Exhibit 99.1
QC Holdings, Inc. Reports $3 Million Increase in Second Quarter Income
Revenues Surpass $51 Million on 28.6% Quarterly Increase
Board Declares 10 Cent Dividend and Increases Stock Repurchase
Program by $10 million
OVERLAND PARK, Kan.--(BUSINESS WIRE)--Aug. 2, 2007--QC Holdings,
Inc. (NASDAQ: QCCO) today announced results for the three and six
months ended June 30, 2007. Highlights for the quarter included
(compared to prior year's second quarter):
-- a $3.0 million increase in net income to $3.3 million;
-- $0.16 per diluted share versus $0.01 per diluted share in
second quarter 2006;
-- $0.18 per diluted share, exclusive of pre-tax costs and
charges for eight Oregon branches the company will close due
to changes in the payday loan law (see discussion below);
-- a 28.6% increase in revenues to $51.2 million;
-- a $5.9 million improvement in adjusted EBITDA, which is
earnings before interest, taxes, depreciation, amortization
and charges related to stock options and restricted stock
awards (and pre-tax costs and charges for eight Oregon
branches during second quarter 2007), to $8.3 million;
-- a 10 cent dividend payable on August 31, 2007 to stockholders
of record as of August 15, 2007.
"We are pleased with second quarter results and the progress of
our branches," said QC Chairman and Chief Executive Officer Don Early.
"Our revenue growth exceeded our expectations and is indicative of our
emphasis on driving our top-line totals and the strong customer demand
for the payday loan product.
"Our loan losses were higher than prior year's second quarter, but
are within the acceptable range given the time of year," Early said.
"Importantly, our net revenues grew more than 20% for the quarter.
Further, we are benefiting from the maturation of our newer branches
as we leverage the costs that are required to operate a typical
branch."
Highlights for the six months ended June 30, 2007 included
(compared to the prior year period):
-- a $3.9 million increase in net income to $6.7 million;
-- $0.33 per diluted share versus $0.13 per diluted share in
prior year's period;
-- $0.44 per diluted share, exclusive of pre-tax costs and
charges for eight Oregon branches during second quarter 2007
and 39 branches in various states during first quarter 2007
(see discussion below);
-- a 27.6% increase in revenues to $99.8 million;
-- a $10.8 million improvement in adjusted EBITDA to $19.4
million.
For the three and six months ended June 30, 2007, schedules
reconciling adjustments to net income pursuant to generally accepted
accounting principles (GAAP), and adjusted EBITDA to net income, are
provided below.
The results for the three and six months ended June 30, 2007
include approximately $517,000 ($311,000, or $0.02 per diluted share,
after-tax) in costs and charges associated with the company's
activities to close its eight Oregon branches due to changes in the
payday loan laws that effectively preclude the product. The results
for the six months ended June 30, 2007 also include approximately $3.0
million ($1.8 million, or $0.09 per diluted share, after-tax) in costs
and charges associated with the closing of 39 branches during first
quarter 2007, including $1.5 million for termination of operating
leases and related occupancy costs, $1.5 million for the disposition
of property and $40,000 for write-offs of deposits. QC believes that
it is useful to management and investors to analyze results after
adjusting for these items to provide a more comparable basis for
evaluating QC's operating results and financial performance over time.
Excluding these costs and charges, net income for the three and six
months ended June 30, 2007 totaled $3.6 million, or $0.18 per diluted
share, and $8.8 million, or $0.44 per diluted share, respectively.
Second Quarter
The $11.4 million improvement in revenues quarter-to-quarter
resulted from higher payday loan volumes, which reflects increases in
the number of branches, the number of customer transactions and
average loan size. QC originated approximately $298.0 million of
payday loans during second quarter 2007, which was an increase of
18.7% over the $251.0 million during second quarter 2006. The average
loan (including fee) totaled $361.22 versus $360.41 during the three
months ended June 30, 2006. Average fees per loan declined from $53.21
in second quarter 2006 to $51.94 in the current year quarter due to a
decline in the overall fee rate as the company expands in states that
have lower fee structures and due to legislative and regulatory
changes affecting rates. These declines were partially offset by a
higher average loan size.
