MEDIA RELEASE PR37181
The Cash Store Australia Holdings Inc. Reports Improved First Quarter Results on Strong Revenue
Growth and Increased Branch Operating Income
EDMONTON, Nov. 18 /CNW-Asianet / --
The Cash Store Australia Holdings Inc. ("TCS Holdings") (TSXV:AUC) today released first quarter results
for the period ended September 30, 2009.
First Quarter Highlights (table of results at end of release)
- Revenue up 269% to $1.9 million, from $502,000 for same quarter last
year
- Net loss of $194,000, compared to a loss of $195,000 for the first
quarter last year
- Diluted loss per share of ($0.01) was the same as last year
- Opened eight new branches in the quarter.
- Total of 36 branches as at September 30, 2009, compared to 17 as at
September 30, 2008.
- Branch operating income increased to $360,000 from $44,000 for the
same quarter last year
- Same branch revenues up 56% to $67,300 from $43,200 in the first
quarter last year
- EBITA of ($86,000) improved $78,000 from ($164,000) in the same
quarter last year
- Total loans brokered up 300% to $8.8 million, from $2.2 million for
the same quarter last year
- Retention payments of $202,000 (2.3% of loans brokered) compared to
$29,000 (1.3% of loans brokered) for same period last year
Chief Executive Officer Ed McClelland said: "Current revenue and loss
trending remain consistent with management's early-stage expectations for TCS
Holdings. Over the quarter we opened eight new branches, bringing our total
number of branches to 36, up 19 branches over the same quarter last year.
Branch Operating Income for our more mature branches is offsetting new branch
losses at a level that is consistent with our long-term planning."
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 continues to grow. The opening of eight new branches
over the quarter has met our targets. Our financial results will dictate the
number of new branches we anticipate opening over subsequent quarters."
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 36
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
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Consolidated results September 30 September 30
2009 2008
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No. of branches 36 17
Revenue
Brokerage $ 1,853,062 $ 489,585
Interest income 834 12,254
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1,853,896 501,839
Branch expenses 1,292,672 429,000
Retention payments 201,536 28,727
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Branch operating income 359,688 44,112
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Regional expenses 88,292 17,579
Corporate expenses 435,353 217,715
Other amortization 9,275 2,440
Foreign exchange loss 20,284 1,501
EBITA(x) (85,716) (163,827)
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Net loss and comprehensive loss $ (193,516) $ (195,123)
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Weighted average number of shares outstanding
- basic and diluted 16,375,482 15,249,500
Basic and Diluted loss per share
Net loss and comprehensive loss $ (0.01) $ (0.01)
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Consolidated Balance Sheet Information
Working capital $ (81,944) $ 1,879,542
Total assets 2,101,330 2,857,727
Total long-term liabilities 56,535 19,551
Total liabilities 1,006,713 523,843
Shareholders' equity $ 1,094,617 $ 2,333,884
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(x) 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 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.
CONTACT:
on TCS Holdings,
please contact:
Edward McClelland,
Chief Executive Officer,
+1 (905) 632-7594,
e-mail: ed.mcclelland(at)cashstore.com.au;
Or Nancy Bland,
Chief Financial Officer,
+1 (780) 732-5683,
e-mail: nancy.bland(at)csfinancial.ca/
(AUC.)
NEWS 
