OVERLAND PARK, Kan., Aug. 30, 2018 (GLOBE NEWSWIRE) -- QC Holdings, Inc. (OTC PINK: QCCO) reported a net loss of $3.0 million and revenues of $47.4 million for the six months ended June 30, 2018. Net loss totaled $1.6 million and revenues totaled $46.2 million for the six months ended June 30, 2017.

The 3% improvement in revenues during the first six months of 2018 compared to 2017 was primarily attributable to an acceleration of installment loan revenues as customers migrate from single-pay products.

Loan loss rates increased during the six months ended June 30, 2018 compared to 2017, largely due to approximately $1.0 million in first quarter 2017 cash recoveries from the business-to-business portfolio and from branches that were closed at the end of 2016.

About QC Holdings, Inc.
Headquartered in Lenexa, 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 257 branches in 14 states at June 30, 2018. 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 many 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 announced regulations 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 Operations
(in thousands, except per share amounts)
(Unaudited)

 
Quarter Ended
June 30,		 Year Ended
June 30,
  2017   2018   2017   2018 
Revenues       
Consumer loan interest and fees$    20,555  $    21,226  $    41,712  $    43,034 
Other     2,261       2,112       4,522       4,405 
Total revenues   22,816     23,338     46,234     47,439 
        
Provision for losses   6,198     7,150     9,468     12,373 
Operating expenses     11,889       12,170       24,443       24,516 
Gross profit   4,729     4,018     12,323     10,550 
        
Corporate and Regional expenses   6,025     6,097     12,294     11,902 
Other expense, net     563       781       1,382       1,570 
Loss before income taxes   (1,859)      (2,860)    (1,353)    (2,922)
          
Provision (benefit) for income taxes     81       (10)      222       42 
Net loss$    (1,940) $    (2,850) $    (1,575) $    (2,964)
                
Loss per share:       
Basic       
  Net loss$    (0.11) $    (0.16) $    (0.09) $    (0.17)
                
Diluted       
  Net loss$    (0.11) $    (0.16) $    (0.09) $    (0.17)
Weighted average number of common shares outstanding:               
Basic   17,333     17,333     17,333     17,333 
Diluted   17,333     17,333     17,333     17,333 


QC Holdings, Inc.
Consolidated Condensed Balance Sheets
(in thousands)

 
December 31,
2017
 June 30,
2018
ASSETS   (Unaudited) 
Current assets    
Cash and cash equivalents$  16,198 $  16,525 
Restricted cash   1,879    2,069 
Loans receivable, less allowance for losses of $7,755 at  December 31, 2017 and $7,742 at June 30, 2018   32,921    30,079 
Other current assets     3,748      3,469 
Total current assets   54,746    52,142 
Non-current loans receivable, less allowance for losses of $83 at  December 31, 2017 and $64 at June 30, 2018   258    192 
Property and equipment, net   8,241    8,703 
Other assets, net     7,313      7,112 
Total assets$  70,558 $  68,149 
     
LIABILITIES AND STOCKHOLDERS’ EQUITY    
Current liabilities    
Accounts payable and other current liabilities$    9,355 $    8,103 
Revolving credit facility   2,500    4,678 
Subordinated debt     8,168      7,822 
Total current liabilities   20,023    20,603 
     
Non-current liabilities     4,471      4,482 
Total liabilities   24,494    25,085 
     
Stockholders’ equity     46,064      43,064 
Total liabilities and stockholders’ equity$  70,558 $  68,149 


QC Holdings, Inc.
Consolidated Condensed Statements of Cash Flows
(in thousands)
(Unaudited)

 
Six Months Ended
June 30, 2017
  Six Months Ended
June 30, 2018
Operating activities:        
         
Net loss$    (1,575)  $    (2,964)
Adjustments to reconcile net loss to net cash   11,148      14,202 
Changes in assets and liabilities   (4,968)       (10,463)
Net operating     4,605        775 
         
Investing activities:        
Capital expenditures   (1,407)     (1,875)
Other     1        - 
Net investing     (1,406)       (1,875)
         
Financing activities:        
Net repayment of borrowings   (2,625)     1,700 
Other     -        (38)
Net financing     (2,625)       1,662 
         
Effect of exchange rate changes on cash, cash equivalents and restricted cash     67        (45)
         
Net increase in cash, cash equivalents and restricted cash   641      517 
Cash, cash equivalents and restricted cash at beginning of year     18,525        18,077 
Cash, cash equivalents and restricted cash at end of period$  19,166   $  18,594 

Contact:
Douglas E. Nickerson (913-234-5154)
Chief Financial Officer