QC Holdings, Inc. Reports Third Quarter 2016 Results

OVERLAND PARK, Kan., Nov. 18, 2016 (GLOBE NEWSWIRE) -- QC Holdings, Inc. (OTC PINK:QCCO) reported a net loss of $1.9 million and revenues of $29.6 million for the third quarter ended September 30, 2016. For the nine months ended September 30, 2016, net loss totaled $5.1 million and revenues were $90.5 million. For the three months ended September 30, 2015, net loss totaled $1.5 million and revenues were $34.5 million. Net loss totaled $1.4 million and revenues totaled $101.0 million for the nine months ended September 30, 2015.

The three months and nine months ended September 30, 2016 include charges of $1.6 million (approximately $1.0 million net of income taxes) in connection with recording additional loan loss reserve, severance and lease liability costs in connection with the closure of all of the company's branches in Washington, South Carolina and Virginia. The nine months ended September 30, 2016 include a charge of $2.7 million (approximately $1.7 million net of income taxes) due to a loan loss reserve for a business-to-business receivable and approximately $340,000 (approximately $206,000 net of income taxes) in severance and other costs. The three months and nine months ended September 30, 2015 include $1.5 million (approximately $900,000 net of income taxes) in accrued costs associated with a tentative settlement of an outstanding legal matter.

The decline in revenues during 2016 compared to 2015 reflects lower interest and fees from the company's consumer loan products due to competitive pressures as customers explore alternative loan products and distribution channels. In addition, revenues were affected by the third quarter 2016 store swap transaction, whereby the company acquired 33 branches operated in Illinois, Kansas, Missouri and Utah and sold its 98 branches operated in Alabama, Arizona, California, Mississippi and Ohio. Loan loss rates were higher in 2016 versus 2015 as a result of the business-to-business loan reserve, the additional loan loss reserve associated with the closed branches and an increase in losses during the transition and integration of the branches acquired in the store swap.

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