GoEasy sees Q1 upticks
MISSISSAUGA, Ontario – GoEasy, parent to this country’s largest big-ticket lease-to-own merchant, reported strong increases to both sales and earnings for the first quarter of 2020. The improved performance continued to be driven mostly by its consumer lending arm, which accounts for roughly 80% of its overall business.
Revenue for the three months ending 31 March 2020 was $167.2 million, 19.5% greater than the $139.9 million for the same period of 2019.
Revenue from EasyFinancial, its consumer lending arm was $131.8 million for the period, a 26.0% advance from the $104.6 million last year.
Meanwhile, revenue from EasyHome, its lease-to-own retail branch,, was $35.4 million – up 0.5% over the $35.2 million rung-up for the same period last year.
The lease-to-own merchant’s sales mix saw only slight variations compared to the first quarter of 2019. Appliances accounted for 12.3% of lease revenue, compared to 11.6% last year. Electronics, such as televisions, also was up slightly at 31.9% as furniture dropped to 45.1% from 45.7% and computers dropped from 11.1% to 10.7%.
Same store sales were up 19.6% overall as same store sales for Easyhome gained 4.5%. Both measures were down slightly year-over-year.
Net income was $22.0 million or $1.41 per diluted share, compared to $18.3 million or $1.18 per diluted share for the first quarter of 2019 – a climb of 19.5% on a per share basis.
In a statement, GoEasy president and chief executive officer Jason Mullins, noted that because of the COVID-19 pandemic, the company has shifted its immediate focus away from acquiring new customers to serving and supporting existing customer and its work force.
“Our hearts go out to the many families and communities around the world being affected by the COVID-19 pandemic and I wish to thank our 2,000 team members that have stood by our customers through this unprecedented event,” he said.
“We were fortunate to enter this crisis from a position of strength, with over $214 million of liquidity and a business model that is well positioned to navigate through an economic downturn. As the outbreak arrived, we pro-actively closed our branches and enabled our digital lending capabilities, while implementing new underwriting protocols and remaining fully operational throughout,” he added.
Mullions noted the company doesn’t expect to see growth in EasyFinancial’s loan portfolio during the second quarter of the year, they are positioning themselves to focus on profitable growth when the economy begins to re-open across the country.
At the end of March, GoEasy operated some 162 EasyHome stores across the country, including 35 franchise locations. During the quarter, it closed one corporate store. It also operated some 256 EasyFinancial locations, including both in-store kiosks and stand-alone offices.