UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT Pursuant to Section 13 OR 15(d) of The Securities Exchange
Act of 1934
June 30, 2000 (June 29, 2000)
Date of Report (Date of earliest event reported)
Rent-Way, Inc.
(Exact name of registrant as specified in its charter)
Pennsylvania 000-22026 25-1407782
(State or other jurisdiction (Commission File Number(IRSEmployer of corporation)
Identification No.)
One RentWay Place, Erie, Pennsylvania 16505
(Address of principal executive offices) Zip Code
Registrant's telephone number, including area code: (814) 455-5378
-------------------------
Item 5. Other Events
ERIE, PA -- Rent-Way, Inc. (NYSE: RWY) today announced its purchase of an
additional 21 percent stake in dPi Teleconnect, LLC, a provider of pre-paid
local telephone service. Rent-Way has now invested a total of $7.5 million in
dPi and now owns 70 percent of dPi. As a result of this transaction, Rent-Way
will report dPi's results on a consolidated basis, starting in the current
quarter.
"dPi's progress since we made our initial investment in January has been
exceptional," stated Bill Morgenstern, Rent-Way's Chairman and Chief Executive
Officer. "dPi agents now operate from over 1100 locations, up from 550 in
January, and include a number of Rent-Way stores. This is well ahead of our
plan. dPi also continues to enjoy strong revenue growth and currently has over
34,000 subscribers."
In April, Rent-Way and Western Union announced an agreement, under which Western
Union would provide access at all of its 30,000 agent locations to dPi
Teleconnect customers for payments. "We continue to develop marketing plans with
our Western Union partners. Our first emphasis remains on markets where Western
Union complements our existing agent base," added Mr. Morgenstern.
Dave Dorwart, President and Chief Executive Officer of dPi, observed, "The 1990
census identified 6 million homes with dead dial tones. Many of these homes are
located near Rent-Way stores and Western Union agent locations. The pre-paid
local phone market is expanding rapidly, as more companies have realized the
high value customers place on this service. The strong response by these
customers to dPi is encouraging."
William McDonnell, Vice President and Chief Financial Officer of Rent-Way,
noted, "At the time of our initial investment, we forecasted dPi revenues of $20
million and a neutral impact on EPS in calendar 2000. We remain comfortable with
these expectations."
Rent-Way is the second-largest operator of rental-purchase stores in the USA.
Rent-Way rents quality, brand name merchandise such as home entertainment
equipment, furniture and major appliances through 1109 stores operating in 41
states.
This news release contains certain forward looking statements within the meaning
of Section 27(A)(i) of the Securities Act of 1933 and Section 21E(i)(1) of the
Securities Exchange Act of 1934 that involve known and unknown risks,
uncertainties and other factors that may cause actual results to be materially
different from any future results, performance or achievements expressed or
implied by such statements. Such factors include dPi's ability to manage its
growth and to continue to grow at a fast rate and dPi's ability to execute its
marketing plans with Western Union. Additional factors are set forth in
Rent-Way's Annual Report on Form 10-K for the year ended September 30,1999 and
Quarterly Report on Form 10-Q for the quarter ended March 31, 2000.
For more information, contact: William E. Morgenstern, CEO
(800)736-8929 or visit www.rentway.com
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
_______ Rent-Way, Inc.___________
(Registrant)
Date June 30, 2000 /s/ William A. McDonnell
------------------------- --------------------------------------
(Signature)
William A. McDonnell
Vice President and Chief Financial Officer
Date June 30, 2000 /s/ Matthew J. Marini
-------------------------- --------------------------------------------
(Signature)
Matthew J. Marini
Controller and Chief Accounting Officer
