The Cash Store Australia Holdings Inc. Reports 84% Increase In Revenue For The First Quarter Ended S

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5th November 2010, 02:07pm - Views: 607

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The Cash Store Australia Holdings Inc. Reports 84% Increase in Revenue for the First Quarter Ended

September 30, 2010

EDMONTON, Nov. 4 /CNW-AsiaNet/ --

The Cash Store Australia Holdings Inc. ("Cash Store Australia") (TSXV:AUC) today announced results for the

three months ended September 30, 2010.

Highlights for first quarter (table of results at end of release)

    -   Revenue up 84.2% to $3.5 million, from $1.9 million for the same

        quarter last year


    -   Net loss of $1.1 million, compared to a loss of $194,000 for the

        first quarter last year


    -   Branch operating loss was ($371,000) compared to a branch operating

        income of $360,000 for the same quarter last year


    -   Diluted loss per share of ($0.06) compared to diluted loss per share

        of ($0.01) for same quarter last year


    -   Same branch revenues for the 28 locations open since the beginning of

        the same quarter of fiscal 2010 up 10.7% to $71,100 from $64,200 in

        the first quarter last year


    -   EBITA of negative $838,000 compared to a negative $86,000 in the same

        quarter last year


    -   Opened two new branches in the quarter

Chief Executive Officer Ed McClelland commented: "Despite year over year revenue growth of 84.2% to $3.5

million, from $1.9 million for the same quarter last year, we incurred a net loss of $1.1 million, compared to a

loss of $194,000 for the first quarter last year. Revenue growth did not meet with management's expectations

which primarily related to the implementation of new regulations in New South Wales and the rollout of the

new National Responsible Lending Framework on July 1, 2010. We have made adjustments to our sales

processes to accommodate these changes that are currently being implemented. We are confident that

revenue will improve over subsequent periods as a result of these initiatives."

He concluded: "Demand for our products and services is strong and continues to grow. Despite a

disappointing quarter, Cash Store Australia remains positive about 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 63 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


    Consolidated results                         September 30   September 30

    (presented in Canadian dollars)                  2010           2009


                                 No. of branches           63             36



      Brokerage                                  $  3,349,278   $  1,815,925

      Other income                                    128,858         37,971


                                                    3,478,136      1,853,896


    Branch Expenses

      Salaries and benefits                         1,683,666        747,786

      Retention payments                              973,207        201,536

      Rent                                            452,487        203,363

      Selling, general, and administrative            381,475        140,747

      Advertising and promotion                       211,016        138,265

      Amortization of capital assets                  147,495         62,511


                                                    3,849,346      1,494,208


    Branch Operating Income                          (371,210)       359,688


      Regional expenses                               173,524         88,292

      Corporate expenses                              724,823        435,353

      Other amortization                               13,032          9,275

      Foreign exchange loss (gain)                   (225,049)        20,284

    EBITA(x)                                         (838,295)       (85,727)


    Net loss                                     $ (1,057,540)  $   (193,516)



    Weighted average number of shares

     outstanding - basic                           16,425,213     16,375,482

    Basic and Diluted loss per share

      Net loss                                   $      (0.06)  $      (0.01)



    Consolidated Balance Sheet Information

    Working capital                              $ (2,196,479)  $    (81,944)

    Total assets                                    5,278,802      2,101,330

    Total long-term liabilities                       170,271         56,535

    Total liabilities                               5,089,808      1,006,713

    Shareholders' equity                         $    188,994   $  1,094,617



    (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 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 payday 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

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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


e-mail: ed.mcclelland(at)

Or Nancy Bland 

Chief Financial Officer 


e-mail: nancy.bland(at)


SOURCE: The Cash Store Australia Holdings Inc.

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