GoEasy grows again, but EasyHome revenue slids
MISSISSAUGA, Ontario – A revenue drop for EasyHome didn’t make much of a dent in the overall third quarter sales and earnings performance for GoEasy as Easyfinancial saw its top line advance almost $27 million as its consumer loans receivable struck the $1 billion mark for the first time.
Revenue for the three months ending 30 September 2019 was $156.1 million, 20.2% higher than the $129.9 million for the same quarter of 2018. Overall same store sales growth for the quarter was 20.4% and the company noted the advance was driven by the growth of consumer lending.
The consumer lending arm, EasyFinancial, contributed revenue of $122.3 million, a year-over-year gain of 27.8% over the comparable period’s $95.7 million.
Meanwhile, EasyHome – a national chain of lease-to-own furniture, mattress, appliance and electronics stores – had revenue of $33.9 million, a 1.1% decline from the $34.3 million generated in the third quarter of 2018. However, same store sales climbed 2.4%.
During the quarter, EasyHome acquired six of the Canadian stores operated by the U.S. based rent-to-own merchant Aaron’s, absorbing them into its own network.
In a new strategic partnership, GoEasy acquired a minority interest in PayBright, a Toronto-based point-of-sale consumer financing specialist.
Net income for the third quarter as $19.8 million or $1.28 per share, compared to $14.3 million or 97 cents per share – a rocket fuelled gain of 32.0% on a per share basis.
“We saw positive momentum from our new branded media campaign, which drove a 25% increase in loan application volume and a second straight quarter of record new customers, resulting in a 20% increase in loan growth over the prior year,” GoEasy president and chief executive officer Jason Mullins said in a statement.
For the nine months also ending 30 September 2019, GoEasy achieved revenues of $444 million, up 21% from the $368 million for the same period of 2018. Overall same store sales were 19.8%.
EasyFinancial revenues climbed 28.4% to $340.2 million, from $265.0 million for the comparable period.
EasyHome had revenues of $103.6 million, a modest 0.6% uptick from last year’s $103.0 million as same store sales climbed 3.4%.
Net income for the first nine months of 2019 was $57.7 million or $3.72 per diluted share, up from $37.2 million or $2.53 per share – a more than solid advance of 47% on a per share basis.
At the end of September, the publicly held GoEasy operated some 250 EasyFinancial locations, adding nine to it store count the year. It also operated 163 corporate and franchise EasyHome locations, two fewer than at the beginning of the year.