<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
[X] FOR ANNUAL REPORTS OF EMPLOYEE STOCK PURCHASE, SAVINGS
AND SIMILAR PLANS PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES ACT OF 1934
For the fiscal year ended December 31, 1997
[ ]2 TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transaction period from ____________ to __________
Commission file number: 000-22026
A. Full title of the plan and the address of the plan, if
different from that of the issuer named below:
RENT-WAY, INC. 401(k) RETIREMENT SAVINGS PLAN
B. Name of issuer of securities held pursuant to the plan and the
address of its principal executive office:
RENT-WAY, INC.
3230 WEST LAKE ROAD
ERIE, PENNSYLVANIA 16505
<PAGE> 2
REQUIRED INFORMATION
CONTENTS
<TABLE>
<CAPTION>
PAGES
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<S> <C>
Report of Independent Accountants..................................................................... 3
Financial Statements:
Statement of Net Assets Available for Plan Benefits, With Fund Information
at December 31, 1997........................................................................... 4
Statement of Net Assets Available for Plan Benefits, With Fund Information
at December 31, 1996........................................................................... 5
Statement of Changes in Net Assets Available for Plan Benefits, With Fund
Information for the year ended December 31, 1997............................................... 6
Notes to Financial Statements...................................................................... 7-12
Supplemental Schedules:
Item 27a - Schedule of Assets Held for Investment Purposes at December 31, 1997.................... 13
Item 27d - Schedule of Reportable Transactions for the year ended December 31, 1997................ 14
</TABLE>
RENT-WAY, INC. 401(k) RETIREMENT SAVINGS PLAN
2
<PAGE> 3
REPORT OF INDEPENDENT ACCOUNTANTS
To the Employee Benefits Committee
and the Participants in the
401(k) Retirement Savings Plan:
We have audited the accompanying statements of net assets available for plan
benefits of the Rent-Way, Inc. 401(k) Retirement Savings Plan (the "Plan") as of
December 31, 1997 and 1996 and the statement of changes in net assets available
for plan benefits for the year ended December 31, 1997. These financial
statements are the responsibility of the Plan's management. Our responsibility
is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits of the Plan as
of December 31, 1997 and 1996, and the changes in net assets available for plan
benefits for the year ended December 31, 1997 in conformity with generally
accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the financial
statements taken as a whole. The supplemental schedules listed in the
accompanying index are presented for the purpose of additional analysis and are
not a required part of the basic financial statements, but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. The Fund Information in the statements of net assets available for plan
benefits and the statement of changes in net assets available for plan benefits
is presented for purposes of additional analysis rather than to present the net
assets available for plan benefits and changes in net assets available for plan
benefits of each fund. The supplemental schedules and Fund Information have been
subjected to the auditing procedures applied in the audit of the basic financial
statements and, in our opinion, are fairly stated in all material respects in
relation to the basic financial statements taken as a whole.
