Easyhome revenues up 21.7% in quarter
By Michael J. Knell -- Furniture Today, March 2, 2008
Edmonton, Alberta — Easyhome, Canada's largest rent-to-own merchant, reported a 7.2% earnings gain in the fourth quarter as revenues jumped 21.7%.
Same-store revenue grew 13.5% from the comparable period a year earlier and the company also opened seven stores in the latest quarter.
Net income for the period came to C$2.7 million or 26 cents a share on revenues of C$38.8 million. Earnings in the most recent quarter were reduced by a C$400,000 future tax expense related to reductions in future federal income tax rates.
For the full year, revenues rose 20.2% to C$143.7 million, with same-store business up 9.1% from the previous year. The merchant opened 22 stores and four financial services kiosks. Net income of C$11.7 million or C$1.13 per share in 2007 was up 30.1% from 2006.
By category, furniture was Easyhome's growth leader last year as revenue climbed 22.8%. Personal computers were up 16%, major appliances gained 5.7% and electronics improved 5%.
Easyhome President and CEO David Ingram told analysts that Easyhome is targeting revenue growth of 15% to 18% in 2008, with same-store revenue rising 5.5% and 7.5%. He said the company projects to open between 28 and 32 stores in Canada and the United States, including at least 15 in New York State.
He said Easyhome is positioned to benefit from any downturn in the economy.
"Our experience is that the merchandise leasing business is less sensitive to economic cycles than the typical retailer," Ingram said. He added, "While it would be difficult to assess the impact of a slowdown on the company, we would expect to gain more customers who seek to maintain their lifestyle in a time of tight credit."
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