goeasy Ltd. Reports Record Results for the Fourth Quarter and Full Year
Loan Portfolio of $4.60 billion, up 26% from $3.65 billion
Quarterly Revenue of $405 million, up 20% from $338 million
Quarterly Diluted EPS of $4.25; Adjusted Quarterly Diluted EPS1 of $4.45, up 11% from $4.01
Annual Diluted EPS of $16.30; Adjusted Annual Diluted EPS1 of $16.71, up 18% from $14.21
Annual Dividend per Share Increased to $5.84, up 25% from $4.68
MISSISSAUGA, ON, Feb. 13, 2025 /CNW/ -: goeasy Ltd. (TSX: GSY), ("goeasy" or the "Company"), one of Canada's leading consumer lenders focused on delivering a full suite of financial services to Canadians with non-prime credit, today reported results for the fourth quarter and full year ended December 31, 2024.
Fourth Quarter Results
During the quarter, the Company generated $814 million in loan originations, up 15% compared to $705 million produced in the fourth quarter of 2023. The increase in lending was driven by a record volume of applications for credit, which were up 28% over the prior year. The Company experienced strong performance across several product and acquisition channels, including unsecured lending, home equity lending, point-of-sale and automotive financing.
The increase in loan originations led to growth in the loan portfolio of $203 million. At quarter end, the consumer loan portfolio was $4.60 billion, up 26% from $3.65 billion in the fourth quarter of 2023. The growth in consumer loans led to an increase in revenue, which was a record $405 million in the quarter, up 20% from $338 million in the fourth quarter of last year.
During the quarter, the Company continued to experience stable credit and payment performance. The annualized net charge off rate was 9.1%, up slightly from 8.8% in the fourth quarter of 2023, and below the midpoint of the Company's forecasted range of between 8.75% and 9.75% for the quarter. The Company's allowance for future credit losses increased to 7.61%, compared to 7.38% in the third quarter, due to unfavourable changes in forward looking macroeconomic indicators produced by Moody's Analytics.
Operating income for the fourth quarter of 2024 was a record $165 million, up 20% from $137 million in the fourth quarter of 2023. Operating margin for the fourth quarter was 40.7%, up slightly from 40.6% in the same period last year. After adjusting for unusual and non-recurring items, the Company reported record adjusted operating income2 of $168 million, an increase of 20% compared to $141 million in the fourth quarter of 2023. Adjusted operating margin1 for the fourth quarter was 41.6%, consistent with 41.6% in the same period in 2023. The efficiency ratio1 for the fourth quarter of 2024 was 24.2%, an improvement of 410 bps from 28.3% in the fourth quarter of 2023, reflecting an increase in operating leverage.
Net income in the fourth quarter was $73.8 million, down slightly from $74.6 million in the same period of 2023, which resulted in diluted earnings per share of $4.25, down 2% from the $4.34 reported in the fourth quarter of 2023. After adjustments, adjusted net income2 was a record $77.4 million, up 12% from $69.0 million in the fourth quarter of 2023. Adjusted diluted earnings per share1 was a record $4.45, up 11% from $4.01 in the fourth quarter of 2023. Return on equity during the quarter was 24.7%, compared to 28.9% in the fourth quarter of 2023. Adjusted return on equity1 was 25.9% in the quarter, compared to 26.7% in the same period of 2023.
"The fourth quarter rounded out another record year for the company, in which we issued over $3.2 billion in loans, highlighting the critical role we play in providing everyday Canadians access to credit and the support to enhance their ability to gain future access to lower borrowing costs," said David Ingram, goeasy's Executive Chairman and Interim Chief Executive Officer, "In addition we also bolstered our balance sheet with another $200 million of new capital, lifting our total funding capacity to $1.9 billion to support our organic growth plans. With a declining leverage profile, we also repurchased approximately $69 million in shares during and subsequent to quarter-end," Mr. Ingram continued, "We are proud to have met or exceeded all of our full year forecasts for 2024 and are excited to introduce our new outlook, which includes scaling the loan portfolio to between $7 billion and $8 billion by the end of 2027. We have successfully integrated the new interest rate cap to our credit models and begin 2025 with confidence that our team will continue to generate another year of record earnings."
Other Key Fourth Quarter Highlights
easyfinancial
- Record revenue of $367 million, up 23%
- 45% of the loan portfolio secured, up from 42%
- Record volume of applications for credit, up 28%
- New customer volume at 46,800, up 16%
- 71% of net loan advances1 in the quarter were issued to new customers, up from 67%
- Average loan book per branch3 improved to a record $7.0 million, an increase of 22%
- Weighted average interest rate3 on consumer loans of 29.0%, down slightly from 30.3%
- Record operating income of $174 million, up 16%
easyhome
- Revenue of $37.8 million, down slightly from $38.6 million
- Consumer loan portfolio within easyhome stores increased to $116.2 million, up 9%
- Financial revenue2 from consumer lending increased to $13.2 million, up 7%
- Operating income of $10.0 million, up 6%
Overall
- 94th consecutive quarter of positive net income
- 2025 marks the 21st consecutive year of paying dividends and the 11th consecutive year of a dividend increase
- 59th consecutive quarter of same store revenue growth
- Total customers served approximately 1.5 million since easyfinancial's inception
- Acquired and organically originated over $16.0 billion in loans since easyfinancial's inception
- Adjusted return on equity1 of 25.9%, down from 26.7%
- Fully drawn weighted average cost of borrowing at 6.5%, down from 6.8%
- Net debt to net capitalization4 of 74% on December 31, 2024
Full Year Results
For the year of 2024, the Company funded a record $3.17 billion in loan originations, up 17% from $2.71 billion in 2023. The consumer loan portfolio finished at $4.60 billion, up 26% from $3.65 billion as of December 31, 2023.
For the year of 2024, the Company produced record revenues of $1.52 billion, up 22% compared to $1.25 billion in 2023. Operating income for the year was a record $610 million compared with $477 million in 2023, an increase of $133 million or 28%. Adjusted operating income2 for the year was a record $628 million, 28% higher compared to $491 million in the prior year. Efficiency ratio1 for the year was 25.3%, an improvement of 490 bps from 30.2% in 2023.
Net income for the year was $283 million and diluted earnings per share was $16.30, compared with $248 million or $14.48 per share in 2023. Adjusted net income2 for the year was a record $290 million and adjusted diluted earnings per share1 was a record $16.71 compared with $243 million or $14.21 per share, increases of 19% and 18%, respectively. Reported return on equity was 24.9%, while adjusted return on equity1 was 25.5%, up slightly from 25.4% in 2023.
Balance Sheet and Liquidity
Total assets were $5.19 billion as of December 31, 2024, an increase of 25% from $4.16 billion as of December 31, 2023, primarily driven by growth in the consumer loan portfolio.
In December 2024, the Company increased its existing revolving securitization warehouse facility collateralized by automotive consumer loans (the "Automotive Securitization Facility") by $200 million to $700 million. The maturity of the Automotive Securitization Facility was also extended by a year to December 15, 2026. The lending syndicate continues to consist of Bank of Montreal and Wells Fargo Bank, and the facility continues to bear interest on advances payable at the rate of Adjusted Daily Compounded Canadian Overnight Repo Rate Average ("Adjusted CORRA") plus 185 bps. Based on the current Adjusted CORRA rate, the interest rate would be 5.43%. The Company will continue to utilize an interest rate swap agreement to generate fixed rate payments on the amounts drawn.
