easyhome Ltd. Reports Results for the Third Quarter Ended September 30, 2013

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Record Revenues Result in a 41% Increase in Diluted Earnings Per Share Company Announces Plans to Significantly Expand easyfinancial

MISSISSAUGA, ONTARIO - (Marketwired - Nov. 6, 2013) - easyhome Ltd. (TSX:EH) ("easyhome" or the "Company"), the Canadian leader in providing goods and financial services to the cash and credit constrained consumer, today announced its results for the third quarter ended September 30, 2013.

Revenue for the third quarter of 2013 increased to $54.9 million, an increase of 11.3% from $49.3 million in the third quarter of 2012. The growth was driven primarily by the expansion of easyfinancial and the related growth of its consumer loans receivable portfolio. Operating income for the quarter was $6.9 million, up $2.7 million or 62% compared to the third quarter of 2012. Net income for the quarter was $3.8 million, an increase of 45% compared with $2.6 million reported in the third quarter of 2012. Diluted earnings per share for the quarter increased by 41% to $0.31 compared to $0.22 for the third quarter of 2012.

"We are delighted to report continued strong growth in revenue, operating income and net income," said David Ingram, easyhome's President and Chief Executive Officer. "Our leasing business delivered a 14.3% improvement in its operating income while easyfinancial's operating income increased 50%."

"The ever increasing demand for easyfinancial's loan products has given us the confidence to embark on a more aggressive growth plan for easyfinancial," continued Mr. Ingram. "We are building on a foundation of strength while enjoying record performance during 2013. We have in place the capital, the systems and analytical tools, the personnel and the required strategic framework to significantly expand our easyfinancial operations and realize easyfinancial's vision of becoming Canada's leading alternative provider of financial services to the cash and credit constrained consumer."

Additionally, the Company announced a $20.0 million equity financing that will close on November 12, as well as a debt refinancing earlier in the year and is well capitalized to deliver its growth plans for easyfinancial.

Announcing Three Year Growth Plan (2014 - 2016)

easyhome plans to strategically invest in growing the number of locations for stand-alone branches of easyfinancial to approximately 225 over the next three years, up from 112 at September 30, 2013. This growth of the retail footprint and the introduction of new delivery channels will help grow easyfinancial's consumer loans receivable portfolio to a target of $250 million by the end of 2016. For 2016, the Company expects easyfinancial to have an operating margin of 32% growing to approximately 35% over time as growth levels moderate.

"The Board is pleased to be moving forward with the strategic growth strategy as the Company is in a position of unprecedented strength," said Donald K. Johnson, Chairman of the Board. "easyhome has all the elements in place to ensure the projected growth will continue to create value for shareholders."
Highlights for the third quarter of 2013 include:

easyhome Leasing

Same store revenue growth excluding easyfinancial Services of 7.7%, driven mainly by the migration of the lease portfolio of closed stores to nearby locations and improved retail execution resulting from the restructuring that occurred in the prior year.
The operating margin of the leasing business for the third quarter of 2013 was 16.6%, up from 14.6% reported in the third quarter of 2012.

easyfinancial Services

The consumer loans receivable portfolio closed at $92.8 million, compared with $59.6 million in the same period of 2012, an increase of 56%.
Operating margin of 32.5% for the third quarter of 2013 was down slightly from 33.8% reported for the same period in 2012.
During the quarter, easyfinancial opened 10 new stand-alone locations. The Company plans to continue to open new locations and increase its marketing investment to support growth, which is expected to have a downward impact on operating margins in the fourth quarter and continuing until scale is achieved.

Year to date, revenue reached $161.0 million, up 8.8% from $148.0 million in 2012. Net income for the first nine months of 2013 was $9.8 million, up 35% from $7.3 million a year earlier. Diluted earnings per share rose 32.7% to $0.81 in the first three quarters of 2013 from $0.61 in the same period of 2012.

2014 Targets

The Company has established the following targets for 2014:

Open 30 - 35 new easyfinancial locations with virtually all of these being stand-alone locations.
easyfinancial gross consumer loans receivable portfolio growing to $145-$155 million.
easyfinancial margins of 27 - 29% will remain consistent with 2013 due to the impacts of additional marketing and advertising spend, continued investments in the development and implementation of new technologies and the earnings drag from newly opened locations. The Company estimates that this investment in the growth of easyfinancial will be approximately $0.11 per share in 2014.
easyhome leasing expects to open 2 new Be-A-Contender franchise stores that are consolidated for financial reporting purposes and 3 new franchise stores.

Based on these assumptions, the Company is targeting total revenue growth of 10 - 12%. The achievement of these targets by the Company, however, is predicated on a number of factors, including the pace of expansion of easyfinancial.

The Board of Directors has approved a quarterly dividend payment of $0.085 per share payable on January 10, 2014 to the holders of common shares of record as at the close of business on December 27, 2013.

About easyhome

As at September 30, 2013, easyhome Ltd. operated 235 easyhome leasing stores (including 8 consolidated franchise locations and 52 other franchise locations) and 112 easyfinancial locations.

easyhome Ltd. is the Canadian leader in providing goods and financial services to the cash and credit constrained consumer. easyhome Ltd. serves its customers through two key operating divisions, easyhome Leasing and easyfinancial. easyhome Leasing is Canada's largest merchandise leasing Company, offering top quality, brand-name household furnishings, appliances and home electronic products to consumers under weekly or monthly leasing agreements through both corporate and franchise stores. easyfinancial is a leading provider of consumer loans as an alternative to traditional banks and payday lenders. easyhome Ltd. is listed on the TSX under the symbol 'EH'. For more information, visit www.easyhome.ca.

