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goeasy Ltd. Reports Record Results for the Second Quarter

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Loan Originations of $827 million, up 24% from $667 million
Loan Growth of $286 million, up 37% from $210 million
Loan Portfolio of $4.14 billion, up 29% from $3.20 billion
Revenue of $378 million, up 25% from $303 million
Diluted EPS of $3.76; Adjusted Diluted EPS1 of $4.10, up 25% from $3.28

MISSISSAUGA, ON, Aug. 8, 2024 /CNW/ – goeasy Ltd. (TSX: GSY), (“goeasy” or the “Company”), one of Canada’s leading consumer lenders focused on delivering a full suite of financial services to Canadians with non-prime credit, today reported results for the second quarter ended June 30, 2024.

Second Quarter Results

During the quarter, the Company generated a record $827 million in loan originations, up 24% compared to $667 million produced in the second quarter of 2023. The increase in lending was driven by a record volume of applications for credit, which were up 34% over the prior year. The Company experienced strong performance across several product and acquisition channels, including unsecured lending, home equity lending, point-of-sale and automotive financing.

The increase in loan originations led to record growth in the loan portfolio of $286 million, which was up 37% from $210 million of loan book growth in the second quarter of 2023. At quarter end, the consumer loan portfolio was $4.14 billion, up 29% from $3.20 billion in the second quarter of 2023. The growth in consumer loans led to an increase in revenue, which was a record $378 million in the quarter, up 25% from $303 million in the second quarter of last year. 

During the quarter, the Company continued to experience stable credit and payment performance. The annualized net charge off rate was 9.3%, in line with the Company’s target range of between 8% and 10%. The Company’s allowance for future credit losses decreased slightly to 7.31%, compared to 7.38% in the first quarter.

Operating income for the second quarter of 2024 was a record $147 million, up 33% from $111 million in the second quarter of 2023. Operating margin for the first quarter was 39.0%, up from 36.5% in the same period last year. After adjusting for unusual and non-recurring items, the Company reported record adjusted operating income2 of $153 million, an increase of 34% compared to $114 million in the second quarter of 2023. Adjusted operating margin1 for the second quarter was 40.5%, up from 37.7% in the same period in 2023. The efficiency ratio1 for the second quarter of 2024 was a record 26.9%, an improvement of 430 bps from 31.2% in the second quarter of 2023, reflecting an increase in operating leverage.

Net income in the second quarter was $65.4 million, up 18% from $55.6 million in the same period of 2023, which resulted in diluted earnings per share of $3.76, up 15% from the $3.26 reported in the second quarter of 2023. After adjustments, adjusted net income2 was a record $71.3 million, up 27% from $56.0 million in the second quarter of 2023. Adjusted diluted earnings per share1 was a record $4.10, up 25% from $3.28 in the second quarter of 2023. Return on equity during the quarter was 23.3%, compared to 24.0% in the second quarter of 2023. Adjusted return on equity1 was 25.4% in the quarter, an increase of 120 bps from 24.2% in the same period of 2023.

“During the quarter we were proud to serve a record number of new customers at over 48,000, while producing record loan growth of $286 million, highlighting the critical role we play in providing everyday Canadians with access to credit,” said Jason Mullins, goeasy’s President and Chief Executive Officer, “With the accelerated growth experienced in the first half of the year, we have revised our three year forecast, including increasing our loan growth, revenues and operating margins,” Mr. Mullins continued, “We were also pleased to secure an additional $450 million of funding in the quarter, strengthening our balance sheet and lifting our funding capacity to over $1.6 billion.”

Other Key Second Quarter Highlights

easyfinancial

Record revenue of $340 million, up 28%44% of the loan portfolio secured, up from 41%Record volume of applications for credit, up 34%Record new customer volume at 48,200, up 15%71% of net loan advances1 in the quarter were issued to new customers, consistent with 71%Record volume of originations in automotive financing, up 79%Average loan book per branch3 improved to a record $6.2 million, an increase of 19%Weighted average interest rate3 on consumer loans of 29.5%, down slightly from 30.1%Record operating income of $165 million, up 31%

easyhome

Revenue of $38.3 million, consistent with $38.2 millionConsumer loan portfolio within easyhome stores increased to $109.9 million, up 14%Financial revenue2 from consumer lending increased to $12.9 million, up 11%Record operating income of $11.9 million, up 29%

Overall

92nd consecutive quarter of positive net income2024 marks the 20th consecutive year of paying dividends and the 10th consecutive year of a dividend increase57th consecutive quarter of same store revenue growthTotal customers served over 1.4 millionAcquired and organically originated over $14.3 billion in loansAdjusted return on equity1 of 25.4%, up from 24.2%Fully drawn weighted average cost of borrowing at 6.8%, up from 5.9%Net debt to net capitalization4 of 73% on June 30, 2024, in line with the Company’s target leverage profile

Six Months Results

For the first six months of 2024, the Company funded $1.51 billion in loan originations, up 18% from $1.28 billion in 2023. The consumer loan receivable portfolio finished at $4.14 billion, up 29% from $3.20 billion as of June 30, 2023.

For the first six months of 2024, the Company produced record revenues of $735 million, up 25% compared to $590 million in the same period of 2023. Operating income for the period was a record $285 million compared with $213 million in the first six months of 2023, an increase of $72 million or 34%. Adjusted operating income2 for the first six months of 2024 was a record $297 million, 35% higher compared to $221 million in the same period of 2023. Efficiency ratio1 for the first six months of 2024 was 27.1%, an improvement of 500 bps from 32.1% in the same period of 2023.

Net income for the first six months of 2024 was $124 million and diluted earnings per share was $7.17, compared with $107 million or $6.27 per share. Adjusted net income2 for the first six months of 2024 was $138 million and adjusted diluted earnings per share1 was $7.94 compared with $109 million or $6.39 per share, increases of 26% and 24%, respectively. Reported return on equity was 22.6%, while adjusted return on equity1 was 25.0%, up from 24.0% in the same period of 2023.

Balance Sheet and Liquidity

Total assets were $4.63 billion as of June 30, 2024, an increase of 26% from $3.68 billion as of June 30, 2023, primarily driven by growth in the consumer loan portfolio.

Subsequent to quarter-end, the Company implemented several enhancements to its balance sheet, including increasing its existing senior secured revolving credit facility (the “Credit Facility”) by $180 million to $550 million and issuing US$200 million aggregate principal amount of senior unsecured notes.

The amendment to the Credit Facility incorporates key modifications including improved effective advance rates and less restrictive covenants and extends the maturity to July 18, 2027. The amended Credit Facility is underwritten by Bank of Montreal, Royal Bank of Canada, Wells Fargo Bank, CIBC, National Bank of Canada, Toronto-Dominion Bank and three new lenders including Desjardins, Bank of Nova Scotia and Raymond James. The facility continues to bear interest on advances payable at either the lenders prime rate plus 75 bps or the rate of Adjusted 1-Month Term Canadian Overnight Repo Rate Average (“Adjusted CORRA”) plus 225 bps. Based on the current Adjusted CORRA rate of 4.79% as of August 2, 2024, the interest rate on the principal amount drawn would be 7.04%. The Company can also utilize an accordion feature to increase the size of the facility by up to an additional $150 million.

In July 2024, the Company issued US$200 million aggregate principal amount of senior unsecured notes due 2029 (the “New Notes”). The New Notes were issued at a price of US$1,018.75 per US$1,000 principal amount, plus accrued interest from July 1, 2024. The New Notes have substantially identical terms (other than issuance price, date of issuance and the date from which interest initially accrues) as, and are treated as a single series with, the Company’s 7.625% unsecured notes due 2029 issued on February 23, 2024 (together with the New Notes, the “Notes”). An aggregate of US$600 million principal amount of Notes is outstanding following closing of the offering. In connection with the offering, the Company entered into a currency swap agreement (the “Currency Swap”) to reduce the Canadian dollar equivalent cost of borrowing on the New Notes to 6.38% per annum. The Company used the net proceeds from the sale of the New Notes for general corporate purposes, including the repayment of indebtedness.

