BRIEF-Rent-A-Center announces new strategic plan to drive growth
April 10 Rent-a-center Inc
* Announces new strategic plan to drive growth, improve profitability and deliver enhanced stockholder value
* Reestablishing 2x2 matrix cost-based approach as its foundational pricing strategy
* Targets revenue growth in low-single digits in 2018
* Sees EPS target of $1.20 - $1.40 for 2018
* Targets revenue growth in mid-single digits in 2019
* As a result of new plan expects 2018 target free cash flow $70 - $90 million
* Sees EPS target of $2.00 - $2.25 for 2019
* As a result of new plan expects 2019 target free cash flow $110 - $130 million
* J.P. Morgan is rent-a-center's financial advisor and Winston & Strawn is serving as its legal advisor
* Improving early payout options that promote ownership, with expectation return on investment will increase from about 2.7x to 3.0x
* Anticipates initiatives will result in an estimated run-rate EBITDA improvement of approximately $65 million by 2018-2019
* Rent-A-Center-Steps to restore profitability in U.S. Core business is expected to result in estimated run-rate EBITDA improvement of about $40 million by 2018-2019 Source text for Eikon: Further company coverage: