OVERLAND PARK, Kan., May 26, 2017 (GLOBE NEWSWIRE) -- QC Holdings, Inc. (OTC PINK:QCCO) reported net income of $365,000 and revenues of $23.4 million for the quarter ended March 31, 2017. Net income totaled $1.2 million and revenues totaled $31.7 million for the quarter ended March 31, 2016.

Each quarter includes severance charges of approximately $200,000.

The decline in revenues during 2017 compared to 2016 was attributable to 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 lower in 2017 versus 2016 due to recoveries in the business-to-business portfolio and better-than-expected collections in the branches that were closed.

About QC Holdings, Inc. Headquartered in Overland Park, Kansas, QC Holdings, Inc. is a leading provider of consumer loans in the United States and Canada. In the United States, QC offers various products, including single-pay, installment and title loans, check cashing, debit cards and money transfer services, through 267 branches in 14 states at March 31, 2017. In Canada, the company, through its subsidiary Direct Credit Holdings Inc., is engaged in short-term, consumer internet lending in various provinces.

Forward Looking Statement Disclaimer:  This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the company's current expectations and are subject to a number of risks and uncertainties, which could cause actual results to differ materially from those forward-looking statements. These risks include (1) changes in laws or regulations or governmental interpretations of existing laws and regulations governing consumer protection or short-term lending practices, (2) uncertainties relating to the interpretation, application and promulgation of regulations under the Dodd-Frank Wall Street Reform and Consumer Protection Act, including the impact of proposed rulemaking by the Consumer Financial Protection Bureau (CFPB), (3) ballot referendum initiatives by industry opponents to cap the rates and fees that can be charged to customers, (4) uncertainties related to the examination process by the CFPB and indirect rulemaking through the examination process, (5) litigation or regulatory action directed towards us or the short-term consumer loan industry, (6) volatility in our earnings, primarily as a result of fluctuations in loan loss experience and closures of branches, (7) risks associated with our dependence on cash management banking services and the Automated Clearing House for loan collections, (8) negative media reports and public perception of the short-term consumer loan industry and the impact on federal and state legislatures and federal and state regulators, (9) changes in our key management personnel, (10) risks associated with owning and managing non-U.S. businesses, and (11) other various risks. QC will not update any forward-looking statements made in this press release to reflect future events or developments.

  (Financial and Statistical Information Follows)
 
QC Holdings, Inc.
Consolidated Condensed Statements of Income
(in thousands, except per share amounts)
(Unaudited)
 
 
  Quarter Ended March 31,
      2016     2017
Revenues        
Consumer loan interest and fees   $ 29,209   $ 21,157
Other     2,464     2,261
Total revenues     31,673     23,418
Provision for losses     7,242     3,270
Operating expenses     15,873     12,554
Gross profit     8,558     7,594
Corporate and Regional expenses     6,530     6,269
Other expense, net     113     819
Income from continuing operations before income taxes     1,915     506
Provision for income taxes     693     141
Net income   $ 1,222   $ 365
         
Income per share:        
Basic        
Net income   $ 0.07   $ 0.02
         
Diluted        
Net income   $ 0.07   $ 0.02
Weighted average number of common shares outstanding:        
Basic     17,333     17,333
Diluted     17,333     17,333

 
QC Holdings, Inc.
Consolidated Condensed Balance Sheets
(in thousands)
 
 
  December 31, 2016   March 31, 2017
ASSETS         (Unaudited)
Current assets      
Cash and cash equivalents $ 16,660   $ 25,862
Restricted cash   1,865     1,866
Loans receivable, less allowance for losses of $9,836 at December 31, 2016 and $7,537 at March 31, 2017   32,586     25,848
Other current assets   6,500     3,923
Total current assets   57,611     57,499
Non-current loans receivable, less allowance for losses of $623 at December 31, 2016 and $331 at March 31, 2017   1,664     916
Property and equipment, net   6,039     5,997
Other assets, net   8,041     7,870
Total assets $ 73,355   $ 72,282
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
Current liabilities      
Accounts payable and other current liabilities $ 10,420   $ 9,420
Revolving credit facility   2,250     2,250
Subordinated debt   7,736     7,812
Total current liabilities   20,406     19,482
       
Non-current liabilities   3,361     2,871
Total liabilities   23,767     22,353
       
Stockholders' equity   49,588     49,929
Total liabilities and stockholders' equity $ 73,355   $ 72,282

 
 
QC Holdings, Inc.
Consolidated Condensed Statements of Cash Flows
(in thousands)
(Unaudited)
 
 
  Quarter Ended March 31, 2016     Quarter Ended March 31, 2017
             
Operating activities:      
Net income $ 1,222     $ 365  
Adjustments to reconcile net income to net cash   9,514       4,202  
Changes in assets and liabilities   (3,695 )     5,441  
Net operating   7,041       10,008  
       
Investing activities:      
Capital expenditures   (466 )     (838 )
Other   30       1  
Net investing   (436 )     (837 )
       
Financing activities:      
Net repayment of borrowings   (6,250 )    
Net financing   (6,250 )     -  
       
Effect of exchange rate changes on cash and cash equivalents   208       31  
       
Net increase in cash and cash equivalents   563       9,202  
Cash and cash equivalents at beginning of year   16,115       16,660  
Cash and cash equivalents at end of period $ 16,678     $ 25,862  
       
Contact:                                                                                                                Douglas E. Nickerson  (913-234-5154)                                                         Chief Financial Officer

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