During the quarter, the Company recognized a net investment gain of $6.1 million, mainly due to fair value changes in the Company's investments and from the disposal of its remaining investment in Affirm Holdings Inc. ("Affirm"). Including the cash received on the initial sale of PayBright Inc. to Affirm in January 2021, the total net realized gains amount to $129.4 million, relative to the initial investment of $34 million made in 2019, or approximately 3.8 times the initial investment.
Free cash flow from operations before net growth in gross consumer loans receivable2 in the quarter was $185 million compared to $85 million in the fourth quarter of 2023. Based on the cash on hand at the end of the quarter and the borrowing capacity under the Company's existing revolving credit facilities, the Company has approximately $1.9 billion in total funding capacity as of December 31, 2024 and a net debt to net capitalization ratio of 74%. The Company remains confident that the capacity available under its existing funding facilities, and its ability to raise additional debt financing, is sufficient to fund its organic growth forecast.
At quarter-end, the Company's weighted average cost of borrowing was 6.8%, and the fully drawn weighted average cost of borrowing was 6.5%. The Company estimates that it could currently grow the consumer loan portfolio by approximately $300 million per year solely from internal cash flows, without utilizing external debt. The Company also estimates that once its existing and available sources of debt are fully utilized, it could continue to grow the loan portfolio by approximately $500 million per year solely from internal cash flows.
Future Outlook
The Company has provided a new 3-year forecast for the years 2025 through 2027. The periods of 2025 and 2026 have been updated to reflect the most recent outlook. The forecast reflects an effective date of January 1, 2025 for the previously announced new legislation to reduce the maximum allowable rate of interest. The Company employs the use of probability weighted third party economic forecasts to establish its economic 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 to reduce the cost of borrowing for its consumers and extend the life of its customer relationships. As such, the total yield earned on its consumer loan portfolio and net charge off rates will gradually decline, while operating margins expand. The forecast outlined below is based on the Company's expected domestic organic growth plan and does not include the impact of any future mergers or acquisitions, or the associated gains or losses related to its investments.
The following tables outline the Company's new 3-year forecast for the years 2025 through 2027, and the prior forecast, which was issued in August 2024.
New Forecast
Forecast for 2025 |
Forecast for 2026 |
Forecast for 2027 |
|
Gross consumer loans receivable at year end |
$5.40 - $5.70 billion |
$6.40 - $6.70 billion |
$7.35 - $7.75 billion |
Total Company revenue |
$1.62 - $1.82 billion |
$1.80 - $2.00 billion |
$2.00 - $2.20 billion |
Total yield on consumer loans (including ancillary products)1 |
31.0% - 32.5% |
29.0% - 31.0% |
29.0% - 31.0% |
Net charge offs as a percentage of average gross consumer loans receivable |
7.75% - 9.75% |
7.5% - 9.5% |
7.5% - 9.5% |
Total Company operating margin |
41%+ |
42.5%+ |
43%+ |
Return on equity |
23%+ |
23%+ |
23%+ |
Previous Forecast
Prior Forecast for 2025 |
Prior Forecast for 2026 |
Prior Forecast for |
|
Gross consumer loans receivable at year end |
$5.30 - $5.60 billion |
$6.00 - $6.40 billion |
n/a |
Total Company revenue |
$1.60 - $1.80 billion |
$1.75 - $1.95 billion |
n/a |
Total yield on consumer loans (including ancillary products)1 |
31.25% - 33.25% |
29.5% - 31.5% |
n/a |
Net charge offs as a percentage of average gross consumer loans receivable |
7.75% - 9.75% |
7.5% - 9.5% |
n/a |
Total Company operating margin |
41%+ |
42%+ |
n/a |
Return on equity |
21%+ |
21%+ |
n/a |
Update on CEO Leadership Transition
Effective January 1, 2025, David Ingram, goeasy's Executive Chairman, assumed the additional role of Interim President & Chief Executive Officer. Mr. Ingram previously served as Chief Executive Officer from 2001 through 2018, and has served as Executive Chairman since 2019. Jason Mullins, the Company's previous President & Chief Executive Officer since 2019, will continue in the role of a Director on the Board.
In July of 2024, the Board formed a CEO Transition Committee to lead the identification and selection of the organization's next Chief Executive Officer. The Committee is pleased to share it has made significant progress on the search and is in advanced stages with a preferred candidate. The Company will continue to provide further updates as they become available.
Dividend
Based on its 2024 adjusted earnings and the Company's confidence in its continued growth, the Board of Directors has approved an increase to the annual dividend from $4.68 per share to $5.84 per share, an increase of 25%. This year marks the 11th consecutive year of an increase in the dividend to shareholders. As such, the Board of Directors has approved a quarterly dividend of $1.46 per share payable on April 11, 2025 to the holders of common shares of record as at the close of business on March 28, 2025.
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 and expected financial performance and condition. Forward-looking statements include, but are not limited to, statements with respect to forecasts for growth of the consumer loans receivable, annual revenue growth forecasts, strategic initiatives, new product offerings and new delivery channels, anticipated cost savings, planned capital expenditures, anticipated capital requirements and the Company's ability to secure sufficient capital, liquidity of the Company, plans and references to future operations and results, critical accounting estimates, expected future yields and net charge off rates on loans, the dealer relationships, the size and characteristics of the Canadian non-prime lending market and the continued development of the type and size of competitors in the market. In certain cases, forward-looking 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 "expect", "continue", "anticipate", "intend", "aim", "plan", "believe", "budget", "estimate", "forecast", "foresee", "target" 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. 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. Some important factors that could cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to, goeasy'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, offer 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, compete, 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. These and other factors could cause actual results to differ materially from our expectations expressed in the forward-looking statements, and further details and descriptions of these and other factors are disclosed in the Company's Management's Discussion and Analysis ("MD&A"), including under the section entitled "Risk Factors".
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. is a Canadian company, headquartered in Mississauga, Ontario, that provides non-prime leasing and lending services through its easyhome, easyfinancial and LendCare brands. Supported by over 2,500 employees, the Company offers a wide variety of financial products and services including unsecured and secured instalment loans, merchant financing through a variety of verticals and lease-to-own merchandise. Customers can transact seamlessly through an omni-channel model that includes online and mobile platforms, over 400 locations across Canada, and point-of-sale financing offered in the retail, powersports, automotive, home improvement and healthcare verticals, through over 10,800 merchant partners across Canada. Throughout the Company's history, it has acquired and organically served approximately 1.5 million Canadians and originated over $16.0 billion in loans.
Accredited by the Better Business Bureau, goeasy is the proud recipient of several awards in recognition of its exceptional culture and continued business growth including 2024 Best Workplaces™ in Financial Services & Insurance, Waterstone Canada's Most Admired Corporate Cultures, ranking on the 2022 Report on Business Women Lead Here executive gender diversity benchmark, placing on the 2024 Report on Business ranking of Canada's Top Growing Companies, ranking on the TSX30, Greater Toronto Top Employers Award and has been certified as a Great Place to Work®. The Company is represented by a diverse group of team members from over 70 nationalities who believe strongly in giving back to communities in which it operates. To date, goeasy has raised and donated over $6.3 million to support its long-standing partnerships with BGC Canada and many other local charities.
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.
For more information about goeasy and our business units, visit www.goeasy.com, www.easyfinancial.com, www.lendcare.ca, www.easyhome.ca.
