##### 



Dollar Financial Corp. Announces Record Fiscal 2005 Third Quarter Operating Results; Multiple
Acquisitions Position Company for Continued Growth; 212 Stores Added to International Network
   
    
    Acquired the assets of We the People USA, Inc., a legal
document preparation business consisting of 170 franchise
stores; acquired 17 company-operated and 2 franchised
financial services stores in the United Kingdom; and acquired
24 company-operated financial services stores in the State of
Louisiana.
    
    Increased total revenue by 17.0% or $11.0 million to $76.4
million.
    
    Increased comparable store sales by $8.4 million or 13.1%;
factoring out the effect of foreign currency it was a 9.3%
increase.
    
    Realized a 25.3% increase in revenue for the Companys
international operations to $43.2 million.
    
    Realized a 7.7% increase in revenue for the Companys U.S.
operations to $33.3 million.
    
    Increased net consumer lending revenue by $6.5 million or
24.5%.
    
    Increased check cashing revenue by $2.3 million or 7.6%.




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##### 



June 30,
    
    
    March 31,2004
    
    
    2005(unaudited)AssetsCash and cash equivalents
    
    $
    69,270
    
    
    $
    80,793Loans receivableLoans receivable
    
    
    32,902
    
    
    
    38,513Less: Allowance for loan losses
    
    
    (2,315
    )
    
    
    (3,078
    )Loans receivable, net
    
    
    30,587
    
    
    
    35,435Other consumer lending receivables
    
    
    7,404
    
    
    
    8,353Other receivables
    
    
    4,056
    
    
    
    6,492Income taxes receivable
    
    
    6,125
    
    
    
    4,871Prepaid expenses
    
    
    4,380
    
    
    
    6,921Deferred tax asset, net of valuation allowance
of $24,474 and $33,421
    
    
    
    
    
    
    174Notes and interest receivableofficers
    
    
    4,785
    
    
    
    Property and equipment, net of accumulated
depreciation of $49,540 and $61,986
    
    
    27,965
    
    
    
    31,472Goodwill and other intangibles, net of
accumulated amortization of $23,339 and $23,545
    
    
    149,118
    
    
    
    185,194Debt issuance costs, net of accumulated
amortization of $987 and $2,213
    
    
    11,428
    
    
    
    10,003Other
    
    
    4,219
    
    
    
    2,422$
    319,337
    
    
    $
    372,130Liabilities and shareholders (deficit) equityAccounts payable
    
    $
    15,863
    
    
    $
    20,866Foreign income taxes payable
    
    
    5,979
    
    
    
    5,489




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##### 



June 30,
    
    
    March 31,2004
    
    
    2005(unaudited)Accrued expenses and other liabilities
    
    
    17,854
    
    
    
    21,804Accrued interest payable
    
    
    5,525
    
    
    
    9,532Revolving credit facilities
    
    
    
    
    
    
    11,000Long term debt:9.75% Senior Notes due 2011
    
    
    241,176
    
    
    
    241,05616.0% Senior Notes due 2012
    
    
    42,070
    
    
    
    13.95% Senior Subordinated Notes due 2012
    
    
    41,652
    
    
    
    Other long term debt
    
    
    105
    
    
    
    16Shareholders (deficit) equity:Common stock, $.001 par value: 55,500,000
shares authorized; 11,025,001 shares issued
at June 30, 2004 and 18,403,126 shares issued
at March 31, 2005, respectively
    
    
    11
    
    
    
    18Additional paid-in capital
    
    
    61,470
    
    
    
    165,821Accumulated deficit
    
    
    (120,916
    )
    
    
    (124,353
    )Accumulated other comprehensive income
    
    
    13,813
    
    
    
    26,227Treasury stock at cost; 59,222 shares at June
30, 2004 and 333,574 shares at March 31, 2005
    
    
    (956
    )
    
    
    (5,346
    )Management equity loan
    
    
    (4,309
    )
    
