Loan Portfolio of
Net Charge-Off Rate of 7.8%, down 540 bps
Adjusted Diluted Earnings per Share of
Total Liquidity of
Third Quarter Results
During the quarter, the Company experienced an improved level of loan originations and a reduction in credit losses, leading to record financial results.
Gradual re-opening of the economy and a reduction in the stay-at-home orders originally caused by the COVID-19 pandemic, served to improve overall demand. As such, the Company generated
The Company also continued to experience strong credit and payment performance. Use of the Company’s loan protection insurance program, the continuation of government relief programs, assistance provided by banks and other lenders such as payment deferral programs and reduced living expenses, combined with previous credit model enhancements, resulted in an improvement to credit losses. The net charge-off rate for the third quarter was a record low 7.8%, compared to 13.2% in the third quarter of 2019. Although there remains uncertainty about the exact timing and pace of an economic recovery, the improvement in underlying credit performance and the general macroeconomic environment resulted in the Company holding its allowance for future credit losses broadly flat at 10.03%.
Reduced operating expenses and record low credit losses led to operating income of
Net income in the third quarter was a record
“During the quarter we continued to prioritize the safety and well-being of our team, while also producing further improvements in operating performance. As credit losses fell to another record low of 7.8%, we experienced a gradual improvement in demand, lifting originations to prior year levels and leading to loan growth of nearly
Other Key Third Quarter Highlights
easyfinancial
- Secured loan portfolio grew to
$141.6 million , up 40% - 50% of net loan advances in the quarter were issued to new customers, down from 65%
- 44% of applications were acquired online, down slightly from 45%
- Aided brand awareness of 85%, up from 84%
- Average loan book per branch improved to
$3.7 million , an increase of 6% - The delinquency rate on the final Saturday of the quarter was 4.3%, down from 4.6%
- Operating income of
$63.8 million , up 34% - Operating margin of 50.7%, up from 38.9%
easyhome
- Revenue of
$36 million , up 6% - Same store revenue growth of 7.2%
- Consumer loan portfolio within easyhome stores increased to
$44.9 million , up 34% - Revenue from consumer lending increased to
$5.5 million , up 21% - Record operating income of
$7.9 million , up 40% - Record operating margin of 21.9%, up from 16.6%
Overall
- 42nd consecutive quarter of same store sales growth
- 77th consecutive quarter of positive net income
- 16th consecutive year of paying dividends and 6th consecutive year of dividend increases
- Total same store revenue growth of 3.1%
- Return on equity of 34.7% in the quarter, up from 24.1%
- Fully drawn weighted average cost of borrowing reduced to 5%, down from 6.7%
- Net external debt to net capitalization of 66% on
September 30, 2020 , down from 69% in the prior year and below the Company’s target leverage ratio of 70% - Repurchased 108,660 common shares during the quarter at a weighted average price of
$63.55 , including an additional 76,440 shares subsequent to quarter-end at a weighted average price of$68.39 , through the Company’s Normal Course Issuer Bid, bringing total share repurchases year to date to 764,435 - No reduction of personnel during COVID-19, including a 10% reduction in year-to-date employee turnover
- Annual employee engagement score improved to record level of 83%, up 2% over the prior year
Nine Months Results
For the first nine months of 2020, goeasy produced revenues of
million in the same period of 2019. Operating income for the period was
Balance Sheet and Liquidity
Total assets were
During the quarter, the Company redeemed all its 5.75% convertible unsecured subordinated debentures (the “Convertible Debentures”) that were outstanding on
Cash provided by operating activities before the net issuance of consumer loans receivable and purchase of lease assets was
Based on the cash on hand at the end of the quarter and the borrowing capacity under the Company’s revolving credit facility, goeasy had approximately
The Company also estimates that once its existing and available sources of capital are fully utilized, it could continue to grow the loan portfolio by approximately
COVID-19 & Future Outlook
Due to the current uncertainty relating to the impacts of COVID-19, the Company intends to re-publish a 3-year forecast when the economic conditions and outlook stabilize. However, the Company remains confident that it is well positioned to navigate through the current economic downturn and has continued to see conditions gradually improve. Recent trends include:
- Improving Consumer Demand: The effects of the pandemic, which included stay-at-home orders, increased government subsidies and reduced expenses for consumers, led to temporarily reduced demand. During the second quarter, total loan originations were down 38% from the prior year. In the third quarter, loan originations improved to be broadly flat to 2019.
