DFC Global Corp. (NASDAQ: DLLR), a leading international
diversified financial services company serving primarily unbanked
and under-banked consumers for over 30 years, today announced its
results for the fiscal second quarter ended December 31, 2011.
Fiscal 2012 Second Quarter Highlights
- Total consolidated revenue grew to a
record $263.4 million for the quarter, an increase of $80.9
million, or 44.3%, compared to the three months ended December 31,
2010. On a constant currency basis, total consolidated revenue
increased by $82.9 million, or 45.5%.
- Total consumer lending revenue
increased to $159.7 million for the quarter, representing an
increase of $60.4 million, or 60.8%, compared to the prior year’s
quarter. Revenue from internet-based loans grew to $61.9 million
for the quarter compared to $13.6 million for the three months
ended December 31, 2010.
- Total revenue from pawn lending
increased to $20.5 million for the three months ended December 31,
2011 compared to $7.3 million for the prior year’s quarter. Pawn
lending represented 7.8% of total consolidated revenue for the
three months ended December 31, 2011 compared to 4.0% for the prior
year’s quarter.
- Consolidated adjusted EBITDA was a
record $74.6 million for the three months ended December 31, 2011,
representing an increase of $21.7 million, or 41.0%, compared to
the prior year’s quarter, while also increasing by $22.3 million,
or 42.2%, on a constant currency basis during the same period.
- Diluted operating earnings per share
was a record $0.51 for the fiscal 2012 second quarter compared to
$0.37 for the second quarter of the prior fiscal year, representing
an increase of 37.8%.
Discussion on Presentation of Information
The average value of the U.S. Dollar strengthened in relation to
the Canadian Dollar and British Pound Sterling during the quarter,
as compared to the prior year period, with the average values of
both the Canadian and British currencies decreasing approximately
1% relative to the U.S. Dollar. Consequently, fluctuations in
currency rates had a moderate unfavorable impact on year-over-year
comparisons of the Company’s consolidated financial results; and as
a result, the Company is providing some country comparisons on a
constant currency basis.
However, when compared to the three months ended September 30,
2011, the average value of the U.S. Dollar was substantially
stronger in relation to the Canadian Dollar, with the average value
of the Canadian currency decreasing approximately 4% relative to
the U.S. Dollar during the three months ended December 31, 2011. In
addition, the average value of the British Pound Sterling decreased
approximately 2% on a sequential quarter basis when measured
against the U.S. Dollar.
Fiscal 2012 Second Quarter Overview
Commenting on the second quarter, Jeff Weiss, the Company’s
Chairman and Chief Executive Officer, stated, “I am pleased to
announce another quarter of record results for our Company despite
recent headwinds in currency exchange rates. Total consolidated
revenue for the quarter increased by 44.3% to a record $263.4
million, while total adjusted EBITDA increased by 41.0% to a record
$74.6 million. Including the acquisition of the Risicum and MEM
internet lending businesses, total consumer lending revenue
increased by 60.8%, or $60.4 million, over the prior year’s
quarter. Moreover, revenue derived from internet lending in the
United Kingdom, Scandinavia and Canada, which is our fastest
growing product, grew to a combined $61.9 million for the quarter
compared to $13.6 million for the three months ended December 31,
2010.”
Jeff Weiss continued, “Growth in the internet lending business
continues to be driven by the strong performance of the Express
Finance, MEM and Risicum businesses we acquired in the United
Kingdom and Scandinavia. These businesses continue to exceed our
expectations and are attracting a new and slightly younger
demographic, as compared to our storefront locations. The strong
performance of these acquisitions is buttressed by our long-time
strategy to retain the key management personnel of the businesses
we acquire, as they know these businesses and markets very well,
and our policy to deploy integration teams for an extended period
of time to maintain strong corporate oversight and a seamless
transition.