Revenues for comparable branches (defined as those branches that
were open for all of the two periods being compared, which means the
15 months since March 31, 2006) increased 20%, or $7.7 million, to
$46.2 million during the three months ended June 30, 2007. This
increase is primarily attributable to the acceleration of revenues
associated with the 2005 group of branches and to growth in the
installment loan product in Illinois. Second quarter 2007 revenues
also include approximately $4.3 million from branches added during the
final nine months of 2006, including 50 South Carolina branches
acquired in December 2006.
Branch operating costs, exclusive of loan losses, increased $1.1
million to $22.3 million during the three months ended June 30, 2007.
Branch-level salaries and benefits totaled $11.4 million in second
quarter 2007 versus $10.9 million in second quarter 2006 due to a
higher number of field personnel to operate newer branches. Occupancy,
other branch expenses and depreciation increased in aggregate by
$464,000, which reflects the rent costs associated with a higher
number of branches, partially offset by improvements in various other
costs.
During the three months ended June 30, 2007, the company reported
an increase in loan losses to $14.2 million compared to $9.4 million
in the same 2006 period. The increase reflects a higher level of
returned items and more challenging collections during the quarter.
The loss ratio totaled 27.7% versus 23.6% in second quarter 2006. In
2006, the company's loss experience was very strong, reflecting
implementation of additional loan origination-based procedures. While
the current quarter experience is more typical of the seasonal lull in
collections and increase in returned items, the higher loss ratio also
reflects the company's focus on increasing revenue and the recent
surge in gasoline prices. Comparable branches totaled $13.3 million in
loan losses during the quarter, while branches opened during the last
nine months of 2006 and in 2007 totaled approximately $2.1 million.
These losses were partially offset by cash receipts through QC's
corporate collections department, including the sale of older debt of
approximately $850,000 during the quarter.
QC's branch gross profit in second quarter 2007 was $14.8 million,
a $5.6 million improvement over prior year's $9.2 million. Gross
profit for comparable branches during second quarter 2007 increased
$3.6 million to $13.7 million from $10.1 million in prior year, with
the improvements resulting from stronger results in the majority of
states. The branches added during the last nine months of 2006
generated gross profit of $613,000 as a result of the 50 acquired
South Carolina branches. The aggregate of profits from the QC
corporate collection department (including the sale of debt),
partially offset by net losses associated with closed branches and
newer branches, contributed approximately $500,000.
Regional and corporate expenses declined to $8.2 million during
the three months ended June 30, 2007 from $8.3 million in second
quarter 2006. This decline reflects lower professional fees in the
current year quarter due to approximately $600,000 in costs during
second quarter 2006 associated with the company's evaluation of a
potential acquisition. The reduction in professional fees was
partially offset by higher equity award compensation and salaries
associated with a 6% increase in home office and regional personnel
quarter-to-quarter.
The effective income tax rate during second quarter 2007 decreased
to approximately 39.8% from 46.5% in prior year's second quarter due
to the effects of permanent difference tax items on reduced prior year
pretax income.
"Our comparable branches experienced a terrific quarter, driving
gross profit by more than 35% versus last year," noted QC President
and Chief Operating Officer Darrin Andersen. "Our 2005 branches
continued the positive momentum generated during the first quarter.
With the branch closings behind us, we look forward to improving our
profitable branches, while avoiding the distraction associated with
poorly performing branches.
"We are disappointed with the short-sighted regulations passed in
Oregon that deny people the choice to use a payday loan instead of
incurring overdraft and bounced check fees, late utility payment fees
and credit card penalties," Andersen said. "Decisions such as these
energize our industry to respond with greater vigor to our critics,
with broader product alternatives for our customers and with better
information for decision-makers."
Six Months Ended June 30
The company's revenues grew $21.6 million, or 27.6%, to $99.8
million during the six months ended June 30, 2007 versus 2006 as a
result of increases in the number of branches, the number of customer
transactions and average loan size.
Revenues for comparable branches (defined as those branches that
were open for all of the two periods being compared, which means the
18 months since December 31, 2005) increased 17.4%, or $13.1 million,
to $88.3 million during the six months ended June 30, 2007 for the
same reasons as noted in the quarterly discussion. Revenues from
branches added during 2006, including the 50 acquired South Carolina
branches, totaled $10.0 million for the six-month period.
Branch operating costs, exclusive of loan losses, increased to
$47.1 million from $42.1 million in prior year, primarily due to new
branches. At comparable branches, operating expenses declined $223,000
period-to-period, indicative of attention to appropriate staffing
levels and controlled miscellaneous costs. Comparable branches
averaged approximately $12,800 per month in operating expenses during
the first half of 2007.
