CANFIELD Earnings lower for Rainbow

The company attributes reduced earnings to the costs of opening new stores.
THE VINDICATOR, YOUNGSTOWN
CANFIELD -- Earnings for Rainbow Rentals slipped in the third quarter.
The Canfield-based, rent-to-own chain earned $335,000, or 6 cents a share, compared with $394,000, or 7 cents a share, in the same quarter last year.
If last year's results were figured with accounting changes adopted this year, the company would have earned $469,000 in the third quarter.
The company said earnings fell because of the cost of opening 12 new stores this year, including six that opened in the third quarter. Earnings also were reduced by 2 cents a share because of the costs of closing one store and improving another store that was sold.
Revenue for the third quarter was $24.4 million, which was up 8 percent from $22.7 million in the same quarter last year. Revenue at stores open at least a year was up 4 percent.
Pleased with figure
Wayland Russell, company chairman and chief executive, said he's pleased that this figure has gone up for four straight quarters.
"However, we are not yet where we need to be in terms of revenue per store and customer growth," he said.
Revenue growth has come from increased prices, high-quality inventory and improved collections, he said.
For the first nine months of this year, the company has earned $1.3 million, or 23 cents a share, which is the same as earnings during the same period last year. With the accounting changes adopted this year, earnings last year would have been $1.6 million.
Revenue for the first three quarters this year was $74.2 million, up 5 percent from the same period last year.
Rainbow operates 122 stores in 13 states. Its stock is trading at about $5 a share, after reaching $10 a share earlier this year.