Record Annual Revenue of $400 Million Driven by Global Store
Footprint Expansion; Announces Acquisition of Forty-Five U.S.
Financial Services Stores and Moves Closer to Utilizing Significant
Tax NOL'S
BERWYN, Pa.--(BUSINESS WIRE)--Sept. 10, 2007--Dollar Financial
Corp (NASDAQ:DLLR), a leading international financial services company
serving under-banked consumers, today announced results for the fiscal
fourth quarter and year ended June 30, 2007.
Fiscal fourth quarter highlights (compared to the prior year
period):
-- Consolidated revenue was $109.1 million, an increase of 25.5%.
-- Total revenue from the Company's international operations
increased by 39.3% or $23.5 million.
-- The consolidated loan loss provision, as a percentage of gross
consumer lending revenue, was 21.3%.
-- Store and regional margin, as a percentage of total revenue,
increased to 38.4%, as compared to 35.6% for the prior year's
quarter.
-- Consolidated Adjusted EBITDA was $32.0 million, an increase of
40.6% or $9.2 million.
-- Due principally to operating losses in the U.S. business, as a
result of the transition from bank-funded installment loans to
company-funded loans, the effective tax rate increased to
42.1% for the quarter.
-- Pro forma income before income taxes, which primarily excludes
debt financing costs of $0.9 million, increased 60.6% from
$11.8 million to $18.9 million.
-- Pro forma fully-diluted earnings per share increased to $0.48
compared to $0.37 for the prior year.
-- Actual fully-diluted earnings per share were $0.42 compared to
$0.10 per share for the previous year.
-- Opened 12 de novo stores in the quarter.
On August 30, 2007, the Company entered into agreements to acquire
forty-five financial services stores principally located in the
Midwest and Hawaii. The total purchase price for the acquisition,
including the consumer loan portfolio, is $27.0 million, in addition
to a payment for the cash in the stores at closing. The Company is
utilizing a portion of the proceeds from its recent $200.0 million
senior convertible note offering completed on June 27, 2007 to pay for
the acquisition. The total revenue and EBITDA contribution of these
stores on an annual basis is estimated to be $13.0 million and $4.5
million, respectively.
The Company has already completed the purchase of twenty-two of
the forty-five stores that are located in Missouri, Hawaii, Arizona,
and Oklahoma and expects to finalize the purchase of the remaining
twenty-three stores which are principally in Kansas, along with
several stores in Nebraska, Iowa and South Carolina upon the receipt
of state and local business licenses. The purchase of these remaining
stores is expected to be finalized over the next 15 to 90 days and the
purchase price for the acquisition is being prorated and remitted
based on the timing of when the stores are acquired.
"We continue to execute on our multi-country, multi-channel and
multi-product growth strategy and pursue the best investment
opportunities across all three of our geographic markets to achieve
the highest possible return for our shareholders," commented Jeff
Weiss, the Company's Chairman and Chief Executive Officer. "The
acquisition of these forty-five well managed and strong performing
stores represents our entrance into several new U.S. markets in the
midwest, and is the first step in our operational strategy to improve
the profitability of our U.S. business and unlock the value of our
significant tax NOL's. During the quarter, we also benefited from the
investments we made in our international businesses, achieving nearly
a 40% increase in total revenue from our combined Canadian and U.K.
business segments. Furthermore, our global credit losses for the
quarter continue to be in line with our expectations."
Mr. Weiss continued, "This marks the conclusion of another very
successful year for the Company. During fiscal 2007, we achieved
record annual revenue of over $400.0 million, while pre-tax earnings,
excluding one-time charges, were a record $67.2 million. These results
reflect the continuation of what has been a tremendous period of
growth for the Company in which we have more than doubled our annual
revenue over the past five years. In fiscal 2007, we continued to
expand our global store footprint through the acquisition of 115
financial services stores in addition to opening 52 de novo stores
across the U.S., Canada and the United Kingdom.
