We believe [selling or spinning off the rental division] will provide better clarity on both business models and have a positive long term impact on shareholder value.
Gordon Reykdal, Chairman and CEO, RentCash

RentCash CEO Gordon Reykdal was featured in the November, 2005 print edition of RTO Magazine. Download entire November, 2005 issue.

RentCash Inc. will sell or spin-off it's Insta-Rent rent to own division. CEO Gordon Reykdal said the move will improve focus. Insta-Rent posted a loss for fiscal 2006.

RentCash operates 92 Insta-rent locations including 6 stand-alone stores, 67 kiosks in "The Brick" and 19 in "United Furniture Warehouse" stores. The Brick and United Furniture Warehouse locations are part of The Brick Group, one of Canada's largest volume retailers of household furniture, mattresses, appliances and home electronics.

Rentcash operates a total of 430 stores across Canada under three banners: The Cash Store, Instaloans and Insta-rent. The Cash Store and Instaloans act as brokers to facilitate payday advance services and provide two private-label debit cards, The Cash Store Cash Card and InstaWorld Debit Card. The company employs more than 1,700 people and is headquartered in Edmonton, Alberta.

RentCash also reported it's results for the quarter ending June 30th, 2006. Mr. Gordon Reykdal, Chairman and CEO commented, "I'm pleased to report a record year with strong overall performance in 2006. Rentcash's management team and all associates deserve credit for our continued success. We are all looking forward to an exciting 2007 where our focus will be on controlled profitable growth. We plan to open approximately 30 new brokerage stores in 2007, but a significant amount of our attention will be on the existing store base. In the fourth quarter, the 54 Cash Stores in operation for a period of more than three years generated average revenues of $125,000, compared to $73,000 for the 181 stores in operation for a period of less than three years. With this significant potential to increase revenues, and ultimately earnings, we are well positioned to deliver solid financial performance in future years."

RentCash Chairman and CEO Gordon J. Reykdal will be presenting at the Roth Capital Partners 2006 New York Conference on Thursday, September 7, 2006 at 9:30 am EDT. A live webcast of the presentation will be available during the presentation here.

RentCash Fourth Quarter Highlights

- Net income of $3.6 million, compared to $144,000 for the same quarter last year

- Diluted earnings per share of $0.18, compared to $0.01 for the same quarter last year

- Revenues increased 17 percent to $37.6 million

- Retention payments to lenders (formerly administrative allowance provision) totaled $3.6 million, compared to $8.9 million for the same quarter last year

- Cash and cash equivalents of $12.9 million at June 30, 2006, compared to $10.7 million at March 31, 2006

- Six new brokerage stores opened in the quarter

Year-end Highlights (table of results at end of release)

- Net income of $14.0 million, compared to $6.8 million last year

- Diluted earnings per share of $0.67, compared to $0.38 last year

- Revenues doubled to $154.2 million, from $76.8 million last year

- Brokered $556 million in loans, compared to $281 million last year

- Retention payments to lenders (formerly administrative allowance provision) increased to $24.6 million from $10.3 million last year due to the increase in loans brokered and the full year impact of a no rollover policy implemented in January 2005, compared to six months for fiscal 2005

- 430 stores in operation as of June 30, 2006, up 69 from a year ago