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First Cash Financial Services Inc. indicated increased revenue streams from its pawn shop operations have resulted in a major uptick to its earnings expectations for 2008.

Headquartered in Arlington, Texas, First Cash Financial (NASDAQ: FCFS), which operates pawn, loan and check-cashing stores, has increased its 2008 earnings per share guidance to an estimated range of $1.24 to $1.26 per share from its previous range of $1.17 to $1.20 per share. The company ramped up its guidance by 35 percent. The majority of this revenue growth and projected profitability will occur in its pawn shop operations.

Obviously the current economy and 2009 projections are creating an increased demand for payday advances and pawn “instant cash” needs of customer of First Cash.

Year-to-date same-store revenue jumped 15 percent!

(See our last Payday Loan Newsletter at Payday Loan Industry.com for our expectations for 2009 payday advance and auto title lending increased expectations.)

Revenue from pawn shop operations alone made up 78 percent of the company’s total quarterly revenue, First Cash said. (Further inquiry should reveal scrap gold buying and selling profits were a good portion of this. See Gold into Loot.com for how to offer this revenue stream yourself.)

During the third quarter, First Cash posted a profit of $46 million, or $1.54 per diluted share, down from a profit of $10 million, or 32 cents per diluted share, during the same period last year. The company’s loss comes as it continues to holds its discontinued Auto Master automotive business unit, which it has offered for sale for several months.

A one-time charge of $52.6 million related to the discontinuation of the company’s auto loan business also was recorded in the most recent quarter, having an impact on the company’s final net earnings.

Once again payday loan fans, 2009 is going to be a year in which we will have significant opportunity to help the consumer deal with the screw ups on Wall Street!

Advance America announced their chairman and co-founder, George Johnson, stepped down for personal reasons.

Advance America was founded in 1997 and currently is operating approximately 2800 loan centers in not only the USA but additionally in Canada and England.

William (Billy) Webster who is also a co-founder will replace Johnson.

The scuttlebutt is that Johnson resigned after the company posted a 4% profit loss in the first six months of the year. Others in the industry discount this assessment.

There is little doubt the payday loan industry is under attack as is the mortgage industry, the credit card industry, the banking industry, the oil industry, and others. It’s been noted elsewhere that when the US economy experiences a slowdown the regulators and
competitors, under the guise of consumer protection, attack our industry more vociferously than ever.

Ultimately the payday loan industry is driven by consumer demand; consumers have a huge demand for small loans that are easily obtained with a minimum of hassle. That describes the payday loan product!

Bottom line, when the car requires repair, or the lights are about to be turned off, or you need cash to pay for a presciption, or, or, or… The payday loan product fills the need. And it has certainly been proven that a $15 fee per $100 loaned is still a better deal than bounced check charges or overdraft fees.Why Banks Hate Payday Loans

It should be noted that even in states/provinces not having payday loan physical locations, consumers by the tens of thousands apply for and receive funds via the Internet or call centers! Many of these businesses are offshore. Regulators, legislators and competitors (so-called consumer protectionists) are forcing payday loan consumers into the hands of the offshore companies. Domestic payday loan companies welcome regulation as long as they are allowed to continue to operate at a reasonable profit under any proposed legislation.