MISSISAUGA - GoEasy, parent of EasyHome and EasyFinancial,  recently reported record results for the first quarter of 2019.

GoEasy, which offers leasing and lending services in the alternative financial services market and aims to bridge the gap between traditional financial institutions and payday loan companies, says its loan portfolio increased from $602 million to $879 million, up 46%.

The company also said revenue Increased from $115 million to $140 million, up 22%; net income Increased from $11 million to $18 million, up 65% and quarterly earnings per share increased from $0.77 to $1.18, up 53%.

During the quarter, the company generated $219 million of total loan originations, up 8 per cent from the $202 million in the first quarter of 2018.

GoEasy says the net charge-off rate remained consistent with the fourth quarter of 2018 at 13.1%, up from 12.4% in the first quarter of 2018 and within the company’s guided range of 11.5% to 13.5%for 2019.

The company says growing revenues and improved operating leverage led to record margins, net income, earnings per share and return on equity. Operating income grew to $38.8 million, up 56%from $24.9 million in the first quarter of 2018.

The company says it’s growing in popularity amongst consumers looking for a financial alternative, as the total application volume increased by 11 per cent. goeasy also says revenue grew to $105 million, up 30%, and its secured loan portfolio grew to $68.4 million, up from $19.7 million.

Demonstrating growth in popularity, the company says 63% of net loan advances in the quarter were issued to new customers, up from 58%. Brand awareness sits at 82 per cent, up from 77%, and the average loan book per branch improved to $3.1 million, an increase of 41%.

The delinquency rate on the final Saturday of the quarter was 4.4%, consistent with the 4.5%reported in the same period of 2018.

The company boasts an operating income of $41.4 million and an operating margin of 39.5%, an increase from the 36.7% reported in the first quarter of 2018. The company says revenue grew to $35.2 million, up 2% from $34.4 million, while same store revenue increased 4.7 per cent, compared to 3.6%.

The consumer lending portfolio within EasyHome stores increased to $24.4 million, up from $8.5 million while revenue from consumer lending increased to $3.4 million, up from $1.1 million.

The company appears to be enjoying steady growth, as it experienced its 36th consecutive quarter of same store sales growth and 71st consecutive quarter of positive net income.

GoEasy says total assets were $1.1 billion as of March 31, 2019, an increase of 46% from $755 million as at March 31, 2018, driven by the growth in the consumer loan portfolio.

The company completed an amendment to its pre-existing senior secured revolving credit facility provided by a syndicate of banks. The amendment extended the maturity date to February 2022 (from October 2020) and increased the maximum principal amount available from $174.5 million to $189.5 million.

Based on the current bankers acceptance rate of approximately 1.86% and Prime Rate of 3.95% as of May 1, 2019, the interest rate on the principal amount drawn would be 5.11% or 5.95%, at the option of the company.

Based on the cash on hand at the end of the quarter and the borrowing capacity under the company’s amended revolving credit facility, the company had approximately $265 million in funding capacity, which will allow it to achieve its targets for the growth of its consumer loan portfolio through to the third quarter of 2020.

TORONTO- Leon’s Furniture Limited, this country’s largest furniture retailer, appears optimistic after emerging from the first quarter of 2019 on solid financial footing.

The brand says revenue in the quarter was effectively at par at $499.7 million compared to $500.7 million in the prior year’s first quarter, but that gross profit margin improved by 46 base points to 43.26 per cent from 42.80 per cent in the first quarter of 2018, with a favourable product mix of furniture sales.

The company says adjusted diluted earnings per share grew by 21.4 per cent to $0.17 year-over-year from $0.14, while adjusted earnings before interest, tax, depreciation and amortization increased 90.7% to $50.7 million from $26.6 million. Adjusted earnings increased by 8.1% to $28.7 million.

In the first quarter of 2019, The Brick division of the company opened two corporate stores.

“I am very proud of all the Company’s associates across the country for generating solid bottom line results in what was a challenging quarter in our industry. In Q1, we invested in targeted and innovative marketing initiatives from which we expect to receive further benefits throughout the year,” Edward Leon, President and Chief Executive Officer of LFL Group, said in a statement.

“2019 and 2020 will be exciting years for our Company, with plans to continue to leverage our solid online and national bricks & mortar footprint into results for shareholders, while strategically growing our presence on both Canadian coasts.”