Cleveland, Ohio
July 14, 1998 PricewaterhouseCoopers LLP
3
<PAGE> 4
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
for the year ended December 31, 1997
<TABLE>
<CAPTION>
PUTNAM
THE CONVERTIBLE
PUTNAM GEORGE INCOME- THE PUTNAM
MONEY PUTNAM GROWTH GROWTH AND PUTNAM NEW PUTNAM
MARKET FUND OF TRUST INCOME OPPORTUNITIES VOYAGER II
FUND BOSTON FUND FUND FUND FUND
---- ------ ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Investments:
Investments, at fair value $97,304 $45,815 $366,545 $ 384,368 $ 848,907
Cash equivalents $108,548
Employer contributions
receivable
Participants
contributions
receivable 1,531 1,468 767 11,024 19,707 13,262
Participant notes
receivable -------- ------- -------- -------- --------- ---------
Total assets 110,079 98,772 46,582 377,569 404,075 862,169
-------- ------- -------- -------- --------- ---------
Net assets available for plan
benefits $110,079 $98,772 $ 46,582 $377,569 $ 404,075 $ 869,169
======== ======= ======== ======== ========= =========
PUTNAM PUTNAM
INTERNATIONAL HIGH YIELD LOAN RENT-WAY
GROWTH FUND TRUST FUND FUND STOCK FUND TOTAL
----------- ---------- ---- ---------- -----
<S> <C> <C> <C> <C> <C>
Investments:
Investments, at fair value $ 243,730 $ 34,058 $1,548,346 $3,569,073
Cash equivalents $108,548
Employer contributions
receivable 26,839 26,839
Participants
contributions
receivable 6,641 1,945 $ 2,713 9,955 69,013
Participant notes 101,637 101,637
receivable ----------- --------- -------- ---------- ----------
Total assets 250,371 36,003 104,350 1,585,140 3,875,110
----------- --------- -------- ---------- ----------
Net assets available for plan
benefits $ 250,371 $ 36,003 $104,350 $1,585,140 $3,875,110
=========== ========= ======== ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
RENT-WAY, INC. 401(k) RETIREMENT SAVINGS PLAN
4
<PAGE> 5
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
for the year ended December 31, 1996
<TABLE>
<CAPTION>
VANGUARD VANGUARD VANGUARD VANGUARD
VANGUARD INTERMEDIATE- WELLESLEY ASSET UTILITIES VANGUARD VANGUARD
PRIME TERM BOND INCOME ALLOCATION INCOME WINDSOR II U.S. GROWTH
ASSETS PORTFOLIO PORTFOLIO FUND FUND PORTFOLIO FUND PORTFOLIO
--------- --------- ---- ---- --------- ---- ---------
Investments:
<S> <C> <C> <C> <C> <C> <C> <C>
Investments, at fair value $ 2,345 $ 20,575 $78,300 $ 33,798 $168,194 $ 99,804
Cash equivalents $ 72,574
Employer contributions
receivable
Participant notes
receivable
--------- --------- -------- -------- --------- -------- ---------
Total assets 72,574 2,345 20,575 78,300 33,798 168,194 99,804
--------- --------- -------- -------- --------- -------- ---------
Net assets available for
plan benefits $ 72,574 $ 2,345 $ 20,575 $ 78,300 $ 33,798 $168,194 $ 99,804
======== ========= ======== ======== ========= ======== =========
VANGUARD
VANGUARD INTERNATIONAL VANGUARD
PRIMECAP GROWTH EXPLORER RENT-WAY
ASSETS FUND PORTFOLIO FUND LOAN FUND STOCK FUND TOTAL
---- --------- ---- --------- ---------- -----
Investments:
<S> <C> <C> <C> <C> <C> <C>
Investments, at fair value $ 592,286 $ 139,100 $39,985 $645,626 $1,820,013
Cash equivalents 72,574
Employer contributions
receivable 84,318 84,318
Participant notes
receivable $49,463 49,463
-------- -------- ------- ------- -------- ----------
Total assets 592,286 139,100 39,985 49,463 729,944 2,026,368
-------- -------- ------- ------- -------- ----------
Net assets available for
plan benefits $592,286 $139,100 $39,985 $49,463 $729,944 $2,026,368
======== ======== ======= ======= ======== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
RENT-WAY, INC. 401(k) RETIREMENT SAVINGS PLAN
5
<PAGE> 6
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND
INFORMATION
for the year ended December 31, 1997
<TABLE>
<CAPTION>
THE PUTNAM
PUTNAM GEORGE CONVERTIBLE THE PUTNAM
MONEY PUTNAM INCOME- GROWTH AND PUTNAM NEW PUTNAM PUTNAM
