GlobeNewswire Inc | Feb 17, 2021 05:01PM EST

February 17, 2021

Loan Portfolio of $1.25 billion, up 12%Adjusted Quarterly Diluted Earnings per Share of $2.24, up 55%Adjusted Annual Net Income of $118 million, up 47%Adjusted Annual Diluted Earnings per Share of $7.57, up 46%Annual Dividend per Share Increased to $2.64, up 47%

MISSISSAUGA, Ontario, Feb. 17, 2021 (GLOBE NEWSWIRE) -- goeasy Ltd. (TSX: GSY), (goeasy or the Company), a leading full-service provider of goods and alternative financial services, announced its results for the fourth quarter and full year ended December 31, 2020.

Fourth Quarter Results

The Company continued to experience an improving level of loan originations, complemented by strong credit performance, leading to record financial results.

During the quarter, the Company generated a record $334 million in total loan originations, up 7% compared to the $314 million produced in the fourth quarter of 2019. The improved originations led to growth in the loan portfolio of $64 million during the quarter, which finished at $1.25 billion, up 12% from $1.11 billion as of December 31, 2019. The growth in the consumer loan portfolio, combined with a decline in claims paid under the Companys loan protection plan, led to an increase in revenue, which was a record $173 million in the quarter, up 5% over the same period in 2019.

During the quarter, the Company also continued to experience strong credit and payment performance. The net charge-off rate for the fourth quarter was 9.0%, compared to 13.3% in the fourth quarter of 2019. Although the Company has experienced an overall improvement in the underlying credit performance of its consumer loan portfolio, the exact timing and pace of an economic recovery remains uncertain. As such, the Company held its allowance for future credit losses broadly flat at 10.08%, versus 10.03% in the third quarter.

Improved operating leverage and lower credit losses, led to record operating income of $61.3 million, up 32% from $46.5 million in the fourth quarter of 2019, while the operating margin expanded to 35.4%, up from 28.1% in the prior year. During the quarter, the Company recorded an additional $13.9 million after-tax unrealized fair value gain related to the sale of its minority equity investment in PayBright, in connection with the previously announced sale of its shares of PayBright to Affirm Holdings Inc. (Affirm).

Net income in the fourth quarter was a record $48.9 million, up from $6.7 million in the same period of 2019, which resulted in diluted earnings per share of $3.14, up from $0.46 in the fourth quarter of 2019. Return on equity was 45.8%, up from 8% in the fourth quarter of 2019. After adjusting for a $13.9 million after-tax unrealized fair value gain recorded in the fourth quarter of 2020 related to the sale of the Companys minority equity investment in PayBright and adjusting for the one-time $16 million after-tax charge associated with the refinancing of the Companys notes payable completed in the fourth quarter of 2019, adjusted net income was a record $35.0 million, up 55% from $22.6 million in 2019, resulting in adjusted diluted earnings per share of $2.24, up 55% from $1.45 in the fourth quarter of 2019. Adjusted return on equity was 32.8% in the quarter, up from adjusted return on equity of 27.0% in 2019.

It was a strong finish to 2020, in a year that highlighted the resilience of our customer, our team and our business model. Loan originations during the quarter lifted above prior year levels, leading to $64 million of loan growth, while credit performance improved to a net charge off rate of 9.0%, down from 13.3% in the prior year, said Jason Mullins, goeasys President and Chief Executive Officer, We were also pleased to complete the sale of our minority equity interest in PayBright at a meaningful return to our shareholders, while concurrently becoming investors in Affirm and continuing our leading point-of-sale financing partnership. Lastly, we implemented a new securitization facility that lifted our total liquidity at year end to $403 million and reduced our fully drawn weighted average cost of borrowing from 5.5% to 4.8%. After normalizing for the one-time adjustments to each period, adjusted diluted earnings per share for the full year was $7.57, an increase of 46% versus the $5.17 in 2019. As a result, the Board of Directors have approved a 47% increase in the annual dividend from $1.80 to $2.64 per share in 2021.

Other Key Fourth Quarter Highlights

easyfinancial

-- Record revenue of $137 million, up 5% -- Secured loan portfolio grew to $155 million, up 34%, -- 51% of net loan advances in the quarter were issued to new customers, down from 62% -- 51% of applications were acquired online, up slightly from 50% -- Average loan book per branch improved to $3.8 million, an increase of 4% -- The delinquency rate on the final Saturday of the quarter was 5.1%, flat to 5.1% -- Record operating income of $67.2 million, up 26% -- Operating margin of 49.2%, up from 41%

easyhome

-- Record revenue of $36.7 million, up 3% -- Same store revenue growth of 4.4% -- Consumer loan portfolio within easyhome stores increased to $50.3 million, up 32% -- Revenue from consumer lending increased to $6.2 million, up 22% -- Record operating income of $8.6 million, up 32% -- Record operating margin of 23.6%, up from 18.3%

Overall

-- 43rd consecutive quarter of same store sales growth -- 78th consecutive quarter of positive net income -- 2021 will mark the 17th consecutive year of paying dividends and 7th consecutive year of dividend increases -- Total same store revenue growth of 4.2% -- $50.3 million in loan protection claims payments, up 155% from $19.7 million in 2019 -- Adjusted return on equity of 32.8% in the quarter, up from 27% -- Fully drawn weighted average cost of borrowing reduced to 4.8%, down from 5.5% -- Net external debt to net capitalization of 64% on December 31, 2020, down from 71% in the prior year and below the Companys target leverage ratio of 70% -- 79,860 common shares repurchased during the quarter at a weighted average price of $68.44, through the Companys NCIB, bringing total share repurchases in 2020 to 767,855 at a weighted average price of $55.18 -- No reduction of personnel during COVID-19 and a decline in employee turnover of almost 10% -- Annual employee engagement score improved to record level of 83%, up 2% over the prior year

Full Year Results

For the full year of 2020, the Company funded $1.03 billion in loan originations, down slightly from $1.10 billion in 2019. The consumer loan portfolio grew to $1.25 billion, up 12% from $1.11 billion as of December 31, 2019. Revenue for the full year, which was partially impacted by lower commissions on ancillary products primarily related to higher levels of loan protection insurance claims, was $653 million, up 7% compared with $609 million in the same period of 2019. Operating income for the full year was $216 million compared with $169 million in 2019, an increase of $47.6 million or 28%. Net income for the full year of 2020 was $137 million and diluted earnings per share was $8.76 compared with $64.3 million or $4.17 per share, increases of 112% and 110% respectively.

After adjusting for a $18.9 million after-tax unrealized fair value gain recorded in 2020 related to the sale of the Companys minority equity investment in PayBright and adjusting for the one-time $16 million after-tax charge associated with the refinancing of the Companys notes payable completed in 2019, adjusted net income for the full year of 2020 was $118 million and adjusted diluted earnings per share was $7.57, increases of 47% and 46% compared to the adjusted net income of $80.3 million and adjusted diluted earnings per share of $5.17 in 2019.

Balance Sheet and Liquidity

Total assets were $1.50 billion as of December 31, 2020, an increase of 14% from $1.32 billion as of December 31, 2019, driven by the growth in the consumer loan portfolio and return on the Companys investment in PayBright.

During the quarter, the Company completed the establishment of a new $200 million revolving securitization warehouse facility, structured and underwritten by National Bank Financial Markets. The securitization facility, which will be collateralized by consumer loans originated by goeasys wholly owned subsidiary, easyfinancial Services Inc., will have an initial term of three years and interest on advances will be payable at the rate of 1-month CDOR (Canadian Dollar Offered Rate) plus 295 bps. The Company also intends to establish an interest rate swap agreement on draws from the facility to generate fixed rate payments and mitigate the impact of interest rate volatility.

In September 2019, the Company invested $34.3 million to acquire a minority equity interest in PayBright. On December 3, 2020, PayBright announced that the shareholders of PayBright had reached a definitive agreement to sell 100% of the PayBright shares to Affirm, including the Companys minority equity interest in PayBright. The sale transaction closed on January 1, 2021. Under the terms of the sale transaction, the Company received consideration of C$23 million in cash, 655,416 common shares in Affirm and 468,154 common shares of Affirm held in escrow, subject to revenue performance achieved in 2021 and 2022. After considering the likelihood of achieving the contingent equity, a total consideration of $56 million was recognized. The fair value of investment in PayBright as at December 31, 2020 equivalent to $56 million was determined based on the sale transaction. For the full year-ended December 31, 2020, the Company recognized an unrealized fair value gain amounting to $21.7 million ($18.9 million after-tax) in the consolidated statement of income.

Subsequent to quarter-end, the Company entered into a 6-month total return swap agreement (the "TRS") to substantively hedge its market exposure related to its 655,416 common shares held in Affirm, which represents the non-contingent portion of the equity consideration received, pursuant to the sale of its investment in PayBright. The TRS effectively results in the economic value of the Companys investment in Affirm shares being settled in cash at maturity for US$108.87 per share, net of applicable fees.

Cash provided by operating activities before net growth in gross consumer loans receivable and purchase of lease assets was $41 million during the quarter and $211 million during the full year of 2020, an increase of 89% and 74% respectively. Based on the cash on hand at the end of the quarter and the borrowing capacity under the Companys revolving credit facilities, goeasy had approximately $403 million in total funding capacity, which it estimates is sufficient to fund its organic growth through the third quarter of 2023. At year-end, the Companys fully drawn weighted average cost of borrowing reduced to 4.8%, down from 5.5% in the prior year, with incremental draws on its senior secured revolving credit facility bearing a rate of approximately 3.6% and incremental draws on its revolving securitization warehouse facility bearing a rate of approximately 3.4%.

The Company also estimates that once its existing and available sources of capital are fully utilized, it could continue to grow the loan portfolio by approximately $150 million per year solely from internal cash flows. The Company also estimates that as of December 31, 2020, if it were to run-off its consumer loan and consumer leasing portfolios, the value of the total cash repayments paid to the Company over the remaining life of its contracts would be approximately $2.2 billion. If during such a run-off scenario all excess cash flows were applied directly to debt, the Company estimates it would extinguish all external debt within 17 months.

Future Outlook

The Company has provided a new 3-year forecast for the years 2021 through 2023. The periods of 2021 and 2022 have been updated to reflect the most recent outlook. 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 offers, which increase the average loan size and extend the life of its customer relationships. As such, the total yield earned on its consumer loan portfolio will gradually decline, while net charge-off rates moderate and operating margins expand. The forecasts outlined below contemplate the Companys expected domestic organic growth plan and do not include the impact of any mergers or acquisitions, or the associated gains or losses associated with its investments.

2021 2022 2023 Forecast Forecast ForecastGross Loan Receivable Portfolio at Year End $1.45B - $1.65B - $1.9B - $1.55B $1.85B $2.1BNew easyfinancial locations 20 - 25 15 - 20 10 - 15easyfinancial Total Revenue Yield 44% - 46% 42% - 44% 41% - 43%Total Revenue Growth 12.5% - 11% - 13% 10.5% - 14.5% 12.5%Net charge-off Rate (Average Receivables) 10.5% - 10.5% - 10.5% - 12.5% 12.5% 12.5%Total Company Operating Margin 30% - 33% 31% - 34% 32% - 35%Return on Equity 25%+ 25%+ 25%+ $180 $190 $230Cash Provided by Operating Activities before Net million million millionGrowth in Gross Consumer Loans Receivable - $220 - $230 - $270 million million millionNet Debt to Total Capitalization 63% - 65% 62% - 64% 60% - 62%

We continue to see positive trends in the business and remain confident in navigating through a second wave of the pandemic. Looking forward, we are well positioned to capture the demand for consumer credit that will be fueled by an economic recovery. Our updated three-year forecast reflects growing our consumer loan portfolio to approximately $2 billion by the end of 2023, with stable credit performance, expanding margins and declining leverage, Mr. Mullins concluded, Our strategy to expand the product range, develop our channels of distribution, increase our geographic footprint and deliver a best-in-class customer experience, will enable us to become the leading consumer lender for the 9 million Canadians with non-prime credit. I want to thank all 2,000 goeasy team members for their unwavering commitment to stand by our customers during such a challenging year. With a well-capitalized balance sheet and award-winning culture, we are just getting started on our journey to providing everyday Canadians with a path to a better tomorrow.

