notes due November 2020, and 4.75% senior unsecured notes due May 2021.
Material Changes
The provided text does not contain specific data regarding material changes in financial performance compared to the prior comparable period. Investors must refer to the attached Exhibit 99.1 (Press Release) for comparative analysis.
Guidance, Outlook, and Management Commentary
Management Commentary: Management states that EBITDA is useful to investors because it impacts financial covenants under the company's senior credit facilities and indentures for its senior unsecured notes. They emphasize that this non-GAAP measure is supplemental and should not be considered a substitute for GAAP financial information.
Guidance and Risks: The filing text does not contain specific forward-looking guidance, risk factors, or contingencies beyond the standard disclosure regarding the limitations of non-GAAP measures.
Important Facts for Investor Verification
- Verify the specific revenue, net income, and EBITDA figures in the attached Exhibit 99.1 (Press Release dated July 30, 2018), as they are not listed in the 8-K body.
- Review the reconciliation of EBITDA to earnings before income taxes to understand adjustments made to GAAP figures.
- 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 information in Item 2.02 is deemed "furnished" and not "filed" for purposes of Section 18 of the Securities Exchange Act of 1934.