Dollar Financial Corp Announces Fiscal Third Quarter Results

Company Reports Growth in Adjusted EBITDA on a Constant Currency Basis; Expands
U.K. Operation with Purchase of Established Internet-Based Consumer Lending
Business
BERWYN, Pa.--(Business Wire)--
Dollar Financial Corp (NASDAQ:DLLR - News), a leading international diversified
financial services company serving unbanked and under-banked consumers, today
announced its results for the fiscal third quarter ended March 31, 2009.

Fiscal 2009 Third Quarter Highlights

* Consolidated total revenue was $118.2 million for the quarter compared to
$149.3 million for the prior year`s quarter. On a constant currency basis, when
applying the currency exchange rates from the third quarter of the prior fiscal
year to the current quarter`s results, total consolidated revenue, which was
nominally impacted by the global recession and a tightening of the Company`s
lending standards, decreased by 5.5% to $141.1 million.
* The total loan loss provision, which on a consolidated basis was negatively
impacted by a lower mix of foreign loans as a result of a stronger U.S. Dollar,
nevertheless improved to 17.5% of gross consumer lending revenue for the
quarter, as compared to 19.1% for the third quarter of the prior fiscal year.
* As a result of cost reduction initiatives across all of the Company`s
geographic markets, store and regional margin, on a constant currency basis,
improved to 35.5% of total revenue compared to 34.3% for the third quarter of
the prior year.
* Consolidated adjusted EBITDA was $30.8 million compared to $38.1 million for
the prior year`s quarter, however consolidated adjusted EBITDA for the quarter
increased slightly over the previous year to $38.3 million on a constant
currency basis from $38.1 million for the prior year period.
* Income before income taxes, which was unfavorably impacted by the
translational effects of the Canadian and U.K. results into U.S. Dollars, was
$16.3 million for the quarter compared to $22.6 million for the prior year
period; similarly net income was $7.9 million compared to $13.8 million for the
prior year`s quarter, while fully-diluted earnings per share was $0.33 for the
current quarter compared to $0.56 for the prior year period.
* On a constant currency basis and excluding non-recurring charges, pro forma
income before income taxes was $22.0 million for the quarter compared to $22.8
million for the prior year period, while pro forma net income and fully-diluted
earnings per share were $12.5 million and $0.52, respectively as compared to
$13.0 million and $0.53, respectively for the prior year period.

Commenting on the results for the quarter, Jeff Weiss, the Company`s Chairman
and Chief Executive Officer, stated, "Overall I am pleased with the performance
of our business this quarter, especially given the extremely challenging
macroeconomic environment. The U.K. business continues to be an exciting growth
story for us where we now have a significant share of the market and an
opportunity to further increase our brand awareness through targeted advertising
campaigns. In addition, consistent with our diversified global business
strategy, we are pleased to announce that on April 21, 2009 we completed the
acquisition of an established profitable U.K. internet-based consumer lending
business which is immediately accretive. The acquired company is competitively
positioned in a rapidly growing market and further expands our expertise within
the internet lending arena. Moreover, we believe we can export and leverage this
expertise to other European countries as well as our Canadian business unit. The
cash acquisition price was approximately $7.0 million including the $3.0 million
value of the loan book. EBITDA for the twelve months following the acquisition
is anticipated to be between $3.0 million and $4.0 million including transition
costs.

In Canada, as the regulatory environment clarifies, we believe we are well
positioned as the lowest cost provider, to leverage significant opportunities to
further grow our business through store or customer accounts acquisitions from
less efficient competitors at attractive prices. Our U.K. and Canadian
businesses continue to be the key drivers of our international platform, making
up approximately 80% of our consolidated Company store and regional margin.
Although our U.S. business is not a core focus, we continue to execute on our
plan to rationalize and improve profitability. We intend to further prune our
U.S. store base, generally closing under-performing stores as leases expire
until we achieve a core of profitable stores in states with more favorable
regulatory terms.

In spite of these economically challenging times, we remain confident in the
strength and resiliency of our diversified multi-product, multi-country and
multi-channel business model. Our continuing strong cash flow from operations
and solid liquidity positions us well to continue to take advantage of
attractive global acquisition and expansion opportunities in existing and
prospective new markets, as well as supports the development and launch of new
products through our global multi-channel business platform. Additionally, we
expect the various cost reduction initiatives and operating efficiency
improvements we have implemented over the past several months will enable us to
continue to weather and ultimately emerge from this recession an even stronger
Company that is well positioned for sustained profitable growth."

