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goeasy Ltd T.GSY

Alternate Symbol(s):  EHMEF

goeasy Ltd. is a Canadian company that provides non-prime leasing and lending services through its easyhome, easyfinancial, and LendCare brands. The Company's segments include easyfinancial and easyhome. The easyfinancial segment lends out capital in the form of unsecured and secured consumer loans to non-prime borrowers. easyfinancial's product offering consists of unsecured and real estate secured instalment loans. The LendCare operating segment specializes in financing consumer purchases in the powersports, automotive, retail, healthcare, and home improvement categories. The easyhome segment provides leasing services for household furniture, appliances and electronics and unsecured lending products to retail consumers. Its customers can transact seamlessly through an omnichannel model that includes online and mobile platforms, over 400 locations across Canada, and point-of-sale financing offered in the retail, powersports, automotive, home improvement, and healthcare verticals.


TSX:GSY - Post by User

Bullboard Posts
Post by dm27427on Nov 01, 2017 7:43pm
187 Views
Post# 26891282

One-time charge

One-time charge
From press release Nov. 1st, 7:25 PM:

As a result of repaying and terminating the existing term loan, the Company will incur an early repayment penalty and will write-off the remaining unamortized deferred financing costs.  The Company expects to recognize a one-time before tax charge of $8.2 million in the fourth quarter of 2017.

$8.2 million is about the total net income expected for the fourth quarter. We shall see if optimisim for future growth outweighs the hit to the bottom line. The size of the financing and the increase of the revolving credit faciltiy from $20M to $110M speaks to confidence in the company, which I share. Short term SP pain might be in the offing though.
Bullboard Posts