The Cash Store Australia Holdings Inc. reports results for the three and six months ended December 31, 2012

The Cash Store Australia Holdings Inc. reports results for the three and six 
months ended December 31, 2012 
EDMONTON, Feb. 27, 2013 /CNW/ - The Cash Store Australia Holdings Inc. ("Cash 
Store Australia" or the "Company") (TSXV: AUC) today announced results for the 
three and six months ended December 31, 2012. 
The decline in revenue continued in the second quarter as a result of the 
Company's decision to cease brokering loans from March 17, 2012 to April 14, 
2012. Also during this period the sale of a key income producing product was 
put on hold until a complete review of its key features is undertaken. This 
review has now been completed. As a result of this action taken by the 
Company, a significant number of customers went elsewhere for their financial 
servicing needs and have not yet returned to do business with Cash Store 
Australia. The Company plans to introduce new loan products on March 1, 2013 
and a newly designed insurance product shortly thereafter. These product 
offerings are expected to help draw former customers back to Cash Store 
Australia's branches. The new products extend the loan term, increase the 
amount loaned and increase the number of payments required to repay the loan 
amount. 
To partially counteract the effect of the ensuing periods of the reduction in 
revenue, the Company reduced branch operating expenses by $1.1 million in the 
second quarter and by $1.8 million for the six months ended December 31, 2012 
compared to the same periods last 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 made significant improvements in the quarter ended December 31, 
2012 over the quarter ended September 30, 2012. The net loss for the quarter 
ended December 31, 2012 improved to $2.1 million from $2.9 million for the 
quarter ended September 30, 2012. The Company also made significant 
improvements in the six months ended December 31, 2012 over the six months 
ended June 30, 2012. The net loss for the six months ended December 31, 2012 
improved to $5.0 million from $8.4 million for the six months ended June 30, 
2012. 
Highlights for the second quarter: 


    --  Revenue of $2.1 million compared to $5.0 million for the same
        quarter last year.
    --  Net loss of ($2.1 million) compared to a net loss of ($1.5
        million) in the second quarter of fiscal 2012.
    --  Branch operating expenses reduced by $1.1 million in this
        quarter compared to the same quarter last year.
    --  Diluted loss per share of ($0.13) compared to a diluted loss
        per share of ($0.09) in the same quarter last year.
    --  Negative Adjusted EBITDA of ($1.8 million) compared to negative
        Adjusted EBITDA of ($1.1 million) in the same quarter last
        year.

Highlights for the six months ended December 31, 2012:
    --  Revenue of $3.9 million compared to $9.7 million for the same
        period last year.
    --  Net loss of ($5.0 million) compared to a net loss of ($3.0
        million) in the six months ended December 31, 2011.
    --  Branch operating expenses reduced by $1.8 million in this
        period compared to the same period last year.
    --  Diluted loss per share of ($0.31) compared to a diluted loss
        per share of ($0.18) in the same six month period last year.
    --  Negative Adjusted EBITDA of ($4.6 million) compared to negative
        Adjusted EBITDA of ($2.1 million) in the same six month period
        last year.

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 67 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               Six Months Ended
                                                   

Consolidated          December 31     December 31    December 31     December 31
results

(presented in
Canadian                    2012           2011            2012           2011
dollars)
    No. of branches           67             81              67             81
                                                                                

Revenue                                                                         

  Brokerage         $    2,008,298  $   4,476,714  $    3,672,715  $   8,641,387

  Other income             103,272        493,275         205,636      1,024,432

Total Revenue            2,111,570      4,969,989       3,878,351      9,665,819

Branch Expenses                                                                 

  Salaries and           1,563,155      2,424,900       3,196,370      4,791,895
  benefits

  Retention                 96,967      1,249,920         564,487      2,296,813
  payments

  Rent                     554,545        652,180       1,118,452      1,297,082

  Selling,
  general, and             345,714        510,474         658,662      1,015,735
  administrative

  Advertising              173,447        165,252         402,695        272,972
  and promotion

  Depreciation
  of property               49,007        153,312          99,377        323,408
  and equipment
                         2,782,835      5,156,038       6,040,043      9,997,905

Branch Operating         (671,265)      (186,049)     (2,161,692)      (332,086)
Income (Loss)
                                                                                

  Regional                 212,669        398,803         400,083        742,459
  expenses

  Corporate              1,122,265        785,961       2,221,982      1,458,417
  expenses

  Other
  depreciation               8,039         12,002          16,508         27,678
  and
  amortization

  Impairment of
  property and              98,087        148,797         111,985        449,592
  equipment

  Restructuring           (52,271)              -        (45,428)              -
  costs

  Interest                  90,148              -         140,048              -
  expense

  Foreign
  exchange loss           (15,766)       (49,104)          32,822         12,039
  (gain)

  EBITDA*              (1,987,242)    (1,317,194)     (4,783,759)    (2,671,186)

  Adjusted             (1,846,660)    (1,103,413)     (4,586,255)    (2,094,958)
  EBITDA*

Net loss            $  (2,134,436)  $ (1,482,508)  $  (5,039,692)  $ (3,022,271)

Weighted average                                                                
number of shares

  outstanding -         16,425,981     16,425,981      16,425,981     16,425,981
  basic

Basic and
Diluted loss per                                                                
share

  Net loss          $       (0.13)  $      (0.09)  $       (0.31)  $      (0.18)
                                                                                

Consolidated
Balance Sheet                                                                   
Information

Working capital     $ (20,039,973)  $ (8,140,567)  $ (20,039,973)  $ (8,140,567)

Total assets             2,231,440      3,517,981       2,231,440      3,517,981

Total long-term             80,181        177,188          80,181        177,188
liabilities

Total                   21,667,192      9,743,258      21,667,192      9,743,258
liabilities

Shareholders'       $ (19,435,752)  $ (6,225,277)  $ (19,435,752)  $ (6,225,277)
equity

* 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.





For further information on Cash Store Australia, please contact:

Bill Johnson, Chief Financial Officer (780) 732-5695; 
e-mail:b.johnson@csfinancial.ca

SOURCE: The Cash Store Australia Holdings Inc.

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CO: The Cash Store Australia Holdings Inc.
ST: Alberta
NI: FIN ERN 

-0- Feb/27/2013 22:00 GMT


 
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