| Ticker: RNCO | 1736 East Main Street | |
| Exchange: NASDAQ-National Market | New Albany, Indiana 47150 | |
| Industry: Retail | (812) 949-3370 |
| Type of Shares: | Common Shares | Filing Date: | 11/16/95 | |
| U.S. Shares: | 1,800,000 | Offer Date: | 1/23/96 | |
| Non-U.S. Shares: | 0 | Filing Range: | $13.00 - $15.00 | |
| Primary Shares: | 1,100,000 | Offer Price: | $14.00 | |
| Secondary Shares: | 700,000 | Gross Spread: | $0.98 | |
| Offering Amount: | $25,200,000 | Selling: | $0.58 | |
| Expenses: | $600,000 | Reallowance: | $0.10 | |
| Shares Out After: | 4,205,000 |
| Manager | Tier | Phone |
| Equitable Securities Corporation | Lead Manager | (615) 780-9300 |
| J.J.B. Hilliard, W.L. Lyons, Inc. | Co-manager | (502) 588-8814 |
| Wheat First Butcher & Singer Capital Markets | Co-manager | (804) 782-3278 |
| Auditor: Grant Thornton | |||||
| Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/94 | 9/30/95 | 9/30/94 | 9/30/95 | ||
| Revenue: | $27.80 | $26.30 | $19.31 | Assets: | $19.62 |
| Net Income: | $0.96 | $0.77 | $0.73 | Liabilities: | $15.58 |
| EPS: | $0.31 | $0.25 | $0.23 | Equity: | $4.04 |
Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year, unaudited figures are partial year | |||||
| Business Description |
| The Company is a growing operator of rental-purchase stores that currently has 69 stores in 12 states primarily in the midwestern and southern United States. The Company offers high quality, brand-name consumer merchandise under flexible rental-purchase agreements, also known as rent-to-own agreements. The Company extends renewable week-to-week or month-to-month rental-purchase agreements that can be cancelled at any time. The Company's target customers are typically low to middle income consumers with limited or no access to traditional credit sources such as bank financing, installment credit and credit cards. The Company also provides its products to consumers who desire only temporary rental of a product. The Company's average store contains approximately 3,800 square feet and is stocked with consumer electronics, appliances, furniture, jewelry and home furnishings accessories in retail show-room displays. |
| Use of Proceeds |
| Approximately $11.5 million of such net proceeds will be used to repay all outstanding borrowings under the Company's bank loan agreement. The company plans to use it available borrowing capacity under the Loan Agreement and the remaining approximately $2.2 million of the net proceeds of this offering to fund additional store acquisitions. To the extent not used for acquisitions and new store openings, the remaining net proceeds from this offering will be used by the company for working capital and general corporate purposes. |
©1996 IPO Data Systems, Inc. - All rights reserved.