Easyhome revenues jump 9.9% in second quarter
Michael J. Knell -- Furniture Today, August 14, 2013
MISSISSAUGA, Ontario — Easyhome, Canada's largest merchandise leasing company, said a 9.9% uptick in revenue for the second quarter, driven primarily by its Easyfinancial short term consumer loan portfolio, set a new record.
Revenues of C$53.8 million were up from C$48.9 million in the second quarter of 2012.
At the store level, including Easyfinancial, same-store revenue growth for the quarter was 16.9% compared with growth of 6.4% for the second quarter of 2012.
The company said Easyfinancial revenues increased 51% to C$13.3 million from C$8.8 million for the same period last year. The improvement is a result of an increase in the consumer loans receivables portfolio from C$55.8 million to C$83.9 million.
The company's merchandise leasing operations recorded a modest revenue increase to C$40.0 million as same store sales gained 9.8%.
David Ingram, Easyhome's president and CEO, noted leasing revenues were negatively impacted by the store closures - the count dropped from 204 to 186 - but said the decline was more than offset by the migration of their lease portfolios to nearby locations, and the improved execution resulting from last year's restructuring program.
Net income for the period was C$3.1 million or 26 Canadian cents per share, compared to C$2.0 million or 17 cents per share for the same period of 2012 - a gain of 54%.
"Easyhome delivered record revenues and its best second quarter financial performance in the company's history," Ingram said in a statement. "Strong revenue and earnings gains were driven by the continued growth of Easyfinancial services and by the improved results of our leasing business which benefited from the restructuring activities and changes to our retail footprint which occurred last year."
He also reported Easyhome increased its term loan facility for Easyfinancial to C$50 million during the second quarter and negotiated a reduction in its interest rate.
"The additional financing will allow Easyfinancial Services to grow unencumbered and build upon its leadership position as an alternative provider of term financing to consumers," he said, adding it "will lead to sustained growth of both revenue and earnings in future quarters."
For the six months ending June 30, Easyhome recorded revenues of C$106.2 million, up 7.6% from the $98.7 million in the first half of 2012.
Net income was C$6 million or 50 cents per share, a 29.5% gain over the C$4.7 million or 39 cents per share for the comparable period last year.
As of July 31, Easyhome operated 186 Easyhome leasing stores (including nine consolidated franchise locations) and 108 Easyfinancial locations in Canada as well as 50 franchise stores, mostly in the United States.