CANFIELD Rainbow's earnings are lower
The Canfield-based company earned $418,000, down about $1 million for the same quarter last year.
CANFIELD -- Rainbow Rentals reported lower earnings for its second quarter and said earnings are expected to be off last year's pace for the rest of the year.
The Canfield-based rent-to-own chain earned $418,000, or seven cents a share, in the quarter ending June 30, compared with earnings of $1.4 million, or 23 cents a share, in the same quarter last year.
The company said earnings fell because of lower store revenues, higher advertising spending and an accounting charge of two cents a share related to a store sale.
Revenue for last quarter was $23.6 million, up 5 percent over the same quarter last year. Revenue at stores open at least a year declined about 4 percent.
Wayland Russell, company chairman and chief executive, said the second and third quarters normally have declines in the number of units on rent so the company has worked to reduce store costs.
Expectation: Rainbow said it expects third-quarter earnings to be between seven and nine cents a share, compared with 10 cents in the same quarter last year. Fourth-quarter earnings are expected to be between nine and 12 cents a share, compared with 14 cents in the fourth quarter of last year.
Russell said the company is committed to its plan to improve its financial results. He said Rainbow has consolidated the business of two stores in Connecticut and Virginia into nearby stores, strengthened its regional management team, improved store staffing and increased advertising spending.
"Our management team is committed to completing and carrying out these programs, and we are confident they will lead to better results and greater shareholder value," he said.