GoEasy revenue up in 2Q
MISSISSAUGA, Ontario – GoEasy said same store sales were up for the 29th consecutive quarter for three month period ending this past June 30 as the shift from being a leasing merchant of furniture, mattress, appliances and electronics to being a provider of consumer loans continues to pick up momentum.
For the three months ending June 30, 2017, revenue increased to $98.2 million, up 14.1% from the $86.1 million in the same period of 2016. Total same store sales growth was 16.6%, which the company said “was driven by the expansion of Easyfinancial and the related growth of its consumer loans receivable portfolio which reached $425.3 million by quarter’s end, up 30.4% from June 30, 2016.”
Easyfinancial’s contribution to the top line was $63.6 million, up 26% from $50.4 million for the 2016 period.
Meanwhile, Easyhome revenue was $34.6 million, down 3.1% from $35.7 million. However, same store sales for the merchandise leasing segment were up 1.4% for the period.
Net income for period was $8.9 million or 65 cents per share, compared to $10.5 or 75 cents per share for the comparable period – a drop of 16.0% on a per share basis.
The company attributed the decline to a number of factors, an increasing advertising spend and the costs related to exploring a potential acquisition target.
“We are delighted with the results and the disciplined execution made against our strategic imperatives,” David Ingram, Goeasy president and chief executive officer, said in a statement. “During the quarter, we successfully launched Easyfinancial into the province of Quebec, began offering our lending services directly through select Easyhome stores and increased the availability of our risk adjusted interest rate loans to our most credit-worthy customers.”
For the first six months of the year, also ending June 30, 2017, revenues were $192.9 million, up 14.5% from $168.4 million for the comparable period last year. Total same store sales gained 17.2%
Easyfinancial revenue was $128.7 million, up 29.6% from $95.4 million last year.
Easyhome revenue was $69.2 million, down 5.4% from $73.0 million for the first half of 2016. Same store sales were off a slight 0.1% for the period.
Net earnings were $19.2 million or $1.36 per share, compared to $16.0 million or $1.14 per share – an uptick of 19.3% on a per share basis.
Looking at to the rest of 2017, GoEasy confirmed its target of growing its loan book to the upper end of the $475 to $500 million range by the end of the year and to opening between 20 and 30 new Easyfinancial locations. This should produce revenue growth for the segment of between 10% and 12%.
Ingram also noted the publicly-held company will launch a secured lending product during the third quarter, which was described as a “natural and progressive extension of its customer offerings.” These will be instalment loans secured by real estate.
As at June 30, the company operated 215 Easyfinancial locations (including 43 kiosks located within Easyhome stores) and 173 Easyhome stores, including 28 franchises.