AsiaNet 48395

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       
    -----------------------------------------------------------------
    Consolidated results                December 31    December 31    
    (presented in Canadian
     dollars)                               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
       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)  
    -----------------------------------------------------------------  
    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.)

 

Editor:

COPYRIGHT © 2012

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