MISSISSAUGA, ONTARIO -- (Marketwire) -- 03/11/13 -- easyhome Ltd. (TSX: EH) (the "Company" or "easyhome"), Canada's largest merchandise leasing company and a growing provider of financial services, today announced its results for the fourth quarter and full year ended December 31, 2012.
easyhome delivered record revenues and strong earnings growth in the fourth quarter of 2012. Revenue for the quarter increased 4.9% to $51.7 million, driven primarily by the expansion of the easyfinancial Services business and the related growth of its consumer loans receivable portfolio. Net income for the quarter was $3.8 million, up from $2.6 million reported in the fourth quarter of 2011. Reported earnings per share for the quarter was 32 cents compared to 22 cents for the fourth quarter of 2011.
During the fourth quarter of 2012, the consumer loans receivable portfolio experienced a record level of growth, increasing by $11.1 million compared with growth of $4.9 million in the fourth quarter of 2011. The gross consumer loans receivable as at December 31, 2012 was $70.7 million compared with $47.6 million as at December 31, 2011.
Other highlights for the fourth quarter of 2012 include:
-- Successful completion of an exchange of stores with a large U.S. based rent-to-own company. The exchange consisted of the concurrent sale of the assets and operations of 15 leasing stores owned by easyhome in the U.S. and the purchase of the assets and operations of 15 leasing stores in Canada.-- Same store revenue growth excluding easyfinancial Services of 2.7%.-- Record quarter for unit deliveries.-- Excluding the impact of changes to the store network, the lease portfolio as measured by potential monthly lease revenue increased by $0.6 million.-- Although revenue declined in the fourth quarter of 2012 compared to 2011 due to the reduced store count, operating income for the leasing business increased 10.9%.
-- The consumer loans receivable portfolio closed at $70.7 million, representing a year- over-year increase of 49%.-- Revenue for the fourth quarter of 2012 increased 40% compared to the fourth quarter of 2011.-- Operating margin of 27.3% was reduced from the previous quarter due to higher loan book growth requiring a larger provision against future losses (although the actual charge off rate was comparable between periods) and additional drag from new store openings along with increased amortization related to the new loan system.
-- Franchise system wide revenue increased 28% compared to the fourth quarter of 2011.-- Two new Be-A-Contender franchise locations that are funded by easyhome opened during the fourth quarter.
-- Same store revenue growth of 9.0%.-- Operating income for the quarter includes a net gain of $0.8 million (7 cents per share) realized on the sale of the U.S. corporate stores.-- Operating income for the quarter was negatively impacted by a $1.1 million (7 cents per share) increase in stock based incentive compensation plan expenses, which are based on expected performance versus targets and movements in the Company's share price.-- Excluding the net gain and the impact of increased stock based incentive compensation plan expenses, adjusted operating income increased by $1.9 million or 46.3%.-- Operating margin of 11.2% and EBITDA margin of 12.7%, up from 8.5% and 11.0%, respectively, from the fourth quarter of 2011.-- Cash flow from operating activities of $15.6 million.