Easyhome 2Q revenues rise 20.7%, net income doubles
Canadian RTO leader reports first 2 U.S. stores doing ‘very well’
Michael J. Knell -- Furniture Today, August 6, 2007
EDMONTON, Alberta — Easyhome, this country’s largest rent-to-own merchant, said second-quarter revenues shot up 20.7% to C$35 million, and net income doubled to C$2.8 million, or 26 Canadian cents per share.
Same-store sales advanced 8.6% in the quarter, but the company reported a loss of C$600,000 from stores open less than 12 months, and losses in its financial services and U.S. divisions totaling C$300,000.
Easyhome has opened its first two U.S. stores, in western New York state. The company opened a total of eight stores and one financial services kiosk during the latest quarter.
For the six months, revenues came to C$69.4 million, a gain of 20.5% over the C$57.5 million generated in last year’s first half. Net income was C$6.2 million or 59 cents per Canadian share, compared to C$3.8 million, or 36 cents per share, last year. Same-store revenue growth was 9.8% in the first half, which also saw the company open a total of 12 stores and four financial services kiosks.
“Our performance, once again, demonstrates the strength of our core merchandise leasing business,” said President and CEO David Ingram. “We experienced growth in customers, a higher customer spend in the quarter, and a lease portfolio that grew C$282,000 during the quarter. All of our four major product categories produced comparable revenue gains, including electronics, which improved 18% compared to 5% at the same time last year.”
He said Easyhome will continue to push forward with its growth strategy, which is on target to meet earlier guidance of 15% to 18% revenue growth, 5% to 7% same-store sales growth and 20 to 24 new stores in 2007.
“We are pleased with our momentum entering the second half,” Ingram said.
Chairman Donald K. Johnson said, “We believe that Easyhome is well positioned for above-average earnings and dividend growth for the next few years…. We are excited about the U.S. expansion strategy, having just opened our first two corporate stores in New York state, which are performing very well.
“Our entry into the U.S. market provides additional growth potential while limiting concerns over financial risk, since we expect a significant portion of our U.S. growth will come from franchised stores modeled on the two corporate stores we’ve already opened,”
Johnson said.
At the end of the second quarter, Easyhome operated 197 corporate stores and one licensed store in Canada, as well as the two U.S. stores.
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Easyhome profits double
Aug 12, 2007
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