During the quarter, the Company recognized an unrealized net investment loss of $2.7 million, mainly due to fair value changes in the Company’s investments.

Free cash flow from operations before net growth in gross consumer loans receivable2 in the quarter was $93 million compared to $76 million in the second quarter of 2023. Based on the cash on hand at the end of the quarter and the borrowing capacity under the Company’s existing revolving credit facilities, including the aforementioned balance sheet enhancements implemented following the quarter, the Company has approximately $1.6 billion in total funding capacity as of August 2, 2024 and a net debt to total capitalization ratio of 73%, in line with the Company’s desired level of financial leverage. The Company remains confident that the capacity available under its existing funding facilities, and its ability to raise additional debt financing, is sufficient to fund its organic growth forecast.  

At quarter-end, the Company’s weighted average cost of borrowing was 6.9%, and the fully drawn weighted average cost of borrowing was 6.8%. The Company estimates that it could currently grow the consumer loan portfolio by approximately $250 million per year solely from internal cash flows, without utilizing external debt. The Company also estimates that once its existing and available sources of debt are fully utilized, it could continue to grow the loan portfolio by approximately $450 million per year solely from internal cash flows.

Revised & Increased Forecast

On February 13, 2024, the Company provided a 3-year forecast for the years 2024 through 2026. The Company has since experienced a more accelerated rate of growth in its consumer loans receivable portfolio and consequently, has revised its forecast for the years 2024 through 2026 to reflect the most recent outlook. Additionally, the revised forecast reflects an effective date of January 1, 2025, for the previously announced new legislation to reduce the maximum allowable rate of interest, which the Company had previously assumed would be implemented by the middle of 2024. Lastly, the Company continues to employ the use of probability weighted third party economic forecasts to establish its economic outlook and based on those forecasts, the Company continues to assume that Canada will experience a mild to moderate recession in 2024 and into 2025.

The Company continues to pursue a long-term strategy that includes expanding its product range, developing its channels of distribution, and leveraging risk-based pricing to reduce the cost of borrowing for its consumers and extend the life of its customer relationships. As such, the total yield earned on its consumer loan portfolio and net charge off rates will gradually decline, while operating margins expand. The forecast outlined below is based on the Company’s expected domestic organic growth plan and does not include the impact of any future mergers or acquisitions, or the associated gains or losses related to its investments.

Forecast for
2024

Forecast for
2025

Forecast for
2026

Gross consumer loans receivable at year end

$4.55 – $4.65
billion

$5.30 – $5.60
billion

$6.00 – $6.40
billion

Total Company revenue

$1.50 – $1.60
billion

$1.60 – $1.80
billion

$1.75 – $1.95
billion

Total yield on consumer loans (including
     ancillary products)1

33.0% – 35.0%

31.25% – 33.25%

29.5% – 31.5%

Net charge offs as a percentage of average
     gross consumer loans receivable

8.0% – 10.0%

7.75% – 9.75%

7.5% – 9.5%

Total Company operating margin

39%+

41%+

42%+

Return on equity

21%+

21%+

21%+

Dividend

The Board of Directors has approved a quarterly dividend of $1.17 per share payable on October 11, 2024 to the holders of common shares of record as at the close of business on September 27, 2024.

Forward-Looking Statements

All figures reported above with respect to outlook are targets established by the Company and are subject to change as plans and business conditions vary. Accordingly, investors are cautioned not to place undue reliance on the foregoing guidance. Actual results may differ materially.

This press 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, statements with respect to forecasts for growth of the consumer loans receivable, annual revenue growth forecasts, strategic initiatives, new product offerings and new delivery channels, anticipated cost savings, planned capital expenditures, anticipated capital requirements and the Company’s ability to secure sufficient capital, liquidity of the Company, plans and references to future operations and results, critical accounting estimates, expected future yields and net charge off rates on loans, the dealer relationships,  the size and characteristics of the Canadian non-prime lending market and the continued development of the type and size of competitors in the market. 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 “expect”, “continue”, “anticipate”, “intend”, “aim”, “plan”, “believe”, “budget”, “estimate”, “forecast”, “foresee”, “target” 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. 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. Some important factors that could cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to, goeasy’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, offer 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, compete, 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. These and other factors could cause actual results to differ materially from our expectations expressed in the forward-looking statements, and further details and descriptions of these and other factors are disclosed in the Company’s Management’s Discussion and Analysis (“MD&A”), including under the section entitled “Risk Factors”.

The reader is cautioned to consider these, and other factors carefully and not to 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

goeasy Ltd. is a Canadian company, headquartered in Mississauga, Ontario, that provides non-prime leasing and lending services through its easyhome, easyfinancial and LendCare brands. Supported by over 2,500 employees, the Company offers a wide variety of financial products and services including unsecured and secured instalment loans, merchant financing through a variety of verticals and lease-to-own merchandise. Customers can transact seamlessly through an omni-channel model that includes online and mobile platforms, over 400 locations across Canada, and point-of-sale financing offered in the retail, powersports, automotive, home improvement and healthcare verticals, through over 10,300 merchant partners across Canada. Throughout the Company’s history, it has acquired and organically served over 1.4 million Canadians and originated over $14.3 billion in loans.

Accredited by the Better Business Bureau, goeasy is the proud recipient of several awards in recognition of its exceptional culture and continued business growth including 2024 Best Workplaces™ in Financial Services & Insurance, Waterstone Canada’s Most Admired Corporate Cultures, ranking on the 2022 Report on Business Women Lead Here executive gender diversity benchmark, placing on the Report on Business ranking of Canada’s Top Growing Companies, ranking on the TSX30, Greater Toronto Top Employers Award and has been certified as a Great Place to Work®. The Company is represented by a diverse group of team members from over 70 nationalities who believe strongly in giving back to communities in which it operates. To date, goeasy has raised and donated over $5.8 million to support its long-standing partnerships with BGC Canada and many other local charities. In 2023, the Company announced a 3-year, $1.4 million commitment to BGC Canada’s Food Fund.

goeasy Ltd.’s. common shares are listed on the TSX under the trading symbol “GSY”. goeasy is rated BB- with a stable trend from S&P and Ba3 with a stable trend from Moody’s.

For more information about goeasy and our business units, visit www.goeasy.com, www.easyfinancial.com, www.lendcare.ca,  www.easyhome.ca.

For further information contact:

Jason Mullins
President & Chief Executive Officer
(905) 272-2788

Farhan Ali Khan
Senior Vice President, Chief Corporate Development Officer
(905) 272-2788

Notes:
1 These are non-IFRS ratios. Refer to “Non-IFRS Measures and Other Financial Measures” section in this press release. 
2 These are non-IFRS measures. Refer to “Non-IFRS Measures and Other Financial Measures” section in this press release. 
3 These are supplementary financial measures. Refer to “Non-IFRS Measures and Other Financial Measures” section in this press release.
4 These are capital management measures. Refer to “Non-IFRS Measures and Other Financial Measures” section in this press release.
5 Non-IFRS ratios, non-IFRS measures, supplementary financial measures and capital management measures are not determined in accordance with IFRS, do not have standardized meanings and may not be comparable to similar financial measures presented by other companies.

