Seeking Alpha
We cover over 5K calls/quarter
Profile| Send Message| ()  

Executives

Julie Prozeller – Financial Dynamics

Jeff Weiss – Chairman and CEO

Randy Underwood – EVP and CFO

Analysts

David Burtzlaff - Stephens Inc.

Robert Napoli - Piper Jaffray

John Hecht - JMP Securities

John Rowan - Sidoti & Company

Jason Arnold - RBC Capital Markets

Elizabeth Pierce - Roth Capital Partners LLC

Henry Coffey - Sterne, Agee & Leach

Dollar Financial Corp. (DLLR) F4Q09 Earnings Call August 27, 2009 5:00 PM ET

Operator

Welcome to Dollar Financial Corp. fourth quarter and fiscal 2009 year end financial results conference call. (Operator Instructions)

I would now like to turn the call over to Julie Prozeller of Financial Dynamics.

Julie Prozeller

Thank you. Good afternoon, everyone.

Joining us today from Dollar Financial Corp. are Jeff Weiss, Chairman and CEO, and Randy Underwood, Executive Vice President and CFO.

Before we begin our conference call I would like to remind you that the remarks made during this call with reference to future expectations, trends, plans, forecasts and the performance of Dollar Financial Corp., its subsidiaries and its markets are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the company's current beliefs, estimates and expectations and involve a number of risks and uncertainties.

Today the company will be commenting on an expectation of future results. As a reminder, these statements indicate the expectation of the Dollar Financial management team as of this date. These statements supersede any and all previous statements made by the company regarding the matters addressed. These statements are forward-looking statements and cannot be guaranteed and may prove to be wrong.

This outlook is based upon various assumptions which include but are not limited to the following: No material change in the products and services offered in all locations as of August 27, 2009, no material change in the company's current store development and acquisition plans, no material adverse results in litigation or regulatory proceedings involving the company that currently exist or that may arise in the future, and, of course, can be affected by changes in currency exchange rates and effective tax rates. Factors that could further affect results are outlined in the company's annual report and Form 10-Qs and 10-Ks.

The company's statements will include a discussion of adjusted EBITDA, which is a non-GAAP financial measure. The most comparable GAAP financial measure to adjusted EBITDA is income before income taxes. A reconciliation between adjusted EBITDA and income before income taxes is consistent with the company's reconciliation as presented in the recent press release dated August 27, 2009, which is available on the company's website at www.DFG.com.

I would now like to turn the call over to Jeff for an overview of the fiscal 2009 results.

Jeff?

Jeff Weiss

Thanks, Julie. Good afternoon, everyone.

I'd like to start by saying that I am very pleased with Dollar's performance in fiscal 2009, especially given the backdrop of one of the most challenging economic environments the world has seen in many, many decades.

During this past year we executed on a number of key initiatives which position the company very well for long-term growth. We completed several strategic acquisitions over the past months which significantly enhance our long-term growth outlook and further strengthens our position as the most diversified company in the industry with respect to geography, rent of product offering, and distribution channels.

In addition, we are starting to see the seeds of provincial regulation finally take root in Canadian provinces, where we have our greatest store concentration and that should present a number of additional growth opportunities over the next several quarters.

Furthermore, throughout fiscal 2009 we continued to aggressively expand our U.K. business through both de novo store development and acquisition, while our leading market position and strong brand recognition in that market continues to drive organic customer growth. As I have mentioned previously, the population of the U.K. now stands north of 60 million and, according to today's BBC report, is going to outpace virtually all of Europe over the next decade or so. They expect significant expansion in the U.K. population.

In the fourth quarter, despite the worst recession I have seen, we were able to grow our U.K. customer lending business by 12.8% on a same store basis. I think our U.K. management team has done a terrific job and I think one can only imagine in normal times what our growth rates would have been in those circumstances.

I'd now like to provide an update on some key acquisitions we made during the year.

As you may recall, this past April we completed the acquisition of an established Internet-based consumer lending business in the U.K. that furthers our strategy of having bricks and clicks. I am pleased to report that this acquisition has performed better than expected, with a loan book at the end of July of 4.4 million pounds compared to 2.5 million at the time of acquisition just a few months ago, all the while maintaining manageable loss rates.

In addition to acquiring the Internet lending platform and successful business model, we are also very excited to welcome the entire management team into the Dollar family, and that management team bolsters an already significant international management team and capabilities and provides seasoned business acumen and Internet lending industry experience. We intend to transfer and leverage this knowledge and experience into developing a global Internet lending platform which we will continue to deploy in other countries.

On July 6th we announced the acquisition of four stores in Northern Ireland. Three of the stores reside in the Central Belfast area, with the fourth store situated in the town of Lisburn, the third-largest city in Northern Ireland. The acquired stores are all multi-product locations offering check cashing, payday lending and pawn brokering services. The acquisition of these stores provides an opportunity to further expand and strengthen our store footprint in Belfast, which is the largest and most densely populated market in Northern Ireland.

All four stores occupy prime locations and strong local customer demographics for our products and services and they should serve to further strengthen our already strong brand recognition in that market. We intend to incorporate our entire product suite into these stores, including Western Union money transfer, foreign exchange, debit cards and other products and services as well as extend our Internet lending, gold buying and secured pawn lending options to these customers. Again, in keeping with our strategy of providing financial services to under-banked financially excluded service sector workers.

Then on July 8th we announced the acquisition of two traditional pawn shops in Edinburgh and Glasgow, Scotland. These two stores have been established since 1830 and primarily deal in loans securitized by gold jewelry and fine watches while offering traditional secured pawn lending through an array of other items. Both stores are located in prominent locations on major thoroughfares in high pedestrian traffic zones. The acquisition of these stores expands our pawn business beyond purely gold and jewelry lending and further strengthens our position as the third-largest pawn lender in the United Kingdom while bolstering our expertise.

Pawn lending in the U.K. is a tradition that goes back hundreds of years and is widely accepted as a mainstream source of credit while at the same time is a profitable source of securitized consumer lending revenue for our business. For the quarter ended June 30, 2009, total revenue generated by pawn lending in the U.K. was 2.1 million pounds as compared to 1.8 million for the prior year's quarter, which represents a year-over-year increase of nearly 20% - it's 19.1%. We look to further leverage our growing pawn lending expertise in existing and new geographic markets in the near future.

