Payday Loan Company Acquires Other Cash Advance Branches
By Paul RizzoPayday Loan Writer
QC Holdings, Inc., one of the larger payday advance loan companies in the country, announced the acquisition of 51 South Carolina-based Express Check Advance, LLC payday loan branches.
The deal cost approximately $16.2 million in cash and is effective as of the open of business today.
“This acquisition expands our company with minimal distraction to existing operations and instantly gives us significant market share in South Carolina,” said QC President and Chief Operating Officer Darrin Andersen. “These branches are generating meaningful cash flow and will be accretive to our earnings per share in 2007.”
Revenue from the 51 instant cash loan branches during the last 12 months ending on October 31, 2006 totaled approximately $11.3 million and branch-level gross profit during the same period totaled approximately $2.7 million.
Aggregate current cash advance loans receivable were approximately $5.4 million as of October 31, 2006.
The acquisition, which was funded through QC’s credit facility, raises QC’s total branch count to 611 branches and strengthens its national footprint by establishing a significant presence in South Carolina, where QC already operates 11 payday loan branches.
