Welcome!

News Feed Item

easyhome Ltd. Reports Results for the First Quarter Ended March 31, 2014

Record Revenues and Net Income Achieved in Q1 Earnings Per Share Increased by 42%

MISSISSAUGA, ONTARIO -- (Marketwired) -- 05/07/14 -- 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 first quarter ended March 31, 2014.

Revenue for the first quarter of 2014 increased to $60.3 million, an increase of 15.2% from $52.4 million in the first quarter of 2013. The growth was driven primarily by the expansion of easyfinancial and the related growth of its consumer loans receivable portfolio. Total same store sales growth in the quarter was 18.3%. Operating income for the quarter was $8.0 million, up $2.9 million or 57% compared to the first quarter of 2013. Net income for the quarter was $4.6 million, an increase of 59% compared with $2.9 million reported in the first quarter of 2013. Diluted earnings per share for the quarter, increased by 42% to $0.34 compared to $0.24 for the first quarter of 2013.

"Our results for the first quarter continue the trend of increasing revenues and growing net income," said David Ingram, easyhome's President and Chief Executive Officer. "Both easyhome Leasing and easyfinancial reported improved operating income. As a result, our adjusted operating income increased by 57%."

During the first quarter of 2014, the consumer loans receivable portfolio experienced growth of $12.8 million compared with growth of $4.0 million in the first quarter of 2013. The gross consumer loans receivable as at March 31, 2014 was $123.5 million compared with $74.7 million as at March 31, 2013, growing 65% over the preceding 12 months.

Other highlights for the first quarter of 2014 include:

easyfinancial Services


--  Revenue for easyfinancial increased by 69% for the first quarter of 2014
    compared to the first quarter of 2013.
--  Operating margin of 35.8% for the first quarter of 2014 was up from
    28.0% reported for the same period in 2013. Strong growth in the quarter
    coupled with improvements in consumer loan losses positively impacted
    margins.
--  During the quarter, easyfinancial opened 9 new stand-alone locations and
    one new kiosk. The Company plans to continue to open new locations and
    increase its marketing investment to support growth.

easyhome Leasing


--  Although revenue was generally unchanged compared to the first quarter
    of 2013, it was generated by a smaller and more efficient store network
    resulting in improved operating income.
--  easyhome Leasing achieved same store sales growth of 3.5% for the first
    quarter of 2014.
--  The operating margin of easyhome Leasing for the first quarter of 2014
    was 18.3%, up from 16.4% reported in the first quarter of 2013.

Overall


--  Return on equity improved from 11.0% in the first quarter of 2013 to
    13.4% in the current quarter.
--  Corporate costs were impacted by a $1.6 million increase in incentive
    compensation plan expenses.
--  Since the start of 2014, the Company has made progress on its strategic
    imperatives including establishing easymortages, engaging its first
    merchant partners in its indirect lending platform and continuing the
    development of its e-commerce platforms and credit adjudication
    strategies.

Outlook

David Ingram commented, "We are confident that our growth plans for easyfinancial, including our omni-channel strategy for the distribution of new loans, will enable us to achieve our loan book target of $160 - $170 million by the end of 2014. The new store schedule is on track for at least 35 locations this year and we have engaged our first merchant partners in our in-direct lending platform. This continued growth will enable easyfinancial to achieve its goal of becoming Canada's largest provider of consumer loans as an alternative to traditional banks and payday lenders."

Mr. Ingram continued, "Our leasing business also continues to show solid consumer demand and we are on track for continued strong results in the ensuing quarters. We remain committed to our strategic plan as previously outlined. The Company will focus on evolving our delivery channels to better meet the needs of our customers, expanding the size and scope of easyfinancial and executing with efficiency and effectiveness."

The Board of Directors has approved a quarterly dividend payment of $0.085 per share payable on July 11, 2014 to the holders of common shares of record as at the close of business on June 27, 2014.

About easyhome

As at May 7, 2014, easyhome Ltd. operated 236 easyhome leasing stores (including 9 consolidated franchise locations and 56 other franchise locations) and 129 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 www.easyhome.ca.

