October 31, 2008
Safe Harbor Statement Safe Harbor Statement This presentation contains This presentation contains forward 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 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," can be identified by the use of forward "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- 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 will prove to have been correct. The actual future performance of the Company could differ materially from such expectations will prove to have been correct. The actual future performance of the Company could differ materially from such statements. Factors that could cause or contribute to such differences include, but are not limited to: uncertainties regarding rences include, but are not limited to: uncertainties regarding the the statements. Factors that could cause or contribute to such diffe 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’ 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 Company's ability to identify and successfully enter new lines of business offering products and services that appeal to its cus Company's ability to identify and successfully enter new lines o f business offering products and services that appeal to its customer tomer demographic, including its financial services products; the Company's ability to enhance the performance of acquired stores; the any's ability to enhance the performance of acquired stores; the demographic, including its financial services products; the Comp 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 customer demographic; the Company's ability to enter into new an d collect on its rental purchase agreements; the Company's ability ty to enter into new and collect on its short term loans; the passage of legislation adversely affecting the rent to enter into new and collect on its short term loans; the passa ge of legislation adversely affecting the rent- -to to- -own or financial own or financial services industries; our failure to comply with statutes or regulations governing the rent lations governing the rent- -to to- -own or financial services industries; own or financial services industries; services industries; our failure to comply with statutes or regu interest rates; economic pressures, such as high fuel and utility costs, affecting the disposable income available to the Compan interest rates; economic pressures, such as high fuel and utilit y costs, affecting the disposable income available to the Company's y's targeted consumers; changes in the Company's stock price and the number of shares of common stock that it may or may not targeted consumers; changes in the Company's stock price and the number of shares of common stock that it may or may not repurchase; changes in estimates relating to self- 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 the anges in the Company's effective tax rate; the Company's ability to maintain an effective system of internal controls; changes in the number an effective system of internal controls; changes in the number of of Company's effective tax rate; the Company's ability to maintain 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; and the other risks detailed from time to time in and the other risks detailed from time to time in the Company’ ’s SEC reports, including but not limited to, its annual report s SEC reports, including but not limited to, its annual report on Form 10 on Form 10- -K for the year ended December 31, 2007, and K for the year ended December 31, 2007, and the Company its quarterly reports for the quarters ended March 31, 2008, June 30, 2008, and September 30, 2008. You are cautioned not to pla e 30, 2008, and September 30, 2008. You are cautioned not to place ce its quarterly reports for the quarters ended March 31, 2008, Jun undue reliance on these forward- undue reliance on these forward -looking statements, which speak only as of the date of this pres looking statements, which speak only as of the date of this press release. Except as required by law, s release. Except as required by law, the Company is not obligated to publicly release any revisions to these forward the Company is not obligated to publicly release any revisions t o these forward- -looking statements to reflect the events or looking statements to reflect the events or circumstances after the date of this press release or to reflect circumstances after the date of this press release or to reflect the occurrence of unanticipated events. the occurrence of unanticipated 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 $363.0 million in LTM � Generated $2.9 billion in LTM revenue and $363.0 million in LTM adjusted EBITDA as of September 30, 2008 adjusted EBITDA as of September 30, 2008 3 3
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