 

goeasy Ltd.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(Unaudited)

(Expressed in thousands of Canadian dollars)

As At

As At

June 30,

December 31,

2024

2023

ASSETS 

Cash 

135,918

144,577

Accounts receivable

40,059

30,762

Prepaid expenses

12,801

9,462

Consumer loans receivable, net 

3,917,944

3,447,588

Investments 

54,326

61,464

Lease assets

41,860

45,187

Derivative financial assets 

35,638

21,904

Property and equipment, net

34,413

35,382

Right-of-use assets, net

55,806

61,987

Intangible assets, net

115,902

124,931

Goodwill

180,923

180,923

TOTAL ASSETS

4,625,590

4,164,167

LIABILITIES AND SHAREHOLDERS’ EQUITY

Liabilities

Revolving credit facility 

119,403

190,921

Accounts payable and accrued liabilities

73,304

72,409

Income taxes payable

4,220

24,691

Dividends payable 

19,651

15,960

Unearned revenue

26,296

26,965

Accrued interest

27,359

12,875

Deferred income tax liabilities, net 

17,683

24,259

Lease liabilities

64,158

70,809

Secured borrowings 

131,729

143,177

Revolving securitization warehouse facilities 

1,280,973

1,364,741

Derivative financial liabilities 

18,816

42,457

Notes payable 

1,697,135

1,120,826

TOTAL LIABILITIES

3,480,727

3,110,090

Shareholders’ equity

Share capital 

440,811

428,328

Contributed surplus

22,914

24,817

Accumulated other comprehensive loss

(14,635)

(9,721)

Retained earnings

695,773

610,653

TOTAL SHAREHOLDERS’ EQUITY

1,144,863

1,054,077

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

4,625,590

4,164,167

 

goeasy Ltd.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited) 

(Expressed in thousands of Canadian dollars, except earnings per share)

Three Months Ended

Six Months Ended

June 30,

June 30,

June 30,

June 30,

2024

2023

2024

2023

REVENUE

Interest income

274,722

213,563

534,794

414,991

Lease revenue

24,014

25,052

48,755

50,617

Commissions earned

70,967

57,532

134,931

111,448

Charges and fees

8,092

6,781

16,429

13,169

377,795

302,928

734,909

590,225

OPERATING EXPENSES

BAD DEBTS 

112,499

84,634

217,694

160,530

OTHER OPERATING EXPENSES

Salaries and benefits

54,569

50,546

107,019

101,709

Share-based compensation 

4,338

2,974

8,590

5,998

Technology costs

9,990

6,459

18,330

13,748

Advertising and promotion

9,166

8,992

16,940

16,239

Occupancy

5,168

6,396

10,494

13,040

Underwriting and collections

5,189

4,093

9,891

8,078

Other expenses

8,664

6,715

19,150

15,140

97,084

86,175

190,414

173,952

DEPRECIATION AND AMORTIZATION

Depreciation of lease assets

7,242

8,406

14,322

16,913

Amortization of intangible assets 

5,885

5,482

11,727

10,791

Depreciation of right-of-use assets

5,348

5,271

10,754

10,517

Depreciation of property and equipment

2,527

2,309

5,077

4,804

21,002

21,468

41,880

43,025

TOTAL OPERATING EXPENSES

230,585

192,277

449,988

377,507

OPERATING INCOME

147,210

110,651

284,921

212,718

OTHER (LOSS) INCOME 

(2,740)

2,330

(7,138)

4,313

FINANCE COSTS 

(54,684)

(37,653)

(105,997)

(71,879)

INCOME BEFORE INCOME TAXES

89,786

75,328

171,786

145,152

INCOME TAX EXPENSE (RECOVERY) 

Current

27,477

23,436

52,334

42,996

Deferred

(3,092)

(3,658)

(4,893)

(4,830)

24,385

19,778

47,441

38,166

NET INCOME

65,401

55,550

124,345

106,986

BASIC EARNINGS PER SHARE 

3.82

3.29

7.29

6.36

DILUTED EARNINGS PER SHARE 

3.76

3.26

7.17

6.27

 

SEGMENT REPORTING

(Expressed in thousands of Canadian dollars, except earnings per share)

Three Months Ended June 30, 2024

easyfinancial

easyhome

Corporate

Total

Revenue

Interest income

264,799

9,923

274,722

Lease revenue

24,014

24,014

Commissions earned

67,418

3,549

70,967

Charges and fees

7,294

798

8,092

339,511

38,284

377,795

Operating expenses 

Bad debts

109,530

2,969

112,499

Other operating expenses

55,265

14,002

27,817

97,084

Depreciation and amortization

9,872

9,426

1,704

21,002

174,667

26,397

29,521

230,585

Operating income (loss)

164,844

11,887

(29,521)

147,210

Other loss

(2,740)

Finance costs

(54,684)

Income before income taxes

89,786

Income taxes

24,385

Net income 

65,401

Diluted earnings per share

3.76

Three Months Ended June 30, 2023

easyfinancial

easyhome

Corporate

Total

Revenue

Interest income

204,912

8,651

213,563

Lease revenue

25,052

25,052

Commissions earned

53,973

3,559

57,532

Charges and fees

5,868

913

6,781

264,753

38,175

302,928

Operating expenses 

Bad debts

81,181

3,453

84,634

Other operating expenses

48,846

14,978

22,351

86,175

Depreciation and amortization

9,305

10,544

1,619

21,468

139,332

28,975

23,970

192,277

Operating income (loss)

125,421

9,200

(23,970)

110,651

Other income

2,330

Finance costs

(37,653)

Income before income taxes

75,328

Income taxes

19,778

Net income 

55,550

Diluted earnings per share

3.26

 

Six Months Ended June 30, 2024

easyfinancial

easyhome

Corporate

Total

Revenue

Interest income

514,938

19,856

534,794

Lease revenue

48,755

48,755

Commissions earned

127,912

7,019

134,931

Charges and fees

14,717

1,712

16,429

657,567

77,342

734,909

Operating expenses 

Bad debts

210,833

6,861

217,694

Other operating expenses

107,276

28,564

54,574

190,414

Depreciation and amortization

19,747

18,709

3,424

41,880

337,856

54,134

57,998

449,988

Operating income (loss)

319,711

23,208

(57,998)

284,921

Other loss

(7,138)

Finance costs

(105,997)

Income before income taxes

171,786

Income taxes

47,441

Net income 

124,345

Diluted earnings per share

7.17

Six Months Ended June 30, 2023

easyfinancial

easyhome

Corporate

Total

Revenue

Interest income

398,091

16,900

414,991

Lease revenue

50,617

50,617

Commissions earned

104,357

7,091

111,448

Charges and fees

11,282

1,887

13,169

513,730

76,495

590,225

Operating expenses 

Bad debts

154,446

6,084

160,530

Other operating expenses

96,624

30,826

46,502

173,952

Depreciation and amortization

18,511

21,278

3,236

43,025

269,581

58,188

49,738

377,507

Operating income (loss)

244,149

18,307

(49,738)

212,718

Other income

4,313

Finance costs

(71,879)

Income before income taxes

145,152

Income taxes

38,166

Net income 

106,986

Diluted earnings per share

6.27

 

SUMMARY OF FINANCIAL RESULTS AND KEY PERFORMANCE INDICATORS

(Expressed in thousands of Canadian dollars, except earnings per share and percentages)

Three Months Ended

June 30, 

June 30, 

Variance 

Variance 

2024

2023

$ / bps

% change

Summary Financial Results

Revenue

377,795

302,928

74,867

24.7 %

Bad debts

112,499

84,634

27,865

32.9 %

Other operating expenses

97,084

86,175

10,909

12.7 %

EBITDA1

158,230

126,043

32,187

25.5 %

EBITDA margin1

41.9 %

41.6 %

30 bps

0.7 %

Depreciation and amortization

21,002

21,468

(466)

(2.2 %)

Operating income

147,210

110,651

36,559

33.0 %

Operating margin

39.0 %

36.5 %

250 bps

6.8 %

Other (loss) income

(2,740)

2,330

(5,070)

(217.6 %)