"We are very excited about the growth prospects for our Company as
a result of several catalysts including improving visibility in the
Canadian regulatory environment, growth opportunities burgeoning in
the U.K. and other potential international markets, as well as the
significant historical tax operating losses the Company can apply
against future U.S. earnings. In summary, we are pleased with our
performance for the year and believe we are well-positioned to
continue to successfully execute on our strategy of being the most
diversified company in our sector, both in terms of products and
geographies."
For the quarter ended June 30, 2007, consolidated check cashing
revenue increased by 20.6%, or $7.6 million, year-over-year as the
Canadian business segment grew by 31.2% or $4.5 million while the U.K.
business realized growth of 24.8% or $2.7 million. On a consolidated
basis, the face amount of the average check cashed increased 7.6% to
$496 for the quarter ended June 30, 2007 compared to $461 for the
prior year period, and the average fee per check cashed increased by
10.3% to $19.23.
For the quarter ended June 30, 2007, consolidated net consumer
lending revenue increased by 33.1% or $12.1 million compared to the
prior year, driven by growth in Canada of 58.0% or $10.0 million and
growth in the U.K. of 37.1% or $2.6 million. The consolidated loan
loss provision for the fiscal fourth quarter, as a percentage of gross
consumer lending revenue, was in line with the Company's expectations
at 21.3% as compared to 20.8% for the third quarter of fiscal 2007.
Total Company funded loan originations were $401.2 million for the
quarter ended June 30, 2007, representing a net increase of 56.0%, or
$144.0 million, compared to the prior year. For the fiscal fourth
quarter, company funded loan originations in Canada increased by 62.5%
or $93.6 million and U.K. loan originations increased by 51.6% or
$26.9 million. Furthermore, loan originations in the U.S. increased by
42.3% or $23.4 million as a result of both an acquisition in the
second quarter of fiscal 2007 and also the transition, during the
fiscal fourth quarter, of a portion of the U.S. loan portfolio from
bank-funded installment loans to company-funded loans.
Money transfer fees for the quarter increased 24.8% or $1.1
million year-over-year, as a result of continued growth in the
Company's international markets. Other revenue increased by 14.9% or
$1.4 million for the quarter ended June 30, 2007, principally due to
the success of MasterCard(R) branded debit-card sales in Canada and
the U.K., as well as growth in the foreign currency product in both
the Canadian and U.K. businesses.
Comparable store sales increased 7.1% or $5.9 million for the
fiscal fourth quarter, and on a constant currency basis increased by
3.8% or $3.3 million compared to the prior year period. On a local
currency basis, the Company's Canadian business realized comparable
store sales growth of 6.9%, the U.K. operation generated comparable
store sales growth of 15.5%, while same store sales in the U.S.
decreased by 8.5% as they were negatively impacted during the quarter
by the transition of a portion of the loan portfolio from bank-funded
installment loans to company-funded loan products.
The Company realized a store and regional margin of $41.8 million
for the quarter ended June 30 2007, an increase of 35.2% as compared
to $31.0 million in the prior year's quarter. As a percentage of total
revenue, store and regional margin increased to 38.4% for the fiscal
fourth quarter, as compared to 35.6% for the prior year. Corporate
expenses, as a percentage of total revenue, were slightly higher for
the quarter than the previous year at 12.8%.
The Company generated net income of $10.3 million for the fiscal
fourth quarter, an increase of 430% as compared to $1.9 million in the
prior year period, and actual fully-diluted earnings per share were
$0.42 compared to $0.10 per share for the previous year.
Highlights for the Fiscal Year Ended June 30, 2007 (Fiscal 2007)
Total revenue for fiscal 2007 was $409.9 million, representing an
increase of 24.8% or $81.4 million over the prior year. Global check
cashing revenue increased by 17.0% or $24.3 million while net consumer
lending revenue increased by 37.4% or $49.4 million. Store and
regional margin increased by 32.5% or $37.9 million for fiscal 2007,
and as a percentage of total revenue, improved to 37.8% as compared to
35.6% for the prior year.
