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Rent-A-Center (RCII) Expands LTO Solutions Via Acima Buyout
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Rent-A-Center, Inc. is investing in its omni-channel platform to offer customers a seamless experience across channels, markets, products and brands. Keeping in line with the same, the company has completed the buyout of Acima Holdings, which is a growing and profitable lease-to-own (“LTO”) fintech company. Rent-A-Center’s management is integrating Acima’s capabilities to craft a premier fintech platform across traditional and virtual LTO segments.
We note that Acima will be merged with the company’s Preferred Dynamix platform. The combined company, led by the Preferred Dynamix executive vice president Jason Hogg, expands the line-up of innovative fintech solutions for frictionless LTO transactions. Through this combination, customers can avail benefits of the flexible and seamless LTO offerings across the e-commerce, digital and mobile platforms.
On Dec 20, 2020, management informed that it has agreed to buy Acima Holdings LLC in a cash-and-stock transaction worth $1.65 billion. The deal comprised $1.273 billion in cash and around 10.8 million shares of the company’s common stock. The company had also obtained $1.825 billion in debt financing commitments from J.P. Morgan Securities LLC, Credit Suisse and HSBC Securities (USA) Inc. with respect to the Acima deal.
Management had earlier notified that the combined business will be reported under the Preferred Lease segment. Markedly, Acima operates in more than 15,000 active retail partner locations and e-commerce platforms. With Acima’s technology and team, Rent-A-Center looks to drive innovation and tap the emerging LTO omni-channel requirements of its e-commerce and retail partners.
What’s More?
Earlier this month, Rent-A-Center announced preliminary results for 2020 with relation to the financing for the acquisition of Acima. Management had cited that it concluded 2020 on a solid note, with estimated revenue growth of 5.4% for the year. An expected rise of 13.7% in same-store sales at the Rent-A-Center Business division and about 25% higher invoice volume for the Preferred Lease unit, both for the fourth quarter, fueled growth. We note that the Preferred Lease wing witnessed gains despite supply chain limitations in the same quarter. Moreover, the company’s Rent-A-Center Business division performed well in the fourth quarter and aided robust adjusted EBITDA margin for 2020.
Depending on the preliminary estimates, management projected total revenues for 2020 of nearly $2,814 million. Moreover, the company forecasted adjusted EBITDA of $329-$333 million. Management had envisioned adjusted earnings per share of $3.51-$3.56 for 2020, indicating growth from $2.24 earned last year.
Impressively, the Plano, TX-based company has seen its shares jumped as much as 49.2% in the past three months, crushing the industry’s 13.3% rally. Rent-A-Center currently has a Zacks Rank #2 (Buy).
BJ’s Wholesale Club (BJ - Free Report) has a long-term earnings growth rate of 15.8% and a Zacks Rank #2.
Aaron’s (AAN - Free Report) has a long-term earnings growth rate of 5.2% and carries a Zacks Rank #2.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Rent-A-Center (RCII) Expands LTO Solutions Via Acima Buyout
Rent-A-Center, Inc. is investing in its omni-channel platform to offer customers a seamless experience across channels, markets, products and brands. Keeping in line with the same, the company has completed the buyout of Acima Holdings, which is a growing and profitable lease-to-own (“LTO”) fintech company. Rent-A-Center’s management is integrating Acima’s capabilities to craft a premier fintech platform across traditional and virtual LTO segments.
We note that Acima will be merged with the company’s Preferred Dynamix platform. The combined company, led by the Preferred Dynamix executive vice president Jason Hogg, expands the line-up of innovative fintech solutions for frictionless LTO transactions. Through this combination, customers can avail benefits of the flexible and seamless LTO offerings across the e-commerce, digital and mobile platforms.
On Dec 20, 2020, management informed that it has agreed to buy Acima Holdings LLC in a cash-and-stock transaction worth $1.65 billion. The deal comprised $1.273 billion in cash and around 10.8 million shares of the company’s common stock. The company had also obtained $1.825 billion in debt financing commitments from J.P. Morgan Securities LLC, Credit Suisse and HSBC Securities (USA) Inc. with respect to the Acima deal.
Management had earlier notified that the combined business will be reported under the Preferred Lease segment. Markedly, Acima operates in more than 15,000 active retail partner locations and e-commerce platforms. With Acima’s technology and team, Rent-A-Center looks to drive innovation and tap the emerging LTO omni-channel requirements of its e-commerce and retail partners.
What’s More?
Earlier this month, Rent-A-Center announced preliminary results for 2020 with relation to the financing for the acquisition of Acima. Management had cited that it concluded 2020 on a solid note, with estimated revenue growth of 5.4% for the year. An expected rise of 13.7% in same-store sales at the Rent-A-Center Business division and about 25% higher invoice volume for the Preferred Lease unit, both for the fourth quarter, fueled growth. We note that the Preferred Lease wing witnessed gains despite supply chain limitations in the same quarter. Moreover, the company’s Rent-A-Center Business division performed well in the fourth quarter and aided robust adjusted EBITDA margin for 2020.
Depending on the preliminary estimates, management projected total revenues for 2020 of nearly $2,814 million. Moreover, the company forecasted adjusted EBITDA of $329-$333 million. Management had envisioned adjusted earnings per share of $3.51-$3.56 for 2020, indicating growth from $2.24 earned last year.
Impressively, the Plano, TX-based company has seen its shares jumped as much as 49.2% in the past three months, crushing the industry’s 13.3% rally. Rent-A-Center currently has a Zacks Rank #2 (Buy).
Other Hot Consumer Discretionary Bets
Crocs (CROX - Free Report) has a long-term earnings growth rate of 15% and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BJ’s Wholesale Club (BJ - Free Report) has a long-term earnings growth rate of 15.8% and a Zacks Rank #2.
Aaron’s (AAN - Free Report) has a long-term earnings growth rate of 5.2% and carries a Zacks Rank #2.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>