Net Income Decline For Payday Advance Company
By Paul RizzoPayday Loan Writer
QC Holdings, Inc., announced yesterday that the expenses related to its expansion during the last two years cut into net income in its second financial quarter.
In a release today before markets opened, the payday loan company based in Overland Park, Ks., reported net income of $296,000, or 1 cent a share, down from net income of $1.7 million, or 8 cents, a year ago at this time.
The company said second-quarter earnings were impacted by about $600,000 in fees related to discussions about a possible acquisition. Those talks were terminated, the Kansas City Star reports.
In the quarter, however, the payday loan firm showed revenue increasing by 10.2 percent to $39.8 million. On average, Wall Street expected earnings per share of 12 cents on revenue of $43.1 million. For the first half of 2006, QC Holdings reported net income of $2.8 million, down from $5.3 million a year ago. Revenue in the first half grew to $78.2 million from $69.6 million.
“We are pleased to see continued improvement in our net revenues quarter-to-quarter. We have focused on reducing losses during the last three quarters and believe we have a solid grasp on that aspect of our business,” QC Chairman and CEO Don Early said in a statement.
QC attributed the revenue growth to higher faxless payday loan volume, a factor reflected in the increases in the number of branches, as well as purely the number of customer transactions and average loan size.
Other important figures reported:
- QC reports it originated approximately $251 million of no fax payday loans during second quarter, up 7.4 percent from a year ago.
- The average payday cash loan, including fees, grew to $360.41 from $357.96 during the financial quarter.
- The average fees per loan, meanwhile, declined slightly from $53.57 a year ago to $53.21.
The company also reports that its board of directors has increased a stock repurchase program from $10 million to $20 million, and will be extending the program through June 30, 2007. The program had been set to expire as of December 31. To date, QC has repurchased approximately 750,000 shares of its common stock at a cost of approximately $9.5 million.