Corporate costs, which included additional costs to support the
Company's global expansion strategy as well as additional stock based
compensation costs recognized under FAS 123R, were 13.1% of total
revenue for the fiscal year. Excluding the impact of stock based
compensation, corporate costs as a percentage of total revenue were
12.5% for fiscal 2007 compared to 12.7% of total revenue for the prior
fiscal year.
Pro forma income before income taxes, excluding $7.3 million of
one-time charges in fiscal 2006 and $61.6 million of one-time charges
in fiscal 2007 (detailed in the table below), increased by $25.4
million or 60.8% to $67.2 million. Pro forma net income, using a 38.0%
normalized income tax rate, was $41.7 million for the fiscal year
ended June 30, 2007, an increase of 60.8% as compared to $25.9 million
for the prior year. Pro forma fully-diluted earnings per share were
$1.72 for the fiscal year ended June 30, 2007 compared to $1.38 for
the prior year.
Company Launches Internet Payday Loan Product in the U.S.
On August 31, 2007, the Company launched an internet based payday
loan product for California customers. Following a successful launch
in California, the Company intends to offer the product in selected
additional states.
Commenting on the product launch, Don Gayhardt, the Company's
President stated, "We intend to move forward on internet lending
products at a very measured pace, until we are certain of the loss
metrics. Assuming the measured launch in California meets our
expectations, we intend to expand the product into additional markets.
As the internet loan product is obviously in its early stage of
release, we will be in a better position to discuss our future plans
and anticipated earnings contribution as we gain more experience with
the product."
Guidance
The Company anticipates that several of the Canadian provinces
will establish their respective maximum borrowing rates and policies
for single-payment lending during fiscal 2008. Therefore, reflected in
the Company's guidance below is the expected opening of between 75 and
100 new stores in Canada in fiscal year 2008. The incremental new
store earnings drag and infrastructure investment, required to support
the enhanced Canadian de novo store plan, is expected to result in a
$3.0 million to $3.5 million unfavorable impact on pre-tax earnings in
fiscal 2008.
Effective Tax Rate
-- As a result of the negative impact in the U.S. business from
the transition from bank-funded installment loans to
company-funded loans, the effective tax rate for the Company
increased in the fourth quarter of fiscal 2007 to 42.1%.
Expected earnings growth in the U.S. business from
acquisitions, as well as from the recently launched loan
products, should result in a global effective tax rate in the
range of 39% to 41% for the balance of calendar year 2007 and
fiscal 2008.
Calendar Year 2007 Guidance
-- Positive trends in other areas of the global business, as well
as the anticipated earnings contribution of the recent
acquisition of the midwest U.S. financial services stores on
August 30, 2007, are expected to offset the additional
infrastructure costs and new store earnings drag associated
with the substantially enhanced store development plan in
Canada, as well as the near-term negative impact of
transitioning a portion of the U.S. loan portfolio from
bank-funded installment loans to company-funded loans. As a
result, the Company is reaffirming its previously announced
calendar year 2007 guidance of revenue between $450.0 million
and $460.0 million, Adjusted EBITDA of $127.0 million to
$132.0 million and income before income taxes of between $78.0
million and $80.0 million.
Fiscal Year 2008 Guidance
-- Considering the effects of the expected enhanced Canadian de
novo store expansion plan, for the June 30, 2008 fiscal year,
the Company is anticipating revenue between $470.0 million and
$490.0 million, Adjusted EBITDA of between $135.0 million and
$140.0 million and fully-diluted earnings per share of between
$2.05 and $2.20.
The reconciliation between Adjusted EBITDA and income before
income taxes is consistent with the historical reconciliation which is
presented at the end of this news release.
Investors Conference Call
Dollar Financial Corp will be holding an investor's conference
call on Monday, September 10, 2007 at 5:00 pm ET to discuss the
Company's results for the 2007 fiscal fourth quarter and year end.
Investors can participate in the conference by dialing 888-896-0863
(U.S. and Canada) or 973-582-2792 (International); use the
confirmation code "Dollar". Hosting the call will be Jeff Weiss,
Chairman and CEO, Don Gayhardt, President, and Randy Underwood,
Executive Vice President and CFO. For your convenience, the conference
call can be replayed in its entirety beginning at 7:00 pm Eastern Time
on September 10, 2007 through September 17, 2007. If you wish to
listen to the replay of this conference call, please dial 973-341-3080
and enter passcode "9164127".
