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Dollar Financial Corp. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: February 9, 2012 04:57PM

Dollar Financial Corp. (DLLR) filed Quarterly Report for the period ended 2011-12-31. Dfc Global Corp has a market cap of $846.2 million; its shares were traded at around $19.24 with a P/E ratio of 10 and P/S ratio of 1.1.



Highlight of Business Operations:

Operating expenses were $167.8 million for the three months ended December 31, 2011 compared to $112.6 million for the three months ended December 31, 2010, an increase of $55.2 million or 49.1%. The impact of foreign currency fluctuations accounted for a decrease of $1.4 million. The primary increase in the current year’s operating expenses is related to new stores and acquisitions of approximately $49.6 million. On a constant currency basis and excluding the impacts of new stores and acquisitions, operating expenses increased by $7.0 million as compared to the prior year. For the three months ended December 31, 2011, total operating expenses increased to 63.7% of total revenue as compared to 61.7% of total revenue in the prior year. After adjusting for constant currency reporting and excluding the impacts of new stores and acquisitions, the percentage of total operating expenses as compared to total revenue was 60.9%.

Operating expenses were $333.1 million for the six months ended December 31, 2011 compared to $218.4 million for the six months ended December 31, 2010, an increase of $114.7 million or 52.5%. The impact of foreign currency fluctuations accounted for an increase of $5.1 million. There was an increase in the current year’s operating expenses related to new stores and acquisitions of approximately $92.4 million. On a constant currency basis and excluding the impacts of new stores and acquisitions, operating expenses increased by $17.2 million as compared to the prior year. For the six months ended December 31, 2011, total operating expenses increased to 63.4% of total revenue as compared to 61.2% of total revenue in the prior year. After adjusting for constant currency reporting and excluding the impacts of new stores and acquisitions, the percentage of total operating expenses as compared to total revenue was 61.1%.

Total revenues in Europe were $145.7 million for the three months ended December 31, 2011, compared to $68.4 million for the year earlier period, an increase of $77.3 million or 113.1%. The MEM, Sefina and Risicum acquisitions contributed $52.4 million of revenue for the three months ended December 31, 2011. On a constant currency basis and excluding the impact of new stores and acquisitions, year-over-year revenues in Europe increased by $16.0 million, or 23.5%. Consumer lending and pawn service fees were up by $11.2 million and $3.0 million, respectively. The growth in consumer lending revenue reflects strong performance from the internet lending business and also the continued robust performance of the store-based business. Other revenues (gold sales, money transfer fees, foreign exchange products and debit cards) increased by $3.3 million primarily as a result of increases in gold sales and money transfer fees. Check cashing revenues in Europe were impacted by the economic downturn and the gradual migration away from paper checks and decreased by approximately $1.5 million, or 18.4% (also on a constant currency basis and excluding new stores and acquisitions).

Total revenues in Europe were $288.2 million for the six months ended December 31, 2011, compared to $132.2 million for the year earlier period, an increase of $156.0 million or 118.1%. The MEM, Sefina and Risicum acquisitions contributed $101.3 million of revenue for the six months ended December 31, 2011. On a constant currency basis and excluding the impact of new stores and acquisitions, year-over-year revenues in Europe increased by $33.6 million, or 25.5%. Consumer lending and pawn service fees were up by $24.0 million and $6.9 million, respectively. The growth in consumer lending revenue reflects strong performance from the internet lending business and also the continued robust performance of the store-based business. Other revenues (gold sales, money transfer fees, foreign exchange products and debit cards) increased by $5.4 million as a result of increases in gold sales and money

Total revenues in Canada were $167.2 million for the six months ended December 31, 2011, an increase of 10.2%, or $15.5 million, as compared to the six months ended December 31, 2010. The impact of foreign currency rates and new stores and acquisitions accounted for $3.9 million and $12.9 million of this increase, respectively. Consumer lending revenues in Canada increased by $6.3 million or 7.4% (on a constant currency basis) for the six months ended December 31, 2011 as compared to the prior year, reflecting new customer growth from our television advertising campaigns designed to highlight our competitive pricing advantage to customers, and the acquisition of franchisee stores. Other revenues (gold sales, money transfer fees, foreign exchange products and debit cards) increased by $3.9 million (on a constant currency basis) as a result of increased money transfer fees and debit card fees. Check cashing revenues increased $1.4 million in Canada due to increases in the number of checks and the total value of checks cashed, up by 2.2% and 5.4%, respectively (also on a constant currency basis), primarily related to the acquired franchisee stores.

Read the The complete Report



Stocks Discussed: DLLR,
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