__
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report:
(Date of earliest event reported)
October 22, 2012
                                                       
RENT-A-CENTER, INC.
(Exact name of registrant as specified in charter)

 	 	 	 	 	
Delaware	 	0-25370	 	45-0491516	
(State or other jurisdiction of
incorporation or organization)	 	(Commission
File Number)	 	(IRS Employer
Identification No.)	
5501 Headquarters Drive
Plano, Texas 75024
(Address of principal executive offices and zip code)
(972) 801-1100
(Registrant's telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
                  
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions (see General Instruction A.2. below):

 	 	
¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425).	
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12).	
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)).	
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).	

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

 	

Item 2.02 Results of Operations and Financial Condition.
Attached hereto as Exhibit 99.1 is the Registrant's press release reflecting earnings information for the quarter ended September 30, 2012.
The press release contains information regarding EBITDA (earnings before interest, taxes, depreciation and amortization), which is a non-GAAP financial measure as defined in Item 10(e) of Regulation S-K. The press release also contains a reconciliation of EBITDA to the Registrant's reported earnings before income taxes. Management of the Registrant believes that presentation of EBITDA is useful to investors, as among other things, this information impacts certain financial covenants under the Registrant's senior credit facilities and the indenture governing its 6   5 / 8 % senior unsecured notes due November 2020. While management believes this non-GAAP financial measure is useful in evaluating the Registrant, this information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Further, the non-GAAP financial measure may differ from similar measures presented by other companies.
Pursuant to General Instruction B.2. of Form 8-K, all of the information contained in this Form 8-K and the accompanying exhibit shall be deemed to be "furnished" and not "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and, therefore, shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit 99.1 Press Release, dated October 22, 2012.

2

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 	 	 	 	 	
 	 	 	 	 	
  	 	RENT-A-CENTER, INC.	
 	 	 	
Date: October 22, 2012	 	By:	 	/s/ Robert D. Davis	
 	 	 	 	Robert D. Davis	
 	 	 	 	Executive Vice President - Finance, Chief
Financial Officer and Treasurer	
 
3

EXHIBIT INDEX

 	 	 	
 	 	 	
Exhibit No.	 	Description	
99.1	 	Press release, dated October 22, 2012	

Exhibit 99.1
For Immediate Release:
RENT-A-CENTER, INC. REPORTS
THIRD QUARTER 2012 RESULTS
Total Revenues Increased 5.0% 
Same Store Sales Increased 1.2%

Diluted Earnings per Share of $0.67 
Board Increases Stock Repurchase Authorization by $200 million
______________________________________________
Plano, Texas, October 22, 2012 — Rent-A-Center, Inc. (the "Company") (NASDAQ/NGS: RCII), the nation's largest rent-to-own operator, today announced revenues and earnings for the quarter ended September 30, 2012.
Third Quarter 2012 Results
Total revenues for the quarter ended September 30, 2012, were $739.3 million, an increase of $35.0 million from total revenues of $704.3 million for the same period in the prior year. This 5.0% increase in total revenues was primarily due to growth in the RAC Acceptance segment. For the quarter ended September 30, 2012, the same store sales increase of 1.2% was primarily attributable to growth in the RAC Acceptance segment, partially offset by a decrease in the Core U.S. segment.
Net earnings and net earnings per diluted share for the three months ended September 30, 2012, were $39.9 million and $0.67, respectively, as compared to $31.2 million and $0.52, respectively, for the same period in the prior year. Net earnings and net earnings per diluted share for the three months ended September 30, 2011, were reduced by $7.6 million, and approximately $0.08 per share, respectively, due to a pre-tax restructuring charge related to store closings, as discussed below.
Net earnings per diluted share for the three months ended September 30, 2012, were $0.67, as compared to adjusted net earnings per diluted share of $0.60, when excluding the pre-tax restructuring charge above, for the three months ended September 30, 2011, an increase of 11.7%. These results include dilution related to the Company's international growth initiatives of approximately $0.10 per share for the three months ended September 30, 2012, and $0.04 per share for the same period in the prior year.
“We are generally pleased with our results in the quarter, as total revenues increased 5% and earnings per diluted share increased approximately 12%,” said Mark E. Speese, the Company's Chairman and Chief Executive Officer. “The RAC Acceptance segment continued to perform commendably, growing revenue over 60% from a year ago to $84 million, with a gross margin of 59.3% and an operating profit of over $7 million and ending the quarter with 882 stores,” Speese continued. “For the first nine months of the year, each of our business segments has grown their revenue and all segments combined grew 8.4% and, with the exception of our international segment, have contributed to our year-to-date earnings per diluted share of $2.28. As such, we remain optimistic in achieving our 2012 total revenue and earnings per diluted share guidance outlined in our 2011 fourth quarter earnings press release,” Speese concluded.

Nine Months Ended September 30, 2012 Results
Total revenues for the nine months ended September 30, 2012, were $2.324 billion, an increase of $179.6 million from total revenues of $2.145 billion for the same period in the prior year. This 8.4% increase in total revenues was primarily due to growth in the RAC Acceptance segment as well as growth in both the Core U.S. and International segments. Same store sales for the nine months ended September 30, 2012, increased 2.8%.
Net earnings and net earnings per diluted share for the nine months ended September 30, 2012, were $136.0 million and $2.28, respectively, as compared to $115.3 million and $1.84, respectively, for the same period in the prior year.
Net earnings and net earnings per diluted share for the nine months ended September 30, 2011, were impacted by the following significant items, as discussed below:
 	 	
•	A $7.6 million pre-tax restructuring charge, or approximately $0.08 per share, related to store closings;	
 	 	
•	A $4.9 million pre-tax restructuring charge, or approximately $0.05 per share, related to the acquisition of The Rental Store, Inc.;	
 	 	
•	A $7.3 million pre-tax impairment charge, or approximately $0.07 per share, related to the discontinuation of the financial services business; and	
 	 	
•	A $2.8 million pre-tax litigation expense, or approximately $0.03 per share, related to the settlement of wage and hour claims in California.	
Collectively, these items reduced net earnings per diluted share by approximately $0.23 for the nine months ended September 30, 2011.
Net earnings per diluted share for the nine months ended September 30, 2012, were $2.28, as compared to adjusted net earnings per diluted share for the nine months ended September 30, 2011, of $2.07 when excluding the items above, an increase of 10.1%. These results include dilution related to the Company's international growth initiatives of approximately $0.25 per share for the nine months ended September 30, 2012, and $0.08 per share for the same period in the prior year.
The Company also announced today that its Board of Directors has increased the authorization for stock repurchases under the Company's common stock repurchase plan from $800 million to $1 billion. Under the Company's common stock repurchase plan, shares may, from time to time, be repurchased in the open market or in privately negotiated transactions at amounts considered appropriate by the Company. To date, the Company has repurchased a total of 30,189,738 shares for an aggregate purchase price of approximately $745.6 million since the inception of the plan. During the nine months ended September 30, 2012, the Company repurchased 866,985 shares for approximately $30.1 million in cash.
Through the nine months ended September 30, 2012, the Company generated cash flow from operations of approximately $258.7 million, while ending the quarter with approximately $81.8 million of cash on hand .   Also, reflecting continued confidence in its strong cash flows by returning cash to stockholders, the Company will pay its tenth consecutive quarterly cash dividend on October 24, 2012.

2012 Guidance
The Company began presenting segmented financial information commencing with its Annual Report on Form 10-K for the year ended December 31, 2011. Accordingly, quarterly segmented operating results were initiated with the quarter ended March 31, 2012. The Company is committed to high levels of disclosure and transparency with respect to its operating segments.
In addition, the Company made certain changes to its guidance practices. Beginning with the fourth quarter 2011 earnings press release, the Company began providing annual guidance with quarterly updates on the metrics below. The Company will no longer provide quarterly earnings per share guidance; however, the Company has made available on its web site (investor.rentacenter.com) a range of the percentage contribution to full year diluted earnings per share by quarter based on historical results since 2009. In future years, the Company will provide its initial annual guidance for the following fiscal year with the fourth quarter earnings press release. We believe these changes in guidance practice will allow management to focus on the Company's long-term performance and the execution of our strategic plan as communicated in November 2010.
2012 Guidance
 	 	
•	7.0% to 8.5% total revenue growth.	
 	 	
◦	Low single digit growth in the Core U.S.	
 	 	
◦	Over $325 million contribution from RAC Acceptance.	
 	 	
•	Approximately 2.0% same store sales growth.	
 	 	
◦	The fourth quarter same store sales growth is expected to be approximately 2.0%.	
 	 	
•	Approximately 175 basis points gross profit margin decrease.	
 	 	
•	Approximately 50 basis points operating profit margin decrease.	
 	 	
•	Diluted earnings per share in the range of $3.05 to $3.15, including approximately $0.30 per share dilution related to our international growth initiatives, which now includes corporate allocations consistent with our segment reporting.	
 	 	
•	Capital expenditures of approximately $105 million.	
 	 	
•	The Company expects to open approximately 35 domestic rent-to-own store locations.	
 	 	
•	The Company expects to open approximately 300 domestic RAC Acceptance kiosks.	
 	 	
•	The Company expects to open approximately 40 rent-to-own store locations in Mexico.	
 	 	
•	The Company expects to open 6 rent-to-own store locations in Canada.	
 	 	
•	The 2012 guidance does not include the potential impact of any repurchases of common stock the Company may make, changes in future dividends, material changes in outstanding indebtedness, or the potential impact of acquisitions, dispositions or store closures that may be completed or occur after October 22, 2012.	

2011 Significant Items
Restructuring Charges.  As previously reported, the Company recorded a $7.6 million pre-tax restructuring charge during the third quarter of 2011 related to lease terminations, fixed asset disposals and other miscellaneous items in connection with the closure of eight Home Choice stores in Illinois and 24 RAC Limited locations within third party grocery stores, all of which had been operated on a test basis, as well as the closure of 26 core rent-to-own stores following the sale of all customer accounts at those locations. This pre-tax restructuring charge of $7.6 million reduced net earnings per diluted share by approximately $0.08 in both the three month and nine month periods ended September 30, 2011.
Also previously reported, the Company recorded a $4.9 million pre-tax restructuring charge during the second quarter of 2011 related to post-acquisition lease terminations in connection with the December 2010 acquisition of The Rental Store, Inc. For the nine months ended September 30, 2011, this pre-tax restructuring charge of $4.9 million reduced net earnings per diluted share by approximately $0.05.
Financial Services Charge. As previously reported, the Company recorded a pre-tax impairment charge of $7.3 million during the first quarter of 2011 related primarily to loan write-downs, fixed asset disposals (store reconstruction) and other miscellaneous items in connection with the discontinuation of the financial services business. For the nine months ended September 30, 2011, this pre-tax impairment charge of $7.3 million reduced net earnings per diluted share by approximately $0.07.
Settlement of Wage & Hour Claims in California. As previously reported, the Company recorded a $2.8 million pre-tax litigation expense during the first quarter of 2011 in connection with the settlement of certain putative class actions pending in California alleging various claims, including violations of California wage and hour laws. For the nine months ended September 30, 2011, this pre-tax litigation expense of $2.8 million reduced net earnings per diluted share by approximately $0.03.
- - -

Rent-A-Center, Inc. will host a conference call to discuss the third quarter results, guidance and other operational matters on Tuesday morning, October 23, 2012, at 10:45 a.m. ET. For a live webcast of the call, visit http://investor.rentacenter.com.  Certain financial and other statistical information that will be discussed during the conference call will also be provided on the same website.
Rent-A-Center, Inc., headquartered in Plano, Texas, is the largest rent-to-own operator in North America, focused on improving the quality of life for its customers by providing them the opportunity to obtain ownership of high-quality, durable goods such as consumer electronics, appliances, computers, furniture and accessories, under flexible rental purchase agreements with no long-term obligation. The Company owns and operates approximately 3,100 stores in the United States, Canada, Mexico and Puerto Rico, and approximately 880 RAC Acceptance kiosk locations in the United States and Puerto Rico. ColorTyme, Inc., a wholly owned subsidiary of the Company, is a national franchiser of approximately 220 rent-to-own stores operating under the trade name of "ColorTyme." For additional information about the Company, please visit www.rentacenter.com.

This press release and the guidance above contain forward-looking statements that involve risks and uncertainties. Such forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "could," "estimate," "should," "anticipate," or "believe," or the negative thereof or variations thereon or similar terminology. Although the Company believes that the expectations reflected in such forward-looking statements will prove to be correct, the Company can give no assurance that such expectations will prove to have been correct. The actual future performance of the Company could differ materially from such statements. Factors that could cause or contribute to such differences include, but are not limited to: uncertainties regarding the ability to open new locations; the Company's ability to acquire additional stores or customer accounts on favorable terms; the Company's ability to control costs and increase profitability; the Company's ability to enhance the performance of acquired stores; the Company's ability to retain the revenue associated with acquired customer accounts; the Company's ability to identify and successfully market products and services that appeal to its customer demographic; the Company's ability to enter into new and collect on its rental or lease purchase agreements; the passage of legislation adversely affecting the rent-to-own industry; the Company's failure to comply with applicable statutes or regulations governing its transactions; changes in interest rates; changes in the unemployment rate; economic pressures, such as high fuel costs, affecting the disposable income available to the Company's current and potential customers; the general strength of the economy and other economic conditions affecting consumer preferences and spending; changes in the Company's stock price, the number of shares of common stock that it may or may not repurchase, and future dividends, if any; changes in estimates relating to self-insurance liabilities and income tax and litigation reserves; changes in the Company's effective tax rate; fluctuations in foreign currency exchange rates; information security costs; the Company's ability to maintain an effective system of internal controls; changes in the number of share-based compensation grants, methods used to value future share-based payments and changes in estimated forfeiture rates with respect to share-based compensation; the resolution of the Company's litigation; and the other risks detailed from time to time in the Company's SEC reports, including but not limited to, its annual report on Form 10-K for the year ended December 31, 2011 and its quarterly reports on Form 10-Q for the quarters ended March 31, 2012 and June 30, 2012 . You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as required by law, the Company is not obligated to publicly release any revisions to these forward-looking statements to reflect the events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.
Contact for Rent-A-Center, Inc.:
David E. Carpenter
Vice President of Investor Relations
(972) 801-1214
david.carpenter@rentacenter.com

Rent-A-Center, Inc. and Subsidiaries
STATEMENT OF EARNINGS HIGHLIGHTS

  	 	Three Months Ended September 30,	 	
 	 	2012	 	 	2011	 	 	2011	 	
 	 	After	 	 	Before	 	 	After	 	
 	 	Significant Items	 	 	Significant Items	 	 	Significant Items	 	
 	 	(GAAP	 	 	(Non-GAAP	 	 	(GAAP	 	
(In thousands of dollars, except per share data)	 	Earnings)	 	 	Earnings)	 	 	Earnings)	 	
Total Revenues	 	$	739,314	
 	 	 	$	704,271	
 	 	 	$	704,271	
 	 	
Operating Profit	 	 	68,113	
 	 	 	 	65,382	
 	 	 	 	57,796	
 	(1) 	
Net Earnings	 	 	39,910	
 	 	 	 	36,033	
 	 	 	 	31,224	
 	(1) 	
Diluted Earnings per Common Share	 	$	0.67	
 	 	 	$	0.60	
 	 	 	$	0.52	
 	(1) 	
Adjusted EBITDA	 	$	88,972	
 	 	 	$	82,750	
 	 	 	$	82,750	

Reconciliation to Adjusted EBITDA:	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	
Earnings Before Income Taxes	 	$	60,184	
 	 	 	$	56,662	
 	 	 	$	49,076	
 	 	
Add back:	 	 	 	 	 	 	 	 	 	 	 	 	
Restructuring Charge	 	 	—	
 	 	 	 	—	
 	 	 	 	7,586	
 	 	
Interest Expense, net	 	 	7,929	
 	 	 	 	8,720	
 	 	 	 	8,720	
 	 	
Depreciation of Property Assets	 	 	18,412	
 	 	 	 	16,107	
 	 	 	 	16,107	
 	 	
Amortization and Write-down of Intangibles	 	 	2,447	
 	 	 	 	1,261	
 	 	 	 	1,261	

Adjusted EBITDA	 	$	88,972	
 	 	 	$	82,750	
 	 	 	$	82,750	

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
  	 	Nine Months Ended September 30,	 	
 	 	2012	 	 	2011	 	 	2011	 	
 	 	After	 	 	Before	 	 	After	 	
 	 	Significant Items	 	 	Significant Items	 	 	Significant Items	 	
 	 	(GAAP	 	 	(Non-GAAP	 	 	(GAAP	 	
(In thousands of dollars, except per share data)	 	Earnings)	 	 	Earnings)	 	 	Earnings)	 	
Total Revenues	 	$	2,324,266	
 	 	 	$	2,144,702	
 	 	 	$	2,144,702	
 	 	
Operating Profit	 	 	239,174	
 	 	 	 	234,006	
 	 	 	 	211,367	
 	(1)(2)(3)(4) 	
Net Earnings	 	 	136,033	
 	 	 	 	129,559	
 	 	 	 	115,342	
 	(1)(2)(3)(4) 	
Diluted Earnings per Common Share	 	$	2.28	
 	 	 	$	2.07	
 	 	 	$	1.84	
 	(1)(2)(3)(4) 	
Adjusted EBITDA	 	$	299,181	
 	 	 	$	285,195	
 	 	 	$	285,195	

Reconciliation to Adjusted EBITDA:	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings Before Income Taxes	 	$	214,228	
 	 	 	$	206,304	
 	 	 	$	183,665	
 	 	
Add back:	 	 	 	 	 	 	 	 	 	 	 	 	
Restructuring Charge	 	 	—	
 	 	 	 	—	
 	 	 	 	12,519	
 	 	
Impairment Charge	 	 	—	
 	 	 	 	—	
 	 	 	 	7,320	
 	 	
Litigation Expense	 	 	—	
 	 	 	 	—	
 	 	 	 	2,800	
 	 	
Interest Expense, net	 	 	24,946	
 	 	 	 	27,702	
 	 	 	 	27,702	
 	 	
Depreciation of Property Assets	 	 	54,744	
 	 	 	 	47,938	
 	 	 	 	47,938	
 	 	
Amortization and Write-down of Intangibles	 	 	5,263	
 	 	 	 	3,251	
 	 	 	 	3,251	

Adjusted EBITDA	 	$	299,181	
 	 	 	$	285,195	
 	 	 	$	285,195	
 	 	
(1) Includes the effects of a $7.6 million pre-tax restructuring charge in the third quarter of 2011 related to the closure of eight Home Choice stores in Illinois and 24 RAC Limited locations within third party grocery stores, as well as the closure of 26 core rent-to-own stores following the sale of all customer accounts at these locations. The charge reduced net earnings per diluted share by approximately $0.08 for both the three and nine month periods ended September 30, 2011.
(2) Includes the effects of a $4.9 million pre-tax restructuring charge in the second quarter of 2011 for lease terminations related to The Rental Store acquisition. The charge reduced net earnings per diluted share by approximately $0.05 for the nine month period ended September 30, 2011.

(3) Includes the effects of a $7.3 million pre-tax impairment charge in the first quarter of 2011 related to the discontinuation of the financial services business. The charge reduced net earnings per diluted share by approximately $0.07 for the nine month period ended September 30, 2011.
(4) Includes the effects of a $2.8 million pre-tax litigation expense in the first quarter of 2011 related to the settlement of wage and hour claims in California. The charge reduced net earnings per diluted share by approximately $0.03 for the nine month period ended September 30, 2011.

SELECTED BALANCE SHEET HIGHLIGHTS

 	 	 	 	 	 	 	 	 	 	 	
  	 	September 30,	 	
(In thousands of dollars)	 	2012	 	 	2011	 	
Cash and Cash Equivalents	 	$	81,800	
 	 	 	$	76,025	
 	 	
Receivables, net	 	 	44,284	
 	 	 	 	43,441	
 	 	
Prepaid Expenses and Other Assets	 	 	71,914	
 	 	 	 	65,366	
 	 	
Rental Merchandise, net	 	 	 	 	 	 	 	 	
On Rent	 	 	733,724	
 	 	 	 	689,975	
 	 	
Held for Rent	 	 	214,158	
 	 	 	 	187,342	
 	 	
Total Assets	 	$	2,799,915	
 	 	 	$	2,666,517	

Senior Debt	 	$	293,300	
 	 	 	$	388,340	
 	 	
Senior Notes	 	 	300,000	
 	 	 	 	300,000	
 	 	
Total Liabilities	 	 	1,339,117	
 	 	 	 	1,347,147	
 	 	
Stockholders' Equity	 	$	1,460,798	
 	 	 	$	1,319,370	

Rent-A-Center, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF EARNINGS

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Three Months Ended September 30,	 	Nine Months Ended September 30,	
 	2012	 	2011	 	2012	 	2011	
(In thousands, except per share data)	Unaudited	 	Unaudited	
Revenues	 	 	 	 	 	
Store	 	 	 	 	 	 	 	
Rentals and fees	$	652,059	
 	 	$	622,474	
 	 	$	1,989,027	
 	 	$	1,850,698	
 	
