Click here to close now.


News Feed Item

easyhome Ltd. Reports Results for the Fourth Quarter and Year Ended December 31, 2013

Record Revenues and Net Income Achieved in Q4 and Fiscal 2013 Full Year Adjusted Net Income Increased 35%

MISSISSAUGA, ONTARIO -- (Marketwired) -- 03/05/14 -- easyhome Ltd. (TSX: EH) ("easyhome" or the "Company"), the Canadian leader in providing goods and financial services to the cash and credit constrained consumer, today announced its results for the fourth quarter and full year ended December 31, 2013.

Revenue for the fourth quarter of 2013 increased to $57.8 million, an increase of 11.8% from $51.7 million in the fourth quarter of 2012. The growth was driven primarily by the expansion of easyfinancial and the related growth of its consumer loans receivable portfolio. Revenue for easyfinancial increased by 65% for the fourth quarter of 2013 compared to the fourth quarter of 2012. Operating income for the quarter was $7.5 million, up $1.7 million or 30% compared to the fourth quarter of 2012. Net income for the quarter was $4.3 million, an increase of 15% compared with $3.8 million reported in the fourth quarter of 2012. Excluding the impact of restructuring and other non-recurring items in the fourth quarter of 2012, operating income and net income increased 51% and 50%, respectively. Diluted earnings per share for the quarter, adjusting for restructuring and other items in 2012, increased by 38% to $0.33 compared to $0.24 for the fourth quarter of 2012.

"We are delighted to report continued strong growth in revenue, operating income and net income in the fourth quarter," said David Ingram, easyhome's President and Chief Executive Officer. "Same store sales growth in the quarter was 66% for easyfinancial and 6.8% for easyhome Leasing. As a result, our adjusted operating income increased by 51%."

During the fourth quarter of 2013, the consumer loans receivable portfolio experienced a record level of growth, increasing by $17.9 million compared with growth of $11.1 million in the fourth quarter of 2012. The gross consumer loans receivable as at December 31, 2013 was $110.7 million compared with $70.7 million as at December 31, 2012.

Other highlights for the fourth quarter of 2013 include:

easyfinancial Services

--  Operating margin of 34.1% for the fourth quarter of 2013 was up from
    27.3% reported for the same period in 2012. Strong growth in the quarter
    coupled with improvements in consumer loan losses positively impacted
--  During the quarter, easyfinancial opened 10 new stand-alone locations.
    The Company plans to continue to open new locations and increase its
    marketing investment to support growth.

easyhome Leasing

--  Same store revenue growth excluding easyfinancial Services of 6.8%,
    driven mainly by the migration of the lease portfolio of closed stores
    to nearby locations and improved retail execution.
--  The operating margin of the leasing business for the fourth quarter of
    2013 was 16.4%, up from 15.6% reported in the fourth quarter of 2012.

Fiscal 2013 Results

For the full year, easyhome recorded revenues of $218.8 million, up 9.6% compared with $199.7 million in fiscal 2012. Operating income for the year was $25.0 million compared with $17.7 million in fiscal 2012, an increase of 41%. Excluding the restructuring and other charges in 2012, adjusting operating earnings increased of 44% over fiscal 2012. Both operating income and adjusted operating earnings for 2013 compared to 2012 were negatively impacted by a $1.8 million increase in stock based incentive compensation plan expenses, driven by the 92% year over year increase in the Company's share price.

Net income for 2013 was $14.2 million compared to adjusted net income (adjusted for unusual items) of $10.5 million for 2012. Earnings per share increased from $0.92 to $1.15 cents. On a per share basis and excluding unusual items in 2012, earnings per share increased from $0.87 to $1.15, an increase of 32.2%.

"My thanks go out to our entire team who work tirelessly to satisfy the needs of countless cash and credit constrained consumers in Canada who are in need of goods and financial services but who have been neglected by mainstream financial services," said David Ingram. "This was our twelfth consecutive year of growing revenues and producing positive net income."

In addition to the strong financial performance during 2013, the Company also made significant progress on its strategic initiatives.