Business Review

In the third quarter, the Company saw a further decline in the number of checks
cashed in all of its business units, and for the first time began to see some
moderate erosion in its consumer lending business, as the global economic
contraction continued to weigh on customers with job losses from the deepening
recession extending further into the overall economy. However, despite having to
navigate through what is arguably the worst economic conditions the Company may
ever have to face, total consolidated revenue for the Company was down only 5.5%
over the prior year`s quarter on a constant currency basis, while adjusted
EBITDA, as a result of a number of cost reduction and efficiency improvement
initiatives, increased slightly year-over-year.

The Company`s customer base is generally composed of service sector workers who
typically work in non-discretionary jobs, the nature of which tends to dampen
fluctuations in employment from cyclical swings in the overall economy. However,
due to the depth of the current global recession, the period of transitional
unemployment whereby our customers typically migrate from one generally skilled
job to another, as a result of a layoff or job furlough, is naturally longer
than in previous less severe economic downturns. Notwithstanding the current
state of the global economy, there is still a real need for the basic front line
services provided by the Company`s customer base, as someone still needs to care
for the sick and injured in hospitals, maintain the country`s infrastructure,
stock the shelves at grocery stores, and work the cash registers at convenience
stores. Therefore, the Company believes employment for its customer base should
stabilize faster than most other sectors of the economy, once the global
economies begin their inevitable recovery.

Consumer lending in the U.K. continues to benefit from a growing market for the
Company`s loan products, in addition to strong growth in the pawn business,
which primarily consists of loans on collateralized gold jewelry. Pawn lending
continues to be an area of focus in the U.K. and presents an opportunity to
transfer the Company`s growing expertise with this product to its U.S. and
Canadian stores. A low penetration of retail locations to under-banked consumers
presents an opportunity to continue to expand the Company`s customer base in the
United Kingdom through additional de novo store builds and accretive
acquisitions. In addition, the Company intends to continue to introduce new
products, and last month launched an internet based gold purchase program.

In Canada, provincial regulation presents a significant opportunity to leverage
the Company`s position as the lowest cost provider. Many higher cost mono-line
competitors will likely not be able to operate profitably under provincial
regulation presenting an opportunity to acquire stores or customer accounts from
some of these less efficient competitors at attractive prices. Furthermore, the
Company expects to resume its advertising campaigns in Canada, which were
temporarily suspended during the regulatory process, once provincial regulation
is finally established. This should facilitate the resumption of new customer
growth in the Company`s Canadian stores.

The U.S. financial services business is not currently a strong area of focus, as
approximately 80% of the Company`s consolidated store and regional margin is
generated outside of the United States in Canada and the United Kingdom. The
uncertain regulatory landscape at both the state and federal levels, in addition
to a fairly saturated market in terms of the number of retail locations to the
under-banked population, makes the U.S. payday lending business a less
compelling investment opportunity in the near-term compared to other markets and
new product opportunities. However, certain other business products, such as the
acquisition of a secured lending business in the U.S., would serve to further
diversify the Company`s global business model and presumably would allow the
Company to take advantage of its large U.S. tax net operating losses.

As part of the Company`s continuing plan to rationalize and improve the
profitability of its U.S. business, the Company intends to continue to prune its
U.S. store base generally closing under-performing stores as leases expire until
a core of profitable stores is achieved in states with more favorable regulatory
terms. As part of this initiative, the Company is planning to sell or close
approximately 60 U.S. financial services stores or about 15% of the Company`s
U.S. financial services store base in the fourth quarter of the current fiscal
year. In general, these are underperforming stores located in states with
uncertain or less favorable regulation, or are located in states where the
Company only has a few stores resulting in an inefficient and more costly
support infrastructure. The Company anticipates these store closures will result
in additional annual EBITDA of between $1.5 million and $2.5 million including
reductions in store support costs. Additionally, these store closures will free
up cash previously used to fund the loan portfolio and working capital
requirements of the closed stores, which can then be redeployed in other areas
of the growing international business. The one-time costs associated with the
store closures are anticipated to be between $2.0 million and $3.0 million, of
which approximately $1.0 million is associated with the non-cash write-off of
fixed assets.

Third Quarter Fiscal 2009 Financial Results

The U.S. Dollar strengthened significantly during the quarter with respect to
the Canadian and U.K. currencies as compared to the prior year, and as a
majority of the Company`s consolidated revenue is generated outside of the
United States in Canada and the U.K., the reported results for the Company`s
foreign subsidiaries were negatively impacted on a non-cash basis when
translated into U.S. Dollars, as required by U.S. generally accepted accounting
principles. Importantly, as the Company continues to reinvest the cash generated
by its Canadian and U.K. business units back into those businesses, and does not
typically repatriate the foreign earned cash to the Company`s U.S. entity,
fluctuations in currency exchange rates presently have no near term cash flow
impact on the Company`s operations. Therefore, in order to better explain and
compare the performance of the business units for the quarter, excluding the
effects of accounting based currency translations, the Company will also provide
metrics for the quarter on a constant currency basis.

On a constant currency basis, total check cashing revenue was $43.4 million for
the quarter ended March 31, 2009, representing a decrease of $8.1 million. In
the midst of the current recession, when the potential for fraudulent checks
being presented is higher, the Company is employing a more cautious approach to
cashing checks which includes a focus on net margin as opposed to gross fees.
Accordingly, net write-offs of returned checks, as a percentage of check cashing
revenue, decreased to 4.9% for the quarter compared to 7.3% for the prior fiscal
year. Check cashing fees in Canada decreased by C$2.1 million or 10.9%, while
check cashing revenue in the U.K. declined by £1.6 million or 22.7%. Rising
unemployment and the shrinking construction industry in the London area,
principally due to the slowing housing market, were the primary drivers of the
decreased check cashing fees in the United Kingdom. Check cashing revenue in the
U.S. decreased by 15.2% or $2.9 million, and similarly to Canada, was impacted
by increasing unemployment and fewer payroll checks being cashed.

Also on a constant currency basis, consolidated consumer lending revenue was
$70.3 million, resulting in a moderate decrease of $3.0 million or 4.1% for the
fiscal third quarter, as compared to the same quarter in the prior year.
Consumer lending revenue in the U.K. increased by a healthy 23.6% or £2.0
million for the quarter compared to the prior fiscal year`s quarter. While the
Company has taken a more cautious approach to lending in all of its markets due
to the slowing economy, whereby focusing more on net profit as opposed to gross
lending fees, the U.K. business continues to benefit from growing consumer
awareness of the Company`s loan products and also strong growth in pawn lending.
Total revenue generated by the pawn business in the U.K. was £2.2 million for
the quarter, as compared to £1.6 million for the prior year`s quarter,
representing a year-over-year increase of 37.5%.

Consumer lending revenue in Canada declined by 8.0% or C$2.8 million compared to
the previous year`s quarter. As discussed in past earnings releases, the Company
diminished the scale and tone of its Canadian marketing and advertising
campaigns, as many of the Canadian provinces are actively engaged in formulating
and/or instituting their respective consumer lending regulations and rate
structures. Accordingly, as expected, new customer growth in Canada has
softened. In the U.S., as in Canada, increasing unemployment through all sectors
of the economy in the third quarter negatively impacted consumer lending
volumes, as U.S. lending revenue decreased 18.5% to $18.0 million for the
quarter. The closure of the underperforming U.S. and Canadian stores in the
first quarter of the current fiscal year also contributed to lower
year-over-year lending volumes in those markets.

On a constant currency basis, total company funded loan originations for the
quarter decreased by 5.1% or $24.3 million, as compared to the prior year
period. Company funded loan originations in the U.K. increased by 23.0% or £10.8
million for the quarter. In the U.S., Company funded loan originations decreased
by 15.9% or $24.7 million and in Canada decreased by C$21.0 million or 9.3% for
the fiscal third quarter, primarily due to the weakening economy and increased
unemployment, and the store closures.

Money transfer fees, on a constant currency basis, increased by 4.4% to $7.2
million, as compared to the third quarter of the prior fiscal year, driven by
growth in the Company`s foreign business units. Other revenue, excluding the
impact of changes in currency exchange rates, increased by 14.6% or $2.6
million, primarily as a result of additional pawn merchandise and related scrap
sales, and increased foreign exchange product revenue in the United Kingdom.