- Declining Loan Protection Insurance Claims: The majority of easyfinancial customers have
Loan Protection Insurance , offered by Assurant Inc., a global provider of risk-management solutions, which covers a borrower’s full loan payment for a period of 6 consecutive months in the event of unemployment. During the second quarter, total loan protection claims payments made on behalf of borrowers was$21.7 million . In the third quarter, claims payments declined by 33% to$14.6 million , with a further decline in the trend subsequent to quarter-end.
- Solutions to Support Borrowers Below Pre-COVID Levels: easyfinancial has a suite of loan amendment solutions that it can offer borrowers to support them through a difficult financial period. These include temporarily deferring loan payments or extending the term of a loan to reduce the regular payment obligation. In April approximately 12% of customers utilized a form of support, as compared to approximately 7%-8% in a typical month prior to the pandemic. However, since May the portion of borrowers utilizing a form of support has fallen to below pre-COVID levels and has remained below 7% for each month since.
- Strong Customer Payment Performance: The Company has continued to observe a strong level of true overall payment performance. During the second quarter, the Company collected an average of 96% of the payment volume it would normally collect prior to the pandemic. In the third quarter, customer payment volume relative to the outstanding consumer loan portfolio was at, or above, 100% of the levels it would normally collect prior to the pandemic.
“While there remains some uncertainty about the broader economic environment, we are seeing positive trends in the business and we are confident in our ability to navigate through a second wave. Consumer demand for credit continues to slowly recover and we expect growth in the loan portfolio of approximately 5% to 6% during the upcoming quarter. Credit and payment performance continue to perform well, and we project the annualized net charge-off rate will be approximately 10% in the fourth quarter. Lastly, we continue to make great progress on finalizing a new securitized funding facility. This important next step in the evolution of our balance sheet will further lower our funding costs and provide a material increase to our total liquidity,”
Dividend
The Board of Directors has approved a quarterly dividend of
Forward-Looking Statements
All figures reported above with respect to outlook are targets established by the Company and are subject to change as plans and business conditions vary. Accordingly, investors are cautioned not to place undue reliance on the foregoing guidance. Actual results may differ materially.
This press release includes forward-looking statements about goeasy, including, but not limited to, its business operations, strategy, expected financial performance and condition, 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 are 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 in the Company’s most recent Annual Information Form and Management Discussion and Analysis, as available on www.sedar.com, 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, 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 to 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
goeasy Ltd., a Canadian company, headquartered in Mississauga,
goeasy is the proud recipient of several awards including Waterstone Canada’s Most Admired Corporate Cultures, Glassdoor Top CEO Award, Achievers Top 50 Most Engaged Workplaces in North America, Greater Toronto Top Employers Award, the Digital Finance Institute’s Canada’s Top 50 FinTech Companies, ranking on the TSX30 and placing on the Report on Business ranking of Canada’s Top Growing Companies. The company and its employees believe strongly in giving back to the communities in which it operates and has raised over $3 million to support its long-standing partnerships with the Boys & Girls Clubs of Canada and Habitat for Humanity.
goeasy Ltd.’s. common shares are listed on the TSX under the trading symbol “GSY”. goeasy is rated BB- with a stable trend from S&P and Ba3 with a stable trend from Moody’s. Visit www.goeasy.com.