Our second fastest growing product, secured pawn lending,
contributed $20.5 million of revenue during the quarter, nearly
tripling the $7.3 million of revenue for the three months ended
December 31, 2010. The total pawn loan book for the U.K. and
Scandinavia combined, which includes the acquisition of the Sefina
Scandinavian pawn lending business in December 2010, was $144.1
million at the end of the quarter compared to $113.3 million as of
December 31, 2010. Due to the high carat value of gold jewelry
typically pawned in Europe, the total pawn loan book for our now 31
stores in Sweden and Finland, which includes the opening of three
de novo stores during the second quarter, was a robust $75.0
million as of December 31, 2011. Pawn lending, which represented
7.8% of our total Company revenue for the quarter, nicely fits with
our strategy to offer loans in markets with long-established and
strong product regulations.”
Jeff Weiss continued, “Through our industry associations in the
United Kingdom and Canada, we continue to nurture a strong working
relationship with the regulatory agencies in each country, who have
both publicly acknowledged the need for our industry and their
desire to promote a healthy and fair business environment.
Currently, our industry association is working with the Office of
Fair Trading in the United Kingdom to discuss policies and best
practices with respect to debt collection procedures and
methodologies. As a result of the substantial growth in our foreign
operations, pay-based lending in the U.S. now comprises less than
7% of our total revenue, a relatively small component of our
profits. Moreover, most of our U.S. pay-based lending activities
are centered in California and Florida, two states which already
have some of the most progressive product regulations in the
country.”
Jeff Weiss continued, “As the ALICE (asset limited, income
constrained, employed) demographic continues to grow around the
world, we continue to make investments this fiscal year to enhance
our management team and technology infrastructure, in order to
support the future expansion of our global enterprise into new
countries and product lines. For example, we recently established a
second headquarters in the United Kingdom, in London, to oversee
the development and expansion of our pawn lending business
throughout Europe. This group will manage the integration of all
future pawn store acquisitions and de novo store development in
Europe outside of the United Kingdom, and will provide management
oversight and direction to these businesses post-acquisition. In
addition, the recent deployment of the most advanced automated
dialer technology across our business units should enable more
efficient customer contact resulting in stronger customer
relationships and better debt collections management.”
Fiscal 2012 Second Quarter Business Update
Total consolidated revenue in the United Kingdom increased by
£37.3 million, or 89.2%, for the quarter compared to the three
months ended December 31, 2010. Consumer lending revenue grew by
£30.5 million, or 129.6%, for the three months ended December 31,
2011, compared to the second quarter of the prior fiscal year,
reflecting additional revenue from the Company’s internet lending
businesses, as well as continued strong performance and growth of
our store-based business. Same store sales in the U.K. with respect
to consumer lending, which considers stores that were open for at
least fifteen months, increased by 27.7% this quarter. Revenue from
internet lending in the United Kingdom, which was bolstered by the
acquisition of the MEM internet lending business in April 2011,
increased to £33.2 million for the quarter ended December 31, 2011,
compared to £8.5 million for the prior year’s fiscal second
quarter. The U.K. pawn lending business contributed £6.9 million of
total revenue for the quarter, representing growth of 51.2% over
the prior year period. Additionally, the Company opened 19 new
stores in the U.K. during the quarter, which amounts to 75 new
store openings over the past twelve months.
Total consolidated revenue in Canada increased by C$5.9 million,
or 7.5%, over the prior year’s quarter. Consumer lending revenue
increased by C$3.3 million, or 7.7%, during the fiscal second
quarter, while the newly developed internet lending channel in
Canada generated C$1.1 million of total revenue for the quarter,
which should increase each successive quarter as the Company
further expands this product into additional provinces. Debit card
sales in Canada increased by 67.9% for the quarter as a result of
an increased focus on customer loyalty programs.
With respect to Scandinavia, the Sefina pawn lending business
contributed $9.5 million of total revenue and $3.8 million of
adjusted EBITDA for the three months ended December 31, 2011.
During the quarter, the Company opened two new Sefina pawn lending
stores in Sweden and one new store in Finland. Risicum, the
internet and telephony based lending business operating in Sweden
and Finland, which the Company acquired in July 2011, contributed
$8.9 million of revenue and $3.4 million of EBITDA during the
quarter.
