Quarterly Loan Originations of
Loan Portfolio of
Quarterly Net Charge Off Rate of 8.8%, down 20 bps from 9.0%
Quarterly Diluted EPS of
Annual Diluted EPS of
Annual Dividend per Share Increased to
Fourth Quarter Results
During the quarter, the Company generated loan originations of
The increase in loan originations led to growth in the loan portfolio of
During the quarter, the Company continued to experience stable credit and payment performance. The net charge off rate in the fourth quarter was 8.8%, down 20 basis points from 9.0% in the fourth quarter of 2022, and at the lower end of the Company’s forecasted range of between 8.5% and 9.5%. The stable credit performance reflects the improved credit and product mix of the loan portfolio and proactive credit and underwriting enhancements. The Company’s allowance for future credit losses reduced slightly to 7.28%, compared to 7.37% in the third quarter.
Operating income for the fourth quarter of 2023 was a record
Net income in the fourth quarter was
“The fourth quarter rounded out another record year for the company, in which we issued over
Other Key Fourth Quarter Highlights
easyfinancial
- Record revenue of
$299 million , up 27% - 42% of the loan portfolio secured, up from 39%
- Record volume of applications for credit, up 29%
- New customer volume at 40,300, up 15%
- 67% of net loan advances1 in the quarter were issued to new customers, up from 66%
- Record volume of originations in automotive financing
- Average loan book per branch3 improved to a record
$5.7 million , an increase of 18% - Weighted average interest rate3 on consumer loans of 30.3%, down slightly from 30.5%
- Record operating income of
$150 million , up 41%
easyhome
- Revenue of
$38.6 million , up 3% - Consumer loan portfolio within easyhome stores increased to
$106.3 million , up 20% - Financial revenue2 from consumer lending increased to
$12.4 million , up 16% - Operating income of
$9.4 million , up 8%
Overall
- 90th consecutive quarter of positive net income
- 2024 marks the 20th consecutive year of paying dividends and the 10th consecutive year of a dividend increase
- 55th consecutive quarter of same store revenue growth
- Total customers served over 1.3 million
- Acquired and organically originated over
$12.8 billion in loans - Adjusted return on equity1 of 26.7%, up from 24.6%
- Adjusted return on tangible common equity1 of 35.3%, consistent with 35.9%
- Fully drawn weighted average cost of borrowing at 6.9%, up from 5.5%
- Net debt to net capitalization4 of 72% on
December 31, 2023 , in line with the Company’s target leverage profile
Full Year Results
For the year of 2023, the Company funded a record
For the year of 2023, the Company produced record revenues of
Net income for the year was
Balance Sheet and Liquidity
Total assets were
During the quarter, the Company implemented several enhancements to its balance sheet, including increasing the Automotive Securitization Facility by
The amendment to the Automotive Securitization Facility incorporates key modifications including improved eligibility criteria for automotive consumer loans, as well as pool concentration limits, resulting in increased funding capacity. The maturity of the Automotive Securitization Facility was also extended by a year to
In
During the quarter, the Company recognized net investment income of
Free cash flow from operations before net growth in gross consumer loans receivable2 in the quarter was
At quarter-end, the Company’s weighted average cost of borrowing was 6.4%, and the fully drawn weighted average cost of borrowing was 6.9%. The Company estimates that it could currently grow the consumer loan portfolio by approximately
Future Outlook
The Company has provided a new 3-year forecast for the years 2024 through 2026. The periods of 2024 and 2025 have been updated to reflect the most recent outlook and assume that the previously announced new legislation to reduce the maximum allowable rate of interest to an annual percentage rate of 35% becomes effective mid-year 2024, though the enforcement date has yet to be announced. Furthermore, the company employs the use of probability weighted third party economic forecasts to establish its economic outlook. Based on those forecasts, the Company assumes that
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.
Forecast for 2024 | Forecast for 2025 | Forecast for 2026 | |
Gross consumer loans receivable at year end | |||
Total yield on consumer loans (including ancillary products)1 | 33.0% - 35.0% | 31.0% - 33.0% | 29.5% - 31.5% |
Net charge offs as a percentage of average gross consumer loans receivable | 8.0% - 10.0% | 7.5% - 9.5% | 7.25% - 9.25% |
39%+ | 40%+ | 41%+ | |
Return on equity | 21%+ | 21%+ | 21%+ |
Dividend
Based on its 2023 adjusted earnings and the Company’s confidence in its continued growth and access to capital going forward, the Board of Directors has approved an increase to the annual dividend from
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,
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.