Finance costs

54,684

37,653

17,031

45.2 %

Effective income tax rate

27.2 %

26.3 %

90 bps

3.4 %

Net income 

65,401

55,550

9,851

17.7 %

Diluted earnings per share

3.76

3.26

0.50

15.3 %

Return on receivables

6.5 %

7.1 %

(60 bps)

(8.5 %)

Return on assets

5.8 %

6.2 %

(40 bps)

(6.5 %)

Return on equity

23.3 %

24.0 %

(70 bps)

(2.9 %)

Return on tangible common equity1

31.0 %

34.6 %

(360 bps)

(10.4 %)

Adjusted Financial Results1

Other operating expenses

101,807

94,440

7,367

7.8 %

Efficiency ratio

26.9 %

31.2 %

(430 bps)

(13.8 %)

Operating income

153,004

114,067

38,937

34.1 %

Operating margin

40.5 %

37.7 %

280 bps

7.4 %

Net income

71,332

56,039

15,293

27.3 %

Diluted earnings per share

4.10

3.28

0.82

25.0 %

Return on receivables

7.1 %

7.2 %

(10 bps)

(1.4 %)

Return on assets

6.3 %

6.2 %

10 bps

1.6 %

Return on equity

25.4 %

24.2 %

120 bps

5.0 %

Return on tangible common equity

32.6 %

33.4 %

(80 bps)

(2.4 %)

Key Performance Indicators

Segment Financials

easyfinancial revenue

339,511

264,753

74,758

28.2 %

easyfinancial operating margin

48.6 %

47.4 %

120 bps

2.5 %

easyhome revenue

38,284

38,175

109

0.3 %

easyhome operating margin

31.0 %

24.1 %

690 bps

28.6 %

Portfolio Indicators

Gross consumer loans receivable

4,138,155

3,200,213

937,942

29.3 %

Growth in consumer loans receivable

286,076

209,527

76,549

36.5 %

Gross loan originations

826,659

666,783

159,876

24.0 %

Total yield on consumer loans (including ancillary products)1

34.9 %

35.4 %

(50 bps)

(1.4 %)

Net charge offs as a percentage of average gross consumer loans receivable

9.3 %

9.1 %

20 bps

2.2 %

Free cash flows from operations before net growth in gross consumer loans receivable1

93,084

76,473

16,611

21.7 %

Potential monthly leasing revenue1

7,254

7,558

(304)

(4.0 %)

1 EBITDA, adjusted other operating expenses, adjusted operating income, adjusted net income and free cash flows from operations before net growth in gross consumer loans receivable are non-IFRS measures. EBITDA margin, efficiency ratio, adjusted operating margin, adjusted diluted earnings per share, adjusted return on equity, adjusted return on receivable, adjusted return on assets, reported and adjusted return on tangible common equity and total yield on consumer loans (including ancillary products) are non-IFRS ratios. Refer to “Non-IFRS Measures and Other Financial Measures” section in this press release.

 

Six Months Ended

June 30, 

June 30, 

Variance 

Variance 

2024

2023

$ / bps

% change

Summary Financial Results

Revenue

734,909

590,225

144,684

24.5 %

Bad debts

217,694

160,530

57,164

35.6 %

Other operating expenses

190,414

173,952

16,462

9.5 %

EBITDA1

305,341

243,143

62,198

25.6 %

EBITDA margin1

41.5 %

41.2 %

30 bps

0.7 %

Depreciation and amortization

41,880

43,025

(1,145)

(2.7 %)

Operating income

284,921

212,718

72,203

33.9 %

Operating margin

38.8 %

36.0 %

280 bps

7.8 %

Other (loss) income 

(7,138)

4,313

(11,451)

(265.5 %)

Finance costs

105,997

71,879

34,118

47.5 %

Effective income tax rate

27.6 %

26.3 %

130 bps

4.9 %

Net income 

124,345

106,986

17,359

16.2 %

Diluted earnings per share

7.17

6.27

0.90

14.4 %

Return on receivables

6.4 %

7.1 %

(70 bps)

(9.9 %)

Return on assets

5.6 %

6.1 %

(50 bps)

(8.2 %)

Return on equity

22.6 %

23.6 %

(100 bps)

(4.2 %)

Return on tangible common equity1

30.3 %

34.4 %

(410 bps)

(11.9 %)

Adjusted Financial Results1

Other operating expenses

199,492

189,621

9,871

5.2 %

Efficiency ratio

27.1 %

32.1 %

(500 bps)

(15.6 %)

Operating income

296,715

220,512

76,203

34.6 %

Operating margin

40.4 %

37.4 %

300 bps

8.0 %

Net income

137,620

108,973

28,647

26.3 %

Diluted earnings per share

7.94

6.39

1.55

24.3 %

Return on receivables

7.0 %

7.2 %

(20 bps)

(2.8 %)

Return on assets

6.3 %

6.2 %

10 bps

1.6 %

Return on equity

25.0 %

24.0 %

100 bps

4.2 %

Return on tangible common equity

32.3 %

33.6 %

(130 bps)

(3.9 %)

Key Performance Indicators

Segment Financials

easyfinancial revenue

657,567

513,730

143,837

28.0 %

easyfinancial operating margin

48.6 %

47.5 %

110 bps

2.3 %

easyhome revenue

77,342

76,495

847

1.1 %

easyhome operating margin

30.0 %

23.9 %

610 bps

25.5 %

Portfolio Indicators

Gross consumer loans receivable

4,138,155

3,200,213

937,942

29.3 %

Growth in consumer loans receivable

492,953

405,519

87,434

21.6 %

Gross loan originations

1,513,092

1,282,402

230,690

18.0 %

Total yield on consumer loans (including ancillary products)1

34.9 %

35.5 %

(60 bps)

(1.7 %)

Net charge offs as a percentage of average gross consumer loans receivable

9.2 %

9.0 %

20 bps

2.2 %

Free cash flows from operations before net growth in gross consumer loans receivable1

170,226

158,574

11,652

7.3 %

Potential monthly leasing revenue1

7,254

7,558

(304)

(4.0 %)

1 EBITDA, adjusted other operating expenses, adjusted operating income, adjusted net income and free cash flows from operations before net growth in gross consumer loans receivable are non-IFRS measures. EBITDA margin, efficiency ratio, adjusted operating margin, adjusted diluted earnings per share, adjusted return on equity, adjusted return on receivable, adjusted return on assets, reported and adjusted return on tangible common equity and total yield on consumer loans (including ancillary products) are non-IFRS ratios. Refer to “Non-IFRS Measures and Other Financial Measures” section in this press release.

Non-IFRS Measures and Other Financial Measures

The Company uses a number of financial measures to assess its performance. Some of these measures are not calculated in accordance with International Financial Reporting Standards (IFRS) as issued by International Accounting Standards Board (IASB), are not identified by IFRS and do not have standardized meanings that would ensure consistency and comparability among companies using these measures. The Company believes that non-IFRS measures are useful in assessing ongoing business performance and provide readers with a better understanding of how management assesses performance. These non-IFRS measures are used throughout this press release and listed below. An explanation of the composition of non-IFRS measures and other financial measures can be found in the Company’s MD&A, available on www.sedarplus.ca.

