QC Holdings Inc facing challenges and ways out

2009 marked revenue decline for QC Holdings Inc. The total revenue was $220.6 million, which is 1% smaller that the revenue for the previous year ($222.6 million).

According to the company the revenue declined, due to smaller volume of installment and payday loans no faxing. Still there was a rise associated with automobile loan sales.

On Dec. 31 the provision for losses was stated at $47.5 million, which is actually 14% smaller than the same indicator in 2008.

Chairman and CEO Don Early commented the situation saying that last year was an unusual experience for the company and its customers. He said that the economic environment that dominated the year made them expect the increase in short term loans(payday loans in one hour, no teletrack payday loans) in comparison with previous years. He also said that the company expected worse loan losses. However, the situation proved to be unusual by resulting in the tendency of customers borrowing less and repaying more.

Regarding branches the company now has a smaller number. At the end of 2008 there were 585 branches, but at the end of 2009 QC Holdings had only 556.

CEO Don Early expressed his concerns about challenges the company faces in 2010. Basically these challenges are rooted in restricting laws in Arizona, Kentucky, South Carolina and Washington. Restrictions may cause $10-12 million decline in 2010 revenue.

Early said that among the measures to compensate the decline there was the decision to implement small fee increases in several states. The automotive group of the company is also expected to better the situation by bringing more revenue. This sphere is getting well experienced and more effective.