For further information contact:
Farhan Ali Khan
Executive Vice President & Chief Strategy and Corporate Development Officer
(905) 272-2788
Notes: |
1 These are non-IFRS ratios. Refer to "Non-IFRS Measures and Other Financial Measures" section in this press release. |
2 These are non-IFRS measures. Refer to "Non-IFRS Measures and Other Financial Measures" section in this press release. |
3 These are supplementary financial measures. Refer to "Non-IFRS Measures and Other Financial Measures" section in this press release. |
4 These are capital management measures. Refer to "Non-IFRS Measures and Other Financial Measures" section in this press release. |
5 Non-IFRS ratios, non-IFRS measures, supplementary financial measures and capital management measures are not determined in accordance with IFRS, do not have standardized meanings and may not be comparable to similar financial measures presented by other companies. |
goeasy Ltd. |
||||
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
||||
(Expressed in thousands of Canadian dollars) |
||||
As At |
As At |
|||
December 31, |
December 31, |
|||
2024 |
2023 |
|||
ASSETS |
||||
Cash |
251,381 |
144,577 |
||
Accounts receivable |
42,438 |
30,762 |
||
Prepaid expenses |
9,488 |
9,462 |
||
Consumer loans receivable, net |
4,366,533 |
3,447,588 |
||
Investments |
41,918 |
61,464 |
||
Lease assets |
40,973 |
45,187 |
||
Derivative financial assets |
60,675 |
21,904 |
||
Property and equipment, net |
35,004 |
35,382 |
||
Right-of-use assets, net |
54,224 |
61,987 |
||
Intangible assets, net |
110,979 |
124,931 |
||
Goodwill |
180,923 |
180,923 |
||
TOTAL ASSETS |
5,194,536 |
4,164,167 |
||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||
Liabilities |
||||
Revolving credit facility |
21,797 |
190,921 |
||
Accounts payable and other liabilities |
156,903 |
72,409 |
||
Income taxes payable |
24,567 |
24,691 |
||
Dividends payable |
19,519 |
15,960 |
||
Unearned revenue |
25,864 |
26,965 |
||
Accrued interest payable |
49,003 |
12,875 |
||
Deferred income tax liabilities, net |
4,184 |
24,259 |
||
Lease liabilities |
62,164 |
70,809 |
||
Secured borrowings |
120,335 |
143,177 |
||
Revolving securitization warehouse facilities |
1,073,876 |
1,364,741 |
||
Derivative financial liabilities |
21,466 |
42,457 |
||
Notes payable |
2,413,795 |
1,120,826 |
||
TOTAL LIABILITIES |
3,993,473 |
3,110,090 |
||
Shareholders' equity |
||||
Share capital |
438,302 |
428,328 |
||
Contributed surplus |
26,942 |
24,817 |
||
Accumulated other comprehensive loss |
(56,938) |
(9,721) |
||
Retained earnings |
792,757 |
610,653 |
||
TOTAL SHAREHOLDERS' EQUITY |
1,201,063 |
1,054,077 |
||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
5,194,536 |
4,164,167 |
||
goeasy Ltd. |
||||
CONSOLIDATED STATEMENTS OF INCOME |
||||
(Expressed in thousands of Canadian dollars, except earnings per share) |
||||
Three Months Ended |
Year Ended |
|||
December 31, |
December 31, |
December 31, |
December 31, |
|
2024 |
2023 |
2024 |
2023 |
|
REVENUE |
||||
Interest income |
304,363 |
244,668 |
1,121,822 |
888,928 |
Lease revenue |
23,213 |
24,691 |
95,407 |
99,848 |
Commissions earned |
71,092 |
61,510 |
275,726 |
234,485 |
Charges and fees |
6,517 |
7,243 |
30,334 |
26,808 |
405,185 |
338,112 |
1,523,289 |
1,250,069 |
|
OPERATING EXPENSES |
||||
BAD DEBTS |
128,978 |
91,570 |
467,764 |
341,639 |
OTHER OPERATING EXPENSES |
||||
Salaries and benefits |
50,461 |
49,322 |
201,791 |
200,917 |
Share-based compensation |
1,050 |
3,678 |
13,534 |
12,938 |
Technology costs |
9,798 |
7,410 |
38,088 |
28,402 |
Advertising and promotion |
9,271 |
8,305 |
32,979 |
31,020 |
Underwriting and collections |
6,416 |
4,231 |
21,251 |
16,564 |
Occupancy |
5,060 |
6,269 |
20,632 |
25,405 |
Other expenses |
8,299 |
8,519 |
33,698 |
30,335 |
90,355 |
87,734 |
361,973 |
345,581 |
|
DEPRECIATION AND AMORTIZATION |
||||
Depreciation of lease assets |
7,622 |
8,207 |
29,482 |
33,535 |
Amortization of intangible assets |
5,368 |
5,552 |
22,788 |
21,999 |
Depreciation of right-of-use assets |
5,253 |
5,420 |
21,349 |
21,260 |
Depreciation of property and equipment |
2,554 |
2,392 |
10,276 |
9,537 |
20,797 |
21,571 |
83,895 |
86,331 |
|
TOTAL OPERATING EXPENSES |
240,130 |
200,875 |
913,632 |
773,551 |
OPERATING INCOME |
165,055 |
137,237 |
609,657 |
476,518 |
OTHER INCOME |
6,105 |
1,310 |
3,132 |
9,771 |
FINANCE COSTS |
(71,645) |
(36,580) |
(225,492) |
(149,334) |
INCOME BEFORE INCOME TAXES |
99,515 |
101,967 |
387,297 |
336,955 |
INCOME TAX EXPENSE (RECOVERY) |
||||
Current |
29,748 |
22,994 |
113,370 |
90,809 |
Deferred |
(4,058) |
4,371 |
(9,183) |
(1,752) |
25,690 |
27,365 |
104,187 |
89,057 |
|
NET INCOME |
73,825 |
74,602 |
283,110 |
247,898 |
BASIC EARNINGS PER SHARE |
4.32 |
4.41 |
16.56 |
14.70 |
DILUTED EARNINGS PER SHARE |
4.25 |
4.34 |
16.30 |
14.48 |
SUMMARY OF FINANCIAL RESULTS BY REPORTABLE SEGMENT |
|||||||
(Expressed in thousands of Canadian dollars, except earnings per share) |
|||||||
Three Months Ended December 31, 2024 |
|||||||
easyfinancial |
easyhome |
Corporate |
Total |
||||
Revenue |
|||||||
Interest income |
294,150 |
10,213 |
- |
304,363 |
|||
Lease revenue |
- |
23,213 |
- |
23,213 |
|||
Commissions earned |
67,498 |
3,594 |
- |
71,092 |
|||
Charges and fees |
5,696 |
821 |
- |
6,517 |
|||
367,344 |
37,841 |
- |
405,185 |
||||
Operating expenses |
|||||||
Bad debts |
124,334 |
4,644 |
- |
128,978 |
|||
Other operating expenses |
59,413 |