Adjusted Net Income and Adjusted Diluted Earnings Per Share

Adjusted net income is a non-IFRS measure, while adjusted diluted earnings per share is a non-IFRS ratio. Refer to “Key Performance Indicators and Non-IFRS Measures” section on page 31 of the Company’s MD&A for the three and six-month periods ended June 30, 2024. Items used to calculate adjusted net income and adjusted earnings per share for the three and six-month periods ended June 30, 2024 and 2023 include those indicated in the chart below:

Three Months Ended

Six Months Ended

 

($ in 000’s except earnings per share)

June 30,

2024

June 30,

2023

June 30,

2024

June 30,

2023

Net income as stated

65,401

55,550

124,345

106,986

Impact of adjusting items

Other operating expenses

    Advisory costs1

2,387

4,930

Integration costs2

132

141

314

310

Contract exit fee4

934

Depreciation and amortization

Amortization of acquired intangible assets3

3,275

3,275

6,550

6,550

Other loss (income)5

2,740

(2,330)

7,138

(4,313)

Finance costs

Fair value change on prepayment options related to Notes Payable7

(960)

(2,158)

Total pre-tax impact of adjusting items

7,574

1,086

16,774

3,481

Income tax impact of above     adjusting items

(1,643)

(597)

(3,499)

(1,494)

After-tax impact of adjusting items

5,931

489

13,275

1,987

Adjusted net income

71,332

56,039

137,620

108,973

Weighted average number of diluted shares outstanding

17,377

17,061

17,339

17,064

Diluted earnings per share as stated

3.76

3.26

7.17

6.27

Per share impact of adjusting items

0.34

0.02

0.77

0.12

Adjusted diluted earnings per share

4.10

3.28

7.94

6.39

Adjusting items related to the advisory costs

1 Advisory costs for the three and six-month periods ended June 30, 2024 were related to non-recurring advisory, consulting and legal costs.

Adjusting items related to the LendCare acquisition

2 Integration costs related to employee incentives, representation and warranty insurance costs, and other integration costs related to the acquisition of LendCare.

3 Amortization of the $131 million intangible asset related to the acquisition of LendCare with an estimated useful life of ten years.

Adjusting items related to a contract exit fee

4 In the first quarter of 2023, the Company settled its dispute with the third-party technology provider that was contracted in 2020 to develop a new loan management system.

Adjusting item related to other income (loss)

5 For the three and six-month periods ended June 30, 2024 and 2023, net investment (losses) income were mainly due to fair value changes in the Company’s investments. 

Adjusting item related to prepayment options embedded in the Notes Payable

6 For the three and six-month periods ended June 30, 2024, the Company recognized a fair value income on the prepayment options related to Notes Payable.

Adjusted Other Operating Expenses and Efficiency Ratio

Adjusted other operating expenses is a non-IFRS measure, while efficiency ratio is a non-IFRS ratio. Refer to “Key Performance Indicators and Non-IFRS Measures” section on page 31 of the Company’s MD&A for the three and six-month periods ended June 30, 2024. Items used to calculate adjusted other operating expenses and efficiency ratio for the three and six-month periods ended June 30, 2024 and 2023 include those indicated in the chart below:

Three Months Ended

Six Months Ended

 

($ in 000’s except earnings per share)

June 30,

2024

June 30,

2023

June 30,

2024

June 30,

2023

Other operating expenses as stated

97,084

86,175

190,414

173,952

Impact of adjusting items1

Other operating expenses

Advisory costs

(2,387)

(4,930)

Integration costs

(132)

(141)

(314)

(310)

Contract exit fee

(934)

Depreciation and amortization

Depreciation of lease assets

7,242

8,406

14,322

16,913

Total impact of adjusting items

4,723

8,265

9,078

15,669

Adjusted other operating expenses

101,807

94,440

199,492

189,621

Total revenue

377,795

302,928

734,909

590,225

Efficiency ratio

26.9 %

31.2 %

27.1 %

32.1 %

1 For explanation of adjusting items, refer to the corresponding “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section.

Adjusted Operating Income and Adjusted Operating Margin

Adjusted operating income is a non-IFRS measure, while adjusted operating margin is a non-IFRS ratio. Refer to “Key Performance Indicators and Non-IFRS Measures” section on page 31 of the Company’s MD&A for the three and six-month periods ended June 30, 2024. Items used to calculate adjusted operating income and adjusted operating margins for the three and six-month periods ended June 30, 2024 and 2023 include those indicated in the chart below:

Three Months Ended

 

($ in 000’s except percentages)

June 30,

2024

June 30,

2024
(adjusted)

June 30,

2024

June 30,

2023 (adjusted)

easyfinancial

Operating income

164,844

164,844

125,421

125,421

Divided by revenue

339,511

339,511

264,753

264,753

easyfinancial operating margin

48.6 %

48.6 %

47.4 %

47.4 %

easyhome

Operating income

11,887

11,887

9,200

9,200

Divided by revenue

38,284

38,284

38,175

38,175

easyhome operating margin

31.0 %

31.0 %

24.1 %

24.1 %

Total

Operating income

147,210

147,210

110,651

110,651

Other operating expenses1 

Advisory costs

2,387

Integration costs

132

141

Depreciation and amortization1

Amortization of acquired intangible assets

3,275

3,275

Adjusted operating income

147,210

153,004

110,651

114,067

Divided by revenue

377,795

377,795

302,928

302,928

Total operating margin

39.0 %

40.5 %

36.5 %

37.7 %

1 For explanation of adjusting items, refer to the corresponding “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section.

Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”) and EBITDA Margin

EBITDA is a non-IFRS measure, while EBITDA margin is a non-IFRS ratio. Refer to “Key Performance Indicators and Non-IFRS Measures” section on page 31 of the Company’s MD&A for the three and six-month periods ended June 30, 2024. Items used to calculate EBITDA and EBITDA margin for the three and six-month periods ended June 30, 2024 and 2023 include those indicated in the chart below:

Three Months Ended

Six Months Ended

($in 000’s except percentages)

June 30,

2024

June 30,

2023

June 30,

2024

June 30,

2023

Net income as stated

65,401

55,550

124,345

106,986

Finance cost

54,684

37,653

105,997

71,879

Income tax expense

24,385

19,778

47,441

38,166

Depreciation and amortization

21,002

21,468

41,880

43,025

Depreciation of lease assets

(7,242)

(8,406)

(14,322)

(16,913)

EBITDA

158,230

126,043

305,341

243,143

Divided by revenue

377,795

302,928

734,909

590,225

EBITDA margin

41.9 %

41.6 %

41.5 %

41.2 %

Free Cash Flow from Operations before Net Growth in Gross Consumer Loans Receivable

Free cash flow from operations before net growth in gross consumer loans receivable is a non-IFRS measure. Refer to “Key Performance Indicators and Non-IFRS Measures” section on page 31 of the Company’s MD&A for the three and six-month periods ended June 30, 2024. Items used to calculate free cash flow from operations before net growth in gross consumer loans receivable for the three and six-month periods ended June 30, 2024 and 2023 include those indicated in the chart below:

Three Months Ended

Six Months Ended

June 30,

2024

June 30,

2023

June 30,

2024

June 30,

2023

Cash used in operating activities

(192,992)

(133,054)

(322,727)

(246,945)

Net growth in gross consumer loans receivable during the period

286,076

209,527

492,953

405,519

Free cash flows from operations before net growth in gross consumer loans receivable

93,084

76,473

170,226

158,574

Adjusted Return on Receivables

Adjusted return on receivables is a non-IFRS ratio. Refer to “Key Performance Indicators and Non-IFRS Measures” section on page 31 of the Company’s MD&A for the three and six-month periods ended June 30, 2024. Items used to calculate adjusted return on receivables for the three and six-month periods ended June 30, 2024 and 2023 include those indicated in the chart below:

Three Months Ended

($in 000’s except percentages)

June 30,

2024

June 30,

2024 

(adjusted)

June 30,

2023

June 30,

2023 

(adjusted)

Net income as stated

65,401

65,401

55,550

55,550

After-tax impact of adjusting items1

5,931

489

Adjusted net income

65,401

71,332

55,550

56,039

Multiplied by number of periods in a year

X 4

X 4

X 4

X 4

Divided by average gross consumer loans receivable

4,041,884

4,041,884

3,125,896

3,125,896

Return on receivables

6.5 %

7.1 %

7.1 %

7.2 %

1 For explanation of adjusting items, refer to the corresponding “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section.

