EDMONTON, Sept. 1 /CNW/ - The Cash Store Financial Services Inc. ("Cash
Store Financial") today announced its acquisition of Affordable Payday Loans
("Affordable"), an Ontario-based regional provider with eight locations
throughout Ontario and two locations in Edmonton, Alberta.
Cash Store Financial expects to consolidate three of the acquired
Affordable locations with nearby Cash Store or Instaloans branches. The
remaining branches will be rebranded and incorporated into the Company's
Cash Store Financial is the largest provider of alternative financial
products and services in Canada with a growing network of more than 450
branches in over 200 communities nationwide. The company operates two of the
most recognizable brands in Canada's expanding payday loan services market -
The Cash Store and Instaloans.
Mr. Gordon Reykdal, Chairman and CEO commented, "The acquisition of
Affordable is part of our strategy to aggressively expand our national
footprint. New provincial regulations and rate caps are below the cost of
operating for many small operators and some are choosing to exit the market.
We have been presented with several opportunities as a result of this
Mr. Reykdal further commented: "Our objective for fiscal 2010 is to open
between 70 and 80 branches in underserved communities across Canada. Our
expectation is that approximately 22 new branches will open in the first
quarter. All of this growth is organic and funded from existing cash flow. The
acquisition of Affordable's locations and any further acquisitions will be in
addition to our current expansion target of 70 to 80 new branches."
About Cash Store Financial
Cash Store Financial is the only payday advance broker in Canada publicly
traded on the Toronto Stock Exchange (TSX: CSF). Cash Store Financial operates
more than 450 branches across Canada under the banners: The Cash Store and
The Cash Store and Instaloans act as brokers to facilitate payday advance
services to income-earning consumers who may not be able to obtain them from
traditional banks. Cash Store Financial also provides a private-label debit
card - the Freedom card and a prepaid credit card - the Freedom MasterCard,
and other ancillary products.
Cash Store Financial employs more than 1,600 associates and is
headquartered in Edmonton, Alberta.
This News Release contains "forward-looking information" within the
meaning of applicable Canadian and United States securities legislation.
Forward-looking information includes, but is not limited to, information with
respect to our objectives, strategies, operations and financial results,
competition as well initiatives to grow revenue or reduce retention payments.
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". In
particular this News Release contains forward-looking statements in connection
with the Cash Store Financials goals and strategic priorities, introduction of
products, share repurchase initiatives and branch openings. 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 Financial, to be materially different from those
expressed or implied by such forward-looking information, including, but not
limited to, changes in economic and political conditions, legislative or
regulatory developments, technological developments, third-party arrangements,
competition, litigation, risks associated with but not limited to, market
conditions, and other factors described in our Annual Information Form ("AIF")
dated August 26, 2009 under the heading "Risk Factors". 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, including our knowledge of the current
credit, interest rate and liquidity conditions affecting us and the Canadian
economy. Although we believes 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.
For further information:
For further information: on Cash Store Financial, please contact: Gordon
J. Reykdal, Chairman and Chief Executive Officer, (780) 408-5118 or Nancy L.
Bland, Chief Financial Officer, (780) 732-5683 or Michael J.L. Thompson,
Senior Vice President & Corporate Secretary, (780) 408-5595