Dividend

Based on its 2020 adjusted earnings and the Companys confidence in its continued growth and access to capital going forward, the Board of Directors has approved an increase to the annual dividend from$1.80per share to$2.64 per share, an increase of 47%. This year marks the 7thconsecutive year of an increase in the dividend to shareholders. As such, the Board of Directors has approved a quarterly dividend of$0.66per share payable onApril 9, 2021to the holders of common shares of record as at the close of business onMarch 26, 2021.

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, expected financial performance and condition, 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 are 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 Companys operations, economic factors and the industry generally, as well as those factors referred to in the Companys most recent Annual Information Form and Management Discussion and Analysis, as available on www.sedar.com, 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 Companys ability to enter into new lease and/or financing agreements, collect on existing lease and/or financing agreements, open new locations on favourable terms, 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 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., a Canadian company, headquartered inMississauga, Ontario, provides non-prime leasing and lending services through its easyhome and easyfinancial divisions. With a wide variety of financial products and services including unsecured and secured instalment loans, goeasy aspires to help put Canadians on a path to a better financial future, as they rebuild their credit and graduate to prime lending. Customers can transact seamlessly with easyhome and easyfinancial through an omni-channel model that includes online and mobile, as well as over 400 leasing and lending locations acrossCanadasupported by more than 2,000 employees. Throughout the companys history, it has served over 1 million Canadians and originated $5.0 billionin loans, with one in three customers graduating to prime credit and 60% increasing their credit score within 12 months of borrowing.

goeasy is the proud recipient of several awards including Waterstone Canadas Most Admired Corporate Cultures, Glassdoor Top CEO Award, Achievers Top 50 Most Engaged Workplaces inNorth America, Greater Toronto Top Employers Award, the Digital Finance Institutes Canadas Top 50 FinTech Companies, ranking on the TSX30 and placing on the Report on Business ranking of Canadas Top Growing Companies. The company and its employees believe strongly in giving back to the communities in which it operates and has raised over$3.5 millionto support its long-standing partnerships with theBoys & Girls Clubs of CanadaandHabitat for Humanity.

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 Moodys. Visitwww.goeasy.com.

For further information contact:

Jason MullinsPresident & Chief Executive Officer(905) 272-2788

Farhan Ali KhanSenior Vice President, Corporate Development & Investor Relations(905) 272-2788

goeasy Ltd. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (expressed in thousands of Canadian dollars) As At As At December 31, December 31, 2020 2019 ASSETS Cash 93,053 46,341 Amounts receivable 9,779 18,482 Prepaid expenses 13,005 7,077 Consumer loans receivable, net 1,152,378 1,040,552 Investment 56,040 34,300 Lease assets 49,384 48,696 Property and equipment, net 31,322 23,007 Deferred tax assets 4,066 14,961 Intangible assets, net 25,244 17,749 Right-of-use assets, net 46,335 46,147 Goodwill 21,310 21,310 TOTAL ASSETS 1,501,916 1,318,622 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Revolving credit facility 198,339 112,563 Accounts payable and accrued liabilities 46,065 41,350 Income taxes payable 13,897 4,187 Dividends payable 6,661 4,448 Unearned revenue 10,622 8,082 Derivative financial liabilities 36,910 16,435 Lease liabilities 53,902 52,573 Accrued interest 2,598 4,358 Convertible debentures - 40,656 Notes payable 689,410 701,549 TOTAL LIABILITIES 1,058,404 986,201 Shareholders' equity Share capital 181,753 141,956 Contributed surplus 19,732 20,296 Accumulated other comprehensive loss (5,280 ) (915 )Retained earnings 247,307 171,084 TOTAL SHAREHOLDERS' EQUITY 443,512 332,421 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 1,501,916 1,318,622