During the six months ended June 30, 2007, the company reported
loan losses of $20.7 million compared to $14.6 million in the same
2006 period. The company's loss ratio was 20.7% during the six months
ended June 30, 2007 versus 18.7% during the same 2006 period.
Comparable branches totaled $19.4 million in loan losses during the
first half of 2007 compared to $14.1 million in the prior year period.
The less-favorable loss experience reflects a higher level of
charge-offs and lower collection rate during 2007, partially offset by
approximately $1.8 million received from the sale of older debt.
Branch gross profit increased approximately $10.5 million from
$21.5 million during the six months ended June 30, 2006 to $32.0
million in the current period. Exclusive of the costs and charges
associated with the eight Oregon branches and the 39 closed branches
during first quarter 2007, branch gross profit totaled $33.6 million
for the six months ended June 30, 2007. Gross profit for comparable
branches during the first six months of 2007 increased by $7.9
million, or 33.2%, to $31.7 million from $23.8 million in prior year.
The branches added during 2006 reported a gross profit of $1.4
million. Gross losses from branches added during 2007, closed branches
and unopened branches were substantially offset by proceeds received
from the sale of older debt.
Regional and corporate expenses increased to $17.6 million during
the six months ended June 30, 2007 compared to $16.3 million in 2006
for the same reasons identified in the quarterly discussion above, and
due to approximately $750,000 in advertising and public awareness
expenditures during first quarter 2007.
- DIVIDEND DECLARATION AND STOCK REPURCHASE PROGRAM-
QC's Board of Directors declared a cash dividend of 10 cents per
common share. The dividend is payable August 31, 2007, to stockholders
of record as of August 15, 2007.
The Board also increased the company's $30 million common stock
repurchase program by $10 million, subject to amendment of the
company's credit facility. The repurchase program, which expires on
June 30, 2008, authorizes the company to buy $40 million of QC common
stock, of which approximately $27.6 million has been repurchased to
date.
- BUSINESS OUTLOOK -
"Our results from comparable branches have exceeded our first half
expectations, primarily due to higher revenue," Early said. "With
losses leveling in an acceptable range, this strong revenue growth
produces meaningful bottom-line impact. Meanwhile, our field personnel
and corporate groups have successfully managed operating expenses.
"Since May 2005, we have returned nearly $32 million to
shareholders through stock repurchases and dividends. We continue to
believe this is an excellent use of capital, as evidenced by the
Board's decision to increase the repurchase program and to pay another
dividend in August.
"As we continue through this seasonally more difficult loan loss
period, our field personnel are challenged with managing losses, while
maintaining focus on our revenue goals. We believe our efforts are
working to achieve the optimal balance between revenue growth and
reasonable losses. With this balance, and a flexible and strong
balance sheet, we are poised to generate positive long-term
shareholder value."
QC will present its financial results for the three months and six
months ended June 30, 2007 in a conference call on August 2, at 2:00
p.m. EDT. Stockholders and other interested parties are invited to
listen online at www.qcholdings.com or dial 800-561-2813, passcode
88402876. The accompanying slides to the presentation will be
available on the QC Web site prior to the conference call on August 2.
A replay of the audio portion of the presentation will be available
online until the close of business on September 2, 2007. The replay
can also be accessed by telephone until August 9, 2007, at
888-286-8010, code 12377551.
About QC Holdings, Inc.
Headquartered in Overland Park, Kansas, QC Holdings, Inc. is a
leading provider of payday loans in the United States, operating 599
branches in 25 states at June 30, 2007. With more than 23 years of
operating experience in the retail consumer finance industry, the
company entered the payday loan market in 1992 and, since 1998, has
grown from 48 branches to 599 branches through a combination of de
novo branches and acquisitions. During fiscal 2006, the company
advanced approximately $1.1 billion to customers through payday loans
and reported total revenues of $172.3 million.
Forward-Looking Statement Disclaimer: This press release and the
conference call referenced above contain 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 payday lending
practices, (2) litigation or regulatory action directed towards us or
the payday loan industry, (3) volatility in our earnings, primarily as
a result of fluctuations in loan loss experience and the rate of
revenue growth in branches, (4) negative media reports and public
perception of the payday loan industry and the impact on federal and
state legislatures and federal and state regulators, (5) changes in
our key management personnel, (6) integration risks and costs
associated with contemplated and completed acquisitions, and (7) the
other risks detailed under Item 1A. "Risk Factors" in our Annual
Report on Form 10-K for the year ended December 31, 2006 filed with
the Securities and Exchange Commission. QC will not update any
forward-looking statements made in this press release or the
conference call referenced above to reflect future events or
developments.
