Goeasy Finance does it again-another great quarter

           GoEasy Finance just released it's latest quarterly results.GoEasy for those unaware is in the non-prime leasing and lending business.It leases consumer goods and arranges secured and unsecured installment loans.And it does it very well.Annual adjusted earnings per share went from $3.56 to $5.17 in 2019.They did so well that they raised their annual dividend 45% to $1.80.This is highly irregular as the most a successful company will usually raise it's dividend  is 7-10%.Most will only raise it 3-5%.Raising it 45% shows how great the entire year has been;it is equal to the raise for 5 good years at one time for most companies.
    Quarterly Highlights
 GoEasy has tightened up it's operation in the last 2 years.Not only is it getting more business it is also getting higher margins.Loans increased by $1 billion in this quarter which is more than the $800 million in Q4 in 2018.But in addition, the margin  has increased from 2017 and 2018.This produced a record amount of revenue and adjusted EBITDA in this quarter.It appears that Go Easy  has learned to refine their operation.            

     More Consumer Goods    
  GoEasy has two main divisions- consumer goods and non-prime lending and leasing.The consumer financing division is showing increasing loan originations every quarter.That is because Go Easy lends not only  to people that want  to lease their consumer goods.They will also make loans to  customers to pay off  bills.But their consumer goods division has not seen the same amount of success.Here this blog calls for Go Easy to make a small tuck-in acquisition  such as a "small cap" furniture company to increase their product line and their revenues.Go Easy has extremely good and cheap credit now and would have little difficulty in making such an acquisition.An example would be GBT in Quebec.This would start to help balance gross profit from both divisions and spread the GSY footprint.GBT,for example has a market capitalization of only $45 million compared to about $1 billion for GSY.GoEasy's price is down now but this blog sees it moving back to the $75-$80 price range in 2020.