The Cash Store Australia Holdings Inc. Reports Improved Fourth Quarter and
Year-end Results
Fourth Quarter Highlights (table of results at end of release)
- Revenue up 204% to $1.4 million, from $460,000 for same quarter last
year
- Net loss improved to ($60,000) from ($306,000)
- Diluted loss per share of ($0.01) compared to ($0.02) in the same
quarter last year
- EBITA of ($18,000) improved from ($274,000) in the same quarter last
year
- Branch operating income increased to $321,000 from a loss of
($23,000) for the same quarter last year
- Same branch revenues up 39% to $62,000 from $44,800 in the fourth
quarter last year
- Total loans brokered up 215% to $6.3 million, from $2.0 million for
the same quarter last year
- Retention payments of $123,000 (2.0% of loans brokered) compared to
$107,000 (5.0% of loans brokered) for same period last year
- Opened 6 new branches
Year ended June 30, 2009 highlights
- Revenue up 124% to $3.4 million, from $1.5 million last year
- Net loss increased to ($1.3 million) from ($691,000) as a result of
$674,000 in one time start-up costs, primarily related to the Company
going public and obtaining a stock exchange listing
- Diluted loss per share of ($0.09) compared to ($0.19) for fiscal 2008
- EBITA ($1.2 million) compared to ($578,000) in fiscal 2008
- Branch operating income for the year was $387,000 compared to a loss
of ($2,000) in the same period last year
- Same branch revenues up 26% to $200,000 from $158,900
- Retention payments of $376,000 (2.5% of loans brokered) compared to
$245,000 (5.0% of loans brokered) for same period last year
- Total loans brokered up 108% to $15.0 million, from $7.2 million last
year
- 17 new branches opened
Chief Executive Officer Ed McClelland said: "Current revenue and loss trending is consistent with management's early-stage expectations for TCS Holdings. Our primary focus this past year has been to secure the profitability of our branches and to accelerate the expansion of our branch network. We have succeeded on all fronts."
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 28 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
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 Year Ended
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Consolidated results June 30 June 30 June 30 June 30
2009 2008 2009 2008
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No. of branches 28 11 28 11
Revenue
Brokerage $ 1,420,419 $ 454,427 $ 3,407,558 $ 1,505,703
Interest income 1,104 5,901 22,236 25,951
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1,421,523 460,328 3,429,794 1,531,654
Branch expenses 977,440 376,002 2,666,366 1,288,453
Retention payments 123,478 106,989 376,341 245,249
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Branch operating
income (loss) 320,605 (22,663) 387,087 (2,048)
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Regional expenses 111,176 32,410 286,134 92,291
Corporate expenses 271,017 272,464 1,420,873 565,833
Other amortization 8,136 6,558 21,812 25,213
Foreign exchange
(gain) loss (10,199) (28,416) (11,629) 6,093
Net loss and
comprehensive loss (59,525) (305,679) (1,330,103) (691,478)
EBITA* (17,755) (273,795) (1,165,113) (578,118)
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Net loss and
comprehensive loss (59,525) (305,679) (1,330,103) (691,478)
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Weighted average
number of shares
outstanding - basic
and diluted 16,375,482 3,558,876 15,640,387 3,558,876
Basic and Diluted
loss per share
Net loss and
comprehensive loss (0.01) (0.02) (0.09) (0.19)
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Consolidated Balance
Sheet Information
Working capital 393,996 2,177,519 393,996 2,177,519
Total assets 1,898,840 3,607,441 1,898,840 3,607,441
Total long-term
liabilities 38,139 22,476 38,139 22,476
Total liabilities 646,545 1,078,434 646,545 1,078,434
Shareholders' equity 1,252,295 2,529,007 1,252,295 2,529,007
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* 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 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: on TCS Holdings, please contact: Edward McClelland, Chief Executive Officer, (905) 632-7594, e-mail: [email protected] Or Nancy Bland, Chief Financial Officer, (780) 732-5683, e-mail: [email protected]
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