GoEasy continues to grow
MISSISSAUGA, Ontario – Although segment revenue dropped, the publicly-held GoEasy made some improvements as a big ticket retailer during the third quarter but its efforts as a lender of relatively small consumer loans continued to drive its overall performance to record heights.
The company reported revenue for the three months ending September 30, 2017, was $103.7 million, jumping18.1% from the $87.8 million for the comparable period in 2016. Net earnings were $11.6 million or 81 cents per share, compared to $4.9 million or 36 cents per share – a rocket-fuelled leap of 125% on a per share basis.
Same store sales grew 21.3% during the third quarter, building on 15.4% for the same period last year.
For Easyhome – its big ticket home merchandising leasing segment – third quarter revenue was $34.0 million, a slide of 3.3% from last year’s $35.1 million. The company attributed the decline primarily to store closures over the past 15 months, which reduced store transactions by about $1.5 million. During the quarter, the company closed two outlets, bringing the Easyhome network down to 171 stores.
Management noted excluding those transactions, revenue across the store network was up $300,000, producing a same store sales growth of 3.0% for the period. The segment’s operating margin also grew to 16.4%, from 14.4% a year ago.
Meanwhile, the Easyfinancial segment generated revenues of $60.7 million for the third quarter, up 32.4% from $52.6 million a year ago.
For the nine months also ending September 30, 2017, GoEasy’s total revenue was $296.6 million, gaining 15.8% over last year’s $256.2 million. Net earnings were $30.8 million or $2.17 per share, company to $22.7 million or $1.63 per share – up 31.1% on a per share basis. Overall same store sales were up 18.7%.
Easyhome revenue was $103.2 million, down 4.2% from $108.1 million for the comparable period. Same store sales were up 1.0%. Since the beginning of the year, five Easyhome stores have been closed.
Easyfinancial revenue was up 30.6% to $193.4 million, from $148.1 million. To date this year, the segment has added 12 locations to its network.
GoEasy also announced it has secured a new credit facility of US$325 million which will be used to not only retire its existing credit facilities but to aid in financing future growth, particularly for Easyfinancial.
Management also updated its forecasts for Easyfinancial, saying it intends to add as many as 32 locations to that network this year, followed by as many as 30 in 2018 and 20 in each of the following years. It is also planning to grow Easyfinancial’s consumer loans receivable portfolio to as much as $750 million next year and to reach $1.1 billion in 2020. The target for this year is $520 million.
“The significant progress made by GoEasy over the past few years has positioned the company to be the leading non‐prime lender for everyday Canadians. We remain unwavering in our commitment to provide our customers with the opportunity to achieve better financial outcomes and the ability to graduate towards prime credit,” company president and chief executive officer David Ingram said in a statement.
“We are better positioned than ever before to capture a greater share of the $165 billion non‐prime consumer credit market,” he continued.