Six Months Ended

($in 000’s except percentages)

June 30,

2024

June 30,

2024 

(adjusted)

June 30,

2023

June 30,

2023 

(adjusted)

Net income as stated

124,345

124,345

106,986

106,986

After-tax impact of adjusting items1

13,275

1,987

Adjusted net income

124,345

137,620

106,986

108,973

Multiplied by number of periods in a year

X 4/2

X 4/2

X 4/2

X 4/2

Divided by average gross consumer loans receivable

3,910,097

3,910,097

3,025,402

3,025,402

Return on receivables

6.4 %

7.0 %

7.1 %

7.2 %

1 For explanation of adjusting items, refer to the corresponding “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section.

Adjusted Return on Assets

Adjusted return on assets is a non-IFRS ratio. Refer to “Key Performance Indicators and Non-IFRS Measures” section on page 31 of the Company’s MD&A for the three and six-month periods ended June 30, 2024. Items used to calculate adjusted return on assets for the three and six-month periods ended June 30, 2024 and 2023 include those indicated in the chart below:

Three Months Ended

($in 000’s except percentages)

June 30,

2024

June 30,

2024 

(adjusted)

June 30,

2023

June 30,

2023 

(adjusted)

Net income as stated

65,401

65,401

55,550

55,550

After-tax impact of adjusting items1

5,931

489

Adjusted net income

65,401

71,332

55,550

56,039

Multiplied by number of periods in a year

X 4

X 4

X 4

X 4

Divided by average total assets for the period

4,520,809

4,520,809

3,587,315

3,587,315

Return on assets

5.8 %

6.3 %

6.2 %

6.2 %

1 For explanation of adjusting items, refer to the corresponding “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section.

 

Six Months Ended

($in 000’s except percentages)

June 30,

2024

June 30,

2024 

(adjusted)

June 30,

2023

June 30,

2023 

(adjusted)

Net income as stated

124,345

124,345

106,986

106,986

After-tax impact of adjusting items1

13,275

1,987

Adjusted net income

124,345

137,620

106,986

108,973

Multiplied by number of periods in a year

X 4/2

X 4/2

X 4/2

X 4/2

Divided by average total assets for the period

4,401,928

4,401,928

3,492,506

3,492,506

Return on assets

5.6 %

6.3 %

6.1 %

6.2 %

1 For explanation of adjusting items, refer to the corresponding “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section.

Adjusted Return on Equity

Adjusted return on equity is a non-IFRS ratio. Refer to “Key Performance Indicators and Non-IFRS Measures” section on page 31 of the Company’s MD&A for the three and six-month periods ended June 30, 2024. Items used to calculate adjusted return on equity for the three and six-month periods ended June 30, 2024 and 2023 include those indicated in the chart below:

Three Months Ended

($in 000’s except percentages)

June 30,

2024

June 30,

2024 

(adjusted)

June 30,

2023

June 30,

2023

(adjusted)

Net income as stated

65,401

65,401

55,550

55,550

After-tax impact of adjusting items1

5,931

489

Adjusted net income

65,401

71,332

55,550

56,039

Multiplied by number of periods in a year

X 4

X 4

X 4

X 4

Divided by average shareholders’ equity for the period

1,124,055

1,124,055

927,703

927,703

Return on equity

23.3 %

25.4 %

24.0 %

24.2 %

1 For explanation of adjusting items, refer to the corresponding “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section.

 

Six Months Ended

($in 000’s except percentages)

June 30,

2024

June 30,

2024 

(adjusted)

June 30,

2023

June 30,

2023

(adjusted)

Net income as stated

124,345

124,345

106,986

106,986

After-tax impact of adjusting items1

13,275

1,987

Adjusted net income

124,345

137,620

106,986

108,973

Multiplied by number of periods in a year

X 4/2

X 4/2

X 4/2

X 4/2

Divided by average shareholders’ equity for the period

1,100,729

1,100,729

908,364

908,364

Return on equity

22.6 %

25.0 %

23.6 %

24.0 %

1 For explanation of adjusting items, refer to the corresponding “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section.

Reported and Adjusted Return on Tangible Common Equity

Reported and adjusted return on tangible common equity are non-IFRS ratios. Refer to “Key Performance Indicators and Non-IFRS Measures” section on page 31 of the Company’s MD&A for the three and six-month periods ended June 30, 2024. Items used to calculate reported and adjusted return on tangible common equity for the three and six-month periods ended June 30, 2024 and 2023 include those indicated in the chart below:

Three Months Ended

($ in 000’s except percentages)

June 30,

2024

June 30,

2024 

(adjusted)

June 30,

2023

June 30,

2023 

(adjusted)

Net income as stated

65,401

65,401

55,550

55,550

Amortization of acquired intangible assets

3,275

3,275

3,275

3,275

Income tax impact of the above item

(868)

(868)

(868)

(868)

Net income before amortization of acquired intangible assets, net of income tax

67,808

67,808

57,957

57,957

Impact of adjusting items1

Other operating expenses

Advisory costs

2,387

Integration costs

132

141

Other loss (income)

2,740

(2,330)

Finance costs

Fair value change on prepayment options related to Notes Payable

(960)

Total pre-tax impact of adjusting items

4,299

(2,189)

Income tax impact of above adjusting items

(775)

271

After-tax impact of adjusting items

3,524

(1,918)

Adjusted net income

67,808

71,332

57,957

56,039

Multiplied by number of periods in a year

X 4

X 4

X 4

X 4

Average shareholders’ equity

1,124,055

1,124,055

927,703

927,703

Average goodwill

(180,923)

(180,923)

(180,923)

(180,923)

Average acquired intangible assets2

(91,154)

(91,154)

(104,254)

(104,254)

Average related deferred tax liabilities

24,156

24,156

27,627

27,627

Divided by average tangible common equity

876,134

876,134

670,153

670,153

Return on tangible common equity

31.0 %

32.6 %

34.6 %

33.4 %

1 For explanation of adjusting items, refer to the corresponding “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section.

2 Excludes intangible assets relating to software.

 

Six Months Ended

($ in 000’s except percentages)

June 30,

2024

June 30,

2024 

(adjusted)

June 30,

2023

June 30,

2023 

(adjusted)

Net income as stated

124,345

124,345

106,986

106,986

Amortization of acquired intangible assets

6,550

6,550

6,550

6,550

Income tax impact of the above item

(1,736)

(1,736)

(1,736)

(1,736)

Net income before amortization of acquired intangible assets, net of income tax

129,159

129,159

111,800

111,800

Impact of adjusting items1

Other operating expenses

Advisory costs

4,930

Integration costs

314

310

Contract exit fee

934

Other loss (income)

7,138

(4,313)

Finance costs

Fair value change on prepayment options related to Notes Payable

(2,158)

Total pre-tax impact of adjusting items

10,224

(3,069)

Income tax impact of above adjusting items

(1,763)

242

After-tax impact of adjusting items

8,461

(2,827)

Adjusted net income

129,159

137,620

111,800

108,973

Multiplied by number of periods in a year

X 4/2

X 4/2

X 4/2

X 4/2

Average shareholders’ equity

1,100,729

1,100,729

908,364

908,364

Average goodwill

(180,923)

(180,923)

(180,923)

(180,923)

Average acquired intangible assets2

(92,792)

(92,792)

(105,892)

(105,892)

Average related deferred tax liabilities

24,590

24,590

28,061

28,061

Divided by average tangible common equity

851,604

851,604

649,610

649,610

Return on tangible common equity

30.3 %

32.3 %

34.4 %

33.6 %

1 For explanation of adjusting items, refer to the corresponding “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section.

2 Excludes intangible assets relating to software.

easyhome Financial Revenue

easyhome financial revenue is a non-IFRS measure. It’s calculated as total company revenue less easyfinancial revenue and leasing revenue. The Company believes that easyhome financial revenue is an important measure of the performance of the easyhome segment. Items used to calculate easyhome financial revenue for the three and six-month periods ended June 30, 2024 and 2023 include those indicated in the chart below:

($in 000’s)

Three Months Ended

March 31,

2024

March 31,

2023

Total company revenue

377,795

302,928

Less: easyfinancial revenue

(339,511)

(264,753)

Less: leasing revenue

(25,408)

(26,616)

easyhome financial revenue

12,876

11,559

Total Yield on Consumer Loans as a Percentage of Average Gross Consumer Loans Receivable

Total yield on consumer loans as a percentage of average gross consumer loans receivable is a non-IFRS ratio. See description in section “Portfolio Analysis” on page 21 of the Company’s MD&A for the three and six-month periods ended June 30, 2024. Items used to calculate total yield on consumer loans as a percentage of average gross consumer loans receivable for the three and six-month periods ended June 30, 2024 and 2023 include those indicated in the chart below:

Three Months Ended

Six Months Ended

($in 000’s except percentages)

June 30,

2024

June 30,

2023

June 30,

2024

June 30,

2023

Total Company revenue

377,795

302,928

734,909

590,225

Less: Leasing revenue

(25,408)

(26,616)

(51,657)

(53,764)

Financial revenue

352,387

276,312

683,252

536,461

Multiplied by number of periods in a year

X 4

X 4

X 4/2

X 4/2

Divided by average gross consumer loans receivable

4,041,884

3,125,896

3,910,097

3,025,402

Total yield on consumer loans as a percentage of average gross consumer loans receivable (annualized)

34.9 %

35.4 %

34.9 %

35.5 %

Net Principal Written and Percentage Net Principal Written to New Customers

Net principal written (Net loan advances) is a non-IFRS measure. See description in section “Portfolio Analysis” on page 21 of the Company’s MD&A for the three and six-month periods ended June 30, 2024. The percentage of net loan advances to new customers is a non-IFRS ratio. It is calculated as loan originations to new customers divided by the net principal written. The Company uses percentage of net loan advances to new customers, among other measures, to assess the operating performance of its lending business.  Items used to calculate the percentage of net loan advances to new customers for the three and six-month periods ended June 30, 2024 and 2023 include those indicated in the chart below:

Three Months Ended

Six Months Ended

($ in 000’s)

June 30,

2024

June 30,

2023

June 30,

2024

June 30,

2023

Gross loan originations

826,659

666,783

1,513,092

1,282,402

Loan originations to new customers

458,920

348,695

814,801

651,238

Loan originations to existing customers

367,739

318,088

698,291

631,164

Less: Proceeds applied to repay existing loans

(184,658)

(174,045)

(355,740)

(336,999)

Net advance to existing customers

183,081

144,043

342,551

294,165

Net principal written

642,001

492,738

1,157,352

945,403

Percentage net advances to new customers

71 %

71 %

70 %

69 %

Net Debt to Net Capitalization

Net debt to net capitalization is a capital management measure. Refer to “Financial Condition” section on page 43 of the Company’s MD&A for the three and six-month periods ended June 30, 2024.

Average Loan Book Per Branch

Average loan book per branch is a supplementary financial measure. It is calculated as gross consumer loans receivable held by easyfinancial branch locations divided by the number of total easyfinancial branch locations.

Weighted Average Interest Rate

Weighted average interest rate is a supplementary financial measure. It is calculated as the sum of individual loan balance multiplied by interest rate divided by gross consumer loans receivable.

SOURCE goeasy Ltd

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Workday Adaptive Planning Achieves FedRAMP Moderate Authorization to Support Federal Workforce and Budget Planning

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New Milestone Helps Federal Agencies Plan Workforce and Budgets in One Secure, Modern System

WASHINGTON, July 23, 2026 /PRNewswire/ — Workday Government, a wholly owned subsidiary of Workday, Inc. (NASDAQ: WDAY), the enterprise AI platform for HR, finance, and IT, today announced that Workday Adaptive Planning has achieved FedRAMP Authorization at the Moderate Impact Level. The authorization confirms that Workday Adaptive Planning meets the security and compliance standards required to handle sensitive, unclassified federal data, giving agencies a secure, compliant foundation for modern planning.

Federal agencies are under pressure to do more with less, manage costs, and maintain clear records of their decisions. Yet disconnected data, legacy systems, and manual spreadsheet work can make it hard to understand how organizational decisions affect the workforce. Workday Adaptive Planning helps agencies modernize planning by bringing workforce planning, budgeting, and forecasting together so agencies can plan with connected workforce and financial data.

“Federal agencies must align their people, funding, and priorities to deliver their missions effectively,” said Lynn Martin, general manager, Workday Government. “With FedRAMP Moderate authorization, Workday Adaptive Planning gives agencies the secure foundation they need to unify workforce and financial planning. This clarity allows leaders to evaluate trade-offs, allocate resources with impact, and prepare confidently for what lies ahead.”

With Workday Adaptive Planning, agencies can model and assess the workforce implications of organizational change, such as hiring freezes, budget reductions, or reorganizations, to understand the potential effects on headcount, costs, project timelines, and mission readiness. Agencies can also use workforce data to identify talent trends and skills gaps. Finance teams can evaluate competing program requests, allocate costs across funds and programs, monitor budgets throughout the procurement lifecycle, and identify potential overruns earlier. Built-in audit capabilities and FIPS 140-3 compliant security help agencies strengthen fiscal discipline, maintain compliance, and make faster, better-informed decisions.

“Federal agencies need a planning tool they can trust to protect their data and still move fast,” said Ben Pierce, general manager, Workday Adaptive Planning. “With FedRAMP authorization, Workday Adaptive Planning gives them a secure, modern way to make budgeting and workforce planning less painful and a lot more useful.”

As part of Workday Government Cloud, Workday Adaptive Planning works alongside Workday human capital management and financial solutions, helping agencies plan with connected data. By bringing planning into the same platform that powers HR and finance, Workday Government helps agencies move beyond systems that simply record work to a modern, connected foundation for planning safely and collaboratively.

Workday Adaptive Planning is expected to be available to Workday Government customers in early 2027.

For More Information

Explore how Workday Adaptive Planning gives government organizations the power to plan, budget, and forecast the future here.Learn about the mission of Workday Government here.

About Workday Government
Workday Government is a wholly owned subsidiary of Workday, the enterprise AI platform for HR, finance, and IT. Workday Government is dedicated to serving the U.S. government by unifying HR and finance on one intelligent platform with AI at the core, empowering agencies at every level with the clarity, confidence, and insights they need to adapt quickly, make better decisions, and deliver on their missions. Workday Government supports a range of agencies across the civilian, defense, and intelligence communities. For more information about Workday Government, visit workday.com/federal. For more information about Workday visit workday.com.

Forward-Looking Statements
This press release contains forward-looking statements including, among other things, statements regarding Workday’s plans, beliefs, and expectations. These forward-looking statements are based only on currently available information and our current beliefs, expectations, and assumptions. Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties, assumptions, and changes in circumstances that are difficult to predict and many of which are outside of our control. If the risks materialize, assumptions prove incorrect, or we experience unexpected changes in circumstances, actual results could differ materially from the results implied by these forward-looking statements, and therefore you should not rely on any forward-looking statements. Risks include, but are not limited to, risks described in our filings with the Securities and Exchange Commission (“SEC”), including our most recent report on Form 10-Q or Form 10-K and other reports that we have filed and will file with the SEC from time to time, which could cause actual results to vary from expectations. Workday assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release, except as required by law.

