Easyhome's profits fall 35% in fourth quarter
Rent-to-own chain's costs rise with Insta-Rent acquisition
Furniture Today Staff -- Furniture Today, March 6, 2009
MISSISSAUGA, ONTARIO — Easyhome, Canada's largest chain of rent-to-own stores, said fourth-quarter profits fell more than 35% due to higher operating costs and expenses related to last year's acquisition of Insta-Rent.
The company reported net income of C$1.77 million, or 17 cents per share for the quarter ended Dec. 31. That compares with C$2.73 million, or 26 cents per share, in the fourth quarter of 2007.
Revenues for the most recent quarter were C$44.1 million, a 13.5% jump over the fourth quarter of 2007. More than half the increase was attributed to the Insta-Rent acquisition, which was completed in the third quarter.
"Despite the challenges of 2008, we are enthused by the benefits that our new initiatives will provide our growing organization," said David Ingram, president and CEO. "We anticipate solid sequential improvement to our first-quarter results as the operations team executes tighter cost management and improved cash collections."
For the year ended Dec. 31, revenues were C$162.5 million, a 13.1% increase from 2007.
Last year's net income was C$9 million, or 84 cents per share. That's a 23.3% drop from C$11.7 million, or C$1.11 per share, in 2007.
At the end of last year, Easyhome had 229 stores, including 14 in the United States.
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Easyhome 4Q profits fall 35%
Mar 23, 2009
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