QC Holdings, Inc. (NASDAQ: QCCO) reported income from continuing operations of $34,000 and revenues of $44.2 million for the quarter ended June 30, 2011. For the six months ended June 30, 2011, income from continuing operations totaled $5.2 million and revenues were $90.5 million. The three months and six months ended June 30, 2011 include $2.0 million in accrued costs ($1.2 million, net of income taxes) resulting from a tentative settlement of an outstanding legal matter.
“Our second quarter experience reflects the typical seasonality of our business, with revenue and loss statistics consistent with historical expectations,” said QC Chairman and Chief Executive Officer Don Early. “While our payday revenues suffered in comparison to prior year’s second quarter, our other lending products and automotive revenues improved significantly, indicative of our ongoing efforts to broaden our revenue base.
“Our field personnel continue to adapt to the changing economic environment, as high unemployment lingers and consumer frustration burbles due to shrinking access to credit. Until these broader issues normalize, we remain focused on providing superior service to our existing customers throughout our branch network.”
Recently, the company reached a tentative settlement in the nearly five-year-old Missouri legal matter. Although the company believes the matter is without merit, this settlement reflects the company’s decision to mitigate the costs, including the distractions for management, associated with the purported class action arbitration.
For the three months and six months ended June 30, 2010, income from continuing operations totaled $1.8 million and $7.4 million, respectively, and revenues were $44.9 million and $91.7 million, respectively.
The three months and six months ended June 30, 2011 and 2010 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 six months ended June 30, 2011 and 2010 are provided below.