The Cash Store Australia Holdings Inc. reports strong Second Quarter Results

EDMONTON, Feb. 11 /CNW/ - The Cash Store Australia Holdings Inc. ("Cash Store Australia") (TSXV:AUC) today announced results for the three and six months ended December 31, 2009.

Highlights for second quarter (table of results at end of release)

    
    -   Revenue up 370% to $2.7 million, from $574,000 for the same quarter
        last year

    -   Net income of $16,000, compared to a loss of $507,000 for the second
        quarter last year

    -   Branch operating income increased to $722,000 from a loss of $32,000
        for the same quarter last year

    -   Diluted earnings per share of $0.00 compared to diluted loss per
        share of $(0.01) for same quarter last year

    -   Same branch revenues for the 17 locations open since the beginning of
        the same quarter of fiscal 2009 up 123% to $73,200 from $32,900 in
        the second quarter last year

    -   EBITA of $145,000 improved $610,000 from negative ($465,000) in the
        same quarter last year

    -   Opened eight new branches in the quarter
    

Highlights for six months ended December 31, 2009

    
    -   Revenue up 309% to $4.5 million, from $1.1 million for the same
        period last year

    -   Net loss of $178,000, compared to a loss of $702,000 for the same
        period last year

    -   Branch operating income increased to $1.1 million from $12,000 for
        the same period last year

    -   Diluted loss per share of ($0.01) compared to ($0.05) for same period
        last year

    -   Same branch revenues for the 11 locations open since the beginning of
        fiscal 2009 up 65% to $137,300 from $83,300 for the same period last
        year

    -   EBITA of $59,000 up from negative ($629,000) in the same period last
        year

    -   Total of 44 branches as at December 31, 2009, compared to 20 as at
        December 31, 2008
    

Chief Executive Officer Ed McClelland said: "We are pleased with the results achieved and trends occurring over the initial growth of Cash Store Australia. Over the quarter we opened eight new branches, bringing our total number of branches to 44, up 24 branches over the same quarter last year. Branch Operating Income for our more mature branches is now more than offsetting new branch losses and will allow us to continue to aggressively expand our footprint using the cash flows being generated by our operations."

He concluded: "Cash Store Australia is encouraged by the continuing demand for our products and services. We are happy to be filling the needs of an under serviced marketplace."

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 44 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 financial institutions.

Summary Financial Information

    
                             Three Months Ended         Six Months Ended
    -------------------------------------------------------------------------
    Consolidated results  December 31  December 31  December 31  December 31
                              2009         2008         2009         2008
    -------------------------------------------------------------------------
           No. of branches     44           20           44           20

    Revenue
      Brokerage           $ 2,694,862  $   567,271  $ 4,547,924  $ 1,056,856
      Interest income             963        7,102        1,797       19,356
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                            2,695,825      574,373    4,549,721    1,076,212

    Branch expenses         1,714,613      532,831    3,007,285      961,832
    Retention payments        259,362       73,977      460,898      102,704
    -------------------------------------------------------------------------
    Branch operating
     income (loss)            721,850      (32,435)   1,081,538       11,676
    -------------------------------------------------------------------------

    Regional expenses         111,877       20,283      200,169       37,862
    Corporate expenses        580,276      445,270    1,015,629      662,988
    Other amortization          9,746        4,994       19,021        7,435
    Foreign exchange loss       4,017        4,360       24,301        5,856
    EBITA*                  144,842     (465,180)      59,126     (629,007)
    -------------------------------------------------------------------------
    Net income (loss) and
     comprehensive income
     (loss)               $    15,934  $  (507,342) $  (177,582) $  (702,465)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Weighted average
     number of
     shares
     outstanding
     - basic and
     diluted               16,375,482   15,255,370   16,375,482   15,252,419
    Basic and Diluted
     income (loss)
     per share
      Net income (loss)
       and
       comprehensive
       income (loss)      $      0.00  $     (0.03) $     (0.01) $     (0.05)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Consolidated Balance
     Sheet Information
    Working capital       $  (247,709) $ 1,348,229  $  (247,709) $ 1,348,229
    Total assets            2,487,821    2,477,877    2,487,821    2,477,877
    Total long-term
     liabilities               78,090       24,078       78,090       24,078
    Total liabilities       1,341,431      561,335    1,341,431      561,335
    Shareholders' equity  $ 1,146,390  $ 1,916,542  $ 1,146,390  $ 1,916,542
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    * 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 achieve. 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 pay day 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, [phone], e-mail: [email protected]; Or Nancy Bland, Chief Financial Officer, [phone], e-mail: [email protected]