CANFIELD Rental chain reports profits have gone up
The company has resumed its aggressive growth strategy, with plans to open 12 stores this year.
CANFIELD -- Rainbow Rentals earned profits of $476,000 in its second quarter, or 8 cents per share, compared with profits of $418,000, or 7 cents per share in the same quarter a year ago.
The Canfield-based rent-to-own chain said it had revenue of $24.8 million in its quarter ending June 30, up 5.3 percent from $23.6 million a year earlier. Revenue at its established stores, those opened or acquired before April 1, 2001, was up 3.1 percent, marking the third consecutive quarter of comparable store revenue increases.
Wayland J. Russell, chairman and chief executive, said the company's improving results will allow it to resume aggressive plans for new store growth.
Rainbow Rentals has opened seven new stores this year and expects to add five more by the end of the third quarter, he said. That compares to six new stores in 2001.
For the six months ended June 30, the company earned $1 million, or 17 cents per share, compared with $949,000, or 16 cents per share in the same period a year ago.
Revenue for the six months was $49.8 million, up 4 percent from 2001 levels. Rainbow has stores in 13 states and employs more than 800 associates.