OVERLAND PARK, Kan., May 25, 2016 (GLOBE NEWSWIRE) -- QC Holdings, Inc. (OTC PINK:QCCO) reported income from continuing operations of $1.2 million and revenues of $31.7 million for the three months ended March 31, 2016. For the three months ended March 31, 2015, income from continuing operations totaled $1.1 million and revenues were $34.5 million. 

The revenue decline in first quarter 2016 compared to 2015 reflects lower interest and fees from the company’s consumer loan products, indicative of competitive pressures as customers explore alternative loan products and distribution channels.  Loan loss rates were slightly lower in first quarter 2016 versus first quarter 2015, indicative of improvements in installment loan performance. The reduction in revenues exceeded the improved losses, resulting in a gross profit decline of $1.2 million quarter-to-quarter.

During 2016, QC will continue its efforts to introduce competitive products and services across its network, as well as to develop a dynamic online capability that will provide customers greater flexibility in interacting with the company.

About QC Holdings, Inc.
Headquartered in Overland Park, Kansas, QC Holdings, Inc. is a leading provider of consumer loans in the United States and Canada. In the United States, QC offers various products, including single-pay, installment and title loans, check cashing, debit cards and money transfer services, through 389 branches in 22 states at March 31, 2016. In Canada, the company, through its subsidiary Direct Credit Holdings Inc., is engaged in short-term, consumer Internet lending in various provinces.

Forward Looking Statement Disclaimer:  This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the company’s current expectations and are subject to a number of risks and uncertainties, which could cause actual results to differ materially from those forward-looking statements. These risks include (1) changes in laws or regulations or governmental interpretations of existing laws and regulations governing consumer protection or short-term lending practices, (2) uncertainties relating to the interpretation, application and promulgation of regulations under the Dodd-Frank Wall Street Reform and Consumer Protection Act, including the impact of proposed rulemaking by the Consumer Financial Protection Bureau (CFPB), (3) ballot referendum initiatives by industry opponents to cap the rates and fees that can be charged to customers, (4) uncertainties related to the examination process by the CFPB and indirect rulemaking through the examination process, (5) litigation or regulatory action directed towards us or the short-term consumer loan industry, (6) volatility in our earnings, primarily as a result of fluctuations in loan loss experience and closures of branches, (7) risks associated with our dependence on cash management banking services and the Automated Clearing House for loan collections, (8) negative media reports and public perception of the short-term consumer loan industry and the impact on federal and state legislatures and federal and state regulators, (9) changes in our key management personnel, (10) risks associated with owning and managing non-U.S. businesses, and (11) other various risks. QC will not update any forward-looking statements made in this press release to reflect future events or developments.

(Financial and Statistical Information Follows)

QC Holdings, Inc.
Consolidated Condensed Statements of Income
(in thousands, except per share amounts)
 Quarter Ended 
March 31,
  2015   2016 
Consumer loan interest and fees$32,078  $29,209 
Other 2,437   2,464 
Total revenues 34,515   31,673 
Provision for losses 8,062   7,242 
Operating expenses 16,615   15,873 
Gross profit 9,838   8,558 
Corporate and Regional expenses 7,119   6,530 
Other expense, net 956   113 
Income from continuing operations before income taxes 1,763   1,915 
Provision for income taxes 676   693 
Net income$1,087  $1,222 
Earnings per share:   
Net income$0.06  $0.07 
Net income$0.06  $0.07 
Weighted average number of common shares outstanding:       
Basic 17,363   17,333 
Diluted 17,363   17,333 

QC Holdings, Inc.
Consolidated Condensed Balance Sheets
(in thousands)
 December 31,
 March 31,
ASSETS  (Unaudited)
Current assets   
Cash and cash equivalents$  16,115  $  16,678 
Restricted cash   950     950 
Loans receivable, less allowance for losses of $6,395 at  December 31, 2015 and $5,496 at March 31, 2016   50,555     42,751 
Other current assets     6,286       5,639 
Total current assets   73,906     66,018 
Non-current loans receivable, less allowance for losses of $1,556 at  December 31, 2015 and $1,053 at March 31, 2016   3,802     3,337 
Property and equipment, net   4,797     4,727 
Other assets, net     11,486       10,785 
Total assets$  93,991  $  84,867 
Current liabilities   
Accounts payable and other current liabilities$  11,407  $    9,914 
Revolving credit facility   6,250   
Subordinated debt     3,553       3,589 
Total current liabilities   21,210     13,503 
Non-current liabilities   4,967     3,545 
Subordinated debt           
Total liabilities   26,177     17,048 
Stockholders’ equity     67,814       67,819 
Total liabilities and stockholders’ equity$  93,991  $  84,867 

QC Holdings, Inc.
Consolidated Condensed Statements of Cash Flows
(in thousands)
 March 31,
 March 31,
Operating activities:   
Net income$    1,087  $    1,222 
Adjustments to reconcile net income to net cash   9,791     9,514 
Changes in assets and liabilities     2,772     (3,695)
Net operating     13,650       7,041 
Investing activities:   
Capital expenditures   (121)    (466)
Other     1,183       30 
Net investing     1,062       (436)
Financing activities:   
Net repayment of borrowings   (12,000)    (6,250)
Other     (73)      
Net financing   (12,073)      (6,250)
Effect of exchange rate changes on cash and cash equivalents     (186)      208 
Net increase in cash and cash equivalents   2,453     563 
Cash and cash equivalents at beginning of year     14,220       16,115 
Cash and cash equivalents at end of period$  16,673  $  16,678 

Douglas E. Nickerson  (913-234-5154)                                                         
Chief Financial Officer