MISSISSAUGA, ONTARIO--(Marketwired - Nov. 3, 2015) - goeasy Ltd. (TSX:GSY), ("goeasy" or the "Company"), the leading full service provider of goods and alternative financial services that improve the lives of everyday Canadians, today announced its results for the third quarter ended September 30, 2015.

Q3 2015 Results

Revenue for the third quarter of 2015 increased to a record of $78 million, an increase of 19.0% from $66 million in the third quarter of 2014. Total same store sales growth in the quarter was 18.6%. The growth was driven primarily by the expansion of easyfinancial and the related growth of its consumer loans receivable portfolio which grew by $22.7 million during the third quarter of 2015. The gross consumer loans receivable as at September 30, 2015 was $254 million compared with $166 million as at September 30, 2014, an increase of 53%.

Operating income for the quarter was $12.9 million, up $5.5 million or 74% compared to the third quarter of 2014. Net income for the quarter was $6.3 million, an increase of 80% compared with $3.5 million reported in the third quarter of 2014. Diluted earnings per share for the quarter increased to $0.45 compared to $0.25 for the third quarter of 2014. These income statement metrics represent record quarterly performance for goeasy.

"We are pleased with the record financial performance achieved in the quarter," said David Ingram, goeasy's President and Chief Executive Officer. "The previous investments that we made in technology, infrastructure, risk management, staff and brand positioning are now delivering the expected results. In addition to the improving financial performance, we completed several key strategic activities during the third quarter of 2015. We are confident that these will drive additional benefits in future quarters as we continue to grow and execute against our stated strategy."

The strategic activities completed during the third quarter of 2015 were as follows:

  • easyfinancial's delivery channels were enhanced through the partnership with Leon's Furniture Ltd. ("Leons") to provide customers of Leon's with a new point-of-sale financing alternative utilizing an internally developed tablet technology solution.
  • The Company's ability to continue expanding was enhanced by increasing its total credit facilities by $100 million while reducing the interest rate. This will facilitate the growth of its gross consumer loans receivable portfolio through to 2017.
  • The leasing operations were made more efficient through the acquisition of 14 leasing stores from Rent-A-Center, Inc.
  • The Company's rebranding was completed with the change in the corporate name from easyhome Ltd. to goeasy Ltd., reflecting the evolution and growth in the business as it moves from a name that was aligned with the legacy leasing business to a corporate name that encompasses all of the Company's business units and its ambition to add new goeasy brands as it executes towards its strategic goals.

Other highlights for the third quarter of 2015 include:


  • Revenue for easyfinancial increased by 47% for the third quarter of 2015 compared to the third quarter of 2014.
  • Gross loan originations increased by 41% from $58 million in the third quarter of 2014 to $82 million in the current quarter.
  • Operating margin of 32.4% for the third quarter of 2015 was up from 29.6% reported for the same period in 2014.

easyhome Leasing

  • Revenue for easyhome Leasing was relatively unchanged from the third quarter of 2014.
  • Same store revenue growth was 8.0%.
  • The operating margin of easyhome Leasing for the third quarter of 2015 was 15.6%, up from the 11.2% reported for the same period in 2014.


  • Operating margin was 16.5% for the quarter, up from 11.3% in the third quarter of 2014.

Nine Months Results

For the first nine months of the year, goeasy recorded revenues of $221 million, up 17.1% compared with $189 million in the first nine months of 2014. Operating income for the period was $33 million compared with $23 million in the first nine months of 2014, an increase of 43% while net income increased by $3.5 million or 28%. Diluted earnings per share increased from $0.91 to $1.15, an increase of 26%.


The Company's 2015 targets remain unchanged from the targets detailed in its earnings release for the second quarter of 2015.

The Company has established the following targets for 2016:

  • open 10 - 20 new easyfinancial locations
  • easyfinancial gross consumer loans receivable portfolio growing to $360 - $390 million by year end
  • easyfinancial operating margins for 2016 of 32 - 35%.

Based on these assumptions, the Company expects total revenue growth of 16 - 20% for 2016. The achievement of these targets by the Company, however, is predicated on a number of factors, including the pace of expansion of easyfinancial.

In addition to specific targets for the 2015 and 2016 fiscal years, the Company has established a number of three year targets that it is working to achieve by the end of 2018.

  • 220 - 240 easyfinancial locations operating by the end of 2018
  • easyfinancial gross consumer loans receivable portfolio growing to $500 million
  • easyfinancial margins of 35%

"The progress made on all fronts during the last few years has positioned the Company for significant EPS expansion and unencumbered loan book growth for the next few years," Mr. Ingram commented. "Our plans for next year are focused on completing existing IT projects, accelerating new customer originations, particularly through the indirect channel, and achieving efficiency and effectiveness as the business continues to expand."

The Board of Directors has approved a quarterly dividend payment of $0.10 per share payable on January 8, 2016 to the holders of common shares of record as at the close of business on December 24, 2015.

Forward-Looking Statements

This new release includes forward-looking statements about goeasy, including, but not limited to, its business operations, strategy and expected financial performance and condition. Forward- looking statements include, but are not limited to, those with respect to the estimated number of new locations to be opened, targets for growth of the consumer loans receivable portfolio, annual revenue growth targets, strategic initiatives, new product offerings and new delivery channels, anticipated cost savings, planned capital expenditures, anticipated capital requirements, liquidity of the Company, plans and references to future operations and results and critical accounting estimates. In certain cases, forward-looking statements that are predictive in nature, depend upon or refer to future events or conditions, and/or can be identified by the use of words such as 'expects', 'anticipates', 'intends', 'plans', 'believes', 'budgeted', 'estimates', 'forecasts', 'targets' or negative versions thereof and similar expressions, and/or state that certain actions, events or results 'may', 'could', 'would', 'might' or 'will' be taken, occur or be achieved.

Forward-looking statements are based on certain factors and assumptions, including expected growth, results of operations and business prospects and are inherently subject to, among other things, risks, uncertainties and assumptions about the Company's operations, economic factors and the industry generally, as well as those factors referred to the Company's December 31, 2014 Management Discussion and Analysis in the section entitled "Risk Factors". There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events could differ materially from those expressed or implied by forward-looking statements made by the Company, due to, but not limited to important factors such as the Company's ability to enter into new lease and/or financing agreements, collect on existing lease and/or financing agreements, open new locations on favourable terms, secure new franchised locations, purchase products which appeal to customers at a competitive rate, respond to changes in legislation, react to uncertainties related to regulatory action, raise capital under favourable terms, manage the impact of litigation (including shareholder litigation), control costs at all levels of the organization and maintain and enhance the system of internal controls. The Company cautions that the foregoing list is not exhaustive.

The reader is cautioned to consider these and other factors carefully and not place undue reliance on forward-looking statements, which may not be appropriate for other purposes. The Company is under no obligation (and expressly disclaims any such obligation) to update or alter the forward- looking statements whether as a result of new information, future events or otherwise, unless required by law.

About goeasy

As at September 30, 2015, the Company operated 186 easyhome Leasing stores (including 25 franchises and 4 consolidated franchise locations) and 201 easyfinancial locations.

goeasy Ltd. is the leading full service provider of goods and alternative financial services that improve the lives of everyday Canadians. Today, goeasy Ltd. serves its customers through two key operating divisions, easyhome Leasing and easyfinancial. easyhome Leasing is Canada's largest lease-to-own company, offering brand-name household furniture, appliances and electronics to consumers under weekly or monthly leasing agreements through both corporate and franchise stores. easyfinancial is the leading provider of alternative financial services, offering consumer loans between $500-$10,000, and is supported by a strong central credit adjudication process and industry leading risk analytics. easyfinancial also operates an indirect lending channel, offering loan products to consumers at the point-of-sale of third party merchants. Both operating divisions of goeasy Ltd. offer the highest level of customer service and enable customers to transact through a national store and branch network of over 180 easyhome Leasing and 200 easyfinancial locations across Canada and through its online and mobile eCommerce enabled platforms.

goeasy Ltd. is listed on the TSX under the symbol 'GSY'. For more information, visit www.goeasy.com.

goeasy Ltd.



(expressed in thousands of Canadian dollars)

As At As At
September 30, December 31,
2015 2014
Cash 22,261 1,165
Amounts receivable 14,321 16,508
Prepaid expenses 3,002 1,971
Income taxes receivable 1,260 -
Consumer loans receivable 237,907 180,693
Lease assets 60,523 64,526
Property and equipment 19,437 16,915
Deferred tax assets 5,603 6,725
Intangible assets 13,884 11,006
Goodwill 21,310 19,963
TOTAL ASSETS 399,508 319,472
Revolving operating facility - 1,756
Accounts payable and accrued liabilities 25,490 32,837
Income taxes payable - 3,042
Dividends payable 1,339 1,133
Deferred lease inducements 2,122 2,603
Unearned revenue 3,625 3,978
Provisions 584 314
Term loan 197,515 119,841
TOTAL LIABILITIES 230,675 165,504
Shareholders' equity
Share capital 81,481 80,364
Contributed surplus 8,760 6,458
Accumulated other comprehensive income 1,113 694
Retained earnings 77,479 66,452

goeasy Ltd.



(expressed in thousands of Canadian dollars except earnings per share)

Three Months Ended Nine Months Ended
September 30, September 30, September 30, September 30,
2015 2014 2015 2014
Lease revenue 37,256 37,041 110,129 113,623
Interest income 26,481 17,107 71,280 44,622
Other 14,246 11,380 39,989 30,863
77,983 65,528 221,398 189,108
Salaries and benefits 21,328 19,107 63,561 56,849
Stock based compensation 1,009 1,182 3,604 4,450
Advertising and promotion 2,754 3,174 8,069 6,510
Bad debts 10,856 7,252 28,460 17,507
Occupancy 7,995 6,994 23,584 20,903
Other 6,671 6,080 19,034 17,673
50,613 43,789 146,312 123,892
Depreciation of lease assets 12,248 12,564 35,506 36,925
Depreciation of property and equipment 1,326 1,215 3,965 3,560
Amortization of intangible assets 880 526 2,464 1,512
Impairment, net 44 26 90 168
14,498 14,331 42,025 42,165
Total operating expenses 65,111 58,120 188,337 166,057
Operating income 12,872 7,408 33,061 23,051
Finance costs 3,978 2,535 10,729 5,893
Income before income taxes 8,894 4,873 22,332 17,158
Income tax expense (recovery)
Current 1,960 1,708 4,998 8,621
Deferred 678 (305 ) 1,138 (4,099 )
2,638 1,403 6,136 4,522
Net income 6,256 3,470 16,196 12,636
Basic earnings per share 0.46 0.26 1.19 0.94
Diluted earnings per share 0.45 0.25 1.15 0.91

Contact Information:

goeasy Ltd.
David Ingram
President and Chief Executive Officer
(905) 272-2788

goeasy Ltd.
Steve Goertz
Executive Vice President and Chief Financial Officer
(905) 272-2788