13,499 |
17,443 |
90,355 |
|||
Depreciation and amortization |
9,408 |
9,697 |
1,692 |
20,797 |
|||
193,155 |
27,840 |
19,135 |
240,130 |
||||
Operating income (loss) |
174,189 |
10,001 |
(19,135) |
165,055 |
|||
Other income |
6,105 |
||||||
Finance costs |
(71,645) |
||||||
Income before income taxes |
99,515 |
||||||
Income taxes |
25,690 |
||||||
Net income |
73,825 |
||||||
Diluted earnings per share |
4.25 |
||||||
Three Months Ended December 31, 2023 |
|||||||
easyfinancial |
easyhome |
Corporate |
Total |
||||
Revenue |
|||||||
Interest income |
235,142 |
9,526 |
- |
244,668 |
|||
Lease revenue |
- |
24,691 |
- |
24,691 |
|||
Commissions earned |
58,015 |
3,495 |
- |
61,510 |
|||
Charges and fees |
6,308 |
935 |
- |
7,243 |
|||
299,465 |
38,647 |
- |
338,112 |
||||
Operating expenses |
|||||||
Bad debts |
87,076 |
4,494 |
- |
91,570 |
|||
Other operating expenses |
52,533 |
14,330 |
20,871 |
87,734 |
|||
Depreciation and amortization |
9,614 |
10,419 |
1,538 |
21,571 |
|||
149,223 |
29,243 |
22,409 |
200,875 |
||||
Operating income (loss) |
150,242 |
9,404 |
(22,409) |
137,237 |
|||
Other income |
1,310 |
||||||
Finance costs |
(36,580) |
||||||
Income before income taxes |
101,967 |
||||||
Income taxes |
27,365 |
||||||
Net income |
74,602 |
||||||
Diluted earnings per share |
4.34 |
||||||
Year Ended December 31, 2024 |
|||||||
easyfinancial |
easyhome |
Corporate |
Total |
||||
Revenue |
|||||||
Interest income |
1,081,843 |
39,979 |
- |
1,121,822 |
|||
Lease revenue |
- |
95,407 |
- |
95,407 |
|||
Commissions earned |
261,630 |
14,096 |
- |
275,726 |
|||
Charges and fees |
26,941 |
3,393 |
- |
30,334 |
|||
1,370,414 |
152,875 |
- |
1,523,289 |
||||
Operating expenses |
|||||||
Bad debts |
452,558 |
15,206 |
- |
467,764 |
|||
Other operating expenses |
212,451 |
54,987 |
94,535 |
361,973 |
|||
Depreciation and amortization |
38,995 |
38,096 |
6,804 |
83,895 |
|||
704,004 |
108,289 |
101,339 |
913,632 |
||||
Operating income (loss) |
666,410 |
44,586 |
(101,339) |
609,657 |
|||
Other income |
3,132 |
||||||
Finance costs |
(225,492) |
||||||
Income before income taxes |
387,297 |
||||||
Income taxes |
104,187 |
||||||
Net income |
283,110 |
||||||
Diluted earnings per share |
16.30 |
||||||
Year Ended December 31, 2023 |
|||||||
easyfinancial |
easyhome |
Corporate |
Total |
||||
Revenue |
|||||||
Interest income |
853,228 |
35,700 |
- |
888,928 |
|||
Lease revenue |
- |
99,848 |
- |
99,848 |
|||
Commissions earned |
220,363 |
14,122 |
- |
234,485 |
|||
Charges and fees |
23,226 |
3,582 |
- |
26,808 |
|||
1,096,817 |
153,252 |
- |
1,250,069 |
||||
Operating expenses |
|||||||
Bad debts |
327,196 |
14,443 |
- |
341,639 |
|||
Other operating expenses |
197,358 |
59,610 |
88,613 |
345,581 |
|||
Depreciation and amortization |
37,747 |
42,259 |
6,325 |
86,331 |
|||
562,301 |
116,312 |
94,938 |
773,551 |
||||
Operating income (loss) |
534,516 |
36,940 |
(94,938) |
476,518 |
|||
Other income |
9,771 |
||||||
Finance costs |
(149,334) |
||||||
Income before income taxes |
336,955 |
||||||
Income taxes |
89,057 |
||||||
Net income |
247,898 |
||||||
Diluted earnings per share |
14.48 |
||||||
SUMMARY OF FINANCIAL RESULTS AND KEY PERFORMANCE INDICATORS |
|||||
(Expressed in thousands of Canadian dollars, except earnings per share and percentages) |
|||||
Three Months Ended |
|||||
December 31, |
December 31, |
Variance |
Variance |
||
2024 |
2023 |
$ / bps |
% change |
||
Summary Financial Results |
|||||
Revenue |
405,185 |
338,112 |
67,073 |
19.8 % |
|
Bad debts |
128,978 |
91,570 |
37,408 |
40.9 % |
|
Other operating expenses |
90,355 |
87,734 |
2,621 |
3.0 % |
|
EBITDA1 |
184,335 |
151,911 |
32,424 |
21.3 % |
|
EBITDA margin1 |
45.5 % |
44.9 % |
60 bps |
1.3 % |
|
Depreciation and amortization |
20,797 |
21,571 |
(774) |
(3.6 %) |
|
Operating income |
165,055 |
137,237 |
27,818 |
20.3 % |
|
Operating margin |
40.7 % |
40.6 % |
10 bps |
0.2 % |
|
Other income |
6,105 |
1,310 |
4,795 |
366.0 % |
|
Finance costs |
71,645 |
36,580 |
35,065 |
95.9 % |
|
Effective income tax rate |
25.8 % |
26.8 % |
(100 bps) |
(3.7 %) |
|
Net income |
73,825 |
74,602 |
(777) |
(1.0 %) |
|
Diluted earnings per share |
4.25 |
4.34 |
(0.09) |
(2.1 %) |
|
Return on receivables |
6.5 % |
8.3 % |
(180 bps) |
(21.7 %) |
|
Return on assets |
5.9 % |
7.4 % |
(150 bps) |
(20.3 %) |
|
Return on equity |
24.7 % |
28.9 % |
(420 bps) |
(14.5 %) |
|
Return on tangible common equity1 |
32.0 % |
39.5 % |
(750 bps) |
(19.0 %) |
|
Adjusted Financial Results1 |
|||||
Other operating expenses |
97,885 |
95,810 |
2,075 |
2.2 % |
|
Efficiency ratio |
24.2 % |
28.3 % |
(410 bps) |
(14.5 %) |
|
Operating income |
168,422 |
140,643 |
27,779 |
19.8 % |
|
Operating margin |
41.6 % |
41.6 % |
- |
- |
|
Net income |
77,399 |
68,961 |
8,438 |
12.2 % |
|
Diluted earnings per share |
4.45 |
4.01 |
0.44 |
11.0 % |
|
Return on receivables |
6.8 % |
7.7 % |
(90 bps) |
(11.7 %) |
|
Return on assets |
6.1 % |
6.8 % |
(70 bps) |
(10.3 %) |
|
Return on equity |
25.9 % |
26.7 % |
(80 bps) |
(3.0 %) |
|
Return on tangible common equity |
32.5 % |
35.3 % |
(280 bps) |
(7.9 %) |
|
Key Performance Indicators |
|||||
Segment Financials |
|||||
easyfinancial revenue |
367,344 |
299,465 |
67,879 |
22.7 % |
|
easyfinancial operating margin |
47.4 % |
50.2 % |
(280 bps) |
(5.6 %) |
|
easyhome revenue |
37,841 |
38,647 |
(806) |
(2.1 %) |
|
easyhome operating margin |
26.4 % |
24.3 % |
210 bps |
8.6 % |
|
Portfolio Indicators |
