goeasy Ltd. Reports Record Results for the Fourth Quarter and Full Year
Loan Portfolio of
Adjusted Quarterly Diluted Earnings per Share of
Adjusted Annual Net Income of
Adjusted Annual Diluted Earnings per Share of
Annual Dividend per Share Increased to
Fourth Quarter Results
The Company continued to experience an improving level of loan originations, complemented by strong credit performance, leading to record financial results.
During the quarter, the Company generated a record
During the quarter, the Company also continued to experience strong credit and payment performance. The net charge-off rate for the fourth quarter was 9.0%, compared to 13.3% in the fourth quarter of 2019. Although the Company has experienced an overall improvement in the underlying credit performance of its consumer loan portfolio, the exact timing and pace of an economic recovery remains uncertain. As such, the Company held its allowance for future credit losses broadly flat at 10.08%, versus 10.03% in the third quarter.
Improved operating leverage and lower credit losses, led to record operating income of
Net income in the fourth quarter was a record
“It was a strong finish to 2020, in a year that highlighted the resilience of our customer, our team and our business model. Loan originations during the quarter lifted above prior year levels, leading to
Other Key Fourth Quarter Highlights
easyfinancial
- Record revenue of
$137 million , up 5% - Secured loan portfolio grew to
$155 million , up 34%, - 51% of net loan advances in the quarter were issued to new customers, down from 62%
- 51% of applications were acquired online, up slightly from 50%
- Average loan book per branch improved to
$3.8 million , an increase of 4% - The delinquency rate on the final Saturday of the quarter was 5.1%, flat to 5.1%
- Record operating income of
$67.2 million , up 26% - Operating margin of 49.2%, up from 41%
easyhome
- Record revenue of
$36.7 million , up 3% - Same store revenue growth of 4.4%
- Consumer loan portfolio within easyhome stores increased to
$50.3 million , up 32% - Revenue from consumer lending increased to
$6.2 million , up 22% - Record operating income of
$8.6 million , up 32% - Record operating margin of 23.6%, up from 18.3%
Overall
- 43rd consecutive quarter of same store sales growth
- 78th consecutive quarter of positive net income
- 2021 will mark the 17th consecutive year of paying dividends and 7th consecutive year of dividend increases
- Total same store revenue growth of 4.2%
$50.3 million in loan protection claims payments, up 155% from$19.7 million in 2019- Adjusted return on equity of 32.8% in the quarter, up from 27%
- Fully drawn weighted average cost of borrowing reduced to 4.8%, down from 5.5%
- Net external debt to net capitalization of 64% on
December 31, 2020 , down from 71% in the prior year and below the Company’s target leverage ratio of 70% - 79,860 common shares repurchased during the quarter at a weighted average price of
$68.44 , through the Company’s NCIB, bringing total share repurchases in 2020 to 767,855 at a weighted average price of$55.18 - No reduction of personnel during COVID-19 and a decline in employee turnover of almost 10%
- Annual employee engagement score improved to record level of 83%, up 2% over the prior year
Full Year Results
For the full year of 2020, the Company funded
After adjusting for a
Balance Sheet and Liquidity
Total assets were
During the quarter, the Company completed the establishment of a new
In
Subsequent to quarter-end, the Company entered into a 6-month total return swap agreement (the "TRS") to substantively hedge its market exposure related to its 655,416 common shares held in Affirm, which represents the non-contingent portion of the equity consideration received, pursuant to the sale of its investment in PayBright. The TRS effectively results in the economic value of the Company’s investment in Affirm shares being settled in cash at maturity for
Cash provided by operating activities before net growth in gross consumer loans receivable and purchase of lease assets was
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
Future Outlook
The Company has provided a new 3-year forecast for the years 2021 through 2023. The periods of 2021 and 2022 have been updated to reflect the most recent outlook. The Company continues to pursue a long-term strategy that includes expanding its product range, developing its channels of distribution and leveraging risk-based pricing offers, which increase the average loan size and extend the life of its customer relationships. As such, the total yield earned on its consumer loan portfolio will gradually decline, while net charge-off rates moderate and operating margins expand. The forecasts outlined below contemplate the Company’s expected domestic organic growth plan and do not include the impact of any mergers or acquisitions, or the associated gains or losses associated with its investments.
