Rent-A-Center profit more than doubles after year-ago charge

Rent-A-Center Inc., the nation's largest rent-to-own operator, said Monday its first-quarter profit more than doubled from a year-ago quarter that was weighed down by a heavy litigation expense.

For the quarter ended March 31, net income jumped to $36.4 million, or 54 cents per share, from $15.1 million, or 21 cents per share, in the prior-year quarter.

The latest quarter included a restructuring charge of 3 cents per share. Excluding that charge, the company earned 57 cents per share.

In the year-ago quarter, the company recorded a litigation expense of $51.3 million.

Analysts polled by Thomson Financial expected profit of 50 cents per share in the latest quarter.

Revenue rose less than 1 percent to $756.6 million from $755.3 million in the first quarter of 2007. Analysts predicted revenue of $738.5 million.

Same-store sales, or sales at stores open at least a year, rose 2.8 percent. Same-store sales is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.

Shares rose $1.48, or 7.3 percent, to $21.75 in electronic after-hours trading. During regular trading, shares climbed 33 cents to close at $20.27. The stock has ranged from $11.67 to $29.20 over the past year.