goeasy Ltd. Reports Record Results for the Third Quarter
Loan Portfolio of
Revenue of
Adjusted Operating Income of
Adjusted Quarterly Net Income of
Adjusted Quarterly Diluted Earnings per Share of
Third Quarter Results
During the quarter, the Company generated a record
During the quarter, the Company continued to experience stable credit and payment performance. The net charge off rate for the third quarter was 8.3%, compared to 7.8% in the third quarter of 2020 and 8.2% in the second quarter of 2021. The overall allowance for future credit losses reduced slightly from 7.90% in the prior quarter to 7.83%.
Operating income for the third quarter of 2021 was a record
Net income in the third quarter was
Return on equity during the quarter was 32.7%, compared to 34.7% in the third quarter of 2020. After adjusting for the non-recurring and unusual items previously noted, adjusted return on equity was 24.0% in the quarter, compared to 33.1% in the same period of 2020.
“During the quarter we made significant progress on the integration of LendCare, which is on track to produce the synergies and accretion forecast during our acquisition,” said
Other Key Third Quarter Highlights
easyfinancial
- Revenue of
$182 million , up 45% - 33% of the loan portfolio secured, up from 12%
- 66% of net loan advances in the quarter were issued to new customers, up from 50%
- 41% of applications acquired online, up from 38%
- 25% of new loans issued through point-of-sale financing, up from 18%
- 4% of new loans issued auto financing, a new product category in 2021
- Average loan book per branch improved to
$4.0 million , an increase of 6% - Weighted average interest yield of 33.6%, down from 38.3%
- Record operating income of
$90.6 million , up 42% - Operating margin of 49.7%, down from 50.7%
easyhome
- Record revenue of
$37.6 million , up 5% - Same store revenue growth of 5.6%
- Consumer loan portfolio within easyhome stores increased to
$61.8 million , up 38% - Revenue from consumer lending increased to
$7.9 million , up 43% - Record operating income of
$10.1 million , up 28% - Record operating margin of 26.7%, up from 21.9%
Overall
- 46th consecutive quarter of same store sales growth
- 81st consecutive quarter of positive net income
- 2021 marks the 17th consecutive year of paying dividends and the 7th consecutive year of a dividend increase
- Total same store revenue growth of 15.4%
- Adjusted return on equity of 24.0% in the quarter and adjusted return on tangible common equity of 42.9%
- Fully drawn weighted average cost of borrowing reduced to 4.3%, down from 5.0%
- Net external debt to net capitalization of 62% on
September 30, 2021 , down from 66% in the prior year and below the Company’s target leverage ratio of 70%
Nine Months Results
For the first nine months of 2021, the Company produced record revenues of
Balance Sheet and Liquidity
Total assets were
In
During the quarter, the Company increased its existing revolving securitization warehouse facility to
Cash provided by operating activities before the net growth in gross consumer loans receivable in the quarter was
As of
Future Outlook
The Company has provided 3-year forecasts for the years 2021 through 2023. 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, which increases the average loan size and extends 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 future mergers or acquisitions, or the associated gains or losses associated with its investments.
Forecasts for 2021 | Forecasts for 2022 | Forecasts for 2023 | |
Gross Loan Receivable Portfolio at Year End | |||
New easyfinancial locations | 20 - 25 | 15 - 20 | 10 - 15 |
easyfinancial Total Revenue Yield | 40% - 42% | 36% - 38% | 35% - 37% |
Total Revenue Growth | 24% - 27% | 17% - 20% | 12% - 15% |
Net charge-off Rate (Average Receivables) | 8.5% - 10.5% | 8.5% - 10.5% | 8.0% - 10.0% |
Adjusted Total Company Operating Margin | 35%+ | 36%+ | 37%+ |
Adjusted Return on Equity | 22%+ | 22%+ | 22%+ |
Cash provided by Operating Activities before Net Growth in Gross Consumer Loans Receivable | |||
Net Debt to Net Capitalization | 64% - 66% | 64% - 66% | 63% - 65% |
Dividend
The Board of Directors has approved a quarterly dividend of $0.66 per share payable on January 14, 2022 to the holders of common shares of record as at the close of business on December 31, 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,
Accredited by the
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. | |||||
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | |||||
(Unaudited) | |||||
(expressed in thousands of Canadian dollars) | |||||
As At | As At | ||||
2021 | 2020 | ||||
ASSETS | |||||
Cash | 124,685 | 93,053 | |||
Amounts receivable | 18,057 | 9,779 | |||
Prepaid expenses | 8,668 | 13,005 | |||
Consumer loans receivable, net | 1,780,073 | 1,152,378 | |||
Investments | 64,178 | 56,040 | |||
Lease assets | 44,482 | 49,384 | |||
Property and equipment, net | 34,397 | 31,322 | |||
Deferred tax assets, net | - | 4,066 | |||
Derivative financial assets | 422 | - | |||
Intangible assets, net | 161,189 | 25,244 | |||
Right-of-use assets, net | 54,663 | 46,335 | |||
180,923 | 21,310 | ||||
TOTAL ASSETS | 2,471,737 | 1,501,916 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Liabilities | |||||
Revolving credit facility | 14,339 | 198,339 | |||
Accounts payable and accrued liabilities | 61,433 | 46,065 | |||
Income taxes payable | 22,860 | 13,897 | |||
Dividends payable | 10,888 | 6,661 | |||
Unearned revenue | 9,329 | 10,622 | |||
Accrued interest | 22,968 | 2,598 | |||
Deferred tax liabilities, net | 38,983 | - | |||
Derivative financial liabilities | 19,076 | 36,910 | |||
Lease liabilities | 62,915 | 53,902 | |||
Revolving securitization warehouse facility | 122,648 | - | |||
Secured borrowings | 191,574 | - | |||
Notes payable | 1,087,397 | 689,410 | |||
TOTAL LIABILITIES | 1,664,410 | 1,058,404 | |||
Shareholders' equity | |||||
Share capital | 369,475 | 181,753 | |||
Contributed surplus | 20,518 | 19,732 | |||
Accumulated other comprehensive income (loss) | 6,666 | (5,280 | ) | ||
Retained earnings | 410,668 | 247,307 | |||
TOTAL SHAREHOLDERS' EQUITY | 807,327 | 443,512 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 2,471,737 | 1,501,916 | |||
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 | |||||||
2021 |
2020 | 2021 |
2020 | |||||
REVENUE | ||||||||
Interest income | 146,132 | 101,833 | 380,109 | 302,799 | ||||
Lease revenue | 27,923 | 28,416 | 84,708 | 84,232 | ||||
Commissions earned | 42,052 | 28,540 | 117,824 | 83,166 | ||||
Charges and fees | 3,655 | 3,035 | 9,651 | 9,506 | ||||
219,762 | 161,824 | 592,292 | 479,703 | |||||
EXPENSES BEFORE DEPRECIATION AND AMORTIZATION | ||||||||
Salaries and benefits | 41,776 | 36,457 | 120,986 | 102,283 | ||||
Stock-based compensation | 2,116 | 1,718 | 6,103 | 5,587 | ||||
Advertising and promotion | 7,751 | 7,377 | 20,815 | 18,195 | ||||
Bad debts | 45,297 | 27,221 | 123,444 | 100,505 | ||||
Occupancy | 5,995 | 5,639 | 17,272 | 17,126 | ||||
Technology costs | 4,900 | 3,817 | 12,721 | 10,499 | ||||
Other expenses | 9,852 | 6,624 | 32,356 | 22,378 | ||||
117,687 | 88,853 | 333,697 | 276,573 | |||||
DEPRECIATION AND AMORTIZATION | ||||||||
Depreciation of lease assets | 8,601 | 8,701 | 26,687 | 26,790 | ||||
Depreciation of right-of-use assets | 4,650 | 4,053 | 13,416 | 11,994 | ||||
Amortization of intangible assets | 5,405 | 1,820 | 11,285 | 4,699 | ||||
Depreciation of property and equipment | 2,067 | 1,451 | 5,833 | 4,488 | ||||
20,723 | 16,025 | 57,221 | 47,971 | |||||
TOTAL OPERATING EXPENSES | 138,410 | 104,878 | 390,918 | 324,544 | ||||
OPERATING INCOME | 81,352 | 56,946 | 201,374 | 155,159 | ||||