goeasy Ltd. CONSOLIDATED STATEMENTS OF INCOME (expressed in thousands of Canadian dollars except earnings per share) Three Months Ended Year Ended December December December December 31, 31, 31, 31, 2020 2019 2020 2019 REVENUE Interest income 106,784 96,403 409,583 345,997 Lease revenue 28,564 28,268 112,796 113,236 Commissions earned 34,747 37,169 117,913 135,510 Charges and fees 3,124 3,696 12,630 14,640 173,219 165,536 652,922 609,383 EXPENSES BEFORE DEPRECIATION AND AMORTIZATIONSalaries and benefits 34,023 31,166 136,306 120,414 Stock-based compensation 1,988 2,858 7,575 8,686 Advertising and promotion 8,591 7,488 26,786 26,699 Bad debts 34,493 43,257 134,998 156,742 Occupancy 5,375 5,484 22,501 20,573 Technology costs 3,692 3,222 14,191 12,293 Other expenses 7,028 9,315 29,406 30,819 95,190 102,790 371,763 376,226 DEPRECIATION AND AMORTIZATION Depreciation of lease assets 8,980 9,351 35,770 37,402 Depreciation of right-of-use assets 4,189 3,933 16,183 15,199 Depreciation of property and 1,509 1,624 5,997 6,281 equipmentAmortization of intangible assets 2,074 1,355 6,773 5,482 16,752 16,263 64,723 64,364 TOTAL OPERATING EXPENSES 111,942 119,053 436,486 440,590 OPERATING INCOME 61,277 46,483 216,436 168,793 OTHER INCOME Unrealized fair value gain on 16,040 - 21,740 - investment FINANCE COSTS Interest expense and amortization of 12,624 14,744 52,248 55,094 deferred financing chargesInterest expense on lease 719 656 2,744 2,464 liabilitiesRefinancing cost relating to notes - 21,723 - 21,723 payable 13,343 37,123 54,992 79,281 INCOME BEFORE INCOME TAXES 63,974 9,360 183,184 89,512 INCOME TAX EXPENSE (RECOVERY) Current 9,753 5,812 33,041 27,763 Deferred 5,310 (3,135 ) 13,638 (2,600 ) 15,063 2,677 46,679 25,163 NET INCOME 48,911 6,683 136,505 64,349 BASIC EARNINGS PER SHARE 3.24 0.46 9.21 4.40 DILUTED EARNINGS PER SHARE 3.14 0.46 8.76 4.17

Segmented Reporting Three Months Ended December 31, 2020 ($ in 000's except earnings per easyfinancial easyhome Corporate Total share) Revenue Interest income 101,967 4,817 - 106,784 Lease revenue - 28,564 - 28,564 Commissions earned 32,461 2,286 - 34,747 Charges and fees 2,095 1,029 - 3,124 136,523 36,696 - 173,219 Total operating expenses before depreciation and 65,053 16,833 13,304 95,190 amortization Depreciation and amortization Depreciation and amortization of lease assets, property and 2,181 9,306 1,076 12,563 equipment and intangible assets Depreciation of right-of-use 2,062 1,894 233 4,189 assets 4,243 11,200 1,309 16,752 Segment operating income (loss) 67,227 8,663 (14,613 ) 61,277 Other income Unrealized fair value gain 16,040 on investment Finance costs Interest expense and amortization of deferred 12,624 financing charges Interest expense on lease 719 liabilities 13,343 Income before income taxes 63,974 Income taxes 15,063 Net Income 48,911 Diluted earnings per share 3.14 Three Months Ended December 31, 2019 ($ in 000's except earnings per easyfinancial easyhome Corporate Total share) Revenue Interest income 92,803 3,600 - 96,403 Lease revenue - 28,268 - 28,268 Commissions earned 34,777 2,392 - 37,169 Charges and fees 2,425 1,271 - 3,696 130,005 35,531 - 165,536 Total operating expenses before depreciation and 73,062 17,309 12,419 102,790 amortization Depreciation and amortization Depreciation and amortization of lease assets, property and 1,805 9,757 768 12,330 equipment and intangible assets Depreciation of 1,793 1,965 175 3,933 right-of-use-assets 3,598 11,722 943 16,263 Segment operating income (loss) 53,345 6,500 (13,362 ) 46,483 Finance costs Interest expense and amortization of deferred 14,744 financing charges Interest expense on lease 656 liabilities Refinancing cost relating to 21,723 notes payable 37,123 Income before income taxes 9,360 Income taxes 2,677 Net Income 6,683 Diluted earnings per share 0.46 Year Ended December 31, 2020 ($ in 000's except earnings per easyfinancial easyhome Corporate Total share) Revenue Interest income 392,450 17,133 - 409,583 Lease revenue - 112,796 - 112,796 Commissions earned 109,246 8,667 - 117,913 Charges and fees 8,208 4,422 - 12,630 509,904 143,018 - 652,922 Total operating expenses before depreciation and 251,897 67,261 52,605 371,763 amortization Depreciation and amortization Depreciation and amortization of lease assets, property and 7,665 37,209 3,666 48,540 equipment and intangible assets Depreciation of right-of-use 7,753 7,489 941 16,183 assets 15,418 44,698 4,607 64,723 Segment operating income (loss) 242,589 31,059 (57,212 ) 216,436 Other income Unrealized fair value gain 21,740 on investment Finance costs Interest expense and amortization of deferred 52,248 financing charges Interest expense on lease 2,744 liabilities 54,992 Income before income taxes 183,184 Income taxes 46,679 Net Income 136,505 Diluted earnings per share 8.76 Year Ended December 31, 2019 ($ in 000's except earnings per easyfinancial easyhome Corporate Total share) Revenue Interest income 334,124 11,873 - 345,997 Lease revenue - 113,236 - 113,236 Commissions earned 126,806 8,704 - 135,510 Charges and fees 9,278 5,362 - 14,640 470,208 139,175 - 609,383 Total operating expenses before depreciation and 267,356 67,253 41,617 376,226 amortization Depreciation and amortization Depreciation and amortization of lease assets, property and 7,194 39,140 2,831 49,165 equipment and intangible assets Depreciation of 6,521 7,943 735 15,199 right-of-use-assets 13,715 47,083 3,566 64,364 Segment operating income (loss) 189,137 24,839 (45,183 ) 168,793 Finance costs Interest expense and amortization of deferred 55,094 financing charges Interest expense on lease 2,464 liabilities Refinancing cost relating to 21,723 notes payable 79,281 Income before income taxes 89,512 Income taxes 25,163 Net Income 64,349 Diluted earnings per share 4.17