MARKET FUND OF GROWTH TRUST INCOME OPPORTUNITIES VOYAGER II INTERNATIONAL
FUND BOSTON FUND FUND FUND FUND GROWTH FUND
---- ------ ---- ---- ---- ---- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets
attributed to:
Net appreciation
(depreciation) in fair
value of assets $ 10 $ 7,781 $ 894 $ (1,525) $ 36,480 $ 131,473 $ 12,724
Interest 196 63 52 696 1,515 1,077 524
Dividends 4,834 9,946 5,612 48,312 11,000 16,841 13,791
-------- -------- ---------- ---------- ---------- --------- ----------
5,040 17,790 6,558 47,483 48,995 149,391 27,039
Contributions:
Participants 29,700 26,352 13,442 143,947 274,768 209,205 77,357
Employer's
-------- -------- ---------- ---------- ---------- --------- ----------
29,700 26,352 13,442 143,947 274,768 209,205 77,357
-------- -------- ---------- ---------- ---------- --------- ----------
Total additions 34,740 44,142 20,000 191,430 323,763 358,596 104,396
Deductions:
Withdrawals (24,395) (13,099) (9,033) (41,919) (37,788) (89,267) (27,674)
Loans (2,858) (8,638) (726) (15,349) (17,963) (3,089) (5,901)
-------- -------- ---------- ---------- ---------- --------- ----------
Total deductions (27,253) (21,737) (9,759) (57,268) (55,751) (92,356) (33,575)
-------- -------- ---------- ---------- ---------- --------- ----------
Net increase/decrease prior to
interfund transfers 7,487 22,405 10,241 134,162 268,012 266,240 70,821
-------- -------- ---------- ---------- ---------- --------- ----------
Transfer between funds 27,673 (22,508) 2,543 75,213 (3,726) 3,643 40,450
-------- -------- ---------- ---------- ---------- --------- ----------
Net increase/decrease 35,160 (103) 12,784 209,375 264,286 269,883 111,271
Net assets available for plan
benefits, at beginning
of year (Note 1) 74,919 98,875 33,798 168,194 139,789 592,286 139,100
-------- -------- ---------- ---------- ---------- --------- ----------
Net assets available for plan
benefits, at end of year $110,079 $ 98,772 $ 46,582 $ 377,569 $ 404,075 $ 862,169 $ 250,371
======== ======== ========== ========== ========== ========= ==========
</TABLE>
<TABLE>
<CAPTION>
PUTNAM
HIGH YIELD RENT-WAY
TRUST FUND LOAN FUND STOCK FUND TOTAL
---------- --------- ---------- -----
<S> <C> <C> <C> <C>
Additions to net assets
attributed to:
Net appreciation
(depreciation) in fair
value of assets $ 413 $ 675,227 $ 863,477
Interest 91 $ 4,817 603 9,634
Dividends 1,262 1,769 113,367
-------- --------- ----------- ----------
1,766 4,817 677,599 986,478
Contributions:
Participants 34,963 2,713 125,775 938,222
Employer's 425,487 425,487
-------- --------- ----------- ----------
34,963 2,713 551,262 1,363,709
-------- --------- ----------- ----------
Total additions 36,729 7,530 1,228,861 2,350,187
Deductions:
Withdrawals (2,958) (17,174) (168,790) (432,097)
Loans (95) (14,729) (69,348)
-------- --------- ----------- ----------
Total deductions (3,053) (17,174) (183,519) (501,445)
-------- --------- ----------- ----------
Net increase/decrease prior to
interfund transfers 33,676 (9,644) 1,045,342 1,848,742
-------- --------- ----------- ----------
Transfer between funds 2,327 64,531 (190,146) --
-------- --------- ----------- ----------
Net increase/decrease 36,003 54,887 855,196 1,848,742
Net assets available for plan
benefits, at beginning
of year (Note 1) -- 49,463 729,944 2,026,368
-------- --------- ----------- ----------
Net assets available for plan
benefits, at end of year 36,003 $ 104,350 $ 1,585,140 $3,875,110
======== ========= =========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
RENT-WAY, INC. 401(k) RETIREMENT SAVINGS PLAN
6
<PAGE> 7
NOTES TO FINANCIAL STATEMENTS
1. DESCRIPTION OF PLAN:
The following description of the Rent-Way, Inc. 401(k) Retirement Savings
Plan ("the Plan") provides only general information. Participants should
refer to the Plan agreement for a more complete description of the Plan's
provisions.
GENERAL: The Plan is a defined contribution plan covering all full-time
employees of Rent-Way, Inc. (the "Company") who are age eighteen or
older, as of December 31, 1996, and age twenty-one or older beginning
January 1, 1997. It is subject to the provisions of the Employee
Retirement Income Security Act of 1974 (ERISA).
CONTRIBUTIONS: Each year, participants may contribute up to fifteen
percent of pre-tax annual compensation, as defined in the Plan.
Participants may also contribute amounts representing distributions from
other qualified defined benefit or contribution plans. The Company makes
a matching contribution equal to a specified percentage of the
participant's contribution (up to a maximum of six percent of a
participants' total compensation). Additional amounts may be contributed
at the Company's discretion. All employer contributions are invested in
the Company's common stock, with the exception that, to avoid the
retention of idle funds, such contributions may be invested in cash
equivalent securities for periods generally not exceeding thirty days.
PARTICIPANT ACCOUNTS: Each participant's account is credited with the
participant's contribution and allocations of (a) the Company's
contributions and, (b) Plan earnings. Allocations are based on
participant earnings, as defined in the Plan agreement. The benefit to
which a participant is entitled is the benefit that can be provided from
the participant's vested account.
VESTING: Participants are immediately vested in their contributions plus
actual earnings thereon. The Company's matching contributions plus actual
earnings thereon vest based on years of continuous service, as defined in
the Plan agreement. A participant's employer contributions vest in twenty
percent increments per year and are fully vested after five years of
credited service.
CASH EQUIVALENTS: Cash equivalents consist of short-term highly liquid
investments, with a three-month or less maturity which are readily
convertible into cash.
CHANGE OF TRUSTEE: At December 31, 1996, the Plan changed trustee, from
The Vanguard Group ("Vanguard") to Putnam Fiduciary Trust Company, and
custodian responsibilities from Boetger Vargo & Associates to Putnam
Investments ("Putnam"). Net assets available for plan benefits at
December 31, 1996 in the Vanguard funds have been combined as appropriate
and reported as net assets available for plan benefits, at the beginning
of the year in the Putnum funds.
RENT-WAY, INC. 401(k) RETIREMENT SAVINGS PLAN
7
<PAGE> 8
NOTES TO FINANCIAL STATEMENTS, CONTINUED
1. DESCRIPTION OF PLAN, CONTINUED:
INVESTMENT OPTIONS: Upon enrollment in the Plan, a participant may direct
employee contributions in five percent increments in any of the
investment options.
The following investment options were available until December 31, 1996:
PRIME PORTFOLIO-- The Prime Portfolio is classified as a Money
Market Fund. The objective of the fund is to seek maximum current
income that is consistent with preservation of capital and
liquidity.
INTERMEDIATE-TERM BOND -- The Intermediate-Term Bond Portfolio is
considered an Income Fund. The fund invests approximately two-thirds
of its assets in U.S. Government bonds and the remainder in
investment-grade corporate bonds.
WELLESLEY INCOME FUND -- The Wellesley Income Fund is a Balanced
Fund. Approximately sixty percent of the fund's assets are invested
in high-quality corporate bonds and U.S. Government securities, and
forty percent in high-quality stocks with above-average dividend
yields.
ASSET ALLOCATION FUND -- The Asset Allocation Fund is also
classified as a Balanced Fund. The fund seeks to maximize total
return, with moderate risk, by actively managing the fund's
allocation to common stocks, bonds and cash reserves.
UTILITIES INCOME PORTFOLIO-- The Utilities Income Portfolio is
classified as a Growth and Income Fund. The Utilities Income
Portfolio invests 75% of assets in utility company stocks with the
remainder in high-quality utility bonds.
WINDSOR II FUND -- The Windsor II Fund is also classified as a
Growth and Income Fund. The Windsor II Fund uses a "value-oriented"
strategy, which emphasizes stocks with price per earnings ratios
lower than the market and dividends yields higher than the market.
