Printer Friendly

U.S. PAWN INC. REPORTS HIGHER REVENUES AND LOWER EARNINGS FOR FIRST NINE MONTHS

    DENVER, Aug. 13 /PRNewswire/ -- U.S. Pawn Inc. (NASDAQ: USPN) today announced an 8 percent increase in total revenues for the third quarter and a 33 percent increase in revenues for the nine months ended June 30, 1993, as compared to the same periods last year.
    In the third quarter, total revenues increased to $1,587,078 from $1,462,898 a year ago, including an 11 percent increase in pawn service charges and a 7 percent increase in merchandise sales.
    However, the third quarter posted a $55,446 operating loss as compared to an operating profit of $127,063 in the comparable period from last year.  Net loss for the quarter, after accounting for preferred dividends and income tax effects, was $43,365, or less than 1 cent per share, compared to net income of $118,084, or 1 cent per share, in the year-earlier quarter.
   For the nine months, total revenues grew to $5,431,771 from $4,095,178 for the first nine months a year ago.  Pawn service charge income rose 26 percent and merchandise sales increased 40 percent in the first three quarters from 1992's comparable period.
    Operating earnings through the first nine months, before provision for income tax, dropped to $145,369 from $360,826 a year ago.  Net income, after accounting for preferred dividends and tax effects, fell to $63,193 from $333,890 in the comparable period.  Total outstanding shares increased by 10 percent.
    "U.S. Pawn has had to really weather the storm the last two quarters," said Melvin Wedgle, chairman.  "The company normally expects to have high demand for loans during every December, but loan demand this past December was unprecedented and utilized all our available working capital reserves.  To meet our capital needs heading into second quarter, management took the necessary steps to raise working capital solely from internal means at the temporary expense of normally expected profitability.  During third quarter, the company raised additional capital reserves through a new banking relationship, identified and implemented ways to improve our market penetration, and continued to build a sound managerial infrastructure.  Management is confident that the steps we have taken will return the company to profitability in fourth quarter and beyond."
    U.S. Pawn Inc. is the largest publicly held pawn shop company based in Colorado.  The company lends money on a variety of goods primarily jewelry, plus electronics, musical instruments, household items, cars and boats.
                             U.S. PAWN INC.
                       Balance Sheets Highlights
                                 Assets
                                         June 30,     Sept. 30,
                                           1993          1992
                                       (Unaudited)
    Assets:
     Cash                               $165,628      $320,101
     Service charges receivable          338,305       359,939
     Loans                             2,175,812     2,071,592
     Inventory                         1,036,511       846,858
     Property and equipment              994,227       872,604
     Other                               988,657       713,570
    Total assets                       5,699,140     5,184,664
                    Liabilities and Stockholders' Equity
    Liabilities:
     Accounts payable                    $46,952       $39,988
     Customer layaway deposits            40,879        24,627
     Accrued expenses                    148,427       103,465
     Notes payable and long-term debt  1,858,213     1,533,552
     Deferred income taxes                55,240           ---
    Total liabilities                  2,149,711     1,701,632
    Stockholders' equity               3,549,429     3,483,032
    Total liabilities and
     stockholders' equity             $5,699,140    $5,184,664
                             U.S. PAWN INC.
                        Statements of Operations
                              (Unaudited)
                         Three Months Ended         Nine Months Ended
                              June 30,                    June 30,
                         1993          1992         1993           1992
    Revenues:
     Sales           $761,988      $712,719   $2,909,248     $2,071,431
     Pawn service
      charges         790,970       714,860    2,389,437      1,892,943
     Other income      34,120        35,319      133,086        130,804
     Total revenues 1,587,078     1,462,898    5,431,771      4,095,178
    Cost of Sales and
     Expenses:
     Cost of goods
      sold            562,155       636,825    2,350,988      1,695,774
     General operating
      expenses        617,863       358,802    1,686,393        991,094
     Corporate
      overhead        364,708       279,386      958,787        828,027
     Interest          51,910        43,951      157,137        139,954
     Depreciation and
      amortization     45,888        16,871      133,097         79,503
     Total cost of
      sales and
      expenses      1,642,524     1,335,835    5,286,402      3,734,352
    Income (loss)
     from operations
     before income
     taxes            (55,446)      127,063      145,369        360,826
    Provision for
     income taxes     (21,060)          ---       55,240            ---
    Net income (loss) (34,386)      127,063       90,129        360,826
    Dividends on
     preferred stock   (8,979)       (8,979)     (26,936)       (26,936)
    Net income (loss)
     available for
     common stock    ($43,365)     $118,084      $63,193       $333,890
    Earnings (loss)
     per common share
     and common share
     equivalents           (a)        $0.01        $0.01          $0.04
    Weighted average
     number of common
     shares and common
     share equivalents
     outstanding   10,546,802    10,144,622    10,546,222     8,987,126
    (a) ($0.004) per weighted average share.
    -0-             08/13/93
    CONTACT:  Fred A. Baker of U.S. Pawn, 303-571-4704
    (USPN) CO:  U.S. PAWN INC. IN:  REA SU:  ERN ST:  CO


-- LA006 -- X531 08/13/93
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 13, 1993
Words:820
Previous Article:DEVCON INTERNATIONAL REPORTS SECOND-QUARTER, FIRST HALF RESULTS
Next Article:PETROMINERALS CORP. ANNOUNCES SECOND QUARTER RESULTS
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters