easyhome Ltd.

easyhome Ltd.

November 01, 2006 18:30 ET

easyhome Ltd. Restatement of Second Quarter 2006 Results

EDMONTON, ALBERTA--(CCNMatthews - Nov. 1, 2006) - easyhome Ltd. (TSX:EH), Canada's leading merchandise leasing company, today announced the restatement of its second quarter results for the period ended June 30, 2006.

During its review of its third quarter financial results, the Company determined that it had not accurately recorded the non-cash impact of changes in the Company's future tax assets and corresponding impact on the tax provision related to the Canadian Federal income tax rate reductions substantially enacted in late June of 2006 on its second quarter financial results. The impact of this restatement is as follows:

Three months ended Six months ended
(in 000's except June 30, 2006 June 30, 2006
earnings per share) $ $ $ $
Reported Restated Reported Restated

Income before income taxes 2,960 2,960 6,798 6,798

Income taxes
Current 1,572 1,572 2,957 2,957
Future (425) (17) (324) 84
1,147 1,555 2,633 3,041

Net income 1,813 1,405 4,165 3,757

Earnings per share
Basic .17 .14 .41 .37
Fully diluted .17 .14 .40 .36


Future tax assets (as at June 30, 2006) 7,212 6,804 7,212 6,804


The Company believes that it's effective tax rate in future periods will range from approximately 38% - 39%.

easyhome Ltd., with 186 locations, is Canada's largest merchandise leasing company and the fourth largest in North America, offering top quality, brand-name household furnishings, appliances and home electronic products to consumers under weekly or monthly leasing agreements. easyhome Ltd. is listed on the TSX under the symbol 'EH'.

Certain information included in this news release may constitute forward-looking statements. Forward-looking statements are based on current expectations and entail various risks and uncertainties. These risks and uncertainties could cause or contribute to actual results that are materially different from those expressed or implied. The Company disclaims any obligation or intention to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Contact Information

  • easyhome Ltd.
    David Ingram
    President & Chief Executive Officer
    (905) 272-2788
    easyhome Ltd.
    Chris Fregren
    Vice President and Chief Financial Officer
    (905) 272-2788
    easyhome Ltd.
    Donald K. Johnson
    Chairman of the Board
    (416) 359-4119