2021 Forecast | 2022 Forecast | 2023 Forecast | |
Gross Loan Receivable Portfolio at Year End | |||
New easyfinancial locations | 20 - 25 | 15 - 20 | 10 - 15 |
easyfinancial Total Revenue Yield | 44% - 46% | 42% - 44% | 41% - 43% |
Total Revenue Growth | 12.5% - 14.5% | 11% - 13% | 10.5% - 12.5% |
Net charge-off Rate (Average Receivables) | 10.5% - 12.5% | 10.5% - 12.5% | 10.5% - 12.5% |
Total Company Operating Margin | 30% - 33% | 31% - 34% | 32% - 35% |
Return on Equity | 25%+ | 25%+ | 25%+ |
Cash Provided by Operating Activities before Net Growth in Gross Consumer Loans Receivable | - |
- |
- |
Net Debt to Total Capitalization | 63% - 65% | 62% - 64% | 60% - 62% |
“We continue to see positive trends in the business and remain confident in navigating through a second wave of the pandemic. Looking forward, we are well positioned to capture the demand for consumer credit that will be fueled by an economic recovery. Our updated three-year forecast reflects growing our consumer loan portfolio to approximately
Dividend
Based on its 2020 adjusted earnings and the Company’s confidence in its continued growth and access to capital going forward, the Board of Directors has approved an increase to the annual dividend from $1.80 per share to $2.64 per share, an increase of 47%. This year marks the 7th consecutive year of an increase in the dividend to shareholders. As such, the Board of Directors has approved a quarterly dividend of $0.66 per share payable on April 9, 2021 to the holders of common shares of record as at the close of business on March 26, 2021.
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 $3.5 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
Senior Vice President, Corporate Development & Investor Relations
(905) 272-2788
goeasy Ltd. | |||||
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | |||||
(expressed in thousands of Canadian dollars) | |||||
As At | As At | ||||
2020 |
2019 |
||||
ASSETS | |||||
Cash | 93,053 | 46,341 | |||
Amounts receivable | 9,779 | 18,482 | |||
Prepaid expenses | 13,005 | 7,077 | |||
Consumer loans receivable, net | 1,152,378 | 1,040,552 | |||
Investment | 56,040 | 34,300 | |||
Lease assets | 49,384 | 48,696 | |||
Property and equipment, net | 31,322 | 23,007 | |||
Deferred tax assets | 4,066 | 14,961 | |||
Intangible assets, net | 25,244 | 17,749 | |||
Right-of-use assets, net | 46,335 | 46,147 | |||
21,310 | 21,310 | ||||
TOTAL ASSETS | 1,501,916 | 1,318,622 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Liabilities | |||||
Revolving credit facility | 198,339 | 112,563 | |||
Accounts payable and accrued liabilities | 46,065 | 41,350 | |||
Income taxes payable | 13,897 | 4,187 | |||
Dividends payable | 6,661 | 4,448 | |||
Unearned revenue | 10,622 | 8,082 | |||
Derivative financial liabilities | 36,910 | 16,435 | |||
Lease liabilities | 53,902 | 52,573 | |||
Accrued interest | 2,598 | 4,358 | |||
Convertible debentures | - | 40,656 | |||
Notes payable | 689,410 | 701,549 | |||
TOTAL LIABILITIES | 1,058,404 | 986,201 | |||
Shareholders' equity | |||||
Share capital | 181,753 | 141,956 | |||
Contributed surplus | 19,732 | 20,296 | |||
Accumulated other comprehensive loss | (5,280 | ) | (915 | ) | |
Retained earnings | 247,307 | 171,084 | |||
TOTAL SHAREHOLDERS' EQUITY | 443,512 | 332,421 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 1,501,916 | 1,318,622 | |||
