EDMONTON, May 27, 2013 /CNW/ - The Cash Store Australia Holdings Inc. ("Cash Store Australia" or the "Company") (TSXV: AUC) today announced results for the three and nine months ended March 31, 2013.
At $2.2 million, revenue for the quarter is the highest it has been since the Company's decision to cease brokering loans from March 17, 2012 to April 14, 2012. With the introduction of new loan products on March 1, 2013, the Company reduced its brokerage fee by 20% in order to attract new customers and former customers who had migrated to competitors since the cessation of brokerage activities. Consequently, loan volume for the quarter increased to $8.1 million, an increase of $800,000 compared to the quarter ending December 31, 2012. Branch expenses have remained consistent as compared to the second quarter of fiscal 2013 but further savings in corporate expenses of $217,000 were achieved.
To partially counteract the effect of the reduction in revenue in ensuing periods, the Company reduced branch operating expenses by $1.2 million in the third quarter and by $3.5 million for the nine months ended March 31, 2013 as compared to the same periods in the previous fiscal year. The Company will continue to monitor the performance of its existing branch base, merge or close those branches that do not meet its performance criteria and closely manage creditor relationships to ensure access to capital is maintained.
The Company continued to make improvements in the quarter ended March 31, 2013 over the quarter ended December, 2012. The net loss for the quarter ended March 31, 2013 improved to $1.8 million from $2.1 million for the quarter ended December 31, 2012. The Company also made improvements in the nine months ended March 31, 2013 over the nine months ended June 30, 2012. The net loss for the nine months ended March 31, 2013 improved to $6.9 million from $9.8 million for the nine months ended June 30, 2012.
Highlights for the third quarter:
- Revenue of $2.2 million compared to $4.2 million for the same period last fiscal year.
- Net loss of $1.8 million compared to a net loss of $3.1 million in the third quarter of fiscal 2012.
- Branch operating expenses reduced by $1.2 million in this quarter compared to the same quarter last fiscal year.
- Diluted loss per share of $0.11 compared to a diluted loss per share of $0.19 in the same quarter last fiscal year.
- Negative Adjusted EBITDA of $1.6 million compared to negative Adjusted EBITDA of $2.4 million in the same quarter last fiscal year.
Highlights for the nine months ended March 31, 2013:
- Revenue of $6.1 million compared to $13.8 million for the same period last fiscal year.
- Net loss of $6.9 million compared to a net loss of $6.1 million in the nine months ended March 31, 2012.
- Branch operating expenses reduced by $3.5 million in this period compared to the same period last fiscal year.
- Diluted loss per share of $0.42 compared to a diluted loss per share of $0.37 in the same nine month period last fiscal year.
- Negative Adjusted EBITDA of $6.2 million compared to negative Adjusted EBITDA of $4.5 million in the same nine month period last fiscal year.
Cease Trade Order
The Company's shares were subject to a Cease Trade Order on December 4, 2012. The Alberta Securities Commission ("ASC") has reviewed the Company's September 30, 2012 public filings and issued a comment letter on February 1, 2013 requesting further information. The Company replied to the ASC on March 16, 2013 and received the ASC's response on May 2, 2013 requesting further information and clarification on certain of our responses. The ASC will not lift the Cease Trade Order until all their comments have been resolved.
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 68 branches in the States of Victoria, Queensland, Tasmania, Northern Territory, and New South Wales Australia under the banner "The Cash Store".
Summary Financial Information
|Three Months Ended||Nine Months Ended|
|Consolidated results||March 31||March 31||March 31||March 31|
|(presented in Canadian dollars)||2013||2012||2013||2012|
|No. of branches||68||81||68||81|
|Salaries and benefits||1,593,425||2,326,615||4,789,795||7,118,510|
|Selling, general, and administrative||316,269||513,007||974,931||1,528,742|
|Advertising and promotion||88,471||187,051||491,166||460,023|
|Depreciation of property and equipment||40,529||144,298||139,907||467,706|
|Branch Operating Income (Loss)||(577,542)||(1,289,415)||(2,739,235)||(1,621,501)|
|Other depreciation and amortization||7,477||12,255||23,985||39,933|
|Impairment of property and equipment||87,237||520,957||199,221||970,549|
|Foreign exchange loss (gain)||(44,057)||36,030||(11,235)||48,069|
|Weighted average number of shares|
|outstanding - basic||16,425,981||16,425,981||16,425,981||16,425,981|
|Basic and Diluted loss per share|
|Consolidated Balance Sheet Information|
|Total long-term liabilities||65,223||160,069||65,223||160,069|
|* EBITDA - earnings before interest, income taxes, depreciation of property and equipment and amortization of intangible assets. Adjusted EBITDA - earnings before interest, income taxes, depreciation of property and equipment and amortization of intangible assets, stock-based compensation and impairment of property and equipment.|
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 small sum short-term 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:
Bill Johnson, Chief Financial Officer
(780) 732-5695; e-mail: email@example.com