|||||
Gross consumer loans receivable |
4,596,115 |
3,645,202 |
950,913 |
26.1 % |
|
Growth in consumer loans receivable |
202,762 |
214,926 |
(12,164) |
(5.7 %) |
|
Gross loan originations |
813,689 |
704,875 |
108,814 |
15.4 % |
|
Total yield on consumer loans (including ancillary |
33.6 % |
34.9 % |
(130 bps) |
(3.7 %) |
|
Net charge offs as a percentage of average gross |
9.1 % |
8.8 % |
30 bps |
3.4 % |
|
Free cash flows from operations before net growth in |
185,177 |
85,142 |
100,035 |
117.5 % |
|
Potential monthly leasing revenue1 |
6,875 |
7,654 |
(779) |
(10.2 %) |
|
1 EBITDA, adjusted other operating expenses, adjusted operating income, adjusted net income and free cash flows from operations before net growth in gross consumer loans receivable are non-IFRS measures. EBITDA margin, efficiency ratio, adjusted operating margin, adjusted diluted earnings per share, adjusted return on equity, adjusted return on receivable, adjusted return on assets, reported and adjusted return on tangible common equity and total yield on consumer loans (including ancillary products) are non-IFRS ratios. Refer to "Non-IFRS Measures and Other Financial Measures" section in this press release. |
|||||
Year Ended |
|||||
December 31, |
December 31, |
Variance |
Variance |
||
2024 |
2023 |
$ / bps |
% change |
||
Summary Financial Results |
|||||
Revenue |
1,523,289 |
1,250,069 |
273,220 |
21.9 % |
|
Bad debts |
467,764 |
341,639 |
126,125 |
36.9 % |
|
Other operating expenses |
361,973 |
345,581 |
16,392 |
4.7 % |
|
EBITDA1 |
667,202 |
539,085 |
128,117 |
23.8 % |
|
EBITDA margin1 |
43.8 % |
43.1 % |
70 bps |
1.6 % |
|
Depreciation and amortization |
83,895 |
86,331 |
(2,436) |
(2.8 %) |
|
Operating income |
609,657 |
476,518 |
133,139 |
27.9 % |
|
Operating margin |
40.0 % |
38.1 % |
190 bps |
5.0 % |
|
Other income |
3,132 |
9,771 |
(6,639) |
(67.9 %) |
|
Finance costs |
225,492 |
149,334 |
76,158 |
51.0 % |
|
Effective income tax rate |
26.9 % |
26.4 % |
50 bps |
1.9 % |
|
Net income |
283,110 |
247,898 |
35,212 |
14.2 % |
|
Diluted earnings per share |
16.30 |
14.48 |
1.82 |
12.6 % |
|
Return on receivables |
6.8 % |
7.6 % |
(80 bps) |
(10.5 %) |
|
Return on assets |
6.1 % |
6.7 % |
(60 bps) |
(9.0 %) |
|
Return on equity |
24.9 % |
25.9 % |
(100 bps) |
(3.9 %) |
|
Return on tangible common equity1 |
32.8 % |
36.7 % |
(390 bps) |
(10.6 %) |
|
Adjusted Financial Results1 |
|||||
Other operating expenses |
386,017 |
377,574 |
8,443 |
2.2 % |
|
Efficiency ratio |
25.3 % |
30.2 % |
(490 bps) |
(16.2 %) |
|
Operating income |
628,195 |
491,160 |
137,035 |
27.9 % |
|
Operating margin |
41.2 % |
39.3 % |
190 bps |
4.8 % |
|
Net income |
290,142 |
243,175 |
46,967 |
19.3 % |
|
Diluted earnings per share |
16.71 |
14.21 |
2.50 |
17.6 % |
|
Return on receivables |
7.0 % |
7.5 % |
(50 bps) |
(6.7 %) |
|
Return on assets |
6.2 % |
6.5 % |
(30 bps) |
(4.6 %) |
|
Return on equity |
25.5 % |
25.4 % |
10 bps |
0.4 % |
|
Return on tangible common equity |
32.5 % |
34.6 % |
(210 bps) |
(6.1 %) |
|
Key Performance Indicators |
|||||
Segment Financials |
|||||
easyfinancial revenue |
1,370,414 |
1,096,817 |
273,597 |
24.9 % |
|
easyfinancial operating margin |
48.6 % |
48.7 % |
(10 bps) |
(0.2 %) |
|
easyhome revenue |
152,875 |
153,252 |
(377) |
(0.2 %) |
|
easyhome operating margin |
29.2 % |
24.1 % |
510 bps |
21.2 % |
|
Portfolio Indicators |
|||||
Gross consumer loans receivable |
4,596,115 |
3,645,202 |
950,913 |
26.1 % |
|
Growth in consumer loans receivable |
950,913 |
850,508 |
100,405 |
11.8 % |
|
Gross loan originations |
3,166,227 |
2,709,194 |
457,033 |
16.9 % |
|
Total yield on consumer loans (including ancillary |
34.1 % |
35.3 % |
(120 bps) |
(3.4 %) |
|
Net charge offs as a percentage of average gross |
9.2 % |
8.9 % |
30 bps |
3.4 % |
|
Free cash flows from operations before net growth in |
481,467 |
377,291 |
104,176 |
27.6 % |
|
Potential monthly leasing revenue1 |
6,875 |
7,654 |
(779) |
(10.2 %) |
|
1 EBITDA, adjusted other operating expenses, adjusted operating income, adjusted net income and free cash flows from operations before net growth in gross consumer loans receivable are non-IFRS measures. EBITDA margin, efficiency ratio, adjusted operating margin, adjusted diluted earnings per share, adjusted return on equity, adjusted return on receivable, adjusted return on assets, reported and adjusted return on tangible common equity and total yield on consumer loans (including ancillary products) are non-IFRS ratios. Refer to "Non-IFRS Measures and Other Financial Measures" section in this press release. |
|||||
Non-IFRS Measures and Other Financial Measures
The Company uses a number of financial measures to assess its performance. Some of these measures are not calculated in accordance with International Financial Reporting Standards (IFRS) as issued by International Accounting Standards Board (IASB), are not identified by IFRS and do not have standardized meanings that would ensure consistency and comparability among companies using these measures. The Company believes that non-IFRS measures are useful in assessing ongoing business performance and provide readers with a better understanding of how management assesses performance. These non-IFRS measures are used throughout this press release and listed below. An explanation of the composition of non-IFRS measures and other financial measures can be found in the Company's MD&A, available on www.sedarplus.ca.
