(RTTNews) - Monday, Dollar Financial Corp (DLLR: News ), a provider of retail financial services, announced first quarter earnings, which came in below last year, hurt in large part by non-cash mark-to-market losses. However, adjusted earnings for the quarter increased. The company also lifted its outlook for 2010 above the current Street expectations.

Net income for the quarter slid to $5.3 million or $0.22 per share from $11.3 million or $0.46 per share in the corresponding period last year unfavorably impacted by non-cash mark-to-market losses.

Proforma net income, which excludes non-recurring charges and the adoption of FSP APB-14-1, rose to $16.1 million from $13.7 million in the same period last year. Pro forma earnings grew 17.9% to $0.66 per share, on a constant currency basis, from $0.56 per share in the year-ago quarter.

On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $0.41 per sharer for the quarter. Analysts' estimates typically exclude special items.

Provision for loan losses declined to $11.7 million from $15.3 million in the year-ago period. Consolidated loan loss provision, expressed as a percentage of gross consumer lending revenue, improved to 14.8% from 18.7% for the three months ended September 30, 2008.

Mark to market debt adjustments was $7.8 million compared with Nil in the year ago quarter. Loss on store closings declined to $318 thousands from $4.94 million a year earlier.
Total revenues declined to $141.81 million from $153.1 million in the same period last year due to weak economic conditions and due to closure of a number of under performing U.S. financial services stores during the prior fiscal year. On a constant currency basis, consolidated revenue declined 1% to $151.8 million compared to the first quarter of the prior fiscal year.

Commenting on the first quarter results, Jeff Weiss, the company's chairman and chief executive officer, stated, "I am pleased to announce another quarter of strong financial results with all of our business units reporting higher year-over-year store margins.... This growth was achieved despite slightly lower year-over-year revenue on a constant currency basis amid the significantly weakened global economy."

Looking ahead, the company lifted its fiscal 2010 earnings guidance to between $2.10 and $2.30 per share, compared to its prior estimate range of $1.90 - $2.10 per share. Currently, analysts expect the company to earn $1.84 per share for 2010.

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