Having shifted from selling stores to buying them, Rent-Way is we...

in its markets, CFO William McDonnell told us. “The environment for opportunities out there is something we're going to pursue aggressively in 2006,” Short said. Most of the chains available would cost less than 10 times monthly revenue, company officials said. Rent-Way has made some purchases the past 90 days, including 12 stores from Rent- a-Center, which is closing some outlets. If Rent-Way succeeds in buying some dealers, it will likely reduce new store openings planned for 2006, McDonnell said. The sales are being driven retailers battling effects of the hurricanes and high gas prices, McDonnell said. For Rent- Way, a buying binge represents a sharp change. The chain had an accounting scandal in 2000-2001 and sold more than 200 of its stores to RAC. Meanwhile, Rent-Way posted an increase in 4th-quarter net income to $4.3 million from $3.8 million a year earlier, as it benefited from a $9 million adjustment tied to a conversion feature of the chain’s preferred stock. The adjustment helped offset losses tied to the hurricanes ($1.9 million) and a $2.2 million write-off of jewelry receivables tied to switching vendors, the company said. Revenue rose to $125 million from $121.3 million on a 1.4% gain in same-store sales. Sales fell short of Rent-Way’s projections for revenue of $125-$128 million due largely to the hurricanes. Rental revenue jumped to $104.5 million from $100.7 million, while revenue from prepaid phone business dpi Teleconnect declined to $3.7 million from $5.2 million. Rent-Way benefited from strong sales of DLP-based rear projection TVs -- offsetting a decline in CRT-products, which are a “diminishing” portion of the chain’s revenues, McDonnell said Rent-Way carries rear projection TV from Mitsubishi and Philips, among others.