MISSISSAUGA, ONTARIO - (Marketwired - May 7, 2014) - 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:
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.
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.
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.
|INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION|
|(expressed in thousands of Canadian dollars)|
|As at||As at|
|March 31,||December 31,|
|Consumer loans receivable||116,164||103,936|
|Property and equipment||16,248||15,793|
|Deferred tax assets||5,410||3,997|
|LIABILITIES AND SHAREHOLDERS' EQUITY|
|Bank revolving credit facility||22,129||23,496|
|Accounts payable and accrued liabilities||22,646||24,322|
|Income taxes payable||7,077||3,929|
|Deferred lease inducements||2,597||2,749|
|Accumulated other comprehensive income||613||307|
|Total Shareholders' Equity||140,008||135,633|
|TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY||247,442||232,900|
|INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME|
|(expressed in thousands of Canadian dollars except earnings per share)|
|Three months ended|
|March 31,||March 31,|
|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|
|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|
|Total operating expenses||52,361||47,306|
|Income before income taxes||6,415||3,899|
|Income tax expense (recovery)|
|Basic earnings per share||0.35||0.24|
|Diluted earnings per share||0.34||0.24|
President & Chief Executive Officer
Senior Vice President and Chief Financial Officer