The Canadian Press - ONLINE EDITION

Cash Store suspends its dividend after posting loss for fiscal 2012

  • Print

EDMONTON - The Cash Store Financial Services Inc. (TSX:CSF) is suspending its quarterly dividend after posting a sharp drop in fourth-quarter net earnings.

The Edmonton-based company issued a release Tuesday in which it noted the decision not to issue a dividend for its fiscal fourth quarter had been announced previously — during an investor conference call on Jan. 2.

The dividend payout for the previous quarter was six cents per share.

"The board of directors reviews the company's dividend distribution policy on a quarterly basis," the company said in the release.

"This review includes evaluating the financial position, profitability, cash flow and other factors that the board of directors considers relevant."

The Cash Store said potential future dividend payouts will be reviewed on a quarterly basis.

Cash Stores shares closed down one cent Tuesday to $3.60 on the Toronto Stock Exchange. The issue's 52-week high is $8.41.

The company released its fourth-quarter and fiscal year-end results in late December and posted net income of $392,000, or two cents per shares for the quarter ended Sept. 30. That was down sharply from $2 million or 12 cents per share for the same period of 2011.

It had posted a $3.4-million loss in the third quarter of 2012.

For the fiscal year ended Sept. 30, the company reported a loss of $43 million, or $2.47 per share, compared with a profit of $9 million or 51 cents per share in the comparable year-earlier period.

Loan volume was $797.7 million for the 12 months ended Sept. 30 compared to $821.4 million for the same period of 2011.

Total revenue for the fiscal 2012 was $187.4 million compared to $189.9 million year over year.

The company called 2012 a year of "tremendous transition" as it shifted focus to direct lending and worked toward improving efficiency and profitability and to eliminate underperforming branches.

The Cash Store reported adjusted EBITDA of $11.2 million for the quarter, flat compared with the same quarter year over year.

EBITDA, or earnings before interest, taxes, depreciation and amortization, is a non-standard accounting term that many companies believe provides a better picture of operations than simple statements of profit and loss.

Cash Store Financial is a lender and broker of short-term advances and other financial services to income earning consumers who may not be able to obtain them from banks and other traditional lenders.

With headquarters in Edmonton, Cash Store operates 511 branches across Canada under the banners Cash Store Financial, Instaloans and The Title Store, along with 25 branches in the United Kingdom. It employs some 2,000 people.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

The greening of Elphaba the Wicked Witch in Wicked

View more like this

Photo Store Gallery

  • JOE.BRYKSA@FREEPRESS.MB.CA Local-(Standup photo)- Humming Around- A female ruby -throated hummingbird fly's through the bee bomb  flowers Friday at the Assiniboine Park English Garden- Nectar from flowers are their main source of food. Hummingbirds wings can beat as fast as 75x times second. Better get a glimpse of them soon the birds fly far south for the winter - from Mexico to South America- JOE BRYKSA/WINNIPEG FREE PRESS- Sept 10, 2009
  • Challenges of Life- Goose Goslings jump over railway tracks to catch up to their parents at the Canadian Pacific Railway terminalon Keewatin St in Winnipeg Thursday morning. The young goslings seem to normally hatch in the truck yard a few weeks before others in town- Standup photo- ( Day 4 of Bryksa’s 30 day goose project) - Apr 30, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

Do high-profile endorsements for political candidates influence your voting decisions?

View Results

View Related Story

Ads by Google