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 www.easyhome.ca 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.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(unaudited)
(expressed in thousands of Canadian dollars)
                                                        As at          As at
                                                    March 31,   December 31,
                                                         2014           2013
----------------------------------------------------------------------------

ASSETS
Cash                                                    5,329          2,329
Amounts receivable                                      7,274          7,206
Prepaid expenses                                        2,059          1,699
Consumer loans receivable                             116,164        103,936
Lease assets                                           64,934         68,453
Property and equipment                                 16,248         15,793
Deferred tax assets                                     5,410          3,997
Intangible assets                                      10,061          9,524
Goodwill                                               19,963         19,963
----------------------------------------------------------------------------
TOTAL ASSETS                                          247,442        232,900
----------------------------------------------------------------------------
----------------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Bank revolving credit facility                         22,129         23,496
Accounts payable and accrued liabilities               22,646         24,322
Income taxes payable                                    7,077          3,929
Dividends payable                                       1,131          1,130
Deferred lease inducements                              2,597          2,749
Unearned revenue                                        3,944          3,763
Term loan                                              47,910         37,878
----------------------------------------------------------------------------
Total Liabilities                                     107,434         97,267
----------------------------------------------------------------------------

Shareholders' Equity
Share capital                                          80,135         79,923
Contributed surplus                                     4,527          4,169
Accumulated other comprehensive income                    613            307
Retained earnings                                      54,733         51,234
----------------------------------------------------------------------------
Total Shareholders' Equity                            140,008        135,633
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY            247,442        232,900
----------------------------------------------------------------------------
----------------------------------------------------------------------------



easyhome Ltd.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(expressed in thousands of Canadian dollars except earnings per share)
                                                    Three months ended
                                              ------------------------------
                                                   March 31,      March 31,
                                                        2014           2013
----------------------------------------------------------------------------

REVENUE
Lease revenue                                         38,500         38,919
Interest income                                       12,789          7,867
Other                                                  9,045          5,603
----------------------------------------------------------------------------
                                                      60,334         52,389
----------------------------------------------------------------------------

EXPENSES BEFORE DEPRECIATION AND AMORTIZATION
Salaries and benefits                                 18,259         15,890
Stock based compensation                               1,547            904
Advertising and promotion                              1,629          1,775
Bad debts                                              4,207          3,146
Occupancy                                              6,923          6,720
Other                                                  6,028          5,598
----------------------------------------------------------------------------
                                                      38,593         34,033
----------------------------------------------------------------------------

DEPRECIATION AND AMORTIZATION
Depreciation of lease assets                          12,060         11,933
Depreciation of property and equipment                 1,146          1,108
Amortization of intangible assets                        480            294
Impairment, net                                           82            (62)
----------------------------------------------------------------------------
                                                      13,768         13,273
----------------------------------------------------------------------------
Total operating expenses                              52,361         47,306
----------------------------------------------------------------------------
Operating income                                       7,973          5,083
Finance costs                                          1,558          1,184
----------------------------------------------------------------------------
Income before income taxes                             6,415          3,899

Income tax expense (recovery)
  Current                                              3,199          1,552
  Deferred                                            (1,414)          (565)
----------------------------------------------------------------------------
                                                       1,785            987
----------------------------------------------------------------------------

Net income                                             4,630          2,912
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Basic earnings per share                                0.35           0.24
Diluted earnings per share                              0.34           0.24
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Contacts:
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
www.easyhome.ca

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
While some vendors scramble to create and sell you a fancy solution for monitoring your spanking new Amazon Lambdas, hear how you can do it on the cheap using just built-in Java APIs yourself. By exploiting a little-known fact that Lambdas aren’t exactly single threaded, you can effectively identify hot spots in your serverless code. In his session at 20th Cloud Expo, David Martin, Principal Product Owner at CA Technologies, will give a live demonstration and code walkthrough, showing how to o...
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...
"Peak 10 is a national cloud data center solutions managed services provider, and part of that is disaster recovery. We see a growing trend in the industry where companies are coming to us looking for assistance in their DR strategy," stated Andrew Cole, Director of Solutions Engineering at Peak 10, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Analytic. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in compute, storage and networking technologies, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/...
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
Judith Hurwitz is president and CEO of Hurwitz & Associates, a Needham, Mass., research and consulting firm focused on emerging technology, including big data, cognitive computing and governance. She is co-author of the book Cognitive Computing and Big Data Analytics, published in 2015. Her Cloud Expo session, "What Is the Business Imperative for Cognitive Computing?" is scheduled for Wednesday, June 8, at 8:40 a.m. In it, she puts cognitive computing into perspective with its value to the busin...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
Everyone wants to use containers, but monitoring containers is hard. New ephemeral architecture introduces new challenges in how monitoring tools need to monitor and visualize containers, so your team can make sense of everything. In his session at @DevOpsSummit, David Gildeh, co-founder and CEO of Outlyer, will go through the challenges and show there is light at the end of the tunnel if you use the right tools and understand what you need to be monitoring to successfully use containers in your...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.