easyhome Ltd.
TSX : EH

easyhome Ltd.

February 18, 2011 09:17 ET

easyhome Ltd. Announces Restatement of January 1, 2009 Opening Retained Earnings; No Significant Impact on 2010 or 2009 Earnings

TORONTO, ONTARIO--(Marketwire - Feb. 18, 2011) - easyhome Ltd. (TSX:EH) ("easyhome" or the "Company") announced today that as a result of a review carried out in preparation for the pending conversion to International Financial Reporting Standards ("IFRS"), it has determined that the Company's unearned revenue balance has been historically understated. Accordingly, with the concurrence of the Company's Board, Audit Committee and external auditors, the Company's opening balance sheet as at January 1, 2009 will be restated, including a reduction to opening retained earnings of approximately $1.9 million (unaudited). 

The restatement is expected to reduce 2010 earnings per share by $0.01 and improve the previously reported 2009 earnings per share by $0.02. 

The restatement (reduction) in 2009 opening retained earnings is required as a result of the cumulative effect since 2000 of a historical understatement of the calculation for unearned leasing revenue, which resulted in the amount of revenue received but not yet earned being understated by $1.9 million (unaudited), net of corresponding adjustments for income taxes.

The 2009 opening retained earnings will be decreased from $34.7 million to $32.8 million and the retained earnings as at September 30, 2010 will be decreased from $39.2 million to $37.3 million. There is no requirement that the Company reissue any prior period financial statements and the impacts of the restatement on the January 1, 2009 opening balance sheet and on the 2009 financial statements will be reflected in the 2010 financial statements, which include comparative figures for the year ended December 31, 2009.

About easyhome

As at January 31, 2011, easyhome Ltd. had 254 stores, including 36 franchised/licensed locations. The Company also operated 63 easyfinancial kiosks within existing easyhome stores. easyhome Ltd. is Canada's largest merchandise leasing company and the third largest in North America, offering top quality, brand-name household furnishings, appliances and home electronic products to consumers under weekly or monthly leasing agreements through both corporate and franchise stores. In addition, the Company offers a variety of financial services, including loans, prepaid credit cards and cheque cashing through its easyfinancial services business. easyhome Ltd. is listed on the TSX under the symbol 'EH'.

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 action, 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.

Contact Information

  • easyhome Ltd.
    David Ingram
    President & Chief Executive Officer
    (905) 272-2788
    or
    easyhome Ltd.
    Steve Goertz
    Sr. VP & CFO
    (905) 272-2788