Adjusted Net Income and Adjusted Diluted Earnings Per Share
Adjusted net income is a non-IFRS measure, while adjusted diluted earnings per share is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 42 of the Company's MD&A for the year ended December 31, 2024. Items used to calculate adjusted net income and adjusted earnings per share for the three-month periods and years ended December 31, 2024 and 2023 include those indicated in the chart below:
Three Months Ended |
Year Ended |
|||
| ($ in 000's except earnings per share) |
December 31, 2024 |
December 31, 2023 |
December 31, 2024 |
December 31, 2023 |
Net income as stated |
73,825 |
74,602 |
283,110 |
247,898 |
Impact of adjusting items |
||||
Other operating expenses |
||||
Advisory costs1 |
- |
- |
4,941 |
- |
Integration costs2 |
92 |
131 |
497 |
608 |
Contract exit fee4 |
- |
- |
- |
934 |
Depreciation and amortization |
||||
Amortization of acquired intangible |
3,275 |
3,275 |
13,100 |
13,100 |
Other income5 |
(6,105) |
(1,310) |
(3,132) |
(9,771) |
Finance costs |
||||
Refinancing costs related to Notes |
9,429 |
9,501 |
9,429 |
9,501 |
Discount on the repurchase of Notes |
(1,487) |
- |
(1,487) |
- |
Fair value change on prepayment |
761 |
(19,035) |
(13,216) |
(19,035) |
Total pre-tax impact of adjusting items |
5,965 |
(7,438) |
10,132 |
(4,663) |
Income tax impact of above |
(2,391) |
1,797 |
(3,100) |
(60) |
After-tax impact of adjusting items |
3,574 |
(5,641) |
7,032 |
(4,723) |
Adjusted net income |
77,399 |
68,961 |
290,142 |
243,175 |
Weighted average number of diluted |
17,383 |
17,207 |
17,366 |
17,117 |
Diluted earnings per share as stated |
4.25 |
4.34 |
16.30 |
14.48 |
Per share impact of adjusting items |
0.20 |
(0.33) |
0.41 |
(0.27) |
Adjusted diluted earnings per share |
4.45 |
4.01 |
16.71 |
14.21 |
Adjusting items related to the advisory costs |
1 Advisory costs for the three-month period and year ended December 31, 2024 were related to non-recurring advisory, consulting and legal costs. |
Adjusting items related to the LendCare acquisition |
2 Integration costs related to representation and warranty insurance costs, and other integration costs related to the acquisition of LendCare. |
3 Amortization of the $131 million intangible asset related to the acquisition of LendCare with an estimated useful life of ten years. |
Adjusting items related to a contract exit fee |
4 In the first quarter of 2023, the Company settled its dispute with the third-party technology provider that was contracted in 2020 to develop a new loan management system. |
Adjusting item related to other income |
5 For the three-month periods and years ended December 31, 2024 and 2023, net investment income were mainly due to fair value changes in the Company's investments. |
Adjusting item related to the refinancing of Notes Payable |
6 In the fourth quarter of 2024, the Company the Company extinguished a total of US$255.4 million of 4.375% senior unsecured notes payable maturing on May 1, 2026 that were validly tendered and accepted for repurchase at a price of US$999.58 per US$1,000 principal amount, resulting in a $1.5 million discount. As a result of repurchasing these notes and the unwinding of the related cross-currency swaps, the Company incurred tender offer fees, recognized the remaining unamortized deferred financing costs related to these notes, realized derivative loss, and reclassified the net change in cash flow hedge from OCI to the consolidated statements of income resulting in a total refinancing cost of $9.4 million. |
7 In the fourth quarter of 2023, the Company repaid its 5.375% senior unsecured notes payable maturing on December 1, 2024 ("2024 Notes") that would have matured on December 1, 2024 and unwound the related cross currency swaps, incurring a $9.5 million refinancing costs, which included the recognition of the remaining unamortized deferred financing costs, realized derivative loss on the settlement of the cross-currency swaps associated to 2024 Notes, and the net change in cash flow hedge that was reclassified from other comprehensive income to consolidated statement of income. |
Adjusting item related to prepayment options embedded in the Notes Payable |
8 For the three-month periods and years ended December 31, 2024 and 2023, the Company recognized a fair value change on the prepayment options related to Notes Payable. |
Adjusted Other Operating Expenses and Efficiency Ratio
Adjusted other operating expenses is a non-IFRS measure, while efficiency ratio is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 42 of the Company's MD&A for the year ended December 31, 2024. Items used to calculate adjusted other operating expenses and efficiency ratio for the three-month periods and years ended December 31, 2024 and 2023 include those indicated in the chart below:
Three Months Ended |
Year Ended |
|||
| ($ in 000's except earnings per share) |
December 31, 2024 |
December 31, 2023 |
December 31, 2024 |
December 31, 2023 |
Other operating expenses as stated |
90,355 |
87,734 |
361,973 |
345,581 |
Impact of adjusting items1 |
||||
Other operating expenses |
||||
Integration costs |
(92) |
(131) |
(497) |
(608) |
Advisory costs |
- |
- |
(4,941) |
- |
Contract exit fee |
- |
- |
- |
(934) |
Depreciation and amortization |
||||
Depreciation of lease assets |
7,622 |
8,207 |
29,482 |
33,535 |
Total impact of adjusting items |
7,530 |
8,076 |
24,044 |
31,993 |
Adjusted other operating expenses |
97,885 |
95,810 |
386,017 |
377,574 |
Total revenue |
405,185 |
338,112 |
1,523,289 |
1,250,069 |
Efficiency ratio |
24.2 % |
28.3 % |
25.3 % |
30.2 % |
1 For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section. |
Adjusted Operating Margin
Adjusted operating income is a non-IFRS measure, while adjusted operating margin is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 42 of the Company's MD&A for the year ended December 31, 2024. Items used to calculate adjusted operating income and adjusted operating margins for the three-month periods and years ended December 31, 2024 and 2023 include those indicated in the chart below:
Three Months Ended |
||||
| ($ in 000's except percentages) |
December 31, 2024 |
December 31, 2024 |
December 31, 2023 |
December 31, 2023 |
easyfinancial |
||||
Operating income |
174,189 |
174,189 |
150,242 |
150,242 |
Divided by revenue |
367,344 |
367,344 |
299,465 |
299,465 |
easyfinancial operating margin |
47.4 % |
47.4 % |
50.2 % |
50.2 % |
easyhome |
||||
Operating income |
10,001 |
10,001 |
9,404 |
9,404 |
Divided by revenue |
37,841 |
37,841 |
38,647 |
38,647 |
easyhome operating margin |
26.4 % |
26.4 % |
24.3 % |
24.3 % |
Total |
||||
Operating income |
165,055 |
165,055 |
137,237 |
137,237 |
Other operating expenses1 |
||||
Integration costs |
- |
92 |
- |
131 |
Depreciation and amortization1 |
||||
Amortization of acquired intangible assets |
- |
3,275 |
- |
3,275 |
Adjusted operating income |
165,055 |
168,422 |
137,237 |
140,643 |
Divided by revenue |
405,185 |
405,185 |
338,112 |
338,112 |
Total operating margin |
40.7 % |
41.6 % |
40.6 % |
41.6 % |
1 For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section. |
Year Ended |
||||
| ($ in 000's except percentages) |
December 31, 2024 |
December 31, 2024 |
December 31, 2023 |
December 31, 2023 |
easyfinancial |
||||
Operating income |
666,410 |
666,410 |
534,516 |
534,516 |
Divided by revenue |
1,370,414 |
1,370,414 |
1,096,817 |
1,096,817 |
easyfinancial operating margin |
48.6 % |
48.6 % |
48.7 % |
48.7 % |
easyhome |
||||
Operating income |
