10-Q 1 rcii-20220930.htm 10-Q rcii-20220930
RENT A CENTER INC 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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
Form 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2022
or 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from        to
Commission File Number: 001-38047
Rent-A-Center, Inc.
(Exact name of registrant as specified in its charter)
Delaware45-0491516
(State or other jurisdiction of(I.R.S. Employer
incorporation or organization)Identification No.)
5501 Headquarters Drive
Plano, Texas 75024
(Address, including zip code of registrant’s principal executive offices)
Registrant’s telephone number, including area code: 972-801-1100
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common stock, $.01 par valueRCIIThe Nasdaq Stock Market
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes  No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging Growth Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes  No
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of October 26, 2022:
ClassOutstanding
Common stock, $.01 par value55,670,048




TABLE OF CONTENTS
 
  Page No.
Condensed Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021
 


i


Item 1. Condensed Consolidated Financial Statements.
RENT-A-CENTER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
 Three Months Ended September 30,Nine Months Ended September 30,
 2022202120222021
(in thousands, except per share data)
Revenues
Store
Rentals and fees$829,459 $930,849 $2,569,804 $2,592,788 
Merchandise sales147,616 192,016 541,265 646,038 
Installment sales16,718 17,028 52,355 52,992 
Other1,340 1,082 3,698 3,035 
Total store revenues995,133 1,140,975 3,167,122 3,294,853 
Franchise
Merchandise sales22,823 33,671 67,849 96,342 
Royalty income and fees6,001 6,622 19,962 20,830 
Total revenues1,023,957 1,181,268 3,254,933 3,412,025 
Cost of revenues
Store
Cost of rentals and fees310,079 344,623 968,655 912,531 
Cost of merchandise sold179,477 228,024 615,543 717,983 
Cost of installment sales6,032 6,291 18,379 18,566 
Total cost of store revenues495,588 578,938 1,602,577 1,649,080 
Franchise cost of merchandise sold22,834 33,570 68,183 96,190 
Total cost of revenues518,422 612,508 1,670,760 1,745,270 
Gross profit505,535 568,760 1,584,173 1,666,755 
Operating expenses
Store expenses
Labor156,192 163,945 486,751 479,989 
Other store expenses197,847 189,553 624,306 540,698 
General and administrative expenses40,002 45,958 141,273 149,468 
Depreciation and amortization12,798 13,835 40,208 40,794 
Other charges61,619 88,323 185,435 212,095 
Total operating expenses468,458 501,614 1,477,973 1,423,044 
Operating profit37,077 67,146 106,200 243,711 
Debt refinancing charges 6,839  15,582 
Interest expense22,960 19,742 61,018 52,167 
Interest income(216)(30)(353)(148)
Earnings before income taxes14,333 40,595 45,535 176,110 
Income tax expense20,111 19,328 35,825 50,982 
Net (loss) earnings$(5,778)$21,267 $9,710 $125,128 
Basic (loss) earnings per common share$(0.10)$0.36 $0.18 $2.17 
Diluted (loss) earnings per common share$(0.10)$0.31 $0.16 $1.85 
Cash dividends declared per common share$0.34 $0.31 $1.02 $0.93 
See accompanying notes to condensed consolidated financial statements.

1


RENT-A-CENTER, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
(Unaudited)
 
 Three Months Ended September 30,Nine Months Ended September 30,
 2022202120222021
(in thousands)
Net (loss) earnings$(5,778)$21,267 $9,710 $125,128 
Other comprehensive (loss) income:
Foreign currency translation adjustments, net of tax of $(163) and $(251), $(14) and $(240) for the three and nine months ended September 30, 2022 and 2021, respectively
(615)(944)(51)(901)
Total other comprehensive (loss) income(615)(944)(51)(901)
Comprehensive (loss) income$(6,393)$20,323 $9,659 $124,227 
See accompanying notes to condensed consolidated financial statements.

2


RENT-A-CENTER, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
September 30, 2022December 31, 2021
(in thousands, except share and par value data)
ASSETS
Cash and cash equivalents$165,627 $108,333 
Receivables, net of allowance for doubtful accounts of $12,378 and $8,479 in 2022 and 2021, respectively
113,230 126,378 
Prepaid expenses and other assets71,276 63,468 
Rental merchandise, net
On rent943,878 1,173,024 
Held for rent128,708 132,984 
Merchandise held for installment sale6,942 6,405 
Property assets, net of accumulated depreciation of $597,128 and $557,453 in 2022 and 2021, respectively
300,135 308,098 
Operating lease right-of-use assets306,948 291,338 
Deferred tax asset68,205 68,391 
Goodwill289,750 289,750 
Other intangible assets, net373,897 425,158 
Total assets$2,768,596 $2,993,327 
LIABILITIES
Accounts payable – trade$139,751 $135,666 
Accrued liabilities308,390 362,708 
Operating lease liabilities310,099 296,535 
Deferred tax liability92,759 113,943 
Senior debt, net931,973 1,135,207 
Senior notes, net437,461 435,992 
Total liabilities2,220,433 2,480,051 
STOCKHOLDERS’ EQUITY
Common stock, $0.01 par value; 250,000,000 shares authorized; 125,019,025 and 124,398,373 shares issued in September 30, 2022 and December 31, 2021, respectively
1,103 1,065 
Additional paid-in capital1,261,323 1,146,509 
Retained earnings1,093,517 1,143,647 
Treasury stock at cost, 67,036,165 and 65,790,667 shares in September 30, 2022 and December 31, 2021, respectively
(1,795,358)(1,765,574)
Accumulated other comprehensive loss(12,422)(12,371)
Total stockholders' equity548,163 513,276 
Total liabilities and stockholders' equity$2,768,596 $2,993,327 
See accompanying notes to condensed consolidated financial statements.

3


RENT-A-CENTER, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
 Common StockAdditional
Paid-In
Capital
Retained
Earnings
Treasury
Stock
Accumulated Other Comprehensive (Loss) IncomeTotal
SharesAmount
(in thousands)
Balance at December 31, 2021124,398 $1,065 $1,146,509 $1,143,647 $(1,765,574)$(12,371)$513,276 
Net loss— — — (4,237)— — (4,237)
Other comprehensive income— — — — — 661 661 
Exercise of stock options22 1 476 — — — 477 
Vesting of restricted share units, net of shares withheld for employee taxes424 4 (4)— — —  
Tax effect of stock awards vested and options exercised— — (8,466)— — — (8,466)
Stock-based compensation— — 41,410 — — — 41,410 
Dividends declared— — — (20,063)— — (20,063)
Balance at March 31, 2022124,844 1,070 1,179,925 1,119,347 (1,765,574)(11,710)523,058 
Net earnings— — — 19,725 — — 19,725 
Other comprehensive loss— — — — — (97)(97)
Exercise of stock options52  783 — — — 783 
Vesting of restricted share units, net of shares withheld for employee taxes85 1 (1)— — —  
Tax effect of stock awards vested and options exercised— — (969)— — — (969)
Stock-based compensation— — 36,438 — — — 36,438 
Dividends declared— — — (20,104)— — (20,104)
Balance at June 30, 2022124,981 1,071 1,216,176 1,118,968 (1,765,574)(11,807)558,834 
 Net loss — — — (5,778)— — (5,778)
 Other comprehensive loss— — — — — (615)(615)
 Purchase of treasury stock — (13)— — (29,784)— (29,797)
 Exercise of stock options 33  461 — — — 461 
Vesting of restricted share units, net of shares withheld for employee taxes5 45 (45)— — —  
Tax effect of stock awards vested and options exercised— — (42)— — — (42)
 Stock-based compensation— — 44,773 — — — 44,773 
 Dividends declared — — — (19,673)— — (19,673)
Balance at September 30, 2022125,019 $1,103 $1,261,323 $1,093,517 $(1,795,358)$(12,422)$548,163 

4


RENT-A-CENTER, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - (Continued)
(Unaudited)
 Common StockAdditional
Paid-In
Capital
Retained
Earnings
Treasury
Stock
Accumulated Other Comprehensive (Loss) IncomeTotal
SharesAmount
(in thousands)
Balance at December 31, 2020112,181 $1,105 $886,902 $1,091,010 $(1,375,541)$(11,396)$592,080 
Net earnings— — — 42,552 — — 42,552 
Other comprehensive loss— — — — — (853)(853)
Exercise of stock options330 3 8,941 — — — 8,944 
Vesting of restricted share units, net of shares withheld for employee taxes(1)
902 7 (20,910)— — — (20,903)
Stock-based compensation— — 20,148 — — — 20,148 
Dividends declared— — — (20,722)— — (20,722)
Acima acquisition10,780 27 120,914 — — — 120,941 
Balance at March 31, 2021124,193 1,142 1,015,995 1,112,840 (1,375,541)(12,249)742,187 
Net earnings— — — 61,309 — — 61,309 
Other comprehensive income— — — — — 896 896 
Exercise of stock options96 1 1,681 — — — 1,682 
Vesting of restricted share units, net of shares withheld for employee taxes58 1  — — — 1 
Stock-based compensation— — 39,566 — — — 39,566 
Dividends declared— — — (20,477)— — (20,477)
Balance at June 30, 2021124,347 1,144 1,057,242 1,153,672 (1,375,541)(11,353)825,164 
 Net earnings — — — 21,267 — — 21,267 
 Other comprehensive loss— — — — — (944)(944)
 Purchase of treasury stock — (4)— — (20,035)— (20,039)
 Exercise of stock options 29 1 741 — — — 742 
 Stock-based compensation— — 48,442 — — — 48,442 
 Dividends declared — — — (20,553)— — (20,553)
Balance at September 30, 2021124,376 $1,141 $1,106,425 $1,154,386 $(1,395,576)$(12,297)$854,079 
(1)Includes shares released from escrow related to the 2019 Merchant's Preferred acquisition.
See accompanying notes to condensed consolidated financial statements.

5


RENT-A-CENTER, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
 Nine Months Ended September 30,
 20222021
(in thousands)
Cash flows from operating activities
Net earnings$9,710 $125,128 
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation of rental merchandise937,728 880,341 
Bad debt expense18,100 9,825 
Stock-based compensation expense122,621 108,156 
Depreciation of property assets51,384 49,335 
Loss on sale or disposal of property assets5,979 318 
Amortization of intangibles51,382 73,228 
Amortization of financing fees4,798 4,178 
Write-off of debt financing fees 9,926 
Deferred income taxes(21,025)32,752 
Changes in operating assets and liabilities, net of acquired assets
Rental merchandise(704,191)(900,921)
Receivables(4,951)(21,286)
Prepaid expenses and other assets(7,808)(721)
Operating lease right-of-use assets and lease liabilities(2,047)(339)
Accounts payable – trade4,085 (51,853)
Accrued liabilities(53,682)8,137 
Net cash provided by operating activities412,083 326,204 
Cash flows from investing activities
Purchase of property assets(49,436)(45,876)
Proceeds from sale of property assets35 3 
Acquisitions of businesses(775)(1,273,542)
Net cash used in investing activities(50,176)(1,319,415)
Cash flows from financing activities
Share repurchases(29,797)(20,035)
Exercise of stock options1,720 11,368 
Shares withheld for payment of employee tax withholdings(9,477)(20,903)
Debt issuance costs (47,622)
Proceeds from debt90,000 1,490,000 
Repayments of debt(296,563)(366,875)
Dividends paid(60,410)(53,182)
Net cash (used in) provided by financing activities(304,527)992,751 
Effect of exchange rate changes on cash(86)(159)
Net increase (decrease) in cash and cash equivalents57,294 (619)
Cash and cash equivalents at beginning of period108,333 159,449 
Cash and cash equivalents at end of period$165,627 $158,830 
See accompanying notes to condensed consolidated financial statements.

6

RENT-A-CENTER, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Note 1 - Basis of Presentation
The interim condensed consolidated financial statements of Rent-A-Center, Inc. included herein have been prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to the SEC’s rules and regulations, although we believe the disclosures are adequate to make the information presented not misleading. We suggest these financial statements be read in conjunction with the financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2021. In our opinion, the accompanying unaudited interim financial statements contain all adjustments, consisting only of those of a normal recurring nature, necessary to present fairly our results of operations and cash flows for the periods presented. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year.
Use of Estimates
In preparing financial statements in conformity with U.S. generally accepted accounting principles, we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent losses and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. In applying accounting principles, we must often make individual estimates and assumptions regarding expected outcomes or uncertainties. Our estimates, judgments and assumptions are continually evaluated based on available information and experience. However, uncertainties, such as the future unknown impacts of the COVID-19 pandemic and other macroeconomic factors, including recent significant increases to the consumer price index, a condensed labor market, wage inflation, and global supply chain issues may affect certain estimates and assumptions inherent in the financial reporting process, which may impact reported amounts of assets and liabilities in future periods and cause actual results to differ from those estimates.
Principles of Consolidation and Nature of Operations
The financial statements included herein include the accounts of Rent-A-Center, Inc. and its direct and indirect subsidiaries. All intercompany accounts and transactions have been eliminated. Unless the context indicates otherwise, references to “Rent-A-Center” refer only to Rent-A-Center, Inc., the parent, and references to the “Company”, “we,” “us” and “our” refer to the consolidated business operations of Rent-A-Center and any or all of its direct and indirect subsidiaries. We report four operating segments: Rent-A-Center Business, Acima (formerly Preferred Lease), Mexico, and Franchising.
Our Rent-A-Center Business segment consists of company-owned lease-to-own stores in the United States and Puerto Rico that lease household durable goods to customers on a lease-to-own basis. We also offer merchandise on an installment sales basis in certain of our stores under the names “Get It Now” and “Home Choice.” Our Rent-A-Center Business segment operates through our company-owned stores and e-commerce platform through rentacenter.com.
Our Acima segment, which operates in the United States and Puerto Rico, which includes the operations of Acima Holdings (as defined in Note 2 below) acquired in February 2021 and our previous Preferred Lease virtual and staffed locations, generally offers the lease-to-own transaction to consumers who do not qualify for financing from the traditional retailer through staffed or unstaffed kiosks located within such retailer’s locations, or other virtual options. Virtual locations employ a virtual solution where customers, either directly or with the assistance of a representative of the third-party retailer, initiate the lease-to-own transaction online in the retailers’ locations using our virtual solutions.
Our Mexico segment consists of our company-owned lease-to-own stores in Mexico that lease household durable goods to customers on a lease-to-own basis.
Rent-A-Center Franchising International, Inc., an indirect wholly-owned subsidiary of Rent-A-Center, is a franchisor of lease-to-own stores. Our Franchising segment’s primary source of revenue is the sale of rental merchandise to its franchisees, who in turn offer the merchandise to the general public for rent or purchase under a lease-to-own transaction. The balance of our Franchising segment’s revenue is generated primarily from royalties based on franchisees’ monthly gross revenues.
Note 2 - Acquisitions and Divestitures
On February 17, 2021, we completed the acquisition of Acima Holdings, LLC (“Acima Holdings”). Acima Holdings is a leading platform offering customers virtual lease-to-own solutions at the point-of-sale via web and mobile technology.
In accordance with the agreement and plan of merger entered into in connection with the transaction (the “Merger Agreement”), we issued to the former owners of Acima Holdings an aggregate of 10,779,923 shares of our common stock (the “Aggregate Stock Consideration”) and paid to them aggregate cash consideration of $1.3 billion (the “Aggregate Cash Consideration”). In

