The Cash Store Australia Holdings Inc. reports improved First Quarter Results
on strong revenue growth and increased branch operating income

EDMONTON, Nov. 18 /CNW/ - The Cash Store Australia Holdings Inc. ("TCS Holdings") (TSXV:AUC) today released first quarter results for the period ended September 30, 2009.

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

    
    -   Revenue up 269% to $1.9 million, from $502,000 for same quarter last
        year

    -   Net loss of $194,000, compared to a loss of $195,000 for the first
        quarter last year

    -   Diluted loss per share of ($0.01) was the same as last year

    -   Opened eight new branches in the quarter.

    -   Total of 36 branches as at September 30, 2009, compared to 17 as at
        September 30, 2008.

    -   Branch operating income increased to $360,000 from $44,000 for the
        same quarter last year

    -   Same branch revenues up 56% to $67,300 from $43,200 in the first
        quarter last year

    -   EBITA of ($86,000) improved $78,000 from ($164,000) in the same
        quarter last year

    -   Total loans brokered up 300% to $8.8 million, from $2.2 million for
        the same quarter last year

    -   Retention payments of $202,000 (2.3% of loans brokered) compared to
        $29,000 (1.3% of loans brokered) for same period last year
    

Chief Executive Officer Ed McClelland said: "Current revenue and loss trending remain consistent with management's early-stage expectations for TCS Holdings. Over the quarter we opened eight new branches, bringing our total number of branches to 36, up 19 branches over the same quarter last year. Branch Operating Income for our more mature branches is offsetting new branch losses at a level that is consistent with our long-term planning."

Mr. McClelland also stated: "TCS Holdings has a unique product offering relative to other players in Australia's micro-finance industry and consumer uptake of our product continues to grow. The opening of eight new branches over the quarter has met our targets. Our financial results will dictate the number of new branches we anticipate opening over subsequent quarters."

He concluded: "Through a combination of acquisitions and organic growth, our plan remains to grow to at least 300 branches from our current base of 36 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 37 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
    -------------------------------------------------------------------------
    Consolidated results                           September 30  September 30
                                                        2009         2008
    -------------------------------------------------------------------------
                                   No. of branches       36           17

    Revenue
      Brokerage                                     $ 1,853,062  $   489,585
      Interest income                                       834       12,254
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                      1,853,896      501,839

    Branch expenses                                   1,292,672      429,000
    Retention payments                                  201,536       28,727
    -------------------------------------------------------------------------
    Branch operating income                             359,688       44,112
    -------------------------------------------------------------------------

    Regional expenses                                    88,292       17,579
    Corporate expenses                                  435,353      217,715
    Other amortization                                    9,275        2,440
    Foreign exchange loss                                20,284        1,501
    EBITA*                                            (85,716)    (163,827)
    -------------------------------------------------------------------------
    Net loss and comprehensive loss                 $  (193,516) $  (195,123)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Weighted average number of shares outstanding
     - basic and diluted                             16,375,482   15,249,500
    Basic and Diluted loss per share
      Net loss and comprehensive loss               $     (0.01) $     (0.01)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Consolidated Balance Sheet Information
    Working capital                                 $   (81,944) $ 1,879,542
    Total assets                                      2,101,330    2,857,727
    Total long-term liabilities                          56,535       19,551
    Total liabilities                                 1,006,713      523,843
    Shareholders' equity                            $ 1,094,617  $ 2,333,884
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    * 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 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.

SOURCE The Cash Store Australia Holdings Inc.

For further information: For further information: on TCS Holdings, 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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