Merchandise sales	58,854	
 	 	52,802	
 	 	242,335	
 	 	203,041	
 	
Installment sales	15,560	
 	 	16,348	
 	 	49,225	
 	 	49,606	
 	
Other	2,811	
 	 	4,147	
 	 	12,280	
 	 	13,629	
 	
Franchise	 	 	 	 	 	 	 	
Merchandise sales	8,697	
 	 	7,250	
 	 	27,332	
 	 	23,921	
 	
Royalty income and fees	1,333	
 	 	1,250	
 	 	4,067	
 	 	3,807	
 	
 	739,314	
 	 	704,271	
 	 	2,324,266	
 	 	2,144,702	
 	
Cost of revenues	 	 	 	 	 	 	 	
Store	 	 	 	 	 	 	 	
Cost of rentals and fees	158,805	
 	 	142,796	
 	 	481,954	
 	 	417,740	
 	
Cost of merchandise sold	47,497	
 	 	43,170	
 	 	192,038	
 	 	151,259	
 	
Cost of installment sales	5,376	
 	 	5,655	
 	 	17,402	
 	 	17,601	
 	
Franchise cost of merchandise sold	8,295	
 	 	6,926	
 	 	26,141	
 	 	22,875	
 	
 	219,973	
 	 	198,547	
 	 	717,535	
 	 	609,475	
 	
Gross profit	519,341	
 	 	505,724	
 	 	1,606,731	
 	 	1,535,227	
 	
Operating expenses	 	 	 	 	 	 	 	
Salaries and other expenses	412,567	
 	 	405,633	
 	 	1,255,405	
 	 	1,197,922	
 	
General and administrative expenses	36,214	
 	 	33,448	
 	 	106,889	
 	 	100,048	
 	
Amortization and write-down of intangibles	2,447	
 	 	1,261	
 	 	5,263	
 	 	3,251	
 	
Restructuring charge	—	
 	 	7,586	
 	 	—	
 	 	12,519	
 	
Impairment charge	—	
 	 	—	
 	 	—	
 	 	7,320	
 	
Litigation expense	—	
 	 	—	
 	 	—	
 	 	2,800	
 	
 	451,228	
 	 	447,928	
 	 	1,367,557	
 	 	1,323,860	
 	
Operating profit	68,113	
 	 	57,796	
 	 	239,174	
 	 	211,367	
 	
Interest expense	8,096	
 	 	8,811	
 	 	25,416	
 	 	28,184	
 	
Interest income	(167	)	 	(91	)	 	(470	)	 	(482	)	
Earnings before income taxes	60,184	
 	 	49,076	
 	 	214,228	
 	 	183,665	
 	
Income tax expense	20,274	
 	 	17,852	
 	 	78,195	
 	 	68,323	
 	
NET EARNINGS	$	39,910	
 	 	$	31,224	
 	 	$	136,033	
 	 	$	115,342	

Basic weighted average shares	58,882	
 	 	60,030	
 	 	59,098	
 	 	61,944	

Basic earnings per common share	$	0.68	
 	 	$	0.52	
 	 	$	2.30	
 	 	$	1.86	

Diluted weighted average shares	59,312	
 	 	60,504	
 	 	59,609	
 	 	62,648	

Diluted earnings per common share	$	0.67	
 	 	$	0.52	
 	 	$	2.28	
 	 	$	1.84	

Rent-A-Center, Inc. and Subsidiaries

SEGMENT INFORMATION HIGHLIGHTS

(In thousands of dollars)	Three Months Ended September 30, 2012	
 	Core U.S.	 	RAC Acceptance	 	International	 	ColorTyme	 	Total	
Revenue	$	634,575	
 	 	$	83,838	
 	 	$	10,871	
 	 	$	10,030	
 	 	$	739,314	
 	