    
    Total shareholders (deficit) equity
    
    
    (50,887
    )
    
    
    62,367$
    319,337
    
    
    $
    372,130
 
 Three Months Ended
    
    
    Nine Months EndedMarch 31,
    
    
    March 31,2004
    
    
    2005
    
    
    2004
    
    
    2005Revenues:Check cashing
    
    $
    30,398
    
    
    $
    32,708
    
    
    $
    87,939
    
    
    $
    95,803Consumer lending:Fees from consumer
lending
    
    
    29,923
    
    
    
    37,225
    
    
    
    90,130
    
    
    
    113,970Provision for loan
losses and
adjustment to
servicing income
    
    
    (3,477
    )
    
    
    (4,308
    )
    
    
    (17,899
    )
    
    
    (22,517
    )Consumer lending, net
    
    
    26,446
    
    
    
    32,917
    
    
    
    72,231
    
    
    
    91,453Money transfer fees
    
    
    3,245
    
    
    
    3,722
    
    
    
    9,574
    
    
    
    10,915Other
    
    
    5,268
    
    
    
    7,102
    
    
    
    13,365
    
    
    
    16,821Total revenues
    
    
    65,357
    
    
    
    76,449
    
    
    
    183,109
    
    
    
    214,992Store and regional
expenses:Salaries and benefits
    
    
    19,397
    
    
    
    22,365
    
    
    
    56,881
    
    
    
    63,419




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##### 



Three Months Ended
    
    
    Nine Months EndedMarch 31,
    
    
    March 31,2004
    
    
    2005
    
    
    2004
    
    
    2005Occupancy
    
    
    5,019
    
    
    
    5,820
    
    
    
    14,768
    
    
    
    16,814Depreciation
    
    
    1,533
    
    
    
    1,773
    
    
    
    4,471
    
    
    
    5,326Returned checks, net
and cash shortages
    
    
    2,051
    
    
    
    2,699
    
    
    
    6,936
    
    
    
    7,916Telephone and
telecommunication
    
    
    1,336
    
    
    
    1,600
    
    
    
    4,329
    
    
    
    4,468Advertising
    
    
    1,736
    
    
    
    1,983
    
    
    
    5,278
    
    
    
    7,078Bank charges
    
    
    888
    
    
    
    1,022
    
    
    
    2,778
    
    
    
    2,934Armored carrier
services
    
    
    786
    
    
    
    935
    
    
    
    2,266
    
    
    
    2,649Other
    
    
    5,502
    
    
    
    6,990
    
    
    
    18,345
    
    
    
    20,783Total store and
regional expenses
    
    
    38,248
    
    
    
    45,187
    
    
    
    116,052
    
    
    
    131,387Store and regional
margin
    
    
    27,109
    
    
    
    31,262
    
    
    
    67,057
    
    
    
    83,605Corporate and other
expenses:Corporate expenses
    
    
    8,360
    
    
    
    10,838
    
    
    
    22,727
    
    
    
    31,486Management fee
    
    
    249
    
    
    
    108
    
    
    
    786
    
    
    
    636Other depreciation
and amortization
    
    
    800
    
    
    
    806
    
    
    
    2,672
    
    
    
    2,908Interest expense, net
    
    
    10,151
    
    
    
    7,766
    
    
    
    29,585
    
    
    
    27,237Loss on
extinguishment of
debt
    
    
    
    
    
    
    8,097
    
    
    
    8,855
    
    
    
    8,097Termination of
management services
agreement
    
    
    
    
    
    
    2,500
    
    
    
    
    
    
    
    2,500Other
    
    
    157
    
    
    
    189
    
    
    
    278
    
    
    
    133Income before income
taxes
    
    
    7,392
    
    
    
    958
    
    
    
    2,154
    
    
    
    10,608Income tax provision
    
    
    5,789
    
    
    
    5,437
    
    
    
    28,125
    
    
    
    14,045Net income (loss)
    
