QC Holdings, Inc. (NASDAQ: QCCO) reported income from continuing operations of $5.0 million and revenues of $47.0 million for the quarter ended March 31, 2012. For the three months ended March 31, 2011, income from continuing operations totaled $5.3 million and revenues were $45.8 million.
“Our first quarter results were mixed,” said QC Chairman and Chief Executive Officer Don Early. “Our revenues improved, primarily due to the inclusion of our new Canadian online lending subsidiary, but our losses increased largely as a result of a decline in the collection rate. Our field personnel again did an excellent job of managing expenses to align with the level of net revenue.
"We continue to focus on providing our customers with superior service and a broader spectrum of products and services. During first quarter 2012, we advanced nearly $500,000 across five states under our new long-term installment product."
The three months ended March 31, 2012 and 2011 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 ended March 31, 2012 and 2011 are provided below.
Revenues improved $1.2 million, or 2.6%, quarter-to-quarter, primarily due to the inclusion of fees and interest from the company’s Canadian online lending subsidiary (Direct Credit), which was acquired on September 30, 2011. The revenue increase attributable to Direct Credit was partially offset by lower revenues in the company’s automotive division. Payday and installment revenues in the company’s branches were essentially even compared to the three months ended March 31, 2011.
Operating costs, exclusive of loan losses, increased $655,000 (to $23.2 million) during the three months ended March 31, 2012 versus prior year's first quarter. Higher current year costs were largely as a result of the inclusion of Direct Credit, as well as typical annual rent increases.