7

RENT-A-CENTER, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(Unaudited)
accordance with the terms of the Merger Agreement, the portion of the Aggregate Stock Consideration issued to employee former owners of Acima Holdings is subject to restricted stock agreements providing vesting conditions over a 36-month period that began upon closing of the transaction. The portion of the Aggregate Stock Consideration issued to nonemployee former owners of Acima Holdings were previously subject to the terms of an 18-month lockup agreement, which expired on August 17, 2022. Following the expiration of the lock-up agreement, all shares of our common stock received by non-employee former owners in the transaction have now become transferable. We entered into a Registration Rights Agreement at the closing of the transaction pursuant to which certain former owners of Acima are entitled to registration rights in respect of the portion of the Aggregate Stock Consideration received by them in the transaction.
The aggregate purchase price in accordance with accounting standards under U.S. GAAP was approximately $1.4 billion, including the Aggregate Cash Consideration, and the 2,683,328 shares of the Aggregate Stock Consideration issued to non-employee former owners of Acima Holdings, valued at $51.14 per share, as of the closing date and discounted for lack of marketability on account of the transfer restrictions described above. The Aggregate Cash Consideration for the acquisition was financed with a combination of cash on hand, borrowings under our ABL Credit Facility and proceeds from issuances under our Term Loan Facility, as defined in Note 7, in addition to proceeds from the issuance of new unsecured senior notes. See Note 7 and Note 8 for additional information.
The aggregate purchase price excludes the remaining 8,096,595 shares of the Aggregate Stock Consideration issued to employee former owners of Acima Holdings. Such shares were valued at $414.1 million, based on the per share price of $51.14 as of the date of closing. These shares are instead being recognized as stock-based compensation expense subject to ASC Topic 718, “Stock-based Compensation”, over the required vesting period, and recorded to Other charges in our unaudited Condensed Consolidated Statements of Operations.
Assets acquired and liabilities assumed in connection with the acquisition have been recorded at their fair values. The following table provides the estimated fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date:
(in thousands)February 17, 2021
Aggregate cash consideration$1,273,263 
Aggregate stock consideration, subject to lockup agreements120,929 
Total Purchase price$1,394,192 
ASSETS ACQUIRED
Receivables, net(1)
$25,255 
Prepaid expenses and other assets700 
Rental merchandise
On rent340,575 
Property assets171,455 
Operating lease right-of-use assets9,136 
Deferred income taxes28,559 
Goodwill219,530 
Other intangible assets520,000 
Total assets acquired$1,315,210 
LIABILITIES ASSUMED
Accounts payable - trade16,023 
Accrued liabilities11,716 
Operating lease liabilities9,689 
Deferred income taxes(116,410)
Total liabilities assumed(78,982)
Total equity value$1,394,192 
(1) Includes gross contractual receivables of $61.6 million related to merchandise lease contracts, of which $34.7 million were estimated to be uncollectible.
Carrying value for assets and liabilities assumed as part of the acquisition, including receivables, prepaid expenses and other assets, accounts payable and accrued liabilities were recorded as fair value, as of the date of acquisition, due to the short term nature of these balances. Operating lease right-of-use assets and liabilities were recorded as the discounted value of future obligations in accordance with ASC Topic 842, “Leases”. The fair value measurements for acquired intangible assets and

8

RENT-A-CENTER, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(Unaudited)
developed technology were primarily based on significant unobservable inputs (Level 3) developed using company-specific information. Certain fair values were determined based on an independent valuation of the net assets acquired, including $340.6 million of rental merchandise and $520 million of identifiable intangible assets with an estimated weighted average useful life of 8 years, as follows:
Asset ClassEstimated Fair Value
(in thousands)
Estimated Remaining Useful Life (in years)
Merchant relationships$380,000 10
Relationship with existing lessees60,000 1
Trade name40,000 7
Non-compete agreements40,000 3
Developed technology, included in Property assets, net, in line with our accounting policies, was also acquired with a value of $170.0 million and an estimated remaining useful life of 10 years. The fair value for these intangible and property assets were estimated using common industry valuation methods for similar asset types, based primarily on cost inputs and projected cash flows.
In addition, we recorded goodwill of $219.5 million in our Acima operating segment, which consists of the excess of the net purchase price over the fair value of the net assets acquired. Goodwill represents expected cost and revenue synergies and other benefits expected to result within our retail partner business from the acquisition of Acima Holdings. The total value of goodwill for tax purposes differs from recorded goodwill as a result of the Aggregate Stock Consideration subject to restricted stock agreements, differences in value assigned to other purchased assets, and acquisition-related expenses. Tax goodwill will be amortized over 15 years.
Acima Holdings' results of operations are reflected in our unaudited Condensed Consolidated Statements of Operations from the date of acquisition.
Subsequent to the date of acquisition, we recorded certain adjustments to the purchase price allocation within the measurement period, including an adjustment to the fair value of rental merchandise decreasing the value of the acquired assets by approximately $17.1 million. The adjustment to the fair value of rental merchandise was based on further assessment of the carrying value of the assets and corresponding evaluation of related (Level 2) market inputs. Total cumulative measurement period adjustments resulted in a decrease to goodwill of approximately $(22.2) million. The purchase price allocation for the Acima Holdings acquisition was complete as of December 31, 2021.
In connection with this acquisition, we incurred approximately $23.9 million in acquisition-related expenses including expenses related to legal, professional, and banking transaction fees, which are treated as an addition to goodwill for tax purposes. These costs were included in Other charges in our unaudited Condensed Consolidated Statements of Operations.
The following unaudited pro forma combined results of operations present our financial results as if the acquisition of Acima had been completed on January 1, 2020. These unaudited pro forma results may not necessarily reflect the actual results of operations that would have been achieved, nor are they necessarily indicative of future results of operations. The unaudited pro forma information reflects the step-up and step-down depreciation and amortization adjustments for the fair value of the assets acquired, adjustments to stock compensation expense as a result of Aggregate Stock Consideration subject to restricted stock awards, the adjustments in interest expense due to the elimination of historical debt and placement of the new debt, and the related adjustments to the income tax provision. In addition, the pro forma net income has been adjusted to include transaction expenses and other non-recurring costs as of January 1, 2020. The unaudited pro forma financial information is as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2021202020212020
(unaudited)(unaudited)(unaudited)(unaudited)
Pro Forma total revenues$1,181,268 $1,042,799 $3,606,629 $3,011,812 
Pro Forma net earnings(1)
36,320 32,004 158,181 31,160 
(1)Total pro forma adjustments to net earnings represented increases of $15.0 million and $5.9 million for the three and nine months ended September 30, 2021, and decreases of $98.9 million and $276.9 million for the three and nine months ended September 30, 2020, respectively.