    $
    1,603
    
    
    $
    (4,479
    )
    
    $
    (25,971
    )
    
    $
    (3,437
    )Net income (loss) per
share:Basic
    
    $
    0.15
    
    
    $
    (0.28
    )
    
    $
    (2.37
    )
    
    $
    (0.27
    )Diluted
    
    $
    0.14
    
    
    $
    (0.28
    )
    
    $
    (2.37
    )
    
    $
    (0.27
    )Weighted average
common shares
outstanding:Basic
    
    
    10,965,779
    
    
    
    15,935,660
    
    
    
    10,965,779
    
    
    
    12,569,815Diluted
    
    
    11,367,575
    
    
    
    15,935,660
    
    
    
    10,965,779
    
    
    
    12,569,815




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Three Months Ended
    
    
    Nine Months EndedMarch 31,
    
    
    March 31,2004
    
    
    2005
    
    
    2004
    
    
    2005Income before income taxes
    
    $
    7,392
    
    
    $
    958
    
    
    $
    2,154
    
    
    $
    10,608Add:Depreciation and amortization
    
    
    2,333
    
    
    
    2,579
    
    
    
    7,143
    
    
    
    8,234Interest expense
    
    
    10,151
    
    
    
    7,766
    
    
    
    29,585
    
    
    
    27,237Management Fees
    
    
    249
    
    
    
    108
    
    
    
    786
    
    
    
    636Foreign currency (gain) loss
    
    
    (181
    )
    
    
    263
    
    
    
    (484
    )
    
    
    861Loss on extinguishment of debt
    
    
    
    
    
    
    8,097
    
    
    
    8,855
    
    
    
    8,097Termination of management
services agreement
    
    
    
    
    
    
    2,500
    
    
    
    
    
    
    
    2,500Other
    
    
    157
    
    
    
    189
    
    
    
    278
    
    
    
    133EBITDA
    
    $
    20,101
    
    
    $
    22,460
    
    
    $
    48,317
    
    
    $
    58,306




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Three Months Ended
    
    
    Nine Months EndedMarch 31,
    
    
    March 31,2004
    
    
    2005
    
    
    2004
    
    
    2005Consolidated Store CountBeginning
    
    
    1,100
    
    
    
    1,130
    
    
    
    1,084
    
    
    
    1,110Opened
    
    
    3
    
    
    
    9
    
    
    
    8
    
    
    
    30Acquired
    
    
    
    
    
    
    41
    
    
    
    
    
    
    
    46Closed or Sold
    
    
    1
    
    
    
    6
    
    
    
    2
    
    
    
    14Franchise, net
    
    
    4
    
    
    
    168
    
    
    
    16
    
    
    
    170Ending
    
    
    1,106
    
    
    
    1,342
    
    
    
    1,106
    
    
    
    1,342Company-Operated Store CountBeginning
    
    
    628
    
    
    
    656
    
    
    
    624
    
    
    
    638Opened
    
    
    3
    
    
    
    9
    
    
    
    8
    
    
    
    30Acquired
    
    
    
    
    
    
    41
    
    
    
    
    
    
    
    46Closed or Sold
    
    
    1
    
    
    
    6
    
    
    
    2
    
    
    
    14Ending
    
    
    630
    
    
    
    700
    
    
    
    630
    
    
    
    700Franchise Store CountBeginning
    
    
    472
    
    
    
    474
    
    
    
    460
    
    
    
    472Net change
    
    
    4
    
    
    
    (2
    )
    
    
    16
    
    
    
    WTP acquisition
    
    
    
    
    
    
    170
    
    
    
    
    
    
    
    170Ending
    
    
    476
    
    
    
    642
    
    
    
    476
    
    
    
    642
 
 Three Months Ended
    
    
    Nine Months EndedMarch 31,
    
    
    March 31,2004
    
    
    2005
    
    
    2004
    
    
    2005Check Cashing DataFace amount of checks
cashed (in millions)
    
