We are pleased with the performance of the business as it provided a record quarter for revenues and with the continuing improvement of all the business segments.
David Ingram President and Chief Executive Officer of easyhome

easyhome Ltd. (TSX:EH), Canada's largest rent-to-own company, today announced its results for the first quarter ended March 31, 2010.

For the first quarter of the year, revenues were $44.3 million, a 1.0% increase from the first quarter of 2009. Net income for the quarter was $2.3 million or $0.22 per share compared with $2.4 million or $0.23 per share for the same period last year. Excluding before-tax restructuring charges of $0.3 million recorded in the latest quarter, earnings per share were $0.24 per share, an improvement of $0.01 per share over a year ago.

The first quarter of 2010 marks the second consecutive quarter of significant improvements in sequential earnings per share and additionally demonstrates the resumption of year over year growth in adjusted earnings (net income before restructuring costs).

"We are pleased with the performance of the business as it provided a record quarter for revenues and with the continuing improvement of all the business segments," said David Ingram President and Chief Executive Officer of easyhome. "In particular, easyfinancial services grew revenues to $2.2 million compared with $0.8 million in the same period last year, and up from $1.6 million just last quarter. We also continued to maintain tight controls on easyfinancial's bad debt expense, reducing it to 11.7% of revenues from 15.4% of revenues in the fourth quarter of 2009. We opened six additional easyfinancial kiosks during the quarter and, as a result of the demand for easyfinancial's products and its strong performance, we now plan to open as many as 50 new kiosks in 2010."

Mr. Ingram added, "I am extremely grateful to our staff for their tireless efforts in improving our Company and making these positive strides."

Cash flows provided by operating activities continued to be strong at $4.0 million for the first quarter of 2010 after an investment of $2.8 million to increase easyfinancial's loan portfolio. The Company reduced debt by a total of $1.8 million during the quarter, invested $1.4 million in capital expenditures and distributed $0.9 million to shareholders in dividends.

First Quarter Results

First quarter revenues of $44.3 million increased from $43.9 million in the same period last year, largely as a result of the growth of easyfinancial. Revenues declined in our leasing business and same store revenues were even with the year-earlier quarter.

On a segmented basis, the Company's Canadian leasing operations recorded revenues of $39.8 million in the first quarter of 2010 compared with $41.1 million in the first quarter of 2009.

"The year-over-year lower revenues from our Canadian leasing business are a direct result of the deterioration of our lease portfolio throughout 2009," Mr. Ingram said. "However, our strategy of building on three key business units is now having the intended results as these revenue declines were offset by the strong revenue growth shown by our U.S. leasing operations and easyfinancial Services."

easyhome's U.S. leasing operations contributed $2.3 million in revenues compared with $1.9 million for the same period last year and easyfinancial services generated $2.2 million in revenues compared with $0.8 million one year ago, an increase of 158%.

Operating income was $3.9 million for the first quarter of 2010 compared with $4.4 million in the first quarter of 2009. Excluding restructuring charges, operating income for the quarter was $4.2 million, a decrease of 4.0% over the comparable period of 2009.

Net income was $2.3 million for the quarter, compared with $2.4 million in the first three months of 2009. On a per share basis, earnings were $0.22 compared with $0.23. Excluding restructuring charges, earnings increased to $0.24 per share.

Donald K. Johnson, Chairman of the Board, commented, "The progress that easyhome made during the first quarter has verified the Board's confidence in management's decision to restructure its operations. We are once again encouraged by the Company's performance and its prospects for growth." Mr. Johnson added, "On behalf of the Board of Directors and shareholders of easyhome, I would like to thank Ron Gage, Joe Rotunda, Doug Anderson and Nancie Lataille for their contribution to the Company over the past several years."

The Board of Directors has approved a dividend payment of $0.085 per share payable on July 5th, 2010 to the holders of common shares of record as at the close of business on June 24th, 2010.

As at March 31, 2010, easyhome Ltd. had 243 stores, including 206 Canadian corporate stores, 13 U.S. corporate stores, 17 U.S. franchised stores, and seven Canadian franchised/licensed stores. The company also operated 35 easyfinancial kiosks within existing easyhome stores.