DFC Global Corp. ( DLLR ) reported
operating earnings of 24 cents per share for the fiscal third
quarter 2013 (ending Mar 31, 2013), which surpassed the Zacks
Consensus Estimate of 22 cents per share. However, results lagged
the year-ago earnings of 54 cents per share by 55.6%.
Including for one-time charges, DFC Global incurred a net loss of
$36.4 million or 86 cents in the fiscal third quarter 2013. The
company reported a net income of $31.8 million or 70 cents per
share in the year-ago period.
Quarterly Operational Update
Total revenue for the quarter climbed 5.8% year over year on a
constant currency basis to $283.6 million. Higher consumer lending
revenues (up 12.5% year over year on a constant currency basis)
along with slight improvement in pawn service fees and sales (up
1.2% year over year on a constant currency basis) aided the upside.
However, results were behind the Zacks Consensus Estimate by
Operating expenses escalated 21% year over year to $210.7 million.
Increase in expenses were due to higher salaries and benefits,
provision for loan losses, occupancy costs, advertising expenses,
depreciation, bank charges and armored carrier services,
maintenance and repairs, and other costs.
The extent of increase in operating expenses offset the increase
in revenue, thereby pulling down operating income by 23.9% year
over year to $72.9 million in the reported quarter.
Adjusted earnings before interest, tax, depreciation and
amortization (EBITDA) were $55.1 million, down 27.7% year over
Share Repurchase Update
During the quarter, DFC Global bought back 0.23 million shares for
approximately $4 million, at an average share price of $17.26. As
of Apr 1, 2013, DFC Global is left with 2.2 million shares under
its share repurchase authorization.
DFC Global exited the quarter with cash and cash equivalents of
$207.3 million, down 7.5% from $224 million at year-end fiscal
Total assets of DFC Global declined 1.7% from $1.8 billion at Jun
30, 2012 to $1.7 billion at Mar 31, 2013.
Long-term debt of the company increased 4% from fiscal 2012 end
level to $976.5 million as of Mar 31, 2013. Debt-to-capital ratio
of DFC Global as of Mar 31, 2013 was 70%, up 120 basis points from
68.8% at Jun 30, 2012.
At Mar 31, 2013, DFC Global had drawn $22.6 million from its
$235 million global revolving credit facility. The company had also
drawn £5.3 million of its £6.0 million credit facilities in the
U.K., and SEK 30.0 million and EUR 12.7 million of its respective
SEK 125.0 million and EUR 18.8 million credit facilities in
DFC Global reconfirmed its earnings guidance for fiscal 2013.
Excluding any one-time charges or gains that may occur, the
non-cash impact of ASC-470-20, and the non-cash amortization
associated with the legacy cross-currency interest rate swap
agreements, operating earnings are expected to be in the range of
$1.70-$1.80 per share.
Performance of Other Financial Services
American Express Co. ( AXP ), also known as
AmEx, reported its first-quarter 2013 operating earnings per share
of $1.15. The result comfortably surpassed the Zacks Consensus
Estimate of $1.11 and the year-ago quarter earnings of $1.07 a
Discover Financial Services ( DFS ) reported
first-quarter 2013 earnings per share (EPS) of $1.33, surpassing
the Zacks Consensus Estimate of $1.12. EPS also surpassed the
year-ago quarter's earnings of $1.21.
Euronet Worldwide Inc. ( EEFT ), reported its
first-quarter 2013 operating earnings per share of 38 cents. The
result surpassed both the Zacks Consensus Estimate and the year-ago
quarter earnings by 22.6%.
DFC Global currently carries Zacks Rank #5 (Strong Sell).AMER EXPRESS CO (AXP): Free Stock Analysis
ReportDISCOVER FIN SV (DFS): Free Stock Analysis
ReportDFC GLOBAL CORP (DLLR): Free Stock Analysis
ReportEURONET WORLDWD (EEFT): Free Stock Analysis
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