OVERLAND PARK, Kan., May 26, 2017 (GLOBE NEWSWIRE) -- QC Holdings, Inc. (OTC PINK:QCCO) reported net income of $365,000 and revenues of $23.4 million for the quarter ended March 31, 2017. Net income totaled $1.2 million and revenues totaled $31.7 million for the quarter ended March 31, 2016.
Each quarter includes severance charges of approximately $200,000.
The decline in revenues during 2017 compared to 2016 was attributable to the third quarter 2016 store swap transaction, whereby the company acquired 33 branches operated in Illinois, Kansas, Missouri and Utah and sold its 98 branches operated in Alabama, Arizona, California, Mississippi and Ohio. Loan loss rates were lower in 2017 versus 2016 due to recoveries in the business-to-business portfolio and better-than-expected collections in the branches that were closed.
About QC Holdings, Inc.
Headquartered in Overland Park, Kansas, QC Holdings, Inc. is a leading provider of consumer loans in the United States and Canada. In the United States, QC offers various products, including single-pay, installment and title loans, check cashing, debit cards and money transfer services, through 267 branches in 14 states at March 31, 2017. In Canada, the company, through its subsidiary Direct Credit Holdings Inc., is engaged in short-term, consumer internet lending in various provinces.
Forward Looking Statement Disclaimer: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the company’s current expectations and are subject to a number of risks and uncertainties, which could cause actual results to differ materially from those forward-looking statements. These risks include (1) changes in laws or regulations or governmental interpretations of existing laws and regulations governing consumer protection or short-term lending practices, (2) uncertainties relating to the interpretation, application and promulgation of regulations under the Dodd-Frank Wall Street Reform and Consumer Protection Act, including the impact of proposed rulemaking by the Consumer Financial Protection Bureau (CFPB), (3) ballot referendum initiatives by industry opponents to cap the rates and fees that can be charged to customers, (4) uncertainties related to the examination process by the CFPB and indirect rulemaking through the examination process, (5) litigation or regulatory action directed towards us or the short-term consumer loan industry, (6) volatility in our earnings, primarily as a result of fluctuations in loan loss experience and closures of branches, (7) risks associated with our dependence on cash management banking services and the Automated Clearing House for loan collections, (8) negative media reports and public perception of the short-term consumer loan industry and the impact on federal and state legislatures and federal and state regulators, (9) changes in our key management personnel, (10) risks associated with owning and managing non-U.S. businesses, and (11) other various risks. QC will not update any forward-looking statements made in this press release to reflect future events or developments.
(Financial and Statistical Information Follows)
|QC Holdings, Inc.|
|Consolidated Condensed Statements of Income|
|(in thousands, except per share amounts)|
|Consumer loan interest and fees||$||29,209||$||21,157|
|Provision for losses||7,242||3,270|
|Corporate and Regional expenses||6,530||6,269|
|Other expense, net||113||819|
|Income from continuing operations before income taxes||1,915||506|
|Provision for income taxes||693||141|
|Income per share:|
|Weighted average number of common shares outstanding:|
|QC Holdings, Inc.|
|Consolidated Condensed Balance Sheets|
|Cash and cash equivalents||$||16,660||$||25,862|
|Loans receivable, less allowance for losses of $9,836 at December 31, 2016 and $7,537 at March 31, 2017||32,586||25,848|
|Other current assets||6,500||3,923|
|Total current assets||57,611||57,499|
|Non-current loans receivable, less allowance for losses of $623 at December 31, 2016 and $331 at March 31, 2017||1,664||916|
|Property and equipment, net||6,039||5,997|
|Other assets, net||8,041||7,870|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Accounts payable and other current liabilities||$||10,420||$||9,420|
|Revolving credit facility||2,250||2,250|
|Total current liabilities||20,406||19,482|
|Total liabilities and stockholders’ equity||$||73,355||$||72,282|
|QC Holdings, Inc.|
|Consolidated Condensed Statements of Cash Flows|
March 31, 2016
|Quarter Ended |
March 31, 2017
|Adjustments to reconcile net income to net cash||9,514||4,202|
|Changes in assets and liabilities||(3,695||)||5,441|
|Net repayment of borrowings||(6,250||)|
|Effect of exchange rate changes on cash and cash equivalents||208||31|
|Net increase in cash and cash equivalents||563||9,202|
|Cash and cash equivalents at beginning of year||16,115||16,660|
|Cash and cash equivalents at end of period||$||16,678||$||25,862|
Contact: Douglas E. Nickerson (913-234-5154) Chief Financial Officer
Source: QC Holdings