For further information contact:
President & Chief Executive Officer
(905) 272-2788
Executive Chairman of the Board
(905) 272-2788
goeasy Ltd. | |||||
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | |||||
(Unaudited) | |||||
(expressed in thousands of Canadian dollars) | |||||
As At | As At | ||||
2020 | 2019 | ||||
ASSETS | |||||
Cash | 39,477 | 46,341 | |||
Amounts receivable | 5,779 | 18,482 | |||
Prepaid expenses | 4,057 | 7,077 | |||
Consumer loans receivable, net | 1,100,998 | 1,040,552 | |||
Investment | 40,000 | 34,300 | |||
Lease assets | 46,351 | 48,696 | |||
Property and equipment, net | 28,905 | 23,007 | |||
Deferred tax assets | 7,323 | 14,961 | |||
Derivative financial assets | 3,455 | - | |||
Intangible assets, net | 22,677 | 17,749 | |||
Right-of-use assets, net | 46,943 | 46,147 | |||
21,310 | 21,310 | ||||
TOTAL ASSETS | 1,367,275 | 1,318,622 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Liabilities | |||||
Revolving credit facility | 98,221 | 112,563 | |||
Accounts payable and accrued liabilities | 47,564 | 41,350 | |||
Income taxes payable | 7,837 | 4,187 | |||
Dividends payable | 6,713 | 4,448 | |||
Unearned revenue | 8,952 | 8,082 | |||
Derivative financial liabilities | - | 16,435 | |||
Lease liabilities | 53,056 | 52,573 | |||
Accrued interest | 13,417 | 4,358 | |||
Convertible debentures | - | 40,656 | |||
Notes payable | 721,292 | 701,549 | |||
TOTAL LIABILITIES | 957,052 | 986,201 | |||
Shareholders' equity | |||||
Share capital | 182,524 | 141,956 | |||
Contributed surplus | 17,744 | 20,296 | |||
Accumulated other comprehensive income (loss) | 412 | (915 | ) | ||
Retained earnings | 209,543 | 171,084 | |||
TOTAL SHAREHOLDERS' EQUITY | 410,223 | 332,421 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 1,367,275 | 1,318,622 | |||
goeasy Ltd. | |||||||
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||
(Unaudited) | |||||||
(expressed in thousands of Canadian dollars except earnings per share) | |||||||
Three Months Ended | Nine Months Ended | ||||||
2020 | 2019 | 2020 | 2019 | ||||
REVENUE | |||||||
Interest income | 101,833 | 90,304 | 302,799 | 249,594 | |||
Lease revenue | 28,416 | 27,134 | 84,232 | 84,968 | |||
Commissions earned | 28,540 | 34,909 | 83,166 | 98,341 | |||
Charges and fees | 3,035 | 3,786 | 9,506 | 10,944 | |||
161,824 | 156,133 | 479,703 | 443,847 | ||||
EXPENSES BEFORE DEPRECIATION AND AMORTIZATION | |||||||
Salaries and benefits | 36,457 | 30,141 | 102,283 | 89,248 | |||
Stock-based compensation | 1,718 | 1,752 | 5,587 | 5,828 | |||
Advertising and promotion | 7,377 | 6,425 | 18,195 | 19,211 | |||
Bad debts | 27,221 | 43,326 | 100,505 | 113,485 | |||
Occupancy | 5,639 | 5,086 | 17,126 | 15,089 | |||
Technology costs | 3,817 | 3,314 | 10,499 | 9,071 | |||
Other expenses | 6,624 | 7,737 | 22,378 | 21,504 | |||
88,853 | 97,781 | 276,573 | 273,436 | ||||
DEPRECIATION AND AMORTIZATION | |||||||
Depreciation of lease assets | 8,701 | 9,023 | 26,790 | 28,051 | |||
Depreciation of right-of-use assets | 4,053 | 3,798 | 11,994 | 11,266 | |||
Depreciation of property and equipment | 1,451 | 1,607 | 4,488 | 4,657 | |||
Amortization of intangible assets | 1,820 | 1,355 | 4,699 | 4,127 | |||
16,025 | 15,783 | 47,971 | 48,101 | ||||
TOTAL OPERATING EXPENSES | 104,878 | 113,564 | 324,544 | 321,537 | |||
OPERATING INCOME | 56,946 | 42,569 | 155,159 | 122,310 | |||
OTHER INCOME | |||||||
Unrealized fair value gain on investment | 1,700 | - | 5,700 | - | |||
FINANCE COSTS | |||||||
Interest expense and amortization of deferred financing charges | 12,543 | 14,208 | 39,624 | 40,350 | |||