Gross profit	460,353	
 	 	49,737	
 	 	7,516	
 	 	1,735	
 	 	519,341	
 	
Operating profit	69,544	
 	 	7,259	
 	 	(9,046	)	 	356	
 	 	68,113	
 	
Depreciation of property assets	15,981	
 	 	936	
 	 	1,475	
 	 	20	
 	 	18,412	
 	
Amortization and write-down of intangibles	583	
 	 	897	
 	 	967	
 	 	—	
 	 	2,447	
 	
Capital expenditures	22,056	
 	 	1,191	
 	 	1,536	
 	 	—	
 	 	24,783	

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(In thousands of dollars)	Three Months Ended September 30, 2011	
 	Core U.S.	 	RAC Acceptance	 	International	 	ColorTyme	 	Total	
Revenue	$	639,806	
 	 	$	51,310	
 	 	$	4,655	
 	 	$	8,500	
 	 	$	704,271	
 	
Gross profit	470,185	
 	 	30,717	
 	 	3,248	
 	 	1,574	
 	 	505,724	
 	
Operating profit	63,590	
 	 	(3,356	)	 	(3,342	)	 	904	
 	 	57,796	
 	
Depreciation of property assets	14,890	
 	 	595	
 	 	595	
 	 	27	
 	 	16,107	
 	
Amortization and write-down of intangibles	365	
 	 	896	
 	 	—	
 	 	—	
 	 	1,261	
 	
Capital expenditures	28,901	
 	 	1,643	
 	 	2,219	
 	 	—	
 	 	32,763	

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(In thousands of dollars)	Nine Months Ended September 30, 2012	
 	Core U.S.	 	RAC Acceptance	 	International	 	ColorTyme	 	Total	
Revenue	$	2,016,761	
 	 	$	248,626	
 	 	$	27,480	
 	 	$	31,399	
 	 	$	2,324,266	
 	
Gross profit	1,444,824	
 	 	137,524	
 	 	19,125	
 	 	5,258	
 	 	1,606,731	
 	
Operating profit	244,215	
 	 	17,024	
 	 	(23,617	)	 	1,552	
 	 	239,174	
 	
Depreciation of property assets	47,689	
 	 	2,620	
 	 	4,366	
 	 	69	
 	 	54,744	
 	
Amortization and write-down of intangibles	1,606	
 	 	2,690	
 	 	967	
 	 	—	
 	 	5,263	
 	
Capital expenditures	59,089	
 	 	3,582	
 	 	10,432	
 	 	—	
 	 	73,103	
 	
Rental merchandise, net	 	 	 	 	 	 	 	 	 	
On rent	534,812	
 	 	184,372	
 	 	14,540	
 	 	—	
 	 	733,724	
 	
Held for rent	204,235	
 	 	3,099	
 	 	6,824	
 	 	—	
 	 	214,158	
 	
Total assets	2,464,875	
 	 	265,496	
 	 	67,907	
 	 	1,637	
 	 	2,799,915	

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(In thousands of dollars)	Nine Months Ended September 30, 2011	
 	Core U.S.	 	RAC Acceptance	 	International	 	ColorTyme	 	Total	
Revenue	$	1,973,465	
 	 	$	130,615	
 	 	$	12,894	
 	 	$	27,728	
 	 	$	2,144,702	
 	
Gross profit	1,443,518	
 	 	77,761	
 	 	9,095	
 	 	4,853	
 	 	1,535,227	
 	
Operating profit	228,206	
 	 	(11,482	)	 	(7,721	)	 	2,364	
 	 	211,367	
 	
Depreciation of property assets	44,942	
 	 	1,520	
 	 	1,370	
 	 	106	
 	 	47,938	
 	
Amortization and write-down of intangibles	565	
 	 	2,686	
 	 	—	
 	 	—	
 	 	3,251	
 	
Capital expenditures	77,168	
 	 	4,362	
 	 	10,449	
 	 	—	
 	 	91,979	
 	
Rental merchandise, net	 	 	 	 	 	 	 	 	 	
On rent	565,186	
 	 	118,995	
 	 	5,794	
 	 	—	
 	 	689,975	
 	