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:
President & Chief Executive Officer
(905) 272-2788
Senior Vice President, Chief Corporate Development Officer
(905) 272-2788
Notes:
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 | |||
2023 | 2022 | |||
ASSETS | ||||
Cash | 144,577 | 62,654 | ||
Accounts receivable | 30,762 | 25,697 | ||
Prepaid expenses | 9,462 | 8,334 | ||
Income taxes recoverable | - | 2,323 | ||
Consumer loans receivable, net | 3,447,588 | 2,627,357 | ||
Investments | 61,464 | 57,304 | ||
Lease assets | 45,187 | 48,437 | ||
Derivative financial assets | 21,904 | 49,444 | ||
Property and equipment, net | 35,382 | 35,856 | ||
Right-of-use assets, net | 61,987 | 65,758 | ||
Intangible assets, net | 124,931 | 138,802 | ||
180,923 | 180,923 | |||
TOTAL ASSETS | 4,164,167 | 3,302,889 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Liabilities | ||||
Revolving credit facility | 190,921 | 148,646 | ||
Accounts payable and accrued liabilities | 72,409 | 51,136 | ||
Income taxes payable | 24,691 | - | ||
Dividends payable | 15,960 | 14,965 | ||
Unearned revenue | 26,965 | 28,661 | ||
Accrued interest | 12,875 | 10,159 | ||
Deferred income tax liabilities, net | 24,259 | 24,692 | ||
Lease liabilities | 70,809 | 74,328 | ||
Secured borrowings | 143,177 | 105,792 | ||
Revolving securitization warehouse facilities | 1,364,741 | 805,825 | ||
Derivative financial liabilities | 42,457 | - | ||
Notes payable | 1,120,826 | 1,168,997 | ||
TOTAL LIABILITIES | 3,110,090 | 2,433,201 | ||
Shareholders' equity | ||||
Share capital | 428,328 | 419,046 | ||
Contributed surplus | 24,817 | 21,499 | ||
Accumulated other comprehensive (loss) income | (9,721 | ) | 2,776 | |
Retained earnings | 610,653 | 426,367 | ||
TOTAL SHAREHOLDERS' EQUITY | 1,054,077 | 869,688 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 4,164,167 | 3,302,889 | ||
goeasy Ltd. | ||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||
(Expressed in thousands of Canadian dollars, except earnings per share) | ||||||||
Three Months Ended | Year Ended | |||||||
2023 | 2022 | 2023 | 2022 | |||||
REVENUE | ||||||||
Interest income | 244,668 | 191,320 | 888,928 | 698,150 | ||||
Lease revenue | 24,691 | 25,219 | 99,848 | 103,414 | ||||
Commissions earned | 61,510 | 51,389 | 234,485 | 197,159 | ||||
Charges and fees | 7,243 | 5,398 | 26,808 | 20,613 | ||||
338,112 | 273,326 | 1,250,069 | 1,019,336 | |||||
OPERATING EXPENSES | ||||||||
BAD DEBTS | 91,570 | 78,257 | 341,639 | 272,893 | ||||
OTHER OPERATING EXPENSES | ||||||||
Salaries and benefits | 49,322 | 43,526 | 200,917 | 174,236 | ||||
Share-based compensation | 3,678 | 2,621 | 12,938 | 10,053 | ||||
Advertising and promotion | 8,305 | 7,942 | 31,020 | 34,069 | ||||
Occupancy | 6,269 | 6,406 | 25,405 | 25,234 | ||||
Technology costs | 7,410 | 7,489 | 28,402 | 23,463 | ||||
Underwriting and collections | 4,231 | 3,606 | 16,564 | 13,930 | ||||
Loss on sale or write off of assets | - | 20,549 | - | 20,549 | ||||
Other expenses | 8,519 | 7,804 | 30,335 | 31,196 | ||||
87,734 | 99,943 | 345,581 | 332,730 | |||||
DEPRECIATION AND AMORTIZATION | ||||||||
Depreciation of lease assets | 8,207 | 8,516 | 33,535 | 33,547 | ||||
Amortization of intangible assets | 5,552 | 3,029 | 21,999 | 18,406 | ||||
Depreciation of right-of-use assets | 5,420 | 5,249 | 21,260 | 20,160 | ||||
Depreciation of property and equipment | 2,392 | 2,451 | 9,537 | 9,193 | ||||
21,571 | 19,245 | 86,331 | 81,306 | |||||
TOTAL OPERATING EXPENSES | 200,875 | 197,445 | 773,551 | 686,929 | ||||
OPERATING INCOME | 137,237 | 75,881 | 476,518 | 332,407 | ||||
OTHER INCOME (LOSS) | 1,310 | (5,609 | ) | 9,771 | (28,659 | ) | ||
FINANCE COSTS | (36,580 | ) | (31,551 | ) | (149,334 | ) | (107,972 | ) |
INCOME BEFORE INCOME TAXES | 101,967 | 38,721 | 336,955 | 195,776 | ||||
INCOME TAX EXPENSE (RECOVERY) | ||||||||
Current | 22,994 | 11,216 | 90,809 | 65,659 | ||||
Deferred | 4,371 | (1,071 | ) | (1,752 | ) | (10,044 | ) | |
27,365 | 10,145 | 89,057 | 55,615 | |||||
