goeasy Ltd. Reports Results for the Third Quarter Ended September 30, 2015

MISSISSAUGA, ONTARIO--(Marketwired - Nov. 3, 2015) - goeasy Ltd. (TSX:GSY), ("goeasy" or the "Company"), the leading full service provider of goods and alternative financial services that improve the lives of everyday Canadians, today announced its results for the third quarter ended September 30, 2015.

Q3 2015 Results

Revenue for the third quarter of 2015 increased to a record of $78 million, an increase of 19.0% from $66 million in the third quarter of 2014. Total same store sales growth in the quarter was 18.6%. The growth was driven primarily by the expansion of easyfinancial and the related growth of its consumer loans receivable portfolio which grew by $22.7 million during the third quarter of 2015. The gross consumer loans receivable as at September 30, 2015 was $254 million compared with $166 million as at September 30, 2014, an increase of 53%.

Operating income for the quarter was $12.9 million, up $5.5 million or 74% compared to the third quarter of 2014. Net income for the quarter was $6.3 million, an increase of 80% compared with $3.5 million reported in the third quarter of 2014. Diluted earnings per share for the quarter increased to $0.45 compared to $0.25 for the third quarter of 2014. These income statement metrics represent record quarterly performance for goeasy.

"We are pleased with the record financial performance achieved in the quarter," said David Ingram, goeasy's President and Chief Executive Officer. "The previous investments that we made in technology, infrastructure, risk management, staff and brand positioning are now delivering the expected results. In addition to the improving financial performance, we completed several key strategic activities during the third quarter of 2015. We are confident that these will drive additional benefits in future quarters as we continue to grow and execute against our stated strategy."

The strategic activities completed during the third quarter of 2015 were as follows:

• easyfinancial's delivery channels were enhanced through the partnership with Leon's Furniture Ltd. ("Leons") to provide customers of Leon's with a new point-of-sale financing alternative utilizing an internally developed tablet technology solution.
• The Company's ability to continue expanding was enhanced by increasing its total credit facilities by $100 million while reducing the interest rate. This will facilitate the growth of its gross consumer loans receivable portfolio through to 2017.
• The leasing operations were made more efficient through the acquisition of 14 leasing stores from Rent-A-Center, Inc.
• The Company's rebranding was completed with the change in the corporate name from easyhome Ltd. to goeasy Ltd., reflecting the evolution and growth in the business as it moves from a name that was aligned with the legacy leasing business to a corporate name that encompasses all of the Company's business units and its ambition to add new goeasy brands as it executes towards its strategic goals.

Other highlights for the third quarter of 2015 include:

easyfinancial

• Revenue for easyfinancial increased by 47% for the third quarter of 2015 compared to the third quarter of 2014.
• Gross loan originations increased by 41% from $58 million in the third quarter of 2014 to $82 million in the current quarter.
• Operating margin of 32.4% for the third quarter of 2015 was up from 29.6% reported for the same period in 2014.

easyhome Leasing

• Revenue for easyhome Leasing was relatively unchanged from the third quarter of 2014.
• Same store revenue growth was 8.0%.
• The operating margin of easyhome Leasing for the third quarter of 2015 was 15.6%, up from the 11.2% reported for the same period in 2014.

Overall

• Operating margin was 16.5% for the quarter, up from 11.3% in the third quarter of 2014.

Nine Months Results

For the first nine months of the year, goeasy recorded revenues of $221 million, up 17.1% compared with $189 million in the first nine months of 2014. Operating income for the period was $33 million compared with $23 million in the first nine months of 2014, an increase of 43% while net income increased by $3.5 million or 28%. Diluted earnings per share increased from $0.91 to $1.15, an increase of 26%.

Outlook

The Company's 2015 targets remain unchanged from the targets detailed in its earnings release for the second quarter of 2015.

The Company has established the following targets for 2016:

• open 10 - 20 new easyfinancial locations
• easyfinancial gross consumer loans receivable portfolio growing to $360 - $390 million by year end
• easyfinancial operating margins for 2016 of 32 - 35%.

Based on these assumptions, the Company expects total revenue growth of 16 - 20% for 2016. The achievement of these targets by the Company, however, is predicated on a number of factors, including the pace of expansion of easyfinancial.

In addition to specific targets for the 2015 and 2016 fiscal years, the Company has established a number of three year targets that it is working to achieve by the end of 2018.

• 220 - 240 easyfinancial locations operating by the end of 2018
• easyfinancial gross consumer loans receivable portfolio growing to $500 million
• easyfinancial margins of 35%

"The progress made on all fronts during the last few years has positioned the Company for significant EPS expansion and unencumbered loan book growth for the next few years," Mr. Ingram commented. "Our plans for next year are focused on completing existing IT projects, accelerating new customer originations, particularly through the indirect channel, and achieving efficiency and effectiveness as the business continues to expand."