44,586 |
44,586 |
36,940 |
36,940 |
Divided by revenue |
152,875 |
152,875 |
153,252 |
53,252 |
easyhome operating margin |
29.2 % |
29.2 % |
24.1 % |
24.1 % |
Total |
||||
Operating income |
609,657 |
609,657 |
476,518 |
476,518 |
Other operating expenses1 |
||||
Advisory costs |
- |
4,941 |
- |
- |
Integration costs |
- |
497 |
- |
608 |
Contract exit fee |
- |
- |
- |
934 |
Depreciation and amortization1 |
||||
Amortization of acquired intangible assets |
- |
13,100 |
- |
13,100 |
Adjusted operating income |
609,657 |
628,195 |
476,518 |
491,160 |
Divided by revenue |
1,523,289 |
1,523,289 |
1,250,069 |
1,250,069 |
Total operating margin |
40.0 % |
41.2 % |
38.1 % |
39.3 % |
1 For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section. |
Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA") and EBITDA Margin
EBITDA is a non-IFRS measure, while EBITDA margin is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 42 of the Company's MD&A for the year ended December 31, 2024. Items used to calculate EBITDA and EBITDA margin for the three-month periods and years ended December 31, 2024 and 2023 include those indicated in the chart below:
Three Months Ended |
Year Ended |
|||
($in 000's except percentages) |
December 31, 2024 |
December 31, 2023 |
December 31, 2024 |
December 31, 2023 |
Net income as stated |
73,825 |
74,602 |
283,110 |
247,898 |
Finance cost |
71,645 |
36,580 |
225,492 |
149,334 |
Income tax expense |
25,690 |
27,365 |
104,187 |
89,027 |
Depreciation and amortization |
20,797 |
21,571 |
83,895 |
86,331 |
Depreciation of lease assets |
(7,622) |
(8,207) |
(29,482) |
(33,535) |
EBITDA |
184,335 |
151,911 |
667,202 |
539,085 |
Divided by revenue |
405,185 |
338,112 |
1,523,289 |
1,250,069 |
EBITDA margin |
45.5 % |
44.9 % |
43.8 % |
43.1 % |
Free Cash Flow from Operations before Net Growth in Gross Consumer Loans Receivable
Free cash flow from operations before net growth in gross consumer loans receivable is a non-IFRS measure. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 42 of the Company's MD&A for the year ended December 31, 2024. Items used to calculate free cash flow from operations before net growth in gross consumer loans receivable for the three-month periods and years ended December 31, 2024 and 2023 include those indicated in the chart below:
Three Months Ended |
Year Ended |
|||
December 31, 2024 |
December 31, 2023 |
December 31, 2024 |
December 31, 2023 |
|
Cash used in operating activities |
(17,585) |
(129,784) |
(469,446) |
(473,217) |
Net growth in gross consumer loans |
202,762 |
214,926 |
950,913 |
850,508 |
Free cash flows from operations before |
185,177 |
85,142 |
481,467 |
377,291 |
Adjusted Return on Receivables
Adjusted return on receivables is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 42 of the Company's MD&A for the year ended December 31, 2024. Items used to calculate adjusted return on assets for the three-month periods and years ended December 31, 2024 and 2023 include those indicated in the chart below:
Three Months Ended |
||||
($in 000's except percentages) |
December 31, 2024 |
December 31, 2024 (adjusted) |
December 31, 2023 |
December 31, 2023 (adjusted) |
Net income as stated |
73,825 |
73,825 |
74,602 |
74,602 |
After-tax impact of adjusting items1 |
- |
3,574 |
- |
(5,641) |
Adjusted net income |
73,825 |
77,399 |
74,602 |
68,961 |
Multiplied by number of periods in a year |
X 4 |
X 4 |
X 4 |
X 4 |
Divided by average gross consumer |
4,536,022 |
4,536,022 |
3,577,393 |
3,577,393 |
Return on receivables |
6.5 % |
6.8 % |
8.3 % |
7.7 % |
1 For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section. |
Year Ended |
||||
($in 000's except percentages) |
December 31, 2024 |
December 31, 2024 (adjusted) |
December 31, 2023 |
December 31, 2023 (adjusted) |
Net income as stated |
283,110 |
283,110 |
247,898 |
247,898 |
After-tax impact of adjusting items1 |
- |
7,032 |
- |
(4,723) |
Adjusted net income |
283,110 |
290,142 |
247,898 |
243,175 |
Divided by average gross consumer |
4,167,684 |
4,167,684 |
3,245,686 |
3,245,686 |
Return on receivables |
6.8 % |
7.0 % |
7.6 % |
7.5 % |
1 For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section. |
Adjusted Return on Assets
Adjusted return on assets is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 42 of the Company's MD&A for the year ended December 31, 2024. Items used to calculate adjusted return on assets for the three-month periods and years ended December 31, 2024 and 2023 include those indicated in the chart below:
Three Months Ended |
||||
($in 000's except percentages) |
December 31, 2024 |
December 31, 2024 (adjusted) |
December 31, 2023 |
December 31, 2023 (adjusted) |
Net income as stated |
73,825 |
73,825 |
74,602 |
74,602 |
After-tax impact of adjusting items1 |
- |
3,574 |
- |
(5,641) |
Adjusted net income |
73,825 |
77,399 |
74,602 |
68,961 |
Multiplied by number of periods in a year |
X 4 |
X 4 |
X 4 |
X 4 |
Divided by average total assets for the |
5,043,428 |
5,043,428 |
4,050,068 |
4,050,068 |
Return on assets |
5.9 % |
6.1 % |
7.4 % |
6.8 % |
1 For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section. |
Year Ended |
||||
($in 000's except percentages) |
December 31, 2024 |
December 31, 2024 (adjusted) |
December 31, 2023 |
December 31, 2023 (adjusted) |
Net income as stated |
283,110 |
283,110 |
247,898 |
247,898 |
After-tax impact of adjusting items1 |
- |
7,032 |
- |
(4,723) |
Adjusted net income |
283,110 |
290,142 |
247,898 |
243,175 |
Divided by average total assets for the |
4,658,528 |
4,658,528 |
3,715,531 |
3,715,531 |
Return on assets |
6.1 % |
6.2 % |
6.7 % |
6.5 % |
1 For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section. |
Adjusted Return on Equity
Adjusted return on equity is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 42 of the Company's MD&A for the year ended December 31, 2024. Items used to calculate adjusted return on equity for the three-month periods and years ended December 31, 2024 and 2023 include those indicated in the chart below:
Three Months Ended |
||||
($in 000's except percentages) |
December 31, 2024 |
December 31, 2024 (adjusted) |
December 31, 2023 |
December 31, 2023 (adjusted) |
Net income as stated |
73,825 |
73,825 |
74,602 |
74,602 |
After-tax impact of adjusting items1 |
- |
3,574 |
- |
(5,641) |
Adjusted net income |
73,825 |
77,399 |
74,602 |
68,961 |
Multiplied by number of periods in a year |
X 4 |
X 4 |
X 4 |
X 4 |
Divided by average shareholders' equity |
1,196,902 |
1,196,902 |
1,033,259 |
1,033,259 |
Return on equity |
24.7 % |
25.9 % |
28.9 % |
26.7 % |
1 For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section. |
Year Ended |
||||
($in 000's except percentages) |
December 31, 2024 |
December 31, 2024 (adjusted) |
December 31, 2023 |
December 31, 2023 (adjusted) |
Net income as stated |
283,110 |
283,110 |
247,898 |
247,898 |
After-tax impact of adjusting items1 |
- |
7,032 |
- |
(4,723) |
Adjusted net income |
283,110 |
290,142 |
247,898 |
243,175 |
Divided by average shareholders' equity |
1,139,198 |
1,139,198 |
958,322 |
958,322 |
Return on equity |
24.9 % |
25.5 % |
25.9 % |
25.4 % |
1 For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section. |
Reported and Adjusted Return on Tangible Common Equity
Reported and adjusted return on tangible common equity are non-IFRS ratios. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 42 of the Company's MD&A for the year ended December 31, 2024. Items used to calculate reported and adjusted return on tangible common equity for the three-month periods and years ended December 31, 2024 and 2023 include those indicated in the chart below:
Three Months Ended |
||||
($ in 000's except percentages) |
December 31, 2024 |
December 31, 2024 (adjusted) |
December 31, 2023 |
December 31, 2023 (adjusted) |
Net income as stated |
73,825 |
73,825 |
74,602 |
74,602 |
Amortization of acquired intangible assets |
3,275 |
3,275 |
3,275 |
3,275 |
Income tax impact of the above item |
(868) |
(868) |
(868) |
(868) |
Net income before amortization of |
76,232 |
76,232 |
77,009 |
77,009 |
Impact of adjusting items1 |
||||
Other operating expenses |
||||
Integration costs |
- |
92 |
- |
131 |
Other income |
- |
(6,105) |
- |
(1,310) |
Finance costs |
||||
Refinancing costs related to Notes |
- |
9,429 |
- |
9,501 |
Discount on the repurchase of Notes |
- |
(1,487) |
- |
- |
Fair value change on prepayment |
- |
761 |
- |
(19,035) |
Total pre-tax impact of adjusting items |
- |
2,690 |
- |
(10,713) |
Income tax impact of above adjusting |
(1,523) |
- |
2,665 |
|
After-tax impact of adjusting items |
- |
1,167 |
- |
(8,048) |
Adjusted net income |
76,232 |
77,399 |
77,009 |
68,961 |
Multiplied by number of periods in a year |
X 4 |
X 4 |
X 4 |
X 4 |
Average shareholders' equity |
1,196,902 |
1,196,902 |
1,033,259 |
1,033,259 |
Average goodwill |
(180,923) |
(180,923) |
(180,923) |
(180,923) |
Average acquired intangible assets2 |
(84,604) |
(84,604) |
(97,704) |
(97,704) |
Average related deferred tax liabilities |
22,420 |
22,420 |
25,892 |
25,892 |
Divided by average tangible common |
953,795 |
953,795 |
780,524 |
780,524 |
Return on tangible common equity |
32.0 % |
32.5 % |
39.5 % |
35.3 % |
1 For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section. |
2 Excludes intangible assets relating to software. |
Year Ended |
||||
($ in 000's except percentages) |
December 31, 2024 |
December 31, 2024 (adjusted) |
December 31, 2023 |
December 31, 2023 (adjusted) |
Net income as stated |
283,110 |
283,110 |
247,898 |
247,898 |
Amortization of acquired intangible assets |
13,100 |
13,100 |
13,100 |
13,100 |
Income tax impact of the above item |
(3,471) |
(3,471) |
(3,471) |
(3,471) |
Net income before amortization of |
292,739 |
292,739 |
257,527 |
257,527 |
Impact of adjusting items1 |
||||
Other operating expenses |
||||
Advisory costs |
- |
4,941 |
- |
- |
Integration costs |
- |
497 |
- |
608 |
Contract exit fee |
- |
- |
934 |
|
Other income |
- |
(3,132) |
- |
(9,771) |
Finance costs |
||||
Refinancing costs related to Notes |
- |
9,429 |
- |
9,501 |
Discount on the repurchase of Notes |
- |
(1,487) |
- |
- |
Fair value change on prepayment |
- |
(13,216) |
- |
(19,035) |
Total pre-tax impact of adjusting items |
- |
(2,968) |
- |
(17,763) |
Income tax impact of above adjusting |
- |
371 |
- |
3,411 |
After-tax impact of adjusting items |
- |
(2,597) |
- |
(14,352) |
Adjusted net income |
292,739 |
290,142 |
257,527 |
243,175 |
Average shareholders' equity |
1,139,198 |
1,139,198 |
958,322 |
958,322 |
Average goodwill |
(180,923) |
(180,923) |
(180,923) |
(180,923) |
Average acquired intangible assets2 |
(89,517) |
(89,517) |
(102,617) |
(102,617) |
Average related deferred tax liabilities |
23,722 |
23,722 |
27,194 |
27,194 |
Divided by average tangible common |
892,480 |
892,480 |
701,976 |
701,976 |
Return on tangible common equity |
32.8 % |
32.5 % |
36.7 % |
34.6 % |
1 For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section. |
2 Excludes intangible assets relating to software. |
easyhome Financial Revenue
easyhome financial revenue is a non-IFRS measure. It is calculated as total company revenue less easyfinancial revenue and leasing revenue. The Company believes that easyhome financial revenue is an important measure of the performance of the easyhome segment. Items used to calculate easyhome financial revenue for the three-month periods ended December 31, 2024 and 2023 include those indicated in the chart below:
($in 000's) |
Three Months Ended |
|
December 31, 2024 |
December 31, 2023 |
|
Total company revenue |
405,185 |
338,112 |
Less: easyfinancial revenue |
(367,344) |
(299,465) |
Less: leasing revenue |
(24,612) |
(26,236) |
easyhome financial revenue |
13,229 |
12,411 |
Total Yield on Consumer Loans as a Percentage of Average Gross Consumer Loans Receivable
Total yield on consumer loans as a percentage of average gross consumer loans receivable is a non-IFRS ratio. See description in section "Portfolio Analysis" on page 31 of the Company's MD&A for the year ended December 31, 2024. Items used to calculate total yield on consumer loans as a percentage of average gross consumer loans receivable for the three-month periods and years ended December 31, 2024 and 2023 include those indicated in the chart below::
Three Months Ended |
Year Ended |
|||
($in 000's except percentages) |
December 31, 2024 |
December 31, 2023 |
December 31, 2024 |
December 31, 2023 |
Total Company revenue |
405,185 |
338,112 |
1,523,289 |
1,250,069 |
Less: Leasing revenue |
(24,612) |
(26,236) |
(101,129) |
(105,925) |
Financial revenue |
380,573 |
311,876 |
1,422,160 |
1,144,144 |
Multiplied by number of periods in a year |
X 4 |
X 4 |
X 4/4 |
X 4/4 |
Divided by average gross consumer |
4,536,022 |
3,577,393 |
4,167,684 |
3,245,686 |
Total yield on consumer loans as a |
33.6 % |
34.9 % |
34.1 % |
35.3 % |
Net Principal Written and Percentage Net Principal Written to New Customers
Net principal written (Net loan advances) is a non-IFRS measure. See description in section "Portfolio Analysis" on page 31 of the Company's MD&A for the year ended December 31, 2024. The percentage of net loan advances to new customers is a non-IFRS ratio. It is calculated as loan originations to new customers divided by the net principal written. The Company uses percentage of net loan advances to new customers, among other measures, to assess the operating performance of its lending business. Items used to calculate the percentage of net loan advances to new customers for the three-month periods ended December 31, 2024 and 2023 include those indicated in the chart below:
Three Months Ended |
Year Ended |
|||
($ in 000's) |
December 31, 2024 |
December 31, 2023 |
December 31, 2024 |
December 31, 2023 |
Gross loan originations |
813,689 |
704,875 |
3,166,227 |
2,709,194 |
Loan originations to new customers |
428,753 |
345,339 |
1,701,171 |
1,354,907 |
Loan originations to existing customers |
384,936 |
359,536 |
1,465,056 |
1,354,287 |
Less: Proceeds applied to repay existing |
(207,416) |
(191,978) |
(766,764) |
(724,702) |
Net advance to existing customers |
177,520 |
167,558 |
698,292 |
629,585 |
Net principal written |
606,273 |
512,897 |
2,399,463 |
1,984,492 |
Percentage net advances to new |
71 % |
67 % |
71 % |
68 % |
Net Debt to Net Capitalization
Net debt to net capitalization is a capital management measure. Refer to "Financial Condition" section on page 54 of the Company's MD&A for the year ended December 31, 2024.
Average Loan Book Per Branch
Average loan book per branch is a supplementary financial measure. It is calculated as gross consumer loans receivable held by easyfinancial branch locations divided by the number of total easyfinancial branch locations.
Weighted Average Interest Rate
Weighted average interest rate is a supplementary financial measure. It is calculated as the sum of individual loan balance multiplied by interest rate divided by gross consumer loans receivable.
SOURCE goeasy Ltd
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