The consolidated loan loss provision, expressed as a percentage
of gross consumer lending revenue, was 19.7% for the quarter ended
December 31, 2011 compared to 20.2% for the three months ended
September 30, 2011, and represents an aggregation of both
store-based loans and a rapidly growing proportion of internet
loans in the United Kingdom, Scandinavia and Canada. Internet loans
typically carry higher loan losses, but with significantly lower
fixed operating costs than the Company’s existing store-based
businesses in those countries. Looking to the future, and
considering the anticipated continued growth of the Company’s
global internet lending business in relation to its store-based
businesses, the Company expects the consolidated loan loss
provision, expressed as a percentage of lending revenue, to
increase moderately on a quarterly basis, but with overall profit
margins for the internet lending business comparable to the
existing store-based businesses. As a percentage of loan
originations or principal lent, the consolidated loan loss
provision for the quarter ended December 31, 2011 was 4.2%. As
always, the Company is prepared to tighten or moderately loosen its
lending criteria if the global economies deteriorate or expand,
respectively, as it has successfully done in previous periods.
Fiscal 2012 Second Quarter Financial Results
For the three months ended December 31, 2011, the Company
incurred $7.4 million of net one-time gains, principally related to
an $8.6 million net unrealized, non-cash mark-to-market valuation
gain on the Company’s debt and legacy cross-currency interest rate
swap agreements, offset in part by $1.0 million of acquisition
related costs. Including these net one-time gains, income before
income taxes on a GAAP basis was $38.3 million for the quarter
compared to income before income taxes of $30.5 million for the
second quarter of the previous fiscal year. Also reflecting the net
one-time gains, the effective income tax rate for the three months
ended December 31, 2011 was 31.6%, resulting in reported net income
of $26.2 million compared to net income of $20.0 million for the
second quarter of the previous fiscal year. Likewise, diluted
earnings per share on a GAAP basis was $0.58 for the fiscal 2012
second quarter, compared to diluted earnings of $0.53 per share for
the second quarter of the previous fiscal year.
With respect to operating earnings for the second quarter,
excluding the net non-recurring gains for the quarter, the non-cash
interest expense resulting from the adoption of ASC 470-20, and the
non-cash amortization associated with the legacy cross-currency
interest rate swap agreements, pro forma income before income taxes
was $34.8 million for the quarter, an increase of 62.6% compared to
$21.4 million for the three months ended December 31, 2010.
Considering a pro forma effective income tax rate from operations
of 34.0%, diluted operating earnings per share was $0.51 for the
fiscal 2012 second quarter compared to $0.37 for the second quarter
of the previous fiscal year, representing an increase of 37.8%. A
table reconciling pro forma income before income taxes and diluted
operating earnings per share to GAAP basis income before income
taxes and GAAP basis diluted earnings per share is included on page
11 of this News Release.
Company Liquidity
As of December 31, 2011, the Company’s long-term debt structure
principally consisted of a $44.8 million tranche of U.S. senior
convertible notes due 2027 and a $120.0 million tranche of U.S.
senior convertible notes due 2028. The Company has a $600.0 million
tranche of senior unsecured notes that are not due until December
2016. In addition, there is a SEK 185 million (~$26.9 million) term
loan in Sweden due July 2013, which the Company is looking to
extend. Thus, the Company anticipates there will be no mandatory
debt principal payment obligations until potentially the first put
date of December 2012 for the $44.8 million tranche of U.S. senior
convertible notes, followed by April 2015, for the $120.0 million
tranche of U.S. senior convertible notes.
As of December 31, 2011, the Company had drawn $154.3 million of
its $200.0 million global revolving credit facility. Furthermore,
as of December 31, 2011, the Company had drawn £5.3 million of its
£7.0 million credit facility in the United Kingdom, and had drawn
SEK 260.0 million and EUR 16.0 million of its total SEK 325.0
million and EUR 17.5 million credit facilities in Scandinavia, in
order to fund the growth of the U.K. business and growth of the
pawn pledge book in Scandinavia, respectively.
Fiscal Year 2012 Outlook
The significant strengthening of the U.S. currency during the
fiscal second quarter and the anticipated translation of the
Company’s substantial international financial results into U.S.
Dollars per GAAP for the remainder of the fiscal year, principally
in relation to the Canadian and United Kingdom currencies, is
expected to result in a drag on the Company’s operating earnings
for fiscal year 2012 of approximately $0.09 per diluted share.