NET INCOME | 74,602 | 28,576 | 247,898 | 140,161 | ||||
BASIC EARNINGS PER SHARE | 4.41 | 1.74 | 14.70 | 8.61 | ||||
DILUTED EARNINGS PER SHARE | 4.34 | 1.71 | 14.48 | 8.42 | ||||
SEGMENT REPORTING | ||||||
(Expressed in thousands of Canadian dollars, except earnings per share) | ||||||
Three Months Ended | ||||||
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 | |||||
Three Months Ended | ||||||
easyfinancial | easyhome | Corporate | Total | |||
Revenue | ||||||
Interest income | 183,345 | 7,975 | - | 191,320 | ||
Lease revenue | - | 25,219 | - | 25,219 | ||
Commissions earned | 48,023 | 3,366 | - | 51,389 | ||
Charges and fees | 4,518 | 880 | - | 5,398 | ||
235,886 | 37,440 | - | 273,326 | |||
Operating expenses | ||||||
Bad debts | 75,224 | 3,033 | - | 78,257 | ||
Other operating expenses | 47,539 | 14,948 | 37,456 | 99,943 | ||
Depreciation and amortization | 6,846 | 10,772 | 1,627 | 19,245 | ||
129,609 | 28,753 | 39,083 | 197,445 | |||
Operating income (loss) | 106,277 | 8,687 | (39,083 | ) | 75,881 | |
Other loss | (5,609 | ) | ||||
Finance costs | (31,551 | ) | ||||
Income before income taxes | 38,721 | |||||
Income taxes | 10,145 | |||||
Net income | 28,576 | |||||
Diluted earnings per share | 1.71 | |||||
Year Ended | ||||||
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 | |||||
Year Ended | ||||||
easyfinancial | easyhome | Corporate | Total | |||
Revenue | ||||||
Interest income | 668,779 | 29,371 | - | 698,150 | ||
Lease revenue | - | 103,414 | - | 103,414 | ||
Commissions earned | 184,013 | 13,146 | - | 197,159 | ||
Charges and fees | 16,736 | 3,877 | - | 20,613 | ||
869,528 | 149,808 | - | 1,019,336 | |||
Operating expenses | ||||||
Bad debts | 261,997 | 10,896 | - | 272,893 | ||
Other operating expenses | 180,867 | 61,748 | 90,115 | 332,730 | ||
Depreciation and amortization | 32,668 | 42,586 | 6,052 | 81,306 | ||
475,532 | 115,230 | 96,167 | 686,929 | |||
Operating income (loss) | 393,996 | 34,578 | (96,167 | ) | 332,407 | |
Other loss | (28,659 | ) | ||||
Finance costs | (107,972 | ) | ||||
Income before income taxes | 195,776 | |||||
Income taxes | 55,615 | |||||
Net income | 140,161 | |||||
Diluted earnings per share | 8.42 | |||||
SUMMARY OF FINANCIAL RESULTS AND KEY PERFORMANCE INDICATORS | ||||
(Expressed in thousands of Canadian dollars, except earnings per share and percentages) | ||||
Three Months Ended | ||||
Variance | Variance | |||
2023 | 2022 | $ / bps | % change | |
Summary Financial Results | ||||
Revenue | 338,112 | 273,326 | 64,786 | 23.7% |
Bad debts | 91,570 | 78,257 | 13,313 | 17.0% |
Other operating expenses | 87,734 | 99,943 | (12,209) | (12.2%) |
EBITDA1 | 151,911 | 81,001 | 70,910 | 87.5% |
EBITDA margin1 | 44.9% | 29.6% | 1,530 bps | 51.7% |
Depreciation and amortization | 21,571 | 19,245 | 2,326 | 12.1% |
Operating income | 137,237 | 75,881 | 61,356 | 80.9% |
Operating margin | 40.6% | 27.8% | 1,280 bps | 46.0% |
Other income | 1,310 | (5,609) | 6,919 | 123.4% |
Finance costs | 36,580 | 31,551 | 5,029 | 15.9% |
Effective income tax rate | 26.8% | 26.2% | 60 bps | 2.3% |
Net income | 74,602 | 28,576 | 46,026 | 161.1% |
Diluted earnings per share | 4.34 | 1.71 | 2.63 | 153.8% |
Return on receivables | 8.3% | 4.2% | 410 bps | 97.6% |
Return on assets | 7.4% | 3.6% | 380 bps | 105.6% |
Return on equity | 28.9% | 13.8% | 1,510 bps | 109.4% |
Return on tangible common equity1 | 39.5% | 21.8% | 1,770 bps | 81.2% |
Adjusted Financial Results1 | ||||
Other operating expenses | 95,810 | 87,877 | 7,933 | 9.0% |
Efficiency ratio | 28.3% | 32.2% | (390 bps) | (12.1%) |
Operating income | 140,643 | 99,738 | 40,905 | 41.0% |
Operating margin | 41.6% | 36.5% | 510 bps | 14.0% |
Net income | 68,961 | 51,026 | 17,935 | 35.1% |
Diluted earnings per share | 4.01 | 3.05 | 0.96 | 31.5% |
Return on receivables | 7.7% | 7.5% | 20 bps | 2.7% |
Return on assets | 6.8% | 6.3% | 50 bps | 7.9% |
Return on equity | 26.7% | 24.6% | 210 bps | 8.5% |
Return on tangible common equity | 35.3% | 35.9% | (60 bps) | (1.7%) |
Key Performance Indicators | ||||
Segment Financials | ||||
easyfinancial revenue | 299,465 | 235,886 | 63,579 | 27.0% |
easyfinancial operating margin | 50.2% | 45.1% | 510 bps | 11.3% |
easyhome revenue | 38,647 | 37,440 | 1,207 | 3.2% |
easyhome operating margin | 24.3% | 23.2% | 110 bps | 4.7% |
Portfolio Indicators | ||||
Gross consumer loans receivable | 3,645,202 | 2,794,694 | 850,508 | 30.4% |
Growth in consumer loans receivable | 214,926 | 206,038 | 8,888 | 4.3% |
Gross loan originations | 704,875 | 632,355 | 72,520 | 11.5% |
Total yield on consumer loans (including ancillary products)1 | 34.9% | 36.2% | (130 bps) | (3.6%) |
Net charge offs as a percentage of average gross consumer loans receivable | 8.8% | 9.0% | (20 bps) | (2.2%) |
Free cash flows from operations before net growth in gross consumer loans receivable1 | 85,142 | 66,040 | 19,102 | 28.9% |
Potential monthly leasing revenue1 | 7,654 | 7,868 | (214) | (2.7%) |
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 | ||||
Variance | Variance | |||
2023 | 2022 | $ / bps | % change | |
Summary Financial Results | ||||
Revenue | 1,250,069 | 1,019,336 | 230,733 | 22.6% |
Bad debts | 341,639 | 272,893 | 68,746 | 25.2% |
Other operating expenses | 345,581 | 332,730 | 12,851 | 3.9% |
EBITDA1 | 539,085 | 351,507 | 187,578 | 53.4% |
EBITDA margin1 | 43.1% | 34.5% | 860 bps | 24.9% |
Depreciation and amortization | 86,331 | 81,306 | 5,025 | 6.2% |
Operating income | 476,518 | 332,407 | 144,111 | 43.4% |
Operating margin | 38.1% | 32.6% | 550 bps | 16.9% |
Other income (loss) | 9,771 | (28,659) | 38,430 | 134.1% |
Finance costs | 149,334 | 107,972 | 41,362 | 38.3% |
Effective income tax rate | 26.4% | 28.4% | (200 bps) | (7.0%) |
Net income | 247,898 | 140,161 | 107,737 | 76.9% |
Diluted earnings per share | 14.48 | 8.42 | 6.06 | 72.0% |
Return on receivables | 7.6% | 5.8% | 180 bps | 31.0% |
Return on assets | 6.7% | 4.8% | 190 bps | 39.6% |
Return on equity | 25.9% | 17.6% | 830 bps | 47.2% |
Return on tangible common equity1 | 36.7% | 28.4% | 830 bps | 29.2% |
Adjusted Financial Results1 | ||||
Other operating expenses | 377,574 | 342,422 | 35,152 | 10.3% |
Efficiency ratio | 30.2% | 33.6% | (340 bps) | (10.1%) |
Operating income | 491,160 | 369,362 | 121,798 | 33.0% |
Operating margin | 39.3% | 36.2% | 310 bps | 8.6% |
Net income | 243,175 | 192,261 | 50,914 | 26.5% |
Diluted earnings per share | 14.21 | 11.55 | 2.66 | 23.0% |
Return on receivables | 7.5% | 8.0% | (50 bps) | (6.3%) |
Return on assets | 6.5% | 6.6% | (10 bps) | (1.5%) |
Return on equity | 25.4% | 24.2% | 120 bps | 5.0% |
Return on tangible common equity | 34.6% | 36.4% | (180 bps) | (4.9%) |
Key Performance Indicators | ||||
Segment Financials | ||||
easyfinancial revenue | 1,096,817 | 869,528 | 227,289 | 26.1% |
easyfinancial operating margin | 48.7% | 45.3% | 340 bps | 7.5% |
easyhome revenue | 153,252 | 149,808 | 3,444 | 2.3% |
easyhome operating margin | 24.1% | 23.1% | 100 bps | 4.3% |
Portfolio Indicators | ||||
Gross consumer loans receivable | 3,645,202 | 2,794,694 | 850,508 | 30.4% |
Growth in consumer loans receivable | 850,508 | 764,355 | 86,153 | 11.3% |
Gross loan originations | 2,709,194 | 2,377,606 | 331,588 | 13.9% |
Total yield on consumer loans (including ancillary products)1 | 35.3% | 37.7% | (240 bps) | (6.4%) |
Net charge offs as a percentage of average gross consumer loans receivable | 8.9% | 9.1% | (20 bps) | (2.2%) |
Free cash flows from operations before net growth in gross consumer loans receivable1 | 377,291 | 258,474 | 118,817 | 46.0% |
Potential monthly leasing revenue1 | 7,654 | 7,868 | (214) | (2.7%) |
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, adjust 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
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 43 of the Company’s MD&A for the year ended
Three Months Ended | Year Ended | |||||||
($ in 000’s except earnings per share) | 2023 | 2022 | 2023 | 2022 | ||||
Net income as stated | 74,602 | 28,576 | 247,898 | 140,161 | ||||
