Easyhome 3Q revenues up 14%, profits soar 243.6%
By Michael J. Knell -- Furniture Today, December 5, 2004
Edmonton, Alberta — Easyhome, Canada's largest rent-to-own furniture and bedding merchant, said third-quarter revenues increased 14% from a year earlier to C$22 million.
Net income took a rocket-fueled leap, more than tripling to C$4.1 million, or 61 cents per share, from C$1.2 million, or 23 cents per share, in the 2003 third quarter.
President and CEO David Ingram told financial analysts that new customers accounted for 76% of the growth of the company, formerly known as Rent-To-Own Enterprises.
Easyhome has achieved 36 consecutive months of year-over-year revenue growth, he said.
Same-store revenues were up 8.7% in the latest quarter.
For the nine months, revenues of C$64.5 million were up 11.9% from last year, and net earnings of C$7 million were almost three times the C$2.4 million profit in the same period of 2003. Same-store revenues grew 9.3%.
"Easyhome's focus on growth, product expansion, targeted marketing, disciplined cost containment and outstanding store execution continues to drive our performance," Ingram said. "For the sixth consecutive quarter we have increased our net customer count, which was 10% higher at the end of Sept. 2004 compared to a year ago."
Easyhome opened six stores in the third quarter for a total of 12 new stores to date in 2004. Ingram said two more will open this year, and as many as 22 will be added in 2005 — almost all of them in small markets throughout Canada.
"Our growth has been disciplined at both the store and corporate levels," he said. "Our carefully planned new store expansion program is generating new stores that are providing revenue and profit contributions ahead of schedule. This, combined with strong same-store revenue growth, has led to our strong earnings growth despite the costs associated with new store openings."
Ingram said he anticipates growth will continue for the rest of this year.
"We are using our growing cash flow to invest in the business and strengthen our balance sheet to allow for sustainable growth opportunities. To this end, we are purchasing inventory in anticipation of continued momentum in same-store growth for the fourth quarter," he said.
| Easyhome(a) | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 9/30 | 2004 | 2003 | Change |
| (a) In Canadian dollars. (b) Includes non-rental revenues of C$3.6 million in the 2004 quarter, C$3 million in the 2003 quarter, C$10.2 million in the 2004 nine months and C$8.8 million in the 2003 nine months. (c) Revenues minus salaries and benefits, selling, general and administrative expenses, occupancy costs, automotive and travel expenses and amortization of rental assets. (d) Includes a C$1.2 million income tax benefit. | |||
| Revenues (b) | C$22,036,000 | C$19,335,000 | 14.0% |
| Operating income (c) | 3,320,000 | 2,598,000 | 27.8% |
| Net income | (d)4,116,000 | 1,198,000 | 243.6% |
| Earnings per share | 0.61 | 0.23 | 165.2% |
| 9 months ended 9/30 | 2004 | 2003 | Change |
| Revenues (b) | C$64,536,000 | C$57,658,000 | 11.9% |
| Operating income (c) | 8,778,000 | 6,547,000 | 34.1% |
| Net income | 7,024,000 | 2,426,000 | 189.5% |
| Earnings per share | 1.05 | 0.45 | 133.3% |
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Easyhome 3Q revenues up 14%, profits soar 243.6%
Dec 6, 2004
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