The Cash Store Australia Holdings Inc. reports second quarter results for the period ended December 31, 2011

EDMONTON, Feb. 16, 2012 /CNW/ - The Cash Store Australia Holdings Inc. ("Cash Store Australia") (TSXV:AUC) today announced results for the three and six months ended December 31, 2011.

Highlights for the second quarter (a table of results can be found at the end of this news release):

  • Revenue up 28.7% to $5.0 million, from $3.9 million for the same quarter last year.

  • Net loss of ($1.5 million) down from ($1.6 million) in the second quarter of last year.

  • Branch operating loss decreased to ($186,000) from ($265,000) for the same quarter of last year.

  • Diluted loss per share of ($0.09) down from ($0.10) in the same quarter last year.

  • Same branch revenues for the 62 locations open since the beginning of the second quarter of fiscal 2011 up 21.5% to $67,600 from $55,600 in the second quarter last year.

  • Negative EBITDA of ($1.3 million) down from ($1.4 million) in the same quarter last year.

  • Non-cash impairment of property and equipment of $149,000 compared to $248,000 for the same quarter last year

Highlights for the six months ended December 31, 2011

  • Revenue up 31.7% to $9.7 million, from $7.3 million for the same period last year.

  • Net loss of ($3.0 million) compared to a loss of ($2.7 million) for the same period last year.

  • Branch operating loss decreased to ($332,000) from ($659,000) for the same period last year.

  • Diluted loss per share of ($0.18), compared to a diluted loss per share of ($0.16) for period last year.

  • Same branch revenues for the 60 locations open since the beginning of the first quarter of fiscal 2011 up 1.4% to $65,500 from $64,500 in the same period last year.

  • Negative EBITDA of ($2.5 million), up from ($2.2 million) in the same period last year.

  • Non-cash impairment of property and equipment of $450,000 compared to $279,000 for the same period last year.

Chairman of the Board Gordon Reykdal said: "Cash Store Australia's revenues increased while net losses were reduced as compared to the same quarter last year. Management has initiated a comprehensive review of operations involving individual branch performance reviews and a complete review of collections procedures and underwriting processes. During this time, no new branch openings are being contemplated and consolidations or closures will occur when warranted.  Cash Store Australia is an early stage business. We remain confident that consumer demand for our products and services is sufficient to support a profitable business and management remains focussed on moving to profitability in an orderly fashion."

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 81 payday advance branches in the States of Victoria, Queensland, Tasmania, Northern Territory, and New South Wales 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     Six Months Ended
Consolidated results     December 31       December 31       December 31       December 31
(presented in Canadian dollars)     2011       2010       2011       2010
  No. of branches   81       77       81       77
                               
Revenue                              
  Brokerage   $ 4,476,714     $ 3,568,289     $ 8,641,387     $ 6,917,567
  Other income     493,275       293,415       1,024,432       422,273
      4,969,989       3,861,704       9,665,819       7,339,840
Branch Expenses                              
  Salaries and benefits     2,424,900       1,958,542       4,791,895       3,642,208
  Retention payments     1,249,920       760,302       2,296,813       1,733,509
  Rent     652,180       549,911       1,297,082       1,002,398
  Selling, general, and administrative     510,474       464,255       1,015,735       845,730
  Advertising and promotion     165,252       242,099       272,972       501,099
  Depreciation of property and equipment     153,312       151,443       323,408       274,144
      5,156,038       4,126,552       9,997,905       7,999,088
Branch Operating Loss     (186,049)       (264,848)       (332,086)       (659,248)
                               
  Regional expenses     398,803       187,093       742,458       360,611
  Corporate expenses     785,961       934,041       1,458,417       1,614,724
  Other depreciation and amortization     12,002       15,984       27,678       28,440
  Impairment of property and equipment     148,797       247,930       449,591       279,071
  Foreign exchange loss (gain)     (49,104)       (41,376)       12,041       (266,425)
  EBITDA*     (1,252,210)       (1,372,763)       (2,544,550)       (2,242,192)
Net loss   $ (1,482,508)     $ (1,608,520)     $ (3,022,271)     $ (2,675,669)
Weighted average number of shares
outstanding - basic



16,425,981




16,425,981




16,425,981




16,425,597
Basic and Diluted loss per share                              
  Net loss   $ (0.09)     $ (0.10)     $ (0.18)     $ (0.16)
Consolidated Balance Sheet Information                              
Working capital   $ (8,140,567)     $ (4,274,699)     $ (8,140,567)     $ (4,274,699)
Total assets     3,517,981       5,318,506       3,517,981       5,318,506
Total long-term liabilities     177,188       204,754       177,188       204,754
Total liabilities     9,743,258       6,522,548       9,743,258       6,522,548
Shareholders' equity   $ (6,225,277)     $ (1,204,042)     $ (6,225,277)     $ (1,204,042)

* EBITDA - earnings before interest, income taxes, stock-based compensation, depreciation of property and equipment and amortization of 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.

 

SOURCE The Cash Store Australia Holdings Inc.

For further information:

Edward McClelland, Chief Executive Officer 
(905) 632-7594; e-mail: ed.mcclelland@cashstore.com.au

Or

Nancy Bland, Chief Financial Officer
(780) 732-5683; e-mail: nancy.bland@csfinancial.ca

Profil de l'entreprise

The Cash Store Australia Holdings Inc.

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