Despite the first quarter being seasonally challenging, we were able to, for the first time in my tenure, achieve net customer growth and rental unit growth
David Ingram, President and CEO, easyhome

All stakeholders in easyhome-customers, employees and shareholders, will continue to benefit from the Company's long-term growth strategy
Donald K. Johnson, Chairman of the Board. easyhome

easyhome (EH.TO) Canada's largest rent to own company, today announced record quarterly revenue for the first quarter ended March 31, 2005.

easyhome increased revenue for the first quarter to $24 million, the seventh consecutive quarterly record for the Company and an increase of 15% from $20.9 million a year ago. Same store revenue growth (revenue from stores open for the comparable periods) was 7.3% for the quarter, building on the 8.7% increase in the comparable period last year. An increased customer base accounted for all of the growth in the rental agreement portfolio.

Operating income (earnings before interest and income taxes) for the quarter increased to $2.8 million compared with $2.5 million during the same quarter last year, an increase of 10.5%. Operating income did not increase proportionately to the increase in revenue, primarily because of the expansion of new stores which, for those open less than 12 months (16), contributed $1.3 million of revenue to the first quarter and had losses of $120,000. While the new stores have performed ahead of expectations and should produce improved margins, there is a short-term drag for the first year of operation. The Company also incurred non-recurring professional fees of $245,000. If adjusted to account for the above-mentioned items, we would yield an operating income percentage of 13.7% which is 1.7% higher than last year.

Income before taxes increased to $2.7 million from $2.4 million, an increase of 13.3%.

Net income for the quarter was $1.7 million or $0.25 per diluted share, compared with $1.5 million, or $0.23 per diluted share in the first quarter of last year.

Commenting on the results, David Ingram, President and CEO said, "We are pleased with our continued strong performance which has resulted in 42 consecutive months of comparable revenue growth. Despite the first quarter being seasonally challenging, we were able to, for the first time in my tenure, achieve net customer growth and rental unit growth."

Mr. Ingram added, "Five new locations were added in the first quarter and we remain focused on our growth plan for a minimum of 21 additions in total for 2005. This, when combined with a monthly rental revenue portfolio which is $939,000 higher than one year ago, will ensure we should continue strong revenue growth for the balance of the year."

Donald K. Johnson, Chairman of the Board, commented, "Management continues its effective execution of the strategic plan, growing the customer base and opening new stores on an aggressive but disciplined program. The success of the plan is reflected in the growth in revenues and same store revenue growth. All stakeholders in easyhome-customers, employees and shareholders, will continue to benefit from the Company's long-term growth strategy."

easyhome operates 147 rent to own locations in Canada.