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
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Consolidated results
(presented in March 31 March 31 March 31 March 31
Canadian dollars) 2010 2009 2010 2009
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No. of branches 50 22 50 22
Revenue
Brokerage $ 3,200,512 $ 930,283 $ 7,748,436 $ 1,987,139
Interest income 1,468 1,776 3,265 21,132
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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
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2,312,413 876,187 5,780,598 1,941,789
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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)
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Net income (loss) $ 215,219 $ (568,113) $ 37,637 $(1,270,578)
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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
share
Net income (loss) $ 0.01 $ (0.03) $ 0.00 $ (0.08)
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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
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* 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.
For further information: on Cash Store Australia, 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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