Free 7-day Trial
All Articles and Columns »

Dollar Financial Corp. Reports Operating Results (10-Q)

February 08, 2013 | About:
10qk

10qk

18 followers
Dollar Financial Corp. (DLLR) filed Quarterly Report for the period ended 2012-12-31.

Dfc Global Corp has a market cap of $822.443 million; its shares were traded at around $19.22 with a P/E ratio of 13.8889 and P/S ratio of 0.8097. Dfc Global Corp had an annual average earning growth of 17.4% over the past 5 years.
This is the annual revenues and earnings per share of DLLR over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of DLLR.


Highlight of Business Operations:

Total revenues in Europe were $172.5 million for the three months ended December 31, 2012, compared to $145.7 million for the three months ended December 31, 2011, an increase of $26.8 million or 18.4%. The impact of new stores and acquisitions accounted for $13.1 million of this increase. On a constant currency basis and excluding the impact of new stores and acquisitions, year-over-year revenues in Europe increased by $10.7 million, or 7.3%. Consumer lending revenue was up by $16.4 million (on a constant currency basis and excluding new stores and acquisitions) for the three months ended December 31, 2012, as compared to the three months ended December 31, 2011. The growth in consumer lending revenue reflects the growth of the Internet lending business and also the continued growth of the store-based business. Pawn service fees and sales decreased by $1.0 million (also on a constant currency basis and excluding new stores and acquisitions) for the three months ended December 31, 2012, as compared to the three months ended December 31, 2011. The decrease in pawn service fees and sales is primarily due to a decline in the price of gold which resulted in lower auction and scrap margins on unredeemed pawn pledges during the three months ended December 31, 2012. Other revenues (gold sales, money transfer fees, foreign exchange products and debit cards) decreased by $2.6 million, primarily as a result of a decrease in gold sales, partially offset by increased currency exchange revenues. Check cashing revenues in Europe were impacted by the gradual migration away from paper checks to debit cards and the economic downturn, and decreased by approximately $2.1 million, or 28.2% (also on a constant currency basis and excluding new stores and acquisitions).

Operating expenses in Europe increased by $24.4 million, or 24.4%, from $99.8 million for the three months ended December 31, 2011 to $124.2 million for the three months ended December 31, 2012. On a constant currency basis and excluding new stores and acquisitions, Europe operating expenses increased by $9.3 million or 9.3%. There was an increase of 1.2 pts relating to the provision for loan losses as a percentage of consumer lending revenues primarily due to the mix of lending products, including a greater mix of Internet-based loans. On a constant currency basis, the provision for loan losses as a percentage of consumer lending revenues for the three months ended December 31, 2011 was 24.8%, while for the three months ended December 31, 2012, the rate increased to 26.0%. On a constant currency basis, the operating margin percentage in Europe decreased from 31.5% for the three months ended December 31, 2011 to 28.0% for the three months ended December 31, 2012 primarily due to the increase in the provision for loan losses noted above, as well as increased salaries and benefits costs and advertising expense.

Operating expenses in Canada increased $1.8 million, or 4.3%, from $41.5 million for the three months ended December 31, 2011 to $43.3 million for the three months ended December 31, 2012. The impacts of changes in foreign currency rates resulted in an increase of $1.3 million. The constant currency increase of approximately $0.4 million is primarily related to costs associated with new stores, as well as an increase in the provision for loan losses, partially offset by a decrease in advertising expense. On a constant currency basis, provision for loan losses, as a percentage of loan revenues, increased by 1.0 pts from 10.8% to 11.8%. On a constant currency basis, Canada’s operating margin percentage increased from 49.8% for the three months ended December 31, 2011 to 50.2% for the three months ended December 31, 2012. The increase in this area is primarily the result of the decrease in advertising expense, partially offset by an increase in returned checks, net and cash shortages and the increase in the provision for loan losses noted above.

Total revenues in Europe were $332.5 million for the six months ended December 31, 2012, compared to $288.2 million for the six months ended December 31, 2011, an increase of $44.3 million or 15.4%. The impact of new stores and acquisitions accounted for $24.3 million of this increase. On a constant currency basis and excluding the impact of new stores and acquisitions, year-over-year revenues in Europe increased by $22.0 million, or 7.6%. Consumer lending revenue was up by $33.6 million (on a constant currency basis and excluding new stores and acquisitions) for the six months ended December 31, 2012, as compared to the six months ended December 31, 2011. The growth in consumer lending revenue reflects the growth of the Internet lending business and also the continued growth of the store-based business. Pawn service fees and sales decreased by $2.3 million (also on a constant currency basis and excluding new stores and acquisitions) for the six months ended December 31, 2012, as compared to the six months ended December 31, 2011. The decrease in pawn service fees and sales is primarily due to a decline in the price of gold which resulted in lower auction and scrap margins on unredeemed pawn pledges during the six months ended December 31, 2012. Other revenues (gold sales, money transfer fees, foreign exchange products and debit cards) decreased by $5.8 million, primarily as a result of a decrease in gold sales, partially offset by increased currency exchange revenues. Check cashing revenues in Europe were impacted by the gradual migration away from paper checks to debit cards and the economic downturn, and decreased by approximately $3.5 million, or 23.5% (also on a constant currency basis and excluding new stores and acquisitions).

Operating expenses in Europe increased by $41.8 million, or 21.2%, from $197.3 million for the six months ended December 31, 2011 to $239.1 million for the six months ended December 31, 2012. On a constant currency basis and excluding new stores and acquisitions, Europe operating expenses increased by $18.7 million or 9.5%. There was an increase of 1.6 pts relating to the provision for loan losses as a percentage of consumer lending revenues primarily due to the mix of lending products, including a greater mix of Internet-based loans. On a constant currency basis, the provision for loan losses as a percentage of consumer lending revenues for the six months ended December 31, 2011 was 25.2%, while for the six months ended December 31, 2012, the rate increased to 26.8%. On a constant currency basis, the operating margin percentage in Europe decreased from 31.5% for the six months ended December 31, 2011 to 28.1% for the six months ended December 31, 2012 primarily due to the increase in the provision for loan losses noted above, as well as increased salaries and benefits costs.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide