This summary is based on the third quarter fiscal 2008 earnings call conducted by Dollar Financial Corp. (DLLR: chart) on May 5, 2008.

Management:

- Chairman of the Board: Jeffrey Weiss
- President: Donald Gayhardt
- Executive Vice President and Chief Financial Officer: Randy Underwood
- Investor Relations and Media of Financial Dynamics: Julie Prozeller

Key Investors Issues

- Revenue was $135.3 million, up $28.2 million or 26.4% over the prior year’s $107.1 million.
- Net income was $13.8 million or 56 cents a share, up 17.9%.
- The firm reaffirmed its guidance of EPS between $2.15 and $2.30.

Year to Date Highlights:

- Revenue of $377 million rose by 25.3% from $300.1 million in the prior year.
- Net income was $38.8 million or $1.56 cents a share, from a loss of $42.5 million or $1.81 a share.
- Acquired stores numbered 169 from 119 in the prior year.

Third Quarter Highlights

Consolidated revenue was $135.3 million, up $28.2 million or 26.4% over the prior year’s $107.1 million as international revenue from the Canadian and UK markets increased by a combined 25.3%.

- Revenue from the US business increased by 29% or $9 million, primarily as a result of recent acquisitions in that market.
- Consolidated comparable store sales increased by 7.7% and were essentially flat on a local currency basis primarily as a result of the negative comparables in the US store base.
- Internationally comparable store sales grew by 5% or $4.1 million on a local currency basis.

Net income was $13.8 million or 56 cents a share, up 17.9% from $11.7 million or 48 cents per share in the prior year on revenue growth.

- Adjusted EBITDA increased by 23.2 % to $38.3 million versus the prior year’s $31.1 million.
- The firm has stepped up its collection activities by placing additional emphasis on pre-calling customers prior to the due date of their loan, in order to establish a convenient time for them to come into our stores and repay their loan.
- Store and regional margins increased by 22.1% to $51.2 million reflecting the previously announced increased investment in management and infrastructure to support the enhanced store expansion plans and acquisitions.
- The company had cash available for investments and future acquisitions of $50 million.
- Additionally, it had $105 million in revolving credit lines that were undrawn.

Operational Highlights:

- The firm continues to execute on its multi-country, multi-product and multi-channel growth strategy by increasing the global store footprint by 29 stores.
- These consisting of 14 de novo stores, along with the acquisition of 15 additional stores through out the US, Canadian and UK markets.
- Additionally, on April 3, 2008, Dollar Financial opened first store in the Euro zone in the Republic of Ireland, which has both excellent customer demographics and no significant competition.

Internationally the Canadian and UK economies, while still growing, seem to be slowing down somewhat.

- Much of the financial difficulty in the US appears to revolve around the housing market.
- While it expects the effect of the decline in the housing market to ripple through the overall economy at varying degrees, fewer than 25% of the firm’s customers own their own homes; hence the customer base is expected to be impacted to a lesser degree.
- The firm’s consumer owned products are very short term in nature and given any economic weakness in any of the markets, the firm can quickly curtail its lending practices and reduce the overall risk exposure.
- As a result the consolidated loan loss division, as a percentage of gross consumer lending revenues, was 19.1%, which declined from 220.8% in the prior year.

Update on the Canadian business:

- The Canadian business unit generated $62.5 million in total revenue, which represents an increase of 19.7% over the prior year’s quarter.
- Check cashing revenue in Canada increased by 18.1%, while consumer lending revenue increased by 16.8%.
- The easy tax prior from Canada generated $3.6 million, as compared to $2.2 million for the prior year, while the debit card business grew by $600,000, or 39.5%.

The firm now has 200,000 active quotas of the money market titanium MasterCard.

- Additionally, the firm opened eight de novo stores in Canada while acquiring 13 additional store locations.
- Reduced magnitude and tone of the marketing and advertising campaign resulted in a moderate softening of new customer growth in Canada.
- Additionally, over the past four quarters, the firm has accelerated the de novo store development program to better position the company to capture the market growth that will come with regulatory clarity.

Approximately 52% of the Canadian consumer lending revenue was generated in the province of Ontario, with 21% in British Columbia, 18% in Alberta and 5% in Manitoba.