"The second half of 2003 included the first two full quarters operating under the easyhome brand and they have been the most successful quarters in the Company's history"
David Ingram, easyhome's President & CEO

"Our Company is in its strongest financial position ever"
Donald K. Johnson, Chairman of the Board

easyhome Ltd. (EH.TO), formerly RTO Enterprises Inc., today announced record results for the fourth quarter and year ended December 31, 2003.

In the fourth quarter, the Company continued to achieve record revenue and operating income levels, surpassing the previous records set in the third quarter. Revenues for the fourth quarter were up 9.3 % from $18.9 million a year ago to $20.7 million, the highest quarterly revenue in the Company's 12 year history. Same store revenue growth was 7.7% for the quarter, beating the Company's 5.0% target and building on the 3.2% increase reported in the comparable period last year.

Operating income (EBIT) for the quarter was $2.4 million compared with $1.5 million during the same quarter last year, an increase of 60.4%. Income before taxes more than doubled to $2.0 million from $1.0 million a year earlier. Net income for the quarter increased 94.9% to $1.7 million or $0.30 per diluted share, compared with $851,000, or $0.18 per diluted share in the fiscal 2002 quarter. The impact of a change in the Province of Ontario's substantively enacted tax rates in the fourth quarter increased future tax assets and reduced the fourth quarter tax provision, as a percentage of income before taxes, by 18% and the year's tax provision by 8%, adding $0.06 diluted earnings per share.

For the year ending December 31, revenues were $78.7 million compared with $72.4 million in 2002, an increase of 8.7%. For the 12-month period same store revenue increased 5.9% improving on the 5.0% increase for the comparable period last year.

Operating income was up 31.5% from last year to $7.5 million. Income before taxes was $5.8 million, up from $3.7 million last year. Net income was $4.1 million compared with $2.6 million the previous year, an increase of 57.3%. Diluted earnings per share were $0.76 compared with $0.54 for 2002, an increase of 40.7%.

"The second half of 2003 included the first two full quarters operating under the easyhome brand and they have been the most successful quarters in the Company's history," said David Ingram, easyhome's President & CEO.

"We have achieved year over year revenue growth for nine successive quarters and continued the trend of improved income before income taxes that began 11 quarters ago. Since our single-brand transition, these growth trends have accelerated. Our operational leadership combined with our new national brand make us well poised to take advantage of improving demand and under-capacity that exists across Canada," said Mr. Ingram.

With the transition to the easyhome banner complete the Company shifted its focus to strategic expansion in the fourth quarter, opening three new stores in November. easyhome will continue its deliberate growth strategy designed to capitalize on the growth potential of the merchandise rental market through its plans to open 12 additional locations in 2004.

During the fourth quarter, easyhome Ltd. completed an equity offering of 1,633,000 common shares at $8.50 each for gross proceeds of $13.9 million. The proceeds were used to redeem all outstanding preferred shares and reduce the Company's line of credit, further reducing the Company's debt level and interest expense, resulting in a debt to equity ratio less than 10%.

"Our Company is in its strongest financial position ever," said Donald K. Johnson, Chairman of the Board of easyhome. "The management team has put all of the pieces in place to build value for our shareholders, integrating all of our stores under one brand and recapitalizing the Company to build a stronger, more stable company."

easyhome management held a conference call to discuss the fourth quarter and year-end results at 10:00 a.m. E.S.T. this morning. RTO Online will publish a summary of the call available at www.rtoonline.com. A link to the re-play of the webcast is available now from My RTO Portfolio.