EasyHome leasing revenue falls in second quarter, first half
MISSISSAUGA, Ontario – EasyHome’s core furniture, appliance and electronics leasing business continued to lose ground in the second quarter and first half of 2022 as parent company GoEasy fortunes as this country’s leading lender to sub-prime consumers soared ever higher.
GoEasy said total revenue for the three months ended June 30, 2022, was $251.7 million, up 24.4% from the $202.4 million for the same period last year. Overall same store sales improved 16.8%.
Net earnings were $38.3 million or $2.32 per diluted share, compared to $19.5 million or $1.16 per diluted share – a 100% uptick on a per share basis.
For the six months also ended June 30, 2022, revenue was $483.8 million, up 29.9% from the comparable period’s $372.5 million. Combined same store sales – for both EasyFinancial and EasyHome – were up 15.1%.
Net earnings were $64.4 million or $3.86 per diluted share, compared to $131.4 million or $8.10 per diluted share – a downturn of 52.3% on a per share basis. The decline was attributed to a number of factors, such as GoEasy’s acquisition of LendCare and entry into the automotive loan segment.
EasyHome, which remains this country’s largest furniture, appliance and electronics lease-to-own specialist, saw its second quarter revenue remain essentially unchanged at $37.5 million although same store sales climbed 2.8%.
However, its core merchandise leasing business fell to $25.9 million from $28.3 million – a 9.2% decline on a year-over-year basis. The rest of EasyHome’s revenue comes from its own consumer loans business as well as commissions earned on the sales of extended warranties and similar products.
For the first six months of the year, total EasyHome revenue improved slightly from $74.3 million for the first half of 2021 to $75.1 million this year. Merchandising leasing revenue came in at $56.2 million, down 6.9% from last year’s $60.4 million.
Merchandise leasing’s share of EasyHome’s overall sales mix fell to 69.1% from 75.7%. The number of lease agreements in force at the end of June fell from 82,917 last year to 73,393 although the average lease payment increased about 3% over that period.
The merchandise leasing mix hasn’t varied that much year-over-year with furniture accounting for 41.4% of revenue at the end of June, down slightly from 41.9% a year ago. Electronics accounted for 32.4%, up from the comparable 31.7%. Appliances also gained ground with a 14.5% share of revenue, up from 14.1%, which was offset by a slight decrease in computers, a category accounting for 11.7% of revenue, down from 12.3%.
At the end of June 2022, GoEasy operated some 154 EasyHome stores across the country, including 34 franchise locations. The company closed four corporate stores during the first half of the year.