The conference call will also be broadcast live through a link on
the Investor Relations page on the Dollar Financial web site at
http://www.dfg.com. Please go to the web site at least 15 minutes
prior to the call to register, download and install any necessary
audio software.
About Dollar Financial Corp
Dollar Financial Corp is a leading international financial
services company serving under-banked consumers. Its customers are
typically service sector individuals who require basic financial
services but, for reasons of convenience and accessibility, purchase
some or all of their financial services from the Company rather than
from banks and other financial institutions. To meet the needs of
these customers, the Company provides a range of consumer financial
products and services primarily consisting of check cashing,
short-term consumer loans, Western Union money order and money
transfer products, reloadable VISA(R) and MasterCard(R) branded debit
cards, electronic tax filing, bill payment services, and legal
document processing services.
At June 30, 2007, the Company's global store network consisted of
1,280 stores, including 902 company-operated financial services stores
and 110 franchised We The People legal document processing locations
in 30 states, the District of Columbia, Canada and the United Kingdom.
The financial services store network is the largest network of its
kind in each of Canada and the United Kingdom and the second-largest
network of its kind in the United States. The Company's customers,
many of whom receive income on an irregular basis or from multiple
employers, are drawn to the convenient neighborhood locations,
extended operating hours and high-quality customer service. The
Company's financial products and services, principally check cashing
and short-term consumer loan programs, provide immediate access to
cash for living expenses or other needs. For more information, please
visit the Company's website at www.dfg.com.
Forward Looking Statement
This news release contains forward looking statements, including
statements regarding the following: the Company's future results,
growth, guidance and operating strategy; the developing regulatory
environment in Canada; the impact of future development strategy, new
stores and acquisitions; and of the performance of new products and
services. These forward looking statements involve risks and
uncertainties, including risks related to the regulatory environment,
current and potential future litigation, the integration of acquired
stores, the performance of new stores, the implementation and results
of restructuring initiatives, the impact of recent debt financing
transactions, the results of certain ongoing income tax appeals, and
the effects of new products and services on the Company's business,
results of operations, financial condition, prospects and guidance.
There can be no assurance that the Company will attain its expected
results, successfully integrate any of its acquisitions, attain its
published guidance metrics, or that ongoing and potential future
litigation or that the various FDIC, Federal, state or foreign
legislative or regulatory activities affecting the Company or the
banks with which the Company does business will not negatively impact
the Company's operations. A more complete description of these and
other risks, uncertainties and assumptions is included in the
Company's filings with the Securities and Exchange Commission,
including those described under the heading "Risk Factors" in the
final prospectus from the Company's follow-on public offering filed
with the SEC on June 16, 2006 and its fiscal 2006 annual report on
Form-10K. You should not place any undue reliance on any
forward-looking statements. We disclaim any obligation to update any
such factors or to publicly announce results of any revisions to any
of the forward-looking statements contained herein to reflect future
events or developments.
