Acquisition boosts Easyhome sale 9.4% in quarter
But profits fall 45% as company upgrades computers
Larry Thomas -- Furniture Today, November 12, 2008
MISSISSAUGA, Ontario — Easyhome, Canada's largest furniture and appliance rent-to-own operator, said third-quarter sales rose 9.4% as the company benefited from its recent acquisition of competitor Insta-Rent.
Profits, however, tumbled more than 45% due largely to one-time expenses related to the acquisition and the installation of a new computer system.
"Our business strategy is solid, and with improved technology and the acquisition of Insta-Rent, we are better positioned than ever to grow our business," said David Ingram, president and CEO. "In 2009, we will shift our focus to operational excellence."
The company acquired Insta-Rent in September, closed nearly all of its 50 locations and consolidated the business into nearby Easyhome stores.
Revenues for the quarter ended Sept. 30 were C$38.9 million, compared with C$35.5 million in last year's third quarter. Same-store sales grew 4.9%.
Net income totaled C$1.5 million or 14 cents per share. That's down from C$ 2.7 million or 26 cents per share in the comparable period last year.
For the nine months ended Sept. 30, revenues rose 12.9% to C$118.4 million. Net income fell 19.7% to C$7.2 million or 68 cents per share.
As of Sept. 30, Easyhome had 213 stores in Canada and nine in the United States.
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Insta-Rent buy lifts Easyhome 3Q revenue 9.4%
Nov 23, 2008
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