Tag: payday advance

21
Oct

Record Payday Loan Profits

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!

14
Sep

Payday Loans – Ohio Update

The payday loan initiative scheduled to be voted on in the November ballot is at risk of being left off the ballot.

Secretary of State Jennifer Brunner said she’ll appoint a hearing officer to decide if consultants hired to collect signatures to place the measure on the ballot properly filed the petitions.

Gov. Ted Strickland in June signed a law restricting the annual percentage rate that lenders can charge to 28 percent, and limit the number of loans customers can take to four per year.

The payday loan industry managed to collect 422,000 petition signatures to place their initiative on the November ballot.The ballot measure needs 241,000 signatures from at least 44 of Ohio’s 88 counties to qualify.

The payday loan measure will repeal the cap on interest, allowing lenders to charge roughly 400% APR’s depending on the term of the payday advance.

Parties supervising the collection of ballot signatures must file a Form 5 with Ohio that lists the names and addresses of signature gatherers and the names of their employers. Brunner’s office can’t seem to find evidence the form was filed by Arno Political Consultants, a California firm hired to collect a portion of its signatures.

This failure could result in having the payday loan measure deleted from the ballot.

Sec. of State Brunner will decide Sept. 25 whether to accept the signatures and allow the referendum to be placed on the ballot.