OTHER INCOME | 23,219 | 1,700 | 106,505 | 5,700 | ||||
FINANCE COSTS | ||||||||
Interest expense and amortization of deferred financing charges | 20,889 | 12,543 | 54,450 | 39,624 | ||||
Interest expense on lease liabilities | 797 | 690 | 2,294 | 2,025 | ||||
21,686 | 13,233 | 56,744 | 41,649 | |||||
INCOME BEFORE INCOME TAXES | 82,885 | 45,413 | 251,135 | 119,210 | ||||
INCOME TAX EXPENSE (RECOVERY) | ||||||||
Current | 25,769 | 9,990 | 58,577 | 23,288 | ||||
Deferred | (6,424 | ) | 2,350 | (2,424 | ) | 8,328 | ||
19,345 | 12,340 | 56,153 | 31,616 | |||||
NET INCOME | 63,540 | 33,073 | 194,982 | 87,594 | ||||
BASIC EARNINGS PER SHARE | 3.79 | 2.20 | 12.15 | 5.95 | ||||
DILUTED EARNINGS PER SHARE | 3.66 | 2.09 | 11.75 | 5.64 | ||||
Segmented Reporting | ||||||||
Three Months Ended |
||||||||
($ in 000's except earnings per share) | easyfinancial1 | easyhome | Corporate | Total | ||||
Revenue | ||||||||
Interest income | 140,266 | 5,866 | - | 146,132 | ||||
Lease revenue | - | 27,923 | - | 27,923 | ||||
Commissions earned | 39,234 | 2,818 | - | 42,052 | ||||
Charges and fees | 2,619 | 1,036 | - | 3,655 | ||||
182,119 | 37,643 | - | 219,762 | |||||
Total operating expenses before | ||||||||
depreciation and amortization | 83,167 | 16,752 | 17,768 | 117,687 | ||||
Depreciation and amortization | ||||||||
Depreciation and amortization of lease assets, property and equipment and intangible assets | 5,880 | 8,912 | 1,281 | 16,073 | ||||
Depreciation of right-of-use assets | 2,512 | 1,924 | 214 | 4,650 | ||||
8,392 | 10,836 | 1,495 | 20,723 | |||||
Segment operating income (loss) | 90,560 | 10,055 | (19,263 | ) | 81,352 | |||
Other income | 23,219 | |||||||
Finance costs | ||||||||
Interest expense and amortization of deferred financing charges | 20,889 | |||||||
Interest expense on lease liabilities | 797 | |||||||
21,686 | ||||||||
Income before income taxes | 82,885 | |||||||
Income taxes | 19,345 | |||||||
Net Income | 63,540 | |||||||
Diluted earnings per share | 3.66 | |||||||
1 LendCare’s financial results are reported under the easyfinancial reporting segment. | ||||||||
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 | 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 | |||||||
Nine Months Ended |
||||||||
($ in 000's except earnings per share) | easyfinancial1 | easyhome | Corporate | Total | ||||
Revenue | ||||||||
Interest income | 363,806 | 16,303 | - | 380,109 | ||||
Lease revenue | - | 84,708 | - | 84,708 | ||||
Commissions earned | 109,809 | 8,015 | - | 117,824 | ||||
Charges and fees | 6,721 | 2,930 | - | 9,651 | ||||
480,336 | 111,956 | - | 592,292 | |||||
Total operating expenses before | ||||||||
depreciation and amortization | 223,784 | 50,143 | 59,770 | 333,697 | ||||
Depreciation and amortization | ||||||||
Depreciation and amortization of lease assets, property and equipment and intangible assets | 12,423 | 27,652 | 3,730 | 43,805 | ||||
Depreciation of right-of-use assets | 7,021 | 5,750 | 645 | 13,416 | ||||
19,444 | 33,402 | 4,375 | 57,221 | |||||
Segment operating income (loss) | 237,108 | 28,411 | (64,145 | ) | 201,374 | |||
Other income | 106,505 | |||||||
Finance costs | ||||||||
Interest expense and amortization of deferred financing charges | 54,450 | |||||||
Interest expense on lease liabilities | 2,294 | |||||||
56,744 | ||||||||
Income before income taxes | 251,135 | |||||||
Income taxes | 56,153 | |||||||
Net Income | 194,982 | |||||||
Diluted earnings per share | 11.75 | |||||||
1 LendCare’s financial results are reported under the easyfinancial reporting segment. | ||||||||
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 | 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 | |||||||
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 | 219,762 | 161,824 | 57,938 | 35.8 | % | |||||
Operating expenses before depreciation and amortization2 | 117,687 | 88,853 | 28,834 | 32.5 | % | |||||
EBITDA1 | 116,693 | 65,970 | 50,723 | 76.9 | % | |||||
EBITDA margin1 | 53.1 | % | 40.8 | % | 1,230 bps | 30.1 | % | |||
Depreciation and amortization expense2 | 20,723 | 16,025 | 4,698 | 29.3 | % | |||||
Operating income | 81,352 | 56,946 | 24,406 | 42.9 | % | |||||
Operating margin1 | 37.0 | % | 35.2 | % | 180 bps | 5.1 | % | |||
Other income2,3 | 23,219 | 1,700 | 21,519 | 1,265.8 | % | |||||
Finance costs | 21,686 | 13,233 | 8,453 | 63.9 | % | |||||
Effective income tax rate | 23.3 | % | 27.2 | % | (390 bps) | (14.3 | %) | |||
Net income | 63,540 | 33,073 | 30,467 | 92.1 | % | |||||
Diluted earnings per share | 3.66 | 2.09 | 1.57 | 75.1 | % | |||||
Return on assets1 | 10.3 | % | 9.7 | % | 60 bps | 6.2 | % | |||
Return on equity1 | 32.7 | % | 34.7 | % | (200 bps) | (5.8 | %) | |||
Return on tangible common equity1 | 58.3 | % | 39.1 | % | 1,920 bps | 49.1 | % | |||
Adjusted Financial Results1,2,3 | ||||||||||
Adjusted operating income | 85,818 | 56,946 | 28,872 | 50.7 | % | |||||
Adjusted operating margin | 39.1 | % | 35.2 | % | 390 bps | 11.1 | % | |||
Adjusted net income | 46,748 | 31,598 | 15,150 | 47.9 | % | |||||
Adjusted diluted earnings per share | 2.70 | 2.00 | 0.70 | 35.0 | % | |||||
Adjusted return on assets | 7.6 | % | 9.3 | % | (170 bps) | (18.3 | %) | |||
Adjusted return on equity | 24.0 | % | 33.1 | % | (910 bps) | (27.5 | %) | |||
Adjusted return on tangible common equity | 42.9 | % | 37.3 | % | 560 bps | 15.0 | % | |||
Key Performance Indicators1 | ||||||||||
Same store revenue growth (overall) | 15.4 | % | 3.1 | % | 1,230 bps | 396.8 | % | |||
Same store revenue growth (easyhome) | 5.6 | % | 7.2 | % | (160 bps) | (22.2 | %) | |||
Segment Financials | ||||||||||
easyfinancial revenue | 182,119 | 125,856 | 56,263 | 44.7 | % | |||||
easyfinancial operating margin | 49.7 | % | 50.7 | % | (100 bps) | (2.0 | %) | |||
easyhome revenue | 37,643 | 35,968 | 1,675 | 4.7 | % | |||||
easyhome operating margin | 26.7 | % | 21.9 | % | 480 bps | 21.9 | % | |||
Portfolio Indicators | ||||||||||
Gross consumer loans receivable | 1,896,716 | 1,182,801 | 713,915 | 60.4 | % | |||||
Growth in consumer loans receivable | 100,872 | 48,319 | 52,553 | 108.8 | % | |||||
Gross loan originations | 436,194 | 286,583 | 149,611 | 52.2 | % | |||||
Total yield on consumer loans (including ancillary products) | 40.8 | % | 45.1 | % | (430 bps) | (9.5 | %) | |||
Net charge offs as a percentage of average gross consumer loans receivable | 8.3 | % | 7.8 | % | 50 bps | 6.4 | % | |||
Cash provided by operating activities before net growth in gross consumer loans receivable | 89,240 | 63,578 | 25,662 | 40.4 | % | |||||
Potential monthly lease revenue | 8,160 | 8,256 | (96 | ) | (1.2 | %) | ||||
1 See description in sections “Portfolio Analysis” and “Key Performance Indicators and Non-IFRS Measures” in 2 During the third quarter of 2021, the Company had a total of - Adjusting items related to the LendCare Acquisition • Transaction costs of • Integration costs related to advisory and consulting costs, employee incentives, representation and warranty insurance cost, and other integration costs related to the Acquisition of LendCare reported under Operating expenses before depreciation and amortization amounting to • Amortization of Adjusting item related to other income • Realized and unrealized fair value gains mainly on investments in Affirm and TRS amounting to 3 During the third quarter of 2020, the Company’s adjusting item includes: • Unrealized fair value gain on investment in PayBright amounting to |
||||||||||
($ in 000’s except earnings per share and percentages) | Nine Months Ended | Variance | Variance | |||||||
$ / bps | % change | |||||||||
Summary Financial Results | ||||||||||
Revenue | 592,292 | 479,703 | 112,589 | 23.5 | % | |||||
Operating expenses before depreciation and amortization2 | 333,697 | 276,573 | 57,124 | 20.7 | % | |||||
EBITDA1 | 338,413 | 182,040 | 156,373 | 85.9 | % | |||||
EBITDA margin1 | 57.1 | % | 37.9 | % | 1,920 bps | 50.7 | % | |||
Depreciation and amortization expense2 | 57,221 | 47,971 | 9,250 | 19.3 | % | |||||
Operating income | 201,374 | 155,159 | 46,215 | 29.8 | % | |||||
Operating margin1 | 34.0 | % | 32.3 | % | 170 bps | 5.3 | % | |||
Other income2,3 | 106,505 | 5,700 | 100,805 | 1,768.5 | % | |||||
Finance costs2 | 56,744 | 41,649 | 15,095 | 36.2 | % | |||||
Effective income tax rate | 22.4 | % | 26.5 | % | (410 bps) | (15.5 | %) | |||
Net income | 194,982 | 87,594 | 107,388 | 122.6 | % | |||||
Diluted earnings per share | 11.75 | 5.64 | 6.11 | 108.3 | % | |||||
Return on assets1 | 12.9 | % | 8.6 | % | 430 bps | 50.0 | % | |||
Return on equity1 | 40.8 | % | 32.3 | % | 850 bps | 26.3 | % | |||
Return on tangible common equity1 | 58.7 | % | 36.5 | % | 2,220 bps | 60.8 | % | |||
Adjusted Financial Results1,2,3 | ||||||||||
Adjusted operating income | 230,299 | 155,159 | 75,140 | 48.4 | % | |||||
Adjusted operating margin | 38.9 | % | 32.3 | % | 660 bps | 20.4 | % | |||
Adjusted net income | 127,114 | 82,649 | 44,465 | 53.8 | % | |||||
Adjusted diluted earnings per share | 7.66 | 5.33 | 2.33 | 43.7 | % | |||||
Adjusted return on assets | 8.4 | % | 8.1 | % | 30 bps | 3.7 | % | |||
Adjusted return on equity | 26.6 | % | 30.5 | % | (390 bps) | (12.8 | %) | |||
Adjusted return on tangible common equity | 38.3 | % | 34.5 | % | 380 bps | 11.0 | % | |||
Key Performance Indicators1 | ||||||||||
Same store revenue growth (overall) | 12.1 | % | 7.8 | % | 430 bps | 55.1 | % | |||
Same store revenue growth (easyhome) | 6.1 | % | 3.2 | % | 290 bps | 90.6 | % | |||
Segment Financials | ||||||||||
easyfinancial revenue | 480,336 | 373,381 | 106,955 | 28.6 | % | |||||
easyfinancial operating margin | 49.4 | % | 47.0 | % | 240 bps | 5.1 | % | |||
easyhome revenue | 111,956 | 106,322 | 5,634 | 5.3 | % | |||||
easyhome operating margin | 25.4 | % | 21.1 | % | 430 bps | 20.4 | % | |||
Portfolio Indicators | ||||||||||
Gross consumer loans receivable | 1,896,716 | 1,182,801 | 713,915 | 60.4 | % | |||||
Growth in consumer loans receivable4 | 649,876 | 72,168 | 577,708 | 800.5 | % | |||||
Gross loan originations | 1,087,627 | 699,028 | 388,599 | 55.6 | % | |||||
Total yield on consumer loans (including ancillary products) | 42.4 | % | 45.2 | % | (280 bps) | (6.2 | %) | |||
Net charge offs as a percentage of average gross consumer loans receivable | 8.5 | % | 10.3 | % | (180 bps) | (17.5 | %) | |||
Cash provided by operating activities before net growth in gross consumer loans receivable | 200,652 | 169,639 | 31,013 | 18.3 | % | |||||
Potential monthly lease revenue | 8,160 | 8,256 | (96 | ) | (1.2 | %) | ||||
1 See description in sections “Portfolio Analysis” and “Key Performance Indicators and Non-IFRS Measures” in 2 During the nine-month period ended Adjusting items related to the LendCare Acquisition • Transaction costs of • Integration costs related to advisory and consulting costs, employee incentives, representation and warranty insurance cost, and other integration costs related to the Acquisition of LendCare reported under Operating expenses before depreciation and amortization amounting to • Bad debt expense related to the day one loan loss provision on the acquired loan portfolio from LendCare amounting to • Amortization of Adjusting item related to other income • Realized and unrealized fair value gains mainly on investments in Affirm and TRS amounting to 3 During the nine-month period ended • Unrealized fair value gain on investment in PayBright amounting to 4 Growth in consumer loan receivable during the period includes gross loan purchased through the LendCare Acquisition amounting to |
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