July 29, 2008
Safe Harbor Statement Safe Harbor Statement This presentation contains forward- -looking statements that involve risks and uncertainties. Such fo looking statements that involve risks and uncertainties. Such forward rward- -looking statements generally looking statements generally This presentation contains forward can be identified by the use of forward- can be identified by the use of forward -looking terminology such as "may," "will," "expect," "intend," " looking terminology such as "may," "will," "expect," "intend," "could," "estimate," "should," could," "estimate," "should," "anticipate," or "believe," or the negative thereof or variation "anticipate," or "believe," or the negative thereof or variations thereon or similar terminology. Although the Company believes s thereon or similar terminology. Although the Company believes that the that the expectations reflected in such forward- -looking statements will prove to be correct, the Company can giv looking statements will prove to be correct, the Company can give no assurance that such e no assurance that such expectations reflected in such forward expectations will prove to have been correct. The actual future performance of the Company could differ materially from such performance of the Company could differ materially from such expectations will prove to have been correct. The actual future statements. Factors that could cause or contribute to such differences include, but are not limited to: uncertainties regarding statements. Factors that could cause or contribute to such diffe rences include, but are not limited to: uncertainties regarding the the ability to open new rent- ability to open new rent -to to- -own stores; the Company's ability to acquire additional rent own stores; the Company's ability to acquire additional rent- -to to- -own stores or customer accounts on own stores or customer accounts on favorable terms; the Company’ ’s ability to successfully add financial services locations withi s ability to successfully add financial services locations within its existing rent n its existing rent- -to to- -own stores; the own stores; the favorable terms; the Company Company's ability to identify and successfully enter new lines of business offering products and services that appeal to its cus f business offering products and services that appeal to its customer tomer Company's ability to identify and successfully enter new lines o demographic, including its financial services products; the Company's ability to enhance the performance of acquired stores; the demographic, including its financial services products; the Comp any's ability to enhance the performance of acquired stores; the Company's ability to control costs; the Company's ability to identify and successfully market products and services that appeal Company's ability to control costs; the Company's ability to ide ntify and successfully market products and services that appeal to its to its customer demographic; the Company's ability to enter into new and collect on its rental purchase agreements; the Company's abili d collect on its rental purchase agreements; the Company's ability ty customer demographic; the Company's ability to enter into new an to enter into new and collect on its short term loans; the passage of legislation adversely affecting the rent ge of legislation adversely affecting the rent- -to to- -own or financial own or financial to enter into new and collect on its short term loans; the passa services industries; interest rates; economic pressures, such as high fuel and utility costs, affecting the disposable income av services industries; interest rates; economic pressures, such as high fuel and utility costs, affecting the disposable income available ailable to the Company's targeted consumers; changes in the Company's stock price and the number of shares of common stock that it may to the Company's targeted consumers; changes in the Company's st ock price and the number of shares of common stock that it may or may not repurchase; changes in estimates relating to self- -insurance liabilities and income tax and litigation reserves; ch insurance liabilities and income tax and litigation reserves; changes in anges in or may not repurchase; changes in estimates relating to self the Company's effective tax rate; the Company's ability to maintain an effective system of internal controls; changes in the num ain an effective system of internal controls; changes in the number of ber of the Company's effective tax rate; the Company's ability to maint share- share -based compensation grants, methods used to value future share based compensation grants, methods used to value future share- -based payments and changes in estimated forfeiture rates based payments and changes in estimated forfeiture rates with respect to share- with respect to share -based compensation; the resolution of the Company's litigation; based compensation; the resolution of the Company's litigation; the court hearing the Shafer/Johnson matter the court hearing the Shafer/Johnson matter could refuse to approve the settlement or could require changes to the settlement that are unacceptable to the Company or the to the settlement that are unacceptable to the Company or the could refuse to approve the settlement or could require changes plaintiffs; and the other risks detailed from time to time in the Company e Company’ ’s SEC reports, including but not limited to, its annual report s SEC reports, including but not limited to, its annual report plaintiffs; and the other risks detailed from time to time in th on Form 10- on Form 10 -K for the year ended December 31, 2007, and its quarterly report K for the year ended December 31, 2007, and its quarterly report for the quarters ended March 31, 2008 and June 30, for the quarters ended March 31, 2008 and June 30, 2008. You are cautioned not to place undue reliance on these forward 2008. You are cautioned not to place undue reliance on these fo rward- -looking statements, which speak only as of the date of this looking statements, which speak only as of the date of this press release. Except as required by law, the Company is not obligated to publicly release any revisions to these forward igated to publicly release any revisions to these forward- -looking looking press release. Except as required by law, the Company is not obl statements to reflect the events or circumstances after the date of this press release or to reflect the occurrence of unanticip of this press release or to reflect the occurrence of unanticipated ated statements to reflect the events or circumstances after the date events. events. 1 1
Key Investment Rationale Key Investment Rationale � Leading rent-to-own operator in the U.S. � Leading rent-to-own operator in the U.S. � Proven business model � Proven business model � Experienced management team � Experienced management team � Financially solid � Financially solid � Strong cash flow generation � Strong cash flow generation � Sound balance sheet and strong credit statistics � Sound balance sheet and strong credit statistics � Continue execution in our core rent-to-own business � Continue execution in our core rent-to-own business � Growth opportunity adding financial services within our � Growth opportunity adding financial services within our existing store locations existing store locations 2 2
Leading RTO Operator in U.S. Leading RTO Operator in U.S. � Largest rent-to-own operator in the U.S. � Largest rent-to-own operator in the U.S. � 40% market share based on store count � 40% market share based on store count � National footprint of over 3,000 company owned stores and over � National footprint of over 3,000 company owned stores and over 225 franchised stores 225 franchised stores � Broad selection of high quality, brand-name merchandise under � Broad selection of high quality, brand-name merchandise under flexible rental purchase agreements flexible rental purchase agreements � Primarily serves the “underbanked” consumer � Primarily serves the “underbanked” consumer � Generated $2.9 billion in LTM revenue and $361.2 million in LTM � Generated $2.9 billion in LTM revenue and $361.2 million in LTM adjusted EBITDA as of June 30, 2008 adjusted EBITDA as of June 30, 2008 3 3
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