Finally, on July 14th we announced our initial entry into the European continent with the acquisition of an established consumer lending business in Poland. The acquired company, Optima S.A., founded in 1999 and headquartered in Gdansk, offers unsecured loans of generally 40 to 50-week duration with an average loan amount of $250 to $500.

The loan transaction includes a convenient in-home servicing feature, whereby loan disbursement and collection activities take place in the customer's home according to a mutually agreed upon and prearranged schedule. The in-home loan servicing concept is well accepted within Poland and Eastern Europe and was initially established in the U.K. nearly 100 years ago. Customer sales and service activities are managed through an extensive network of local commission-based representatives across five provinces in Northwestern Poland.

We have been looking at the Polish market for quite some time. Poland is at the forefront of economic development and growth in the region. The country has a population of nearly 40 million people - that's about 30% more than Canada - with a significant percentage of the population currently underserved by the traditional banking industry. This acquisition represents a planned first step into mainland Europe and provides a platform for further expansion into other Eastern European countries.

I'm also very pleased to welcome the entire management team of Optima, who, along with their robust credit and collection system and processes, are well positioned to take advantage of the substantial growth opportunities we believe are inherent throughout Poland and Eastern Europe.

With this acquisition, we now have operations internationally in Canada, the U.K., the Republic of Ireland, and Poland, as well as our legacy business in the United States.

I'm very pleased with how far our business has grown since I first became involved nearly 20 years ago. At that time the company had 85 primarily check cashing stores solely in the United States. That store base has since grown to a network of 1,206 stores across five countries and two continents.

It's always been our objective to be the most diversified company in our industry with respect to geography, product offering and distribution channel, and I'm proud to say that no other company in our space can come close to matching our geographic and product range and our distribution channel. Our entrance into Poland adds yet another growth engine to drive additional income and enhance shareholder value.

I'd now like to provide an update on our Canadian business. In Canada, where our largest and most profitable business unit resides, I'm pleased to report that provincial regulation is moving ahead in a manner that should establish a viable payday loan industry with strong consumer protections for years to come. To date the provinces of Ontario, Nova Scotia, British Columbia and Alberta have all announced maximum lending rates above our existing price structure, generally, below the pricing of many of our competitors.

We're the largest multi-product provider in Canada. The wide range of products we offer places us in the enviable position of being able to operate profitability at prices below that of our competition. This is a result of the fact that our business model ensures that all of our products and services contribute to the coverage of joint fixed costs in the generation of profits and cash flow.

Under provincial regulation we believe we have an opportunity to further leverage our multi-product store platform and improve upon our approximate 30% share of the Canadian market by offering products and services at prices below many of our competitors. Furthermore, many of the less-efficient monoline operators will likely struggle under provincial regulation, which should present an opportunity for us to purchase their stores or customer accounts at attractive prices.

Additionally, provincial regulation should also serve to both educate and legitimize the products in the eyes of potential customers who have never taken advantage of a payday loan before. We intend to pursue these potential new customers through renewed radio and television advertising campaigns, which we have done extensively in the past and have suspended for the duration of the regulatory process. We expect to roll out these programs as the individual provinces finalize and implement the new lending rate structures.

As would be expected in a deep recession, our check cashing fees and consumer lending revenue declined modestly in fiscal 2009, which is reflective of the higher unemployment trends across all provinces. In addition, our consumer loan volumes were further impacted by the company's decision to suspend its advertising campaigns until provincial regulation is established. I would expect these unfavorable revenue trends to improve as provincial regulation is implemented and our advertising programs ensue.

From a new product perspective, we have recently launched a gold purchase program in a number of Canadian stores, hoping to mirror the success that we've had in the U.K. And we have the intention to extend this product to nearly all of our company stores in Canada over the next several months. In certain selected areas in the U.S. we're doing it as well. While we're early in the launch of this new program, we are pleased with the initial customer acceptance and results.

In the U.K. in fiscal 2009 we continued to aggressively expand our store footprint to both de novo store development and acquisitions, while our dominant market position and strong brand recognition continued to drive organic customer growth. In the face of the U.K. recession, total consolidated revenue increased by 3.8 million pounds or 19.8% for the fourth quarter, while store margins as a result of operating efficiency improvement and higher same-store sales improved to 44.1% of gross revenue for the fourth quarter compared to 41.9% for the prior year's quarter.

In fiscal 2009 we added a total of 39 store locations in the U.K. through both de novo store development and acquisition. We believe there is further opportunity for the company to expand its store footprint in this market through additional de novo store builds and accretive acquisitions due to the relatively low industry penetration of retail locations to under banked consumers. Remember, the U.K. has more than double the population of our Canadian service.

The company recently launched an Internet-based gold purchase product in the United Kingdom - again, both bricks and clicks - to complement its store-based program, which we are currently supporting with a television advertising campaign in selected markets. We are pleased with the initial results of this new program.

In the U.S. during fiscal 2009, as previously reported, we closed a total of 114 U.S. financial service stores and significantly reduced our U.S. field management and support infrastructure as part of plan to divest underperforming stores and focus our domestic store footprint in states with more favorable and stable regulatory environments. As a direct result of the store closures and operating efficiency improvements resulting from a more contiguous footprint, store margins in our U.S. financial services business increased by more than $600,000 for the quarter compared to the prior year. We believe we now have this legacy business appropriately sized for the foreseeable future.

I'll now turn the call over to Randy, who will update you on the regulatory developments in Canada, our consolidated financial results for the fourth quarter and fiscal year, and our outlook for fiscal 2010.

Randy?

Randy Underwood

Thanks, Jeff, and good afternoon to all.

I'll start with an update on regulation in Canada. On August 1, 2009 Nova Scotia became the first province to officially implement newly proclaimed regulation of the payday loan industry with a maximum borrowing rate of $31 per $100 loaned. The company currently has eight company operated stores in Nova Scotia.

The company voluntarily elected in Ontario to early adopt the Ontario regulations effective July 1, 2009 since the maximum lending rate under provincial regulation in Ontario is similar to the company's existing loan rate structure. However, it appears that most of our competitors in Ontario are choosing to wait and adopt provincial regulation upon federal designation, which is anticipated to be about October 1, 2009. The company currently operates 214 company stores in Ontario.

In British Columbia they have announced a maximum rate of $23 per $100 loaned, which is anticipated to become effective November 1, 2009. The company currently has 80 company operated stores in British Columbia.

And on June 3rd the province of Alberta announced a maximum borrowing rate as well of $23 per $100 loaned, and implementation is anticipated to be towards the end of calendar year 2009. The company had 61 company operated stores in Alberta.

Turning to the province of Manitoba, it passed a bill on June 11, 2009 which rescinds the previous Public Utility Board's order to establish maximum lending rates. Under this bill the minister is now responsible for establishing maximum loan rates, loan extension limitations, and other lending terms and conditions. The role of the Public Utilities Board has been modified to an advisory body, thus we will have to wait awhile longer to learn the regulatory details for Manitoba. The company currently has 20 company operated stores in Manitoba.

Continuing on, New Brunswick passed their legislation this last April and is now in the midst of its rate-setting process, while the provinces of Saskatchewan and Prince Edward Island are now also engaged in their respective rate and regulation-setting processes. The company currently operates 6 company stores in New Brunswick and has no company stores in Saskatchewan or Prince Edward Island.

We continue to be very pleased with the positive developments in Canada and the responsible approach the provincial governments have taken with the industry. We believe this clearly signifies their understanding of the very real need for this important industry on behalf of the many consumers that currently and prospectively will use these products.

I'd now like to turn to our consolidated financial results for the fiscal year and fourth quarter.

The U.S. dollar obviously strengthened significantly during fiscal 2009, with the relative value of the Canadian dollar down nearly 15% to the U.S. dollar while the British pound sterling has been devalued by about 20% to the U.S. currency over the same time period. As a majority of the company's consolidated revenue is generated outside of the United States of America - in Canada and the U.K. - the reported results for the company's foreign subsidiaries were negatively impacted on a non-cash basis when those are translated into U.S. dollars, all as required by U.S. generally accepted accounting principals.

More importantly, as the company continues to reinvest the cash generated by its Canadian and U.K. businesses back into those businesses, fluctuations in currency exchange rates presently have no near-term cash flow impact on the company's operations. Therefore, we are providing metrics on our financial results on a constant currency basis as we believe this is the most representative of the true operating performance of our business units.

Unemployment across the U.S., Canada and the U.K. has now risen to a 25-year high, with some economists predicting that the jobless rate in all three countries could reach 10% by calendar year end. In addition, the average work week in the United States in the month of June fell to 33 hours, which is the lowest level on record.

Since a principal requirement for obtaining a loan is that the borrower be employed at the time the loan is granted, higher unemployment will naturally impact our loan volumes. Additionally, increasing unemployment coupled with a significant reduction in the average workweek can be negatively impacting our payroll check cashing volumes and reducing the average face amount of the checks we are cashing.

As we have stated on previous calls, our customer base is generally composed of small business owners and service sector workers who typically work non-discretionary jobs. The nature of these jobs tends to dampen fluctuations in employment from cyclical swings in the overall economy. However, due to the extremely challenging market environment and unemployment rates not seen in more than 25 years, a large portion of our customer base, which typically provides basically frontline services such as working cash registers at convenience stores, stocking shelves in grocery stores or serving hamburgers at McDonald's, has been moderately impacted by job losses, furloughs, and a reduction in working hours.

Looking forward, we believe there is still a real need for the basic services our customers provide. As a result, we expect that employment for this socioeconomic group should rebound faster than most other sectors of the economy as economic growth resumes.

Despite the backdrop of what has been called the Great Recession, I am pleased to report that for the fiscal year ended June 30, 2009 we achieved total revenue of $527.9 million, which on a constant currency basis equates to a record $595.1 million, representing a year-over-year increase of $22.9 million or 4 percentage points. And on a constant currency basis, total consumer lending revenue increased by $18 million or 6.2% for the fiscal year while check cashing revenue decreased by 12.9% or 6.6%.

Money transfer fees increased by $3 million or 10.8% for the fiscal year as a result of growth across all of the company's geographic business units. And our other revenue category contributed revenue of $70.4 million on a constant currency basis, representing a $14.8 million or 26.7% increase over the prior fiscal year primarily as a result of additional pawn, gold, scrap and retail sales in the U.K., additional foreign exchange product revenue in the U.K., and the growth of our debit card business in Canada.

Our store and regional margin for the fiscal year ended June 30, 2009 on a constant currency basis was $210 million compared to $198.2 million for the prior year. This represents a year-over-year increase of 5.6%. Also as a percentage of total revenue, store and regional margin for fiscal 2009 grew to 35.3% versus the previous year of 34.8%.

Excluding the impact of fluctuations in currency rates and non-recurring charges, pro forma income before income taxes for the fiscal year was a record $93.5 million, which compares to $90.5 million in fiscal 2008. And pro forma net income was $53.3 million for fiscal 2009, representing an increase of $1.7 million or 3.3% over the prior fiscal year.

Likewise, on a constant currency basis and excluding non-recurring charges, pro forma fully diluted earnings per share increased to a record $2.21 for fiscal 2009 from $2.10 for the fiscal year ended June 30, 2008.

Turning to our global consumer lending business, we continue to employ a conservative approach to credit decisioning in the current economic environment by reducing the amount we are willing to loan to certain customers. As a result, our consolidated loan loss provision expressed as a percentage of gross consumer lending revenue on a constant currency basis was stable at 17.7% for the fourth quarter as compared to 17.6% for the fourth quarter of the prior fiscal year. Until the global economies begin to show more solid signs of recovery we intend to continue to employ a prudent approach both to cashing checks and originating loans, with more focus on net margin realized as opposed to gross fees or consumer lending dollars.

Partly as a result of this strategy total consolidated revenue on a constant currency basis decreased by $7.7 million or 5.1% in the fourth quarter when compared to the prior year period. The company's consolidated consumer lending revenue during the quarter was once again bolstered by a 34.3% growth in consumer lending revenue in the U.K. market, where we continued to experience strong sales growth despite the recession, and check cashing revenue in the fourth quarter was of course unfavorably impacted by fewer and smaller payroll checks across all markets. But we expect these trends to improve as the economy recovers and employment stabilizes.

I am pleased with the result of a number of the cost reduction initiatives across all of our business units as well as operating efficiencies gained from the closure of 114 underperforming financial services stores in the U.S. during fiscal 2009. Our consolidated store and regional margin on a constant currency basis improved by more than a full percentage point to 35.7% of gross revenue for the June 30th quarter as compared to 34.6% for the prior year's quarter. These cost reduction initiatives nearly offset the effects of the recession on our net revenue as our consolidated store and regional margin on a constant currency basis decreased marginally by $1.2 million from the prior year's quarter.

Now turning to some non-operating events, in the fourth quarter ended June 30, 2009 the company recorded a charge of $57.5 million associated with our long-standing Canadian class action litigation. In addition, the company recorded a one-time charge of $4.5 million in the quarter related to severance and other store closing expenses, including the closure of 60 underperforming financial services stores in the U.S. along with associated reductions in field management and store support functions.

In May the company executed an early settlement of its cross-currency interest rate swaps held in its United Kingdom subsidiary, realizing $14.4 million of net cash proceeds. With the termination of the swaps, the U.K. term loans will once again be subject to variable interest rates and non-cash marked-to-market adjustments based on fluctuations in currency exchange rates. As a result, the company recorded a $5.5 million non-cash marked-to-market gain on its U.K. term loans in the fourth quarter.

Now excluding all of these non-recurring charges and on a constant currency basis, our pro forma income before income taxes was $22.9 million for the fourth quarter as compared to $24.5 million for the previous year's quarter. Pro forma net income considering a pro forma effective income tax rate of 43% was $13 million, representing a slight decrease of $900,000 from the prior year's quarter.

Likewise, pro forma fully diluted earnings per share was $0.54 for the current quarter compared to $0.57 per share for the prior year period, a minimal year-over-year decline for all of these profit metrics considering the current global economic conditions we are operating in.

Regarding the company's liquidity position, it remains very solid. We continue to maintain approximately $75 million of excess cash that is available to fund additional growth and acquisition activities or alternatively to pay down indebtedness if we choose to do so.

As of June 30, 2009, the company had not drawn on any of its global revolving credit facilities and as a result had a $75 million undrawn balance on its U.S. facility, a Canadian dollar 28.5 million undrawn balance in Canada, and a 5 million pound undrawn balance in the U.K., all of which is in addition to the substantial continuing free cash flow that the company realized from its business operation.

Furthermore, the company's long-term debt portfolio buttresses its strong liquidity position as the company's convertible notes are not due until June 2027 and they're not callable or puttable until December 2012. The Canadian and U.K. term notes do not mature until October 2012 and in the interim period until maturity the required principal payments amount to just $3.8 million annually.

Given the current economic climate, we intend to continue to manage our cash flow prudently by balancing our near term strategy to increase cash holdings while at the same time judiciously reviewing our active pipeline of international acquisition candidates to take advantage of selected attractively priced opportunities. Our recent move into Eastern Europe and the acquisition of some traditional pawn stores in Scotland are examples of the implementation of our strategy to broaden our diversification into new product platforms and into new countries in Europe.

With respect to our expectations for fiscal 2010, I must first point out that effective July 1, 2009 the company was required to adopt FSP APB 14-a, which will result in about $10 million of additional non-cash interest expense being recorded in fiscal 2010 as associated with the company's $200 million 2-7/8% U.S. convertible notes. Since the company does not currently receive a tax benefit from additional charges in the U.S. as a result of its historical net operating loss position for tax purposes, the unfavorable earnings per share impact in fiscal 2010 of adopting FSP APB 14-a on a GAAP basis is estimated to be approximately $0.40 per fully diluted share.

Therefore, looking forward to fiscal 2010, we are excited about the considerable growth opportunities facing our company. We do, however, expect our financial results in fiscal 2010 will unavoidably be affected by the timing of a number of significant events, such as the opportunity which should emanate from the long-awaited regulatory transition in Canada and, to a large extent, the timing and degree of the global economic recovery.

The current consensus of many economists is that the economic downturn is nearing its end and from the perspective of our company we are also beginning to see signs that business conditions are stabilizing or perhaps even improving. However, even if an economic recovery does begin to gain momentum over the next couple of quarters, it is uncertain as to how quickly job creation will follow.

Furthermore, currency exchange rates continue to fluctuate on a daily basis, which naturally affects the translation of our financial results into U.S. dollars according to GAAP. We are, however, pleased that the Canadian loonie and pound sterling have rebounded considerably in recent months from the lows reached last spring.

As a result of all of these factors we are currently providing a relatively wide guidance range for fiscal 2010 in an effort to provide direction to the markets while attempting to balance the significant growth opportunities we believe await us with the uncertain trajectory of the global economy and the unpredictable fluctuations in currency exchange rates, which could be either net favorable or unfavorable over the coming year.

Therefore, for fiscal 2010 we are projecting adjusted EBITDA of between $145 and $155 million and fully diluted earnings per share excluding the estimated $0.40 per fully diluted share non-cash impact from adopting FSP APB 14-a of between $1.90 and $2.10 per fully diluted share.

Furthermore, in fiscal 2010 we are planning to significantly expand our global store base and extend some of our other geographic platforms such as expanding into other provinces in Poland and perhaps other countries as well.

We expect to open between 30 and 40 de novo stores in the U.K. and the magnitude of the resumption of our de novo store program for Canada is presently yet to be determined. We will closely monitor the Canadian business environment and the evolution of the competitive landscape under regulatory reform during the coming year, and we expect to balance the extent of our de novo store build program with a value-based acquisition strategy of smaller, less-efficient store chains looking to sell their businesses in light of the new provincial regulation.

And now I'd like to turn the call back over to Jeff for some closing remarks, and then we will open the call up for questions.

Jeff Weiss

Thank you, Randy.

Despite having to navigate through the worst recession we hopefully will ever have to face, our business continued to perform very well in fiscal 2009, producing record revenue and profits on operational basis.

This strong performance is a testament to the strength and resiliency of our widely diversified business model, the non-discretionary essential nature of the services we provide to our customers, and the dedication and tireless work ethic of our more than 4,500 employees now spanning five countries and two continents.

We believe our strong cash flow from operations and solid liquidity will enable us to take advantage of additional global business development and expansion opportunities both in existing and prospective new markets as we move through fiscal 2010 and beyond.

In closing, fiscal 2009 has been a transformational year for our company and we believe we are well positioned for sustained profitable future earnings growth to ultimately drive further value for our shareholders.

Operator, we would now like to invite our listeners to ask any questions they may have.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from David Burtzlaff - Stephens Inc.

David Burtzlaff - Stephens Inc.