Impact of adjusting items | ||||||||
Other operating expenses | ||||||||
Contract exit fee1 | - | - | 934 | - | ||||
Integration costs2 | 131 | 122 | 608 | 1,081 | ||||
Write off of an intangible asset1 | - | 20,460 | - | 20,460 | ||||
Corporate development costs4 | - | - | - | 2,314 | ||||
Depreciation and amortization | ||||||||
Amortization of acquired intangible assets3 | 3,275 | 3,275 | 13,100 | 13,100 | ||||
Other (income) loss5 | (1,310 | ) | 5,609 | (9,771 | ) | 28,659 | ||
Finance costs | ||||||||
Refinancing costs related to notes payable6 | 9,501 | - | 9,501 | - | ||||
Fair value change on prepayment options related to 2028 Notes7 | (19,035 | ) | - | (19,035 | ) | - | ||
Total pre-tax impact of adjusting items | (7,438 | ) | 29,466 | (4,663 | ) | 65,614 | ||
Income tax impact of above adjusting items | 1,797 | (7,016 | ) | (60 | ) | (13,514 | ) | |
After-tax impact of adjusting items | (5,641 | ) | 22,450 | (4,723 | ) | 52,100 | ||
Adjusted net income | 68,961 | 51,026 | 243,175 | 192,261 | ||||
Weighted average number of diluted shares outstanding | 17,207 | 16,753 | 17,117 | 16,650 | ||||
Diluted earnings per share as stated | 4.34 | 1.71 | 14.48 | 8.42 | ||||
Per share impact of adjusting items | (0.33 | ) | 1.34 | (0.27 | ) | 3.13 | ||
Adjusted diluted earnings per share | 4.01 | 3.05 | 14.21 | 11.55 | ||||
Adjusting items related to the write off of an intangible asset
1 In the fourth quarter of 2022, the Company decided to terminate its agreement with a third-party technology provider that was contracted in 2020 to develop a new loan management system. After careful evaluation, the Company determined that the performance to date was unsatisfactory, and the additional investment necessary to complete the development was no longer economical, relative to the anticipated business value and other available options. As such, the Company elected to write off capitalized software costs in 2022 in the amount of
Adjusting items related to the LendCare Acquisition
2 Integration costs related to advisory and consulting costs, employee incentives, representation and warranty insurance costs, and other integration costs related to the acquisition of LendCare.
3 Amortization of the
Adjusting items related to the corporate development costs
4 Corporate development costs in the first quarter of 2022 were related to the exploration of a strategic acquisition opportunity, which the Company elected to not pursue, including advisory, consulting and legal costs.
Adjusting item related to other income (loss)
5 For the three-month periods and years ended
Adjusting item related to the refinancing of 2024 Notes
6 During the fourth quarter of 2023, the Company repaid its 2024 Notes that would have matured on
Adjusting item related to prepayment options embedded in the 2028 Notes
7 For the three-month period and year ended
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 43 of the Company’s MD&A for the year ended
Three Months Ended | Year Ended | |||||||
($ in 000’s except earnings per share) | 2023 | 2022 | 2023 | 2022 | ||||
Other operating expenses as stated | 87,734 | 99,943 | 345,581 | 332,730 | ||||
Impact of adjusting items1 | ||||||||
Other operating expenses | ||||||||
Contract exit fee | - | - | (934 | ) | - | |||
Integration costs | (131 | ) | (122 | ) | (608 | ) | (1,081 | ) |
Write off of an intangible asset | - | (20,460 | ) | - | (20,460 | ) | ||
Corporate development costs | - | - | - | (2,314 | ) | |||
Depreciation and amortization | ||||||||
Depreciation of lease assets | 8,207 | 8,516 | 33,535 | 33,547 | ||||
Total impact of adjusting items | 8,076 | (12,066 | ) | 31,993 | 9,692 | |||
Adjusted other operating expenses | 95,810 | 87,877 | 377,574 | 342,422 | ||||
Total revenue | 338,112 | 273,326 | 1,250,069 | 1,019,336 | ||||
Efficiency ratio | 28.3 | % | 32.2 | % | 30.2 | % | 33.6 | % |
1 For explanation of adjusting items, refer to the corresponding “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section.
Adjusted Operating Income and 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 43 of the Company’s MD&A for the year ended
Three Months Ended | ||||||||
($ in 000’s except percentages) | 2023 | 2023 (adjusted) | 2022 | 2022 (adjusted) | ||||
easyfinancial | ||||||||
Operating income | 150,242 | 150,242 | 106,277 | 106,277 | ||||
Divided by revenue | 299,465 | 299,465 | 235,886 | 235,886 | ||||
easyfinancial operating margin | 50.2 | % | 50.2 | % | 45.1 | % | 45.1 | % |
easyhome | ||||||||
Operating income | 9,404 | 9,404 | 8,687 | 8,687 | ||||
Divided by revenue | 38,647 | 38,647 | 37,440 | 37,440 | ||||
easyhome operating margin | 24.3 | % | 24.3 | % | 23.2 | % | 23.2 | % |
Total | ||||||||
Operating income | 137,237 | 137,237 | 75,881 | 75,881 | ||||
Other operating expenses1 | ||||||||
Integration costs | - | 131 | - | 122 | ||||
Write off of an intangible asset | - | - | - | 20,460 | ||||
Depreciation and amortization1 | ||||||||
Amortization of acquired intangible assets | - | 3,275 | - | 3,275 | ||||
Adjusted operating income | 137,237 | 140,643 | 75,881 | 99,738 | ||||
Divided by revenue | 338,112 | 338,112 | 273,326 | 273,326 | ||||
Total operating margin | 40.6 | % | 41.6 | % | 27.8 | % | 36.5 | % |
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) | 2023 | 2023 (adjusted) | 2022 | 2022 (adjusted) | ||||
easyfinancial | ||||||||
Operating income | 534,516 | 534,516 | 393,996 | 393,996 | ||||
Divided by revenue | 1,096,817 | 1,096,817 | 869,528 | 869,528 | ||||
easyfinancial operating margin | 48.7 | % | 48.7 | % | 45.3 | % | 45.3 | % |
easyhome | ||||||||
Operating income | 36,940 | 36,940 | 34,578 | 34,578 | ||||
Divided by revenue | 153,252 | 153,252 | 149,808 | 149,808 | ||||
easyhome operating margin | 24.1 | % | 24.1 | % | 23.1 | % | 23.1 | % |
Total | ||||||||
Operating income | 476,518 | 476,518 | 332,407 | 332,407 | ||||
Other operating expenses1 | ||||||||
Contract exit fee | - | 934 | - | - | ||||
Integration costs | - | 608 | - | 1,081 | ||||
Write off of an intangible asset | - | - | - | 20,460 | ||||
Corporate development costs | - | - | - | 2,314 | ||||
Depreciation and amortization1 | ||||||||
Amortization of acquired intangible assets | - | 13,100 | - | 13,100 | ||||
Adjusted operating income | 476,518 | 491,160 | 332,407 | 369,362 | ||||
Divided by revenue | 1,250,069 | 1,250,069 | 1,019,336 | 1,019,336 | ||||
Total operating margin | 38.1 | % | 39.3 | % | 32.6 | % | 36.2 | % |
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 43 of the Company’s MD&A for the year ended
Three Months Ended | Year Ended | |||||||
($in 000’s except percentages) | 2023 | 2022 | 2023 | 2022 | ||||
Net income as stated | 74,602 | 28,576 | 247,898 | 140,161 | ||||
Finance cost | 36,580 | 31,551 | 149,334 | 107,972 | ||||
Income tax expense | 27,365 | 10,145 | 89,057 | 55,615 | ||||
Depreciation and amortization | 21,571 | 19,245 | 86,331 | 81,306 | ||||
Depreciation of lease assets | (8,207 | ) | (8,516 | ) | (33,535 | ) | (33,547 | ) |
EBITDA | 151,911 | 81,001 | 539,085 | 351,507 | ||||
Divided by revenue | 338,112 | 273,326 | 1,250,069 | 1,019,336 | ||||
EBITDA margin | 44.9 | % | 29.6 | % | 43.1 | % | 34.5 | % |
Free Cash Flow from Operations before Net Growth in Gross Consumer Loans Receivable
Free cash flow from operations before net growth in gross consumer loans receivable is a non-IFRS measure. Refer to “Key Performance Indicators and Non-IFRS Measures” section on page 43 of the Company’s MD&A for the year ended
Three Months Ended | Year Ended | |||||||
2023 | 2022 | 2023 | 2022 | |||||
Cash used in operating activities | (129,784 | ) | (139,998 | ) | (473,217 | ) | (505,881 | ) |
Net growth in gross consumer loans receivable during the period | 214,926 | 206,038 | 850,508 | 764,355 | ||||
Free cash flows from operations before net growth in gross consumer loans receivable | 85,142 | 66,040 | 377,291 | 258,474 | ||||
Adjusted Return on Receivables
Adjusted return on receivables is a non-IFRS ratio. Refer to “Key Performance Indicators and Non-IFRS Measures” section on page 43 of the Company’s MD&A for the year ended
Three Months Ended | ||||||||
($in 000’s except percentages) | 2023 | 2023 (adjusted) | 2022 | 2022 (adjusted) | ||||
Net income as stated | 74,602 | 74,602 | 28,576 | 28,576 | ||||
After-tax impact of adjusting items1 | - | (5,641 | ) | - | 22,450 | |||
Adjusted net income | 74,602 | 68,961 | 28,576 | 51,026 | ||||
Multiplied by number of periods in a year | X 4 | X 4 | X 4 | X 4 | ||||
Divided by average gross consumer loans receivable | 3,577,393 | 3,577,393 | 2,726,446 | 2,726,446 | ||||
Return on receivables | 8.3 | % | 7.7 | % | 4.2 | % | 7.5 | % |
1 For explanation of adjusting items, refer to the corresponding “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section.