Interest expense on lease liabilities | 690 | 613 | 2,025 | 1,808 | |||
13,233 | 14,821 | 41,649 | 42,158 | ||||
INCOME BEFORE INCOME TAXES | 45,413 | 27,748 | 119,210 | 80,152 | |||
INCOME TAX EXPENSE (RECOVERY) | |||||||
Current | 9,990 | 8,097 | 23,288 | 21,951 | |||
Deferred | 2,350 | (174 | ) | 8,328 | 535 | ||
12,340 | 7,923 | 31,616 | 22,486 | ||||
NET INCOME | 33,073 | 19,825 | 87,594 | 57,666 | |||
BASIC EARNINGS PER SHARE | 2.20 | 1.35 | 5.95 | 3.94 | |||
DILUTED EARNINGS PER SHARE | 2.09 | 1.28 | 5.64 | 3.72 | |||
Segmented Reporting | ||||||||
Three Months Ended | ||||||||
($ in 000's except earnings per share) | easyfinancial | easyhome | Corporate | Total | ||||
Revenue | ||||||||
Interest income | 97,543 | 4,290 | - | 101,833 | ||||
Lease revenue | - | 28,416 | - | 28,416 | ||||
Commissions earned | 26,474 | 2,066 | - | 28,540 | ||||
Charges and fees | 1,839 | 1,196 | - | 3,035 | ||||
125,856 | 35,968 | - | 161,824 | |||||
Total operating expenses before | ||||||||
depreciation and amortization | 58,089 | 17,208 | 13,556 | 88,853 | ||||
Depreciation and amortization | ||||||||
Depreciation and amortization of lease assets, property and equipment and intangible assets | 2,014 | 9,051 | 907 | 11,972 | ||||
Depreciation of right-of-use assets | 1,977 | 1,824 | 252 | 4,053 | ||||
3,991 | 10,875 | 1,159 | 16,025 | |||||
Segment operating income (loss) | 63,776 | 7,885 | (14,715 | ) | 56,946 | |||
Other income | ||||||||
Unrealized fair value gain on investment | 1,700 | |||||||
Finance costs | ||||||||
Interest expense and amortization of deferred financing charges | 12,543 | |||||||
Interest expense on lease liabilities | 690 | |||||||
13,233 | ||||||||
Income before income taxes | 45,413 | |||||||
Income taxes | 12,340 | |||||||
Net Income | 33,073 | |||||||
Diluted earnings per share | 2.09 | |||||||
Three Months Ended | ||||||||
($ in 000's except earnings per share) | easyfinancial | easyhome | Corporate | Total | ||||
Revenue | ||||||||
Interest income | 87,087 | 3,217 | - | 90,304 | ||||
Lease revenue | - | 27,134 | - | 27,134 | ||||
Commissions earned | 32,706 | 2,203 | - | 34,909 | ||||
Charges and fees | 2,463 | 1,323 | - | 3,786 | ||||
122,256 | 33,877 | - | 156,133 | |||||
Total operating expenses before | ||||||||
depreciation and amortization | 71,283 | 16,854 | 9,644 | 97,781 | ||||
Depreciation and amortization | ||||||||
Depreciation and amortization of lease assets, property and equipment and intangible assets | 1,794 | 9,453 | 738 | 11,985 | ||||
Depreciation of right-of-use-assets | 1,672 | 1,951 | 175 | 3,798 | ||||
3,466 | 11,404 | 913 | 15,783 | |||||
Segment operating income (loss) | 47,507 | 5,619 | (10,557 | ) | 42,569 | |||
Finance costs | ||||||||
Interest expense and amortization of deferred financing charges | 14,208 | |||||||
Interest expense on lease liabilities | 613 | |||||||
14,821 | ||||||||
Income before income taxes | 27,748 | |||||||
Income taxes | 7,923 | |||||||
Net Income | 19,825 | |||||||
Diluted earnings per share | 1.28 | |||||||
Nine Months Ended | ||||||||
($ in 000's except earnings per share) | easyfinancial | easyhome | Corporate | Total | ||||
Revenue | ||||||||
Interest income | 290,483 | 12,316 | - | 302,799 | ||||
Lease revenue | - | 84,232 | - | 84,232 | ||||
Commissions earned | 76,785 | 6,381 | - | 83,166 | ||||
Charges and fees | 6,113 | 3,393 | - | 9,506 | ||||
373,381 | 106,322 | - | 479,703 | |||||
Total operating expenses before | ||||||||
depreciation and amortization | 186,844 | 50,428 | 39,301 | 276,573 | ||||
Depreciation and amortization | ||||||||
