The Cash Store Australia Holdings Inc. reports profit for the third quarter
and nine months ended March 31, 2010

EDMONTON, May 13 /CNW/ - The Cash Store Australia Holdings Inc. ("Cash Store Australia") (TSXV:AUC) today announced results for the three and nine months ended March 31, 2010.

Highlights for third quarter (table of results at end of release)

    -   Revenue up 243.3% to $3.2 million, from $932,000 for the same quarter
        last year

    -   Net income of $215,000, compared to a loss of $568,000 for the third
        quarter last year

    -   Branch operating income increased to $890,000 from $56,000 for the
        same quarter last year

    -   Diluted earnings per share of $0.01 compared to diluted loss per
        share of $(0.03) for same quarter last year

    -   Same branch revenues for the 20 locations open since the beginning of
        the same quarter of fiscal 2009 up 68.6% to $76,700 from $45,500 in
        the third quarter last year

    -   EBITA of $360,000 improved $878,000 from negative $518,000 in the
        same quarter last year

    -   Opened six new branches in the quarter

    Highlights for nine months ended March 31, 2010

    -   Revenue up 290.0% to $7.8 million, from $2.0 million for the same
        period last year

    -   Net income of $38,000, compared to a loss of $1.3 million for the
        same period last year

    -   Branch operating income increased to $2.0 million from $66,000 for
        the same period last year

    -   Diluted earnings per share of $0.00 compared to a diluted loss per
        share of ($0.08) for same period last year

    -   Same branch revenues for the 11 locations open since the beginning of
        fiscal 2009 up 57.8% to $212,200 from $134,500 for the same period
        last year

    -   EBITA of $419,000 up from negative $1.1 million in the same period
        last year

    -   Opened 22 branches during the nine months for a total of 50 branches
        as at March 31, 2010, compared to 22 as at March 31, 2009

Chief Executive Officer Ed McClelland said: "The third quarter was marked by a continuation of our aggressive growth strategy, substantive improvements to revenue and branch operating income, and net income growth to $215,000 from a loss position of $568,000 for the same period last year. Over the quarter we opened six new branches, bringing our total number of branches to 50, up from 28 branches over the same quarter last year. We now have a stable base of mature branches from which to fund future growth initiatives. Branch Operating Income for our more mature branches is now more than offsetting new branch losses and will allow us to continue to aggressively expand our footprint using the cash flows being generated by our operations. We anticipate opening 8 to 10 branches in the current quarter and remain on track to achieve 300 branches in operation by the end of calendar 2014."

"The President and Chief Operating Officer, Chairman and I conducted our second annual tour to meet individually with each of our managers. This is an important component of our long-term growth program. The President learns first-hand of the challenges and opportunities facing our staff and strategies are implemented to address their concerns."

He concluded: "Demand for our products and services is strong and continues to grow and Cash Store Australia remains positive on our future earnings 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 54 payday advance branches in the States of Victoria, Queensland, and Tasmania, 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         Nine Months Ended
    Consolidated results
    (presented in           March 31     March 31     March 31     March 31
     Canadian dollars)        2010         2009         2010         2009
         No. of branches       50           22           50           22

      Brokerage           $ 3,200,512  $   930,283  $ 7,748,436  $ 1,987,139
      Interest income           1,468        1,776        3,265       21,132
                            3,201,980      932,059    7,751,701    2,008,271

    Branch Expenses
      Salaries and
       benefits             1,098,480      395,911    2,828,227      888,179
      Retention payments      375,238      150,159      836,136      252,863
      Rent                    324,736      125,122      808,966      319,999
      Selling, general
       and adminstrative      218,025       98,148      555,459      236,527
      Advertising and
       promotion              194,429       64,626      504,776      135,386
      Amortization of
       capital assets         101,505       42,221      247,034      108,835
                            2,312,413      876,187    5,780,598    1,941,789
    Branch Operating
     Income                   889,567       55,872    1,971,103       66,482

      Regional expenses       120,956      137,096      321,126      174,958
      Corporate expenses      502,771      486,872    1,518,397    1,149,856
      Other amortization       10,303        7,308       29,324       13,676
      Foreign exchange
       loss (gain)             40,318       (7,291)      64,619       (1,430)
    EBITA*                  359,748     (518,351)     418,874   (1,147,358)
    Net income (loss)     $   215,219  $  (568,113) $    37,637  $(1,270,578)
    Weighted average
     number of shares
     outstanding - basic   16,375,482   15,692,273   16,375,482   15,396,250
    Basic and Diluted
     income (loss) per
      Net income (loss)   $      0.01  $     (0.03) $      0.00  $     (0.08)
    Consolidated Balance
     Sheet Information

    Working capital       $  (270,141) $   711,495  $  (270,141) $   711,495
    Total assets            3,009,088    2,529,921    3,009,088    2,529,921
    Total long-term
     liabilities               97,361       20,689       97,361       20,689
    Total liabilities       1,549,794    1,181,492    1,549,794    1,181,492
    Shareholders' equity  $ 1,459,294  $ 1,348,429  $ 1,459,294  $ 1,348,429
    * 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 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:; Or Nancy Bland, Chief Financial Officer, (780) 732-5683, e-mail:

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