Dollar Financial Posts 4Q Loss, Annual Profit Drop

BERWYN, Penn. (AP) — Dollar Financial Corp. said Thursday it posted a loss of $31.2 million in its fourth quarter annual profit down 97 percent as high unemployment hurt its consumer lending business and forced the company to close many of its financial services stores.

Dollar Financial said its full-year earnings fell to $1.8 million as it closed 114 stores in the U.S.

The results beat Wall Street estimates, however, and Dollar's stock rose 95 cents, or 5.7 percent, to $17.61 in after-hours trading.

The Berwyn, Penn.-based company's $31.2 million quarterly loss amounted to $1.30 per share, compared with profit of $12.3 million, or 50 cents per share, in the same period a year earlier.

Revenue fell 17.2 percent to $124.4 million for the three months that ended June 30, compared with the fourth quarter of 2008.

Dollar Financial's earnings include one-time charges of $57.5 million in legal expenses from a class-action lawsuit in Canada and $4.5 million related to severance payments and other expenses associated with closing stores.

Analysts surveyed by Thomson Reuters, who typically exclude one-time items from their forecasts, expected quarterly earnings of 33 cents per share on revenue of $121.4 million.

The company expects to earn $1.90 to $2.10 per share in fiscal 2010, excluding a special charge of 40 cents a share.

Its shares ended regular trading Thursday at $16.66, up 3 cents.