EDMONTON,
May 27, 2013 /CNW/ - The Cash Store
Australia Holdings Inc. ("Cash Store Australia" or the "Company")
(TSXV: AUC) today announced results for the three and nine months
ended March 31, 2013.
At $2.2 million,
revenue for the quarter is the highest it has been since the
Company's decision to cease brokering loans from March 17, 2012 to April
14, 2012. With the introduction of new loan products on
March 1, 2013, the Company reduced
its brokerage fee by 20% in order to attract new customers and
former customers who had migrated to competitors since the
cessation of brokerage activities. Consequently, loan volume for
the quarter increased to $8.1
million, an increase of $800,000 compared to the quarter ending
December 31, 2012. Branch expenses
have remained consistent as compared to the second quarter of
fiscal 2013 but further savings in corporate expenses of
$217,000 were achieved.
To partially counteract the effect of the reduction in revenue
in ensuing periods, the Company reduced branch operating expenses
by $1.2 million in the third quarter
and by $3.5 million for the nine
months ended March 31, 2013 as
compared to the same periods in the previous fiscal year. The
Company will continue to monitor the performance of its existing
branch base, merge or close those branches that do not meet its
performance criteria and closely manage creditor relationships to
ensure access to capital is maintained.
The Company continued to make improvements in
the quarter ended March 31, 2013 over
the quarter ended December, 2012. The net loss for the quarter
ended March 31, 2013 improved to
$1.8 million from $2.1 million for the quarter ended December 31, 2012. The Company also made
improvements in the nine months ended March
31, 2013 over the nine months ended June 30, 2012. The net loss for the nine months
ended March 31, 2013 improved to
$6.9 million from $9.8 million for the nine months ended
June 30, 2012.
Highlights for the third quarter:
- Revenue of $2.2 million compared
to $4.2 million for the same period
last fiscal year.
- Net loss of $1.8 million compared
to a net loss of $3.1 million in the
third quarter of fiscal 2012.
- Branch operating expenses reduced by $1.2 million in this quarter compared to the same
quarter last fiscal year.
- Diluted loss per share of $0.11
compared to a diluted loss per share of $0.19 in the same quarter last fiscal year.
- Negative Adjusted EBITDA of $1.6
million compared to negative Adjusted EBITDA of $2.4 million in the same quarter last fiscal
year.
Highlights for the nine months ended
March 31, 2013:
- Revenue of $6.1 million compared
to $13.8 million for the same period
last fiscal year.
- Net loss of $6.9 million compared
to a net loss of $6.1 million in the
nine months ended March 31, 2012.
- Branch operating expenses reduced by $3.5 million in this period compared to the same
period last fiscal year.
- Diluted loss per share of $0.42
compared to a diluted loss per share of $0.37 in the same nine month period last fiscal
year.
- Negative Adjusted EBITDA of $6.2
million compared to negative Adjusted EBITDA of $4.5 million in the same nine month period last
fiscal year.
Cease Trade Order
The Company's shares were subject to a Cease
Trade Order on December 4, 2012. The
Alberta Securities Commission ("ASC") has reviewed the Company's
September 30, 2012 public filings and
issued a comment letter on February 1,
2013 requesting further information. The Company replied to
the ASC on March 16, 2013 and
received the ASC's response on May 2,
2013 requesting further information and clarification on
certain of our responses. The ASC will not lift the Cease Trade
Order until all their comments have been resolved.
About Cash Store Australia
Cash Store Australia is the only small-sum
short-term advance broker in Australia publicly traded on the TSX Venture
Exchange (TSXV: AUC). Cash Store Australia operates 68 branches in
the States of Victoria,
Queensland, Tasmania, Northern Territory, and New South Wales Australia under the banner
"The Cash Store".