Furthermore, also considering the additional investments in
management infrastructure and technology being made this fiscal
year to support future years’ growth, the Company is narrowing its
earnings guidance range for fiscal year 2012 to adjusted EBITDA of
between $300.0 million and $305.0 million compared to its previous
estimate of between $295.0 million and $310.0 million, and
operating diluted earnings per share, which excludes any one-time
charges or gains that may occur, the non-cash impact of ASC-470-20,
and the non-cash amortization associated with the legacy
cross-currency interest rate swap agreements, to between $2.05 and
$2.10 per share versus the Company’s previous estimate of between
$2.00 and $2.15 per diluted share. The operating earnings per share
guidance continues to assume an effective income tax rate from
operations of 34.0% and 46.0 million diluted shares
outstanding.
Investors Conference Call
The Company will be holding an investor’s conference call on
January 26, 2012 at 5:00 pm ET to discuss its results for the
fiscal second quarter ended December 31, 2011. Investors can
participate in the conference call by dialing (888) 200-2794 (U.S.
and Canada) or (973) 935-8766 (International); use the confirmation
code "Dollar”. Hosting the call will be Jeffrey A. Weiss, Chairman
and CEO, and Randy Underwood, Executive Vice President and CFO. For
your convenience, the conference call can be replayed in its
entirety beginning from two hours after the end of the call through
February 9, 2012. If you wish to listen to the replay of this
conference call, please dial (855) 859-2056 (U.S. and Canada) or
(404) 537-3406 (International) and enter passcode "40595536.”
The conference call will also be broadcast live through a link
on the Investor Relations page on the Company’s web site at
http://www.dfcglobalcorp.com. Please go to the web site at least 15
minutes prior to the call to register, download and install any
necessary audio software.
About DFC Global Corp.
DFC Global Corp. is a leading international diversified
financial services company serving primarily unbanked and
under-banked consumers and small business owners who, for reasons
of convenience and accessibility, purchase some or all of their
financial services from the Company rather than from banks and
other financial institutions. Through its approximately 1,300
retail storefront locations, multiple Internet websites and mobile
phone and other remote platforms, the Company provides a variety of
consumer financial products and services in seven countries across
North America and Europe—Canada, the United Kingdom, the United
States, Sweden, Finland, Poland and the Republic of Ireland. The
Company believes that its customers, many of whom receive income on
an irregular basis or from multiple employers, are drawn to the
range of financial services it offers, the convenience of its
products, the multiple ways in which they may conduct business with
the Company and its high-quality customer service.
The Company’s products and services, principally its short-term
single-payment consumer loans, secured pawn loans, check cashing
services and gold buying services, provide customers with immediate
access to cash for living expenses or other needs. The Company
strives to offer its customers additional high-value ancillary
services, including Western Union® money order and money transfer
products, foreign currency exchange, reloadable VISA® and
MasterCard® prepaid debit cards and electronic tax filing. In
addition to its core retail products, the Company also provides
fee-based services in the United States to enlisted military
personnel applying for loans to purchase new and used vehicles that
are funded and serviced under an exclusive agreement with a major
third-party national bank through the Company’s branded Military
Installment Loan and Education Services, or MILES®, program.
The Company’s networks of retail locations in Canada and the
United Kingdom are the largest of their kind by revenue in each of
those countries. The Company believes it is also the largest pawn
lender in Europe by revenue. At December 31, 2011, the Company’s
global retail operations consisted of 1,324 retail storefront
locations, of which 1,259 are company-owned stores, conducting
business primarily under the names Money Mart®, The Money Shop®,
Insta-Cheques®, mce®, Suttons and Robertson®, The Check Cashing
Store®, Sefina®, Helsingin PanttiSM, Optima® and MoneyNow!®. In
addition to its retail stores, the Company also offers
Internet-based short-term single-payment consumer loans in the
United Kingdom primarily under the brand names Payday Express® and
PaydayUK®, in Canada under the Money Mart name, and Finland and
Sweden primarily under the Risicum® and OK Money® brand names. For
more information, please visit the Company's website at
www.dfcglobalcorp.com.