Leon says the company’s e-commerce retail channel continues to generate a double-digit growth rate and credits its success to the brand’s internal development team and the “rapid and successful platform shift” Leon’s initiated and completed in 2018. Leon says the platform shift enabled the company to focus on value-add customization, which drove traffic growth and increased customer satisfaction.

The company is also expanding Leon’s banner in the BC market by introducing a smaller-scale, tech-forward prototype store in Coquitlam, which is scheduled to open in the second half of the year.

More expansion is on the way, with plans to expand the presence of The Brick division in the Maritimes with three new full-line corporate stores over the next two years.

The company says that selling, general and administrative (SG&A) expenses as a percentage of revenue in the current quarter were relatively flat as compared to the prior year’s first quarter when normalized for the impact of IFRS 16 in the current quarter. The implementation of IFRS 16 in the quarter resulted in added depreciation and amortization expense which was approximately $522,000 greater than the reduction in rent expense. Normalized for these impacts, the company’s SG&A as a percentage of revenue in the current quarter was 39.36% as compared to 39.32% in the prior year’s quarter.

“This was due to effectively managing payroll costs and digital commerce expenses while at the same time increasing advertising spend in the current quarter that was targeted to drive customers to the Company’s websites and retail stores,” the company said in a statement.

The company says it’s optimistic about the company’s future going forward.

“Despite the uncertainty over certain key economic indicators, we believe that the overall economy remains relatively strong. Although it is difficult to gauge future consumer confidence and what impact it may have on retail, we remain confident that our sales and profitability will increase. Given the Company’s strong financial position, our principal objective is to increase market share and profitability. We remain focused on our commitment to continuously invest in digital innovation that will drive more customers to both our online eCommerce presence and our 302 physical locations across Canada.”

SCARBOROUGH, Ontario- Sunpan, a transitional and contemporary furniture resource, recently announced the launch of Sunpan Hospitality.

“After years of working with interior design firms planning hospitality projects, it was a natural step for us to enhance this program by launching Sunpan Hospitality,” said Marketing Director, Katherine Kalen.

“Through this program, we are assuring the hospitality trade that we have the required offering and resources suitable for servicing non-residential environments.”

Sunpan Hospitality is designed to service non-residential environments such as restaurants, hotels, lounges, office and reception areas, and other commercial establishments through four of its key programs: Stocked, Modified, Specialty and Bespoke. The company also offers customization of covers, finishes, material, shape, and size.

Sunpan says it offers customers a diverse selection of high-end looks at affordable prices.

“Our products are thoughtfully designed and crafted with renowned international designers to create modern and transitional styles across hard goods, dining, upholstery and art,” the company said in a news release.

The company says an initiative known as a “Customer’s Own Material” process will also be available through special order on select Sunpan designs.

In the coming weeks and as part of an entire site update, sunpan.com will see major enhancements including wide-ranging tools and information on the customization and quotation processes.

LONDON - An industry veteran recently announced that he will be retiring this summer.

In a statement, Zucora Home said its long-time sales executive, Michael Foulds, will retire at the end of June.

Foulds has dedicated 63 years of service to the industry.

“I have been very fortunate to have been able to spend so many years serving retailers throughout the home furnishings industry,” said Foulds. “Many of the people that I’ve had the pleasure of working with have become such great friends.”

Foulds began his sales career in 1956 with his first position as a sales agent for Pride of Paris Drapery Fabrics (formerly Holland Traders) selling drapery fabric and hardware to customers in the Maritimes, Newfoundland, Ontario, Quebec, and Saskatchewan.

In 1963, Foulds joined Sklar Furniture Company (later renamed as Sklar-Peppler) in London, Ontario. He represented Sklar-Pepplar for 47 years, working as an export manager and opening accounts in Bolivia, the Middle East, and Jordan.

Foulds increased his representation with various product lines that included Leather Trend, Eurodesign, Crawford and Zucora Home (formerly Magi Seal). In 2010, Foulds decided to exclusively represent Zucora Home.

“Mike is a true people-person,” said Brad Geddes, president and CEO of Zucora Home. “Not only is he a real gentleman, but Mike possesses incredible integrity, positive enthusiasm and boundless energy,” said Geddes.  “I’ve always admired Mike for his willingness to share his expertise. He has been a great mentor for me personally and for so many in our industry,” said Geddes. “I know his professional and wise counsel will be missed!”

In his earlier years, Foulds enjoyed riding his motorcycle, tennis and downhill skiing. He later discovered golf and gardening. Both of which keep him active.

Foulds plans to enjoy his retirement by spending more time with his wife, children and grandchildren.