As at December 31, 2005, RentCash had expanded its national network to 322 payday loan brokerage stores and 94 rent-to-own stores in nine provinces and two territories.

Rentcash Inc (TSXV: RCS) announced second quarter and six month results for the period ended December 31, 2005.

CEO Gordon Reykdal commented, "I'm pleased with the performance of our brokerage division. We were successful in reducing our administrative allowance by over two percent in the quarter. We accomplished this by placing stronger emphasis on the collection process and the credit worthiness of customers brokered to third party lenders. Although these initiatives had a negative impact on loan volume and broker fees generated in the quarter; management believes that they will result in improved profitability."

For the six months ended December 31, 2005 net income increased 108 percent to $7.8 million compared to net income of $3.8 million for the same period in 2004. Net income for the quarter was $3.1 million, compared to net income of $2.5 million for the same quarter in fiscal 2005. Diluted earnings per share were $0.38 for the six months ended December 31, 2005 compared to diluted earnings per share of $0.23 for the same period in 2004. Diluted earnings per share were $0.15 for the quarter ended December 31, 2005 compared to diluted earnings per share of $0.15 for the same period in 2004. Net income on a segmented basis for the six months ended December 31, 2005 for the brokerage division increased 113 percent to $10.3 million compared to net income of $4.8 million for the same period in 2004. Net income for the quarter for the brokerage division was $4.5 million, compared to net income of $3.0 million for the same quarter in fiscal 2005. The second quarter and six month increase in earnings resulted from the company's continued store expansion program, growth in same store sales, the impact of established stores acquired in the fourth quarter of fiscal 2005.

The net loss on a segmented basis for the six months ended December 31, 2005 for the rental division was $796,000 compared to net loss of $52,000 for the same period in 2004. The net loss for the quarter for the rental division was $662,000, compared to a net loss of $20,000 for the same quarter in fiscal 2005. Higher revenues were more than offset by the start-up losses associated with new store openings.

For the six months ended December 31, 2005 total revenues increased to $78.8 million, compared to $26.1 million for the six months ended December 31, 2004. Total revenues were $39.4 million for the quarter ended December 31, 2005 compared to $15.2 million for the same period in 2004. Both divisions experienced significant growth in revenue due to increased stores in operation and growth in same store sales.

Loans brokered for the six months ended December 31, 2005 increased to $293 million, compared to $92 million for the six months ended December 31, 2004. Loans brokered for the quarter ended December 31, 2005 were $145 million compared to $54 million for the same period in 2004.

The administrative allowance provision as a percent of total brokerage revenues was $6.9 million or 20.7 percent for the quarter ended December 31, 2005, compared to $368,000 or 3.0 percent for the same quarter last year and $7.8 million or 23.1 percent for the prior quarter ending September 30, 2005. The administrative allowance was $5.5 million or 16.5 percent for the quarter ended December 31, 2005 after deducting the broker fee portion, which is included in the overall allowance. For the six months ended December 31, 2005 the administrative allowance was $14.8 million or 21.9 percent of total brokerage revenues compared to $561,000 or 2.7 percent for the six months ended December 31, 2004.

Same-store sales year-over-year increased by 34 percent to $103,000 per store for the quarter, up from $76,800 per store for the quarter ended December 31, 2004. The same-store average revenues from brokerage stores increased 30 percent to $110,000 per store for the quarter, up from $84,600 per store for the quarter ended December 31, 2004. In the rental division, there was a 51 percent increase in same-store average revenues to $84,400 per store for the current quarter, up from $55,800 per store for the quarter ended December 31, 2004.

During the second quarter the company opened 24 new brokerage stores and eight new rental centres compared to 20 brokerage stores and four rental centres during the same period in fiscal 2005. For the first six months of fiscal 2006 the company opened 45 new brokerage stores (including six acquired stores) and ten new rental centres compared to 34 new brokerage stores and 17 new rental centres in the first six months of fiscal 2005. In the second half of fiscal 2006 the company plans to open between 20 to 24 new brokerage stores and two new rental centres. The reduced number of new store openings is consistent with the company's focus on improving earnings and cash flow. As at December 31, 2005, the company had expanded its national operating network to a total of 322 brokerage stores and 94 rental centres in nine provinces and two territories.