Forward-Looking Statements
This news release contains forward-looking statements,
including, among other things, statements regarding the following:
pending or recent acquisitions and their expected benefits; the
Company’s future results, growth, guidance and operating strategy;
the global economy; the effects of currency exchange rates on
reported operating results; the regulatory environment in Canada,
the United Kingdom, the United States, Scandinavia and other
countries; the impact of future development strategy, new stores
and acquisitions; litigation matters; financing initiatives; and
the performance of new products and services. These forward-looking
statements involve risks and uncertainties, including risks related
to: the regulatory environments; current and potential future
litigation; the identification of acquisition targets; the
consummation of pending acquisitions, the integration and
performance of acquired stores and businesses; the performance of
new stores; the impact of debt and equity financing transactions;
the results of certain ongoing income tax appeals; the effects of
new products and services on the Company’s business, results of
operations, financial condition, prospects and guidance; and
uncertainties related to the effects of changes in the value of the
U.S. Dollar compared to foreign currencies. There can be no
assurance that the Company will attain its expected results,
successfully consummate pending acquisitions, successfully
integrate and achieve anticipated synergies from any of its
acquisitions, obtain acceptable financing, or attain its published
guidance metrics, or that ongoing and potential future litigation
or the various FDIC, Federal, state, Canadian, U.K., Scandinavia,
European Union, or other foreign legislative or regulatory
activities affecting the Company or the banks with which the
Company does business will not negatively impact the Company’s
operations. A more complete description of these and other risks,
uncertainties and assumptions is included in the Company’s filings
with the Securities and Exchange Commission, the Company’s annual
reports and Forms 10-Q and 10-K. You should not place any undue
reliance on any forward-looking statements. The Company disclaims
any obligation to update any such factors or to publicly announce
results of any revisions to any of the forward-looking statements
contained herein to reflect future events or developments.
Presentation of Information in this Press Release
In an effort to provide investors with additional information
regarding the Company’s results, the Company has also disclosed in
this press release the following information which management
believes provides useful information to investors:
- Selected local currency results (the
reported results for each country in their respective native
currencies).
- Constant currency results (the Company
calculates constant currency operating results by comparing current
period operating results with prior period operating results, with
both periods converted at the currency exchange rates for the prior
period).
- Pro forma operating results excluding
one-time and non-cash charges and credits and adjusted for pro
forma effective income tax rates.
DFC GLOBAL CORP. UNAUDITED
CONSOLIDATED BALANCE SHEETS (In millions) June
30, December 31, 2011 2011 Assets:
Cash and cash equivalents $ 189.0 $ 196.0 Consumer loans, net:
Consumer loans 176.8 206.6 Less: Allowance for loan losses
(14.9 ) (18.5 ) Consumer loans, net 161.9 188.1 Pawn loans
136.2 144.3 Loans in default, net 13.8 26.5 Prepaid expenses and
other current assets 69.7 68.0 Deferred tax assets, net 21.3 17.7
Property and equipment, net 100.0 108.7 Goodwill and other
intangibles, net 932.0 922.1 Debt issuance costs, net and other
assets 38.9 37.2
Total
Assets $ 1,662.8 $ 1,708.6
Liabilities: Accounts and income taxes payable $ 74.8 $ 59.5
Accrued expenses and other liabilities 162.8 149.6 Fair value of
derivatives 73.9 48.5 Deferred tax liability 53.8 56.1 Revolving
credit facilities and other short-term debt 95.7 186.3 Total
long-term debt 775.2 768.2
Total
Liabilities 1,236.2 1,268.2
Stockholders' Equity: Additional paid-in capital 469.2 475.0
Accumulated deficit (49.7 ) (25.6 ) Accumulated other comprehensive
income 7.6 (8.1 ) Total DFC Global Corp.
Stockholders' Equity 427.1 441.3 Non-controlling interest
(0.5 ) (0.9 ) Total Stockholders' Equity 426.6
440.4
Total Liabilities and Stockholders'
Equity $ 1,662.8 $ 1,708.6
DFC GLOBAL CORP.