DOLLAR FINANCIAL CORP
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, June 30,
---------- ----------
2006 2007
---------- ----------
Assets:
Cash and cash equivalents $ 120,221 $ 294,518
Restricted cash 80,750 1,014
Loans receivable, net:
Loans receivable 58,997 90,552
Less: Allowance for loan losses (5,365) (8,623)
---------- ----------
Loans receivable, net 53,632 81,929
Other consumer lending receivables, net 7,545 11,367
Prepaid expenses and other receivables 18,846 22,483
Deferred tax assets, net 185 4,545
Property and equipment, net 40,625 55,031
Goodwill and other intangibles, net 218,566 341,681
Debt issuance costs and other assets, net 11,455 21,051
---------- ----------
Total Assets $ 551,825 $ 833,619
========== ==========
Liabilities:
Accounts payable $ 23,438 $ 39,808
Foreign income taxes payable 10,963 11,293
Accrued expenses and other liabilities 39,895 46,912
Deferred tax liability 4,539 12,713
Revolving credit facilities 39,000 -
Long-term debt 272,037 576,910
---------- ----------
Total Liabilities 389,872 687,636
---------- ----------
Shareholders' Equity:
Common stock 23 24
Additional paid-in capital 242,594 251,460
Accumulated deficit (114,920) (147,123)
Accumulated other comprehensive income 34,256 41,622
---------- ----------
Total shareholders' equity 161,953 145,983
---------- ----------
Total Liabilities and Shareholders' Equity $ 551,825 $ 833,619
========== ==========
DOLLAR FINANCIAL CORP
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except share and per share amounts)
Three Months Ended Twelve Months Ended
June 30, June 30,
------------------------- -------------------------
2006 2007 2006 2007
------------ ------------ ------------ ------------
Revenues:
Check cashing $ 36,611 $ 44,164 $ 142,470 $ 166,754
Consumer lending:
Fees from
consumer lending 43,913 61,626 162,588 227,445
Provision for
loan losses and
adjustment to
servicing
revenue (7,494) (13,153) (30,367) (45,799)
------------ ------------ ------------ ------------
Consumer lending,
net 36,419 48,473 132,221 181,646
Money transfer
fees 4,525 5,647 17,205 20,879
Other 9,375 10,776 36,625 40,654
------------ ------------ ------------ ------------
Total revenues 86,930 109,060 328,521 409,933
------------ ------------ ------------ ------------
Store and regional
expenses:
Salaries and
benefits 28,533 34,766 106,823 129,522
Occupancy 7,530 8,462 27,914 32,270
Depreciation 2,324 2,673 7,834 9,455
Returned checks,
net and cash
shortages 2,799 3,999 11,883 15,295
Telephone
and
telecommunication 1,529 1,691 5,800 6,425
Advertising 1,432 1,488 8,197 9,034
Bank charges and
armored carrier
services 2,230 2,949 8,844 10,619
Other 9,600 11,190 34,300 42,441
------------ ------------ ------------ ------------
Total store and
regional expenses 55,977 67,218 211,595 255,061
------------ ------------ ------------ ------------
Store and regional
margin 30,953 41,842 116,926 154,872
------------ ------------ ------------ ------------
Corporate and other
expenses:
Corporate expenses 10,749 13,962 41,784 53,594
Other depreciation
and amortization 966 859 3,655 3,390
Interest expense,
net 7,457 8,391 29,702 31,462
Ligation
settlement costs
(proceeds) 0 0 5,800 (3,256)
Debt financing
costs 0 932 0 39,335
Goodwill
impairment and
other charges 0 (163) 0 24,301
Other, net 788 107 1,506 514
------------ ------------ ------------ ------------
Income before
income taxes 10,993 17,754 34,479 5,532
Income tax
provision 9,054 7,473 27,514 37,735
------------ ------------ ------------ ------------
Net income (loss) $ 1,939 $ 10,281 $ 6,965 ($32,203)
============ ============ ============ ============
Net income (loss)
per share:
Basic $ 0.10 $ 0.43 $ 0.38 ($1.37)
Diluted $ 0.10 $ 0.42 $ 0.37 ($1.37)
Weighted average
shares
outstanding:
Basic 18,809,934 23,821,685 18,280,131 23,571,203
Diluted 19,496,744 24,546,758 18,722,753 23,571,203
DOLLAR FINANCIAL CORP
PRO FORMA NET INCOME
(EXCLUDING ONE-TIME CHARGES)
(In thousands except share and per share amounts)
Three Months Ended Twelve Months Ended
June 30, June 30,
-------------------------- --------------------------
2006 2007 2006 2007
----------- ------------ ----------- ------------
Income before
income taxes -
as reported $ 10,993 $ 17,754 $ 34,479 $ 5,532
One-time
Charges:
Litigation
settlement
costs
(proceeds) - - 5,800 (3,256)
Debt
financing
costs - 932 - 39,335
Goodwill
impairment
and other
charges - (163) - 24,301
Loss on store
closings 788 322 1,506 964
Other items - 79 - 302
----------- ------------ ----------- ------------
Pro forma income
before income
taxes 11,781 18,924 41,785 67,178
Pro forma income
taxes (38%
effective tax
rate) 4,477 7,191 15,878 25,528
----------- ------------ ----------- ------------
Pro forma net
income $ 7,304 $ 11,733 $ 25,907 $ 41,650
=========== ============ =========== ============
Weighted average
fully-diluted
shares
outstanding 19,496,744 24,546,758 18,722,753 24,192,918
=========== ============ =========== ============
Actual fully-
diluted
earnings (loss)
per share $ 0.10 $ 0.42 $ 0.37 $ (1.37)
=========== ============ =========== ============
Pro forma fully-
diluted
earnings per
share $ 0.37(1)$ 0.48 $ 1.38(1)$ 1.72
=========== ============ =========== ============
(1) Computed on lesser number of fully-diluted shares outstanding.
