Mr. Jason Mullins reports

GOEASY LTD. REPORTS RESULTS FOR THE FOURTH QUARTER AND FULL YEAR & ANNOUNCES INCREASE TO AUTOMOTIVE SECURITIZATION FACILITY

goeasy Ltd. has released results for the fourth quarter and full year ended Dec. 31, 2023, and has made a $125-million increase to its existing revolving securitization warehouse facility collateralized by automotive consumer loans from $375-million to $500-million, including a one-year term extension.

"The fourth quarter rounded out another record year for the company, in which we issued over $2.7-billion in loans to help non-prime Canadians meet their financial needs and enhance their lives," said Jason Mullins, goeasy's president and chief executive officer. "The benefits of scale and operating leverage have allowed us to continue reducing prices for borrowers while absorbing higher funding costs and delivering healthy returns. Over time, we have reduced the average rate of interest we charge our customers while serving over 1.3 million Canadians and helping over 200,000 graduate back to prime so far."

Mr. Mullins continued: "We are proud of the work we do to serve the over nine million non-prime Canadians that have limited borrowing options and are excited to introduce our new outlook, which includes scaling the loan portfolio to approximately $6-billion by the end of 2026. We are truly just getting started."

Key fourth quarter highlights

easyfinancial:

• Record revenue of $299-million, up 27 per cent;
• 42 per cent of the loan portfolio secured, up from 39 per cent;
• Record volume of applications for credit, up 29 per cent;
• New customer volume at 40,300, up 15 per cent;
• 67 per cent of net loan advances in the quarter were issued to new customers, up from 66 per cent;
• Record volume of originations in automotive financing;
• Average loan book per branch improved to a record $5.7-million, an increase of 18 per cent;
• Weighted-average interest rate on consumer loans of 30.3 per cent, down slightly from 30.5 per cent;
• Record operating income of $150-million, up 41 per cent.

easyhome:

• Revenue of $38.6-million, up 3 per cent;
• Consumer loan portfolio within easyhome stores increased to $106.3-million, up 20 per cent;
• Financial revenue from consumer lending increased to $12.4-million, up 16 per cent;
• Operating income of $9.4-million, up 8 per cent.

Over all:

• 90th consecutive quarter of positive net income;
• 2024 marks the 20th consecutive year of paying dividends and the 10th consecutive year of a dividend increase;
• 55th consecutive quarter of same-store revenue growth;
• Total customers served over 1.3 million;
• Acquired and organically originated over $12.8-billion in loans;
• Adjusted return on equity of 26.7 per cent, up from 24.6 per cent;
• Adjusted return on tangible common equity of 35.3 per cent, consistent with 35.9 per cent;
• Fully drawn weighted-average cost of borrowing at 6.9 per cent, up from 5.5 per cent;
• Net debt to net capitalization of 72 per cent on Dec. 31, 2023, in line with the company's target leverage profile.

Future outlook

The company has provided a new three-year forecast for the years 2024 through 2026. The periods of 2024 and 2025 have been updated to reflect the most recent outlook and assume that the previously announced new legislation to reduce the maximum allowable rate of interest to an annual percentage rate of 35 per cent becomes effective midyear 2024 although the enforcement date has yet to be announced. Furthermore, the company employs the use of probability weighted third party economic forecasts to establish its economic outlook. Based on those forecasts, the company assumes 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 herein 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.

Dividend

Based on its 2023 adjusted earnings and the company's confidence in its continued growth and access to capital going forward, the board of directors has approved an increase to the annual dividend from $3.84 per share to $4.68 per share, an increase of 22 per cent. This year marks the 10th consecutive year of an increase in the dividend to shareholders. As such, the board of directors has approved a quarterly dividend of $1.17 per share payable on April 12, 2024, to the holders of common shares of record as at the close of business on March 29, 2024.

About goeasy Ltd.

goeasy is a Canadian company, headquartered in Mississauga, Ont., that provides non-prime leasing and lending services through its easyhome, easyfinancial and LendCare brands. Supported by over 2,400 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 omnichannel model that includes on-line and mobile platforms, over 400 locations across Canada, and point-of-sale financing offered in the retail, powersports, automotive, home improvement and health care verticals, through over 9,500 merchant partners across Canada. Throughout the company's history, it has acquired and organically served over 1.3 million Canadians and originated over $12.8-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 2023 best workplaces in financial services and 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, and 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 78 nationalities who believe strongly in giving back to communities in which it operates. To date, goeasy has raised and donated over $5.5-million to support its long-standing partnerships with BGC Canada and many other local charities. In 2023, the company announced a three-year $1.4-million commitment to BGC Canada's Food Fund to help address the rising issue of food insecurity amongst Canadian households.

goeasy's common shares are listed on the Toronto Stock Exchange under the trading symbol GSY. goeasy is rated BB minus with a stable trend from S&P and Ba3 with a stable trend from Moody's.

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