| IPO Company Profile |
| Current Quote | News | SEC Filings | Peer IPO Companies |
| Rainbow Rentals, Inc. |
| 3711 Starr Centre Drive, Canfield, OH 44406 * (330) 533-5363 |
| The company operates 64 rental-purchase stores in eight states. The company offers quality brand name, durable merchandise, including home electronics, furniture, appliances and computers. |
| Manager | Tier | Phone |
| Robinson-Humphrey Company, Inc., The | Lead Manager | (404) 266-6450 |
| Dain Rauscher Incorporated | Co-manager | (612) 371-2818 |
| Suntrust Equitable Securities | Co-manager |
| NASNTL: | RBOW | Service: | SIC 7359 | |
| Type of Shares: | Common Shares | Filing Date: | 3/27/98 | |
| U.S. Shares: | 2,250,000 | Offer Date: | 6/4/98 | |
| Non-U.S. Shares: | 0 | Filing Range: | $10.00 - $12.00 | |
| Primary Shares: | 2,250,000 | Offer Price: | $10.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.70 | |
| Offering Amount: | $24,750,000 | Selling: | $0.40 | |
| Expenses: | $500,000 | Reallowance: | $0.10 | |
| Post-IPO Shares: | 5,925,735 | |||
| Employees: | 365 |
| Issuer's Law Firm: | Kahn Kleinman Yanowitz & Arnson |
| Bank's Law Firm: | Nelson Mullins Riley & Scarbourough |
| Auditor: | KPMG Peat Marwick |
Dollar amounts in U.S. millions except for per share data | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Audited Income | Balance Sheet | ||
| 12/31/97 | 12/31/97 | ||||
| Revenue: | $55.33 | Assets: | $31.24 | ||
| Net Income: | $2.68 | Curr Assets: | $24.66 | ||
| EPS: | $0.59 | Liabilities: | $28.19 | ||
| Prior EPS: | $0.32 | Curr Liab: | $5.06 | ||
| Cash Flow/Oper: | $0.72 | Equity: | $3.05 | ||
| Cash Flow/Fin: | -$0.27 | Cash: | $0.08 | ||
| Cash Flow/Inv: | -$0.85 | Working Cap: | $19.59 | ||
| Competition |
| The rental-purchase industry is extremely competitive. The Company competes with other rental-purchase businesses, as well as rental stores that do not offer their customers a purchase option. Competition is based primarily on rental rates and terms, product selection and availability and customer service. With respect to customers that are able to purchase a product for cash or on credit, the Company also competes with department stores, discount stores and other retail outlets. Several competitors in the rental-purchase business are national or regional in scope. The Company has generally strived to open new stores in markets with a lower concentration of rental-purchase stores. As the Company's competitors expand geographically into the Company's existing markets, the Company's competition in those markets may increase and there will be fewer relatively underserved areas available for penetration by the Company. Many of the Company's competitors have financial and operating resources exceeding those of the Company. |
| Business Plan |
| The Company's operating strategy is to maintain a high AMRR on its agreements, a high number of rental-purchase agreements per store and a high level of customer referrals and repeat business, all accompanied by a low level of delinquencies. The Company seeks to achieve these objectives by applying the following operating techniques: (I) Store Environment, (ii) Quality Merchandise, (iii) Customer Service, (iv) Experienced Associates, (v) Decentralized Management and (vi) Management Information Systems. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to repay indebtedness and for general corporate purposes. |