Adjusted EBITDA Reconciliation
Adjusted EBITDA is not an item prepared in accordance with GAAP.
Adjusted EBITDA is earnings before interest expense, income tax
provision, depreciation, amortization, charges related to
non-qualified stock options and restricted shares, and other items
described below. Dollar presents Adjusted EBITDA as an indication of
operating performance and its ability to service its debt and capital
expenditure requirements. Adjusted EBITDA does not indicate whether
Dollar's cash flow will be sufficient to fund all of its cash needs.
Adjusted EBITDA should not be considered in isolation or as a
substitute for net income, cash flows from operating activities, or
other measures of operating performance or liquidity determined in
accordance with GAAP. Dollar believes that Adjusted EBITDA amounts
should be considered by prospective investors because Dollar uses them
as one means of analyzing its ability to service its debt and capital
expenditure requirements, and Dollar understands that they are used by
some investors as one measure of a Company's historical ability to
service its debt and capital expenditure requirements. Not all
companies calculate Adjusted EBITDA in the same fashion, and therefore
these amounts as presented may not be comparable to other similarly
titled measures of other companies. The table below reconciles income
before income taxes as reported on Dollar's Unaudited Consolidated
Statements of Operations to Adjusted EBITDA (dollars in thousands):
Three Months Ended Twelve Months Ended
June 30, June 30,
-------------------- --------------------
2006 2007 2006 2007
--------- ---------- --------- ----------
Income before income taxes $ 10,993 $ 17,754 $ 34,479 $ 5,532
Add:
Depreciation and
amortization 3,290 3,532 11,489 12,845
Interest expense 7,457 8,391 29,702 31,462
Foreign currency loss 112 399 733 886
Stock compensation expense 125 758 205 2,365
Litigation settlement
costs (proceeds) - - 5,800 (3,256)
Debt financing costs - 932 - 39,335
Goodwill impairment and
other charges - (163) - 24,301
Loss on store closings &
other 788 401 1,506 1,265
--------- ---------- --------- ----------
Adjusted EBITDA $ 22,765 $ 32,004 $ 83,914 $ 114,735
========= ========== ========= ==========
Dollar Financial Corp
Unaudited Store Data
Three Months Ended Twelve Months Ended
June 30, June 30,
------------------- -------------------
2006 2007 2006 2007
--------- --------- --------- ---------
Beginning Company-Operated
Stores
U.S. 341 352 347 338
Canada 233 348 214 242
U.K. 162 190 152 172
WTP 22 0 3 13
--------- --------- --------- ---------
Total Beginning Company-
Operated Stores 758 890 716 765
--------- --------- --------- ---------
De novo Store Builds
U.S. 1 0 4 4
Canada 9 12 18 36
U.K. 3 0 12 12
WTP 0 0 0 0
--------- --------- --------- ---------
Total 13 12 34 52
--------- --------- --------- ---------
Acquired Stores
U.S. 0 0 0 24
Canada 0 0 11 82
U.K. 7 3 8 9
WTP 0 0 28 0
--------- --------- --------- ---------
Total 7 3 47 115
--------- --------- --------- ---------
Closed Stores
U.S. 4 2 13 16
Canada 0 0 1 0
U.K. 0 1 0 1
WTP 9 0 18 13
--------- --------- --------- ---------
Total 13 3 32 30
--------- --------- --------- ---------