Year Ended | ||||||||
($in 000’s except percentages) | 2023 | 2023 (adjusted) | 2022 | 2022 (adjusted) | ||||
Net income as stated | 247,898 | 247,898 | 140,161 | 140,161 | ||||
After-tax impact of adjusting items1 | - | (4,723 | ) | - | 52,100 | |||
Adjusted net income | 247,898 | 243,175 | 140,161 | 192,261 | ||||
Divided by average gross consumer loans receivable | 3,245,686 | 3,245,686 | 2,409,890 | 2,409,890 | ||||
Return on receivables | 7.6 | % | 7.5 | % | 5.8 | % | 8.0 | % |
1 For explanation of adjusting items, refer to the corresponding “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section.
Adjusted Return on Assets
Adjusted return on assets is a non-IFRS ratio. Refer to “Key Performance Indicators and Non-IFRS Measures” section on page 43 of the Company’s MD&A for the year ended
Three Months Ended | ||||||||
($in 000’s except percentages) | 2023 | 2023 (adjusted) | 2022 | 2022 (adjusted) | ||||
Net income as stated | 74,602 | 74,602 | 28,576 | 28,576 | ||||
After-tax impact of adjusting items1 | - | (5,641 | ) | - | 22,450 | |||
Adjusted net income | 74,602 | 68,961 | 28,576 | 51,026 | ||||
Multiplied by number of periods in a year | X 4 | X 4 | X 4 | X 4 | ||||
Divided by average total assets for the period | 4,050,068 | 4,050,068 | 3,216,403 | 3,216,403 | ||||
Return on assets | 7.4 | % | 6.8 | % | 3.6 | % | 6.3 | % |
1 For explanation of adjusting items, refer to the corresponding “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section.
Year Ended | ||||||||
($in 000’s except percentages) | 2023 | 2023 (adjusted) | 2022 | 2022 (adjusted) | ||||
Net income as stated | 247,898 | 247,898 | 140,161 | 140,161 | ||||
After-tax impact of adjusting items1 | - | (4,723 | ) | - | 52,100 | |||
Adjusted net income | 247,898 | 243,175 | 140,161 | 192,261 | ||||
Divided by average total assets for the year | 3,715,531 | 3,715,531 | 2,922,605 | 2,922,605 | ||||
Return on assets | 6.7 | % | 6.5 | % | 4.8 | % | 6.6 | % |
1 For explanation of adjusting items, refer to the corresponding “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section.
Adjusted Return on Equity
Adjusted return on equity is a non-IFRS ratio. Refer to “Key Performance Indicators and Non-IFRS Measures” section on page 43 of the Company’s MD&A for the year ended
Three Months Ended | ||||||||
($in 000’s except percentages) | 2023 | 2023 (adjusted) | 2022 | 2022 (adjusted) | ||||
Net income as stated | 74,602 | 74,602 | 28,576 | 28,576 | ||||
After-tax impact of adjusting items1 | - | (5,641 | ) | - | 22,450 | |||
Adjusted net income | 74,602 | 68,961 | 28,576 | 51,026 | ||||
Multiplied by number of periods in a year | X 4 | X 4 | X 4 | X 4 | ||||
Divided by average shareholders’ equity for the period | 1,033,259 | 1,033,259 | 830,820 | 830,820 | ||||
Return on equity | 28.9 | % | 26.7 | % | 13.8 | % | 24.6 | % |
1 For explanation of adjusting items, refer to the corresponding “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section.
Year Ended | ||||||||
($in 000’s except percentages) | 2023 | 2023 (adjusted) | 2022 | 2022 (adjusted) | ||||
Net income as stated | 247,898 | 247,898 | 140,161 | 140,161 | ||||
After-tax impact of adjusting items1 | - | (4,723 | ) | - | 52,100 | |||
Adjusted net income | 247,898 | 243,175 | 140,161 | 192,261 | ||||
Divided by average shareholders’ equity for the year | 958,322 | 958,322 | 794,269 | 794,269 | ||||
Return on equity | 25.9 | % | 25.4 | % | 17.6 | % | 24.2 | % |
1 For explanation of adjusting items, refer to the corresponding “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section.
