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GoEasy strikes earnings record

 19 February 2019     HGO Staff 

MISSISSAUGA, Ontario – GoEasy, parent to this country’s largest big-ticket leasing merchant, hit new highs in sales and earnings for both the fourth quarter and the full 2018 fiscal year, driven almost entirely by double-digit growth in its consumer lending arm, EasyFinancial.

Revenue for the three months ending 31 December 2018 was $138.2 million, up 28.8% from the $107.2 million generated for the three months ending 31 December 2017. Overall same store sales were up 28.5%.

Fourth quarter revenue from EasyFinancial – it’s short-term consumer lending arm – was $103.3 million, a 41% leap from $73.2 million for the same period the year prior. Its consumer loan portfolio ended the year valued at $834 million, up 58% on a year-over-year basis.

Meanwhile, revenue from EasyHome – a leasing merchant specialising in furniture, appliances and electronics – totalled $34.9 million for the last three months of the year, up 2.5% from the $34.0 million for the corresponding period. Same store sales for this segment were up 7.1%.

The company also reported EBITDA (earnings before interest, taxes, depreciation and amortisation) climbed 36.8% for the fourth quarter to $37.8 million – from $27.7 million for the comparable period.

Net earnings were pegged at $15.9 million or $1.02 per share, up from $5.4 million or 38 cents per share – an uptick of 168.4% on a per share basis.

Revenue for the full 2018 year was $506.2 million, up 26.0% from $401.7 million for 2017 as same store sales grew 25.7%.

Easyfinancial revenue for the year was $368.3 million, a 39.3% advance from the prior year’s $264.5 million.

EasyHome generated revenue of $137.9 million for the year, advancing 0.4% over the $137.3 million for 2017 as same store sales gained 6.4%.

EBITDA climbed 33.8% to $131.6 million.

Net earnings were $53.1 million or $3.56 per share, compared to $36.1 million or $2.56 per share – a gain of 39.1% on a per share basis.

In its announcement, GoEasy noted the October to December period represented its 35th consecutive quarter or same store sales growth and 70th consecutive quarter of positive net income. Since 2001, the publicly-held company has recorded compound annual revenue growth of 13% and net income growth of 29%.

It also announced the annual dividend payable to shareholders would be increased for the fifth consecutive year to $1.24 per share – up 38% from 90 cents per share.

The company also said it intends to add at least ten – and as many as 20 – EasyFinancial locations to its network this year as well as in each of the next two years. It anticipates in gross loan portfolio will top the $1 billion mark sometime in 2019 and could be as high as $1.7 billion by the end of 2021.

At the end of the year, GoEasy operated a total of 165 EasyHome stores across the country, including 31 franchise and 134 corporate locations. That’s down from 171 at the end of 2017 as six corporate stores were closed one was converted into a franchise. There were 241 EasyFinancial locations in operation, up to 228 at the end of 2017.

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