--  The balance sheet was strengthened to support future growth by
    increasing the Company's debt facilities and completing a $20.0 million
    common share equity offering.
--  E-commerce transactional websites were launched for both business units,
    allowing the Company to reach customers who wish to transact
--  easyfinancial further prepared for its 3-year growth plan by
    implementing a new, industry leading credit underwriting model and
    opening a Shared Service Centre to provide operational support to the
    retail branches in areas such as collections, customer retention and
    customer care.
--  easyhome Leasing completed the integration of the 15 merchandise leasing
    stores acquired at the end of 2012.


Looking ahead, easyhome's strategic focus remains unchanged. The Company will focus on evolving its delivery channels to better meet the needs of its customers, expanding the size and scope of easyfinancial and executing with efficiency and effectiveness.

The Company included targets for 2014 in its previous press release announcing its results for the third quarter of 2013. Based on the strong results achieved in the fourth quarter of 2013, the Company has revised its targets for 2014 as follows:

--  Open 30 - 35 new easyfinancial locations with virtually all of these
    being stand-alone locations (unchanged).
--  easyfinancial gross consumer loans receivable portfolio growing to $160
    - $170 million (increased from $145 - $155 million).
--  easyfinancial margins of 28 - 32% (increased from 27 - 29%) will
    continue to be below the long-term expected margin of 35% due to the
    impact of increased marketing expenditures and the drag associated with
    new store openings, both of which are to accelerate growth and promote
    brand awareness..
--  easyhome Leasing expects to open two new Be-A-Contender franchise stores
    that are consolidated for financial reporting purposes and three new
    franchise stores (unchanged).
--  Based on these assumptions, the Company is targeting total revenue
    growth of 10 - 12% (unchanged).

The achievement of these targets by the Company, however, is predicated on a number of factors, including the pace of expansion of easyfinancial.

The Board of Directors has approved a quarterly dividend payment of $0.085 per share payable on April 11, 2014 to the holders of common shares of record as at the close of business on March 28, 2014.

About easyhome

As at March 5, 2014, easyhome Ltd. operated 236 easyhome leasing stores (including 9 consolidated franchise locations and 55 other franchise locations) and 127 easyfinancial locations.

easyhome Ltd. is the Canadian leader in providing goods and financial services to the cash and credit constrained consumer. easyhome Ltd. serves its customers through two key operating divisions, easyhome Leasing and easyfinancial. easyhome Leasing is Canada's largest merchandise leasing Company, offering top quality, brand-name household furnishings, appliances and home electronic products to consumers under weekly or monthly leasing agreements through both corporate and franchise stores. easyfinancial is a leading provider of consumer loans as an alternative to traditional banks and payday lenders. easyhome Ltd. is listed on the TSX under the symbol 'EH'. For more information, visit

The above analysis refers to certain financial measures, including same store revenue growth and gross consumer loans receivable which are not determined in accordance with International Financial Reporting Standards ("IFRS"). These measures do not have standardized meanings and may not be comparable to similar measures presented by other companies. These measures are defined in our Management's Discussion and Analysis for the period which is available on SEDAR or on the Company's website at or can be determined by reference to our financial statements. We discuss these measures as we believe that they facilitate the understanding of the results of our operations and financial position.

Forward-Looking Statements

This news release includes forward-looking statements about easyhome Ltd., including its business operations, strategy and expected financial performance and condition. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as 'expects', 'anticipates', 'intends', 'plans', 'believes' or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future financial performance (including revenue, earnings or growth rates), ongoing business strategies or prospects about future events is also a forward-looking statement. Forward- looking statements are based on certain factors and assumptions, including expected growth, results of operations and business prospects and are inherently subject to, among other things, risks, uncertainties and assumptions about our operations, economic factors and the industry generally. They are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied by forward-looking statements made by us, due to, but not limited to important factors such as our ability to enter into new lease and/or financing agreements, collect on existing lease and/or financing agreements, open new locations on favourable terms, secure new franchised locations, purchase products which appeal to our customers at a competitive rate, cope with changes in legislation, react to uncertainties related to regulatory actions, raise capital under favourable terms, manage the impact of litigation (including shareholder litigation), control costs at all levels of the organization and maintain and enhance our system of internal controls. We caution that the foregoing list is not exhaustive. The reader is cautioned to consider these and other factors carefully and not place undue reliance on forward-looking statements, which may not be appropriate for other purposes. We are under no obligation (and expressly disclaim any such obligation) to update or alter the forward-looking statements whether as a result of new information, future events or otherwise, unless otherwise required by law.

easyhome Ltd.

