Profile: Dollar Financial Corp. (DLLR.O)

Dollar Financial Corp., incorporated on April 1990, is an international financial services company serving banked and unbanked consumers. The Company provides a range of consumer financial products and services consisting of check cashing, single-payment consumer loans, longer-term installment loans, pawn lending, debit cards, phone/gift cards, bill payment, money orders, money transfers, foreign exchange, gold buying and legal document processing services. As at June 30, 2009, the Company’s global store network consisted of 1,206 locations (of which 1,031 are Company-owned) operating as Money Mart, Money Shop, Loan Mart, Money Corner, Insta-Cheques, The Check Cashing Store, American Payday Loans, American Check Casher, Check Casher, Payday Loans, Cash Advance, Cash Advance USA and We The People in 22 states, Canada, the United Kingdom and the Republic of Ireland. The network includes 1,157 locations (including 1,031 Company-owned) in 15 states, Canada, the United Kingdom and the Republic of Ireland offering financial services, including check cashing, single-payment consumer loans, sale of money orders, money transfer services, foreign exchange and various other related services. The Company operates the store network, through its direct wholly owned subsidiary, Dollar Financial Group, Inc.

In April 2009, the Company completed the acquisition of Express Finance Limited, an Internet-based consumer lending business operating in the United Kingdom. On June 30, 2009, the Company acquired a 76% interest rate in Optima, S.A., a consumer lending business operating in Poland. In December 2009, the Company acquired Dealers' Financial Services, LLC.

As of June 30, 2009, the Company operated a total of 358 financial services stores in 15 states, including 99 stores in California, 106 stores in Florida, 37 stores in Arizona, 19 stores in Louisiana and 97 stores in 11 other states. It also has 49 franchised locations operating under the name We The People, which offer retail-based legal document processing services. The financial services store locations offer range of financial products and services, including check cashing and short-term consumer loans. The Company’s 42 Loan Mart stores offer short-term consumer loans, as well as other ancillary services depending upon location.

As at June 30, 2009, the Company had 42 financial services stores in its Canadian network, of which 399 were operated by the Company, and 62 operated by franchisees in 12 of the 13 Canadian provinces and territories with 224 locations in Ontario, 84 locations in British Columbia, 72 locations in Alberta and 81 locations in the other nine provinces and territories. The Company’s stores in Canada are operated under the name Money Mart except locations in the Province of Québec, which operate under the name Instant Cheques. The stores in Canada offer check cashing, short-term consumer loans and other ancillary products and services.

At June 30, 2009, the Company operated 337 financial stores in its United Kingdom network, of which 273 were operated by the Company and 64 operated by franchisees/agents. The Company’s stores in the United Kingdom and Euro-Zone (with the exception of certain franchises operating under the name Cash A Cheque) are operated under the name Money Shop. The stores in the United Kingdom offer check cashing, short-term consumer loans, pawn lending and other ancillary products and services. The Company’s store in the Republic of Ireland offers check cashing and other ancillary products and services.

Check Cashing

The customers may cash all types of checks at the check cashing locations, including government checks and personal checks. In exchange for a verified check, customers receive cash immediately and do not have to wait several days for the check to clear. The Company verifies both the customer’s identification and the validity of the check before distributing any cash.

Consumer Lending

The Company’s United States-based retail financial service locations issue single-payment consumer loans. It also originates unsecured short-term single-payment loans to borrowers for its own account in Canada, the United Kingdom and in the United States markets. During the fiscal year ended June 30, 2009 (fiscal 2009), the Company originated 1827 installment loans with a weighted average term of approximately 58 days in the United States. In fiscal 2009, the Company originated 1531 installment loans with a weighted average term of approximately 278 days. In fiscal 2009, the Company originated 2725 installment loans with a weighted average term of approximately 359 days.

Other Services and Products

In addition to check cashing and short-term loans, the customers may choose from a range of products and services when conducting business at the locations. The services, which vary from store to store include Western Union money order and money transfer products, electronic tax filing, bill payment, foreign currency exchange, pawnbroking, VISA and MasterCard brand reloadable debit cards and gift cards, photo identification (ID), prepaid local and long-distance phone services, gold buying services and legal document processing services in the United States.