easyhome Ltd. Completes an Exchange of Stores

easyhome Ltd. Completes an Exchange of Stores 
MISSISSAUGA, ONTARIO -- (Marketwire) -- 01/02/13 -- easyhome Ltd.
(TSX:EH) (the "Company" or "easyhome"), Canada's largest merchandise
leasing company and a growing provider of financial services, is
pleased to announce an exchange of stores with Rent-A-Center, Inc., a
U.S. based merchandise leasing company (the "Transaction"). The
Transaction, which closed on December 31, 2012, consisted of the
concurrent sale of the assets and operations of 15 leasing stores
owned by easyhome in the United States and the purchase of the assets
and operations of 15 leasing stores in Canada owned by Rent-A-Centre
Canada, Ltd. 
The Transaction is consistent with easyhome's strategic goal of
improving the profitability of its leasing business. It builds upon
the positive results arising from the restructuring and store
rationalization that occurred in the second quarter of 2012.
Management of easyhome believes that these activities, when combined
with the recent successes in increasing deliveries and growing the
leasing portfolio, should positively impact performance for 2013. 
The first component of the exchange involved the sale of 15 leasing
stores, all located in the State of New York. After the close of the
Transaction, easyhome no longer operates any corporately owned
locations outside of Canada. 
"The journey to scale and acceptable returns with our corporately
owned stores will take too long," said David Ingram, easyhome's
President & CEO. "Our U.S. franchise business combined with our
unique Be-A-Contender program has demonstrated its ability to stand
out and succeed in a competitive market. With the sale of our
corporately owned stores in the U.S., we can now focus all of our U.S
expansion efforts through our franchise business." 
The second component of the exchange involved the purchase of the
assets and operations of 15 Rent-A-Centre Canada, Ltd. leasing stores
located across Canada. 
Since most of the acquired stores are located in markets already
served by easyhome, there is an opportunity to gain greater
efficiencies by merging the newly acquired stores with existing
stores into a single location. This will be accomplished over the
next several weeks while minimizing the impact on the affected
customers. After this consolid
ation is completed, the Company
anticipates increasing its total number of Canadian locations by 4
stores. 
"We are excited by the opportunity to acquire additional operations
in Canada," continued Mr. Ingram. "The acquired locations provide us
with a large portfolio of assets and customer agreements. We will
work hard to welcome these customers to easyhome and provide them
with the excellent level of service that they expect and deserve. The
proximity of many of these new locations to our existing stores also
provides us with an opportunity to gain further efficiencies leading
to better overall results." 
Since the Transaction represented an exchange of similar portfolios,
no significant net cash consideration was exchanged and the Company
does not expect any material impact to its balance sheet. The sale of
the U.S. corporate stores is expected to enhance the overall
profitability of the Company's U.S. operations and allow it to more
quickly utilize the cumulative tax losses which have been carried
forward to apply against future earnings. Overall, the Company
expects that the sale of the U.S. corporate stores, together with the
increased revenues from the expanded Canadian operations, will be
slightly accretive to earnings in 2013. 
About easyhome 
As of December 31st, easyhome Ltd. operated 206 easyhome leasing
stores (including 10 consolidated franchise locations), 103
easyfinancial locations and had 48 franchise locations. 
easyhome Ltd. is Canada's largest merchandise leasing Company and the
third largest in North America, offering top quality, brand-name
household furnishings, appliances and home electronic products to
consumers under weekly or monthly leasing agreements through both
corporate and franchise stores. In addition, the Company offers a
variety of financial services, including loans and prepaid cards,
through its easyfinancial Services business. easyhome Ltd. is listed
on the TSX under the symbol 'EH'. For more information, visit
www.easyhome.ca. 
Forward-Looking Statements 
This news release includes forward-looking statements about easyhome
Ltd., including its business operations, strategy and expected
financial performance and condition. Forward-looking statements
include statements that are predictive in nature, depend upon or
refer to future events or conditions, or include words such as
'expects', 'anticipates', 'intends', 'plans', 'believes' or negative
versions thereof and similar expressions. In addition, any statement
that may be made concerning future financial performance (including
revenue, earnings or growth rates), ongoing business strategies or
prospects about future events is also a forward-looking statement.
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 our operations, economic
factors and the industry generally. They are not guarantees of future
performance, and actual events and results could differ materially
from those expressed or implied by forward-looking statements made by
us, due to, but not limited to important factors such as our ability
to enter into new lease and/or financing agreements, collect on
existing lease and/or financing agreements, open new locations on
favourable terms, secure new franchised locations, purchase products
which appeal to our customers at a competitive rate, cope with
changes in legislation, react to uncertainties related to regulatory
actions, 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 our system of
internal controls. We caution that the foregoing list is not
exhaustive. The reader is cautioned to consider these and other
factors carefully and not place undue reliance on forward-looking
statements, which may not be appropriate for other purposes. We are
under no obligation (and expressly disclaim any such obligation) to
update or alter the forward-looking statements whether as a result of
new information, future events or otherwise, unless otherwise
required by law.
Contacts:
easyhome Ltd.
David Ingram
President & Chief Executive Officer
(905) 272-2788 
easyhome Ltd.
Steve Goertz
Senior Vice President and Chief Financial Officer
(905) 272-2788
www.easyhome.ca
 
 
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