Summary of Financial Results and Key Performance Indicators ($ in 000?s except earnings per Three Months Ended Variance Variance share and percentages) December December $ / bps % change 31, 2020 31, 2019Summary Financial Results Revenue 173,219 165,536 7,683 4.6 % Operating expenses before 95,190 102,790 (7,600 ) (7.4 %) depreciation and amortizationEBITDA 85,089 53,395 31,694 59.4 % EBITDA margin 49.1 % 32.3 % 1,680 bps 52.0 % Depreciation and amortization 16,752 16,263 489 3.0 % expenseOperating income 61,277 46,483 14,794 31.8 % Operating margin 35.4 % 28.1 % 730 bps 26.0 % Other income^1 16,040 - 16,040 100.0 % Interest expense andamortization of deferred 13,343 15,400 (2,057 ) (13.4 %) financing charges and interestexpense on lease liabilitiesRefinancing costs^2 - 21,723 (21,723 ) (100.0 %) Effective income tax rate 23.5 % 28.6 % (510 bps) (17.8 %) Net income 48,911 6,683 42,228 631.9 % Diluted earnings per share 3.14 0.46 2.68 582.6 % Return on equity 45.8 % 8.0 % 3,780 bps 472.5 % Adjusted (Normalized) Financial Results^1,2Adjusted EBITDA 69,049 53,395 15,654 29.3 % Adjusted EDITDA margin 39.9 % 32.3 % 760 bps 23.5 % Adjusted net income 34,996 22,649 12,347 54.5 % Adjusted diluted earnings per 2.24 1.45 0.79 54.5 % shareAdjusted return on equity 32.8 % 27.0 % 580 bps 21.5 % Key Performance Indicators Same store revenue growth 4.2 % 19.7 % (1,550 (78.7 %) (overall) bps)Same store revenue growth 4.4 % 6.2 % (180 bps) (29.0 %) (easyhome) Segment Financials easyfinancial revenue 136,523 130,005 6,518 5.0 % easyfinancial operating margin 49.2 % 41.0 % 820 bps 20.0 % easyhome revenue 36,696 35,531 1,165 3.3 % easyhome operating margin 23.6 % 18.3 % 530 bps 29.0 % Portfolio Indicators Gross consumer loans receivable 1,246,840 1,110,633 136,207 12.3 % Growth in consumer loans 64,039 75,037 (10,998 ) (14.7 %) receivableGross loan originations 334,102 313,514 20,588 6.6 % Total yield on consumer loans 46.6 % 49.8 % (320 bps) (6.4 %) (including ancillary products)Net charge-offs as a percentageof average gross consumer loans 9.0 % 13.3 % (430 bps) (32.3 %) receivableCash provided by operatingactivities before net growth in 40,980 21,703 19,277 88.8 % gross consumer loans receivablePotential monthly lease revenue 8,461 8,643 (182 ) (2.1 %) ^1During the fourth quarter of 2020, the Company recognized $13.9 millionafter-tax impact of the unrealized fair value gain in the PayBright investment.^2During the fourth quarter of 2019, the Company repaid its 2022Notes incurring a $16.0 million after-tax impact of refinancing cost. ($ in 000?s except earnings per Year Ended Variance Variance share and percentages) December December $ / bps % change 31, 2020 31, 2019Summary Financial Results Revenue 652,922 609,383 43,539 7.1 % Operating expenses before 371,763 376,226 (4,463 ) (1.2 %) depreciation and amortizationEBITDA 267,129 195,755 71,374 36.5 % EBITDA margin 40.9 % 32.1 % 880 bps 27.4 % Depreciation and amortization 64,723 64,364 359 0.6 % expenseOperating income 216,436 168,793 47,643 28.2 % Operating margin 33.1 % 27.7 % 540 bps 19.5 % Other income^1 21,740 - 21,740 100.0 % Interest expense andamortization of deferred 54,992 57,558 (2,566 ) (4.5 %) financing charges and interestexpense on lease liabilitiesRefinancing costs^2 - 21,723 (21,723 ) (100.0 %) Effective income tax rate 25.5 % 28.1 % (260 bps) (9.3 %) Net income 136,505 64,349 72,156 112.1 % Diluted earnings per share 8.76 4.17 4.59 110.1 % Return on equity 36.1 % 20.2 % 1,590 bps 78.7 % Adjusted (Normalized) Financial Results^1,2Adjusted EBITDA 245,389 195,755 49,634 25.4 % Adjusted EBITDA margin 37.6 % 32.1 % 550 bps 17.1 % Adjusted net income 117,646 80,315 37,331 46.5 % Adjusted diluted earnings per 7.57 5.17 2.40 46.4 % shareAdjusted return on equity 31.1 % 25.3 % 580 bps 22.9 % Key Performance Indicators Same store revenue growth 6.3 % 19.5 % (1,320 (67.7 %) (overall) bps)Same store revenue growth 4.5 % 4.3 % 20 bps 4.7 % (easyhome) Segment Financials easyfinancial revenue 509,904 470,208 39,696 8.4 % easyfinancial operating margin 47.6 % 40.2 % 740 bps 18.4 % easyhome revenue 143,018 139,175 3,843 2.8 % easyhome operating margin 21.7 % 17.8 % 390 bps 21.9 % Portfolio Indicators Gross consumer loans receivable 1,246,840 1,110,633 136,207 12.3 % Growth in consumer loans 136,207 276,854 (140,647 ) (50.8 %) receivableGross loan originations 1,033,130 1,095,375 (62,245 ) (5.7 %) Total yield on consumer loans 45.5 % 50.1 % (460 bps) (9.2 %) (including ancillary products)Net charge-offs as a percentageof average gross consumer loans 10.0 % 13.3 % (330 bps) (24.8 %) receivableCash provided by operatingactivities before net growth in 210,619 120,985 89,634 74.1 % gross consumer loans receivablePotential monthly lease revenue 8,461 8,643 (182 ) (2.1 %) ^1For the year-ended December 31, 2020, the Company recognized $18.9 millionafter-tax impact of the unrealized fair value gain in the PayBright investment.^2For the year-ended December 31, 2019, the Company repaid its 2022Notes incurring a $16.0 million after-tax impact of refinancing cost.