U.S. GROWTH PORTFOLIO -- The U.S. Growth Portfolio invests in equity
securities of high-quality, seasoned U.S. companies. The Portfolio
emphasizes companies with exceptional growth records, strong market
positions, reasonable financial strength, and low sensitivity to
changing economic conditions.
PRIMECAP FUND -- The PRIMECAP Fund is classified as a Growth Fund.
The objective of the fund is to seek long-term growth of capital.
The PRIMECAP Fund invests in common stocks of companies selected
primarily on the basis of greater-than-average earnings growth
potential, strength of industry position, and quality of management.
INTERNATIONAL GROWTH PORTFOLIO -- The Vanguard International Growth
Portfolio is classified as an International Fund. The fund invests
in non-U.S. equity securities selected for appreciation potential.
The fund tends to be widely diversified in market capitalization and
geographically, and may include companies based in countries such as
Japan, the United Kingdom, Germany, France, Switzerland, Sweden,
etc.
RENT-WAY, INC. 401(k) RETIREMENT SAVINGS PLAN
8
<PAGE> 9
NOTES TO FINANCIAL STATEMENTS, continued
1. Description of Plan, Continued:
EXPLORER FUND -- The Explorer Fund is classified as an Aggressive
Growth Fund. The primary objective of the fund is to seek long-term
growth. The fund invests in securities of small, unseasoned
companies that are deemed to offer favorable prospects for growth.
RENT-WAY STOCK -- This fund is comprised exclusively of Common
Shares, without par value of the Company (Common Shares). Each
participant electing to purchase Common Shares through the Stock
Fund is permitted to vote such Common Shares in the same manner as
any other shareholder and is furnished proxy materials to such
effect. If a participant does not vote their proxy, the trustee
votes the proxy for the participant's Common Shares. Common Shares
purchases under the account are generally purchased on the open
market for cash. The price of Common Shares purchased on the open
market is priced for each participant's account at an average
purchase price of all shares purchased, plus brokerage fees, taxes,
commissions and expenses incident to the purchase. No more than 50%
of a participant's contributions may be invested in the Stock Fund.
The following investments were available as of January 1, 1997:
PUTNAM MONEY MARKET FUND -- Putnam Money Market Fund seeks as high a
rate of current income as Putnam Investment Management, Inc.
believes is consistent with preservation of capital and maintenance
of liquidity. It is designed for investors seeking current income
with stability of principal.
THE GEORGE PUTNAM FUND OF BOSTON -- The George Putnam Fund of Boston
seeks to provide a balanced investment composed of a
well-diversified portfolio of stocks and bonds, which will produce
both capital growth and current income.
PUTNAM CONVERTIBLE INCOME-GROWTH TRUST FUND -- Putnam Convertible
Income-Growth Trust seeks, with equal emphasis, current income and
capital appreciation. Its secondary objective is conservation of
capital. A particular security selected for the fund's portfolio
need not reflect all aspects of the fund's investment objectives.
THE PUTNAM GROWTH AND INCOME FUND -- The Putnam Growth and Income
Fund seeks capital growth and current income. The fund is designed
for investors seeking a diversified portfolio offering the
opportunity for capital growth while also providing current income.
PUTNAM NEW OPPORTUNITIES FUND -- Putnam New Opportunities Fund seeks
long-term capital appreciation. Current income is only an incidental
consideration.
PUTNAM VOYAGER II FUND -- Putnam Voyager II Fund seeks long-term
growth of capital. The fund is designed for investors willing to
assume above-average risk in return for above-average capital growth
potential.
RENT-WAY, INC. 401(k) RETIREMENT SAVINGS PLAN
9
<PAGE> 10
NOTES TO FINANCIAL STATEMENTS, continued
1. DESCRIPTION OF PLAN, CONTINUED:
PUTNAM INTERNATIONAL GROWTH FUND -- Putnam International Growth Fund
seeks capital appreciation. The fund is designed for investors
seeking capital appreciation primarily through a diversified
portfolio of equity securities of companies located in a country
other than the United Stated.