goeasy Ltd. | |||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||
(expressed in thousands of Canadian dollars except earnings per share) | |||||||
Three Months Ended | Year Ended | ||||||
2020 | 2019 | 2020 | 2019 | ||||
REVENUE | |||||||
Interest income | 106,784 | 96,403 | 409,583 | 345,997 | |||
Lease revenue | 28,564 | 28,268 | 112,796 | 113,236 | |||
Commissions earned | 34,747 | 37,169 | 117,913 | 135,510 | |||
Charges and fees | 3,124 | 3,696 | 12,630 | 14,640 | |||
173,219 | 165,536 | 652,922 | 609,383 | ||||
EXPENSES BEFORE DEPRECIATION AND AMORTIZATION | |||||||
Salaries and benefits | 34,023 | 31,166 | 136,306 | 120,414 | |||
Stock-based compensation | 1,988 | 2,858 | 7,575 | 8,686 | |||
Advertising and promotion | 8,591 | 7,488 | 26,786 | 26,699 | |||
Bad debts | 34,493 | 43,257 | 134,998 | 156,742 | |||
Occupancy | 5,375 | 5,484 | 22,501 | 20,573 | |||
Technology costs | 3,692 | 3,222 | 14,191 | 12,293 | |||
Other expenses | 7,028 | 9,315 | 29,406 | 30,819 | |||
95,190 | 102,790 | 371,763 | 376,226 | ||||
DEPRECIATION AND AMORTIZATION | |||||||
Depreciation of lease assets | 8,980 | 9,351 | 35,770 | 37,402 | |||
Depreciation of right-of-use assets | 4,189 | 3,933 | 16,183 | 15,199 | |||
Depreciation of property and equipment | 1,509 | 1,624 | 5,997 | 6,281 | |||
Amortization of intangible assets | 2,074 | 1,355 | 6,773 | 5,482 | |||
16,752 | 16,263 | 64,723 | 64,364 | ||||
TOTAL OPERATING EXPENSES | 111,942 | 119,053 | 436,486 | 440,590 | |||
OPERATING INCOME | 61,277 | 46,483 | 216,436 | 168,793 | |||
OTHER INCOME | |||||||
Unrealized fair value gain on investment | 16,040 | - | 21,740 | - | |||
FINANCE COSTS | |||||||
Interest expense and amortization of deferred financing charges | 12,624 | 14,744 | 52,248 | 55,094 | |||
Interest expense on lease liabilities | 719 | 656 | 2,744 | 2,464 | |||
Refinancing cost relating to notes payable | - | 21,723 | - | 21,723 | |||
13,343 | 37,123 | 54,992 | 79,281 | ||||
INCOME BEFORE INCOME TAXES | 63,974 | 9,360 | 183,184 | 89,512 | |||
INCOME TAX EXPENSE (RECOVERY) | |||||||
Current | 9,753 | 5,812 | 33,041 | 27,763 | |||
Deferred | 5,310 | (3,135 | ) | 13,638 | (2,600 | ) | |
15,063 | 2,677 | 46,679 | 25,163 | ||||
NET INCOME | 48,911 | 6,683 | 136,505 | 64,349 | |||
BASIC EARNINGS PER SHARE | 3.24 | 0.46 | 9.21 | 4.40 | |||
DILUTED EARNINGS PER SHARE | 3.14 | 0.46 | 8.76 | 4.17 | |||
Segmented Reporting | ||||||||
Three Months Ended |
||||||||
($ in 000's except earnings per share) | easyfinancial | easyhome | Corporate | Total | ||||
Revenue | ||||||||
Interest income | 101,967 | 4,817 | - | 106,784 | ||||
Lease revenue | - | 28,564 | - | 28,564 | ||||
Commissions earned | 32,461 | 2,286 | - | 34,747 | ||||
Charges and fees | 2,095 | 1,029 | - | 3,124 | ||||
136,523 | 36,696 | - | 173,219 | |||||
Total operating expenses before | ||||||||
depreciation and amortization | 65,053 | 16,833 | 13,304 | 95,190 | ||||
Depreciation and amortization | ||||||||
Depreciation and amortization of lease assets, property and equipment and intangible assets | 2,181 | 9,306 | 1,076 | 12,563 | ||||
Depreciation of right-of-use assets | 2,062 | 1,894 | 233 | 4,189 | ||||
4,243 | 11,200 | 1,309 | 16,752 | |||||
Segment operating income (loss) | 67,227 | 8,663 | (14,613 | ) | 61,277 | |||
Other income | ||||||||
