MEDIA RELEASE PR38318
The Cash Store Australia Holdings Inc. reports strong Second Quarter Results
EDMONTON, Feb.11 /CNW-AsiaNet/ -
The Cash Store Australia Holdings Inc. ("Cash Store Australia") (TSXV:AUC) today announced results for the
three and six months ended December 31, 2009.
Highlights for second quarter (table of results at end of release)
- Revenue up 370% to $2.7 million, from $574,000 for the same quarter
last year
- Net income of $16,000, compared to a loss of $507,000 for the second
quarter last year
- Branch operating income increased to $722,000 from a loss of $32,000
for the same quarter last year
- Diluted earnings per share of $0.00 compared to diluted loss per
share of $(0.01) for same quarter last year
- Same branch revenues for the 17 locations open since the beginning of
the same quarter of fiscal 2009 up 123% to $73,200 from $32,900 in
the second quarter last year
- EBITA of $145,000 improved $610,000 from negative ($465,000) in the
same quarter last year
- Opened eight new branches in the quarter
Highlights for six months ended December 31, 2009
- Revenue up 309% to $4.5 million, from $1.1 million for the same
period last year
- Net loss of $178,000, compared to a loss of $702,000 for the same
period last year
- Branch operating income increased to $1.1 million from $12,000 for
the same period last year
- Diluted loss per share of ($0.01) compared to ($0.05) for same period
last year
- Same branch revenues for the 11 locations open since the beginning of
fiscal 2009 up 65% to $137,300 from $83,300 for the same period last
year
- EBITA of $59,000 up from negative ($629,000) in the same period last
year
- Total of 44 branches as at December 31, 2009, compared to 20 as at
December 31, 2008
Chief Executive Officer Ed McClelland said: "We are pleased with the
results achieved and trends occurring over the initial growth of Cash Store
Australia. Over the quarter we opened eight new branches, bringing our total
number of branches to 44, up 24 branches over the same quarter last year.
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."
He concluded: "Cash Store Australia is encouraged by the continuing
demand for our products and services. We are happy to be filling the needs of
an under serviced marketplace."
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 44 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
financial institutions.
Summary Financial Information
Three Months Ended Six Months Ended
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Consolidated results December 31 December 31 December 31 December 31
2009 2008 2009 2008
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No. of branches 44 20 44 20
Revenue
Brokerage $ 2,694,862 $ 567,271 $ 4,547,924 $ 1,056,856
Interest income 963 7,102 1,797 19,356
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2,695,825 574,373 4,549,721 1,076,212
Branch expenses 1,714,613 532,831 3,007,285 961,832
Retention payments 259,362 73,977 460,898 102,704
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Branch operating
income (loss) 721,850 (32,435) 1,081,538 11,676
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Regional expenses 111,877 20,283 200,169 37,862
Corporate expenses 580,276 445,270 1,015,629 662,988
Other amortization 9,746 4,994 19,021 7,435
Foreign exchange loss 4,017 4,360 24,301 5,856
EBITA(x) 144,842 (465,180) 59,126 (629,007)
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Net income (loss) and
comprehensive income
(loss) $ 15,934 $ (507,342) $ (177,582) $ (702,465)
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Weighted average
number of
shares
outstanding
- basic and
diluted 16,375,482 15,255,370 16,375,482 15,252,419
Basic and Diluted
income (loss)
per share
Net income (loss)
and
comprehensive
income (loss) $ 0.00 $ (0.03) $ (0.01) $ (0.05)
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Consolidated Balance
Sheet Information
Working capital $ (247,709) $ 1,348,229 $ (247,709) $ 1,348,229
Total assets 2,487,821 2,477,877 2,487,821 2,477,877
Total long-term
liabilities 78,090 24,078 78,090 24,078
Total liabilities 1,341,431 561,335 1,341,431 561,335
Shareholders' equity $ 1,146,390 $ 1,916,542 $ 1,146,390 $ 1,916,542
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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 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.
/CONTACT:
on Cash Store Australia, 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 