UNAUDITED CONSOLIDATED STATEMENTS OF
OPERATIONS
(In millions except per share
amounts)
Three Months Ended Six Months Ended
December 31, December 31, 2010 2011
2010 2011 Revenues: Fees from consumer lending
$ 99.3 $ 159.7 $ 191.3 $ 316.7 Check cashing fees 36.8 34.7 72.0
70.9 Pawn service fees and sales 7.3 20.5 13.5 41.3 Purchased gold
sales 11.3 18.0 22.4 33.9 Money transfer fees 7.9 9.8 15.1 19.4
Other 19.9 20.7 42.4
42.8 Total revenues
182.5
263.4 356.7 525.0
Operating expenses: Salaries and benefits 42.8 54.2 83.5
108.0 Provision for loan losses 16.5 31.5 30.4 63.3 Occupancy costs
12.0 14.8 23.6 29.8 Advertising 5.9 14.0 11.7 28.0 Depreciation 3.9
5.8 7.5 11.4 Bank charges and armored carrier services 3.9 5.3 7.7
10.7 Maintenance and repairs 3.2 4.0 6.5 8.1 COGS - purchased gold
7.2 14.3 14.9 26.4 Other 17.2 23.9
32.6 47.4 Total operating expenses
112.6 167.8 218.4
333.1 Operating margin 69.9 95.6
138.3 191.9 Corporate and other
expenses: Corporate expenses 23.9 29.6 49.4 60.7 Interest expense,
net 21.9 24.2 43.5 48.7 Other depreciation and amortization 2.8 6.6
5.5 13.0 Unrealized foreign exchange (gain) loss (17.8 ) (12.3 )
(32.4 ) 30.1 (Gain) loss on derivatives not designated as hedges
10.8 8.1 24.6 (12.7 ) Reserve for (proceeds from) litigation
settlements (4.1 ) - (3.9 ) 4.0 Loss on store closings and other
1.9 1.1 2.7 1.1
Income before income taxes (incl. non-controlling interest)
30.5 38.3 48.9 47.0 Income tax provision 10.5
12.1 16.6 22.9 Net income $ 20.0
$ 26.2 $ 32.3 $ 24.1 Net income
per share Basic $ 0.55 $ 0.60 $ 0.89 $ 0.55 Diluted $ 0.53 $ 0.58 $
0.86 $ 0.53 Weighted average shares outstanding Basic 36.5
43.9 36.4 43.8 Diluted 37.9 45.2 37.6 45.6
Pro forma Net Income Reconciliation
Pro forma net income is not an item prepared in accordance with
GAAP. The Company defines pro forma net income as net income
adjusted to exclude one-time and non-cash charges and credits as
described below, and diluted operating earnings per share as pro
forma net income divided by weighted average diluted shares
outstanding. The Company presents pro forma net income and diluted
operating earnings per share as indications of its financial
performance excluding one-time and other net non-cash charges and
to show comparative results of its operations. Not all companies
calculate pro forma net income or diluted operating earnings per
share in the same fashion, and therefore these amounts as presented
may not be comparable to other similarly titled measures of other
companies. The table below reconciles income before income taxes as
reported on the Company’s Unaudited Consolidated Statements of
Operations to pro forma net income (dollars in millions) and
diluted operating earnings per share:
DFC GLOBAL CORP. PRO FORMA NET INCOME (excluding
one-time items & effects of ASC 470-20) (In millions
except per share amounts) Three Months
Ended Six Months Ended December 31,
December 31, 2010 2011
2010 2011 Income before income
taxes (incl. non-controlling interest) $ 30.5 $ 38.3 $ 48.9 $ 47.0
Pro forma adjustments: Non-cash interest on convertible debt
(ASC 470-20) 2.1 2.3 4.1 4.5 Unrealized foreign exchange (gain)
loss (17.8 ) (12.3 ) (32.4 ) 30.1 Non-cash impact of hedge
ineffectiveness 6.1 3.7 15.6 (21.8 ) Cross-currency swap
amortization 1.6 1.6 3.2 3.3 Reserve for (proceeds from) litigation
settlements (4.1 ) - (3.9 ) 4.0 Acquisition costs expensed 2.7 1.0
3.7 2.1 Other items, net 0.3 0.2
0.7 0.3 Pro forma income before income taxes
21.4 34.8 39.9 69.5 Pro forma income taxes (35% for 2010; 34% for
2011) 7.5 11.8 14.0
23.6 Pro forma net income $ 13.9 $ 23.0
$ 25.9 $ 45.9 Weighted average diluted
shares outstanding 37.9 45.2
37.6 45.6 Diluted operating earnings
per share $ 0.37 $ 0.51 $ 0.69 $ 1.01
Diluted GAAP earnings per share $ 0.53 $ 0.58
$ 0.86 $ 0.53
Adjusted EBITDA Reconciliation
Adjusted EBITDA is not a financial measure prepared in
accordance with GAAP. The Company defines Adjusted EBITDA as
earnings before interest expense, income tax provision,
depreciation and amortization, stock-based compensation expense,
loss on store closings, litigation settlements, and other items
described below. The Company presents Adjusted EBITDA as an
indication of operating performance, as well as its ability to
service its future debt and capital expenditure requirements.