Depreciation and amortization of lease assets, property and equipment and intangible assets | 5,484 | 27,903 | 2,590 | 35,977 | ||||
Depreciation of right-of-use assets | 5,691 | 5,595 | 708 | 11,994 | ||||
11,175 | 33,498 | 3,298 | 47,971 | |||||
Segment operating income (loss) | 175,362 | 22,396 | (42,599 | ) | 155,159 | |||
Other income | ||||||||
Unrealized fair value gain on investment | 5,700 | |||||||
Finance costs | ||||||||
Interest expense and amortization of deferred financing charges | 39,624 | |||||||
Interest expense on lease liabilities | 2,025 | |||||||
41,649 | ||||||||
Income before income taxes | 119,210 | |||||||
Income taxes | 31,616 | |||||||
Net Income | 87,594 | |||||||
Diluted earnings per share | 5.64 | |||||||
Nine Months Ended | ||||||||
($ in 000's except earnings per share) | easyfinancial | easyhome | Corporate | Total | ||||
Revenue | ||||||||
Interest income | 241,321 | 8,273 | - | 249,594 | ||||
Lease revenue | - | 84,968 | - | 84,968 | ||||
Commissions earned | 92,029 | 6,312 | - | 98,341 | ||||
Charges and fees | 6,853 | 4,091 | - | 10,944 | ||||
340,203 | 103,644 | - | 443,847 | |||||
Total operating expenses before | ||||||||
depreciation and amortization | 194,294 | 49,944 | 29,198 | 273,436 | ||||
Depreciation and amortization | ||||||||
Depreciation and amortization of lease assets, property and equipment and intangible assets | 5,389 | 29,383 | 2,063 | 36,835 | ||||
Depreciation of right-of-use-assets | 4,728 | 5,978 | 560 | 11,266 | ||||
10,117 | 35,361 | 2,623 | 48,101 | |||||
Segment operating income (loss) | 135,792 | 18,339 | (31,821 | ) | 122,310 | |||
Finance costs | ||||||||
Interest expense and amortization of deferred financing charges | 40,350 | |||||||
Interest expense on lease liabilities | 1,808 | |||||||
42,158 | ||||||||
Income before income taxes | 80,152 | |||||||
Income taxes | 22,486 | |||||||
Net Income | 57,666 | |||||||
Diluted earnings per share | 3.72 | |||||||
Summary of Financial Results and Key Performance Indicators | ||||||||
($ in 000’s except earnings per share and percentages) | Three Months Ended | Variance | Variance | |||||
$ / bps | % change | |||||||
Summary Financial Results | ||||||||
Revenue | 161,824 | 156,133 | 5,691 | 3.6 | % | |||
Operating expenses before depreciation and amortization | 88,853 | 97,781 | (8,928 | ) | (9.1 | %) | ||
EBITDA | 65,970 | 49,329 | 16,641 | 33.7 | % | |||
EBITDA margin | 40.8 | % | 31.6 | % | 920 bps | 29.1 | % | |
Depreciation and amortization expense | 16,025 | 15,783 | 242 | 1.5 | % | |||
Operating income | 56,946 | 42,569 | 14,377 | 33.8 | % | |||
Operating margin | 35.2 | % | 27.3 | % | 790 bps | 28.9 | % | |
Other income1 | 1,700 | - | 1,700 | 100.0 | % | |||
Finance costs | 13,233 | 14,821 | (1,588 | ) | (10.7 | %) | ||
Effective income tax rate | 27.2 | % | 28.6 | % | (140 bps) | (4.9 | %) | |
Net income | 33,073 | 19,825 | 13,248 | 66.8 | % | |||
Diluted earnings per share | 2.09 | 1.28 | 0.81 | 63.3 | % | |||
Return on equity | 34.7 | % | 24.1 | % | 1,060 bps | 44.0 | % | |
Adjusted (Normalized) Financial Results1 | ||||||||
Adjusted EBITDA | 64,270 | 49,329 | 14,941 | 30.3 | % | |||
Adjusted EDITDA margin | 39.7 | % | 31.6 | % | 810 bps | 25.6 | % | |
Adjusted net income | 31,598 | 19,825 | 11,773 | 59.4 | % | |||
Adjusted diluted earnings per share | 2.00 | 1.28 | 0.72 | 56.3 | % | |||
Adjusted return on equity | 33.1 | % | 24.1 | % | 900 bps | 37.3 | % | |
Key Performance Indicators | ||||||||
Same store revenue growth (overall) | 3.1 | % | 20.4 | % | (1,730 bps) | (84.8 | %) | |
Same store revenue growth (easyhome) | 7.2 | % | 2.4 | % | 480 bps | 200.0 | % | |