Any unreleased services, features, or functions referenced in this document, our website, or other press releases or public statements that are not currently available are subject to change at Workday’s discretion and may not be delivered as planned or at all. Customers who purchase Workday services should make their purchase decisions based upon services, features, and functions that are currently available.

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SOURCE Workday Inc.

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Ontinue Wins Gold Stevie® Award for Advancing the Future of Managed Security Operations

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Recognition Honors the Innovation Behind Ontinue’s Agentic SOC, Where AI Agents And Expert Cyber Defenders Work Together to Deliver Autonomous, Governed Security Operations

ZURICH, July 23, 2026 /PRNewswire/ — Ontinue, a leading MXDR partner providing nonstop managed security operations through its Agentic SOC, today announced it received a Gold Stevie® for Technology Excellence Award, recognizing the innovation behind its ION MXDR platform and Agentic SOC. The award was presented in the New Product of the Year – Information Technology (Cybersecurity) category, honoring Ontinue’s continued advancement of AI-powered security operations.

Ontinue was recognized for pioneering the Agentic SOC, a new operating model that treats security decision-making itself as software: governed, measurable, and built to scale with attackers who now operate at machine speed. Rather than layering AI onto existing workflows, Ontinue re-engineered its ION MXDR platform around a multi-agent architecture, with specialized agents spanning threat hunting, investigation, response, and posture hardening, that reason over each customer’s accumulated context and progressively take on more decision-making as trust is earned, while Ontinue’s Cyber Defenders retain governance and accountability throughout.

Ontinue defines an Agentic SOC as a security operations model in which software agents progressively assume responsibility for security decisions and actions, under continuous human governance, using accumulated context, policy, and learned behavior. In December 2024, this model went live in production for every ION MXDR customer, extending autonomous investigation to Tier 2-level incidents for the first time in the industry. The result is a platform that acts less like a tool and more like a team.

Ontinue’s Agentic SOC, by the numbers:

Autonomously investigates incidents within minutesCuts mean time to investigate by 50 percentResolves 99.5 percent of incidents without customer involvementDrives median response time for high-severity incidents under nine minutesPre-approves 97 percent of response actions, based on trust earned directly from customers

For Ontinue’s customers, that translates directly into business outcomes, such has stronger Secure Scores, security teams freed from alert fatigue, and hundreds of analyst hours returned to work that actually moves the business forward.

“The cybersecurity industry doesn’t need more AI features, it needs a fundamentally better way to operate security,” said Moritz Mann, Chief Executive Officer at Ontinue. “This recognition validates the work our teams have done over the past two years to transform AI from an assistant into a trusted operational capability. It’s recognition of an operating model that is already delivering measurable outcomes for customers every day.”

“We congratulate all of the winners in the third annual Stevie® Awards for Technology Excellence for their outstanding achievements,” said Stevie Awards President Maggie Miller. “Their innovations are helping shape the future of technology across every industry, and we look forward to celebrating their success on October 28.”

The Stevie Awards for Technology Excellence celebrate the remarkable accomplishments of individuals, teams, and organizations shaping the future of technology across all industry sectors. More than 700 nominations from organizations of all sizes in 37 nations and territories were submitted this year for consideration in a wide range of tech-related categories. More than 180 professionals worldwide participated in the judging process to select this year’s honorees.

Details about the Stevie Awards for Technology Excellence and the list of 2026 Stevie winners are available at http://Tech.StevieAwards.com.

About Ontinue
As a leading provider of AI-powered managed security operations, Ontinue is on a mission to give every organization the freedom to focus on what they do best; by making nonstop security excellence accessible, not just aspirational. By combining advanced AI with deep human expertise, Ontinue delivers managed security operations that are tailored to each organization’s unique environment, operational needs, and risk profile.

Ontinue’s ION SecOps Platform integrates AI-driven insights, automation, and real-time collaboration to continuously prevent, detect, and respond to threats. With deep expertise in Microsoft security technologies, Ontinue helps customers maximize the value of their existing investments while achieving stronger, more scalable security outcomes.

Continuous protection. AI-powered Nonstop SecOps. That’s Ontinue.

About the Stevie Awards
Stevie Awards are conferred in nine programs: the Asia-Pacific Stevie Awards, the German Stevie Awards, the Middle East & North Africa Stevie Awards, The American Business Awards®, The International Business Awards®, the Stevie Awards for Great Employers, the Stevie Awards for Women in Business, the Stevie Awards for Technology Excellence and the Stevie Awards for Sales & Customer Service. Stevie Awards competitions receive more than 12,000 entries each year from organizations in more than 70 nations. Honoring organizations of all types and sizes and the people behind them, the Stevies recognize outstanding performances in the workplace worldwide. Learn more about the Stevie Awards at http://www.StevieAwards.com.

CONTACT: Alison Raymond, araymond@ontinue.com 

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SOURCE Ontinue

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New Harris Poll and Ruth AI Study: 81% of Americans Would Let an AI Agent Handle Part of Their Job Search

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Nearly half would let AI negotiate their salary, while 76% have never heard that AI can provide biased career guidance

SAN FRANCISCO, July 23, 2026 /PRNewswire/ — Artificial intelligence has become a mainstream source of career and financial advice for American workers, according to a national survey of 2,131 U.S. adults conducted by The Harris Poll in collaboration with Ruth AI, the AI career strategist built for women.

The full study, The Trust Gap, is available at https://ruthapp.ai/research and has already drawn coverage from Fast Company.

Nearly half of Americans (45%) have used an AI platform such as ChatGPT, Claude, or Gemini for career or work-related advice. That rises to 66% of Millennials and 63% of Gen Z. One in three U.S. adults has used AI for advice about money at work, including salary, raises, bonuses, or negotiating pay.

Americans are also increasingly willing to let AI act on their behalf. Eighty-one percent would be comfortable having an AI agent handle at least one part of a job search, climbing to 90% of Millennials. A majority would let AI search for jobs (67%), conduct pre-interview research (67%), update their resume (65%), or apply for jobs outright (55%). Nearly half would let AI negotiate their benefits (49%) or salary (47%).

Yet awareness of the technology’s documented limitations remains low. Three in four Americans (76%) had never heard that independent research has found AI can produce biased career and salary guidance. Seventy-two percent agree that AI can sound confident even when its advice turns out to be wrong.

“Americans are handing AI some of the most consequential decisions of their working lives, from the job search to the salary ask, while most have never heard that the guidance can carry bias,” said Valerie Chapman, founder and CEO of Ruth AI. “We are delegating faster than we are asking questions. The responsibility now falls on the people building AI to earn the trust users are already giving it.”

About the Survey

The survey was conducted online within the United States by The Harris Poll from June 11-13, 2026, among a nationally representative sample of 2,131 U.S. adults, including 420 Gen Z adults, 620 Millennials, 519 Gen X adults, and 572 Baby Boomers. Data were weighted to the U.S. general adult population. Some questions were asked only of respondents who had used AI for the relevant purpose. References to research on biased AI guidance refer to external academic research (Sorokovikova, Chizhov, Eremenko & Yamshchikov, 2025; arXiv:2506.10491) and are not findings measured by this survey.

About The Harris Poll Thought Leadership Practice

Building on more than 60 years of experience pulsing societal opinion, The Harris Poll Thought Leadership Practice designs research that is credible, creative, and culturally relevant, driving thought leadership and uncovering trends for today’s biggest brands.

About Ruth AI

Ruth AI is an AI career strategist built for women, on a mission to close the $1.6 trillion gender wage gap. Based in San Francisco, Ruth AI is building a suite of AI agents that help women build personal brands, negotiate their worth, and launch their businesses. Learn more at https://ruthapp.ai.

Media Contact

Valerie Chapman
Founder and CEO, Ruth AI
419380@email4pr.com
786-375-1110

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SOURCE Ruth AI

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