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QC Holdings, Inc. (NASDAQ: QCCO) reported income from continuing operations of $4.2 million and revenues of $48.4 million for the quarter ended December 31, 2010. For the year ended December 31, 2010, income from continuing operations totaled $14.2 million and revenues were $188.1 million.
“Our fourth quarter experience mirrored the first three quarters, rounding out a year that posed significant earnings and operational hurdles associated with the negative effects of legislative changes in Washington, South Carolina, Arizona, Virginia and Kentucky,” said QC Chairman and Chief Executive Officer Don Early. “As we managed through these changes at the branch level, our field employees responded to the fluid environment in an energetic, professional and diligent manner.
“Throughout 2010, our management and employees worked to mitigate the significant revenue declines resulting from these law changes by minimizing operating expenses and improving losses. In addition, we closed, or discontinued operations in, 55 short-term lending branches that had little hope of long-term profitability.”
For the three months and year ended December 31, 2009, income from continuing operations totaled $4.9 million and $19.5 million, respectively, and revenues were $53.5 million and $207.0 million, respectively.
The three months and years ended December 31, 2010 and 2009 include discontinued operations relating to branches that were closed during each period. Schedules reconciling adjusted EBITDA to income from continuing operations for the three months and year ended December 31, 2010 and 2009 are provided below.
** Fourth Quarter **
Revenues decreased $5.1 million, or 9.5%, quarter-to-quarter. This decline is primarily due to reduced payday loan volumes resulting from unfavorable law changes effective January 1, 2010 in Washington and South Carolina that restrict customer access to payday loans and the June 30, 2010 termination of the payday loan law in Arizona. A $1.3 million improvement in automotive sales and interest revenues partially offset these declines.