QC Holdings, Inc.
Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
2006 2007 2006 2007
--------- --------- --------- ---------
Revenues
Payday loan fees $35,713 $44,308 $69,400 $85,888
Other 4,054 6,936 8,799 13,875
--------- --------- --------- ---------
Total revenues 39,767 51,244 78,199 99,763
--------- --------- --------- ---------
Branch expenses
Salaries and benefits 10,856 11,433 21,568 23,310
Provision for losses 9,380 14,205 14,623 20,680
Occupancy 5,463 6,139 11,001 14,055
Depreciation and
amortization 1,230 1,209 2,491 2,436
Other 3,675 3,484 7,019 7,306
--------- --------- --------- ---------
Total branch expenses 30,604 36,470 56,702 67,787
--------- --------- --------- ---------
Branch gross profit 9,163 14,774 21,497 31,976
Regional expenses 3,043 3,230 6,116 6,236
Corporate expenses 5,272 4,977 10,147 11,392
Depreciation and amortization 332 553 638 1,049
Interest expense (income), net (182) 55 (277) 170
Other expense, net 145 531 193 2,073
--------- --------- --------- ---------
Income before income
taxes 553 5,428 4,680 11,056
Provision for income taxes 257 2,159 1,891 4,405
--------- --------- --------- ---------
Net income $296 $3,269 $2,789 $6,651
========= ========= ========= =========
Earnings per share:
Basic $0.01 $0.17 $0.14 $0.34
Diluted $0.01 $0.16 $0.13 $0.33
Weighted average number of
common shares outstanding:
Basic 20,278 19,461 20,378 19,500
Diluted 21,046 19,997 21,135 20,026
Non-GAAP Reconciliations
Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)
The company analyzes historical results after adjusting for certain
items. With respect to the results for the second quarter 2007, the
company believes that excluding the various costs and charges
associated with eight Oregon branches that will close during third
quarter 2007 is useful to management and investors because it
provides a more comparable basis for evaluating the company's
operating results and financial performance over time. Internally,
these adjusted results are used to evaluate the performance of the
company.
Three Months Ended Three Months Ended
June 30, 2006 June 30, 2007
------------------------- ------------------------
Non- Non-
GAAP GAAP
GAAP Adjust- Adjusted GAAP Adjust- Adjusted
ments ments
(a) (b)
-------- ------- -------- ------- ------- --------
Revenues
Payday loan fees $35,713 $- $35,713 $44,308 $- $44,308
Other 4,054 - 4,054 6,936 - 6,936
-------- ------- -------- ------- ------- --------
Total revenues 39,767 - 39,767 51,244 - 51,244
-------- ------- -------- ------- ------- --------
Branch expenses
Salaries and
benefits 10,856 - 10,856 11,433 (31) 11,402
Provision for
losses 9,380 - 9,380 14,205 - 14,205
Occupancy 5,463 - 5,463 6,139 (102) 6,037
Depreciation and
amortization 1,230 - 1,230 1,209 - 1,209
Other 3,675 - 3,675 3,484 (11) 3,473
-------- ------- -------- ------- ------- --------
Total branch
expenses 30,604 - 30,604 36,470 (144) 36,326
-------- ------- -------- ------- ------- --------
Branch gross profit 9,163 - 9,163 14,774 144 14,918
Regional expenses 3,043 - 3,043 3,230 - 3,230
Corporate expenses 5,272 - 5,272 4,977 - 4,977
Depreciation and
amortization 332 - 332 553 - 553
Interest expense
(income), net (182) - (182) 55 - 55
Other expense, net 145 - 145 531 (373) 158
-------- ------- -------- ------- ------- --------
Income before
income taxes 553 - 553 5,428 517 5,945
Provision for
income taxes 257 - 257 2,159 206 2,365
-------- ------- -------- ------- ------- --------
Net income $296 $- $296 $3,269 $311 $3,580
======== ======= ======== ======= ======= ========
Earnings per share:
Basic $0.01 $- $0.01 $0.17 $0.02 $0.19
Diluted $0.01 $- $0.01 $0.16 $0.02 $0.18
(a) There were no adjustments related to the operations during the
three months ended June 30, 2006.