(expressed in thousands of Canadian dollars except earnings per share)

                            Three months ended            Years ended
                         December 31, December 31, December 31, December 31,
                                 2013         2012         2013         2012

Lease revenue                 37,788       39,124      153,347      156,049
Interest income               11,175        7,168       37,581       24,701
Other                          8,833        5,402       27,886       18,923
                              57,796       51,694      218,814      199,673

Salaries and benefits         17,159       16,478       66,127       63,885
Stock based compensation       1,349        1,039        3,803        2,035
Advertising and
 promotion                     1,841        1,899        7,379        7,757
Bad debts                      4,449        3,019       14,800        9,779
Occupancy                      6,674        6,465       26,232       25,832
Distribution and travel        1,803        1,765        6,988        7,300
Other                          3,433        2,933       14,808       12,988
Restructuring and other
 items                             -         (814)           -         (378)
                              36,708       32,784      140,137      129,198

Depreciation of lease
 assets                       12,158       12,334       48,078       48,379
Depreciation of property
 and equipment                 1,075        1,041        4,389        4,019
Amortization of
 intangible assets               384          273        1,309          621
Impairment, net                  (38)        (528)         (64)        (253)
                              13,579       13,120       53,712       52,766

Total operating expenses      50,287       45,904      193,849      181,964
Operating income               7,509        5,790       24,965       17,709

Finance costs                  1,414        1,215        5,638        2,643
Income before income
 taxes                         6,095        4,575       19,327       15,066

Income tax expense
 Current                         935         (536)       4,554        5,309
 Deferred                        824        1,345          591       (1,300)
                               1,759          809        5,145        4,009
Net income                     4,336        3,766       14,182       11,057

Basic earnings per share        0.34         0.32         1.16         0.92
Diluted earnings per
 share                          0.33         0.31         1.15         0.92

easyhome Ltd.

(expressed in thousands of Canadian dollars)

                                                        As at          As at
                                                 December 31,   December 31,
                                                         2013           2012

Cash                                                    2,329         4,631
Amounts receivable                                      7,206         5,536
Prepaid expenses                                        1,699           964
Consumer loans receivable                             103,936        66,584
Lease assets                                           68,453        68,075
Property and equipment                                 15,793        13,729
Deferred tax assets                                     3,997         4,232
Intangible assets                                       9,524         6,213
Goodwill                                               19,963        19,963
TOTAL ASSETS                                          232,900       189,927
Bank revolving credit facility                         23,496        21,281
Accounts payable and accrued liabilities               24,301        33,155
Income taxes payable                                    3,929         4,216
Dividends payable                                       1,130         1,012
Deferred lease inducements                              2,749         2,462
Unearned revenue                                        3,763         3,922
Provisions                                                 21           536
Term loan                                              37,878        18,330
TOTAL LIABILITIES                                      97,267        84,914
Shareholders' equity
Share capital                                          79,923        60,885
Contributed surplus                                     4,169         3,035
Accumulated other comprehensive income (loss)             307          (137)
Retained earnings                                      51,234        41,230
TOTAL SHAREHOLDERS' EQUITY                            135,633       105,013
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY            232,900       189,927

easyhome Ltd.
David Ingram
President & Chief Executive Officer
(905) 272-2788

easyhome Ltd.
Steve Goertz
Senior Vice President and Chief Financial Officer
(905) 272-2788
(905) 272-9886 (FAX)