Unrealized fair value gain on investment | 16,040 | |||||||
Finance costs | ||||||||
Interest expense and amortization of deferred financing charges | 12,624 | |||||||
Interest expense on lease liabilities | 719 | |||||||
13,343 | ||||||||
Income before income taxes | 63,974 | |||||||
Income taxes | 15,063 | |||||||
Net Income | 48,911 | |||||||
Diluted earnings per share | 3.14 | |||||||
Three Months Ended |
||||||||
($ in 000's except earnings per share) | easyfinancial | easyhome | Corporate | Total | ||||
Revenue | ||||||||
Interest income | 92,803 | 3,600 | - | 96,403 | ||||
Lease revenue | - | 28,268 | - | 28,268 | ||||
Commissions earned | 34,777 | 2,392 | - | 37,169 | ||||
Charges and fees | 2,425 | 1,271 | - | 3,696 | ||||
130,005 | 35,531 | - | 165,536 | |||||
Total operating expenses before | ||||||||
depreciation and amortization | 73,062 | 17,309 | 12,419 | 102,790 | ||||
Depreciation and amortization | ||||||||
Depreciation and amortization of lease assets, property and equipment and intangible assets | 1,805 | 9,757 | 768 | 12,330 | ||||
Depreciation of right-of-use-assets | 1,793 | 1,965 | 175 | 3,933 | ||||
3,598 | 11,722 | 943 | 16,263 | |||||
Segment operating income (loss) | 53,345 | 6,500 | (13,362 | ) | 46,483 | |||
Finance costs | ||||||||
Interest expense and amortization of deferred financing charges | 14,744 | |||||||
Interest expense on lease liabilities | 656 | |||||||
Refinancing cost relating to notes payable | 21,723 | |||||||
37,123 | ||||||||
Income before income taxes | 9,360 | |||||||
Income taxes | 2,677 | |||||||
Net Income | 6,683 | |||||||
Diluted earnings per share | 0.46 | |||||||
Year Ended |
||||||||
($ in 000's except earnings per share) | easyfinancial | easyhome | Corporate | Total | ||||
Revenue | ||||||||
Interest income | 392,450 | 17,133 | - | 409,583 | ||||
Lease revenue | - | 112,796 | - | 112,796 | ||||
Commissions earned | 109,246 | 8,667 | - | 117,913 | ||||
Charges and fees | 8,208 | 4,422 | - | 12,630 | ||||
509,904 | 143,018 | - | 652,922 | |||||
Total operating expenses before | ||||||||
depreciation and amortization | 251,897 | 67,261 | 52,605 | 371,763 | ||||
Depreciation and amortization | ||||||||
Depreciation and amortization of lease assets, property and equipment and intangible assets | 7,665 | 37,209 | 3,666 | 48,540 | ||||
Depreciation of right-of-use assets | 7,753 | 7,489 | 941 | 16,183 | ||||
15,418 | 44,698 | 4,607 | 64,723 | |||||
Segment operating income (loss) | 242,589 | 31,059 | (57,212 | ) | 216,436 | |||
Other income | ||||||||
Unrealized fair value gain on investment | 21,740 | |||||||
Finance costs | ||||||||
Interest expense and amortization of deferred financing charges | 52,248 | |||||||
Interest expense on lease liabilities | 2,744 | |||||||
54,992 | ||||||||
Income before income taxes | 183,184 | |||||||
Income taxes | 46,679 | |||||||
Net Income | 136,505 | |||||||
Diluted earnings per share | 8.76 | |||||||
Year Ended |
||||||||
($ in 000's except earnings per share) | easyfinancial | easyhome | Corporate | Total | ||||
Revenue | ||||||||
Interest income | 334,124 | 11,873 | - | 345,997 | ||||
Lease revenue | - | 113,236 | - | 113,236 | ||||
Commissions earned | 126,806 | 8,704 | - | 135,510 | ||||
Charges and fees | 9,278 | 5,362 | - | 14,640 | ||||
470,208 | 139,175 | - | 609,383 | |||||
Total operating expenses before | ||||||||
