While we experienced record quarterly revenues, the period is best described as a modest disappointment. Despite the record quarterly revenues, net income improved only at a marginal rate.
David Ingram, CEO, easyhome

easyhome Ltd. (TSX:EH) Canada's largest Rent-to-Own company reported that revenue increased $5.5 million to $39.8 million for the first quarter of 2008, up 16.0% from 2007. Same store revenues grew 9.0% building on 11.0% for the first quarter of 2007, and 13.5% in the fourth quarter 2007. Despite increased revenue, diluted earnings of $0.33 per share were flat compared to the same quarter last year.

Rent-A-Center (NASDAQ:RCII) reported Q1 2008 same store sales increased 2.8%. Aaron Rents (NYSE:RNT) reported 2.6% for the same quarter.

Potential monthly lease revenue increased to $11.0 million from $9.8 million at the end of March 2007, an improvement of 12.1%. This is the 26th consecutive quarter ter easyhome has reported positive same store sales. In addition the Company incurred an earnings drag on its U.S. Divisions of $0.2 million in the quarter (2007 - $0.1 million). Operating was $5.7 million compared to $5.6 million in the first quarter of 2007. Net income at $3.5 million, was 1.8% higher than the comparable period last year.

Commenting on the results, David Ingram said, "While we experienced record quarterly revenues, the period is best described as a modest disappointment. Despite the record quarterly revenues, net income improved only at a marginal rate. Our planned program to exit older electronic categories such as CRT TVs was partially responsible for a reduction in margins which lead to an increased lease amortization expense. This, combined with a slightly lower lease asset utilization rate, impacted the reported earnings by approximately $0.05. Management is addressing these changes by selective rate increases, inventory reductions and a disciplined liquidation of older technology items." Mr. Ingram added, "A total of six stores were opened in the quarter, split evenly between Canada and the U.S. We also added a financial services kiosk, bringing our total to eight, and we are delighted to report that the easyfinancial team made its first quarterly profit contribution."

Mr. Ingram concluded, "The calendar for the second quarter is slightly positive over the same period in 2007, which should benefit revenue by 1%-2%. As a result, the Company remains committed to our disclosed 2008 targets, requiring 28-32 new stores, annual revenue growth of 15%-17%, and same-store revenue growth of 5%-7%.

Donald K. Johnson, Chairman of the Board commented that, "During the first quarter, we announced a reorganization of our senior management team, combining Marketing and Operations and adding a new Head of Human Resources. We are now well positioned to take the Company to its next stage of growth through corporate store expansion in Canada and the U.S. and franchise stores in the U.S."

easyhome opened three Canadian corporate stores and three U.S. corporate stores in Q1.