(b) These adjustments reflect the elimination of the costs and
charges for eight Oregon branches that QC will close during third
quarter 2007 due to changes in payday laws that effectively preclude
the company from offering payday loans, including $102,000 for
termination of operating leases and related occupancy costs, $373,000
for the disposition of property and $42,000 for write-offs of deposits
and severance to employees.
Non-GAAP Reconciliations
Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)
The company analyzes historical results after adjusting for certain
items. With respect to the results for the six months ended June 30,
2007, the company believes that excluding the various costs and
charges associated with 39 branch closings during first quarter 2007
and eight Oregon branches that will close during third quarter 2007
is useful to management and investors because it provides a more
comparable basis for evaluating the company's operating results and
financial performance over time. Internally, these adjusted results
are used to evaluate the performance of the company.
Six Months Ended Six Months Ended
June 30, 2006 June 30, 2007
------------------------- ------------------------
Non- Non-
GAAP GAAP
GAAP Adjust- Adjusted GAAP Adjust- Adjusted
ments ments
(a) (b)
-------- ------- -------- ------- ------- --------
Revenues
Payday loan fees $69,400 $- $69,400 $85,888 $- $85,888
Other 8,799 - 8,799 13,875 - 13,875
-------- ------- -------- ------- ------- --------
Total revenues 78,199 - 78,199 99,763 - 99,763
-------- ------- -------- ------- ------- --------
Branch expenses
Salaries and
benefits 21,568 - 21,568 23,310 (31) 23,279
Provision for
losses 14,623 - 14,623 20,680 - 20,680
Occupancy 11,001 - 11,001 14,055 (1,558) 12,497
Depreciation and
amortization 2,491 - 2,491 2,436 - 2,436
Other 7,019 - 7,019 7,306 (51) 7,255
-------- ------- -------- ------- ------- --------
Total branch
expenses 56,702 - 56,702 67,787 (1,640) 66,147
-------- ------- -------- ------- ------- --------
Branch gross profit 21,497 - 21,497 31,976 1,640 33,616
Regional expenses 6,116 - 6,116 6,236 - 6,236
Corporate expenses 10,147 - 10,147 11,392 - 11,392
Depreciation and
amortization 638 - 638 1,049 - 1,049
Interest expense
(income), net (277) - (277) 170 - 170
Other expense, net 193 - 193 2,073 (1,824) 249
-------- ------- -------- ------- ------- --------
Income before
income taxes 4,680 - 4,680 11,056 3,464 14,520
Provision for
income taxes 1,891 - 1,891 4,405 1,355 5,760
-------- ------- -------- ------- ------- --------
Net income $2,789 $- $2,789 $6,651 $2,109 $8,760
======== ======= ======== ======= ======= ========
Earnings per share:
Basic $0.14 $- $0.14 $0.34 $0.11 $0.45
Diluted $0.13 $- $0.13 $0.33 $0.11 $0.44
(a) There were no adjustments related to the operations during the
six months ended June 30, 2006.
(b) These adjustments reflect the elimination of the costs and
charges associated with the closing of 39 branches during first
quarter 2007 and eight Oregon branches that QC will close during third
quarter 2007, including $1.6 million for termination of operating
leases and related occupancy costs, $1.8 million for the disposition
of property and $82,000 for write-offs of deposits and severance to
employees.
Non-GAAP Reconciliations
Adjusted EBITDA
(in thousands)
(Unaudited)
QC reports adjusted EBITDA (earnings before interest, taxes,
depreciation, amortization and charges related to stock options and
restricted stock awards) as a financial measure that is not defined
by U.S. generally accepted accounting principles ("GAAP"). QC
believes that adjusted EBITDA is a useful performance metric for our
investors and is a measure of operating and financial performance
that is commonly reported and widely used by financial and industry
analysts, investors and other interested parties because it
eliminates significant non-cash charges to earnings. It is important
to note that non-GAAP measures, such as adjusted EBITDA, should not
be considered as alternative indicators of financial performance
compared to net income or other financial statement data presented in
the company's consolidated financial statements prepared pursuant to
GAAP. Non-GAAP measures should be evaluated in conjunction with, and
are not a substitute for, GAAP financial measures. The following
table provides a reconciliation of net income to adjusted EBITDA:
Three Months Ended Six Months Ended
June 30, June 30,
2006 2007 2006 2007
--------- --------- --------- ---------
Net income $296 $3,269 $2,789 $6,651
Provision for income taxes 257 2,159 1,891 4,405
Depreciation and
amortization 1,562 1,762 3,129 3,485
Interest expense 28 75 101 258
Stock option and restricted
stock expense 218 497 718 1,176
Branch closing costs and
charges (a) - 517 - 3,464
--------- --------- --------- ---------
Adjusted EBITDA $2,361 $8,279 $8,628 $19,439
========= ========= ========= =========
(a) For 2007, the adjusted EBITDA computation includes the costs
and charges associated with eight Oregon branches QC will close in
third quarter 2007 and 39 branch closings during the first quarter
2007 to provide a more comparable basis for evaluation.
