EDMONTON, Dec. 31, 2012 /CNW/ - The Cash Store Australia Holdings Inc.
("Cash Store Australia" or the "Company" or "We") (TSXV: AUC) today
announced results for the three months ended September 30, 2012.
The decline in revenue continued in the first quarter as a result of the
Company's decision to cease brokering loans from March 17, 2012 to
April 14, 2012. Also during this period the sale of a key income
producing product was put on hold until a complete review of its key
features is undertaken. As a result of this action taken by the
Company, a significant number of customers went elsewhere for their
financial servicing needs and have not yet returned to our branches. A
concentrated and continuing effort is in place to realign ourselves
with these customers.
To counteract the effect of the ensuing periods of the reduction in
revenue, we reduced our branch operating expenses by $1.7 million in
the first quarter compared to the same period last year. New loan
products will be introduced in the very near future that we anticipate
will attract new customers and a significant portion of our lost
customer base. We will continue to monitor the performance of our
existing branch base and merge or close those branches that do not meet
our performance criteria. We closed four branches in the first quarter
of fiscal 2013 and ten in the fourth quarter of fiscal 2012. Wherever
possible we merged the operations of closed branches with other
branches in the immediate vicinity.
The decisions taken by the Company were made to ensure that we were in
full compliance with all state and federal regulatory authorities due
to changes in regulations. Our changes included revisions to loan
contracts, strengthening disclosure polices and tightening lending
The Company has made significant improvements over the quarter ended
June 30, 2012. Even though revenue decreased by $335,000, expenses at
the branch and regional manager level decreased by $2 million.
Corporate expenses remained flat quarter over quarter. The net loss for
the quarter improved to $2.9 million from $5.3 million for the quarter
ended June 30, 2012.
We expect revenue for the quarter ended December 31, 2012 to be in the
range of $2.0 to $2.1 million. Coupled with further cost reductions, we
expect the loss to be reduced to $1.9 to $2.1 million.
Highlights for the first quarter:
Revenue of $1.8 million compared to $4.7 million for the same quarter
Net loss of ($2.9 million) compared to a net loss of ($1.5 million) in
the first quarter of fiscal 2012.
Branch operating and regional expenses reduced by $1.7 million in this
quarter compared to the same quarter last year.
Diluted loss per share of ($0.18) compared to a net loss per share of
($0.09) in the same quarter last year.
Negative EBITDA of ($2.8 million) compared to negative EBITDA of ($1.0
million) in the same quarter last year.
About Cash Store Australia
Cash Store Australia is the only small sum short term advance broker in
Australia publicly traded on the TSX Venture Exchange (TSXV:AUC). Cash Store Australia operates 67 branches in the States of Victoria,
Queensland, Tasmania, Northern Territory, and New South Wales Australia
under the banner "The Cash Store".
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 achieved". 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
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:
Bill Johnson, Chief Financial Officer
(780) 732-5695; e-mail: email@example.com