Held for rent	181,592	
 	 	1,846	
 	 	3,904	
 	 	—	
 	 	187,342	
 	
Total assets	2,437,063	
 	 	197,485	
 	 	29,196	
 	 	2,773	
 	 	2,666,517	

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Three Months Ended September 30, 2012	
 	Core U.S.	 	RAC Acceptance	 	International	 	ColorTyme	 	Total	
Locations at beginning of period	2,973	
 	 	811	
 	 	99	
 	 	219	
 	 	4,102	
 	
New location openings	11	
 	 	100	
 	 	16	
 	 	5	
 	 	132	
 	
Acquired locations remaining open	2	
 	 	—	
 	 	—	
 	 	—	
 	 	2	
 	
Closed locations	 	 	 	 	 	 	 	 	 	
Merged with existing locations	2	
 	 	29	
 	 	1	
 	 	—	
 	 	32	
 	
Sold or closed with no surviving location	1	
 	 	—	
 	 	—	
 	 	4	
 	 	5	
 	
Locations at end of period	2,983	
 	 	882	
 	 	114	
 	 	220	
 	 	4,199	
 	
Acquired locations closed and accounts merged with existing locations	9	
 	 	—	
 	 	—	
 	 	—	
 	 	9	

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Three Months Ended September 30, 2011	
 	Core U.S.	 	RAC Acceptance	 	International	 	ColorTyme	 	Total	
Locations at beginning of period	2,989	
 	 	611	
 	 	33	
 	 	210	
 	 	3,843	
 	
New location openings	16	
 	 	120	
 	 	11	
 	 	5	
 	 	152	
 	
Acquired locations remaining open	5	
 	 	2	
 	 	—	
 	 	—	
 	 	7	
 	
Closed locations	 	 	 	 	 	 	 	 	 	
Merged with existing locations	16	
 	 	3	
 	 	—	
 	 	—	
 	 	19	
 	
Sold or closed with no surviving location	36	
 	 	9	
 	 	—	
 	 	2	
 	 	47	
 	
Locations at end of period	2,958	
 	 	721	
 	 	44	
 	 	213	
 	 	3,936	
 	
Acquired locations closed and accounts merged with existing locations	23	
 	 	—	
 	 	—	
 	 	—	
 	 	23	

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Nine Months Ended September 30, 2012	
 	Core U.S.	 	RAC Acceptance	 	International	 	ColorTyme	 	Total	
Locations at beginning of period	2,994	
 	 	750	
 	 	80	
 	 	216	
 	 	4,040	
 	
New location openings	23	
 	 	222	
 	 	36	
 	 	11	
 	 	292	
 	
Acquired locations remaining open	2	
 	 	—	
 	 	—	
 	 	—	
 	 	2	
 	
Closed locations	 	 	 	 	 	 	 	 	
 	
Merged with existing locations	31	
 	 	76	
 	 	1	
 	 	—	
 	 	108	
 	
Sold or closed with no surviving location	5	
 	 	14	
 	 	1	
 	 	7	
 	 	27	
 	
Locations at end of period	2,983	
 	 	882	
 	 	114	
 	 	220	
 	 	4,199	
 	
Acquired locations closed and accounts merged with existing locations	15	
 	 	—	
 	 	—	
 	 	—	
 	 	15	

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Nine Months Ended September 30, 2011	
 	Core U.S.	 	RAC Acceptance	 	International	 	ColorTyme	 	Total	
Locations at beginning of period	2,985	
 	 	384	
 	 	23	
 	 	209	
 	 	3,601	
 	
New location openings	31	
 	 	359	
 	 	21	
 	 	8	
 	 	419	
 	
Acquired locations remaining open	5	
 	 	5	
 	 	—	
 	 	2	
 	 	12	
 	
Closed locations	 	 	 	 	 	 	 	 	 	
Merged with existing locations	24	
 	 	9	
 	 	—	
 	 	6	
 	 	39	
 	
Sold or closed with no surviving location	39	
 	 	18	
 	 	—	
 	 	—	
 	 	57	
 	
Locations at end of period	2,958	
 	 	721	
 	 	44	
 	 	213	
 	 	3,936	
 	
Acquired locations closed and accounts merged with existing locations	29	
 	 	—	
 	 	—	
 	 	—	
 	 	29