Looking ahead, easyhome's strategic focus remains unchanged. The Company will focus on growing easyfinancial, increasing the profitability of the leasing business and growing the franchise network.
The additional financing obtained in 2012 will allow the Company to grow its consumer loans receivable portfolio unencumbered during 2013. Additionally, easyfinancial expects to open a further 25 to 35 locations during 2013 and expects these locations to be stand alone sites. easyfinancial will also focus on continuing to grow its consumer loans receivable portfolio at existing locations. The Company anticipates a loan book of between $95.0 and $100.0 million by the end of 2013.
David Ingram commented, "The Company's view of the North American economic situation suggests that 2013 will be another challenging year, particularly impacting the purchasing decisions of consumers. As a result, easyhome Leasing is not expecting significant growth and does not intend to significantly grow its leasing footprint. Rather easyhome Leasing will continue to drive profitability enhancements across its existing store network."
Mr. Ingram concluded, "My thanks go out to our entire team who have worked tirelessly to provide access to millions of cash and credit constrained consumers for goods and services neglected by mainstream financial services. This was our eleventh consecutive year of growing revenues and producing positive net income."
The Company does not plan to open any new corporate stores during 2013. Of course, should an economic recovery begin to take hold, these expansion plans for the leasing business will be reviewed in the future.
Fortunately, the Company's strategy of developing complementary business units is now somewhat mitigating the impacts of a negative economy on its revenue. While the Company is anticipating low growth within its leasing business, this is more than offset by the strong growth expected from easyfinancial. Ultimately, easyhome is targeting total revenue growth of between 8% and 12% for 2013. As such, next year is expected to be a record year for both revenues and earnings.
Donald K. Johnson, Chairman of the Board, commented, "The Board is pleased with the overall performance of the Company during 2012. Both revenues and net income have shown continued growth and the Company's management has taken the necessary steps to support the Company's strategy for sustainable growth."
The Board of Directors has approved a quarterly dividend payment of $0.085 per share payable on April 16, 2013 to the holders of common shares of record as at the close of business on April 5, 2013.
As of March 11, 2013, easyhome Ltd. operated 191 easyhome leasing stores (including 9 consolidated franchise locations), 100 easyfinancial locations and 49 franchise locations.
easyhome Ltd. is Canada's largest merchandise leasing Company, offering top quality, brand- name household furnishings, appliances and home electronic products to consumers under weekly or monthly leasing agreements through both corporate and franchise stores. In addition, the Company offers a variety of financial services, including loans and prepaid cards, through its easyfinancial Services business. easyhome Ltd. is listed on the TSX under the symbol 'EH'. For more information, visit www.easyhome.ca.
The above analysis refers to certain financial measures, including same store revenue growth, gross consumer loans receivable, adjusted earnings, adjusted operating earnings and adjusted EBITDA, which are not determined in accordance with International Financial Reporting Standards ("IFRS"). These measures do not have standardized meanings and may not be comparable to similar measures presented by other companies. These measures are defined in our Management's Discussion and Analysis for the period which is available on SEDAR or on the Company's website at www.easyhome.ca or can be determined by reference to our financial statements. We discuss these measures as we believe that they facilitate the understanding of the results of our operations and financial position.
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