The Board of Directors has approved a quarterly dividend payment of $0.10 per share payable on January 8, 2016 to the holders of common shares of record as at the close of business on December 24, 2015.

Forward-Looking Statements

This new 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, those with respect to the estimated number of new locations to be opened, targets for growth of the consumer loans receivable portfolio, annual revenue growth targets, strategic initiatives, new product offerings and new delivery channels, anticipated cost savings, planned capital expenditures, anticipated capital requirements, liquidity of the Company, plans and references to future operations and results and critical accounting estimates. 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 'expects', 'anticipates', 'intends', 'plans', 'believes', 'budgeted', 'estimates', 'forecasts', 'targets' 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, as well as those factors referred to the Company's December 31, 2014 Management Discussion and Analysis in the section entitled "Risk Factors". 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, due to, but not limited to important factors such as the Company'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, secure new franchised locations, purchase 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, 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.

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. 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

As at September 30, 2015, the Company operated 186 easyhome Leasing stores (including 25 franchises and 4 consolidated franchise locations) and 201 easyfinancial locations.

goeasy Ltd. is the 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, easyhome Leasing and easyfinancial. easyhome Leasing 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. easyfinancial is the leading provider of alternative financial services, offering consumer loans between $500-$10,000, and 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. 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 180 easyhome Leasing and 200 easyfinancial locations across Canada and through its online and mobile eCommerce enabled platforms.

goeasy Ltd. is listed on the TSX under the symbol 'GSY'. For more information, visit www.goeasy.com.

goeasy Ltd.

INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(unaudited)

(expressed in thousands of Canadian dollars)

	As At		As At
	September 30,		December 31,
	2015		2014
ASSETS
Cash	22,261		1,165
Amounts receivable	14,321		16,508
Prepaid expenses	3,002		1,971
Income taxes receivable	1,260		-
Consumer loans receivable	237,907		180,693
Lease assets	60,523		64,526
Property and equipment	19,437		16,915
Deferred tax assets	5,603		6,725
Intangible assets	13,884		11,006
Goodwill	21,310		19,963
TOTAL ASSETS	399,508		319,472
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Revolving operating facility	-		1,756
Accounts payable and accrued liabilities	25,490		32,837
Income taxes payable	-		3,042
Dividends payable	1,339		1,133
Deferred lease inducements	2,122		2,603
Unearned revenue	3,625		3,978
Provisions	584		314
Term loan	197,515		119,841
TOTAL LIABILITIES	230,675		165,504
Shareholders' equity
Share capital	81,481		80,364
Contributed surplus	8,760		6,458
Accumulated other comprehensive income	1,113		694
Retained earnings	77,479		66,452
TOTAL SHAREHOLDERS' EQUITY	168,833		153,968
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	399,508		319,472

goeasy Ltd.

INTERIM 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,
	2015		2014		2015		2014
REVENUE
Lease revenue	37,256		37,041		110,129		113,623
Interest income	26,481		17,107		71,280		44,622
Other	14,246		11,380		39,989		30,863
	77,983		65,528		221,398		189,108
EXPENSES BEFORE DEPRECIATION AND AMORTIZATION
Salaries and benefits	21,328		19,107		63,561		56,849
Stock based compensation	1,009		1,182		3,604		4,450
Advertising and promotion	2,754		3,174		8,069		6,510
Bad debts	10,856		7,252		28,460		17,507
Occupancy	7,995		6,994		23,584		20,903
Other	6,671		6,080		19,034		17,673
	50,613		43,789		146,312		123,892
DEPRECIATION AND AMORTIZATION
Depreciation of lease assets	12,248		12,564		35,506		36,925
Depreciation of property and equipment	1,326		1,215		3,965		3,560
Amortization of intangible assets	880		526		2,464		1,512
Impairment, net	44		26		90		168
	14,498		14,331		42,025		42,165
Total operating expenses	65,111		58,120		188,337		166,057
Operating income	12,872		7,408		33,061		23,051
Finance costs	3,978		2,535		10,729		5,893
Income before income taxes	8,894		4,873		22,332		17,158
Income tax expense (recovery)
Current	1,960		1,708		4,998		8,621
Deferred	678		(305	)	1,138		(4,099	)
	2,638		1,403		6,136		4,522
Net income	6,256		3,470		16,196		12,636
Basic earnings per share	0.46		0.26		1.19		0.94
Diluted earnings per share	0.45		0.25		1.15		0.91