Segment Financials | ||||||||
easyfinancial revenue | 125,856 | 122,256 | 3,600 | 2.9 | % | |||
easyfinancial operating margin | 50.7 | % | 38.9 | % | 1,180 bps | 30.3 | % | |
easyhome revenue | 35,968 | 33,877 | 2,091 | 6.2 | % | |||
easyhome operating margin | 21.9 | % | 16.6 | % | 530 bps | 31.9 | % | |
Portfolio Indicators | ||||||||
Gross consumer loans receivable | 1,182,801 | 1,035,596 | 147,205 | 14.2 | % | |||
Growth in consumer loans receivable | 48,319 | 75,888 | (27,569 | ) | (36.3 | %) | ||
Gross loan originations | 286,583 | 286,068 | 515 | 0.2 | % | |||
Total yield on consumer loans (including ancillary products) | 45.1 | % | 50.1 | % | (500 bps) | (10.0 | %) | |
Net charge-offs as a percentage of average gross consumer loans receivable | 7.8 | % | 13.2 | % | (540 bps) | (40.9 | %) | |
Potential monthly lease revenue | 8,256 | 8,432 | (176 | ) | (2.1 | %) | ||
1During the third quarter of 2020, the Company recognized an unrealized fair value gain before-tax of | ||||||||
($ in 000’s except earnings per share and percentages) | Nine Months Ended | Variance | Variance | |||||
$ / bps | % change | |||||||
Summary Financial Results | ||||||||
Revenue | 479,703 | 443,847 | 35,856 | 8.1 | % | |||
Operating expenses before depreciation and amortization | 276,573 | 273,436 | 3,137 | 1.1 | % | |||
EBITDA | 182,040 | 142,360 | 39,680 | 27.9 | % | |||
EBITDA margin | 37.9 | % | 32.1 | % | 580 bps | 18.1 | % | |
Depreciation and amortization expense | 47,971 | 48,101 | (130 | ) | (0.3 | %) | ||
Operating income | 155,159 | 122,310 | 32,849 | 26.9 | % | |||
Operating margin | 32.3 | % | 27.6 | % | 470 bps | 17.0 | % | |
Other income1 | 5,700 | - | 5,700 | 100.0 | % | |||
Finance costs | 41,649 | 42,158 | (509 | ) | (1.2 | %) | ||
Effective income tax rate | 26.5 | % | 28.1 | % | (160 bps) | (5.7 | %) | |
Net income | 87,594 | 57,666 | 29,928 | 51.9 | % | |||
Diluted earnings per share | 5.64 | 3.72 | 1.92 | 51.6 | % | |||
Return on equity | 32.3 | % | 24.5 | % | 780 bps | 31.8 | % | |
Adjusted (Normalized) Financial Results1 | ||||||||
Adjusted EBITDA | 176,340 | 142,360 | 33,980 | 23.9 | % | |||
Adjusted EBITDA margin | 36.8 | % | 32.1 | % | 470 bps | 14.6 | % | |
Adjusted net income | 82,649 | 57,666 | 24,983 | 43.3 | % | |||
Adjusted diluted earnings per share | 5.33 | 3.72 | 1.61 | 43.3 | % | |||
Adjusted return on equity | 30.5 | % | 24.5 | % | 600 bps | 24.5 | % | |
Key Performance Indicators | ||||||||
Same store revenue growth (overall) | 7.8 | % | 19.8 | % | (1,200 bps) | (60.6 | %) | |
Same store revenue growth (easyhome) | 3.2 | % | 3.4 | % | (20 bps) | (5.9 | %) | |
Segment Financials | ||||||||
easyfinancial revenue | 373,381 | 340,203 | 33,178 | 9.8 | % | |||
easyfinancial operating margin | 47.0 | % | 39.9 | % | 710 bps | 17.8 | % | |
easyhome revenue | 106,322 | 103,644 | 2,678 | 2.6 | % | |||
easyhome operating margin | 21.1 | % | 17.7 | % | 340 bps | 19.2 | % | |
Portfolio Indicators | ||||||||
Gross consumer loans receivable | 1,182,801 | 1,035,596 | 147,205 | 14.2 | % | |||
Growth in consumer loans receivable | 72,168 | 201,817 | (129,649 | ) | (64.2 | %) | ||
Gross loan originations | 699,028 | 781,861 | (82,833 | ) | (10.6 | %) | ||
Total yield on consumer loans (including ancillary products) | 45.2 | % | 50.2 | % | (500 bps) | (10.0 | %) | |
Net charge-offs as a percentage of average gross consumer loans receivable | 10.3 | % | 13.3 | % | (300 bps) | (22.6 | %) | |
Potential monthly lease revenue | 8,256 | 8,432 | (176 | ) | (2.1 | %) | ||
1During the nine-month period ended | ||||||||
Source: goeasy Ltd.
2020 GlobeNewswire, Inc., source