EasyHome 2Q sales up 7.2%
MISSISSAUGA, Ontario – EasyHome, this country’s largest rent-to-own furniture and appliance merchant, reported strong revenue growth for the both the second quarter and first half of 2021, keeping in step with its parent company’s short-term consumer loan segment.
GoEasy said total revenue for the three months ending June 30, 2021, was $202.4 million – a 34.3% uptick from the $150.7 million reported for the first half of 2020. Overall same store sales skyrocketed to 20.2%, compared to last year’s 1.1%.
Most of the gain was attributed to its recent acquisition of LendCare Holdings, a Canadian point-of-sale consumer finance and technology company, a Toronto-based firm specializing in providing services in the powersports, auto, retail, home improvement and health sectors.
EasyFinancial, the company’s consumer loan segment reported revenues of $164.9 million, up 42.5% from last year’s $115.7 million.
Meanwhile, EasyHome revenues of $37.5 million were up 7.2% from $34.9 million as same store sales gained 7.2% and operating margins advanced 16.4% on a year-over-year basis. Its potential monthly lease revenue edged up 1.4%.
Net income for the second quarter was $19.5 million or $1.16 per share, compared to $32.5 million or $2.11 per share – down 45.0% on a per share basis. The company attributed the decline to the costs of acquiring LendCare and other non-recurring factors.
For the six months also ending June 30, 2021, GoEasy had total revenues of $372.5 million, advancing 17.2% over the $317.9 million recorded for the same period last year. Total same store sales gained 10.4%.
EasyFinancial’s contribution was $298.2 million, up 20.5% from $247.5 million for the comparable period.
EasyHome revenue for the six months was $74.3 million, up 5.6% from last year’s $70.4 million. Same store sales doubled over the comparable period at 6.4% as operating margins climbed 24.7% from 20.6%.
It should be noted that EasyHome’s share of GoEasy’s total revenue was 19.9% during the first six months of 2021, down form 22.1% for the same period last year.
Net income for the first half was $131.4 million or $8.10 per share, up from $54.5 million or $3.51 per share – a gain of 130.8% on a per share basis.
According to company reports, at the end of June 2021, EasyHome had signed some 82,917 lease agreements with a monthly average payment of $100.36. While the number of agreements fell from 85,576 a year ago, the payment was up from $95.87 – an uptick of 4.7%.
The company also reported furniture remains its single largest leasing product category at 41.9%, although that’s down slightly from 44.0% last year. Electronics (including televisions) account for 31.7% of lease agreements, followed by appliances at 14.1% and computers at 12.3%.
At the end of June 2021, GoEasy operated 158 stores under the EasyHome banner, including 34 franchise locations. It also operated 276 EasyFinancial locations.