Summary Financial Information
| |
|
Three Months
Ended |
Nine Months
Ended |
| Consolidated results |
|
|
March 31 |
|
March 31 |
|
March 31 |
|
March 31 |
| (presented in
Canadian dollars) |
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
| |
# of branches |
|
68 |
|
81 |
|
68 |
|
81 |
| |
|
|
|
|
|
|
|
|
|
| Revenue |
|
|
|
|
|
|
|
|
|
| |
Brokerage |
|
$ |
2,105,851 |
$ |
3,775,836 |
$ |
5,778,566 |
$ |
12,417,223 |
| |
Other income |
|
|
92,425 |
|
384,465 |
|
298,061 |
|
1,408,897 |
| Total Revenue |
|
|
2,198,276 |
|
4,160,301 |
|
6,076,627 |
|
13,826,120 |
| Branch Expenses |
|
|
|
|
|
|
|
|
|
| |
Salaries and benefits |
|
|
1,593,425 |
|
2,326,615 |
|
4,789,795 |
|
7,118,510 |
| |
Retention payments |
|
|
157,861 |
|
1,602,582 |
|
722,348 |
|
3,899,395 |
| |
Rent |
|
|
579,263 |
|
676,163 |
|
1,697,715 |
|
1,973,245 |
| |
Selling, general, and
administrative |
|
|
316,269 |
|
513,007 |
|
974,931 |
|
1,528,742 |
| |
Advertising and promotion |
|
|
88,471 |
|
187,051 |
|
491,166 |
|
460,023 |
| |
Depreciation of property and
equipment |
|
|
40,529 |
|
144,298 |
|
139,907 |
|
467,706 |
| |
|
|
2,775,818 |
|
5,449,716 |
|
8,815,862 |
|
15,447,621 |
| Branch Operating
Income (Loss) |
|
|
(577,542) |
|
(1,289,415) |
|
(2,739,235) |
|
(1,621,501) |
| |
|
|
|
|
|
|
|
|
|
| |
Regional expenses |
|
|
219,856 |
|
364,257 |
|
619,939 |
|
1,106,716 |
| |
Corporate expenses |
|
|
912,282 |
|
865,029 |
|
3,134,264 |
|
2,323,446 |
| |
Other depreciation and amortization |
|
|
7,477 |
|
12,255 |
|
23,985 |
|
39,933 |
| |
Impairment of property and equipment |
|
|
87,237 |
|
520,957 |
|
199,221 |
|
970,549 |
| |
Restructuring costs |
|
|
240 |
|
- |
|
(45,188) |
|
- |
| |
Interest expense |
|
|
87,563 |
|
- |
|
227,611 |
|
- |
| |
Foreign exchange loss (gain) |
|
|
(44,057) |
|
36,030 |
|
(11,235) |
|
48,069 |
| |
EBITDA* |
|
|
(1,712,570) |
|
(2,931,390) |
|
(6,496,329) |
|
(5,602,576) |
| |
Adjusted EBITDA* |
|
|
(1,579,526) |
|
(2,410,465) |
|
(6,165,781) |
|
(4,505,423) |
| Net loss |
|
$ |
(1,848,140) |
$ |
(3,087,943) |
$ |
(6,887,832) |
$ |
(6,110,214) |
| Weighted average number of shares |
|
|
|
|
|
|
|
|
|
| |
outstanding - basic |
|
|
16,425,981 |
|
16,425,981 |
|
16,425,981 |
|
16,425,981 |
| Basic and Diluted loss per share |
|
|
|
|
|
|
|
|
|
| |
Net loss |
|
$ |
(0.11) |
$ |
(0.19) |
$ |
(0.42) |
$ |
(0.37) |
| Consolidated
Balance Sheet Information |
|
|
|
|
|
|
|
|
|
| Working capital |
|
$ |
(22,206,551) |
$ |
(10,545,912) |
$ |
(22,206,551) |
$ |
(10,545,912) |
| Total assets |
|
|
1,487,167 |
|
3,082,765 |
|
1,487,167 |
|
3,082,765 |
| Total long-term liabilities |
|
|
65,223 |
|
160,069 |
|
65,223 |
|
160,069 |
| Total liabilities |
|
|
23,204,896 |
|
12,304,690 |
|
23,204,896 |
|
12,304,690 |
| Shareholders' equity |
|
$ |
(21,717,729) |
$ |
(9,221,925) |
$ |
(21,717,729) |
$ |
(9,221,925) |
| * EBITDA - earnings
before interest, income taxes, depreciation of property and
equipment and amortization of intangible assets. Adjusted
EBITDA - earnings before interest, income taxes, depreciation of
property and equipment and amortization of intangible assets,
stock-based compensation and impairment of property and
equipment. |
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 small sum short-term 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.