Easyhome revenues up 7.3% in 2Q
By Furniture Today Staff -- Furniture Today, September 7, 2003
Edmonton, Alberta — Easyhome, Canada's largest rent-to-own home furnishings retailer, said revenues in the second quarter were up 7.3% to C$19.3 million, largely due to an increased customer base.
The former RTO Enterprises had same-store sales growth of 4% in the quarter, off from 6% in the comparable period last year. Net earnings, after preferred dividends, declined 38.9% to C$407,000 from C$666,000 in last year's second quarter.
The earnings drop was attributed to C$544,000 in non-recurring charges related to the transition to the easyhome brand, which was partially offset by a C$143,000 one-time gain on the sale of land. Without the one-time items, the company said net earnings before preferred dividends would have been up 11.4% to C$742,000.
For the six months, revenues were up 7.7% to C$38.6 million, and net earnings, including preferred dividends, slid 9.1% to C$1.1 million.
"We are clearly on the right track to improve profitability," said David Ingram, president and chief executive officer. "We have now posted 21 months of consecutive comparable-store revenue growth, demonstrating the appeal of our concept and our ability to target customers effectively."
The major project during the quarter was the changing of 126 of 130 stores to the new easyhome brand, which took the company from six retail banners to one national brand.
"The easyhome rebranding was an enormous project, probably the most significant initiative in the company's history," said Ingram. "We completed the transition on time and on budget. Operating under the easyhome brand will allow us to grow the business and capitalize on the under-penetration of the rent-to-own industry in Canada. Easyhome is the only national brand, and is by far the largest RTO chain in the country."
| Easyhome(a) | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 6/30 | 2003 | 2002 | Change |
| (a) In Canadian dollars. (b) Includes non-rental revenues of C$3.1 million in the 2003 quarter, C$2.7 million in the 2002 quarter, C$6.1 million in the 2003 six months and C$5.2 million in the 2002 six months. (c) Revenues minus salaries and benefits, selling, general and administrative expenses, occupancy costs, automotive and travel expenses and amortization of rental assets. (d) After preferred dividends of C$75,000 in the 2003 quarter and C$150,000 in the 2003 six months. |
|||
| Revenues (b) | C$19,309,000 | C$18,002,000 | 7.3% |
| Operating income (c) | 1,982,000 | 1,726,000 | 14.8% |
| Net income | (d)407,000 | 666,000 | (38.9%) |
| Earnings per share | 0.09 | 0.14 | (35.7%) |
| 6 months ended 6/30 | 2003 | 2002 | Change |
| Revenues (b) | C$38,581,000 | C$35,820,000 | 7.7% |
| Operating income (c) | 3,982,000 | 3,392,000 | 17.4% |
| Net income | (d)1,100,000 | 1,210,000 | (9.1%) |
| Earnings per share | 0.23 | 0.25 | (8.0%) |
-
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