Great Q2 MISSISSAUGA, ONTARIO--(Marketwired - July 30, 2014) - easyhome Ltd. (TSX:EH) ("easyhome" or the "Company"), the Canadian leader in providing goods and financial services to the cash and credit constrained consumer, today announced its results for the second quarter ended June 30, 2014.
Revenue for the second quarter of 2014 increased to $63.2 million, an increase of 17.6% from $53.8 million in the second quarter of 2013. The growth was driven primarily by the expansion of easyfinancial and the related growth of its consumer loans receivable portfolio. Total same store sales growth in the quarter was 19.7%. Operating income for the quarter was $7.7 million, up $2.2 million or 41% compared to the second quarter of 2013. Net income for the quarter was $4.5 million, an increase of 46% compared with $3.1 million reported in the second quarter of 2013. Diluted earnings per share for the quarter, increased by 27% to $0.33 compared to $0.26 for the second quarter of 2013.
"easyhome delivered record revenues and its best second quarter financial performance in the Company's history," said David Ingram,easyhome's President and Chief Executive Officer. "easyhome Leasing continued to generate solid earnings and cash flows while easyfinancialgrew revenues and operating earnings by expanding its consumer loans receivable portfolio. As a result, our operating income increased by 41%."
During the second quarter of 2014, the consumer loans receivable portfolio experienced record growth of $21.9 million compared with growth of $9.3 million in the second quarter of 2013. The gross consumer loans receivable as at June 30, 2014 was $145.4 million compared with $83.9 million as at June 30, 2013, growing 73% over the preceding 12 months.
Additionally, and as previously announced, the Company replaced its existing credit facilities with a new $200 million credit facility subsequent to the end of the quarter. The additional financing will support the expected growth of easyfinancial until the end of 2015 without the need for additional equity financing while reducing its cost of borrowing.
Other highlights for the second quarter of 2014 include:
easyfinancial Services
- Revenue for easyfinancial increased by 75% for the second quarter of 2014 compared to the second quarter of 2013.
- Operating margin of 30.8% for the second quarter of 2014 was up from 27.9% reported for the same period in 2013. Strong growth in the quarter positively impacted margins.
- During the quarter, easyfinancial opened 11 new stand-alone locations.
easyhome Leasing
- Although revenue was reduced slightly compared to the second quarter of 2013, it was generated by a smaller and more efficient store network resulting in an operating margin of 16.3%.
- easyhome Leasing achieved same store sales growth of 2.7% for the second quarter of 2014.
Overall
- Return on equity improved from 11.5% in the second quarter of 2013 to 12.8% in the current quarter.
- Corporate costs were impacted by an increase in incentive compensation plan expenses, primarily driven by the appreciation in the Company's share price. If the impact of the increase in incentive compensation plan expenses were excluded, earnings per share for the quarter would have increased a further $0.06 when compared to the second quarter of 2013.
Six Months Results
For the first half of the year, easyhome recorded revenues of $123.6 million, up 16.4% compared with $106.2 million in the first half of 2013. Operating income for the period was $15.6 million compared with $10.5 million in the first six months of 2013, an increase of 49% while net income increased by $3.1 million or 52%. Earnings per share increased from $0.50 to $0.66 cents, an increase of $0.16 or 32%.