The Cash Store Australia Holdings Inc. reports 84% increase in revenue for
the first Quarter ended September 30, 2010
EDMONTON, Nov. 4 /CNW/ - The Cash Store Australia Holdings Inc. ("Cash Store Australia") (TSXV:AUC) today announced results for the three months ended September 30, 2010.
Highlights for first quarter (table of results at end of release)
- Revenue up 84.2% to $3.5 million, from $1.9 million for the same
quarter last year
- Net loss of $1.1 million, compared to a loss of $194,000 for the
first quarter last year
- Branch operating loss was ($371,000) compared to a branch operating
income of $360,000 for the same quarter last year
- Diluted loss per share of ($0.06) compared to diluted loss per share
of ($0.01) for same quarter last year
- Same branch revenues for the 28 locations open since the beginning of
the same quarter of fiscal 2010 up 10.7% to $71,100 from $64,200 in
the first quarter last year
- EBITA of negative $838,000 compared to a negative $86,000 in the same
quarter last year
- Opened two new branches in the quarter
Chief Executive Officer Ed McClelland commented: "Despite year over year revenue growth of 84.2% to $3.5 million, from $1.9 million for the same quarter last year, we incurred a net loss of $1.1 million, compared to a loss of $194,000 for the first quarter last year. Revenue growth did not meet with management's expectations which primarily related to the implementation of new regulations in New South Wales and the rollout of the new National Responsible Lending Framework on July 1, 2010. We have made adjustments to our sales processes to accommodate these changes that are currently being implemented. We are confident that revenue will improve over subsequent periods as a result of these initiatives."
He concluded: "Demand for our products and services is strong and continues to grow. Despite a disappointing quarter, Cash Store Australia remains positive about our future earnings potential."
About Cash Store Australia
Cash Store Australia is the only payday advance broker in Australia publicly traded on the TSX Venture Exchange (TSXV:AUC). Cash Store Australia operates 63 payday advance branches in the States of Victoria, Queensland, and Tasmania, Australia under the banner "The Cash Store".
Cash Store Australia acts as a broker to facilitate payday advance services to income-earning consumers who may not be able to obtain them from traditional financial institutions.
Summary Financial Information
Three Months Ended
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Consolidated results September 30 September 30
(presented in Canadian dollars) 2010 2009
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No. of branches 63 36
Revenue
Brokerage $ 3,349,278 $ 1,815,925
Other income 128,858 37,971
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3,478,136 1,853,896
Branch Expenses
Salaries and benefits 1,683,666 747,786
Retention payments 973,207 201,536
Rent 452,487 203,363
Selling, general, and administrative 381,475 140,747
Advertising and promotion 211,016 138,265
Amortization of capital assets 147,495 62,511
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3,849,346 1,494,208
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Branch Operating Income (371,210) 359,688
Regional expenses 173,524 88,292
Corporate expenses 724,823 435,353
Other amortization 13,032 9,275
Foreign exchange loss (gain) (225,049) 20,284
EBITA* (838,295) (85,727)
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Net loss $ (1,057,540) $ (193,516)
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Weighted average number of shares
outstanding - basic 16,425,213 16,375,482
Basic and Diluted loss per share
Net loss $ (0.06) $ (0.01)
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Consolidated Balance Sheet Information
Working capital $ (2,196,479) $ (81,944)
Total assets 5,278,802 2,101,330
Total long-term liabilities 170,271 56,535
Total liabilities 5,089,808 1,006,713
Shareholders' equity $ 188,994 $ 1,094,617
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* EBITA - earnings before interest, income taxes, stock-based
compensation, amortization of capital and intangible assets.
Forward-Looking Information
This News Release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information with respect to our objectives, strategies, operations and financial results. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Cash Store Australia, to be materially different from those expressed or implied by such forward-looking information. All material assumptions used in making forward-looking statements are based on management's knowledge of current business conditions and expectations of future business conditions and trends. Although we believe the assumptions used to make such statements are reasonable at this time and have attempted to identify in our continuous disclosure documents important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Certain material factors or assumptions are applied by us in making forward-looking statements, include without limitation, factors and assumptions regarding our continued ability to fund our payday loan business, rates of customer defaults, relationships with, and payments to, third party lenders, demand for our products, as well as our operating cost structure and current consumer protection regulations. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. We do not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information: on Cash Store Australia, please contact: Edward McClelland, Chief Executive Officer, (905) 632-7594, e-mail: [email protected]; Or Nancy Bland, Chief Financial Officer, (780) 732-5683, e-mail: [email protected]
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