Ending Company-Operated Stores
U.S. 338 350 338 350
Canada 242 360 242 360
U.K. 172 192 172 192
WTP 13 0 13 0
--------- --------- --------- ---------
Total Ending Company-
Operated Stores 765 902 765 902
--------- --------- --------- ---------
Ending Franchise Stores
U.S. 7 0 7 0
Canada 128 54 128 54
U.K. 218 214 218 214
WTP 132 110 132 110
--------- --------- --------- ---------
Total Ending Franchise
Stores 485 378 485 378
--------- --------- --------- ---------
Total Ending Store Count 1,250 1,280 1,250 1,280
========= ========= ========= =========
Dollar Financial Corp
Unaudited Selected Statistical Data
Three Months Ended Twelve Months Ended
June 30, June 30,
----------------------- -----------------------
2006 2007 2006 2007
----------- ----------- ----------- -----------
Check Cashing Data
(Consolidated)
Face amount of
checks cashed (in
millions) $ 969 $ 1,138 $ 3,772 $ 4,341
Number of checks
cashed (in
thousands) 2,099 2,296 8,373 9,004
Face amount of
average check $ 461 $ 496 $ 451 $ 482
Average fee per
check cashed $ 17.44 $ 19.23 $ 17.01 $ 18.52
Net write-offs of
returned checks (in
thousands) $ 2,321 $ 3,085 $ 9,982 $ 12,532
Net write offs as a
percentage of check
cashing revenue 6.3% 7.0% 7.0% 7.5%
Consumer Loan Data -
Originations
U.S. company-funded
consumer loan
originations $ 55,309 $ 78,729 $ 236,025 $ 282,364
Canadian company-
funded consumer
loan originations 149,760 243,373 554,949 827,535
U.K. company-funded
consumer loan
originations 52,196 79,137 204,220 269,779
----------- ----------- ----------- -----------
Total company-
funded consumer
loan
originations $ 257,265 $ 401,239 $ 995,194 $1,379,678
=========== =========== =========== ===========
Consumer Loan Data -
Net Revenues
U.S. servicing
revenues $ 6,818 $ 4,388 $ 22,673 $ 29,245
U.S. company-funded
consumer loan
revenues 9,071 12,161 37,814 44,366
Canadian company-
funded consumer
loan revenues 19,613 32,903 69,999 110,010
U.K. company-funded
consumer loan
revenues 8,410 12,174 32,102 43,824
Provision for loan
losses and
adjustments to
servicing revenues (7,493) (13,153) (30,367) (45,799)
----------- ----------- ----------- -----------
Total consumer
lending
revenues, net $ 36,419 $ 48,473 $ 132,221 $ 181,646
=========== =========== =========== ===========
Consumer Loan Net
Charge-offs
Gross charge-offs of
company-funded
consumer loans $ 28,413 $ 47,358 $ 107,208 $ 160,077
Recoveries of
company-funded
consumer loans (22,550) (33,437) (85,719) (123,861)
----------- ----------- ----------- -----------
Net charge-offs
on company-
funded consumer
loans $ 5,863 $ 13,921 $ 21,489 $ 36,216
=========== =========== =========== ===========
Gross charge-offs of
company-funded
consumer loans as a
percentage of total
company-funded
consumer loan
originations 11.0% 11.8% 10.8% 11.6%
Recoveries of
company-funded
consumer loans as a
percentage of total
company-funded
consumer loan
originations 8.8% 8.3% 8.6% 9.0%
Net charge-offs on
company-funded
consumer loans as a
percentage of total
company-funded
consumer loan
originations 2.2% 3.5% 2.2% 2.6%
CONTACT: Dollar Financial Corp
by
Financial Dynamics
Mark McCall/Julie Prozeller
212-850-5600
SOURCE: Dollar Financial Corp