On a constant currency basis, store and regional margin was $50.2 million for
the current quarter representing a nominal decrease of $1.0 million from the
prior year period. Due to the global recession, the Company instituted a number
of cost reduction initiatives across all of the Company`s markets. As a result,
store and regional margin on a constant currency basis improved to 35.5%, as a
percentage of total revenue, from 34.3% for the prior year`s quarter. Although
it is difficult to predict the continuing depth and duration of the current
recession, the Company continues to regulate its labor and other variable store
costs with fluctuations in customer transaction volume. Corporate costs also
decreased on a constant currency basis to $17.5 million for the current quarter
from $17.9 million for the prior year`s quarter.

On a constant currency basis and excluding non-recurring charges, pro forma
income before income taxes was $22.0 million for the quarter, as compared to
$22.8 million for the prior year`s quarter. Pro forma net income, considering a
pro forma effective income tax rate of 43.0%, was $12.5 million, representing a
slight decrease of $0.5 million over the prior year`s quarter. Likewise, on a
constant currency basis and excluding non-recurring charges, pro forma
fully-diluted earnings per share was $0.52 for the quarter compared to $0.53 for
the prior year`s quarter.

Income before income taxes, on a GAAP basis and including approximately $700,000
of non-recurring store closing costs, was $16.3 million compared to $22.6
million for the previous year`s quarter. Net income, which includes an effective
income tax rate for the quarter of 51.4%, was $7.9 million, while fully-diluted
earnings per share were $0.33 for the quarter ended March 31, 2009. The
effective income tax rate for the quarter was unfavorably impacted by a lower
mix of foreign earned income, which have lower statutory rates, as a result of
the strengthened value of the U.S. Dollar and the translation of the Company`s
foreign subsidiary results into U.S. Dollars, as well as the U.S. store closure
costs principally incurred in the first quarter of the current fiscal year.

Company`s Liquidity Position

The Company has a very strong liquidity position with ample excess cash
available for investment in growth initiatives. The consolidated cash amount
reported in the Company`s balance sheet for the period ending March 31, 2009,
which includes cash in the Company`s foreign business units, was reduced by
$41.6 million due to the strengthening of the U.S. Dollar and the related
translation of the Company`s foreign denominated cash accounts into U.S.
Dollars, per U.S. generally accepted accounting principles. As these foreign
cash accounts are maintained in Canada and the U.K. in local currency, on an
operational basis there is no present diminution in value from changes in
currency rates, and as a result these cash balances are still fully available to
fund the daily operations and growth of the U.K. and Canadian business units.
Given the current economic climate, the Company intends to continue to manage
its cash flow prudently by balancing the near term strategy to increase cash
holdings, while at the same time take advantage of the Company`s acquisitions
pipeline with the purchase of attractively priced acquisitions in existing and
prospective markets.

At March 31, 2009, the Company`s global revolving credit facilities were
undrawn, and as a result $75.0 million was available on its credit facility in
the U.S., C$28.5 million was undrawn in Canada, with £5.0 million undrawn in the
U.K. These available undrawn facilities are in addition to the Company`s
substantial annual free cash flow from its business operations. Furthermore, the
Company`s long-term debt portfolio buttresses its strong liquidity position, as
the interest rate on the convertible notes is fixed at 2.875%, and on the term
debt, the LIBOR-based rates have been synthetically fixed at a weighted average
blended rate of 7.4% for the term of the notes. The convertible notes are not
due until June 2027, and are not callable or putable until December 2012, and
there are no debt principal repayment requirements until potentially December
2012, or about four years from now. The term notes do not mature until October
2012, and in the interim period until maturity, the required principal
repayments amount to just $3.7 million annually.

Company`s Fiscal 2009 Outlook

In the third quarter, there was a further strengthening of the U.S. Dollar in
relation to the Canadian Dollar and British Pound Sterling, which on a
year-over-year basis has now strengthened by nearly 20% against the Canadian
Dollar and nearly 30% against the Pound Sterling. As about 80% of the Company`s
store margin is generated outside the U.S. in Canada and the U.K., the increased
value of the U.S. Dollar has a considerable impact on the Company`s earnings,
when translated into U.S. Dollars per generally accepted accounting principles.
The accounting based translation of earnings into U.S. Dollars is a non-cash
adjustment, as the Company`s foreign earned income is generally maintained in
the respective countries to fund local country growth. However, given the
continuing and further strengthening of the U.S. currency subsequent to the
Company`s previously issued guidance, along with a further deterioration in the
global economies, the Company anticipates that its reported earnings per share
for the fiscal year will be towards the low end of its previous guidance range.
Accordingly, as the completion of the fiscal year nears, the Company is revising
its fiscal 2009 guidance for earnings per share to between $1.65 and $1.75 per
fully diluted share, excluding the impact of the additional one-time store
closure costs expected to be accrued in the fourth quarter ending June 30, 2009.