Adjusted EBITDA does not indicate whether the Company’s cash flow
will be sufficient to fund all of its cash needs. Adjusted EBITDA
should not be considered in isolation or as a substitute for net
income, cash flows from operating activities, or other measures of
operating performance or liquidity determined in accordance with
GAAP. Not all companies calculate Adjusted EBITDA in the same
fashion, and therefore these amounts as presented may not be
comparable to other similarly titled measures of other companies.
The table below reconciles income before income taxes as reported
on the Company’s Unaudited Consolidated Statements of Operations to
Adjusted EBITDA (dollars in millions):
Three Months Ended Six Months
Ended December 31, December 31, 2010
2011 2010 2011
Income before income taxes (incl. non-controlling interest)
$ 30.5 $ 38.3 $ 48.9 $ 47.0 Add: Depreciation and
amortization 6.7 12.4 13.0 24.4 Interest expense, net 21.9 24.2
43.5 48.7 Stock based compensation expense 1.9 2.9 4.0 5.0
Unrealized foreign exchange (gain) loss (17.8 ) (12.3 ) (32.4 )
30.1 (Gain) loss on derivatives not designated as hedges 10.8 8.1
24.6 (12.7 ) Reserve for (proceeds from) litigation settlements
(4.1 ) - (3.9 ) 4.0 Acquisition costs expensed 2.7 1.0 3.7 2.1
Other items, net 0.3 - 0.5
- Adjusted EBITDA $ 52.9 $ 74.6
$ 101.9 $ 148.6
DFC GLOBAL CORP.
UNAUDITED STORE DATA
Three Months Ended Six Months Ended
December 31, December 31, 2010 2011
2010 2011 Beginning Company-Operated Stores
United States 321 311 325 312 Canada 403 458 403 455 United Kingdom
342 418 330 400 Poland 1 4 0 3 Sweden 0 16 0 16 Finland 0 12 0 12
Total Beginning Company-Operated Stores 1,067 1,219 1,058 1,198
De novo Store Builds United States 0 0 0 0 Canada 0 5
0 6 United Kingdom 16 19 30 38 Poland 0 3 1 4 Sweden 0 2 0 2
Finland 0 1 0 1 Total 16 30 31 51
Acquired Stores
United States 0 0 0 0 Canada 19 0 19 2 United Kingdom 1 15 1 15
Poland 0 0 0 0 Sweden 16 0 16 0 Finland 12 0 12 0 Total 48 15 48 17
Closed Stores United States 2 5 6 6 Canada 3 0 3 0
United Kingdom 0 0 2 1 Poland 0 0 0 0 Sweden 0 0 0 0 Finland 0 0 0
0 Total 5 5 11 7
Ending Company-Operated Stores
United States 319 306 319 306 Canada 419 463 419 463 United Kingdom
359 452 359 452 Poland 1 7 1 7 Sweden 16 18 16 18 Finland 12 13 12
13
Total Ending Company-Operated Stores 1,126
1,259 1,126 1,259 Ending
Franchise/Agent Stores U.S. 0 0 0 0 Canada 43 20 43 20 U.K. 57
45 57 45
Total Ending Franchise/Agent Stores 100
65 100 65 Total Ending Store
Count 1,226 1,324 1,226 1,324
Dfc Global Corp (MM) (NASDAQ:DLLR)
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From Apr 2024 to May 2024
Dfc Global Corp (MM) (NASDAQ:DLLR)
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From May 2023 to May 2024