"We are pleased with the financial performance of all of our business units during the quarter," said David Ingram, easyhome's President and Chief Executive Officer. "The additional financing that was secured at the beginning of the fourth quarter allowed us to continue growing our easyfinancial business, improving profitability now and into the future. Additionally, we are encouraged by the improved operating results of our leasing business. The restructuring activities that we completed earlier in the year are beginning to positively impact results and the exchange of stores that was completed at the end of the quarter will benefit the operating income of our leasing business throughout 2013."
Fourth Quarter Results
For the fourth quarter ended December 31, 2012, easyhome generated revenues of $51.7 million, an increase from $49.3 million in the fourth quarter of 2011. At the store level, including easyfinancial, same store revenue growth for the quarter was a strong 9.0%.
On a segmented basis, easyfinancial Services revenues increased 40% to $10.9 million from $7.8 million for the same period last year. The improvement is a result of the increase in the consumer loans receivable portfolio from $47.6 million to $70.7 million. The Company's leasing operations recorded revenues of $40.2 million, down from $41.0 for the same period last year due to the reduced number of stores. Franchising operations recorded revenues of $0.5 million, relatively unchanged from the same period last year.
Operating income, which is income before interest expense and income taxes, increased 38% to $5.8 million from $4.2 million in the fourth quarter of 2011. As a percentage of revenue, operating income was 11.2% compared to 8.5% in the fourth quarter of 2011. Excluding the net gain realized on the sale of the U.S. corporate stores and the impact of increased stock based incentive compensation plan expenses, adjusted operating income increased by $1.9 million or 46.3%.
Net income increased to $3.8 million or 32 cents per share for the fourth quarter of 2012, compared with net income of $2.6 million or 22 cents per share for the fourth quarter of 2011.
Fiscal 2012 Results
For the full year, easyhome recorded revenues of $199.7 million, up 6.0% compared with $188.3 million in fiscal 2011. Operating income for the period was $17.7 million compared with $15.3 million in fiscal 2011, an increase of 16.0%. Adjusted operating earnings for fiscal 2012, excluding the restructuring and other charges, was $17.3 million, an increase of 13.5% over fiscal 2011. Both operating income and adjusted operating earnings for 2012 compared to 2011 were negatively impacted by a $1.5 million increase in stock based incentive compensation plan expenses, driven by the year over year rise in the Company's share price.
Earnings per share increased from 81 cents to 93 cents. Net income, adjusted for unusual items, was $10.5 million compared with $9.6 million for the last year. On a per share basis and excluding unusual items, earnings per share was 87 cents compared with 81 cents a year ago.
Cash flow provided by operating activities for the year ended December 31, 2012 was $58.2 million. Included in these cash flows was a net investment in the easyfinancial Services consumer loans receivable portfolio of $31.4 million. If this net investment in the loan portfolio was treated as cash flow from investing activities, cash flow from operating activities would be $89.6 million. This cash flow from operating activities enabled the Company to invest in the portfolios to drive future revenue growth of all business units and maintain its total dividend payments for the quarter.
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