Investors Conference Call

Dollar Financial Corp will be holding an investor`s conference call on
Wednesday, April 29, 2009 at 5:00 pm ET to discuss the Company`s results for the
fiscal third quarter ended March 31, 2009 and the Company`s fiscal 2009 outlook.
Investors can participate in the conference by dialing (888) 200-2794 (U.S. and
Canada) or (973) 935-8766 (International); use the confirmation code "Dollar".
Hosting the call will be Jeff Weiss, Chairman and CEO and Randy Underwood,
Executive Vice President and CFO. For your convenience, the conference call can
be replayed in its entirety beginning from two hours after the end of the call
through May 6, 2009. If you wish to listen to the replay of this conference
call, please dial (706) 645-9291 and enter passcode "93310775".

The conference call will also be broadcast live through a link on the Investor
Relations page on the Dollar Financial web site at http://www.dfg.com. Please go
to the web site at least 15 minutes prior to the call to register, download and
install any necessary audio software.

About Dollar Financial Corp

Dollar Financial Corp is a leading diversified international financial services
company serving unbanked and under-banked consumers. Its customers are typically
service sector individuals who require basic financial services but, for reasons
of convenience and accessibility, purchase some or all of their financial
services from the Company rather than from banks and other financial
institutions. To meet the needs of these customers, the Company provides a range
of consumer financial products and services primarily consisting of check
cashing, short-term consumer loans, pawn lending, Western Union money order and
money transfer products, currency exchange, reloadable VISA and MasterCard
branded debit cards, electronic tax filing, and bill payment services.

At March 31, 2009, the Company`s global store network consisted of 1,264 stores,
including 1,078 company-operated financial services stores and 186 franchised
and agent locations in the United States, Canada, Republic of Ireland and the
United Kingdom. The financial services store network is the largest network of
its kind in each of Canada and the United Kingdom and the second-largest network
of its kind in the United States. The Company`s customers, many of whom receive
income on an irregular basis or from multiple employers, are drawn to the
convenient neighborhood locations, extended operating hours and high-quality
customer service. The Company`s financial products and services, principally
check cashing, money transfer, and short-term consumer loan programs, provide
immediate access to cash for living expenses or other needs. For more
information, please visit the Company's website at www.dfg.com.

Forward Looking Statement

This news release contains forward looking statements, including statements
regarding the following: the Company`s future results, growth, guidance and
operating strategy; the global economy; the effects of currency exchange rates
on reported operating results, the developing regulatory environment in Canada
and the United States; the impact of future development strategy, new stores and
acquisitions; the implementation and expected results of restructuring
initiatives; and of the performance of new products and services. These forward
looking statements involve risks and uncertainties, including uncertainties
related to the effects of changes in the value of the U.S. dollar compared to
foreign currencies, risks related to the regulatory environments, current and
potential future litigation, the integration and performance of acquired stores,
the performance of new stores, the implementation and expected results of
restructuring initiatives, the impact of debt financing transactions, the
results of certain ongoing income tax appeals, and the effects of new products
and services on the Company`s business, results of operations, financial
condition, prospects and guidance. There can be no assurance that the Company
will attain its expected results, successfully integrate any of its
acquisitions, attain its published guidance metrics, or that ongoing and
potential future litigation or that the various FDIC, Federal, state, Canadian
or foreign legislative or regulatory activities affecting the Company or the
banks with which the Company does business will not negatively impact the
Company`s operations. A more complete description of these and other risks,
uncertainties and assumptions is included in the Company`s filings with the
Securities and Exchange Commission, the Company`s annual reports and form 10-Q`s
and 10-K`s. You should not place any undue reliance on any forward-looking
statements. We disclaim any obligation to update any such factors or to publicly
announce results of any revisions to any of the forward-looking statements
contained herein to reflect future events or developments.