You mentioned business is stabilizing or improving. Can you give some examples of that?

Jeff Weiss

Sure. I think what we are seeing is that as we've turned into the current fiscal year we've seen some modest trend improvements in our consumer lending business in Canada and in some of our other consumer lending categories.

We've likewise seen some - I should say we're continuing to see the healthy increase in our consumer lending revenue in the U.K. that we've been experiencing here for some time in the past fiscal year.

And the gold pawn and silver buying and scrapping programs continue to grow and escalate in terms of magnitude.

And we see some customers coming back into our stores to cash checks or to get out a consumer loan that we haven't seen for a few months or more than a few months, and it appears some of them are going back to work, some of those who have been furloughed, particularly in the automotive industry and what have you in Ontario in Canada, which is the major industry up there, are coming back to work or hours are increasing.

So just general signs that things are returning towards growth as opposed to contraction.

David Burtzlaff - Stephens Inc.

Do you have the loss rates by country for the quarter?

Randy Underwood

I do. They were 20% for the U.S., 21% for Canada, and 11% for the U.K.

Operator

Your next question comes from Robert Napoli - Piper Jaffray.

Robert Napoli - Piper Jaffray

The Internet business is growing very fast versus coming out of the box here and I was just wondering if you can give a little more color on if the growth that we saw this quarter you would expect that to continue, like, is this going to be a $10 million plus portfolio in a couple of quarters and what does the profitability of that business look like?

Jeff Weiss

Well, let's look at the first question first.

We acquired this business. Essentially it was a family business with a family management who had funded the business with their own capital and they became relatively capital constrained relatively early on and capital constrained not only in their ability to lend but in their ability to market and expand their underwriting and collection activities.

I think initially we were able to supply additional lending capital and provide - again, its early days - some helpful underwriting and collection guidelines for them, and we are comfortable with the kind of growth so far.

I think before we can determine what the optimum growth rate and size of the portfolio is we're going to have to have some seasoning in the additional new loans. So I think probably we're a quarter or two away from being able to forecast growth rates with any degree of accuracy.

Robert Napoli - Piper Jaffray

Jeff, are those kind of traditional payday loans? Are they two-week loans?

Jeff Weiss

In the U.K., because many people are paid on a monthly basis, a significant portion of the loans are 30 days, which does serve to reduce the yield because you're receiving essentially the same fee for a 30-day loan, although there are a portion of the loans that have shorter duration. But is the exact analog of a payday loan except for the duration.

Robert Napoli - Piper Jaffray

And would you expect loss rates on that to be similar or lower than?

Jeff Weiss

I think the loss rates will be higher than - our experience has been in terms of what other Internet lenders see is that loss rates for non-face-to-face lending are higher but I think very manageable, in part because you can generate a higher fee.

Robert Napoli - Piper Jaffray

And then a question on Poland. What is the growth game plan for Poland? Is that business ready to come out of the box growing or do you need to kind of take some time and absorb it and make sure you know what you have first?

Jeff Weiss

I think the answer to both questions is yes. I mean, you've known us a long time, Bob; we're pretty belt-and-suspender kind of folks.

Again, a very similar circumstance in Poland. A family business self-funded; the entirety of the capital in the business, the lending capital and the working capital of the business was the former owners, and they were very cash constrained. And because they were cash constrained they were very, very selective about how much they lent and to whom and what geography.

I think you can expect to see a relatively aggressive expansion of the geographies in Poland in which we operate, but a more studied expansion of the loan book.

Again, this is a business that you grow primarily, again, through being able to offer funds but by enlarging your commission sales force. So your growth rate will be a function of how rapidly you add commission representatives in the geographies that you want to attack.

Again, we've just closed on that June 29th, so it's very, very early days, but we think that there is substantial growth in that business.

Robert Napoli - Piper Jaffray

Would you bring other products into Poland like the full spectrum?

Jeff Weiss

I think probably the opportunity in Poland, because it's not a store-based system, is a little diff4. I think there's probably an Internet opportunity in Poland and there may well be opportunities for some of our secured lending products, which we are exploring.

So the answer is a qualified yes.

Robert Napoli - Piper Jaffray

In Canada, with Ontario having agreed to early adopt, have you started to ramp up marketing in Ontario and, if so, what kind of dollar budget is there to think about on the marketing side? I would imagine you get pretty quick response on the top line on the foot traffic.

Jeff Weiss

Well, first, while we have voluntarily adopted the new regulation, the province has yet to pass a final affirmation, which I think is almost imminent, so I think we will defer our aggressive marketing until the affirmation of the new program.

And in terms of budget and so on, I think we regard that as relative proprietary and competitive information.

Robert Napoli - Piper Jaffray

And how quickly do you get response off of the marketing typically?

Jeff Weiss

There is no doubt that the marketing produces a result. The question is always to calibrate the profitability of the marketing. The phones begin to ring instantaneously. But the most effective marketing is television marketing and that's also the most expensive, so refining where you advertise, how frequently and how much you spend on it vis-à-vis the results you get is the science and art in this. There is no doubt that it's effective.

Operator

Your next question comes from John Hecht - JMP Securities.

John Hecht - JMP Securities

Forgive me if you explained this, but the total dollar value of the legal settlement in the quarter was bigger than what you announced for the Ontario settlement. Does that mean that you've incorporated the expectations for all the settlements in Canada in the current period here?

Randy Underwood

I think, John, we've kind of adjusted what our initial accrual was for Ontario and have taken a look at potentially some exposure that it might be appropriate to accrue for, some of the other provinces, and that becomes the total provision for the fourth quarter.

John Hecht - JMP Securities

So at this point that's a good estimate of what it'll take to put all that behind you, I guess, in Canada?

Jeff Weiss

I don't think I'm going to comment since we're in litigation. I don't it's be appropriate to do so.

John Hecht - JMP Securities

Did you give same-store sales by country on a constant currency basis?

Randy Underwood

No, we did not, John. We can go find those for you and maybe get them to you at a later point.

John Hecht - JMP Securities

Okay.

Jeff Weiss

But, you know, John, I think we should remind everyone that we made a decision to purposefully become much more restrictive on check cashing and lending given our desire to get paid back and we kind of controlled store revenue and impacted it negatively by becoming extremely cautious.

John Hecht - JMP Securities

Absolutely understood. That's been very consistent the last several quarters.

