It was a great quarter that exceeded expectations and resulted in each business segment improving their comparable operating income.
David Ingram, President and CEO, easyhome

easyhome Ltd. (TSX:EH), Canada's largest rent-to-own company, today announced its results for the second quarter and six months ended June 30, 2010.

Second Quarter 2010 Results

Revenue for the quarter increased 4.6% to $45.5 million compared with $43.5 million in the second quarter 2009. Same store revenue growth was 2.8% in the quarter. Net income for the quarter was $3.2 million or $0.31 per share compared with $1.9 million or $0.18 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 $0.33, an improvement of $0.15 or 83% compared with 2009.

"It was a great quarter that exceeded expectations and resulted in each business segment improving their comparable operating income. Our performance is a direct result of the operational and administrative changes initiated in the third quarter of last year, which continued into the latest quarter," said David Ingram, President and CEO (video). "Our Canadian leasing business is seeing the benefits of better execution at the basics of leasing and collecting, which has resulted in 2.7% more lease contracts being written than in the same period of 2009, and our bad debt arrears trending at the lowest levels in the Company's history. easyfinancial is growing faster than planned, with revenues of $3.4 million, an increase of $2.4 million or 235% compared to 2009. As a result of these changes, our operating margin in the quarter was 10.2%. Consumer demand for all our products remains strong, and as such, our outlook for the balance of the year remains optimistic."

Six Months Results

For the first half of the year, easyhome recorded revenues of $89.8 million, up 2.8% compared with $87.3 million in the first six months of 2009. Operating income for the period was $8.5 million, an increase of 9.8% compared with $7.8 million in the first six months of 2009. Net income, adjusted for unusual items, was $5.9 million compared with $4.3 million for the same period last year. On a per share basis and excluding the before tax restructuring charge of $0.6 million, fully diluted earnings were $0.57 per share compared with $0.41 per share a year ago.

In addition to improved year-over-year earnings, cash flow provided by operating activities continued to be strong at $8.8 million for the first six months of 2010 after an investment of $9.1 million to increase easyfinancial's loan portfolio. The Company reduced debt by a total of $3.3 million during the six month period, invested $4.1 million in capital expenditures and distributed $1.8 million to shareholders in dividends.

Donald K. Johnson, Chairman of the Board, said, "The Board is pleased with the improvement in the Company's performance since the 2009 restructuring. Although, like most businesses, we remain vigilant about the economic environment, we are confident that easyhome is once again poised for solid growth and enhanced value for shareholders."

The Board of Directors has approved a quarterly dividend payment of $0.085 per share payable on October 4, 2010 to common shareholders of record as at the close of business on September 27, 2010.

Appointment to the Board of Directors

The Company also announced the appointment of Mr. David Appel of Toronto, Ontario to the Board of Directors. Mr. Appel has had a varied and outstanding career in law, business, and government service, and is a director of a number of charitable organizations. Mr. Donald K. Johnson, Chairman, said: "We welcome David Appel to our Board. He brings excellent credentials and unquestioned integrity and I am sure he will make a major contribution to easyhome".

About easyhome

As at June 30, 2010, easyhome Ltd. had 244 stores, including 27 franchised/licensed locations. The company also operated 52 easyfinancial kiosks within existing easyhome stores.

easyhome Ltd. is Canada's largest merchandise leasing company and the third largest in North America, offering top quality, brand-name household furnishings, appliances and home electronic products to consumers under weekly or monthly leasing agreements through both corporate and franchise stores. In addition, the Company offers a variety of financial services, including loans, prepaid credit cards and cheque cashing through its easyfinancial services business. easyhome Ltd. is listed on the TSX under the symbol 'EH'.