Dollar Financial Corp. (DLLR, Financial) filed Quarterly Report for the period ended 2010-12-31.
Dollar Financial Corp. has a market cap of $507.8 million; its shares were traded at around $20.51 with a P/E ratio of 11.7 and P/S ratio of 0.9. Hedge Fund Gurus that owns DLLR: Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors.
Total revenues for the three months ended December 31, 2010 increased by $21.8 million, or 13.6%, as compared to the three months ended December 31, 2009. The impact of foreign currency accounted for $0.8 million of the revenue increase with an additional increase of $13.9 million related to the impact of new stores and acquisitions. On a constant currency basis and excluding the impacts of new stores and acquisitions, total revenues increased by $7.1 million, or 4.4%. The increase was primarily the result of a $5.6 million and $4.1 million increase in revenues in Canada and Europe, respectively, primarily related to consumer lending, partially offset by a $2.3 million decrease in United States Retail revenues primarily related to the closure of 31 under-performing store locations since the second quarter of fiscal 2010.
Consolidated fees from consumer lending were $99.3 million for the three months ended December 31, 2010 compared to $82.7 million for the year earlier period, an increase of $16.6 million or 20.0%. The impact of foreign currency fluctuations accounted for an increase of approximately $0.4 million and the impact of new stores and acquisitions was an increase of $2.2 million. On a constant currency basis and excluding the impacts of new stores and acquisitions, consumer lending revenues increased by approximately $14.0 million. United States Retail consumer lending revenues were down approximately $1.5 million while consumer lending revenues in Canada and Europe were up by $2.5 million and $12.3 million, respectively (on a constant currency basis and excluding the impacts of new stores and acquisitions). Consumer lending revenues in the Other segment, which is almost entirely comprised of the results from our Polish lending operations, for the three months ended December 31, 2010 were approximately $2.4 million, compared to revenues of $1.8 million for the three months ended December 31, 2009.
Consolidated check cashing revenue decreased $1.8 million, or 4.6%, for the three months ended December 31, 2010 compared to the prior year period. There was an increase of approximately $0.5 million related to foreign exchange rates and increases from new stores and acquisitions of $1.0 million. The remaining check cashing revenues were down $3.3 million, or 8.4%, for the three months ended December 31, 2010, primarily attributable to our United States Retail business segment which decreased by 14.9%, again heavily influenced by the closure of stores since the second quarter of fiscal 2010. On a constant currency basis and excluding the impacts of new stores and acquisitions, the check cashing revenues in Canada declined 1.7% and check cashing revenues in Europe were down 13.9% for the three months ended December 31, 2010 as compared to the prior year, reflecting the effects of the continuing global economic downturn. Further, studies by the Federal Reserve Board and others suggest that payments made by electronic means may be displacing a portion of the paper checks traditionally cashed that could be impacting our check cashing business. On a consolidated constant currency basis, the face amount of the average check cashed increased by 0.6% to $494 for the three months ended December 31, 2010 compared to $491 for the prior year period, while the average fee per check cashed increased by 0.9% to $19.04. There was also a decline of 6.7% in the number of checks cashed for the three months ended December 31, 2010 as compared to the three months ended December 31, 2009, down from 2.0 million in the prior year period to 1.9 million in the current year.
Pawn service fees were $7.3 million for the three months ended December 31, 2010, representing an increase of $2.6 million, or 55.8%, compared to the prior year period. The impact of foreign currency fluctuations accounted for a nominal decrease of $0.2 million and increases of approximately $1.8 million related to the impact from new stores and acquisitions. The remaining increase of $1.0 million, or 21.8%, is primarily due to managements increased emphasis on promoting and growing our pawn business in Europe.
Operating expenses were $112.6 million for the three months ended December 31, 2010 compared to $100.1 million for the three months ended December 31, 2009, an increase of $12.5 million or 12.5%. On a constant currency basis, operating expenses were the same as the actual reported number. There was an increase in the current years operating expenses related to new stores and acquisitions of approximately $9.3 million. On a constant currency basis and excluding the impacts of new stores and acquisitions, operating expenses increased by $3.2 million as compared to the prior year. For the three months ended December 31, 2010, total operating expenses decreased to 61.7% of total revenue as compared to 62.3% 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 61.5%.
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Dollar Financial Corp. has a market cap of $507.8 million; its shares were traded at around $20.51 with a P/E ratio of 11.7 and P/S ratio of 0.9. Hedge Fund Gurus that owns DLLR: Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
On December 31, 2010, we consummated the acquisition of Sefina Finance AB, a Scandinavian pawn lending business with its headquarters in Stockholm, Sweden. Sefina provides pawn loans primarily secured by gold jewelry, diamonds and watches through its 16 retail store locations in Sweden and 12 retail store locations in Finland. The total cash consideration for the acquisition is estimated to be approximately $91.2 million, of which approximately $59.1 million was cash paid at closing. Additionally, approximately $14.9 million of additional cash is payable in equal installments on each of March 31, 2011, June 30, 2011 and September 30, 2011. Furthermore, we are obligated to pay the seller additional contingent consideration based on the financial performance of Sefina during each of the two successive 12 month periods following the closing of the acquisition estimated to be approximately $17.2 million.Total revenues for the three months ended December 31, 2010 increased by $21.8 million, or 13.6%, as compared to the three months ended December 31, 2009. The impact of foreign currency accounted for $0.8 million of the revenue increase with an additional increase of $13.9 million related to the impact of new stores and acquisitions. On a constant currency basis and excluding the impacts of new stores and acquisitions, total revenues increased by $7.1 million, or 4.4%. The increase was primarily the result of a $5.6 million and $4.1 million increase in revenues in Canada and Europe, respectively, primarily related to consumer lending, partially offset by a $2.3 million decrease in United States Retail revenues primarily related to the closure of 31 under-performing store locations since the second quarter of fiscal 2010.
Consolidated fees from consumer lending were $99.3 million for the three months ended December 31, 2010 compared to $82.7 million for the year earlier period, an increase of $16.6 million or 20.0%. The impact of foreign currency fluctuations accounted for an increase of approximately $0.4 million and the impact of new stores and acquisitions was an increase of $2.2 million. On a constant currency basis and excluding the impacts of new stores and acquisitions, consumer lending revenues increased by approximately $14.0 million. United States Retail consumer lending revenues were down approximately $1.5 million while consumer lending revenues in Canada and Europe were up by $2.5 million and $12.3 million, respectively (on a constant currency basis and excluding the impacts of new stores and acquisitions). Consumer lending revenues in the Other segment, which is almost entirely comprised of the results from our Polish lending operations, for the three months ended December 31, 2010 were approximately $2.4 million, compared to revenues of $1.8 million for the three months ended December 31, 2009.
Consolidated check cashing revenue decreased $1.8 million, or 4.6%, for the three months ended December 31, 2010 compared to the prior year period. There was an increase of approximately $0.5 million related to foreign exchange rates and increases from new stores and acquisitions of $1.0 million. The remaining check cashing revenues were down $3.3 million, or 8.4%, for the three months ended December 31, 2010, primarily attributable to our United States Retail business segment which decreased by 14.9%, again heavily influenced by the closure of stores since the second quarter of fiscal 2010. On a constant currency basis and excluding the impacts of new stores and acquisitions, the check cashing revenues in Canada declined 1.7% and check cashing revenues in Europe were down 13.9% for the three months ended December 31, 2010 as compared to the prior year, reflecting the effects of the continuing global economic downturn. Further, studies by the Federal Reserve Board and others suggest that payments made by electronic means may be displacing a portion of the paper checks traditionally cashed that could be impacting our check cashing business. On a consolidated constant currency basis, the face amount of the average check cashed increased by 0.6% to $494 for the three months ended December 31, 2010 compared to $491 for the prior year period, while the average fee per check cashed increased by 0.9% to $19.04. There was also a decline of 6.7% in the number of checks cashed for the three months ended December 31, 2010 as compared to the three months ended December 31, 2009, down from 2.0 million in the prior year period to 1.9 million in the current year.
Pawn service fees were $7.3 million for the three months ended December 31, 2010, representing an increase of $2.6 million, or 55.8%, compared to the prior year period. The impact of foreign currency fluctuations accounted for a nominal decrease of $0.2 million and increases of approximately $1.8 million related to the impact from new stores and acquisitions. The remaining increase of $1.0 million, or 21.8%, is primarily due to managements increased emphasis on promoting and growing our pawn business in Europe.
Operating expenses were $112.6 million for the three months ended December 31, 2010 compared to $100.1 million for the three months ended December 31, 2009, an increase of $12.5 million or 12.5%. On a constant currency basis, operating expenses were the same as the actual reported number. There was an increase in the current years operating expenses related to new stores and acquisitions of approximately $9.3 million. On a constant currency basis and excluding the impacts of new stores and acquisitions, operating expenses increased by $3.2 million as compared to the prior year. For the three months ended December 31, 2010, total operating expenses decreased to 61.7% of total revenue as compared to 62.3% 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 61.5%.
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