Presentation of Information in this Press Release

In an effort to provide investors with additional information regarding the
Company`s results, the Company has also disclosed in this press release the
following information which management believes provides useful information to
investors:

* Constant currency results (the Company calculates constant currency operating
results by comparing current period operating results with prior period
operating results, with both periods converted at the currency exchange rates
for the prior period).
* Pro forma operating results excluding non-recurring charges and adjusted for
pro forma effective income tax rates.

DOLLAR FINANCIAL CORP
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In thousands)

June 30, March 31,
2008 2009
Assets:
Cash and cash equivalents $ 209,714 $ 191,567
Loans receivable, net:
Loans receivable 123,683 93,153
Less: Allowance for loan losses (8,466 ) (8,131 )
Loans receivable, net 115,217 85,022
Loans in default, net 11,930 9,906
Prepaid expenses and other receivables 29,158 25,952
Fair value of derivatives - 28,104
Deferred tax assets, net 12,191 11,620
Property and equipment, net 68,033 53,312
Goodwill and other intangibles 470,731 416,670
Debt issuance costs and other assets, net 25,949 24,885

Total Assets $ 942,923 $ 847,038

Liabilities:
Accounts payable $ 56,636 $ 38,239
Income taxes payable 12,194 9,831
Accrued expenses and other liabilities 37,998 32,496
Fair value of derivatives 37,214 -
Deferred tax liability 22,352 21,273
Revolving credit facilities 5,341 -
Long-term debt 577,863 567,339
Total Liabilities 749,598 669,178

Shareholders' Equity:
Common stock 24 24
Additional paid-in capital 255,197 256,055
Accumulated deficit (95,950 ) (63,018 )
Accumulated other comprehensive income (loss) 34,054 (15,201 )
Total shareholders' equity 193,325 177,860

Total Liabilities and Shareholders' Equity $ 942,923 $ 847,038

DOLLAR FINANCIAL CORP
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except share and per share amounts)

Three Months Ended Nine Months Ended
March 31, March 31,
2008 2009 2008 2009

Revenues:
Check cashing $ 51,503 $ 37,263 $ 146,025 $ 127,419
Fees from consumer lending 73,316 58,551 215,419 210,054
Money transfer fees 6,921 5,957 19,960 20,351
Other 17,573 16,393 40,486 45,589
Total revenues 149,313 118,164 421,890 403,413

Store and regional expenses:
Salaries and benefits 42,778 34,429 116,661 111,507
Provision for loan losses 14,023 10,242 44,899 40,392
Occupancy costs 11,359 9,863 30,790 31,503
Returned checks, net and cash shortages 4,973 2,866 14,226 13,228
Depreciation 3,597 3,057 9,620 9,819
Bank charges and armored carrier services 3,611 3,174 9,954 9,937
Telephone and communication costs 1,917 1,739 5,367 5,616
Advertising 2,602 1,451 7,426 6,659
Other 13,287 10,748 35,739 36,073
Total store and regional expenses 98,147 77,569 274,682 264,734
Store and regional margin 51,166 40,595 147,208 138,679

Corporate and other expenses:
Corporate expenses 17,893 15,452 52,621 52,566
Interest expense, net 9,771 8,144 26,837 26,163
Other depreciation and amortization 854 925 2,663 2,903
Loss on store closings 176 644 369 6,137
Other (income) expense, net (159 ) (832 ) (323 ) (5,992 )
Income before income taxes 22,631 16,262 65,041 56,902
Income tax provision 8,802 8,361 26,194 23,970
Net income $ 13,829 $ 7,901 $ 38,847 $ 32,932

Net income per share
Basic $ 0.57 $ 0.33 $ 1.61 $ 1.37
Diluted $ 0.56 $ 0.33 $ 1.58 $ 1.37

Weighted average shares outstanding
Basic 24,120,797 23,951,974 24,087,467 24,024,628
Diluted 24,522,485 24,007,851 24,590,362 24,114,896

Pro forma Net Income Reconciliation

Pro forma Net Income is not an item prepared in accordance with GAAP. Pro forma
Net Income is net income adjusted to exclude one-time charges as described
below. Dollar presents Pro forma Net Income as an indication of the Company`s
financial performance excluding one-time charges to show comparative results of
its operations. Not all companies calculate Pro forma Net Income in the same
fashion, and therefore these amounts as presented may not be comparable to other
similarly titled measures of other companies. The table below reconciles income
before income taxes as reported on Dollar`s Unaudited Consolidated Statements of
Operations to Pro forma Net Income (dollars in thousands):