depreciation and amortization | 267,356 | 67,253 | 41,617 | 376,226 | ||||
Depreciation and amortization | ||||||||
Depreciation and amortization of lease assets, property and equipment and intangible assets | 7,194 | 39,140 | 2,831 | 49,165 | ||||
Depreciation of right-of-use-assets | 6,521 | 7,943 | 735 | 15,199 | ||||
13,715 | 47,083 | 3,566 | 64,364 | |||||
Segment operating income (loss) | 189,137 | 24,839 | (45,183 | ) | 168,793 | |||
Finance costs | ||||||||
Interest expense and amortization of deferred financing charges | 55,094 | |||||||
Interest expense on lease liabilities | 2,464 | |||||||
Refinancing cost relating to notes payable | 21,723 | |||||||
79,281 | ||||||||
Income before income taxes | 89,512 | |||||||
Income taxes | 25,163 | |||||||
Net Income | 64,349 | |||||||
Diluted earnings per share | 4.17 | |||||||
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 | 173,219 | 165,536 | 7,683 | 4.6 | % | ||||
Operating expenses before depreciation and amortization | 95,190 | 102,790 | (7,600 | ) | (7.4 | %) | |||
EBITDA | 85,089 | 53,395 | 31,694 | 59.4 | % | ||||
EBITDA margin | 49.1 | % | 32.3 | % | 1,680 bps | 52.0 | % | ||
Depreciation and amortization expense | 16,752 | 16,263 | 489 | 3.0 | % | ||||
Operating income | 61,277 | 46,483 | 14,794 | 31.8 | % | ||||
Operating margin | 35.4 | % | 28.1 | % | 730 bps | 26.0 | % | ||
Other income1 | 16,040 | - | 16,040 | 100.0 | % | ||||
Interest expense and amortization of deferred financing charges and interest expense on lease liabilities | 13,343 | 15,400 | (2,057 | ) | (13.4 | %) | |||
Refinancing costs2 | - | 21,723 | (21,723 | ) | (100.0 | %) | |||
Effective income tax rate | 23.5 | % | 28.6 | % | (510 bps) | (17.8 | %) | ||
Net income | 48,911 | 6,683 | 42,228 | 631.9 | % | ||||
Diluted earnings per share | 3.14 | 0.46 | 2.68 | 582.6 | % | ||||
Return on equity | 45.8 | % | 8.0 | % | 3,780 bps | 472.5 | % | ||
Adjusted (Normalized) Financial Results1,2 | |||||||||
Adjusted EBITDA | 69,049 | 53,395 | 15,654 | 29.3 | % | ||||
Adjusted EDITDA margin | 39.9 | % | 32.3 | % | 760 bps | 23.5 | % | ||
Adjusted net income | 34,996 | 22,649 | 12,347 | 54.5 | % | ||||
Adjusted diluted earnings per share | 2.24 | 1.45 | 0.79 | 54.5 | % | ||||
Adjusted return on equity | 32.8 | % | 27.0 | % | 580 bps | 21.5 | % | ||
Key Performance Indicators | |||||||||
Same store revenue growth (overall) | 4.2 | % | 19.7 | % | (1,550 bps) | (78.7 | %) | ||
Same store revenue growth (easyhome) | 4.4 | % | 6.2 | % | (180 bps) | (29.0 | %) | ||
Segment Financials | |||||||||
easyfinancial revenue | 136,523 | 130,005 | 6,518 | 5.0 | % | ||||
easyfinancial operating margin | 49.2 | % | 41.0 | % | 820 bps | 20.0 | % | ||
easyhome revenue | 36,696 | 35,531 | 1,165 | 3.3 | % | ||||
easyhome operating margin | 23.6 | % | 18.3 | % | 530 bps | 29.0 | % | ||
Portfolio Indicators | |||||||||
Gross consumer loans receivable | 1,246,840 | 1,110,633 | 136,207 | 12.3 | % | ||||
Growth in consumer loans receivable | 64,039 | 75,037 | (10,998 | ) | (14.7 | %) | |||
Gross loan originations | 334,102 | 313,514 | 20,588 | 6.6 | % | ||||
Total yield on consumer loans (including ancillary products) | 46.6 | % | 49.8 | % | (320 bps) | (6.4 | %) | ||
Net charge-offs as a percentage of average gross consumer loans receivable | 9.0 | % | 13.3 | % | (430 bps) | (32.3 | %) | ||
Cash provided by operating activities before net growth in gross consumer loans receivable | 40,980 | 21,703 | 19,277 | 88.8 | % | ||||
Potential monthly lease revenue | 8,461 | 8,643 | (182 | ) | (2.1 | %) | |||
1During the fourth quarter of 2020, the Company recognized |
|||||||||
2During the fourth quarter of 2019, the Company repaid its 2022 Notes incurring a |
|||||||||
($ in 000’s except earnings per share and percentages) | Year Ended | Variance | Variance | ||||||
$ / bps | % change | ||||||||
Summary Financial Results | |||||||||
Revenue | 652,922 | 609,383 | 43,539 | 7.1 | % | ||||
Operating expenses before depreciation and amortization | 371,763 | 376,226 | (4,463 | ) | (1.2 | %) | |||
EBITDA | 267,129 | 195,755 | 71,374 | 36.5 | % | ||||
EBITDA margin | 40.9 | % | 32.1 | % | 880 bps | 27.4 | % | ||
Depreciation and amortization expense | 64,723 | 64,364 | 359 | 0.6 | % | ||||
Operating income | 216,436 | 168,793 | 47,643 | 28.2 | % | ||||
Operating margin | 33.1 | % | 27.7 | % | 540 bps | 19.5 | % | ||
Other income1 | 21,740 | - | 21,740 | 100.0 | % | ||||
Interest expense and amortization of deferred financing charges and interest expense on lease liabilities | 54,992 | 57,558 | (2,566 | ) | (4.5 | %) | |||
Refinancing costs2 | - | 21,723 | (21,723 | ) | (100.0 | %) | |||
Effective income tax rate | 25.5 | % | 28.1 | % | (260 bps) | (9.3 | %) | ||
Net income | 136,505 | 64,349 | 72,156 | 112.1 | % | ||||
Diluted earnings per share | 8.76 | 4.17 | 4.59 | 110.1 | % | ||||
Return on equity | 36.1 | % | 20.2 | % | 1,590 bps | 78.7 | % | ||
Adjusted (Normalized) Financial Results1,2 | |||||||||
Adjusted EBITDA | 245,389 | 195,755 | 49,634 | 25.4 | % | ||||
Adjusted EBITDA margin | 37.6 | % | 32.1 | % | 550 bps | 17.1 | % | ||
Adjusted net income | 117,646 | 80,315 | 37,331 | 46.5 | % | ||||
Adjusted diluted earnings per share | 7.57 | 5.17 | 2.40 | 46.4 | % | ||||
Adjusted return on equity | 31.1 | % | 25.3 | % | 580 bps | 22.9 | % | ||
Key Performance Indicators | |||||||||
Same store revenue growth (overall) | 6.3 | % | 19.5 | % | (1,320 bps) | (67.7 | %) | ||
Same store revenue growth (easyhome) | 4.5 | % | 4.3 | % | 20 bps | 4.7 | % | ||
Segment Financials | |||||||||
easyfinancial revenue | 509,904 | 470,208 | 39,696 | 8.4 | % | ||||
easyfinancial operating margin | 47.6 | % | 40.2 | % | 740 bps | 18.4 | % | ||
easyhome revenue | 143,018 | 139,175 | 3,843 | 2.8 | % | ||||
easyhome operating margin | 21.7 | % | 17.8 | % | 390 bps | 21.9 | % | ||
Portfolio Indicators | |||||||||
Gross consumer loans receivable | 1,246,840 | 1,110,633 | 136,207 | 12.3 | % | ||||
Growth in consumer loans receivable | 136,207 | 276,854 | (140,647 | ) | (50.8 | %) | |||
Gross loan originations | 1,033,130 | 1,095,375 | (62,245 | ) | (5.7 | %) | |||
Total yield on consumer loans (including ancillary products) | 45.5 | % | 50.1 | % | (460 bps) | (9.2 | %) | ||
Net charge-offs as a percentage of average gross consumer loans receivable | 10.0 | % | 13.3 | % | (330 bps) | (24.8 | %) | ||
Cash provided by operating activities before net growth in gross consumer loans receivable | 210,619 | 120,985 | 89,634 | 74.1 | % | ||||
Potential monthly lease revenue | 8,461 | 8,643 | (182 | ) | (2.1 | %) | |||
1For the year-ended |
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2For the year-ended |
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