For the period ended December 31, 2011
EDMONTON, Alberta/Canada, Feb. 16, 2012 (ANTARA/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 81 payday 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
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Consolidated results December 31 December 31
(presented in Canadian
dollars) 2011 2010
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No. of branches 81 77
Revenue
Brokerage $ 4,476,714 $ 3,568,289
Other income 493,275 293,415
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4,969,989 3,861,704
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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
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5,156,038 4,126,552
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Branch Operating Loss (186,049) (264,848)
Regional expenses 398,803 187,093
Corporate
expenses 785,961 934,041
Other depreciation and
amortization 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)
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Net loss $ (1,482,508) $ (1,608,520)
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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)
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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)
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Six Months Ended
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Consolidated results December 31 December 31
(presented in Canadian
dollars) 2011 2010
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No. of branches 81 77
Revenue
Brokerage $ 8,641,387 $ 6,917,567
Other income 1,024,432 422,273
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9,665,819 7,339,840
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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
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9,997,905 7,999,088
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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)
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Net loss (3,022,271) $ (2,675,669)
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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)
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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)
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* 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.)
Editor: PR Wire
Copyright © ANTARA 2012
