EasyHome furniture and appliance leasing revenue falls in 2021
MISSISSAUGA, Ontario – While overall revenue grew for EasyHome in 2021, this country’s largest furniture, appliance and electronics leasing merchant suffered slight declines in its core business both in terms of sales and the number of lease agreements signed with Canadian customers. Despite this, parent company GoEasy reported record revenue for both the fourth quarter and entire 2021 year.
The publicly held GoEasy recently reported overall revenue for the three months ending December 31, 2021, was $234.4 million, 35.3% higher than the $173.2 million for the same period of 2020.
Net income was $50.0 million or $2.90 per diluted share, compared to $48.9 million or $3.14 per diluted share – a decline of 7.6% on a per share basis.
The company attributed the decline to a variety of factors including a slide in the operating margins of both EasyHome and EasyFinancial – its far larger non-prime consumer financing segment – as well as some non-recurring costs associated with last year’s acquisition of LendCare.
According to company reports, EasyHome revenue for the fourth quarter totaled $38.4 million, a gain of 4.7% over the $36.7 million rung-up for the same period in 2020. Operating income was $8.5 million, a 2.5% slide from $8.7 million.
More tellingly, revenue generated by it core business of leasing furniture, mattresses, appliances and electronics – including computers – fell 3.1% to $27.7 million from the prior year’s $28.6 million.
“The decrease was due to lower lease agreements, partially offset by an increase in the average leasing rate, due in part to changes in product mix, and selected pricing adjustments,” the company explained.
EasyHome’s revenue uptick was driven by the growth of consumer lending within its 158 stores across the country, which gained 35.5% in the fourth quarter. This gave the brick-and-mortar leasing specialist a same store revenue growth of 5.6% – up from 4.4% for the comparable period.
For the 12 months also ending December 31, 2021, EasyHome revenue totaled $150.4 million, a 5.1% gain from the $143.0 million generated for the prior year. Operating income climbed 18.7% to $36.9 million from $31.1 million.
Sales by its core leasing business totaled $112.4 million, down slightly from 2020’s $112.8 million. The company attributed the decline to a smaller lease portfolio. However, has a percentage of total revenue, leasing’s share fell from 78.9% in 2020 to 74.9% last year.
Meanwhile, EasyHome’s own consumer loan business grew 33.2% last year.
At the end of 2021, EasyHome had some 79,776 lease agreements with Canadian consumers generating a monthly average payment of $103. In 2020, they had 85,946 agreements generating an average monthly payment of $98.
Product mix didn’t change all that much year-over-year with furniture (including mattresses) – its largest category – falling from 42.8% in 2020 to 41.3% last year. Electronics, mainly televisions and home theatre systems, accounted for 32.4% of revenue, up slightly from 31.5%.
Also gaining ground were appliances whose share of revenue rose to 13.9% last year from 13.6% the year prior while computers also saw slight gains.
For the full year of 2021, GoEasy produced record revenues of $827 million, up 27%, compared with $653 million in 2020.
Net income for the full year of 2021 was $245 million or $14.62 per diluted share, compared to $137 million or $8.76 per diluted share – and increase of 67% on a per share basis.
Last September, GoEasy was named to the TSX30 – a list of the fastest growing stock price performers in the country. The company was ranked seventh with a three-year growth rate of 327%. As of December 31, 2021, GoEasy shares were trading for $179.27, virtually double the $96.65 they were pegged at on the same day in 2020.