Home / Business & Finance / The Cash Store Australia Holdings Inc. reports second quarter results for the period ended December 31, 2011

The Cash Store Australia Holdings Inc. reports second quarter results for the period ended December 31, 2011

AsiaNet 48395

EDMONTON, Alberta/Canada, Feb. 16, 2012 /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, 2011.

Highlights for the second quarter (a table of results can be found at the end of this news release):

– Revenue up 28.7% to $5.0 million, from $3.9 million for the same quarter last year.

– Net loss of ($1.5 million) down from ($1.6 million) in the second quarter of last year.

– Branch operating loss decreased to ($186,000) from ($265,000) for the same quarter of last year.

– Diluted loss per share of ($0.09) down from ($0.10) in the same quarter last year.

– Same branch revenues for the 62 locations open since the beginning of the second quarter of fiscal 2011 up 21.5% to $67,600 from $55,600 in the second quarter last year.

– Negative EBITDA of ($1.3 million) down from ($1.4 million) in the same quarter last year.

– Non-cash impairment of property and equipment of $149,000 compared to $248,000 for the same quarter last year

Highlights for the six months ended December 31, 2011

– Revenue up 31.7% to $9.7 million, from $7.3 million for the same period last year.

– Net loss of ($3.0 million) compared to a loss of ($2.7 million) for the same period last year.

– Branch operating loss decreased to ($332,000) from ($659,000) for the same period last year.

– Diluted loss per share of ($0.18), compared to a diluted loss per share of ($0.16) for period last year.

– Same branch revenues for the 60 locations open since the beginning of the first quarter of fiscal 2011 up 1.4% to $65,500 from $64,500 in the same period last year.

– Negative EBITDA of ($2.5 million), up from ($2.2 million) in the same period last year.

– Non-cash impairment of property and equipment of $450,000 compared to $279,000 for the same period last year.

Chairman of the Board Gordon Reykdal said: “Cash Store Australia’s revenues increased while net losses were reduced as compared to the same quarter last year. Management has initiated a comprehensive review of operations involving individual branch performance reviews and a complete review of collections procedures and underwriting processes. During this time, no new branch openings are being contemplated and consolidations or closures will occur when warranted. Cash Store Australia is an early stage business. We remain confident that consumer demand for our products and services is sufficient to support a profitable business and management remains focussed on moving to profitability in an orderly fashion.”

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 81payday advance branches in the States of Victoria, Queensland, Tasmania, Northern Territory, and New South Wales 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 (presented in Canadian dollars)

December 31

December 31

2011

2010

No. of branches

81

77

Revenue

Brokerage

$   4,476,714

$   3,568,289

Other income

493,275

293,415

 

4,969,989

3,861,704

Branch Expenses

Salaries and benefits

2,424,900

1,958,542

Retention payments

1,249,920

760,302

Rent

652,180

549,911

Selling, general, and administrative

510,474

464,255

Advertising and promotion

165,252

242,099

Depreciation of property and equipment

153,312

151,443

 

5,156,038

4,126,552

Branch Operating Loss

(186,049)

(264,848)

Regional expenses

398,803

187,093

Corporate expenses

785,961

934,041

Other depreciation and

12,002

15,984

Impairment of property and equipment

148,797

247,930

Foreign exchange loss (gain)

(49,104)

(41,376)

EBITDA(x)

(1,252,210)

(1,372,763)

Net loss

$  (1,482,508)

$  (1,608,520)

Weighted average number  of shares  outstanding – basic

16,425,981

16,425,981

Basic and Diluted loss per share

Net loss

$       (0.09)  $

(0.10)

Consolidated Balance Sheet Information

Working capital

$  (8,140,567)

$  (4,274,699)

Total assets

3,517,981

5,318,506

Total long-term liabilities

177,188

204,754

Total liabilities

9,743,258

6,522,548

Shareholders’ equity

$  (6,225,277)

$  (1,204,042)

 

Six Months Ended

Consolidated results

December 31

December 31

(presented in Canadian dollars)

2011

2010

No. of branches

  81

  77

Revenue

Brokerage

  $  8,641,387

 $  6,917,567

Other income

 1,024,432

 422,273

 

  9,665,819

 7,339,840

Branch Expenses

Salaries and benefits

 4,791,895

 3,642,208

Retention payments

 2,296,813

 1,733,509

Rent

 1,297,082

  1,002,398

Selling, general, and

Administrative

 1,015,735

 845,730

Advertising and promotion

 272,972

 501,099

Depreciation of property and equipment

  323,408

 274,144

 

 9,997,905

 7,999,088

Branch Operating Loss

  (332,086)

  (659,248)

 

Regional expenses

 742,458

 360,611

Corporate expenses

785,417

  1,614,724

Other depreciation and amortization

 27,678

 28,440

Impairment of property and equipment

 449,591

 279,071

Foreign exchange loss  (gain)

 12,041

 (266,425)

EBITDA*

 (2,544,550)

 (2,242,192)

Net loss

 (3,022,271)

$  (2,675,669)

Weighted average number of shares outstanding – basic

  16,425,981

 16,425,597

Basic and Diluted loss per share

Net loss

 $       (0.18)

$       (0.16)

Consolidated Balance Sheet

Information

Working capital

$  (8,140,567)

$  (4,274,699)

Total assets

3,517,981

 5,318,506

Total long-term liabilities

 177,188

 204,754

Total liabilities

 9,743,258

 6,522,548

Shareholders’ equity

$  (6,225,277)

$  (1,204,042)

* EBITDA – earnings before interest, income taxes, stock-based compensation, depreciation of property and equipment and amortization of 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: Edward McClelland, Chief Executive Officer
(905) 632-7594; e-mail: ed.mcclelland@cashstore.com.au

Or

Nancy Bland, Chief Financial Officer
(780) 732-5683; e-mail: nancy.bland@csfinancial.ca/
(AUC.)

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