Goeasy Q1 revenue up 15%
MISSISSAUGA, Ontario – While Easyhome lost a little ground on the merchandise leasing side, Easyfinancial continued its almost unprecedented growth spurt on the consumer lending side, fueling parent company Goeasy’s top and bottom lines to new highs.
Revenue for the three months ending March 31, 2017, was $94.7 million, up 15.0% from $82.3 million for the first quarter of 2016. Total same store sales grew 17.9%.
The company noted growth was driven by the expansion of Easyfinancial as its consumer loans receivable portfolio reached $387.1 million, a gain of 27.3% from March 31, 2016.
Net income for the quarter was $10.3 million or 73 cents per diluted share, compared to $7.6 million or 52 cents per diluted share for the comparable period – a gain of 40.4% on a per share basis.
“We are off to a great start in 2017 with both revenue and earnings expansion,” Goeasy president and chief executive officer David Ingram said in a statement.
“Our results for the first quarter of 2017 benefited from the implementation of enhanced collection strategies which led to our lowest annualised charge off rate for eight quarters. We also positioned ourselves for future growth and record earnings by increasing the penetration of our risk adjusted loans and preparing ourselves for both our launch into Quebec and the introduction of our easyfinancial loan products into our easyhome stores which occurred early in the second quarter of 2017.”
Revenue for Easyfinancial increased by 33.3% to $60.0 million from $45.0 million in the first quarter of 2016 as the company provided loans valued at $106.1 million during the January to March period – up 29.9% on a year-over-year basis.
Meanwhile revenue for Easyhome fell 7.0% to $34.7 million in the first quarter, from $37.3 million as same store sales declined 1.7%.
Last month, Goeasy began offering Easyfinancial loan products within it Easyhome retail stores, through an initial roll out to 33 units. The roll out will continue so that by the end of the second quarter, they will be offered in some 100 Easyhome stores.
Easyfinancial was also launched in Quebec in April with the opening of a branch in Lavel. The company plans to open 10 addition branches this year and have 40 across the province by the end of 2019.
Easyfinancial will also launch a new, secured lending product in the third quarter of 2017, which will be secured by real estate.