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OVERLAND PARK, Kan., Nov. 12, 2013 (GLOBE NEWSWIRE) -- QC Holdings, Inc. (Nasdaq:QCCO) reported income from continuing operations of $643,000 and revenues of $42.0 million for the quarter ended September 30, 2013. For the nine months ended September 30, 2013, income from continuing operations totaled $4.2 million and revenues were $117.2 million.
For the three months and nine months ended September 30, 2012, income from continuing operations totaled $1.8 million and $8.4 million, respectively, and revenues were $40.9 million and $115.2 million, respectively.
The three months and nine months ended September 30, 2013 and 2012 include discontinued operations relating to: i) the company's automotive segment and ii) branches that were closed during each period. Schedules reconciling adjusted EBITDA to income from continuing operations for the three months and nine months ended September 30, 2013 and 2012 are provided below.
** Third Quarter **
Revenues increased $1.1 million, or 2.7%, quarter-to-quarter, primarily due to higher fees and interest from the company's longer-term, higher-dollar installment products, which were introduced in early 2012, partially offset by reduced payday loan fees as a result of increased competition.
Branch operating costs, exclusive of loan losses, increased $349,000 (to $17.9 million) during the three months ended September 30, 2013 versus prior year's third quarter. This increase was primarily attributable to new marketing initiatives and higher bank-related charges.
Loan losses increased $4.1 million during the three months ended September 30, 2013, totaling $15.1 million versus $11.0 million in prior year's quarter. The loss ratio increased to 36.0% in third quarter 2013 versus 26.8% in third quarter 2012. The increase in the loss ratio is attributable to a higher rate of returned items in the current quarter versus prior year (54% in returned items as a percentage of revenues versus 41% in prior year's third quarter). This increase is related to the introduction of electronic collateralization of loans (in lieu of checks), the seasoning of the company's newer, higher-dollar installment products and the prolonged economic recovery.