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that Interface Masters Technologies, provider of leading network visibility and monitoring solutions, will exhibit at the 17th International CloudExpo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Interface Masters Technologies is a leading provider of high speed networking solutions focused on Gigabit, 10 Gigabit, 40 Gigabit and 100 Gigabit Ethernet network access and connectivity products. For over 20 ye...
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
As enterprises capture more and more data of all types – structured, semi-structured, and unstructured – data discovery requirements for business intelligence (BI), Big Data, and predictive analytics initiatives grow more complex. A company’s ability to become data-driven and compete on analytics depends on the speed with which it can provision their analytics applications with all relevant information. The task of finding data has traditionally resided with IT, but now organizations increasingl...
DevOps is gaining traction in the federal government – and for good reasons. Heightened user expectations are pushing IT organizations to accelerate application development and support more innovation. At the same time, budgetary constraints require that agencies find ways to decrease the cost of developing, maintaining, and running applications. IT now faces a daunting task: do more and react faster than ever before – all with fewer resources.
Interested in leveraging automation technologies and a cloud architecture to make developers more productive? Learn how PaaS can benefit your organization to help you streamline your application development, allow you to use existing infrastructure and improve operational efficiencies. Begin charting your path to PaaS with OpenShift Enterprise.
SYS-CON Events announced today that Harbinger Systems will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Harbinger Systems is a global company providing software technology services. Since 1990, Harbinger has developed a strong customer base worldwide. Its customers include software product companies ranging from hi-tech start-ups in Silicon Valley to leading product companies in the US a...
SYS-CON Events announced today that Machkey International Company will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Machkey provides advanced connectivity solutions for just about everyone. Businesses or individuals, Machkey is dedicated to provide high-quality and cost-effective products to meet all your needs.
SYS-CON Events announced today that JFrog, maker of Artifactory, the popular Binary Repository Manager, will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based in California, Israel and France, founded by longtime field-experts, JFrog, creator of Artifactory and Bintray, has provided the market with the first Binary Repository solution and a software distribution social platform.
“The Internet of Things transforms the way organizations leverage machine data and gain insights from it,” noted Splunk’s CTO Snehal Antani, as Splunk announced accelerated momentum in Industrial Data and the IoT. The trend is driven by Splunk’s continued investment in its products and partner ecosystem as well as the creativity of customers and the flexibility to deploy Splunk IoT solutions as software, cloud services or in a hybrid environment. Customers are using Splunk® solutions to collect ...
In recent years, at least 40% of companies using cloud applications have experienced data loss. One of the best prevention against cloud data loss is backing up your cloud data. In his General Session at 17th Cloud Expo, Bryan Forrester, Senior Vice President of Sales at eFolder, will present how organizations can use eFolder Cloudfinder to automate backups of cloud application data. He will also demonstrate how easy it is to search and restore cloud application data using Cloudfinder.
SYS-CON Events announced today that Agema Systems will exhibit at the 17th International Cloud Expo®, which will take place on November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Agema Systems is the leading provider of critical white-box rack solutions to data centers through the major integrators and value added distribution channels.
Clearly the way forward is to move to cloud be it bare metal, VMs or containers. One aspect of the current public clouds that is slowing this cloud migration is cloud lock-in. Every cloud vendor is trying to make it very difficult to move out once a customer has chosen their cloud. In his session at 17th Cloud Expo, Naveen Nimmu, CEO of Clouber, Inc., will advocate that making the inter-cloud migration as simple as changing airlines would help the entire industry to quickly adopt the cloud wit...
SYS-CON Events announced today that Secure Infrastructure & Services will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Secure Infrastructure & Services (SIAS) is a managed services provider of cloud computing solutions for the IBM Power Systems market. The company helps mid-market firms built on IBM hardware platforms to deploy new levels of reliable and cost-effective computing and hig...
Organizations already struggle with the simple collection of data resulting from the proliferation of IoT, lacking the right infrastructure to manage it. They can't only rely on the cloud to collect and utilize this data because many applications still require dedicated infrastructure for security, redundancy, performance, etc. In his session at 17th Cloud Expo, Emil Sayegh, CEO of Codero Hosting, will discuss how in order to resolve the inherent issues, companies need to combine dedicated a...
Clutch is now a Docker Authorized Consulting Partner, having completed Docker's certification course on the "Docker Accelerator for CI Engagements." More info about Clutch's success implementing Docker can be found here. Docker is an open platform for developers and system administrators to build, ship and run distributed applications. With Docker, IT organizations shrink application delivery from months to minutes, frictionlessly move workloads between data centers and the cloud and achieve 2...