Businessweek

Rent-A-Center, Inc. is a rent-to-own operator in North America. The company focuses on providing the opportunity to obtain ownership of durable products, such as consumer electronics, appliances, computers, furniture and accessories, under flexible rental purchase agreements with no long-term obligation. Segments The company reports four operating segments: Core U.S., RAC Acceptance, International, and ColorTyme. Core U.S: The Core U.S. segment consists of the company-owned stores located in the United States and Puerto Rico. As of December 31, 2012, the company operated 2,990 company-owned stores nationwide and in Puerto Rico, including 41 retail installment sales stores under the names ‘Get It Now’ and ‘Home Choice.’ RAC Acceptance: Through its RAC Acceptance segment, the company provides an on-site rent-to-own option at a third-party retailer’s location. In the event a retail purchase credit application is declined, the customer can be introduced to an in-store RAC Acceptance representative who explains an alternative transaction for acquiring the use and ownership of the merchandise. As of December 31, 2012, the company operated 966 kiosk locations inside furniture and electronics retailers located in 34 states and Puerto Rico. International: The International segment consists of the company-owned rent-to-own stores in Mexico and Canada. As of December 31, 2012, the company operated 90 stores. In Canada, the company sold 15 of its stores on December 31, 2012, and operates 18 stores. ColorTyme: ColorTyme is the company’s nationwide franchisor of rent-to-own stores. As of December 31, 2012, ColorTyme franchised 224 stores in 33 states. These rent-to-own stores primarily offer durable products, such as consumer electronics, appliances, computers, furniture and accessories. All of the ColorTyme franchised stores use ColorTyme’s trade names, service marks, trademarks and logos. Seasonality The company’s revenue mix is moderately seasonal, with the first quarter of each year providing higher merchandise sales than any other quarter during a year, primarily related to federal income tax refunds. Its customers would more frequently exercise the early purchase option on their existing rental purchase agreements or purchase pre-leased merchandise off the showroom floor during the first quarter of each year. Furthermore, the company tends to experience slower growth in the number of rental purchase agreements in the third quarter of each year when compared to other quarters throughout the year. Trademarks The company owns various trademarks and service marks, including Rent-A-Center and RAC Worry-Free Guarantee that are used in connection with its operations and have been registered with the United States Patent and Trademark Office. ColorTyme licenses the use of its trademarks and service marks to its franchisees under the franchise agreement. ColorTyme owns various trademarks and service marks, including ColorTyme, RimTyme, and Your Hometown ColorTyme that are used in connection with its operations and have been registered with the United States Patent and Trademark office. History Rent-A-Center, Inc. was founded in 1986.