9

RENT-A-CENTER, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(Unaudited)
The amounts of revenue and earnings of Acima Holdings included in our Condensed Consolidated Statements of Operations from the acquisition date of February 17, 2021 are as follows:
(in thousands)
February 17, 2021 -
September 30, 2021
(unaudited)
Total revenues$1,042,966 
Net earnings(1)
102,063 
(1)Net earnings for the period includes amortization of intangible assets acquired upon closing of the Acima Holdings acquisition.
Note 3 - Revenues
The following table disaggregates our revenue for the periods ended September 30, 2022 and 2021:
 Three Months Ended September 30, 2022
 
Rent-A-Center Business
Acima(1)
MexicoFranchisingConsolidated
(in thousands)
Store
Rentals and fees$426,805 $387,488 $15,166 $ $829,459 
Merchandise sales30,009 116,795 812  147,616 
Installment sales16,718    16,718 
Other223 165 63 889 1,340 
Total store revenues473,755 504,448 16,041 889 995,133 
Franchise
Merchandise sales   22,823 22,823 
Royalty income and fees   6,001 6,001 
Total revenues$473,755 $504,448 $16,041 $29,713 $1,023,957 
(1) Represents revenues for our Acima segment, as defined in Note 1.
 Nine Months Ended September 30, 2022
 
Rent-A-Center Business
Acima(1)
MexicoFranchisingConsolidated
(in thousands)
Store
Rentals and fees$1,305,871 $1,218,143 $45,790 $ $2,569,804 
Merchandise sales123,255 415,465 2,545  541,265 
Installment sales52,355    52,355 
Other964 386 119 2,229 3,698 
Total store revenues1,482,445 1,633,994 48,454 2,229 3,167,122 
Franchise
Merchandise sales   67,849 67,849 
Royalty income and fees   19,962 19,962 
Total revenues$1,482,445 $1,633,994 $48,454 $90,040 $3,254,933 
(1) Represents revenues for our Acima segment, as defined in Note 1.


10

RENT-A-CENTER, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(Unaudited)
 
Three Months Ended September 30, 2021
 
Rent-A-Center Business
Acima(1)
MexicoFranchisingConsolidated
(In thousands)
Store
Rentals and fees$446,049 $469,692 $15,108 $ $930,849 
Merchandise sales37,515 153,725 776  192,016 
Installment sales17,028    17,028 
Other394 28 33 627 1,082 
Total store revenues500,986 623,445 15,917 627 1,140,975 
Franchise
Merchandise sales   33,671 33,671 
Royalty income and fees   6,622 6,622 
Total revenues$500,986 $623,445 $15,917 $40,920 $1,181,268 
(1) Represents revenues for our Acima segment, as defined in Note 1.
 
Nine Months Ended September 30, 2021
 
Rent-A-Center Business
Acima(1)
MexicoFranchisingConsolidated
(In thousands)
Store
Rentals and fees$1,313,512 $