Revenue levels, operating incomes and net income continued to improve significantly this quarter as a result of the maturation of earlier opened stores
Gordon J. Reykdal, President and Chief Executive Officer, Rentcash
 

Rentcash Inc (TSXV: RCS) announced record net income of $3.3 million for the third quarter ended March 31, 2005 up from net income of $2.5 million for the second quarter ended December 31, 2004. The company reported a net loss of $176,608 for the same quarter last year.

The Company opened 32 new stores during the quarter for a total of 227 stores compared to 19 new store openings and a total of 123 stores at March 31, 2004. Same store revenues year over year for Rentcash's two divisions increased by 144%, with The Cash Store division's same store revenues increasing by 177% and Insta-rent's same store revenues rising by 54%.

Same store average revenues increased on a consolidated basis to $109,000 per store for the current quarter up from $45,000 per store for the quarter ended March 31, 2004. On a segmented basis, the brokerage division experienced an increase in same store average revenues to $114,000 per store for the current quarter up from $41,000 per store for the quarter ended March 31, 2004. The rental-purchase division also experienced an increase in same store average revenues to $90,000 for the current quarter, up from $59,000 per store for the quarter ended March 31, 2004.

"This is our fourth consecutive quarter of positive financial growth," says Rentcash Inc. President and Chief Executive Officer, Gordon J. Reykdal. "Revenue levels, operating incomes and net income continued to improve significantly this quarter as a result of the maturation of earlier opened stores. We expect this trend to continue as the maturity level of stores is reached and new store operating losses are absorbed."

"In addition to our strong financial performance, we successfully completed a broker assisted private placement for the issuance of 2.4 million shares at a share price of $14.50, which yielded gross proceeds of $34.8 million," Reykdal added.

"The Company subsequently acquired the assets, including 99 store locations, of Instaloans on April 21, 2005 (see story). Rentcash Inc. is now the largest payday advance provider in Canada. This acquisition demonstrates another aspect of our aggressive growth policy and will deliver value to our shareholders through increased market share in the payday loan industry and contribute positively to the Company's future financial results."

As of March 31, 2005, Rentcash operated 227 stores in nine provinces and two territories, 158 of which were Cash Stores and 69 were Insta-rent outlets. The Company has more than 1,100 associates and has its corporate office in Edmonton, Alberta.