DOLLAR FINANCIAL CORP
PRO FORMA NET INCOME
(EXCLUDING ONE-TIME CHARGES)
(In thousands except share and per share amounts)

Three Months Ended Nine Months Ended
March 31, March 31,
2008 2009 2008 2009

Income before income taxes - as reported $ 22,631 $ 16,262 $ 65,041 $ 56,902

Non-recurring charges:
Loss on store closings 176 644 369 6,137
Other 5 45 399 554
Pro forma income before income taxes 22,812 16,951 65,809 63,593
Pro forma income taxes 9,809 7,289 28,298 27,345
Pro forma net income $ 13,003 $ 9,662 $ 37,511 $ 36,248
Pro forma effective income tax rate 43.0 % 43.0 % 43.0 % 43.0 %

Weighted average fully-diluted shares outstanding 24,522,485 24,007,851 24,590,362 24,114,896

GAAP fully-diluted earnings per share $ 0.56 $ 0.33 $ 1.58 $ 1.37

Pro forma fully-diluted earnings per share $ 0.53 $ 0.40 $ 1.53 $ 1.50

Adjusted EBITDA Reconciliation

Adjusted EBITDA is not an item prepared in accordance with GAAP. Adjusted EBITDA
is earnings before interest expense, income tax provision, depreciation,
amortization, charges related to non-qualified stock options and restricted
shares, and other items described below. Dollar presents Adjusted EBITDA as an
indication of operating performance and its ability to service its debt and
capital expenditure requirements. Adjusted EBITDA does not indicate whether
Dollar`s cash flow will be sufficient to fund all of its cash needs. Adjusted
EBITDA should not be considered in isolation or as a substitute for net income,
cash flows from operating activities, or other measures of operating performance
or liquidity determined in accordance with GAAP. Not all companies calculate
Adjusted EBITDA in the same fashion, and therefore these amounts as presented
may not be comparable to other similarly titled measures of other companies. The
table below reconciles income before income taxes as reported on Dollar`s
Unaudited Consolidated Statements of Operations to Adjusted EBITDA (dollars in
thousands):

Three Months Ended Nine Months Ended
March 31, March 31,
2008 2009 2008 2009

Income before income taxes $ 22,631 $ 16,262 $ 65,041 $ 56,902

Add:
Depreciation and amortization 4,451 3,982 12,283 12,722
Interest expense, net 9,771 8,144 26,837 26,163
Stock based compensation expense 1,066 1,762 2,778 4,490
Loss on store closings 176 644 369 6,137
Other (25 ) 47 (309 ) 525
Adjusted EBITDA $ 38,070 $ 30,841 $ 106,999 $ 106,939

DOLLAR FINANCIAL CORP
UNAUDITED STORE DATA

Three Months Ended Nine Months Ended
March 31, March 31,
2008 2009 2008 2009
Beginning Company-Operated Stores
U.S. 470 418 350 467
Canada 397 401 360 419
U.K. 221 259 192 236
Total Beginning Company-Operated Stores 1,088 1,078 902 1,122

De novo Store Builds
U.S. 0 0 2 3
Canada 8 0 38 0
U.K. 6 2 14 17
Total 14 2 54 20

Acquired Stores
U.S. 2 0 126 2
Canada 13 0 21 0
U.K. 0 0 22 8
Total 15 0 169 10

Closed Stores
U.S. 6 0 12 54
Canada 0 1 1 19
U.K. 0 1 1 1
Total 6 2 14 74

Ending Company-Operated Stores
U.S. 466 418 466 418
Canada 418 400 418 400
U.K. 227 260 227 260
Total Ending Company-Operated Stores 1,111 1,078 1,111 1,078

Ending Franchise/Agent Stores
U.S. 97 57 97 57
Canada 60 61 60 61
U.K. 186 68 186 68
Total Ending Franchise/Agent Stores 343 186 343 186

Total Ending Store Count 1,454 1,264 1,454 1,264

Dollar Financial Corp
Financial Dynamics
Julie Prozeller/Grace Su, 212-850-5600

Copyright Business Wire 2009