The Cash Store Australia Holdings Inc. Reports Solid Third Quarter Results



    EDMONTON, May 20 /CNW/ - The Cash Store Australia Holdings Inc. ("TCS
Holdings") (TSXV:AUC) today released third Quarter results for the period
ended March 31, 2009.

    
    Third Quarter Highlights (table of results at end of release)

    -   Revenue up 183% to $1.0 million, from $356,000 from the same period
        last year

    -   Total loans brokered up 257% to $4.1 million, from $1.6 million for
        the same quarter last year

    -   Same branch revenues up 44% to $50,800 from $35,200

    -   Retention payments of $143,000 (3.5% of loans brokered) compared with
        $56,000 (3.6% of loans brokered) for same period last year

    -   Branch operating loss increased to $175,000 from $134,000 for the
        same period last year as a result of the accelerated store openings

    -   Net loss increased to $568,000 from $255,000 due to one-time start up
        costs and accelerated store openings

    -   Opened two branches

    Year to Date Highlights (nine months)

    -   Revenue up 97% to $2.1 million, from $1.1 million for the same period
        last year

    -   Total loans brokered up 45% to $9.0 million, from $4.9 million for
        the same quarter last year

    -   Same branch revenues up 23% to $138,600 from $112,500

    -   Retention payments of $257,000 (2.9% of loans brokered) compared with
        $138,000 (2.8% of loans brokered) for same period last year

    -   Branch operating loss increased to $268,000 from $133,000 for the
        same period last year as a result of the accelerated store openings

    -   Net loss increased to $1.3 million from $386,000 due to one-time
        start up costs and accelerated store openings

    - Opened eleven branches
    

    In releasing the results, Chief Executive Officer Ed McClelland said
current revenue and loss trending is consistent with management's early-stage
expectations for TCS Holdings. TCS Holdings long-term objective is to quickly
become the dominant player in the Australian market.
    "Australia's economy and consumer patterns mirror those of most other
advanced economies in which the alternative finance industry is more
developed. Within Australia, demand for small sum short-term loans is very
high, but the market has yet to respond to that demand," said McClelland.
    He added: "Through a combination of acquisitions and organic growth we
plan to grow to at least 300 branches from our current base of 25 within five
years. Our management group is well experienced in penetrating underserved
markets and is committed to this aggressive growth initiative."

    About TCS Holdings

    TCS Holdings is the only payday advance broker in Australia publicly
traded on the TSX, Venture Exchange (TSXV:AUC). TCS Holdings operates 25
payday advance branches in the States of Victoria, Queensland, and Tasmania,
Australia under the banner The Cash Store.
    TCS Holdings acts as a broker to facilitate payday advance services to
income-earning consumers who may not be able to obtain them from traditional
banks.

    
    Summary Financial Information

    -------------------------------------------------------------------------
                           Three Months Ended           Nine Months Ended
    -------------------------------------------------------------------------
    Consolidated
     results             March 31      March 31      March 31      March 31
                           2009          2008          2009          2008
    -------------------------------------------------------------------------
        No. of branches     22            10            22            10

    Revenue
      Brokerage        $ 1,004,890   $   354,503   $ 2,061,880   $ 1,054,345
      Corporate              1,411         1,232        20,633         1,789
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                         1,006,301       355,735     2,082,513     1,056,134

    Branch expenses      1,026,449       433,790     2,092,537     1,050,825
    Retention payments     154,781        55,542       257,485       138,077
    -------------------------------------------------------------------------
    Branch
     operating loss       (174,929)     (133,597)     (267,509)     (132,768)
    -------------------------------------------------------------------------

    Regional expenses      134,804        57,570       357,306       131,830
    Corporate expenses     275,031        58,779       644,834        78,519
    Other amortization       7,268         6,690        16,527        18,648
    Unrealized foreign
     exchange
     (gain) loss           (23,919)       (1,141)      (15,598)       24,034
    EBITA                 (518,504)     (226,239)   (1,149,975)     (304,323)
    -------------------------------------------------------------------------
    Net loss and
     comprehensive
     loss                 (568,113)     (255,495)   (1,270,578)     (385,799)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Weighted average
     number of shares
      outstanding -
       basic            15,692,273    15,249,500    15,396,250    15,249,500
    Basic and Diluted
     earnings per
     share
      Net loss and
       comprehensive
       loss                  (0.03)        (0.02)        (0.08)        (0.03)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Consolidated
     Balance Sheet
     Information
    Working capital        711,495      (321,507)      711,495      (321,507)
    Total assets         2,529,921       642,268     2,529,921       642,268
    Total long-term
     liabilities            20,689        12,181        20,689        12,181
    Total liabilities    1,181,492       666,038     1,181,492       666,038
    Shareholders'
     equity              1,348,429       (23,770)    1,348,429       (23,770)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    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 TCS Holdings, 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:

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

Organization Profile

The Cash Store Australia Holdings Inc.

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