The Cash Store Australia Holdings Inc. reports fourth quarter and year end
results. Annual revenue of $11.5 million up from $3.4 million in prior year

EDMONTON, Aug. 26 /CNW/ - The Cash Store Australia Holdings Inc. ("Cash Store Australia") (TSXV:AUC) today announced results for the three and twelve months ended June 30, 2010.

Highlights for the fourth quarter (table of results at end of release)

    
    -   Opened 11 new branches in the quarter

    -   Revenue up 171.4% to $3.8 million, from $1.4 million for the same
        quarter last year

    -   Branch operating income increased to $817,000 from $321,000 for the
        same quarter last year

    -   Net loss of $210,000, compared to a loss of $60,000 for the fourth
        quarter last year

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

    -   Same branch revenues for the 22 locations open since the beginning of
        the fourth quarter of fiscal 2009 up 20.4% to $73,100 from $60,700 in
        the fourth quarter last year

    -   EBITA of negative $35,000 compared to negative $18,000 in the same
        quarter last year
    

Highlights for 12 months ended June 30, 2010

    
    -   Opened 33 branches during the twelve months for a total of 61
        branches as at June 30, 2010, compared to 28 as at June 30, 2009

    -   Revenue up 238.2% to $11.5 million, from $3.4 million for the same
        period last year

    -   Branch operating income increased to $2.8 million from $387,000 for
        the same period last year

    -   Net loss of $172,000, compared to a loss of $1.3 million for the same
        period last year

    -   Diluted loss per share of $(0.01) compared to a diluted loss per
        share of ($0.09) for the same period last year

    -   Same branch revenues for the 11 locations open since the beginning of
        fiscal 2009 up 45.7% to $289,400 from $198,700 for the same period
        last year

    -   EBITA of $384,000 up from negative $1.2 million in the same period
        last year
    

Chief Executive Officer Ed McClelland said: "Fiscal 2010 was a period of significant growth with revenue increasing by $8.1 million to $11.5 million and branch operating income increasing by $2.4 million to $2.8 million. The addition of 33 branches in the year grew our branch network to a total of 61 branches. Our corporate infrastructure was also further developed to support our longer-term growth strategy. After the costs associated with the rapid addition of 33 branches over the year, positive cash flows remain strong. We are on track to achieve 300 branches in operation by the end of calendar 2014."

He concluded: "Demand for our products and services is strong and continues to grow and Cash Store Australia remains positive regarding our future growth 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 61 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        Twelve Months Ended
    -------------------------------------------------------------------------
    Consolidated results    June 30      June 30      June 30      June 30
                              2010         2009         2010         2009
    -------------------------------------------------------------------------
         No. of branches       61           28           61           28


    Revenue
      Brokerage           $ 3,723,968  $ 1,390,561  $11,370,837  $ 3,365,435
      Other income             56,071       30,962      160,903       64,359
    -------------------------------------------------------------------------
                            3,780,039    1,421,523   11,531,740    3,429,794

    Branch expenses         2,436,715      977,440    7,381,178    2,666,366
    Retention payments        526,698      123,478    1,362,834      376,341
    -------------------------------------------------------------------------
    Branch operating
     income                   816,626      320,605    2,787,728      387,087
    -------------------------------------------------------------------------

    Regional expenses         147,301      111,176      468,426      286,134
    Corporate expenses        759,376      271,017    2,277,775    1,420,873
    Other amortization          3,376        8,136       32,698       21,812
    Foreign exchange
     (gain) loss              116,203      (10,199)     180,822      (11,629)
    Net loss and
     comprehensive loss      (209,630)     (59,525)    (171,993)  (1,330,103)
    EBITA*                  (35,066)     (17,755)     383,797   (1,165,113)
    -------------------------------------------------------------------------
    Net loss and
     comprehensive loss   $  (209,630) $   (59,525) $  (171,993) $(1,330,103)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Weighted average
     number of shares
     outstanding - basic
     and diluted           16,378,779   16,375,482   16,376,304   15,640,387
    Basic and Diluted
     loss per share
      Net loss and
       comprehensive
       loss               $     (0.01) $     (0.01) $     (0.01) $     (0.09)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Consolidated Balance
     Sheet Information
    Working capital       $  (632,575) $   393,996  $  (632,575) $   393,996
    Total assets            3,564,828    1,898,840    3,564,828    1,898,840
    Total long-term
     liabilities              126,600       38,139      126,600       38,139
    Total liabilities       2,224,178      646,545    2,224,178      646,545
    Shareholders'
     equity               $ 1,340,650  $ 1,252,295  $ 1,340,650  $ 1,252,295
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    * EBITA - earnings before interest, income taxes, stock-based
        compensation, amortization of capital 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: For further information: on Cash Store Australia, please contact: 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

Organization Profile

The Cash Store Australia Holdings Inc.

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