PUTNAM HIGH YIELD TRUST FUND -- Putnam High Yield Trust is
registered under the Investment company Act of 1940, as amended, as
a diversified, open-end management investment company. The fund
seeks high current income by investing primarily in high-yielding,
lower-rated fixed-income securities constituting a portfolio that
Putnam Investment Management, Inc. believes does not involve undue
risk to income or principal.
RENT-WAY STOCK -- This fund is comprised exclusively of Common
Shares, without par value of the Company (Common Shares). Each
participant electing to purchase Common Shares through the Stock
Fund is permitted to vote such Common Shares in the same manner as
any other shareholder and is furnished proxy materials to such
effect. If a participant does not vote their proxy, the trustee
votes the proxy for the participant's Common Shares. Common Shares
purchases under the account are generally purchased on the open
market for cash. The price of Common Shares purchased on the open
market is priced for each participant's account at an average
purchase price of all shares purchased, plus brokerage fees, taxes,
commissions and expenses incident to the purchase. No more than 50%
of a participant's contributions may be invested in the Stock Fund.
PARTICIPANT LOANS: Participants may borrow from their fund accounts a
minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50
percent of their account balance. Loan transactions are treated as a
transfer to (from) the investment fund from (to) the Loan Fund. Loan terms
shall not exceed 5 years except in the case of a loan for the purpose of
acquiring any house, apartment, condominium, or in certain circumstances a
mobile home. The loans are collateralized by the balance in the
participant's account and bear interest at a rate commensurate with local
prevailing rates as determined quarterly by the Plan administrator.
Interest rates range from 6 percent to 10 percent. Principal and interest
are paid at least quarterly.
PAYMENT OF BENEFITS: On termination of service due to death, disability or
retirement, a participant or beneficiary receives a lump-sum amount equal
to the value of the participant's vested interest in his or her account.
For termination of service due to other reasons, a participant may receive
the value of the vested interest in his or her account as a lump-sum
distribution.
FORFEITED ACCOUNTS: At December 31, 1997 and 1996, forfeited nonvested
accounts totaled $38,436 and $22,735, respectively. These amounts are used
to fund administrative expenses otherwise funded by the Company.
RENT-WAY, INC. 401(k) RETIREMENT SAVINGS PLAN
10
<PAGE> 11
NOTES TO FINANCIAL STATEMENTS, CONTINUED
1. DESCRIPTION OF PLAN, CONTINUED:
PLAN TERMINATION: Although the Company has not expressed any intent to do
so, the Company has the right under the Plan to discontinue its
contributions at any time and to terminate the Plan subject to the
provisions of ERISA. In the event the Plan is terminated, participants
will become fully vested in all contributions and related earnings in
their accounts.
ADMINISTRATIVE EXPENSES: Administrative expenses of the Plan are paid by
the Company.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
BASIS OF ACCOUNTING: The financial statements of the Plan are prepared
under the accrual basis of accounting.
USE OF ESTIMATES: The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of additions and deductions
during the reporting period. Actual results could differ from those
estimates.
INVESTMENT VALUATION AND INCOME RECOGNITION: The Plan's investments are
stated at fair value. Shares of registered investment companies are
valued at quoted market prices which represent the net asset value of
shares held by the Plan at year-end. The Company stock is valued at the
last sales price of the last business day of the year. Participant notes
receivable are valued at cost which approximates fair value.
Purchases and sales of securities are recorded on a trade-date basis.
Interest income is recorded on the accrual basis. Dividends are recorded
on the ex-dividend date.
The Plan presents in the statement of changes in net assets available for
plan benefits, the net appreciation (depreciation) in the fair value of
its investment which consists of the realized gains or losses and the
unrealized appreciation (depreciation) on those investments.
PAYMENT OF BENEFITS: Benefits are recorded when paid.
3. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500:
There were no differences between net assets available for plan benefits
at December 31, 1997 and 1996 or between changes in net assets available
for plan benefits for the year ended December 31, 1997 per the financial
statements and the respective Form 5500's. In addition, investments at
fair value per the financial statements and Form 5500 agree in total.