    $
    801
    
    
    $
    843
    
    
    $
    2,375
    
    
    $
    2,542Number of checks cashed
(in
thousands)
    
    
    1,983
    
    
    
    1,930
    
    
    
    6,204
    
    
    
    6,067Face amount of average
check
    
    $
    404
    
    
    $
    437
    
    
    $
    383
    
    
    $
    419Average fee per check
cashed
    
    $
    15.33
    
    
    $
    16.94
    
    
    $
    14.17
    
    
    $
    15.79Net write-offs of returned
checks (in thousands)
    
    $
    1,645
    
    
    $
    2,211
    
    
    $
    5,776
    
    
    $
    6,851Net write offs as a
percentage of check
cashing revenue
    
    
    5.4
    %
    
    
    6.8
    %
    
    
    6.6
    %
    
    
    7.2
    %Consumer Loan Data -
Originations




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Three Months Ended
    
    
    Nine Months EndedMarch 31,
    
    
    March 31,2004
    
    
    2005
    
    
    2004
    
    
    2005U.S. company funded
consumer loan
originations
    
    $
    17,443
    
    
    $
    15,956
    
    
    $
    47,638
    
    
    $
    53,025Canadian company funded
consumer loan
originations
    
    
    75,791
    
    
    
    107,346
    
    
    
    231,729
    
    
    
    332,514U.K. company funded
consumer loan
originations
    
    
    29,207
    
    
    
    43,420
    
    
    
    82,230
    
    
    
    128,898Total company funded
consumer loan
originations
    
    $
    122,441
    
    
    $
    166,722
    
    
    $
    361,597
    
    
    $
    514,437Consumer Loan Data  Net
RevenuesU.S. servicing revenues,
net
    
    $
    12,093
    
    
    $
    14,089
    
    
    $
    35,411
    
    
    $
    40,107U.S. company funded
consumer loan revenues
    
    
    2,666
    
    
    
    2,682
    
    
    
    7,138
    
    
    
    8,166Canadian company funded
consumer loan revenues
    
    
    7,895
    
    
    
    11,581
    
    
    
    22,577
    
    
    
    35,600U.K. company funded
consumer loan revenues
    
    
    5,048
    
    
    
    6,674
    
    
    
    13,854
    
    
    
    19,033Provision for loan losses
on company funded loans
    
    
    (1,256
    )
    
    
    (2,109
    )
    
    
    (6,749
    )
    
    
    (11,453
    )Total consumer lending
revenues, net
    
    $
    26,446
    
    
    $
    32,917
    
    
    $
    72,231
    
    
    $
    91,453Consumer Loan Data  Charge-offsGross charge-offs of
company funded consumer
loans
    
    $
    11,662
    
    
    $
    15,492
    
    
    $
    33,852
    
    
    $
    48,046Recoveries of company
funded consumer loans
    
    
    10,634
    
    
    
    13,871
    
    
    
    27,340
    
    
    
    37,251Net charge-offs on
company
funded consumer loans
    
    $
    1,028
    
    
    $
    1,621
    
    
    $
    6,512
    
    
    $
    10,795Gross charge-offs of
company funded consumer
loans as a percentage of
total company funded
consumer loan originations
    
    
    9.5
    %
    
    
    9.3
    %
    
    
    9.4
    %
    
    
    9.3
    %Recoveries of company
funded consumer loans as a
percentage of total
company funded consumer
loan originations
    
    
    8.7
    %
    
    
    8.3
    %
    
    
    7.6
    %
    
    
    7.2
    %Net charge-offs on company
funded consumer loans as a
percentage of total
company funded consumer
loan originations
    
    
    0.8
    %
    
    
    1.0
    %
    
    
    1.8
    %
    
    
    2.1
    %




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CONTACT:
    
    Dollar Financial Corp.byFinancial DynamicsMark McCall, 212-850-5641SOURCE:
    
    Dollar Financial Corp.