Corporate Profile

About goeasy Ltd.

goeasy Ltd. is a leading full service provider of goods and alternative financial services that improve the lives of everyday Canadians. Today, goeasy Ltd. serves its customers through two key operating divisions, easyfinancial and easyhome. easyfinancial is a non-prime consumer lender that bridges the gap between traditional financial institutions and costly payday lenders. It is supported by a strong central credit adjudication process and industry leading risk analytics. easyfinancial also operates an indirect lending channel, offering loan products to consumers at the point-of-sale of third party merchants. easyhome is Canada's largest lease-to-own company, offering brand-name household furniture, appliances and electronics to consumers under weekly or monthly leasing agreements through both corporate and franchise stores. Both operating divisions of goeasy Ltd. offer the highest level of customer service and enable customers to transact through a national store and branch network of over 200 easyfinancial and 175 easyhome locations across Canada and through its online and mobile eCommerce enabled platforms. goeasy Ltd. is listed on the TSX under the symbol ‘GSY’.

Operation since 1990 13.3 million shares outstanding
Based in Mississauga, Ontario Market capitalization ~ $400 million
1,700 employees Quarterly dividend of $0.18
Listed on the Toronto Stock Exchange (TSX: GSY) Analyst coverage provided by 5 firms



Overview of Business Segments

easyfinancial Services

easyfinancial Services is the Company’s financial services arm, operating in the non-prime consumer lending marketplace by bridging the gap between traditional financial institutions and costly payday lenders. easyfinancial provides unsecured and secured personal loans between $500 to $25,000, repayable in regular installments over 9 to 120 months. easyfinancial is a lending alternative and began as a complementary business to easyhome.

Description Financial Snapshot (Year Ended December 31, 2016)
  • goeasy’s financial services arm that provides unsecured personal loans between $500 and $15,000, and secured personal loans between $15,000-$25,000 for terms between 9 and 120 months
  • Business model utilizes multiple channels (200+ retail branch network, online and merchant partners) for maximum loan originations
  • Loan decisions made centrally using credit risk models developed by analyzing over $1.0 billion of originations data
Revenue $204.1M
Operating Income $74.8M
Store Count 208 (kiosks, stand-alone locations and national loan office)
Gross Consumer Loans $370.5M

easyhome

easyhome is Canada's largest lease-to-own company, offering brand-name household furniture, appliances and electronics to consumers under weekly or monthly leasing agreements through both corporate and franchise stores.

Description Financial Snapshot (Year Ended December 31, 2016)
  • Oldest segment of goeasy’s business
  • Allows consumers to lease merchandise, such as household furnishings, appliances, and electronic products, for weekly or monthly rental payments
  • Option to purchase without an initial down payment or credit check, can cancel lease at any time without penalty
  • Consumers are required to sign lease agreements for a pre-determined term
  • Annual interest rate of 29.9% is fixed
Revenue $143.4M
Operating Income $21.5M
Lease Assets $55.3M
Store Count 176

easyhome’s programs appeal to a wide variety of consumers who are looking for alternatives to traditional retailers and who are attracted to a leasing transaction that does not involve a credit check, does not require an initial down payment, includes delivery and set up and offers them the flexibility to terminate the lease at any time. These consumers may not be able to purchase merchandise due to a lack of credit or insufficient cash resources, may have a short-term or otherwise temporary need for the merchandise, or may simply want to use the merchandise, with no long-term obligation, before making a purchase decision.

Customers who wish to lease merchandise with an option to purchase from easyhome are required to enter into easyhome’s standard form merchandise leasing agreement. This lease agreement provides that the customer will lease merchandise for a set term and make payments on a weekly or monthly basis. Generally, customers are required to make an initial up-front lease payment and thereafter the periodic payments are collected in advance for each payment period. If the customer makes all of the periodic payments throughout the lease term, he or she will obtain ownership of the merchandise at the end of the term. In addition, at specified times during the term of the lease, customers can exercise an option to purchase the leased merchandise at a predetermined price. easyhome maintains ownership of its merchandise until this purchase option is exercised. Ultimately, easyhome’s customers have the flexibility to return the merchandise at any time without any further obligations.

easyhome operates through both corporately owned stores located across Canada and through a network of franchised locations. Additionally, since 2013, the Company operates an e-commerce platform that allows customers to enter into merchandise leasing transactions through on-line channels.