goeasy's (GSY.TO) first-quarter adjusted loss narrowed but missed estimates, the company said after trade on Tuesday.
The alternative lender said its adjusted loss, which excludes most one-time items, narrowed to $31.3 million, or $1.90 per adjusted diluted share, from $59.4 million, or $3.43, in the prior year period. The result missed he consensus estimate of a loss of $1.43 per share, according to FactSet.
goeasy's consumer loan portfolio grew 2% to $412.9 million from the previous $404.9 million, beating the $400.6 million expected.
Loan originations fell 19% to $551.3 million, driven primarily by a fall in merchant-originated automotive and powersports loan originations. goeasy implemented tighter credit underwriting measures due to unfavorable credit performance in those portfolios.
In its second quarter outlook, goeasy expects gross consumer loans receivable at period end to range between $4.9 billion to $5.1 billion.
The board also approved the adoption of a shareholder rights plan today.
"We continued to advance our six-point action plan in the first quarter, with cost efficiency measures already taking effect," said Patrick Ens, chief executive officer. "In March, we took decisive action to significantly reduce our exposure to merchant-originated loans. Our ending loan book size, total yield, and net charge off rate came in as expected. Our direct-to-consumer business remains strong, and with $560.1 million cash provided by operations before net principal written in the quarter, our liquidity position is solid as we manage through this transitional period."
goeasy shares closed up $0.19 to $30.99 on the Toronto Stock Exchange,