I guess the next question would be you do have an opportunity or you're going to have an opportunity to raise prices in most of your Canadian markets likely in the next couple of quarters. How do you balance that opportunity with also the opportunity to gain market share through customer acquisition and also the kind of customer loyalty programs that you might want to deploy with long-term customers?

Jeff Weiss

I think that's a good question and I think I'll answer it first by saying that we're reluctant to give away to the public about our competitive strategy other than to say we think we are ideally placed to maintain our position as the lowest-priced provider of the product, and I think that gives us a distinct advantage in new customer acquisition and retaining current customers. And on a province-by-province basis, while we will maintain that position, we will adjust pricing in response to competitive issues.

Operator

Your next question comes from John Rowan - Sidoti & Company.

John Rowan - Sidoti & Company

Randy, just to go back to guidance for a quick minute, obviously we know that it excludes the $0.40 of non-cash interest expense, but what's the tax rate and what are the currency bases that you're using for that guidance?

Randy Underwood

Well, as you know, depending upon where in the range the performance of the respective countries fall when the year's over, they all have different effective tax rates, and of course in the U.S. we don't really have an effective tax rate because of the net operating loss. We will be probably plus or minus around 43% or 44% effective tax rate. It could vary a point or two off of that, just again depending on the mix within the countries.

It's a relatively wide range of guidance, as I mentioned, and therefore it contemplates kind of a band of guidance around where we were here relatively recently. We, as last year, have tried to bracket what we think the plusses and minuses might be in terms of risk and opportunities by country given all those that I mentioned that we're trying to balance and also the currency.

So I think you kind of start off with what it's been running. Here in the last month or so it's been fairly stable and I hope it remains that way or perhaps even the dollar continues to trade in a manner that'll be favorable for us.

John Rowan - Sidoti & Company

I just wanted to make sure that it wasn't a 51%-ish rate, which you were in the third quarter. That was in guidance.

Randy Underwood

We've been trading at around 43%, which is why we've used that as the pro forma effective tax rate, I believe, for about the last two years.

It does fluctuate by quarter, again, as I mentioned earlier, depending on the mix of income and the countries that it's coming out of because they all have different statutory rates. So it's always going to fluctuate for us.

John Rowan - Sidoti & Company

And you did say that the guidance was on a constant currency basis. Now, is that just looking at the rates at the end of the June quarter or where they currently stand, just so we can get an idea of how the currency is actually going to affect earnings?

Randy Underwood

I don't think I said the guidance is on a constant currency basis. We gave a lot of metrics on a constant currency basis for the past quarter and the past fiscal year, but that is not constant currency on the guidance.

John Rowan - Sidoti & Company

And interest expense, I was actually a little surprised that it was as high as it was. Did you really get a lot of benefit in the quarter from the elimination of the swap? Is that included in the $8.9 million of interest expense?

Randy Underwood

We didn't get a lot of benefit from it because we didn't terminate the swaps until very late April, so you end up with just a couple months in there, John. And so we really didn't see anything like perhaps you'll see this year.

John Rowan - Sidoti & Company

Is the U.S. still at a loss and what's the current NOL?

Randy Underwood

Remember, the U.S. store platform continues to operate very profitability, but it's offset by our corporate costs and our global platform costs, by which we manage the rest of the businesses around the world. So the net of that for tax purposes is a net loss.

And our net loss - NOL - has grown to about $100 million at this point in time.

Operator

Your next question comes from Jason Arnold - RBC Capital Markets.

Jason Arnold - RBC Capital Markets

I was just curious if you could offer some more color on your comments about utilizing your online payday platform in other markets and maybe what sort of timeframe you could envision that panning out?

Jeff Weiss

Well, I think that our investigations indicate that the product would be well received in many geographies. Each geography has its own unique set of challenges, banking regulation, the ability to transfer funds electronically, and so on. But I think you can expect to see imminently us entering some other geography or geographies.

Jason Arnold - RBC Capital Markets

Is there any geography in particular that looks more compelling than another at this point?

Jeff Weiss

You know, we have said that we think that some of the Benelux countries in Eastern Europe are attractive.

Jason Arnold - RBC Capital Markets

And then I guess a follow up. Bob was also asking about the margins on the online business. Could you share EBITDA margin or something like that?

Randy Underwood

I think we'd prefer to keep that kind of proprietary for right now, but we're very, very pleased with the margins that the acquired U.K. Internet lending business produces - very, very pleased.

Jason Arnold - RBC Capital Markets

I guess one other on the guidance. I was just curious if you could share with us some of your assumptions on the macroeconomic environment for the fiscal 2010 or are you kind of more in the camp of moderate economic recovery across the market geographies or anemic or what are your thoughts there?

Jeff Weiss

I think considerations that we have is that while the U.K. economy, I guess first and foremost, has continued to suffer very significantly for the average company, given our strong market position there and all the stores that we've built and very successful marketing campaign that we've done, that business continues to trade with a pretty good increases. We see those increases continuing.

And so it's kind of counter to the economic situation that you hear about in the U.K. I think I cited some metrics where the U.K. business continued to grow throughout the year in spite of the very deep recession in the U.K.

In Canada we think there will be modest growth prior to whatever impacts, which should be net positive, occur from the change in the regulatory climate. Again, a little hard to determine how fast and how much until we gauge how the competitive environment changes and how our competitors react to the new pricing requirements.

And that's why we're not taking a position today, very consistent with what we've said on earnings calls, in terms of how many new stores we will build. We will build some new stores in Canada, but we're not taking a position on how many until, again, we watch and see what sort of acquisition opportunities there might be. And all this will just kind of be unfolding over the course of the next year as the provinces implement their rate structure, it's proclaimed by the federal government, and our competitors have to adjust their present pricing and modus operandi to the new requirements.

In terms of the U.S., I think we see or are seeing, to use maybe an overused phrase, green shoots. And that is in particular in our consumer lending business, not in our check cashing business thus far because we still have a lot of folks that, as I mentioned, hours are down and they're still starting to return to some jobs. But, like I said, we're starting to see people in our stores that we haven't seen for awhile. And, as we indicated, that gives us some degree of modest optimism for the U.S. business.

So all of our business we see that there is a good chance for some growth as we look out over fiscal 2010, with the most opportunity being in the U.K. and perhaps just as much in Canada depending, again, on the state of regulatory progress and competitive reaction.