Reported and Adjusted Return on Tangible Common Equity
Reported and adjusted return on tangible common equity are non-IFRS ratios. Refer to “Key Performance Indicators and Non-IFRS Measures” section on page 43 of the Company’s MD&A for the year ended
Three Months Ended | ||||||||
($ in 000’s except percentages) | 2023 | 2023 (adjusted) | 2022 | 2022 (adjusted) | ||||
Net income as stated | 74,602 | 74,602 | 28,576 | 28,576 | ||||
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 acquired intangible assets, net of income tax | 77,009 | 77,009 | 30,983 | 30,983 | ||||
Impact of adjusting items1 | ||||||||
Other operating expenses | ||||||||
Integration costs | - | 131 | - | 122 | ||||
Write off of an intangible asset | - | - | - | 20,460 | ||||
Other (income) loss | - | (1,310 | ) | - | 5,609 | |||
Finance costs | ||||||||
Refinancing costs related to notes payable | - | 9,501 | - | - | ||||
Fair value change on prepayment options related to 2028 Notes | - | (19,035 | ) | - | - | |||
Total pre-tax impact of adjusting items | - | (10,713 | ) | - | 26,191 | |||
Income tax impact of above adjusting items | - | 2,665 | - | (6,148 | ) | |||
After-tax impact of adjusting items | - | (8,048 | ) | - | 20,043 | |||
Adjusted net income | 77,009 | 68,961 | 30,983 | 51,026 | ||||
Multiplied by number of periods in a year | X 4 | X 4 | X 4 | X 4 | ||||
Average shareholders’ equity | 1,033,259 | 1,033,259 | 830,820 | 830,820 | ||||
Average goodwill | (180,923 | ) | (180,923 | ) | (180,923 | ) | (180,923 | ) |
Average acquired intangible assets2 | (97,704 | ) | (97,704 | ) | (110,804 | ) | (110,804 | ) |
Average related deferred tax liabilities | 25,892 | 25,892 | 29,363 | 29,363 | ||||
Divided by average tangible common equity | 780,524 | 780,524 | 568,456 | 568,456 | ||||
Return on tangible common equity | 39.5 | % | 35.3 | % | 21.8 | % | 35.9 | % |
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) | 2023 | 2023 (adjusted) | 2022 | 2022 (adjusted) | ||||
Net income as stated | 247,898 | 247,898 | 140,161 | 140,161 | ||||
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 acquired intangible assets, net of income tax | 257,527 | 257,527 | 149,790 | 149,790 | ||||
Impact of adjusting items1 | ||||||||
Other operating expenses | ||||||||
Contract exit fee | - | 934 | - | - | ||||
Integration costs | - | 608 | - | 1,081 | ||||
Write off of an intangible asset | - | - | - | 20,460 | ||||
Corporate development costs | - | - | - | 2,314 | ||||
Other (income) loss | - | (9,771 | ) | - | 28,659 | |||
Finance costs | ||||||||
Refinancing costs related to notes payable | - | 9,501 | - | - | ||||
Fair value change on prepayment options related to 2028 Notes | - | (19,035 | ) | - | - | |||
Total pre-tax impact of adjusting items | - | (17,763 | ) | - | 52,514 | |||
Income tax impact of above adjusting items | - | 3,411 | - | (10,043 | ) | |||
After-tax impact of adjusting items | - | (14,352 | ) | - | 42,471 | |||
Adjusted net income | 257,527 | 243,175 | 149,790 | 192,261 | ||||
Average shareholders’ equity | 958,322 | 958,322 | 794,269 | 794,269 | ||||
Average goodwill | (180,923 | ) | (180,923 | ) | (180,923 | ) | (180,923 | ) |
Average acquired intangible assets2 | (102,617 | ) | (102,617 | ) | (115,717 | ) | (115,717 | ) |
Average related deferred tax liabilities | 27,194 | 27,194 | 30,665 | 30,665 | ||||
Divided by average tangible common equity | 701,976 | 701,976 | 528,294 | 528,294 | ||||
Return on tangible common equity | 36.7 | % | 34.6 | % | 28.4 | % | 36.4 | % |
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’s 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
($in 000’s) | Three Months Ended | |||
2023 | 2022 | |||
Total company revenue | 338,112 | 273,326 | ||
Less: easyfinancial revenue | (299,465 | ) | (235,886 | ) |
Less: leasing revenue | (26,236 | ) | (26,772 | ) |
easyhome financial revenue | 12,411 | 10,668 | ||
Total Yield on Consumer Loans as a Percentage of Average Gross Consumer Loans Receivable
Total yield on consumer loans as a percentage of average gross consumer loans receivable is a non-IFRS ratio. See description in section “Portfolio Analysis” on page 33 of the Company’s MD&A for the year ended
Three Months Ended | Year Ended | |||||||
($in 000’s except percentages) | 2023 | 2022 | 2023 | 2022 | ||||
338,112 | 273,326 | 1,250,069 | 1,019,336 | |||||
Less: Leasing revenue | (26,236 | ) | (26,772 | ) | (105,925 | ) | (110,053 | ) |
Financial revenue | 311,876 | 246,554 | 1,144,144 | 909,283 | ||||
Multiplied by number of periods in a year | X 4 | X 4 | X 4/4 | X 4/4 | ||||
Divided by average gross consumer loans receivable | 3,577,393 | 2,726,446 | 3,245,686 | 2,409,890 | ||||
Total yield on consumer loans as a percentage of average gross consumer loans receivable (annualized) | 34.9 | % | 36.2 | % | 35.3 | % | 37.7 | % |
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 33 of the Company’s MD&A for the year ended
Three Months Ended | ||||
($ in 000’s) | 2023 | 2022 | ||
Gross loan originations | 704,875 | 632,355 | ||
Loan originations to new customers | 345,339 | 299,458 | ||
Loan originations to existing customers | 359,536 | 332,897 | ||
Less: Proceeds applied to repay existing loans | (191,978 | ) | (177,848 | ) |
Net advance to existing customers | 167,558 | 155,049 | ||
Net principal written | 512,897 | 454,507 | ||
Percentage net advances to new customers | 67.3 | % | 65.9 | % |
Net Debt to Net Capitalization
Net debt to net capitalization is a capital management measure. Refer to “Financial Condition” section on page 55 of the Company’s MD&A for the year ended
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.
2024 GlobeNewswire, Inc., source