Dollar Financial Corp. (DLLR), Thursday reported a net loss for the fourth quarter on charges, as well as lower revenues. Results for the quarter reflects higher unemployment rate across all provinces that led to lower consumer lending revenue, forcing the company to close 60 under-performing financial services stores. Looking ahead, the company provided earnings outlook for fiscal 2010, indicated to come in above the current Street expectations.
The company posted a net loss of $31.2 million or $1.30 per share for the fourth quarter, compared to profit of $12.3 million or $0.50 per share in the prior year quarter.
Results for the latest quarter included a charge of $57.5 million related to its long-standing Canadian class action litigation, a one-time charge of $4.5 million related to severance and other store closing expenses, including the closure of 60 under-performing financial services stores in the U.S. during the fourth quarter.
Excluding items, pro forma net income, considering a pro forma effective income tax rate of 43.0%, was $9.5 million or $0.39 per share, compared to $14.0 million or $0.57 per share in the year-ago quarter.
On average, 7 analysts polled by Thomson Reuters expected the company to report earnings of $0.33 per share for the fourth quarter.
Fourth quarter total revenues declined to $124.4 million from $150.3 million in the same quarter last year. Three analysts had a consensus revenue estimate of $121.35 million for the fourth quarter.
For fiscal 2009, Dollar Financial reported net income of $1.8 million or $0.07 per share, compared to $51.2 million or $2.08 per share in the previous year.
Pro forma net income, considering a pro forma effective income tax rate of 43.0%, was $45.8 million or $1.90 per share, compared to $51.6 million or $2.10 per share in the prior year.
Annual revenues decreased to $527.9 million from $572.2 million in the preceding year.
The Street expected the company to report earnings of $1.71 per share on revenue of $524.22 million for the year.
For fiscal 2010, Dollar Financial anticipates earnings of $1.90 to $2.10 per share, excluding special charge of $0.40 per share. Analysts currently project earnings of $1.79 per share for the year 2010.
For fiscal 2010, the company indicated plans to significantly expand its global store base and extend some of its other geographic platforms, such as expanding into other provinces in Poland, and perhaps other countries as well.
Dollar Financial expects to open between 30 and 40 de novo stores in the U.K., and the magnitude of the resumption of its de novo store program for Canada is yet to be determined.
DLLR closed Thursday's regular trading session at $16.66, up 3 cents. In the after-hours, the shares further gained $1.09 or 6.54%.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.