Business Context and Reporting Period
Company: Rent-A-Center, Inc. (Note: Metadata listed "Upbound Group, Inc." but the filing text identifies the registrant as Rent-A-Center, Inc.)
Filing Type: Form 8-K (Current Report)
Date of Report: January 31, 2011
Reporting Period: Quarter and fiscal year ended December 31, 2010
Key Financial Metrics
This Form 8-K serves as a notification of earnings results and does not contain specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity within the text provided. The actual financial data is contained in the attached press release (Exhibit 99.1).
Non-GAAP Measure Disclosed: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). The filing notes that EBITDA is used to evaluate financial covenants under the company's senior credit facilities and the indenture governing its 6 1/4% senior unsecured notes due November 2020.
Material Changes
The filing text does not provide specific comparative data or describe material changes versus the prior period. It references the attached press release for the detailed results of operations for the quarter and fiscal year ended December 31, 2010.
Guidance, Outlook, and Risks
Management Commentary: Management states that EBITDA is useful to investors for evaluating the company and monitoring financial covenants. However, they emphasize that EBITDA is a non-GAAP measure, should be considered supplemental, and is not a substitute for GAAP financial information.
Risks and Contingencies: The filing notes that non-GAAP measures may differ from similar measures presented by other companies. No specific operational risks or contingencies are detailed in the text of this 8-K.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release dated January 31, 2011) for specific revenue, net income, and EBITDA figures.
- Verify the reconciliation of EBITDA to earnings before income taxes as mentioned in the press release.
- Confirm the status of financial covenants related to the senior credit facilities and 6 1/4% senior unsecured notes due 2020.
- Compare the reported results against the prior year's performance using the data in the attached exhibit.