The above analysis refers to certain financial measures, including same store revenue growth and gross consumer loans receivable which are not determined in accordance with International Financial Reporting Standards ("IFRS"). These measures do not have standardized meanings and may not be comparable to similar measures presented by other companies. These measures are defined in our Management's Discussion and Analysis for the period which is available on SEDAR or on the Company's website at www.easyhome.ca or can be determined by reference to our financial statements. We discuss these measures as we believe that they facilitate the understanding of the results of our operations and financial position.

Forward-Looking Statements

This news release includes forward-looking statements about easyhome Ltd., including its business operations, strategy and expected financial performance and condition. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as 'expects', 'anticipates', 'intends', 'plans', 'believes' or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future financial performance (including revenue, earnings or growth rates), ongoing business strategies or prospects about future events is also a forward-looking statement. 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 our operations, economic factors and the industry generally. They are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied by forward-looking statements made by us, due to, but not limited to important factors such as our ability to enter into new lease and/or financing agreements, collect on existing lease and/or financing agreements, open new locations on favourable terms, secure new franchised locations, purchase products which appeal to our customers at a competitive rate, cope with changes in legislation, react to uncertainties related to regulatory actions, raise capital under favourable terms, manage the impact of litigation (including shareholder litigation), control costs at all levels of the organization and maintain and enhance our system of internal controls. We caution that the foregoing list is not exhaustive. The reader is cautioned to consider these and other factors carefully and not place undue reliance on forward-looking statements, which may not be appropriate for other purposes. We are under no obligation (and expressly disclaim any such obligation) to update or alter the forward-looking statements whether as a result of new information, future events or otherwise, unless otherwise required by law.

easyhome Ltd.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(unaudited)
(expressed in thousands of Canadian dollars)

	As at	As at
	September 30,	December 31,
	2013	2012

ASSETS
Current assets
Cash	1,803	4,631
Amounts receivable	5,689	4,536
Consumer loans receivable	48,667	34,425
Prepaid expenses	2,043	964
Total current assets	58,202	44,556
Amounts receivable	1,342	1,000
Consumer loans receivable	38,389	32,159
Lease assets	62,149	68,075
Property and equipment	15,021	13,729
Deferred tax assets	4,466	4,232
Intangible assets	8,106	6,213
Goodwill	19,963	19,963
TOTAL ASSETS	207,638	189,927

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Bank revolving credit facility	28,166	21,281
Accounts payable and accrued liabilities	20,269	31,696
Income taxes payable	6,924	4,216
Dividends payable	1,015	1,012
Deferred lease inducements	635	564
Unearned revenue	3,580	3,922
Provisions	107	379
Total current liabilities	60,696	63,070
Accounts payable and accrued liabilities	1,906	1,459
Deferred lease inducements	1,757	1,898
Term loan	30,481	18,330
Provisions	-	157
Total liabilities	94,840	84,914

Shareholders' equity
Share capital	60,898	60,885
Contributed surplus	3,791	3,035
Accumulated other comprehensive income (loss)	82	(137	)
Retained earnings	48,027	41,230
Total shareholders' equity	112,798	105,013
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	207,638	189,927

easyhome Ltd.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(expressed in thousands of Canadian dollars except earnings per share)

		Three months ended				Nine months ended
		September 30,		September 30,		September 30,		September 30,
		2013		2012		2013		2012

REVENUE
Lease revenue		37,913		38,014		115,559		116,925
Interest income		9,844		6,503		26,406		17,533
Other		7,109		4,772		19,053		13,521
		54,866		49,289		161,018		147,979

EXPENSES BEFORE DEPRECIATION AND AMORTIZATION
Salaries and benefits		16,152		15,874		48,968		47,405
Stock based compensation		895		504		2,454		998
Advertising and promotion		1,655		1,702		5,538		5,858
Bad debts		3,974		2,434		10,351		6,760
Occupancy		6,495		6,320		19,558		19,367
Distribution and travel		1,720		1,821		5,185		5,535
Other		3,659		3,376		11,375		10,055
Restructuring and other items		-		-		-		436
		34,550		32,031		103,429		96,414

DEPRECIATION AND AMORTIZATION
Depreciation of lease assets		11,968		11,847		35,920		36,045
Depreciation of property and equipment		1,096		1,007		3,314		2,978
Amortization of intangible assets		318		119		925		348
Impairment, net		(14	)	(7	)	(26	)	275
		13,368		12,966		40,133		39,646

Total operating expenses		47,918		44,997		143,562		136,060

Operating income		6,948		4,292		17,456		11,919

Finance costs		1,686		481		4,224		1,428

Income before income taxes		5,262		3,811		13,232		10,491

Income tax expense (recovery)
	Current	1,217		1,394		3,619		5,845
	Deferred	228		(221	)	(233	)	(2,645	)
		1,445		1,173		3,386		3,200

Net income		3,817		2,638		9,846		7,291

Basic earnings per share		0.32		0.22		0.82		0.61
Diluted earnings per share		0.31		0.22		0.81		0.61