QC Holdings, Inc.
Consolidated Balance Sheets
(in thousands)
December 31, June 30,
2006 2007
------------- -------------
ASSETS (Unaudited)
Current assets
Cash and cash equivalents $23,446 $19,261
Loans receivable, less allowance for
losses of $2,982 at December 31, 2006
and $3,721 at June 30, 2007 66,018 63,363
Prepaid expenses and other current
assets 3,028 4,013
------------- -------------
Total current assets 92,492 86,637
Property and equipment, net 31,311 28,432
Goodwill 14,492 15,756
Other assets, net 4,652 4,730
------------- -------------
Total assets $142,947 $135,555
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $909 $634
Accrued expenses and other liabilities 10,876 10,656
Deferred revenue 4,558 5,260
Income taxes payable 531
Debt due within one year 16,300 10,500
Deferred income taxes 1,742 1,086
------------- -------------
Total current liabilities 34,916 28,136
Non-current liabilities 598 690
Deferred income taxes 2,645 1,762
------------- -------------
Total liabilities 38,159 30,588
Commitments and contingencies
Stockholders' equity 104,788 104,967
------------- -------------
Total liabilities and stockholders'
equity $142,947 $135,555
============= =============
QC Holdings, Inc.
Selected Statistical and Operating Data
(in thousands, except Branch Data, Average Loan and Average Fee)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
2006 2007 2006 2007
--------- --------- --------- ---------
Unaudited Unaudited
Branch Data:
Number of branches,
beginning of period 549 588 532 613
De novo branches opened 9 10 27 22
Acquired branches 5 13
Branches closed (7) (4) (8) (49)
--------- --------- --------- ---------
Number of branches, end of
period 551 599 551 599
========= ========= ========= =========
- ----------------------------------------------------------------------
Comparable Branch Data:
Total number of comparable
branches 500 500 483 483
Comparable branch revenue $38,506 $46,154 $75,197 $88,269
Percentage change 20.0% 17.4%
Comparable branch net
revenues $29,256 $32,849 $61,105 $68,820
Percentage change 11.9% 12.6%
- ----------------------------------------------------------------------
Operating Data - Payday Loans:
Loan volume $251,003 $298,042 $482,701 $577,094
Average loan (principal plus
fee) 360.41 361.22 360.25 361.99
Average fee 53.21 51.94 53.03 52.11
- ----------------------------------------------------------------------
Loss Data:
Allowance for loan losses:
Balance, beginning of
period $1,049 $1,770 $1,705 $2,982
Adjustment to provision
for losses based on
evaluation of outstanding
receivables (a) 731 1,951 75 739
--------- --------- --------- ---------
Balance, period end $1,780 $3,721 $1,780 $3,721
========= ========= ========= =========
Provision for losses:
Charged-off to expense $17,335 $23,358 $34,115 $44,404
Recoveries (8,696) (11,114) (19,518) (24,483)
Adjustment to provision
for losses based on
evaluation of outstanding
receivables (a) 741 1,961 26 759
--------- --------- --------- ---------
Total provision for losses $9,380 $14,205 $14,623 $20,680
========= ========= ========= =========
Provision for losses as a
percentage of revenues 23.6% 27.7% 18.7% 20.7%
Provision for losses as a
percentage of loan volume
(all products) 3.6% 4.5% 2.9% 3.4%
(a) Amounts differ due to the inclusion of changes in the credit
services organization liability in the provision for losses table.
CONTACT: QC Holdings, Inc.
Investor Relations Contact:
Douglas E. Nickerson, 913-234-5154
Chief Financial Officer
or
Media Contact:
Tom Linafelt, 913-234-5237
Director - Corporate Communications