QC Holdings, Inc. (NASDAQ: QCCO) reported income from continuing operations of $2.1 million and revenues of $43.7 million for the quarter ended June 30, 2012. For the six months ended June 30, 2012, income from continuing operations totaled $7.2 million and revenues were $89.6 million. For the three months and six months ended June 30, 2011, income from continuing operations totaled $356,000 and $5.7 million, respectively, and revenues were $42.7 million and $87.9 million, respectively. The three months and six months ended June 30, 2012 include a $739,000 gain resulting from the cash settlement of an expiring life insurance policy. The three months and six month ended June 30, 2011 include a $2.0 million expense resulting from the settlement of an outstanding legal matter. The three months and six months ended June 30, 2012 and 2011 also include discontinued operations relating to branches that were closed (or scheduled for closure) during each period. Schedules reconciling adjusted EBITDA to income from continuing operations for the three months and six months ended June 30, 2012 and 2011 are provided below. ** Second Quarter ** Revenues increased $1.0 million, or 2.3%, quarter-to-quarter. This improvement is attributable 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 payday loan revenues in the company’s US branches compared to the three months ended June 30, 2011. The bulk of the decline in US-based payday revenues is due to a new payday law in Illinois that became effective in March 2011. The new law imposes customer usage restrictions that negatively affect revenues and profitability. The Illinois law provided for an overlap of the previous lending approach with loans issued under the new law for a period of one year, thereby extending the time period over which the negative effects of the new law occurred. The state of Missouri also experienced lower payday revenues compared to prior year, which the company believes is attributable to customer uncertainty regarding the ongoing availability of the payday product given the well-publicized efforts of industry opponents to eliminate the product through a ballot referendum in November’s election.