Jason Arnold - RBC Capital Markets

Could you give us the total loan originations in U.S. dollars for the quarter and maybe also the number of checks cashed and total face value of the checks in USD during the quarter?

Randy Underwood

I didn’t bring that information with me here where I'm having them do the call from. I'm not really in the office. But that information will be coming out on our 10-K, which will be filed some time next week, I believe. So you'll get it pretty quickly.

Operator

Your next question comes from Elizabeth Pierce - Roth Capital Partners LLC.

Elizabeth Pierce - Roth Capital Partners LLC

Most of my questions have been asked, but I wanted to circle back just on the U.K. just to kind of get your - what Randy said, it is somewhat of a disconnect. It seems like the economic picture is bleak but trying to really narrow in, is it your diversified product mix that's kind of counterbalancing that? And if that's the case, can that model be replicated?

Jeff Weiss

Well, I think you're exactly right. I think it is our diversified product mix.

In the U.K., unlike our Canadian and U.S. business, we do a significant amount of secured lending and our gold buying program is well advanced although we have just started TV advertising, so those businesses have remained strong.

Although there has been a significant exodus from the U.K. of guest workers, it still remains an extremely strong Western Union market for us.

And I think probably overriding all of that is the fact that the U.K. is significantly underpenetrated in terms of the products and services that we offer. Again, more than double the population of Canada and we have a little bit more than half the stores of our Canadian marketplace. So I think we're benefiting from the continued growth of new customers in our market, people who have been heretofore unfamiliar with our services who are becoming more and more aware as our footprint grows.

Elizabeth Pierce - Roth Capital Partners LLC

With the Olympics - what is it, next year?

Jeff Weiss

That's right.

Elizabeth Pierce - Roth Capital Partners LLC

Are these guest workers coming back into the country?

Jeff Weiss

We certainly expect that will happen.

Elizabeth Pierce - Roth Capital Partners LLC

You do expect that will happen?

Jeff Weiss

Yes, particularly in London, of course.

Elizabeth Pierce - Roth Capital Partners LLC

Right. And then I misunderstood. How many stores did you say you closed in the U.S.? I don't know if that was a quarter number or a year number.

Randy Underwood

That was a quarterly number I gave you, Liz. The other numbers earlier in the year obviously are on our earlier releases.

Elizabeth Pierce - Roth Capital Partners LLC

I didn't hear it, Randy. How many was it?

Randy Underwood

In the quarter?

Elizabeth Pierce - Roth Capital Partners LLC

Yes.

Randy Underwood

It was about 60.

Elizabeth Pierce - Roth Capital Partners LLC

Six-zero?

Randy Underwood

It could have been 60 right on the nose.

Elizabeth Pierce - Roth Capital Partners LLC

Okay. And the severance charge was related to that?

Randy Underwood

Yes.

Elizabeth Pierce - Roth Capital Partners LLC

And I guess I had a similar question on the settlement. It was just a lot larger than I had anticipated. And I understand you don't want to get into a lot of details because you're still in litigation but to perhaps put it - this is just the protective measure for you guys, to do it this way?

Jeff Weiss

I think first I would refer you to go refresh yourself on the news release that we put out here probably about a couple of months ago - it was prior to year end - where we kind of explained all the details of the Ontario proposed settlement. And, as I mentioned, we've provided some additional amounts given that we have ongoing actions in other provinces.

Elizabeth Pierce - Roth Capital Partners LLC

I have the other press release in front of me. I'm just trying to make sense of it all, but we can talk offline.

Operator

Your next question comes from Henry Coffey - Sterne, Agee & Leach.

Henry Coffey - Sterne, Agee & Leach

I'm trying to sort of sort out exactly how to treat the $10 million of additional incremental costs, the interest expense. I know it's a non-cash item and I probably have less respect for GAAP than you do, Randy, but from a tax point of view you're basically going to be running the business at about a 43% tax rate and then you're going to have a $10 million air charge that you're not going to be able to tax deduct. Is that the way to sort of think about it in terms of trying to come up with a bottom line estimate?

Randy Underwood

That's a good way to think about it, Henry. I'm kind of laughing because it took me forever to spell out what this new publication is that we're already having to address, but it applies to everybody; it's just something we have to live with. I kind of view it as non-cash stock compensation expense. You're recording all this amount and someday years from now somebody might exercise them and you adjust up to whatever the real stock price is at that point in time.

For those who maybe are not familiar with this, the amount will fluctuate every year until maturity of the converts as you're required to kind of bifurcate under the assumption that the converts will be tendered for a portion in stock versus cash and therefore it presupposes that you make a determination of how much of that original debt offering might have been done as if it were debt versus as stock in kind of disparate transactions.

And then you have to assume a corporate borrowing rate that might have been appropriate had it been a pure debt transaction, and then you amortize that to where, at the point that the converts mature, you're back to $200 million of debt and the equity component that you've been recognizing all along has dissipated to zero.

And I guess the redeeming value here to what degree, in my opinion, there is one, is that we have to retroactively restate, as do all companies, our prior years' financial statements, so at least there'll be some comparability year-over-year in terms of interest expense and you'll have a non-cash component now in prior years that will probably mess up everybody's cash flow models as you adjust the interest expense for prior years.

Henry Coffey - Sterne, Agee & Leach

I was wondering if you could work on the federal deficit for us, too, while you're at it.

No, but I mean, basically we've got a 43% tax rate and then a $10 million non-deductible item, and that's how we should kind of model the upcoming year?

Randy Underwood

I won't suggest it's not real because that would not be appropriate and I certainly would not say that.

Henry Coffey - Sterne, Agee & Leach

Yes, I know.

The other thing, when it comes to the U.S. you indicated that - at the regional level, I'm assuming, which is how we compare the other units - the U.S. is profitable, but when we go beyond the four-wall expense, if we got down to the regional cost for the U.S. operation, you're saying it's still profitable?

Randy Underwood

The U.S. platform, including the management team that runs it and operates it on a daily basis and the attendant people that support it, it is still a very nice profitable business for it, as it always has been. It's a legacy business.

But we continue to expand our global staffing and our R&D efforts and a number of other things, and therefore our unallocatable corporate costs to our other existing business units does not soak up what I would suggest would be a fair share of what should be allocable to them. Not to the surprise, probably, of anybody, the foreign tax authorities that govern transfer pricing and rule on the transfer pricing processes tend to try and see how you can not allocate costs into their country as opposed to willingly accept them, so it's always a battle.