However, minor differences (less than $100) of the amount of investments
at fair value within certain individual investment funds exist between
the 1997 financial statements and the 1997 Form 5500.
RENT-WAY, INC. 401(k) RETIREMENT SAVINGS PLAN
11
<PAGE> 12
NOTES TO FINANCIAL STATEMENTS, CONTINUED
4. TAX STATUS:
Since inception, the Plan has filed for, but not received, a determination
from the Internal Revenue Service whether the Plan is designed in
accordance with applicable sections of the Internal Revenue Code ("IRC").
However, the Plan administrator and the Plan's tax counsel believe that
the Plan is designed and is currently being operating in compliance with
the applicable requirements of the IRC.
RENT-WAY, INC. 401(k) RETIREMENT SAVINGS PLAN
12
<PAGE> 13
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES--
SEE FORM 5500, ITEM 27A
Year Ended December 31, 1997
<TABLE>
<CAPTION>
CURRENT
ISSUE DESCRIPTION COST VALUE
-------------------- ------------------------------------------------ --------------- --------------
<S> <C> <C> <C>
Putnam Investments Putnam Money Market Fund* $ 108,652 $ 108,548
The George Putnam Fund of Boston* 92,764 97,304
Putnam Convertible Income -Growth Trust Fund* 45,698 45,815
The Putnam Growth and Income Fund* 373,937 366,545
Putnam New Opportunities Fund* 353,835 384,368
Putnam Voyager II Fund 726,735 848,907
Putnam International Growth Fund* 236,933 243,730
Putnam High Yield Trust Fund* 33,761 34,058
Loan Fund N/A 101,637
Rent-Way Stock Fund** 1,009,500 1,548,346
</TABLE>
* These investment options are interests in registered investment companies
therefore the securities do not have maturity dates, rates of interest,
collateral, par or maturity values.
** The Rent-Way Stock Fund includes sponsoring company common stock therefore
maturity dates, rates of interest, collateral, par or maturity values are
not applicable.
RENT-WAY, INC. 401(k) RETIREMENT SAVINGS PLAN
13
<PAGE> 14
SCHEDULE OF REPORTABLE TRANSACTIONS -- SEE FORM 5500, ITEM 27d
Year Ended December 31, 1997
<TABLE>
<CAPTION>
CURRENT
VALUE OF
EXPENSE ASSET ON
PURCHASE SELLING LEASE INCURRED WITH COST OF TRANSACTION NET GAIN
PARTY DESCRIPTION PRICE PRICE RENTAL TRANSACTIONS ASSET DATE OR (LOSS)
--------------- --------------- ---------- ------- -------- ------------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Rent-Way, Inc. Rent-Way Stock $ 9.625 N/A N/A $ $ 107,059 $ 107,059 $
Rent-Way, Inc. Rent-Way Stock 14.88 N/A N/A 164,530 164,530
</TABLE>
RENT-WAY, INC. 401(k) RETIREMENT SAVINGS PLAN
14
<PAGE> 15
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the trustees have duly caused this annual report to be signed on its behalf by
the undersigned hereunto duly authorized.
RENT-WAY, INC. 401(k) RETIREMENT
Date: July 14, 1998 SAVINGS PLAN
By: /s/ Jeffrey A. Conway
-----------------------------
Jeffrey A. Conway, Trustee
15
<PAGE> 16
INDEX TO EXHIBITS
Exhibit No. Name
----------- ----
23 Consent of PricewaterhouseCoopers LLP
16
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EXHIBIT 23
Consent of Independent Accountants
We consent to the incorporation by reference in the registration statement of
Rent-Way Inc. on Form S-8 (File Number 0-22026) of our report dated July 14,
1998, on our audits of the financial statements and Supplemental schedules of
Rent-Way, Inc. 401(K) Retirement Savings Plan as of December 31, 1997 and 1996,
and for the year ended December 31, 1997, which report is included in this
Annual Report on Form 11-K.
PricewaterhouseCoopers LLP
Cleveland, Ohio
July 14, 1998