The Cash Store Australia Holdings Inc. Reports Improved Fourth Quarter and
Year-end Results

EDMONTON, Sept. 25 /CNW/ - The Cash Store Australia Holdings Inc. ("TCS Holdings") (TSXV:AUC) today released fourth quarter and year-end results for the period ended June 30, 2009.

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

    -   Revenue up 204% to $1.4 million, from $460,000 for same quarter last

    -   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

    -   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

    -   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."

Mr. McClelland added: "Revenues were up 124% to $3.4 million from $1.5 million last year. Same branch revenues for the nine branches open since the first quarter of last year grew 26% to $200,000 from $158,900 the previous year. Branch operating income for those same nine branches was up $308,000 to $246,000 from a loss position of $62,000 the previous year. Retention payments decreased to 2.5% of loans brokered, from 5.0% of loans brokered the previous year. We opened 17 branches in the year."

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 has been high. We anticipate continued rapid revenue growth in subsequent periods."

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 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            Year Ended
    Consolidated results    June 30      June 30      June 30      June 30
                              2009         2008         2009         2008
         No. of branches       28           11           28           11

      Brokerage           $ 1,420,419  $   454,427  $ 3,407,558  $ 1,505,703
      Interest income           1,104        5,901       22,236       25,951
                            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
    Branch operating
     income (loss)            320,605      (22,663)     387,087       (2,048)

    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)
    Net loss and
     comprehensive loss       (59,525)    (305,679)  (1,330,103)    (691,478)
    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)
    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
    * 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.

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: Or Nancy Bland, Chief Financial Officer, (780) 732-5683, e-mail:

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