Henry Coffey - Sterne, Agee & Leach

In days gone by you used to present numbers in a fashion that we could kind of ferret out the regional profitability by country, and I was wondering either if online or in your 10-K when you put that out if you could kind of give us some light on that so we can get a sense of - because I think the performance of the U.S. is obviously critical. Everybody sort of looks at it as the dog dragging down the tail but obviously that's not the case, so I was wondering if you could either now or when you put out your 10-K give us some additional insight into how that works?

Randy Underwood

Henry, there is geographic information in the 10-K and there was last year, as I recall.

Henry Coffey - Sterne, Agee & Leach

Yes, but it doesn't give you enough to get to the regional expense level. It's there.

Randy Underwood

Okay, well, we'll double check it and see if there's a way. I understand your question. Let us see what we can do. I'll be in the process of reviewing that here over the weekend.

But let me just say to you and others on the call, any of us would be very, very pleased to have our U.S. business as a stand-alone business.

Henry Coffey - Sterne, Agee & Leach

And then finally as it applies to Canada, what are your thoughts about the likelihood of an invasion from the pretty hungry U.S. stores?

Jeff Weiss

You know, I guess our expectation is - and we've said this repeatedly - we would be surprised if there wasn't some competition from one or another well-financed U.S. company, but our experience in the payday loan business over almost 20 years now is at least for a four or five-year period it kind of grows the market for everyone as marketing makes more and more customers aware of the product.

Even though we advertise aggressively in Canada, as a relatively small company we certainly can't compete with Molson's ale or Tim Hortons for share of mind or eyeball or whatever you want to call it. So even though our marketing efforts have proven to be effective over many years, it's an industry that I think would benefit at least initially, meaning in the first four or five years, of having some genuine professional competitors who will help us create consumer awareness.

So I think in a strange way we would welcome some professionals entering the marketplace.

Henry Coffey - Sterne, Agee & Leach

I know your strategy has always been the low cost product out there. Do you think you'll continue in that vein despite what the regulations are going to allow you to do?

Jeff Weiss

Well, I think we have significant room beneath the regulation to raise prices if we wish and still remain low cost.

And that's another point. Even if we have significant payday loan competition, I think it's going to be extremely difficult if not impossible for any competitor in any reasonable period of time to replicate our diversified product model. Simply building the database of appropriate makers for check cashing is a many, many year period, not to mention our identification with Western Union and so on.

Operator

Your last question comes from Robert Napoli - Piper Jaffray.

Robert Napoli - Piper Jaffray

A follow up on the United States, I guess. All the regulatory noises on health care, I just wondered if you guys had any update on anything that you saw going on in the U.S.?

Jeff Weiss

I think it's been fortunately a relatively quiet summer because the Congress has been focused on, I would argue, far more pressing issues. What happens in the fall is yet to be seen and on a state level I guess I'd classify it as the usual skirmishes, although really none that would affect us significantly.

Robert Napoli - Piper Jaffray

And as far as the store base in the U.S., you said that you see some green shoots and you've closed quite a few stores in the last year. Quarterly should we still expect to see a handful of stores that are coming to the end of their lease that are maybe underperforming stores closing?

Jeff Weiss

Absolutely, again because when one renews a lease one is making a prediction of five year viability. Even if you only take a three-year lease, you're assuming that you're going to renew that lease.

So I think in the natural course of events, as some of our oldest stores, who have been profitable, come up, the combination of having to invest to modernize them or perhaps move them because the customers may have leaked away or enter into longer-term leases will probably persuade us to end some of those leases or not renew them.

And the opportunity to lease more attractive new sites at far better rates is becoming more evident to us as well. It's very difficult to renegotiate down on a lease renewal; it's much easier to get favorable terms on a new lease.

Robert Napoli - Piper Jaffray

Will we see some openings then in the U.S. this year?

Jeff Weiss

Quite possibly, depending on how the regulatory environment settles and how we see our ancillary products growing.

Robert Napoli - Piper Jaffray

Randy, you had mentioned, I think, in liquidity you guys have a pipeline of acquisitions but you also intend to build cash, if I read that correctly. You have $75 million of cash today, but your intention is to make attractively priced acquisitions and build cash. Am I reading that correctly?

Randy Underwood

I think we're going to continue to try and deploy our cash where it enhances shareholder value the most and thus far in this market, when capital remains constrained for a number of people who run their businesses out there in this marketplace, just like the acquisitions that we've announced, I think there are additional very attractive opportunities that we continue to look at that would be better places for us to put our cash to build long-term value for our shareholders than paying down debt.

But certainly we are continuing to watch and be judicious in making sure that the economy is not going to go into another trend down. You can all hear whatever forecast we want to hear out there - Vs and Ws and Ls and Js and all kinds of recoveries that the economists are all describing.

We intend to try and continue to balance to where we have a very, very large and ample supply of cash in the event that a rainy day comes again and kind of judiciously deploy things quarterly until we really, really see that it looks like there is a sustained recovery that's in process.

Robert Napoli - Piper Jaffray

The traditional pawn shops you opened in Scotland, are you looking to expand those types of stores? Those sound like very old, well-known and profitable stores. Are those kind of one off, great cash flow, little build out in Scotland or are there further thoughts around traditional pawn?

Jeff Weiss

I think that we're more focused on opportunistic acquisition. I don't think we have any plans at the moment to do de novo pawn builds. Again, we have already an extremely robust pawn operation in our conventional stores in the U.K. and we think there's real opportunity to build a small conventional pawn shop footprint which will also have multi products in it as well. And I think that will be on an opportunistic basis.

Robert Napoli - Piper Jaffray

The Benelux, would that be looking at acquisitions of consumer lending businesses similar to Poland?

Jeff Weiss

I think it's premature for us to comment on that.

Operator

And at this time there are no further questions. Mr. Weiss, do you have any closing remarks?

Randy Underwood

Jeff, do you have any closing remarks?

Jeff Weiss

Just thanks everyone. I look forward to conversing with you on the next quarter. I appreciate all your time.

Operator

And this does conclude today's conference call. You may now disconnect.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!

Source:  Dollar Financial Corp. F4Q09 (Qtr End 6/30/09) Earnings Call Transcript
This Transcript
All Transcripts