This summary is based on the second quarter fiscal 2008 earnings call conducted by Dollar Financial Corp. (DLLR: chart) on January 31, 2008.

Management:

- Financial Dynamics: Julie Prozeller
- CEO: Jeff Weiss
- Pres, Director, Sec., Pres of OPCO, Pres of DLLR: Don Gayhardt
- CFO, Principal Accounting Officer: Randy Underwood

Key Investors Issues

- Net income increased to $13 million or 52 cents a share, compared to a loss of $52.4 million or $2.23 a share in the prior year.
- Revenues were up 23% to $126 million.
- The Company acquired 120 stores and opened 20 de novo stores across the U.S., Canadian and U.K. markets.

Half Year Highlights:

- Net income was $25 million or $1.04 a share, from a loss of $54 million or $2.32 a share.
- Revenue increased from $193.8 million in 2006 to $242 million.
- Store count rose to 1,442 from 1,282 in the prior year.

Second Quarter Highlights

Revenue grew 23.1% to $125.7 million from $102 million in the prior year driven by the continued execution of the multi-country, multi-product, both in channel growth strategy and an ability to quickly and successfully integrate acquisitions.

- Revenue for the Canadian and UK market increased by a combined $24.1 million representing an increase of 32.9% year-over-year.
- Store and regional margin as a percentage of total revenue increased to 39.2% as compared to 36.8% for the prior year''s quarter.
- The firm increased the global store footprint by adding 140 stores for the first time in the company’s history and surpassed the 1000 company-owned store mark with 1088 stores and 1442 total system locations worldwide.
- One hundred and forty additional stores were comprised of 20 de novo stores in addition to the acquisition of 120 stores throughout the US, Canada and the UK markets.

Net income increased to $13 million or 52 cents a share, compared to a loss of $52.4 million or $2.23 a share in the prior year as the firm continued to leverage infrastructure and cost structure to deliver increased store and regional margin.

- The consolidated loan loss provision as a percentage of gross consumer lending revenue was stable at 21.8%, while adjusted EBITDA increased by 28.8% to $36 million versus the prior year’s period of $27.9 million.
- Pro forma pretax income which primarily excludes $51.6 million of refinancing and restructuring cost in the prior year period increased by 48.3% to $22.1 million.
- As at end of December, 2007, the firm had cashed $9.2 million checks globally with an average fee per check of $19.66.
- Net consumer lending revenue was $57.5 million, representing an increase of 24.3% or $11.3 million compared to the prior year period, driven by strong performance in international markets.

Funded loan originations were $479.5 million, representing an increase of 47.2%, or $153.8 million, compared to the prior year period.

- During the same period, it had underwritten 3.7 million loans worldwide with an average fee per loan of $67.99.
- The company had cash available for investment and future acquisition of approximately $30 million.
- Additionally, the entireties of the company’s $100 million in revolving credit lines were un-drawn at December 31 and still are today, affording the company ample liquidity to fund its present and anticipate future operations.

Regional Highlights:

- The Canadian business generated $64.4 million in total revenue which represents an increase of 30.7% over the prior year.
- Check cashing revenue increased by 28.8%, while consumer lending revenue increased by 27.6%.
- The firm opened 15 de novo stores while acquiring five additional store locations.

- The UK business contributed revenue of $32.9 million growing by 37.5% over the previous year.
- Consumer lending revenue increased by 71.7% and check cashing revenue grew by 14.9%.
- On a native currency basis, comparable store sale increased by 23% on continued healthy growth in the market for products and services.
- The firm opened three de novo stores and also acquired 17 additional stores from competitors as well as successfully launched an internet payday loan product in November.

In December, the firm completed the acquisition of seven stores in the Southwestern United Kingdom including locations in Southampton, Bournemouth, Worthing, Brighton, Reading, Kings Heath and Erdington.

- As part of the geographic diversification strategy, the firm continues to expand its presence in the UK, having opened or acquired 34 new branches in the year to bring the money shop footprint in the UK to 221 company-owned stores.

- US operations generated $28.3 million in total revenue, and on a year-over-year basis, check cashing fees increased by 4.4% whereas consumer lending revenue decreased by 9% or $1.3 million.
- The decrease in consumer lending was churned by the transition which began in the fourth quarter of fiscal 2007 of a portion of the US loan portfolio from bank funded installment loans to company funded single-payment loan products.
- The company entered into an agreement to acquire 45 US financial services which were principally located in the mid West and Hawaii.
- It completed the acquisition of 15 stores in Kansas and one in South Carolina while the necessary licenses for the state of Nebraska are expected to be finalized over the next 45 days at which time.