Business Context and Reporting Period
This Form 8-K is filed by Rent-A-Center, Inc. (not Upbound Group, Inc.) on April 25, 2011. The filing serves to report the company's results of operations and financial condition for the quarter ended March 31, 2011, referencing 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. It explicitly states that detailed earnings information is contained in the attached press release (Exhibit 99.1). The document highlights the use of EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) as a non-GAAP financial measure.
- Non-GAAP Measure: EBITDA is presented as useful for evaluating the registrant and impacts financial covenants under senior credit facilities and the indenture for 6.25% senior unsecured notes due November 2020.
- Reconciliation: The press release includes a reconciliation of EBITDA to reported earnings before income taxes.
Material Changes
The filing text does not contain specific data regarding material changes in financial performance compared to the prior comparable period. Investors must refer to the attached press release for comparative analysis.
Guidance, Outlook, and Risks
Management Commentary: Management asserts that EBITDA is a useful supplemental metric for investors, particularly regarding debt covenants, but cautions that it should not be viewed as a substitute for GAAP financial information. They also note that this non-GAAP measure may differ from similar measures used by other companies.
Regulatory Status: Pursuant to General Instruction B.2 of Form 8-K, the information in this report and the accompanying exhibit is deemed "furnished" and not "filed" for purposes of Section 18 of the Securities Exchange Act of 1934. Consequently, it will not be incorporated by reference into filings under the Securities Act of 1933.
Investor Verification Checklist
- Verify the specific revenue, net income, and EBITDA figures in the attached Exhibit 99.1 Press Release, as they are not listed in the 8-K body text.
- Review the reconciliation of EBITDA to earnings before income taxes to understand the adjustments made.
- Confirm the status of financial covenants related to the senior credit facilities and the 6.25% senior unsecured notes due 2020.
- Note that the filing is "furnished" rather than "filed," which affects its legal incorporation into future registration statements.